Slide 1: Full Year Results 2009
Full Year Results 2009 Leading the way in Asia, Africa and the Middle East 1
Slide 2: Forward looking statements
Forward looking statements This presentation contains or incorporates by reference ‘forward-looking statements’ regarding the belief or current expectations of Standard Chartered, the Directors and other members of its senior management about the Company’s businesses and the transactions described i
Slide 3: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East John Peace Chairman 3
Slide 4: Performance highlights
Performance highlights Income US$15.18bn 9% Profit before tax US$5.15bn 13% Normalised EPS 179.8c 3% Dividend (per share) 66.03c 7% Core Tier 1 capital 8.9% 4
Slide 5: Support for customers
Support for customers Pearle
Slide 6: Support for customers
Support for customers Chartered & e A
Slide 7: Remuneration
Remuneration Policy is to pay for performance. We do not reward failure Compensation to revenue ratio down to 32% UK bank payroll tax spread across global bonus pool Clawback where appropriate 7
Slide 8: Summary
Summary Another successful year Right strategy and in the right markets Resilience and momentum 8
Slide 9: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 9
Slide 10: Key highlights
Key highlights Record levels of income and profit Demonstrable cost control resulting in positive jaws Risk environment improving and loan impairment falling Liquidity and capital strength enhanced 10
Slide 11: Group performance
Group performance US$m 2008 2009 YOY % Income 13,968 15,184 9 Expenses (7,611) (7,952) 4 Operating profit before impairment 6,357 7,232 14 Loan impairment (1,321) (2,000) 51 Other impairment (469) (102) (78) Profit from associates 1 21 nm Profit before tax* 4,568 5,151 13 Profit attributable to ordi
Slide 12: Performance metrics
Performance metrics 2008 2009 YOY % DPS (cents) 61.62 66.03 7 Normalised EPS (cents) 174.9 179.8 3 Normalised ROE (%) 15.2 14.3 12
Slide 13: Group balance sheet
Group balance sheet FY H1 FY YOY US$bn 2008 2009 2009 US$bn CASA 117.3 135.3 157.3 40 Time deposits 145.2 129.7 133.9 (11) Other deposits 12.1 5.0 4.5 (8) Total deposits US$bn 274.6 270.0 295.7 21 A/D ratio %* 74.8 78.4 78.6 Liquidity ratio % 23.1 24.1 26.2 Total assets 435.1 411.2 436.7 * Ratio of
Slide 14: Group balance sheet - assets
Group balance sheet - assets US$bn 2008 2009 YOY % Consumer loans to customers 80.7 94.6 17 Wholesale loans to customers 98.5 108.1 10 Portfolio impairment provision (0.7) (0.9) 29 Derivatives 69.7 38.2 (45) Loans and advances to banks 46.6 50.9 9 Assets held at fair value† 11.1 18.9 70 Investment s
Slide 15: Capital
Capital 16.6 16.5 16 15.6 15.1 5.1 5.0 5.7 12 6.6 3.1 2.6 2.4 % 8 2.4 Tier 1 Tier 1 Tier 1 11.5 11.5 Tier 1 9.9 8.9 4 8.5 7.5 8.4 6.1 0 H1 08 FY 08 H1 09* FY 09 Core Tier 1 Tier 2 and 3 * Includes the impact of equity placing 15
Slide 16: Consumer Banking performance
Consumer Banking performance YOY % US$m 2008 2009 YOY % Constant currency Income 5,952 5,629 (5) 0 Expenses (3,843) (3,709) (3) 2 Operating profit before impairment 2,109 1,920 (9) (5) Loan impairment (937) (1,052) 12 20 Other impairment (56) (1) nm nm Operating profit 1,116 867 (22) (19) 16
Slide 17: Consumer Banking performance trends
Consumer Banking performance trends Income Expenses US$m US$m 3,000 3,000 FY08 (3%) FY09 2,500 2,500 2,000 2,000 Investment US$80m 1,500 1,500 1,000 1,000 H1 08 H2 08 H1 09 H2 09 H1 08 H2 08 H1 09 H2 09 Loan impairment Profit US$m US$m 800 800 600 600 400 400 200 200 0 0 H1 08 H2 08 H1 09 H2 09 H1 0
Slide 18: Consumer Banking income
Consumer Banking income US$m 1,600 1,400 1,200 1,000 800 600 400 200 0 CCPL Wealth Management Mortgages and and Deposits Auto Finance H108 H208 H109 H209 18
Slide 19: Consumer Banking loan impairment trend
Consumer Banking loan impairment trend Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 FY09 Mortgages LI/ANR 0.05% 0.13% 0.31% 0.08% 0.16% 0.17% 30dpd/ENR 1.34% 1.22% 1.19% 0.99% 0.90% 0.90% Loan book (US$bn) 47 47 51 55 58 58 LI (US$m) 6 16 40 11 23 90 SME LI/ANR 2.75% 2.31% 1.96% 1.48% 1.33% 1.74% 90dpd/ENR 2.52% 2
Slide 20: Wholesale Banking performance
Wholesale Banking performance US$m 2008 2009 YOY % Income 7,489 9,291 24 Expenses (3,768) (4,185) 11 Operating profit before impairment 3,721 5,106 37 Loan impairment (384) (948) 147 Other impairment (336) (82) (76) Operating profit 3,001 4,076 36 Risk weighted assets (US$bn) 136.7 160.7 18 20
Slide 21: Wholesale Banking income
Wholesale Banking income Client income growth Income growth by segment (%) by product (%) Lending and Global Corporates 42 54 Portfolio Management Transaction Financial Institutions 4 (5) Banking Local Corporates 21 Global Markets 38 Commodity Traders 38 21
Slide 22: Diversified income streams
Diversified income streams Total income by product US$m 2008 H1 09 H2 09 2009 YOY % Lending & Portfolio Mgt 551 412 437 849 54 Transaction Banking 2,663 1,272 1,265 2,537 (5) Trade 1,023 625 664 1,289 26 Cash Mgt & Custody 1,640 647 601 1,248 (24) Global Markets 4,275 3,343 2,562 5,905 38 Financial
Slide 23: Wholesale Banking Financial Markets
Wholesale Banking Financial Markets Total income by product US$m 2008 H1 09 H2 09 2009 YOY % FX 1,194 831 518 1,349 13 Rates 748 573 306 879 18 Commodities and Equities 141 236 153 389 176 Capital Markets 234 226 183 409 75 Credit and Other 48 170 115 285 494 Total Financial Markets 2,365 2,036 1,27
Slide 24: Wholesale Banking loan impairment
Wholesale Banking loan impairment US$m 2008 H1 09 H2 09 2009 YOY % Specific impairment provision (394) (498) (384) (882) 124 Recoveries 89 19 57 76 (15) Portfolio impairment provision (79) (46) (96) (142) 80 Total net charge (384) (525) (423) (948) 147 Loans and advances to customers (US$bn)* 98.5 1
Slide 25: MESA
MESA US$m 2008 2009 YOY % Income 1,658 2,078 25 Expenses (821) (891) 9 Operating profit before impairment 837 1,187 42 Loan impairment (185) (811) 338 Other impairment - (10) nm Operating profit 652 366 (44) Loans and advances to customers (US$bn)* 17.6 18.8 7 Consumer loans 4.3 4.2 (2) Wholesale lo
Slide 26: India
India YOY % US$m 2008 2009 YOY % Constant currency Income 1,694 1,813 7 17 Wholesale Banking* 1,064 1,369 29 43 Consumer Banking* 484 444 (8) 1 Expenses (646) (571) (12) (2) Operating profit before impairment 1,048 1,242 19 30 Loan impairment (133) (201) 51 67 Other impairment (24) 19 nm nm Operatin
Slide 27: Korea
Korea YOY % US$m 2008 2009 YOY % Constant currency Income 1,547 1,554 - 16 Wholesale Banking 530 559 5 22 Consumer Banking 1,017 995 (2) 13 Expenses (955) (953) - 16 Operating profit before impairment 592 601 2 17 Loan impairment (263) (278) 6 22 Other impairment - (1) nm nm Operating profit 329 322
Slide 28: Outlook
Outlook 2010 has started well Good momentum in both businesses Remain focused on foundations 28
Slide 29: 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 29
Slide 30: 2009 Challenges
2009 Challenges Korea Middle East Wealth Management and Deposits 30
Slide 31: Own Account income
Own Account income US$bn 4 3 2 1 0 H1 09 H2 09 Own Account income Client ALM Principal Finance income Financial Markets 31
Slide 32: Global economic outlook
Global economic outlook GDP % 2009 2010F US -2.4 2.6 UK -5.0 1.2 Eurozone -4.0 1.2 China 8.5 10.0 India * 6.8 7.5 Hong Kong -2.7 5.4 Taiwan -1.9 4.0 Korea 0.2 4.8 Singapore -2.0 5.1 Source: SCB Global Research * For fiscal year starting April 32
Slide 33: Macro economic risks in 2010
Macro economic risks in 2010 Global imbalances Deleveraging Fiscal and monetary withdrawal Unemployment and protectionism Unintended consequences of regulation 33
Slide 34: Regulation
. Standard @&9 Regulation Chartered S
Slide 35: Regulatory proposals
Regulatory proposals More and better quality capital Effective non-equity capital Increased risk weighting of trading activity Robust liquidity regulation Simplified resolution Harmonised accounting Common principals on remuneration Macro-prudential tools 35
Slide 36: Group strategy
Group strategy Leading the way in Asia, Africa and the Middle East Emphasis on organic growth Conservative business model One Bank 36
Slide 37: Performance by geography
Performance by geography Profit before tax US$m 2008* 2009 YOY US$m Hong Kong 989 1,062 73 Singapore 608 714 106 Korea 329 322 (7) Other APR 705 770 65 India 891 1,060 169 MESA 652 366 (286) Africa 313 482 169 Americas, UK & Europe 81 375 294 Total 4,568 5,151 583 * Restated as explained in note 33
Slide 38: 2010 priorities
2010 priorities Maintain track record of delivery Sustain Wholesale Banking momentum Complete the transformation of Consumer Banking Focus on the basics of banking Liquidity Capital Proactive approach to risk management Firm cost discipline Reinforce the brand 38
Slide 39: Wholesale Banking
Wholesale Banking US$bn Operating profit 26% 7 year CAGR 9,291 Income 23% 7 year CAGR 7,489 5,243 3,923 4,076 3,059 3,001 2,574 2,252 2,347 2,123 1,849 1,444 1,175 795 933 2002 2003 2004 2005 2006 2007 2008 2009 39
Slide 40: Consumer Banking
Consumer Banking 2008 2009 Active online customers 1.1M 1.5M Countries with online banking 25 29 Countries with mobile banking 17 30 E-statements 9% 20% 40
Slide 41: Consumer Banking
Consumer Banking 2009 vs 2008 Asset growth (%) Deposit growth (%) Mortgages 21 CASA 51 SME 14 (22) Time & Other Deposits Other Loans 10 Total 17 Total 11 41
Slide 42: Brand
Standard Chartered
Slide 43: Summary
Summary 43