Source - LSE Regulatory
RNS Number : 0400X
Standard Chartered PLC
29 April 2021
 

Standard Chartered PLC - first quarter 2021 results

 

Table of contents

 

 

Performance highlights

1

Statement of results

2

Group Chief Financial Officer's review

3

Supplementary financial information

11

Underlying versus statutory results reconciliations

24

Risk review

30

Capital review

35

Financial statements

40

Other supplementary financial information

45

Forward-looking statements

This document may contain 'forward-looking statements' that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'continue' or other words of similar meaning.

By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. The factors that could cause actual results to differ materially from those described in the forward-looking statements include (but are not limited to) changes in global, political, economic, business, competitive, market and regulatory forces or conditions, future exchange and interest rates, changes in tax rates, future business combinations or dispositions and other factors specific to the Group. Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Group and should not be taken as a representation that such trends or activities will continue in the future.

No statement in this document is intended to be a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please refer to the Group's 2020 Annual Report for a discussion of certain risks and factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter.

 

 

 

 

 

Unless another currency is specified, the word 'dollar' or symbol '$' in this document means US dollar and the word 'cent' or symbol 'c' means one-hundredth of one US dollar.

The information within this report is unaudited.

Unless the context requires, within this document, 'China' refers to the People's Republic of China and, for the purposes of this document only, excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to the Republic of Korea. Asia includes Australia, Bangladesh, Brunei, Cambodia, Mainland China, Hong Kong, India, Indonesia, Japan, Korea, Laos, Macau, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam; Africa & Middle East (AME) includes Angola, Bahrain, Botswana, Cameroon, Cote d'Ivoire, Egypt, The Gambia, Ghana, Iraq, Jordan, Kenya, Lebanon, Mauritius, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Sierra Leone, South Africa, Tanzania, the United Arab Emirates (UAE), Uganda, Zambia and Zimbabwe; and Europe & Americas (EA) includes Argentina, Brazil, Colombia, Falkland Islands, France, Germany, Ireland, Jersey, Poland, Sweden, Turkey, the UK and the US.

Within the tables in this report, blank spaces indicate that the number is not disclosed, dashes indicate that the number is zero and nm stands for not meaningful.

Standard Chartered PLC is incorporated in England and Wales with limited liability. Standard Chartered PLC is headquartered in London. The Group's head office provides guidance on governance and regulatory standards. Standard Chartered PLC stock codes are: HKSE 02888 and LSE STAN.LN

Standard Chartered PLC - first quarter 2021 results

All figures are presented on an underlying basis and comparisons are made to 2020 on a reported currency basis, unless otherwise stated. A reconciliation of restructuring and other items excluded from underlying results is set out on pages 24-29.

Bill Winters, Group Chief Executive, said:

"Our first quarter performance was strong. Economic recovery advanced in many of our markets leading to improved transaction volumes and profitability. This was particularly the case in our Financial Markets and in Wealth Management, which had its best ever quarter. Our areas of strategic focus including efforts to lead with a differentiated sustainability offering are growing well. Despite low interest rates, we expect our underlying momentum to lead to income growth in the second half of 2021."

Update on strategic priorities

•  Network: continued growth in digitally initiated transactions, up 3%pts in 1Q'21 to 44%

•  Affluent: added over 400,000 new clients in the last 12 months, with two-thirds migrating from Mass Retail

•  Mass Retail: Mox client base in Hong Kong increased 50% year-to-date to 100,000 clients

•  Sustainability: launched market-first sustainable trade finance proposition

Selected information concerning 1Q'21 financial performance

•  Income 9% lower at $3.9bn, down 3% at constant currency (ccy) and excluding a $305m reduction in DVA

Net interest margin (NIM) has broadly stabilised at 122bps, down 2bps QoQ but flat excluding 4Q'20 one-off interest credit

Other income grew 4% excluding DVA

Wealth Management, Financial Markets and balance sheet growth nearly offset $380m NII headwind from 30bps YoY drop in NIM

•  Expenses increased 6% to $2.5bn; up 4% at ccy

Mainly impact of performance-related pay normalisation, with underlying efficiencies funding higher investment

•  Credit impairment of $20m, down $936m YoY; down $354m QoQ

Stage 1 and 2: $35m net release, includes $14m overlay release. Total Stage 1 and 2 overlay now $339m

Stage 3: $55m down $450m YoY and $269m QoQ with no significant new exposures in 1Q'21

High-risk assets: reduced for the third consecutive quarter in 1Q'21, down $1.1bn in the quarter and broadly stable YoY

•  Underlying profit before tax up 18% to $1.4bn; lower impairments and business momentum more than offset impact of lower NIM

Statutory profit before tax up 59% to $1.4bn; 1Q'20 included $258m goodwill impairment

Return on tangible equity up 220bps to 10.8%

•  Tax charge of $314m: underlying effective tax rate of 22%, down 8%pts due to change in geographic mix and higher profits

•  The Group's balance sheet continues to grow and remains strong, liquid and well diversified

Customer loans and advances up 4% or $10bn since 31.12.20; customer accounts up 1%

Advances-to-deposit ratio 62.7% (31.12.20: 61.1%); liquidity coverage ratio 150% (31.12.20: 143%)

•  Risk-weighted assets (RWA) of $277bn up $7.8bn since 31.12.20

$6bn credit RWA growth: asset growth partly offset by asset mix, FX and optimisation actions. Market risk RWA up $1bn

•  The Group remains strongly capitalised and highly liquid

Common equity tier 1 ratio 14.0% at the top of the 13-14% target range (31.12.20: 14.4%)

Profit accretion 40bps offset by 50bps reduction from RWA growth, 10bps reduction from $255m share buy-back and interim ordinary dividend accrual

•  Earnings per share increased 8.1 cents or 32% to 33.5 cents

Outlook

We believe that some of our larger markets will continue to drive the global economy out of recession over the coming quarters. While the scale of the US fiscal stimulus and speed of vaccine roll-out have significantly lifted global economic prospects, we still expect the recovery to be volatile and uneven.

This positive backdrop reinforces our confidence in our previous guidance for FY'21, in particular:

•  With the net interest margin having broadly stabilised, we expect income to start growing again in 2H'21 compared to 2H'20. Income is expected to be similar in FY'21 to that achieved in FY'20 at constant currency and to return to our medium-term guidance of 5-7% growth from FY'22

•  We still expect FY'21 expenses to increase slightly compared to FY'20, as we continue to invest in our digital capabilities, but should remain below $10 billion at constant currency

•  We now expect impairment charges to reduce significantly year-on-year in FY'21 with the loan loss rate likely to be in or below our 35-40 basis point medium-term guidance range

Statement of results

 





1Q'21
$million

1Q'20
$million

Change¹
%

Underlying performance




Operating income

3,929

4,327

(9)

Operating expenses

(2,494)

(2,358)

(6)

Credit impairment

(20)

(956)

98

Other impairment

(16)

154

(110)

Profit from associates and joint ventures

47

55

(15)

Profit before taxation

1,446

1,222

18

Profit/(loss) attributable to ordinary shareholders²

1,053

810

30

Return on ordinary shareholders' tangible equity (%)

10.8

8.6

220bps

Cost to income ratio (%)

63.5

54.5

(900)bps

Statutory performance

 

 

 

Operating income

3,939

4,335

(9)

Operating expenses

(2,528)

(2,368)

(7)

Credit impairment

(17)

(962)

98

Goodwill impairment

-

(258)

100

Other impairment

(28)

92

(130)

Profit from associates and joint ventures

47

47

-

Profit before taxation

1,413

886

59

Taxation

(314)

(369)

15

Profit for the period

1,099

517

113

Profit/(loss) attributable to parent company shareholders

1,092

510

114

Profit/(loss) attributable to ordinary shareholders2

1,027

477

115

Return on ordinary shareholders' tangible equity (%)

10.6

5.1

550bps

Cost to income ratio (%)

64.2

54.6

(960)bps

Balance sheet and capital

 

 

 

Total assets

804,903

764,916

5

Total equity

52,275

50,004

5

Average tangible equity attributable to ordinary shareholders2

39,464

37,927

4

Loans and advances to customers

292,084

271,234

8

Customer accounts

441,684

422,192

5

Risk weighted assets

276,670

272,653

1

Total capital

58,531

53,458

9

Total capital (%)

21.2

19.6

160bps

Common Equity Tier 1

38,711

36,467

6

Common Equity Tier 1 ratio (%)

14.0

13.4

60bps

Net Interest Margin (%) (adjusted)

1.22

1.52

(30)bps

Advances-to-deposits ratio (%)3

62.7

61.9

0.8

Liquidity coverage ratio (%)

150

142

8

UK leverage ratio (%)

5.1

4.9

20bps

Information per ordinary share

Cents

Cents

Cents

Earnings per share - underlying4

33.5

25.4

8.1

  - statutory4

32.6

15.0

17.7

Net asset value per share5

1,433

1,357

76

Tangible net asset value per share5

1,270

1,201

69

Number of ordinary shares at period end (millions)

3,118

3,147

(1)

1   Variance is better/(worse) other than assets, liabilities and risk-weighted assets

2   Profit/(loss) attributable to ordinary shareholders is after the deduction of dividends payable to the holders of non-cumulative redeemable preference shares and Additional Tier 1 securities classified as equity

3   When calculating this ratio, total loans and advances to customers excludes reverse repurchase agreements and other similar secured lending, excludes approved balances held with central banks, confirmed as repayable at the point of stress and includes loans and advances to customers held at fair value through profit and loss. Total customer accounts includes customer accounts held at fair value through profit or loss

4   Represents the underlying or statutory earnings divided by the basic weighted average number of shares

5   Calculated on period end net asset value, tangible net asset value and number of shares

Group Chief Financial Officer's review

 

The Group delivered a strong performance in the first quarter of 2021

Summary of financial performance


1Q'21
$million

1Q'20
$million

Change
%

Constant currency change¹
%

4Q'20
$million

Change
%

Constant currency change¹
%

Net interest income

1,662

1,842

(10)

(11)

1,760

(6)

(7)

Other income

2,267

2,485

(9)

(9)

1,439

58

57

Underlying operating income

3,929

4,327

(9)

(10)

3,199

23

22

Other operating expenses

(2,494)

(2,358)

(6)

(4)

(2,618)

5

6

UK bank levy

-

-

nm³

nm³

(331)

100

100

Underlying operating expenses

(2,494)

(2,358)

(6)

(4)

(2,949)

15

16

Underlying operating profit before impairment and taxation

1,435

1,969

(27)

(27)

250

nm³

nm³

Credit impairment

(20)

(956)

98

98

(374)

95

95

Other impairment

(16)

154

(110)

(110)

(82)

80

80

Profit from associates and joint ventures

47

55

(15)

(15)

14

nm³

nm³

Underlying profit/(loss) before taxation

1,446

1,222

18

19

(192)

nm³

nm³

Restructuring

(33)

(92)

64

65

(248)

87

87

Goodwill impairment

-

(258)

100

100

-

nm³

nm³

Other items

-

14

(100)

(100)

(9)

100

100

Statutory profit/(loss) before taxation

1,413

886

59

61

(449)

nm³

nm³

Taxation

(314)

(369)

15

15

(27)

nm³

nm³

Profit/(loss) for the period

1,099

517

113

116

(476)

nm³

nm³

Net interest margin (%)2

1.22

1.52

(30)

 

1.24

(2)

 

Underlying return on tangible equity (%)2

10.8

8.6

220

 

(4.3)

1,510

 

Underlying earnings per share (cents)

33.5

25.4

32

 

(13.5)

nm³

 

Statutory return on tangible equity (%)2

10.6

5.1

550

 

(6.2)

1,680

 

Statutory earnings per share (cents)

32.6

15.0

117

 

(19.4)

nm³

 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Change is the basis points (bps) difference between the two periods rather than the percentage change

3 Not meaningful

The Group delivered a strong performance in the first quarter of 2021 with underlying profit before tax improving 18 per cent.  Positive business momentum, very low credit impairment charges and operating cost efficiencies more than offset the impact of lower interest rates, a $305 million reduction in the debit valuation adjustment (DVA) and increased investment. Income declined 3 per cent excluding DVA and on a constant currency basis, with a record performance in Wealth Management as well as 4 per cent growth in Loans and Advances to Customers in the quarter nearly offsetting the impact of a 30 basis point decline in net interest margin. Expenses increased 4 per cent at constant currency mainly due to the normalisation of performance-related pay accruals, with underlying cost efficiencies funding an increase in investments. Credit impairment charges were exceptionally low reflecting the improving economic backdrop. The Group remains well capitalised and highly liquid with a CET1 ratio of 14.0 per cent - at the top end of the 13 to 14 per cent target range - an advances-to-deposits ratio of 62.7 per cent and a liquidity coverage ratio of 150 per cent.

All commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2020 on a reported currency basis, unless otherwise stated.

•  Operating income declined 9 per cent and was down 3 per cent on a constant currency basis and excluding a $305 million reduction in DVA. The impact of lower interest rates was partially offset by balance sheet growth and strong performances in Wealth Management and Financial Markets, excluding the reduction in DVA

•  Net interest income decreased 10 per cent with a 9 per cent increase in average interest earning assets more than offset by a 20 per cent (30 basis points) decline in net interest margin

•  Other income decreased 9 per cent, but was up 4 per cent excluding the negative impact of movements in DVA, with a particularly strong performance in Wealth Management partially offset by lower Treasury realisation gains

•  Operating expenses were up 6 per cent and up 4 per cent on a constant currency basis, with performance-related pay accruals normalising and increased investment into transformational digital initiatives. The cost-to-income ratio excluding DVA increased 5 percentage points to 63 per cent, due to the impact of the significantly lower interest rate environment on net interest income

•  Credit impairment declined by $936 million to $20 million. There was a $35 million release in Stage 1 and 2 impairments reflecting the impact of improvements in the macroeconomic variables incorporated into expected credit loss models, additional collateral received on a few credit grade 12 clients and a $14 million release of the judgemental management overlay relating to stage 1 and 2 loans. Impairments of Stage 3 assets of $55 million were down $450m, with no significant new exposures in the quarter

•  Other impairment increased by $170 million with the non-repeat of a $165 million release in 1Q'20 and a $16 million charge in the quarter primarily in relation to the aviation lease portfolio

•  Profit from associates and joint ventures was down 15 per cent to $47 million primarily reflecting the reduction in the Group's shareholding in China Bohai Bank from 19.99 per cent in 1Q'20 to 16.26 per cent

•  Charges relating to restructuring, goodwill impairment and other items decreased $303 million to $33 million, with lower restructuring costs and a non-repeat of $258 million goodwill impairment primarily in India booked in 1Q'20

•  Taxation was $314 million on a statutory basis, with an underlying year-to-date effective tax rate of 22 per cent down from the prior year rate of 30 per cent reflecting a change in the geographic mix of profits and higher profits diluting the impact of non-deductible costs and withholding tax

•  Underlying return on tangible equity increased by 220 basis points to 10.8 per cent due to higher profits partly offset by increased tangible equity reflecting profit accretion and the impact of favourable FX movements on the translation reserve

Operating income by product


1Q'21
$million

1Q'20
$million

Change
%

Constant currency change¹
%

4Q'20
$million

Change
%

Constant currency change¹
%

Transaction Banking

643

800

(20)

(20)

652

(1)

(2)

Trade

277

260

7

7

249

11

11

Cash Management

366

540

(32)

(33)

403

(9)

(10)

Financial Markets2

1,325

1,546

(14)

(16)

963

38

36

Macro Trading3,4

677

831

(19)

(20)

441

54

53

Credit Markets3,4

441

267

65

65

414

7

6

Credit Trading

131

(25)

nm⁵

nm⁵

119

10

10

Financing Solutions & Issuance

310

292

6

6

295

5

4

Structured Finance

99

92

8

6

101

(2)

(2)

Financing & Security Services3

108

51

112

104

76

42

32

DVA

-

305

(100)

(100)

(69)

100

100

Lending & Portfolio Management2

233

205

14

13

218

7

6

Wealth Management

641

530

21

20

436

47

46

Retail Products

849

946

(10)

(12)

848

-

(1)

CCPL & other unsecured lending

320

304

5

3

303

6

5

Deposits

233

472

(51)

(51)

271

(14)

(15)

Mortgage & Auto

247

136

82

75

234

6

4

Other Retail Products

49

34

44

39

40

23

25

Treasury

257

325

(21)

(21)

92

179

176

Other

(19)

(25)

24

32

(10)

(90)

(70)

Total underlying operating income

3,929

4,327

(9)

(10)

3,199

23

22

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Following a reorganisation, there has been a reclassification of balances relating to Corporate Finance, Financial Markets and Lending & Portfolio Management including prior period numbers. There is no change in the total income

3 1Q'20 published results included $0.5 million (4Q'20: $1 million) of income within Foreign Exchange; $6 million (4Q'20: $6 million) within Rates; $(3) million (4Q'20: $1 million) within Commodities and $(1) million (4Q'20: $(1) million) within Global Credit now reported in Financing and Security Services

4 1Q'20 published results included $3 million (4Q'20: $3 million) of income in Commodities now reported in Credit Markets

5 Not meaningful

Reflecting the updated organisational structure that came into effect on 1 January 2021, the Group's Financial Markets business has been expanded and reorganised, with the Group integrating the majority of its Corporate Finance business within Financial Markets. The remaining elements of the Group's Corporate Finance business - primarily M&A Advisory - have been transferred into Lending & Portfolio Management.

Transaction Banking income was down 20 per cent. Cash Management declined 32 per cent as double-digit volume growth and increased fee income was more than offset by significant margin compression due to the lower interest rate environment. Trade increased 7 per cent due to double-digit growth in balances and increased margins benefiting from improved mix with a switch from financial institutions trade loans into corporate trade loans.

Financial Markets income declined 14 per cent but was up 7 per cent excluding the reduction in DVA. Credit Trading was up strongly compared to a $25 million loss in 1Q'20 which was due to mark-to-market movements resulting from the elevated levels of market volatility at that time. There was high single-digit growth in Structured Finance and Financing Solutions & Issuance, while positive movements in XVA resulted in a doubling of Financing & Security Services income. Macro Trading declined 19 per cent from lower FX and Rates income due to reduced client demand and lower trading gains compared to the exceptional volatility experienced in 1Q'20. This was partly offset by strong double-digit growth in Commodities which benefited from higher commodity prices.

Lending and Portfolio Management income was up 14 per cent with increased fee income, improved margins and balance sheet growth.

Wealth Management recorded a record quarter, with income up 21 per cent. There was a particularly strong sales performance in FX, equities and structured notes, supplemented by clients increasingly using digital channels, driving income excluding bancassurance up 28 per cent. Bancassurance income, which is currently around a quarter of total Wealth Management income, grew 3 per cent, despite sales being negatively impacted by reduced branch footfall due to COVID-19.

Retail Products income reduced 10 per cent on a reported basis and was down 12 per cent on a constant currency basis. Deposits income declined 51 per cent as margin compression more than offset increased volumes. Balance sheet growth and increased margins benefiting from lower funding led to 82 per cent growth across Mortgages & Auto and a 44 per cent increase in Other Retail Products. Credit Cards & Personal Loans income increased 5 per cent with increased personal loan volumes and improved margins partly offset by lower credit card spend.

Treasury income declined 21 per cent to $257 million, primarily from a $94 million reduction in realisation gains to $104 million, partly offset by a non-repeat of prior period negative movements in hedge ineffectiveness.

Profit before tax by client segment and geographic region


1Q'21
$million

1Q'20
$million

Change
%

Constant currency change¹
%

4Q'20
$million

Change
%

Constant currency change¹
%

Corporate, Commercial & Institutional Banking2

904

758

19

18

197

nm³

nm³

Consumer, Private & Business Banking2

460

270

70

73

(7)

nm³

nm³

Central & other items (segment)

82

194

(58)

(55)

(382)

121

121

Underlying profit/(loss) before taxation

1,446

1,222

18

19

(192)

nm³

nm³

Asia2

1,234

1,017

21

20

403

nm³

nm³

Africa & Middle East

190

47

nm³

nm³

(88)

nm³

nm³

Europe & Americas

233

101

131

136

(7)

nm³

nm³

Central & other items (region)

(211)

57

nm³

nm³

(500)

58

58

Underlying profit/(loss) before taxation

1,446

1,222

18

19

(192)

nm³

nm³

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Following a reorganisation, there has been an integration of segments and regions (Corporate & Institutional Banking and Commercial Banking to Corporate, Commercial & Institutional Banking; Private Banking and Retail Banking to Consumer, Private & Business Banking; Greater China & North Asia and ASEAN & South Asia to Asia) including prior period numbers

3 Not meaningful

Reflecting the updated organisational structure that came into effect on 1 January 2021, this is the first reporting period in which the Group is reporting on its new structure. The new structure results in the creation of two new client segments; Corporate, Commercial & Institutional Banking serving larger companies and institutions and Consumer, Private & Business Banking serving individual and business banking clients. From a regional perspective, Greater China & North Asia and ASEAN & South Asia have been combined to form a single Asia region.

Corporate, Commercial & Institutional Banking profit increased 19 per cent, due to lower impairments, and doubled excluding the reduction in DVA. Income declined 2 per cent excluding DVA, with a 7 per cent increase in Financial Markets more than offset by a 32 percent reduction in Cash Management due to lower interest rates.

Consumer, Private & Business Banking profit increased 70 per cent with lower impairments and lower expenses. Income increased 1 per cent, flat on a constant currency basis, as strong double-digit increases in Wealth Management and Mortgage & Auto income more than offset the impact of lower interest rates on Retail Deposits.

Central & other items (segment) profit more than halved to $82 million with income down 21 per cent reflecting lower realisation gains within Treasury.

Asia profits increased 21 per cent as lower credit impairments more than offset a 5 per cent reduction in income and a non-repeat of a $165 million other impairment recovery in 1Q'20.

Africa & Middle East profits increased four-fold due to a $204 million reduction in impairments. Income was down 11 per cent, or 8 per cent on a constant currency basis while costs increased 1 per cent on a constant currency basis.

Europe & Americas income increased 1 per cent, or 42 per cent excluding a reduction in DVA, which along with $149 million lower impairments resulted in profits more than doubling.

Central & other items (region) recorded a loss of $211 million with income declining $175 million due to lower returns paid to Treasury on the equity provided to the regions in a lower interest rate environment and increased expenses reflecting a normalisation of performance-related pay accruals.

Adjusted net interest income and margin


1Q'21
$million

1Q'20
$million

Change¹
%

4Q'20
$million

Change¹
%

Adjusted net interest income2

1,670

1,931

(14)

1,676

-

Average interest-earning assets

556,331

510,672

9

538,637

3

Average interest-bearing liabilities

509,625

464,549

10

490,778

4

 

 

 

 

 

 

Gross yield (%)3

1.85

2.95

(110)

1.99

(14)

Rate paid (%)3

0.69

1.57

(88)

0.82

(13)

Net yield (%)3

1.16

1.38

(22)

1.17

(1)

Net interest margin (%)3,4

1.22

1.52

(30)

1.24

(2)

1 Variance is better/(worse) other than assets and liabilities which is increase/(decrease)

2 Adjusted net interest income is statutory net interest income less funding costs for the trading book and financial guarantee fees on interest earning assets

3 Change is the basis points (bps) difference between the two periods rather than the percentage change

4 Adjusted net interest income divided by average interest-earning assets, annualized

Adjusted net interest income was down 14 per cent driven by a 20 per cent reduction in net interest margin to 122 basis points, falling 30 basis points year-on-year and 2 basis points compared to 4Q'20. On an underlying basis, excluding the impact of the one-off Korea interest credit in 4Q'20, the net interest margin was flat quarter-on-quarter:

•  Average interest-earning assets increased 3 per cent in the quarter, driven by increased balances in Treasury Markets, Mortgages and Trade. Gross yields declined 14 basis points compared with the average in the prior quarter due to an asset mix and the impact of lower interest rates on both the returns earned on the Treasury Markets portfolio and yields on loans and advances to customers

•  Average interest-bearing liabilities increased 4 per cent in the quarter. The deposit mix continued to improve with a reduction in Retail Products time deposits and growth in individual current accounts and corporate operating accounts. The rate paid on liabilities decreased 13 basis points compared with the average in the prior quarter reflecting interest rate movements, repricing initiatives and the improvement in the liability mix

 

Credit risk summary

Income Statement


1Q'21
$million

1Q'20
$million

Change1
%

4Q'20
$million

Change1
%

Total credit impairment

20

956

(98)

374

(95)

Of which stage 1 and 2

(35)

451

(108)

50

(170)

Of which stage 3

55

505

(89)

324

(83)

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

Balance sheet


31.03.21
$million

31.12.20
$million

Change1
%

31.03.20
$million

Change1
%

Gross loans and advances to customers2

298,297

288,312

3

277,444

8

Of which stage 1

270,367

256,437

5

247,696

9

Of which stage 2

19,212

22,661

(15)

21,979

(13)

Of which stage 3

8,718

9,214

(5)

7,769

12

 

 

 

 

 

 

Expected credit loss provisions

(6,213)

(6,613)

(6)

(6,210)

-

Of which stage 1

(486)

(534)

(9)

(416)

17

Of which stage 2

(683)

(738)

(7)

(713)

(4)

Of which stage 3

(5,044)

(5,341)

(6)

(5,081)

(1)

 

 

 

 

 

 

Net loans and advances to customers

292,084

281,699

4

271,234

8

Of which stage 1

269,881

255,903

5

247,280

9

Of which stage 2

18,529

21,923

(15)

21,266

(13)

Of which stage 3

3,674

3,873

(5)

2,688

37

 

 

 

 

 

 

Cover ratio of stage 3 before/after collateral (%)3

58 / 77

58 / 76

0 / 1

65 / 85

(7) / (12)

Credit grade 12 accounts ($million)

2,197

2,164

2

1,453

51

Early alerts ($million)

9,779

10,692

(9)

11,461

(15)

Investment grade corporate exposures (%)3

62

62

-

62

-

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

2 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $3,197 million at 31 March 2021, $2,919 million at 31 December 2020 and $2,903 million at 31 March 2020

3 Change is the percentage points difference between the two points rather than the percentage change

Asset quality remained resilient and stable in the first quarter, although the Group continues to remain alert to the continued impact of COVID-19 and the likelihood of uneven economic recovery across markets and industries.

Credit impairment was a $20 million charge in the quarter, with a $35 million release in stage 1 and 2 impairment and a $55 million charge relating to stage 3 impairment.

The $35 million release in stage 1 and 2 impairment reflects an improvement in the macroeconomic environment, additional collateral received relating to a few credit grade 12 clients and a $14 million release of the judgemental stage 1 and 2 management overlay. The management overlay is $339 million as at 31 March 2021.

Stage 3 impairments of $55 million primarily relate to higher charge-offs within Consumer, Private & Business Banking in India and Malaysia after the payment moratoria relief schemed ended with no significant new exposures within Corporate, Commercial & Institutional Banking in the quarter.

Gross stage 3 loans and advances to customers of $8.7 billion were 5 per cent lower compared to 31 December 2020 primarily due to repayments and write-offs more than offsetting new inflows, which were 76 per cent lower in Corporate, Commercial & Institutional Banking compared to the previous quarter. These credit-impaired loans represented 2.9 per cent of gross loans and advances, a decrease of 27 basis points compared to 31 December 2020.

The Stage 3 cover ratio of 58 per cent was stable compared with the position as at 31 December 2020, and the cover ratio post collateral at 77 per cent increased by a percentage point from additional collateral within Consumer, Private & Business Banking.

Credit grade 12 balances have increased 2 per cent since 31 December 2020 primarily from new inflows from Early Alert accounts.

Early Alert accounts of $9.8 billion have reduced by $0.9 billion since 31 December 2020, reflecting the net impact of downgrades into credit grade 12 and regularisations of accounts back into non-high risk categories. The Group is continuing to monitor its exposures in the Aviation, Metals & Mining and Oil & Gas sectors particularly carefully, given the unusual stresses caused by the effects of COVID-19, however rising commodity prices have eased credit pressure for certain sectors.

The proportion of investment grade corporate exposures has remained stable since 31 December 2020 at 62 per cent.

Restructuring, goodwill impairment and other items


1Q'21

1Q'20

4Q'20

Restructuring
$million

Goodwill Impairment
$million

Other items
$million

Restructuring
$million

Goodwill Impairment
$million

Other items
$million

Restructuring
$million

Goodwill Impairment
$million

Other items
$million

Operating income

10

-

-

8

-

-

(41)

-

(9)

Operating expenses

(34)

-

-

(24)

-

14

(168)

-

-

Credit impairment

3

-

-

(6)

-

-

(17)

-

-

Other impairment

(12)

-

-

(62)

(258)

-

(18)

-

-

Profit from associates and
joint ventures

-

-

-

(8)

-

-

(4)

-

-

Profit/(loss) before taxation

(33)

-

-

(92)

(258)

14

(248)

-

(9)

The Group's statutory performance is adjusted for profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent and/or exceptional transactions that are significant or material in the context of the Group's normal business earnings for the period and items which management and investors would ordinarily identify separately when assessing underlying performance period-by period.

Restructuring charges of $33 million primarily relate to redundancies and impairments on property as the Group adapts to new ways of working post-pandemic.

Balance sheet and liquidity


31.03.21
$million

31.12.20
$million

Change
%

31.03.20
$million

Change1
%

Assets

 

 

 

 

 

Loans and advances to banks

48,016

44,347

8

61,323

(22)

Loans and advances to customers

292,084

281,699

4

271,234

8

Other assets

464,803

463,004

-

432,359

8

Total assets

804,903

789,050

2

764,916

5

Liabilities

 

 

 

 

 

Deposits by banks

30,521

30,255

1

25,519

20

Customer accounts

441,684

439,339

1

422,192

5

Other liabilities

280,423

268,727

4

267,201

5

Total liabilities

752,628

738,321

2

714,912

5

Equity

52,275

50,729

3

50,004

5

Total equity and liabilities

804,903

789,050

2

764,916

5

 

 

 

 

 

 

Advances-to-deposits ratio (%)2

62.7%

61.1%

 

61.9%

 

Liquidity coverage ratio (%)

150%

143%

 

142%

 

1 Variance is increase/(decrease)comparing current reporting period to prior reporting periods

2 The Group now excludes $15,996 million held with central banks (31.12.20: $14,296 million, 31.03.20: $9,947 million) that has been confirmed as repayable at the point of stress

The Group's balance sheet remains strong, liquid and well diversified:

•  Loans and advances to customers increased 4 per cent since 31 December 2020 to $292 billion despite the impact of adverse foreign exchange movements. Buoyant corporate activity led to growth in Financing Solutions & Issuance within Financial Markets, Corporate Lending - which in part benefited from a $2 billion temporary increase in balances relating to upcoming initial public offerings - and Trade. Retail Mortgage balances grew for the fourth successive quarter

•  Customer accounts of $442 billion increased 1 per cent since 31 December 2020 with an increase in corporate operating account balances partly offset by lower retail deposits

•  Other assets were stable in the first quarter of 2021 with increased balances at central banks and investment securities offset by a reduction in derivative balances. Other liabilities increased 4 per cent from increased repurchase agreements and issued debt securities partly offset by reduced derivative liabilities

The advances-to-deposits ratio increased to 62.7 per cent from 61.1 per cent at 31 December 2020 reflecting the growth in loans and advances to customers from client demand and supportive market conditions. The point-in-time liquidity coverage ratio increased
7 percentage points to 150 per cent as a reduction in net outflows more than offset a reduction in high quality liquid assets in the period, in part reflecting improvements in the deposit mix, and remains well above the minimum regulatory requirement of 100 per cent.

Risk-weighted assets


31.03.21
$million

31.12.20
$million

Change1
%

31.03.20
$million

Change1
%

By risk type

 

 

 

 

 

Credit risk

226,789

220,441

3

223,003

2

Operational risk

27,116

26,800

1

27,803

(2)

Market risk

22,765

21,593

5

21,847

4

Total RWAs

276,670

268,834

3

272,653

1

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

Total risk-weighted assets (RWAs) increased 3 per cent or $7.8 billion since 31 December 2020 to $277 billion, broadly similar to the rate of increase in 1Q'19 and 1Q'20:

•  Credit Risk RWA increased by $6.3 billion in the first quarter to $227 billion with asset growth mostly due to increased client demand and activity partly offset by FX movements and RWA optimisation actions. Credit migration increased RWAs by $0.6bn in the quarter

•  Operational Risk RWA increased $0.3 billion primarily due to an increase in average income as measured over a rolling three-year time horizon, with higher 2020 income replacing lower 2017 income

•  Market Risk RWA increased by $1.2 billion to $23 billion due to a seasonally higher level of Financial Markets activity

Capital base and ratios


31.03.21
$million

31.12.20
$million

Change¹
%

31.03.20
$million

Change¹
%

CET1 capital

38,711

38,779

(0)

36,467

6

Additional Tier 1 capital (AT1)

6,293

5,612

12

4,620

36

Tier 1 capital

45,004

44,391

1

41,087

10

Tier 2 capital

13,527

12,657

7

12,371

9

Total capital

58,531

57,048

3

53,458

9

CET1 capital ratio (%)2

14.0

14.4

(0.4)

13.4

0.6

Total capital ratio (%)2

21.2

21.2

-

19.6

1.6

UK leverage ratio (%)2

5.1

5.2

(0.1)

4.9

0.2

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

2 Change is percentage points difference between two points rather than percentage change

The Group is well capitalised with low leverage and high levels of loss-absorbing capacity. Its capital metrics remain well above regulatory requirements.

The Group's CET1 ratio of 14.0 per cent was 43 basis points lower than at 31 December 2020, 4.1 percentage points above the Group's latest regulatory minimum of 9.9 per cent and at the top of the 13-14 per cent medium-term target range. The Group's minimum CET1 requirement decreased to 9.9 per cent from 10 per cent at 31 December 2020 as the Group's Pillar 2A requirement (which is fixed in absolute terms) was reduced by higher RWA in the period.

The primary driver of the decrease in the CET1 ratio was the increase in RWAs, principally due to balance sheet growth, which resulted in a decrease in the CET1 ratio of approximately 50 basis points which more than offset approximately 40 basis points of CET1 accretion from profits in the quarter.

The CET1 ratio was reduced by 10bps from a net reduction in fair value through other comprehensive income (FVOCI) reserves mainly relating to a reversal of prior year unrealised gains on debt securities as a result of higher market yields. The reduction in FVOCI reserves was also driven in part by Treasury realisation activities; the gains on which were reflected in profits.

The Group spent $255 million purchasing 37 million ordinary shares of $0.50 each, representing a volume-weighted average price per share of £4.92. These shares were subsequently cancelled, reducing the total issued share capital by 1.2 per cent and the CET1 ratio by 9 basis points.

The Group is accruing a provisional interim 2021 ordinary share dividend over the first half of the year which is calculated formulaically at one-third of the ordinary dividend paid in the prior year or 3 cents a share. The Group is expecting an update from the Prudential Regulation Authority before the half-year results regarding the extent to which an interim ordinary dividend can be paid.

The expiration of the prudential valuation adjustment temporary regulatory diversification benefit at the start of 2021 reduced the CET1 ratio by 5 basis points. This was offset by a 6 basis points increase in the value of the revised treatment of software assets in CET1 reflecting an increase in capitalised software assets. The total benefit to CET1 from the revised treatment of software assets is now 28 basis points. The PRA is currently consulting on the potential removal of this benefit.

The Group's UK leverage ratio of 5.1 per cent is slightly lower than the 5.2 per cent ratio as at 31 December 2020. The Group's leverage ratio remains significantly above its minimum requirement of 3.7 per cent.

Outlook

We believe that some of our larger markets will continue to drive the global economy out of recession over the coming quarters. While the scale of the US fiscal stimulus and speed of vaccine roll-out have significantly lifted global economic prospects, we still expect the recovery to be volatile and uneven.

This positive backdrop reinforces our confidence in our previous guidance for FY'21, in particular:

•  With the net interest margin having broadly stabilised, we expect income to start growing again in 2H'21 compared to 2H'20. Income is expected to be similar in FY'21 to that achieved in FY'20 at constant currency and to return to our medium-term guidance of 5-7% growth from FY'22

•  We still expect FY'21 expenses to increase slightly compared to FY'20, as we continue to invest in our digital capabilities, but should remain below $10 billion at constant currency

•  We now expect impairment charges to reduce significantly year-on-year in FY'21 with the loan loss rate likely to be in or below our 35-40 basis point medium-term guidance range

 

Andy Halford

Group Chief Financial Officer

29 April 2021

Supplementary financial information

 

Underlying performance by client segment


1Q'21

Corporate, Commercial & Institutional Banking1
$million

Consumer,
Private &
Business
Banking1
$million

Central &
other items
$million

Total
$million

Operating income

2,192

1,500

237

3,929

External

2,082

1,401

446

3,929

Inter-segment

110

99

(209)

-

Operating expenses

(1,302)

(991)

(201)

(2,494)

Operating profit before impairment losses and taxation

890

509

36

1,435

Credit impairment

30

(49)

(1)

(20)

Other impairment

(16)

-

-

(16)

Profit from associates and joint ventures

-

-

47

47

Underlying profit before taxation

904

460

82

1,446

Restructuring

1

(9)

(25)

(33)

Goodwill impairment

-

-

-

-

Other Items

-

-

-

-

Statutory profit before taxation

905

451

57

1,413

Total assets

391,048

133,333

280,522

804,903

Of which: loans and advances to customers2

194,714

130,841

21,620

347,175

loans and advances to customers

139,745

130,725

21,614

292,084

loans held at fair value through profit or loss

54,969

116

6

55,091

Total liabilities

492,999

174,556

85,073

752,628

Of which: customer accounts2

322,272

170,172

8,503

500,947

Risk-weighted assets

170,176

54,610

51,884

276,670

Underlying return on tangible equity (%)

11.2

17.8

1.7

10.8

Cost to income ratio (%)

59.4

66.1

84.8

63.5

 


1Q'20

Corporate, Commercial & Institutional Banking1
$million

Consumer,
Private &
Business
Banking1
$million

Central &
other items
$million

Total
$million

Operating income

2,544

1,483

300

4,327

External

2,547

1,207

573

4,327

Inter-segment

(3)

276

(273)

-

Operating expenses

(1,190)

(1,015)

(153)

(2,358)

Operating profit before impairment losses and taxation

1,354

468

147

1,969

Credit impairment

(749)

(198)

(9)

(956)

Other impairment

153

-

1

154

Profit from associates and joint ventures

-

-

55

55

Underlying profit before taxation

758

270

194

1,222

Restructuring

(76)

(5)

(11)

(92)

Goodwill impairment

-

-

(258)

(258)

Other Items

-

-

14

14

Statutory profit/(loss) before taxation

682

265

(61)

886

Total assets

396,393

119,901

248,622

764,916

Of which: loans and advances to customers2

190,902

117,679

13,037

321,618

loans and advances to customers

140,744

117,471

13,019

271,234

loans held at fair value through profit or loss

50,158

208

18

50,384

Total liabilities

479,796

163,619

71,497

714,912

Of which: customer accounts2

314,286

160,120

8,244

482,650

Risk-weighted assets

169,057

50,531

53,065

272,653

Underlying return on tangible equity (%)

9.1

10.4

4.5

8.6

Cost to income ratio (%)

46.8

68.4

51.0

54.5

1 Following a reorganisation, there has been an integration of Corporate & Institutional Banking and Commercial Banking to Corporate, Commercial & Institutional Banking; Private Banking and Retail Banking to Consumer, Private & Business Banking

2 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

Corporate, Commercial & Institutional Banking1


1Q'21
$million

1Q'20
$million

Change6,
%

Constant currency change5,6
%

4Q'20
$million

Change6
%

Constant currency change5,6
%

Operating income

2,192

2,544

(14)

(15)

1,820

20

20

Transaction Banking

637

795

(20)

(20)

647

(2)

(2)

Trade

271

255

6

6

244

11

12

Cash Management

366

540

(32)

(33)

403

(9)

(10)

Financial Markets2

1,325

1,546

(14)

(16)

963

38

36

Macro Trading3,4

677

831

(19)

(20)

441

54

53

Credit Markets3,4

441

267

65

65

414

7

6

Credit Trading

131

(25)

nm¹⁰

nm¹⁰

119

10

10

Financing Solutions & Issuance

310

292

6

6

295

5

4

Structured Finance

99

92

8

6

101

(2)

(2)

Financing & Security Services3

108

51

112

104

76

42

32

DVA

-

305

(100)

(100)

(69)

100

100

Lending & Portfolio Management2

233

205

14

13

218

7

6

Retail Products

1

2

(50)

(50)

2

(50)

-

Deposits

1

2

(50)

(50)

2

(50)

-

Other

(4)

(4)

-

-

(10)

60

56

Operating expenses

(1,302)

(1,190)

(9)

(8)

(1,359)

4

5

Operating profit before impairment losses and taxation

890

1,354

(34)

(35)

461

93

92

Credit impairment

30

(749)

104

104

(202)

115

115

Other impairment

(16)

153

(110)

(110)

(62)

74

75

Underlying profit before taxation

904

758

19

18

197

nm¹⁰

nm¹⁰

Restructuring

1

(76)

101

101

(129)

101

101

Statutory profit before taxation

905

682

33

32

68

nm¹⁰

nm¹⁰

Total assets

391,048

396,393

(1)

(3)

388,303

1

1

Of which: loans and advances to customers7

194,714

190,902

2

-

187,971

4

4

Total liabilities

492,999

479,796

3

1

481,042

2

3

Of which: customer accounts7

322,272

314,286

3

1

310,779

4

4

Risk-weighted assets

170,176

169,057

1

nm¹⁰

165,091

3

nm¹⁰

Underlying return on risk-weighted assets (%)8

2.2

1.8

40bps

nm¹⁰

0.5

170bps

nm¹⁰

Underlying return on tangible equity (%)8

11.2

9.1

210bps

nm¹⁰

2.3

890bps

nm¹⁰

Cost to income ratio (%)9

59.4

46.8

(12.6)

(12.4)

74.7

15.3

15.2

1 Following a reorganisation, there has been an integration of Corporate & Institutional Banking and Commercial Banking to Corporate, Commercial & Institutional Banking

2 Following a reorganisation, there has been a reclassification of balances relating to Corporate Finance, Financial Markets and Lending & Portfolio Management including prior period numbers. There is no change in the total income

3 1Q'20 published results included $0.5 million (4Q'20: $1 million) of income within Foreign Exchange; $6 million (4Q'20: $6 million) within Rates; $(3) million (4Q'20: $1 million) within Commodities and $(1) million (4Q'20: $(1) million) within Global Credit now reported in Financing and Security Services

4 1Q'20 published results included $3 million (4Q'20: $3 million) of income in Commodities now reported in Credit Markets

5 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

6 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)

7 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

8 Change is the basis points (bps) difference between the two periods rather than the percentage change

9 Change is the percentage points difference between the two periods rather than the percentage change

10     Not meaningful

Performance highlights

•  Underlying profit before tax of $904 million was up 19 per cent driven mainly by lower impairments, partially offset by higher expenses and lower income. Underlying profit doubled excluding a $305m reduction in the debit valuation adjustment (DVA)

•  Underlying operating income of $2,192 million was down 14 per cent (down 2 per cent excluding DVA) primarily as a result of lower Macro Trading income in Financial Markets, and the lower interest rate environment impacting Cash Management

•  Good balance sheet momentum with loans and advances to customers up 4 per cent since 31 December 2020

•  Risk-weighted assets up $5 billion since 31 December 2020 mainly as a result of client demand-led asset growth

•  RoTE increased to 11.2 per cent from 9.1 per cent  

 

Consumer, Private & Business Banking1


1Q'21
$million

1Q'20
$million

Change3
%

Constant currency change2,3
%

4Q'20
$million

Change3
%

Constant currency change2,3
%

Operating income

1,500

1,483

1

-

1,286

17

16

Transaction Banking

6

5

20

20

5

20

-

Trade

6

5

20

20

5

20

-

Wealth Management

641

530

21

20

436

47

46

Retail Products

848

944

(10)

(12)

846

-

(1)

CCPL & other unsecured lending

320

304

5

3

303

6

5

Deposits

232

470

(51)

(51)

269

(14)

(15)

Mortgage & Auto

247

136

82

75

234

6

4

Other Retail Products

49

34

44

39

40

23

25

Other

5

4

25

25

(1)

nm⁷

nm⁷

Operating expenses

(991)

(1,015)

2

4

(1,129)

12

13

Operating profit before impairment losses and taxation

509

468

9

8

157

nm⁷

nm⁷

Credit impairment

(49)

(198)

75

76

(155)

68

69

Other impairment

-

-

nm⁷

nm⁷

(9)

100

100

Underlying profit/(loss) before taxation

460

270

70

73

(7)

nm⁷

nm⁷

Restructuring

(9)

(5)

(80)

(80)

(43)

79

80

Statutory profit/(loss) before taxation

451

265

70

72

(50)

nm⁷

nm⁷

Total assets

133,333

119,901

11

7

131,783

1

3

Of which: loans and advances to customers4

130,841

117,679

11

7

129,230

1

3

Total liabilities

174,556

163,619

7

3

177,709

(2)

(1)

Of which: customer accounts4

170,172

160,120

6

3

173,506

(2)

(1)

Risk-weighted assets

54,610

50,531

8

nm⁷

53,093

3

nm⁷

Underlying return on risk-weighted assets (%)5

3.4

2.1

130bps

nm⁷

(0.1)

350bps

nm⁷

Underlying return on tangible equity (%)5

17.8

10.4

740bps

nm⁷

(0.2)

1,800bps

nm⁷

Cost to income ratio (%)6

66.1

68.4

2.3

2.6

87.8

21.7

21.9

1 Following a reorganisation, there has been an integration of Private Banking and Retail Banking to Consumer, Private & Business Banking

2 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

3 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)

4 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

5 Change is the basis points (bps) difference between the two periods rather than the percentage change

6 Change is the percentage points difference between the two periods rather than the percentage change

7 Not meaningful

Performance highlights

•  Underlying profit before tax of $460 million was up 70 per cent driven by higher income, lower expenses and lower credit impairments

•  Underlying operating income of $1,500 million was up 1 per cent (flat on a constant currency basis) as strong double-digit increases in Wealth Management and Mortgage & Auto income more than offset the impact of lower interest rates on Retail Deposits

•  Loans and advances to customers were up 1 per cent and up 3 per cent on a constant currency basis since 31 December 2020

•  RoTE increased from 10.4 per cent to 17.8 per cent 

 

Central & other items (segment)


1Q'21
$million

1Q'20
$million

Change2
%

Constant currency change1,2
%

4Q'20
$million

Change2
%

Constant currency change1,2
%

Operating income

237

300

(21)

(21)

93

155

157

Treasury

257

325

(21)

(21)

92

179

176

Other

(20)

(25)

20

28

1

nm⁶

nm⁶

Operating expenses

(201)

(153)

(31)

(22)

(461)

56

57

Operating profit/(loss) before impairment losses and taxation

36

147

(76)

(73)

(368)

110

110

Credit impairment

(1)

(9)

89

83

(17)

94

94

Other impairment

-

1

(100)

(100)

(11)

100

100

Profit from associates and joint ventures

47

55

(15)

(15)

14

nm⁶

nm⁶

Underlying profit/(loss) before taxation

82

194

(58)

(55)

(382)

121

121

Restructuring

(25)

(11)

(127)

(108)

(76)

67

67

Goodwill impairment

-

(258)

100

100

-

nm⁶

nm⁶

Other items

-

14

(100)

(100)

(9)

100

100

Statutory profit/(loss) before taxation

57

(61)

193

183

(467)

112

112

Total assets

280,522

248,622

13

11

268,964

4

5

Of which: loans and advances to customers3

21,620

13,037

66

57

19,075

13

15

Total liabilities

85,073

71,497

19

18

79,570

7

8

Of which: customer accounts3

8,503

8,244

3

2

7,869

8

10

Risk-weighted assets

51,884

53,065

(2)

nm⁶

50,650

2

nm⁶

Underlying return on risk-weighted assets (%)4

0.6

1.5

(90)bps

nm⁶

(3.1)

370bps

nm⁶

Underlying return on tangible equity (%)4

1.7

4.5

(280)bps

nm⁶

(29.8)

3,150bps

nm⁶

Cost to income ratio (%) (excluding UK bank levy)5

84.8

51.0

(33.8)

(29.5)

139.8

55.0

60.7

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)

3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

4 Change is the basis points (bps) difference between the two periods rather than the percentage change

5 Change is the percentage points difference between the two periods rather than the percentage change

6 Not meaningful

Performance highlights

•  Underlying profit before tax more than halved to $82 million with income down 21 per cent reflecting lower realisation gains within Treasury

•  Expenses increased 31 per cent with performance-related pay accruals normalising

•  Profit from associates and joint ventures was down 15 per cent primarily reflecting the reduction in the Group's shareholding in China Bohai Bank from 19.99 per cent in 1Q'20 to 16.26 per cent

 

Underlying performance by region


1Q'21

Asia1
$million

 Africa &
Middle East
$million

Europe &
Americas
$million

Central &
other items
$million

Total
$million

Operating income

2,817

590

550

(28)

3,929

Operating expenses

(1,572)

(393)

(366)

(163)

(2,494)

Operating profit/(loss) before impairment losses and taxation

1,245

197

184

(191)

1,435

Credit impairment

(58)

(7)

47

(2)

(20)

Other impairment

-

-

2

(18)

(16)

Profit from associates and joint ventures

47

-

-

-

47

Underlying profit/(loss) before taxation

1,234

190

233

(211)

1,446

Restructuring

(5)

(1)

(19)

(8)

(33)

Goodwill impairment

-

-

-

-

-

Other items

-

-

-

-

-

Statutory profit/(loss) before taxation

1,229

189

214

(219)

1,413

Total assets

468,748

57,618

269,560

8,977

804,903

Of which: loans and advances to customers2

247,424

28,548

71,203

-

347,175

loans and advances to customers

235,572

27,110

29,402

-

292,084

loans held at fair value through profit or loss

11,852

1,438

41,801

-

55,091

Total liabilities

418,288

39,102

224,097

71,141

752,628

Of which: customer accounts2

334,908

31,465

134,574

-

500,947

Risk-weighted assets

178,541

50,640

49,848

(2,359)

276,670

Cost to income ratio (%)

55.8

66.6

66.5

nm³

63.5

 


1Q'20

Asia1
$million

 Africa &
Middle East
$million

Europe &
Americas
$million

Central &
other items
$million

Total
$million

Operating income

2,973

661

546

147

4,327

Operating expenses

(1,525)

(403)

(343)

(87)

(2,358)

Operating profit before impairment losses and taxation

1,448

258

203

60

1,969

Credit impairment

(649)

(211)

(102)

6

(956)

Other impairment

165

-

-

(11)

154

Profit from associates and joint ventures

53

-

-

2

55

Underlying profit before taxation

1,017

47

101

57

1,222

Restructuring

(50)

(7)

(14)

(21)

(92)

Goodwill impairment

-

-

-

(258)

(258)

Other items

-

-

-

14

14

Statutory profit/(loss) before taxation

967

40

87

(208)

886

Total assets

456,691

63,555

233,572

11,098

764,916

Of which: loans and advances to customers2

222,593

32,338

66,687

-

321,618

loans and advances to customers

212,150

30,344

28,740

-

271,234

loans held at fair value through profit or loss

10,443

1,994

37,947

-

50,384

Total liabilities

397,747

37,875

238,508

40,782

714,912

Of which: customer accounts2

312,244

30,059

140,347

-

482,650

Risk-weighted assets

177,754

51,414

45,944

(2,459)

272,653

Cost to income ratio (%)

51.3

61.0

62.8

59.2

54.5

1 Following a reorganisation, there has been an integration of Greater China & North Asia and ASEAN & South Asia to Asia

2 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

3 Not meaningful

 

Asia1


1Q'21
$million

1Q'20
$million

Change3
%

Constant currency change2,3
%

4Q'20
$million

Change3
%

Constant currency change2,3
%

Operating income

2,817

2,973

(5)

(7)

2,357

20

19

Operating expenses

(1,572)

(1,525)

(3)

-

(1,729)

9

10

Operating profit before impairment losses and taxation

1,245

1,448

(14)

(15)

628

98

100

Credit impairment

(58)

(649)

91

91

(200)

71

71

Other impairment

-

165

(100)

(100)

(40)

100

100

Profit from associates and joint ventures

47

53

(11)

(11)

15

nm⁶

nm⁶

Underlying profit before taxation

1,234

1,017

21

20

403

nm⁶

nm⁶

Restructuring

(5)

(50)

90

90

(62)

92

92

Other items

-

-

nm⁶

nm⁶

(8)

100

100

Statutory profit before taxation

1,229

967

27

26

333

nm⁶

nm⁶

Total assets

468,748

456,691

3

-

467,212

-

2

Of which: loans and advances to customers4

247,424

222,593

11

7

239,092

3

5

Total liabilities

418,288

397,747

5

2

421,711

(1)

-

Of which: customer accounts4

334,908

312,244

7

4

334,623

-

1

Risk-weighted assets

178,541

177,754

-

nm6

174,283

2

nm6

Cost to income ratio (%)5

55.8

51.3

(4.5)

(4.2)

73.4

17.6

18.0

1 Following a reorganisation, there has been an integration of Greater China & North Asia and ASEAN & South Asia to Asia

2 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

3 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)

4 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

5 Change is the percentage points difference between the two periods rather than the percentage change

6 Not meaningful

Performance highlights

•  Underlying profit before tax of $1,234 million was up 21 per cent as significantly lower credit impairments more than offset lower income and a non-repeat of a $165 million other impairment recovery in 1Q'20

•  Underlying operating income of $2,817 million was down 5 per cent, predominantly driven by lower Financial Markets income and the impact of lower interest rates. This was partially offset by a strong performance in Wealth Management and Mortgages & Auto

•  Loans and advances to customers were up 3 per cent since 31 December 2020, primarily in Hong Kong, Singapore, China and Korea

•  Risk-weighted assets were up $4 billion since 31 December 2020, mainly from client demand-led asset growth

 

Africa & Middle East


1Q'21
$million

1Q'20
$million

Change2
%

Constant currency change1,2
%

4Q'20
$million

Change2
%

Constant currency change1,2
%

Operating income

590

661

(11)

(8)

519

14

12

Operating expenses

(393)

(403)

2

(1)

(464)

15

12

Operating profit before impairment losses and taxation

197

258

(24)

(23)

55

nm⁵

161

Credit impairment

(7)

(211)

97

97

(130)

95

95

Other impairment

-

-

nm⁵

nm⁵

(13)

100

100

Underlying profit/(loss) before taxation

190

47

nm⁵

nm⁵

(88)

nm⁵

nm⁵

Restructuring

(1)

(7)

86

86

(68)

99

99

Statutory profit/(loss) before taxation

189

40

nm⁵

nm⁵

(156)

nm⁵

nm⁵

Total assets

57,618

63,555

(9)

(11)

58,069

(1)

(1)

Of which: loans and advances to customers3

28,548

32,338

(12)

(13)

29,413

(3)

(3)

Total liabilities

39,102

37,875

3

1

39,980

(2)

(2)

Of which: customer accounts3

31,465

30,059

5

2

32,106

(2)

(2)

Risk-weighted assets

50,640

51,414

(2)

nm5

51,149

(1)

nm5

Cost to income ratio (%)4

66.6

61.0

(5.6)

(6.3)

89.4

22.8

18.8

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)

3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

4 Change is the percentage points difference between the two periods rather than the percentage change

5 Not meaningful

Performance highlights

•  Underlying profit before tax of $190 million was more than four times higher, mainly driven by significantly reduced credit impairments, particularly in UAE which has returned to profitability, and a 2 per cent reduction in expenses with efficiency actions funding ongoing strategic investments

•  Underlying operating income of $590 million was 11 per cent lower (down 8 per cent on a constant currency basis and excluding the debit valuation adjustment), mainly due to the impact of lower interest rates, partly offset by growth in Wealth Management income

•  Loans and advances to customers were down 3 per cent and customer accounts were down 2 per cent since 31 December 2020

•  Risk-weighted assets were down 1 per cent since 31 December 2020  

 

Europe & Americas


1Q'21
$million

1Q'20
$million

Change2
%

Constant currency change1,2
%

4Q'20
$million

Change2
%

Constant currency change1,2
%

Operating income

550

546

1

-

404

36

36

Operating expenses

(366)

(343)

(7)

(4)

(362)

(1)

1

Operating profit before impairment losses and taxation

184

203

(9)

(8)

42

nm⁵

nm⁵

Credit impairment

47

(102)

146

147

(44)

nm⁵

nm⁵

Other impairment

2

-

nm⁵

nm⁵

(5)

140

140

Underlying profit/(loss) before taxation

233

101

131

136

(7)

nm⁵

nm⁵

Restructuring

(19)

(14)

(36)

(36)

(27)

30

30

Statutory profit/(loss) before taxation

214

87

146

152

(34)

nm⁵

nm⁵

Total assets

269,560

233,572

15

15

253,438

6

7

Of which: loans and advances to customers3

71,203

66,687

7

5

67,771

5

5

Total liabilities

224,097

238,508

(6)

(7)

211,840

6

6

Of which: customer accounts3

134,574

140,347

(4)

(5)

125,425

7

7

Risk-weighted assets

49,848

45,944

8

nm5

45,758

9

nm5

Cost to income ratio (%)4

66.5

62.8

(3.7)

(2.8)

89.6

23.1

24.6

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)

3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

4 Change is the percentage points difference between the two periods rather than the percentage change

5 Not meaningful

Performance highlights

•  Underlying profit before tax of $233 million more than doubled, predominantly driven by reduced credit impairment

•  Underlying operating income of $550 million was up 1 per cent and up 42 per cent excluding the debit valuation adjustment

•  Loans and advances to customers grew 5 per cent since 31 December 2020 while customer accounts grew 7 per cent

 

Central & other items (region)


1Q'21
$million

1Q'20
$million

Change²
%

Constant currency change1,2
%

4Q'20
$million

Change²
%

Constant currency change1,2
%

Operating income

(28)

147

(119)

(119)

(81)

65

65

Operating expenses

(163)

(87)

(87)

(60)

(394)

59

60

Operating profit/(loss) before impairment losses and taxation

(191)

60

nm⁴

nm⁴

(475)

60

61

Credit impairment

(2)

6

(133)

(133)

-

nm⁴

nm⁴

Other impairment

(18)

(11)

(64)

(64)

(24)

25

22

Profit from associates and joint ventures

-

2

(100)

(100)

(1)

100

nm⁴

Underlying profit/(loss) before taxation

(211)

57

nm⁴

nm⁴

(500)

58

58

Restructuring

(8)

(21)

62

62

(91)

91

91

Goodwill impairment

-

(258)

100

100

-

nm⁴

nm⁴

Other items

-

14

(100)

(100)

(1)

100

nm⁴

Statutory profit/(loss) before taxation

(219)

(208)

(5)

1

(592)

63

63

Total assets

8,977

11,098

(19)

(20)

10,331

(13)

(13)

Total liabilities

71,141

40,782

74

74

64,790

10

10

Risk-weighted assets

(2,359)

(2,459)

4

nm⁴

(2,356)

-

nm⁴

Cost to income ratio (%) (excluding UK bank levy)3

nm⁴

59.2

nm⁴

nm⁴

(77.8)

nm⁴

nm⁴

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)

3 Change is the percentage points difference between the two periods rather than the percentage change

4 Not meaningful

Performance highlights

•  Underlying loss before tax of $211 million compared to 1Q'20 profit of $57 million due to lower returns paid to Treasury on the equity provided to the regions in a lower interest rate environment and increased expenses reflecting a normalisation of performance-related pay accruals

 

Underlying performance by key market


1Q'21

Hong Kong
$million

Korea
$million

China
$million

Singapore
$million

India
$million

Indonesia
$million

UAE
$million

UK
$million

US
$million

Operating income

949

284

301

457

312

62

137

297

192

Operating expenses

(475)

(185)

(172)

(238)

(167)

(42)

(92)

(174)

(140)

Operating profit before impairment losses and taxation

474

99

129

219

145

20

45

123

52

Credit impairment

(26)

13

(1)

35

(34)

(11)

(2)

33

15

Other impairment

-

-

-

-

-

-

-

2

-

Profit from associates and joint ventures

-

-

47

-

-

-

-

-

-

Underlying profit before taxation

448

112

175

254

111

9

43

158

67

Total assets employed

173,384

66,241

39,410

88,630

29,872

4,912

19,891

183,074

70,427

Of which: loans and advances to customers1

83,293

42,453

18,364

54,863

14,875

2,331

9,962

48,339

18,327

Total liabilities employed

162,760

57,624

35,088

85,059

21,849

3,508

13,374

142,130

69,128

Of which: customer accounts1

135,436

46,191

25,614

64,030

16,059

2,477

10,352

87,044

39,342

Cost to income ratio (%)

50.1

65.1

57.1

52.1

53.5

67.7

67.2

58.6

72.9

 


1Q'20

Hong Kong
$million

Korea
$million

China
$million

Singapore
$million

India
$million

Indonesia
$million

UAE
$million

UK
$million

US
$million

Operating income

957

322

275

375

409

144

159

330

171

Operating expenses

(482)

(172)

(161)

(239)

(163)

(44)

(103)

(166)

(140)

Operating profit before impairment losses and taxation

475

150

114

136

246

100

56

164

31

Credit impairment

(96)

(11)

(83)

(287)

(95)

(14)

(116)

(75)

(27)

Other impairment

(1)

-

-

-

-

-

-

-

-

Profit from associates and joint ventures

-

-

53

-

-

-

-

-

-

Underlying profit/(loss) before taxation

378

139

84

(151)

151

86

(60)

89

4

Total assets employed

167,075

58,127

36,293

90,950

31,807

5,152

22,432

148,466

73,973

Of which: loans and advances to customers1

75,306

34,550

16,230

47,018

16,606

2,398

10,731

41,134

21,456

Total liabilities employed

149,659

50,560

29,270

90,360

21,853

3,468

14,626

158,123

70,635

Of which: customer accounts1

122,450

40,874

22,355

67,170

14,520

2,010

11,793

94,480

40,637

Cost to income ratio (%)

50.4

53.4

58.5

63.7

39.9

30.6

64.8

50.3

81.9

1 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

 

Quarterly underlying operating income by product


1Q'21
$million

4Q'20
$million

3Q'20
$million

2Q'20
$million

1Q'20
$million

4Q'19
$million

3Q'19
$million

2Q'19
$million

Transaction Banking

643

652

665

721

800

834

887

901

Trade

277

249

255

230

260

259

282

282

Cash Management

366

403

410

491

540

575

605

619

Financial Markets1

1,325

963

1,189

1,236

1,546

1,038

1,147

1,092

Macro Trading2,3

677

441

522

760

831

458

463

482

Credit Markets2,3

441

414

464

476

267

376

427

374

Credit Trading

131

119

129

181

(25)

83

110

83

Financing Solutions & Issuance

310

295

335

295

292

293

317

291

Structured Finance

99

101

101

88

92

160

96

106

Financing & Security Services2

108

76

124

113

51

116

147

119

DVA

-

(69)

(22)

(201)

305

(72)

14

11

Lending & Portfolio Management1

233

218

226

235

205

207

212

211

Wealth Management

641

436

568

434

530

415

488

511

Retail Products

849

848

859

913

946

960

975

976

CCPL & other unsecured lending

320

303

309

295

304

311

315

320

Deposits

233

271

301

413

472

484

510

501

Mortgage & Auto

247

234

211

169

136

130

123

129

Other Retail Products

49

40

38

36

34

35

27

26

Treasury

257

92

40

178

325

196

335

251

Other

(19)

(10)

(28)

3

(25)

(53)

(66)

(59)

Total underlying operating income

3,929

3,199

3,519

3,720

4,327

3,597

3,978

3,883

1 Following a reorganisation, there has been a reclassification of balances relating to Corporate Finance, Financial Markets and Lending & Portfolio Management including prior period numbers. There is no change in the total income

2 1Q'20 published results included $0.5 million (4Q'20: $1 million, 3Q'20: $0.5 million, 2Q'20: $(2) million, 4Q'19: $2 million, 3Q'19: $2 million, 2Q'19: $(1) million) of income within Foreign exchange; $6 million (4Q'20: $6 million, 3Q'20: $1 million, 2Q'20: $3 million, 4Q'19: -, 3Q'19: $7 million, 2Q'19: $1 million) within Rates; $(3) million (4Q'20: $1 million, 3Q'20: $1 million, 2Q'20: -, 4Q'19: $2 million, 3Q'19: -, 2Q'19: $(2) million) within Commodities and $(1) million (4Q'20: $(1) million, 3Q'20: $(1) million, 2Q'20: $5 million, 4Q'19: $2 million, 3Q'19: $6 million, 2Q'19: $(1) million) within Global Credit which is now reported within Financing and Security Services

3 1Q'20 published results included $3 million (4Q'20: $3 million, 3Q'20: $4 million, 2Q'20: $2 million, 4Q'19: $3 million, 3Q'19: $3 million, 2Q'19: $4 million) of income in Commodities now reported in Credit Markets

 

Earnings per ordinary share


1Q'21
$million

1Q'20
$million

Change
%

4Q'20
$million

Change
%

Profit/(loss) for the period attributable to equity holders

1,099

517

113

(476)

nm¹

Non-controlling interest

(7)

(7)

-

(2)

nm¹

Dividend payable on preference shares and AT1 classified as equity

(65)

(33)

(97)

(132)

51

Profit/(loss) for the period attributable to ordinary shareholders

1,027

477

115

(610)

nm¹

 

 

 

 

 

 

Items normalised:

 

 

 

 

 

Provision for regulatory matters

-

(14)

nm¹

-

nm¹

Restructuring

33

92

(64)

248

(87)

Profit from associates and joint ventures

-

-

nm¹

-

nm¹

Gains arising on repurchase of subordinated liabilities

-

-

nm¹

-

nm¹

Goodwill impairment

-

258

nm¹

-

nm¹

Net Gain on sale of Businesses

-

-

nm¹

9

nm¹

Tax on normalised items

(7)

(3)

(133)

(72)

90

Underlying profit/(loss)

1,053

810

30

(425)

nm¹

 

 

 

 

 

 

Basic - Weighted average number of shares (millions)

3,146

3,186

nm¹

3,152

nm¹

Diluted - Weighted average number of shares (millions)

3,200

3,218

nm¹

3,196

nm¹

 

 

 

 

 

 

Basic earnings per ordinary share (cents)²

32.6

15.0

17.6

(19.4)

52.0

Diluted earnings per ordinary share (cents)²

32.1

14.8

17.3

(19.1)

51.2

Underlying basic earnings per ordinary share (cents)²

33.5

25.4

8.1

(13.5)

47.0

Underlying diluted earnings per ordinary share (cents)²

32.9

25.2

7.7

(13.3)

46.2

1 Not meaningful

2 Change is the percentage points difference between the two periods rather than the percentage change

 

Return on Tangible Equity


1Q'21
$million

1Q'20
$million

Change
%

4Q'20
$million

Change
%

Average parent company Shareholders' Equity

46,026

44,511

3

45,814

-

Less Preference share premium

(1,494)

(1,494)

-

(1,494)

-

Less Average intangible assets

(5,068)

(5,090)

-

(4,990)

(2)

Average Ordinary Shareholders' Tangible Equity

39,464

37,927

4

39,330

-

 

 

 

 

 

 

Profit/(loss) for the period attributable to equity holders

1,099

517

113

(476)

nm¹

Non-controlling interests

(7)

(7)

-

(2)

nm¹

Dividend payable on preference shares and AT1 classified as equity

(65)

(33)

(97)

(132)

51

Profit/(loss) for the period attributable to ordinary shareholders

1,027

477

115

(610)

nm¹

 

 

 

 

 

 

Items normalised:

 

 

 

 

 

Provision for regulatory matters

-

(14)

nm¹

-

nm¹

Restructuring

33

92

(64)

248

(87)

Profit from associates and joint ventures

-

-

nm¹

-

nm¹

Goodwill Impairment

-

258

nm¹

-

nm¹

Net gain on sale of businesses

-

-

nm¹

9

nm¹

Tax on normalised items

(7)

(3)

(133)

(72)

90

Underlying profit for the period attributable to ordinary shareholders

1,053

810

30

(425)

nm¹

 

 

 

 

 

 

Underlying Return on Tangible Equity

10.8%

8.6%

220bps

(4.3%)

nm¹

Statutory Return on Tangible Equity

10.6%

5.1%

550bps

(6.2%)

nm¹

1 Not meaningful

Net Tangible Asset Value per Share


31.03.21
$m

31.03.20
$m

Change
%

31.12.20
$m

Change
%

Parent company shareholders' equity

46,166

44,185

4

45,886

1

Less Preference share premium

(1,494)

(1,494)

-

(1,494)

-

Less Intangible assets

(5,072)

(4,890)

(4)

(5,063)

-

Net shareholders tangible equity

39,600

37,801

5

39,329

1

 

 

 

 

 

 

Ordinary shares in issue, excluding own shares ('m)

3,118

3,147

(1)

3,150

(1)

Net Tangible Asset Value per share (c)

1,270

1,201

69

1,249

21

Underlying versus statutory results reconciliations

 

Reconciliations between underlying and statutory results are set out in the tables below:

Operating income by client segment


1Q'21

Corporate, Commercial & Institutional Banking¹
$million

Consumer,
Private &
Business
Banking¹
$million

Central &
other items
$million

Total
$million

Underlying operating income

2,192

1,500

237

3,929

Restructuring

10

-

-

10

Statutory operating income

2,202

1,500

237

3,939

 


1Q'20

Corporate, Commercial & Institutional Banking¹
$million

Consumer,
Private &
Business
Banking¹
$million

Central &
other items
$million

Total
$million

Underlying operating income

2,544

1,483

300

4,327

Restructuring

9

-

(1)

8

Statutory operating income

2,553

1,483

299

4,335

1 Following a reorganisation, there has been an integration of Corporate & Institutional Banking and Commercial Banking to Corporate, Commercial & Institutional Banking; Private Banking and Retail Banking to Consumer, Private & Business Banking

Operating income by region


1Q'21

Asia¹
$million

 Africa &
Middle East
$million

Europe &
Americas
$million

Central &
other items
$million

Total
$million

Underlying operating income

2,817

590

550

(28)

3,929

Restructuring

10

1

-

(1)

10

Statutory operating income

2,827

591

550

(29)

3,939

 


1Q'20

Asia¹
$million

 Africa &
Middle East
$million

Europe &
Americas
$million

Central &
other items
$million

Total
$million

Underlying operating income

2,973

661

546

147

4,327

Restructuring

24

3

-

(19)

8

Statutory operating income

2,997

664

546

128

4,335

1 Following a reorganisation, there has been an integration of Greater China & North Asia and ASEAN & South Asia to Asia

 

Profit before taxation (PBT)


1Q'21

Underlying
$million

Provision for regulatory
matters
$million

Restructuring
$million

Goodwill impairment
$million

Statutory
$million

Operating income

3,929

-

10

-

3,939

Operating expenses

(2,494)

-

(34)

-

(2,528)

Operating profit/(loss) before impairment losses and taxation

1,435

-

(24)

-

1,411

Credit impairment

(20)

-

3

-

(17)

Other impairment

(16)

-

(12)

-

(28)

Profit from associates and joint ventures

47

-

-

-

47

Profit/(loss) before taxation

1,446

-

(33)

-

1,413

 


1Q'20

Underlying
$million

Provision for regulatory
matters
$million

Restructuring
$million

Goodwill impairment
$million

Statutory
$million

Operating income

4,327

-

8

-

4,335

Operating expenses

(2,358)

14

(24)

-

(2,368)

Operating profit/(loss) before impairment losses and taxation

1,969

14

(16)

-

1,967

Credit impairment

(956)

-

(6)

-

(962)

Other impairment

154

-

(62)

(258)

(166)

Profit from associates and joint ventures

55

-

(8)

-

47

Profit/(loss) before taxation

1,222

14

(92)

(258)

886

 

 

Profit before taxation (PBT) by client segment


1Q'21

Corporate, Commercial & Institutional Banking1
$million

Consumer,
Private &
Business
Banking1
$million

Central &
other items
$million

Total
$million

Operating income

2,192

1,500

237

3,929

External

2,082

1,401

446

3,929

Inter-segment

110

99

(209)

-

Operating expenses

(1,302)

(991)

(201)

(2,494)

Operating profit before impairment losses and taxation

890

509

36

1,435

Credit impairment

30

(49)

(1)

(20)

Other impairment

(16)

-

-

(16)

Profit from associates and joint ventures

-

-

47

47

Underlying profit before taxation

904

460

82

1,446

Restructuring

1

(9)

(25)

(33)

Goodwill impairment

-

-

-

-

Other items

-

-

-

-

Statutory profit before taxation

905

451

57

1,413

 


1Q'20

Corporate, Commercial & Institutional Banking1
$million

Consumer,
Private &
Business
Banking1
$million

Central &
other items
$million

Total
$million

Operating income

2,544

1,483

300

4,327

External

2,547

1,207

573

4,327

Inter-segment

(3)

276

(273)

-

Operating expenses

(1,190)

(1,015)

(153)

(2,358)

Operating profit before impairment losses and taxation

1,354

468

147

1,969

Credit impairment

(749)

(198)

(9)

(956)

Other impairment

153

-

1

154

Profit from associates and joint ventures

-

-

55

55

Underlying profit before taxation

758

270

194

1,222

Restructuring

(76)

(5)

(11)

(92)

Goodwill impairment

-

-

(258)

(258)

Other items

-

-

14

14

Statutory profit/(loss) before taxation

682

265

(61)

886

1 Following a reorganisation, there has been an integration of Corporate & Institutional Banking and Commercial Banking to Corporate, Commercial & Institutional Banking; Private Banking and Retail Banking to Consumer, Private & Business Banking

 

Profit before taxation (PBT) by region


1Q'21

Asia1
$million

 Africa &
Middle East
$million

Europe &
Americas
$million

Central &
other items
$million

Total
$million

Operating income

2,817

590

550

(28)

3,929

Operating expenses

(1,572)

(393)

(366)

(163)

(2,494)

Operating profit/(loss) before impairment losses and taxation

1,245

197

184

(191)

1,435

Credit impairment

(58)

(7)

47

(2)

(20)

Other impairment

-

-

2

(18)

(16)

Profit from associates and joint ventures

47

-

-

-

47

Underlying profit/(loss) before taxation

1,234

190

233

(211)

1,446

Restructuring

(5)

(1)

(19)

(8)

(33)

Goodwill impairment

-

-

-

-

-

Other items

-

-

-

-

-

Statutory profit/(loss) before taxation

1,229

189

214

(219)

1,413

 


1Q'20

Asia1
$million

 Africa &
Middle East
$million

Europe &
Americas
$million

Central &
other items
$million

Total
$million

Operating income

2,973

661

546

147

4,327

Operating expenses

(1,525)

(403)

(343)

(87)

(2,358)

Operating profit before impairment losses and taxation

1,448

258

203

60

1,969

Credit impairment

(649)

(211)

(102)

6

(956)

Other impairment

165

-

-

(11)

154

Profit from associates and joint ventures

53

-

-

2

55

Underlying profit before taxation

1,017

47

101

57

1,222

Restructuring

(50)

(7)

(14)

(21)

(92)

Goodwill impairment

-

-

-

(258)

(258)

Other items

-

-

-

14

14

Statutory profit/(loss) before taxation

967

40

87

(208)

886

1 Following a reorganisation, there has been an integration of Greater China & North Asia and ASEAN & South Asia to Asia

 

Return on tangible equity (RoTE)


1Q'21

Corporate, Commercial & Institutional Banking1
%

Consumer,
Private &
Business
Banking1
%

Central &
Other Items
%

Total
%

Underlying RoTE

11.2

17.8

1.7

10.8

Provision for regulatory matters

-

-

-

-

Restructuring

 

 

 

 

Of which: Income

0.2

-

-

0.1

Of which: Expenses

(0.2)

(0.5)

(0.7)

(0.3)

Of which: Credit impairment

-

-

-

-

Of which: Other impairment

-

-

(0.7)

(0.1)

Of which: Profit from associates and joint ventures

-

-

-

-

Goodwill impairment

-

-

-

-

Tax on normalised items

0.1

0.1

0.3

0.1

Statutory RoTE

11.3

17.4

0.6

10.6

 


1Q'20

Corporate, Commercial & Institutional Banking1
%

Consumer,
Private &
Business
Banking1
%

Central &
Other Items
%

Total
%

Underlying RoTE

9.1

10.4

4.5

8.6

Provision for regulatory matters

-

-

0.9

0.1

Restructuring

 

 

 

 

Of which: Income

0.1

-

(0.1)

0.1

Of which: Expenses

(0.3)

(0.3)

(0.1)

(0.3)

Of which: Credit impairment

(0.1)

-

-

(0.1)

Of which: Other impairment

(1.0)

-

-

(0.7)

Of which: Profit from associates and joint ventures

-

-

(0.6)

(0.1)

Goodwill impairment

-

-

(16.5)

(2.7)

Tax on normalised items

0.4

0.2

(1.2)

0.2

Statutory RoTE

8.2

10.3

(13.1)

5.1

1 Following a reorganisation, there has been an integration of Corporate & Institutional Banking and Commercial Banking to Corporate, Commercial & Institutional Banking; Private Banking and Retail Banking to Consumer, Private & Business Banking

 

Earnings per ordinary share (EPS)


1Q'21

Underlying
$ million

Provision for regulatory matters
$ million

Restructuring
$ million

Profit from joint venture
$ million

Gains
arising on repurchase of senior and subordinated liabilities
$ million

Net Gain
on Sale of Businesses
$ million

Goodwill impairment
$ million

Tax on normalised items
$ million

Statutory
$ million

Profit for the year attributable to ordinary shareholders

1,053

-

(33)

-

-

-

-

7

1,027

Basic - Weighted average number of shares (millions)

3,146

 

 

 

 

 

 

 

3,146

Basic earnings per ordinary share (cents)

33.5

 

 

 

 

 

 

 

32.6

 


1Q'20

Underlying
$ million

Provision for regulatory matters
$ million

Restructuring
$ million

Profit from joint venture
$ million

Gains
arising on repurchase of senior and subordinated liabilities
$ million

Net Gain
on Sale of Businesses
$ million

Goodwill impairment
$ million

Tax on normalised items
$ million

Statutory
$ million

Profit for the year attributable to ordinary shareholders

810

14

(92)

-

-

-

(258)

3

477

Basic - Weighted average number of shares (millions)

3,186

 

 

 

 

 

 

 

3,186

Basic earnings per ordinary share (cents)

25.4

 

 

 

 

 

 

 

15.0

Risk review

 

Credit quality by client segment

Amortised cost

31.03.21

Banks
$million

Customers

Undrawn commitments
$million

Financial guarantees
$million

Corporate, Commercial & Institutional Banking
$million

Consumer, Private & Business Banking
$million

Central & other items
$million

Customer Total
$million

Stage 1

47,808

121,259

128,351

20,757

270,367

141,370

49,285

- Strong

37,990

68,937

122,490

20,438

211,865

122,165

31,654

- Satisfactory

9,818

52,322

5,861

319

58,502

19,205

17,631

Stage 2

222

17,059

2,150

3

19,212

10,784

3,303

- Strong

32

2,162

1,504

-

3,666

5,064

633

- Satisfactory

158

12,732

281

3

13,016

4,806

1,877

- Higher risk

32

2,165

365

-

2,530

914

793

Of which (stage 2):

 

 

 

 

 

 

 

- Less than 30 days past due

23

102

279

-

381

-

-

- More than 30 days past due

-

419

369

-

788

-

-

Stage 3, credit-impaired financial assets

-

7,212

1,504

2

8,718

1

675

Gross balance¹

48,030

145,530

132,005

20,762

298,297

152,155

53,263

Stage 1

(13)

(79)

(406)

(1)

(486)

(41)

(18)

- Strong

(6)

(20)

(319)

-

(339)

(19)

(13)

- Satisfactory

(7)

(59)

(87)

(1)

(147)

(22)

(5)

Stage 2

(1)

(483)

(200)

-

(683)

(60)

(27)

- Strong

-

(24)

(117)

-

(141)

(7)

(3)

- Satisfactory

(1)

(292)

(22)

-

(314)

(37)

(12)

- Higher risk

-

(167)

(61)

-

(228)

(16)

(12)

Of which (stage 2):

 

 

 

 

 

 

 

- Less than 30 days past due

-

(4)

(22)

-

(26)

-

-

- More than 30 days past due

-

(6)

(61)

-

(67)

-

-

Stage 3, credit-impaired financial assets

-

(4,365)

(677)

(2)

(5,044)

-

(182)

Total credit impairment

(14)

(4,927)

(1,283)

(3)

(6,213)

(101)

(227)

Net carrying value

48,016

140,603

130,722

20,759

292,084

 

 

Stage 1

0.0%

0.1%

0.3%

0.0%

0.2%

0.0%

0.0%

- Strong

0.0%

0.0%

0.3%

0.0%

0.2%

0.0%

0.0%

- Satisfactory

0.1%

0.1%

1.5%

0.3%

0.3%

0.1%

0.0%

Stage 2

0.5%

2.8%

9.3%

0.0%

3.6%

0.6%

0.8%

- Strong

0.0%

1.1%

7.8%

0.0%

3.8%

0.1%

0.5%

- Satisfactory

0.6%

2.3%

7.8%

0.0%

2.4%

0.8%

0.6%

- Higher risk

0.0%

7.7%

16.7%

0.0%

9.0%

1.8%

1.5%

Of which (stage 2):

 

 

 

 

 

 

 

- Less than 30 days past due

0.0%

3.9%

7.9%

0.0%

6.8%

0.0%

0.0%

- More than 30 days past due

0.0%

1.4%

16.5%

0.0%

8.5%

0.0%

0.0%

Stage 3, credit-impaired financial assets

0.0%

60.5%

45.0%

100.0%

57.9%

0.0%

27.0%

Cover ratio

0.0%

3.4%

1.0%

0.0%

2.1%

0.1%

0.4%

Fair value through profit or loss

 

 

 

 

 

 

 

Performing

23,650

54,926

116

6

55,048

-

-

- Strong

20,516

32,758

115

3

32,876

-

-

- Satisfactory

3,134

22,049

1

3

22,053

-

-

- Higher risk

-

119

-

-

119

-

-

Defaulted (CG13-14)

-

43

-

-

43

-

-

Gross balance (FVTPL)2

23,650

54,969

116

6

55,091

-

-

Net carrying value (incl. FVTPL)

71,666

195,572

130,838

20,765

347,175

 

 

1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $3,197 million under Customers and of $728 million under Banks, held at amortised cost

2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $45,285 million under Customers and of $20,350 million under Banks, held at fair value through profit or loss

Amortised cost

31.12.20

Banks
$million

Customers

Undrawn commitments
$million

Financial guarantees
$million

Corporate, Commercial & Institutional Banking
$million

Consumer, Private & Business Banking
$million

Central & other items
$million

Customer Total
$million

Stage 1

44,015

110,993

126,294

19,150

256,437

143,703

49,489

- Strong³

34,961

64,277

120,892

18,889

204,058

122,792

30,879

- Satisfactory³

9,054

46,716

5,402

261

52,379

20,911

18,610

Stage 2

349

20,004

2,657

-

22,661

9,698

3,573

- Strong

95

2,756

1,522

-

4,278

3,537

386

- Satisfactory

233

15,105

665

-

15,770

5,522

2,399

- Higher risk

21

2,143

470

-

2,613

639

788

Of which (stage 2):

 

 

 

 

 

 

 

- Less than 30 days past due

-

202

663

-

865

-

-

- More than 30 days past due

29

148

480

-

628

-

-

Stage 3, credit-impaired financial assets

-

7,652

1,562

-

9,214

2

770

Gross balance¹

44,364

138,649

130,513

19,150

288,312

153,403

53,832

Stage 1

(14)

(95)

(438)

(1)

(534)

(39)

(20)

- Strong³

(7)

(34)

(328)

-

(362)

(19)

(13)

- Satisfactory³

(7)

(61)

(110)

(1)

(172)

(20)

(7)

Stage 2

(3)

(487)

(251)

-

(738)

(78)

(36)

- Strong

-

(42)

(100)

-

(142)

(3)

(3)

- Satisfactory

(3)

(291)

(85)

-

(376)

(44)

(19)

- Higher risk

-

(154)

(66)

-

(220)

(31)

(14)

Of which (stage 2):

 

 

 

 

 

 

 

- Less than 30 days past due

-

(6)

(85)

-

(91)

-

-

- More than 30 days past due

-

(6)

(66)

-

(72)

-

-

Stage 3, credit-impaired financial assets

-

(4,610)

(731)

-

(5,341)

-

(194)

Total credit impairment

(17)

(5,192)

(1,420)

(1)

(6,613)

(117)

(250)

Net carrying value

44,347

133,457

129,093

19,149

281,699

 

 

Stage 1

0.0%

0.1%

0.3%

0.0%

0.2%

0.0%

0.0%

- Strong

0.0%

0.1%

0.3%

0.0%

0.2%

0.0%

0.0%

- Satisfactory

0.1%

0.1%

2.0%

0.4%

0.3%

0.1%

0.0%

Stage 2

0.9%

2.4%

9.4%

0.0%

3.3%

0.8%

1.0%

- Strong

0.0%

1.5%

6.6%

0.0%

3.3%

0.1%

0.8%

- Satisfactory

1.3%

1.9%

12.8%

0.0%

2.4%

0.8%

0.8%

- Higher risk

0.0%

7.2%

14.0%

0.0%

8.4%

4.9%

1.8%

Of which (stage 2):

 

 

 

 

 

 

 

- Less than 30 days past due

0.0%

3.0%

12.8%

0.0%

10.5%

0.0%

0.0%

- More than 30 days past due

0.0%

4.1%

13.8%

0.0%

11.5%

0.0%

0.0%

Stage 3, credit-impaired financial assets

0.0%

60.2%

46.8%

0.0%

58.0%

0.0%

25.2%

Cover ratio

0.0%

3.7%

1.1%

0.0%

2.3%

0.1%

0.5%

Fair value through profit or loss

 

 

 

 

 

 

 

Performing

22,082

54,384

135

12

54,531

-

-

- Strong

18,100

29,527

133

8

29,668

-

-

- Satisfactory

3,982

24,775

2

4

24,781

-

-

- Higher risk

-

82

-

-

82

-

-

Defaulted (CG13-14)

-

46

-

-

46

-

-

Gross balance (FVTPL)2

22,082

54,430

135

12

54,577

-

-

Net carrying value (incl. FVTPL)

66,429

187,887

129,228

19,161

336,276

 

 

1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $2,919 million under Customers and of $1,247 million under Banks, held at amortised cost

2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $45,200 million under Customers and of $18,205 million under Banks, held at fair value through profit or loss

3 FY 2020 Consumer, Private & Business Banking Stage 1 Gross: Strong restated from $119,766 million to $120,892 million and Satisfactory restated from $6,528 million to $5,402 million. FY 2020 Consumer, Private & Business Banking Stage 1 ECL: Strong restated from $307 million to $328 million and Satisfactory restated from $131 million to $110 million.

Credit impairment charge


1Q'21

1Q'20

Stage 1 & 2
$million

Stage 3
$million

Total
$million

Stage 1 & 2
$million

Stage 3
$million

Total
$million

Ongoing business portfolio

 

 

 

 

 

 

Corporate, Commercial & Institutional Banking

(27)

(3)

(30)

300

449

749

Consumer, Private & Business Banking

(10)

59

49

142

56

198

Central & Others

2

(1)

1

9

0

9

Credit impairment charge

(35)

55

20

451

505

956

 

 

 

 

 

 

 

Restructuring business portfolio

 

 

 

 

 

 

Others

(1)

(2)

(3)

0

6

6

Credit impairment charge

(1)

(2)

(3)

0

6

6

 

 

 

 

 

 

 

Total credit impairment charge

(36)

53

17

451

511

962

COVID-19 relief measures

Segment


Asia

Africa & Middle East

Europe & Americas

Outstanding
$million

% of
portfolio1

Outstanding
$million

% of
portfolio1

Outstanding
$million

% of
portfolio1

Outstanding
$million

% of
portfolio1

Credit card & Personal loans

206

1%

61

0%

145

8%

 

 

Mortgages & Auto

914

1%

899

1%

15

1%

 

 

Business Banking

168

1%

168

1%

 

 

 

 

Total Consumer, Private & Business Banking

1,288

1%

1,128

1%

160

3%

 

 

Corporate, Commercial & Institutional Banking

866

 

658

 

195

 

13

 

Total at 31 March 2021

2,154

1%

1,786

 

355

 

13

 

1 Percentage of portfolio represents the outstanding amount as a percentage of the gross loans and advances to banks and customers by product and segment and total loans and advances to banks and customers

 

Vulnerable sectors

Maximum Exposure

Amortised Cost

31.03.21

Maximum on Balance Sheet Exposure
(net of credit impairment)
$million

Collateral
$million

Net
On Balance Sheet Exposure
$million

Undrawn Commitments(net of credit impairment)
$million

Financial Guarantees(net of credit impairment)
$million

Net
Off Balance Sheet Exposure
$million

Total On & Off Balance Sheet Net Exposure
$million

Industry:

 

 

 

 

 

 

 

Aviation¹

4,273

1,923

2,350

1,363

494

1,857

4,207

Commodity Traders

9,662

196

9,466

1,537

5,015

6,552

16,018

Metals & Mining

4,151

432

3,719

3,066

837

3,903

7,622

Commercial Real Estate

18,923

7,734

11,189

5,014

293

5,307

16,496

Hotels & Tourism

2,545

1,117

1,428

1,081

105

1,186

2,614

Oil & Gas

7,176

1,070

6,106

7,847

5,319

13,166

19,272

Total

46,730

12,472

34,258

19,908

12,063

31,971

66,229

Total Corporate, Commercial & Institutional Banking

140,603

27,726

112,877

91,191

45,734

136,925

249,802

Total Consumer, Private & Business Banking and other segments

199,497

99,443

100,054

60,863

7,302

68,165

168,219

Total Group

340,100

127,169

212,931

152,054

53,036

205,090

418,021

 

Amortised Cost

31.12.20

Maximum
On Balance Sheet Exposure
(net of credit impairment)
$million

Collateral
$million

Net
On Balance Sheet Exposure
$million

Undrawn Commitments(net of credit impairment)
$million

Financial Guarantees(net of credit impairment)
$million

Net
Off Balance Sheet Exposure
$million

Total On & Off Balance Sheet Net Exposure
$million

Industry:

 

 

 

 

 

 

 

Aviation¹

3,839

2,106

1,733

1,321

531

1,852

3,585

Commodity Traders

8,664

318

8,346

2,189

4,459

6,648

14,994

Metals & Mining

3,882

513

3,369

2,850

886

3,736

7,105

Commercial Real Estate

19,090

8,004

11,086

5,283

313

5,596

16,682

Hotels & Tourism

2,557

1,110

1,447

1,185

110

1,295

2,742

Oil & Gas

7,199

1,032

6,167

8,332

5,587

13,919

20,086

Total

45,231

13,083

32,148

21,160

11,886

33,046

65,194

Total Corporate, Commercial & Institutional Banking

133,457

27,561

105,896

92,001

46,725

138,726

244,622

Total Consumer, Private & Business Banking and other segments

192,589

103,886

88,703

61,285

6,857

68,142

156,845

Total Group

326,046

131,447

194,599

153,286

53,582

206,868

401,467

1 In addition to the aviation sector loan exposures, the Group owns $3.5 billion (31 December 2020: $3.9 billion) of aircraft under operating leases.

 

Loans and advances by stage

Amortised Cost

31.03.21

Stage 1

Stage 2

Stage 3

Total

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Industry:

 

 

 

 

 

 

 

 

 

 

 

 

Aviation

2,267

(1)

2,266

1,840

(12)

1,828

241

(62)

179

4,348

(75)

4,273

Commodity Traders

9,255

(1)

9,254

266

(9)

257

810

(659)

151

10,331

(669)

9,662

Metals & Mining

3,431

(2)

3,429

646

(25)

621

211

(110)

101

4,288

(137)

4,151

Commercial Real Estate

16,631

(15)

16,616

2,069

(24)

2,045

459

(197)

262

19,159

(236)

18,923

Hotels & Tourism

1,221

(3)

1,218

1,273

(53)

1,220

155

(48)

107

2,649

(104)

2,545

Oil & Gas

5,871

(7)

5,864

1,215

(68)

1,147

340

(175)

165

7,426

(250)

7,176

Total

38,676

(29)

38,647

7,309

(191)

7,118

2,216

(1,251)

965

48,201

(1,471)

46,730

Total Corporate, Commercial & Institutional Banking

121,259

(79)

121,180

17,059

(483)

16,576

7,212

(4,365)

2,847

145,530

(4,927)

140,603

Total Consumer, Private & Business Banking and other segments

196,916

(420)

196,496

2,375

(201)

2,174

1,506

(679)

827

200,797

(1,300)

199,497

Total Group

318,175

(499)

317,676

19,434

(684)

18,750

8,718

(5,044)

3,674

346,327

(6,227)

340,100

 

Amortised Cost

31.12.20

Stage 1

Stage 2

Stage 3

Total

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total Credit Impairment
$million

Net Carrying Amount
$million

Industry:

 

 

 

 

 

 

 

 

 

 

 

 

Aviation

2,073

(1)

2,072

1,613

(26)

1,587

258

(78)

180

3,944

(105)

3,839

Commodity Traders

8,067

(3)

8,064

473

(12)

461

799

(660)

139

9,339

(675)

8,664

Metals & Mining

3,128

(3)

3,125

677

(18)

659

210

(112)

98

4,015

(133)

3,882

Commercial Real Estate

15,847

(13)

15,834

3,068

(34)

3,034

408

(186)

222

19,323

(233)

19,090

Hotels & Tourism

1,318

(2)

1,316

1,168

(18)

1,150

138

(47)

91

2,624

(67)

2,557

Oil & Gas

5,650

(7)

5,643

1,548

(69)

1,479

276

(199)

77

7,474

(275)

7,199

Total

36,083

(29)

36,054

8,547

(177)

8,370

2,089

(1,282)

807

46,719

(1,488)

45,231

Total Corporate, Commercial & Institutional Banking

110,993

(95)

110,898

20,004

(487)

19,517

7,652

(4,610)

3,042

138,649

(5,192)

133,457

Total Consumer, Private & Business Banking and other segments

189,459

(453)

189,006

3,006

(254)

2,752

1,562

(731)

831

194,027

(1,438)

192,589

Total Group

300,452

(548)

299,904

23,010

(741)

22,269

9,214

(5,341)

3,873

332,676

(6,630)

326,046

Capital review

 

Capital ratios


31.03.21

31.12.20

Change4

31.03.20

Change4

CET1

14.0%

14.4%

(0.4)

13.4%

0.6

Tier 1 capital

16.3%

16.5%

(0.2)

15.1%

1.2

Total capital

21.2%

21.2%

-

19.6%

1.6

CRD Capital base1


31.03.21
$million

31.12.20
$million

Change4
%

31.03.20
$million

Change4
%

CET1 instruments and reserves

 

 

 

 

 

Capital instruments and the related share premium accounts

5,545

5,564

-

5,564

-

Of which: share premium accounts

3,989

3,989

-

3,989

-

Retained earnings2

26,062

25,723

1

26,045

-

Accumulated other comprehensive income (and other reserves)

12,175

12,688

(4)

10,781

13

Non-controlling interests (amount allowed in consolidated CET1)

193

180

7

483

(60)

Independently reviewed interim and year-end profits

1,091

718

52

510

114

Foreseeable dividends

(573)

(481)

19

(283)

102

CET1 capital before regulatory adjustments

44,493

44,392

-

43,100

3

CET1 regulatory adjustments

 

 

 

 

 

Additional value adjustments (prudential valuation adjustments)

(641)

(490)

31

(604)

6

Intangible assets (net of related tax liability)3

(4,041)

(4,274)

(5)

(4,899)

(18)

Deferred tax assets that rely on future profitability (excludes those arising from temporary differences)

(146)

(138)

6

(133)

10

Fair value reserves related to net losses on cash flow hedges

7

52

(87)

130

(95)

Deduction of amounts resulting from the calculation of excess expected loss

(819)

(701)

17

(573)

43

Net gains on liabilities at fair value resulting from changes in own credit risk

59

52

13

(150)

(139)

Defined-benefit pension fund assets

(54)

(40)

35

(55)

(2)

Fair value gains arising from the institution's own credit risk related to derivative liabilities

(48)

(48)

-

(298)

(84)

Exposure amounts which could qualify for risk weighting of 1250%

(99)

(26)

281

(51)

94

Total regulatory adjustments to CET1

(5,782)

(5,613)

3

(6,633)

(13)

CET1 capital

38,711

38,779

-

36,467

6

Additional Tier 1 capital (AT1) instruments

6,313

5,632

12

4,640

36

AT1 regulatory adjustments

(20)

(20)

-

(20)

-

Tier 1 capital

45,004

44,391

1

41,087

10

 

 

 

 

 

 

Tier 2 capital instruments

13,557

12,687

7

12,401

9

Tier 2 regulatory adjustments

(30)

(30)

-

(30)

-

Tier 2 capital

13,527

12,657

7

12,371

9

Total capital

58,531

57,048

3

53,458

9

Total risk-weighted assets (unaudited)

276,670

268,834

3

272,653

1

1 CRD capital is prepared on the regulatory scope of consolidation

2 Retained earnings includes IFRS9 capital relief (transitional) of $294 million, including dynamic relief of $83 million

3 Deduction for intangible assets includes software deduction relief of $909 million as the CRR 'Quick Fix' measures

4 Change is the percentage point difference between the two periods, rather than percentage change

5 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

 

Movement in total capital


3 months ended 31.03.21
$million

Year ended 31.12.20
$million

CET1 at 1 January

38,779

36,513

Ordinary shares issued in the period and share premium

-

-

Share buy-back

(255)

(242)

Profit for the period

1,091

718

Foreseeable dividends deducted from CET1

(573)

(481)

Difference between dividends paid and foreseeable dividends

416

476

Movement in goodwill and other intangible assets

233

1,044

Foreign currency translation differences

(295)

700

Non-controlling interests

13

(543)

Movement in eligible other comprehensive income

(235)

324

Deferred tax assets that rely on future profitability

(8)

(9)

Decrease/(increase) in excess expected loss

(118)

121

Additional value adjustments (prudential valuation adjustment)

(151)

125

IFRS 9 transitional impact on regulatory reserves including day one

(100)

35

Exposure amounts which could qualify for risk weighting

(73)

36

Fair value gains arising from the institution's own credit risk related to derivative liabilities

-

(10)

Other

(13)

(28)

CET1 at 31 March/31 December

38,711

38,779

 

 

 

AT1 at 1 January

5,612

7,164

Net issuances (redemptions)

1,239

(995)

Foreign currency translation difference

2

8

Excess on AT1 grandfathered limit (ineligible)

(560)

(565)

AT1 at 31 March/31 December

6,293

5,612

 

 

 

Tier 2 capital at 1 January

12,657

12,288

Regulatory amortisation

(242)

(463)

Net issuances (redemptions)

645

(69)

Foreign currency translation difference

(101)

257

Tier 2 ineligible minority interest

12

82

Recognition of ineligible AT1

560

565

Other

(4)

(3)

Tier 2 capital at 31 March/31 December

13,527

12,657

Total capital at 31 March/31 December

58,531

57,048

 

 

Risk-weighted assets by business


31.03.21

Credit risk
$million

Operational risk
$million

Market risk
$million

Total risk
$million

Corporate, Commercial & Institutional Banking

130,865

16,671

22,640

170,176

Consumer, Private & Business Banking

46,183

8,427

-

54,610

Central & other items

49,741

2,018

125

51,884

Total risk-weighted assets

226,789

27,116

22,765

276,670

 


31.12.20

Credit risk
$million

Operational risk
$million

Market risk
$million

Total risk
$million

Corporate, Commercial & Institutional Banking

127,663

15,963

21,465

165,091

Consumer, Private & Business Banking

44,755

8,338

-

53,093

Central & other items

48,023

2,499

128

50,650

Total risk-weighted assets

220,441

26,800

21,593

268,834

 


31.03.20

Credit risk
$million

Operational risk
$million

Market risk
$million

Total risk
$million

Corporate, Commercial & Institutional Banking

131,366

15,963

21,728

169,057

Consumer, Private & Business Banking

42,193

8,338

-

50,531

Central & other items

49,444

3,502

119

53,065

Total risk-weighted assets

223,003

27,803

21,847

272,653

Risk-weighted assets by geographic region


31.03.21
$million

31.12.20
$million

Change1
%

31.03.20
$million

Change1
%

ASIA

178,541

174,283

2

177,754

-

Africa & Middle East

50,640

51,149

(1)

51,414

(2)

Europe & Americas

49,848

45,758

9

45,944

8

Central & other items

(2,359)

(2,356)

-

(2,459)

(4)

Total risk-weighted assets

276,670

268,834

3

272,653

1

1   Variance is increase/(decrease) comparing current reporting period to prior reporting periods

 

Movement in risk-weighted assets


Credit risk

Commercial, Corporate & Institutional Banking
$million

Consumer, Private & Business Banking
$million

Central & other items
$million

Total
$million

Operational risk
$million

Market risk
$million

Total risk
$million

At 31 December 2019

123,667

42,819

49,178

215,664

27,620

20,806

264,090

At 01 January 2020 1

123,611

42,875

49,178

215,664

27,620

20,806

264,090

Assets (decline)/growth

(9,743)

520

3,711

(5,512)

-

-

(5,512)

Asset quality

12,190

323

2,409

14,922

-

-

14,922

Risk-weighted assets efficiencies

(71)

-

-

(71)

-

-

(71)

Model, methodology and policy changes

247

134

661

1,042

-

(1,500)

(458)

Disposals

-

-

(7,859)

(7,859)

(1,003)

(159)

(9,021)

Foreign currency translation

1,429

903

(77)

2,255

-

-

2,255

Other non-credit risk movements

-

-

-

-

183

2,446

2,629

At 31 December 2020

127,663

44,755

48,023

220,441

26,800

21,593

268,834

Assets (decline)/growth

3,573

2,031

2,413

8,017

-

-

8,017

Asset quality

502

43

22

567

-

-

567

Risk-weighted assets efficiencies

-

-

(657)

(657)

-

-

(657)

Model, methodology and policy changes

-

-

-

-

-

-

-

Disposals

-

-

-

-

-

-

-

Foreign currency translation

(873)

(646)

(292)

(1,811)

-

-

(1,811)

Other non-credit risk movements

-

-

232

232

316

1,172

1,720

At 31 March 2021

130,865

46,183

49,741

226,789

27,116

22,765

276,670

1   Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. 1 January 2020 balances have been restated.

 

UK leverage ratio


31.03.21
$million

31.12.20
$million

Change3
%

31.03.20
$million

Change3
%

Tier 1 capital (transitional)

45,004

44,391

1

41,087

10

Additional Tier 1 capital subject to phase out

(557)

(1,114)

(50)

(1,114)

(50)

Tier 1 capital (end point)1

44,447

43,277

3

39,973

11

Derivative financial instruments

59,872

69,467

(14)

66,757

(10)

Derivative cash collateral

9,860

11,759

(16)

13,070

(25)

Securities financing transactions (SFTs)

69,560

67,570

3

70,269

(1)

Loans and advances and other assets

665,611

640,254

4

614,820

8

Total on-balance sheet assets

804,903

789,050

2

764,916

5

Regulatory consolidation adjustments2

(65,121)

(60,059)

8

(42,178)

54

Derivatives adjustments

 

 

 

 

 

Derivatives netting

(38,602)

(44,257)

(13)

(39,400)

(2)

Adjustments to cash collateral

(18,260)

(21,278)

(14)

(23,381)

(22)

Net written credit protection

1,999

1,284

56

1,618

24

Potential future exposure on derivatives

47,527

42,410

12

34,961

36

Total derivatives adjustments

(7,336)

(21,841)

(66)

(26,202)

(72)

Counterparty risk leverage exposure measure for SFTs

9,505

4,969

91

10,380

(8)

Off-balance sheet items

129,403

128,167

1

122,763

5

Regulatory deductions from Tier 1 capital

(5,710)

(5,521)

3

(6,184)

(8)

UK leverage exposure (end point)

865,644

834,765

4

823,495

5

UK leverage ratio (end point)4

5.1%

5.2%

(0.1)

4.9%

0.2

UK leverage exposure quarterly average

864,008

837,147

3

829,542

4

UK leverage ratio quarterly average

5.1%

5.2%

(0.1)

4.9%

0.2

Countercyclical leverage ratio buffer

0.1%

0.0%

0.1

0.1%

-

G-SII additional leverage ratio buffer

0.4%

0.4%

-

0.4%

-

1   Tier 1 Capital (end point) is adjusted only for Grandfathered Additional Tier 1 instruments

2   Includes adjustment for qualifying central bank claims

3   Variance is increase/(decrease) comparing current reporting period to prior reporting periods

4 Change is the percentage point difference two periods, rather than percentage change

 

 

Financial statements

 

Condensed consolidated interim income statement

For the three months ended 31 March 2021


3 months ended 31.03.21
$million

3 months ended 31.03.20
$million

Interest income

2,532

3,746

Interest expense

(874)

(1,907)

Net interest income

1,658

1,839

Fees and commission income

1,181

1,010

Fees and commission expense

(168)

(148)

Net fee and commission income

1,013

862

Net trading income

999

1,138

Other operating income

269

496

Operating income

3,939

4,335

Staff costs

(1,826)

(1,633)

Premises costs

(89)

(90)

General administrative expenses

(320)

(347)

Depreciation and amortisation

(293)

(298)

Operating expenses

(2,528)

(2,368)

Operating profit before impairment losses and taxation

1,411

1,967

Credit impairment

(17)

(962)

Goodwill, property, plant and equipment and other impairment

(28)

(166)

Profit from associates and joint ventures

47

47

Profit before taxation

1,413

886

Taxation

(314)

(369)

Profit for the period

1,099

517

 

 

 

Profit attributable to:

 

 

Non-controlling interests

7

7

Parent company shareholders

1,092

510

Profit for the period

1,099

517

 

 

 

 

cents

cents

Earnings per share:

 

 

Basic earnings per ordinary share

32.6

15.0

Diluted earnings per ordinary share

32.1

14.8

 

Condensed consolidated interim statement of comprehensive income

For the three months ended 31 March 2021


3 months ended 31.03.21
$million

3 months ended 31.03.20
$million

Profit for the period

1,099

517

Other comprehensive (loss)/income

 

 

Items that will not be reclassified to income statement:

177

253

Own credit (losses)/gains on financial liabilities designated at fair value through profit or loss

(9)

175

Equity instruments at fair value through other comprehensive income

117

27

Actuarial gains on retirement benefit obligations

79

83

Taxation relating to components of other comprehensive income

(10)

(32)

Items that may be reclassified subsequently to income statement:

(632)

(1,106)

Exchange differences on translation of foreign operations:

 

 

Net losses taken to equity

(414)

(1,109)

Net gains on net investment hedges

119

170

Share of other loss from associates and joint ventures

(4)

-

Debt instruments at fair value through other comprehensive income:

 

 

Net valuation (losses)/gains taken to equity

(303)

244

Reclassified to income statement

(126)

(326)

Net impact of expected credit losses

2

9

Cash flow hedges:

 

 

Net gains/(losses) taken to equity

37

(104)

Reclassified to income statement

15

4

Taxation relating to components of other comprehensive income

42

6

Other comprehensive loss for the year, net of taxation

(455)

(853)

Total comprehensive income/(loss) for the period

644

(336)

 

 

 

Total comprehensive income/(loss) attributable to:

 

 

Non-controlling interests

9

(5)

Parent company shareholders

635

(331)

Total comprehensive income/(loss) for the period

644

(336)

 

Condensed consolidated interim balance sheet

As at 31 March 2021


31.03.21
$million

31.12.20
$million

Assets

 

 

Cash and balances at central banks

72,215

66,712

Financial assets held at fair value through profit or loss

105,852

106,787

Derivative financial instruments

59,872

69,467

Loans and advances to banks

48,016

44,347

Loans and advances to customers

292,084

281,699

Investment securities

157,314

153,315

Other assets

51,890

48,688

Current tax assets

562

808

Prepayments and accrued income

2,027

2,122

Interests in associates and joint ventures

2,205

2,162

Goodwill and intangible assets

5,072

5,063

Property, plant and equipment

6,126

6,515

Deferred tax assets

895

919

Assets classified as held for sale

773

446

Total assets

804,903

789,050

 

 

 

Liabilities

 

 

Deposits by banks

30,521

30,255

Customer accounts

441,684

439,339

Repurchase agreements and other similar secured borrowing

6,107

1,903

Financial liabilities held at fair value through profit or loss

74,782

68,373

Derivative financial instruments

59,351

71,533

Debt securities in issue

60,973

55,550

Other liabilities

56,628

47,904

Current tax liabilities

538

660

Accruals and deferred income

3,702

4,546

Subordinated liabilities and other borrowed funds

16,924

16,654

Deferred tax liabilities

613

695

Provisions for liabilities and charges

431

466

Retirement benefit obligations

374

443

Total liabilities

752,628

738,321

 

 

 

Equity

 

 

Share capital and share premium account

7,039

7,058

Other reserves

12,175

12,688

Retained earnings

26,952

26,140

Total parent company shareholders' equity

46,166

45,886

Other equity instruments

5,757

4,518

Total equity excluding non-controlling interests

51,923

50,404

Non-controlling interests

352

325

Total equity

52,275

50,729

Total equity and liabilities

804,903

789,050

 

Condensed consolidated statement of changes in equity

For the three months ended 31 March 2021


Ordinary share capital and share premium account
$million

Preference share capital and share premium account
$million

Capital and merger reserves1
$million

Own credit adjustment reserve
$million

Fair value through other compre-hensive income reserve - debt
$million

Fair value through other compre-hensive income reserve - equity
$million

Cash flow hedge reserve
$million

Translation reserve
$million

Retained earnings
$million

Parent company share-holders' equity
$million

Other equity instru-ments
$million

Non-controlling interests
$million

Total
$million

As at 1 January 2020

5,584

1,494

17,187

2

197

150

(59)

(5,792)

26,072

44,835

5,513

313

50,661

Profit for the period

-

-

-

-

-

-

-

-

724

724

-

27

751

Other comprehensive (loss)/income

-

-

-

(54)

332

(2)

7

631

112

925

-

(12)

913

Distributions

-

-

-

-

-

-

-

-

-

-

-

(20)

(20)

Other equity instruments issued, net of expenses

-

-

-

-

-

-

-

-

-

-

992

-

992

Redemption of other equity instruments

-

-

-

-

-

-

-

-

(13)

(13)

(1,987)

-

(2,000)

Treasury shares purchased

-

-

-

-

-

-

-

-

(98)

(98)

-

-

(98)

Treasury shares issued

-

-

-

-

-

-

-

-

8

8

-

-

8

Share option expense, net of taxation

-

-

-

-

-

-

-

-

133

133

-

-

133

Dividends on preference shares and AT1 securities

-

-

-

-

-

-

-

-

(395)

(395)

-

-

(395)

Share buy-back3

(20)

-

20

-

-

-

-

-

(242)

(242)

-

-

(242)

Other movements

-

-

-

-

-

-

-

69

(60)4

9

-

175

26

As at 31 December 2020

5,564

1,494

17,207

(52)

529

148

(52)

(5,092)

26,140

45,886

4,518

325

50,729

Profit for the period

-

-

-

-

-

-

-

-

1,092

1,092

-

7

1,099

Other comprehensive (loss)/income

-

-

-

(7)

(380)

105

45

(295)

752

(457)

-

2

(455)

Distributions

-

-

-

-

-

-

-

-

-

-

-

(2)

(2)

Other equity instruments issued, net of expenses

-

-

-

-

-

-

-

-

-

-

1,239

-

1,239

Treasury shares purchased

-

-

-

-

-

-

-

-

(85)

(85)

-

-

(85)

Share option expense, net of taxation

-

-

-

-

-

-

-

-

50

50

-

-

50

Dividends on preference shares and AT1 securities

-

-

-

-

-

-

-

-

(65)

(65)

-

-

(65)

Share buy-back6

(19)

-

19

-

-

-

-

-

(255)

(255)

-

-

(255)

Other movements

-

-

-

-

-

-

-

-

-

-

-

207

20

As at 31 March 2021

5,545

1,494

17,226

(59)

149

253

(7)

(5,387)

26,952

46,166

5,757

352

52,275

1   Includes capital reserve of $5 million, capital redemption reserve of $110 million and merger reserve of $17,111 million

2   Comprises actuarial loss, net of taxation, and share from associates and joint ventures $75 million ($11 million for the year ended 31 December 2020)

3   On 28 February 2020, the Group announced the buy-back programme for a share buy-back of its ordinary shares of $0.50 each. Nominal value of share purchases was $20 million, and the total consideration paid was $242 million. The total number of shares purchased was 40,029,585 representing 1.25 per cent of the ordinary shares in issue. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account. On 31 March 2020, the Group announced that, in response to a request from the Prudential Regulation Authority and as a consequence of the unprecedented challenges facing the world due to the COVID-19 pandemic, its board had decided after careful consideration to withdraw the recommendation to pay a final dividend for 2019 of 20 cents per ordinary share, and to suspend the buy-back programme

4   Includes $69 million related to prior period adjustments to reclass FX movements from translation reserve to retained earnings ($45 million related to FX movements of the hedging instruments for net investment hedges and $24 million related to FX movements for monetary items, which were considered structural positions), and $9 million increase related to revenue reserves of PT Bank Permata Tbk

5   Movement related to non-controlling interest from Mox Bank Limited

6   On 25 February 2021, the Group announced the buy-back programme for a share buy-back of its ordinary shares of $0.50 each. Nominal value of share purchases was $19 million, and the total consideration paid was $255 million (including $1 million of fees) . The total number of shares purchased was 37,148,399 representing 1.18 per cent of the ordinary shares in issue. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account.

7   Movement related to non-controlling interest from Mox Bank Limited

 

Basis of preparation

This statement covers the results of Standard Chartered PLC together with its subsidiaries and equity accounted interest in associates and jointly controlled entities (the Group) for the three months ended 31 March 2021. The financial information on which this statement is based, and the data set out in the appendix to this statement, are unaudited and have been prepared in accordance with the Group's accounting policies. The Group's significant accounting policies are described in the Annual Report 2020, which have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union (EU). The Group's Annual Report 2021 will be prepared in accordance with United Kingdom (UK) adopted international accounting standards.

The interim financial information does not constitute a full or condensed set of financial statements under IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards. The interim financial information has been prepared in accordance with the recognition and measurement principles, but not the disclosure requirements under UK-adopted international accounting standards.

The information in this document does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2020, which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

Going concern

The Directors made an assessment of the Group's ability to continue as a going concern, including the impact of COVID-19, and confirm they are satisfied that the Group has adequate resources to continue in business for a period of twelve months from the date of approval of the interim financial information. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the interim financial information.

Other supplementary financial information

 

Average balance sheets and yields

Average assets


3 months ended 31.03.21

Average
non-interest earning balance
$million

Average
interest
earning balance
$million

Interest income
$million

Gross yield
interest
earning balance
%

Gross yield
total balance
%

Cash and balances at central banks

21,459

53,521

19

0.14

0.10

Gross loans and advances to banks

23,919

52,248

148

1.15

0.79

Gross loans and advances to customers

50,958

299,535

1,845

2.50

2.13

Impairment provisions against loans and advances to banks and customers

-

(6,654)

-

-

-

Investment securities

31,704

157,681

520

1.34

1.11

Property, plant and equipment and intangible assets

9,120

-

-

-

-

Prepayments, accrued income and other assets

117,035

-

-

-

-

Investment associates and joint ventures

2,213

-

-

-

-

Total average assets

256,408

556,331

2,532

1.85

1.26

 


3 months ended 31.12.20

Average
non-interest earning balance
$million

Average
interest
earning balance
$million

Interest income
$million

Gross yield
interest
earning balance
%

Gross yield
total balance
%

Cash and balances at central banks

21,562

48,642

20

0.16

0.11

Gross loans and advances to banks

26,085

52,334

155

1.18

0.79

Gross loans and advances to customers

53,758

297,520

1,895

2.53

2.15

Impairment provisions against loans and advances to banks and customers

-

(7,077)

-

-

-

Investment securities

29,915

147,218

618

1.67

1.39

Property, plant and equipment and intangible assets

8,453

-

-

-

-

Prepayments, accrued income and other assets

123,843

-

-

-

-

Investment associates and joint ventures

2,134

-

-

-

-

Total average assets

265,750

538,637

2,688

1.99

1.33

 


3 months ended 31.03.20

Average
non-interest earning balance
$million

Average
interest
earning balance
$million

Interest income
$million

Gross yield
interest
earning balance
%

Gross yield
total balance
%

Cash and balances at central banks

16,576

31,795

53

0.67

0.44

Gross loans and advances to banks

28,389

57,106

321

2.26

1.51

Gross loans and advances to customers

50,852

284,841

2,510

3.54

3.01

Impairment provisions against loans and advances to banks and customers

-

(5,692)

-

-

-

Investment securities

29,007

142,622

862

2.43

2.02

Property, plant and equipment and intangible assets

9,895

-

-

-

-

Prepayments, accrued income and other assets

103,766

-

-

-

-

Investment associates and joint ventures

2,228

-

-

-

-

Total average assets

240,713

510,672

3,746

2.95

2.01

 

 

Average liabilities


3 months ended 31.03.21

Average
non-interest bearing balance
$million

Average
interest
bearing balance
$million

Interest expense
$million

Rate paid
interest
bearing balance
%

Rate paid
total balance
%

Deposits by banks

16,816

31,562

27

0.35

0.23

Customer accounts:

 

 

 

 

 

Current accounts and savings deposits

48,825

252,807

186

0.30

0.25

Time and other deposits

53,391

148,789

375

1.02

0.75

Debt securities in issue

5,967

59,388

151

1.03

0.94

Accruals, deferred income and other liabilities

122,026

1,081

13

4.88

0.04

Subordinated liabilities and other borrowed funds

-

15,998

122

3.09

3.09

Non-controlling interests

338

-

-

-

-

Shareholders' funds

51,163

-

-

-

-

 

298,526

509,625

874

0.70

0.44

 

 

 

 

 

 

Adjustment for Financial Markets funding costs

 

 

(35)

 

 

Financial guarantee fees on interest earning assets

 

 

23

 

 

Total average liabilities and shareholders' funds

298,526

509,625

862

0.69

0.43

 


3 months ended 31.12.20

Average
non-interest bearing balance
$million

Average
interest
bearing balance
$million

Interest expense
$million

Rate paid
interest
bearing balance
%

Rate paid
total balance
%

Deposits by banks

16,303

30,073

(34)

(0.45)

(0.29)

Customer accounts:

 

 

 

 

 

Current accounts and savings deposits

48,512

247,796

145

0.23

0.19

Time and other deposits

58,905

143,801

503

1.39

0.99

Debt securities in issue

6,287

52,087

166

1.27

1.13

Accruals, deferred income and other liabilities

131,307

1,065

14

5.23

0.04

Subordinated liabilities and other borrowed funds

-

15,956

139

3.47

3.47

Non-controlling interests

349

-

-

-

-

Shareholders' funds

50,244

-

-

-

-

 

311,908

490,777

933

0.76

0.46

 

 

 

 

 

 

Adjustment for Financial Markets funding costs

 

 

(25)

 

 

Financial guarantee fees on interest earning assets

 

 

104

 

 

Total average liabilities and shareholders' funds

311,908

490,777

1,012

0.82

0.50

 

 


3 months ended 31.03.20

Average
non-interest bearing balance
$million

Average
interest
bearing balance
$million

Interest expense
$million

Rate paid
interest
bearing balance
%

Rate paid
total balance
%

Deposits by banks

18,354

27,517

149

2.18

1.31

Customer accounts:

 

 

 

 

 

Current accounts and savings deposits

40,220

204,412

479

0.94

0.79

Time and other deposits

58,635

161,324

854

2.13

1.56

Debt securities in issue

8,275

54,010

245

1.82

1.58

Accruals, deferred income and other liabilities

108,023

1,246

-

0.00

0.00

Subordinated liabilities and other borrowed funds

-

16,040

180

4.51

4.51

Non-controlling interests

310

-

-

-

-

Shareholders' funds

50,023

-

-

-

-

 

283,840

464,549

1,907

1.65

1.02

 

 

 

 

 

 

Adjustment for Financial Markets funding costs

 

 

(92)

 

 

Financial guarantee fees on interest earning assets

 

 

-

 

 

Total average liabilities and shareholders' funds

283,840

464,549

1,815

1.57

0.98

CONTACT INFORMATION

Global headquarters

Standard Chartered Group
1 Basinghall Avenue
London, EC2V 5DD
United Kingdom

telephone: +44 (0)20 7885 8888
facsimile: +44 (0)20 7885 9999

Shareholder enquiries

ShareCare information
website: sc.com/shareholders
helpline: +44 (0)370 702 0138

ShareGift information
website: ShareGift.org
helpline: +44 (0)20 7930 3737

Registrar information

UK

Computershare Investor Services PLC

The Pavilions
Bridgwater Road
Bristol, BS99 6ZZ
helpline: +44 (0)370 702 0138

Hong Kong

Computershare Hong Kong Investor Services Limited

17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong

website: computershare.com/hk/investors

Chinese translation

Computershare Hong Kong Investor Services Limited

17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong

Register for electronic communications

website: investorcentre.co.uk

For further information, please contact:
Gregg Powell, Head of Investor Relations
+852 2820 3050

LSE Stock code: STAN.LN
HKSE Stock code: 02888

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