Standard Chartered Plc · LSE:STAN
Standard Chartered — Investor Day (May 2019)
24 slides from Standard Chartered's investor day presentation, May 23, 2019
Slide 1: Investor Seminar: Financial Markets
Investor Seminar Financial Markets 23 May 2019
Slide 2: Important notice concerning forward-looking statements
Important notice concerning forward-looking statements Important Notice This document contains or incorporates by reference “forward-looking statements” regarding the belief or current expectations of Standard Chartered PLC (the “Company”), the board of the Company (the “Directors”) and other member
Slide 3: Agenda: Webcast session
Agenda Webcast session CEO, Corporate, Introduction Simon Cooper Commercial & Institutional Banking Financial Roberto Hoornweg Global Head, Financial Markets Markets Focus on: Client Thomas Kikis Global Head, Corporate Sales coverage Product/ Henrik Raber Global Head, Credit Markets Geography Digita
Slide 4: Introduction, Simon Cooper
Introduction Simon Cooper Standard Q@& Chartered Ss
Slide 5: Financial Markets overview
Financial Markets overview Improving return profile • Q1’19 Income up 14% YoY1 • RWA reduced by 40% since 2015 • ROTE +380bps 2015 to 2018 RoTE3 Distinctive offering Profitable growth actions • One-stop-shop for Trade and FX ~10% • Re-orient sales to deepen target client …with significant relationsh
Slide 6: Key messages
Key messages 1 FM is now a 2 … is an integral part 3 … and is executing a sustainably higher of the Group’s network clear plan to deliver returning business proposition profitable growth 5
Slide 7: Financial Markets, Roberto Hoornweg
Financial Markets Roberto Hoornweg 6
Slide 8: The FM business has been fundamentally restructured since 2015
The FM business has been fundamentally restructured since 2015 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth … and cost efficiencies funded Income rose 8% ex de-risking … RWA reduced by 40% increased investment 2015 $2.7bn 2015 2015 Transaction Model de-risking¹ enhancements4 Staff
Slide 9: We are systematically deepening our relationships with clients
We are systematically deepening our relationships with clients 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth Selected “Next” priority clients1 FY’15 FY’18 Delta Number of FM 3 products 4 products products Depth of relationship Number of markets 6 markets 8 markets Average income per
Slide 10: We have a more balanced and diversified business
We have a more balanced and diversified business 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth From a GCNA / FX dominated business … to one that is diversified by region, product and client type RoTE 28% GCNA1 40% 38% FX 52% Financial 52% 48% 1x Institutions2 28% ASA1 18% Credit & 2
Slide 11: Our returns have improved significantly
As a result of these actions … our returns have improved significantly 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth FM is now generating a RoTE around the Group’s 2021 target of 10% … with significant upside potential +380bps 2015 Income Costs RWA & 2018 Impairment 10
Slide 12: We offer our clients a differentiated AAME proposition
We offer our clients a differentiated AAME proposition … 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth Emerging Best-in-class distribution network connecting issuers and investors Better pricing and advice to clients, particularly on AAME1 assets Markets FX2 #1 across AAME1 Sales pr
Slide 13: Our recent relative income trajectory
… which is reflected in our recent relative income trajectory 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth FY 2018 FICC1 Income YoY Q1 2019 FICC1 Income YoY SCB2 3 21 Peer 13 11 -11 Peer 2 2 -9 Peer 3 0 4 Peer 4 -1 -18 Peer 5 -6 1 Peer 6 -8 -8 Peer 7 -8 -5 1. Company reported FICC
Slide 14: Our network contribution is large and generates premium returns
Our network contribution is large and generates premium returns 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth FM contribution to total network income FM network income / total FM income RoRWA Premium1 +300 bps 59% 53% FM 26% 2015 2018 1. RoRWA premium is the difference between netwo
Slide 15: Headwinds offset by healthy macroeconomic trends in our footprint
The headwinds we are facing are offset by healthy macroeconomic trends in our footprint 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth GDP growth • 4%1 GDP growth forecast in our markets (2018-21 CAGR) Potential Global trade growth • 45%1 of Global Trade growth 2018-2023 expected to
Slide 16: We are executing a clear plan to deliver sustainable and profitable growth
We are executing a clear plan to deliver sustainable and profitable growth 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth Relative contribution to 2019-21 RoTE growth Re-orient sales to deepen target client relationships $$ Strengthen credit and key corridor offerings $$$ Increase in
Slide 17: Re-orienting sales to deepen target client relationships
✓ We are re-orienting sales to deepen target client relationships 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth Client penetration Product adjacency Network maximisation Relative RoTE 2019-21 delta potential $$ $$ $$$ Selected levers • Re-orient sales to • Accelerate the move • Stre
Slide 18: Strengthening our credit and key corridor offerings
✓ We are strengthening our credit and key corridor offerings 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth Credit solution China opening Africa opportunity Relative RoTE 2019-21 delta potential $$$ $$ $$ Selected levers • Utilise leading Global • Maintain leadership in • Ambition to
Slide 19: Increasing investment in data analytics and process re-engineering
✓ We are increasing investment in data analytics and process re-engineering 1. 1 Higher returns 2. 2 Network driver 3. 3 Profitable growth Data analytics Platforms Process re-engineering Relative RoTE 2019-21 delta potential $$ $$ $ Selected levers • Cluster clients by • Multi-year investment • Rapi
Slide 20: Concluding remarks
Concluding remarks 1 FM is now a 2 … is an integral part 3 … and is executing a sustainably higher of the Group’s network clear plan to deliver returning business proposition profitable growth Expected FM contribution over 2019 – 2021 period Income > CIB average Costs < Inflation RoTE > Group target
Slide 21: Standard Chartered
Standard Chartered &Q 20
Slide 22: Speaker biographies
Investor Seminar Speaker biographies 21
Slide 23: Speaker biographies
Speaker biographies Simon Cooper is Chief Executive Officer, Corporate, Commercial & Institutional Banking. He joined Standard Chartered Bank in April 2016 as CEO of the Corporate & Institutional Banking segment. This global business is the largest segment in Standard Chartered, focusing on the bank
Slide 24: Speaker biographies
Speaker biographies Thomas Kikis is Global Head, Corporate Sales, responsible for dealing with and advising corporations on their financial market exposure and liquidity management. He is a member of the Financial Markets Management Team and is based in New York. Thomas joined Standard Chartered in