REG - Standard Chrtrd PLC - SCPLC Final Results 2025
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RNS Number : 1097U Standard Chartered PLC 24 February 2026
Standard Chartered PLC
4Q'25 and FY'25 Results
24 February 2026
Registered in England under company No. 966425
Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK
Page 01
Table of contents
Performance highlights 03
Statement of results 05
Group Chair's statement 06
Group Chief Executive's statement 08
Group Chief Financial Officer's review 11
Financial review 14
Supplementary financial information 20
Underlying versus reported results reconciliations 32
Group Chief Risk Officer's review 36
Risk review 44
Capital review 48
Financial statements 53
Other supplementary financial information 58
Shareholder information 64
Unless another currency is specified, the word 'dollar' or symbol '$' in this
document means US dollar and the word 'cent' or symbol 'c' means one-hundredth
of one US dollar.
Unless the context requires, within the document, 'China' refers to the
People's Republic of China and, for the purposes of this document only,
excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special
Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to
the Republic of Korea. Asia includes Australia, Bangladesh, Brunei, Cambodia,
India, Indonesia, Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri
Lanka, Thailand, Vietnam, China, Hong Kong, Japan, Korea, Macau and Taiwan;
Africa includes Botswana, Côte d'Ivoire, Egypt, Ghana, Kenya, Mauritius,
Nigeria, South Africa, Tanzania, Uganda and Zambia. The Middle East includes
Bahrain, Iraq, Oman, Pakistan, Qatar and Saudi Arabia and the UAE. Europe
includes Belgium, Falkland Islands, France, Germany, Jersey, Luxembourg,
Poland, Sweden, Türkiye and the UK. The Americas includes Argentina, Brazil,
Colombia and the US.
Within the tables in this report, blank spaces indicate that the number is not
disclosed, dashes indicate that the number is zero and 'nm' stands for not
meaningful. Standard Chartered PLC is incorporated in England and Wales with
limited liability, and is headquartered in London.
The Group's head office provides guidance on governance and regulatory
standards. Standard Chartered PLC stock codes are: HKSE 02888 and LSE STAN.LN.
Page 02
Standard Chartered PLC - full-year and fourth quarter 2025 results
All figures are presented on an underlying basis and comparisons are made to
2024 on a constant currency basis, unless otherwise stated. A reconciliation
of restructuring and other items excluded from underlying results is set out
on pages 32 - 35.
Bill Winters, Group Chief Executive, said:
"2025 was another year of strong momentum. We achieved an underlying return on
tangible equity of 14.7%, exceeding our three-year plan a full year early. We
have made a good start to the year and continue to benefit from a supportive
business environment. We are seeing robust growth in our larger markets, and
structural shifts in global trade and investment play to our distinctive
strengths serving our clients' cross-border and affluent banking needs. We
have increased our full year dividend per share by 65% and are announcing a
new share buyback of $1.5 billion."
Selected information on FY'25 financial performance with comparisons to FY'24 unless otherwise stated
• Operating income of $20.9bn, up 6%; up 8% excluding notable items(1)
- Net interest income (NII) up 1% to $11.2bn
- Non NII up 13% to $9.7bn, largely driven by Wealth Solutions, Global
Banking and Global Markets
- Wealth Solutions up 24% with double-digit growth in both Investment
Products and Bancassurance
- Global Banking up 15%, driven by higher origination and distribution
volumes, and increased capital markets activity
- Global Markets up 12%, mostly driven by flow income
• Operating expenses up 4% to $12.3bn, driven by targeted investments for
business growth partly offset by efficiency saves
• Credit impairment charge of $676m; Wealth & Retail Banking (WRB)
charge of $595m down $28m, mainly from unsecured portfolio optimisation.
Corporate & Investment Banking (CIB) charge of $4m was up $124m due to
non-repeat of prior year releases.
• Restructuring and other charges of $937m include $531m related to the
Fit for Growth programme
• Underlying profit before tax of $7.9bn, up 18%; reported profit before
tax of $7.0bn, up 18%
• Return on Tangible Equity (RoTE) of 14.7%, up 300bps; Reported RoTE of
11.9%
• Balance sheet remains strong, liquid and well diversified with
underlying loans and advances to customers up 5% and underlying customer
deposits up 12%
• Risk-weighted assets (RWA) up $11bn to $258bn; Credit risk RWA up
$2.8bn, Market risk RWA up $2.4bn, and Operational RWA up $5.7bn as the annual
change is now recognised in Q4 instead of Q1 the subsequent year, resulting in
two operational risk RWA increases in 2025
• The Group remains strongly capitalised with a Common Equity Tier 1
(CET1) ratio 14.1% (31.12.24: 14.2%)
- $1.5bn share buyback starting imminently is expected to reduce CET1
ratio by approximately 58bps
- Proposed final dividend of $1,092m or 49 cents per share will result in
a full-year dividend of $1.38bn or 61 cents per share, up 65%
• Underlying earnings per share (EPS) increased 37% or 61.6 cents to 229.7
cents; Reported EPS increased 38% or 54.1 cents to 195.4 cents
• Tangible net asset value per share of $17.30 up 12% or 189 cents
Selected information on Q4'25 financial performance with comparisons to Q4'24 unless otherwise stated
• Operating income of $4.8bn broadly flat; up 3% excluding notable items
and the reclassification(2)
- NII down 1% at ccy to $3.0bn, up 3% excluding the reclassification
- Non NII up 1% to $1.9bn, up 2% excluding notable items; growth in Wealth
Solutions and Global Banking partly offset by lower episodic income in Global
Markets
• Operating expenses of $3.4bn up 4%, up 7% excluding the reclassification
• Credit impairment charge of $145m with $156m from WRB and a $46m net
release in CIB
• Underlying profit before tax of $1.2bn, up 19%.
1 Notable items relating to Ghana hyperinflation and
revaluation of FX positions in Egypt
2 Reclassification of deposit insurance to expenses
Page 03
Standard Chartered PLC - full-year and fourth quarter 2025 results continued
Outlook and guidance
Building on the performance delivered in the year, the Group continues to
expect client activity to be shaped by structural shifts in the global
economy. These trends, which include a more multi-aligned world, increasing
digitisation of money, and rising wealth participation in markets, are
expected to persist.
We will host a capital markets event in May of this year where we will
describe how these trends position the Group for the next phase of growth, as
well as detailing the expected financial outcomes.
Our 2026 guidance is as follows:
• Reported operating income growth year-on-year to be around the bottom
end of 5-7 per cent range at constant currency
- Within which, net interest income(3) expected to be broadly flat
year-on-year at constant currency
• Reported cost to be broadly flat in constant currency including the
final year of Fit for Growth charges
• Statutory RoTE to be greater than 12 per cent
3 Net interest income is adjusted for trading book funding
cost, treasury currency management activities, and financial guarantee fees on
interest earning assets
Page 04
Statement of results
2025 2024 Change(1)
$million $million %
Underlying performance
Operating income 20,894 19,696 6
Operating expenses (12,347) (11,790) (5)
Credit impairment (676) (557) (21)
Other impairment (42) (588) 93
Profit from associates and joint ventures 71 50 42
Profit before taxation 7,900 6,811 16
Profit attributable to ordinary shareholders² 5,360 4,276 25
Return on ordinary shareholders' tangible equity (%) 14.7 11.7 300bps
Cost-to-income ratio (%) 59.1 59.9 80bps
Reported performance(7)
Operating income 20,942 19,543 7
Operating expenses (13,304) (12,502) (6)
Credit impairment (672) (547) (23)
Goodwill & other impairment (65) (588) 89
Profit from associates and joint ventures 62 108 (43)
Profit before taxation 6,963 6,014 16
Taxation (1,866) (1,972) 5
Profit for the period 5,097 4,042 26
Profit attributable to parent company shareholders 5,085 4,050 26
Profit attributable to ordinary shareholders(2) 4,558 3,593 27
Return on ordinary shareholders' tangible equity (%) 11.9 9.7 220bps
Cost-to-income ratio (%) 63.5 64.0 50bps
Net interest margin (%)(6,9) 2.03 2.06 (3)bps
Balance sheet and capital
Total assets 919,955 849,688 8
Total equity 54,586 51,284 6
Average tangible equity attributable to ordinary shareholders(2) 38,242 36,876 4
Loans and advances to customers 286,788 281,032 2
Customer accounts 530,161 464,489 14
Risk-weighted assets 258,031 247,065 4
Total capital 53,227 53,091 -
Total capital ratio (%) 20.6 21.5 (86)bps
Common Equity Tier 1 36,440 35,190 4
Common Equity Tier 1 ratio (%) 14.1 14.2 (12)bps
Advances-to-deposits ratio (%)(3) 51.4 53.3 (190)bps
Liquidity coverage ratio (%) 155.4 138.2 1720bps
UK leverage ratio (%) 4.7 4.8 (11)bps
Cents Cents Change¹
Information per ordinary share(8)
Earnings per share(4) - underlying 229.7 168.1 61.6
- reported 195.4 141.3 54.1
Net asset value per share(5) 2,007 1,781 226
Tangible net asset value per share(5) 1,730 1,541 189
Number of ordinary shares at period end (millions) 2,247 2,408 (7)
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.
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 the annual 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 05
Group Chair's statement
2025 marked my first year as Chair of Standard Chartered, and I am acutely
aware of the responsibility this entails. As I stepped into this role, I did
so with a profound respect for my predecessor, José Viñals, who during his
tenure, provided steady, principled leadership through a period of
exceptional change for the global banking system and the Group.
Our strategy has never been clearer. We combine our differentiated
cross-border capabilities and leading wealth management expertise to connect
clients to growth opportunities across Asia, Africa and the Middle East.
Across the business we are aligned to our strategic direction, having
simplified our structure to ensure we meet the needs of our globally-minded
clients, whether they are corporates, financial institutions, individuals or
families. Our capital position and liquidity are robust, our risk discipline
is well-embedded, and we have proven our renewed ability to generate
sustainable returns, as evidenced by 2025 being the strongest year of
financial performance since the financial crisis.
Those achievements form a solid foundation on which we now build. But as we
move forward, we do so in the knowledge that the world is transforming. We
must ensure our approach continues to reflect our environment, by evaluating
and balancing the risks and opportunities presented by an ever‑changing
landscape.
The friction and fracturing of our operating context
Our ability to remain agile and proactive is of paramount importance. This is
what our clients seek when partnering with us, and it is what our people seek
in working for Standard Chartered. We helped our clients navigate the shifting
geopolitical and geoeconomic sands of 2025 to deliver a robust performance.
And, while worldwide growth and business pragmatism have thus far prevailed,
we remain acutely aware that ongoing disruption is altering both clients'
needs and our consideration of risk.
Power continues to be projected less through formal institutions and
established norms and more through economic leverage, technological capability
and control of strategic resources. As such, the ability to sustain growth is
increasingly determined by access - to capital, to data, to energy, to supply
chains, and to reliable networks. While many factors are reshaping
the global landscape, we must cut through the noise and identify those trends
that are most relevant to our clients, markets and communities, and that play
to our distinctive competitive advantages. Bill explains some of these trends
in his review; I will highlight the following:
• First is the promise of technology, much of which is materialising in
the form of enhanced productivity. Technological advancement has radically
changed the industrial landscape and with it the business models, investment
decisions and competitive strengths of both incumbents and new entrants alike.
Many of the largest corporates today are themselves technology companies
or otherwise heavily reliant on it as an enabler.
• Second, a broad digital transformation of finance, and the banking
system in particular, is already underway. Adoption is accelerating,
integration is deepening, and the boundary between financial services and
technology continues to blur. Digital assets, tokenisation and the future of
money are no longer theoretical. They are becoming embedded in real-world
use cases - in trade, in payments and in capital markets - demanding both
innovation and rigorous risk management from global banks.
• Third, and related to the first two factors, is the contest for
strategic resources that underpin the adoption of AI and data-intensive
technologies. This is driving unprecedented demand for data centres, reliable
energy and critical minerals, further reshaping geopolitics, supply chains and
investment priorities, and reinforcing the strategic value of resilience,
access and partnership. It offers significant advantage to those markets that
can responsibly capitalise on their natural resources. Such an endowment, if
well-stewarded, can present significant opportunity for economic and social
development, so we must endeavour to play a role that facilitates
such outcomes.
Against this backdrop, global governance is in focus. Financial regulators are
shifting from policy consultation and design towards implementation and
enforcement - while still recognising their role in stimulating further
economic growth. As regulatory convergence and coordination is sought, even
if challenging to achieve, as a Group we must retain the ability to act
decisively, particularly if we wish to capitalise on our leadership position
in digital assets and in our advocacy for a model of banking that is more
transparent, secure and immediate.
In engaging in these trends, our conduct at Standard Chartered must be
underpinned by trust, discipline and accountability, enabling clear decisions
in complex markets. Good conduct provides certainty to clients, supports
prudent risk-taking, and strengthens confidence across our markets, directly
contributing to sustainable growth and long-term success globally.
Page 06
Group Chair's statement continued
Maintaining strategic discipline and focus
The Group Management Team, under Bill's leadership, continues to show that our
distinctive strategy is effective, agile and resilient to the external
environment. And the strong financial performance outlined in the financial
review later in this report reflects our sharper focus and our improved
discipline in execution. The role of the Board is to maintain this momentum
and to translate our clear strategic intent into sustained outcomes.
The Board's confidence in management is grounded in consistent delivery, sound
judgement and their understanding of the risks inherent in operating across
our markets. The Board remains rigorous in its oversight, challenging
assumptions and decisions and ensuring that performance is sustainable and
within our risk appetite. This balance - between trust and scrutiny - is
essential to good governance, particularly in a volatile global environment.
I believe resilience matters as much as ambition. A central priority for the
Board will therefore remain safeguarding the Group's financial strength, risk
discipline and regulatory standing, ensuring that the extraordinary growth
opportunities we face are pursued with care and that trade-offs are made
transparently.
Relevance - to clients and to society - will also be central to our approach.
Standard Chartered operates in markets that are critical to global growth and
development, and we play an important role in facilitating trade, investment
and financial inclusion. Our commitment to sustainability and responsible
finance is integral to our franchise and long-term value creation. This is not
about pursuing objectives in isolation but about recognising that strong
financial performance and positive social impact are mutually reinforcing when
approached with discipline and integrity.
Such an approach is deeply valued by our clients, and it is often cited as
their reason for both choosing and remaining with us. And, over the last year
in particular, this has been highlighted as an example of true
differentiation from our global peers.
Culture as a strategic asset
In a global institution spanning diverse markets and regulatory regimes,
culture is not an abstract concept; it is a strategic asset. As Chair, I
experienced this firsthand during market visits in 2025 to Malaysia, Hong
Kong, Singapore, the UAE, Mainland China, and the US. While our footprint is
diverse it is our inclusive, collaborative, client-centric culture that sets
us apart from our peers and serves as a valuable anchor of continuity.
Standard Chartered's valued behaviours - do the right thing, never settle and
better together - are central to how we manage risk, serve clients and build
trust. The Board will continue to focus on how these behaviours are reinforced
through leadership, incentives and everyday decision-making, and on ensuring
that the tone from the top is consistently reflected throughout the
organisation.
In fulfilling its responsibilities, the Board must maintain a balance and
diversity of perspectives, skills and experience and remain engaged, informed
and forward-looking in its oversight. During the year, Phil Rivett succeeded
me as Senior Independent Director when I took the role of Chair in May. Phil
also became Chair of the Board Risk Committee in August, with Jackie Hunt
taking over as Chair of the Audit Committee in September.
Pete Burrill was appointed as interim Group Chief Financial Officer in
February, succeeding Diego De Giorgi, who stepped down as Executive Director
and GCFO. The Board thanks Diego for his contribution and wishes him well for
the future.
The Board, as part of its core governance mandate, continues to focus on long
term succession planning for the Board and its Committees and provides
oversight of detailed executive and senior management succession plans,
ensuring the Group remains well positioned to deliver the strategy and
long‑term objectives.
Looking ahead with confidence
As Chair, I intend to act as a steward of this remarkable institution - to
preserve its strengths, to support its continued improvement, and to help
ensure that Standard Chartered remains relevant and trusted for the long term.
Reflecting the Board's confidence in the Group's future prospects, we are
pleased to recommend an increased full-year dividend of 61 cents per share (a
65 per cent increase) and are announcing a further share buyback of $1.5
billion, in addition to the $2.8 billion already announced over the course of
2025.
I would like to thank our clients for their trust, our colleagues for their
extraordinary commitment, and our shareholders for their continued support.
Together, we are building a stronger, more resilient and even more distinctive
Standard Chartered - one that will continue to deliver sustainable performance
and value creation in the years ahead.
Maria Ramos
Group Chair, Standard Chartered PLC
24 February 2026
Page 07
Group Chief Executive's statement
Our performance in recent years has been strong in both absolute terms and
relative to many of our peers. This is reflected in key metrics such as the
value of our client franchise, financial results, and share price.
We have taken advantage of a generally supportive business environment. Shifts
in trade and investment driven by geopolitical changes have worked in our
favour, and growth remains strong in our key markets.
We built additional momentum in 2025, leveraging our distinct competitive
advantages, and intend to capitalise on this in the years to come, having
exceeded our 13 per cent Return on Tangible Equity (RoTE) milestone a year
earlier than guided.
Navigating a period of extraordinary change
We recognise that short-term results alone are not sufficient in banking;
lasting success comes from building long-term resilience - for our clients,
our communities and our own organisation. Sustainable performance comes from
adapting to structural change and turning that into distinctive client value.
We continually assess the structural shifts shaping the future of finance -
some of which I explore below - and refine our strategic response to ensure
that our current momentum translates into long-term value. The strengths that
have fuelled our recent progress will continue to support our success and
adaptability as a financial services company, even as markets evolve.
1. The emergence of a multipolar and multi‑aligned world
The global marketplace is rapidly changing, with growth, capital and
innovation more widely distributed and geopolitical alignment more fluid. As
alliances form around specific trade, security and investment priorities, this
creates new opportunities but also increased complexity in financing, supply
chains, procurement, and logistics for clients operating internationally.
• We help our clients navigate change by using our strong local presence
across Asia, Africa and the Middle East to facilitate secure and compliant
trade, investment and wealth flows.
• Our investment over decades to develop these capabilities gives us a
structural competitive advantage.
• In relation to China, for example - which is neither converging with
other financial systems nor isolating itself, but developing its own capital
markets, payment rails and international linkages - we have built a leading
RMB franchise in many of the markets in which we operate.
2. Digital transformation and evolving client expectations
Money is becoming digital, programmable and increasingly interoperable across
systems.
Distributed ledger technology, tokenisation and new settlement models are
already reshaping payments, securities issuance and settlement, custody and
liquidity management. These changes raise fundamental questions about where
trust and value will ultimately reside. History suggests that financial
innovation does not eliminate clients' need for banks; it changes the form
that banking takes.
• We have built market-leading digital asset capabilities, supporting
clients across trading, custody, settlement and tokenisation in a compliant
and scalable way.
• Our approach is pragmatic, applying distributed ledger technology where
it solves real problems - particularly in cross-border payments, liquidity
management and market infrastructure - rather than pursuing novelty for its
own sake.
• We are modernising our financial plumbing while preserving the trust on
which the system depends, partnering where necessary with those that share
this vision.
Digital-first banking models have reshaped client expectations across all
segments, with clients increasingly prioritising convenience and consistency
over physical interaction. Such models are cheaper to run and easier to scale,
raising industry benchmarks for simplicity and speed.
• Through our uniquely diversified digital banking portfolio across our
markets, we serve distinct customer segments while enhancing offerings in our
core businesses. These experiences have improved customer satisfaction and
productivity across our Wealth & Retail Banking (WRB) business.
• We are equally committed to advancing digital engagement with our
Corporate & Investment Banking (CIB) clients, investing in new platforms,
portals and digital channels, making it easier for them to access services,
manage transactions and engage with us securely and efficiently.
Page 08
Group Chief Executive's statement continued
3. The changing role of banks in serving the real economy
Banks are increasingly acting as service providers, credit originators and
intermediaries, connecting borrowers and investors rather than holding risk
alone.
The post-financial crisis capital rules strengthened the system but made bank
capital more expensive for some activities and changed the critical role of
banks in serving the real economy. The role of non-bank financial institutions
in the provision of credit, pricing and liquidity, significantly outpacing
that of banks. This is not cyclical - it reflects a lasting reallocation of
risk and capital that comes along with banks having governments as lenders of
last resort.
• These trends play directly to our strengths. We provide value to
borrowers and investors through credit origination, warehousing, structuring
and distribution, rather than balance-sheet accumulation alone.
• This is driving greater demand for cross-border hedging and liquidity
solutions, which we capture as valuable 'flow' business in our Global Markets
franchise.
• Our experience across our unique geographic footprint allows us to
originate assets in markets, sectors and corridors where others cannot. That
origination capability sits at the intersection of our corporate,
institutional and wealth businesses, allowing us to connect borrowers,
sponsors and investors in ways that are difficult to replicate.
4. Rising wealth participation is reshaping capital markets
Affluent individuals and corporates are moving beyond deposits into equities,
bonds and funds, while governments and regulators promote infrastructure and
private sector growth. Capital markets across our footprint are transforming
rapidly. Economies that once relied on bank lending and physical assets are
shifting towards more accessible and sophisticated financial systems. This is
not cyclical yield-chasing, but a structural change in how wealth is built,
preserved and transferred.
Technology is an accelerator, enabling broader participation and making
capital markets integral to everyday economic life - unlocking new channels
for savings, generational wealth transfer, investment and risk management.
• As capital markets expand, our ability to provide trusted advice and
innovative solutions becomes a critical differentiator, ensuring we capture
growth while helping clients navigate complexity.
• Wealth continues to grow rapidly across our footprint with the largest
opportunities concentrated in our top markets, and this expansion is becoming
increasingly international. Our affluent business is both large and high
returning, driven by clients' growing need to manage and grow their assets,
and by our position as a top wealth manager in Asia.
We differentiate ourselves by combining deep local market capabilities with
global wealth and capital markets products and services, allowing our clients
to improve returns and funding costs.
5. The transition economy and sustainable finance
The global transition to a lower-carbon economy will significantly affect
capital allocation for decades. But, as we saw in 2025, it will not follow a
straight path. What has changed is the pace and pattern of the transition
itself - more urgent because of accelerating climate impacts, more volatile
because of geopolitical and energy market shocks, and more centred on emerging
markets where capital is scarcest and where credible transition pathways, not
just green solutions, are now essential.
Asia, Africa and the Middle East will account for most of the future global
population growth, energy demand and infrastructure investment. For these
regions, the challenge is not whether to grow, but how to grow - balancing
development, affordability and sustainability.
• We have built one of the leading sustainable finance franchises across
our footprint, precisely because we operate where the transition is most
dynamic and most consequential.
• Our role extends beyond financing renewable energy to supporting
modernised grids, electrified transport, emerging industries, sustainable
trade and adaptation - often in markets where capital is scarce and risk is
misunderstood.
Sustainable finance, in this context, is not an overlay. It is a growth
opportunity and core capability that combines local knowledge, cross-border
capabilities, structuring expertise and long-term client relationships.
Taking the trends above together, they reinforce the logic of our strategy. We
focus on areas where cross-border connectivity matters, where clients value
insight, access and trust. When we describe Standard Chartered as a
super-connector, we mean something specific. We sit at the centre of the
world's most important trade and capital corridors and help clients move
money, manage risk, exchange ideas and deploy capital across borders that
others cannot serve effectively.
Page 09
Group Chief Executive's statement continued
Further progress executing our distinctive strategy
Our robust performance in 2025 reflected the disciplined execution of our
strategy to maximise our areas of strongest competitive advantage:
• Serving our international corporate, institutional and individual
clients with our differentiated cross-border products and services.
• Helping our affluent customers manage their wealth in our markets
across Asia, Africa and the Middle East.
We specialise in providing creative solutions to complex issues for these
sophisticated and internationally oriented clients. As Pete, our interim Group
Chief Financial Officer, will explain in more detail, we made good progress in
both respects in 2025. I would like to take this opportunity to thank Diego
for his valuable contribution during his tenure. Pete brings extensive
sectoral experience and provides valuable continuity to the leadership of our
finance function.
Our distinctive model relies on the quality and resilience of our people. Our
achievements in 2025 are a direct result of their extraordinary commitment
and ingenuity, and I want to thank them for their dedication and for embracing
the challenges and opportunities of a rapidly changing world. I am most proud
that people who are the best at what they do choose to work at Standard
Chartered, bringing their expertise and insights to help us deliver an
increasingly distinctive client proposition. As we strive for excellence and
deepen our role as a super-connector, it is the collective spirit and drive of
our people that will define our next chapter.
Our ongoing focus on serving our clients in the most productive way - through
continuous transformation of our technology, adoption of advanced data skills
(including AI), simplification of our processes, and disciplined expense
management - has served us well. Initiatives such as Fit for Growth and other
ongoing transformation programmes are enabling us to grow income at a faster
rate than expenses while simultaneously enhancing the resilience of our
functions. Our transformation is not limited to operational improvements; it
is also underpinning a profound cultural shift. We are building a bank that is
agile, seamless and truly client-centric, where collaboration and innovation
are not just aspirations but embedded in our daily practice.
Continuity of strategy under our new Chair
This year marks an important transition in our leadership, as Maria Ramos
succeeded José Viñals as Chair. We are grateful to José for his steady
guidance and commitment, which have been instrumental in steering the bank
through a dynamic period. Maria's appointment brings both continuity and
fresh perspective; she is exceptionally well placed to guide us through the
next chapter. For further detail on her vision and priorities, I encourage you
to read Maria's statement, where she sets out her objectives.
Looking ahead: this is (still) our time
This year, we and our clients confronted a global economy and international
system at what felt like an inflection point. Trends previously considered
medium-term have accelerated. Trust and incrementalism - a belief that
tomorrow will be a slightly modified version of today - have given way to
a more substantial re-think. In response, markets and key actors are
re-wiring their financial systems' connectivity, security alliances, trading
routes and infrastructure, and technological dependencies.
Our unique business model with its trusted network of deeply-rooted local
franchises has always thrived in febrile environments, and we expect the
prevailing conditions to continue for the foreseeable future. Our strategy is
designed to enable us to endure change, to support clients as the world
becomes more complex and as their own needs evolve, and to ensure that we
remain relevant, resilient and trusted over the long term. We allocate
capital, talent and technology accordingly - and we are equally deliberate
about what we choose not to do.
We remain committed to sharing our success with our shareholders and will
continue to actively manage our capital position with this objective in mind.
We are therefore announcing a further share buyback programme of $1.5
billion, to commence imminently.
This bank has been transformed in the last ten years, from a traditional,
broad-based commercial bank into a focused, structurally more profitable, and
distinctly positioned international institution. But what got us here will not
get us to where we want to be over the next decade. We will explain more
about our plans at our capital markets event in May of this year, where we
will describe our next phase of growth and the expected financial effects of
our plans.
Bill Winters
Group Chief Executive
24 February 2026
Page 10
Group Chief Financial Officer's review
We delivered strong performance in 2025 reflecting sustained successful
execution of our cross-border and affluent banking strategy which helped our
clients navigate an uncertain external environment. The continued strategic
focus on areas of our distinctive competitive advantage helped us deliver an
underlying return on tangible equity of 14.7 per cent in 2025, surpassing our
13 per cent underlying return on tangible equity target a year earlier than
planned.
Summary of financial performance
All commentary that follows is on an underlying basis and comparisons are made
to the equivalent period in 2024 on a constant currency basis, unless
otherwise stated. 2024 included items totalling $295 million (2025: $1 million
loss) relating to gains on revaluation of FX positions in Egypt and a
hyperinflationary accounting adjustment in Ghana (the notable items).
Our operating income grew by 6 per cent to $20.9 billion or 8 per cent
excluding the notable items, driven by record performance in Wealth Solutions
and Global Markets and strong double-digit growth in Global Banking. Operating
expenses grew by 4 per cent, disciplined cost management enabled us to
generate positive income-to-cost jaws of 2 per cent, or 4 per cent excluding
the impact of notable items. Credit impairment charges were $676 million,
equivalent to an annualised loan-loss rate of 19 basis points, with asset
quality remaining resilient in the face of a volatile global environment.
Underlying profit before tax of $7.9 billion was up 18 per cent, and
underlying earnings per share of 229.7 cents, increased 37 per cent
benefitting from a reduction in share count as well as the increase in
profitability.
The Group remains well capitalised and highly liquid with a strong and
diverse deposit base. The liquidity coverage ratio of 155 per cent reflects
disciplined asset and liability management. The Common Equity Tier 1 (CET1)
ratio of 14.1 per cent is above the Group's target range of 13 per cent to
14 per cent, enabling the Board to announce a further $1.5 billion share
buyback programme to commence imminently.
Net interest income (NII) of $11.2 billion was up 1 per cent, as the benefit
from higher volumes and improved balance sheet mix was partly offset by the
impact of lower interest rates leading to margin compression, albeit
pass-through rates remain robustly managed.
Non NII of $9.7 billion increased 13 per cent or 17 per cent excluding the
notable items. This was driven by record performance in Wealth Solutions from
continued momentum in new clients onboarding and growth in net new money,
strong performance in Global Banking from higher origination and distribution
volumes and robust growth in Global Markets from client flow income. Ventures
realised a $238 million gain from the Solv India transaction.
Operating expenses of $12.3 billion increased 4 per cent. This was largely
driven by continued investments into business growth initiatives, including
strategic hiring of Relationship Managers in Wealth & Retail Banking (WRB)
and coverage bankers in Corporate & Investment Banking (CIB) and higher
performance related compensation reflecting a combination of strong
profitability, share price increases and a change in regulation which enabled
the acceleration of deferred bonuses. This was partly offset by efficiency
saves, primarily linked to the Fit for Growth programme. The cost-to-income
ratio improved by 1 percentage point to 59 per cent.
Credit impairment charge of $676 million represents a loan loss rate of 19
basis points, in line with the prior year. WRB impairment of $595 million was
down $28 million, reflecting portfolio optimisation actions. The $59 million
charge in Ventures was down $14 million year-on-year as delinquency rates
improved in Mox. CIB impairment was a net charge of $4 million, up $124
million from the non-repeat of prior year releases.
Other impairment of $42 million decreased by $546 million year-on-year
primarily due to lower software asset write-offs.
Profit from associates and joint ventures was up 42 per cent to $71 million
mainly reflecting higher profits at China Bohai Bank.
Restructuring, FFG, Debit Valuation Adjustment (DVA) and other items totalled
$937 million (2024: $797 million). Restructuring of $320 million reflects the
impact of actions to simplify technology platforms and business exits (2024:
$285 million). Charges to structurally improve productivity through the Fit
for Growth programme totalled $531 million (2024: $156 million). Movements in
DVA were a negative $31 million (2024: negative $24 million) while Other Items
were a $55 million charge (2024: $332 million).
Taxation was $1.9 billion on reported basis, with an underlying effective tax
rate of 25.3 per cent down 5.3 per cent year-on-year reflecting a favourable
change in the geographic mix of profits, reduced impact of deferred tax not
recognised for UK losses and beneficial adjustments for prior period items.
Underlying RoTE increased by 300 basis points to 14.7 per cent reflecting
increased profits, a lower underlying effective tax rate, and gains on SC
Ventures equity investments recognised through fair value movements in other
comprehensive income. Reported RoTE increased 220 basis points to 11.9 per
cent from an 18 per cent increase in profit before tax and 6 per cent drop-in
tax rate.
Underlying basic earnings per share (EPS) increased 61.6 cents or 37 per cent
to 229.7 cents and reported EPS increased 54.1 cents or 38 per cent to 195.4
cents.
Page 11
Group Chief Financial Officer's review continued
A final ordinary dividend per share of 49 cents has been proposed taking the
full-year dividend to 61 cents per share, a 65 per cent increase year-on-year.
The Group completed a $1.5 billion share buyback programme during the first
half of the year and the $1.3 billion share buyback programme announced on 31
July 2025 was completed on 26 January 2026. The increased dividend, along with
a new share buyback programme of $1.5 billion to be commenced imminently,
takes the total shareholder distributions announced since the full-year 2023
results to $9.1 billion.
Guidance
In 2026, the Group's reporting will move from an underlying to a reported
basis, and our 2026 guidance below is set on this basis:
• Reported operating income growth year-on-year to be around the bottom
end of 5-7 per cent range at constant currency.
- Within which, net interest income(1) expected to be broadly flat
year-on-year at constant currency.
• Reported cost to be broadly flat in constant currency including the
final year of Fit for Growth charges.
• Statutory RoTE to be greater than 12 per cent.
Pete Burrill
Interim Group Chief Financial Officer
24 February 2026
1 Net interest income is adjusted for trading book funding
cost, treasury currency management activities, and financial guarantee fees on
interest earning assets.
Page 12
Group Chief Financial Officer's review continued
Summary of financial performance
Q4'25 Q4'24 Change Constant currency Q3'25 Change Constant currency change¹ FY'25 FY'24 Change Constant currency
change¹
change¹
$million $million % % $million % % $million $million % %
Underlying net interest income(2) 2,949 2,977 (1) (1) 2,737 8 8 11,185 11,096 1 1
Underlying non NII(2) 1,899 1,857 2 1 2,410 (21) (21) 9,709 8,600 13 13
Underlying operating income 4,848 4,834 - - 5,147 (6) (6) 20,894 19,696 6 6
Underlying operating expenses (3,429) (3,277) (5) (4) (2,953) (16) (16) (12,347) (11,790) (5) (4)
Underlying operating profit before impairment and taxation 1,419 1,557 (9) (8) 2,194 (35) (35) 8,547 7,906 8 9
Credit impairment (145) (130) (12) (12) (195) 26 24 (676) (557) (21) (21)
Other impairment (13) (353) 96 96 (20) 35 35 (42) (588) 93 93
Profit from associates and joint ventures (26) (27) 4 4 6 nm nm 71 50 42 42
Underlying profit before taxation 1,235 1,047 18 19 1,985 (38) (38) 7,900 6,811 16 18
Restructuring(5) (129) (119) (8) (7) (54) (139) (146) (320) (285) (12) (13)
FFG(5) (233) (81) (188) (188) (138) (69) (69) (531) (156) nm nm
DVA (9) (3) nm nm (27) 67 64 (31) (24) (29) (29)
Other items (50) (44) (14) (14) - nm nm (55) (332) 83 83
Reported profit before taxation 814 800 2 4 1,766 (54) (54) 6,963 6,014 16 18
Taxation (341) (274) (24) (3) (468) 27 31 (1,866) (1,972) 5 6
Profit for the period 473 526 (10) 4 1,298 (64) (62) 5,097 4,042 26 29
Net interest margin (%)(3,4) 2.09 2.21 (12) 1.94 15 2.03 2.06 (3)
Underlying return on tangible equity (%)(4) 9.6 8.1 150 13.4 (380) 14.7 11.7 300
Underlying basic earnings per share (cents) 37.1 28.9 28 52.3 (29) 229.7 168.1 37
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
Q4'25 Q4'24 Change Constant currency change¹ Q3'25 Change Constant currency change¹ FY'25 FY'24 Change Constant currency change¹
$million $million % % $million % % $million $million % %
Net interest income 1,503 1,709 (12) (12) 1,408 7 8 5,955 6,366 (6) (6)
Non NII 3,423 3,093 11 10 3,702 (8) (8) 14,987 13,177 14 14
Reported operating income 4,926 4,802 3 2 5,110 (4) (3) 20,942 19,543 7 7
Reported operating expenses (3,913) (3,475) (13) (11) (3,144) (24) (25) (13,304) (12,502) (6) (6)
Reported operating profit before impairment and taxation 1,013 1,327 (24) (23) 1,966 (48) (48) 7,638 7,041 8 10
Credit impairment (148) (129) (15) (14) (188) 21 20 (672) (547) (23) (22)
Goodwill & other impairment (24) (353) 93 93 (22) (9) (9) (65) (588) 89 89
Profit from associates and joint ventures (27) (45) 40 36 10 nm nm 62 108 (43) (43)
Reported profit before taxation 814 800 2 4 1,766 (54) (54) 6,963 6,014 16 18
Taxation (341) (274) (24) (3) (468) 27 31 (1,866) (1,972) 5 6
Profit/(loss) for the period 473 526 (10) 4 1,298 (64) (62) 5,097 4,042 26 29
Reported return on tangible equity (%)(2) 4.8 5.3 (50) 10.5 (570) 11.9 9.7 220
Reported basic earnings per share (cents) 20.4 20.2 1 44.5 (54) 195.4 141.3 38
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 13
Financial review
Operating income by product
Q4'25 Q4'24¹ Change Constant currency change² Q3'25 Change Constant currency change² FY'25 FY'24¹ Change Constant currency change²
$million $million % % $million % % $million $million % %
Transaction Services 1,521 1,666 (9) (9) 1,488 2 3 6,005 6,434 (7) (7)
Payments & Liquidity 1,065 1,193 (11) (11) 1,016 5 5 4,155 4,605 (10) (10)
Securities & Prime Services 173 161 7 9 166 4 5 648 611 6 7
Trade & Working Capital 283 312 (9) (10) 306 (8) (7) 1,202 1,218 (1) (1)
Global Banking 545 500 9 7 588 (7) (8) 2,229 1,935 15 15
Lending & Financial Solutions 481 434 11 9 496 (3) (3) 1,905 1,677 14 13
Capital Markets & Advisory 64 66 (3) (5) 92 (30) (32) 324 258 26 26
Global Markets 660 773 (15) (15) 848 (22) (22) 3,863 3,450 12 12
Macro Trading 499 654 (24) (24) 678 (26) (26) 3,116 2,852 9 9
Credit Trading 138 138 - - 206 (33) (32) 753 644 17 17
Valuation & Other Adj 23 (19) nm nm (36) 164 164 (6) (46) 87 87
Wealth Solutions 677 562 20 20 890 (24) (24) 3,086 2,490 24 24
Investment Products 553 452 22 22 691 (20) (20) 2,347 1,827 28 28
Bancassurance 124 110 13 13 199 (38) (37) 739 663 11 12
Deposits & Mortgages 1,050 1,058 (1) (1) 1,034 2 2 4,080 4,170 (2) (2)
CCPL & Other Unsecured Lending 264 270 (2) (2) 277 (5) (4) 1,080 1,081 - -
Ventures 56 60 (7) (8) 39 44 41 415 183 127 125
Digital Banks 58 41 41 39 49 18 19 195 142 37 36
SCV (2) 19 (111) (111) (10) 80 78 220 41 nm nm
Treasury & Other 75 (55) nm nm (17) nm nm 136 (47) nm nm
Total underlying operating income 4,848 4,834 - - 5,147 (6) (6) 20,894 19,696 6 6
1 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025 with no change
in total income
2 Comparisons presented on the basis of the current
period's transactional currency rate, ensuring like-for-like currency rates
between the two periods
The operating income by product commentary that follows is on an underlying
basis and comparisons are made to the equivalent period in 2024 on a constant
currency basis, unless otherwise stated. 2024 included items totalling $295
million (2025: $1 million loss) relating to gains on revaluation of FX
positions in Egypt and a hyperinflationary accounting adjustment in Ghana (the
notable items).
Transaction Services income decreased 7 per cent as growth in Securities &
Prime Services was more than offset by lower Payments & Liquidity and
Trade & Working Capital income. Payments & Liquidity income decreased
10 per cent, driven by the impact of lower interest rates and margin
compression, albeit passthrough rates continued to be tightly managed and
there was strong growth in balances. Securities & Prime Services income
grew 7 per cent due to higher fee from increase in custody balances. Trade
& Working Capital income was down 1 per cent as growth in fees was offset
by lower average volumes and margin compression.
Global Banking income increased 15 per cent as Lending & Financial
Solutions grew 13 per cent from strong pipeline execution which led to higher
origination and distribution volumes and increased carry income. Capital
Market & Advisory income was up 26 per cent on the back of increased bond
fees and Mergers & Acquisitions transactions.
Global Markets income increased 12 per cent driven by continued strong growth
in flow income which grew 15 per cent primarily from Financial Institutions
clients and increased Rates and Credit trading volumes. Episodic income grew 3
per cent from higher macro trading income.
Wealth Solutions income was up 24 per cent, driven by a 28 per cent increase
in Investment Products income and 12 per cent increase in Bancassurance. This
was driven by continued momentum in affluent new-to-bank onboarding, with
275,000 clients onboarded in 2025, and $52 billion of affluent net new money,
equivalent to 14 per cent growth of assets under management.
Deposits & Mortgages income decreased 2 per cent. The benefit from higher
deposit volumes and proactive pricing actions was more than offset by the
impact of lower interest rates, while Mortgages income increased year-on year
supported by margin expansion from lower funding cost and higher volumes in a
few select markets.
CCPL & Other Unsecured Lending income remained flat as an increase in
margins was partly offset by lower volumes resulting from portfolio
optimisation actions.
Ventures income more than doubled year-on year. Digital Banks income was up
$53 million driven by higher Deposit volumes and fee income as they continue
to grow their customer base. SCV income was up $179 million mainly from
a $238 million gain from the Solv India transaction.
Treasury & other performance improved by $183 million as the benefit in
Treasury from the repricing of longer dated assets was partly offset by the
non-repeat of the notable items.
Page 14
Financial review continued
Profit before tax by client segment
Q4'25 Q4'24(1) Change Constant currency change(2) Q3'25 Change Constant currency change(2) FY'25 FY'24(1) Change Constant currency change(2)
$million
$million
%
%
$million
%
%
$million
$million
%
%
Corporate & Investment Banking(1) 1,114 974 14 15 1,319 (16) (16) 5,875 5,431 8 9
Wealth & Retail Banking(1) 555 464 20 20 930 (40) (41) 2,883 2,537 14 14
Ventures (99) (90) (10) (9) (114) 13 13 (167) (385) 57 57
Central & other items(1) (335) (301) (11) (9) (150) (123) (119) (691) (772) 10 14
Underlying profit before taxation 1,235 1,047 18 19 1,985 (38) (38) 7,900 6,811 16 18
1 Underlying profit before taxation has been re-presented
in line with the RNS on Re-Presentation of Financial Information issued on 2
April 2025 to reflect the reallocation of Treasury income and certain costs
across segments
2 Comparisons presented on the basis of the current
period's transactional currency rate, ensuring like-for-like currency rates
between the two periods
The client segment commentary that follows is on an underlying basis and
comparisons are made to the equivalent period in 2024 on a constant currency
basis, unless otherwise stated. 2024 included items totalling $295 million
(2025: $1 million loss) 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 9
per cent. Income grew 4 per cent with a record performance in Global Markets
and strong double-digit growth in Global Banking partly offset by lower
Transaction Services. Expenses were 2 per cent higher, mainly from investments
in business initiatives, while credit impairment was a net charge of $4
million compared to a $120 million net release in 2024. The other impairment
decreased by $284 million year-on year due to non-repeat of software asset
write-offs.
Wealth & Retail Banking (WRB) profit before taxation increased 14 per
cent. Income grew by 6 per cent, driven by a record performance in Wealth
Solutions. Expenses increased 5 per cent, mainly from increased investment
spend on business initiatives including strategic hiring of relationship
managers. The credit impairment charge of $595 million was down $28 million
from portfolio optimisation actions across in unsecured lending portfolios.
The other impairment charge decreased $108 million compared to 2024 due to
non-repeat of software asset write-offs.
Ventures loss before tax decreased by $218 million to $167 million mainly from
higher income of $232 million. Digital Banks income increased by $53 million
driven by continued growth in customers and volumes. while SCV income
increased by $179 million supported by a $238 million gain from the Solv India
transaction. Expenses remained flat as costs were well controlled, while the
$59 million credit impairment charge was down $14 million year-on-year as
delinquency rates have improved in Mox.
Central & other items (C&O) loss before tax improved by $81 million
year-on year. Treasury benefited from the repricing of longer dated assets;
this was in part offset by the nonrepeat of the notable items. Other
impairments were lower by $159 million reflecting non-repeat of prior year
software asset write-offs.
Adjusted net interest income and margin
Q4'25 Q4'24 Change¹ Q3'25 Change FY'25 FY'24 Change¹
$million
$million
%
$million
%
$million
$million
%
Adjusted net interest income(2) 2,948 2,981 (1) 2,737 8 11,184 11,112 1
Average interest-earning assets 560,311 537,410 4 560,336 - 550,930 539,338 2
Average interest-bearing liabilities 599,439 543,195 10 599,796 - 581,911 539,787 8
Gross yield (%)(3) 4.40 5.03 (63) 4.52 (12) 4.60 5.29 (69)
Rate paid (%)(3) 2.16 2.79 63 2.41 25 2.43 3.22 79
Net yield (%)(3) 2.24 2.24 - 2.11 13 2.17 2.07 10
Net interest margin (%)(3,4) 2.09 2.21 (12) 1.94 15 2.03 2.06 (3)
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
Page 15
Financial review continued
Adjusted net interest income was up 1 per cent compared to 2024 as the benefit
from higher volumes and improved balance sheet mix was partly offset by the
impact of lower rates and margins. Net interest margin was 3 basis points
lower as the impact of falling rates and margin compression was partially
offset by better asset and deposit mix.
Average interest-earning assets were up 2 per cent compared to 2024 driven by
growth in Global Banking, Mortgages and Wealth Lending partially offset by
reduction in Treasury assets and Trade and Working Capital. Gross yields
decreased 69 basis points compared to the prior year due to the fall in
benchmark interest rates. Average interest-bearing liabilities increased 8 per
cent on the prior year from strong growth in customer accounts, primarily in
WRB Term and CASA deposits. The rate paid on liabilities decreased 79 basis
points compared with the average in the prior year, reflecting the impact of
interest rate movements and improved liability mix.
Credit risk summary
Income Statement (Underlying view)
Q4'25 Q4'24 Change(1) Q3'25 Change(1) FY'25 FY'24 Change(1)
$million
$million
%
$million
%
$million
$million
%
Total credit impairment charge / (release)(2) 145 130 12 195 (26) 676 557 21
Of which stage 1 and 2(2) 62 172 (64) 55 13 296 371 (20)
Of which stage 3(2) 83 (42) (298) 140 (41) 380 186 104
1 Variance is increase/(decrease) comparing current
reporting period to prior reporting periods
2 Refer to Credit Impairment charge table in Risk review
section for reconciliation from underlying to reported credit impairment
Balance sheet
31.12.25 30.09.25 Change(1) 30.06.25 Change(1) 31.12.24 Change(1)
$million
$million
%
$million
%
$million
%
Gross loans and advances to customers(2) 290,849 289,609 0 291,811 0 285,936 2
Of which stage 1 275,062 271,026 1 273,155 1 269,102 2
Of which stage 2 9,823 12,975 (24) 12,520 (22) 10,631 (8)
Of which stage 3 5,964 5,608 6 6,136 (3) 6,203 (4)
Expected credit loss provisions (4,061) (4,482) (9) (5,080) (20) (4,904) (17)
Of which stage 1 (528) (509) 4 (553) (5) (483) 9
Of which stage 2 (446) (515) (13) (465) (4) (473) (6)
Of which stage 3 (3,087) (3,458) (11) (4,062) (24) (3,948) (22)
Net loans and advances to customers 286,788 285,127 1 286,731 0 281,032 2
Of which stage 1 274,534 270,517 1 272,602 1 268,619 2
Of which stage 2 9,377 12,460 (25) 12,055 (22) 10,158 (8)
Of which stage 3 2,877 2,150 34 2,074 39 2,255 28
Cover ratio of stage 3 before/after collateral (%)(3) 52 / 68 62 / 78 (10) / (10) 66 / 82 (14) / (14) 64 / 78 (12) / (10)
Credit grade 12 accounts ($million) 1,111 1,373 (19) 2,095 (47) 969 15
Early alerts ($million) (5) 4,303 5,796 (26) 4,485 (4) 5,559 (23)
Investment grade corporate exposures (%)(3) 74 75 (1) 75 (1) 74 0
Aggregate top 20 corporate exposures as a percentage of Tier 1 capital(3,4) 64 63 1 56 8 61 3
1 Variance is increase/(decrease) comparing current
reporting period to prior reporting periods
2 Includes reverse repurchase agreements and other similar
secured lending held at amortised cost of $8,242 million (30 September 2025:
$6,162 million; 30 June 2025: $4,189 million; 31 December 2024: $9,660
million)
3 Change is the percentage points difference between the
two points rather than the percentage change
4 Excludes repurchase and reverse repurchase agreements
5 Includes non-purely precautionary early alert balances
Asset quality remained resilient during the year, 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.
The credit impairment charge of $676 million was up $119 million year-on-year,
of which $95 million relates to debt securities which were a net release of
$57 million in 2024 and a charge of $38 million in 2025. The loan loss rate of
19 basis points, which by definition excludes debt securities, remained flat
year-on year.
Page 16
Financial review continued
WRB charges of $595 million were $28 million lower reflecting the impact of
portfolio optimisation actions. The $59 million charge in Ventures was down
$14 million year-on-year as delinquency rates improved in Mox following a
change in underlying credit criteria. There was net charge in CIB of $4
million, with a non-repeat of prior year net releases. During the year the
non-linearity impact increased by $70 million to $113 million. This reflects
an increased probability weighting of the two downside scenarios from 32 per
cent as at 31 December 2024 to 41 per cent while the base forecast probability
weighting reduced from 68 per cent as at 31 December 2024 to 59 per cent as at
31 December 2025.
The Group retains a China commercial real estate (CRE) management overlay of
$36 million and a $47 million overlay for clients who have exposure to the
Hong Kong CRE sector. During 2025 the CRE overlays reduced by $11 million for
Hong Kong and $34 million for China primarily driven by exposure movements and
repayments.
Gross stage 3 loans and advances to customers of $6 billion were 4 per cent
lower year-on-year as repayments, client upgrades and write-offs more than
offset new inflows. Credit-impaired loans represented 2.1 per cent of gross
loans and advances, down from 2.2 per cent in the prior year. The stage 3
cover ratio before collateral of 52 per cent decreased by 12 percentage points
mainly due to restructuring and lower provisions on inflows as they are
covered by credit mitigants. The cover ratio post collateral at 68 per cent
decreased 10 percentage points as some of the stage 3 inflows are now being
covered by guarantees and credit insurance which are not classified as
tangible collateral.
Early alert exposures at $4.3 billion reduced by $1.3 billion year-on-year
primarily from migrations into credit grade 12, while credit grade 12 balances
remained around $1 billion as new inflows were largely offset by sovereign
client upgrades.
The proportion of investment grade corporate exposures of 74 per cent was
broadly stable year-on-year.
Restructuring, FFG, DVA and Other items
FY'25 FY'24 Q4'25
Restruc- FFG $million DVA $million Net loss on businesses disposed of/ held for sale $million Other items $million Restruc- FFG(1) $million DVA $million Net loss on businesses disposed of/ held for sale(2) $million Other items(3) $million Restruc- FFG $million DVA $million Net loss on businesses disposed of/ held for sale $million Other items $million
turing $million turing(1) $million turing $million
Operating income (24) - (31) (10) 113 103 - (24) (232) - (21) - (9) (5) 113
Operating expenses (289) (510) - - (158) (456) (156) - - (100) (103) (223) - - (158)
Credit impairment 4 - - - - 10 - - - - (3) - - - -
Other impairment (2) (21) - - - - - - - - (1) (10) - - -
Profit from associates and joint ventures (9) - - - - 58 - - - - (1) - - - -
Profit/(loss) before taxation (320) (531) (31) (10) (45) (285) (156) (24) (232) (100) (129) (233) (9) (5) (45)
1 FFG (Fit for Growth) charge previously reported within
Restructuring has been re-presented as a separate item
2 Net loss on businesses disposed of/ held for sale 2024
includes $172 million primarily relating to recycling of FX translation losses
from reserves into P&L on the sale of Zimbabwe, $26 million loss on sale
of Angola, $19 million loss on Sierra Leone and $15 million loss on the
Aviation business disposal
3 Other items include $100 million charge relating to
Korea equity-linked securities (ELS) portfolio
The Group's reported 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 $320 million, reflect the impact of actions to
transform the organisation to improve productivity, primarily additional
redundancy charges, simplifying technology platforms and business exits.
During 2025 charges related to the Fit for Growth programme totalled $531
million. Movements in the Debit Valuation Adjustment (DVA) were a negative $31
million driven by the tightening of the Group's asset swap spreads.
Other items charge of $45 million reflect mainly a $113 million gains on the
sale of property, charges booked for the participation in a compensation
scheme recommended by the Korean Financial Supervisory Service and the
settlement of a legal case relating to section 90A of the UK Financial Service
Market Act.
Page 17
Financial review continued
Balance sheet and liquidity
31.12.25 30.09.25 Change(1) 30.06.25 Change(1) 31.12.24 Change(1
$million
$million
%
$million
%
$million ) %
Assets
Loans and advances to banks 43,901 45,612 (4) 42,386 4 43,593 1
Loans and advances to customers 286,788 285,127 1 286,731 - 281,032 2
Other assets 589,266 582,911 1 584,819 1 525,063 12
Total assets 919,955 913,650 1 913,936 1 849,688 8
Liabilities
Deposits by banks 30,846 30,003 3 30,883 - 25,400 21
Customer accounts 530,161 526,284 1 517,390 2 464,489 14
Other liabilities 304,362 304,143 - 310,993 (2) 308,515 (1)
Total liabilities 865,369 860,430 1 859,266 1 798,404 8
Equity 54,586 53,220 3 54,670 - 51,284 6
Total equity and liabilities 919,955 913,650 1 913,936 1 849,688 8
Advances-to-deposits ratio (%)(2) 51.4 50.7 51.0 53.3
Liquidity coverage ratio (%) 155 151 146 138
1 Variance is increase/(decrease)comparing current
reporting period to prior reporting periods
2 The Group excludes $8,474 million held with central
banks (30 September 2025: $8,956 million, 30 June 2025: $14,239 million and 31
December 2024: $19,187 million) that has been confirmed as repayable at the
point of stress. Advances exclude repurchase agreement and other similar
secured lending of $8,243 million (30 September 2025: $6,162 million, 30 June
2025: $4,189 million and 31 December 2024: $9,660 million) and include loans
and advances to customers held at fair value through profit or loss of $12,355
million (30 September 2025: $9,421 million, 30 June 2025: $8,119 million and
31 December 2024: $7,084 million). Deposits include customer accounts held at
fair value through profit or loss of $19,414 million (30 September 2025:
$24,545 million, 30 June 2025: $24,958 million and 31 December 2024: $21,772
million)
The Group's balance sheet remains strong, liquid and well diversified:
Loans and advances (L&A) to customers increased 2 per cent, or $6 billion,
to $287 billion as at 31 December 2025. Excluding a $7 billion increase from
currency translation and the $14 billion reduction in Treasury and securities
backed loans held to collect, the underlying growth was $13 billion or 5 per
cent. The underlying growth is primarily driven by Global Banking in CIB and
Wealth Lending and Mortgages in WRB.
Customer accounts of $530 billion increased by $66 billion or 14 per cent.
Excluding a $8 billion increase from currency translation, customer accounts
increased by $58 billion, or 12 per cent. This was primarily driven by a $31
billion increase in WRB term and CASA deposits from targeted campaigns and a
focus on attracting new to bank affluent clients and net new money. There was
also a $13 billion increase in Transaction Services from CASA inflows and a $7
billion increase in corporate term deposits from Treasury management
activities. Deposit from banks increased by 21 per cent reflecting balance
sheet management activities across a number of markets.
Other assets increased by $64 billion from 31 December 2024, with a $14
billion increase in cash and balances with central banks, a $22 billion
increase in investment securities primarily debt securities, a $22 billion
increase in non-financial assets mainly an increase in precious metals
inventory and price, and a $18 billion increase in financial assets held at
fair value through profit or loss. The increases were partly offset by a $16
billion reduction in derivative financial instruments.
Other liabilities decreased 1 per cent or $4 billion from 31 December 2024,
with a $14 billion decrease in derivative balances partly offset by an
increase of $4 billion in financial liabilities held at fair value through
profit and loss and a $8 billion increase in debt securities in issue.
The advances-to-deposits ratio dropped around 2 percentage points year-on-year
to 51.4 per cent. The point-intime LCR of 155 per cent increased 17 percentage
points year-on-year due to balance sheet growth and ongoing Treasury liquidity
management actions. It remains well above the minimum regulatory requirement
of 100 per cent.
Risk-weighted assets
31.12.25 30.09.25 Change(1) 30.06.25 Change(1) 31.12.24 Change(1
$million
$million
%
$million
%
$million ) %
By risk type
Credit risk 192,145 191,074 1 191,348 - 189,303 2
Operational risk 35,223 32,578 8 32,578 8 29,479 19
Market risk 30,663 34,726 (12) 35,758 (14) 28,283 8
Total RWAs 258,031 258,378 (0) 259,684 (1) 247,065 4
1 Variance is increase/(decrease) comparing current
reporting period to prior reporting periods
Page 18
Financial review continued
Total risk-weighted assets (RWA) of $258 billion increased $11 billion or 4
per cent in comparison to 31 December 2024.
Credit risk RWA increased by $2.8 billion to $192.1 billion. This was driven
by an increase of $6.4 billion in asset growth, quality and mix, a $1.0
billion increase in derivatives and a $3.9 billion increases from foreign
currency translation. The increase was partly offset by a decrease of $7.4
billion from optimisation actions and $1.1 billion reduction from model
changes.
Operational risk RWA increased by $5.7 billion to $35.2 billion driven by an
increase in average income as measured over a rolling three-year time
horizon. 2025 includes a $3.1 billion increases relating to average income for
the years 2022 to 2024 and a $2.6 billion increase relating to the average
income for the years 2023 to 2025 as the Group is now performing the annual
operational risk RWA computation in the fourth quarter of the current year
rather than the first quarter of the following year.
Market risk RWA increased by $2.4 billion to $30.7 billion driven mainly by
increase in specific interest rate risk from higher credit trading.
Capital base and ratios
31.12.25 30.09.25 Change 30.06.25 Change 31.12.24 Change(1
$million
$million
%
$million
%
$million ) %
CET1 capital 36,440 36,594 (0) 37,260 (2) 35,190 4
Additional Tier 1 capital (AT1) 7,509 6,515 15 6,517 15 6,482 16
Tier 1 capital 43,949 43,109 2 43,777 ‒ 41,672 5
Tier 2 capital 9,278 9,422 (2) 9,504 (2) 11,419 (19)
Total capital 53,227 52,531 1 53,281 ‒ 53,091 ‒
CET1 capital ratio (%)(2) 14.1 14.2 (4)bps 14.3 (23)bps 14.2 (12)bps
Total capital ratio (%)(2) 20.6 20.3 30bps 20.5 11bps 21.5 (86)bps
Leverage ratio (%)(2) 4.7 4.6 8bps 4.7 (1)bps 4.8 (11)bps
1 Variance is increase/(decrease) comparing current
reporting period to prior reporting periods
2 Change is percentage points difference between two
points rather than percentage change
The Group's CET1 ratio of 14.1 per cent was 12 basis points lower year-on-year
and is 3.9 percentage points above the Group's latest regulatory minimum
requirement. The Group's Pillar 2A reduced in 2025 post a supervisory review
resulting in a 22-basis points reduction in the Group's CET1 requirement.
There was 206 basis points of CET1 accretion from underlying profits, and a
further 19 basis points uplift primarily from fair value gains on other
comprehensive income, FX, software intangibles and regulatory capital
adjustments. This was partly offset by 46 basis points drop from an increase
in RWAs.
The Group completed the $1.5 billion share buyback programme announced with
the full year 2024 results on 30th July 2025, purchasing 98.2 million
shares. The Group subsequently announced a $1.3 billion share buyback
programme on 31 July 2025 concurrently with the half year 2025 results, and as
of 31 December 2025, the Group had spent $1.1 billion purchasing 53.1 million
ordinary shares. Whilst the $1.3 billion share buyback was completed on 26
January 2026 purchasing 62.2 million shares, the entire $1.3 billion is
deducted from CET1 in the reporting period. The 2025 share buybacks reduced
the CET1 ratio by 113 basis points.
The Board has recommended a final dividend of 49 cents per share or $1,092
million resulting in a total 2025 ordinary dividend of 61 cents a share or
$1.38 billion. This, combined with the payments due to AT1 and preference
shareholders cost approximately 78 basis points.
The Board has announced a share buyback for up to a maximum consideration of
$1.5 billion to further reduce the number of ordinary shares in issue by
cancelling the repurchased shares. The terms of the buyback will be published,
and the programme will start shortly and is expected to reduce the Group's
CET1 ratio in the first quarter of 2026 by 58 basis points.
The Group's UK leverage ratio of 4.7 per cent remains significantly above its
minimum requirement of 3.7 per cent.
Page 19
Supplementary financial information
Underlying performance by client segment
2025 2024¹
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total
$million $million $million $million $million $million $million $million $million $million
Operating income 12,394 8,464 415 (379) 20,894 11,935 8,021 183 (443) 19,696
External 11,718 3,619 416 5,141 20,894 10,480 3,533 184 5,499 19,696
Inter-segment 676 4,845 (1) (5,520) - 1,455 4,488 (1) (5,942) -
Operating expenses (6,509) (4,982) (461) (395) (12,347) (6,334) (4,749) (460) (247) (11,790)
Operating profit/(loss) before impairment losses and taxation 5,885 3,482 (46) (774) 8,547 5,601 3,272 (277) (690) 7,906
Credit impairment (4) (595) (59) (18) (676) 120 (623) (73) 19 (557)
Other impairment (6) (4) (23) (9) (42) (290) (112) (18) (168) (588)
Profit/(loss) from associates and joint ventures - - (39) 110 71 - - (17) 67 50
Underlying profit/(loss) before taxation 5,875 2,883 (167) (691) 7,900 5,431 2,537 (385) (772) 6,811
Restructuring & Other items(2,5) (525) (456) (4) 48 (937) (234) (315) (3) (245) (797)
Reported profit/(loss) before taxation 5,350 2,427 (171) (643) 6,963 5,197 2,222 (388) (1,017) 6,014
Total assets 516,923 130,489 8,335 264,208 919,955 485,680 122,357 6,259 235,392 849,688
Of which: loans and advances to customers 205,493 126,980 2,660 14,453 349,586 197,582 119,263 1,388 21,324 339,557
loans and advances to customers 142,698 126,978 2,659 14,453 286,788 139,063 119,257 1,388 21,324 281,032
loans held at fair value through profit or loss (FVTPL)³ 62,795 2 1 - 62,798 58,519 6 - - 58,525
Total liabilities 491,976 256,332 6,276 110,785 865,369 477,385 220,416 5,277 95,326 798,404
Of which: customer accounts⁴ 319,670 252,033 5,773 7,698 585,174 297,690 216,662 5,028 3,883 523,263
Risk-weighted assets 175,921 56,782 4,903 20,425 258,031 169,403 57,287 2,406 17,969 247,065
Income return on risk-weighted assets (%) 7.0 14.6 12.3 (1.8) 8.1 7.2 13.7 8.7 (2.0) 7.9
Underlying return on tangible equity (%) 15.8 25.5 nm (17.3) 14.7 14.9 20.7 nm (15.7) 11.7
Cost to income ratio (%) 52.5 58.9 nm nm 59.1 53.1 59.2 nm nm 59.9
1 Segment results have been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025.
2 Other items 2025 include gains on sale of office space
and an additional provision with respect to a proposed penalty amount with
regards to the Korea equity-linked securities (ELS) matter and the settlement
of a litigation matter. Other items 2024 include $100 million charge relating
to Korea equity-linked securities (ELS) portfolio, $172 million primarily
relating to recycling of FX translation losses from reserves into P&L on
the sale of Zimbabwe, $26 million loss on sale of Angola, $19 million loss on
Sierra Leone and $15 million loss on the Aviation business disposal.
Refer Restructuring, FFG (Fit for Growth), DVA and Other items table in
Finance review section.
3 Loans held at FVTPL includes $50,443 million (2024:
$51,441 million) of reverse repurchase agreements.
4 Customer accounts includes $19,414 million (2024:
$21,772 million) of FVTPL and $35,559 million (2024: $37,002 million) of
repurchase agreements.
5 Restructuring, FFG (Fit for Growth), DVA, Other items
have been combined and now disclosed as one line item i.e. "Restructuring and
Other items"
Page 20
Supplementary financial information continued
Corporate & Investment Banking
Q4'25 Q4'24(3,4) Change(1) Constant currency change(1,2) Q3'25 Change(1) Constant currency change(1,2) FY'25 FY'24(3,4) Change(1) Constant currency change(1,2)
$million $million % % $million % % $million $million % %
Transaction Services 1,521 1,666 (9) (9) 1,488 2 3 6,005 6,434 (7) (7)
Payments & Liquidity 1,065 1,193 (11) (11) 1,016 5 5 4,155 4,605 (10) (10)
Securities & Prime Services 173 161 7 9 166 4 5 648 611 6 7
Trade & Working Capital 283 312 (9) (10) 306 (8) (7) 1,202 1,218 (1) (1)
Global Banking 545 500 9 7 588 (7) (8) 2,229 1,935 15 15
Lending & Financial Solutions 481 434 11 9 496 (3) (3) 1,905 1,677 14 13
Capital Markets & Advisory 64 66 (3) (5) 92 (30) (32) 324 258 26 26
Global Markets 660 773 (15) (15) 848 (22) (22) 3,863 3,450 12 12
Macro Trading 499 654 (24) (24) 678 (26) (26) 3,116 2,852 9 9
Credit Trading 138 138 - - 206 (33) (32) 753 644 17 17
Valuation & Other Adj 23 (19) nm nm (36) 164 164 (6) (46) 87 87
Treasury & Other 115 (108) nm nm 46 150 153 297 116 156 163
Operating income(4) 2,841 2,831 - - 2,970 (4) (4) 12,394 11,935 4 4
Operating expenses (1,771) (1,777) - 1 (1,583) (12) (12) (6,509) (6,334) (3) (2)
Operating profit before impairment losses and taxation 1,070 1,054 2 2 1,387 (23) (23) 5,885 5,601 5 6
Credit impairment 46 56 (18) (18) (64) 172 173 (4) 120 (103) (104)
Other impairment (2) (136) 99 99 (4) 50 50 (6) (290) 98 98
Underlying profit before taxation 1,114 974 14 15 1,319 (16) (16) 5,875 5,431 8 9
Restructuring & Other items (234) (121) (93) (90) (145) (61) (63) (525) (234) (124) (123)
Reported profit before taxation 880 853 3 4 1,174 (25) (25) 5,350 5,197 3 4
Total assets 516,923 485,680 6 6 499,829 3 3 516,923 485,680 6 6
Of which: loans and advances to customers(⁵) 205,493 197,582 4 2 202,157 2 1 205,493 197,582 4 2
Total liabilities 491,976 477,385 3 2 494,081 - - 491,976 477,385 3 2
Of which: customer accounts(⁶) 319,670 297,690 7 6 329,011 (3) (3) 319,670 297,690 7 6
Risk-weighted assets 175,921 169,403 4 nm 175,434 - nm 175,921 169,403 4 nm
Income return on risk-weighted assets (%)(⁷) 6.4 6.6 (20) nm 6.8 (40) nm 7.0 7.2 (20) nm
Underlying return on tangible 11.6 10.4 120 nm 13.1 (150) nm 15.8 14.9 90 nm
equity (%)(⁷)
Cost to income ratio (%)(⁸) 62.3 62.8 0.5 0.9 53.3 (9.0) (9.2) 52.5 53.1 0.6 0.9
1 Variance is better/(worse), except for risk-weighted
assets, assets and liabilities which is increase/(decrease)
2 Comparisons presented on the basis of the current
period's transactional currency rate, ensuring like-for-like currency rates
between the two periods
3 Segment results have been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025
4 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
5 Loans and advances to customers includes FVTPL and
reverse repurchase agreements
6 Customer accounts includes FVTPL and repurchase
agreements
7 Change is the basis points (bps) difference between the
two periods rather than the percentage change
8 Change is the percentage points difference between the
two periods rather than the percentage change
CIB supports local and large corporations, governments, banks and investors
with their transaction services, banking and financial markets' needs.
We provide differentiated cross-border capabilities to over 17,000 clients in
some of the world's fastest-growing economies and most active trade
corridors.
Segment overview
Our strong and deep local presence enables us to co‑create bespoke
financing solutions and connect our clients multilaterally to investors,
suppliers, buyers and sellers. Our products and services enable our clients
to move capital, manage risk and invest to create wealth. Our clients
represent a large and important part of the economies we serve. CIB is at
the heart of the Group's shared purpose to drive commerce and prosperity
through our unique diversity.
We are also committed to promoting sustainable finance in our markets and
channelling capital to where the impact will be greatest. We are delivering on
our ambition to support sustainable economic growth, increasing support and
funding for financial offerings that have a positive impact on our communities
and environment.
Page 21
Supplementary financial information continued
Business focus
• Deliver sustainable growth for clients by leveraging our unique network
to facilitate trade, capital and investment flows across our footprint
markets.
• Generate high-quality returns by improving income mix, growing
capital-lite income, expanding our wallet share, and driving balance sheet
velocity, while maintaining disciplined risk management.
• Be a digital-first and data-driven bank that delivers enhanced client
experiences.
• Accelerate our sustainable finance offering to our clients through
product innovation and enabling transition to a low-carbon future.
Progress
• Our underlying income performance was driven by our diversified product
suite, expanded client solutions and optimised resource allocation by focusing
on clients whose cross-border needs played directly to our strengths. Our
cross-border income was 61.5 per cent of total CIB income with growth across
strategic corridors.
• We increased the share of income from our financial institution income
as a percentage of total CIB income, from 51 per cent in 2024 to 54 per cent
in 2025. Client Digital Transaction Initiation stood at 72.1 per cent (2024:
68.3 per cent) largely in Cash, Trade and FX. Client experience remained at
the centre of our digital transformation, with our Customer Satisfaction Score
improving to 76.5 per cent (2024: 71.6 per cent).
• We have delivered $1.07 billion sustainable finance income, achieving
our target of $1 billion income by 2025, and have mobilised $157 billion
against our commitment to mobilise $300 billion of sustainable finance by
2030.
Performance highlights
• Underlying profit before tax of $5,875 million increased by 9 per cent
at constant currency driven by higher income, and lower impairment charge
partially offset by higher operating expenses.
• Underlying operating income of $12,394 million increased by 4 per cent
at constant currency primarily driven by strong performance in Global Markets
and Global Banking. Global Markets increased 12 per cent driven by continued
strong growth in flow income (up 15 per cent) and growth in episodic income
(3 per cent). Global Banking increased 15 per cent due to higher origination
and distribution volumes from strong pipeline execution, coupled with
increased Capital Markets activities. Transaction Services income decreased 7
per cent as growth in Securities & Prime Services was offset by lower
Payments & Liquidity and Trade & Working Capital incomes.
• Underlying operating expenses were up by 2 per cent at constant
currency largely due to strategic business investments and higher
performance-related pay.
• Credit impairment was a net charge of $4 million as the gross
impairments were offset by recoveries. Other impairment decreased by $284
million year-on year due to non-repeat of software asset write-offs.
• RWAs of $175.9 billion were up $6.5 billion, mainly driven by higher
operational and market RWA. Credit RWA increase from asset growth was offset
by RWA optimisation actions.
Page 22
Supplementary financial information continued
Wealth & Retail Banking
Q4'25 Q4'24(3,4) Change(1) Constant currency change(1,2) Q3'25 Change(1) Constant currency change(1,2) FY'25 FY'24(3,4) Change(1) Constant currency change(1,2)
$million $million % % $million % % $million $million % %
Wealth Solutions 677 562 20 20 890 (24) (24) 3,086 2,490 24 24
Investment Products 553 452 22 22 691 (20) (20) 2,347 1,827 28 28
Bancassurance 124 110 13 13 199 (38) (37) 739 663 11 12
Deposits & Mortgages 1,050 1,058 (1) (1) 1,034 2 2 4,080 4,170 (2) (2)
CCPL & Other Unsecured Lending 264 270 (2) (2) 277 (5) (4) 1,080 1,081 - -
Treasury & Other 59 151 (61) (62) 51 16 14 218 280 (22) (23)
Operating income(4) 2,050 2,041 - - 2,252 (9) (9) 8,464 8,021 6 6
Operating expenses (1,341) (1,327) (1) (1) (1,212) (11) (11) (4,982) (4,749) (5) (5)
Operating profit before impairment losses and taxation 709 714 (1) (1) 1,040 (32) (32) 3,482 3,272 6 7
Credit impairment (156) (176) 11 11 (107) (46) (48) (595) (623) 4 4
Other impairment 2 (74) 103 101 (3) 167 133 (4) (112) 96 96
Underlying profit before taxation 555 464 20 20 930 (40) (41) 2,883 2,537 14 14
Restructuring & Other Items (257) (77) nm nm (69) nm nm (456) (315) (45) (47)
Reported profit before taxation 298 387 (23) (22) 861 (65) (66) 2,427 2,222 9 10
Total assets 130,489 122,357 7 4 131,164 (1) - 130,489 122,357 7 4
Of which: loans and advances to customers(5) 126,980 119,263 6 4 127,423 - - 126,980 119,263 6 4
Total liabilities 256,332 220,416 16 14 250,884 2 2 256,332 220,416 16 14
Of which: customer accounts(6) 252,033 216,662 16 14 246,528 2 2 252,033 216,662 16 14
Risk-weighted assets 56,782 57,287 (1) nm 58,373 (3) nm 56,782 57,287 (1) nm
Income return on risk-weighted assets (%)(7) 14.1 14.1 - nm 15.6 (150) nm 14.6 13.7 90 nm
Underlying return on tangible equity (%)(7) 17.4 14.1 330 nm 35.6 (1,820) nm 25.5 20.7 480 nm
Cost to income ratio (%)(8) 65.4 65.0 (0.4) (0.3) 53.8 (11.6) (11.8) 58.9 59.2 0.3 0.6
1 Variance is better/(worse), except for risk-weighted
assets, assets and liabilities which is increase/(decrease)
2 Comparisons presented on the basis of the current
period's transactional currency rate, ensuring like-for-like currency rates
between the two periods
3 Segment results have been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025
4 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
5 Loans and advances to customers includes FVTPL and
reverse repurchase agreements
6 Customer accounts includes FVTPL and repurchase
agreements
7 Change is the basis points (bps) difference between the
two periods rather than the percentage change
8 Change is the percentage points difference between the
two periods rather than the percentage
change
WRB continues to build on strong momentum, reinforcing our position as a
leading international wealth manager across Asia, Africa and the Middle East.
Our trusted brand, deep local presence and expansive global network are our
core differentiators. Clients choose us for our expertise, personalised
solutions and stability, enabling us to capture strong structural tailwinds
driving cross-border wealth flows
Segment overview
We serve individuals and small and medium businesses by directly addressing
their international and wealth needs. We focus on the affluent spectrum,
encompassing Private, Priority Private, Priority and Premium Banking clients,
offering them a comprehensive product suite spanning: deposits, payments,
financing, advisory, investments and bancassurance. In particular, our open
architecture allows us to collaborate with partners to bring best-in-class
and first-to-market wealth solutions to our clients.
In Personal Banking, we focus on engaging emerging affluent clients early in
their wealth journey. By partnering with them as their first or primary wealth
advisor, we grow with them as they progress along the affluent continuum,
cultivating a strong pipeline of our future affluent clients.
For our small and medium business clients, we provide an integrated offering
through the Small and Medium Enterprise (SME) segment that covers both their
business operations and personal wealth needs. Many of these fast-growing
companies particularly value our international network for their
cross‑border needs.
WRB is closely integrated with the Group's other client segments. We support
entrepreneurs from our Private Bank with one-stop solutions for their
corporate banking needs, offer employee banking services to CIB clients and
serve as a source of high-quality liquidity for the Group.
Page 23
Supplementary financial information continued
Business focus
• Lead in international wealth management - We will capitalise on our
position as a leading international wealth manager, by capturing wealth flows
across key global corridors, particularly for Global Chinese and Global Indian
clients, in Asia, Africa and the Middle East. We will leverage our unique
advantages: our client continuum, global network and deep expertise in wealth
solutions.
• Deliver hyper-personalised, advisory-led wealth solutions - We will
provide a differentiated client experience through hyper-personalised
advisory-led propositions. This will be powered by a best-in-class open
architecture solutions platform, enhanced by data and AI.
• Accelerate investment in our growth engines - To drive growth and market
share, we will accelerate investment in our core enablers: our affluent
frontline teams, our wealth and digital platforms, our client centres, and our
brand and marketing initiatives.
• Serve entrepreneurial and SME owner clients - We will comprehensively
serve SME business owners and international entrepreneurs whose personal and
business finances are deeply interconnected. Our proposition for them will be
anchored in integrated solutions for cash, trade, cross-border connectivity
and wealth management.
• Continue reshaping our mass retail business - Building on our progress,
we will continue to reshape our mass retail business. Our focus remains on
building a strong pipeline of future affluent and international banking
clients, while actively optimising low returning, single-product relationships
and geographies.
Progress
• Ranked #3 wealth manager in Asia based on Asian Private Banker rankings
for 2024(1) . Affluent AUM stood at $447 billion as of 31 December 2025.
• Strong momentum in client growth with 275,000 NTB affluent clients and
affluent NNM(2) reaching $52 billion, representing 14 per cent of AUM.
• Up-tiered 307,000 individual clients through our wealth continuum across
and within the personal and affluent segments, by tailoring our propositions
and service models to the needs of our clients.
• Continued to invest in the hiring of affluent relationship managers and
wealth specialists, uplift digital capabilities and build new client centres;
opened seven new client centres in 2025, taking the total to 18.
• Continued to digitise and enhance the wealth client journeys with new
self-service capabilities, streamline processes, and build more comprehensive
portfolio advisory capabilities for both clients and frontline teams.
• Launched three funds managed by SC Variable Capital Company and expanded
our differentiated wealth solutions, such as our exclusive Signature Select
and Signature CIO funds, with the combined AUM from Standard Chartered
exclusive funds crossing $8 billion.
• Recognised for excellence in private banking, digital wealth and other
capabilities, with 40 industry awards received in 2025.
Performance highlights
• Underlying profit before tax of $2,883 million, increased by 14 per
cent at constant currency driven by higher income, lower credit and other
impairment charges, partially offset by higher operating expenses.
• Underlying operating income of $8,464 million grew 6 per cent at
constant currency primarily driven by a 24 per cent increase in Wealth
Solutions, with broad-based growth across markets and products. This growth
was supported by sustained momentum in affluent NTB clients and NNM inflows.
Deposits & Mortgages decreased 2 per cent at constant
currency, reflecting rate-driven pressures from lower benchmark interest
rates, partially offset by volume growth and proactive pricing actions. CCPL
& Other Unsecured Lending remained flat, with strategic
portfolio optimisation in selective markets offsetting benefits from improved
margins.
• Underlying operating expenses increased by 5 per cent in constant
currency with continued investment in affluent business growth initiatives,
including the strategic hiring of affluent relationship managers and uplifting
digital capabilities. Cost growth was managed through efficiency initiatives
on branches, as well as off-strategy products and client segments.
Productivity measures also increased efficiency of relationship managers and
improved client servicing.
• The credit impairment charge decreased by $28 million to $595 million,
primarily driven by optimisation actions in the unsecured lending portfolio.
Other impairment charges decreased by $108 million due to the non-repeat of
software asset write-offs.
• RWAs reduced by $0.5 billion to $56.8 billion, mainly due to
optimisation of our unsecured lending portfolio and the transfer of an
unsecured lending portfolio to Mox Bank in Ventures, allowing growth in the
affluent segment through the Wealth Lending and Secured Lending portfolios.
Total liabilities increased by 14 per cent at constant currency, underpinned
by NTB acquisition and growth in affluent NNM.
1 Source: Asian Private Banker. This ranking combines Asia
Private Banker Wealth Continuum & Private Banking rankings for 2024; using
Wealth Continuum AUM balances for those banks which provide both
2 Net New Money is shown at YTD constant currency FX rates
Page 24
Supplementary financial information continued
Ventures
Q4'25 Q4'24(3) Change(1) Constant currency change(1,2) Q3'25 Change(1) Constant currency change(1,2) FY'25 FY'24(3) Change(1) Constant currency change(1,2)
$million $million % % $million % % $million $million % %
Digital Banks 58 41 41 39 49 18 19 195 142 37 36
SCV (2) 19 (111) (111) (10) 80 78 220 41 nm nm
Operating income 56 60 (7) (8) 39 44 41 415 183 127 125
Operating expenses (106) (113) 6 6 (116) 9 9 (461) (460) - -
Operating loss before impairment losses and taxation (50) (53) 6 4 (77) 35 34 (46) (277) 83 84
Credit impairment (22) (14) (57) (47) (13) (69) (69) (59) (73) 19 20
Other impairment (8) (17) 53 53 (15) 47 47 (23) (18) (28) (21)
Profit/(loss) from associates and (19) (6) nm (200) (9) (111) (100) (39) (17) (129) (129)
joint ventures
Underlying (loss)/profit before taxation (99) (90) (10) (9) (114) 13 13 (167) (385) 57 57
Restructuring & Other items (2) (2) - (50) (1) (100) (200) (4) (3) (33) (67)
Reported (loss)/profit before taxation (101) (92) (10) (10) (115) 12 11 (171) (388) 56 56
Total assets 8,335 6,259 33 26 7,850 6 6 8,335 6,259 33 26
Of which: loans and advances to customers(4) 2,660 1,388 92 87 1,631 63 63 2,660 1,388 92 87
Total liabilities 6,276 5,277 19 15 6,122 3 2 6,276 5,277 19 15
Of which: customer accounts(5) 5,773 5,028 15 11 5,798 - (1) 5,773 5,028 15 11
Risk-weighted assets 4,903 2,406 104 nm 3,385 45 nm 4,903 2,406 104 nm
Income return on risk-weighted 5.4 10.4 (500) nm 4.7 70 nm 12.3 8.7 360 nm
assets (%)(6)
Underlying return on tangible nm nm nm nm nm nm nm nm nm nm nm
equity (%)(6)
Cost to income ratio (%)(7) nm nm nm nm nm nm nm nm nm nm nm
1 Variance is better/(worse), except for risk-weighted
assets, assets and liabilities which is increase/(decrease)
2 Comparisons presented on the basis of the current
period's transactional currency rate, ensuring like-for-like currency rates
between the two periods
3 Segment results have been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025
4 Loans and advances to customers includes FVTPL
5 Customer accounts includes FVTPL
6 Change is the basis points (bps) difference between the
two periods rather than the percentage change
7 Change is the percentage points difference between the
two periods rather than the percentage change
Formed in 2022, the Ventures client segment is a consolidation of SC Ventures
and its related entities as well as the Group's two majority-owned digital
banks - Mox in Hong Kong and Trust in Singapore.
Segment overview
SC Ventures builds and invests in breakthrough ventures, in and beyond
banking. It provides a platform for organisations to drive innovation and
transformation. The SC Ventures platform currently represents a diverse
portfolio of almost 30 ventures and more than 30 investments.
Mox, a cloud-native, mobile-only digital bank, was launched in Hong Kong as a
joint venture with HKT, PCCW and Trip.com in September 2020. It penetrated
over 10 per cent of Hong Kong's total bankable population, and Mox Credit Card
is ranked as the seventh-largest credit card portfolio among all Hong Kong
retail banks(1).
Trust Bank is a digital retail bank, launched in Singapore in 2022 in
partnership with FairPrice Group. It has over one million customers, making it
the fourth largest retail bank in Singapore.
Business focus
• SC Ventures' focus is on building and scaling new business models across
three high-conviction themes of Digital Banking & Lifestyle, Trade &
Supply Chains and Digital Assets, enabled by AI, Web3/Blockchain, ESG and
Quantum. We do this by connecting ecosystems, partners and clients to create
value and new sources of revenues, providing optionality for the Bank. In
addition, SC Ventures identifies partners, and makes minority investments in
companies that provide technology capabilities, which can then be integrated
into the Bank and Ventures.
• Mox aims to become a leading digital bank, focusing on cards, digital
lending, deposits, wealth management and insurance. Mox plans to enhance its
offering with a broader range of digital financial solutions to cater to
customer needs in a competitive market.
1 According to TransUnion's Market Insights and Intelligence Dashboard
(MIID) for the period from January to December 2025.
Page 25
Supplementary financial information continued
• Trust Bank aims to establish itself as one of the main retail banks in
Singapore, and gain wallet share by capitalising on its market-leading
customer experience. Key near-term priorities are to continue to innovate in
core banking products including savings and lending, deepen engagement with
existing customers and to broaden its wealth management proposition.
Progress
• In 2025, SC Ventures maintained positive momentum, further enhancing its
business performance. It launched four new ventures, raised funds amid a
challenging environment, and expanded its geographical reach. Across SC
Ventures subsidiaries, the customer base grew by 57 per cent year-on-year to
reach nearly 1.1 million.
SC Ventures completed the sale of Solv India to Jumbotail, one of India's
leading B2B marketplaces. The combined business is now one of the largest B2B
e-commerce platforms in India. As a result of the transaction, SC Ventures
reported a gain of $0.2 billion in its second quarter 2025 results.
SC Ventures' portfolio of compliant and bank-grade digital asset platforms
continues to prove our commitment to building infrastructure that will enable
institutional adoption. During the year, Zodia Markets successfully raised
$18.3 million(1) in a Series A funding round, in addition to significantly
expanding its client base.
• In 2025, Mox continued its strong growth trajectory, achieving a robust
15 per cent year-on-year increase in customer base and reaching approximately
750,000 customers.
Mox continued to achieve strong performance, supported by an engaged customer
base, delivering 21 per cent year‑on‑year growth in deposits. Unsecured
loan balances grew 115 per cent year-on-year, benefitting from client
acquisition and deepening, and including the impact of an acquisition
of unsecured loans from Standard Chartered Hong Kong. Mox Card has been used
in nearly 157 million transactions to date and has rewarded a total of 1.8
billion Asia Miles to date. By the first half of 2025, Mox's market share had
reached 24 per cent (was ranked number 1) and 25 per cent (was ranked number
2) in lending and deposits respectively, among all Hong Kong digital banks.
Mox was recognised for its excellence by various global named agencies, such
as the Top 100 Digital Banks and was rated number one in Hong Kong in Neobank
Ranking 2025 by The Banker, Best Digital Bank in Hong Kong by the Asian
Banker and Digital Bank of the Year - Hong Kong by Asian Banking and Finance.
Mox has established a strong connection with Hong Kong customers since its
launch - the bank's app is currently the highest-rated digital banking app in
Hong Kong, achieving a score of 4.8 out of 5 in the Apple App Store.
In 2025 Mox launched Mox Insure, offering personal accident and travel
insurance products. Mox also expanded offerings such as personalised portfolio
investment under its digital wealth platform, Mox Invest, creating a strong
foundation for revenue diversification.
• Trust Bank continued its strong growth in 2025, with customer numbers up
15 per cent year-on-year reaching more than one million customers, taking its
share of the adult population in Singapore beyond 20 per cent.
The bank delivered robust financial performance with credit card spend
growing 39 per cent and unsecured loan balances rising 67 per cent
year-on-year, driven by new capabilities introduced over the past year. The
bank continued to strengthen the quality of its funding base, with about
one-third of total balances coming from customers who credit their salary to
their Trust savings account.
During 2025, Trust Bank was named Singapore's Best Digital Bank for Consumers
by Euromoney and the top mobile banking app for a digital bank globally by The
Digital Banker. The bank made strong progress on AI adoption, driving
productivity gains and enhanced customer experience.
In Q1 2025, Trust Bank launched its digital wealth platform, TrustInvest,
initially with a fund proposition. This was followed by a US stocks and ETFs
trading platform in Q4 2025 and creates a strong foundation for revenue
diversification.
Performance highlights
• Underlying loss before tax decreased by $218 million to $167 million,
primarily driven by higher income. Income rose by $232 million to $415
million, driven primarily by a $238 million gain from the Solv India
transaction.
• Operating expenses were flat as business growth was offset by Solv India
deconsolidation and efficiencies related to staff, marketing and vendor
costs.
• Credit impairment decreased by $14 million to $59 million, reflecting a
reduction in delinquencies in Mox, driven by continuous improvement in both
contractual and bankruptcy write-offs, partially offset by an increase in
Trust in line with the growth in the asset book.
• Ventures equity investments recognised $269 million gains, net of tax,
in the year, through fair value movements in other comprehensive income.
1 Includes SC Ventures investment in Series A of $1.4 million.
Page 26
Supplementary financial information continued
Central & other items
Q4'25 Q4'24(3,4) Change(1) Constant currency change(1,2) Q3'25 Change(1) Constant currency change(1,2) FY'25 FY'24(3,4) Change(1) Constant currency change(1,2)
$million $million % % $million % % $million $million % %
Treasury & Other(4) (99) (98) (1) (5) (114) 13 11 (379) (443) 14 18
Operating income (99) (98) (1) (5) (114) 13 11 (379) (443) 14 18
Operating expenses (211) (60) nm nm (42) nm nm (395) (247) (60) (57)
Operating loss before impairment losses and taxation (310) (158) (96) (94) (156) (99) (92) (774) (690) (12) (8)
Credit impairment (13) 4 nm nm (11) (18) (40) (18) 19 (195) (190)
Other impairment (5) (126) 96 97 2 nm nm (9) (168) 95 95
Profit/(loss) from associates and joint ventures (7) (21) 67 62 15 (147) (153) 110 67 64 64
Underlying loss before taxation (335) (301) (11) (9) (150) (123) (119) (691) (772) 10 14
Restructuring & Other items(5) 72 (47) nm nm (4) nm nm 48 (245) 120 120
Reported loss before taxation (263) (348) 24 26 (154) (71) (65) (643) (1,017) 37 39
Total assets 264,208 235,392 12 10 274,807 (4) (4) 264,208 235,392 12 10
Of which: loans and advances to customers(6) 14,453 21,324 (32) (36) 16,355 (12) (12) 14,453 21,324 (32) (36)
Total liabilities 110,785 95,326 16 15 109,343 1 1 110,785 95,326 16 15
Of which: customer accounts(7) 7,698 3,883 98 95 4,061 90 90 7,698 3,883 98 95
Risk-weighted assets 20,425 17,969 14 nm 21,186 (4) nm 20,425 17,969 14 nm
Income return on risk-weighted assets (%)(8) (1.8) (2.0) 20 nm (2.1) 30 nm (1.8) (2.0) 20 nm
Underlying return on tangible equity (%)(8) (15.4) (14.6) (80) nm (20.9) 550 nm (17.3) (15.7) (160) nm
Cost to income ratio (%)(9) nm nm nm nm nm nm nm nm nm nm nm
1 Variance is better/(worse), except for risk-weighted
assets, assets and liabilities which is increase/(decrease)
2 Comparisons presented on the basis of the current
period's transactional currency rate, ensuring like-for-like currency rates
between the two periods
3 Segment results have been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025
4 Products have been re-presented in line with the RNS on
Re-Presentation of Financial Information issued on 2 April 2025
5 Other items in 2025 include $113 million gain on sale of
office space and Cameroon and Gambia loss on business disposal $5 million each
6 Loans and advances to customers includes FVTPL
7 Customer accounts includes FVTPL
8 Change is the basis points (bps) difference between the
two periods rather than the percentage change
9 Change is the percentage points difference between the
two periods rather than the percentage change
Performance highlights
• Underlying loss before tax of $691 million lower by 14 per cent at
constant currency compared to prior year. This improvement was driven by a
reduction in operating losses, lower other impairment and higher profit from
associates and joint ventures, partially offset by higher operating expenses
and higher credit impairment.
• Underlying operating loss reduced by 18 per cent year-on-year to $379
million. The improvement is driven primarily by higher income from the
repricing of treasury assets, maturation of short-term hedges and lower
internal funding charges on capitalised software, premises and equipment,
partially offset by non-recurrence of the revaluation of FX positions in Egypt
and non-repeat of 2024 hyperinflationary accounting adjustments in Ghana of
$131 million.
Page 27
Supplementary financial information continued
Underlying performance by key market
2025
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 5,347 1,088 1,149 590 3,059 1,499 1,173 1,665 1,201 4,123 20,894
Operating expenses (2,429) (789) (804) (345) (1,784) (912) (650) (1,464) (628) (2,542) (12,347)
Operating profit/(loss) before impairment losses and taxation 2,918 299 345 245 1,275 587 523 201 573 1,581 8,547
Credit impairment (253) (66) (78) (22) (116) (42) 39 45 (71) (112) (676)
Other impairment (2) 1 (5) - (12) (3) - 4 (1) (24) (42)
Profit/(loss) from associates and joint ventures - - 114 - (5) - - (6) - (32) 71
Underlying profit/(loss) before taxation 2,663 234 376 223 1,142 542 562 244 501 1,413 7,900
Total assets employed 217,291 51,350 50,188 21,875 123,610 32,750 22,065 243,016 63,350 94,460 919,955
Of which: loans and advances to customers(3) 89,641 29,089 14,358 11,905 65,083 12,286 8,715 60,519 24,938 33,052 349,586
Total liabilities employed 218,190 44,055 43,435 19,203 113,762 24,736 20,467 244,932 52,605 83,984 865,369
Of which: customer accounts(3) 187,753 34,177 36,692 17,722 100,598 16,333 17,873 86,852 22,541 64,633 585,174
2024(1)
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 4,581 1,125 1,402 588 2,564 1,538 1,161 1,445 939 4,353 19,696
Operating expenses (2,296) (763) (796) (341) (1,557) (957) (553) (1,538) (532) (2,457) (11,790)
Operating profit/(loss) before impairment losses and taxation 2,285 362 606 247 1,007 581 608 (93) 407 1,896 7,906
Credit impairment (266) (54) (152) (38) (53) (37) 139 36 (1) (131) (557)
Other impairment (117) (1) (28) - (135) (72) (28) (130) (26) (51) (588)
Profit/(loss) from associates and joint ventures - - 67 - 5 - - (4) - (18) 50
Underlying profit/(loss) before taxation(1) 1,902 307 493 209 824 472 719 (191) 380 1,696 6,811
Total assets employed(2) 193,212 47,578 42,064 22,042 104,850 32,407 23,194 249,988 54,263 80,090 849,688
Of which: loans and advances to customers(3) 86,034 26,745 15,763 11,860 65,166 12,981 8,699 64,714 18,551 29,044 339,557
Total liabilities employed(2) 193,498 39,237 32,768 18,628 96,925 24,856 17,782 260,633 40,922 73,155 798,404
Of which: customer accounts(3) 166,420 28,703 27,853 17,252 86,250 18,601 14,872 90,473 16,066 56,773 523,263
1 Underlying profit before taxation has been re-presented
in line with the RNS on Re-Presentation of Financial Information issued on 2
April 2025
2 Balance sheet numbers have been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 reflecting change from management basis to financial basis
3 Loans and advances to customers includes FVTPL and
customer accounts includes FVTPL and repurchase agreements
Page 28
Supplementary financial information continued
Q4'25
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,352 247 188 137 663 354 248 395 286 978 4,848
Operating expenses (651) (218) (197) (89) (548) (244) (189) (447) (181) (665) (3,429)
Operating profit/(loss) before impairment losses and taxation 701 29 (9) 48 115 110 59 (52) 105 313 1,419
Credit impairment (16) (22) (7) (1) (35) (20) 14 (13) - (45) (145)
Other impairment - - - - (10) (1) - (1) (1) - (13)
Profit/(loss) from associates and joint ventures - - (5) - (4) - - (2) - (15) (26)
Underlying profit/(loss) before taxation 685 7 (21) 47 66 89 73 (68) 104 253 1,235
Total assets employed 217,291 51,350 50,188 21,875 123,610 32,750 22,065 243,016 63,350 94,460 919,955
Of which: loans and advances to customers(3) 89,641 29,089 14,358 11,905 65,083 12,286 8,715 60,519 24,938 33,052 349,586
Total liabilities employed 218,190 44,055 43,435 19,203 113,762 24,736 20,467 244,932 52,605 83,984 865,369
Of which: customer accounts(3) 187,753 34,177 36,692 17,722 100,598 16,333 17,873 86,852 22,541 64,633 585,174
Q4'24(1)
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,137 293 272 132 618 362 249 440 253 1,078 4,834
Operating expenses (686) (273) (144) (91) (441) (266) (157) (461) (124) (634) (3,277)
Operating profit/(loss) before impairment losses and taxation 451 20 128 41 177 96 92 (21) 129 444 1,557
Credit impairment (92) (7) (29) (11) (33) (12) 112 (6) (2) (50) (130)
Other impairment (58) - (12) - (98) (43) (9) (93) (12) (28) (353)
Profit/(loss) from associates and joint ventures - - (20) - 1 - - (1) - (7) (27)
Underlying profit/(loss) before taxation(1) 301 13 67 30 47 41 195 (121) 115 359 1,047
Total assets employed(2) 193,212 47,578 42,064 22,042 104,850 32,407 23,194 249,988 54,263 80,090 849,688
Of which: loans and advances to customers(3) 86,034 26,745 15,763 11,860 65,166 12,981 8,699 64,714 18,551 29,044 339,557
Total liabilities employed(2) 193,498 39,237 32,768 18,628 96,925 24,856 17,782 260,633 40,922 73,155 798,404
Of which: customer accounts(3) 166,420 28,703 27,853 17,252 86,250 18,601 14,872 90,473 16,066 56,773 523,263
1 Underlying profit before taxation has been re-presented
in line with the RNS on Re-Presentation of Financial Information issued on 2
April 2025
2 Balance sheet numbers have been re-presented in line
with the RNS on Re-Presentation of Financial Information issued on 2 April
2025 reflecting change from management basis to financial basis
3 Loans and advances to customers includes FVTPL and
customer accounts includes FVTPL and repurchase agreements
Page 29
Supplementary financial information continued
Quarterly underlying operating income by product
Q4'25 Q3'25 Q2'25 Q1'25 Q4'24(1) Q3'24(1) Q2'24(1) Q1'24(1)
$million
$million
$million
$million
$million
$million
$million
$million
Transaction Services 1,521 1,488 1,469 1,527 1,666 1,572 1,593 1,603
Payments & Liquidity 1,065 1,016 1,013 1,061 1,193 1,112 1,139 1,161
Securities & Prime Services 173 166 158 151 161 156 153 141
Trade & Working Capital 283 306 298 315 312 304 301 301
Global Banking 545 588 548 548 500 475 488 472
Lending & Financial Solutions 481 496 476 452 434 407 422 414
Capital Markets & Advisory 64 92 72 96 66 68 66 58
Global Markets 660 848 1,172 1,183 773 840 796 1,041
Macro Trading 499 678 961 978 654 683 631 884
Credit Trading 138 206 187 222 138 174 165 167
Valuation & Other Adj 23 (36) 24 (17) (19) (17) - (10)
Wealth Solutions 677 890 742 777 562 694 618 616
Investment Products 553 691 544 559 452 507 444 424
Bancassurance 124 199 198 218 110 187 174 192
Deposits & Mortgages 1,050 1,034 990 1,006 1,058 1,051 1,041 1,020
CCPL & Other Unsecured Lending 264 277 282 257 270 281 270 260
Ventures 56 39 278 42 60 43 48 32
Digital Banks 58 49 46 42 41 39 33 29
SCV (2) (10) 232 - 19 4 15 3
Treasury & Other 75 (17) 28 50 (55) (52) (48) 108
Total underlying operating income 4,848 5,147 5,509 5,390 4,834 4,904 4,806 5,152
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
Q4'25 Q4'24 Change Q3'25 Change FY'25 FY'24 Change
$million
$million
%
$million
%
$million
$million
%
Profit for the period attributable to equity holders 473 526 (10) 1,298 (64) 5,097 4,042 26
Non-controlling interest 3 (4) nm 2 50 (12) 8 nm
Dividend payable on preference shares and AT1 classified as equity (11) (29) 62 (272) 96 (527) (457) (15)
Profit for the period attributable to ordinary shareholders 465 493 (6) 1,028 (55) 4,558 3,593 27
Items normalised(1):
Restructuring 129 119 8 54 139 320 285 12
FFG 233 81 188 138 69 531 156 nm
DVA 9 3 200 27 (67) 31 24 29
Net loss on sale of businesses 5 44 (89) - nm 10 232 (96)
Other items 45 - nm - nm 45 100 (55)
Tax on normalised items (41) (36) (14) (39) (5) (135) (114) (18)
Underlying profit attributable to ordinary shareholders 845 704 20 1,208 (30) 5,360 4,276 25
Basic - Weighted average number of shares (millions) 2,274 2,436 nm 2,310 nm 2,333 2,543 nm
Diluted - Weighted average number of shares (millions) 2,351 2,509 nm 2,381 nm 2,404 2,610 nm
Basic earnings per ordinary share (cents) 20.4 20.2 0.2 44.5 (24.1) 195.4 141.3 54.1
Diluted earnings per ordinary share (cents) 19.8 19.6 0.2 43.2 (23.4) 189.6 137.7 51.9
Underlying basic earnings per ordinary share (cents) 37.2 28.9 8.3 52.3 (15.1) 229.7 168.1 61.6
Underlying diluted earnings per ordinary share (cents) 35.9 28.1 7.8 50.7 (14.8) 223.0 163.8 59.2
1 Refer Profit before taxation (PBT) table in underlying
versus reported results reconciliation
Page 30
Supplementary financial information continued
Return on Tangible Equity
Q4'25 Q4'24 Change Q3'25 Change FY'25 FY'24 Change
$million
$million
%
$million
%
$million
$million
%
Average parent company Shareholders' Equity 46,422 44,824 4 46,490 - 45,755 44,478 3
Less Average preference share capital and share premium (1,494) (1,494) - (1,494) - (1,494) (1,494) -
Less Average intangible assets (6,188) (6,035) (3) (6,118) (1) (6,019) (6,108) 1
Average Ordinary Shareholders' Tangible Equity 38,740 37,295 4 38,878 - 38,242 36,876 4
Profit for the period attributable to equity holders 473 526 (10) 1,298 (64) 5,097 4,042 26
Non-controlling interests 3 (4) nm 2 50 (12) 8 nm
Dividend payable on preference shares and AT1 classified as equity (11) (29) 62 (272) 96 (527) (457) (15)
Profit for the period attributable to ordinary shareholders 465 493 (6) 1,028 (55) 4,558 3,593 27
Items normalised(1):
Restructuring 129 119 8 54 139 320 285 12
FFG 233 81 188 138 69 531 156 nm
DVA 9 3 200 27 (67) 31 24 29
Ventures FVOCI unrealised gains net of tax 95 51 86 102 (7) 269 39 nm
Net loss on sale of businesses 5 44 (89) - nm 10 232 (96)
Other items 45 - nm - nm 45 100 (55)
Tax on normalised items (41) (36) (14) (39) (5) (135) (114) (18)
Underlying profit for the period attributable to ordinary shareholders 940 755 25 1,310 (28) 5,629 4,315 30
Underlying return on tangible equity 9.6% 8.1% 150bps 13.4% (380)bps 14.7% 11.7% 300bps
Reported return on tangible equity 4.8% 5.3% (50)bps 10.5% (570)bps 11.9% 9.7% 220bps
1 Refer Profit before taxation (PBT) table in underlying
versus reported results reconciliation
Net Tangible Asset Value per Share
31.12.25 31.12.24 Change 30.09.25 Change
$million
$million
%
$million
%
Parent company shareholders' equity 46,593 44,388 5 46,250 1
Less Preference share premium (1,494) (1,494) - (1,494) -
Less Intangible assets (6,231) (5,791) (8) (6,145) (1)
Net shareholders tangible equity 38,868 37,103 5 38,611 1
Ordinary shares in issue, excluding own shares (millions) 2,247 2,408 (7) 2,293 (2)
Net Tangible Asset Value per share (cents)(1) 1,730 1,541 189 1,684 46
1 Change is cents difference between the two periods
rather than percentage change
Page 31
Underlying versus reported results reconciliations
Reconciliations between underlying and reported results are set out in the
tables below
Operating income by client segment
2025 2024
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total Corporate & Investment Banking(1) Wealth & Retail Banking(1) Ventures Central & other items(1) Total
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Underlying versus reported:
Underlying operating income 12,394 8,464 415 (379) 20,894 11,935 8,021 183 (443) 19,696
Restructuring (14) 1 - (11) (24) 69 23 - 11 103
DVA (31) - - - (31) (24) - - - (24)
Other items(2,3) - - - 103 103 - - - (232) (232)
Reported operating income 12,349 8,465 415 (287) 20,942 11,980 8,044 183 (664) 19,543
Additional segmental income:
Net interest income 1,397 5,126 115 (683) 5,955 2,090 5,175 100 (999) 6,366
Net fees and commission income 2,091 2,192 61 (95) 4,249 1,938 1,855 52 (111) 3,734
Net trading and other income 8,861 1,147 239 491 10,738 7,952 1,014 31 446 9,443
Reported operating income 12,349 8,465 415 (287) 20,942 11,980 8,044 183 (664) 19,543
1 Segment results have been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025.
2 Other items 2024 include $172 million primarily relating
to recycling of FX translation losses from reserves into P&L on the sale
of Zimbabwe, $26 million loss on sale of Angola, $19 million loss on Sierra
Leone and $15 million loss on the Aviation business disposal.
3 Other items 2025 include $113 million gains on sale of office space
and $10 million loss on business disposal.
Net interest income and Non NII
2025 2024
Underlying Restructuring Adjustment for Trading book funding cost and Others Reported Underlying(1) Restructuring Adjustment for Trading book funding cost and Others(1) Reported
$million
$million
$million
$million
$million
$million
$million
$million
Net interest income 11,185 (1) (5,229) 5,955 11,096 16 (4,746) 6,366
Non NII 9,709 49 5,229 14,987 8,600 (169) 4,746 13,177
Total income 20,894 48 - 20,942 19,696 (153) - 19,543
1 Underlying net interest income has been re-presented in
line with the RNS on Re-Presentation of Financial Information issued on 2
April 2025 to reflect the reclassification of funding cost mismatches to
Underlying Non NII.
Profit before taxation (PBT)
2025
Underlying Restructuring FFG DVA Net loss on businesses disposed of/ held for sale Other items(1,2) Reported
$million
$million
$million $million $million $million $million
Operating income(1) 20,894 (24) - (31) (10) 113 20,942
Operating expenses(2) (12,347) (289) (510) - - (158) (13,304)
Operating profit/(loss) before impairment losses and taxation 8,547 (313) (510) (31) (10) (45) 7,638
Credit impairment (676) 4 - - - - (672)
Other impairment (42) (2) (21) - - - (65)
Profit from associates and joint ventures 71 (9) - - - - 62
Profit/(loss) before taxation 7,900 (320) (531) (31) (10) (45) 6,963
1 Other items 2025 operating income include gain on sale
of office space.
2 Other items 2025 operating expenses include a provision
relating to the Korea equity-linked securities and the settlement of a
litigation matter.
Page 32
Underlying versus reported results reconciliations continued
2024
Underlying Restructuring¹ FFG¹ DVA Net gain on businesses disposed of/ held for sale² Other items³ Reported
$million
$million
$million $million $million $million $million
Operating income 19,696 103 - (24) (232) - 19,543
Operating expenses (11,790) (456) (156) - - (100)³ (12,502)
Operating profit/(loss) before impairment losses and taxation 7,906 (353) (156) (24) (232) (100) 7,041
Credit impairment (557) 10 - - - - (547)
Other impairment (588) - - - - - (588)
Profit from associates and joint ventures 50 58 - - - - 108
Profit/(loss) before taxation 6,811 (285) (156) (24) (232) (100) 6,014
1 FFG (Fit for Growth) charge previously reported within
Restructuring has been re-presented as a separate item.
2 Net loss on businesses disposed of/ held for sale 2024
include $172 million primarily relating to recycling of FX translation losses
from reserves into P&L on the sale of Zimbabwe, $26 million loss on sale
of Angola, $19 million loss on Sierra Leone and $15 million loss on the
Aviation business disposal.
3 Other items 2024 include $100 million charge relating to
Korea equity-linked securities (ELS) portfolio.
Profit before taxation (PBT) by client segment
2025 2024¹
Corporate & Investment Banking Wealth & Retail Ventures Central & other Total Corporate & Investment Banking Wealth & Ventures Central & other Total
Banking
Retail
items
Banking items
$million $million $million $million $million $million $million $million $million $million
Operating income 12,394 8,464 415 (379) 20,894 11,935 8,021 183 (443) 19,696
External 11,718 3,619 416 5,141 20,894 10,480 3,533 184 5,499 19,696
Inter-segment 676 4,845 (1) (5,520) - 1,455 4,488 (1) (5,942) -
Operating expenses (6,509) (4,982) (461) (395) (12,347) (6,334) (4,749) (460) (247) (11,790)
Operating profit/(loss) before impairment losses and taxation 5,885 3,482 (46) (774) 8,547 5,601 3,272 (277) (690) 7,906
Credit impairment (4) (595) (59) (18) (676) 120 (623) (73) 19 (557)
Other impairment (6) (4) (23) (9) (42) (290) (112) (18) (168) (588)
Profit from associates and joint ventures - - (39) 110 71 - - (17) 67 50
Underlying profit/(loss) before taxation 5,875 2,883 (167) (691) 7,900 5,431 2,537 (385) (772) 6,811
Restructuring & Other items²,⁵ (525) (456) (4) 48 (937) (234) (315) (3) (245) (797)
Reported profit/(loss) before taxation 5,350 2,427 (171) (643) 6,963 5,197 2,222 (388) (1,017) 6,014
Total assets 516,923 130,489 8,335 264,208 919,955 485,680 122,357 6,259 235,392 849,688
Of which: loans and advances to customers 205,493 126,980 2,660 14,453 349,586 197,582 119,263 1,388 21,324 339,557
loans and advances to customers 142,698 126,978 2,659 14,453 286,788 139,063 119,257 1,388 21,324 281,032
loans held at fair value through profit or loss (FVTPL)³ 62,795 2 1 - 62,798 58,519 6 - - 58,525
Total liabilities 491,976 256,332 6,276 110,785 865,369 477,385 220,416 5,277 95,326 798,404
Of which: customer accounts⁴ 319,670 252,033 5,773 7,698 585,174 297,690 216,662 5,028 3,883 523,263
1 Segment results have been re-presented in line with the
RNS on Re-Presentation of Financial Information issued on 2 April 2025.
2 Other items 2025 include gains on sale of office space
and include a provision relating to the Korea equity-linked securities and the
settlement of a litigation matter. Other items 2024 include $100 million
charge relating to Korea equity-linked securities (ELS) portfolio, $172
million primarily relating to recycling of FX translation losses from reserves
into P&L on the sale of Zimbabwe, $26 million loss on sale of Angola, $19
million loss on Sierra Leone and $15 million loss on the Aviation business
disposal. Refer Restructuring, FFG (Fit for Growth), DVA and Other items table
in Finance review section.
3 Loans held at FVTPL includes $50,443 million (2024:
$51,441 million) of reverse repurchase agreements.
4 Customer accounts includes $19,414 million (2024:
$21,772 million) of FVTPL and $35,599 million (2024: $37,002 million) of
repurchase agreements.
5 Restructuring, FFG (Fit for Growth), DVA, Other items
have been combined and now disclosed as one line item i.e. "Restructuring and
Other items".
Page 33
Underlying versus reported results reconciliations continued
Return on tangible equity (RoTE)
2025 2024
$million $million
Average parent company shareholders' equity 45,755 44,478
Less: Average preference share capital and share premium (1,494) (1,494)
Less: Average intangible assets (6,019) (6,108)
Average ordinary shareholders' tangible equity 38,242 36,876
Profit for the year attributable to equity holders 5,097 4,042
Non-controlling interests (12) 8
Dividend payable on preference shares and AT1 classified as equity (527) (457)
Profit for the year attributable to ordinary shareholders 4,558 3,593
Items normalised(1):
Restructuring 320 285
FFG 531 156
DVA 31 24
Ventures FVOCI unrealised gains net of tax 269 39
Net loss on sale of businesses 10 232
Other items 45 100
Tax on normalised items (135) (114)
Underlying profit for the year attributable to ordinary shareholders 5,629 4,315
Underlying Return on Tangible Equity (%) 14.7 11.7
Reported Return on Tangible Equity (%) 11.9 9.7
1 Refer to note 2 Segmental information in the Annual
Report 2025
2025 2024
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Total Corporate & Investment Banking Wealth & Retail Banking Ventures Central & Total
other items other items
% % % % % % % % % %
Underlying RoTE 15.8 25.5 nm (17.3) 14.7 14.9 20.7 nm (15.7) 11.7
Restructuring¹
Of which: Income (0.1) - - (0.3) (0.1) 0.3 0.3 - 0.3 0.3
Of which: Expenses (1.8) (5.4) nm (0.9) (2.5) (1.5) (2.8) nm (0.4) (1.7)
Of which: Credit impairment - - - 0.1 - - - - - -
Of which: Other impairment - (0.1) - (0.3) (0.1) - - - (0.2) -
Of which: Profit from associates and joint ventures - - - - - 0.2 - nm - 0.2
DVA¹ (0.1) - - - (0.1) (0.1) - - - (0.1)
Net gain/(loss) on businesses disposed / held for sale¹ - - - (0.3) - - - - (5.4) (0.6)
Other items¹ - - - 3.1 0.3 - (1.2) - - (0.3)
Ventures FVOCI Unrealised gains / (losses) - - nm - (0.7) - - nm - (0.1)
Tax on normalised items 0.3 0.9 nm (0.6) 0.4 0.3 0.8 nm 0.1 0.3
Reported RoTE 14.1 20.9 nm (16.5) 11.9 14.1 17.8 nm (21.3) 9.7
1 Refer to note 2 Segmental information in the Annual
Report 2025
Page 34
Underlying versus reported results reconciliations continued
Net charge-off ratio
2025 2024
Credit impairment (charge)/ release for the year Net average exposure Net charge-off Credit impairment (charge)/ release for the year Net average exposure Net charge-off
$million
$million
Ratio
$million
$million
Ratio
%
%
Stage 1 41 314,590 (0.01) 22 314,092 (0.01)
Stage 2 (310) 11,871 2.61 (368) 10,176 3.62
Stage 3 (383) 2,266 16.90 (244) 2,550 9.57
Total exposure (652) 328,727 0.20 (590) 326,818 0.18
Earnings per ordinary share (EPS)
2025
Underlying Restructuring(1) FFG(1) DVA(1) Net loss Other items(1) Tax on normalised items Reported
on sale of businesses(1)
$ million $ million $ million $ million
$ million $ million $ million
$ million
Profit/(loss) for the year attributable to ordinary shareholders 5,360 (320) (531) (31) (10) (45) 135 4,558
Basic - Weighted average number of shares (millions) 2,333 2,333
Basic earnings per ordinary share (cents) 229.7 195.4
2024
Profit/(loss) for the year attributable to ordinary shareholders 4,276 (285) (156) (24) (232) (100) 114 3,593
Basic - Weighted average number of shares (millions) 2,543 2,543
Basic earnings per ordinary share (cents) 168.1 141.3
1 Refer to note 2 Segmental information in the Annual
Report 2025
Page 35
Group Chief Risk Officer's review
The Group's strong performance in 2025 is underpinned by our commitment to
effective risk management and a strong track record of managing risks during
periods of volatile macroeconomic and geopolitical conditions.
We proactively manage risk in a changing world.
Managing risk
2025 saw the emergence of a multipolar global economy, with recent
geopolitical shocks, industrial policy, and protectionist measures
accelerating fragmentation in trade, technology, and capital flows. Heightened
trade tensions from US tariffs were a focal point during the year, and
although this tapered in the second half, uncertainties remain. Constant
fluctuations in policy changes and escalating conflicts led to increased
economic uncertainty, market volatility and elevating refinancing risks across
emerging markets, among other factors. Throughout the year, we maintained a
proactive approach to risk management and remained anticipatory in addressing
emerging risks. We monitored the business through our well-established risk
frameworks and practices, such as stress tests and portfolio reviews,
highlighting any potential concentrations to be acted upon. We conducted
thorough assessments of trade linkages and identified vulnerable countries and
sectors. Beyond trade tensions, we closely monitored secondary impacts and
categorised country risks through our Country Risk Early Warning System. We
strengthened our stress-testing capabilities by increasing the number of
management stress tests conducted. The Group continues to monitor direct
exposures to countries involved in conflicts and the resultant secondary
effects. We also remain vigilant in managing risks from escalating conflicts
by continuously monitoring sovereign risks and scanning for topical and
emerging threats.
We are seeing an evolution in the exchange of value through new forms of
digital money via decentralised systems using distributed ledger technology
that offer an alternative to traditional payments. Financial institutions such
as digital-native banks as well as corporates are increasingly looking to
innovations such as stablecoins to take advantage of their potential benefits,
which include faster settlement, programmability and more efficient
cross-border payments.
Digital assets such as stablecoins bring about new risk vectors. As we
increase our digital assets activity across the Group, we remain focused on
understanding how these risks may materialise, and evolving our relevant risk
frameworks accordingly, and in compliance with relevant legislative and
regulatory regimes.
Banks are increasingly shifting from balance-sheet lenders to credit
intermediaries as private credit expands, reflecting regulatory constraints
and the growing role of non-bank capital. This evolution redistributes risks
beyond the banking sector, requiring enhanced oversight and underscoring
the value of disciplined credit underwriting.
Corporate & Investment Banking (CIB)
Corporate and Investment Banking (CIB) Our CIB credit portfolio remained
resilient amid volatile market conditions, with overall good asset quality as
evidenced by our largely investment-grade corporate portfolio (31 December
2025: 74 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 potential trade war escalation by conducting extensive stress
tests and portfolio reviews across vulnerable countries, sectors and clients.
While the risk of re-escalation in global tariffs has moderated, we continue
to update our assessments based on latest developments and take timely risk
mitigating actions as appropriate. Outside tariffs, we remain vigilant in
monitoring geopolitical risks, including conflicts in Ukraine and the Middle
East, and various US policy risks, and their impact across geographies,
commodity prices and clients, as well as sovereign risks across our global
footprint. The Group's exposure to data centres and private credit is subject
to defined portfolio limits, stringent underwriting standards, concentration
sub-caps and regular portfolio reviews. We continued to de-risk in China and
Hong Kong commercial real estate, and have limited exposures to US regional
banks and insurance companies.
Our CIB Traded Risk increased during 2025, as evidenced by the higher average
Value at Risk (VaR) (31 December 2025: trading $25.4 million and non-trading
$47.0 million; 31 December 2024: trading $21.1 million and non-trading $34.2
million). The higher non-trading VaR was driven by market volatility combined
with a VaR model enhancement to make the model more responsive to market
volatility and larger US agency bonds inventory in the CIB non-trading
portfolio. While elevated, the increased risk remained within risk appetite
(RA) 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. Velocity of assets in the
trading book is enforced via tight ageing limits. We remain vigilant and are
continuously enhancing our modelling and stress-testing capabilities
in anticipation of further market volatility.
Page 36
Group Chief Risk Officer's review continued
Wealth & Retail Banking (WRB)
The WRB credit portfolio continued to demonstrate resilience amid the
economic uncertainties and geopolitical challenges. 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. As a result of credit portfolio actions taken, we are seeing
signs of credit performance improvement. We remain focused on proactive risk
management across credit origination, portfolio management and collections to
manage the risks of a challenging and uncertain economic environment and
associated market volatility on the WRB portfolios. We are also refining our
portfolio strategy in our consumer unsecured lending and digital partnerships
portfolios to selectively reduce exposure and to drive better profitability.
Our end‑to‑end Credit Risk management actions are aligned for the
successful execution of the pivot to the 'affluent' segment. While the WRB
strategy leverages on the market-wide global growth in demand for wealth
management services, an essential component of our competitiveness will be
our risk management approach, which remains grounded in core principles and
our long-held market expertise while also adapting to new risks presented by
the dynamic global landscape.
Treasury Risk
Liquidity remained resilient across the Group and major legal entities (31
December 2025 liquidity coverage ratio (LCR): 155 per cent; 31 December 2024:
138 per cent) with a surplus to both RA and regulatory requirements. We are
focused on proactively managing our capital, Interest Rate Risk in the
Banking Book (IRRBB) and liquidity risks, including increasing our access to
contingent funding sources as appropriate, and enhancing our framework for
managing Treasury Risks in volatile market scenarios. The Group remains
well capitalised with CET1 ratio at 14.1 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).
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 that are mainly
aligned to the principal risk types (PRTs) and is embedded across the Group,
including its branches and subsidiaries(1).
The ERMF enables the Group to manage enterprise-wide risks, with the objective
of maximising risk-adjusted returns while remaining within our RA.
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 (RTFs) that are approved by the Group
Chief Risk Officer (GCRO). The table below details the Group's current PRTs,
definitions and our 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
operations, the risk of reductions in earnings or value from movements in support its operations, and an interest rate profile that ensures that the
interest rates impacting banking book items and the potential for losses from reductions in earnings or value from movements in interest rates impacting
a shortfall in the Group's pension plans. banking book items do not cause material damage to the Group's franchise. In
addition, the Group should ensure that its pension plans are adequately
funded.
Operational and Technology Risk Potential for loss resulting from inadequate or failed internal processes, The Group aims to mitigate and control Operational and Technology risks, to
technology events, human error, or from the impact of external events seek to ensure that events, including any related to conduct of business
(including legal risks). matters, do not cause the Group material harm as a result of business
disruption, financial loss or reputational damage.
Information and Cyber Security (ICS) 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, not cause the Group material harm, business disruption, financial loss or
or destruction of information assets and/or information systems. reputational damage, recognising that while incidents are unwanted, they
cannot be entirely avoided.
Page 37
Group Chief Risk Officer's review continued
Principal risk types Definition Risk appetite statement
Financial Crime Risk(2) 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 and Governance and Reputational (ESGR) Risk 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
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
misestimation 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.
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.
2 Fraud forms part of the Financial Crime RA Statement
but, in line with market practice, does not apply a zero-tolerance approach.
Topical and Emerging Risks
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 that may have the potential to
adversely impact our business.
As part of our risk identification process, we have updated our Topical and
Emerging Risks (TERs) from those disclosed in the 2025 Half Year 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 list of TERs is not exhaustive and there may be additional risks that
could have an adverse effect on the Group. Our mitigation approach for these
risks may not eliminate them but demonstrates our awareness and attempts 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, differently
integrated and generally more volatile 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 shifted from a rules-based international
order to a system driven by relative power dynamics. Fluid political and
economic alliances are evolving, with the landscape further complicated by
ongoing conflicts, e.g., in Ukraine and the Middle East.
In the near term, geopolitical fragmentation is also hampering collaboration
on key global challenges. The erosion of international rules and the
organisations that underpin them could undermine coordination efforts on
structural global issues, such as climate risk mitigation, or ad hoc
emergencies. The dismantling of some international development organisations
may also impact future cooperation efforts, including on combatting the
potential spread of future pandemics. These trends are prompting reform at
multinational institutions, albeit the pace is slow.
National interests are returning more visibly, with national security or
prosperity goals re-shaping engagement within and between countries. Domestic
political volatility is increasing across numerous markets. Internationally,
alliances are reorganising. Importantly, the US's use of tariffs to achieve
both economic and political goals, rollbacks of policy in areas such as
Environmental, Social, and Governance (ESG), and direct interventions in
global conflicts have all changed the macroeconomic and geopolitical
landscape. Some of these actions have caused fractures between the US
and traditional allies, leaving many long-standing bilaterial relationships
in a state of flux.
Page 38
Group Chief Risk Officer's review continued
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 is strengthened where they
are in strategic areas or involve the control of key resources.
The Group may be impacted by direct exposure to countries engaged in
conflicts, as well as by second-order effects on its clients and markets
such as agricultural commodities, oil and gas. The sanctions landscape is
also becoming increasingly complex, with potential divergence across regimes
requiring heightened awareness in running a compliant, global operation.
The malicious use of AI-enabled disinformation could further undermine trust
in the political process. Terrorism and cyber warfare are also ongoing
threats, with unpredictability exacerbated by the wider range of ideologies at
play and enhanced capabilities to disrupt infrastructure in rival countries.
Macroeconomic uncertainty including potential price bubbles
While many tariff deals have been struck between the US and the rest of the
world, the average global tariff level has increased significantly relative to
a year ago. The potential for change remains, with the US administration
applying additional tariffs in response to non-economic issues or to achieve
leverage in other areas.
Despite this, global trade has broadly readjusted and financial markets have
not been adversely impacted. The relative alignment between the US and China
is a major factor. However, dislocation risks persist, and headwinds are
brewing in export-reliant locations such as South East Asia. Friction has also
been seen around the export of rare earth metals from China. Potential
uncertainty has driven a 'debasement trade' shift to hard assets, with the
price of gold increasing by 65 per cent in 2025.
Although the interest rate cut cycle has begun, the short-term trajectory
remains uncertain. Tariffs, supply chain disruption, strong labour markets and
higher deficits could be inflationary, leading to higher rates. In contrast,
aggressive cuts could further fuel inflation. Developed markets have
diminished fiscal flexibility to react due to their high debt levels and
social burdens. There are growing concerns in Europe, where fiscal weakness
in France and government instability in Germany threaten to undermine the
European Union's strongest members and the integrity of the bloc. Volatile
interest rates could also impact the Group's net interest income outlook.
The global landscape remains challenging for businesses, with structural
spending still a risk while volatility remains. As other cost pressures such
as the ESG transition or keeping up with technological advances build,
companies may start to feel a squeeze, especially if interest rates do not
fall as rapidly as expected.
Tariff volatility, policy unpredictability and uncertainty over the continued
independence of the Fed could impact investor perceptions of risk-free assets
across global markets, and encourage a gradual and steady diversification. In
an extreme case, the rest of the world could reduce trade with the US, which
could result in further weakening of the US dollar, challenging its status as
the global reserve currency, or risk premia on traditionally risk-free assets
such as US Treasuries. However, these are unlikely to materialise in the short
term.
One potential headwind for global markets could be a downturn caused by the
bursting of the perceived AI bubble, with valuations of key players and
significant investment from private credit players in the sector drawing some
concern. A correction would have implications to the broader economy, with
sectors such as energy, construction and commercial real estate all highly
dependent on AI infrastructure growth, particularly data centres. Conversely,
the AI race is fueling growth in demand for semiconductor chips, whose
availability and price are becoming a concern. Concentration risk in sectors
with an AI or semiconductor nexus needs to be monitored.
The private credit sector is also under greater scrutiny, with concerns over
default rates and increasing connectedness with traditional banks and the
insurance industry. Lack of regulation or transparency, and lower underwriting
standards all heighten inherent risks and make the segment more susceptible to
downturns and other threats such as fraud.
While idiosyncratic risks remain, emerging markets are generally seeing
improved sentiment as debt restructurings have progressed and acute sovereign
default risks have receded in certain presence markets. Multilateral support
mechanisms, alongside bilateral funding, have helped to shore up external
positions in several emerging markets. Trends such as de-dollarisation and
disintermediation through alternative payment channels may have a larger
impact in emerging markets, and how credit risk is managed in such centres.
Supply chain issues and key material shortages
Geopolitical volatility, shifts towards protectionism, and ongoing conflicts
have complicated the operation of global supply chains. Countries are
'de-risking' through diversifying their supply chains. This includes tactics
such as reducing reliance on rivals or concentrated suppliers, looking to
either re-industrialise or make use of near-shoring and friend-shoring
production, and forming entirely new relationships.
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.
However, AI applications could provide additional supply chain robustness, as
inefficiencies are reduced by predictive analytics around supply and demand,
weather patterns and maintenance requirements.
How these risks are mitigated
• We conduct portfolio reviews and stress tests at Group, country,
business and asset class level, with regular reviews of vulnerable sectors.
• We have a structural hedging programme to mitigate the impact of
volatile interest rates.
• We run daily market risk stress scenarios to assess the impact of
unlikely but plausible market shocks.
Page 39
Group Chief Risk Officer's review continued
• We run a suite of management scenarios with differing severities to
assess their impact on key RA metrics.
• We have a dedicated country risk team that closely monitors sovereign
risk.
• We maintain a diversified portfolio across products and geographies,
with specific RA metrics to monitor concentrations.
• Increased scrutiny is applied when onboarding clients in sensitive
industries and ensuring compliance with sanctions.
• We maintain underwriting principles for specialised product and industry
segments, detailing transaction-level origination standards and sub-segment
caps supported by regular portfolio reviews.
• We regularly review our supply chains and third-party arrangements to
improve operational resilience.
• We actively review and test our crisis management and business
continuity plans.
ESG considerations
Evolving ESG dynamics
Stakeholder scrutiny on ESG commitments and practices continues. Regulators
are implementing standards, reporting requirements and timelines that can vary
significantly, leading to further complexity in ensuring compliance across
different jurisdictions.
Greenwashing risk remains heightened, with both regulator and non-governmental
organisation scrutiny on market integrity. The Group maintains its external
commitments to achieve net zero targets and mobilise sustainable financing
amid shifting global attitudes.
Economic pressures and geopolitical tensions such as increased tariffs may
push companies to consider deprioritising their climate transition. In
addition, the cost of managing the climate impacts from more frequent extreme
weather events is increasing, with the burden disproportionately borne by
developing markets, which in turn lowers their ability to invest in transition
infrastructure.
Frontier technologies such as quantum computing and AI may also come with
substantial energy and water demands. These need to be understood,
particularly the impact on companies' ability to deliver against
sustainability targets.
Environmental risks such as loss of biodiversity pose incremental challenges
to food, health systems and energy security. Modern slavery and human rights
concerns are increasingly in focus, expanding beyond direct operations
to extended supply chains.
How these risks are mitigated
• Climate Risk considerations are embedded across relevant principal risk
types. We perform client-level Climate Risk assessments and set adequate
mitigants or controls where relevant.
• We have delivered on our commitment to be net zero in our own operations
(Scope 1 and 2 emissions) by the end of 2025 and intend to maintain this going
forward.
• We embed our values through our Position Statements and a list of
prohibited activities. We also maintain ESGR standards to identify, assess and
manage risks when providing services to clients.
• Management of greenwashing risks is integrated into our ESGR RTF, ESGR
policies, Sustainable Finance Frameworks, and relevant product and marketing
standards.
• Detailed portfolio reviews and stress tests are conducted to assess the
resilience of our clients and operations to climate-related physical and
transition risks.
• Suppliers(1) that are identified as presenting higher risks of modern
slavery are subject to a risk assessment.
New business structures, channels and competition
Competitive disruption
Sources of disruption and disintermediation to traditional finance are
increasing, with more established fintech and private credit sectors being
joined by increasing use cases for digital assets. Stablecoins could provide
alternative payment and deposit channels, with adoption expected to be most
prevalent in emerging markets where local currencies are highly volatile. This
could lead to deposit outflows from traditional banking products.
While there is increasing regulatory scrutiny on alternative financing
providers, such as the Bank of England's proposed stress test for the private
credit market, there is still a governance gap that could put banks at a
competitive disadvantage.
Financiers that can harness technology can rapidly improve their market share,
as the concept of a hyper-personalised 'segment of one' is increasing in
prominence, and may change marketing, client service and distribution
channels.
The proactive management of the impact of AI and more nascent technologies
such as quantum computing may lead to sunk costs into projects that are
ultimately not required or do not become part of daily operations.
1 By suppliers we are referring to external third parties
(vendors) that have a commercial arrangement with the Group for the provision
of goods and/or services. Examples of suppliers include landlords, management
consultants, and IT service providers.
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Group Chief Risk Officer's review continued
Rapid adoption of AI
The expansion of AI capabilities is increasingly pervasive and pivotal to
business operations across industries. Traditional finance faces adoption
challenges in complying with existing regulation and governance standards.
Cost pressures and lack of key skills in the industry could hamper a swift
transition.
The increased use of partnerships with specialist tech providers is
operationally efficient, although it increases third-party and model risks and
requires enhanced due diligence to ensure secure adoption.
The integration of more sophisticated insights utilising big data and AI could
enhance the services offered to clients. However, if such capabilities are
widely available it may impact banks' ability to differentiate. AI also has
implications on broader considerations such as the ethical use of data and
protecting privacy and security, and the increase in 'shadow AI' or the use of
unauthorised AI channels or tools.
There has been a large increase in the use of AI in fraud, scams and spreading
misinformation. AI powered deepfakes and autonomously generated malware are
changing the nature of cyber threats, in particular increasing the speed of
attack. However, the availability and maturity of security and controls
continues to lag development of the technology itself.
There are also potential societal and economic impacts from replacement of
jobs, which may be concentrated in some sub-sectors and disproportionately
impact junior positions and youth entering the workforce. Leveraging the
benefits of augmented AI while managing these risks will be a core part of
the Group's business model.
Cyber, data and operational resilience
An expanding digital footprint and integration of smarter AI systems
increases inherent cyber and operational risk, with more opportunities for
cybercriminals to gain entry or access to corporate assets, including
infrastructure such as cloud and third-party enabled services. These threats
extend to our clients, with the Group at risk of financial loss if they are
materially affected.
Reliance on third parties for critical processes is an increasing regulatory
focus and can introduce significant risks if these third parties fail to
deliver or face operational issues. As supply chains become more complex and
digital, security risks are shifting down to 4th and nth party. This
increased interconnectedness is likely to further reduce the tolerance
for errors and outages.
Ongoing geopolitical tensions increase the risk of conflict spilling into the
cyber domain, including cyber risks from nation-state actors seeking to
disrupt operations, access sensitive information, or gain strategic advantage.
The scale and sophistication of threats continues to increase, with ransomware
a persistent concern. The barriers to entry for attacks is reducing, and
malicious actors are embracing new wave technology with increased potency,
such as AI. In the longer term, advances in quantum computing could threaten
encryption, one of the core aspects of security, which will necessitate a
complex global transition to enhance data architecture. There are
also growing data sovereignty requirements to localise data, systems and
operations, with data increasingly recognised as being at the centre
of global trade.
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 and reduce the risk of obsolescence.
How these risks are mitigated
• We continuously monitor and evaluate emerging technology trends,
business models and opportunities.
• We have enhanced governance for evolving areas, such as the Digital
Asset Risk Committee.
• We have instituted an AI Safety Council which evaluates and assesses AI
solutions prior to use.
• We apply a tiered approach to evaluate AI systems, proportionate to the
associated risks.
• We are partnering with central banks and other stakeholders on digital
currency and stablecoin projects around the world.
• We manage data and information security risks through our Compliance and
Information and Cyber Security (ICS) RTFs. We maintain a global Group Data
Conduct Policy.
• The Group continues to invest in its resilience capabilities, with a
focus on regulatory compliance, as well as ensuring the continued operational
stability of the Bank.
• The Group is focused on uplifting its global data centre footprint,
enhancing technology to reduce obsolescence, assuring its use of third parties
and building response and recovery capabilities.
• We prioritise security and robust testing in the design of our products
and services, including implementing encryption, phishing resistance and
stringent access controls to safeguard user data.
• The Group has implemented a 'defence-in-depth' ICS control environment
strategy to protect, detect and respond to known and emerging ICS threats.
• We upskill colleagues on the human aspect of ICS risk, underpinned by
our colleague Code of Conduct and Ethics. We also assign mandatory ICS
learning, phishing exercises and role-specific training.
• The Group's Incident Response processes include 24/7 security event
monitoring, triage and analysis.
• New risks are identified through the New Initiatives Risk Assessment and
Third-Party Risk Management policy and standards.
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Group Chief Risk Officer's review continued
• We identify security threats to third parties and deliver threat
intelligence and briefings to strategic clients to enhance our service and
relationships.
• We have initiated a post quantum cryptography programme to manage the
bank-wide transition to post-quantum encryption standards.
• We test the effectiveness of our crisis management and continuity
strategies through a series of severe but plausible disruption scenarios.
• We have implemented pan-bank stress testing for our important business
services to ensure vulnerabilities are effectively identified and remediated.
• We have improved operational resilience monitoring capabilities to
identify potential vulnerabilities quickly and put in place necessary
remediations and controls.
Regulatory considerations
Regulatory evolution and fragmentation
Amid other changes in regulation, we are seeing a rise in consultations
relating to digital assets, with potential inconsistent standards across
jurisdictions raising risks around legal enforceability, ownership and
capital treatment. There is also greater regulatory interest in the use of AI
and its ethical application in decision-making. As technologies get more
complex, we also see increased focus on consumer protection, particularly with
ageing populations and a rise in populist agendas.
In many Western jurisdictions, competitiveness and growth are becoming more
pressing issues for regulatory authorities. Such policymaking comes at a
natural tension with resilience considerations, as seen in the divergence in
timing and approach of Basel 3.1 adoption across the US, UK and some Asian
markets. Other areas of divergence include ESG regulation, and
extraterritorial and localisation requirements, including data sovereignty.
While some deregulation can be beneficial, an uncoordinated global regime
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.
• We remain focussed on protecting consumers by proactively identifying
and mitigating risks such as scams, phishing and impersonation
Demographic considerations
Skills and the competition for talent
Evolving client expectations and rapid technological development 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 effectively.
Workforce expectations also continue to evolve, with health, wellbeing and
purpose becoming top focuses for talent attraction. Maintaining an EVP that
caters for multiple generations with differing priorities is a key challenge
in building 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 employees. The role of people leaders
will continue to evolve to enable the right balance for both individuals and
teams.
Demographic and migration trends
Developed markets' budgets will be increasingly strained by ageing
populations, and nationalistic policies on issues such as immigration could
exacerbate the problem. Conversely, emerging markets are experiencing
fast-growing, younger workforces. Population growth will put pressure on key
resources to fully capitalise on the 'demographic dividend'. Existing fiscal
and social vulnerabilities may also hinder emerging markets' ability to
turbocharge their growth.
Population displacement is rising, which may increase the fragility of
societal structures in vulnerable centres. Large scale movement could cause
social unrest and accelerate the spread of future pandemics. The ability to
react to such external scenarios may be diminished due to broader declines in
international institutions and reduced global cooperation.
Societal unrest continues to increase, and the threat of terrorist activity
and political violence has also heightened over the past 12 months.
Net population growth for the 21st century will be in less-developed
countries. Proactively planning for these demographic shifts will be essential
in maintaining an efficient global business model.
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Group Chief Risk Officer's review continued
How these risks are mitigated
• Our People Strategy builds a future-ready, multi‑generational
workforce through structured re-skilling and mobility programmes; this enables
prompt redeployment as roles evolve, and also mitigates the demographic risks
of shrinking and ageing populations.
• 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 employees
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.
Jason Forrester
Group Chief Risk Officer
24 February 2026
Page 43
Risk review
Loans and advances by client segment (audited)
Amortised cost 2025
Banks Customers Undrawn commitments Financial Guarantees
$million $million $million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Customer Total
$million $million $million $million $million
Stage 1 43,608 132,772 124,657 2,649 14,984 275,062 195,032 112,091
• Strong 31,257 94,399 119,351 2,628 14,228 230,606 176,123 67,184
• Satisfactory 12,351 38,373 5,306 21 756 44,456 18,909 44,907
Stage 2 217 7,859 1,903 61 - 9,823 4,208 1,511
• Strong 42 1,767 1,414 39 - 3,220 1,340 351
• Satisfactory 172 4,984 154 8 - 5,146 2,662 1,052
• Higher risk 3 1,108 335 14 - 1,457 206 108
Of which (stage 2):
• Less than 30 days past due - 86 154 8 - 248 - -
• More than 30 days past due 3 158 335 14 - 507 - -
Stage 3, credit-impaired financial assets 90 4,201 1,723 38 2 5,964 5 591
Gross balance(1) 43,915 144,832 128,283 2,748 14,986 290,849 199,245 114,193
Stage 1 (6) (128) (346) (42) (12) (528) (49) (26)
• Strong (2) (59) (304) (39) (12) (414) (28) (12)
• Satisfactory (4) (69) (42) (3) - (114) (21) (14)
Stage 2 (1) (310) (114) (22) - (446) (33) (16)
• Strong (1) (4) (79) (13) - (96) (4) -
• Satisfactory - (217) (12) (3) - (232) (20) (9)
• Higher risk - (89) (23) (6) - (118) (9) (7)
Of which (stage 2):
• Less than 30 days past due - (9) (12) (3) - (24) - -
• More than 30 days past due - (1) (23) (6) - (30) - -
Stage 3, credit-impaired financial assets (7) (2,214) (846) (25) (2) (3,087) (2) (98)
Total credit impairment (14) (2,652) (1,306) (89) (14) (4,061) (84) (140)
Net carrying value 43,901 142,180 126,977 2,659 14,972 286,788
Stage 1 0.0% 0.1% 0.3% 1.6% 0.1% 0.2% 0.0% 0.0%
• Strong 0.0% 0.1% 0.3% 1.5% 0.1% 0.2% 0.0% 0.0%
• Satisfactory 0.0% 0.2% 0.8% 14.3% 0.0% 0.3% 0.1% 0.0%
Stage 2 0.5% 3.9% 6.0% 36.1% 0.0% 4.5% 0.8% 1.1%
• Strong 2.4% 0.2% 5.6% 33.3% 0.0% 3.0% 0.3% 0.0%
• Satisfactory 0.0% 4.4% 7.8% 37.5% 0.0% 4.5% 0.8% 0.9%
• Higher risk 0.0% 8.0% 6.9% 42.9% 0.0% 8.1% 4.4% 6.5%
Of which (stage 2):
• Less than 30 days past due 0.0% 10.5% 7.8% 37.5% 0.0% 9.7% 0.0% 0.0%
• More than 30 days past due 0.0% 0.6% 6.9% 42.9% 0.0% 5.9% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 7.8% 52.7% 49.1% 65.8% 100.0% 51.8% 40.0% 16.6%
• Stage 3 Collateral - 314 678 - - 992 - 56
• Stage 3 Cover ratio (after collateral) 7.8% 60.2% 88.5% 65.8% 100.0% 68.4% 40.0% 26.1%
Cover ratio 0.0% 1.8% 1.0% 3.2% 0.1% 1.4% 0.0% 0.1%
Fair value through profit or loss
Performing 36,581 62,781 2 1 - 62,784 - -
• Strong 28,278 39,352 2 1 - 39,355 - -
• Satisfactory 8,303 23,429 - - - 23,429 - -
• Higher risk - - - - - - - -
Impaired (CG13-14) 92 14 - - - 14 - -
Gross balance (FVTPL)(2) 36,673 62,795 2 1 - 62,798 - -
Net carrying value (incl FVTPL) 80,574 204,975 126,979 2,660 14,972 349,586 - -
1 Loans and advances includes reverse repurchase
agreements and other similar secured lending of $8,242 million under Customers
and of $3,724 million under Banks, held at amortised cost.
2 Loans and advances includes reverse repurchase
agreements and other similar secured lending of $50,443 million under
Customers and of $33,689 million under Banks, held at fair value through
profit or loss.
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Risk review continued
Amortised cost 2024
Banks Customers Undrawn commitments Financial Guarantees
$million $million $million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Customer Total
$million $million $million $million $million
Stage 1 43,208 128,746 117,015 1,383 21,958 269,102 178,516 87,991
• Strong 31,239 90,725 111,706 1,367 21,540 225,338 162,574 56,070
• Satisfactory 11,969 38,021 5,309 16 418 43,764 15,942 31,921
Stage 2 318 8,643 1,905 48 35 10,631 4,006 2,038
• Strong 8 1,229 1,413 31 - 2,673 994 471
• Satisfactory 125 6,665 155 6 - 6,826 2,862 1,403
• Higher risk 185 749 337 11 35 1,132 150 164
Of which (stage 2):
• Less than 30 days past due - 55 155 6 - 216 - -
• More than 30 days past due 2 7 337 11 - 355 - -
Stage 3, credit-impaired financial assets 83 4,476 1,617 12 98 6,203 7 603
Gross balance(1) 43,609 141,865 120,537 1,443 22,091 285,936 182,529 90,632
Stage 1 (10) (80) (383) (20) - (483) (50) (16)
• Strong (7) (28) (325) (18) - (371) (33) (7)
• Satisfactory (3) (52) (58) (2) - (112) (17) (9)
Stage 2 (1) (303) (147) (23) - (473) (52) (7)
• Strong - (41) (70) (14) - (125) (10) -
• Satisfactory (1) (218) (32) (3) - (253) (32) (4)
• Higher risk - (44) (45) (6) - (95) (10) (3)
Of which (stage 2):
• Less than 30 days past due - (1) (32) (3) - (36) - -
• More than 30 days past due - - (45) (6) - (51) - -
Stage 3, credit-impaired financial assets (5) (3,178) (759) (11) - (3,948) (1) (129)
Total credit impairment (16) (3,561) (1,289) (54) - (4,904) (103) (152)
Net carrying value 43,593 138,304 119,248 1,389 22,091 281,032 - -
Stage 1 0.0% 0.1% 0.3% 1.4% 0.0% 0.2% 0.0% 0.0%
• Strong 0.0% 0.0% 0.3% 1.3% 0.0% 0.2% 0.0% 0.0%
• Satisfactory 0.0% 0.1% 1.1% 12.5% 0.0% 0.3% 0.1% 0.0%
Stage 2 0.3% 3.6% 7.7% 47.9% 0.0% 4.4% 1.3% 0.3%
• Strong 0.0% 3.3% 5.0% 45.2% 0.0% 4.7% 1.0% 0.0%
• Satisfactory 0.8% 3.3% 20.6% 50.0% 0.0% 3.7% 1.1% 0.3%
• Higher risk 0.0% 5.9% 13.4% 54.5% 0.0% 8.4% 6.7% 1.8%
Of which (stage 2):
• Less than 30 days past due 0.0% 1.8% 20.6% 50.0% 0.0% 16.7% 0.0% 0.0%
• More than 30 days past due 0.0% 0.0% 13.4% 54.5% 0.0% 14.4% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 6.0% 71.0% 46.9% 91.7% 0.0% 63.6% 14.3% 21.4%
• Stage 3 Collateral 1 297 584 - - 881 - 46
• Stage 3 Cover ratio (after collateral) 7.2% 77.6% 83.1% 91.7% 0.0% 77.8% 14.3% 29.0%
Cover ratio 0.0% 2.5% 1.1% 3.7% 0.0% 1.7% 0.1% 0.2%
Fair value through profit or loss
Performing 36,967 58,506 6 - - 58,512 - -
• Strong 30,799 38,084 3 - - 38,087 - -
• Satisfactory 6,158 20,314 3 - - 20,317 - -
• Higher risk 10 108 - - - 108 - -
Impaired (CG13-14) - 13 - - - 13 - -
Gross balance (FVTPL)(2) 36,967 58,519 6 - - 58,525 - -
Net carrying value (incl FVTPL) 80,560 196,823 119,254 1,389 22,091 339,557 - -
1 Loans and advances includes reverse repurchase
agreements and other similar secured lending of $9,660 million under Customers
and of $2,946 million under Banks, held at amortised cost.
2 Loans and advances includes reverse repurchase
agreements and other similar secured lending of $51,441 million under
Customers and of $34,754 million under Banks, held at fair value through
profit or loss.
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Risk review continued
Credit impairment charge (audited)
The table below analyses credit impairment charges or releases of the ongoing
business portfolio and restructuring business portfolio for the year ended 31
December 2025.
2025 2024(1)
Stage 1 & 2 Stage 3 Total Stage 1 & 2 Stage 3 Total
$million $million $million $million $million $million
Ongoing business portfolio
Corporate and Investment Banking 121 (117) 4 78 (198) (120)
Wealth and Retail Banking 159 436 595 301 322 623
Ventures (2) 61 59 10 63 73
Central & other items 18 - 18 (18) (1) (19)
Credit impairment charge/(release) 296 380 676 371 186 557
Restructuring business portfolio
Others (3) (1) (4) 1 (11) (10)
Credit impairment charge/(release) (3) (1) (4) 1 (11) (10)
Total credit impairment charge 293 379 672 372 175 547
1 Business segments have been re-presented in line with
the RNS on Re-Presentation of Financial Information issued on 2 April 2025,
with no change in total credit impairment charge.
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Risk review continued
Maximum exposure
2025
Maximum on Balance Sheet Exposure Collateral Net On Balance Sheet Exposure Undrawn Commitments Financial Guarantees Net Off Balance Sheet Exposure Total On & Off Balance Sheet Net Exposure
(net of credit impairment)
$million $million (net of credit impairment) (net of credit impairment) $million $million
$million
$million $million
Industry:
Automotive manufacturers 4,409 412 3,997 4,712 730 5,442 9,439
Aviation 2,010 1,176 834 1,206 820 2,026 2,860
Steel 1,767 296 1,471 834 237 1,071 2,542
Coal Mining 2 1 1 - 8 8 9
Aluminium 875 39 836 371 93 464 1,300
Cement 781 52 729 693 264 957 1,686
Shipping 6,861 4,300 2,561 2,183 180 2,363 4,924
Commercial Real Estate 9,397 4,406 4,991 3,050 188 3,238 8,229
Oil & Gas 9,462 992 8,470 12,257 8,314 20,571 29,041
Power 7,585 1,180 6,405 6,138 1,548 7,686 14,091
Total(1,5) 43,149 12,854 30,295 31,444 12,382 43,826 74,121
Total Corporate & Investment Banking(2) 204,973 27,925 177,048 135,410 105,414 240,824 417,872
Total Group(3,4) 430,157 137,977 292,180 208,841 114,053 322,894 615,074
2024
Industry:
Automotive manufacturers 3,881 69 3,812 3,331 605 3,936 7,748
Aviation 1,829 960 869 842 928 1,770 2,639
Steel 1,526 316 1,210 816 325 1,141 2,351
Coal Mining 25 - 25 - - - 25
Aluminium 1,341 32 1,309 354 53 407 1,716
Cement 709 55 654 637 267 904 1,558
Shipping 7,038 5,037 2,001 2,176 397 2,573 4,574
Commercial Real Estate 7,635 3,400 4,235 2,758 684 3,442 7,677
Oil & Gas 7,421 988 6,433 7,928 7,079 15,007 21,440
Power 6,341 1,500 4,841 4,538 1,124 5,662 10,503
Total(1) 37,746 12,357 25,389 23,380 11,462 34,842 60,231
Total Corporate & Investment Banking(2) 196,823 32,152 164,671 118,106 81,132 199,238 363,909
Total Group(3,4) 420,117 121,993 298,124 193,115 90,602 283,717 581,841
1 Maximum on balance sheet exposure includes FVTPL amount
of High Carbon sector is $2,202 million (31 December 2024: $749 million).
2 Includes on balance sheet FVTPL amount of $62,795
million (31 December 2024: $ 58,519 million) for Corporate & Investment
Banking loans to customers.
3 Total Group includes net loans and advances to banks and
net loans and advances to customers held at amortised cost of $43,901 million
(31 December 2024: $43,593 million) and $286,788 million (31 December 2024: $
281,032 million) respectively and loans to banks and loans and advances to
customers held at FVTPL of $36,673 million (31 December 2024: $ 36,967
million) and $62,798 million (31 December 2024: $ 58,525 million)
respectively. Refer to Loans and advances by client segment table.
4 Agriculture is a further sector for which the Group set
a net zero target in 2025 (see net zero section). The value chain in scope for
this sector incorporates from pre-farm production (fertiliser) to post-farm
processing (food traders, processors and wholesales). The total outstanding
loan exposure to this sector is $11,239 million (31 December 2024: $11,866m)
with financial guarantees of $1,908 million (31 December 2024: $2,177m) and
undrawn commitments of $10,977 million (31 December 2024:$8,796m) Whilst there
is a net zero target on this sector and transition risk is a consideration,
the sector is not considered a traditional high carbon sector as not linked to
heavy industry and the consumption of energy.
5 The ratio of total high carbon sector lending to the
Group's total assets is 5.9 % (31 December 2024: 5.8%), which is the high
carbon sector and agriculture sector balances over the total Group balance
sheet.
Page 47
Capital review
Capital ratios
31.12.25 30.09.25 Change(2) 30.06.25 Change(2) 31.12.24 Change(2)
CET1 14.1% 14.2% (4)bps 14.3% (23)bps 14.2% (12)bps
Tier 1 capital 17.0% 16.7% 35bps 16.9% 17bps 16.9% 17bps
Total capital 20.6% 20.3% 30bps 20.5% 11bps 21.5% (86)bps
Capital base(1) (audited)
31.12.25 30.09.25 Change(3) 30.06.25 Change(3) 31.12.24 Change(3)
$million
$million
%
$million
%
$million
%
CET1 capital instruments and reserves
Capital instruments and the related share premium accounts 5,120 5,135 - 5,154 (1) 5,201 (2)
Of which: share premium accounts 3,989 3,989 - 3,989 - 3,989 -
Retained earnings 24,528 24,887 (1) 26,692 (8) 24,950 (2)
Accumulated other comprehensive income (and other reserves) 10,406 10,180 2 10,099 3 8,724 19
Non-controlling interests (amount allowed in consolidated CET1) 262 208 26 234 12 235 11
Independently audited year-end profits 5,100 4,642 10 3,341 53 4,072 25
Foreseeable dividends (1,377) (802) (72) (570) (142) (923) (49)
CET1 capital before regulatory adjustments 44,039 44,250 - 44,950 (2) 42,259 4
CET1 regulatory adjustments
Additional value adjustments (prudential valuation adjustments) (693) (727) 5 (660) (5) (624) (11)
Intangible assets (net of related tax liability) (6,145) (6,048) (2) (5,995) (3) (5,696) (8)
Deferred tax assets that rely on future profitability (excludes those arising (15) (13) (15) (18) 17 (31) 52
from temporary differences)
Fair value reserves related to net losses on cash flow hedges (315) (361) 13 (378) 17 (4) (7,775)
Deduction of amounts resulting from the calculation of excess expected loss (599) (579) (3) (617) 3 (702) 15
Net gains on liabilities at fair value resulting from changes in own credit 412 358 15 275 50 278 48
risk
Defined-benefit pension fund assets (149) (182) 18 (159) 6 (149) -
Fair value gains arising from the institution's own credit risk related to (70) (79) 11 (103) 32 (97) 28
derivative liabilities
Exposure amounts which could qualify for risk weighting of 1250% (25) (25) - (35) 29 (44) 43
Total regulatory adjustments to CET1 (7,599) (7,656) 1 (7,690) 1 (7,069) (7)
CET1 capital 36,440 36,594 - 37,260 (2) 35,190 4
Additional Tier 1 capital (AT1) instruments 7,529 6,535 15 6,537 15 6,502 16
AT1 regulatory adjustments (20) (20) - (20) - (20) -
Tier 1 capital 43,949 43,109 2 43,777 - 41,672 5
Tier 2 capital instruments 9,308 9,452 (2) 9,534 (2) 11,449 (19)
Tier 2 regulatory adjustments (30) (30) - (30) - (30) -
Tier 2 capital 9,278 9,422 (2) 9,504 (2) 11,419 (19)
Total capital 53,227 52,531 1 53,281 - 53,091 -
Total risk-weighted assets (unreviewed) 258,031 258,378 - 259,684 (1) 247,065 4
1 Capital base is prepared on the regulatory scope of
consolidation
2 Change is the percentage point difference between two
periods, rather than percentage change
3 Variance is increase/(decrease) comparing current
reporting period to prior periods
Page 48
Capital review continued
Movement in total capital (audited)
2025 2024
$million
$million
CET1 at 1 January 35,190 34,314
Ordinary shares issued in the period and share premium - -
Share buyback (2,800) (2,500)
Profit for the period 5,100 4,072
Foreseeable dividends deducted from CET1 (1,377) (923)
Difference between dividends paid and foreseeable dividends (557) (469)
Movement in goodwill and other intangible assets (449) 432
Foreign currency translation differences 931 (525)
Non-controlling interests 26 18
Movement in eligible other comprehensive income 283 636
Deferred tax assets that rely on future profitability 16 10
Decrease/(increase) in excess expected loss 101 52
Additional value adjustments (prudential valuation adjustment) (69) 106
IFRS 9 transitional impact on regulatory reserves including day one - 2
Exposure amounts which could qualify for risk weighting 18 -
Fair value gains arising from the institution's own Credit Risk related to 27 19
derivative liabilities
Others - (54)
CET1 at 31 December 36,440 35,190
AT1 at 1 January 6,482 5,492
Net issuances (redemptions) 1,026 1,015
Foreign currency translation difference and others 1 (25)
AT1 at 31 December 7,509 6,482
Tier 2 capital at 1 January 11,419 11,935
Regulatory amortisation (227) 1,189
Net issuances (redemptions) (2,175) (1,517)
Foreign currency translation difference 251 (191)
Tier 2 ineligible minority interest 10 (3)
Others - 6
Tier 2 capital at 31 December 9,278 11,419
Total capital at 31 December 53,227 53,091
The main movements in capital in the period were:
• CET1 capital increased by $1.2 billion as retained profits of $5.1
billion, movement in other comprehensive income of $0.5 billion and foreign
currency translation impact of $0.9 billion were partly offset by share
buyback of $2.8 billion, distributions paid and foreseeable of $1.9 billion,
and an increase in regulatory deductions and other movements of $0.5 billion.
• AT1 capital increased by $1.0 billion following the issuance of $1.0
billion of 7.63 per cent securities and $1.0 billion of 7.00 per cent
securities partly offset by the redemption of $1.0 billion of 6.00 per cent
securities.
• Tier 2 capital decreased by $2.1 billion due to the redemption of $2.2
billion of Tier 2 during the year partly offset by the reversal of regulatory
amortisation and foreign currency translation impact.
Page 49
Capital review continued
Risk-weighted assets by business
31.12.25
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 125,366 23,842 26,713 175,921
Wealth & Retail Banking 45,075 11,707 - 56,782
Ventures 4,352 475 76 4,903
Central & other items 17,352 (801) 3,874 20,425
Total risk-weighted assets 192,145 35,223 30,663 258,031
30.09.25
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 122,556 22,555 30,323 175,434
Wealth & Retail Banking 47,790 10,583 - 58,373
Ventures 3,130 239 16 3,385
Central & other items 17,598 (799) 4,387 21,186
Total risk-weighted assets 191,074 32,578 34,726 258,378
30.06.25
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 128,605 22,555 30,969 182,129
Wealth & Retail Banking 47,027 10,583 - 57,610
Ventures 3,031 239 18 3,288
Central & other items 12,685 (799) 4,771 16,657
Total risk-weighted assets 191,348 32,578 35,758 259,684
31.12.24
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 124,635 19,987 24,781 169,403
Wealth & Retail Banking 47,764 9,523 - 57,287
Ventures 2,243 142 21 2,406
Central & other items 14,661 (173) 3,481 17,969
Total risk-weighted assets 189,303 29,479 28,283 247,065
Page 50
Capital review continued
Movement in risk-weighted assets
Credit risk Operational risk Market risk Total risk
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Ventures Central & Other items Total
$million
Banking
$million
$million
$million
$million
At 1 January 2024 116,621 50,771 1,885 22,146 191,423 27,861 24,867 244,151
Assets growth & mix 11,616 (491) 358 (5,176) 6,307 - - 6,307
Asset quality (2,472) (316) - (384) (3,172) - - (3,172)
Risk-weighted assets efficiencies - - - - - - - -
Model Updates 1,620 (1) - - 1,619 - (400) 1,219
Methodology and policy changes 38 39 - - 77 - (1,300) (1,223)
Acquisitions and disposals - - - - - - - -
Foreign currency translation (2,788) (1,397) - (691) (4,876) - - (4,876)
Other, Including non-credit risk movements - (841) - (1,234) (2,075) 1,618 5,116 4,659
At 31 December 2024 124,635 47,764 2,243 14,661 189,303 29,479 28,283 247,065
Assets growth & mix (1,712) (3,361) 2,109 1,919 (1,045) - - (1,045)
Asset quality 1,343 (483) - 567 1,427 - - 1,427
Risk-weighted assets efficiencies - - - - - - - -
Model Updates (1,265) 198 - - (1,067) - 63 (1,004)
Methodology and policy changes - - - - - - - -
Acquisitions and disposals (293) (92) - (19) (404) - - (404)
Foreign currency translation 2,658 1,049 - 224 3,931 - - 3,931
Other, Including non-credit risk movements - - - - - 5,744 2,317 8,061
At 31 December 2025 125,366 45,075 4,352 17,352 192,145 35,223 30,663 258,031
Movements in risk-weighted assets
RWA increased by $11.0 billion, or 4.4 per cent, from 31 December 2024 to
$258.0 billion. This was due to the increase in Credit Risk RWA of $2.8
billion, Market Risk RWA of $2.4 billion and Operational Risk RWA of $5.7
billion.
Corporate & Investment Banking
Credit Risk RWA increased by $0.7 billion, or 0.6 per cent, from 31 December
2024 to $125.4 billion due to:
• $2.7 billion increase from foreign currency translation
• $1.3 billion increase mainly due to deterioration in asset quality from
sovereign downgrades and other client grade moves
• $1.7 billion decrease from changes in asset growth and mix
- $5.0 billion decrease from optimisation actions
- $3.3 billion increase from asset growth
• $1.3 billion decrease from industry-wide regulatory changes to align IRB
model performance
• $0.3 billion decrease from exit of business in Cameroon.
Wealth & Retail Banking
Credit Risk RWA decreased by $2.7 billion, or 5.6 per cent, from 31 December
2024 to $45.1 billion mainly due to:
• $3.4 billion decrease from changes in asset growth and mix
• $0.5 billion decrease mainly due to improvement in asset quality
• $0.1 billion decrease from exit of business in Gambia
• $1.0 billion increase from foreign currency translation
• $0.2 billion increase from industry-wide regulatory changes to align IRB
model performance.
Ventures
Ventures is comprised of Mox Bank Limited, Trust Bank and SC Ventures. Credit
Risk RWA increased by $2.1 billion, or 94.0 per cent from 31 December 2024 to
$4.4 billion from asset balance growth from Mox Bank Limited and
SC Ventures.
Page 51
Capital review continued
Central & other items
Central & other items RWA mainly relate to the Treasury Market's liquidity
portfolio, equity investments and current and deferred tax assets.
Credit Risk RWA increased by $2.7 billion, or 18.4 per cent, from 31 December
2024 to $17.4 billion mainly due to:
• $1.9 billion increase from changes in asset growth and mix
• $0.6 billion increase due to deterioration in asset quality mainly from
sovereign downgrades and other client grade moves
• $0.2 billion increase from foreign currency translation.
Market Risk
Total Market Risk RWA increased by $2.4 billion, or 8.4 per cent, from 31
December 2024 to $30.7 billion mainly due to a $2.1 billion increase in
Standardised Approach (SA) Specific Interest Rate Risk RWA due primarily to
increases in the Credit Trading Portfolio.
Operational Risk
Operational Risk RWA increased by $5.7 billion, or 19.5 per cent, from 31
December 2024 to $35.2 billion, primarily driven by an increase in average
income measured over a rolling three-year time horizon. The Group has brought
forward the annual refresh of Operational Risk RWA with RWA increase
recognised in Q4'25 rather than Q1'26, as earlier guided, resulting in two
operational risk RWA increases in 2025.
Leverage ratio
31.12.25 30.09.25 Change(1) 30.06.25 Change(1) 31.12.24 Change(1)
$million
$million
%
$million
%
$million
%
Tier 1 capital (end point) 43,949 43,109 2 43,777 - 41,672 5
Derivative financial instruments 65,782 56,905 16 64,225 2 81,472 (19)
Derivative cash collateral 12,868 10,854 19 13,895 (7) 11,046 16
Securities financing transactions (SFTs) 96,096 94,881 1 98,772 (3) 98,801 (3)
Loans and advances and other assets 745,209 751,010 (1) 737,044 1 658,369 13
Total on-balance sheet assets 919,955 913,650 1 913,936 1 849,688 8
Regulatory consolidation adjustments(2) (96,565) (104,211) (7) (96,465) - (76,197) 27
Derivatives adjustments
Derivatives netting (51,827) (45,342) 14 (48,236) 7 (63,934) (19)
Adjustments to cash collateral (10,011) (9,093) 10 (12,032) (17) (10,169) (2)
Net written credit protection 2,604 2,752 (5) 2,757 (6) 2,075 25
Potential future exposure on derivatives 58,062 55,475 5 54,443 7 51,323 13
Total derivatives adjustments (1,172) 3,792 (131) (3,068) (62) (20,705) (94)
Counterparty risk leverage exposure measure for SFTs 6,715 6,390 5 5,959 13 4,198 60
Off-balance sheet items 117,341 125,281 (6) 120,878 (3) 118,607 (1)
Regulatory deductions from Tier 1 capital (8,084) (8,078) - (8,006) 1 (7,247) 12
Total exposure measure excluding claims on central banks 938,190 936,824 - 933,234 1 868,344 8
Leverage ratio excluding claims on central banks (%)(3) 4.7% 4.6% 8bps 4.7% (1)bps 4.8% (11)bps
Average leverage exposure measure excluding claims on central banks 949,214 933,449 2 946,944 - 894,296 6
Average leverage ratio excluding claims on central banks (%)(3) 4.6% 4.6% 4bps 4.6% 4bps 4.7% (4)bps
Countercyclical leverage ratio buffer 0.1% 0.1% - 0.1% - 0.1% -
G-SII additional leverage ratio buffer 0.4% 0.4% - 0.4% - 0.4% -
1 Variance is increase/(decrease) comparing current
reporting period to prior periods
2 Includes adjustment for qualifying central bank claims
and unsettled regular way trades
3 Change is the percentage point difference between two
periods, rather than percentage change
Page 52
Financial statements
Consolidated income statement
For the year ended 31 December 2025
Notes 2025 2024
$million
$million
Interest income 24,547 27,862
Interest expense (18,592) (21,496)
Net interest income 3 5,955 6,366
Fees and commission income 5,349 4,623
Fees and commission expense (1,100) (889)
Net fee and commission income 4 4,249 3,734
Net trading income 5 10,294 9,615
Other operating income 6 444 (172)
Operating income 20,942 19,543
Staff costs (9,109) (8,510)
Premises costs (434) (401)
General administrative expenses (2,591) (2,465)
Depreciation and amortisation (1,170) (1,126)
Operating expenses 7 (13,304) (12,502)
Operating profit before impairment losses and taxation 7,638 7,041
Credit impairment 8 (672) (547)
Goodwill, property, plant and equipment and other impairment 9 (65) (588)
Profit from associates and joint ventures 32 62 108
Profit before taxation 6,963 6,014
Taxation 10 (1,866) (1,972)
Profit for the year 5,097 4,042
Profit attributable to:
Non-controlling interests 29 12 (8)
Parent company shareholders 5,085 4,050
Profit for the year 5,097 4,042
cents cents
Earnings per share:
Basic earnings per ordinary share 12 195.4 141.3
Diluted earnings per ordinary share 12 189.6 137.7
The notes form an integral part of these financial statements and are
available in the Annual Report 2025.
Page 53
Financial statements continued
Consolidated statement of comprehensive income
For the year ended 31 December 2025
Notes 2025 2024
$million
$million
Profit for the year 5,097 4,042
Other comprehensive income/(loss):
Items that will not be reclassified to income statement: 198 (181)
Own credit losses on financial liabilities designated at fair value through (154) (426)
profit or loss
Equity instruments at fair value through other comprehensive income 371 71
Actuarial (loss)/gain on retirement benefit obligations 30 (11) 52
Revaluation surplus 5 25
Taxation relating to components of other comprehensive income 10 (13) 97
Items that may be reclassified subsequently to income statement: 1,520 (389)
Exchange differences on translation of foreign operations:
Net gains/(losses) taken to equity 788 (1,423)
Net gains on net investment hedges 14 129 678
Share of other comprehensive (loss)/income from associates and joint ventures 32 (28) 9
Debt instruments at fair value through other comprehensive income
Net valuation gains taken to equity 296 283
Reclassified to income statement 6 10 237
Net impact of expected credit losses 22 (35)
Cash flow hedges:
Net movements in cash flow hedge reserve 14 368 (101)
Taxation relating to components of other comprehensive income 10 (65) (37)
Other comprehensive income/(loss) for the year, net of taxation 1,718 (570)
Total comprehensive income for the year 6,815 3,472
Total comprehensive income attributable to:
Non-controlling interests 29 45 (22)
Parent company shareholders 6,770 3,494
Total comprehensive income for the year 6,815 3,472
Page 54
Financial statements continued
Consolidated balance sheet
As at 31 December 2025
Notes 2025 2024
$million
$million
Assets
Cash and balances at central banks 13,35 77,746 63,447
Financial assets held at fair value through profit or loss 13 195,257 177,517
Derivative financial instruments 13,14 65,782 81,472
Loans and advances to banks 13,15 43,901 43,593
Loans and advances to customers 13,15 286,788 281,032
Investment securities 13 166,956 144,556
Other assets 20 67,931 43,468
Current tax assets 10 574 663
Prepayments and accrued income 3,058 3,207
Interests in associates and joint ventures 32 1,426 1,020
Goodwill and intangible assets 17 6,231 5,791
Property, plant and equipment 18 2,559 2,425
Deferred tax assets 10 493 414
Retirement benefit schemes in surplus 154 151
Assets classified as held for sale 21 1,099 932
Total assets 919,955 849,688
Liabilities
Deposits by banks 13 30,846 25,400
Customer accounts 13 530,161 464,489
Repurchase agreements and other similar secured borrowing 13,16 7,757 12,132
Financial liabilities held at fair value through profit or loss 13 89,597 85,462
Derivative financial instruments 13,14 68,204 82,064
Debt securities in issue 13,22 72,858 64,609
Other liabilities 23 46,655 44,681
Current tax liabilities 10 709 726
Accruals and deferred income 7,358 6,896
Subordinated liabilities and other borrowed funds 13,27 8,834 10,382
Deferred tax liabilities 10 752 567
Provisions for liabilities and charges 24 401 349
Retirement benefit schemes in deficit 323 266
Liabilities included in disposal groups held for sale 21 914 381
Total liabilities 865,369 798,404
Equity
Share capital and share premium account 28 6,614 6,695
Other reserves 10,406 8,724
Retained earnings 29,573 28,969
Total parent company shareholders' equity 46,593 44,388
Other equity instruments 28 7,528 6,502
Total equity excluding non-controlling interests 54,121 50,890
Non-controlling interests 29 465 394
Total equity 54,586 51,284
Total equity and liabilities 919,955 849,688
The notes form an integral part of these financial statements and are
available in the Annual Report 2025.
These financial statements were approved by the Board of directors and
authorised for issue on 24 February 2026 and signed on its behalf by:
Maria Ramos Bill Winters
Group Chair Group Chief Executive
Page 55
Financial statements continued
Consolidated statement of changes in equity
For the year ended 31 December 2025
Ordinary share capital Preference Capital and merger reserves(1) Own credit adjust-ment reserve Fair value through other compre-hensive income reserve - debt Fair value through other compre-hensive income reserve - equity Cash-flow hedge reserve Trans-lation reserve Retained earnings Parent company share-holders' equity Other equity instruments Non-controlling interests Total
and share premium account
share capital and share premium account $million $million $million $million $million $million $million $million $million $million $million
$million
$million
As at 01 January 2024 5,321 1,494 17,453 100 (690) 330 91 (8,113) 28,459 44,445 5,512 396 50,353
Profit for the year - - - - - - - - 4,050 4,050 - (8) 4,042
Other comprehensive (loss)/ income(10) - - - (377) 442 (26)(8) (87) (735) 227(2,9) (556) - (14) (570)
Distributions - - - - - - - - - - - (43) (43)
Other equity instruments issued, net of expenses - - - - - - - - - - 1,568 - 1,568
Redemption of other equity instruments - - - - - - - - - - (553) - (553)
Treasury shares net movement - - - - - - - - (168) (168) - - (168)
Share option expense, net of taxation - - - - - - - - 269 269 - - 269
Dividends on ordinary shares - - - - - - - - (780) (780) - - (780)
Dividends on preference shares and AT1 securities - - - - - - - - (457) (457) - - (457)
Share buyback(6) (120) - 120 - - - - - (2,500) (2,500) - - (2,500)
Other movements - - - (1) 7 - - 210(3) (131)(4) 85 (25) 63(5) 123
As at 31 December 2024 5,201 1,494 17,573 (278) (241) 304 4 (8,638) 28,969 44,388 6,502 394 51,284
Profit for the year - - - - - - - - 5,085 5,085 - 12 5,097
Other comprehensive (loss)/income(10) - - - (134) 284 236(8) 311 885 103(2,9) 1,685 - 33 1,718
Distributions - - - - - - - - - - - (50) (50)
Other equity instruments issued, net of expenses - - - - - - - - - - 1,989 - 1,989
Redemption of other equity instruments - - - - - - - - - - (1,000) - (1,000)
Treasury shares net movement - - - - - - - - (452) (452) - - (452)
Share option expense, net of taxation - - - - - - - - 220 220 - - 220
Dividends on ordinary shares - - - - - - - - (954) (954) - - (954)
Dividends on preference shares and AT1 securities - - - - - - - - (527) (527) - - (527)
Share buyback(7) (81) - 81 - - - - - (2,800) (2,800) - - (2,800)
Other movements - - - - (27) - - 46 (71) (52) 37 76(5) 61
As at 31 December 2025 5,120 1,494 17,654 (412) 16 540 315 (7,707) 29,573 46,593 7,528 465 54,586
1 Includes capital reserve of $5 million (31 December
2024: $5 million), capital redemption reserve of $538 million (31 December
2024: $457 million) and merger reserve of $17,111 million
(31 December 2024: $17,111 million).
2 Includes actuarial (loss)/gain, net of taxation on Group
defined benefit schemes.
3 December 2024 movement includes realisation of
translation adjustment loss from sale of SCB Zimbabwe Limited ($190 million),
SCB Angola S.A. ($31 million), SCB Sierra Leone Limited
($25 million) transferred to other operating income.
4 Mainly includes movements related to Ghana
hyperinflation.
5 Movements are primarily from non-controlling interest
(refer note 29).
6 During 2024, the Group announced the following share
buybacks: a share buyback of up to $1,000 million in February 2024, which was
completed in June 2024; and a share buyback of up to $1,500 million in July
2024, which was completed in January 2025 (refer note 28 for share buyback
announced in July 2024).
7 During 2025, the Group announced the following share
buybacks: a share buyback of up to $1,500 million in February 2025, which was
completed in July 2025; and a share buyback of up to $1,300 million in July
2025, which was completed in January 2026 (refer note 28).
8 Includes $348 million (31 December 2024: $72 million)
mark-to-market gain on equity instruments (net of tax), $103 million (31
December 2024: $174 million) relating to transfer of gain on sale of equity
investment to retained earnings and reversal of deferred tax liability $9
million (31 December 2024: $76 million reversal of deferred tax asset). For
movement in deferred tax refer Note 10.
9 Includes $103 million (31 December 2024: $174 million)
gain on sale of equity investment in other comprehensive income reserve
transferred to retained earnings partly offset by $9 million
(31 December 2024: $13 million) capital gain tax.
10 All the amounts are net of tax.
Note 28 includes a description of each reserve.
The notes form an integral part of these financial statements and are
available in the Annual Report 2025.
Page 56
Financial statements continued
Basis of preparation
The consolidated and Company financial statements have been prepared on a
going concern basis and under the historical cost convention, as modified by
the revaluation of cash-settled share-based payments, fair value through other
comprehensive income, and financial assets and liabilities (including
derivatives) at Fair value through profit or loss.
The consolidated financial statements are presented in United States dollars
($), being the presentation currency of the Group and functional currency of
the Company, and all values are rounded to the nearest million dollars, except
when otherwise indicated.
Going concern
These financial statements were approved by the Board of directors on 24
February 2026. The directors have made an assessment of the Group's ability to
continue as a going concern. This assessment has been made having considered
the current macroeconomic and geopolitical headwinds, including:
• Review of the Group Strategy and Corporate Plan, including the annual
budget.
• An assessment of the actual performance to date, loan book quality,
credit impairment, legal and regulatory matters, compliance matters, recent
regulatory developments.
• Consideration of stress testing performed, including the Group Recovery
Plan (RP) which include the application of stressed scenarios. Under the tests
and through the range of scenarios, the results of these exercises and the RP
demonstrate that the Group has sufficient capital and liquidity to continue as
a going concern and meet minimum regulatory capital and liquidity
requirements.
• Analysis of the capital position of the Group, including the capital and
leverage ratios, and Internal Capital Adequacy Assessment Process (ICAAP),
which summarises the Group's capital and risk assessment processes, assesses
its capital requirements and the adequacy of resources to meet them.
• Analysis of the funding and liquidity position of the Group, including
the Internal Liquidity Adequacy Assessment Process (ILAAP), which considers
the Group's liquidity position, its framework and whether sufficient liquidity
resources are being maintained to meet liabilities as they fall due, was also
reviewed. Further, funding and liquidity was considered in the context of the
risk appetite metrics, including the LCR ratio.
• The level of debt in issue, including redemptions and issuances during
the year, debt falling due for repayment in the next 12 months and further
planned debt issuances, including the appetite in the market for the Group's
debt.
• The Group's portfolio of debt securities held at amortised cost.
• A detailed review of all principal risks as well as topical and emerging
risks.
Based on the analysis performed, the directors confirm they are satisfied that
the Group has adequate resources to continue in business for a period of at
least 12 months from 24 February 2026.
For this reason, the Group continues to adopt the going concern basis of
accounting for preparing the financial statements.
Page 57
Other supplementary financial information
The supplementary financial information is unaudited unless otherwise stated
Five-year summary
2025 2024 2023 2022 2021
$million $million $million $million $million
Operating profit before impairment losses and taxation 7,638 7,041 6,468 5,405 3,777
Impairment losses on loans and advances and other credit risk provisions (672) (547) (508) (836) (254)
Other impairment (65) (588) (1,008) (425) (372)
Profit before taxation 6,963 6,014 5,093 4,286 3,347
Profit attributable to shareholders 5,085 4,050 3,469 2,948 2,315
Loans and advances to banks(1) 43,901 43,593 44,977 39,519 44,383
Loans and advances to customers(1) 286,788 281,032 286,975 310,647 298,468
Total assets 919,955 849,688 822,844 819,922 827,818
Deposits by banks(1) 30,846 25,400 28,030 28,789 30,041
Customer accounts(1) 530,161 464,489 469,418 461,677 474,570
Shareholders' equity 46,593 44,388 44,445 43,162 46,011
Total capital resources(2) 63,420 61,666 62,389 63,731 69,282
Information per ordinary share Cents Cents Cents Cents Cents
Basic earnings per share 195.4 141.3 108.6 85.9 61.3
Underlying earnings per share 229.7 168.1 128.9 97.9 85.8
Dividends per share(3) 61.0 37.0 27.0 18.0 12.0
Net asset value per share 2,007.0 1,781.3 1,629.0 1,453.3 1,456.4
Net tangible asset value per share 1,730.0 1,541.1 1,393.0 1,249.0 1,277.0
Return on assets(%)(4) 0.6 0.5 0.4 0.4 0.3
Ratios % % % % %
Reported return on ordinary shareholders' tangible equity 11.9 9.7 8.4 6.8 4.8
Underlying return on ordinary shareholders' tangible equity 14.7 11.7 10.1 7.7 6.8
Reported cost-to-income ratio 63.5 64.0 64.1 66.9 74.3
Underlying cost-to-income ratio 59.1 59.9 64.1 66.2 70.5
Capital ratios:
CET1(5) 14.1 14.2 14.1 14.0 14.1
Total capital(5) 20.6 21.5 21.2 21.7 21.3
1 Excludes amounts held at fair value through profit or
loss.
2 Shareholders' funds, non-controlling interests, and
subordinated loan capital.
3 Dividend paid during the year per share.
4 Represents profit attributable to shareholders divided
by the total assets of the Group.
5 Unaudited.
Page 58
Other supplementary financial information continued
Insured and uninsured deposits
SCB operates and provides services to customers across many countries and
insured deposit is determined on the basis of limits enacted within local
regulations.
2025 2024
Insured deposits Uninsured deposits Insured deposits Uninsured deposits
Bank deposits Customer accounts Bank deposits Customer accounts Total Bank deposits Customer accounts Bank deposits Customer accounts Total
$million $million $million $million $million $million $million $million $million $million
Current accounts 10 18,704 25,144 167,530 211,388 8 15,596 19,844 152,101 187,549
Savings deposits - 34,046 - 94,855 128,901 - 31,977 - 86,579 118,556
Time deposits 28 32,740 7,513 200,463 240,744 - 28,417 6,717 170,752 205,886
Other deposits - 51 8,944 36,785 45,780 - 104 9,393 37,737 47,234
Total 38 85,541 41,601 499,633 626,813 8 76,094 35,954 447,169 559,225
UK and non-UK deposits
The following table summarises the split of Bank and Customer deposits into UK
and non-UK deposits for respective account lines based on the domicile or
residence of the clients.
2025 2024
UK deposits Non-UK deposits UK deposits Non-UK deposits
Bank deposits Customer accounts Bank deposits Customer accounts Total Bank deposits Customer accounts Bank deposits Customer accounts Total
$million $million $million $million $million $million $million $million $million $million
Current accounts 448 8,001 24,706 178,233 211,388 544 7,734 19,308 159,963 187,549
Savings deposits - 318 - 128,583 128,901 - 145 - 118,411 118,556
Time deposits 566 7,554 6,975 225,649 240,744 315 7,731 6,402 191,438 205,886
Other deposits 950 11,994 7,994 24,842 45,780 2,342 12,744 7,051 25,097 47,234
Total 1,964 27,867 39,675 557,307 626,813 3,201 28,354 32,761 494,909 559,225
Contractual maturity of Loans, Investment securities and Deposits
2025
Loans and advances to banks Loans and advances to customers Investment securities - Investment securities - Investment securities - Bank Customer accounts
Treasury and
Debt securities
Equity shares
$million $million
other eligible Bills
deposits $million
$million $million
$million $million
One year or less 67,606 170,999 69,082 39,457 - 37,171 514,547
Between one and five years 11,109 75,643 85 83,024 - 4,464 67,336
Between five and ten years 1,572 23,308 - 22,287 - 4 1,211
Between ten years and fifteen years 164 13,841 - 5,659 - - 1,528
More than fifteen years and undated 122 65,794 - 32,863 10,287 - 552
Total 80,573 349,585 69,167 183,290 10,287 41,639 585,174
Total amortised cost and FVOCI exposures 43,901 286,788
Of which: Fixed interest rate exposures 36,651 150,052
Of which: Floating interest rate exposures 7,250 136,736
2024
Loans and advances to banks Loans and advances to customers Investment securities - Investment securities - Investment securities - Bank Customer accounts
Treasury and
Debt securities
Equity shares
$million $million
other eligible Bills
deposits $million
$million $million
$million $million
One year or less 66,448 181,863 41,966 47,959 - 29,678 463,566
Between one and five years 12,122 63,006 41 74,197 - 6,281 57,062
Between five and ten years 1,680 21,139 - 23,319 - 3 849
Between ten years and fifteen years 71 13,236 - 5,876 - - 1,217
More than fifteen years and undated 239 60,313 - 26,743 6,480 - 569
80,560 339,557 42,007 178,094 6,480 35,962 523,263
Amortised cost and FVOCI exposures 43,593 281,032
Of which: Fixed interest rate exposures 35,383 153,575
Of which: Floating interest rate exposures 8,210 127,457
Page 59
Other supplementary financial information continued
Maturity and yield of Debt securities, alternative tier one and other eligible
bills held at amortised cost
One year or less Between one and five years Between five and ten years More than ten years Total
$million Yield % $million Yield % $million Yield % $million Yield % $million Yield %
Central and other government agencies
• US 3,234 1.06 10,495 1.35 4,038 0.94 4,197 2.59 21,964 1.47
• UK 129 0.80 331 2.51 49 0.88 - - 509 1.92
• Other 4,916 2.36 9,243 2.59 3,799 2.90 19 6.90 17,977 2.60
Other debt securities 1,770 6.42 3,403 5.51 5,514 4.67 6,113 4.69 16,800 5.03
As at 31 December 2025 10,049 2.64 23,472 2.46 13,400 3.03 10,329 3.84 57,250 2.87
One year or less Between one and five years Between five and ten years More than ten years Total
$million Yield % $million Yield % $million Yield % $million Yield % $million Yield %
Central and other government agencies
• US 1,864 1.53 9,607 1.98 5,187 1.88 4,353 2.76 21,011 2.08
• UK 192 1.70 684 2.07 44 0.88 - - 920 1.93
• Other 3,081 3.20 11,454 3.39 2,932 3.93 25 7.55 17,492 3.46
Other debt securities 1,687 6.21 2,676 6.30 4,620 4.86 6,731 5.41 15,714 5.49
As at 31 December 2024 6,824 3.45 24,421 3.12 12,783 3.42 11,109 4.38 55,137 3.48
The maturity distributions are presented in the above table on the basis of
contractual maturity dates. The weighted average yield for each range of
maturities is calculated by dividing the annualised interest income for the
year by the book amount of debt securities at that date.
Average balance sheets and yields and volume and price variances
Average balance sheets
For the purposes of calculating net interest margin the following adjustments
are made:
• Reported net interest income is adjusted to remove interest expense on
amortised cost liabilities used to provide funding to the financial markets
business.
• Financial instruments measured at fair value through profit or loss are
classified as non-interest earning.
• Premiums on financial guarantees purchased to manage interest earning
assets are treated as interest expense In the Group's view this results in a
net interest margin that is more reflective of banking book performance.
Page 60
Other supplementary financial information continued
The following tables set out the average balances for the Group's assets and
liabilities for the periods ended 31 December 2025 and
31 December 2024 under the revised definition of net interest margin. For the
purpose of these tables, average balances have been determined on the basis of
daily balances, except for certain categories, for which balances have been
determined less frequently.
The Group does not believe that the information presented in these tables
would be significantly different had such balances been determined on a daily
basis.
Average assets 2025
Average Average Interest income Gross yield Gross yield
non-interest-
interest-
interest-
total balance
earning balance
earning balance $million
earning balance
%
$million $million %
Cash and balances at central banks 10,160 61,692 2,126 3.45 2.96
Gross loans and advances to banks 42,579 47,298 2,209 4.67 2.46
Gross loans and advances to customers 69,057 289,758 14,147 4.88 3.94
Impairment provisions against loans and advances to banks and customers - (5,151) - - -
Investment securities - Treasury and Other Eligible Bills 24,397 31,037 1,210 3.90 2.18
Investment securities - Debt Securities 66,974 126,296 4,855 3.84 2.51
Investment securities - Equity Shares 7,790 - - - -
Property, plant and equipment and intangible assets 6,378 - - - -
Prepayments, accrued income and other assets 145,005 - - - -
Investment associates and joint ventures 1,264 - - - -
Total average assets 373,604 550,930 24,547 4.46 2.66
Adjustment for trading book funding cost and others 783
Total average assets 373,604 550,930 25,330 4.60 2.74
Average assets 2024
Average Average Interest income Gross yield Gross yield
non-interest-
interest-
interest-earning balance
total balance
earning balance
earning balance $million
% %
$million $million
Cash and balances at central banks 9,815 57,294 2,520 4.40 3.76
Gross loans and advances to banks 43,184 44,394 2,368 5.33 2.70
Gross loans and advances to customers 57,614 286,588 16,314 5.69 4.74
Impairment provisions against loans and advances to banks and customers - (5,463) - - -
Investment securities - Treasury and Other Eligible Bills 16,101 26,594 1,495 5.62 3.50
Investment securities - Debt Securities 58,362 129,931 5,165 3.98 2.74
Investment securities - Equity Shares 5,278 - - - -
Property, plant and equipment and intangible assets 6,299 - - - -
Prepayments, accrued income and other assets 123,832 - - - -
Investment associates and joint ventures 1,105 - - - -
Total average assets 321,590 539,338 27,862 5.17 3.24
Adjustment for trading book funding cost and others 650
Total average assets 321,590 539,338 28,512 5.29 3.31
Page 61
Other supplementary financial information continued
Average liabilities 2025
Average Average Interest expense Rate paid Rate paid total balance
non-interest-
interest-
interest-
bearing balance
bearing balance $million
bearing balance %
$million $million %
Deposits by banks 17,545 23,599 664 2.81 1.61
Customer accounts:
Current accounts 41,812 142,460 3,869 2.72 2.10
Savings deposits - 128,464 1,659 1.29 1.29
Time deposits 25,589 198,558 8,128 4.09 3.63
Other deposits 37,551 5,836 222 3.80 0.51
Debt securities in issue 12,702 72,254 3,432 4.75 4.04
Accruals, deferred income and other liabilities 156,522 1,292 66 5.11 0.04
Subordinated liabilities and other borrowed funds - 9,448 552 5.84 5.84
Non-controlling interests 392 - - - -
Shareholders' funds 50,510 - - - -
342,623 581,911 18,592 3.19 2.01
Adjustment for trading book funding cost and others (4,446)
Total average liabilities and shareholders' funds 342,623 581,911 14,146 2.43 1.53
Average liabilities 2024
Average Average Interest expense Rate paid Rate paid total balance
non-interest-
interest-
interest-
bearing balance
bearing balance $million
bearing balance %
$million $million %
Deposits by banks 16,834 21,686 806 3.72 2.09
Customer accounts:
Current accounts 41,870 127,624 5,134 4.02 3.03
Savings deposits - 114,641 2,292 2.00 2.00
Time deposits 20,937 187,694 8,340 4.44 4.00
Other deposits 34,954 10,291 510 4.96 1.13
Debt securities in issue 11,958 65,521 3,610 5.51 4.66
Accruals, deferred income and other liabilities 143,771 1,024 60 5.86 0.04
Subordinated liabilities and other borrowed funds - 11,306 744 6.58 6.58
Non-controlling interests 395 - - - -
Shareholders' funds 50,425 - - - -
321,144 539,787 21,496 3.98 2.50
Adjustment for trading book funding cost and others (4,096)
Total average liabilities and shareholders' funds 321,144 539,787 17,400 3.22 2.02
Page 62
Other supplementary financial information continued
Net interest margin
2025 2024
$million $million
Interest income (reported) 24,547 27,862
Adjustment for trading book funding cost and others(1) 783 650
Interest income adjusted for trading book funding cost and others 25,330 28,512
Average interest-earning assets 550,930 539,338
Gross yield (%) 4.60 5.29
Interest expense (reported) 18,592 21,496
Adjustment for trading book funding cost and others (4,446) (4,096)
Interest expense adjusted for trading book funding cost and others 14,146 17,400
Average interest-bearing liabilities 581,911 539,787
Rate paid (%) 2.43 3.22
Net yield (%) 2.17 2.07
Net interest income adjusted for trading book funding cost and others 11,184 11,112
Net interest margin (%) 2.03 2.06
1 Adjusted net interest income has been re-presented in
line with the RNS on Re-Presentation of Financial Information issued on 2
April 2025 to reflect the reclassification of funding cost mismatches and
treasury currency management activities to non-net interest income (non NII).
Adjusted NII is reported NII less trading book funding cost, treasury currency
management activities, cash collateral and prime service.
Volume and price variances
The following table analyses the estimated change in the Group's net interest
income attributable to changes in the average volume of interest-earning
assets and interest-bearing liabilities, and changes in their respective
interest rates for the years presented. Volume and rate variances have been
determined based on movements in average balances and average exchange rates
over the year and changes in interest rates on average interest-earning assets
and average interest-bearing liabilities.
2025 versus 2024 2024 versus 2023
(Decrease)/increase Net increase/ (decrease) in interest (Decrease)/increase
in interest due to:
in interest due to: N
$million e
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$
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i
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i
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Volume Rate Volume Rate
$million $million $million $million
Interest earning assets
Cash and unrestricted balances at central banks 152 (546) (394) (455) 142 (313)
Loans and advances to banks 136 (295) (159) 12 261 273
Loans and advances to customers 172 (2,339) (2,167) (845) 1,463 618
Investment securities 31 (626) (595) (362) 420 58
Total interest-earning assets 491 (3,806) (3,315) (1,650) 2,286 636
Interest bearing liabilities
Subordinated liabilities and other borrowed funds (109) (83) (192) (65) (144) (209)
Deposits by banks 54 (196) (142) (88) 100 12
Customer accounts:
Current accounts and savings deposits 595 (2,488) (1,893) (69) 1,343 1,274
Time and other deposits 314 (813) (499) 242 483 725
Debt securities in issue 320 (498) (178) (3) 239 236
Total interest-bearing liabilities 1,174 (4,078) (2,904) 17 2,021 2,038
Page 63
Shareholder information
Dividend and interest payment dates
Ordinary shares Final dividend
Results and dividend announced 24 February 2026
Ex-dividend date 18 (HK) 19 (UK) March 2026
Record date for dividend 20 March 2026
Last date to amend currency election instructions for cash dividend* 16 April 2026
Dividend payment date 14 May 2026
* In either US dollars, pound sterling or Hong Kong dollars.
Preference shares 1st half yearly dividend 2nd half yearly dividend
73 ∕8 per cent non-cumulative irredeemable preference shares of £1 1 April 2026 1 October 2026
81 ∕4 per cent non-cumulative irredeemable preference shares of £1 each 1 April 2026 1 October 2026
6.409 per cent non-cumulative redeemable preference shares of $5 each 30 January and 30 April 2026 30 July and 30 October 2026
7.014 per cent non-cumulative redeemable preference shares of $5 each 30 January 2026 30 July 2026
Annual General Meeting (AGM)
The AGM will be held on Thursday, 7 May 2026 at 11.00am UK time (6.00pm Hong
Kong time). Further details regarding the format, location and business to be
transacted at the meeting will be disclosed within the 2026 Notice of AGM.
Interim results
The interim results will be announced to the London Stock Exchange and the
Stock Exchange of Hong Kong Limited and put on the Company's website.
Country-by-country reporting
In accordance with the requirements of the Capital Requirements
(country-by-country reporting) Regulations 2013, the Group will publish
additional country-by-country information in respect of the year ended 31
December 2025, on or before 31 December 2026. We have also published our UK
tax strategy.
Pillar 3 reporting
In accordance with the Pillar 3 disclosure requirements, the Group has
published the Pillar 3 disclosures in respect of the year ended
31 December 2025.
ShareCare
ShareCare is available to shareholders on the Company's UK register who have a
UK address and bank account. It allows you to hold your Standard Chartered PLC
shares in a nominee account. Your shares will be held in electronic form, so
you will no longer have to worry about keeping your share certificates safe.
If you join ShareCare, you will still be invited to attend the Company's AGM
and you will receive any dividend at the same time as everyone else. ShareCare
is free to join and there are no annual fees to pay.
Donating shares to ShareGift
Shareholders who have a small number of shares often find it uneconomical to
sell them. An alternative is to consider donating them to the charity
ShareGift (registered charity 1052686), which collects donations of unwanted
shares until there are enough to sell and uses the proceeds to support UK
charities. There is no implication for capital gains tax (no gain or loss)
when you donate shares to charity, and UK taxpayers may be able to claim
income tax relief on the value of their donation.
Bankers' Automated Clearing System
Dividends can be paid straight into your bank or building society account.
Registrars and shareholder enquiries
If you have any enquiries relating to your shareholding and you hold your
shares on the UK register, please contact our registrar at
investorcentre.co.uk. Alternatively, please contact Computershare Investor
Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZZ or call the
shareholder helpline number on 0370 702 0138. If you hold your shares on the
Hong Kong branch register and you have enquiries, please contact Computershare
Hong Kong Investor Services Limited, 17M Floor, Hopewell Centre, 183 Queen's
Road East, Wan Chai, Hong Kong.
Page 64
Shareholder information continued
Substantial shareholders
The Company and its shareholders have been granted partial exemption from the
disclosure requirements under Part XV of the Securities and Futures Ordinance
(SFO). As a result of this exemption, shareholders, directors and chief
executives, no longer have an obligation under Part XV of the SFO (other than
Divisions 5, 11 and 12 thereof) to notify the Company of substantial
shareholding interests, and the Company is no longer required to maintain a
register of interests of substantial shareholders under section 336 of the
SFO, nor a register of directors' and chief executives' interests under
section 352 of the SFO. The Company is, however, required to file with The
Stock Exchange of Hong Kong Limited any disclosure of interests made in the
UK.
Taxation
The Company has a Group-wide policy on tax strategy and governance, which
details that we seek to apply our approach to tax in all jurisdictions in
which we operate and are committed to paying all taxes legally due. This
policy is approved by the Board annually and is available on our website
sc.com/regulatory-disclosures.
No tax is currently withheld from payments of dividends by Standard Chartered
PLC. Shareholders and prospective purchasers should consult an appropriate
independent professional adviser regarding the tax consequences of an
investment in shares in light of their particular circumstances, including the
effect of any national, state or local laws.
Chinese translation
If you would like a Chinese language version of the 2025 Annual Report, please
contact Computershare Hong Kong Investor Services Limited, 17M Floor, Hopewell
Centre, 183 Queen's Road East, Wan Chai, Hong Kong.
二〇二五年年報之中文譯本可向香港中央證券登記有限公司索取,
地址：香港灣仔皇后大道東183號合和中心17M樓。
Shareholders on the Hong Kong branch register who have asked to receive
corporate communications in either Chinese or English can change this election
by contacting Computershare. If there is any inconsistency between the English
version of this document and any translation of the English version, the
English version shall prevail.
Electronic communications
If you hold your shares on the UK register and in future you would like to
receive the Annual Report electronically rather than by post, please register
online at: www.investorcentre.co.uk. Click on 'register now' and follow the
instructions. You will need to have your Shareholder or ShareCare reference
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.
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.
Page 65
Shareholder information continued
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
The Group financial statements have been prepared in accordance with
UK-adopted international accounting standards and International Financial
Reporting Standards (IFRS) as adopted by the European Union. Standard
Chartered PLC's financial statements have been prepared in accordance with
UK-adopted international accounting standards (IAS) as applied in conformity
with section 408 of the Companies Act 2006. This document may contain
financial measures and ratios not specifically defined under IFRS or IAS
and/or alternative performance measures as defined in the European Securities
and Market Authority guidelines. Such measures may exclude certain items which
management believes are not representative of the underlying performance of
the business and which distort period-on-period comparison. These measures are
not a substitute for IAS or IFRS measures and are based on a number of
assumptions that are subject to uncertainties and change. Please refer to the
Annual Report and the financial statements of the Group for further
information, including reconciliations between the underlying and reported
measures.
Financial instruments
Nothing in this document shall constitute, in any jurisdiction, an offer or
solicitation to sell or purchase any securities or other financial
instruments, nor shall it constitute a recommendation or advice in respect of
any securities or other financial instruments or any other matter.
Caution regarding climate and environment related information
Some of the climate and environment related information in this document is
subject to certain limitations, and therefore the reader should treat the
information provided, as well as conclusions, projections and assumptions
drawn from such information, with caution. The information may be limited due
to a number of factors, which include (but are not limited to): a lack of
reliable data; a lack of standardisation of data; and future uncertainty. The
information includes externally sourced data that may not have been verified.
Furthermore, some of the data, models and methodologies used to create the
information is subject to adjustment which is beyond our control, and the
information is subject to change without notice.
General
You are advised to exercise your own independent judgement (with the advice of
your professional advisers as necessary) with respect to the risks and
consequences of any matter contained in this document. The Group, its
affiliates, directors, officers, employees or agents expressly disclaim any
liability and responsibility for any decisions or actions which you may take
and for any damage or losses you may suffer from your use of or reliance on
the information contained in this document.
Basis of preparation and caution regarding data limitations
This section is specifically relevant to, among others, the sustainability and
climate models, calculations and disclosures throughout this report. The
information contained in this document has been prepared on the following
basis:
i. disclosures in the Strategic report, Financial review,
Sustainability review, Directors' report, Risk review and Capital review and
Supplementary information are unaudited unless otherwise stated;
ii. all information, positions and statements set out in this document
are subject to change without notice;
iii. the information included in this document does not constitute any
investment, accounting, legal, regulatory or tax advice or an invitation or
recommendation to enter into any transaction;
iv. the information included in this document may have been repaired
using models, methodologies and data that are subject to certain limitations.
These limitations include: the limited availability of reliable data, data
gaps and the nascent nature of the methodologies and technologies underpinning
this data; the limited standardisation of data (given, among other things,
limited international coordination on data and methodology standards); and
future uncertainty (due, among other things, to changing projections relating
to technological development and global and regional laws, regulations and
policies, and the current inability to make use of strong historical data);
v. models, external data and methodologies used in information
included in this document are or could be subject to adjustment which is
beyond our control;
vi. any opinions and estimates should be regarded as indicative,
preliminary and for illustrative purposes only. Expected and actual outcomes
may differ from those set out in this document (as explained in the
'Forward-looking statements' section above);
vii. some of the related information appearing in this document may have
been obtained from public and other sources and, while the Group believes such
information to be reliable, it has not been independently verified by
the Group and no representation or warranty is made by the Group as to its
quality, completeness, accuracy, fitness for a particular purpose or
noninfringement of such information;
viii. for the purposes of the information included in this document, a
number of key judgements and assumptions have been made. It is possible that
the assumptions drawn, and the judgement exercised may subsequently turn out
to be inaccurate. The judgements and data presented in this document are not a
substitute for judgements and analysis made independently by the reader;
Page 66
Shareholder information continued
ix. any opinions or views of third parties expressed in this document
are those of the third parties identified, and not of the Group, its
affiliates, directors, officers, employees or agents. By incorporating or
referring to opinions and views of third parties, the Group is not, in any
way, endorsing or supporting such opinions or views;
x. while the Group bears primary responsibility for the information
included in this document, it does not accept responsibility for the external
input provided by any third parties for the purposes of developing the
information included in this document;
xi. the data contained in this document reflects available information
and estimates at the relevant time;
xii. where the Group has used any methodology or tools developed by a
third party, the application of the methodology or tools (or consequences of
its application) shall not be interpreted as conflicting with any legal or
contractual obligations and such legal or contractual obligations shall take
precedence over the application of the methodology or tools;
xiii. where the Group has used any underlying data provided or sourced by a
third party, the use of the data shall not be interpreted as conflicting with
any legal or contractual obligations and such legal or contractual obligations
shall take precedence over the use of the data;
xiv. this Important Notice is not limited in applicability to those sections
of the document where limitations to data, metrics and methodologies are
identified and where this Important Notice is referenced. This Important
Notice applies to the whole document;
xv. further development of reporting, standards or other principles could
impact the information included in this document or any metrics, data and
targets included in this document (it being noted that ESG reporting and
standards are subject to rapid change and development); and
xvi. while all reasonable care has been taken in preparing the information
included in this document, neither the Group nor any of its affiliates,
directors, officers, employees or agents make any representation or warranty
as to its quality, accuracy or completeness, and they accept no responsibility
or liability for the contents of this information, including any errors of
fact, omission or opinion expressed.
You are advised to exercise your own independent judgement (with the advice of
your professional advisers as necessary) with respect to the risks and
consequences of any matter contained in this document.
The Group, its affiliates, directors, officers, employees or agents expressly
disclaim any liability and responsibility for any decisions or actions that
you may take and for any damage or losses you may suffer from your use of or
reliance on the information contained in this document.
Copyright in all materials, text, articles and information contained in this
document (other than third-party materials, text, articles and information) is
the property of, and may only be reproduced with permission of an authorised
signatory of, the Group.
Copyright in materials, text, articles and information created by third
parties and the rights under copyright of such parties are hereby
acknowledged. Copyright in all other materials not belonging to third parties
and copyright in these materials as a compilation vests and shall remain at
all times copyright of the Group and should not be reproduced or used except
for business purposes on behalf of the Group or save with the express prior
written consent of an authorised signatory of the Group.
All rights reserved.
Page 67
Shareholder information continued
Contact Information
Global headquarters
Standard Chartered Group
1 Basinghall Avenue
London, EC2V 5DD
United Kingdom
+44 (0)20 7885 8888
Digital Annual Report
sc.com/annualreport
Shareholder enquiries
ShareCare information
sc.com/sharecare
+44 (0)370 702 0138
ShareGift information
ShareGift.org
+44 (0)20 7930 3737
Registrar information
UK
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol, BS99 6ZZ
+44 (0)370 702 0138
Hong Kong
Computershare Hong Kong
Investor Services Limited
17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong
computershare.com/hk/investors
Chinese translation
Computershare Hong Kong
Investor Services Limited
17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong
Register for electronic communications investorcentre.co.uk
LSE stock code: STAN.LN
HKSE stock code: 02888
Page 68
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