REG - Standard Chrtrd PLC - 1st Quarter Results
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RNS Number : 1602H Standard Chartered PLC 02 May 2025
Standard Chartered PLC
Q1'25 Results
2 May 2025
Registered in England under company No. 966425
Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK
Page 01
Table of contents
Performance highlights 3
Statement of results 5
Group Chief Financial Officer's review 6
Financial review 8
Supplementary financial information 14
Underlying versus reported results reconciliations 23
Risk review 26
Capital review 29
Financial statements 33
Other supplementary financial information 38
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.
Unless the context requires, within the 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,
India, Indonesia, Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri
Lanka, Thailand, Vietnam, China, Hong Kong, Japan, Korea, Macau and Taiwan;
Africa includes Botswana, Côte d'Ivoire, Egypt, Ghana, Kenya, Mauritius,
Nigeria, South Africa, Tanzania, Uganda and Zambia. The Middle East includes
Bahrain, Iraq, Oman, Pakistan, Qatar and Saudi Arabia and the UAE. Europe
includes Belgium, Falkland Islands, France, Germany, Jersey, Luxembourg,
Poland, Sweden, Türkiye and the UK. The Americas includes Argentina, Brazil,
Colombia 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, and 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.
Page 02
Standard Chartered PLC -first quarter results
All figures are presented on an underlying basis and comparisons are made to
2024 on a reported currency basis, unless otherwise stated. A reconciliation
of restructuring and other items excluded from underlying results is set out
on pages 23-25.
Bill Winters, Group Chief Executive, said:
"We delivered a strong performance in the first quarter of 2025, with earnings
per share up 19%, driven by double-digit income growth in Wealth Solutions,
Global Markets and Global Banking. The subsequent imposition of trade tariffs
has increased global economic and geopolitical complexity, and we remain
watchful of the external environment. But our ability to help clients manage
their business and wealth across borders in times of volatility reinforces our
confidence that we can continue to improve returns. Our presence in
structurally high-growth markets across Asia, Africa and the Middle East is
key to driving long-term sustainable value for our shareholders, and we remain
focused on reinforcing these competitive advantages to drive future growth."
Selected information on Q1'25 financial performance with comparisons to Q1'24 unless otherwise stated
• Operating income up 7% at constant currency (ccy) to $5.4bn, up 12% at
ccy excluding notable items
- Net interest income (NII) up 7% at ccy to $2.8bn
- Non NII up 7% at ccy to $2.6bn, up 18% at ccy excluding notable items
- Wealth Solutions up 28% at ccy, with double-digit growth in both
Investment Products and Bancassurance
- Global Banking up 17% at ccy, driven by higher origination volumes and
increased capital markets activity
- Global Markets up 14% at ccy, with strong performance in both flow and
episodic income
• Operating expenses up 5% at ccy to $2.9bn, driven by business growth,
targeted investments and inflation, partly offset by efficiency saves
• Credit impairment charge of $219m up 24%, includes $179m from Wealth
& Retail Banking (WRB), with charges mainly from higher interest rates
impacting repayments in some unsecured portfolios. There was a $30m charge in
Corporate & Investment Banking (CIB) in contrast to net releases in recent
quarters
- Loan-loss rate of 25bps up 2bps
• Underlying profit before tax of $2.3bn, up 12% at ccy; reported profit
before tax of $2.1bn, up 15% at ccy
• Restructuring and other charges of $174m include $73m related to the Fit
for Growth programme
• Balance sheet remains strong, liquid and well diversified
- Loans and advances to customers of $282bn broadly flat since 31.12.24; up
3% on an underlying basis, after adjusting for FX, and Treasury and Global
Markets securities backed lending activities
- Customer deposits of $491bn up $26bn or 6% since 31.12.24; up 5% at ccy;
growth in WRB Term Deposits and CIB CASA
• Risk-weighted assets (RWA) of $254bn, up $6.5bn since 31.12.24
- Market risk RWA up $8.5bn; deployed to help clients capture opportunities
- Credit risk RWA down $5.0bn; mainly from optimisation activities
- Operational risk RWA up $3.1bn; mechanically calculated annual one-off
increase
• The Group remains strongly capitalised
- Common Equity Tier 1 (CET1) ratio 13.8% (31.12.24: 14.2%) including the
full 61 basis points impact of the $1.5bn buyback announced in February 2025
• Underlying earnings per share (EPS) increased 9.8 cents to 62.7 cents;
reported EPS increased 10.1 cents to 56.6 cents
• Tangible net asset value per share of $15.61 up 20 cents QoQ
• Return on Tangible Equity (RoTE) of 16.4%, up 120bps
Guidance
2025 and 2026 guidance remains unchanged as follows:
• Income:
- Operating income to increase 5-7% CAGR in 2023-2026 at ccy excluding the
deposit insurance reclassification; currently tracking towards the upper end
of the range
- 2025 growth expected to be below the 5-7% range at ccy excluding notable
items
Page 03
Standard Chartered PLC -first quarter results continued
• Expenses:
- Operating expenses to be below $12.3bn in 2026 at ccy, including the UK
bank levy and the ongoing impact of the deposit insurance reclassification
- Expense saves of around $1.5bn and cost to achieve of no more than $1.5bn
from the Fit for Growth programme
- Positive income-to-cost jaws in each year at ccy, excluding notable items
• Assets and RWA:
- Low single-digit percentage growth in underlying loans and advances to
customers and RWA
- Basel 3.1 day-1 RWA impact expected to be close to neutral
- Continue to expect the loan-loss rate to normalise towards the historical
through-the-cycle 30 to 35bps range
• Capital:
- Continue to operate dynamically within the full 13-14% CET1 ratio target
range
- Plan to return at least $8bn to shareholders cumulative 2024 to 2026
- Continue to increase full-year dividend per share over time
• RoTE approaching 13% in 2026 and to progress thereafter
Page 04
Statement of results
Q1'25 Q1'24 Change(1)
$million
$million
%
Underlying performance
Operating income 5,390 5,152 5
Operating expenses (2,915) (2,786) (5)
Credit impairment (219) (176) (24)
Other impairment (6) (60) 90
Profit from associates and joint ventures 27 (1) nm
Profit before taxation 2,277 2,129 7
Profit attributable to ordinary shareholders² 1,502 1,393 8
Return on ordinary shareholders' tangible equity (%) 16.4 15.2 120bps
Cost to income ratio (%) 54.1 54.1 -
Reported performance(7)
Operating income 5,379 5,130 5
Operating expenses (3,046) (2,997) (2)
Credit impairment (217) (165) (32)
Other impairment (15) (60) 75
Profit from associates and joint ventures 2 6 (67)
Profit before taxation 2,103 1,914 10
Taxation (511) (519) 2
Profit for the period 1,592 1,395 14
Profit attributable to parent company shareholders 1,590 1,403 13
Profit attributable to ordinary shareholders(2) 1,357 1,223 11
Return on ordinary shareholders' tangible equity (%) 14.8 13.5 130bps
Cost to income ratio (%) 56.6 58.4 180bps
Net interest margin (%) (adjusted)(6,9) 2.12 1.94 18bps
Balance sheet and capital
Total assets 874,446 812,525 8
Total equity 52,468 50,839 3
Average tangible equity attributable to ordinary shareholders² 37,165 36,510 2
Loans and advances to customers 281,788 283,403 (1)
Customer accounts 490,921 459,386 7
Risk weighted assets 253,596 252,116 1
Total capital 53,111 52,538 1
Total capital (%) 20.9 20.8 10bps
Common Equity Tier 1 35,122 34,279 2
Common Equity Tier 1 ratio (%) 13.8 13.6 25bps
Advances-to-deposits ratio (%)(3) 51.8 54.3 (4.5)
Liquidity coverage ratio (%) 147 146 0.7
Leverage ratio (%) 4.7 4.8 (8)bps
Information per ordinary share(8)
Earnings per share(4) - underlying (cents) 62.7 52.9 9.8
- reported 56.6 46.5 10.1
(cents)
Net asset value per share(5) (cents) 1,806 1,626 180
Tangible net asset value per share(5) (cents) 1,561 1,390 171
Number of ordinary shares at period end (millions) 2,384 2,610 (9)
1 Variance is better/(worse) other than assets, liabilities and
risk-weighted assets. Change is percentage points difference between two
points rather than percentage change for total capital ratio (%), common
equity tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio
(%), liquidity coverage ratio (%), leverage ratio (%), cost-to-income ratio
(%) and return on ordinary shareholders' tangible equity (%)
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 include customer
accounts held at fair value through profit or loss
4 Represents the underlying or reported earnings divided by the basic
weighted average number of shares. Results represent three months ended the
reporting period
5 Calculated on period end net asset value, tangible net asset value and
number of shares
6 Net interest margin is calculated as adjusted net interest income
divided by average interest-earning assets, annualised
7 Reported performance/results within this interim financial report means
amounts reported under UK-adopted international accounting standards and
International Financial Reporting Standard (IFRS) (Accounting Standards) as
adopted by the European Union (EU IFRS)
8 Change is cents difference between the two periods for earnings per
share, net asset value per share and tangible net asset value per share.
Number of ordinary shares at period end is percentage difference between the
two periods
9 Net interest income has been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025 to reflect the
reclassification of funding cost mismatches to Non NII
Page 05
Group Chief Financial Officer's review
"The Group delivered a strong performance in the first quarter of 2025"
Summary of financial performance
All commentary that follows is on an underlying basis and comparisons are made
to the equivalent period in 2024 on a constant currency basis, unless
otherwise stated. Q1 2024 included items totalling $234 million relating to
gains on revaluation of FX positions in Egypt and a hyperinflationary
accounting adjustment in Ghana (the notable items).
The Group delivered a strong performance in the first quarter of 2025 amid an
evolving economic environment. Operating income grew by 7 per cent to $5.4
billion. Excluding the impact of the notable items, operating income was up 12
per cent. Underlying expenses increased 5 per cent, resulting in positive
income-to-cost jaws of 7 per cent excluding the notable items. Credit
impairment charges of $219 million in the quarter were equivalent to an
annualised loan-loss rate of 25 basis points. This resulted in an underlying
profit before tax of $2.3 billion, up 12 per cent, and a 19 per cent increase
in underlying earnings per share.
The Group remains well capitalised and highly liquid with a diverse and stable
deposit base. The liquidity coverage ratio of 147 per cent reflects
disciplined asset and liability management. The Common Equity Tier 1 (CET1)
ratio of 13.8 per cent remains robust post the impact of the full $1.5 billion
share buyback announced in February 2025, with profit accretion in the first
quarter partly offset by growth in risk-weighted assets (RWA).
Operating income of $5.4 billion increased by 7 per cent or 12 per cent
excluding the two notable items. The growth was driven by record performance
in Wealth Solutions and strong double-digit growth in Global Markets and
Global Banking.
Net interest income (NII) increased 7 per cent, benefitting from improved mix
and roll-off of legacy short-term hedges which was partly offset by impact of
lower interest rates and margin compression.
Non NII increased 7 per cent or 18 per cent excluding the notable items. This
was driven by continued momentum in Wealth Solutions with double-digit growth
in both Investment Products and Bancassurance, and strong performances in both
Global Banking from higher origination volumes and Global Markets driven by
strong growth in both flow and episodic income.
Operating expenses increased 5 per cent. This was largely driven by continued
investments into business growth initiatives and inflation which were partly
offset by efficiency savings. Excluding the notable items the Group generated
7 per cent positive income-to-cost jaws and the cost-to-income ratio remained
unchanged at 54 per cent.
Credit impairment of $219 million increased 24 per cent. Wealth & Retail
Banking charge of $179 million is broadly in line with recent quarters.
Corporate and Investment Banking impairments continued to be well managed with
net charge of $30 million. Ventures impairment was down by 64 per cent as
delinquency rates improved in Mox Bank (Mox). The non-linearity charge
increased by $23 million during the quarter reflecting an increased
probability weighting for the Global Trade and Geopolitical Trade Tensions
scenario given the heightened uncertainty around trade tariffs.
Other impairment charge decreased by $54 million to $6 million due to the
non-repeat of software assets write-off.
Profit from associates and joint ventures increased by $28 million which
mainly reflected higher profits at China Bohai Bank.
Restructuring, FFG, Debit Valuation Adjustment (DVA) and other items totalled
$174 million including $73 million for Fit for Growth (FFG) programme charge
and $97 million restructuring charges primarily relating to the simplification
of technology platforms and loss on portfolio exits.
Taxation was $511 million on a reported basis, with an underlying effective
tax rate of 23.7 per cent down from 26.5 per cent in the prior year due to
lower level of losses in the UK, lower non-tax-deductible central Group costs
and adjustments related to prior periods.
Underlying RoTE of 16.4 per cent increased 120 basis points due to higher
profits and lower taxation partly offset by higher tangible equity. On a
reported basis, RoTE increased 130 basis points to 14.8 per cent with growth
in underlying profits partly offset by Restructuring and FFG CTA.
Underlying basic earnings per share (EPS) increased 9.8 cents or 19 per cent
to 62.7 cents and reported EPS increased 10.1 cents or 22 per cent to 56.6
cents reflecting both the increase in profits and reduction in share count as
a result of successfully executing share buyback programmes.
Diego De Giorgi
Group Chief Financial Officer
2 May 2025
Page 06
Group Chief Financial Officer's review continued
The Group delivered a strong performance in the first quarter of 2025
Summary of financial performance
Q1'25 Q1'24(2,3) Change Constant currency change¹ Q4'24(2,3) Change Constant currency change¹
$million
$million
%
%
$million
%
%
Underlying net interest income(2) 2,796 2,656 5 7 2,977 (6) (5)
Underlying non NII(2) 2,594 2,496 4 7 1,857 40 40
Underlying operating income 5,390 5,152 5 7 4,834 12 12
Other operating expenses (2,915) (2,786) (5) (5) (3,175) 8 8
UK bank levy - - nm nm (102) 100 100
Underlying operating expenses (2,915) (2,786) (5) (5) (3,277) 11 10
Underlying operating profit before impairment and taxation 2,475 2,366 5 9 1,557 59 61
Credit impairment (219) (176) (24) (24) (130) (68) (71)
Other impairment (6) (60) 90 90 (353) 98 98
Profit/(loss) from associates and joint ventures 27 (1) nm nm (27) 200 nm
Underlying profit before taxation 2,277 2,129 7 12 1,047 117 120
Restructuring (97) (45) (116) (174) (119) 18 19
FFG(5) (73) (10) nm nm (81) 10 10
DVA (4) (48) 92 90 (3) (33) (67)
Other items - (112) 100 100 (44) 100 100
Reported profit before taxation 2,103 1,914 10 15 800 163 167
Taxation (511) (519) 2 (4) (274) (86) (63)
Profit for the period 1,592 1,395 14 19 526 nm nm
Net interest margin (%)(3,4) 2.12 1.94 18 2.21 (9)
Underlying return on tangible equity (%)(4) 16.4 15.2 120 8.1 830
Underlying earnings per share (cents) 62.7 52.9 19 28.9 117
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 Underlying Net Interest Income has been re-presented in line with
the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reclassification of funding cost mismatches to underlying Non NII
3 Net interest margin has been re-presented due to the revision of
underlying net interest income as outlined in footnote 2
4 Change is the basis points (bps) difference between the two periods
rather than the percentage change
5 FFG (Fit For Growth) charge previously reported within
Restructuring has been re-presented as a separate item
Reported financial performance summary
Q1'25 Q1'24 Change Constant currency change¹ Q4'24 Change Constant currency change¹
$million
$million
%
%
$million
%
%
Net interest income 1,581 1,572 1 3 1,709 (7) (6)
Non NII 3,798 3,558 7 9 3,093 23 23
Reported operating income 5,379 5,130 5 7 4,802 12 13
Reported operating expenses (3,046) (2,997) (2) (3) (3,475) 12 12
Reported operating profit before impairment and taxation 2,333 2,133 9 14 1,327 76 78
Credit impairment (217) (165) (32) (31) (129) (68) (69)
Goodwill & other impairment (15) (60) 75 75 (353) 96 96
Profit/(loss) from associates and joint ventures 2 6 (67) (17) (45) 104 111
Reported profit before taxation 2,103 1,914 10 15 800 163 167
Taxation (511) (519) 2 (4) (274) (86) (63)
Profit/(loss) for the period 1,592 1,395 14 19 526 nm nm
Reported return on tangible equity (%)(2) 14.8 13.5 130 5.3 950
Reported earnings per share (cents) 56.6 46.5 22 20.2 180
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
Page 07
Financial review
Operating income by product
Q1'25 Q1'24(1) Change Constant currency change² Q4'24(1) Change Constant currency change²
$million
$million
%
%
$million
%
%
Transaction Services 1,527 1,603 (5) (4) 1,666 (8) (8)
Payments & Liquidity 1,061 1,161 (9) (8) 1,193 (11) (11)
Securities & Prime Services 151 141 7 8 161 (6) (6)
Trade & Working Capital 315 301 5 6 312 1 2
Global Banking 548 472 16 17 500 10 11
Lending & Financial Solutions 452 414 9 10 434 4 5
Capital Markets & Advisory 96 58 66 66 66 45 48
Global Markets 1,183 1,041 14 14 773 53 53
Macro Trading 978 884 11 11 654 50 50
Credit Trading 222 167 33 34 138 61 60
Valuation & Other Adj (17) (10) (70) (70) (19) 11 10
Wealth Solutions 777 616 26 28 562 38 40
Investment Products 559 424 32 33 452 24 24
Bancassurance 218 192 14 15 110 98 103
Deposits & Mortgages 1,006 1,020 (1) - 1,058 (5) (4)
CCPL & Other Unsecured Lending 257 260 (1) - 270 (5) (3)
Ventures 42 32 31 31 60 (30) (29)
Digital Banks 42 29 45 43 41 2 5
SCV - 3 (100) (150) 19 (100) (106)
Treasury & Other 50 108 (54) (19) (55) 191 189
Total underlying operating income 5,390 5,152 5 7 4,834 12 12
1 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025 with no change
in total income
2 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
The operating income by product commentary that follows is on an underlying
basis and comparisons are made to the equivalent period in 2024 on a constant
currency basis, unless otherwise stated. Q1 2024 included items totalling $234
million relating to gains on revaluation of FX positions in Egypt and a
hyperinflationary accounting adjustment in Ghana (the notable items).
Transaction Services income decreased 4 per cent as growth in Securities &
Prime Services and Trade & Working Capital was more than offset by lower
Payments & Liquidity. Securities & Prime Services income grew 8 per
cent from higher custody, funds and prime brokerage fees while Trade &
Working Capital income increased 6 per cent driven by higher volumes and fees.
Payments & Liquidity income decreased 8 per cent as volume growth was more
than offset by the impact of lower interest rates and prior year margin
compression, albeit passthrough rates were actively managed.
Global Banking income increased 17 per cent. Lending & Financial Solutions
income grew 10 per cent as increased deal completion led to higher origination
and distribution volumes. Capital Market & Advisory grew 66 per cent on
the back of higher bond issuances and increased mergers & acquisitions
deal completion.
Global Markets income was up 14 per cent with broad based growth across all
products. Macro Trading increased 11 per cent with double digit growth across
FX, Rates and Commodities while Credit Trading income grew 34 per cent. Flow
income grew strongly by 17 per cent mainly from increased client activity
supported by our strategic initiatives and investments, while episodic income
increased by 7 per cent from strong execution of episodic deals benefitting
from higher market volatility.
Wealth Solutions income was up 28 per cent, driven by double-digit growth in
both Investment Products and Bancassurance, with broad based growth across
markets and products. This was driven by continued momentum in affluent
new-to-bank onboarding with 72,000 clients onboarded during the first quarter
of 2025, and $13 billion of affluent net-new-money, up 22 per cent benefitting
in particular from strong international flows.
Deposits & Mortgages income was flat. The benefit from higher Time
Deposits volumes was fully offset by the impact of lower interest rates, while
Mortgages income was down on the back of lower volumes from an unfavourable
pricing environment.
CCPL & Other Unsecured Lending income was flat as the benefit of higher
margins was partly offset by lower volumes.
Ventures income was up 31 per cent driven by higher Unsecured Lending, Deposit
volumes and fee income in Digital Banks as they continue to grow their
customer base.
Treasury & Other income decreased $58 million as the benefit to operating
income from the repricing of longer dated assets and roll-off of the legacy
loss-making short-term hedges in February 2024 was more than fully offset by
non-repeat of the notable items.
Page 08
Financial review continued
Profit before tax by client segment
Q1'25 Q1'24(1) Change Constant currency change² Q4'24(1) Change Constant currency change²
$million
$million
%
%
$million
%
%
Corporate & Investment Banking(1) 1,741 1,622 7 8 974 79 79
Wealth & Retail Banking(1) 746 682 9 13 464 61 64
Ventures (84) (111) 24 24 (90) 7 8
Central & Other items(1) (126) (64) (97) 5 (301) 58 60
Underlying profit before taxation 2,277 2,129 7 12 1,047 117 120
1 Underlying profit before taxation has been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 to reflect the reallocation of Treasury income and certain costs across
segments
2 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
The client segment commentary that follows is on an underlying basis and
comparisons are made to the equivalent period in 2024 on a constant currency
basis, unless otherwise stated.
Corporate & Investment Banking (CIB) profit before taxation increased 8
per cent. Income grew 4 per cent with strong double-digit growth in Global
Markets and Global Banking partly offset by decrease in Transaction Services.
Expenses were 3 per cent higher and credit impairment was a $30 million net
charge compared to a $9 million charge in the prior year.
Wealth & Retail Banking (WRB) profit before taxation increased 13 per
cent, with income up 12 per cent led by a record performance in Wealth
Solutions. Expenses increased 9 per cent, mainly from increased investment
spend and hiring of affluent relationship managers. Credit impairment charge
of $179 million was up $40 million, mainly from increased delinquencies in
digital partnership and unsecured portfolios.
Ventures losses decreased by $27 million to $84 million. Income was up 31 per
cent to $42 million, driven by a 43 per cent increase in income from the two
Digital Banks. Expenses remained flat as costs were well controlled, while the
$10 million impairment charge was down $18 million as delinquency rates
improved in Mox.
Central & Other items (C&O) recorded a loss before tax of $126 million
which was $62 million higher than the prior year. While Treasury benefitted
from the roll-off of the legacy short-term hedge, repricing of longer dated
assets and higher realisation gains, this was more than fully offset by the
non-repeat of the notable items.
Adjusted net interest income and margin
Q1'25 Q1'24(2) Change¹ Q4'24(2) Change¹
$million
$million
%
$million
%
Adjusted net interest income(2) 2,797 2,666 5 2,981 (6)
Average interest-earning assets 535,999 553,710 (3) 537,410 -
Average interest-bearing liabilities 556,629 537,161 4 543,195 2
Gross yield (%)(3) 4.89 5.36 (47) 5.03 (14)
Rate paid (%)(3) 2.67 3.52 (85) 2.79 (12)
Net yield (%)(3) 2.22 1.84 38 2.24 (2)
Net interest margin (%)(2,3,4) 2.12 1.94 18 2.21 (9)
1 Variance is better/(worse) other than assets and liabilities which is
increase/(decrease)
2 Adjusted net interest income has been re-presented in line with the RNS
on Re-Presentation of Financial Information issued on 2 April 2025 to reflect
the reclassification of funding cost mismatches to Non NII. Adjusted net
interest income is reported net interest income less trading book funding
cost, Treasury currency management activities, cash collateral and prime
services
3 Change is the basis points (bps) difference between the two periods
rather than the percentage change. Net interest margin has been re-presented
due to the revision to Adjusted net interest income as outlined in footnote 2
4 Adjusted net interest income divided by average interest-earning assets,
annualised
Adjusted net interest income increased 5 per cent driven by an 18 per cent
increase in the net interest margin which averaged 212 basis points in the
quarter, increasing 18 basis points year-on-year driven by improved mix and
two-months benefit from roll-off of the legacy loss-making short-term hedges
in February 2024. This was partly offset by lower average interest earnings
assets, lower interest rates, and margin compression. The net interest margin
dropped 9 basis points compared to the prior quarter due to the full 2024
deposit insurance reclassification adjustment booked in the fourth quarter of
the prior year, headwinds from falling interest rates and margin compression
partly offset by favourable mix.
Average interest-earning assets were broadly flat on the prior quarter as
growth in higher yielding Global Banking assets in CIB were offset by lower
Treasury assets. Gross yields decreased 14 basis points compared to the prior
quarter reflecting a declining interest rate environment and margin
compression in Trade partly offset by increased Mortgage margins.
Page 09
Financial review continued
Average interest-bearing liabilities increased 2 per cent compared to the prior quarter reflecting strong growth in customer accounts. The rate paid on liabilities decreased 12 basis points compared with the average in the prior quarter, reflecting the impact of interest rate movements and improved liability mix.
Credit risk summary
Income Statement (Underlying view)
Q1'25 Q1'24 Change(1) Q4'24 Change(1)
$million
$million
%
$million
%
Total credit impairment charge 219 176 24 130 68
Of which stage 1 and 2(2) 112 61 84 172 (35)
Of which stage 3(2) 107 115 (7) (42) nm
1 Variance is increase/(decrease) comparing current reporting period
to prior reporting periods
2 Refer to Credit Impairment charge table in Risk review section for
reconciliation from underlying to reported credit impairment
Balance sheet
31.03.25 31.12.24 Change(1) 31.03.24 Change(1)
$million
$million
%
$million
%
Gross loans and advances to customers(2) 286,812 285,936 - 288,643 (1)
Of which stage 1 269,282 269,102 - 272,133 (1)
Of which stage 2 11,447 10,631 8 9,520 20
Of which stage 3 6,083 6,203 (2) 6,990 (13)
Expected credit loss provisions (5,024) (4,904) 2 (5,240) (4)
Of which stage 1 (537) (483) 11 (478) 12
Of which stage 2 (462) (473) (2) (359) 29
Of which stage 3 (4,025) (3,948) 2 (4,403) (9)
Net loans and advances to customers 281,788 281,032 - 283,403 (1)
Of which stage 1 268,745 268,619 - 271,655 (1)
Of which stage 2 10,985 10,158 8 9,161 20
Of which stage 3 2,058 2,255 (9) 2,587 (20)
Cover ratio of stage 3 before/after collateral (%)(3) 66 / 81 64 / 78 2 / 3 63 / 81 3 / 0
Credit grade 12 accounts ($million) 1,797 969 85 1,009 78
Early alerts ($million) 4,451 5,559 (20) 4,933 (10)
Investment grade corporate exposures (%)(3) 74 74 - 72 2
Aggregate top 20 corporate exposures as a percentage of Tier 1 capital(3,4) 60 61 (1) 61 (1)
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 $6,797 million at 31.03.2025, $9,660 million at
31.12.2024 and $11,290 million at 31.03.2024
3. Change is the percentage points difference between the two points rather
than the percentage change
4. Excludes repurchase and reverse repurchase agreements
Asset quality remained resilient in the first quarter, with an improvement in
a number of underlying credit metrics. The Group continues to actively manage
the credit portfolio whilst remaining alert to a volatile and challenging
external environment including increased geopolitical tensions and evolving
policy changes which may lead to idiosyncratic stress in a select number of
geographies and industry sectors.
Page 10
Financial review continued
Credit impairment was a $219 million charge in the quarter, up $43 million
year-on-year and up $89 million compared to the prior quarter representing an
annualised loan-loss rate of 25 basis points. There was a $179 million charge
in WRB, up $40 million mainly from the elevated interest rate environment
impacting repayments of credit cards and personal loans in a few select
markets, with some elevated flows from digital partnership portfolios. The SME
portfolio, where we have limited exposures which are largely secured, is
closely monitored. There was a $10 million charge in Ventures down $18 million
year-on-year as delinquency rates have improved in Mox. In CIB, there was a
net $30 million charge in the quarter as new impairment was partially offset
by releases in other parts of the portfolio. During the quarter the
non-linearity impact increased by $23 million to $66 million. This reflects an
increased probability weighting from 10 per cent to 15 per cent due to the
Global Trade and Geopolitical Trade Tensions scenario, given the heightened
uncertainty around trade tariffs. The Group retains a China commercial real
estate (CRE) management overlay of $73 million and a $47 million overlay for
clients who have exposure to the Hong Kong CRE sector down $11 million
quarter-on-quarter as it was mostly utilised on client downgrades.
Gross stage 3 loans and advances to customers of $6.1 billion were 13 per cent
lower, as repayments, client upgrades, a reduction in exposures and write-offs
more than offset new inflows. Credit-impaired loans represent 2.1 per cent of
gross loans and advances, down 5 basis points as compared to 31 December 2024.
The stage 3 cover ratio of 66 per cent improved 2 percentage points as
compared to 31 December 2024, while the cover ratio post collateral at 81 per
cent increased by 3 percentage points due to an increase in stage 3 provisions
and a reduction in gross stage 3 balances.
Credit grade 12 balances increased $0.8 billion since 31 December 2024 to $1.8
billion reflecting downgrades from Early alerts accounts which reduced by $1.1
billion. The Group is continuing to carefully monitor its exposures in select
sectors and geographies, given the unusual stresses caused by the currently
volatile macroeconomic environment.
The proportion of investment grade corporate exposures remained flat since 31
December 2024 at 74 per cent.
Restructuring, goodwill impairment and other items
Q1'25 Q1'24 Q4'24
Restruc-turing DVA FFG Other items Restruc-turing(2) DVA FFG(2) Other items(1) Restruc-turing(2) DVA FFG(2) Other items
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income (7) (4) - - 38 (48) - (12) 15 (3) - (44)
Operating expenses (65) - (66) - (101) - (10) (100) (117) - (81) -
Credit impairment 2 - - - 11 - - - 1 - - -
Other impairment (2) - (7) - - - - - - - - -
Profit/(loss) from associates and joint ventures (25) - - - 7 - - - (18) - - -
Loss before taxation (97) (4) (73) - (45) (48) (10) (112) (119) (3) (81) (44)
1 Other items include $100 million charge relating to Korea equity
linked securities (ELS) portfolio
2 FFG (Fit For Growth) charge previously reported within
Restructuring has been re-presented as a separate item
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 of $97 million reflects the impact of actions to simplify
technology platforms, losses on portfolio exits and held for sale businesses
and optimising the Group's office space and property footprint.
Movements in Debit Valuation Adjustment (DVA) were negative $4 million driven
by the tightening of Group's asset swap spreads on derivative liability
exposures.
Charges related to the Fit for Growth (FFG) programme totalled $73 million.
Page 11
Financial review continued
Balance sheet and liquidity
31.03.25 31.12.24 Change¹ 31.03.24 Change¹
$million
$million
%
$million
%
Assets
Loans and advances to banks 45,604 43,593 5 39,698 15
Loans and advances to customers 281,788 281,032 - 283,403 (1)
Other assets 547,054 525,063 4 489,424 12
Total assets 874,446 849,688 3 812,525 8
Liabilities
Deposits by banks 28,569 25,400 12 29,691 (4)
Customer accounts 490,921 464,489 6 459,386 7
Other liabilities 302,488 308,515 (2) 272,609 11
Total liabilities 821,978 798,404 3 761,686 8
Equity 52,468 51,284 2 50,839 3
Total equity and liabilities 874,446 849,688 3 812,525 8
Advances-to-deposits ratio (%)² 51.8% 53.3% 54.3%
Liquidity coverage ratio (%) 147% 138% 146%
1 Variance is increase/(decrease) comparing current reporting period
to prior reporting periods
2 The Group excludes $15,847 million held with central banks
(31.12.24: $19,187 million, 31.03.24: $21,258 million) that has been confirmed
as repayable at the point of stress. Advances exclude reverse repurchase
agreement and other similar secured lending of $6,797 million (31.12.24:
$9,660 million, 31.03.24: $11,290 million) and include loans and advances to
customers held at fair value through profit or loss of $7,692 million
(31.12.24: $7,084 million, 31.03.24: $7,950 million). Deposits include
customer accounts held at fair value through profit or loss of $24,642 million
(31.12.24: $21,772 million, 31.03.24: $17,595 million)
The Group's balance sheet remains strong, liquid and well diversified.
Loans and advances to customers increased by $1 billion from 31 December 2024.
Underlying growth was $7 billion or 2.6 per cent excluding the impact of a $8
billion reduction from Treasury and securities-based loans held to collect and
$1.6 billion increase from currency translation. The underlying growth is
primarily driven by Global Banking in CIB.
Customer accounts of $491 billion increased by $26 billion or 6 per cent from
31 December 2024. Excluding a $2 billion increase from currency translation,
customer accounts increased by $25 billion, or 5 per cent. This was primarily
driven by increase of $10 billion in CIB CASA, $6 billion in Wealth deposits
and $5 billion increase Corporate Term Deposits from treasury management
activities.
Other assets increased 4 per cent, or $22 billion, from 31 December 2024.
Financial assets held at fair value through profit or loss increased by $19
billion, primarily in reverse repurchase agreements, debt securities and other
eligible bills, while other financial assets increased by $15 billion from
higher volumes of unsettled trades in Global Markets. Investment securities
and central bank balances increased by $7 billion each. These increases were
partly offset by a $25 billion decrease in Derivative asset balance.
Other liabilities decreased 2 per cent or $6 billion, from 31 December 2024
with a $22 billion decrease in derivative balances and a $6 billion decrease
in repurchase agreements. This was partly offset by increase of $9 billion in
financial liabilities held at fair value through profit and loss, $8 billion
increase in other financial liabilities held at amortised cost and a $5
billion increase in debt securities in issue.
The advances-to-deposits ratio decreased to 51.8 per cent from 53.3 per cent
as of 31 December 2024. The point-in-time liquidity coverage ratio increased 9
percentage points in the quarter to 147 per cent and remains well above the
minimum regulatory requirement of 100 per cent.
Risk-weighted assets
31.03.25 31.12.24 Change¹ 31.03.24 Change¹
$million
$million
%
$million
%
By risk type
Credit risk 184,274 189,303 (3) 193,009 (5)
Operational risk 32,578 29,479 11 29,805 9
Market risk 36,744 28,283 30 29,302 25
Total RWAs 253,596 247,065 3 252,116 1
1 Variance is increase/(decrease) comparing current reporting period
to prior reporting periods
Page 12
Financial review continued
Total risk-weighted assets of $254 billion increased $6.5 billion or 3 per
cent from 31 December 2024.
• Credit risk RWA at $184 billion decreased by $5.0 billion from 31
December 2024 due to $4.6 billion reduction from optimisation initiatives and
$1.6 billion decrease from model and methodology changes partly offset by a
$0.9 billion increase from currency translation.
• Operational risk RWA is mechanically higher by $3.1 billion due to
an increase in average income as measured over a rolling three-year time
horizon, with higher 2024 income replacing lower 2021 income.
• Market risk RWA increased $8.5 billion to $36.7 billion, deployed
to help clients capture market opportunities.
Capital base and ratios
31.03.25 31.12.24 Change¹ 31.03.24 Change¹
$million
$million
%
$million
%
CET1 capital 35,122 35,190 - 34,279 2
Additional Tier 1 capital (AT1) 7,507 6,482 16 6,486 16
Tier 1 capital 42,629 41,672 2 40,765 5
Tier 2 capital 10,482 11,419 (8) 11,773 (11)
Total capital 53,111 53,091 - 52,538 1
CET1 capital ratio(%)² 13.8 14.2 (39)bps 13.6 25bps
Total capital ratio(%)² 20.9 21.5 (55)bps 20.8 10bps
Leverage ratio (%)² 4.7 4.8 (11)bps 4.8 (8)bps
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's CET1 ratio of 13.8 per cent was down 39 basis points against the
ratio as at 31 December 2024 but was up 21 basis points after accounting for
the $1.5 billion share buyback announced in February 2025, with profit
accretion partly offset by an increase in RWAs. The CET1 ratio remains 3.4
percentage points above the Group's latest regulatory minimum of 10.5 per
cent.
The 65 basis points of CET1 accretion from profits was partly offset by 41
basis points impact from an increase in RWA. A further 5 basis points uplift
was the result of FX, fair value gains in other comprehensive income and
certain regulatory capital adjustments.
The Group is part way through the $1.5 billion share buyback programme which
it announced on 21 February 2025, and by 31 March 2025 had spent $431 million
purchasing 28 million ordinary shares, reducing the share count by
approximately 1 per cent. Even though the share buyback was still ongoing on
31 March 2025, the entire $1.5 billion is deducted from CET1 in the period.
The Group is accruing a provisional interim 2025 ordinary share dividend over
the first half of 2025, which is calculated formulaically at one-third of the
ordinary dividend paid in 2024 or 12.3 cents a share. Half of this amount was
accrued in the first quarter and, combined with payments due to AT1 and
preference shareholders, reduced the CET1 ratio by 11 basis points.
The Group's leverage ratio of 4.7 per cent is 11 basis points lower than as at
31 December 2024. An increase in Tier 1 capital following a $1 billion
issuance of AT1 instruments in the first quarter and profit accretion was more
than fully offset by increased leverage exposures and the impact of the $1.5
billion share buyback programme announced on 21 February 2025. The Group's
leverage ratio remains significantly above its minimum requirement of 3.7 per
cent.
Page 13
Supplementary financial information
Underlying performance by client segment
Q1'25 Q1'24(1)
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other items Total Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other items Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 3,322 2,110 42 (84) 5,390 3,212 1,910 32 (2) 5,152
External 3,174 978 42 1,196 5,390 2,642 881 32 1,597 5,152
Inter-segment 148 1,132 - (1,280) - 570 1,029 - (1,599) -
Operating expenses (1,553) (1,181) (112) (69) (2,915) (1,527) (1,085) (112) (62) (2,786)
Operating profit/(loss) before impairment losses and taxation 1,769 929 (70) (153) 2,475 1,685 825 (80) (64) 2,366
Credit impairment (30) (179) (10) - (219) (9) (139) (28) - (176)
Other impairment 1 (4) - (3) (6) (54) (4) - (2) (60)
Profit/(loss) from associates and joint ventures 1 - (4) 30 27 - - (3) 2 (1)
Underlying profit/(loss) before taxation 1,741 746 (84) (126) 2,277 1,622 682 (111) (64) 2,129
Restructuring & Other items (97) (75) - (2) (174) (80) (133) - (2) (215)
Reported profit/(loss) before taxation 1,644 671 (84) (128) 2,103 1,542 549 (111) (66) 1,914
Total assets 494,395 123,698 6,791 249,562 874,446 415,133 124,401 4,752 268,239 812,525
Of which: loans and advances to customers(2) 203,757 121,031 1,472 18,371 344,631 190,182 122,035 1,024 25,680 338,921
loans and advances to customers 140,920 121,025 1,472 18,371 281,788 134,677 122,024 1,024 25,678 283,403
loans held at fair value through profit or loss 62,837 6 - - 62,843 55,505 11 - 2 55,518
Total liabilities 485,427 227,645 5,740 103,166 821,978 451,516 201,580 3,967 104,623 761,686
Of which: customer accounts(3) 319,507 223,847 5,379 5,385 554,118 311,087 197,071 3,694 9,652 521,504
Risk-weighted assets 175,445 56,704 2,589 18,858 253,596 166,266 59,467 2,084 24,299 252,116
Underlying return on tangible equity (%) 19.8 26.7 nm (21.8) 16.4 19.8 22.7 nm (14.6) 15.2
Cost to income ratio (%) 46.7 56.0 nm nm 54.1 47.5 56.8 nm nm 54.1
1 Underlying profit before taxation has been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 to reflect the reallocation of Treasury income and certain costs across
segments
2 Loans and advances to customers includes FVTPL and reverse
repurchase agreements
3 Customer accounts includes FVTPL and repurchase agreements
Page 14
Supplementary financial information continued
Corporate & Investment Banking
Q1'25 Q1'24(1,8) Change(2) Constant currency change(2,3) Q4'24(1,8) Change(2) Constant currency change(2,3)
$million
$million
%
%
$million
%
%
Operating income(8) 3,322 3,212 3 4 2,831 17 18
Transaction Services 1,527 1,603 (5) (4) 1,666 (8) (8)
Payments & Liquidity 1,061 1,161 (9) (8) 1,193 (11) (11)
Securities & Prime Services 151 141 7 8 161 (6) (6)
Trade & Working Capital 315 301 5 6 312 1 2
Global Banking 548 472 16 17 500 10 11
Lending & Financial Solutions 452 414 9 10 434 4 5
Capital Markets & Advisory 96 58 66 66 66 45 48
Global Markets 1,183 1,041 14 14 773 53 53
Macro Trading 978 884 11 11 654 50 50
Credit Trading 222 167 33 34 138 61 60
Valuation & Other Adj (17) (10) (70) (70) (19) 11 10
Treasury & Other 64 96 (33) (32) (108) 159 159
Operating expenses (1,553) (1,527) (2) (3) (1,777) 13 12
Operating profit before impairment losses and taxation 1,769 1,685 5 5 1,054 68 68
Credit impairment (30) (9) nm nm 56 (154) (155)
Other impairment 1 (54) 102 102 (136) 101 101
Profit from associates and joint ventures 1 - - - - - -
Underlying profit before taxation 1,741 1,622 7 8 974 79 79
Restructuring & Other items (97) (80) (21) (23) (121) 20 20
Reported profit before taxation 1,644 1,542 7 7 853 93 93
Total assets 494,395 415,133 19 18 485,680 2 1
Of which: loans and advances to customers⁴ 203,757 190,182 7 6 197,582 3 2
Total liabilities 485,427 451,516 8 9 477,385 2 2
Of which: customer accounts⁵ 319,507 311,087 3 4 297,690 7 8
Risk-weighted assets 175,445 166,266 6 nm 169,403 4 nm
Underlying return on tangible equity (%)⁶ 19.8 19.8 4bps nm 10.4 944bps nm
Cost to income ratio (%)⁷ 46.7 47.5 0.8 0.6 62.8 16.1 15.2
1 Underlying profit before taxation has been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 to reflect the reallocation of Treasury income and certain costs across
segments
2 Variance is better/(worse), except for risk-weighted assets, assets
and liabilities which is increase/(decrease)
3 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
4 Loans and advances to customers includes FVTPL and reverse
repurchase agreements
5 Customer accounts includes FVTPL and repurchase agreements
6 Change is the basis points (bps) difference between the two periods
rather than the percentage change
7 Change is the percentage points difference between the two periods
rather than the percentage change
8 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
Performance highlights
• Underlying profit before tax of $1,741 million was up 8 per cent
at constant currency (ccy) mainly driven by higher operating income, partially
offset by higher operating expenses
• Operating income of $3,322 million was up 4 per cent at ccy,
primarily driven by double-digit growth in Global Banking and Global Markets;
Global Banking income rose 17 per cent from higher originations and
distributions volume as well as fee income from capital market issuances and
advisory services. Global Markets income increased by 14 per cent, reflecting
growth in both flow and episodic income. Transaction Services income declined
by 4 per cent, with Payments & Liquidity income down 8 per cent reflecting
the impact of lower interest rates. This was partially offset by an 8 per cent
increase in Securities & Prime Services income, driven by higher fund and
brokerage fees. Trade & Working Capital income also rose by 6 per cent
from growth in balances and fee income
• Underlying operating expenses increased 3 per cent at ccy largely
due to higher performance-related pay accruals and investment in strategic
growth initiatives
Page 15
Supplementary financial information continued
• Credit impairment was a $30 million charge in the quarter, with
higher charge relating to portfolio movements in stage 1 & 2, partially
offset by stage 3 releases. Other impairment was a reduction of $55 million
year-on-year due to non-repeat of software assets write-off
• Risk-weighted assets (RWA) of $175 billion, was up $6 billion
since 31 December 2024, mainly from higher market risk & operational risk
RWA
Wealth & Retail Banking
Q1'25 Q1'24(1,8) Change(2) Constant currency change(2,3) Q4'24(1,8) Change(2) Constant currency change(2,3)
$million
$million
%
%
$million
%
%
Operating income(8) 2,110 1,910 10 12 2,041 3 4
Wealth Solutions 777 616 26 28 562 38 40
Investment Products 559 424 32 33 452 24 24
Bancassurance 218 192 14 15 110 98 103
Deposits & Mortgages 1,006 1,020 (1) - 1,058 (5) (4)
CCPL & Other Unsecured Lending 257 260 (1) - 270 (5) (3)
Treasury & Other 70 14 nm nm 151 (54) (54)
Operating expenses (1,181) (1,085) (9) (9) (1,327) 11 11
Operating profit before impairment losses and taxation 929 825 13 16 714 30 32
Credit impairment (179) (139) (29) (30) (176) (2) (3)
Other impairment (4) (4) - - (74) 95 95
Underlying profit before taxation 746 682 9 13 464 61 64
Restructuring & Other items (75) (133) 44 40 (77) 3 5
Reported profit before taxation 671 549 22 25 387 73 78
Total assets 123,698 124,401 (1) 1 122,357 1 1
Of which: loans and advances to customers(4) 121,031 122,035 (1) - 119,263 1 1
Total liabilities 227,645 201,580 13 14 220,416 3 3
Of which: customer accounts(5) 223,847 197,071 14 14 216,662 3 3
Risk-weighted assets 56,704 59,467 (5) nm 57,287 (1) nm
Underlying return on tangible equity (%)(6) 26.7 22.7 400bps nm 14.1 1,260bps nm
Cost to income ratio (%)(7) 56.0 56.8 0.8 1.3 65.0 9.0 10.0
1 Underlying profit before taxation has been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 to reflect the reallocation of Treasury income and certain costs across
segments
2 Variance is better/(worse), except for risk-weighted assets, assets
and liabilities which is increase/(decrease)
3 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
4 Loans and advances to customers includes FVTPL and reverse
repurchase agreements
5 Customer accounts includes FVTPL and repurchase agreements
6 Change is the basis points (bps) difference between the two periods
rather than the percentage change
7 Change is the percentage points difference between the two periods
rather than the percentage change
8 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
Performance highlights
• Underlying profit before tax of $746 million was up 13 per cent at
constant currency (ccy) mainly driven by higher income partly offset by higher
expenses and impairments
• Operating income of $2,110 million was up 12 per cent at ccy,
primarily driven by 28 per cent increase in Wealth Solutions. The growth was
broad based across wealth products, supported by 72,000 affluent new-to-bank
clients onboarded during the first quarter of 2025, and affluent net-new-money
which was up 22 per cent. Deposits & Mortgages and CCPL & Other
Unsecured Lending were flat year-on-year
• Operating expenses increased 9 per cent at ccy, from increased
investment spend and hiring of Affluent relationship managers
• Credit impairment charge of $179 million, an increase of $40
million, mainly from increased delinquencies in digital partnership and
unsecured portfolios
Page 16
Supplementary financial information continued
Ventures
Q1'25 Q1'24(1) Change(2) Constant currency change(2,3) Q4'24(1) Change(2) Constant currency change(2,3)
$million
$million
%
%
$million
%
%
Operating income 42 32 31 31 60 (30) (29)
Of which: SCV - 3 (100) (150) 19 (100) (106)
Of which: Digital Banks 42 29 45 43 41 2 5
Operating expenses (112) (112) - - (113) 1 -
Operating Loss before impairment losses and taxation (70) (80) 13 13 (53) (32) (32)
Credit impairment (10) (28) 64 64 (14) 29 33
Other impairment - - - - (17) 100 100
Profit/(loss) from associates and joint ventures (4) (3) (33) (33) (6) 33 33
Underlying loss before taxation (84) (111) 24 24 (90) 7 8
Restructuring & Other items - - - - (2) 100 100
Reported loss before taxation (84) (111) 24 24 (92) 9 10
Total assets 6,791 4,752 43 38 6,259 8 4
Of which: loans and advances to customers(4) 1,472 1,024 44 43 1,388 6 6
Total liabilities 5,740 3,967 45 44 5,277 9 8
Of which: customer accounts(5) 5,379 3,694 46 45 5,028 7 6
Risk-weighted assets 2,589 2,084 24 nm 2,406 8 nm
Underlying return on tangible equity (%)(6) nm nm nm nm nm nm nm
Cost to income ratio (%)(7) nm nm nm nm nm nm nm
1 Underlying loss before taxation has been re-presented in line with
the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reallocation of Treasury income and certain costs across segments
2 Variance is better/(worse), except for risk-weighted assets, assets
and liabilities which is increase/(decrease)
3 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
4 Loans and advances to customers includes FVTPL and reverse
repurchase agreements
5 Customer accounts includes FVTPL and repurchase agreements
6 Change is the basis points (bps) difference between the two periods
rather than the percentage change
7 Change is the percentage points difference between the two periods
rather than the percentage change
Performance highlights
• Underlying loss before tax reduced by $27 million to $84 million
mainly driven by an increase in Operating income by $10 million to $42 million
and a decrease in impairment by $18 million to $10 million. Operating expenses
were stable
• Increase in income was driven by the Digital Banks reflecting the
Group's continued investment in transformational digital initiatives. There
was an increase in customer numbers and volumes in both Mox and Trust
• The Credit impairment charge decreased by $18 million to $10
million mainly due to lower credit impairment in Mox, as delinquency rates
improved
Page 17
Supplementary financial information continued
Central & Other items
Q1'25 Q1'24(1,8) Change(2) Constant currency change(2,3) Q4'24(1,8) Change(2) Constant currency change(2,3)
$million
$million
%
%
$million
%
%
Operating income (84) (2) nm (31) (98) 14 16
Treasury & Other(8) (84) (2) nm (31) (98) 14 16
Operating expenses (69) (62) (11) (6) (60) (15) (12)
Operating loss before impairment losses and taxation (153) (64) (139) (19) (158) 3 6
Credit impairment - - - - 4 (100) (100)
Other impairment (3) (2) (50) (50) (126) 98 98
Profit/(loss) from associates and joint ventures 30 2 nm nm (21) nm nm
Underlying (loss)/profit before taxation (126) (64) (97) 5 (301) 58 60
Restructuring & Other items (2) (2) - - (47) 96 95
Reported (loss)/profit before taxation (128) (66) (94) 5 (348) 63 64
Total assets 249,562 268,239 (7) (6) 235,392 6 5
Of which: loans and advances to customers(4) 18,371 25,680 (28) (31) 21,324 (14) (18)
Total liabilities 103,166 104,623 (1) (1) 95,326 8 8
Of which: customer accounts(5) 5,385 9,652 nm (44) 3,883 nm 35
Risk-weighted assets 18,858 24,299 (22) nm 17,969 5 nm
Underlying return on tangible equity (%)(6) (21.8) (14.6) (723)bps nm (14.6) (723)bps nm
Cost to income ratio (%)(7) nm nm nm nm nm nm nm
1 Underlying loss before taxation has been re-presented in line with
the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reallocation of Treasury income and certain costs across segments
2 Variance is better/(worse), except for risk-weighted assets, assets
and liabilities which is increase/(decrease)
3 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
4 Loans and advances to customers includes FVTPL and reverse
repurchase agreements
5 Customer accounts includes FVTPL and repurchase agreements
6 Change is the basis points (bps) difference between the two periods
rather than the percentage change
7 Change is the percentage points difference between the two periods
rather than the percentage change
8 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
Performance highlights
• Underlying loss before taxation increased to $126 million compared
to Q1'24 loss of $64 million, primarily on account of lower operating income
partially offset by increased profit from associates and joint ventures
• Income was $82 million lower year-on-year, primarily driven by a
$93 million decline in other income, partially offset by an $11 million
increase in Treasury income. The decrease in other income was mainly due to
non-recurrence of the hyperinflationary accounting adjustments recorded in
Ghana in the prior year. The increase in Treasury income was mainly driven by
maturity of legacy short-term hedges and repricing of historical structural
hedges, offset by the non-recurrence of Egypt FX revaluation gains in the
prior year
• The increase in profit from associates and joint ventures mainly
reflected higher profits at China Bohai Bank
Page 18
Supplementary financial information continued
Underlying performance by key market
Q1'25
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,361 262 346 155 724 413 305 497 310 1,017 5,390
Operating expenses (560) (186) (192) (79) (392) (219) (123) (423) (160) (581) (2,915)
Operating profit before impairment losses and taxation 801 76 154 76 332 194 182 74 150 436 2,475
Credit impairment (89) (18) (35) (11) (24) (8) 3 (7) (2) (28) (219)
Other impairment (1) 1 (3) - (1) - - - - (2) (6)
Profit/(loss) from associates and joint ventures - - 34 - 1 - - (2) - (6) 27
Underlying profit before taxation 711 59 150 65 308 186 185 65 148 400 2,277
Total assets employed 203,565 50,033 43,485 21,235 108,878 36,059 21,987 241,557 63,881 83,766 874,446
Of which: loans and advances to customers(4) 86,200 28,457 15,119 11,483 64,689 14,344 7,787 65,539 21,270 29,743 344,631
Total liabilities employed 201,396 41,501 34,615 17,352 102,866 27,636 18,273 255,104 46,937 76,298 821,978
Of which: customer accounts(5) 175,766 31,353 28,670 16,102 93,047 19,562 15,683 97,107 18,902 57,926 554,118
Q1'24(1)
Hong Kong Korea China Taiwan Singapore India UAE UK US Other(2) Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,104 309 353 158 660 366 358 470 183 1,191 5,152
Operating expenses (489) (172) (211) (82) (397) (230) (129) (370) (133) (573) (2,786)
Operating profit before impairment losses and taxation 615 137 142 76 263 136 229 100 50 618 2,366
Credit impairment (39) (6) (44) (10) 10 (11) - (11) 1 (66) (176)
Other impairment (14) - (5) - (14) (4) (3) (11) (4) (5) (60)
Profit/(loss) from associates and joint ventures - - 2 - 2 - - (2) - (3) (1)
Underlying profit before taxation(1) 562 131 95 66 261 121 226 76 47 544 2,129
Total assets employed(3) 185,075 51,004 43,600 22,251 104,370 33,349 20,044 217,414 59,242 76,176 812,525
Of which: loans and advances to customers(4) 83,101 29,721 17,476 11,177 67,883 13,782 9,027 63,786 14,614 28,354 338,921
Total liabilities employed(3) 176,643 41,985 37,161 20,643 93,866 26,406 18,104 230,993 44,631 71,254 761,686
Of which: customer accounts(5) 151,257 32,814 27,249 18,077 84,318 20,231 15,084 95,449 21,034 55,991 521,504
1 Underlying profit before taxation has been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 to reflect the reallocation of Treasury income and certain costs across
segments
2 Other includes notable items of Egypt revaluation and Ghana
hyperinflation
3 Balance sheet numbers have been re-presented in line with the RNS
on Re-Presentation of Financial Information issued on 2 April 2025 reflecting
change from management basis to financial basis
4 Loans and advances to customers includes FVTPL and reverse
repurchase agreements
5 Customer deposits includes FVTPL and repurchase agreements
Page 19
Supplementary financial information continued
Q4'24(1)
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,137 293 272 132 618 362 249 440 253 1,078 4,834
Operating expenses (686) (273) (144) (91) (441) (266) (157) (461) (124) (634) (3,277)
Operating profit/(loss) before impairment losses and taxation 451 20 128 41 177 96 92 (21) 129 444 1,557
Credit impairment (92) (7) (29) (11) (33) (12) 112 (6) (2) (50) (130)
Other impairment (58) - (12) - (98) (43) (9) (93) (12) (28) (353)
Profit/(loss) from associates and joint ventures - - (20) - 1 - - (1) - (7) (27)
Underlying profit/(loss) before taxation(1) 301 13 67 30 47 41 195 (121) 115 359 1,047
Total assets employed(2) 193,212 47,578 42,064 22,042 104,850 32,407 23,194 249,988 54,263 80,090 849,688
Of which: loans and advances to customers(3) 86,034 26,745 15,763 11,860 65,166 12,981 8,699 64,714 18,551 29,044 339,557
Total liabilities employed(2) 193,498 39,237 32,768 18,628 96,925 24,856 17,782 260,633 40,922 73,155 798,404
Of which: customer accounts(4) 166,420 28,703 27,853 17,252 86,250 18,601 14,872 90,473 16,066 56,773 523,263
1 Underlying profit before taxation has been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 to reflect the reallocation of Treasury income and certain costs across
segments
2 Balance sheet numbers have been re-presented in line with the RNS
on Re-Presentation of Financial Information issued on 2 April 2025 reflecting
change from management basis to financial basis
3 Loans and advances to customers includes FVTPL and reverse
repurchase agreements
4 Customer deposits includes FVTPL and repurchase agreements
Quarterly underlying operating income by product
Q1'25 Q4'24(1) Q3'24(1) Q2'24(1) Q1'24(1) Q4'23(1) Q3'23(1) Q2'23(1)
$million
$million
$million
$million
$million
$million
$million
$million
Transaction Services 1,527 1,666 1,572 1,593 1,603 1,647 1,654 1,608
Payments & Liquidity 1,061 1,193 1,112 1,139 1,161 1,207 1,196 1,148
Securities & Prime Services 151 161 156 153 141 140 138 131
Trade & Working Capital 315 312 304 301 301 300 320 329
Global Banking 548 500 475 488 472 400 447 447
Lending & Financial Solutions 452 434 407 422 414 358 393 396
Capital Markets & Advisory 96 66 68 66 58 42 54 51
Global Markets 1,183 773 840 796 1,041 534 716 877
Macro Trading 978 654 683 631 884 463 595 776
Credit Trading 222 138 174 165 167 92 122 116
Valuation & Other Adj (17) (19) (17) - (10) (21) (1) (15)
Wealth Solutions 777 562 694 618 616 412 526 495
Investment Products 559 452 507 444 424 298 364 343
Bancassurance 218 110 187 174 192 114 162 152
Deposits & Mortgages 1,006 1,058 1,051 1,041 1,020 1,008 1,036 1,004
CCPL & Other Unsecured Lending 257 270 281 270 260 259 270 264
Ventures 42 60 43 48 32 32 35 72
Digital Banks 42 41 39 33 29 26 27 21
SCV - 19 4 15 3 6 8 51
Treasury & Other 50 (55) (52) (48) 108 (268) (281) (212)
Total underlying operating income 5,390 4,834 4,904 4,806 5,152 4,024 4,403 4,555
1 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025 with no change
in total income
Page 20
Supplementary financial information continued
Earnings per ordinary share
Q1'25 Q1'24 Change Q4'24 Change
$million
$million
%
$million
%
Profit for the period attributable to equity holders 1,592 1,395 14 526 nm
Non-controlling interest (2) 8 nm (4) 50
Dividend payable on preference shares and AT1 classified as equity (233) (180) (29) (29) nm
Profit for the period attributable to ordinary shareholders 1,357 1,223 11 493 175
Items normalised(1):
Restructuring 97 45 116 119 (18)
FFG 73 10 nm 81 (10)
DVA 4 48 (92) 3 33
Net losses on sale of Businesses - 12 nm 44 nm
Other items - 100 nm - nm
Tax on normalised items (29) (45) 36 (36) 19
Underlying profit attributable to ordinary shareholders 1,502 1,393 8 704 113
Basic - Weighted average number of shares (millions) 2,396 2,632 (9) 2,436 (2)
Diluted - Weighted average number of shares (millions) 2,464 2,692 (8) 2,509 (2)
Basic earnings per ordinary share (cents)(2) 56.6 46.5 10.1 20.2 36.4
Diluted earnings per ordinary share (cents)(2) 55.1 45.4 9.7 19.6 35.5
Underlying basic earnings per ordinary share (cents)(2) 62.7 52.9 9.8 28.9 33.8
Underlying diluted earnings per ordinary share (cents)(2) 61.0 51.7 9.3 28.1 32.9
1. Refer Profit before taxation (PBT) table in underlying versus reported
reconciliation
2. Change is the percentage points difference between the two periods rather
than the percentage change
Return on Tangible Equity
Q1'25 Q1'24 Change Q4'24 Change
$million
$million
%
$million
%
Average parent company Shareholders' Equity 44,474 44,188 1 44,824 (1)
Less Average preference share capital and share premium (1,494) (1,494) - (1,494) -
Less Average intangible assets (5,815) (6,184) 6 (6,035) 4
Average Ordinary Shareholders' Tangible Equity 37,165 36,510 2 37,295 -
Profit for the period attributable to equity holders 1,592 1,395 14 526 nm
Non-controlling interests (2) 8 nm (4) 50
Dividend payable on preference shares and AT1 classified as equity (233) (180) (29) (29) nm
Profit for the period attributable to ordinary shareholders 1,357 1,223 11 493 175
Items normalised(1):
Restructuring 97 45 116 119 (18)
FFG 73 10 nm 81 (10)
Net losses on sale of Businesses - 12 nm 44 nm
Ventures FVOCI unrealised (gains) / losses net of tax - (13) nm 51 nm
DVA 4 48 (92) 3 33
Other items - 100 nm - nm
Tax on normalised items (29) (45) 36 (36) 19
Underlying profit for the period attributable to ordinary shareholders 1,502 1,380 9 755 99
Underlying Return on Tangible Equity 16.4% 15.2% 120bps 8.1% 830bps
Reported Return on Tangible Equity 14.8% 13.5% 130bps 5.3% 950bps
1. Refer Profit before taxation (PBT) table in underlying versus reported
reconciliation
Page 21
Supplementary financial information continued
Net Tangible Asset Value per Share
31.03.25 31.03.24 Change 31.12.24 Change
$million
$million
%
$million
%
Parent company shareholders' equity 44,559 43,929 1 44,388 -
Less Preference share capital and share premium (1,494) (1,494) - (1,494) -
Less Intangible assets (5,838) (6,153) 5 (5,791) (1)
Net shareholders tangible equity 37,227 36,282 3 37,103 -
Ordinary shares in issue, excluding own shares (millions) 2,384 2,610 (9) 2,408 (1)
Net Tangible Asset Value per share (cents)(1) 1,561 1,390 171 1,541 20
1 Change is cents difference between the two periods rather than the
percentage change
Page 22
Underlying versus reported results reconciliations
Reconciliations between underlying and reported results are set out in the tables below:
Operating income by client segment
Q1'25 Q1'24
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other items Total Corporate & Investment Banking(1) Wealth & Retail Banking(1) Ventures Central & Other items(1) Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Underlying operating income 3,322 2,110 42 (84) 5,390 3,212 1,910 32 (2) 5,152
Restructuring 3 (12) - 2 (7) 22 10 - 6 38
DVA (4) - - - (4) (48) - - - (48)
Other items - - - - - - - - (12) (12)
Reported operating income 3,321 2,098 42 (82) 5,379 3,186 1,920 32 (8) 5,130
1 Underlying operating income has been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reallocation of Treasury income and certain costs across segments
Net interest income and Non NII
Q1'25 Q1'24
Underlying Restructuring Adjustment for Trading book funding cost and Others Reported Underlying(1) Restructuring Adjustment for Trading book funding cost and Others(1) Reported
$million
$million
$million
$million
$million
$million
$million
$million
Net interest income 2,796 1 (1,216) 1,581 2,656 10 (1,094) 1,572
Non NII 2,594 (12) 1,216 3,798 2,496 (32) 1,094 3,558
Total income 5,390 (11) - 5,379 5,152 (22) - 5,130
1 Underlying net interest income has been re-presented in line with
the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reclassification of funding cost mismatches to Underlying Non NII
Profit before taxation (PBT)
Q1'25
Underlying Restructuring Net gain on businesses disposed/ held for sale FFG Other items DVA Reported
$million
$million
$million
$million
$million
$million
$million
Operating income 5,390 (7) - - - (4) 5,379
Operating expenses (2,915) (65) - (66) - - (3,046)
Operating profit/(loss) before impairment losses and taxation 2,475 (72) - (66) - (4) 2,333
Credit impairment (219) 2 - - - - (217)
Other impairment (6) (2) - (7) - - (15)
Profit/(loss) from associates and joint ventures 27 (25) - - - - 2
Profit/(loss) before taxation 2,277 (97) - (73) - (4) 2,103
Page 23
Underlying versus reported results reconciliations continued
Q1'24
Underlying Restructuring(2) Net loss on businesses disposed/ held for sale FFG(2) Other items(1) DVA Reported
$million
$million
$million
$million
$million
$million
$million
Operating income 5,152 38 (12) - - (48) 5,130
Operating expenses (2,786) (101) - (10) (100) - (2,997)
Operating profit/(loss) before impairment losses and taxation 2,366 (63) (12) (10) (100) (48) 2,133
Credit impairment (176) 11 - - - - (165)
Other impairment (60) - - - - - (60)
Profit/(loss) from associates and joint ventures (1) 7 - - - - 6
Profit/(loss) before taxation 2,129 (45) (12) (10) (100) (48) 1,914
1 Other items include $100 million charge relating to Korea equity
linked securities (ELS) portfolio
2 FFG (Fit For Growth) charge previously reported within
Restructuring has been re-presented as a separate item
Profit before taxation (PBT) by client segment
Q1'25 Q1'24
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other items Total Corporate & Investment Banking(1) Wealth & Retail Banking(1) Ventures Central & Other items(1) Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 3,322 2,110 42 (84) 5,390 3,212 1,910 32 (2) 5,152
External 3,174 978 42 1,196 5,390 2,642 881 32 1,597 5,152
Inter-segment 148 1,132 - (1,280) - 570 1,029 - (1,599) -
Operating expenses (1,553) (1,181) (112) (69) (2,915) (1,527) (1,085) (112) (62) (2,786)
Operating profit/(loss) before impairment losses and taxation 1,769 929 (70) (153) 2,475 1,685 825 (80) (64) 2,366
Credit impairment (30) (179) (10) - (219) (9) (139) (28) - (176)
Other impairment 1 (4) - (3) (6) (54) (4) - (2) (60)
Profit/(loss) from associates and joint ventures 1 - (4) 30 27 - - (3) 2 (1)
Underlying profit/(loss) before taxation 1,741 746 (84) (126) 2,277 1,622 682 (111) (64) 2,129
Restructuring & Other items (97) (75) - (2) (174) (80) (133) - (2) (215)
Reported profit/(loss) before taxation 1,644 671 (84) (128) 2,103 1,542 549 (111) (66) 1,914
1 Underlying profit before taxation has been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 to reflect the reallocation of Treasury income and certain costs across
segments
Page 24
Underlying versus reported results reconciliations continued
Earnings per ordinary share (EPS)
Q1'25
Underlying Restructuring DVA FFG Net loss on sale of business Other items Tax on normalised items Reported
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
Profit for the period attributable to ordinary shareholders 1,502 (97) (4) (73) - - 29 1,357
Basic - Weighted average number of shares (millions) 2,396 2,396
Basic earnings per ordinary share (cents) 62.7 56.6
Q1'24
Underlying Restructuring DVA FFG Net loss on sale of business Other items(1) Tax on normalised items Reported
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
Profit for the period attributable to ordinary shareholders 1,393 (45) (48) (10) (12) (100) 45 1,223
Basic - Weighted average number of shares (millions) 2,632 2,632
Basic earnings per ordinary share (cents) 52.9 46.5
1 Other items include $100m provision relating to Korea ELS
Page 25
Risk review
Credit quality by client segment
Amortised cost 31.03.25
Banks Customers Undrawn commitments Financial Guarantees
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other items Customer Total
$million
$million
$million
$million
$million
Stage 1 45,021 130,687 118,789 1,466 18,340 269,282 184,301 100,874
- Strong 33,032 92,190 113,577 1,449 17,938 225,154 169,205 65,330
- Satisfactory 11,989 38,497 5,212 17 402 44,128 15,096 35,544
Stage 2 518 9,495 1,907 45 - 11,447 3,984 1,776
- Strong 139 1,568 1,428 30 - 3,026 992 479
- Satisfactory 284 6,225 154 5 - 6,384 2,836 1,011
- Higher risk 95 1,702 325 10 - 2,037 156 286
Of which (stage 2):
- Less than 30 days past due - 31 154 5 - 190 - -
- More than 30 days past due 2 254 325 10 - 589 - -
Stage 3, credit-impaired financial assets 77 4,394 1,644 13 32 6,083 253 568
Gross balance¹ 45,616 144,576 122,340 1,524 18,372 286,812 188,538 103,218
Stage 1 (6) (120) (398) (19) - (537) (57) (20)
- Strong (4) (50) (338) (17) - (405) (35) (12)
- Satisfactory (2) (70) (60) (2) - (132) (22) (8)
Stage 2 (1) (315) (127) (20) - (462) (37) (12)
- Strong (1) (26) (55) (12) - (93) (5) -
- Satisfactory - (212) (29) (2) - (243) (24) (7)
- Higher risk - (77) (43) (6) - (126) (8) (5)
Of which (stage 2):
- Less than 30 days past due - (2) (29) (2) - (33) - -
- More than 30 days past due - (1) (43) (6) - (50) - -
Stage 3, credit-impaired financial assets (5) (3,221) (790) (13) (1) (4,025) (2) (115)
Total credit impairment (12) (3,656) (1,315) (52) (1) (5,024) (96) (147)
Net carrying value 45,604 140,920 121,025 1,472 18,371 281,788
Stage 1 0.0% 0.1% 0.3% 1.3% 0.0% 0.2% 0.0% 0.0%
- Strong 0.0% 0.1% 0.3% 1.2% 0.0% 0.2% 0.0% 0.0%
- Satisfactory 0.0% 0.2% 1.2% 11.8% 0.0% 0.3% 0.1% 0.0%
Stage 2 0.2% 3.3% 6.7% 44.4% 0.0% 4.0% 0.9% 0.7%
- Strong 0.7% 1.7% 3.9% 40.0% 0.0% 3.1% 0.5% 0.0%
- Satisfactory 0.0% 3.4% 18.8% 40.0% 0.0% 3.8% 0.8% 0.7%
- Higher risk 0.0% 4.5% 13.2% 60.0% 0.0% 6.2% 5.1% 1.7%
Of which (stage 2):
- Less than 30 days past due 0.0% 6.5% 18.8% 40.0% 0.0% 17.4% 0.0% 0.0%
- More than 30 days past due 0.0% 0.4% 13.2% 60.0% 0.0% 8.5% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 6.5% 73.3% 48.1% 100.0% 3.1% 66.2% 0.8% 20.2%
- Stage 3 Collateral - 307 609 - - 916 - 45
- Stage 3 Cover ratio (after collateral) 6.5% 80.3% 85.1% 100.0% 3.1% 81.2% 0.8% 28.2%
Cover ratio 0.0% 2.5% 1.1% 3.4% 0.0% 1.8% 0.1% 0.1%
Fair value through profit or loss
Performing 36,250 62,805 6 - - 62,811 - -
- Strong 31,753 44,036 4 - - 44,040 - -
- Satisfactory 4,477 18,679 2 - - 18,681 - -
- Higher risk 20 90 - - - 90 - -
Defaulted (CG13-14) - 32 - - - 32 - -
Gross balance (FVTPL)(2) 36,250 62,837 6 - - 62,843 - -
Net carrying value (incl FVTPL) 81,854 203,757 121,031 1,472 18,371 344,631 - -
1 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $6,797 million under Customers and of $3,517
million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $55,151 million under Customers and of $33,576
million under Banks, held at fair value through profit or loss
Page 26
Risk review continued
Amortised cost 31.12.24
Banks Customers Undrawn commitments Financial Guarantees
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other items Customer Total
$million
$million
$million
$million
$million
Stage 1 43,208 128,746 117,015 1,383 21,958 269,102 178,516 87,991
- Strong 31,239 90,725 111,706 1,367 21,540 225,338 162,574 56,070
- Satisfactory 11,969 38,021 5,309 16 418 43,764 15,942 31,921
Stage 2 318 8,643 1,905 48 35 10,631 4,006 2,038
- Strong 8 1,229 1,413 31 - 2,673 994 471
- Satisfactory 125 6,665 155 6 - 6,826 2,862 1,403
- Higher risk 185 749 337 11 35 1,132 150 164
Of which (stage 2):
- Less than 30 days past due - 55 155 6 - 216 - -
- More than 30 days past due 2 7 337 11 - 355 - -
Stage 3, credit-impaired financial assets 83 4,476 1,617 12 98 6,203 7 603
Gross balance¹ 43,609 141,865 120,537 1,443 22,091 285,936 182,529 90,632
Stage 1 (10) (80) (383) (20) - (483) (50) (16)
- Strong (7) (28) (325) (18) - (371) (33) (7)
- Satisfactory (3) (52) (58) (2) - (112) (17) (9)
Stage 2 (1) (303) (147) (23) - (473) (52) (7)
- Strong - (41) (70) (14) - (125) (10) -
- Satisfactory (1) (218) (32) (3) - (253) (32) (4)
- Higher risk - (44) (45) (6) - (95) (10) (3)
Of which (stage 2):
- Less than 30 days past due - (1) (32) (3) - (36) - -
- More than 30 days past due - - (45) (6) - (51) - -
Stage 3, credit-impaired financial assets (5) (3,178) (759) (11) - (3,948) (1) (129)
Total credit impairment (16) (3,561) (1,289) (54) - (4,904) (103) (152)
Net carrying value 43,593 138,304 119,248 1,389 22,091 281,032
Stage 1 0.0% 0.1% 0.3% 1.4% 0.0% 0.2% 0.0% 0.0%
- Strong 0.0% 0.0% 0.3% 1.3% 0.0% 0.2% 0.0% 0.0%
- Satisfactory 0.0% 0.1% 1.1% 12.5% 0.0% 0.3% 0.1% 0.0%
Stage 2 0.3% 3.6% 7.7% 47.9% 0.0% 4.4% 1.3% 0.3%
- Strong 0.0% 3.3% 5.0% 45.2% 0.0% 4.7% 1.0% 0.0%
- Satisfactory 0.8% 3.3% 20.6% 50.0% 0.0% 3.7% 1.1% 0.3%
- Higher risk 0.0% 5.9% 13.4% 54.5% 0.0% 8.4% 6.7% 1.8%
Of which (stage 2):
- Less than 30 days past due 0.0% 1.8% 20.6% 50.0% 0.0% 16.7% 0.0% 0.0%
- More than 30 days past due 0.0% 0.0% 13.4% 54.5% 0.0% 14.4% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 6.0% 71.0% 46.9% 91.7% 0.0% 63.6% 14.3% 21.4%
- Stage 3 Collateral 1 297 584 - - 881 - 46
- Stage 3 Cover ratio (after collateral) 7.2% 77.6% 83.1% 91.7% 0.0% 77.8% 14.3% 29.0%
Cover ratio 0.0% 2.5% 1.1% 3.7% 0.0% 1.7% 0.1% 0.2%
Fair value through profit or loss
Performing 36,967 58,506 6 - - 58,512 - -
- Strong 30,799 38,084 3 - - 38,087 - -
- Satisfactory 6,158 20,314 3 - - 20,317 - -
- Higher risk 10 108 - - - 108 - -
Defaulted (CG13-14) - 13 - - - 13 - -
Gross balance (FVTPL)(2) 36,967 58,519 6 - - 58,525 - -
Net carrying value (incl FVTPL) 80,560 196,823 119,254 1,389 22,091 339,557 - -
1 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $9,660 million under Customers and of $2,946
million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $51,441 million under Customers and of $34,754
million under Banks, held at fair value through profit or loss
Page 27
Risk review continued
Credit impairment charge
3 months ended 31.03.25 3 months ended 31.03.24(1)
Stage 1 & 2 Stage 3 Total Stage 1 & 2 Stage 3 Total
$million
$million
$million
$million
$million
$million
Ongoing business portfolio
Corporate & Investment Banking(1) 58 (28) 30 (10) 19 9
Wealth & Retail Banking(1) 58 121 179 64 75 139
Ventures (4) 14 10 9 19 28
Central & Other items(1) - - - (2) 2 -
Credit impairment charge 112 107 219 61 115 176
Restructuring business portfolio
Others (1) (1) (2) 1 (12) (11)
Credit impairment charge/(release) (1) (1) (2) 1 (12) (11)
Total credit impairment charge 111 106 217 62 103 165
1 Business segments have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025 with no change
in total credit impairment charge
Page 28
Capital review
Capital ratios
31.03.25 31.12.24 Change(2) 31.03.24 Change(2)
CET1 13.8% 14.2% (39)bps 13.6% 25bps
Tier 1 capital 16.8% 16.9% (6)bps 16.2% 64bps
Total capital 20.9% 21.5% (55)bps 20.8% 10bps
Capital base(1)
31.03.25 31.12.24 Change(3) 31.03.24 Change(3)
$million
$million
%
$million
%
CET1 instruments and reserves
Capital instruments and the related share premium accounts 5,181 5,201 - 5,295 (2)
Of which: share premium accounts 3,989 3,989 - 3,989 -
Retained earnings 27,238 24,950 9 27,502 (1)
Accumulated other comprehensive income (and other reserves) 9,076 8,724 4 8,247 10
Non-controlling interests (amount allowed in consolidated CET1) 233 235 (1) 256 (9)
Independently reviewed interim and year-end profits 1,612 4,072 (60) 1,407 15
Foreseeable dividends (970) (923) 5 (830) 17
CET1 capital before regulatory adjustments 42,370 42,259 - 41,877 1
CET1 regulatory adjustments
Additional value adjustments (prudential valuation adjustments) (670) (624) 7 (726) (8)
Intangible assets (net of related tax liability) (5,744) (5,696) 1 (6,066) (5)
Deferred tax assets that rely on future profitability (excludes those arising (34) (31) 10 (51) (33)
from temporary differences)
Fair value reserves related to net losses on cash flow hedges (221) (4) 5,425 4 (5,625)
Deduction of amounts resulting from the calculation of excess expected loss (590) (702) (16) (784) (25)
Net gains on liabilities at fair value resulting from changes in own credit 293 278 5 231 27
risk
Defined-benefit pension fund assets (152) (149) 2 (103) 48
Fair value gains arising from the institution's own credit risk related to (89) (97) (8) (70) 27
derivative liabilities
Exposure amounts which could qualify for risk weighting of 1,250% (41) (44) (7) (33) 24
Other regulatory adjustments to CET1 capital - - - - -
Total regulatory adjustments to CET1 (7,248) (7,069) 3 (7,598) (5)
CET1 capital 35,122 35,190 - 34,279 2
Additional Tier 1 capital (AT1) instruments 7,527 6,502 16 6,506 16
AT1 regulatory adjustments (20) (20) - (20) -
Tier 1 capital 42,629 41,672 2 40,765 5
Tier 2 capital instruments 10,512 11,449 (8) 11,803 (11)
Tier 2 regulatory adjustments (30) (30) - (30) -
Tier 2 capital 10,482 11,419 (8) 11,773 (11)
Total capital 53,111 53,091 - 52,538 1
Total risk-weighted assets (unaudited) 253,596 247,065 3 252,116 1
1 Capital base is prepared on the regulatory scope of consolidation
2 Change is the percentage point difference between two periods,
rather than percentage change
3 Variance is increase/(decrease) comparing current reporting period
to prior periods
Page 29
Capital review continued
Movement in total capital
3 months ended 31.03.25 12 months ended 31.12.24
$million
$million
CET1 at 1 January 35,190 34,314
Ordinary shares issued in the period and share premium - -
Share buy-back (1,500) (2,500)
Profit for the period 1,612 4,072
Foreseeable dividends deducted from CET1 (970) (923)
Difference between dividends paid and foreseeable dividends 690 (469)
Movement in goodwill and other intangible assets (48) 432
Foreign currency translation differences 42 (525)
Non-controlling interests (1) 18
Movement in eligible other comprehensive income 61 636
Deferred tax assets that rely on future profitability (3) 10
Decrease in excess expected loss 112 52
Additional value adjustments (prudential valuation adjustment) (46) 106
IFRS 9 transitional impact on regulatory reserves including day one - 2
Exposure amounts which could qualify for risk weighting 3 -
Fair value gains arising from the institution's own Credit Risk related to 8 19
derivative liabilities
Others (28) (54)
CET1 at 31 March/31 December 35,122 35,190
AT1 at 1 January 6,482 5,492
Net issuances 994 1,015
Foreign currency translation difference and others 31 (25)
AT1 at 31 March/31 December 7,507 6,482
Tier 2 capital at 1 January 11,419 11,935
Regulatory amortisation (62) 1,189
Net redemptions (1,000) (1,517)
Foreign currency translation difference 120 (191)
Tier 2 ineligible minority interest (3) (3)
Other 8 6
Tier 2 capital at 31 March/31 December 10,482 11,419
Total capital at 31 March/31 December 53,111 53,091
Page 30
Capital review continued
Risk-weighted assets by client segment
31.03.25
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 120,386 22,556 32,503 175,445
Wealth & Retail Banking 46,121 10,583 - 56,704
Ventures 2,315 239 35 2,589
Central & Other items 15,452 (800) 4,206 18,858
Total risk-weighted assets 184,274 32,578 36,744 253,596
31.12.24(1)
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 124,635 19,987 24,781 169,403
Wealth & Retail Banking 47,764 9,523 - 57,287
Ventures 2,243 142 21 2,406
Central & Other items 14,661 (173) 3,481 17,969
Total risk-weighted assets 189,303 29,479 28,283 247,065
31.03.24(1)
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 120,534 20,312 25,420 166,266
Wealth & Retail Banking 49,944 9,523 - 59,467
Ventures 1,939 142 3 2,084
Central & Other items 20,592 (172) 3,879 24,299
Total risk-weighted assets 193,009 29,805 29,302 252,116
1 RWA balances are now presented to reflect the RNS on Presentation of
Financial Information issued on 2 April 2025. Prior periods have been
re-presented and there is no change in total RWA
Movement in risk-weighted assets
Credit risk(1) Operational risk Market risk Total risk
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other items Total
$million
$million
$million
$million
$million
At 1 January 2024(1) 116,621 50,771 1,885 22,146 191,423 27,861 24,867 244,151
Asset growth & mix 11,616 (490) 358 (5,176) 6,308 - - 6,308
Asset quality (2,472) (316) - (383) (3,172) - - (3,172)
Model updates 1,620 (1) - - 1,619 - (400) 1,219
Methodology and policy changes 38 39 - - 77 - (1,300) (1,223)
Foreign currency translation (2,788) (1,398) - (692) (4,877) - - (4,877)
Other, including non-credit risk movements - (841) - (1,234) (2,075) 1,618 5,116 4,659
At 31 December 2024(1) 124,635 47,764 2,243 14,661 189,303 29,479 28,283 247,065
Asset growth & mix (3,848) (2,018) 72 855 (4,939) - - (4,939)
Asset quality 792 (54) - (113) 625 - - 625
Model updates (1,880) 232 - - (1,648) - - (1,648)
Methodology and policy changes - - - - - - - -
Foreign currency translation 687 197 - 49 933 - - 933
Other, including non-credit risk movements - - - - - 3,099 8,461 11,560
At 31 March 2025 120,386 46,121 2,315 15,452 184,274 32,578 36,744 253,596
1 RWA balances are now presented to reflect the RNS on Presentation
of Financial Information issued on 2 April 2025. Prior periods have been
re-presented and there is no change in total RWA
Page 31
Capital review continued
Leverage Ratio
31.03.25 31.12.24 Change(3) 31.03.24 Change(3)
$million
$million
%
$million
%
Tier 1 capital 42,629 41,672 2 40,765 5
Derivative financial instruments 56,139 81,472 (31) 46,794 20
Derivative cash collateral 10,150 11,046 (8) 8,006 27
Securities financing transactions (SFTs) 99,041 98,801 - 94,841 4
Loans and advances and other assets 709,116 658,369 8 662,884 7
Total on-balance sheet assets 874,446 849,688 3 812,525 8
Regulatory consolidation adjustments(1) (88,186) (76,197) 16 (80,878) 9
Derivatives adjustments
Derivatives netting (40,329) (63,934) (37) (34,957) 15
Adjustments to cash collateral (8,862) (10,169) (13) (6,685) 33
Net written credit protection 3,971 2,075 91 1,423 179
Potential future exposure on derivatives 53,084 51,323 3 43,745 21
Total derivatives adjustments 7,864 (20,705) nm 3,526 nm
Counterparty risk leverage exposure measure for SFTs 4,438 4,198 6 5,062 (12)
Off-balance sheet items 118,104 118,607 - 122,233 (3)
Regulatory deductions from Tier 1 capital (7,594) (7,247) 5 (7,757) (2)
Total exposure measure excluding claims on central banks 909,072 868,344 5 854,711 6
Leverage ratio excluding claims on central banks (%)(2) 4.7% 4.8% (11)bps 4.8% (8)bps
Average leverage exposure measure excluding claims on central banks 911,289 894,296 2 868,496 5
Average leverage ratio excluding claims on central banks (%)(2) 4.6% 4.7% (7)bps 4.6% 7bps
Countercyclical leverage ratio buffer(2) 0.1% 0.1% - 0.1% -
G-SII additional leverage ratio buffer(2) 0.4% 0.4% - 0.4% -
1 Includes adjustment for qualifying central bank claims and unsettled
regular way trades
2 Change is the percentage point difference between two periods,
rather than percentage change
3 Variance is increase/(decrease) comparing current reporting period
to prior periods
Page 32
Financial statements
Condensed consolidated interim income statement
For the three months ended 31 March 2025
3 months ended 31.03.25 3 months ended 31.03.24
$million
$million
Interest income 6,327 7,137
Interest expense (4,746) (5,565)
Net interest income 1,581 1,572
Fees and commission income 1,331 1,180
Fees and commission expense (194) (212)
Net fee and commission income 1,137 968
Net trading income 2,645 2,489
Other operating income 16 101
Operating income 5,379 5,130
Staff costs (2,144) (2,110)
Premises costs (87) (82)
General administrative expenses (551) (551)
Depreciation and amortisation (264) (254)
Operating expenses (3,046) (2,997)
Operating profit before impairment losses and taxation 2,333 2,133
Credit impairment (217) (165)
Goodwill, property, plant and equipment and other impairment (15) (60)
Profit from associates and joint ventures 2 6
Profit before taxation 2,103 1,914
Taxation (511) (519)
Profit for the period 1,592 1,395
Profit attributable to:
Non-controlling interests 2 (8)
Parent company shareholders 1,590 1,403
Profit for the period 1,592 1,395
cents cents
Earnings per share:
Basic earnings per ordinary share 56.6 46.5
Diluted earnings per ordinary share 55.1 45.4
Page 33
Financial statements continued
Condensed consolidated interim statement of comprehensive income
For the three months ended 31 March 2025
3 months ended 31.03.25 3 months ended 31.03.24
$million
$million
Profit for the period 1,592 1,395
Other comprehensive income / (loss)
Items that will not be reclassified to income statement: (4) (268)
Own credit losses on financial liabilities designated at fair value through (21) (378)
profit or loss
Equity instruments at fair value through other comprehensive income 2 (20)
Actuarial gains on retirement benefit obligations 13 23
Revaluation deficit (3) -
Taxation relating to components of other comprehensive income 5 107
Items that may be reclassified subsequently to income statement: 355 (504)
Exchange differences on translation of foreign operations:
Net gains / (losses) taken to equity 33 (706)
Net (losses) / gains on net investment hedges (13) 274
Share of other comprehensive income from associates and joint ventures 3 5
Debt instruments at fair value through other comprehensive income:
Net valuation gains/(losses) taken to equity 117 (32)
Reclassified to income statement 1 48
Net impact of expected credit losses 3 1
Cash flow hedges:
Net movements in cash flow hedge reserve 261 (108)
Taxation relating to components of other comprehensive income (50) 14
Other comprehensive income / (loss) for the period, net of taxation 351 (772)
Total comprehensive income for the period 1,943 623
Total comprehensive income attributable to:
Non-controlling interests 3 (14)
Parent company shareholders 1,940 637
Total comprehensive income for the period 1,943 623
Page 34
Financial statements continued
Condensed consolidated interim balance sheet
As at 31 March 2025
31.03.25 31.12.24
$million
$million
Assets
Cash and balances at central banks 70,425 63,447
Financial assets held at fair value through profit or loss 196,292 177,517
Derivative financial instruments 56,139 81,472
Loans and advances to banks 45,604 43,593
Loans and advances to customers 281,788 281,032
Investment securities 151,726 144,556
Other assets 58,311 43,468
Current tax assets 602 663
Prepayments and accrued income 3,022 3,207
Interests in associates and joint ventures 997 1,020
Goodwill and intangible assets 5,838 5,791
Property, plant and equipment 2,396 2,425
Deferred tax assets 422 414
Retirement benefit schemes in surplus 151 151
Assets classified as held for sale 733 932
Total assets 874,446 849,688
Liabilities
Deposits by banks 28,569 25,400
Customer accounts 490,921 464,489
Repurchase agreements and other similar secured borrowing 6,555 12,132
Financial liabilities held at fair value through profit or loss 95,283 85,462
Derivative financial instruments 60,213 82,064
Debt securities in issue 69,874 64,609
Other liabilities 52,616 44,681
Current tax liabilities 925 726
Accruals and deferred income 5,779 6,896
Subordinated liabilities and other borrowed funds 9,629 10,382
Deferred tax liabilities 615 567
Provisions for liabilities and charges 339 349
Retirement benefit schemes in deficit 280 266
Liabilities included in disposal groups held for sale 380 381
Total liabilities 821,978 798,404
Equity
Share capital and share premium account 6,675 6,695
Other reserves 9,076 8,724
Retained earnings 28,808 28,969
Total parent company shareholders' equity 44,559 44,388
Other equity instruments 7,500 6,502
Total equity excluding non-controlling interests 52,059 50,890
Non-controlling interests 409 394
Total equity 52,468 51,284
Total equity and liabilities 874,446 849,688
Page 35
Financial statements continued
Condensed consolidated interim statement of changes in equity
For the three months ended 31 March 2025
Ordinary share capital and share premium account Preference share capital and share premium account Capital and merger reserves(1) Own credit adjust-ment reserve Fair value through other compre-hensive income reserve - debt Fair value through other compre-hensive income reserve - equity Cash flow hedge reserve Trans-lation reserve Retained earning Parent company share-holders' equity Other equity instru-ments Non-controlling interests Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
As at 01 January 2024 5,321 1,494 17,453 100 (690) 330 91 (8,113) 28,459 44,445 5,512 396 50,353
Profit for the period - - - - - - - - 4,050 4,050 - (8) 4,042
Other comprehensive (loss)/income(11) - - - (377) 442 (26)(9) (87) (735) 227(2,10) (556) - (14) (570)
Distributions - - - - - - - - - - - (43) (43)
Other equity instruments issued, net of expenses - - - - - - - - - - 1,568(12) - 1,568
Redemption of other equity instruments - - - - - - - - - - (553)(13) - (553)
Treasury shares net movement - - - - - - - - (168) (168) - - (168)
Share option expense, net of taxation - - - - - - - - 269 269 - - 269
Dividends on ordinary shares - - - - - - - - (780) (780) - - (780)
Dividends on preference shares and AT1 securities - - - - - - - - (457) (457) - - (457)
Share buyback(6, 7) (120) - 120 - - - - - (2,500) (2,500) - - (2,500)
Other movements - - - (1) 7 - - 210(3) (131)(5) 85 (25)(13) 63(4) 123
As at 31 December 2024 5,201 1,494 17,573 (278) (241) 304 4 (8,638) 28,969 44,388 6,502 394 51,284
Profit for the period - - - - - - - - 1,590 1,590 - 2 1,592
Other comprehensive (loss)/income(11) - - - (15) 118 (8) 217 20 18(2) 350 - 1 351
Distributions - - - - - - - - - - - (1) (1)
Other equity instruments issued, net of expenses - - - - - - - - - - 994(14) - 994
Treasury shares net movement - - - - - - - - (104) (104) - - (104)
Share option expense, net of taxation - - - - - - - - 85 85 - - 85
Dividends on preference shares and AT1 securities - - - - - - - - (233) (233) - - (233)
Share buyback (20) (7, 8) - 20(7, 8) - - - - - (1,500)(8) (1,500) - - (1,500)
Other movements - - - - (22) - - 22 (17) (17) 4 13(4) -
As at 31 March 2025 5,181 1,494 17,593 (293) (145) 296 221 (8,596) 28,808 44,559 7,500 409 52,468
1 Includes capital reserve of $5 million, capital redemption reserve of $477
million, merger reserve of $17,111 million.
2 Includes actuarial gain, net of taxation on Group defined benefit
schemes
3 December 2024 movement includes realisation of translation adjustment
loss from sale of SCB Zimbabwe Limited ($190 million), SCB Angola S.A. ($31
million), SCB Sierra Leone Limited ($25 million) transferred to other
operating income
4 Movement in 2025 are primarily from non-controlling interest pertaining
to Trust Bank Singapore Limited ($9 million), Century Leader Limited ($2
million) and Furaha Holding Ltd ($2 million). Movements in 2024 are primarily
from non-controlling interest pertaining to Mox Bank Limited ($14 million) and
Trust Bank Singapore Limited ($55 million) offset by SCB Angola S.A. ($6
million)
5 Movement in 2024 mainly includes movements related to Ghana
hyperinflation
6 On 23 February 2024, the Group announced the buyback programme for a
share buyback of its ordinary shares of $0.50 each. Nominal value of share
purchases was $57 million, the total consideration paid was $1,000 million and
the buyback completed on 25 June 2024. The total number of shares purchased
was 113,266,516, representing 4.25 per cent of the ordinary shares in issue at
the beginning of the programme. The nominal value of the shares was
transferred from the share capital to the capital redemption reserve account
7 On 30 July 2024, the Group announced the buyback programme for a $1,500
million share buyback of its ordinary shares of $0.50 each. As at December
2024, nominal value of share purchases was $63 million with the total number
of shares purchased of 126,262,414 and the total consideration was $1,355
million. The buyback programme was completed on 30 January 2025 with a further
11,300,128 shares purchased in 2025, representing 0.44 per cent of shares in
issue at the beginning of the programme. The nominal value of the shares was
transferred from the share capital to the capital redemption reserve account
8 On 21 February 2025, the Group announced the buyback programme for a
$1,500 million share buyback of its ordinary shares of $0.50 each. As at Q1
2025, the total number of shares purchased of 28,032,424 representing 1.16 per
cent of the ordinary shares in issue at the beginning of the programme, for
total consideration of $431 million, and a further $1,069 million relating to
irrevocable obligation to buy back shares under the buyback programme has been
recognised. The nominal value of the shares was transferred from the share
capital to the capital redemption reserve account
9 Includes $174 million gain on sale of equity investment transferred to
retained earnings partly offset by $76 million reversal of deferred tax
liability and $72 million mark-to-market gain on equity instrument
10 Includes $174 million gain on sale of equity investment in other
comprehensive income reserve transferred to retained earnings partly offset by
$13 million capital gain tax
11 All amounts are net of tax
12 Includes $993 million and $575 million (SGD 750 million) fixed rate
resetting perpetual subordinated contingent convertible AT1 securities issued
by Standard Chartered PLC
13 Relates to redemption of AT1 securities of SGD 750 million ($553
million) and realised translation loss ($25 million) reported in other
movements
14 Relates to $994 million AT1 securities issued by Standard Chartered
PLC during the period net of expenses
Page 36
Financial statements continued
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 2025. 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 material
accounting policies are described in the Annual Report 2024, which have been
prepared in accordance with UK-adopted international accounting standards and
International Financial Reporting Standards (IFRS) (Accounting Standards) as
adopted by the European Union (EU IFRS) as there are no applicable differences
for the periods presented, and in conformity with the requirements of the
Companies Act 2006. There are no significant differences between UK-adopted
IAS and EU IFRS. The Group's Annual Report 2025 will continue to be prepared
in accordance with these frameworks.
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 IAS or EU IFRS. The interim financial information has
been prepared in accordance with the recognition and measurement principles,
but not the disclosure requirements under UK-adopted IAS and EU IFRS.
The information in this interim financial report is unaudited and does not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. All references to reported performance/results within this
interim financial report means amounts reported under UK-adopted IAS and EU
IFRS or in reference to the statutory accounts for the year ended 31 December
2024, unless otherwise stated. This document was approved by the Board on 2
May 2025. The statutory accounts for the year ended 31 December 2024 have been
audited and delivered to the Registrar of Companies in England and Wales. The
report of the auditors was (i) unqualified, (ii) did not include a reference
to any matters to which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement under sections
498(2) and 498(3) of the Companies Act 2006.
Going concern
The directors assessed the Group's ability to continue as a going concern,
including a review of the Group's forecasts, Funding and Liquidity metrics,
Capital and Liquidity plans, Legal and regulatory matters, Credit impairment,
macroeconomic conditions and geopolitical headwinds, and confirm they are
satisfied that the Group has adequate resources to continue in business for a
period of twelve months from 2 May 2025. For this reason, the Group continues
to adopt the going concern basis of accounting for preparing the interim
financial information.
Page 37
Other supplementary financial information
Net Interest Margin
Q1'25 Q4'24(1) Q1'24(1)
$million
$million
$million
Interest income (Reported) 6,327 6,681 7,137
Adjustment for trading book funding cost and others(1) 130 116 237
Interest Income adjusted for trading book funding cost and others 6,457 6,797 7,374
Average interest earning assets 535,999 537,410 553,710
Gross yield (%) 4.89 5.03 5.36
Interest expense (Reported) 4,746 4,972 5,565
Adjustment for trading book funding cost and others (1,086) (1,156) (857)
Interest expense adjusted for trading book funding cost and others 3,660 3,816 4,708
Average interest-bearing liabilities 556,629 543,195 537,161
Rate paid (%) 2.67 2.79 3.52
Net yield (%) 2.22 2.24 1.84
Adjusted net interest income(1) 2,797 2,981 2,666
Net interest margin (%) 2.12 2.21 1.94
1 Adjusted net interest income has been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reclassification of funding cost mismatches to Non NII. Adjusted
net interest income is reported net interest income less trading book funding
cost, Treasury currency management activities, cash collateral and prime
services
Page 38
Other supplementary financial information continued
Important Notice - Forward-looking statements
The information included in this document may contain 'forward-looking
statements' based upon current expectations or beliefs as well as statements
formulated with assumptions about future events. Forward-looking statements
include, without limitation, projections, estimates, commitments, plans,
approaches, ambitions and targets (including, without limitation, ESG
commitments, ambitions and targets). Forward-looking statements often use
words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate',
'anticipate', 'believe', 'plan', 'seek', 'aim', 'continue' or other words of
similar meaning to any of the foregoing. Forward-looking statements may also
(or additionally) be identified by the fact that they do not relate only to
historical or current facts.
By their very nature, forward-looking statements are subject to known and
unknown risks and uncertainties and 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. Readers should not
place reliance on, and are cautioned about relying on, any forward-looking
statements.
There are several factors which could cause the Group's actual results and its
plans and objectives to differ materially from those expressed or implied in
forward-looking statements. The factors include (but are not limited to):
changes in global, political, economic, business, competitive and market
forces or conditions, or in future exchange and interest rates; changes in
environmental, geopolitical, social or physical risks; legal, regulatory and
policy developments, including regulatory measures addressing climate change
and broader sustainability-related issues; the development of standards and
interpretations, including evolving requirements and practices in ESG
reporting; the ability of the Group, together with governments and other
stakeholders to measure, manage, and mitigate the impacts of climate change
and broader sustainability-related issues effectively; risks arising out of
health crises and pandemics; risks of cyber-attacks, data, information or
security breaches or technology failures involving the Group; changes in tax
rates or policy; future business combinations or dispositions; and other
factors specific to the Group, including those identified in Standard
Chartered PLC's Annual Report and the financial statements of the Group. To
the extent that any forward-looking statements contained in this document are
based on past or current trends and/or activities of the Group, they 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, nor should be interpreted as,
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 that it is made. 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 Standard Chartered PLC's Annual Report and the financial
statements of the Group for a discussion of certain of the risks and factors
that could adversely impact the Group's actual results, and cause its plans
and objectives, to differ materially from those expressed or implied in any
forward-looking statements.
Non-IFRS performance measures and alternative performance measures
This document may contain financial measures and ratios not specifically defined under International Financial Reporting Standards (IFRS) or international accounting standards (IAS) and/or alternative performance measures as defined in the European Securities and Market Authority guidelines. Such measures may exclude certain items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. These measures are not a substitute for IAS or IFRS measures and are based on a number of assumptions that are subject to uncertainties and change. Please refer to Standard Chartered PLC's Annual Report and the financial statements of the Group for further information, including reconciliations between the underlying and reported measures.
Financial instruments
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.
Caution regarding climate and environment related information
Some of the climate and environment related information in this document is
subject to certain limitations, and therefore the reader should treat the
information provided, as well as conclusions, projections and assumptions
drawn from such information, with caution. The information may be limited due
to a number of factors, which include (but are not limited to): a lack of
reliable data; a lack of standardisation of data; and future uncertainty. The
information includes externally sourced data that may not have been verified.
Furthermore, some of the data, models and methodologies used to create the
information is subject to adjustment which is beyond our control, and the
information is subject to change without notice.
Page 39
Other supplementary financial information continued
General
You are advised to exercise your own independent judgement (with the advice of
your professional advisers as necessary) with respect to the risks and
consequences of any matter contained in this document. The Group, its
affiliates, directors, officers, employees or agents expressly disclaim any
liability and responsibility for any decisions or actions which you may take
and for any damage or losses you may suffer from your use of or reliance on
the information contained in this document.
Chinese translation
If there is a dispute between any translation and the English version of this
Q1 2025 Results, the English text shall prevail.
Page 40
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:
Manus Costello, Global Head of Investor Relations
+44 (0) 20 7885 0017
LSE Stock code: STAN.LN
HKSE Stock code: 02888
Page 41
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