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    1st Quarter Results

    Picture of Standard Chartered logoStandard Chartered
    30/04/2026 07:00
    RNS Number : 4932C

Standard Chartered PLC

30 April 2026

 

 

 

 

 

Standard Chartered PLC

Q1'26 Results

30 April 2026

 

Registered in England under company No. 966425

Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK

 

Page 01

Table of contents

 


    Performance highlights03
    Statement of results04
    Group Chief Financial Officer's review05
    Financial review07
    Supplementary financial information12
    Risk review20
    Capital review24
    Financial statements28
    Other supplementary financial information33
    Shareholder information34
    

 

 

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 this document, 'China' refers to the People's Republic of China and, for the purposes of this document only, excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to the Republic of Korea.

Within the tables in this report, blank spaces indicate that the number is not disclosed, dashes indicate that the number is zero and nm stands for not meaningful. Standard Chartered PLC is incorporated in England and Wales with limited liability. Standard Chartered PLC is headquartered in London.

The Group's head office provides guidance on governance and regulatory standards. Standard Chartered PLC stock codes are: HKSE 02888 and LSE STAN.LN

                                                                     

 

Page 02

Standard Chartered PLC - Results for the first quarter ended 31 March 2026

All figures are presented on a reported basis and comparisons are made to 2025 on a constant currency basis, unless otherwise stated.

Bill Winters, Group Chief Executive, said:

"We delivered a record first quarter performance in 2026, with double digit growth in Wealth Solutions and Global Banking. Despite ongoing geopolitical tensions and global economic uncertainty, our advantaged market presence and disciplined risk management give us confidence in our ability to perform. We continue to support our clients as they manage their businesses and wealth across borders, and we look forward to setting out our next phase of growth at our Investor Event next month."

Selected information on Q1'26 financial performance with comparisons to Q1'25 unless otherwise stated

•   Operating income of $5.9bn up 9%; a record quarter

-   Net interest income1 (NII) up 1% to $2.9bn

-   Non-interest income1 up 16% to $3.0bn largely driven by Wealth Solutions and Global Banking

-   Record quarter in Wealth Solutions with income up 32%, with strong performance in Investment Products and Bancassurance

-   Global Banking up 19%, driven by higher origination volumes, and increased capital markets activity

•   Operating expenses up 1% to $3.1bn; driven by targeted investments for business growth partly offset by efficiency saves

•   Credit impairment charge of $296m up $79m, mostly driven by $190m of precautionary management overlays relating to the Middle East conflict, partly offset by releases and recoveries in Corporate & Investment Banking and reduction in other overlays

•   Record profit before tax of $2.5bn, up 17% at ccy

•   Return on Tangible Equity (RoTE) of 17.4%, up 260bps

•   Balance sheet remains strong, liquid and well diversified with underlying loans and advances to customers up 3% and underlying customer deposits up 3% quarter-on-quarter

•   Risk-weighted assets (RWA) of $266bn up $8.2bn since 31.12.25; Credit risk RWA up $5.3bn, Market risk RWA up $3bn, and Operational RWA was broadly unchanged

•   The Group remains strongly capitalised with a Common Equity Tier 1 (CET1) ratio of 13.4%, down 16bps quarter-on-quarter excluding the impact of the share buyback of 58bps

•   Earnings per share of 74.2 cents, up 17.6 cents or 31% year-on-year

•   Tangible net asset value per share of $17.20, up 159 cents or 10% year-on-year

Guidance

Our 2026 guidance remains unchanged and 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 income1 expected to be broadly flat year-on-year at constant currency

•   Reported cost to be broadly flat at constant currency including the final year of Fit for Growth charges

•   Statutory RoTE to be greater than 12 per cent

 

 

1  Net interest income and non-interest income are adjusted for trading book funding cost, treasury currency management activities, interest from cash collateral from trading businesses and from prime services activities

 

 

Page 03

Statement of results


    Q1'26Q1'25Change1
    $million$million%
    Financial performance7
    Operating income5,9025,37910
    Operating expenses(3,140)(3,046)(3)
    Credit impairment(296)(217)(36)
    Other impairment(2)(15)87
    Profit from associates and joint ventures(14)2nm
    Profit before taxation2,4502,10317
    Taxation(540)(511)(6)
    Profit for the period1,9101,59220
    Profit attributable to parent company shareholders1,9001,59019
    Profit attributable to ordinary shareholders21,6601,35722
    Return on ordinary shareholders' tangible equity (%)17.414.8260bps
    Cost to income ratio (%)53.256.6340bps
    Net interest margin (%) (adjusted)62.052.12(7)bps
    Balance sheet and capital
    Total assets972,907874,44611
    Total equity54,68552,4684
    Average tangible equity attributable to ordinary shareholders²38,60237,1654
    Loans and advances to customers293,561281,7884
    Customer accounts542,223490,92110
    Risk weighted assets266,186253,5965
    Total capital52,75953,111(1)
    Total capital (%)19.820.9(112)
    Common Equity Tier 135,61635,1221
    Common Equity Tier 1 ratio (%)13.413.8(47)
    Advances-to-deposits ratio (%)351.151.8(1.4)
    Liquidity coverage ratio (%)1511472.8
    Leverage ratio (%)4.64.7(10)bps
    Information per ordinary share
    Earnings per share4 (cents)74.256.631
    Net asset value per share5 (cents)2,0011,80611
    Tangible net asset value per share5 (cents)1,7201,56110
    Number of ordinary shares at period end (millions)2,2292,384(7)
    

1  Variance is better/(worse) other than assets, liabilities and risk-weighted assets. Change is the basis points (bps) difference between the two periods rather than the 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 earnings divided by the basic weighted average number of shares. Results represent three months ended the reporting period

5   Calculated on period end net asset value, tangible net asset value and number of shares

6   Net interest margin is calculated as adjusted net interest income divided by average interest-earning assets, annualised

7   Performance/results within this interim financial report means amounts reported under UK-adopted International Accounting Standards and International Financial Reporting Standards

 

Page 04

 

Group Chief Financial Officer's review

Summary of financial performance

All commentary that follows is on reported basis and comparisons are made to the equivalent period in 2025 on a constant currency basis, unless otherwise stated.

We delivered strong performance in the first quarter of 2026 amidst ongoing uncertainty in macro environment. Record operating income of $5.9 billion grew 9 per cent driven by record quarterly performances in both Wealth Solutions and Global Banking. Operating expenses grew by 1 per cent year-on-year as disciplined cost management enabled us to generate positive income-to-cost jaws of 8 per cent. Credit impairment charges of $296 million were equivalent to an annualised loan-loss rate of 32 basis points including a precautionary management overlay of $190 million reflecting uncertainty related to the Middle East conflict. This resulted in a reported profit before tax of $2.5 billion, up 17 per cent and earnings per share of 74 cents, up 31 per cent including the benefit from a reduction in share count as well as the increase in profitability.

The Group remains well capitalised and highly liquid with a diverse and stable deposit base. The Common Equity Tier 1 (CET1) ratio of 13.4 per cent remains well within the 13 per cent to 14 per cent target range. The liquidity coverage ratio of 151 per cent reflects disciplined asset and liability management.

Adjusted net interest income (NII) increased 1 per cent, as the benefit from higher volumes and improved mix was partly offset by the impact of lower interest rates and margin compression.

Adjusted non-interest income grew 16 per cent. Wealth Solutions income grew strongly as a result of client activity across multiple asset classes within Investment Products and from record affluent net new money accumulation. A strong performance in Global Banking resulted from higher origination volumes and strong Capital Markets activity.

Operating expenses were well controlled, with modest growth of 1 per cent. This growth was primarily driven by targeted investments into key business initiatives across Wealth and Retail Banking (WRB) and Corporate and Investment Banking (CIB), as well as cost to achieve relating to the ongoing Fit for Growth programme. This increase was partially offset by savings from our Fit for Growth programme. The cost to income ratio improved by 3 percentage point to 53 per cent.

Credit impairment of $296 million was up $79 million year-on-year. The first quarter charge includes a precautionary management overlay of $190 million driven by an increase in non-linearity as well as overlays for certain sectoral and sovereign risks. This was partly offset by recoveries and releases in CIB and portfolio de-risking actions in WRB.

Profit from associates and joint ventures was a loss of $14 million, reflecting our share of losses in certain minority investments.

Taxation was $540 million, with an effective tax rate of 22.0 per cent, down 2.3 per cent on the prior year, primarily due to improved performance in the UK entity reducing unrecognised deferred tax assets partly offset by non-recurring beneficial adjustments in respect of prior periods.

RoTE of 17.4 per cent was up 260 basis points, reflecting an increase in reported profits and a lower effective tax rate partly offset by higher average tangible equity.

Basic earnings per share (EPS) increased 17.6 cents or 31 per cent to 74.2 cents reflecting both the increase in profits and the reduction in share count following the execution of successive share buyback programmes.

 

 

Pete Burrill

Interim Group Chief Financial Officer

30 April 2026

 

Page 05

Group Chief Financial Officer's review continued

Reported financial performance summary


    Q1'26Q1'25ChangeConstant currency change¹Q4'25ChangeConstant currency change¹
    $million$million%%$million%%
    Adjusted net interest income22,8692,797312,948(3)(3)
    Adjusted non-interest income23,0332,58217161,9785353
    Operating income5,9025,3791094,9262020
    Operating expenses(3,140)(3,046)(3)(1)(3,913)2020
    Operating profit before impairment and taxation2,7622,33318191,013173174
    Credit impairment(296)(217)(36)(33)(148)(100)(103)
    Other impairment(2)(15)8787(24)9292
    Profit/(loss) from associates and joint ventures(14)2nmnm(27)4850
    Profit before taxation2,4502,1031717814nmnm
    Taxation(540)(511)(6)(3)(341)(58)(65)
    Profit for the period1,9101,5922022473nmnm
    Return on tangible equity (%)317.414.82604.81,260
    Basic earnings per share (cents)74.256.63120.4nm
    

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     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

3     Change is the basis points (bps) difference between the two periods rather than the percentage change

Net interest income and non-interest income


    Q1'26Q1'25Q4'25
    Adjusted1Adjustment for Trading book funding cost and OthersReportedAdjusted1Adjustment for Trading book funding cost and OthersReportedAdjusted1Adjustment for Trading book funding cost and OthersReported
    $million$million$million$million$million$million$million$million$million
    Adjusted net interest income2,869(1,338)1,5312,797(1,216)1,5812,948(1,445)1,503
    Adjusted non-interest income3,0331,3384,3712,5821,2163,7981,9781,4453,423
    Total income5,902-5,9025,379-5,3794,926-4,926
    

1     Adjusted net interest income and adjusted non-interest income reflect specified reclassification between reported net interest income and reported non-interest income, including trading book funding cost, treasury currency management activities, interest from cash collateral from trading businesses and from prime services activities

 

Page 06

Financial review

Operating income by product


    Q1'26Q1'251ChangeConstant currency change²Q4'251ChangeConstant currency change²
    $million$million%%$million%%
    Transaction Services1,5121,529(1)(2)1,521(1)(1)
    Payments & Liquidity1,0371,063(2)(3)1,064(3)(3)
    Securities & Prime Services177151171817322
    Trade & Working Capital298315(5)(7)28455
    Global Banking66354621195472121
    Lending & Financial Solutions511450141148366
    Capital Markets & Advisory15296585964138140
    Global Markets1,1901,1821-6608079
    Wealth Solutions1,04377834326775454
    Investment Products77856039375534141
    Bancassurance2652182220124114111
    Deposits & Mortgages1,0171,022-(1)1,065(5)(5)
    CCPL & Other Unsecured Lending296269107320(8)(9)
    Treasury & Other18153nmnm1363343
    Total operating income5,9025,3791094,9262020
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

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 reported basis and comparisons are made to the equivalent period in 2025 on a constant currency basis, unless otherwise stated.

Transaction Services income decreased 2 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 3 per cent as the benefit from volume growth, disciplined pricing and passthrough rates management was more than offset by impact of lower interest rates and margin compression. Securities & Prime Services income grew 18 per cent due to higher custody balances and client volumes. Trade & Working Capital income was down 7 per cent reflecting the impact of portfolio optimisation actions.

Global Banking income grew 19 per cent, a record quarterly performance. Lending & Financial Solutions income grew 11 per cent as increased deal completion led to higher origination volumes. Capital Markets & Advisory fee income grew 59 per cent on the back of robust bond issuance fees.

Global Markets income was broadly flat. Flow income grew by 17 per cent with strong client activity in EM rates and FX products, as we continued to capture market opportunities across our footprint. Episodic income was softer due to strong prior year comparator.

Wealth Solutions income was up 32 per cent, a record quarterly performance, with 37 per cent growth in Investment Products from strong client activity across multiple asset classes while Bancassurance grew 20 per cent. Further, Affluent net-new money showed record momentum with inflows of $18 billion, mainly from higher Wealth Sales.

Deposits & Mortgages income was down 1 per cent. The benefit from higher Mortgages income was fully offset by lower deposit income. Mortgages income increased primarily from lower funding costs and higher volumes in a few select markets while deposits income dropped from margin compression following on from lower interest rates, albeit pricing and passthrough rates continued to be actively managed.

CCPL & Other Unsecured Lending income was up 7 per cent from lower funding costs and higher volumes in Digital banks more than offsetting the income headwinds from portfolio optimisation initiatives.

Treasury & Other increased by $128 million primarily from repricing of longer dated assets in treasury and a $65 million positive movement in debit valuation gains (DVA).

 

Page 07

Financial review continued

Profit before tax by client segment


    Q1'26Q1'251ChangeConstant currency change2Q4'251ChangeConstant currency change2
    $million$million%%$million%%
    Corporate & Investment Banking1,7271,666449089091
    Wealth & Retail Banking9816505150288nmnm
    Central & other items(258)(213)(21)(17)(382)3233
    Profit before taxation2,4502,1031717814nmnm
    

1  Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

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 a reported basis and comparisons are made to the equivalent period in 2025 on a constant currency basis, unless otherwise stated.

Corporate & Investment Banking (CIB) profit before taxation increased 4 per cent. Income grew 6 per cent with strong double-digit growth in Global Banking partly offset by a decrease in Transaction Services income. Expenses were 3 per cent higher and the credit impairment charge at $111 million was up $82 million primarily from precautionary management overlays relating to the Middle East conflict.

Wealth & Retail Banking (WRB) profit before taxation increased 50 per cent, with income up 13 per cent led by a record performance in Wealth Solutions. Expenses decreased 2 per cent as investment in affluent business growth initiatives and digital capabilities was part funded by efficiency saves. Credit impairment charge of $180 million was $8 million lower as precautionary management overlays were offset by portfolio de-risking actions.

Central & Other items (C&O) recorded a loss before tax of $258 million, $45 million higher than the prior year mainly from lower Ventures income and our share of losses in associates.

Adjusted net interest income and margin


    Q1'26Q1'25Change¹Q4'25Change¹
    $million$million%$million%
    Net interest income1,5311,581(3)1,5032
    Adjustment for trading book funding cost and others1,3381,216101,445(7)
    Adjusted net interest income22,8692,79732,948(3)
    Average interest-earning assets5566,911535,9996560,3111
    Average interest-bearing liabilities5613,179556,62910599,4392
    Gross yield (%)34.314.89(58)4.40(9)
    Rate paid (%)32.092.67582.167
    Net yield (%)32.222.22-2.24(2)
    Net interest margin (%)3,42.052.12(7)2.09(4)
    

1   Variance is better/(worse) other than assets and liabilities which is increase/(decrease)

2   Adjusted net interest income is net interest income less FX swap accounting asymmetry, as well as the funding costs adjustment for the trading book, cash collateral and prime services

3   Change is the basis points (bps) difference between the two periods rather than the percentage change

4   Adjusted net interest income divided by average interest-earning assets, annualised

5   Average interest-earning assets and interest-bearing liabilities are adjusted for cash collateral balances in other assets and other liabilities that are related to the Global Markets trading book

 

Adjusted net interest income, was up 3 per cent on reported basis year-on year. The benefit from higher volumes and improved mix was in part offset by the impact of lower rates and margins. Net interest margin was 7 basis points lower as the impact of falling rates and margin compression was partially offset by better liability mix.

Compared to the prior quarter, adjusted net interest income was down 3 per cent primarily from lower day count, the impact of lower interest rates and portfolio optimisation actions within WRB.

Average interest-earning assets were up 1 per cent on the prior quarter driven by growth in Wealth Lending within WRB and Global Banking and Trade within CIB. Gross yields decreased 9 basis points compared to the prior quarter reflecting a declining interest rate environment.

Average interest-bearing liabilities grew 2 per cent on the prior quarter from strong growth in customer accounts. The rate paid on liabilities decreased 7 basis points compared with the average in the prior quarter, reflecting the impact of interest rate movements partly offset by disciplined passthrough management and improved liability mix.

 

Page 08

Financial review continued

Credit risk summary

Income Statement View


    Q1'26Q1'251ChangeQ4'251Change
    $million$million%$million%
    Total credit impairment charge/(release)29621736148100
    Of which stage 1 and 22101118964228
    Of which stage 386106(19)842
    

1     Comparatives have been re-presented and underlying results are no longer reported, in accordance with the RNS titled "Re‑presentation of Financial Information" issued on 25 March 2026

Balance sheet


    31.03.2631.12.25Change131.03.25Change1
    $million$million%$million%
    Gross loans and advances to customers2297,639290,8492286,8124
    Of which stage 1280,670275,0622269,2824
    Of which stage 211,1549,8231411,447(3)
    Of which stage 35,8155,964(2)6,083(4)
    Expected credit loss provisions(4,078)(4,061)-(5,024)(19)
    Of which stage 1(544)(528)3(537)1
    Of which stage 2(463)(446)4(462)-
    Of which stage 3(3,071)(3,087)(1)(4,025)(24)
    Net loans and advances to customers293,561286,7882281,7884
    Of which stage 1280,126274,5342268,7454
    Of which stage 210,6919,3771410,985(3)
    Of which stage 32,7442,877(5)2,05833
    Cover ratio of stage 3 before/after collateral (%)353 / 7052 / 681 / 266 / 81(13) / (11)
    Credit grade 12 accounts ($million)1,1021,111(1)1,797(39)
    Early alerts ($million)45,0204,303174,45113
    Investment grade corporate exposures (%)37474-74-
    

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 $4,602 million (31 December 2025: $8,242 million and 31 March 2025: $6,797 million)

3     Change is the percentage points difference between the two points rather than the percentage change

4     Includes non-purely precautionary early alert balances

 

Asset quality remained resilient in the first quarter. The Group continues to actively manage the credit portfolio whilst remaining alert to a volatile and challenging external environment including the Middle East conflicts, energy and commodity price volatility and trade uncertainty, which has led to idiosyncratic stress in a select number of geographies and industry sectors.

The credit impairment charge of $296 million was up $79 million year-on-year and up $148 million compared to the prior quarter, representing an annualised loan-loss rate of 32 basis points (Q1 25: 25 basis points) including $190 million of charges from precautionary management overlays relating to the Middle East conflict. The non-linearity impact increased from the inclusion of a new downside scenario (in addition to the existing Bank Capital Stress test scenario) that considers a prolonged geopolitical crisis in the Middle East leading to sustained disruptions in energy supply and elevated global commodity prices together with an increase in the downside probability weightings as the likelihood of the downside scenarios materialising increased.  This reflects an increased probability weighting of the two downside scenarios from 41 per cent as of 31 December 2025 to 70 per cent while the base forecast probability weighting reduced from 59 per cent as of 31 December 2025 to 30 per cent (See page 22).  In addition, we have taken overlays in relation to the petrochemical sector and for potential sovereign downgrades.

In CIB, there was a net $111 million charge, up $82 million over prior year, as the increase from precautionary management overlays totalling $126 million were partially offset by releases and recoveries in other parts of the portfolio. WRB charges of $180 million were $8 million lower as precautionary management overlays of $34 million were more than fully offset by portfolio de-risking actions.

Gross stage 3 loans and advances to customers of $5.8 billion were 2 per cent lower, as repayments, client upgrades, reduction in exposures and write-offs more than offset new inflows. Credit-impaired loans represent 2.0 per cent of gross loans and advances, down 0.1 per cent on the prior quarter.  The Stage 2 balances increased by $1.3 billion primarily due to stage transfers of exposures impacted by the precautionary management overlays relating to the conflict in the Middle East.

 

Page 09

 

Financial review continued

The stage 3 cover ratio of 53 per cent increased 1 percentage point as compared to 31 December 2025, while the cover ratio post collateral at 70 per cent increased by 2 percentage points as gross stage 3 balances decreased more than the reduction in stage 3 provisions.

The total of Credit grade 12 balances at $1.1 billion remained flat with offsetting inflows and outflows. Early alert accounts of $5 billion increased by $0.7 billion since 31 December 2025 as downgrades relating to the Middle East conflicts was partly offset by repayments and migrations. The Group continues to carefully monitor its exposures, given the unusual stresses caused by the currently difficult geopolitical environment.

The proportion of investment grade corporate exposures remained stable at 74 per cent.

Balance sheet and liquidity


    31.03.2631.12.25Change¹31.03.25Change¹
    $million$million%$million%
    Assets
    Loans and advances to banks44,28943,901145,604(3)
    Loans and advances to customers293,561286,7882281,7884
    Other assets635,057589,2668547,05416
    Total assets972,907919,9556874,44611
    Liabilities
    Deposits by banks28,81930,846(7)28,5691
    Customer accounts542,223530,1612490,92110
    Other liabilities347,180304,36214302,48815
    Total liabilities918,222865,3696821,97812
    Equity54,68554,586-52,4684
    Total equity and liabilities972,907919,9556874,44611
    Advances-to-deposits ratio (%)²51.151.451.8
    Liquidity coverage ratio (%)151155147
    

1   Variance is increase/(decrease)comparing current reporting period to prior reporting periods

2  The Group excludes $11,854 million held with central banks (31.12.25: $8,474 million, 31.03.25: $15,847 million) that has been confirmed as repayable at the point of stress. Advances exclude reverse repurchase agreement and other similar secured lending of $4,602 million (31.12.25: $8,243 million, 31.03.25: $6,797 million) and include loans and advances to customers held at fair value through profit or loss of $11,590 million (31.12.25: $12,355 million, 31.03.25: $7,692 million). Deposits include customer accounts held at fair value through profit or loss of $22,379 million (31.12.25: $19,414 million, 31.03.25: $24,642 million)

 

The Group's balance sheet remains strong, liquid and well diversified.

Loans and advances to customers increased by $7 billion or 2 per cent from 31 December 2025. Excluding the $4 billion reduction from currency translation and $1 billion increase from Treasury and securities-based loans held to collect, the underlying growth was up $10 billion or 3.4 per cent. The underlying growth was primarily driven by strong execution of Global Banking pipeline and increased Trade volumes in CIB, as well as Wealth lending and Mortgages in WRB.

Customer accounts of $542 billion increased by $12 billion or 2 per cent from 31 December 2025. Excluding the $4 billion reduction from currency translation, customer accounts increased by $16 billion, or 3 per cent. This was primarily driven by a $10 billion increase in Transaction services CASA in CIB and $5 billion increase in WRB, primarily CASA.

Other assets increased $46 billion or 8 per cent, from 31 December 2025 with a $32 billion increase in derivative financial instruments, a $14 billion increase in financial assets held at fair value through profit or loss, primarily in reverse repurchase agreements and an $11 billion increase in in other financial assets held at amortised cost mainly unsettled trades. This increase was partly offset by a $8 billion reduction in investment securities and a $6 billion reduction in cash and balances with Central banks.

Other liabilities increased 14 per cent or $43 billion, from 31 December 2025 with a $31 billion increase in derivative balances mainly mark to market movements and higher volumes and a $13 billion increase in other financial liabilities held at amortised cost primarily unsettled trade payables from investment securities and cash collateral. This was partly offset by a decrease of $1 billion in financial liabilities held at fair value through profit and loss.

The advances-to-deposits ratio decreased to 51.1 per cent from 51.4 per cent as at 31 December 2025. The point-in-time liquidity coverage ratio decreased 4 percentage point in the quarter to 151 per cent and remains well above the minimum regulatory requirement of 100 per cent.

 

Page 10

Financial review continued

Risk-weighted assets


    31.03.2631.12.25Change¹31.03.25Change¹
    $million$million%$million%
    By risk type
    Credit risk197,432192,1453184,2747
    Operational risk35,11135,223-32,5788
    Market risk33,64330,6631036,744(8)
    Total RWAs266,186258,0313253,5965
    

1     Variance is increase/(decrease) comparing current reporting period to prior reporting periods

 

Total risk-weighted assets of $266 billion increased $8.2 billion or 3 per cent from 31 December 2025.

•   Credit risk RWA at $197 billion increased by $5.3 billion as compared to 31 December 2025. The increase was driven by asset growth and mix of $6.8 billion mainly in CIB, $0.4 billion increase from methodology and asset quality changes. This increase was partly offset by a $1.9 billion reduction from currency translation.

•   Operational risk RWA remain broadly unchanged during the quarter as the Group is now performing the annual operational risk RWA computation in the fourth quarter of the year rather than the first quarter.

•   Market risk RWA increased $3 billion to $33.6 billion as increases in VaR, stress VaR and Specific Interest Rate Risk in CIB were partly offset by actions taken to reduce our Structural FX position in C&O.

Capital base and ratios


    31.03.2631.12.25Change¹31.03.25Change¹
    $million$million%$million%
    CET1 capital35,61636,440(2)35,1221
    Additional Tier 1 capital (AT1)8,0917,50987,5078
    Tier 1 capital43,70743,949(1)42,6293
    Tier 2 capital9,0529,278(2)10,482(14)
    Total capital52,75953,227(1)53,111(1)
    CET1 capital ratio(%)²13.414.1(74)13.8(47)
    Total capital ratio(%)²19.820.6(81)20.9(112)
    Leverage ratio (%)²4.64.7(10)4.7(10)
    

1     Variance is increase/(decrease) comparing current reporting period to prior reporting periods

2     Change is the basis points (bps) difference between the two periods rather than the percentage change

 

The Group's CET1 ratio of 13.4 per cent dropped 74 basis points compared to 31 December 2025 as underlying profit accretion was offset by increased RWAs and the full 58 basis points impact of the $1.5 billion share buyback announced in February 2026. The CET1 ratio remains 3.1 percentage points above the Group's latest regulatory minimum.

The 74 basis points of CET1 capital accretion from profits was offset by 51 basis points impact from an increase in RWA and 24 basis points reduction from other comprehensive income from fair value gains, regulatory capital adjustments and FX impact.

The Group is part way through the $1.5 billion share buyback programme which it announced on 24 February 2026, and by 31 March 2026 had spent $471 million purchasing 22 million ordinary shares, reducing the share count by approximately 0.96 per cent. Even though the share buyback was still ongoing on 31 March 2026, the entire $1.5 billion is deducted from CET1 in the period resulting in a 58 basis point reduction.

The Group is accruing a provisional interim 2026 ordinary share dividend, which is calculated formulaically at one-third of the ordinary dividend paid in 2025 or 61 cents a share. Half of this amount was accrued in the first quarter and combined with payments due to AT1 and preference shareholders reduced the CET1 ratio by 15 basis points.

The Group's leverage ratio of 4.6 per cent is 10 basis points lower than as of 31 December 2025. The reduction from lower Tier 1 capital and increased leverage exposures was partly offset by issuance of AT1 instruments in the first quarter. The Group's leverage ratio remains significantly above its minimum requirement of 3.7 per cent.

Page 11

Supplementary financial information

Performance by client segment


    Q1'26Q1'25¹
    Corporate & Investment BankingWealth & Retail BankingCentral &
     other items    		TotalCorporate & Investment BankingWealth & Retail BankingCentral &
     other items    		Total
    $million$million$million$million$million$million$million$million
    Operating income3,5522,456(106)5,9023,3172,140(78)5,379
    External3,4451,2481,2095,9023,1691,0081,2025,379
    Inter-segment1071,208(1,315)-1481,132(1,280)-
    Operating expenses(1,714)(1,295)(131)(3,140)(1,624)(1,291)(131)(3,046)
    Operating profit/(loss) before impairment losses and taxation1,8381,161(237)2,7621,693849(209)2,333
    Credit impairment(111)(180)(5)(296)(29)(188)-(217)
    Other impairment--(2)(2)1(11)(5)(15)
    Profit/(loss) from associates and joint ventures--(14)(14)1-12
    Profit/(loss) before taxation1,727981(258)2,4501,666650(213)2,103
    Total assets582,361136,663253,883972,907494,084129,464250,898874,446
    Loans and advances to customers (incl FVTPL & reverse repos)2210,781129,89516,712357,388203,757122,50518,369344,631
    Loans and advances to customers (excl FVTPL & reverse repos)2146,985129,89216,684293,561140,920122,49918,369281,788
    Total liabilities541,130266,791110,301918,222485,267233,214103,497821,978
    Customer accounts (incl FVTPL & repos)326,587262,5053,953593,045319,507229,2265,385554,118
    Risk-weighted assets190,55957,88117,746266,186175,20357,96120,432253,596
    Income return on risk-weighted assets (%)7.717.0(2.0)9.07.715.3(1.5)8.6
    Return on tangible equity (%)18.935.1(43.9)17.418.822.3(30.6)14.8
    Cost to income ratio (%)48.352.7nm53.249.060.3nm56.6
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

2     FVTPL includes reverse repurchase agreements of Q1'26: $52,237 million and Q1'25: $55,151 million

 

Page 12

Supplementary financial information continued

All commentary that follows is on reported basis and comparisons are made to the equivalent period in 2025 on a constant currency basis, unless otherwise stated.

Corporate & Investment Banking


    Q1'26Q1'253Change1Constant currency change1,2Q4'253Change1Constant currency change1,2
    $million$million%%$million%%
    Transaction Services1,5121,529(1)(2)1,521(1)(1)
    Payments & Liquidity1,0371,063(2)(3)1,064(3)(3)
    Securities & Prime Services177151171817322
    Trade & Working Capital298315(5)(7)28455
    Global Banking66354621195472121
    Lending & Financial Solutions511450141148366
    Capital Market & Advisory15296585964138140
    Global Markets1,1901,1821-6608079
    Treasury & Other18760nmnm1067678
    Operating income3,5523,317762,8342525
    Operating expenses(1,714)(1,624)(6)(3)(1,970)1314
    Operating profit before impairment losses and taxation1,8381,69399864113114
    Credit impairment(111)(29)nmnm46nmnm
    Other impairment-1--(2)--
    Profit from associates and joint ventures-1-----
    Profit before taxation1,7271,666449089091
    Total assets582,361494,0841818516,7421313
    Loans and advances to customers (incl FVTPL & reverse repos)6210,781203,75732205,49333
    Loans and advances to customers (excl FVTPL & reverse repos)6146,985140,9204nm142,6983nm
    Total liabilities541,130485,2671211491,9201011
    Customer accounts (incl FVTPL & repos)326,587319,50722319,67023
    Risk-weighted assets190,559175,2039nm175,7848nm
    Income return on risk-weighted assets (%)⁴7.77.7-nm6.3140bpsnm
    Return on tangible equity (%)⁴18.918.810bpsnm8.91,000bpsnm
    Cost to income ratio (%)⁵48.349.00.71.369.521.221.5
    

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     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

4     Change is the basis points (bps) difference between the two periods rather than the percentage change

5     Change is the percentage points difference between the two periods rather than the percentage change

6     FVTPL includes reverse repurchase agreements of Q1'26: $52,237 million, Q1'25: $55,151 million and Q4'25: $50,443 million

 

Page 13

Supplementary financial information continued

Performance highlights

•   Profit before tax of $1,727 million increased 4 per cent year-on-year driven by higher income, partially offset by higher operating expenses and higher credit impairment.

•   Operating income of $3,552 million increased by 6 per cent primarily driven by strong performance in Global Banking, which grew 19 per cent on the back of growth in loan origination volumes and strong debt capital markets activity, reflecting effective execution of the deal pipeline.

Global Markets was broadly flat. Flow income grew by 17 per cent with strong client activity across products, as we continued to capture market opportunities across our footprint, but this was offset by softer episodic income due to strong prior year comparator.

Transaction Services income decreased 2 per cent as continued growth in Securities & Prime Services was more than offset by lower Trade & Working Capital and Payments & Liquidity income. Securities & Prime Services increased 18 per cent, supported by higher custody balances and client volumes. Trade & Working Capital income was down 7 per cent reflecting portfolio optimisation actions in the trade portfolio and margin compression. Payments & Liquidity income decreased 3 per cent, as the benefit from volume growth, disciplined pricing and passthrough rates management was more than offset by impact of lower interest rates.

•   Operating expenses increased 3 per cent, largely due to investment in strategic growth initiatives.

•   Credit impairment was a net charge of $111 million driven by a precautionary management overlay relating to the conflict in Middle East, partially offset by releases.

•   RWAs of $190.6 billion increased $14.8 billion since 31 December 2025, with higher credit and market RWA.  The increase in credit RWA was driven by business growth and higher derivatives Mark-to-Market. Growth of market RWA tends to be seasonal, with December usually seeing a decrease due to lower market activity and inventory levels which is then reversed as client activity levels recover in the first quarter.

 

Page 14

Supplementary financial information continued

Wealth & Retail Banking


    Q1'26Q1'253Change1Constant currency change1,2Q4'253Change1Constant currency change1,2
    $million$million%%$million%%
    Wealth Solutions1,04377834326775454
    Investment Products77856039375534141
    Bancassurance2652182220124114111
    Deposits & Mortgages1,0171,022-(1)1,065(5)(5)
    CCPL & Other Unsecured Lending296269107320(8)(9)
    Treasury & Other100714132684752
    Operating income2,4562,14015132,1301515
    Operating expenses(1,295)(1,291)-2(1,662)2222
    Operating profit before impairment losses and taxation1,1618493736468148148
    Credit impairment(180)(188)46(181)11
    Other impairment-(11)1001001(100)nm
    Profit before taxation9816505150288nmnm
    Total assets136,663129,46465137,211-1
    Loans and advances to customers (incl FVTPL & reverse repos)129,895122,50566129,638-2
    Loans and advances to customers (excl FVTPL & reverse repos)129,892122,4996nm129,636-nm
    Total liabilities266,791233,2141414262,40722
    Customer accounts (incl FVTPL & repos)262,505229,2261514257,80623
    Risk-weighted assets57,88157,961-nm59,307(2)nm
    Income return on risk-weighted assets (%)⁴17.015.3170bpsnm14.7230bpsnm
    Return on tangible equity (%)⁴35.122.31,280bpsnm5.7nmnm
    Cost to income ratio (%)⁵52.760.37.67.878.025.325.3
    

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     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

4     Change is the basis points (bps) difference between the two periods rather than the percentage change

5     Change is the percentage points difference between the two periods rather than the percentage change

 

Performance highlights

•   Profit before tax of $981 million, increased by 50 per cent, predominantly driven by higher income.

•   Operating income of $2,456 million grew 13 per cent primarily driven by a record quarter in Wealth Solutions, up 32 per cent, with broad-based growth across markets and products. This growth was supported by $18 billion of affluent net new money and 73 thousand affluent new-to-bank clients onboarded in the first quarter of 2026. CCPL & Other Unsecured Lending increased 7 per cent, from lower funding costs and higher volumes in Digital banks. Deposits & Mortgages decreased 1 per cent, reflecting rate-driven pressures from lower benchmark interest rates, partially offset by volume growth and proactive pricing actions.

•   Operating expenses decreased by 2 per cent as investment in affluent business growth initiatives, including the strategic hiring of affluent relationship managers and uplifting digital capabilities, was part-funded through efficiency initiatives on branches, off-strategy products and client segments.

•   Credit impairment charge decreased by $8 million to $180 million, primarily driven by optimisation actions in the unsecured lending portfolio, partly offset by a precautionary management overlay relating to the conflict in Middle East.

•   RWAs reduced by $1.4 billion to $57.9 billion since December 2025 primarily due to optimisation actions reducing Unsecured Lending portfolios, partially offset by increase in Wealth Lending and Mortgages reflecting growth in asset balances.

 

Page 15

Supplementary financial information continued

Central & other items


    Q1'26Q1'253Change1Constant currency change1,2Q4'253Change1Constant currency change1,2
    $million$million%%$million%%
    Treasury & Other(106)(78)(36)(24)(38)(179)(144)
    Operating income(106)(78)(36)(24)(38)(179)(144)
    Operating expenses(131)(131)-4(281)5354
    Operating loss before impairment losses and taxation(237)(209)(13)(7)(319)2627
    Credit impairment(5)-nmnm(13)6258
    Other impairment(2)(5)6033(23)9191
    Profit/(loss) from associates and joint ventures(14)1nmnm(27)4850
    Loss before taxation(258)(213)(21)(17)(382)3233
    Total assets253,883250,89811266,002(5)(4)
    Loans and advances to customers (incl FVTPL & reverse repos)16,71218,369(9)(8)14,4551616
    Loans and advances to customers (excl FVTPL & reverse repos)16,68418,369(9)nm14,45415nm
    Total liabilities110,301103,49777111,042(1)-
    Customer accounts (incl FVTPL & repos)3,9535,385(27)(21)7,698(49)(47)
    Risk-weighted assets17,74620,432(13)nm22,940(23)nm
    Income return on risk-weighted assets (%)⁴(2.0)(1.5)(50)bpsnm(0.6)(140)bpsnm
    Return on tangible equity (%)⁴(43.9)(30.6)(1,333)bpsnm(20.6)nmnm
    Cost to income ratio (%)⁵nmnmnmnmnmnmnm
    

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     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

4     Change is the basis points (bps) difference between the two periods rather than the percentage change

5     Change is the percentage points difference between the two periods rather than the percentage change

 

Performance highlights

•   Loss before taxation of $258 million higher by 17 per cent compared to prior year. The increase in operating losses was primarily a combination of lower income, and lower share of profit from associates and joint ventures.

•   Operating loss increased by 24 per cent year-on-year to $106 million primarily from lower income in SC Ventures.

•   The loss from associates and joint ventures primarily relates to investments within SC Ventures while the reduced profit year-on-year mainly stems from the lower share of profits from associates.

 

Page 16

Supplementary financial information continued

Performance by key market


    Q1'26
    Hong KongKoreaChinaTaiwanSingaporeIndiaUAEUKUSOtherGroup2
    $million$million$million$million$million$million$million$million$million$million$million
    Operating income1,5142722341617704213567402921,1425,902
    Operating expenses(596)(179)(201)(82)(505)(220)(163)(360)(181)(653)(3,140)
    Operating profit before impairment losses and taxation9189333792652011933801114892,762
    Credit impairment(73)(34)3(1)(70)(1)(14)(1)(5)(100)(296)
    Other impairment----(1)----(1)(2)
    Profit/(loss) from associates and joint ventures----(3)--(8)-(3)(14)
    Profit before taxation8455936781912001793711063852,450
    Total assets employed222,35551,71350,91921,878128,35537,08322,361286,08953,35198,803972,907
    Loans and advances to customers (incl FVTPL & reverse repos)292,76427,64114,90211,34268,78112,34010,03259,68624,84935,051357,388
    Loans and advances to customers (excl FVTPL & reverse repos)276,87927,63914,05111,24065,97411,5739,77720,97024,45331,005293,561
    Total liabilities employed218,95245,08743,05619,773118,74529,11923,369279,25052,12588,746918,222
    Customer accounts (incl FVTPL & repos)188,11134,21036,90818,278105,84016,02420,14884,83122,15566,540593,045
    Customer accounts (excl FVTPL & repos)182,13832,18329,36018,260105,10515,78320,06451,43122,10565,793542,222
    

 


    Q1'251
    Hong KongKoreaChinaTaiwanSingaporeIndiaUAEUKUSOtherGroup2
    $million$million$million$million$million$million$million$million$million$million$million
    Operating income1,3742613491557283993034903101,0105,379
    Operating expenses(585)(188)(199)(82)(421)(231)(126)(439)(167)(608)(3,046)
    Operating profit before impairment losses and taxation7897315073307168177511434022,333
    Credit impairment(89)(18)(35)(11)(24)(7)3(7)(2)(27)(217)
    Other impairment(5)1(4)(2)(3)(1)---(1)(15)
    Profit/(loss) from associates and joint ventures--34-1--(27)-(6)2
    Profit before taxation16955614560281160180171413682,103
    Total assets employed203,56550,03343,48521,235108,87836,05921,987241,55763,88183,766874,446
    Loans and advances to customers (incl FVTPL & reverse repos)286,20028,45715,11911,48364,68914,3447,78765,53921,27029,743344,631
    Loans and advances to customers (excl FVTPL & reverse repos)271,10528,45413,87311,00763,52313,9267,51922,95120,96828,462281,788
    Total liabilities employed201,39641,50134,61517,352102,86627,63618,273255,10446,93776,298821,978
    Customer accounts (incl FVTPL & repos)175,76631,35328,67016,10293,04719,56215,68397,10718,90257,926554,118
    Customer accounts (excl FVTPL & repos)167,54329,64423,33516,10292,58018,49715,63351,43418,80257,351490,921
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

2     FVTPL includes reverse repurchase agreements of Q1'26: $52,237 million and Q1'25: $55,151 million

 

Page 17

Supplementary financial information continued

 


    Q4'251
    Hong KongKoreaChinaTaiwanSingaporeIndiaUAEUKUSOtherGroup2
    $million$million$million$million$million$million$million$million$million$million$million
    Operating income1,3562481891376474702423742869774,926
    Operating expenses(701)(370)(214)(94)(591)(269)(196)(556)(198)(724)(3,913)
    Operating profit/(loss) before impairment losses and taxation655(122)(25)435620146(182)882531,013
    Credit impairment(16)(22)(7)(1)(35)(24)14(13)-(44)(148)
    Other impairment(1)-(1)-(15)(2)-(2)(1)(2)(24)
    Profit/(loss) from associates and joint ventures--(5)-(4)--(4)-(14)(27)
    Profit/(loss) before taxation1638(144)(38)42217560(201)87193814
    Total assets employed217,29151,35050,18821,875123,61032,75022,065243,01663,35094,460919,955
    Loans and advances to customers (incl FVTPL & reverse repos)289,64129,08914,35811,90565,08312,2868,71560,51924,93833,052349,586
    Loans and advances to customers (excl FVTPL & reverse repos)274,50629,08713,09111,43762,38211,9518,31321,85724,60529,559286,788
    Total liabilities employed218,19044,05543,43519,203113,76224,73620,467244,93252,60583,984865,369
    Customer accounts (incl FVTPL & repos)187,75334,17736,69217,722100,59816,33317,87386,85222,54164,633585,174
    Customer accounts (excl FVTPL & repos)180,66332,20429,63317,72299,83014,91117,63150,73522,39164,441530,161
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

2     FVTPL includes reverse repurchase agreements of Q4'25: $50,443 million

Quarterly operating income by product


    Q1'26Q4'25¹Q3'25¹Q2'25¹Q1'25¹Q4'24¹Q3'24¹Q2'24¹
    $million$million$million$million$million$million$million$million
    Transaction Services1,5121,5211,4901,4711,5291,6671,5751,594
    Payments & Liquidity1,0371,0641,0181,0151,0631,1931,1151,141
    Securities & Prime Services177173166158151161156153
    Trade & Working Capital298284306298315313304300
    Global Banking663547588548546501479493
    Lending & Financial Solutions511483496476450435411427
    Capital Markets & Advisory15264927296666866
    Global Markets1,1906608471,1751,182770837798
    Wealth Solutions1,043677890742778563695619
    Investment Products778553691544560453508445
    Bancassurance265124199198218110187174
    Deposits & Mortgages1,0171,0651,0431,0041,0221,0791,0691,054
    CCPL & Other Unsecured Lending296320309313269295304290
    Treasury & Other181136(57)27453(73)(9)(187)
    Total operating income5,9024,9265,1105,5275,3794,8024,9504,661
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

 

Page 18

Supplementary financial information continued

Earnings per ordinary share


    Q1'26Q1'251ChangeQ4'251Change
    $million$million%$million%
    Profit for the period attributable to equity holders1,9101,59220473nm
    Non-controlling interest(10)(2)nm3nm
    Dividend payable on preference shares and AT1 classified as equity(240)(233)(3)(11)nm
    Profit for the period attributable to ordinary shareholders1,6601,35722465nm
    Basic - Weighted average number of shares (millions)2,2382,396(7)2,274(2)
    Diluted - Weighted average number of shares (millions)2,3052,464(6)2,351(2)
    Basic earnings per ordinary share (cents)74.256.63120.4nm
    Diluted earnings per ordinary share (cents)72.055.13119.8nm
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re‑presentation of Financial Information" issued on 25 March 2026

Return on Tangible Equity


    Q1'26Q1'252ChangeQ4'252Change
    $million$million%$million%
    Average parent company Shareholders' Equity46,34644,474446,422-
    Less Average preference share capital and share premium(1,494)(1,494)-(1,494)-
    Less Average intangible assets(6,250)(5,815)(7)(6,188)(1)
    Average Ordinary Shareholders' Tangible Equity38,60237,165438,740-
    Profit for the period attributable to equity holders1,9101,59220473nm
    Non-controlling interests(10)(2)nm3nm
    Dividend payable on preference shares and AT1 classified as equity(240)(233)(3)(11)nm
    Profit for the period attributable to ordinary shareholders1,6601,35722465nm
    Return on tangible equity117.4%14.8%260bps4.8%1,260bps
    

1     Change is the basis points (bps) difference between the two periods rather than the percentage change

2     Comparatives have been re-presented in accordance with the RNS titled "Re‑presentation of Financial Information" issued on 25 March 2026

Net Tangible Asset Value per Share


    Q1'26Q1'25ChangeFY'25Change
    $million$million%$million%
    Parent company shareholders' equity46,09744,559346,593(1)
    Less Preference share capital and share premium(1,494)(1,494)-(1,494)-
    Less Intangible assets(6,268)(5,838)(7)(6,231)(1)
    Net shareholders tangible equity38,33537,227338,868(1)
    Ordinary shares in issue, excluding own shares (millions)2,2292,384(7)2,247(1)
    Net Tangible Asset Value per share (cents)1,7201,561101,730(1)
    

 

Page 19

Risk review

Credit quality by client segment


    31.03.26
    Customers
    BanksCorporate & Investment BankingWealth &
    Retail
    Banking    		Central &
     other items    		Customer
     Total    		Undrawn commitmentsFinancial Guarantees
    Amortised cost$million$million$million$million$million$million$million
    Stage 143,828137,315127,40215,953280,670194,025108,515
    •  Strong31,32997,166122,19415,300234,660173,33862,647
    •  Satisfactory12,49940,1495,20865346,01020,68745,868
    Stage 23988,3222,08974311,1543,2631,976
    •  Strong431,9791,592-3,571442504
    •  Satisfactory3535,2431637436,1492,6331,409
    •  Higher risk21,100334-1,43418863
    Of which (stage 2):
    •  Less than 30 days past due-29163-192--
    •  More than 30 days past due39334-343--
    Stage 3, credit-impaired financial assets843,9871,82625,81514536
    Gross balance¹44,310149,624131,31716,698297,639197,302111,027
    Stage 1(14)(154)(378)(12)(544)(56)(38)
    •  Strong(5)(18)(331)(12)(361)(29)(13)
    •  Satisfactory(9)(136)(47)-(183)(27)(25)
    Stage 2(1)(339)(124)-(463)(71)(16)
    •  Strong(1)(13)(86)-(99)(26)(1)
    •  Satisfactory-(174)(11)-(185)(39)(12)
    •  Higher risk-(152)(27)-(179)(6)(3)
    Of which (stage 2):
    •  Less than 30 days past due-(2)(11)-(13)--
    •  More than 30 days past due--(27)-(27)--
    Stage 3, credit-impaired financial assets(6)(2,146)(923)(2)(3,071)(3)(95)
    Total credit impairment(21)(2,639)(1,425)(14)(4,078)(130)(149)
    Net carrying value44,289146,985129,89216,684293,561
    Stage 10.0%0.1%0.3%0.1%0.2%0.0%0.0%
    •  Strong0.0%0.0%0.3%0.1%0.2%0.0%0.0%
    •  Satisfactory0.1%0.3%0.9%0.0%0.4%0.1%0.1%
    Stage 20.3%4.1%5.9%0.0%4.2%2.2%0.8%
    •  Strong2.3%0.7%5.4%0.0%2.8%5.9%0.2%
    •  Satisfactory0.0%3.3%6.7%0.0%3.0%1.5%0.9%
    •  Higher risk0.0%13.8%8.1%0.0%12.5%3.2%4.8%
    Of which (stage 2):
    •  Less than 30 days past due0.0%6.9%6.7%0.0%6.8%0.0%0.0%
    •  More than 30 days past due0.0%0.0%8.1%0.0%7.9%0.0%0.0%
    Stage 3, credit-impaired financial assets (S3)7.1%53.8%50.5%100.0%52.8%21.4%17.7%
    •  Stage 3 Collateral-299683-982-90
    •  Stage 3 Cover ratio (after collateral)7.1%61.3%88.0%100.0%69.7%21.4%34.5%
    Cover ratio0.0%1.8%1.1%0.1%1.4%0.1%0.1%
    Fair value through profit or loss
    Performing42,03063,78132863,812--
    •  Strong33,27536,52032836,551--
    •  Satisfactory8,75527,261--27,261--
    •  Higher risk-------
    Impaired (CG13-14)14715--15--
    Gross balance (FVTPL)242,17763,79632863,827--
    Net carrying value (incl FVTPL)86,466210,781129,89516,712357,388--
    

1     Loans and advances includes reverse repurchase agreements and other similar secured lending of $4,602 million under Customers and of $3,824 million under Banks, held at amortised cost

2     Loans and advances includes reverse repurchase agreements and other similar secured lending of $52,237 million under Customers and of $40,042 million under Banks, held at fair value through profit or loss

 

Page 20

 

Risk review continued

 


    31.12.251
    Customers
    BanksCorporate & Investment BankingWealth &
     Retail
     Banking    		Central &
     other items    		Customer TotalUndrawn commitmentsFinancial Guarantees
    Amortised cost$million$million$million$million$million$million$million
    Stage 143,608132,772127,30614,984275,062195,032112,091
    •  Strong31,25794,399121,97914,228230,606176,12367,184
    •  Satisfactory12,35138,3735,32775644,45618,90944,907
    Stage 22177,8591,964-9,8234,2081,511
    •  Strong421,7671,453-3,2201,340351
    •  Satisfactory1724,984162-5,1462,6621,052
    •  Higher risk31,108349-1,457206108
    Of which (stage 2):
    •  Less than 30 days past due-86162-248--
    •  More than 30 days past due3158349-507--
    Stage 3, credit-impaired financial assets904,2011,76125,9645591
    Gross balance243,915144,832131,03114,986290,849199,245114,193
    Stage 1(6)(128)(388)(12)(528)(49)(26)
    •  Strong(2)(59)(343)(12)(414)(28)(12)
    •  Satisfactory(4)(69)(45)-(114)(21)(14)
    Stage 2(1)(310)(136)-(446)(33)(16)
    •  Strong(1)(4)(92)-(96)(4)-
    •  Satisfactory-(217)(15)-(232)(20)(9)
    •  Higher risk-(89)(29)-(118)(9)(7)
    Of which (stage 2):
    •  Less than 30 days past due-(9)(15)-(24)--
    •  More than 30 days past due-(1)(29)-(30)--
    Stage 3, credit-impaired financial assets(7)(2,214)(871)(2)(3,087)(2)(98)
    Total credit impairment(14)(2,652)(1,395)(14)(4,061)(84)(140)
    Net carrying value43,901142,180129,63614,972286,788
    Stage 10.0%0.1%0.3%0.1%0.2%0.0%0.0%
    •  Strong0.0%0.1%0.3%0.1%0.2%0.0%0.0%
    •  Satisfactory0.0%0.2%0.8%0.0%0.3%0.1%0.0%
    Stage 20.5%3.9%6.9%0.0%4.5%0.8%1.1%
    •  Strong2.4%0.2%6.3%0.0%3.0%0.3%0.0%
    •  Satisfactory0.0%4.4%9.3%0.0%4.5%0.8%0.9%
    •  Higher risk0.0%8.0%8.3%0.0%8.1%4.4%6.5%
    Of which (stage 2):
    •  Less than 30 days past due0.0%10.5%9.3%0.0%9.7%0.0%0.0%
    •  More than 30 days past due0.0%0.6%8.3%0.0%5.9%0.0%0.0%
    Stage 3, credit-impaired financial assets7.8%52.7%49.5%100.0%51.8%40.0%16.6%
    •  Stage 3 Collateral-314678-992-56
    •  Stage 3 Cover ratio (after collateral)7.8%60.2%88.0%100.0%68.4%40.0%26.1%
    Cover ratio0.0%1.8%1.1%0.1%1.4%0.0%0.1%
    Fair value through profit or loss
    Performing36,58062,7803-62,783--
    •  Strong28,27739,3513-39,354--
    •  Satisfactory8,30323,429--23,429--
    •  Higher risk-------
    Impaired (CG13-14)9214--14--
    Gross balance (FVTPL)336,67262,7943-62,797--
    Net carrying value (incl FVTPL)80,573204,974129,63914,972349,585--
    

1     Comparatives have been re-presented in accordance with RNS titled "Re-Presentation of Financial Information" issued on 25 March 2026

2     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

3     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

 

Page 21

Risk review continued

Credit impairment charge


    3 months ended 31.03.263 months ended 31.03.251
    Stage 1 & 2Stage 3TotalStage 1 & 2Stage 3Total
    $million$million$million$million$million$million
    Corporate & Investment Banking149(38)11157(28)29
    Wealth & Retail Banking5512518054134188
    Central & other items6(1)5---
    Total credit impairment charge/(release)21086296111106217
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re-Presentation of Financial Information" issued on 25 March 2026 with no change to the total credit impairment charge

 

 Impact of multiple economic scenarios

The total amount of ECL non-linearity has primarily been estimated by assigning probability weights of 30 per cent, 45 per cent and 25 per cent respectively to the Base Forecast, 'Sustained Middle East Conflict', and 'Bank Capital Stress Test' scenarios which are presented below.

At 31 December 2025, the total amount of non-linearity was primarily estimated by assigning probability weights of 59 per cent, 26 per cent and 15 per cent respectively to the Base Forecast, 'Market Correction', and 'Bank Capital Stress Test' scenarios set out in the 2025 Annual Report.

The total amount of non-linearity at 31 March 2026 is $196 million (31 December 2025: $113 million). The CIB and Central and other items portfolio accounted for $130 million (31 December 2025: $79 million) of the calculated non-linearity, with the remaining $66 million (31 December 2025: $34 million) attributable to WRB which also includes an adjustment of $21 million (31 December 2025: $12 million) primarily to incorporate non-linearity for portfolios under a loss rate approach.

The 'Sustained Middle East Conflict' scenario explores a modest escalation in Q2 2026 and more prolonged period of heightened tensions across the region, leading to sustained oil price pressures from supply disruption, with global GDP only returning to baseline growth in year 3 of the scenario. The 'Bank Capital Stress Test' scenario is characterised by a synchronised and severe downturn across all key markets, global supply side disruptions (including tariffs) and significantly higher commodity prices, inflation and interest rate environment. 

The tables below set out the key parameters of the Base Forecast and the two scenarios which were generated in the first half of March 2026. The geopolitical and economic landscape in the Middle East remains highly fluid and volatile, with forecast and scenarios subject to change based on unfolding events.

 


    BaseSustained Middle East ConflictBank Capital Stress Test
    Five year averagePeak/TroughFive year averagePeak/TroughFive year averagePeak/Trough
    China GDP4.34.7 / 3.84.04.7 / 2.63.35.0 / (1.3)
    China unemployment3.33.4 / 3.33.53.8 / 3.34.45.0 / 3.6
    China property prices0.12.5 / (2.5)(0.5)2.7 / (4.4)(3.9)11 .0/ (12.1)
    Hong Kong GDP2.53.5 / 2.02.02.8 / 0.20.73.6 / (6.9)
    Hong Kong unemployment3.33.6 / 3.23.84.8 / 3.26.78.2 / 4.2
    Hong Kong property prices4.24.9 / 3.33.44.4 / 1.8(3.1)7.8 / (10.0)
    US GDP2.02.4 / 1.71.72.0 / 0.40.21.5 / (3.6)
    Singapore GDP2.54.1 / 0.51.93.8 / (1.9)0.93.7 / (6.0)
    India GDP6.67.2 / 6.06.07.1 / 3.95.06.5 / 0.4
    Korea GDP1.92.4 / 1.61.42.0 / (0.5)0.73.2 / (4.3)
    UAE GDP3.85.4 / 2.83.24.7 / 1.02.74.7 / (0.2)
    Crude oil70.976 / 6589.3135.7 / 70111.4150.5 / 81.9
    

 

 

Period covered from Q2 2026 to Q1 2031


    Base (GDP, YoY%)Sustained Middle East ConflictDifference from Base
    202620272028202920302026202720282029203020262027202820292030
    China4.64.54.54.34.03.93.44.64.34.0(0.7)(1.0)0.0(0.0)(0.1)
    Hong Kong3.22.52.52.42.12.11.12.52.42.1(1.0)(1.4)(0.0)0.0(0.0)
    US2.32.12.02.02.01.51.12.02.01.9(0.8)(1.1)(0.0)0.0(0.0)
    Singapore3.22.92.52.32.62.00.92.72.22.6(1.3)(2.0)0.2(0.1)(0.0)
    India7.07.06.56.26.15.06.06.56.26.1(2.0)(1.0)(0.0)0.00.0
    Korea2.01.81.81.81.91.00.51.81.91.9(1.1)(1.4)(0.0)0.0(0.0)
    UAE5.04.04.03.73.13.82.24.03.73.0(1.3)(1.8)0.00.0(0.1)
    

Each year is from Q1 to Q4. For example 2026 is from Q1 2026 to Q4 2026.

Page 22

 

Risk review continued

 


    Base (GDP, YoY%)Bank Capital Stress TestDifference from Base
    202620272028202920302026202720282029203020262027202820292030
    China4.64.54.54.34.02.4(0.1)4.54.94.7(2.2)(4.6)(0.1)0.60.7
    Hong Kong3.22.52.52.42.1(0.3)(5.2)2.23.33.5(3.5)(7.7)(0.3)1.01.4
    US2.32.12.02.02.00.5(2.6)1.11.31.2(1.8)(4.7)(0.9)(0.7)(0.8)
    Singapore3.22.92.52.32.60.8(4.3)1.83.33.6(2.5)(7.3)(0.7)1.01.0
    India7.07.06.56.26.14.42.26.36.16.2(2.5)(4.8)(0.2)(0.1)0.1
    Korea2.01.81.81.81.9(0.2)(2.7)2.42.02.3(2.2)(4.6)0.60.10.3
    UAE5.04.04.03.73.13.50.23.24.23.4(1.6)(3.8)(0.8)0.50.3
    

Each year is from Q1 to Q4. For example 2026 is from Q1 2026 to Q4 2026        

 

Page 23

Capital review

Capital ratios


    31.03.2631.12.25Change 131.03.25Change 1
    CET113.4%14.1%(74)13.8%(47)
    Tier 1 capital16.4%17.0%(61)16.8%(39)
    Total capital19.8%20.6%(81)20.9%(112)
    

Capital base2


    31.03.2631.12.25Change 331.03.25Change 3
    $million$million%$million%
    CET1 instruments and reserves
    Capital instruments and the related share premium accounts5,1055,120-5,181(1)
    Of which: share premium accounts3,9893,989-3,989-
    Retained earnings27,68424,5281327,2382
    Accumulated other comprehensive income (and other reserves)9,97010,406(4)9,07610
    Non-controlling interests (amount allowed in consolidated CET1)269262323315
    Independently reviewed interim and year-end profits1,9035,100(63)1,61218
    Foreseeable dividends(1,515)(1,377)10(970)56
    CET1 capital before regulatory adjustments43,41644,039(1)42,3702
    CET1 regulatory adjustments
    Additional value adjustments (prudential valuation adjustments)(780)(693)13(670)16
    Intangible assets (net of related tax liability)(6,183)(6,145)1(5,744)8
    Deferred tax assets that rely on future profitability (excludes those arising from temporary differences)(36)(15)140(34)6
    Fair value reserves related to net losses on cash flow hedges(3)(315)(99)(221)(99)
    Deduction of amounts resulting from the calculation of excess expected loss(629)(599)5(590)7
    Net gains on liabilities at fair value resulting from changes in own credit risk190412(54)293(35)
    Defined-benefit pension fund assets(202)(149)36(152)33
    Fair value gains arising from the institution's own credit risk related to derivative liabilities(126)(70)80(89)42
    Exposure amounts which could qualify for risk weighting of 1,250%(31)(25)24(41)(24)
    Total regulatory adjustments to CET1(7,800)(7,599)3(7,248)8
    CET1 capital35,61636,440(2)35,1221
    Additional Tier 1 capital (AT1) instruments8,1117,52987,5278
    AT1 regulatory adjustments(20)(20)-(20)-
    Tier 1 capital43,70743,949(1)42,6293
    Tier 2 capital instruments9,0829,308(2)10,512(14)
    Tier 2 regulatory adjustments(30)(30)-(30)-
    Tier 2 capital9,0529,278(2)10,482(14)
    Total capital52,75953,227(1)53,111(1)
    Total risk-weighted assets (unaudited)266,186258,0313253,5965
    

1     Change is the basis points (bps) difference between the two periods rather than the percentage change

2     Capital base is prepared on the regulatory scope of consolidation

3     Variance is increase/(decrease) comparing current reporting period to prior periods

 

Page 24

Capital review continued

Movement in total capital


    3 months ended
     31.03.26    		12 months
     ended
     31.12.25
    $million$million
    CET1 at 1 January36,44035,190
    Ordinary shares issued in the period and share premium--
    Share buy-back(1,500)(2,800)
    Profit for the period1,9035,100
    Foreseeable dividends deducted from CET1(1,515)(1,377)
    Difference between dividends paid and foreseeable dividends1,137(557)
    Movement in goodwill and other intangible assets(38)(449)
    Foreign currency translation differences(271)931
    Non-controlling interests726
    Movement in eligible other comprehensive income(294)283
    Deferred tax assets that rely on future profitability(21)16
    Decrease/(increase) in excess expected loss(30)101
    Additional value adjustments (prudential valuation adjustment)(87)(69)
    IFRS 9 transitional impact on regulatory reserves including day one--
    Exposure amounts which could qualify for risk weighting(6)18
    Fair value gains arising from the institution's own Credit Risk related to derivative liabilities(56)27
    Others(53)-
    CET1 at 31 March/31 December35,61636,440
    AT1 at 1 January7,5096,482
    Net issuances (redemptions)5811,026
    Foreign currency translation difference11
    Other--
    AT1 at 31 March/31 December8,0917,509
    Tier 2 capital at 1 January9,27811,419
    Regulatory amortisation(63)(227)
    Net issuances (redemptions)-(2,175)
    Foreign currency translation difference and others(168)251
    Tier 2 ineligible minority interest510
    Other--
    Tier 2 capital at 31 March/31 December9,0529,278
    Total capital at 31 March/31 December52,75953,227
    

 

Page 25

Capital review continued

Risk-weighted assets by business


    31.03.26
    Credit riskOperational riskMarket riskTotal risk
    $million$million$million$million
    Corporate & Investment Banking136,84323,82629,890190,559
    Wealth & Retail Banking45,99711,884-57,881
    Central & other items14,592(599)3,75317,746
    Total risk-weighted assets197,43235,11133,643266,186
    31.12.251
    Credit riskOperational riskMarket riskTotal risk
    $million$million$million$million
    Corporate & Investment Banking125,18823,88326,713175,784
    Wealth & Retail Banking47,34911,958-59,307
    Central & other items19,608(618)3,95022,940
    Total risk-weighted assets192,14535,22330,663258,031
    31.03.251
    Credit riskOperational riskMarket riskTotal risk
    $million$million$million$million
    Corporate & Investment Banking120,16622,53432,503175,203
    Wealth & Retail Banking47,22510,736-57,961
    Central & other items16,883(692)4,24120,432
    Total risk-weighted assets184,27432,57836,744253,596
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

Movement in risk-weighted assets


    Credit riskOperational risk
     $million    		Market risk
     $million    		Total risk
     $million
    Corporate & Investment Banking1Wealth & Retail Banking1Central &
     other items1    		Total
    $million$million$million$million
    At 1 January 2025124,37848,71416,211189,30329,47928,283247,065
    Asset growth & mix(1,633)(2,037)2,625(1,045)--(1,045)
    Asset quality1,343(483)5671,427--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 translation2,6581,0492243,931--3,931
    Other, including non-credit risk movements----5,7442,3178,061
    At 31 December 2025125,18847,34919,608192,14535,22330,663258,031
    Asset growth & mix11,858(393)(4,686)6,779--6,779
    Asset quality(147)(199)(92)(438)--(438)
    Risk-weighted assets efficiencies-------
    Model updates919(84)-835-(565)270
    Methodology and policy changes-------
    Acquisitions and disposals-------
    Foreign currency translation(975)(676)(238)(1,889)--(1,889)
    Other, including non-credit risk movements----(112)3,5453,433
    At 31 March 2026136,84345,99714,592197,43235,11133,643266,186
    

1     Comparatives have been re-presented in accordance with the RNS titled "Re presentation of Financial Information" issued on 25 March 2026

 

 

Page 26

Capital review continued

Leverage Ratio


    31.03.2631.12.25Change131.03.25Change1
    $million$million%$million%
    Tier 1 capital43,70743,949(1)42,6293
    Derivative financial instruments97,65865,7824856,13974
    Derivative cash collateral14,48412,8681310,15043
    Securities financing transactions (SFTs)100,70596,096599,0412
    Loans and advances and other assets760,060745,2092709,1167
    Total on-balance sheet assets972,907919,9556874,44611
    Regulatory consolidation adjustments2(98,315)(96,565)2(88,186)11
    Derivatives adjustments
    Derivatives netting(78,483)(51,827)51(40,329)95
    Adjustments to cash collateral(10,290)(10,011)3(8,862)16
    Net written credit protection2,6682,60423,971-33
    Potential future exposure on derivatives60,77258,062553,08414
    Total derivatives adjustments(25,333)(1,172)nm7,864nm
    Counterparty risk leverage exposure measure for SFTs5,2376,715(22)4,43818
    Off-balance sheet items106,699117,341(9)118,104(10)
    Regulatory deductions from Tier 1 capital(8,005)(8,084)(1)(7,594)5
    Total exposure measure excluding claims on central banks953,190938,1902909,0725
    Leverage ratio excluding claims on central banks (%)34.6%4.7%(10)4.7%(10)
    Average leverage exposure measure excluding claims on central banks964,481949,2142911,2896
    Average leverage ratio excluding claims on central banks (%)34.5%4.6%(6)4.6%(9)
    Countercyclical leverage ratio buffer30.1%0.1%-0.1%-
    G-SII additional leverage ratio buffer30.4%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 basis points (bps) difference between the two periods rather than the percentage change

 

Page 27

Financial statements

Condensed consolidated interim income statement

For the three months ended 31 March 2026


    3 months
     ended
     31.03.26    		3 months ended
     31.03.25
    $million$million
    Interest income5,7896,327
    Interest expense(4,258)(4,746)
    Net interest income1,5311,581
    Fees and commission income1,6871,331
    Fees and commission expense(335)(194)
    Net fee and commission income1,3521,137
    Net trading income2,9602,645
    Other operating income5916
    Operating income5,9025,379
    Staff costs(2,293)(2,144)
    Premises costs(86)(87)
    General administrative expenses(470)(551)
    Depreciation and amortisation(291)(264)
    Operating expenses(3,140)(3,046)
    Operating profit before impairment losses and taxation2,7622,333
    Credit impairment(296)(217)
    Goodwill, property, plant and equipment and other impairment(2)(15)
    (Loss)/profit from associates and joint ventures(14)2
    Profit before taxation2,4502,103
    Taxation(540)(511)
    Profit for the period1,9101,592
    Profit attributable to:
    Non-controlling interests102
    Parent company shareholders1,9001,590
    Profit for the period1,9101,592
    centscents
    Earnings per share:
    Basic earnings per ordinary share74.256.6
    Diluted earnings per ordinary share72.055.1
    

 

Page 28

Financial statements continued

Condensed consolidated interim statement of comprehensive income

For the three months ended 31 March 2026


    3 months ended
     31.03.26    		3 months ended
     31.03.25
    $million$million
    Profit for the period1,9101,592
    Other comprehensive income
    Items that will not be reclassified to income statement:241(4)
    Own credit gains/(losses) on financial liabilities designated at fair value through profit or loss235(21)
    Equity instruments at fair value through other comprehensive income(25)2
    Actuarial gains on retirement benefit obligations6113
    Revaluation deficit(2)(3)
    Taxation relating to components of other comprehensive income(28)5
    Items that may be reclassified subsequently to income statement:(649)355
    Exchange differences on translation of foreign operations:
    Net (losses)/gains taken to equity(702)33
    Net gains/(losses) on net investment hedges424(13)
    Share of other comprehensive income from associates and joint ventures373
    Debt instruments at fair value through other comprehensive income:
    Net valuation (losses)/gains taken to equity(124)117
    Reclassified to income statement(18)1
    Net impact of expected credit losses233
    Cash flow hedges:
    Net movements in cash flow hedge reserve(388)261
    Taxation relating to components of other comprehensive income99(50)
    Other comprehensive (loss)/income for the period, net of taxation(408)351
    Total comprehensive income for the period1,5021,943
    Total comprehensive income attributable to:
    Non-controlling interests53
    Parent company shareholders1,4971,940
    Total comprehensive income for the period1,5021,943
    

 

 

Page 29

Financial statements continued

Condensed consolidated interim balance sheet

As at 31 March 2026


    31.03.2631.12.25
    $million$million
    Assets
    Cash and balances at central banks71,24777,746
    Financial assets held at fair value through profit or loss209,336195,257
    Derivative financial instruments97,65865,782
    Loans and advances to banks44,28943,901
    Loans and advances to customers293,561286,788
    Investment securities159,032166,956
    Other assets82,64767,931
    Current tax assets517574
    Prepayments and accrued income2,8923,058
    Interests in associates and joint ventures1,5191,426
    Goodwill and intangible assets6,2686,231
    Property, plant and equipment2,4272,559
    Deferred tax assets502493
    Retirement benefit schemes in surplus205154
    Assets classified as held for sale8071,099
    Total assets972,907919,955
    Liabilities
    Deposits by banks28,81930,846
    Customer accounts542,223530,161
    Repurchase agreements and other similar secured borrowing5,7357,757
    Financial liabilities held at fair value through profit or loss88,54489,597
    Derivative financial instruments99,13168,204
    Debt securities in issue75,82672,858
    Other liabilities60,66346,655
    Current tax liabilities885709
    Accruals and deferred income5,5577,358
    Subordinated liabilities and other borrowed funds8,6658,834
    Deferred tax liabilities737752
    Provisions for liabilities and charges428401
    Retirement benefit schemes in deficit341323
    Liabilities included in disposal groups held for sale668914
    Total liabilities918,222865,369
    Equity
    Share capital and share premium account6,5996,614
    Other reserves9,97010,406
    Retained earnings29,52829,573
    Total parent company shareholders' equity46,09746,593
    Other equity instruments8,1097,528
    Total equity excluding non-controlling interests54,20654,121
    Non-controlling interests479465
    Total equity54,68554,586
    Total equity and liabilities972,907919,955
    

Page 30

Financial statements continued

Condensed consolidated interim statement of changes in equity

For the three months ended 31 March 2026


    Ordinary share capital and share premium accountPreference share capital and share premium accountCapital
     and merger reserves1    		Own credit adjustment reserveFair value through other comprehensive income reserve - debtFair value through other comprehensive income reserve - equityCash flow hedge reserveTranslation reserveRetained earningsParent company shareholders' equityOther equity instrumentsNon-controlling interestsTotal
    $million$million$million$million$million$million$million$million$million$million$million$million$million
    As at 01 January 20255,2011,49417,573(278)(241)3044(8,638)28,96944,3886,50239451,284
    Profit for the period--------5,0855,085-125,097
    Other comprehensive (loss)/income8---(134)28423663118851032,71,685-331,718
    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--------220220--220
    Dividends on ordinary shares--------(954)(954)--(954)
    Dividends on preference shares and AT1 securities--------(527)(527)--(527)
    Share buy-back4(81)-81-----(2,800)(2,800)--(2,800)
    Other movements----(27)--46(71)(52)3776361
    As at 31 December 20255,1201,49417,654(412)16540315(7,707)29,57346,5937,52846554,586
    Profit for the period--------1,9001,900-101,910
    Other comprehensive income/(loss)8---222(59)(31)(312)(271)482(403)-(5)(408)
    Other equity instruments issued, net of expenses----------582-582
    Treasury shares net movement--------(332)(332)--(332)
    Share option expense, net of taxation--------8383--83
    Dividends on preference shares and AT1 securities--------(240)(240)--(240)
    Share buy-back5(15)-15-----(1,500)(1,500)--(1,500)
    Other movements--------(4)(4)(1)934
    As at 31 March 20265,1051,49417,669(190)(43)5093(7,978)29,52846,0978,10947954,685
    

1  Includes capital reserve of $5 million (31 December 2025: $5 million), capital redemption reserve of $553 million (31 December 2025: $538 million) and merger reserve of $17,111 million (31 December 2025: $17,111 million)

2     Includes actuarial (loss)/gain, net of taxation on Group defined benefit schemes

3 Movements are primarily from non-controlling interest related to Trust Bank Singapore Limited $12 million offset by Anchorpoint Financial Limited $3 million. Movements in 2025 are primarily from Mox Bank Limited ($26 million), Standard Chartered Research and Technology India Private Limited ($12 million), Zodia Markets Holdings Limited ($15 million), Trust Bank Singapore Limited ($8 million), Anchorpoint Financial Limited ($6 million), Financial Inclusion Tech ($6 million) and Furaha Holding Ltd ($3 million)

4     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

5   During 2026, the Group announced the following share buybacks: a share buyback of up to $1,500 million in February 2026. As at 31 March 2026, the buyback is ongoing

6   Includes $348 million mark-to-market gain on equity instruments (net of tax), $103 million relating to transfer of gain on sale of equity investment to retained earnings and reversal of deferred tax liability $9 million

7  Includes $103 million gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings partly offset by $9 million capital gain tax

8     All the amounts are net of tax

 

 

Page 31

Financial statements continued

Basis of preparation

This statement covers the results of Standard Chartered PLC together with its subsidiaries and equity accounted interest in associates and jointly controlled entities (the Group) for the three months ended 31 March 2026. The financial information on which this statement is based, and the data set out in the appendix to this statement, are unaudited and have been prepared in accordance with the Group's accounting policies. The Group's material accounting policies are described in the Annual Report 2025, which have been prepared in accordance with UK-adopted international accounting standards and International Financial Reporting Standards (IFRS) (Accounting Standards) as adopted by the European Union (EU IFRS) as there are no applicable differences for the periods presented, and in conformity with the requirements of the Companies Act 2006. The Group's Annual Report 2026 will continue to be prepared in accordance with these frameworks.

The interim financial information does not constitute a full or condensed set of financial statements under IAS 34 'Interim Financial Reporting' as contained in UK-adopted IAS or EU IFRS. The interim financial information has been prepared in accordance with the recognition and measurement principles, but not the disclosure requirements under UK-adopted IAS and EU IFRS.

The information in this interim financial report is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. All references to performance/results within this interim financial report means amounts reported under UK-adopted IAS and EU IFRS or in reference to the statutory accounts for the year ended 31 December 2025, unless otherwise stated. This document was approved by the Board on 30 April 2026. The statutory accounts for the year ended 31 December 2025 have been audited and delivered to the Registrar of Companies in England and Wales. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under sections 498(2) and 498(3) of the Companies Act 2006.

Going concern

The directors assessed the Group's ability to continue as a going concern, including a review of the Group's forecasts, Funding and Liquidity metrics, Capital and Liquidity plans, Legal and regulatory matters, Credit impairment, macroeconomic conditions and geopolitical headwinds, and confirm they are satisfied that the Group has adequate resources to continue in business for a period of twelve months from 30 April 2026. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the interim financial information.

 

Page 32

Other supplementary financial information

Net Interest Margin


    Q1'26Q1'25Q4'25
    $million$million$million
    Interest income5,7896,3275,928
    Adjustment for trading book funding cost and others243130280
    Adjusted Interest Income6,0326,4576,208
    Average interest earning assets1566,911535,999560,311
    Gross yield (%)4.314.894.40
    Interest expense4,2584,7464,425
    Adjustment for trading book funding cost and others(1,095)(1,086)(1,165)
    Adjusted Interest expense3,1633,6603,260
    Average interest-bearing liabilities1613,179556,629599,439
    Rate paid (%)2.092.672.16
    Net yield (%)2.222.222.24
    Adjusted net interest income2,8692,7972,948
    Net interest margin (%)2.052.122.09
    

1     Average interest earning assets and interest-bearing liabilities are adjusted for cash collateral balances in other assets and other liabilities that are related to the Global Markets trading book

 

 

Page 33

 

Shareholder information

Important Notice

Forward-looking statements

The information included in this document may contain 'forward-looking statements' based upon current expectations or beliefs as well as statements formulated with assumptions about future events. Forward-looking statements include, without limitation, projections, estimates, commitments, plans, approaches, ambitions and targets (including, without limitation, ESG commitments, ambitions and targets). Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'aim', 'continue' or other words of similar meaning to any of the foregoing. Forward-looking statements may also (or additionally) be identified by the fact that they do not relate only to historical or current facts.

By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Readers should not place reliance on, and are cautioned about relying on, any forward-looking statements.

There are several factors which could cause the Group's actual results and its plans and objectives to differ materially from those expressed or implied in forward-looking statements. The factors include (but are not limited to): changes in global, political, economic, business, competitive and market forces or conditions, or in future exchange and interest rates; changes in environmental, geopolitical, social or physical risks; legal, regulatory and policy developments, including regulatory measures addressing climate change and broader sustainability-related issues; the development of standards and interpretations, including evolving requirements and practices in ESG reporting; the ability of the Group, together with governments and other stakeholders to measure, manage, and mitigate the impacts of climate change and broader sustainability-related issues effectively; risks arising out of health crises and pandemics; risks of cyber-attacks, data, information or security breaches or technology failures involving the Group; changes in tax rates or policy; future business combinations or dispositions; and other factors specific to the Group, including those identified in Standard Chartered PLC's Annual Report and the financial statements of the Group. To the extent that any forward-looking statements contained in this document are based on past or current trends and/or activities of the Group, they should not be taken as a representation that such trends or activities will continue in the future.

No statement in this document is intended to be, nor should be interpreted as, a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date that it is made. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please refer to Standard Chartered PLC's Annual Report and the financial statements of the Group for a discussion of certain of the risks and factors that could adversely impact the Group's actual results, and cause its plans and objectives, to differ materially from those expressed or implied in any forward-looking statements.

Non-IFRS performance measures and alternative performance measures

This document may contain: (a) financial measures and ratios not specifically defined under: (i) International Financial Reporting Standards (IFRS) (Accounting Standards) as adopted by the European Union; or (ii) UK-adopted International Accounting Standards (IAS); and/or (b) alternative performance measures as defined in the European Securities and Market Authority guidelines. Such measures may exclude certain items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. These measures are not a substitute for IAS or IFRS measures and are based on a number of assumptions that are subject to uncertainties and change. For further information, please refer to Standard Chartered PLC's Annual Report and the financial statements of the Group and, specifically in relation to adjusted net interest income and adjusted non-interest income, please refer to the footnote beneath the "Net interest income and non-interest income" section on page 6 of this document.

Financial instruments

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter.

 

Page 34

Shareholder information continued

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.

Chinese translation

If there is any inconsistency between the English version of this document and any translation of the English version, the English version shall prevail.

 

Page 35

Shareholder information continued

Contact information

Global headquarters

Standard Chartered Group

1 Basinghall Avenue

London, EC2V 5DD

United Kingdom

telephone: +44 (0)20 7885 8888

facsimile: +44 (0)20 7885 9999

Shareholder enquiries
 ShareCare information

website: sc.com/shareholders

helpline: +44 (0)370 702 0138

ShareGift information
 website: ShareGift.org

helpline: +44 (0)20 7930 3737

Registrar information

UK

Computershare Investor Services PLC
 The Pavilions

Bridgwater Road

Bristol, BS99 6ZZ

helpline: +44 (0)370 702 0138

Hong Kong

Computershare Hong Kong Investor Services Limited
 17M Floor, Hopewell Centre

183 Queen's Road East

Wan Chai

Hong Kong

website: computershare.com/hk/investors

Chinese translation

Computershare Hong Kong Investor Services Limited
 17M Floor, Hopewell Centre

183 Queen's Road East

Wan Chai

Hong Kong

Register for electronic communications

website: investorcentre.co.uk

For further information, please contact:

Manus Costello, Global Head of Investor Relations

+44 (0) 20 7885 0017

LSE Stock code: STAN.LN

HKSE Stock code: 02888

 

Page 36

 

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