Standard Chartered reports 2016 half year results

Commenting on these results, Bill Winters, Group Chief Executive, said:

“We have made good progress in the year since I joined Standard Chartered. The external environment and outlook is more difficult but we are strengthening our bank, becoming more efficient and investing in our future. By maintaining our financial strength and completing our transformation during this period of heightened uncertainty we will be able to weather near-term volatility, fix our legacy issues, and capture significant underlying opportunities as they arise.”

Good progress on the strategy set out in November

• Making good progress executing the strategy as outlined in November 2015 (read the announcement)
• Corporate and Institutional Banking returned to profit in H1 2016 and continues to manage up or out low returning RWA, optimising $13 billion in the first half. Targeting clients in industries where we have not yet captured a significant share. Plans are in place to improve share of wallet and build a more diverse and resilient business
• Retail Banking added over 40,000 priority clients, 3 million active digital banking clients globally, rolling out advanced mobile and on-line banking platforms across Africa, and launched video banking in Singapore and Malaysia
• Commercial Banking strengthened operational and credit risk management, reduced cost base and improving turnaround times for transactions and client on-boarding
• Private Banking is investing $250 million to upgrade underlying technology and core banking platform, increasing the number of RMs, and added almost 500 relationships in the first half

H1 2016 financial peformance summary

• Return to profitability with underlying profit before tax of $994 million, down from $1.8 billion in H1 2015 but a significant improvement on the loss of $990 million in H2 2015
• Underlying income $6.8 billion stable in each of the first two quarters
• Underlying operating costs $4.0 billion excluding regulatory costs tightly controlled and down 13 per cent year on year
• Underlying loan impairment $1.1 billion down significantly both year-on-year and half-on-half although stresses remain and we continue to be watchful
• Common Equity Tier 1 (CET1) ratio 13.1 per cent slightly above the Group’s 12-13 per cent target range

Summary and outlook

• We expect 2016 performance to remain subdued
• Economies have slowed and the outlook is more cautious than in November 2015
• It is therefore likely to take us longer to deliver the returns set out in November
• However, the opportunities in our markets are compelling and we are creating the platform to generate value for clients and shareholders

For further information please contact:

Jon Tracey
Global Head, Communications
+44 (0)207 885 7613
jonathan.tracey@sc.com

Sarah Lindgreen
Head of Group Media Relations
+44 (0)20 7885 8764
sarah.lindgreen@sc.com

Note to Editors

• Download our full 2016 half year report
• Read about the appointment of our new Chairman José Viñals
• View our November strategy review slides and release.