Slide 1: Half year results 2012
Half year results 2012 Leading the way in Asia, Africa and the Middle East
Slide 2: Forward looking statements
Forward looking statements This document contains or incorporates by reference ‘forward-looking statements’ regarding the belief or expectations of the Company, the Directors and other members of its senior management about the Group’s strategy, businesses, performance and the matters described in t
Slide 3: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Sir John Peace Chairman 3
Slide 4: Performance highlights
Performance highlights Income US$9.5bn 9% Profit before tax US$3.9bn 9% Normalised EPS 116.6c 11% Dividend per share 27.23c 10% Normalised ROE 13.8% 4
Slide 5: 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 5
Slide 6: Performance highlights
Performance highlights Income US$9.5bn 9% Jaws +2% Profit before tax US$3.9bn 9% Normalised EPS 116.6c 11% Normalised ROE 13.8% 6
Slide 7: Group performance
Group performance H1 12 vs H1 12 vs US$m H1 11 H2 11 H1 12 H1 11 % H2 11 % Income 8,764 8,873 9,511 9 7 Net interest income 4,941 5,212 5,483 11 5 Non interest income 3,823 3,661 4,028 5 10 Expenses (4,677) (5,240) (4,963) 6 (5) Operating profit before impairment 4,087 3,633 4,548 11 25 Loan impairm
Slide 8: Diversity a differentiator
Diversity a differentiator Operating income Operating income by product by geography Principal Finance Americas, 2% UK & Europe Corporate Finance 10% 14% CCPL* 11% Hong Kong 18% ALM 5% Africa 8% Wealth Credit and Other 2% 7% Management Capital Markets 3% Commodities Consumer Singapore and Equities 3
Slide 9: Group balance sheet - liabilities
Group balance sheet - liabilities Total deposits* 406 US$bn 380 388 9 346 7 6 Deposit funded franchise 320 5 5 181 193 199 163 154 Net interbank lender and 178 192 189 198 161 US$174bn of liquid assets H1 10 H2 10 H1 11 H2 11 H1 12 CASA** Time deposits Other deposits Minimal refinancing 30 80
Slide 10: Group balance sheet - assets
Group balance sheet - assets Loan portfolio distribution* Americas, Well diversified UK & Europe 18% 18% Hong Kong Africa 2% MESA 7% 82% of Consumer India 4% 19% Singapore Banking portfolio fully or partially secured Other APR 18% 14% Korea Average LTV on 63% of Wholesale Banking Mortgage port
Slide 11: Capital
Capital Capital ratios (%) 18.4 17.9 Expected Basel III impact of 17.6 16.9 100bps on CT1 15.5 4.4 4.0 3.9 3.5 4.3 2.2 2.0 1.9 1.8 2.2 RWA growth of 6% since year end 2011 Tier 1 11.8 11.9 11.8 11.6 13.4 9.0 US$2.3bn of debt and capital issuance in H1 2012 H1 10 H2 10 H1 11 H2 11 H1 12 Core Ti
Slide 12: Consumer Banking performance
Consumer Banking performance H1 12 vs H1 12 vs US$m H1 11 H2 11 H1 12 H1 11 % H2 11 % Income 3,337 3,454 3,515 5 2 Expenses (2,109) (2,496) (2,307) 9 (8) Operating profit before impairment 1,228 958 1,208 (2) 26 Loan impairment (211) (313) (300) 42 (4) Other impairment (4) (8) (9) 125 13 Operating p
Slide 13: Consumer Banking income
Consumer Banking income H1 12 vs H1 11 H1 12 vs H2 11 Mortgages† (13)% (10)% (6)% (1)% (19) bps (10) bps Deposits 14% 9% 3% 3% 10 bps 7 bps Wealth Management (3)% 4% (9)% 5% Change in income Change in footings* Change in margin † Mortgages and Auto Finance * For Mortgages footings are loans to custo
Slide 14: Consumer Banking income continued
Consumer Banking income continued H1 12 vs H1 11 H1 12 vs H2 11 CCPL 13% 2% 13% 7% 7 bps (6) bps SME 7% 0% 1% 3% 13 bps 7 bps Change in income Change in footings* Change in margin * For CCPL footings are loans to customers and for SME loans to customers and deposits combined 14
Slide 15: Consumer Banking loan impairment
Consumer Banking loan impairment H1 11 H2 11 FY 11 H1 12 Mortgages LI/ANR 0.03% 0.01% 0.02% (0.03)% 30dpd/ENR 0.59% 0.67% 0.67% 0.66% Loan book (US$bn) 73 70 70 69 LI (US$m) 10 2 12 (9) SME LI/ANR 0.40% 0.60% 0.52% 0.50% 90dpd/ENR 0.58% 0.57% 0.57% 0.53% Loan book (US$bn) 20 19 19 20 LI (US$m) 38 58
Slide 16: Wholesale Banking performance
Wholesale Banking performance H1 12 vs H1 12 vs US$m H1 11 H2 11 H1 12 H1 11 % H2 11 % Income 5,427 5,419 5,996 10 11 Expenses (2,568) (2,579) (2,656) 3 3 Operating profit before impairment 2,859 2,840 3,340 17 18 Loan impairment (201) (183) (283) 41 55 Other impairment (68) (31) (65) (4) 110 Operat
Slide 17: Diversified income streams
Diversified income streams Total income by product H1 12 vs H1 12 vs US$m H1 11 H2 11 H1 12 H1 11 % H2 11 % Lending & Portfolio Mgt 435 406 447 3 10 Transaction Banking 1,552 1,695 1,842 19 9 Trade 767 828 958 25 16 Cash Mgt & Custody 785 867 884 13 2 Global Markets 3,440 3,318 3,707 8 12 Financial
Slide 18: Wholesale Banking Financial Markets
Wholesale Banking Financial Markets Total income by product H1 12 vs H1 12 vs US$m H1 11 H2 11 H1 12 H1 11 % H2 11 % Foreign Exchange 769 665 743 (3) 12 Rates 450 443 539 20 22 Commodities and Equities 319 284 277 (13) (2) Capital Markets 271 277 290 7 5 Credit and Other 142 68 144 1 112 Total Finan
Slide 19: Wholesale Banking impairment
Wholesale Banking impairment H1 12 vs H1 12 vs US$m H1 11 H2 11 H1 12 H1 11 % H2 11 % Loan impairment (201) (183) (283) 41 55 Other impairment (68) (31) (65) (4) 110 Total impairment (269) (214) (348) 29 63 19
Slide 20: Performance by geography
Performance by geography Income Profit before tax H1 12 vs H1 12 vs US$m H1 11 H1 12 H1 11 % H1 11 H1 12 H1 11 % Hong Kong 1,531 1,688 10 790 870 10 Singapore 1,094 1,162 6 465 546 17 Korea 840 950 13 193 303 57 Other APR 1,748 1,993 14 846 765 (10) India 893 790 (12) 378 311 (18) MESA 1,118 1,125 1
Slide 21: Outlook
Outlook On course to deliver on our full year financial objectives Continue to focus on the basics of banking Accelerating investment to underpin future income momentum Remain in growth mode, taking market share 21
Slide 22: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 22
Slide 23: Consistent delivery
Consistent delivery US$bn Income Profit before tax 10 9 8 CAGR 15% 7 CAGR 20% 6 5 4 3 2 1 0 H1 02 H1 03 H1 04 H1 05 H1 06 H1 07 H1 08 H1 09 H1 10 H1 11 H1 12 23
Slide 24: Macro environment
Macro environment GDP growth % 12 10 China 8 India 6 ASEAN-5 Sub-Saharan Africa 4 US 2 Eurozone 0 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F Source: IMF, July 2012 24
Slide 25: Strategy
Strategy Well positioned in growth markets of Asia, Africa and the Middle East Focus on the basics of banking Accelerating investment in organic growth engines Supporting customers and clients 25
Slide 26: Investment for growth
Investment for growth Cities Branches and outlets 183 106 94 87 37 23 India China Africa As at 30 June 2012 26
Slide 27: Technology channels
Technology channels Straight2Bank Cash and Trade Authorisation BPO Oracle integration smart phone app transactions Straight2Bank Breeze Places Breeze Trade for SMEs Women in Business Good Life Talking ATMs Resource Centre 2010 2011 H1 12 Breeze Mobile Breeze Living Breeze Home Straight2Bank Trade Vi
Slide 28: Customer service
Customer service Consumer Banking 2009 H1 12 Net Promoter 25 48* 92% Score Complaints per '000 accounts 0.83 0.40 (52)% * As at March 2012 28
Slide 29: Technology-driven productivity
Technology-driven productivity Trade operations productivity '000s of transactions per full time employee* 4 3.71 3.49 3 2.85 2.89 2.74 2 2008 2009 2010 2011 2012F * Global trade finance operations 29
Slide 30: Trade
Trade Revenue US$m 1,000 958 800 600 400 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 30
Slide 31: Americas, UK & Europe
Americas, UK & Europe Income US$m BP Capital Markets PLC 1,200 RMB700 million 1.70% Fixed Rate Notes due 2014 1,000 Sole Coordinator Joint Bookrunner& CAGR 28% Lead Manager 800 September 2011 600 Jaguar Land Rover Plc. 400 GBP500 million GBP500m 8.25% Notes due 2020 United Kingdom 200 Joint Bookrunn
Slide 32: China and Africa trade
China and Africa trade Growth in trade between China and Sub-Saharan Africa Total trade Standard Chartered presence 2001 2011 US$bn 12 10 23 cities 8 14 countries 6 4 * 20x 2 2011 vs 2001 0 Kenya Ghana Nigeria Sources: IMF DOTS and MOFCOM * Growth in US$ value of total trade 32
Slide 33: China strategy
China strategy Income growth H1 12 vs H1 11 Total income 22% Consumer Banking SME 18% Total 15% Wholesale Banking Network* 56% Total 25% * Income reported in other countries 33
Slide 34: Risk
Risk Group loan impairment bps of loans and advances to customers 140 120 100 80 60 40 20 0 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 34
Slide 35: Challenges
Standard Chartered &Q Challenges — 5 Oo Ae » 14Ju Smee, «=f af 5088 A NCIAL TIME __THE BUSINESS T| IMES Wee 9 sae Eee calls for changes in Business confidence declines gemt o>) _Taskfore = a en fre z n et stimulus no panacea Re & or in vay . ressure a slowdown- Asia under p | wn-paper >\{ AJ, wy = t
Slide 36: Here for good
Standard @&@ Chartered & Here for good What good can a bank do? standardchartered.com/answers
Slide 37: Summary
Summary Standard Ss Chartered