Standard Chartered Plc · LSE:STAN
Standard Chartered — Investor Day (November 2022)
34 slides from Standard Chartered's investor day presentation, Nov 22, 2022
Slide 1: CPBB Affluent Clients Investor Event
CONFIDENTIAL CPBB Affluent Clients Investor Event 22 November 2022 | 08.00 to 09.00 GMT
Slide 2: Contents
CONFIDENTIAL Contents Judy Hsu, CEO, Consumer, Private & Business Banking • Introduction 4 • Conclusion 26 Raymond Ang, Global Head, Affluent Clients • Overview of Affluent Clients 7 Marc Van de Walle, Global Head, Wealth Management, Deposits and Mortgages • Overview of Wealth Management 13 Bongiwe
Slide 3: Introduction
CONFIDENTIAL Introduction 3
Slide 4: Consumer, Private & Business Banking (CPBB) Overview
CONFIDENTIAL Consumer, Private & Business Banking (CPBB) Overview Serving individuals and $4.5bn Income (9M’22) small businesses, leading with a focus on the Business Banking Mortgage Korea Others 9% | $0.4bn affluent in many of the 13% | $0.6bn 14% | $0.6bn 6% | $0.3bn Singapore India 16% | $0.7bn
Slide 5: Key Messages
CONFIDENTIAL Key Messages We have a scalable platform With our deep-rooted network The Affluent Client and trusted brand, we are in a anchored on market-leading segment is a high growth, unique position to serve the Wealth Management and high returns business local and international banking cross-bo
Slide 6: Affluent Clients
CONFIDENTIAL Affluent Clients 6
Slide 7: The Affluent Clients segment is well positioned to unlock the value of the client wealth continuum
CONFIDENTIAL The Affluent Clients segment is well positioned to unlock the value of the client wealth continuum Continuum Advantages Affluent Clients Income / • Differentiated value propositions aligned to client needs Wealth vs. # Active Active Other across their wealth lifecycles; strong Net Promo
Slide 8: Strong growth 2016 to 2021; 2022 impacted by weaker market sentiment more than offset by rising interest rates
CONFIDENTIAL Strong growth 2016 to 2021; 2022 impacted by weaker market sentiment more than offset by rising interest rates CAGR 9M’22 5% CAGR (2016 – 21) 1% / 5% ccy YoY (ccy) 3.35 3.54 3.50 3.55 2.76 2.80 2.75 3.10 Income 1.62 1.80 1.93 1.78 1.62 1% 1.22 1.55 35% 34% Income ($bn) 1.51 1.24 1.48 1.
Slide 9: We offer differentiated and well recognised propositions across the continuum
CONFIDENTIAL We offer differentiated and well recognised propositions across the continuum Premium Priority Priority Private Private Bank AUM $ 25 - 100k AUM $ 100k - 1m AUM $ 1 - 10m Net worth > $ 10m Wealth insights Make the most of The rarefied made to matter your achievements perspective Banking
Slide 10: Our unique and diversified footprint offers an unrivalled Affluent client opportunity
CONFIDENTIAL Our unique and diversified footprint offers an unrivalled Affluent client opportunity Affluent Client Markets and Flows Wealth Growth1 Middle East, Jersey, UK Financial Wealth Growth by Region • Bahrain • Jersey • UAE • London ($tn) 2021 2026 CAGR (Private Bank) Asia ex Japan 52 79 8.7%
Slide 11: Standard Chartered is amongst the top Wealth Managers in Asia
CONFIDENTIAL Standard Chartered is amongst the top Wealth Managers in Asia 2021 Top 20 Wealth Managers in Asia1 ▪ In 2021, the top 20 wealth managers in Asia managed $3.3tn in total 521 ▪ SC’s share of this $3.3tn is 7% 493 ▪ SC grew its AUM from 2020 to 2021 at 6% vs. its top 20 peers at 2% overall
Slide 12: Wealth Management
CONFIDENTIAL Wealth Management 12
Slide 13: Our Wealth Management income stream is well diversified, with opportunities to grow
CONFIDENTIAL Our Wealth Management income stream is well diversified, with opportunities to grow by leveraging new solutions and best practices Income by client segment (9M’22, $m) Income by product (9M’22, $m) Income by market (9M’22, %) % of % of Total WM Total WM 1,442 1,442 9% Business Banking 1
Slide 14: We have delivered strong growth and expect to recover our growth trajectory
CONFIDENTIAL We have delivered strong growth over the last 5 years and expect to recover our growth trajectory beyond this year’s financial markets headwinds (18)% / 9% CAGR (16)% ccy Wealth 2.23 1.74 1.80 1.88 1.99 1,759 Management 1.47 1,442 Income ($bn) 2016 2017 2018 2019 2020 2021 9M’21 9M’22 1
Slide 15: Our investment platform is distinctively open architecture for unbiased advisory
CONFIDENTIAL Our investment platform is distinctively “open architecture” for unbiased advisory and best in class solutions Unique open structure, multi- manager, DPM Best in class capital market Distributing funds solutions from ~100 traditional While leveraging on • Real-time FX derivatives pricin
Slide 16: We have a leading Bancassurance franchise with world class strategic partnerships
CONFIDENTIAL We have a leading Bancassurance franchise with world class strategic partnerships Long-term strategic tie-up with Prudential Delivering superior growth in key markets Key opportunities … YoY APE Growth vs Industry • Capture growth across Asia (FY’21 vs FY’20)1 with industry gross writte
Slide 17: We are delivering a single Wealth platform to scale across our footprint and client continuum
CONFIDENTIAL We are delivering a single Wealth platform to scale across our footprint and client continuum by replicating standard components across markets and segments Personal Premium Priority Private Bank Single Wealth Platform across the client continuum Opportunities of a Non-technology relate
Slide 18: We offer a fully integrated digital Wealth platform with seamless omnichannel journeys
CONFIDENTIAL We offer a fully integrated digital Wealth platform with seamless omnichannel journeys and personalised advice Fully digital investment journey 3 Receive personalised investment ideas via myWealth Direct 4 Invest in online mutual funds in just 1 click ~80% Wealth transactions done digit
Slide 19: We are increasingly recognised as a leader in digital Wealth
CONFIDENTIAL We are increasingly recognised as a leader in digital Wealth and are delivering new digital capabilities at a fast pace Global Private Banking Innovation Awards 2022 Digital CX Awards 2022 Asian Banking & Finance1 Retail Banking Awards 2022 19 Footnotes on pages 31-32; Glossary on page
Slide 20: Markets
CONFIDENTIAL Markets 20
Slide 21: We are focused on both local and international growth opportunities within our markets
CONFIDENTIAL We are focused on both local and international growth opportunities within our markets of participation Local International Core Markets 6 • Hong Kong • Singapore 4 Wealth Advisory Hubs • Hong Kong • Singapore • India • China • UAE • Korea • Jersey • Taiwan International Growth Markets
Slide 22: Strong growth in our International business driven by the power of our unique network
CONFIDENTIAL Strong growth in our International business driven by the power of our unique network and institutionalised process and platforms International Banking Sources of advantage • Rooted client base across Asia, Africa and Middle East offered international CAGR YOY banking and investment opp
Slide 23: Hong Kong, anchored to capture the Greater China opportunity
CONFIDENTIAL Hong Kong, anchored to capture the Greater China opportunity Hong Kong, a gateway to growth in Greater China Largest global cross-border financial hub by 2026 • Expected 8% CAGR2 (’21-’26) driven by Greater China inflows 16-21 9M’22 CAGR YOY • Greater Bay Area, a market ecosystem with 4
Slide 24: Singapore, well-positioned to be a Global Affluent hub
CONFIDENTIAL Singapore, well-positioned to be a Global Affluent hub Singapore, an engine for international growth Fastest growing global financial centre Expected 10% CAGR1 (2021 - 2026) 16-21 9M’22 o 70% driven by on cross-border wealth flows CAGR YOY o Substantial worldwide wealth inflows from G
Slide 25: Conclusion
CONFIDENTIAL Conclusion 25
Slide 26: Key Messages
CONFIDENTIAL Key Messages We have a scalable platform With our deep-rooted network The Affluent Client and trusted brand, we are in a anchored on market-leading segment is a high growth, unique position to serve the Wealth Management and high returns business local and international banking cross-bo
Slide 27: Speaker biographies
CONFIDENTIAL Speaker biographies 27
Slide 28: Speaker biographies
CONFIDENTIAL Speaker biographies Judy was appointed CEO, Consumer, Private & Business Banking in January 2021 and has been a member of the Group Management Team since 2018. Judy’s banking career spans more than 30 years having held various leadership roles in Asia with global, regional and market re
Slide 29: Speaker biographies
CONFIDENTIAL Speaker biographies Marc joined Standard Chartered Bank in July 2020 and is responsible for driving the Wealth Management, Deposits, Mortgages and Payments propositions across Consumer, Private and Business Banking (CPBB). Marc has over 25 years of experience in Retail Banking, Private
Slide 30: Speaker biographies
CONFIDENTIAL Speaker biographies Samir is Regional Head of Consumer, Private and Business Banking for Asia and Global Head of Digital Business. Samir has over 25 years of experience in banking. Prior to his current role, he was the Managing Director & Regional Head of Retail Banking for Greater Chin
Slide 31: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page Explanatory note or definition 1. CCPL: Credit Cards and Personal Loans 4 2. CIR: Cost-to-income ratio 3. Based upon Net Promoter Scores at 1H’22 Six best-in-class markets are Singapore, India, China, H
Slide 32: Notes
CONFIDENTIAL Notes These notes refer to the metrics and defined terms on the following pages Page Explanatory note or definition 1. Active clients in the top 12 markets 14 1. Source: PWC analysis; ‘APE’ refers to Annual Premium Equivalent 16 2. Source: Fitch reports / Oliver Wyman analysis 3. Source
Slide 33: Selected technical and abbreviated terms
CONFIDENTIAL Selected technical and abbreviated terms Term Definition APE Annual Premium Equivalent AuM Assets under management bps Basis points CAGR Compound annual growth rate A performance measure on a constant currency basis is presented such that comparative periods ccy are adjusted for the cur
Slide 34: 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