REG - Standard Chrtrd PLC - Additional Financial Information Part 2
24/02/2026 07:00
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RNS Number : 1099U Standard Chartered PLC 24 February 2026
Standard Chartered PLC - Additional Financial information
Highlights
Standard Chartered PLC (the Group) today releases its results for the year
ended 31 December 2025. The following pages provide additional information
related to the announcement.
Table of contents
Financial statements
Independent Auditor's report 02
Consolidated income statement 13
Consolidated statement of comprehensive income 14
Consolidated balance sheet 15
Consolidated statement of changes in equity 16
Cash flow statement 17
Notes to the financial statements 18
Shareholder information 119
Page 01
Independent Auditor's Report to the members of Standard Chartered PLC
Opinion
In our opinion:
• Standard Chartered PLC's Group financial statements and Parent Company
financial statements (the "financial statements") give a true and fair view of
the state of the Group's and of the Parent Company's affairs as at 31 December
2025 and of the Group's profit for the year then ended;
• the Group financial statements have been properly prepared in
accordance with UK-adopted International Accounting Standards (UK IAS) and
International Financial Reporting Standards (IFRS) as adopted by the European
Union (EU IFRS);
• the Parent Company financial statements have been properly prepared in
accordance with UK IAS as applied in accordance with section 408 of the
Companies Act 2006; and
• the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
We have audited the financial statements of Standard Chartered PLC (the
'Company' or the 'Parent Company') and its subsidiaries, interests in
associates, and jointly controlled entities (together with the Company-the
'Group') for the year ended 31 December 2025 which comprise:
Group Company
Consolidated income statement for the year ended 31 December 2025; Balance sheet as at 31 December 2025;
Consolidated statement of comprehensive income for the year then ended; Cash flow statement for the year then ended;
Consolidated balance sheet as at 31 December 2025; Statement of changes in equity for the year then ended; and
Consolidated statement of changes in equity for the year then ended; Related notes 1 to 41 to the financial statements, including: material
accounting policy information.
Consolidated cash flow statement for the year then ended;
Related notes 1 to 41 to the financial statements, including: material
accounting policy information;
Information marked as 'audited' within the Directors' remuneration report; and
Risk Review and Capital Review disclosures marked as 'audited'.
The financial reporting framework that has been applied in their preparation
is applicable law and UK IAS and EU IFRS; and as regards the Parent Company
financial statements, UK IAS as applied in accordance with section 408 of the
Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the Auditor's responsibilities for the
audit of the financial statements section of our report. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Independence
We are independent of the Group and the Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in
the UK, including the FRC's Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The non-audit services prohibited by the FRC's Ethical Standard were not
provided to the Group or the Company and we remain independent of the Group
and the Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors'
use of the going concern basis of accounting in the preparation of the
financial statements is appropriate. Our evaluation of the directors'
assessment of the Group and the Parent Company's ability to continue to adopt
the going concern basis of accounting included:
• performing a risk assessment to identify factors that could impact the
going concern basis of accounting, including consideration of principal and
emerging risks;
• assessing management's going concern assessment, including the Group's
forecast capital, liquidity and leverage ratios over the period of twelve
months from 24 February 2026, to evaluate the headroom against minimum
regulatory requirements and the risk appetite set by the directors;
• engaging EY economic specialists to assess and challenge the
reasonableness of assumptions used to develop the forecasts in the Corporate
Plan (5-year forward looking plan of the business) and evaluating the accuracy
of historical forecasting;
• assessing the Group's funding plan and repayment plan for funding
instruments maturing over the period of twelve months from 24 February 2026;
Page 02
• understanding and evaluating credit rating agency ratings;
• engaging EY prudential regulatory specialists to evaluate the results
of management's stress testing on funding, liquidity, and regulatory capital;
• reviewing correspondence with prudential regulators and authorities for
matters that may impact the going concern assessment; and
• evaluating the going concern disclosure included in note 1 to the
financial statements to assess that the disclosure was appropriate and in
conformity with the reporting standards.
Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group's and the Parent
Company's ability to continue as a going concern for a period of twelve months
from 24 February 2026.
In relation to the Group's and the Parent Company's reporting on how they have
applied the UK Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the directors' statement in the financial
statements about whether the directors considered it appropriate to adopt the
going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to
going concern are described in the relevant sections of this report. However,
because not all future events or conditions can be predicted, this statement
is not a guarantee as to the Group's and the Parent Company's ability to
continue as a going concern.
Overview of our audit approach
Audit scope · We performed an audit of the complete financial information of 10
components in 8 countries and audit procedures on specific balances for a
further 6 components in 5 countries.
· We performed central procedures for certain audit areas and balances as
outlined in Tailoring the scope section of our report.
Key audit matters · Credit impairment
· Basis of accounting and impairment assessment of China Bohai Bank
(interest in associate)
· Valuation of financial instruments held at fair value with higher risk
characteristics.
Materiality · Overall Group materiality of $390m which represents 5% of adjusted profit
before tax.
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
In the current year, our audit scoping has been updated to reflect the new
requirements of ISA (UK) 600 (Revised). We have followed a risk-based approach
when developing our audit approach to obtain sufficient appropriate audit
evidence on which to base our audit opinion. We performed risk assessment
procedures, with input from our component auditors, to identify and assess
risks of material misstatement of the Group financial statements and
identified significant accounts and disclosures. When identifying components
at which audit work needed to be performed to respond to the identified
risks of material misstatement of the Group financial statements, we
considered our understanding of the Group and its business environment, the
applicable financial framework, the Group's system of internal control at the
entity level, the existence of centralised processes, the IT application
environment, and any relevant internal audit results.
We took a centralised approach to auditing certain processes and controls, as
well as the substantive testing of specific balances. This included audit work
over the Group's Global Business Services shared services centre (SSC),
Corporate and Investment Banking SSC, Credit Impairment SSC and Global
Technology.
We determined that centralised audit procedures can be performed across
certain components for the key audit matters outlined later in this report,
and for other audit areas, including: Revenue recognition; Management override
of controls; Technology costs; Impairment of goodwill; Going concern and
long-term viability; Hedge accounting; Climate risk; Share based payments;
Taxation; Legal and regulatory matters; Centralised reconciliations; Onerous
contracts, including impairment of leased properties; IT matters; and certain
transformation programmes.
In addition to the above areas, for select components in Germany, Japan, Hong
Kong, Côte d'Ivoire and Saudi Arabia, we, the primary audit engagement team
("the Primary Audit Team") performed certain procedures centrally over the
cash balances as at 31 December 2025. These components are separate to those
described below.
We identified 16 components in 13 countries as individually relevant to the
Group due a significant risk or an area of higher assessed risk of material
misstatement of the Group financial statements being associated with the
components, or due to financial size of the component relative to the Group.
For those individually relevant components, we identified the significant
accounts where audit work needed to be performed at these components by
applying professional judgement, having considered the Group's significant
accounts on which centralised procedures are performed, the reasons for
identifying the financial reporting component as an individually relevant
component and the size of the component's account balance relative to the
Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances
that are not subject to audit procedures, in aggregate, could give rise to a
risk of material misstatement of the Group financial statements. We did not
identify additional scope required as we assessed the residual risk to not be
material.
Having identified the components for which work will be performed, we
determined the scope to assign to each component.
Page 03
Of the 16 components selected, we designed and performed audit procedures on
the entire financial information of 10 components ("full scope components").
For 6 components, we designed and performed audit procedures on specific
significant financial statement account balances or disclosures of the
financial information of the component ("specific scope components").
Group`s Absolute PBT Group`s Total assets Group`s Absolute Operating Income
2025 2024 2025 2024 2025 2024
Full Scope 66% 64% 87% 87% 68% 72%
Specific Scope 10% 10% 5% 5% 10% 9%
Specified Procedures 0% 2% 0% 0.30% 0% 2%
Total 76% 76% 92% 92% 78% 83%
Of the remaining components that together represent 24% of the Group's
absolute PBT, none are individually greater than 2.3%. For certain of these
components, we performed other procedures at the Group level which included:
performing analytical reviews at the Group financial statement level,
evaluating entity level controls, performing audit procedures on the
centralised shared service centres, testing of consolidation journals and
intercompany eliminations, inquiring with certain overseas EY teams on the
outcome of prior year local statutory audits (where audited by EY) to identify
any potential risks of material misstatement to the Group financial
statements. We also had regard for the extent of centralised procedures in
respect of key audit matters.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the
type of work that needed to be undertaken at each of the components by us, the
Primary Audit Team, or by component auditors from other firms operating under
our instruction. All of the direct components of the Group (full or specific
scope) were audited by EY global network firms. There was one non-EY component
team auditing a single component in a single location, which was instructed by
a direct component of the Group.
Audit procedures were performed on 3 full scope components (including the
audit of the Company) directly by the Primary Audit Team (EY London) in the
United Kingdom. Where components were audited by the Primary Audit Team, this
was under the direction and supervision of the Senior Statutory Auditor. For
the remaining 13 components, where the work was performed by component
auditors, we determined the appropriate level of involvement to enable us to
determine that sufficient and appropriate audit evidence had been obtained as
a basis for our opinion on the Group as a whole.
In addition to the above, the Primary Audit Team also performed full-scope
audit procedures on components related to the Group consolidation process.
In addition, the Group has centralised processes and controls over key areas
in its shared service centres. Members of the Primary Audit Team undertook
direct oversight, review and coordination of our shared service centre audits.
The Primary Audit Team continued to follow a programme of planned visits to
component teams and shared service centres. During the current year's audit
cycle, visits were undertaken by the Primary Audit Team to the component teams
in the following locations:
• Hong Kong
• India (including the shared services centre)
• Mainland China (including the shared services centre)
• Malaysia (including the shared services centre)
• Republic of Korea
• Singapore (including the shared services centre)
• United Arab Emirates
• United States of America
• Kenya
These visits involved discussing the audit approach with the component team
and any issues arising from their work, meeting with local management,
attending planning and closing meetings, and reviewing relevant audit working
papers on risk areas. In addition to the site visits, the Primary Audit Team
interacted regularly with the component and SSC audit teams, where
appropriate, during various stages of the audit, reviewed relevant working
papers and deliverables to the Primary Audit Team, and was responsible for the
scope and direction of the audit process.
The Primary Audit Team also undertook video conference meetings with component
and SSC audit teams and management. These virtual meetings involved discussing
the audit approach and any issues arising from their work, as well as
performing remote reviews of key audit workpapers.
This, together with the procedures performed at the Group level, gave us
sufficient and appropriate evidence for our opinion on the Group and Company
financial statements.
Page 04
Climate change
Stakeholders are increasingly interested in how climate change will impact the
economy, including the banking sector, and further how this may consequently
impact the valuation of assets and liabilities held on bank balance sheets.
The Group manages climate Risk according to the characteristics of the
impacted principal risk types. The assessment of that risk by the Group is
explained in the 'Risk Review and Capital Review' section, and in the
'Sustainability review' section as well as in the 'Supplementary
sustainability information' section of the Annual Report, where management has
also explained their climate commitments.
All of these disclosures form part of the 'Other information', rather than the
audited financial statements. Our procedures on these unaudited disclosures
therefore consisted solely of considering whether they are materially
inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appear to be materially misstated, in line
with our responsibilities on 'Other information'.
In planning and performing our audit we assessed the potential impacts of
climate change on the Group's business and any consequential material impact
on its financial statements.
The Group has explained in the 'Sustainability review' section of the Annual
Report how they have reflected the impact of climate change in their financial
statements, including how this aligns with their commitment to the aspirations
of the Paris Agreement to achieve net zero emissions by 2050. Significant
judgements and estimates relating to climate change are included in the
section 'Climate change impact on the Group's balance sheet' of note 1 to the
financial statements. As stated in these disclosures, the Group has considered
Climate change to be an area which can impact accounting estimates and
judgements through the uncertainty of future events and the impact of that
uncertainty on the Group's assets and liabilities.
Our audit effort in considering the impact of climate change on the financial
statements was focused on evaluating whether management's assessment of the
impact of climate risk has been appropriately reflected in the valuation of
assets and liabilities, where material and where it can be reliably measured,
following the currently effective requirements of UK IAS and EU IFRS. This was
in the context of the Group's process being limited, given that this is a
highly evolving area, as a result of limitations in the data available and the
nascent modelling capabilities, and as the Group considers how it further
embeds its climate ambitions into the planning process.
As part of this evaluation, we performed our own risk assessment, supported by
our climate change specialists, to determine the risks of material
misstatement in the financial statements from climate change which needed to
be considered in our audit.
We also challenged the Directors' considerations of climate change risks in
their assessment of going concern and viability, and the associated
disclosures. Where considerations of climate change were relevant to our
assessment of going concern, these are described above.
Based on our work, we have considered the impact of climate change on the
financial statements to impact certain key audit matters. Details of our
procedures and findings are included in our explanation of key audit matters
below.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These matters
included those which had the greatest effect on: the overall audit strategy,
the allocation of resources in the audit; and directing the efforts of the
engagement team. These matters were addressed in the context of our audit of
the financial statements as a whole, and in our opinion thereon, and we do not
provide a separate opinion on these matters.
Risk Our response to the risk
Credit Impairment We evaluated the adequacy of the design of the Group's controls over material
ECL balances. Operating effectiveness was tested for those controls upon which
Refer to the Audit Committee Report; Note 8 of the financial statements; we placed reliance.
and relevant credit risk disclosures.
We performed an overall stand-back assessment of the ECL allowance in total
At 31 December 2025, the Group reported a credit impairment balance sheet and by stage. We considered the overall level of geopolitical risk and
provision of $4,408 million (2024: $5,267 million), and an income statement consequent economic uncertainty, credit quality of the Group's portfolios, the
charge of $672 million (2024: $547 million). impact of sovereign risk, challenges facing the Commercial Real Estate sector,
and the uncertainty owing to the US trade and tariff policy. We performed peer
Determining expected credit losses is highly judgemental and subjective as a benchmarking to the extent that this was considered relevant and investigated
result of the significant uncertainty associated with the estimation of and sought explanations for any areas identified as being outliers. Our
expected future credit losses. Assumptions with increased complexity in assessment also included the evaluation of the macroeconomic environment by
respect of the timing and measurement of expected credit losses (ECL) considering trends in the economies and countries to which the Group is
include: exposed.
Staging - The determination of what constitutes a significant increase in Staging - We evaluated the criteria used to allocate financial assets within
credit risk and default and consequent complete and timely allocation of the scope of IFRS 9 to stage 1, 2 or 3. We reperformed the staging
qualifying assets to the appropriate stage in accordance with IFRS 9. distribution for all relevant financial assets. We performed sensitivity
analysis to assess the impact of changes to the quantitative thresholds on the
EAD and ECL. We reperformed the Group's staging effectiveness and investigated
any differences or anomalies.
Page 05
Risk Our response to the risk
Modelled output - Appropriateness of accounting interpretations, modelling To test the completeness of the identification of significant increase in
assumptions, modelling techniques and the data used to determine the credit risk, we challenged the credit risk ratings (including appropriate
Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default operation of quantitative backstops) for a sample of performing accounts and
(EAD) used to calculate the ECL. other accounts exhibiting risk characteristics such as financial difficulty,
deferment of payment, late payment and heightened risk accounts appearing on
Multiple economic scenarios - The determination of the appropriateness of the watchlist.
economic variables, the future forecasting of these variables and the approach
to determine both the base case forecast and the Monte Carlo Simulation. The Modelled output - With the support of EY credit risk modelling specialists, we
assessment of non-linearity produced by the Monte Carlo simulation, the performed a risk assessment over the models used in the ECL calculation using
benchmarking of the output to the discrete scenarios and the evaluation of the independently determined quantitative and qualitative criteria, and applied
need for any overlays. this risk rating to select a sample of models to test. For the selected
models, we assessed the reasonableness of underlying assumptions, methodology
Management overlays and post-model adjustments - Appropriateness, completeness and model build. This included evaluating model design and formulae, model
and valuation of risk event overlays to capture risks not identified by the implementation and validation, model monitoring, sensitivity testing and
credit impairment models, including the consideration of the risk independently recalculating the Probability of Default, Loss Given Default
of management override. and Exposure at Default parameters for a sample of higher risk models.
Individually assessed ECL allowances - Measurement of individual provisions To evaluate data quality, we performed sample testing over the completeness
including the assessment of probability weighted recovery scenarios, existence and accuracy of key data elements assessed to be material to the modelled ECL
and valuation of collateral, and expected future cashflows. output, back to source evidence. We sample tested material data adjustments
to the modelled output.
In 2025, the most material factors impacting the ECL were geopolitical
uncertainty, the impact of the US tariffs, and the idiosyncratic risks at a Economic scenarios - In collaboration with our economic specialists, we
sovereign and sector level. In addition, we considered the impact of climate challenged the completeness and appropriateness of the macroeconomic variables
as part of impairment provisioning. used as inputs to the ECL models.
Overall, economic uncertainty remains elevated with a consequent increased Our economic specialists assisted in evaluating the reasonableness of the base
risk to the downside and therefore in line with the prior year there forecast for a sample of macroeconomic variables most pertinent to the Group's
continues to be an elevated risk of a material misstatement. ECL calculation. Procedures performed included benchmarking the forecast for a
sample of macroeconomic variables to peers, historical data analysis and
examination of a variety of global external sources.
We assessed the appropriateness of the output of the Monte Carlo simulation by
performing a sensitivity test across a sample of economic variables, spanning
multiple markets, using an independent challenger model.
We assessed the reasonableness of the non-linearity produced by the Monte
Carlo simulation and the appropriateness of management's overlay. Our
economists assessed and challenged the Group's choice of discrete scenarios to
benchmark the output from the Monte Carlo model and determine the sensitivity
analysis in the annual report. This challenge included the choice of discrete
scenarios, the weights applied to each scenario and the quantum of the
non‑linearity overlay. We also performed a stand-back assessment by
benchmarking the non-linearity and overall ECL charge and provision coverage
to peers.
Management overlays and post model adjustments - We challenged the
completeness and appropriateness of overlays used for risks not captured by
the models and evaluated the outcome of model monitoring procedures
that highlighted model deficiencies including the need for post model
adjustments. We focused our challenge on idiosyncratic risks at a sector and
sovereign level, including the impact of climate, and the results of model
monitoring procedures. Our procedures included assessing the need
for management overlays and post model adjustments, evaluating the
assumptions and judgments used to determine these taking current market
conditions into account, and computing independent ranges where appropriate.
Individually assessed ECL allowances - We selected a sample of individually
assessed provisions and challenged management's level of provisioning by
performing recalculation procedures. These procedures included challenging
management's forward looking economic assumptions, the appropriateness of the
recovery outcomes, cashflow profiles and timings, and the individual
probability weightings used for each scenario.
We also engaged our valuation specialists to independently assess the value of
collateral used in management's calculations on a sample basis.
In conjunction with our technical accounting experts, we considered the
appropriateness of the accounting treatment applied for material loan
restructurings.
Page 06
Key observations communicated to the Audit Committee How we scoped our audit to respond to the risk and involvement with component
teams
We communicated that the Group's ECL provisions were reasonably estimated and For the purposes of determining the scope of work to be conducted centrally
materially in compliance with IFRS 9. We highlighted the following matters to and by component teams, we considered the following:
the Audit Committee that contributed to our overall conclusion:
• The Group's gross exposure and ECL by market
• Our evaluation of the appropriateness of the significant increase in
credit risk triggers, and the results of our staging reperformance. • The Group's and EY's independent sovereign risk assessment
• Our assessment of the appropriateness of the Group's models to generate • Market of origin for individual defaulted exposures
the ECL including the appropriateness and validity of the data used in the
models. • The Group's material IFRS 9 systems and processes, including modelled
ECL, and where those systems and process were located
• Our evaluation of the completeness and appropriateness of economic
variables, the choice of discrete scenarios, the weightings applied to these Based on this assessment, we determined that specific credit related
scenarios, and the outcome of our challenger model. procedures were required to be performed centrally, and by 8 full scope and 5
specific scope locations.
• Our assessment of the appropriateness of post model adjustments and
overlays, including idiosyncratic overlays relating to sectors, sovereigns, The Group Audit Team`s involvement with the component teams and procedures
climate and non-linearity. performed are detailed in the "Involvement with component teams" section of
our report.
• For individually assessed ECL allowances, the overall reasonableness of
the provisions, including assumptions applied, and collateral valuations.
We continued to highlight to the Committee that there remains increased
uncertainty and volatility in determining expected credit losses due to the
elevated risks in the macroeconomic and geopolitical landscape.
Risk Our response to the risk
Basis of accounting and impairment assessment of China Bohai Bank (Interest in We obtained an understanding of management's process and evaluated the design
Associate) of controls for the accounting and impairment assessment of China Bohai Bank.
Our audit strategy was fully substantive.
Refer to the Audit Committee Report and Note 32 of the financial statements.
Basis of accounting
• Interest in Associate - China Bohai Bank $883 million (2024: $738
million). We evaluated the evidence that the Group presented to demonstrate that it
exercises significant influence over China Bohai Bank, through Board
• Cumulative impairment: $1,485 million (2024: $1,459 million). representation, membership of Board Committees and sharing of technical
expertise.
At 31 December 2025, the Group's share of China Bohai Bank's market
capitalisation was $523m lower than the carrying value of $883m. We observed certain meetings alongside Group management and China Bohai Bank
management to identify facts and circumstances impacting the assessment of
We focused on judgements and estimates, including the appropriateness of the significant influence exercised by the Group.
equity accounting treatment under IAS 28 and the assessment of whether the
investment was impaired. Impairment testing
Basis of accounting We assessed the appropriateness of the Group's VIU methodology for compliance
with accounting standards. We tested the mathematical accuracy of the VIU
The Group holds a 16.26% stake in China Bohai Bank and equity accounts for the model and engaged our valuation and modelling specialists to support the
investment as an associate, on the grounds that the Group is able to exercise audit team in calculating an independent range for the VIU.
significant influence over China Bohai Bank.
We performed audit procedures to assess the reasonableness of the Group's
IAS 28 states that if the entity holds, directly or indirectly, less than 20% forecast of the future cashflows relating to Bohai, and other key assumptions
of the voting power of the investee, it is presumed that the entity does not with regard to the relevance and reliability of data inputs.
have significant influence, unless such influence can be clearly demonstrated.
We performed a stand-back assessment to determine whether the carrying value
There is a risk that the equity accounting treatment may not be appropriate, of the Group's investment in China Bohai Bank was reasonable. We considered
if the Group cannot demonstrate that it exerts significant influence over the macroeconomic environment in China, ratings agency reports and public
China Bohai Bank. disclosures by Bohai. We benchmarked the forecasts to broker reports published
for comparable companies.
Our assessment of the risk in respect of significant influence has not changed
compared to the prior year. We assessed the appropriateness of disclosures in the annual report in
relation to China Bohai Bank, including the impact of reasonably possible
Impairment testing changes in key assumptions on the carrying value of the investment.
At 31 December 2025, China Bohai Bank's market capitalisation was
significantly lower than the carrying value of the investment. Financial
performance in 2025 reflected ongoing market pressures, resulting in muted
results. In addition, China Bohai Bank did not pay a dividend for a third
year.
These matters are indicators of impairment.
Page 07
Risk Our response to the risk
Impairment of the investment in China Bohai Bank is determined by comparing
the carrying value to the higher of value in use (VIU) and fair value less
costs to sell. The VIU is modelled by reference to future cashflow forecasts
(forecast profit, including a haircut for regulatory capital), exit multiples,
discount rate and macroeconomic assumptions such as forward market interest
rate curves. The assumptions underpinning management's assessment of the VIU
are subject to estimation uncertainty and consequently, there is a risk that
if the judgements and assumptions are inappropriate, the investment in China
Bohai Bank may be misstated.
Our assessment of the risk in respect of impairment has not changed compared
to the prior year.
Key observations communicated to the Audit Committee How we scoped our audit to respond to the risk and involvement with component
teams
On the basis of the evidence, we concluded that the Group continues to We performed centralised audit procedures over the risk, with the support of
maintain significant influence over China Bohai Bank as at 31 December 2025. EY Hong Kong and a non-EY Component audit team in performing certain
We highlighted our assessment of the impairment methodology and our view procedures to address the risk.
on significant assumptions to the VIU.
The Group Audit Team's involvement with the component teams and procedures
We concluded that the Interest in Associate - China Bohai Bank balance and the performed are detailed in the Involvement with component audit teams' section
associated financial statement disclosures were not materially misstated as at of our report.
31 December 2025.
Risk Our response to the risk
Valuation of financial instruments held at fair value with higher risk We evaluated the design and operating effectiveness of controls relating to
characteristics (Level 3 and certain Level 2 the valuation of financial instruments, including Independent Price
Verification (IPV), model validation, fair value adjustments, and significant
portfolios) deal review.
Refer to the Audit Committee Report and Note 13 to the financial statements. Among other procedures, we engaged our valuation specialists to assist the
audit team in performing the following testing on a risk-assessed sample
At 31 December 2025, the Group reported financial assets measured at fair basis:
value of $370,745 million (2024: $348,408 million), and financial liabilities
at fair value of $157,801 million (2024: $167,526 million), of which financial · Test valuations dependent on complex models by independently
assets of $12,338 million (2024: $8,053 million) and financial liabilities of revaluing Level 3 and certain Level 2 derivative financial instruments
$5,133 million (2024: $4,937 million) are classified as Level 3 in the fair (including those embedded within customer accounts, debt securities in issue,
value hierarchy. and deposits by banks) to assess the appropriateness of models and the
adequacy of assumptions and inputs used by the Group;
The fair value of financial instruments with higher risk characteristics
involves the use of management judgement in the selection of valuation models · Test valuations of other Level 3 financial instruments with higher
and techniques, pricing inputs and assumptions and fair value adjustments. estimation uncertainty, such as equity shares, loans and advances to
customers, reverse repurchase agreements and other similar secured lending,
A higher level of estimation uncertainty is involved for financial instruments and debt securities and other eligible bills. Where appropriate, we compared
valued using complex models; pricing inputs that have limited observability; management's valuation to our own independently developed range;
and fair value adjustments, including Credit Valuation Adjustments for
illiquid counterparties. · Assessed the appropriateness and observability of pricing inputs as
part of the IPV process and recognition of day 1 P&L; and
We considered the following portfolios presented a higher level of estimation
uncertainty: · Compared the methodology used for fair value adjustments to current
market practice. We revalued a sample of valuation adjustments, compared
• Derivatives: Level 3 and certain Level 2 derivatives (including those market inputs to third party data, and challenged the basis for determining
embedded within customer accounts, debt securities in issue, and deposits by illiquid credit spreads.
banks) whose valuation involves the use of complex models; and
Where differences between our independent valuation and management's valuation
• Other Level 3 financial instruments: equity shares, loans and advances were outside our thresholds, we performed additional testing to assess the
to customers, reverse repurchase agreements and other similar secured lending, impact on the valuation of financial instruments.
and debt securities and other eligible bills with unobservable pricing inputs.
Throughout our audit procedures we considered the continuing uncertainty
The level of risk remains consistent with the prior year. arising from the current macroeconomic environment. In addition, we assessed
whether there were any indicators of aggregate bias in financial instrument
marking and methodology assumptions.
We also assessed management's disclosures regarding fair value measurement.
Page 08
Key observations communicated to the Audit Committee How we scoped our audit to respond to the risk and involvement with component
teams
We concluded that assumptions used by management to estimate the fair value of We performed centralised audit procedures over this risk. These procedures
financial instruments with higher risk characteristics, and the recognition of were performed by the Primary Team and CIB SSC team, covering over 99% of the
related income, were reasonable. We highlighted the following matters to the risk amount.
Audit Committee:
· We did not identify material differences arising from our independent
testing of valuations dependent on complex models;
· The fair values of other Level 3 financial instruments, valued using
pricing inputs with limited observability, were not materially misstated as at
31 December 2025 based on our independent calculations; and
· Valuation adjustments, including Credit Valuation Adjustments for illiquid
counterparties, were appropriate, based on our analysis of market data and
benchmarking of pricing information.
In the prior year, our auditor's report included a key audit matter in relation to the impairment of investments in subsidiaries. Following a re-assessment, in the current year, we no longer consider it a key audit matter.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in
evaluating the effect of identified misstatements on the audit and in forming
our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the
aggregate, could reasonably be expected to influence the economic decisions of
the users of the financial statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the Group to be $390 million (2024: $340
million), which is 5% (2024: 5%) of adjusted profit before tax. This reflects
statutory profit before tax adjusted for certain non-recurring items. We
believe that adjusted profit before tax provides us with the most appropriate
and relevant measure for the users of the financial statements, given the
Group is profit-making, it is consistent with the wider industry, and it is
the standard for listed and regulated entities. This increase from prior year
is driven by an increase in our materiality basis of adjusted profit before
tax and is reflected in all materiality thresholds discussed below.
We determined materiality for the Parent Company to be $351 million (2024:
$306 million), which represents 90% of Group materiality (2024:90%) and
equates to 0.6% (2024: 0.6%) of the equity of the Parent company. We believe
that equity provides us with the most appropriate measure for the users of the
Parent Company's financial statements, given that the Parent Company is
primarily a holding company.
Starting basis • Reported profit before tax - $6,963m
Adjustments • Non-recurring items: $842m
Materiality • Adjusted profit before tax - $7,805m
• Materiality of $390m (5% of adjusted profit before tax)
During the course of our audit, we reassessed initial materiality. This
assessment resulted in a higher final materiality calculated based on the
actual financial performance of the Group for the year. There were no changes
to the basis for materiality from the planning stage.
Performance materiality
The application of materiality at the individual account or balance level. It
is set at an amount to reduce to an appropriately low level the probability
that the aggregate of uncorrected and undetected misstatements
exceeds materiality.
On the basis of our risk assessments, together with our assessment of the
Group's overall control environment, our judgement was that performance
materiality was 50% (2024: 50%) of our planning materiality, namely $195m
(2024: $170m). We have set performance materiality at this percentage due to
a variety of risk factors, such as the expectation of misstatements, internal
control environment considerations, and other factors such as the global
complexity of the Group.
Audit work was undertaken at component locations for the purpose of
responding to the assessed risks of material misstatement of the Group
financial statements. The performance materiality set for each component is
based on the relative scale and risk of the component to the Group as a
whole and our assessment of the risk of misstatement at that component. In
the current year, the range of performance materiality allocated to components
was $19m to $46m (2024: $16m to $46m).
Reporting threshold
An amount below which identified misstatements are considered as being clearly
trivial.
Page 09
We agreed with the Audit Committee that we would report to them all
uncorrected audit differences in excess of $20m (2024: $17m), which is set at
5% of planning materiality, as well as differences below that threshold that,
in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative
measures of materiality discussed above and in light of other relevant
qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the Annual
Report, including the Strategic report, the Financial Review, the
Sustainability Review, the Directors' report, including the information not
marked as 'audited' in the Directors' remuneration report and Other statutory
and regulatory disclosures, the Statement of directors' responsibilities, the
information not marked as 'audited' in the Risk review and Capital review
section, and the Supplementary information, other than the financial
statements and our auditor's report thereon. The directors are responsible for
the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in this report, we do
not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed, we conclude
that there is a material misstatement of the other information, we are
required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors' remuneration report to be audited
has been properly prepared in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors' report
for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
• the strategic report and the directors' report have been prepared in
accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent
Company and its environment obtained in the course of the audit, we have not
identified material misstatements in the strategic report or the directors'
report.
We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or
returns adequate for our audit have not been received from branches not
visited by us; or
• the Parent Company financial statements and the part of the Directors'
Remuneration Report to be audited are not in agreement with the accounting
records and returns; or
• certain disclosures of directors' remuneration specified by law are not
made; or
• we have not received all the information and explanations we require for
our audit.
Corporate Governance Statement
We have reviewed the directors' statement in relation to going concern,
longer-term viability and that part of the Corporate Governance Statement
relating to the Group and Company's compliance with the provisions of the UK
Corporate Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that
each of the following elements of the Corporate Governance Statement is
materially consistent with the financial statements or our knowledge obtained
during the audit:
• Directors' statement with regards to the appropriateness of adopting the
going concern basis of accounting and any material uncertainties identified;
• Directors' explanation as to its assessment of the Company's prospects,
the period this assessment covers and why the period is appropriate;
• Director's statement on whether it has a reasonable expectation that the
Group will be able to continue in operation and meets its liabilities;
• Directors' statement on fair, balanced and understandable;
• Board's confirmation that it has carried out a robust assessment of the
emerging and principal risks;
• The section of the annual report that describes the review of
effectiveness of risk management and internal control systems; and
• The section describing the work of the audit committee.
Page 10
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the
directors are responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view, and for such internal
control as the directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are responsible for
assessing the Group and Parent Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to
liquidate the Group or the Parent Company or to cease operations, or have no
realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and
regulations. We design procedures in line with our responsibilities, outlined
above, to detect irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting
one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion. The
extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud
rests with both those charged with governance of the entity and management.
• We obtained an understanding of the legal and regulatory frameworks that
are applicable to the Group and determined that the most significant are those
that relate to the reporting framework (UK-adopted IAS and EU IFRS, the
Companies Act 2006 and the UK Corporate Governance Code, the Financial Conduct
Authority (FCA) Listing Rules, the Main Board Listing Rules of the Hong Kong
Stock Exchange), regulations and supervisory requirements of the Prudential
Regulation Authority (PRA), FRC, FCA and other overseas regulatory
requirements, including but not limited to regulations in its major markets
such as Mainland China, Hong Kong, India, Republic of Korea, Singapore, the
United Arab Emirates, the United States of America, and the relevant tax
compliance regulations in the jurisdictions in which the Group operates. In
addition, we concluded that there are certain significant laws and regulations
that may have an effect on the determination of the amounts and disclosures in
the financial statements and those laws and regulations relating to regulatory
capital and liquidity, conduct, financial crime including anti-money
laundering, sanctions and market abuse recognising the financial and
regulated nature of the Group's activities.
• We understood how the Group is complying with those frameworks by
performing a combination of inquiries of senior management and those charged
with governance as required by auditing standards, review of board and certain
committee meeting minutes, gaining an understanding of the Group's approach to
governance, inspection of regulatory correspondence in the year and engaging
with internal and external legal counsel. We also engaged EY financial crime
and forensics specialists to perform procedures on areas relating to
anti-money laundering, whistleblowing, and sanctions compliance. Through these
procedures, we became aware of actual or suspected non-compliance. The
identified actual or suspected non-compliance was not sufficiently
significant to our audit that would have resulted in it being identified as
a key audit matter.
• We assessed the susceptibility of the Group's financial statements to
material misstatement, including how fraud might occur by considering the
controls that the Group has established to address risks identified by the
entity, or that otherwise seek to prevent, deter or detect fraud. Our
procedures to address the risks identified also included incorporation of
unpredictability into the nature, timing and/or extent of our testing,
challenging assumptions and judgements made by management in their significant
accounting estimates and journal entry testing.
• Based on this understanding, we designed our audit procedures to
identify non-compliance with such laws and regulations. Our procedures
involved inquiries of the Group's internal and external legal counsel, money
laundering reporting officer, internal audit, certain senior management
executives, and focused testing on a sample basis, including journal entry
testing. We also performed inspection of key correspondence from the relevant
regulatory authorities as well as review of board and committee minutes.
• For instances of actual or suspected non-compliance with laws and
regulations, which have a material impact on the financial statements, these
were communicated by management to the Group audit engagement team and
component teams (where applicable) who performed audit procedures such as
inquiries with management, sending confirmations to external legal counsel,
substantive testing and meeting with regulators. Where appropriate, we
involved specialists from our firm to support the audit team.
• The Group is authorised to provide banking, insurance, mortgages and
home finance, consumer credit, pensions, investments and other activities. The
Group operates in the banking industry which is a highly regulated
environment. As such, the Senior Statutory Auditor considered the experience
and expertise of the Group audit engagement team, the component teams and the
shared service centre teams to ensure that the team had the appropriate
competence and capabilities, which included the use of specialists where
appropriate.
Page 11
A further description of our responsibilities for the audit of the financial
statements is located on the Financial Reporting Council's website at
https://www.frc.org.uk/auditorsresponsibilities. This description forms part
of our auditor's report.
Other matters we are required to address
• Following the recommendation from the audit committee, we were
re-appointed by the Company on 8 May 2025 to audit the financial statements
for the year ending 31 December 2025 and subsequent financial periods.
• The period of total uninterrupted engagement including previous renewals
and reappointments is six years, covering the years ending 31 December 2020 to
31 December 2025.
• The audit opinion is consistent with the additional report to the audit
committee.
Use of our report
This report is made solely to the company's members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company's members those matters we
are required to state to them in an auditor's report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company's members as a
body, for our audit work, for this report, or for the opinions we have formed.
Micha Missakian
Senior statutory auditor
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
24 February 2026
Page 12
Consolidated income statement
For the year ended 31 December 2025
Notes 2025 2024
$million
$million
Interest income 24,547 27,862
Interest expense (18,592) (21,496)
Net interest income 3 5,955 6,366
Fees and commission income 5,349 4,623
Fees and commission expense (1,100) (889)
Net fee and commission income 4 4,249 3,734
Net trading income 5 10,294 9,615
Other operating income 6 444 (172)
Operating income 20,942 19,543
Staff costs (9,109) (8,510)
Premises costs (434) (401)
General administrative expenses (2,591) (2,465)
Depreciation and amortisation (1,170) (1,126)
Operating expenses 7 (13,304) (12,502)
Operating profit before impairment losses and taxation 7,638 7,041
Credit impairment 8 (672) (547)
Goodwill, property, plant and equipment and other impairment 9 (65) (588)
Profit from associates and joint ventures 32 62 108
Profit before taxation 6,963 6,014
Taxation 10 (1,866) (1,972)
Profit for the year 5,097 4,042
Profit attributable to:
Non-controlling interests 29 12 (8)
Parent company shareholders 5,085 4,050
Profit for the year 5,097 4,042
cents cents
Earnings per share:
Basic earnings per ordinary share 12 195.4 141.3
Diluted earnings per ordinary share 12 189.6 137.7
The notes form an integral part of these financial statements.
Page 13
Consolidated statement of comprehensive income
For the year ended 31 December 2025
Notes 2025 2024
$million
$million
Profit for the year 5,097 4,042
Other comprehensive income/(loss):
Items that will not be reclassified to income statement: 198 (181)
Own credit losses on financial liabilities designated at fair value through (154) (426)
profit or loss
Equity instruments at fair value through other comprehensive income 371 71
Actuarial (loss)/gain on retirement benefit obligations 30 (11) 52
Revaluation surplus 5 25
Taxation relating to components of other comprehensive income 10 (13) 97
Items that may be reclassified subsequently to income statement: 1,520 (389)
Exchange differences on translation of foreign operations:
Net gains/(losses) taken to equity 788 (1,423)
Net gains on net investment hedges 14 129 678
Share of other comprehensive (loss)/income from associates and joint ventures 32 (28) 9
Debt instruments at fair value through other comprehensive income
Net valuation gains taken to equity 296 283
Reclassified to income statement 6 10 237
Net impact of expected credit losses 22 (35)
Cash flow hedges:
Net movements in cash flow hedge reserve 14 368 (101)
Taxation relating to components of other comprehensive income 10 (65) (37)
Other comprehensive income/(loss) for the year, net of taxation 1,718 (570)
Total comprehensive income for the year 6,815 3,472
Total comprehensive income attributable to:
Non-controlling interests 29 45 (22)
Parent company shareholders 6,770 3,494
Total comprehensive income for the year 6,815 3,472
Page 14
Consolidated balance sheet
As at 31 December 2025
Notes 2025 2024
$million
$million
Assets
Cash and balances at central banks 13,35 77,746 63,447
Financial assets held at fair value through profit or loss 13 195,257 177,517
Derivative financial instruments 13,14 65,782 81,472
Loans and advances to banks 13,15 43,901 43,593
Loans and advances to customers 13,15 286,788 281,032
Investment securities 13 166,956 144,556
Other assets 20 67,931 43,468
Current tax assets 10 574 663
Prepayments and accrued income 3,058 3,207
Interests in associates and joint ventures 32 1,426 1,020
Goodwill and intangible assets 17 6,231 5,791
Property, plant and equipment 18 2,559 2,425
Deferred tax assets 10 493 414
Retirement benefit schemes in surplus 154 151
Assets classified as held for sale 21 1,099 932
Total assets 919,955 849,688
Liabilities
Deposits by banks 13 30,846 25,400
Customer accounts 13 530,161 464,489
Repurchase agreements and other similar secured borrowing 13,16 7,757 12,132
Financial liabilities held at fair value through profit or loss 13 89,597 85,462
Derivative financial instruments 13,14 68,204 82,064
Debt securities in issue 13,22 72,858 64,609
Other liabilities 23 46,655 44,681
Current tax liabilities 10 709 726
Accruals and deferred income 7,358 6,896
Subordinated liabilities and other borrowed funds 13,27 8,834 10,382
Deferred tax liabilities 10 752 567
Provisions for liabilities and charges 24 401 349
Retirement benefit schemes in deficit 323 266
Liabilities included in disposal groups held for sale 21 914 381
Total liabilities 865,369 798,404
Equity
Share capital and share premium account 28 6,614 6,695
Other reserves 10,406 8,724
Retained earnings 29,573 28,969
Total parent company shareholders' equity 46,593 44,388
Other equity instruments 28 7,528 6,502
Total equity excluding non-controlling interests 54,121 50,890
Non-controlling interests 29 465 394
Total equity 54,586 51,284
Total equity and liabilities 919,955 849,688
The notes form an integral part of these financial statements.
These financial statements were approved by the Board of directors and
authorised for issue on 24 February 2026 and signed on its behalf by:
Maria Ramos Bill Winters
Group Chair Group Chief Executive
Page 15
Consolidated statement of changes in equity
For the year ended 31 December 2025
Ordinary share capital and share premium account Preference 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 earnings Parent company share-holders' equity Other equity instruments Non-controlling interests Total
$million share capital and share premium account $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 year - - - - - - - - 4,050 4,050 - (8) 4,042
Other comprehensive (loss)/ income(10) - - - (377) 442 (26)(8) (87) (735) 227(2,9) (556) - (14) (570)
Distributions - - - - - - - - - - - (43) (43)
Other equity instruments issued, net of expenses - - - - - - - - - - 1,568 - 1,568
Redemption of other equity instruments - - - - - - - - - - (553) - (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) (120) - 120 - - - - - (2,500) (2,500) - - (2,500)
Other movements - - - (1) 7 - - 210(3) (131)(4) 85 (25) 63(5) 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 year - - - - - - - - 5,085 5,085 - 12 5,097
Other comprehensive (loss)/income(10) - - - (134) 284 236(8) 311 885 103(2,9) 1,685 - 33 1,718
Distributions - - - - - - - - - - - (50) (50)
Other equity instruments issued, net of expenses - - - - - - - - - - 1,989 - 1,989
Redemption of other equity instruments - - - - - - - - - - (1,000) - (1,000)
Treasury shares net movement - - - - - - - - (452) (452) - - (452)
Share option expense, net of taxation - - - - - - - - 220 220 - - 220
Dividends on ordinary shares - - - - - - - - (954) (954) - - (954)
Dividends on preference shares and AT1 securities - - - - - - - - (527) (527) - - (527)
Share buyback(7) (81) - 81 - - - - - (2,800) (2,800) - - (2,800)
Other movements - - - - (27) - - 46 (71) (52) 37 76(5) 61
As at 31 December 2025 5,120 1,494 17,654 (412) 16 540 315 (7,707) 29,573 46,593 7,528 465 54,586
1 Includes capital reserve of $5 million (31 December 2024: $5 million),
capital redemption reserve of $538 million (31 December 2024: $457 million)
and merger reserve of $17,111 million (31 December 2024: $17,111 million).
2 Includes actuarial (loss)/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 Mainly includes movements related to Ghana hyperinflation.
5 Movements are primarily from non-controlling interest (refer note 29).
6 During 2024, the Group announced the following share buybacks: a share
buyback of up to $1,000 million in February 2024, which was completed in June
2024; and a share buyback of up to $1,500 million in July 2024, which was
completed in January 2025 (refer note 28 for share buyback announced in July
2024).
7 During 2025, the Group announced the following share buybacks: a share
buyback of up to $1,500 million in February 2025, which was completed in July
2025; and a share buyback of up to $1,300 million in July 2025, which was
completed in January 2026 (refer note 28).
8 Includes $348 million (31 December 2024: $72 million) mark-to-market gain
on equity instruments (net of tax), $103 million (31 December 2024: $174
million) relating to transfer of gain on sale of equity investment to retained
earnings and reversal of deferred tax liability $9 million (31 December 2024:
$76 million reversal of deferred tax asset). For movement in deferred tax
refer Note 10.
9 Includes $103 million (31 December 2024: $174 million) gain on sale of
equity investment in other comprehensive income reserve transferred to
retained
earnings partly offset by $9 million (31 December 2024: $13 million) capital
gain tax.
10 All the amounts are net of tax.
Note 28 includes a description of each reserve.
The notes form an integral part of these financial statements.
Page 16
Cash flow statement
For the year ended 31 December 2025
Notes Group Company
2025 2024 2025 2024
$million
$million
$million
(Restated)(2)
$million
Cash flows from operating activities:
Profit before taxation 6,963 6,014 4,544 3,424
Adjustments for non-cash items and other adjustments included within income 34 1,985 2,668 (3,083) (1,670)
statement
Change in operating assets 34 (28,128) (66,431) (1,234) 682
Change in operating liabilities 34 57,919 39,373 1,954 (137)
Contributions to defined benefit schemes 30 (94) (68) - -
UK and overseas taxes paid 10 (1,804) (2,045) - -
Net cash from/(used in) operating activities 36,841 (20,489) 2,181 2,299
Cash flows from investing activities:
Internally generated capitalised software 17 (1,037) (953) - -
Disposal of Internally generated capitalised software 17 7 5 - -
Purchase of property, plant and equipment 18 (320) (456) - -
Disposal of property, plant and equipment 18 30 56 - -
Disposal of held for sale property, plant and equipment 21 128 53 - -
Acquisition of investment associates, and joint ventures 32 (104) (12) - -
Dividends received from subsidiaries, associates and joint ventures 32,34 47 36 5,160 4,101
Disposal of investment in subsidiaries, associates, and joint ventures(1) 48 74 - -
Purchase of investment securities (208,814) (217,448) (223) (1,287)
Disposal and maturity of investment securities 191,697 230,098 1,127 1,273
Net cash (used in)/from investing activities (18,318) 11,453 6,064 4,087
Cash flows from financing activities:
Exercise of share options 56 33 56 33
Purchase of own shares (508) (201) (508) (201)
Cancellation of shares including share buyback (2,719) (2,500) (2,719) (2,500)
Premises and equipment lease liability principal payment (205) (205) - -
Issue of Additional Tier 1 Capital net of expenses 28 1,989 1,568 1,989 1,568
Redemption of Tier 1 Capital 28 (1,000) (553) (1,000) (553)
Interest paid on subordinated liabilities 34 (421) (519) (410) (505)
Repayment of subordinated liabilities 34 (2,174) (1,517) (2,174) (1,517)
Proceeds from issue of senior debts 34 11,583 11,044 7,955 7,422
Repayment of senior debts 34 (9,364) (11,185) (4,752) (6,222)
Interest paid on senior debts 34 (1,892) (1,366) (1,576) (1,367)
Net cash inflow from non-controlling interest 29 40 55 - -
Distributions and dividends paid to non-controlling interests, preference (577) (500) (527) (457)
shareholders and AT1 securities
Dividends paid to ordinary shareholders (954) (780) (954) (780)
Net cash used in financing activities (6,146) (6,626) (4,620) (5,079)
Net increase/(decrease) in cash and cash equivalents 12,377 (15,662) 3,625 1,307
Cash and cash equivalents at beginning of the year 89,928 107,635 11,601 10,294
Effect of exchange rate movements on cash and cash equivalents 2,617 (2,045) - -
Cash and cash equivalents at end of the year 35 104,922 89,928 15,226 11,601
1 2025 includes disposal of Standard Chartered Bank Cameroon S.A. ($ 29
million), Standard Chartered Tanzania Nominees Limited - WRB business
($13 million), Standard Chartered Bank Gambia Limited ($6 million). 2024
balance includes disposal of SCB Zimbabwe Limited ($24 million), SCB Angola
S.A. ($10 million), SCB Sierra Leone Limited ($17 million), Shoal limited ($17
million) and Autumn life Pte. Ltd ($6 million).
2 Refer to note 34 for details for the restatement
Interest received was $24,303 million (31 December 2024: $28,224 million),
interest paid was $18,573 million (31 December 2024: $21,776 million).
Page 17
Notes to the financial statements
Section Note
Basis of preparation 1 Accounting policies
Performance/return 2 Segmental information
3 Net interest income
4 Net fees and commission
5 Net trading income
6 Other operating income
7 Operating expenses
8 Credit impairment
9 Goodwill, property, plant and equipment and other impairment
10 Taxation
11 Dividends
12 Earnings per ordinary share
Assets and liabilities held at fair value 13 Financial instruments
14 Derivative financial instruments
Financial instruments held at amortised cost 15 Loans and advances to banks and customers
16 Reverse repurchase and repurchase agreements including other similar lending
and borrowing
Other assets and investments 17 Goodwill and intangible assets
18 Property, plant and equipment
19 Leased assets
20 Other assets
21 Assets held for sale and associated liabilities
Funding, accruals, provisions, contingent liabilities and legal proceedings 22 Debt securities in issue
23 Other liabilities
24 Provisions for liabilities and charges
25 Contingent liabilities and commitments
26 Legal and regulatory matters
Capital instruments, equity and reserves 27 Subordinated liabilities and other borrowed funds
28 Share capital, other equity instruments and reserves
29 Non-controlling interests
Employee benefits 30 Retirement benefit obligations
31 Share-based payments
Scope of consolidation 32 Investments in subsidiary undertakings, joint ventures and associates
33 Structured entities
Cash flow statement 34 Cash flow statement
35 Cash and cash equivalents
Other disclosure matters 36 Related party transactions
37 Post balance sheet events
38 Auditor's remuneration
39 Standard Chartered PLC (Company)
40 Re-presentation tables of Credit risk disclosures by key geography
41 Related undertakings of the Group
42 Dealings in Standard Chartered PLC listed securities
43 Corporate governance
Page 18
Notes to the financial statements
1. Accounting policies
Statement of compliance
The Group financial statements consolidate Standard Chartered PLC (the
Company) and its subsidiaries (together referred to as the Group) and equity
account the Group's interests in associates and jointly controlled entities.
The parent company financial statements present information about the Company
as a separate entity.
The Group financial statements 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. The Company financial statements have been prepared in accordance
with UK-adopted international accounting standards as applied in conformity
with section 408 of the Companies Act 2006. The financial statements have been
prepared in accordance with the requirements of the Companies Act 2006.
The following parts of the Risk review and Capital review form part of these
financial statements:
a) Risk review: Disclosures marked as 'audited' from the start of the Credit
Risk section to the end of Other principal risks in the same section.
b) Capital review: Tables marked as 'audited' from the start of 'CRD Capital
base' to the end of 'Movement in total capital', excluding 'Total
risk-weighted assets'.
Basis of preparation
The consolidated and Company financial statements have been prepared on a
going concern basis and under the historical cost convention, as modified by
the revaluation of cash-settled share-based payments, fair value through other
comprehensive income, and financial assets and liabilities (including
derivatives) at fair value through profit or loss.
The consolidated financial statements are presented in United States dollars
($), being the presentation currency of the Group and functional currency of
the Company, and all values are rounded to the nearest million dollars, except
when otherwise indicated.
Re-presentation of segmental information
During the period there has been a change with respect to the classification
of income attributable to geographic markets which has been re-presented to
ensure recognition is in line with transfer pricing principles for services
performed including origination, structuring, booking, and risk management.
This is necessary to align the presentation of the disclosure of geographic
markets' operating income with client segments in line with the Regulatory
News Service (RNS) filing on Re-Presentation of Financial Information issued
on 2 April 2025. Prior period amounts have been re-presented in line with the
current year basis of preparation to align with the information reviewed by
the Chief Operating Decision Maker (CODM). Where the re-presentation has
impacted disclosure, it is included within the footnotes in the following
sections and tables:
• Statement of results table
• Group Chief Financial Officer's review, Summary of financial performance
table
• Financial review tables including the following: Operating income by
product, profit before tax by client segment, Adjusted net interest income and
margin, and Restructuring, DVA, FFG and other items
• Supplementary financial information tables including the following:
Underlying performance by client segment, Corporate & Investment Banking,
Wealth & Retail Banking, Ventures, Central & other items, Underlying
performance by key market, and Quarterly underlying operating income by
product
• Underlying versus reported results reconciliations, Net interest income
and Non NII table
• Movement in risk-weighted assets
• Risk review: Movement tables for Corporate & Investment Banking
(audited), Wealth & Retail Banking (audited), and Wealth & Retail
Banking - Secured (audited)
• Risk review: Credit impairment charge (audited)
• Notes to the financial statements: Note 2 Segmental information and Note
4 Net fees and commission
Comparatives
Certain comparatives on the Company Cash flow Statement have been restated to
align with the current year presentation. This restatement has no impact to
the Company's Income Statement, Statement of Comprehensive Income, Balance
Sheet and Statement of Changes in Equity. Details of these changes are set out
in the relevant sections and notes below:
• Cash flow statement
• Note 34 Cash flow statement
Page 19
Change in accounting policy
Prior year amounts for certain Credit risk tables (required by IFRS 7 -
Financial Instruments: Disclosures) within the Risk review were also
represented for a change in accounting policy for the presentation of the
Group's geo-graphic disclosures to align to information reported to key
management personnel. These disclosures changed from being based on a
management view, which was principally the location from which a client
relationship is managed, to being based on a view reflecting the location in
which exposures are financially booked. This change provides more relevant
information because it more closely reflects the Group's exposure to risk
presented to key management personnel. The change impacted the following
tables: Loans and advances analysis by client segment, credit quality and key
geography, Forborne and other modified loans by key geography, and Industry
and Retail Products analysis of loans and advances by key geography -
Corporate & Investment Banking and Central & other items. The most
significant impact of this change was in net loans and advances to customers
in the UK, which increased by $14.6 billion. This amount was re-classified
from a number of geographic locations. There has been no impact to Earnings
Per Share or Diluted Earnings per Share from this change. Refer to the bridge
tables in Note 40 for a reconciliation between the tables previously disclosed
at 31 December 2024 and the re-presented tables in these financial statements.
Significant and other accounting estimates and judgements
In determining the carrying amounts of certain assets and liabilities, the
Group makes assumptions of the effects of uncertain future events on those
assets and liabilities at the balance sheet date. The Group's estimates and
assumptions are based on historical experience and expectation of future
events and are reviewed periodically. Further information about key
assumptions concerning the future, and other key sources of estimation
uncertainty and judgement, are set out in the relevant disclosure notes for
the areas set out under the relevant headings below:
Significant accounting estimates and critical judgements
Significant accounting estimates and judgements represent those items that
have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next year. Significant accounting
estimates and judgements are:
• Expected credit loss calculations (Note 8)
• Financial instruments measured at fair value (Note 13)
• Investments in subsidiary undertakings, joint ventures and associates -
China Bohai associate accounting and impairment analysis (Note 32)
Macroeconomic and geopolitical uncertainty is already embedded in the estimate
of forward-looking cash flows that affect the estimate of Expected credit loss
calculations and impact the recoverability of certain assets, including of
goodwill, deferred tax assets and investments in subsidiary undertakings.
Other areas of accounting estimate and judgement
Other areas of accounting estimate and judgement do not meet the definition
under IAS 1 of significant accounting estimates or critical accounting
judgements, but the recognition of certain material assets and liabilities are
based on assumptions and/or are subject to long-term uncertainties. The other
areas of accounting estimate and judgement are:
• Taxation (Note 10)
• Goodwill and intangible assets - Goodwill impairment and Capitalisation
of internally generated software intangibles (Note 9 and Note 17)
• Provisions for liabilities and charges - Other provisions (Note 24)
• Legal and regulatory matters (Note 26)
• Retirement benefit obligations (Note 30)
• Share-based payments (Note 31)
Climate change impact on the Group's balance sheet
Climate, and the impact of climate on the Group's balance sheet is considered
as an area which can impact accounting estimates and judgments through the
uncertainty of future events and the impact of that uncertainty on the Group's
assets and liabilities, performance, or cash flows.
The Group has assessed the impact of climate risk on the financial report.
This is set out within the non-financial and sustainability information
statement and the Sustainability Review, which incorporate the Group's
climate-related disclosures which align with the recommendations from the Task
Force for Climate related Financial Disclosures (TCFD) and Hong Kong Listing
Requirements. Further risk disclosures have been provided in the Principal
Risks and Uncertainties section of the Annual Report where the Group has
described how it manages climate risk, which manifests through the Group's
business and operations and impact the relevant Principal Risk Types (PRTs).
This is managed via the ESGR Risk Type framework.
The areas of impact where judgements and the use of estimates have been
applied were credit risk and the impact on lending portfolios; ESG features
within issued loans and bonds; physical risk on our mortgage lending
portfolio; and the corporate plan, in respect of which forward looking cash
flows impact the recoverability of certain assets, including of goodwill,
deferred tax assets and investments in subsidiary undertakings. However, these
did not result in any material change to this year's balance sheet or income
statement.
Page 20
Transition risk, as our clients move to lower carbon emitting revenues,
(either by virtue of legislation, technological advancement, or changing end
customer preference) is considered with reference to client transition
pathways and manifests over a longer term than the maturity of the loan book
(up to 2050). The setting of net zero targets, which covers our 12 highest
emitting sectors, manages transition risk. Net zero targets, climate risk
questionnaires which are used to assess clients for transition risks and the
credibility of their transition plan (CTP) enable the portfolio managers to
work with our clients on their transition and deploy capital to those clients
which are engaged and have adequate transition pathways. All of these actions
manage the Group's transition risk and engage clients before transition risk
manifests itself into credit losses. We have also evaluated transition risk to
achieve net zero in our own operations. We use scenario analysis to evaluate
how various Transition Risk scenarios impact Loan Impairment intensities.
These scenarios consider climate transition costs including the impact of
rising carbon prices, technology investment costs and changes in carbon
intensities.
While physical risk is included within the majority of our mortgage lending
decisions, we have also applied scenario analysis against the pathways of
different temperature outcomes to examine exposure concentration risk in key
markets subject to the extreme risk of floods and storms to assess the acute
physical risk, and sea level rise to assess the chronic physical risk.
Stranded assets analysis was conducted for residential mortgages to identify
properties that are expected to become uninhabitable and/or unusable due to
increased frequency and intensity of physical risk events from acute and
chronic risks. We evaluate the physical risk vulnerabilities of our existing
sites, both existing and new on a periodic basis. Across 2025 we focussed on
sites hosting important business services, especially those vulnerable to
extreme Physical Risks, to strengthen resilience, and have initiated an
evaluation of Physical Risk vulnerabilities at our primary supplier's delivery
sites to proactively address potential business disruptions. Additionally, we
assess the impact of climate risk on the classification of financial
instruments under IFRS 9, when Environmental, Social or Governance (ESG)
triggers may affect the cash flows received by the Group under the
contractual terms of the instrument.
The ESGR Risk team has performed a quantitative assessment of the impact of
climate risk on the IFRS 9 ECL provision. This assessment was performed across
both the CIB and WRB portfolios. The climate risk impact assessment on IFRS 9
business as usual ECL has been conducted based on internal climate risk models
for six Corporate priority sectors (Oil and Gas, Power, Steel, Mining,
Shipping, and Automotive), one Generic Carbon Elasticity Model (CEM) for the
remaining Corporate sectors, an enhanced Sovereign Climate Probability of
Default (PD) model, newly developed Project Finance (PF) and Shipping Finance
(SF) PD models, and Retail Mortgages Loss Given Default (LGD) models (for top
four countries). The top-down approach is used for the remaining portfolios
without internal climate risk models. The impact assessment resulted in only
an immaterial ECL increase across CIB and WRB, which has been recorded as a
management overlay for the 2025 year end.
The Group's corporate plan has a five-year outlook and considers the highest
emitting sectors the Group finances. The majority of the Group sector targets
are production/physical intensities which allow continued levels of lending as
long as the products the client produce have a decreasing carbon cost. For
coal mining and oil and gas, these sectors have absolute targets which
represent a decreasing carbon budget. Coal mining is an immaterial book, while
for oil and gas lending is being actively monitored on a portfolio basis
towards lower carbon counterparties and technologies. The corporate plan is
shorter term than many of the climate scenario outlooks but seeks to capture
the nearer term performance as required by recoverability models. The Group
has for the fourth time in the 2026 corporate plan included anticipated credit
impairment charges, now across eleven NZ sectors (Aviation, Auto, Power, Oil
and Gas, Commercial Real Estate, Cement, Agriculture, Shipping, Aluminium,
Steel and Coal). This addition of credit impairment has not in itself,
materially impacted the recoverability of assets supported by discounted cash
flow models (such as Value in Use) which utilise the corporate plan.
The Group has progressively strengthened its scenario analysis capabilities
with the modelling of Climate Risk impact over a 30-year period across
multiple dimensions including scenario data and pathways across CIB and WRB
portfolios. While we have taken the first step in our journey to transition
from our reliance on vendor models to in-house capabilities, challenges
underpin the scenario analysis, such as reliance on nascent methodologies,
dependencies on first generation models and data limitations. Notwithstanding
these challenges, our work to date, using certain assumptions and proxies,
indicates that our business is resilient to all Network of Central Banks and
Supervisors for Greening the Financial System (NGFS) scenarios that were
explored.
The Group, although acknowledging the limitations of current data available,
increasing sophistication of models evolving and nascent nature of climate
impacts on internal and client assets, considers Climate Risk to have limited
quantitative impact in the immediate term, and as a longer-term risk is
expected to be addressed through its business strategy and financial planning
as the Group implements its net zero journey. Accordingly, the Group does not
currently anticipate any significant residual impact on its financial
position, performance or cashflows over the short, medium or long term.
While providing more detail would be market sensitive, the Group current and
anticipated future performance of opportunities can be seen in the progression
of our Sustainable Finance mobilisation, assets and liabilities, and revenue,
as described within the Sustainability Review.
IFRS and Hong Kong accounting requirements
As required by the Hong Kong Listing Rules, an explanation of the differences
in accounting practices between UK-adopted international accounting standards
and EU IFRS, and Hong Kong Financial Reporting Standards is required to be
disclosed. There would be no significant differences had these accounts been
prepared in accordance with Hong Kong Financial Reporting Standards.
New accounting standards adopted by the Group
There were no new accounting standards or interpretations adopted by the Group
that had a material effect on the Group's Financial Statements in 2025.
Page 21
IFRS 18 Presentation and Disclosure in Financial Statements
The new standard IFRS 18 was issued in April 2024 and is effective for annual
reporting periods beginning on or after 1 January 2027 but earlier application
is permitted. This new standard replaces IAS 1 Presentation of Financial
Statements and amends IAS 7 Statement of Cash Flows. IFRS 18 introduces three
defined categories for income and expenses ‒ operating, investing and
financing ‒ to improve the structure of the income statement, and requires
all companies to provide new defined subtotals, including operating profit.
IFRS 18 will require disclosure of explanations of company-specific measures
that are related to the income statement, referred to as management-defined
performance measures. IFRS 18 sets out enhanced guidance on how to organise
information and whether to provide it in the primary financial statements or
in the notes. The Group will apply IFRS 18 for annual reporting periods
beginning on 1 January 2027 and while the Group assessment remains ongoing,
it is currently not expected to have a material impact on the Group's
financial statements other than changes in the presentation of the primary
statements.
IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures
In May 2024, the IASB issued Amendments to the Classification and Measurement
of Financial Instruments which amended requirements related to settling
financial liabilities using an electronic payment system and assessing
contractual cash flow characteristics of financial assets, including those
with environmental, social and governance (ESG)-linked features. The IASB also
amended disclosure requirements relating to investments in equity instruments
designated at fair value through other comprehensive income and added
disclosure requirements for financial instruments with contingent features
that do not relate directly to basic lending risks and costs. The amendments
will be effective for annual reporting periods beginning on or after 1 January
2026. The amendments are not expected to have a material impact on the Group's
financial statements.
Going concern
These financial statements were approved by the Board of directors on 24
February 2026. The directors have made an assessment of the Group's ability to
continue as a going concern. This assessment has been made having considered
the current macroeconomic and geopolitical headwinds, including:
• Review of the Group Strategy and Corporate Plan, including the annual
budget.
• An assessment of the actual performance to date, loan book quality,
credit impairment, legal and regulatory matters, compliance matters, recent
regulatory developments.
• Consideration of stress testing performed, including the Group Recovery
Plan (RP) which include the application of stressed scenarios. Under the tests
and through the range of scenarios, the results of these exercises and the RP
demonstrate that the Group has sufficient capital and liquidity to continue as
a going concern and meet minimum regulatory capital and liquidity
requirements.
• Analysis of the capital position of the Group, including the capital and
leverage ratios, and Internal Capital Adequacy Assessment Process (ICAAP),
which summarises the Group's capital and risk assessment processes, assesses
its capital requirements and the adequacy of resources to meet them.
• Analysis of the funding and liquidity position of the Group, including
the Internal Liquidity Adequacy Assessment Process (ILAAP), which considers
the Group's liquidity position, its framework and whether sufficient liquidity
resources are being maintained to meet liabilities as they fall due, was also
reviewed. Further, funding and liquidity was considered in the context of the
risk appetite metrics, including the LCR ratio.
• The level of debt in issue, including redemptions and issuances during
the year, debt falling due for repayment in the next 12 months and further
planned debt issuances, including the appetite in the market for the Group's
debt.
• The Group's portfolio of debt securities held at amortised cost.
• A detailed review of all principal risks as well as topical and emerging
risks.
Based on the analysis performed, the directors confirm they are satisfied that
the Group has adequate resources to continue in business for a period of at
least 12 months from 24 February 2026.
For this reason, the Group continues to adopt the going concern basis of
accounting for preparing the financial statements.
Page 22
2. Segmental information
Basis of preparation
Underlying segment and market performance is based on arms-length transfer
pricing and reflects the underlying profitability including related capital
and infrastructure costs. Income attribution to segment and markets is based
on their contribution to the revenue generated across the network, considering
factors such as booking location, trader and sales effort. Treasury outcomes
such as MREL, FTP, Structural Hedges and Liquidity Pool which segments can
directly benefit, influence, and optimise are allocated to individual business
segments. The analysis reflects how the client segments and markets are
managed internally to drive better decision-making, resource allocation and
return outcomes.
Disclosures have been re-presented as explained in Note 1 'Re-presentation of
segmental information'. The effect of the change has impacted the
classification of cost and income across client segments.
Client segments
The Group's segmental reporting is in accordance with IFRS 8 Operating
Segments and is reported consistently with the internal performance framework
and as presented to the Group's Management Team.
Restructuring and other items excluded from underlying results
The Group's reported IFRS performance is adjusted for certain items to arrive
at alternative performance measures. These items include 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 consistent performance period by period.
The alternative performance measures are not within the scope of IFRS and not
a substitute for IFRS measures. These adjustments are set out below.
Restructuring and other items loss of $937 million primarily relate to the
exits in AME, Debit Valuation Adjustment (DVA) and reflect the impact of
actions to transform the organisation to improve productivity, primarily
additional redundancy charges, simplifying technology platforms and optimising
the Group's office space and property footprint, Fit For Growth costs that are
primarily severance costs, costs of staff working on FFG initiatives, legal
and professional fees and an additional provision with respect to a proposed
penalty amount with regards to the Korea equity-linked securities (ELS) matter
and the settlement of a litigation matter.
Reconciliations between underlying and reported results are set out in the
tables below:
2025
Underlying Restructuring(1) FFG(1) DVA Net loss on businesses disposed of/ Other Reported
$million $million $million $million held for sale(2) items(3,4,5) $million
$million $million
Operating income(4) 20,894 (24) - (31) (10) 113 20,942
Operating expenses(5) (12,347) (289) (510) - - (158) (13,304)
Operating profit/(loss) before impairment losses and taxation 8,547 (313) (510) (31) (10) (45) 7,638
Credit impairment (676) 4 - - - - (672)
Other impairment (42) (2) (21) - - - (65)
Profit from associates and joint ventures 71 (9) - - - - 62
Profit/(loss) before taxation 7,900 (320) (531) (31) (10) (45) 6,963
2024
Operating income 19,696 103 - (24) (232) - 19,543
Operating expenses (11,790) (456) (156) - - (100)(3) (12,502)
Operating profit/(loss) before impairment losses and taxation 7,906 (353) (156) (24) (232) (100) 7,041
Credit impairment (557) 10 - - - - (547)
Other impairment (588) - - - - - (588)
Profit from associates and joint ventures 50 58 - - - - 108
Profit/(loss) before taxation 6,811 (285) (156) (24) (232) (100) 6,014
1 FFG (Fit for Growth) charge previously reported within Restructuring has
been re-presented as a separate item.
2 Net loss on businesses disposed of/ held for sale 2025 include Cameroon
and Gambia loss on business disposal $5 million each, 2024 include $172
million primarily relating to recycling of FX translation losses from reserves
into P&L on the sale of Zimbabwe, $26 million loss on sale of Angola, $19
million loss on Sierra Leone and $15 million loss on the Aviation business
disposal.
3 Other items 2024 include $100 million charge relating to Korea
equity-linked securities (ELS) portfolio.
4 Other items 2025 operating income include gain on sale of office space.
5 Other items 2025 operating expenses include a provision relating to the
Korea equity-linked securities and the settlement of a litigation matter.
Page 23
Underlying performance by client segment
2025 2024(1)
Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures Central & other items $million Total Corporate & Investment Banking $million Wealth & Retail Banking Ventures Central & other items Total
$million $million $million $million $million $million
Operating income 12,394 8,464 415 (379) 20,894 11,935 8,021 183 (443) 19,696
External 11,718 3,619 416 5,141 20,894 10,480 3,533 184 5,499 19,696
Inter-segment 676 4,845 (1) (5,520) - 1,455 4,488 (1) (5,942) -
Operating expenses (6,509) (4,982) (461) (395) (12,347) (6,334) (4,749) (460) (247) (11,790)
Operating profit/(loss) before impairment losses and taxation 5,885 3,482 (46) (774) 8,547 5,601 3,272 (277) (690) 7,906
Credit impairment (4) (595) (59) (18) (676) 120 (623) (73) 19 (557)
Other impairment (6) (4) (23) (9) (42) (290) (112) (18) (168) (588)
Profit from associates and joint ventures - - (39) 110 71 - - (17) 67 50
Underlying profit/(loss) before taxation 5,875 2,883 (167) (691) 7,900 5,431 2,537 (385) (772) 6,811
Restructuring & Other items(2,5) (525) (456) (4) 48 (937) (234) (315) (3) (245) (797)
Reported profit/(loss) before taxation 5,350 2,427 (171) (643) 6,963 5,197 2,222 (388) (1,017) 6,014
Total assets 516,923 130,489 8,335 264,208 919,955 485,680 122,357 6,259 235,392 849,688
Of which: loans and advances to customers 205,493 126,980 2,660 14,453 349,586 197,582 119,263 1,388 21,324 339,557
Loans and advances to customers 142,698 126,978 2,659 14,453 286,788 139,063 119,257 1,388 21,324 281,032
Loans held at fair value through profit or loss (FVTPL)(3) 62,795 2 1 - 62,798 58,519 6 - - 58,525
Total liabilities 491,976 256,332 6,276 110,785 865,369 477,385 220,416 5,277 95,326 798,404
Of which: customer accounts(4) 319,670 252,033 5,773 7,698 585,174 297,690 216,662 5,028 3,883 523,263
1 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025.
2 Other items 2025 include gains on sale of office space and include a
provision relating to the Korea equity-linked securities and the settlement of
a litigation matter. Other items 2024 include $100 million charge relating to
Korea equity-linked securities (ELS) portfolio, $172 million primarily
relating to recycling of FX translation losses from reserves into P&L on
the sale of Zimbabwe, $26 million loss on sale of Angola, $19 million loss on
Sierra Leone and $15 million loss on the Aviation business disposal. Refer to
the Restructuring, FFG (Fit for Growth), DVA and Other items table.
3 Loans held at FVTPL includes $50,443 million (2024: $51,441 million) of
reverse repurchase agreements.
4 Customer accounts includes $19,414 million (2024: $21,772 million) of
FVTPL and $35,599 million (2024: $37,002 million) of repurchase agreements.
5 Restructuring, FFG (Fit for Growth), DVA, Other items have been combined
and are now disclosed as one line item i.e. 'Restructuring and Other items'.
Operating income by client segment
2025 2024
Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures Central & other items $million Total Corporate & Investment Wealth & Retail Ventures Central & Total
$million $million Banking(1) Banking(1) $million other items(1) $million
$million $million $million
Underlying versus reported:
Underlying operating income 12,394 8,464 415 (379) 20,894 11,935 8,021 183 (443) 19,696
Restructuring (14) 1 - (11) (24) 69 23 - 11 103
DVA (31) - - - (31) (24) - - - (24)
Other items(2,3) - - - 103 103 - - - (232) (232)
Reported operating income 12,349 8,465 415 (287) 20,942 11,980 8,044 183 (664) 19,543
Additional segmental income:
Net interest income 1,397 5,126 115 (683) 5,955 2,090 5,175 100 (999) 6,366
Net fees and commission income 2,091 2,192 61 (95) 4,249 1,938 1,855 52 (111) 3,734
Net trading and other income 8,861 1,147 239 491 10,738 7,952 1,014 31 446 9,443
Reported operating income 12,349 8,465 415 (287) 20,942 11,980 8,044 183 (664) 19,543
1 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025.
2 Other items 2024 include $172 million primarily relating to recycling of
FX translation losses from reserves into P&L on the sale of Zimbabwe, $26
million loss on sale of Angola, $19 million loss on Sierra Leone and $15
million loss on the Aviation business disposal.
3 Other items 2025 include $113 million gains on sale of office space and
$10 million loss on business disposal.
Page 24
Reported operating income by geography
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million $million $million $million $million $million $million $million $million $million $million
2025 5,547 1,135 1,159 563 3,311 1,643 1,191 912 1,254 4,227 20,942
2024 4,797 1,085 1,327 577 2,573 1,323 837 278 1,288 5,458 19,543
Reported operating income by geography is based on the revenues attributed to
all foreign countries in total from which the Group derives revenues.
3. Net interest income
Accounting policy
Interest income for financial assets held at either fair value through other
comprehensive income or amortised cost, and interest expense on all financial
liabilities held at amortised cost is recognised in profit or loss using the
effective interest method.
The effective interest rate is the rate that discounts estimated future cash
payments or receipts through the expected life of the financial instrument or,
when appropriate, a shorter period, to the net carrying amount of the
financial asset or financial liability. When calculating the effective
interest rate, the Group estimates cash flows considering all contractual
terms of the financial instrument (for example prepayment options) but does
not consider future credit losses. The calculation includes all fees paid or
received between parties to the contract that are an integral part of the
effective interest rate, transaction costs and all other premiums or
discounts. For floating-rate financial instruments, periodic re-estimation of
cash flows that reflect the movements in the market rates of interest alters
the effective interest rate. Where the estimates of cash flows have been
revised, the carrying amount of the financial asset or liability is adjusted
to reflect the actual and revised cash flows, discounted at the instruments
original effective interest rate. The adjustment is recognised as interest
income or expense in the period in which the revision is made as long as the
change in estimates is not due to credit issues.
Interest income for financial assets that are either held at fair value
through other comprehensive income or amortised cost that have become
credit-impaired subsequent to initial recognition (stage 3) and have had
amounts written off, is recognised using the credit adjusted effective
interest rate. This rate is calculated in the same manner as the effective
interest rate except that expected credit losses are included in the expected
cash flows. Interest income is therefore recognised on the amortised cost of
the financial asset including expected credit losses. Should the credit risk
on a stage 3 financial asset improve such that the financial asset is no
longer considered credit-impaired, interest income recognition reverts to a
computation based on the rehabilitated gross carrying value of the financial
asset.
2025 2024
$million
$million
Balances at central banks 2,126 2,520
Loans and advances to banks 2,209 2,368
Loans and advances to customers 14,045 16,179
Debt securities 4,855 5,165
Other eligible bills 1,210 1,495
Accrued on impaired assets (discount unwind) 102 135
Interest income 24,547 27,862
Of which: financial instruments held at fair value through other comprehensive 3,745 3,773
income
Deposits by banks 664 806
Customer accounts 13,878 16,276
Debt securities in issue 3,432 3,610
Subordinated liabilities and other borrowed funds 552 744
Interest expense on IFRS 16 lease liabilities 66 60
Interest expense 18,592 21,496
Net interest income 5,955 6,366
Page 25
4. Net fees and commission
Accounting policy
The Group can act as trustee or in other Fiduciary capacities that result in
the holding or placing of assets on behalf of individuals, trusts, retirement
benefit plans and other institutions. The assets and income arising thereon
are excluded from these financial statements, as they are not assets and
income of the Group.
The Group applies the following practical expedients:
• information on amounts of transaction price allocated to unsatisfied (or
partially unsatisfied) performance obligations at the end of the reporting
period is not disclosed as almost all fee-earning contracts have an expected
duration of less than one year
• promised consideration is not adjusted for the effects of a significant
financing component as the period between the Group providing a service and
the customer paying for it is expected to be less than one year
• incremental costs of obtaining a fee-earning contract are recognised
upfront in 'Fees and commission expense' rather than amortised, if the
expected term of the contract is less than one year
The determination of the services performed for the customer, the transaction
price, and when the services are completed depends on the nature of the
product with the customer. The main considerations on income recognition by
product are as follows:
Transaction Banking
The Group recognises fee income associated with transactional trade and cash
management at the point in time the service is provided. The Group recognises
income associated with trade contingent risk exposures (such as letters of
credit and guarantees) over the period in which the service is provided.
Payment of fees is usually received at the same time the service is provided.
In some cases, letters of credit and guarantees issued by the Group have
annual upfront premiums, which are amortised on a straight-line basis to fee
income over the year.
Global Markets
The Group recognises fee income at the point in time the service is provided.
Fee income is recognised for a significant non-lending service when the
transaction has been completed and the terms of the contract with the customer
entitle the Group to the fee. This includes fees such as structuring and
advisory fees. Fees are usually received shortly after the service is
provided.
Syndication fees are recognised when the syndication is complete, defined as
achieving the final approved hold position. Fees are generally received before
completion of the syndication, or within 12 months of the transaction date.
Securities services include custody services, fund accounting and
administration, and broker clearing. Fees are recognised over the period the
custody or fund management services are provided, or as and when broker
services are requested.
Wealth Management
Upfront consideration on bancassurance agreements is amortised straight-line
over the contractual term. Commissions for bancassurance activities are
recorded as they are earned through sales of third-party insurance products to
customers. These commissions are received within a short time frame of the
commission being earned. Target-linked fees are accrued based on percentage of
the target achieved, provided it is assessed as highly probable that the
target will be met. Cash payment is received at a contractually specified date
after achievement of a target has been confirmed.
Upfront and trailing commissions for managed investment placements are
recorded as they are confirmed. Income from these activities is relatively
even throughout the period, and cash is usually received within a short time
frame after the commission is earned.
Retail Products
The Group recognises most income at the point in time the Group is entitled to
the fee, since most services are provided at the time of the customer's
request.
In most of our retail markets there are circumstances under which fees are
waived, income recognition is adjusted to reflect customer's intent to pay the
annual fee. The Group defers the fair value of reward points on its credit
card reward programmes, and recognises income and costs associated with
fulfilling the reward at the time of redemption.
2025 2024
$million $million
Fees and commissions income 5,349 4,623
Of which:
Financial instruments that are not fair valued through profit or loss 1,566 1,436
Trust and other fiduciary activities 793 632
Fees and commissions expense (1,100) (889)
Of which:
Financial instruments that are not fair valued through profit or loss (376) (245)
Trust and other fiduciary activities (68) (50)
Net fees and commission 4,249 3,734
Page 26
2025 2024
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Other Total Corporate & Investment Banking Wealth & Retail Ventures(1) Central & Other Total
$million $million $million Items $million $million $million Banking(1) $million Items(1) $million
$million $million
Transaction Services 1,591 - - - 1,591 1,456 - - - 1,456
Payments & Liquidity 642 - - - 642 634 - - - 634
Securities & Prime Services 346 - - - 346 254 - - - 254
Trade & Working Capital 603 - - - 603 568 - - - 568
Global Banking 1,091 - - - 1,091 937 - - - 937
Lending & Financial Solutions 673 - - - 673 633 - - - 633
Capital Markets & Advisory 418 - - - 418 304 - - - 304
Global Markets 51 - - - 51 36 - - - 36
Macro Trading 1 - - - 1 (3) - - - (3)
Credit Trading 50 - - - 50 40 - - - 40
Valuation & Other Adj - - - - - (1) - - - (1)
Wealth solutions - 2,006 - - 2,006 - 1,598 - - 1,598
Investment Products - 1,252 - - 1,252 - 929 - - 929
Bancassurance - 754 - - 754 - 669 - - 669
Deposits & Mortgages - 211 - - 211 - 222 - - 222
CCPL & Other Unsecured Lending - 282 - - 282 - 321 - - 321
Ventures - - 89 - 89 - - 78 - 78
Digital Banks - - 54 - 54 - - 43 - 43
SCV - - 35 - 35 - - 35 - 35
Treasury & Other - 28 - - 28 - 27 - (52) (25)
Fees and commission income 2,733 2,527 89 - 5,349 2,429 2,168 78 (52) 4,623
Fees and commission expense (642) (335) (28) (95) (1,100) (491) (313) (26) (59) (889)
Net fees and commission 2,091 2,192 61 (95) 4,249 1,938 1,855 52 (111) 3,734
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.
Upfront bancassurance consideration amounts are amortised on a straight-line
basis over the contractual period to which the consideration relates. Deferred
income on the balance sheet in respect of these activities is $363 million (31
December 2024: $419 million), which will be earned evenly over the remaining
life of the contract until June 2032. For the twelve months ended 31 December
2025, $56 million of fee income was released from deferred income (31 December
2024: $56 million).
5. Net trading income
Accounting policy
Gains and losses arising from changes in the fair value of financial
instruments held at fair value through profit or loss are recorded in net
trading income in the period in which they arise. This includes contractual
interest receivable or payable.
When the initial fair value of a financial instrument held at fair value
through profit or loss relies on unobservable inputs, the difference between
the initial valuation and the transaction price is amortised to net trading
income as the inputs become observable or over the life of the instrument,
whichever is shorter. Any unamortised 'day one' gain is released to net
trading income if the transaction is terminated.
Income is recognised from the sale and purchase of trading positions, margins
on market making and customer business and fair value changes.
2025 2024
$million $million
Net trading income 10,294 9,615
Significant items within net trading income include:
Gains on instruments held for trading(1) 8,267 7,418
Gains on financial assets mandatorily at fair value through profit or loss 5,468 5,392
(Losses)/gains on financial assets designated at fair value through profit or (10) 8
loss
Losses on financial liabilities designated at fair value through profit or (3,476) (3,252)
loss
1 Includes $87 million gain (31 December 2024: $583 million gain) from the
translation of foreign currency monetary assets and liabilities.
Page 27
6. Other operating income
2025 2024
$million $million
Other operating income/(loss) includes:
Rental income from operating lease assets 33 40
Net loss on disposal of fair value through other comprehensive income debt (10) (237)
instruments
Net loss on amortised cost financial assets (43) (27)
Net gain/(loss) on sale of businesses 242(1) (210)(2)
Dividend income 10 5
Other(3) 212 257
Other operating income/(loss) 444 (172)
1 Includes $241 million gain from disposal of businesses ($238 million
gain from Standard Chartered Research and Technology India Private Limited;
and $13 million gain from WRB business in SCB Tanzania, partly offset by $5
million loss from Standard Chartered Bank Gambia Limited and $5 million loss
from Standard Chartered Bank Cameroon S.A.) of which $20 million relates to
realisation of translation adjustment loss. Total cash consideration received
from the disposal was $48 million ($13 million: SCB Tanzania, $6 million:
Standard Chartered Bank Gambia Limited, $29 million: Standard Chartered Bank
Cameroon S.A.
2 2024 balance mainly includes loss on disposal of Africa subsidiaries $217
million ($172 million: SCB Zimbabwe Limited, $26 million: SCB Angola S.A. and
$19 million: SCB Sierra Leone Limited) of which $246 million relates to
realisation of translation adjustment loss, partly offset by gain of $17
million from disposal of Venture entities (Shoal limited and Autumn life Pte.
Ltd). Total cash consideration received was $74 million ($24 million: SCB
Zimbabwe Limited, $10 million: SCB Angola S.A., $17 million: SCB Sierra Leone
Limited, $17 million: Shoal Limited and $6 million: Autumn life Pte. Ltd).
3 2025 balance includes $133 million gain on disposal of property, plant and
equipment, IAS 29 adjustment Ghana hyperinflationary impact ($8 million) and
immaterial balances across other geographies. 2024 balance includes IAS 29
adjustment Ghana hyperinflationary impact ($139 million), Research and
development expenditure credit ($32 million), Rebates/incentives received from
VISA card ($25 million), Gain on disposal of property plant and equipment ($23
million), Mark-to-market gains from deferred compensation income ($17
million), and immaterial balances across other geographies.
On 26 June 2025, the Group disposed of its entire interest in Standard
Chartered Research and Technology India Private Limited (SCRTIPL), a
subsidiary, as part of a combined share swap and primary investment
transaction (the Solv India transaction or the transaction). The transaction
has resulted in the Group recognising Jumbotail Technologies Private Limited
as an associate.
The carrying amount of the net assets of SCRTIPL at the date of the Solv India
transaction was $16 million. The Group recognised a gain on the transaction of
$238 million. The consideration received in the combined share swap was $344
million, including a primary cash investment of $80 million. Disposal costs
were approximately $9 million.
The gain on disposal arose because the carrying value of the subsidiary's net
assets was exceeded by the consideration received. No impairment of OCI
balances was required. The disposal has resulted in the recycling of $3
million of Currency Translation Adjustments to profit and loss.
The Group elected to apply the 12-month measurement exemption to finalise the
purchase price allocation. The allocation is incomplete at 31 December 2025 as
additional analysis is required to finalise the nature and value of intangible
assets.
7. Operating expenses
2025 2024
$million $million
Staff costs:
Wages and salaries 6,962 6,567
Social security costs 286 246
Other pension costs (Note 30) 518 451
Share-based payment costs (Note 31) 399 334
Other staff costs 944 912
9,109 8,510
Premises and equipment expenses: 434 401
General administrative expenses:
UK bank levy 52 90
Other general administrative expenses 2,539 2,375
2,591 2,465
Depreciation and amortisation:
Property, plant and equipment:
Premises 315 299
Equipment 166 128
Intangibles:
Software 687 695
Acquired on business combinations 2 4
1,170 1,126
Total operating expenses 13,304 12,502
Page 28
Other staff costs include redundancy expenses of $193 million (31 December
2024: $186 million). Further costs in this category include training, travel
costs and other staff-related costs. The Group has recognised $15 million of
accelerated share based payment expense relating to the amendment of vesting
schedules as allowed for by the PRA Policy Statement on Remuneration Reform
(dated 15 October 2025).
Details of directors' pay, benefits, pensions and interests in shares are
disclosed in the Directors' remuneration report.
Transactions with directors, officers and other related parties are disclosed
in Note 36.
Operating expenses include research expenditures of $1,210 million (31
December 2024: $1,187 million), which was recognised as an expense in the
year. In addition to this, there was a provision relating to the Korea
equity-linked securities and the settlement of a litigation matter.
The UK bank levy is applied to chargeable equity and liabilities on the
balance sheet of UK operations. Key exclusions from chargeable equity and
liabilities include Tier 1 capital, insured or guaranteed retail deposits,
repos secured on certain sovereign debt and liabilities subject to netting.
The rates are 0.10 per cent for short-term liabilities and 0.05 per cent for
long-term liabilities.
8. Credit impairment
Accounting policy
Significant accounting estimates and judgements
The Group's expected credit loss (ECL) calculations are outputs of complex
models with a number of underlying assumptions. The significant judgements in
determining expected credit loss include:
• The Group's criteria for assessing if there has been a significant
increase in credit risk;
• Development of expected credit loss models, including the choice of
inputs relating to macroeconomic variables;
• Determining estimates of forward looking macroeconomic forecasts;
• Evaluation of management overlays and post-model adjustments;
• Determination of recovery scenarios and probability weightings for Stage
3 individually assessed provisions
The calculation of credit impairment provisions also involves expert credit
judgement to be applied by the credit risk management team based upon
counterparty information they receive from various sources including
relationship managers and on external market information. Details on the
approach for determining expected credit loss can be found in the credit risk
section, under IFRS 9 Methodology.
Estimates of forecasts of key macroeconomic variables underlying the expected
credit loss calculation can be found within the Risk review, Key assumptions
and judgements in determining expected credit loss.
Expected credit losses
An ECL represents the present value of expected cash shortfalls over the
residual term of a financial asset, undrawn commitment or financial guarantee.
A cash shortfall is the difference between the cash flows that are due in
accordance with the contractual terms of the instrument and the cash flows
that the Group expects to receive over the contractual life of the instrument.
Measurement
ECL are computed as unbiased, probability-weighted amounts which are
determined by evaluating a range of reasonably possible outcomes, the time
value of money, and considering all reasonable and supportable information
including that which is forward-looking.
For material portfolios, the estimate of expected cash shortfalls is
determined by multiplying the probability of default (PD) with the loss given
default (LGD) with the expected exposure at the time of default (EAD). There
may be multiple default events over the lifetime of an instrument. Further
details on the components of PD, LGD and EAD are disclosed in the Credit risk
section. For less material loan portfolios, the Group has adopted less
sophisticated approaches based on historical roll rates or loss rates.
Forward-looking economic assumptions are incorporated into the PD, LGD and EAD
where relevant and where they influence credit risk, such as GDP growth rates,
interest rates, house price indices and commodity prices among others. These
assumptions are incorporated using the Group's most likely forecast for a
range of macroeconomic assumptions. These forecasts are determined using all
reasonable and supportable information, which includes both internally
developed forecasts and those available externally, and are consistent with
those used for budgeting, forecasting and capital planning.
To account for the potential non-linearity in credit losses, multiple
forward-looking scenarios are incorporated into the range of reasonably
possible outcomes for all material portfolios. For example, where there is a
greater risk of downside credit losses than upside gains, multiple
forward-looking economic scenarios are incorporated into the range of
reasonably possible outcomes, both in respect of determining the PD (and where
relevant, the LGD and EAD) and in determining the overall ECL amounts. These
scenarios are determined using a Monte Carlo approach centred around the
Group's most likely forecast of macroeconomic assumptions.
Page 29
The period over which cash shortfalls are determined is generally limited to
the maximum contractual period for which the Group is exposed to credit risk.
However, for certain revolving credit facilities, which include credit cards
or overdrafts, the Group's exposure to credit risk is not limited to the
contractual period. For these instruments, the Group estimates an appropriate
life based on the period that the Group is exposed to credit risk, which
includes the effect of credit risk management actions such as the withdrawal
of undrawn facilities.
For credit-impaired financial instruments, the estimate of cash shortfalls may
require the use of expert credit judgement.
The estimate of expected cash shortfalls on a collateralised financial
instrument reflects the amount and timing of cash flows that are expected from
foreclosure on the collateral less the costs of obtaining and selling the
collateral, regardless of whether foreclosure is deemed probable.
Cash flows from unfunded credit enhancements held are included within the
measurement of expected credit losses if they are part of, or integral to, the
contractual terms of the instrument (this includes financial guarantees,
unfunded risk participations and other non-derivative credit insurance).
Although non-integral credit enhancements do not impact the measurement of
expected credit losses, a reimbursement asset is recognised to the extent of
the ECL recorded if this is virtually certain to be received.
Cash shortfalls are discounted using the effective interest rate (or
credit-adjusted effective interest rate for purchased or originated
credit-impaired instruments (POCI)) on the financial instrument as calculated
at initial recognition or if the instrument has a variable interest rate, the
current effective interest rate determined under the contract.
Instruments Location of expected credit loss provisions
Financial assets held at amortised cost Loss provisions: netted against gross carrying value(1)
Financial assets held FVOCI - Debt instruments Other comprehensive income (FVOCI expected credit loss reserve)(2)
Loan commitments Provisions for liabilities and charges(3)
Financial guarantees Provisions for liabilities and charges(3)
1 Purchased or originated credit-impaired assets do not attract an
expected credit loss provision on initial recognition. An expected credit loss
provision will be recognised only if there is an increase in expected credit
losses from that considered at initial recognition.
2 Debt and treasury securities classified as fair value through other
comprehensive income (FVOCI) are held at fair value on the face of the balance
sheet. The expected credit loss attributed to these instruments is held as a
separate reserve within other comprehensive income (OCI) and is recycled to
the profit and loss account along with any fair value measurement gains or
losses held within FVOCI when the applicable instruments are derecognised.
3 Expected credit loss on loan commitments and financial guarantees is
recognised as a liability provision. Where a financial instrument includes
both a loan (i.e. financial asset component) and an undrawn commitment (i.e.
loan commitment component), and it is not possible to separately identify the
expected credit loss on these components, expected credit loss amounts on the
loan commitment are recognised together with expected credit loss amounts on
the financial asset. To the extent the combined expected credit loss exceeds
the gross carrying amount of the financial asset, the expected credit loss is
recognised as a liability provision.
Recognition
12 months expected credit losses (Stage 1)
Expected credit losses are recognised at the time of initial recognition of a
financial instrument and represent the lifetime cash shortfalls arising from
possible default events up to 12 months into the future from the balance sheet
date. Expected credit losses continue to be determined on this basis until
there is either a significant increase in the credit risk of an instrument or
the instrument becomes credit-impaired. If an instrument is no longer
considered to exhibit a significant increase in credit risk, expected credit
losses will revert to being determined on a 12-month basis.
Significant increase in credit risk (Stage 2)
Significant increase in credit risk is assessed by comparing the risk of
default of an exposure at the reporting date to the risk of default at
origination (after taking into account the passage of time). Significant does
not mean statistically significant nor is it assessed in the context of
changes in expected credit loss. Whether a change in the risk of default is
significant or not is assessed using a number of quantitative and qualitative
factors, the weight of which depends on the type of product and counterparty.
Financial assets that are 30 or more days past due and not credit-impaired
will always be considered to have experienced a significant increase in credit
risk. For less material portfolios where a loss rate or roll rate approach is
applied to compute expected credit loss, significant increase in credit risk
is primarily based on 30 days past due.
Quantitative factors include an assessment of whether there has been
significant increase in the forward-looking probability of default (PD) since
origination. A forward-looking PD is one that is adjusted for future economic
conditions to the extent these are correlated to changes in credit risk. We
compare the residual lifetime PD at the balance sheet date to the residual
lifetime PD that was expected at the time of origination for the same point in
the term structure and determine whether both the absolute and relative change
between the two exceeds predetermined thresholds. To the extent that the
differences between the measures of default outlined exceed the defined
thresholds, the instrument is considered to have experienced a significant
increase in credit risk.
Qualitative factors assessed include those linked to current credit risk
management processes, such as lending placed on non-purely precautionary early
alert (and subject to closer monitoring).
A non-purely precautionary early alert account is one which exhibits material
credit concerns which may result in a default by the client if left
unaddressed requiring closer monitoring, supervision, or attention by
management. Indicators could include a rapid erosion of position within the
industry, concerns over management's ability to manage operations,
weak/deteriorating operating results, liquidity strain and overdue balances
among other factors.
Page 30
Credit-impaired (or defaulted) exposures (Stage 3)
Financial assets that are credit-impaired (or in default) represent those that
are at least 90 days past due in respect of principal and/or interest.
Financial assets are also considered to be credit-impaired where the obligors
are unlikely to pay on the occurrence of one or more observable events that
have a detrimental impact on the estimated future cash flows of the financial
asset. It may not be possible to identify a single discrete event but instead
the combined effect of several events may cause financial assets to become
credit-impaired.
Evidence that a financial asset is credit-impaired includes observable data
about the following events:
• Significant financial difficulty of the issuer or borrower;
• Breach of contract such as default or a past due event;
• For economic or contractual reasons relating to the borrower's financial
difficulty, the lenders of the borrower have granted the borrower
concession(s) that lenders would not otherwise consider. This would include
forbearance actions;
• Pending or actual bankruptcy or other financial reorganisation to avoid
or delay discharge of the borrower's obligation(s);
• The disappearance of an active market for the applicable financial asset
due to financial difficulties of the borrower;
• Purchase or origination of a financial asset at a deep discount that
reflects incurred credit losses.
Lending commitments to a credit-impaired obligor that have not yet been drawn
down are included to the extent that the commitment cannot be withdrawn. Loss
provisions against credit-impaired financial assets are determined based on an
assessment of the present value of expected cash shortfalls (discounted at the
instrument's original effective interest rate) under a range of scenarios,
including the realisation of any collateral held where appropriate. The
Group's definition of default is aligned with the regulatory definition of
default as set out in the UK's onshored capital requirements regulations (Art
178).
Expert credit judgement
For Corporate & Investment banking and Private banking, borrowers are
graded by credit risk management on a credit grading (CG) scale from CG1 to
CG14. Once a borrower starts to exhibit credit deterioration, it will move
along the credit grading scale in the performing book. When a borrower is
classified as CG12 (which is the lowest performing book and credit grade and
is a qualitative trigger for significant increase in credit risk it will
continue to be primarily managed by relationship managers in the CIB unit with
support from Stressed Asset Group (SAG) for certain accounts. SAG is the
Group's specialist recovery unit, which is independent of the Client
Coverage/Relationship Managers.
Borrowers graded CG12 exhibit well-defined weaknesses in areas such as
management and/or performance but there is no current expectation of a loss of
principal or interest at this stage and there is no indication of unlikeliness
to repay (it is still a performing asset). Where the impairment assessment
indicates that there will be a loss of principal on a loan in the likely
scenario, the borrower is graded a CG14 while borrowers of other
credit-impaired loans are graded CG13. Instruments graded CG13 or CG14 are
regarded as stage 3.
Credit-impaired accounts are managed by SAG. Where a portion of exposure is
considered not recoverable, a stage 3 credit impairment provision is raised.
This stage 3 provision is the difference between the loan-carrying amount and
the probability-weighted present value of estimated future cash flows,
reflecting a range of scenarios (typically the 'upside', 'downside' and
'likely' recovery outcomes). Where the exposure is secured by collateral, the
values used will incorporate the impact of forward-looking economic
information on the value recoverable collateral and time to realise the same.
The individual circumstances of each client are considered when SAG estimates
future cashflows and the timing of future recoveries which involves
significant judgement. All available sources, such as cash flow arising from
operations, selling assets or subsidiaries, realising collateral or payments
under guarantees, are considered. In any decision relating to the raising of
provisions, the Group attempts to balance economic conditions, local knowledge
and experience, and the results of independent asset reviews. The individual
impairment provisions (viz. those not directly from a model) are approved by
Stressed Assets Risk (SAR) who are in the Second Line of Defence.
For financial assets which are not individually significant, such as the
Retail Banking portfolio or small business loans, which comprise a large
number of homogeneous loans that share similar characteristics, statistical
estimates and techniques are used, as well as credit scoring analysis.
Wealth, Retail and Business Banking clients are considered credit-impaired
where they are more 90 days past due, or if the borrower files for bankruptcy
or other forbearance programme, the borrower is deceased or the business is
closed in the case of a small business, or if the borrower surrenders the
collateral, or there is an identified fraud on the account. Additionally, if
the account is unsecured and the borrower has other credit accounts with the
Group that are considered credit-impaired, the account may also be
credit-impaired.
Techniques used to compute impairment amounts use models which analyse
historical repayment and default rates over a time horizon. Where various
models are used, judgement is required to analyse the available information
provided and select the appropriate model or combination of models to use.
The core components in determining credit-impaired expected credit loss
provisions are the value of gross charge-off and recoveries. Gross charge-off
and/or loss provisions are recognised when it is established that the account
is unlikely to pay through the normal process. Recovery of unsecured debt post
credit impairment is recognised based on actual cash collected, either
directly from clients or through the sale of defaulted loans to third-party
institutions. Release of credit impairment provisions for secured loans is
recognised if the loan outstanding is paid in full (release of full
provision), or the provision is higher than the loan outstanding (release of
the excess provision).
Page 31
Expert credit judgement is also applied to determine whether any post-model
adjustments are required for credit risk elements which are not captured by
the models.
Modified financial instruments
Where the original contractual terms of a financial asset have been modified
for credit reasons and the instrument has not been derecognised (an instrument
is derecognised when a modification results in a change in cash flows that the
Group would consider substantial), the resulting modification loss is
recognised within credit impairment in the income statement with a
corresponding decrease in the gross carrying value of the asset. If the
modification involved a concession that the bank would not otherwise consider,
the instrument is considered to be credit-impaired and is considered forborne.
Expected credit loss for modified financial assets that have not been
derecognised and are not considered to be credit-impaired will be recognised
on a 12-month basis, or a lifetime basis, if there is a significant increase
in credit risk. These assets are assessed (by comparison to the origination
date) to determine whether there has been a significant increase in credit
risk subsequent to the modification. Although loans may be modified for
non-credit reasons, a significant increase in credit risk may occur. In
addition to the recognition of modification gains and losses, the revised
carrying value of modified financial assets will impact the calculation of
expected credit losses, with any increase or decrease in expected credit loss
recognised within impairment.
Forborne loans
Forborne loans are those loans that have been modified in response to a
customer's financial difficulties. Forbearance strategies assist clients who
are temporarily in financial distress and are unable to meet their original
contractual repayment terms. Forbearance can be initiated by the client, the
Group or a third-party including government sponsored programmes or a
conglomerate of credit institutions. Forbearance may include debt
restructuring such as new repayment schedules, payment deferrals, tenor
extensions, interest only payments, lower interest rates, forgiveness of
principal, interest or fees, or relaxation of loan covenants.
Forborne loans that have been modified (and not derecognised) on terms that
are not consistent with those readily available in the market and/or where we
have granted a concession compared to the original terms of the loans are
considered credit-impaired if there is a detrimental impact on cash flows. The
modification loss (see Classification and measurement - Modifications) is
recognised in the profit or loss within credit impairment and the gross
carrying value of the loan reduced by the same amount. The modified loan is
disclosed as 'Loans subject to forbearance - credit-impaired'.
Loans that have been subject to a forbearance modification, but which are not
considered credit-impaired (not classified as CG13 or CG14), are disclosed as
'Forborne - not credit-impaired'. This may include amendments to covenants
within the contractual terms.
Write-offs of credit-impaired instruments and reversal of impairment
To the extent a financial debt instrument is considered irrecoverable, the
applicable portion of the gross carrying value is written off against the
related loan provision. Such loans are written off after all the necessary
procedures have been completed, it is decided that there is no realistic
probability of recovery and the amount of the loss has been determined.
Subsequent recoveries of amounts previously written off decrease the amount of
the provision for credit impairment in the income statement.
Loss provisions on purchased or originated credit-impaired instruments (POCI)
The Group measures expected credit loss on a lifetime basis for POCI
instruments throughout the life of the instrument. However, expected credit
loss is not recognised in a separate loss provision on initial recognition for
POCI instruments as the lifetime expected credit loss is inherent within the
gross carrying amount of the instruments. The Group recognises the change in
lifetime expected credit losses arising subsequent to initial recognition in
the income statement and the cumulative change as a loss provision. Where
lifetime expected credit losses on POCI instruments are less than those at
initial recognition, then the favourable differences are recognised as
impairment gains in the income statement (and as impairment loss where the
expected credit losses are greater).
Improvement in credit risk/curing
For financial assets that are credit-impaired (stage 3), a transfer to stage 2
or stage 1 is only permitted where the instrument is no longer considered to
be credit-impaired. An instrument will no longer be considered credit-impaired
when there is no shortfall of cash flows compared to the original contractual
terms.
For financial assets within stage 2, these can only be transferred to stage 1
when they are no longer considered to have experienced a significant increase
in credit risk.
Where a significant increase in credit risk was determined using quantitative
measures, the instruments will automatically transfer back to stage 1 when the
original PD based transfer criteria are no longer met. Where instruments were
transferred to stage 2 due to an assessment of qualitative factors, the issues
that led to the reclassification must be cured before the instruments can be
reclassified to stage 1. This includes instances where management actions led
to instruments being classified as stage 2, requiring that action to be
resolved before loans are reclassified to stage 1.
A forborne loan can only be removed from being disclosed as forborne if the
loan is performing (stage 1 or 2) and a further two-year probation period is
met.
In order for a forborne loan to become performing, the following criteria have
to be satisfied:
• At least a year has passed with no default based upon the forborne
contract terms
• The customer is likely to repay its obligations in full without
realising security
• The customer has no accumulated impairment against amount outstanding
(except for ECL)
Page 32
Subsequent to the criteria above, a further two-year probation period has to
be fulfilled, whereby regular payments are made by the customer and none of
the exposures to the customer are more than 30 days past due.
2025 2024
$million $million
Net credit impairment on loans and advances to banks and customers 652 590
Net credit impairment on debt securities(1) 37 (58)
Net credit impairment relating to financial guarantees and loan commitments (24) 18
Net credit impairment relating to other financial assets 7 (3)
Credit impairment(1) 672 547
1 Includes impairment charge of $5 million (2024: $14 million release) on
originated credit-impaired debt securities.
9. Goodwill, property, plant and equipment and other impairment
Accounting policy
Refer to the below referenced notes for the relevant accounting policy.
2025 2024
$million $million
Impairment of property, plant and equipment (Note 18) - 11
Impairment of other intangible assets (Note 17) 45 561
Other 20 16
Goodwill, property, plant and equipment and other impairment 65 588
10. Taxation
Accounting policy
Income tax payable on profits is based on the applicable tax law in each
jurisdiction and is recognised as an expense in the period in which profits
arise.
Deferred tax is provided on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated
financial statements. Deferred tax is determined using tax rates (and laws)
that have been enacted or substantively enacted as at the balance sheet date,
and that are expected to apply when the related deferred tax asset is realised
or the deferred income tax liability is settled.
Deferred tax assets are recognised where it is probable that future taxable
profit will be available against which the temporary differences can be
utilised. Where permitted, deferred tax assets and liabilities are offset on
an entity basis and not by component of deferred taxation.
Current and deferred tax relating to items which are charged or credited
directly to equity, is credited or charged directly to equity and is
subsequently recognised in the income statement together with the current or
deferred gain or loss.
Other accounting estimates and judgements
• Determining the Group's tax charge for the year involves estimation and
judgement, which includes an interpretation of local tax laws and an
assessment of whether the tax authorities will accept the position taken.
These judgements take account of external advice where appropriate, and the
Group's view on settling with the relevant tax authorities
• The Group provides for current tax liabilities at the best estimate of
the amount that is expected to be paid to the tax authorities where an outflow
is probable. In making its estimates the Group assumes that the tax
authorities will examine all the amounts reported to them and have full
knowledge of all relevant information
• The recoverability of the Group's deferred tax assets is based on
management's judgement of the availability of future taxable profits against
which the deferred tax assets will be utilised. In preparing management
forecasts the effect of applicable laws and regulations relevant to the
utilisation of future taxable profits have been considered.
Page 33
The following table provides analysis of taxation charge in the year:
2025 2024
$million $million
The charge for taxation based upon the profit for the year comprises:
Current tax:
United Kingdom corporation tax at 25 per cent (2024: 25 per cent):
Current tax charge on income for the year - 16
Adjustments in respect of prior years (including double tax relief) 7 1
Foreign tax:
Current tax charge on income for the year 1,873 1,752
Adjustments in respect of prior years (45) (8)
1,835 1,761
Deferred tax:
Origination/reversal of temporary differences 112 198
Adjustments in respect of prior years (81) 13
31 211
Tax on profits on ordinary activities 1,866 1,972
Effective tax rate 26.8% 32.8%
The tax charge for the year of $1,866 million (31 December 2024: $1,972
million) on a profit before tax of $6,963 million (31 December 2024: $6,014
million) reflects the impact of non-creditable withholding taxes and other
taxes, non-deductible expenses and tax losses for which no deferred tax assets
are recognised. These are partly offset by countries with tax rates lower than
the UK, the most significant of which are Hong Kong and Singapore, and
tax-exempt income.
Foreign tax includes current tax of $359 million (31 December 2024: $272
million) on the profits assessable in Hong Kong. Deferred tax includes
origination or reversal of temporary differences of $17 million (31 December
2024: $8 million) provided at a rate of 16.5 per cent (31 December 2024: 16.5
per cent) on the profits assessable in Hong Kong.
The Group falls within the Pillar Two global minimum tax rules which apply in
the UK from 1 January 2024. The IAS 12 exception to recognise and disclose
information about deferred tax assets and liabilities related to Pillar Two
income taxes has been applied. The current tax charge for the period ended 31
December 2025 includes $14m in respect of current period Pillar Two income
taxes (31 December 2024: $17m) and $10m in respect of the prior period (31
December 2024: $nil).
Tax rate: The tax charge for the year is higher than the charge at the rate of
corporation tax in the UK, 25 per cent. The differences are explained below:
2025 2024
$million % $million %
Profit on ordinary activities before tax 6,963 6,014
Tax at 25 per cent (2024: 25 per cent) 1,741 25.0 1,504 25.0
Lower tax rates on overseas earnings (482) (6.9) (425) (7.1)
Higher tax rates on overseas earnings 219 3.1 269 4.5
Tax at domestic rates applicable where profits earned 1,478 21.2 1,348 22.4
Non-creditable withholding taxes and other taxes 319 4.6 260 4.3
Tax exempt income (160) (2.3) (133) (2.2)
Share of associates and joint ventures (10) (0.2) (6) (0.1)
Non-deductible expenses 256 3.7 243 4.0
Bank levy 13 0.2 23 0.4
Non-taxable losses on investments(1) (25) (0.4) 35 0.6
Payments on financial instruments in reserves (80) (1.2) (72) (1.2)
Deferred tax not recognised 220 3.2 298 5.0
Deferred tax rate changes 3 0.1 (3) -
Adjustments to tax charge in respect of prior years (119) (1.7) 6 0.1
Other items (29) (0.4) (27) (0.5)
Tax on profit on ordinary activities 1,866 26.8 1,972 32.8
1 2025 Includes tax impact of $3m (2024:$55m) relating to loss on sale of
subsidiaries in Africa.
Factors affecting the tax charge in future years: the Group's tax charge, and
effective tax rate in future years could be affected by several factors
including acquisitions, disposals and restructuring of our businesses, the mix
of profits across jurisdictions with different statutory tax rates, changes in
tax legislation and tax rates and resolution of uncertain tax positions.
The evaluation of uncertain tax positions involves an interpretation of local
tax laws which could be subject to challenge by a tax authority, and an
assessment of whether the tax authorities will accept the position taken. The
Group does not currently consider that assumptions or judgements made in
assessing tax liabilities have a significant risk of resulting in a material
adjustment within the next financial year.
Page 34
Tax recognised in other comprehensive income 2025 2024
Current tax Deferred tax Total Current tax Deferred tax Total
$million $million $million $million $million $million
Items that will not be reclassified to income statement (11) (2) (13) (16) 113 97
Own credit adjustment (1) 20 19 1 49 50
Equity instruments at fair value through other comprehensive income (9) (26) (35) (17) 76 59
Retirement benefit obligations (1) 4 3 - (12) (12)
Items that may be reclassed subsequently to income statement (3) (62) (65) (7) (30) (37)
Debt instruments at fair value through other comprehensive income (3) (5) (8) (7) (44) (51)
Cash flow hedges - (57) (57) - 14 14
Total tax credit/(charge) recognised in equity (14) (64) (78) (23) 83 60
Current tax: The following are the movements in current tax during the year:
Current tax comprises: 2025 2024
$million
$million
Current tax assets 663 484
Current tax liabilities (726) (811)
Net current tax opening balance (63) (327)
Movements in income statement (1,835) (1,761)
Movements in other comprehensive income (14) (23)
Taxes paid 1,804 2,045
Other movements (27) 3
Net current tax balance as at 31 December (135) (63)
Current tax assets 574 663
Current tax liabilities (709) (726)
Total (135) (63)
Deferred tax: The following are the major deferred tax liabilities and assets
recognised by the Group and movements thereon during the year:
Deferred tax comprises: At 1 January Exchange & other adjustments (Charge)/credit (Charge)/credit At 31 December
to profit
to equity
2025
2025 $million
$million $million $million
$million
Accelerated tax depreciation (380) (16) 4 - (392)
Impairment provisions on loans and advances 190 (6) (7) - 177
Tax losses carried forward 74 15 (34) - 55
Equity Instruments at Fair value through other comprehensive income (62) (13) (2) (26) (103)
Debt Instruments at Fair value through other comprehensive income (30) 7 1 (5) (27)
Cash flow hedges (9) (4) - (57) (70)
Own credit adjustment 4 - - 20 24
Retirement benefit obligations (7) 1 11 4 9
Share-based payments 54 2 15 - 71
Other temporary differences 13 1 (19) 2 (3)
Net deferred tax (153) (13) (31) (62) (259)
Page 35
Deferred tax comprises: At 1 January Exchange & other adjustments (Charge)/credit (Charge)/credit At 31 December
to profit
to equity
2024
2024 $million
$million $million $million
$million
Accelerated tax depreciation (424) 7 40 (3) (380)
Impairment provisions on loans and advances 286 (2) (94) - 190
Tax losses carried forward 97 (24) 1 - 74
Equity Instruments at Fair value through other comprehensive income (144) 6 - 76 (62)
Debt Instruments at Fair value through other comprehensive income 27 3 (16) (44) (30)
Cash flow hedges (25) 2 - 14 (9)
Own credit adjustment (71) 26 - 49 4
Retirement benefit obligations 4 (5) 6 (12) (7)
Share-based payments 43 (1) 12 - 54
Other temporary differences 139 (1) (160) 35 13
Net deferred tax (68) 11 (211) 115 (153)
Deferred tax comprises assets and liabilities as follows:
Deferred tax comprises: 31.12.25 31.12.24
Total Asset Liability Total Asset Liability
$million $million $million $million $million $million
Accelerated tax depreciation (392) 44 (436) (380) 19 (399)
Impairment provisions on loans and advances 177 207 (30) 190 139 51
Tax losses carried forward 55 14 41 74 51 23
Equity Instruments at Fair value through other comprehensive income (103) (3) (100) (62) (12) (50)
Debt Instruments at Fair value through other comprehensive income (27) (7) (20) (30) (14) (16)
Cash flow hedges (70) (11) (59) (9) - (9)
Own credit adjustment 24 1 23 4 4 -
Retirement benefit obligations 9 33 (24) (7) 16 (23)
Share-based payments 71 21 50 54 12 42
Other temporary differences (3) 194 (197) 13 199 (186)
(259) 493 (752) (153) 414 (567)
The recoverability of the Group's deferred tax assets is based on management's
judgement of the availability of future taxable profits against which the
deferred tax assets will be utilised. The Group's total deferred tax assets
include $55 million relating to tax losses carried forward, of which $41
million arises in legal entities with offsetting deferred tax liabilities. The
remaining deferred tax assets on losses of $14 million are forecast to be
recovered before expiry and within five years.
Unrecognised deferred tax
Net Gross Net Gross
2025 2025 2024 2024
$million $million $million $million
No account has been taken of the following potential deferred
tax assets/(liabilities):
Withholding tax on unremitted earnings from overseas subsidiaries and (610) (6,527) (611) (6,827)
associates
Tax losses 2,562 10,644 2,494 10,414
Held over gains on incorporation of overseas branches (387) (1,468) (360) (1,366)
Other temporary differences 327 1,273 356 1,363
Page 36
11. Dividends
The Board considers a number of factors prior to dividend declaration which
includes the rate of recovery in the Group's financial performance, the
macroeconomic environment, and opportunities to further invest in our business
and grow profitably in our markets.
Dividends on equity instruments are recognized as a liability once they have
been declared and no longer at the discretion of the directors, and in certain
situations, approved by shareholders.
Ordinary equity shares
2025 2024
Cents per share $million Cents per share $million
2024/2023 final dividend declared and paid during the year 28 670 21 551
2025/2024 interim dividend declared and paid during the year 12 284 9 229
Dividends on ordinary equity shares are recorded in the period in which they
are declared and, in respect of the final dividend, have been approved by the
shareholders. Accordingly, the final ordinary equity share dividends set out
above relate to the respective prior years.
2025 recommended final ordinary equity share dividend
The 2025 final ordinary equity share dividend recommended by the Board is 49
cents per share. The financial statements for the year ended 31 December 2025
do not reflect this dividend as this will be accounted for in shareholders'
equity as an appropriation of retained profits in the year ending 31
December 2026.
The dividend will be paid in either pounds sterling, Hong Kong dollars or US
dollars on 14 May 2026 to shareholders on the UK and HK register of members
at the close of business in the UK on 20 March 2026.
Preference shares and Additional Tier 1 securities
Dividends on these preference shares and securities classified as equity are
recorded in the period in which they are declared.
2025 2024
$million $million
Non-cumulative redeemable preference shares:
7.014 per cent preference shares of $5 each 26 53
Floating rate preference shares of $5 each(1) 73 54
99 107
Additional Tier 1 securities: fixed rate resetting perpetual subordinated 428 350
contingent convertible securities
527 457
1 Floating rate is based on Secured Overnight Financing Rate (SOFR),
average rate paid for floating preference shares is 9.73% (2024: 7.21%).
Page 37
12. Earnings per ordinary share
Accounting policy
The Group also measures earnings per share on an underlying basis. This
differs from earnings defined in IAS 33 Earnings per share. Underlying
earnings is profit/(loss) attributable to ordinary shareholders adjusted for
profits or losses of a capital nature; amounts consequent to investment
transactions driven by strategic intent; and other infrequent and/or
exceptional transactions that are significant or material in the context of
the Group's normal business earnings for the year.
The table below provides the basis of underlying earnings.
2025 2024
$million $million
Profit for the year attributable to equity holders 5,097 4,042
Non-controlling interest (12) 8
Dividend payable on preference shares and AT1 classified as equity (527) (457)
Profit for the year attributable to ordinary shareholders 4,558 3,593
Items normalised(1):
Restructuring 320 285
FFG 531 156
DVA 31 24
Net loss on sale of businesses 10 232
Other items 45 100
Tax on normalised items (135) (114)
Underlying profit attributable to ordinary shareholders 5,360 4,276
Basic - weighted average number of shares (millions) 2,333 2,543
Diluted - weighted average number of shares (millions) 2,404 2,610
Basic earnings per ordinary share (cents) 195.4 141.3
Diluted earnings per ordinary share (cents) 189.6 137.7
Underlying basic earnings per ordinary share (cents) 229.7 168.1
Underlying diluted earnings per ordinary share (cents) 223.0 163.8
1 Refer note 2 segmental information for normalised items.
The calculation of basic earnings per share is based on the profit
attributable to equity holders of the parent and the basic weighted average
number of shares excluding treasury shares held in employees benefit trust.
When calculating diluted earnings per share, the weighted average number of
shares in issue is adjusted for the effects of all expected dilutive potential
ordinary shares held in respect of Standard Chartered PLC totalling 58 million
(2024: 59 million). The total number of share options outstanding, under
schemes considered to be potentially dilutive, was 13 million (2024: 7
million). These options have strike prices ranging from $4.94 to $14.93. Of
the total number of employee share options and share awards at 31 December
2025 there were nil share options and share awards which were anti-dilutive.
The 210 million decrease (2024: 235 million decrease) in the basic weighted
average number of shares is primarily due to the impact of the share buyback
programmes completed in the year.
Page 38
13. Financial instruments
Classification and measurement
Accounting policy
Financial assets held at amortised cost and fair value through other comprehensive income
Debt instruments held at amortised cost or held at FVOCI have contractual
terms that give rise to cash flows that are solely payments of principal and
interest (SPPI) characteristics.
In assessing whether the contractual cash flows have SPPI characteristics, the
Group considers the contractual terms of the instrument. This includes
assessing whether the financial asset contains a contractual term that could
change the timing or amount of contractual cash flows such that it would not
meet this condition. In making the assessment, the Group considers:
• Contingent events that would change the amount and timing of cash flows
• Leverage features
• Prepayment and extension terms
• Terms that limit the Group's claim to cash flows from specified assets
(e.g. non-recourse asset arrangements)
• Features that modify consideration of the time value of money - e.g.
periodical reset of interest rates
Whether financial assets are held at amortised cost or at FVOCI depends on the
objectives of the business models under which the assets are held. A business
model refers to how the Group manages financial assets to generate cash flows.
The Group makes an assessment of the objective of a business model in which an
asset is held at the individual product business line, and where applicable
within business lines depending on the way the business is managed and
information is provided to management. Factors considered include:
• How the performance of the product business line is evaluated and
reported to the Group's management
• How managers of the business model are compensated, including whether
management is compensated based on the fair value of assets or the contractual
cash flows collected
• The risks that affect the performance of the business model and how
those risks are managed
• The frequency, volume and timing of sales in prior periods, the reasons
for such sales and expectations about future sales activity
The Group's business model assessment is as follows:
Business model Business objective Characteristics Businesses Products
Hold to collect Intent is to originate financial assets and hold them to maturity, collecting • Providing financing and originating assets to earn interest income as · • Global Banking · • Loans and advances
the contractual cash flows over the term of the instrument primary income stream
• Transaction Banking • Debt securities
• Performing credit risk management activities
• Retail Lending
• Costs include funding costs, transaction costs and impairment losses
• Treasury Markets (Loans and Borrowings)
• Global Markets
Hold to collect and sell Business objective met through both hold to collect and by selling financial • Portfolios held for liquidity needs; or where a certain interest yield · • Treasury Markets · • Debt securities
assets profile is maintained; or that are normally rebalanced to achieve matching of
duration of assets and liabilities • Central Credit Unit
• Income streams come from interest income, fair value changes, and
impairment losses
Fair value through profit or loss All other business objectives, including trading and managing financial assets • Assets held for trading · • Treasury Markets · • Derivatives
on a fair value basis
• Assets that are originated, purchased, and sold for profit taking or • Global Markets • Equity shares
underwriting activity
• All other business lines • Trading portfolios
• Performance of the portfolio is evaluated on a fair value basis
• Reverse repos
• Income streams are from fair value changes or trading gains or losses
• Bond and Loan Syndication
Page 39
Financial assets which have SPPI characteristics and that are held within a
business model whose objective is to hold financial assets to collect
contractual cashflows (hold to collect) are recorded at amortised cost.
Conversely, financial assets which have SPPI characteristics but are held
within a business model whose objective is achieved by both collecting
contractual cashflows and selling financial assets (Hold to collect and sell)
are classified as held at FVOCI. Both hold to collect and hold to collect and
sell business models involve holding financial assets to collect the
contractual cashflows. However, the business models are distinct by reference
to the frequency and significance that asset sales play in meeting the
objective under which a particular group of financial assets is managed. Hold
to collect business models are characterised by asset sales that are
incidental to meeting the objectives under which a group of assets is managed.
Sales of assets under a hold to collect business model can be made to manage
increases in the credit risk of financial assets but sales for other reasons
should be infrequent or insignificant. Cashflows from the sale of financial
assets under a hold to collect and sell business model by contrast are
integral to achieving the objectives under which a particular group of
financial assets are managed. This may be the case where frequent sales of
financial assets are required to manage the Group's daily liquidity
requirements or to meet regulatory requirements to demonstrate liquidity of
financial instruments. Sales of assets under hold to collect and sell business
models are therefore both more frequent and more significant in value than
those under the hold to collect model.
Equity instruments designated as held at FVOCI
Non-trading equity instruments acquired for strategic purposes rather than
capital gain may be irrevocably designated at initial recognition as held at
FVOCI on an instrument-by-instrument basis. Dividends received are recognised
in profit or loss. Gains and losses arising from changes in the fair value of
these instruments, including foreign exchange gains and losses, are recognised
directly in equity and are never reclassified to profit or loss even on
derecognition.
Mandatorily classified at fair value through profit or loss
Financial assets and liabilities which are mandatorily held at fair value
through profit or loss are split between two subcategories as follows:
Trading, including:
• Financial assets and liabilities held for trading, which are those
acquired principally for the purpose of selling in the short-term
• Derivatives.
Non-trading mandatorily at fair value through profit or loss, including:
• Instruments in a business which has a fair value business model (see the
Group's business model assessment) which are not trading or derivatives
• Hybrid financial assets that contain one or more embedded derivatives
• Financial assets that would otherwise be measured at amortised cost or
FVOCI but which do not have SPPI characteristics
• Equity instruments that have not been designated as held at FVOCI
• Financial liabilities that constitute contingent consideration in a
business combination.
Designated at fair value through profit or loss
Financial assets and liabilities may be designated at fair value through
profit or loss when the designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise arise from
measuring assets or liabilities on a different basis ('accounting mismatch').
Financial liabilities may also be designated at fair value through profit or
loss where they are managed on a fair value basis or have an embedded
derivative where the Group is not able to separately value, and thus
bifurcate, the embedded derivative component.
Financial liabilities held at amortised cost
Financial liabilities that are not financial guarantees or loan commitments
and that are not classified as financial liabilities held at fair value
through profit or loss are classified as financial liabilities held at
amortised cost.
Preference shares which carry a mandatory coupon that represents a market rate
of interest at the issue date, or which are redeemable on a specific date or
at the option of the shareholder are classified as financial liabilities and
are presented in other borrowed funds. The dividends on these preference
shares are recognised in the income statement as interest expense on an
amortised cost basis using the effective interest method.
Financial guarantee contracts and loan commitments
The Group issues financial guarantee contracts and loan commitments in return
for fees. Financial guarantee contracts and any loan commitments issued at
below-market interest rates are initially recognised at their fair value as a
financial liability and subsequently measured at the higher of the initial
value less the cumulative amount of income recognised in accordance with the
principles of IFRS 15 Revenue from Contracts with Customers and their expected
credit loss provision. Loan commitments may be designated at fair value
through profit or loss where that is the business model under which such
contracts are held.
Fair value of financial assets and liabilities
The fair value of financial instruments is generally measured on the basis of
the individual financial instrument. However, when a group of financial assets
and financial liabilities is managed on the basis of its net exposure to
either market risk or credit risk, the fair value of the group of financial
instruments is measured on a net basis.
Page 40
The fair values of quoted financial assets and liabilities in active markets
are based on current prices. A market is regarded as active if transactions
for the asset or liability take place with sufficient frequency and volume to
provide pricing information on an ongoing basis. If the market for a financial
instrument, and for unlisted securities, is not active, the Group establishes
fair value by using valuation techniques.
Initial recognition
Regular way purchases and sales of financial assets held at fair value through
profit or loss, and held at fair value through other comprehensive income are
initially recognised on the trade date (the date on which the Group commits to
purchase or sell the asset). Loans and advances and other financial assets
held at amortised cost are recognised on the settlement date (the date on
which cash is advanced to the borrowers).
All financial instruments are initially recognised at fair value, which is
normally the transaction price, plus directly attributable transaction costs
for financial assets and liabilities which are not subsequently measured at
fair value through profit or loss.
In certain circumstances, the initial fair value may be based on a valuation
technique which may lead to the recognition of profits or losses at the time
of initial recognition. However, these profits or losses can only be
recognised when the valuation technique used is based solely on observable
market data. In those cases where the initially recognised fair value is based
on a valuation model that uses unobservable inputs, the difference between the
transaction price and the valuation model is not recognised immediately in the
income statement, it will be recognised in profit or loss following the
passage of time, or as the inputs become observable, or the transaction
matures or is terminated.
Subsequent measurement
Financial assets and financial liabilities held at amortised cost
Financial assets and financial liabilities held at amortised cost are
subsequently carried at amortised cost using the effective interest method
(see 'Interest income and expense'). Foreign exchange gains and losses are
recognised in the income statement.
Where a financial instrument carried at amortised cost is the hedged item in a
qualifying fair value hedge relationship, its carrying value is adjusted by
the fair value gain or loss attributable to the hedged risk.
Financial assets held at FVOCI
Debt instruments held at FVOCI are subsequently carried at fair value, with
all unrealised gains and losses arising from changes in fair value recognised
in other comprehensive income and accumulated in a separate component of
equity. Foreign exchange gains and losses on the amortised cost are recognised
in income. Changes in expected credit losses are recognised in the profit or
loss and are accumulated in equity. On derecognition, the cumulative fair
value gains or losses, net of the cumulative expected credit loss reserve,
are transferred to the profit or loss.
Equity investments designated at FVOCI are subsequently carried at fair value
with all unrealised gains and losses arising from changes in fair value
(including any related foreign exchange gains or losses) recognised in other
comprehensive income and accumulated in a separate component of equity. On
derecognition, the cumulative reserve is transferred to retained earnings and
is not recycled to profit or loss.
Financial assets and liabilities held at fair value through profit or loss
Gains and losses arising from changes in fair value, including contractual
interest income or expense, recorded in the net trading income line in the
profit or loss.
Derecognition of financial instruments
Financial assets which are subject to commercial refinancing where the loan is
priced to the market with no payment related concessions regardless of form of
legal documentation or nature of lending will be derecognised. Where the
Group's rights to the cash flows under the original contract have expired, the
old loan is derecognised, and the new loan is recognised at fair value. For
all other modifications for example forborne loans or restructuring, whether
or not a change in the cash flows is 'substantially different' is judgemental
and will be considered on a case-by-case basis, taking into account all the
relevant facts and circumstances.
On derecognition of a financial asset, the difference between the carrying
amount of the asset (or the carrying amount allocated to the portion of the
asset derecognised) and the sum of the consideration received (including any
new asset obtained less any new liability assumed) and any cumulative gain or
loss that had been recognised in other comprehensive income is recognised in
profit or loss except for equity instruments elected FVOCI (see above) and
cumulative fair value adjustments attributable to the credit risk of a
liability that are held in other comprehensive income.
Financial liabilities are derecognised when they are extinguished. A financial
liability is extinguished when the obligation is discharged, cancelled or
expires and this is evaluated both qualitatively and quantitatively.
However, where a financial liability has been modified, it is derecognised if
the difference between the modified cash flows and the original cash flows is
more than 10 per cent, or if less than 10 per cent, the Group will perform a
qualitative assessment to determine whether the terms of the two instruments
are substantially different. If the Group purchases its own debt, it is
derecognised and the difference between the carrying amount of the liability
and the consideration paid is included in 'Other income' except for the
cumulative fair value adjustments attributable to the credit risk of a
liability that are held in Other comprehensive income, which are never
recycled to the profit or loss.
Page 41
Modified financial instruments
Financial assets and financial liabilities whose original contractual terms
have been modified, including those loans subject to forbearance strategies,
are considered to be modified instruments. Modifications may include changes
to the tenor, cash flows and or interest rates among other factors.
Where derecognition of financial assets is appropriate (see Derecognition),
the newly recognised residual loans are assessed to determine whether the
assets should be classified as purchased or originated credit-impaired assets
(POCI). Where derecognition is not appropriate, the gross carrying amount of
the applicable instruments is recalculated as the present value of the
renegotiated or modified contractual cash flows discounted at the original
effective interest rate (or credit adjusted effective interest rate for POCI
financial assets).
The difference between the recalculated values and the pre-modified gross
carrying values of the instruments are recorded as a modification gain or loss
in the profit or loss. Gains and losses arising from modifications for credit
reasons are recorded as part of 'Credit Impairment' (see Credit Impairment
policy).
Modification gains and losses arising from non-credit reasons are recognised
either as part of 'Credit Impairment' or within income depending on whether
there has been a change in the credit risk on the financial asset subsequent
to the modification. Modification gains and losses arising on financial
liabilities are recognised within income. The movements in the applicable
expected credit loss loan positions are disclosed in further detail in Risk
Review.
Page 42
The Group's classification of its financial assets and liabilities is
summarised in the following tables.
Assets Notes Assets at fair value
Trading Derivatives held for hedging Non-trading mandatorily at fair value through profit or loss Designated at fair value through profit or loss Fair value through other comprehensive income Total financial assets at fair value Assets Total
$million $million $million $million $million $million held at amortised cost $million
$million
Cash and balances at central banks(1) - - - - - - 77,746 77,746
Financial assets held at fair value through profit or loss
Loans and advances to banks(2) 2,984 - - - - 2,984 - 2,984
Loans and advances to customers(2) 12,152 - 203 - - 12,355 - 12,355
Reverse repurchase agreements and other similar secured lending 16 - - 84,130 - - 84,130 - 84,130
Debt securities, alternative tier one and other eligible bills 86,531 - 130 43 - 86,704 - 86,704
Equity shares 8,946 - 138 - - 9,084 - 9,084
110,613 - 84,601 43 - 195,257 - 195,257
Derivative financial instruments 14 64,023 1,759 - - - 65,782 - 65,782
Loans and advances to banks(2,3) 15 - - - - - - 43,901 43,901
Of which - reverse repurchase agreements and other similar secured lending 16 - - - - - - 3,724 3,724
Loans and advances to customers(2) 15 - - - - - - 286,788 286,788
Of which - reverse repurchase agreements and other similar secured lending 16 - - - - - - 8,242 8,242
Investment securities
Debt securities, alternative tier one and other eligible bills - - - - 108,503 108,503 57,250 165,753
Equity shares - - - - 1,203 1,203 - 1,203
- - - - 109,706 109,706 57,250 166,956
Other assets 20 - - 36,770 36,770
Assets held for sale 21 - - - - - - 1,042 1,042
Total at 31 December 2025 174,636 1,759 84,601 43 109,706 370,745 503,497 874,242
Cash and balances at central banks(1) - 63,447 63,447
Financial assets held at fair value through
profit or loss
Loans and advances to banks(2) 2,213 - - - - 2,213 - 2,213
Loans and advances to customers(2) 6,912 - 172 - - 7,084 - 7,084
Reverse repurchase agreements and other similar secured lending 16 336 - 85,859 - - 86,195 - 86,195
Debt securities, alternative tier one and other eligible bills 76,329 - 140 70 - 76,539 - 76,539
Equity shares 5,285 - 201 - - 5,486 - 5,486
91,075 - 86,372 70 - 177,517 - 177,517
Derivative financial instruments 14 78,906 2,566 - - - 81,472 - 81,472
Loans and advances to banks(2,3) 15 - - - - - - 43,593 43,593
Of which - reverse repurchase agreements and other similar secured lending 16 - - - - - - 2,946 2,946
Loans and advances to customers(2) 15 - - - - - - 281,032 281,032
Of which - reverse repurchase agreements and other similar secured lending - - - - - - 9,660 9,660
Investment securities
Debt securities, alternative tier one and other eligible bills - - - - 88,425 88,425 55,137 143,562
Equity shares - - - - 994 994 - 994
- - - - 89,419 89,419 55,137 144,556
Other assets 20 - - 34,585 34,585
Assets held for sale 21 - - - 5 - 5 884 889
Total at 31 December 2024 169,981 2,566 86,372 75 89,419 348,413 478,678 827,091
1 Comprises cash held at central banks in restricted accounts of $11,630
million (31 December 2024: $7,799 million), or on demand, or placements which
are contractually due to mature over-night only. Other placements with central
banks are reported as part of Loans and advances to customers.
2 Further analysed in Risk review and Capital review.
3 Loans and advances to banks includes amounts due on demand from banks and
other central banks.
Page 43
Liabilities Notes Liabilities at fair value Amortised Total
cost $million
$million
Trading Derivatives Designated Total
held for
at fair value through
financial
$million
hedging
profit or loss
liabilities
at fair value
$million $million
$million
Financial liabilities held at fair value through profit or loss
Deposits by banks - - 2,328 2,328 - 2,328
Customer accounts - - 19,414 19,414 - 19,414
Repurchase agreements and other similar secured borrowing 16 - - 36,307 36,307 - 36,307
Debt securities in issue 22 - - 16,009 16,009 - 16,009
Short positions 15,539 - - 15,539 - 15,539
15,539 - 74,058 89,597 - 89,597
Derivative financial instruments 14 67,046 1,158 - 68,204 - 68,204
Deposits by banks - - - - 30,846 30,846
Customer accounts - - - - 530,161 530,161
Repurchase agreements and other similar secured borrowing 16 - - - - 7,757 7,757
Debt securities in issue 22 - - - - 72,858 72,858
Other liabilities 23 - - - - 45,788 45,788
Subordinated liabilities and other borrowed funds 27 - - - - 8,834 8,834
Liabilities included in disposal groups held for sale 21 - - - - 908 908
Total at 31 December 2025 82,585 1,158 74,058 157,801 697,152 854,953
Financial liabilities held at fair value through profit or loss
Deposits by banks - - 1,893 1,893 - 1,893
Customer accounts - - 21,772 21,772 - 21,772
Repurchase agreements and other similar secured borrowing 16 925 - 32,614 33,539 - 33,539
Debt securities in issue 22 1 - 13,730 13,731 - 13,731
Short positions 14,527 - - 14,527 - 14,527
15,453 - 70,009 85,462 - 85,462
Derivative financial instruments 14 80,037 2,027 - 82,064 - 82,064
Deposits by banks - - - - 25,400 25,400
Customer accounts - - - - 464,489 464,489
Repurchase agreements and other similar secured borrowing 16 - - - - 12,132 12,132
Debt securities in issue 22 - - - - 64,609 64,609
Other liabilities 23 - - - - 44,047 44,047
Subordinated liabilities and other borrowed funds 27 - - - - 10,382 10,382
Liabilities included in disposal groups held for sale 21 - - - - 360 360
Total at 31 December 2024 95,490 2,027 70,009 167,526 621,419 788,945
Page 44
Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount reported in the
balance sheet when there is a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a net basis, or to
realise the asset and settle the liability simultaneously.
In practice, for credit mitigation, the Group is able to offset assets and
liabilities which do not meet the IAS 32 netting criteria set out below. Such
arrangements include master netting arrangements for derivatives and global
master repurchase agreements for repurchase and reverse repurchase
transactions. These agreements generally allow that all outstanding
transactions with a particular counterparty can be offset but only in the
event of default or other predetermined events.
In addition, the Group also receives and pledges readily realisable collateral
for derivative transactions to cover net exposure in the event of a default.
Under repurchase and reverse repurchase agreements the Group pledges (legally
sells) and obtains (legally purchases) respectively, highly liquid assets
which can be sold in the event of a default.
The following tables set out the impact of netting on the balance sheet. This
comprises derivative transactions settled through an enforceable netting
agreement where we have the intent and ability to settle net and which are
offset on the balance sheet.
Gross amounts of recognised financial Impact of Net amounts of financial instruments presented in the balance sheet Related amount not offset Net amount
instruments
in the balance sheet
offset in the $million $million
$million
balance sheet
$million
Financial instruments Financial
collateral
$million
$million
At 31 December 2025
Derivative financial instruments 78,518 (12,736) 65,782 (44,712) (14,168) 6,902
Reverse repurchase agreements and other similar secured lending 160,964 (64,868) 96,096 - (96,096) -
Total Assets 239,482 (77,604) 161,878 (44,712) (110,264) 6,902
Derivative financial instruments 80,923 (12,719) 68,204 (44,712) (12,868) 10,624
Repurchase agreements and other similar secured borrowing 108,932 (64,868) 44,064 - (44,064) -
Total Liabilities 189,855 (77,587) 112,268 (44,712) (56,932) 10,624
At 31 December 2024
Derivative financial instruments 97,902 (16,430) 81,472 (60,280) (15,005) 6,187
Reverse repurchase agreements and other similar secured lending 137,115 (38,314) 98,801 - (98,801) -
Total Assets 235,017 (54,744) 180,273 (60,280) (113,806) 6,187
Derivative financial instruments 98,494 (16,430) 82,064 (60,280) (11,046) 10,738
Repurchase agreements and other similar secured borrowing 83,985 (38,314) 45,671 - (45,671) -
Total Liabilities 182,479 (54,744) 127,735 (60,280) (56,717) 10,738
Related amounts not offset in the balance sheet comprises:
• Financial instruments not offset in the balance sheet but covered by an
enforceable netting arrangement. This comprises master netting arrangements
held against derivative financial instruments and excludes the effect of
over-collateralisation
• Financial instruments where a legal opinion evidencing enforceability of
the right of offset may not have been sought, or may have been unable to such
opinion
• Financial collateral comprises cash collateral pledged and received for
derivative financial instruments and collateral bought and sold for reverse
repurchase and repurchase agreements respectively and excludes the effect of
over-collateralisation
Financial liabilities designated at fair value through profit or loss
2025 2024
$million
$million
Carrying Balance aggregate fair value 74,058 70,009
Amount Contractually obliged to repay at maturity 73,843 70,166
Difference between aggregate fair value and contractually obliged to repay at 215 (157)
maturity
Cumulative change in Fair Value accredited to Credit Risk Difference (433) (276)
The net fair value loss on financial liabilities designated at fair value
through profit or loss was $3,476 million for the year (31 December 2024: net
loss of $3,252 million).
Further details of the Group's own credit adjustment (OCA) valuation technique
is described later in this Note.
Page 45
Valuation of financial instruments
The Valuation Methodology function is responsible for independent price
verification, oversight of fair value and appropriate value adjustments and
escalation of valuation issues. Independent price verification is the process
of determining that the valuations incorporated into the financial statements
are validated independent of the business area responsible for the product.
The Valuation Methodology function has oversight of the fair value adjustments
to ensure the financial instruments are priced to exit. These are key controls
in ensuring the material accuracy of the valuations incorporated in the
financial statements. The market data used for price verification (PV) may
include data sourced from recent trade data involving external counterparties
or third parties such as Bloomberg, Reuters, brokers and consensus pricing
providers. The Valuation Methodology function performs an ongoing review of
the market data sources that are used as part of the PV and fair value
processes which are formally documented on a semi-annual basis detailing the
suitability of the market data used for price testing. Price verification uses
independently sourced data that is deemed most representative of the market
the instruments trade in. To determine the quality of the market data inputs,
factors such as independence, relevance, reliability, availability of multiple
data sources and methodology employed by the pricing provider are taken into
consideration.
The Valuation and Benchmarks Committee (VBC) is the valuation governance forum
consisting of representatives from Traded Risk Management, Product Control,
Valuation Methodology and the business, which meets monthly to discuss and
approve the independent valuations of the inventory. For Strategic Investments
and Principal Finance, the respective Valuation Forums and Investment
Committee meetings are held on a quarterly basis to review investments and
valuations.
The Group evaluates the significance of financial instruments and material
accuracy of the valuations incorporated in the financial statements as they
involve a high degree of judgement and estimation uncertainty in determining
the carrying values of financial assets and liabilities at the balance sheet
date.
Significant accounting estimates
The significant accounting estimates include:
• Fair value of financial instruments is determined using valuation
techniques and estimates which, to the extent possible, use market observable
inputs, but in some cases use non-market observable inputs. Changes in the
observability of significant valuation inputs can materially affect the fair
values of financial instruments
• When establishing the exit price of a financial instrument using a
valuation technique, the Group estimates valuation adjustments in determining
the fair value.
Significant accounting judgements
The significant accounting judgements include:
• In determining the valuation of financial instruments, the Group makes
judgements on the amounts reserved to cater for model and valuation risks,
which cover both Level 2 and Level 3 assets, and the significant valuation
judgements in respect of Level 3 instruments
• Where the estimated measurement of fair value is more judgemental in
respect of Level 3 assets, these are valued based on models that use a
significant degree of non-market-based unobservable inputs.
Valuation techniques
Refer to the fair value hierarchy explanation - Level 1, 2 and 3
• Financial instruments held at fair value
‒ Debt securities - asset-backed securities: Asset-backed securities are
valued based on external prices obtained from consensus pricing providers,
broker quotes, recent trades, arrangers' quotes, etc. Where an observable
price is available for a given security, it is classified as Level 2. In
instances where third-party prices are not available or reliable, the security
is classified as Level 3. The fair value of Level 3 securities is estimated
using market standard cash flow models with input parameter assumptions which
include prepayment speeds, default rates, discount margins derived from
comparable securities with similar vintage, collateral type, and credit
ratings.
‒ Debt securities in issue: These debt securities relate to structured
notes issued by the Group. Where independent market data is available through
pricing vendors and broker sources these positions are classified as Level 2.
Where such liquid external prices are not available, valuations of these debt
securities are implied using input parameters such as bond spreads and credit
spreads and are classified as Level 3. These input parameters are determined
with reference to the same issuer (if available) or proxies from comparable
issuers or assets.
‒ Derivatives: Derivative products are classified as Level 2 if the
valuation of the product is based upon input parameters which are observable
from independent and reliable market data sources. Derivative products are
classified as Level 3 if there are significant valuation input parameters
which are unobservable in the market, such as products where the performance
is linked to more than one underlying variable. Examples are commodity crack
swaption, equity options based on the performance of two or more underlying
indices and interest rate products with quanto payouts. In most cases these
unobservable correlation parameters cannot be implied from the market, and
methods such as historical analysis and comparison with historical levels or
other benchmark data must be employed.
Page 46
‒ Equity shares - unlisted equity investments: Valuation of unlisted
equity instruments is determined using commonly accepted valuation techniques
considered most appropriate to the investment, which may include the market
approach, income approach or asset-based approach, depending on the underlying
fact patterns and circumstances. All unlisted equity instruments are
classified as Level 3, except for those where observable inputs are available
(e.g. over-the-counter prices), as the valuation techniques applied generally
involve unobservable inputs that requirement significant judgment, which
include valuation multiples, discount rates, forecasted cash flows, etc.
‒ Loans and advances: These primarily include loans in the FM Bond and
Loan Syndication business which were not fully syndicated as at the balance
sheet date and other financing transactions within Financial Markets, and
loans and advances including reverse repurchase agreements that do not have
SPPI cashflows or are managed on a fair value basis. Where available, its loan
valuation is based on observable clean sales transactions prices or market
observable spreads. If observable credit spreads are not available, proxy
spreads based on comparables with similar credit grade, sector and region, are
used. Where observable transaction prices, credit spreads and market standard
proxy methods are available, these loans are classified as Level 2. Where
there are no recent transactions or comparables, these loans are classified as
Level 3.
‒ Other debt securities: These debt securities include convertible bonds,
corporate bonds, credit and structured notes. Where quoted prices are
available through pricing vendors, brokers or observable trading activities
from liquid markets, these are classified as Level 2 and valued using such
quotes. Where there are significant valuation inputs which are unobservable in
the market, due to illiquid trading or the complexity of the product, these
are classified as Level 3. The valuations of these debt securities are implied
using input parameters such as bond spreads and credit spreads. These input
parameters are determined with reference to the same issuer (if available) or
proxied from comparable issuers or assets.
• Financial instruments held at amortised cost
The following sets out the Group's basis for establishing fair values of
amortised cost financial instruments and their classification between Levels
1, 2 and 3. As certain categories of financial instruments are not actively
traded, there is a significant level of management judgement involved in
calculating the fair values:
‒ Cash and balances at central banks: The fair value of cash and balances
at central banks is their carrying amounts
‒ Debt securities in issue, subordinated liabilities and other borrowed
funds: The aggregate fair values are calculated based on quoted market prices.
For those notes where quoted market prices are not available, a discounted
cash flow model is used based on a current market related yield curve
appropriate for the remaining term to maturity
‒ Deposits and borrowings: The estimated fair value of deposits with no
stated maturity is the amount repayable on demand. The estimated fair value of
fixed interest-bearing deposits and other borrowings without quoted market
prices is based on discounted cash flows using the prevailing market rates for
debts with a similar Credit Risk and remaining maturity
‒ Investment securities: For investment securities that do not have
directly observable market values, the Group utilises a number of valuation
techniques to determine fair value. Where available, securities are valued
using input proxies from the same or closely related underlying (for example,
bond spreads from the same or closely related issuer) or input proxies from a
different underlying (for example, a similar bond but using spreads for a
particular sector and rating). Certain instruments cannot be proxies as set
out above, and in such cases the positions are valued using non-market
observable inputs. This includes those instruments held at amortised cost and
predominantly relates to asset-backed securities. The fair value for such
instruments is usually proxies from internal assessments of the underlying
cash flows
‒ Loans and advances to banks and customers: For loans and advances to
banks, the fair value of floating rate placements and overnight deposits is
their carrying amounts. The estimated fair value of fixed interest-bearing
deposits is based on discounted cash flows using the prevailing money market
rates for debts with a similar Credit Risk and remaining maturity. The Group's
loans and advances to customers' portfolio is well diversified by geography
and industry. Approximately a quarter of the portfolio re-prices within one
month, and approximately half re-prices within 12 months. Loans and advances
are presented net of provisions for impairment. The fair value of loans and
advances to customers with a residual maturity of less than one year generally
approximates the carrying value. The estimated fair value of loans and
advances with a residual maturity of more than one year represents the
discounted amount of future cash flows expected to be received, including
assumptions relating to prepayment rates and Credit Risk. Expected cash flows
are discounted at current market rates to determine fair value. The Group has
a wide range of individual instruments within its loans and advances portfolio
and as a result providing quantification of the key assumptions used to value
such instruments is impractical
‒ Other assets: Other assets comprise primarily cash collateral and trades
pending settlement. The carrying amount of these financial instruments is
considered to be a reasonable approximation of fair value as they are either
short-term in nature or re-price to current market rates frequently
Page 47
Fair value adjustments
When establishing the exit price of a financial instrument using a valuation
technique, the Group considers adjustments to the modelled price which market
participants would make when pricing that instrument. The main valuation
adjustments (described further below) in determining fair value for financial
assets and financial liabilities are as follows:
01.01.25 Movement during the year 31.12.25 01.01.24 Movement 31.12.24
during the year
$million $million $million $million
$million
$million
Bid-offer valuation adjustment 117 6 123 115 2 117
Credit valuation adjustment 134 (20) 114 119 15 134
Debit valuation adjustment (105) 30 (75) (129) 24 (105)
Model valuation adjustment 5 (2) 3 4 1 5
Funding valuation adjustment 41 (9) 32 33 8 41
Other fair value adjustments 26 22 48 25 1 26
Total 218 27 245 167 51 218
Income deferrals
Day 1 and other deferrals 138 9 147 109 29 138
Total 138 9 147 109 29 138
Note: Bracket represents an asset and credit to the income statement.
• Bid-offer valuation adjustment: Generally, market parameters are marked
on a mid-market basis in the revaluation systems, and a bid-offer valuation
adjustment is required to quantify the expected cost of neutralising the
business' positions through dealing away in the market, thereby bringing long
positions to bid and short positions to offer. The methodology to calculate
the bid-offer adjustment for a derivative portfolio involves netting between
long and short positions and the grouping of risk by strike and tenor based on
the hedging strategy where long positions are marked to bid and short
positions marked to offer in the systems.
• Credit valuation adjustment (CVA): The Group accounts for CVA against
the fair value of derivative products. CVA is an adjustment to the fair value
of the transactions to reflect the possibility that our counterparties may
default and we may not receive the full market value of the outstanding
transactions. It represents an estimate of the adjustment a market participant
would include when deriving a purchase price to acquire our exposures. CVA is
calculated for each subsidiary, and within each entity for each counterparty
to which the entity has exposure and takes account of any collateral we may
hold. The Group calculates the CVA by using estimates of future positive
exposure, market-implied probability of default (PD) and recovery rates. Where
market-implied data is not readily available, we use market-based proxies to
estimate the PD. Wrong-way risk occurs when the exposure to a counterparty is
adversely correlated with the credit quality of that counterparty, and the
Group has implemented a model to capture this impact for key wrong-way
exposures. The Group also captures the uncertainties associated with wrong-way
risk in the Group's Prudential Valuation Adjustments framework.
• Debit valuation adjustment (DVA): The Group calculates DVA adjustments
on its derivative liabilities to reflect changes in its own credit standing.
The Group's DVA adjustments will increase if its credit standing worsens and
conversely, decrease if its credit standing improves. For derivative
liabilities, a DVA adjustment is determined by applying the Group's
probability of default to the Group's negative expected exposure against the
counterparty. The Group's probability of default and loss expected in the
event of default is derived based on bond and CDS spreads associated with the
Group's issuances and market standard recovery levels. The expected exposure
is modelled based on the simulation of the underlying risk factors over the
expected life of the deal. This simulation methodology incorporates the
collateral posted by the Group and the effects of master netting agreements.
• Model valuation adjustment: Valuation models may have pricing
deficiencies or limitations that require a valuation adjustment. These pricing
deficiencies or limitations arise due to the choice, implementation and
calibration of the pricing model.
• Funding valuation adjustment (FVA): The Group makes FVA adjustments
against derivative products, including embedded derivatives. FVA reflects an
estimate of the adjustment to its fair value that a market participant would
make to incorporate funding costs or benefits that could arise in relation to
the exposure. FVA is calculated by determining the net expected exposure at a
counterparty level and then applying a funding rate to those exposures that
reflect the market cost of funding. The FVA for uncollateralised (including
partially collateralised) derivatives incorporates the estimated present value
of the market funding cost or benefit associated with funding these
transactions.
• Other fair value adjustments: For certain products, the prices cannot be
replicated by usual models or the choice of model inputs can be more
subjective. In these circumstances, an adjustment may be necessary to reflect
the prices available in the market. In general, where there is a high degree
of uncertainty in the valuation (e.g. due to the nature of the trade, model
inputs, model selection etc.), an adjustment can be taken to adopt a more
conservative value to better reflect the expected exit price.
• Day one and other deferrals: In certain circumstances the initial fair
value is based on a valuation technique which differs to the transaction price
at the time of initial recognition. However, these gains can only be
recognised when the valuation technique used is based primarily on observable
market data. In those cases where the initially recognised fair value is based
on a valuation model that uses inputs which are not observable in the market,
the difference between the transaction price and the valuation model is not
recognised immediately in the income statement. The difference is amortised to
the income statement until the inputs become observable, or the transaction
matures or is terminated. Other deferrals primarily represent adjustments
taken to reflect the specific terms and conditions of certain derivative
contracts which affect the termination value at the measurement date.
Page 48
In addition, the Group calculates own credit adjustment (OCA) on its issued
debt designated at fair value, including structured notes, in order to reflect
changes in its own credit standing. Issued debt is discounted utilising the
spread at which similar instruments would be issued or bought back at the
measurement date as this reflects the value from the perspective of a market
participant who holds the identical item as an asset. OCA measures the
difference between the fair value of issued debt as of reporting date and
theoretical fair values of issued debt adjusted up or down for changes in own
credit spreads from inception date to the measurement date. Under IFRS 9 the
change in the OCA component is reported under other comprehensive income. The
Group's OCA reserve will increase if its credit standing worsens in comparison
to the inception of the trade and, conversely, decrease if its credit standing
improves. The Group's OCA reserve will reverse over time as its liabilities
mature.
Fair value hierarchy - financial instruments held at fair value
The fair values of quoted financial assets and liabilities in active markets
are based on current prices. A market is regarded as active if transactions
for the asset or liability take place with sufficient frequency and volume to
provide pricing information on an ongoing basis. Wherever possible, fair
values have been calculated using unadjusted quoted market prices in active
markets for identical instruments held by the Group. Where quoted market
prices are not available, or are unreliable because of poor liquidity, fair
values have been determined using valuation techniques which, to the extent
possible, use market observable inputs, but in some cases use unobservable
inputs. Valuation techniques used include discounted cash flow analysis and
pricing models and, where appropriate, comparison with instruments that have
characteristics similar to those of the instruments held by the Group.
Assets and liabilities carried at fair value or for which fair values are
disclosed have been classified into three levels according to the
observability of the significant inputs used to determine the fair values.
Changes in the observability of significant valuation inputs during the
reporting period may result in a transfer of assets and liabilities within the
fair value hierarchy. The Group recognises transfers between levels of the
fair value hierarchy when there is a significant change in either its
principal market or the level of observability of the inputs to the valuation
techniques as at the end of the reporting period.
• Level 1: Fair value measurements are those derived from unadjusted
quoted prices in active markets for identical assets or liabilities.
• Level 2: Fair value measurements are those with quoted prices for
similar instruments in active markets or quoted prices for identical or
similar instruments in inactive markets and financial instruments valued using
models where all significant inputs are observable.
• Level 3: Fair value measurements are those where inputs which could have
a significant effect on the instrument's valuation are not based on observable
market data.
Page 49
The following tables show the classification of financial instruments held at
fair value into the valuation hierarchy:
Assets 2025 2024
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
$million $million $million $million $million $million $million $million
Financial instruments held at fair value through
profit or loss
Loans and advances to banks - 2,685 299 2,984 - 2,213 - 2,213
Loans and advances to customers - 8,891 3,464 12,355 - 5,147 1,937 7,084
Reverse repurchase agreements and other similar secured lending - 80,446 3,684 84,130 19 82,937 3,239 86,195
Debt securities and other eligible bills 38,015 45,365 3,324 86,704 32,331 42,615 1,593 76,539
Of which:
Issued by central banks & governments 35,078 21,875 - 56,953 30,278 13,355 9 43,642
Issued by corporates other than financial institutions(1) 71 5,531 232 5,834 7 4,860 399 5,266
Issued by financial institutions(1) 2,866 17,959 3,092 23,917 2,046 24,400 1,185 27,631
Equity shares 6,319 2,455 310 9,084 5,287 8 191 5,486
Derivative financial instruments 766 64,926 90 65,782 386 80,958 128 81,472
Of which:
Foreign exchange 132 55,776 35 55,943 140 72,870 37 73,047
Interest rate 39 6,143 46 6,228 27 6,296 80 6,403
Credit - 488 5 493 - 388 9 397
Equity and stock index options - 332 4 336 - 349 2 351
Commodity 595 2,187 - 2,782 219 1,055 - 1,274
Investment securities
Debt securities and other eligible bills 67,058 41,445 - 108,503 50,249 38,176 - 88,425
Of which:
Issued by central banks & governments 53,830 22,336 - 76,166 41,395 16,916 - 58,311
Issued by corporates other than financial institutions(1) - 438 - 438 - 490 - 490
Issued by financial institutions(1) 13,228 18,671 - 31,899 8,854 20,770 - 29,624
Equity shares 34 2 1,167 1,203 27 2 965 994
Total assets at 31 December(2) 112,192 246,215 12,338 370,745 88,299 252,056 8,053 348,408
Liabilities
Financial instruments held at fair value through
profit or loss
Deposits by banks - 2,059 269 2,328 - 1,522 371 1,893
Customer accounts - 15,936 3,478 19,414 - 19,058 2,714 21,772
Repurchase agreements and other similar - 36,307 - 36,307 - 33,539 - 33,539
secured borrowing
Debt securities in issue - 14,925 1,084 16,009 - 12,317 1,414 13,731
Short positions 8,674 6,789 76 15,539 8,789 5,558 180 14,527
Derivative financial instruments 380 67,598 226 68,204 419 81,387 258 82,064
Of which:
Foreign exchange 155 56,427 21 56,603 183 69,684 8 69,875
Interest rate 83 6,464 22 6,569 14 8,586 23 8,623
Credit - 1,958 128 2,086 - 2,131 189 2,320
Equity and stock index options - 428 54 482 - 157 37 194
Commodity 142 2,321 1 2,464 222 829 1 1,052
Total liabilities at 31 December 9,054 143,614 5,133 157,801 9,208 153,381 4,937 167,526
1 Includes covered bonds of $3,045 million (2024: $3,727 million),
securities issued by Multilateral Development Banks/International
Organisations of $16,039 million (2024: $10,679 million), and State-owned
agencies and development banks of $27,449 million(2024: $16,759 million).
2 The table above does not include held for sale assets of nil million
(2024: $5 million) .These are reported in Note 21 together with their fair
value hierarchy.
The fair value of financial assets and financial liabilities classified as
Level 2 in the fair value hierarchy that are subject to complex modelling
techniques is $327 million (2024: $739 million) and $314 million (2024: $320
million) respectively.
There were no significant changes to valuation or levelling approaches in
2025.
There were no significant transfers of financial assets and liabilities
measured at fair value between Level 1 and Level 2 during the year.
Page 50
Fair value hierarchy - financial instruments measured at amortised cost
The following table shows the carrying amounts and incorporates the Group's
estimate of fair values of those financial assets and liabilities not
presented on the Group's balance sheet at fair value. These fair values may be
different from the actual amount that will be received or paid on the
settlement or maturity of the financial instrument. For certain instruments,
the fair value may be determined using assumptions for which no observable
prices are available.
2025 2024
Carrying value Fair value Carrying value Fair value
$million $million
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
$million $million $million $million $million $million $million $million
Assets
Cash and balances at central banks¹ 77,746 - 77,746 - 77,746 63,447 - 63,447 - 63,447
Loans and advances to banks 43,901 - 43,834 83 43,917 43,593 - 43,430 165 43,595
of which - reverse repurchase agreements and other similar secured lending 3,724 - 3,733 - 3,733 2,946 - 2,948 - 2,948
Loans and advances to customers 286,788 - 28,759 257,093 285,852 281,032 - 40,582 238,986 279,568
of which - reverse repurchase agreements and other similar secured lending 8,242 - 8,242 - 8,242 9,660 - 9,618 42 9,660
Investment securities(2) 57,250 - 56,427 - 56,427 55,137 - 53,050 24 53,074
Other assets¹ 36,770 - 36,770 - 36,770 34,585 - 34,585 - 34,585
Assets held for sale 1,042 74 178 790 1,042 884 58 353 473 884
Total as at 31 December 503,497 74 243,714 257,966 501,754 478,678 58 235,447 239,648 475,153
Liabilities
Deposits by banks 30,846 - 30,846 - 30,846 25,400 - 25,238 - 25,238
Customer accounts 530,161 - 526,569 - 526,569 464,489 - 461,549 - 461,549
Repurchase agreements and other similar secured borrowing 7,757 - 7,757 - 7,757 12,132 - 12,133 - 12,133
Debt securities in issue 72,858 36,578 36,392 - 72,970 64,609 32,209 32,181 - 64,390
Subordinated liabilities and other borrowed funds 8,834 8,045 607 - 8,652 10,382 9,599 429 - 10,028
Other liabilities¹ 45,788 - 45,788 - 45,788 44,047 - 44,047 - 44,047
Liabilities held for sale 908 147 761 - 908 360 89 271 - 360
Total as at 31 December 697,152 44,770 648,720 - 693,490 621,419 41,897 575,848 - 617,745
1 The carrying amount of these financial instruments is considered to be a
reasonable approximation of fair value as they are short-term in nature or
reprice to current market rates frequently.
2 Includes Government bonds and Treasury bills of $27,813 million at 31
December 2025 (31 December 2024: $23,150 million).
Loans and advances to customers by client segment(1)
2025 2024
Carrying value Fair value Carrying value Fai
r
val
ue
Stage 3 Stage 1 and stage 2 Total Stage 3 Stage 1 and stage 2 Total Stage 3 Stage 1 and stage 2 Total Stage 3 Stage 1 and stage 2 Total
$million $million $million $million $million $million $million $million $million $million
Corporate & Investment Banking 1,987 140,193 142,180 1,974 140,463 142,437 1,298 137,006 138,304 1,174 137,234 138,408
Wealth &
Retail Banking 877 126,100 126,977 875 125,023 125,898 858 118,390 119,248 858 116,823 117,681
Ventures 13 2,646 2,659 13 2,646 2,659 1 1,388 1,389 - 1,388 1,388
Central & other items - 14,972 14,972 - 14,858 14,858 98 21,993 22,091 98 21,993 22,091
Total as at 2,877 283,911 286,788 2,862 282,990 285,852 2,255 278,777 281,032 2,130 277,438 279,568
31 December
1 Loans and advances includes reverse repurchase agreements and other
similar secured lending: carrying value $8,242 million and fair value $8,243
million (31 December 2024: $9,660 million and $9,660 million respectively).
Page 51
Fair value of financial instruments
Level 3 Summary and significant unobservable inputs
The following table presents the Group's primary Level 3 financial instruments
which are held at fair value. The table also presents the valuation techniques
used to measure the fair value of those financial instruments, the significant
unobservable inputs, the range of values for those inputs and the weighted
average of those inputs:
Instrument Value as at Principal valuation technique Significant unobservable inputs Range(1) Weighted
31 December 2025
average(2)
Assets Liabilities
$million $million
Loans and advances to banks 299 - Discounted cash flows Price/yield 4.4% - 4.9% 4.6%
Loans and advances to customers(3) 3,464 - Discounted cash flows Price/yield 2.1% - 61.3% 8.9%
Recovery rate 99.98% - 99.99% 99.99%
Comparable pricing/yield Price 29.4% - 100% 93.2%
Reverse repurchase agreements and other similar secured lending 3,684 - Discounted cash flows Repo curve 0.7% - 8.1% 5.4%
Price/yield 4.1% - 25.1% 9.6%
Debt securities, alternative tier one and other eligible securities 3,324 - Discounted cash flows Price/yield 2.6% - 53.8% 7.7%
Equity shares (includes private equity investments) 1,477 - Comparable pricing/yield(4) Price N/A N/A
Discounted cash flows Discount rates 8.2% - 25.9% 10.5%
Option pricing model Equity value based on EV/Revenue multiples 5.4x - 23.0x 11.54x
Equity value based on EV/EBITDA multiples 3.2x - 3.2x 3.2x
Equity value based on volatility 40.0% - 40.0% 40.0%
Derivative financial instruments of which:
Foreign exchange 35 21 Option pricing model Foreign exchange option implied volatility 0.4% - 44.6% 33.0%
Discounted cash flows Interest rate curves 0.3% - 36.0% 14.3%
Foreign exchange curves 1.3% - 3.9% 1.7%
Commodity - 1 Discounted cash flows Commodity prices $0.2 - $341.2 $62.4
Internal pricing model CM-CM correlation 59.7% - 97.4% 78.6%
Interest rate 46 22 Discounted cash flows Interest rate curves 3.5% - 36.0% 9.8%
Credit 5 128 Discounted cash flows Credit spreads 0.9% - 1.0% 0.9%
Price/yield 2.7% - 25.1% 7.3%
Internal pricing model Bond option implied volatility 5.0% - 13.0% 10.8%
Equity and stock index 4 54 Internal pricing model Equity-Equity correlation 50.8% - 100% 77.6%
Equity-FX correlation (26.9)% - 46.8% 6.7%
Deposits by banks - 269 Discounted cash flows Price/Yield 4.3% - 6.1% 5.7%
Customer accounts - 3,478 Internal pricing model Equity-Equity correlation 50.8% - 100% 77.6%
Equity-FX correlation (26.9)% - 46.8% 6.7%
Price/yield 2.6% - 20.8% 8.7%
Debt securities in issue - 1,084 Discounted cash flows Price/yield 7.4% - 19.0% 17.1%
Interest rate curves 3.6% - 36.0% 15.1%
Internal pricing model Equity-Equity correlation 50.8% - 100% 77.6%
Equity-FX correlation (26.9)% - 46.8% 6.7%
Option pricing model Bond option implied volatility 5.0% - 13.0% 10.8%
Short positions - 76 Discounted cash flows Price/yield 7.13% - 7.13% 7.1%
Total 12,338 5,133
1 The ranges of values shown in the above table represent the highest and
lowest levels used in the valuation of the Group's Level 3 financial
instruments as
at 31 December 2025. The ranges of values used are reflective of the
underlying characteristics of these Level 3 financial instruments based on the
market conditions at the balance sheet date. However, these ranges of values
may not represent the uncertainty in fair value measurements of the Group's
Level 3 financial instruments.
2 Weighted average for non-derivative financial instruments has been
calculated by weighting inputs by the relative fair value. Weighted average
for
derivatives has been provided by weighting inputs by the risk relevant to that
variable. N/A has been entered for the cases where weighted average is not a
meaningful indicator.
3 The inputs for Loans and advances to customers under Discounted Cash flow
technique have been split to show as a separate line under Comparable
pricing/yield for better representation of material inputs.
4 The inputs for equity shares under Comparable pricing/yield technique have
been consolidated under 'Price' as they are not individually material.
Page 52
Instrument Value as at Principal valuation technique Significant unobservable inputs Range(1) Weighted
31 December 2024
average(2)
Assets Liabilities
$million $million
Loans and advances to customers(3) 1,937 - Discounted cash flows Price/yield 1.0% - 26.1% 7.7%
Recovery rate 93.2% - 95.6% 95.1%
Comparable pricing/yield Price 1.2% - 100% 89.9%
Reverse repurchase agreements and other similar secured lending 3,239 - Discounted cash flows Repo curve 2.0% - 7.6% 6.2%
Price/yield 2.3% - 10.5% 6.4%
Debt securities, alternative tier one and other eligible securities 1,584 - Discounted cash flows Price/yield 0.7% - 15.3% 6.9%
Recovery rate 0.01% - 16.3% 9.2%
Government bonds and treasury bills 9 - Discounted cash flows Price/yield 23.5% - 23.5% 23.5%
Equity shares (includes private equity investments) 1,156 - Comparable pricing/yield(4) Price N/A N/A
Discounted cash flows Discount rates 8.3% - 20.4% 10.1%
Option pricing model Equity value based on EV/Revenue multiples 5.7x - 23.6x 16.2x
Equity value based on EV/EBITDA multiples 10.1x - 10.1x 10.1x
Equity value based on volatility 30.2% - 50.0% 30.5%
Derivative financial instruments of which:
Foreign exchange 37 8 Option pricing model Foreign exchange option implied volatility 10.2% - 46.2% 42.0%
Interest rate curves 3.5% - 9.0% 4.2%
Foreign exchange curves (0.03)% - 34.3% 6.1%
Commodity - 1 Discounted cash flows Commodity prices $383.0 - $391.0 $387.0
CM-CM correlation 73.7% - 97.9% 86.0%
Interest rate 80 23 Discounted cash flows Interest rate curves 3.5% - 43.9% 5.1%
Option pricing model Bond option implied volatility 2.3% - 4.7% 3.5%
Credit 9 189 Discounted cash flows Credit spreads 0.1% - 1.9% 0.9%
Price/yield 4.8% - 6.6% 5.5%
Equity and stock index 2 37 Internal pricing model Equity-Equity correlation 44.9% - 100% 80.0%
Equity-FX correlation (36.4)% - 48.9% 5.0%
Deposits by banks - 371 Discounted cash flows Credit spreads 0.2% - 3.5% 1.5%
Customer accounts - 2,714 Internal pricing model Equity-Equity correlation 44.9% - 100% 80.0%
Equity-FX correlation (36.4)% - 48.9% 5.0%
Discounted cash flows Interest rate curves 1.4% - 4.4% 4.0%
Price/yield 0.7% - 13.0% 8.5%
Debt securities in issue - 1,414 Discounted cash flows Credit spreads 0.05% - 2.0% 0.8%
Price/yield 6.2% - 14.8% 12.7%
Interest rate curves 3.5% - 4.4% 4.1%
Internal pricing model Equity-Equity correlation 44.9% - 100% 80.0%
Equity-FX correlation (36.4)% - 48.9% 5.0%
Option pricing model Bond option implied volatility 4.0% - 15% 12.5%
Short position - 180 Discounted cash flows Price/yield 5.9% - 12.7% 6.3%
Total 8,053 4,937
1 The ranges of values shown in the above table represent the highest and
lowest levels used in the valuation of the Group's Level 3 financial
instruments as at 31 December 2024. The ranges of values used are reflective
of the underlying characteristics of these Level 3 financial instruments based
on the market conditions at the balance sheet date. However, these ranges of
values may not represent the uncertainty in fair value measurements of the
Group's Level 3 financial instruments.
2 Weighted average for non-derivative financial instruments has been
calculated by weighting inputs by the relative fair value. Weighted average
for
derivatives has been provided by weighting inputs by the risk relevant to that
variable. N/A has been entered for the cases where weighted average is not a
meaningful indicator.
3 The inputs for Loans and advances to customers under Discounted Cash flow
technique have been split to show as a separate line under Comparable
pricing/yield for better representation of material inputs.
4 The inputs for equity shares under Comparable pricing/yield technique have
been consolidated under 'Price' as they are not individually material.
Page 53
The following section describes the significant unobservable inputs identified
in the valuation technique table:
• Comparable price/yield is a valuation methodology in which the price of
a comparable instrument is used to estimate the fair value where there are no
direct observable prices. Yield is the interest rate that is used to discount
the future cash flows in a discounted cash flow model. Valuation using
comparable instruments can be done by calculating an implied yield (or spread
over a liquid benchmark) from the price of a comparable instrument, then
adjusting that yield (or spread) to derive a value for the instrument. The
adjustment should account for relevant differences in the financial
instruments such as maturity and/or credit quality. Alternatively, a
price-to-price basis can be assumed between the comparable instrument and the
instrument being valued in order to establish the value of the instrument (for
example, deriving a fair value for a junior unsecured bond from the price of a
senior secured bond). An increase in price, in isolation, would result in a
favourable movement in the fair value of the asset. An increase in yield, in
isolation, would result in an unfavourable movement in the fair value of the
asset
• Correlation is the measure of how movement in one variable influences
the movement in another variable. An equity correlation is the correlation
between two equity instruments, an interest rate correlation refers to the
correlation between two swap rates, while commodity correlation is correlation
between two commodity underlying prices
• Commodity price curves is the term structure for forward rates over a
specified period
• Credit spread represents the additional yield that a market participant
would demand for taking exposure to the Credit Risk of an instrument
• Discount rate refers to the rate of return used to convert expected cash
flows into present value
• Equity-FX correlation is the correlation between equity instrument and
foreign exchange instrument
• EV/EBITDA multiple is the ratio of Enterprise Value (EV) to Earnings
Before Interest, Taxes, Depreciation and Amortisation (EBITDA). EV is the
aggregate market capitalisation and debt minus the cash and cash equivalents.
An increase in EV/EBITDA multiple will result in a favourable movement in the
fair value of the unlisted firm
• EV/Revenue multiple is the ratio of Enterprise Value (EV) to Revenue. An
increase in EV/Revenue multiple will result in a favourable movement in the
fair value of the unlisted firm
• Foreign exchange curves is the term structure for forward rates and swap
rates between currency pairs over a specified period
• Interest rate curves is the term structure of interest rates and
measures of future interest rates at a particular point in time
• Recovery rates is the expectation of the rate of return resulting from
the liquidation of a particular loan. As the probability of default increases
for a given instrument, the valuation of that instrument will increasingly
reflect its expected recovery level assuming default. An increase in the
recovery rate, in isolation, would result in a favourable movement in the fair
value of the loan
• Repo curve is the term structure of repo rates on repos and reverse
repos at a particular point in time
• Volatility represents an estimate of how much a particular instrument,
parameter or index will change in value over time. Generally, the higher the
volatility, the more expensive the option will be.
Page 54
Level 3 movement tables - financial assets
The table below analyses movements in Level 3 financial assets carried at fair
value.
Assets Held at fair value through profit or loss Investment securities
Loans and advances to banks Loans and advances to customers Reverse repurchase agreements and other similar secured lending Debt securities, alternative tier one and other eligible bills Equity Other Derivative financial Debt securities, alternative tier one and other eligible bills Equity Total
$million $million $million $million shares Assets instruments $million shares $million
$million $million $million $million
At 1 January 2025 - 1,937 3,239 1,593 191 - 128 - 965 8,053
Total gains/(losses) recognised in income statement - 70 (35) 123 (12) - (14) - - 132
Net trading income - 70 (35) 123 (12) - (14) - - 132
Other operating income - - - - - - - - - -
Total gains recognised in other comprehensive income (OCI) - - - - - - - - 321 321
Fair value through OCI reserve - - - - - - - - 316 316
Exchange difference - - - - - - - - 5 5
Purchases 299 3,002 10,555 1,980 169 - 162 - 31 16,198
Sales - (1,156) (9,021) (1,007) (31) - (128) - (150) (11,493)
Settlements - (184) (1,054) (6) - - (36) - - (1,280)
Transfers out(1) - (803) - (280) (7) - (23) - - (1,113)
Transfers in(2) - 598 - 921 - - 1 - - 1,520
At 31 December 2025 299 3,464 3,684 3,324 310 - 90 - 1,167 12,338
Recognised in the income statement(3) - (9) (3) 5 (29) - - - - (36)
At 1 January 2024 - 1,960 2,363 1,262 184 6 80 72 787 6,714
Total (losses)/gains recognised in income statement (1) 8 73 (114) (15) - (57) - - (106)
Net trading income (1) 8 73 (56) (15) - (57) - - (48)
Other operating income - - - (58) - - - - - (58)
Total (losses)/gains recognised in other comprehensive income (OCI) - - - - - - - (11) 50 39
Fair value through OCI reserve - - - - - - - - 74 74
Exchange difference - - - - - - - (11) (24) (35)
Purchases - 1,853 6,161 1,337 24 - 227 - 145 9,747
Sales - (2,062) (4,716) (907) (2) - (160) - (19) (7,866)
Settlements (7) (42) (782) - - - - - - (831)
Transfers out(1) (13) (263) - (1) - (6) (1) (61) (2) (347)
Transfers in(2) 21 483 140 16 - - 39 - 4 703
At 31 December 2024 - 1,937 3,239 1,593 191 - 128 - 965 8,053
Recognised in the income statement(3) - 7 1 7 (13) - (9) - - (7)
1 Transfers out includes loans and advances, debt securities, alternative
tier one and other eligible bills, equity shares, other assets and derivative
financial instruments where the valuation parameters became observable during
the period and were transferred to Level 1 and Level 2.
2 Transfers in primarily relate to loans and advances, repurchase
agreements, debt securities, alternative tier one and other eligible bills,
equity shares and derivative financial instruments where the valuation
parameters become unobservable during the year.
3 Represents Total unrealised (losses)/gains recognised in the income
statement, within net trading income, relating to change in fair value of
assets.
Page 55
Level 3 movement tables - financial liabilities
Deposits Customer Debt Derivative Short Other Total
accounts
by banks
securities financial positions liabilities $million
$million
$million in issue instruments $million $million
$million $million
At 1 January 2025 371 2,714 1,414 258 180 - 4,937
Total losses/(gains) recognised in income statement - net trading income 98 (269) 60 8 3 - (100)
Issues 298 5,410 2,114 538 - - 8,360
Settlements (538) (3,790) (2,462) (566) (107) - (7,463)
Transfers out(1) - (650) (58) (30) - - (738)
Transfers in(2) 40 63 16 18 - - 137
At 31 December 2025 269 3,478 1,084 226 76 - 5,133
Recognised in the income statement(3) 3 2 2 (9) - - (2)
At 1 January 2024 334 1,278 1,041 196 103 8 2,960
Total losses/(gains) recognised in income statement - net trading income 49 (27) 48 (6) 3 (8) 59
Issues 388 3,068 4,244 507 177 - 8,384
Settlements (400) (1,627) (2,795) (438) (103) - (5,363)
Transfers out(1) - (26) (1,194) (7) - - (1,227)
Transfers in(2) - 48 70 6 - - 124
At 31 December 2024 371 2,714 1,414 258 180 - 4,937
Recognised in the income statement(3) 29 5 2 (13) - - 23
1 Transfers out during the year primarily relate to customer accounts,
debt securities in issue and derivative financial instruments where the
valuation
parameters became observable during the year and were transferred to Level 2
financial liabilities.
2 Transfers in during the year primarily relate to customer accounts, debt
securities in issue and derivative financial instruments where the valuation
parameters become unobservable during the year.
3 Represents Total unrealised losses/(gains) recognised in the income
statement, within net trading income, relating to change in fair value of
liabilities.
Page 56
Sensitivities in respect of the fair values of Level 3 assets and liabilities
Sensitivity analysis is performed on products with significant unobservable
inputs. The Group applies a 10 per cent increase or decrease on the values of
these unobservable inputs, to generate a range of reasonably possible
alternative valuations. The percentage shift is determined by statistical
analysis performed on a set of reference prices based on the composition
of the Group's Level 3 inventory as the measurement date. Favourable and
unfavourable changes (which show the balance adjusted for input change) are
determined on the basis of changes in the value of the instrument as a result
of varying the levels of the unobservable parameters. The Level 3 sensitivity
analysis assumes a one-way market move and does not consider offsets for
hedges.
Held at fair value through profit or loss Fair value through other comprehensive income
Net exposure Favourable Unfavourable changes Net exposure Favourable Unfavourable changes
changes
changes
$million
$million $million
$million
$million $million
Financial instruments held at fair value
Loans and advances 3,763 3,854 3,650 - - -
Reverse Repurchase agreements and other similar secured lending 3,684 3,782 3,598 - - -
Debt securities, alternative tier one and other eligible bills 3,324 3,384 3,267 - - -
Equity shares 310 343 277 1,167 1,284 1,050
Derivative financial instruments (136) (111) (161) - - -
Customer accounts (3,478) (3,395) (3,566) - - -
Deposits by banks (269) (257) (282) - - -
Short positions (76) (75) (77) - - -
Debt securities in issue (1,084) (1,007) (1,161) - - -
At 31 December 2025 6,038 6,518 5,545 1,167 1,284 1,050
Financial instruments held at fair value
Loans and advances 1,937 1,985 1,862 - - -
Reverse Repurchase agreements and other similar secured lending 3,239 3,339 3,138 - - -
Debt securities, alternative tier one and other eligible bills 1,593 1,643 1,542 - - -
Equity shares 191 210 172 965 1,032 888
Derivative financial instruments (130) (115) (147) - - -
Customer accounts (2,714) (2,540) (2,883) - - -
Deposits by banks (371) (371) (371) - - -
Short positions (180) (178) (182) - - -
Debt securities in issue (1,414) (1,352) (1,476) - - -
At 31 December 2024 2,151 2,621 1,655 965 1,032 888
The reasonably possible alternatives could have increased or decreased the
fair values of financial instruments held at fair value through profit or loss
and those classified as fair value through other comprehensive income by the
amounts disclosed below.
Financial instruments Fair value changes
Possible increase Po
ss
ib
le
de
cr
ea
se
2025 2024 2025 2024
$million $million $million $million
Held at fair value through profit or loss 480 470 (493) (496)
Fair value through other comprehensive income 117 67 (117) (77)
14. Derivative financial instruments
Accounting policy
Fair values may be obtained from quoted market prices in active markets,
recent market transactions, and valuation techniques, including discounted
cash flow models and option pricing models, as appropriate. Where the
initially recognised fair value of a derivative contract is based on a
valuation model that uses inputs which are not observable in the market, it
follows the same initial recognition accounting policy as for other financial
assets and liabilities. All derivatives are carried as assets when fair value
is positive and as liabilities when fair value is negative.
Hedge accounting
Under certain conditions, the Group may designate a recognised asset or
liability, a firm commitment, highly probable forecast transaction or net
investment of a foreign operation into a formal hedge accounting relationship
with a derivative that has been entered to manage interest rate and/or foreign
exchange risks present in the hedged item. The Group has elected to continue
applying IAS 39 for hedge accounting.
Page 57
There are three categories of hedge relationships:
• Fair value hedge: to manage the fair value of interest rate and/or
foreign currency risks of recognised assets or liabilities or firm
commitments
• Cash flow hedge: to manage interest rate or foreign exchange risk of
highly probable future cash flows attributable to a recognised asset or
liability, or a forecasted transaction
• Net investment hedge: to manage the structural foreign exchange risk of
an investment in a foreign operation
The Group assesses, both at hedge inception and on a quarterly basis, whether
the derivatives designated in hedge relationships are highly effective in
offsetting changes in fair values or cash flows of hedged items. Hedges are
considered to be highly effective if all the following criteria are met:
• At inception of the hedge and throughout its life, the hedge is
prospectively expected to be highly effective in achieving offsetting changes
in fair value or cash flows attributable to the hedged risk
• Prospective and retrospective effectiveness of the hedge should be
within a range of 80-125%. This is tested using regression analysis
• This is tested using regression analysis where the slope of the
regression line must be between -0.80 and -1.25 and the data pairs between the
hedged item and the hedging instrument are regressed to a 95% confidence
interval. The regression co-efficient (R squared), which measures the
correlation between the variables in the regression, is at least 80%.
In the case of the hedge of a forecast transaction, the transaction must have
a high probability of occurring and must present an exposure to variations in
cash flows that are expected to affect reported profit or loss.
Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as
fair value hedging instruments are recorded in net trading income, together
with any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk. If the hedge no longer meets the criteria for
hedge accounting, the adjustment to the carrying amount of a hedged item for
which the effective interest method is used is amortised to the income
statement over the remaining term to maturity of the hedged item. If the
hedged item is sold or repaid, the unamortised fair value adjustment is
recognised immediately in the income statement. For financial assets
classified as fair value through other comprehensive income, the hedge
accounting adjustment attributable to the hedged risk is included in net
trading income to match the hedging derivative.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are
designated and qualify as cash flow hedging instruments are initially
recognised in other comprehensive income, accumulating in the cash flow hedge
reserve within equity. These amounts are subsequently recycled to the income
statement in the periods when the hedged item affects profit or loss. Both the
derivative fair value movement and any recycled amount are recorded in the
'Cashflow hedges' line item in other comprehensive income.
The Group assesses hedge effectiveness using the hypothetical derivative
method, which creates a derivative instrument to serve as a proxy for the
hedged transaction. The terms of the hypothetical derivative match the
critical terms of the hedged item and it has a fair value of zero at
inception. The hypothetical derivative and the actual derivative are regressed
to establish the statistical significance of the hedge relationship. Any
ineffective portion of the gain or loss on the hedging instrument is
recognised in the net trading income immediately.
If a cash flow hedge is discontinued, the amount accumulated in the cash flow
hedge reserve is released to the income statement as and when the hedged item
affects the income statement.
Should the Group consider the hedged future cash flows are no longer expected
to occur due to reasons, the cumulative gain or loss will be immediately
reclassified to profit or loss.
Net investment hedge
Hedges of net investments are accounted for in a similar manner to cash flow
hedges, with gains and losses arising on the effective portion of the hedges
recorded in the line 'Exchange differences on translation of foreign
operations' in other comprehensive income, accumulating in the translation
reserve within equity. These amounts remain in equity until the net investment
is disposed of. The ineffective portion of the hedges is recognised in the net
trading income immediately.
Page 58
The tables below analyse the notional principal amounts and the positive and
negative fair values of derivative financial instruments. Notional principal
amounts are the amounts of principal underlying the contract at the reporting
date.
Derivatives 2025 2024
Notional Assets Liabilities Notional Assets Liabilities
principal $million $million principal $million $million
amounts amounts
$million $million
Foreign exchange derivative contracts(1):
Forward foreign exchange contracts 5,793,024 42,581 42,554 4,923,991 54,913 51,128
Currency swaps and options 1,592,764 13,323 13,965 1,377,308 18,104 18,720
7,385,788 55,904 56,519 6,301,299 73,017 69,848
Interest rate derivative contracts:
Swaps 9,371,325 17,290 18,294 6,267,261 20,600 22,282
Forward rate agreements and options 325,419 1,674 994 294,705 2,233 2,771
9,696,744 18,964 19,288 6,561,966 22,833 25,053
Exchange traded futures and options 640,718 39 84 383,528 30 27
Credit derivative contracts 81,800 493 2,086 227,675 397 2,320
Equity and stock index options 22,078 336 482 10,678 351 194
Commodity derivative contracts 185,432 2,782 2,464 142,393 1,274 1,052
Gross total derivatives 18,012,560 78,518 80,923 13,627,539 97,902 98,494
Offset - (12,736) (12,719) - (16,430) (16,430)
Total derivatives 18,012,560 65,782 68,204 13,627,539 81,472 82,064
1 Foreign exchange derivative contracts include precious metals
derivatives.
The Group limits exposure to credit losses in the event of default by entering
into master netting agreements with certain market counterparties. As required
by IAS 32, exposures are only presented net in these accounts where they are
subject to legal right of offset and intended to be settled net in the
ordinary course of business.
The Group applies balance sheet offsetting only in the instance where we are
able to demonstrate legal enforceability of the right to offset (e.g. via
legal opinion) and the ability and intention to settle on a net basis (e.g.
via operational practice).
The Group may enter into economic hedges that do not qualify for IAS 39 hedge
accounting treatment, including derivative such as interest rate swaps,
interest rate futures and cross currency swaps to manage interest rate and
currency risks of the Group. These derivatives are measured at fair value,
with fair value changes recognised in net trading income: refer to Market
Risk.
Derivatives held for hedging
The Group enters into derivative contracts for the purpose of hedging interest
rate, currency and structural foreign exchange risks inherent in assets,
liabilities and forecast transactions. The table below summarises the notional
principal amounts and carrying values of derivatives designated in hedge
accounting relationships at the reporting date.
Included in the table below are derivatives held for hedging purposes as
follows:
2025 2024
Notional Assets Liabilities Notional Assets Liabilities
principal $million $million principal $million $million
amounts amounts
$million $million
Derivatives designated as fair value hedges:
Interest rate swaps 62,630 717 1,001 63,840 763 1,679
Currency swaps 1,954 92 - 1,035 - 56
64,584 809 1,001 64,875 763 1,735
Derivatives designated as cash flow hedges:
Interest rate swaps 63,247 300 78 49,309 165 282
Forward foreign exchange contracts 10,268 124 34 9,193 609 1
Currency swaps 3,904 86 22 14,305 729 2
77,419 510 134 72,807 1,503 285
Derivatives designated as net investment hedges:
Forward foreign exchange contracts 17,155 440 23 14,137 300 7
Total derivatives held for hedging 159,158 1,759 1,158 151,819 2,566 2,027
Page 59
Fair value hedges
The Group issues various long-term fixed-rate debt issuances that are measured
at amortised cost, including some denominated in foreign currency, such as
unsecured senior and subordinated debt (see Notes 22 and 27). The Group also
holds various fixed rate debt securities such as government and corporate
bonds, including some denominated in foreign currency (see Note 13). These
assets and liabilities held are exposed to changes in fair value due to
movements in market interest and foreign currency rates.
The Group uses interest rate swaps to exchange fixed rates for floating rates
on funding to match floating rates received on assets or exchange fixed rates
on assets to match floating rates paid on funding. The Group further uses
cross- currency swaps to match the currency of the issued debt or held asset
with that of the entity's functional currency.
Hedge ineffectiveness from fair value hedges is driven by cross-currency basis
risk and interest cashflows mismatch between the hedging instruments and
underlying hedged items. The amortisation of fair value hedge adjustments for
hedged items no longer designated is recognised in net interest income.
As at 31 December 2025 the Group held the following interest rate and cross
currency swaps as hedging instruments in fair value hedges of interest and
currency risk.
Hedging instruments and ineffectiveness
Interest rate(1) Notional Carrying Amount Change in fair Ineffectiveness recognised in
$million
value used to calculate hedge ineffectiveness(2) $million
profit or loss
$million
Asset Liability
$million
$million
Interest rate swaps - debt securities/subordinated 42,219 557 939 839 2
notes issued
Interest rate swaps - loans and advances to customers 531 - 5 (8) -
Interest rate swaps - debt securities and other eligible bills 19,880 160 57 (333) (9)
Interest and currency risk(1)
Cross currency swaps - debt securities/subordinated 1,954 92 - 141 -
notes issued
Cross currency swaps - debt securities and other eligible bills - - - - -
Total as at 31 December 2025 64,584 809 1,001 639 (7)
Interest rate swaps - debt securities/subordinated 46,832 283 1,643 46 2
notes issued
Interest rate swaps - loans and advances to customers 1,334 10 12 (5) -
Interest rate swaps - debt securities and other eligible bills 15,674 470 24 142 2
Interest and currency risk(1)
Cross currency swaps - debt securities/subordinated 1,035 - 56 (52) (1)
notes issued
Cross currency swaps - debt securities and other eligible bills - - - (10) -
Total as at 31 December 2024 64,875 763 1,735 121 3
1 Interest rate swaps are designated in hedges of the fair value of
interest rate risk attributable to the hedged item. Cross currency swaps are
used to hedge both interest rate and currency risks. All the hedging
instruments are derivatives, with changes in fair value including hedge
ineffectiveness recorded within net trading income.
2 This represents a (loss)/gains change in fair value used for calculating
hedge ineffectiveness.
Hedged items in fair value hedges
Carrying Amount Accumulated amount of fair value hedge Change in fair Cumulative
adjustments included in the carrying amount
value used to calculate hedge ineffectiveness(1) $million
balance of fair
value adjustments from de-
designated hedge relationships(2)
$million
Asset Liability Asset Liability
$million
$million
$million
$million
Debt securities / subordinated notes issued - 43,968 - 546 (978) 252
Debt securities and other eligible bills 19,834 - (57) - 324 82
Loans and advances to customers 536 - 5 - 8 -
Total as at 31 December 2025 20,370 43,968 (52) 546 (646) 334
Debt securities / subordinated notes issued - 49,616 - 1,485 7 178
Debt securities and other eligible bills 15,183 - (353) - (130) 235
Loans and advances to customers 1,330 - (4) - 5 4
Total as at 31 December 2024 16,513 49,616 (357) 1,485 (118) 417
1 This represents a gain/(loss) change in fair value used for calculating
hedge ineffectiveness.
2 This represents a credit/(debit) to the balance sheet value.
Page 60
Income statement impact of fair value hedges
2025 2024
$million $million
Change in fair value of hedging instruments 639 121
Change in fair value of hedged risks attributable to hedged items (646) (118)
Net ineffectiveness (loss)/gain to net trading income (7) 3
Amortisation gain to net interest income 27 153
Cash flow hedges
The Group has exposure to market movements in future interest cash flows on
portfolios of customer accounts, debt securities and loans and advances to
customers. The amounts and timing of future cash flows, representing both
principal and interest flows, are projected on the basis of contractual terms
and other relevant factors, including estimates of prepayments and defaults.
The hedging strategy of the Group involves using interest rate swaps to manage
the variability in future cash flows on assets and liabilities that have
floating rates of interest by exchanging the floating rates for fixed rates.
It also uses foreign exchange contracts and currency swaps to manage the
variability in future exchange rates on its assets and liabilities and costs
in foreign currencies. This is done on both a micro basis whereby a single
interest rate or cross-currency swap is designated in a separate relationship
with a single hedged item (such as a floating-rate loan to a customer), and on
a portfolio basis whereby each hedging instrument is designated against a
group of hedged items that share the same risk (such as a group of customer
accounts). Hedge ineffectiveness for cash flow hedges is mainly driven by
reset frequency and payment mismatch between the hedging instrument and the
underlying hedged item.
The hedged risk is determined as the variability of future cash flows arising
from changes in the designated benchmark interest and/or foreign exchange
rates.
Hedging instruments and ineffectiveness
Notional Carrying Amount Change in fair Gain recognised in OCI Ineffectiveness
$million
value used to calculate hedge ineffectiveness(1) $million
$million
gain/(loss)
recognised in
net trading
income
$million
Asset Liability
$million
$million
Interest rate risk
Interest rate swaps 63,247 300 78 412 404 8
Currency risk
Forward foreign exchange contract 10,268 124 34 (5) (4) (1)
Cross currency swaps 3,904 86 22 (377) (379) 2
Total as at 31 December 2025 77,419 510 134 30 21 9
Interest rate risk
Interest rate swaps 49,309 165 282 (131) (125) (6)
Currency risk
Forward foreign exchange contract 9,193 609 1 45 45 -
Cross currency swaps 14,305 729 2 650 648 2
Total as at 31 December 2024 72,807 1,503 285 564 568 (4)
1 This represents a gain/(loss) change in fair value used for calculating
hedge ineffectiveness.
Hedged items in cash flow hedges
2025 2024
Change in fair Cash flow hedge reserve Cumulative Change in fair Cash flow hedge reserve Cumulative
value used for calculating hedge ineffectiveness(1)
balance in the cash flow hedge reserve from de-designated hedge relationships
value used for calculating hedge ineffectiveness(1)
balance in the cash flow hedge reserve from de-designated hedge relationships
$million
$million
$million $million $million $million
Customer accounts 122 (1) 78 (199) (38) 104
Debt securities and other eligible bills 122 4 - (354) (10) (5)
Loans and advances to customers (379) 243 61 124 (27) (7)
Intragroup lending currency hedge 38 2 - (55) (2) -
Intragroup borrowing currency hedge 76 - - (84) 4 -
Total as at 31 December (21) 248 139 (568) (73) 92
1 This represents a gain/(loss) change in fair value used for calculating
hedge ineffectiveness.
Page 61
Impact of cash flow hedges on profit and loss and other comprehensive income
2025 2024
$million $million
Cash flow hedge reserve balance as at 1 January 4 91
Gain recognised in other comprehensive income on effective portion of changes 21 568
in fair value of hedging instruments
Loss/(Gain) reclassified to income statement when hedged item affected net 347 (669)
profit
Taxation charge relating to cash flow hedges (57) 14
Cash flow hedge reserve balance as at 31 December 315 4
Net investment hedges
Foreign currency exposures arise from investments in subsidiaries that have a
different functional currency from that of the presentation currency of the
parent. This risk arises from the fluctuation in spot exchange rates between
the functional currency of the subsidiaries and the parent's functional
currency, which causes the value of the investment to vary.
The Group's policy is to hedge these exposures only when not doing so would be
expected to have a significant impact on the regulatory ratios of the Group
and its banking subsidiaries. The Group uses foreign exchange forwards to
manage the effect of exchange rates on its net investments in foreign
subsidiaries.
Derivative forward currency contracts¹ Notional Carrying Amount Change in fair Changes in the Ineffectiveness recognised in Amount
$million
value used to calculate hedge ineffectiveness(2) $million
value of the
profit or loss
reclassified from reserves to income
hedging
instrument recognised in OCI $million $million
$million
Asset Liability
$million
$million
As at 31 December 2025 17,155 440 23 129 129 - -
As at 31 December 2024 14,137 300 7 678 678 - -
1 These derivative forward currency contracts have a maturity of less than
one year. The hedges are rolled on a periodic basis.
2 This represents a gain/(loss) change in fair value used for calculating
hedge ineffectiveness.
Hedged items in net investment hedges
2025 2024
Change in fair Translation Balances Change in the Translation Balances
value used for calculating hedge
remaining in the translation reserve from hedging relationships for which
value used for calculating hedge
remaining in the translation reserve from hedging relationships for
reserve(2) hedge accounting is no longer applied
reserve(2)
which hedge accounting is no longer applied
ineffectiveness(1)
ineffectiveness(1)
$million $million
$million $million
$million $million
Net investments (129) 417 - (678) 293 -
1 This represents a gain/(loss) change in fair value used for calculating
hedge ineffectiveness.
2 This represents the mark-to-market including accrued interest on live
hedges at 31 December.
Impact of net investment hedges on other comprehensive income
2025 2024
$million $million
Gains recognised in other comprehensive income 129 678
Page 62
Maturity of hedging instruments
2025 2024
Fair value hedges Less than More than One to five years More than Less than More than One to five years More than
one month and less than
five years
one month and less than
five years
one month
one year one month
one year
Interest rate swap
Notional $million 1,820 9,387 35,179 16,244 2,763 11,260 32,030 17,787
Cross currency swap
Notional $million - - 1,954 - - - 1,035 -
Average fixed interest rate (to USD) (%) EUR - - 2.26 - - - 2.40 -
Average exchange rate EUR/USD - - 0.89 - - - 0.91 -
Cash flow hedges
Interest rate swap
Notional $million 1,544 17,021 41,054 3,628 2,428 15,589 25,943 5,349
Average fixed interest rate (%) USD 4.09 4.09 3.61 3.69 5.09 4.62 4.05 3.74
Cross currency swap
Notional $million 622 2,568 714 - 880 12,232 1,193 -
Average fixed interest rate (%) HKD 4.11 3.14 0.21 - - 4.07 0.21 -
KRO 2.62 2.44 - - - 2.85 - -
JPY/HKD - - - - - (0.05) - -
TWO 1.07 1.35 1.38 - 0.53 1.04 - -
CNO - - - - 2.45 1.54 - -
JPY - - - - 0.01 0.08 - -
Average exchange rate HKD/USD 7.77 7.78 7.85 - - 7.78 7.85 -
KRO/USD 1,454.00 1,446.78 1,300.90 - - 1,386.94 1,300.90 -
TWO/USD 31.91 29.97 29.42 - 31.83 32.22 - -
CNO/USD - - - - 7.18 7.20 - -
JPY/HKD - - - - - 18.12 - -
Forward foreign exchange contracts
Notional $million 1,736 8,236 296 - 2,044 7,149 - -
Average exchange rate BRL/USD - - - - - 6.54 - -
HKD/USD 7.77 7.77 7.85 - - - -
JPY/USD 153.02 148.53 - - 147.38 145.65 - -
Net investment hedges
Foreign exchange derivatives
Notional $million 17,126 29 - - 14,137 - - -
Average exchange rate CNY/USD 7.07 - - - 7.13 - - -
KRW/USD 1,358.41 - - - 1,364.97 - - -
HKD/USD 7.77 - - - 7.77 - - -
INR/USD 86.63 - - - 84.07 - - -
Page 63
15. Loans and advances to banks and customers
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy.
2025 2024
$million $million
Loans and advances to banks 43,915 43,609
Expected credit loss (14) (16)
43,901 43,593
Loans and advances to customers 290,849 285,936
Expected credit loss (4,061) (4,904)
286,788 281,032
Total loans and advances to banks and customers(1) 330,689 324,625
1 Includes $2.9 billion (31 December 2024: $2.5 billion) of assets pledged
as collateral. For more information, please refer to Pillar 3 disclosures.
Analysis of loans and advances to customers by geographies and client segment
together with their related impairment provisions are set out within the Risk
review and Capital review.
16. Reverse repurchase and repurchase agreements including other similar
lending and borrowing
Accounting policy
The Group purchases securities (a reverse repurchase agreement - 'reverse
repo') typically with financial institutions subject to a commitment to resell
or return the securities at a predetermined price. These securities are not
included in the balance sheet as the Group does not acquire the risks and
rewards of ownership, however they are recorded off-balance sheet as
collateral received. Consideration paid (or cash collateral provided) is
accounted for as a loan asset at amortised cost unless it is managed on a fair
value basis or designated at fair value through profit or loss. In the
majority of cases through the contractual terms of a reverse repo arrangement,
the Group as the transferee of the security collateral has the right to
sell or repledge the asset concerned.
The Group also sells securities (a repurchase agreement - 'repo') subject to a
commitment to repurchase or redeem the securities at a predetermined price.
The securities are retained on the balance sheet as the Group retains
substantially all the risks and rewards of ownership and these securities are
disclosed as pledged collateral. Consideration received (or cash collateral
received) is accounted for as a financial liability at amortised cost unless
it is either mandatorily classified as fair value through profit or loss or
irrevocably designated at fair value through profit or loss at initial
recognition.
Repo and reverse repo transactions typically entitle the Group and its
counterparties to have recourse to assets similar to those provided as
collateral in the event of a default. Securities sold subject to repos, either
by way of a Global Master Repurchase Agreement (GMRA), or through a securities
sale and Total Return Swap (TRS) continue to be recognised on the balance
sheet as the Group retains substantially the associated risks and rewards of
the securities (the TRS is not recognised). Assets sold under repurchase
agreements are considered encumbered as the Group cannot pledge these
to obtain funding
Reverse repurchase agreements and other similar secured lending
2025 2024
$million $million
Banks 37,412 37,700
Customers 58,684 61,101
96,096 98,801
Of which:
Fair value through profit or loss 84,130 86,195
Banks 33,688 34,754
Customers 50,442 51,441
Held at amortised cost 11,966 12,606
Banks 3,724 2,946
Customers 8,242 9,660
Page 64
Under reverse repurchase and securities borrowing arrangements, the Group
obtains securities under usual and customary terms which permit it to repledge
or resell the securities to others. Amounts on such terms are:
2025 2024
$million $million
Securities and collateral received (at fair value) 101,260 103,007
Securities and collateral which can be repledged or sold (at fair value) 98,384 102,741
Amounts repledged/transferred to others for financing activities, to satisfy 18,173 27,708
liabilities under sale and repurchase agreements (at fair value)
Repurchase agreements and other similar secured borrowing
2025 2024
$million $million
Banks 8,465 8,669
Customers 35,599 37,002
44,064 45,671
Of which:
Fair value through profit or loss 36,307 33,539
Banks 6,560 7,759
Customers 29,747 25,780
Held at amortised cost 7,757 12,132
Banks 1,905 910
Customers 5,852 11,222
The tables below set out the financial assets provided as collateral for
repurchase and other secured borrowing transactions:
Fair value Fair value Amortised Off-balance Total
through through other comprehensive income cost sheet $million
profit or loss $million $million $million
$million
On-balance sheet
Debt securities and other eligible bills 6,345 11,272 10,046 - 27,663
Off-balance sheet
Repledged collateral received - - - 18,173 18,173
At 31 December 2025 6,345 11,272 10,046 18,173 45,836
On-balance sheet
Debt securities and other eligible bills 4,698 6,366 7,592 - 18,656
Off-balance sheet
Repledged collateral received - - - 27,708 27,708
At 31 December 2024 4,698 6,366 7,592 27,708 46,364
17. Goodwill and intangible assets
Accounting policy
Goodwill
Goodwill on acquisitions of subsidiaries is included in intangible assets.
Goodwill on acquisitions of associates is included in Investments in
associates and joint ventures. Goodwill included in intangible assets is
assessed at each balance sheet date for impairment and carried at cost less
any accumulated impairment losses. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
Detailed calculations are performed based on forecasting expected cash flows
of the relevant cash generating units (CGUs) and discounting these at an
appropriate discount rate, the determination of which requires the exercise
of judgement. Goodwill is allocated to CGUs for the purpose of impairment
testing. CGUs represent the lowest level within the Group which generate
separate cash inflows and at which the goodwill is monitored for internal
management purposes. These are equal to or smaller than the Group's reportable
segments (as set out in Note 2) as the Group views its reportable segments on
a global basis. The major CGUs to which goodwill has been allocated are set
out in the CGU table.
Other accounting estimates and judgements
The carrying amount of goodwill is based on the application of judgements
including the basis of goodwill impairment calculation assumptions. Judgement
is also applied in determination of CGUs.
Estimates include forecasts used for determining cash flows for CGUs, the
appropriate long-term growth rates to use and discount rates which factor in
country risk-free rates and applicable risk premiums. The Group undertakes an
annual assessment to evaluate whether the carrying value of goodwill is
impaired. The estimation of future cash flows and the level to which they are
discounted is inherently uncertain and requires significant judgement and is
subject to potential change over time.
Page 65
Acquired intangibles
At the date of acquisition of a subsidiary or associate, intangible assets
which are deemed separable and that arise from contractual or other legal
rights are capitalised and included within the net identifiable assets
acquired. These intangible assets are initially measured at fair value, which
reflects market expectations of the probability that the future economic
benefits embodied in the asset will flow to the entity and are amortised on
the basis of their expected useful lives (4 to 16 years). At each balance
sheet date, these assets are assessed for indicators of impairment. In the
event that an asset's carrying amount is determined to be greater than its
recoverable amount, the asset is written down immediately to the recoverable
amount.
Computer software
Acquired computer software licences are capitalised on the basis of the costs
incurred to acquire and bring to use the specific software.
Internally generated software represents substantially all of the total
software capitalised. Direct costs of the development of separately
identifiable internally generated software are capitalised where it is
probable that future economic benefits attributable to the software will flow
from its use. These costs include staff remuneration costs such as salaries,
statutory payments and share-based payments, materials, service providers and
contractors provided their time is directly attributable to the software
build. Costs incurred in the ongoing maintenance of software are expensed
immediately when incurred. Internally generated software is amortised over
each asset's useful life to a maximum of 10 years. On an annual basis residual
values and useful lives of software assets, including software under
development, are reviewed, including assessing for indicators of impairment.
Indicators of impairment include loss of business relevance, obsolescence,
exit of the business to which the software relates, technological changes,
change in use of the asset, reduction in useful life, plans to reduce usage or
scope.
For capitalised software that is internally generated, judgement is required
to determine which costs relate to research (expensed) and which costs relate
to development (capitalised). Further judgement is required to determine the
technical feasibility of completing the software such that it will be
available for use. Estimates are used to determine how the software will
generate probable future economic benefits: these estimates include cost
savings, income increases, balance sheet improvements, improved functionality
or improved asset safeguarding.
Software as a Service (SaaS) and similar cloud service models is a contractual
arrangement that conveys the right to receive access to the supplier's
software application over the contract term. As such, the Group does not have
control and as a result recognises an operating expense for these costs over
the contract term.
Certain costs, including customisation costs related to implementation of the
SaaS may meet the definition of an intangible asset in their own right if it
is separately identifiable and control is established. These costs are
capitalised if it is expected to provide the Group with future economic
benefits flowing from the underlying resource and the Group can restrict
others from accessing those benefits.
2025 2024
Goodwill Acquired intangibles Computer software Total Goodwill Acquired intangibles Computer software Total
$million $million $million $million $million $million $million $million
Cost
At 1 January 2,387 252 6,301 8,940 2,429 278 6,168 8,875
Exchange translation differences 32 6 225 263 (42) (18) (109) (169)
Additions 4 1 1,032 1,037 - 1 952 953
Disposals - - (13) (13) - - (5) (5)
Impairment - - (121)¹ (121) - - (663)(1,2) (663)
Amounts written off - - (21) (21) - (9) (42) (51)
At 31 December 2,423 259 7,403 10,085 2,387 252 6,301 8,940
Provision for amortisation
At 1 January - 249 2,900 3,149 - 265 2,396 2,661
Exchange translation differences - 4 115 119 - (20) (48) (68)
Amortisation - 2 687 689 - 4 695 699
Impairment charge - - (76)¹ (76) - - (102)(1,2) (102)
Disposals - - (6) (6) - - - -
Amounts written off - - (21) (21) - - (41) (41)
At 31 December - 255 3,599 3,854 - 249 2,900 3,149
Net book value 2,423 4 3,804 6,231 2,387 3 3,401 5,791
1 The Group has performed its annual review of computer software
intangibles to determine instances when carrying value is greater than its
recoverable amount and impaired $45 million (31 December 2024: $78 million).
2 During 2024, the Group performed a review of its computer software
intangibles which were capitalised as at 31 December 2023, and impaired $483
million of the 2024 net book value due to limitations in the available
evidence to support the continued capitalisation of the assets.
At 31 December 2025, accumulated goodwill impairment losses incurred from 1
January 2005 amounted to $3,331 million (31 December 2024: $3,331 million),
of which $nil was recognised in 2025 (31 December 2024: $nil).
CGU structure
When considering the generation of independent cash inflows and appropriate
level of management, Corporate & Investment Banking and Wealth Management
are managed on a global basis, while Retail Banking and others including
Treasury Market activities are managed on a country basis.
Page 66
Outcome of impairment assessment
An annual assessment is made as to whether the current carrying value of
goodwill is impaired. For the purposes of impairment testing, goodwill is
allocated at the date of acquisition to a CGU. Goodwill is considered to be
impaired if the carrying amount of the relevant CGU exceeds its recoverable
amount. Indicators of impairment include changes in the economic performance
and outlook of the region including geopolitical changes, changes in market
value of regional investments, large credit defaults and strategic decisions
to exit certain regions.
The recoverable amounts for all the CGUs were measured based on value in use
(VIU). The calculation of VIU for each CGU is calculated using five-year
cashflow projections and an estimated terminal value based on a perpetuity
value after year five. The cashflow projections are based on forecasts
approved by management up to 2030.
The perpetuity terminal value amount is calculated using year five cashflows
using long-term GDP growth rates. All cashflows are discounted using discount
rates which reflect market rates appropriate to the CGU.
The goodwill allocated to material CGUs and key assumptions used in
determining the recoverable amounts are set out below and are solely estimates
for the purposes of assessing impairment of acquired goodwill.
Cash generating unit(1) 2025 2024
Goodwill Pre Tax Long-term Goodwill Pre Tax Long-term
forecast GDP growth rates
forecast GDP
$million Discount rates
$million Discount rates
growth rates
per cent
per cent per cent per cent
Country CGUs
Asia 1,036 1,014
Hong Kong 358 13.0 1.0 359 13.0 1.1
Taiwan 327 12.2 1.3 316 12.2 1.5
Singapore 351 13.1 2.0 339 13.0 2.3
Africa & Middle East 80 81
Pakistan 31 33.9 2.5 32 35.9 3.3
Bahrain 49 16.1 1.0 49 12.4 0.8
Global CGUs 1,303 1,292
Wealth Management 83 15.1 1.6 83 15.0 1.8
Corporate & Investment Banking 1,220 15.9 2.1 1,209 15.5 2.3
2,419 2,387
1 Excludes other goodwill balances of $4 million.
In the current year, there are no CGUs for which reasonably possible changes
on key estimates (cashflow, discount rate and GDP growth) would cause an
impairment.
Page 67
18. Property, plant and equipment
Accounting policy
All property, plant and equipment is stated at cost less accumulated
depreciation and impairment losses.
Land and buildings comprise mainly branches and offices. Freehold land is not
depreciated although it is subject to impairment testing.
Depreciation on other assets is calculated using the straight-line method to
allocate their cost to their residual values over their estimated useful
lives, as follows:
• Owned premises • up to 50 years
• Leasehold premises • up to 50 years
• Leasehold improvements • Shorter of remaining lease term and 10 years
• Equipment and motor vehicles • three to 15 years
Where the Group is a lessee of a right-of-use asset, the leased assets are
capitalised and included in Property, plant and equipment with a corresponding
liability to the lessor recognised in other liabilities. The accounting policy
for lease assets is set out in Note 19.
2025 2024
Premises Equipment Leased Leased Total Premises Equipment Leased Leased Total
$million $million premises equipment assets $million $million $million premises equipment assets $million
assets $million assets $million
$million $million
Cost or valuation
At 1 January 1,726 936 2,026 163 4,851 1,741 810 1,864 18 4,433
Exchange translation differences 26 33 39 (1) 97 (41) (31) (38) (4) (114)
Additions 133(1) 187(1) 253 56 629 112(1) 194(1) 213 150 669
Disposals and fully depreciated assets written off (29)(2) (54)(2) (54) (1) (138) (61)(2) (37)(2) (13) (1) (112)
Transfers to assets held for sale (43) - - - (43) - - - - -
Other movements(3) (9) - - - (9) (25) - - - (25)
As at 31 December 1,804 1,102 2,264 217 5,387 1,726 936 2,026 163 4,851
Depreciation
Accumulated at 1 January 716 575 1,096 39 2,426 692 535 914 18 2,159
Exchange translation differences 13 30 3 (3) 43 (28) (15) (40) (14) (97)
Charge for the year 87 114 228 52 481 79 92 220 36 427
Impairment charge (1) - 1 - - 2 - 9 - 11
Attributable to assets sold, transferred or written off (19)(2) (53)(2) (34) (1) (107) (29)(2) (37)(2) (7) (1) (74)
Transfers to assets held for sale (15) - - - (15) - - - - -
Accumulated at 31 December 781 666 1,294 87 2,828 716 575 1,096 39 2,426
Net book amount at 31 December 1,023 436 970 130 2,559 1,010 361 930 124 2,425
1 Refer to the cash flow statement under cash flows from investing
activities section for the purchase of property, plant and equipment during
the year of $320 million (31 December 2024: $456 million).
2 In the cash flow statement, disposals of property, plant and equipment of
$30 million (31 December 2024: $56 million) would include the gains/(losses)
incurred as part of other operating income (note 6) on disposal of assets
during the year and the net book value disposed.
3 Includes revaluation surplus on initial measurement $5 million (31
December 2024: $25 million) recognised in statement of other comprehensive
income and subsequent re-measurement $14 million (31 December 2024: nil) taken
to income statement.
19. Leased assets
Accounting policy
Where the Group is a lessee and the lease is deemed in scope of IFRS 16, it
recognises a liability equal to the present value of lease payments over the
lease term, discounted using the incremental borrowing rate applicable in the
economic environment of the lease. The liability is recognised in 'Other
liabilities'. A corresponding right-of-use asset equal to the liability,
adjusted for any lease payments made at or before the commencement date, is
recognised in 'Property, plant and equipment'. The lease term includes any
extension options contained in the contract that the Group is reasonably
certain it will exercise.
The Group subsequently depreciates the right-of-use asset using the
straight-line method over the lease term and measures the lease liability
using the effective interest method. Depreciation on the asset is recognised
in 'Depreciation and amortisation', and interest on the lease liability is
recognised in 'Interest expense'.
If a leased premise, or a physically distinct portion of a premise such as an
individual floor, is deemed by management to be surplus to the Group's needs
and action has been taken to abandon the space before the lease expires, this
is considered an indicator of impairment. An impairment loss is recognised if
the right-of-use asset, or portion thereof, has a carrying value in excess of
its value-in-use when taking into account factors such as the ability and
likelihood of obtaining a subtenant.
Page 68
The key judgement in determining lease balances is the determination of the
lease term, in particular whether the Group is reasonably certain that it
will exercise extension options present in lease contracts. On initial
recognition, the Group considers a range of characteristics such as premises
function, regional trends and the term remaining on the lease to determine
whether it is reasonably certain that a contractual right to extend a lease
will be exercised. When there are changes to assumptions the lease balances
are remeasured.
The estimates involved are the determination of incremental borrowing rates in
the respective economic environments. The Group uses third-party broker
quotes to estimate its USD cost of senior unsecured borrowing, then uses cross
currency swap pricing information to determine the equivalent cost of
borrowing in other currencies. If it is not possible to estimate
an incremental borrowing rate through this process, other proxies such as
local government bond yields are used.
The Group primarily enters lease contracts that grant it the right to use
premises such as office buildings and retail branches.
Existing lease liabilities may change in future periods due to changes in
assumptions or decisions to exercise lease renewal or termination options,
changes in payments due to renegotiations of market rental rates as permitted
by those contracts and changes to payments due to rent being contractually
linked to an inflation index. In general the re-measurement of a lease
liability under these circumstances leads to an equal change to the
right-of-use asset balance, with no immediate effect on the income statement.
The total cash outflow during the year for premises and equipment leases was
$268 million (2024: $265 million).
The right-of-use asset balances and depreciation charges are disclosed in Note
18. The lease liability balances are disclosed in Note 23 and the interest
expense on lease liabilities is disclosed in Note 3.
Maturity analysis
The maturity profile for lease liabilities associated with leased premises and
equipment assets is as follows:
2025 2024
One year Between Between More than five years Total One year Between Between More than five years Total
or less one year two years $million $million or less one year two years $million $million
$million and two and five $million and two and five
years years years years
$million $million $million $million
Other liabilities - lease liabilities 292 245 483 450 1,470 279 223 443 414 1,359
20. Other assets
Other assets include: 2025 2024
$million $million
Financial assets held at amortised cost (Note 13):
Hong Kong SAR Government certificates of indebtedness (Note 23)(1) 6,448 6,369
Cash collateral(3) 12,868 11,046
Acceptances and endorsements 6,561 5,476
Unsettled trades and other financial assets 10,893 11,694
36,770 34,585
Non-financial assets:
Commodities and emissions certificates(2) 30,619 8,358
Other assets 542 525
67,931 43,468
1 The Hong Kong SAR Government certificates of indebtedness are
subordinated to the claims of other parties in respect of bank notes issued.
2 Comprises precious metals and emission certificates, being inventory that
is carried at fair value less costs to sell. $25.1 billion is precious metals
which are classified as Level 1, the fair value of which being derived from
observable spot or short-term futures prices from relevant exchanges (31
December 2024: $5.6 billion). $5.5 billion is emissions certificates and other
commodity related balances classified as Level 2 (31 December 2024: $2.7
billion).
3 Cash collateral are margins placed to collateralise net derivative
mark-to-market (MTM) positions.
Page 69
21. Assets held for sale and associated liabilities
Accounting Policy
Upon reclassification property, plant and equipment are measured at the lower
of their carrying amount and fair value less costs to sell. Financial
instruments continue to be measured per the accounting policies in Note 13
Financial instruments.
The assets below have been presented as held for sale following the approval
of Group management and the transactions are expected to complete in 2026.
Assets held for sale
The financial assets reported below are classified under Level 1: $74 million
(2024: $58 million), Level 2: $178 million (2024: $353 million) and Level 3:
$790 million (2024: $473 million).
2025 2024
$million $million
Financial assets held at fair value through profit or loss - 5
Loans and advances to banks - 5
Financial assets held at amortised cost 1,042 884
Cash and balances at central banks - 109
Loans and advances to banks - 18
Loans and advances to customers 1,042 656
Debt securities held at amortised cost - 101
Property, plant and equipment(1) 32 15
Others 25 28
1,099 932
1 Consideration on disposal of Property, plant and equipment classified
under assets held for sale was $128 million (31 December 2024: $53 million).
Liabilities held for sale
The financial liabilities reported below are classified under Level 1: $147
million (2024: $89 million) and Level 2: $761 million (2024: $271 million).
2025 2024
$million $million
Financial liabilities held at amortised cost 908 360
Customer accounts 908 360
Other liabilities 6 16
Provisions for liabilities and charges - 5
914 381
The amounts included in the tables above include $741 million of assets and
$914 million of liabilities forming part of the Botswana, Uganda, Zambia and
Sri Lanka WRB businesses transferred to held for sale during the year.
22. Debt securities in issue
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy.
2025 2024
Certificates of Other debt Total Certificates of Other debt Total
deposit of securities $million deposit of securities $million
$100,000 in issue $100,000 in issue
or more $million or more $million
$million $million
Debt securities in issue 21,876 50,982 72,858 18,113 46,496 64,609
Debt securities in issue included within:
Financial liabilities held at fair value through profit or loss (Note13) - 16,009 16,009 - 13,731 13,731
Total debt securities in issue 21,876 66,991 88,867 18,113 60,227 78,340
Page 70
In 2025, the Company issued a total of $7.9 billion senior notes for general
business purposes of the Group as shown below:
Securities $million
$1,000 million fixed rate senior notes due 2029 (callable 2028) 1,000
$1,000 million fixed rate senior notes due 2036 (callable 2035) 1,000
$500 million floating rate senior notes due 2029 (callable 2028) 500
HKD 1,250 million fixed rate senior notes due 2029 (callable 2028) 161
EUR 1,000 million fixed rate senior notes due 2033 (callable 2032) 1,174
$1,000 million fixed rate senior notes due 2031 (callable 2030) 1,000
$750 million floating rate senior notes due 2031 (callable 2030) 750
$2,000 million fixed rate senior notes due 2036 (callable 2035) 2,000
HKD 1,500 million fixed rate senior notes due 2029 (callable 2028) 193
$50 million fixed rate senior notes due 2029 (callable 2028) 50
CNY 500 million fixed rate senior notes due 2030 (callable 2029) 70
CNY 400 million fixed rate senior notes due 2030 (callable 2029) 56
Total Senior Notes issued 7,954
In 2024, the Company issued a total of $7.4 billion senior notes for general
business purposes of the Group as shown below:
Securities $million
$1,500 million fixed-rate senior notes due 2035 (callable 2034) 1,500
SGD 335 million fixed-rate senior notes due 2030 (callable 2029) 246
EUR 1,000 million fixed-rate senior notes due 2032 (callable 2031) 1,035
HKD 1,100 million fixed-rate senior notes due 2027 (callable 2026) 142
$500 million floating-rate senior notes due 2028 (callable 2027) 500
$1,000 million fixed-rate senior notes due 2028 (callable 2027) 1,000
$1,500 million fixed-rate senior notes due 2035 (callable 2034) 1,500
$1,500 million fixed-rate senior notes due 2030 (callable 2029) 1,500
Total Senior Notes issued 7,423
23. Other liabilities
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy for
financial liabilities, Note 19 Leased assets for the accounting policy for
leases, and Note 31 Share-based payments for the accounting policy for
cash-settled share-based payments.
2025 2024
$million $million
Financial liabilities held at amortised cost (Note 13)
Notes in circulation(1) 6,448 6,369
Acceptances and endorsements 6,567 5,476
Cash collateral(2) 14,168 15,005
Property leases 1,097 1,041
Equipment leases 121 115
Unsettled trades and other financial liabilities 17,387 16,041
45,788 44,047
Non-financial liabilities
Cash-settled share-based payments 247 131
Other liabilities 620 503
46,655 44,681
1 Hong Kong currency notes in circulation of $6,448 million (31 December
2024: $6,369 million) that are secured by the Government of Hong Kong SAR
certificates of indebtedness of the same amount included in other assets
(Note 20).
2 Cash collateral are margins received against collateralise net derivative
mark-to-market positions.
Page 71
24. Provisions for liabilities and charges
Accounting policy
The recognition and measurement of provisions for liabilities and charges
requires significant judgement and the use of estimates about uncertain future
conditions or events.
Estimates include the best estimate of the probability of outflow of economic
resources, cost of settling a provision and timing of settlement. Judgement is
required to assess inherently uncertain areas such as the anticipated outcome
and financial impact of legal claims and regulatory and enforcement
investigations and proceedings.
2025 2024
Provision Other Total Provision Other Total
for credit provisions(2) $million for credit provisions(2) $million
commitments(1) $million commitments(1) $million
$million $million
At 1 January 255 94 349 227 72 299
Exchange translation differences (7) - (7) 10 (5) 5
(Release)/charge against profit (24) 130 106 18 136 154
Provisions utilised - (47) (47) - (121) (121)
Other movements(3) - - - - 12 12
At 31 December 224 177 401 255 94 349
1 Expected credit loss for credit commitment comprises those undrawn
contractually committed facilities where there is doubt as to the borrowers'
ability to meet their repayment obligations.
2 Other provisions consist mainly of provisions for legal claims and
regulatory and enforcement investigations and proceedings; including provision
for Korea equity-linked securities (ELS) portfolio. While a provision has been
made in relation to the Korea ELS matter, a description of the matter is
contained in note 26.
3 Includes the provisions transferred to held for sale.
25. Contingent liabilities and commitments
Accounting policy
Financial guarantee contracts and loan commitments
Financial guarantee contracts and any loan commitments issued at below-market
interest rates are initially recognised at their fair value as a financial
liability, and subsequently measured at the higher of the initial value less
the cumulative amount of income recognised and their expected credit loss
provision. Loan commitments may be designated at fair value through profit or
loss where that is the business model under which such contracts are held.
Notional values of financial guarantee contracts and loan commitments are
disclosed in the table below.
Financial guarantees, trade credits and irrevocable letters of credit are the
notional values of contracts issued by the Group's Transaction Banking
business for which an obligation to make a payment has not arisen at the
reporting date. Transaction Banking will issue contracts to clients and
counterparties of clients, whereby in the event the holder of the contract is
not paid, the Group will reimburse the holder of the contract for the actual
financial loss suffered. These contracts have various legal forms such as
letters of credit, guarantee contracts and performance bonds. The contracts
are issued to facilitate trade through export and import business and provide
guarantees to financial institutions where the Group has a local presence,
as well as guaranteeing project financing involving large construction
projects undertaken by sovereigns and corporates. The contracts may contain
performance clauses which require the counterparty performing services or
providing goods to meet certain conditions before a right to payment is
achieved, however the Group does not guarantee this performance. The Group
will only guarantee the credit of the counterparty paying for the services or
goods.
Commitments are where the Group has confirmed its intention to provide funds
to a customer or on behalf of a customer under pre-specified terms and
conditions in the form of loans, overdrafts or future guarantees whether
cancellable or not and the Group has not made payments at the balance sheet
date; those instruments are included in these financial statements as
commitments. Some of these commitments are considered on demand as the Group
may have to honour them, or the client may draw down at any time.
Capital commitments are contractual commitments the Group has entered into to
purchase non-financial assets.
The table below shows the contract or underlying principal amounts of
unmatured off-balance sheet transactions at the balance sheet date. The
contract or underlying principal amounts indicate the volume of business
outstanding and do not represent amounts at risk.
Page 72
2025 2024
$million $million
Financial guarantees and other contingent liabilities
Financial guarantees, trade and irrevocable letters of credit 114,193 90,632
114,193 90,632
Commitments
Undrawn formal standby facilities, credit lines and other commitments to lend
One year and over 89,147 76,915
Less than one year 31,922 29,249
Unconditionally cancellable 78,176 76,365
199,245 182,529
Capital Commitments
Contracted capital expenditure approved by the directors but not provided for 62 123
in these accounts
As set out in Note 26, the Group has contingent liabilities in respect of
certain legal and regulatory matters. Note 26 also describes a matter relating
to equity-linked securities sold by Standard Chartered Bank Korea, for which
the Group has recognised a provision.
26. Legal and regulatory matters
Accounting policy
Where appropriate, the Group recognises a provision for liabilities when it is
probable that an outflow of economic
resources embodying economic benefits will be required, and for which a
reliable estimate can be made of the obligation. The uncertainties inherent in
legal and regulatory matters affect the amount and timing of any potential
outflows with respect to which provisions have been established. These
uncertainties also mean that it is not possible to give an aggregate estimate
of contingent liabilities arising from such legal and regulatory matters.
The Group receives legal claims against it in a number of jurisdictions and is
subject to regulatory and enforcement investigations and proceedings from time
to time. Apart from the matters described below, the Group currently considers
none of the ongoing claims, investigations or proceedings to be individually
material. However, in light of the uncertainties involved in such matters
there can be no assurance that the outcome of a particular matter or matters
currently not considered to be material may not ultimately be material to the
Group's results in a particular reporting period depending on, among other
things, the amount of the loss resulting from the matter(s) and the results
otherwise reported for such period.
Since 2014, the Group has been named as a defendant in a series of lawsuits
filed in the United States District Courts for the Southern and Eastern
Districts of New York against a number of banks on behalf of plaintiffs who
are, or are relatives of, victims of attacks in Iraq, Afghanistan and Israel.
The plaintiffs in each of these lawsuits allege that the defendant banks aided
and abetted the unlawful conduct of parties with connections to terrorist
organisations in breach of the United States Anti-Terrorism Act. None of the
lawsuits specify the amount of damages claimed. The Group continues to defend
these lawsuits.
In January 2020, a shareholder derivative complaint was filed by the City of
Philadelphia in New York State Court against 45 current and former directors
and senior officers of the Group. It is alleged that the individuals breached
their duties to the Group and caused a waste of corporate assets by permitting
the conduct that gave rise to the costs and losses to the Group related to
legacy conduct and control issues. In February 2022, the New York State Court
ruled in favour of Standard Chartered PLC's motion to dismiss the complaint.
The plaintiffs are pursuing an appeal against the February 2022 ruling. A
ruling on the plaintiffs' appeal is awaited.
Bernard Madoff's 2008 confession to running a Ponzi scheme through Bernard L.
Madoff Investment Securities LLC (BMIS) gave rise to a number of lawsuits
against the Group. BMIS and the Fairfield funds (which invested in BMIS) are
in bankruptcy and liquidation, respectively. Between 2010 and 2012, five
lawsuits were brought against the Group by the BMIS bankruptcy trustee and the
Fairfield funds' liquidators, in each case seeking to recover funds paid to
the Group's clients pursuant to redemption requests made prior to BMIS'
bankruptcy filing. The total amount sought in these cases exceeds U.S.$300
million, excluding any pre-judgment interest that may be awarded. Three of
the four lawsuits commenced by the Fairfield funds' liquidators have been
dismissed and those dismissals were upheld by the appeal court. The fourth
lawsuit has been dismissed and is not the subject of any further appeal. The
Group continues to defend the lawsuit brought by the BMIS bankruptcy trustee.
In June 2025, a lawsuit was filed in the Singapore High Court against Standard
Chartered Bank (Singapore) Limited ('Standard Chartered Singapore'), by three
companies now in liquidation that had misappropriated funds from 1Malaysia
Development Berhad (1MDB), seeking U.S.$2.7 billion. The companies allege,
among other things, that Standard Chartered Singapore knew or ought to have
known that these companies were engaged in the fraud on 1MDB at the time that
Standard Chartered Singapore effected transfers instructed by these companies.
The companies allege that in doing so, Standard Chartered Singapore breached
its mandate and applicable duties. Standard Chartered Singapore had reported
the transaction activities of these companies before it closed their accounts
in early 2013. Standard Chartered Singapore denies any and all liability and
will defend this lawsuit.
The Group is defending a lawsuit filed in the courts of Victoria, Australia,
against a number of financial institutions by two companies in liquidation,
Jabiru Satellite Limited and NewSat Limited. The claimants allege that the
defendants breached implied obligations under 2013 loan agreements and acted
unconscionably by declining to waive breaches and events of default and by
refusing to continue funding their satellite project, ultimately resulting in
the claimants entering receivership. The claimants have asserted loss and
damage of up to U.S.$4.81 billion from the defendants. In addition to having
denied any and all liability, the defendants will contest the claimants'
alleged losses, which the Group considers to be baseless. The trial of this
claim is due to start in Q2 2026.
Page 73
The Group has concluded that the threshold for recording provisions pursuant
to IAS 37 Provisions, Contingent Liabilities and Contingent Assets is not met
with respect to the above matters; however, the outcomes of these matters are
inherently uncertain and difficult to predict.
By way of update on other legal and regulatory matters which have previously
been included in this Note on account of being treated as contingent
liabilities but are no longer treated as such, either because the matter has
concluded (in the case of (a)) or a provision has been recognised (in the case
of (b)):
(a) Since October 2020, four lawsuits had been filed in the English High Court
against Standard Chartered PLC on behalf of more than 200 shareholders in
relation to alleged untrue and/or misleading statements and/or omissions in
information published by Standard Chartered PLC in its rights issue
prospectuses of 2008, 2010 and 2015 and/or public statements regarding the
Group's historic sanctions, money laundering and financial crime compliance
issues. These lawsuits were brought under sections 90 and 90A of the Financial
Services and Markets Act 2000. The trial of these lawsuits was due to start in
late 2026; however, in December 2025, a settlement was reached with the
claimants, and this matter is now concluded.
(b) A number of Korean banks sold equity-linked securities (ELS) to customers,
the redemption values of which are determined by the performance of various
stock indices. From January 2021 to May 2023, Standard Chartered Bank Korea
sold relevant ELS to its customers. Due to the performance of the Hang Seng
China Enterprise Index, many customers of Korean banks experienced loss on
their ELS investments. Standard Chartered Bank Korea has paid or offered
compensation to its impacted customers. In November 2025, the Financial
Supervisory Service issued a notice of a proposed regulatory penalty relating
to the ELS matter, which Standard Chartered Bank Korea is contesting.
Appropriate provisions have been recognised with respect to the proposed
penalty amount and outstanding compensation claims (see Note 24).
27. Subordinated liabilities and other borrowed funds
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy.
2025 2024
$million $million
Subordinated loan capital - issued by subsidiary undertakings
$700 million 8.0 per cent subordinated notes due 2031(1) 330 326
NPR2.4 billion 10.3 per cent fixed rate subordinated notes due 2028(2) 17 18
347 344
Subordinated loan capital - issued by the Company(3)
£900 million 5.125 per cent subordinated notes due 2034 657 601
$2 billion 5.7 per cent subordinated notes due 2044 2,222 2,179
$750 million 5.3 per cent subordinated notes due 2043 716 691
$1.25 billion 4.3 per cent subordinated notes due 2027 1,218 1,174
$1 billion 3.516 per cent fixed rate reset subordinated notes due 2030 - 996
(callable 2025)
$500 million 4.866 per cent fixed rate reset subordinated notes due 2033 493 478
(callable 2028)
£96.035 million 7.375 per cent Non-Cum Pref Shares (reclassed as Debt) - 129 121
Other borrowings
£99.250 million 8.25 per cent Non-Cum Pref Shares (reclassed as Debt) - Other 134 124
borrowings
$750 million 3.603 per cent fixed rate reset subordinated notes due 2033 671 634
(callable 2032)
€1 billion 2.5 per cent fixed rate reset subordinated notes due 2030 - 1,015
(callable 2025)
$1.25 billion 3.265 per cent fixed rate reset subordinated notes due 2036 1,094 1,032
(callable 2030)
€1 billion 1.200 per cent fixed rate reset subordinated notes due 2031 1,153 993
(callable 2026)
8,487 10,038
Total for Group 8,834 10,382
1 Issued by Standard Chartered Bank.
2 Issued by Standard Chartered Bank Nepal Limited. NPR refers to Nepalese
Rupee.
3 In the balance sheet of the Company the amount recognised is $8,684
million (2024: $10,338 million), with the difference on account of hedge
accounting achieved on a Group basis.
Page 74
2025 2024
USD EUR GBP NPR Total USD EUR GBP NPR Total
$million $million $million $million $million $million $million $million $million $million
Fixed rate subordinated debt 6,744 1,153 920 17 8,834 7,510 2,008 846 18 10,382
Redemptions and repurchases during the year.
Standard Chartered PLC exercised its right to redeem $1 billion 3.516 per cent
subordinated notes 2025 and €1 billion 2.5 per cent subordinated notes 2025.
Issuance during the year
There was no issuance during the period.
28. Share capital, other equity instruments and reserves
Accounting policy
Securities which carry a discretionary coupon and have no fixed maturity or
redemption date are classified as other equity instruments. Interest payments
on these securities are recognised, net of tax, as distributions from equity
in the period in which they are paid.
Where the Company or other members of the consolidated Group purchase the
Company's equity share capital, the consideration paid is deducted from the
total shareholders' equity of the Group and/or of the Company as treasury
shares until they are cancelled. Where such shares are subsequently sold or
reissued, any consideration received is included in shareholders' equity of
the Group and/or the Company.
Number of Ordinary Ordinary Preference Total share capital and Other equity instruments
ordinary shares share capital(1) Share premium share capital and share premium $million
million $million $million share premium(2) $million
$million
At 1 January 2024 2,665 1,332 3,989 1,494 6,815 5,512
Cancellation of shares including share buyback (240) (120) - - (120) -
Additional Tier 1 equity issuance(4) - - - - - 1,568
Additional Tier 1 Redemption(5) - - - - - (553)
Other movements⁵ - - - - - (25)
At 31 December 2024 2,425 1,212 3,989 1,494 6,695 6,502
Cancellation of shares including share buyback (162) (81) - - (81) -
Additional Tier 1 equity issuance(4) - - - - - 1,989
Additional Tier 1 Redemption(5) - - - - - (1,000)
Other movements(3) - - - - - 37
At 31 December 2025 2,263 1,131 3,989 1,494 6,614 7,528
1 Issued and fully paid ordinary shares of 50 cents each.
2 Includes preference share capital of $75,000.
3 2025 include transfer of $25 million realised translation loss on
redemption of AT1 securities of SGD 750 million to retained earnings.
4 Movement in 2025 relates to $994 million and $995 million fixed rate
resetting perpetual subordinated contingent convertible AT1 securities issued
by
Standard Chartered PLC. Movement in 2024 includes $993 million and $575
million (SGD 750 million) fixed rate resetting perpetual subordinated
contingent convertible AT1 securities issued by Standard Chartered PLC.
5 Movement in 2025 relates to redemption of $1,000 million Fixed Rate
Resetting Perpetual Contingent Convertible Securities on its first optional
redemption date of 26 July 2025. Movement in 2024 relates to redemption of AT1
securities of SGD 750 million ($553 million) and realised translation loss
($25 million) reported in other movements.
Share buyback
On 30 July 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 $69
million, the total consideration paid was $1,500 million, and the buyback
completed on 30 January 2025. The total number of shares purchased of
137,562,542 representing 5.39 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.
On 21 February 2025, the Group announced the buyback programme for a share
buyback of its ordinary shares of $0.50 each. Nominal value of share purchases
was $49 million, the total consideration paid was $1,500 million, and the
buyback completed on 30 July 2025. The total number of shares purchased of
98,162,451 representing 4.07 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.
On 31 July 2025, the Group announced the buyback programme for a share buyback
of its ordinary shares of $0.50 each. As at 31 December 2025, nominal value
of share purchases was $27 million, the total consideration paid was $1,073
million and the total number of shares purchased was 53,061,718, representing
2.29 per cent of the ordinary shares in issue at the beginning of the
programme. The buyback was completed on 26 January 2026 with a further
$227million consideration paid and recognised as irrevocable obligation to
buyback shares. The nominal value of the shares was transferred from the share
capital to the capital redemption reserve account.
Page 75
The shares were purchased by Standard Chartered PLC on various exchanges not
including the Hong Kong Stock Exchange.
Number of Highest Lowest Average Aggregate Aggregate
ordinary shares price Paid price paid price paid price paid price paid
£ £ per share £ $
£
January 2025 11,300,128 10.87 9.704 10.4136 117,671,362 145,286,293
February 2025 3,395,890 12.725 11.79 12.33 41,849,427 52,884,831
March 2025 24,636,534 12.81 11.175 11.8839 292,546,496 377,784,647
April 2025 19,971,649 11.545 8.728 10.201 201,750,555 264,351,775
May 2025 18,340,963 11.755 10.385 11.2748 205,669,905 274,781,456
June 2025 15,903,416 12.2 11.16 11.7 186,026,636 252,365,331
July 2025 15,913,999 13.78 11.675 12.9343 205,721,926 277,831,848
August 2025 10,425,043 14.31 12.855 13.7655 143,350,111 192,812,669
September 2025 11,517,686 14.65 13.545 14.1412 162,803,283 219,854,779
October 2025 10,604,541 15.645 13.515 14.5063 153,001,512 204,574,723
November 2025 9,494,913 16.83 15.255 16.0656 152,484,758 200,451,254
December 2025 11,019,535 18.345 16.235 17.4014 191,126,325 255,662,097
Ordinary share capital
In accordance with the Companies Act 2006 the Company does not have authorised
share capital. The nominal value of each ordinary share is 50 cents.
During the period nil shares were issued under employee share plans.
Preference share capital
At 31 December 2025, the Company has 15,000 $5 non-cumulative redeemable
preference shares in issue, with a premium of $99,995 making a paid up amount
per preference share of $100,000. The preference shares are redeemable at the
option of the Company and are classified in equity.
The available profits of the Company are distributed to the holders of the
issued preference shares in priority to payments made to holders of the
ordinary shares and in priority to, or pari passu with, any payments to the
holders of any other class of shares in issue. On a winding up, the assets of
the Company are applied to the holders of the preference shares in priority to
any payment to the ordinary shareholders and in priority to, or pari passu
with, the holders of any other shares in issue, for an amount equal to any
dividends payable (on approval of the Board) and the nominal value of the
shares together with any premium as determined by the Board. The redeemable
preference shares are redeemable at the paid up amount (which includes
premium) at the option of the Company in accordance with the terms of the
shares. The holders of the preference shares are not entitled to attend or
vote at any general meeting except where any relevant dividend due is not paid
in full or where a resolution is proposed varying the rights of the preference
shares.
Other equity instruments
The table provides details of outstanding Fixed Rate Resetting Perpetual
Subordinated Contingent Convertible AT1 securities issued by Standard
Chartered PLC. All issuances are made for general business purposes and to
increase the regulatory capital base of the Group.
Issuance date Nominal value Proceeds net of Interest Coupon payment dates each year(2) First reset dates(3) Conversion
issue costs
price per
million
rate(1)
$ million ordinary share(4)
14 January 2021 $1,250 1,239 4.75% 14 January, 14 July 14 July 2031 $6.353
19 August 2021 $1,500 1,489 4.30% 19 February, 19 August 19 August 2028 $6.382
15 August 2022 $1,250 1,239 7.75% 15 February, 15 August 15 February 2028 $7.333
08 March 2024 $1,000 993 7.875% 8 March, 8 September 8 September 2030 $8.216
19 September 2024 SGD750 579 5.300% 19 March, 19 September 19 March 2030 SGD12.929
16 January 2025 $1,000 994 7.625% 16 January, 16 July 16 July 2032 $12.330
14 November 2025 $1,000 995 7.00% 14 May, 14 November 14 May 2036 $20.760
Total 7,528
1 Interest rates for the period from (and including) the issue date to
(but excluding) the first reset date.
2 Interest payable semi-annually in arrears.
3 Securities are resettable each date falling five years, or an integral
multiple of five years, after the first reset date.
4 Conversion price set at the time of pricing with reference to closing
share price and any applicable discount.
Page 76
The AT1 issuances above are primarily purchased by institutional investors.
The principal terms of the AT1 securities are described below:
• The securities are perpetual and redeemable, at the option of Standard
Chartered PLC in whole but not in part, on the first interest reset date and
each date falling five years after the first reset date
• The securities are also redeemable for certain regulatory or tax reasons
on any date at 100 per cent of their principal amount together with any
accrued but unpaid interest up to (but excluding) the date fixed for
redemption. Any redemption is subject to Standard Chartered PLC giving notice
to the relevant regulator and the regulator granting permission to redeem
• Interest payments on these securities will be accounted for as a
dividend
• Interest on the securities is due and payable only at the sole and
absolute discretion of Standard Chartered PLC, subject to certain additional
restrictions set out in the terms and conditions. Accordingly, Standard
Chartered PLC may at any time elect to cancel any interest payment (or part
thereof) which would otherwise be payable on any interest payment date
• The securities convert into ordinary shares of Standard Chartered PLC,
at a pre-determined price detailed in the table above, should the fully loaded
Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. Approximately
911 million ordinary shares would be required to satisfy the conversion of all
the securities mentioned above.
The securities rank behind the claims against Standard Chartered PLC of (a)
unsubordinated creditors, (b) which are expressed to be subordinated to the
claims of unsubordinated creditors of Standard Chartered PLC but not further
or otherwise; or (c) which are, or are expressed to be, junior to the claims
of other creditors of Standard Chartered PLC, whether subordinated or
unsubordinated, other than claims which rank, or are expressed to rank, pari
passu with, or junior to, the claims of holders of the AT1 securities in a
winding-up occurring prior to the conversion trigger.
Reserves
The constituents of the reserves are summarised as follows:
• The capital reserve represents the exchange difference on redenomination
of share capital and share premium from sterling to US dollars in 2001. The
capital redemption reserve represents the nominal value of preference shares
redeemed
• The amounts in the 'Capital and Merger Reserve' represents the premium
arising on shares issued using a cash box financing structure, which required
the Company to create a merger reserve under section 612 of the Companies Act
2006. Shares were issued using this structure in 2005 and 2006 to assist in
the funding of Korea ($1.9 billion) and Taiwan ($1.2 billion) acquisitions, in
2008, 2010 and 2015 for the shares issued by way of a rights issue, primarily
for capital maintenance requirements and for the shares issued in 2009 by way
of an accelerated book build, the proceeds of which were used in the ordinary
course of business of the Group. The funding raised by the 2008, 2010 and 2015
rights issues and 2009 share issue was fully retained within the Company. Of
the 2015 funding, $1.5 billion was used to subscribe to additional equity in
Standard Chartered Bank, a wholly owned subsidiary of the Company. Apart from
the Korea, Taiwan and Standard Chartered Bank funding, the merger reserve is
considered realised and distributable
• Own credit adjustment reserve represents the cumulative gains and losses
on financial liabilities designated at fair value through profit or loss
relating to own credit. Gains and losses on financial liabilities designated
at fair value through profit or loss relating to own credit in the year have
been taken through other comprehensive income into this reserve. On
derecognition of applicable instruments the balance of any OCA will not be
recycled to the income statement, but will be transferred within equity to
retained earning
• Fair value through other comprehensive income (FVOCI) debt reserve
represents the unrealised fair value gains and losses in respect of financial
assets classified as FVOCI, net of expected credit losses and taxation. Gains
and losses are deferred in this reserve and are reclassified to the income
statement when the underlying asset is sold, matures or becomes impaired
• FVOCI equity reserve represents unrealised fair value gains and losses
in respect of financial assets classified as FVOCI, net of taxation. Gains and
losses are recorded in this reserve and never recycled to the income statement
• Cash flow hedge reserve represents the effective portion of the gains
and losses on derivatives that meet the criteria for these types of hedges.
Gains and losses are deferred in this reserve and are reclassified to the
income statement when the underlying hedged item affects profit and loss or
when a forecast transaction is no longer expected to occur
• Translation reserve represents the cumulative foreign exchange gains and
losses on translation of the net investment of the Group in foreign
operations. Since 1 January 2004, gains and losses are deferred to this
reserve and are reclassified to the income statement when the underlying
foreign operation is disposed. Gains and losses arising from derivatives used
as hedges of net investments are netted against the foreign exchange gains and
losses on translation of the net investment of the foreign operations
• Retained earnings represents profits and other comprehensive income
earned by the Group and Company in the current and prior periods, together
with the after tax increase relating to equity-settled share options, less
dividend distributions, own shares held (treasury shares) and share buybacks.
A substantial part of the Group's reserves is held in overseas subsidiary
undertakings and branches, principally to support local operations or to
comply with local regulations. The maintenance of local regulatory capital
ratios could potentially restrict the amount of reserves which can be
remitted. In addition, if these overseas reserves were to be remitted, further
unprovided taxation liabilities might arise.
Page 77
As at 31 December 2025, the distributable reserves of Standard Chartered PLC
(the Company) were $14.1 billion (31 December 2024: $14.1 billion).
Distributable reserves of the Company were $14.1 billion, which include the
distributable portions of retained earnings. Distributable reserves are
derived from the Merger reserve and Retained earnings, reduced by ordinary
dividend payments, distributions on AT1 instruments, share buybacks,
impairments in investments in subsidiaries, restricted items in line with
section 830 and 831 of the Companies Act 2006. They are increased by profits
and the realisation of retained earnings.
Own shares
The 2004 Employee Benefit Trust (2004 Trust) is used in conjunction with the
Group's employee share schemes and other employee share-based payments (such
as upfront shares and salary shares). Computershare Trustees (Jersey) Limited
is the trustee of the 2004 Trust. Group companies fund the 2004 Trust from
time to time to enable the trustees to acquire shares in Standard Chartered
PLC to satisfy these arrangements.
Details of the shares purchased and held by the 2004 Trust are set out below.
2004 Trust
2025 2024
Shares purchased during the period 24,477,541 19,604,557
Market price of shares purchased ($million) 508 223
Shares held at the end of the period 16,474,859 17,589,987
Maximum number of shares held during the period 25,082,882 28,085,688
Except as disclosed, neither the Company nor any of its subsidiaries has
bought, sold or redeemed any securities of the Company listed on The Stock
Exchange of Hong Kong Limited during the period.
Computershare Trustees (Jersey) Limited abstains from voting on the Standard
Chartered PLC shares held in the 2004 Trust.
Dividend waivers
The trustees of the 2004 Trust, which holds ordinary shares in Standard
Chartered PLC in connection with the operation of its employee share plans,
waive any dividend on the balance of ordinary shares that have not been
allocated to employees, except for 0.01p per share.
Changes in share capital and other equity instruments of Standard Chartered PLC subsidiaries
The table below details the transactions in equity instruments (including
convertible and hybrid instruments) of the Group's subsidiaries, including
issuances, conversions, redemptions, purchase or cancellation during the
financial year. This is required under the Hong Kong Listing requirements,
appendix D2 paragraph 10.
Name Description of Issued/(redeemed) Issued/(redeemed)
Shares Shares capital
Anchorpoint Financial Limited HKD Ordinary 9,360,000 HKD93,600,000
Appro Onboarding Solutions FZ-LLC AED1,000.00 Ordinary 55,609 AED55,609,000
Audax Financial Technology Pte. Ltd US$1.00 Ordinary 8,600,000 USD8,600,000
CashEnable Pte. Ltd. US$ Ordinary 4,200,000 USD4,200,000
Financial Inclusion Technologies Ltd US$ Ordinary 17,513,444 USD17,513,444
Fourtwothree Pte. Ltd US$ Ordinary 2,300,000 USD2,300,000
Furaha Holding Ltd US$1.00 Ordinary 8,500,000 USD8,500,000
Letsbloom India Private Limited INR10.00 Equity 3,815,713 INR38,157,130
Letsbloom Pte. Ltd. US$ Ordinary-A 1,470,000 USD1,470,000
Libeara (Singapore) Pte. Ltd. US$ Ordinary 4,300,000 USD4,300,000
Libeara Pte. Ltd. US$ Ordinary 3,500,000 USD3,500,000
Mox Bank Limited HKD Ordinary 93,840,000 HKD938,400,000
myZoi Financial Inclusion Technologies LLC AED1.00 Ordinary 40,000,000 AED40,000,000
Power2SME Pte. Ltd. US$ Ordinary 9,175,676 USD9,175,676
PT Labamu Sejahtera Indonesia IDR10,000.00 Ordinary 6,090,299 IDR60,902,990,000
Qatalyst Pte. Ltd. US$1.00 Ordinary 1,100,000 USD1,100,000
SC Ventures Holdings Limited US$1.00 Ordinary 44,190,000 USD44,190,000
SCV Master Holding Company Pte. Ltd. US$ Ordinary 66,200,000 USD66,200,000
SCV Research and Development Pte. Ltd. US$ Ordinary-A 18,526,896 USD18,526,896
Sky Harmony Holdings Limited USD1.00 Ordinary 1 USD1
Solv Vietnam Company Limited VND Charter Capital 12,845,000,000 VND12,845,000,000
Solvezy Technology Ghana Ltd GHS Ordinary 40,957,952 GHS40,957,952
Solvezy Technology Kenya Limited KES1,000.00 Ordinary 289,482 KES289,482,000
Solv-India Pte. Ltd. US$ Ordinary 54,900,000 USD54,900,000
Standard Chartered Bank Cote d'Ivoire SA XOF100,000.00 52,566 XOF5,256,600,000
Standard Chartered Bank Nigeria Limited NGN1.00 Ordinary 9,151,152,653 NGN9,151,152,653
Standard Chartered Holdings Limited US$2.00 Ordinary 11,624,204 USD23,248,408
Standard Chartered I H Limited US$1.00 Ordinary 23,248,408 USD23,248,408
Page 78
Name Description of Issued/(redeemed) Issued/(redeemed)
Shares Shares capital
Standard Chartered Luxembourg S.A. €1.00 Ordinary 1,500,000 EUR1,500,000
Standard Chartered Private Equity (Mauritius) Limited US$1.00 Ordinary 500,000 USD500,000
Standard Chartered Private Equity (Mauritius) lll Limited US$1.00 Ordinary 38,813,419 USD38,813,419
Standard Chartered Research and Technology India Private Limited INR10.00 Equity 34,617,793 INR346,177,930
Standard Chartered Strategic Investments Limited US$1.00 Ordinary 5,949,826 USD5,949,826
TASConnect (Malaysia) Sdn. Bhd. RM5.00 Ordinary 687,900 MYR3,439,500
Trust Bank Singapore Limited SGD Ordinary 25,000,000 SGD25,000,000
Zodia Custody (Europe) S.A. €100.00 Ordinary 300 EUR30,000
Zodia Holdings Limited US$1.00 Ordinary 41,401,604 USD41,401,604
Zodia Markets (AME) Limited US$ Ordinary 1,200,000 USD1,200,000
Zodia Markets (Jersey) Limited US$ Ordinary 10,000 USD10,000
Zodia Markets Holdings Limited US$1.00 Series A 4,560 USD4,560
Please see Note 22 Debt securities in issue for issuances and redemptions of
senior notes.
Please see Note 27 Subordinated liabilities and other borrowed funds for
issuance and redemptions of subordinated liabilities.
Please see Note 41 Related undertakings of the Group for subsidiaries
liquidated, dissolved or sold during the year.
29. Non-controlling interests
2025 2024
$million $million
As at 1 January 394 396
Comprehensive income/(loss) for the year 45 (22)
Income/(loss) in equity attributable to non-controlling interests 33 (14)
Other profits/(loss) attributable to non-controlling interests 12 (8)
Distributions (50) (43)
Other increases(1) 76 63
As at 31 December 465 394
1 Movements in 2025 are primarily from Mox Bank Limited ($26 million),
Standard Chartered Research and Technology India Private Limited ($12
million), Zodia Markets Holdings Limited ($15 million), Trust Bank Singapore
Limited ($8 million), Anchorpoint Financial Limited ($6 million), Financial
Inclusion Tech ($6 million) and Furaha Holding Ltd ($3million). Movements in
2024 are primarily from non-controlling interests pertaining to Trust Bank
Singapore Limited ($55 million) and Mox Bank Limited ($14 million) partly
offset by disposal of SCB Angola S.A. ($6 million). Cash received from
additional investment was $40 million (31 December 2024: $55 million).
30. Retirement benefit obligations
Accounting policy
The Group operates pension and other post-retirement benefit plans around the
world, which are categorised into defined contribution plans and defined
benefit plans.
For defined contribution plans, the Group pays contributions to publicly or
privately administered pension plans on a statutory or contractual basis, and
such amounts are charged to operating expenses. The Group has no further
payment obligations once the contributions have been paid.
For defined benefit plans, which promise levels of payments where the future
cost is not known with certainty:
• The accounting obligation is calculated annually by independent
actuaries using the projected unit method.
• Actuarial gains and losses that arise are recognised in shareholders'
equity and presented in the statement of other comprehensive income in the
period they arise.
• The Group determines the net interest expense on the net defined benefit
liability for the year by applying the discount rate used to measure the
defined benefit obligation at the beginning of the annual period to the net
defined benefit liability, taking into account any changes in the net defined
benefit liability during the year as a result of contributions and benefit
payments. Net interest expense, the cost of the accrual of new benefits,
benefit enhancements (or reductions) and administration expenses met directly
from plan assets are recognised in the income statement in the period in which
they were incurred.
Other accounting estimates and judgements
There are many factors that affect the measurement of the retirement benefit
obligations. This measurement requires the use of estimates, such as discount
rates, inflation, pension increases, salary increases, and life expectancies
which are inherently uncertain.
Page 79
The table below summarises how these assumptions are set:
Assumption Detail
Discount rate Determined by reference to market yields at the end of the reporting period on
high-quality corporate bonds (or, in countries where there is no deep market
in such bonds, government bonds) of a currency and term consistent with the
currency and term of the post-employment benefit obligations. This is the
approach adopted across all our geographies.
Inflation Where there are inflation-linked bonds available (e.g. United Kingdom and the
eurozone), the Group derives inflation based on the market on those bonds,
with the market yield adjusted in respect of the United Kingdom to take
account of the fact that liabilities are linked to Consumer Price Index
inflation, whereas the reference bonds are linked to Retail Price Index
inflation. Where no inflation-linked bonds exist, we determine inflation
assumptions based on a combination of long-term forecasts and short-term
inflation data.
Salary growth Salary growth assumptions reflect the Group's long-term expectations, taking
into account future business plans and macroeconomic data (primarily expected
future long-term inflation).
Demographic assumptions Demographic assumptions, including mortality and turnover rates, are typically
set based on the assumptions used in the most recent actuarial funding
valuation, and will generally use industry standard tables, adjusted where
appropriate to reflect recent historic experience and/or future expectations.
The sensitivity of the liabilities to changes in these assumptions is shown in
the Note below.
Retirement benefit obligations and charge comprises:
Obligation Charge
2025 2024 2025 2024
$million $million $million $million
Defined benefit plans 146 101 125 62
Defined contribution plans 23 14 393(1) 389
Total 169 115 518(2) 451(2)
1 The Group during the year utilised against defined contribution
payments, $1 million forfeited pension contributions in respect of employees
who left before their interests vested fully. The residual balance of
forfeited contributions is $21 million.
2 Refer to note 7 - Operating expenses.
The Group operates over 60 defined benefit plans across its geographies, many
of which are closed to new entrants who now join defined contribution
arrangements. The aim of all these plans is, as part of the Group's commitment
to financial wellbeing, to give employees the opportunity to save
appropriately for retirement in a way that is consistent with local
regulations, taxation requirements and market conditions. The defined benefit
plans expose the Group to currency risk, interest rate risk, investment risk
and actuarial risks such as longevity risk.
The disclosures required under IAS 19 have been calculated by independent
qualified actuaries based on the most recent full actuarial valuations
updated, where necessary, to 31 December 2025.
Financial and demographic assumptions have remained largely consistent with
those used in the prior year. And the impact on the liabilities of any
movements in interest and inflation rates has been partially hedged by the
government and corporate bonds held.
The increase in the pension deficit during the year was primarily driven by
regulatory and legal developments in India (causing a past service cost of
$48 million) and Kenya ($19 million). In India, a past service cost has been
recognised in relation to statutory lump sum plans, based on the current
interpretation of new regulations that expand the definition of pay on which
they are calculated. The new regulations were substantively enacted on 21
November and applied both immediately and retrospectively; further
clarification from the local authorities is expected in 2026. In Kenya, the
Retirement Benefits Appeals Tribunal (RBAT) ruled broadly in favour of a
longstanding legal case brought by 629 former employees. A past service cost
reflects the financial impact of this judgment, which included a mandate to
fund the plan. Where legacy colleagues have yet to be traced, the temporary
surplus arising from the mandated funding has been disregarded under IFRIC 14.
UK Fund
The Standard Chartered Pension Fund (the 'UK Fund') is the Group's largest
pension plan, representing 46 per cent (31 December 2024: 46 per cent) of
total pension liabilities. The UK Fund is set up under a trust that is legally
separate from the Bank (its formal sponsor) and, as required by UK
legislation, at least one third of the trustee directors are nominated by
members; the remainder are appointed by the Bank. The trustee directors have a
fiduciary duty to members and are responsible for governing the UK Fund in
accordance with its Trust Deed and Rules.
The UK Fund was closed to new entrants from 1 July 1998 and closed to the
accrual of new benefits from 1 April 2018: all UK employees are now offered
membership of a defined contribution plan.
The financial position of the UK Fund is regularly assessed by an independent
qualified actuary. The funding valuation as at 31 December 2023 was
completed in December 2024 by the Scheme Actuary, T Kripps of Willis Towers
Watson, using assumptions different from those used for IAS 19, and agreed
with the UK Fund trustee. It showed that the UK Fund was 96% funded at that
date, revealing a past service deficit of $48 million (£38 million).
Page 80
To repair the deficit, three annual cash payments each of $13 million (£10
million) were agreed, with the first of these paid in December 2024, and two
further instalments to be paid in December 2025 and December 2026. However,
the agreement allowed that the payments due in 2025 and 2026 may be varied
depending on the funding position at the preceding 30 June provided that total
payments over the three year recovery plan period do not exceed $38 million
(£30 million). Based on financial conditions at 30 June 2025, the Scheme
Actuary determined that the 2025 payment should be $7million (£5 million),
and this was remitted to the Fund in December. As part of the 2023 valuation
agreement, it was agreed that gilts with a nominal value of $200 million
(£160 million) would remain in escrow to provide additional security the
Trustee.
The Group has not recognised any additional liability under IFRIC 14, as the
Bank has control of any pension surplus under the Trust Deed and Rules.
Overseas plans
The principal overseas defined benefit arrangements operated by the Group are
in Hong Kong, India, Jersey, Korea, Taiwan, Thailand, United Arab Emirates
(UAE) and the United States of America (US). Plans in Hong Kong, India, Korea,
Taiwan, Thailand, and UAE remain open for accrual of future benefits.
Key assumptions
The principal financial assumptions used at 31 December 2025 were:
2025 2024
UK Funded Overseas Plans(1) Unfunded Plans(2) UK Funded Overseas Plans(1) Unfunded Plans(2)
% % % % % %
Discount rate 5.5 1.3 - 6.7 1.4 - 6.7 5.5 1.6 - 6.9 2.5 - 6.9
Price inflation 2.4 2.0 - 5.0 2.0 - 5.0 2.5 2.0 - 5.0 2.0 - 5.0
Salary increases n/a 3.5 - 7.5 2.4 - 7.5 n/a 3.5 - 8.5 4.0 - 8.5
Pension increases 2.4 0 - 2.8 0 - 2.4 2.3 0 - 2.9 0 - 2.3
Post-retirement medical rate n/a n/a 8% in 2025 reducing n/a 8% in 2024
by 0.5%
reducing
per annum to 5% in 2031
by 0.5%
per annum to 5% in 2030
1 The range of assumptions shown is for the funded defined benefit
overseas plans in Hong Kong, India, Jersey, Korea, Taiwan, and the US. These
comprise around 80 per cent of the total liabilities of overseas funded
plans.
2 The range of assumptions shown is for the main unfunded defined benefit
plans in India, Korea, Thailand, Hong Kong, UAE, UK and the US. They comprise
over 90 per cent of the total liabilities of unfunded plans.
The principal non-financial assumptions are those made for UK life expectancy.
The UK mortality tables are S4PMA for males and S4PFA for females, projected
by year of birth with the CMI 2023 improvement model with a 1.25 per cent
annual trend and initial addition parameter of 0.25 per cent. Scaling factors
of 81 per cent for male pensioners, 93 per cent for female pensioners, 81 per
cent for male dependants and 81 per cent for female dependants have been
applied.
The resulting assumptions for life expectancy for the UK Fund are that a male
member currently aged 60 will live for 28 years (2024: 28 years) and a female
member for 29 years (2024: 29 years) and a male member currently aged 40 will
live for 29 years (2024: 29 years) and a female member for 31 years (2024: 31
years) after their 60th birthdays.
Both financial and non-financial assumptions can be expected to change in the
future, which would affect the value placed on the liabilities. For example,
changes at the reporting date to one of the relevant actuarial assumptions,
holding other assumptions constant, would have affected the defined benefit
obligation by the amounts shown below:
• If the discount rate increased by 25 basis points the liability would
reduce by approximately $25 million for the UK Fund (2024: $25 million) and
$20 million for the other plans (2024: $20 million)
• If the rate of inflation increased by 25 basis points the liability,
allowing for the consequent impact on pension and salary increases, would
increase by approximately $15 million for the UK Fund (2024: $15 million) and
$10 million for the other plans (2024: $15 million)
• If the rate of salary growth relative to inflation increased by 25 basis
points the liability would increase by nil for the UK Fund (2024: nil) and
approximately $10 million for the other plans (2024: $10 million)
• If longevity expectations increased by one year the liability would
increase by approximately $40 million for the UK Fund (2024: $35 million) and
$10 million for the other plans (2024: $10 million)
Although this analysis does not take account of the full distribution of cash
flows expected, it does provide an approximation of the sensitivity to the
main assumptions. While changes in other assumptions would also have an
impact, the effect would not be as significant.
Page 81
Profile of plan obligations
Funded plans Unfunded
plans
UK Fund Overseas
Duration of the defined benefit obligation (in years) 10 8 8
Duration of the defined benefit obligation - 2024 10 8 8
Benefits expected to be paid from plans
Benefits expected to be paid during 2026 89 102 21
Benefits expected to be paid during 2027 92 138 19
Benefits expected to be paid during 2028 94 117 17
Benefits expected to be paid during 2029 96 127 17
Benefits expected to be paid during 2030 99 122 19
Benefits expected to be paid during 2031 to 2035 529 595 91
Fund values:
2025 2024
UK Fund Overseas plans UK Fund Ove
rse
as
pla
ns
Quoted assets Unquoted assets Total assets Quoted assets Unquoted assets Total assets Quoted assets Unquoted assets Total assets Quoted assets Unquoted assets Total assets
$million $million $million $million $million $million $million $million $million $million $million $million
At 31 December
Equities 2 - 2 108 - 108 2 - 2 132 - 132
Government bonds 332 - 332 323 - 323 342 - 342 269 - 269
Corporate bonds 411 134 545 266 - 266 357 126 483 291 - 291
Hedge funds - 4 4 94 - 94 - 5 5 - - -
Infrastructure - 191 191 - - - - 170 170 - - -
Property - 80 80 18 18 - 81 81 - 15 15
Derivatives 2 (2) - - - - 22 (1) 21 - - -
Cash and equivalents 38 - 38 151 165² 316 35 - 35 60 153(2) 213
Others 9 - 9 20 - 20 7 2 9 - 156 156
Total fair value of assets(1) 794 407 1,201 962 183 1,145 765 383 1,148 752 324 1,076
1 Self-investment is monitored closely and is less than $1 million of
Standard Chartered equities and bonds for 2025 (31 December 2024: <$1
million).
Self-investment is only allowed where it is not practical to exclude it - for
example through investment in index-tracking funds where the Group is a
constituent of the relevant index.
2 Cash and equivalents includes the value of insurance contracts held in
Korea which invest only in short term money market instruments.
At 31 December 2025 At 31 December 2024
Funded plans Unfunded Plans Funded plans Unfunded Plans
UK Fund Overseas $million UK Fund Overseas $million
$million Plans $million Plans
$million $million
Total fair value of assets 1,201 1,141(1) n/a 1,148 1,076 n/a
Present value of liabilities (1,133) (1,170) (185) (1,070) (1,075) (180)
Net pension plan asset/(obligation) 68 (29) (185) 78 1 (180)
Of which: Total pension assets in respect of plans in surplus 68 86 - 78 73 -
Of which: Total pension obligations in respect of plans in deficit - (115) (185) - (72) (180)
1 Overseas plan assets include an asset ceiling in Kenya and legacy
Zimbabwe arrangement, resulting from a restriction on the recognition of
surplus.
Page 82
The pension cost for defined benefit plans was:
2025 2024
Funded plans Unfunded plans Total Funded plans Unfunded plans T
o
$million $million $million t
a
l
$
m
i
l
l
i
o
n
UK Fund Overseas plans UK Fund Overseas plans
$million $million $million $million
Current service cost(1) - 50 6 56 - 44 8 52
Past service cost and curtailments(2) - 67 - 67 - 2 (1) 1
Settlement cost(3) - 1 - 1 - 3 - 3
Interest income on pension plan assets (65) (61) - (126) (56) (41) - (97)
Interest on pension plan liabilities 60 59 8 127 54 41 8 103
Total charge to profit before deduction of tax (5) 116 14 125 (2) 49 15 62
Losses/(gains) on plan assets(4) 18 (36) - (18) 78 (32) - 46
Losses/(gains) on liabilities 10 18 1 29 (103) 6 (1) (98)
Total losses/(gains) recognised directly in statement of comprehensive income 28 (18) 1 11 (25) (26) (1) (52)
before tax
Deferred taxation (2) (2) - (4) 5 7 - 12
Total losses/(gains) after tax 26 (20) 1 7 (20) (19) (1) (40)
1 Includes administrative expenses paid out of plan assets of $1 million
(31 December 2024: $1 million) and actuarial losses of $1 million (31 December
2024: $1 million) that are immediately recognised through P&L in line with
the requirements of IAS 19.
2 Relates to provisional impact of regulatory change in India and RBAT court
ruling in Kenya.
3 Impact of settlements relates to termination benefits in Indonesia.
4 The actual return on the UK Fund assets was a gain of $47 million (31
December 2024: $22 million loss) and on overseas plan assets was a gain of $97
million (31 December 2024: $73 million loss).
Movement in the deficit during the year comprises:
2025 2024
Funded plans Unfunded plans Total Funded plans Unfunded plans T
o
$million $million $million t
a
l
$
m
i
l
l
i
o
n
UK Fund Overseas plans UK Fund Overseas plans
$million $million $million $million
Surplus/(Deficit) 78 1 (180) (101) 40 (17) (189) (166)
Contributions 7 71 16 94 13 39 16 68
Current service cost(1) - (50) (6) (56) - (44) (8) (52)
Past service cost and curtailments(2) - (67) - (67) - (2) 1 (1)
Settlement costs and transfers impact - (1) - (1) - (3) - (3)
Net interest on the net defined benefit asset/liability 5 2 (8) (1) 2 - (8) (6)
Actuarial (losses)/gains (28) 18 (1) (11) 25 26 1 52
Asset held for Sale - - - - - - - -
Other movement - - - - - (1) - (1)
Asset ceiling(3) - (4) - (4) - - - -
Exchange rate adjustment 6 1 (6) 1 (2) 3 7 8
Surplus/(Deficit) 68 (29) (185) (146) 78 1 (180) (101)
1 Includes administrative expenses paid out of plan assets of $1 million
(31 December 2024: $1 million).
2 Relates to provisional impact of regulatory change in India and RBAT court
ruling in Kenya.
3 Overseas plans include an asset ceiling in Kenya and a legacy Zimbabwe
arrangement, resulting from a restriction on the recognition of surplus.
Page 83
The Group's expected contribution to its defined benefit pension plans in 2026
is $83 million.
2025 2024
Assets Obligations Total Assets Obligations Total
$million $million $million $million $million $million
At 1 January 2,224 (2,325) (101) 2,119 (2,285) (166)
Contributions(1) 104 (10) 94 69 (1) 68
Current service cost(2) - (56) (56) - (52) (52)
Past service cost and curtailments - (67) (67) - (1) (1)
Settlement costs(3) - (1) (1) - (3) (3)
Interest cost on pension plan liabilities - (127) (127) - (103) (103)
Interest income on pension plan assets 126 - 126 97 - 97
Benefits paid out(2) (210) 210 - (169) 169 -
Actuarial gains/(losses)(4) 18 (29) (11) (46) 98 52
Asset held for sale - - - - - -
Other movement - - - 212 (213) (1)
Asset ceiling(5) (4) - (4) - - -
Exchange rate adjustment 84 (83) 1 (58) 66 8
At 31 December 2,342 (2,488) (146) 2,224 (2,325) (101)
1 Includes employee contributions of $11 million (31 December 2024: $1
million).
2 Includes administrative expenses paid out of plan assets of $1 million (31
December 2024: $1 million).
3 Impact of settlements relates to termination benefits in Indonesia.
4 Actuarial loss on obligation comprises $11 million loss (31 December 2024:
$127 million gain) from financial assumption changes, $1 million gain (31
December 2024: $1 million gain) from demographic assumption changes and $19
million loss (31 December 2024: $30 million loss) from experience.
5 Assets include a ceiling in Kenya and a legacy Zimbabwe arrangement,
resulting from a restriction on the recognition of surplus.
31. Share-based payments
Accounting policy
The Group operates equity-settled and cash-settled share-based compensation
plans. The fair value of the employee services (measured by the fair value of
the awards granted) received in exchange for the grant of the shares and
awards is recognised as an expense. For deferred share awards granted as part
of an annual performance award, the expense is recognised over the period from
the start of the performance period to the vesting date. For example, the
expense for three-year awards granted in 2025 in respect of 2024 performance,
which vest in 2026-2028, is recognised as an expense over the period from 1
January 2024 to the vesting dates in 2026-2028. For all other awards, the
expense is recognised over the period from the date of grant to the vesting
date.
For equity-settled awards, the total amount to be expensed over the vesting
period is determined by reference to the fair value of the shares and awards
at the date of grant, which excludes the impact of any non-market vesting
conditions (for example, profitability and growth targets). The fair value of
equity instruments granted is based on market prices, if available, at the
date of grant. In the absence of market prices, the fair value of the
instruments is estimated using an appropriate valuation technique, such as a
binomial option pricing model. Non-market vesting conditions are included in
assumptions for the number of shares and awards that are expected to vest.
At each balance sheet date, the Group revises its estimates of the number of
shares and awards that are expected to vest. It recognises the impact of the
revision of original estimates, if any, in the income statement and a
corresponding adjustment to equity over the remaining vesting period.
Forfeitures prior to vesting attributable to factors other than the failure to
satisfy service conditions and non-market vesting conditions are treated as a
cancellation and the remaining unamortised charge is debited to the income
statement at the time of cancellation. The proceeds received net of any
directly attributable transaction costs are credited to share capital (nominal
value) and share premium when awards in the form of options are exercised.
Cash-settled awards are revalued at each balance sheet date and a liability
recognised on the balance sheet for all unpaid amounts, with any changes in
fair value charged or credited to staff costs in the income statement until
the awards are exercised. Where forfeitures occur prior to vesting that are
attributable to factors other than a failure to satisfy service conditions or
market-based performance conditions, the cumulative charge incurred up to the
date of forfeiture is credited to the income statement.
Other accounting estimates and judgements
Share-based payments involve judgement and estimation uncertainty exists when
determining the expenses and carrying values of share awards at the balance
sheet date.
• LTIP awards are determined using an estimation of the probability of
meeting certain metrics over a three-year performance period using the Monte
Carlo simulation model.
• Deferred shares are determined using an estimation of expected
dividends.
• Sharesave Plan valuations are determined using a binomial option-pricing
model.
Page 84
The Group operates a number of share-based arrangements for its executive
directors and employees. Details of the share-based payment charge are set out
below.
2025¹ 2024¹
Cash Equity Total Cash Equity Total
$million $million $million $million $million $million
Deferred share awards 81 206 287 31 160 191
Other share awards 80 32 112 34 109 143
Total share-based payments(2) 161 238 399 65 269 334
1 No forfeiture assumed.
2 The total share-based payments charge during the year includes costs
relating to Business ventures. Business ventures are established as separate
legal entities with their own employee share ownership plans (ESOP) to attract
and incentivise talent. ESOPs have been set up with share-based payment
charges recorded in 2025 with $2 million (2024: $2 million) in cash settled
and $11 million (2024: $14 million) equity settled deferred awards spread
across 18 entities.
The Group determines both the grant and settlement date for all schemes, and
no option to determine grant or settlement date is available to employees.
No other principal subsidiaries have separate share schemes.
Discretionary share plans
The 2021 Standard Chartered Share Plan (the '2021 Plan') was approved by
shareholders in May 2021 and is the Group's main share plan, replacing the
2011 Standard Chartered Share Plan (the '2011 Plan') for new awards from June
2021. It is used to deliver various types of share awards to employees and
former employees of the Group, including directors and former
executive directors:
Award type Description and performance measures Valuation
Long Term Incentive Plan (LTIP) awards The vesting of awards granted in 2025, 2024 and 2023 are subject to the The fair value of the relative TSR component is calculated using the
following performance measures: probability of meeting the measures over a three-year performance period,
using a Monte Carlo simulation model.
• relative total shareholder return (TSR);
The value of the remaining components is based on the expected performance
• return on tangible equity (RoTE) (with a Common Equity Tier 1 (CET1) against the RoTE and strategic measures in the scorecard and the resulting
underpin); and estimated number of shares expected to vest at each reporting date. These
combined values are used to determine the accounting charge.
• strategic measures (including targets set for sustainability linked to
business strategy). No dividend equivalents accrue for the LTIP awards made in 2025, 2024, 2023 or
2022 and the fair value takes this into account, calculated by reference to
Each measure is assessed independently over a three-year period. LTIP awards market consensus dividend yield.
have an individual conduct gateway requirement that results in the award
lapsing if not met.
Vested awards are delivered in ordinary Standard Chartered PLC shares.
Deferred shares Used to deliver: The fair value for deferred shares, which are granted to employees who are not
categorised as material risk takers, is based on 100 per cent of the face
• the deferred portion of year-end variable remuneration, in line with value of the shares at the date of grant as the share price will reflect
both market practice and regulatory requirements. These awards vest in expectations of all future dividends.
instalments on anniversaries of the award date specified at the time of grant.
This enables the Group to meet regulatory requirements relating to deferral For awards granted to material risk takers in 2025, the fair value of awards
levels, and is in line with market practice. takes into account the lack of dividend equivalents, calculated by reference
to market consensus dividend yield.
• replacement buy-out awards to new joiners who forfeit awards on leaving
their previous employers. These vest in the quarter most closely following the
date when the award would have vested at the previous employer. This enables
the Group to meet regulatory requirements relating to buy-outs, and is in line
with market practice.
Deferred share awards are not subject to any performance measures.
Vested awards are delivered in ordinary Standard Chartered PLC shares.
The remaining life of the 2021 Standard Chartered Share Plan during which new
awards can be made is six years.
Page 85
LTIP awards
2025 2024
Grant date 12-May 12-March
Share price at grant date (£) 11.70 6.60
Vesting period (years) 3-7 3-7
Expected dividend yield (%) 3.5 4.2
Fair value (RoTE) (£) 2.86, 2.96, 3.06 1.55, 1.61, 1.68
Fair value (TSR) (£) 1.97, 2.04, 2.10 0.95, 1.01, 1.06
Fair value (Strategic) (£) 3.81, 3.94, 4.08 2.06, 2.15, 2.24
Deferred shares - year-end
2025
Grant date 17-Nov 24-Sep 12-May 14-Mar
Share price at grant date (£) 16.13 14.55 11.7 11.77
Vesting period (years) Expected dividend yield (%) Fair value Expected dividend yield (%) Fair value Expected dividend yield (%) Fair value Expected dividend yield (%) Fair value
(£) (£) (£) (£)
1-3 years N/A 20.49 N/A 18.48 N/A 14.86 N/A 14.95
1-5 years - - 2.5, 2.5, 2.5 16.95, 17.16, 17.37 3.5, 3.5, 3.5 13.18, 13.41, 13.64 3.3, 3.3, 3.3 13.34, 13.56, 13.78
3-7 years - - - - - - 3.3, 3.3 12.30, 12.71
Grant date 2024
17 June 11
Marc
h
Share price at grant date (£) 7.24 6.56
Vesting period (years) Expected Fair value Expected Fair value
dividend yield (£) dividend yield (£)
(%) (%)
1-3 years N/A 9.17 4.2, 4.2 7.65, 8.30
1-5 years 3.8, 3.8, 3.8 8.05, 8.20, 8.35 4.2, 4.2, N/A 7.19, 7.49, 8.30
3-7 years 4.2, 4.2 6.49, 6.76
Deferred shares - buy-outs
2025
Grant date 17-Nov 24-Sep 12-May 14-Mar
Share price at grant date (£) 16.13 14.55 11.7 11.77
Vesting period (years) Expected Fair value Expected Fair value Expected Fair value Expected Fair value
dividend yield (£) dividend yield (£) dividend yield (£) dividend yield (£)
(%) (%) (%) (%)
3 months 2.5 19.44 3.3 15.07
4 months 3.3 21.14 3.5 15.87
6 months 2.5 18.85, 19.09, 19.32
7 months 3.3 20.97
9 months 2.5 19.2
10 months 3.5 15.58
1 year 3.3 20.30, 20.46, 20.63 2.5 18.39, 18.62, 18.74, 18.85, 18.97, 19.09 3.5 15.06, 15.33, 15.44 3.3 14.59, 14.71
2 years 3.3 19.65, 19.81, 19.97 2.5 17.94, 18.17, 18.28, 18.39, 18.51, 18.62 3.5 14.92 3.3 14.12, 14.24
3 years 3.3 19.18, 19.33 2.5 17.72, 17.94, 18.17 3.5 14.41 3.3 13.78
4 years 2.5 17.51
5 years
Page 86
2024
Grant date 18-Nov 23-Sep 17-Jun 11-Mar
Share price at grant date (£) 9.43 7.59 7.24 6.56
Vesting Period (years) Expected Fair value Expected Fair value Expected Fair value Expected Fair value
dividend yield (£) dividend yield (£) dividend yield (£) dividend yield (£)
(%) (%) (%) (%)
3 months 4.2 9.59 3.8 9.07 4.2 8.22
4 months 4.2 11.83
6 months 4.2 9.49 3.8 8.99 4.2 8.14
7 months 4.2 11.69
9 months 4.2 9.4 3.8 8.90 4.2 8.06
10 months
1 year 4.2 11.22, 11.36 4.2 9.02, 9.11, 3.8 8.58, 8.66, 4.2 7.73, 7.81,
9.21, 9.30
8.74
7.89, 7.97
1.4 years
2 years 4.2 10.77, 10.90 4.2 8.65, 8.74, 3.8 8.26, 8.34 4.2 7.42, 7.50,
8.83, 8.93
7.57, 7.65
2.4 years
3 years 4.2 10.46, 4.2 8.39 4.2 7.20, 7.34
4 years 4.2 10.04 4.2 7.05
5 years
All Employee Sharesave Plans
Under the 2023 Sharesave Plan, employees may open a savings contract and save
up to £500 (increased from £250 since 2024) per month over three years to
purchase ordinary shares in the Company at a discount of up to 20 per cent
(the 'option exercise price'). The discount applies to the higher of: the
5-day average share price prior to the invitation or the closing share price
on the last trading day prior to the invitation. At the end of the savings
contract they have a period of six months to exercise the option. There are no
performance measures attached to Sharesave options, and no exercise price is
payable to receive an option. In some countries in which the Group operates,
it is not possible to operate equity-settled Sharesave, typically due to
securities law and regulatory restrictions. In these countries, where
possible, the Group offers an equivalent cash-based alternative to
its employees.
The remaining life of the 2023 Sharesave Plan during which new awards can be
made is eight years.
Valuation - Sharesave:
Options under the Sharesave plans are valued using a binomial option-pricing
model. The same fair value is applied to all employees including executive
directors. The fair value per option granted and the assumptions used in the
calculation are as follows:
All Employee Sharesave Plan (Sharesave)
2025 2024
Grant date 24 September 23 September
Share price at grant date (£) 14.55 7.59
Exercise price (£) 11.10 6.10
Vesting period (years) 3 3
Expected volatility (%) 31.2 32.9
Expected option life (years) 3.5 3.5
Risk-free rate (%) 3.98 3.88
Expected dividend yield (%) 2.5 4.2
Fair value (£) 6.49 2.73
The expected volatility is based on historical volatility over the last three
years, or the three years prior to grant. The expected life is the average
expected period to exercise. The risk-free rate of return is the yield on
zero-coupon UK Government bonds of a term consistent with the assumed option
life. The expected dividend yield is calculated by reference to market
consensus dividend yield.
Limits
An award shall not be granted under the 2021 Plan in any calendar year if, at
the time of its proposed grant, it would cause the number of Standard
Chartered PLC ordinary shares allocated in the period of 10 calendar years,
ending with that calendar year, under the 2021 Plan and under any other
discretionary share plan operated by Standard Chartered PLC to exceed 5 per
cent of the ordinary share capital of Standard Chartered PLC in issue at that
time.
An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in
any calendar year if, at the time of its proposed grant, it would cause the
number of Standard Chartered PLC ordinary shares allocated in the period of 10
calendar years ending with that calendar year, under the 2021 Plan or 2023
Sharesave Plan and under any other employee share plan operated by Standard
Chartered PLC to exceed 10 per cent of the ordinary share capital of Standard
Chartered PLC in issue at that time.
Page 87
An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in
any calendar year if, at the time of its proposed grant, it would cause the
number of Standard Chartered PLC ordinary shares which may be issued or
transferred pursuant to awards then outstanding under the 2021 Plan or 2023
Sharesave Plan as relevant to exceed such number as represents 10 per cent
of the ordinary share capital of Standard Chartered PLC in issue at that time.
The number of Standard Chartered PLC ordinary shares which may be issued
pursuant to awards granted to an individual under the 2021 or 2023 Plan in any
12-month period must not exceed 1 per cent of the ordinary share capital of
Standard Chartered PLC in issue at that time. There are no participants with
options and awards granted and to be granted in excess of the 1% individual
limit, and there are no related entity participants or service providers with
options and awards granted and to be granted in any 12-month period exceeding
0.1% of the relevant class of shares in issue (excluding treasury shares).
As at 1 January 2025 and 31 December 2025, the shareholder dilution under our
discretionary and Sharesave plans adopted by Standard Chartered PLC and its
subsidiaries represented 5.1 per cent and 5.1 per cent of the issued ordinary
share capital of Standard Chartered PLC respectively. Accordingly, the number
of Standard Chartered PLC shares available to be granted under all
discretionary and Sharesave plans at the beginning and the end of the year
ended 31 December 2025 were 123,504,051 and 115,091,962 respectively. As at 31
December 2025, the number of Standard Chartered PLC shares available to be
granted under the discretionary plan was 27,524,527 (1.2% of issued shares).
and 115,091,962 available to be granted under the Sharesave plan (5.1% of
issued shares).
The maximum number of Standard Chartered PLC shares that may be issued in
respect of share options and awards granted under the discretionary and
Sharesave plans during the year ended 31 December 2025 divided by the weighted
average number of Standard Chartered PLC shares in issue for the year ended 31
December 2025 is 1 per cent.
Standard Chartered PLC has been granted a waiver from strict compliance with
Rules 17.03A, 17.03B(1), 17.03E and 17.03(18) of the Rules Governing the
Listing of Securities on the Stock Exchange of Hong Kong. Details are set out
in the market announcement made on 30 March 2023. In relation to the waiver of
strict compliance with Note 1 to 17.03(18), in 2025 no changes to the plan
rules have been proposed that fall within scope of disclosure requirements
under the terms of the waiver.
Reconciliation of share award movements for the year to 31 December 2025
Discretionary(1) Sharesave(6,7) Weighted average Sharesave
exercise price
(£)
LTIP Deferred
shares
Outstanding at 1 January 2025 9,640,693 51,693,726 20,565,111 5.48
Granted(2,3,4) 2,159,737 16,143,146 4,926,740 -
Lapsed(8) (324,419) (713,633) (1,175,886) 6.20
Vested/Exercised(5) (1,272,072) (20,517,080) (1,227,776) 3.87
Outstanding at 31 December 2025 10,203,939 46,606,159 23,088,189 6.72
Total number of securities available for issue under the plan 10,203,939 46,606,159 23,088,189 6.72
Percentage of the issued shares this represents as at 31 December 2025 0.45 2.06 1.02 5.42
Exercisable as at 31 December 2025 - 90,903 82,613 5.42
Range of exercise prices (£) - - 4.23 - 11.10
Intrinsic value of vested but not exercised options ($ million) 0.00 2.23 1.42
Weighted average contractual remaining life (years) 7.14 8.00 2.06
Weighted average share price for awards exercised during the period (£) 11.78 11.75 11.50
1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute
to the cost of these awards.
2 2,159,737 (LTIP) granted on 12 May 2025. The closing price of the shares
immediately before the date on which the options or awards were granted was
£ 10.675.
3 14,537,101 (Deferred shares) granted on 14 March 2025. The closing price
of the shares immediately before the date on which the options or awards were
granted was £ 11.58. 141,397 (Deferred shares) granted as a notional dividend
on 27 March 2025; 333,619 (Deferred shares) granted on 12 May 2025; The
closing price of the shares immediately before the date on which the options
or awards were granted was £ 10.675. 48,376 (Deferred shares) granted as a
notional dividend on 28 August 2025. 921,595 (Deferred shares) granted on 24
September 2025. The closing price of the shares immediately before the date on
which the options or awards were granted was £ 14.545. 161,058 (Deferred
shares) granted on 17 November 2025. The closing price of the shares
immediately before the date on which the options or awards were granted was £
16.130.
4 No discretionary awards (LTIP or deferred/buy-out awards) have been
granted in the form of options since June 2015. For historic awards granted as
options and exercised in the period to 31 December 2025, the exercise price
of deferred/ buy-out shares options was nil.
5 The weighted average closing price of the shares immediately before the
dates on which the options or awards were exercised or vested is £11.87.
6 The exercise price of Sharesave grants are determined with a 20% discount
on the higher of the average closing price of the 5 days prior to invitation
date or the closing share price of the last day prior to invitation date. For
Sharesave options granted in 2025, the exercise price is £11.10 per share
calculated based on a 20% discount on £13.88 which was the average closing
price of the 5 days prior to invitation date of 18 August 2025.
7 All Sharesave awards are in the form of options. The exercise price of
Sharesave options exercised was £ 11.10 for options granted in 2025, £ 6.10
for options granted in 2024, £ 5.88 for options granted in 2023, £4.23 for
options granted in 2022.
8 No options or share awards were cancelled in the period.
See the Standard Chartered PLC Annual Report 2025 for information specific to
Directors
Page 88
Reconciliation of share award movements for the year to 31 December 2024
Discretionary(1) Sharesave(5,6) Weighted average Sharesave
exercise price
(£)
LTIP Deferred
shares
Outstanding at 1 January 2024 10,947,382 47,068,204 16,902,217 4.49
Granted(2,3) 2,320,695 25,712,216 9,707,454 -
Lapsed(7) (2,703,518) (1,431,969) (1,289,780) 4.88
Vested/Exercised(4) (923,866) (19,654,725) (4,754,780) 3.42
Outstanding at 31 December 2024 9,640,693 51,693,726 20,565,111 5.48
Total number of securities available for issue under the plan 9,640,693 51,693,726 20,565,111 5.48
Percentage of the issued shares this represents as at 31 December 2024 0.40 2.13 0.85
Exercisable as at 31 December 2024 - 250,094 1,121,867 3.78
Range of exercise prices (£)(3) - - 3.67 - 6.10
Intrinsic value of vested but not exercised options ($ million) 0.00 3.10 8.57
Weighted average contractual remaining life (years) 7.32 8.22 2.58
Weighted average share price for awards exercised during the period (£) 6.60 6.68 8.20
1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute
to the cost of these awards.
2 2,315,422 (LTIP) granted on 12 March 2024; 5,059 (LTIP) granted as a
notional dividend on 1 March 2024; 214 (LTIP) granted as a notional dividend
on
8 August 2024. 24,381,791 (Deferred shares) granted on 11 March 2024; 229,896
(Deferred shares) granted as a notional dividend on 1 March 2024; 463,694
(Deferred shares) granted on 17 June 2024; 86,702 (Deferred shares) granted as
a notional dividend on 8 August 2024; 287,533 (Deferred shares) granted on 23
September 2024; 262,600 (Deferred shares) granted on 18 November 2024;
9,707,454 (Sharesave) granted on 23 September 2024.
3 No discretionary awards (LTIP or deferred/buy-out awards) have been
granted in the form of options since June 2015. For historic awards granted as
options and exercised in the period to 31 December 2024, the exercise price of
deferred/ buy-out shares options was nil.
4 Share awards vested on 34 different dates in 2024 and the closing share
prices on the working days prior to the vesting dates ranged from £6.46 to
£9.91.
5 The exercise price of Sharesave grants are determined with a 20% discount
on the higher of the average closing price of the 5 days prior to invitation
date or the closing share price of the last day prior to invitation date. For
Sharesave options granted in 2024, the exercise price is £6.10 per share
calculated based on a 20% discount on £7.62 which was the closing price on
the day prior to invitation date of 19 August 2024.
6 All Sharesave awards are in the form of options. The exercise price of
Sharesave options is £ 6.10 for options granted in 2024 £ 5.88 for options
granted in 2023, £4.23 for options granted in 2022, £3.67 for options
granted in 2021 and £3.14 for options granted in 2020.
7 No options or share awards were cancelled in the period.
See pages 176 and 177 of the Standard Chartered PLC Annual Report 2024 for
information specific to Directors.
32. Investments in subsidiary undertakings, joint ventures and associates
Accounting policy
Associates and joint arrangements
The Group did not have any contractual interest in joint operations.
Investments in associates and joint ventures are accounted for by the equity
method of accounting and are initially recognised at cost. The Group's
investment in associates and joint ventures includes goodwill identified on
acquisition (net of any accumulated impairment loss).
The Group's share of its associates' and joint ventures' post-acquisition
profits or losses is recognised in the income statement, and its share of
post-acquisition movements in other comprehensive income is recognised in
reserves. The cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. When the Group's share of losses in an
associate or a joint venture equals or exceeds its interest in the associate,
including any other unsecured receivables, the Group does not recognise
further losses, unless it has incurred obligations or made payments on behalf
of the associate or joint venture.
Unrealised gains and losses on transactions between the Group and its
associates and joint ventures are eliminated to the extent of the Group's
interest in the associates and joint ventures. At each balance sheet date, the
Group assesses whether there is any objective evidence of impairment in the
investment in associates and joint ventures. Such evidence includes a
significant or prolonged decline in the fair value of the Group's investment
in an associate or joint venture below its cost, among other factors.
Significant accounting estimates and judgements
The Group applies judgement in determining if it has control, joint control or
significant influence over subsidiaries, joint ventures and associates
respectively. These judgements are based upon identifying the relevant
activities of counterparties, being those activities that significantly affect
the entities returns, and further making a decision of if the Group has
control over those entities, joint control, or has significant influence
(being the power to participate in the financial and operating policy
decisions but not control them).
These judgements are at times determined by equity holdings, and the voting
rights associated with those holdings. However, further considerations
including but not limited to board seats, advisory committee members and
specialist knowledge of some decision-makers are also taken into account.
Further judgement is required when determining if the Group has de-facto
control over an entity even though it may hold less than 50% of the voting
shares of that entity. Judgement is required to determine the relative size of
the Group's shareholding when compared to the size and dispersion of other
shareholders.
Page 89
Impairment testing of investments in associates and joint ventures, and on a
Company level investments in subsidiaries is performed if there is a possible
indicator of impairment. Judgement is used to determine if there is objective
evidence of impairment. Objective evidence may be observable data such as
losses incurred on the investment when applying the equity method, the
granting of concessions as a result of financial difficulty, or breaches of
contracts/regulatory fines of the associate or joint venture. Further
judgement is required when considering broader indicators of impairment such
as losses of active markets or ratings downgrades across key markets in which
the associate or joint venture operate in.
Impairment testing is based on estimates including forecasting the expected
cash flows from the investments, growth rates, terminal values and the
discount rate used in calculation of the present values of those cash flows.
The estimation of future cash flows and the level to which they are discounted
is inherently uncertain and requires significant judgement.
Business combinations
The acquisition method of accounting is used to account for the acquisition of
subsidiaries by the Group.
In the Company's financial statements, investment in subsidiaries, associates
and joint ventures are held at cost less impairment and dividends from
pre-acquisition profits received prior to 1 January 2009, if any.
Inter-company transactions, balances and unrealised gains and losses on
transactions between Group companies are eliminated in the Group accounts.
Standard Chartered PLC (Company) investments in subsidiary undertakings 2025 2024
$million $million
As at 1 January 61,593 60,791
Additions(1) 2,823 1,631
Disposal(2) (1,000) (803)
Other Movements(3) 26 (26)
As at 31 December 63,442 61,593
1 Includes internal AT1 issuances of $2,800 million by Standard Chartered
Bank (Hong Kong) and $23 million by Standard Chartered Holdings Ltd Limited
(31 December 2024: Includes internal AT1 issuances of $980 million by
Standard Chartered Bank, $600 million additional investment in Standard
Chartered Holdings Limited).
2 Includes redemption of AT1 capital of $1,000 million by Standard Chartered
Bank (Hong Kong) Limited (31 December 2024: redemption of preference share
capital of $553 million by Standard Chartered Bank Singapore Limited and
additional Tier 1 capital of $250 million by Standard Chartered Bank).
3 2025 movement related to reversal of realised translation gain $26 million
on redemption of AT1 securities of SGD 750 million ($553 million) upon
disposal. 2024 relates to realised translation gain ($26 million) on
redemption of AT1 securities of SGD 750 million ($553 million).
A complete list of subsidiary undertakings is included in Note 41.
During 2025 the Group disposed of its indirectly held investments in
subsidiaries and the gain/loss on disposal were Standard Chartered Research
and Technology India Private Limited (gain: $238 million including translation
adjustment loss: $3 million), Fourtwothree Pte. Ltd (gain: $1.8 million),
Standard Chartered Bank Gambia Limited (loss: $5.4 million including
translation adjustment loss: $8 million), Standard Chartered Bank Cameroon
S.A. (loss: $5.3 million including translation adjustment loss: $9 million)
and Tawi Fresh Kenya Limited (loss: $0.5 million).
While the Group's subsidiaries are subject to local statutory capital and
liquidity requirements in relation to foreign exchange remittance, these
restrictions arise in the normal course of business and do not significantly
restrict the Group's ability to access or use assets and settle liabilities of
the Group.
The Group does not have significant restrictions on its ability to access or
use its assets and settle its liabilities other than those resulting from the
regulatory framework within which the banking subsidiaries operate. These
frameworks require banking operations to keep certain levels of regulatory
capital, liquid assets, exposure limits and comply with other required ratios.
These restrictions are summarised below:
Regulatory and liquidity requirements
The Group's subsidiaries are required to maintain minimum capital, leverage
ratios, liquidity and exposure ratios which therefore restrict the ability of
these subsidiaries to distribute cash or other assets to the parent company.
The subsidiaries are also required to maintain balances with central banks and
other regulatory authorities in the countries in which they operate. At 31
December 2025, the total cash and balances with central banks was $78 billion
(31 December 2024: $63 billion) of which $12 billion (31 December 2024: $8
billion) is restricted.
Statutory requirements
The Group's subsidiaries are subject to statutory requirements not to make
distributions of capital and unrealised profits to the parent company,
generally to maintain solvency. These requirements restrict the ability of
subsidiaries to remit dividends to the Group. Certain subsidiaries are also
subject to local exchange control regulations which provide for restrictions
on exporting capital from the country other than through normal dividends.
Page 90
Contractual requirements
The encumbered assets in the balance sheet of the Group's subsidiaries are not
available for transfer around the Group.
Share of profit from investment in associates and joint ventures comprises:
2025 2024
$million $million
Loss from Investment in Joint Ventures (13) (10)
Profit from Investment in Associates 75 118
Total 62 108
Interests in associates and joint ventures 2025 2024
$million $million
As at 1 January 1,020 966
Exchange translation difference 64 (40)
Additions(1) 370 22
Share of profits 88 108
Dividend received(2) (47) (36)
Impairment(3) (41) -
Share of FVOCI and Other reserves (28) 9
Other movements - (9)
As at 31 December 1,426 1,020
1 Includes investment in Jumbotail Technologies Private Limited for $344
million.
2 Includes $45 million capital distribution from Ascenta IV.
3 Includes $15 million impairment of SBI Zodia Custody Company Limited, $26
million relating to Group's share of Profits from Bohai recognised in Q4 2025.
Material Associates
A complete list of the Group's interest in associates is included in note 41.
Summarised below are those considered material:
Jumbotail Technologies Private Ltd (JTPL)
On acquisition through the SCRTIPL transaction (refer to Note 6), the Group
acquired a 46.55 per cent shareholding in JTPL, a company incorporated in
India. The carrying value as of 31 December 2025 was $344 million. JTPL is
engaged in business-to-business e-commerce. As a result of the acquisition,
the Group has significant influence over the investee through its shareholding
and accounts for its interest based on the application of the equity method.
The Group's share of the associate's results since acquisition are immaterial.
China Bohai Bank
The Group's ownership percentage in China Bohai Bank is 16.26%.
Although the Group's investment in China Bohai Bank is less than 20 per cent,
it is an associate because of the significant influence the Group can exercise
over its management and financial and operating policies. This influence is
exercised through Board representation and the provision of technical
expertise to Bohai. The Group applies the equity method of accounting for
investments in associates.
If the Group did not have significant influence over Bohai, the investment
would be measured at fair value rather than the current carrying value, which
is based on the application of the equity method as described in the
accounting policy note.
Bohai publishes their results after the Group. As it is impracticable for
Bohai to prepare financial statements sooner, the Group recognises its share
of Bohai's earnings on a three-month lag basis. Therefore, the Group
recognised its share of Bohai's profits and movements in other comprehensive
income from 1 October 2024 through 30 September 2025 (one year of earnings) in
the Group's consolidated statement of income and consolidated statement of
comprehensive income for the year ended 31 December 2025, also considering any
known changes or events in the subsequent period from 1 October 2025 to 31
December 2025 that would have materially affected Bohai's results.
Impairment testing
On 31 December 2025, the listed equity value of Bohai is below the carrying
amount of the Group's investment in associate. The Group has assessed that the
investment in Bohai remains impaired until there is greater clarity around the
macroeconomic outlook in China and the resumption of dividends by Bohai. The
Group also assessed the carrying value of its investment in Bohai for
impairment and, considering that the investment cannot be recognised at a
carrying amount higher than its recoverable amount at the reporting date, has
not recognised the Group's share of Bohai's profit for the final quarter of
2025 ($26 million). Accumulated impairment is $1,485 million as at 31 December
2025 ($Nil impairment charge for the year ended 31 December 2024; $1,459
million of accumulated impairment as at 31 December 2024). The financial
forecasts used to estimate the recoverable amount, a VIU calculation, reflects
Group management's best estimate of Bohai's future earnings, in line with
current economic conditions and Bohai's latest reported results.
Page 91
The carrying value of the Group's investment in Bohai of $883 million (2024:
$738 million) represents the higher of the value in use and fair value less
costs of disposal. The $145 million increase to the carrying amount during
2025 reflects the Group's share of profits of $113 million (which is net of
AT1 dividends of $6 million and $26 million of impairment); other
comprehensive loss of $35 million and net of foreign exchange profits of $67
million.
The Group's share of profits and the 2025 impairment are included in 'Profit
from associates and joint ventures' on the Consolidated Income Statement.
Bohai 31.12.25 31.12.24
$million
$million
VIU 883 738
Carrying amount(1) 883 738
Market capitalisation(2) 360 338
1 The Group's 16.26% share in the net assets less other equity instruments
which the Group does not hold.
2 Number of shares held by the Group multiplied by the quoted share price at
period end.
Basis of recoverable amount
The impairment test was performed by comparing the recoverable amount of
Bohai, determined as the higher of VIU and fair value less costs to dispose,
with its carrying amount.
The VIU is calculated using a dividend discount model (DDM), which estimates
the distributable future cashflows to the equity holders, after adjusting for
regulatory capital requirements, for a 5 year period, after which a terminal
value (TV) is calculated based on the Price to Earnings (P/E) exit multiple.
The key assumptions in the VIU are as follows:
• Short to medium term projections are based on Group management's best
estimates of future profits available to ordinary shareholders and have been
determined with reference to the latest published financial results, the
historical performance of Bohai and forward looking macro-economic variables
for China.
• The projections use available information and include normalised
performance over the forecast period, inclusive of: (i) balance sheet growth
assumptions based on the short to medium term GDP growth rates for China; (ii)
Net Interest Income (NII) projecting interest income (primarily the 1-year
Loan Prime Rate, 1-year LPR, as basis) and interest expense (Shanghai
Interbank Offered Rate, 3m SHIBOR, as basis) which reference forecasted
third-party market interest rates, adjusted for the observed historic spread
against the benchmark rate; (iii) Non-interest income estimated according to
the latest available performance of Bohai, with consideration of the
contribution of the constituent parts of the non-interest income; (iv)
Operating expense based on historical performance of Bohai and growth
consistent with the short to medium term GDP growth rates applied to balance
sheet projections; (v) ECL assumptions using Bohai's historical reported ECL,
based on the proportion of ECL from loans and advances to customers and
financial investments measured at amortised cost and FVOCI; and (vi) Statutory
tax rate of 25% was applied to the taxable profit of Bohai, after
consideration of taxable and non-taxable elements, consistent with historical
reported results;
• The distributable reserves under the DDM are calculated as the
difference between the capital resources and the capital requirements in each
of the forecast periods. The calculation assumes a target CET1 capital ratio
and risk weighted asset (RWA) growth consistent with total assets.
• The discount rate applied to these cash flows was estimated with
reference to a capital asset pricing model (CAPM), which includes a long-term
risk-free rate, beta, and company risk premium assumptions for Bohai; and
• A long-term average P/E multiple of comparable companies is used to
derive a TV after the five year forecast period.
The VIU model was refined during 2025 to include more granular forecasting
assumptions for each period. While it is impracticable for the Group to
estimate the impact on future periods, the key changes to the 2025 model are
summarised as follows:
• The Group continues to calculate non-interest income with reference to
the five components, i.e., net gains on financial investments through P/L, net
gains on financial investments through OCI, net fee and commission income, net
trading income and other income. All components of non-interest income
continue to be grown by the relevant GDP rate for China over the forecasted
period. However, the Group changed the returns forecasted for the financial
investments through P/L over the forecast period, by using the most recent
reported returns as the starting point, normalising such returns to a
long-term average over the forecast period. Previously, the return of this
component of non-interest income was normalised to the long-term average from
the start of the forecast period (year 1), and then grown according to
relevant GDP rate of China. As a result of this change, the year 1 total
forecasted non-interest income is more aligned to the recently reported
results, but due to the normalisation affect, the implied growth is
negligible.
Page 92
The key assumptions used for the VIU calculation:
31.12.25 31.12.24
Post-tax discount rate(1) 10.0% 10.5%
Total balance-sheet (and risk weighted assets) growth rate 3.33% - 4.59% 3.77% - 4.52%
P/E multiple used to calculate TV 5.7x 5.6x
Interest income(2) 3.12% - 3.20% 3.00% - 3.56%
Interest expense(2) 1.78% - 1.85% 1.77% - 2.01%
Non-interest income - financial investments return 2.24% - 3.55% 1.91%
Other non-interest income growth rate 3.33% - 4.59% 3.77% - 4.52%
Operating expense(3) 3.33% - 4.59% 3.77% - 4.52%
Expected credit losses as a percentage of customer loans(4) 0.77% 0.84% - 1.36%
Expected credit losses as a percentage of financial investments measured at 0.57% 0.48% - 1.26%
amortised cost and FVOCI(4)
Effective tax rate(5) 12.77% - 12.96% 5.4% - 14.1%
Capital maintenance ratio 8.00% 8.00%
1 Pre-tax discount rate of 15.87 per cent was used in 2025 (2024: 15.31
per cent). The difference in pre-tax discount rates relates to changes in
effective tax rate.
2 One-year LPR and three-month SHIBOR rate forecasts were sourced from an
external third-party provider, and with a spread derived from long-term
historical averages, are used to produce the interest income and interest
expense forecasts.
3 As at 31 December 2025, a growth rate of 4.86 per cent was applied to the
FY 2024 operating expense base, the rate being derived from the projected
GDP growth rate for China in 2025. In the prior year the operating expense
base was the annualised H1 2024 balance, applying apportioned growth rate
assumptions. The current year approach results in higher forecasted operating
expenses.
4 As 31 December 2024 the low end of the range was based on historical loss
rates, and the high end of the range, applied in one of the forecast years,
included adjustments for incremental judgemental management overlays. As at 31
December 2025 the ECL assumption is based on historical loss rates with an
adjustment for incremental judgemental management overlays, applied over the
five-year forecast period.
5 The tax rates disclosed are the implied effective tax rates (per cent)
over the five-year forecast period. The 31 December 2025 tax expense
forecasts,
calculated from the taxable profit, considered the long-term historical
average of non-taxable income of 17.18 per cent (2024: 16.09 per cent) and
non-deductible expenses of 14.56 per cent (2024: 12.53 per cent). A
statutory tax rate of 25 per cent was applied to the taxable profit of Bohai,
after
consideration of taxable and non-taxable elements.
The table below discloses sensitivities to the key assumptions of Bohai,
according to management's judgement of reasonably possible changes. Changes
were applied to every cash flow year on an individual basis. The percentage
change to the assumptions reflects the level at which management assess the
reasonableness of the assumptions used and their impact on the Value in Use.
Sensitivities(1) basis points Key assumption Key assumption
increase
decrease
Increase/ Increase/
(decrease)
(decrease)
in VIU
in VIU
$ million
$ million
Discount Rate 100 (31) 33
Total balance sheet (and risk weighted asset) growth rate(2) 100 (40) 38
P/E multiple used to calculate TV 1.0x 112 (112)
Net interest income - Scenario 1(3) 10 (19) 19
Net interest income - Scenario 2(4) Various(4) 375 (234)
Non-interest income - financial investments return 100 295 (295)
Other non-interest income growth rate 100 54 (52)
Operating expense 100 (70) 68
Expected credit losses as a percentage of customer loans 10 (147) 147
Expected credit losses as a percentage of financial investments measured at 10 (86) 85
amortised cost and FVOCI
Tax expense(5) 300 27 (28)
Capital maintenance ratio 50 (25) 25
1 For comparative information as at 31 December 2024, refer to page 365 of
the Group's Annual Report 2024.
2 The sensitivity reflects the net impact of changing this assumption in the
VIU, which links to various elements in forecast profit and regulatory capital
adjustment.
3 This scenario assumes that one-year LPR and three-month SHIBOR increase or
decrease by the same amount, to demonstrate the impact on the carrying amount
of a similar scenario.
4 An alternative scenario is that Bohai's asset yield and liability cost
move in the same direction, albeit by different amounts, through the five-year
forecast period including the terminal value. The key assumption increase
sensitivity assumes that asset yields increase by 25 basis points and
liability costs increase by 10 basis points in each period. The key assumption
decrease sensitivity assumes that asset yields decrease by 25 basis points and
liability costs decrease by 15 basis points in each period.
5 Changes in tax expense applied only to both average percentages of
non-taxable income (17.18 per cent) and non-deductible expenses (14.56 per
cent). Refer to footnote 5 of the key assumptions table for more details.
Page 93
The following table sets out the summarised financial statements of China
Bohai Bank prior to the Group's share of the associate's profit being applied:
30.09.25 30.09.24
$million $million
Total assets 272,513 244,510
Total liabilities 256,337 229,259
Operating income(1) 3,472 3,583
Net profit(1) 762 681
Other comprehensive income(1) (219) 69
1 This represents twelve months of earnings (1 October to 30 September).
33. Structured entities
Accounting policy
Structured entities are consolidated when the substance of the relationship
between the Group and the structured entity indicates the Group has power over
the contractual relevant activities of the structured entity, is exposed to
variable returns, and can use that power to affect the variable return
exposure.
In determining whether to consolidate a structured entity to which assets have
been transferred, the Group takes into account its ability to direct the
relevant activities of the structured entity. These relevant activities are
generally evidenced through a unilateral right to liquidate the structured
entity, investment in a substantial proportion of the securities issued by the
structured entity or where the Group holds specific subordinate securities
that embody certain controlling rights. The Group may further consider
relevant activities embedded within contractual arrangements such as call
options which give the practical ability to direct the entity, special
relationships between the structured entity and investors, and if a single
investor has a large exposure to variable returns of the structured entity.
Judgement is required in determining control over structured entities. The
purpose and design of the entity is considered, along with a determination of
what the relevant activities are of the entity and who directs these. Further
judgements are made around which investor is exposed to and absorbs the
variable returns of the structured entity. The Group will have to weigh up all
of these facts to consider whether the Group, or another involved party is
acting as a principal in its own right or as an agent on behalf of others.
Judgement is further required in the ongoing assessment of control over
structured entities, specifically if market conditions have an effect on the
variable return exposure of different investors.
Interests in consolidated structured entities: A structured entity is
consolidated into the Group's financial statements where the Group controls
the structured entity, as per the determination in the accounting policy
above.
The following table presents the Group's interests in consolidated structured
entities.
2025 2024
$million $million
Shipping lease 17 14
Principal and other structured finance 592 474
Total 609 488
Interests in unconsolidated structured entities: Unconsolidated structured
entities are all structured entities that are not controlled by the Group. The
Group enters transactions with unconsolidated structured entities in the
normal course of business to facilitate customer transactions and for specific
investment opportunities. An interest in a structured entity is contractual
or non-contractual involvement which creates variability of the returns of
the Group arising from the performance of the structured entity.
The table below presents the carrying amount of the assets recognised in the
financial statements relating to variable interests held in unconsolidated
structured entities, the maximum exposure to loss relating to those interests
and the total assets of the structured entities. Maximum exposure to loss is
primarily limited to the carrying amount of the Group's on-balance sheet
exposure to the structured entity. For derivatives, the maximum exposure to
loss represents the on-balance sheet valuation and not the notional amount.
For commitments and guarantees, the maximum exposure to loss is the notional
amount of potential future losses.
Page 94
2025 2024
Asset-backed securities Lending Structured Finance Principal Finance funds Other activities Total Asset-backed securities Lending Structured Finance Principal Finance funds Other activities Total
$million $million $million $million $million $million $million $million $million $million $million $million
Group's interest - assets
Financial assets held at fair value through profit or loss 2,143 457 200 91 - 2,891 1,222 255 178 124 - 1,779
Loans and advances/Investment securities at amortised cost 15,312 22,462 14,201 - 107 52,082 16,305 16,735 12,656 - 97 45,793
Investment securities (fair value through other comprehensive income) 1,227 - - - - 1,227 2,371 - - - - 2,371
Other assets - 8 12 - - 20 - - 1 - - 1
Total assets 18,682 22,927 14,413 91 107 56,220 19,898 16,990 12,835 124 97 49,944
Off-balance sheet 151 17,128 7,471 24 32 24,806 - 11,075 6,901 63 73 18,112
Group's maximum exposure to loss 18,833 40,055 21,884 115 139 81,026 19,898 28,065 19,736 187 170 68,056
Total assets of structured entities 183,418 24,153 17,802 186 - 225,559 129,864 17,579 14,758 226 - 162,427
The main types of activities for which the Group utilises unconsolidated
structured entities cover synthetic credit default swaps for managed
investment funds (including specialised Principal Finance funds), portfolio
management purposes, structured finance and asset-backed securities. These are
detailed as follows:
• Asset-backed securities (ABS): The Group also has investments in
asset-backed securities issued by third-party sponsored and managed structured
entities. For the purpose of market making and at the discretion of ABS
trading desk, the Group may hold an immaterial amount of debt securities from
structured entities originated by credit portfolio management. This is
disclosed in the ABS column above.
• Portfolio management (Group sponsored entities): For the purposes of
portfolio management, the Group purchased credit protection via synthetic
credit default swaps from note-issuing structured entities. This credit
protection creates credit risk which the structured entity and subsequently
the end investor absorbs. The referenced assets remain on the Group's balance
sheet as they are not assigned to these structured entities. The Group
continues to own or hold all of the risks and returns relating to these
assets. The credit protection obtained from the regulatory-compliant
securitisation only serves to protect the Group against losses upon the
occurrence of eligible credit events and the underlying assets are not
derecognised from the Group's balance sheet. The Group does not hold any
equity interests in the structured entities, but may hold an insignificant
amount of the issued notes for market making purposes. This is disclosed in
the ABS section above. The proceeds of the notes' issuance are typically held
as cash collateral in the issuer's account operated by a trustee or invested
in AAA-rated government-backed securities to collateralise the structured
entities swap obligations to the Group, and to repay the principal to
investors at maturity. The structured entities reimburse the Group on actual
losses incurred, through the use of the cash collateral or realisation of the
collateral security. Correspondingly, the structured entities write down the
notes issued by an equal amount of the losses incurred, in reverse order of
seniority. All funding is committed for the life of these vehicles and the
Group has no indirect exposure in respect of the vehicles' liquidity position.
The Group has reputational risk in respect of certain portfolio management
vehicles and investment funds either because the Group is the arranger and
lead manager or because the structured entities have Standard Chartered
branding.
• Lending: Lending comprises secured lending in the normal course of
business to third parties through structured entities
• Structured finance: Structured finance comprises interests in
transactions that the Group or, more usually, a customer has structured, using
one or more structured entities, which provide beneficial arrangements for
customers. The Group's exposure primarily represents the provision of funding
to these structures as a financial intermediary, for which it receives a
lender's return. The transactions largely relate to real estate financing and
the provision of aircraft leasing and ship finance.
• Principal Finance Fund: The Group's exposure to Principal Finance Funds
represents committed or invested capital in unleveraged investment funds,
primarily investing in pan-Asian infrastructure, real estate and private
equity.
• Other activities: Other activities include structured entities created
to support margin financing transactions, the refinancing of existing credit
and debt facilities, as well as setting up of bankruptcy remote structured
entities.
In the above table, the Group determined the total assets of the structured
entities using following bases:
• Asset Backed Securities, Principal Finance, and other activities are
based on the published total assets of the structured entities.
• Lending and Structured Finance are estimated based on the Group's loan
values to the structured entities.
Page 95
34. Cash flow statement
Adjustment for non-cash items and other adjustments included within income statement
Group Company
2025 2024 2025 2024
$million $million $million $million
Amortisation of discounts and premiums of investment securities (740) (815) - -
Interest expense on subordinated liabilities 552 744 471 578
Interest expense on senior debt securities in issue 2,392 2,584 1,777 1,855
Other non-cash items (152) (122) (3) (12)
Net (gain)/loss on sale of business (242) 210 - -
Pension costs for defined benefit schemes 125 62 - -
Share-based payment costs 399 334 - -
Impairment losses on loans and advances and other credit risk provisions 672 547 - -
Dividend income from subsidiaries - - (5,160) (4,101)
Other impairment 65 588 - -
Gain on disposal of property, plant and equipment (133) (23) - -
Loss on disposal of FVOCI and AMCST financial assets 53 264 - -
Depreciation and amortisation 1,170 1,126 - -
Fair value changes taken to income statement (2,027) (2,140) (53) 9
Foreign Currency revaluation (87) (583) (115) 1
Profit from associates and joint ventures (62) (108) - -
Total 1,985 2,668 (3,083) (1,670)
Change in operating assets
2025 2024 2025 2024
$million $million $million $million
Decrease/(increase) in derivative financial instruments 16,161 (31,939) (127) (32)
(Increase)/decrease in debt securities, treasury bills and equity shares held (3,900) (25,823) 4,198 376
at fair value through profit or loss
Increase in loans and advances to banks and customers (11,949) (13,776) - -
Net decrease/(increase) in prepayments and accrued income 189 (224) - -
Net (increase)/decrease in other assets (28,629) 5,331 (5,305) 338
Total (28,128) (66,431) (1,234) 682
Change in operating liabilities
2025 2024 2025 2024
$million $million $million (Restated)(1)
$million
(Decrease)/ increase in derivative financial instruments (14,304) 26,951 (288) (39)
Net increase in deposits from banks, customer accounts, debt securities in 71,370 7,253 2,083 1,340
issue, Hong Kong notes in circulation and short positions
Increase in accruals and deferred income 340 79 98 101
Net increase/ (decrease) in other liabilities 513 5,090 (129) (1,574)
Increase in amount due to parents/subsidiaries/other related parties - - 190 35
Total 57,919 39,373 1,954 (137)
1. Prior Period has been restated to exclude Debt Securities in Issue
designated at fair value through P&L. Net increase in deposits from banks,
customer accounts, debt securities in issue, Hong Kong notes in circulation
and short positions for 2024 has been restated by $727 million.
Page 96
Changes in liabilities arising from financing activities
Group Company
2025 2024 2025 2024
$million $million $million $million
Subordinated debt (including accrued interest):
Opening balance 10,536 12,216 10,491 12,123
Interest paid (421) (519) (410) (505)
Repayment (2,174) (1,517) (2,174) (1,517)
Foreign exchange movements 345 (191) 346 (190)
Fair value changes from hedge accounting 275 48 174 97
Accrued interest and Others 410 499 391 483
Closing balance 8,971 10,536 8,818 10,491
(Restated)(1)
Senior debt (including accrued interest):
Opening balance 40,576 41,350 32,835 31,525
Proceeds from the issue 11,583 11,044 7,955 7,422
Interest paid (1,892) (1,366) (1,576) (1,367)
Repayment (9,364) (11,185) (4,752) (6,222)
Foreign exchange movements 692 (454) 664 (343)
Fair value changes from hedge accounting 403 42 663 321
Accrued interest and Others 2,001 1,145 1,700 1,499
Closing balance 43,999 40,576 37,489 32,835
1. Prior Year has been restated to include Debt Securities in Issue
designated at fair value through P&L. Opening balance and Closing balance
has increased by $14,007 million and $14,175 million respectively. Other
related changes include increases in proceeds from issue of $3,535 million,
interest paid of $659 million, repayment of $3,603 million, fair value changes
from hedge accounting of $315 million and accrued interest and others of $675
million.
Senior debt is presented as part of debt securities in issue in the Group and
Company balance sheets. Of the $11.6 billion proceeds from issue of senior
debt issued by the Group, $7.9 billion relates to senior debt issued by the
Company and $3.7 billion relates to senior debt issued by the Company's
subsidiaries.
35. Cash and cash equivalents
Accounting policy
Cash and cash equivalents includes:
• Cash on hand and balances at central banks' that are on demand or
placements which are contractually due to mature overnight only, except for
restricted balances; and
• Other balances listed in the table below, when they have less than three
months' maturity from the date of acquisition, are not subject to contractual
restrictions, are subject to insignificant changes in value, are highly liquid
and are held for the purpose of meeting short-term cash commitments. This
includes products such as treasury bills and other eligible bills, short-term
government securities, loans and advances to banks (including reverse repos),
and loans and advances to customers (only non demand or non overnight
placements at central banks), which are held for appropriate business
purposes. On demand accounts with non central banks are reported as part of
'Loans & advances to banks'.
Group Company
2025 2024 2025 2024
$million $million $million $million
Cash and balances at central banks 77,746 63,447 - -
Less: restricted balances (11,630) (7,799) - -
Treasury bills and other eligible bills 15,294 5,472 - -
Loans and advances to banks 8,973 9,654 - -
Loans and advances to Customers 13,335 18,120 - -
Investments 1,204 1,034 - -
Amounts owed by and due to subsidiary undertakings - - 15,226 11,601
Total 104,922 89,928 15,226 11,601
Page 97
36. Related party transactions
Directors and officers
Details of directors' remuneration and interests in shares are disclosed in
the Directors' remuneration report.
IAS 24 Related party disclosures requires the following additional information
for key management compensation. Key management comprises non-executive
directors, executive directors of Standard Chartered PLC, the Court directors
of Standard Chartered Bank and the persons discharging managerial
responsibilities (PDMR) of Standard Chartered PLC.
2025(1) 2024
$million $million
Salaries, allowances and benefits in kind 47 41
Share-based payments 40 38
Bonuses paid or receivable - 7
Termination benefits - 2
Total 87 88
1 Following the Prudential Regulation Authority (PRA) publication of
revised remuneration regulations on 15 October 2025, we have changed the
structure of variable remuneration from 2025 onwards. This is reflected in the
table above, with the value split between Salaries, allowances and benefit in
kind and share based payments in line with IAS 24.
Transactions with directors and others
At 31 December 2025, the total amounts to be disclosed under the Companies Act
2006 (the Act) and the Listing Rules of the Hong Kong Stock Exchange Limited
(Hong Kong Listing Rules) about loans to directors were as follows:
2025 2024
$million $million
Advances and credits 4 -
Deposits 32 -
Directors and officers have banking relationships with Group companies which
are entered into in the normal course of business and on substantially the
same terms as for comparable transactions with other persons of a similar
standing or, where applicable, with other employees within limits acceptable
to the PRA. These transactions did not involve more than the normal risk of
repayment or present other unfavourable features. The loan transactions
provided to the directors of Standard Chartered PLC were a connected
transaction under Chapter 14A of the Hong Kong Listing Rules. It was fully
exempt as financial assistance under Rule 14A.87(1), as it was provided in our
ordinary and usual course of business and on normal commercial terms.
As at 31 December 2025, Standard Chartered Bank had in place a charge over $69
million (31 December 2024: $68 million) of cash assets in favour of the
independent trustee of its employer financed retirement benefit scheme.
Other than as disclosed in the Annual Report and Accounts, there were no other
transactions, arrangements or agreements outstanding for any director,
connected person or officer of the Company which have to be disclosed under
the Act, the rules of the UK Listing Authority or the Hong Kong Listing
Rules.
Details of non-revenue transactions with Temasek Holdings (Private) Limited
are set out in Directors' report.
Company
The Company has received $1,724 million (31 December 2024: $1,838 million) of
net interest income from its subsidiaries. The Company issues debt externally
and lends proceeds to Group companies.
The Company has an agreement with Standard Chartered Bank that in the event of
Standard Chartered Bank defaulting on its debt coupon interest payments,
where the terms of such debt requires it, the Company shall issue shares as
settlement for non-payment of the coupon interest.
2025 2024
Standard Standard Others(1) Standard Standard Others(1)
Chartered Bank
Chartered Bank (Hong Kong) Limited
Chartered Bank
Chartered Bank (Hong Kong)
$million
Limited $million
$million $million $million
$million
Assets
Due from subsidiaries 14,816 141 270 11,318 135 147
Derivative financial instruments 228 - - 98 - -
Debt securities 16,605 5,875 904 18,124 5,512 1,221
Total assets 31,649 6,016 1,174 29,540 5,647 1,368
Liabilities
Due to subsidiaries 225 - - - - -
Derivative financial instruments 777 26 - 1,042 23 -
Total liabilities 1,002 26 - 1,042 23 -
1 Others include Standard Chartered Bank (Singapore) Limited, Standard
Chartered Holdings Limited and Standard Chartered I H Limited.
Page 98
Associate and joint ventures
2025 2024
$million $million
Assets
Financial Assets held at FVTPL 10 -
Derivative assets 5 5
Total assets 15 5
Liabilities
Deposits 416 209
Derivative liabilities 3 4
Total liabilities 419 213
Loan commitments and other guarantees¹ 107 14
1 The maximum loan commitments and other guarantees during the period were
$107 million (31 December 2024: $14 million).
37. Post balance sheet events
A share buyback for up to a maximum consideration of $1.5 billion has been
declared by the directors after 31 December 2025. This will reduce the number
of ordinary shares in issue by cancelling the repurchased shares.
A final dividend for 2025 of 49 cents per ordinary share was declared by the
directors after 31 December 2025.
38. Auditor's remuneration
Auditor's remuneration is included within other general administration
expenses. The amounts paid by the Group to their principal auditor, Ernst
& Young LLP and its associates (together Ernst & Young LLP), are set
out below. All services are approved by the Group Audit Committee and are
subject to controls to ensure the external auditor's independence is
unaffected by the provision of other services.
2025 2024
$million $million
Audit fees for the Group statutory audit 36.9 31.3
Of which fees for the audit of Standard Chartered Bank Group 27.3 23.2
Fees payable to EY for other services provided to the SC PLC Group:
Audit of Standard Chartered PLC subsidiaries 14.5 13.5
Total audit fees 51.4 44.8
Audit-related assurance services 7.7 6.6
Other assurance services 5.8 5.4
Other non-audit services 1.3 0.4
Transaction related services 0.6 0.6
Total non-audit fees 15.4 13.0
Total fees payable 66.8 57.8
The following is a description of the type of services included within the
categories listed above:
• Audit fees for the Group statutory audit are in respect of fees payable
to Ernst & Young LLP for the statutory audit of the consolidated financial
statements of the Group and the separate financial statements of Standard
Chartered PLC
• Audit-related fees consist of fees such as those for services required
by law or regulation to be provided by the auditor, reviews of interim
financial information, reporting on regulatory returns, reporting to a
regulator on client assets and extended work performed over financial
information and controls authorised by those charged with governance
• Other assurance services include agreed-upon-procedures in relation to
statutory and regulatory filings
• Transaction related services are fees payable to Ernst & Young LLP
for issuing comfort letters
Expenses incurred in respect of their role as auditor, were reimbursed to EY
LLP $1 million (2024: $1 million).
Page 99
39. Standard Chartered PLC (Company)
Classification and measurement of financial instruments
Financial assets 2025 2024
Derivatives held for hedging Amortised cost Non-trading mandatorily at fair value through profit or loss Total Derivatives Amortised cost Non-trading mandatorily at fair value through profit Total
held for hedging
or loss
$million $million $million $million
$million
$million
$million $million
Financial assets held at fair value through profit or loss
Investment securities - - 18,475(1) 18,475 - - 19,049¹ 19,049
Derivatives 239 - - 239 112 - - 112
Investment securities - 4,904 - 4,904 - 5,808 - 5,808
Amounts owed by subsidiary undertakings - 15,226 - 15,226 - 11,601 - 11,601
Total 239 20,130 18,475 38,844 112 17,409 19,049 36,570
1 Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Limited,
Standard Chartered Bank (China) Limited and Standard Chartered Bank
(Singapore) Limited issued Loss Absorbing Capacity (LAC) eligible debt
securities.
Instruments classified as amortised cost, which include investment securities
and amounts owed by subsidiary undertakings, are recorded in stage 1 for the
recognition of expected credit losses.
Derivatives held for hedging are held at fair value and are classified as
Level 2 and Level 3 while the counterparty is Standard Chartered Bank and
external counterparties.
Investment securities comprise debt securities held at amortised cost issued
by Standard Chartered Bank and SC Ventures Holdings Limited and have a fair
value that approximates to carrying value of $4,904 million (31 December 2024:
$5,808 million).
In 2025 and 2024, amounts owed by subsidiary undertakings have a fair value
that approximates to carrying value.
Financial liabilities 2025 2024
Derivatives held for hedging Amortised cost Designated at fair value through profit or loss Total Derivatives Amortised cost Designated at fair value through profit Total
held for hedging
or loss
$million $million $million $million
$million
$million
$million $million
Financial liabilities held at fair value through profit or loss
Debt securities in issue - - 15,645 15,645 - - 14,175 14,175
Subordinated liabilities and other borrowed funds - - 1,853 1,853 - - 2,677 2,677
Derivatives 777 - - 777 1,065 - - 1,065
Debt securities in issue - 21,231 - 21,231 - 18,167 - 18,167
Subordinated liabilities and other borrowed funds - 6,831 - 6,831 - 7,661 - 7,661
Amounts owed to subsidiary undertakings - 225 - 225 - 35 - 35
Total 777 28,287 17,498 46,562 1,065 25,863 16,852 43,780
Derivatives held for hedging are held at fair value and are classified as
Level 2 while the counterparty is Standard Chartered Bank and Standard
Chartered Bank (Hong Kong) Limited.
The fair value of debt securities in issue held at amortised cost is $21,801
million (2024: $18,313 million).
The fair value of subordinated liabilities and other borrowed funds held at
amortised cost is $6,668 million (2024: $7,336 million).
Derivative financial instruments
Derivatives 2025 2024
Notional principal amounts Assets Liabilities Notional principal amounts Assets Liabilities
$million $million $million $million $million $million
Foreign exchange derivative contracts:
Forward foreign exchange 8,819 46 23 9,077 46 30
Currency swaps 72 - - 545 20 -
Interest rate derivative contracts:
Swaps 13,949 182 754 14,863 32 1,035
Credit derivative contracts 3,690 11 - 4,030 14 -
Total 26,530 239 777 28,515 112 1,065
Page 100
Credit risk
2025 2024
$million $million
Derivative financial instruments 239 112
Debt securities 23,379 24,857
Amounts owed by subsidiary undertakings 15,226 11,601
Total 38,844 36,570
In 2025 and 2024, amounts owed by subsidiary undertakings were neither past
due nor impaired; the Company had no individually impaired loans.
In 2025 and 2024, the Company had no impaired debt securities. The debt
securities held by the Company are issued by Standard Chartered Bank, Standard
Chartered Bank (Hong Kong) Limited, Standard Chartered Bank (China) Limited
and Standard Chartered Bank (Singapore) Limited, subsidiary undertakings with
credit ratings of A+.
There is no material expected credit loss on these instruments as they are
Stage 1 assets, and of a high quality.
Liquidity risk
The following table analyses the residual contractual maturity of the assets
and liabilities of the Company on a discounted basis:
2025
One Between Between three months Between Between nine months Between Between More than five years Total
one month
six months
one year
two years
month
and
and
and undated $million
and
and
and and
or less
six months
one year
$million
three months
nine months
two years five years
$million
$million
$million
$million $million $million $million
Assets
Derivative financial instruments 133 - 11 19 1 - 37 38 239
Investment securities 1,498 - 36 1 - - 8,633 13,211 23,379
Amount owed by subsidiary undertakings 2,569 679 867 1,506 591 596 4,847 3,571 15,226
Investments in subsidiary undertakings - - - - - - - 63,442 63,442
Total assets 4,200 679 914 1,526 592 596 13,517 80,262 102,286
Liabilities
Derivative financial instruments 17 - 16 - - 21 191 532 777
Senior debt - - 1,269 - - 5,315 13,600 16,692 36,876
Amount owed to subsidiary undertakings 225 - - - - - - - 225
Other liabilities 370 741 155 9 3 - - - 1,278
Subordinated liabilities and other borrowed funds 2 43 15 154 - 1,457 753 6,260 8,684
Total liabilities 614 784 1,455 163 3 6,793 14,544 23,484 47,840
Net liquidity gap 3,586 (105) (541) 1,363 589 (6,197) (1,027) 56,778 54,446
Page 101
2024
One Between Between three months Between six months Between Between Between More than five years Total
one month
nine months
one year
two years
month
and and
and $million
and
and and and
undated
or less
six months nine months
three months
one year two years five years $million
$million
$million $million
$million $million $million $million
Assets
Derivative financial instruments 45 23 - 20 - 24 - - 112
Investment securities - - - - - 1,725 7,205 15,927 24,857
Amount owed by subsidiary undertakings 1,763 1,536 1,931 110 53 2,355 2,695 1,158 11,601
Investments in subsidiary undertakings - - - - - - - 61,593 61,593
Other assets - - - - - - - - -
Total assets 1,808 1,559 1,931 130 53 4,104 9,900 78,678 98,163
Liabilities
Derivative financial instruments 30 - 22 - - 53 147 813 1,065
Senior debt - - 992 - - 4,979 12,887 13,484 32,342
Amount owed to subsidiary undertakings 35 - - - - - - - 35
Other liabilities 304 512 126 14 3 - - - 959
Subordinated liabilities and other borrowed funds 2 46 14 187 - 376 1,995 7,718 10,338
Total liabilities 371 558 1,154 201 3 5,408 15,029 22,015 44,739
Net liquidity gap 1,437 1,001 777 (71) 50 (1,304) (5,129) 56,663 53,424
Financial liabilities on an undiscounted basis
2025
One Between Between three months Between Between nine months Between Between More than five years Total
one month
six months
one year
two years
month
and
and
and undated $million
and
and
and and
or less
six months
one year
$million
three months
nine months
two years five years
$million
$million
$million
$million $million $million $million
Derivative financial instruments 265 - 16 - - 22 206 325 834
Debt securities in issue 314 237 1,654 449 315 6,939 17,037 19,424 46,369
Subordinated liabilities and other
borrowed funds 33 116 36 164 - 1,541 889 11,538 14,317
Other liabilities 33 1,245 - - - - - - 1,278
Total liabilities 645 1,598 1,706 613 315 8,502 18,132 31,287 62,798
2024
One Between Between three months Between six months Between Between Between More than five years Total
one month
nine months
one year
two years
month
and and
and undated $million
and
and and and
or less
six months nine months
$million
three months
one year two years five years
$million
$million $million
$million $million $million $million
Derivative financial instruments 30 - 22 - - 53 147 813 1,065
Debt securities in issue 276 151 1,355 368 308 6,333 15,780 15,635 40,206
Subordinated liabilities and other borrowed funds 33 134 34 206 - 407 2,261 13,473 16,548
Other liabilities - 959 - - - - - - 959
Total liabilities 339 1,244 1,411 574 308 6,793 18,188 29,921 58,778
Page 102
40. Re-presentation tables of Credit risk disclosures by key geography
As set out in note 1 to the financial statements, prior period amounts for
certain Credit risk tables (required by IFRS 7 - Financial Instruments:
Disclosures) within the Risk review were also re-presented for a change in
accounting policy for the presentation of the Group's geographic disclosures
to align to information reported to key management personnel and to
incorporate loans reported in Central & other items into the tables. The
following tables provide a reconciliation between the tables previously
disclosed at
31 December 2024 and the re-presented tables in these financial statements.
Loans and advances analysis by client segment, credit quality and key
geography - Corporate & Investment Banking and Central & other items
Published table as of 31 December 2024
Corporate & Investment Banking and Central & other items
2024
Gross Credit Impairment
Stage1 Stage2 Stage3 Stage1 Stage2 Stage3 Total Coverage %
Strong Satisfactory Total Strong Satisfactory Higher Risk Total Defaulted Total Strong Satisfactory Total Strong Satisfactory Higher Risk Total Impaired Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Hong Kong 32,552 12,079 44,631 230 1,539 64 1,833 1,272 1,272 (8) (8) (16) (33) (107) (9) (149) (1,157) (1,157) (2.8)%
Corporate Lending 14,429 6,180 20,609 225 1,329 64 1,618 1,260 1,260 (5) (4) (9) (33) (102) (9) (144) (1,157) (1,157) (5.6)%
Non Corporate Lending(1) 4,567 2,730 7,297 4 206 - 210 12 12 (1) (3) (4) - (5) - (5) - - (0.1)%
Banks 13,556 3,169 16,725 1 4 - 5 - - (2) (1) (3) - - - - - - (0.0)%
Singapore 31,129 7,769 38,898 500 955 35 1,490 407 407 - (8) (8) (4) (14) - (18) (196) (196) (0.5)%
Corporate Lending 7,333 4,003 11,336 469 594 35 1,098 335 335 - (6) (6) (4) (14) - (18) (195) (195) (1.7)%
Non Corporate Lending(1) 19,348 567 19,915 29 358 - 387 - - - (1) (1) - - - - - - (0.0)%
Banks 4,448 3,199 7,647 2 3 - 5 72 72 - (1) (1) - - - - (1) (1) (0.0)%
China 10,380 2,794 13,174 49 133 14 196 171 171 (3) (1) (4) - - - - (86) (86) (0.7)%
Corporate Lending 4,933 2,193 7,126 49 133 14 196 168 168 (1) (1) (2) - - - - (83) (83) (1.1)%
Non Corporate Lending(1) 3,241 363 3,604 - - - - - - (1) - (1) - - - - - - (0.0)%
Banks 2,206 238 2,444 - - - - 3 3 (1) - (1) - - - - (3) (3) (0.2)%
UK 11,029 3,939 14,968 48 479 3 530 316 316 (10) (4) (14) - (27) (6) (33) (258) (258) (1.9)%
Corporate Lending 325 871 1,196 47 479 1 527 258 258 (9) (3) (12) - (27) (6) (33) (237) (237) (14.2)%
Non Corporate Lending(1) 8,690 982 9,672 1 - - 1 57 57 (1) (1) (2) - - - - (21) (21) (0.2)%
Banks 2,014 2,086 4,100 - - 2 2 1 1 - - - - - - - - - (0.0)%
US 16,244 4,456 20,700 92 433 33 558 31 31 (4) (1) (5) (1) (1) - (2) (3) (3) (0.0)%
Corporate Lending 5,426 2,761 8,187 77 322 - 399 28 28 (3) (1) (4) (1) (1) - (2) - - (0.1)%
Non Corporate Lending(1) 9,688 123 9,811 15 79 - 94 3 3 (1) - (1) - - - - (3) (3) (0.0)%
Banks 1,130 1,572 2,702 - 32 33 65 - - - - - - - - - - - (0.0)%
Others 42,171 19,370 61,541 318 3,251 819 4,389 2,460 2,460 (10) (33) (43) (3) (70) (29) (102) (1,483) (1,483) (2.4)%
Corporate Lending 24,835 14,075 38,910 291 2,048 516 2,855 2,221 2,221 (6) (26) (32) (3) (38) (28) (69) (1,333) (1,333) (3.3)%
Non Corporate Lending(1) 9,451 3,590 13,041 22 1,117 153 1,292 232 232 - (6) (6) - (31) (1) (32) (149) (149) (1.3)%
Banks 7,885 1,705 9,590 5 86 150 241 7 7 (4) (1) (5) - (1) - (1) (1) (1) (0.1)%
Total 143,505 50,407 193,912 1,237 6,790 968 8,996 4,657 4,657 (35) (55) (90) (41) (219) (44) (304) (3,183) (3,183) (1.7)%
1 Refer to the equivalent table of the Risk Review section.
Page 103
Adjustment table
Corporate & Investment Banking and Central & other items
2024
Gross Credit Impairment
Stage1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Total Coverage %
Strong Satisfactory Total Strong Satisfactory Higher Risk Total Defaulted Total Strong Satisfactory Total Strong Satisfactory Higher Risk Total Impaired Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Hong Kong 2,909 - 2,909 - - - - (36) (36) - - - - - - - - - -
Corporate Lending 1,199 - 1,199 - - - - (36) (36) - - - - - - - - - -
Non Corporate Lending(1) 41 - 41 - - - - - - - - - - - - - - - -
Banks 1,669 - 1,669 - - - - - - - - - - - - - - - -
Singapore (2,985) (993) (3,978) - (64) - (64) 70 70 - - - - - - - - - -
Corporate Lending (2,212) (454) (2,666) - (64) - (64) 70 70 - - - - - - - - - -
Non Corporate Lending(1) (808) (524) (1,332) - - - - - - - - - - - - - - - -
Banks 35 (15) 20 - - - - - - - - - - - - - - - -
China 10 50 60 - - - - - - - - - - - - - - - -
Corporate Lending (1) 50 49 - - - - - - - - - - - - - - - -
Non Corporate Lending(1) - - - - - - - - - - - - - - - - - - -
Banks 11 - 11 - - - - - - - - - - - - - - - -
UK (10,526) (2,046) (12,572) - (1,461) (138) (1,599) (440) (440) - - - - - - - - - -
Corporate Lending (2,006) (1,211) (3,217) - (954) (26) (980) (400) (400) - - - - - - - - - -
Non Corporate Lending(1) (8,350) (771) (9,121) - (507) (112) (619) (40) (40) - - - - - - - - - -
Banks (170) (64) (234) - - - - - - - - - - - - - - - -
US 537 56 593 - - - - 27 27 - - - - - - - - - -
Corporate Lending 92 56 148 - - - - 27 27 - - - - - - - - - -
Non Corporate Lending(1) - - - - - - - - - - - - - - - - - - -
Banks 445 - 445 - - - - - - - - - - - - - - - -
Others 10,055 2,933 12,988 - 1,525 138 1,663 379 379 - - - - - - - - - -
Corporate Lending 2,926 1,559 4,485 - 1,018 26 1,044 338 338 - - - - - - - - - -
Non Corporate Lending(1) 9,119 1,294 10,413 - 507 112 619 41 41 - - - - - - - - - -
Banks (1,990) 80 (1,910) - - - - - - - - - - - - - - - -
Total - - - - - - - - - - - - - - - - - - -
1 Refer to the equivalent table of the Risk Review section.
Page 104
Re-presented table as of 31 December 2024
Corporate & Investment Banking and Central & other items
2025
Gross Credit Impairment
Stage1 Stage2 Stage3 Stage1 Stage2 Stage3 Total Coverage %
Strong Satisfactory Total Strong Satisfactory Higher Risk Total Defaulted Total Strong Satisfactory Total Strong Satisfactory Higher Risk Total Impaired Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Hong Kong 29,643 12,079 41,722 230 1,539 64 1,833 1,308 1,308 (8) (8) (16) (33) (107) (9) (149) (1,157) (1,157) (2.9)%
Corporate Lending 13,230 6,180 19,410 225 1,329 64 1,618 1,296 1,296 (5) (4) (9) (33) (102) (9) (144) (1,157) (1,157) (5.9)%
Non Corporate Lending 4,526 2,730 7,256 4 206 - 210 12 12 (1) (3) (4) - (5) - (5) - - (0.1)%
Banks 11,887 3,169 15,056 1 4 - 5 - - (2) (1) (3) - - - - - - (0.0)%
Singapore 34,114 8,762 42,876 500 1,019 35 1,554 337 337 - (8) (8) (4) (14) - (18) (196) (196) (0.5)%
Corporate Lending 9,545 4,457 14,002 469 658 35 1,162 265 265 - (6) (6) (4) (14) - (18) (195) (195) (1.4)%
Non Corporate Lending 20,156 1,091 21,247 29 358 - 387 - - - (1) (1) - - - - - - (0.0)%
Banks 4,413 3,214 7,627 2 3 - 5 72 72 - (1) (1) - - - - (1) (1) (0.0)%
China 10,370 2,744 13,114 49 133 14 196 171 171 (3) (1) (4) - - - - (86) (86) (0.7)%
Corporate Lending 4,934 2,143 7,077 49 133 14 196 168 168 (1) (1) (2) - - - - (83) (83) (1.1)%
Non Corporate Lending 3,241 363 3,604 - - - - - - (1) - (1) - - - - - - (0.0)%
Banks 2,195 238 2,433 - - - - 3 3 (1) - (1) - - - - (3) (3) (0.2)%
UK 21,555 5,985 27,540 48 1,940 141 2,129 756 756 (10) (4) (14) - (27) (6) (33) (258) (258) (1.0)%
Corporate Lending 2,331 2,082 4,413 47 1,433 27 1,507 658 658 (9) (3) (12) - (27) (6) (33) (237) (237) (4.3)%
Non Corporate Lending 17,040 1,753 18,793 1 507 112 620 97 97 (1) (1) (2) - - - - (21) (21) (0.1)%
Banks 2,184 2,150 4,334 - - 2 2 1 1 - - - - - - - - - (0.0)%
US 15,707 4,400 20,107 92 433 33 558 4 4 (4) (1) (5) (1) (1) - (2) (3) (3) (0.0)%
Corporate Lending 5,334 2,705 8,039 77 322 - 399 1 1 (3) (1) (4) (1) (1) - (2) - - (0.1)%
Non Corporate Lending 9,688 123 9,811 15 79 - 94 3 3 (1) - (1) - - - - (3) (3) 0.0%
Banks 685 1,572 2,257 - 32 33 65 - - - - - - - - - - - 0.0%
Others 32,116 16,437 48,553 318 1,726 681 2,725 2,081 2,081 (10) (33) (43) (3) (70) (29) (102) (1,483) (1,483) (3.1)%
Corporate Lending 21,909 12,516 34,425 291 1,030 490 1,811 1,883 1,883 (6) (26) (32) (3) (38) (28) (69) (1,333) (1,333) (3.8)%
Non Corporate Lending 332 2,296 2,628 22 610 41 673 191 191 - (6) (6) - (31) (1) (32) (149) (149) (5.4)%
Banks 9,875 1,625 11,500 5 86 150 241 7 7 (4) (1) (5) - (1) - (1) (1) (1) (0.1)%
Total 143,505 50,407 193,912 1,237 6,790 968 8,995 4,657 4,657 (35) (55) (90) (41) (219) (44) (304) (3,183) (3,183) (1.7)%
1 Refer to the equivalent table of the Risk Review section.
Page 105
Industry analysis of loans and advances by key geography - Corporate &
Investment Banking and Central & other items
Published table as of 31 December 2024 (Corporate & Investment Banking)
Amortised Cost 2024
Hong Kong China Singapore UK US Other Total
$million $million $million $million $million $million $million
Industry:
Energy 2,200 59 1,552 1,744 1,750 5,551 12,856
Manufacturing 4,077 4,200 1,463 389 2,307 8,431 20,867
Financing, insurance and non-banking 3,674 3,486 1,893 4,005 9,900 12,696 35,654
Transport, telecom and utilities 5,131 662 3,106 1,084 936 7,685 18,604
Food and household products 1,038 428 1,414 962 685 4,202 8,729
Commercial Real estate 4,512 334 1,404 1,039 1,650 4,994 13,933
Mining and Quarrying 608 606 847 1,426 224 2,170 5,881
Consumer durables 2,780 293 466 84 537 2,046 6,206
Construction 318 156 372 96 247 1,268 2,457
Trading Companies & Distributors 95 103 106 31 40 277 652
Government 2,576 117 219 169 4 4,352 7,437
Other 1,419 563 786 377 233 1,650 5,028
Net Loans and advances to Customers 28,428 11,007 13,628 11,406 18,513 55,322 138,304
Net Loans and advances to Banks 16,727 2,443 7,721 4,103 2,766 9,833 43,593
Adjustment table (Corporate & Investment Banking and Central & other items)
Amortised Cost 2024
Hong Kong China Singapore UK US Other Total
$million $million $million $million $million $million $million
Industry:
Energy 1,164 (1) (1,537) (1,922) (21) 2,313 (4)
Manufacturing - - (192) (271) - 463 -
Financing, insurance and non-banking 41 - (508) (8,277) - 8,718 (26)
Transport, telecom and utilities - 50 (660) (1,512) 56 2,060 (6)
Food and household products - - (58) (189) - 247 -
Commercial Real estate - - (17) (68) 75 10 -
Mining and Quarrying - - (19) (218) 10 227 -
Consumer durables - - (38) (70) 56 51 (1)
Construction - - (110) - - 110 -
Trading Companies & Distributors - - - - - - -
Government (1,260) - (20,047) (1,502) - 760 (22,049)
Other - - (30) (347) - 372 (5)
Net Loans and advances to Customers (55) 49 (23,216) (14,376) 176 15,331 (22,091)
Net Loans and advances to Banks 1,669 11 20 (234) 444 (1,910) -
Page 106
Re-presented table as of 31 December 2024
(Corporate & Investment Banking and Central & other items)
Amortised Cost 2024(1)
Hong Kong China Singapore UK US Other Total
$million $million $million $million $million $million $million
Industry:
Energy 1,036 60 3,089 3,666 1,771 3,238 12,860
Manufacturing 4,077 4,200 1,655 660 2,307 7,968 20,867
Financing, insurance and non-banking 3,633 3,486 2,401 12,282 9,900 3,978 35,680
Transport, telecom and utilities 5,131 612 3,766 2,596 880 5,625 18,610
Food and household products 1,038 428 1,472 1,151 685 3,955 8,729
Commercial Real estate 4,512 334 1,421 1,107 1,575 4,984 13,933
Mining and Quarrying 608 606 866 1,644 214 1,943 5,881
Consumer durables 2,780 293 504 154 481 1,995 6,207
Construction 318 156 482 96 247 1,158 2,457
Trading Companies & Distributors 95 103 106 31 40 277 652
Government 3,836 117 20,266 1,671 4 3,592 29,486
Other 1,419 563 816 724 233 1,278 5,033
Net Loans and advances to Customers 28,483 10,958 36,844 25,782 18,337 39,991 160,395
Net Loans and advances to Banks 15,058 2,432 7,701 4,337 2,322 11,743 43,593
1 Refer to the equivalent table of the Risk Review section.
Forborne and other modified loans by key geography
Published table as of 31 December 2024
Amortised cost 2024
Hong Kong Korea China Singapore UK US Other Total
$million
$million
$million
$million
$million
$million
$million
$million
Performing forborne loans 2 8 - 3 - - 39 52
Stage 3 forborne loans 118 18 77 25 78 1 415 732
Net forborne loans 120 26 77 28 78 1 454 784
Adjustment table
Amortised cost 2024
Hong Kong Korea China Singapore UK US Other Total
$million
$million
$million
$million
$million
$million
$million
$million
Performing forborne loans - - - - - - - -
Stage 3 forborne loans 8 (7) (8) - (3) - 10 -
Net forborne loans 8 (7) (8) - (3) - 10 -
Re-presented table as of 31 December 2024
Amortised cost 2024(1)
Hong Kong Korea China Singapore UK US Other Total
$million
$million
$million
$million
$million
$million
$million
$million
Performing forborne loans 2 8 - 3 - - 39 52
Stage 3 forborne loans 110 25 85 25 81 1 405 732
Net forborne loans 112 33 85 28 81 1 444 784
1 Refer to the equivalent table of the Risk Review section.
Page 107
41. Related undertakings of the Group
As at 31 December 2025, the Group's interests in related undertakings are
disclosed below. Unless otherwise stated, the share capital disclosed
comprises ordinary or common shares which are held by subsidiaries of the
Group. Standard Chartered Bank (Hong Kong) Limited, Standard Chartered
Funding (Jersey) Limited, Stanchart Nominees Limited, Standard Chartered
Holdings Limited and Standard Chartered Nominees Limited are directly held
subsidiaries, all other related undertakings are held indirectly. Unless
otherwise stated, the principal country of operation of each subsidiary is the
same as its country of incorporation Note 32 details undertakings that have a
significant contribution to the Group's net profit or net assets.
Subsidiary Undertakings
Name Proportion of shares held (%) Footnotes
FinVentures UK Limited(v) 100 (1 , 163)
SC (Secretaries) Limited(ix) 100 (1)
SC Ventures G.P. Limited(v) 100 (1)
SC Ventures Innovation Investment L.P.(v) 100(Y) (1)
SCMB Overseas Limited(v) 100 (1 , 163)
Standard Chartered Africa Limited(v) 100 (1 , 163)
Standard Chartered Bank(i) 100; 100(Q,T) (1)
Standard Chartered Foundation(ix) 100 (1 , 158)
Standard Chartered Health Trustee (UK) Limited(ix) 100 (1)
Standard Chartered I H Limited(v) 100 (1 , 163)
Standard Chartered Nominees (Private Clients UK) Limited(i) 100 (1)
Standard Chartered Securities (Africa) Holdings Limited(v) 100 (1 , 163)
Standard Chartered Strategic Investments Limited(v) 100 (1 , 163)
Standard Chartered Trustees (UK) Limited(ix) 100 (1)
SC Ventures Holdings Limited(v) 100; 100(M) (1)
Zodia Markets (UK) Limited(i) 100 (1)
Zodia Markets Holdings Limited(v) 83.96 (1)
Bricks (C&K) LP(ix) 100(Y) (2 , 158)
Bricks (C) LP(ix) 100(Y) (2 , 158)
Bricks (T) LP(ix) 100(Y) (2 , 158)
Corrasi Covered Bonds LLP(ix) 75(AA) (3)
Zodia Custody Limited(iv) 95.1; 15.132(K) (107)
Zodia Holdings Limited(v) 100(A) (107)
Assembly Payments UK Ltd(iv) 100 (4 , 158)
CurrencyFair (UK) Limited(i) 100 (4 , 158)
Zai Technologies Limited(iv) 100 (4 , 158)
Standard Chartered Grindlays Pty Limited(v) 100 (5)
Assembly Payments Australia Pty Ltd(iv) 100 (131 , 158)
Zai Australia Pty Ltd(iv) 100 (11)
CurrencyFair Australia Pty Ltd(iv) 100 (6 , 158)
Standard Chartered Bank Insurance Agency (Proprietary) Limited(i) 100 (7)
Standard Chartered Investment Services (Proprietary) Limited(i) 100 (7)
Standard Chartered Bank Botswana Limited(i) 75.827 (7)
Standard Chartered Botswana Nominees (Proprietary) Limited(i) 100 (7)
Standard Chartered Botswana Education Trust(ix) 100(AB) (7)
Standard Chartered Representação e Participações Ltda(i) 100 (8)
Standard Chartered Securities (B) Sdn Bhd(i) 100 (108)
CurrencyFair (Canada) Ltd(iv) 100 (10 , 158)
SCB Investment Holding Company Limited(v) 100(A) (114)
Standard Chartered Global Business Services Co., Ltd(viii) 100 (12 , 160)
Standard Chartered Global Business Services (Guangzhou) Co., Ltd.(viii) 100 (121 , 160)
Guangzhou CurrencyFair Information Technology Limited(iv) 100 (13,159)
Standard Chartered Bank Cote d'Ivoire SA(ix) 100 (14)
Standard Chartered Bank AG(i) 100 (16)
Solvezy Technology Ghana Ltd(iv) 100 (17)
Standard Chartered Bank Ghana PLC(i) 69.416; 87.043(T) (18)
Standard Chartered Ghana Nominees Limited(i) 100 (18)
Standard Chartered Wealth Management Limited Company(i) 100 (19)
Standard Chartered PF Real Estate (Hong Kong) Limited(v) 100 (81)
Standard Chartered Private Equity Limited(v) 100 (20)
Standard Chartered Asia Limited(v) 100; 100(AD) (20)
CurrencyFair Asia Limited(iv) 100 (91 , 158)
Zodia Custody (Hong Kong) Limited(iv) 100 (132)
Assembly Payments India Private Limited(iv) 100 (92)
Standard Chartered Global Business Services Private Limited(viii) 100 (22)
Standard Chartered Finance Private Limited(viii) 98.895 (23)
Page 108
Name Proportion of shares held (%) Footnotes
Standard Chartered Capital Limited(i) 100 (153)
Standard Chartered Securities (India) Limited(i) 100 (93)
Standard Chartered (India) Modeling and Analytics Centre Private Limited(viii) 100 (26)
SCV Research and Development Pvt. Ltd.(iv) 100 (117)
PT Labamu Sejahtera Indonesia(iv) 100 (27)
Currencyfair Limited(iv) 100(A) (150 , 158 , 165)
CurrencyFair Nominees Limited(iv) 100 (148, 158)
Zodia Markets (Ireland) Limited(i) 100 (133)
Zodia Custody (Ireland) Limited(iv) 100 (134)
Standard Chartered Assurance Limited(i) 100; 100(M) (29)
Standard Chartered Isle of Man Limited(i) 100 (29)
Standard Chartered Securities (Japan) Limited(i) 100 (30)
SCB Nominees (CI) Limited(i) 100 (31)
Solvezy Technology Kenya Limited(iv) 100 (32)
Standard Chartered Bancassurance Intermediary Limited(i) 100 (32)
Standard Chartered Investment Services Limited(v) 100 (32)
Standard Chartered Bank Kenya Limited(i) 74.318; 100(J) (32)
Standard Chartered Securities (Kenya) Limited(i) 100 (32)
Standard Chartered Financial Services Limited(i) 100 (32)
Standard Chartered Kenya Nominees Limited(i) 100 (32)
Standard Chartered Metropolitan Holdings SAL(v) 100(A) (33)
Cartaban (Malaya) Nominees Sdn Berhad(i) 100 (34)
Cartaban Nominees (Asing) Sdn Bhd(i) 100 (34)
Cartaban Nominees (Tempatan) Sdn Bhd(i) 100 (34)
Golden Maestro Sdn Bhd(v) 100 (34)
Price Solutions Sdn Bhd(i) 100 (34)
SCBMB Trustee Berhad(ix) 100 (34)
Standard Chartered Bank Malaysia Berhad(i) 100; 100(S) (34)
Standard Chartered Saadiq Berhad(i) 100 (34)
Resolution Alliance Sdn Bhd(v) 91 (35 , 158)
Standard Chartered Global Business Services Sdn Bhd(viii) 100 (115)
Assembly Payments Malaysia Sdn. Bhd.(iv) 100 (37, 158)
Standard Chartered Bank (Mauritius) Limited(i) 100 (38)
Standard Chartered Private Equity (Mauritius) Limited(i) 100 (113)
Standard Chartered Private Equity (Mauritius) II Limited(i) 100 (113)
Standard Chartered Private Equity (Mauritius) lll Limited(i) 100 (113)
Subcontinental Equities Limited(v) 100 (39)
Standard Chartered Bank Nepal Limited(i) 70.21 (40)
Standard Chartered Holdings (Africa) B.V.(v) 100 (1, 161)
Standard Chartered Holdings (Asia Pacific) B.V.(v) 100 (1, 161)
Standard Chartered Holdings (International) B.V.(v) 100 (1, 161)
Standard Chartered MB Holdings B.V.(v) 100 (1, 161)
PromisePay Limited(iv) 100 (41 , 158)
Standard Chartered Bank Nigeria Limited(i) 100; 100(N,T) (42)
Standard Chartered Capital & Advisory Nigeria Limited(i) 100 (42)
Standard Chartered Nominees (Nigeria) Limited(i) 100 (42)
Standard Chartered Bank (Pakistan) Limited(i) 98.986 (43)
Standard Chartered Group Services, Manila Incorporated(viii) 100 (44)
Standard Chartered Global Business Services spółka z ograniczoną 100 (45)
odpowiedzialnością(viii)
Standard Chartered Capital (Saudi Arabia)(i) 100 (116)
Standard Chartered Private Equity (Singapore) Pte. Ltd(v) 100 (46)
Standard Chartered Real Estate Investment Holdings (Singapore) Private 100 (46)
Limited(v)
Raffles Nominees (Pte.) Limited(i) 100 (47)
SCTS Capital Pte. Ltd(i) 100 (48)
SCTS Management Pte. Ltd.(i) 100 (48)
Standard Chartered Bank (Singapore) Limited(i) 100(A,B,C,U,V,W) (48)
Standard Chartered Trust (Singapore) Limited(ix) 100 (48)
Standard Chartered Holdings (Singapore) Private Limited(v) 100 (48)
Standard Chartered Nominees (Singapore) Pte Ltd(i) 100 (48)
Audax Financial Technology Pte. Ltd(iv) 100(A) (147)
CashEnable Pte. Ltd.(iv) 100(A) (146)
Letsbloom Pte. Ltd.(iv) 100(A) (90)
Libeara (Singapore) Pte. Ltd.(iv) 100 (90)
Libeara Pte. Ltd.(v) 100 (90)
SCV Research and Development Pte. Ltd.(iv) 100(A) (145)
Zodia Custody (Singapore) Pte. Ltd.(iv) 100 (145)
Power2SME Pte. Ltd.(v) 91.577 (146)
Page 109
Name Proportion of shares held (%) Footnotes
SCV Master Holding Company Pte. Ltd.(v) 100; 100(M) (146)
Solv-India Pte. Ltd.(v) 100 (169)
Trust Bank Singapore Limited(i) 60 (130)
CurrencyFair (Singapore) Pte.Ltd(iv) 100 (49 , 158)
Assembly Payments SGP Pte. Ltd.(iv) 100 (50 , 158)
Assembly Payments Pte. Ltd.(iv) 100; 100(J) (50 , 158)
Standard Chartered Nominees South Africa Proprietary Limited (RF)(i) 100 (52)
Standard Chartered Bank Tanzania Limited(i) 100; 100(J) (53)
Standard Chartered Tanzania Nominees Limited(i) 100 (53)
Standard Chartered Bank (Thai) Public Company Limited(i) 99.87 (54)
Standard Chartered Yatirim Bankasi Turk Anonim Sirket(ii) 100 (55)
Standard Chartered Bank Uganda Limited(i) 100 (56)
Furaha Finserve Uganda Limited(i) 100.001 (57)
Appro Onboarding Solutions FZ-LLC(iv) 100 (58)
Financial Inclusion Technologies Ltd(v) 100(A) (94)
Furaha Holding Ltd(v) 100; 100(B) (59)
myZoi Financial Inclusion Technologies LLC(iv) 100 (61)
Standard Chartered Bank International (Americas) Limited(i) 100 (111)
Standard Chartered Holdings Inc.(v) 100 (62)
Standard Chartered Securities (North America) LLC(i) 100(AA) (62)
CurrencyFair (USA) Inc(iv) 100(AC) (64 , 158)
Standard Chartered Trade Services Corporation(i) 100 (89)
Standard Chartered Bank (Vietnam) Limited(i) 100(X) (65)
Sky Harmony Holdings Limited(v) 100 (118)
Standard Chartered Bank Zambia Plc(i) 90 (119)
Standard Chartered Zambia Securities Services Nominees Limited(i) 100 (138)
Stanchart Nominees Limited(i) 100 (1 , 164)
Standard Chartered Holdings Limited(v) 100 (1 , 163 , 164, 159)
Standard Chartered NEA Limited(v) 100 (1 , 163)
Standard Chartered Nominees Limited(i) 100 (1 , 164)
Standard Chartered (Guangzhou) Business Management Co., Ltd.(ii) 100 (120, 159, 160)
Standard Chartered Bank (China) Limited(i) 100 (75 , 159 , 185)
Standard Chartered Securities (China) Limited(i) 100 (76 , 159, 160)
Horsford Nominees Limited(i) 100 (77)
Marina Acacia Shipping Limited(vi) 100 (78)
Marina Amethyst Shipping Limited(vi) 100 (78)
Marina Angelite Shipping Limited(vi) 100 (78)
Marina Beryl Shipping Limited(vi) 100 (78)
Marina Emerald Shipping Limited(vi) 100 (78)
Marina Flax Shipping Limited(vi) 100 (78)
Marina Gloxinia Shipping Limited(vi) 100 (78)
Marina Hazel Shipping Limited(vi) 100 (78)
Marina Ilex Shipping Limited(vi) 100 (78)
Marina Iridot Shipping Limited(vi) 100 (78)
Marina Mimosa Shipping Limited(vi) 100 (78)
Marina Moonstone Shipping Limited(vi) 100 (78)
Marina Peridot Shipping Limited(vi) 100 (78)
Marina Sapphire Shipping Limited(vi) 100 (78)
Marina Tourmaline Shipping Limited(vi) 100 (78)
Standard Chartered Securities (Hong Kong) Limited(i) 100 (78)
Marina Leasing Limited(vi) 100 (78)
Standard Chartered Leasing Group Limited(v) 100 (78)
Standard Chartered Trade Support (HK) Limited(i) 100 (78)
Mox Bank Limited(i) 74.36 (79)
Standard Chartered Bank (Hong Kong) Limited(i) 100(A,B,C,D) (80)
Standard Chartered Trustee (Hong Kong) Limited(ix) 100 (82)
Standard Chartered Funding (Jersey) Limited(v) 100 (83)
Standard Chartered Bank Korea Limited(i) 100 (84)
Standard Chartered Securities Korea Co., Ltd(i) 100 (85)
Marina Morganite Shipping Limited(vi) 100 (125 , 162)
Marina Moss Shipping Limited(vi) 100 (125, 162)
Marina Tanzanite Shipping Limited(vi) 100 (125 , 162)
Marina Angelica Shipping Limited(vi) 100 (86 , 162)
Marina Aventurine Shipping Limited(vi) 100 (86 , 162)
Marina Citrine Shipping Limited(vi) 100 (86 , 162)
Marina Dahlia Shipping Limited(vi) 100 (86 , 162)
Marina Dittany Shipping Limited(vi) 100 (86 , 162)
Page 110
Name Proportion of shares held (%) Footnotes
Marina Lilac Shipping Limited(vi) 100 (86 , 162)
Marina Lolite Shipping Limited(vi) 100 (86 , 162)
Marina Obsidian Shipping Limited(vi) 100 (86 , 162)
Marina Quartz Shipping Limited(vi) 100 (86 , 162)
Marina Remora Shipping Limited(vi) 100 (86 , 162)
Marina Turquoise Shipping Limited(vi) 100 (86 , 162)
Marina Zircon Shipping Limited(vi) 100 (86 , 162)
Price Solution Pakistan (Private) Limited(i) 100 (87)
Standard Chartered Bank (Taiwan) Limited(i) 100 (88)
CMB Nominees (RF) Proprietary Limited(ix) 100 (52)
Letsbloom India Private Limited(iv) 100 (97)
Qatalyst Pte. Ltd.(iv) 72.727 (146)
Solv Vietnam Company Limited(iv) 100(X) (98)
Standard Chartered Funds VCC(ix) 100 (48)
TASConnect (Hong Kong) Private Limited(iv) 100 (99)
TASConnect (Malaysia) Sdn. Bhd.(iv) 100 (36)
TASConnect (Shanghai) Financial Technology Pte. Ltd(iv) 100 (151, 160)
Zodia Custody Australia Pty. Ltd.(iv) 100 (126)
Zodia Markets (AME) Limited(iv) 100 (127)
Zodia Markets (Jersey) Limited(iv) 100 (129)
Standard Chartered Luxembourg S.A.(i) 100 (106)
Fourtwothree Pte. Ltd(iv) 100 (90)
HAL Holding Ltd(iv) 100 (155)
Zodia Custody (Europe) S.A.(iv) 100 (128)
Actis Treit Holdings (Mauritius) Limited(v) 62.001(A,B) (149 , 158)
Actis Treit Holdings No.1 (Singapore) Private Limited(v) 100 (156 , 158)
Actis Treit Holdings No.2 (Singapore) Private Limited(v) 100 (156 , 158)
Anchorpoint Financial Limited(iv) 50.5 (20)
Appro Marketing Solutions L.L.C(iv) 100 (139)
Berkeley Square Finance 1 Designated Activity Company(i) 100 (124)
CFZ Holding Limited(iv) 29.96;100(A) (150)
Currencyfair Group Limited(iv) 100 (150 158)
Nusavest Pte. Ltd.(iv) 100 (146)
Regwise Ltd(iv) 100 (102)
Slate One LLC(i) 100 (101)
Standard Chartered Services Holdings Limited(v) 100 (1)
Standard Chartered Services Limited(viii) 100 (1)
Tungsten Custody Solutions FZE(iv) 100 (100)
Tungsten Custody Solutions Ltd(iv) 100 (63)
Tungsten Holding Limited(iv) 100 (63)
Zodia Markets Technology Services FZCO(iv) 0.1 (25)
Page 111
Joint ventures
Name Proportion of shares held (%) Footnotes
Olea Global Pte. Ltd.(iv) 46.655; 100(J) (145)
Global Digital Asset Holdings Limited(v) 100 (60)
Akashaverse Pte. Ltd.(iv) 50 (143)
K423 Limited(vii) 25.011 (104)
Lexarius Limited(iv) 50 (103)
Qlarion Ltd(iv) 100(A) (102)
Associates
Name Proportion of shares held (%) Footnotes
Clifford Capital Holdings Pte. Ltd.(v) 9.9 (109)
Verified Impact Exchange Holdings Pte. Ltd(i) 13.421 (110)
Seychelles International Mercantile Banking Corporation Limited.(i) 22 (66)
SWIAT GmbH(iv) 30.498 (67)
Partior Holdings Pte. Ltd.(i) 25; 25(H); 7.2461 (69)
China Bohai Bank Co., Ltd.(i) 16.263 (95 , 159)
Vault22 Solutions Holdings Ltd(iv) 100(E) (135)
Jumbotail Technologies Private Limited(iv) 94.117(AF);100(AG,AH) (105)
Significant investment holdings and other related undertakings
Name Proportion of shares held (%) Footnotes
Corrasi Covered Bonds (LM) Limited(i) 20 (3 , 158)
SCIAIGF Liquidating Trust(v) 43.96(AB) (112 , 158)
ATSC Cayman Holdco Limited(v) 5.272A;100(B) (140)
Actis Temple Stay Holdings (HK) Limited(v) 39.689(A); 39.689(B) (141 , 158)
Mikado Realtors Private Limited(ix) 26 (142)
Industrial Minerals and Chemical Co. Pvt. Ltd(ix) 26 (157)
Ascenta III(v) 31(G) (70)
Paxata, Inc.(iii) 40.74O;8.908(P) (64)
In liquidation
Name Proportion of shares held (%) Footnotes
Subsidiary Undertakings
Standard Chartered Masterbrand Licensing Limited(ix) 100 (122)
Birdsong Limited(ix) 100 (71)
Nominees One Limited(ix) 100 (71)
Nominees Two Limited(ix) 100 (71)
Songbird Limited(ix) 100 (71)
Standard Chartered Secretaries (Guernsey) Limited(ix) 100 (71)
Standard Chartered Trust (Guernsey) Limited(ix) 100 (71)
Standard Chartered Financial Services (Luxembourg) S.A.(ix) 100 (72)
Banco Standard Chartered en Liquidacion(ix) 100 (123)
Standard Chartered Uruguay Representacion S.A.(ix) 100 (73)
SC Transport Leasing 1 LTD(ix) 100 (144)
SC Transport Leasing 2 Limited(ix) 100 (144)
Standard Chartered Leasing (UK) Limited(ix) 100 (144)
Standard Chartered Trust (Hong Kong) Limited(i) 100 (82)
Associates ( )
Ascenta IV(ix) 39.1(Z) (74)
Page 112
Subsidiary/Associate undertakings and Significant investment holdings - Liquidated/dissolved/sold
Name Proportion of shares held (%) Footnotes
The SC Transport Leasing Partnership 1(vi) 100(Y) (1)
The SC Transport Leasing Partnership 2(vi) 100(Y) (1)
The SC Transport Leasing Partnership 3(vi) 100(Y) (1)
The SC Transport Leasing Partnership 4(vi) 100(Y) (1)
Standard Chartered Bank Cameroon S.A.(i) 100 (9)
Standard Chartered Bank Gambia Limited(i) 74.852 (15)
Assembly Payments HK Limited(iv) 100 (21 , 158)
Standard Chartered Research and Technology India Private Limited(iv) 100(A,R) (136)
CurrencyFair (Canada) Limited(iv) 100 (28,158)
Tawi Fresh Kenya Limited(iv) 100 (32)
Pegasus Dealmaking Pte. Ltd.(iv) 100 (145)
Promisepay (PTY) Ltd(iv) 100 (137 , 158)
Marina Partawati Shipping Pte. Ltd.(vi) 100 (152)
SC Ventures Management Consulting (Shenzhen) Limited(ix) 100 (154, 159)
Standard Chartered Leasing (UK) 3 Limited(vi) 100 (68)
Marina Opah Shipping Pte. Ltd.(vi) 100 (68)
Marina Cobia Shipping Pte. Ltd.(vi) 100 (68)
Marina Aquata Shipping Pte. Ltd.(vi) 100 (68)
Marina Aruana Shipping Pte. Ltd.(vi) 100 (68)
Cerulean Investments LP(ix) 100(Y) (68)
Standard Chartered IL&FS Management (Singapore) Pte. Limited(ix) 50 (51)
St Helen's Nominees India Private Limited(i) 100 (24)
Standard Chartered Private Equity Advisory (India) Private Limited(viii) 100 (24)
SBI Zodia Custody Co. Ltd(iv) 100 (68)
Fintech for International Development Ltd(ix) 58.901(A) (96)
Footnotes
Registered address
Address
1 1 Basinghall Avenue, London, EC2V 5DD, United Kingdom
2 2 More London Riverside, London, SE1 2JT, United Kingdom
3 5 Churchill Place, 10th floor, London, E14 5HU , United Kingdom
4 Robert Denholm House, Bletchingly Road, Nutfield, Redhill, RH1 4HW, United
Kingdom
5 Level 5, 345 George St, Sydney NSW 2000, Australia
6 Milsons Landing, Level 5, 6A Glen Street, Milsons Point NSW 2061, Australia
7 5th Floor Standard House Bldg, The Mall, Queens Road, PO Box 496, Gaborone,
Botswana
8 Avenida Brigadeiro Faria Lima, no 3.477, 6º andar, conjunto 62 - Torre Norte,
Condominio Patio Victor Malzoni, CEP 04538-133, Sao Paulo, Brazil
9 1155, Boulevard de la Liberté, Douala, B.P. 1784, Cameroon
10 66 Wellington Street, West, Suite 4100, Toronto Dominion Centre, Toronto ON
M5K 1B7, Canada
11 Level 1, 55 Collins Street, Melbourne VIC 3000, Australia
12 No. 35, Xinhuanbei Road, TEDA, Tianjin, 300457, China
13 Room 2619, No 9, Linhe West Road, Tianhe District, Guangzhou, China
14 Standard Chartered Bank Cote d'Ivoire, 23 Boulevard de la République, Abidjan
17, 17 B.P. 1141, Cote d'Ivoire
15 8 Ecowas Avenue, Banjul, Gambia
16 TaunusTurm, Taunustor 1 , 60310, Frankfurt am Main , Germany
17 Standard Chartered Bank Building, 87 Independance Avenue, Ridge, ACCRA,
Greater ACCRA, GA-016-4621, Ghana
18 Standard Chartered Bank Building, No. 87, Independence Avenue, P.O. Box 768,
Accra, Ghana
19 Standard Chartered Bank Ghana Limited, 87, Independence Avenue, Post Office
Box 678, Accra, Ghana
20 13/F Standard Chartered Bank Building, 4-4A Des Voeux Road Central, Hong Kong
21 31/F, Tower 2 Times Square, 1 Matheson St, Causeway Bay, Hong Kong
22 6th Floor, Tower 3 , DLF Downtown, 100 Feet Road, Tharamani, Chennai, Tamil
Nadu, 600113, India
23 90 M.G.Road, II Floor, Fort, Mumbai, Maharashtra, 400001, India
24 Ground Floor, Crescenzo Building, G Block, C 38/39 , Bandra Kurla Complex,
Bandra (East) , Mumbai , Maharashtra , 400051, India
25 Unit RET-R5-186, Detached Retail R5,, Plot No: JLT-PH2-RET-R5, Jumeirah,
United Arab Emirates
26 Vaishnavi Serenity, First Floor, No. 112, Koramangala Industrial Area, 5th
Block, Koramangala, Bangalore, Karnataka, 560095, India
27 The Icon Business Park Blok F No. 5, Desa/Kelurahan, Sampora Kec, Cisauk, Kab
Tangerang Provinsi, Banten, 15345, Indonesia
Page 113
Address
28 91 Pembroke Road, Dublin 4, Ballsbridge, Dublin, DO4 EC42, Ireland
29 Third Floor, St. George's Court, Upper Church Street, Douglas, IM1 1EE, Isle
of Man
30 21/F, Sanno Park Tower, 2-11-1 Nagatacho, Chiyoda-ku, Tokyo, 100-6155, Japan
31 15 Castle Street, St Helier, JE4 8PT, Jersey
32 Standard Chartered@Chiromo, 48 Westlands Road, P. O. Box 30003 - 00100,
Nairobi , Kenya
33 Atrium Building, Maarad Street, 3rd Floor, P.O. Box 11-4081 Raid El Solh,
Beirut Central District, Lebanon
34 Level 25, Equatorial Plaza, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
35 Suite 18-1, Level 18, Vertical Corporate Tower B, Avenue 10, The Vertical,
Bangsar South City , No. 8, Jalan Kerinchi , 59200 Kuala Lumpur, Wilayah
Persekutuan, Malaysia
36 Level 7, Mercu 3. No. 3, Jalan Bangsar, KL ECO City, 59200 Kuala Lumpur,
Malaysia
37 Level 13, Menara 1 Sentrum 201, Jalan Tun Sambanthan, Brickfields, 50470 Kuala
Lumpur, Malaysia
38 6th Floor, Standard Chartered Tower , 19, Bank Street, Cybercity, Ebene,
72201, Mauritius
39 Mondial Management Services Ltd, Unit 2L, 2nd Floor Standard Chartered Tower,
19 Cybercity, Ebene, Mauritius
40 Standard Chartered Bank Nepal Limited, Madan Bhandari Marg. Ward No.31,
Kathmandu Metropolitan City, Kathmandu District, Bagmati Province, Kathmandu,
44600, Nepal
41 PromisePay, 4 All good Place, Rototuna North, Hamilton, 3210, New Zealand
42 142, Ahmadu Bello Way, Victoria Island, Lagos, 101241, Nigeria
43 P.O. Box No. 5556, I.I. Chundrigar Road , Karachi , 74000, Pakistan
44 8th Floor, Makati Sky Plaza Building 6788, Ayala Avenue San Lorenzo, City of
Makati, Fourth District, National Capi, 1223, Philippines
45 Rondo Ignacego Daszyńskiego 2B, 00-843, Warsaw, Poland
46 8 Marina Boulevard, #25-01 Marina Bay Financial Centre, 018981, Singapore
47 7 Changi Business Park Crescent, #03-00 Standard Chartered @ Changi, 486028,
Singapore
48 8 Marina Boulevard, #27-01 Marina Bay Financial Centre Tower 1, 018981,
Singapore
49 1 Robinson Road, #17-00, AIA Tower, 048542, Singapore
50 38 Beach Road, #29-11 South Beach Tower, 189767, Singapore
51 Abogado Pte Ltd, No. 8 Marina Boulevard, #05-02 MBFC Tower 1, 018981,
Singapore
52 2nd Floor, 115 West Street, Sandton, Johannesburg, 2196, South Africa
53 1 Floor, International House, Shaaban Robert Street / Garden Avenue, PO Box
9011, Dar Es Salaam, Tanzania, United Republic of
54 No. 140, 11th, 12th and 14th Floor, Wireless Road, Lumpini, Patumwan, Bangkok,
10330, Thailand
55 Buyukdere Cad. Yapi Kredi Plaza C Blok, Kat 15, Levent, Istanbul, 34330,
Turkey
56 Standard Chartered Bank Bldg, 5 Speke Road, PO Box 7111, Kampala, Uganda
57 14 Mackinnon Road, Nakasero, Kampala, 141769, Uganda
58 Arjaan Office Towers, Office 105, Dubai Media City, United Arab Emirates
59 Unit IH-00-01-07-OF-05, Level 7, IH-00-01-CP-05, Dubai International Financial
Centre, Dubai, United Arab Emirates
60 Standard Chartered Bank, 7th Floor, Building One, Gate Precinct, DIFC, PO Box
999, Dubai, United Arab Emirates
61 Part of Level 15, Standard Chartered Bank Building, Plot 8, Burj Downtown,
Dubai, United Arab Emirates
62 Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United
States
63 Office 1809, 18 Floor Sky Tower, Shams Abu Dhabi, Al Reem Island, Abu Dhabi,
United Arab Emirates
64 251 Little Falls Drive, Wilmington DE 19808, United States
65 Level 3, #CP1.L01 and CP2.L01, Capital Place, 29 Lieu Giai, Ngoc Ha Ward,
Hanoi, 10000, Vietnam
66 Victoria House, State House Avenue, Victoria, MAHE, Seychelles
67 Gervinusstrasse 17, 60322, Frankfurt am Main, Hesse, Germany
68 Ground Floor, Two Dockland Central, Guild Street, North Dock, Dublin, D01
K2C5, Ireland
69 60B, Orchard Road, #06-18, Tower 2, The Atrium @ Orchard, 238891, Singapore
70 17F, 47, Jong-ro, Jongno-gu, (17F, 100, Gongpyeong-dong, Jongno-gu), Seoul,
Korea, Republic of
71 Bucktrout House, Glategny Esplanade, St Peter Port, GY1 3HQ, Guernsey
72 30 Rue Schrobilgen, 2526, Luxembourg
73 Luis Alberto de Herrera 1248, Torre II, Piso 11, Esc. 1111, Uruguay
74 5-4, Bongeunsa-ro 29-gil, Gangnam-gu, Seoul, 06109, Korea
75 Standard Chartered Tower, 201 Century Avenue, Pudong, Shanghai, 200120, China
76 1201 1-2, 15-16, 12/F, Unit No.1, Building No.1, No. 1 Dongsanhuan Zhong Road,
Chaoyang District, Beijing, China
77 18/F., Standard Chartered Tower, 388 Kwun Tong Road, Kwun Tong, Kowloon, Hong
Kong
78 15/F., Two International Finance Centre, No. 8 Finance Street, Central, Hong
Kong
79 39/F., Oxford House, Taikoo Place, 979 King's Road, Quarry Bay, Hong Kong
80 32/F., 4-4A Des Voeux Road, Central , Hong Kong
81 14th Floor, One Taikoo Place, 979 King's Road, Quarry Bay, Hong Kong
82 14/F, Standard Chartered Bank Building, 4-4A Des Voeux Road , Central, Hong
Kong
83 IFC 5, St Helier, JE1 1ST, Jersey
84 47, Jong-ro, Jongno-gu, Seoul, 110-702, Korea, Republic of
Page 114
Address
85 2F, 47, Jong-ro, Jongno-gu, Seoul, Korea, Republic of
86 Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960,
Marshall Islands
87 3rd Floor Main SCB Building, I.I Chundrigar Road, Karachi, Sindh, 74000,
Pakistan
88 1F, No.177 & 3F-6F, 18F, No.179, Liaoning Street, Zhongshan Dist., Taipei,
104, Taiwan (Province of China)
89 C/O Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
90 16 Raffles Quay, #16-02, Hong Leong Building, 048581, Singapore
91 Suite 12100, 12/F., YF Life Tower, 33 Lockhart Road, Wan Chai, Hong Kong
92 1st Floor, UB Plaza, No. 1 & 2, Vittal Mallya Road, Bengalur, India
93 12th Floor, Crescenzo Business District,, Plot no. C-38/39, G-Block,, Bandra -
Kurla Complex, Bandra East,, Mumbai, Maharashtra, 400051, India
94 16th Floor, WeWork Hub 71, Al Khatem Tower, ADGM Square, Al Maryah Island, Abu
Dhabi, United Arab Emirates
95 218 Haihe East Road, Hedong District, Tianjin, 300012, China
96 Parker Andrews Ltd, 5th Floor. The Union Building, 51-59 Rose Lane, Norwich,
NR1 1BY
97 Unit 1 - 127A, WeWork Futura, Magarpatta Road, Kirtane Baug, Hadpsar I.E.,
Pune - 411013, Maharashtra, India
98 L17-11, Floor 17, Vincom Center, 72 Le Thanh Ton, Ben Nghe Ward, District 1,
Ho Chi Minh City, Vietnam
99 30th floor, One Taikoo Place, 979 King's Road, Hong Kong, Hong Kong
100 5.01 and 5.02 Convention Tower, DWTC, Dubai, United Arab Emirates
101 Al Tamimi & Company International Limited, Tornado Tower, No. 17, 19th
Floor, Doha, Qatar
102 100 Longwater Avenue, Reading, Berkshire, RG2 6GP, United Kingdom
103 DD-14-116-033, 15, Al Khatem Tower, WeWork Hub 71, Abu Dhabi Global Market
Square, Abu Dhabi, Al Maryah Island, United Arab Emirates
104 Office 7, 35-37 Ludgate Hill, London, EC4M 7JN
105 Eastland Citadel, 6th Floor, No.102, Hosur Road, Madiwala Check post,
Bangalore, 560 029, India
106 53 Boulevard Royal, Grand Duchy of Luxembourg, 2449, Luxembourg
107 1st Floor, 6-8 Eastcheap, London, EC3M 1AE
108 G01-02, Wisma Haji Mohd Taha Building, Jalan Gadong, BE4119, Brunei Darussalam
109 38 Beach Road, #19-11 South Beach Tower, 189767, Singapore
110 10 Marina Boulevard #08-08, Marina Bay Financial Centre, 018983, Singapore
111 1095 Avenue of Americas, New York City NY 10036, United States
112 3 Jalan Pisang, c/o Watiga Trust Ltd, 199070, Singapore
113 c/o Ocorian Corporate Services (Mauritius) Ltd, 6th Floor, Tower A,1, Exchange
Square, Wall Street, Ebene, Mauritius - 72201, Mauritius
114 c/o Maples Finance Limited, PO Box 1093 GT, Queensgate House, Georgetown,
Grand Cayman, Cayman Islands
115 Level 1, Wisma Standard Chartered, Jalan Teknologi 8, , Taman Teknologi
Malaysia, Bukit Jalil, , 57000 Kuala Lumpur, Wilayah Persekutuan, Malaysia
116 Al Faisaliah Office Tower Floor No 7 (T07D) , King Fahad Highway, Olaya
District, P.O box 295522 , Riyadh, 11351 , Saudi Arabia
117 No. 2734, 3rd Floor, Sector - I, HSR Layout, Bangalore, 560102, India
118 The Company's Registered Office, Vistra Corporate Services Centre, Wickhams
Cay II, Road Town, Tortola, VG1110, Virgin Islands, British
119 Standard Chartered House, Stand No. 4642, Corner of Mwaimwene Road and Addis
Ababa Drive, Lusaka, Lusaka, 10101, Zambia
120 Units 1101B (Office use only), No. 235 Tianhebei Rd., Tianhe District,
Guangzhou City, Guangdong Province, China
121 Unit 802B, 803, 1001A,1002B,1003-1005,1101-1105, 201-1205,1302C,1303, No. 235
Tianhe North Road, Tianhe District, Guangzhou City, Guangdong Province, China
122 C/O Teneo Financial Advisory Limited, The Colmore Building, 20 Colmore Circus,
Queensway, Birmingham, B4 6AT, United Kingdom
123 Jiron Huascar 2055, Jesus Maria, Lima, 15072, Peru
124 10 Earlsfort Terrace, Dublin 2, Dublin , D02 T380, Ireland
125 TMF Trust Labuan Limited, Brumby Centre, Lot 42, Jalan Muhibbah, 87000 Labuan
F.T., Malaysia
126 c/o King & Wood Mallesons, Level 61, Governor Phillip Tower, 1 Farrer
Place, Sydney NSW 2000, Australia
127 2402B, 24th Floor, Tamouh Tower, Tamouh, Abu Dhabi, Al Reem Island, United
Arab Emirates
128 2 Place de Paris, 2314, Luxembourg
129 No 1 Grenville Street, St Helier, JE2 4UF, Jersey
130 77 Robinson Road, #25-00 Robinson 77, 068896, Singapore
131 Level 22, 120 Spencer Street, Melbourne VIC 3000, Australia
132 Room 1915, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong
133 One Central Plaza, Temple Bar, Dublin 2, Dublin, D02 EF64, Ireland
134 27 Fitzwilliam Street, Dublin, D02 TP23, Ireland
135 Unit 705, Innovation One, Dubai International Financial Centre, Dubai, United
Arab Emirates
136 No. 2734, Sector-I, HSR Layout, HSR Layout, Bangalore , Bangalore South,
Karnataka, 560102, India
137 1st Floor Building 33, Waterford Office Park, Waterford Drive, Fourways,
Gauteng, 2191, South Africa
138 Stand No. 4642 , Corner of Mwaimwena Road and Addis Ababa Drive, Lusaka,
10101, Zambia
139 BurDubai First Business Center Office number B2007-258, Dubai, United Arab
Emirates
Page 115
Address
140 Intertrust Corporate Services (Cayman) Limited, 190 Elgin Avenue,George Town,
Grand Cayman , KY1-9005, Cayman Islands
141 Unit 605-07, 6/F Wing OnCentre, 111 Connaught Road, Central,Sheung Wan, Hong
Kong
142 1221 A, Devika Tower, 12th Floor, 6 Nehru Place, New Delhi 110019
143 16 Raffles Quay, #18-02, Hong Leong Building, 048581, Singapore
144 The Colmore Building, 20 Colmore Circus, Queensway, Birmingham, B4 6AT, United
Kingdom
145 9 Raffles Place, #26-01 Republic Plaza, 048619 , Singapore
146 9 Raffles Place , #18-21 Republic Plaza , 048619, Singapore
147 Acclime Singapore Pte. Ltd, 9 Raffles Place #18-21, Republic Plaza, 048619,
Singapore
148 WeWork, One Central Plaza, Dame Street, Dublin 2, Dublin, D02 K7K5, Ireland
149 IQEQ Corporate Services (Mauritius) Ltd, 33, Edith Cavell Street, Port Louis,
11324, Mauritius
150 One, Central Plaza, Dame Street, Dublin 2, Dublin, D02 K7K5, Ireland
151 Level C, No. 888 2nd Huanhu West Road, Nanhui New Town, Pudong New Area,
Shanghai
152 8 Marina Boulevard, Level 26, Marina Bay Financial Centre, Tower 1, 018981,
Singapore
153 12th Floor, Parinee Crescenzo Building, Plot C-38 & 39, G Block Bandra (E)
Opp. MCA Ground, Mumbai, 400051, India
154 Unit 8C-17B, Xinlikang Building, 3044 Xinghai Blvd, Nanshan District,
Shenzhen, China
155 Dedicated desk # 14-123-039, 15th Floor, Al Khatem Tower, ADGM Square, Abu
Dhabi, United Arab Emirates
156 6 Battery Road #13-01, 049909, Singapore
157 4thFloor, 274, Chitalia House, Dr. Cawasji Hormusji Road, Dhobi Talao, Mumbai
City, Maharashtra, India 400 002, Mumbai, 400 002, India
Other notes
Other notes
158 The Group has determined that these undertakings are excluded from being
consolidated into the Groups accounts, and do not meet the definition of a
Subsidiary under IFRS. See note 32 for the consolidation policy and disclosure
of the undertaking.
159 Registered as a Limited company under the Law of China
160 Limited liability company
161 The Group has determined the prinicipal place of operation to be United
Kingdom
162 The Group has determined the prinicipal place of operation to be Hong Kong
163 Company is exempt from the requirements of the companies Act relating to the
audit of individual accounts by virtue of S479A of the Companies Act 2006
Company names and associated numbers of the subsidiaries taking an audit
exemption for the year ended 31 December 2025 are Standard Chartered Holdings
Limited 02426156, Standard Chartered I H Limited 08414408, Finventures UK
Limited 04275894, Standard Chartered Strategic Investments Limited 01388304,
Standard Chartered NEA Limited 05345091, SCMB Overseas Limited 01764223,
Standard Chartered Africa Limited 00002877and Standard Chartered Securities
(Africa) Holdings Limited 05843604.
In line with section 479C of the Companies Act 2006, the Parent undertaking
(Standard Chartered PLC Company) guarantees all outstanding liabilities to
which the subsidiary company is subject at the end of the financial year
including external liabilities of Finventures UK Limited ($2.3million),
Standard Chartered NEA Limited ($22.0million) and SCMB Overseas Limited
($6.3million)
164 Directly held related undertaking
165 Group's ultimate ownership for CurrencyFair entities is 43.422%
Page 116
Description of shares
Description
A Class A Ordinary shares
B Class B Ordinary shares
C Class C Ordinary shares
D Class D Ordinary shares
E Class A2 shares
F Class B Shares
G Class B Equity interest
H Series A Preferred
I Series B Preferred
J Preference shares
K Series A preference shares
L Series B preference shares
M Redeemable preference shares
N Series B Redeemable preference shares
O Series C2 preference shares
P Series C3 preference shares
Q Redeemable non-cumulative preference shares
R Compulsory convertible cumulative preference shares
S Irredeemable convertible preference shares
T Irredeemable non-cumulative preference shares
U Class B Non-cumulative preference shares
V Class C Non-cumulative preference shares
W Class D Non-cumulative preference shares
X Charter capital
Y Limited Partnership
Z Partnership Interest
AA Membership interest
AB Trust
AC Uncertificated
AD Deferred shares
AE Guarantee
AF D1 Preference
AG S1 Preference
AH S2 Preference
Business activity
Activity
i Banking & Financial Services
ii Commercial real estate
iii Data Analytics
iv Digital Venture
v Investment holding company
vi Leasing and Finance
vii Research & development
viii Support Services
ix Others
Save for those disclosed in this Annual Report, there were no other
significant investments held, nor were there material acquisitions or
disposals of subsidiaries during the year under review. Apart from those
disclosed in this Annual Report, there were no material investments or
additions of capital assets authorised by the Board at the date of this Annual
Report.
Page 117
42. Dealings in Standard Chartered PLC listed securities
This is also disclosed as part of Note 28 Share capital, other equity and
reserves.
Except as disclosed, neither the Company nor any of its subsidiaries has
bought, sold or redeemed any securities of the Company listed on The Stock
Exchange of Hong Kong Limited, on another exchange, by private arrangement, or
by way of a general offer during the period. Details of the shares purchased
and held by the trusts are set out below.
2004 Trust
2025 2024
Shares purchased during the period 24,477,541 19,604,557
Market price of shares purchased ($million) 508 223
Shares held at the end of the period 16,474,859 17,589,987
Maximum number of shares held during the period 25,082,882 28,085,688
43. Corporate governance
The directors confirm that Standard Chartered PLC (the Company) has complied
with all of the provisions set out in the 2018 UK Corporate Governance Code
during the year ended 31 December 2025. The directors also confirm that,
throughout the year, the Company has complied with the code provisions set out
in the Hong Kong Corporate Governance Code contained in Appendix C1 of the
Hong Kong Listing Rules. The Group confirms that it has adopted a code of
conduct regarding directors' securities transactions on terms no less exacting
than required by Appendix C3 of the Hong Kong Listing Rules and that the
directors of the Company have complied with the required standards of the
adopted code of conduct. The directors also confirm that the announcement of
these results has been reviewed by the Company's Audit Committee.
Page 118
Shareholder information
Dividend and interest payment dates
Ordinary shares Final dividend
Results and dividend announced 24 February 2026
Ex-dividend date 18 (HK) 19 (UK) March 2026
Record date for dividend 20 March 2026
Last date to amend currency election instructions for cash dividend* 16 April 2026
Dividend payment date 14 May 2026
* In either US dollars, pound sterling or Hong Kong dollars.
Preference shares 1st half yearly dividend 2nd half yearly dividend
73 ∕8 per cent non-cumulative irredeemable preference shares of £1 1 April 2026 1 October 2026
81 ∕4 per cent non-cumulative irredeemable preference shares of £1 each 1 April 2026 1 October 2026
6.409 per cent non-cumulative redeemable preference shares of $5 each 30 January and 30 April 2026 30 July and 30 October 2026
7.014 per cent non-cumulative redeemable preference shares of $5 each 30 January 2026 30 July 2026
Annual General Meeting (AGM)
The AGM will be held on Thursday, 7 May 2026 at 11.00am UK time (6.00pm Hong
Kong time). Further details regarding the format, location and business to be
transacted at the meeting will be disclosed within the 2026 Notice of AGM.
Interim results
The interim results will be announced to the London Stock Exchange and the
Stock Exchange of Hong Kong Limited and put on the Company's website.
Country-by-country reporting
In accordance with the requirements of the Capital Requirements
(country-by-country reporting) Regulations 2013, the Group will publish
additional country-by-country information in respect of the year ended 31
December 2025, on or before 31 December 2026. We have also published our UK
tax strategy.
Pillar 3 reporting
In accordance with the Pillar 3 disclosure requirements, the Group has
published the Pillar 3 disclosures in respect of the year ended 31 December
2025.
ShareCare
ShareCare is available to shareholders on the Company's UK register who have a
UK address and bank account. It allows you to hold your Standard Chartered PLC
shares in a nominee account. Your shares will be held in electronic form, so
you will no longer have to worry about keeping your share certificates safe.
If you join ShareCare, you will still be invited to attend the Company's AGM
and you will receive any dividend at the same time as everyone else. ShareCare
is free to join and there are no annual fees to pay.
Donating shares to ShareGift
Shareholders who have a small number of shares often find it uneconomical to
sell them. An alternative is to consider donating them to the charity
ShareGift (registered charity 1052686), which collects donations of unwanted
shares until there are enough to sell and uses the proceeds to support UK
charities. There is no implication for capital gains tax (no gain or loss)
when you donate shares to charity, and UK taxpayers may be able to claim
income tax relief on the value of their donation.
Bankers' Automated Clearing System
Dividends can be paid straight into your bank or building society account.
Registrars and shareholder enquiries
If you have any enquiries relating to your shareholding and you hold your
shares on the UK register, please contact our registrar at
investorcentre.co.uk. Alternatively, please contact Computershare Investor
Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZZ or call the
shareholder helpline number on 0370 702 0138. If you hold your shares on the
Hong Kong branch register and you have enquiries, please contact Computershare
Hong Kong Investor Services Limited, 17M Floor, Hopewell Centre, 183 Queen's
Road East, Wan Chai, Hong Kong.
Substantial shareholders
The Company and its shareholders have been granted partial exemption from the
disclosure requirements under Part XV of the Securities and Futures Ordinance
(SFO). As a result of this exemption, shareholders, directors and chief
executives, no longer have an obligation under Part XV of the SFO (other than
Divisions 5, 11 and 12 thereof) to notify the Company of substantial
shareholding interests, and the Company is no longer required to maintain a
register of interests of substantial shareholders under section 336 of the
SFO, nor a register of directors' and chief executives' interests under
section 352 of the SFO. The Company is, however, required to file with The
Stock Exchange of Hong Kong Limited any disclosure of interests made in the
UK.
Page 119
Taxation
The Company has a Group-wide policy on tax strategy and governance, which
details that we seek to apply our approach to tax in all jurisdictions in
which we operate and are committed to paying all taxes legally due. This
policy is approved by the Board annually and is available on our website
sc.com/ regulatory-disclosures
No tax is currently withheld from payments of dividends by Standard Chartered
PLC. Shareholders and prospective purchasers should consult an appropriate
independent professional adviser regarding the tax consequences of an
investment in shares in light of their particular circumstances, including the
effect of any national, state or local laws.
Chinese translation
If you would like a Chinese language version of the 2025 Annual Report, please
contact Computershare Hong Kong Investor Services Limited, 17M Floor, Hopewell
Centre, 183 Queen's Road East, Wan Chai, Hong Kong.
二〇二五年年報之中文譯本可向香港中央證券登記有限公司索取,
地址：香港灣仔皇后大道東183號合和中心17M樓。
Shareholders on the Hong Kong branch register who have asked to receive
corporate communications in either Chinese or English can change this election
by contacting Computershare. If there is any inconsistency between the English
version of this document and any translation of the English version, the
English version shall prevail.
Electronic communications
If you hold your shares on the UK register and in future you would like to
receive the Annual Report electronically rather than by post, please register
online at: www.investorcentre.co.uk. Click on 'register now' and follow the
instructions. You will need to have your Shareholder or ShareCare reference
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you will be able to manage your shareholding online and change your bank
mandate or address information.
Important notices
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.
Page 120
Non-IFRS performance measures and alternative performance measures
The Group financial statements have been prepared in accordance with
UK-adopted international accounting standards and International Financial
Reporting Standards (IFRS) as adopted by the European Union. Standard
Chartered PLC's financial statements have been prepared in accordance with
UK-adopted international accounting standards (IAS) as applied in conformity
with section 408 of the Companies Act 2006. This document may contain
financial measures and ratios not specifically defined under IFRS or 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 the
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.
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.
Basis of preparation and caution regarding data limitations
This section is specifically relevant to, among others, the sustainability and
climate models, calculations and disclosures throughout this report. The
information contained in this document has been prepared on the following
basis:
i disclosures in the Strategic report, Financial review, Sustainability
review, Directors' report, Risk review and Capital review and Supplementary
information are unaudited unless otherwise stated;
ii all information, positions and statements set out in this document are
subject to change without notice;
iii the information included in this document does not constitute any
investment, accounting, legal, regulatory or tax advice or an invitation or
recommendation to enter into any transaction;
iv the information included in this document may have been prepared using
models, methodologies and data that are subject to certain limitations. These
limitations include: the limited availability of reliable data, data gaps and
the nascent nature of the methodologies and technologies underpinning this
data; the limited standardisation of data (given, among other things, limited
international coordination on data and methodology standards); and future
uncertainty (due, among other things, to changing projections relating to
technological development and global and regional laws, regulations and
policies, and the current inability to make use of strong historical data);
v models, external data and methodologies used in information included in
this document are or could be subject to adjustment which is beyond our
control;
vi any opinions and estimates should be regarded as indicative,
preliminary and for illustrative purposes only. Expected and actual outcomes
may differ from those set out in this document (as explained in the
'Forward-looking statements' section above);
vii some of the related information appearing in this document may have
been obtained from public and other sources and, while the Group believes such
information to be reliable, it has not been independently verified by
the Group and no representation or warranty is made by the Group as to its
quality, completeness, accuracy, fitness for a particular purpose or
noninfringement of such information;
viii for the purposes of the information included in this document, a
number of key judgements and assumptions have been made. It is possible that
the assumptions drawn, and the judgement exercised may subsequently turn out
to be inaccurate. The judgements and data presented in this document are not a
substitute for judgements and analysis made independently by the reader;
ix any opinions or views of third parties expressed in this document
are those of the third parties identified, and not of the Group, its
affiliates, directors, officers, employees or agents. By incorporating or
referring to opinions and views of third parties, the Group is not, in any
way, endorsing or supporting such opinions or views;
x while the Group bears primary responsibility for the information
included in this document, it does not accept responsibility for the external
input provided by any third parties for the purposes of developing the
information included in this document;
xi the data contained in this document reflects available information
and estimates at the relevant time;
Page 121
xii where the Group has used any methodology or tools developed by a
third party, the application of the methodology or tools (or consequences of
its application) shall not be interpreted as conflicting with any legal or
contractual obligations and such legal or contractual obligations shall take
precedence over the application of the methodology or tools;
xiii where the Group has used any underlying data provided or sourced by a
third party, the use of the data shall not be interpreted as conflicting with
any legal or contractual obligations and such legal or contractual obligations
shall take precedence over the use of the data;
xiv this Important Notice is not limited in applicability to those
sections of the document where limitations to data, metrics and methodologies
are identified and where this Important Notice is referenced. This Important
Notice applies to the whole document;
xv further development of reporting, standards or other principles could
impact the information included in this document or any metrics, data and
targets included in this document (it being noted that ESG reporting and
standards are subject to rapid change and development); and
xvi while all reasonable care has been taken in preparing the
information included in this document, neither the Group nor any of its
affiliates, directors, officers, employees or agents make any representation
or warranty as to its quality, accuracy or completeness, and they accept no
responsibility or liability for the contents of this information, including
any errors of fact, omission or opinion expressed.
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 that
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.
Copyright in all materials, text, articles and information contained in this
document (other than third-party materials, text, articles and information) is
the property of, and may only be reproduced with permission of an authorised
signatory of, the Group.
Copyright in materials, text, articles and information created by third
parties and the rights under copyright of such parties are hereby
acknowledged. Copyright in all other materials not belonging to third parties
and copyright in these materials as a compilation vests and shall remain at
all times copyright of the Group and should not be reproduced or used except
for business purposes on behalf of the Group or save with the express prior
written consent of an authorised signatory of the Group.
All rights reserved.
Page 122
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