Standard Chartered Plc · LSE:STAN

Standard Chartered — Investor Day (2013)

29 slides from Standard Chartered's investor day presentation, 2013

  1. Slide 1: Leading the way in Asia, Africa and the Middle East

    Leading the way in Asia, Africa and the Middle East Mike Rees Group Executive Director and CEO Wholesale Banking

  2. Slide 2: Key messages

    Key messages  We continue to believe in the potential of our markets and our competitive advantage but we are facing headwinds  Fundamental strategy is unchanged and is the foundation for everything we do  Deep long term client relationships remain at the heart of that strategy  We are sharpenin

  3. Slide 3: What we have said in the past...

    What we have said in the past... Our strategy  Deep ‘core bank’ client relationships  International network, local scale Strategic  Balance sheet management Value added Key enablers  Infrastructure Transactional  Values and culture  Collective ambition Lending

  4. Slide 4: Our product suite has been built to support our clients' needs

    Our product suite has been built to support our clients’ needs SCB product capabilities within footprint  We remain a core commerical 2002 2006 2010 2013 bank focused on Cash, Trade Trade Finance and FX Cash Management  We have developed a complete FX and diverse product suite combined with a uniq

  5. Slide 5: Financial performance

    Financial performance CAGR Client income: +8% Operating profit: +11% YoY Client income: +6% CAGR Total income: +2% Client income: +30% Operating profit: +7% Operating profit: +30% CAGR Client income: +19% Operating profit: +22% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 HY 13 Client inco

  6. Slide 6: Potential for growth in our markets...

    Potential for growth in our markets… 2012 – 2018 forecast GDP and trade growth (CAGR%) China Taiwan 7.2% 6.9% 4.1% 4.9% UAE GDP Trade GDP Trade Hong Kong 9.2% 7.9% 3.6% 4.2% GDP Trade GDP Trade Nigeria Malaysia 6.8% 4.3% 5.1% 5.4% GDP Trade GDP Trade India Singapore 7.7% 6.0% 6.0% Indonesia 3.8% 6.0

  7. Slide 7: ...enhanced by the potential for financial deepening

    ...enhanced by the potential for financial deepening Financial depth in key Global markets* 464 453 Developed 61 average = 404 116 369 334 59 133 126 107 120 225 47 118 152 148 148 130 259 42 Footprint 222 132 60 58 average = 162 190 56 70 48 109 54 35 46 40 34 39 42 US Japan W EU Other dev. China M

  8. Slide 8: Leading the way with our clients for and in Asia, Africa and the Middle East

    Leading the way with our clients for and in Asia, Africa and the Middle East Our Brand Promise Here for good The way we do business Deep client Wholesale Banking strategy relationships; a trusted advisor  Deep ‘core bank’ client relationships International perspective, local knowledge  Internation

  9. Slide 9: We have seen continued success in key client initiatives

    We have seen continued success in key client initiatives Next 500 clients Managing suboptimal returns H1 2011 – H1 2013 FY 2012 – Q3 2013 Continued income growth Reinvesting RWAs to drive returns 22% 24bps 18bps 12bps H1 11 H1 12 H1 13 Mar-13 Jun-13 Sep-13 Uplift in RoRWA since FY 2012  Deeper rela

  10. Slide 10: We can do more to deepen client relationships

    We can do more to deepen client relationships CAGR US$10m +10% Revenue per Client Group CAGR +15% 80% revenues from 23% clients CAGR +20% US$1m 2012: 80% revenues from 16% clients Number of client groups

  11. Slide 11: Sharpening our focus with clients

    Sharpening our focus with clients Improving client returns  Deepening and broadening of client relationships RoRWA uplift from product depth 6.5% 6.9%  Continued management of sub- 4.9% optimal client returns  Improved resource allocation <3 3-5 >5 Number of products per client Higher returns fro

  12. Slide 12: Intermediating global trade to capture the full commercial payments opportunity

    Intermediating global trade to capture the full commercial payments opportunity  We are a leading trade finance provider Our footprint is at the centre of the for our footprint global manufacturing-supply chain  Our footprint is at the centre of the global Europe manufacturing-supply chain China 

  13. Slide 13: We are market leaders in the offshore RMB market with a strong competitive advantage

    We are market leaders in the offshore RMB market with a strong competitive advantage RMB is already a significant part of Market leading offshore our business RMB position Wholesale Banking  Leading share in offshore RMB RMB client income (US$m) deposits CAGR 56% 471  >10% market share in offshore

  14. Slide 14: Technology and innovation

    Technology and innovation  Continue to upgrade our electronic client interfaces, e.g. Straight2Bank  Step up investment in Straight-Through-Processing and automation  Learning to create more value from our data

  15. Slide 15: Challenging environment

    Challenging environment  Client confidence − Volatility and uncertainty  Political environment  Regulation − Prudential regulation − Conduct of business  Competition

  16. Slide 16: Financial outcome

    Financial outcome Wholesale Banking operating profit (US$bn) CAGR Operating profit: +11% 5.8 CAGR 5.2 Operating profit: +30% 3.0 CAGR Operating profit: +22% 1.4 0.8 ? 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2017 Note: 2012 operating profit adjusted for US settlement

  17. Slide 17: Leading the way in Asia, Africa and the Middle East

    Leading the way in Asia, Africa and the Middle East Saleem Razvi CFO, Wholesale Banking

  18. Slide 18: Key messages

    Key messages  Deep client relationships and diverse income streams are the foundations of our business  We face headwinds but the underlying drivers of our performance remain strong underpinned by an unchanged strategy  Our continued build of scalable platforms enables dynamic cost management and

  19. Slide 19: We continue to deepen client relationships

    We continue to deepen client relationships Client centric business Asian transaction banking market penetration  Client focus lies at the heart of our 4.3% 2.8% 1.3% strategy 32% 34% 30% 29% 29% 27% 28% 28% 26%  Increased share of primary and secondary 11% 12% 13% 7% 8% 9% 13% 15% 16% banker statu

  20. Slide 20: Our fully developed product suite is a key enabler for deeper client relationships

    Our fully developed product suite is a key enabler for deeper client relationships Product RoRWA* Deepening from Deepening from Commercial Banking Strategic Strategic 7.0% Time Technoplast CLP Wind Farms Value added 10.6% Transactional 10.7% Lending 2.1% * Return on risk weighted assets (RoRWA) defi

  21. Slide 21: Our income streams remain well diversified

    Our income streams remain well diversified Income by client segment Financial Institutions Global Corporates 28% 32% Commodity Traders & Agriculture 8% Local Corporates 32% Income by product group Income by geography Lending Strategic 9% Americas,UK and Hong Kong 24% Europe 19% 17% Africa Singapore

  22. Slide 22: Commercial Banking pricing compression has been offset by continued volume growth

    Commercial Banking pricing compression has been offset by continued volume growth Trade finance Cash management Cash FX Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

  23. Slide 23: Corporate Finance income growth is sustainable

    Corporate Finance income growth is sustainable Corporate Finance income progression Corporate Finance (US$bn)  Business is well diversified by product and size of transactions CAGR  Income is based on sustainable annuity 31% 2.2 1.9 YoY streams 1.7 25% 1.3  Corporate Finance is a catalyst for 1.0

  24. Slide 24: Our Financial Markets business is client focused with stable income streams

    Our Financial Markets business is client focused with stable income streams Client driven income streams H1 2013 Trading assets / Total assets (%) FM client income as % FM total income 38 81 H1 2013 27 77 76 77 78 23 69 16 16 18 39% 9 10 Financial 4 4 61% Institutions Corporates Chartered Bank G Ban

  25. Slide 25: Our balance sheet flexibility is a key strength

    Our balance sheet flexibility is a key strength Wholesale Banking Loans and Advances to Continued distribution strength (%) customers with tenor less than 1 year (%) Hold level of total originated WB loans 67 67 65 64 65 63 38 62 29 26 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 2011 2012 H1 13 Trade

  26. Slide 26: We continue to build scalable platforms...

    We continue to build scalable platforms... Trade Finance Foreign Exchange indexed operations cost vs. volumes indexed operations cost vs. volumes 152 124 135 125 108 100 102 105 100 98 101 99 2010 2011 2012 YTD 2013* 2011 2012 YTD 2013* Business volumes Operations cost Business volumes Operations co

  27. Slide 27: ...which underpin our ability to manage costs dynamically and sustain investment

    ...which underpin our ability to manage costs dynamically and sustain investment Wholesale Banking expense jaws Strong expense discipline… YoY%  Scalable platforms 2% H1 13  Organisational efficiency 0%  Automation 8% 2012 5%  Tactical measures 9% 2011 2% …supporting continued investment 2010 7%

  28. Slide 28: Sharpening our focus on returns

    Sharpening our focus on returns Returns based on strong Deepening client relationships foundations… Moving to full client relationships generates 3.8x more income  Deepening client relationships Income 3.8x  Scalability and operating leverage …and enhanced by specific initiatives Financing relatio

  29. Slide 29: Key messages

    Key messages  Deep client relationships and diverse income streams are the foundations of our business  We face headwinds but the underlying drivers of our performance remain strong underpinned by an unchanged strategy  Our continued build of scalable platforms enables dynamic cost management and

Standard Chartered — Investor Day (2013) on 6ix