Final Results. Part 2
Standard Chartered PLC
02 March 2006
STANDARD CHARTERED PLC PART 2
1. Basis of preparation
The Group financial statements consolidate those of the Company and its
subsidiaries (together referred to as the 'Group') and equity account the
Group's interest in associates and proportionately consolidates interests in
jointly controlled entities.
The financial statements have been prepared and approved by the directors in
accordance with International Financial Reporting Standards as adopted by the EU
('adopted IFRSs').
The Group prepares its financial statements in accordance with IFRS as adopted
for use in the EU for the first time and consequently both have applied IFRS 1.
An explanation of how the transition to adopted IFRS has affected the reported
financial position, financial performance and cashflows of the Group is provided
in note 12. The Group has taken advantage of the transitional arrangements of
IFRS not to restate corresponding comparative amounts in accordance with IAS 32
and 39. These Standards were adopted on 1 January 2005. Adjustments required to
adopt IAS 32 and 39 are set out in note 12.
A summary of the Group's significant accounting policies will be included in the
2005 Annual Report.
2. Segmental Information
The Group is organised on a worldwide basis into two main business segments:
Wholesale Banking and Consumer Banking. The types of products and services
within these segments are set out in the Financial Review. The Group's secondary
reporting format comprises geographical segments.
By Class of Business
2005 2004
Consumer Wholesale Corporate Total Consumer Wholesale Corporate Total
Banking Banking items not $million Banking Banking items not $million
$million $million allocated $million $million allocated
$million $million
Internal income 26 (26) - - (2) 2 - -
Net interest income 2,861 1,474 - 4,335 1,961 1,220 1 3,182
Other income 920 1,606 - 2,526 741 1,352 107 2,200
Operating income 3,807 3,054 - 6,861 2,700 2,574 108 5,382
Operating expenses (2,101) (1,710) - (3,811) (1,400) (1,426) (23) (2,849)
Operating profit before impairment 1,706 1,344 - 3,050 1,300 1,148 85 2,533
losses
Impairment losses on loans and (425) 106 (319) (242) 28 - (214)
advances
-
Other impairment (3) (11) (36) (50) - (1) (67) (68)
Operating profit before taxation 1,278 1,439 (36) 2,681 1,058 1,175 18 2,251
Total assets employed 74,134 140,464 *498 215,096 38,094 108,712 *318 147,124
Total liabilities employed 79,008 123,472 *283 202,763 53,384 83,376 *295 137,055
Total risk weighted assets and 52,054 73,870 - 125,924 28,069 64,055 - 92,124
contingents
Other segment items:
Capital expenditure 114 109 - 223 98 96 - 194
Depreciation 68 58 - 126 60 55 - 115
Amortisation of intangible assets 74 83 - 157 38 85 - 123
* As required by IAS 14, tax balances are not allocated.
2. Segmental Information continued
By geographic segment
The Group manages its business segments on a global basis. The operations are
based in nine main geographical areas. The UK is the home country of the parent.
Following the acquisition of SC First Bank (SCFB, formerly Korea First Bank), a
new geographical area of Korea has been included. Comparative amounts have been
restated.
2005
Asia Pacific
Hong Singapore Malaysia Korea Other
Kong $million $million $million Asia
$million Pacific
$million
Internal income 49 3 4 (4) 10
Net interest income 935 270 214 826 626
Fees and commissions income, net 352 139 60 45 225
Net trading income 101 84 44 63 165
Other operating income 75 14 11 24 28
Operating income 1,512 510 333 954 1,054
Operating expenses (649) (246) (150) (632) (610)
Operating profit before impairment 863 264 183 322 444
losses
Impairment losses on loans and (117) (43) (30) (61) (49)
advances
Other impairment (1) - - - -
Operating profit before taxation 745 221 153 261 395
Loans and advances to customers - 22,148 11,966 6,521 23,315 9,971
average
Net interest margins (%) 2.2 1.1 2.2 2.0 3.0
Loans and advances to 21,584 12,541 7,613 36,037 11,210
customers - period end
Loans and advances to banks - 5,688 2,431 173 3,222 2,213
period end
Total assets employed** 49,943 23,602 10,409 59,929 24,141
Total risk weighted assets and 21,281 11,770 5,224 31,850 15,140
contingents
Capital expenditure 36 43 6 42 34
2005
India *Middle East & Africa Americas UK & Total
$million Other $million Group $million
S Asia Head
$million Office
$million
Internal income (10) 1 (16) (37) -
Net interest income 337 478 380 269 4,335
Fees and commissions income, net 151 234 151 138 1,495
Net trading income 72 89 31 120 769
Other operating income 40 6 5 59 262
Operating income 590 808 551 549 6,861
Operating expenses (306) (339) (399) (480) (3,811)
Operating profit before impairment 284 469 152 69 3,050
losses
Impairment losses on loans and (50) 9 (43) 65 (319)
advances
Other impairment 1 - (47) (3) (50)
Operating profit before taxation 235 478 62 131 2,681
Loans and advances to customers - 5,107 7,917 2,088 9,819 98,852
average
Net interest margins (%) 3.3 3.2 7.3 0.5 2.5
Loans and advances to 5,017 7,348 2,251 8,576 112,177
customers - period end
Loans and advances to banks - period 238 1,255 313 7,426 22,959
end
Total assets employed** 10,943 12,902 5,606 37,083 234,558
Total risk weighted assets and 6,369 9,304 2,732 24,256 127,926
contingents
Capital expenditure 18 11 13 20 223
* Middle East and Other S Asia includes UAE operating income of $331 million,
operating expenses of $133 million, impairment losses on loans and advances of
$20 million, and operating profit before taxation of $178 million.
** Total assets employed includes intra-group items of $19,960 million and
excludes deferred tax assets of $498 million.
2. Segmental Information continued
2004
Asia Pacific
Hong Singapore Malaysia Korea Other
Kong $million $million $million Asia
$million Pacific
$million
Internal income 28 (12) (10) (4) (4)
Net interest income 899 324 194 32 465
Fees and commissions 323 114 51 7 189
Income, net
Net trading income 99 81 30 33 88
Other operating income 57 6 5 2 17
Operating income 1,406 513 270 70 755
Operating expenses (660) (228) (145) (41) (477)
Operating profit before impairment 746 285 125 29 278
losses
Impairment losses on loans and (125) (33) (2) 3 (43)
advances
Other impairment - - - - -
Operating profit before taxation 621 252 123 32 235
Loans and advances to customers - 21,608 10,398 5,272 352 8,008
average
Net interest margin (%) 2.2 1.6 2.4 1.1 2.8
Loans and advances to customers - 21,744 11,765 6,374 794 8,961
period end
Loans and advances to banks - period 2,852 2,072 349 1,646 1,705
end
Total assets employed** 48,478 20,414 7,119 5,093 17,377
Total risk weighted assets and 20,337 13,892 4,411 1,639 11,705
contingents
Capital expenditure 22 28 12 4 9
2004
India *Middle East & Africa Americas UK & Total
$million Other $million Group $million
S Asia Head
$million Office
$million
Internal income (12) (4) (23) 41 -
Net interest income 299 370 374 225 3,182
Fees and commissions 111 203 153 181 1,332
Income, net
Net trading income 67 75 74 104 651
Other operating income 1 4 6 119 217
Operating income 466 648 584 670 5,382
Operating expenses (252) (270) (360) (416) (2,849)
Operating profit before impairment 214 378 224 254 2,533
losses
Impairment losses on loans and (22) (2) (12) 22 (214)
advances
Other impairment 2 - - (70) (68)
Operating profit before taxation 194 376 212 206 2,251
Loans and advances to customers - 3,841 6,325 1,833 7,430 65,067
average
Net interest margin (%) 3.6 3.1 7.6 0.6 2.6
Loans and advances to customers - 4,692 6,972 2,013 8,844 72,159
period end
Loans and advances to banks - period 171 892 374 7,321 17,382
end
Total assets employed** 8,611 12,867 6,419 56,792 183,170
Total risk weighted assets and 6,413 8,761 2,749 24,895 94,802
contingents
Capital expenditure 44 15 14 46 194
* Middle East and Other S Asia includes UAE operating income of $271 million,
operating expenses of $100 million, impairment losses on loans and advances of
$1 million, and operating profit before taxation of $170 million.
** Total assets employed includes intra-group items of $28,801 million, $7,563
million of derivative balances which are netted on the Consolidated Balance
Sheet and excludes deferred tax assets of $318 million.
Following the acquisition of SCFB on 15 April 2005, Korea has been identified as
a separately reportable geographic segment. In 2004, the existing Korean
business was included in Other Asia Pacific. Accordingly, this segment has been
restated to present Korea separately. The UAE segment has been included with
Middle East and Other S Asia.
Apart from SCFB, Group central expenses have been distributed between segments
in proportion to their direct costs and the benefit of the Group's capital has
been distributed between segments in proportion to their risk weighted assets.
In SCFB, allocations have been based on an estimate of the cost incurred
supporting the integration as a transitional measure.
Assets held at the centre have been distributed between geographic segments in
proportion to their total assets employed.
Total risk weighted assets and contingents include $2,002 million (31 December
2004: $2,678 million) of balances which are netted in calculating capital
ratios.
In 2005 other impairment includes a provision made in respect of exposures in
Zimbabwe. In 2004 other operating income includes profits and losses arising
from corporate decisions to dispose of investments in KorAm Bank ($95 million in
Americas, UK & Group Head Office) and Bank of China (Hong Kong) ($36 million in
Hong Kong) and the premium on repurchase of surplus subordinated debt ($23
million in India). Costs include $18 million related to the incorporation of the
Hong Kong business (Hong Kong) and the $5 million donation to the Tsunami relief
effort (Malaysia, India, Other APR and Other MESA). Other impairment includes
goodwill impairment of $67 million. These decisions resulted in net
non-recurring gains of $18 million. They are included in the Geographic
segmental information, but are not allocated to businesses in the Business
segmental information.
Capital expenditure comprises additions to property and equipment and
intangibles including additions resulting from acquisitions.
2. Segmental Information continued
The following tables set out the structure of Standard Chartered's deposits by
principal geographic region where it operates at 31 December 2005 and 31
December 2004.
2005
Asia Pacific
Hong Singapore Malaysia Korea Other
Kong $million $million $million Asia
$million Pacific
$million
Non interest bearing current and 2,998 2,001 1,120 216 1,343
demand accounts
Interest bearing current and 12,753 2,063 148 13,554 3,612
demand accounts
Savings deposits 6 1,383 459 12 2,478
Time deposits 17,893 11,324 4,046 14,542 8,397
Other deposits 20 49 1,120 1,322 748
Total 33,670 16,820 6,893 29,646 16,578
Deposits by banks 627 3,641 652 4,742 3,517
Customer accounts 33,043 13,179 6,241 24,904 13,061
33,670 16,820 6,893 29,646 16,578
Debt securities in issue 840 1,111 619 19,815 741
Total 34,510 17,931 7,512 49,461 17,319
2005
India *Middle East & Africa Americas UK & Total
$million Other $million Group $million
S Asia Head
$million Office
$million
Non interest bearing current and 1,928 2,855 1,359 473 14,293
demand accounts
Interest bearing current and 3 1,110 1,264 4,534 39,041
demand accounts
Savings deposits 1,286 1,369 368 - 7,361
Time deposits 3,164 5,179 872 10,675 76,092
Other deposits 11 432 97 626 4,425
Total 6,392 10,945 3,960 16,308 141,212
Deposits by banks 676 1,893 98 4,427 20,273
Customer accounts 5,716 9,052 3,862 11,881 120,939
6,392 10,945 3,960 16,308 141,212
Debt securities in issue 655 - 85 3,548 27,414
Total 7,047 10,945 4,045 19,856 168,626
2004
Asia Pacific
Hong Singapore Malaysia Korea Other
Kong $million $million $million Asia
$million Pacific
$million
Non interest bearing current and 3,602 2,040 989 1 1,227
demand accounts
Interest bearing current and 15,300 2,329 130 943 2,056
demand accounts
Savings deposits 24 528 437 707 1,154
Time deposits 13,155 9,847 3,423 150 6,601
Other deposits 2 50 569 - 904
Total 32,083 14,794 5,548 1,801 11,942
Deposits by banks 1,204 3,150 813 688 2,674
Customer accounts 30,879 11,644 4,735 1,113 9,268
32,083 14,794 5,548 1,801 11,942
Debt securities in issue 1,508 758 401 36 1,027
Total 33,591 15,552 5,949 1,837 12,969
2004
India *Middle East & Africa Americas UK & Total
$million Other $million Group $million
S Asia Head
$million Office
$million
Non interest bearing current and 1,224 2,260 1,159 16 12,518
demand accounts
Interest bearing current and 2 1,090 1,603 3,920 27,373
demand accounts
Savings deposits 970 1,599 512 9 5,940
Time deposits 3,441 4,186 679 10,410 51,892
Other deposits 2 402 69 1,551 3,549
Total 5,639 9,537 4,022 15,906 101,272
Deposits by banks 1,109 1,362 110 4,704 15,814
Customer accounts 4,530 8,175 3,912 11,202 85,458
5,639 9,537 4,022 15,906 101,272
Debt securities in issue 469 - 1 7,427 11,627
Total 6,108 9,537 4,023 23,333 112,899
3. Taxation
Analysis of taxation charge in the year:
2005 2004
$million $million
The charge for taxation based upon the profits for the year comprises:
United Kingdom corporation tax at 30% (31 December 2004: 30%):
Current tax on income for the year 326 407
Adjustments in respect of prior periods 4 18
Double taxation relief (308) (357)
Foreign tax:
Current tax on income for the year 671 559
Adjustments in respect of prior periods (18) (13)
Total current tax 675 614
Deferred tax:
Origination/reversal of temporary differences 35 16
Tax on profits on ordinary activities 710 630
Effective tax rate 26.5% 28.0%
Overseas taxation includes taxation on Hong Kong profits of $131 million (31
December 2004: $92 million) provided at a rate of 17.5 per cent (31 December
2004: 17.5 per cent) on the profits assessable in Hong Kong.
4. Dividends
2005 2004
Ordinary Equity Shares Cents Cents
$million $million
per share per share
Final dividend declared and paid during the period 40.44 524 36.49 429
Interim dividends declared and paid during the period 18.94 248 17.06 201
59.38 772 53.55 630
Dividends are recorded in the period in which they are declared. Accordingly,
the final dividends set out above relate to the respective prior years.
The 2005 final dividend of 45.06 cents per share ($595 million) will be paid in
either sterling, Hong Kong dollars or US dollars on 12 May 2006 to shareholders
on the UK register of members at the close of business in the UK on 10 March
2006 and to shareholders on the Hong Kong branch register of members at the
opening of business in Hong Kong (9:00am Hong Kong time) on 10 March 2006.
It is intended that shareholders will be able to elect to receive shares
credited as fully paid instead of all or part of the final cash dividend.
Details of the dividend will be sent to shareholders on or around 27 March 2006.
2005 2004
$million $million
Preference Shares
Non-cumulative irredeemable preference shares:
7 3/8 per cent preference shares of £1 each* 14 14
8 1/4 per cent preference shares of £1 each* 15 15
Non-cumulative redeemable preference shares:
8.9 per cent preference shares of $5 each 29 29
*Dividends on these preference shares are treated as interest expense in 2005
following adoption of IAS 32 .
5. Earnings Per Ordinary Share
2005 2004
Profit Weighted Per Profit Weighted Per
$million average share $million average share
number of amount number of amount
shares cents shares cents
('000) ('000)
Basic earnings per ordinary share 1,917 1,290,916 148.5 1,520 1,172,921 129.6
Effect of dilutive potential
ordinary shares:
Convertible bonds 7 10,346 23 34,488
Options - 8,678 - 3,444
Diluted earnings per share 1,924 1,309,940 146.9 1,543 1,210,853 127.4
Normalised earnings per ordinary share
The Group measures earnings per share on a normalised basis. This differs from
earnings defined in IAS 33, Earnings per share. The table below provides a
reconciliation.
2005 2004
$million $million
Profit attributable to ordinary shareholders 1,917 1,520
Profit on sale of shares in - KorAm (95)
- Bank of China (36)
Premium and costs paid on repurchase of subordinated debt 23
Costs of Hong Kong incorporation 18
Tsunami donation 5
Goodwill impairment 67
Total one-off items (18)
Amortisation of intangible assets arising on business combinations 32 -
Profit less losses on disposal of investment securities held at cost - (33)
Profit on sale of property, plant and equipment - (4)
Profit on disposal of subsidiary undertakings - (4)
Other impairment 42 1
Tax on normalised items (7) -
Normalised earnings 1,984 1,462
Normalised earnings per ordinary share 153.7c 124.6c
No ordinary shares were issued after the balance sheet date that would have
significantly affected the number of ordinary shares used in the above
calculations had they been issued prior to the end of the balance sheet period
except as described in notes 24 and 35.
Normalised EPS has grown by 23 per cent.
With the adoption of IAS 39, the Group no longer normalises gains and losses on
disposal of investment securities as these are now held in an available-for-sale
portfolio at fair value.
Had this policy been adopted in 2004, normalised earnings per share would have
been 127.5 cents and EPS growth would have been 20 per cent
6. Cash and Cash Equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprises
of the following balances with less than three months maturity from the date of
acquisition.
2005 2004
$million $million
Cash and balances with central banks 8,012 3,961
Less restricted balances (4,269) (1,860)
Treasury bills and other eligible bills 4,049 3,666
Loans and advances to banks 17,590 10,292
Trading securities 9,844 6,053
Total 35,226 22,112
7. Contingent Liabilities and Commitments
The table below shows the contract or underlying principal amounts, credit
equivalent amounts and risk weighted amounts of unmatured off-balance sheet
transactions at the balance sheet date. The contract or underlying principal
amounts indicate the volume of business outstanding and do not represent amounts
at risk.
The credit equivalent and risk weighted amounts have been calculated in
accordance with the Financial Services Authority guidelines implementing the
Basel Accord on capital adequacy, after taking account of collateral and
guarantees received.
. 2005 2004
Contract or Credit Risk Contract or Credit Risk
underlying equivalent weighted underlying equivalent weighted
principal amount amount principal amount amount
amount $million $million amount $million $million
$million $million
Contingent liabilities
Acceptances and endorsements* - - - 976 976 842
Guarantees and irrevocable letters 15,952 11,106 7,704 15,942 9,976 8,146
of credit
Other contingent liabilities 6,295 5,134 2,995 3,139 2,414 1,221
22,247 16,240 10,699 20,057 13,366 10,209
Commitments
Documentary credits and short term 3,730 746 572 2,924 585 494
trade-related transactions
Forward asset purchases and forward 141 141 28 54 54 11
deposits placed
Undrawn formal standby facilities,
credit lines and other commitments
to lend:
One year and over 11,128 5,564 3,956 9,140 4,570 4,133
Less than one year 18,690 - - 8,903 - -
Unconditionally 28,705 - - 25,933 - -
cancellable
62,394 6,451 4,556 46,954 5,209 4,638
* Acceptances and endorsements are recorded on balance sheet with the adoption
of IAS 39.
8. Post Balance Sheet Events
In January 2006 the Company issued 3,401,290 new ordinary shares at a price of
1301 pence per share representing approximately 0.26 per cent of the Company's
existing issued ordinary share capital.
The issue of ordinary shares was used to acquire 20 per cent of Fleming Family &
Partners Limited.
On 2 March 2006 a dividend of 45.06 cents per share was recommended.
9. Forward Looking Statements
This document contains forward-looking statements, including such statements
within the meaning of section 27A of the US Securities Act of 1993 and section
21E of the Securities Exchange Act of 1934. These statements concern, or may
affect, future matters. These may include the Group's future strategies,
business plans, and results and are based on the current expectations of the
directors of Standard Chartered.
They are subject to a number of risks and uncertainties that might cause actual
results and outcomes to differ materially from expectations outlined in these
forward-looking statements. These factors are not limited to regulatory
developments but include stock markets, IT developments, competitive and general
operating conditions.
10. Dealings in the Company's listed securities
Neither the Company nor any of its subsidiaries has bought, sold or redeemed any
securities of the Company listed on The Stock Exchange of Hong Kong Limited
during the year ended 31 December 2005.
11. Corporate Governance
The directors confirm that, throughout the period, the Company has complied with
the provisions of Appendix 14 of the Listing Rules of the Hong Kong Stock
Exchange. The directors also confirm that the announcement of these results has
been reviewed by the Company's Audit and Risk Committee.
12. Transition to IFRS adopted by the EU
EU law (IAS Regulation EC 1606/2002) requires that the annual consolidated
financial statements of the Company, for the year ending 31 December 2005, be
prepared in accordance with International Financial Reporting Standards (IFRSs)
adopted for use in the EU ('adopted IFRSs').
This financial information has been prepared on the basis of the recognition and
measurement requirements of IFRSs in issue that are adopted by the EU and
effective (or available for early adoption) at 31 December 2005, the Group's
first annual reporting date at which it is required to use adopted IFRSs.
The Group's transition date is 1 January 2004. The Group prepared its opening
IFRS balance sheet at that date.
In preparing these consolidated financial statements in accordance with
IFRS 1, the Group has applied the mandatory exceptions and certain of the
optional exemptions from full retrospective application of IFRS.
The Group elected to apply the exemption from restatement of comparatives for
IAS 32 and IAS 39. It has applied previous UK GAAP rules to derivatives,
financial assets and financial liabilities and to hedging
relationships for the 2004 comparative information. The adjustments required for
differences between UK GAAP and IAS 32 and IAS 39 have been determined and
recognised at 1 January 2005.
12. Transition to EU Adopted IFRS continued
Reconciliation of profit for the year ended 31 December 2004
UK GAAP Effect of IFRS
transition
$million $million
to IFRS
$million
Interest income 5,232 80 5,312
Interest expense (2,064) (66) (2,130)
Net interest income 3,168 14 3,182
Other finance income 10 (10) -
Fees and commissions income 1,617 (3) 1,614
Fees and commissions expense (283) 1 (282)
Net trading income 648 3 651
Other operating income 207 10 217
2,189 11 2,200
Operating income 5,367 15 5,382
Staff costs (1,534) (25) (1,559)
Premises costs (321) - (321)
Other administrative expenses (721) (10) (731)
Depreciation and amortisation (420) 182 (238)
Operating expenses (2,996) 147 (2,849)
Operating profit before impairment losses and taxation 2,371 162 2,533
Impairment losses on loans and advances and other credit risk
provisions
(214) - (214)
Income from joint ventures 2 (2) -
Other impairment (1) (67) (68)
Profit before taxation 2,158 93 2,251
Taxation (637) 7 (630)
Profit for the year 1,521 100 1,621
12. Transition to EU Adopted IFRS continued
Reconciliation of equity at 1 January 2004
(date of transition to IFRS)
Share Capital and Premises Own shares Retained Minority Total
capital and capital revaluation held in earnings interest equity
share redemption $million ESOP $million $million $million
premium reserve Trusts
$million $million $million
UK GAAP 3,752 16 (2) (60) 3,823 614 8,143
Dividends - - - - 439 - 439
Fixed Assets - - 81 - (84) - (3)
Share awards - - - - (3) - (3)
Consolidation - - - - 25 6 31
Tax - - (22) - (9) - (31)
Other - - - - (9) - (9)
IFRS 3,752 16 57 (60) 4,182 620 8,567
Reconciliation of equity at 31 December 2004
Share Capital and Premises Own shares Retained Minority Total
capital and capital revaluation held in earnings interest equity
share redemption $million ESOP $million $million $million
premium reserve Trusts
$million $million $million
UK GAAP 3,802 16 (5) (8) 4,630 956 9,391
Dividends - - - - 532 - 532
Goodwill - - - - 114 - 114
Fixed Assets - - 81 - (84) - (3)
Share options - - - - 16 - 16
Consolidation - - - - 27 8 35
Tax - - - - (4) - (4)
Other - - - - (12) - (12)
IFRS 3,802 16 76 (8) 5,219 964 10,069
12. Transition to EU Adopted IFRS continued
Reconciliation of Balance Sheet at 31 December 2004
UK GAAP Effect of IFRS Recalssif-cation IFRS
transition to
$million $million $million
to IFRS IFRS format
$million $million
Assets
Cash and balances at central banks 2,269 1,691 3,960 - 3,960
Treasury bills and other eligible bills 4,425 - 4,425 (4,425) -
Financial assets held at fair value through - - - 4,744 4,744
profit and loss
Loans and advances to banks 18,922 (1,540) 17,382 (695) 16,687
Loans and advances to customers 71,596 563 72,159 (140) 72,019
Investment securities 28,295 4,547 32,842 769 33,611
Equity shares 253 - 253 (253) -
Interest in joint ventures 187 (187) - - -
Intangible assets 1,900 453 2,353 - 2,353
Property, plant and equipment 844 (289) 555 - 555
Deferred tax assets 276 (4) 272 46 318
Other assets 11,453 144 11,597 - 11,597
Prepayments and accrued income 1,268 12 1,280 - 1,280
Total assets 141,688 5,390 147,078 46 147,124
Liabilities
Deposits by banks 15,813 1 15,814 (652) 15,162
Customer accounts 84,572 886 85,458 (365) 85,093
Financial liabilities at fair value through - - - 2,392 2,392
profit and loss
Debt securities in issue 7,378 4,249 11,627 (622) 11,005
Current tax liabilities 295 - 295 - 295
Other liabilities 16,066 (524) 15,542 (753) 14,789
Accruals and deferred income 1,262 59 1,321 - 1,321
Provisions for liabilities and charges 59 2 61 - 61
Retirement benefit liabilities 120 3 123 46 169
Other borrowed funds 6,732 36 6,768 - 6,768
Total liabilities 132,297 4,712 137,009 46 137,055
Equity
Share capital and share premium 3,802 - 3,802 - 3,802
Reserves and retained earnings 4,633 670 5,303 - 5,303
Total shareholders' equity 8,435 670 9,105 - 9,105
Minority interests 956 8 964 - 964
Total equity 9,391 678 10,069 - 10,069
Total equity and liabilities 141,688 5,390 147,078 46 147,124
12. Transition to EU Adopted IFRS continued
Reconciliation of equity at 1 January 2005
The Group has taken advantage of the transitional arrangements of IFRS 1 not to
restate corresponding amounts in accordance with IAS 32 and 39. The table below
shows the affects of IAS 32 and 39 on the balance sheet at 1 January 2005.
Share Other equity AFS Cash flow Premises Retained Minority Total
capital/ instruments reserves hedge revaluation earnings interest equity
premium and $million reserve $million $million $million $million
redemption $million $million
reserve
$million
IFRS (ex IAS 32/39) 3,818 - - - 76 5,211 964 10,069
Debt/Equity (375) 994 - - - 20 - 639
Effective yield - - - - - 109 - 109
Derivatives/hedging - - - 61 - 58 (4) 115
Asset classification/fair values - - 87 - - (27) - 60
Other - - - - - (102) - (102)
Impairment - - - - - 33 - 33
Tax - - (14) (19) - (55) - (88)
IFRS 3,443 994 73 42 76 5,247 960 10,835
Financial Calendar
Ex-dividend date 8 March 2006
Record date 10 March 2006
Expected posting to shareholders of 2005 Report and Accounts 27 March 2006
Annual General Meeting 4 May 2006
Payment date - final dividend on ordinary shares 12 May 2006
Copies of this statement are available from:
Investor Relations, Standard Chartered PLC, 1 Aldermanbury Square, London, EC2V
7SB or from our website on http://investors.standardchartered.com
For further information please contact:
Tracy Clarke, Group Head of Corporate Affairs
+44 20 7280 7708
Romy Murray, Head of Investor Relations
+44 20 7280 7245
Ruth Naderer, Head of Investor Relations, Asia Pacific
+852 2820 3075
Sean Farrell, Head of Media Relations
+44 207 280 7163
The following information will be available on our website
• A live webcast of the annual results analyst presentation (available
from 9.45 am GMT)
• The archived webcast and Q/A session of analyst presentation in London
(available 2pm GMT)
• Interviews with Mervyn Davies, Group Chief Executive Officer and Peter
Sands, Group Finance Director available from 8.15am GMT.
• Slides for the Group's presentations (available after 2pm GMT)
Images of Standard Chartered are available for the media at http://
www.standardchartered.com/global/mc/plib/directors_p01.html
Information regarding the Group's commitment to Corporate Responsibility is
available at http://www.standardchartered.com/corporateresponsibility
The 2005 Annual Report will be made available on the website of the Stock
Exchange of Hong Kong and on our website http://investors.standardchartered.com
as soon as is practicable.
END
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The company news service from the London Stock Exchange
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