Standard Chartered Plc · LSE:STAN
Standard Chartered — Investor Day (June 2022)
28 slides from Standard Chartered's investor day presentation, Jun 14, 2022
Slide 1: Financial Markets Investor Event
CONFIDENTIAL Financial Markets Investor Event 14 June 2022 | 09.00 to 10.00 BST 14/06/2022
Slide 2: Contents
CONFIDENTIAL Contents Simon Cooper, CEO, Corporate, Commercial & Institutional Banking, and CEO, Europe & Americas • Introduction 4 • Concluding remarks 18 Roberto Hoornweg, Global Head, Financial Markets • Overview of Financial Markets 6 Molly Duffy, Financial Markets Head, Europe & Americas • Clie
Slide 3: Introduction
CONFIDENTIAL Introduction 3
Slide 4: Key Messages
CONFIDENTIAL Key Messages 1 2 3 An integrated FM FM delivered on the Accelerating the O2D business, driving commitments and strategy through the improved returns, targets set out in 2019 combination of FM and leveraging the network Corporate Finance and a significant contributor to CCIB ~160bps impr
Slide 5: Financial Markets Overview
CONFIDENTIAL Financial Markets Overview 5
Slide 6: Performance Highlights: 2018 to 2021
CONFIDENTIAL Performance Highlights: 2018 to 2021 7% CAGR +25% CAGR 4.9 (2018 - 20) 4.9 1.6 4.5 3.9 1.1 1.3 1.1 (1)% Income 1.1 (ex-DVA, $bn) 3.4 3.8 2.9 15% 2018 2019 2020 2021 1Q’21 1Q’22 Corporate Finance (CF) FM ex-CF Total Financial Markets 5% CAGR $(4.6)bn RWA 72.3 78.2 84.0 84.6 84.6 80.0 ($b
Slide 7: Scorecard: Achievements vs commitments made in 2019
CONFIDENTIAL Scorecard: Achievements vs commitments made in 2019 2019 Commitments Achievements (2018 to 2021) • Income growth > CCIB average • Income +7% CAGR vs CCIB +1% Improve • Expenses +2% CAGR • Expenses growth < inflation returns • RoTE > Group target • RoTE 11.4% in 2021 vs Group Target 10%
Slide 8: ~2/3rds of FM income is flow related, growing at 5% CAGR 2018 to 2021
CONFIDENTIAL ~2/3rds of FM income is flow related, growing at 5% CAGR 2018 to 2021 FM Income (ex-DVA, $bn) CAGR Definition Characteristics Products (2018 - 21) • Issuance related • Deal Contingents • M&A • Loan or Bond 4.9 4.9 7% Duration, Event • Long dated Issuance & MTM Driven 4.4 Episodic • Size
Slide 9: Combining Financial Markets and Corporate Finance drove O2D and improved Returns
CONFIDENTIAL Combining Financial Markets and Corporate Finance drove O2D and improved Returns 2021 Performance (post combination) • Combining the FM Distribution and CF Origination teams increased origination and distribution volumes • GCM1 Income +18% YoY Benefits of integrating CF into FM • The bu
Slide 10: FM income grew faster than the industry and increased market share by 1.4%pts
CONFIDENTIAL FM income grew faster than the industry and increased market share by 1.4%pts Industry Revenue – Coalition Index of Banks (Global Revenue)1 (FICC – Fixed Income, Credit and Commodities, DCM (Debt Capital Markets) and Securities Services) STAN grew faster than industry… FM revenues – 201
Slide 11: Income from Financial Institution clients is 44% of total FM, up 5%pts since 2018
CONFIDENTIAL Income from Financial Institution clients is 44% of total FM, up 5%pts since 2018 Change (2018 - 21) 57% 56% (5)%pts 61% 60% FM Income (ex-DVA, % of total) 40% 43% 44% 5%pts 39% 2018 2019 2020 2021 Financial Institutions Corporates 11 Footnotes on pages 26; Glossary on page 27
Slide 12: A bold vision with a strategy focusing on Clients, Products and Geographies
CONFIDENTIAL A bold vision with a strategy focusing on Clients, Products and Geographies … with strategic priorities focusing on Clients, A bold vision for the FM business … Products and Geographies … Clients: • A world class emerging markets franchise in our Increasing our reach, relevance and wall
Slide 13: Strategic priorities: Clients
CONFIDENTIAL Strategic priorities: Clients Tailored Investor Cross Sell Franchise • Further grow number of • Build scalable solutions products sold to Clients • Enhance coverage and Priorities • Enable expansion of TBFX 1 operating model and Custody FX business • Digitally enable TB clients to • Str
Slide 14: Strategic priorities: Products
CONFIDENTIAL Strategic priorities: Products Originate to Securities Services Digital and Tactical ESG Opportunity Distribute and Prime Product Expansion • Expand Credit capabilities • Grow emissions trading and • Develop capabilities starting • Acquisition of new clients via with crypto currency tra
Slide 15: Strategic priorities: Geographies
CONFIDENTIAL Strategic priorities: Geographies Strengthen China and India EM Footprint • Recently opened branch in • China: Strengthen onshore Saudi Arabia presence and offering to • Obtained preliminary serve onshore Corporates, approval for banking license Priorities local FIs in Egypt • India: Fo
Slide 16: FM is well positioned for structural changes whilst uncertainties remain
CONFIDENTIAL FM is well positioned for structural changes whilst uncertainties remain China +• The “world” is generally under indexed to China (duration, FX reserves) opening +• Increase share of wallet with Bond connect, FX for custody, China Securities company (subject to regulatory approval) ?• C
Slide 17: Conclusion
CONFIDENTIAL Conclusion 17
Slide 18: In conclusion
CONFIDENTIAL In conclusion • Record performance in 1Q’22 Foundations • A world class team in place leveraging our network and delivering on strategy and momentum are strong • Combination of CF and FM has created significant growth opportunities • Structural market changes are supportive of growth •
Slide 19: CONFIDENTIAL
CONFIDENTIAL
Slide 20: Appendix
CONFIDENTIAL Appendix • Financial Markets Overview • Income split by Product and Geography 20
Slide 21: Financial Markets Overview
CONFIDENTIAL Financial Markets Overview • Record 1Q’22 income +25% YoY Strong growth • $3bn RWA optimisation in 1Q’22 with improving • Income CAGR1 of 7% since 2018 2024 Targets returns • Income RoRWA 5.8%, up 32bps since 2018 • RoTE +480bps 2018 to 11.4% in 2021 ~160bps • Stable and diversified inc
Slide 22: Financial Markets income breakdown: Product and Geography
CONFIDENTIAL Financial Markets income breakdown: Product and Geography Income breakdown by product Income breakdown by region Financing & 12% 8% Europe & 17% 21% Securities Services 10% Americas Structured 13% Finance Africa & 22% Middle East 21% FM Income 37% Credit 31% (ex-DVA, % of Markets total)
Slide 23: Speaker biographies
CONFIDENTIAL Speaker biographies 23
Slide 24: Speaker biographies
CONFIDENTIAL Speaker biographies Simon joined the Group as CEO, Corporate & Institutional Banking in April 2016 and has been a member of the Group Management Team since. He assumed additional responsibility for Commercial Banking in March 2018 and Europe & Americas in September 2020. Simon is based
Slide 25: Speaker biographies
CONFIDENTIAL Speaker biographies Geoff Kot is Managing Director and Global Head of FM Electronic Trading and Platforms for Standard Chartered Bank (Singapore) Limited, based in Singapore He is responsible for developing the electronic trading capabilities and digital platforms for the Financial Mark
Slide 26: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page Explanatory note or definition 1. Income return on risk weighted assets (IRoRWA) % are based upon average RWA balances 6 1. Average number of products sold per client entity 7 2. Credit Solution: Includ
Slide 27: Selected technical and abbreviated terms
CONFIDENTIAL Selected technical and abbreviated terms Term Definition Term Definition bps Basis points n.a. Not applicable A performance measure on a constant currency basis is presented such that comparative periods Network Corporate and institutional banking services offered to clients utilising t
Slide 28: Important Notice
CONFIDENTIAL Important Notice This document contains or incorporates by reference “forward-looking statements” regarding the belief or current expectations of Standard Chartered PLC (the “Company”), the board of the Company (the “Directors”) and other members of its senior management about the strat