Standard Chartered Singapore delivers income of US$2,027 million and operating profit of US$851 million for FY2014

Press Release

FOR IMMEDIATE RELEASE

Standard Chartered Singapore delivers income of US$2,027 million and operating profit of US$851 million for FY2014

Highlights

• Profitable business; disciplined balance sheet and cost management
• Full year income of US$2,027 million, down five per cent year-on-year (YoY)
• Full year operating profit before tax of US$851 million, down eight per cent YoY
• Expenses at US$1,093 million, down by three per cent YoY

4 March 2015, Singapore – Standard Chartered Bank in Singapore (the Bank) reported income of US$2,027 million and operating profit before tax of US$851 million for the financial year ended 31 December 2014 (FY2014). The Bank generated broadly stable client income, against challenging market conditions, reflecting the strength of its franchise.

Stable client income generated from diverse business portfolios

Client income remained broadly stable against backdrop of continued low interest rates, muted global trade, sharp drop in commodity prices, and intense competition. Client income from Corporate and Institutional Clients segment was down slightly at one per cent YoY, supported by increased Foreign Exchange volumes, Corporate Finance transactions and strong activities along the China corridor. Client income from the Retail Clients segment was flat, as income growth in Wealth Management was partially offset by the decline in Retail Product income as a result of de-risking, regulatory cooling measures and efforts to sharpen its strategy to capture the affluent segment. The Private Banking Clients segment’s client income grew five per cent, underpinned by good growth in Assets under Management and investment related product penetration. Performance for the Commercial Clients business was impacted by both external factors and significant actions taken to reposition the business for future growth.

Continued pressure on Own Account Income

Industry-wide challenges including low volatility, narrowing trading ranges and reduced market liquidity continued to place downward pressure on the Bank’s Own Account Income which registered a 37 per cent drop YoY.

Disciplined cost management

The consolidation and integration of the Bank’s business in 2014 has sharpened its focus on distinct client segments and shifted the emphasis from top line growth to returns.

Disciplined cost management and enhanced efficiencies resulted in a decrease of three per cent YoY in expenses for FY2014 at US$1,093 million.

Robust fundamentals

The Singapore franchise’s fundamentals remain robust. The combined balance sheet of the Branch¹and the Subsidiary² in Singapore is healthy, and the Bank maintains a strong Advances to Deposits ratio. The portfolio is in good shape with Loan Impairment at a low level of US$80 million.

Neeraj Swaroop, Chief Executive Officer, Standard Chartered Bank, Singapore, said:

“We delivered a set of healthy results despite the challenging market conditions. Our franchise in Singapore remains very profitable, with a strong balance sheet, well-managed costs and we continue to be the second largest contributor to the Group income and profit.

With our strong and diversified client franchise, extensive and innovative in-country product and service capabilities, coupled with the unparalleled strength of our network and access to key trade corridors, we are well positioned to weather the current operating environment and capture new market opportunities.

Going forward, we will continue to focus on delivering our refreshed strategy, and leverage our one-bank synergies, network and product capabilities to deepen market penetration. We will sharpen our focus on further growing our Wealth Management platform, providing more support to companies which would need help in their overseas business expansion, build on our leadership in the digital banking space and continue with our good work in driving the internationalisation of the RMB.”

– Ends –

¹ Standard Chartered’s Branch in Singapore houses its business in Corporate Banking and Private Banking.

² Standard Chartered’s local Subsidiary houses its business in Retail Banking and SME.

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Note to Editors:

Standard Chartered in Singapore is part of an international banking group with more than 86,000 employees and a 150-year history in some of the world’s dynamic markets. We bank the people and companies driving investment, trade and the creation of wealth across Asia, Africa and the Middle East, where we earn around 90 per cent of our income and profits. Our heritage and values are expressed in our brand promise, Here for good.

Standard Chartered has a history of 156 years in Singapore, opening its first branch here in 1859 and in October 1999 was among the first international banks to receive a Qualifying Full Bank (QFB) license, an endorsement of the Group’s long-standing commitment to its businesses in the country.

The Bank transferred its Singapore Retail and SME business to a locally-incorporated subsidiary, Standard Chartered Bank (Singapore) Limited on 7 October 2013.

The Bank in Singapore serves both retail and corporate customers. It provides credit cards, personal loans, auto loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. The Bank also provides corporate and institutional clients with services in trade finance, cash management, lending, securities services, foreign exchange, debt capital markets and corporate finance.

The Bank employs around 7,000 people in Singapore and has a network of 18 branches, 7 Priority Banking centres and 32 ATMs. Standard Chartered is the only international bank to offer NETS service, giving its customers access to EFTPOS at over 17,000 outlets island-wide.

The Bank’s global business is managed from Singapore, as is its global Technology & Operations function.

For further information please visit www.sc.com. Follow Standard Chartered on www.facebook.com/standardchartered and on Twitter @StanChart.

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