REG - Standard Chrtrd PLC - SCPLC Half Year Results 2025 - Part 2
31/07/2025 07:01
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RNS Number : 2973T Standard Chartered PLC 31 July 2025
Standard Chartered PLC - Half Year Results 2025 - Part 2
Table of content
Risk review 02
Capital review 50
Statement of directors' responsibilities 56
Independent review report to Standard Chartered PLC 57
Financial statements 59
Notes to the financial statements 65
Other supplementary information 108
Shareholder information 118
Important notices 120
Glossary 122
Unless another currency is specified, the word 'dollar' or symbol '$' in this
document means US dollar and the word 'cent' or symbol 'c' means one-hundredth
of one US dollar.
The information within Performance highlights to Capital review and Other
supplementary information to Glossary is unreviewed.
Unless the context requires, within this document, 'China' refers to the
People's Republic of China and, for the purposes of this document only,
excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special
Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to
the Republic of Korea.
Within the tables in this report, blank spaces indicate that the number is not
disclosed, dashes indicate that the number is zero and nm stands for not
meaningful. Standard Chartered PLC is incorporated in England and Wales with
limited liability. Standard Chartered PLC is headquartered in London.
The Group's head office provides guidance on governance and regulatory
standards. Standard Chartered PLC stock codes are: HKSE 02888 and LSE STAN.LN.
- page 01 -
Risk review and Capital review
Risk Index
Risk profile Credit Risk
Basis of preparation
Credit risk overview
Impairment model
Staging of financial instruments
IFRS 9 Expected Credit Loss (ECL) principles and approaches
Summary of Credit Risk performance
Maximum exposure to Credit Risk
Analysis of financial instrument by stage
Credit quality analysis
• Credit quality by client segment
• Credit quality by key geography
Movement in gross exposures and credit impairment for loans and advances, debt
securities, undrawn commitments and financial guarantees
Analysis of stage 2 balances
Credit impairment charge
Problem credit management and provisioning
• Forborne and other modified loans by client segment
• Forborne and other modified loans by key geography
Credit risk mitigation
• Collateral held on loans and advances
• Collateral - Corporate & Investment Banking
• Collateral - Wealth & Retail Banking
• Mortgage loan-to-value ratios by geography
• Collateral and other credit enhancements possessed or called upon
• Other Credit Risk mitigation
Other portfolio analysis
• Credit quality by industry
• Industry and retail products analysis of loans and advances by key
geography
• High-carbon sectors
• Commercial real estate
• Debt securities and other eligible bills
IFRS 9 ECL methodology
Traded Risk
Market Risk movements
Counterparty Credit Risk
Derivative financial instruments Credit Risk mitigation
Liquidity and Funding Risk
Liquidity and Funding Risk metrics
Liquidity analysis of the Group's balance sheet
Interest Rate Risk in the Banking Book
Operational and Technology Risk
Operational and Technology Risk profile
Other principal risks
Capital Capital summary
• Capital ratio
• Capital base
• Movement in total capital
Risk-weighted asset
Leverage ratio
The following parts of the Risk review and Capital review form part of these
financial statements and are reviewed by the external auditors:
a) Risk review: Disclosures marked as 'reviewed' from the start of the 'Credit
Risk' section to the end of other principal risks in the same section; and
b) Capital review: Tables marked as 'reviewed' from the start of 'Capital
base' to the end of 'Movement in total capital', excluding 'Total
risk-weighted assets'.
- page 02 -
Risk review
Credit Risk (reviewed)
Basis of preparation
Unless otherwise stated, the balance sheet and income statement information
within this section is based on the financial booking location. The accounting
policy for the presentation of geographic information has been changed in 2025
as set out in Note 1 to the financial statements, and prior period amounts
have been re-presented in line with this change.
Loans and advances to customers and banks held at amortised cost in this 'Risk
profile' section include reverse repurchase agreement balances held at
amortised cost, per Note 15 Reverse repurchase and repurchase agreements
including other similar secured lending and borrowing.
Credit Risk overview
Credit Risk is the potential for loss due to the failure of a counterparty to
meet its agreed obligations to pay the Group. Credit exposures arise from both
the banking and trading books.
Impairment model
IFRS 9 mandates an impairment model that requires the recognition of ECL on
all financial debt instruments held at amortised cost, Fair Value through
Other Comprehensive Income (FVOCI), undrawn loan commitments and financial
guarantees.
Staging of financial instruments
Financial instruments that are not already credit-impaired are originated into
stage 1 and a 12-month expected credit loss provision is recognised.
Instruments will remain in stage 1 until they are repaid, unless they
experience significant credit deterioration (stage 2) or they become
credit-impaired (stage 3).
Instruments will transfer to stage 2 and a lifetime expected credit loss
provision is recognised when there has been a significant change in the Credit
Risk compared to what was expected at origination. The framework used to
determine a Significant increase in Credit Risk (SICR) is set out below.
Stage 1
• 12-month ECL
• Performing
Stage 2
• Lifetime expected credit loss
• Performing but has exhibited SICR
Stage 3
• Credit-impaired
• Non-performing
IFRS 9 ECL principles and approaches
The main methodology principles and approach adopted by the Group are set out
in the following table. Refer to the 2024 Annual Report for the 'Application
of lifetime ECL' on page 236, 'Sensitivity of ECL calculation to macroeconomic
variables' on page 242, 'SICR' on page 244, 'Assessment of credit-impaired
financial assets' on page 245 and 'Governance of Post Model Adjustments and
application of expert credit judgement in respect of ECL' on page 246.
Title Supplementary Information
Approach for determining ECL • IFRS 9 ECL methodology
Key assumptions and judgements in determining ECL • Incorporation of forward-looking information
• Forecast of key macroeconomic variables underlying the ECL calculation
and the impact of non-linearity
• Impact of multiple economic scenarios
• Judgemental adjustments and management overlays
Transfers between stages • Movement in gross exposures and credit impairment
Modified financial assets • Forborne and other modified loans
- page 03 -
Summary of Credit Risk Performance
Maximum Exposure
The Group's on-balance sheet maximum exposure to Credit Risk increased by
$50.4 billion to $873.8 billion (31 December 2024: $823.4 billion). Cash and
balances at Central banks increased by $16.7 billion to $80.2 billion (31
December 2024: $63.4 billion) due to increased placements. Loans to banks held
at amortised cost decreased by $1.2 billion to $42.4 billion (31 December
2024: $43.6 billion). Debt securities (not held at fair value through profit
or loss) increased by $14.1 billion to $157.6 billion (31 December 2024:
$143.6 billion) as exposures increased due to investments in high quality
liquid assets. Loans and advances to customers increased by $5.7 billion to
$286.7 billion (31 December 2024: $281.0 billion). Fair Value through profit
and loss increased by $22.0 billion to $194.1 billion (31 December 2024: $172
billion), largely due to an increase in debt securities and reverse repos.
Off-balance sheet instruments increased by $23.7 billion to $296.9 billion (31
December 2024: $273.2 billion), due to an increase in undrawn commitments,
financial guarantees and other equivalents. Derivative financial instruments
decreased by $17.2 billion to $64.2 billion (31 December 2024: $81.5 billion)
mainly due to the weakening of the US dollar.
Loans and Advances
94 per cent (31 December 2024: 94 per cent) of the Group's gross loans and
advances to customers remain in stage 1 at $273.2 billion (31 December 2024:
$269.1 billion), reflecting our continued focus on high-quality origination.
For WRB, stage 1 balances increased by $7.3 billion to $124.3 billion (31
December 2024: $117 billion), mainly due to a $5.2 billion increase in the
mortgage portfolio across Korea, Taiwan and Singapore and $2.5 billion
increase in Secured wealth products due to the higher demand in Singapore. For
CIB, stage 1 balances remained stable at $129.1 billion (31 December 2024:
$128.7 billion). For Central and other items, stage 1 balances decreased by
$3.7 billion to $18.3 billion (31 December 2024: $22 billion) due to exposure
reductions in the Government sector.
Stage 2 loans and advances to customers increased by $1.9 billion to $12.5
billion (31 December 2024: $10.6 billion). For WRB, stage 2 balances remained
stable at $2.1 billion (31 December 2024: $1.9 billion). For CIB, stage 2
balances increased by $1.7 billion to $10.4 billion (31 December 2024: $8.6
billion), due to exposure increases to Sovereign related and Commercial real
estate clients.
Stage 3 loans and advances decreased by $0.1 billion to $6.1 billion (31
December 2024: $6.2 billion) due to repayments in CIB, and in Central and
other items, which was offset by an increase in WRB mainly due to secured
lending. While the WRB stage 3 cover ratio before collateral remained stable
at 47.0 per cent (31 December 2024: 46.9 per cent), the stage 3 cover ratio
after collateral increased to 85.6 per cent (31 December 2024: 83.1 per cent)
driven by the increase of credit impairment provisions and collateral value.
Analysis of Stage 2
The key SICR driver which caused exposures to be classified as stage 2 remains
an increase in probability of default (PD). The proportion of CIB exposures in
stage 2 increased due to PD driven changes. In WRB, the exposures in stage 2
loans with more than 30 days past due remained stable at $0.2 billion (31
December 2024: $0.2 billion). The 'Others' category includes exposures where
origination data is incomplete and the exposures are allocated into stage 2.
Credit Impairment charges
The Group's ongoing credit impairment was a net charge of $336 million (30
June 2024: $240 million).
WRB contributed a net charge of $332 million (30 June 2024: $267 million),
driven by a high interest rate environment impacting repayments on unsecured
portfolio as well as growth in Indonesia partnerships. CIB contributed to a
net release of $14 million (30 June 2024: $54 million release) due to $48
million stage 3 releases from the sovereign upgrade of Sri Lanka foreign
currency exposures. The non-linearity impact increased impairment charges by
$34 million in H1 2025 and $15 million from June 2024, to $77 million (31
December 2024: $43 million; 30 June 2024: $62 million). This reflects an
increased probability weighting of the overall downside scenarios from 32 per
cent to 45 per cent, given heightened levels of tariffs and geopolitical
uncertainty.
- page 04 -
Commercial Real Estate (CRE)
The Group provides loans to CRE counterparties of which $9.5 billion is to
counterparties in the CIB segment where the source of repayment is
substantially derived from rental or sale of real estate and is secured by
real estate collateral. The remaining CRE loans comprise working capital loans
to real estate corporates, loans with non-property collateral, unsecured loans
and loans to real estate entities of diversified conglomerates. The average
LTV ratio of the performing book CRE portfolio has increased to 55 per cent
(31 December 2024: 54 per cent). The proportion of loans with an LTV greater
than 80 per cent has increased to 5 per cent (31 December 2024: 4 per cent).
China CRE
Total exposure to China CRE was stable at $1.9 billion (31 December 2024: $2.0
billion). The proportion of credit impaired exposures increased to 73 per cent
(31 December 2024: 70 per cent) due to a stage 3 downgrade during the period.
Stage 3 provision coverage increased to 89 per cent (31 December 2024: 87 per
cent), reflecting increased provision charges during the period. The
proportion of the loan book rated as Higher risk decreased to 1.8 per cent (31
December 2024: 2.8 per cent) mainly due to downgrades to stage 3 during the
period.
The Group continues to hold a judgemental management overlay, which decreased
by $12.0 million to $58.0 million (31 December 2024: $70.0 million),
reflecting changes in exposure during the period.
The Group is further indirectly exposed to China CRE through its associate
investment in China Bohai Bank.
High carbon sectors
Total net on-balance sheet exposure to high carbon sectors increased by $1.9
billion to $27.2 billion (31 December 2024: $25.4 billion). This was driven
by exposure increases to portfolios in Oil and Gas at $7.7 billion (31
December 2024: $6.4 billion), CRE at $4.3 billion (31 December 2024: $4.2
billion) and Power at $5.6 billion (31 December 2024: $4.8 billion). The Group
monitors the lending to these portfolios against each sector's carbon budget
and interim 2030 net zero targets.
- page 05 -
Maximum exposure to Credit Risk (reviewed)
The table below presents the Group's maximum exposure to Credit Risk for its
on-balance sheet and off-balance sheet financial instruments as at 30 June
2025, before and after taking into account any collateral held or other Credit
Risk mitigation.
30.06.25 31.12.24
Maximum exposure Credit risk management Net Exposure Maximum exposure Credit risk management Net exposure
$million
$million
$million
$million
Collateral8 Master netting agreements Collateral8 Master netting agreements
$million
$million
$million
$million
On-balance sheet
Cash and balances at central banks 80,165 - - 80,165 63,447 - - 63,447
Loans and advances to banks1 42,386 4,250 - 38,136 43,593 2,946 - 40,647
of which - reverse repurchase agreements and other similar secured lending7 4,250 4,250 - - 2,946 2,946 - -
Loans and advances to customers1 286,731 125,538 - 161,193 281,032 119,047 - 161,985
of which - reverse repurchase agreements and other similar secured lending7 4,189 4,189 - - 9,660 9,660 - -
Investment securities - Debt securities and other eligible bills2 157,617 - - 157,617 143,562 - - 143,562
Fair value through profit or loss3, 7 194,073 90,333 - 103,740 172,031 86,195 - 85,836
Loans and advances to banks 2,393 - - 2,393 2,213 - - 2,213
Loans and advances to customers 8,119 - - 8,119 7,084 - - 7,084
Reverse repurchase agreements and 90,333 90,333 - - 86,195 86,195 - -
other similar lending7
Investment securities - Debt securities 93,228 - - 93,228 76,539 - - 76,539
and other eligible bills2
Derivative financial instruments4, 7 64,225 12,831 48,308 3,086 81,472 15,005 60,280 6,187
Accrued income 2,612 - - 2,612 2,776 - - 2,776
Assets held for sale9 622 - - 622 889 - - 889
Other assets5 45,372 - - 45,372 34,585 - - 34,585
Total balance sheet 873,803 232,952 48,308 592,543 823,387 223,193 60,280 539,914
Off-balance sheet6
Undrawn Commitments 192,947 3,503 - 189,444 182,529 2,489 - 180,040
Financial Guarantees and other equivalents 103,959 2,046 - 101,913 90,632 1,807 - 88,825
Total off-balance sheet 296,906 5,549 - 291,357 273,161 4,296 - 268,865
Total 1,170,709 238,501 48,308 883,900 1,096,548 227,489 60,280 808,779
1 Amounts are net of ECL provisions. An analysis of credit quality is set
out in the credit quality analysis section. Further details of collateral held
by client segment and stage are set out in the collateral analysis section.
The Group also has credit mitigation through Credit Linked Notes as set out
below.
2 Excludes equity and other investments of $971 million (31 December 2024:
$994 million). Further details are set out in Note 13 financial instruments
3 Excludes equity and other investments of $7,450 million (31 December
2024: $5,486 million). Further details are set out in Note 13 financial
instruments
4 The Group enters into master netting agreements, which in the event of
default result in a single amount owed by or to the counterparty through
netting the sum of the positive and negative mark-to-market values of
applicable derivative transactions
5 Other assets include Hong Kong certificates of indebtedness, cash
collateral, and acceptances, in addition to unsettled trades and other
financial assets
6 Excludes ECL provisions of $236 million (31 December 2024: $255 million)
which are reported under Provisions for liabilities and charges
7 Collateral capped at maximum exposure (over-collateralised)
8 Adjusted for over-collateralisation, which has been determined with
reference to the drawn and undrawn component as this best reflects the effect
on the amount arising from expected credit losses
9 The amount is after ECL provisions. Further details are set out in Note
20 Assets held for sale and associated liabilities
- page 06 -
Analysis of financial instruments by stage (reviewed)
The table below presents the gross and credit impairment balances by stage for
the Group's amortised cost and FVOCI financial instruments as at 30 June 2025.
30.06.25
Stage 1 Stage 2 Stage 3 Tot
al
Gross balance1 Total credit impairment Net carrying value Gross balance1 Total credit impairment Net carrying value Gross balance1 Total credit impairment Net carrying value Gross balance1 Total credit impairment Net carrying value
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Cash and balances at central banks 79,158 - 79,158 417 (3) 414 603 (10) 593 80,178 (13) 80,165
Loans and advances 41,613 (6) 41,607 737 (2) 735 48 (4) 44 42,398 (12) 42,386
to banks (amortised cost)
Loans and advances to customers (amortised cost) 273,155 (553) 272,602 12,520 (465) 12,055 6,136 (4,062) 2,074 291,811 (5,080) 286,731
Debt securities and other eligible bills5 156,264 (29) 1,059 (7) 306 (6) 157,629 (42)
Amortised cost 55,128 (11) 55,117 41 (1) 40 53 - 53 55,222 (12) 55,210
FVOCI2 101,136 (18) 1,018 (6) 253 (6) 102,407 (30) -
Accrued income (amortised cost)4 2,612 2,612 - - 2,612 - 2,612
Assets held for sale4 556 - 556 62 - 62 45 (41) 4 663 (41) 622
Other assets 45,372 - 45,372 - - - 7 (7) - 45,379 (7) 45,372
Undrawn commitments3 188,364 (60) 4,546 (37) 37 (1) 192,947 (98)
Financial guarantees, 101,740 (16) 1,794 (16) 425 (106) 103,959 (138)
trade credits
and irrevocable letter of credits3
Total 888,834 (664) 21,135 (530) 7,607 (4,237) 917,576 (5,431)
1 Gross carrying amount for off-balance sheet refers to notional values
2 These instruments are held at fair value on the balance sheet. The ECL
provision in respect of debt securities measured at FVOCI is held within the
OCI reserve
3 These are off-balance sheet instruments. Only the ECL is recorded
on-balance sheet as a financial liability and therefore there is no 'net
carrying amount'. ECL allowances on off-balance sheet instruments are held as
liability provisions to the extent that the drawn and undrawn components of
loan exposures can be separately identified. Otherwise they will be reported
against the drawn component
4 Stage 1 ECL is not material
5 Stage 3 gross includes $289 million originated credit-impaired debt
securities with impairment of $6 million
- page 07 -
31.12.24
Stage 1 Stage 2 Stage 3 Tot
al
Gross balance1 Total credit impairment Net carrying value Gross balance1 Total credit impairment Net carrying value Gross balance1 Total credit impairment Net carrying value Gross balance1 Total credit impairment Net carrying value
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Cash and balances at central banks 62,597 - 62,597 432 (4) 428 426 (4) 422 63,455 (8) 63,447
Loans and advances 43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593
to banks (amortised cost)
Loans and advances to customers (amortised cost) 269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032
Debt securities and other eligible bills5 141,862 (23) 1,614 (4) 103 (2) 143,579 (29)
Amortised cost 54,637 (15) 54,622 475 (2) 473 42 - 42 55,154 (17) 55,137
FVOCI2 87,225 (8) 1,139 (2) 61 (2) 88,425 (12)
Accrued income (amortised cost)4 2,776 2,776 - - 2,776 - 2,776
Assets held for sale4 840 (7) 833 38 - 38 58 (45) 13 936 (52) 884
Other assets 34,585 - 34,585 - - - 3 (3) - 34,588 (3) 34,585
Undrawn commitments3 178,516 (50) 4,006 (52) 7 (1) 182,529 (103)
Financial guarantees, 87,991 (16) 2,038 (7) 603 (129) 90,632 (152)
trade credits
and irrevocable letter of credits3
Total 821,477 (589) 19,077 (541) 7,486 (4,137) 848,040 (5,267)
1 Gross carrying amount for off-balance sheet refers to notional values
2 These instruments are held at fair value on the balance sheet. The ECL
provision in respect of debt securities measured at FVOCI is held within the
OCI reserve
3 These are off-balance sheet instruments. Only the ECL is recorded
on-balance sheet as a financial liability and therefore there is no 'net
carrying amount'. ECL allowances on off-balance sheet instruments are held as
liability provisions to the extent that the drawn and undrawn components of
loan exposures can be separately identified. Otherwise they will be reported
against the drawn component
4 Stage 1 ECL is not material
5 Stage 3 gross includes $59 million originated credit-impaired debt
securities with impairment of $Nil million
Credit quality analysis (reviewed)
Credit quality by client segment
For CIB, exposures are analysed by credit grade (CG), which plays a central
role in the quality assessment and monitoring of risk. All loans are assigned
a CG, which is reviewed periodically and amended in light of changes in the
borrower's circumstances or behaviour. CGs 1 to 12 are assigned to stage 1 and
stage 2 (performing) clients or accounts, while CGs 13 and 14 are assigned to
stage 3 (credit-impaired) clients. Consumer and Business Banking portfolios
are analysed by days past due and Private Banking by the type of collateral
held.
Mapping of credit quality
The Group uses the following internal risk mapping to determine the credit
quality for loans.
Credit quality description Corporate & Investment Banking Private Banking1 Wealth & Retail Banking4
Internal grade mapping S&P external ratings equivalent Regulatory PD range (%) Internal ratings Internal grade mapping
Strong 1A to 5B AAA/AA+ to BBB-/ BB+2 0 to 0.425 Class I and Class IV Current loans (no past dues nor impaired)
Satisfactory 6A to 11C BB to CCC+3 0.426 to 15.75 Class II and Class III Loans past due till 29 days
Higher risk Grade 12 CCC+ to C 15.751 to 99.999 Stressed Assets Group (SAG) Managed Past due loans 30 days and over till 90 days
1 For Private Banking, classes of risk represent the type of collateral
held. Class I represents facilities with liquid collateral, such as cash and
marketable securities. Class II represents unsecured/partially secured
facilities and those with illiquid collateral, such as equity in private
enterprises. Class III represents facilities with residential or commercial
real estate collateral. Class IV covers margin trading facilities
2 Banks' rating: AAA/AA+ to BB+/BB. Sovereigns' rating: AAA to BB+
3 Banks' rating: BB to 'CCC+ to C'. Sovereigns' rating: BB+/BB to B-/CCC+
4 Wealth & Retail Banking excludes Private Banking. Medium enterprise
clients within Business Banking are managed using the same internal credit
grades as CIB
- page 08 -
The table below sets out the gross loans and advances held at amortised cost,
ECL provisions and expected credit loss coverage by business segment and
stage. ECL coverage represents the ECL reported for each segment and stage as
a proportion of the gross loan balance for each segment and stage.
Loans and advances by client segment (reviewed)
Amortised cost 30.06.25
Banks Customers Undrawn commitments Financial Guarantees
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Customer Total
$million
$million
$million
other items
$million
$million
Stage 1 41,613 129,064 124,273 1,549 18,269 273,155 188,364 101,740
- Strong 28,979 91,162 118,929 1,528 17,799 229,418 171,907 66,028
- Satisfactory 12,634 37,902 5,344 21 470 43,737 16,457 35,712
Stage 2 737 10,374 2,078 47 21 12,520 4,546 1,794
- Strong 41 1,888 1,563 30 - 3,481 1,144 471
- Satisfactory 263 6,845 146 6 - 6,997 3,133 990
- Higher risk 433 1,641 369 11 21 2,042 269 333
Of which (stage 2):
- Less than 30 days past due - 118 146 6 - 270 - -
- More than 30 days past due 2 57 369 11 - 437 - -
Stage 3, credit-impaired financial assets 48 4,421 1,701 14 - 6,136 37 425
Gross balance¹ 42,398 143,859 128,052 1,610 18,290 291,811 192,947 103,959
Stage 1 (6) (124) (403) (26) - (553) (60) (16)
- Strong (3) (49) (328) (24) - (401) (34) (7)
- Satisfactory (3) (75) (75) (2) - (152) (26) (9)
Stage 2 (2) (306) (141) (18) - (465) (37) (16)
- Strong - (6) (65) (11) - (82) (4) -
- Satisfactory - (209) (38) (2) - (249) (24) (5)
- Higher risk (2) (91) (38) (5) - (134) (9) (11)
Of which (stage 2):
- Less than 30 days past due - (11) (38) (2) - (51) - -
- More than 30 days past due - - (38) (5) - (43) - -
Stage 3, credit-impaired financial assets (4) (3,251) (800) (11) - (4,062) (1) (106)
Total credit impairment (12) (3,681) (1,344) (55) - (5,080) (98) (138)
Net carrying value 42,386 140,178 126,708 1,555 18,290 286,731
Stage 1 0.0% 0.1% 0.3% 1.7% 0.0% 0.2% 0.0% 0.0%
- Strong 0.0% 0.1% 0.3% 1.6% 0.0% 0.2% 0.0% 0.0%
- Satisfactory 0.0% 0.2% 1.4% 9.5% 0.0% 0.3% 0.2% 0.0%
Stage 2 0.3% 2.9% 6.8% 38.3% 0.0% 3.7% 0.8% 0.9%
- Strong 0.0% 0.3% 4.2% 36.7% 0.0% 2.4% 0.3% 0.0%
- Satisfactory 0.0% 3.1% 26.0% 33.3% 0.0% 3.6% 0.8% 0.5%
- Higher risk 0.5% 5.5% 10.3% 45.5% 0.0% 6.6% 3.3% 3.3%
Of which (stage 2):
- Less than 30 days past due 0.0% 9.3% 26.0% 33.3% 0.0% 18.9% 0.0% 0.0%
- More than 30 days past due 0.0% 0.0% 10.3% 45.5% 0.0% 9.8% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 8.3% 73.5% 47.0% 78.6% 0.0% 66.2% 2.7% 24.9%
- Stage 3 Collateral - 294 656 - - 950 - 37
- Stage 3 Cover ratio (after collateral) 8.3% 80.2% 85.6% 78.6% 0.0% 81.7% 2.7% 33.6%
Cover ratio 0.0% 2.6% 1.0% 3.4% 0.0% 1.7% 0.1% 0.1%
Fair value through profit or loss
Performing 36,958 63,870 5 - - 63,875
- Strong 32,385 44,257 4 - - 44,261
- Satisfactory 4,468 19,524 1 - - 19,525
- Higher risk 105 89 - - - 89
Defaulted (CG13-14) - 12 - - - 12
Gross balance (FVTPL)2 36,958 63,882 5 - - 63,887
Net carrying value (incl FVTPL) 79,344 204,060 126,713 1,555 18,290 350,618
1 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $4,189 million under Customers and of $4,250
million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $55,768 million under Customers and of $34,565
million under Banks, held at fair value through profit or loss
- page 09 -
Amortised cost 31.12.24
Banks Customers Undrawn commitments Financial Guarantees
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Customer Total
$million
$million
$million
other items
$million
$million
Stage 1 43,208 128,746 117,015 1,383 21,958 269,102 178,516 87,991
- Strong 31,239 90,725 111,706 1,367 21,540 225,338 162,574 56,070
- Satisfactory 11,969 38,021 5,309 16 418 43,764 15,942 31,921
Stage 2 318 8,643 1,905 48 35 10,631 4,006 2,038
- Strong 8 1,229 1,413 31 - 2,673 994 471
- Satisfactory 125 6,665 155 6 - 6,826 2,862 1,403
- Higher risk 185 749 337 11 35 1,132 150 164
Of which (stage 2):
- Less than 30 days past due - 55 155 6 - 216 - -
- More than 30 days past due 2 7 337 11 - 355 - -
Stage 3, credit-impaired financial assets 83 4,476 1,617 12 98 6,203 7 603
Gross balance¹ 43,609 141,865 120,537 1,443 22,091 285,936 182,529 90,632
Stage 1 (10) (80) (383) (20) - (483) (50) (16)
- Strong (7) (28) (325) (18) - (371) (33) (7)
- Satisfactory (3) (52) (58) (2) - (112) (17) (9)
Stage 2 (1) (303) (147) (23) - (473) (52) (7)
- Strong - (41) (70) (14) - (125) (10) -
- Satisfactory (1) (218) (32) (3) - (253) (32) (4)
- Higher risk - (44) (45) (6) - (95) (10) (3)
Of which (stage 2):
- Less than 30 days past due - (1) (32) (3) - (36) - -
- More than 30 days past due - - (45) (6) - (51) - -
Stage 3, credit-impaired financial assets (5) (3,178) (759) (11) - (3,948) (1) (129)
Total credit impairment (16) (3,561) (1,289) (54) - (4,904) (103) (152)
Net carrying value 43,593 138,304 119,248 1,389 22,091 281,032 - -
Stage 1 0.0% 0.1% 0.3% 1.4% 0.0% 0.2% 0.0% 0.0%
- Strong 0.0% 0.0% 0.3% 1.3% 0.0% 0.2% 0.0% 0.0%
- Satisfactory 0.0% 0.1% 1.1% 12.5% 0.0% 0.3% 0.1% 0.0%
Stage 2 0.3% 3.6% 7.7% 47.9% 0.0% 4.4% 1.3% 0.3%
- Strong 0.0% 3.3% 5.0% 45.2% 0.0% 4.7% 1.0% 0.0%
- Satisfactory 0.8% 3.3% 20.6% 50.0% 0.0% 3.7% 1.1% 0.3%
- Higher risk 0.0% 5.9% 13.4% 54.5% 0.0% 8.4% 6.7% 1.8%
Of which (stage 2):
- Less than 30 days past due 0.0% 1.8% 20.6% 50.0% 0.0% 16.7% 0.0% 0.0%
- More than 30 days past due 0.0% 0.0% 13.4% 54.5% 0.0% 14.4% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 6.0% 71.0% 46.9% 91.7% 0.0% 63.6% 14.3% 21.4%
- Stage 3 Collateral 1 297 584 - - 881 - 46
- Stage 3 Cover ratio (after collateral) 7.2% 77.6% 83.1% 91.7% 0.0% 77.8% 14.3% 29.0%
Cover ratio 0.0% 2.5% 1.1% 3.7% 0.0% 1.7% 0.1% 0.2%
Fair value through profit or loss
Performing 36,967 58,506 6 - - 58,512
- Strong 30,799 38,084 3 - - 38,087
- Satisfactory 6,158 20,314 3 - - 20,317
- Higher risk 10 108 - - - 108
Defaulted (CG13-14) - 13 - - - 13
Gross balance (FVTPL)2 36,967 58,519 6 - - 58,525
Net carrying value (incl FVTPL) 80,560 196,823 119,254 1,389 22,091 339,557
1 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $9,660 million under Customers and of $2,946
million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $51,441 million under Customers and of $34,754
million under Banks, held at fair value through profit or loss
- page 10 -
Loans and advances by client segment credit quality analysis
Credit grade Regulatory 1-year S&P external ratings equivalent 30.06.25
PD range (%)
Corporat
e &
Investme
nt
Banking
and
Central
&
other
items
Gross Cred
it
impa
irme
nt
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
$million
$million
$million
$million
$million
$million
$million
$million
Strong 108,961 1,888 - 110,849 (49) (6) - (55)
1A-2B 0-0.045 A+ and above 30,153 36 - 30,189 (1) - - (1)
3A-4A 0.046-0.110 A/A- to BBB+/BBB 34,562 544 - 35,106 (7) - - (7)
4B-5B 0.111-0.425 BBB to BBB-/BB+ 44,246 1,308 - 45,554 (41) (6) - (47)
Satisfactory 38,372 6,845 - 45,217 (75) (209) - (284)
6A-7B 0.426-1.350 BB+/BB to BB- 25,061 1,643 - 26,704 (28) (13) - (41)
8A-9B 1.351-4.000 BB-/B+ to B 8,524 3,005 - 11,529 (26) (166) - (192)
10A-11C 4.001-15.75 B/B- to B-/CCC+ 4,787 2,197 - 6,984 (21) (30) - (51)
Higher risk - 1,662 - 1,662 - (91) - (91)
12 15.751-99.999 CCC/C - 1,662 - 1,662 - (91) - (91)
Credit-impaired - - 4,421 4,421 - - (3,251) (3,251)
13-14 100 Defaulted - - 4,421 4,421 - - (3,251) (3,251)
Total 147,333 10,395 4,421 162,149 (124) (306) (3,251) (3,681)
31.12.24
Strong 112,265 1,229 - 113,494 (28) (41) - (69)
1A-2B 0-0.045 A+ and above 32,160 31 - 32,191 (2) - - (2)
3A-4A 0.046-0.110 A/A- to BBB+/BBB 40,712 524 - 41,236 (8) (33) - (41)
4B-5B 0.111-0.425 BBB to BBB-/BB+ 39,393 674 - 40,067 (18) (8) - (26)
Satisfactory 38,439 6,665 - 45,104 (52) (218) - (270)
6A-7B 0.426-1.350 BB+/BB to BB- 24,928 2,677 - 27,605 (21) (24) - (45)
8A-9B 1.351-4.000 BB-/B+ to B 9,514 2,618 - 12,132 (20) (169) - (189)
10A-11C 4.001-5.75 B/B- to B-/CCC+ 3,997 1,370 - 5,367 (11) (25) - (36)
Higher risk - 784 - 784 - (44) - (44)
12 15.751-99.999 CCC/C - 784 - 784 - (44) - (44)
Credit-impaired - - 4,574 4,574 - - (3,178) (3,178)
13-14 100 Defaulted - - 4,574 4,574 - - (3,178) (3,178)
Total 150,704 8,678 4,574 163,956 (80) (303) (3,178) (3,561)
- page 11 -
Undrawn commitment and financial guarantees - by client segment credit quality
Credit grade Regulatory 1-year S&P external ratings equivalent 30.06.25
PD range (%)
Corporat
e &
Investme
nt
Banking
and
Central
&
other
items
Notional Cred
it
impa
irme
nt
Stage 1 $million Stage 2 $million Stage 3 $million Total $million Stage 1 $million Stage 2 $million Stage 3 $million Total $million
Strong 160,041 1,392 - 161,433 (25) (1) - (26)
1A-2B 0-0.045 A+ and above 34,283 252 - 34,535 (1) - - (1)
3A-4A 0.046-0.110 A/A- to BBB+/BBB 58,220 594 - 58,814 (4) - - (4)
4B-5B 0.111-0.425 BBB to BBB-/BB+ 67,538 546 - 68,084 (20) (1) - (21)
Satisfactory 50,662 4,059 - 54,721 (31) (27) - (58)
6A-7B 0.426-1.350 BB+/BB to BB- 39,644 1,435 - 41,079 (18) (6) - (24)
8A-9B 1.351-4.000 BB-/B+ to B 8,070 2,030 - 10,100 (9) (14) - (23)
10A-11C 4.001-15.75 B/B- to B-/CCC+ 2,948 594 - 3,542 (4) (7) - (11)
Higher risk - 572 - 572 - (18) - (18)
12 15.751-99.999 CCC+/C - 572 - 572 - (18) - (18)
Credit-impaired - - 450 450 - - (107) (107)
13-14 100 Defaulted - - 450 450 - - (107) (107)
Total 210,703 6,023 450 217,176 (56) (46) (107) (209)
31.12.24
Strong 140,733 1,265 - 141,998 (22) (6) - (28)
1A-2B 0-0.045 A+ and above 29,623 280 - 29,903 (1) - - (1)
3A-4A 0.046-0.110 A/A- to BBB+/BBB 53,568 492 - 54,060 (4) - - (4)
4B-5B 0.111-0.425 BBB to BBB-/BB+ 57,542 493 - 58,035 (17) (6) - (23)
Satisfactory 46,394 4,200 - 50,594 (23) (33) - (56)
6A-7B 0.426-1.350 BB+/BB to BB- 2,544 1,065 - 3,609 (4) (6) - (10)
8A-9B 1.351-4.000 BB-/B+ to B 30,438 1,162 - 31,600 (11) (16) - (27)
10A-11C 4.001-15.75 B/B- to B-/CCC+ 13,412 1,973 - 15,385 (8) (11) - (19)
Higher risk - 286 - 286 - (11) - (11)
12 15.751-99.999 CCC+/C - 286 - 286 - (11) - (11)
Credit-impaired - - 593 593 - - (129) (129)
13-14 100 Defaulted - - 593 593 - - (129) (129)
Total 187,127 5,751 593 193,471 (45) (50) (129) (224)
- page 12 -
Loans and advances analysis by client segment, credit quality and key
geography
Corporate & Investment Banking and Central & other items
30.06.25
Gross Credit
impairment
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 St T
ag o
e t
3 a
l
C
o
v
e
r
a
g
e
%
Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million Im-paired $million Total $million
Hong Kong 28,893 12,244 41,137 226 1,847 367 2,440 1,432 1,432 (18) (18) (36) - (103) (63) (166) (1,240) (1,240) (3.2)%
Corporate Lending 14,112 5,695 19,807 213 1,219 367 1,799 1,419 1,419 (15) (6) (21) - (100) (63) (163) (1,239) (1,239) (6.2)%
Non Corporate Lending1 5,741 2,541 8,282 12 620 - 632 13 13 (1) (11) (12) - (3) - (3) (1) (1) (0.2)%
Banks 9,040 4,008 13,048 1 8 - 9 - - (2) (1) (3) - - - - - - (0.0)%
Singapore 30,742 8,835 39,577 1,023 1,065 225 2,313 241 241 (5) (11) (16) (2) (4) - (6) (192) (192) (0.5)%
Corporate Lending 8,803 4,083 12,886 975 603 21 1,599 196 196 (4) (9) (13) (2) (4) - (6) (192) (192) (1.4)%
Non Corporate Lending1 17,532 973 18,505 32 420 180 632 - - (1) (1) (2) - - - - - - (0.0)%
Banks 4,407 3,779 8,186 16 42 24 82 45 45 - (1) (1) - - - - - - (0.0)%
China 10,610 2,164 12,774 - 273 37 310 161 161 (3) (1) (4) - - (1) (1) (86) (86) (0.7)%
Corporate Lending 5,403 1,472 6,875 - 270 37 307 159 159 (2) (1) (3) - - (1) (1) (84) (84) (1.2)%
Non Corporate Lending1 3,402 404 3,806 - - - - - - (1) - (1) - - - - - - (0.0)%
Banks 1,805 288 2,093 - 3 - 3 2 2 - - - - - - - (2) (2) (0.1)%
UK 14,382 6,804 21,186 57 1,792 574 2,423 868 868 (2) (2) (4) (1) (24) - (25) (389) (389) (1.7)%
Corporate Lending 6,096 3,379 9,475 57 1,165 497 1,719 779 779 (2) (2) (4) (1) (23) - (24) (363) (363) (3.3)%
Non Corporate Lending1 6,224 1,363 7,587 - 611 74 685 88 88 - - - - (1) - (1) (25) (25) (0.3)%
Banks 2,062 2,062 4,124 - 16 3 19 1 1 - - - - - - - (1) (1) (0.0)%
US 18,653 3,705 22,358 215 329 - 544 3 3 (5) (3) (8) (1) (3) - (4) (4) (4) (0.1)%
Corporate Lending 6,819 2,262 9,081 148 230 - 378 - - (4) (2) (6) (1) (3) - (4) (1) (1) (0.1)%
Non Corporate Lending1 11,190 262 11,452 67 69 - 136 3 3 (1) (1) (2) - - - - (3) (3) (0.0)%
Banks 644 1,181 1,825 - 30 - 30 - - - - - - - - - - - 0.0%
Others 34,660 17,254 51,914 408 1,802 892 3,102 1,764 1,764 (19) (43) (62) (2) (75) (29) (106) (1,344) (1,344) (2.7)%
Corporate Lending 19,043 13,399 32,442 372 1,245 456 2,073 1,592 1,592 (18) (33) (51) (2) (63) (27) (92) (1,186) (1,186) (3.7)%
Non Corporate Lending1 4,596 2,539 7,135 26 379 30 435 172 172 - (9) (9) - (12) - (12) (157) (157) (2.3)%
Banks 11,021 1,316 12,337 10 178 406 594 - - (1) (1) (2) - - (2) (2) (1) (1) (0.0)%
Total 137,940 51,006 188,946 1,929 7,108 2,095 11,132 4,469 4,469 (52) (78) (130) (6) (209) (93) (308) (3,255) (3,255) (1.8)%
1 Include financing, insurance and non-banking corporations and
governments
- page 13 -
Corporate & Investment Banking and Central & other items2
31.12.24
Gross Credit
impairment
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 St T
ag o
e t
3 a
l
c
o
v
e
r
a
g
e
%
Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million Im-paired $million Total $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 Lending1 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 Lending1 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 Lending1 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 Lending1 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 Lending1 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 Lending1 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 Include financing, insurance and non-banking corporations and
governments
2 Amounts have been re-presented from management view to financial booking
basis in line with RNS on Re-Presentation of Financial Information issued on 2
April 2025
- page 14 -
Wealth & Retail Banking and Ventures
30.06.25
Gross Credit
impairment
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 St T
ag o
e t
3 a
l
c
o
v
e
r
a
g
e
%
Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million Im-paired $million Total $million
Hong Kong 42,020 269 42,289 324 49 54 427 231 231 (62) (21) (83) (25) (14) (10) (49) (78) (78) (0.5)%
Mortgages 30,622 213 30,835 99 30 22 151 71 71 - - - - - - - (3) (3) (0.0)%
Credit cards 3,999 24 4,023 93 17 19 129 14 14 (32) (17) (49) (19) (13) (7) (39) (14) (14) (2.4)%
Others 7,399 32 7,431 132 2 13 147 146 146 (30) (4) (34) (6) (1) (3) (10) (61) (61) (1.4)%
Singapore 29,807 76 29,883 436 40 43 519 334 334 (38) (36) (74) (1) (7) (8) (16) (269) (269) (1.2)%
Mortgages 14,571 18 14,589 193 34 14 241 11 11 - - - - - - - (5) (5) (0.0)%
Credit cards 2,427 37 2,464 17 5 22 44 19 19 (18) (35) (53) - (7) (6) (13) (19) (19) (3.4)%
Others 12,809 21 12,830 226 1 7 234 304 304 (20) (1) (21) (1) - (2) (3) (245) (245) (2.0)%
Korea 21,492 269 21,761 327 10 43 380 134 134 (25) (3) (28) (21) (13) (1) (35) (50) (50) (0.5)%
Mortgages 16,435 200 16,635 265 9 15 289 77 77 (1) - (1) - - - - (4) (4) (0.0)%
Credit cards 24 1 25 1 - - 1 - - - - - - - - - - - 0.0%
Others 5,033 68 5,101 61 1 28 90 57 57 (24) (3) (27) (21) (13) (1) (35) (46) (46) (2.1)%
Rest of World 27,138 4,751 31,889 506 53 240 799 1,016 1,016 (227) (17) (244) (29) (6) (24) (59) (414) (414) (2.1)%
Mortgages 16,006 2,143 18,149 300 36 143 479 489 489 (4) (3) (7) - - (1) (1) (127) (127) (0.7)%
Credit cards 1,311 41 1,352 39 1 14 54 35 35 (26) (4) (30) (15) - (10) (25) (25) (25) (5.6)%
Others 9,821 2,567 12,388 167 16 83 266 492 492 (197) (10) (207) (14) (6) (13) (33) (262) (262) (3.8)%
Total 120,457 5,365 125,822 1,593 152 380 2,125 1,715 1,715 (352) (77) (429) (76) (40) (43) (159) (811) (811) (1.1)%
Wealth & Retail Banking and Ventures
31.12.24
Gross Credit
impairment
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 St T
ag o
e t
3 a
l
C
o
v
e
r
a
g
e
%
Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million Im-paired $million Total $million
Hong Kong 41,906 320 42,226 288 47 40 375 228 228 (59) (14) (73) (33) (20) (4) (57) (69) (69) (0.5)%
Mortgages 31,080 265 31,345 55 14 24 93 75 75 - - - - - - - (7) (7) (0.0)%
Credit cards 4,210 19 4,229 93 30 1 124 14 14 (36) (11) (47) (27) (19) (1) (47) (14) (14) (2.5)%
Others 6,616 36 6,652 140 3 15 158 139 139 (23) (3) (26) (6) (1) (3) (10) (48) (48) (1.2)%
Singapore 26,755 52 26,807 441 39 34 514 312 312 (29) (26) (55) (6) (6) (6) (18) (265) (265) (1.2)%
Mortgages 13,531 12 13,543 160 32 15 207 9 9 - - - - - - - (4) (4) (0.0)%
Credit cards 2,248 25 2,273 14 5 16 35 16 16 (9) (26) (35) (5) (5) (4) (14) (19) (19) (2.9)%
Others 10,976 15 10,991 267 2 3 272 287 287 (20) - (20) (1) (1) (2) (4) (242) (242) (2.3)%
Korea 18,062 220 18,282 378 9 22 409 112 112 (22) (1) (23) (28) (4) (1) (33) (33) (33) (0.5)%
Mortgages 13,198 171 13,369 250 8 17 275 62 62 - - - - - - - (2) (2) (0.0)%
Credit cards 36 1 37 1 - - 1 - - (1) - (1) - - - - - - (2.6)%
Others 4,828 48 4,876 127 1 5 133 50 50 (21) (1) (22) (28) (4) (1) (33) (31) (31) (1.7)%
Rest of World 26,085 4,998 31,083 338 76 241 655 977 977 (239) (13) (252) (39) (5) (18) (62) (403) (403) (2.2)%
Mortgages 15,079 2,007 17,086 136 43 141 320 459 459 (4) (2) (6) - - (1) (1) (124) (124) (0.7)%
Credit cards 1,148 351 1,499 29 12 19 60 40 40 (33) (1) (34) (21) - (1) (22) (27) (27) (5.2)%
Others 9,858 2,640 12,498 173 21 81 275 478 478 (202) (10) (212) (18) (5) (16) (39) (252) (252) (3.8)%
Total 112,808 5,590 118,398 1,445 171 337 1,953 1,629 1,629 (349) (54) (403) (106) (35) (29) (170) (770) (770) (1.1)%
- page 15 -
Undrawn commitment and financial guarantees - by client segment credit quality
Amortised cost Wealth & Retail Banking and Ventures
30.06.25
Notional ECL
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
$million
$million
$million
$million
$million
$million
$million
$million
Strong 70,794 113 - 70,907 (15) (3) - (18)
Satisfactory 625 12 - 637 (3) (2) - (5)
Higher risk - 30 - 30 - (2) - (2)
Impaired - - 3 3 - - - -
Total 71,419 155 3 71,577 (18) (7) - (25)
Amortised cost 31.12.24
Notional ECL
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
$million
$million
$million
$million
$million
$million
$million
$million
Strong 70,595 100 - 70,695 (15) (3) - (18)
Satisfactory 850 11 - 861 (5) (1) - (6)
Higher risk - 21 - 21 - (3) - (3)
Impaired - - 8 8 - - - -
Total 71,445 132 8 71,585 (20) (7) - (27)
Movement in gross exposures and credit impairment for loans and advances, debt
securities, undrawn commitments and financial guarantees (reviewed)
The tables overleaf set out the movement in gross exposures and credit
impairment by stage in respect of amortised cost loans to banks and customers,
undrawn commitments, financial guarantees and debt securities classified at
amortised cost and FVOCI. The tables are presented for the Group and
separately for CIB and WRB (which also includes a separate presentation for
secured and unsecured exposures).
Methodology
The movement lines within the tables are an aggregation of monthly movements
over the year and will therefore reflect the accumulation of multiple trades
during the year. The credit impairment charge in the income statement
comprises the amounts within the boxes in the table below, less recoveries of
amounts previously written off. Discount unwind is reported in net interest
income and related to stage 3 financial instruments only.
The approach for determining the key line items in the tables is set out
below.
• Transfers - transfers between stages are deemed to occur at the beginning
of a month based on prior month closing balances.
• Net remeasurement from stage changes - the remeasurement of credit
impairment provisions arising from a change in stage is reported within the
stage that the assets are transferred to. For example, assets transferred into
stage 2 are remeasured from a 12-month to a lifetime ECL, with the effect of
remeasurement reported in stage 2. For stage 3, this represents the initial
remeasurement from specific provisions recognised on individual assets
transferred into stage 3 in the year.
• Net changes in exposures - new business written less repayments in the
year. Within stage 1, new business written will attract up to 12 months of ECL
charges. Repayments of non-amortising loans (primarily within CIB) will have
low amounts of ECL provisions attributed to them, due to the release of
provisions over the term to maturity. In stages 2 and 3, the net change in
exposures reflect repayments although stage 2 may include new facilities where
clients are on non-purely precautionary early alert, are CG 12, or when
non-investment grade debt securities are acquired.
- page 16 -
• Changes in risk parameters - for stages 1 and 2, this reflects changes in
the probability of default (PD), loss given default (LGD) and exposure at
default (EAD) of assets during the year, which includes the impact of
releasing provisions over the term to maturity. It also includes the effect of
changes in forecasts of macroeconomic variables during the year. In stage 3,
this line represents additional specific provisions recognised on exposures
held within stage 3.
• Interest due but not paid - change in contractual amount of interest due
in stage 3 financial instruments but not paid, being the net of accruals,
repayments and write-offs, together with the corresponding change in credit
impairment.
Changes to ECL models, which incorporate changes to model approaches and
methodologies, are not reported as a separate line item as these have an
impact over a number of lines and stages.
Movements during the year
Stage 1 gross exposures increased by $40.5 billion to $761.1 billion (31
December 2024: $720.7 billion). CIB exposure increased by $22.3 billion to
$389.4 billion (31 December 2024: $367.1 billion), mainly due to an increase
in exposures to financial guarantees and undrawn commitments. WRB increased by
$6.5 billion to $186.1 billion (31 December 2024: $179.6 billion), mainly due
to an increase in the mortgage portfolio across Korea, Taiwan and Singapore
and in Secured wealth products due to the higher demand in Singapore.
Total stage 1 provisions increased by $82 million to $664 million (31 December
2024: $582 million). CIB provisions increased by $55 million to $188 million
(31 December 2024: $133 million), due to portfolio movements and new
exposures. WRB provisions increased by $20 million to $412 million (31
December 2024: $392 million), due to Secured wealth and unsecured lending
portfolios.
Stage 2 gross exposures increased by $2.0 billion to $20.7 billion (31
December 2024: $18.6 billion), primarily driven by exposure increases in CIB
to Sovereign related and Commercial real estate clients. WRB exposures
increased by $0.2 billion to $2.2 billion (31 December 2024: $2.0 billion),
mainly due to the China secured portfolio.
Stage 2 provisions decreased by $10 million to $527 million (31 December 2024:
$537 million). CIB provisions decreased by $9 million to $353 million (31
December 2024: $362 million) due to China CRE overlay releases. WRB provisions
decreased by $5 million to $146 million (31 December 2024: $151 million),
mainly in the unsecured portfolio.
The non-linearity impact increased stage 1 and 2 provisions by $34 million to
$77 million (31 December 2024: $43 million). This reflects an increased
probability weighting of the overall downside scenarios from 32 per cent to 45
per cent, given heightened levels of tariffs and geopolitical uncertainty.
Stage 3 gross exposures for CIB decreased by $0.2 billion to $4.9 billion (31
December 2024: $5.2 billion) due to repayments. CIB provisions remained
stable at $3.4 billion (31 December 2024: $3.3 billion). WRB stage 3 loans
increased by $0.1 billion to $1.7 billion (31 December 2024: $1.6 billion)
mainly in the secured portfolio but provisions remained stable at $0.8 billion
(31 December 2024: $0.8 billion).
- page 17 -
All segments (reviewed)
Amortised cost and FVOCI Stage 1 Stage 2 Stage 35 Total
Gross balance3 Total credit impair-ment Net Gross balance3 Total credit impair-ment Net Gross balance3 Total credit impair-ment Net Gross balance3 Total credit impair-ment Net
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
As at 1 January 2024 723,876 (526) 723,350 22,268 (517) 21,751 8,144 (4,499) 3,645 754,288 (5,542) 748,746
Transfers to stage 1 16,433 (543) 15,890 (16,423) 543 (15,880) (10) - (10) - - -
Transfers to stage 2 (33,301) 128 (33,173) 33,770 (153) 33,617 (469) 25 (444) - - -
Transfers to stage 3 (1,631) 63 (1,568) (146) 168 22 1,777 (231) 1,546 - - -
Net change in exposures 29,928 (173) 29,755 (18,435) 80 (18,355) (1,383) 622 (761) 10,110 529 10,639
Net remeasurement from stage changes - 61 61 - (185) (185) - (203) (203) - (327) (327)
Changes in risk parameters - 84 84 - (242) (242) - (873) (873) - (1,031) (1,031)
Write-offs - - - - - - (1,260) 1,260 - (1,260) 1,260 -
Interest due but unpaid - - - - - - 53 (53) - 53 (53) -
Discount unwind - - - - - - - 135 135 - 135 135
Exchange translation differences and other movements¹ (14,626) 324 (14,302) (2,427) (231) (2,658) 147 (268) (121) (16,906) (175) (17,081)
As at 31 December 2024² 720,679 (582) 720,097 18,607 (537) 18,070 6,999 (4,085) 2,914 746,285 (5,204) 741,081
Income statement ECL (charge)/release(6) (28) (347) (454) (829)
Recoveries of amounts previously written off - - 279 279
Total credit impairment (charge)/release(4) (28) (347) (175) (550)
As at 1 January 2025 720,679 (582) 720,097 18,607 (537) 18,070 6,999 (4,085) 2,914 746,285 (5,204) 741,081
Transfers to stage 1 5,946 (408) 5,538 (5,945) 408 (5,537) (1) - (1) - - -
Transfers to stage 2 (18,668) 57 (18,611) 18,954 (71) 18,883 (286) 14 (272) - - -
Transfers to stage 3 (70) - (70) (988) 145 (843) 1,058 (145) 913 - - -
Net change in exposures 31,424 (129) 31,295 (9,472) (40) (9,512) (553) 304 (249) 21,399 135 21,534
Net remeasurement from stage changes - 43 43 - (88) (88) - (25) (25) - (70) (70)
Changes in risk parameters - 66 66 - (28) (28) - (606) (606) - (568) (568)
Write-offs - - - - - - (518) 518 - (518) 518 -
Interest due but unpaid - - - - - - 88 (88) - 88 (88) -
Discount unwind - - - - - - - 55 55 - 55 55
Exchange translation differences and other movements¹ 21,825 289 22,114 (500) (316) (816) 165 (121) 44 21,490 (148) 21,342
As at 30 June 2025² 761,136 (664) 760,472 20,656 (527) 20,129 6,952 (4,179) 2,773 788,744 (5,370) 783,374
Income statement ECL (charge)/release6 (20) (156) (327) (503)
Recoveries of amounts previously written off - - 175 175
Total credit impairment (charge)/release4 (20) (156) (152) (328)
1 Includes fair value adjustments and amortisation on debt securities
2 Excludes Cash and balances at central banks, Accrued income, Assets held
for sale and Other assets gross balances of $128,832 million (31 December
2024: $101,755 million) and Total credit impairment of $61 million (31
December 2024: $63 million)
3 The gross balance includes the notional amount of off balance sheet
instruments
4 Reported basis
5 Stage 3 gross includes $289 million (31 December 2024: $59 million)
originated credit-impaired debt securities with impairment of $6 million (31
December 2024: $Nil)
6 Does not include charge relating to Other assets of $8 million (31
December 2024: $3 million)
- page 18 -
Corporate & Investment Banking (reviewed)
Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total
Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net
$million
$million
$million $million
$million
$million $million
$million
$million $million
$million
$million
As at 1 January 2024 337,189 (151) 337,038 16,873 (318) 16,555 6,256 (3,651) 2,605 360,318 (4,120) 356,198
Transfers to stage 1 10,390 (245) 10,145 (10,390) 245 (10,145) - - - - - -
Transfers to stage 2 (25,698) 47 (25,651) 25,810 (58) 25,752 (112) 11 (101) - - -
Transfers to stage 3 (186) (4) (190) (186) 22 (164) 372 (18) 354 - - -
Net change in exposures 50,866 (50) 50,816 (16,508) 88 (16,420) (1,063) 607 (456) 33,295 645 33,940
Net remeasurement from stage changes - 16 16 (4) (36) (40) - (100) (100) (4) (120) (124)
Changes in risk parameters2 - 32 32 - (129) (129) - (324) (324) - (421) (421)
Write-offs - - - - - - (321) 321 - (321) 321 -
Interest due but unpaid - - - - - - 25 (25) - 25 (25) -
Discount unwind - - - - - - - 104 104 - 104 104
Exchange translation differences and other movements2 (5,455) 222 (5,233) (726) (176) (902) 13 (237) (224) (6,168) (191) (6,359)
As at 31 December 2024 367,106 (133) 366,973 14,869 (362) 14,507 5,170 (3,312) 1,858 387,145 (3,807) 383,338
Income statement ECL (charge)/release2 (2) (77) 183 104
Recoveries of amounts previously written off - - 26 26
Total credit impairment (charge)/release (2) (77) 209 130
As at 1 January 2025 367,106 (133) 366,973 14,869 (362) 14,507 5,170 (3,312) 1,858 387,145 (3,807) 383,338
Transfers to stage 1 3,585 (281) 3,304 (3,585) 281 (3,304) - - - - - -
Transfers to stage 2 (14,748) 8 (14,740) 14,975 (22) 14,953 (227) 14 (213) - - -
Transfers to stage 3 (2) - (2) (326) 39 (287) 328 (39) 289 - - -
Net change in exposures 25,369 (71) 25,298 (8,166) (28) (8,194) (347) 310 (37) 16,856 211 17,067
Net remeasurement from stage changes - - - - - - - 14 14 - 14 14
Changes in risk parameters - 24 24 - (12) (12) - (256) (256) - (244) (244)
Write-offs - - - - - - (39) 39 - (39) 39 -
Interest due but unpaid - - - - - - 76 (76) - 76 (76) -
Discount unwind - - - - - - - 39 39 - 39 39
Exchange translation differences and other movements 8,050 265 8,315 (470) (249) (719) (33) (95) (128) 7,547 (79) 7,468
As at 30 June 2025 389,360 (188) 389,172 17,297 (353) 16,944 4,928 (3,362) 1,566 411,585 (3,903) 407,682
Income statement ECL (charge)/release (47) (40) 68 (19)
Recoveries of amounts previously written off - - 29 29
Total credit impairment (charge)/release (47) (40) 97 10
1 The gross balance includes the notional amount of off balance sheet
instruments
2 Business segments have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
- page 19 -
Wealth & Retail Banking (reviewed)
Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total
Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net
$million
$million
$million $million
$million
$million $million
$million
$million $million
$million
$million
As at 1 January 2024 190,999 (325) 190,674 2,472 (140) 2,332 1,485 (759) 726 194,956 (1,224) 193,732
Transfers to stage 1 5,126 (288) 4,838 (5,116) 288 (4,828) (10) - (10) - - -
Transfers to stage 2 (7,393) 80 (7,313) 7,525 (80) 7,445 (132) - (132) - - -
Transfers to stage 3 (98) 1 (97) (1,254) 211 (1,043) 1,352 (212) 1,140 - - -
Net change in exposures (3,926) (89) (4,015) (1,505) 21 (1,484) (431) - (431) (5,862) (68) (5,930)
Net remeasurement from stage changes - 29 29 - (144) (144) - (44) (44) - (159) (159)
Changes in risk parameters2 - 35 35 - (152) (152) - (531) (531) - (648) (648)
Write-offs - - - - - - (808) 808 - (808) 808 -
Interest due but unpaid - - - - - - 28 (28) - 28 (28) -
Discount unwind - - - - - - - 30 30 - 30 30
Exchange translation differences and other movements2 (5,128) 165 (4,963) (92) (155) (247) 139 (22) 117 (5,081) (12) (5,093)
As at 31 December 2024 179,580 (392) 179,188 2,030 (151) 1,879 1,623 (758) 865 183,233 (1,301) 181,932
Income statement ECL (charge)/release2 (25) (275) (575) (875)
Recoveries of amounts previously written off - - 253 253
Total credit impairment (charge)/release (25) (275) (322) (622)
As at 1 January 2025 179,580 (392) 179,188 2,030 (151) 1,879 1,623 (758) 865 183,233 (1,301) 181,932
Transfers to stage 1 1,871 (118) 1,753 (1,870) 118 (1,752) (1) - (1) - - -
Transfers to stage 2 (3,647) 43 (3,604) 3,706 (43) 3,663 (59) - (59) - - -
Transfers to stage 3 (20) - (20) (690) 100 (590) 710 (100) 610 - - -
Net change in exposures 1,592 (29) 1,563 (1,039) 7 (1,032) (312) - (312) 241 (22) 219
Net remeasurement from stage changes - 22 22 - (88) (88) - (12) (12) - (78) (78)
Changes in risk parameters - 7 7 - (19) (19) - (363) (363) - (375) (375)
Write-offs - - - - - - (454) 454 - (454) 454 -
Interest due but unpaid - - - - - - 11 (11) - 11 (11) -
Discount unwind - - - - - - - 16 16 - 16 16
Exchange translation differences and other movements 6,679 55 6,734 87 (70) 17 185 (25) 160 6,951 (40) 6,911
As at 30 June 2025 186,055 (412) 185,643 2,224 (146) 2,078 1,703 (799) 904 189,982 (1,357) 188,625
Income statement ECL (charge)/release - (100) (375) (475)
Recoveries of amounts previously written off - - 146 146
Total credit impairment (charge)/release - (100) (229) (329)
1 The gross balance includes the notional amount of off-balance sheet
instruments
2 Business segments have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
- page 20 -
Wealth & Retail Banking - Secured (reviewed)
Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total
Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net
$million
$million
$million $million
$million
$million $million
$million
$million $million
$million
$million
As at 1 January 2024 129,798 (33) 129,765 1,827 (16) 1,811 1,062 (525) 537 132,687 (574) 132,113
Transfers to stage 1 3,839 (23) 3,816 (3,836) 23 (3,813) (3) - (3) - - -
Transfers to stage 2 (4,952) 13 (4,939) 5,054 (13) 5,041 (102) - (102) - - -
Transfers to stage 3 (43) - (43) (566) 19 (547) 609 (19) 590 - - -
Net change in exposures 2,570 (11) 2,559 (917) 8 (909) (268) - (268) 1,385 (3) 1,382
Net remeasurement from stage changes - 6 6 - (15) (15) - (7) (7) - (16) (16)
Changes in risk parameters2 - 10 10 - (6) (6) - (123) (123) - (119) (119)
Write-offs - - - - - - (114) 114 - (114) 114 -
Interest due but unpaid - - - - - - 53 (53) - 53 (53) -
Discount unwind - - - - - - - 16 16 - 16 16
Exchange translation differences and other movements2 (4,496) (10) (4,506) (57) (31) (88) (33) 41 8 (4,586) - (4,586)
As at 31 December 2024 126,716 (48) 126,668 1,505 (31) 1,474 1,204 (556) 648 129,425 (635) 128,790
Income statement ECL (charge)/release2 5 (13) (130) (138)
Recoveries of amounts previously written off - - 80 80
Total credit impairment (charge)/release 5 (13) (50) (58)
As at 1 January 2025 126,716 (48) 126,668 1,505 (31) 1,474 1,204 (556) 648 129,425 (635) 128,790
Transfers to stage 1 1,322 (6) 1,316 (1,321) 6 (1,315) (1) - (1) - - -
Transfers to stage 2 (2,521) 3 (2,518) 2,568 (3) 2,565 (47) - (47) - - -
Transfers to stage 3 (14) - (14) (338) 7 (331) 352 (7) 345 - - -
Net change in exposures 2,916 (8) 2,908 (749) (2) (751) (255) - (255) 1,912 (10) 1,902
Net remeasurement from stage changes - 3 3 - (18) (18) - (7) (7) - (22) (22)
Changes in risk parameters - (14) (14) - 25 25 - (129) (129) - (118) (118)
Write-offs - - - - - - (114) 114 - (114) 114 -
Interest due but unpaid - - - - - - 53 (53) - 53 (53) -
Discount unwind - - - - - - - 9 9 - 9 9
Exchange translation differences and other movements 5,735 13 5,748 69 (14) 55 63 62 125 5,867 61 5,928
As at 30 June 2025 134,154 (57) 134,097 1,734 (30) 1,704 1,255 (567) 688 137,143 (654) 136,489
Income statement ECL (charge)/release (19) 5 (136) (150)
Recoveries of amounts previously written off - - 46 46
Total credit impairment (charge)/release (19) 5 (90) (104)
1 The gross balance includes the notional amount of off balance sheet
instruments
2 Business segments have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
- page 21 -
Wealth & Retail Banking - Unsecured (reviewed)
Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total
Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net Gross balance1 Total credit impair-ment Net
$million
$million
$million $million
$million
$million $million
$million
$million $million
$million
$million
As at 1 January 2024 61,201 (292) 60,909 645 (124) 521 423 (234) 189 62,269 (650) 61,619
Transfers to stage 1 1,287 (265) 1,022 (1,280) 265 (1,015) (7) - (7) - - -
Transfers to stage 2 (2,441) 67 (2,374) 2,471 (67) 2,404 (30) - (30) - - -
Transfers to stage 3 (55) 1 (54) (688) 192 (496) 743 (193) 550 - - -
Net change in exposures (6,496) (78) (6,574) (588) 13 (575) (163) - (163) (7,247) (65) (7,312)
Net remeasurement from stage changes - 23 23 - (129) (129) - (37) (37) - (143) (143)
Changes in risk parameters - 25 25 - (146) (146) - (408) (408) - (529) (529)
Write-offs - - - - - - (694) 694 - (694) 694 -
Interest due but unpaid - - - - - - (25) 25 - (25) 25 -
Discount unwind - - - - - - - 14 14 - 14 14
Exchange translation differences and other movements (632) 175 (457) (35) (124) (159) 172 (63) 109 (495) (12) (507)
As at 31 December 2024 52,864 (344) 52,520 525 (120) 405 419 (202) 217 53,808 (666) 53,142
Income statement ECL (charge)/release (30) (262) (445) (737)
Recoveries of amounts previously written off - - 172 172
Total credit impairment (charge)/release (30) (262) (273) (565)
As at 1 January 2025 52,864 (344) 52,520 525 (120) 405 419 (202) 217 53,808 (666) 53,142
Transfers to stage 1 549 (112) 437 (549) 112 (437) - - - - - -
Transfers to stage 2 (1,126) 40 (1,086) 1,138 (40) 1,098 (12) - (12) - - -
Transfers to stage 3 (6) - (6) (352) 93 (259) 358 (93) 265 - - -
Net change in exposures (1,324) (21) (1,345) (290) 9 (281) (57) - (57) (1,671) (12) (1,683)
Net remeasurement from stage changes - 19 19 - (70) (70) - (5) (5) - (56) (56)
Changes in risk parameters - 21 21 - (44) (44) - (234) (234) - (257) (257)
Write-offs - - - - - - (340) 340 - (340) 340 -
Interest due but unpaid - - - - - - (42) 42 - (42) 42 -
Discount unwind - - - - - - - 7 7 - 7 7
Exchange translation differences and other movements 944 42 986 18 (56) (38) 122 (87) 35 1,084 (101) 983
As at 30 June 2025 51,901 (355) 51,546 490 (116) 374 448 (232) 216 52,839 (703) 52,136
Income statement ECL (charge)/release 19 (105) (239) (325)
Recoveries of amounts previously written off - - 100 100
Total credit impairment (charge)/release 19 (105) (139) (225)
1 The gross balance includes the notional amount of off balance sheet
instruments
- page 22 -
Analysis of stage 2 balances
The table below analyses total stage 2 gross on-and off-balance sheet
exposures and associated expected credit provisions by the key SICR driver
that caused the exposures to be classified as stage 2 as at 30 June 2025 and
31 December 2024 for each segment.
Where multiple drivers apply, the exposure is allocated based on the table
order. For example, a loan may have breached the PD thresholds and could also
be on non-purely precautionary early alert; in this instance, the exposure is
reported under 'Increase in PD'.
30.06.25
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items1 Tot
al
Gross ECL Cove-rage Gross ECL Cove-rage Gross ECL Cove-rage Gross ECL Cove-rage Gross ECL Cove-rage
$million
$million
%
$million
$million
%
$million
$million
%
$million
$million
%
$million
$million
%
Increase in PD 9,051 137 1.5% 1,598 121 7.6% 51 17 33.3% 188 4 2.1% 10,888 279 2.6%
Non-purely precautionary early alert 3,911 27 0.7% 34 - 0.0% - - 0.0% 159 - 0.0% 4,104 27 0.7%
Higher risk (CG12) 1,618 45 2.8% 20 - 0.0% - - 0.0% 1,183 7 0.6% 2,821 52 1.8%
Top up/Sell down (Private Banking) - - 0.0% 187 - 0.0% - - 0.0% - - 0.0% 187 - 0.0%
Others 2,717 20 0.7% 180 5 2.8% - - 0.0% 26 - 0.0% 2,923 25 0.9%
30 days past due - - 0.0% 205 17 8.3% 7 3 42.9% - - 0.0% 212 20 9.4%
Management overlay - 124 0.0% - 3 0.0% - - 0.0% - - 0.0% - 127 0.0%
Total stage 2 17,297 353 2.0% 2,224 146 6.6% 58 20 34.5% 1,556 11 0.7% 21,135 530 2.5%
31.12.24
Increase in PD 8,465 112 1.3% 1,366 104 7.6% 48 20 31.3% 154 - 0.0% 10,033 236 2.4%
Non-purely precautionary early alert 3,473 44 1.3% 30 - 0.0% - - 0.0% - - 0.0% 3,503 44 1.3%
Higher risk (CG12) 686 24 3.5% 18 - 0.0% - - 0.0% 1,488 1 0.4% 2,192 25 1.1%
Top up/Sell down (Private Banking) - - 0.0% 254 1 0.4% - - 0.0% - - 0.0% 254 1 0.4%
Others 2,245 25 1.1% 150 5 3.3% - - 0.0% 482 - 0.0% 2,877 30 1.0%
30 days past due - - 0.0% 212 19 9.0% 6 4 66.7% - - 0.0% 218 23 10.6%
Management overlay - 157 0.0% - 22 0.0% - 3 0.0% - - 0.0% - 182 0.0%
Total stage 2 14,869 362 2.4% 2,030 151 7.4% 54 27 40.7% 2,124 1 0.3% 19,077 541 2.8%
1 Includes Gross and ECL for Cash and balances at central banks and Assets
held for sale
Credit impairment charge (reviewed)
The table below analyses credit impairment charges or releases of the ongoing
business portfolio and restructuring business portfolio for the half year
ended 30 June 2025.
30.06.25 30.06.241
Stage 1 & 2 Stage 3 Total Stage 1 & 2 Stage 3 Total
$million
$million
$million
$million
$million
$million
Ongoing business portfolio
Corporate & Investment Banking 85 (99) (14) (51) (3) (54)
Wealth & Retail Banking 103 229 332 123 144 267
Ventures (3) 27 24 7 36 43
Central & other items (6) - (6) (6) (1) (7)
Credit impairment charge 179 157 336 73 176 249
Restructuring business portfolio
Others (2) 2 - 2 (11) (9)
Credit impairment charge/(release) (2) 2 - 2 (11) (9)
Total credit impairment charge 177 159 336 75 165 240
1 Business segments have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025, with no
change in total credit impairment charge
- page 23 -
Problem credit management and provisioning (reviewed)
Forborne and other modified loans by client segment
A forborne loan arises when a concession has been made to the contractual
terms of a loan in response to a customer's financial difficulties.
Net forborne loans increased by $192 million to $976 million (31 December
2024: $784 billion), largely in CIB due to new loans classified as performing
forborne in Hong Kong. Non-performing forborne loans stock increased by $41
million to $773 million (31 December 2024: $732 million), mainly in WRB.
Amortised cost 30.06.25 31.12.24
Corporate & Investment Banking Wealth & Total Corporate & Investment Banking Wealth & Total
$million
Retail Banking
$million
$million
Retail Banking
$million
$million
$million
Gross stage 1 and 2 forborne loans 224 53 277 17 36 53
Modification of terms and conditions1 20 53 73 17 36 53
Refinancing2 204 - 204 - - -
Impairment provisions (73) (1) (74) - (1) (1)
Modification of terms and conditions1 (1) (1) (2) - (1) (1)
Refinancing2 (72) - (72) - - -
Net stage 1 and 2 forborne loans 151 52 203 17 35 52
Collateral - 43 43 - 27 27
Gross stage 3 forborne loans 2,098 309 2,407 2,065 258 2,323
Modification of terms and conditions1 1,802 309 2,111 1,824 258 2,082
Refinancing2 296 - 296 241 - 241
Impairment provisions (1,512) (122) (1,634) (1,481) (110) (1,591)
Modification of terms and conditions1 (1,254) (122) (1,376) (1,242) (110) (1,352)
Refinancing2 (258) - (258) (239) - (239)
Net stage 3 forborne loans 586 187 773 584 148 732
Collateral 200 24 224 172 55 227
Net carrying value of forborne loans 737 239 976 601 183 784
1 Modification of terms is any contractual change apart from refinancing,
as a result of credit stress of the counterparty, i.e. interest reductions,
loan covenant waivers
2 Refinancing is a new contract to a borrower in credit stress, such that
they are refinanced and can pay other debt contracts that they were unable to
honour
Forborne and other modified loans by key geography
Net forborne loans increased by $192 million to $976 million (31 December
2024: $784 million), mainly on the performing forborne loans in Hong Kong.
Amortised cost 30.06.25 31.12.241
Hong Kong Korea China Singa-pore UK US Other Total Hong Kong Korea China Singa-pore UK US Other Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Performing forborne loans 134 14 - 3 - - 52 203 2 8 - 3 - - 39 52
Stage 3 forborne loans 113 24 75 27 102 1 431 773 110 25 85 25 81 1 405 732
Net forborne loans 247 38 75 30 102 1 483 976 112 33 85 28 81 1 444 784
1 Amounts have been re-presented from management view to financial booking
basis in line with RNS on Re-Presentation of Financial Information issued on 2
April 2025
Credit Risk mitigation
Potential credit losses from any given account, customer or portfolio are
mitigated using a range of tools such as collateral, netting arrangements,
credit insurance and credit derivatives, and guarantees. The reliance that can
be placed on these mitigants is carefully assessed in consideration of legal
certainty and enforceability, market valuation correlation and counterparty
risk of the guarantor.
- page 24 -
Collateral held on loans and advances
The table below details collateral held against exposures, separately
disclosing stage 2 and stage 3 exposure and corresponding collateral.
Amortised cost 30.06.25
Net amount outstanding Collateral Net
exp
osu
re
Total Stage 2 financial Credit-impaired financial Total2 Stage 2 financial Credit-impaired financial Total Stage 2 financial Credit-impaired financial
$million
assets
assets (S3) $million
|assets
assets (S3)
$million
assets
assets (S3)
$million
$million
$million
$million
$million
$million
Corporate & Investment Banking1 182,564 10,803 1,214 33,937 3,688 294 148,627 7,115 920
Wealth & Retail Banking 126,708 1,937 901 95,041 1,128 656 31,667 809 245
Ventures 1,555 29 3 - - - 1,555 29 3
Central & other items 18,290 21 - 810 21 - 17,480 - -
Total 329,117 12,790 2,118 129,788 4,837 950 199,329 7,953 1,168
31.12.24
Corporate & Investment Banking1 181,897 8,657 1,376 36,750 3,052 298 145,147 5,605 1,078
Wealth & Retail Banking 119,248 1,758 858 85,163 891 584 34,085 867 274
Ventures 1,389 25 1 - - - 1,389 25 1
Central & other items 22,091 35 98 80 35 - 22,011 - 98
Total 324,625 10,475 2,333 121,993 3,978 882 202,632 6,497 1,451
1 Includes loans and advances to banks
2 Adjusted for over-collateralisation based on the drawn and undrawn
components of exposures
Collateral - Corporate & Investment Banking (reviewed)
Our underwriting standards encourage taking specific charges on assets and we
consistently seek high-quality, investment grade collateral.
Collateral taken for longer-term and sub-investment grade corporate loans
decreased to 47 per cent (31 December 2024: 49 per cent).
The unadjusted market value of collateral across all asset types, in respect
of CIB, without adjusting for over collateralisation, decreased to $378
billion (31 December 2024: $383 billion) predominantly due to a decrease in
reverse repos.
87.0 per cent (31 December 2024: 88.5 per cent) of tangible collateral
excluding reverse repurchase agreements and financial guarantees held
comprises of physical assets with the remainder held in cash. Overall
collateral decreased by $2.8 billion to $33.9 billion (31 December 2024:
$36.8 billion) due to a reduction in reverse repos.
Non-tangible collateral, such as guarantees and standby letters of credit, is
also held against corporate exposures, although the financial effect of this
type of collateral is less significant in terms of recoveries. However, this
is considered when determining the loss given default and other credit-related
factors. Collateral is also held against off-balance sheet exposures,
including undrawn commitments and trade-related instruments.
- page 25 -
Corporate & Investment Banking
Amortised cost 30.06.25 31.12.24
$million
$million
Maximum exposure 182,564 181,897
Property 9,917 8,504
Plant, machinery and other stock 901 935
Cash 2,367 1,973
Reverse repos 7,641 12,568
AAA 587 -
AA- to AA+ 776 938
A- to A+ 3,034 8,324
BBB- to BBB+ 578 1,437
Lower than BBB- - 95
Unrated 2,666 1,774
Financial guarantees and insurance 8,027 7,075
Commodities 9 33
Ships and aircraft 5,075 5,662
Total value of collateral1 33,937 36,750
Net exposure 148,627 145,147
1 Adjusted for over-collateralisation based on the drawn and undrawn
components of exposures
Collateral - Wealth & Retail Banking (reviewed)
In WRB, fully secured products remained stable at 86 per cent of the total
portfolio (31 December 2024: 85 per cent).
The following table presents an analysis of loans to individuals by product;
split between fully secured, partially secured and unsecured.
Amortised cost 30.06.25 31.12.24
Fully secured1 Partially secured1 Unsecured Total2 Fully secured1 Partially secured1 Unsecured Total²
$million $million
$million $million $million $million
$million
$million
Maximum exposure 109,035 662 17,011 126,708 101,264 536 17,448 119,248
Loans to individuals
Mortgages 81,868 - - 81,868 76,696 - - 76,696
CCPL(5) - - 15,830 15,830 - - 16,343 16,343
Secured wealth products 24,458 - - 24,458 21,928 - - 21,928
Other4,5 2,709 662 1,181 4,552 2,640 536 1,105 4,281
Total collateral2 95,041 85,163
Net exposure3 31,667 34,085
Percentage of total loans 86% 1% 13% 85% 0% 15%
1 Secured loans are fully secured if the fair value of the collateral is
equal to or greater than the loan at the time of origination. All other
secured loans are considered to be partially secured
2 Collateral values are adjusted where appropriate in accordance with our
risk mitigation policy and for the effect of over-collateralisation
3 Amounts net of ECL
4 Includes Auto Loans previously presented separately. Prior period has
been represented
5 Prior period has been represented between CCPL and Other under Fully
secured
Mortgage loan-to-value ratios by geography (reviewed)
Loan-to-value (LTV) ratios measure the ratio of the current mortgage
outstanding to the current fair value of the properties on which they are
secured. An analysis of LTV ratios by geography for the mortgage portfolio is
presented in the table below.
For the majority of mortgage loans, the value of property held as security
significantly exceeds the principal outstanding of the loan. The average LTV
of the overall mortgage portfolio remains stable at 49.0 per cent (31 December
2024: 48.9 per cent). The Hong Kong mortgage portfolio represents 32 per cent
of total WRB mortgage portfolio and the increase in LTV from 58.6 per cent to
59.4 per cent was primarily due to a decrease in property prices. However, 29
per cent of the Hong Kong mortgage exposure is backed by credit insurance and,
specifically, 94 per cent of mortgage exposure with LTV greater than 80 per
cent is backed by credit insurance.
- page 26 -
Our other key markets continued to have low portfolio LTVs (Korea and
Singapore at 42.9 per cent and 42.5 per cent respectively). Korea portfolio
LTV increased slightly by 0.8 per cent (31 December 2024: 42.1 per cent)
primarily due to government relaxations on LTV.
Amortised cost 30.06.25 31.12.24
Hong Kong Singapore Korea Other Total Hong Kong Singapore Korea Other Total
%
%
%
%
%
%
%
%
%
%
Gross
Gross
Gross
Gross
Gross
Gross
Gross
Gross
Gross
Gross
Less than 50 per cent 39.2 53.6 61.3 48.6 50.4 40.9 52.7 64.1 50.2 51.3
50 per cent to 59 per cent 17.1 21.2 13.6 14.9 16.2 17.6 21.8 13.2 15.4 16.5
60 per cent to 69 per cent 13.5 14.0 15.0 17.5 14.9 12.7 15.6 13.5 17.0 14.3
70 per cent to 79 per cent 6.7 11.0 9.0 13.3 9.5 5.5 9.6 8.3 12.7 8.5
80 per cent to 89 per cent 5.2 0.1 0.9 5.0 3.0 5.1 0.1 0.8 4.1 2.9
90 per cent to 99 per cent 8.5 0.0 0.1 0.4 2.8 8.2 0.0 0.1 0.5 3.0
100 per cent and greater 9.8 0.1 0.1 0.2 3.2 10.1 0.1 0.1 0.2 3.5
Average portfolio loan-to-value 59.4 42.5 42.9 48.4 49.0 58.6 42.5 42.1 48.0 48.9
Loans to individuals - mortgages ($million) 31,055 14,836 16,997 18,980 81,868 31,506 13,756 13,703 17,731 76,696
Collateral and other credit enhancements possessed or called upon (reviewed)
The Group obtains assets by taking possession of collateral (such as property,
plant and equipment) or calling upon other credit enhancements (such as
guarantees). Repossessed properties are sold in an orderly fashion. Where the
proceeds are in excess of the outstanding loan balance, the excess is returned
to the borrower.
Certain equity securities acquired may be held by the Group for investment
purposes and are classified as fair value through profit or loss, and the
related loan written off. The carrying value of collateral possessed that is
held on the Group's balance sheet at the end of 30 June 2025 was $nil (31
December 2024: $24 million).
Other Credit risk mitigation (reviewed)
Other forms of credit risk mitigation are set out below.
Credit default swaps
The Group has entered into credit default swaps for portfolio management
purposes, referencing loan assets with a notional value of $5 billion (31
December 2024: $3.5 billion). These credit default swaps are accounted for as
financial guarantees as per IFRS 9 as they will only reimburse the holder for
an incurred loss on an underlying debt instrument. The Group continues to hold
the underlying assets referenced in the credit default swaps and it continues
to be exposed to related Credit Risk and Foreign Exchange Rate Risk on these
assets.
Credit linked notes
The Group has issued credit linked notes for portfolio management purposes,
referencing loan assets with a notional value of $21.6 billion (31 December
2024: $18.6 billion). The Group continues to hold the underlying assets for
which the credit linked notes provide mitigation. The credit linked notes of
$1.8 billion (31 December 2024: $2.0 billion) are recognised as a financial
liability at amortised cost on the balance sheet and are adjusted, where
appropriate, for reductions in expected future cash flows with a corresponding
credit impairment in the income statement.
Off-balance sheet exposures
For certain types of exposures, such as letters of credit and guarantees, the
Group obtains collateral such as cash depending on internal Credit Risk
assessments, as well as in the case of letters of credit holding legal title
to the underlying assets should a default take place.
Other portfolio analysis
This section provides analysis of credit quality by industry, and industry and
retail products analysis of loans and advances by key geography.
- page 27 -
Credit quality by industry
Loans and advances
This section provides an analysis of the Group's amortised cost portfolio by
industry on a gross, total credit impairment and net basis.
Amortised cost 30.06.25
Stage 1 Stage 2 Stage 3 Tot
al
Gross balance Total credit impair-ment Net carrying amount Gross balance Total credit impair-ment Net carrying amount Gross balance Total credit impair-ment Net carrying amount Gross balance Total credit impair-ment Net carrying amount
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Industry:
Energy 12,862 (18) 12,844 709 (58) 651 797 (532) 265 14,368 (608) 13,760
Manufacturing 20,884 (12) 20,872 901 (14) 887 403 (309) 94 22,188 (335) 21,853
Financing, insurance 33,065 (21) 33,044 1,124 (3) 1,121 175 (161) 14 34,364 (185) 34,179
and non-banking
Transport, telecom 16,723 (16) 16,707 2,309 (38) 2,271 396 (100) 296 19,428 (154) 19,274
and utilities
Food and household products 8,846 (7) 8,839 338 (15) 323 212 (200) 12 9,396 (222) 9,174
Commercial real estate 11,977 (27) 11,950 2,139 (142) 1,997 1,609 (1,336) 273 15,725 (1,505) 14,220
Mining and quarrying 5,283 (3) 5,280 200 (5) 195 54 (51) 3 5,537 (59) 5,478
Consumer durables 6,969 (8) 6,961 229 (7) 222 254 (241) 13 7,452 (256) 7,196
Construction 1,949 (2) 1,947 484 (4) 480 161 (153) 8 2,594 (159) 2,435
Trading companies & distributors 524 - 524 12 (1) 11 94 (54) 40 630 (55) 575
Government 23,700 (5) 23,695 1,397 (14) 1,383 101 (24) 77 25,198 (43) 25,155
Other 4,551 (5) 4,546 553 (5) 548 165 (90) 75 5,269 (100) 5,169
Total 147,333 (124) 147,209 10,395 (306) 10,089 4,421 (3,251) 1,170 162,149 (3,681) 158,468
Retail Products:
Mortgage 80,210 (9) 80,201 1,160 (3) 1,157 648 (138) 510 82,018 (150) 81,868
Credit Cards 7,866 (134) 7,732 229 (79) 150 69 (58) 11 8,164 (271) 7,893
Personal Loan and other unsecured lending 9,375 (230) 9,145 228 (50) 178 306 (137) 169 9,909 (417) 9,492
Secured wealth products 23,985 (43) 23,942 349 (4) 345 532 (361) 171 24,866 (408) 24,458
Other 4,386 (13) 4,373 159 (23) 136 160 (117) 43 4,705 (153) 4,552
Total 125,822 (429) 125,393 2,125 (159) 1,966 1,715 (811) 904 129,662 (1,399) 128,263
Net carrying value (customers)¹ 273,155 (553) 272,602 12,520 (465) 12,055 6,136 (4,062) 2,074 291,811 (5,080) 286,731
Net carrying value (Banks)1 41,613 (6) 41,607 737 (2) 735 48 (4) 44 42,398 (12) 42,386
1 Includes reverse repurchase agreements and other similar secured lending
held at amortised cost of $4,189 million for customers and $4,250 million for
Banks
- page 28 -
Amortised cost 31.12.24
Stage 1 Stage 2 Stage 3 Tot
al
Gross balance Total credit impair-ment Net carrying amount Gross balance Total credit impair-ment Net carrying amount Gross balance Total credit impair-ment Net carrying amount Gross balance Total credit impair-ment Net carrying amount
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Industry:
Energy 12,147 (9) 12,138 468 (57) 411 870 (559) 311 13,485 (625) 12,860
Manufacturing 19,942 (12) 19,930 840 (16) 824 418 (305) 113 21,200 (333) 20,867
Financing, insurance 34,452 (16) 34,436 1,238 (6) 1,232 154 (142) 12 35,844 (164) 35,680
and non-banking
Transport, telecom 16,099 (11) 16,088 2,309 (32) 2,277 330 (85) 245 18,738 (128) 18,610
and utilities
Food and household products 8,425 (8) 8,417 267 (8) 259 251 (198) 53 8,943 (214) 8,729
Commercial real estate 12,135 (10) 12,125 1,714 (126) 1,588 1,485 (1,265) 220 15,334 (1,401) 13,933
Mining and quarrying 5,542 (3) 5,539 287 (12) 275 124 (57) 67 5,953 (72) 5,881
Consumer durables 5,988 (6) 5,982 218 (26) 192 292 (259) 33 6,498 (291) 6,207
Construction 1,925 (2) 1,923 528 (5) 523 171 (160) 11 2,624 (167) 2,457
Trading companies & distributors 589 - 589 24 (1) 23 88 (48) 40 701 (49) 652
Government 28,870 - 28,870 441 (12) 429 205 (18) 187 29,516 (30) 29,486
Other 4,590 (3) 4,587 344 (2) 342 186 (82) 104 5,120 (87) 5,033
Total 150,704 (80) 150,624 8,678 (303) 8,375 4,574 (3,178) 1,396 163,956 (3,561) 160,395
Retail Products:
Mortgage 75,340 (8) 75,332 896 (2) 894 606 (136) 470 76,842 (146) 76,696
Credit Cards 8,037 (121) 7,916 222 (80) 142 71 (60) 11 8,330 (261) 8,069
Personal Loan and other unsecured lending(3) 9,563 (228) 9,335 236 (53) 183 274 (129) 145 10,073 (410) 9,663
Secured wealth products 21,404 (37) 21,367 402 (6) 396 518 (353) 165 22,324 (396) 21,928
Other2,3 4,054 (9) 4,045 197 (29) 168 160 (92) 68 4,411 (130) 4,281
Total 118,398 (403) 117,995 1,953 (170) 1,783 1,629 (770) 859 121,980 (1,343) 120,637
Net carrying value (customers)¹ 269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032
Net carrying value (Banks)1 43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593
1 Includes reverse repurchase agreements and other similar secured lending
held at amortised cost of $9,660 million for customers and $2,946 million for
Banks
2 Includes Auto Loans previously presented separately. Prior period has
been represented
3 Prior period has been represented between Personal Loan and other
unsecured lending and Other
Industry and Retail Products analysis of loans and advances by key geography
This section provides an analysis of the Group's amortised cost loan
portfolio, net of provisions, by industry and geography.
The Manufacturing sector group is spread across a diverse range of industries,
including automobiles and components, capital goods, pharmaceuticals, biotech
and life sciences, technology hardware and equipment, chemicals, paper
products and packaging, with lending spread over 3,052 clients.
- page 29 -
Corporate & Investment Banking and Central & other items
Amortised Cost 30.06.25 31.12.241
Hong Kong China Singa-pore UK US Other Total Hong Kong China Singa-pore UK US Other Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Energy 2,003 82 3,240 2,969 1,658 3,808 13,760 1,036 60 3,089 3,666 1,771 3,238 12,860
Manufacturing 4,179 4,340 2,105 831 2,875 7,523 21,853 4,077 4,200 1,655 660 2,307 7,968 20,867
Financing, insurance and non-banking 4,089 3,780 3,132 6,895 11,584 4,699 34,179 3,633 3,486 2,401 12,282 9,900 3,978 35,680
Transport, telecom and utilities 5,153 268 4,059 2,465 902 6,427 19,274 5,131 612 3,766 2,596 880 5,625 18,610
Food and household products 489 314 1,705 1,447 865 4,354 9,174 1,038 428 1,472 1,151 685 3,955 8,729
Commercial Real estate 4,193 320 1,040 1,496 1,978 5,193 14,220 4,512 334 1,421 1,107 1,575 4,984 13,933
Mining and Quarrying 518 718 501 1,405 102 2,234 5,478 608 606 866 1,644 214 1,943 5,881
Consumer durables 3,461 346 358 97 423 2,511 7,196 2,780 293 504 154 481 1,995 6,207
Construction 285 124 352 136 240 1,298 2,435 318 156 482 96 247 1,158 2,457
Trading Companies & Distributors 56 115 99 31 49 225 575 95 103 106 31 40 277 652
Government 4,821 26 16,003 1,440 3 2,862 25,155 3,836 117 20,266 1,671 4 3,592 29,486
Other 1,266 625 1,011 704 355 1,208 5,169 1,419 563 816 724 233 1,278 5,033
Net Loans and advances 30,513 11,058 33,605 19,916 21,034 42,342 158,468 28,483 10,958 36,844 25,782 18,337 39,991 160,395
to Customers
Net Loans and advances 13,054 2,096 8,312 4,143 1,855 12,926 42,386 15,058 2,432 7,701 4,337 2,322 11,743 43,593
to Banks
1 Amounts have been re-presented from management view to financial booking
basis in line with RNS on Re-Presentation of Financial Information issued on 2
April 2025 and also to include Central & others amounts
Wealth & Retail Banking and Ventures
Amortised Cost 30.06.25 31.12.242
Hong Kong Korea Singapore Other Total Hong Kong Korea Singapore Other Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Mortgages 31,055 16,997 14,836 18,980 81,868 31,506 13,703 13,756 17,731 76,696
Credit Cards 4,063 25 2,441 1,364 7,893 4,262 38 2,252 1,517 8,069
Personal Loans and other unsecured lending(3) 1,057 2,838 336 5,261 9,492 1,057 2,796 301 5,509 9,663
Secured wealth products 5,976 24 12,605 5,853 24,458 5,229 24 10,793 5,882 21,928
Other Retail1,3 586 2,278 159 1,529 4,552 579 2,153 194 1,355 4,281
Net Loans and advances to Customers 42,737 22,162 30,377 32,987 128,263 42,633 18,714 27,296 31,994 120,637
1 Includes Auto Loans previously presented separately. Prior period has
been represented
2 Prior year has been represented to include Ventures
3 Prior period has been represented between Personal Loans and other
unsecured lending and Other Retail
High carbon sectors
Sectors are identified and grouped as per the International Standard
Industrial Classification (ISIC) system and exposure numbers have been updated
to include all in-scope ISIC codes used for target setting among the high
carbon sectors.
The maximum exposures shown in the table include loans and advances to
customers at amortised cost, Fair Value through profit or loss, and committed
facilities available as per IFRS 9 - Financial Instruments.
- page 30 -
Maximum exposure
Amortised Cost 30.06.25
Maximum on Balance Sheet Exposure Collateral Net On Undrawn Commitments (net of credit impairment) Financial Guarantees Net Off Balance Sheet Exposure Total On & Off Balance Sheet
(net of credit impairment)
$million
Balance Sheet Exposure
$million
(net of credit impairment)
$million
Net Exposure
$million
$million
$million
$million
Industry:
Automotive manufacturers 3,960 395 3,565 4,066 717 4,783 8,348
Aviation 1,698 1,042 656 856 881 1,737 2,393
Steel 1,615 354 1,261 807 357 1,164 2,425
Coal Mining 1 1 - - - - -
Aluminium 1,263 48 1,215 303 65 368 1,583
Cement 691 65 626 946 244 1,190 1,816
Shipping 6,826 4,458 2,368 2,572 361 2,933 5,301
Commercial Real Estate 8,292 3,981 4,311 3,273 410 3,683 7,994
Oil & Gas 8,668 991 7,677 8,689 7,025 15,714 23,391
Power 6,888 1,318 5,570 4,916 1,103 6,019 11,589
Total1 39,902 12,653 27,249 26,428 11,163 37,591 64,840
Total Corporate & Investment Banking2 204,061 27,787 176,274 135,007 94,237 229,244 405,518
Total Group3 429,962 129,788 300,174 209,765 103,840 313,605 613,779
31.12.24
Industry:
Automotive manufacturers 3,881 69 3,812 3,331 605 3,936 7,748
Aviation 1,829 960 869 842 928 1,770 2,639
Steel 1,526 316 1,210 816 325 1,141 2,351
Coal Mining 25 - 25 - - - 25
Aluminium 1,341 32 1,309 354 53 407 1,716
Cement 709 55 654 637 267 904 1,558
Shipping 7,038 5,037 2,001 2,176 397 2,573 4,574
Commercial Real Estate 7,635 3,400 4,235 2,758 684 3,442 7,677
Oil & Gas 7,421 988 6,433 7,928 7,079 15,007 21,440
Power 6,341 1,500 4,841 4,538 1,124 5,662 10,503
Total1 37,746 12,357 25,389 23,380 11,462 34,842 60,231
Total Corporate & Investment Banking2 196,823 32,152 164,671 118,106 81,132 199,238 363,909
Total Group3 420,117 121,993 298,124 193,115 90,602 283,717 581,841
1 Maximum on Balance sheet exposure includes FVTPL amount of High Carbon
sector is $644 million (31 December 2024: $749 million)
2 Include on balance sheet FVTPL amount of $63,882 million (31 December
2024: $ 58,519 million) for Corporate & Investment Banking loans to
customers
3 Total Group includes net loans and advances to banks and net loans and
advances to customers held at amortised cost of $42,386 million (31 December
2024: $43,593 million) and $286,731 (31 December 2024: $281,032 million)
respectively and loans to banks and loans and advances to customers held at
FVTPL of $36,958 million (31 December 2024: $ 36,967 million) and $63,887
million (31 December 2024: $ 58,525 million) respectively. Refer to the credit
quality table below
Maturity and expected credit loss for high-carbon sectors
Sector 30.06.25 31.12.24
Loans and advances (Drawn funding) Maturity Buckets1 Expected Credit Loss Loans and advances (Drawn funding) Maturity Buckets1 Expected Credit Loss
$million
$million
$million
$million
Less than More than More than Less than More than More than
1 year
1 to 5 years
5 years
1 year
1 to 5 years
5 years
$million
$million
$million
$million
$million
$million
Automotive Manufacturers 3,961 3,511 372 78 1 3,883 3,458 369 56 2
Aviation 1,704 405 56 1,243 6 1,833 231 404 1,198 4
Cement 731 372 359 - 40 724 356 368 - 15
Coal Mining 15 15 - - 14 38 25 13 - 13
Steel 1,676 927 156 593 61 1,598 941 133 524 72
Aluminium 1,271 1,116 155 - 8 1,352 1,089 177 86 11
Oil & Gas 8,823 2,678 2,630 3,515 155 7,580 2,601 2,407 2,572 159
Power 6,957 1,899 1,688 3,370 69 6,401 1,700 1,404 3,297 60
Shipping 6,845 1,070 2,170 3,605 19 7,053 1,035 2,450 3,568 15
Commercial Real Estate 8,456 4,104 4,147 205 164 7,773 3,880 3,680 213 138
Total balance1 40,439 16,097 11,733 12,609 537 38,235 15,316 11,405 11,514 489
1 Gross of credit impairment
- page 31 -
Sectors of interest
Commercial Real Estate
30.06.25
Maximum on Balance Sheet Exposure Collateral Net On Undrawn Commitments (net of credit impairment) Financial Guarantees Net Off Total On & Off Balance Sheet
(net of credit impairment)1
$million
Balance Sheet Exposure
$million
(net of credit impairment)
Balance Sheet Exposure
Net Exposure
$million
$million
$million
$million
$million
Commercial Real Estate 14,561 6,637 7,924 5,894 713 6,607 14,531
31.12.24
Commercial Real Estate 14,037 5,947 8,090 4,932 670 5,602 13,692
1 Includes net loans and advances of $14,220 million (31 December 2024:
$13,933 million) as detailed in the table below.
Analysis of credit quality of loans and advances of Commercial Real Estate
Amortised Costs 30.06.25 31.12.24
Gross
Gross
$million
$million
Strong 7,707 7,222
Satisfactory 6,005 6,515
Higher risk 403 112
Credit impaired (stage 3) 1,609 1,485
Total Gross Balance 15,724 15,334
Strong (24) (83)
Satisfactory (83) (44)
Higher risk (61) (9)
Credit impaired (stage 3) (1,336) (1,265)
Total Credit Impairment (1,504) (1,401)
Total Net of Credit Impairment 14,220 13,933
Strong 0.3% 1.1%
Satisfactory 1.4% 0.7%
Higher risk 15.1% 8.0%
Credit impaired (stage 3) 83.0% 85.1%
Cover Ratio 9.6% 9.1%
An analysis of the net CRE loans and advances balance by key geography, is set
out below.
China commercial real estate
The table below represents the on and off-balance sheet items that are exposed
to China CRE by credit quality.
30.06.25 31.12.24
China Hong Kong Total China Hong Kong Total
$million
$million
$million
$million
$million
$million
Loans to customers 312 1,567 1,879 324 1,598 1,922
Off balance sheet - 26 26 1 40 41
Total 312 1,593 1,905 325 1,638 1,963
Loans to customers - By Credit quality
Gross
Strong - - - - 12 12
Satisfactory 148 323 471 172 338 510
Higher risk 33 - 33 12 42 54
Credit impaired (stage 3) 131 1,244 1,375 140 1,206 1,346
Total 312 1,567 1,879 324 1,598 1,922
Loans to customers - ECL
Strong - - - - - -
Satisfactory - (60) (60) (2) (73) (75)
Higher risk - - - - (1) (1)
Credit impaired (stage 3) (64) (1,155) (1,219) (63) (1,111) (1,174)
Total (64) (1,215) (1,279) (65) (1,185) (1,250)
- page 32 -
Debt securities and other eligible bills (reviewed)
This section provides further detail on gross debt securities and treasury
bills.
The credit quality descriptions in the table below align to those used for CIB
and Central and other items, as described below. Debt securities held that
have a short-term external rating are reported against the long-term rating of
the issuer. For securities that are unrated, the Group applies an internal
credit rating, as described under the 'Credit rating and measurement' section
on page 201 of the 2024 Annual Report.
Total gross debt securities and other eligible bills increased by $14 billion
to $157.6 billion (31 December 2024: $143.6 billion) due to investments in
high quality liquid assets.
Stage 1 gross balance increased by $14.4 billion to $156.3 billion (31
December 2024: $141.9 billion), mainly due Hong Kong exposures.
Stage 2 gross balance decreased by $0.6 billion to $1.1 billion (31 December
2024: $1.6 billion).
Stage 3 gross balance increased by $0.2 billion to $0.3 billion (31 December
2024: $0.1 billion) due to increases across two sovereign exposures.
Amortised cost and FVOCI 30.06.25 31.12.24
Gross ECL Net2 Gross ECL Net2
$million
$million $million
$million
$million $million
Stage 1 156,264 (29) 156,235 141,862 (23) 141,839
- Strong 152,430 (24) 152,406 138,353 (19) 138,334
- Satisfactory 3,834 (5) 3,829 3,509 (4) 3,505
Stage 2 1,059 (7) 1,052 1,614 (4) 1,610
- Strong 216 (2) 214 562 - 562
- Satisfactory 255 (3) 252 31 - 31
- High Risk 588 (2) 586 1,021 (4) 1,017
Stage 3 306 (6) 300 103 (2) 101
Gross balance¹ 157,629 (42) 157,587 143,579 (29) 143,550
1 Stage 3 gross includes $289 million (31 December 2024: $59 million)
originated credit-impaired debt securities with $6 million impairment (31
December 2024: $Nil)
2 FVOCI instruments are not presented net of ECL on the balance sheet.
While the presentation is on a net basis for the table, the total net
on-balance sheet amount is $157,617 million (31 December 2024: $143,562
million). Refer to the Analysis of financial instrument by stage table
- page 33 -
IFRS 9 ECL methodology (reviewed)
Refer to page 236 of the 2024 Annual Report for the 'Approach for determining
ECL', 'Application of lifetime ECL' and pages 244 to 246 for 'SICR',
'Assessment of credit-impaired financial assets' and 'Governance of PMAs and
application of expert credit judgement in respect of ECL'. There have been no
changes to the Group's approach in determining SICR compared to 31 December
2024.
Composition of credit impairment provisions (reviewed)
The table below summarises the key components of the Group's credit impairment
provision balances as at 30 June 2025 and 31 December 2024.
30.06.2025 31.12.2024
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total
$ million
$ million
$ million
$ million4
$ million
$ million
$ million
$ million
$ million4
$ million
Modelled ECL provisions 372 639 64 40 1,115 337 613 61 37 1,048
(base forecast)
Impact of multiple economic scenarios1 43 33 - 1 77 24 19 - - 43
Total ECL provisions before management judgements 415 672 64 41 1,192 361 632 61 37 1,091
Of which: Model performance (10) 7 - - (3) - 14 - - 14
post model adjustments
Judgemental post model adjustments2 - (11) - - (11) - (23) - - (23)
Management overlays3
- China commercial real estate 58 - - - 58 70 - - - 70
- Other 93 19 1 - 113 109 27 7 - 143
Total modelled provisions 566 680 65 41 1,352 540 636 68 37 1,281
Of which:
Stage 1 188 412 34 30 664 133 392 30 34 589
Stage 2 353 146 20 11 530 362 151 27 1 541
Stage 3 25 122 11 - 158 45 93 11 2 151
Stage 3 non-modelled provisions 3,337 677 - 65 4,079 3,267 665 - 54 3,986
Total credit impairment provisions 3,903 1,357 65 106 5,431 3,807 1,301 68 91 5,267
1 Includes upwards judgemental post-model adjustment of $47 million (31
December 2024: $28 million)
2 Excludes $47 million (31 December 2024: $28 million) upwards judgemental
post-model adjustment which is included in 'Impact of multiple economic
scenarios'
3 $29 million (31 December 2024: $32 million) is in stage 1, $128 million
(31 December 2024: $181 million) in stage 2 and $14 million (31 December 2024:
nil) in stage 3
4 Includes ECL on cash and balances at central banks, accrued income,
assets held for sale and other assets
Model performance post model adjustments (PMA)
As part of model monitoring and independent validation processes, where a
model's performance breaches the approved monitoring thresholds or validation
standards, an assessment is performed to determine whether a model performance
PMA is required to temporarily remediate the model issue. The process for the
determination of PMAs is set out in the 'Governance of PMAs and application of
expert credit judgement in respect of ECL' section on page 246 of the 2024
Annual Report.
As at 30 June 2025, model performance PMAs have been applied for five models
out of the total of 110 models. In aggregate, these PMAs reduce the Group's
impairment provisions by $3 million (less than 1 per cent of modelled
provisions) compared with a $14 million increase as at 31 December 2024. The
change from 31 December 2024 was primarily due to a new PMA in CIB to address
overprediction in the commercial banking portfolio.
In addition to these model performance PMAs, separate judgemental post model
and management adjustments have also been applied as set out below.
30.06.25 31.12.24
$ million
$ million
Model performance PMAs
Corporate & Investment Banking (10) -
Wealth & Retail Banking 7 14
Total model performance PMAs (3) 14
- page 34 -
Key assumptions and judgements in determining ECL
Incorporation of forward-looking information
The evolving economic environment is a key determinant of the ability of a
bank's clients to meet their obligations as they fall due. It is a fundamental
principle of IFRS 9 that the provisions banks hold against potential future
Credit Risk losses should depend, not just on the health of the economy today,
but should also take into account potential changes to the economic
environment. For example, if a bank was to anticipate a sharp slowdown in the
world economy over the coming year, it should hold more provisions today to
absorb the credit losses likely to occur in the near future.
To capture the effect of changes to the economic environment, the PDs and LGDs
used to calculate ECL incorporate forward-looking information in the form of
forecasts of the values of economic variables and asset prices that are likely
to have an effect on the repayment ability of the Group's clients.
The 'base forecast' of the economic variables and asset prices is based on
management's view of the five-year outlook, supported by projections from the
Group's in-house research team and outputs from a third-party model that
project specific economic variables and asset prices. The research team takes
consensus views into consideration, and senior management review projections
for some core country variables against consensus when forming their view of
the outlook. For the period beyond five years, management utilises the
in-house research view and third-party model outputs, which allow for a
reversion to long-term growth rates or norms. All projections are updated on a
quarterly basis.
Forecast of key macroeconomic variables underlying the ECL calculation and the
impact on non-linearity
In the Base Forecast, management's view of the most likely outcome - the pace
of growth of the world economy is expected to slow from 3.2 per cent in 2024
to 3.1 per cent in 2025. This compares to the average of 3.7 per cent growth
for the 10 years prior to COVID-19 (between 2010 and 2019). For many economies
2025 is a year of two halves as tariff front-running now gives way to
implementation. Front-loaded exports to the US ahead of higher tariffs
supported economic activity in H1 2025, leading to a record Q1 2025 US trade
deficit and stronger than expected growth in China. H2 2025 is likely to see
weaker economic momentum in both economies, as well as elevated recession
risks in Europe. Asia is expected to remain as the outperformer this year.
The global economy faces continued challenges due to ongoing trade policy
instability. US tariffs remain fluid as tariff negotiations continue,
elevating the uncertainty over the outlook for the rest of the year.
Geopolitical tensions and sovereign debt pressures also continue to pose
significant risks.
Whilst the quarterly Base Forecasts inform the Group's strategic plan, one key
requirement of IFRS 9 is that the assessment of provisions should consider
multiple future economic environments. For example, the global economy may
grow more quickly or more slowly than the Base Forecast, and these variations
would have different implications for the provisions that the Group should
hold today. As the negative impact of an economic downturn on credit losses
tends to be greater than the positive impact of an economic upturn, if the
Group sets provisions only on the ECL under the Base Forecast it might
maintain a level of provisions that does not appropriately capture the range
of potential outcomes. To address the inherent uncertainty in economic
forecast, and the property of skewness (or non-linearity), IFRS 9 requires
reported ECL to be a probability-weighted ECL, calculated over a range of
possible outcomes.
To assess the range of possible outcomes the Group simulates a set of 50
scenarios around the Base Forecast, calculates the ECL under each of them and
assigns an equal weight of 2 per cent to each scenario outcome. These
scenarios are generated by a Monte Carlo simulation, which addresses the
challenges of crafting many realistic alternative scenarios in the many
countries in which the Group operates by means of a model, which produces
these alternative scenarios whilst considering the degree of historical
uncertainty (or volatility) observed from Q1 1990 to Q1 2025 around economic
outcomes, the trends in each macroeconomic variable modelled and the
correlation in the unexplained movements around these trends. This naturally
means that each of the 50 scenarios do not have a specific narrative, although
collectively they explore a range of hypothetical alternative outcomes for the
global economy, including scenarios that turn out better than expected and
scenarios that amplify anticipated stresses. Further details on the impact of
mutiple economic scenarios (including any PMAs) are set out below.
The GDP graphs below illustrate the shape of the Base Forecast for key
footprint markets in relation to prior periods' actuals. The long-term growth
rates are based on the pace of economic expansion expected for 2030. The
tables below provide a summary of the Group's Base Forecast for these markets.
The peak/trough amounts show the highest and lowest points within the Base
Forecast.
- page 35 -
In 2025, China's GDP growth is projected to moderate slightly to 4.8 per cent
from 5.0 per cent in 2024, primarily due to persistent challenges in the
property sector and the anticipated impact of higher tariffs on export
momentum. Singapore's growth is expected to slow more significantly, reaching
1 per cent in 2025, down from 4.4 per cent last year, with weaker global
demand and trade uncertainty contributing to the slowdown. South Korea and
Hong Kong are also expected to experience limited growth in 2025 due to the
uncertain global environment, with projections of 0.8 per cent and 2.2 per
cent respectively. India's growth is anticipated to record 6.5 percent in
2025, up from 6.2 per cent in 2024, driven by consumption, particularly in
rural areas, supported by lower inflation and potentially higher crop yields.
Long-term growth = GDP growth expected for 2030
30.06.25
China Hong
Kong
GDP growth Unemployment 3-month House prices5 GDP growth Unemployment 3-month House prices
(YoY%)
%
interest rates
(YoY %)
(YoY %)
%
interest rates
(YoY %)
%
%
Base forecast1
2025 4.8 3.5 1.5 (4.9) 2.2 3.2 2.9 1.0
2026 4.3 3.4 1.3 (3.2) 2.5 3.3 3.6 7.6
2027 4.1 3.3 1.2 (0.9) 2.5 3.3 3.9 5.0
2028 3.5 3.3 1.2 0.9 2.2 3.3 4.1 3.4
2029 3.9 3.3 1.2 2.0 1.8 3.3 4.1 2.4
5-year average2 3.9 3.4 1.3 (0.4) 2.2 3.3 3.8 4.4
Quarterly peak 6.4 3.5 1.4 2.6 2.6 3.3 4.1 8.0
Quarterly trough 2.1 3.3 1.2 (4.7) 1.5 3.2 2.4 2.2
Monte Carlo
Low3 (6.3) 2.9 (0.9) (9.9) (3.7) 1.6 (0.5) (20.5)
High4 16.3 3.7 3.4 12.2 8.2 5.9 8.8 33.3
30.06.25
Singapore Kore
a
GDP growth (YoY%) Unemployment6 3-month House prices (YoY%) GDP growth (YoY%) Unemployment 3-month House prices (YoY %)
%
interest rates
%
interest rates
%
%
Base forecast1
2025 1.0 2.9 2.1 2.5 0.8 2.8 2.6 0.4
2026 1.9 3.0 2.0 2.3 2.3 2.9 2.2 2.2
2027 2.5 2.9 2.6 2.6 2.0 2.9 2.2 2.3
2028 2.7 2.9 3.1 2.7 2.0 2.9 2.2 2.1
2029 2.8 2.9 3.1 2.7 2.2 3.0 2.2 2.0
5-year average2 2.2 2.9 2.7 2.6 2.1 2.9 2.2 2.0
Quarterly peak 2.9 3.1 3.1 2.8 2.5 3.0 2.4 2.4
Quarterly trough (0.7) 2.9 1.9 1.8 0.9 2.8 2.2 0.5
Monte Carlo
Low3 (4.3) 1.5 (0.0) (18.6) (3.2) 1.5 (1.0) (6.5)
High4 8.5 4.5 6.2 22.9 7.1 5.1 6.0 9.3
30.06.25
Indi B
a r
e
n
t
C
r
u
d
e
$
p
b
GDP growth Unemployment7 3-month House prices
(YoY%)
%
interest rates
(YoY%)
%
Base forecast1
2025 6.5 NA 5.6 5.8 68.9
2026 6.5 NA 5.7 6.4 67.5
2027 6.5 NA 5.7 6.4 69.5
2028 6.4 NA 5.7 6.3 71.6
2029 6.3 NA 5.7 6.2 73.1
5-year average2 6.4 NA 5.7 6.3 70.4
Quarterly peak 7.1 NA 5.8 7.3 74.5
Quarterly trough 6.0 NA 5.5 5.2 66.1
Monte Carlo
Low3 2.9 N/A 1.1 1.1 29.0
High4 9.8 N/A 10.2 12.9 136.3
- page 36 -
31.12.24
China Hong
Kong
GDP growth Unemployment 3-month House prices5 GDP growth Unemployment 3-month House prices
(YoY%)
%
interest rates
(YoY%)
(YoY%)
%
interest rates
(YoY%)
%
%
5-year average2 4.1 3.3 1.7 (1.3) 2.2 3.1 2.4 3.8
Quarterly peak 5.3 3.5 1.9 2.3 3.5 3.2 2.9 6.8
Quarterly trough 3.2 3.1 1.6 (5.6) 1.5 3.0 2.1 (2.6)
Monte Carlo
Low3 (1.0) 2.8 0.6 (10.1) (1.8) 1.8 0.3 (13.1)
High4 9.3 3.7 3.0 7.8 5.8 5.1 5.3 22.2
31.12.24
Singapore Kore
a
GDP growth Unemployment6 3-month House prices GDP growth Unemployment 3-month House prices
(YoY%)
%
interest rates
(YoY%)
(YoY%)
%
interest rates
(YoY%)
%
%
5-year average2 2.3 2.7 2.0 2.4 2.0 2.8 2.9 2.8
Quarterly peak 3.4 2.8 2.4 3.2 2.2 2.9 3.2 4.8
Quarterly trough 0.6 2.7 1.6 (0.4) 1.5 2.8 2.9 1.9
Monte Carlo
Low3 (2.7) 2.0 0.3 (10.5) (1.3) 2.2 0.8 (4.3)
High4 7.0 3.6 3.9 17.5 5.2 3.5 5.7 9.8
31.12.24
Indi B
a r
e
n
t
c
r
u
d
e
$
p
b
GDP growth Unemployment 3-month House prices
(YoY%)
%
interest rates
(YoY%)
%
5-year average2 6.6 NA 6.0 6.4 76.2
Quarterly peak 7.1 NA 6.2 7.3 77.8
Quarterly trough 5.9 NA 6.0 6.0 74.8
Monte Carlo
Low3 3.2 NA 1.9 (0.1) 44.5
High4 10.0 NA 10.3 12.6 107.8
1 Data presented are those used in the calculation of ECL and presented as
average growth for the year. These may differ slightly to forecasts presented
elsewhere in this Half-Year Report as they are finalised before the period
end. The annual averages are calendar year where 2025 = Q1 2025 to Q4 2025.
2 5 year averages reported for 30.06.25 cover 20 quarters from Q3 2025 to
Q2 2030. They cover Q1 2025 to Q4 2029 for the numbers reported for the 2024
Annual report
3 Represents the 10th percentile in the range of economic scenarios used
to determine non-linearity
4 Represents the 90th percentile in the range of economic scenarios used
to determine non-linearity
5 A judgemental management adjustment is held in respect of the China
commercial real estate sector, as discussed below
6 Singapore unemployment rate covers the resident unemployment rate, which
refers to citizens and permanent residents
7 India unemployment is not available due to insufficient data
Impact of multiple economic scenarios
The final probability weighted ECL reported by the Group is a simple average
of the ECL for each of the 50 scenarios simulated using a Monte Carlo model.
The Monte Carlo approach has the advantage that it generates many alternative
scenarios that cover our global footprint. The range of scenarios is
restricted through the use of ceilings and floors applied to the underlying
macroeconomic variables, and these were redeveloped in the first half of 2025
to capture a broader range of outcomes.
Given continuing heightened levels of tariff and geopolitical uncertainty, a
$47 million (31 December 2024: $28 million) non-linearity PMA has been
applied, $24 million (31 December 2024: $13 million) for CIB and Central and
other items, and $23 million (31 December 2024: $15 million) for WRB.
The total amount of non-linearity has been estimated by assigning probability
weights of 55 per cent, 27 per cent and 18 per cent respectively to the Base
Forecast, 'Moderate Global Trade and Geopolitical Tensions', and 'Bank Capital
Stress Test' scenarios which are presented below and comparing this to the
unweighted Base Forecast ECL. At 31 December 2024, probability weights of 68
per cent, 22 per cent and 10 per cent respectively to the Base Forecast,
'Higher for Longer Commodities and Rates', and 'Global Trade and Geopolitical
Tensions' scenarios as disclosed in the 2024 Annual Report.
- page 37 -
The non-linearity PMA represents the difference between the probability
weighted ECL calculated using the three scenarios and the probability weighted
ECL calculated by the Monte Carlo model.
The total amount of non-linearity including the PMA is $77 million (31
December 2024: $43 million). The CIB and Central and other items portfolio
accounted for $44 million (31 December 2024: $24 million) of the calculated
non-linearity, with the remaining $33 million (31 December 2024: $19 million)
attributable to WRB portfolios.
The impact of multiple economic scenarios on total modelled ECL is set out in
the table below, together with the management overlay and other judgemental
adjustments.
Base forecast Multiple economic scenarios1 Management overlays and other judgemental adjustments Total
$million
$million
$million
modelled
ECL(2)
$million
Total expected credit loss at 30 June 2025 1,115 77 160 1,352
Total expected credit loss at 31 December 2024 1,048 43 190 1,281
1 Includes an upwards judgemental PMA of $47 million (31 December 2024: $28
million)
2 Total modelled ECL comprises stage 1 and stage 2 balances of $1,194
million (31 December 2024: $1,130 million) and $158 million (31 December 2024:
$151 million) of modelled ECL on stage 3 loans
The average ECL under multiple scenarios is 7 per cent (31 December 2024: 4
per cent) higher than the ECL calculated using only the most likely scenario
(the Base Forecast). Portfolios that are more sensitive to non-linearity
include those with greater leverage and/or a longer tenor, such as Project and
Shipping Finance portfolios. Other portfolios display minimal non-linearity
owing to limited responsiveness to macroeconomic impacts for structural
reasons, such as significant collateralisation as with the WRB mortgage
portfolios.
Judgemental management adjustments
As at 30 June 2025, the Group held judgemental adjustments for ECL as set out
in the table below. All of the judgemental adjustments have been determined
after taking account of the model performance PMAs reported on below. They are
reassessed quarterly and are reviewed and approved by the IFRS 9 Impairment
Committee (IIC) and will be released when no longer relevant.
30 June 2025 Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total
$million
$million
$million
$million
Mortgages Credit Cards Other Total
$million
$million
$million
$million
Judgemental post model adjustments 23 (1) 14 (1) 12 - 1 36
Judgemental management overlays:
- China CRE 58 - - - - - - 58
- Other 93 - 1 18 19 1 - 113
Total judgemental adjustments 174 (1) 15 17 31 1 1 207
Judgemental adjustments by stage:
Stage 1 36 - 9 8 17 1 1 55
Stage 2 138 (1) 6 9 14 - - 152
Stage 3 - - - - - - - -
31 December 2024
Judgemental post model adjustments 13 - 9 (17) (8) - - 5
Judgemental management overlays:
- China CRE 70 - - - - - - 70
- Other 109 - 5 22 27 7 - 143
Total judgemental adjustments 192 - 14 5 19 7 - 218
Judgemental adjustments by stage:
Stage 1 27 - 10 (11) (1) 4 - 30
Stage 2 165 - 5 25 30 3 - 198
Stage 3 - - (1) (9) (10) - - (10)
Judgemental PMAs
As at 30 June 2025, judgemental PMAs have been applied that increase ECL by a
net $36 million (31 December 2024: $5 million increase). $47 million (31
December 2024: $28 million) of the increase in ECL related to multiple
economic scenarios (see 'Impact of multiple economic scenarios' section). This
was partly offset by a reduction of ECL of $11 million for certain WRB models,
primarily to adjust for temporary factors impacting modelled outputs. These
will be released when these factors normalise.
- page 38 -
Judgemental management overlays
China CRE
The real estate market in China has been in a downturn since late 2021 with
continued over supply, developer liquidity issues and a lack of foreign
investment. The government has introduced a number of monetary and fiscal
stimuli during the period, including reducing down payment ratios, interest
rates, mortgage rates, and taxes as well as new policies permitting local
governments to purchase homes as affordable housing. However, demand still
remains muted with some small improvements in prices and volumes only visible
in first tier cities. Consumer confidence and continued support from the
government are key to reversing the declining trend and ensuring further
stabilisation in 2025.
The Group's loans and advances to China CRE clients was $1.9 billion at 30
June 2025 (31 December 2024: $1.9 billion). Heightened risk management
continues to be carried out, with a focus on managing upcoming maturities
through refinancing and/or repayment. No new financing transactions were
entered into during the period. Clients with exposure maturing within the next
12 months have been placed on purely precautionary or non-purely precautionary
early alert, where appropriate, for closer monitoring. Given the evolving
nature of the risks in the China CRE sector, a management overlay of $58
million (31 December 2024: $70 million) has been taken by estimating the
impact of further deterioration to exposures in this sector. The decrease from
31 December 2024 was primarily driven by repayments and utilisation due to
movement to stage 3.
Other
In CIB, additional overlays of $93 million (31 December 2024: $109 million)
have been taken, $35 million (31 December 2024: $58 million) of which is in
Hong Kong, with the remainder relating to Bangladesh and an immaterial amount
for climate risks. The overlay in Hong Kong reflects subdued economic activity
and increasing commercial property vacancy rates, which contributes to an
uncertain outlook that are not yet fully reflected in the credit grades and
modelled ECL. The risk of further impairment remains as a result of subdued
economic activity in the property sector and the related liquidity constraints
faced by counterparties as a result. The overlays reduction since 31 December
2024 was due to risks being partially manifested in the portfolio modelled
ECL. The overlay in Bangladesh reflects the political situation that has
contributed to an increasing level of uncertainty in the macroeconomic
outlook. The overlays for Hong Kong and Bangladesh have been determined by
estimating the impact of a deterioration to certain exposures in these
countries.
In WRB, overlays of $19 million (31 December 2024: $27 million) includes $14
million (31 December 2024: $21 million) in Korea to cover the risks relating
to the failure of two e-commerce payment platforms in 2024, and an immaterial
adjustment for climate risks and other items. The overlays reduction since 31
December 2024 was due to risks being partially manifested in the portfolio
modelled ECL, and overlay releases for bankruptcy trends in certain markets
previously held at 31 December 2024 are now covered by a separate judgemental
PMA.
Further details on the adjustment for Climate Risk are set out in Note 1 of
the 'Notes to the financial statements' section in the 2024 Annual Report.
Stage 3 assets
Credit-impaired assets managed by Stressed Asset Group (SAG) incorporate
forward-looking economic assumptions in respect of the recovery outcomes
identified and are assigned individual probability weightings per IFRS 9.
These assumptions are not based on a Monte Carlo simulation but are informed
by the Base Forecast.
Sensitivity of ECL calculation to macroeconomic variables
The ECL calculation relies on multiple variables and is inherently non-linear
and portfolio-dependent, which implies that no single analysis can fully
demonstrate the sensitivity of the ECL to changes in the macroeconomic
variables. The Group has conducted a series of analyses with the aim of
identifying the macroeconomic variables which might have the greatest impact
on the overall ECL. These encompassed single variable and multi-variable
exercises, using simple up/down variation and extracts from actual calculation
data, as well as bespoke scenario design assessments.
The primary conclusion of these exercises is that no individual macroeconomic
variable is materially influential. The Group believes this is plausible as
the number of variables used in the ECL calculation is large. This does not
mean that macroeconomic variables are uninfluential; rather, that the Group
believes that consideration of macroeconomics should involve whole scenarios,
as this aligns with the multi-variable nature of the calculation.
- page 39 -
The Group faces downside risks in the operating environment related to the
uncertainties surrounding the macroeconomic outlook. To explore this, a
sensitivity analysis of ECL was undertaken to explore the effect of slower
economic recoveries across the Group's footprint markets. Two downside
scenarios were considered in particular to explore the current uncertainties
over commodity prices. The 'Moderate Global Trade and Geopolitical Tensions'
(Moderate GTGT) scenario is a moderate downside scenario characterised by an
escalating trade war between the US and China and other economies. The second
Bank of England's 'Bank Capital Stress Test' (BCST) scenario is characterized
by a severe but plausible global aggregate supply shock leading to deep
recessions globally. It also features higher commodity prices, inflation and
interest rates.
Baseline Moderate GTGT BCST
Five year average Peak/Trough Five year average Peak/Trough Five year average Peak/Trough
China GDP 3.9 6.4/2.1 2.9 4.4/0.2 2.7 4.2/(1.7)
China unemployment 3.4 3.5/3.3 4.1 4.4/3.6 4.3 5.0/3.7
China property prices (0.4) 2.6/(4.7) 0.4 6.5/(11.4) (3.8) 11.1/(11.4)
Hong Kong GDP 2.2 2.6/1.5 0.6 1.5/(3.2) 0.1 2.7/(6.6)
Hong Kong unemployment 3.3 3.3/3.2 4.8 5.3/3.6 6.1 7.6/3.7
Hong Kong property prices 4.4 8.0/2.2 1.7 13.4/(12.8) (3.2) 7.9/(10.5)
US GDP 1.9 2.2/1.5 1.0 2.0/(0.3) 0.2 1.4/(3.5)
Singapore GDP 2.2 2.9/(0.7) 0.9 2.8/(2.9) 0.6 3.8/(6.7)
India GDP 6.4 7.1/6.0 5.5 6.6/3.8 4.8 6.3/0.8
Crude oil 70.4 74.5/66.1 62.5 70.1/55.4 110.4 146.2/74.5
Period covered from Q3 2025 to Q2 2030.
Base (GDP, YoY%) Moderate GTGT (GDP, YoY%) Difference from Base
2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029
China 3.5 5.4 3.2 3.9 3.8 1.8 2.4 2.7 3.9 3.8 (1.6) (3.0) (0.6) (0.0) 0.0
Hong Kong 2.3 2.5 2.4 2.0 1.6 (2.2) 0.7 1.5 1.5 1.4 (4.5) (1.9) (0.9) (0.5) (0.2)
US 1.7 2.1 1.8 1.9 1.8 0.6 (0.1) 1.1 1.7 1.9 (1.1) (2.2) (0.8) (0.1) 0.1
Singapore 0.4 2.4 2.6 2.7 2.8 (2.2) (0.4) 1.9 2.6 2.4 (2.6) (2.8) (0.7) (0.1) (0.4)
India 6.4 6.6 6.5 6.4 6.3 5.1 4.4 5.8 6.1 6.2 (1.3) (2.2) (0.7) (0.3) (0.1)
Each year is from Q3 to Q2. For example 2025 is from Q3 2025 to Q2 2026.
Base (GDP, YoY%) BCST (GDP, YoY%) Difference from Base
2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029
China 3.5 5.4 3.2 3.9 3.8 0.6 0.6 4.0 4.1 3.9 (2.8) (4.7) 0.8 0.2 0.1
Hong Kong 2.3 2.5 2.4 2.0 1.6 (3.2) (3.3) 2.5 2.4 2.4 (5.5) (5.9) 0.0 0.4 0.8
US 1.7 2.1 1.8 1.9 1.8 (1.0) (1.9) 1.1 1.3 1.3 (2.8) (4.0) (0.7) (0.5) (0.6)
Singapore 0.4 2.4 2.6 2.7 2.8 (4.7) (3.1) 3.6 3.6 3.6 (5.1) (5.5) 1.0 0.8 0.7
India 6.4 6.6 6.5 6.4 6.3 3.4 2.1 6.1 6.2 6.2 (3.0) (4.5) (0.4) (0.2) (0.1)
Each year is from Q3 to Q2. For example 2025 is from Q3 2025 to Q2 2026.
The total modelled stage 1 and 2 ECL provisions (including both on and
off-balance sheet instruments) would be approximately $107 million higher
under the 'Moderate GTGT' scenario, and $268 million higher under the 'BCST'
scenario than the baseline ECL provisions (which excluded the impact of
multiple economic scenarios and judgemental management adjustments which may
already capture some of the risks in these scenarios). Stage 2 exposures as a
proportion of stage 1 and 2 exposures would increase from 2.9 per cent in the
base case to 3.3 per cent and 3.8 per cent respectively under the 'Moderate
GTGT' and 'BCST' scenarios. This includes the impact of exposures transferring
to stage 2 from stage 1 but does not consider an increase in stage 3 defaults.
Under both scenarios, the majority of the increase in ECL in CIB came from the
main CRE, Project Finance and Corporate portfolios. For the main corporate
portfolios, ECL would increase by $29 million and $14 million in the 'Moderate
GTGT' and 'BCST' scenarios respectively, and the proportion of stage 2
exposures would increase from 4.6 per cent in the base case to 5.1 per cent
and 5.7 per cent respectively. Although the 'BCST' is a more severe scenario,
the impact on the main corporate portfolio is moderated compared to the
'Moderate GTGT' scenario as the scenario includes an increase in commodity
prices, which some of the models view positively.
- page 40 -
For WRB, most of the increase in ECL came from the unsecured retail
portfolios, particularly from the credit cards portfolios in Hong Kong and
Singapore. Under the 'Moderate GTGT' and 'BCST' scenarios, credit card ECL
would increase by $13 million and $47 million respectively and the proportion
of stage 2 credit card exposures would increase from 2.5 per cent in the base
scenario to 3.1 per cent and 4.3 per cent under 'Moderate GTGT' and 'BCST'
respectively. Additionally, under the 'BCST' scenario, Korea personal loans,
Private Bank, and retail mortgages ECL would increase by $11 million, $86
million, and 27 million respectively. The proportion of stage 2 mortgages
would increase from 1.2 per cent in the base case to 1.4 per cent and 2.4 per
cent respectively, with the Hong Kong, Singapore, and Korea portfolios most
impacted.
There was no material change in modelled stage 3 provisions as these primarily
relate to unsecured WRB exposures for which the LGD is not sensitive to
changes in the macroeconomic forecasts. There is also no material change for
non-modelled stage 3 exposures as these are more sensitive to client-specific
factors than to alternative macroeconomic scenarios.
The actual outcome of any scenario may be materially different due to, among
other factors, the effect of management actions to mitigate potential
increases in risk and changes in the underlying portfolio.
Gross as reported1 ECL as reported2 ECL Base case ECL Moderate GTGT ECL BCST
$million
$million
$million
$million
$million
Stage 1 modelled
Corporate & Investment Banking 389,444 151 136 152 155
Wealth & Retail Banking 186,055 395 379 388 428
Ventures 11,179 33 33 33 33
Central & other items 174,458 30 29 30 32
Total excluding management judgements 761,136 609 577 603 648
Stage 2 modelled
Corporate & Investment Banking 17,297 215 187 249 291
Wealth & Retail Banking 2,224 132 115 134 208
Ventures 54 20 20 20 20
Central & other items 1,081 8 8 8 8
Total excluding management judgements 20,656 375 330 411 527
Total Stage 1 and 2 modelled
Corporate & Investment Banking 406,741 366 323 401 446
Wealth & Retail Banking 188,279 527 494 522 636
Ventures 11,233 53 53 53 53
Central & other items 175,539 38 37 38 40
Total excluding management judgements 781,792 984 907 1,014 1,175
Stage 3 exposures excluding management judgements 6,952 4,179
Other financial assets3 128,832 61
ECL from management judgements 207
Total financial assets reported at 30 June 2025 917,576 5,431
1 Gross balances includes both on- and off-balance sheet instruments;
allocation between stage 1 and 2 will differ by scenario
2 Includes ECL for both on- and off-balance sheet instruments
3 Includes cash and balances at central banks, accrued income, other
financial assets, and assets held for sale
- page 41 -
Traded Risk
Market Risk (reviewed)
Market Risk is the potential for fair value loss due to adverse moves in
financial markets. The Group's exposure to Market Risk arises predominantly
from the following sources:
• Trading book:
- The Group provides clients with access to markets, facilitation of which
entails the Group taking moderate Market Risk positions. All trading teams
support client activity. There are no proprietary trading teams. Hence, income
earned from Market Risk-related activities is primarily driven by the volume
of client activity.
• Non-trading book:
- Treasury is required to hold a liquid assets buffer, much of which is held
in high-quality marketable debt securities.
- The Group underwrites and sells down loans, and invests in select
investment grade debt securities with no trading intent.
- The Group has capital invested and related income streams denominated in
currencies other than US dollars. To the extent that these income streams are
not hedged, the Group is subject to Structural Foreign Exchange Risk, which is
reflected in reserves.
A summary of our current policies and practices regarding Market Risk
management is provided in the 'Principal Risks' section of the 2024 Annual
Report (page 201).
The primary categories of Market Risk for the Group are:
• Interest Rate Risk: arising from changes in yield curves and implied
volatilities.
• Foreign Exchange Risk: arising from changes in currency exchange rates and
implied volatilities.
• Commodity Risk: arising from changes in commodity prices and implied
volatilities.
• Credit Spread Risk: arising from changes in the price of debt instruments
and credit-linked derivatives and driven by factors other than the level of
risk-free interest rates.
• Equity Risk: arising from changes in the prices of equities and implied
volatilities.
Market Risk movements
Value at Risk (VaR) allows the Group to manage Market Risk across the trading
book and most of the fair valued non-trading books.
There have been a number of market events in H1 2025 that led to increased
market volatility. Q1 2025 was dominated by fears over US tariffs, with the
S&P 500 exhibiting its worst underperformance versus emerging markets
since 2017. US yields fell over the quarter on recession concerns, while
yields in other major bond markets increased, notably Germany on unprecedented
fiscal stimulus, driven by security fears associated with US isolationism.
This uncertainty drove gold prices higher and risk assets lower, especially US
high-yield credit. Despite recession concerns, oil prices remained supported
by tension in the Middle East. In Q2 2025, market volatility increased driven
by the imposition of tariffs on Liberation Day and then subsequent suspensions
and re-impositions. Additional volatility was driven by military hostilities
in India-Pakistan and within the Middle East, and subsequent ceasefires. The
market consequences included the worst H1 2025 performance of the US dollar
against foreign exchanges since 2002, while the S&P 500 rose in Q2 2025,
closing near its all-time high. The price of crude oil, having spiked in June
2025 on fears over potential closure of the Strait of Hormuz, closed lower in
Q2 2025 on global trade uncertainty; in contrast, gold continued to rise over
the quarter.
Trading VaR
The average level of trading VaR in H1 2025 was $27.9 million, 35 per cent
higher than H2 2024 ($20.7 million) and 30 per cent higher than H1 2024 ($21.5
million). The increase in trading average VaR was driven by an increase in
market volatility combined with a VaR model enhancement to make the model more
responsive to such an upturn in market volatility.
- page 42 -
Daily Value at Risk (VaR at 97.5%, one day) (reviewed)
Trading1 6 months ended 30.06.25 6 months ended 31.12.24 6 months ended 30.06.24
Average High Low Half Year Average High Low Half Year Average High Low Half Year
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Interest Rate Risk 13.9 18.3 9.8 13.0 12.1 17.2 7.0 12.0 13.2 22.0 9.1 10.6
Credit Spread Risk 8.9 13.0 5.4 12.2 6.1 7.4 5.1 5.4 7.2 9.6 4.8 6.0
Foreign Exchange Risk 7.5 12.3 4.9 6.5 9.7 15.0 5.0 7.4 8.9 14.5 5.2 9.1
Commodity Risk 13.0 21.7 2.9 5.1 4.5 7.6 2.7 4.3 5.2 10.0 2.4 5.7
Equity Risk - - - - - - - - - - - -
Diversification effect2 (15.4) NA NA (13.8) (11.7) NA NA (8.3) (13.0) NA NA (15.9)
Total2 27.9 34.9 18.9 23.0 20.7 30.3 13.2 20.8 21.5 33.1 13.0 15.5
1 The trading book for Market Risk is defined in the 'Trading Book Capital
Requirements Regulation (CRR)' part of the PRA Handbook which transposes the
requirements of CRR Part 3 Title I Chapter 3 as onshored in the UK. This
restricts the positions permitted in the trading book.
2 The total VaR is non-additive across risk types due to diversification
effects, which is measured as the difference between the sum of the VaR by
individual risk type or business and the combined total VaR. As the maximum
and minimum occur on different days for different risk types or businesses, it
is not meaningful to calculate a portfolio diversification benefit for these
measures
Risks not in VaR
In H1 2025, the main market risks not reflected in VaR were:
• Basis risks for which the historical market price data is limited and is
therefore proxied, giving rise to potential proxy basis risk that is not
captured in VaR
• Potential depeg risk from currencies currently pegged or managed, where
the historical one-year VaR observation period may not reflect the possibility
of a change in the currency regime or a sudden depegging
Additional capital is set aside to cover such 'risks not in VaR'.
Backtesting
In H1 2025, there were no regulatory backtesting negative exceptions at Group
level. In the one-year period to 30 June 2025, there have been no Group-level
backtesting exceptions.
An enhancement to the VaR model was implemented from January 2025 to increase
the model's responsiveness to abrupt upturns in market volatility.
Counterparty Credit Risk
Counterparty Credit Risk is the potential for loss in the event of the default
of a derivative counterparty, after taking into account the value of eligible
collaterals and risk mitigation techniques. The Group's counterparty credit
exposures are included in the Credit Risk section.
Derivative financial instruments Credit Risk mitigation
The Group enters into master netting agreements, which in the event of default
result in a single amount owed by or to the counterparty through netting the
sum of the positive and negative mark-to-market values of applicable
derivative transactions.
In addition, the Group enters into credit support annexes (CSAs) with
counterparties where collateral is deemed a necessary or desirable mitigant to
the exposure. Cash collateral includes collateral called under a variation
margin process from counterparties if total uncollateralised mark-to-market
exposure exceeds the threshold and minimum transfer amount specified in the
CSA. With certain counterparties, the CSA is reciprocal and requires us to
post collateral if the overall mark-to- market values of positions are in the
counterparty's favour and exceed an agreed threshold.
Liquidity and Funding Risk
Liquidity and Funding Risk is the risk that the Group may not have sufficient
stable or diverse sources of funding to meet its obligations as they fall due.
The Group's Liquidity and Funding Risk framework requires each country to
ensure that it operates within predefined liquidity limits and remains in
compliance with Group liquidity policies and practices, as well as local
regulatory requirements.
The Group achieves this through a combination of setting Risk Appetite and
associated limits, policy formation, risk measurement and monitoring,
prudential and internal stress testing, governance and review.
- page 43 -
Throughout 2025, the Group retained a robust liquidity position across key
metrics. The Group continues to focus on improving the quality and
diversification of its funding mix and remains committed to supporting its
clients.
Liquidity and Funding Risk metrics
The Group continually monitors key liquidity metrics, both on a country basis
and consolidated across the Group.
The following liquidity and funding Board Risk Appetite metrics define the
maximum amount and type of risk that the Group is willing to assume in pursuit
of its strategy: liquidity coverage ratio (LCR), internal liquidity stress,
recovery capacity and net stable funding ratio (NSFR). In addition to the
Board Risk Appetite, there are further limits that apply at Group and country
level such as external wholesale borrowing (WBE) and cross-currency limits.
Liquidity coverage ratio (LCR)
The LCR is a regulatory requirement set to ensure the Group has sufficient
unencumbered high-quality liquid assets to meet its liquidity needs in a
30-calendar-day liquidity stress scenario.
The Group monitors and reports its liquidity positions under the Liquidity
Coverage Ratio per PRA rulebook and has maintained its LCR above the
prudential requirement. The Group maintained robust liquidity ratios
throughout 2025.
At the reporting date, the Group LCR was 146 per cent (31 December 2024: 138
per cent), with a surplus to both Board-approved Risk Appetite and regulatory
requirements.
Adequate liquidity was held across our footprint to meet all local prudential
LCR requirements where applicable.
The Liquidity buffer reported is after deductions made to reflect the impact
of limitations in the transferability of entity liquidity around the Group.
This resulted in a deduction of $55 billion to the liquidity buffer (LCR HQLA)
as at 30 June 2025.
30.06.25 31.12.24
$million
$million
Liquidity buffer 187,496 170,306
Total net cash outflows 128,151 123,226
Liquidity coverage ratio 146% 138%
Stressed coverage
The Group intends to maintain a prudent and sustainable funding and liquidity
position, in all countries and currencies, such that it can withstand a severe
but plausible liquidity stress.
Our approach to managing liquidity and funding is reflected in the Board-level
Risk Appetite Statement which includes the following:
"The Group should have sufficient stable and diverse sources of funding to
meet its contractual and contingent obligations as they fall due."
The Group's Internal Liquidity Adequacy Assessment Process ('ILAAP') stress
testing framework covers the following stress scenarios:
• Standard Chartered-specific - captures the liquidity impact from an
idiosyncratic event affecting Standard Chartered only with the rest of the
market assumed to be operating normally.
• Market-wide - captures the liquidity impact from a market-wide crisis
affecting all participants in a country, region or globally.
• Combined - assumes both Standard Chartered-specific and market-wide events
affect the Group simultaneously and hence is the most severe scenario.
All scenarios include, but are not limited to, modelled outflows for retail
and wholesale funding, off-balance sheet funding risk, cross-currency funding
risk, intraday risk, franchise risk and risks associated with a deterioration
of a firm's credit rating. Concentration risk approach captures single name
and industry concentration. Internal stress testing results show that, as at
30 June 2025, Group and all countries were able to survive for a period of
time with positive surpluses as defined under each scenario. The results take
into account currency convertibility and portability constraints while
calculating the liquidity surplus at Group level. Standard Chartered Bank's
credit ratings as at 30 June 2025 were A+ with stable outlook (Fitch), A+ with
stable outlook (S&P) and A1 with positive outlook (Moody's). As of 30 June
2025, the estimated contractual outflow of a three-notch long-term ratings
downgrade is $0.8 billion.
- page 44 -
Advances-to-deposits ratio
This is defined as the ratio of total loans and advances to customers relative
to total customer deposits. An advances-to-deposits ratio below 100 per cent
demonstrates that customer deposits exceed customer loans as a result of the
emphasis placed on generating a high level of funding from customers. The
Group's advances-to-deposits ratio has improved by 2.3 per cent as customer
deposit growth exceeds growth in customer loans and advances. Deposits from
customers as at 30 June 2025 are $542,348 million (31 December 2024: $486,261
million).
30.06.25 31.12.24
$million
$million
Total loans and advances to customers1,2 276,422 259,269
Total customer accounts3 542,348 486,261
Advances-to-deposits ratio 51.0% 53.3%
1 Excludes reverse repurchase agreement and other similar secured lending
of $4,189 million (31 December 2024:$9,660 million) and includes loans and
advances to customers held at fair value through profit and loss of $8,119
million (31 December 2024: $7,084 million)
2 Loans and advances to customers for the purpose of the
advances-to-deposits ratio excludes $14,239 million (31 December 2024: $19,187
million) of approved balances held with central banks, confirmed as repayable
at the point of stress
3 Includes customer accounts held at fair value through profit or loss of
$24,958 million (31 December 2024: $21,772 million)
Net stable funding ratio (NSFR)
The NSFR is a PRA regulatory requirement that stipulates institutions to
maintain a stable funding profile in relation to an assumed duration of their
assets and off-balance sheet activities over a one-year horizon. It is the
ratio between the amount of available stable funding (ASF) and the amount of
required stable funding (RSF). ASF factors are applied to balance sheet
liabilities and capital, based on their perceived stability and the amount of
stable funding they provide. Likewise, RSF factors are applied to assets and
off-balance sheet exposures according to the amount of stable funding they
require. The regulatory requirements for NSFR are to maintain a ratio of at
least 100 per cent. The average ratio for the past four quarters is 137 per
cent.
Liquidity pool
The liquidity value of the Group's LCR eligible liquidity pool at the
reporting date was $187 billion. The figures in the table below account for
haircuts, currency convertibility and portability constraints per PRA rules
for transfer restrictions (amounting to $55 billion as at 30 June 2025), and
therefore are not directly comparable with the consolidated balance sheet. A
liquidity pool is held to offset stress outflows as defined in the LCR per PRA
rulebook.
30.06.25 31.12.24
$million
$million
Level 1 securities
Cash and balances at central banks 86,388 76,094
Central banks, governments/public sector entities 89,238 74,182
Multilateral development banks and international organisations 7,191 14,386
Other 460 343
Total Level 1 securities 183,277 165,005
Level 2 A securities 3,703 4,367
Level 2 B securities 516 934
Total LCR eligible assets 187,496 170,306
Liquidity analysis of the Group's balance sheet
Contractual maturity of assets and liabilities
The following table presents assets and liabilities by maturity groupings
based on the remaining period to the contractual maturity date as at the
balance sheet date on a discounted basis. Contractual maturities do not
necessarily reflect actual repayments or cashflows. Within the tables below,
cash and balances with central banks, interbank placements and investment
securities that are fair valued through other comprehensive income are used by
the Group principally for liquidity management purposes. As at the reporting
date, assets remain predominantly short-dated, with 58 per cent maturing in
less than one year.
- page 45 -
30.06.25
One month Between one month and three months Between three months and Between six months and nine months Between nine months and one year Between Between More than Total
or less
$million
six months
$million
$million
one year and two years
two years and five years
five years
$million
$million
$million
$million
$million
and undated
$million
Assets
Cash and balances at 69,253 - - - - - - 10,912 80,165
central banks
Derivative financial instruments 15,694 10,181 9,599 6,638 3,475 5,548 7,647 5,443 64,225
Loans and advances to banks1,2 19,868 17,585 11,524 7,348 8,116 8,993 4,115 1,795 79,344
Loans and advances to customers1,2 84,528 37,657 25,261 15,231 15,646 39,059 32,349 100,887 350,618
Investment securities1 16,805 26,083 18,853 22,846 15,126 37,676 48,352 73,525 259,266
Other assets1 20,454 46,949 1,359 416 806 39 66 10,229 80,318
Total assets 226,602 138,455 66,596 52,479 43,169 91,315 92,529 202,791 913,936
Liabilities
Deposits by banks1,3 30,337 2,304 1,404 192 1,179 4,322 2,548 2 42,288
Customer accounts1,4 423,214 38,415 30,685 15,380 12,331 8,893 49,889 3,326 582,133
Derivative financial instruments 17,450 14,035 10,334 7,033 3,562 5,165 7,512 4,787 69,878
Senior debt5 820 2,267 1,401 1,211 2,096 6,630 20,185 20,737 55,347
Other debt securities in issue1 2,438 5,181 9,051 5,469 2,962 1,090 769 778 27,738
Other liabilities 16,290 42,430 2,222 849 1,960 1,859 1,636 5,858 73,104
Subordinated liabilities and other borrowed funds - 63 9 144 45 1,422 736 6,359 8,778
Total liabilities 490,549 104,695 55,106 30,278 24,135 29,381 83,275 41,847 859,266
Net liquidity gap (263,947) 33,760 11,490 22,201 19,034 61,934 9,254 160,944 54,670
31.12.24
Assets
Cash and balances at 55,646 - - - - - - 7,801 63,447
central banks
Derivative financial instruments 22,939 15,556 12,217 7,265 4,328 7,067 7,448 4,652 81,472
Loans and advances to banks1,2 22,381 21,722 10,588 6,771 4,986 8,407 3,715 1,990 80,560
Loans and advances to customers1,2 65,688 58,765 25,739 15,479 16,192 31,240 31,766 94,688 339,557
Investment securities1 13,016 25,886 21,546 14,789 14,688 32,815 41,423 62,418 226,581
Other assets1 12,601 32,130 1,333 381 931 71 64 10,560 58,071
Total assets 192,271 154,059 71,423 44,685 41,125 79,600 84,416 182,109 849,688
Liabilities
Deposits by banks1,3 24,293 2,345 1,621 848 571 4,342 1,939 3 35,962
Customer accounts1,4 379,926 37,502 25,863 10,152 10,123 9,695 47,367 2,635 523,263
Derivative financial instruments 21,680 17,115 11,773 7,018 4,353 6,660 8,144 5,321 82,064
Senior debt5 609 1,755 4,074 2,132 932 7,926 18,784 17,886 54,098
Other debt securities in issue1 2,734 2,663 6,550 4,535 5,015 851 1,206 688 24,242
Other liabilities 12,173 43,574 3,020 1,441 155 4,494 682 2,854 68,393
Subordinated liabilities and other borrowed funds - 64 23 180 13 359 1,978 7,765 10,382
Total liabilities 441,415 105,018 52,924 26,306 21,162 34,327 80,100 37,152 798,404
Net liquidity gap (249,144) 49,041 18,499 18,379 19,963 45,273 4,316 144,957 51,284
1 Loans and advances, investment securities, deposits by banks, customer
accounts and debt securities in issue include financial instruments held at
fair value through profit or loss, see Note 13 Financial instruments
2 Loans and advances include reverse repurchase agreements and other
similar secured lending of $98.8 billion (31 December 2024: $98.8 billion)
3 Deposits by banks include repurchase agreements and other similar
secured borrowing of $9.4 billion (31 December 2024: $8.7 billion)
4 Customer accounts include repurchase agreements and other similar
secured borrowing of $39.8 billion (31 December 2024: $37.0 billion)
5 Senior debt maturity profiles are based upon contractual maturity, which
may be later than call options over the debt held by the Group
- page 46 -
Behavioural maturity of financial assets and liabilities
The cashflows presented in the previous section reflect the cashflows that
will be contractually payable over the residual maturity of the instruments.
However, contractual maturities do not necessarily reflect the timing of
actual repayments or cashflow. In practice, certain assets and liabilities
behave differently from their contractual terms, especially for short-term
customer accounts, credit card balances and overdrafts, which extend to a
longer period than their contractual maturity.
On the other hand, mortgage balances tend to have a shorter repayment period
than their contractual maturity date. Expected customer behaviour is assessed
and managed on a country basis using qualitative and quantitative techniques,
including analysis of observed customer behaviour over time.
Maturity of financial liabilities on an undiscounted basis
The following table analyses the contractual cashflows payable for the Group's
financial liabilities by remaining contractual maturities on an undiscounted
basis. The financial liability balances in the table below will not agree with
the balances reported in the consolidated balance sheet as the table
incorporates all contractual cashflows, on an undiscounted basis, relating to
both principal and interest payments. Derivatives not treated as hedging
derivatives are included in the 'On demand' time bucket and not by contractual
maturity.
Within the 'More than five years and undated' maturity band are undated
financial liabilities, the majority of which relate to subordinated debt, on
which interest payments are not included as this information would not be
meaningful, given the instruments are undated. Interest payments on these
instruments are included within the relevant maturities up to five years.
30.06.25
One month Between one month and three months Between Between six months and nine months Between nine months and one year Between Between More than Total
or less
$million
three months and six months
$million
$million
one year and two years
two years and five years
five years
$million
$million
$million
$million
$million
and undated
$million
Deposits by banks 30,417 2,320 1,422 197 1,202 4,341 2,603 2 42,504
Customer accounts 423,779 38,700 31,103 15,716 12,640 9,353 51,116 4,824 587,231
Derivative financial instruments1 68,339 51 114 74 51 195 389 665 69,878
Debt securities in issue 3,620 7,712 10,810 7,204 5,520 9,351 24,852 24,614 93,683
Subordinated liabilities and other borrowed funds 19 131 12 150 51 1,536 976 12,141 15,016
Other liabilities 15,572 42,796 2,129 813 1,934 1,813 1,630 7,830 74,517
Total liabilities 541,746 91,710 45,590 24,154 21,398 26,589 81,566 50,076 882,829
31.12.24
Deposits by banks 24,303 2,360 1,660 862 589 4,347 1,939 4 36,064
Customer accounts 380,377 37,790 26,277 10,384 10,438 9,937 47,642 3,396 526,241
Derivative financial instruments1 80,055 13 12 10 3 216 592 1,163 82,064
Debt securities in issue 3,622 4,551 11,007 7,056 6,319 10,261 23,184 21,337 87,337
Subordinated liabilities and other borrowed funds 19 134 46 206 14 392 2,345 13,800 16,956
Other liabilities 10,421 44,933 2,894 1,408 152 4,433 682 4,802 69,725
Total liabilities 498,797 89,781 41,896 19,926 17,515 29,586 76,384 44,502 818,387
1 Derivatives are on a discounted basis
Interest Rate Risk in the Banking Book
The following table provides the estimated impact to a hypothetical base case
projection of the Group's earnings under the following scenarios:
• A 50 basis point parallel interest rate shock (up and down) to the current
market-implied path of rates, across all yield curves
• A 100 basis point parallel interest rate shock (up and down) to the
current market-implied path of rates, across all yield curves
These interest rate shock scenarios assume all other economic variables remain
constant. The sensitivities shown represent the estimated change to a
hypothetical base case projected net interest income (NII), plus the change in
interest rate implied income and expense from FX swaps used to manage banking
book currency positions, under the different interest rate shock scenarios.
- page 47 -
The base case projected NII is based on the current market-implied path of
rates and forward rate expectations. The NII sensitivities below stress this
base case by a further 50 or 100bps. Actual observed interest rate changes
will likely differ from market expectation. Accordingly, the shocked NII
sensitivity does not represent a forecast of the Group's net interest income.
The interest rate sensitivities are indicative stress tests and based on
simplified scenarios, estimating the aggregate impact of an unanticipated,
instantaneous parallel shock across all yield curves over a one-year horizon.
The assessment assumes that the size and mix of the balance sheet remain
constant and that there are no specific management actions in response to the
change in rates. No assumptions are made in relation to the impact on credit
spreads in a changing rate environment.
Significant modelling and behavioural assumptions are made regarding scenario
simplification, market competition, pass-through rates, asset and liability
re-pricing tenors, and price flooring. In particular, the assumption that
interest rates of all currencies and maturities shift by the same amount
concurrently, and that no actions are taken to mitigate the impacts arising
from this are considered unlikely. Reported sensitivities will vary over time
due to a number of factors including changes in balance sheet composition,
market conditions, customer behaviour and risk management strategy. Therefore,
while the NII sensitivities are a relevant measure of the Group's interest
rate exposure, they should not be considered an income or profit forecast.
Estimated one-year impact to earnings from a parallel shift in yield curves at 30.06.25
the beginning of the period of:
USD bloc HKD bloc SGD bloc GBP bloc CNY bloc2 INR bloc EUR bloc2 Other Total
$million
$million
$million
$million
$million
$million
$million
currency bloc1
$million
$million
+ 50 basis points 30 40 20 20 - 20 - 40 170
- 50 basis points (40) (60) (30) (20) (20) (20) (10) (70) (270)
+ 100 basis points 50 70 30 30 10 40 10 80 320
- 100 basis points (100) (130) (60) (40) (40) (40) (20) (140) (570)
31.12.24
+ 50 basis points 20 30 10 10 20 30 10 80 210
- 50 basis points (40) (30) (20) (10) (30) (30) (20) (90) (270)
+ 100 basis points 30 60 20 20 30 40 30 160 390
- 100 basis points (90) (50) (40) (30) (50) (40) (40) (210) (550)
1 The largest exposures within the Other currency bloc are JPY and TWD
2 The +50bps CNY and EUR sensitivities are positive, but round to zero
As at 30 June 2025, the Group estimates the one-year impact of an
instantaneous, parallel increase across all yield curves of 50 basis points to
increase projected NII by $170 million. The equivalent impact from a parallel
decrease of 50 basis points would result in a reduction in projected NII of
$270 million. The Group estimates the one-year impact of an instantaneous,
parallel increase across all yield curves of 100 basis points to increase
projected NII by $320 million. The equivalent impact from a parallel decrease
of 100 basis points would result in a reduction in projected NII of $570
million.
The benefit from rising interest rates is primarily from reinvesting at higher
yields and from assets re-pricing faster and to a greater extent than
deposits. NII sensitivity in falling rate scenarios has increased versus 31
December 2024, due to an increase in balance sheet size, with assets repricing
faster than liabilities, and due to lower HIBOR rates. This impact was
partially offset by an increase in programmatic hedging.
Over the course of H1 2025 the notional of interest rate swaps and
HTC-accounted bond portfolios used to reduce NII sensitivity through the cycle
increased from $64 billion to $75 billion. As at June 2025, the portfolios had
a weighted average maturity of 2.7 years, which reflects the behaviouralised
lives of the rate-insensitive deposit and equity balances that they hedge, and
a yield of 3.6 per cent. In addition, $18 billion of fixed rate commercial
assets provide structural offset to the structural liabilities.
Non-Trading VaR
The average level of non-trading VaR in H1 2025 was $47.3 million, 37 per cent
higher than H2 2024 ($34.5
million) and 40 per cent higher than H1 2024 ($33.9 million). The increase
in non-trading average VaR was driven by an increase in market volatility
combined with a VaR model enhancement to make the model more responsive to
such an upturn in market volatility, an increase in the interest rate risk of
the Treasury portfolio and larger US agency bonds inventory in the CIB
non-trading portfolio.
- page 48 -
Daily Value at Risk (VaR at 97.5%, one day) (reviewed)
Non-trading1 6 months ended 30.06.25 6 months ended 31.12.24 6 months ended 30.06.24
Average High Low Half Year Average High Low Half Year Average High Low Half Year
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Interest Rate Risk 40.7 64.6 23.8 56.6 25.3 32.9 17.4 32.5 30.8 35.5 26.4 32.4
Credit Spread Risk 20.8 29.0 13.9 24.5 16.8 17.7 13.8 15.7 17.7 24.8 10.0 17.8
Foreign Exchange Risk - - - - - - - - - - - -
Commodity Risk 2.2 4.8 0.8 1.1 1.3 1.6 0.8 0.8 1.3 1.8 0.6 1.5
Equity Risk - - - - 0.4 0.8 - - 0.4 0.9 - 0.1
Diversification effect2 (16.4) NA NA (19.8) (9.3) NA NA (10.2) (16.3) NA NA (11.0)
Total2 47.3 66.6 32.3 62.3 34.5 41.0 28.6 38.8 33.9 44.1 29.2 40.8
1 The non-trading book VaR does not include the loan underwriting business
2 The total VaR is non-additive across risk types due to diversification
effects, which is measured as the difference between the sum of the VaR by
individual risk type or
business and the combined total VaR. As the maximum and minimum occur on
different days for different risk types or businesses, it is not meaningful to
calculate a portfolio diversification benefit for these measures
Operational and Technology Risk
Operational and Technology Risk profile
Operational and Technology risks remain elevated in areas such as Change
Mismanagement Risk, Operational Resilience and Third-Party Risk Management,
which are being addressed through ongoing control enhancement programmes. The
Group also prioritises management of Systems Health/Technology risk,
Transaction Processing and Regulatory Compliance risks.
Additionally, the Group continues to monitor and manage Operational and
Technology risks associated with external factors such as geopolitical issues,
cyber-attacks threats and the misuse of Artificial Intelligence. This enables
the Group to keep pace with new business developments, whilst ensuring that
its risk and control frameworks evolve accordingly. The Group continues to
enhance its risk management capabilities to understand the full spectrum of
risks in the operating environment, strengthen its defences and improve its
overall resilience.
Other principal risks
The losses arising from operational failures for other principal and
integrated risks are reported as operational losses. Operational losses do not
include operational risk-related credit impairments.
- page 49 -
Capital review
The Capital review provides an analysis of the Group's capital and leverage
position, and requirements.
Capital summary
The Group's capital, leverage and minimum requirements for own funds and
eligible liabilities (MREL) position is managed within the Board-approved risk
appetite. The Group is well capitalised with low leverage and high levels of
loss-absorbing capacity.
30.06.25 31.12.24
CET1 capital 14.3% 14.2%
Tier 1 capital 16.9% 16.9%
Total capital 20.5% 21.5%
Leverage ratio 4.7% 4.8%
MREL ratio 33.3% 34.2%
Risk-weighted assets (RWA) $million 259,684 247,065
The Group's capital, leverage and MREL positions were all above current
requirements and Board-approved risk appetite. The Group's CET1 capital
increased 11 basis points to 14.3 percent of RWA since FY2024. Profits,
movements in FVOCI, FX translation reserves and decrease in regulatory
deductions were partly offset by RWA growth and distributions (including
ordinary share buybacks of $1.5 billion during the period).
As at 30 June 2025 the Group's Pillar 2A was 3.7 percent of RWA, of which at
least 2.1 per cent must be held in CET1 capital. The Group's minimum CET1
capital requirement was 10.5 per cent at 30 June 2025.
The Group CET1 capital ratio at 30 June 2025 reflects the share buybacks of
$1.5 billion announced during the period. The CET1 capital ratio also includes
an accrual for the FY 2025 dividend. The Board has recommended an interim
dividend for H1 2025 of $288 million or 12.3 cents per share representing a
third of the total 2024 dividend. In addition, the Board has announced a
further share buyback of $1.3 billion, the impact of this will reduce the
Group's CET1 capital by around 50 basis points in the third quarter of 2025.
The Group expects to manage CET1 capital dynamically within our 13-14 per cent
target range, in support of our aim of delivering future sustainable
shareholder distributions.
The Group's MREL leverage requirement as at H1 2025 was equivalent 28.1 per
cent of RWA. This is composed of a minimum requirement of 24.3 per cent of RWA
and the Group's combined buffer (comprising the capital conservation buffer,
the G-SII buffer and the countercyclical buffer). The Group's MREL ratio was
33.3 per cent of RWA and 9.3 per cent of leverage exposure at H1 2025.
During the period, the Group successfully raised $6.5 billion of MREL eligible
securities from its holding company, Standard Chartered PLC. Issuance include
$1.0 billion of Additional Tier 1 and $5.5 billion of callable senior debt.
The Group is a G-SII, with a 1.0 per cent G-SII CET1 capital buffer. The
Standard Chartered PLC G-SII disclosure is published at:
sc.com/en/investors/financial-results.
- page 50 -
Capital base1 (reviewed)
30.06.25 31.12.24
$million
$million
CET1 capital instruments and reserves
Capital instruments and the related share premium accounts 5,154 5,201
Of which: share premium accounts 3,989 3,989
Retained earnings 26,692 24,950
Accumulated other comprehensive income (and other reserves) 10,099 8,724
Non-controlling interests (amount allowed in consolidated CET1) 234 235
Independently reviewed interim and year-end profits 3,341 4,072
Foreseeable dividends (570) (923)
CET1 capital before regulatory adjustments 44,950 42,259
CET1 regulatory adjustments
Additional value adjustments (prudential valuation adjustments) (660) (624)
Intangible assets (net of related tax liability) (5,995) (5,696)
Deferred tax assets that rely on future profitability (excludes those arising (18) (31)
from temporary differences)
Fair value reserves related to net losses on cash flow hedges (378) (4)
Deduction of amounts resulting from the calculation of excess expected loss (617) (702)
Net gains on liabilities at fair value resulting from changes in own credit 275 278
risk
Defined-benefit pension fund assets (159) (149)
Fair value gains arising from the institution's own credit risk related to (103) (97)
derivative liabilities
Exposure amounts which could qualify for risk weighting of 1250% (35) (44)
Total regulatory adjustments to CET1 (7,690) (7,069)
CET1 capital 37,260 35,190
Additional Tier 1 capital (AT1) instruments 6,537 6,502
AT1 regulatory adjustments (20) (20)
Tier 1 capital 43,777 41,672
Tier 2 capital instruments 9,534 11,449
Tier 2 regulatory adjustments (30) (30)
Tier 2 capital 9,504 11,419
Total capital 53,281 53,091
Total risk-weighted assets (unreviewed) 259,684 247,065
1 Capital base is prepared on the regulatory scope of consolidation
- page 51 -
Movement in total capital (reviewed)
6 months 6 months
ended
ended
30.06.25
31.12.24
$million
$million
CET1 at 1 January/1 July 35,190 35,418
Ordinary shares issued in the period and share premium - -
Share buyback (1,500) (1,500)
Profit for the period/year 3,341 1,663
Foreseeable dividends deducted from CET1 (570) (445)
Difference between dividends paid and foreseeable dividends 9 (477)
Movement in goodwill and other intangible assets (299) 310
Foreign currency translation differences 753 (15)
Non-controlling interests (1) (1)
Movement in eligible other comprehensive income 307 268
Deferred tax assets that rely on future profitability 13 13
Decrease/(increase) in excess expected loss 85 (49)
Additional value adjustments (prudential valuation adjustment) (36) 54
IFRS 9 transitional impact on regulatory reserves including day one - 2
Exposure amounts which could qualify for risk weighting 9 (5)
Fair value gains arising from the institution's own Credit Risk related to (6) (7)
derivative liabilities
Others (35) (39)
CET1 at 30 June/31 December 37,260 35,190
AT1 at 1 January/1 July 6,482 6,484
Net issuances 30 23
Foreign currency translation difference 5 (25)
AT1 at 30 June/31 December 6,517 6,482
Tier 2 capital at 1 January/1 July 11,419 11,667
Regulatory amortisation (124) 367
Net (redemptions) (2,175) (517)
Foreign currency translation difference 365 (100)
Tier 2 ineligible minority interest 11 (1)
Others 8 3
Tier 2 capital at 30 June/31 December 9,504 11,419
Total capital at 30 June/31 December 53,281 53,091
The main movements in capital in the period were:
• CET1 capital increased by $2.0 billion as retained profits of $3.3
billion, movement in FVOCI of $0.2 billion, foreign currency translation
impact of $0.8 billion which were partly offset by share buybacks of $1.5
billion, distributions paid and foreseeable of $0.6 billion and an increase in
regulatory deductions and other movements of $0.2 billion.
• AT1 capital remained constant as the issuance of $1.0 billion securities
is offset by the redemption of another $1.0 billion securities.
• Tier 2 capital decreased by $1.9 billion due to the redemption of $2.2
billion of Tier 2 during the year and regulatory amortisation partly offset by
foreign currency translation impact.
- page 52 -
Risk-weighted assets by business
30.06.25
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 128,605 22,555 30,969 182,129
Wealth & Retail Banking 47,027 10,583 - 57,610
Ventures 3,031 239 18 3,288
Central & other items 12,685 (799) 4,772 16,657
Total risk-weighted assets 191,348 32,578 35,758 259,684
31.12.241
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 124,635 19,987 24,781 169,403
Wealth & Retail Banking 47,764 9,523 - 57,287
Ventures 2,243 142 21 2,406
Central & other items 14,661 (173) 3,481 17,969
Total risk-weighted assets 189,303 29,479 28,283 247,065
Movement in risk-weighted assets
Credit risk(1) Operational risk Market risk Total risk
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total
$million
$million
$million
$million
$million
At 1 January 20241 116,621 50,771 1,885 22,146 191,423 27,861 24,867 244,151
Assets growth & mix 5,580 (2,449) 96 (3,855) (629) - - (629)
Asset quality (2,031) (155) - (488) (2,674) - - (2,674)
Risk-weighted assets efficiencies - - - - - - - -
Model Updates 462 818 - - 1,280 - - 1,280
Methodology and policy changes - - - - - - (1,300) (1,300)
Acquisitions and disposals - - - - - - - -
Foreign currency translation (1,727) (1,067) - (367) (3,162) - - (3,162)
Other, Including non-credit risk movements - - - (1,234) (1,234) 1,618 3,876 4,260
At 30 June 20241 118,905 47,917 1,981 16,201 185,004 29,479 27,443 241,926
Assets growth & mix 6,037 1,959 262 (1,321) 6,937 - - 6,937
Asset quality (441) (161) - 104 (498) - - (498)
Risk-weighted assets efficiencies - - - - - - - -
Model Updates 1,158 (819) - - 339 - (400) (61)
Methodology and policy changes 38 39 - - 77 - - 77
Acquisitions and disposals - - - - - - - -
Foreign currency translation (1,061) (330) - (324) (1,715) - - (1,715)
Other, Including non-credit risk movements - (841) - - (841) - 1,240 399
At 31 December 20241 124,635 47,764 2,243 14,661 189,303 29,479 28,283 247,065
Assets growth & mix 847 (2,424) 788 (2,897) (3,686) - - (3,686)
Asset quality 1,776 (96) - 556 2,236 - - 2,236
Risk-weighted assets efficiencies - - - - - - - -
Model Updates (1,655) 232 - - (1,423) - 51 (1,372)
Methodology and policy changes - - - - - - - -
Acquisitions and disposals (14) (92) - (12) (118) - - (118)
Foreign currency translation 3,016 1,643 - 377 5,036 - - 5,036
Other, Including non-credit risk movements - - - - - 3,099 7,424 10,523
At 30 June 2025 128,605 47,027 3,031 12,685 191,348 32,578 35,758 259,684
1 RWA balances are now presented to reflect the RNS on Presentation of
Financial Information issued on 2 April 2025. Prior periods have been
re-presented and there is no change in total RWA
- page 53 -
Movements in risk-weighted assets
RWA increased by $12.6 billion, or 5.1 per cent from 31 December 2024 to
$259.7 billion. This was due to increase in Credit Risk RWA of $2.0 billion,
Market Risk RWA of $7.5 billion and Operational Risk RWA of $3.1 billion.
Corporate & Investment Banking
Credit Risk RWA increased by $3.9 billion, or 3.2 per cent from 31 December
2024 to $128.6 billion due to:
• $3.0 billion increase from foreign currency translation
• $1.8 billion increase mainly due to deterioration in asset quality from
sovereign downgrades and other client grade moves
• $0.8 billion increase from changes in asset growth and mix, of which:
- $5.3 billion increase from asset growth
- $4.5 billion decrease from optimisation actions
• $1.7 billion decrease from industry-wide regulatory changes to align IRB
model performance and from alpha factor used in the Internal Model Method
(IMM)
Wealth & Retail Banking
Credit Risk RWA decreased by $0.7 billion, or 1.5 per cent from 31 December
2024 to $47.0 billion mainly due to:
• $2.4 billion decrease from changes in asset growth & mix
• $0.1 billion decrease mainly due to improvement in asset quality, mainly
in Asia
• $0.1 billion decrease from exit of business in Gambia
• $1.6 billion increase from foreign currency translation
• $0.2 billion increase from industry-wide regulatory changes to align IRB
model performance.
Ventures
Ventures is comprised of Mox Bank Limited, Trust Bank and SC Ventures. Credit
Risk RWA increased by $0.8 billion, or 35.1 per cent from 31 December 2024 to
$3.0 billion from asset balance growth, mainly from SC Ventures.
Central & other items
Central & other items RWA mainly relate to the Treasury Market's liquidity
portfolio, equity investments and current and deferred tax assets. Credit Risk
RWA decreased by $2.0 billion, or 13.5 per cent from 31 December 2024 to $12.7
billion mainly due to:
• $2.9 billion decrease from changes in asset growth & mix
• $0.6 billion increase due to deterioration in asset quality, mainly from
sovereign downgrades and other client grade moves
• $0.4 billion increase from foreign currency translation
Market Risk
Total Market Risk RWA increased by $7.5 billion, or 26.4 per cent from 31
December 2024 to $35.8 billion due to:
• $2.6 billion increase in Standardised Approach (SA) Specific Interest Rate
Risk RWA primarily due to increase in the Trading Book government bond
portfolio
• $2.7 billion increase in Internal Models Approach (IMA) stressed VaR RWA
due to increased IMA positions attributable mainly to interest rate exposures
• $1.3 billion RWA increase from Structural FX risk
• $0.9 billion RWA increase from IMA add-ons for risks not in VaR
Operational Risk
Operational Risk RWA increased by $3.1 billion, or 10.5 per cent from 31
December 2024 to $32.6 billion, mainly due to an increase in average income as
measured over a rolling three-year time horizon.
- page 54 -
Leverage ratio
The Group's leverage ratio, which excludes qualifying claims on central banks,
was 4.7 per cent at H1 2025, which was above the current minimum requirement
of 3.7 per cent. The leverage ratio was 11 basis points lower than FY2024.
Leverage exposure increased by $64.9 billion from an increase in Other Assets
of $78.6 billion, an increase in Derivatives including cash collateral of $3.2
billion, Off-balance sheet items of $2.3 billion, securities financing
transaction add-on of $1.8 billion partly offset by an increase in claims on
central banks of $19.2 billion, regulatory consolidation adjustments and
unsettled regular way trades of $1.0 billion, and an increase in asset amounts
deducted in determining Tier 1 capital (Leverage) of $0.8 billion. Tier 1
capital increased by $2.1 billion as CET1 capital increased by $2.0 billion
following profits for the period of $3.3 billion, partly offset by the
announcement of a share buyback of $1.5 billion, and an AT1 issuance of $1.0
billion offset by a call announcement of $1.0 billion AT1 securities.
Leverage ratio
30.06.25 31.12.24
$million
$million
Tier 1 capital (end point) 43,777 41,672
Derivative financial instruments 64,225 81,472
Derivative cash collateral 13,895 11,046
Securities financing transactions (SFTs) 98,772 98,801
Loans and advances and other assets 737,044 658,369
Total on-balance sheet assets 913,936 849,688
Regulatory consolidation adjustments1 (96,465) (76,197)
Derivatives adjustments
Derivatives netting (48,236) (63,934)
Adjustments to cash collateral (12,032) (10,169)
Net written credit protection 2,757 2,075
Potential future exposure on derivatives 54,443 51,323
Total derivatives adjustments (3,068) (20,705)
Counterparty risk leverage exposure measure for SFTs 5,959 4,198
Off-balance sheet items 120,878 118,607
Regulatory deductions from Tier 1 capital (8,006) (7,247)
Total exposure measure excluding claims on central banks 933,234 868,344
Leverage ratio excluding claims on central banks (%) 4.7 4.8
Average leverage exposure measure excluding claims on central banks 946,944 894,296
Average leverage ratio excluding claims on central banks (%) 4.6 4.7
Countercyclical leverage ratio buffer (%) 0.1 0.1
G-SII additional leverage ratio buffer (%) 0.4 0.4
1 Includes adjustment for qualifying central bank claims and unsettled
regular way trades
- page 55 -
Statement of directors' responsibilities
We confirm that to the best of our knowledge:
• The condensed consolidated interim financial statements have been prepared
in accordance with UK-adopted IAS 34 Interim Financial Reporting and IAS 34 as
adopted by the EU.
• The interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the six months ended
30 June 2025 and their impact on the condensed consolidated interim financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year.
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place during the six months ended
30 June 2025 that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could have
materially affected the financial position or performance of the entity during
that period.
By order of the Board
Diego De Giorgi
Group Chief Financial Officer
31 July 2025
Standard Chartered PLC Board of Directors
Group Chair Executive Directors Non-Executive Directors
Maria Ramos
Bill
Winters
Shirish Apte
Diego De
Giorgi
Jackie Hunt
Diane Jurgens
Robin Lawther
Lincoln Leong
Phil Rivett
David Tang
Linda Yueh
- page 56 -
Independent review report to Standard Chartered PLC
Conclusion
We have been engaged by Standard Chartered PLC (the 'Company' or, together
with its subsidiaries, the 'Group') to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the condensed consolidated interim income statement,
the condensed consolidated interim statement of comprehensive income, the
condensed consolidated interim balance sheet, the condensed consolidated
interim statement of changes in equity, the condensed consolidated interim
cash flow statement, the related notes 1 to 30, and the risk and capital
disclosures marked as 'reviewed' (together the 'condensed consolidated interim
financial statements'). We have read the other information contained in the
half yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed consolidated interim financial statements in the
half-yearly financial report for the six months ended 30 June 2025 are not
prepared, in all material respects, in accordance with United Kingdom (UK)
adopted International Accounting Standard 34 (IAS 34), IAS 34 as adopted by
the European Union (EU), and the Disclosure Guidance and Transparency Rules
(DTR) of the UK's Financial Conduct Authority (FCA).
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' (ISRE) issued by the Financial
Reporting Council (FRC). A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with UK adopted international accounting standards and
international financial reporting standard as adopted by the EU. The condensed
set of financial statements included in this half-yearly financial report has
been prepared in accordance with UK adopted IAS 34 and IAS 34 as adopted by
the EU, and the DTR of the UK's FCA.
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with UK adopted IAS 34 and IAS 34 as adopted by the EU, and the
DTR of the UK's FCA.
In preparing the half-yearly financial report, the directors are responsible
for assessing the 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 company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
- page 57 -
Use of our report
This report is made solely to the company in accordance with guidance
contained in ISRE 2410 (UK) 'Review of Interim Financial Information Performed
by the Independent Auditor of the Entity' issued by the FRC. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company, for our work, for this report, or for the conclusions
we have formed.
Ernst & Young LLP
London
31 July 2025
- page 58 -
Condensed consolidated interim income statement
For the six months ended 30 June 2025
Notes 6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Interest income 12,485 14,194
Interest expense (9,441) (11,019)
Net interest income 3 3,044 3,175
Fees and commission income 2,627 2,363
Fees and commission expense (495) (442)
Net fee and commission income 4 2,132 1,921
Net trading income 5 5,438 4,749
Other operating income 6 292 (54)
Operating income 10,906 9,791
Staff costs (4,393) (4,336)
Premises costs (175) (177)
General administrative expenses (1,135) (1,027)
Depreciation and amortisation (544) (516)
Operating expenses 7 (6,247) (6,056)
Operating profit before impairment losses and taxation 4,659 3,735
Credit impairment 8 (336) (240)
Goodwill, property, plant and equipment and other impairment 9 (19) (147)
Profit from associates and joint ventures 19 79 144
Profit before taxation 4,383 3,492
Taxation 10 (1,057) (1,123)
Profit for the period 3,326 2,369
Profit attributable to:
Non-controlling interests 17 (9)
Parent company shareholders 3,309 2,378
Profit for the period 3,326 2,369
cents cents
Earnings per share:
Basic earnings per ordinary share 12 129.1 83.3
Diluted earnings per ordinary share 12 125.5 81.3
The notes form an integral part of these financial statements.
- page 59 -
Condensed consolidated interim statement of comprehensive income
For the six months ended 30 June 2025
Notes 6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Profit for the period 3,326 2,369
Other comprehensive income/(loss)
Items that will not be reclassified to income statement: 124 (265)
Own credit losses on financial liabilities designated at fair value through (7) (410)
profit or loss
Equity instruments at fair value through other comprehensive income/(loss) 122 (25)
Actuarial gains on retirement benefit obligations 5 31
Revaluation (deficit)/surplus(1) (3) 15
Taxation relating to components of other comprehensive income 7 124
Items that may be reclassified subsequently to income statement: 1,293 (649)
Exchange differences on translation of foreign operations:
Net gains/(losses) taken to equity 824 (1,017)
Net (losses)/gains on net investment hedges (76) 377
Share of other comprehensive (loss)/income from associates and joint ventures (30) 9
Debt instruments at fair value through other comprehensive income:
Net valuation gains taken to equity 245 56
Reclassified to income statement (9) 90
Net impact of expected credit gains/(losses) 9 (19)
Cash flow hedges:
Net movements in cash flow hedge reserve 451 (171)
Taxation relating to components of other comprehensive income/(loss) (121) 26
Other comprehensive income/(loss) for the period, net of taxation 1,417 (914)
Total comprehensive income for the period 4,743 1,455
Total comprehensive income attributable to:
Non-controlling interests 42 (16)
Parent company shareholders 4,701 1,471
Total comprehensive income for the period 4,743 1,455
1 Revaluation (deficit)/surplus on reclassification of building to
investment property measured at fair value
- page 60 -
Condensed consolidated interim balance sheet
As at 30 June 2025
Notes 30.06.25 31.12.24
$million
$million
Assets
Cash and balances at central banks 80,165 63,447
Financial assets held at fair value through profit or loss 13 201,523 177,517
Derivative financial instruments 13,14 64,225 81,472
Loans and advances to banks 13 42,386 43,593
Loans and advances to customers 13 286,731 281,032
Investment securities 13 158,588 144,556
Other assets 18 65,429 43,468
Current tax assets 572 663
Prepayments and accrued income 3,070 3,207
Interests in associates and joint ventures 19 1,405 1,020
Goodwill and intangible assets 16 6,091 5,791
Property, plant and equipment 17 2,506 2,425
Deferred tax assets 10 399 414
Retirement benefit schemes in surplus 165 151
Assets classified as held for sale 20 681 932
Total assets 913,936 849,688
Liabilities
Deposits by banks 13 30,883 25,400
Customer accounts 13 517,390 464,489
Repurchase agreements and other similar secured borrowing 13,15 5,250 12,132
Financial liabilities held at fair value through profit or loss 13 99,551 85,462
Derivative financial instruments 13,14 69,878 82,064
Debt securities in issue 13 70,088 64,609
Other liabilities 21 48,638 44,681
Current tax liabilities 967 726
Accruals and deferred income 6,286 6,896
Subordinated liabilities and other borrowed funds 13,24 8,778 10,382
Deferred tax liabilities 10 715 567
Provisions for liabilities and charges 345 349
Retirement benefit schemes in deficit 282 266
Liabilities included in disposal groups held for sale 20 215 381
Total liabilities 859,266 798,404
Equity
Share capital and share premium account 25 6,648 6,695
Other reserves 10,099 8,724
Retained earnings 29,983 28,969
Total parent company shareholders' equity 46,730 44,388
Other equity instruments 25 7,500 6,502
Total equity excluding non-controlling interests 54,230 50,890
Non-controlling interests 440 394
Total equity 54,670 51,284
Total equity and liabilities 913,936 849,688
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 31 July 2025 and signed on its behalf by:
Diego De Giorgi
Group Chief Financial Officer
- page 61 -
Condensed consolidated interim statement of changes in equity
For the six months ended 30 June 2025
Ordinary share capital and share premium account Preference share capital and share premium account Capital and merger reserves1 Own credit adjustment reserve Fair value through other compre-hensive income reserve - debt Fair value through other compre-hensive income reserve - equity Cash flow hedge reserve Translation reserve Retained earnings Parent company share-holders' equity Other equity instru-ments Non-controlling interests Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
As at 1 January 2024 5,321 1,494 17,453 100 (690) 330 91 (8,113) 28,459 44,445 5,512 396 50,353
Profit for the period - - - - - - - - 2,378 2,378 - (9) 2,369
Other comprehensive (loss)/income7 - - - (360) 137 (81)¹¹ (147) (644) 1882,12 (907) - (7) (914)
Distributions - - - - - - - - - - - (25) (25)
Other equity instruments issued, net of expenses - - - - - - - - - - 9928 - 992
Treasury shares net movement - - - - - - - - 29 29 - - 29
Share option expense, net of taxation - - - - - - - - 148 148 - - 148
Dividends on ordinary shares - - - - - - - - (551) (551) - - (551)
Dividends on preference shares and - - - - - - - - (209) (209) - - (209)
AT1 securities
Share buyback3 (57) - 57 - - - - - (1,000) (1,000) - - (1,000)
Other movements - - - - 7 - - 134⁴ (61)⁹ 80 - 55(5) 135
As at 30 June 2024 5,264 1,494 17,510 (260) (546) 249 (56) (8,623) 29,381 44,413 6,504 410 51,327
Profit for the period - - - - - - - - 1,672 1,672 - 1 1,673
Other comprehensive (loss)/income7 - - - (17) 305 55(13) 60 (91) 39(2,14) 351 - (7) 344
Distributions - - - - - - - - - - - (18) (18)
Other equity instruments issued, - - - - - - - - - - 5768 - 576
net of expenses
Redemption of other equity instruments - - - - - - - - - - (553)10 - (553)
Treasury shares net movement - - - - - - - - (197) (197) - - (197)
Share option expense, net of taxation - - - - - - - - 121 121 - - 121
Dividends on ordinary shares - - - - - - - - (229) (229) - - (229)
Dividends on preference shares and - - - - - - - - (248) (248) - - (248)
AT1 securities
Share buyback6 (63) - 63 - - - - - (1,500) (1,500) - - (1,500)
Other movements - - - (1) - - - 764 (70)⁹ 5 (25)10 8(5) (12)
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
1 First half year ended 30 June 2024 includes capital reserve of $5
million, capital redemption reserve of $394 million and merger reserve of
$17,111 million. Further movement of $63 million in capital redemption reserve
during half year ended 31 December 2024
2 Comprises actuarial gain, net of taxation on Group defined benefit
schemes
3 On 23 February 2024, the Group announced the buyback programme for a
share buyback of its ordinary shares of $0.50 each. Nominal value of share
purchases was $57 million, the total consideration paid was $1,000 million and
the buyback completed on 25 June 2024. The total number of shares purchased
was 113,266,516, representing 4.25 per cent of the ordinary shares in issue at
the beginning of the programme. The nominal value of the shares was
transferred from the share capital to the capital redemption reserve account
4 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
5 Movements during first half year ended 30 June 2024 includes
non-controlling interest pertaining to Mox Bank Limited ($8 million) and Trust
Bank Singapore Limited ($47 million). Further movement in non-controlling
interest from Mox Bank Limited ($6 million) and Trust Bank Singapore Limited
($8 million) partly offset by SCB Angola S.A. ($6 million) during half year
ended 31 December 2024
6 On 30 July 2024, the Group announced the buyback programme for a $1,500
million share buyback of its ordinary shares of $0.50 each. As at December
2024, nominal value of share purchases was $63 million with the total number
of shares purchased of 126,262,414 and the total consideration was $1,355
million. The buyback programme was completed on 30 January 2025 with a
further 11,300,128 shares purchased in 2025, representing 0.44 per cent of
shares in issue at the beginning of the programme. The nominal value of the
shares was transferred from the share capital to the capital redemption
reserve account
7 All the amounts are net of tax
8 Includes $992 million and $576 million (SGD 750 million) fixed rate
resetting perpetual subordinated contingent convertible AT1 securities issued
by Standard Chartered PLC (refer note 25)
9 Movement in 2024 mainly includes movements related to Ghana
hyperinflation
10 Relates to redemption of AT1 securities of SGD 750 million ($553
million) and realised translation loss ($25 million) reported in other
movements
11 Includes $147 million gain on sale of equity investment transferred
to retained earnings partly offset by $76 million reversal of deferred tax
liability
12 Includes $147 million gain on sale of equity investment in other
comprehensive income reserve transferred to retained earnings partly offset by
$13 million capital gain tax
13 Includes $72 million mark-to-market gain on equity instrument
partly offset by $27 million gain on sale of equity investment transferred to
retained earnings
14 Includes $27 million gain on sale of equity investment in other
comprehensive income reserve transferred to retained earnings
- page 62 -
Condensed consolidated interim statement of changes in equity
For the six months ended 30 June 2025 continued
Ordinary share capital and share premium account Preference share capital and share premium account Capital and merger reserves15 Own credit adjustment reserve Fair value through other compre-hensive income reserve - debt Fair value through other compre-hensive income reserve - equity Cash flow hedge reserve Translation reserve Retained earnings Parent company share-holders' equity Other equity instru-ments Non-controlling interests Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
As at 1 January 2025 5,201 1,494 17,573 (278) (241) 304 4 (8,638) 28,969 44,388 6,502 394 51,284
Profit for the period - - - - - - - - 3,309 3,309 - 17 3,326
Other comprehensive income7 - - - 3 171 52(20) 374 718 74(2,20) 1,392 - 25 1,417
Distributions - - - - - - - - - - - (35) (35)
Other equity instruments issued, - - - - - - - - - - 994(19) - 994
net of expenses
Treasury shares net movement - - - - - - - - (76) (76) - - (76)
Share option expense, net of taxation - - - - - - - - 139 139 - - 139
Dividends on ordinary shares - - - - - - - - (670) (670) - - (670)
Dividends on preference shares and - - - - - - - - (244) (244) - - (244)
AT1 securities
Share buyback(6,16) (47) - 47 - - - - - (1,500) (1,500) - - (1,500)
Other movements - - - - (25) - - 35(17) (18)(9) (8) 4 39(18) 35
As at 30 June 2025 5,154 1,494 17,620 (275) (95) 356 378 (7,885) 29,983 46,730 7,500 440 54,670
15 Includes capital reserve of $5 million, capital redemption reserve
of $504 million and merger reserve of $17,111 million
16 On 21 February 2025, the Group announced the buyback programme for
a $1,500 million share buyback of its ordinary shares of $0.50 each. As at 30
June 2025, the total number of shares purchased of 82,248,452 representing
3.41 per cent of the ordinary shares in issue at the beginning of the
programme, for total consideration of $1,222 million, out of which $72 million
was paid in July 2025, and a further $278 million relating to irrevocable
obligation to buy back shares under the buyback programme has been recognised.
The nominal value of the shares was transferred from the share capital to the
capital redemption reserve account
17 Includes realisation of translation adjustment loss from sale of
Standard Chartered Bank Gambia Limited ($8 million) and Standard Chartered
Research and Technology India Private Limited ($3 million) transferred to
other operating income
18 Movement primarily from non-controlling interest pertaining to Mox
Bank Limited ($12 million), Trust Bank Singapore Limited ($7 million), Furaha
Holdings Limited ($3 million), Standard Chartered Research and Technology
India Private Limited ($12 million), Century Leader Limited ($6 million)
offset by Standard Chartered Bank Gambia Limited ($1 million)
19 Includes $994 million fixed rate resetting perpetual subordinated
contingent convertible AT1 securities issued by Standard Chartered PLC (refer
note 25)
20 Includes $68 million gain on sale of equity investment in other
comprehensive income reserve transferred to retained earnings
Note 25 includes a description of each reserve.
The notes form an integral part of these financial statements.
- page 63 -
Condensed consolidated interim cash flow statement
For the six months ended 30 June 2025
Notes 6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Cash flows from operating activities:
Profit before taxation 4,383 3,492
Adjustments for non-cash items and other adjustments included within income 30 689 1,730
statement
Change in operating assets 30 (28,293) (41,582)
Change in operating liabilities 30 50,180 20,466
Contributions to defined benefit schemes (28) (19)
UK and overseas taxes paid (700) (793)
Net cash from/(used in) operating activities 26,231 (16,706)
Cash flows from investing activities:
Internally generated capitalised software 16 (451) (474)
Disposal of internally generated capitalised software 16 11 5
Purchase of property, plant and equipment (125) (76)
Disposal of property, plant and equipment 9 31
Acquisition of investment associates, and joint ventures, net of cash acquired (97) (4)
Disposal of investment in subsidiaries, associates and joint ventures, net of 15 41
cash acquired
Dividends received from associates and joint ventures 19 45 -
Purchase of investment securities (106,044) (120,307)
Disposal and maturity of investment securities 97,706 125,925
Net cash (used in)/from investing activities (8,931) 5,141
Cash flows from financing activities:
Treasury share purchase (123) -
Treasury share sale 47 29
Cancellation of shares through share buyback (1,150) (1,000)
Premises and equipment lease liability principal payment (107) (105)
Issue of Additional Tier 1 capital, net of expenses 994 992
Interest paid on subordinated liabilities 30 (247) (252)
Repayment of subordinated liabilities 30 (2,175) (1,000)
Proceeds from issue of senior debts 30 7,953 7,698
Repayment of senior debts 30 (7,040) (7,191)
Interest paid on senior debts 30 (1,678) (548)
Net cash inflow from Non-controlling interest 24 47
Distributions and dividends paid to non-controlling interests, preference (279) (234)
shareholders and
AT1 securities
Dividends paid to ordinary shareholders (670) (551)
Net cash used in financing activities (4,451) (2,115)
Net increase/(decrease) in cash and cash equivalents 12,849 (13,680)
Cash and cash equivalents at beginning of the period 89,928 107,635
Effect of exchange rate movements on cash and cash equivalents 2,474 (1,740)
Cash and cash equivalents at end of the period(1) 105,251 92,215
1 Comprises cash and balances at central banks $80,165 million (30 June
2024: $64,086 million), treasury bills and other eligible bills $9,005 million
(30 June 2024: $3,873 million), loans and advances to banks $8,518 million (30
June 2024: $12,691 million), loans and advances to customers $15,447 million
(30 June 2024 $20,611 million) investments $3,028 million (30 June 2024: $824
million) less restricted balances $10,912 million (30 June 2024: $9,870
million)
Interest received was $12,082 million (30 June 2024: $14,575 million),
interest paid was $9,574 million (30 June 2024: $10,948 million).
- page 64 -
Contents - 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 Reverse repurchase and repurchase agreements including other similar lending
and borrowing
Other assets and investments 16 Goodwill and intangible assets
17 Property, plant and equipment
18 Other assets
19 Investments in associates and joint ventures
20 Assets held for sale and associated liabilities
Funding, accruals, provisions, contingent liabilities and legal proceedings 21 Other liabilities
22 Contingent liabilities and commitments
23 Legal and regulatory matters
Capital instruments, equity and reserves 24 Subordinated liabilities and other borrowed funds
25 Share capital, other equity instruments and reserves
Other disclosure matters 26 Related party transactions
27 Post balance sheet events
28 Corporate governance
29 Statutory accounts
30 Cash flow statement
- page 65 -
Notes to the financial statements
1. Accounting policies
Statement of compliance
The Group's condensed consolidated interim financial statements consolidate
those of 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.
These interim financial statements have been prepared in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority (FCA) and with UK-adopted International Accounting Standard
34 (IAS 34 Interim Financial Reporting) and IAS 34 as adopted by the European
Union (EU), as there are no applicable differences for the periods presented.
They should be read in conjunction with the 2024 Annual Report, which was
prepared in accordance with the requirements of the Companies Act 2006,
UK-adopted international accounting standards, and International Financial
Reporting Standards (IFRS) (Accounting Standards) as adopted by the European
Union (EU IFRS). The Group's Annual Report 2025 will continue to be prepared
in accordance with these frameworks.
The following parts of the Risk review and Capital review form part of these
financial statements:
a) Risk review: Disclosures marked as 'reviewed' 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 'reviewed' from the start of 'CRD Capital
base' to the end of 'Movement in total capital', excluding 'Total
risk-weighted assets'.
There were no new accounting standards or interpretations that had a material
effect on these Condensed consolidated interim financial statements.
Basis of preparation
The condensed consolidated 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 condensed consolidated financial statements are presented in United States
dollars ($), being the presentation and functional currency of the Group, and
all values are rounded to the nearest million dollars, except when otherwise
indicated. The accounting policies that we applied for these interim condensed
consolidated financial statements are consistent with those described on pages
295 to 380 of the 2024 Annual Report, as are the methods of computation,
except for the accounting policy change summarised below.
Re-presentation of segmental information
During the period there has been a change in respect to the classification of
income attributable to geographic markets which have 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-representation 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
- page 66 -
• Movement in risk-weighted assets
• Risk review: Movement tables for Corporate & Investment Banking
(reviewed) , Wealth & Retail Banking (reviewed) and Wealth & Retail
Banking - Secured (reviewed)
• Risk review: Credit impairment charge (reviewed)
• Notes to the financial statements: Note 2 Segmental information and Note 4
Net fees and commission.
Change in accounting policy
Prior period amounts for certain Credit risk tables (required by IFRS 7 -
Financial Instruments: Disclosure) within the Risk review were also
represented for a change in accounting policy for the presentation of the
Group's geographic 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 financial view reflecting the
location in which exposures are financially booked. This change provides more
reliable and 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 $14.4 billion. This amount was
reclassified from a number of geographic locations. There has been no impact
to Earnings Per Share or Diluted Earnings per Share from this change.
Significant 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. The significant judgements made by
management in applying the Group's accounting policies and key sources of
uncertainty were the same as those applied to the consolidated financial
statements as at, and for, the year ended 31 December 2024.
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 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.
Going concern
These financial statements were approved by the Board of Directors on 31 July
2025. 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 includes 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 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.
- page 67 -
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 31 July 2025.
For this reason, the Group continues to adopt the going concern basis of
accounting for preparing the financial statements.
2. Segmental information
Basis of preparation
The analysis reflects how the client segments and markets are managed
internally to drive better decision-making, resource allocation and return
outcomes. 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.
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 (APMs). 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 APMs are not within the scope of IFRS and are not a substitute for
IFRS measures. These adjustments are set out below.
Restructuring loss of $137 million includes ongoing charges related to
portfolio and businesses being exited and optimising the Group's office space
and property footprint. Fit for Growth (FFG) costs of $160 million, primarily
severance costs, costs of staff working on FFG initiatives and legal and
professional fees, reflect the impact of actions to transform the organisation
to improve productivity, primarily additional redundancy charges, simplifying
technology platforms.
Reconciliations between underlying and reported results are set out in the
tables below:
6 months ended 30.06.25
Underlying $million Restructuring FFG DVA Net gain/ loss on businesses disposed of/ Other items Reported
$million
$million
$million
held for sale
$million
$million
$million
Operating income 10,899 7 - 5 (5) - 10,906
Operating expenses (5,965) (129) (153) - - - (6,247)
Operating profit/(loss) before impairment losses and taxation 4,934 (122) (153) 5 (5) - 4,659
Credit impairment (336) - - - - - (336)
Other impairment (9) (3) (7) - - - (19)
Profit from associates and joint ventures 91 (12) - - - - 79
Profit/(loss) before taxation 4,680 (137) (160) 5 (5) - 4,383
- page 68 -
6 months ended 30.06.24
Underlying Restructuring2 FFG2 DVA Net loss on businesses disposed of/ Other items3 Reported
$million
$million
$million
$million
held for sale¹
$million
$million
$million
Operating income 9,958 48 - (26) (189) - 9,791
Operating expenses (5,673) (197) (86) - - (100) (6,056)
Operating profit/(loss) before impairment losses and taxation 4,285 (149) (86) (26) (189) (100) 3,735
Credit impairment (249) 9 - - - - (240)
Other impairment (143) (4) - - - - (147)
Profit from associates and joint ventures 64 80 - - - - 144
Profit/(loss) before taxation 3,957 (64) (86) (26) (189) (100) 3,492
1 Net loss on businesses disposal includes loss of $174 million relating to
Zimbabwe exit
2 FFG charge previously reported within Restructuring has been re-presented
as a separate item
3 Other items include $100 million charge relating to Korea equity-linked
securities (ELS) portfolio
Underlying performance by client segment
6 months ended 30.06.25 6 months ended 30.06.24
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total Corporate & Investment Banking3 Wealth & Retail Banking3 Ventures3 Central & other items3 Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 6,583 4,162 320 (166) 10,899 6,194 3,884 80 (200) 9,958
External 6,317 1,834 321 2,427 10,899 5,221 1,761 80 2,896 9,958
Inter-segment 266 2,328 (1) (2,593) - 973 2,123 - (3,096) -
Operating expenses (3,155) (2,429) (239) (142) (5,965) (3,045) (2,254) (228) (146) (5,673)
Operating profit/(loss) before impairment losses and taxation 3,428 1,733 81 (308) 4,934 3,149 1,630 (148) (346) 4,285
Credit impairment 14 (332) (24) 6 (336) 54 (267) (43) 7 (249)
Other impairment - (3) - (6) (9) (105) (27) - (11) (143)
Profit from associates and joint ventures - - (11) 102 91 - - (6) 70 64
Underlying profit/(loss) before taxation 3,442 1,398 46 (206) 4,680 3,098 1,336 (197) (280) 3,957
Restructuring and other items2 (146) (130) (1) (20) (297) (77) (195) (1) (192) (465)
Reported profit/(loss) before taxation 3,296 1,268 45 (226) 4,383 3,021 1,141 (198) (472) 3,492
Total assets 512,928 129,591 7,534 263,883 913,936 443,567 122,625 5,115 264,120 835,427
Of which: loans and advances 204,812 126,712 1,555 17,539 350,618 190,474 120,258 1,110 23,865 335,707
to customers
loans and advances to customers 140,930 126,707 1,555 17,539 286,731 130,672 120,249 1,110 23,865 275,896
loans held at fair value through profit or loss (FVTPL) 63,882 5 - - 63,887 59,802 9 - - 59,811
Total liabilities 507,646 244,591 6,010 101,019 859,266 469,158 208,419 4,347 102,176 784,100
Of which: customer accounts1 332,952 240,612 5,718 2,851 582,133 316,543 204,221 4,046 7,452 532,262
1 Customer accounts includes FVTPL and repurchase agreements
2 Other items 2024 include $100 million charge relating to Korea equity
linked securities (ELS) portfolio, $174 million primarily relating to
recycling of FX translation losses from reserves into P&L on the sale of
Zimbabwe
3 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
- page 69 -
Operating income by client segment
6 months ended 30.06.25 6 months ended 30.06.24
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total Corporate & Investment Banking2 Wealth & Retail Banking2 Ventures Central & other items2 Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Underlying versus reported:
Underlying operating income 6,583 4,162 320 (166) 10,899 6,194 3,884 80 (200) 9,958
Restructuring 17 (13) - 3 7 26 16 - 6 48
DVA 5 - - - 5 (26) - - - (26)
Other items1 - - - (5) (5) - - - (189) (189)
Reported operating income 6,605 4,149 320 (168) 10,906 6,194 3,900 80 (383) 9,791
Additional income by account:
Net interest income 705 2,515 50 (226) 3,044 1,272 2,539 45 (681) 3,175
Net fees and commission income 1,088 1,074 30 (60) 2,132 993 955 19 (46) 1,921
Net trading and other income1 4,812 560 240 118 5,730 3,929 406 16 344 4,695
Reported operating income 6,605 4,149 320 (168) 10,906 6,194 3,900 80 (383) 9,791
1 Other items in H1 2024 include loss of $174 million relating to the
Zimbabwe exit
2 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
3. Net interest income
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Balances at central banks 1,036 1,360
Loans and advances to banks 1,109 1,052
Loans and advances to customers 7,221 8,190
Debt securities 2,443 2,716
Other eligible bills 621 807
Accrued on impaired assets (discount unwind) 55 69
Interest income 12,485 14,194
Of which: financial instruments held at fair value through other comprehensive 1,825 1,707
income
Deposits by banks 326 441
Customer accounts 7,053 8,361
Debt securities in issue 1,727 1,794
Subordinated liabilities and other borrowed funds 302 394
Interest expense on IFRS 16 lease liabilities 33 29
Interest expense 9,441 11,019
Net interest income 3,044 3,175
4. Net fees and commission
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Fees and commissions income 2,627 2,363
Of which:
Financial instruments that are not fair valued through profit or loss 763 722
Trust and other fiduciary activities 358 305
Fees and commissions expense (495) (442)
Of which:
Financial instruments that are not fair valued through profit or loss (171) (125)
Trust and other fiduciary activities (31) (25)
Net fees and commission 2,132 1,921
- page 70 -
6 months ended 30.06.25 6 months ended 30.06.24
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total Corporate & Investment Banking Wealth & Retail Banking1 Ventures(1) Central & other items(1) Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Transaction Services 781 - - - 781 704 - - - 704
Payments & Liquidity 315 - - - 315 290 - - - 290
Securities Services 166 - - - 166 127 - - - 127
Trade & Working Capital 300 - - - 300 287 - - - 287
Global Banking 551 - - - 551 504 - - - 504
Lending & Financial Solutions 323 - - - 323 336 - - - 336
Capital Market & Advisory 228 - - - 228 168 - - - 168
Global Markets 23 - - - 23 24 - - - 24
Macro Trading - - - - - 7 - - - 7
Credit Trading 22 - - - 22 17 - - - 17
Valuation & Other Adjustments 1 - - - 1 - - - - -
Wealth solutions - 967 - - 967 - 822 - - 822
Investment Products - 548 - - 548 - 456 - - 456
Bancassurance - 419 - - 419 - 366 - - 366
Deposits & Mortgages - 104 - - 104 - 121 - - 121
CCPL & Other Unsecured Lending - 149 - - 149 - 161 - - 161
Ventures - - 43 - 43 - - 30 - 30
Digital Banks - - 26 - 26 - - 18 - 18
SC Ventures - - 17 - 17 - - 12 - 12
Treasury & Other - 13 - (4) 9 - 13 - (16) (3)
Fees and commission income 1,355 1,233 43 (4) 2,627 1,232 1,117 30 (16) 2,363
Fees and commission expense (267) (159) (13) (56) (495) (239) (162) (11) (30) (442)
Net fees and commission 1,088 1,074 30 (60) 2,132 993 955 19 (46) 1,921
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 $392 million (30
June 2024: $448 million), which will be earned evenly over the remaining life
of the contract until June 2032. For the six months ended 30 June 2025, $28
million of fee income was released from deferred income (30 June 2024: $28
million).
For the bancassurance contract with the annual performance bonus, based on
progress so far and expectation of meeting the performance targets by year-end
with a high probability, a pro-rata portion of the total performance fee,
equal to $119 million (30 June 2024: $116 million) of the fee has been
recognised as fee income in the period.
5. Net trading income
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Net trading income 5,438 4,749
Significant items within net trading income include:
Gains on instruments held for trading1 4,353 3,717
Gains on financial assets mandatorily at fair value through profit or loss 2,710 2,499
Losses on financial assets designated at fair value through profit or loss (3) (1)
Losses on financial liabilities designated at fair value through profit or (1,626) (1,595)
loss
1 Includes $207 million loss (30 June 2024: $110 million gain) from the
translation of foreign currency monetary assets and liabilities
- page 71 -
6. Other operating income
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Other operating income includes:
Rental income from operating lease assets 16 20
Net gain/(loss) on disposal of fair value through other comprehensive income 9 (90)
debt instruments
Net (loss)/gain on amortised cost financial assets (7) 4
Net gain/(loss) on sale of businesses 242(3) (169)¹
Dividend income 6 4
Other 26 177²
Other operating income 292 (54)
1 Includes loss of $174 million from sale of subsidiary (SCB Zimbabwe
Limited) of which $190 million relates to CTA loss. loss of $15 million on
disposal of aviation business, offset by gain of $17 million on disposal of
Shoal and Autumn Life Pte (subsidiary)
2 Includes IAS 29 adjustment Ghana hyperinflationary impact ($106 million)
3 Includes gain of $239 million from disposal of Standard Chartered
Research of which $3 million relates to currency translation adjustment loss,
and gain of $9 million from the sale of the WRB business in Tanzania, partly
offset by $5 million loss from the sale of Standard Chartered Bank Gambia
Limited of which $8 million relates to Currency Translation Adjudgment loss
On 26 June 2025, the Group disposed of its entire interest in Standard
Chartered Research and Technology India Private Limited (SCRTIPL) a wholly
owned 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 half year as
additional analysis is required to finalise the nature and value of intangible
assets.
7. Operating expenses
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Staff costs:
Wages and salaries 3,367 3,288
Social security costs 143 129
Other pension costs 215 223
Share-based payment costs 206 172
Other staff costs 462 524
4,393 4,336
Premises and equipment expenses 175 177
General administrative expenses 1,135 1,027
Depreciation and amortisation
Property, plant and equipment:
Premises 153 148
Equipment 66 39
Intangibles:
Software 325 329
544 516
Total operating expenses 6,247 6,056
Other staff costs include redundancy expenses of $62 million (30 June 2024:
$115 million). Further costs in this category include training, travel costs
and other staff-related costs.
Operating expenses include research expenditure of $500 million (30 June 2024:
$480 million), which was recognised as an expense during the period.
- page 72 -
8. Credit impairment
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Net credit impairment on loans and advances to banks and customers 332 256
Net credit impairment on debt securities¹ 12 (41)
Net credit impairment relating to financial guarantees and loan commitments (16) 24
Net credit impairment relating to other financial assets 8 1
Credit impairment charge1 336 240
1 Includes impairment charge of $6 million (30 June 2024: $14 million
release) on originated credit-impaired debt securities
9. Goodwill, property, plant and equipment and other impairment
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Impairment of other intangible assets (Note 16) 18 148
Other 1 (1)
Goodwill, property, plant and equipment and other impairment 19 147
10. Taxation
The following table provides analysis of taxation charge in the period:
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
The charge for taxation based upon the profit for the period comprises:
Current tax:
United Kingdom corporation tax at 25 per cent (2024: 25 per cent):
Current tax charge on income for the period 5 10
Adjustments in respect of prior periods (including double tax relief) 8 2
Foreign tax:
Current tax charge on income for the period 1,000 993
Adjustments in respect of prior periods (including double tax relief) (9) 27
1,004 1,032
Deferred tax:
Origination/reversal of temporary differences 109 89
Adjustments in respect of prior periods (including double tax relief) (56) 2
53 91
Tax on profits on ordinary activities 1,057 1,123
Effective tax rate 24.1% 32.2%
The tax charge for the period has been calculated by applying the effective
rate of tax which is expected to apply for the year ending 31 December 2025
using rates substantively enacted at 30 June 2025. The rate has been
calculated by estimating and applying an average annual effective income tax
rate to each tax jurisdiction individually.
The tax charge for the period of $1,057 million (30 June 2024: $1,123 million)
on a profit before tax of $4,383 million (30 June 2024: $3,492 million)
reflects the impact of non-creditable withholding taxes and other taxes, tax
losses for which no deferred tax assets are recognised and non-deductible
expenses offset by countries with tax rates lower than the UK, the most
significant of which includes Hong Kong and Singapore and tax exempt income.
Foreign tax includes current tax of $196 million (30 June 2024: $131 million)
on the profits assessable in Hong Kong. Deferred tax includes origination or
reversal of temporary differences of $9 million (30 June 2024: $27 million)
provided at a rate of 16.5 per cent (30 June 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 30
June 2025 includes $10 million in respect of Pillar Two income taxes (30 June
2024: $10 million).
- page 73 -
Deferred tax comprises assets and liabilities as follows:
30.06.25 31.12.24
Total Asset Liability Total Asset Liability
$million
$million
$million
$million
$million
$million
Deferred tax comprises:
Accelerated tax depreciation (377) 37 (414) (380) 19 (399)
Impairment provisions on loans and advances 202 196 6 190 139 51
Tax losses carried forward 87 17 70 74 51 23
Equity Instruments at Fair value through other comprehensive income (74) (2) (72) (62) (12) (50)
Debt Instruments at Fair value through other comprehensive income (60) 1 (61) (30) (14) (16)
Cash flow hedges (89) (17) (72) (9) - (9)
Own credit adjustment 17 1 16 4 4 -
Retirement benefit obligations (5) 12 (17) (7) 16 (23)
Share-based payments 51 11 40 54 12 42
Other temporary differences (68) 143 (211) 13 199 (186)
(316) 399 (715) (153) 414 (567)
11. Dividends
Ordinary equity shares
6 months ended 30.06.25 6 months ended 30.06.24
Cents per share $million Cents per share $million
2023 final dividend declared and paid during the period - - 21 551
2024 final dividend declared and paid during the period 28 670 - -
The 2024 final dividend per share of 28 cents per ordinary share ($670
million) was paid to eligible shareholders on 19 May 2025, and is recognised
in these interim accounts.
Interim 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.
2025 recommended interim ordinary share dividend
The 2025 interim dividend of 12.3 cents per ordinary share will be paid in
pounds sterling, Hong Kong dollars or US dollars on 30 September 2025 to
shareholders on the UK register of members at the close of business in the UK
on 8 August 2025.
Preference shares and Additional Tier 1 (AT1) securities
Dividends on these preference shares and securities classified as equity are
recorded in the period in which they are declared.
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Non-cumulative redeemable preference shares:
7.014 per cent preference shares of $5 each 26 26
Floating rate preference shares of $5 each¹ 24 27
50 53
AT1 securities: fixed rate resetting perpetual subordinated contingent 194 156
convertible securities
244 209
1 Floating rate is based on Secured Overnight Financing Rate (SOFR),
average rate paid for floating preference shares is 6.28 per cent (30 June
2024: 7.24 per cent)
- page 74 -
12. Earnings per ordinary share
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Profit for the period attributable to equity holders 3,326 2,369
Non-controlling interest (17) 9
Dividend payable on preference shares and AT1 classified as equity (244) (209)
Profit for the period attributable to ordinary shareholders 3,065 2,169
Items normalised:1
Restructuring 137 64
FFG 160 86
DVA (5) 26
Net loss on sale of business 5 189
Other items - 100
Tax on normalised items (55) (67)
Underlying profit for the period attributable to ordinary shareholders 3,307 2,567
Basic - weighted average number of shares (millions) 2,375 2,605
Diluted - weighted average number of shares (millions) 2,443 2,669
Basic earnings per ordinary share (cents) 129.1 83.3
Diluted earnings per ordinary share (cents) 125.5 81.3
Underlying basic earnings per ordinary share (cents) 139.2 98.5
Underlying diluted earnings per ordinary share (cents) 135.4 96.2
1 Refer to 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
(30 June 2024: 59 million). The total number of share options outstanding,
under schemes considered to be potentially dilutive, was 10 million (30 June
2024: 5 million). These options have strike prices ranging from $5.03 to
$8.36. Of the total number of employee share options and share awards at 30
June 2025, there were nil share options and awards which were anti-dilutive.
The 230 million decrease (30 June 2024: 234 million decrease) in the basic
weighted average number of shares is primarily due to the impact of the share
buyback programmes completed during the period.
- page 75 -
13. Financial instruments
Classification and measurement
Assets Notes Assets at fair value Assets Total
held at amortised cost
$million
$million
Trading Derivatives held for hedging Non-trading mandatorily at fair value through profit Designated at fair value through profit or loss Fair value Total financial assets at
$million
$million
or loss
$million
through other comprehensive income
fair value
$million
$million
$million
Cash and balances at - - - - - - 80,165 80,165
central banks1
Financial assets held at fair value through profit or loss
Loans and advances to banks2 2,393 - - - - 2,393 - 2,393
Loans and advances 7,961 - 158 - - 8,119 - 8,119
to customers2
Reverse repurchase 15 50 - 90,283 - - 90,333 - 90,333
agreements and other
similar secured lending
Debt securities, alternative tier one and other eligible bills 93,044 - 138 46 - 93,228 - 93,228
Equity shares 7,287 - 163 - - 7,450 - 7,450
110,735 - 90,742 46 - 201,523 - 201,523
Derivative financial instruments 14 62,813 1,412 - - - 64,225 - 64,225
Loans and advances to banks2,3 - - - - - - 42,386 42,386
of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 4,250 4,250
Loans and advances to customers2 - - - - - - 286,731 286,731
of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 4,189 4,189
Investment securities
Debt securities, alternative tier one and other eligible bills - - - - 102,407 102,407 55,210 157,617
Equity shares - - - - 971 971 - 971
- - - - 103,378 103,378 55,210 158,588
Other assets 18 - - - - - - 45,372 45,372
Assets held for sale 20 1 - - - - 1 622 623
Total at 30 June 2025 173,549 1,412 90,742 46 103,378 369,127 510,486 879,613
1 Comprises cash held at central banks in restricted accounts of $10,912
million, or on demand, or placements which are contractually due to mature
overnight only. Other placements with central banks are reported as part of
Loans and advances to customers
2 Further analysed in the Risk review and Capital review sections
3 Loans and advances to banks include amounts due on demand from banks
other than central banks
- page 76 -
Assets Notes Assets at fair value Assets Total
held at amortised cost
$million
$million
Trading Derivatives held for hedging Non-trading mandatorily at fair value through profit Designated at fair value through profit or loss Fair value Total financial assets at
$million
$million
or loss
$million
through other comprehensive income
fair value
$million
$million
$million
Cash and balances at - - - - - - 63,447 63,447
central banks1
Financial assets held at fair value through profit or loss
Loans and advances to banks2 2,213 - - - - 2,213 - 2,213
Loans and advances 6,912 - 172 - - 7,084 - 7,084
to customers2
Reverse repurchase 15 336 - 85,859 - - 86,195 - 86,195
agreements and other
similar secured lending
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 banks2,3 - - - - - - 43,593 43,593
of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 2,946 2,946
Loans and advances - - - - - - 281,032 281,032
to customers2
of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 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 18 - - - - - - 34,585 34,585
Assets held for sale 20 - - - 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 $7,799
million, or on demand, or placements which are contractually due to mature
overnight only.
Other placements with central banks are reported as part of Loans and advances
to customers
2 Further analysed in the Risk review and Capital review sections
3 Loans and advances to banks include amounts due on demand from banks
other than central banks
- page 77 -
Liabilities Notes Liabilities at fair value Amortised cost Total
$million
$million
Trading Derivatives held for hedging Designated at fair value through Total financial liabilities at
$million
$million
profit or loss
fair value
$million
$million
Financial liabilities held at fair value through profit or loss
Deposits by banks - - 1,994 1,994 - 1,994
Customer accounts 71 - 24,887 24,958 - 24,958
Repurchase agreements and other similar secured borrowing 15 - - 43,946 43,946 - 43,946
Debt securities in issue - - 12,997 12,997 - 12,997
Short positions 15,656 - - 15,656 - 15,656
15,727 - 83,824 99,551 - 99,551
Derivative financial instruments 14 67,886 1,992 - 69,878 - 69,878
Deposits by banks - - - - 30,883 30,883
Customer accounts - - - - 517,390 517,390
Repurchase agreements and other similar secured borrowing 15 - - - - 5,250 5,250
Debt securities in issue - - - - 70,088 70,088
Other liabilities 21 - - - - 47,921 47,921
Subordinated liabilities and other borrowed funds 24 - - - - 8,778 8,778
Liabilities included in disposal groups held for sale 20 - - - - 194 194
Total at 30 June 2025 83,613 1,992 83,824 169,429 680,504 849,933
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 15 925 - 32,614 33,539 - 33,539
Debt securities in issue 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 15 - - - - 12,132 12,132
Debt securities in issue - - - - 64,609 64,609
Other liabilities 21 - - - - 44,047 44,047
Subordinated liabilities and other borrowed funds 24 - - - - 10,382 10,382
Liabilities included in disposal groups held for sale 20 - - - - 360 360
Total at 31 December 2024 95,490 2,027 70,009 167,526 621,419 788,945
Financial liabilities designated at fair value through profit or loss
30.06.25 31.12.24
$million
$million
Carrying balance aggregate fair value 83,824 70,009
Amount contractually obliged to repay at maturity 83,728 70,166
Difference between aggregate fair value and contractually obliged to repay at 96 (157)
maturity
Cumulative change in Fair Value accredited to Credit Risk difference (286) (276)
The net fair value loss on financial liabilities designated at fair value
through profit or loss was $1,626 million for the period (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 78 -
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 is the valuation governance forum
consisting of representatives from Group Market Risk, Product Control,
Valuation Methodology and the business, which meets monthly to discuss and
approve the independent valuations of the inventory. For Principal Finance,
the Investment Committee meeting is held on a quarterly basis to review
investments and valuations.
Significant accounting estimates and judgements
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.
• Fair value of financial instruments is determined using valuation
techniques and estimates (see below) 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.
• 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.
- page 79 -
- 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 foreign exchange
basket options, 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.
- Equity shares - unlisted equity investments: The majority of unlisted
equity investments are valued based on market multiples, including Price to
Book (P/B), Price-to-Earnings (P/E) or enterprise value to earnings before
income tax, depreciation and amortisation (EV/EBITDA) ratios of comparable
listed companies. The primary inputs for the valuation of these investments
are the actual financials or forecasted earnings of the investee companies and
market multiples obtained from the comparable listed companies. To ensure
comparability between these unquoted investments and the comparable listed
companies, appropriate adjustments are also applied (for example, liquidity
and size) in the valuation. In circumstances where an investment does not have
direct comparables or where the multiples for the comparable companies cannot
be sourced from reliable external sources, alternative valuation techniques
(for example, discounted cash flow model or net asset value ("NAV") or option
pricing model), which use predominantly unobservable inputs or Level 3 inputs,
may be applied. Even though market multiples for the comparable listed
companies can be sourced from third-party sources (for example, Bloomberg),
and those inputs can be deemed Level 2 inputs, all unlisted investments
(excluding those where observable inputs are available, for example,
over-the-counter (OTC) prices) are classified as Level 3 on the basis that the
valuation methods involve judgements ranging from determining comparable
companies to discount rates where the discounted cash flow method is applied.
- Loans and advances: These primarily include loans in the FM Bond and Loan
Syndication business which were not fully syndicated as of 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, their 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.
- page 80 -
- 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 reprices
within one month, and approximately half reprices 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 of 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 reprice to current market rates frequently.
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 30.06.25 01.01.24 Movement 31.12.24
$million
during the year
$million
$million
during the year
$million
$million
$million
Bid-offer valuation adjustment 117 6 123 115 2 117
Credit valuation adjustment 134 5 139 119 15 134
Debit valuation adjustment (105) (8) (113) (129) 24 (105)
Model valuation adjustment 5 1 6 4 1 5
Funding valuation adjustment 41 (9) 32 33 8 41
Other fair value adjustments 26 19 45 25 1 26
Total 218 14 232 167 51 218
Income deferrals
Day 1 and other deferrals 138 (11) 127 109 29 138
Total 138 (11) 127 109 29 138
Note: Amounts shown in brackets represent 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.
- page 81 -
• 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.
• 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.
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.
- page 82 -
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 83 -
The following tables show the classification of financial instruments held at
fair value into the valuation hierarchy:
Assets 30.06.25 31.12.24
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 - 2,122 271 2,393 - 2,213 - 2,213
Loans and advances to customers - 5,781 2,338 8,119 - 5,147 1,937 7,084
Reverse repurchase agreements and other similar secured lending - 86,941 3,392 90,333 19 82,937 3,239 86,195
Debt securities and other eligible bills 40,762 50,584 1,882 93,228 32,331 42,615 1,593 76,539
Of which:
Issued by central banks and governments1 37,273 18,183 4 55,460 30,278 13,355 9 43,642
Issued by corporates other than financial institutions1 14 6,227 235 6,476 7 4,860 399 5,266
Issued by financial institutions1 3,475 26,174 1,643 31,292 2,046 24,400 1,185 27,631
Equity shares 7,132 - 318 7,450 5,287 8 191 5,486
Derivative financial instruments 770 63,351 104 64,225 386 80,958 128 81,472
Of which:
Foreign exchange 158 55,876 26 56,060 140 72,870 37 73,047
Interest rate 23 5,845 55 5,923 27 6,296 80 6,403
Credit - 274 18 292 - 388 9 397
Equity and stock index options - 184 5 189 - 349 2 351
Commodity 589 1,172 - 1,761 219 1,055 - 1,274
Investment securities
Debt securities and other eligible bills 59,414 42,993 - 102,407 50,249 38,176 - 88,425
Of which:
Issued by central banks and governments1 47,073 23,000 - 70,073 41,395 16,916 - 58,311
Issued by corporates other than financial institutions1 - 431 - 431 - 490 - 490
Issued by financial institutions1 12,341 19,562 - 31,903 8,854 20,770 - 29,624
Equity shares 30 7 934 971 27 2 965 994
Total assets2 108,108 251,779 9,239 369,126 88,299 252,056 8,053 348,408
Liabilities
Financial instruments held at fair value through profit or loss
Deposits by banks - 1,664 330 1,994 - 1,522 371 1,893
Customer accounts - 20,672 4,286 24,958 - 19,058 2,714 21,772
Repurchase agreements and other similar secured borrowing - 43,946 - 43,946 - 33,539 - 33,539
Debt securities in issue - 11,649 1,348 12,997 - 12,317 1,414 13,731
Short positions 8,359 7,209 88 15,656 8,789 5,558 180 14,527
Derivative financial instruments 446 69,208 224 69,878 419 81,387 258 82,064
Of which:
Foreign exchange 137 57,419 19 57,575 183 69,684 8 69,875
Interest rate 30 7,285 21 7,336 14 8,586 23 8,623
Credit - 2,672 132 2,804 - 2,131 189 2,320
Equity and stock index options - 350 52 402 - 157 37 194
Commodity 279 1,482 - 1,761 222 829 1 1,052
Total liabilities 8,805 154,348 6,276 169,429 9,208 153,381 4,937 167,526
1 Includes covered bonds of $3,231 million (31 December 2024: $3,727
million), securities issued by Multilateral Development Banks/International
Organisations of $15,928 million (31 December 2024: $10,679 million), and
State-owned agencies and development banks of $25,561 million (31 December
2024: $16,759 million)
2 The table above does not include held for sale assets of $1 million (31
December 2024: $5 million) .These are reported in Note 20 together with their
fair value hierarchy
- page 84 -
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 $286 million (31 December 2024: $739 million) and $350 million
(31 December 2024: $320 million) respectively.
There were no significant changes to valuation or levelling approaches during
the period ending 30 June 2025.
There were no significant transfers of financial assets and liabilities
measured at fair value between Level 1 and Level 2 during the period ended 30
June 2025.
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.
30.06.25 31.12.24
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 80,165 - 80,165 - 80,165 63,447 - 63,447 - 63,447
Loans and advances to banks 42,386 - 42,363 48 42,411 43,593 - 43,430 165 43,595
of which - reverse repurchase agreements and other similar secured lending 4,250 - 4,254 - 4,254 2,946 - 2,948 - 2,948
Loans and advances to customers 286,731 - 29,641 257,678 287,319 281,032 - 40,582 238,986 279,568
of which - reverse repurchase agreements and other similar secured lending 4,189 - 4,178 11 4,189 9,660 - 9,618 42 9,660
Investment securities2 55,210 - 53,756 - 53,756 55,137 - 53,050 24 53,074
Other assets¹ 45,372 - 45,372 - 45,372 34,585 - 34,585 - 34,585
Assets held for sale 622 15 491 116 622 884 58 353 473 884
Total assets 510,486 15 251,788 257,842 509,645 478,678 58 235,447 239,648 475,153
Liabilities
Deposits by banks 30,883 - 30,883 - 30,883 25,400 - 25,238 - 25,238
Customer accounts 517,390 - 513,906 - 513,906 464,489 - 461,549 - 461,549
Repurchase agreements and other similar secured borrowing 5,250 - 5,249 - 5,249 12,132 - 12,133 - 12,133
Debt securities in issue 70,088 34,121 35,757 - 69,878 64,609 32,209 32,181 - 64,390
Subordinated liabilities and other borrowed funds 8,778 7,904 559 - 8,463 10,382 9,599 429 - 10,028
Other liabilities¹ 47,921 - 47,921 - 47,921 44,047 - 44,047 - 44,047
Liabilities held for sale 194 - 194 - 194 360 89 271 - 360
Total liabilities 680,504 42,025 634,469 - 676,494 621,419 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 $25,525 million at 30
June 2025 (31 December 2024: $23,150 million)
- page 85 -
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 at Principal valuation technique Significant unobservable inputs Range1 Weighted average2
30 June 2025
Assets Liabilities
$million
$million
Loans and advances to banks 271 - Discounted cash flows Price/yield 4.5% - 4.9% 4.6%
Loans and advances to customers 2,338 - Discounted cash flows Price/yield 0.7% - 100% 27.5%
Recovery rate 94.7% - 96.3% 96.0%
Reverse repurchase agreements and other similar secured lending 3,392 - Discounted cash flows Repo curve 1.7% - 8.5% 6.1%
Price/yield 4.9% - 18.1% 6.9%
Debt securities, alternative tier one and other eligible securities 1,878 - Discounted cash flows Price/yield 0.7% - 19.4% 6.7%
Recovery rate 0.01% - 15.0% 5.7%
Government bonds and treasury bills 4 - Discounted cash flows Price/yield 8.6% - 8.6% 8.6%
Equity shares (includes private equity investments) 1,252 - Comparable pricing/yield EV/Revenue multiples 7.1x - 10.0x 7.6x
P/E multiples 15.5x - 31.7x 20.0x
P/B multiples 0.4x - 3.4x 1.3x
P/S multiples 1.3x - 1.3x 1.3x
Liquidity discount 18.9% - 30.2% 19.7%
Discounted cash flows Discount rates 7.1% - 19.8% 13.8%
Option pricing model Equity value based on EV/Revenue multiples 6.3x - 19.0x 13.3x
Equity value based on EV/EBITDA multiples 3.9x - 3.9x 3.9x
Equity value based on volatility 40.0% - 105.0% 101.5%
Derivative financial instruments
of which:
Foreign exchange 26 19 Option pricing model Foreign exchange option implied volatility 39.4% - 42.5% 41.8%
Discounted cash flows Interest rate curves 1.9% - 11.6% 3.9%
Foreign exchange curves 1.7% - 27.6% 12.1%
Interest rate 55 21 Discounted cash flows Interest rate curves 3.6% - 28.2% 4.7%
Option pricing model Bond option implied volatility 0.1% - 1.1% 0.8%
Credit 18 132 Discounted cash flows Price/yield 2.8% - 5.8% 5.0%
Interest rate curves 3.6% - 4.5% 4.0%
Option pricing model Credit spreads 0.1% - 2.2% 0.8%
Bond option implied volatility 15.0% - 15.0% 15.0%
Equity and stock index 5 52 Internal pricing model Equity-Equity correlation 28.1% - 100% 77.2%
Equity-FX correlation (40.0)% - 46.2% 4.5%
Deposits by banks - 330 Discounted cash flows Price/yield 4.5% - 5.8% 5.2%
Customer accounts - 4,286 Internal pricing model Equity-Equity correlation 28.1% - 100% 77.2%
Equity-FX correlation (40.0)% - 46.2% 4.5%
Discounted cash flows Interest rate curves 5.1% - 11.6% 9.3%
Price/yield 0.7% - 19.4% 10.0%
Option pricing model Foreign exchange option implied volatility 5.5% - 6.8% 5.7%
Debt securities in issue - 1,348 Discounted cash flows Price/yield 0.7% - 16.3% 4.9%
Foreign exchange curves 4.4% - 13.1% 9.1%
Internal pricing model Equity-Equity correlation 28.1% - 100% 77.2%
Equity-FX correlation (40.0)% - 46.2% 4.7%
Option pricing model Bond option implied volatility 0.1% - 15% 14.9%
Short positions - 88 Discounted cash flows Price/yield 5.4% - 6.1% 5.4%
Total 9,239 6,276
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 at 30 June 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
- page 86 -
Instrument Value at Principal valuation technique Significant unobservable inputs Range1 Weighted average2
31 December 2024
Assets Liabilities
$million
$million
Loans and advances to customers 1,937 - Discounted cash flows Price/yield 1.0% - 100% 20.8%
Recovery rate 93.2% - 95.6% 95.1%
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 EV/EBITDA multiples 5.3x - 18.1x 14.8x
EV/Revenue multiples 8.5x - 12.9x 9.0x
P/E multiples 17.9x - 48.3x 46.9x
P/B multiples 0.3x - 3.2x 1.3x
P/S multiples 0.2x - 1.3x 0.2x
Liquidity discount 10.0% - 30.0% 16.8%
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 positions - 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 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
- page 87 -
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 while an interest rate correlation refers to the
correlation between two swap rates, and 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.
• Net asset value (NAV) is the value of an entity's assets after deducting
any liabilities.
• Interest rate curves is the term structure of interest rates and measures
of future interest rates at a particular point in time.
• Liquidity discounts in the valuation of unlisted investments are primarily
applied to the valuation of unlisted firms' investments to reflect the fact
that these stocks are not actively traded. An increase in liquidity discount
will result in an unfavourable movement in the fair value of the unlisted
firm.
• Price-Earnings (P/E) multiple is the ratio of the market value of the
equity to the net income after tax. An increase in P/E multiple will result in
a favourable movement in the fair value of the unlisted firm.
• Price-Book (P/B) multiple is the ratio of the market value of equity to
the book value of equity. An increase in P/B multiple will result in a
favourable movement in the fair value of the unlisted firm.
• Price-Sales (P/S) multiple is the ratio of the market value of equity to
sales. An increase in P/S multiple will result in a favourable movement in the
fair value of the unlisted firm.
• Recovery rate 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 88 -
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 Loans and advances Reverse repurchase agreements and other similar secured lending Debt securities, alternative tier one and other eligible bills Equity Other Derivative financial instruments Debt securities, alternative tier one and other eligible bills Equity Total
to banks
to customers
$million
$million
shares
Assets
$million
$million
shares
$million
$million
$million
$million
$million
$million
At 1 January 2025 - 1,937 3,239 1,593 191 - 128 - 965 8,053
Total (losses)/gains recognised in income statement (2) 24 (66) (3) (18) - (9) - - (74)
Net trading income (2) 24 (66) 53 (18) - (9) - - (18)
Other operating income - - - (56) - - - - - (56)
Total (losses)/gains recognised in other comprehensive income (OCI) - - - - - - - - 107 107
Fair value through OCI reserve - - - - - - - - 91 91
Exchange difference - - - - - - - - 16 16
Purchases 278 1,069 5,476 747 164 - 59 - 11 7,804
Sales - (668) (5,172) (651) (12) - (33) - (151) (6,687)
Settlements (5) (78) (85) (6) - - (24) - - (198)
Transfers out1 - (269) - (32) (7) - (17) - (4) (329)
Transfers in2 - 323 - 234 - - - - 6 563
At 30 June 2025 271 2,338 3,392 1,882 318 - 104 - 934 9,239
Recognised in the income statement3 - (8) (8) 1 (18) - 3 - - (30)
At 1 January 2024 - 1,960 2,363 1,262 184 6 80 72 787 6,714
Total (losses)/gains recognised in income statement - (18) (85) 25 (1) (1) (36) - - (116)
Net trading income - (18) (85) (6) 2 - (36) - - (143)
Other operating income - - - 31 (3) (1) - - - 27
Total (losses)/gains recognised in other comprehensive income (OCI) - - - - - - - (13) (31) (44)
Fair value through OCI reserve - - - - - - - - (18) (18)
Exchange difference - - - - - - - (13) (13) (26)
Purchases 18 2,538 2,725 468 3 - 166 13 37 5,968
Sales (2) (2,631) (2,199) (668) (3) (4) (114) - (18) (5,639)
Settlements (7) (14) (329) - - - (15) - - (365)
Transfers out (13) (155) (5) - - - (2) (72) (1) (248)
Transfers in 40 255 140 - 6 - 38 - 1 480
At 30 June 2024 36 1,935 2,610 1,087 189 1 117 - 775 6,750
Recognised in the income statement3 - 1 1 11 12 - (10) - - 15
1 Transfers out includes loans and advances, debt securities, alternative
tier one and other eligible bills, equity shares 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, debt securities,
alternative tier one and other eligible bills and equity shares where the
valuation parameters become unobservable during the period
3 Represents total unrealised (losses)/gains recognised in the income
statement, within net trading income, relating to change in fair value of
asset
- page 89 -
Level 3 movement tables - financial liabilities
Deposits by banks Customer accounts Debt securities Derivative financial instruments Short Other Total
$million
$million
in issue
$million
positions
liabilities
$million
$million
$million
$million
At 1 January 2025 371 2,714 1,414 258 180 - 4,937
Total losses/(gains) recognised in income statement - 65 10 56 8 (2) - 137
net trading income
Issues 157 3,067 1,022 350 - - 4,596
Settlements (263) (1,316) (1,109) (387) (90) - (3,165)
Transfers out1 - (230) (39) (10) - - (279)
Transfers in2 - 41 4 5 - - 50
At 30 June 2025 330 4,286 1,348 224 88 - 6,276
Recognised in the income statement3 1 3 5 2 - - 11
At 1 January 2024 334 1,278 1,041 196 103 8 2,960
Total losses/(gains) recognised in income statement - 37 (4) 16 (12) - (7) 30
net trading income
Issues 218 1,427 2,334 240 - - 4,219
Settlements (190) (990) (1,127) (217) - - (2,524)
Transfers out - (20) (162) (7) (103) - (292)
Transfers in - 38 37 9 - - 84
At 30 June 2024 399 1,729 2,139 209 - 1 4,477
Recognised in the income statement3 24 3 5 (4) - - 28
1 Transfers out during the period primarily relate to customer accounts,
debt securities in issue and derivative financial instruments where the
valuation parameters became observable during the period and were transferred
to Level 2 financial liabilities
2 Transfers in during the period primarily relate to customer accounts,
debt securities in issue and derivative financial instruments where the
valuation parameters become unobservable during the period
3 Represents total unrealised losses/(gains) recognised in the income
statement, within net trading income, relating to change in fair value of
liabilities
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.
- page 90 -
Held at fair value through profit or loss Fair value through other comprehensive income
Net exposure Favourable Unfavourable changes Net exposure Favourable Unfavourable changes
$million
changes
$million
$million
changes
$million
$million
$million
Financial instruments held at fair value
Loans and advances 2,609 2,651 2,533 - - -
Reverse repurchase agreements and other similar secured lending 3,392 3,491 3,300 - - -
Debt securities, alternative tier one and other eligible bills 1,882 1,943 1,822 - - -
Equity shares 318 349 287 934 1,027 841
Derivative financial instruments (120) (105) (135) - - -
Customer accounts (4,286) (3,999) (4,556) - - -
Deposits by banks (330) (326) (334) - - -
Short positions (88) (87) (89) - - -
Debt securities in issue (1,348) (1,262) (1,435) - - -
At 30 June 2025 2,029 2,655 1,393 934 1,027 841
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
30.06.25 31.12.24 30.06.25 31.12.24
$million
$million
$million
$million
Held at fair value through profit or loss 626 470 (636) (496)
Fair value through other comprehensive income 93 67 (93) (77)
- page 91 -
14. Derivative financial instruments
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 30.06.25 31.12.24
Notional principal amounts Assets Liabilities Notional principal amounts Assets Liabilities
$million
$million
$million
$million
$million
$million
Foreign exchange derivative contracts:
Forward foreign exchange contracts 5,638,429 45,632 46,062 4,923,991 54,913 51,128
Currency swaps and options 1,692,000 10,403 11,474 1,377,308 18,104 18,720
7,330,429 56,035 57,536 6,301,299 73,017 69,848
Interest rate derivative contracts:
Swaps 7,739,177 19,019 20,160 6,267,261 20,600 22,282
Forward rate agreements and options 313,474 1,166 1,081 294,705 2,233 2,771
8,052,651 20,185 21,241 6,561,966 22,833 25,053
Exchange traded futures and options 508,822 25 39 383,528 30 27
Credit derivative contracts 224,896 292 2,804 227,675 397 2,320
Equity and stock index options 15,918 189 402 10,678 351 194
Commodity derivative contracts 197,517 1,761 1,761 142,393 1,274 1,052
Gross total derivatives 16,330,233 78,487 83,783 13,627,539 97,902 98,494
Offset - (14,262) (13,905) - (16,430) (16,430)
Total derivatives 16,330,233 64,225 69,878 13,627,539 81,472 82,064
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 derivatives 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 above are derivatives held for hedging purposes as
follows:
30.06.25 31.12.24
Notional principal amounts Assets Liabilities Notional principal amounts Assets Liabilities
$million
$million
$million
$million
$million
$million
Derivatives designated as fair value hedges:
Interest rate swaps 65,172 828 1,232 63,840 763 1,679
Currency swaps 1,175 90 - 1,035 - 56
66,347 918 1,232 64,875 763 1,735
Derivatives designated as cash flow hedges:
Interest rate swaps 52,796 334 65 49,309 165 282
Forward foreign exchange contracts 3,286 30 61 9,193 609 1
Currency swaps 9,348 71 215 14,305 729 2
65,430 435 341 72,807 1,503 285
Derivatives designated as net investment hedges:
Forward foreign exchange contracts 18,558 59 419 14,137 300 7
Total derivatives held for hedging 150,335 1,412 1,992 151,819 2,566 2,027
- page 92 -
15. Reverse repurchase and repurchase agreements including other similar
lending and borrowing
Reverse repurchase agreements and other similar secured lending
30.06.25 31.12.24
$million
$million
Banks 38,815 37,700
Customers 59,957 61,101
98,772 98,801
Of which:
Fair value through profit or loss 90,333 86,195
Banks 34,565 34,754
Customers 55,768 51,441
Held at amortised cost 8,439 12,606
Banks 4,250 2,946
Customers 4,189 9,660
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:
30.06.25 31.12.24
$million
$million
Securities and collateral received (at fair value) 101,219 103,007
Securities and collateral which can be repledged or sold (at fair value) 100,946 102,741
Amounts repledged/transferred to others for financing activities, to satisfy 19,126 27,708
liabilities under sale and repurchase agreements (at fair value)
Repurchase agreements and other similar secured borrowing
30.06.25 31.12.24
$million
$million
Banks 9,411 8,669
Customers 39,785 37,002
49,196 45,671
Of which:
Fair value through profit or loss 43,946 33,539
Banks 8,617 7,759
Customers 35,329 25,780
Held at amortised cost 5,250 12,132
Banks 794 910
Customers 4,456 11,222
The tables below set out the financial assets provided as collateral for
repurchase and other secured borrowing transactions:
Collateral pledged against repurchase agreements Fair value through profit or loss Fair value Amortised cost Off-balance sheet Total
$million
through other comprehensive income
$million
$million
$million
$million
On-balance sheet
Debt securities and other eligible bills 5,559 12,118 14,062 - 31,739
Off-balance sheet
Repledged collateral received - - - 19,126 19,126
At 30 June 2025 5,559 12,118 14,062 19,126 50,865
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
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).
- page 93 -
16. Goodwill and intangible assets
30.06.25 31.12.24
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 75 15 249 339 (42) (18) (109) (169)
Additions - - 451 451 - 1 952 953
Disposals - - (11) (11) - - (5) (5)
Impairment - - (49)1 (49) - - (663)2 (663)
Amounts written off - - (53) (53) - (9) (42) (51)
At 30 June/31 December 2,462 267 6,888 9,617 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 - 15 125 140 - (20) (48) (68)
Amortisation - - 325 325 - 4 695 699
Impairment charge - - (31)1 (31) - - (102)2 (102)
Disposal - - (4) (4) - - - -
Amounts written off - - (53) (53) - - (41) (41)
At 30 June/31 December - 264 3,262 3,526 - 249 2,900 3,149
Net book value 2,462 3 3,626 6,091 2,387 3 3,401 5,791
1 Includes impairment of software intangibles capitalised as at 31
December 2024
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. The Group has
made improvements in its processes and controls to capture the required
evidence going forward. The Group has also performed its annual review of
computer software intangibles to determine instances when the Group is no
longer using certain applications in its ongoing business and impaired $78
million. A total of $561 million is recorded within impairment to reflect the
above
At 30 June 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 on 30 June 2025 (31 December 2024: $ nil).
The Group assessed the goodwill assigned to each of the Group's
cash-generating units (CGUs) and determined that there are no indicators of
impairment for material CGUs at 30 June 2025.
17. Property, plant and equipment
30.06.25 31.12.24
Premises $million Equipment $million Leased premises assets $million Leased equipment assets $million Total $million Premises $million Equipment $million Leased premises assets $million Leased equipment assets $million Total $million
Cost and valuation
At 1 January 2024 1,726 936 2,026 163 4,851 1,741 810 1,864 18 4,433
Exchange translation differences 53 23 50 1 127 (41) (31) (38) (4) (114)
Additions 78 47 132 5 262 112 194 213 150 669
Disposals and fully depreciated assets written off (7) (12) (27) (1) (47) (61) (37) (13) (1) (112)
Transfers to assets held for sale (17) - 1 - (16) - - - -
Other movements (3) - - - (3) (25) - - - (25)
At 30 June/31 December 1,830 994 2,182 168 5,174 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 21 21 19 1 62 (28) (15) (40) (14) (97)
Charge for the year 41 51 112 15 219 79 92 220 36 427
Impairment charge (1) - 1 - - 2 - 9 - 11
Attributable to assets sold, transferred or written off (4) (12) (18) (1) (35) (29) (37) (7) (1) (74)
Transfers to assets held for sale (4) - - - (4) - - - - -
At 30 June/31 December 769 635 1,210 54 2,668 716 575 1,096 39 2,426
Net book value 1,061 359 972 114 2,506 1,010 361 930 124 2,425
- page 94 -
18. Other assets
Other assets include:
30.06.25 31.12.24
$million
$million
Financial assets held at amortised cost (Note 13):
Hong Kong SAR Government certificates of indebtedness (Note 21)¹ 6,360 6,369
Cash collateral2 13,895 11,046
Acceptances and endorsements 4,921 5,476
Unsettled trades and other financial assets 20,196 11,694
45,372 34,585
Non-financial assets:
Commodities and emissions certificates3 19,366 8,358
Other assets 691 525
65,429 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 Cash collateral are margins placed to collateralise net derivative
mark-to-market positions
3 Comprises precious metals and emission certificates, being inventory that
is carried at fair value less costs to sell. $16.6 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). $2.7 billion is emissions certificates and other
commodity related balances classified as Level 2 (31 December 2024: $2.7
billion)
19. Investments in associates and joint ventures
Share of profit from investment in associates and joint ventures comprises:
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Loss from investment in joint ventures (7) (3)
Profit from investment in associates 86 147
Total 79 144
Interests in associates and joint ventures 30.06.25 31.12.24
$million
$million
At 1 January 1,020 966
Exchange translation difference 22 (40)
Additions1 361 22
Share of profits 79 108
Dividend received2 (45) (36)
Share of fair value through other comprehensive income (FVOCI) and Other (30) 9
reserves
Other movements (2) (9)
At 30 June/31 December 1,405 1,020
1 Includes investment in Jumbotail Technologies Private Limited. Refer to
Note 6 Other operating income
2 Includes capital distribution from Ascenta IV
The Group's principal associates are:
Associate Nature of activities Main areas of operation Group interest
in associate
%
China Bohai Bank Banking China 16.26
Jumbotail Technologies Pvt. Ltd E-commerce India 46.55
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; these shares give the Group 46.64 per cent voting rights in JTPL. The
carrying value as of 30 June 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 per cent.
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.
- page 95 -
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 31 March 2025 (six months of earnings) in
the Group's consolidated statement of income and consolidated statement of
comprehensive income for the period ended 30 June 2025, also considering any
known changes or events in the subsequent period from 1 April 2025 to 30
June 2025 that would have materially affected Bohai's results.
Impairment testing
On 30 June 2025, the listed equity value of Bohai is below the carrying amount
of the Group's investment in associate. As a result, the Group assessed the
carrying value of its investment in Bohai for impairment and concluded that no
impairment was required for the period ended 30 June 2025 ($nil for the period
ended 30 June 2024; $1,459 million of accumulated impairment at 30 June 2025).
The Group has not reversed any previously recognised impairments during the
period (2024: $nil). The carrying amount of the Group's investment in Bohai of
$834 million (2024: $738 million) is supported with the higher of the value in
use (VIU) and fair value less costs of disposal, i.e. the recoverable amount.
The increase to the carrying amount during 2025 reflects the Group's share of
profits of $103 million, other comprehensive loss of $30 million, net of
foreign exchange profits of $23 million and dividends received of $nil. 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.
Bohai 30.06.25 31.12.24
$million
$million
VIU 834 738
Carrying amount1 834 738
Market capitalisation2 320 338
1 The Group's 16.26 per cent 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 cash flows to the equity holders, after adjusting for
regulatory capital requirements, for a five-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 macroeconomic variables
for Mainland 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 Mainland
China; (ii) net interest income (NII) projecting interest income (primarily
the one-year Loan Prime Rate (LPR), one-year LPR, as basis) and interest
expense (Shanghai Interbank Offered Rate, three-month SHIBOR, as basis) which
reference to forecast third-party market interest rates plus/minus an observed
historical spread to 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)
expected credit loss (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 (v) statutory
tax rate of 25 per cent was applied to the taxable profit of Bohai, after
consideration of taxable and non-taxable elements, consistent with historical
reported results.
- page 96 -
• 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 Common Equity Tier 1 (CET
1) 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.
• 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 Mainland China over the
forecast period. However, the Group changed the returns forecast 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 Mainland China. As a result of this change, the year
1 total forecast non-interest income is more aligned to the recently
reported results, but due to the normalisation affect, the implied growth is
negligible.
The key assumptions used for the VIU calculation:
30.06.25 31.12.24
Post-tax discount rate(1) 10.00% 10.50%
Total balance sheet (and risk-weighted assets) growth rate 3.53% - 4.75% 3.77% - 4.52%
P/E multiple used to calculate TV 5.6x 5.6x
Interest income(2) 2.94% - 3.20% 3.00%-3.56%
Interest expense(2) 1.65% - 2.07% 1.77%-2.01%
Non-interest income - financial investments return 1.91%-2.98% 1.91%
Other non-interest income growth rate 3.53% - 4.75% 3.77%-4.52%
Expected credit losses as a percentage of customer loans(3) 0.77% 0.84%-1.36%
Expected credit losses as a percentage of financial investments measured at 0.39% 0.48%-1.26%
amortised cost and FVOCI(3)
Tax expense(4) 9.68% - 13.83% 5.4% - 14.1%
Capital maintenance ratio 8.00% 8.00%
1 Pre-tax discount rate of 15.37 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 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. At 30
June 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
4 The tax rates disclosed are the implied effective tax rates (per cent)
over the five-yr forecast period. The 30 June 2025 tax expense forecasts,
calculated from the taxable profit, considered the long-term historical
average of non-taxable income of 17.22 per cent ( 2024: 16.09 per cent) and
non-deductible expenses of 14.43 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
- page 97 -
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 assesses the
reasonableness of the assumptions used and their impact on the carrying
amount.
Sensitivities(1) basis points Key assumption increase Key assumption decrease
Increase/(decrease) Increase/(decrease)
in VIU
in VIU
$million
$million
Discount rate 100 (31) 33
Total balance sheet (and risk-weighted asset) growth rate(2) 100 - 1
P/E multiple used to calculate TV 1.0x 110 (109)
Net interest income - Scenario 1(3) 10 (10) 10
Net interest income - Scenario 2(4) Various(4) 356 (229)
Non-interest income - financial investments return 100 242 (241)
Other non-interest income growth rate 100 27 (25)
Expected credit losses as a percentage of customer loans 10 (138) 138
Expected credit losses as a percentage of financial investments measured at 10 (78) 78
amortised cost and FVOCI
Tax expense(5) 300 24 (24)
Capital maintenance ratio 50 (86) 86
1 For comparative information as of 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 (17.22 per cent) and non-deductible expenses (14.43 per
cent). Refer to footnote 4 of the key assumptions table for more details
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:
31.03.25 31.03.24
$million
$million
Total assets 249,471 243,892
Total liabilities 233,876 227,393
Operating income1 1,865 1,862
Net profit1 496 441
Other comprehensive income1 (189) 49
1 This represents six months of earnings (1 October to 31 March)
20. Assets held for sale and associated liabilities
Assets held for sale
The financial assets reported below are classified under Level 1 $15 million
(31 December 2024: $58 million), Level 2 $491 million (31 December 2024: $353
million) and Level 3 $116 million (31 December 2024: $473 million).
30.06.25 31.12.24
$million
$million
Financial assets held at fair value through profit or loss 1 5
Loans and advances to banks - 5
Equity shares 1 -
Financial assets held at amortised cost 622 884
Cash and balances at central banks 73 109
Loans and advances to banks 19 18
Loans and advances to customers 460 656(1)
Debt securities held at amortised cost 70 101
Property, plant and equipment 28 15
Other assets 30 28
681 932
1 Includes $414 million unsecured personal loan business from SC Bank India
which was disposed on 23 January 2025
- page 98 -
Liabilities held for sale
The financial liabilities reported below are classified under Level 1 Nil (31
December 2024: $89 million) and Level 2 $194 million (31 December 2024: $271
million).
30.06.25 31.12.24
$million
$million
Financial liabilities held at amortised cost 194 360
Customer accounts 194 360
Other liabilities 16 16
Provisions for liabilities and charges 5 5
215 381
21. Other liabilities
30.06.25 31.12.24
$million
$million
Financial liabilities held at amortised cost (Note 13)
Notes in circulation1 6,360 6,369
Acceptances and endorsements 4,926 5,476
Cash collateral2 12,831 15,005
Property leases 1,089 1,041
Equipment leases 110 115
Unsettled trades and other financial liabilities 22,605 16,041
47,921 44,047
Non-financial liabilities
Cash-settled share-based payments 156 131
Other liabilities 561 503
48,638 44,681
1 Hong Kong currency notes in circulation of $6,360 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
18)
2 Cash collateral includes margins received against collateralise net
derivative mark-to-market positions
22. Contingent liabilities and commitments
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.
30.06.25 31.12.24
$million
$million
Financial guarantees and other contingent liabilities
Financial guarantees, trade and irrevocable letters of credit 103,959 90,632
103,959 90,632
Commitments
Undrawn formal standby facilities, credit lines and other commitments to lend
One year and over 84,525 76,915
Less than one year 31,187 29,249
Unconditionally cancellable 77,235 76,365
192,947 182,529
Capital commitments
Contracted capital expenditure approved by the directors but not provided for 105 123
in these accounts
As set out in Note 23, the Group has contingent liabilities in respect of
certain legal and regulatory matters.
- page 99 -
23. 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
that have been 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 have alleged
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 these 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 45current 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 hearing date for the plaintiffs' appeal is awaited.
Since October 2020, four lawsuits have 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 have been brought under sections 90 and 90A of the
Financial Services and Markets Act 2000. The trial of these lawsuits is due to
start in late 2026. The claimants have alleged that their losses are in the
region of £1.56 billion (excluding any pre-judgement interest that may be
awarded). In addition to having denied any and all liability, Standard
Chartered PLC will contest claimants' alleged losses.
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 $300
million, excluding any pre-judgement interest that may be awarded. Three of
the four lawsuits commenced by the Fairfield funds' liquidators have been
dismissed and the appeals of those dismissals by the funds' liquidators are
ongoing. 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.
A number of Korean banks, including Standard Chartered Bank Korea, 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
with a notional value of approximately $900 million. Due to the performance of
the Hang Seng China Enterprise Index, several thousand Standard Chartered Bank
Korea customers have redeemed their ELS at a loss. Standard Chartered Bank
Korea has offered compensation to impacted customers. Standard Chartered Bank
Korea may also receive a regulatory penalty. A $100 million provision had been
recognised at Q1 2024 with respect to anticipated losses, $24 million of which
remains recorded on the Group's balance sheet at 30 June 2025.
In June 2025, a lawsuit was filed in the Singapore High Court against Standard
Chartered Bank (Singapore) Limited, by three companies now in liquidation that
had misappropriated funds from 1Malaysia Development Berhad (1MDB), seeking
$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 denies any and all liability and will defend against this lawsuit.
- page 100 -
With the exception of the Korea ELS matter described above and certain other
legal and regulatory matters for which provisions are recorded on the
condensed consolidated interim balance sheet under Provisions for liabilities
and charges as at 30 June 2025, 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.
24. Subordinated liabilities and other borrowed funds
30.06.25 31.12.24
USD EUR GBP NPR Total USD EUR GBP NPR Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Fixed rate subordinated debt 6,685 1,142 934 17 8,778 7,510 2,008 846 18 10,382
Redemptions and repurchases during the period 2025
Standard Chartered PLC exercised its right to redeem $1 billion 3.516 per cent
fixed rate reset subordinated debt due 2030 and EUR 1 billion 2.5 per cent
fixed rate reset subordinated notes due 2030.
Redemptions and repurchases during the year 2024
Standard Chartered PLC exercised its right to redeem $1 billion 5.2 per cent
subordinated notes 2024 and €500 million 3.125 per cent
subordinated notes 2024.
Issuance during the period 2025
There was no issuance during the period.
Issuance during the year 2024
There was no issuance during the year.
25. Share capital, other equity instruments and reserves
Number of Ordinary Ordinary Preference share capital and share premium2 Total share capital and share premium Other equity instruments
ordinary shares
share capital1
share premium
$million
$million
$million
millions
$million
$million
At 1 January 2024 2,665 1,332 3,989 1,494 6,815 5,512
Cancellation of shares including (113) (57) - - (57) -
share buyback
Additional Tier 1 equity issuance - - - - - 992
At 30 June 2024 2,552 1,275 3,989 1,494 6,758 6,504
Cancellation of shares including (127) (63) - - (63) -
share buyback
Additional Tier 1 equity issuance - - - - - 576
Additional Tier 1 redemption - - - - - (553)
Other movements3 - - - - - (25)
At 31 December 2024 2,425 1,212 3,989 1,494 6,695 6,502
Cancellation of shares including (93) (47) - - (47) -
share buyback
Additional Tier 1 equity issuance - - - - - 994
Other movements(4) - - - - - 4
At 30 June 2025 2,332 1,165 3,989 1,494 6,648 7,500
1 Issued and fully paid ordinary shares of 50 cents each
2 Includes preference share capital of $75,000
3 Relates to realised translation loss on redemption of AT1 securities of
SGD 750 million
4 Includes issuance cost
- page 101 -
Share buybacks
On 21 February 2025, the Group announced the buyback programme for a $1,500
million share buyback of its ordinary shares of $0.50 each. At H1 2025, the
total number of shares purchased of 82,248,452 representing 3.41 per cent of
the ordinary shares in issue at the beginning of the programme, for total
consideration of $1,222 million, and a further $278 million relating to
irrevocable obligation to buy back shares under the buyback programme has been
recognised. The nominal value of the shares was transferred from the share
capital to the capital redemption reserve account.
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 10.870 9.704 10.4133 117,671,362 145,286,293
February 2025 3,395,890 12.725 11.790 12.3236 41,849,427 52,884,831
March 2025 24,636,534 12.810 11.175 11.8745 292,546,496 377,784,647
April 2025 19,971,649 11.545 8.728 10.1018 201,750,555 264,351,775
May 2025 18,340,963 11.755 10.385 11.2137 205,669,905 274,781,456
June 2025 15,903,416 12.200 11.160 11.6973 186,026,636 252,365,331
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 30 June 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 rate1 Coupon payment dates2 First reset dates3 Conversion price per ordinary share5
issue costs
26 June 2020 $1,000 million $992 million 6% 26 January, 26 July 26 January 2026 $5.331
14 January 2021 $1,250 million $1,239 million 4.75% 14 January, 14 July 14 July 2031 $6.353
19 August 2021 $1,500 million $1,489 million 4.30% 19 February, 19 August 19 August 2028 $6.382
15 August 2022 $1,250 million $1,239 million 7.75% 15 February, 15 August 15 February 2028 $7.333
08 March 2024 $1,000 million $993 million 7.875% 8 March, 8 September 8 September 2030 $8.216
19 September 2024 SGD750 million $579 million 5.300% 19 March, 19 September 19 March 2030 SGD12.929
16 January 2025 $1,000 million $994 million 7.625% 16 January, 16 July 16 July 2032 $12.330
Total $7,525(4) million
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 Excludes realised translation loss ($25 million) on redemption of AT1
securities on 3 October 2024 (SGD 750 million)
5 Conversion price set at the time of pricing with reference to closing
share price and any applicable discount
- page 102 -
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 predetermined 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
1,051 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. The net proceeds of the
issuances of AT1s are used for the general purposes of the Group.
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 represent 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 (OCA) 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 earnings.
• 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.
- page 103 -
• 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.
As at 30 June 2025, the distributable reserves of Standard Chartered PLC (the
Company) were $13.9 billion (31 December 2024: $14.1 billion). Distributable
reserves of SC PLC are calculated from the Merger reserve and Retained
Earnings with consideration for restricted items in line with sections 830 and
831 of the Companies Act 2006.
Own shares
The 2004 Employee Benefit Trust (2004 Trust) is used in conjunction with the
Group's employee share schemes and other employee share-based payments (such
as upfront shares and salary shares). Computershare Trustees (Jersey) Limited
is the trustee of the 2004 Trust. Group companies fund the 2004 Trust from
time to time to enable the trustee to acquire ordinary shares in Standard
Chartered PLC to satisfy these arrangements.
Details of the shares purchased and held by the 2004 Trust are set out below.
2004 Trust
30.06.25 31.12.24 30.06.24
Shares purchased during the period 8,765,965 19,604,557 40,707
Market price of shares purchased ($million) 137.45 223 0.35
Shares held at the end of the period 1,799,177 17,589,987 1,863,677
Maximum number of shares held during the period 25,082,882 28,085,688 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.
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.
26. Related party transactions
Directors and officers
As at 30 June 2025, Standard Chartered Bank had in place a charge over $67
million (31 December 2024: $68 million) of cash assets in favour of the
independent trustee of its employer financed retirement benefit scheme.
There were no changes in the related party transactions described in the
Annual Report 2024 that could have or have had a material effect on the
financial position or performance of the Group in the period ended 30 June
2025. All related party transactions that have taken place in the period were
similar in nature to those disclosed in the Annual Report 2024.
Associate and joint ventures
The following transactions with related parties are on an arm's length basis:
30.06.25 31.12.24
$million
$million
Assets
Derivative assets 9 5
Total assets 9 5
Liabilities
Deposits 380 209
Derivative liabilities 3 4
Total liabilities 383 213
Loan commitments and other guarantees¹ 108 14
1 The maximum loan commitments and other guarantees during the period were
$108 million (31 December 2024: $14 million)
- page 104 -
27. Post balance sheet events
A share buyback for up to a maximum consideration of $1.3 billion has been
declared by the directors after 30 June 2025. This will reduce the number of
ordinary shares in issue by cancelling the repurchased shares.
The Board has recommended an interim ordinary dividend for the half year 2025
of 12.3 cents a share or $288 million.
On 26 July 2025, Standard Chartered PLC redeemed its $1.0 billion 6.00%
Resetting Perpetual Subordinated Contingent Convertible Securities in full at
100 per cent. of their principal amount together with any accrued interest.
28. Corporate governance
The directors confirm that, throughout the period, the Company has complied
with the code provisions set out in the Corporate Governance Code contained in
Appendix C1 of the Hong Kong Listing Rules. The directors also confirm that
the announcement of these results has been reviewed by the Company's Audit
Committee. The Company confirms that it has adopted a code of conduct
regarding securities transactions by directors on terms no less exacting than
the required standard set out in Appendix C3 of the Hong Kong Listing Rules
and that, having made specific enquiry of all directors, the directors of the
Company have complied with the required standards of the adopted code of
conduct throughout the period. Details of the Group's corporate governance
arrangements are set out in the Directors' Report within the 2024 Annual
Report.
As previously announced, the following changes to the composition of the Board
have taken place since 31 December 2024.
On 1 January 2025, Diane Jurgens and Jackie Hunt joined the Board Risk
Committee, David Tang stepped down from the Board Risk Committee, and David
and Jackie joined the Remuneration Committee.
On 8 May 2025, Maria Ramos commenced her role as Group Chair and Chair of the
Governance and Nomination Committee, with José Viñals stepping down from the
Board. Consequently, Maria stepped down as Senior Independent Director, Chair
of the Board Risk Committee and as a member of the Audit and Remuneration
Committees. Maria has a contract for services with the Company and will
receive a fee of £1,293,000 per annum for her services as Group Chair with
effect from 8 May 2025.
With effect from the same date, Phil Rivett, was appointed Chair of the Board
Risk Committee, subject to regulatory approval, and assumed the role
immediately on an interim basis. He was also appointed as Senior Independent
Director and succeeds Maria in both roles. Jackie was appointed as Chair of
the Audit Committee, subject to regulatory approval. Phil remains Chair of the
Audit Committee ahead of Jackie receiving regulatory approval to assume that
role. Jackie was also appointed to the Governance and Nomination Committee.
In compliance with Rule 13.51B(1) of the Hong Kong Listing Rules, the Company
confirms that, effective 30 April 2025, Bill Winters was appointed to the
board of Stripe Inc as a non-executive director after retiring as a
non-executive director of Novartis International AG on 6 March 2025. Maria
Ramos retired as a non-executive director on the board of Compagnie
Financière Richemont SA on 31 March 2025. As announced on 26 February 2025,
Robin Lawther will join the Board of Intermediate Capital Group plc as a
non-executive director on 1 November 2025.
Biographies for each of the directors and a list of the committees' membership
can be found at www.sc.com/ourpeople.
29. Statutory accounts
The information in this Half Year Report is unaudited and does not constitute
statutory accounts within the meaning of section 434 of the Companies Act
2006. This document was approved by the Board on 31 July 2025. The statutory
accounts for the year ended 31 December 2024 have been audited and delivered
to the Registrar of Companies in England and Wales. The report of the auditors
was (i) unqualified, (ii) did not include a reference to any matters to which
the auditors drew attention by way of emphasis without qualifying their
report, and (iii) did not contain a statement under sections 498(2) and 498(3)
of the Companies Act 2006.
- page 105 -
30. Cash flow statement
Adjustment for non-cash items and other adjustments included within income statement
30.06.25 30.06.24
$million
$million
Amortisation of discounts and premiums of investment securities (700) 249
Interest expense on subordinated liabilities 302 394
Interest expense on senior debt securities in issue 1,216 1,291
Pension costs for defined benefit schemes 30 27
Share-based payment costs 206 172
Impairment losses on loans and advances and other credit risk provisions 336 240
Other impairment 19 147
Gain on disposal of property, plant and equipment (6) (13)
(Gains)/loss on disposal of FVOCI and Actively Managed Certificate financial (2) 86
assets
(Gains)/loss on disposal of business(1) (242) 169
Depreciation and amortisation 544 516
Fair value changes taken to income statement (1,085) (1,034)
Foreign currency revaluation 207 (110)
Profit from associates and joint ventures (79) (144)
Movement in fair value hedges on FVOCI assets(1) (5) (191)
Other non-cash items(1) (52) (69)
Total 689 1,730
1 (Gains)/loss on disposal of business and Movement in fair value hedges on
FVOCI assets previously reported within Other non-cash items have been
re-presented as separate items
Change in operating assets
30.06.25 30.06.24
$million
$million
Net decrease in derivative financial instruments 18,128 1,370
Net increase in debt securities, treasury bills and equity shares held at fair (13,673) (25,183)
value through profit or loss
Net increase in loans and advances to banks and customers (6,856) (9,614)
Net decrease/(increase) in prepayments and accrued income 189 (227)
Net increase in other assets (26,081) (7,928)
Total (28,293) (41,582)
Change in operating liabilities
30.06.25 30.06.24
$million
$million
Net decrease in derivative financial instruments (13,117) (5,059)
Net increase in deposits from banks, customer accounts, debt securities in 62,397 17,512
issue, Hong Kong notes in circulation and short positions
Net decrease in accruals and deferred income (751) (380)
Net increase in other liabilities 1,651 8,393
Total 50,180 20,466
- page 106 -
Changes in financing activities - subordinated and senior debts
30.06.25 30.06.24
$million
$million
Subordinated debt (including accrued interest):
Opening balance 10,536 12,216
Interest paid (247) (252)
Repayment (2,175) (1,000)
Foreign exchange movements 365 (91)
Fair value hedge adjustments 202 (92)
Accrued interest and others 221 244
Closing balance 8,902 11,025
Senior debt (including accrued interest):
Opening balance 40,576 41,350
Proceeds from the issue 7,953 7,698
Interest paid (1,678) (548)
Repayment (7,040) (7,191)
Foreign exchange movements 914 (292)
Fair value hedge adjustments 275 (92)
Accrued interest and others 1,617 1,612
Closing balance 42,617 42,537
Senior debt is presented as part of debt securities in issue in the condensed
consolidated interim balance sheet.
- page 107 -
Other supplementary information
Supplementary financial information
Insured and uninsured deposits
The Group operates and provides services to customers across many countries
and insured deposit is determined on the basis of limits enacted within local
regulations.
30.06.25 31.12.24
Insured deposits Uninsured deposits Total Insured deposits Uninsured deposits T
$million o
t
a
l
$
m
i
l
l
i
o
n
Bank deposits Customer accounts Bank deposits Customer accounts Bank deposits Customer accounts Bank deposits Customer accounts
$million
$million
$million
$million
$million
$million
$million
$million
Current accounts 10 18,339 25,043 168,286 211,678 8 15,596 19,844 152,101 187,549
Savings deposits - 34,549 - 98,419 132,968 - 31,977 - 86,579 118,556
Time deposits 29 32,486 7,229 189,415 229,159 - 28,417 6,717 170,752 205,886
Other deposits - 112 9,978 40,526 50,616 - 104 9,393 37,737 47,234
Total 39 85,486 42,250 496,646 624,421 8 76,094 35,954 447,169 559,225
UK and non-UK deposits
The following table summarises the split of Bank and Customer deposits into UK
and Non-UK deposits for respective account lines based on the domicile or
residence of the clients.
30.06.25 31.12.24
UK deposits Non-UK deposits Total UK deposits Non-UK deposits T
$million o
t
a
l
$
m
i
l
l
i
o
n
Bank deposits Customer accounts Bank deposits Customer accounts Bank deposits Customer accounts Bank deposits Customer accounts
$million
$million
$million
$million
$million
$million
$million
$million
Current accounts 554 8,348 24,499 178,277 211,678 544 7,734 19,308 159,963 187,549
Savings deposits - 301 - 132,667 132,968 - 145 - 118,411 118,556
Time deposits 516 8,650 6,742 213,251 229,159 315 7,731 6,402 191,438 205,886
Other deposits 2,262 11,437 7,716 29,201 50,616 2,342 12,744 7,051 25,097 47,234
Total 3,332 28,736 38,957 553,396 624,421 3,201 28,354 32,761 494,909 559,225
Contractual maturity of Loans, Investment securities and Deposits
30.06.25
Loans and advances Loans and advances to customers Investment securities - treasury and other eligible bills Investment securities - Debt securities Investment securities - Equity shares Bank deposits Customer accounts
to banks
$million
$million
$million
$million
$million
$million
$million
One year or less 64,441 178,323 52,942 46,771 - 35,416 520,025
Between one and five years 13,108 71,408 19 86,009 - 6,870 58,782
Between five and ten years 1,645 22,390 - 27,935 - 2 1,487
Between ten years and fifteen years 59 13,369 - 5,450 - - 1,216
More than fifteen years and undated 91 65,128 - 31,720 8,420 - 623
Total 79,344 350,618 52,961 197,885 8,420 42,288 582,133
Total amortised cost and FVOCI exposures 42,386 286,731
Of which: Fixed interest rate exposures 35,638 151,270
Of which: Floating interest rate exposures 6,748 135,461
- page 108 -
31.12.24
Loans and advances to banks Loans and advances to customers $million Investment securities - treasury and other eligible bills Investment securities - Debt securities Investment securities - Equity shares Bank deposits Customer accounts
$million
$million
$million
$million
$million
$million
One year or less 66,448 181,863 41,966 47,959 - 29,678 463,566
Between one and five years 12,122 63,006 41 74,197 - 6,281 57,062
Between five and ten years 1,680 21,139 - 23,319 - 3 849
Between ten years and fifteen years 71 13,236 - 5,876 - - 1,217
More than fifteen years and undated 239 60,313 - 26,743 6,480 - 569
Total 80,560 339,557 42,007 178,094 6,480 35,962 523,263
Total amortised cost and FVOCI exposures 43,593 281,032
Of which: Fixed interest rate exposures 35,383 153,575
Of which: Floating interest rate exposures 8,210 127,457
Maturity and yield of debt securities, additional tier one and other eligible
bills held at amortised cost
One year or less Between one and Between five and More than ten years Total
five years
ten years
$million Yield $million Yield $million Yield $million Yield $million Yield
%
%
%
%
%
Central and other government agencies
- US 2,096 1.42 9,055 1.91 5,800 1.73 4,267 2.62 21,218 1.95
- UK 77 0.50 618 2.06 49 0.88 - - 744 1.82
- Other 4,719 2.63 9,457 2.69 3,350 3.04 36 6.77 17,562 2.75
Other debt securities 1,420 6.90 2,376 6.09 6,460 4.83 5,430 5.14 15,686 5.32
At 30 June 2025 8,312 3.03 21,506 2.72 15,659 3.28 9,733 4.04 55,210 3.16
One year or less Between one and Between five and More than ten years Total
five years
ten years
$million Yield $million Yield $million Yield $million Yield $million Yield
%
%
%
%
%
Central and other government agencies
- US 1,864 1.53 9,607 1.98 5,187 1.88 4,353 2.76 21,011 2.08
- UK 192 1.70 684 2.07 44 0.88 - - 920 1.93
- Other 3,081 3.20 11,454 3.39 2,932 3.93 25 7.55 17,492 3.46
Other debt securities 1,687 6.21 2,676 6.30 4,620 4.86 6,731 5.41 15,714 5.49
At 31 December 2024 6,824 3.45 24,421 3.12 12,783 3.42 11,109 4.38 55,137 3.48
The maturity distributions are presented in the above table on the basis of
contractual maturity dates. The weighted average yield for each range of
maturities is calculated by dividing the annualised interest income for the
year by the book amount of debt securities at that date.
Average balance sheets and yields
Average balance sheets and yields
For the purposes of calculating net interest margin, the following adjustments
are made:
• reported net interest income is adjusted to remove interest expense on
amortised cost liabilities used to provide funding to the Global Markets
business
• financial instruments measured at fair value through profit or loss are
classified as non-interest earning
• premiums on financial guarantees purchased to manage interest-earning
assets are treated as interest expense. In the Group's view, this results in a
net interest margin that is more reflective of banking book performance.
The following tables set out the average balances and yields for the Group's
assets and liabilities for the periods ended 30 June 2025 and 30 June 2024
under the revised definition of net interest margin. For the purpose of these
tables, average balances have been determined on the basis of daily balances,
except for certain categories, for which balances have been determined less
frequently. The Group does not believe that the information presented in these
tables would be significantly different had such balances been determined on a
daily basis.
- page 109 -
Average assets
6 months ended 30.06.25
Average non-interest- earning balance Average Interest income Gross yield Gross yield
$million
interest- earning balance
$million
interest-earning balance
total balance
$million
%
%
Cash and balances at central banks 10,239 57,677 1,036 3.62 3.08
Gross loans and advances to banks 44,580 46,672 1,109 4.79 2.45
Gross loans and advances to customers 70,108 288,614 7,276 5.08 4.09
Impairment provisions against loans and advances to banks and customers - (5,300) - - -
Investment securities - treasury and other eligible bills 22,343 27,494 621 4.55 2.51
Investment securities - debt securities 70,219 126,228 2,443 3.90 2.51
Investment securities - equity shares 6,817 - - - -
Property, plant and equipment and intangible assets 6,239 - - - -
Prepayments, accrued income and other assets 140,721 - - - -
Investment associates and joint ventures 1,065 - - - -
Total average assets 372,331 541,385 12,485 4.65 2.76
Adjustment for trading book funding cost and others 256
Total average assets 372,331 541,385 12,741 4.75 2.81
6 months ended 30.06.24
Average non-interest earning balance Average Interest income Gross yield interest- earning balance Gross yield
$million
interest- earning balance
$million
%
total balance
$million
%
Cash and balances at central banks 10,244 59,865 1,360 4.57 3.90
Gross loans and advances to banks 39,425 41,801 1,052 5.06 2.60
Gross loans and advances to customers 56,445 285,940 8,259 5.81 4.85
Impairment provisions against loans and advances to banks and customers - (5,501) - - -
Investment securities - treasury and other eligible bills 13,364 28,990 807 5.60 3.83
Investment securities - debt securities 53,058 132,693 2,716 4.12 2.94
Investment securities - equity shares 4,545 - - - -
Property, plant and equipment and intangible assets 6,263 - - - -
Prepayments, accrued income and other assets 120,866 - - - -
Investment associates and joint ventures 1,052 - - - -
Total average assets 305,262 543,788 14,194 5.25 3.36
Adjustment for trading book funding cost and others 371
Total average assets 305,262 543,788 14,565 5.39 3.45
Average liabilities
6 months ended 30.06.25
Average non-interest bearing balance Average Interest Rate paid interest-bearing balance Rate paid
$million
interest-bearing balance
expense
%
total balance
$million
$million
%
Deposits by banks 17,730 22,344 326 2.94 1.64
Customer accounts:
Current accounts 42,054 137,384 1,945 2.85 2.19
Savings deposits - 122,554 875 1.44 1.44
Time deposits 20,779 191,578 4,083 4.30 3.88
Other deposits 39,189 7,154 150 4.23 0.65
Debt securities in issue 12,153 71,832 1,727 4.85 4.15
Accruals, deferred income and other liabilities 166,756 1,303 33 5.11 0.04
Subordinated liabilities and other borrowed funds - 9,907 302 6.15 6.15
Non-controlling interests 389 - - - -
Shareholders' funds 50,610 - - - -
349,660 564,056 9,441 3.38 2.08
Adjustment for trading book funding cost and others (2,199)
Total average liabilities and shareholders' funds 349,660 564,056 7,242 2.59 1.60
- page 110 -
6 months ended 30.06.24
Average non-interest bearing balance Average Interest Rate paid interest-bearing balance Rate paid
$million
interest-bearing balance
expense
%
total balance
$million
$million
%
Deposits by banks 15,374 21,300 441 4.16 2.42
Customer accounts:
Current accounts 39,666 128,079 2,245 3.52 2.69
Savings deposits 0 113,627 1,204 2.13 2.13
Time deposits 19,131 186,811 4,642 5.00 4.53
Other deposits 36,403 11,734 299 5.12 1.25
Debt securities in issue 11,642 64,678 1,794 5.58 4.73
Accruals, deferred income and other liabilities 138,565 0 0 - -
Subordinated liabilities and other borrowed funds 0 11,379 394 6.96 6.96
Non-controlling interests 389 0 0 - -
Shareholders' funds 50,272 0 0 - -
311,442 537,608 11,019 4.12 2.61
Adjustment for trading book funding cost and others (1,816)
Total average liabilities and shareholders' funds 311,442 537,608 9,203 3.44 2.18
Net interest margin
6 months ended 30.06.25 6 months ended 30.06.24
$million
$million
Interest income (reported) 12,485 14,194
Adjustment for trading book funding cost and others1 256 371
Interest income adjusted for trading book funding cost and others 12,741 14,565
Average interest-earning assets 541,385 543,788
Gross yield (%) 4.75 5.39
Interest expense (reported) 9,441 11,019
Adjustment for trading book funding cost and others (2,199) (1,816)
Interest expense adjusted for trading book funding cost and others 7,242 9,203
Average interest-bearing liabilities 564,056 537,608
Rate paid (%) 2.59 3.44
Net yield (%) 2.16 1.95
Adjusted net interest income(1) 5,499 5,362
Net interest margin (%) 2.05 1.98
1 Adjusted net interest income has been re-presented in line with the RNS
on Re-Presentation of Financial Information issued on 2 April 2025 to reflect
the reclassification of funding cost mismatches to non-net interest income
(non NI)I. Adjusted NIL is reported NIL less trading book funding cost,
treasury currency management activities, cash collateral and prime service
- page 111 -
Additional items
A. Our Fair Pay Charter
Our Fair Pay Charter brings all People Leaders and colleagues to a shared
understanding of our fundamental principles around reward which are key
considerations in our decision-making. The four focus areas in the Charter -
Equal pay; Purpose-led; Competitive opportunities; Performance-driven - drive
our remuneration policies and processes, ensuring equity and transparency are
at the forefront of decision-making, and that sustainable high performance,
delivered in line with our valued behaviours, is recognised and rewarded
appropriately. Our 2024 Diversity, Equality and Inclusion Impact Report gives
further detail on our Fair Pay Charter and is available on our Group website.
B. Group share plans
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
Long-Term Incentive Plan (LTIP) awards Long-Term Incentive Plan (LTIP) awards are granted with a vesting period of
between three to seven years (with a further 12 month retention period post
vesting), subject to performance measures which have previously included:
• relative total shareholder return (TSR);
• return on tangible equity (RoTE) (with a Common Equity Tier 1 (CET1)
underpin); and
• strategic measures (including targets set for sustainability linked to
business strategy)
Each measure is assessed independently over a three-year period. All LTIP
awards have an individual conduct gateway requirement that results in the
award lapsing if not met, and the outcome of LTIP awards granted from 2025
onwards are subject to a risk and control modifier.
Deferred shares Used to deliver:
• the deferred portion of year-end variable remuneration, in line with
both market practice and regulatory requirements. These awards vest in
instalments on anniversaries of the award date specified at the time of grant.
This enables the Group to meet regulatory requirements relating to deferral
levels, and is in line with market practice.
• replacement buyout 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 buyouts, and is in line
with market practice.
Deferred share awards have various vesting periods and are not subject to any
performance measures.
Under the 2021 Plan and 2011 Plan, no grant price is payable to receive an
award. The remaining life of the 2021 Plan during which new awards can be made
is six years. The 2011 Plan has expired and no further awards can be granted
under this plan.
All employee share plans
The Standard Chartered 2023 Sharesave Plan was approved by shareholders in May
2023, replacing the Standard Chartered 2013 Sharesave Plan. Under the 2023
Sharesave Plan, employees may open a savings contract. Within a maturity
period of six months after the third anniversary, employees may purchase
ordinary shares in the Company at a discount of up to 20 per cent on the share
price at the date of invitation. The vesting period of the Sharesave options
is three years. There are no performance measures attached to options granted
under the 2023 Sharesave Plan and no grant price is payable to receive an
option.
In some countries in which the Group operates, it is not possible to deliver
shares under the 2023 Sharesave Plan, typically due to securities laws and
regulatory restrictions. In these countries, where possible, the Group offers
an equivalent cash-based plan to its employees.
Valuation of share awards
Details of the valuation models used in determining the fair values of share
awards granted under the Group's share plans are detailed in the Group's 2024
Annual Report.
- page 112 -
Information on options and awards granted and available for grant under our share plans
As at 1 January 2025 and 30 June 2025, the share awards outstanding under our
discretionary and Sharesave plans adopted by Standard Chartered PLC and its
subsidiaries represented 5.1 per cent and 5.3 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 period
were 123,504,051 and 124,710,668 respectively.
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 period divided by the weighted average number of
Standard Chartered PLC shares in issue at the end of the period is 0.7 per
cent.
Reconciliation of share award movements for the year to 30th June 2025
LTIP1 Deferred/Buy-out Sharesave5 Weighted average Sharesave exercise price
awards1
(£)
Outstanding on 1 January 2025 9,640,693 51,693,726 20,565,111 5.48
Granted2,3,4 2,159,737 15,012,117 - -
Lapsed6 (324,419) (286,441) (568,281) 5.61
Vested/Exercised (1,272,072) (19,184,061) (1,138,037) 3.77
Outstanding on 30 June 2025 10,203,939 47,235,341 18,858,793 5.57
Total number of securities available for issue under the plan 10,203,939 47,235,341 18,858,793 5.57
Percentage of the issued shares this represents as of 30 June 2025 0.44 2.03 0.81
Exercisable as of 30 June 2025 - 102,277 60,887 5.18
Range of exercise prices (£) - - 3.67 - 6.10
Intrinsic value of vested but not exercised options ($ million) 0.00 1.69 0.58
Weighted average contractual remaining life (years) 7.65 8.42 2.20
Weighted average share price for awards exercised during the period (£) 11.78 11.54 11.17
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 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 awards were granted was
£11.58. 141,397 (Deferred shares) notional dividend uplift 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 awards were granted was
£10.675
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 30 June 2025, the exercise price of
deferred/ Buy-out shares options was nil
5 All Sharesave awards are in the form of options. The exercise price of
Sharesave options exercised was £ 6.10 for options granted in 2024, £ 5.88
for options granted in 2023, £4.23 for options granted in 2022 and £3.67 for
options granted in 2021
6 No options or share awards were cancelled in the period
C. Group Chair and independent non-executive directors' interests in ordinary
shares at 30 June 20251,2
Shares beneficially Shares beneficially
held as of
held as of
31 December 2024
30 June
2025
Chair
M Ramos3 2,000 2,000
Independent non-executive directors
S M Apte 2,000 2,000
J Hunt 2,000 2,000
D E Jurgens 8,888 8,888
R A Lawther, CBE 2,000 2,000
L Leong 13,369 13,369
P G Rivett 2,128 2,128
D Tang 2,000 2,000
J Viñals4 45,000 -
L Y Yueh, CBE 2,000 2,000
1 Independent non-executive directors are required to hold shares with a
nominal value of $1,000. All the directors have met this requirement
2 The beneficial interests of directors and their related parties in the
ordinary shares of the Company are set out above. The directors do not have
any non-beneficial interests in the Company's shares. None of the directors
used ordinary shares as collateral for any loans. No director had either i) an
interest in the Company's preference shares or loan stocks of any subsidiary
or associated undertaking of the Group or ii) any corporate interests in the
Company's ordinary shares. All figures as of 30 June 2025
3 Maria Ramos was appointed as Group Chair on 8 May 2025
4 J Viñals retired from the Board on 8 May 2025
- page 113 -
D. Executive directors' interests in ordinary shares at 30 June 2025
Scheme interests awarded, exercised and lapsed during the period
Employees, including executive directors, are not permitted to engage in any
personal investment strategies with regards to their Company shares, including
hedging against the share price of Company shares. The main features of the
outstanding shares and long-term incentive plan (LTIP) awards are summarised
below:
LTIP award1 Performance measures Performance outcome
2018-2020 33% Return on equity (RoE) 26%
33% Relative TSR
33% Strategic
2019-2021 33% RoTE 23%
33% Relative TSR
33% Strategic
2020-2022 36.8%
2021-2023 30% RoTE 57%
30% Relative TSR
15% Sustainability
25% Strategic
2022-2024 88%
2023-2025 To be assessed at the end of 2025
2024-2026 30% RoTE To be assessed at the end of 2026
30% Relative TSR
25% Environmental, Social and
Governance (ESG)
15% Other strategic
2025-2027 40% RoTE To be assessed at the end of 2027
40% Relative TSR
20% Sustainability
1 LTIP awards are delivered in five equal tranches
- page 114 -
The following table shows the changes in share interests.
Date of grant Changes in interests from 1 January to 30 June 2025
Share award price (£) At Awarded1,2 Vested3 Lapsed At Performance Vesting date
1 January
30 June
period end
Bill Winters1
2018-2020 LTIP 9 Mar 2018 7.782 28,179 - 28,179 - - 9 Mar 2021 9 Mar 2025
2019-2021 LTIP 11 Mar 2019 6.105 30,604 - 30,604 - - 11 Mar 2022 11 Mar 2025
30,605 - - - 30,605 11 Mar 2026
2020-2022 LTIP 9 Mar 2020 5.196 59,282 - 59,282 - - 9 Mar 2023 9 Mar 2025
59,282 - - - 59,282 9 Mar 2026
59,282 - - - 59,282 9 Mar 2027
2021-2023 LTIP 15 Mar 2021 4.901 85,853 - 85,853 - 15 Mar 2024 15 Mar 2025
85,853 - - - 85,853 15 Mar 2026
85,853 - - - 85,853 15 Mar 2027
85,853 - - - 85,853 15 Mar 2028
2022-2024 LTIP 14 Mar 2022 4.876 151,386 - 133,219 18,167 14 Mar 2025 14 Mar 2025
151,386 - - 18,167 133,219 14 Mar 2026
151,386 - - 18,167 133,219 14 Mar 2027
151,386 - - 18,167 133,219 14 Mar 2028
151,388 - - 18,167 133,221 14 Mar 2029
2023-2025 LTIP 13 Mar 2023 7.398 101,209 - - - 101,209 13 Mar 2026 13 Mar 2026
101,209 - - - 101,209 13 Mar 2027
101,209 - - - 101,209 13 Mar 2028
101,209 - - - 101,209 13 Mar 2029
101,209 - - - 101,209 13 Mar 2030
2024-2026 LTIP 12 Mar 2024 6.600 123,275 - - - 123,275 12 Mar 2027 12 Mar 2027
123,275 - - - 123,275 12 Mar 2028
123,275 - - - 123,275 12 Mar 2029
123,275 - - - 123,275 12 Mar 2030
123,278 - - - 123,278 12 Mar 2031
2025-2027 LTIP 12 May 2025 10.675 - 163,242 - - 163,242 31 Dec 2027 12 May 2028
- 163,242 - - 163,242 12 May 2029
- 163,242 - - 163,242 12 May 2030
- 163,242 - - 163,242 12 May 2031
- 163,245 - - 163,245 12 May 2032
Diego De Giorgi1
2024-2026 LTIP 12 Mar 2024 6.600 80,812 - - - 80,812 12 Mar 2027 12 Mar 2027
80,812 - - - 80,812 12 Mar 2028
80,812 - - - 80,812 12 Mar 2029
80,812 - - - 80,812 12 Mar 2030
80,814 - - - 80,814 12 Mar 2031
2025-2027 LTIP 12 May 2025 10.675 - 90,394 - - 90,394 31 Dec 2027 12 May 2028
- 90,394 - - 90,394 12 May 2029
- 90,394 - - 90,394 12 May 2030
- 90,394 - - 90,394 12 May 2031
- 90,395 - - 90,395 12 May 2032
1 The unvested LTIP awards held by Bill and Diego are conditional rights.
They do not have to pay towards these awards. Under these awards, shares are
delivered on vesting or as soon as practicable thereafter
2 For the 2025-2027 LTIP awards granted to Bill and Diego on 12 May 2025,
the values granted were: Bill: £7.4 million; Diego: £4.1 million. The number
of shares awarded in respect of the LTIP took into account the lack of
dividend equivalents (calculated by reference to market consensus dividend
yield) such that the overall value of the award was maintained. Performance
measures apply to 2025-2027 LTIP awards. The closing price on the day before
grant was £10.675
3 Shares (before tax) were delivered to Bill from the vesting element of
LTIP awards. The closing share price on the day before the shares were
delivered were as follows:
• 10 March 2025: Shares in respect of the 2018-2020 LTIP and 2020-2022
LTIP. Previous day closing share price: £12.150
• 11 March 2025: Shares in respect of the 2019-2021 LTIP. Previous day
closing share price: £11.705
• 17 March 2025: Shares in respect of the 2021-2023 LTIP. Previous day
closing share price: £11.765
• 19 March 2025: Shares in respect of the 2022-2024 LTIP. Previous day
closing share price: £12.060
4 The weighted average closing price for Bill's awards that vested during
the period was £11.976
At 30 June 2025, none of the directors had registered an interest or short
position in the shares, underlying shares or debentures of the Company or any
of its associated corporations that was required to be recorded pursuant to
section 352 of the Securities and Futures Ordinance, or as otherwise notified
to the Company and the Hong Kong Stock Exchange pursuant to the Model Code for
Securities Transactions by Directors of Listed Issuers.
- page 115 -
Shareholdings and share interests
The following table summarises the executive directors' shareholdings and
share interests.
Shares held beneficially1,2,3 Unvested share awards not subject to performance measures Total shares counting towards shareholding requirement Shareholding requirement Salary3 Value of shares counting towards shareholding requirement as a percentage Unvested share awards subject to performance measures (before tax)
(net of tax)4,5
of salary1
Bill Winters 3,180,013 497,989 3,678,002 500% salary £1,500,000 2,960% 1,938,636
Diego De Giorgi 100,908 - 100,908 400% salary £1,100,000 111% 856,033
1 All figures are as of 30 June 2025 unless stated otherwise. The closing
share price on 30 June 2025 was £12.07. No director had either: (i) an
interest in Standard Chartered PLC's preference shares or loan stocks of any
subsidiary or associated undertaking of the Group; or (ii) any corporate
interests in Standard Chartered PLC's ordinary shares
2 The beneficial interests of directors and connected persons in the
ordinary shares of the Company are set out above. The executive directors do
not have any non-beneficial interest in the Company's shares. Neither of the
executive directors used ordinary shares as collateral for any loans
3 The shares held beneficially include shares awarded to deliver the share
element of executive directors' salary prior to 1 April 2025, when part of
salary was delivered in shares. Since this date, all salary is delivered in
cash
4 88 per cent of the 2022-2024 LTIP award is no longer subject to
performance measures due to achievement against 2022-2024 RoTE, relative TSR
and strategic measures
5 As Bill and Diego are UK taxpayers, 47 per cent tax is assumed to apply
to other unvested share awards (marginal combined PAYE rate of income tax at
45 per cent and employee National Insurance contributions at 2 per cent) -
rates may change
E. Share price information
The middle market price of an ordinary share at the close of business on 30
June 2025 was 1,207.0 pence. The share price range during the first half of
2025 was 878.8 pence to 1,269.0 pence (based on the closing middle market
prices).
F. Free float percentage
At 30 June 2025, the free float percentage of voting rights attached to all of
the Company's listed ordinary and preference shares in issue was approximately
99.87 per cent.
For information on the outstanding Fixed Rate Resetting Perpetual Subordinated
Contingent Convertible AT1 securities
issued by Standard Chartered PLC and the rights attached to them and further
information on our website at
www.sc.com/en/investors/credit-ratings-fixed-income/capital-securities-in-issue/.
G. 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 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. The Company is,
however, required to file with The Stock Exchange of Hong Kong Limited any
disclosure of interests made in the UK.
H. Code for Financial Reporting Disclosures
The UK Finance Code for Financial Reporting Disclosure (the Code) sets out
five disclosure principles together with supporting guidance. The principles
are that UK banks will: provide high-quality, meaningful and decision-useful
disclosures; review and enhance their financial instrument disclosures for key
areas of interest; keep under review and commit to ongoing re-evaluation and
enhancement of financial instrument disclosures for key areas of interest,
acknowledging the importance of good practice recommendations and similar
guidance issued from time to time by relevant regulators and standard-setters
and assessing the applicability and relevance of such guidance to disclosures;
seek to enhance the comparability of financial statement disclosures across
the UK banking sector; and clearly differentiate in their annual reports
between information that is audited and information that is unaudited.
The Group's interim financial statements for the six months ended 30 June 2025
have been prepared in accordance with the Code's principles.
- page 116 -
I. Employees
The details regarding our remuneration policies, bonus schemes and training
schemes have not materially changed from our 2024 Annual Report and Accounts
and we will be updating these in the 2025 Annual Report.
Employee headcount
The following table summarises the number of employees within the Group:
Business1 Support services2 Total3,4
At 30 June 2025 29,613 51,082 80,695
At 31 December 2024 29,563 51,582 81,145
1 Business is defined as employees directly under the remit of the
businesses
2 Support services include employees who support businesses' operations or
investments where costs are fully recharged to the businesses. Decrease in
support services H1 in 2025 is mainly due to decrease in technology and
operations support resources as tighter hiring controls are in place and we
continue to review our workforce composition and skills'
3 Excludes 498 employees (headcount) from Digital Ventures entities
(Appro, Audax, Cashenable/Labamu, Furaha, Letsbloom, Libeara, MyZoi, Qatalyst,
Solv Ghana, Solv Kenya, TASConnect, Zodia Custody, Zodia Markets)
4 Includes employees operating in discontinued/restructured businesses
- page 117 -
Shareholder information
Dividend and interest payment dates
Ordinary shares 2025 interim dividend (cash only)
Results and dividend announced 31 July 2025
Ex-dividend date 7 (UK) 6 (HK) August 2025
Record date 8 August 2025
Last date to amend currency election instructions for cash dividend* 5 September 2025
Dividend payment date 30 September 2025
* in either US dollars, sterling, or Hong Kong dollars
2025 final dividend (provisional only)
Results and dividend announcement date 24 February 2026
Preference shares Second half-yearly dividend
7 3/8 per cent non-cumulative irredeemable preference shares of £1 each 1 October 2025
8 ¼ per cent non-cumulative irredeemable preference shares of £1 each 1 October 2025
6.409 per cent non-cumulative preference shares of $5 each 30 July 2025 and 30 October 2025
7.014 per cent non-cumulative preference shares of $5 each 30 July 2025
Further details regarding dividends can be found on our website at
www.sc.com/shareholders.
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 paid at the same time as everyone else.
ShareCare is free to join and there are no annual fees to pay. If you would
like to receive more information, please visit our website at
www.sc.com/sharecare or contact the shareholder helpline on 0370 702 0138.
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. Further information can be
obtained from the Company's registrars or from ShareGift on 020 7930 3737 or
from
www.sharegift.org.
Bankers' Automated Clearing System (BACS)
Dividends can be paid straight into your bank or building society account.
Please register online at www.investorcentre.co.uk or contact our registrar
for a mandate form.
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
www.investorcentre.co.uk/contactus. 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. You
can check your shareholding at: computershare.com/hk/investors.
- page 118 -
Chinese translation
If you would like a Chinese version of this Half Year Report, please contact:
Computershare Hong Kong Investor Services Limited at 17M Floor, Hopewell
Centre, 183 Queen's Road East, Wan Chai, Hong Kong.
本半年報告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 a dispute between any translation and
the English version of this Half Year Report, the English text shall prevail.
Electronic communications
If you hold your shares on the UK register and in future you would like to
receive the Half Year Report electronically rather than by post, please
register online at: investorcentre.co.uk. Click on 'register now' and follow
the instructions. You will need to have your shareholder or ShareCare
reference number to hand. You can find this on your share certificate or
ShareCare statement. Once you have registered and confirmed your email
communication preference, you will receive future notifications via email
enabling you to submit your proxy vote online. In addition, as a member of
Investor Centre, you will be able to manage your shareholding online and
change your bank mandate or address information.
- page 119 -
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.
Non-IFRS performance measures and alternative performance measures
This document may contain: (a) financial measures and ratios not specifically
defined under: (i) International Financial Reporting Standards (IFRS)
(Accounting Standards) as adopted by the European Union; or (ii) UK-adopted
International Accounting Standards (IAS); and/or (b) alternative performance
measures as defined in the European Securities and Market Authority
guidelines. Such measures may exclude certain items which management believes
are not representative of the underlying performance of the business and which
distort period-on-period comparison. These measures are not a substitute for
IAS or IFRS measures and are based on a number of assumptions that are subject
to uncertainties and change. Please refer to Standard Chartered PLC's Annual
Report and the financial statements of the Group for further information,
including reconciliations between the underlying and reported measures.
Financial instruments
Nothing in this document shall constitute, in any jurisdiction, an offer or
solicitation to sell or purchase any securities or other financial
instruments, nor shall it constitute a recommendation or advice in respect of
any securities or other financial instruments or any other matter.
- page 120 -
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.
- page 121 -
Glossary
Absolute financed emissions
A measurement of our attributed share of our clients' greenhouse gas
emissions.
Additional Tier 1 capital (AT1)
Additional Tier 1 capital consists of instruments other than Common Equity
Tier 1 that meet the Capital Requirements Regulation (as it forms part of UK
domestic law) criteria for inclusion in Tier 1 capital.
Additional value adjustment (AVA)
See Prudent valuation adjustment.
Advanced Internal Rating Based (AIRB) approach
The AIRB approach under the Basel framework is used to calculate credit risk
capital based on the Group's own estimates of prudential parameters.
Alternative performance measures (APM)
A financial measure of historical or future financial performance, financial
position, or cash flows, other than a financial measure defined or specified
in the applicable financial reporting framework.
Assets under management (AUM)
Total market value of assets such as deposits, securities and funds held by
the Group on behalf of the clients.
Associate of South East Asian Nations (ASEAN)
Includes the Group's operations in Brunei, Indonesia, Malaysia, Philippines,
Singapore, Thailand and Vietnam.
Basel III
The global regulatory standards on capital adequacy and liquidity developed by
the Basel Committee on Banking Supervision (BCBS) in response to the financial
crisis of 2007-2009. It was originally issued in December 2010 and finalised
in December 2017. The standards have been in the process of being phased into
UK policy since 2022.
Basel Committee on Banking Supervision (BCBS)
A forum on banking supervisory matters which develops global supervisory
standards for the banking industry. Its members are officials from 45 central
banks or prudential supervisors from 27 countries and territories.
Basic earnings per share (EPS)
Represents earnings divided by the basic weighted average number of shares.
Basis point (bps)
One hundredth of a per cent (0.01 per cent); 100 basis points is 1 per cent.
Capital-lite income
Income derived from products with low risk-weighted asset consumption or
products which are non-funding in nature.
CRD or Capital Requirements Directive
A capital adequacy legislative package adopted by the Prudential Regulation
Authority. CRD comprises the Capital Requirements Directive and the UK
onshored Capital Requirements Regulation (CRR). The package implements the
Basel III framework together with transitional arrangements for some of its
requirements. CRD IV came into force on 1 January 2014. The EU CRR II and CRD
V amending the existing package came into force in June 2019 with most changes
starting to apply from 28 June 2021. Only those parts of the EU CRR II that
applied on or before 31 December 2020, when the UK was a member of the EU,
have been implemented. The PRA recently finalised the UK's version of the CRR
II for implementation on 1 January 2022.
Capital resources
Sum of Tier 1 and Tier 2 capital after regulatory adjustments.
- page 122 -
CGU or Cash-generating unit
The smallest identifiable group of assets that generates cash inflows that are
largely independent of the cash inflows from other assets or groups of assets.
Cash shortfall
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.
Clawback
An amount an individual is required to pay back to the Group, which has to be
returned to the Group under certain circumstances.
Commercial real estate
Includes office buildings, industrial property, medical centres, hotels,
malls, retail stores, shopping centres, farm land, multi-family housing
buildings, warehouses, garages, and industrial properties. Commercial real
estate loans are those backed by a package of commercial real estate assets.
Common Equity Tier 1 capital (CET1)
Common Equity Tier 1 capital consists of the common shares issued by the Group
and related share premium, retained earnings, accumulated other comprehensive
income and other disclosed reserves, eligible non-controlling interests and
regulatory adjustments required in the calculation of Common Equity Tier 1.
CET1 ratio
A measure of the Group's CET1 capital as a percentage of risk-weighted assets.
Contractual maturity
Contractual maturity refers to the final payment date of a loan or other
financial instrument, at which point all the remaining outstanding principal
and interest is due to be paid.
Countercyclical capital buffer
The countercyclical capital buffer (CCyB) is part of a set of macroprudential
instruments, designed to help counter procyclicality in the financial system.
CCyB as defined in the Basel III standard provides for an additional capital
requirement of up to 2.5 per cent of risk-weighted assets in a given
jurisdiction. The Bank of England's Financial Policy Committee has the power
to set the CCyB rate for the United Kingdom. Each bank must calculate its
'institution-specific' CCyB rate, defined as the weighted average of the CCyB
rates in effect across the jurisdictions in which it has credit exposures. The
institution-specific CCyB rate is then applied to a bank's total risk-weighted
assets.
Counterparty credit risk
The risk that a counterparty defaults before satisfying its obligations under
a derivative, a securities financing transaction (SFT) or a similar contract.
Credit conversion factor (CCF)
An estimate of the amount the Group expects a customer to have drawn further
on a facility limit at the point of default. This is either prescribed by CRR
or modelled by the bank.
Credit default swaps (CDS)
A credit derivative is an arrangement whereby the credit risk of an asset (the
reference asset) is transferred from the buyer to the seller of protection. A
credit default swap is a contract where the protection seller receives premium
or interest-related payments in return for contracting to make payments to the
protection buyer upon a defined credit event. Credit events normally include
bankruptcy, payment default on a reference asset or assets, or downgrades by a
rating agency.
Credit institutions
An institution whose business is to receive deposits or other repayable funds
from the public and to grant credits for its own account.
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Credit risk mitigation
Credit risk mitigation is a process to mitigate potential credit losses from
any given account, customer or portfolio by using a range of tools such as
collateral, netting agreements, credit insurance, credit derivatives and
guarantees.
Credit valuation adjustments (CVA)
An adjustment to the fair value of derivative contracts that reflects the
possibility that the counterparty may default such that the Group would not
receive the full market value of the contracts.
Customer accounts
Money deposited by all individuals and companies which are not credit
institutions including securities sold under repurchase agreement (see
repo/reverse repo). Such funds are recorded as liabilities in the Group's
balance sheet under customer accounts.
Days past due
One or more days that interest and/or principal payments are overdue based on
the contractual terms.
Debit valuation adjustment (DVA)
An adjustment to the fair value of derivative contracts that reflects the
possibility that the Group may default and not pay the full market value of
contracts.
Debt securities
Debt securities are assets on the Group's balance sheet and represent
certificates of indebtedness of credit institutions, public bodies or other
undertakings, excluding those issued by central banks.
Debt securities in issue
Debt securities in issue are transferable certificates of indebtedness of the
Group to the bearer of the certificate. These are liabilities of the Group and
include certificates of deposits.
Default
Financial assets in default represent those that are at least 90 days past due
in respect of principal or interest and/or where the assets are otherwise
considered to be unlikely to pay, including those that are credit-impaired.
Deferred tax asset (DTA)
Income taxes recoverable in future periods in respect of deductible temporary
differences between the accounting and tax base of an asset or liability that
will result in tax deductible amounts in future periods, the carry-forward of
tax losses or the carry-forward of unused tax credits.
Deferred tax liability (DTL)
Income taxes payable in future periods in respect of taxable temporary
differences between the accounting and tax base of an asset or liability that
will result in taxable amounts in future periods.
Defined benefit obligation
The present value of expected future payments required to settle the
obligations of a defined benefit scheme resulting from employee service.
Defined benefit scheme
Pension or other post-retirement benefit scheme other than a defined
contribution scheme.
Defined contribution scheme
A pension or other post-retirement benefit scheme where the employer's
obligation is limited to its contributions to the fund.
Delinquency
A debt or other financial obligation is considered to be in a state of
delinquency when payments are overdue. Loans and advances are considered to be
delinquent when consecutive payments are missed. Also known as arrears.
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Deposits by banks
Deposits by banks comprise amounts owed to other domestic or foreign credit
institutions by the Group including securities sold under repo.
Diluted earnings per share
Represents earnings divided by the weighted average number of shares that
would have been outstanding assuming the conversion of all dilutive potential
ordinary shares.
Dividend per share
Represents the entitlement of each shareholder in the share of the profits of
the Company. Calculated in the lowest unit of currency in which the shares are
quoted.
Early alert, purely and non-purely precautionary
A borrower's account which exhibits risks or potential weaknesses of a
material nature requiring closer monitoring, supervision, or attention by
management. Weaknesses in such a borrower's account, if left uncorrected,
could result in deterioration of repayment prospects and the likelihood of
being downgraded to credit grade 12 or worse. When an account is on early
alert, it is classified as either purely precautionary or non-purely
precautionary. A purely precautionary account is one that exhibits early alert
characteristics, but these do not present any imminent credit concern. If the
symptoms present an imminent credit concern, an account will be considered for
classification as non-purely precautionary.
Effective tax rate
The tax on profit/(losses) on ordinary activities as a percentage of
profit/(loss) on ordinary activities before taxation.
Encumbered assets
On-balance sheet assets pledged or used as collateral in respect of certain of
the Group's liabilities.
ESG
Environmental, Social and Governance.
European Union
The European Union is a political and economic union of 27 member states that
are located primarily in Europe.
Eurozone
Represents the 19 EU countries that have adopted the euro as their common
currency.
Expected credit loss (ECL)
Represents the present value of expected cash shortfalls over the residual
term of a financial asset, undrawn commitment or financial guarantee. This
comprises ECL generated by the models, management judgements and individually
assessed credit impairment provisions.
Expected loss (EL)
The Group measure of anticipated loss for exposures captured under an internal
ratings-based credit risk approach for capital adequacy calculations. It is
measured as the Group-modelled view of anticipated loss based on probability
of default, loss given default and exposure at default, with a one-year time
horizon.
Exposures
Credit exposures represent the amount lent to a customer, together with any
undrawn commitments.
Exposure at default (EAD)
The estimation of the extent to which the Group may be exposed to a customer
or counterparty in the event of, and at the time of, that counterparty's
default. At default, the customer may not have drawn the loan fully or may
already have repaid some of the principal, so that exposure is typically less
than the approved loan limit.
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External Credit Assessment Institution (ECAI)
External credit ratings are used to assign risk-weights under the standardised
approach for sovereigns, corporates and institutions. The external ratings are
from credit rating agencies that are registered or certified in accordance
with the credit rating agencies regulation or from a central bank issuing
credit ratings, which is exempt from the application of this regulation.
Financial Conduct Authority (FCA)
The Financial Conduct Authority regulates the conduct of financial firms and,
for certain firms, prudential standards in the UK. It has a strategic
objective to ensure that the relevant markets function well.
Forbearance
Forbearance takes place when a concession is made to the contractual terms of
a loan in response to an obligor's financial difficulties. The Group
classifies such modified loans as either 'Forborne - not impaired loans' or
'Loans subject to forbearance - impaired'. Once a loan is categorised as
either of these, it will remain in one of these two categories until the loan
matures or satisfies the 'curing' conditions described in Note 8 to the
financial statements in the 2024 Annual Report.
Forborne - not impaired loans
Loans where the contractual terms have been modified due to financial
difficulties of the borrower, but the loan is not considered to be impaired.
See 'Forbearance'.
Funded/unfunded exposures
Exposures where the notional amount of the transaction is funded or unfunded.
Represents exposures where a commitment to provide future funding is made but
funds have been released/not released.
Funding valuation adjustment (FVA)
FVA reflects an adjustment to fair value in respect of derivative contracts
that reflects the funding costs that the market participant would incorporate
when determining an exit price.
G-SIB buffer
A CET1 capital buffer which results from designation as a G-SIB. The G-SIB
buffer is between 1 per cent and 3.5 per cent, depending on the allocation to
one of five buckets based on the annual scoring. In the UK, the G-SIB buffer
is implemented via the CRD as Global Systemically Important Institutions
(G-SII) buffer requirement.
Global Systemically Important Banks (G-SIBs)
Global banking financial institutions whose size, complexity and systemic
interconnectedness mean that their distress or failure would cause significant
disruption to the wider financial system and economic activity. The list of
G-SIBs is assessed under a framework established by the Financial Stability
Board (FSB) and the BCBS. In the UK, the G-SIB framework is implemented via
the CRD and G-SIBs are referred to as Global Systemically Important
Institutions (G-SIIs).
Green and Sustainable Product Framework
Sets out underlying eligible qualifying themes and activities that may be
considered ESG. This has been developed with the support of external experts,
and has been informed by industry and supervisory principles and standards
such as the Green Bond Principles and EU Taxonomy for sustainable activities.
Interest Rate Risk
The risk of an adverse impact on the Group's income statement due to changes
in interest rates.
Internal model approach
The approach used to calculate market risk capital and risk-weighted assets
with an internal market risk model approved by the Prudential Regulation
Authority under the terms of CRD/CRR.
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Internal ratings-based approach (IRB)
Risk-weighting methodology in accordance with the Basel Capital Accord where
capital requirements are based on a firm's own estimates of prudential
parameters.
International Accounting Standard (IAS)
A standard that forms part of the International Financial Reporting Standards
framework.
International Accounting Standards Board (IASB)
An independent standard-setting body responsible for the development and
publication of IFRS, and approving interpretations of IFRS that are
recommended by the IFRS Interpretations Committee (IFRIC).
International Financial Reporting Standards (IFRS)
A set of international accounting standards developed and issued by the
International Accounting Standards Board, consisting of principles-based
guidance contained within IFRS and IAS. All companies that have issued
publicly traded securities in the EU are required to prepare annual and
interim reports under IFRS and IAS that have been endorsed by the EU.
IFRIC
The IFRS Interpretations Committee supports the IASB in providing
authoritative guidance on the accounting treatment of issues not specifically
dealt with by existing IFRS and IAS.
Investment grade
A debt security, treasury bill or similar instrument with a credit rating
measured by external agencies of AAA to BBB.
Leverage ratio
A ratio introduced under CRD IV that compares Tier 1 capital to total
exposures, including certain exposures held off-balance sheet as adjusted by
stipulated credit conversion factors. Intended to be a simple, non-risk-based
backstop measure.
Liquidation portfolio
A portfolio of assets which is beyond our current risk appetite metrics and is
held for liquidation.
Liquidity coverage ratio (LCR)
The ratio of the stock of high-quality liquid assets to expected net cash
outflows over the following 30 days. High-quality liquid assets should be
unencumbered, liquid in markets during a time of stress and, ideally, be
central bank eligible.
Loan exposure
Loans and advances to customers reported on the balance sheet held at
amortised cost or FVOCI, non-cancellable credit commitments and cancellable
credit commitments for credit cards and overdraft facilities.
Loans and advances to banks
Drawn amounts loaned to credit institutions including securities bought under
Reverse repo.
Loans and advances to customers
This represents drawn lending made under bilateral agreements with customers
entered into in the normal course of business and is based on the legal form
of the instrument.
Loans past due
Loans on which payments have been due for up to a maximum of 90 days including
those on which partial payments are being made.
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Loans subject to forbearance - impaired
Loans where the terms have been renegotiated on terms not consistent with
current market levels due to financial difficulties of the borrower. Loans in
this category are necessarily impaired. See 'Forbearance'.
Loan-to-value ratio (LTV)
A calculation which expresses the amount of a first mortgage lien as a
percentage of the total appraised value of real property. The loan-to-value
ratio is used in determining the appropriate level of risk for the loan and
therefore the correct price of the loan to the borrower.
Loss given default (LGD)
The percentage of an exposure that a lender expects to lose in the event of
obligor default.
Loss rate
Uses an adjusted gross charge-off rate, developed using monthly write-off and
recoveries over the preceding 12 months and total outstanding balances.
Malus
An arrangement that permits the Group to prevent vesting of all or part of the
amount of an unvested variable remuneration award, due to a specific
crystallised risk, behaviour, conduct or adverse performance outcome.
Master netting agreement
An agreement between two counterparties that have multiple derivative
contracts with each other that provides for the net settlement of all
contracts through a single payment, in a single currency, in the event of
default on, or termination of, any one contract.
Mezzanine capital
Financing that combines debt and equity characteristics. For example, a loan
that also confers some profit participation to the lender.
Minimum requirement for own funds and eligible liabilities (MREL)
A requirement under the Bank Recovery and Resolution Directive for EU
resolution authorities to set a minimum requirement for own funds and eligible
liabilities for banks, implementing the FSB's Total Loss Absorbing Capacity
(TLAC) standard. MREL is intended to ensure that there is sufficient equity
and specific types of liabilities to facilitate an orderly resolution that
minimises any impact on financial stability and ensures the continuity of
critical functions and avoids exposing taxpayers to loss.
Net asset value (NAV) per share
Ratio of net assets (total assets less total liabilities) to the number of
ordinary shares outstanding at the end of a reporting period.
Net interest income (NII)
The difference between interest received on assets and interest paid on
liabilities.
Net stable funding ratio (NSFR)
The ratio of available stable funding to required stable funding over a
one-year time horizon, assuming a stressed scenario. It is a longer-term
liquidity measure designed to restrain the amount of wholesale borrowing and
encourage stable funding over a one-year time horizon.
Net zero
The commitment to reaching net zero carbon emissions from our operations by
2025 and from our financing by 2050.
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Non-linearity
Non-linearity of expected credit loss occurs when the average of expected
credit loss for a portfolio is higher than the base case (median) due to the
fact that bad economic environment could have a larger impact on ECL
calculation than good economic environment.
Non-performing loans (NPLs)
An NPL is any loan that is more than 90 days past due or is otherwise
individually impaired. All NPLs are reported as part of Stage 3.
Normalised items
Refer 'Underlying/Normalised' in the Alternative performance measures section.
Operating expenses
Staff and premises costs, general and administrative expenses, depreciation
and amortisation. Underlying operating expenses exclude expenses as described
in 'Underlying earnings'. A reconciliation between underlying and reported
earnings is contained in Note 2 to the financial statements.
Operating income or operating profit
Net interest, net fee and net trading income, as well as other operating
income. Underlying operating income represents the income line items above, on
an underlying basis. See 'Underlying earnings'.
Over-the-counter (OTC) derivatives
A bilateral transaction (e.g. derivatives) that is not exchange traded and
that is valued using valuation models.
Own credit adjustment (OCA)
An adjustment to the Group's issued debt designated at fair value through
profit or loss that reflects the possibility that the Group may default and
not pay the full market value of the contracts.
Physical risks
The risk of increased extreme weather events including flood, drought and sea
level rise.
Pillar 1
The first pillar of the three pillars of the Basel framework which provides
the approach to calculation of the minimum capital requirements for credit,
market and operational risk. Minimum capital requirements are 8 per cent of
the Group's risk-weighted assets.
Pillar 2
The second pillar of the three pillars of the Basel framework which requires
banks to undertake a comprehensive assessment of their risks and to determine
the appropriate amounts of capital to be held against these risks where other
suitable mitigants are not available.
Pillar 3
The third pillar of the three pillars of the Basel framework which aims to
provide a consistent and comprehensive disclosure framework that enhances
comparability between banks and further promotes improvements in risk
practices.
Priority Banking
Priority Banking customers are individuals who have met certain criteria for
deposits, AUM, mortgage loans or monthly payroll. Criteria varies by country.
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Private equity investments
Equity securities in operating companies generally not quoted on a public
exchange. Investment in private equity often involves the investment of
capital in private companies. Capital for private equity investment is raised
by retail or institutional investors and used to fund investment strategies
such as leveraged buyouts, venture capital, growth capital, distressed
investments and mezzanine capital.
Probability of default (PD)
PD is an internal estimate for each borrower grade of the likelihood that an
obligor will default on an obligation over a given time horizon.
Probability weighted
Obtained by considering the values the metric can assume, weighted by the
probability of each value occurring.
Profit (loss) attributable to ordinary shareholders
Profit (loss) for the year after non-controlling interests and dividends
declared in respect of preference shares classified as equity.
Prudent valuation adjustment (PVA)
An adjustment to CET1 capital to reflect the difference between fair value and
prudent value positions, where the application of prudence results in a lower
absolute carrying value than recognised in the financial statements.
Prudential Regulation Authority (PRA)
The Prudential Regulation Authority is the statutory body responsible for the
prudential supervision of banks, building societies, credit unions, insurers
and a small number of significant investment firms in the UK. The PRA is a
part of the Bank of England.
Regulatory consolidation
The regulatory consolidation of Standard Chartered PLC differs from the
statutory consolidation in that it includes Akashaverse Pte. Ltd, ASCENTA IV,
CFZ Holding Limited and its subsidiaries, Global Digital Asset Holdings
Limited, Olea Global Pte. Ltd and its subsidiaries, Partior Holdings Pte. Ltd,
SBI Zodia Custody Co. Ltd, Seychelles International Mercantile Banking
Corporation Limited, and Vault22 Solutions Holdings Ltd on a proportionate
consolidation basis. These entities are equity consolidated for statutory
accounting purposes.
The regulatory consolidation further excludes the following entities, which
are consolidated for statutory accounting purposes: Appro marketing solutions
L.L.C, Audax Financial Technology Pte. Ltd, Furaha Finserve Uganda Limited,
Letsbloom India Private Limited, Letsbloom Pte. Ltd , PointSource Technologies
Pte. Ltd, PT Labamu Sejahtera Indonesia, Qatalyst Pte. Ltd, Qlarion Ltd,
Regwise Ltd, SCV Research and Development Pte. Ltd., SCV Research and
Development Pvt. Ltd., Solv Vietnam Company Limited, Solvezy Technology Ghana
Ltd, Solvezy Technology Kenya Ltd, Standard Chartered Assurance Limited,
Standard Chartered Bancassurance Intermediary Limited, Standard Chartered Bank
Insurance Agency (Proprietary) Limited, Standard Chartered Botswana Education
Trust, Standard Chartered Isle of Man Limited , TASConnect (Hong Kong) Private
Limited, TASConnect (Malaysia) Sdn. Bhd, and TASConnect (Shanghai) Financial
Technology Pte. Ltd.
Repo/reverse repo
A repurchase agreement or repo is a short-term funding agreement, which allows
a borrower to sell a financial asset, such as asset-backed securities or
government bonds as collateral for cash. As part of the agreement the borrower
agrees to repurchase the security at some later date, usually less than 30
days, repaying the proceeds of the loan. For the party on the other end of the
transaction (buying the security and agreeing to sell in the future), it is a
reverse repurchase agreement or reverse repo.
Residential mortgage
A loan to purchase a residential property which is then used as collateral to
guarantee repayment of the loan. The borrower gives the lender a lien against
the property, and the lender can foreclose on the property if the borrower
does not repay the loan per the agreed terms. Also known as a home loan.
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Return on risk-weighted assets (RoRWA)
Profit before tax for year as a percentage of RWA. Profit may be statutory or
underlying and is specified where used.
See 'RWA' and 'Underlying earnings'.
Revenue-based carbon intensity
A measurement of the quantity of greenhouse gases emitted by our clients per
USD of their revenue.
Risk-weighted assets (RWA)
A measure of a bank's assets adjusted for their associated risks, expressed as
a percentage of an exposure value in accordance with the applicable
standardised or IRB approach provisions.
Risks not in VaR (RNIV)
A framework for identifying and quantifying marginal types of market risk that
are not captured in the Value at Risk (VaR) measure for any reason, such as
being a far-tail risk, or the necessary historical market data not being
available.
Roll rate
Uses a matrix that gives average loan migration rate from delinquency states
from period to period. A matrix multiplication is then performed to generate
the final PDs by delinquency bucket over different time horizons.
Scope 1 emissions
Arise from the consumption of energy from direct sources during the use of
property occupied by the Group. On-site combustion of fuels such as diesel,
liquefied petroleum gas and natural gas is recorded using meters or, where
metering is not available, collated from fuel vendor invoices. Emissions from
the combustion of fuel in Group-operated transportation devices, as well as
fugitive emissions, are excluded as being immaterial.
Scope 2 emissions
Arise from the consumption of indirect sources of energy during the use of
property occupied by the Group. Energy generated off-site in the form of
purchased electricity, heat, steam or cooling is collected as kilowatt hours
consumed using meters or, where metering is not available, collated from
vendor invoices. For leased properties we include all indirect and direct
sources of energy consumed by building services (among other activities)
within the space occupied by the Group. This can include base building
services under landlord control but over which we typically hold a reasonable
degree of influence. All data centre facilities with conditioning systems and
hardware remaining under the operational control of the Group are included in
the reporting. This does not include energy used at outsourced data centre
facilities which are captured under Scope 3.
Scope 3 emissions
Occur as a consequence of the Group's activities but arising from sources not
controlled by the Group. Business air travel data is collected as person
kilometres travelled by seating class by employees of the Group. Data is drawn
from country operations that have processes in place to gather accurate
employee air travel data from travel management companies. Flights are
categorised as short, medium or long haul trips. Emissions from other
potential Scope 3 sources such as electricity transmission and distribution
line losses are not currently accounted for on the basis that they cannot be
calculated with an acceptable level of reliability or consistency. The Group
does however capture Scope 3 emissions from outsourced data centres managed by
third parties.
Secured (fully and partially)
A secured loan is a loan in which the borrower pledges an asset as collateral
for a loan which, in the event that the borrower defaults, the Group is able
to take possession of. All secured loans are considered fully secured if the
fair value of the collateral is equal to or greater than the loan at the time
of origination. All other secured loans are considered to be partially
secured.
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Securitisation
Securitisation is a process by which credit exposures are aggregated into a
pool, which is used to back new securities.
Under traditional securitisation transactions, assets are sold to a structured
entity which then issues new securities to investors at different levels of
seniority (credit tranching). This allows the credit quality of the assets to
be separated from the credit rating of the originating institution and
transfers risk to external investors in a way that meets their risk appetite.
Under synthetic securitisation transactions, the transfer of risk is achieved
by the use of credit derivatives or guarantees, and the exposures being
securitised remain exposures of the originating institution.
Senior debt
Debt that takes priority over other unsecured or otherwise more 'junior' debt
owed by the issuer. Senior debt has greater seniority in the issuer's capital
structure than subordinated debt. In the event the issuer goes bankrupt,
senior debt theoretically must be repaid before other creditors receive any
payment.
Significant increase in credit risk (SICR)
Assessed by comparing the risk of default of an exposure at the reporting date
to the risk of default at origination (after considering the passage of time).
Solo
The solo regulatory group as defined in the Prudential Regulation Authority
waiver letter dated 10 August 2020 differs from Standard Chartered Bank
Company in that it includes the full consolidation of nine subsidiaries,
namely Standard Chartered Holdings (International) B.V., Standard Chartered MB
Holdings B.V., Standard Chartered UK Holdings Limited, Standard Chartered
Grindlays PTY Limited, SCMB Overseas Limited, Standard Chartered Capital
Management (Jersey) LLC, Cerulean Investments L.P., SC Ventures Innovation
Investment L.P. and SC Ventures G.P. Limited.
Sovereign exposures
Exposures to central governments and central government departments, central
banks and entities owned or guaranteed by the aforementioned. Sovereign
exposures, as defined by the European Banking Authority, include only
exposures to central governments.
Stage 1
Financial assets within the scope of IFRS 9 ECL that have not experienced a
significant increase in credit risk since origination and impairment
recognised on the basis of 12 months expected credit losses.
Stage 2
Financial assets within the scope of IFRS 9 ECL that have experienced a
significant increase in credit risk since origination and impairment is
recognised on the basis of lifetime expected credit losses.
Stage 3
Financial assets within the scope of IFRS 9 ECL that are in default and
considered credit-impaired (non-performing loans).
Standardised approach
In relation to credit risk, a method for calculating credit risk capital
requirements using External Credit Assessment Institution (ECAI) ratings and
supervisory risk weights. In relation to operational risk, a method of
calculating the operational capital requirement by the application of a
supervisory defined percentage charge to the gross income of eight specified
business lines.
Structured note
An investment tool which pays a return linked to the value or level of a
specified asset or index and sometimes offers capital protection if the value
declines. Structured notes can be linked to equities, interest rates, funds,
commodities and foreign currency.
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Subordinated liabilities
Liabilities which, in the event of insolvency or liquidation of the issuer,
are subordinated to the claims of depositors and other creditors of the
issuer.
Sustainability aspirations
A series of targets and metrics by which we aim to promote social and economic
development, and deliver sustainable outcomes in the areas in which we can
make the most material contribution to the delivery of the UN Sustainable
Development Goals.
Sustainable Finance assets
Assets from clients whose activities are aligned with the Green and
Sustainable Product Framework and/or from transactions for which the use of
proceeds will be utilised directly to contribute towards eligible themes and
activities set out within the Green and Sustainable Product Framework.
Sustainable Finance revenue
Revenue from clients whose activities are aligned with the Green and
Sustainable Product Framework and/or from transactions for which proceeds will
be utilised directly to contribute towards eligible themes and activities set
out within the Green and Sustainable Product Framework and/or from approved
'labelled' transactions such as any transaction referred to as 'green',
'social', 'sustainable', 'SDG (sustainable development goal) aligned', 'ESG',
'transition', 'COVID-19 facility' or 'COVID-19 response' which have been
approved by the Sustainable Finance Governance Committee.
Tier 1 capital
The sum of Common Equity Tier 1 capital and Additional Tier 1 capital.
Tier 1 capital ratio
Tier 1 capital as a percentage of risk-weighted assets.
Tier 2 capital
Tier 2 capital comprises qualifying subordinated liabilities and related share
premium accounts.
Total loss absorbing capacity (TLAC)
An international standard for TLAC issued by the FSB, which requires G-SIBs to
have sufficient loss-absorbing and recapitalisation capacity available in
resolution, to minimise impacts on financial stability, maintain the
continuity of critical functions and avoid exposing public funds to loss.
Transition risks
The risk of changes to market dynamics or sectoral economics due to
governments' response to climate change.
UK bank levy
A levy that applies to certain UK banks and the UK operations of foreign
banks. The levy is payable each year based on a percentage of the chargeable
equities and liabilities on the Group's UK tax resident entities' balance
sheets. Key exclusions from chargeable equities and liabilities include Tier 1
capital, insured or guaranteed retail deposits, repos secured on certain
sovereign debt and liabilities subject to netting.
Unbiased
Not overly optimistic or pessimistic, represents information that is not
slanted, weighted, emphasised, de-emphasised or otherwise manipulated to
increase the probability that the financial information will be received
favourably or unfavourably by users.
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Unlikely to pay
Indications of unlikeliness to pay shall include: placing the credit
obligation on non-accrued status; the recognition of a specific credit
adjustment resulting from a significant perceived decline in credit quality
subsequent to the Group taking on the exposure; selling the credit obligation
at a material credit-related economic loss; the Group consenting to a
distressed restructuring of the credit obligation where this is likely to
result in a diminished financial obligation caused by the material
forgiveness, or postponement, of principal, interest or, where relevant fees;
filing for the obligor's bankruptcy or a similar order in respect of an
obligor's credit obligation to the Group; the obligor has sought or has been
placed in bankruptcy or similar protection where this would avoid or delay
repayment of a credit obligation to the Group.
Value at Risk (VaR)
A quantitative measure of market risk estimating the potential loss that will
not be exceeded in a set time period at a set statistical confidence level.
Value in Use (ViU)
The present value of the future expected cash flows expected to be derived
from an asset or CGU.
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CONTACT INFORMATION
Global headquarters
Standard Chartered Group
1 Basinghall Avenue
London, EC2V 5DD
United Kingdom
telephone: +44 (0)20 7885 8888
Investor Relations
For further information, please contact:
Manus Costello, Global Head of Investor Relations
+44 (0) 20 7885 0017
Manus.Costello@sc.com
Shareholder enquiries
ShareCare information
website: sc.com/shareholders
helpline: +44 (0)370 702 0138
ShareGift information
website: ShareGift.org
helpline: +44 (0)20 7930 3737
Registrar information
UK
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol, BS99 6ZZ
helpline: +44 (0)370 702 0138
Hong Kong
Computershare Hong Kong Investor Services Limited
17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong
website: computershare.com/hk/investors
Chinese translation
Computershare Hong Kong Investor Services Limited
17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong
Register for electronic communications
website: investorcentre.co.uk
LSE Stock code: STAN.LN
HKSE Stock code: 02888
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