TIDMSTAN
RNS Number : 1155E
Standard Chartered PLC
26 October 2022
Standard Chartered PLC
3Q'22 Results
26 October 2022
Registered in England under company No. 966425
Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK
Table of Contents
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 12
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Underlying versus statutory results reconciliations 27
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Risk review 31
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Capital review 36
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Financial statements 41
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Other supplementary information 46
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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: LSE
STAN.LN and HKSE 02888.
Standard Chartered PLC - third quarter 2022 Results
All figures are presented on an underlying basis and comparisons
are made to 2021 on a reported currency basis, unless otherwise
stated. A reconciliation of restructuring and other items excluded
from underlying results is set out on pages 27-30.
Bill Winters, Group Chief Executive, said:
"We have posted a strong set of results in the third quarter,
with income up 22 per cent on a normalised basis and profit before
tax up 35 per cent year on year. We also continue to make
significant progress against the five strategic actions outlined in
February, including the completion of the $500m share buy-back
announced at the 2Q'22 results, taking total shareholder
distributions announced this year to $1.4bn. We remain confident in
the delivery of our 2024 financial targets"
Update on strategic actions
-- CCIB: drive improved returns: Income RoRWA of 6.3%
year-to-date (YTD), up 140bps on FY'21; $10.5bn of RWA optimisation
initiatives delivered so far this year
-- CPBB: transform profitability: Cost-to-income ratio of 69%
YTD, down 4%pts from FY'21; $173m of gross expense savings
delivered YTD; well on track to deliver $200m target in 2022
-- Seize China opportunity: China YTD on-shore income up 11% YoY
at constant currency (ccy); off-shore income up 16% YoY
-- Cost discipline to create operational leverage: $330m of
total gross structural cost savings delivered YTD
-- Substantial shareholder distributions: $1.4bn of total
shareholder distributions announced so far this year
Other highlights
-- Ventures: Launched the Singapore digital bank, Trust, in
partnership with FairPrice Group; 200k accounts already opened
-- Sustainability: Sustainable Finance income up 33% YoY;
leading in product innovation with >30 product variants live
Selected information concerning 3Q'22 financial performance
-- Return on tangible equity of 10.1%, up 380bps year-on-year
(YoY)
-- Income up 15% to $4.3bn, up 22% at ccy, on a normalised basis
(excluding the debit valuation adjustment (DVA) and the 2021 IFRS9
interest income adjustment)
- Net interest income up 24% at ccy on a normalised basis
- Record third quarter in Financial Markets up 21%, at ccy on a
normalised basis
- Wealth Management down 15% at ccy, with the largest market,
Hong Kong also down 15% at ccy
- Net interest margin (NIM) up 8bps QoQ to 1.43%, due to rising
interest rates partly offset by product mix change and hedges
-- Expenses increased 3% YoY to $2.7bn, or up 9% at ccy
- Increased investment spend, salary inflation and
performance-related pay accruals
- Positive 10% income-to-cost jaws at ccy and excluding DVA;
cost-to-income ratio down to 62% (3Q'21: 69%)
-- Credit impairment charge of $227m, up $120m YoY; up $160m
QoQ
- Includes $130m for China CRE exposures and $96m from sovereign
downgrades relating to Pakistan and Ghana
- Total management overlay now $204m; COVID-19 overlay down $39m
to $51m and China CRE overlay up $27m to $153m
- High-risk assets down $2.0bn QoQ, mainly driven by a reduction
in Early Alert accounts
- Loan-loss rate of 18bps year-to-date annualised
-- Underlying profit before tax up 35% at ccy to $1.4bn;
statutory profit before tax up 43% at ccy to $1.4bn
-- The Group's balance sheet remains strong, highly liquid and
well diversified
- Customer loans and advances up $5bn or 2% since 30.06.22; up
1% on an underlying basis
- Advances-to-deposit ratio 58.1% (30.06.22: 59.6%); liquidity
coverage ratio 156% (30.06.22:142%)
-- Risk-weighted assets (RWA) of $252bn down $3bn since
30.06.22
- Credit RWA down $3bn, Market risk RWA broadly flat and no
change to Operational risk RWA
-- The Group remains strongly capitalised
- CET1 ratio 13.7% (30.06.22: 13.9%); in the upper half of the
13 to 14% target
-- Earnings per share increased 10 cents or 43% to 33.1
cents
Outlook
Our performance this year has been strong, and the pace of
economic recovery in many of our footprint markets is encouraging,
notwithstanding increasing recessionary pressures in certain
western markets. Consequently, for full year 2022:
-- Income (ex-DVA at ccy) is now expected to grow around 13%,
in-line with the year-to-date growth
-- Full year average NIM is expected to be around 140bps
-- Expenses ex-UK bank levy are expected to be around
$10.6bn
-- Credit impairment is expected to be slightly above the
year-to-date annualised loan-loss rate of 18bps
-- We intend to operate dynamically within the full 13-14% CET1
target range
We now expect greater NIM progression to average around 165bps
in 2023, which combined with continued strong business momentum and
positive income-to-cost jaws, means we remain on-track to deliver
our 10% RoTE target in 2024, if not earlier.
Page 1
Statement of results
3 months 3 months
ended 30.09.22 ended 30.09.21 Change(1)
$million $million %
------------------------------------------------------- --------------- --------------- ---------
Underlying performance
Operating income 4,318 3,765 15
Operating expenses (including UK bank levy) (2,659) (2,594) (3)
Credit impairment (227) (107) (112)
Other impairment (32) (35) 9
Profit from associates and joint ventures 16 46 (65)
Profit before taxation 1,416 1,075 32
Profit/(loss) attributable to ordinary shareholders(2) 976 716 36
Return on ordinary shareholders' tangible equity
(%) 10.1 6.3 380bps
Cost-to-income ratio (excluding bank levy) (%) 61.6 68.9 730bps
------------------------------------------------------- --------------- --------------- ---------
Statutory performance
Operating income 4,329 3,764 15
Operating expenses (2,696) (2,647) (2)
Credit impairment (227) (108) (110)
Other impairment (31) (59) 47
Profit from associates and joint ventures 16 46 (65)
Profit before taxation 1,391 996 40
Taxation (313) (229) (37)
Profit for the period 1,078 767 41
Profit/(loss) attributable to parent company
shareholders 1,087 763 42
Profit/(loss) attributable to ordinary shareholders(2) 964 644 50
Return on ordinary shareholders' tangible equity
(%) 10.5 6.4 410bps
Cost-to-income ratio (including bank levy) (%) 62.3 70.3 800bps
------------------------------------------------------- --------------- --------------- ---------
30.09.22 30.09.21 Change
Balance sheet and capital $million $million %
--------------------------------------------------- ---------- ---------- -------
Total assets 864,435 817,102 6
Total equity 50,003 53,335 (6)
Average tangible equity attributable to ordinary
shareholders(2) 36,569 39,948 (8)
Loans and advances to customers 298,390 302,493 (1)
Customer accounts 447,259 453,260 (1)
Risk-weighted assets 252,293 267,555 (6)
Total capital 53,491 58,871 (9)
Total capital (%) 21.2 22.0 (80)bps
Common Equity Tier 1 34,504 39,167 (12)
Common Equity Tier 1 ratio (%) 13.7 14.6 (90)bps
Net Interest Margin (%) (adjusted) 1.43 1.23 20bps
Advances-to-deposits ratio (%)(3) 58.1 61.9 (3.8)
Liquidity coverage ratio (%) 156 145 11
Leverage ratio (%) 4.8 5.1 (30)bps
--------------------------------------------------- ---------- ---------- -------
Information per ordinary share Cents Cents Cents
Earnings per share - underlying(4) 33.1 23.1 10
- statutory(4) 32.7 20.7 12
Net asset value per share(5) 1,433 1,468 (35)
Tangible net asset value per share(5) 1,243 1,294 (51)
Number of ordinary shares at period end (millions) 2,905 3,078 (6)
--------------------------------------------------- ---------- ---------- -------
1 Variance is better/(worse) other than assets, liabilities and
risk-weighted assets. Change is percentage points difference
between two points rather than percentage change for total capital
ratio (%), Common Equity Tier 1 ratio (%), net interest margin (%),
advances-to-deposits ratio (%), liquidity coverage ratio (%),
leverage ratio (%). Change is cents difference between two points
rather than percentage change for earnings per share, net asset
value per share and tangible net asset value per share
2 Profit/(loss) attributable to ordinary shareholders is after
the deduction of dividends payable to the holders of non-cumulative
redeemable preference shares and Additional Tier 1 securities
classified as equity
3 When calculating this ratio, total loans and advances to
customers excludes reverse repurchase agreements and other similar
secured lending, excludes approved balances held with central
banks, confirmed as repayable at the point of stress and includes
loans and advances to customers held at fair value through profit
and loss. Total customer accounts include customer accounts held at
fair value through profit or loss
4 Represents the underlying or 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
Page 2
Group Chief Financial Officer's review
The Group delivered a strong performance in the third quarter of
2022
Summary of financial performance
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change change(1) 2Q'22 Change change(1) YTD'22 YTD'21 Change change(1)
$million $million % % $million % % $million $million % %
-------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Net interest
income 1,933 1,735 11 19 1,852 4 7 5,575 5,110 9 14
Other income 2,385 2,030 17 23 2,074 15 18 6,943 6,273 11 14
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Underlying
operating
income 4,318 3,765 15 21 3,926 10 13 12,518 11,383 10 14
Other
operating
expenses (2,659) (2,594) (3) (9) (2,636) (1) (4) (7,931) (7,680) (3) (8)
UK bank levy - - nm(3) nm(3) 5 (100) (100) 5 (6) 183 200
Underlying
operating
expenses (2,659) (2,594) (3) (9) (2,631) (1) (5) (7,926) (7,686) (3) (8)
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Underlying
operating
profit before
impairment
and taxation 1,659 1,171 42 47 1,295 28 30 4,592 3,697 24 27
Credit
impairment (227) (107) (112) (147) (67) nm(3) (194) (494) (60) nm(3) nm(3)
Other
impairment (32) (35) 9 12 (1) nm(3) nm(3) (34) (60) 43 43
Profit from
associates
and joint
ventures 16 46 (65) (67) 90 (82) (84) 169 180 (6) (5)
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Underlying
profit
before
taxation 1,416 1,075 32 35 1,317 8 10 4,233 3,757 13 15
Restructuring (25) (99) 75 76 (37) 32 35 (70) (222) 68 69
Other items - 20 (100) (100) - nm(3) nm(3) - 20 (100) (100)
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Statutory
profit before
taxation 1,391 996 40 43 1,280 9 11 4,163 3,555 17 19
Taxation (313) (229) (37) (52) (371) 16 9 (997) (860) (16) (23)
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Profit for the
period 1,078 767 41 41 909 19 19 3,166 2,695 17 18
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Net interest
margin
(%)(2) 1.43 1.23 20 1.35 8 1.36 1.23 13
Underlying
return
on tangible
equity
(%)(2) 10.1 6.3 380 8.9 120 10.1 8.7 140
Underlying
earnings
per share
(cents) 33.1 23.1 43 28.2 17 96.5 81.4 19
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
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
Statutory financial performance summary
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change change(1) 2Q'22 Change change(1) YTD'22 YTD'21 Change change(1)
$million $million % % $million % % $million $million % %
----------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Net
interest
income 1,932 1,733 11 19 1,850 4 7 5,570 5,102 9 14
Other
income 2,397 2,031 18 23 2,083 15 18 6,984 6,290 11 15
----------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Statutory
operating
income 4,329 3,764 15 21 3,933 10 13 12,554 11,392 10 14
Statutory
operating
expenses (2,696) (2,647) (2) (8) (2,663) (1) (5) (8,024) (7,868) (2) (7)
----------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Statutory
operating
profit
before
impairment
and
taxation 1,633 1,117 46 51 1,270 29 30 4,530 3,524 29 32
Credit
impairment (227) (108) (110) (145) (66) nm(3) (194) (490) (57) nm(3) nm(3)
Other
impairment (31) (59) 47 49 (9) nm(3) nm(3) (46) (99) 54 54
Profit from
associates
and joint
ventures 16 46 (65) (65) 85 (81) (81) 169 187 (10) (9)
----------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Statutory
profit
before
taxation 1,391 996 40 43 1,280 9 11 4,163 3,555 17 19
Taxation (313) (229) (37) (52) (371) 16 9 (997) (860) (16) (23)
----------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Profit for
the period 1,078 767 41 41 909 19 19 3,166 2,695 17 18
----------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Net
interest
margin
(%)(2) 1.43 1.23 20 1.35 8 1.36 1.23 13
Statutory
return on
tangible
equity
(%)(2) 10.5 6.4 410 8.7 180 10.1 7.9 220
Statutory
earnings
per share
(cents) 32.7 20.7 58 27.2 20 94.8 75.6 25
----------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
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
Page 3
Group Chief Financial Officer's review continued
The Group delivered a strong performance in the third quarter of
2022, generating an underlying return on tangible equity of 10.1
per cent with underlying profit before tax increasing 32 per cent.
Income grew 22 per cent on a constant currency basis and excluding
normalisation adjustments, with a continued strong performance in
Financial Markets, with Cash Management and Retail Deposits
benefitting from rising interest rates, which resulted in the net
interest margin increasing 8 basis points in the quarter. Loans and
advances to customers increased 1 per cent on an underlying basis
in the quarter. Expenses increased 9 per cent at constant currency,
due to investment spend, salary inflation, and performance-related
pay accruals. The credit impairment charges in the quarter of $227
million included further charges relating to the China Commercial
Real Estate sector and the impact of sovereign-related downgrades.
The Group remains well capitalised and highly liquid with a CET1
ratio of 13.7 per cent, an advances-to-deposits ratio of 58 per
cent, and a liquidity coverage ratio of 156 per cent.
All commentary that follows is on an underlying basis and
comparisons are made to the equivalent period in 2021 on a reported
currency basis, unless otherwise stated.
-- Operating income increased 15 per cent, or 22 per cent on a
constant currency basis, normalising for a $56 million positive
movement in DVA and a non-repeat of the prior-year $64 million
IFRS9 interest income catch-up adjustment (IFRS9 adjustment). A
strong Financial Markets performance and an expansion in the net
interest margin benefitting Cash Management and Retail Deposits was
partly offset by lower Wealth Management income and negative
Treasury income
-- Net interest income increased 11 per cent, or 24 per cent on
a constant currency basis and excluding the IFRS9 adjustment. The
net interest margin increased 23 per cent, or 27 basis points
excluding the IFRS9 adjustment, offset in part by a year-on-year 7
basis points impact from hedges, as the Group took advantage of
rising interest rates.
-- Other income increased 17 per cent, or 15 per cent excluding
the positive impact of movements in DVA, with continued strong
Financial Markets performance partly offset by lower Wealth
Management income
-- Operating expenses were up 3 per cent, or up 9 per cent on a
constant currency basis, reflecting the impact of inflation as well
as an increase in performance-related pay accruals and headcount.
Increased investment spend on transformational digital initiatives
includes a double-digit percentage increase in amortisation
charges. The Group generated a 10 per cent positive income-to-cost
jaws at constant currency excluding DVA, while the cost-to-income
ratio excluding the UK bank levy decreased 7 percentage points to
62 per cent
-- Credit impairment charges increased by $120 million to $227
million and were $160 million higher than in the prior quarter.
There was a $130 million charge relating to the China Commercial
Real Estate portfolio, including a $27 million increase in the
management overlay, and a $96 million charge relating to the
sovereign ratings downgrade of Ghanaian and Pakistani exposures.
The year-to-date loan-loss rate annualises to 18 basis points
-- Other impairment was a $32 million charge reflecting the
impact of a higher interest rate environment on the discount rate
used to value the aviation lease portfolio
-- Profit from associates and joint ventures reduced $30 million
to $16 million due to lower profits at China Bohai Bank
-- Charges relating to restructuring and other items decreased
$74 million to $25 million, reflecting an increase in restructuring
income and a non-repeat of prior-year impairment of property
-- Taxation was $313 million on a statutory basis, with an
underlying year-to-date effective tax rate of 24.0 per cent
compared to the prior-year rate of 23.5 per cent reflecting a
change in the geographic mix of profits
-- Underlying return on tangible equity increased by 380 basis
points to 10.1 per cent due to higher profits and lower tangible
equity, reflecting shareholder distributions, including share
buy-backs, and adverse movements in reserves due to movements in
interest rates and currency translation
Page 4
Group Chief Financial Officer's review continued
Operating income by product
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change change(1) 2Q'22 Change change(1) YTD'22 YTD'21 Change change(1)
$million $million % % $million % % $million $million % %
----------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Transaction
Banking 1,082 734 47 55 835 30 32 2,657 2,156 23 28
---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Trade & Working
Capital(2,3) 344 389 (12) (5) 343 - 4 1,049 1,099 (5) (1)
Cash Management 738 345 114 124 492 50 52 1,608 1,057 52 57
---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Financial
Markets(3) 1,540 1,311 17 22 1,373 12 15 4,636 3,887 19 22
---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Macro Trading 734 540 36 43 664 11 14 2,338 1,783 31 35
Credit
Markets(3) 440 516 (15) (13) 374 18 20 1,274 1,429 (11) (9)
Credit
Trading 156 144 8 12 87 79 83 353 377 (6) (5)
Financing
Solutions
&
Issuance(3) 284 372 (24) (22) 287 (1) 2 921 1,052 (12) (11)
Structured
Finance(3) 116 159 (27) (27) 102 14 15 312 387 (19) (19)
Financing &
Securities
Services 195 97 101 113 198 (2) 1 537 290 85 90
DVA 55 (1) nm(4) nm(4) 35 57 60 175 (2) nm(4) nm(4)
---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Lending &
Portfolio
Management(2,3) 166 214 (22) (20) 136 22 21 448 575 (22) (20)
Wealth Management 455 559 (19) (15) 458 (1) 2 1,443 1,759 (18) (16)
Retail Products 1,109 828 34 44 955 16 19 2,913 2,523 15 22
---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
CCPL & other
unsecured
lending 301 316 (5) 3 313 (4) (1) 919 956 (4) 1
Deposits 625 205 nm(4) nm(4) 363 72 76 1,236 647 91 104
Mortgage & Auto 141 260 (46) (41) 235 (40) (37) 623 775 (20) (15)
Other Retail
Products 42 47 (11) (7) 44 (5) (4) 135 145 (7) (4)
---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Treasury (4) 149 (103) (98) 205 (102) (99) 518 543 (5) -
Other(3) (30) (30) - 47 (36) 17 50 (97) (60) (62) 6
----------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Total underlying
operating
income 4,318 3,765 15 21 3,926 10 13 12,518 11,383 10 14
----------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
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 from Lending & Portfolio Management into Trade
& Working Capital including prior period numbers. Prior periods
have been re-presented and there is no change in the total
income
3 Income related to Group Special Asset Management, the Group's
specialist recovery unit previously reported in Other products has
been allocated to the relevant products. Prior periods have been
re-presented and there is no change in total income
4 Not meaningful
Transaction Banking income increased 47 per cent. Cash
Management income increased 114 per cent reflecting strong pricing
discipline to take advantage of a rising interest rate environment.
Trade & Working Capital decreased 12 per cent or 4 per cent on
a constant currency basis excluding the IFRS9 adjustment, with
balance sheet growth offset by margin compression. The margin
compression reflects greater distribution activities and a shift in
product mix towards lower margin but more RWA-efficient
products.
Financial Markets income increased 17 per cent and was up 21 per
cent on a constant currency basis and excluding normalisation
adjustments. Macro Trading delivered another strong quarter, up 36
per cent, benefitting from wider bid-offer spreads, trading gains
from elevated volatility, and increased client flow on the back of
rising interest rates and demand for energy hedging. Credit Markets
income decreased 15 per cent, with Financing Solutions &
Issuance impacted by lower capital market issuances and non-repeat
of the IFRS9 adjustment. Structured Finance income declined 27 per
cent due to lower Aviation Finance income, while Financing &
Security Services income doubled, including a further $27 million
from gains on mark to market liabilities, and a 17 per cent
increase in Securities Services income on the back of rising
interest rates.
Lending and Portfolio Management income decreased 22 per cent
due to the impact of the IFRS9 adjustment and increased cost of
funds.
Wealth Management income declined 19 per cent as major equity
markets remained subdued across the footprint reducing transaction
volumes, as well as from the impact of COVID-19 restrictions in key
markets. Bancassurance income was down 15 per cent due to continued
COVID-19 related restrictions while Wealth Management secured
lending income nearly halved on the back of client
deleveraging.
Retail Products income increased 34 per cent and was 44 per cent
higher on a constant currency basis. Deposit income more than
tripled due to active passthrough rate management in a rising
interest rate environment, partly offset by migration from CASA to
time deposits. On a constant currency basis, Mortgages & Auto
income decreased 41 per cent due to margin compression as mortgages
in Hong Kong reached the Best Lending Rate cap. Credit Cards &
Personal Loans income decreased 5 per cent but was up 3 per cent on
a constant currency basis reflecting a growth in credit card
balances and increased fee income.
Treasury income was a $4 million loss in the quarter primarily
due to the $97 million loss from structural and short-term hedges,
which offset increased yields on the remainder of the Treasury
portfolio and mark-to-market gains from FX swaps.
Page 5
Group Chief Financial Officer's review continued
Profit before tax by client segment and geographic region
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change change(2) 2Q'22 Change change(2) YTD'22 YTD'21 Change change(2)
$million $million % % $million % % $million $million % %
-------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Corporate,
Commercial
&
Institutional
Banking 1,285 868 48 53 868 48 51 3,252 2,689 21 24
Consumer,
Private
& Business
Banking(1) 478 293 63 75 348 37 41 1,198 1,146 5 9
Ventures(1) (85) (62) (37) (41) (74) (15) (18) (236) (185) (28) (30)
Central &
other items
(segment)(1) (262) (24) nm(3) nm(3) 175 nm(3) nm(3) 19 107 (82) (94)
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Underlying
profit
before
taxation 1,416 1,075 32 35 1,317 8 10 4,233 3,757 13 15
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Asia 1,063 927 15 19 955 11 15 2,925 3,166 (8) (5)
Africa &
Middle East 163 222 (27) (11) 279 (42) (34) 744 697 7 14
Europe &
Americas 293 161 82 92 192 53 54 997 498 100 103
Central &
other items
(region) (103) (235) 56 38 (109) 6 (21) (433) (604) 28 18
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
Underlying
profit
before
taxation 1,416 1,075 32 35 1,317 8 10 4,233 3,757 13 15
-------------- ---------- ---------- ------ --------- ---------- ------ --------- ---------- ---------- ------ ---------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior periods have been restated
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 Not meaningful
Corporate, Commercial & Institutional Banking profit
increased 48 per cent, or 42 per cent excluding DVA. Income grew 21
per cent excluding DVA with Cash Management benefitting from rising
interest rates and strong Financial Markets activity partly offset
by 3 per cent higher expenses and a $58 million increase in credit
impairments.
Consumer, Private & Business Banking profit increased 75 per
cent on a constant currency basis, with income up 18 per cent as
the benefit from higher interest rates was partly offset by subdued
Wealth Management. Expenses increased 3 per cent while credit
impairments were 24 per cent higher.
Ventures losses increased by over a third to $85 million,
reflecting the Group's continued investment in transformational
digital initiatives with expenses increasing 45 per cent, while
income was $10 million in the quarter compared to zero in the same
quarter last year.
Central & other items (segment) recorded a loss of $262
million with an income loss of $37 million reflecting the negative
impact from hedges and lower profit share from China Bohai Bank.
Expenses increased 15 per cent while credit impairments were $45
million higher.
Asia profits increased 19 per cent on a constant currency basis
as income grew 19 per cent, partly offset by 9 per cent growth in
expenses with credit impairments increasing by $109 million and
China Bohai Bank profit share lower by $25 million.
Africa & Middle East profits decreased 11 per cent on a
constant currency basis as impairment charges have more than
doubled reflecting the impact of sovereign downgrades. Income
increased 8 per cent which was partly offset by expenses increasing
10 per cent.
Europe & Americas profit increased 82 per cent as income
grew 23 per cent, or 17 per cent excluding positive movements in
DVA, due to strong Financial Markets and Cash Management
performance partly offset by losses in Treasury. Expenses increased
7 per cent while there was an increase in the credit impairment
release.
Central & other items (region) recorded a loss of $103
million, which is less than half the loss in the same quarter in
2021, with a $85 million increase in income and $35 million lower
expenses.
Page 6
Group Chief Financial Officer's review continued
Adjusted net interest income and margin
3Q'22 3Q'21 Change(1) 2Q'22 Change(1) YTD'22 YTD'21 Change(1)
$million $million % $million % $million $million %
------------------------- ---------- ---------- ---------- ---------- ----------
Adjusted net interest
income(2) 2,023 1,732 17 1,888 7 5,720 5,107 12
Average interest-earning
assets 562,509 557,416 1 561,493 - 564,382 557,283 1
Average interest-bearing
liabilities 522,641 512,406 2 524,273 - 525,600 513,333 2
------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Gross yield (%)(3) 2.88 1.84 104 2.21 67 2.34 1.85 49
Rate paid (%)(3) 1.57 0.66 91 0.92 65 1.06 0.68 38
Net yield (%)(3) 1.31 1.18 13 1.29 2 1.28 1.17 11
Net interest margin
(%)(3,4) 1.43 1.23 20 1.35 8 1.36 1.23 13
------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
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, annualised
Adjusted net interest income increased 17 per cent due to a 19
per cent increase in the net interest margin which averaged 143
basis points in the quarter, increasing 27 basis points
year-on-year excluding the IFRS9 adjustment, and 8 basis points
compared to the prior quarter:
-- Average interest-earning assets were flat in the quarter with
underlying asset growth offset by risk-weight asset optimisation
actions and currency translation. Gross yields increased 67 basis
points compared with the prior quarter due the impact of rising
interest rates on customer loan pricing and on Treasury portfolio
yields partly offset by a 11 basis point quarter-on-quarter impact
from hedges
-- Average interest-bearing liabilities were flat in the
quarter. The rate paid on liabilities increased 65 basis points
compared with the average in the prior quarter reflecting the
impact of interest rate movements and migration from CASA to time
deposits
Credit risk summary
Income statement
3Q'22 3Q'21 Change(1) 2Q'22 Change(1) YTD'22 YTD'21 Change(1)
$million $million % $million % $million $million %
------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Total credit impairment
charge/(release) 227 107 112 67 239 494 60 723
Of which stage 1 and 2 178 30 493 71 151 168 (75) (324)
Of which stage 3 49 77 (36) (4) (1,325) 326 135 141
------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting
period to prior reporting periods
Page 7
Group Chief Financial Officer's review continued
Balance sheet
30.09.22 30.06.22 Change(1) 31.12.21 Change(1) 30.09.21 Change(1)
$million $million % $million % $million %
------------------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------
Gross loans and advances to
customers(2) 303,538 298,728 2 304,122 - 308,083 (1)
---------- ---------- --------- ---------- --------- ---------- ---------
Of which stage 1 284,877 279,136 2 279,178 2 284,140 -
Of which stage 2 11,460 12,539 (9) 16,849 (32) 15,759 (27)
Of which stage 3 7,201 7,053 2 8,095 (11) 8,184 (12)
---------- ---------- --------- ---------- --------- ---------- ---------
Expected credit loss provisions (5,148) (5,220) (1) (5,654) (9) (5,590) (8)
---------- ---------- --------- ---------- --------- ---------- ---------
Of which stage 1 (497) (502) (1) (473) 5 (411) 21
Of which stage 2 (434) (385) 13 (524) (17) (535) (19)
Of which stage 3 (4,217) (4,333) (3) (4,657) (9) (4,644) (9)
---------- ---------- --------- ---------- --------- ---------- ---------
Net loans and advances to customers 298,390 293,508 2 298,468 - 302,493 (1)
---------- ---------- --------- ---------- --------- ---------- ---------
Of which stage 1 284,380 278,634 2 278,705 2 283,729 -
Of which stage 2 11,026 12,154 (9) 16,325 (32) 15,224 (28)
Of which stage 3 2,984 2,720 10 3,438 (13) 3,540 (16)
---------- ---------- --------- ---------- --------- ---------- ---------
Cover ratio of stage 3 before/after 59 / 61 / (2) / 58 / 57 /
collateral (%)(3) 77 80 (3) 75 1 / 2 77 2 / 0
Credit grade 12 accounts ($million) 1,140 835 37 1,730 (34) 2,175 (48)
Early alerts ($million) 4,957 7,524 (34) 5,534 (10) 7,478 (34)
Investment grade corporate exposures
(%)(3) 75 71 4 69 6 68 7
------------------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------
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 $18,032 million at 30
September 2022, $7,894 million at 30 June 2022, $7,331 million at
31 December 2021 and $8,836 million at 30 September 2021
3 Change is the percentage points difference between the two
points rather than the percentage change
Asset quality remained resilient in the third quarter, despite a
year-on-year increase in the credit impairment charge. However, the
Group continues to remain alert to a volatile and challenging
external environment including the pressures in the China
Commercial Real Estate sector, continued impact of COVID-19 in a
reducing number of key markets, commodity price volatility and the
impact of the Russia/Ukraine war. This war in part contributed to
both commodity price volatility and the accelerated trajectory of
inflation and interest rate rises across our footprint, which in
turn have driven a sustained appreciation of the US dollar versus
the majority of developed and emerging market currencies. These
factors have led to increased sovereign credit stress in a handful
of our markets.
Credit impairment was a $227 million charge in the quarter, a
$120 million increase, and represents an annualised year-to-date
loan-loss rate of 18 basis points which is below the Group's
medium-term guidance of 30-35 basis points.
The Stage 1 and 2 impairment charge of $178 million includes $96
million relating to the sovereign downgrade of Pakistan and Ghana
and an additional $14 million modelled impairment charges relating
to the China Commercial Real Estate sector. There was a net $12
million release from the management overlay; with a $39 million
release in the element relating to COVID-19, while the element
relating to China Commercial Real Estate sector increased by $27
million. The management overlay totals $204 million as at 30
September 2022, with the COVID-19 element totalling $51 million and
$153 million relating to the China Commercial Real Estate
sector.
Stage 3 impairments of $49 million include $89 million relating
to China Commercial Real Estate exposures and higher charge-offs in
Consumer, Private and Business Banking partly offset by releases in
Corporate, Commercial & Institutional Banking.
Gross Stage 3 loans and advances to customers of $7.2 billion
were 2 per cent higher compared to 30 June 2022 primarily due to
the downgrade of select China Commercial Real Estate clients and
the sovereign ratings downgrade of Sri Lankan local currency
exposures. These credit-impaired loans represented 2.4 per cent of
gross loans and advances, an increase of 1 basis points compared to
30 June 2022.
The Stage 3 cover ratio of 59 per cent decreased 2 percentage
points compared with the position as at 30 June 2022, and the cover
ratio post collateral of 77 per cent decreased by 3 percentage
points, with both ratios decreasing due to lower coverage on new
inflows into Stage 3.
Credit grade 12 balances have increased 37 per cent since 30
June 2022 reflecting the impact of the sovereign ratings downgrade
of Ghanaian exposures into credit grade 12 as well as credit
deterioration of select China Commercial Real Estate clients. This
is partly offset by outflows into Stage 3 of Sri Lankan local
currency exposures and specific China Commercial Real Estate
exposures.
Early Alert accounts of $5.0 billion have decreased by $2.6
billion since 30 June 2022, due to client regularisations out of
Early Alert and downgrades into credit grade 12. The Group is
continuing to carefully monitor its exposures in vulnerable sectors
and select markets, given the unusual stresses caused by the
currently challenging macro-economic environment.
The proportion of investment grade corporate exposures has
increased 4 percentage points since 30 June 2022 to 75 per cent,
partly as a result of the increase in reverse repurchase agreement
balances in the quarter.
Page 8
Group Chief Financial Officer's review continued
Restructuring, goodwill impairment and other items
3Q'22 3Q'21 2Q'22
----------- ----------------------------------- ----------------------------------- -----------------------------------
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 11 - - (21) - 20 7 - -
Operating
expenses (37) - - (53) - - (32) - -
Credit
impairment - - - (1) - - 1 - -
Other
impairment 1 - - (24) - - (8) - -
Profit from
associates
and joint
ventures - - - - - - (5) - -
----------- ------------- ---------- -------- ------------- ---------- -------- ------------- ---------- --------
Loss before
taxation (25) - - (99) - 20 (37) - -
----------- ------------- ---------- -------- ------------- ---------- -------- ------------- ---------- --------
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 $25 million primarily reflect expenses
relating to redundancies partly offset by income from the Principal
Finance and Ship Leasing portfolios.
The Group has announced the exit of seven markets in the Africa
and Middle East region and will focus solely on the Corporate,
Commercial & Institutional Banking segment in two more. It is
expected that the results from the markets and businesses being
exited will be reported in restructuring from 1 January 2023.
Balance sheet and liquidity
30.09.22 30.06.22 Change 31.12.21 Change(1) 30.09.21 Change(1)
$million $million % $million % $million %
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
Assets
Loans and advances to banks 43,315 36,201 20 44,383 (2) 45,754 (5)
Loans and advances to customers 298,390 293,508 2 298,468 - 302,493 (1)
Other assets 522,730 506,208 3 484,967 8 468,855 11
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
Total assets 864,435 835,917 3 827,818 4 817,102 6
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
Liabilities
Deposits by banks 27,728 31,173 (11) 30,041 (8) 34,480 (20)
Customer accounts 447,259 453,742 (1) 474,570 (6) 453,260 (1)
Other liabilities 339,445 301,310 13 270,571 25 276,027 23
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
Total liabilities 814,432 786,225 4 775,182 5 763,767 7
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
Equity 50,003 49,692 1 52,636 (5) 53,335 (6)
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
Total equity and liabilities 864,435 835,917 3 827,818 4 817,102 6
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
Advances-to-deposits ratio (%)(2) 58.1% 59.6% 59.1% 61.9%
Liquidity coverage ratio (%) 156% 142% 143% 145%
---------------------------------- ---------- ---------- ------ ---------- --------- ---------- ---------
1 Variance is increase/(decrease)comparing current reporting period to prior reporting periods
2 The Group now excludes $21,683 million held with central banks
(30.06.22: $16,918 million, 31.12.21: $15,168 million, 30.09.21:
$16,986 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 banks increased 20 per cent or by $7
billion from 30 June 2022 to $43 billion reflecting an increase in
money market loans and Financial Institutions Trade loans
-- Loans and advances to customers grew 2 per cent from 30 June
2022 to $298 billion with a $10 billion increase in reverse
repurchase agreements held to collect in the quarter. There was
underlying growth of $2 billion (1 per cent) in the quarter,
primarily in Trade, excluding the increase in reverse repurchase
agreements and central bank placements, as well as a $2 billion
reduction from risk-weight asset optimisation actions and the
impact of currency translation which reduced balances by $7
billion
-- Customer accounts of $447 billion decreased 1 per cent from
30 June 2022 but increased 1 per cent excluding the impact of
currency translation
-- Other assets increased 3 per cent in the third quarter of
2022 with increased derivative balances partly offset by reductions
in investment securities and unsettled trade balances.
-- Other liabilities increased 13 per cent with increased
derivative liabilities and repurchase agreements
Page 9
Group Chief Financial Officer's review continued
The advances-to-deposits ratio declined to 58.1 per cent from
59.6 per cent at 30 June 2022. The point-in-time liquidity coverage
ratio remains well above the minimum regulatory requirement of 100
per cent at 156 per cent, increasing 14 percentage points in the
quarter due to higher medium-term and structured note issuance
supporting a reduction in shorter term wholesale funding and some
period end inflows of corporate term deposits in some markets.
Risk-weighted assets
30.09.22 30.06.22 Change(1) 31.12.21 Change(1) 30.09.21 Change(1)
$million $million % $million % $million %
----------------- ---------- ---------- --------- ---------- --------- ---------- ---------
By risk type
Credit risk 202,523 205,179 (1) 219,588 (8) 219,628 (8)
Operational risk 27,177 27,177 - 27,116 - 27,116 -
Market risk 22,593 22,726 (1) 24,529 (8) 20,811 9
----------------- ---------- ---------- --------- ---------- --------- ---------- ---------
Total RWAs 252,293 255,082 (1) 271,233 (7) 267,555 (6)
----------------- ---------- ---------- --------- ---------- --------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting
period to prior reporting periods
Total risk-weighted assets (RWAs) of $252.3billion decreased 1
per cent or $2.8 billion from 30 June 2022:
-- Credit Risk RWA decreased by $2.7 billion in the third
quarter to $202.5 billion. There was a $2.9 billion increase from
negative credit migration reflecting the impact of sovereign
downgrades and a $4.0 billion increase from a combination of asset
growth and mix. This was more than offset by a $5.6 billion
reduction from currency translation, a further $3.6 billion
reduction in the Corporate, Commercial & Institutional Banking
low-returning portfolio targeted for optimisation and $0.5 billion
from other RWA efficiency actions
-- Operational Risk RWA was flat at $27.2 billion
-- Market Risk RWA decreased $0.1 billion to $22.6 billion
Capital base and ratios
30.09.22 30.06.22 Change(1) 31.12.21 Change(1) 30.09.21 Change(1)
$million $million % $million % $million %
-------------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------
CET1 capital 34,504 35,373 (2) 38,362 (10) 39,167 (12)
Additional Tier 1 capital (AT1) 6,485 5,244 24 6,791 (5) 6,791 (5)
-------------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------
Tier 1 capital 40,989 40,617 1 45,153 (9) 45,958 (11)
Tier 2 capital 12,502 13,020 (4) 12,491 - 12,913 (13)
-------------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------
Total capital 53,491 53,637 - 57,644 (7) 58,871 (9)
-------------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------
CET1 capital ratio (%)(2) 13.7 13.9 (0.2) 14.1 (0.4) 14.6 (0.9)
Total capital ratio (%)(2) 21.2 21.0 0.2 21.3 (0.1) 22.0 (0.8)
Leverage ratio (%)(2) 4.8 4.5 0.3 4.9 (0.1) 5.1 (0.3)
-------------------------------- ---------- ---------- --------- ---------- --------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting
period to prior reporting periods
2 Change is percentage points difference between two points rather than percentage change
The Group's CET1 ratio of 13.7 per cent was 19 basis points
lower than at 30 June 2022. The CET1 ratio remains 3.5 percentage
points above the Group's regulatory minimum of 10.2 per cent and in
the upper half of the 13 to 14 per cent medium-term target
range.
As of 30 September 2022, the Group was partway through the $500
million share buyback programme it announced on 1st August 2022 and
had spent $432 million purchasing 63 million ordinary shares,
reducing the share count by approximately 2 per cent. Even though
the share buyback was still ongoing on 30 September 2022, the
entire $500 million is deducted from CET1 in the period, reducing
the ratio by 20 basis points.
The Group is accruing a foreseeable dividend in respect of the
final 2022 ordinary share dividend in the third quarter. This is
not an indication of the Group's final 2022 ordinary share
dividend, which will be proposed by the Board at the presentation
of the 2022 full year results. The increase in the foreseeable
dividend for ordinary dividend and AT1 coupons reduced the CET1
ratio by 18 basis points
The CET1 ratio was reduced by a further 11 basis points, with 3
basis points from a reduction in reserves mainly relating to a
reversal of prior year unrealised gains on debt securities as a
result of higher market yields, and 8 basis points from movements
in FX reducing both the translation reserve and RWAs. The Group has
reduced its sensitivity to higher market yields as a result of
hedging and other mitigation strategies.
Excluding the impact of currency translation, RWAs increased by
an underlying $2.6 billion during the quarter, reducing the CET1
ratio by 14 basis points
The above CET1 ratio headwinds were partly offset by 44 basis
points uplift from profit accretion in the quarter.
The Group's leverage ratio of 4.8 per cent is 22 basis points
higher than as at 30 June 2022. This reflects increased Tier 1
capital from a $1.25 billion issuance of AT1 balances as well as
decreased leverage exposures driven by leverage optimisation
initiatives. The Group's leverage ratio remains significantly above
its minimum requirement of 3.7 per cent.
Page 10
Group Chief Financial Officer's review continued
Outlook
Our performance this year has been strong, and the pace of
economic recovery in many of our footprint markets is encouraging,
notwithstanding increasing recessionary pressures in certain
western markets. Consequently, for full year 2022:
-- Income (ex-DVA at ccy) is now expected to grow around 13 per
cent, in-line with the year-to-date growth
-- Full year average net interest margin is expected to be around 140 basis points
-- Expenses ex-UK bank levy are expected to be around $10.6 billion
-- Credit impairment is expected to be slightly above the
year-to-date annualised loan-loss rate of 18 basis points
-- We intend to operate dynamically within the full 13 to 14 per cent CET1 target range
We now expect greater net interest margin progression to average
around 165 basis points in 2023, which combined with continued
strong business momentum and positive income-to-cost jaws, means we
remain on-track to deliver our 10 per cent RoTE target in 2024, if
not earlier.
Andy Halford
Group Chief Financial Officer
26 October 2022
Page 11
Supplementary financial information
Underlying performance by client segment
3Q'22
-------------------------------------- ------------------------------------------------------------
Consumer,
Corporate, Private Central
Commercial & &
& Institutional Business other
Banking Banking Ventures items Total
$million $million $million $million $million
-------------------------------------- ---------------- --------- --------- --------- ---------
Operating income 2,745 1,600 10 (37) 4,318
---------------- --------- --------- --------- ---------
External 2,405 1,287 10 616 4,318
Inter-segment 340 313 - (653) -
---------------- --------- --------- --------- ---------
Operating expenses (1,347) (1,035) (87) (190) (2,659)
-------------------------------------- ---------------- --------- --------- --------- ---------
Operating profit/(loss) before
impairment losses and taxation 1,398 565 (77) (227) 1,659
Credit impairment (82) (87) (4) (54) (227)
Other impairment (31) - - (1) (32)
Profit from associates and joint
ventures - - (4) 20 16
-------------------------------------- ---------------- --------- --------- --------- ---------
Underlying profit/(loss) before
taxation 1,285 478 (85) (262) 1,416
Restructuring 2 (22) - (5) (25)
Other items - - - - -
-------------------------------------- ---------------- --------- --------- --------- ---------
Statutory profit/(loss) before
taxation 1,287 456 (85) (267) 1,391
-------------------------------------- ---------------- --------- --------- --------- ---------
Total assets 453,985 129,698 1,574 279,178 864,435
Of which: loans and advances to
customers(2) 190,782 126,961 480 35,388 353,611
---------------- --------- --------- --------- ---------
loans and advances to customers 138,017 126,927 480 32,966 298,390
loans held at fair value through
profit or loss 52,765 34 - 2,422 55,221
---------------- --------- --------- --------- ---------
Total liabilities 534,469 176,087 981 102,895 814,432
Of which: customer accounts(2) 332,833 171,730 886 6,517 511,966
Risk-weighted assets 149,779 50,923 1,158 50,433 252,293
Underlying return on tangible
equity (%) 17.5 19.2 nm(3) (15.6) 10.1
Cost to income ratio (excluding
bank levy) (%) 49.1 64.7 nm(3) nm(3) 61.6
-------------------------------------- ---------------- --------- --------- --------- ---------
3Q'21
-------------------------------------- -------------------------------------------------------------------
Consumer,
Private
&
Central
Business &
Corporate,
Commercial
& Institutional other
Banking(1) Banking(1) Ventures(1) items(1) Total
$million $million $million $million $million
-------------------------------------- ---------------- ------------ ----------- ---------- ----------
Operating income 2,226 1,431 - 108 3,765
---------------- ------------ ----------- ---------- ----------
External 2,115 1,349 - 301 3,765
Inter-segment 111 82 - (193) -
---------------- ------------ ----------- ---------- ----------
Operating expenses (1,304) (1,065) (60) (165) (2,594)
-------------------------------------- ---------------- ------------ ----------- ---------- ----------
Operating profit/(loss) before
impairment losses and taxation 922 366 (60) (57) 1,171
Credit impairment (24) (73) (1) (9) (107)
Other impairment (30) - - (5) (35)
Profit from associates and joint
ventures - - (1) 47 46
-------------------------------------- ---------------- ------------ ----------- ---------- ----------
Underlying profit/(loss) before
taxation 868 293 (62) (24) 1,075
Restructuring (32) (10) - (57) (99)
Other items - - 20 - 20
-------------------------------------- ---------------- ------------ ----------- ---------- ----------
Statutory profit/(loss) before
taxation 836 283 (42) (81) 996
-------------------------------------- ---------------- ------------ ----------- ---------- ----------
Total assets 390,770 138,109 774 287,449 817,102
Of which: loans and advances to
customers(2) 197,121 135,333 42 31,272 363,768
---------------- ------------ ----------- ---------- ----------
loans and advances to customers 137,936 135,251 42 29,264 302,493
loans held at fair value through
profit or loss 59,185 82 - 2,008 61,275
---------------- ------------ ----------- ---------- ----------
Total liabilities 468,431 179,423 794 115,119 763,767
Of which: customer accounts(2) 320,516 175,278 721 16,477 512,992
Risk-weighted assets 161,915 52,583 608 52,449 267,555
Underlying return on tangible
equity (%) 10.6 11.2 nm(3) (5.6) 6.3
Cost to income ratio (excluding
bank levy) (%) 58.6 74.4 nm(3) 152.8 68.9
-------------------------------------- ---------------- ------------ ----------- ---------- ----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior period has been restated
2 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
3 Not meaningful
Page 12
Supplementary financial information continued
Corporate, Commercial & Institutional Banking(1)
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change(5) change(4,5) 2Q'22 Change(5) change(4,5) YTD'22 YTD'21 Change(5) change(4,5)
$million $million % % $million % % $million $million % %
----------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Operating income 2,745 2,226 23 28 2,305 19 22 7,622 6,518 17 20
Transaction
Banking 1,050 712 47 56 810 30 32 2,574 2,089 23 28
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Trade & Working
Capital(2,3) 332 375 (11) (5) 328 1 5 1,006 1,057 (5) (1)
Cash Management 718 337 113 123 482 49 51 1,568 1,032 52 57
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Financial Markets 1,540 1,311 17 22 1,373 12 15 4,636 3,887 19 22
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Macro Trading 734 540 36 43 664 11 14 2,338 1,783 31 35
Credit
Markets(3) 440 516 (15) (13) 374 18 20 1,274 1,429 (11) (9)
Credit
Trading 156 144 8 12 87 79 83 353 377 (6) (5)
Financing
Solutions
&
Issuance(3) 284 372 (24) (22) 287 (1) 2 921 1,052 (12) (11)
Structured
Finance 116 159 (27) (27) 102 14 15 312 387 (19) (19)
Financing &
Securities
Services(3) 195 97 101 113 198 (2) 1 537 290 85 90
DVA 55 (1) nm(9) nm(9) 35 57 60 175 (2) nm(9) nm(9)
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Lending &
Portfolio
Management(2,3) 156 206 (24) (22) 124 26 23 418 550 (24) (22)
Wealth Management 1 1 - nm(9) - nm(9) nm(9) 1 1 - (100)
Retail Products 1 - nm(9) nm(9) - nm(9) nm(9) 1 - nm(9) nm(9)
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Deposits 1 1 - nm(9) - nm(9) nm(9) 1 1 - nm(9)
Other Retail
Products(3) - (1) 100 nm(9) - nm(9) nm(9) - (1) 100 nm(9)
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Other (3) (4) 25 33 (2) (50) 33 (8) (9) 11 11
Operating
expenses (1,347) (1,304) (3) (7) (1,388) 3 1 (4,061) (3,886) (5) (8)
----------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Operating profit
before
impairment
losses
and taxation 1,398 922 52 58 917 52 55 3,561 2,632 35 39
Credit impairment (82) (24) nm(9) nm(9) (49) (67) (68) (278) 112 nm(9) nm(9)
Other impairment (31) (30) (3) (3) - nm(9) nm(9) (31) (55) 44 44
----------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Underlying profit
before taxation 1,285 868 48 53 868 48 51 3,252 2,689 21 24
Restructuring 2 (32) 106 106 (2) 200 167 (2) (70) 97 99
----------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Statutory profit
before
taxation 1,287 836 54 59 866 49 52 3,250 2,619 24 27
----------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Total assets 453,985 390,770 16 19 427,483 6 8 453,985 390,770 16 19
Of which: loans
and
advances to
customers(6) 190,782 197,121 (3) 1 192,439 (1) 1 190,782 197,121 (3) 1
Total liabilities 534,469 468,431 14 18 500,400 7 9 534,469 468,431 14 18
Of which:
customer
accounts(6) 332,833 320,516 4 8 321,517 4 5 332,833 320,516 4 8
Risk-weighted
assets 149,779 161,915 (7) nm(9) 154,177 (3) nm(9) 149,779 161,915 (7) nm(9)
Underlying return
on risk-weighted
assets
(%)(7) 3.4 2.0 140bps nm(9) 2.2 120bps nm(9) 2.8 2.1 70bps nm(9)
Underlying return
on tangible
equity
(%)(7) 17.5 10.6 690bps nm(9) 11.4 610bps nm(9) 14.3 11.0 330bps nm(9)
Cost to income
ratio
(%)(8) 49.1 58.6 9.5 9.6 60.2 11.1 11.1 53.3 59.6 6.3 6.2
----------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior period has been restated
2 Following a reorganisation, there has been a reclassification
of balances from Lending & Portfolio Management into Trade
& Working capital including prior period numbers. Prior periods
have been re-presented and there is no change in the total
income
3 Income related to Group Special Asset Management, the Group's
specialist recovery unit previously reported in Other products has
been allocated to the relevant products. Prior periods have been
re-presented and there is no change in total income
4 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
5 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)
6 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
7 Change is the basis points (bps) difference between the two
periods rather than the percentage change
8 Change is the percentage points difference between the two
periods rather than the percentage change
9 Not meaningful
Page 13
Supplementary financial information continued
Performance highlights
-- Underlying profit before tax of $1,285 million was up 48 per
cent driven mainly by higher income, partially offset by higher
expenses and credit impairment
-- Underlying operating income of $2,745 million was up 23 per
cent (up 30 per cent ccy excluding a positive DVA and the IFRS9
adjustments) primarily due to strong performance across Transaction
Banking Cash revenue supported by higher interest rates and strong
Macro Trading Income in Financial Markets
-- Higher credit impairment primarily from charges on China
Commercial Real Estate exposures and the sovereign ratings
downgrade in some of our footprint markets
-- Risk-weighted assets down $13 billion since 31 December 2021,
mainly as a result of optimisation initiatives and favourable FX
movements, partly offset by business growth and regulatory
impact
-- RoTE increased to 17.5 per cent from 10.6 per cent
Page 14
Supplementary financial information continued
Consumer, Private & Business Banking(1)
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change(4) change(3,4) 2Q'22 Change(4) change(3,4) YTD'22 YTD'21 Change(4) change(3,4)
$million $million % % $million % % $million $million % %
--------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Operating
income 1,600 1,431 12 18 1,448 10 13 4,471 4,402 2 6
Transaction
Banking 32 22 45 50 25 28 32 83 67 24 26
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Trade &
Working
Capital(2) 12 14 (14) (7) 15 (20) (13) 43 42 2 5
Cash
Management 20 8 150 150 10 100 100 40 25 60 60
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Lending &
Portfolio
Management(2) 10 8 25 25 12 (17) (9) 30 25 20 20
Wealth
Management 454 558 (19) (15) 458 (1) 2 1,442 1,758 (18) (16)
Retail Products 1,104 829 33 43 951 16 19 2,903 2,528 15 21
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
CCPL & other
unsecured
lending 295 316 (7) 1 308 (4) (1) 907 957 (5) (1)
Deposits 626 205 nm(8) nm(8) 363 72 76 1,238 649 91 104
Mortgage &
Auto 141 260 (46) (41) 235 (40) (37) 623 775 (20) (15)
Other Retail
Products 42 48 (13) (7) 45 (7) (4) 135 147 (8) (4)
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Other - 14 (100) (100) 2 (100) (100) 13 24 (46) (38)
Operating
expenses (1,035) (1,065) 3 (3) (1,054) 2 (1) (3,106) (3,090) (1) (4)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Operating
profit before
impairment
losses
and taxation 565 366 54 65 394 43 47 1,365 1,312 4 9
Credit
impairment (87) (73) (19) (24) (45) (93) (93) (166) (166) - (5)
Other
impairment - - nm(8) nm(8) (1) 100 100 (1) - nm(8) nm(8)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Underlying
profit
before
taxation 478 293 63 75 348 37 41 1,198 1,146 5 9
Restructuring (22) (10) (120) (120) (14) (57) (57) (43) (32) (34) (39)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Statutory
profit before
taxation 456 283 61 73 334 37 40 1,155 1,114 4 8
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Total assets 129,698 138,109 (6) 2 134,979 (4) - 129,698 138,109 (6) 2
Of which:
loans and
advances to
customers(5) 126,961 135,333 (6) 2 132,275 (4) - 126,961 135,333 (6) 2
Total
liabilities 176,087 179,423 (2) 5 179,637 (2) 1 176,087 179,423 (2) 5
Of which:
customer
accounts(5) 171,730 175,278 (2) 4 175,747 (2) - 171,730 175,278 (2) 4
Risk-weighted
assets 50,923 52,583 (3) nm(8) 52,518 (3) nm(8) 50,923 52,583 (3) nm(8)
Underlying
return
on
risk-weighted
assets
(%)(6) 3.7 2.2 150bps nm(8) 2.5 120bps nm(8) 3.0 2.8 20bps nm(8)
Underlying
return
on tangible
equity
(%)(6) 19.2 11.2 800bps nm(8) 13.6 560bps nm(8) 15.7 14.3 140bps nm(8)
Cost to income
ratio
(%)(7) 64.7 74.4 9.7 10.0 72.8 8.1 8.0 69.5 70.2 0.7 0.9
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior period has been restated
2 Following a reorganisation, there has been a reclassification
of balances from Lending & Portfolio Management into Trade
& Working capital including prior period numbers. Prior periods
have been re-presented and there is no change in the total
income
3 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
4 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)
5 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
6 Change is the basis points (bps) difference between the two
periods rather than the percentage change
7 Change is the percentage points difference between the two
periods rather than the percentage change
8 Not meaningful
Performance highlights
-- Underlying profit before tax of $478 million was up 63 per
cent, mainly driven by higher income partly offset by higher
expenses. Overall Impairments trend remain stable
-- Underlying operating income of $1,600 million was up 12 per
cent (up 18 per cent on a constant currency basis) as higher income
in Retail due to volume growth across most products, in addition to
interest rate benefits within Deposits, partly offset by Wealth
management which continues to face headwinds due to market
volatility
-- RoTE increased from 11.2 per cent to 19.2 per cent
Page 15
Supplementary financial information continued
Ventures(1)
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change(3) change(2,3) 2Q'22 Change(3) change(2,3) YTD'22 YTD'21 Change(3) change(2,3)
$million $million % % $million % % $million $million % %
--------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Operating
income 10 - nm(7) nm(7) 4 150 80 15 (3) nm(7) nm(7)
Retail Products 4 (1) nm(7) nm(7) 4 0 (20) 9 (5) nm(7) nm(7)
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
CCPL & other
unsecured
lending 6 - nm(7) nm(7) 5 20 20 12 (1) nm(7) nm(7)
Deposits (2) (1) (100) (100) - nm(7) nm(7) (3) (3) - -
Other Retail
Products - - nm(7) nm(7) (1) 100 nm(7) - (1) 100 nm(7)
---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Other 6 1 nm(7) nm(7) - nm(7) nm(7) 6 2 200 200
Operating
expenses (87) (60) (45) (49) (74) (18) (19) (233) (178) (31) (34)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Operating loss
before
impairment
losses
and taxation (77) (60) (28) (34) (70) (10) (14) (218) (181) (20) (24)
Credit
impairment (4) (1) nm(7) nm(7) - nm(7) nm(7) (7) (1) nm(7) nm(7)
Loss from
associates
and joint
ventures (4) (1) nm(7) (200) (4) - 25 (11) (3) nm(7) (175)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Underlying loss
before
taxation (85) (62) (37) (41) (74) (15) (18) (236) (185) (28) (30)
Restructuring - - nm(7) nm(7) (1) 100 100 (1) - nm(7) nm(7)
Other items - 20 (100) (100) - nm(7) nm(7) - 20 (100) (100)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Statutory loss
before
taxation (85) (42) (102) (110) (75) (13) (16) (237) (165) (44) (47)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
Total assets 1,574 774 103 105 1,371 15 15 1,574 774 103 105
Of which:
loans and
advances to
customers(4) 480 42 nm(7) nm(7) 342 40 40 480 42 nm(7) nm(7)
Total
liabilities 981 794 24 25 770 27 28 981 794 24 25
Of which:
customer
accounts(4) 886 721 23 24 689 29 29 886 721 23 24
Risk-weighted
assets 1,158 608 90 nm(7) 1,043 11 nm(7) 1,158 608 90 nm(7)
Underlying
return
on
risk-weighted
assets
(%)(5) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7)
Underlying
return
on tangible
equity
(%)(5) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7)
Cost to income
ratio
(%)(6) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7)
--------------- ---------- ---------- --------- ----------- ---------- --------- ----------- ---------- ---------- --------- -----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior period has been restated
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 loss before tax of $85 million was up $23 million,
driven mainly by higher expenses as we continue to invest in new
and existing Ventures
-- Loans and advances to customers increased almost 40 per cent
since 30 June 2022, due to customer growth, higher utilisation and
additional credit product being launched
-- Risk weighted assets of $1,158 million have increased $550
million mainly due to continued investment in new and existing
Ventures and minority interests
Page 16
Supplementary financial information continued
Central & other items (segment)(1)
Constant Constant Constant
currency currency currency
3Q'22 3Q'21 Change(3) change(2,3) 2Q'22 Change(3) change(2,3) YTD'22 YTD'21 Change(3) change(2,3)
$million $million % % $million % % $million $million % %
--------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Operating
income (37) 108 (134) (118) 169 (122) (111) 410 466 (12) 2
Treasury (4) 149 (103) (98) 205 (102) (99) 518 543 (5) -
Other (33) (41) 20 52 (36) 8 42 (108) (77) (40) 8
Operating
expenses (190) (165) (15) (58) (115) (65) (92) (526) (532) 1 (22)
Operating loss
before
impairment
losses and
taxation (227) (57) nm(7) nm(7) 54 nm(7) nm(7) (116) (66) (76) nm(7)
Credit
impairment (54) (9) nm(7) nm(7) 27 nm(7) nm(7) (43) (5) nm(7) nm(7)
Other
impairment (1) (5) 80 100 - nm(7) nm(7) (2) (5) 60 60
Profit from
associates
and joint
ventures 20 47 (57) (62) 94 (79) (81) 180 183 (2) (1)
--------------- ---------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- --------- -----------
Underlying
profit/(loss)
before
taxation (262) (24) nm(7) nm(7) 175 nm(7) nm(7) 19 107 (82) (94)
Restructuring (5) (57) 91 93 (20) 75 79 (24) (120) 80 81
Other items - - nm(7) nm(7) - nm(7) nm(7) - - nm(7) nm(7)
--------------- ---------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- --------- -----------
Statutory loss
before
taxation (267) (81) nm(7) nm(7) 155 nm(7) nm(7) (5) (13) 62 (182)
--------------- ---------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- --------- -----------
Total assets 279,178 287,449 (3) 3 272,084 3 5 279,178 287,449 (3) 3
Of which:
loans
and advances
to
customers(4) 35,388 31,272 13 23 29,418 20 26 35,388 31,272 13 23
Total
liabilities 102,895 115,119 (11) (9) 105,418 (2) (1) 102,895 115,119 (11) (9)
Of which:
customer
accounts(4) 6,517 16,477 (60) (59) 9,058 (28) (27) 6,517 16,477 (60) (59)
Risk-weighted
assets 50,433 52,449 (4) nm(7) 47,344 7 nm(7) 50,433 52,449 (4) nm(7)
Underlying
return
on
risk-weighted
assets (%)(5) (2.0) (0.2) (180)bps nm(7) 1.4 (340)bps nm(7) - 0.3 (30)bps nm(7)
Underlying
return
on tangible
equity
(%)(5) (15.6) (5.6) (1,000)bps nm(7) (0.3) (1,530)bps nm(7) (5.2) (3.7) (150)bps nm(7)
Cost to income
ratio (%)
(excluding
UK bank
levy)(6) nm(7) 152.8 nm(7) nm(7) 71.0 nm(7) nm(7) 129.5 112.9 (16.6) (24.4)
--------------- ---------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- --------- -----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior period has been restated
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 loss before tax of $262 million compared to 3Q'21
loss of $24 million primarily due to lower net interest income from
hedges as rates rise, lower profit share from China Bohai Bank.
Expenses increased 15 per cent while credit impairments were $45
million higher
-- Underlying operating income from Treasury was down to $4
million, $153 million worse than prior year primarily due to lower
net interest income from hedges
-- Treasury risk-weighted assets down $6 billion since 31
December 2021, due to management actions, mostly portfolio
optimisation and the purchase of credit insurance for higher risk
weighted central bank cash balances
Page 17
Supplementary financial information continued
Underlying performance by region
3Q'22
-------------------------------------- ------------------------------------------------------
Africa Central
& Europe &
Middle & other
Asia East Americas items Total
$million $million $million $million $million
-------------------------------------- --------- ---------- --------- --------- ---------
Operating income 2,984 652 632 50 4,318
Operating expenses (1,715) (423) (374) (147) (2,659)
-------------------------------------- --------- ---------- --------- --------- ---------
Operating profit/(loss) before
impairment losses and taxation 1,269 229 258 (97) 1,659
Credit impairment (193) (68) 34 - (227)
Other impairment (33) 2 1 (2) (32)
Profit from associates and joint
ventures 20 - - (4) 16
-------------------------------------- --------- ---------- --------- --------- ---------
Underlying profit/(loss) before
taxation 1,063 163 293 (103) 1,416
Restructuring (18) (1) (2) (4) (25)
Other items - - - - -
-------------------------------------- --------- ---------- --------- --------- ---------
Statutory profit/(loss) before
taxation 1,045 162 291 (107) 1,391
-------------------------------------- --------- ---------- --------- --------- ---------
Total assets 497,193 54,724 303,617 8,901 864,435
Of which: loans and advances to
customers(1) 258,911 24,705 69,995 - 353,611
--------- ---------- --------- --------- ---------
loans and advances to customers 242,700 23,644 32,046 - 298,390
loans held at fair value through
profit or loss 16,211 1,061 37,949 - 55,221
--------- ---------- --------- --------- ---------
Total liabilities 452,959 41,116 249,771 70,586 814,432
Of which: customer accounts(1) 334,954 31,697 145,315 - 511,966
Risk-weighted assets 156,553 42,746 50,779 2,215 252,293
Underlying return on risk-weighted
assets (%)(2) 2.7 1.5 2.3 nm(4) 2.2
Underlying return on tangible
equity (%)(2) 14.2 7.8 12.1 nm(4) 10.1
Cost to income ratio (%)(3) 57.5 64.9 59.2 nm(4) 61.6
-------------------------------------- --------- ---------- --------- --------- ---------
3Q'21
-------------------------------------- ------------------------------------------------------
Africa Central
& Europe &
Middle & other
Asia East Americas items Total
$million $million $million $million $million
-------------------------------------- --------- ---------- --------- --------- ---------
Operating income 2,629 657 514 (35) 3,765
Operating expenses (1,661) (401) (350) (182) (2,594)
-------------------------------------- --------- ---------- --------- --------- ---------
Operating profit/(loss) before
impairment losses and taxation 968 256 164 (217) 1,171
Credit impairment (84) (33) 11 (1) (107)
Other impairment (2) (1) (14) (18) (35)
Profit from associates and joint
ventures 45 - - 1 46
-------------------------------------- --------- ---------- --------- --------- ---------
Underlying profit/(loss) before
taxation 927 222 161 (235) 1,075
Restructuring (36) (7) (27) (29) (99)
Other items - - - 20 20
-------------------------------------- --------- ---------- --------- --------- ---------
Statutory profit/(loss) before
taxation 891 215 134 (244) 996
-------------------------------------- --------- ---------- --------- --------- ---------
Total assets 475,407 56,609 275,427 9,659 817,102
Of which: loans and advances to
customers(1) 263,296 28,415 72,057 - 363,768
--------- ---------- --------- --------- ---------
loans and advances to customers 246,226 25,914 30,353 - 302,493
loans held at fair value through
profit or loss 17,070 2,501 41,704 - 61,275
--------- ---------- --------- --------- ---------
Total liabilities 428,911 40,276 228,363 66,217 763,767
Of which: customer accounts(1) 343,425 33,307 136,260 - 512,992
Risk-weighted assets 172,205 49,040 48,476 (2,166) 267,555
Underlying return on risk-weighted
assets (%)(2) 2.1 1.7 1.3 nm(4) 1.6
Underlying return on tangible
equity (%)(2) 11.1 9.1 6.7 nm(4) 6.3
Cost to income ratio (%)(3) 63.2 61.0 68.1 nm(4) 68.9
-------------------------------------- --------- ---------- --------- --------- ---------
1 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
2 Change is the basis points (bps) difference between the two
periods rather than the percentage change
3 Change is the percentage points difference between the two
periods rather than the percentage change
4 Not meaningful
Page 18
Supplementary financial information continued
Asia(1)
Constant Constant
currency currency Constant
change change currency
(1, (1, change
3Q'22 3Q'21 Change(2) 2) 2Q'22 Change2 2) YTD'22 YTD'21 Change(2) (1)
$million $million % % $million % % $million $million % %
--------------- ---------- ---------- --------- ---------- ------- ---------- ---------- ---------
Operating
income 2,984 2,629 14 19 2,725 10 12 8,506 8,092 5 9
Operating
expenses (1,715) (1,661) (3) (9) (1,746) 2 (1) (5,132) (4,959) (3) (7)
--------------- ---------- ---------- --------- -------- ---------- ------- -------- ---------- ---------- --------- --------
Operating
profit before
impairment
losses
and taxation 1,269 968 31 38 979 30 33 3,374 3,133 8 11
Credit
impairment (193) (84) (130) (168) (113) (71) (57) (591) (131) nm(6) nm(6)
Other
impairment (33) (2) nm(6) nm(6) (2) nm(6) nm(6) (35) (17) (106) (94)
Profit from
associates
and joint
ventures 20 45 (56) (59) 91 (78) (79) 177 181 (2) (2)
--------------- ---------- ---------- --------- -------- ---------- ------- -------- ---------- ---------- --------- --------
Underlying
profit
before
taxation 1,063 927 15 19 955 11 15 2,925 3,166 (8) (5)
Restructuring (18) (36) 50 45 (10) (80) (64) (37) (63) 41 39
Other items - - nm(6) nm(6) - nm(6) nm(6) - - nm(6) nm(6)
--------------- ---------- ---------- --------- -------- ---------- ------- -------- ---------- ---------- --------- --------
Statutory
profit before
taxation 1,045 891 17 21 945 11 15 2,888 3,103 (7) (4)
--------------- ---------- ---------- --------- -------- ---------- ------- -------- ---------- ---------- --------- --------
Total assets 497,193 475,407 5 12 477,485 4 7 497,193 475,407 5 12
Of which:
loans and
advances to
customers(3) 258,911 263,296 (2) 6 259,484 - 3 258,911 263,296 (2) 6
Total
liabilities 452,959 428,911 6 12 431,424 5 8 452,959 428,911 6 12
Of which:
customer
accounts(3) 334,954 343,425 (2) 3 332,705 1 3 334,954 343,425 (2) 3
Risk-weighted
assets 156,553 172,205 (9) nm(6) 160,345 (2) nm(6) 156,553 172,205 (9) nm(6)
Underlying
return
on
risk-weighted
assets
(%)(4) 2.7 2.1 60bps nm(6) 2.3 40bps nm(6) 2.4 2.4 - nm(6)
Underlying
return
on tangible
equity
(%)(4) 14.2 11.1 310bps nm(6) 12.3 190bps nm(6) 12.6 12.6 - nm(6)
Cost to income
ratio
(%)(5) 57.5 63.2 5.7 5.7 64.1 6.6 6.6 60.3 61.3 1.0 1.0
--------------- ---------- ---------- --------- -------- ---------- ------- -------- ---------- ---------- --------- --------
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 of $1,063 million was up 15 per
cent, primarily from higher income partly offset by higher credit
impairment from charges on China Commercial Real Estate exposures
and the sovereign ratings downgrade of Sri Lanka
-- Underlying operating income of $2,984 million was up 14 per
cent (up 19 per cent on a constant currency), mainly driven by a
strong Financial Markets momentum and Cash Management and Retail
Deposits, both benefiting from the hike in interest rates. This was
partially offset by lower Lending and Wealth Management income as
market conditions reduced transaction volumes, as well as the
impact of COVID-19 restrictions impacting in our key markets, Hong
Kong and China
-- Loans and advances to customers and customer accounts were
down 2 per cent (up 6 per cent on a constant currency) since 31
December 2021
-- Risk-weighted assets were down $14 billion since 31 December
2021 as we continue to focus on RWA optimisation
-- RoTE increased from 11.1 per cent to 14.2 per cent
Page 19
Supplementary financial information continued
Africa & Middle East
Constant Constant
currency currency Constant
change change currency
(1, (1, change
3Q'22 3Q'21 Change(2) 2) 2Q'22 Change(2) 2) YTD'22 YTD'21 Change(2) (1)
$million $million % % $million % % $million $million % %
--------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Operating
income 652 657 (1) 8 632 3 10 1,943 1,907 2 7
Operating
expenses (423) (401) (5) (10) (405) (4) (9) (1,231) (1,216) (1) (5)
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Operating
profit before
impairment
losses
and taxation 229 256 (11) 5 227 1 12 712 691 3 11
Credit
impairment (68) (33) (106) (127) 53 nm(6) nm(6) 31 7 nm(6) 182
Other
impairment 2 (1) nm(6) nm(6) (1) nm(6) nm(6) 1 (1) 200 200
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Underlying
profit
before
taxation 163 222 (27) (11) 279 (42) (34) 744 697 7 14
Restructuring (1) (7) 86 100 (8) 88 100 (8) (10) 20 20
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Statutory
profit before
taxation 162 215 (25) (7) 271 (40) (31) 736 687 7 15
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Total assets 54,724 56,609 (3) 4 57,859 (5) (2) 54,724 56,609 (3) 4
Of which:
loans and
advances to
customers(3) 24,705 28,415 (13) (8) 28,003 (12) (9) 24,705 28,415 (13) (8)
Total
liabilities 41,116 40,276 2 9 42,672 (4) (1) 41,116 40,276 2 9
Of which:
customer
accounts(3) 31,697 33,307 (5) 2 33,480 (5) (3) 31,697 33,307 (5) 2
Risk-weighted
assets 42,746 49,040 (13) nm(6) 43,613 (2) nm(6) 42,746 49,040 (13) nm(6)
Underlying
return
on
risk-weighted
assets
(%)(4) 1.5 1.7 (20)bps nm(6) 2.5 (100)bps nm(6) 2.2 1.8 40bps nm(6)
Underlying
return
on tangible
equity
(%)(4) 7.8 9.1 (130)bps nm(6) 13.0 (520)bps nm(6) 11.4 9.5 190bps nm(6)
Cost to income
ratio
(%)(5) 64.9 61.0 (3.9) (1.1) 64.1 (0.8) 0.5 63.4 63.8 0.4 1.1
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates
between the two periods
2 Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL and 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 of $162 million was 25 per cent
lower (7 per cent lower on constant currency basis), primarily due
to higher provisions related to country downgrades
-- Underlying operating income of $652 million was 1 per cent
lower (up 8 per cent on a constant currency basis); Broad-based
growth across products, led by Transaction Banking, offset by
grow-over impact of a IFRS9 accounting adjustment last year and
impact of currency devaluation
-- Loans and advances to customers were down 10 per cent (6 per
cent down on constant currency basis) and customer accounts were
down 9 per cent (3 per cent down on constant currency basis) since
31 December 2021
-- Risk-weighted assets were down $6 billion since 31 December 2021
-- RoTE decreased from 9.1 per cent to 7.8 per cent; Q3 YTD RoTE at 11.4%
Page 20
Supplementary financial information continued
Europe & Americas
Constant Constant
currency currency Constant
change change currency
(1, (1, change
3Q'22 3Q'21 Change(2) 2) 2Q'22 Change(2) 2) YTD'22 YTD'21 Change(2) (1)
$million $million % % $million % % $million $million % %
--------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Operating
income 632 514 23 27 588 7 9 2,077 1,507 38 41
Operating
expenses (374) (350) (7) (10) (390) 4 3 (1,145) (1,075) (7) (10)
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Operating
profit before
impairment
losses
and taxation 258 164 57 65 198 30 31 932 432 116 118
Credit
impairment 34 11 nm(6) nm(6) (7) nm(6) nm(6) 63 73 (14) (13)
Other
impairment 1 (14) 107 108 1 - - 2 (7) 129 143
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Underlying
profit
before
taxation 293 161 82 92 192 53 54 997 498 100 103
Restructuring (2) (27) 93 93 (9) 78 75 (8) (47) 83 83
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Statutory
profit before
taxation 291 134 117 133 183 59 59 989 451 119 123
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Total assets 303,617 275,427 10 11 291,264 4 5 303,617 275,427 10 11
Of which:
loans and
advances to
customers(3) 69,995 72,057 (3) (1) 66,987 4 5 69,995 72,057 (3) (1)
Total
liabilities 249,771 228,363 9 11 243,877 2 3 249,771 228,363 9 11
Of which:
customer
accounts(3) 145,315 136,260 7 8 140,826 3 4 145,315 136,260 7 8
Risk-weighted
assets 50,779 48,476 5 nm(6) 50,038 1 nm(6) 50,779 48,476 5 nm(6)
Underlying
return
on
risk-weighted
assets
(%)(4) 2.3 1.3 100bps nm(6) 1.5 80bps nm(6) 2.6 1.4 120bps nm(6)
Underlying
return
on tangible
equity
(%)(4) 12.1 6.7 540bps nm(6) 8.0 410bps nm(6) 13.7 7.0 670bps nm(6)
Cost to income
ratio
(%)(5) 59.2 68.1 8.9 9.2 66.3 7.1 6.9 55.1 71.3 16.2 15.8
--------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
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 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 of $293 million was 82 per cent
higher, driven by increased income slightly offset by higher
expenses
-- Underlying operating income of $632 million was up 23 per
cent with growth driven by Financial Markets
-- RoTE double digit at 12.1 per cent from 6.7 per cent
Page 21
Supplementary financial information continued
Central & other items (region)
Constant Constant Constant
currency currency currency
change change change
(1, (1, (1,
3Q'22 3Q'21 Change(2) 2) 2Q'22 Change(2) 2) YTD'22 YTD'21 Change(2) 2)
$million $million % % $million % % $million $million % %
-------------- ---------- ---------- --------- ---------- --------- ---------- ---------- ---------
Operating
income 50 (35) nm(5) nm(5) (19) nm(5) nm(5) (8) (123) 93 94
Operating
expenses (147) (182) 19 (11) (90) (63) (99) (418) (436) 4 (21)
-------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Operating loss
before
impairment
losses
and taxation (97) (217) 55 35 (109) 11 (16) (426) (559) 24 12
Credit
impairment - (1) 100 nm(5) - nm(5) nm(5) 3 (9) 133 138
Other
impairment (2) (18) 89 94 1 nm(5) (200) (2) (35) 94 91
Profit from
associates
and joint
ventures (4) 1 nm(5) nm(5) (1) nm(5) nm(5) (8) (1) nm(5) nm(5)
-------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Underlying
loss before
taxation (103) (235) 56 38 (109) 6 (21) (433) (604) 28 18
Restructuring (4) (29) 86 87 (10) 60 56 (17) (102) 83 85
Other items - 20 (100) (100) - nm(5) nm(5) - 20 (100) (100)
-------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Statutory loss
before
taxation (107) (244) 56 39 (119) 10 (15) (450) (686) 34 26
-------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
Total assets 8,901 9,659 (8) (7) 9,309 (4) (4) 8,901 9,659 (8) (7)
Total
liabilities 70,586 66,217 7 7 68,252 3 3 70,586 66,217 7 7
Risk-weighted
assets 2,215 (2,166) nm(5) nm(5) 1,086 104 104 2,215 (2,166) nm(5) nm(5)
Underlying
return
on
risk-weighted
assets
(%)(3) nm(5) nm(5) nm(5) - nm(5) nm(5) - nm(5) nm(5) nm(5) -
Underlying
return
on tangible
equity
(%)(3) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5)
Cost to income
ratio
(%)
(excluding UK
bank levy)(4) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) nm(5) -
-------------- ---------- ---------- --------- -------- ---------- --------- -------- ---------- ---------- --------- --------
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 basis points (bps) difference between the two
periods rather than the percentage change
4 Change is the percentage points difference between the two
periods rather than the percentage change
5 Not meaningful
Performance highlights
-- Underlying loss before tax of $103 million, 56 per cent
better than prior year primarily from higher returns paid to
Treasury on the equity provided to the regions in a higher interest
rate environment
Page 22
Supplementary financial information continued
Underlying performance by key market
3Q'22
--------------- -----------------------------------------------------------------------------------------------------
Hong
Kong Korea China Taiwan Singapore India Indonesia UAE UK US
$million $million $million $million $million $million $million $million $million $million
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Operating
income 1,020 292 315 120 545 296 48 158 273 266
Operating
expenses (514) (179) (213) (82) (263) (188) (41) (90) (176) (146)
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Operating
profit
before
impairment
losses and
taxation 506 113 102 38 282 108 7 68 97 120
Credit
impairment (145) (18) (53) (2) 65 (11) 3 25 10 12
Other
impairment (37) - (1) - (2) (2) - (1) 11 (2)
Profit from
associates
and joint
ventures - - 19 - - - - - - -
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Underlying
profit before
taxation 324 95 67 36 345 95 10 92 118 130
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Total assets
employed 177,682 65,950 40,772 24,660 98,714 31,817 5,868 20,160 220,271 68,973
Of which:
loans
and advances
to
customers(1) 86,348 39,854 15,211 10,938 60,136 15,029 2,185 8,186 46,182 19,962
Total
liabilities
employed 167,509 56,038 36,599 23,529 109,115 23,998 4,702 16,035 162,730 72,122
Of which:
customer
accounts(1) 132,780 39,297 26,339 19,507 77,179 14,577 3,219 12,569 105,413 31,136
Underlying
return on
tangible
equity (%) 15.0 12.7 6.9 16.1 29.4 9.8 6.1 17.7 7.9 16.6
Cost to income
ratio (%) 50.4 61.3 67.6 68.3 48.3 63.5 85.4 57.0 64.5 54.9
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
2Q'22
--------------- -----------------------------------------------------------------------------------------------------
Hong
Kong Korea China Taiwan Singapore India Indonesia UAE UK US
$million $million $million $million $million $million $million $million $million $million
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Operating
income 883 285 306 110 419 325 48 139 253 263
Operating
expenses (510) (189) (215) (84) (274) (191) (44) (87) (188) (147)
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Operating
profit
before
impairment
losses and
taxation 373 96 91 26 145 134 4 52 65 116
Credit
impairment (98) (8) (51) 1 10 (5) (1) 46 8 8
Other
impairment (1) - (1) - - (1) - - 13 -
Profit from
associates
and joint
ventures - - 91 - - - - - - -
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Underlying
profit before
taxation 274 88 130 27 155 128 3 98 86 124
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Total assets
employed 170,036 65,985 38,548 22,780 95,651 30,613 5,492 20,929 213,255 61,700
Of which:
loans
and advances
to
customers(1) 84,187 43,499 16,688 11,227 58,445 16,624 1,938 9,351 43,445 19,179
Total
liabilities
employed 161,158 56,681 33,636 21,889 99,231 22,862 4,346 16,472 150,249 77,142
Of which:
customer
accounts(1) 133,000 43,900 24,159 18,915 71,765 14,621 2,815 12,330 95,933 35,475
Underlying
return on
tangible
equity (%) 12.7 11.6 12.4 11.6 13.2 12.6 2.1 17.4 5.6 16.9
Cost to income
ratio (%) 57.8 66.3 70.3 76.4 65.4 58.8 91.7 62.6 74.3 55.9
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Page 23
Supplementary financial information continued
3Q'21
--------------- -----------------------------------------------------------------------------------------------------
Hong
Kong Korea China Taiwan Singapore India Indonesia UAE UK US
$million $million $million $million $million $million $million $million $million $million
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Operating
income 846 270 271 126 435 392 51 144 190 214
Operating
expenses (507) (173) (184) (91) (264) (186) (44) (90) (163) (126)
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Operating
profit
before
impairment
losses and
taxation 339 97 87 35 171 206 7 54 27 88
Credit
impairment (4) (15) (4) (2) 21 (20) (1) 1 11 3
Other
impairment - - - - (1) - - - 22 -
Profit from
associates
and joint
ventures - - 46 - - - - - (1) -
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Underlying
profit before
taxation 335 82 129 33 191 186 6 55 59 91
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
Total assets
employed 177,271 65,976 36,182 23,634 92,456 29,200 4,947 18,896 185,498 75,029
Of which:
loans
and advances
to
customers(1) 88,452 45,993 17,698 11,673 57,575 16,234 2,038 9,373 49,901 17,478
Total
liabilities
employed 167,434 57,062 33,501 21,258 90,726 21,144 3,794 14,462 138,547 76,600
Of which:
customer
accounts(1) 138,644 44,687 25,566 19,918 69,508 15,597 2,583 11,542 84,562 43,502
Underlying
return on
tangible
equity (%) 15.1 9.3 12.2 12.9 14.4 15.0 3.7 9.4 3.8 12.8
Cost to income
ratio (%) 59.9 64.1 67.9 72.2 60.7 47.4 86.3 62.5 85.8 58.9
--------------- -------- -------- -------- -------- --------- -------- --------- -------- -------- ---------
1 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
Quarterly underlying operating income by product
3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20
$million $million $million $million $million $million $million $million
---------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Transaction Banking 1,082 835 740 730 734 709 713 707
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Trade & Working
capital
(1, 2) 344 343 362 348 389 363 347 304
Cash Management 738 492 378 382 345 346 366 403
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Financial Markets 1,540 1,373 1,723 1,012 1,311 1,268 1,308 949
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Macro Trading 734 664 940 433 540 571 672 435
Credit Markets(2) 440 374 460 361 516 484 429 404
Credit Trading 156 87 110 60 144 102 131 119
Financing
Solutions &
Issuance(2) 284 287 350 301 372 382 298 285
Structured Finance 116 102 94 104 159 128 100 102
Financing &
Securities
Services(2) 195 198 144 97 97 86 107 77
DVA 55 35 85 17 (1) (1) - (69)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Lending & Portfolio
Management(1,2) 166 136 146 184 214 188 173 168
Wealth Management 455 458 530 466 559 554 646 442
Retail Products 1,109 955 849 835 828 846 849 848
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
CCPL & other
unsecured
lending 301 313 305 316 316 320 320 303
Deposits 625 363 248 213 205 209 233 271
Mortgage & Auto 141 235 247 261 260 268 247 234
Other Retail
Products 42 44 49 45 47 49 49 40
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Treasury (4) 205 317 155 149 137 257 92
Other(2) (30) (36) (31) (52) (30) (13) (17) (7)
---------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total underlying
operating
income 4,318 3,926 4,274 3,330 3,765 3,689 3,929 3,199
---------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1 Following a reorganisation, there has been a reclassification
of balances from Lending & Portfolio Management into Trade
& Working capital including prior period numbers. Prior periods
have been re-presented and there is no change in the total
income
2 Income related to Group Special Asset Management, the Group's
specialist recovery unit previously reported in Other products has
been allocated to the relevant products. Prior periods have been
re-presented and there is no change in total income.
Page 24
Supplementary financial information continued
Earnings per ordinary share
3Q'22 3Q'21 Change 2Q'22 Change YTD'22 YTD'21 Change
$million $million % $million % $million $million %
------------------------------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) for the
period attributable to
equity holders 1,078 767 41 909 19 3,166 2,695 17
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Non-controlling interest 9 (4) nm(1) 4 125 10 (18) nm(1)
Dividend payable on preference
shares and AT1 classified
as equity (123) (119) (3) (94) (31) (339) (315) (8)
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Profit/(loss) for the
period attributable to
ordinary shareholders 964 644 50 819 18 2,837 2,362 20
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Items normalised:
Restructuring 25 99 (75) 37 (32) 70 222 (68)
Net (gains) / losses on
sale of Businesses - (20) nm(1) - nm(1) - (20) nm(1)
Tax on normalised items (13) (7) (86) (5) (160) (21) (22) 5
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Underlying profit/(loss) 976 716 36 851 15 2,886 2,542 14
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Basic - Weighted average
number of shares (millions) 2,949 3,105 nm(1) 3,014 nm(1) 2,992 3,124 nm(1)
Diluted - Weighted average
number of shares (millions) 3,011 3,152 nm(1) 3,069 nm(1) 3,050 3,174 nm(1)
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Basic earnings per ordinary
share (cents)(2) 32.7 20.7 12 27.2 5.5 94.8 75.6 19.2
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Diluted earnings per ordinary
share (cents)(2) 32.0 20.4 11.6 26.7 5.3 93.0 74.4 18.6
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Underlying basic earnings
per ordinary share (cents)(2) 33.1 23.1 10 28.2 4.9 96.5 81.4 15.1
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
Underlying diluted earnings
per ordinary share (cents)(2) 32.4 22.7 9.7 27.7 4.7 94.6 80.1 14.5
------------------------------- ---------- ---------- ------ ---------- ------ ---------- ---------- ------
1 Not meaningful
2 Change is the percentage points difference between the two
periods rather than the percentage change
Page 25
Supplementary financial information continued
Return on Tangible Equity
3Q'22 Change 2Q'22 Change YTD'22 Change
3Q'21(1) YTD'21(1)
$million $million % $million % $million $million %
------------------------------- ---------- --------- ---------- ---------- ---------
Average parent company
Shareholders' Equity 43,592 46,709 (7) 44,617 (2) 44,600 46,399 (4)
Less Preference share
premium (1,494) (1,494) - (1,494) - (1,494) (1,494) -
Less Average intangible
assets (5,529) (5,267) (5) (5,519) - (5,511) (5,155) (7)
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Average Ordinary Shareholders'
Tangible Equity 36,569 39,948 (8) 37,604 (3) 37,595 39,750 (5)
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Profit/(loss) for the
period attributable to
equity holders 1,078 767 41 909 19 3,166 2,695 17
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Non-controlling interests 9 (4) nm(2) 4 125 10 (18) nm(2)
Dividend payable on preference
shares and AT1 classified
as equity (123) (119) (3) (94) (31) (339) (315) (8)
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Profit/(loss) for the
period attributable to
ordinary shareholders 964 644 50 819 18 2,837 2,362 20
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Items normalised:
Restructuring 25 99 (75) 37 (32) 70 222 (68)
Net gain on sale of businesses - (20) nm(2) - nm(2) - (20) nm(2)
Ventures FVOCI unrealised
gains/(losses) net of
tax (49) (78) 37 (15) nm(2) (57) 38 nm(2)
Tax on normalised items (13) (7) (86) (5) (160) (21) (22) 5
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Underlying profit for
the period attributable
to ordinary shareholders(3) 927 638 45 836 11 2,829 2,580 10
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Underlying Return on Tangible
Equity 10.1% 6.3% 380bps 8.9% 120bps 10.1% 8.7% 140bps
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
Statutory Return on Tangible
Equity 10.5% 6.4% 410bps 8.7% 180bps 10.1% 7.9% 220bps
------------------------------- ---------- --------- ------ ---------- ------ ---------- --------- ------
1 Comparatives have been restated to include unrealised gains/(losses) from Ventures FVOCI
2 Not meaningful
3 Includes unrealised gains/(losses) from Ventures FVOCI
Net Tangible Asset Value per Share
30.09.22 30.09.21 Change 30.06.22 Change 31.12.21 Change
$million $million % $million % $million %
------------------------------------ ---------- ---------- ---------- ----------
Parent company shareholders'
equity 43,127 46,666 (8) 44,055 (2) 46,011 (6)
Less Preference share premium (1,494) (1,494) - (1,494) - (1,494) -
Less Intangible assets (5,520) (5,347) (3) (5,537) - (5,471) (1)
------------------------------------ ---------- ---------- ------ ---------- ------ ---------- ------
Net shareholders tangible equity 36,113 39,825 (9) 37,024 (2) 39,046 (8)
------------------------------------ ---------- ---------- ------ ---------- ------ ---------- ------
Ordinary shares in issue, excluding
own shares (millions) 2,905 3,078 (6) 2,967 (2) 3,057 (5)
------------------------------------ ---------- ---------- ------ ---------- ------ ---------- ------
Net Tangible Asset Value per
share (cents)(1) 1,243 1,294 (51) 1,248 (5) 1,277 (34)
------------------------------------ ---------- ---------- ------ ---------- ------ ---------- ------
1 Change is cents difference between the two periods rather than the percentage change
Page 26
Underlying versus statutory results reconciliations
Reconciliations between underlying and statutory results are set
out in the tables below:
Operating income by client segment
3Q'22
---------------------------- ------------------------------------------------------------
Consumer,
Corporate, Private Central
Commercial & &
& Institutional Business other
Banking Banking Ventures items Total
$million $million $million $million $million
---------------------------- ---------------- --------- --------- --------- ---------
Underlying operating income 2,745 1,600 10 (37) 4,318
Restructuring 10 - - 1 11
Other items - - - - -
---------------------------- ---------------- --------- --------- --------- ---------
Statutory operating income 2,755 1,600 10 (36) 4,329
---------------------------- ---------------- --------- --------- --------- ---------
3Q'21 (Restated)(1)
---------------------------- -------------------------------------------------------------------
Consumer,
Private
&
Central
Business &
Corporate,
Commercial
& Institutional other
Banking(1) Banking(1) Ventures(1) items(1) Total
$million $million $million $million $million
---------------------------- ---------------- ------------ ----------- ---------- ----------
Underlying operating income 2,226 1,431 - 108 3,765
Restructuring (12) - - (9) (21)
Other items - - 20 - 20
---------------------------- ---------------- ------------ ----------- ---------- ----------
Statutory operating income 2,214 1,431 20 99 3,764
---------------------------- ---------------- ------------ ----------- ---------- ----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022 Prior periods have been restated
Operating income by region
3Q'22
---------------------------- ------------------------------------------------------
Africa Central
& Europe &
Middle & other
Asia East Americas items Total
$million $million $million $million $million
---------------------------- --------- ---------- --------- --------- ---------
Underlying operating income 2,984 652 632 50 4,318
Restructuring 5 - - 6 11
Other items - - - - -
---------------------------- --------- ---------- --------- --------- ---------
Statutory operating income 2,989 652 632 56 4,329
---------------------------- --------- ---------- --------- --------- ---------
3Q'21
---------------------------- ------------------------------------------------------
Africa Central
& Europe &
Middle & other
Asia East Americas items Total
$million $million $million $million $million
---------------------------- --------- ---------- --------- --------- ---------
Underlying operating income 2,629 657 514 (35) 3,765
Restructuring - - - (21) (21)
Other items - - - 20 20
---------------------------- --------- ---------- --------- --------- ---------
Statutory operating income 2,629 657 514 (36) 3,764
---------------------------- --------- ---------- --------- --------- ---------
Page 27
Underlying versus statutory results reconciliations
continued
Profit before taxation (PBT)
3Q'22
------------------------------------------ ----------------------------------------------------
Net gain
on businesses
disposed/
held for
Underlying Restructuring sale Statutory
$million $million $million $million
------------------------------------------ ---------- ------------- -------------- ---------
Operating income 4,318 11 - 4,329
Operating expenses (2,659) (37) - (2,696)
------------------------------------------ ---------- ------------- -------------- ---------
Operating profit/(loss) before impairment
losses and taxation 1,659 (26) - 1,633
Credit impairment (227) - - (227)
Other impairment (32) 1 - (31)
Profit from associates and joint ventures 16 - - 16
------------------------------------------ ---------- ------------- -------------- ---------
Profit/(loss) before taxation 1,416 (25) - 1,391
------------------------------------------ ---------- ------------- -------------- ---------
3Q'21
------------------------------------------ ----------------------------------------------------
Net gain
on businesses
disposed/
held for
Underlying Restructuring sale Statutory
$million $million $million $million
------------------------------------------ ---------- ------------- -------------- ---------
Operating income 3,765 (21) 20 3,764
Operating expenses (2,594) (53) - (2,647)
------------------------------------------ ---------- ------------- -------------- ---------
Operating profit/(loss) before impairment
losses and taxation 1,171 (74) 20 1,117
Credit impairment (107) (1) - (108)
Other impairment (35) (24) - (59)
Profit from associates and joint ventures 46 - - 46
------------------------------------------ ---------- ------------- -------------- ---------
Profit/(loss) before taxation 1,075 (99) 20 996
------------------------------------------ ---------- ------------- -------------- ---------
Profit before taxation (PBT) by client segment
3Q'22
--------------------------------- ------------------------------------------------------------
Consumer,
Corporate, Private Central
Commercial & &
& Institutional Business other
Banking Banking Ventures items Total
$million $million $million $million $million
--------------------------------- ---------------- --------- --------- --------- ---------
Operating income 2,745 1,600 10 (37) 4,318
---------------- --------- --------- --------- ---------
External 2,405 1,287 10 616 4,318
Inter-segment 340 313 - (653) -
---------------- --------- --------- --------- ---------
Operating expenses (1,347) (1,035) (87) (190) (2,659)
--------------------------------- ---------------- --------- --------- --------- ---------
Operating profit/(loss) before
impairment losses and taxation 1,398 565 (77) (227) 1,659
Credit impairment (82) (87) (4) (54) (227)
Other impairment (31) - - (1) (32)
Profit from associates and joint
ventures - - (4) 20 16
--------------------------------- ---------------- --------- --------- --------- ---------
Underlying profit/(loss) before
taxation 1,285 478 (85) (262) 1,416
Restructuring 2 (22) - (5) (25)
Other items - - - - -
--------------------------------- ---------------- --------- --------- --------- ---------
Statutory profit/(loss) before
taxation 1,287 456 (85) (267) 1,391
--------------------------------- ---------------- --------- --------- --------- ---------
Page 28
Underlying versus statutory results reconciliations
continued
3Q'21 (Restated)(1)
--------------------------------- ----------------------------------------------------------------
Consumer,
Corporate, Private Central
Commercial & &
& Institutional Business other
Banking(1) Banking(1) Ventures(1) items(1) Total
$million $million $million $million $million
--------------------------------- ---------------- ----------- ----------- --------- ---------
Operating income 2,226 1,431 - 108 3,765
---------------- ----------- ----------- --------- ---------
External 2,115 1,349 - 301 3,765
Inter-segment 111 82 - (193) -
---------------- ----------- ----------- --------- ---------
Operating expenses (1,304) (1,065) (60) (165) (2,594)
--------------------------------- ---------------- ----------- ----------- --------- ---------
Operating profit/(loss) before
impairment losses and taxation 922 366 (60) (57) 1,171
Credit impairment (24) (73) (1) (9) (107)
Other impairment (30) - - (5) (35)
Profit from associates and joint
ventures - - (1) 47 46
--------------------------------- ---------------- ----------- ----------- --------- ---------
Underlying profit/(loss) before
taxation 868 293 (62) (24) 1,075
Restructuring (32) (10) - (57) (99)
Other items - - 20 - 20
--------------------------------- ---------------- ----------- ----------- --------- ---------
Statutory profit/(loss) before
taxation 836 283 (42) (81) 996
--------------------------------- ---------------- ----------- ----------- --------- ---------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior periods have been restated
Profit before taxation (PBT) by region
3Q'22
--------------------------------- ------------------------------------------------------
Africa Central
& Europe &
Middle & other
Asia East Americas items Total
$million $million $million $million $million
--------------------------------- --------- ---------- --------- --------- ---------
Operating income 2,984 652 632 50 4,318
Operating expenses (1,715) (423) (374) (147) (2,659)
--------------------------------- --------- ---------- --------- --------- ---------
Operating profit/(loss) before
impairment losses and taxation 1,269 229 258 (97) 1,659
Credit impairment (193) (68) 34 - (227)
Other impairment (33) 2 1 (2) (32)
Profit from associates and joint
ventures 20 - - (4) 16
--------------------------------- --------- ---------- --------- --------- ---------
Underlying profit/(loss) before
taxation 1,063 163 293 (103) 1,416
Restructuring (18) (1) (2) (4) (25)
Other items - - - - -
--------------------------------- --------- ---------- --------- --------- ---------
Statutory profit/(loss) before
taxation 1,045 162 291 (107) 1,391
--------------------------------- --------- ---------- --------- --------- ---------
3Q'21
--------------------------------- ------------------------------------------------------
Africa Central
& Europe &
Middle & other
Asia East Americas items Total
$million $million $million $million $million
--------------------------------- --------- ---------- --------- --------- ---------
Operating income 2,629 657 514 (35) 3,765
Operating expenses (1,661) (401) (350) (182) (2,594)
--------------------------------- --------- ---------- --------- --------- ---------
Operating profit/(loss) before
impairment losses and taxation 968 256 164 (217) 1,171
Credit impairment (84) (33) 11 (1) (107)
Other impairment (2) (1) (14) (18) (35)
Profit from associates and joint
ventures 45 - - 1 46
--------------------------------- --------- ---------- --------- --------- ---------
Underlying profit/(loss) before
taxation 927 222 161 (235) 1,075
Restructuring (36) (7) (27) (29) (99)
Other items - - - 20 20
--------------------------------- --------- ---------- --------- --------- ---------
Statutory profit/(loss) before
taxation 891 215 134 (244) 996
--------------------------------- --------- ---------- --------- --------- ---------
Page 29
Underlying versus statutory results reconciliations
continued
Return on tangible equity (RoTE)
3Q'22
----------------------------------------- -----------------------------------------------------
Consumer,
Corporate, Private Central
Commercial & &
& Institutional Business Other
Banking Banking Ventures Items Total
% % % % %
----------------------------------------- ---------------- --------- -------- ------- -----
Underlying RoTE 17.5 19.2 nm (15.6) 10.1
Restructuring
Of which: Income 0.2 - - 0.1 0.1
Of which: Expenses (0.2) (1.2) - (0.2) (0.4)
Of which: Credit impairment - - - - -
Of which: Other impairment - - - (0.1) -
Of which: Profit from associates
and joint ventures - - - 0.01 -
Ventures FVOCI Unrealised gains/(losses)
net of taxes - - nm - 0.5
Tax on normalised items 0.1 0.3 - 0.5 0.2
----------------------------------------- ---------------- --------- -------- ------- -----
Statutory RoTE 17.6 18.3 nm (15.2) 10.5
----------------------------------------- ---------------- --------- -------- ------- -----
3Q'21 (Restated)(1)
----------------------------------------- ----------------------------------------------------------
Consumer,
Corporate, Private Central
Commercial & &
& Institutional Business Other
Banking(1) Banking(1) Ventures(1) Items Total
% % % % %
----------------------------------------- ---------------- ----------- ----------- ------- -----
Underlying RoTE 10.6 11.2 nm (5.6) 6.3
Restructuring
Of which: Income (0.2) - - (0.5) (0.2)
Of which: Expenses (0.4) (0.5) - (1.1) (0.5)
Of which: Credit impairment - - - - -
Of which: Other impairment - - - (1.4) (0.2)
Of which: Profit from associates
and joint ventures - - - - -
Ventures FVOCI Unrealised gains/(losses)
net of taxes - - nm - 0.8
Tax on normalised items 0.2 0.2 nm - -
----------------------------------------- ---------------- ----------- ----------- ------- -----
Statutory RoTE 10.2 10.7 nm (8.5) 6.4
----------------------------------------- ---------------- ----------- ----------- ------- -----
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior periods have been restated
Earnings per ordinary share (EPS)
3Q'22
---------------------------------- ----------------------------------------------------------------
Net gain Tax on
on sale normalised
Underlying Restructuring of business items Statutory
$ million $ million $ million $ million $ million
---------------------------------- ---------- ------------- ------------ ----------- ----------
Profit for the year attributable
to ordinary shareholders 976 (25) - 13 964
Basic - Weighted average number
of shares (millions) 2,949 - - - 2,949
Basic earnings per ordinary share
(cents) 33.1 - - - 32.7
---------------------------------- ---------- ------------- ------------ ----------- ----------
3Q'21
---------------------------------- ----------------------------------------------------------------
Net gain Tax on
on sale normalised
Underlying Restructuring of business items Statutory
$ million $ million $ million $ million $ million
---------------------------------- ---------- ------------- ------------ ----------- ----------
Profit for the year attributable
to ordinary shareholders 716 (99) 20 7 644
Basic - Weighted average number
of shares (millions) 3,105 - - - 3,105
Basic earnings per ordinary share
(cents) 23.1 - - - 20.7
---------------------------------- ---------- ------------- ------------ ----------- ----------
Page 30
Risk review
Credit quality by client segment
30.09.22
---------------- ----------------------------------------------------------------------------------------------------
Customers
--------------------------------------------------------------
Corporate, Consumer,
Commercial Private Central
& Institutional & Business & other Customer Undrawn Financial
Banks Banking Banking Ventures items Total commitments Guarantees
Amortised cost $million $million $million $million $million $million $million $million
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 1 42,846 127,006 124,804 476 32,591 284,877 159,356 51,280
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 30,815 88,408 120,676 473 32,591 242,148 141,763 36,981
- Satisfactory 12,031 38,598 4,128 3 - 42,729 17,593 14,299
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 2 431 9,478 1,972 10 - 11,460 4,359 2,718
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 204 1,339 1,386 6 - 2,731 1,340 315
- Satisfactory 193 7,033 272 2 - 7,307 2,479 1,989
- Higher risk 34 1,106 314 2 - 1,422 540 414
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Of which (stage
2):
- Less than 30
days past
due - 468 272 2 - 742 - -
- More than 30
days past
due 6 56 314 2 - 372 - -
Stage 3,
credit-impaired
financial
assets 60 5,565 1,396 1 239 7,201 - 585
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Gross balance(1) 43,337 142,049 128,172 487 32,830 303,538 163,715 54,583
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 1 (6) (145) (348) (4) - (497) (44) (20)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong (4) (50) (285) (4) - (339) (23) (13)
- Satisfactory (2) (95) (63) - - (158) (21) (7)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 2 (2) (294) (139) (1) - (434) (46) (18)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong - (11) (52) (1) - (64) (4) -
- Satisfactory (2) (167) (51) - - (218) (24) (8)
- Higher risk - (116) (36) - - (152) (18) (10)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Of which (stage
2):
- Less than 30
days past
due - (5) (38) - - (43) - -
- More than 30
days past
due - - (36) - - (36) - -
Stage 3,
credit-impaired
financial
assets (14) (3,455) (744) (1) (17) (4,217) - (137)
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Total credit
impairment (22) (3,894) (1,231) (6) (17) (5,148) (90) (175)
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Net carrying
value 43,315 138,155 126,941 481 32,813 298,390
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 1 0.0% 0.1% 0.3% 0.8% 0.0% 0.2% 0.0% 0.0%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 0.0% 0.1% 0.2% 0.8% 0.0% 0.1% 0.0% 0.0%
- Satisfactory 0.0% 0.2% 1.5% 0.0% 0.0% 0.4% 0.1% 0.0%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 2 0.5% 3.1% 7.0% 10.0% 0.0% 3.8% 1.1% 0.7%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 0.0% 0.8% 3.8% 16.7% 0.0% 2.3% 0.3% 0.0%
- Satisfactory 1.0% 2.4% 18.8% 0.0% 0.0% 3.0% 1.0% 0.4%
- Higher risk 0.0% 10.5% 11.5% 0.0% 0.0% 10.7% 3.3% 2.4%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Of which (stage
2):
- Less than 30
days past
due 0.0% 1.1% 14.0% 0.0% 0.0% 5.8% 0.0% 0.0%
- More than 30
days past
due 0.0% 0.0% 11.5% 0.0% 0.0% 9.7% 0.0% 0.0%
Stage 3,
credit-impaired
financial
assets (S3) 23.3% 62.1% 53.3% 100.0% 7.1% 58.6% 0.0% 23.4%
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Cover ratio 0.1% 2.7% 1.0% 1.2% 0.1% 1.7% 0.1% 0.3%
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Fair value
through profit
or loss
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Performing 25,049 52,713 34 - 2,422 55,169 - -
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 21,529 43,265 34 - 2,408 45,707 - -
- Satisfactory 3,520 9,448 - - 14 9,462 - -
- Higher risk - - - - - - - -
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Defaulted
(CG13-14) - 52 - - - 52 - -
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Gross balance
(FVTPL)(2) 25,049 52,765 34 - 2,422 55,221 - -
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Net carrying
value (incl
FVTPL) 68,364 190,920 126,976 481 35,235 353,612 - -
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
1 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $18,032 million under Customers
and of $861 million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $47,264 million under Customers
and of $20,620 million under Banks, held at fair value through
profit or loss
Page 31
Risk review continued
30.06.22
---------------- ----------------------------------------------------------------------------------------------------
Customers
--------- -------------------------------------------------------------- ------------ -----------
Corporate, Consumer,
Commercial Private Central
& Institutional & Business & other Customer Undrawn Financial
Banks Banking Banking Ventures items Total commitments Guarantees
Amortised cost $million $million $million $million $million $million $million $million
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 1 35,779 121,965 130,104 340 26,727 279,136 157,596 54,991
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 24,145 79,442 125,633 339 26,628 232,042 140,232 40,220
- Satisfactory 11,634 42,523 4,471 1 99 47,094 17,364 14,771
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 2 371 10,488 1,894 5 152 12,539 5,245 2,781
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 34 1,614 1,299 3 - 2,916 1,475 347
- Satisfactory 337 8,191 278 1 - 8,470 3,213 2,146
- Higher risk - 683 317 1 152 1,153 557 288
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Of which (stage
2):
- Less than 30
days past
due - 54 278 1 - 333 - -
- More than 30
days past
due - 8 317 1 - 326 - -
Stage 3,
credit-impaired
financial
assets 78 5,552 1,500 1 - 7,053 - 643
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Gross balance(1) 36,228 138,005 133,498 346 26,879 298,728 162,841 58,415
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 1 (7) (141) (359) (2) - (502) (37) (16)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong (4) (49) (272) (2) - (323) (22) (8)
- Satisfactory (3) (92) (87) - - (179) (15) (8)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 2 (5) (253) (130) - (2) (385) (42) (16)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong - (13) (53) - - (66) (6) (1)
- Satisfactory (5) (201) (37) - - (238) (32) (9)
- Higher risk - (39) (40) - (2) (81) (4) (6)
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Of which (stage
2):
- Less than 30
days past
due - - (37) - - (37) - -
- More than 30
days past
due - - (40) - - (40) - -
Stage 3,
credit-impaired
financial
assets (15) (3,575) (758) - - (4,333) - (190)
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Total credit
impairment (27) (3,969) (1,247) (2) (2) (5,220) (79) (222)
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Net carrying
value 36,201 134,036 132,251 344 26,877 293,508 - -
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 1 0.0% 0.1% 0.3% 0.6% 0.0% 0.2% 0.0% 0.0%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 0.0% 0.1% 0.2% 0.6% 0.0% 0.1% 0.0% 0.0%
- Satisfactory 0.0% 0.2% 1.9% 0.0% 0.0% 0.4% 0.1% 0.1%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Stage 2 1.3% 2.4% 6.9% 0.0% 1.3% 3.1% 0.8% 0.6%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 0.0% 0.8% 4.1% 0.0% 0.0% 2.3% 0.4% 0.3%
- Satisfactory 1.5% 2.5% 13.3% 0.0% 0.0% 2.8% 1.0% 0.4%
- Higher risk 0.0% 5.7% 12.6% 0.0% 1.3% 7.0% 0.7% 2.1%
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Of which (stage
2):
- Less than 30
days past
due 0.0% 0.0% 13.3% 0.0% 0.0% 11.1% 0.0% 0.0%
- More than 30
days past
due 0.0% 0.0% 12.6% 0.0% 0.0% 12.3% 0.0% 0.0%
Stage 3,
credit-impaired
financial
assets (S3) 19.2% 64.4% 50.5% 0.0% 0.0% 61.4% 0.0% 29.5%
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Cover ratio 0.1% 2.9% 0.9% 0.6% 0.0% 1.7% 0.0% 0.4%
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Fair value
through profit
or loss
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Performing 26,439 58,280 42 - 2,639 60,961 - -
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
- Strong 22,848 51,561 42 - 2,638 54,241 - -
- Satisfactory 3,591 6,655 - - 1 6,656 - -
- Higher risk - 64 - - - 64 - -
--------- ---------------- ----------- --------- --------- --------- ------------ -----------
Defaulted
(CG13-14) - 5 - - - 5 - -
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Gross balance
(FVTPL)(2) 26,439 58,285 42 - 2,639 60,966 - -
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
Net carrying
value (incl
FVTPL) 62,640 192,321 132,293 344 29,516 354,474 - -
---------------- --------- ---------------- ----------- --------- --------- --------- ------------ -----------
1 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $7,894 million under Customers and
of $795 million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and
other similar secured lending of $52,521 million under Customers
and of $21,877 million under Banks, held at fair value through
profit or loss
Page 32
Risk review continued
Credit impairment charge
9 months ended 30.09.21
9 months ended 30.09.22 (Restated)(1)
----------------------------- ---------------------------------- ----------------------------------
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 32 246 278 (51) (61) (112)
Consumer, Private & Business
Banking 104 62 166 (31) 197 166
Ventures(1) 6 1 7 1 - 1
Central & other items 26 17 43 6 (1) 5
----------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Credit impairment charge 168 326 494 (75) 135 60
Restructuring business
portfolio
Others (4) - (4) (3) - (3)
----------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Credit impairment charge (4) - (4) (3) - (3)
----------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total credit impairment
charge 164 326 490 (78) 135 57
----------------------------- ---------- ---------- ---------- ---------- ---------- ----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior period has been restated.
COVID-19 relief measures
Total(1)
----------------------------------------------------------- --------------------------
Outstanding % of
Segment $million portfolio(2)
----------------------------------------------------------- ----------- -------------
Credit card & Personal loans 5 0.0%
Mortgages & Auto 73 0.1%
Business Banking 131 1.3%
----------------------------------------------------------- ----------- -------------
Total Consumer, Private & Business Banking at 30 September
2022 209 0.2%
----------------------------------------------------------- ----------- -------------
Total Consumer, Private & Business Banking at 30 June
2022 280 0.2%
----------------------------------------------------------- ----------- -------------
1 All of the outstanding COVID-19 payment-related measures at 30
September 2022 and 30 June 2022 are within the Asia region, mainly
in Hong Kong, China and India
2 Percentage of portfolio represents the outstanding amount as a
percentage of the gross loans and advances to customers by product
and segment
Page 33
Risk review continued
Vulnerable and cyclical sector
Maximum exposure
30.09.22
------------------------- -------------------------------------------------------------------------------------------
Maximum
On Balance
Sheet Undrawn Financial Total
Exposure Net Commitments Guarantees Net Off On &
(net On Balance (net of (net Balance Off-Balance
of credit Sheet 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) 2,867 1,654 1,213 1,420 620 2,040 3,253
Commodity Traders 8,880 180 8,700 2,466 6,172 8,638 17,338
Metals & Mining 4,338 320 4,018 3,180 788 3,968 7,986
Construction 2,719 516 2,203 2,207 5,861 8,068 10,271
Commercial Real Estate 15,511 6,715 8,796 6,418 243 6,661 15,457
Hotels & Tourism 2,124 602 1,522 1,282 137 1,419 2,941
Oil & Gas 6,424 744 5,680 7,745 6,071 13,816 19,496
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
Total 42,863 10,731 32,132 24,718 19,892 44,610 76,742
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
Total Corporate,
Commercial
& Institutional Banking 138,155 31,770 106,385 95,513 47,343 142,856 249,241
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
Total Group 341,705 135,274 206,431 163,625 54,408 218,033 424,464
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
30.06.22
------------------------- -------------------------------------------------------------------------------------------
Maximum
On Balance
Sheet Undrawn Financial Total
Exposure Net Commitments Guarantees Net Off On &
(net On Balance (net of (net of Balance Off-Balance
of credit Sheet credit credit Sheet Sheet
impairment) Collateral Exposure impairment) impairment) Exposure Net Exposure
Amortised Cost $million $million $million $million $million $million $million
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
Industry:
Aviation(1) 3,114 1,648 1,466 1,445 735 2,180 3,646
Commodity Traders 8,575 332 8,243 3,094 8,745 11,839 20,082
Metals & Mining 4,061 385 3,676 3,271 729 4,000 7,676
Construction(2) 3,100 609 2,491 2,115 6,036 8,151 10,642
Commercial Real Estate 16,601 7,118 9,483 6,618 249 6,867 16,350
Hotels & Tourism 2,087 812 1,275 1,564 137 1,701 2,976
Oil & Gas 7,379 902 6,477 8,214 7,321 15,535 22,012
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
Total 44,917 11,806 33,111 26,321 23,952 50,273 83,384
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
Total Corporate,
Commercial
& Institutional Banking 134,036 24,522 109,514 97,559 51,066 148,625 258,139
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
Total Group 329,709 132,910 196,799 162,762 58,193 220,955 417,754
------------------------- ------------ ---------- ----------- ------------ ------------ --------- -------------
1 In addition to the aviation sector loan exposures, the Group
owns $3.2 billion (30 June 2022: $3.4 billion) of aircraft under
operating leases.
2 Included cyclical sector and represented
Page 34
Risk review continued
Loans and advances by stage
30.09.22
-------------- ------------------------------------------------------------------------------------------------------------------------------
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
Amortised Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount
Cost $million $million $million $million $million $million $million $million $million $million $million $million
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Industry:
Aviation 2,110 (1) 2,109 605 (3) 602 195 (39) 156 2,910 (43) 2,867
Commodity
Traders 8,454 (5) 8,449 331 (6) 325 598 (492) 106 9,383 (503) 8,880
Metals &
Mining 3,973 (2) 3,971 287 (4) 283 231 (147) 84 4,491 (153) 4,338
Construction 2,122 (12) 2,110 522 (8) 514 486 (391) 95 3,130 (411) 2,719
Commercial
Real Estate 13,204 (80) 13,124 1,849 (117) 1,732 1,259 (604) 655 16,312 (801) 15,511
Hotels &
Tourism 1,539 (4) 1,535 397 (4) 393 249 (53) 196 2,185 (61) 2,124
Oil & Gas 5,755 (8) 5,747 435 (7) 428 695 (446) 249 6,885 (461) 6,424
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total 37,157 (112) 37,045 4,426 (149) 4,277 3,713 (2,172) 1,541 45,296 (2,433) 42,863
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total
Corporate,
Commercial
&
Institutional
Banking 127,006 (145) 126,861 9,478 (294) 9,184 5,565 (3,455) 2,110 142,049 (3,894) 138,155
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total Group 327,724 (503) 327,221 11,891 (436) 11,455 7,261 (4,231) 3,030 346,875 (5,170) 341,705
-------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
30.06.22
---------------- ------------------------------------------------------------------------------------------------------------------------------
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
Amortised Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount Balance Impairment Amount
Cost $million $million $million $million $million $million $million $million $million $million $million $million
---------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Industry:
Aviation 2,193 (2) 2,191 758 (1) 757 213 (47) 166 3,164 (50) 3,114
Commodity
Traders 8,012 (6) 8,006 254 (3) 251 866 (548) 318 9,132 (557) 8,575
Metals & Mining 3,624 (2) 3,622 353 (11) 342 212 (115) 97 4,189 (128) 4,061
Construction(1) 2,540 (2) 2,538 425 (6) 419 539 (396) 143 3,504 (404) 3,100
Commercial
Real Estate 14,196 (63) 14,133 2,212 (82) 2,130 841 (503) 338 17,249 (648) 16,601
Hotels & Tourism 1,463 (2) 1,461 430 (5) 425 262 (61) 201 2,155 (68) 2,087
Oil & Gas 6,413 (6) 6,407 718 (12) 706 506 (240) 266 7,637 (258) 7,379
---------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total 38,441 (83) 38,358 5,150 (120) 5,030 3,439 (1,910) 1,529 47,030 (2,113) 44,917
---------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total Corporate,
Commercial
& Institutional
Banking 121,965 (138) 121,827 10,488 (256) 10,232 5,552 (3,575) 1,977 138,005 (3,969) 134,036
---------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
Total Group 314,915 (509) 314,406 12,910 (390) 12,520 7,131 (4,348) 2,783 334,956 (5,247) 329,709
---------------- -------- ---------- -------- -------- ---------- -------- -------- ---------- -------- -------- ---------- --------
1 Included cyclical sector and represented
Page 35
Capital review
Capital ratios
30.09.22 30.06.22 Change(4) 31.12.21 Change(4)
--------------- -------- -------- --------- -------- ---------
CET1 13.7% 13.9% (0.2) 14.1% (0.4)
Tier 1 capital 16.2% 15.9% 0.3 16.6% (0.4)
Total capital 21.2% 21.0% 0.2 21.3% (0.1)
--------------- -------- -------- --------- -------- ---------
Capital base(1)
30.09.22 30.06.22 Change(5) 31.12.21 Change(5)
$million $million % $million %
------------------------------------------- ---------- ---------- --------- ---------- ---------
CET1 instruments and reserves
Capital instruments and the related
share premium accounts 5,441 5,472 (1) 5,528 (2)
---------- ---------- --------- ---------- ---------
Of which: share premium accounts 3,989 3,989 - 3,989 -
---------- ---------- --------- ---------- ---------
Retained earnings(2) 25,435 26,266 (3) 24,968 2
Accumulated other comprehensive
income (and other reserves) 7,617 8,837 (14) 11,805 (35)
Non-controlling interests (amount
allowed in consolidated CET1) 208 188 11 201 3
Independently reviewed interim
and year-end profits 3,214 2,092 54 2,346 37
Foreseeable dividends (509) (303) 68 (493) 3
------------------------------------------- ---------- ---------- --------- ---------- ---------
CET1 capital before regulatory
adjustments 41,406 42,552 (3) 44,355 (7)
------------------------------------------- ---------- ---------- --------- ---------- ---------
CET1 regulatory adjustments
Additional value adjustments (prudential
valuation adjustments) (826) (766) 8 (665) 24
Intangible assets (net of related
tax liability) (5,458) (5,468) - (4,392) 24
Deferred tax assets that rely
on future profitability (excludes
those arising from temporary differences) (106) (120) (12) (150) (29)
Fair value reserves related to
net losses on cash flow hedges 682 475 44 34 nm(6)
Deduction of amounts resulting
from the calculation of excess
expected loss (663) (702) (6) (580) 14
Net gains on liabilities at fair
value resulting from changes in
own credit risk (106) (100) 6 15 nm(6)
Defined-benefit pension fund assets (124) (184) (33) (159) (22)
Fair value gains arising from
the institution's own credit risk
related to derivative liabilities (214) (165) 30 (60) 257
Exposure amounts which could qualify
for risk weighting of 1,250% (76) (138) (45) (36) 111
Other regulatory adjustments to
CET1 capital(3) (11) (11) - - -
------------------------------------------- ---------- ---------- --------- ---------- ---------
Total regulatory adjustments to
CET1 (6,902) (7,179) (4) (5,993) 15
------------------------------------------- ---------- ---------- --------- ---------- ---------
CET1 capital 34,504 35,373 (2) 38,362 (10)
------------------------------------------- ---------- ---------- --------- ---------- ---------
Additional Tier 1 capital (AT1)
instruments 6,505 5,264 24 6,811 (4)
------------------------------------------- ---------- ---------- --------- ---------- ---------
AT1 regulatory adjustments (20) (20) - (20) -
------------------------------------------- ---------- ---------- --------- ---------- ---------
Tier 1 capital 40,989 40,617 1 45,153 (9)
------------------------------------------- ---------- ---------- --------- ---------- ---------
Tier 2 capital instruments 12,532 13,050 (4) 12,521 -
Tier 2 regulatory adjustments (30) (30) - (30) -
---------- ---------- --------- ---------- ---------
Tier 2 capital 12,502 13,020 (4) 12,491 -
------------------------------------------- ---------- ---------- --------- ---------- ---------
Total capital 53,491 53,637 - 57,644 (7)
------------------------------------------- ---------- ---------- --------- ---------- ---------
Total risk-weighted assets (unaudited) 252,293 255,082 (1) 271,233 (7)
------------------------------------------- ---------- ---------- --------- ---------- ---------
1 Capital base is prepared on the regulatory scope of consolidation
2 Retained earnings includes IFRS9 capital relief (transitional) of $106 million
3 Other regulatory adjustments to CET1 capital includes
Insufficient coverage for non-performing exposures of -$11
million
4 Change is the percentage point difference between two periods, rather than percentage change
5 Variance is increase/(decrease) comparing current reporting period to prior periods
6 Not meaningful
Page 36
Capital review continued
Movement in total capital
Year ended
9 months
ended 30.09.22 31.12.21
$million $million
--------------------------------------------------------------- --------------- ----------
CET1 at 1 January 38,362 38,779
Ordinary shares issued in the period and share premium - -
Share buy-back (1,258) (506)
Profit for the period 3,214 2,346
Foreseeable dividends deducted from CET1 (509) (493)
Difference between dividends paid and foreseeable dividends (239) (303)
Movement in goodwill and other intangible assets (1,066) (118)
Foreign currency translation differences (2,362) (652)
Non-controlling interests 7 21
Movement in eligible other comprehensive income (1,129) (306)
Deferred tax assets that rely on future profitability 44 (12)
Decrease/(increase) in excess expected loss (83) 121
Additional value adjustments (prudential valuation adjustment) (161) (175)
IFRS 9 transitional impact on regulatory reserves including
day one (146) (142)
Exposure amounts which could qualify for risk weighting (40) (10)
Fair value gains arising from the institution's own
Credit Risk related to derivative liabilities (154) (12)
Other 24 (176)
--------------------------------------------------------------- --------------- ----------
CET1 at 30 September/31 December 34,504 38,362
--------------------------------------------------------------- --------------- ----------
AT1 at 1 January 6,791 5,612
Net issuances (redemptions) 251 1,736
Foreign currency translation difference - (2)
Excess on AT1 grandfathered limit (ineligible) (557) (555)
--------------------------------------------------------------- --------------- ----------
AT1 at 30 September/31 December 6,485 6,791
--------------------------------------------------------------- --------------- ----------
Tier 2 capital at 1 January 12,491 12,657
Regulatory amortisation 331 (1,035)
Net issuances (redemptions) (298) 573
Foreign currency translation difference (680) (181)
Tier 2 ineligible minority interest 94 (81)
Recognition of ineligible AT1 557 555
Other 7 3
--------------------------------------------------------------- --------------- ----------
Tier 2 capital at 30 September/31 December 12,502 12,491
--------------------------------------------------------------- --------------- ----------
Total capital at 30 September/31 December 53,491 57,644
--------------------------------------------------------------- --------------- ----------
Page 37
Capital review continued
Risk-weighted assets by business
30.09.22
-------------------------------------- ---------------------------------------------
Credit Operational Market
risk risk risk Total risk
$million $million $million $million
-------------------------------------- --------- ----------- --------- ----------
Corporate, Commercial & Institutional
Banking 114,519 17,038 18,222 149,779
Consumer, Private & Business Banking 42,284 8,639 - 50,923
Ventures 1,150 6 2 1,158
Central & other items 44,570 1,494 4,369 50,433
-------------------------------------- --------- ----------- --------- ----------
Total risk-weighted assets 202,523 27,177 22,593 252,293
-------------------------------------- --------- ----------- --------- ----------
30.06.22
-------------------------------------- ---------------------------------------------
Credit Operational Market
risk risk risk Total risk
$million $million $million $million
-------------------------------------- --------- ----------- --------- ----------
Corporate, Commercial & Institutional
Banking 117,789 17,038 19,350 154,177
Consumer, Private & Business Banking 43,879 8,639 - 52,518
Ventures 1,034 6 3 1,043
Central & other items 42,477 1,494 3,373 47,344
-------------------------------------- --------- ----------- --------- ----------
Total risk-weighted assets 205,179 27,177 22,726 255,082
-------------------------------------- --------- ----------- --------- ----------
31.12.21
---------------------------------------- ---------------------------------------------
Credit Operational Market
risk risk risk Total risk
$million $million $million $million
---------------------------------------- --------- ----------- --------- ----------
Corporate, Commercial & Institutional
Banking(1, 2) 125,813 16,595 20,789 163,197
Consumer, Private & Business Banking(1,
2) 42,731 8,501 - 51,232
Ventures(1) 756 5 - 761
Central & other items(1) 50,288 2,015 3,740 56,043
---------------------------------------- --------- ----------- --------- ----------
Total risk-weighted assets 219,588 27,116 24,529 271,233
---------------------------------------- --------- ----------- --------- ----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior periods have been re-stated
2 Following the Group's change in organisational structure in
2021, certain clients have been moved between the two new client
segments, Corporate, Commercial & Institutional Banking and
Consumer, Private & Business Banking. Prior period has been
restated
Risk-weighted assets by geographic region
30.09.22 30.06.22 Change(1) 31.12.21 Change(1)
$million $million % $million %
--------------------------- ---------- ---------- --------- ---------- ---------
ASIA 156,553 160,345 (2) 170,381 (8)
Africa & Middle East 42,746 43,613 (2) 48,852 (12)
Europe & Americas 50,779 50,038 1 50,283 1
Central & other items 2,215 1,086 104 1,717 29
--------------------------- ---------- ---------- --------- ---------- ---------
Total risk-weighted assets 252,293 255,082 (1) 271,233 (7)
--------------------------- ---------- ---------- --------- ---------- ---------
1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods
Page 38
Capital review continued
Movement in risk-weighted assets
Credit risk
----------------------- ---------------------------------------------------------------- ----------- ---------- ----------
Commercial, Consumer,
Corporate Private Central
& Institutional & Business & other Operational Market Total
Banking Banking(1) Ventures(1) items(1) Total risk risk risk
$million $million $million $million $million $million $million $million
----------------------- --------------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
31 December 2020 127,663 44,755 - 48,023 220,441 26,800 21,593 268,834
1 January 2021 127,581 44,755 289 47,816 220,441 26,800 21,593 268,834
Asset growth & mix 2,270 3,611 467 3,894 10,242 - - 10,242
Asset quality (1,537) (662) - 13 (2,186) - - (2,186)
Risk-weighted assets
efficiencies (415) (30) - (657) (1,102) - - (1,102)
Model updates - (3,701) - - (3,701) - - (3,701)
Methodology and policy
changes - - - - - - 2,065 2,065
Acquisitions/disposals - - - - - - - -
Foreign currency
translation (2,086) (1,242) - (1,106) (4,434) - - (4,434)
Other, including
non-credit
risk movements - - - 328 328 316 871 1,515
----------------------- --------------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
31 December 2021 125,813 42,731 756 50,288 219,588 27,116 24,529 271,233
----------------------- --------------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
Asset growth & mix (3,347) 148 394 (3,640) (6,445) - - (6,445)
Asset quality (5,809) 141 - 2,692 (2,976) - - (2,976)
Risk-weighted assets
efficiencies - - - - - - - -
Model Updates 2,520 2,017 - - 4,537 - (1,000) 3,537
Methodology and policy
changes 2,024 85 - 38 2,147 - 1,100 3,247
Acquisitions/disposals - - - - - - - -
Foreign currency
translation (6,973) (2,838) - (3,803) (13,614) - - (13,614)
Other, including
non-credit
risk movements 291 - - (1,005) (714) 61 (2,036) (2,689)
----------------------- --------------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
30 September 2022 114,519 42,284 1,150 44,570 202,523 27,177 22,593 252,293
----------------------- --------------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
1 Following the increased strategic importance and reporting of
Ventures to management, this has been established as a separate
operating segment in 2022. Prior periods have been re-stated.
Page 39
Capital review continued
Leverage ratio
30.09.22 30.06.22 Change(2) 31.12.21 Change(2)
$million $million % $million %
----------------------------------------- ---------- ---------- --------- ---------- ---------
Tier 1 capital (transitional) 40,989 40,617 1 45,153 (9)
Additional Tier 1 capital subject
to phase out - - - (557) (100)
----------------------------------------- ---------- ---------- --------- ---------- ---------
Tier 1 capital (end point) 40,989 40,617 1 44,596 (8)
----------------------------------------- ---------- ---------- --------- ---------- ---------
Derivative financial instruments 108,182 76,676 41 52,445 106
Derivative cash collateral 13,984 11,459 22 9,217 52
Securities financing transactions
(SFTs) 86,777 83,087 4 88,418 (2)
Loans and advances and other assets 655,492 664,695 (1) 677,738 (3)
----------------------------------------- ---------- ---------- --------- ---------- ---------
Total on-balance sheet assets 864,435 835,917 3 827,818 4
Regulatory consolidation adjustments(1) (71,781) (70,350) 2 (63,704) 13
Derivatives adjustments
---------- ---------- --------- ---------- ---------
Derivatives netting (78,671) (56,040) 40 (34,819) 126
Adjustments to cash collateral (12,736) (9,831) 30 (17,867) (29)
Net written credit protection 119 128 (7) 1,534 (92)
Potential future exposure on derivatives 38,787 41,103 (6) 50,857 (24)
---------- ---------- --------- ---------- ---------
Total derivatives adjustments (52,501) (24,640) 113 (295) 17,697
Counterparty risk leverage exposure
measure for SFTs 14,126 13,318 6 13,724 3
Off-balance sheet items 112,807 146,745 (23) 139,505 (19)
Regulatory deductions from Tier
1 capital (6,582) (6,856) (4) (5,908) 11
----------------------------------------- ---------- ---------- --------- ---------- ---------
Total exposure measure excluding
claims on central banks 860,504 894,134 (4) 911,140 (6)
Leverage ratio excluding claims
on central banks (%) 4.8% 4.5% 0.3 4.9% (0.1)
----------------------------------------- ---------- ---------- --------- ---------- ---------
Average leverage exposure measure
excluding claims on central banks 875,125 918,391 (5) 897,992 (3)
Average leverage ratio excluding
claims on central banks (%) 4.7% 4.4% 0.3 5.0% (0.3)
----------------------------------------- ---------- ---------- --------- ---------- ---------
Countercyclical leverage ratio
buffer 0.1% 0.1% - 0.1% -
G-SII additional leverage ratio
buffer 0.4% 0.4% (0.1) 0.4% (0.1)
----------------------------------------- ---------- ---------- --------- ---------- ---------
1 Includes adjustment for qualifying central bank claims
2 Change is the percentage point difference two periods, rather than percentage change
Page 40
Financial statements
Condensed consolidated interim income statement
For the nine months ended 30 September 2022
9 months 9 months
ended 30.09.22 ended 30.09.21
$million $million
------------------------------------------------------------- --------------- ---------------
Interest income 9,872 7,704
Interest expense (4,302) (2,601)
------------------------------------------------------------- --------------- ---------------
Net interest income 5,570 5,103
--------------- ---------------
Fees and commission income 3,062 3,432
Fees and commission expense (538) (583)
--------------- ---------------
Net fee and commission income 2,524 2,849
Net trading income 4,128 2,762
Other operating income 332 678
------------------------------------------------------------- --------------- ---------------
Operating income 12,554 11,392
--------------- ---------------
Staff costs (5,724) (5,670)
Premises costs (296) (282)
General administrative expenses (1,118) (1,025)
Depreciation and amortisation (886) (891)
--------------- ---------------
Operating expenses (8,024) (7,868)
------------------------------------------------------------- --------------- ---------------
Operating profit before impairment losses and taxation 4,530 3,524
Credit impairment (490) (57)
Goodwill, property, plant and equipment and other impairment (46) (99)
Profit from associates and joint ventures 169 187
------------------------------------------------------------- --------------- ---------------
Profit before taxation 4,163 3,555
Taxation (997) (860)
------------------------------------------------------------- --------------- ---------------
Profit for the period 3,166 2,695
------------------------------------------------------------- --------------- ---------------
Profit attributable to:
Non-controlling interests (10) 18
Parent company shareholders 3,176 2,677
------------------------------------------------------------- --------------- ---------------
Profit for the period 3,166 2,695
------------------------------------------------------------- --------------- ---------------
cents cents
------------------------------------ ----- -----
Earnings per share:
Basic earnings per ordinary share 94.8 75.6
Diluted earnings per ordinary share 93.0 74.4
------------------------------------ ----- -----
Page 41
Financial statements continued
Condensed consolidated interim statement of comprehensive
income
For the nine months ended 30 September 2022
9 months 9 months
ended 30.09.22 ended 30.09.21
$million $million
--------------------------------------------------------------- --------------- ---------------
Profit for the period 3,166 2,695
Other comprehensive income
Items that will not be reclassified to income statement: 88 227
--------------- ---------------
Own credit gains on financial liabilities designated
at fair value through profit or loss 145 7
Equity instruments at fair value through other comprehensive
income (78) 152
Actuarial gains on retirement benefit obligations 39 128
Taxation relating to components of other comprehensive
income (18) (60)
--------------- ---------------
Items that may be reclassified subsequently to income
statement: (4,407) (896)
Exchange differences on translation of foreign operations:
--------------- ---------------
Net losses taken to equity (3,338) (781)
Net gains on net investment hedges 906 151
Share of other comprehensive (loss)/gain from associates
and joint ventures (82) 3
Debt instruments at fair value through other comprehensive
income:
Net valuation losses taken to equity (1,460) (202)
Reclassified to income statement 53 (164)
Net impact of expected credit losses 33 8
Cash flow hedges:
Net (losses)/gains taken to equity (761) 15
Reclassified to income statement 3 17
Taxation relating to components of other comprehensive
income 239 57
--------------- ---------------
Other comprehensive income for the period, net of taxation (4,319) (669)
--------------------------------------------------------------- --------------- ---------------
Total comprehensive income for the period (1,153) 2,026
--------------------------------------------------------------- --------------- ---------------
Total comprehensive income attributable to:
Non-controlling interests (64) 14
Parent company shareholders (1,089) 2,012
--------------------------------------------------------------- --------------- ---------------
Total comprehensive income for the period (1,153) 2,026
--------------------------------------------------------------- --------------- ---------------
Page 42
Financial statements continued
Condensed consolidated interim balance sheet
As at 30 September 2022
30.09.22 31.12.21
$million $million
---------------------------------------------------------- ---------- ----------
Assets
Cash and balances at central banks 66,521 72,663
Financial assets held at fair value through profit or
loss 110,510 129,121
Derivative financial instruments 108,182 52,445
Loans and advances to banks 43,315 44,383
Loans and advances to customers 298,390 298,468
Investment securities 160,891 163,437
Other assets 57,720 49,932
Current tax assets 547 766
Prepayments and accrued income 2,637 2,176
Interests in associates and joint ventures 2,066 2,147
Goodwill and intangible assets 5,520 5,471
Property, plant and equipment 5,398 5,616
Deferred tax assets 879 859
Assets classified as held for sale 1,859 334
---------------------------------------------------------- ---------- ----------
Total assets 864,435 827,818
---------------------------------------------------------- ---------- ----------
Liabilities
Deposits by banks 27,728 30,041
Customer accounts 447,259 474,570
Repurchase agreements and other similar secured borrowing 3,332 3,260
Financial liabilities held at fair value through profit
or loss 87,892 85,197
Derivative financial instruments 106,590 53,399
Debt securities in issue 56,655 61,293
Other liabilities 63,036 44,314
Current tax liabilities 449 348
Accruals and deferred income 4,721 4,651
Subordinated liabilities and other borrowed funds 14,196 16,646
Deferred tax liabilities 779 800
Provisions for liabilities and charges 350 453
Retirement benefit obligations 165 210
Liabilities included in disposal groups held for sale 1,280 -
---------------------------------------------------------- ---------- ----------
Total liabilities 814,432 775,182
---------------------------------------------------------- ---------- ----------
Equity
Share capital and share premium account 6,935 7,022
Other reserves 7,617 11,805
Retained earnings 28,576 27,184
---------------------------------------------------------- ---------- ----------
Total parent company shareholders' equity 43,128 46,011
Other equity instruments 6,505 6,254
---------------------------------------------------------- ---------- ----------
Total equity excluding non-controlling interests 49,633 52,265
Non-controlling interests 370 371
---------------------------------------------------------- ---------- ----------
Total equity 50,003 52,636
---------------------------------------------------------- ---------- ----------
Total equity and liabilities 864,435 827,818
---------------------------------------------------------- ---------- ----------
Page 43
Financial statements continued
Condensed consolidated interim statement of changes in
equity
For the nine months ended 30 September 2022
Fair Fair
Ordinary Preference value value
share share through through
capital capital other other
and and Capital Own comprehensive comprehensive Cash Parent
share share and credit income income flow company Other
premium premium merger adjustment reserve reserve hedge Translation Retained shareholders' equity Non-controlling
account account reserves(1) reserve - debt - equity reserve reserve earning equity instruments interests Total
$million $million $million $million $million $million $million $million $million $million $million $million $million
-------------- -------- ---------- ----------- ---------- ------------- ------------- -------- ----------- -------- ------------- ----------- --------------- --------
As at 01
January
2021 5,564 1,494 17,207 (52) 529 148 (52) (5,092) 26,140 45,886 4,518 325 50,729
Profit/(loss)
for the
period - - - - - - - - 2,315 2,315 - (2) 2,313
Other
comprehensive
income/(loss) - - - 37 (426) 101 18 (662) 175(2) (757) - (15) (772)
Distributions - - - - - - - - - - - (31) (31)
Other equity
instruments
issued, net
of
expenses - - - - - - - - - - 2,728 - 2,728
Redemption of
other equity
instruments - - - - - - - - (51) (51) (992) - (1,043)
Treasury
shares
purchased - - - - - - - - (242) (242) - - (242)
Treasury
shares
issued - - - - - - - - 7 7 - - 7
Share option
expenses - - - - - - - - 147 147 - - 147
Dividends on
ordinary
shares - - - - - - - - (374) (374) - - (374)
Dividends on
preference
shares and
AT1
securities - - - - - - - - (410) (410) - - (410)
Share
buy-back(3,4) (39) - 39 - - - - - (506) (506) - - (506)
Other
movements 3 - - - - - - 10 (17)(5) (4) - 94(6) 90
-------------- -------- ---------- ----------- ---------- ------------- ------------- -------- ----------- -------- ------------- ----------- --------------- --------
As at 31
December
2021 5,528 1,494 17,246 (15) 103 249 (34) (5,744) 27,184 46,011 6,254 371 52,636
Profit/(loss)
for the
period - - - - - - - - 3,176 3,176 - (10) 3,166
Other
comprehensive
income/(loss) - - - 121 (1,328) (58) (648) (2,376) 24(2) (4,265) - (54) (4,319)
Distributions - - - - - - - - - - - (25) (25)
Other equity
instruments
issued, net
of
expenses - - - - - - - - - - 1,241 - 1,241
Redemption of
other equity
instruments - - - - - - - - - - (999) - (999)
Treasury
shares
issued - - - - - - - - 12 12 - - 12
Share option
expenses - - - - - - - - 145 145 - - 145
Dividends on
ordinary
shares - - - - - - - - (393) (393) - - (393)
Dividends on
preference
shares and
AT1
securities - - - - - - - - (339) (339) - - (339)
Share
buy-back(7) (87) - 87 - - - - - (1,258) (1,258) - - (1,258)
Other
movements - - - - - - - 14(5) 25(8) 39 9(9) 88(10) 136
-------------- -------- ---------- ----------- ---------- ------------- ------------- -------- ----------- -------- ------------- ----------- --------------- --------
As at 30
September
2022 5,441 1,494 17,333 106 (1,225) 191 (682) (8,106) 28,576 43,128 6,505 370 50,003
-------------- -------- ---------- ----------- ---------- ------------- ------------- -------- ----------- -------- ------------- ----------- --------------- --------
1 Includes capital reserve of $5 million, capital redemption
reserve of $217 million and merger reserve of $17,111 million
2 Comprises actuarial gain, net of taxation on Group defined benefit schemes
3 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 $2 million of
fees and stamp duty). 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
4 On 3 August 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 $20 million, and the total
consideration paid was $251 million (including $1 million of fees
and stamp duty). The total number of shares purchased was
39,914,763 representing 1.28 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
5 Movement related to Translation adjustment and AT1 Securities charges
6 Movements related to non-controlling interest from Mox Bank
Limited ($21 million), Trust Bank Singapore Ltd ($70 million) and
Zodia Markets Holdings Ltd ($3 million)
7 On 1st August 2022, the Group announced the buy-back programme
for a share buy-back of its ordinary shares of $0.50 each. As at Q3
2022 the buyback is ongoing, but the total number of shares
purchased was 62,541,043 representing 2.1 per cent of the ordinary
shares in issue, the total consideration paid was $432 million
(including $2.2 million of fees and stamp duty), and a further $128
million relating to irrevocable obligation to buy back shares under
the currency buy-back programme has been recognised. The nominal
value of the shares was transferred from the share capital to the
capital redemption reserve account
8 Movement mainly related to $21 million NCI on Power2SME Pte
Limited and $8 million on Currency fair Limited
9 $9 million relates to fees paid on redemption on AT1 securities
10 Movements related to non-controlling interest from Mox Bank
Limited ($29 million), Trust Bank Singapore Ltd ($47 million),
Zodia Markets Holdings Limited ($3 million), Power2SME ($9
million)
Page 44
Financial statements continued
Basis of preparation
This statement covers the results of Standard Chartered PLC
together with its subsidiaries and equity accounted interest in
associates and jointly controlled entities (the Group) for the nine
months ended 30 September 2022. 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 2021, which
have been prepared in accordance with UK-adopted international
accounting standards and International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU IFRS) and in
conformity with the requirements of the Companies Act 2006. There
are no significant differences between UK-adopted international
accounting standards and EU IFRS. The Group's Annual Report 2022
will continue to be prepared in accordance with these
frameworks.
The interim financial information does not constitute a full or
condensed set of financial statements under IAS 34 'Interim
Financial Reporting' as contained in UK-adopted international
accounting standards or EU IFRS. The interim financial information
has been prepared in accordance with the recognition and
measurement principles, but not the disclosure requirements under
UK-adopted international accounting standards and EU IFRS.
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 2021, 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 assessed the Group's ability to continue as a
going concern, including a review of the Group's forecasts, the
impact of COVID 19, macroeconomic conditions and geopolitical
headwinds, and confirm they are satisfied that the Group has
adequate resources to continue in business for a period of twelve
months from 26 October 2022. For this reason, the Group continues
to adopt the going concern basis of accounting for preparing the
interim financial information.
Page 45
Other supplementary financial information
Average balance sheets and yields
Average assets
9 months ended 30.09.22
-------------------------------------- -------------------------------------------------------------
Average Average Gross yield
non-interest interest interest Gross yield
earning earning Interest earning total
balance balance income balance balance
$million $million $million % %
-------------------------------------- ------------- --------- --------- ----------- -----------
Cash and balances at central banks 22,251 55,044 400 0.97 0.69
Gross loans and advances to banks 28,993 42,583 568 1.78 1.06
Gross loans and advances to customers 62,498 305,464 6,746 2.95 2.45
Impairment provisions against
loans and advances to banks and
customers - (5,363) - - -
Investment securities 33,106 166,654 2,158 1.73 1.44
Property, plant and equipment
and intangible assets 8,798 - - - -
Prepayments, accrued income and
other assets 137,744 - - - -
Investment associates and joint
ventures 2,180 - - - -
-------------------------------------- ------------- --------- --------- ----------- -----------
Total average assets 295,570 564,382 9,872 2.34 1.53
-------------------------------------- ------------- --------- --------- ----------- -----------
6 months ended 30.06.22
-------------------------------------- -------------------------------------------------------------
Average Average Gross yield
non-interest interest interest Gross yield
earning earning Interest earning total
balance balance income balance balance
$million $million $million % %
-------------------------------------- ------------- --------- --------- ----------- -----------
Cash and balances at central banks 23,650 55,603 146 0.53 0.37
Gross loans and advances to banks 28,854 41,945 326 1.57 0.93
Gross loans and advances to customers 62,985 305,280 4,027 2.66 2.21
Impairment provisions against
loans and advances to banks and
customers - (5,496) - - -
Investment securities 32,943 168,003 1,286 1.54 1.29
Property, plant and equipment
and intangible assets 8,727 - - - -
Prepayments, accrued income and
other assets 130,842 - - - -
Investment associates and joint
ventures 2,196 - - - -
-------------------------------------- ------------- --------- --------- ----------- -----------
Total average assets 290,197 565,335 5,785 2.06 1.36
-------------------------------------- ------------- --------- --------- ----------- -----------
9 months ended 30.09.21
-------------------------------------- -------------------------------------------------------------
Average Average Gross yield
non-interest interest interest Gross yield
earning earning Interest earning total
balance balance income balance balance
$million $million $million % %
-------------------------------------- ------------- --------- --------- ----------- -----------
Cash and balances at central banks 22,945 57,362 69 0.16 0.11
Gross loans and advances to banks 23,512 46,091 369 1.07 0.71
Gross loans and advances to customers 54,632 306,924 5,721 2.49 2.12
Impairment provisions against
loans and advances to banks and
customers - (6,374) - - -
Investment securities 31,746 153,280 1,545 1.35 1.12
Property, plant and equipment
and intangible assets 8,916 - - - -
Prepayments, accrued income and
other assets 110,815 - - - -
Investment associates and joint
ventures 2,297 - - - -
-------------------------------------- ------------- --------- --------- ----------- -----------
Total average assets 254,863 557,283 7,704 1.85 1.27
-------------------------------------- ------------- --------- --------- ----------- -----------
Page 46
Other supplementary financial information continued
Average liabilities
9 months ended 30.09.22
---------------------------------------- ---------------------------------------------------------
Average Average Rate paid
non-interest interest interest Rate paid
bearing bearing Interest bearing total
balance balance expense balance balance
$million $million $million % %
---------------------------------------- ------------- --------- --------- --------- ---------
Deposits by banks 17,424 28,061 161 0.77 0.47
Customer accounts:
Current accounts and savings deposits 53,070 267,651 1,236 0.62 0.52
Time and other deposits 64,420 152,245 1,741 1.53 1.07
Debt securities in issue 6,464 61,244 705 1.54 1.39
Accruals, deferred income and
other liabilities 141,654 1,094 33 4.03 0.03
Subordinated liabilities and other
borrowed funds - 15,305 426 3.72 3.72
Non-controlling interests 370 - - - -
Shareholders' funds 50,950 - - - -
---------------------------------------- ------------- --------- --------- --------- ---------
334,352 525,600 4,302 1.09 0.67
---------------------------------------- ------------- --------- --------- --------- ---------
Adjustment for Financial Markets
funding costs (213)
---------------------------------------- ------------- --------- --------- --------- ---------
Financial guarantee fees on interest
earning assets 63
---------------------------------------- ------------- --------- --------- --------- ---------
Total average liabilities and
shareholders' funds 334,352 525,600 4,152 1.06 0.65
---------------------------------------- ------------- --------- --------- --------- ---------
6 months ended 30.06.22
---------------------------------------- ---------------------------------------------------------
Average Average Rate paid
non-interest interest interest Rate paid
bearing bearing Interest bearing total
balance balance expense balance balance
$million $million $million % %
---------------------------------------- ------------- --------- --------- --------- ---------
Deposits by banks 18,293 29,193 92 0.64 0.39
Customer accounts:
Current accounts and savings deposits 54,567 270,071 585 0.44 0.36
Time and other deposits 63,898 149,866 853 1.15 0.80
Debt securities in issue 6,228 61,288 347 1.14 1.04
Accruals, deferred income and
other liabilities 132,958 1,127 23 4.12 0.03
Subordinated liabilities and other
borrowed funds - 15,559 247 3.20 3.20
Non-controlling interests 340 - - - -
Shareholders' funds 49,493 - - - -
---------------------------------------- ------------- --------- --------- --------- ---------
325,777 527,104 2,147 0.82 0.51
---------------------------------------- ------------- --------- --------- --------- ---------
Adjustment for Financial Markets
funding costs (106)
---------------------------------------- ------------- --------- --------- --------- ---------
Financial guarantee fees on interest
earning assets 47
---------------------------------------- ------------- --------- --------- --------- ---------
Total average liabilities and
shareholders' funds 325,777 527,104 2,088 0.80 0.49
---------------------------------------- ------------- --------- --------- --------- ---------
Page 47
Other supplementary financial information continued
9 months ended 30.09.21
---------------------------------------- ---------------------------------------------------------
Average Average Rate paid
non-interest interest interest Rate paid
bearing bearing Interest bearing total
balance balance expense balance balance
$million $million $million % %
---------------------------------------- ------------- --------- --------- --------- ---------
Deposits by banks 19,094 26,530 104 0.52 0.30
Customer accounts:
Current accounts and savings deposits 49,937 259,389 608 0.31 0.26
Time and other deposits 52,444 149,719 1,046 0.93 0.69
Debt securities in issue 6,337 60,006 425 0.95 0.86
Accruals, deferred income and
other liabilities 115,108 1,164 40 4.59 0.05
Subordinated liabilities and other
borrowed funds - 16,525 378 3.06 3.06
Non-controlling interests 370 - - - -
Shareholders' funds 51,662 - - - -
---------------------------------------- ------------- --------- --------- --------- ---------
294,952 513,333 2,601 0.68 0.43
---------------------------------------- ------------- --------- --------- --------- ---------
Adjustment for Financial Markets
funding costs (77)
---------------------------------------- ------------- --------- --------- --------- ---------
Financial guarantee fees on interest
earning assets 73
---------------------------------------- ------------- --------- --------- --------- ---------
Total average liabilities and
shareholders' funds 294,952 513,333 2,597 0.68 0.43
---------------------------------------- ------------- --------- --------- --------- ---------
Page 48
Other supplementary financial information continued
Important Notice - 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 forces or condition; future exchange and
interest rates; changes in environmental, social or physical risks;
legislative, regulatory and policy developments; the development of
standards and interpretations; the ability of the Group to mitigate
the impact of climate change effectively; risks arising out of
health crisis and pandemics, changes in tax rates, future business
combinations or dispositions; and other factors speci c 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 2021 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.
Financial instruments
Nothing in this document shall constitute, in any jurisdiction,
an offer or solicitation to sell or purchase any securities or
other financial instruments, nor shall it constitute a
recommendation or advice in respect of any securities or other
financial instruments or any other matter.
Caution regarding climate and environment related
information
Some of the climate and environment related information in this
document is subject to certain limitations, and therefore the
reader should treat the information provided, as well as
conclusions, projections and assumptions drawn from such
information, with caution. The information may be limited due to a
number of factors, which include (but are not limited to): a lack
of reliable data; a lack of standardisation of data; and future
uncertainty. The information includes externally sourced data that
may not have been verified. Furthermore, some of the data, models
and methodologies used to create the information is subject to
adjustment which is beyond our control, and the information is
subject to change without notice.
Page 49
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
+ 44 (0) 20 7885 5172
LSE Stock code: STAN.LN
HKSE Stock code: 02888
Page 50
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October 26, 2022 02:00 ET (06:00 GMT)
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