Slide 1: Final Results 2004
Final Results 2004 16 February 2005 Leading the way in Asia, Africa and the Middle East
Slide 2: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Bryan Sanderson Chairman
Slide 3: Performance highlights
Performance highlights Net revenue $5,367m 13% Pre-tax profit $2,158m 39% Normalised EPS 125.9c 40% Normalised ROE 20.1% Dividend (per share) 57.5 c 10.6%
Slide 4: Positioned for growth
Positioned for growth Organic growth Acquisitions and alliances Korea Indonesia China
Slide 5: Governance structure
Governance structure Reinforced Board strength Diversity of expertise Challenge and support
Slide 6: Corporate Responsibility
Corporate Responsibility Tsunami response Seeing is Believing Corporate responsibility structure
Slide 7: Summary
Summary Strong track record Good momentum Greater diversity in earnings
Slide 8: Leading the way: Peter Sands, Group Finance Director
Leading the way in Asia, Africa and the Middle East Peter Sands Group Finance Director
Slide 9: Group results
Group results US$m 2003 2004 Revenue 4,740 5,367 Cost (2,509) (2,815) Goodwill (134) (181) Profit before provisions 2,097 2,371 Debt charge (536) (214) Profit before tax 1,550 2,158
Slide 10: Performance highlights
Performance highlights Normalised metrics 2003 2004 ROE 15.7% 20.1% EPS 90.1c 125.9c Cost to income ratio 53.6% 53.5%
Slide 11: Group adjusted results
Group adjusted results Significant one-offs BOC / Sub HK Tsunami Adjusted US$m 2004 Koram debt Inc Donation 2004 Revenue 5,367 (131) 23 5,259 Cost (2,815) 18 5 (2,792) Goodwill (181) (181) Debt charge (214) (214) Profit before tax 2,158 2,073
Slide 12: Results by geography
Results by geography Operating profit US$m 2003 2004 Change (%) Hong Kong 432 611 41 Singapore 243 254 5 Malaysia 101 125 24 Other APR 153 269 76 India 190 219 15 UAE 141 171 21 Other MESA 174 208 20 Africa 152 215 41 Americas, UK & Group 98 182 86 Goodwill (134) (181) Operating profit 1,550 2,073 3
Slide 13: Consumer Banking results
Consumer Banking results US$m 2003 2004 Revenue 2,488 2,693 Cost (1,259) (1,388) Profit before provisions 1,229 1,305 Debt charge (478) (242) Operating profit 751 1,064
Slide 14: Consumer Banking revenue
Consumer Banking revenue Revenue US$m 2003 2004 Change (%) Hong Kong 954 954 0 Singapore 328 330 1 Malaysia 162 175 8 Other APR 333 393 18 India 223 258 16 UAE 102 124 22 Other MESA 138 172 25 Africa 170 218 28 Americas, UK & Group 78 69 (12) Total 2,488 2,693 8
Slide 15: Consumer Banking costs
Consumer Banking costs Costs US$m 2003 2004 Change (%) Hong Kong 411 415 1 Singapore 110 116 5 Malaysia 79 86 9 Other APR 188 231 23 India 125 153 22 UAE 46 51 11 Other MESA 83 93 12 Africa 159 195 23 Americas, UK & Group 58 48 (17) Total 1,259 1,388 10
Slide 16: Consumer Banking costs
Consumer Banking costs US$m 1,388 1,259 +10% Drivers of cost growth +6% investment for future growth +2% regulatory and control +2% business as usual 2003 2004
Slide 17: Consumer Banking debt charge
Consumer Banking debt charge US$m 2003 2004 Specific provisions Hong Kong 282 88 Rest of world 196 183 General provision release — (29) Total 478 242
Slide 18: Wholesale Banking results
Wholesale Banking results US$m 2003 2004 Revenue 2,252 2,566 Cost 1,250 1,404 Profit before provisions 1,002 1,162 Debt charge (58) 28 Operating profit 933 1,190
Slide 19: Wholesale Banking revenue
Wholesale Banking revenue US$m 2003 2004 Change (%) Trade and lending 815 868 7 Global markets 1,054 1,209 15 Cash management and custody 383 489 28 Revenues 2,252 2,566 14
Slide 20: Wholesale Banking customer revenue growth
Wholesale Banking customer revenue growth % growth 19% Financial 18% institutions 12% Multinational 15% corporates Large local 26% corporates Local 17% corporates 2003 2004
Slide 21: Wholesale Banking costs
Wholesale Banking costs US$m 1,404 1,250 +12% Drivers of cost growth +3% investment for future growth +2% regulatory and control +7% business as usual 2003 2004
Slide 22: Wholesale Banking debt charge
Wholesale Banking debt charge US$m 2003 2004 Specific provisions Gross charge 250 157 Recoveries (182) (159) General provision release (10) (26) Total (58) 28
Slide 23: Risk profile
Risk profile Net NPL* US$m Consumer Banking Wholesale Banking 1200 Net NPL % of $994m 1000 customer assets $860m $780m 800 $668m 600 400 1.7% 1.4% 200 1.2% 0.9% 0 H1 03 H2 03 H1 04 H2 04 Wholesale Banking 79% 81% 82% 86% Cover Ratio (%) *Excluding LMA
Slide 24: Capital management
Capital management Capital adequacy ratios Tier 2 Other Tier 1 Total 14.5% Total 15.0% Core Equity % 8.6% 8.6% 6.5% 6.6% 2003 2004
Slide 25: 2005 Outlook
2005 Outlook Performance momentum Integration of acquisitions IFRS
Slide 26: Leading the way: Mervyn Davies, Group Chief Executive
Leading the way in Asia, Africa and the Middle East Mervyn Davies Group Chief Executive
Slide 27: 2005 priorities
2005 priorities Expand Consumer Banking customer segments and products Continue Wholesale Banking transformation Integrate Korea First Bank and deliver growth Accelerate growth in India and China Deliver further technology benefits Embed Outserve into our culture
Slide 28: Consumer Banking priorities
Consumer Banking priorities Develop key customer segments, eg Youth International banking Scale up SME business Expand presence in growing markets, eg MESA Product and channel innovation, eg Manhattan Moving Partners
Slide 29: Wholesale Banking priorities
Wholesale Banking priorities Deepen customer relationships and improve cross-sell ratios Continue to fill product capability gaps Scale up advisory and debt capital markets Leverage trade corridors
Slide 30: Acquisitions and alliances update
Acquisitions and alliances update Market Product Client India Bohai Bank Project Finance
Slide 31: Korea progress
Korea progress 48.5m population 23.3m banked population $605b GDP 4.0% GDP growth (2005) 3.0% inflation 3.6% unemployment 61% internet penetration 69% cellular penetration Source : Korea National Statistics Office, CEIC, ITU, SCB estimate
Slide 32: Korea First Bank Consumer Banking
Korea First Bank Consumer Banking Share SCB personal loan product Segment focused relationships and platform Launch Mortgage One Cross-sell Create high net worth customer offering Proven track record Product development Distribution models Best practice techniques
Slide 33: Korea First Bank Wholesale Banking
Korea First Bank Wholesale Banking Strengthen KFB product capability Broaden Fee-Based Products Build international cash management and trade business Strengthen global markets Leverage International Network product capabilities Proven track record Grow Client Base Restructure Funding
Slide 34: India
India Branch and representative offices 10 new branches 46 new ATMs Over 3,500 sales staff Launched Manhattan card Launch Utsav - India's first 3D card Launched Local Corporate, Commercial Real Estate & Commodity Finance businesses
Slide 35: China
China Branch and representative offices New RMB licences in Xiamen, Beijing and Nanjing Awarded a derivatives license First foreign bank approved for RMB business with local corporates in Shenzhen Launched QFII investment vehicle Mortgage business relaunched for niche market
Slide 36: Deliver technology benefits
Deliver technology benefits Creating scale and cost efficiencies Increasingly flexible and adaptable platform Innovative technology development Meeting changing regulatory requirements
Slide 37: Embed Outserve
Embed Outserve Voice of customer Process improvement Metrics and measurement Change management and communication
Slide 38: Outlook
Outlook New platforms for growth Good momentum in both businesses Investing for future growth
Slide 39: Appendix
Standard @&@° Chartered & Appendix
Slide 40: The way ahead
The way ahead GDP growth % 2004 2005F* 2006F* China 9.5 8.5 8.0 Singapore 8.3 4.2 3.5 Hong Kong 8.0 4.0 4.0 UAE 8.0 4.0 2.0 Malaysia 7.0 5.8 5.0 India 6.0 7.0 7.0 Nigeria 5.2 7.0 4.9 South Korea 4.8 4.0 4.5 Indonesia 4.8 5.3 5.5 South Africa 3.5 3.8 4.0 *Standard Chartered forecasts