Interim Results - Part 4
Standard Chartered PLC
1 August 2001
Part 4
16. Net interest margin and interest spread
6 months 6 months 6 months
ended ended ended
30.06.01 30.06.00 31.12.00
% % %
Net interest margin 3.0 3.3 3.0
Interest spread 2.5 2.5 2.4
$m $m $m
Average interest earning assets 94,928 81,904 91,238
Average interest bearing liabilities 85,105 70,890 81,620
17. Capital ratios
30.06.01 30.06.00 31.12.00
$m $m $m
Tier 1 capital 6,031 5,483 4,531
Tier 2 capital 5,114 3,994 4,531
11,145 9,477 9,062
Less supervisory adjustments (30) (45) (34)
Adjusted capital base 11,115 9,432 9,028
Risk weighted assets 53,373 47,228 50,485
Risk weighted contingents 15,138 12,004 13,981
Total risk weighted assets and 68,511 59,232 64,466
contingents
Capital ratios % % %
Tier 1 capital 8.8 9.3 7.0
Total capital 16.2 15.9 14.0
On 11 May 2001 the Group issued £300 million of 8.103 per cent Step up
Callable Perpetual Preferred Securities. The Preferred Securities are
redeemable at the option of Standard Chartered Bank on 11 May 2016 or on
any subsequent coupon payment date at their principal amount together
with any outstanding payments.
On 30 May 2001 the Group issued US$700 million of 8.0 per cent
Subordinated notes due 2031.
18. Supplementary information on Hong Kong
The following table includes the results of all the Group's activities in
Hong Kong. It has been prepared using the same principles as those used
to prepare the geographical segmental information included in note 1.
6 months 6 months 6 months
ended ended ended
30.06.01 30.06.00 31.12.00
HKDm HKDm HKDm
Net revenue 5,487 4,416 4,912
Total operating expenses (2,574) (2,029) (2,289)
Profit before provisions 2,913 2,387 2,623
Provisions for bad and doubtful (798) (403) (576)
debts
Profit before taxation 2,115 1,984 2,047
The information below is extracted from the financial information
required by the Hong Kong Monetary Authority to be disclosed by
authorised institutions incorporated outside Hong Kong. It includes
Standard Chartered Bank in Hong Kong and Manhattan Card Company. It
should be noted that definitions used by the Hong Kong Monetary Authority
differ from those used by the Group.
30.06.01 30.06.00 31.12.00
HKDm HKDm HKDm
Advances to customers (including 171,769 142,334 163,857
trade bills)
Other assets 114,675 102,602 107,466
Total assets 286,444 244,936 271,323
Analysis of advances to customers
Mortgages 89,822 79,776 88,699
Cards 16,558 7,732 15,366
Other consumer 7,392 4,041 7,069
Trade finance 8,406 10,962 8,750
Trade bills 1,992 2,533 1,990
Financial concerns 15,215 11,809 11,787
Other* 32,384 25,481 30,196
Provisions (2,537) (2,868) (2,573)
Net advances to customers 169,232 139,466 161,284
*Includes HKD 6,195 million (30.06.00: HKD 4,830 million; 31.12.00: HKD
5,710 million) reported as mortgages in note 1.
Gross non-performing advances to 5,909 7,140 6,398
customers
Suspended interest (1,087) (1,063) (1,033)
Specific provisions (2,480) (2,868) (2,573)
2,342 3,209 2,792
Gross non-performing advances as a
percentage of gross advances to 3.4% 5.0% 3.9%
customers
19. Supplementary information on Singapore
The following table includes the results of all the Group's activities in
Singapore. It has been prepared using the same principles as those used
to prepare the geographical segmental information included in note 1.
6 months 6 months 6 months
ended ended ended
30.06.01 30.06.00 31.12.00
SGDm SGDm SGDm
Net revenue 396 368 385
Total operating expenses (177) (156) (143)
Profit before provisions 219 212 242
Provisions for bad and doubtful (47) (14) (21)
debts
Profit before taxation 172 198 221
The information below is provided in the same format as the financial
information given for Hong Kong, but has been prepared using the same
definitions as those used for the Group.
30.06.01 30.06.00 31.12.00
SGDm SGDm SGDm
Advances to customers (net) 11,603 11,504 10,907
Other assets 13,593 10,885 10,710
Total assets 25,196 22,389 21,617
Analysis of advances to customers
Mortgages 5,430 4,643 4,927
Other consumer 1,380 1,439 1,459
Trade finance 774 915 883
Other 4,387 4,811 3,961
Provisions (368) (304) (323)
Net advances to customers 11,603 11,504 10,907
Gross non-performing advances to 562 584 557
customers
Suspended interest (110) (75) (91)
Specific provisions (258) (229) (232)
194 280 234
Gross non-performing advances as a
percentage of gross advances to 4.7% 4.9% 5.0%
customers
20. Supplementary information on Malaysia
The information below is derived from the 2000 Half Year and 2000 Annual
Reports of Standard Chartered Bank Malaysia Berhad which were filed with
Bank Negara Malaysia, and from the 2001 Half Year Report which will be
filed with Bank Negara Malaysia.
6 months 6 months 6 months
ended ended ended
30.06.01 30.06.00 31.12.00
MYRm MYRm MYRm
Net revenue 460 478 480
Total operating expenses (180) (171) (252)
Profit before provisions 280 307 228
Provisions for bad and doubtful (194) (12) (64)
debts
Profit before taxation 86 295 164
30.06.01 30.06.00 31.12.00
MYRm MYRm MYRm
Advances and financing (net) 12,230 11,757 12,027
Other assets 8,507 8,329 7,569
Total assets 20,737 20,086 19,596
Analysis of loans and advances and
financing
Mortgages (excluding MYR 734 million
of loans sold to Cagamas (30.06.00:
MYR 796 million; 31.12.00: MYR 763 5,983 5,104 5,504
million))
Other consumer 1,348 1,104 1,281
Trade finance 1,349 1,604 1,345
Other 4,717 4,931 4,918
Provisions (1,167) (986) (1,021)
Net advances to customers 12,230 11,757 12,027
Gross non-performing advances to 1,796 1,549 1,543
customers
Suspended interest (276) (268) (282)
Specific provisions (668) (498) (517)
852 783 744
Gross non-performing loans and
advances as a percentage of gross 12.7% 11.4% 11.2%
loans and advances
21. Supplementary information on India
The following table includes the results of all the Group's activities in
India. It has been prepared using the same principles as those used to
prepare the geographical segmental information included in note 1.
6 months 6 months 6 months
ended ended ended
30.06.01 30.06.00 31.12.00
INRm INRm INRm
Net revenue 7,998 3,783 8,460
Total operating expenses (4,923) (1,903) (4,033)
Profit before provision 3,075 1,880 4,427
Provisions for bad and doubtful (492) (743) (627)
debts
Profit before taxation 2,583 1,137 3,800
The information below is provided in the same format at the financial
information given for Hong Kong, but has been prepared using the same
definitions as those used for the Group.
30.06.01 30.06.00 31.12.00
INRm INRm INRm
Advances to customers (net) 89,367 46,447 82,119
Other assets 150,356 42,543 125,406
Total assets 239,723 88,990 207,525
Analysis of advances to customers
Mortgages 5,824 591 4,888
Other consumer 31,630 21,164 32,172
Trade finance 13,789 7,669 16,537
Other 43,901 20,298 34,504
Provisions (5,777) (3,275) (5,982)
Net advances to customers 89,367 46,447 82,119
Gross non-performing advances to 7,870 4,475 7,514
customers
Suspended interest (1,897) (871) (1,588)
Specific provisions (3,880) (2,404) (4,394)
2,093 1,200 1,532
Gross non-performing advances as a
percentage of gross advances to 8.3% 9.0% 8.5%
customers
22. Selected information in sterling
The information in this note provides a convenience translation of the
Group's results in pounds sterling. Profits and losses for the six months
ended 30 June 2001 have been translated from US dollar using the average
sterling exchange rate during that period, whilst assets and liabilities
have been translated at the rate of exchange ruling on 30 June 2001. Prior
period comparatives are as previously reported.
- Profit before taxation up 27 per cent to £452 million from £356 million
to 30 June 2000 (31 December 2000: £593 million).
- Operating profit before goodwill and restructuring up 34 per cent to £499
million from £372 million to 30 June 2000 (31 December 2000: £486 million).
- Net revenue up 21 per cent to £1,519 million from 30 June 2000 (£1,254
million) and up 5 per cent from 31 December 2000 (£1,444 million).
- Ongoing costs excluding goodwill and restructuring (£833 million) up 16
per cent from 30 June 2000 (£718 million) and 3 per cent from 31 December
2000 (£812 million).
- Provisions up 14 per cent at £187 million from 30 June 2000 (£164
million) and by 28 per cent from 31 December 2000 (£146 million).
- Normalised earnings per share up 26 per cent to 27.9 pence from 30 June
2000 (22.1 pence) and up 12 per cent from 31 December 2000 (24.8 pence).
- Interim dividend per share increased by 20 per cent to 8.902 pence.
22. Selected information in sterling (continued)
Summary of results for the six months ended 30 June 2001
6 months 6 months 6 months
ended ended ended
30.06.01 30.06.00 31.12.00
£m £m £m
RESULTS
Net revenue 1,519 1,254 1,444
Provisions for bad and doubtful
debts and contingent liabilities (187) (164) (146)
Operating profit after goodwill and
provisions but before restructuring 452 356 455
charge
Restructuring charge - - (213)
Profit on disposal of subsidiary - - 351
undertakings
Profit before taxation 452 356 593
Profit attributable to shareholders 281 231 446
BALANCE SHEET
Total assets 77,954 59,754 68,599
Shareholders funds:
Equity 4,432 3,450 4,061
Non-equity 889 200 200
Capital resources 9,257 6,349 7,371
INFORMATION PER ORDINARY SHARE Pence Pence Pence
Normalised earnings per share 27.9 22.1 24.8
Dividends per share 8.902 7.425 17.710
Net asset value per share 392.7 321.2 360.4
RATIOS % % %
Post-tax return on ordinary
shareholders funds - normalised 14.8 14.2 14.3
basis
Cost to income ratio - normalised 55.0 57.4 56.4
basis
Capital ratios:
Tier 1 capital 8.8 9.3 7.0
Total capital 16.2 15.9 14.0
22. Selected information in sterling (continued)
Consolidated profit and loss account
For the six months ended 30 June 2001
6 months 6 months 6 months
ended Ended ended
30.06.01 30.06.00 31.12.00
£m £m £m
Interest receivable 2,361 2,041 2,514
Interest payable (1,369) (1,190) (1,578)
Net interest income 992 851 936
Fees and commissions receivable, net 331 262 324
Dealing profits and exchange 173 115 134
Other operating income 23 26 50
527 403 508
Net revenue 1,519 1,254 1,444
Administrative expenses:
Staff (429) (379) (536)
Premises (104) (87) (112)
Other (242) (197) (283)
Depreciation and amortisation, of (105) (71) (125)
which:
Amortisation of goodwill (47) (16) (31)
Other (58) (55) (94)
Total expenses: - ongoing (880) (734) (843)
- restructuring - - (213)
Total operating expenses (880) (734) (1,056)
Operating profit before provisions 639 520 388
Provisions for bad and doubtful (187) (164) (141)
debts
Provisions for contingent - - (5)
liabilities and commitments
Operating profit 452 356 242
Profit on disposal of subsidiary - - 351
undertakings
Profit before taxation 452 356 593
Taxation (151) (114) (135)
Profit after taxation 301 242 458
Minority interests (equity) (4) (4) -
Minority interests (non-equity) (16) (7) (12)
Profit for the period attributable 281 231 446
to shareholders
Dividends on non-equity preference (8) (8) (8)
shares
Dividends on ordinary equity shares (102) (80) (200)
Retained profit 171 143 238
Independent review report by KPMG Audit Plc to Standard Chartered PLC
Introduction
We have been instructed by the company to review the financial information set
out on pages 14 to 32 and we have read the other information contained in the
press release and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors responsibilities
The press release, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where they are
to be changed in the next annual accounts, in which case any changes and the
reasons for them are to be disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4: Review of interim financial information issued by the Auditing
Practices Board. A review consists principally of making enquiries of Group
management and applying analytical procedures to the financial information and
underlying financial data and, based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed. A review is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly, we do not express an audit opinion on
the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2001.
KPMG Audit Plc
Chartered Accountants 1 August 2001
The financial information included herein has been derived from the audited
and unaudited information contained in the Group's Report and Accounts for the
year ended 31 December 2000. Statutory accounts for 2000 have been delivered
to the Registrar of Companies. The auditors have reported on these accounts;
their report was unqualified and did not contain a statement under Section
237(2) (accounting records or returns inadequate or accounts not agreeing with
records and returns) or 237(3) (failure to obtain necessary information and
explanation) of the Companies Act 1985.
Copies of this statement are available from Investor Relations, Standard
Chartered PLC, 1 Aldermanbury Square, London, EC2V 7SB or from our website on
www.standardchartered.com.
For further information please contact:
Pamela McGann, Group Head of External Affairs
on (020) 7280 7245; or
Tim Halford, Director of Corporate Affairs
on (020) 7280 7159; or
Stephen Seagrove, Head of Investor Relations
on (020) 7280 7164
Application has been made to The Stock Exchange of Hong Kong Limited for
listing of and permission to deal in the shares of Standard Chartered PLC.
This document is not an offer of securities for sale in the United States.
The proposed offering mentioned has not been and will not be registered under
the US Securities Act of 1933. Any securities offered by Standard Chartered
may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.
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