Final Results - Part 2
Standard Chartered PLC
20 February 2002
PART 2
STANDARD CHARTERED PLC - NOTES
1. Segmental information by geographic segment
The following tables set out profit and loss information, average loans and
advances to customers, net interest margin and selected balance sheet
information by geographic segment for the years 2001 and 2000.
2001
Asia Pacific
Other
Hong
Asia Pacific
Kong Singapore Malaysia
$m $m $m $m
Interest receivable 2,377 913 385 892
Interest payable (1,267) (601) (214) (573)
Net interest income 1,110 312 171 319
Fees and commissions receivable,
net 301 95 47 121
Dealing profits and exchange 50 40 20 90
Other operating income (3) - 3 6
Net revenue 1,458 447 241 536
Costs (679) (205) (131) (404)
Amortisation of goodwill
Total operating expenses (679) (205) (131) (404)
Operating profit before
provisions 779 242 110 132
Charge for debts, contingent
liabilities and
commitments (257) (51) (130) (86)
Operating profit before taxation 522 191 (20) 46
Loans and advances to customers -
average 21,233 6,311 3,555 5,520
Net interest margin (%) 3.2 1.9 2.7 2.3
Loans and advances to customers -
period end 21,145 6,828 3,705 5,842
Loans and advances to banks -
period end 1,227 2,315 607 3,184
Total assets employed 39,504 15,084 6,222 14,578
Total risk weighted assets and
contingents 19,320 8,933 3,630 7,446
2001
Americas
Middle UK &
East & Group
Other Head
India Africa Total
S Asia Office
$m $m $m
$m $m
Interest receivable 572 749 339 2,479 8,706
Interest payable (370) (462) (133) (2,127) (5,747)
Net interest income 202 287 206 352 2,959
Fees and commissions
receivable, net 78 96 86 153 977
Dealing profits and exchange 42 55 62 111 470
Other operating income 36 4 2 10 58
Net revenue 358 442 356 626 4,464
Costs (209) (207) (226) (384) (2,445)
Amortisation of goodwill (140) (140)
Total operating expenses (209) (207) (226) (524) (2,585)
Operating profit before
provisions 149 235 130 102 1,879
Charge for debts, contingent
liabilities and
commitments (27) (39) (13) (128) (731)
Operating profit before
taxation 122 196 117 (26) 1,148
Loans and advances to
customers - average 1,909 4,102 1,007 9,198 52,835
Net interest margin (%) 4.0 4.0 8.2 1.0 3.1
Loans and advances to
customers - period end 1,923 4,117 969 8,476 53,005
Loans and advances to banks -
period end 398 1,704 325 9,818 19,578
Total assets employed 5,993 9,603 3,487 41,190 135,661
Total risk weighted assets
and contingents 3,590 5,802 1,343 19,778 69,842
a. Total interest receivable and total interest payable include intra-group
interest of $2,287 million.
b. Group central expenses have been distributed between segments in proportion
to their direct costs and the benefit of the Group's capital has been
distributed between segments in proportion to their risk weighted assets.
c. Business acquisitions have been made as part of the Group's growth strategy.
These activities are a result of corporate decisions made at the centre and
the amortisation of purchased goodwill is included in the Americas, UK and
Group Head Office segment.
(d) Total assets employed include intra-group items of $24,724
million and balances of $3,558 million which are netted in the
Summarised Consolidated Balance Sheet. Total risk weighted assets and
contingents include $500 million of balances and other supervisory
adjustments which are netted in calculating capital ratios.
(e) Assets held at the centre have been distributed between
geographic segments in proportion to their total assets employed.
STANDARD CHARTERED PLC - NOTES
1. Segmental information by geographic segment (continued)
2000
Asia Pacific
Other
Hong
Asia
Kong Singapore Malaysia
Pacific
$m $m $m
$m
Interest receivable 2,501 825 347 972
Interest payable (1,595) (528) (154) (672)
Net interest income 906 297 193 300
Fees and commissions receivable,
net 243 104 48 138
Dealing profits and
exchange 44 35 19 72
Other operating income 3 - 3 7
Net revenue 1,196 436 263 517
Costs (553) (176) (116) (448)
Amortisation of goodwill
Restructuring charge
Year 2000 costs
Total operating expenses (553) (176) (116) (448)
Operating profit before
provisions 643 260 147 69
Charge for debts, contingent
liabilities and commitments (126) (20) (25) (60)
Operating profit 517 240 122 9
Profit on disposal of subsidiary
undertakings
Profit before taxation 517 240 122 9
Loans and advances to customers -
average 18,157 6,279 3,744 5,389
Net interest margin (%) 2.9 2.2 3.6 2.5
Loans and advances to customers -
period end 20,615 6,294 4,091 5,504
Loans and advances to banks -
period end 2,122 3,390 414 3,089
Total assets employed 38,290 14,233 6,222 13,549
Total risk weighted assets and
contingents 17,958 8,310 3,677 7,244
2000
Americas
Middle UK &
East & Group
Other Head
India Africa Total
S Asia Office
$m $m $m
$m $m
Interest receivable 383 618 408 2,969 9,023
Interest payable (240) (429) (203) (2,493) (6,314)
Net interest income 143 189 205 476 2,709
Fees and commissions
receivable, net 55 71 104 125 888
Dealing profits and
exchange 21 38 55 93 377
Other operating income 54 5 4 40 116
Net revenue 273 303 368 734 4,090
Costs (132) (155) (212) (505) (2,297)
Amortisation of goodwill (71) (71)
Restructuring charge (323) (323)
Year 2000 costs (23) (23)
Total operating expenses (132) (155) (212) (922) (2,714)
Operating profit before
provisions 141 148 156 (188) 1,376
Charge for debts, contingent
liabilities and commitments (31) (28) (50) (130) (470)
Operating profit 110 120 106 (318) 906
Profit on disposal of
subsidiary undertakings 532 532
Profit before taxation 110 120 106 214 1,438
Loans and advances to
customers - average 1,389 4,073 1,084 9,398 49,513
Net interest margin (%) 4.1 2.8 8.5 1.5 3.1
Loans and advances to
customers - period end 1,760 4,262 1,071 8,285 51,882
Loans and advances to banks -
period end 393 1,308 198 12,845 23,759
Total assets employed 4,447 9,321 2,863 37,761 126,686
Total risk weighted assets
and contingents 3,415 5,673 1,302 17,451 65,030
f. Total interest receivable and total interest payable include intra-group
interest of $2,118 million.
g. Group central expenses have been distributed between segments in proportion
to their direct costs and the benefit of the Group's capital has been
distributed between segments in proportion to their risk weighted assets.
h. Business acquisitions have been made as part of the Group's growth strategy.
These activities are a result of corporate decisions made at the centre and
the amortisation of purchased goodwill is included in the Americas, UK and
Group Head Office segment. The restructuring programme and the resolution of
Year 2000 related technology issues have been managed from the centre as
global projects and all expenses are included in the Americas, UK and Group
Head Office segments.
(i) Total assets employed include intra-group items of $21,790
million and balances of $2,616 million which are netted in the
Summarised Consolidated Balance Sheet. Total risk weighted assets and
contingents include balances of $564 million which are netted in
calculating Capital ratios. Assets held at the centre have been
distributed between geographic segments in proportion to their total
assets employed.
STANDARD CHARTERED PLC - NOTES
1. Segmental information by geographic segment (continued)
The following table sets out the structure of Standard Chartered's deposits by
principal geographic region where it operates at 31 December 2001 and 31
December 2000.
2001
Asia Pacific
Other
Hong
Asia Pacific
Kong Singapore Malaysia
$m
$m $m $m
Non interest bearing current and
demand accounts 1,207 901 728 439
Interest bearing current and
demand accounts 10,002 1,622 107 1,301
Savings deposits 582 437 579 1,042
Time deposits 16,687 7,078 2,824 4,565
Other deposits 4 253 303 1,099
Total 28,482 10,291 4,541 8,446
Deposits by banks 1,001 1,028 472 2,051
Customer accounts 27,481 9,263 4,069 6,395
28,482 10,291 4,541 8,446
Debt securities in issue 1,305 81 245 363
Total 29,787 10,372 4,786 8,809
2001
Americas
Middle UK &
East & Group
Total
Other Head
India Africa Deposits
S Asia Office
$m $m $m
$m $m
Non interest bearing current
and demand accounts 672 980 714 669 6,310
Interest bearing current and
demand accounts 5 767 711 2,228 16,743
Savings deposits 518 1,040 372 220 4,790
Time deposits 2,798 3,672 461 9,831 47,916
Other deposits 57 205 190 1,673 3,784
Total 4,050 6,664 2,448 14,621 79,543
Deposits by banks 1,115 1,298 67 4,656 11,688
Customer accounts 2,935 5,366 2,381 9,965 67,855
4,050 6,664 2,448 14,621 79,543
Debt securities in issue 82 - 3 1,627 3,706
Total 4,132 6,664 2,451 16,248 83,249
2000
Asia Pacific
Other
Hong
Asia
Kong Singapore Malaysia
Pacific
$m $m $m
$m
Non interest bearing current and
demand accounts 1,002 813 935 383
Interest bearing current and
demand accounts 7,850 1,487 133 2,283
Savings deposits 924 449 597 916
Time deposits 18,482 6,385 2,472 4,447
Other deposits 3 2 591 512
Total 28,261 9,136 4,728 8,541
Deposits by banks 1,594 478 555 2,335
Customer accounts 26,667 8,658 4,173 6,206
28,261 9,136 4,728 8,541
Debt securities in issue 1,838 84 21 372
Total 30,099 9,220 4,749 8,913
2000
Americas
Middle UK &
East & Group
Total
Other Head
India Africa Deposits
S Asia Office
$m $m $m
$m $m
Non interest bearing current
and demand accounts 599 809 452 394 5,387
Interest bearing current and
demand accounts 2 584 763 2,226 15,328
Savings deposits 473 882 341 15 4,597
Time deposits 2,466 3,292 417 9,363 47,324
Other deposits 106 200 34 2,056 3,504
Total 3,646 5,767 2,007 14,054 76,140
Deposits by banks 831 795 69 4,446 11,103
Customer accounts 2,815 4,972 1,938 9,608 65,037
3,646 5,767 2,007 14,054 76,140
Debt securities in issue 85 1 13 2,119 4,533
Total 3,731 5,768 2,020 16,173 80,673
STANDARD CHARTERED PLC - NOTES
2. Segmental information by class of business
2001 2000
Consumer Wholesale Consumer Wholesale
Banking Banking Total Banking Banking Total
$m $m $m $m $m $m
Net interest income 1,720 1,239 2,959 1,618 1,091 2,709
Other income 520 985 1,505 453 928 1,381
Net revenue 2,240 2,224 4,464 2,071 2,019 4,090
Costs (1,254) (1,191) (2,445) (1,124) (1,173) (2,297)
Amortisation of goodwill (140) (71)
Restructuring charge - (323)
Year 2000 costs - (23)
Total operating expenses (1,254) (1,191) (2,585) (1,124) (1,173) (2,714)
Operating profit before provisions 986 1,033 1,879 947 846 1,376
Charge for debts, contingent liabilities
and commitments (330) (401) (731) (182) (288) (470)
Operating profit 656 632 1,148 765 558 906
Profit on sale of subsidiary undertakings - 532
Profit before taxation 1,148 1,438
Total assets employed 44,988 90,673 135,661 42,729 83,957 126,686
a. Group central expenses and other overhead costs have been distributed between
classes of business in proportion to their direct costs and the benefit of
the Group's capital has been distributed between classes of business in
proportion to their risk weighted assets.
b. See note 1(c) and 1(h) on amortisation of goodwill, restructuring charge and
Year 2000 costs on pages 38 and 39.
c. Total assets employed include intra-group items of $24,724 million (2000:
$21,790 million) and balances which are netted in the summarised
consolidated balance sheet of $3,558 million (2000: $2,616 million).
d. Assets held at the centre have been distributed between classes of business
in proportion to their total assets employed.
STANDARD CHARTERED PLC - NOTES
3. Consolidated profit and loss account
First half and second half 2001
2nd Half 1st Half
2001 2001
$m $m
Interest receivable 3,019 3,400
Interest payable (1,488) (1,972)
Net interest income 1,531 1,428
Fees and commissions receivable, net 500 477
Dealing profits and exchange 221 249
Other operating income 25 33
746 759
Net revenue 2,277 2,187
Administrative expenses:
Staff (624) (617)
Premises (135) (150)
Other (387) (348)
Depreciation and amortisation, of which: (172) (152)
Amortisation of goodwill (72) (68)
Other (100) (84)
Total operating expenses (1,318) (1,267)
Operating profit before provisions 959 920
Provisions for bad and doubtful debts (463) (269)
Provisions for contingent liabilities and commitments 1 -
Profit before taxation 497 651
Taxation (160) (218)
Profit after taxation 337 433
Minority interests (equity) (6) (6)
Minority interests (non-equity) (36) (23)
Profit for the period attributable to shareholders 295 404
Dividends on non-equity preference shares (56) (12)
Dividends on ordinary equity shares (329) (145)
Retained profit (90) 247
STANDARD CHARTERED PLC - NOTES
4. Dealing profits and exchange
2001 2000
$m $m
Income from foreign exchange dealing 374 325
Profits less losses on dealing securities 22 26
Other dealing profits and exchange 74 26
470 377
5. Other operating income
2000
2001
$m
$m
Other operating income includes:
Share of profits arising on securitised instalment credit agreements - 26
Profits less losses on disposal of investment securities 23 11
Dividend income 3 6
6. Taxation
2000
2001
$m
$m
United Kingdom corporation tax at 30% (2000: 30%) 211 194
Relief for overseas tax (179) (150)
32 44
Overseas tax 346 333
378 377
Effective tax rate 32.9% 26.2%
There is no tax chargeable against the profit on sale of subsidiary undertakings
of $532 million recognised in the year ended 31 December 2000.
STANDARD CHARTERED PLC - NOTES
7. Dividends on preference shares
2001 2000
$m $m
Non-cumulative irredeemable preference shares:
7 3/8% preference shares of £1 each 11 12
8 1/4% preference shares of £1 each 12 12
8.9% preference shares of $5 each 45 -
68 24
8. Dividends on ordinary shares
2001 2000
Cents per share Cents per
$m share $m
Interim 12.82 145 11.651 126
Final 29.10 329 26.454 298
41.92 474 38.105 424
The 2001 final dividend of 29.10 cents per share will be paid in sterling,
unless shareholders elect to be paid in US dollars, on 17 May 2002 to
shareholders on the register of members at the close of business on 1 March
2002. It is intended that shareholders will be able to elect to receive shares
credited as fully paid instead of the final dividend (or part thereof). Details
will be sent to shareholders on or around 18 March 2002.
STANDARD CHARTERED PLC - NOTES
9. Earnings per ordinary share
2001 2000
Average Average
Per share Per share
number of amount number of
Profit Cents Profit amount
shares shares
$m $m Cents
('000) ('000)
Basic EPS
Profit attributable to ordinary shareholders 631 1,128,407 55.9c 1,002 1,086,619 92.2c
Effect of dilutive potential ordinary shares:
Convertible Bonds 16 34,488 14 25,866
Options - 4,478 - 7,009
Diluted EPS 647 1,167,373 55.4c 1,016 1,119,494 90.7c
Headline earnings per ordinary share
The Institute of Investment Management and Research Statement of Investment
Practice No 1 provides a definition of headline earnings. As this differs from
earnings defined in Financial Reporting Standard 14 the table below provides a
reconciliation.
2000
2001
$m
$m
Profit attributable to shareholders after preference dividends 631 1,002
Amortisation of goodwill 140 71
Profits less losses on disposal of investment securities (23) (11)
Profit on disposal of subsidiaries - (532)
Headline earnings 748 530
66.3c
Headline earnings per ordinary share 66.3c 48.8c
Normalised earnings per ordinary share
The following table shows the calculation of normalised earnings per share, i.e.
based on the Group's results excluding profits on disposal of subsidiary
undertakings and the charge for restructuring.
2000
2001
$m
$m
Profit attributable to shareholders after preference dividends 631 1,002
Amortisation of goodwill 140 71
Profits less losses on disposal of investment securities (23) (11)
Profit on disposal of subsidiary undertakings - (532)
Restructuring charge - 323
Tax credit relating to restructuring charge - (81)
Normalised earnings 748 772
Normalised earnings per ordinary share 66.3c 71.1c
STANDARD CHARTERED PLC - NOTES
10. Provisions for bad and doubtful debts
2001 2000
Specific General Specific General
$m $m $m $m
Provisions held at 1 January 1,146 468 1,519 439
Exchange translation differences (12) - (27) -
Amounts written off (1,001) - (1,005) -
Recoveries of amounts previously written off 51 - 52 -
Acquisitions of subsidiary undertakings - - 165 32
Disposal of subsidiary undertakings - - (68) (3)
Other 35 48 -
New provisions 994 - 705 -
Recoveries/provisions no longer required (262) - (243) -
Net charge against profit 732 - 462 -
Provisions held at 31 December 951 468 1,146 468
Corporate loans and advances to customers against which provisions have been
outstanding for 2 years or more are written down to their net realisable value.
11. Non-performing loans and advances
2000
2001
SCNB Other Total SCNB Other Total
$m $m $m $m $m $m
Loans and advances on which interest is suspended 753 2,440 3,193 796 2,557 3,353
Specific provisions for bad and doubtful debts (69) (882) (951) (72) (1,074) (1,146)
Interest in suspense - (225) (225) - (322) (322)
684 1,333 2,017 724 1,161 1,885
The Group acquired Standard Chartered Nakornthon Bank (SCNB) (formerly
Nakornthon Bank) in September 1999. Under the terms of the acquisition, net
non-performing loans (NPLs) of $753 million are subject to a Loan Management
Agreement (LMA) with the Financial Institutions Development Fund (FIDF), a Thai
Government agency. Under the LMA, the FIDF has guaranteed the recovery of a
principal amount of the NPLs of $520 million. The LMA also provides, inter alia,
for loss sharing arrangements whereby the FIDF will bear up to 85 per cent of
losses in excess of the guaranteed amount. The carrying cost of the NPLs is
reimbursable by the FIDF to SCNB, every half year, for a period of five years
from the date of acquisition.
Excluding the SCNB non-performing loan portfolio, specific provisions and
interest in suspense together cover 45 per cent (2000: 55 per cent) of total
non-performing lending to customers. If lending and provisions are adjusted for
the cumulative amounts written off, the effective cover is 67 per cent (2000: 69
per cent).
STANDARD CHARTERED PLC - NOTES
12. Called up share capital
2001 2000
$m $m
Equity capital
Ordinary shares of $0.50 each 566 -
Ordinary shares of £0.25 each - 421
Non-equity capital
Non-cumulative irredeemable preference shares:
7 3/8% preference shares of £1 each 145 149
81/4% preference shares of £1 each 145 149
8.9% preference shares of $5 each 5 -
861 719
Under the terms of the share conversion on 18 January 2001, each ordinary
shareholder of the Company received one new ordinary share of $0.50 for each
ordinary share of £0.25 that they held before the conversion. The ordinary
shares of £0.25 each were cancelled and share certificates for those shares are
no longer valid.
On 26 June 2001 the Company issued 1 million Non-cumulative Preference Shares
with a nominal value of $5 each, at a price of $1,000 per Preference Share. The
Preference Shares rank pari passu inter se with the existing preference shares
and in priority to the ordinary shares. Subject to certain conditions, all or
part of the Preference Shares may be redeemed at the option of the issuer, at
dividend payment dates on or after October 2006.
13. Shareholders' funds
2001 2000
Share Premises Profit Total Total
Share Capital
premium revaluation and loss shareholders' shareholders'
capital reserve
account reserve account funds funds
$m $m
$m $m $m $m $m
At 1 January 719 1,907 - 49 3,678 6,353 5,453
Exchange translation (9) - - (2) (108) (119) (543)
differences
Transfer from share premium
as a result of capital 144 (149) 5 - - - -
conversion
Shares issued, net of 7 984 - - - 991 840
expenses
Goodwill previously written
off against reserves 25
Retained profit - - - - 157 157 578
Capitalised on exercise of
share options - 19 - - (19) - -
Realised on disposal of
premises - - - (2) 2 - -
At 31 December 861 2,761 5 45 3,710 7,382 6,353
Equity interests 6,123 6,055
Non-equity interests 1,259 298
At 31 December 7,382 6,353
STANDARD CHARTERED PLC - NOTES
14. Consolidated cash flow statement
Reconciliation between operating profit before taxation and net cash inflow from
operating activities:
2001 2000
$m $m
Operating profit 1,148 906
Items not involving cash flow:
Amortisation of goodwill 140 71
Depreciation and amortisation of premises and equipment 184 226
Amortisation of investments (11) (27)
Charge for bad and doubtful debts and contingent liabilities 731 470
Debts written off, net of recoveries (950) (953)
(Decrease)/increase in accruals and deferred income (66) 159
Decrease/(increase) in prepayments and accrued income 236 (340)
Adjustments for items shown separately:
Interest paid on subordinated loan capital 285 202
Net cash inflow from trading activities 1,697 714
Net increase in cheques in the course of collection (71) (58)
Net decrease/(increase) in treasury bills and other eligible bills 1 (103)
Net decrease/(increase) in loans and advances to banks and customers 1,282 (5,630)
Net increase in deposits from banks, customer accounts and debt securities in issue 3,805 7,525
Net increase in dealing securities (606) (47)
Net decrease/(increase) in mark-to-market adjustment 63 (106)
Net (decrease)/increase in other accounts (95) 1,479
Net cash inflow from operating activities 6,076 3,774
Analysis of changes in cash
Balance at beginning of period 4,278 2,245
Exchange translation differences (121) (236)
Net cash (outflow)/inflow (608) 2,269
Balance at end of period 3,549 4,278
The financial information included herein has been derived from the audited and
unaudited information contained in the Group's Report and Accounts for the year
ended 31 December 2001 and 2000. Statutory accounts for 2000 have been delivered
to the Registrar of Companies. The auditors have reported on these accounts;
their report was unqualified and did not contain a statement under Section 237
(2) (accounting records or returns inadequate or accounts not agreeing with
records and returns) or 237(3) (failure to obtain necessary information and
explanation) of the Companies Act 1985.
Financial Calendar
Ex-dividend date 27 February 2002
Record date 1 March 2002
Posting to shareholders of 2001 Report and Accounts 18 March 2002
Annual General Meeting 2 May 2002
Payment date - final dividend on ordinary shares 17 May 2002
Copies of this statement are available from Investor Relations, Standard
Chartered PLC, 1 Aldermanbury Square, London, EC2V 7SB or from our website on
www.standardchartered.com/investor
For further information please contact:
Pamela McGann, Group Head of External Affairs
on (020) 7280 7245
or
Tim Halford, Director of Corporate Affairs
on (020) 7280 7159
or
Steve Seagrove, Head of Investor Relations
on (020) 7280 7164
An interview with Mervyn Davies in video/audio and text is available at
www.standardchartered.com/investor or www.cantos.com
Images of Standard Chartered and the new logo are available for the media at
www.newscast.co.uk
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