Standard Chartered Plc · LSE:STAN
Standard Chartered — Investor Day (November 2013)
21 slides from Standard Chartered's investor day presentation, Nov 11, 2013
Slide 1: Forward looking statement
Forward looking statement 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 Group’s businesses and the transactions described in t
Slide 2: 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
Slide 3: Agenda
Agenda CEO Introduction Peter Sands Financial review Richard Meddings Lunch Wholesale Banking presentation Mike Rees, Saleem Razvi Consumer Banking presentation Steve Bertamini, Vishu Ramachandran Tea break Risk management presentation Richard Goulding Wrap up and closing remarks Peter Sands Note: T
Slide 4: Key messages
Key messages 2013 performance has been resilient We are confident in our markets and our competitive strengths Our strategy remains consistent and we are sharpening our focus We aspire to strong growth while focusing on returns
Slide 5: Macro environment
Macro environment Real GDP growth (%) Asia 6.7 6.5 6.5 6.3 2012 2013 2014 2015-2018 China 7.7 7.6 7.4 7.0 Africa Advanced economies MENA* 5.3 4.9 5.4 5.4 4.5 4.0 4.3 3.8 2.4 2.0 1.4 1.0 2012 2013 2014 2015-2018 2012 2013 2014 2015-2018 2012 2013 2014 2015-2018 US 2.8 1.6 2.5 3.3 Source: Standard Cha
Slide 6: Macro environment – Asia
Macro environment – Asia Net foreign assets (% of GDP) 60 40 20 0 -20 China Malaysia Thailand Philippines Korea India Indonesia 1994 - 1996 2010 - 2012 \ Current account (% of GDP) 10 5 0 -5 -10 Malaysia Philippines Korea China Thailand Indonesia India 1994 - 1996 2010 - 2012 Real effective exchange
Slide 7: Macro outlook – Asia, Africa and the Middle East
Macro outlook – Asia, Africa and the Middle East World Real GDP (US$trn) 89.3 3.9 (25%) 6.6 (42%) 5.3 73.5 (33%) 2013 Advanced Asia, Africa and the Other 2018 economies Middle East 2013–18 growth Source: International Monetary Fund (Oct 2013)
Slide 8: Macro outlook – China
Macro outlook – China Absolute Real GDP growth (US$trn) 3.4 3.0 2.3 China 2002-07 2007-12 2012-17 Urban population (millions) 926 691 2011 2025 Real GDP / Capita ($) Economic reform 9,000 “We should dare to tackle difficulties and 6,600 venture along dangerous paths to break through barriers to refo
Slide 9: Macro outlook – India
Macro outlook – India India real GDP growth (%) 8.0 6.5 5.0 5.3 4.7 India 2007-11 2012 2013 2014 2015-18 Incremental labour force (millions) 90 200 110 2011-2020 2021-2030 Total Source: Standard Chartered Research, International Monetary Fund, Goldman Sachs
Slide 10: Macro outlook – Africa
Macro outlook – Africa Working age population (millions) Africa 793 612 466 355 2000 2010 2020 2030 Top 5 trading partners 2002-2012 2012 trade volume - US$bn CAGR 102 15% USA 86 26% China India 68 29% South Africa 44 17% UK 36 11% Source: UN population database, UNCTAD
Slide 11: Banking sector
Banking sector Gtandard & Technology
Slide 12: Our strengths
Our strengths Differentiated network Culture – Here for good 1902 1925 1858 1858 1894 1912 1863 1906 Balance sheet strength Conservative management philosophy Strong capital position – Core Tier 1 No compromise on credit quality ratio of 11.4% at 30 June 2013 Funding before lending Basel III
Slide 13: Our priorities
Our priorities Continuing to build our business for the long term Setting aspirations Proving we are Here for good Innovating and digitising Investing in profitable growth Making choices to reflect near term environment Sharpening capital allocation Optimising our portfolio Refocusing
Slide 14: Our aspirations
Our aspirations Build trusted relationships with the people, companies and Relationships institutions shaping our markets’ future Become the undisputed leader in commercial payment and Trade financing for and in Asia, Africa and the Middle East Play a leading role in facilitating investment an
Slide 15: Our trade and wealth aspirations
Our trade and wealth aspirations Trade opportunity Standard Chartered - Trade assets (US$bn) AAME trade volume* (US$trn) 31% 9% CAGR 74 CAGR 14 7 33 2009 2012 2012 2020 Wealth opportunity Standard Chartered – Wealth income (US$m) Global private financial wealth (US$trn) 2012-17 CAGR 11% 1,275 Asia,
Slide 16: Culture – Here for good
S Standard Chartered Here for good Culture
Slide 17: Technology
Technology Chartered SS
Slide 18: Tests for peripheral business
Tests for peripheral business Does this business bank the people, companies and Clients institutions that shape our markets’ future? Does this business drive investment, trade and Activities creation of wealth? Here for good Is the business consistent with Here for good? Does the business strengthen
Slide 19: Korea
Korea Korea banking sector Korea 2005 2006 2007 2008 2009 2010 2011 2012 H1 13 Sector income Sector Return on Equity (ROE) Source: Korea Financial Supervisory Service
Slide 20: Financial framework
Financial framework Double digit income growth Neutral cost – income jaws (with positive bias) Double digit Earnings per Share (EPS) growth Mid-teens Return on Equity (ROE) over the medium term
Slide 21: Key messages
Key messages 2013 performance has been resilient We are confident in our markets and our competitive strengths Our strategy remains consistent and we are sharpening our focus We aspire to strong growth while focusing on returns