Slide 1: 3Q'21 Results Presentation
CONFIDENTIAL 3Q’21 Results Presentation 2 November 2021
Slide 2: We continue to make good progress on our 2021 objectives
CONFIDENTIAL We continue to make good progress on our 2021 objectives… … whilst continuing to execute our strategy and build for the long term → Introduction • We delivered a return to top line growth in 3Q’21 Income Expenses o Total income up 5% on a constant currency basis and excluding normalisat
Slide 3: The Group returned to top line growth in 3Q'21
CONFIDENTIAL The Group returned to top line growth in 3Q’21… … with expenses, credit quality and capital well managed ($bn) 3Q’20 3Q’21 YoY1 Ccy1 • Continued business momentum, particularly in Introduction Net interest income 1.6 1.7 7% 6% Transaction Banking Trade, Financial Markets and → Income Ot
Slide 4: Income up 6% YoY as asset growth and FM offset headwinds
CONFIDENTIAL 3Q’21 up 6% YoY as asset growth and FM more than offset reducing headwinds… …positive momentum QoQ also driven by FM and asset growth % variance excluding normalisation adjustments: x% % variance x% • IFRS9 interest income adjustment in 2Q’21 & 3Q’211Introduction Income 3Q’21 vs 3Q’20 (
Slide 5: Normalised NIM was down 1bp QoQ
CONFIDENTIAL Normalised NIM1 was down 1bp QoQ… … NII benefited from IFRS9 adjustment, with asset growth offset by NIM decline Introduction Gross yield 246 185 207 199 185 186 184 → Income • NII2 up 7% YoY, broadly flat excluding $96m (bps) Rate paid Expenses 123 68 92 82 69 69 66 (bps) Risk IFRS9 in
Slide 6: 3Q'21 expenses are 3% higher YoY on a constant currency basis
CONFIDENTIAL 3Q’21 expenses are 3% higher YoY on a constant currency basis… … Strategic investment spend was up ~50% YoY 80 • Expenses 5% higher YoY; 3% ccy Introduction 67 o Performance-related pay (PRP) has Income Cost-to- 70 70 69 income ratio1 63 increased after abnormally low 2020 → Expenses 63
Slide 7: We expect credit impairment to remain at low levels in 4Q'21
CONFIDENTIAL We expect credit impairment to remain at low levels in 4Q’21… …but an uneven recovery means we remain vigilant Introduction Credit impairment ($m) / Loan-loss rate Income • Credit impairment $107m, down $246m Expenses → Risk Loan-loss rate1 74bps 3bps o Stage 1 & 2 $30m Capital Conclusi
Slide 8: RWA down in 3Q'21; CET1 above 13-14% target range
CONFIDENTIAL RWA down in 3Q’21: mix, models, optimisation, asset migration and FX …CET1 above the 13-14% target range with 4Q’21 headwinds to come Introduction Risk-weighted assets (RWA) ($bn) Income Expenses 3.8 $(12.7)bn • RWA down by $13bn (5%) from 30.06.21 Risk → Capital 280.2 o Asset growth of
Slide 9: Positive progress in what remain challenging conditions
CONFIDENTIAL Positive progress in what remain challenging conditions • We delivered a return to top line growth in 3Q’21… • … and made further progress against our strategic priorities Introduction Conclusion Income • We continue to transform how we serve our customers in the world’s dynamic markets
Slide 10: CONFIDENTIAL
CONFIDENTIAL 10
Slide 11: Appendix
CONFIDENTIAL Appendix Summary of guidance, macroeconomic indicators, other income, commercial real estate, 1H’21 disclosure: interest rate sensitivity Sustainability Notes, abbreviated terms and important notice 11
Slide 12: Summary of guidance
CONFIDENTIAL Summary of guidance 2021 Guidance Medium-term Guidance • We continue to expect FY’21 income to be similar to that achieved in FY’20 on a constant currency basis, with 4Q’21 being sequentially lower reflecting seasonality comparable to prior years, and normalising for the IFRS9 • We expe
Slide 13: Changes to baseline forecasts for key footprint markets
CONFIDENTIAL Stage 1 and 2 credit impairments Changes to baseline forecasts1 for key footprint markets: 2Q’21 to 3Q’21 2Q’21 3Q’211 2Q’21 3Q’211 China Hong Kong Korea Singapore India Crude price Brent, bbl GDP (YoY): 2021 Forecast 8.0% 8.8% 6.9% 6.9% 3.9% 4.2% 6.3% 7.0% 8.5% 9.5% 2021
Slide 14: 3Q'21 Other income ex-DVA was up 5%
CONFIDENTIAL 3Q’21 Other income ex-DVA was up 5%1 Income, statutory basis ($m) 6,426 6,291 2,281 2,032 1,929 1,978 2,476 • Net fees and commissions down 1% YoY Net fees and 1,013 commissions ($m) 2,849 o CPBB income was flat 1,463 910 918 926 o CCIB up 5% YoY driven by Transaction Banking 684 Net tr
Slide 15: Commercial Real Estate Exposure
CONFIDENTIAL Commercial Real Estate Exposure Commercial Real Estate Overview Commercial Real Estate • $18.5bn, or 6%, of total Group customer L&A of $302bn, Group Customer L&A ($bn): down $0.5bn in 2021 18.5 • $8.6bn to counterparties where the source of repayment is Commercial Real Estate substanti
Slide 16: 1H'21 Disclosure: Interest Rate Risk in the Banking Book
CONFIDENTIAL 1H’21 Disclosure: Interest Rate Risk in the Banking Book Sensitivity increased to reflect actual experience Annualised benefit to banking book NII from instantaneous parallel shifts in interest rates across all currencies ($m)1, 2 (50)bps +100bps +50bps • Following a review of the actua
Slide 17: Appendix
CONFIDENTIAL Appendix Summary of guidance, macroeconomic indicators, other income, commercial real estate, 1H’21 disclosure: interest rate sensitivity Sustainability Notes, abbreviated terms and important notice 17
Slide 18: Our roadmap to net zero financed emissions by 2050
CONFIDENTIAL Our roadmap to net zero financed emissions by 2050 Recognising the pivotal role we can play in the transition • Catalyse finance and partnerships to scale impact, Definition capital and climate solutions to where they are needed Achieving net zero financed most emissions by 2050, defini
Slide 19: We are building a leading Sustainable Finance franchise
CONFIDENTIAL We are building a leading Sustainable Finance franchise Catalysing the UN Sustainable Development Goals where it matters most Our approach Progress • The world must act now if it is to deliver the UN SDGs • Sustainable Finance financial performance for a more sustainable society o YTD i
Slide 20: Appendix
CONFIDENTIAL Appendix Summary of guidance, macroeconomic indicators, other income, commercial real estate, 1H’21 disclosure: interest rate sensitivity Sustainability Notes, abbreviated terms and important notice 20
Slide 21: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page Explanatory note or definition 1. Group income growth 3Q’21 vs 3Q’20 on a constant currency basis and excluding (1) debit valuation adjustment (DVA) (2) impact of the IFRS9 interest 2 income catch-up ad
Slide 22: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page Explanatory note or definition 1. Cost-to-income ratio is calculated as Income ex-DVA / Operating expense ex-UK bank levy 6 2. Excludes the UK bank levy and investments 3. Other is the net of cost infla
Slide 23: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page Explanatory note or definition 1. Source: Standard Chartered Global Research as at 01.09.21 13 1. Statutory basis net fees and commissions + net trading & other income, excluding DVA YTD’21 vs YTD’20 ch
Slide 24: Selected technical and abbreviated terms
CONFIDENTIAL Selected technical and abbreviated terms Term Definition Term Definition Affluent Loan-loss rate Total credit impairment for loans and advances to customers over average loans and advances to Personal banking services offered to affluent and emerging affluent customers (LLR) customers a
Slide 25: 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