Standard Chartered Plc · LSE:STAN
Standard Chartered — Non-Deal Roadshow (September 2024)
51 slides from Standard Chartered's roadshow presentation, Sep 13, 2024
Slide 1: China Investor Event
CONFIDENTIAL China Investor Event 13 September 2024
Slide 2: Agenda
CONFIDENTIAL Agenda Time Agenda Participants 08.00 Registration and tea/coffee All 08.15 Welcome remarks Bill Winters, Group Chief Executive 08.35 Standard Chartered investment case Manus Costello, Global Head, Investor Relations 08.45 Supply chain shifts to Global South - ASEAN Michael Spiegel, Glo
Slide 3: Standard Chartered Investment Case
CONFIDENTIAL Standard Chartered Investment Case Manus Costello Global Head, Investor Relations 3
Slide 4: The history of Standard Chartered
CONFIDENTIAL The history of Standard Chartered 4
Slide 5: Group overview
CONFIDENTIAL Group overview We are a leading international cross-border bank • Standard Chartered is a cross-border corporate and investment bank, and a leading wealth manager for Affluent clients 53 ~83k >12m Markets employees clients • The bank has a unique global network, spanning 53 of the world
Slide 6: Presence in 53 markets
CONFIDENTIAL Presence in 53 markets For over 170 years, we have used the power of our network to maximise opportunities for people and businesses who trade, operate, or invest across our markets. Our diverse experience, capabilities and culture set us apart Asia We have a long-standing and deep fran
Slide 7: Group financial snapshot: H1'24
CONFIDENTIAL Group financial snapshot: H1’24 P&L items Balance sheet items Operating Cost-to- Income-to-cost L&A to Customer Income RoTE CET1 ratio LCR Leverage ratio Profit income jaws customers deposits $10.0bn $4.0bn 57% Positive 8% 14.0% $276bn S468bn 14.6% 148% 4.8% Income by segments Income by
Slide 8: Strategic progression
CONFIDENTIAL Strategic progression Turnaround Transformation Growth phase 10.1% 6.3% 6.5% 7.7% RoE / RoTE1 3.9% 4.7% 3.2% (%) -0.4% 0.3% 17.4 15.8 15.1 14.8 14.1 14.2 14.3 14.1 13.6 Operating income ($bn) 10.1 10.3 11.0 9.2 9.4 9.7 9.7 9.4 9.9 Operating expenses (ex UK bank levy) ($bn) 4.0 2.4 2.2 C
Slide 9: Performance has been strong in H1'24
CONFIDENTIAL Performance has been strong in H1’24 Income Expenses Continued positive momentum in Q2’24 • Income up 13% YoY at ccy • Fit for Growth programme execution in progress − NII up 5%, further benefitting from short-term Strong performance in Wealth • Strong cost discipline; expenses up 5% Yo
Slide 10: Financial framework 2024-2026
CONFIDENTIAL Financial framework 2024-2026 2024-2026 financial framework Operating income to Return at least 5bn increase above 7% in Expenses Positive jaws CET1 ratio capital to 2024; <$12bn in 2026 every year 13-14% shareholders 5-7% for 2024-2026 RoTE increasing steadily from 10%, targeting 12% i
Slide 11: Structural drivers
CONFIDENTIAL Structural drivers 11
Slide 12: Structural changes in Asia offer opportunities for growth
CONFIDENTIAL Structural changes in Asia offer opportunities for growth • Continuation of capital markets opening China opening • China is underweight outbound investment • Global assets allocations underweight China Chinese Corporates & Institutions Outbound Flows • Intra-Asia connectivity driven by
Slide 13: Capitalise on China opening
CONFIDENTIAL Capitalise on China opening Macro drivers We are focusing on driving onshore-offshore connectivity Structural shifts in China are driving significant opportunity • Offshore income: 2x onshore, growing 42% YoY in FY’23, and higher returning Rising global asset reallocation to China Incre
Slide 14: Leverage supply chain and trade corridor evolutions
CONFIDENTIAL Leverage supply chain and trade corridor evolutions Macro drivers We are well positioned to seize the opportunity… There is a supply chain/trade flow shift underway with China, ASEAN, South Asia and Middle East as epicentres • Only international bank in all 10 ASEAN markets Estimated ch
Slide 15: Drive affluent growth
CONFIDENTIAL Drive affluent growth Macro drivers We are well positioned to seize the opportunity… Wealth assets in Asia and China are expected to grow faster than rest of the world … • Banking with ~2.3m affluent clients across 14 markets Financial Wealth Growth by Region1 China Household Wealth • 4
Slide 16: Supply Chain Shifts to Global South-ASEAN
CONFIDENTIAL Supply Chain Shifts to Global South-ASEAN Michael Spiegel Global Head, Transaction Banking 16
Slide 17: Key messages
CONFIDENTIAL Key messages ASEAN as a large, Transaction Banking is Well positioned to fast growing trade bloc aligned to the shifting facilitate and benefit is benefitting from the trends in the region, from the rising use of broader reconfiguration capturing opportunities RMB as a payment and of gl
Slide 18: Accelerate growth in ASEAN
CONFIDENTIAL Accelerate growth in ASEAN Macro drivers We are favourably positioned to capture the growth… ASEAN to benefit from supply chain shifts… Top 5 trading partners of key ASEAN-6 markets1 Only international bank Sovereign rating advisor in in all 10 ASEAN markets Indonesia, Philippines and V
Slide 19: Capture supply chain shifts
CONFIDENTIAL Capture supply chain shifts Macro drivers Ready to capture the opportunity with our footprint and capabilities… There is a supply chain/trade flow shift underway with China and ASEAN as Asia’s epicentres… In 21 markets across Asia; only international bank in all 10 ASEAN markets Estimat
Slide 20: Continuing to grow Transaction Banking capturing flows into ASEAN
CONFIDENTIAL Continuing to grow Transaction Banking capturing flows into ASEAN and monetising fee opportunities ASEAN Inbound income Fee Growth & TBFX Cross Sell Cash & Trade ASEAN Inbound Income Growth of 19% CAGR (2019 to 2023) Diversified Revenue Base, with Inbound fee income growing1 by 6%... •
Slide 21: Significance and strength of the network to CIB
CONFIDENTIAL Significance and strength of the network to CIB CIB cross-border income as a % of total CIB income CAGR2 • Cross-border (network) income is driving faster top line growth in CIB 11.2 11.4 +7% Total CIB income ($bn) 9.6 − Now 62%1 of total CIB income, up from 50% in 2019 8.2 8.0 7.9 61%
Slide 22: Regional Treasury Centers allow clients to monitor and control liquidity flows
CONFIDENTIAL Regional Treasury Centers allow clients to monitor and control liquidity flows across global hubs China domiciled corporates establishing offshore RTCs Case Study – Powerchina • Facilitate international growth • Navigate regional complexities • Support RMB internationalization Benefits
Slide 23: Market leading RMB capabilities strengthen our competitive position
CONFIDENTIAL Market leading RMB capabilities strengthen our competitive position for China-ASEAN flows RMB internationalisation offers significant growth potential Extensive and market leading capabilities in RMB Significant progress1 made in recent years, gaining share in global stage Global paymen
Slide 24: Key messages
CONFIDENTIAL Key messages ASEAN as a large, Transaction Banking is Well positioned to fast growing trade bloc aligned to the shifting facilitate and benefit is benefitting from the trends in the region, from the rising use of broader reconfiguration capturing opportunities RMB as a payment and of gl
Slide 25: ASEAN Overview
CONFIDENTIAL ASEAN Overview Rino (Donny) Donosepoetro Cluster CEO, Indonesia and ASEAN Markets 25
Slide 26: ASEAN is a driver of global growth
CONFIDENTIAL ASEAN is a driver of global growth ASEAN is a significant growing economic powerhouse ASEAN initiatives Association of South-East Regional Comprehensive Economic Partnership Asian Nations $4.5tn • FTA 10 ASEAN markets +5 Expected 2030 GDP from ~$3.3tn1 • Representing 30% of global GDP F
Slide 27: The only international bank in all 10 ASEAN markets
CONFIDENTIAL The only international bank in all 10 ASEAN markets 01. Thailand – 130 years 06. Philippines – 151 years, oldest foreign bank • Leading international RMB bank • Advisor for Sovereign Rating since 2010 • Preferred Partner for Thailand Board of Investment • Preferred Partner for Board of
Slide 28: Go-to bank for trade and investments; one-third is cross-border inbound
CONFIDENTIAL Go-to bank for trade and investments; one-third is cross-border inbound Income (FY’23, YoY %) Europe to ASEAN GCNA to ASEAN $0.2bn; +33% YoY $0.4bn; +47% YoY China: $0.2bn; +57% YoY ASEAN inbound income $1.3bn; +34% YoY Intra-ASEAN $0.2bn South Asia to ASEAN US to ASEAN +17% YoY $0.1bn;
Slide 29: Industry leading role in Just Energy Transition Partnership
CONFIDENTIAL Industry leading role in Just Energy Transition Partnership Just Energy Transition Partnership (JETP) Opportunities Key partner for Governments of Indonesia and Vietnam • International cooperation on country specific efforts to reduce energy sector emissions and • Leading negotiation an
Slide 30: Key messages
CONFIDENTIAL Key messages ASEAN is poised to Standard Chartered We leverage our unique become one of the has a deep-rooted footprints to help our largest trading blocs in presence and the go-to clients with their cross- the world and the bank in the region. border trade and destination of choice inv
Slide 31: Indonesia, Vietnam, Malaysia and Singapore
CONFIDENTIAL Indonesia, Vietnam, Malaysia and Singapore 31
Slide 32: Indonesia
CONFIDENTIAL Indonesia 283m population ~5% $82bn $23bn Median age 30 years1 10-year GDP CAGR2 Digital economy in Indonesia FDI average for last Largest economy in ASEAN with estimated to grow to $360bn by 3 years4 strong macro fundamentals ands 20303 substantial demographic bonus 161 years Top custo
Slide 33: Vietnam
CONFIDENTIAL Vietnam High growth market for both high tech and labour-intensive 100m population ~6% $17bn manufacturing; large consumer With median age ~35 years1 10-year GDP CAGR2 FDI average for last 3 years2 population which is rapidly getting Strong recovery since Covid-19 wealthier Ideally plac
Slide 34: Malaysia
CONFIDENTIAL Malaysia A large and diversified economy and 6th ~4% $44bn 149 years Presence in Malaysia robust infrastructure largest economy in 10-year GDP CAGR2 Foreign investments ASEAN1 Strong recovery since approved in 20234 Covid-19 Malaysia’s first and oldest bank with unparalleled global netw
Slide 35: Singapore
CONFIDENTIAL Singapore Oldest SRFB bank (Standard The only bank with unique Well positioned to leverage Chartered Singapore “Enhanced Significantly at 165 years old) Rooted Foreign Bank” license Singapore’s position as global financial hub and ASEAN super-connector Newest $143bn FDI bank (Trust Bank
Slide 36: Going against the trend
CONFIDENTIAL Going against the trend Edward Lee Chief Economist and Head of FX, ASEAN and South Asia 36
Slide 37: ASEAN is open for trade
CONFIDENTIAL ASEAN is open for trade 37
Slide 38: Global trade has peaked; regionalisation increasing
CONFIDENTIAL Global trade has peaked; regionalisation increasing Global trade appears to have stagnated since the Global Financial Crisis South-south trade share is rising at the expense of north-north trade % of global GDP % of total exports 60 North-North North-South South-North South-South 100% 5
Slide 39: Growing intra-regional trade
CONFIDENTIAL Growing intra-regional trade EM Asia saw the sharpest increase in intra-regional trade Exports on some trade routes have more than doubled over the last 20 years % of total exports % of total exports 25 30 2000 2023 2000 2023 25 20 20 15 15 10 10 5 5 0 0 SSA-EM Asia SSA-MENAP EM Europe-
Slide 40: Medium-term look at the deterioration in US-China trade
CONFIDENTIAL Medium-term look at the deterioration in US-China trade US imports from China have fallen with ASEAN-6 benefiting ASEAN grows as intermediary Share of total US imports (%, 12mma) Share of total China imports (%, 12mma) 16 25 ASEAN-6 14 20 China 12 10 15 8 US 10 6 ASEAN-6 4 5 2 0 0 Dec-9
Slide 41: Vietnam has been a standout beneficiary
CONFIDENTIAL Vietnam has been a standout beneficiary ASEAN exports more to the US China exports more to ASEAN Share of total US imports (%, 12mma) Share of total China exports (%, 12mma) 4.5 4.0 Indonesia Malaysia Philippines Indonesia Malaysia Philippines Singapore Thailand Vietnam Singapore Thaila
Slide 42: Still a lot of room to grow
CONFIDENTIAL Still a lot of room to grow ASEAN gradually increases its share of global exports ASEAN’s importance in global supply chain is rising very slowly % of global exports % of global intermediate manufactured exports (excluding coke and petroleum products) 16% 20% 15% China 18% 14% China 16%
Slide 43: ASEAN is open for investments
CONFIDENTIAL ASEAN is open for investments 43
Slide 44: A sustained US-China trade friction is now an accepted reality
CONFIDENTIAL A sustained US-China trade friction is now an accepted reality Are you facing increasing difficulties due to geopolitical problems? % of respondents 35% 30% 25% 20% 15% 10% 5% 0% Yes, US and Western clients Yes, more tariff and non-tariff Yes, China clients asking us to Yes, more tariff
Slide 45: ASEAN is open for business
CONFIDENTIAL ASEAN is open for business ASEAN attracts an increasing share of global FDI FDI inflows to ASEAN (% of global FDI) Global FDI (USD bn, 3Y MA) 18% 2,500 ASEAN Global FDI 16% 2,000 14% 12% 1,500 10% 8% 1,000 6% 4% 500 2% 0% 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 200
Slide 46: FDI source is well-diversified
CONFIDENTIAL FDI source is well-diversified Increasing FDI from Northeast Asia Increasing FDI interest in manufacturing Average FDI per annum (USD bn) % of total FDI into ASEAN 2012-2015 average 2016-2019 average 2021-2023 average 2012-2015 average 2016-2019 average 2021-2023 average 50 35% 45 30% 4
Slide 47: Most ASEAN countries are receiving more FDI than pre-COVID levels
CONFIDENTIAL Most ASEAN countries are receiving more FDI than pre-COVID levels FDI interest in ASEAN rose post-COVID FDI inflows to ASEAN (USD bn, average per annum) 2012-2015 average 2016-2019 average 2021-2023 average 40 2012-2015 average: 62bn 2016-2019 average: 81bn 35 2021-2023 average: 143bn 3
Slide 48: Misconceptions
CONFIDENTIAL Misconceptions 48
Slide 49: ASEAN is not an 'island' and not a customs union
CONFIDENTIAL ASEAN is not an ‘island’ and not a customs union ASEAN is the most open region in the world % value-add driven by domestic vs external demand Domestic External 100% 90% 18.3% 24.4% 80% 39.7% 43.8% 50.8% 70% 62.5% 60% 50% 40% 81.7% 75.6% 30% 60.3% 56.2% 49.2% 20% 37.5% 10% 0% ID PH MY TH
Slide 50: Select technical and abbreviated terms
CONFIDENTIAL Select technical and abbreviated terms Term Definition Term Definition ADB Asian Development Bank ODI Outbound Direct Investments ASEAN Association of Southeast Asian Nations PBT Profit Before Tax API Application Programming Interface QoQ Quarter-on-quarter AUM Assets under management Q
Slide 51: Important notice
CONFIDENTIAL Important notice Forward-looking statements This document may contain ‘forward-looking statements’ that are based upon current expectations or beliefs, as well as statements formulated with assumptions about future events. These forward-looking statements can be identified by the fact t
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