Standard Chartered Plc · LSE:STAN
Standard Chartered — H1 2010 Earnings Presentation
34 slides from Standard Chartered's earnings presentation, 2010
Slide 1: Half Year Results 2010
Half Year Results 2010 Leading the way in Asia, Africa and the Middle East
Slide 2: Forward looking statements
Forward looking statements This presentation contains or incorporates by reference ‘forward-looking statements’ regarding the belief or current expectations of Standard Chartered, the Directors and other members of its senior management about the Company’s businesses and the transactions described i
Slide 3: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 3
Slide 4: Key highlights
Key highlights Income over US$7.9 billion and record levels of profit Costs up as we continue to invest with confidence Risk environment improving and loan impairment sharply down Foundations remain in excellent shape 4
Slide 5: Group performance
Group performance H1 10 vs US$m H1 09 H2 09 H1 10 YOY % H2 09 % Income 7,960 7,224 7,924 (0) 10 Expenses (4,027) (3,925) (4,344) 8 11 Operating profit before impairment 3,933 3,299 3,580 (9) 9 Loan impairment (1,088) (912) (437) (60) (52) Other impairment (15) (87) (50) 233 (43) Profit from associat
Slide 6: Performance metrics
Performance metrics H1 09 H1 10 YOY % Normalised EPS (cents) 95.0 104.9 10 DPS (cents) 21.23 23.35 10 Normalised ROE (%) 17.0 14.7 6
Slide 7: Group balance sheet
Group balance sheet 300 H1 10 vs YOY % H2 09 % 225 US$bn CASA 19 2 150 Time deposits 19 15 75 Other deposits 8 20 0 H1 08 H2 08 H1 09 H2 09 H1 10 Total 19 8 CASA* Time deposits Other deposits 84.1 28 27.2 85 26.2 26 78.4 80 78.6 74.8 Liquid asset 24 76.2 75 A/D ratio % ratio % 24.1 22.8 23.1 22 70 2
Slide 8: Group balance sheet - assets
Group balance sheet - assets H1 10 vs US$bn H1 09 H2 09 H1 10 YOY % H2 09 % Consumer loans to customers 84.5 94.6 102.9 22 9 Wholesale loans to customers 101.2 108.1 117.2 16 8 Portfolio impairment provision (0.8) (0.9) (0.8) 0 (11) Derivatives 45.8 38.2 44.6 (3) 17 Loans and advances to banks 45.4
Slide 9: Capital
Capital % 16.6 16.5 16 15.6 15.5 15.1 5.1 5.0 4.3 5.7 12 6.6 3.1 2.6 2.2 2.4 8 2.4 Tier 1 Tier 1 Tier 1 Tier 1 11.5 11.5 11.2 Tier 1 9.9 8.9 9.0 4 8.4 8.5 7.5 6.1 0 H1 08 H2 08 H1 09* H2 09 H1 10 Core Tier 1 Tier 2 and 3 * Includes the impact of equity placing 9
Slide 10: Consumer Banking performance
Consumer Banking performance US$m H1 09 H2 09 H1 10 YOY % H1 10 vs H2 09 % Income 2,685 2,944 2,912 8 (1) Expenses (1,780) (1,929) (1,966) 10 2 Operating profit before impairment 905 1,015 946 5 (7) Loan impairment (563) (489) (299) (47) (39) Other impairment 6 (7) (4) nm (43) Operating profit 348 5
Slide 11: Consumer Banking performance trends
Consumer Banking performance trends Income Expenses US$m BC Card US$m US$68m 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1,000 H2 08 H1 09 H2 09 H1 10 H2 08 H1 09 H2 09 H1 10 Loan impairment Profit US$m US$m 800 800 600 600 400 400 200 200 0 0 H2 08 H1 09 H2 09 H1 10 H2 08 H1 09 H2 09 H1 1
Slide 12: Consumer Banking income
Consumer Banking income H1 10 vs H1 09 H1 10 vs H2 09 Mortgages 36% 4% 21% 6% 9 bps -13 bps Deposits -16% -3% 9% 5% -27 bps -7 bps Change in income Increase in footings* Change in margin * For mortgages and CCPL footings are loans to customers, for SME loans to customers and deposits combined and fo
Slide 13: Consumer Banking income continued
Consumer Banking income continued H1 10 vs H1 09 H1 10 vs H2 09 CCPL 4% -5% 7% 1% 10 bps 12 bps SME 20% 7% 23% 13% -32 bps -15 bps Change in income Increase in footings* Change in margin * For mortgages and CCPL footings are loans to customers, for SME loans to customers and deposits combined and fo
Slide 14: Consumer Banking loan impairment trend
Consumer Banking loan impairment trend Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 H1 10 Mortgages LI/ANR 0.31% 0.08% 0.16% 0.03% 0.07% 0.05% 30dpd/ENR 1.19% 0.99% 0.90% 0.70% 0.70% 0.70% Loan book (US$bn) 51 55 58 60 61 61 LI (US$m) 40 11 23 5 12 17 SME LI/ANR 1.96% 1.48% 1.33% 0.68% 0.52% 0.60% 90dpd/ENR 2.42%
Slide 15: Wholesale Banking performance
Wholesale Banking performance H1 10 vs US$m H1 09 H2 09 H1 10 YOY % H2 09 % Income 5,027 4,264 5,012 (0) 18 Expenses (2,247) (1,938) (2,357) 5 22 Operating profit before impairment 2,780 2,326 2,655 (4) 14 Loan impairment (525) (423) (138) (74) (67) Other impairment (6) (76) (46) nm (39) Operating p
Slide 16: Wholesale Banking income
Wholesale Banking income Client income growth YOY % Income growth YOY % Lending and Global Corporates 16 13 Portfolio Management Financial Institutions 3 Transaction Banking 1 Local Corporates 26 Global Markets (2) Commodity Traders 40 16
Slide 17: Diversified income streams
Diversified income streams Total income by product H1 10 vs US$m H1 09 H2 09 H1 10 YOY % H2 09 % Lending & Portfolio Mgt 412 437 465 13 6 Transaction Banking 1,272 1,265 1,282 1 1 Trade 625 664 691 11 4 Cash Mgt & Custody 647 601 591 (9) (2) Global Markets 3,343 2,562 3,265 (2) 27 Financial Markets
Slide 18: Wholesale Banking Financial Markets
Wholesale Banking Financial Markets Total income by product H1 10 vs US$m H1 09 H2 09 H1 10 YOY % H2 09 % FX 831 518 646 (22) 25 Rates 573 306 512 (11) 67 Commodities and Equities 236 153 165 (30) 8 Capital Markets 226 183 233 3 27 Credit and Other 170 115 155 (9) 35 Total Financial Markets 2,036 1,
Slide 19: Wholesale Banking loan impairment
Wholesale Banking loan impairment US$m H1 09 H2 09 H1 10 YOY % Specific impairment provision (498) (384) (204) (59) Recoveries 19 57 30 58 Portfolio impairment provision (46) (96) 36 nm Total net charge (525) (423) (138) (74) Loans and advances to customers (US$bn)* 101.2 108.1 117.2 16 * Excludes p
Slide 20: Taiwan
Taiwan US$m H1 09 H2 09 H1 10 YOY % Income 270 263 283 5 Expenses (289) (187) (171) (41) Operating profit before impairment (19) 76 112 nm Loan impairment (41) (26) 9 nm Other impairment - (1) - nm Operating profit (60) 49 121 nm 20
Slide 21: Korea
Korea YOY % US$m H1 09 H2 09 H1 10 YOY % Constant currency Income 705 849 796 13 (3) Consumer Banking 423 572 510 21 3 Wholesale Banking 282 277 286 1 (15) Expenses (439) (514) (518) 18 1 Operating profit before impairment 266 335 278 5 (11) Loan impairment (185) (93) (129) (30) (40) Other impairmen
Slide 22: Outlook
Outlook Good momentum in both businesses Well positioned in growth markets Remain focused on foundations 22
Slide 23: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 23
Slide 24: Macro economic risks
Macro economic risks Global imbalances Deleveraging Fiscal tightening and monetary withdrawal Unemployment and protectionism Unintended consequences of regulation 24
Slide 25: Global economic outlook
Global economic outlook GDP forecasts 2010 12 11.0 10.0 10.0 10 9.5 9.5 8.1 8 7.5 6.6 5.9 6.0 5.9 % 6 5.4 5.1 4.8 4.0 4.0 3.8 3.8 4 3.0 3.0 2.7 2.3 2 1.5 1.3 1.2 1.0 0 US UK Eurozone China India* Hong Kong Taiwan Korea Singapore Kenya Nigeria Qatar UAE As at January As at July Source: SCB Global Res
Slide 26: Asian economies
Asian economies 26
Slide 27: Strategy
Strategy Leading the way in Asia, Africa and the Middle East Building deep and enduring relationships Focused on the basics of banking Emphasis on organic growth, supported by capability and geographical acquisitions 27
Slide 28: China
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Slide 29: SME
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Slide 30: Corporate Finance
Corporate Finance Income growth H1 10 vs H1 09 October 2007 52% January 2009 ASIA December 2007 February 2009 H1 2009 H1 2010 30
Slide 31: Investment
Investment Cumulative Years headline jaws (%) Normalised C/I (%) 2 1.0 3 0.4 60 56.4 54.0 54.7 54.3 50 53.6 52.6 53.6 49.6 4 -0.4 40 5 -0.9 30 H1 H1 H1 H1 H1 H1 H1 H1 6 -0.2 03 04 05 06 07 08 09 10 7 0.2 31
Slide 32: Brand
Standard Chartered &Q
Slide 33: India
India 33
Slide 34: Summary
Summary Consistent performance Watchful over global outlook Investing for long term growth Focused on the basics The Bank is in great shape 34