Our statement on the Bank of England 2017 stress test result

Standard Chartered PLC (the Group) notes the publication today by the Bank of England of the results of the 2017 stress test exercise (the Stress Test). The results showed that, under this hypothetical annual cyclical scenario (ACS), the Group exceeded all hurdle rates and systemic reference points after all strategic management actions (SMAs).

Stress Test results

The 2017 ACS incorporated a severe and synchronised global macroeconomic and financial market stress with growth in China, Hong Kong and Singapore particularly impacted. The scenario was applied to the Group’s balance sheet as at 31 December 2016 and compared the theoretical Common Equity Tier 1 capital (CET1 Capital) ratio and Tier 1 leverage (Leverage) ratio low point positions of the Group before and after the benefit of SMAs.

Under the ACS the Group’s low point CET1 Capital ratio of 7.6 per cent after SMAs remained above the Group’s hurdle rate of 6.2 per cent and systemic reference point of 7.0 per cent. The Group’s low point Leverage ratio of 4.7 per cent after SMAs remained above the Group’s hurdle rate of 3.3 per cent and systemic reference point of 3.4 per cent.

The Group has a strong and liquid balance sheet and these results demonstrate the benefits of the actions recently undertaken by the Group to improve its resilience to an extreme stress scenario.

The Stress Test results are available to view in full on the Bank of England’s website.

For further information, please contact:
Mark Stride, Global Head, Investor Relations, +44 (0)20 7885 8596
Simon Kutner, Executive Director, Group Media Relations, +44 (0) 20 7885 8696