Standard Chartered PLC Presentation of Financial Information
London — As announced on 10 September 2020, Standard Chartered PLC (the Group) updated its organisation structure effective on 1 January 2021 as part of the ongoing execution of its refreshed strategy. The Group is also aligning the external reporting of some of its products with how they are managed under the new organisation structure. To aid comparisons with prior periods at its results for the first quarter of 2021 to be published on 29 April 2021, the Group has today made available on its website (Investors) financial information reflecting the new organisation structure and product classification for the past eight quarters:
- Private Banking and Retail Banking: The two client segments that serve individual and business banking clients have been combined to form a single Consumer, Private & Business Banking segment
- Corporate & Institutional Banking and Commercial Banking: The two client segments that serve larger companies and institutions have been combined to form a single Corporate, Commercial & Institutional Banking segment
- Greater China & North Asia and ASEAN & South Asia: These two regions have been combined to form a single Asia region
For reporting purposes, the combination of segments and regions requires a simple addition of the respective financial results. Any further changes in the second quarter of 2021 resulting from the final allocation of smaller business clients between segments will be noted at the Group’s half-year results but are not expected to be material.
The Group’s Financial Markets business that serves the Corporate, Commercial & Institutional Banking segment has been expanded and reorganised, and going forward its income will be reported on the following basis:
- Macro Trading: Many of the Group’s clients require seamless coverage in relation to financial instruments that are sensitive to macroeconomic indicators. Integrating the management of Rates, FX and Commodities helps to satisfy this demand in the most efficient manner possible, and the external reporting will align to this view
- Credit Markets: The Group has integrated the majority of its Corporate Finance business within Financial Markets. This will enable it to provide a tailored solution to clients seeking to originate financing combined with the insight and liquidity of the secondary market-making business. This will be broken down for reporting purposes into:
- Credit Trading: Provides liquidity to clients in the secondary markets. Reporting income from this activity separately will allow investors to combine it with Macro Trading income, which is often reported in aggregate as ‘FICC’ by other market participants
- Financing Solutions and Issuance: Provides tailored financing solutions that includes project and export finance, event-driven financing, leveraged finance, bond and loan syndication and bespoke financing
- Structured Finance: Provides financing and leasing services to the transportation sector
- Financing and Security Services: Provides custody, prime brokerage, clearing and money markets services, and includes income deriving from credit and funding valuation adjustments
- Debit valuation adjustment (DVA): Adjustments to the fair value of derivative contracts that reflect the possibility that the Group may default and not pay the full market value of contracts
The remaining elements of the Group’s Corporate Finance business – primarily M&A Advisory – have been transferred into Lending and Portfolio Management, integrating merger and acquisition capabilities across the broader coverage organisation.
The re-presentation summarised above has not resulted in any changes to the reported income or balances in total at a Group level.
For further information, please contact:
Gregg Powell, Head of Investor Relations: +852 2820 3282
Adnan Akhtar, Head of Sell-Side Investor Relations: +44 (0) 20 7885 7255
Julie Gibson, Head of Media Relations: +44 (0) 20 7885 2434