Slide 1: Leading the way in Asia, Africa and the Middle East – Full Year Results 2012
Leading the way in Asia, Africa and the Middle East Full Year Results 2012 1
Slide 2: 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 3: Sir John Peace, Chairman
Leading the way in Asia, Africa and the Middle East Sir John Peace Chairman 3
Slide 4: Performance highlights
Performance highlights Profits before tax US$6.9bn 1% Normalised return on equity 12.8% 60bps Dividend per share 84.0c 10.5% 4
Slide 5: Stakeholder interests
Stakeholder interests Allocation of the Group’s earnings 19.5% 18.4% 20.4% 22.6% Dividends paid 35.8% 40.3% 39.6% 37.8% Earnings retained Corporate taxation* 26.7% 22.8% 24.4% 25.1% 18.0% 18.5% 15.6% 14.5% Performance related pay 2009 2010 2011 2012 * Including the UK bank levy 5
Slide 6: Confident start to 2013
SS Standard Chartered Confident start to 2013
Slide 7: Richard Meddings, Group Finance Director
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 7
Slide 8: Performance highlights
Performance highlights 2012 2012 Normalised* Income US$19.1bn 8% Jaws (2%) 5% Profit before tax US$6.9bn 1% 12% Dividend per share 84.0c 10.5% Earnings per share 199.7c 225.2c * Normalised as per details on page 86 of the 2012 press release 8
Slide 9: Group performance
Group performance US$m 2011 2012 YoY% Income 17,637 19,071 8 Net interest income 10,153 11,010 8 Non interest income 7,484 8,061 8 Expenses (9,917) (10,896) 10 Operating profit before impairment 7,720 8,175 6 Loan impairment (908) (1,221) 34 Other impairment (111) (194) 75 Profit from associates 74
Slide 10: Performance metrics
Performance metrics Normalised earnings – US$m 2011 2012 YoY% Profit attributable to ordinary shareholders 4,748 4,786 1 Gains arising on repurchase of subordinated liabilities (90) US settlements 667 Impairment of associates 70 Others (66) (35) Normalised earnings 4,682 5,398 15 Normalised basic EP
Slide 11: Diversity a differentiator
Diversity a differentiator Operating income Operating income by geography by product Americas, UK & Principal Finance 3% Europe Hong Kong CCPL* 14% Corporate Finance 12% 18% 12% Africa Wealth Management ALM 4% 7% 8% Credit and Other 2% Capital Markets 3% Consumer Singapore Banking Deposits 8% MESA 1
Slide 12: Strong foundations
Strong foundations Basics of good banking Principles Capital & Risk Financial Liquidity Metrics A conscious Strongly Clearly defined Double digit strategy to capitalised risk appetite income build balance growth Highly liquid Geographic, sheet strength sector and Neutral to Balance s
Slide 13: Group balance sheet - Liabilities
Group balance sheet - Liabilities 23% Deposit funded franchise 391 427 6 346 7 5 204 193 163 Net interbank lender and Other deposits Time deposits US$194bn of liquid assets 191 217 CASA*** 178 2010 2011 2012 Minimal refinancing requirements 40 77.9 76.6 80 74.1 70 35 Basel III NSFR* and 30.4
Slide 14: Group balance sheet - Assets
Group balance sheet - Assets Customer loans and advances Well diversified by by geography product, segment and Americas, UK & Europe 18% geography Hong Kong 18% Africa 3% 82% of Consumer MESA 7% Singapore 19% Banking portfolio fully or India 4% partially secured Other APR 18% Korea 13% No dire
Slide 15: Capital generation
Capital generation Capital ratios % RWA* US$bn 302 286 17.9 17.6 17.4 262 271 24 16.9 22 15.1 19 21 31 4.0 3.9 31 3.5 4.0 29 29 2.0 1.9 1.8 1.7 6.6 Tier 1 13.4% 247 2.4 214 221 233 11.9 11.8 11.6 11.7 6.1 H1 08 H1 11 H2 11 H1 12 H2 12 H1 11 H2 11 H1 12 H2 12 Tier 2 Core Tier 1 Credit risk Operationa
Slide 16: Consumer Banking performance
Consumer Banking performance US$m 2011 H1 12 H2 12 2012 YoY% Income 6,791 3,515 3,687 7,202 6 Expenses (4,605) (2,307) (2,416) (4,723) 3 Operating profit before impairment 2,186 1,208 1,271 2,479 13 Loan impairment (524) (300) (397) (697) 33 Other impairment (12) (9) 5 (4) (67) Operating profit 1,65
Slide 17: Consumer Banking income
Consumer Banking income FY 12 vs FY 11 H2 12 vs H1 12 Mortgages (6%) 12% 1% 2% (12bps) 5% Deposits 11% (1%) 11% 7% 6bps (5bps) Wealth Management 0% 0% 17% 11% CCPL 12% 9% 17% 10% (12bps) (22bps) Change in income Change in footing* Change in margin For Mortgages, footings are loans to customers, for
Slide 18: Consumer Banking – Impairment trend
Consumer Banking – Impairment trend 2011 H1 12 H2 12 2012 Mortgages LI*/ANR** 0.02% (0.02)% 0.02% 0.00% 30dpd/ENR*** 0.67% 0.66% 0.68% 0.68% Loan book (US$bn) 73 72 73 73 LI (US$m) 12 (9) 8 (1) SME LI/ANR 0.52% 0.50% 0.62% 0.56% 90dpd/ENR 0.57% 0.53% 0.68% 0.68% Loan book (US$bn) 19 20 21 21 LI (US$
Slide 19: Wholesale Banking performance
Wholesale Banking performance US$m 2011 H1 12 H2 12 2012 YoY% Income 10,846 5,996 5,783 11,779 9 Expenses (5,147) (2,656) (3,343) (5,999) 17 Operating profit before impairment 5,699 3,340 2,440 5,780 1 Loan impairment (384) (283) (241) (524) 36 Other impairment (99) (65) (55) (120) 21 Operating prof
Slide 20: Diversified income streams
Diversified income streams Total income - US$m 2011 H1 12 H2 12 2012 YoY% Lending & Portfolio Management 841 447 444 891 6 Transaction Banking 3,247 1,842 1,829 3,671 13 Trade 1,595 958 982 1,940 22 Cash Mgt & Custody 1,652 884 847 1,731 5 Global Markets 6,758 3,707 3,510 7,217 7 Financial Markets 3
Slide 21: Wholesale Banking - Financial Markets
Wholesale Banking - Financial Markets Total income - US$m 2011 H1 12 H2 12 2012 YoY% Foreign Exchange 1,434 743 539 1,282 (11) Rates 893 539 427 966 8 Commodities and Equities 603 277 244 521 (14) Capital Markets 548 290 301 591 8 Credit and Other 210 144 159 303 44 Total Financial Markets 3,688 1,9
Slide 22: Wholesale Banking - Impairment
Wholesale Banking - Impairment US$m H1 11 H2 11 2011 H1 12 H2 12 2012 YoY% Loan impairment (201) (183) (384) (283) (241) (524) 36 Other impairment (68) (31) (99) (65) (55) (120) 21 Total impairment (269) (214) (483) (348) (296) (644) 33 Loans and advances to 142.7 147.3 147.3 155.8 156.7 156.7 6 cus
Slide 23: Wholesale Banking - Risk
Wholesale Banking - Risk Wholesale Banking loans and advances 62% of Wholesale Banking loans to customers by region less than 1 year maturity Hong Kong 14% Americas, UK & Europe 30% Well diversified book by geography Singapore 18% and industry Africa 4% Korea 5% Continue to distribute assets M
Slide 24: Performance by geography
Performance by geography Income Profit US$m 2011 2012 YoY% 2011 2012 YoY% Hong Kong 3,049 3,348 10 1,551 1,660 7 Singapore 2,186 2,203 1 1,002 966 (4) Korea 1,718 1,852 8 172 514 199 Other APR 3,511 3,960 13 1,415 1,242 (12) India 1,805 1,585 (12) 804 676 (16) MESA 2,219 2,234 1 834 786 (6) Africa 1
Slide 25: Korea
Korea Underlying income up 3% on 2011 Reported income and profit Personal Debt Rehabilitation Scheme 8% filings increased in 2012 Wholesale Banking network income increased 12% 199% 2011 Korean banking sector reporting low 2012 returns and increasing loan impairment Income Profit 2011 2011 2
Slide 26: Africa
Africa 8 markets delivering income of over Reported income and profit US$100m 15% 27 branches opened as part of the ‘Africa100’ initiative 23% Wholesale Banking income crossed US$1 billion 2011 Network income up 25% YoY 2012 Income Profit US$m 2011* H1 12* H2 12 2012 YoY % Income 1,382 735 8
Slide 27: Americas, UK & Europe
Americas, UK & Europe Reported income and profit Double digit income growth in both businesses 30% One of the largest regional contributors to Group Wholesale Banking income Strategy to capture flows to and from (29)% 2011 Asia, Africa and the Middle East 2012 Income Profit 2011 2012 2012 Unde
Slide 28: Outlook
Outlook We remain focused on consistent delivery against our four financial objectives Good momentum in both Consumer Banking and Wholesale Banking Remain focused on balance sheet foundations Well positioned in growth markets 28
Slide 29: Peter Sands, Group Chief Executive
Standard @&° Chartered S$ Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 29
Slide 30: Years of growth: profit and income
Standard Q&@ 1 @) Years of growth Chartered SQ Profit and income (US$bn) I Operating income {J Operating profit before tax 20 10 year 15 income 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Income growth (US$m) @ 2003 @ 2012 Hong Kong as % of Group income US$1.4bn a - a sb Nigeria i o } mn
Slide 31: Years of growth: dividend, tax and lending
Standard @&@ 1 @) Years of growth Chartered SQ Dividend and tax 2003 - 2012 to date (US$m) HM Dividend = Tax 3,000 Total dividend 2,250 1,500 750 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Lending 2003 - 2012 (US$m) © Loans and advances to customers 300,000 225,000 150,000 75,000 2003 2004
Slide 32: Years of growth: income
Standard Q&° | nd la Chartered SQ Income (US$m) 3000 2250 1500 750 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 32
Slide 33: Years of growth: onshore and network income
Standard @&@ | nd la Chartered SQ Income (US$m) II Onshore income [J Network income 3000 < 2250, ——____ 2250 \ Total income from 4500 India franchise 750 j re) 4% 0 2011 2012 2003 2004 33
Slide 34: India
India Standard Chartered SQ 34
Slide 35: Current macro environment
Current macro environment 35
Slide 36: Current macro environment: GDP growth
Standard @&@ Current macro environment Chartered && GDP growth % Euro area fl Lower growth HB Higher growth 36
Slide 37: Current macro environment: GDP growth
Current macro environment Chartered SS GDP growth % | Gr @ Y.. #¥ indongsia we. = _ ¢ fl Lower growth HB Higher growth 37
Slide 38: Current macro environment: trade flows
Standard @&@ Current macro environment Chartered && Trade flows Hi Standard Chartered presence countries I Non-presence countries - Sub-Saharan Africa 38
Slide 39: Current macro environment: trade flows 2001-2011
Standard @@ Current macro environment Chartered && Trade flows 2001 2011 US$ 18bn JM US$ 241bn 39
Slide 40: Current macro environment: Asian middle class
Standard Q&° Current macro environment Chartered && HE % of global middle class living in Asia* N * Source: OECD 40
Slide 41: Current macro environment: RMB
Standard @@ Current macro environment Chartered && RMB Trade settled in RMB 5.1% mp 12.6%} 2010 2012 Y Offshore RMB © market (indexed) 100 » 7/48 | 2010 2012 ff 41
Slide 42: Regulation and politics
Regulation and politics Individual Liquidity Guidance (ILG) Material Holdings Deduction Individual Liquidity Adequacy Assessment (ILAA) Synthetic Approvals Recovery & Resolution Plans (RRPs) s166 Skilled Persons Review Internal Capital Adequacy Assessment (ICAAP) Solo Consolidation Waiver Stressed V
Slide 43: Our strategy
Our strategy Standard Chartered Our ° oh 3 £ 2 a = ° Our Strengths Values Commitments Our Strategic Intent The world’s best international bank Leading the way in Asia, Africa and the Middle East Our Brand Promise Here for good Courageous Responsive International Creative Trustworthy We take measured
Slide 44: Our strategy: 2013 Priorities
Our strategy 2013 Priorities Build stronger relationships with our clients and customers Prove we are Here for good Innovate and digitise Intensify collaboration across the network Get fitter and more flexible in the way we work Accelerate the next generation of leaders Deliver superior financial pe
Slide 45: Our values and culture
Our values and culture Chartowd & 45
Slide 46: Technology-driven innovation
Standard @&@ Technology-driven innovation Chartered & © Operations cost income ratio (%) (LHS) © Productivity (Volume in ‘000/FTE) (RHS) 46
Slide 47: Technology-driven innovation: Breeze
Technology-driven innovation Chartered & aoe Sy | Breeze — Sicirer | Chartered & Breeze OPOIE//HIBS Se! peo ° —_ > c eeooo00o © © Tannese Breeze Korea presents the advanced version of Breeze equipped with innovative and Korean localized features on top of its common platform in December 2012 47
Slide 48: Collaborative network
Standard Q&° Collaborative network Chartered & Standard Chartered network 48
Slide 49: Collaborative network: new markets
Standard Q&° Collaborative network Chartered & New markets 2011 Mongolia 2013 Myanmar ¢ Mongolia - 2011 rep office opened ¢ Turkey - 2012 subsidiary acquired ¢ Myanmar - 2013 rep office opened ¢ Angola - 2013 agreement to form joint venture 49
Slide 50: ASEAN
Standard ASEAN Chartered SS ) a» 7.3% 1 US$ 4.5bn HB Operating income (US$bn) \ 2012 Income a 5 5 year \ 4 —— Bien CAGR mB 14% ? 2007 2012 50
Slide 51: Greater China
Standard @&@ Greater China Chartered && > US$ 4.9bn 2012 Income / HE Operating income (US$bn) ov ° 5 year income CAGR 9% 2007 2012 51
Slide 52: Greater China: Hong Kong
Standard @@ Greater China Chartered && | » 10% US$ 3.3bn Hong Kong 2012 income y
Slide 53: Standard @&°
Standard @&° Chartered SQ 53
Slide 54: Summary
Standard @&@ Su mm ary Chartered SQ parler eee - e 10 years of unbroken income profit and growth e Good business momentum and strong balance sheet e Continued investment in markets, technology and people e Clear strategy and relentless focus on the basics of banking e Strong culture a 54
Slide 55: Summary: financial aspirations
Summary Chartered SS Our consistent financial aspirations: e Double-digit income growth e Double-digit EPS growth e Costs growing in line with income . rgood e Mid-teens RoE un 5)
Slide 56: Q&A
Standard @&° Chartered SQ Q&A 56