Standard Chartered Plc · LSE:STAN

Standard Chartered — Investor Day (November 2013)

15 slides from Standard Chartered's investor day presentation, Nov 11, 2013

  1. Slide 1: 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

  2. Slide 2: Key messages

    Key messages  2013 performance has been resilient  We are confident in our markets and our competitive strengths  Our strategy remains consistent and we are sharpening our focus  We aspire to strong growth while focusing on returns

  3. Slide 3: 10 years of financial objectives

    10 years of financial objectives Profit and income (US$bn) 10 year CAGR 15% 10 year profit CAGR 18% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Operating income Operating profit before tax Earnings Per Share (EPS) cents 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2012 225 Doubl

  4. Slide 4: Financial framework

    Financial framework  Double digit income growth  Neutral cost – income jaws (with positive bias)  Double digit Earnings per Share (EPS) growth  Mid-teens Return on Equity (ROE) over the medium term

  5. Slide 5: Financial framework (cont'd)

    Financial framework (cont’d) Operational cost RWA management 5.4  Investment prioritisation 4.8 4.9  Greater returns from RWA deployed 1.7 1.6 1.4  Driving greater cross sell into lower RWA intensive products 2011 2012 2013 Operations cost-income jaws (%) FX transaction cost (US$)  Intensify our

  6. Slide 6: Strong foundations: Basics of good banking

    Strong foundations Basics of good banking  A conscious  Strongly  Clearly defined  Double digit strategy to build capitalised risk appetite income growth balance sheet Capital & liquidity Financial metrics strength  Neutral cost-  Diversity by income jaws  Highly liquid geography, Principles

  7. Slide 7: Liquidity

    Liquidity Total liabilities US$650bn* Customer deposits US$381bn* Senior debt 3% Americas, Derivatives 8% UK & Europe Hong Kong Customer accounts 18% 26% Equity 59% 7% Africa 3% Other debt securities 7% MESA 7% Bank deposits 7% India 3% Other liabilities 6% Other APR Singapore Subordinated 16% 19% l

  8. Slide 8: Capital

    Capital Capital in the new world  Strongly capitalised with a focus on Common Equity Tier (CET) 1 RWA  Pro-forma Basel III CET1 ratio model impact of 80bps to 100bps changes Higher Leverage RWA ratio  Pro forma Basel III end point leverage ratio of 4.6% Higher Stricter Minimum definition Funding

  9. Slide 9: CRD IV – impact and model changes

    CRD IV – impact and model changes Basel III impact on capital IRB* model performance All IRB Residental mortgages (0.5) Insitutions and central governments (0.3) 11.4 (0.2) Corporates 10.9 10.6 10.4 10.4 Consumer banking Wholesale banking H1 2013 Capital RWA Others H1 2013 (Basel 2.5) (Basel III) Pe

  10. Slide 10: Resource allocation framework

    Resource allocation framework Growth vs. returns  Top line - Income growth RoRWA Avg. 2010 – 2012 (%) Growth Hong NG AMS Kong Africa Singapore India MY TH UAE  Return on RWA – Profit Returns and income ID Korea China TW  Dividends vs. equity Income growth CAGR 2009 – 2012 (%) Dividend deployed Ma

  11. Slide 11: India

    India Our plan Growth vs. returns  Selectively allocate RWA capacity to support client growth India (RoRWA 2010-2012)  Improve capital efficiency and returns Returns  Improve productivity and reduce cost base  Focus on local currency liability gathering  Continue to grow network business Growth

  12. Slide 12: Korea

    Korea Our plan Growth vs. returns  De-risk loan portfolios  Reshape the balance sheet to improve (RoRWA 2010-2012) capital efficiency and returns Returns  Focus on inbound and network income Korea  Align RWA to build network income  Focus on cost productivity Growth (Income growth 2009 – 2012)

  13. Slide 13: Hong Kong

    Hong Kong Our plan Growth vs. returns  Continue to invest RWA and expense Hong capacity Kong  Capture financial flows into and out of (RoRWA 2010-2012) China Returns  Further integrate the Greater China strategy  Capitalise on the RMB internationalisation opportunity Growth (Income growth 2009 –

  14. Slide 14: Africa

    Africa Our plan Growth vs. returns  Continue to invest RWA and expense Africa capacity  Enhance distribution through “Africa 100” (RoRWA 2010-2012) Returns  Deliver digital capabilities  Develop local balance sheet scale in Nigeria  Extend footprint to next generation markets Growth (Income gro

  15. Slide 15: Key messages

    Key messages  2013 performance has been resilient  We are confident in our markets and our competitive strengths  Our strategy remains consistent and we are sharpening our focus  We aspire to strong growth while focusing on returns

Standard Chartered — Investor Day (November 2013) on 6ix