Standard Chartered Plc · LSE:STAN
Standard Chartered — Q1 2025 Earnings Presentation
28 slides from Standard Chartered's earnings presentation, May 2, 2025
Slide 1: Q1'25 results presentation
PUBLIC Q1’25 results presentation 2 May 2025
Slide 2: Key highlights
CONFIDENTIAL Key highlights Overview Income Expenses Strong Q1’25 performance with income up 12% excluding notables and earnings per share up 19% YoY Impairment Balance sheet Capital Business update Guidance The Group’s network is diversified, resilient and agile in the face of an uncertain environm
Slide 3: Our network is a distinctive advantage in an uncertain environment
CONFIDENTIAL Our network is a distinctive advantage in an uncertain environment Cross-border (network) income ……………................................................................................ • FY’24 cross-border (network) income of $7.3bn Outbound Inbound Overview Income • Product split: ~64% T
Slide 4: CIB corporate income with potential exposure to US tariffs is limited
CONFIDENTIAL CIB corporate income with potential exposure to US tariffs is limited US-related corporates income FY’24 …………………………………………………………..……..… Overview • US-related corporates income represents ~$0.9bn or ~7% of CIB FY’24 Income total income Expenses − ~$0.4bn outbound reflects income generated
Slide 5: Well-positioned to capture potential opportunities
CONFIDENTIAL Well-positioned to capture potential opportunities Overview Example opportunities ………………….……………………………………………. Example actions ……………………………..…….…….……….………..... Income Expenses Impairment Balance sheet CIB: Onboarded 10 regional treasury centres1, with dedicated Capital Supply chain diversi
Slide 6: Financial performance
CONFIDENTIAL Financial performance Diego De Giorgi Group Chief Financial Officer 6
Slide 7: Strong performance in Q1'25
CONFIDENTIAL Strong performance in Q1’25 $m Q1’24 Q1’25 YoY ccy • Income up 7% YoY at ccy, up 12% excluding notable items1 of $234m B/(W) Overview in Q1’24 Net interest income (NII) 2,656 2,796 7% Income Expenses • Expenses up 5% YoY at ccy, largely driven by business growth and Non-NII 2,496 2,594
Slide 8: NII resilient; continued growth in non-NII
CONFIDENTIAL NII resilient; continued growth in non-NII NII ($m) ……………………………………………………………………………………..…………………………..…….… • NII down 5% QoQ at ccy mainly driven by: Overview (5%) ccy Income − Particularly high Q4’24 which benefitted from the $147m Expenses 2,977 deposit insurance reclassification 2,867 37
Slide 9: Expenses well-controlled
CONFIDENTIAL Expenses well-controlled Operating expenses1 movement ($m) ………………………………………………………………... • Expenses1 up 5% YoY at ccy Overview Income − Business growth from continued investment in frontline and +5% ccy Expenses process-improvement technology, partly offset by efficiency saves 49 2,915 Im
Slide 10: Credit quality remains strong and has improved over time
CONFIDENTIAL Credit quality remains strong and has improved over time Credit impairment ($m) ….……………………………………………………………………..……..…… • Credit impairment up $43m YoY Overview Group total 176 73 178 130 219 Income • Ventures charge down $4m QoQ and $18m YoY mainly from reduced 0 Expenses 10 delinquency t
Slide 11: Growth in underlying customer loans and deposits
CONFIDENTIAL Growth in underlying customer loans and deposits Loans and advances (L&A) to customers1 ($bn) ….………………………………………………..……… • Underlying L&A to customers up ~$7bn or 3% since 31.12.24 Overview +3% Income − CIB increase from deal execution in Global Banking and Expenses 2 6 282 some growth i
Slide 12: Robust capital position; low single-digit percentage growth in RWA
CONFIDENTIAL Robust capital position; low single-digit percentage growth in RWA Risk-weighted assets ($bn) ….…………………………………………………………................................... • RWA up ~$7bn or 3% since 31.12.24 Overview +$6.5bn Income − ~$8bn increase in market risk RWA mainly to help clients Expenses 3.1 c
Slide 13: CIB: Double-digit growth in Global Markets and Global Banking
CONFIDENTIAL CIB: Double-digit growth in Global Markets and Global Banking CIB ($m) Q1’24 Q1’25 YoY ccy • CIB income up 4% YoY at ccy B/(W) Overview Income • Global Markets income up 14% YoY at ccy driven by higher flow and Transaction Services 1,603 1,527 (4%) Expenses episodic income Global Market
Slide 14: WRB: Continued strong momentum in Wealth Solutions
CONFIDENTIAL WRB: Continued strong momentum in Wealth Solutions WRB ($m) Q1’24 Q1’25 YoY ccy • WRB income up 12% YoY at ccy with double-digit growth in Wealth B/(W) Overview Solutions Income Investment Products1 424 559 33% Expenses − Strong momentum in Investment Products1, up 33% and largely drive
Slide 15: Guidance unchanged
CONFIDENTIAL Guidance unchanged Overview Guidance1 Income Expenses Impairment Balance sheet Capital Operating income Business update to increase 5-7% CAGR Guidance in 2023-2026, tracking Return at least $8bn towards upper end of Operating expenses2 Positive jaws CET1 ratio of capital to shareholders
Slide 16: Appendices
CONFIDENTIAL Appendices 16
Slide 17: 2025 and 2026 guidance
CONFIDENTIAL 2025 and 2026 guidance 2025 guidance 2026 guidance Income • 5-7% CAGR in 2023-20262,3, currently tracking towards upper end of the • 2025 growth expected to be below 5-7% range1,3 range • Positive income-to-cost jaws in each year excluding the two notables1 • Expenses to be below $12.3b
Slide 18: Income by product
CONFIDENTIAL Income by product Q1’25 YoY ($m) YoY ccy Payments & Liquidity 1,061 (100) (8%) Securities & Prime Services 151 10 8% Trade & Working Capital 315 14 6% Transaction Services 1,527 (76) (4%) Lending & Financial Solutions 452 38 10% Capital Markets & Advisory 96 38 66% Global Banking 548 76
Slide 19: Interest rate assumptions
CONFIDENTIAL Interest rate assumptions Currency-weighted average1 (bps) …………………………………………………………………………………………………………………………………………….…………………………………..…. 446 454 447 417 446 454 447 389 417 371 356 389 347 367 349 325 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Average as of 7.2.25 Average as of 17.4.25 7
Slide 20: Tangible net asset value
CONFIDENTIAL Tangible net asset value Basic # of Tangible equity TNAV per share ordinary shares2 ($m) (cents) (m) As of 31.12.24 37,103 1,541 2,408 Profit attributable to ordinary shareholders 1,590 66 Movement in intangible assets (47) (2) Dividends paid to: Ordinary shareholders - - Other equity h
Slide 21: Limited Hong Kong CRE exposure; mostly secured
CONFIDENTIAL Limited Hong Kong CRE exposure; mostly secured Hong Kong CRE exposure4 ($bn) by credit grade5 ……………… • $2.2bn portfolio book is <0.5% of total Group exposures1, down $0.4bn QoQ due to repayments 2.2 − 83% secured2 with average LTV2 at ~40%; all property collateral located in Hong Kong 1
Slide 22: China portfolio resilient and CRE well provisioned
CONFIDENTIAL China portfolio resilient and CRE well provisioned China ultimate parent company exposure4 ($bn) ……….…………………………. • China portfolio expected to be resilient despite market turbulence − 75% of CIB exposures are investment grade 3% Corporates 10% 3% Sovereigns − 82% of corporate exposure i
Slide 23: Deposit mix within expectations; PTRs managed assertively
CONFIDENTIAL Deposit mix within expectations; PTRs managed assertively Transaction Services CASA% of CIB deposits3,4 ($bn) ………………… • CASA/TD mix broadly stable in CIB, WRB TDs up YoY 63% 63% 62% 64% 64% − Increase in CIB deposits driven by the expected reversal of outflows in Q4 CASA % Other − WRB d
Slide 24: High levels of liquid resources and stable funding
CONFIDENTIAL High levels of liquid resources and stable funding Components of Liquidity coverage ratio (LCR) ……………………………….…….. • LCR of 147%1 is up 9%pts QoQ due to: 148% 147% − Seasonal CASA outflows at year end reversed in Q1 138% − Build-up of term liabilities to fund pipeline asset growth Other
Slide 25: Capital & MREL: Well-positioned for future growth and requirements
CONFIDENTIAL Capital & MREL: Well-positioned for future growth and requirements Capital metrics ……………………………………………………………………………………………………………...… • Minimum CET1 requirement remains unchanged at 10.5% in Q1’25 CET1 minimum requirement1: 35.4% 34.2% 33.6% • CET1 capacity to support growth and shareholder
Slide 26: Select technical and abbreviated terms
CONFIDENTIAL Select technical and abbreviated terms Term Definition Term Definition Adj. Adjustments DVA Debit valuation adjustment: the Group calculates DVA on its derivative AME Africa and the Middle East liabilities to reflect changes in its own credit standing ASEAN Association of Southeast Asia
Slide 27: Select technical and abbreviated terms
CONFIDENTIAL Select technical and abbreviated terms Term Definition Term Definition MDA Maximum distributable amount QoQ Quarter-on-quarter min. Minimum RMs Relationship Managers MREL Minimum requirement for own funds and eligible liabilities RoRWA Return on risk-weighted assets MTNs Medium-term not
Slide 28: Important notice
CONFIDENTIAL Important notice Forward-looking statements The information included in this document may contain ‘forward-looking statements’ based upon current expectations or beliefs as well as statements formulated with assumptions about future events. Forward-looking statements include, without li