REG - Standard Chrtrd PLC - SCPLC Half Year Results 2025
Thu 07:01
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250731:nRSe2926Ta&default-theme=true
RNS Number : 2926T Standard Chartered PLC 31 July 2025
Standard Chartered PLC - Half Year Results 2025 - Part 1
Table of content
Performance highlights 02
Statement of results 04
Group Chief Executive's review 05
Group Chief Financial Officer's review 07
Financial review 10
Supplementary financial information 17
Underlying versus reported results reconciliations 25
Alternative performance measures 27
Group Chief Risk Officer's review 29
Shareholder information 36
Important notices 38
Unless another currency is specified, the word 'dollar' or symbol '$' in this
document means US dollar and the word 'cent' or symbol 'c' means one-hundredth
of one US dollar.
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 -
Standard Chartered PLC - Results for the first half and second quarter ended
30 June 2025
All figures are presented on an underlying basis and comparisons are made to
2024 on a reported currency basis, unless otherwise stated. A reconciliation
of restructuring and other items excluded from underlying results is set out
below.
Bill Winters, Group Chief Executive, said:
"Our strong first-half performance reflects continued successful execution of
our strategy, through our focus on cross-border and affluent banking. We
delivered record net new money in the second quarter, alongside double-digit
income growth in Wealth Solutions, Global Markets and Global Banking. Through
our unique network across Asia, Africa and the Middle East, we offer our
clients the means to navigate volatile external conditions. We're performing
well, while keeping a tight grip on costs, credit risk and capital. As a
result, we delivered a 41 per cent increase in earnings per share in the first
half and have announced a further buyback of $1.3 billion."
Selected information on Q2'25 financial performance with comparisons to Q2'24
unless otherwise stated
• Operating income of $5.5bn up 14% at constant currency (ccy), up 15% at
ccy excluding notable1 items.
- Excluding $238m gain on the Solv India transaction with Jumbotail, income
up 10% at ccy.
- Net interest income (NII) was broadly flat at ccy at $2.7bn.
- Non NII up 31% at ccy to $2.8bn, up 33% at ccy excluding notable items.
- Wealth Solutions up 20% at ccy, with double-digit growth in both
Investment Products and Bancassurance.
- Global Markets up 47% at ccy, with strong performance in both flow and
episodic income.
- Global Banking up 12% at ccy, driven by higher origination and
distribution volumes, and increased capital markets activity.
• Operating expenses up 3% at ccy to $3bn, driven by targeted investments
for business growth, and inflation, partly offset by efficiency saves.
• Credit impairment charge of $117m; Wealth & Retail Banking (WRB)
charge of $153m up year-on-year albeit lower quarter-on-quarter due to
reduction in some unsecured portfolios, partly offset by a $44m release in
Corporate & Investment Banking (CIB).
- Loan-loss rate of 12 basis points (bps).
• Underlying profit before tax of $2.4bn, up 34% at ccy; reported profit
before tax of $2.3bn, up 48% at ccy.
• Restructuring and other charges of $123m include $87m related to the Fit
for Growth programme.
• Balance sheet remains strong, liquid and well diversified:
- Loans and advances to customers of $287bn up 2% since 31.03.25; up $1bn on
an underlying basis, after adjusting for foreign exchange (FX), and Treasury
and Global Markets securities backed lending activities.
- Customer deposits of $517bn up 5% since 31.03.25; up 4% at ccy; growth in
CIB and WRB CASA and Term Deposits in WRB.
• Risk-weighted assets (RWA) of $260bn, up $6bn since 31.03.25.
- Credit risk RWA up $7.1bn; driven by FX translation, asset growth and mix,
a sovereign downgrade, partly offset by optimisation activities. Reduction in
Market risk RWA of $1bn.
• The Group remains strongly capitalised:
- Common Equity Tier 1 (CET1) ratio 14.3% (31.03.25: 13.8%).
- $1.3bn share buyback starting imminently is expected to reduce CET1 ratio
by approximately 50bps.
- Interim ordinary dividend increased 37% to 12.3 cents per share ($288m).
- Tangible net asset value per share of $16.80, up 119 cents
quarter-on-quarter.
• Return on Tangible Equity (RoTE) of 19.7%, up 7%pts.
1 Notable items relating to Ghana hyperinflation and revaluation of FX
positions in Egypt
- page 02 -
Selected information on H1'25 financial performance with comparisons to H1'24
unless otherwise stated
• Underlying earnings per share (EPS) increased 40.7 cents or 41% to 139.2
cents; reported EPS increased 45.8 cents or 55% to 129.1 cents.
• Operating income up 9% to $10.9bn, up 10% at ccy; up 13% at ccy excluding
notable items.
- NII up 4% at ccy to $5.5bn; non NII up 18% at ccy to $5.4bn, up 25% at ccy
excluding notable items.
- Wealth Solutions up 24% at ccy, particularly strong growth in capital
market products.
- Global Banking up 14% at ccy driven by higher origination and distribution
volumes.
- Global Markets up 28% at ccy with episodic income up 50% and flow income
up 19%.
• Operating expenses up 5% to $6bn, up 4% at ccy.
• Credit impairment charge of $336m, includes WRB charges $332m.
• Underlying profit before tax of $4.7bn, up 22% at ccy; reported profit
before tax of $4.4bn, up 30% at ccy.
• Tax charge of $1.1bn; underlying effective tax rate of 23.7%.
• RoTE of 18.1%, up 4%pts.
Guidance
2025 and 2026 guidance:
• Income:
- Operating income to increase 5-7% compound annual growth rate (CAGR) in
2023-2026 at ccy excluding the deposit insurance reclassification; tracking
towards the upper end of the range
- 2025 growth expected to be around the bottom of the 5-7% range at ccy
excluding notable items
• Expenses:
- Operating expenses to be below $12.3bn1 in 2026 at ccy, including the UK
bank levy and the ongoing impact of the deposit insurance reclassification
- Expense saves of around $1.5bn and cost to achieve of no more than $1.5bn
from the Fit for Growth programme
- Positive income-to-cost jaws in each year at ccy, excluding notable items
• Assets and RWA:
- Low single-digit percentage growth in underlying loans and advances to
customers and RWA
- Basel 3.1 day-1 RWA impact expected to be close to neutral
- Continue to expect the loan-loss rate to normalise towards the historical
through-the-cycle 30 to 35bps range
• Capital:
- Continue to operate dynamically within the full 13-14% CET1 ratio target
range
- Plan to return at least $8bn to shareholders cumulative 2024-2026
- Continue to increase full-year dividend per share over time
• RoTE approaching 13% in 2026 and to progress thereafter.
1 Currently running at $12.4 billion due to FX
- page 03 -
Statement of results
6 months ended 30.06.25 6 months ended 30.06.24 Change¹
$million
$million
%
Underlying performance
Operating income 10,899 9,958 9
Operating expenses (5,965) (5,673) (5)
Credit impairment (336) (249) (35)
Other impairment (9) (143) 94
Profit from associates and joint ventures 91 64 42
Profit before taxation 4,680 3,957 18
Profit attributable to ordinary shareholders² 3,307 2,567 29
Return on ordinary shareholders' tangible equity (%) 18.1 14.0 410bps
Cost-to-income ratio (%) 54.7 57.0 230bps
Reported performance⁷
Operating income 10,906 9,791 11
Operating expenses (6,247) (6,056) (3)
Credit impairment (336) (240) (40)
Goodwill and other impairment (19) (147) 87
Profit from associates and joint ventures 79 144 (45)
Profit before taxation 4,383 3,492 26
Taxation (1,057) (1,123) 6
Profit for the period 3,326 2,369 40
Profit attributable to parent company shareholders 3,309 2,378 39
Profit attributable to ordinary shareholders2 3,065 2,169 41
Return on ordinary shareholders' tangible equity (%) 16.4 11.9 450bps
Cost-to-income ratio (%) 57.3 61.9 460bps
Net interest margin (%) (adjusted)6,9 2.05 1.98 7bps
30.06.25 31.12.24 Change¹
$million
$million
%
Balance sheet and capital
Total assets 913,936 849,688 8
Total equity 54,670 51,284 7
Average tangible equity attributable to ordinary shareholders2 37,676 36,876 2
Loans and advances to customers 286,731 281,032 2
Customer accounts 517,390 464,489 11
Risk-weighted assets 259,684 247,065 5
Total capital 53,281 53,091 -
Total capital ratio (%) 20.5 21.5 (97)bps
Common Equity Tier 1 37,260 35,190 6
Common Equity Tier 1 ratio (%) 14.3 14.2 11bps
Advances-to-deposits ratio (%)3 51.0 53.3 (230)bps
Liquidity coverage ratio (%) 146 138 830bps
UK leverage ratio (%) 4.7 4.8 (11)bps
30.06.25 30.06.24 Change¹
Information per ordinary share8
Earnings per share4 - underlying (cents) 139.2 98.5 40.7
- reported 129.1 83.3 45.8
(cents)
Net asset value per share5 (cents) 1,941 1,683 258
Tangible net asset value per share5 (cents) 1,680 1,444 236
Number of ordinary shares at period end (millions) 2,330 2,550 (9)
1 Variance is better/(worse) other than assets, liabilities and
risk-weighted assets. Change is percentage points difference between two
points rather than percentage change for total capital ratio (%), Common
Equity Tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio
(%), liquidity coverage ratio (%), leverage ratio (%), cost-to-income ratio
(%) and return on ordinary shareholders' tangible equity (%)
2 Profit/(loss) attributable to ordinary shareholders is after the
deduction of dividends payable to the holders of non-cumulative redeemable
preference shares and Additional Tier 1 securities classified as equity
3 When calculating this ratio, total loans and advances to customers
excludes reverse repurchase agreements and other similar secured lending,
excludes approved balances held with central banks, confirmed as repayable at
the point of stress and includes loans and advances to customers held at fair
value through profit and loss. Total customer accounts include customer
accounts held at fair value through profit or loss
4 Represents the underlying or reported earnings divided by the basic
weighted average number of shares. Results represent six months ended the
reporting period
5 Calculated on period end net asset value, tangible net asset value and
number of shares
6 Net interest margin is calculated as adjusted net interest income
divided by average interest-earning assets, annualised
7 Reported performance/results within this interim financial report means
amounts reported under UK-adopted International Accounting Standards and
International Financial Reporting Standards
8 Change is cents difference between the two periods for earnings per
share, net asset value per share and tangible net asset value per share.
Number of ordinary shares at period end is percentage difference between the
two periods
9 Net interest income has been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025 to reflect the
reclassification of funding cost mismatches to non NII
- page 04 -
Group Chief Executive's review
Focused strategy, strong delivery
The continuing disciplined execution of our strategy is delivering strong
financial results and improving shareholder returns. Income of $10.9 billion
was up 10 per cent year-on-year at constant currency with an underlying return
on tangible equity of 18.1 per cent in the first half of the year.
Our strategic objectives are clear and continue to resonate with our clients
and employees. We combine differentiated cross-border capabilities for
corporate and institutional clients with leading wealth management expertise
for affluent clients.
This focus on areas of greatest competitive advantage is yielding results,
with double-digit income growth in Wealth Solutions, Global Markets and Global
Banking in the first half of 2025. Our ambition is to outperform consistently
in these areas, and we are seeing encouraging signs, including a record net
new money in our affluent business, providing demonstrable progress towards
our ambition to deliver $200 billion of net new money from 2025 to 2029. In
the broader Wealth & Retail Banking (WRB) business, we are reinforcing our
position as a leading wealth manager across Asia, Africa and the Middle East.
With a strong combination of product innovation, advisory expertise and
digital capabilities, we are seeing continued momentum across our fast-growing
and high-returning international affluent franchise. In Asia, we are now the
number three wealth manager by assets under management.
Our deep-rooted and diversified global network gives us a unique ability to
help our clients grow and protect their business and wealth across borders. In
the first half of the year our cross-border income was up 9 per cent
year-on-year excluding the impact of rates and we saw a 17 per cent increase
in the intra-ASEAN corridor. Such capability is valuable in any environment,
but at times of elevated global economic and geopolitical uncertainty, it
provides a much-needed service to our client base.
Our footprint informs our perspective on the sustainability challenges and
opportunities facing our clients and communities. This puts us in a strong
position to direct capital to where it is needed most, and we remain committed
to that goal. In the first half of 2025, our sustainable finance income grew 5
per cent year-on-year while sustainable finance issuances contracted across
the broader market, and we are on track to achieve our target of at least $1
billion by 2025. We have also mobilised $136 billion in sustainable finance
since 2021 towards our $300 billion target by 2030, with notable transactions
in the first half including our first-ever Social Bond ('Viñals Social Bond')
of €1 billion, first Indonesia Just Energy Transition solar project, and a
£2.5 billion landmark carbon capture transaction in the UK.
We will continue to invest in our strategy while exploring alternative and
complementary business models to serve clients seeking non-traditional
solutions. One such area is digital assets, which is a growing and
increasingly integral part of financial services. As institutional demand
builds and regulatory clarity improves, we are at the forefront; for example
we are the only global systemically important bank to offer spot trading in
Bitcoin and Ether. Through businesses in our Ventures portfolio like Zodia
Custody and Zodia Markets, we are expanding our digital asset capabilities,
bridging traditional finance with the evolving digital ecosystem and opening
up new, future-facing opportunities. Clients choose us for the trust and
credibility we bring as a regulated institution in a rapidly evolving space.
More broadly, SC Ventures will continue to advance a culture of innovation
across the Group, by incubating and scaling new business models. We remain
disciplined in how we manage the SC Ventures portfolio. This quarter, the Solv
India transaction with Jumbotail, one of India's leading B2B marketplaces,
reflects our focus on scaling ventures where we see the strongest strategic
fit and long-term value creation. Also, our digital banks, Mox and Trust, are
gaining traction with volume growth.
Executing with discipline and purpose
We have set ourselves clear and ambitious transformation goals that will
structurally improve our profitability and help us to deliver our strategy at
greater pace and scale. This is hard work, challenging us to raise the bar
across the organisation. I am encouraged by the incremental progress we are
making and continue to be impressed by the resilience and dedication our
people bring to delivering these objectives.
Our new Group Chair, Maria Ramos, and I share a passion for developing people
and promoting talent. There has always been a sense of pride running through
the organisation - what our previous Group Chair, José Viñals, referred to
as its 'soul'. What we now see and encourage is a renewed confidence, built on
our consistent performance. This is critical in delivering our strategy,
especially as we focus on developing creative, innovative solutions for our
clients.
- page 05 -
To build on this momentum, we will continue to hone a high-performance
culture; one that complements who we are, further highlights our
distinctiveness, and remains anchored in the purpose that our clients and
partners value.
Returning value to shareholders
We remain committed to sharing our success with our shareholders and will
continue to actively manage our capital position with this in mind. We are
announcing a further share buyback programme of $1.3 billion, to commence
imminently. This new share buyback, and the interim dividend of $288 million,
brings our total shareholder returns announced since the full-year 2023
results to $6.5 billion; well on our way to our target of at least $8 billion
through to the end of 2026.
A high-growth outlook across our footprint
Downside risks to the global economy persist amid elevated trade policy
uncertainty and wider geopolitical change. We expect the 2025 global growth
forecast to moderate slightly to 3.1 per cent from the 3.2 per cent projected
in late 2024.
Growth in our footprint across Asia, Africa and the Middle East, is set to
outpace global growth in 2025, with average growth of 4.9 per cent in Asia,
4.1 per cent in Africa and 3.4 per cent in Middle East, in contrast to an
average of 1.3 per cent for major developed economies.
We are uniquely positioned to take advantage of growth opportunities that will
continue to emerge from the markets in our footprint, generating value for our
clients and the communities in which we operate. We remain committed to
investing in our core capabilities serving our institutional clients'
cross-border needs, with a particular focus on affluent clients in WRB.
Conclusion
As we look ahead, we do so with confidence, grounded in our focused strategy,
the resilience, agility and diversity of our network, and the capabilities we
continue to build.
Maintaining a strong financial performance and the return of a further $1.3
billion to shareholders, demonstrates the strength of our franchise.
While the global environment remains complex and uncertain, our unique
positioning in some of the world's most dynamic markets, combined with our
disciplined execution, leaves us well placed to capture opportunities and help
our clients navigate and capitalise on these conditions.
And as ever, it is the dedication of our people that enables us to serve our
clients with conviction and generate sustainable, long-term value for our
shareholders.
Thank you for your continued trust and support as we shape a bank that is not
only fit for the future but also helping to build it.
Bill Winters
Group Chief Executive
31 July 2025
- page 06 -
Group Chief Financial Officer's review
The Group delivered a strong performance in the first half of 2025
All commentary that follows is on an underlying basis and comparisons are made
to the equivalent period in 2024 on a constant currency basis, unless
otherwise stated. H1 2024 included items totalling $258 million relating to
gains on revaluation of FX positions in Egypt and a hyperinflationary
accounting adjustment in Ghana (the notable items).
The Group delivered a strong performance in the first half of 2025 amidst an
evolving macro and geopolitical environment. Operating income grew by 10 per
cent to $10.9 billion. Excluding the impact of the notable items, operating
income was up 13 per cent. Underlying expenses increased 4 per cent driven by
continued investment into business initiatives, resulting in positive
income-to-cost jaws of 6 per cent. Credit impairment charges of $336 million
were equivalent to an annualised loan-loss rate of 19 basis points. This
resulted in an underlying profit before tax of $4.7 billion, up 22 per cent,
and underlying earnings per share of 139 cents, up 41 per cent also
benefitting from a reduction in share count.
The Group remains well capitalised and highly liquid with a diverse and stable
deposit base. The liquidity coverage ratio of 146 per cent reflects
disciplined asset and liability management. The Common Equity Tier 1 (CET1)
ratio of 14.3 per cent remains above the target range, with profit accretion
in the first half partly offset by shareholder distributions and growth in
risk-weighted assets (RWA). This capital strength has enabled the Board to
announce an interim ordinary dividend of 12.3 cents per share, up 3.3 cents
or 37 per cent, and announce a further $1.3 billion share buyback programme to
commence imminently. This follows on from the $1.5 billion share buyback
commenced in February 2025.
Operating income of $10.9 billion increased by 10 per cent or 13 per cent
excluding the two notable items. The growth was driven by record performance
in Wealth Solutions, strong pipeline execution in Global Banking and elevated
client activity in Global Markets.
Net interest income (NII) increased 4 per cent, benefitting from improved mix
and roll-off of legacy short-term hedges which was partly offset by the impact
of lower interest rates and margin compression.
Non NII increased 18 per cent or 25 per cent excluding the notable items. This
was driven by continued momentum in Wealth Solutions, strong performance in
Global Banking and record Global Markets income, supported by a $238 million
gain from the Solv India transaction.
Operating expenses increased 4 per cent. This was largely driven by continued
investments into business growth initiatives and inflation which were partly
offset by efficiency savings. The Group generated 6 per cent positive
income-to-cost jaws and the cost-to-income ratio improved 3 percentage points
to 55 per cent.
Credit impairment was a charge of $336 million, an increase of $87 million.
Wealth & Retail Banking charge of $332 million increased $65 million
primarily from higher charge-offs in a few select markets. Corporate &
Investment Banking impairments continued to be well managed with a net release
of $14 million. Ventures impairments were lower as delinquency rates continued
to improve in Mox. The first half charge includes a non-linearity charge of
$34 million, reflecting an increased probability weighting for the two
downside scenarios given the heightened uncertainty around trade tariffs.
Other impairment charge decreased by $134 million to $9 million due to the
non-repeat of software asset write-offs.
Profit from associates and joint ventures increased by $27 million reflecting
higher profits at China Bohai Bank.
Restructuring, Fit For Growth, Debit Valuation Adjustment (DVA) and other
items totalled $297 million including $160 million charge related to the Fit
for Growth programme and $137 million restructuring charges primarily relating
to the simplification of technology platforms and losses relating to business
and portfolio exits.
Taxation was $1.1 billion on a reported basis, with an underlying effective
tax rate of 23.7 per cent down from 30.1 per cent in the prior year reflecting
changes in geographic mix of profits, lower level of non-deductible losses in
the UK, lower non-tax-deductible costs and adjustments related to prior
periods.
Underlying RoTE of 18.1 per cent increased 410 basis points due to higher
profits and lower taxation partly offset by higher tangible equity. On a
reported basis, RoTE increased 450 basis points to 16.4 per cent with growth
in underlying profits and reduced charges relating to other items.
- page 07 -
Underlying basic earnings per share (EPS) increased 41 cents or 41 per cent to
139.2 cents and reported increased 46 cents or 55 per cent to 129.1 cents
reflecting both the increase in profits and reduction in share count following
the execution of successive share buyback programmes.
Diego De Giorgi
Group Chief Financial Officer
31 July 2025
- page 08 -
Summary of financial performance
H1'25 H1'24 Change Constant currency change1 Q2'25 Q2'24 Change Constant currency change1 Q1'25 Change Constant currency change¹
$million
$million
%
%
$million
$million
%
%
$million
%
%
Underlying net interest income2 5,499 5,350 3 4 2,703 2,694 - - 2,796 (3) (4)
Underlying non NII2 5,400 4,608 17 18 2,806 2,112 33 31 2,594 8 8
Underlying operating income 10,899 9,958 9 10 5,509 4,806 15 14 5,390 2 2
Underlying operating expenses (5,965) (5,673) (5) (4) (3,050) (2,887) (6) (3) (2,915) (5) (3)
Underlying operating profit before impairment and taxation 4,934 4,285 15 18 2,459 1,919 28 30 2,475 (1) -
Credit impairment (336) (249) (35) (32) (117) (73) (60) (51) (219) 47 48
Other impairment (9) (143) 94 94 (3) (83) 96 97 (6) 50 50
Profit from associates and 91 64 42 42 64 65 (2) (8) 27 137 103
joint ventures
Underlying profit before taxation 4,680 3,957 18 22 2,403 1,828 31 34 2,277 6 7
Restructuring5 (137) (64) (114) (144) (40) (19) (111) (105) (97) 59 55
FFG5 (160) (86) (86) (86) (87) (76) (14) (14) (73) (19) (19)
DVA 5 (26) 119 123 9 22 (59) (52) (4) nm nm
Other items (5) (289) 98 98 (5) (177) 97 97 - nm nm
Reported profit before taxation 4,383 3,492 26 30 2,280 1,578 44 48 2,103 8 10
Taxation (1,057) (1,123) 6 3 (546) (604) 10 9 (511) (7) (6)
Profit for the period 3,326 2,369 40 45 1,734 974 78 83 1,592 9 11
Net interest margin (%)3,4 2.05 1.98 7 1.98 2.03 (5) 2.12 (14)
Underlying return on tangible 18.1 14.0 410bps 19.7 12.9 680bps 16.4 330bps
equity (%)4
Underlying earnings per share (cents) 139.2 98.5 41 76.6 45.5 68 62.7 22
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Underlying Net Interest Income (NII) has been re-presented in line with
the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reclassification of funding cost mismatches to underlying non
NII
3 Net interest margin has been restated due to the revision of underlying
net interest income as outlined in footnote 2
4 Change is the basis points (bps) difference between the two periods
rather than the percentage change
5 FFG (Fit for Growth) charge previously reported within Restructuring has
been re-presented as a separate item
Reported financial performance summary
H1'25 H1'24 Change Constant currency change1 Q2'25 Q2'24 Change Constant currency change1 Q1'25 Change Constant currency change
$million
$million
%
%
$million
$million
%
%
$million
%
%
Net interest income 3,044 3,175 (4) (3) 1,463 1,603 (9) (9) 1,581 (7) (9)
Non NII 7,862 6,616 19 20 4,064 3,058 33 32 3,798 7 7
Reported operating income 10,906 9,791 11 12 5,527 4,661 19 18 5,379 3 2
Reported operating expenses (6,247) (6,056) (3) (3) (3,201) (3,059) (5) (3) (3,046) (5) (3)
Reported operating profit before impairment and taxation 4,659 3,735 25 29 2,326 1,602 45 48 2,333 - 1
Credit impairment (336) (240) (40) (37) (119) (75) (59) (49) (217) 45 46
Goodwill and Other impairment (19) (147) 87 87 (4) (87) 95 96 (15) 73 73
Profit from associates and 79 144 (45) (45) 77 138 (44) (46) 2 nm nm
joint ventures
Reported profit before taxation 4,383 3,492 26 30 2,280 1,578 44 48 2,103 8 10
Taxation (1,057) (1,123) 6 3 (546) (604) 10 9 (511) (7) (5)
Profit for the period 3,326 2,369 40 45 1,734 974 78 83 1,592 9 11
Reported return on tangible equity (%)2 16.4 11.9 450bps 17.9 10.4 750bps 14.8 310bps
Reported earnings per share (cents) 129.1 83.3 55 72.5 36.7 98 56.6 28
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Change is the basis points (bps) difference between the two periods
rather than the percentage change
- page 09 -
Financial review
Operating income by product
H1'25 H1'24² Change Constant currency change1 Q2'25 Q2'24² Change Constant currency change1 Q1'25 Change Constant currency change1
$million
$million
%
%
$million
$million
%
%
$million
% %
Transaction Services 2,996 3,196 (6) (6) 1,469 1,593 (8) (8) 1,527 (4) (4)
Payments & Liquidity 2,074 2,300 (10) (9) 1,013 1,139 (11) (11) 1,061 (5) (5)
Securities & Prime Services 309 294 5 6 158 153 3 4 151 5 5
Trade & Working Capital 613 602 2 3 298 301 (1) - 315 (5) (6)
Global Banking 1,096 960 14 14 548 488 12 12 548 - (1)
Lending & Financial Solutions 928 836 11 11 476 422 13 12 452 5 4
Capital Markets & Advisory 168 124 35 37 72 66 9 11 96 (25) (25)
Global Markets 2,355 1,837 28 28 1,172 796 47 47 1,183 (1) (1)
Macro Trading 1,939 1,515 28 28 961 631 52 52 978 (2) (2)
Credit Trading 409 332 23 24 187 165 13 14 222 (16) (16)
Valuation & Other Adj 7 (10) 170 170 24 - nm nm (17) nm nm
Wealth Solutions 1,519 1,234 23 24 742 618 20 20 777 (5) (5)
Investment Products 1,103 868 27 28 544 444 23 22 559 (3) (3)
Bancassurance 416 366 14 15 198 174 14 14 218 (9) (10)
Deposits & Mortgages 1,996 2,061 (3) (3) 990 1,041 (5) (5) 1,006 (2) (2)
CCPL & Other Unsecured Lending 539 530 2 2 282 270 4 4 257 10 9
Ventures 320 80 nm nm 278 48 nm nm 42 nm nm
Digital Banks 88 62 42 48 46 33 39 48 42 10 5
SCV 232 18 nm nm 232 15 nm nm - nm nm
Treasury & Other 78 60 30 nm 28 (48) 158 nm 50 (44) (45)
Total underlying operating income 10,899 9,958 9 10 5,509 4,806 15 14 5,390 2 2
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 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
The operating income by product commentary that follows is on an underlying
basis and comparisons are made to the equivalent period in 2024 on a constant
currency basis, unless otherwise stated. H1 2024 included items totalling $258
million relating to gains on revaluation of foreign exchange (FX) positions in
Egypt and a hyperinflationary accounting adjustment in Ghana (the notable
items).
Transaction Services income decreased 6 per cent as growth in Securities &
Prime Services and Trade & Working Capital was more than offset by lower
Payments & Liquidity. Securities & Prime Services income grew 6 per
cent from higher custody, funds and prime brokerage fees, while Trade &
Working Capital income increased 3 per cent driven by higher volumes and fees.
Payments & Liquidity income decreased 9 per cent as volume growth was more
than offset by the impact of lower interest rates and margin compression.
Global Banking income increased 14 per cent. Lending & Financial Solutions
income grew 11 per cent as increased deal completion led to higher origination
and distribution volumes. This resulted in increases in both carry and fee
income. Capital Market & Advisory grew 37 per cent on the back of higher
bond issuances and increased Mergers & Acquisitions activity.
Global Markets income was up 28 per cent with broad-based growth across all
products. Macro Trading increased 28 per cent with double-digit growth across
Rates and Commodities while Credit Trading income grew 24 per cent. Flow
income grew by 19 per cent supported by sustained momentum from our key
strategic initiatives and investments, while episodic income increased by 50
per cent, benefitting from heighted market volatility which led to elevated
client activity.
Wealth Solutions income was up 24 per cent, driven by double-digit growth in
both Investment Products and Bancassurance, in particular capital market
products. This was driven by continued investment in product innovation,
digitisation and advisory capabilities; and sustained momentum in Affluent
new-to-bank with 135,000 clients onboarded in the first half of 2025, and $28
billion of Affluent net new money.
- page 10 -
Deposits & Mortgages income was down 3 per cent as growth in Mortgages
income was more than fully offset by a decline in Deposit income. Mortgage
income was up, driven by margin expansion and higher volumes in select markets
as interest rates declined. Deposit income was reduced as the impact of margin
compression in a lower interest rate environment was partly offset by higher
volumes and pricing actions.
Credit Cards and Personal Loans (CCPL) & Other Unsecured Lending income
was up 2 per cent as benefit from margin expansion was partly offset by lower
volumes resulting from portfolio optimisation actions.
Ventures income increased $242 million as SC Ventures booked a $238 million
gain relating to the Solv India transaction (refer to note 6). Digital Banks
income increased by $26 million from continued increase in lending and deposit
volumes.
Treasury & Other income increased $56 million as the benefit to income
from the repricing of longer dated assets and roll-off of the legacy
loss-making short-term hedges in February 2024 was partly offset by the
non-repeat of the notable items.
Profit before tax by client segment
H1'25 H1'242 Change Constant currency change1 Q2'25 Q2'242 Change Constant currency change1 Q1'25 Change Constant currency change
$million
$million
%
%
$million
$million
%
%
$million
%
%
Corporate & Investment Banking2 3,442 3,098 11 13 1,701 1,476 15 18 1,741 (2) (1)
Wealth & Retail Banking2 1,398 1,336 5 8 652 654 - 3 746 (13) (12)
Ventures 46 (197) 123 125 130 (86) nm nm (84) nm nm
Central & other items2 (206) (280) 26 35 (80) (216) 63 56 (126) 37 29
Underlying profit before taxation 4,680 3,957 18 22 2,403 1,828 31 34 2,277 6 7
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Underlying profit before taxation has been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025 to
reflect the reallocation of Treasury income and certain costs across segments
The client segment commentary that follows is on an underlying basis and
comparisons are made to the equivalent period in 2024 on a constant currency
basis, unless otherwise stated. H1 2024 included items totalling $258 million
relating to gains on revaluation of FX positions in Egypt and a
hyperinflationary accounting adjustment in Ghana (the notable items).
Corporate & Investment Banking (CIB) profit before taxation increased 13
per cent. Income grew 7 per cent, with strong double-digit growth in Global
Markets and Global Banking partly offset by a decrease in Transaction
Services. Expenses were 3 per cent higher and credit impairments were a net
release of $14 million versus a release of $54 million in the prior year.
Other impairments were lower by $105 million due to a non-repeat of software
asset write-off.
Wealth & Retail Banking (WRB) profit before taxation increased 8 per cent,
with income up 8 per cent led by a record performance in Wealth Solutions.
Expenses increased 7 per cent, mainly from hiring of Affluent relationship
managers and increased investment spend on revenue accretive initiatives.
Credit impairment charge of $332 million was up $65 million, mainly from an
increase in unsecured portfolios and partnerships. However, credit impairment
decreased $30 million in Q2'25 as compared to Q1'25 as a result of portfolio
optimisation actions.
Ventures achieved profit before tax of $46 million compared to a prior year
loss of $197 million, due to a $238 million gain from the Solv India
transaction by SC Ventures. Digital Banks income increased by $30 million
driven by continued growth in customers and volumes. Expenses were up 4%,
while the $24 million impairment charge declined $20 million as delinquency
rates improved in Mox.
Central & other items (C&O) loss before tax improved to $206 million
versus $280 million in the prior year. Treasury benefitted from the repricing
of longer dated assets and roll-off of the legacy loss-making hedges in
February 2024; this was in part offset by the non-repeat of the notable items.
Associates' profit share increased by $32 million, reflecting higher profits
at China Bohai Bank.
- page 11 -
Adjusted net interest income and margin
H1'25 H1'24 Change1 Q2'25 Q2'24 Change1 Q1'25 Change
$million
$million
%
$million
$million
%
$million
%
Adjusted net interest income2 5,499 5,362 3 2,702 2,696 - 2,797 (3)
Average interest-earning assets 541,385 543,788 - 546,709 533,869 2 535,999 2
Average interest-bearing liabilities 564,056 537,608 5 571,401 538,054 6 556,629 3
Gross yield (%)3 4.75 5.39 (64) 4.61 5.42 (81) 4.89 (28)
Rate paid (%)3 2.59 3.44 85 2.51 3.36 85 2.67 16
Net yield (%)3 2.16 1.95 21 2.10 2.06 4 2.22 (12)
Net interest margin (%)3,4 2.05 1.98 7 1.98 2.03 (5) 2.12 (14)
1 Variance is better/(worse), other than assets and liabilities which is
increase/(decrease)
2 Adjusted net interest income has been re-presented in line with the RNS
on Re-Presentation of Financial Information issued on 2 April 2025 to reflect
the reclassification of funding cost mismatches to non NII. Adjusted net
interest income is reported net interest income less trading book funding
cost, Treasury currency management activities, cash collateral and prime
services
3 Change is the basis points (bps) difference between the two periods
rather than the percentage change. Net interest margin has been re-presented
due to the revision to Adjusted net interest income as outlined in footnote 2
4 Adjusted net interest income divided by average interest-earning assets,
annualised
Adjusted net interest income increased 3 per cent, driven by increase in the
net interest margin which averaged 205 basis points during the first half,
increasing 7 basis points year-on-year. An improvement in asset and deposit
mix and benefit from roll-off of legacy short-term hedges was partly offset by
lower interest rates, leading to margin compression, while volumes were
broadly stable.
Adjusted net interest income in the second quarter declined 3 per cent
compared to the prior quarter, as volume growth was more than offset by the
drag from lower interest rates and margin compression. Average
interest-earning assets were up $11 billion on the prior quarter driven by
strong growth across products in Global Banking, Mortgages and Wealth
Solutions partly offset by lower trade volumes. Average interest-bearing
liabilities were up by $15 billion on the prior quarter mostly from growth in
CIB and WRB deposits. Gross yields and rates paid decreased 28 basis points
and 16 basis points respectively, reflecting a declining interest rate
environment, while the impact of changes in balance sheet mix was broadly
neutral in the quarter. This resulted in a net interest margin drop of 14
basis points compared to the prior quarter.
Credit risk summary
Income statement (Underlying view)
H1'25 H1'24 Change1 Q2'25 Q2'24 Change1 Q1'25 Change1
$million
$million
%
$million
$million
%
$million
%
Total credit impairment charge/(release)2 336 249 35 117 73 60 219 (47)
Of which stage 1 and 22 179 73 145 67 12 nm 112 (40)
Of which stage 32 157 176 (11) 50 61 (18) 107 (53)
1 Variance is increase/(decrease) comparing current reporting period to
prior reporting period
2 Refer to Credit Impairment charge table in Risk review for reconciliation
from underlying to reported credit impairment
- page 12 -
Balance sheet
30.06.25 31.03.25 Change1 31.12.24 Change1 30.06.24 Change1
$million
$million
%
$million
%
$million
%
Gross loans and advances to customers2 291,811 286,812 2 285,936 2 280,893 4
Of which stage 1 273,155 269,282 1 269,102 2 264,249 3
Of which stage 2 12,520 11,447 9 10,631 18 10,005 25
Of which stage 3 6,136 6,083 1 6,203 (1) 6,639 (8)
Expected credit loss provisions (5,080) (5,024) 1 (4,904) 4 (4,997) 2
Of which stage 1 (553) (537) 3 (483) 14 (480) 15
Of which stage 2 (465) (462) 1 (473) (2) (362) 28
Of which stage 3 (4,062) (4,025) 1 (3,948) 3 (4,155) (2)
Net loans and advances to customers 286,731 281,788 2 281,032 2 275,896 4
Of which stage 1 272,602 268,745 1 268,619 1 263,769 3
Of which stage 2 12,055 10,985 10 10,158 19 9,643 25
Of which stage 3 2,074 2,058 1 2,255 (8) 2,484 (17)
Cover ratio of stage 3 before/after collateral (%)3 66/82 66/81 0/1 64/78 2/4 63/82 3/0
Credit grade 12 accounts ($million) 2,095 1,797 17 969 116 964 117
Early alerts ($million) 4,485 4,451 1 5,559 (19) 5,044 (11)
Investment-grade corporate exposures (%)3 75 74 1 74 1 74 1
Aggregate top 20 corporate exposures as a percentage of Tier 1 capital3,4 56 60 (4) 61 (5) 58 (2)
1 Variance is increase/(decrease) comparing current reporting period to
prior reporting period
2 Includes reverse repurchase agreements and other similar secured lending
held at amortised cost of $4,189 million (31 March 2025: $6,797 million; 31
December 2024: $9,660 million; 30 June 2024: $7,788 million)
3 Change is the percentage points difference between the two points rather
than the percentage change
4 Excludes reverse repurchase agreements
Asset quality remained resilient in the first half, with an improvement in a
number of underlying credit metrics. The Group continues to actively manage
the credit portfolio while remaining alert to a volatile and challenging
external environment including increased geopolitical tensions and evolving
policy changes which may lead to idiosyncratic stress in a select number of
geographies and industry sectors.
Credit impairment was a $336 million charge in the first half, up $87 million
year-on-year, and representing an annualised loan-loss rate of 19 basis
points. WRB charges for the first half totalled $332 million, up $65 million
mainly from increased charges in unsecured and partnership portfolios. There
was a $24 million charge in Ventures, down $20 million year-on-year as
delinquency rates have improved in Mox following a change in credit criteria.
In CIB, there was a net release of $14 million as releases from sovereign
upgrades were in part offset by a low level of client downgrades. During the
first half, the non-linearity impact increased by $34 million to $77 million.
This reflects an increased probability weighting of the two downside scenarios
from 32 per cent as at 31 December 2024 to 45 per cent while the base
forecast probability weighting reduced from 68 per cent as at 31 December 2024
to 55 per cent. The Group retains a China commercial real estate (CRE)
management overlay of $58 million and a $35 million overlay for clients who
have exposure to the Hong Kong CRE sector. During the second quarter, CRE
overlays dropped by $14 million for China CRE primarily driven by repayments
and utilisation due to movement to stage 3 and $12 million for Hong Kong CRE
due to risks being partially manifested in the portfolio modelled ECL.
Gross stage 3 loans and advances to customers of $6.1 billion remained broadly
flat compared with 31 December 2024, as new inflows were mostly offset by
repayments, client upgrades, a reduction in exposures and write-offs.
Credit-impaired loans represent 2.1 per cent of gross loans and advances, down
7 basis points as compared with 31 December 2024.
The stage 3 cover ratio of 66 per cent improved 2 percentage points as
compared with 31 December 2024, while the cover ratio post collateral at 82
per cent increased by 4 percentage points due to an increase in stage 3
provisions and a slight reduction in gross stage 3 balances.
Credit grade 12 balances increased $1.1 billion since 31 December 2024 to $2.1
billion reflecting downgrades from Early Alert accounts and upgrades from
stage 3 assets. The Group continues to carefully monitor its exposures in
select sectors and geographies, given the uncertain and volatile macroeconomic
environment.
The proportion of investment-grade corporate exposures of 75 per cent improved
by 1 percentage point compared with 31 December 2024.
- page 13 -
Restructuring, DVA, FFG and other items
H1'25 H1'24
Restructuring FFG DVA Net gain/loss on businesses disposed of/held Other items Restructuring² FFG² DVA Net loss on businesses disposed of/held Other items1
$million
$million
$million
for sale
$million
$million
$million
$million
for sale3
$million
$million
$million
Operating income 7 - 5 (5) - 48 - (26) (189) -
Operating expenses (129) (153) - - - (197) (86) - - (100)
Credit impairment - - - - - 9 - - - -
Other impairment (3) (7) - - - (4) - - - -
Profit from associates and joint ventures (12) - - - - 80 - - - -
Profit/(loss) before taxation (137) (160) 5 (5) - (64) (86) (26) (189) (100)
1 Other items include $100 million charge relating to Korea equity linked
securities (ELS) portfolio
2 FFG (Fit for Growth) charge previously reported within Restructuring has
been re-presented as a separate item
3 Net loss on businesses disposal includes loss of $174 million relating to
Zimbabwe exit
The Group's statutory performance is adjusted for profits or losses of a
capital nature, amounts consequent to investment transactions driven by
strategic intent, other infrequent and/or exceptional transactions that are
significant or material in the context of the Group's normal business earnings
for the period and items which management and investors would ordinarily
identify separately when assessing underlying performance period-by-period.
Restructuring charges of $137 million reflect the impact of actions to
simplify technology platforms, ongoing charges related to portfolios and
businesses being exited, and optimising the Group's office space and property
footprint.
Charges related to the Fit for Growth programme totalled $160 million.
Movements in Debit Valuation Adjustment (DVA) were positive $5 million, driven
by the widening of Group's asset swap spreads on derivative liability
exposures.
Net loss on businesses disposed of $189 million in the first half of 2024
included $174 million from the sale of Zimbabwe primarily related to the
recycling of FX translation losses from reserves into the income statement,
which had no impact on tangible net asset value and capital.
Balance sheet and liquidity
30.06.25 31.03.25 Change1 31.12.24 Change1 30.06.24 Change1
$million
$million
%
$million
%
$million
%
Assets
Loans and advances to banks 42,386 45,604 (7) 43,593 (3) 45,231 (6)
Loans and advances to customers 286,731 281,788 2 281,032 2 275,896 4
Other assets 584,819 547,054 7 525,063 11 514,300 14
Total assets 913,936 874,446 5 849,688 8 835,427 9
Liabilities
Deposits by banks 30,883 28,569 8 25,400 22 28,087 10
Customer accounts 517,390 490,921 5 464,489 11 468,157 11
Other liabilities 310,993 302,488 3 308,515 1 287,856 8
Total liabilities 859,266 821,978 5 798,404 8 784,100 10
Equity 54,670 52,468 4 51,284 7 51,327 7
Total equity and liabilities 913,936 874,446 5 849,688 8 835,427 9
Advances-to-deposits ratio (%)2 51.0 51.8 53.3 52.6
Liquidity coverage ratio (%) 146 147 138 148
1 Variance is increase/(decrease) comparing current reporting period to
prior reporting periods
2 The Group excludes $14,239 million held with central banks (31 March
2025: $15,847 million, 31 December 2024: $19,187 million and 30 June 2024:
$18,419 million) that has been confirmed as repayable at the point of stress.
Advances exclude reverse repurchase agreement and other similar secured
lending of $4,189 million (31 March 2025: $6,797 million, 31 December 2024:
$9,660 million and 30 June 2024: $7,788 million) and include loans and
advances to customers held at fair value through profit or loss of $8,119
million (31 March 2025: $7,692 million, 31 December 2024: $7,084 million and
30 June 2024: $6,877 million). Deposits include customer accounts held at fair
value through profit or loss of $24,958 million (31 March 2025: $24,642
million, 31 December 2024: $21,772 million and 30 June 2024: $19,850 million)
- page 14 -
The Group's balance sheet remains strong, liquid and well diversified.
Loans and advances to customers increased by $6 billion from 31 December 2024.
Underlying growth was $8 billion or 3 per cent excluding the impact of a $11
billion reduction from Treasury and securities-based loans held to collect and
a $9 billion increase from currency translation. The underlying growth is
primarily driven by Global Banking in CIB, and Mortgages and Wealth Solutions
in WRB.
Customer accounts of $517 billion increased by $53 billion from 31 December
2024. Excluding a $10 billion increase from currency translation, customer
accounts increased by $44 billion, or 9 per cent, driven by an increase of $19
billion in CIB Current and Savings Account (CASA), a $5 billion increase in
Corporate Term Deposits and a $19 billion increase in WRB across CASA and Time
Deposits from targeted campaigns and Affluent net new money inflows.
Other assets increased 11 per cent, or $60 billion, from 31 December 2024.
Financial assets held at FVTPL increased by $24 billion, primarily in debt
securities and reverse repurchase agreements, while other assets increased by
$11 billion from higher volumes of unsettled trades in Global Markets and
increased $11 billion from precious metals. Investment securities and central
bank balances increased by $ 14 billion and $17 billion respectively. These
increases were partly offset by a $17 billion decrease in derivative asset
balances.
Other liabilities increased 1 per cent or $2 billion, from 31 December 2024.
Financial liabilities held at fair value through profit and loss increased by
$14 billion, other liabilities increased by $4 billion and debt securities in
issue increased by $5 billion. This was offset by a decrease of $12 billion in
derivative balances and a $7 billion decrease in repurchase agreements.
The advances-to-deposits ratio decreased to 51 per cent from 53.3 per cent as
of 31 December 2024. The point-in-time liquidity coverage ratio increased 8
percentage points in the first half to 146 per cent and remains well above the
minimum regulatory requirement of 100 per cent.
Risk-weighted assets (RWAs)
30.06.25 31.03.25 Change1 31.12.24 Change1 30.06.24 Change1
$million
$million
%
$million
%
$million
%
By risk type
Credit risk 191,348 184,274 4 189,303 1 185,004 3
Operational risk 32,578 32,578 - 29,479 11 29,479 11
Market risk 35,758 36,744 (3) 28,283 26 27,443 30
Total RWAs 259,684 253,596 2 247,065 5 241,926 7
1 Variance is increase/(decrease) comparing current reporting period to
prior reporting periods
Total RWAs of $259.7 billion increased $12.6 billion or 5.1 per cent in
comparison to 31 December 2024:
• Credit risk RWA increased by $2.0 billion to $191.3 billion. This was
primarily driven by an increase of $4.1 billion from asset growth and adverse
credit migration, $5.0 billion from currency translation, partly offset by a
decrease of $5.6 billion from optimisation actions and a $1.4 billion
reduction from changes in models and methodology.
• Operational risk RWA increased by $3.1 billion to $32.6 billion mainly due
to an increase in average income as measured over a rolling three-year time
horizon with higher 2024 income replacing lower 2021 income.
• Market risk RWA increased by $7.5 billion to $35.8 billion as RWAs were
deployed to help clients capture market opportunities.
Capital base and ratios
30.06.25 31.03.25 Change1 31.12.24 Change1 30.06.24 Change¹
$million
$million
%
$million
%
$million
%
CET1 capital 37,260 35,122 6 35,190 6 35,418 5
Additional Tier 1 capital (AT1) 6,517 7,507 (13) 6,482 1 6,484 1
Tier 1 capital 43,777 42,629 3 41,672 5 41,902 4
Tier 2 capital 9,504 10,482 (9) 11,419 (17) 11,667 (19)
Total capital 53,281 53,111 - 53,091 - 53,569 (1)
CET1 capital ratio (%)2 14.3 13.8 0.50 14.2 0.11 14.6 (0.29)
Total capital ratio (%)2 20.5 20.9 (0.43) 21.5 (0.97) 22.1 (1.62)
Leverage ratio (%)2 4.7 4.7 (0.01) 4.8 (0.11) 4.8 (0.08)
1 Variance is increase/(decrease) comparing current reporting period to
prior reporting periods
2 Change is percentage points difference between two points rather than
percentage change
The Group's CET1 ratio of 14.3 per cent was up 11 basis points against the
ratio as at 31 December 2024 and remains 3.9 percentage points above the
Group's latest regulatory minimum CET1 requirement. Strong profit accretion
was largely offset by shareholder distributions and an increase in RWAs.
- page 15 -
The 135 basis points of CET1 accretion from profits was supported by a further
11 basis points uplift from the combination of currency translation, fair
value gains in other comprehensive income and certain regulatory capital
adjustments. This was partly offset by 52 basis points reduction from an
increase in RWA.
The Group spent $1.37 billion purchasing 93.5 million ordinary shares of $0.50
each during the first half, representing a volume weighted average price per
share of £11.18. These shares were subsequently cancelled, reducing the total
issued share capital by 3.9 per cent. The entire $1.5 billion is deducted from
CET1 in the period, reducing the CET1 ratio by approximately 61 basis points.
The Group is accruing a provisional interim 2025 ordinary share dividend over
the first half of 2025, which is calculated formulaically at one-third of the
ordinary dividend paid in 2024, or 12.3 cents a share. This, combined with
payments due to AT1 and preference shareholders, reduced the CET1 ratio by 23
basis points.
The Board has decided to carry out a share buyback commencing imminently for
up to a maximum consideration of $1.3 billion to further reduce the number of
ordinary shares in issue by cancelling the repurchased shares. The terms of
the buyback will be announced, and it is expected to reduce the Group's CET1
ratio in the third quarter of 2025 by approximately 50 basis points.
The Group's leverage ratio of 4.7 per cent is 11 basis points lower than as at
31 December 2024. The Group's leverage ratio remains significantly above its
minimum requirement of 3.7 per cent.
- page 16 -
Supplementary financial information
Underlying performance by client segment
H1'25 H1'242
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Total Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Total
$million
$million
$million
other items
$million
$million
$million
$million
other items
$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/(loss) from associates and - - (11) 102 91 - - (6) 70 64
joint ventures
Underlying profit/(loss) before taxation 3,442 1,398 46 (206) 4,680 3,098 1,336 (197) (280) 3,957
Restructuring & (146) (130) (1) (20) (297) (77) (195) (1) (192) (465)
Other items
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 204,812 126,712 1,555 17,539 350,618 190,474 120,258 1,110 23,865 335,707
and advances
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
Risk-weighted assets 182,129 57,610 3,288 16,657 259,684 162,682 57,440 2,129 19,675 241,926
Income return on risk-weighted assets (%) 7.5 14.9 24.2 (1.7) 8.6 7.6 13.3 8.2 (1.7) 8.1
Underlying return on tangible equity (%) 19.6 25.3 nm (12.3) 18.1 17.3 22.0 nm (10.7) 14.0
Cost to income 47.9 58.4 nm nm 54.7 49.2 58.0 nm nm 57.0
ratio (%)
1 Customer accounts includes FVTPL and repurchase agreements
2 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025. Please refer
note 2 Basis of preparation for details
- page 17 -
Corporate & Investment Banking
H1'25 H1'247,8 Change2 Constant currency change1,2 Q2'25 Q2'247,8 Change2 Constant currency change1,2 Q1'25 Change2 Constant currency change1,2
$million
$million
%
%
$million
$million
%
%
$million
%
%
Transaction Services 2,996 3,196 (6) (6) 1,469 1,593 (8) (8) 1,527 (4) (4)
Payments & Liquidity 2,074 2,300 (10) (9) 1,013 1,139 (11) (11) 1,061 (5) (5)
Securities & Prime Services 309 294 5 6 158 153 3 4 151 5 5
Trade & Working Capital 613 602 2 3 298 301 (1) - 315 (5) (6)
Global Banking 1,096 960 14 14 548 488 12 12 548 - (1)
Lending & Financial Solutions 928 836 11 11 476 422 13 12 452 5 4
Capital Market & Advisory 168 124 35 37 72 66 9 11 96 (25) (25)
Global Markets 2,355 1,837 28 28 1,172 796 47 47 1,183 (1) (1)
Macro Trading 1,939 1,515 28 28 961 631 52 52 978 (2) (2)
Credit Trading 409 332 23 24 187 165 13 14 222 (16) (16)
Valuation & Other Adj 7 (10) 170 170 24 - nm nm (17) nm nm
Treasury & Other 136 201 (32) (30) 72 105 (31) (30) 64 13 12
Operating income8 6,583 6,194 6 7 3,261 2,982 9 9 3,322 (2) (2)
Operating expenses (3,155) (3,045) (4) (3) (1,602) (1,518) (6) (3) (1,553) (3) (1)
Operating profit before impairment losses and taxation 3,428 3,149 9 10 1,659 1,464 13 16 1,769 (6) (5)
Credit impairment 14 54 (74) (72) 44 63 (30) (24) (30) nm nm
Other impairment - (105) 100 100 (1) (51) 98 98 1 nm nm
Profit from associates and - - nm nm (1) - nm nm 1 nm nm
joint ventures
Underlying profit before taxation 3,442 3,098 11 13 1,701 1,476 15 18 1,741 (2) (1)
Restructuring & Other items (146) (77) (90) (93) (49) 3 nm nm (97) 49 48
Reported profit before taxation 3,296 3,021 9 11 1,652 1,479 12 14 1,644 - 2
Total assets 512,928 443,567 16 15 512,928 443,567 16 15 494,395 4 3
Of which: loans and advances 204,812 190,474 8 7 204,812 190,474 8 7 203,757 1 (1)
to customers³
Total liabilities 507,646 469,158 8 7 507,646 469,158 8 7 485,427 5 3
Of which: customer accounts⁴ 332,952 316,543 5 4 332,952 316,543 5 4 319,507 4 3
Risk-weighted assets 182,129 162,682 12 nm 182,129 162,682 12 nm 175,445 4 nm
Income return on risk-weighted assets (%)⁵ 7.5 7.6 (10)bps nm 7.3 7.3 - nm 7.7 (40)bps nm
Underlying return on tangible 19.6 17.3 230bps nm 19.4 14.7 470bps nm 19.8 (40)bps nm
equity (%)⁵
Cost to income ratio (%)⁶ 47.9 49.2 1.3 1.7 49.1 50.9 1.8 2.8 46.7 (2) (1)
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Variance is better/(worse), other than risk-weighted assets, assets and
liabilities, which is increase/(decrease)
3 Loans and advances to customers includes FVTPL and reverse repurchase
agreements
4 Customer accounts includes FVTPL and repurchase agreements
5 Change is the basis points (bps) difference between the two periods
rather than the percentage change
6 Change is the percentage points difference between the two periods
rather than the percentage change
7 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
8 Products have been re-presented in line with the RNS on Re-Presentation
of Financial Information issued on 2 April 2025
Performance highlights
All commentary below is on underlying basis. Percentage changes are shown on a
constant currency basis versus the equivalent period in 2024 unless otherwise
stated; reported dollar amount variances use actual exchange rates unless
otherwise noted.
• Underlying profit before tax of $3,442 million, an increase of 13 per
cent, primarily driven by strong growth in operating income, partly offset by
higher operating expenses and lower impairment.
• Underlying operating income of $6,583 million increased 7 per cent, driven
by strong performance in Global Markets and Global Banking. Global Markets
income grew by 28 per cent, supported by strong growth across both flow and
episodic income. Global Banking delivered double-digit growth of 14 per cent,
driven by increased origination and distribution volumes. Transaction Services
income declined by 6 per cent, with Payments & Liquidity down 9 per cent
reflecting margin compression from lower interest rates, partly mitigated by
active passthrough-rate management, growth in balances and higher fees.
Securities Services income increased 6 per cent, largely supported by fee
growth from higher client activity. Trade & Working Capital income rose by
3 per cent driven by higher fee income.
- page 18 -
• Operating expenses of $3,155 million increased by 3 per cent, mainly due
to inflation and strategic investments, although this was part funded by
efficiencies from the Fit for Growth programme. Cost growth remains
well-managed relative to income momentum.
• Credit impairment was a net release of $14 million as releases from
sovereign upgrades were in part offset by a low level of client downgrades.
Other impairment declined by $105 million year-on-year, largely due to the
non-repeat of prior-year software asset write-offs.
• Loans and advances to customers grew by 2 per cent since 31 December 2024,
primarily driven by higher origination volumes in Global Banking.
Wealth & Retail Banking
H1'25 H1'248,9 Change2 Constant currency change1,2 Q2'25 Q2'248,9 Change2 Constant currency change1,2 Q1'25 Change2 Constant currency change1,2
$million
$million
%
%
$million
$million
%
%
$million
%
%
Wealth Solutions 1,519 1,234 23 24 742 618 20 20 777 (5) (5)
Investment Products 1,103 868 27 28 544 444 23 22 559 (3) (3)
Bancassurance 416 366 14 15 198 174 14 14 218 (9) (10)
Deposits & Mortgages 1,996 2,061 (3) (3) 990 1,041 (5) (5) 1,006 (2) (2)
CCPL & Other Unsecured Lending 539 530 2 2 282 270 4 4 257 10 9
Treasury & Other 108 59 83 86 38 45 (16) (20) 70 (46) (48)
Operating income9 4,162 3,884 7 8 2,052 1,974 4 4 2,110 (3) (4)
Operating expenses (2,429) (2,254) (8) (7) (1,248) (1,169) (7) (4) (1,181) (6) (4)
Operating profit before impairment losses and taxation 1,733 1,630 6 9 804 805 - 3 929 (13) (13)
Credit impairment (332) (267) (24) (26) (153) (128) (20) (20) (179) 15 17
Other impairment (3) (27) 89 89 1 (23) 104 104 (4) 125 125
Underlying profit before taxation 1,398 1,336 5 8 652 654 - 3 746 (13) (12)
Restructuring & Other items3 (130) (195) 33 31 (55) (62) 11 14 (75) 27 27
Reported profit before taxation 1,268 1,141 11 14 597 592 1 5 671 (11) (10)
Total assets 129,591 122,625 6 3 129,591 122,625 6 3 123,698 5 1
Of which: loans and advances 126,712 120,258 5 2 126,712 120,258 5 2 121,031 5 1
to customers4
Total liabilities 244,591 208,419 17 15 244,591 208,419 17 15 227,645 7 6
Of which: customer accounts7 240,612 204,221 18 16 240,612 204,221 18 16 223,847 7 6
Risk-weighted assets 57,610 57,440 - nm 57,610 57,440 - nm 56,704 2 nm
Income return on risk-weighted assets (%)5 14.9 13.3 160bps nm 14.7 13.6 110bps nm 15.1 (40)bps nm
Underlying return on tangible 25.3 22.0 330bps nm 24.0 21.3 270bps nm 26.7 (270)bps nm
equity (%)5
Cost to income ratio (%)6 58.4 58.0 (0.4) 0.5 60.8 59.2 (1.6) (0.3) 56.0 (4.8) (4.3)
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Variance is better/(worse), other than risk-weighted assets, assets and
liabilities, which is increase/(decrease)
3 Other items in H1 2024 include $100 million provision relating to Korea
ELS
4 Loans and advances to customers includes FVTPL
5 Change is the basis points (bps) difference between the two periods
rather than the percentage change
6 Change is the percentage points difference between the two periods
rather than the percentage change
7 Customer accounts includes FVTPL
8 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
9 Products have been re-presented in line with the RNS on Re-Presentation
of Financial Information issued on 2 April 2025
Performance highlights
All commentary below is on underlying basis. Percentage changes are shown on a
constant currency basis versus the equivalent period in 2024 unless otherwise
stated; reported dollar amount variances use actual exchange rates unless
otherwise noted.
• Underlying profit before tax of $1,398 million, increased by 8 per cent
reflecting strong income growth, partly offset by higher operating expenses
and higher impairments.
• Operating income of $4,162 million increased by 8 per cent, primarily
driven by robust 24 per cent growth in Wealth Solutions. Within Wealth
Solutions, there was growth across all products, in particular capital market
products driven by continued investment in product innovation, digitisation
and advisory capabilities; and sustained momentum in affluent new-to-bank with
135,000 clients onboarded in the first half of 2025 and $28 billion of
affluent net-new-money.
- page 19 -
• Operating expenses increased by 7 per cent to $2,429 million, reflecting
continued investment in our affluent strategy, including the hiring of
relationship managers, and investments into new products, capabilities and
platforms, partly offset by efficiency savings from the Fit for Growth
programme.
• Credit impairment charges increased to $332 million, reflecting higher
delinquencies in unsecured portfolios partly offset by portfolio optimisation
actions.
Ventures
H1'25 H1'247 Change2 Constant currency change1,2 Q2'25 Q2'247 Change2 Constant currency change1,2 Q1'25 Change2 Constant currency change1,2
$million
$million
%
%
$million
$million
%
%
$million
%
%
Digital Banks 88 62 42 48 46 33 39 48 42 10 5
SCV 232 18 nm nm 232 15 nm nm - nm nm
Operating income 320 80 nm nm 278 48 nm nm 42 nm nm
Operating expenses (239) (228) (5) (4) (127) (116) (9) (7) (112) (13) (11)
Operating profit/(loss) before impairment losses and taxation 81 (148) 155 156 151 (68) nm nm (70) nm nm
Credit impairment (24) (43) 44 45 (14) (15) 7 7 (10) (40) (40)
Loss from associates and (11) (6) (83) (83) (7) (3) (133) (133) (4) (75) (75)
joint ventures
Underlying profit/(loss) 46 (197) 123 125 130 (86) nm nm (84) nm nm
before taxation
Restructuring (1) (1) - - (1) (1) - - - nm nm
Reported profit/(loss) 45 (198) 123 124 129 (87) nm nm (84) nm nm
before taxation
Total assets 7,534 5,115 47 42 7,534 5,115 47 42 6,791 11 11
Of which: loans and advances 1,555 1,110 40 38 1,555 1,110 40 38 1,472 6 4
to customers3
Total liabilities 6,010 4,347 38 34 6,010 4,347 38 34 5,740 5 2
Of which: customer accounts6 5,718 4,046 41 37 5,718 4,046 41 37 5,379 6 4
Risk-weighted assets 3,288 2,129 54 nm 3,288 2,129 54 nm 2,589 27 nm
Income return on risk-weighted assets (%)4 24.2 8.2 nm nm 39.8 9.1 nm nm 6.7 nm nm
Underlying return on tangible nm nm nm nm nm nm nm nm nm nm nm
equity (%)4
Cost-to-income ratio (%)5 nm nm nm nm nm nm nm nm nm nm nm
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Variance is better/(worse) other than risk-weighted assets, assets and
liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL
4 Change is the basis points (bps) difference between the two periods
rather than the percentage change
5 Change is the percentage points difference between the two periods
rather than the percentage change
6 Customer accounts includes FVTPL
7 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
Performance highlights
All commentary below is on underlying basis. Percentage changes are shown on a
constant currency basis versus the equivalent period in 2024 unless otherwise
stated; reported dollar amount variances use actual exchange rates unless
otherwise noted.
• Underlying profit before tax increased by $243 million to $46 million,
mostly driven by a gain from the Solv India transaction of $238 million. Our
digital banks, Mox and Trust, continue to scale rapidly, with income up 48 per
cent.
• Operating expenses increased by 4 per cent, primarily due to increased
costs from the consolidated Ventures as they continue to build, partly offset
by efficiency saves within the Digital Banks and SCV platform costs.
• Credit impairment decreased by 45 per cent to $24 million, reflecting
improved delinquency rates in Mox.
• Strong balance sheet expansion reflecting both customer and volume growth
in the digital banks. Loans and advances to customers of $1.6 billion
increased by 11 per cent since 31 December 2024, while customer deposits
increased by 12 per cent to $5.7 billion.
- page 20 -
Central & other items
H1'25 H1'248,9 Change2 Constant currency change1,2 Q2'25 Q2'248,9 Change2 Constant currency change1,2 Q1'25 Change2 Constant currency change1,2
$million
$million
%
%
$million
$million
%
%
$million
%
%
Treasury & Other9 (166) (200) 17 29 (82) (198) 59 53 (84) 2 2
Operating income (166) (200) 17 29 (82) (198) 59 53 (84) 2 2
Operating expenses (142) (146) 3 5 (73) (84) 13 12 (69) (6) (10)
Operating (loss)/profit before impairment losses and taxation (308) (346) 11 19 (155) (282) 45 40 (153) (1) (3)
Credit impairment 6 7 (14) (14) 6 7 (14) (17) - nm nm
Other impairment (6) (11) 45 54 (3) (9) 67 70 (3) - -
Profit from associates and 102 70 46 46 72 68 6 - 30 140 109
joint ventures
Underlying (loss)/profit (206) (280) 26 35 (80) (216) 63 56 (126) 37 29
before taxation
Restructuring & Other items7 (20) (192) 90 90 (18) (190) 91 91 (2) nm nm
Reported (loss)/profit (226) (472) 52 56 (98) (406) 76 73 (128) 23 16
before taxation
Total assets 263,883 264,120 - (2) 263,883 264,120 - (2) 249,562 6 4
Of which: loans and advances 17,539 23,865 (27) (30) 17,539 23,865 (27) (30) 18,371 (5) (6)
to customers3
Total liabilities 101,019 102,176 (1) (1) 101,019 102,176 (1) (1) 103,166 (2) (2)
Of which: customer accounts6 2,851 7,452 (62) (62) 2,851 7,452 (62) (62) 5,385 (47) (47)
Risk-weighted assets 16,657 19,675 (15) nm 16,657 19,675 (15) nm 18,858 (12) nm
Income return on risk-weighted assets (%)4 (1.7) (1.7) - nm (1.6) (3.6) 200bps nm (1.7) 10bps nm
Underlying return on tangible (12.3) (10.7) (160)bps nm (3.2) (6.0) 280bps nm (21.8) nm nm
equity (%)4
Cost to income ratio (%)5 nm nm nm nm nm nm nm nm nm nm nm
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Variance is better/(worse) other than risk-weighted assets, assets and
liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL
4 Change is the basis points (bps) difference between the two periods
rather than the percentage change
5 Change is the percentage points difference between the two periods
rather than the percentage change
6 Customer accounts includes FVTPL
7 Other items in H1 2024 includes $174 million primarily relating to
recycling of FX translation losses from reserves into profit and loss on the
sale of Zimbabwe
8 Segment results have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
9 Products have been re-presented in line with the RNS on Re-Presentation
of Financial Information issued on 2 April 2025
Performance highlights
All commentary below is on underlying basis. Percentage changes are shown on a
constant currency basis versus the equivalent period in 2024 unless otherwise
stated; reported dollar amount variances use actual exchange rates unless
otherwise noted.
• Underlying loss before tax of $206 million reduced by $74 million
year-on-year, mainly driven by lower income losses and a $32 million increase
in profit from associates and joint ventures, mostly relating to the Group's
investment in China Bohai Bank.
• Income loss of $166 million improved by $34 million year-on-year. Treasury
income increased $153 million to $(26) million, benefitting from the
maturation of short-term hedges in the first half of 2024, and improved yields
from repricing longer-dated Treasury assets partly offset by the non-repeat of
translation gains on the revaluation of FX positions in Egypt. Other income
was down $119 million to $(140) million, primarily reflecting the non-repeat
of hyperinflation accounting adjustments in Ghana.
- page 21 -
Underlying performance by key market
The following tables provide information for key markets in which the Group
operates. These numbers are prepared in line with the RNS on Re-Presentation
of Financial Information issued on 2 April 2025.
H1'25
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 2,775 561 666 290 1,651 795 606 901 598 2,056 10,899
Operating expenses (1,160) (367) (398) (165) (805) (442) (295) (820) (286) (1,227) (5,965)
Operating profit before impairment losses and taxation 1,615 194 268 125 846 353 311 81 312 829 4,934
Credit impairment (168) (27) (57) (18) (48) (19) 16 24 - (39) (336)
Other impairment (1) 1 (3) - (1) (1) - (1) - (3) (9)
Profit from associates and - - 103 - 1 - - (2) - (11) 91
joint ventures
Underlying profit before taxation 1,446 168 311 107 798 333 327 102 312 776 4,680
Total assets employed 209,923 53,654 45,573 24,526 114,423 33,336 21,902 265,713 56,506 88,380 913,936
Of which: loans and advances 86,140 31,328 15,243 12,628 65,063 13,616 8,464 65,615 22,039 30,482 350,618
to customers1
Total liabilities employed 214,165 45,178 38,422 21,401 109,253 25,260 18,323 258,501 47,405 81,358 859,266
Of which: customer accounts2 187,036 35,057 30,959 18,841 99,094 17,383 15,471 99,032 18,277 60,983 582,133
H1'243
Hong Kong Korea China Taiwan Singapore India UAE UK US Other4 Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 2,211 580 748 300 1,291 753 642 753 436 2,244 9,958
Operating expenses (1,061) (327) (435) (164) (781) (440) (258) (730) (271) (1,206) (5,673)
Operating profit before impairment losses and taxation 1,150 253 313 136 510 313 384 23 165 1,038 4,285
Credit impairment (93) (19) (87) (19) (15) (8) 4 12 (1) (23) (249)
Other impairment (14) (1) (4) - (101) (6) (3) (9) - (5) (143)
Profit from associates and - - 72 - 3 - - (3) - (8) 64
joint ventures
Underlying profit before taxation 1,043 233 294 117 397 299 385 23 164 1,002 3,957
Total assets employed5 191,794 50,798 45,164 21,221 103,825 34,835 22,207 232,519 58,984 74,080 835,427
Of which: loans and advances 82,324 26,944 16,749 11,002 65,265 14,797 8,445 65,738 16,313 28,130 335,707
to customers1
Total liabilities employed5 189,615 42,082 36,366 18,794 92,547 27,267 19,737 242,944 42,660 72,088 784,100
Of which: customer accounts2 163,742 32,323 27,081 16,983 83,078 20,661 16,459 97,722 17,528 56,685 532,262
1 Loans and advances to customers includes FVTPL and reverse repurchase
agreements
2 Customer accounts includes FVTPL and repurchase agreements
3 Underlying profit before taxation has been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025
4 Other includes notable items of Egypt revaluation and Ghana
hyperinflation
5 Balance sheet numbers have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
- page 22 -
Quarterly underlying operating income by product
Q2'25 Q1'25 Q4'241 Q3'241 Q2'241 Q1'241 Q4'231 Q3'231
$million
$million
$million
$million
$million
$million
$million
$million
Transaction Services 1,469 1,527 1,666 1,572 1,593 1,603 1,647 1,654
Payments & Liquidity 1,013 1,061 1,193 1,112 1,139 1,161 1,207 1,196
Securities & Prime Services 158 151 161 156 153 141 140 138
Trade & Working Capital 298 315 312 304 301 301 300 320
Global Banking 548 548 500 475 488 472 400 447
Lending & Financial Solutions 476 452 434 407 422 414 358 393
Capital Markets & Advisory 72 96 66 68 66 58 42 54
Global Markets 1,172 1,183 773 840 796 1,041 534 716
Macro Trading 961 978 654 683 631 884 463 595
Credit Trading 187 222 138 174 165 167 92 122
Valuation & Other Adj 24 (17) (19) (17) - (10) (21) (1)
Wealth Solutions 742 777 562 694 618 616 412 526
Investment Products 544 559 452 507 444 424 298 364
Bancassurance 198 218 110 187 174 192 114 162
Deposits & Mortgages 990 1,006 1,058 1,051 1,041 1,020 1,008 1,036
CCPL & Other Unsecured Lending 282 257 270 281 270 260 259 270
Ventures 278 42 60 43 48 32 32 35
Digital Banks 46 42 41 39 33 29 26 27
SCV 232 - 19 4 15 3 6 8
Treasury & Other 28 50 (55) (52) (48) 108 (268) (281)
Total underlying operating income 5,509 5,390 4,834 4,904 4,806 5,152 4,024 4,403
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
Earnings per ordinary share
H1'25 H1'24 Change Q2'25 Q2'24 Change Q1'25 Change
$million
$million
%
$million
$million
%
$million
%
Profit for the period attributable to 3,326 2,369 40 1,734 974 78 1,592 9
equity holders
Non-controlling interest (17) 9 nm (15) 1 nm (2) nm
Dividend payable on preference shares (244) (209) (17) (11) (29) 62 (233) 95
and AT1 classified as equity
Profit for the period attributable to 3,065 2,169 41 1,708 946 81 1,357 26
ordinary shareholders
Items normalised:2
Restructuring 137 64 114 40 19 111 97 (59)
FFG 160 86 86 87 76 14 73 19
DVA (5) 26 nm (9) (22) 59 4 nm
Net loss on sale of businesses 5 189 (97) 5 177 (97) - nm
Other items - 100 nm - - nm - nm
Tax on normalised items (55) (67) 18 (26) (22) (18) (29) 10
Underlying profit attributable to 3,307 2,567 29 1,805 1,174 54 1,502 20
ordinary shareholders
Basic - Weighted average number of 2,375 2,605 (9) 2,355 2,578 (9) 2,396 (2)
shares (millions)
Diluted - Weighted average number of 2,443 2,669 (8) 2,422 2,645 (8) 2,464 (2)
shares (millions)
Basic earnings per ordinary share (cents)1 129.1 83.3 45.8 72.5 36.7 35.8 56.6 15.9
Diluted earnings per ordinary share (cents)1 125.5 81.3 44.2 70.5 35.8 34.7 55.1 15.4
Underlying basic earnings per ordinary 139.2 98.5 40.7 76.6 45.5 31.1 62.7 13.9
share (cents)1
Underlying diluted earnings per ordinary share (cents)1 135.4 96.2 39.2 74.5 44.4 30.1 61.0 13.5
1 Change is the difference between the two periods rather than the
percentage change
2 Refer to Profit before taxation (PBT) table in underlying versus reported
reconciliation
- page 23 -
Return on Tangible Equity
H1'25 H1'24 Change Q2'25 Q2'24 Change Q1'25 Change
$million
$million
%
$million
$million
%
$million
%
Average parent company Shareholders' Equity 45,077 44,180 2 45,645 44,171 (3) 44,474 3
Less Average preference share capital and (1,494) (1,494) - (1,494) (1,494) - (1,494) -
share premium
Less Average intangible assets (5,907) (6,157) 4 (5,965) (6,128) (3) (5,815) (3)
Average Ordinary Shareholders' 37,676 36,529 3 38,186 36,549 (4) 37,165 3
Tangible Equity
Profit for the period attributable to 3,326 2,369 40 1,734 974 78 1,592 9
equity holders
Non-controlling interests (17) 9 nm (15) 1 nm (2) nm
Dividend payable on preference shares (244) (209) (17) (11) (28) 61 (233) 95
and AT1 classified as equity
Profit for the period attributable to 3,065 2,169 41 1,708 947 80 1,357 26
ordinary shareholders
Items normalised:1
Restructuring 137 64 114 40 19 111 97 (59)
FFG 160 86 86 87 76 14 73 19
DVA (5) 26 nm (9) (22) 59 4 nm
Ventures FVOCI (gains)/losses net of tax 72 (15) nm 72 (3) nm - nm
Net loss on sale of businesses 5 189 (97) 5 177 (97) - nm
Other items - 100 nm - - nm - nm
Tax on normalised items (55) (67) 18 (26) (22) (18) (29) 10
Underlying profit for the period attributable to ordinary shareholders 3,379 2,552 32 1,877 1,172 60 1,502 25
Underlying Return on Tangible Equity 18.1% 14.0% 410bps 19.7% 12.9% 680bps 16.4% 330bps
Reported Return on Tangible Equity 16.4% 11.9% 450bps 17.9% 10.4% 750bps 14.8% 310bps
1 Refer to Profit before taxation (PBT) table in underlying versus reported
reconciliation
Net Tangible Asset Value per Share
30.06.25 30.06.24 Change 31.12.24 Change 31.03.25 Change
$million
$million
%
$million
%
$million
%
Parent company shareholders' equity 46,730 44,413 5 44,388 5 44,559 5
Less preference share capital and share premium (1,494) (1,494) - (1,494) - (1,494) -
Less intangible assets (6,091) (6,103) - (5,791) (5) (5,838) (4)
Net shareholders tangible equity 39,145 36,816 6 37,103 6 37,227 5
Ordinary shares in issue, excluding own shares (millions) 2,330 2,550 (9) 2,408 (3) 2,384 (2)
Net Tangible Asset Value per share (cents)1 1,680 1,444 236 1,541 139 1,561 119
1 Change is cents difference between the two periods rather than percentage
change
- page 24 -
Underlying versus reported results reconciliations
Reconciliations between underlying and reported results are set out in the
tables below:
Operating income by client segment
Reconciliation of underlying versus reported operating income by client
segment set out in note 2 Segmental information.
Net interest income and non NII
H1'25 H1'24
Underlying Restructuring Adjustment for Trading book funding cost Reported Underlying1 Restructuring Adjustment for Trading book funding cost Reported
$million
$million
and others
$million
$million
$million
and others1
$million
$million
$million
Net interest income 5,499 - (2,455) 3,044 5,350 12 (2,187) 3,175
Non NII 5,400 7 2,455 7,862 4,608 (179) 2,187 6,616
Total income 10,899 7 - 10,906 9,958 (167) - 9,791
1 Underlying net interest income has been re-presented in line with the RNS
on Re-Presentation of Financial Information issued on 2 April 2025 to reflect
the reclassification of funding cost mismatches to Underlying non NII
Profit/(loss) before taxation (PBT)
Reconciliation of underlying versus reported PBT set out in note 2 Segmental
information.
Profit/(loss) before taxation (PBT) by client segment
Reconciliation of underlying versus reported PBT by client segment set out in
note 2 Segmental information.
Return on tangible equity (RoTE)
Reconciliation of RoTE is set out in Supplementary financial information.
Net charge-off ratio
30.06.25 30.06.24
Credit impairment (charge)/ release for the year/period Net average exposure Net Credit impairment (charge)/ release for the year/period Net average exposure Net
$million
$million
|charge-off ratio
$million
$million
charge-off ratio
%
%
Stage 1 (18) 313,387 0.01% 46 312,091 (0.01)%
Stage 2 (158) 11,570 1.37% (129) 10,015 1.29%
Stage 3 (156) 2,176 7.17% (173) 2,715 6.37%
Total exposure (332) 327,133 0.10% (256) 324,821 0.08%
- page 25 -
Earnings per ordinary share (EPS)
H1'25
Underlying Restructuring FFG Net loss on sale of businesses Other items DVA Tax on normalised items Reported
$million
$million
$million
$million
$million
$million
$million
$million
Profit/(loss) for the period attributable to ordinary shareholders 3,307 (137) (160) (5) - 5 55 3,065
Basic - Weighted average number of shares (millions) 2,375 2,375
Basic earnings per ordinary 139.2 129.1
share (cents)
H1'24
Underlying Restructuring FFG Net loss on sale of businesses Other items1 DVA Tax on normalised items Reported
$million
$million
$million
$million
$million
$million
$million
$million
Profit/(loss) for the period attributable to ordinary shareholders 2,567 (64) (86) (189) (100) (26) 67 2,169
Basic - Weighted average number of shares (millions) 2,605 - - - - - - 2,605
Basic earnings per ordinary 98.5 - - - - - - 83.3
share (cents)
1 Other items include $100 million provision relating to Korea ELS
- page 26 -
Alternative performance measures
An alternative performance measure is 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. The following are key alternative performance measures used by the
Group to assess financial performance and financial position.
Advances-to-deposits/customer advances-to-deposits (ADR) ratio: The ratio of
total loans and advances to customers relative to total customer accounts,
excluding approved balances held with central banks, confirmed as repayable at
the point of stress. A low advances-to-deposits ratio demonstrates that
customer accounts exceed customer loans resulting from emphasis placed on
generating a high level of stable funding from customers.
Average interest-earning balance: Daily average of the interest-earning assets
and interest-bearing liabilities balances excluding the daily average cash
collateral balances in other assets and other liabilities that are related to
the Global Markets trading book.
Constant currency basis: A performance measure on a constant currency basis is
presented such that comparative periods are adjusted for the current year's
functional currency rate. The following balances are presented on a constant
currency basis when described as such: 1. Operating income, 2. Operating
expenses, 3. Profit before tax and 4. RWAs or risk-weighted assets.
Cost-to-income ratio (CIR): The proportion of total operating expenses to
total operating income.
Cover ratio: The ratio of impairment provisions for each stage to the gross
loan exposure for each stage.
Cover ratio after collateral/cover ratio including collateral: The ratio of
impairment provisions for stage 3 loans and realisable value of collateral
held against these non-performing loan exposures to the gross loan exposure of
stage 3 loans.
Gross yield: Reported interest income divided by average interest-earning
assets.
Income return on risk weighted assets (IRoRWA): Annualised underlying income
as a percentage of average RWA.
Jaws: The difference between the rates of change in revenue and operating
expenses. Positive jaws occurs when the percentage change in revenue is higher
than, or less negative than, the corresponding rate for operating expenses.
Loan-loss rate: Credit impairment profit and loss on loans and advances to
banks and customers over gross average loans and advances to banks and
customers excluding FVTPL loans.
Net charge-off ratio: The ratio of net credit impairment charge or release to
average outstanding net loans and advances.
Net Interest Margin (NIM): Reported net interest income adjusted for trading
book funding cost, reclassification of accounting asymmetry on account of
Treasury currency management activities, cash collateral and prime services on
interest-earning assets, divided by average interest-earning assets.
Net tangible asset value per share: Ratio of net tangible assets (total
tangible assets less total liabilities) to the number of ordinary shares
outstanding at the end of a reporting period.
Net yield: Gross yield on average assets less rate paid on average
liabilities.
Non NII: Reported non NII is a sum of net fees and commission, net trading
income and other operating income.
Rate paid: Reported interest expense adjusted for interest expense incurred on
amortised cost liabilities used to fund financial instruments held at fair
value through profit or loss, divided by average interest-bearing liabilities.
Return on Ordinary Shareholders' Tangible Equity (RoTE): The ratio of the
current year's profit available for distribution to ordinary shareholders to
the average tangible equity, being ordinary shareholders' equity less the
average intangible assets for the reporting period. Where a target RoTE is
stated, this is based on profit and equity expectations for future periods.
TSR or Total Shareholder Return: The total return of the Group's equity (share
price growth and dividends) to investors.
Underlying net interest income: Reported net interest income normalised to an
underlying basis adjusted for trading book funding cost, reclassification of
accounting asymmetry on account of Treasury currency management activities,
cash collateral and prime services.
- page 27 -
Underlying/normalised: A performance measure is described as
underlying/normalised if the reported result has been adjusted for
restructuring and other items representing profits or losses of a capital
nature; DVA; amounts consequent to investment transactions driven by strategic
intent, excluding amounts consequent to Ventures transactions, as these are
considered part of the Group's ordinary course of business; and 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 performance period-by-period. Restructuring includes impacts to
profit or loss from businesses that have been disclosed as no longer part of
the Group's ongoing business, redundancy costs, costs of closure or relocation
of business locations, impairments of assets and other costs which are not
related to the Group's ongoing business. Restructuring in this context is not
the same as a restructuring provision as defined in IAS 37. A reconciliation
between underlying/normalised and reported performance is contained in Note 2
to the financial statements. The following balances and measures are presented
on an underlying basis when described as such: 1. Operating income, 2.
Operating expenses, 3. Profit before tax and 4. Earnings per share (basic and
diluted) 5. CIR 6. Jaws and 7. RoTE.
Underlying non NII: Reported non NII normalised to an underlying basis
adjusted for trading book funding cost and reclassification of accounting
asymmetry on account of Treasury currency management activities.
Underlying RoTE: The ratio of the current year's underlying profit
attributable to ordinary shareholders plus fair value on OCI equity movement
relating to Ventures segment to the weighted average tangible equity, being
ordinary shareholders' equity less the intangible assets for the reporting
period.
- page 28 -
Group Chief Risk Officer's review
"Managing our risks proactively amid a complex geopolitical and macroeconomic
environment"
Managing Risk
The global economy in H1 2025 was marked by heightened trade tensions
following the announcement and subsequent pause of new US tariffs, and
increased geopolitical risks, particularly in Russia, Ukraine and the Middle
East. Constant fluctuations in policy changes and escalating conflicts have
led to increased economic uncertainty, risking fragmentation of interest rates
across developed economies, commodities price volatility and elevating
refinancing risks across emerging markets, among others.
Amid an unpredictable external environment, we have stayed focused on managing
risks proactively and been forward-looking in identifying emerging risks.
Ahead of the US tariff announcements in 2025, we conducted assessments of
trade linkages and identified countries that were most vulnerable to rising
tariffs. Beyond the direct impact of the tariffs, we continue to closely
monitor second-order impacts and regularly assess country risks through our
Country Risk Early Warning System (CREWS). Through this process, markets
considered high risk were subject to enhanced monitoring with risk strategies
in place. We remain vigilant in managing risks arising from the escalation of
conflicts and broader impact. Assessing the impact of potential downside
scenarios is key to our risk management as we continued to build on our stress
testing capability by increasing the number of Management Stress Tests we
perform and scanning for topical and emerging risks.
Corporate & Investment Banking (CIB)
Our CIB credit portfolio remained resilient amid fluid market conditions, with
overall good asset quality as evidenced by our largely investment-grade
corporate portfolio (30 June 2025: 75 per cent; 31 December 2024: 74 per
cent). In consideration of the macroeconomic challenges, we have been
pre-emptive in assessing potential impacts of a possible trade war escalation
by conducting extensive stress tests and portfolio reviews since H2 2024
across vulnerable countries, sectors and clients. While the risk of
re-escalation in global tariffs has somewhat moderated, we regularly update
our assessments, and based on latest developments, take timely risk mitigating
actions as appropriate. Outside tariffs, we remain vigilant in monitoring
geopolitical risks across geographies including the Middle East and the
resultant impact it could have on certain commodities prices.
Our CIB Traded Risk increased during H1 2025, as evidenced by the higher Value
at Risk (30 June 2025: Trading total $23.0 million; non-trading total $62.3
million; 31 December 2024: Trading total $20.8 million, non-trading total
$38.8 million). The higher non-trading VaR was driven by an increase in the
interest rate risk of the Treasury portfolio, larger United States agency
bonds inventory in the CIB non-trading portfolio and the implementation of an
enhanced VaR model more responsive to upturns in market volatility. While
elevated, the increased risk remained within Risk Appetite during the period.
Stress tests were used extensively to detect any emerging issue in terms of
Market Risk or Counterparty Credit Risk, with mitigating actions taken where
required. There were no margin call issues with our collateralised
counterparties, including hedge funds. Concentration risk is monitored tightly
and contained by limits. We remain vigilant and are continuously enhancing our
modelling and stress testing capabilities in anticipation of further market
volatility in H2 2025.
Wealth & Retail Banking (WRB)
The WRB credit portfolio continued to demonstrate resilience amid the economic
uncertainties in several key markets and geopolitical challenges. As a result
of credit portfolio actions taken, we are seeing signs of credit performance
improvement in some larger markets, but overall net cost of risk remains
elevated. Portfolio management actions have continued to be dynamically
adjusted in the last 18 months in response to the challenging and rapidly
changing macroeconomic and operating conditions, with scenario testing being
utilised to manage the uncertainties. We remain focused on taking proactive
actions across origination, portfolio management and collections to manage the
risks and the impact of global trade disruptions and associated market
volatility on the WRB portfolios, as well as the successful execution of the
pivot to Affluent across WRB markets.
Treasury Risk
Liquidity remained resilient across the Group and major legal entities. The
liquidity coverage ratio (LCR) is 146 per cent (31 December 2024: 138 per
cent) with a surplus to both Risk Appetite and regulatory requirements. Amid
the uncertain environment, we are focused on assessing and proactively
managing our capital, Interest Rate Risk in the Banking Book (IRRBB) and
liquidity risks, including assessing and increasing contingent liquidity as
appropriate, and enhancing our framework for managing Treasury Risks in
volatile market scenarios. The Group remains well capitalised with CET1 ratio
at 14.3 per cent (31 December 2024: 14.2 per cent), while the leverage ratio
was 4.7 per cent (31 December 2024: 4.8 per cent).
- page 29 -
Our risk management approach
Our Enterprise Risk Management Framework (ERMF) sets out the principles and
minimum requirements for risk management and governance across the Group. The
ERMF is complemented by frameworks, policies and standards which are mainly
aligned to the Principal Risk Types (PRTs) and is embedded across the Group,
including its branches and subsidiaries1.
The ERMF enables the Group to manage enterprise-wide risks, with the objective
of maximising risk-adjusted returns while remaining within our Risk Appetite
(RA).
1 The Group's ERMF and system of internal control applies only to wholly
controlled subsidiaries of the Group, and not to Associates, Joint Ventures or
Structured Entities of the Group.
Principal Risk Types and Risk Appetite
PRTs are those risks that are inherent in our strategy and business model and
have been formally defined in the Group's ERMF. These risks are managed
through distinct Risk Type Frameworks which are approved by the Group Chief
Risk Officer.
The table below details the Group's current PRTs, their definitions and RA
statements.
Principal Risk Types Definition Risk Appetite statement
Credit Risk Potential for loss due to failure of a counterparty to meet its agreed The Group manages its credit exposures following the principle of
obligations to pay the Group. diversification across products, geographies, client segments and industry
sectors.
Traded Risk Potential for market or counterparty credit risk losses resulting from The Group should control its financial markets activities to ensure that
activities undertaken by the Group in fair valued financial market market and counterparty credit risk losses do not cause material damage to the
instruments. Group's franchise.
Treasury Risk Potential for insufficient capital, liquidity or funding to support our The Group should maintain sufficient capital, liquidity and funding to support
operations, the risk of reductions in earnings or value from movements in its operations, and an interest rate profile ensuring that the reductions in
interest rates impacting banking book items and the potential for losses from earnings or value from movements in interest rates impacting banking book
a shortfall in the Group's pension plans. items does not cause material damage to the Group's franchise. In addition,
the Group should ensure its pension plans are adequately funded.
Operational and Potential for loss resulting from inadequate or failed internal processes, The Group aims to control operational and technology risks to ensure that
Technology Risk technology events, human error, or from the impact of external events operational losses (financial or reputational), including those related to the
(including legal risks). conduct of business matters, do not cause material damage to the Group's
franchise.
Information and Cyber Security Risk Risk to the Group's assets, operations, and individuals due to the potential The Group aims to mitigate and control ICS risks to ensure that incidents do
for unauthorised access, use, disclosure, disruption, modification, or not cause the Bank material harm, business disruption, financial loss or
destruction of information assets and/or information systems. reputational damage - recognising that while incidents are unwanted, they
cannot be entirely avoided.
Financial Crime Risk2 Potential for legal or regulatory penalties, material financial loss or The Group has no appetite for breaches of laws and regulations related to
reputational damage resulting from the failure to comply with applicable laws Financial Crime, recognising that while incidents are unwanted, they cannot be
and regulations relating to international sanctions, anti-money laundering and entirely avoided.
anti-bribery and corruption, and fraud.
Compliance Risk Potential for penalties or loss to the Group or for an adverse impact to our The Group has no appetite for breaches of laws and regulations related to
clients or stakeholders or to the integrity of the markets we operate in regulatory non-compliance; recognising that while incidents are unwanted, they
through a failure on our part to comply with laws, or regulations. cannot be entirely avoided.
Environmental, Social Potential or actual adverse impact on the environment and/or society, the The Group aims to measure and manage financial and non-financial risks arising
and Governance and Reputational (ESGR) Risk Group's financial performance, operations, or the Group's name, brand or from climate change, reduce emissions in line with our net zero strategy and
standing, arising from environmental, social or governance factors, or as a protect the Group from material reputational damage by upholding responsible
result of the Group's actual or perceived actions or inactions. conduct and striving to do no significant environmental and social harm.
Model Risk Potential loss that may occur because of decisions or the risk of The Group has no appetite for material adverse implications arising from
mis-estimation that could be principally based on the output of models, due to misuse of models or errors in the development or implementation of models,
errors in the development, implementation or use of such models. while accepting some model uncertainty.
2 Fraud forms part of the Financial Crime RA statement but, in line with
market practice, does not apply a zero-tolerance approach
- page 30 -
Topical and Emerging Risks (TERs)
Topical Risks refer to themes that may have emerged but are still evolving
rapidly and unpredictably. Emerging Risks refer to unpredictable and
uncontrollable outcomes from certain events which may have the potential to
adversely impact our business.
As part of our risk identification process, we have updated the Group's TERs
from those disclosed in the 2024 Annual Report. Below is a summary of the
TERs, and the actions we are taking to mitigate them based on our current
knowledge and assumptions. The TER list is not exhaustive and there may be
additional risks which could have an adverse effect on the Group. There are
some horizon risks that, although not highly likely at present, could become
future threats and thus we are monitoring them. Our mitigation approach for
these risks may not eliminate them but demonstrates the Group's awareness and
attempt to mitigate or manage their impact.
Macroeconomic and geopolitical considerations
There is a complex interconnectedness between risks due to the direct
influence of geopolitics on macroeconomics, as well as the global or
concentrated nature of key supply chains. A more complex and less integrated
global landscape could challenge cross-border business models, but also
provide new business opportunities.
The Group is exposed to these risks directly through investments,
infrastructure and employees, and also indirectly through its clients. While
the primary impact is financial, there may be other ramifications such as
reputational, compliance or operational considerations.
Expanding array of global tensions and transition of the international order
The global geopolitical landscape has undergone a transition, with a shift
from a rules-based international order to a system driven by relative power
dynamics. More fluid political and economic alliances are evolving as a
result, with the landscape further complicated by complex conflicts in Ukraine
and the Middle East.
Fragmentation is also hampering collaboration on key worldwide challenges. The
erosion of the international rules-based system and the organisations that
underpin it could undermine efforts to reach globally agreed solutions to
structural issues.
There were many changes of governments in 2024, with a growing worldwide trend
for short-term populist measures outweighing longer-term political
necessities, such as addressing climate change or managing demographic
transitions.
The Group may be affected directly or impacted by the second-order effects of
countries engaged in conflicts. Escalation of tensions in the Middle East
following the strikes on Iran could affect markets in the Group's footprint.
The positioning of 'middle powers' is complex and evolving, with a rise in
'mini-lateral' groups of countries that are ideologically or geographically
aligned. The negotiating power of these alliances can be strengthened where
they are located in strategic areas or export key resources.
While focus has been on East-West dynamics in recent years, US tariffs have
caused fractures with traditional allies such as Canada and Europe, leaving
many long-standing bilateral relationships in a state of flux globally.
The malicious use of Artificial Intelligence (AI) enabled disinformation could
further undermine trust in the political process. Combined with increasingly
polarised societies and persistent inequality, this may lead to heightened
societal tensions and the threat of terrorism. Cyber warfare may also disrupt
infrastructure in rival countries.
Tariffs and trade tensions
Uncertainty caused by the tariffs saw a risk-off sentiment across the globe,
with equities falling and safe havens such as gold seeing historic rises.
Rapid market swings caused huge price moves across a range of asset classes.
Macroeconomic unpredictability has led to companies reassessing their business
models and supply chains and delaying investment plans. Tariffs are likely to
hit small businesses more severely, as they have less resources and financial
buffers to withstand prolonged volatility.
In an extreme case, the rest of the world may vastly reduce trade with the US.
This could disrupt the macroeconomic status quo, leading to US dollar
weakening and challenging its status as the global reserve currency, or risk
premia on traditionally risk-free assets such as US Treasuries.
- page 31 -
Uncertain interest rate trajectory and credit downturn
Although the rate cut cycle has begun across most major central banks, the
short-term trajectory remains uncertain. Tariffs, supply chain disruption and
higher deficits could be inflationary, leading to higher rates. In contrast,
aggressive cuts could further fuel inflation. 'Higher-for-longer' rates amid
ongoing market disruption would continue to stretch companies and sovereigns
alike. Volatile interest rates could also impact the Group's Net Interest
Income outlook.
Direct public rebukes of the Federal Reserve threaten to impact its
independence. The tension between the Federal Reserve's caution and the US
Government's open desire for lower rates, as well as shifting investor
perception on the attractiveness of US assets, has further clouded the outlook
in the world's most influential economy.
Economic challenges in China
The IMF forecasts that China's growth will reduce to 4 per cent this year and
elevated tariffs could mean a further downside for China's GDP. The government
has announced multiple rounds of stimulus measures, with further actions
expected throughout 2025.
Competition with the US and the EU remains intense. To combat this, China has
sought agreements with other nations, and the tariff actions from the US could
drive nations towards China as the main alternative economic superpower.
Continued volatility in Western economics could see companies further
diversify their payments, with China the most obvious beneficiary.
A prolonged slowdown in China would have wider implications across the supply
chain, especially for its trading partners, and for countries which rely on it
for investment.
Sovereign risk
Governments are likely to find it difficult to reduce debt levels due to the
prevailing political backdrop, weak GDP growth, demographic challenges and
pressure to increase national security and defence. This was further evidenced
by Moody's action to downgrade the US's rating due to rising debt levels and
interest costs. This in turn could lead to scrutiny on the levels of US debt
on global balance sheets.
Refinancing costs remain elevated, and interest payments are an increasing
burden on both emerging and developed markets. Although a weaker US dollar may
provide some respite, this is generally offset by increased economic
uncertainty and the significant tariffs directly imposed.
Some countries also face a heightened risk of failing to manage societal
demands and increasing political vulnerability. Food and security challenges
exacerbated by armed conflict and climate change also have the potential to
drive social unrest.
Supply chain issues and key material shortages
Geopolitical volatility, tariffs, shifts towards protectionism, and ongoing
conflicts have complicated the operation of global supply chains. With
increased trade barriers, countries are 'de-risking' by reducing reliance on
rivals or concentrated suppliers and looking to either re-industrialise or
make use of near-shoring and friend-shoring production.
The growing need for minerals and rare earth elements to power future
technologies can be leveraged to achieve economic or political aims by
restricting access. This can bolster the negotiating influence of refiners and
producers such as China, Indonesia and some African markets.
How these risks are mitigated
• We conduct portfolio reviews and stress tests at Group, country and
business level, with regular reviews of vulnerable sectors.
• We explored the implications of a second Trump administration, evaluating
policy direction under different scenarios. We performed targeted portfolio
analyses to identify clients that may be impacted by tariffs.
• We run daily Market Risk stress scenarios to assess the impact of unlikely
but plausible market shocks.
• We run a suite of management scenarios with differing severities to assess
their impact on key risk appetite metrics.
• We have a dedicated Country Risk team that closely monitors sovereign
risk.
• We maintain a diversified portfolio across products and geographies, with
specific risk appetite metrics to monitor concentrations.
• Increased scrutiny is applied when onboarding clients in sensitive
industries and ensuring compliance with sanctions.
• We regularly review our supply chains and third-party arrangements to
improve operational resilience.
- page 32 -
• We actively review and test our crisis management and business continuity
plans.
• We conduct regular threat intelligence monitoring and news scanning, and
reviews of politically exposed persons.
Environmental, social and governance (ESG) considerations
Evolving ESG dynamics
Higher frequencies of extreme weather events are observed each year and the
cost of managing the climate impacts is increasing, with the burden
disproportionately borne by developing markets.
Other environmental risks pose incremental challenges to food, health systems
and energy security. Modern slavery and human rights concerns are increasingly
in focus, with the scope expanding beyond direct operations to extended supply
chains.
There is increasing stakeholder scrutiny on ESG commitments and practices,
including greenwashing. Growing economic pressures and geopolitical tensions
such as tariff wars may also push companies to consider deprioritising their
climate transition, potentially impacting progress towards the Group's net
zero targets.
The ESG regulatory landscape also continues to evolve, with growing
requirements on ESG risk management, stress testing, disclosures, transition
planning, taxonomies, and sustainable finance frameworks across many of the
Group's footprint markets. We are also closely monitoring the changing
attitudes towards ESG, particularly in the US.
Frontier technologies such as quantum computing and AI may also come with
substantial energy demands. These need to be understood, particularly the
impact on companies' ability to deliver against sustainability targets.
How these risks are mitigated/next steps
• Climate Risk considerations are embedded across relevant Principal Risk
Types. We perform client-level Climate Risk assessments and set adequate
mitigants or controls.
• We seek to increase the proportion of our electricity usage that comes
from renewable sources and optimising energy efficiency for our own
operations.
• We embed our values through our Position Statements for sensitive sectors
and a list of prohibited activities. We also maintain ESG and Reputational
Risk standards to identify, assess and manage risks when providing services to
clients.
• Management of greenwashing risks is integrated into our ESG and
Reputational Risk (ESGR) Framework, ESGR policy, Sustainable Finance
frameworks, and relevant product and marketing standards.
• Detailed portfolio reviews and scenario analyses are conducted to assess
the resilience of climate-related physical and transition risks and there are
ongoing initiatives to enhance modelling capabilities.
• We assess our corporate clients and suppliers against various
international human rights principles, as well as through our social
safeguards.
Modern slavery statement: sc.com/modernslavery
Human Rights Position Statement: sc.com/humanrights
New business structures, channels and competition
Competitive disruption
The rapid adoption of AI is a key focus. There has been a large increase in
the use of AI in fraud, scams and spreading misinformation. There are also
potential societal and economic impacts from replacement of jobs across many
sectors. Leveraging the benefits of augmented AI while managing these risks
will be a core part of the Group's business model.
The integration of more sophisticated insights utilising big data and AI could
greatly enhance the services offered to customers. However, it also raises
other considerations such as the ethical use of data and protecting privacy
and security.
The impact of more nascent technologies such as quantum computing needs to be
proactively managed to avoid falling behind the technological frontier. This
may lead to sunk costs into projects that are ultimately not required, or do
not become part of daily operations.
Traditional banking also faces competitive challenges from a range of fintechs
and private credit players. These provide customers with alternative channels
for payments and borrowing. Increased adoption of stablecoins and digital
currencies could also create alternative deposit channels.
- page 33 -
Cyber, data and operational resilience
The Group's digital footprint is expanding. This increases inherent cyber risk
as more services and products are digitised, outsourced and made more
accessible. It also expands opportunities for cybercriminals to gain entry or
access to corporate assets, including infrastructure such as cloud and
third-party enabled services.
The risks of cyber incidents and sophisticated scams are amplified by highly
organised cybercriminals. Emerging technologies such as AI enable novel or
augmented attack types, and cross-border tensions further drive the arms race
to develop more innovative cyber capabilities, both offensive and defensive.
In the longer term, advances in quantum computing could threaten encryption,
one of the core aspects of security, with a complex global transition to
enhance data architecture.
The rapid adoption of new technologies also compounds the risk of
obsolescence. While an option is to outsource functionality such as cloud
storage and computing, this requires enhanced due diligence to ensure secure
adoption. There are also concentration risks given the relatively small number
of firms that dominate the sector.
Reliance on third parties for critical processes is an increasing regulatory
focus, and growing dependency can introduce significant risks if these third
parties fail to deliver or face operational issues. Managing critical
relationships requires robust oversight, continuous monitoring and effective
risk management practices.
The adoption of new technologies, products or business models requires clear
operating models and risk frameworks. It is essential to upskill our people to
develop in-house capabilities to manage associated risks. People, process and
technology agendas must be viewed holistically to effectively implement new
infrastructure.
How these risks are mitigated/next steps
• We continuously monitor and evaluate emerging technology trends, business
models and opportunities, with key themes tabled at Board Strategy meetings.
• We have enhanced governance for evolving areas, such as the Digital Asset
Risk Committee and the Responsible AI Council.
• We manage data and information security risks through our Compliance and
Information and Cyber Security (ICS) Risk Type Frameworks. We maintain a
global Group Data Conduct Policy.
• The Group is investing to enhance its resilience capabilities, focusing on
data centres, single technology asset upgrades, and remediation and
re-platforming of legacy infrastructure.
• We ensure that software is built secure by default, and is validated
through robust testing and assurance activities before they go live.
• The Group has implemented a 'defence-in-depth' ICS control environment
strategy to protect, detect and respond to known and emerging ICS threats.
• New risks are identified through the New Initiatives Risk Assessment and
Third-Party Risk Management Policy and Standards.
• We have initiated a post quantum cryptography programme to manage the
bank-wide transition to post-quantum encryption standards.
• We periodically test the effectiveness of our crisis management and
continuity strategies through a series of severe but plausible disruption
scenarios.
Regulatory considerations
Regulatory evolution and fragmentation
Aside from changes in prudential, financial markets, climate and data
regulations, we are seeing a rise in consultations relating to digital assets
and greater regulatory interest in the use of AI, particularly around its
ethical application in decision-making. However some AI use cases are seeing
regulatory bodies lagging the development of technology, with key questions
around safety and ethics, systems interoperability, and productivity
challenges.
The US administration has signalled an intent to relax regulation, and its
adoption of Basel 3.1 rules may differ from proposed policies to align with
international standards. The UK also delayed its implementation of Basel 3.1
to 2027. However, some Asian markets have gone live as of 2025. Other areas of
divergence include ESG regulation, and extraterritorial and localisation
requirements.
- page 34 -
Whilst some deregulation can be beneficial, an uncoordinated global regime can
create systemic risks. This makes it challenging to manage cross-border
activities, with additional complexity and cost.
How these risks are mitigated
• We actively monitor regulatory developments and respond to consultations
either bilaterally with regulators and external legal advisors or through
well-established industry bodies.
• We track evolving country-specific requirements, and actively collaborate
with regulators to support important initiatives.
• We are leveraging new technology to identify and map new regulations.
Demographic considerations
Skills and the competition for talent
Evolving client expectations and the rapid development of technologies such as
AI are transforming the workplace, accelerating changes to how people work,
connect and collaborate. The future workforce will continue to augment, with a
focus on ensuring that human and technical skills intertwine efficiently,
keeping pace with ongoing changes and client needs.
Workforce expectations also continue to evolve, with health, wellbeing and
purpose becoming top focuses for talent attraction. Maintaining an Employee
Value Proposition (EVP) that caters for multiple generations with differing
priorities is a key challenge to build a high performing, integrated employee
base.
Flexible working is an increasingly important factor for colleagues and an
overall positive factor in workforce experience. However, there are risks
around potential lack of development opportunities from face-to-face
interaction, especially for more junior staff. As such the role of people
leaders will continue to evolve to enable the right balance for both
individuals and teams.
Demographic and migration trends
Divergent demographic trends across developed and emerging markets create
contrasting challenges. Developed markets' budgets will be increasingly
strained by ageing populations. Conversely, emerging markets are experiencing
fast-growing, younger workforces. Population growth will put pressure on key
resources and government budgets to fully capitalise on the 'demographic
dividend'.
Population displacement is rising, which may increase the fragility of
societal structures in vulnerable centres. Both forced and economic migration
are increasingly influential in the political discourse. Large scale movement
could cause social unrest, as well as propagate disease transmission and
accelerate spread of future pandemics.
Societal unrest continues to increase, with protests on topics ranging from
pro-democracy, nationalism, climate change and the cost of living. The threat
of terrorist activity has also increased over the past 12 months.
Net population growth for the 21st century will be in less-developed
countries. Anticipating and proactively planning for these demographic shifts
will be essential in maintaining an efficient global business model.
How these risks are mitigated/next steps
• Colleagues are empowered to build capabilities. We have an internal Talent
Marketplace which enables colleagues to sign up for projects to access diverse
experiences and career opportunities.
• We place an emphasis on skills and identifying talent to accelerate, and
how to deploy them in areas with the highest impact for our clients and the
business.
• We emphasise frequent two-way feedback through performance and development
conversations to embed a culture of continuous learning and development.
• We provide support and resources to help balance productivity,
collaboration and wellbeing, with more than 60 per cent of our staff working
flexibly.
• Our Human Rights Position Statement outlines our commitment to maintain a
safe, supportive, diverse and inclusive workplace, and to support social and
economic development in the communities in which we operate.
Sadia Ricke
Group Chief Risk Officer
31 July 2025
- page 35 -
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 36 -
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 37 -
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 38 -
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 39 -
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR GGGDRDSXDGUBRecent news on Standard Chartered
See all newsREG - Standard Chrtrd PLC - Total Voting Rights
AnnouncementREG - Standard Chrtrd PLC - Publication of Supplementary Prospectus
AnnouncementREG - Standard Chrtrd PLC - Share Buy-Back
AnnouncementREG - Standard Chrtrd PLC - SCPLC Half Year Results 2025
AnnouncementREG - Standard Chrtrd PLC - Transaction in Own Shares
Announcement