Standard Chartered Plc · LSE:STAN
Standard Chartered — Investor Day (December 2024)
41 slides from Standard Chartered's investor day presentation, Dec 3, 2024
Slide 1: Leading in Affluent
INTERNAL Leading in Affluent Affluent Investor Seminar 3 December 2024
Slide 2: Table of contents
CONFIDENTIAL Table of contents Contents Page Judy Hsu, CEO, Wealth and Retail Banking • Key messages 3 • Affluent overview and strategy 11 • Closing remarks 37 Jean Fernandes, CFO, Wealth and Retail Banking • Affluent overview and strategy 5 Raymond Ang, Global Head, Private Bank and Affluent Client
Slide 3: Affluent overview and strategy
CONFIDENTIAL Affluent overview and strategy Judy Hsu CEO, Wealth and Retail Banking Jean Fernandes CFO, Wealth and Retail Banking 3
Slide 4: Key messages
CONFIDENTIAL Key messages We are a large and successful wealth manager in Asia, Africa and the Middle East; and we are growing faster than market We have three key differentiators: our client continuum, a global network, and expertise in wealth solutions We are investing $1.5bn in our Affluent busin
Slide 5: Affluent is a core business in WRB
CONFIDENTIAL Affluent is a core business in WRB WRB income split Our affluent client tiers 9M’24 Net worth >$10m Affluent income split Private Others1 7% Net interest AUM >$1m Priority Affluent income Private Deposits 50% 59% 68% AUM >$100k Priority 32% Wealth Non-interest Solutions income 43% 41% A
Slide 6: Affluent is a large and high-returning business
CONFIDENTIAL Affluent is a large and high-returning business Affluent accounts for a quarter of Group income… Affluent contributes one-third of Group profit… Affluent 27% Affluent 33% 9M’24 income 9M’24 profit 67% 73% Rest of Group Rest of Group … and generates >2.5x income return on RWA … with lowe
Slide 7: Affluent income growth is accelerating; wealth is a major contributor
CONFIDENTIAL Affluent income growth is accelerating; wealth is a major contributor Strong growth since 2016 Growth accelerating CAGR YoY ccy Affluent income ($bn) 2016-2019 4.6 4.0 15% 3.5 9% 3.7 3.5 3.5 3.5 1.7 3.3 1.7 30% 3.1 1.3 2.7 1.5 1.6 9% 1.7 1.5 1.9 1.5 1.2 Wealth Solutions1 2.9 2.3 6% 2.2
Slide 8: Building affluent and wealth solutions capabilities since 2016
CONFIDENTIAL Building affluent and wealth solutions capabilities since 2016 Building priority banking and wealth capabilities Pivot to affluent with focus on international AUM ($bn) Reshape private bank Enhanced Global Chinese & Global Indian proposition Priority private refresh Family advisory, Tru
Slide 9: Momentum in NNM fuelling AUM growth and outperforming the market
CONFIDENTIAL Momentum in NNM fuelling AUM growth and outperforming the market Our AUM growth is primarily driven by net new money We intend to outperform financial assets growth in our footprint… … which are expected to grow 8-9% CAGR NNM1 average per annum ($bn) 40 Market size – Financial assets3 (
Slide 10: We are a top wealth manager in Asia, and growing faster than market
CONFIDENTIAL We are a top wealth manager in Asia, and growing faster than market Top 20 wealth managers in Asia1 Net new money (NNM)2 FY’23 Asia AUM ($bn) Asia NNM ($bn) PB 645 UB 549 UB 277 14.0% 60 12.7% SC 253 #4 12.0% 49 UB 210 50 PB 169 10.0% PB 151 8.9% 40 PB 140 32 8.0% UB 133 30 PB 116 5.8%
Slide 11: Our client continuum offers a distinctive pipeline of high value clients
CONFIDENTIAL Our client continuum offers a distinctive pipeline of high value clients Affluent new clients Priority Private 9M’24 Private Priority Premium Personal Uptiered 46% from personal1 • We service full client continuum which is a key differentiator and a New-to-bank 54% powerful growth engin
Slide 12: Our global network enables access to attractive international client base
CONFIDENTIAL Our global network enables access to attractive international client base Strong presence in 4 international wealth hubs International clients1 AUM growth 2x domestic $bn Well placed to capture wealth flows with deep-rooted presence across Asia, Africa and the Middle East CAGR +9% CAGR
Slide 13: Product innovation and personalised advisory driving higher wealth AUM
CONFIDENTIAL Product innovation and personalised advisory driving higher wealth AUM Wealth AUM • Comprehensive product propositions through innovation and open $bn architecture − Differentiated portfolio solutions tailored to various client needs +9% CAGR − Capital market solutions to help clients c
Slide 14: We will invest $1.5bn over 5 years
CONFIDENTIAL We will invest $1.5bn over 5 years Focus segments Investment areas Invest in growing our international banking proposition where we are most differentiated People Digital & technology ~50% ~25% Private & priority private International Brand, marketing & client centers ~25% Key markets &
Slide 15: On track to achieve our 2026 targets
CONFIDENTIAL On track to achieve our 2026 targets Affluent net new money Up-tiering of individual clients1 International clients2 Achieved ~42% of 3-year NNM target in 9 months Over 20% of 3-year target achieved in 9 months Delivered ~45% of the 3-year growth target in 9 months NNM ($bn) Number of i
Slide 16: We are now revising and setting ambitious targets
CONFIDENTIAL We are now revising and setting ambitious targets 2025-2029 targets Net new money Wealth Solutions income $200bn Double-digit CAGR Affluent income share of WRB to reach 75% 16
Slide 17: Our clients
CONFIDENTIAL Our clients Raymond Ang Global Head, Private Bank and Affluent Clients 17
Slide 18: Key messages
CONFIDENTIAL Key messages Our affluent clients span a continuum across asset levels; up-tiering our clients through the wealth cycle is a key differentiator Our network is a competitive advantage; we are investing in our international proposition Our clients rate us highly on our service and offerin
Slide 19: Attractive growth from upper client continuum and international clients
CONFIDENTIAL Attractive growth from upper client continuum and international clients Income NNM 9M’24 Total clients1 Wealth vs. contribution contribution2 (#’000) other products ($m) ($bn) Net worth >$10m ~13% ~35% ~7 Private AUM >$1m Priority ~23% ~40% ~53 Private AUM >$100k Priority ~53% ~25% ~1,2
Slide 20: ~300k individual clients up-tiered through the client continuum per annum
CONFIDENTIAL ~300k individual clients up-tiered through the client continuum per annum FY’23 Income multiple per client Individual client up-tiering (#’000) Net worth >$10m Private ~170x Priority to AUM >$1m Priority ~40x Priority Private Private ~10 & Private AUM >$100k Priority ~5x Premium ~50 to
Slide 21: We operate in fast growing hubs, capturing offshore wealth opportunity
CONFIDENTIAL We operate in fast growing hubs, capturing offshore wealth opportunity We play in the fastest growing wealth booking centres Our international business has grown faster than market Wealth in booking centre1 ($tn) AUM ($bn) CAGR 2023 2028 +12% CAGR 2023-2028 Hong Kong 2.4 3.2 6.0% Switze
Slide 22: Global Chinese clients spanning Greater Bay Area and across our network
CONFIDENTIAL Global Chinese clients spanning Greater Bay Area and across our network Wealth of addressable Global Chinese in our footprint grew ~2x since 20191 Client profile $tn ~2x • Entrepreneurs with cross-border businesses 1.3 • Retail investors looking for global wealth diversification • Salar
Slide 23: Capturing Global Indian clients opportunity
CONFIDENTIAL Capturing Global Indian clients opportunity Wealth of addressable Global Indians in our footprint grew ~1.4x since 20191 Client profile $tn ~1.4x • Working professionals looking to grow wealth globally 1.1 • Established families seeking wealth preservation and transfers 0.8 • Internatio
Slide 24: Priority and priority private clients value our offering
CONFIDENTIAL Priority and priority private clients value our offering Net Promoter Score (NPS) in our top markets1 Client profile Our H1’24 NPS ranking 1 1 1 3 1 3 • Corporate executives, SME owners, and retirees Client needs • Wealth preservation and new investment opportunities 2022 • Wealth diver
Slide 25: Private bank clients value our offering
CONFIDENTIAL Private bank clients value our offering Improvement in client satisfaction Client profile Net promoter score1 RM satisfaction score1 • Founders, entrepreneurs, family offices, and senior executives of conglomerates Client needs • Asset growth and preservation, alternative investments, r
Slide 26: We will continue to invest to further grow our affluent business
CONFIDENTIAL We will continue to invest to further grow our affluent business Digital capabilities and platforms Brand awareness • Improve capabilities in digital enablement, technology and operations • Lower marketing spend in key markets, resulting in lower brand awareness1 • Focus on strengthenin
Slide 27: We are investing in growing and upskilling our RMs
CONFIDENTIAL We are investing in growing and upskilling our RMs Private RMs Why RMs choose us We have grown a team of private banking RMs with experienced new hires from industry • Transparent reward system, clear career path and progression Experience of RMs hired since Jan’23 • Fair and strong peo
Slide 28: Our products
CONFIDENTIAL Our products Samir Subberwal Global Head, Wealth Solutions, Deposits and Mortgages, and Chief Client Officer 28
Slide 29: Key messages
CONFIDENTIAL Key messages We have a diversified affluent business that is well positioned to drive growth We follow a clear wealth advisory approach enabled by digital wealth and advisory capabilities Our open architecture approach provides differentiated and comprehensive solutions tailored to clie
Slide 30: Diversified business well positioned for growth
CONFIDENTIAL Diversified business well positioned for growth Affluent income diversified across markets… … and across products Return on total wealth AUM 9M’24 income by market 9M’24 Income by product ($m) Investment Products income / average total wealth AUM, annualised 4 YoY ccy +15% ccy 4,020 9%
Slide 31: NNM accelerating; higher share of wealth supporting income growth
CONFIDENTIAL NNM accelerating; higher share of wealth supporting income growth NNM more weighted to wealth AUM mix2 (sample market) NNM1 (9M’24, $bn) Wealth AUM increases over time as relationship deepens; mix shift from TD to Wealth tends to happen as clients look for alpha in a lower rate environm
Slide 32: Consistent and disciplined approach to wealth advisory
CONFIDENTIAL Consistent and disciplined approach to wealth advisory Clear advisory framework and process CIO house views and asset allocation models Disciplined portfolio reviews to help clients for investment proposals stay on track… • Global advisory framework bringing consistency to • Unbiased CI
Slide 33: Open architecture provides best of breed products from leading providers
CONFIDENTIAL Open architecture provides best of breed products from leading providers Handpicked portfolio solutions from ~100 traditional and alternative Real-time access to multiple counterparties for competitive and asset managers customised pricing Sample partners: Traditional Alternative Real-t
Slide 34: Differentiated portfolio solutions tailored to unique client needs
CONFIDENTIAL Differentiated portfolio solutions tailored to unique client needs Signature CIO1 Funds: foundation portfolios Exclusive solutions via the SC Funds VCC1 Alternative solutions catering for HNW2 and UHNW2 built on CIO1 expertise structure clients’ wealth needs Unique in-house foundation p
Slide 35: Comprehensive capital market solutions to capture global opportunities
CONFIDENTIAL Comprehensive capital market solutions to capture global opportunities Velocity of new product ideas for all market conditions Ease of execution, enabling sustainable growth and scale Innovations to capture growth opportunities in diverse market regimes Frontline tools Example: Structur
Slide 36: Holistic bancassurance propositions to protect clients' financial wellbeing
CONFIDENTIAL Holistic bancassurance propositions to protect clients’ financial wellbeing Holistic offerings to capture growing core insurance and specialised needs Differentiated partnership models to deliver competitive propositions for each segment 9M’24 Core insurance needs Savings 25-year strate
Slide 37: Closing remarks
CONFIDENTIAL Closing remarks Judy Hsu CEO, Wealth and Retail Banking 37
Slide 38: In conclusion
CONFIDENTIAL In conclusion We are confident in our ability to deliver sustainable growth We have a proven track record of strong performance Our three key differentiators remain our client continuum, a global network, and expertise in wealth solutions We are confident that our increased investment w
Slide 39: Speaker bios
CONFIDENTIAL Speaker bios Judy was appointed CEO, Wealth and Retail Banking (WRB) in January 2021. In addition, she has responsibility for our Greater China and North Asia markets. She has been a member of the Group Management Team since 2018 and is based in Hong Kong. With a banking career spanning
Slide 40: Speaker bios
CONFIDENTIAL Speaker bios Raymond joined Standard Chartered in July 2021. His banking career spans over 30 years having held various senior leadership positions in Asia with extensive regional and country responsibilities. He has deep experience in Private and Affluent Banking, servicing clients acr
Slide 41: 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