Slide 1: Full year results 2010
Full year results 2010 Leading the way in Asia, Africa and the Middle East 1
Slide 2: Forward looking statements
Forward looking statements 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
Slide 3: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East John Peace Chairman 3
Slide 4: Performance highlights
Performance highlights Income US$16.06bn 6% Profit before tax US$6.12bn 19% Normalised EPS 197.0c 14% Dividend (per share) 69.15c 9% Core Tier 1 capital 11.8% 4
Slide 5: Here for good
Here for good 5
Slide 6: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 6
Slide 7: Key highlights
Key highlights Record levels of income and profit Costs up as we continue to invest with confidence Risk environment improving and loan impairment sharply down Foundations of capital, liquidity and funding remain in excellent shape p Ratings g upgrade pg 7
Slide 8: Group performance
Group performance US$m 2009 2010 YOY % Income 15,184 16,062 6 Expenses (7 952) (7,952) (9 023) (9,023) 13 Operating profit before impairment 7,232 7,039 (3) Loan impairment (2 000) (2,000) (883) (56) Other impairment (102) (76) (25) Profit from associates 21 42 100 Profit before tax 5,151 6,122 19 P
Slide 9: Expense growth
Expense growth US$m c.150 (c.120) c.40 9,023 c.250 Regulatory & Regulatory Other compliance li settlements c.350 FX WB c 400 c.400 CB WB BAU CB 7 952 7,952 Incremental investment 7 000 7,000 2009 2010 9
Slide 10: Performance metrics
Performance metrics Pre rights Post rights 2009 2009 2010 Normalised EPS (cents) 179.8 173.2 197.0 N Normalised li d ROE (%) 14 3 14.3 14 3 14.3 14 1 14.1 10
Slide 11: Group balance sheet
Group balance sheet 350 H2 10 vs YOY % 300 H1 10 % 250 US$bn 200 13 11 CASA 150 100 Time deposits p 21 6 50 Total 17 8 0 H1 09 H2 09 H1 10 H2 10 CASA* Time deposits Other deposits 28 27.2 85 26.6 26.2 26 78.4 80 78.6 77.9 Liquid asset 24 76.2 75 A/D ratio % ratio % 24.1 22 70 20 65 H1 09 H2 09 H1 10
Slide 12: Group balance sheet - assets
Group balance sheet - assets Cash at C Other LTV of mortgage gage book 51% central banks Consumer Banking loans IInvestment t securities t 67% off Wholesale Wh l l Banking B ki loans less than 1 year maturity Assets held at fair value Wholesale Limited Li it d exposure to Loans and Banking loa
Slide 13: Capital
Capital % 20 18 4 18.4 16.5 15.8 15.5 4.4 16 5.0 5.3 4.3 2.2 12 2.6 2.2 2.9 8 Tier 1 Tier 1 Tier 1 14.0 Tier 1 Ti 11 8 11.8 10.5 11.5 11.2 4 8.9 9.0 7.6 0 H1 09 H2 09 H1 10 H2 10 Core Tier 1 Tier 2 13
Slide 14: Consumer Banking performance
Consumer Banking performance US$m 2009 2010 YOY % Income 5,629 6,079 8 Expenses (3,709) (4,176) 13 Operating profit before impairment 1,920 1,903 (1) Loan impairment (1,052) (578) (45) Oth impairment Other i i (1) (12) nm Operating profit 867 1,313 51 14
Slide 15: Consumer Banking performance trends
Consumer Banking performance trends Income Expenses US$m BC Cards US$m US$68m 3,000 , 3,000 , 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1,000 H1 09 H2 09 H1 10 H2 10 H1 09 H2 09 H1 10 H2 10 Loan impairment Profit US$m US$m 800 800 600 600 400 400 200 200 0 0 H1 09 H2 09 H1 10 H2 10 H1 09 H2 09 H1 10
Slide 16: Consumer Banking income
Consumer Banking income H2 10 vs H1 10 2010 vs 2009 Mortgages 6% 22% 16% 23% -20 bps -13 bps Deposits 11% -8% 10% 15% 1 bps -16 16 bps Wealth Management 13% 24% 25% 36% Change in income Increase in footings* Change in margin * For mortgages, footings are loans to customers, for deposits, deposits on
Slide 17: Consumer Banking income continued
Consumer Banking income continued H2 10 vs H1 10 2010 vs 2009 CCPL 7% 3% 16% 17% -35 bps -7 bps SME 6% 14% 16% 25% -21 21 bps -34 34 bps Change in income Increase in footings* Change in margin * For CCPL, footings are loans to customers, for SME, loans to customers and deposits combined 17
Slide 18: Consumer Banking loan impairment trend
Consumer Banking loan impairment trend FY 09 H1 10 H2 10 FY 10 Mortgages LI/ANR 0.17% 0.05% 0.09% 0.07% 30dpd/ENR 0.90% 0.70% 0.61% 0.61% Loan book (US$bn) 58 61 71 71 LI (US$m) 90 17 32 49 SME LI/ANR 1.74% 0.60% 0.71% 0.66% 90dpd/ENR 1.61% 1.10% 0.72% 0.72% Loan book (US$bn) 13 14 17 17 LI (US$m) 2
Slide 19: Wholesale Banking performance
Wholesale Banking performance US$m Expenses growth 2009 2010 YOY % Income 9,291 Other 1% 9,979 7 Expenses (4,185) (4,840) 16 Operating O i profit fi Investment before impairment 24% 5,106 5,139 1 BAU Loan impairment p ((948)) 43% ((305)) ((68)) Other impairment Regulatory & (82) (64) (22) compliance
Slide 20: Wholesale Banking income
Wholesale Banking income Client income growth YOY % Income growth YOY % Lending and Global Corporates 21 2 Portfolio Management Financial Institutions 6 Transaction Banking 9 Local Corporates 16 Global Markets 7 Commodity Traders 38 20
Slide 21: Diversified income streams
Diversified income streams Total income by product US$m 2009 H1 10 H2 10 2010 YOY % Lending & Portfolio Mgt 849 465 403 868 2 Transaction Banking 2,537 1,282 1,488 2,770 9 Trade 1,289 691 776 1,467 14 Cash Mgt & Custody 1,248 591 712 1,303 4 Global Markets 5,905 3,265 3,076 6,341 7 Financial Markets
Slide 22: Wholesale Banking Financial Markets
Wholesale Banking Financial Markets T t l income Total i by b product d t US$m 2009 H1 10 H2 10 2010 YOY % Foreign Exchange 1,349 646 554 1,200 (11) Rates 879 512 325 837 (5) Commodities and Equities 389 165 246 411 6 Capital Markets 409 233 308 541 32 Credit and Other 285 155 159 314 10 Total Finan
Slide 23: Wholesale Banking loan impairment
Wholesale Banking loan impairment US$m 2009 H1 10 H2 10 2010 YOY % Specific impairment provision (882) (204) (224) (428) (51) Recoveries 76 30 48 78 3 Portfolio impairment provision (142) 36 9 45 nm Total net charge (948) (138) (167) (305) (68) Loans and advances to customers (US$bn)* 108.1 117.2 13
Slide 24: Performance by geography
Performance by geography Profit before tax US$m 2009 2010 YOY % Hong Kong 1,062 1,103 4 Singapore 714 718 1 Korea 322 388 20 Other APR 770 1 083 1,083 41 India 1,060 1,197 13 MESA 366 841 130 Africa 482 559 16 Americas, UK & Europe 375 233 (38) Total 5,151 6,122 19 24
Slide 25: Outlook
Outlook 2011 has started well Well positioned in growth markets Remain focused on foundations 25
Slide 26: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 26
Slide 27: Strategic intent
Strategic intent Strategic intent The world’s best international Bank Leading the way in Asia, Asia Africa and the Middle East Brand i promise Here for good Values Courageous Responsive International Creative Trustworthy We stand up for We deliver thoughtful, thoughtful We value our diversity We con
Slide 28: Consistent growth
Consistent growth Profit before tax Employee count (US$bn) ((′000s) 000s) 90 6 75 5 60 4 45 3 2 30 1 15 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Jan 01/02 – Dec 31/10 Total Shareholder Return : 235% 28
Slide 29: An evolving business
An evolving business 2010 customer lending SME 32% Mortgage 23% Total 22% 29
Slide 30: India
India US$bn 2.0 10 year profit CAGR 27% 5 year profit CAGR 38% 1.5 1.0 0.5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Profit Income 30
Slide 31: Greater China
Greater China Greater China P&L 4 3 US$ bn 2 1 0 2005 2010 Profit Income Note: Greater China is Hong Kong, Taiwan and mainland China 31
Slide 32: Hong Kong - significant growth potential
Hong Kong - significant growth potential RMB bn trade RMB bn deposit growth in settlement growth Hong Kong since July 2010 McDonald’s Corporation CNY500 CNY315 RMB 200 million (US$75bn) (US$ 48bn) Fixed rate note due 2013 Sole Lead & Arranger 280 August 2010 217 Agricultural Bank of China Limited, H
Slide 33: Singapore
i Standard Q&S Singapore 2S Chartered
Slide 34: Indonesia
Indonesia South East Asia’s largest ges economy y 2010 GDP US$ 688bn Population of 235m, world’s fourth largest g Democracy, with open elections since 2004 34
Slide 35: Technology for efficiency and resilience
Technology for efficiency and resilience Unit cost productivity Income up: 3.0x GTO cost up: 1.9x 15 160 140 10 ome ed % of Inco Indexe 120 5 100 0 80 2004 2005 2006 2007 2008 2009 2010 2006 2006 2008 2009 2010 Technology gy costs Global Trade Finance Operations costs Global FXMM 35
Slide 36: Technology for clients and customers
Technology for clients and customers Applications on both Android & iOS 36
Slide 37: Priorities and challenges
Priorities and challenges Priorities Maintain track record of delivery Deepen relationships with clients and customers Keep focus on the basics of banking Reinforce our brand Challenges Maintained focused execution Regulation World economic outlook Competition 37
Slide 38: Summary and outlook
Summary and outlook Standard Chartered