TIDMSTAN
RNS Number : 0400X
Standard Chartered PLC
29 April 2021
Standard Chartered PLC - first quarter 2021 results
Table of contents
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Performance highlights 1
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Statement of results 2
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Group Chief Financial Officer's review 3
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Supplementary financial information 11
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Underlying versus statutory results reconciliations 24
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Risk review 30
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Capital review 35
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Financial statements 40
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Other supplementary financial information 45
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Forward-looking statements
This document may contain 'forward-looking statements' that are
based on current expectations or beliefs, as well as assumptions
about future events. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as 'may', 'could', 'will', 'expect', 'intend', 'estimate',
'anticipate', 'believe', 'plan', 'seek', 'continue' or other words
of similar meaning.
By their very nature, forward-looking statements are subject to
known and unknown risks and uncertainties and can be affected by
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. Recipients should not
place reliance on, and are cautioned about relying on, any
forward-looking statements. There are several factors which could
cause actual results to differ materially from those expressed or
implied in forward looking statements. The factors that could cause
actual results to differ materially from those described in the
forward-looking statements include (but are not limited to) changes
in global, political, economic, business, competitive, market and
regulatory forces or conditions, future exchange and interest
rates, changes in tax rates, future business combinations or
dispositions and other factors specific to the Group. Any
forward-looking statement contained in this document is based on
past or current trends and/or activities of the Group and 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 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 of the particular statement.
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 the Group's 2020 Annual Report for a discussion
of certain risks and 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.
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.
Unless another currency is specified, the word 'dollar' or
symbol '$' in this document means US dollar and the word 'cent' or
symbol 'c' means one-hundredth of one US dollar.
The information within this report is unaudited.
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.
Asia includes Australia, Bangladesh, Brunei, Cambodia, Mainland
China, Hong Kong, India, Indonesia, Japan, Korea, Laos, Macau,
Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka,
Taiwan, Thailand and Vietnam; Africa & Middle East (AME)
includes Angola, Bahrain, Botswana, Cameroon, Cote d'Ivoire, Egypt,
The Gambia, Ghana, Iraq, Jordan, Kenya, Lebanon, Mauritius,
Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Sierra Leone, South
Africa, Tanzania, the United Arab Emirates (UAE), Uganda, Zambia
and Zimbabwe; and Europe & Americas (EA) includes Argentina,
Brazil, Colombia, Falkland Islands, France, Germany, Ireland,
Jersey, Poland, Sweden, Turkey, the UK and the US.
Within the tables in this report, blank spaces indicate that the
number is not disclosed, dashes indicate that the number is zero
and nm stands for not meaningful.
Standard Chartered PLC is incorporated in England and Wales with
limited liability. 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
Standard Chartered PLC - first quarter 2021 results
All figures are presented on an underlying basis and comparisons
are made to 2020 on a reported currency basis, unless otherwise
stated. A reconciliation of restructuring and other items excluded
from underlying results is set out on pages 24-29.
Bill Winters, Group Chief Executive, said:
"Our first quarter performance was strong. Economic recovery
advanced in many of our markets leading to improved transaction
volumes and profitability. This was particularly the case in our
Financial Markets and in Wealth Management, which had its best ever
quarter. Our areas of strategic focus including efforts to lead
with a differentiated sustainability offering are growing well.
Despite low interest rates, we expect our underlying momentum to
lead to income growth in the second half of 2021."
Update on strategic priorities
-- Network: continued growth in digitally initiated
transactions, up 3%pts in 1Q'21 to 44%
-- Affluent: added over 400,000 new clients in the last 12
months, with two-thirds migrating from Mass Retail
-- Mass Retail: Mox client base in Hong Kong increased 50%
year-to-date to 100,000 clients
-- Sustainability: launched market-first sustainable trade
finance proposition
Selected information concerning 1Q'21 financial performance
-- Income 9% lower at $3.9bn, down 3% at constant currency (ccy)
and excluding a $305m reduction in DVA
- Net interest margin (NIM) has broadly stabilised at 122bps,
down 2bps QoQ but flat excluding 4Q'20 one-off interest credit
- Other income grew 4% excluding DVA
- Wealth Management, Financial Markets and balance sheet growth
nearly offset $380m NII headwind from 30bps YoY drop in NIM
-- Expenses increased 6% to $2.5bn; up 4% at ccy
- Mainly impact of performance-related pay normalisation, with
underlying efficiencies funding higher investment
-- Credit impairment of $20m, down $936m YoY; down $354m QoQ
- Stage 1 and 2: $35m net release, includes $14m overlay
release. Total Stage 1 and 2 overlay now $339m
- Stage 3: $55m down $450m YoY and $269m QoQ with no significant
new exposures in 1Q'21
- High-risk assets: reduced for the third consecutive quarter in
1Q'21, down $1.1bn in the quarter and broadly stable YoY
-- Underlying profit before tax up 18% to $1.4bn; lower
impairments and business momentum more than offset impact of lower
NIM
- Statutory profit before tax up 59% to $1.4bn; 1Q'20 included
$258m goodwill impairment
- Return on tangible equity up 220bps to 10.8%
-- Tax charge of $314m: underlying effective tax rate of 22%,
down 8%pts due to change in geographic mix and higher profits
-- The Group's balance sheet continues to grow and remains
strong, liquid and well diversified
- Customer loans and advances up 4% or $10bn since 31.12.20;
customer accounts up 1%
- Advances-to-deposit ratio 62.7% (31.12.20: 61.1%); liquidity
coverage ratio 150% (31.12.20: 143%)
-- Risk-weighted assets (RWA) of $277bn up $7.8bn since
31.12.20
- $6bn credit RWA growth: asset growth partly offset by asset
mix, FX and optimisation actions. Market risk RWA up $1bn
-- The Group remains strongly capitalised and highly liquid
- Common equity tier 1 ratio 14.0% at the top of the 13-14%
target range (31.12.20: 14.4%)
- Profit accretion 40bps offset by 50bps reduction from RWA
growth, 10bps reduction from $255m share buy-back and interim
ordinary dividend accrual
-- Earnings per share increased 8.1 cents or 32% to 33.5
cents
Outlook
We believe that some of our larger markets will continue to
drive the global economy out of recession over the coming quarters.
While the scale of the US fiscal stimulus and speed of vaccine
roll-out have significantly lifted global economic prospects, we
still expect the recovery to be volatile and uneven.
This positive backdrop reinforces our confidence in our previous
guidance for FY'21, in particular:
-- With the net interest margin having broadly stabilised, we
expect income to start growing again in 2H'21 compared to 2H'20.
Income is expected to be similar in FY'21 to that achieved in FY'20
at constant currency and to return to our medium-term guidance of
5-7% growth from FY'22
-- We still expect FY'21 expenses to increase slightly compared
to FY'20, as we continue to invest in our digital capabilities, but
should remain below $10 billion at constant currency
-- We now expect impairment charges to reduce significantly
year-on-year in FY'21 with the loan loss rate likely to be in or
below our 35-40 basis point medium-term guidance range
Statement of results
---------- ---------- ---------
1Q'21 1Q'20 Change(1)
$million $million %
----------------------------------------------------------------- ---------- ---------- ---------
Underlying performance
Operating income 3,929 4,327 (9)
Operating expenses (2,494) (2,358) (6)
Credit impairment (20) (956) 98
Other impairment (16) 154 (110)
Profit from associates and joint ventures 47 55 (15)
Profit before taxation 1,446 1,222 18
Profit/(loss) attributable to ordinary shareholders(2) 1,053 810 30
Return on ordinary shareholders' tangible equity (%) 10.8 8.6 220bps
Cost to income ratio (%) 63.5 54.5 (900)bps
----------------------------------------------------------------- ---------- ---------- ---------
Statutory performance
Operating income 3,939 4,335 (9)
Operating expenses (2,528) (2,368) (7)
Credit impairment (17) (962) 98
Goodwill impairment - (258) 100
Other impairment (28) 92 (130)
Profit from associates and joint ventures 47 47 -
Profit before taxation 1,413 886 59
Taxation (314) (369) 15
Profit for the period 1,099 517 113
Profit/(loss) attributable to parent company shareholders 1,092 510 114
Profit/(loss) attributable to ordinary shareholders(2) 1,027 477 115
Return on ordinary shareholders' tangible equity (%) 10.6 5.1 550bps
Cost to income ratio (%) 64.2 54.6 (960)bps
----------------------------------------------------------------- ---------- ---------- ---------
Balance sheet and capital
Total assets 804,903 764,916 5
Total equity 52,275 50,004 5
Average tangible equity attributable to ordinary shareholders(2) 39,464 37,927 4
Loans and advances to customers 292,084 271,234 8
Customer accounts 441,684 422,192 5
Risk weighted assets 276,670 272,653 1
Total capital 58,531 53,458 9
Total capital (%) 21.2 19.6 160bps
Common Equity Tier 1 38,711 36,467 6
Common Equity Tier 1 ratio (%) 14.0 13.4 60bps
Net Interest Margin (%) (adjusted) 1.22 1.52 (30)bps
Advances-to-deposits ratio (%)(3) 62.7 61.9 0.8
Liquidity coverage ratio (%) 150 142 8
UK leverage ratio (%) 5.1 4.9 20bps
----------------------------------------------------------------- ---------- ---------- ---------
Information per ordinary share Cents Cents Cents
Earnings per share - underlying(4) 33.5 25.4 8.1
- statutory(4) 32.6 15.0 17.7
Net asset value per share(5) 1,433 1,357 76
Tangible net asset value per share(5) 1,270 1,201 69
Number of ordinary shares at period end (millions) 3,118 3,147 (1)
----------------------------------------------------------------- ---------- ---------- ---------
1 Variance is better/(worse) other than assets, liabilities and risk-weighted assets
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 includes customer accounts held
at fair value through profit or loss
4 Represents the underlying or statutory earnings divided by the
basic weighted average number of shares
5 Calculated on period end net asset value, tangible net asset value and number of shares
Group Chief Financial Officer's review
The Group delivered a strong performance in the first quarter of
2021
Summary of financial performance
Constant Constant
currency currency
1Q'21 1Q'20 Change change(1) 4Q'20 Change change(1)
$million $million % % $million % %
--------------------------------- ---------- ---------- ------ ---------- ------ ----------
Net interest income 1,662 1,842 (10) (11) 1,760 (6) (7)
Other income 2,267 2,485 (9) (9) 1,439 58 57
--------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Underlying operating income 3,929 4,327 (9) (10) 3,199 23 22
Other operating expenses (2,494) (2,358) (6) (4) (2,618) 5 6
UK bank levy - - nm(3) nm(3) (331) 100 100
Underlying operating expenses (2,494) (2,358) (6) (4) (2,949) 15 16
--------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Underlying operating profit
before impairment and taxation 1,435 1,969 (27) (27) 250 nm(3) nm(3)
Credit impairment (20) (956) 98 98 (374) 95 95
Other impairment (16) 154 (110) (110) (82) 80 80
Profit from associates and joint
ventures 47 55 (15) (15) 14 nm(3) nm(3)
--------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Underlying profit/(loss) before
taxation 1,446 1,222 18 19 (192) nm(3) nm(3)
Restructuring (33) (92) 64 65 (248) 87 87
Goodwill impairment - (258) 100 100 - nm(3) nm(3)
Other items - 14 (100) (100) (9) 100 100
--------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Statutory profit/(loss) before
taxation 1,413 886 59 61 (449) nm(3) nm(3)
Taxation (314) (369) 15 15 (27) nm(3) nm(3)
--------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Profit/(loss) for the period 1,099 517 113 116 (476) nm(3) nm(3)
--------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Net interest margin (%)(2) 1.22 1.52 (30) 1.24 (2)
Underlying return on tangible
equity (%)(2) 10.8 8.6 220 (4.3) 1,510
Underlying earnings per share
(cents) 33.5 25.4 32 (13.5) nm(3)
Statutory return on tangible
equity (%)(2) 10.6 5.1 550 (6.2) 1,680
Statutory earnings per share
(cents) 32.6 15.0 117 (19.4) nm(3)
--------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Change is the basis points (bps) difference between the two
periods rather than the percentage change
3 Not meaningful
The Group delivered a strong performance in the first quarter of
2021 with underlying profit before tax improving 18 per cent.
Positive business momentum, very low credit impairment charges and
operating cost efficiencies more than offset the impact of lower
interest rates, a $305 million reduction in the debit valuation
adjustment (DVA) and increased investment. Income declined 3 per
cent excluding DVA and on a constant currency basis, with a record
performance in Wealth Management as well as 4 per cent growth in
Loans and Advances to Customers in the quarter nearly offsetting
the impact of a 30 basis point decline in net interest margin.
Expenses increased 4 per cent at constant currency mainly due to
the normalisation of performance-related pay accruals, with
underlying cost efficiencies funding an increase in investments.
Credit impairment charges were exceptionally low reflecting the
improving economic backdrop. The Group remains well capitalised and
highly liquid with a CET1 ratio of 14.0 per cent - at the top end
of the 13 to 14 per cent target range - an advances-to-deposits
ratio of 62.7 per cent and a liquidity coverage ratio of 150 per
cent.
All commentary that follows is on an underlying basis and
comparisons are made to the equivalent period in 2020 on a reported
currency basis, unless otherwise stated.
-- Operating income declined 9 per cent and was down 3 per cent
on a constant currency basis and excluding a $305 million reduction
in DVA. The impact of lower interest rates was partially offset by
balance sheet growth and strong performances in Wealth Management
and Financial Markets, excluding the reduction in DVA
-- Net interest income decreased 10 per cent with a 9 per cent
increase in average interest earning assets more than offset by a
20 per cent (30 basis points) decline in net interest margin
-- Other income decreased 9 per cent, but was up 4 per cent
excluding the negative impact of movements in DVA, with a
particularly strong performance in Wealth Management partially
offset by lower Treasury realisation gains
-- Operating expenses were up 6 per cent and up 4 per cent on a
constant currency basis, with performance-related pay accruals
normalising and increased investment into transformational digital
initiatives. The cost-to-income ratio excluding DVA increased 5
percentage points to 63 per cent, due to the impact of the
significantly lower interest rate environment on net interest
income
-- Credit impairment declined by $936 million to $20 million.
There was a $35 million release in Stage 1 and 2 impairments
reflecting the impact of improvements in the macroeconomic
variables incorporated into expected credit loss models, additional
collateral received on a few credit grade 12 clients and a $14
million release of the judgemental management overlay relating to
stage 1 and 2 loans. Impairments of Stage 3 assets of $55 million
were down $450m, with no significant new exposures in the
quarter
-- Other impairment increased by $170 million with the
non-repeat of a $165 million release in 1Q'20 and a $16 million
charge in the quarter primarily in relation to the aviation lease
portfolio
-- Profit from associates and joint ventures was down 15 per
cent to $47 million primarily reflecting the reduction in the
Group's shareholding in China Bohai Bank from 19.99 per cent in
1Q'20 to 16.26 per cent
-- Charges relating to restructuring, goodwill impairment and
other items decreased $303 million to $33 million, with lower
restructuring costs and a non-repeat of $258 million goodwill
impairment primarily in India booked in 1Q'20
-- Taxation was $314 million on a statutory basis, with an
underlying year-to-date effective tax rate of 22 per cent down from
the prior year rate of 30 per cent reflecting a change in the
geographic mix of profits and higher profits diluting the impact of
non-deductible costs and withholding tax
-- Underlying return on tangible equity increased by 220 basis
points to 10.8 per cent due to higher profits partly offset by
increased tangible equity reflecting profit accretion and the
impact of favourable FX movements on the translation reserve
Operating income by product
Constant Constant
currency currency
1Q'21 1Q'20 Change change(1) 4Q'20 Change change(1)
$million $million % % $million % %
------------------------------------ ---------- ---------- ------ ---------- ------ ----------
Transaction Banking 643 800 (20) (20) 652 (1) (2)
---------- ---------- ------ ---------- ---------- ------ ----------
Trade 277 260 7 7 249 11 11
Cash Management 366 540 (32) (33) 403 (9) (10)
---------- ---------- ------ ---------- ---------- ------ ----------
Financial Markets(2) 1,325 1,546 (14) (16) 963 38 36
---------- ---------- ------ ---------- ---------- ------ ----------
Macro Trading(3,4) 677 831 (19) (20) 441 54 53
Credit Markets(3,4) 441 267 65 65 414 7 6
Credit Trading 131 (25) nm nm 119 10 10
Financing Solutions & Issuance 310 292 6 6 295 5 4
Structured Finance 99 92 8 6 101 (2) (2)
Financing & Security Services(3) 108 51 112 104 76 42 32
DVA - 305 (100) (100) (69) 100 100
---------- ---------- ------ ---------- ---------- ------ ----------
Lending & Portfolio Management(2) 233 205 14 13 218 7 6
Wealth Management 641 530 21 20 436 47 46
Retail Products 849 946 (10) (12) 848 - (1)
---------- ---------- ------ ---------- ---------- ------ ----------
CCPL & other unsecured lending 320 304 5 3 303 6 5
Deposits 233 472 (51) (51) 271 (14) (15)
Mortgage & Auto 247 136 82 75 234 6 4
Other Retail Products 49 34 44 39 40 23 25
---------- ---------- ------ ---------- ---------- ------ ----------
Treasury 257 325 (21) (21) 92 179 176
Other (19) (25) 24 32 (10) (90) (70)
------------------------------------ ---------- ---------- ------ ---------- ---------- ------ ----------
Total underlying operating income 3,929 4,327 (9) (10) 3,199 23 22
------------------------------------ ---------- ---------- ------ ---------- ---------- ------ ----------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Following a reorganisation, there has been a reclassification
of balances relating to Corporate Finance, Financial Markets and
Lending & Portfolio Management including prior period numbers.
There is no change in the total income
3 1Q'20 published results included $0.5 million (4Q'20: $1
million) of income within Foreign Exchange; $6 million (4Q'20: $6
million) within Rates; $(3) million (4Q'20: $1 million) within
Commodities and $(1) million (4Q'20: $(1) million) within Global
Credit now reported in Financing and Security Services
4 1Q'20 published results included $3 million (4Q'20: $3
million) of income in Commodities now reported in Credit
Markets
5 Not meaningful
Reflecting the updated organisational structure that came into
effect on 1 January 2021, the Group's Financial Markets business
has been expanded and reorganised, with the Group integrating the
majority of its Corporate Finance business within Financial
Markets. The remaining elements of the Group's Corporate Finance
business - primarily M&A Advisory - have been transferred into
Lending & Portfolio Management.
Transaction Banking income was down 20 per cent. Cash Management
declined 32 per cent as double-digit volume growth and increased
fee income was more than offset by significant margin compression
due to the lower interest rate environment. Trade increased 7 per
cent due to double-digit growth in balances and increased margins
benefiting from improved mix with a switch from financial
institutions trade loans into corporate trade loans.
Financial Markets income declined 14 per cent but was up 7 per
cent excluding the reduction in DVA. Credit Trading was up strongly
compared to a $25 million loss in 1Q'20 which was due to
mark-to-market movements resulting from the elevated levels of
market volatility at that time. There was high single-digit growth
in Structured Finance and Financing Solutions & Issuance, while
positive movements in XVA resulted in a doubling of Financing &
Security Services income. Macro Trading declined 19 per cent from
lower FX and Rates income due to reduced client demand and lower
trading gains compared to the exceptional volatility experienced in
1Q'20. This was partly offset by strong double-digit growth in
Commodities which benefited from higher commodity prices.
Lending and Portfolio Management income was up 14 per cent with
increased fee income, improved margins and balance sheet
growth.
Wealth Management recorded a record quarter, with income up 21
per cent. There was a particularly strong sales performance in FX,
equities and structured notes, supplemented by clients increasingly
using digital channels, driving income excluding bancassurance up
28 per cent. Bancassurance income, which is currently around a
quarter of total Wealth Management income, grew 3 per cent, despite
sales being negatively impacted by reduced branch footfall due to
COVID-19.
Retail Products income reduced 10 per cent on a reported basis
and was down 12 per cent on a constant currency basis. Deposits
income declined 51 per cent as margin compression more than offset
increased volumes. Balance sheet growth and increased margins
benefiting from lower funding led to 82 per cent growth across
Mortgages & Auto and a 44 per cent increase in Other Retail
Products. Credit Cards & Personal Loans income increased 5 per
cent with increased personal loan volumes and improved margins
partly offset by lower credit card spend.
Treasury income declined 21 per cent to $257 million, primarily
from a $94 million reduction in realisation gains to $104 million,
partly offset by a non-repeat of prior period negative movements in
hedge ineffectiveness.
Profit before tax by client segment and geographic region
Constant Constant
currency currency
1Q'21 1Q'20 Change change(1) 4Q'20 Change change(1)
$million $million % % $million % %
-------------------------------------- ---------- ---------- ------ ---------- ------ ----------
Corporate, Commercial & Institutional
Banking(2) 904 758 19 18 197 nm(3) nm(3)
Consumer, Private & Business
Banking(2) 460 270 70 73 (7) nm(3) nm(3)
Central & other items (segment) 82 194 (58) (55) (382) 121 121
-------------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Underlying profit/(loss) before
taxation 1,446 1,222 18 19 (192) nm(3) nm(3)
-------------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Asia(2) 1,234 1,017 21 20 403 nm(3) nm(3)
Africa & Middle East 190 47 nm(3) nm(3) (88) nm(3) nm(3)
Europe & Americas 233 101 131 136 (7) nm(3) nm(3)
Central & other items (region) (211) 57 nm(3) nm(3) (500) 58 58
-------------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
Underlying profit/(loss) before
taxation 1,446 1,222 18 19 (192) nm(3) nm(3)
-------------------------------------- ---------- ---------- ------ ---------- ---------- ------ ----------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Following a reorganisation, there has been an integration of
segments and regions (Corporate & Institutional Banking and
Commercial Banking to Corporate, Commercial & Institutional
Banking; Private Banking and Retail Banking to Consumer, Private
& Business Banking; Greater China & North Asia and ASEAN
& South Asia to Asia) including prior period numbers
3 Not meaningful
Reflecting the updated organisational structure that came into
effect on 1 January 2021, this is the first reporting period in
which the Group is reporting on its new structure. The new
structure results in the creation of two new client segments;
Corporate, Commercial & Institutional Banking serving larger
companies and institutions and Consumer, Private & Business
Banking serving individual and business banking clients. From a
regional perspective, Greater China & North Asia and ASEAN
& South Asia have been combined to form a single Asia
region.
Corporate, Commercial & Institutional Banking profit
increased 19 per cent, due to lower impairments, and doubled
excluding the reduction in DVA. Income declined 2 per cent
excluding DVA, with a 7 per cent increase in Financial Markets more
than offset by a 32 percent reduction in Cash Management due to
lower interest rates.
Consumer, Private & Business Banking profit increased 70 per
cent with lower impairments and lower expenses. Income increased 1
per cent, flat on a constant currency basis, as strong double-digit
increases in Wealth Management and Mortgage & Auto income more
than offset the impact of lower interest rates on Retail
Deposits.
Central & other items (segment) profit more than halved to
$82 million with income down 21 per cent reflecting lower
realisation gains within Treasury.
Asia profits increased 21 per cent as lower credit impairments
more than offset a 5 per cent reduction in income and a non-repeat
of a $165 million other impairment recovery in 1Q'20.
Africa & Middle East profits increased four-fold due to a
$204 million reduction in impairments. Income was down 11 per cent,
or 8 per cent on a constant currency basis while costs increased 1
per cent on a constant currency basis.
Europe & Americas income increased 1 per cent, or 42 per
cent excluding a reduction in DVA, which along with $149 million
lower impairments resulted in profits more than doubling.
Central & other items (region) recorded a loss of $211
million with income declining $175 million due to lower returns
paid to Treasury on the equity provided to the regions in a lower
interest rate environment and increased expenses reflecting a
normalisation of performance-related pay accruals.
Adjusted net interest income and margin
1Q'21 1Q'20 Change(1) 4Q'20 Change(1)
$million $million % $million %
------------------------------------- ---------- ---------- ---------- ---------
Adjusted net interest income(2) 1,670 1,931 (14) 1,676 -
Average interest-earning assets 556,331 510,672 9 538,637 3
Average interest-bearing liabilities 509,625 464,549 10 490,778 4
------------------------------------- ---------- ---------- --------- ---------- ---------
Gross yield (%)(3) 1.85 2.95 (110) 1.99 (14)
Rate paid (%)(3) 0.69 1.57 (88) 0.82 (13)
Net yield (%)(3) 1.16 1.38 (22) 1.17 (1)
Net interest margin (%)(3,4) 1.22 1.52 (30) 1.24 (2)
------------------------------------- ---------- ---------- --------- ---------- ---------
1 Variance is better/(worse) other than assets and liabilities
which is increase/(decrease)
2 Adjusted net interest income is statutory net interest income
less funding costs for the trading book and financial guarantee
fees on interest earning assets
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, annualized
Adjusted net interest income was down 14 per cent driven by a 20
per cent reduction in net interest margin to 122 basis points,
falling 30 basis points year-on-year and 2 basis points compared to
4Q'20. On an underlying basis, excluding the impact of the one-off
Korea interest credit in 4Q'20, the net interest margin was flat
quarter-on-quarter:
-- Average interest-earning assets increased 3 per cent in the
quarter, driven by increased balances in Treasury Markets,
Mortgages and Trade. Gross yields declined 14 basis points compared
with the average in the prior quarter due to an asset mix and the
impact of lower interest rates on both the returns earned on the
Treasury Markets portfolio and yields on loans and advances to
customers
-- Average interest-bearing liabilities increased 4 per cent in
the quarter. The deposit mix continued to improve with a reduction
in Retail Products time deposits and growth in individual current
accounts and corporate operating accounts. The rate paid on
liabilities decreased 13 basis points compared with the average in
the prior quarter reflecting interest rate movements, repricing
initiatives and the improvement in the liability mix
Credit risk summary
Income Statement
1Q'21 1Q'20 Change(1) 4Q'20 Change(1)
$million $million % $million %
------------------------- ---------- ---------- --------- ---------- ---------
Total credit impairment 20 956 (98) 374 (95)
Of which stage 1 and 2 (35) 451 (108) 50 (170)
Of which stage 3 55 505 (89) 324 (83)
------------------------- ---------- ---------- --------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting
period to prior reporting periods
Balance sheet
31.03.21 31.12.20 Change(1) 31.03.20 Change(1)
$million $million % $million %
----------------------------------------- ---------- ---------- --------- ---------- ----------
Gross loans and advances to customers(2) 298,297 288,312 3 277,444 8
---------- ---------- --------- ---------- ----------
Of which stage 1 270,367 256,437 5 247,696 9
Of which stage 2 19,212 22,661 (15) 21,979 (13)
Of which stage 3 8,718 9,214 (5) 7,769 12
---------- ---------- --------- ---------- ----------
Expected credit loss provisions (6,213) (6,613) (6) (6,210) -
---------- ---------- --------- ---------- ----------
Of which stage 1 (486) (534) (9) (416) 17
Of which stage 2 (683) (738) (7) (713) (4)
Of which stage 3 (5,044) (5,341) (6) (5,081) (1)
---------- ---------- --------- ---------- ----------
Net loans and advances to customers 292,084 281,699 4 271,234 8
---------- ---------- --------- ---------- ----------
Of which stage 1 269,881 255,903 5 247,280 9
Of which stage 2 18,529 21,923 (15) 21,266 (13)
Of which stage 3 3,674 3,873 (5) 2,688 37
---------- ---------- --------- ---------- ----------
Cover ratio of stage 3 before/after
collateral (%)(3) 58 / 77 58 / 76 0 / 1 65 / 85 (7) / (12)
Credit grade 12 accounts ($million) 2,197 2,164 2 1,453 51
Early alerts ($million) 9,779 10,692 (9) 11,461 (15)
Investment grade corporate exposures
(%)(3) 62 62 - 62 -
----------------------------------------- ---------- ---------- --------- ---------- ----------
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 $3,197 million at 31
March 2021, $2,919 million at 31 December 2020 and $2,903 million
at 31 March 2020
3 Change is the percentage points difference between the two
points rather than the percentage change
Asset quality remained resilient and stable in the first
quarter, although the Group continues to remain alert to the
continued impact of COVID-19 and the likelihood of uneven economic
recovery across markets and industries.
Credit impairment was a $20 million charge in the quarter, with
a $35 million release in stage 1 and 2 impairment and a $55 million
charge relating to stage 3 impairment.
The $35 million release in stage 1 and 2 impairment reflects an
improvement in the macroeconomic environment, additional collateral
received relating to a few credit grade 12 clients and a $14
million release of the judgemental stage 1 and 2 management
overlay. The management overlay is $339 million as at 31 March
2021.
Stage 3 impairments of $55 million primarily relate to higher
charge-offs within Consumer, Private & Business Banking in
India and Malaysia after the payment moratoria relief schemed ended
with no significant new exposures within Corporate, Commercial
& Institutional Banking in the quarter.
Gross stage 3 loans and advances to customers of $8.7 billion
were 5 per cent lower compared to 31 December 2020 primarily due to
repayments and write-offs more than offsetting new inflows, which
were 76 per cent lower in Corporate, Commercial & Institutional
Banking compared to the previous quarter. These credit-impaired
loans represented 2.9 per cent of gross loans and advances, a
decrease of 27 basis points compared to 31 December 2020.
The Stage 3 cover ratio of 58 per cent was stable compared with
the position as at 31 December 2020, and the cover ratio post
collateral at 77 per cent increased by a percentage point from
additional collateral within Consumer, Private & Business
Banking.
Credit grade 12 balances have increased 2 per cent since 31
December 2020 primarily from new inflows from Early Alert
accounts.
Early Alert accounts of $9.8 billion have reduced by $0.9
billion since 31 December 2020, reflecting the net impact of
downgrades into credit grade 12 and regularisations of accounts
back into non-high risk categories. The Group is continuing to
monitor its exposures in the Aviation, Metals & Mining and Oil
& Gas sectors particularly carefully, given the unusual
stresses caused by the effects of COVID-19, however rising
commodity prices have eased credit pressure for certain
sectors.
The proportion of investment grade corporate exposures has
remained stable since 31 December 2020 at 62 per cent.
Restructuring, goodwill impairment and other items
1Q'21 1Q'20 4Q'20
-------------- ----------------------------------- ----------------------------------- -----------------------------------
Goodwill Other Goodwill Other Goodwill Other
Restructuring Impairment items Restructuring Impairment items Restructuring Impairment items
$million $million $million $million $million $million $million $million $million
-------------- ------------- ---------- -------- ------------- ---------- -------- ------------- ---------- --------
Operating
income 10 - - 8 - - (41) - (9)
Operating
expenses (34) - - (24) - 14 (168) - -
Credit
impairment 3 - - (6) - - (17) - -
Other
impairment (12) - - (62) (258) - (18) - -
Profit from
associates
and
joint
ventures - - - (8) - - (4) - -
-------------- ------------- ---------- -------- ------------- ---------- -------- ------------- ---------- --------
Profit/(loss)
before
taxation (33) - - (92) (258) 14 (248) - (9)
-------------- ------------- ---------- -------- ------------- ---------- -------- ------------- ---------- --------
The Group's statutory performance is adjusted for profits or
losses of a capital nature, amounts consequent to investment
transactions driven by strategic intent, other infrequent and/or
exceptional transactions that are significant or material in the
context of the Group's normal business earnings for the period and
items which management and investors would ordinarily identify
separately when assessing underlying performance period-by
period.
Restructuring charges of $33 million primarily relate to
redundancies and impairments on property as the Group adapts to new
ways of working post-pandemic.
Balance sheet and liquidity
31.03.21 31.12.20 Change 31.03.20 Change(1)
$million $million % $million %
---------------------------------- ---------- ---------- ------ ---------- ---------
Assets
Loans and advances to banks 48,016 44,347 8 61,323 (22)
Loans and advances to customers 292,084 281,699 4 271,234 8
Other assets 464,803 463,004 - 432,359 8
---------------------------------- ---------- ---------- ------ ---------- ---------
Total assets 804,903 789,050 2 764,916 5
---------------------------------- ---------- ---------- ------ ---------- ---------
Liabilities
Deposits by banks 30,521 30,255 1 25,519 20
Customer accounts 441,684 439,339 1 422,192 5
Other liabilities 280,423 268,727 4 267,201 5
---------------------------------- ---------- ---------- ------ ---------- ---------
Total liabilities 752,628 738,321 2 714,912 5
---------------------------------- ---------- ---------- ------ ---------- ---------
Equity 52,275 50,729 3 50,004 5
---------------------------------- ---------- ---------- ------ ---------- ---------
Total equity and liabilities 804,903 789,050 2 764,916 5
---------------------------------- ---------- ---------- ------ ---------- ---------
Advances-to-deposits ratio (%)(2) 62.7% 61.1% 61.9%
Liquidity coverage ratio (%) 150% 143% 142%
---------------------------------- ---------- ---------- ------ ---------- ---------
1 Variance is increase/(decrease)comparing current reporting
period to prior reporting periods
2 The Group now excludes $15,996 million held with central banks
(31.12.20: $14,296 million, 31.03.20: $9,947 million) that has been
confirmed as repayable at the point of stress
The Group's balance sheet remains strong, liquid and well
diversified:
-- Loans and advances to customers increased 4 per cent since 31
December 2020 to $292 billion despite the impact of adverse foreign
exchange movements. Buoyant corporate activity led to growth in
Financing Solutions & Issuance within Financial Markets,
Corporate Lending - which in part benefited from a $2 billion
temporary increase in balances relating to upcoming initial public
offerings - and Trade. Retail Mortgage balances grew for the fourth
successive quarter
-- Customer accounts of $442 billion increased 1 per cent since
31 December 2020 with an increase in corporate operating account
balances partly offset by lower retail deposits
-- Other assets were stable in the first quarter of 2021 with
increased balances at central banks and investment securities
offset by a reduction in derivative balances. Other liabilities
increased 4 per cent from increased repurchase agreements and
issued debt securities partly offset by reduced derivative
liabilities
The advances-to-deposits ratio increased to 62.7 per cent from
61.1 per cent at 31 December 2020 reflecting the growth in loans
and advances to customers from client demand and supportive market
conditions. The point-in-time liquidity coverage ratio
increased
7 percentage points to 150 per cent as a reduction in net
outflows more than offset a reduction in high quality liquid assets
in the period, in part reflecting improvements in the deposit mix,
and remains well above the minimum regulatory requirement of 100
per cent.
Risk-weighted assets
31.03.21 31.12.20 Change(1) 31.03.20 Change(1)
$million $million % $million %
----------------- ---------- ---------- --------- ---------- ---------
By risk type
Credit risk 226,789 220,441 3 223,003 2
Operational risk 27,116 26,800 1 27,803 (2)
Market risk 22,765 21,593 5 21,847 4
----------------- ---------- ---------- --------- ---------- ---------
Total RWAs 276,670 268,834 3 272,653 1
----------------- ---------- ---------- --------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting
period to prior reporting periods
Total risk-weighted assets (RWAs) increased 3 per cent or $7.8
billion since 31 December 2020 to $277 billion, broadly similar to
the rate of increase in 1Q'19 and 1Q'20:
-- Credit Risk RWA increased by $6.3 billion in the first
quarter to $227 billion with asset growth mostly due to increased
client demand and activity partly offset by FX movements and RWA
optimisation actions. Credit migration increased RWAs by $0.6bn in
the quarter
-- Operational Risk RWA increased $0.3 billion primarily due to
an increase in average income as measured over a rolling three-year
time horizon, with higher 2020 income replacing lower 2017
income
-- Market Risk RWA increased by $1.2 billion to $23 billion due
to a seasonally higher level of Financial Markets activity
Capital base and ratios
31.03.21 31.12.20 Change(1) 31.03.20 Change(1)
$million $million % $million %
-------------------------------- ---------- ---------- --------- ---------- ---------
CET1 capital 38,711 38,779 (0) 36,467 6
Additional Tier 1 capital (AT1) 6,293 5,612 12 4,620 36
-------------------------------- ---------- ---------- --------- ---------- ---------
Tier 1 capital 45,004 44,391 1 41,087 10
Tier 2 capital 13,527 12,657 7 12,371 9
-------------------------------- ---------- ---------- --------- ---------- ---------
Total capital 58,531 57,048 3 53,458 9
-------------------------------- ---------- ---------- --------- ---------- ---------
CET1 capital ratio (%)(2) 14.0 14.4 (0.4) 13.4 0.6
Total capital ratio (%)(2) 21.2 21.2 - 19.6 1.6
UK leverage ratio (%)(2) 5.1 5.2 (0.1) 4.9 0.2
-------------------------------- ---------- ---------- --------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting
period to prior reporting periods
2 Change is percentage points difference between two points
rather than percentage change
The Group is well capitalised with low leverage and high levels
of loss-absorbing capacity. Its capital metrics remain well above
regulatory requirements.
The Group's CET1 ratio of 14.0 per cent was 43 basis points
lower than at 31 December 2020, 4.1 percentage points above the
Group's latest regulatory minimum of 9.9 per cent and at the top of
the 13-14 per cent medium-term target range. The Group's minimum
CET1 requirement decreased to 9.9 per cent from 10 per cent at 31
December 2020 as the Group's Pillar 2A requirement (which is fixed
in absolute terms) was reduced by higher RWA in the period.
The primary driver of the decrease in the CET1 ratio was the
increase in RWAs, principally due to balance sheet growth, which
resulted in a decrease in the CET1 ratio of approximately 50 basis
points which more than offset approximately 40 basis points of CET1
accretion from profits in the quarter.
The CET1 ratio was reduced by 10bps from a net reduction in fair
value through other comprehensive income (FVOCI) reserves mainly
relating to a reversal of prior year unrealised gains on debt
securities as a result of higher market yields. The reduction in
FVOCI reserves was also driven in part by Treasury realisation
activities; the gains on which were reflected in profits.
The Group spent $255 million purchasing 37 million ordinary
shares of $0.50 each, representing a volume-weighted average price
per share of GBP4.92. These shares were subsequently cancelled,
reducing the total issued share capital by 1.2 per cent and the
CET1 ratio by 9 basis points.
The Group is accruing a provisional interim 2021 ordinary share
dividend over the first half of the year which is calculated
formulaically at one-third of the ordinary dividend paid in the
prior year or 3 cents a share. The Group is expecting an update
from the Prudential Regulation Authority before the half-year
results regarding the extent to which an interim ordinary dividend
can be paid.
The expiration of the prudential valuation adjustment temporary
regulatory diversification benefit at the start of 2021 reduced the
CET1 ratio by 5 basis points. This was offset by a 6 basis points
increase in the value of the revised treatment of software assets
in CET1 reflecting an increase in capitalised software assets. The
total benefit to CET1 from the revised treatment of software assets
is now 28 basis points. The PRA is currently consulting on the
potential removal of this benefit.
The Group's UK leverage ratio of 5.1 per cent is slightly lower
than the 5.2 per cent ratio as at 31 December 2020. The Group's
leverage ratio remains significantly above its minimum requirement
of 3.7 per cent.
Outlook
We believe that some of our larger markets will continue to
drive the global economy out of recession over the coming quarters.
While the scale of the US fiscal stimulus and speed of vaccine
roll-out have significantly lifted global economic prospects, we
still expect the recovery to be volatile and uneven.
This positive backdrop reinforces our confidence in our previous
guidance for FY'21, in particular:
-- With the net interest margin having broadly stabilised, we
expect income to start growing again in 2H'21 compared to 2H'20.
Income is expected to be similar in FY'21 to that achieved in FY'20
at constant currency and to return to our medium-term guidance of
5-7% growth from FY'22
-- We still expect FY'21 expenses to increase slightly compared
to FY'20, as we continue to invest in our digital capabilities, but
should remain below $10 billion at constant currency
-- We now expect impairment charges to reduce significantly
year-on-year in FY'21 with the loan loss rate likely to be in or
below our 35-40 basis point medium-term guidance range
Andy Halford
Group Chief Financial Officer
29 April 2021
Supplementary financial information
Underlying performance by client segment
1Q'21
----------------------------------------------------- ------------------------------------------------------
Consumer,
Corporate, Private
Commercial &
& Institutional Business Central &
Banking(1) Banking(1) other items Total
$million $million $million $million
----------------------------------------------------- ---------------- ----------- ------------ ---------
Operating income 2,192 1,500 237 3,929
---------------- ----------- ------------ ---------
External 2,082 1,401 446 3,929
Inter-segment 110 99 (209) -
---------------- ----------- ------------ ---------
Operating expenses (1,302) (991) (201) (2,494)
----------------------------------------------------- ---------------- ----------- ------------ ---------
Operating profit before impairment losses and
taxation 890 509 36 1,435
Credit impairment 30 (49) (1) (20)
Other impairment (16) - - (16)
Profit from associates and joint ventures - - 47 47
----------------------------------------------------- ---------------- ----------- ------------ ---------
Underlying profit before taxation 904 460 82 1,446
Restructuring 1 (9) (25) (33)
Goodwill impairment - - - -
Other Items - - - -
----------------------------------------------------- ---------------- ----------- ------------ ---------
Statutory profit before taxation 905 451 57 1,413
----------------------------------------------------- ---------------- ----------- ------------ ---------
Total assets 391,048 133,333 280,522 804,903
Of which: loans and advances to customers(2) 194,714 130,841 21,620 347,175
---------------- ----------- ------------ ---------
loans and advances to customers 139,745 130,725 21,614 292,084
loans held at fair value through profit or loss 54,969 116 6 55,091
---------------- ----------- ------------ ---------
Total liabilities 492,999 174,556 85,073 752,628
Of which: customer accounts(2) 322,272 170,172 8,503 500,947
Risk-weighted assets 170,176 54,610 51,884 276,670
Underlying return on tangible equity (%) 11.2 17.8 1.7 10.8
Cost to income ratio (%) 59.4 66.1 84.8 63.5
----------------------------------------------------- ---------------- ----------- ------------ ---------
1Q'20
----------------------------------------------------- ------------------------------------------------------
Consumer,
Corporate, Private
Commercial &
& Institutional Business Central &
Banking(1) Banking(1) other items Total
$million $million $million $million
----------------------------------------------------- ---------------- ----------- ------------ ---------
Operating income 2,544 1,483 300 4,327
---------------- ----------- ------------ ---------
External 2,547 1,207 573 4,327
Inter-segment (3) 276 (273) -
---------------- ----------- ------------ ---------
Operating expenses (1,190) (1,015) (153) (2,358)
----------------------------------------------------- ---------------- ----------- ------------ ---------
Operating profit before impairment losses and
taxation 1,354 468 147 1,969
Credit impairment (749) (198) (9) (956)
Other impairment 153 - 1 154
Profit from associates and joint ventures - - 55 55
----------------------------------------------------- ---------------- ----------- ------------ ---------
Underlying profit before taxation 758 270 194 1,222
Restructuring (76) (5) (11) (92)
Goodwill impairment - - (258) (258)
Other Items - - 14 14
----------------------------------------------------- ---------------- ----------- ------------ ---------
Statutory profit/(loss) before taxation 682 265 (61) 886
----------------------------------------------------- ---------------- ----------- ------------ ---------
Total assets 396,393 119,901 248,622 764,916
Of which: loans and advances to customers(2) 190,902 117,679 13,037 321,618
---------------- ----------- ------------ ---------
loans and advances to customers 140,744 117,471 13,019 271,234
loans held at fair value through profit or loss 50,158 208 18 50,384
---------------- ----------- ------------ ---------
Total liabilities 479,796 163,619 71,497 714,912
Of which: customer accounts(2) 314,286 160,120 8,244 482,650
Risk-weighted assets 169,057 50,531 53,065 272,653
Underlying return on tangible equity (%) 9.1 10.4 4.5 8.6
Cost to income ratio (%) 46.8 68.4 51.0 54.5
----------------------------------------------------- ---------------- ----------- ------------ ---------
1 Following a reorganisation, there has been an integration of
Corporate & Institutional Banking and Commercial Banking to
Corporate, Commercial & Institutional Banking; Private Banking
and Retail Banking to Consumer, Private & Business Banking
2 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
Corporate, Commercial & Institutional Banking(1)
Constant Constant
currency currency
1Q'21 1Q'20 Change(6,) change(5,6) 4Q'20 Change(6) change(5,6)
$million $million % % $million % %
------------------------------- ---------- ---------- ---------- ---------- --------- ------------
Operating income 2,192 2,544 (14) (15) 1,820 20 20
Transaction Banking 637 795 (20) (20) 647 (2) (2)
---------- ---------- ---------- ------------ ---------- --------- ------------
Trade 271 255 6 6 244 11 12
Cash Management 366 540 (32) (33) 403 (9) (10)
---------- ---------- ---------- ------------ ---------- --------- ------------
Financial Markets(2) 1,325 1,546 (14) (16) 963 38 36
---------- ---------- ---------- ------------ ---------- --------- ------------
Macro Trading(3,4) 677 831 (19) (20) 441 54 53
Credit Markets(3,4) 441 267 65 65 414 7 6
Credit Trading 131 (25) nm(1) nm(1) 119 10 10
Financing Solutions &
Issuance 310 292 6 6 295 5 4
Structured Finance 99 92 8 6 101 (2) (2)
Financing & Security
Services(3) 108 51 112 104 76 42 32
DVA - 305 (100) (100) (69) 100 100
---------- ---------- ---------- ------------ ---------- --------- ------------
Lending & Portfolio
Management(2) 233 205 14 13 218 7 6
Retail Products 1 2 (50) (50) 2 (50) -
---------- ---------- ---------- ------------ ---------- --------- ------------
Deposits 1 2 (50) (50) 2 (50) -
---------- ---------- ---------- ------------ ---------- --------- ------------
Other (4) (4) - - (10) 60 56
Operating expenses (1,302) (1,190) (9) (8) (1,359) 4 5
Operating profit before
impairment
losses and taxation 890 1,354 (34) (35) 461 93 92
Credit impairment 30 (749) 104 104 (202) 115 115
Other impairment (16) 153 (110) (110) (62) 74 75
------------------------------- ---------- ---------- ---------- ------------ ---------- --------- ------------
Underlying profit before
taxation 904 758 19 18 197 nm(1) nm(1)
Restructuring 1 (76) 101 101 (129) 101 101
------------------------------- ---------- ---------- ---------- ------------ ---------- --------- ------------
Statutory profit before
taxation 905 682 33 32 68 nm(1) nm(1)
------------------------------- ---------- ---------- ---------- ------------ ---------- --------- ------------
Total assets 391,048 396,393 (1) (3) 388,303 1 1
Of which: loans and advances
to customers(7) 194,714 190,902 2 - 187,971 4 4
Total liabilities 492,999 479,796 3 1 481,042 2 3
Of which: customer
accounts(7) 322,272 314,286 3 1 310,779 4 4
Risk-weighted assets 170,176 169,057 1 nm(1) 165,091 3 nm(1)
Underlying return on
risk-weighted
assets (%)(8) 2.2 1.8 40bps nm(1) 0.5 170bps nm(1)
Underlying return on tangible
equity (%)(8) 11.2 9.1 210bps nm(1) 2.3 890bps nm(1)
Cost to income ratio (%)(9) 59.4 46.8 (12.6) (12.4) 74.7 15.3 15.2
------------------------------- ---------- ---------- ---------- ------------ ---------- --------- ------------
1 Following a reorganisation, there has been an integration of
Corporate & Institutional Banking and Commercial Banking to
Corporate, Commercial & Institutional Banking
2 Following a reorganisation, there has been a reclassification
of balances relating to Corporate Finance, Financial Markets and
Lending & Portfolio Management including prior period numbers.
There is no change in the total income
3 1Q'20 published results included $0.5 million (4Q'20: $1
million) of income within Foreign Exchange; $6 million (4Q'20: $6
million) within Rates; $(3) million (4Q'20: $1 million) within
Commodities and $(1) million (4Q'20: $(1) million) within Global
Credit now reported in Financing and Security Services
4 1Q'20 published results included $3 million (4Q'20: $3
million) of income in Commodities now reported in Credit
Markets
5 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
6 Variance is better/(worse) other than risk-weighted assets,
assets and liabilities which is increase/(decrease)
7 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
8 Change is the basis points (bps) difference between the two
periods rather than the percentage change
9 Change is the percentage points difference between the two
periods rather than the percentage change
10 Not meaningful
Performance highlights
-- Underlying profit before tax of $904 million was up 19 per
cent driven mainly by lower impairments, partially offset by higher
expenses and lower income. Underlying profit doubled excluding a
$305m reduction in the debit valuation adjustment (DVA)
-- Underlying operating income of $2,192 million was down 14 per
cent (down 2 per cent excluding DVA) primarily as a result of lower
Macro Trading income in Financial Markets, and the lower interest
rate environment impacting Cash Management
-- Good balance sheet momentum with loans and advances to
customers up 4 per cent since 31 December 2020
-- Risk-weighted assets up $5 billion since 31 December 2020
mainly as a result of client demand-led asset growth
-- RoTE increased to 11.2 per cent from 9.1 per cent
Consumer, Private & Business Banking(1)
Constant Constant
currency currency
1Q'21 1Q'20 Change(3) change(2,3) 4Q'20 Change(3) change(2,3)
$million $million % % $million % %
-------------------------------- ---------- ---------- --------- ---------- --------- ------------
Operating income 1,500 1,483 1 - 1,286 17 16
Transaction Banking 6 5 20 20 5 20 -
---------- ---------- --------- ------------ ---------- --------- ------------
Trade 6 5 20 20 5 20 -
---------- ---------- --------- ------------ ---------- --------- ------------
Wealth Management 641 530 21 20 436 47 46
Retail Products 848 944 (10) (12) 846 - (1)
---------- ---------- --------- ------------ ---------- --------- ------------
CCPL & other unsecured lending 320 304 5 3 303 6 5
Deposits 232 470 (51) (51) 269 (14) (15)
Mortgage & Auto 247 136 82 75 234 6 4
Other Retail Products 49 34 44 39 40 23 25
---------- ---------- --------- ------------ ---------- --------- ------------
Other 5 4 25 25 (1) nm nm
Operating expenses (991) (1,015) 2 4 (1,129) 12 13
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Operating profit before
impairment
losses and taxation 509 468 9 8 157 nm nm
Credit impairment (49) (198) 75 76 (155) 68 69
Other impairment - - nm nm (9) 100 100
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Underlying profit/(loss) before
taxation 460 270 70 73 (7) nm nm
Restructuring (9) (5) (80) (80) (43) 79 80
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Statutory profit/(loss) before
taxation 451 265 70 72 (50) nm nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Total assets 133,333 119,901 11 7 131,783 1 3
Of which: loans and advances
to customers(4) 130,841 117,679 11 7 129,230 1 3
Total liabilities 174,556 163,619 7 3 177,709 (2) (1)
Of which: customer accounts(4) 170,172 160,120 6 3 173,506 (2) (1)
Risk-weighted assets 54,610 50,531 8 nm 53,093 3 nm
Underlying return on
risk-weighted
assets (%)(5) 3.4 2.1 130bps nm (0.1) 350bps nm
Underlying return on tangible
equity (%)(5) 17.8 10.4 740bps nm (0.2) 1,800bps nm
Cost to income ratio (%)(6) 66.1 68.4 2.3 2.6 87.8 21.7 21.9
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
1 Following a reorganisation, there has been an integration of
Private Banking and Retail Banking to Consumer, Private &
Business Banking
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 Variance is better/(worse) other than risk-weighted assets,
assets and liabilities which is increase/(decrease)
4 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
5 Change is the basis points (bps) difference between the two
periods rather than the percentage change
6 Change is the percentage points difference between the two
periods rather than the percentage change
7 Not meaningful
Performance highlights
-- Underlying profit before tax of $460 million was up 70 per
cent driven by higher income, lower expenses and lower credit
impairments
-- Underlying operating income of $1,500 million was up 1 per
cent (flat on a constant currency basis) as strong double-digit
increases in Wealth Management and Mortgage & Auto income more
than offset the impact of lower interest rates on Retail
Deposits
-- Loans and advances to customers were up 1 per cent and up 3
per cent on a constant currency basis since 31 December 2020
-- RoTE increased from 10.4 per cent to 17.8 per cent
Central & other items (segment)
Constant Constant
currency currency
1Q'21 1Q'20 Change(2) change(1,2) 4Q'20 Change(2) change(1,2)
$million $million % % $million % %
-------------------------------- ---------- ---------- --------- ---------- --------- ------------
Operating income 237 300 (21) (21) 93 155 157
Treasury 257 325 (21) (21) 92 179 176
Other (20) (25) 20 28 1 nm nm
Operating expenses (201) (153) (31) (22) (461) 56 57
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Operating profit/(loss) before
impairment losses and taxation 36 147 (76) (73) (368) 110 110
Credit impairment (1) (9) 89 83 (17) 94 94
Other impairment - 1 (100) (100) (11) 100 100
Profit from associates and joint
ventures 47 55 (15) (15) 14 nm nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Underlying profit/(loss) before
taxation 82 194 (58) (55) (382) 121 121
Restructuring (25) (11) (127) (108) (76) 67 67
Goodwill impairment - (258) 100 100 - nm nm
Other items - 14 (100) (100) (9) 100 100
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Statutory profit/(loss) before
taxation 57 (61) 193 183 (467) 112 112
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Total assets 280,522 248,622 13 11 268,964 4 5
Of which: loans and advances
to customers(3) 21,620 13,037 66 57 19,075 13 15
Total liabilities 85,073 71,497 19 18 79,570 7 8
Of which: customer accounts(3) 8,503 8,244 3 2 7,869 8 10
Risk-weighted assets 51,884 53,065 (2) nm 50,650 2 nm
Underlying return on
risk-weighted
assets (%)(4) 0.6 1.5 (90)bps nm (3.1) 370bps nm
Underlying return on tangible
equity (%)(4) 1.7 4.5 (280)bps nm (29.8) 3,150bps nm
Cost to income ratio (%)
(excluding
UK bank levy)(5) 84.8 51.0 (33.8) (29.5) 139.8 55.0 60.7
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Variance is better/(worse) other than risk-weighted assets,
assets and liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
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 Not meaningful
Performance highlights
-- Underlying profit before tax more than halved to $82 million
with income down 21 per cent reflecting lower realisation gains
within Treasury
-- Expenses increased 31 per cent with performance-related pay
accruals normalising
-- Profit from associates and joint ventures was down 15 per
cent primarily reflecting the reduction in the Group's shareholding
in China Bohai Bank from 19.99 per cent in 1Q'20 to 16.26 per
cent
Underlying performance by region
1Q'21
----------------------------------------------- -----------------------------------------------------------------
Africa & Europe & Central &
Asia(1) Middle East Americas other items Total
$million $million $million $million $million
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Operating income 2,817 590 550 (28) 3,929
Operating expenses (1,572) (393) (366) (163) (2,494)
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Operating profit/(loss) before impairment
losses and taxation 1,245 197 184 (191) 1,435
Credit impairment (58) (7) 47 (2) (20)
Other impairment - - 2 (18) (16)
Profit from associates and joint ventures 47 - - - 47
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Underlying profit/(loss) before taxation 1,234 190 233 (211) 1,446
Restructuring (5) (1) (19) (8) (33)
Goodwill impairment - - - - -
Other items - - - - -
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Statutory profit/(loss) before taxation 1,229 189 214 (219) 1,413
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Total assets 468,748 57,618 269,560 8,977 804,903
Of which: loans and advances to customers(2) 247,424 28,548 71,203 - 347,175
---------- -------------- ---------- ------------- ----------
loans and advances to customers 235,572 27,110 29,402 - 292,084
loans held at fair value through profit
or loss 11,852 1,438 41,801 - 55,091
---------- -------------- ---------- ------------- ----------
Total liabilities 418,288 39,102 224,097 71,141 752,628
Of which: customer accounts(2) 334,908 31,465 134,574 - 500,947
Risk-weighted assets 178,541 50,640 49,848 (2,359) 276,670
Cost to income ratio (%) 55.8 66.6 66.5 nm(3) 63.5
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
1Q'20
----------------------------------------------- -----------------------------------------------------------------
Africa & Europe & Central &
Asia(1) Middle East Americas other items Total
$million $million $million $million $million
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Operating income 2,973 661 546 147 4,327
Operating expenses (1,525) (403) (343) (87) (2,358)
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Operating profit before impairment losses
and taxation 1,448 258 203 60 1,969
Credit impairment (649) (211) (102) 6 (956)
Other impairment 165 - - (11) 154
Profit from associates and joint ventures 53 - - 2 55
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Underlying profit before taxation 1,017 47 101 57 1,222
Restructuring (50) (7) (14) (21) (92)
Goodwill impairment - - - (258) (258)
Other items - - - 14 14
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Statutory profit/(loss) before taxation 967 40 87 (208) 886
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
Total assets 456,691 63,555 233,572 11,098 764,916
Of which: loans and advances to customers(2) 222,593 32,338 66,687 - 321,618
---------- -------------- ---------- ------------- ----------
loans and advances to customers 212,150 30,344 28,740 - 271,234
loans held at fair value through profit
or loss 10,443 1,994 37,947 - 50,384
---------- -------------- ---------- ------------- ----------
Total liabilities 397,747 37,875 238,508 40,782 714,912
Of which: customer accounts(2) 312,244 30,059 140,347 - 482,650
Risk-weighted assets 177,754 51,414 45,944 (2,459) 272,653
Cost to income ratio (%) 51.3 61.0 62.8 59.2 54.5
----------------------------------------------- ---------- -------------- ---------- ------------- ----------
1 Following a reorganisation, there has been an integration of
Greater China & North Asia and ASEAN & South Asia to
Asia
2 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
3 Not meaningful
Asia(1)
Constant Constant
currency currency
1Q'21 1Q'20 Change(3) change(2,3) 4Q'20 Change(3) change(2,3)
$million $million % % $million % %
-------------------------------- ---------- ---------- --------- ---------- --------- ------------
Operating income 2,817 2,973 (5) (7) 2,357 20 19
Operating expenses (1,572) (1,525) (3) - (1,729) 9 10
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Operating profit before
impairment
losses and taxation 1,245 1,448 (14) (15) 628 98 100
Credit impairment (58) (649) 91 91 (200) 71 71
Other impairment - 165 (100) (100) (40) 100 100
Profit from associates and joint
ventures 47 53 (11) (11) 15 nm nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Underlying profit before
taxation 1,234 1,017 21 20 403 nm nm
Restructuring (5) (50) 90 90 (62) 92 92
Other items - - nm nm (8) 100 100
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Statutory profit before taxation 1,229 967 27 26 333 nm nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Total assets 468,748 456,691 3 - 467,212 - 2
Of which: loans and advances
to customers(4) 247,424 222,593 11 7 239,092 3 5
Total liabilities 418,288 397,747 5 2 421,711 (1) -
Of which: customer accounts(4) 334,908 312,244 7 4 334,623 - 1
Risk-weighted assets 178,541 177,754 - nm(6) 174,283 2 nm(6)
Cost to income ratio (%)(5) 55.8 51.3 (4.5) (4.2) 73.4 17.6 18.0
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
1 Following a reorganisation, there has been an integration of
Greater China & North Asia and ASEAN & South Asia to
Asia
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 Variance is better/(worse) other than risk-weighted assets,
assets and liabilities which is increase/(decrease)
4 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
5 Change is the percentage points difference between the two
periods rather than the percentage change
6 Not meaningful
Performance highlights
-- Underlying profit before tax of $1,234 million was up 21 per
cent as significantly lower credit impairments more than offset
lower income and a non-repeat of a $165 million other impairment
recovery in 1Q'20
-- Underlying operating income of $2,817 million was down 5 per
cent, predominantly driven by lower Financial Markets income and
the impact of lower interest rates. This was partially offset by a
strong performance in Wealth Management and Mortgages &
Auto
-- Loans and advances to customers were up 3 per cent since 31
December 2020, primarily in Hong Kong, Singapore, China and
Korea
-- Risk-weighted assets were up $4 billion since 31 December
2020, mainly from client demand-led asset growth
Africa & Middle East
Constant Constant
currency currency
1Q'21 1Q'20 Change(2) change(1,2) 4Q'20 Change(2) change(1,2)
$million $million % % $million % %
-------------------------------- ---------- ---------- --------- ---------- --------- ------------
Operating income 590 661 (11) (8) 519 14 12
Operating expenses (393) (403) 2 (1) (464) 15 12
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Operating profit before
impairment
losses and taxation 197 258 (24) (23) 55 nm 161
Credit impairment (7) (211) 97 97 (130) 95 95
Other impairment - - nm nm (13) 100 100
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Underlying profit/(loss) before
taxation 190 47 nm nm (88) nm nm
Restructuring (1) (7) 86 86 (68) 99 99
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Statutory profit/(loss) before
taxation 189 40 nm nm (156) nm nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Total assets 57,618 63,555 (9) (11) 58,069 (1) (1)
Of which: loans and advances
to customers(3) 28,548 32,338 (12) (13) 29,413 (3) (3)
Total liabilities 39,102 37,875 3 1 39,980 (2) (2)
Of which: customer accounts(3) 31,465 30,059 5 2 32,106 (2) (2)
Risk-weighted assets 50,640 51,414 (2) nm(5) 51,149 (1) nm(5)
Cost to income ratio (%)(4) 66.6 61.0 (5.6) (6.3) 89.4 22.8 18.8
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Variance is better/(worse) other than risk-weighted assets,
assets and liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
4 Change is the percentage points difference between the two
periods rather than the percentage change
5 Not meaningful
Performance highlights
-- Underlying profit before tax of $190 million was more than
four times higher, mainly driven by significantly reduced credit
impairments, particularly in UAE which has returned to
profitability, and a 2 per cent reduction in expenses with
efficiency actions funding ongoing strategic investments
-- Underlying operating income of $590 million was 11 per cent
lower (down 8 per cent on a constant currency basis and excluding
the debit valuation adjustment), mainly due to the impact of lower
interest rates, partly offset by growth in Wealth Management
income
-- Loans and advances to customers were down 3 per cent and
customer accounts were down 2 per cent since 31 December 2020
-- Risk-weighted assets were down 1 per cent since 31 December
2020
Europe & Americas
Constant Constant
currency currency
1Q'21 1Q'20 Change(2) change(1,2) 4Q'20 Change(2) change(1,2)
$million $million % % $million % %
-------------------------------- ---------- ---------- --------- ---------- --------- ------------
Operating income 550 546 1 - 404 36 36
Operating expenses (366) (343) (7) (4) (362) (1) 1
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Operating profit before
impairment
losses and taxation 184 203 (9) (8) 42 nm nm
Credit impairment 47 (102) 146 147 (44) nm nm
Other impairment 2 - nm nm (5) 140 140
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Underlying profit/(loss) before
taxation 233 101 131 136 (7) nm nm
Restructuring (19) (14) (36) (36) (27) 30 30
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Statutory profit/(loss) before
taxation 214 87 146 152 (34) nm nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Total assets 269,560 233,572 15 15 253,438 6 7
Of which: loans and advances
to customers(3) 71,203 66,687 7 5 67,771 5 5
Total liabilities 224,097 238,508 (6) (7) 211,840 6 6
Of which: customer accounts(3) 134,574 140,347 (4) (5) 125,425 7 7
Risk-weighted assets 49,848 45,944 8 nm(5) 45,758 9 nm(5)
Cost to income ratio (%)(4) 66.5 62.8 (3.7) (2.8) 89.6 23.1 24.6
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Variance is better/(worse) other than risk-weighted assets,
assets and liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
4 Change is the percentage points difference between the two
periods rather than the percentage change
5 Not meaningful
Performance highlights
-- Underlying profit before tax of $233 million more than
doubled, predominantly driven by reduced credit impairment
-- Underlying operating income of $550 million was up 1 per cent
and up 42 per cent excluding the debit valuation adjustment
-- Loans and advances to customers grew 5 per cent since 31
December 2020 while customer accounts grew 7 per cent
Central & other items (region)
Constant Constant
currency currency
1Q'21 1Q'20 Change(2) change(1,2) 4Q'20 Change(2) change(1,2)
$million $million % % $million % %
-------------------------------- ---------- ---------- --------- ---------- --------- ------------
Operating income (28) 147 (119) (119) (81) 65 65
Operating expenses (163) (87) (87) (60) (394) 59 60
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Operating profit/(loss) before
impairment losses and taxation (191) 60 nm nm (475) 60 61
Credit impairment (2) 6 (133) (133) - nm nm
Other impairment (18) (11) (64) (64) (24) 25 22
Profit from associates and joint
ventures - 2 (100) (100) (1) 100 nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Underlying profit/(loss) before
taxation (211) 57 nm nm (500) 58 58
Restructuring (8) (21) 62 62 (91) 91 91
Goodwill impairment - (258) 100 100 - nm nm
Other items - 14 (100) (100) (1) 100 nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Statutory profit/(loss) before
taxation (219) (208) (5) 1 (592) 63 63
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
Total assets 8,977 11,098 (19) (20) 10,331 (13) (13)
Total liabilities 71,141 40,782 74 74 64,790 10 10
Risk-weighted assets (2,359) (2,459) 4 nm (2,356) - nm
Cost to income ratio (%)
(excluding
UK bank levy)(3) nm 59.2 nm nm (77.8) nm nm
-------------------------------- ---------- ---------- --------- ------------ ---------- --------- ------------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Variance is better/(worse) other than risk-weighted assets,
assets and liabilities which is increase/(decrease)
3 Change is the percentage points difference between the two
periods rather than the percentage change
4 Not meaningful
Performance highlights
-- Underlying loss before tax of $211 million compared to 1Q'20
profit of $57 million due to lower returns paid to Treasury on the
equity provided to the regions in a lower interest rate environment
and increased expenses reflecting a normalisation of
performance-related pay accruals
Underlying performance by key market
1Q'21
------------------- -------------------------------------------------------------------------------------------------
Hong
Kong Korea China Singapore India Indonesia UAE UK US
$million $million $million $million $million $million $million $million $million
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Operating income 949 284 301 457 312 62 137 297 192
Operating expenses (475) (185) (172) (238) (167) (42) (92) (174) (140)
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Operating profit
before impairment
losses and
taxation 474 99 129 219 145 20 45 123 52
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Credit impairment (26) 13 (1) 35 (34) (11) (2) 33 15
Other impairment - - - - - - - 2 -
Profit from
associates
and joint ventures - - 47 - - - - - -
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Underlying profit
before taxation 448 112 175 254 111 9 43 158 67
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Total assets
employed 173,384 66,241 39,410 88,630 29,872 4,912 19,891 183,074 70,427
Of which: loans
and
advances to
customers(1) 83,293 42,453 18,364 54,863 14,875 2,331 9,962 48,339 18,327
Total liabilities
employed 162,760 57,624 35,088 85,059 21,849 3,508 13,374 142,130 69,128
Of which:
customer
accounts(1) 135,436 46,191 25,614 64,030 16,059 2,477 10,352 87,044 39,342
Cost to income
ratio
(%) 50.1 65.1 57.1 52.1 53.5 67.7 67.2 58.6 72.9
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
1Q'20
------------------- -------------------------------------------------------------------------------------------------
Hong
Kong Korea China Singapore India Indonesia UAE UK US
$million $million $million $million $million $million $million $million $million
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Operating income 957 322 275 375 409 144 159 330 171
Operating expenses (482) (172) (161) (239) (163) (44) (103) (166) (140)
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Operating profit
before impairment
losses and
taxation 475 150 114 136 246 100 56 164 31
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Credit impairment (96) (11) (83) (287) (95) (14) (116) (75) (27)
Other impairment (1) - - - - - - - -
Profit from
associates
and joint ventures - - 53 - - - - - -
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Underlying
profit/(loss)
before taxation 378 139 84 (151) 151 86 (60) 89 4
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Total assets
employed 167,075 58,127 36,293 90,950 31,807 5,152 22,432 148,466 73,973
Of which: loans
and
advances to
customers(1) 75,306 34,550 16,230 47,018 16,606 2,398 10,731 41,134 21,456
Total liabilities
employed 149,659 50,560 29,270 90,360 21,853 3,468 14,626 158,123 70,635
Of which:
customer
accounts(1) 122,450 40,874 22,355 67,170 14,520 2,010 11,793 94,480 40,637
Cost to income
ratio
(%) 50.4 53.4 58.5 63.7 39.9 30.6 64.8 50.3 81.9
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
1 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
Quarterly underlying operating income by product
1Q'21 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19
$million $million $million $million $million $million $million $million
---------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Transaction Banking 643 652 665 721 800 834 887 901
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Trade 277 249 255 230 260 259 282 282
Cash Management 366 403 410 491 540 575 605 619
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Financial Markets(1) 1,325 963 1,189 1,236 1,546 1,038 1,147 1,092
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Macro Trading(2,3) 677 441 522 760 831 458 463 482
Credit Markets(2,3) 441 414 464 476 267 376 427 374
Credit Trading 131 119 129 181 (25) 83 110 83
Financing
Solutions &
Issuance 310 295 335 295 292 293 317 291
Structured Finance 99 101 101 88 92 160 96 106
Financing & Security
Services(2) 108 76 124 113 51 116 147 119
DVA - (69) (22) (201) 305 (72) 14 11
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Lending & Portfolio
Management(1) 233 218 226 235 205 207 212 211
Wealth Management 641 436 568 434 530 415 488 511
Retail Products 849 848 859 913 946 960 975 976
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
CCPL & other
unsecured lending 320 303 309 295 304 311 315 320
Deposits 233 271 301 413 472 484 510 501
Mortgage & Auto 247 234 211 169 136 130 123 129
Other Retail
Products 49 40 38 36 34 35 27 26
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Treasury 257 92 40 178 325 196 335 251
Other (19) (10) (28) 3 (25) (53) (66) (59)
---------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total underlying
operating
income 3,929 3,199 3,519 3,720 4,327 3,597 3,978 3,883
---------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1 Following a reorganisation, there has been a reclassification
of balances relating to Corporate Finance, Financial Markets and
Lending & Portfolio Management including prior period numbers.
There is no change in the total income
2 1Q'20 published results included $0.5 million (4Q'20: $1
million, 3Q'20: $0.5 million, 2Q'20: $(2) million, 4Q'19: $2
million, 3Q'19: $2 million, 2Q'19: $(1) million) of income within
Foreign exchange; $6 million (4Q'20: $6 million, 3Q'20: $1 million,
2Q'20: $3 million, 4Q'19: -, 3Q'19: $7 million, 2Q'19: $1 million)
within Rates; $(3) million (4Q'20: $1 million, 3Q'20: $1 million,
2Q'20: -, 4Q'19: $2 million, 3Q'19: -, 2Q'19: $(2) million) within
Commodities and $(1) million (4Q'20: $(1) million, 3Q'20: $(1)
million, 2Q'20: $5 million, 4Q'19: $2 million, 3Q'19: $6 million,
2Q'19: $(1) million) within Global Credit which is now reported
within Financing and Security Services
3 1Q'20 published results included $3 million (4Q'20: $3
million, 3Q'20: $4 million, 2Q'20: $2 million, 4Q'19: $3 million,
3Q'19: $3 million, 2Q'19: $4 million) of income in Commodities now
reported in Credit Markets
Earnings per ordinary share
1Q'21 1Q'20 Change 4Q'20 Change
$million $million % $million %
--------------------------------------------- ---------- ---------- ---------- ------
Profit/(loss) for the period attributable
to equity holders 1,099 517 113 (476) nm(1)
--------------------------------------------- ---------- ---------- ------ ---------- ------
Non-controlling interest (7) (7) - (2) nm(1)
Dividend payable on preference shares
and AT1 classified as equity (65) (33) (97) (132) 51
--------------------------------------------- ---------- ---------- ------ ---------- ------
Profit/(loss) for the period attributable
to ordinary shareholders 1,027 477 115 (610) nm(1)
--------------------------------------------- ---------- ---------- ------ ---------- ------
Items normalised:
Provision for regulatory matters - (14) nm(1) - nm(1)
Restructuring 33 92 (64) 248 (87)
Profit from associates and joint ventures - - nm(1) - nm(1)
Gains arising on repurchase of subordinated
liabilities - - nm(1) - nm(1)
Goodwill impairment - 258 nm(1) - nm(1)
Net Gain on sale of Businesses - - nm(1) 9 nm(1)
Tax on normalised items (7) (3) (133) (72) 90
--------------------------------------------- ---------- ---------- ------ ---------- ------
Underlying profit/(loss) 1,053 810 30 (425) nm(1)
--------------------------------------------- ---------- ---------- ------ ---------- ------
Basic - Weighted average number of shares
(millions) 3,146 3,186 nm(1) 3,152 nm(1)
Diluted - Weighted average number of
shares (millions) 3,200 3,218 nm(1) 3,196 nm(1)
Basic earnings per ordinary share (cents)(2) 32.6 15.0 17.6 (19.4) 52.0
--------------------------------------------- ---------- ---------- ------ ---------- ------
Diluted earnings per ordinary share
(cents)(2) 32.1 14.8 17.3 (19.1) 51.2
--------------------------------------------- ---------- ---------- ------ ---------- ------
Underlying basic earnings per ordinary
share (cents)(2) 33.5 25.4 8.1 (13.5) 47.0
--------------------------------------------- ---------- ---------- ------ ---------- ------
Underlying diluted earnings per ordinary
share (cents)(2) 32.9 25.2 7.7 (13.3) 46.2
--------------------------------------------- ---------- ---------- ------ ---------- ------
1 Not meaningful
2 Change is the percentage points difference between the two
periods rather than the percentage change
Return on Tangible Equity
1Q'21 1Q'20 Change 4Q'20 Change
$million $million % $million %
---------------------------------------------- ---------- ---------- ---------- ------
Average parent company Shareholders'
Equity 46,026 44,511 3 45,814 -
Less Preference share premium (1,494) (1,494) - (1,494) -
Less Average intangible assets (5,068) (5,090) - (4,990) (2)
---------------------------------------------- ---------- ---------- ------ ---------- ------
Average Ordinary Shareholders' Tangible
Equity 39,464 37,927 4 39,330 -
---------------------------------------------- ---------- ---------- ------ ---------- ------
Profit/(loss) for the period attributable
to equity holders 1,099 517 113 (476) nm(1)
---------------------------------------------- ---------- ---------- ------ ---------- ------
Non-controlling interests (7) (7) - (2) nm(1)
Dividend payable on preference shares
and AT1 classified as equity (65) (33) (97) (132) 51
---------------------------------------------- ---------- ---------- ------ ---------- ------
Profit/(loss) for the period attributable
to ordinary shareholders 1,027 477 115 (610) nm(1)
---------------------------------------------- ---------- ---------- ------ ---------- ------
Items normalised:
Provision for regulatory matters - (14) nm(1) - nm(1)
Restructuring 33 92 (64) 248 (87)
Profit from associates and joint ventures - - nm(1) - nm(1)
Goodwill Impairment - 258 nm(1) - nm(1)
Net gain on sale of businesses - - nm(1) 9 nm(1)
Tax on normalised items (7) (3) (133) (72) 90
---------------------------------------------- ---------- ---------- ------ ---------- ------
Underlying profit for the period attributable
to ordinary shareholders 1,053 810 30 (425) nm(1)
---------------------------------------------- ---------- ---------- ------ ---------- ------
Underlying Return on Tangible Equity 10.8% 8.6% 220bps (4.3%) nm(1)
---------------------------------------------- ---------- ---------- ------ ---------- ------
Statutory Return on Tangible Equity 10.6% 5.1% 550bps (6.2%) nm(1)
---------------------------------------------- ---------- ---------- ------ ---------- ------
1 Not meaningful
Net Tangible Asset Value per Share
31.03.21 31.03.20 Change 31.12.20 Change
$m $m % $m %
--------------------------------------- -------- -------- -------- ------
Parent company shareholders' equity 46,166 44,185 4 45,886 1
Less Preference share premium (1,494) (1,494) - (1,494) -
Less Intangible assets (5,072) (4,890) (4) (5,063) -
--------------------------------------- -------- -------- ------ -------- ------
Net shareholders tangible equity 39,600 37,801 5 39,329 1
--------------------------------------- -------- -------- ------ -------- ------
Ordinary shares in issue, excluding
own shares ('m) 3,118 3,147 (1) 3,150 (1)
--------------------------------------- -------- -------- ------ -------- ------
Net Tangible Asset Value per share (c) 1,270 1,201 69 1,249 21
--------------------------------------- -------- -------- ------ -------- ------
Underlying versus statutory results reconciliations
Reconciliations between underlying and statutory results are set
out in the tables below:
Operating income by client segment
1Q'21
---------------------------- ------------------------------------------------------
Consumer,
Corporate, Private
Commercial &
& Institutional Business Central &
Banking(1) Banking(1) other items Total
$million $million $million $million
---------------------------- ---------------- ----------- ------------ ---------
Underlying operating income 2,192 1,500 237 3,929
Restructuring 10 - - 10
---------------------------- ---------------- ----------- ------------ ---------
Statutory operating income 2,202 1,500 237 3,939
---------------------------- ---------------- ----------- ------------ ---------
1Q'20
---------------------------- ------------------------------------------------------
Consumer,
Corporate, Private
Commercial &
& Institutional Business Central &
Banking(1) Banking(1) other items Total
$million $million $million $million
---------------------------- ---------------- ----------- ------------ ---------
Underlying operating income 2,544 1,483 300 4,327
Restructuring 9 - (1) 8
---------------------------- ---------------- ----------- ------------ ---------
Statutory operating income 2,553 1,483 299 4,335
---------------------------- ---------------- ----------- ------------ ---------
1 Following a reorganisation, there has been an integration of
Corporate & Institutional Banking and Commercial Banking to
Corporate, Commercial & Institutional Banking; Private Banking
and Retail Banking to Consumer, Private & Business Banking
Operating income by region
1Q'21
---------------------------- -----------------------------------------------------------------
Africa & Europe & Central &
Asia(1) Middle East Americas other items Total
$million $million $million $million $million
---------------------------- ---------- -------------- ---------- ------------- ----------
Underlying operating income 2,817 590 550 (28) 3,929
Restructuring 10 1 - (1) 10
---------------------------- ---------- -------------- ---------- ------------- ----------
Statutory operating income 2,827 591 550 (29) 3,939
---------------------------- ---------- -------------- ---------- ------------- ----------
1Q'20
---------------------------- -----------------------------------------------------------------
Africa & Europe & Central &
Asia(1) Middle East Americas other items Total
$million $million $million $million $million
---------------------------- ---------- -------------- ---------- ------------- ----------
Underlying operating income 2,973 661 546 147 4,327
Restructuring 24 3 - (19) 8
---------------------------- ---------- -------------- ---------- ------------- ----------
Statutory operating income 2,997 664 546 128 4,335
---------------------------- ---------- -------------- ---------- ------------- ----------
1 Following a reorganisation, there has been an integration of
Greater China & North Asia and ASEAN & South Asia to
Asia
Profit before taxation (PBT)
1Q'21
------------------------------------------ ------------------------------------------------------------------
Provision
for regulatory Goodwill
Underlying matters Restructuring impairment Statutory
$million $million $million $million $million
------------------------------------------ ---------- --------------- ------------- ----------- ---------
Operating income 3,929 - 10 - 3,939
Operating expenses (2,494) - (34) - (2,528)
------------------------------------------ ---------- --------------- ------------- ----------- ---------
Operating profit/(loss) before impairment
losses and taxation 1,435 - (24) - 1,411
Credit impairment (20) - 3 - (17)
Other impairment (16) - (12) - (28)
Profit from associates and joint ventures 47 - - - 47
------------------------------------------ ---------- --------------- ------------- ----------- ---------
Profit/(loss) before taxation 1,446 - (33) - 1,413
------------------------------------------ ---------- --------------- ------------- ----------- ---------
1Q'20
------------------------------------------ ------------------------------------------------------------------
Provision
for regulatory Goodwill
Underlying matters Restructuring impairment Statutory
$million $million $million $million $million
------------------------------------------ ---------- --------------- ------------- ----------- ---------
Operating income 4,327 - 8 - 4,335
Operating expenses (2,358) 14 (24) - (2,368)
------------------------------------------ ---------- --------------- ------------- ----------- ---------
Operating profit/(loss) before impairment
losses and taxation 1,969 14 (16) - 1,967
Credit impairment (956) - (6) - (962)
Other impairment 154 - (62) (258) (166)
Profit from associates and joint ventures 55 - (8) - 47
------------------------------------------ ---------- --------------- ------------- ----------- ---------
Profit/(loss) before taxation 1,222 14 (92) (258) 886
------------------------------------------ ---------- --------------- ------------- ----------- ---------
Profit before taxation (PBT) by client segment
1Q'21
---------------------------------------------- ------------------------------------------------------
Consumer,
Corporate, Private
Commercial &
& Institutional Business Central &
Banking(1) Banking(1) other items Total
$million $million $million $million
---------------------------------------------- ---------------- ----------- ------------ ---------
Operating income 2,192 1,500 237 3,929
---------------- ----------- ------------ ---------
External 2,082 1,401 446 3,929
Inter-segment 110 99 (209) -
---------------- ----------- ------------ ---------
Operating expenses (1,302) (991) (201) (2,494)
---------------------------------------------- ---------------- ----------- ------------ ---------
Operating profit before impairment losses and
taxation 890 509 36 1,435
Credit impairment 30 (49) (1) (20)
Other impairment (16) - - (16)
Profit from associates and joint ventures - - 47 47
---------------------------------------------- ---------------- ----------- ------------ ---------
Underlying profit before taxation 904 460 82 1,446
Restructuring 1 (9) (25) (33)
Goodwill impairment - - - -
Other items - - - -
---------------------------------------------- ---------------- ----------- ------------ ---------
Statutory profit before taxation 905 451 57 1,413
---------------------------------------------- ---------------- ----------- ------------ ---------
1Q'20
---------------------------------------------- ------------------------------------------------------
Consumer,
Corporate, Private
Commercial &
& Institutional Business Central &
Banking(1) Banking(1) other items Total
$million $million $million $million
---------------------------------------------- ---------------- ----------- ------------ ---------
Operating income 2,544 1,483 300 4,327
---------------- ----------- ------------ ---------
External 2,547 1,207 573 4,327
Inter-segment (3) 276 (273) -
---------------- ----------- ------------ ---------
Operating expenses (1,190) (1,015) (153) (2,358)
---------------------------------------------- ---------------- ----------- ------------ ---------
Operating profit before impairment losses and
taxation 1,354 468 147 1,969
Credit impairment (749) (198) (9) (956)
Other impairment 153 - 1 154
Profit from associates and joint ventures - - 55 55
---------------------------------------------- ---------------- ----------- ------------ ---------
Underlying profit before taxation 758 270 194 1,222
Restructuring (76) (5) (11) (92)
Goodwill impairment - - (258) (258)
Other items - - 14 14
---------------------------------------------- ---------------- ----------- ------------ ---------
Statutory profit/(loss) before taxation 682 265 (61) 886
---------------------------------------------- ---------------- ----------- ------------ ---------
1 Following a reorganisation, there has been an integration of
Corporate & Institutional Banking and Commercial Banking to
Corporate, Commercial & Institutional Banking; Private Banking
and Retail Banking to Consumer, Private & Business Banking
Profit before taxation (PBT) by region
1Q'21
------------------------------------------ -----------------------------------------------------------------
Africa & Europe & Central &
Asia(1) Middle East Americas other items Total
$million $million $million $million $million
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Operating income 2,817 590 550 (28) 3,929
Operating expenses (1,572) (393) (366) (163) (2,494)
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Operating profit/(loss) before impairment
losses and taxation 1,245 197 184 (191) 1,435
Credit impairment (58) (7) 47 (2) (20)
Other impairment - - 2 (18) (16)
Profit from associates and joint ventures 47 - - - 47
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Underlying profit/(loss) before taxation 1,234 190 233 (211) 1,446
Restructuring (5) (1) (19) (8) (33)
Goodwill impairment - - - - -
Other items - - - - -
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Statutory profit/(loss) before taxation 1,229 189 214 (219) 1,413
------------------------------------------ ---------- -------------- ---------- ------------- ----------
1Q'20
------------------------------------------ -----------------------------------------------------------------
Africa & Europe & Central &
Asia(1) Middle East Americas other items Total
$million $million $million $million $million
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Operating income 2,973 661 546 147 4,327
Operating expenses (1,525) (403) (343) (87) (2,358)
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Operating profit before impairment losses
and taxation 1,448 258 203 60 1,969
Credit impairment (649) (211) (102) 6 (956)
Other impairment 165 - - (11) 154
Profit from associates and joint ventures 53 - - 2 55
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Underlying profit before taxation 1,017 47 101 57 1,222
Restructuring (50) (7) (14) (21) (92)
Goodwill impairment - - - (258) (258)
Other items - - - 14 14
------------------------------------------ ---------- -------------- ---------- ------------- ----------
Statutory profit/(loss) before taxation 967 40 87 (208) 886
------------------------------------------ ---------- -------------- ---------- ------------- ----------
1 Following a reorganisation, there has been an integration of
Greater China & North Asia and ASEAN & South Asia to
Asia
Return on tangible equity (RoTE)
1Q'21
--------------------------------------------------------- ----------------------------------------------------
Consumer,
Private
&
Business Central &
Corporate,
Commercial
& Institutional
Banking(1) Banking(1) Other Items Total
% % % %
--------------------------------------------------------- ---------------- ------------ ------------- -----
Underlying RoTE 11.2 17.8 1.7 10.8
Provision for regulatory matters - - - -
Restructuring
Of which: Income 0.2 - - 0.1
Of which: Expenses (0.2) (0.5) (0.7) (0.3)
Of which: Credit impairment - - - -
Of which: Other impairment - - (0.7) (0.1)
Of which: Profit from associates and joint ventures - - - -
Goodwill impairment - - - -
Tax on normalised items 0.1 0.1 0.3 0.1
--------------------------------------------------------- ---------------- ------------ ------------- -----
Statutory RoTE 11.3 17.4 0.6 10.6
--------------------------------------------------------- ---------------- ------------ ------------- -----
1Q'20
--------------------------------------------------------- ----------------------------------------------------
Consumer,
Private
&
Business Central &
Corporate,
Commercial
& Institutional
Banking(1) Banking(1) Other Items Total
% % % %
--------------------------------------------------------- ---------------- ------------ ------------- -----
Underlying RoTE 9.1 10.4 4.5 8.6
Provision for regulatory matters - - 0.9 0.1
Restructuring
Of which: Income 0.1 - (0.1) 0.1
Of which: Expenses (0.3) (0.3) (0.1) (0.3)
Of which: Credit impairment (0.1) - - (0.1)
Of which: Other impairment (1.0) - - (0.7)
Of which: Profit from associates and joint ventures - - (0.6) (0.1)
Goodwill impairment - - (16.5) (2.7)
Tax on normalised items 0.4 0.2 (1.2) 0.2
--------------------------------------------------------- ---------------- ------------ ------------- -----
Statutory RoTE 8.2 10.3 (13.1) 5.1
--------------------------------------------------------- ---------------- ------------ ------------- -----
1 Following a reorganisation, there has been an integration of
Corporate & Institutional Banking and Commercial Banking to
Corporate, Commercial & Institutional Banking; Private Banking
and Retail Banking to Consumer, Private & Business Banking
Earnings per ordinary share (EPS)
1Q'21
------------- -------------------------------------------------------------------------------------------------------------
Gains
arising
on
repurchase
Provision Profit of senior Net Gain
for from and on Sale Tax on
regulatory joint subordinated of Goodwill normalised
Underlying matters Restructuring venture liabilities Businesses impairment items Statutory
$ million $ million $ million $ million $ million $ million $ million $ million $ million
------------- ---------- ---------- ------------- --------- ------------ ---------- ---------- ---------- ---------
Profit for
the year
attributable
to ordinary
shareholders 1,053 - (33) - - - - 7 1,027
Basic -
Weighted
average
number of
shares
(millions) 3,146 3,146
Basic
earnings per
ordinary
share
(cents) 33.5 32.6
------------- ---------- ---------- ------------- --------- ------------ ---------- ---------- ---------- ---------
1Q'20
------------- -------------------------------------------------------------------------------------------------------------
Gains
arising
on
repurchase
Provision Profit of senior Net Gain
for from and on Sale Tax on
regulatory joint subordinated of Goodwill normalised
Underlying matters Restructuring venture liabilities Businesses impairment items Statutory
$ million $ million $ million $ million $ million $ million $ million $ million $ million
------------- ---------- ---------- ------------- --------- ------------ ---------- ---------- ---------- ---------
Profit for
the year
attributable
to ordinary
shareholders 810 14 (92) - - - (258) 3 477
Basic -
Weighted
average
number of
shares
(millions) 3,186 3,186
Basic
earnings per
ordinary
share
(cents) 25.4 15.0
------------- ---------- ---------- ------------- --------- ------------ ---------- ---------- ---------- ---------
Risk review
Credit quality by client segment
31.03.21
--------------------------- -----------------------------------------------------------------------------------------
Customers
--------- --------------------------------------------------- ------------ -----------
Corporate, Consumer,
Commercial Private Central
& Institutional & Business & other Customer Undrawn Financial
Banks Banking Banking items Total commitments guarantees
Amortised cost $million $million $million $million $million $million $million
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Stage 1 47,808 121,259 128,351 20,757 270,367 141,370 49,285
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 37,990 68,937 122,490 20,438 211,865 122,165 31,654
- Satisfactory 9,818 52,322 5,861 319 58,502 19,205 17,631
--------- ---------------- ----------- --------- --------- ------------ -----------
Stage 2 222 17,059 2,150 3 19,212 10,784 3,303
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 32 2,162 1,504 - 3,666 5,064 633
- Satisfactory 158 12,732 281 3 13,016 4,806 1,877
- Higher risk 32 2,165 365 - 2,530 914 793
--------- ---------------- ----------- --------- --------- ------------ -----------
Of which (stage 2):
- Less than 30 days past
due 23 102 279 - 381 - -
- More than 30 days past
due - 419 369 - 788 - -
Stage 3, credit-impaired
financial
assets - 7,212 1,504 2 8,718 1 675
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Gross balance(1) 48,030 145,530 132,005 20,762 298,297 152,155 53,263
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Stage 1 (13) (79) (406) (1) (486) (41) (18)
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong (6) (20) (319) - (339) (19) (13)
- Satisfactory (7) (59) (87) (1) (147) (22) (5)
--------- ---------------- ----------- --------- --------- ------------ -----------
Stage 2 (1) (483) (200) - (683) (60) (27)
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong - (24) (117) - (141) (7) (3)
- Satisfactory (1) (292) (22) - (314) (37) (12)
- Higher risk - (167) (61) - (228) (16) (12)
--------- ---------------- ----------- --------- --------- ------------ -----------
Of which (stage 2):
- Less than 30 days past
due - (4) (22) - (26) - -
- More than 30 days past
due - (6) (61) - (67) - -
Stage 3, credit-impaired
financial
assets - (4,365) (677) (2) (5,044) - (182)
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Total credit impairment (14) (4,927) (1,283) (3) (6,213) (101) (227)
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Net carrying value 48,016 140,603 130,722 20,759 292,084
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Stage 1 0.0% 0.1% 0.3% 0.0% 0.2% 0.0% 0.0%
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 0.0% 0.0% 0.3% 0.0% 0.2% 0.0% 0.0%
- Satisfactory 0.1% 0.1% 1.5% 0.3% 0.3% 0.1% 0.0%
--------- ---------------- ----------- --------- --------- ------------ -----------
Stage 2 0.5% 2.8% 9.3% 0.0% 3.6% 0.6% 0.8%
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 0.0% 1.1% 7.8% 0.0% 3.8% 0.1% 0.5%
- Satisfactory 0.6% 2.3% 7.8% 0.0% 2.4% 0.8% 0.6%
- Higher risk 0.0% 7.7% 16.7% 0.0% 9.0% 1.8% 1.5%
--------- ---------------- ----------- --------- --------- ------------ -----------
Of which (stage 2):
- Less than 30 days past
due 0.0% 3.9% 7.9% 0.0% 6.8% 0.0% 0.0%
- More than 30 days past
due 0.0% 1.4% 16.5% 0.0% 8.5% 0.0% 0.0%
Stage 3, credit-impaired
financial
assets 0.0% 60.5% 45.0% 100.0% 57.9% 0.0% 27.0%
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Cover ratio 0.0% 3.4% 1.0% 0.0% 2.1% 0.1% 0.4%
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Fair value through profit
or
loss
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Performing 23,650 54,926 116 6 55,048 - -
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 20,516 32,758 115 3 32,876 - -
- Satisfactory 3,134 22,049 1 3 22,053 - -
- Higher risk - 119 - - 119 - -
--------- ---------------- ----------- --------- --------- ------------ -----------
Defaulted (CG13-14) - 43 - - 43 - -
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Gross balance (FVTPL)(2) 23,650 54,969 116 6 55,091 - -
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Net carrying value (incl.
FVTPL) 71,666 195,572 130,838 20,765 347,175
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
1 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $3,197 million under Customers and
of $728 million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $45,285 million under Customers
and of $20,350 million under Banks, held at fair value through
profit or loss
31.12.20
--------------------------- -----------------------------------------------------------------------------------------
Customers
--------- --------------------------------------------------- ------------ -----------
Corporate, Consumer,
Commercial Private Central
& Institutional & Business & other Customer Undrawn Financial
Banks Banking Banking items Total commitments guarantees
Amortised cost $million $million $million $million $million $million $million
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Stage 1 44,015 110,993 126,294 19,150 256,437 143,703 49,489
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong(3) 34,961 64,277 120,892 18,889 204,058 122,792 30,879
- Satisfactory(3) 9,054 46,716 5,402 261 52,379 20,911 18,610
--------- ---------------- ----------- --------- --------- ------------ -----------
Stage 2 349 20,004 2,657 - 22,661 9,698 3,573
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 95 2,756 1,522 - 4,278 3,537 386
- Satisfactory 233 15,105 665 - 15,770 5,522 2,399
- Higher risk 21 2,143 470 - 2,613 639 788
--------- ---------------- ----------- --------- --------- ------------ -----------
Of which (stage 2):
- Less than 30 days past
due - 202 663 - 865 - -
- More than 30 days past
due 29 148 480 - 628 - -
Stage 3, credit-impaired
financial
assets - 7,652 1,562 - 9,214 2 770
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Gross balance(1) 44,364 138,649 130,513 19,150 288,312 153,403 53,832
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Stage 1 (14) (95) (438) (1) (534) (39) (20)
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong(3) (7) (34) (328) - (362) (19) (13)
- Satisfactory(3) (7) (61) (110) (1) (172) (20) (7)
--------- ---------------- ----------- --------- --------- ------------ -----------
Stage 2 (3) (487) (251) - (738) (78) (36)
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong - (42) (100) - (142) (3) (3)
- Satisfactory (3) (291) (85) - (376) (44) (19)
- Higher risk - (154) (66) - (220) (31) (14)
--------- ---------------- ----------- --------- --------- ------------ -----------
Of which (stage 2):
- Less than 30 days past
due - (6) (85) - (91) - -
- More than 30 days past
due - (6) (66) - (72) - -
Stage 3, credit-impaired
financial
assets - (4,610) (731) - (5,341) - (194)
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Total credit impairment (17) (5,192) (1,420) (1) (6,613) (117) (250)
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Net carrying value 44,347 133,457 129,093 19,149 281,699
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Stage 1 0.0% 0.1% 0.3% 0.0% 0.2% 0.0% 0.0%
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 0.0% 0.1% 0.3% 0.0% 0.2% 0.0% 0.0%
- Satisfactory 0.1% 0.1% 2.0% 0.4% 0.3% 0.1% 0.0%
--------- ---------------- ----------- --------- --------- ------------ -----------
Stage 2 0.9% 2.4% 9.4% 0.0% 3.3% 0.8% 1.0%
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 0.0% 1.5% 6.6% 0.0% 3.3% 0.1% 0.8%
- Satisfactory 1.3% 1.9% 12.8% 0.0% 2.4% 0.8% 0.8%
- Higher risk 0.0% 7.2% 14.0% 0.0% 8.4% 4.9% 1.8%
--------- ---------------- ----------- --------- --------- ------------ -----------
Of which (stage 2):
- Less than 30 days past
due 0.0% 3.0% 12.8% 0.0% 10.5% 0.0% 0.0%
- More than 30 days past
due 0.0% 4.1% 13.8% 0.0% 11.5% 0.0% 0.0%
Stage 3, credit-impaired
financial
assets 0.0% 60.2% 46.8% 0.0% 58.0% 0.0% 25.2%
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Cover ratio 0.0% 3.7% 1.1% 0.0% 2.3% 0.1% 0.5%
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Fair value through profit
or
loss
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Performing 22,082 54,384 135 12 54,531 - -
--------- ---------------- ----------- --------- --------- ------------ -----------
- Strong 18,100 29,527 133 8 29,668 - -
- Satisfactory 3,982 24,775 2 4 24,781 - -
- Higher risk - 82 - - 82 - -
--------- ---------------- ----------- --------- --------- ------------ -----------
Defaulted (CG13-14) - 46 - - 46 - -
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Gross balance (FVTPL)(2) 22,082 54,430 135 12 54,577 - -
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
Net carrying value (incl.
FVTPL) 66,429 187,887 129,228 19,161 336,276
--------------------------- --------- ---------------- ----------- --------- --------- ------------ -----------
1 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $2,919 million under Customers and
of $1,247 million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $45,200 million under Customers
and of $18,205 million under Banks, held at fair value through
profit or loss
3 FY 2020 Consumer, Private & Business Banking Stage 1
Gross: Strong restated from $119,766 million to $120,892 million
and Satisfactory restated from $6,528 million to $5,402 million. FY
2020 Consumer, Private & Business Banking Stage 1 ECL: Strong
restated from $307 million to $328 million and Satisfactory
restated from $131 million to $110 million.
Credit impairment charge
1Q'21 1Q'20
-------------------------------------- ---------------------------------- ----------------------------------
Stage 1 & Stage 1 &
2 Stage 3 Total 2 Stage 3 Total
$million $million $million $million $million $million
-------------------------------------- ---------- ---------- ----------
Ongoing business portfolio
Corporate, Commercial & Institutional
Banking (27) (3) (30) 300 449 749
Consumer, Private & Business
Banking (10) 59 49 142 56 198
Central & Others 2 (1) 1 9 0 9
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Credit impairment charge (35) 55 20 451 505 956
Restructuring business portfolio
Others (1) (2) (3) 0 6 6
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Credit impairment charge (1) (2) (3) 0 6 6
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total credit impairment charge (36) 53 17 451 511 962
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
COVID-19 relief measures
Africa & Middle
Asia East Europe & Americas
--------------
Outstanding % of Outstanding % of Outstanding % of Outstanding % of
Segment $million portfolio(1) $million portfolio(1) $million portfolio(1) $million portfolio(1)
-------------- ----------- ----------- ------------ ----------- ------------ ----------- ------------
Credit card &
Personal
loans 206 1% 61 0% 145 8%
Mortgages &
Auto 914 1% 899 1% 15 1%
Business
Banking 168 1% 168 1%
-------------- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
Total
Consumer,
Private &
Business
Banking 1,288 1% 1,128 1% 160 3%
--------------
Corporate,
Commercial &
Institutional
Banking 866 658 195 13
-------------- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
Total at 31
March 2021 2,154 1% 1,786 355 13
-------------- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
1 Percentage of portfolio represents the outstanding amount as a
percentage of the gross loans and advances to banks and customers
by product and segment and total loans and advances to banks and
customers
Vulnerable sectors
Maximum Exposure
31.03.21
------------------ --------------------------------------------------------------------------------------------------
Maximum
on Balance
Sheet Net Total
Exposure Net Undrawn Financial Off On &
(net On Balance Commitments(net Guarantees(net Balance Off Balance
of credit Sheet of credit of credit Sheet Sheet
impairment) Collateral Exposure impairment) impairment) Exposure Net Exposure
Amortised Cost $million $million $million $million $million $million $million
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Industry:
Aviation(1) 4,273 1,923 2,350 1,363 494 1,857 4,207
Commodity Traders 9,662 196 9,466 1,537 5,015 6,552 16,018
Metals & Mining 4,151 432 3,719 3,066 837 3,903 7,622
Commercial Real
Estate 18,923 7,734 11,189 5,014 293 5,307 16,496
Hotels & Tourism 2,545 1,117 1,428 1,081 105 1,186 2,614
Oil & Gas 7,176 1,070 6,106 7,847 5,319 13,166 19,272
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total 46,730 12,472 34,258 19,908 12,063 31,971 66,229
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total Corporate,
Commercial
& Institutional
Banking 140,603 27,726 112,877 91,191 45,734 136,925 249,802
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total Consumer,
Private &
Business
Banking and other
segments 199,497 99,443 100,054 60,863 7,302 68,165 168,219
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total Group 340,100 127,169 212,931 152,054 53,036 205,090 418,021
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
31.12.20
------------------ --------------------------------------------------------------------------------------------------
Maximum
On Balance
Sheet Net Total
Exposure Net Undrawn Financial Off On &
(net On Balance Commitments(net Guarantees(net Balance Off Balance
of credit Sheet of credit of credit Sheet Sheet
impairment) Collateral Exposure impairment) impairment) Exposure Net Exposure
Amortised Cost $million $million $million $million $million $million $million
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Industry:
Aviation(1) 3,839 2,106 1,733 1,321 531 1,852 3,585
Commodity Traders 8,664 318 8,346 2,189 4,459 6,648 14,994
Metals & Mining 3,882 513 3,369 2,850 886 3,736 7,105
Commercial Real
Estate 19,090 8,004 11,086 5,283 313 5,596 16,682
Hotels & Tourism 2,557 1,110 1,447 1,185 110 1,295 2,742
Oil & Gas 7,199 1,032 6,167 8,332 5,587 13,919 20,086
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total 45,231 13,083 32,148 21,160 11,886 33,046 65,194
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total Corporate,
Commercial
& Institutional
Banking 133,457 27,561 105,896 92,001 46,725 138,726 244,622
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total Consumer,
Private &
Business
Banking and other
segments 192,589 103,886 88,703 61,285 6,857 68,142 156,845
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
Total Group 326,046 131,447 194,599 153,286 53,582 206,868 401,467
------------------ ------------ ---------- ----------- ---------------- --------------- --------- -------------
1 In addition to the aviation sector loan exposures, the Group
owns $3.5 billion (31 December 2020: $3.9 billion) of aircraft
under operating leases.
Loans and advances by stage
31.03.21
-------------- ------------------------------------------------------------------------------------------------------------------------------
Stage 1 Stage 2 Stage 3 Total
------------------------------ ------------------------------ ------------------------------ ------------------------------
Total Net Total Net Total Net Total Net
Gross Credit Carrying Gross Credit Carrying Gross Credit Carrying Gross Credit Carrying
Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount
Amortised Cost $million $million $million $million $million $million $million $million $million $million $million $million
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Industry:
Aviation 2,267 (1) 2,266 1,840 (12) 1,828 241 (62) 179 4,348 (75) 4,273
Commodity
Traders 9,255 (1) 9,254 266 (9) 257 810 (659) 151 10,331 (669) 9,662
Metals &
Mining 3,431 (2) 3,429 646 (25) 621 211 (110) 101 4,288 (137) 4,151
Commercial
Real
Estate 16,631 (15) 16,616 2,069 (24) 2,045 459 (197) 262 19,159 (236) 18,923
Hotels &
Tourism 1,221 (3) 1,218 1,273 (53) 1,220 155 (48) 107 2,649 (104) 2,545
Oil & Gas 5,871 (7) 5,864 1,215 (68) 1,147 340 (175) 165 7,426 (250) 7,176
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total 38,676 (29) 38,647 7,309 (191) 7,118 2,216 (1,251) 965 48,201 (1,471) 46,730
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total
Corporate,
Commercial &
Institutional
Banking 121,259 (79) 121,180 17,059 (483) 16,576 7,212 (4,365) 2,847 145,530 (4,927) 140,603
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total
Consumer,
Private &
Business
Banking and
other
segments 196,916 (420) 196,496 2,375 (201) 2,174 1,506 (679) 827 200,797 (1,300) 199,497
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total Group 318,175 (499) 317,676 19,434 (684) 18,750 8,718 (5,044) 3,674 346,327 (6,227) 340,100
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
31.12.20
-------------- ------------------------------------------------------------------------------------------------------------------------------
Stage 1 Stage 2 Stage 3 Total
------------------------------ ------------------------------ ------------------------------ ------------------------------
Total Net Total Net Total Net Total Net
Gross Credit Carrying Gross Credit Carrying Gross Credit Carrying Gross Credit Carrying
Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount
Amortised Cost $million $million $million $million $million $million $million $million $million $million $million $million
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Industry:
Aviation 2,073 (1) 2,072 1,613 (26) 1,587 258 (78) 180 3,944 (105) 3,839
Commodity
Traders 8,067 (3) 8,064 473 (12) 461 799 (660) 139 9,339 (675) 8,664
Metals &
Mining 3,128 (3) 3,125 677 (18) 659 210 (112) 98 4,015 (133) 3,882
Commercial
Real
Estate 15,847 (13) 15,834 3,068 (34) 3,034 408 (186) 222 19,323 (233) 19,090
Hotels &
Tourism 1,318 (2) 1,316 1,168 (18) 1,150 138 (47) 91 2,624 (67) 2,557
Oil & Gas 5,650 (7) 5,643 1,548 (69) 1,479 276 (199) 77 7,474 (275) 7,199
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total 36,083 (29) 36,054 8,547 (177) 8,370 2,089 (1,282) 807 46,719 (1,488) 45,231
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total
Corporate,
Commercial &
Institutional
Banking 110,993 (95) 110,898 20,004 (487) 19,517 7,652 (4,610) 3,042 138,649 (5,192) 133,457
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total
Consumer,
Private &
Business
Banking and
other
segments 189,459 (453) 189,006 3,006 (254) 2,752 1,562 (731) 831 194,027 (1,438) 192,589
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total Group 300,452 (548) 299,904 23,010 (741) 22,269 9,214 (5,341) 3,873 332,676 (6,630) 326,046
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Capital review
Capital ratios
31.03.21 31.12.20 Change(4) 31.03.20 Change(4)
--------------- -------- -------- --------- -------- ---------
CET1 14.0% 14.4% (0.4) 13.4% 0.6
Tier 1 capital 16.3% 16.5% (0.2) 15.1% 1.2
Total capital 21.2% 21.2% - 19.6% 1.6
--------------- -------- -------- --------- -------- ---------
CRD Capital base(1)
31.03.21 31.12.20 Change(4) 31.03.20 Change(4)
$million $million % $million %
------------------------------------------------ ---------- ---------- --------- ---------- ---------
CET1 instruments and reserves
Capital instruments and the related
share premium accounts 5,545 5,564 - 5,564 -
---------- ---------- --------- ---------- ---------
Of which: share premium accounts 3,989 3,989 - 3,989 -
---------- ---------- --------- ---------- ---------
Retained earnings(2) 26,062 25,723 1 26,045 -
Accumulated other comprehensive income
(and other reserves) 12,175 12,688 (4) 10,781 13
Non-controlling interests (amount allowed
in consolidated CET1) 193 180 7 483 (60)
Independently reviewed interim and year-end
profits 1,091 718 52 510 114
Foreseeable dividends (573) (481) 19 (283) 102
------------------------------------------------ ---------- ---------- --------- ---------- ---------
CET1 capital before regulatory adjustments 44,493 44,392 - 43,100 3
------------------------------------------------ ---------- ---------- --------- ---------- ---------
CET1 regulatory adjustments
Additional value adjustments (prudential
valuation adjustments) (641) (490) 31 (604) 6
Intangible assets (net of related tax
liability)(3) (4,041) (4,274) (5) (4,899) (18)
Deferred tax assets that rely on future
profitability (excludes those arising
from temporary differences) (146) (138) 6 (133) 10
Fair value reserves related to net losses
on cash flow hedges 7 52 (87) 130 (95)
Deduction of amounts resulting from
the calculation of excess expected loss (819) (701) 17 (573) 43
Net gains on liabilities at fair value
resulting from changes in own credit
risk 59 52 13 (150) (139)
Defined-benefit pension fund assets (54) (40) 35 (55) (2)
Fair value gains arising from the institution's
own credit risk related to derivative
liabilities (48) (48) - (298) (84)
Exposure amounts which could qualify
for risk weighting of 1250% (99) (26) 281 (51) 94
------------------------------------------------ ---------- ---------- --------- ---------- ---------
Total regulatory adjustments to CET1 (5,782) (5,613) 3 (6,633) (13)
------------------------------------------------ ---------- ---------- --------- ---------- ---------
CET1 capital 38,711 38,779 - 36,467 6
------------------------------------------------ ---------- ---------- --------- ---------- ---------
Additional Tier 1 capital (AT1) instruments 6,313 5,632 12 4,640 36
------------------------------------------------ ---------- ---------- --------- ---------- ---------
AT1 regulatory adjustments (20) (20) - (20) -
------------------------------------------------ ---------- ---------- --------- ---------- ---------
Tier 1 capital 45,004 44,391 1 41,087 10
------------------------------------------------ ---------- ---------- --------- ---------- ---------
Tier 2 capital instruments 13,557 12,687 7 12,401 9
Tier 2 regulatory adjustments (30) (30) - (30) -
---------- ---------- --------- ---------- ---------
Tier 2 capital 13,527 12,657 7 12,371 9
------------------------------------------------ ---------- ---------- --------- ---------- ---------
Total capital 58,531 57,048 3 53,458 9
------------------------------------------------ ---------- ---------- --------- ---------- ---------
Total risk-weighted assets (unaudited) 276,670 268,834 3 272,653 1
------------------------------------------------ ---------- ---------- --------- ---------- ---------
1 CRD capital is prepared on the regulatory scope of
consolidation
2 Retained earnings includes IFRS9 capital relief (transitional)
of $294 million, including dynamic relief of $83 million
3 Deduction for intangible assets includes software deduction
relief of $909 million as the CRR 'Quick Fix' measures
4 Change is the percentage point difference between the two
periods, rather than percentage change
5 Variance is increase/(decrease) comparing current reporting
period to prior reporting periods
Movement in total capital
3 months Year ended
ended 31.03.21 31.12.20
$million $million
---------------------------------------------------------------- --------------- ----------
CET1 at 1 January 38,779 36,513
Ordinary shares issued in the period and share premium - -
Share buy-back (255) (242)
Profit for the period 1,091 718
Foreseeable dividends deducted from CET1 (573) (481)
Difference between dividends paid and foreseeable dividends 416 476
Movement in goodwill and other intangible assets 233 1,044
Foreign currency translation differences (295) 700
Non-controlling interests 13 (543)
Movement in eligible other comprehensive income (235) 324
Deferred tax assets that rely on future profitability (8) (9)
Decrease/(increase) in excess expected loss (118) 121
Additional value adjustments (prudential valuation adjustment) (151) 125
IFRS 9 transitional impact on regulatory reserves including day
one (100) 35
Exposure amounts which could qualify for risk weighting (73) 36
Fair value gains arising from the institution's own credit risk
related to derivative liabilities - (10)
Other (13) (28)
---------------------------------------------------------------- --------------- ----------
CET1 at 31 March/31 December 38,711 38,779
---------------------------------------------------------------- --------------- ----------
AT1 at 1 January 5,612 7,164
Net issuances (redemptions) 1,239 (995)
Foreign currency translation difference 2 8
Excess on AT1 grandfathered limit (ineligible) (560) (565)
---------------------------------------------------------------- --------------- ----------
AT1 at 31 March/31 December 6,293 5,612
---------------------------------------------------------------- --------------- ----------
Tier 2 capital at 1 January 12,657 12,288
Regulatory amortisation (242) (463)
Net issuances (redemptions) 645 (69)
Foreign currency translation difference (101) 257
Tier 2 ineligible minority interest 12 82
Recognition of ineligible AT1 560 565
Other (4) (3)
---------------------------------------------------------------- --------------- ----------
Tier 2 capital at 31 March/31 December 13,527 12,657
---------------------------------------------------------------- --------------- ----------
Total capital at 31 March/31 December 58,531 57,048
---------------------------------------------------------------- --------------- ----------
Risk-weighted assets by business
31.03.21
---------------------------------------------- -------------------------------------------------
Operational
Credit risk risk Market risk Total risk
$million $million $million $million
---------------------------------------------- ----------- ----------- ----------- ----------
Corporate, Commercial & Institutional Banking 130,865 16,671 22,640 170,176
Consumer, Private & Business Banking 46,183 8,427 - 54,610
Central & other items 49,741 2,018 125 51,884
---------------------------------------------- ----------- ----------- ----------- ----------
Total risk-weighted assets 226,789 27,116 22,765 276,670
---------------------------------------------- ----------- ----------- ----------- ----------
31.12.20
---------------------------------------------- -------------------------------------------------
Operational
Credit risk risk Market risk Total risk
$million $million $million $million
---------------------------------------------- ----------- ----------- ----------- ----------
Corporate, Commercial & Institutional Banking 127,663 15,963 21,465 165,091
Consumer, Private & Business Banking 44,755 8,338 - 53,093
Central & other items 48,023 2,499 128 50,650
---------------------------------------------- ----------- ----------- ----------- ----------
Total risk-weighted assets 220,441 26,800 21,593 268,834
---------------------------------------------- ----------- ----------- ----------- ----------
31.03.20
---------------------------------------------- -------------------------------------------------
Operational
Credit risk risk Market risk Total risk
$million $million $million $million
---------------------------------------------- ----------- ----------- ----------- ----------
Corporate, Commercial & Institutional Banking 131,366 15,963 21,728 169,057
Consumer, Private & Business Banking 42,193 8,338 - 50,531
Central & other items 49,444 3,502 119 53,065
---------------------------------------------- ----------- ----------- ----------- ----------
Total risk-weighted assets 223,003 27,803 21,847 272,653
---------------------------------------------- ----------- ----------- ----------- ----------
Risk-weighted assets by geographic region
31.03.21 31.12.20 Change(1) 31.03.20 Change(1)
$million $million % $million %
--------------------------- ---------- ---------- --------- ---------- ---------
ASIA 178,541 174,283 2 177,754 -
Africa & Middle East 50,640 51,149 (1) 51,414 (2)
Europe & Americas 49,848 45,758 9 45,944 8
Central & other items (2,359) (2,356) - (2,459) (4)
--------------------------- ---------- ---------- --------- ---------- ---------
Total risk-weighted assets 276,670 268,834 3 272,653 1
--------------------------- ---------- ---------- --------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods
Movement in risk-weighted assets
Credit risk
------------------------------ --------------------------------------------------------------------------------------
Commercial, Consumer,
Corporate Private Central
& Institutional & Business & other Operational Market Total
Banking Banking items Total risk risk risk
$million $million $million $million $million $million $million
------------------------------ ---------------- ----------- --------- --------- ----------- --------- ---------
At 31 December 2019 123,667 42,819 49,178 215,664 27,620 20,806 264,090
------------------------------ ---------------- ----------- --------- --------- ----------- --------- ---------
At 01 January 2020 (1) 123,611 42,875 49,178 215,664 27,620 20,806 264,090
Assets (decline)/growth (9,743) 520 3,711 (5,512) - - (5,512)
Asset quality 12,190 323 2,409 14,922 - - 14,922
Risk-weighted assets
efficiencies (71) - - (71) - - (71)
Model, methodology and policy
changes 247 134 661 1,042 - (1,500) (458)
Disposals - - (7,859) (7,859) (1,003) (159) (9,021)
Foreign currency translation 1,429 903 (77) 2,255 - - 2,255
Other non-credit risk
movements - - - - 183 2,446 2,629
------------------------------ ---------------- ----------- --------- --------- ----------- --------- ---------
At 31 December 2020 127,663 44,755 48,023 220,441 26,800 21,593 268,834
------------------------------ ---------------- ----------- --------- --------- ----------- --------- ---------
Assets (decline)/growth 3,573 2,031 2,413 8,017 - - 8,017
Asset quality 502 43 22 567 - - 567
Risk-weighted assets
efficiencies - - (657) (657) - - (657)
Model, methodology and policy
changes - - - - - - -
Disposals - - - - - - -
Foreign currency translation (873) (646) (292) (1,811) - - (1,811)
Other non-credit risk
movements - - 232 232 316 1,172 1,720
------------------------------ ---------------- ----------- --------- --------- ----------- --------- ---------
At 31 March 2021 130,865 46,183 49,741 226,789 27,116 22,765 276,670
------------------------------ ---------------- ----------- --------- --------- ----------- --------- ---------
1 Following a reorganisation of certain clients, there has been
a reclassification of balances across client segments. 1 January
2020 balances have been restated.
UK leverage ratio
31.03.21 31.12.20 Change(3) 31.03.20 Change(3)
$million $million % $million %
------------------------------------------ ---------- ---------- --------- ---------- ---------
Tier 1 capital (transitional) 45,004 44,391 1 41,087 10
Additional Tier 1 capital subject to
phase out (557) (1,114) (50) (1,114) (50)
------------------------------------------ ---------- ---------- --------- ---------- ---------
Tier 1 capital (end point)(1) 44,447 43,277 3 39,973 11
------------------------------------------ ---------- ---------- --------- ---------- ---------
Derivative financial instruments 59,872 69,467 (14) 66,757 (10)
Derivative cash collateral 9,860 11,759 (16) 13,070 (25)
Securities financing transactions (SFTs) 69,560 67,570 3 70,269 (1)
Loans and advances and other assets 665,611 640,254 4 614,820 8
------------------------------------------ ---------- ---------- --------- ---------- ---------
Total on-balance sheet assets 804,903 789,050 2 764,916 5
Regulatory consolidation adjustments(2) (65,121) (60,059) 8 (42,178) 54
Derivatives adjustments
---------- ---------- --------- ---------- ---------
Derivatives netting (38,602) (44,257) (13) (39,400) (2)
Adjustments to cash collateral (18,260) (21,278) (14) (23,381) (22)
Net written credit protection 1,999 1,284 56 1,618 24
Potential future exposure on derivatives 47,527 42,410 12 34,961 36
---------- ---------- --------- ---------- ---------
Total derivatives adjustments (7,336) (21,841) (66) (26,202) (72)
Counterparty risk leverage exposure
measure for SFTs 9,505 4,969 91 10,380 (8)
Off-balance sheet items 129,403 128,167 1 122,763 5
Regulatory deductions from Tier 1 capital (5,710) (5,521) 3 (6,184) (8)
------------------------------------------ ---------- ---------- --------- ---------- ---------
UK leverage exposure (end point) 865,644 834,765 4 823,495 5
UK leverage ratio (end point)(4) 5.1% 5.2% (0.1) 4.9% 0.2
------------------------------------------ ---------- ---------- --------- ---------- ---------
UK leverage exposure quarterly average 864,008 837,147 3 829,542 4
UK leverage ratio quarterly average 5.1% 5.2% (0.1) 4.9% 0.2
------------------------------------------ ---------- ---------- --------- ---------- ---------
Countercyclical leverage ratio buffer 0.1% 0.0% 0.1 0.1% -
G-SII additional leverage ratio buffer 0.4% 0.4% - 0.4% -
------------------------------------------ ---------- ---------- --------- ---------- ---------
1 Tier 1 Capital (end point) is adjusted only for Grandfathered Additional Tier 1 instruments
2 Includes adjustment for qualifying central bank claims
3 Variance is increase/(decrease) comparing current reporting period to prior reporting periods
4 Change is the percentage point difference two periods, rather
than percentage change
Financial statements
Condensed consolidated interim income statement
For the three months ended 31 March 2021
3 months 3 months
ended 31.03.21 ended 31.03.20
$million $million
------------------------------------------------------------- --------------- ---------------
Interest income 2,532 3,746
Interest expense (874) (1,907)
------------------------------------------------------------- --------------- ---------------
Net interest income 1,658 1,839
Fees and commission income 1,181 1,010
Fees and commission expense (168) (148)
Net fee and commission income 1,013 862
Net trading income 999 1,138
Other operating income 269 496
------------------------------------------------------------- --------------- ---------------
Operating income 3,939 4,335
--------------- ---------------
Staff costs (1,826) (1,633)
Premises costs (89) (90)
General administrative expenses (320) (347)
Depreciation and amortisation (293) (298)
--------------- ---------------
Operating expenses (2,528) (2,368)
------------------------------------------------------------- --------------- ---------------
Operating profit before impairment losses and taxation 1,411 1,967
Credit impairment (17) (962)
Goodwill, property, plant and equipment and other impairment (28) (166)
Profit from associates and joint ventures 47 47
------------------------------------------------------------- --------------- ---------------
Profit before taxation 1,413 886
Taxation (314) (369)
------------------------------------------------------------- --------------- ---------------
Profit for the period 1,099 517
------------------------------------------------------------- --------------- ---------------
Profit attributable to:
Non-controlling interests 7 7
Parent company shareholders 1,092 510
------------------------------------------------------------- --------------- ---------------
Profit for the period 1,099 517
------------------------------------------------------------- --------------- ---------------
cents cents
------------------------------------------------------------- --------------- ---------------
Earnings per share:
Basic earnings per ordinary share 32.6 15.0
Diluted earnings per ordinary share 32.1 14.8
------------------------------------------------------------- --------------- ---------------
Condensed consolidated interim statement of comprehensive
income
For the three months ended 31 March 2021
3 months 3 months
ended 31.03.21 ended 31.03.20
$million $million
---------------------------------------------------------------------- --------------- ---------------
Profit for the period 1,099 517
Other comprehensive (loss)/income
Items that will not be reclassified to income statement: 177 253
--------------- ---------------
Own credit (losses)/gains on financial liabilities designated at
fair value through profit or loss (9) 175
Equity instruments at fair value through other comprehensive income 117 27
Actuarial gains on retirement benefit obligations 79 83
Taxation relating to components of other comprehensive income (10) (32)
--------------- ---------------
Items that may be reclassified subsequently to income statement: (632) (1,106)
Exchange differences on translation of foreign operations:
--------------- ---------------
Net losses taken to equity (414) (1,109)
Net gains on net investment hedges 119 170
Share of other loss from associates and joint ventures (4) -
Debt instruments at fair value through other comprehensive income:
Net valuation (losses)/gains taken to equity (303) 244
Reclassified to income statement (126) (326)
Net impact of expected credit losses 2 9
Cash flow hedges:
Net gains/(losses) taken to equity 37 (104)
Reclassified to income statement 15 4
Taxation relating to components of other comprehensive income 42 6
--------------- ---------------
Other comprehensive loss for the year, net of taxation (455) (853)
---------------------------------------------------------------------- --------------- ---------------
Total comprehensive income/(loss) for the period 644 (336)
---------------------------------------------------------------------- --------------- ---------------
Total comprehensive income/(loss) attributable to:
Non-controlling interests 9 (5)
Parent company shareholders 635 (331)
---------------------------------------------------------------------- --------------- ---------------
Total comprehensive income/(loss) for the period 644 (336)
---------------------------------------------------------------------- --------------- ---------------
Condensed consolidated interim balance sheet
As at 31 March 2021
31.03.21 31.12.20
$million $million
---------------------------------------------------------------- ---------- ----------
Assets
Cash and balances at central banks 72,215 66,712
Financial assets held at fair value through profit or loss 105,852 106,787
Derivative financial instruments 59,872 69,467
Loans and advances to banks 48,016 44,347
Loans and advances to customers 292,084 281,699
Investment securities 157,314 153,315
Other assets 51,890 48,688
Current tax assets 562 808
Prepayments and accrued income 2,027 2,122
Interests in associates and joint ventures 2,205 2,162
Goodwill and intangible assets 5,072 5,063
Property, plant and equipment 6,126 6,515
Deferred tax assets 895 919
Assets classified as held for sale 773 446
---------------------------------------------------------------- ---------- ----------
Total assets 804,903 789,050
---------------------------------------------------------------- ---------- ----------
Liabilities
Deposits by banks 30,521 30,255
Customer accounts 441,684 439,339
Repurchase agreements and other similar secured borrowing 6,107 1,903
Financial liabilities held at fair value through profit or loss 74,782 68,373
Derivative financial instruments 59,351 71,533
Debt securities in issue 60,973 55,550
Other liabilities 56,628 47,904
Current tax liabilities 538 660
Accruals and deferred income 3,702 4,546
Subordinated liabilities and other borrowed funds 16,924 16,654
Deferred tax liabilities 613 695
Provisions for liabilities and charges 431 466
Retirement benefit obligations 374 443
---------------------------------------------------------------- ---------- ----------
Total liabilities 752,628 738,321
---------------------------------------------------------------- ---------- ----------
Equity
Share capital and share premium account 7,039 7,058
Other reserves 12,175 12,688
Retained earnings 26,952 26,140
---------------------------------------------------------------- ---------- ----------
Total parent company shareholders' equity 46,166 45,886
Other equity instruments 5,757 4,518
---------------------------------------------------------------- ---------- ----------
Total equity excluding non-controlling interests 51,923 50,404
Non-controlling interests 352 325
---------------------------------------------------------------- ---------- ----------
Total equity 52,275 50,729
---------------------------------------------------------------- ---------- ----------
Total equity and liabilities 804,903 789,050
---------------------------------------------------------------- ---------- ----------
Condensed consolidated statement of changes in equity
For the three months ended 31 March 2021
Fair Fair
Ordinary Preference value value
share share through through
capital capital other other
and and Capital Own compre-hensive compre-hensive Cash Parent
share share and credit income income flow company Other
premium premium merger adjustment reserve reserve hedge Translation Retained share-holders' equity Non-controlling
account account reserves(1) reserve - debt - equity reserve reserve earnings equity instru-ments interests Total
$million $million $million $million $million $million $million $million $million $million $million $million $million
-------------- ---------- ---------- ----------- ---------- -------------- -------------- ---------- ----------- ---------- -------------- ------------ --------------- ----------
As at 1
January
2020 5,584 1,494 17,187 2 197 150 (59) (5,792) 26,072 44,835 5,513 313 50,661
Profit for the
period - - - - - - - - 724 724 - 27 751
Other
comprehensive
(loss)/income - - - (54) 332 (2) 7 631 11(2) 925 - (12) 913
Distributions - - - - - - - - - - - (20) (20)
Other equity
instruments
issued, net
of expenses - - - - - - - - - - 992 - 992
Redemption of
other equity
instruments - - - - - - - - (13) (13) (1,987) - (2,000)
Treasury
shares
purchased - - - - - - - - (98) (98) - - (98)
Treasury
shares
issued - - - - - - - - 8 8 - - 8
Share option
expense, net
of taxation - - - - - - - - 133 133 - - 133
Dividends on
preference
shares
and AT1
securities - - - - - - - - (395) (395) - - (395)
Share
buy-back(3) (20) - 20 - - - - - (242) (242) - - (242)
Other
movements - - - - - - - 69 (60)(4) 9 - 17(5) 26
-------------- ---------- ---------- ----------- ---------- -------------- -------------- ---------- ----------- ---------- -------------- ------------ --------------- ----------
As at 31
December
2020 5,564 1,494 17,207 (52) 529 148 (52) (5,092) 26,140 45,886 4,518 325 50,729
-------------- ---------- ---------- ----------- ---------- -------------- -------------- ---------- ----------- ---------- -------------- ------------ --------------- ----------
Profit for the
period - - - - - - - - 1,092 1,092 - 7 1,099
Other
comprehensive
(loss)/income - - - (7) (380) 105 45 (295) 75(2) (457) - 2 (455)
Distributions - - - - - - - - - - - (2) (2)
Other equity
instruments
issued, net
of expenses - - - - - - - - - - 1,239 - 1,239
Treasury
shares
purchased - - - - - - - - (85) (85) - - (85)
Share option
expense, net
of taxation - - - - - - - - 50 50 - - 50
Dividends on
preference
shares
and AT1
securities - - - - - - - - (65) (65) - - (65)
Share
buy-back(6) (19) - 19 - - - - - (255) (255) - - (255)
Other
movements - - - - - - - - - - - 20(7) 20
-------------- ---------- ---------- ----------- ---------- -------------- -------------- ---------- ----------- ---------- -------------- ------------ --------------- ----------
As at 31 March
2021 5,545 1,494 17,226 (59) 149 253 (7) (5,387) 26,952 46,166 5,757 352 52,275
-------------- ---------- ---------- ----------- ---------- -------------- -------------- ---------- ----------- ---------- -------------- ------------ --------------- ----------
1 Includes capital reserve of $5 million, capital redemption
reserve of $110 million and merger reserve of $17,111 million
2 Comprises actuarial loss, net of taxation, and share from
associates and joint ventures $75 million ($11 million for the year
ended 31 December 2020)
3 On 28 February 2020, the Group announced the buy-back
programme for a share buy-back of its ordinary shares of $0.50
each. Nominal value of share purchases was $20 million, and the
total consideration paid was $242 million. The total number of
shares purchased was 40,029,585 representing 1.25 per cent of the
ordinary shares in issue. The nominal value of the shares was
transferred from the share capital to the capital redemption
reserve account. On 31 March 2020, the Group announced that, in
response to a request from the Prudential Regulation Authority and
as a consequence of the unprecedented challenges facing the world
due to the COVID-19 pandemic, its board had decided after careful
consideration to withdraw the recommendation to pay a final
dividend for 2019 of 20 cents per ordinary share, and to suspend
the buy-back programme
4 Includes $69 million related to prior period adjustments to
reclass FX movements from translation reserve to retained earnings
($45 million related to FX movements of the hedging instruments for
net investment hedges and $24 million related to FX movements for
monetary items, which were considered structural positions), and $9
million increase related to revenue reserves of PT Bank Permata
Tbk
5 Movement related to non-controlling interest from Mox Bank Limited
6 On 25 February 2021, the Group announced the buy-back
programme for a share buy-back of its ordinary shares of $0.50
each. Nominal value of share purchases was $19 million, and the
total consideration paid was $255 million (including $1 million of
fees) . The total number of shares purchased was 37,148,399
representing 1.18 per cent of the ordinary shares in issue. The
nominal value of the shares was transferred from the share capital
to the capital redemption reserve account.
7 Movement related to non-controlling interest from Mox Bank Limited
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 2021. 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
significant accounting policies are described in the Annual Report
2020, which have been prepared in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006 and International Financial Reporting Standards
adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in
the European Union (EU). The Group's Annual Report 2021 will be
prepared in accordance with United Kingdom (UK) adopted
international accounting standards.
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 international
accounting standards. The interim financial information has been
prepared in accordance with the recognition and measurement
principles, but not the disclosure requirements under UK-adopted
international accounting standards.
The information in this document does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2020, which
contained an unqualified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) have been delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
Going concern
The Directors made an assessment of the Group's ability to
continue as a going concern, including the impact of COVID-19, and
confirm they are satisfied that the Group has adequate resources to
continue in business for a period of twelve months from the date of
approval of the interim financial information. For this reason, the
Group continues to adopt the going concern basis of accounting for
preparing the interim financial information.
Other supplementary financial information
Average balance sheets and yields
Average assets
3 months ended 31.03.21
--------------------------------------------- -------------------------------------------------------------------
Average Gross yield
Average interest interest
non-interest earning Interest earning Gross yield
earning balance balance income balance total balance
$million $million $million % %
--------------------------------------------- ---------------- --------- --------- ----------- --------------
Cash and balances at central banks 21,459 53,521 19 0.14 0.10
Gross loans and advances to banks 23,919 52,248 148 1.15 0.79
Gross loans and advances to customers 50,958 299,535 1,845 2.50 2.13
Impairment provisions against loans
and advances to banks and customers - (6,654) - - -
Investment securities 31,704 157,681 520 1.34 1.11
Property, plant and equipment and intangible
assets 9,120 - - - -
Prepayments, accrued income and other
assets 117,035 - - - -
Investment associates and joint ventures 2,213 - - - -
--------------------------------------------- ---------------- --------- --------- ----------- --------------
Total average assets 256,408 556,331 2,532 1.85 1.26
--------------------------------------------- ---------------- --------- --------- ----------- --------------
3 months ended 31.12.20
--------------------------------------------- -------------------------------------------------------------------
Average Gross yield
Average interest interest
non-interest earning Interest earning Gross yield
earning balance balance income balance total balance
$million $million $million % %
--------------------------------------------- ---------------- --------- --------- ----------- --------------
Cash and balances at central banks 21,562 48,642 20 0.16 0.11
Gross loans and advances to banks 26,085 52,334 155 1.18 0.79
Gross loans and advances to customers 53,758 297,520 1,895 2.53 2.15
Impairment provisions against loans
and advances to banks and customers - (7,077) - - -
Investment securities 29,915 147,218 618 1.67 1.39
Property, plant and equipment and intangible
assets 8,453 - - - -
Prepayments, accrued income and other
assets 123,843 - - - -
Investment associates and joint ventures 2,134 - - - -
--------------------------------------------- ---------------- --------- --------- ----------- --------------
Total average assets 265,750 538,637 2,688 1.99 1.33
--------------------------------------------- ---------------- --------- --------- ----------- --------------
3 months ended 31.03.20
--------------------------------------------- -------------------------------------------------------------------
Average Gross yield
Average interest interest
non-interest earning Interest earning Gross yield
earning balance balance income balance total balance
$million $million $million % %
--------------------------------------------- ---------------- --------- --------- ----------- --------------
Cash and balances at central banks 16,576 31,795 53 0.67 0.44
Gross loans and advances to banks 28,389 57,106 321 2.26 1.51
Gross loans and advances to customers 50,852 284,841 2,510 3.54 3.01
Impairment provisions against loans
and advances to banks and customers - (5,692) - - -
Investment securities 29,007 142,622 862 2.43 2.02
Property, plant and equipment and intangible
assets 9,895 - - - -
Prepayments, accrued income and other
assets 103,766 - - - -
Investment associates and joint ventures 2,228 - - - -
--------------------------------------------- ---------------- --------- --------- ----------- --------------
Total average assets 240,713 510,672 3,746 2.95 2.01
--------------------------------------------- ---------------- --------- --------- ----------- --------------
Average liabilities
3 months ended 31.03.21
-------------------------------------------- -----------------------------------------------------------------
Average Rate paid
Average interest interest
non-interest bearing Interest bearing Rate paid
bearing balance balance expense balance total balance
$million $million $million % %
-------------------------------------------- ---------------- --------- --------- --------- --------------
Deposits by banks 16,816 31,562 27 0.35 0.23
Customer accounts:
Current accounts and savings deposits 48,825 252,807 186 0.30 0.25
Time and other deposits 53,391 148,789 375 1.02 0.75
Debt securities in issue 5,967 59,388 151 1.03 0.94
Accruals, deferred income and other
liabilities 122,026 1,081 13 4.88 0.04
Subordinated liabilities and other borrowed
funds - 15,998 122 3.09 3.09
Non-controlling interests 338 - - - -
Shareholders' funds 51,163 - - - -
-------------------------------------------- ---------------- --------- --------- --------- --------------
298,526 509,625 874 0.70 0.44
-------------------------------------------- ---------------- --------- --------- --------- --------------
Adjustment for Financial Markets funding
costs (35)
-------------------------------------------- ---------------- --------- --------- --------- --------------
Financial guarantee fees on interest
earning assets 23
-------------------------------------------- ---------------- --------- --------- --------- --------------
Total average liabilities and shareholders'
funds 298,526 509,625 862 0.69 0.43
-------------------------------------------- ---------------- --------- --------- --------- --------------
3 months ended 31.12.20
-------------------------------------------- -----------------------------------------------------------------
Average Rate paid
Average interest interest
non-interest bearing Interest bearing Rate paid
bearing balance balance expense balance total balance
$million $million $million % %
-------------------------------------------- ---------------- --------- --------- --------- --------------
Deposits by banks 16,303 30,073 (34) (0.45) (0.29)
Customer accounts:
Current accounts and savings deposits 48,512 247,796 145 0.23 0.19
Time and other deposits 58,905 143,801 503 1.39 0.99
Debt securities in issue 6,287 52,087 166 1.27 1.13
Accruals, deferred income and other
liabilities 131,307 1,065 14 5.23 0.04
Subordinated liabilities and other borrowed
funds - 15,956 139 3.47 3.47
Non-controlling interests 349 - - - -
Shareholders' funds 50,244 - - - -
-------------------------------------------- ---------------- --------- --------- --------- --------------
311,908 490,777 933 0.76 0.46
-------------------------------------------- ---------------- --------- --------- --------- --------------
Adjustment for Financial Markets funding
costs (25)
-------------------------------------------- ---------------- --------- --------- --------- --------------
Financial guarantee fees on interest
earning assets 104
-------------------------------------------- ---------------- --------- --------- --------- --------------
Total average liabilities and shareholders'
funds 311,908 490,777 1,012 0.82 0.50
-------------------------------------------- ---------------- --------- --------- --------- --------------
3 months ended 31.03.20
-------------------------------------------- -----------------------------------------------------------------
Average Rate paid
Average interest interest
non-interest bearing Interest bearing Rate paid
bearing balance balance expense balance total balance
$million $million $million % %
-------------------------------------------- ---------------- --------- --------- --------- --------------
Deposits by banks 18,354 27,517 149 2.18 1.31
Customer accounts:
Current accounts and savings deposits 40,220 204,412 479 0.94 0.79
Time and other deposits 58,635 161,324 854 2.13 1.56
Debt securities in issue 8,275 54,010 245 1.82 1.58
Accruals, deferred income and other
liabilities 108,023 1,246 - 0.00 0.00
Subordinated liabilities and other borrowed
funds - 16,040 180 4.51 4.51
Non-controlling interests 310 - - - -
Shareholders' funds 50,023 - - - -
-------------------------------------------- ---------------- --------- --------- --------- --------------
283,840 464,549 1,907 1.65 1.02
-------------------------------------------- ---------------- --------- --------- --------- --------------
Adjustment for Financial Markets funding
costs (92)
-------------------------------------------- ---------------- --------- --------- --------- --------------
Financial guarantee fees on interest
earning assets -
-------------------------------------------- ---------------- --------- --------- --------- --------------
Total average liabilities and shareholders'
funds 283,840 464,549 1,815 1.57 0.98
-------------------------------------------- ---------------- --------- --------- --------- --------------
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:
Gregg Powell, Head of Investor Relations
+852 2820 3050
LSE Stock code: STAN.LN
HKSE Stock code: 02888
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END
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