First Quarter 2020 Results

RNS Number : 2375L

Standard Chartered PLC

29 April 2020

Standard Chartered PLC - first quarter 2020 results

Standard Chartered PLC (the Group) today releases its results for the quarter ended 31 March 2020. All figures are presented on an underlying basis and comparisons are made to the first quarter in 2019 on a reported currency basis, unless otherwise stated.

"The unique characteristics of the Standard Chartered franchise are coming through strongly as the impact of COVID-19 evolves. Our teams around the network are responding very well, staying close to our clients. While pressure on credit quality has increased recently, we delivered good underlying income growth of six per cent in the first quarter and maintained strong cost discipline.

We try to show every day that we are 'Here for good', as individuals and collectively, and I am proud of the way my 91,000 colleagues around the world are facing this challenge. Among the many support initiatives being rolled out across our 59 markets, we have launched a $50 million global fund with donations from colleagues and the bank to provide assistance to those affected by COVID-19 and related economic impacts and have committed up to $1 billion of financing, offered at cost, for companies that are providing goods and services to help in the fight against the pandemic. That's in addition to the help we are providing all our clients as they face ongoing challenges. We won't stop there and will continue to think of practical and impactful ways to make a difference.

While sentiment globally is extremely depressed now, the uniqueness of this franchise and the work we have done since 2015 to secure its foundations gives me confidence that we can come through the crisis with strength. "

Bill Winters, Group Chief Executive

Selected information concerning 1Q'20 financial performance

· Income up 13% to $4.3bn; up 15% constant currency (ccy)

o Excluding $358m positive movement in Debit Valuation Adjustment (DVA), income was up 6% ccy

· Costs down 2% to $2.4bn; down 1% ccy

o Positive income-to-cost jaws of 6% ex-DVA; cost-to-income ratio improved 4 percentage points to 59% ex-DVA

· Net interest margin down 2bps from 4Q'19 to 1.52%

· Credit impairment rose significantly, driven primarily by the economic impact of the rapid spread of COVID-19

o Stage 1 and 2 impairment up $388m to $451m

§ Approximately half due to modelled outcome and half due to management overlay

o Stage 3 impairment increased $490m to $505m; ~50% from two exposures in different markets and sectors

o Gross stage 3 plus credit grade 12 exposures up 2% in 1Q'20 to $9.2bn; early alerts more than doubled to $11.5bn

· Return on tangible equity down 100bps to 8.6%

o Pre-provision operating profit up 41% to $2.0bn; up 16% ccy and ex-DVA

o Underlying profit before tax down 12% to $1.2bn; down 36% ccy and ex-DVA

o Statutory profit before tax down 29% to $0.9bn, includes $249m goodwill impairment in India from GDP growth revision

· Risk-weighted assets of $273bn up $9bn or 3% in 1Q'20; mostly attributable to the impact of COVID-19

· The Group remains strongly capitalised and highly liquid, enabling support for clients and communities through COVID-19

o Common equity tier 1 (CET1) ratio in middle of 13-14% medium-term target range at 13.4%: down 45bps since 4Q'19

§ 60bps reduction from risk-weighted asset growth; partly offset by profits and decision to suspend distributions in 2020

§ Permata sale is expected to complete in 2Q'20 and to increase CET1 by 40bps

o Liquidity coverage ratio resilient in stressed market conditions; broadly flat QoQ at 142% (4Q'19: 144%)

o $5bn of $45bn committed revolving facilities utilised; draw-down rate slowed significantly in April

· Earnings per share down 2.3c or 8% to 25.4c; 40m shares bought back and cancelled in 1Q'20

Outlook

We expect a gradual recovery from the COVID-19 pandemic, with major contraction in economic growth rates across most of the world in the second quarter, before the global economy moves out of recession in the latter part of 2020, most likely led and driven by markets in our footprint. The pace at which individual markets recover will be heavily dependent on the efficacy of government stimulus initiatives and policies to ease restrictions, as well as the resilience of the COVID-19 virus itself. We are well prepared for a protracted period of severe dislocation and will continue to support our clients and employees and to manage our risk, capital and liquidity with that view in mind.

We said in February that if income grows more slowly due to exogenous factors then so must our costs. We are acting to manage our costs prudently while doing everything we can to protect jobs. And while the decision to cancel last year's final dividend and not consider an interim dividend this year was difficult, it was taken in the light of extraordinary circumstances and will ensure that we have more capital to support individuals, businesses and the communities in which we operate through these difficult times.

If we are wrong about the pace of recovery and the global economy gets back on its feet rapidly - and we are seeing encouraging early signs of that happening in China - then the actions we are taking now will make us leaner and fitter to take advantage of the opportunities that will bring.

Standard Chartered PLC - Statement of results

For the quarter ended 31 March 2020
	1Q'20	1Q'19	Change⁵
	$million	$million	%
Underlying performance
Operating income	4,327	3,813	13
Operating expenses	(2,358)	(2,415)	2
Credit impairment	(956)	(78)	nm⁶
Other impairment	154	(2)	nm⁶
Profit from associates and joint ventures	55	66	(17)
Profit before taxation	1,222	1,384	(12)
Profit attributable to ordinary shareholders ¹	810	917	(12)
Return on ordinary shareholders' tangible equity (%)	8.6	9.6	(100)bps
Cost to income ratio (%)	54.5	63.3	880bps
Statutory performance
Operating income	4,335	3,918	11
Operating expenses	(2,368)	(2,656)	11
Credit impairment	(962)	(78)	(1,133)
Goodwill impairment	(258)	-	nm⁶
Other impairment	92	(20)	560
Profit from associates and joint ventures	47	78	(40)
Profit before taxation	886	1,242	(29)
Taxation	(369)	(424)	13
Profit for the year	517	818	(37)
Profit attributable to parent company shareholders	510	808	(37)
Profit attributable to ordinary shareholders ¹	477	774	(38)
Return on ordinary shareholders' tangible equity (%)	5.1	8.1	(301)bps
Cost to income ratio (%)	54.6	67.8	1,316bps
Balance sheet and capital
Total assets	764,916	708,874	8
Total equity	50,004	51,101	(2)
Tangible equity attributable to ordinary shareholders¹	37,927	38,898	(2)
Loans and advances to customers	271,234	265,105	2
Customer accounts	422,192	377,974	12
Risk-weighted assets	272,653	268,206	2
Total capital	53,458	55,862	(4)
Net Interest Margin (%) (adjusted)	1.52	1.66	(14)bps
Advances-to-deposits ratio (%)²	61.9	66.5	(4.6)
Liquidity coverage ratio (%)	142	153	(11)
Common Equity Tier 1 ratio (%)	13.4	13.9	(0.5)
Total capital (%)	19.6	20.8	(1.2)
UK leverage ratio (%)	4.9	5.4	(0.5)
Information per ordinary share	Cents	Cents	Cents
Earnings per share - underlying³	25.4	27.7	(2.3)
- statutory³	15.0	23.4	(8.4)
Net asset value per share⁴	1,357	1,339	17
Tangible net asset value per share⁴	1,201	1,185	16
Number of ordinary shares at period end (m)	3,147	3,310	(5)

1 Profit attributable to ordinary shareholders is after the deduction of dividends payable to the holders of non-cumulative redeemable preference shares and Additional Tier 1 securities classified as equity

2 When calculating this ratio, total loans and advances to customers excludes reverse repurchase agreements and other similar secured lending, excludes approved balances held with central banks, confirmed as repayable at the point of stress and includes loans and advances to customers held at fair value through profit and loss. Total customer accounts includes customer accounts held at fair value through profit or loss.

3 Represents the underlying or statutory earnings divided by the basic weighted average number of shares

4 Calculated on period end net asset value, tangible net asset value and number of shares

5 Variance is better/(worse) other than assets, liabilities and risk-weighted assets

6 Not meaningful

Standard Chartered PLC - Table of Contents

Performance highlights		1
Summary of results		2
Group Chief Financial Officer's review		4
Client segment reviews		11
Regional reviews		17
Supplementary information		22
	Capital Review	22
	Financial Statements	26
	Supplementary financial information	31
Shareholder information		38

Forward-looking statements

This document may contain 'forward-looking statements' that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'continue' or other words of similar meaning.

By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. The factors that could cause actual results to differ materially from those described in the forward-looking statements include (but are not limited to) changes in global, political, economic, business, competitive, market and regulatory forces or conditions, future exchange and interest rates, changes in tax rates, future business combinations or dispositions and other factors specific to the Group. Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Group and should not be taken as a representation that such trends or activities will continue in the future.

No statement in this document is intended to be a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please refer to the Company's latest Annual Report for a discussion of certain of the risks and factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter.

This information will be available on the Group's website at www.sc.com

Standard Chartered PLC - Group Chief Financial Officer's review

'Our actions over recent years to secure our foundations have prepared us well to manage our way through this crisis'

Summary of financial performance

	1Q'20	1Q'19	Change	Constant currency change¹	4Q'19	Change
	$million	$million	%	%	$million	%
Net interest income	1,842	1,920	(4)		1,899	(3)
Other income	2,485	1,893	31		1,698	46
Underlying operating income	4,327	3,813	13	15	3,597	20
Other operating expenses	(2,358)	(2,415)	2	1	(2,592)	9
UK bank levy	-	-	nm²		(347)	100
Underlying operating expenses	(2,358)	(2,415)	2	1	(2,939)	20
Underlying operating profit before impairment and taxation	1,969	1,398	41	42	658	199
Credit impairment	(956)	(78)	nm²		(373)	(156)
Other impairment	154	(2)	nm²		(12)	nm²
Profit from associates and joint ventures	55	66	(17)		52	6
Underlying profit before taxation	1,222	1,384	(12)	(11)	325	nm²
Provision for regulatory matters	14	(186)	108		-	nm²
Restructuring	(92)	32	nm²		(117)	21
Other items	(258)	12	nm²		(14)	nm²
Statutory profit before taxation	886	1,242	(29)	(28)	194	nm²
Taxation	(369)	(424)	13		(122)	nm²
Profit for the period	517	818	(37)	(37)	72	nm²

Net interest margin (%)	1.52	1.66			1.54
Underlying return on tangible equity (%)	8.6	9.6			(0.1)
Underlying earnings per share (cents)	25.4	27.7			(0.4)
Statutory return on tangible equity (%)	5.1	8.1			(1.3)
Statutory earnings/(loss) per share (cents)	15.0	23.4			(3.9)
1 Comparisons presented on the basis of the current period's functional currency rate, ensuring like-for-like currency rates between the two periods
2 Not meaningful

Strong business momentum in the opening weeks of the year continued well into the first quarter, with almost all of the Group's products generating positive income growth overall despite the rapid spread of COVID-19 that impacted the Group's results mainly in March. Pre-provision operating profit improved significantly with income excluding the impact of a $358 million positive movement in the debit valuation adjustment (DVA) growing at a faster rate than costs. Underlying profit fell due to substantially higher credit impairment driven in part by the deteriorating macroeconomic outlook.

It is not possible to reliably quantify the impact of the spread of COVID-19 on the Group's future financial performance, but the consequences for the global economy are likely to lead to further impairments and could affect income, risk-weighted assets and possibly costs. The Group is monitoring the situation carefully and is committed to deploying its strong capital and liquidity to support its clients and the communities it operates in through the crisis.

All commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2019 on a reported currency basis, unless otherwise stated.

• Operating income grew 13 per cent including a $358 million positive movement in the DVA. Income was up 6 per cent on a constant currency basis and excluding DVA

• Net interest income decreased 4 per cent with increased volumes more than offset by a 14 basis point decrease in net interest margin. The decisions by the US Federal Reserve in March to drop its benchmark interest rate in total by 150 basis points along with actions undertaken by other central banks is estimated to have an impact of a further $600 million for the Group's income in 2020

• Other income increased 31 per cent, or 12 per cent excluding the positive impact of movements in DVA, with a particularly strong underlying performance in Financial Markets

• Operating expenses were 2 per cent lower and 1 per cent lower on a constant currency basis, with tight control of costs generating positive income-to-cost jaws of 16 per cent on a reported basis, or 6 per cent on a constant currency basis excluding DVA. The cost-to-income ratio improved 4 percentage points to 59 per cent excluding DVA

• Given the substantial economic uncertainties arising from the spread of COVID-19 and the significantly lower interest rate environment the Group is targeting total costs excluding the UK bank levy below $10 billion for full-year 2020 by implementing measures including accruing lower variable compensation, reducing and re-prioritising discretionary investment spend and pausing new hiring

• Credit impairment increased by $878 million to $956 million. Stage 1 and 2 impairments increased by $388 million, of which around half was attributable to modelled outcomes with the rest due to a management overlay to reflect deterioration in the macroeconomic outlook not captured in the modelled outcome. Impairments of stage 3 assets increased $490 million with just under half the increase related to two Corporate & Institutional Banking clients in unconnected sectors

• Other impairment was a $154 million credit, primarily driven by a reversal of previously impaired assets partially offset by impairment charges relating to aircraft

• Profit from associates and joint ventures was down 17 per cent to $55 million due to the impact of the spread of COVID-19 on the performance of China Bohai Bank

• Underlying profit before tax decreased 12 per cent. Charges relating to restructuring, provisions for regulatory matters and other items increased $194 million to $336 million, primarily relating to $249 million goodwill impairment in India due to a lower GDP growth outlook

• Taxation was $369 million on a statutory basis with an underlying effective tax rate of 30 per cent flat to prior year

• Underlying return on tangible equity declined by 100 basis points to 8.6 per cent, with the impact of reduced profits partly offset by lower tangible equity reflecting the share buy-back programmes completed since 1Q'19

Operating income by product
	1Q'20	1Q'19¹	Change	4Q'19¹	Change
	$million	$million	%	$million	%
Transaction Banking	884	960	(8)	919	(4)
Trade	260	277	(6)	259	-
Cash Management	540	600	(10)	575	(6)
Securities Services	84	83	1	85	(1)
Financial Markets	1,194	748	60	631	89
Foreign Exchange	415	298	39	264	57
Rates	378	221	71	163	132
Commodities	44	45	(2)	37	19
Credit and Capital Markets	26	140	(81)	125	(79)
Capital Structuring Distribution Group	61	82	(26)	86	(29)
DVA	305	(53)	nm²	(72)	nm²
Other Financial Markets	(35)	15	nm²	28	nm²
Corporate Finance	278	262	6	328	(15)
Lending and Portfolio Management	195	187	4	201	(3)
Wealth Management	530	465	14	415	28
Retail Products	946	951	(1)	960	(1)
CCPL and other unsecured lending	304	305	-	311	(2)
Deposits	472	494	(4)	484	(2)
Mortgage and Auto	136	129	5	130	5
Other Retail Products	34	23	48	35	(3)
Treasury	325	308	6	196	66
Other	(25)	(68)	63	(53)	53
Total underlying operating income	4,327	3,813	13	3,597	20

1 Following a reorganisation of certain clients, there has been a reclassification of balances across products. Prior periods have been restated
2 Not meaningful

Transaction Banking income was down 8 per cent, from a 10 per cent decline in Cash Management with strong liability growth more than offset by declining margins reflecting a reduced interest rate environment. Trade declined 6 per cent from lower balances while Securities Services income grew 1 per cent.

Financial Markets income grew 60 per cent or 11 per cent excluding DVA, benefiting from heightened market volatility, wider spreads and increased hedging and investment activity by clients. There was strong double-digit growth in Rates and Foreign Exchange partly offset by declines in Credit and Capital Markets and in the Capital Structuring Distribution Group.

Corporate Finance income grew 6 per cent reflecting completion of prior year pipeline activity and increased balances from drawdowns on revolving credit facilities.

Lending and Portfolio Management income was up 4 per cent with improved margins and increased volumes in Corporate Lending.

Wealth Management income grew 14 per cent with online sales more than offsetting lower branch sales from reduced branch walk-ins due to COVID-19 related social distancing, with particularly strong performance in FX and fixed income sales.

Retail Products income was down 1 per cent on a reported basis and up 1 per cent on a constant currency basis with a 4 per cent decline in Deposits from lower margins partly offset by a 5 per cent increase in Mortgages and Auto benefiting from increased volumes and margins.

Treasury income grew 6 per cent with increased Treasury Markets realisation gains from the sale of longer-dated securities as bond yields fell partly offset by a $38 million unfavourable movement in hedge ineffectiveness and reduced interest income on deployed assets within Treasury Markets.

Profit before tax by client segment and geographic region
	1Q'20	1Q'19¹	Change	4Q'19¹	Change
	$million	$million	%	$million	%
Corporate & Institutional Banking	656	680	(4)	371	77
Retail Banking	233	290	(20)	169	38
Commercial Banking	102	187	(45)	46	122
Private Banking	37	72	(49)	(3)	nm²
Central & other items (segment)	194	155	25	(258)	175
Underlying profit before taxation	1,222	1,384	(12)	325	nm²
Greater China & North Asia	650	657	(1)	493	32
ASEAN & South Asia	367	389	(6)	23	nm²
Africa & Middle East	47	279	(83)	96	(51)
Europe & Americas	101	(32)	nm²	82	23
Central & other items (region)	57	91	(37)	(369)	115
Underlying profit before taxation	1,222	1,384	(12)	325	nm²
1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. Prior periods have been restated
2 Not meaningful

Corporate & Institutional Banking remains the largest contributor to the overall Group's profit before tax from a client segment perspective. Its profit fell 4 per cent, with strong performance in Financial Markets and the benefit of a $358 million positive movement in DVA offset by increased impairments. Retail Banking profit declined 20 per cent with income growth offset by impairments including the management overlay. Commercial Banking profit reduced 45 per cent due to increased impairments, while a non-repeat of a prior-year impairment release meant Private Banking profit was down 49 per cent. Profit in Central & other items improved 25 per cent due to higher Treasury Markets income.

Greater China & North Asia remains the largest regional contributor to the overall Group's profit before tax, with profit down just 1 per cent despite being the region most impacted by the effect of COVID-19 in the first quarter. Increased impairments were the primary drivers of the 6 per cent lower profit in ASEAN & South Asia and the 83 per cent profit decline in Africa & Middle East. Europe & Americas generated $101 million in profit, up from a $(32) million loss in the same period last year, including a $190 million positive movement in DVA. There was a 37 per cent reduction in profit in Central & other items mainly due to lower returns paid to Treasury on the equity provided to the regions from a falling interest rate environment.

Adjusted net interest income and margin


	1Q'20	1Q'19	Change¹	4Q'19	Change¹
	$million	$million	%	$million	%
Adjusted net interest income²	1,931	1,993	(3)	1,978	(2)
Average interest-earning assets	510,672	487,424	5	508,001	1
Average interest-bearing liabilities	464,549	436,862	6	457,413	2

Gross yield (%)³	2.95	3.45	(50)	3.19	(24)
Rate paid (%)³	1.57	1.99	(42)	1.83	(26)
Net yield (%)³	1.38	1.46	(8)	1.36	2
Net interest margin (%)^3.4	1.52	1.66	(14)	1.54	(2)
1 Variance is increase/(decrease) other than adjusted net interest income which is better/(worse)
2 Adjusted net interest income is statutory net interest income less funding costs for the trading book
3 Change is the basis points (bps) difference between the two periods rather than the percentage change
4 Adjusted net interest income divided by average interest-earning assets, annualised

The Group in 2019 changed its accounting policy for net interest income and the basis of preparation of its net interest margin to better reflect the underlying performance of its banking book. See notes to the financial statements in the 2019 Annual Report for further details.

Adjusted net interest income was down 2 per cent versus the prior quarter with an increase in interest-earning assets offset by lower day count and a 2 basis points reduction in net interest margin which averaged 152 basis points for the quarter:

• Average interest-earning assets increased 1 per cent in the quarter driven by an increase in Treasury Market assets. Gross yields declined 24 basis points compared to the average in the prior quarter and predominantly reflected the flow-through of declining interest rates in the second half of 2019 and those that occurred in the quarter

• Average interest-bearing liabilities increased 2 per cent driven by growth in customer accounts. The rate paid on liabilities decreased 26 basis points compared to the average in the prior quarter reflecting interest rate movements

The decisions by the US Federal Reserve in March to drop its benchmark interest rate in total by 150 basis points along with actions undertaken by other central banks is estimated to have an impact of a further $600 million for the Group's income in 2020.

Credit risk summary

Income Statement
	1Q'20	1Q'19	Change¹	4Q'19	Change¹
	$million	$million	%	$million	%
Total credit impairment	956	78	1,126	373	156
Of which stage 1 and 2	451	63	616	127	255
Of which stage 3	505	15	3,267	246	105

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

Balance sheet
	31.03.20	31.12.19	Change¹	31.03.19 ^4,5	Change¹
	$million	$million	%	$million	%
Gross loans and advances to customers²	277,444	274,306	1	271,555	2
Of which stage 1 and 2	269,675	266,908	1	263,082	3
Of which stage 3	7,769	7,398	5	8,473	(8)

Expected credit loss provisions	(6,210)	(5,783)	7	(6,450)	(4)
Of which stage 1 and 2	(1,129)	(779)	45	(804)	40
Of which stage 3	(5,081)	(5,004)	2	(5,646)	(10)

Net loans and advances to customers	271,234	268,523	1	265,105	2
Of which stage 1 and 2	268,546	266,129	1	262,278	2
Of which stage 3	2,688	2,394	12	2,827	(5)

Cover ratio of stage 3 before/after collateral (%)³	65 / 85	68 / 85	(3) / 0	67 / 86	(2) / (1)
Credit grade 12 accounts ($million)	1,453	1,605	(9)	1,376	6
Early alerts ($million)	11,461	5,271	117	4,258	169
Investment grade corporate exposures (%)³	62	61	1	62	-
1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods
2 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $2,903 million at 31 March 2020, $1,469 million at 31 December 2019 and $5,122 million at 31 March 2019
3 Change is the percentage points difference between the two points rather than the percentage change
4 Q1 2019 Stage 3 balances, provisions and cover ratios have been restated to include interest due but unpaid together with equivalent credit impairment charge
5 Stage 3 Gross Loans and Advances to Banks of $97m is not included in the table above

The Group in 2019 changed its accounting policy to report interest in suspense for stage 3 exposures. This results in an increase in gross stage 3 exposures and provisions, with no change to net stage 3 assets. Prior period balances have been restated. See notes to the financial statements in the 2019 Annual Report for further details.

Asset quality deteriorated in the quarter reflecting primarily the impact of COVID-19. The rapid spread of COVID-19 has resulted in significantly reduced economic forecasts and increased geopolitical uncertainty. The Group remains vigilant in the light of the developing situation, and reviews and stress tests of its portfolio are carried out regularly to help identify then mitigate any risks that may arise.

Credit impairment increased by $878 million compared to 1Q'19 and by $583 million compared to 4Q'19.

Stage 1 and 2 impairments increased by $388 million, of which around half was attributable to modelled outcomes and half was due to a management overlay to reflect deterioration in the macroeconomic outlook not captured in the modelled outcome.

Stage 3 impairments increased in every client segment with approximately half of the increase due to two Corporate & Institutional Banking clients in unrelated markets and sectors.

Gross stage 3 loans and advances to customers of $7.8 billion were up 5 per cent compared with 31 December 2019 primarily due to increased inflows in Corporate & Institutional Banking. These credit-impaired loans represented 2.8 per cent of gross loans and advances, an increase of 10 basis points compared with 31 December 2019.

The stage 3 cover ratio reduced to 65 per cent from 68 per cent as at 31 December 2019 as new downgrades incurred lower levels of provisions but are partially covered by collateral. The cover ratio after collateral was flat at 85 per cent.

Credit grade 12 balances decreased 9 per cent since 31 December 2019 with new inflows including the impact of sovereign downgrades more than offset by outflows to stage 3 and repayments.

Early alert accounts more than doubled to $11.5 billion compared to 31 December 2019 with all exposures in the Aviation sector put on either purely precautionary or non-purely precautionary early alert, and a particular focus on exposures in the Oil & Gas, Metals & Mining, Commodity Traders and Automobiles & Components sectors.

The proportion of investment grade corporate exposures has remained broadly stable at 62 per cent.

Restructuring and other items
	1Q'20			1Q'19
	Provision for regulatory matters	Restructuring	Other items	Provision for regulatory matters	Restructuring	Other items
	$million	$million	$million	$million	$million	$million
Operating income	-	8	-	-	105	-
Operating expenses	14	(24)	-	(186)	(55)	-
Credit impairment	-	(6)	-	-	-	-
Goodwill Impairment	-	-	(258)	-	-	-
Other impairment	-	(62)	-	-	(18)	-
Profit from associates and joint ventures	-	(8)	-	-	-	12
Profit/(loss) before taxation	14	(92)	(258)	(186)	32	12

The Group's statutory performance is adjusted for profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent and/or exceptional transactions that are significant or material in the context of the Group's normal business earnings for the period and items which management and investors would ordinarily identify separately when assessing underlying performance period-by period.

Restructuring charges of $92 million primarily reflect impairments from the Group's discontinued ship leasing and principal finance businesses. Other items of $258 million relates mainly to goodwill impairment on the Group's subsidiary in India due to a lower economic growth forecast and increases to the discount rate.

Balance sheet and liquidity
	31.03.20	31.12.19	Change¹	31.03.19	Change¹
	$million	$million	%	$million	%
Assets
Loans and advances to banks	61,323	53,549	15	59,873	2
Loans and advances to customers	271,234	268,523	1	265,105	2
Other assets	432,359	398,326	9	383,896	13
Total assets	764,916	720,398	6	708,874	8
Liabilities
Deposits by banks	25,519	28,562	(11)	32,434	(21)
Customer accounts	422,192	405,357	4	377,974	12
Other liabilities	267,201	235,818	13	247,365	8
Total liabilities	714,912	669,737	7	657,773	9
Equity	50,004	50,661	(1)	51,101	(2)
Total equity and liabilities	764,916	720,398	6	708,874	8

Advances-to-deposits ratio (%)²	61.9%	64.2%		66.5%
Liquidity coverage ratio (%)	142%	144%		153%
1 Variance is increase/(decrease)comparing current reporting period to prior reporting periods
2 The Group now excludes $9,947 million held with central banks (31.12.19: $9,109 million, 31.03.19: $10,077 million) that has been confirmed as repayable at the point of stress

The Group's balance sheet remains strong, liquid and well diversified.

• Loans and advances to customers increased 1 per cent since 31 December 2019 to $271 billion driven mainly by growth in Corporate Lending and Corporate Finance partly offset by reduced Trade balances. The increase in Corporate Lending and Corporate Finance reflects increased draw-downs on revolving credit facilities due to the effects of the emerging COVID-19 crisis in March. The weekly rate of new draw-downs subsequently reduced to around zero by the middle of April

• Customer accounts of $422 billion increased 4 per cent since 31 December 2019 with an increase in operating account balances within Cash Management and Retail Banking current accounts partly offset by a reduction in Retail Banking time deposits

• Other assets increased 9 per cent since 31 December 2019 driven by increased derivative assets and reverse repurchase agreements to support the strong growth in Financial Markets. Other liabilities increased 13 per cent from increased trading book liabilities and derivative liabilities

The advances-to-deposits ratio reduced slightly to 61.9 per cent from 64.2 per cent at 31 December 2019. The liquidity coverage ratio (LCR) was resilient, decreasing slightly from 144 per cent to 142 per cent in extremely challenging market conditions and remains well above the minimum regulatory requirement of 100 per cent. The Group was able to issue $2 billion senior unsecured debt in March which boosted LCR by 2 basis points and demonstrated its ability to access markets during stressed conditions.

Risk-weighted assets
	31.03.20	31.12.19	Change¹	31.03.19	Change¹
	$million	$million	%	$million	%
By risk type
Credit risk	223,003	215,664	3	219,117	2
Operational risk	27,803	27,620	1	27,620	1
Market risk	21,847	20,806	5	21,469	2
Total RWAs	272,653	264,090	3	268,206	2
1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

Total risk-weighted assets (RWA) increased 3 per cent or $9 billion since 31 December 2019 to $273 billion mostly as a result of the impact of economic disruption related to COVID-19

• Credit Risk RWA increased $7 billion to $223 billion reflecting the impact of economic disruption related to COVID-19 on asset growth and credit migration. Asset growth increased RWAs by $9 billion primarily from increased draw-downs on revolving credit facilities and mark-to-market movements on derivatives. Negative credit migration increased RWA by $2 billion but was more than offset by foreign currency translation reducing RWAs by $5 billion

• Operational Risk RWA increased 1 per cent primarily due to an increase in average income as measured over a rolling three-year time horizon, with higher 2019 income replacing lower 2016 income

• Market Risk RWA increased by $1 billion to $22 billion due to higher levels of Financial Markets activity with increased value at risk from historically high levels of market volatility partly offset by regulatory mitigation for back-testing exceptions

The ongoing execution of organic and inorganic RWA optimisation initiatives supports the expectation that income growth should exceed RWA growth in the medium-term despite potential short-term headwinds during the COVID-19 pandemic.

Capital base and ratios
	31.03.20	31.12.19	Change¹	31.03.19	Change¹
	$million	$million	%	$million	%
CET1 capital	36,467	36,513	-	37,184	(2)
Additional Tier 1 capital (AT1)	4,620	7,164	(36)	6,612	(30)
Tier 1 capital	41,087	43,677	(6)	43,796	(6)
Tier 2 capital	12,371	12,288	1	12,066	3
Total capital	53,458	55,965	(4)	55,862	(4)
CET1 capital ratio end point (%)²	13.4	13.8	(0.4)	13.9	(0.5)
Total capital ratio transitional (%)²	19.6	21.2	(1.6)	20.8	(1.2)
UK leverage ratio (%)²	4.9	5.2	(0.3)	5.4	(0.5)
1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods
2 Change is percentage points difference between two points rather than percentage change

The Group announced on 31 March that in response to a request from the Prudential Regulation Authority and as a consequence of the unprecedented challenges facing the world due to the COVID-19 pandemic, the board had decided after careful consideration to withdraw the recommendation to pay a final dividend for 2019 of 20 cents per ordinary share and to suspend the buy-back programme announced on 28 February 2020. Furthermore, no interim dividend on ordinary shares will be accrued, recommended or paid in 2020. The board's recommendation regarding a final dividend in 2020 will take into account the financial performance of the Group for the full year and the medium-term outlook at that time.

The board fully recognises the importance of dividends to the Group's owners. However, suspending ordinary shareholder distributions will allow the Group to maximise its support for individuals, businesses and the communities in which it operates whilst at the same time preserving strong capital ratios and investing to transform the business for the long term.

The Group is well capitalised with low leverage and high levels of loss-absorbing capacity. Its capital and liquidity metrics remain well above regulatory thresholds.

The Group had through the buy-back programme announced on 28 February 2020 spent $242 million purchasing 40 million ordinary shares of $0.50 each, representing a volume-weighted average price per share of £4.76. These shares were subsequently cancelled, reducing the total issued share capital by 1.3 per cent.

The Group on 20 April 2020 announced a revision to the purchase price to be paid for its stake in PT Bank Permata Tbk, subject to the transaction closing earlier than originally expected on or before 30 June 2020. Completion of the sale on the revised terms would generate an increase in the Group's common equity tier 1 (CET1) ratio of approximately 40 basis points.

The Group's CET1 ratio of 13.4 per cent was 45 basis points lower than as at 31 December 2019, over three percentage points above the Group's latest regulatory minimum of 10.0 per cent and still within its 13-14 per cent medium-term target range. Around 60 basis points of the reduction in the CET1 ratio is the impact on credit RWAs from asset growth and negative credit migration. FX translation reduced both reserves and RWAs and caused a net 10 basis point decline in the CET1 ratio. The $242 million share buy-back also reduced the CET1 ratio by 10 basis points. The aggregate of these movements was partly offset by an aggregate 40 basis point impact from profit accretion in the first quarter and the cancellation of the 2019 final dividend.

The Group's UK leverage ratio of 4.9 per cent was down 30 basis points compared with 31 December 2019 as a result of lower Tier 1 capital following the call of $2 billion Additional Tier 1 securities as well as growth in the leverage exposure measure. The Group's leverage ratio remains significantly above its minimum requirement of 3.7 per cent.

The UK Financial Policy Committee and the Hong Kong Monetary Authority both announced changes to the respective counter-cyclical buffer rates in response to the economic impact of COVID-19. In the period, the UK counter-cyclical rate decreased from 1 per cent to 0 per cent and in Hong Kong the rate reduced from 2 per cent to 1 per cent. Changes to these and other counter-cyclical buffer rates reduced the Group's minimum CET1 requirement from 10.2% to 10.0%. The Group continues to target a CET1 ratio of 13-14 per cent in the medium-term.

Outlook

Andy Halford

Group Chief Financial Officer

29 April 2020

For further information, please contact:

Mark Stride, Head of Investor Relations +44 (0) 20 7885 8596

Julie Gibson, Head of Media Relations +44 (0) 20 7885 2434

Underlying performance by client segment
	1Q'20
	Corporate & Institutional Banking	Retail Banking	Commercial Banking	Private Banking	Central & other items	Total
	$million	$million	$million	$million	$million	$million
Operating income	2,154	1,321	390	162	300	4,327
External	2,171	1,091	376	116	573	4,327
Inter-segment	(17)	230	14	46	(273)	-
Operating expenses	(981)	(891)	(209)	(124)	(153)	(2,358)
Operating profit before impairment losses and taxation	1,173	430	181	38	147	1,969
Credit impairment	(670)	(197)	(79)	(1)	(9)	(956)
Other impairment	153	-	-	-	1	154
Profit from associates and joint ventures	-	-	-	-	55	55
Underlying profit before taxation	656	233	102	37	194	1,222
Provision for regulatory matters	-	-	-	-	14	14
Restructuring	(62)	(3)	(14)	(2)	(11)	(92)
Goodwill impairment	-	-	-	-	(258)	(258)
Statutory profit/(loss) before taxation	594	230	88	35	(61)	886
Total assets	363,077	105,895	33,316	14,006	248,622	764,916
Of which: loans and advances to customers including FVTPL	162,303	103,831	28,599	13,848	13,037	321,618
loans and advances to customers	113,799	103,623	26,945	13,848	13,019	271,234
loans held at fair value through profit or loss	48,504	208	1,654	-	18	50,384
Total liabilities	438,347	145,414	41,449	18,205	71,497	714,912
Of which: customer accounts	276,223	142,025	38,063	18,095	8,244	482,650

	1Q'19¹
	Corporate & Institutional Banking	Retail Banking	Commercial Banking	Private Banking	Central & other items	Total
	$million	$million	$million	$million	$million	$million
Operating income	1,758	1,269	399	149	238	3,813
External	1,802	1,052	431	74	454	3,813
Inter-segment	(44)	217	(32)	75	(216)	-
Operating expenses	(1,032)	(897)	(218)	(124)	(144)	(2,415)
Operating profit before impairment losses and taxation	726	372	181	25	94	1,398
Credit impairment	(43)	(82)	6	47	(6)	(78)
Other impairment	(3)	-	-	-	1	(2)
Profit from associates and joint ventures	-	-	-	-	66	66
Underlying profit before taxation	680	290	187	72	155	1,384
Provision for regulatory matters	-	-	-	-	(186)	(186)
Restructuring	44	-	1	(2)	(11)	32
Share of profits of PT Bank Permata Tbk joint venture	-	-	-	-	12	12
Statutory profit/(loss) before taxation	724	290	188	70	(30)	1,242
Total assets	326,863	103,395	35,432	14,792	228,392	708,874
Of which: loans and advances to customers including FVTPL	154,157	101,377	31,011	14,691	12,601	313,837
loans and advances to customers	106,439	101,034	30,348	14,691	12,593	265,105
loans held at fair value through profit or loss	47,718	343	663	-	8	48,732
Total liabilities	381,080	142,978	38,099	19,360	76,256	657,773
Of which: customer accounts	231,575	139,704	35,430	19,179	6,985	432,873

1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. Prior periods have been restated
Corporate & Institutional Banking
	1Q'20	1Q'19¹	Change²	4Q'19¹	Change²
	$million	$million	%	$million	%
Operating income	2,154	1,758	23	1,692	27
Transaction Banking	673	734	(8)	703	(4)
Trade	164	173	(5)	165	(1)
Cash Management	425	478	(11)	454	(6)
Securities Services	84	83	1	84	-
Financial Markets	1,100	656	68	559	97
Foreign Exchange	362	247	47	223	62
Rates	367	210	75	158	132
Commodities	35	36	(3)	31	13
Credit and Capital Markets	15	133	(89)	121	(88)
Capital Structuring Distribution Group	57	75	(24)	75	(24)
DVA	305	(53)	nm⁴	(72)	nm⁴
Other Financial Markets	(41)	8	nm⁴	23	nm⁴
Corporate Finance	251	238	5	306	(18)
Lending and Portfolio Management	136	127	7	132	3
Other	(6)	3	nm⁴	(8)	25
Operating expenses	(981)	(1,032)	5	(1,110)	12
Operating profit before impairment losses and taxation	1,173	726	62	582	102
Credit impairment	(670)	(43)	nm⁴	(206)	nm⁴
Other impairment	153	(3)	nm⁴	(5)	nm⁴
Underlying profit before taxation	656	680	(4)	371	77
Restructuring	(62)	44	nm⁴	(28)	(121)
Statutory profit before taxation	594	724	(18)	343	73
Total assets	363,077	326,863	11	326,565	11
Of which: loans and advances to customers including FVTPL	162,303	154,157	5	153,298	6
Total liabilities	438,347	381,080	15	387,561	13
Of which: customer accounts	276,223	231,575	19	243,269	14
Risk-weighted assets	137,197	130,924	5	129,084	6
Underlying return on risk-weighted assets (%)³	2.0	2.1	(10)bps	1.1	90bps
Underlying return on tangible equity (%)³	9.7	10.6	(90)bps	5.6	410bps
Cost to income ratio (%)⁵	45.5	58.7	13.2	65.6	20.1

1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. Prior periods have been restated
2 Variance is better/(worse) other than risk weighted assets, assets and liabilities which is increase/(decrease)
3 Change is the basis points (bps) difference between the two periods rather than the percentage change
4 Not meaningful
5 Change is the percentage points difference between the two periods rather than the percentage change

Retail Banking
	1Q'20	1Q'19¹	Change²	4Q'19¹	Change²
	$million	$million	%	$million	%
Operating income	1,321	1,269	4	1,260	5
Transaction Banking	5	4	25	5	-
Trade	5	4	25	5	-
Wealth Management	414	370	12	341	21
Retail Products	898	895	-	906	(1)
CCPL and other unsecured lending	304	305	-	311	(2)
Deposits	431	446	(3)	440	(2)
Mortgage and Auto	129	121	7	119	8
Other Retail Products	34	23	48	36	(6)
Other	4	-	nm⁴	8	(50)
Operating expenses	(891)	(897)	1	(993)	10
Operating profit before impairment losses and taxation	430	372	16	267	61
Credit impairment	(197)	(82)	(140)	(100)	(97)
Other impairment	-	-	nm⁴	2	(100)
Underlying profit before taxation	233	290	(20)	169	38
Restructuring	(3)	-	nm⁴	(54)	94
Statutory profit before taxation	230	290	(21)	115	100
Total assets	105,895	103,395	2	109,368	(3)
Of which: loans and advances to customers including FVTPL	103,831	101,377	2	107,137	(3)
Total liabilities	145,414	142,978	2	148,413	(2)
Of which: customer accounts	142,025	139,704	2	144,760	(2)
Risk-weighted assets	44,002	42,124	4	44,508	(1)
Underlying return on risk-weighted assets (%)³	2.1	2.8	(70)bps	1.5	60bps
Underlying return on tangible equity (%)³	10.4	13.7	(330)bps	7.5	290bps
Cost to income ratio (%)⁵	67.4	70.7	3.3	78.8	11.4

1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. Prior periods have been restated
2 Variance is better/(worse) other than risk weighted assets, assets and liabilities which is increase/(decrease)
3 Change is the basis points (bps) difference between the two periods rather than the percentage change
4 Not meaningful
5 Change is the percentage points difference between the two periods rather than the percentage change

Commercial Banking
	1Q'20	1Q'19¹	Change²	4Q'19¹	Change²
	$million	$million	%	$million	%
Operating income	390	399	(2)	375	4
Transaction Banking	206	222	(7)	211	(2)
Trade	91	100	(9)	89	2
Cash Management	115	122	(6)	121	(5)
Securities Services	-	-	nm⁴	1	(100)
Financial Markets	94	92	2	72	31
Foreign Exchange	53	51	4	41	29
Rates	11	11	-	5	120
Commodities	9	9	-	6	50
Credit and Capital Markets	11	7	57	4	175
Capital Structuring Distribution Group	4	7	(43)	11	(64)
Other Financial Markets	6	7	(14)	5	20
Corporate Finance	27	24	13	22	23
Lending and Portfolio Management	59	60	(2)	69	(14)
Wealth Management	-	1	(100)	-	nm⁴
Retail Products	2	1	100	1	100
Deposits	2	1	100	1	100
Other	2	(1)	nm⁴	-	nm⁴
Operating expenses	(209)	(218)	4	(264)	21
Operating profit before impairment losses and taxation	181	181	-	111	63
Credit impairment	(79)	6	nm⁴	(65)	(22)
Underlying profit before taxation	102	187	(45)	46	122
Restructuring	(14)	1	nm⁴	(11)	(27)
Statutory profit before taxation	88	188	(53)	35	151
Total assets	33,316	35,432	(6)	33,978	(2)
Of which: loans and advances to customers including FVTPL	28,599	31,011	(8)	29,420	(3)
Total liabilities	41,449	38,099	9	41,628	-
Of which: customer accounts	38,063	35,430	7	38,847	(2)
Risk-weighted assets	31,860	34,810	(8)	30,976	3
Underlying return on risk-weighted assets (%)³	1.3	2.2	(90)bps	0.6	70bps
Underlying return on tangible equity (%)³	6.5	10.8	(430)bps	2.9	360bps
Cost to income ratio (%)⁵	53.6	54.6	1.0	70.4	16.8
1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. Prior periods have been restated
2 Variance is better/(worse) other than risk weighted assets, assets and liabilities which is increase/(decrease)
3 Change is the basis points (bps) difference between the two periods rather than the percentage change
4 Not meaningful
5 Change is the percentage points difference between the two periods rather than the percentage change


Private Banking
	1Q'20	1Q'19	Change¹	4Q'19	Change¹
	$million	$million	%	$million	%
Operating income	162	149	9	126	29
Wealth Management	116	94	23	74	57
Retail Products	46	55	(16)	53	(13)
Deposits	39	47	(17)	43	(9)
Mortgage and Auto	7	8	(13)	11	(36)
Other Retail Products	-	-	nm³	(1)	100
Other	-	-	nm³	(1)	100
Operating expenses	(124)	(124)	-	(127)	2
Operating profit/(loss) before impairment losses and taxation	38	25	52	(1)	nm³
Credit impairment	(1)	47	(102)	(2)	50
Underlying profit/(loss) before taxation	37	72	(49)	(3)	nm³
Restructuring	(2)	(2)	-	(6)	67
Statutory profit/(loss) before taxation	35	70	(50)	(9)	nm³
Total assets	14,006	14,792	(5)	14,922	(6)
Of which: loans and advances to customers including FVTPL	13,848	14,691	(6)	14,821	(7)
Total liabilities	18,205	19,360	(6)	18,480	(1)
Of which: customer accounts	18,095	19,179	(6)	18,424	(2)
Risk-weighted assets	6,529	6,398	2	6,409	2
Underlying return on risk-weighted assets (%)²	2.2	4.7	(250)bps	(0.2)	240bps
Underlying return on tangible equity (%)²	10.9	23.5	(1,260)bps	(0.8)	1,170bps
Cost to income ratio (%)⁴	76.5	83.2	6.7	100.8	24.3

1 Variance is better/(worse) other than risk weighted assets, assets and liabilities which is increase/(decrease)
2 Change is the basis points (bps) difference between the two periods rather than the percentage change
3 Not meaningful
4 Change is the percentage points difference between the two periods rather than the percentage change
Central & other items (segment)
	1Q'20	1Q'19	Change¹	4Q'19	Change¹
	$million	$million	%	$million	%
Operating income	300	238	26	144	108
Treasury	325	308	6	196	66
Other	(25)	(70)	64	(52)	52
Operating expenses	(153)	(144)	(6)	(445)	66
Operating profit/(loss) before impairment losses and taxation	147	94	56	(301)	149
Credit impairment	(9)	(6)	(50)	-	nm³
Other impairment	1	1	-	(9)	111
Profit from associates and joint ventures	55	66	(17)	52	6
Underlying profit/(loss) before taxation	194	155	25	(258)	175
Provision for regulatory matters	14	(186)	108	-	nm³
Restructuring	(11)	(11)	-	(18)	39
Goodwill impairment	(258)	-	nm³	(27)	nm³
Share of profits of PT Bank Permata Tbk joint venture	-	12	(100)	13	(100)
Statutory profit/(loss) before taxation	(61)	(30)	(103)	(290)	79
Total assets	248,622	228,392	9	235,565	6
Of which: loans and advances to customers including FVTPL	13,037	12,601	3	10,078	29
Total liabilities	71,497	76,256	(6)	73,655	(3)
Of which: customer accounts	8,244	6,985	18	7,433	11
Risk-weighted assets	53,065	53,950	(2)	53,113	-
Underlying return on risk-weighted assets (%)²	1.5	1.2	30bps	(1.9)	340bps
Underlying return on tangible equity (%)²	4.5	1.7	280bps	(23.7)	2,820bps
Cost to income ratio (%) (excluding UK bank levy)	51.0	60.5	9.5	68.1	17.1

1 Variance is better/(worse) other than risk weighted assets, assets and liabilities which is increase/(decrease)
2 Change is the basis points (bps) difference between the two periods rather than the percentage change
3 Not meaningful
4 Change is the percentage points difference between the two periods rather than the percentage change

Underlying performance by region
	1Q'20
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Central & other items	Total
	$million	$million	$million	$million	$million	$million
Operating income	1,696	1,277	661	546	147	4,327
Operating expenses	(900)	(625)	(403)	(343)	(87)	(2,358)
Operating profit before impairment losses and taxation	796	652	258	203	60	1,969
Credit impairment	(198)	(451)	(211)	(102)	6	(956)
Other impairment	(1)	166	-	-	(11)	154
Profit from associates and joint ventures	53	-	-	-	2	55
Underlying profit before taxation	650	367	47	101	57	1,222
Provision for regulatory matters	-	-	-	-	14	14
Restructuring	(50)	-	(7)	(14)	(21)	(92)
Goodwill impairment	-	-	-	-	(258)	(258)
Statutory profit/(loss) before taxation	600	367	40	87	(208)	886
Total assets	296,189	160,502	63,555	233,572	11,098	764,916
Of which: loans and advances to customers including FVTPL	139,571	83,022	32,338	66,687	-	321,618
loans and advances to customers	132,605	79,545	30,344	28,740	-	271,234
loans held at fair value through profit or loss	6,966	3,477	1,994	37,947	-	50,384
Total liabilities	256,034	141,713	37,875	238,508	40,782	714,912
Of which: customer accounts	207,311	104,933	30,059	140,347	-	482,650

	1Q'19
	Greater China & North Asia		ASEAN & South Asia		Africa & Middle East	Europe & Americas		Central & other items		Total
	$million		$million		$million	$million		$million		$million
Operating income	1,527		1,046		708	359		173		3,813
Operating expenses	(905)		(641)		(423)	(363)		(83)		(2,415)
Operating profit/(loss) before impairment losses and taxation	622		405		285	(4)		90		1,398
Credit impairment	(30)		(16)		(6)	(28)		2		(78)
Other impairment	-		-		-	-		(2)		(2)
Profit from associates and joint ventures	65		-		-	-		1		66
Underlying profit/(loss) before taxation	657		389		279	(32)		91		1,384
Provision for regulatory matters	-		-		-	-		(186)		(186)
Restructuring	(12)		(6)		(1)	(4)		55		32
Share of profits of PT Bank Permata Tbk joint venture	-		12		-	-		-		12
Statutory profit/(loss) before taxation	645		395		278	(36)		(40)		1,242
Total assets	271,407		154,041		59,749	211,406		12,271		708,874
Of which: loans and advances to customers including FVTPL	134,803		85,395		31,344	62,295		-		313,837
Total liabilities	232,395		132,198		37,969	220,046		35,165		657,773
Of which: customer accounts	186,819		100,257		30,944	114,853		-		432,873

Greater China & North Asia
		1Q'20		1Q'19		Change¹		4Q'19		Change¹
		$million		$million		%		$million		%
Operating income		1,696		1,527		11		1,497		13
Operating expenses		(900)		(905)		1		(1,001)		10
Operating profit before impairment losses and taxation		796		622		28		496		60
Credit impairment		(198)		(30)		nm²		(54)		nm²
Other impairment		(1)		-		nm²		-		nm²
Profit from associates and joint ventures		53		65		(18)		51		4
Underlying profit before taxation		650		657		(1)		493		32
Restructuring		(50)		(12)		nm²		(84)		40
Statutory profit before taxation		600		645		(7)		409		47
Total assets		296,189		271,407		9		277,704		7
Of which: loans and advances to customers including FVTPL		139,571		134,803		4		139,977		-
Total liabilities		256,034		232,395		10		249,004		3
Of which: customer accounts		207,311		186,819		11		204,286		1
Risk-weighted assets		88,654		82,669		7		85,695		3
Cost to income ratio (%)		53.1		59.3		6.2		66.9		13.8
1 Variance is better/(worse) other than assets and liabilities which is increase/(decrease)
2 Not meaningful
3 Change is the percentage points difference between the two periods rather than the percentage change

ASEAN & South Asia
		1Q'20		1Q'19		Change¹	4Q'19		Change¹
		$million		$million		%	$million		%
Operating income		1,277		1,046		22	992		29
Operating expenses		(625)		(641)		2	(718)		13
Operating profit before impairment losses and taxation		652		405		61	274		138
Credit impairment		(451)		(16)		nm²	(250)		(80)
Other impairment		166		-		nm²	(1)		nm²
Underlying profit before taxation		367		389		(6)	23		nm²
Restructuring		-		(6)		100	(19)		100
Share of profits of PT Bank Permata Tbk joint venture		-		12		(100)	13		(100)
Statutory profit before taxation		367		395		(7)	17		nm²
Total assets		160,502		154,041		4	149,785		7
Of which: loans and advances to customers including FVTPL		83,022		85,395		(3)	80,885		3
Total liabilities		141,713		132,198		7	126,213		12
Of which: customer accounts		104,933		100,257		5	97,459		8
Risk-weighted assets		89,100		92,780		(4)	88,942		-
Cost to income ratio (%)		48.9		61.3		12.4	72.4		23.5
1 Variance is better/(worse) other than assets and liabilities which is increase/(decrease)
2 Not meaningful
3 Change is the percentage points difference between the two periods rather than the percentage change

Africa & Middle East
		1Q'20		1Q'19		Change¹		4Q'19		Change¹
		$million		$million		%		$million		%
Operating income		661		708		(7)		605		9
Operating expenses		(403)		(423)		5		(454)		11
Operating profit before impairment losses and taxation		258		285		(9)		151		71
Credit impairment		(211)		(6)		nm²		(56)		nm²
Other impairment		-		-		nm²		1		(100)
Underlying profit before taxation		47		279		(83)		96		(51)
Restructuring		(7)		(1)		nm²		(11)		36
Statutory profit before taxation		40		278		(86)		85		(53)
Total assets		63,555		59,749		6		59,828		6
Of which: loans and advances to customers including FVTPL		32,338		31,344		3		31,487		3
Total liabilities		37,875		37,969		-		36,144		5
Of which: customer accounts		30,059		30,944		(3)		29,280		3
Risk-weighted assets		51,414		54,837		(6)		49,244		4
Cost to income ratio (%)		61.0		59.7		(1.3)		75.0		14.0
1 Variance is better/(worse) other than assets and liabilities which is increase/(decrease)
2 Not meaningful
3 Change is the percentage points difference between the two periods rather than the percentage change

Europe & Americas
		1Q'20		1Q'19		Change¹		4Q'19		Change¹
		$million		$million		%		$million		%
Operating income		546		359		52		464		18
Operating expenses		(343)		(363)		6		(365)		6
Operating profit/(loss) before impairment losses and taxation		203		(4)		nm²		99		105
Credit impairment		(102)		(28)		nm²		(17)		nm²
Underlying profit/(loss) before taxation		101		(32)		nm²		82		23
Restructuring		(14)		(4)		nm²		(13)		(8)
Statutory profit/(loss) before taxation		87		(36)		nm²		69		26
Total assets		233,572		211,406		10		220,579		6
Of which: loans and advances to customers including FVTPL		66,687		62,295		7		62,405		7
Total liabilities		238,508		220,046		8		218,794		9
Of which: customer accounts		140,347		114,853		22		121,708		15
Risk-weighted assets		45,944		40,627		13		43,945		5
Cost to income ratio (%)		62.8		101.1		38.3		78.7		15.9
1 Variance is better/(worse) other than assets and liabilities which is increase/(decrease)
2 Not meaningful
3 Change is the percentage points difference between the two periods rather than the percentage change

Central & other items (region)
		1Q'20		1Q'19		Change¹		4Q'19		Change¹
		$million		$million		%		$million		%
Operating income		147		173		(15)		39		nm²
Operating expenses		(87)		(83)		(5)		(401)		78
Operating profit/(loss) before impairment losses and taxation		60		90		(33)		(362)		117
Credit impairment		6		2		200		4		50
Other impairment		(11)		(2)		nm²		(12)		8
Profit from associates and joint ventures		2		1		100		1		100
Underlying profit/(loss) before taxation		57		91		(37)		(369)		115
Provision for regulatory matters		14		(186)		108		-		nm²
Restructuring		(21)		55		(138)		10		nm²
Goodwill impairment		(258)		-		nm²		(27)		nm²
Statutory profit/(loss) before taxation		(208)		(40)		nm²		(386)		46
Total assets		11,098		12,271		(10)		12,502		(11)
Total liabilities		40,782		35,165		16		39,582		3
Risk-weighted assets		(2,459)		(2,707)		9		(3,736)		34
Cost to income ratio (%) (excluding UK bank levy)		59.2		48.0		(11.2)		138.5		79.3
1 Variance is better/(worse) other than assets and liabilities which is increase/(decrease)
2 Not meaningful
3 Change is the percentage points difference between the two periods rather than the percentage change

Underlying performance by key market
	1Q'20
	Hong Kong	Korea	China	Singapore	India	Indonesia	UAE	UK	US
	$million	$million	$million	$million	$million	$million	$million	$million	$million
Operating income	957	322	275	375	409	144	159	330	171
Operating expenses	(482)	(172)	(161)	(239)	(163)	(44)	(103)	(166)	(140)
Operating profit before impairment losses and taxation	475	150	114	136	246	100	56	164	31
Credit impairment	(96)	(11)	(83)	(287)	(95)	(14)	(116)	(75)	(27)
Other impairment	(1)	-	-	-	-	-	-	-	-
Profit from associates and joint ventures	-	-	53	-	-	-	-	-	-
Underlying profit/(loss) before taxation	378	139	84	(151)	151	86	(60)	89	4
Total assets employed	167,075	58,127	36,293	90,950	31,807	5,152	22,432	148,466	73,973
Of which: loans and advances to customers including FVTPL	75,306	34,550	16,230	47,018	16,606	2,398	10,731	41,134	21,456
Total liabilities employed	149,659	50,560	29,270	90,360	21,853	3,468	14,626	158,123	70,635
Of which: customer accounts	122,450	40,874	22,355	67,170	14,520	2,010	11,793	94,480	40,637
Cost to income ratio (%)	50.4	53.4	58.5	63.7	39.9	30.6	64.8	50.3	81.9

	4Q'19
	Hong Kong	Korea	China	Singapore	India	Indonesia	UAE	UK	US
	$million	$million	$million	$million	$million	$million	$million	$million	$million
Operating income	943	220	206	347	275	57	140	214	200
Operating expenses	(510)	(190)	(171)	(260)	(175)	(47)	(102)	(136)	(141)
Operating profit before impairment losses and taxation	433	30	35	87	100	10	38	78	59
Credit impairment	(53)	(3)	(14)	(47)	(181)	(7)	(32)	2	(19)
Other impairment	-	1	-	-	-	-	-	-	-
Profit from associates and joint ventures	-	-	50	-	-	-	-	-	-
Underlying profit/(loss) before taxation	380	28	71	40	(81)	3	6	80	40
Total assets employed	159,725	54,408	30,293	85,155	28,163	4,795	20,301	150,103	60,373
Of which: loans and advances to customers including FVTPL	77,277	34,469	14,772	45,951	15,674	2,098	10,406	42,179	17,038
Total liabilities employed	149,703	47,420	27,005	80,006	18,437	3,188	12,905	142,804	66,357
Of which: customer accounts	123,330	38,533	21,797	60,821	13,800	2,320	10,078	82,036	34,733
Cost to income ratio (%)	54.1	86.4	83.0	74.9	63.6	82.5	72.9	63.6	70.5

	1Q'19
	Hong Kong	Korea	China	Singapore	India	Indonesia	UAE	UK	US
	$million	$million	$million	$million	$million	$million	$million	$million	$million
Operating income	927	247	220	408	255	77	174	128	183
Operating expenses	(460)	(198)	(163)	(231)	(163)	(41)	(104)	(168)	(150)
Operating profit/(loss) before impairment losses and taxation	467	49	57	177	92	36	70	(40)	33
Credit impairment	(12)	7	(23)	34	(26)	(11)	(6)	12	(40)
Profit from associates and joint ventures	-	-	65	-	-	-	-	-	-
Underlying profit/(loss) before taxation	455	56	99	211	66	25	64	(28)	(7)
Total assets employed	155,111	50,810	31,253	83,504	32,093	5,258	20,847	151,547	51,013
Of which: loans and advances to customers including FVTPL	74,750	32,963	14,894	48,321	16,708	2,348	11,008	43,782	16,999
Total liabilities employed	134,502	44,726	26,578	81,142	22,573	3,289	13,816	165,822	46,973
Of which: customer accounts	111,919	36,409	17,953	60,464	16,999	2,045	10,572	93,395	18,280
Cost to income ratio (%)	49.6	80.2	74.1	56.6	63.9	53.2	59.8	131.3	82.0

Quarterly underlying operating income by product

	2Q'18	3Q'18	4Q'18	1Q'19¹		2Q'19¹		3Q'19¹	4Q'19¹			1Q'20
	$million	$million	$million	$million		$million		$million	$million			$million
Transaction Banking	924	936	942	960		988		975	919			884
Trade	285	277	257	277		282		282	259			260
Cash Management	553	577	604	600		619		605	575			540
Securities Services	86	82	81	83		87		88	85			84
Financial Markets	677	631	580	748		747		789	631			1,194
Foreign Exchange	280	239	232	298		304		261	264			415
Rates²	121	194	63	221		136		176	163			378
Commodities	53	38	50	45		44		39	37			44
Credit and Capital Markets²	87	48	83	140		145		167	125			26
Capital Structuring Distribution Group	92	71	91	82		74		87	86			61
DVA	4	3	46	(53)		11		14	(72)			305
Other Financial Markets	40	38	15	15		33		45	28			(35)
Corporate Finance³	273	268	370	262		272		281	328			278
Lending and Portfolio Management	202	179	181	187		197		201	201			195
Wealth Management	452	465	343	465		511		488	415			530
Retail Products	953	929	925	951		976		975	960			946
CCPL and other unsecured lending	345	320	294	305		320		315	311			304
Deposits	431	476	481	494		501		510	484			472
Mortgage and Auto	156	114	127	129		129		123	130			136
Other Retail Products	21	19	23	23		26		27	35			34
Treasury	338	342	253	308		251		335	196			325
Other	(43)	(26)	1	(68)		(59)		(66)	(53)			(25)
Total underlying operating income	3,776	3,724	3,595	3,813		3,883		3,978	3,597			4,327

1 Following a reorganisation of certain clients, there has been a reclassification of balances across products. Prior periods have been restated from 1Q'19
2 Following a reorganisation of certain product teams within Financial Markets, $46 million of income that was in H1 2018 reported within Credit and Capital Markets has been transferred to Rates during Q3 2018. Prior periods have not been restated.
3 In Dec 2018 it was decided to discontinue the ship operating lease business any future profits and losses will be reported as restructuring. Prior periods have not been restated.
Capital ratios
					1Q'20			4Q'19			1Q'19
CET1					13.4%			13.8%			13.9%
Tier 1 capital					15.1%			16.5%			16.3%
Total capital					19.6%			21.2%			20.8%

CRD IV Capital base¹
					1Q'20			4Q'19			1Q'19
					$million			$million			$million
CET1 instruments and reserves
Capital instruments and the related share premium accounts					5,564			5,584			5,627
Of which: share premium accounts					3,989			3,989			3,975
Retained earnings					26,045			24,044			26,312
Accumulated other comprehensive income (and other reserves)					10,781			11,685			11,867
Non-controlling interests (amount allowed in consolidated CET1)					483			723			678
Independently reviewed interim and year-end profits					510			2,301			809
Foreseeable dividends net of scrip					(283)			(871)			(910)
CET1 capital before regulatory adjustments					43,100			43,466			44,383
CET1 regulatory adjustments
Additional value adjustments (prudential valuation adjustments)					(604)			(615)			(623)
Intangible assets (net of related tax liability)					(4,899)			(5,318)			(5,200)
Deferred tax assets that rely on future profitability (excludes those arising from temporary differences)					(133)			(129)			(107)
Fair value reserves related to net losses on cash flow hedges					130			59			17
Deduction of amounts resulting from the calculation of excess expected loss					(573)			(822)			(899)
Net gains on liabilities at fair value resulting from changes in own Credit Risk					(150)			(2)			(186)
Defined-benefit pension fund assets					(55)			(26)			(35)
Fair value gains arising from the institution's own Credit Risk related to derivative liabilities					(298)			(38)			(80)
Exposure amounts which could qualify for risk weighting of 1250%					(51)			(62)			(86)
of which: securitisation positions					(34)			(57)			(79)
of which: free deliveries					(17)			(5)			(7)
Total regulatory adjustments to CET1					(6,633)			(6,953)			(7,199)
CET1 capital					36,467			36,513			37,184
AT1 capital instruments					4,640			7,184			6,632
AT1 regulatory adjustments					(20)			(20)			(20)
Tier 1 capital					41,087			43,677			43,796

Tier 2 capital instruments					12,401			12,318			12,096
Tier 2 regulatory adjustments					(30)			(30)			(30)
Tier 2 capital					12,371			12,288			12,066
Total capital					53,458			55,965			55,862
Total risk-weighted assets (unaudited)					272,653			264,090			268,206
1 CRD IV capital is prepared on the regulatory scope of consolidation

Movement in total capital
							1Q'20			4Q'19
							$million			$million
CET1 at 1 January							36,513			36,717
Ordinary shares issued in the period and share premium							-			25
Share buy-back¹							(231)			(1,006)
Profit for the period							510			2,301
Foreseeable dividends net of scrip deducted from CET1							(283)			(871)
Difference between dividends paid and foreseeable dividends³							838			(641)
Movement in goodwill and other intangible assets							419			(172)
Foreign currency translation differences							(926)			(180)
Non-controlling interests							(240)			37
Movement in eligible other comprehensive income							(306)			284
Deferred tax assets that rely on future profitability							(4)			(14)
Decrease/(increase) in excess expected loss							249			53
Additional value adjustments (prudential valuation adjustment)							11			(51)
IFRS 9 day one transitional impact on regulatory reserves							(63)			(43)
Exposure amounts which could qualify for risk weighting							11			61
Other²							(31)			13
CET1 at 31 March/31 December							36,467			36,513

AT1 at 1 January							7,164			6,684
Issuances net of redemptions							(1,987)			552
Foreign currency translation difference							(15)			9
Excess on AT1 grandfathered limit (ineligible)							(542)			(81)
AT1 at 31 March/31 December							4,620			7,164

Tier 2 capital at 1 January							12,288			12,295
Regulatory amortisation							(298)			-1,111
Issuances net of redemptions							-			1,000
Foreign currency translation difference							(146)			(12)
Tier 2 ineligible minority interest							(17)			31
Recognition of ineligible AT1							542			81
Other							2			4
Tier 2 capital at 31 March/31 December							12,371			12,288
Total capital at 31 March/31 December							53,458			55,965

1 $231 million share buy-back including expenses completed before the announcement of suspension of the programme (2019 share buy-back programme:$1,006 million)
2 Mainly includes defined benefit pension fund assets
3 Of which in 1Q'20 $638 million relates to cancelled final ordinary dividend for 2019
Risk-weighted assets by business
	31.03.2020
	Credit Risk	Operational Risk	Market Risk	Total risk
	$million	$million	$million	$million
Corporate & Institutional Banking	102,316	13,153	21,728	137,197
Retail Banking	36,427	7,575	-	44,002
Commercial Banking	29,050	2,810	-	31,860
Private Banking	5,766	763	-	6,529
Central & other items	49,444	3,502	119	53,065
Total risk-weighted assets	223,003	27,803	21,847	272,653

	31.12.2019
	Credit Risk ¹	Operational Risk	Market Risk	Total risk¹
	$million	$million	$million	$million
Corporate & Institutional Banking	95,261	13,261	20,562	129,084
Retail Banking	37,194	7,314	-	44,508
Commercial Banking	28,350	2,626	-	30,976
Private Banking	5,681	728	-	6,409
Central & other items	49,178	3,691	244	53,113
Total risk-weighted assets	215,664	27,620	20,806	264,090
1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments, prior periods have been restated from Q1 19

	31.03.2019
	Credit Risk ¹	Operational Risk	Market Risk	Total risk¹
	$million	$million	$million	$million
Corporate & Institutional Banking	96,265	13,261	21,398	130,924
Retail Banking	34,810	7,314	-	42,124
Commercial Banking	32,184	2,626	-	34,810
Private Banking	5,670	728	-	6,398
Central & other items	50,188	3,691	71	53,950
Total risk-weighted assets	219,117	27,620	21,469	268,206
1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments, prior periods have been restated from Q1 19

Risk-weighted assets by geographic region
					31.03.2020			31.12.2019			31.03.2019
					$million			$million			$million
Greater China & North Asia					88,654			85,695			82,669
ASEAN & South Asia					89,100			88,942			92,780
Africa & Middle East					51,414			49,244			54,837
Europe & Americas					45,944			43,945			40,627
Central & other items					(2,459)			(3,736)			(2,707)
Total risk-weighted assets					272,653			264,090			268,206
Movement in risk-weighted assets
	Credit Risk
	Corporate & Institutional Banking	Retail Banking	Commercial Banking	Private Banking		Central & other items	Total		Operational Risk	Market Risk		Total risk
	$million	$million	$million	$million		$million	$million		$million	$million		$million
As at 1 January 2019	96,954	35,545	27,711	5,103		45,825	211,138		28,050	19,109		258,297
Assets (decline)/growth	1,303	1,020	(557)	528		4,093	6,387		-	-		6,387
Net credit migration	2,565	832	(642)	8		607	3,370		-	-		3,370
Risk-weighted assets efficiencies	(1,112)	(33)	(403)	-		(2,404)	(3,952)		-	-		(3,952)
Model, methodology and policy changes	(904)	(7)	-	-		1,400	489		-	500		989
Disposals	(397)	-	(441)	-		-	(838)		-	-		(838)
Foreign currency translation	(182)	(219)	(228)	42		(343)	(930)		-	-		(930)
Other non-credit risk movements	-	-	-	-		-	-		(430)	1,197		767
As at 31 December 2019	98,227	37,138	25,440	5,681		49,178	215,664		27,620	20,806		264,090
As at 1 January 2020 ¹	95,261	37,194	28,350	5,681		49,178	215,664		27,620	20,806		264,090
Assets (decline)/growth	6,194	(38)	1,181	182		1,565	9,084		-	-		9,084
Net credit migration	1,765	48	(22)	(1)		229	2,019		-	-		2,019
Risk-weighted assets efficiencies	156	-	58	-		-	214		-	-		214
Model, methodology and policy changes	667	304	-	-		-	971		-	(1,200)		(229)
Disposals	-	-	-	-		-	-		-	-		-
Foreign currency translation	(1,727)	(1,081)	(517)	(96)		(1,528)	(4,949)		-	-		(4,949)
Other non-credit risk movements	-	-	-	-		-	-		183	2,241		2,424
As at 31 March 2020	102,316	36,427	29,050	5,766		49,444	223,003		27,803	21,847		272,653
1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. 1 January 2020 balances have been restated.

UK leverage ratio
					1Q'20			4Q'19			1Q'19
					$million			$million			$million
Tier 1 capital (transitional)					41,087			43,677			43,796
Additional Tier 1 capital subject to phase out					(1,114)			(1,671)			(1,671)
Tier 1 capital (end point)					39,973			42,006			42,125
Derivative financial instruments					66,757			47,212			44,008
Derivative cash collateral					13,070			9,169			9,943
Securities financing transactions (SFTs)					70,269			60,414			69,992
Loans and advances and other assets					614,820			603,603			584,931
Total on-balance sheet assets					764,916			720,398			708,874
Regulatory consolidation adjustments¹					(42,178)			(31,485)			(35,955)
Derivatives adjustments								-			-
Derivatives netting					(39,400)			(32,852)			(30,575)
Adjustments to cash collateral					(23,381)			(11,853)			(13,651)
Net written credit protection					1,618			1,650			1,649
Potential future exposure on derivatives					34,961			32,961			31,418
Total derivatives adjustments					(26,202)			(10,094)			(11,159)
Counterparty risk leverage exposure measure for SFTs					10,380			7,005			12,446
Off-balance sheet items					122,763			122,341			113,684
Regulatory deductions from Tier 1 capital					(6,184)			(6,913)			(6,933)
UK leverage exposure (end point)					823,495			801,252			780,957
UK leverage ratio (end point)					4.9%			5.2%			5.4%
UK leverage exposure quarterly average					829,542			816,244			771,650
UK leverage ratio quarterly average					4.9%			5.1%			5.4%
Countercyclical leverage ratio buffer					0.1%			0.1%			0.1%
G-SII additional leverage ratio buffer					0.4%			0.4%			0.4%
1 Includes adjustment for qualifying central bank claims

Condensed consolidated interim income statement

For the three months ended 31 March 2020

	3 months ended	3 months ended
	1Q'20	1Q'19
	$million	$million
Interest income	3,746	4,141¹
Interest expense	(1,907)	(2,236)¹
Net interest income	1,839	1,905
Fees and commission income	1,010	1,035
Fees and commission expense	(148)	(125)
Net fee and commission income	862	910
Net trading income	1,138	938¹
Other operating income	496	165
Operating income	4,335	3,918
Staff costs	(1,633)	(1,762)
Premises costs	(90)	(126)
General administrative expenses	(347)	(530)
Depreciation and amortisation	(298)	(238)
Operating expenses	(2,368)	(2,656)
Operating profit before impairment losses and taxation	1,967	1,262
Credit impairment	(962)	(78)
Goodwill impairment	(258)	-
Other impairment	92	(20)
Profit from associates and joint ventures	47	78
Profit before taxation	886	1,242
Taxation	(369)	(424)
Profit for the quarter	517	818

Profit attributable to:
Non-controlling interests	7	10
Parent company shareholders	510	808
Profit for the quarter	517	818

	cents	cents
Earnings per share:
Basic earnings per ordinary share	15.0	23.4
Diluted earnings per ordinary share	14.8	23.1

1 Restated due to change in accounting policy

Condensed consolidated interim statement of comprehensive income

For the three months ended 31 March 2020

	3 months ended	3 months ended
	1Q'20	1Q'19
	$million	$million
Profit for the quarter	517	818
Other comprehensive income/(loss)
Items that will not be reclassified to income statement:	253	(222)
Own credit gains/(losses) on financial liabilities designated at fair value through profit or loss	175	(261)
Equity instruments at fair value through other comprehensive income	27	5
Actuarial gain on retirement benefit obligations	83	-
Taxation relating to components of other comprehensive income	(32)	34

Items that may be reclassified subsequently to income statement:	(1,106)	203
Exchange differences on translation of foreign operations:
Net (losses)/gains taken to equity	(1,109)	54
Net gains on net investment hedges	170	16
Share of other comprehensive income from associates and joint ventures	-	(2)
Debt instruments at fair value through other comprehensive income:
Net valuation gains taken to equity	244	160
Reclassified to income statement	(326)	(6)
Net impact of expected credit losses	9	2
Cashflow hedges:
Net losses taken to equity	(104)	(18)
Reclassified to income statement	4	3
Taxation relating to components of other comprehensive income	6	(6)
Other comprehensive loss for the year, net of taxation	(853)	(19)
Total comprehensive (loss)/income for the quarter	(336)	799

Total comprehensive (loss)/income attributable to:
Non-controlling interests	(5)	3
Parent company shareholders	(331)	796
Total comprehensive (loss)/income for the quarter	(336)	799

Condensed consolidated interim balance sheet

As at 31 March 2020

	1Q'20	4Q'19
	$million	$million
Assets
Cash and balances at central banks	59,374	52,728
Financial assets held at fair value through profit or loss	103,024	92,818
Derivative financial instruments¹	66,757	47,212
Loans and advances to banks	61,323	53,549
Loans and advances to customers	271,234	268,523
Investment securities	136,332	143,731
Other assets¹	48,309	42,022
Current tax assets	729	539
Prepayments and accrued income	2,461	2,700
Interests in associates and joint ventures	1,951	1,908
Goodwill and intangible assets	4,890	5,290
Property, plant and equipment	6,080	6,220
Deferred tax assets	828	1,105
Assets classified as held for sale	1,624	2,053
Total assets	764,916	720,398

Liabilities
Deposits by banks	25,519	28,562
Customer accounts	422,192	405,357
Repurchase agreements and other similar secured borrowing	4,357	1,935
Financial liabilities held at fair value through profit or loss	78,573	66,974
Derivative financial instruments¹	64,903	48,484
Debt securities in issue	51,220	53,025
Other liabilities¹	45,592	41,583
Current tax liabilities	579	703
Accruals and deferred income	4,084	5,369
Subordinated liabilities and other borrowed funds	16,349	16,207
Deferred tax liabilities	721	611
Provisions for liabilities and charges	428	449
Retirement benefit obligations	387	469
Liabilities included in disposal groups held for sale	8	9
Total liabilities	714,912	669,737

Equity
Share capital and share premium account	7,058	7,078
Other reserves	10,781	11,685
Retained earnings	26,345	26,072
Total parent company shareholders' equity	44,184	44,835
Other equity instruments	5,513	5,513
Total equity excluding non-controlling interests	49,697	50,348
Non-controlling interests	307	313
Total equity	50,004	50,661
Total equity and liabilities	764,916	720,398

1 The Group has met the criteria to offset its derivative assets and liabilities and the related variation margin for trades cleared on behalf of clients with LCH SwapClear. This applies to both trades between the Group and the clients and between the Group and LCH SwapClear. The impact of this as at 31 March 2020 is a decrease in the derivative assets and derivative liabilities of $20.2bn. Prior periods have not been restated as the effect would not be material. The impact at 31 December 2019 would have been a decrease in the derivative assets and derivative liabilities of $8.7bn.

The Group has also met the criteria to derecognise initial margin for trades cleared on behalf of clients with LCH SwapClear. The impact of this as at 31 March 2020 is a decrease in other assets and other liabilities of $2.9bn. Prior periods have not been restated as the effect would not be material. The impact at 31 December 2019 would have been a decrease in other assets and other liabilities of $3.2bn.

Condensed consolidated interim statement of changes in equity

For the three months ended 31 March 2020

	Ordinary share capital and share premium account	Preference share capital and share premium account	Capital and merger reserves	Own credit adjustment reserve	Fair value through other comprehensive income reserve - debt	Fair value through other comprehensive income reserve - equity	Cash flow hedge reserve	Translation reserve	Retained earnings	Parent company shareholders' equity	Other equity instruments	Non-controlling interests	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
As at 1 January 2019	5,617	1,494	17,129¹	412	(161)	120	(10)	(5,612)	26,129	45,118	4,961	273	50,352
Profit after tax	-	-	-	-	-	-	-	-	2,303	2,303	-	37	2,340
Other comprehensive (loss)/income	-	-	-	(410)	358	30	(49)	(180)	(132)²	(383)	-	(17)	(400)
Distributions	-	-	-	-	-	-	-	-	-	-	-	(35)	(35)
Shares issued, net of expenses³	25	-	-	-	-	-	-	-	-	25	-	-	25
Other equity instruments issued, net of expenses	-		-	-	-	-	-	-	-	-	552	-	552
Net treasury shares adjustment	-	-	-	-	-	-	-	-	(199)	(199)	-	-	(199)
Share option expense, net of taxation	-	-	-	-	-	-	-	-	139	139	-	-	139
Dividends on ordinary shares	-	-	-	-	-	-	-	-	(720)	(720)	-	-	(720)
Dividends on preference shares and AT1 securities	-	-	-	-	-	-	-	-	(448)	(448)	-	-	(448)
Share buy-back⁴	(58)	-	58	-	-	-	-	-	(1,006)	(1,006)	-	-	(1,006)
Other movements	-	-	-	-	-	-	-	-	6⁵	6	-	55⁶	61
As at 31 December 2019	5,584	1,494	17,187	2	197	150	(59)	(5,792)	26,072	44,835	5,513	313	50,661
Profit after tax	-	-	-	-	-	-	-	-	510	510	-	7	517
Other comprehensive income/(loss)	-	-	-	148	(96)	21	(71)	(926)	83²	(841)	-	(12)	(853)
Distributions	-	-	-	-	-	-	-	-	-	-	-	(1)	(1)
Net treasury shares adjustment	-	-	-	-	-	-	-	-	(92)	(92)	-	-	(92)
Share option expense, net of taxation	-	-	-	-	-	-	-	-	36	36	-	-	36
Dividends on ordinary shares	-	-	-	-	-	-	-	-	-	-	-	-	-
Dividend on preference shares and AT1 securities	-	-	-	-	-	-	-	-	(33)	(33)	-	-	(33)
Share buy-back⁷	(20)	-	20	-	-	-	-	-	(231)	(231)	-	-	(231)
As at 31 March 2020	5,564	1,494	17,207	150	101	171	(130)	(6,718)	26,345	44,184	5,513	307	50,004

1 Comprises capital reserve of $5 million, capital redemption reserve of $13 million and merger reserve of $17,111 million

2 Includes actuarial gain, net of taxation, $83 million (actuarial loss $129 million for the year ending 31 December 2019)

3 Comprises share capital of shares issued to fulfil discretionary awards $1 million, share capital of shares issued to fulfil employee share save options $1 million and share premium of shares issued to fulfil employee Sharesave options exercised $23 million

4 On 1 May 2019, the Group commenced a share buy-back of its ordinary shares of $0.50 each up to a maximum consideration of $1,000 million. Nominal value of share purchases was $58 million for the year ended 31 December 2019 and the total consideration paid was $1,006 million which includes share buyback expenses of $6 million. The total number of shares purchased was 116,103,483 representing 3.51% of the ordinary shares in issue. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account.

5 Comprises of $10 million disposal of non-controlling interest of Phoon Huat Pte Ltd offset by $4 million withholding tax on capitalisation of revenue reserves for Standard Chartered Bank Ghana Limited

6 Comprises $72 million of non-controlling interest in SC Digital Solutions offset by $17 million disposal of non-controlling interest in Phoon Huat Pte Ltd, Sirat Holdings Limited and Ori Private Limited

7 On 28 Feb 2020, the Group announced the buy-back programme for a share buy-back of its ordinary shares of $0.50 each. Nominal value of share purchases was $20 million, and the total consideration paid was $231 million. The total number of shares purchased was 40,029,585 representing 1.25% of the ordinary shares in issue. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account. A further $10 million expense will be recognised to equity in the three months to 30 June 2020. On the 1 April 2020, the Group announced that in response to a request from the Prudential Regulation Authority and as a consequence of the unprecedented challenges facing the world due to the COVID-19 pandemic, its board had decided after careful consideration to withdraw the recommendation to pay a final dividend for 2019 of 20 cents per ordinary share and to suspend the buy-back programme.

Basis of presentation

This statement covers the results of Standard Chartered PLC together with its subsidiaries and equity accounted interest in associates and jointly controlled entities (the Group) for the three months ended 31 March 2020. The financial information on which this statement is based, and the data set out in the appendix to this statement, are unaudited and have been prepared in accordance with Standard Chartered's accounting policies. The Group's significant accounting policies are described in the Annual Report 2019.

The information in this announcement does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2019, which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006

Underlying versus Statutory Results
Profit before taxation (PBT)
	1Q'20
	Underlying	Provision for regulatory matters	Restructuring	Gains arising on repurchase of senior and subordinated liabilities	Goodwill impairment	Share of profits of PT Bank Permata Tbk joint venture	Statutory
	$million	$million	$million	$million	$million	$million	$million
Operating income	4,327	-	8	-	-	-	4,335
Operating expenses	(2,358)	14	(24)	-	-	-	(2,368)
Operating profit/(loss) before impairment losses and taxation	1,969	14	(16)	-	-	-	1,967
Credit impairment	(956)	-	(6)	-	-	-	(962)
Other impairment	154	-	(62)	-	(258)	-	(166)
Profit from associates and joint ventures	55	-	(8)	-	-	-	47
Profit/(loss) before taxation	1,222	14	(92)	-	(258)	-	886

	1Q'19
	Underlying	Provision for regulatory matters	Restructuring	Gains arising on repurchase of senior and subordinated liabilities	Goodwill impairment	Share of profits of PT Bank Permata Tbk joint venture	Statutory
	$million	$million	$million	$million	$million	$million	$million
Operating income	3,813	-	105	-	-	-	3,918
Operating expenses	(2,415)	(186)	(55)	-	-	-	(2,656)
Operating profit/(loss) before impairment losses and taxation	1,398	(186)	50	-	-	-	1,262
Credit impairment	(78)	-	-	-	-	-	(78)
Other impairment	(2)	-	(18)	-	-	-	(20)
Profit from associates and joint ventures	66	-	-	-	-	12	78
Profit/(loss) before taxation	1,384	(186)	32	-	-	12	1,242

		4Q'19
		Underlying	Provision for regulatory matters	Restructuring		Gains arising on repurchase of senior and subordinated liabilities		Goodwill impairment		Share of profits of PT Bank Permata Tbk joint venture		Statutory
		$million	$million	$million		$million		$million		$million		$million
Operating income		3,597	-	31		-		-		-		3,628
Operating expenses		(2,939)	-	(129)		-		-		-		(3,068)
Operating profit/(loss) before impairment losses and taxation		658	-	(98)		-		-		-		560
Credit impairment		(373)	-	(1)		-		-		-		(374)
Other impairment		(12)	-	(20)		-		(27)		-		(59)
Profit from associates and joint ventures		52	-	2		-		-		13		67
Profit/(loss) before taxation		325	-	(117)		-		(27)		13		194
Analysis of operating income by product and segment
The following tables provide a breakdown of the Group's underlying operating income by product and client segment.
	1Q'20
	Corporate & Institutional Banking		Retail Banking		Commercial Banking		Private Banking		Central & other items		Total
	$million		$million		$million		$million		$million		$million
Transaction Banking	673		5		206		-		-		884
Trade	164		5		91		-		-		260
Cash Management	425		-		115		-		-		540
Securities Services	84		-		-		-		-		84
Financial Markets	1,100		-		94		-		-		1,194
Foreign Exchange	362		-		53		-		-		415
Rates	367		-		11		-		-		378
Commodities	35		-		9		-		-		44
Credit and Capital Markets	15		-		11		-		-		26
Capital Structuring Distribution Group	57		-		4		-		-		61
DVA	305		-		-		-		-		305
Other Financial Markets	(41)		-		6		-		-		(35)
Corporate Finance	251		-		27		-		-		278
Lending and Portfolio Management	136		-		59		-		-		195
Wealth Management	-		414		-		116		-		530
Retail Products	-		898		2		46		-		946
CCPL and other unsecured lending	-		304		-		-		-		304
Deposits	-		431		2		39		-		472
Mortgage and Auto	-		129		-		7		-		136
Other Retail Products	-		34		-		-		-		34
Treasury	-		-		-		-		325		325
Other	(6)		4		2		-		(25)		(25)
Total underlying operating income	2,154		1,321		390		162		300		4,327


	1Q'19¹
	Corporate & Institutional Banking	Retail Banking	Commercial Banking	Private Banking	Central & other items	Total
	$million	$million	$million	$million	$million	$million
Transaction Banking	734	4	222	-	-	960
Trade	173	4	100	-	-	277
Cash Management	478	-	122	-	-	600
Securities Services	83	-	-	-	-	83
Financial Markets	656	-	92	-	-	748
Foreign Exchange	247	-	51	-	-	298
Rates	210	-	11	-	-	221
Commodities	36	-	9	-	-	45
Credit and Capital Markets	133	-	7	-	-	140
Capital Structuring Distribution Group	75	-	7	-	-	82
DVA	(53)	-	-	-	-	(53)
Other Financial Markets	8	-	7	-	-	15
Corporate Finance	238	-	24	-	-	262
Lending and Portfolio Management	127	-	60	-	-	187
Wealth Management	-	370	1	94	-	465
Retail Products	-	895	1	55	-	951
CCPL and other unsecured lending	-	305	-	-	-	305
Deposits	-	446	1	47	-	494
Mortgage and Auto	-	121	-	8	-	129
Other Retail Products	-	23	-	-	-	23
Treasury	-	-	-	-	308	308
Other	3	-	(1)	-	(70)	(68)
Total underlying operating income	1,758	1,269	399	149	238	3,813
1 Following a reorganisation of certain clients, there has been a reclassification of balances across products and client segments. Prior periods have been restated

Analysis of underlying performance by Retail Banking and Commercial Banking segments

Retail Banking
	1Q'20
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Total
	$million	$million	$million	$million	$million
Operating income	766	369	178	8	1,321
Operating expenses	(485)	(256)	(144)	(6)	(891)
Operating profit before impairment losses and taxation	281	113	34	2	430
Credit impairment	(86)	(89)	(22)	-	(197)
Underlying profit before taxation	195	24	12	2	233
Restructuring	(1)	(2)	-	-	(3)
Statutory profit before taxation	194	22	12	2	230
Loans and advances to customers including FVTPL	72,081	26,197	5,024	529	103,831
Customer accounts	96,608	35,671	8,714	1,032	142,025

	1Q'19¹
	Greater China & North Asia		ASEAN & South Asia		Africa & Middle East		Europe & Americas	Total
	$million		$million		$million		$million	$million
Operating income	745		341		174		9	1,269
Operating expenses	(485)		(258)		(149)		(5)	(897)
Operating profit before impairment losses and taxation	260		83		25		4	372
Credit impairment	(29)		(37)		(16)		-	(82)
Underlying profit before taxation	231		46		9		4	290
Restructuring	-		-		-		-	-
Statutory profit before taxation	231		46		9		4	290
Loans and advances to customers including FVTPL	67,620		27,873		5,358		526	101,377
Customer accounts	97,386		32,711		8,547		1,060	139,704
1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. Prior periods have been restated
Commercial Banking
		1Q'20
		Greater China & North Asia		ASEAN & South Asia		Africa & Middle East			Total
		$million		$million		$million			$million
Operating income		127		178		85			390
Operating expenses		(80)		(81)		(48)			(209)
Operating profit before impairment losses and taxation		47		97		37			181
Credit impairment		(35)		(38)		(6)			(79)
Underlying profit before taxation		12		59		31			102
Restructuring		(7)		-		(7)			(14)
Statutory profit before taxation		5		59		24			88
Loans and advances to customers including FVTPL		12,941		10,754		4,904			28,599
Customer accounts		22,194		12,391		3,478			38,063

	1Q'19¹
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Total
	$million	$million	$million	$million
Operating income	141	168	90	399
Operating expenses	(82)	(83)	(53)	(218)
Operating profit before impairment losses and taxation	59	85	37	181
Credit impairment	6	(1)	1	6
Underlying profit before taxation	65	84	38	187
Restructuring	1	-	-	1
Statutory profit before taxation	66	84	38	188
Loans and advances to customers including FVTPL	13,693	11,925	5,393	31,011
Customer accounts	19,827	12,158	3,445	35,430
1 Following a reorganisation of certain clients, there has been a reclassification of balances across client segments. Prior periods have been restated

Average balance sheets and yields

Average assets
	3 months ended 31.03.20
	Average non-interest earning balance	Average interest earning balance	Interest income	Gross yield of interest earning balance	Gross yield of total balance
	$million	$million	$million	%	%
Cash and balances at central banks	16,576	31,795	53	0.67	0.44
Gross loans and advances to banks	28,389	57,106	321	2.26	1.51
Gross loans and advances to customers	50,852	284,841	2,510	3.54	3.01
Impairment provisions against loans and advances to banks and customers	-	(5,692)	-	-	-
Investment securities	29,007	142,622	862	2.43	2.02
Property, plant and equipment and intangible assets	9,895	-	-	-	-
Prepayments, accrued income and other assets	103,766	-	-	-	-
Investment associates and joint ventures	2,228	-	-	-	-
Total average assets	240,713	510,672	3,746	2.95	2.01

	3 months ended 31.12.19
	Average non-interest earning balance	Average interest earning balance	Interest income	Gross yield of interest earning balance	Gross yield of total balance
	$million	$million	$million	%	%
Cash and balances at central banks	16,965	28,617	63	0.87	0.55
Gross loans and advances to banks	27,686	58,637	449	3.04	2.06
Gross loans and advances to customers	50,134	283,137	2,650	3.71	3.15
Impairment provisions against loans and advances to banks and customers	-	(4,924)	-	-	-
Investment securities	27,606	142,534	923	2.57	2.15
Property, plant and equipment and intangible assets	11,000	-	-	-	-
Prepayments, accrued income and other assets	86,929	-	-	-	-
Investment associates and joint ventures	2,706	-	-	-	-
Total average assets	223,028	508,001	4,085	3.19	2.22

	3 months ended 31.03.19
	Average non-interest earning balance	Average interest earning balance	Interest income	Gross yield of interest earning balance	Gross yield of total balance
	$million	$million	$million	%	%
Cash and balances at central banks	20,104	32,492	102	1.27	0.79
Gross loans and advances to banks	25,035	60,336	501	3.37	2.38
Gross loans and advances to customers	49,221	268,619	2,659	4.01	3.39
Impairment provisions against loans and advances to banks and customers	-	(5,060)	-	-	-
Investment securities	28,729	131,037	879	2.72	2.23
Property, plant and equipment and intangible assets	11,022	-	-	-	-
Prepayments, accrued income and other assets	87,268	-	-	-	-
Investment associates and joint ventures	2,510	-	-	-	-
Total average assets	223,889	487,424	4,141	3.45	2.36
Average liabilities
	3 months ended 31.03.20
	Average non-interest bearing balance	Average interest bearing balance	Interest expense	Rate paid on interest bearing balance	Rate paid on total balance
	$million	$million	$million	%	%
Deposits by banks	18,354	27,517	149	2.18	1.31
Customer accounts:
Current accounts and savings deposits	40,220	204,412	479	0.94	0.79
Time and other deposits	58,635	161,324	838	2.09	1.53
Debt securities in issue	8,275	54,010	245	1.82	1.58
Accruals, deferred income and other liabilities	108,023	1,246	16	5.16	0.06
Subordinated liabilities and other borrowed funds	-	16,040	180	4.51	4.51
Non-controlling interests	-	-	-	-	-
Shareholders' funds	50,023	-	-	-	-
	283,530	464,549	1,907	1.65	1.03
Adjustment for Financial Markets funding costs			(92)
Total average liabilities and shareholders' funds	283,530	464,549	1,815	1.57	0.98


	3 months ended 31.12.19
	Average non-interest bearing balance	Average interest bearing balance	Interest expense	Rate paid on interest bearing balance	Rate paid on total balance
	$million	$million	$million	%	%
Deposits by banks	19,763	25,589	169	2.62	1.48
Customer accounts:
Current accounts and savings deposits	40,142	195,227	554	1.13	0.93
Time and other deposits	58,759	166,370	974	2.32	1.72
Debt securities in issue	9,759	51,185	277	2.15	1.80
Accruals, deferred income and other liabilities	93,132	3,514	26	2.94	0.11
Subordinated liabilities and other borrowed funds	-	15,528	178	4.55	4.55
Non-controlling interests	37	-	-	-	-
Shareholders' funds	50,128	-	-	-	-
Total average liabilities and shareholders' funds	271,720	457,413	2,178	1.89	1.19

Adjustment for Financial Markets funding costs			(71)
Total average liabilities and shareholders' funds	271,720	457,413	2,107	1.83	1.15


	3 months ended 31.03.19
	Average non-interest bearing balance	Average interest bearing balance	Interest expense	Rate paid on interest bearing balance	Rate paid on total balance
	$million	$million	$million	%	%
Deposits by banks	15,311	28,490	204	2.90	1.89
Customer accounts:					-
Current accounts and savings deposits	37,159	177,102	479	1.10	0.91
Time and other deposits	59,912	166,146	1,074	2.62	1.93
Debt securities in issue	8,712	48,480	283	2.37	2.01
Accruals, deferred income and other liabilities	88,420	1,406	-	-	-
Subordinated liabilities and other borrowed funds	-	15,238	196	5.22	5.22
Non-controlling interests	36	-	-	-	-
Shareholders' funds	50,435	-	-	-	-
Total average liabilities and shareholders' funds	259,985	436,862	2,236	2.08	1.30
Adjustment for Financial Markets funding costs			(88)
Total average liabilities and shareholders' funds	259,985	436,862	2,148	1.99	1.25

Earnings per ordinary share

		1Q'20		1Q'19		Change		4Q'19		Change
		$m		$m		%		$m		%
Profit/(loss) for the period attributable to equity holders		517		818		(37)		72		nm²
Non-controlling interests		(7)		(10)		30		(7)		-
Dividend payable on preference shares and AT1 classified as equity		(33)		(34)		3		(191)		83
Profit/(loss) for the period attributable to ordinary shareholders		477		774		(38)		(126)		nm²

Items normalised:
Provision for regulatory matters		(14)		186		nm²		-		nm²
Restructuring		92		(32)		nm²		117		(21)
Profit from associates and joint ventures		-		(12)		nm²		(13)		nm²
Goodwill Impairment		258		-		nm²		27		nm²
Tax on normalised items		(3)		1		nm²		(19)		84
Underlying profit		810		917		(12)		(14)		nm²

Basic - Weighted average number of shares (millions)		3,186		3,310		nm²		3,191		nm²
Diluted - Weighted average number of shares (millions)		3,218		3,345		nm²		3,228		nm²

Basic earnings/(loss) per ordinary share (cents)		15.0		23.4		(8.4)		(3.9)		18.9
Diluted earnings/(loss) per ordinary share (cents)		14.8		23.1		(8.3)		(3.9)¹		18.7
Underlying basic earnings per ordinary share (cents)		25.4		27.7		(2.3)		(0.4)		25.9
Underlying diluted earnings per ordinary share (cents)		25.2		27.4		(2.2)		(0.4)¹		25.6
1 The impact of any diluted options has been excluded from this amount as required by IAS 33 Earnings per share
2 Not meaningful
Return on Tangible Equity

	1Q'20		1Q'19		Change		4Q'19		Change
	$m		$m		%		$m		%
Average parent company Shareholders' Equity	44,511		45,475		(2)		44,855		(1)
Less Preference share premium	(1,494)		(1,494)		-		(1,494)		-
Less Average intangible assets	(5,090)		(5,084)		-		(5,187)		2
Average Ordinary Shareholders' Tangible Equity	37,927		38,898		(2)		38,174		(1)


Profit/(loss) for the period attributable to equity holders	517		818		(37)		72		nm¹
Non-controlling interests	(7)		(10)		30		(7)		-
Dividend payable on preference shares and AT1 classified as equity	(33)		(34)		3		(191)		83
Profit/(loss) for the period attributable to ordinary shareholders	477		774		(38)		(126)		nm

Items normalised:
Provision for regulatory matters	(14)		186		nm¹		-		nm¹
Restructuring	92		(32)		nm¹		117		(21)
Profit from associates and joint ventures	-		(12)		nm¹		(13)		nm¹
Goodwill Impairment	258		-		nm¹		27		nm¹
Tax on normalised items	(3)		1		nm¹		(19)		84
Underlying profit for the period attributable to ordinary shareholders	810		917		(12)		(14)		nm¹

Underlying Return on Tangible Equity	8.6%		9.6%		(100) bps		(0.1%)		870 bps
Statutory Return on Tangible Equity	5.1%		8.1%		(300) bps		(1.3%)		640 bps
1 Not meaningful

Net Tangible Asset Value per Share

	31.03.2020	31.03.2019	Change	31.12.2019	Change
	$m	$m	%	$m	%
Parent company shareholders equity	44,185	45,831	(4)	44,837	(1)
Less Preference share premium	(1,494)	(1,494)	-	(1,494)	-
Less Intangible assets	(4,890)	(5,111)	4	(5,290)	8
Net shareholders tangible equity	37,801	39,226	(4)	38,053	(1)

Ordinary shares in issue, excluding own shares ('m)	3,147	3,310	(5)	3,191	(1)
Net Tangible Asset Value per share (c)	1,201	1,185	16.0	1,192	9

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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