Standard Chartered PLC

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ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember U4LOSYZ7YG4W3S5F2G91 2023-12-31 ifrs-full:RetainedEarningsMember U4LOSYZ7YG4W3S5F2G91 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember U4LOSYZ7YG4W3S5F2G91 2023-12-31 ifrs-full:OtherEquityInterestMember U4LOSYZ7YG4W3S5F2G91 2023-12-31 ifrs-full:NoncontrollingInterestsMember iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares Connecting the world’s most dynamic markets Annual Report 2024 Connecting the world’s most dynamic markets Standard Chartered is a global bank connecting corporate, inst itut ional and afﬂuent clients to a network that offers unique access to sustainable growth opportunit ies across As ia, Africa and the Middle East. Our strategy combines different iated cross-border capab il it ies and leading wealth management expertise. Our purpose is to drive commerce and prosperity through our unique divers ity. This is underpinned by our brand promise, here for good. Strategic report Financ ial KPIs 1 Return on tangible equity (RoTE) 11.7 % 160bps Underlying basis 9.7 % 130bps Reported basis Common Equity Tier 1 ratio (CET1) 14.2 % 19bps Above our 13-14% target range Total shareholder return 47.5 % 2023: 9.4% Non-ﬁnancial KPIs 2 Divers ity and inclus ion: women in senior roles 4 33.1 % 0.6ppt Mobil is ing sustainable ﬁnance $121bn $34bn Employee net promoter score (eNPS) 20.44 5.42 points Other ﬁnancial measures 1, 3 Operating income $19,696 m 14% Underlying basis $19,543 m 10% Reported basis Proﬁt before tax $6,811 m 21% Underlying basis $6,014 m 19% Reported basis Earnings per share 168.1 cents 39.2 cents Underlying basis 141.3 cents 32.7 cents Reported basis Tangible net asset value per ordinary share 1,541 cents 148 cents 1 Reconcil iat ions from underlying to reported and deﬁn it ions of alternative performance measures can be found on pages 54 to 56. 2 For more informat ion on our culture of inclus ion see page 40, and for more on our Susta inab il ity Aspirat ions see page 64. 3 Year-on-year growth on Operating income and Proﬁt before tax is on constant currency basis. 4 Senior leadership is deﬁned as Managing Directors and Band 4 roles (includ ing the Group Management Team). 01 Standard Chartered – Annual Report 2024 Strategic report In this report Unless another currency is specif ied, the word ‘dollar’ or symbol ‘$’ in this document means US dollar and the word ‘cent’ or symbol ‘c’ means one-hundredth of one US dollar. Disclosures in the Strategic report, Financ ial rev iew, Sustainab il ity review, Directors’ report, Risk review and Capital review and Supplementary informat ion are unaud ited unless otherwise stated. Unless context requires with in the document, ‘Ch ina’ refers to the People’s Republic of China and, for the purposes of this document only, excludes Hong Kong Special Admin istrat ive Region (Hong Kong), Macau Special Admin istrat ive Region (Macau) and Taiwan. ‘Korea’ or ‘South Korea’ refers to the Republic of Korea. Asia includes Australia, Bangladesh, Brunei, Cambodia, India, Indonesia, Laos, Malaysia, Myanmar, Nepal, Phil ipp ines, Singapore, Sri Lanka, Thailand, Vietnam, China, Hong Kong, Japan, Korea, Macau and Taiwan; Africa includes Botswana, Côte d’Ivoire, Egypt, Ghana, Kenya, Maurit ius, N iger ia, South Africa, Tanzania, Uganda and Zambia. The Middle East includes Bahrain, Iraq, Oman, Pakistan, Qatar and Saudi Arabia and the UAE. Europe includes Belgium, Falkland Islands, France, Germany, Jersey, Luxembourg, Poland, Sweden, Türkiye and the UK. The Americas includes Argentina, Brazil, Colombia and the US. With in the tables in this report, blank spaces ind icate that the number is not disclosed, dashes ind icate that the number is zero and ‘nm’ stands for not meaningful. Standard Chartered PLC is incorporated in England and Wales with lim ited l iab il ity, and is headquartered in London. The Group’s head ofﬁce provides guidance on governance and regulatory standards. Standard Chartered PLC Stock codes are: LSE STAN.LN and HKSE 02888. Sustainab il ity and ESG reporting The Group includes Environmental, Social and Governance (ESG) and sustainab il ity informat ion in this Annual Report, provid ing investors and stakeholders with an understanding of the impl icat ions of relevant sustainab il ity-related risks and opportunit ies and progress aga inst our object ives. We have observed our obligat ions under: ( i) sections 414CA and 414CB of the UK Companies Act 2006; (i i) the UK’s Financ ial Conduct Author ity’s List ing Rules in respect of climate-related disclosures; and (i i i) the ESG Reporting Guide contained in Appendix C2 to the Rules Governing the List ing of Secur it ies on the Stock Exchange of Hong Kong Lim ited. We have made d isclosures consistent with the Task Force on Climate-Related Financ ial D isclosures (TCFD) recommendations and recommended disclosures throughout this Annual Report. In preparing this report we have given considerat ion to (but do not align in full with) the guidance provided by the International Sustainab il ity Standards Board (ISSB) Standards ﬁnalised in 2023: IFRS S1 and IFRS S2, noting that IFRS S2, although largely based on TCFD, requires a more granular level of disclosure. IFRS S1 and S2 are voluntary standards and compliance is not yet required in the Group’s list ing locat ions. Addit ionally, we publ ish an ESG reporting index against the voluntary Global Reporting Init iat ive (GRI) Universal Standards and select GRI Topic Standards, and the World Economic Forum Stakeholder Capital ism Metr ics framework. The Group’s sustainab il ity-related disclosures can be accessed via sc.com/sustainab il ityl ibrary Alternative performance measures The Group uses a number of alternative performance measures in the discuss ion of its performance. These measures exclude certain items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. They provide the reader with ins ight into how management measures the performance of the business. For more informat ion on Standard Chartered please vis it sc.com All informat ion presented in the Group Chairman’s statement, and Group CEO and CFO reviews are on an underlying basis unless otherwise stated. A reconcil iat ion from underlying to reported and deﬁn it ions of alternative performance measures can be found on pages 54 to 56. About this report Strategic report 02 Who we are and what we do 04 Where we operate 06 Group Chairman’s statement 08 Group Chief Executive’s review 12 Key performance ind icators 14 Market environment 18 Our strategy 19 Business model 21 Client segment reviews 24 Group Chief Financ ial Ofﬁcer’s review 27 Group Chief Risk Ofﬁcer’s review 35 Stakeholders 42 Sustainab il ity overview 45 Viab il ity statement Financ ial rev iew 48 Financ ial summary 54 Underlying versus reported results reconcil iat ions 56 Alternative performance measures Sustainab il ity review 58 Sustainab il ity review 69 Sustainable ﬁnance 74 Climate 90 Nature 91 Social impact 93 Managing Environmental and Social Risk 98 Sustainab il ity governance Directors’ report 104 Group Chairman’s governance overview 105 Board of Directors 110 Management Team 113 Corporate governance 143 Directors’ remuneration report 174 Addit ional remunerat ion disclosures 182 Other statutory and regulatory disclosures 192 Statement of directors’ responsib il it ies Risk review and Capital review 196 Enterprise Risk Management Framework 201 Princ ipal r isks 207 Risk proﬁle 256 Climate Risk 270 Capital review Financ ial statements 276 Independent Auditor’s report 287 Financ ial statements 294 Notes to the ﬁnancial statements Supplementary informat ion 382 Supplementary ﬁnancial informat ion 388 Supplementary people informat ion 393 Supplementary sustainab il ity informat ion 396 Shareholder informat ion 399 Glossary 58 Stakeholders 35 08 Sustainab il ity review Our strategy 18 Client segment reviews 21 Group Chief Executive’s review 02 Standard Chartered – Annual Report 2024 Strategic report We serve three client segments, with support from seven global functions. Who we are and what we do Our client-facing businesses are supported by our global functions, which work together to ensure the Group’s operations run smoothly. $7,816m Underlying basis $7,839m Reported basis $11,818m Underlying basis $11,863m Reported basis $183m Underlying basis $183m Reported basis $(121)m Underlying basis $(342)m Reported basis Our client segments Global functions Strategy & Talent Brings together the Corporate Strategy, Group-wide Transformation, Corporate Affairs, Brand & Marketing, Corporate Real Estate Services, Human Resources, Supply Chain Management and Fit for Growth programme teams. The function plays a crit ical role in how we develop, execute and communicate our strategy and build and deploy our skills and resources to transform the Bank and achieve sustainable growth. Group Internal Audit An independent function with the primary role of supporting the Board and Management Team, and protecting the assets, reputation and sustainab il ity of the Group. Technology & Operations Responsible for reshaping the Group’s systems and technology platforms to ensure we provide robust, responsive and innovat ive technology and d ig ital solut ions. Also manages all client operations, seeking to provide an optimal client service and experience across the board. Compliance, Financ ial Crime & Conduct Risk (CFCR) Partners internally and externally to achieve the highest standards in conduct and compliance to enable a sustainable business and to ﬁght ﬁnanc ial cr ime. Total operating income $19,696m Underlying basis $19,543m Reported basis 1. 3. 2. Operating income Client segment Group Chief Financ ial Ofﬁce (GCFO) Partners with the business and collaborates with other functions to execute on the Group strategy. GCFO comprises four areas: Finance, Treasury, Investor Relations and Corporate Development. Who we are and what we do Legal Provides legal advice and support to the Group in managing legal risks and issues. Risk Provides oversight and challenge on the Group’s risk management, ensuring that business is conducted in line with regulatory expectations. 1. Corporate & Investment Banking (CIB) Supports large corporations, development organisat ions, governments, banks and investors in accessing cross-border trade and investment opportunit ies. 2. Wealth & Retail Banking (WRB) Serves the local and internat ional bank ing needs of clients across the wealth continuum from Personal to Prior ity and Pr ivate Banking, as well as small and medium enterprises. 3. Ventures Promotes a culture of innovat ion across the Group, invest ing in disrupt ive ﬁnancial technology and creating alternative ﬁnancial serv ice business models, as well as growing our dig ital banks — Mox and Trust. 4. Central & Other Items 03 Standard Chartered – Annual Report 2024 Strategic report Valued behaviours We set long-term ambit ions to address some of the most pressing societal challenges of our time. Climate change, deepening inequal ity and the inequ it ies of globalisat ion remain as urgent today as ever before. Accelerating Zero Lift ing Partic ipat ion Resetting Globalisat ion Our culture With our focus on cross-border banking and helping generations of famil ies grow the ir wealth – we remain the bank we set out to be over 170 years ago. Our dist inct ive culture has been developed in pursuit of our purpose – to drive commerce and prosperity through our unique divers ity. We del iver innovat ive solut ions that create long-term value for our clients and the communit ies w ith in which we operate. We’re committed to promoting equality and inclus ion, as it’s our divers ity – of people, cultures and networks – that sets us apart and helps us drive business growth. We are guided by our valued behaviours, our Stands and our brand promise, here for good. Our valued behaviours are key to deliver ing on our strategy. As the guid ing pr inc iples for the way we do bus iness every day, they help us learn from our successes and take on new challenges. When we live our valued behaviours, we question, innovate and make bold decis ions, allowing us to take opportunit ies to go above and beyond for our cl ients. Do the right thing Doing the right thing means acting in the best interests of our clients, colleagues and stakeholders. Never settle We’re ambit ious in our constant pursuit of excellence and market- leading innovat ion. Better together We build relationsh ips w ith our clients and each other so we can share our unique capabil it ies. Read more on our Stands sc.com/who-we-are Our Stands 04 Standard Chartered – Annual Report 2024 Strategic report Where we operate We operate in the world’s most dynamic markets, which set the pace for global growth and prosperity. Americas • Argentina • Brazil • Colombia • US Europe • Belgium • Falkland Islands • France • Germany • Jersey • Luxembourg • Poland • Sweden • Türkiye • UK Middle East • Bahrain • Iraq • Oman • Pakistan • Qatar • Saudi Arabia • UAE Africa • Botswana • Côte d’Ivoire • Egypt • Ghana • Kenya • Maurit ius • Niger ia • South Africa • Tanzania • Uganda • Zambia Asia • Australia • Bangladesh • Brunei • Cambodia • Hong Kong • India • Indonesia • Japan • Korea • Laos • Macau • China • Malaysia • Myanmar • Nepal • Phil ipp ines • Singapore • Sri Lanka • Taiwan • Thailand • Vietnam Where we operate Our locations Our unique geographic footprint connects high-growth and emerging markets in Asia, Africa and the Middle East with more established economies in Europe and the Americas, allowing us to channel capital to where it’s needed most. For more than 170 years, we have used the power of our network to maxim ise opportun it ies for people and bus inesses who trade, operate or invest in these regions. Our diverse experience, capabil it ies and culture set us apart. Markets across the world 53 05 Standard Chartered – Annual Report 2024 Strategic report Together, we run further Our marathon series covered new ground in 2024. We launched the 10th race in our global marathon portfolio, the Standard Chartered Hanoi Marathon Heritage Race, which commemorates our 120-year presence in Vietnam. At a special edit ion race in Hong Kong, we gave runners a once-in-a-lifet ime opportun ity to race on the runway at Hong Kong International Airport. Across the year, more than 244,000 partic ipants took part in our marathons and races from Shanghai to Nairob i. Our global marathon series demonstrates our presence, network and experience in the world’s most dynamic markets. Read more at sc.com/marathons 06 Standard Chartered – Annual Report 2024 Strategic report Group Chairman’s statement Group Chairman’s statement Throughout 2024, we made demonstrable progress in deliver ing on our strategy, as ev idenced by our ﬁnanc ial performance for the full year. Our high-growth markets, where we have prior it ised investment, continue to deliver strongly and provide the basis for us to pursue our role as a super connector across the established and emerging global corridors of trade, investment and wealth. This performance was achieved in a year when the geopolit ical environment saw the transit ion and transfer of power as roughly half the world’s population partic ipated in the global election ‘super cycle’, with approximately two bill ion el ig ible voters in over 70 national elections. Despite many changes, and in some cases disrupt ion, our strategy endures. Th is has been driven by our own internal disc ipl ine as well as our tireless execution in deliver ing outstand ing service to our clients. The leadership of our Group Chief Executive, Bill Winters, and his Management Team continues to insp ire conﬁdence and focus across the organisat ion. The ir expertise and dedicat ion rema in essential to our success, and my deepest thanks go to each of them and their teams. The reﬁnement of our strategy announced with our Q3 2024 results brings together two complementary strengths of our business, which are well posit ioned as dr ivers of future growth: the pursuit of cross-border opportunit ies through our corporate and investment banking capabil ity and network; and an unrelenting focus on the fast-growing afﬂuent segment of clients through our leading wealth management offering. In sharpening our focus, it has likew ise been necessary to make changes to our business model, includ ing the dec is ion to reshape our mass retail business to focus on developing our pipel ine of future afﬂuent and internat ional bank ing clients, and optim ise our resource allocat ion by exit ing some markets. While such changes are diff icult, part icularly where our presence has been longstanding, we must consider where we can have the greatest impact and where our capabil it ies can be delivered both efﬁc iently and effect ively in service of future growth, value creation and the evolving needs of our clients. Performance with purpose In my statement last year, I highl ighted that our growth must be achieved in a strong, safe and sustainable manner, while mainta in ing both cost and capital disc ipl ine. I am delighted to say that 2024 saw us mainta in th is level of rigour in our approach. This led to an improvement in our return on tangible equity reaching 11.7 per cent, which sets a notable milestone for us ahead of our 2026 target of approaching 13 per cent. When combined with income growth of 14 per cent on a constant currency basis it becomes clear that our underlying business is connected to meaningful opportunit ies across our markets. The strength of our performance in 2024 has also been observed in our share price over the period, which not only reﬂects the progress we are making, but the renewed conﬁdence and understanding of our business in the eyes of our investors and external stakeholders. The Board and Group Management Team are pleased to see such results ﬂow through and remain committed to build ing on th is further. This year, we are pleased to be able to provide an increased full-year div idend of 37 cents per share (a 37 per cent increase) and are announcing a further share buyback of $1.5 bill ion, in addit ion to the $2.5 b ill ion already announced over the course of the year. Overall, this amounts to a total of $4.9 bill ion announced since full-year 2023 results. Across both Corporate & Investment Banking (CIB) and our Wealth & Retail Banking (WRB) businesses, we are focused on driv ing income growth in high-returning areas. In CIB, our commitment to deepening our relationsh ip w ith ﬁnanc ial inst itut ions and leveraging our unique network in support of our corporate client base was underpinned by strong growth in both our Global Markets and Global Banking business. While in WRB, our decis ion to make a $1.5 b ill ion investment commitment in service of the afﬂuent client segment underlines our role as a Bank that offers services throughout the full wealth continuum. We are targeting $200 bill ion in net new money and double-dig it CAGR in Wealth Solutions income over the next ﬁve years, a business which saw a record performance in 2024, up 29 per cent at constant currency when compared with 2023, with double-dig it growth in both Investment Products and Bancassurance. Beyond ﬁnancial performance, our purpose and brand prom ise, here for good, remain crit ically important in deﬁn ing who we are as a business. They aid us in determin ing our amb it ion and help guide our decis ion mak ing. As a Group, we continue to play our part in helping to address some of the most pressing “The strength of our performance reﬂects not only the progress we are making but stronger external conﬁdence and understanding of our business” Dr José Viñals Group Chairman 07 Standard Chartered – Annual Report 2024 Strategic report societal changes through our Stands: Accelerating Zero, Lift ing Partic ipat ion and Resetting Globalisat ion. In this report we outline further progress against our net zero roadmap as we disclose the inter im targets and sc ience-based methodologies for our ﬁnanced emiss ions in all 12 of the high-emitt ing sectors as deﬁned by the Net-Zero Bank ing Alliance. The addit ion of a target for the Agr iculture sector fulﬁls our commitment to target setting in support of our clients as they navigate the transit ion of the real-world economy. As a reminder, 2025 is also the year in which we aim to be net zero in our Scope 1 and 2 emiss ions, an important milestone in our own net zero journey as a Group. This year we also published the Group’s inaugural Transit ion Plan which outlines our approach to deliver this change and achieve net zero by 2050, demonstrating to clients, suppliers, customers and other key stakeholders that the bank has a clear plan to deliver on the commitments we have made. Our sustainable and transit ion ﬁnance capab il it ies are a sign iﬁcant part of our commerc ial offering and demonstrate the value of our deep expertise in this space as a trusted, expert adviser. The growth of this business and the broadening divers ity of our product offer ing give us a leading advisory capabil ity that is in high demand in our markets, as they look to deliver progress against their own adaptation, transit ion, and sustainab il ity ambit ions. Conﬁdent and accountable As a Board, our role is to ensure the highest standards in corporate governance and to take a long-term view on how we can responsibly achieve success for the Group, through both our oversight and constructive partnership with the Group Management Team. As I reach the end of my nine-year term and prepare to step down from the Board after this year’s Annual General Meeting (AGM), I am especially proud that my successor comes from our exist ing non-execut ives. I have every conﬁdence that Maria Ramos will build on the constructive partnership we have built with the Group Management Team and in her abil ity to lead the Group in its next phase of growth. Under her stewardship, I believe that the Group will continue to seek out opportunity, leverage the talent of our people, remain client-centric and resil ient, and ensure we can successfully nav igate the challenges that may lie ahead. In reﬂecting on my time with the Group, I look back to my orig inal pr ior it ies when jo in ing. These were to deliver long-term value by helping the Bank achieve its potential, safeguard and strengthen its resil ience; and to leave in place an enhanced model of governance. By these measures, I am proud of what we have achieved, and grateful for the contribut ion of the many colleagues and partners over the years who were integral in helping us to, collectively, make credible progress. While such work is never complete in any organisat ion, our ﬁnancial performance h ighl ights the value of our franch ise. And as we look to the future, we must set a renewed level of ambit ion. Our ab il ity to adapt and evolve in a fast-changing external and competit ive env ironment will be the measure of our long-term success. I would like to acknowledge the contribut ion of my fellow Board members during my tenure, and thank those who retired from the Board. Since our last AGM, David Conner stepped down in December 2024 after nine years. During his tenure we greatly beneﬁted from his ins ights and expert ise gained over many years of working across some of our key markets. He has likew ise played a key role as a member of the Board and our committees and led the Board Risk Committee with dist inct ion. Importantly, we also welcomed new members to the Board. This includes Diane Jurgens, who was announced last year, and subsequently joined the Board in March 2024, as well as Lincoln Leong, who jo ined the Board in November 2024. Each of our Board members brings valuable personal perspectives and the weight of their experience in terms of expertise in markets and industr ies. The mult i-faceted divers ity of our Board rema ins crit ically important, and while all appointments are based on merit, they must also be representative of the diverse clients we serve and markets in which we operate. From possib il it ies to prosper ity The early months of 2025 have already proven that, alongside growth, success and opportunity, there is always risk. Circumstances can and will change and what we consider to be norms cannot always be taken for granted. As a Group, it is incumbent on us to aid our clients through such circumstances, to help them navigate the possib il it ies that prov ide a pathway to growth and prosperity. The world is in a period of transit ion, from a western-led and progressively more integrated global economy to an era of ‘multi-alignment’ where major players may act more independently and assertively. The long-running trends of environmental, technological and demographic change are being brought into sharper relief by these tensions. This is re-shaping the way markets interact – and, in turn, the where, how and who of globalisat ion. In 2024, we saw profound changes across geopolit ics, technology, and the need for a better and more sustainable model of growth. The full scale of the AI opportunity started to dawn on businesses and governments alike, with greater appreciat ion for how incremental investments can drive near-term growth and impact. In the context of ongoing climate negotiat ions, the planet exceeded the 1.5C warm ing threshold for the ﬁrst time, bring ing us close to a long-term trend that may be irrevers ible. Our role is to help our clients, communit ies and stakeholders navigate transit ion w ith conﬁdence, underpinned by the belief that change is most powerful and inclus ive when it is delivered in partnership. Although we expect global growth to slow slightly in 2025, on the back of strong activ ity in Asia, Gulf Cooperation Council markets and the US, there is persistent uncertainty in the outlook, in large part because of the geopolit ical context. This uncertainty will create new risks, but also new opportunit ies in fast-growing trade corridors, sustainable development, and cross-border wealth. This context isn’t new: in recent years, trade routes have been rewired, with many of our markets acting as a channel between east and west. There are opportunit ies for our bus iness, anchored in our footprint markets. And also for the world at large, as we have seen concerted efforts to improve supply chain resil ience, includ ing reduc ing carbon footprints. At the same time, we must guard against unnecessary frict ion that raises costs for all involved. We should all remember that, over the last half a century, trade has been a key driver in powering global economic growth, improv ing l iv ing standards and reducing household consumption costs. And open trade and investment will be crucial if we are to leverage the full beneﬁts of the global technology transformation, and to continue to invest in addressing climate change – includ ing in the resil ience of markets most exposed to its impacts. I remain optim ist ic that, working together, businesses and governments around the world can power world trade and the next wave of global growth. In that, our role as a super connector is crit ical in realis ing our value as a Group that operates in service of our clients and other stakeholders. Dr José Viñals Group Chairman 21 February 2025 08 Standard Chartered – Annual Report 2024 Strategic report Group Chief Executive’s review Group Chief Executive’s review Our team has worked hard to make our bank focused, strong and proﬁtable. We made good progress over the past several years and 2024 marked further improvement. We have more that we can do and remain focused on further strengthening our business and growing our returns. We are a global bank connecting corporate, inst itut ional and afﬂuent clients to a network that offers unique access to sustainable growth opportunit ies across As ia, Africa and the Middle East. This dist inct ive proposit ion puts us in good stead to help our clients navigate the dynamic condit ions we saw throughout the year. As a result, we performed strongly in 2024, deliver ing on our target to continue to increase our return on tangible equity (RoTE), posting 11.7 per cent for 2024, up 160 basis points on 2023, and we remain on-track to achieve our 2026 target of approaching 13 per cent. Income of $19.7 bill ion was up 14 per cent on a constant currency basis, supported by an encouraging performance across our big engines of non-net interest income, includ ing a record performance in Wealth Solutions, with income up 29 per cent, and double-dig it growth in Global Markets and Global Banking. Good cost disc ipl ine has enabled us to generate posit ive income-to-cost jaws, even with continued underlying investments. Credit impa irment rose 5 per cent year-on-year, mainly from higher charges in Wealth & Retail Banking (WRB), while Corporate & Investment Banking (CIB) beneﬁtted from recoveries. The broader portfolios have proved resil ient, and we remain vig ilant in the face of a volatile global environment. All this has helped to increase underlying proﬁt before tax by 21 per cent year-on-year to $6.8 bill ion. Our strategy of combin ing d ifferent iated cross-border capabil it ies for corporate and inst itut ional clients with leading wealth management expertise for afﬂuent clients is working. In CIB, we have increased cross-border (network) income by 11 per cent compound annual growth rate (CAGR) since 2019, and it is now 61 per cent of total CIB income. We also recently announced a long-term strategic partnership with Apollo to support and accelerate ﬁnancing for infrastructure, clean transit ion and renewable energy globally. In WRB, we cont inue to build on our strengths in afﬂuent, with $44 bill ion of net new money in 2024, up 61 per cent on prior year. This is equivalent to a strong 16 per cent growth of afﬂuent assets under management coming from net new money. Also, earlier in 2024 we set-up our ﬁrst global variable capital company in Singapore, through which we offer hard-to-access custom- created investment strategies exclusively to our clients, and have subsequently launched two such sub-funds. We remain highly liqu id, w ith a diverse and stable deposit base, and a liqu id ity coverage ratio of 138 per cent. We are well capital ised, ﬁnish ing the year with a Common Equity Tier 1 (CET1) ratio of 14.2 per cent, above our target range, allowing us to increase our full-year ordinary div idend by 37 per cent to 37 cents per share. With the proposed ﬁnal div idend and the $1.5 bill ion share buyback announced today, our total shareholder returns announced since the full-year 2023 results is $4.9 bill ion, well on our way to the at least $8 b ill ion three-year cumulative target. As we look to the year ahead, I would like to offer my thanks to our much valued and long-standing colleague, José Viñals, who will step down as our Group Chairman later this year. José has been a great partner to me and the members of our Board. During his tenure he has been a tireless advocate and champion of our business. Under his dil igent stewardsh ip as Chairman, he has helped steer the Group and made a meaningful contribut ion to the strong pos it ion we hold today. By embodying our brand promise, here for good, he has also played crit ical roles in contribut ing to the development of the internat ional ﬁnance sector and in mobil is ing sustainable ﬁnance in service of our markets. In wish ing José a fond farewell, I would also l ike to extend a warm welcome to Maria Ramos who will succeed José as the Group Chair, subject to regulatory approval. Maria ﬁrst jo ined “Executing a clear strategy, deliver ing improv ing returns and increas ing shareholder distr ibut ions” Bill Winters Group Chief Executive 09 Standard Chartered – Annual Report 2024 Strategic report our Board as an Independent Non-Executive Director in January 2021, and she was appointed Chair of the Board Risk Committee and Senior Independent Director in 2022. Maria is a seasoned leader and former banker, with a wealth of experience from leadership posit ions w ith in the pr ivate and public sectors. She also has extensive internat ional non-executive and Chair experience as well as a deep understanding of operating across emerging and developing markets. Taking action to concentrate resources on areas of greatest strength Our strategy is designed to deliver our purpose, to drive commerce and prosperity through our unique divers ity. Th is is underpinned by our brand promise, here for good. In our Q3’24 results, we set out a series of further actions to double down on our strategy of combin ing d ifferent iated cross-border capabil it ies for corporate and inst itut ional clients with leading wealth management expertise for afﬂuent clients. We will concentrate capital and investment in our areas of greatest different iat ion and competit ive strength, further s impl ify ing our business and helping us to generate higher quality growth, deliver sustainably higher returns and improve our RoTE over the medium term. We have set ourselves ambit ious goals that al ign to deliver ing this strategy and we also upgraded our 2026 RoTE target from 12 per cent to approaching 13 per cent. These goals, outlined below, supersede the commitments we previously announced with our 2023 results in February last year. • In our CIB business, we will continue to sharpen our focus on serving the cross-border needs of our larger global corporate and ﬁnancial inst itut ion clients. We are optim is ing resource allocation by reducing the number of clients whose needs do not play directly to our strengths. • As a result of these actions, we are targeting to increase income from ﬁnanc ial inst itut ion clients to around 60 per cent of CIB over the medium-term (51 per cent in 2024), and to increase the percentage of cross-border (network) income to around 70 per cent (61 per cent in 2024). • In our WRB business, we are solid ify ing our posit ion as a leading wealth manager in Asia, Africa and the Middle East with a different iated, fast-grow ing and high-returning internat ional afﬂuent franch ise. This will be enabled by invest ing $1.5 b ill ion over ﬁve years in our wealth and dig ital platforms, client centres, people and brand and marketing, to accelerate income growth and returns. This investment will be funded by reshaping our mass retail business to focus on developing a strong pipel ine of future afﬂuent and internat ional cl ients. • We are conﬁdent that our increased investment and greater concentration will help us to outperform the market in terms of asset gathering and income growth over the medium term, and we are therefore targeting $200 bill ion of net new money from 2025 to 2029, a double-dig it CAGR in Wealth Solutions income from 2024 to 2029, and for afﬂuent income share of WRB income to reach 75 per cent by 2029, from 68 per cent in 2024. • In Ventures, SC Ventures will continue to promote a culture of innovat ion across the Group, invest ing in disrupt ive ﬁnancial technology and creat ing alternative ﬁnanc ial services and business models. As our portfolio matures, we expect to generate gains on sales or mergers of our ventures and will increas ingly obta in third party funding for expansion of ventures, demonstrating the economic value we are creating. And we expect our two dig ital banks, Mox and Trust, to be proﬁtable in 2026. Strong progress in our leading sustainab il ity business Our leading sustainab il ity capabil it ies are an integral part of our client offering across all our business segments, and the Group as a whole. We have had another year of strong growth in Sustainable Finance income, which is up 36 per cent year-on- year in 2024, to $982 mill ion, and is very close to our 2025 target of over $1 bill ion. We have mob il ised $121 b ill ion of Susta inable Finance since the beginn ing of 2021, mak ing good progress as we advance towards our $300 bill ion target by 2030. Looking forward, in CIB we will continue to scale Sustainable Finance and support our clients’ transit ion journeys across our markets. In WRB, we will integrate sustainable investments into our Wealth Solutions proposit ions and leverage bank- wide sustainab il ity capabil it ies as a key different iator to our afﬂuent clients. Turning to our net zero roadmap, in 2024 we continued to deliver against our net zero commitments, completing the baseline and target setting for our 12 highest emitt ing sectors. But we also recognise that achiev ing our net zero by 2050 target requires active collaboration and engagement with our clients to support and accelerate their transit ion and I am therefore pleased to share that we have published our inaugural Transit ion Plan alongs ide this Annual Report. This year, we also demonstrated our commitment to protecting and restoring nature by becoming an early adopter of the Taskforce on Nature-related Financ ial D isclosures. Build ing on our ambit ion to sh ift ﬁnanc ial ﬂows towards nature-pos it ive outcomes, we also partnered with the Government of The Bahamas, The Nature Conservancy, the Inter-American Development Bank, and other ﬁnancial partners to launch an innovat ive debt convers ion, expected to generate $124 mill ion for marine conservation. Improving operational leverage through the Fit for Growth programme In February last year, we launched our bank-wide, three-year, Fit for Growth programme, which is focused on taking actions to transform the way we operate, addressing structural ineff ic ienc ies and complex ity to simpl ify, standard ise and dig it ise key elements of our business, setting the stage for accelerated growth. This programme is targeting to deliver around $1.5 bill ion of expense savings over three years, and we expect to incur a sim ilar amount in terms of the cost to achieve these sustainable organisat ional and ﬁnancial beneﬁts, creat ing lasting capacity to reinvest in our growth. Since its launch we have progressed the programme at pace, having mobil ised over 200 projects dur ing 2024, with in it iat ives that focus on sustainable structural improvements. We expect the majority of the $1.5 b ill ion of sav ings to ramp up from 2025, with a tail of efﬁc iency effects cont inu ing after 2026, albe it several projects executed in 2024 have achieved the equivalent of around $0.2 bill ion of annual ised savings. We expect to incur around 60 per cent of the $1.5 bill ion cost-to-ach ieve by the end of 2025. We remain committed to deliver ing pos it ive jaws each year on an underlying basis, and for costs to be below $12.3 bill ion in 2026. Deliver ing substant ial shareholder distr ibut ions Our equity generation and disc ipl ine on risk-weighted assets this year have created capacity for us to continue to deliver substantial shareholder distr ibut ions, and in our Q3’24 results we substantially increased our shareholder distr ibut ion target from at least $5 bill ion to at least $8 b ill ion from 2024 to 2026. 10 Standard Chartered – Annual Report 2024 Strategic report Group Chief Executive’s review We remain committed to sharing our success with our shareholders and will continue to actively manage our capital posit ion w ith this object ive in mind. We are therefore announcing today a further share buyback programme of $1.5 bill ion, to commence imm inently. Th is new share buyback, and a proposed ﬁnal div idend of $679 m ill ion, br ings our total shareholder returns announced since the full-year 2023 results to $4.9 bill ion, well on our way to our improved target of at least $8 bill ion. Optim ist ic outlook for the markets in our footprint Looking forward, we expect the global growth rate to be broadly ﬂat in 2025, moderating down slightly to 3.1 per cent from 3.2 per cent in 2024, but then accelerating in 2026 to 3.3 per cent. Support from looser ﬁnancial cond it ions and expansionary ﬁscal policy may be partly offset by protection ist trade polic ies and interest rates that remain high. Growth in our footprint markets across Asia, Africa and the Middle East, is set to outpace global growth, with Asia expanding by 4.8 per cent in 2025, Africa growing by 4.3 per cent and the Middle East (includ ing Pak istan) by 3.6 per cent. We expect growth in the Associat ion of Southeast Asian Nations (ASEAN) and India to remain healthy, despite the moderating outlook for key western trade partners, and we are uniquely posit ioned to take advantage of th is with our unparalleled presence in all 10 ASEAN markets, as well as being one of the largest internat ional banks in South Asia. Our clients ﬁnd immense value in partnering with us to solve complicated problems for them in the markets we call home. While we are anchored in Asia, Africa and the Middle East, our footprint is global and our deep knowledge of, and expertise in, doing business across our network is hard to replicate. This is our time We are a unique organisat ion – a d iverse, global business with unparalleled cross-border reach and capabil it ies. As the world gets more complicated, we become more crit ical to our clients because we, like no other, understand how to navigate those complexit ies. We have delivered a strong ﬁnanc ial performance in 2024 demonstrating the value of our franchise and the strength of our strategy. Looking forward, we are targeting a RoTE approaching 13 per cent in 2026, and for it to progress thereafter. We aim to deliver this through strong income growth, improv ing operational leverage aided by our Fit for Growth programme and mainta in ing our responsible approach to risk and capital. Our recent success has made us ambit ious and conﬁdent for more. My Management Team and I remain focused on deliver ing on our targets, se iz ing the structural underly ing growth opportunit ies we have, transform ing how we work, deliver ing better exper iences for clients and colleagues, and creating exceptional long-term value for our shareholders. Finally, I would like to acknowledge the remarkable efforts of our colleagues again this year. Their impress ive ded icat ion to our clients and the communit ies that we serve help to man ifest our brand promise of here for good. Bill Winters Group Chief Executive 21 February 2025 11 Standard Chartered – Annual Report 2024 Strategic report Bill Winters, CBE Group Chief Executive Diego De Giorg i Group Chief Financ ial Ofﬁcer Alvaro Garrido Interim Group Chief Information Ofﬁcer Roberto Hoornweg Co-Head, Corporate & Investment Banking Benjamin Hung President, International Judy Hsu CEO, Wealth & Retail Banking Mary Huen CEO, Hong Kong and Greater China & North Asia Tanuj Kapilashram i Chief Strategy & Talent Ofﬁcer Sunil Kaushal Global Co-Head, Corporate & Investment Banking Alex Manson CEO, SC Ventures Sadia Ricke Group Chief Risk Ofﬁcer Darrell Ryman Interim Group Chief Operating Ofﬁcer Read more on the management team on pages 110 to 112 . Management Team 12 Standard Chartered – Annual Report 2024 Strategic report Key performance ind icators Key performance ind icators We measure our progress against Group key performance ind icators (KPIs), as detailed below, as well as client KPIs, which can be found on pages 21 to 23. Our Group KPIs include non-ﬁnanc ial measures reﬂecting our commitment to build an engaged, diverse and inclus ive culture and support social and environmental outcomes. Aim Mainta in a strong cap ital base and Common Equity Tier 1 (CET1) ratio. Progress in 2024 The Group remains well capital ised and highly liqu id w ith a CET1 ratio of 14.2 per cent above our target range, enabling the Board to announce a 37 per cent increase in the full-year div idend and a $1.5 bill ion share buyback programme to start imm inently. The components of the Group’s capital are summarised in the Capital review on pages 270 to 274 . 47.5% 47.5 % 2024 2023 9.4 % 2022 41.4 % 2021 (2.0) % 2020 (34.6) % 14.2 % 2024 2023 14.1 % 2022 14.0 % 2021 14.1 % 2020 14.4 % Common Equity Tier 1 ratio (CET1) 1 % +19bps Aim Deliver sustainable improvement in the Group’s proﬁtabil ity as a percentage of the value of shareholders’ tangible equity. Progress in 2024 Our strategy to drive improved levels of return on tangible equity (RoTE) is working. RoTE for the year of 11.7 per cent is 160 basis points higher year-on-year. 1 The underlying proﬁt attributable to ordinary shareholders expressed as a percentage of average ordinary shareholders’ tangible equity. 2 2021 and 2022 have been restated to reﬂect market and business exits announced in Q1 2023. 11.7 % 2024 2023 10.1 % 2022 2 7.7 % 2021 2 6.5 % 2020 3.0 % Underlying return on tangible equity (RoTE)¹ % +160bps Alignment to remuneration Alignment to remuneration Aim Deliver a posit ive return on shareholders’ investment through share price appreciat ion and d iv idends pa id. Progress in 2024 Our total shareholder return for the full year was 47.5%. 3 Combines simple share price appreciat ion w ith div idends pa id to show the total return to the shareholder and is expressed as a percentage total return to shareholders. Total shareholder return (TSR) 3 % Alignment to remuneration Financ ial KPIs 13 Standard Chartered – Annual Report 2024 Strategic report Alignment to remuneration Reward for all Group employees, includ ing execut ive directors, continues to be aligned to the Group’s strategic prior it ies, through our annual and long-term incent ive scorecards. Our approach to remuneration is consistent for all employees and is designed to create alignment with our Fair Pay Charter, which applies globally. However, our pay structures may vary according to location (to comply with local requirements). Variable remuneration falls into two categories: annual incent ive and a long-term incent ive plan (LTIP) which are aligned to the KPIs ind icated. Annual incent ive is based on measurable performance criter ia l inked to the Group’s strategy and assessed over a period of one year. LTIP awards are granted to senior executives who have the abil ity to inﬂuence the long-term performance of the Group. Awards are performance dependent based on measurable, long-term criter ia. Read more in our Directors’ remuneration report on pages 143 to 174 . Aim Increase representation 4 of women in senior leadership roles 5 globally to 35 per cent by the end of 2025. Progress in 2024 In 2024, the proportion of senior leadership roles occupied by women has increased to 33.1 per cent. This is up by 0.6 percentage points from December 2023 (32.5 per cent) and up 7.8 percentage points since December 2016 (25.3 per cent). 4 Subject to local legal requirements 5 Senior leadership is deﬁned as Managing Director and Band 4 roles (includ ing the Group Management Team). Aim Cumulative progress towards our commitment to mobil ise $300 b ill ion between 2021 and 2030. Progress in 2024 We made strong progress against this target during the year. Read more on pages 69 to 73 6 We deﬁne mobil isat ion of sustainable ﬁnance as any investment or ﬁnancial serv ice provided to clients that supports: (i) the preservation and/or improvement of biod ivers ity, nature or the environment; (i i) the long-term avoidance/decrease of GHG emiss ions, includ ing the alignment of a client’s business and operations with a 1.5 degree Celsius trajectory (known as transit ion ﬁnance); ( i i i) a social purpose; or (iv) incent iv is ing our cl ients to meet their own sustainab il ity objectives (known as susta inab il ity-linked ﬁnance). It is a measure of total capital mobil ised and cons iders the total value of the committed facil it ies provided. 7 Figures reﬂect cumulative sustainable ﬁnance mobil ised s ince January 2021 up to September of each year. Divers ity and inclus ion: women in senior roles 4 % Mobil isat ion of sustainable ﬁnance 6,7 +0.6 ppt +$34 bn 33.1 % 2024 2023 32.5 % 2022 32.1 % 2021 30.7 % 2020 29.5 % 20.44 2024 2023 25.86 2022 17.55 2021 12.94 2020 17.51 $ 121 bn 2024 2023 $ 87 bn 2022 $ 57 bn 2021 The Group announced this target in Q4 2021. Aim Improve the overall employee experience across the Group by creating a better work environment for our colleagues that should translate into an improved client experience. Progress in 2024 While the eNPS score dropped by 5.42 points to 20.44 from 25.86 in 2023 (which was our highest ever score), it continues to be stronger than previous years. 8 eNPS ranges from -100 to +100 and is based on a single question which measures whether colleagues would recommend working for the Bank. It is calculated by deducting the percentage of detractors from the percentage of promoters. Employee net promoter score (eNPS) 8 -5.42 points Alignment to remuneration Alignment to remuneration Alignment to remuneration Non-ﬁnancial KPIs 14 Standard Chartered – Annual Report 2024 Strategic report Market environment Market environment Trends in 2024 • Global GDP growth held at 3.2 per cent in 2024, the same as 2023, as central banks began to loosen policy in the face of declin ing inﬂat ion. • Asia was the best-performing region, recording growth of 5.0 per cent as ASEAN economies in particular were supported by improv ing tour ism and the semiconductor upcycle. Growth in China was slower relative to 2023, but appeared to have accelerated in Q4 helped by policy support. Growth in India normalised to 6.2 per cent from 8.2 per cent in 2023. • Sub-Saharan Africa likely saw growth of 3.4 per cent in 2024, an improvement from 3.1 per cent in 2023, supported by easing global ﬁnanc ial cond it ions, the region’s continued recovery from COVID-19 cris is and country-specif ic factors. • Among the majors, the US economy remained resil ient, with growth improv ing to 2.7 per cent from 2.5 per cent in 2023, led by personal consumption, despite recent signs of softening in the labour market. Growth also recovered in the UK to 0.9 per cent in 2024 as inﬂat ion fell and demand recovered. The euro-area economy grew by 0.7 per cent in 2024, following 0.4 per cent growth in 2023, as growth was constrained by weak investment. In most majors, labour markets remained strong, but there are signs of softening. • Major central banks like the Federal Reserve and European Central Bank started to loosen monetary policy from mid-2024 onwards as inﬂat ion showed clearer signs of returning to target levels, while ﬁscal policy remained accommodative in the US. Outlook for 2025 • We expect global economic growth to be broadly ﬂat in 2025, slowing slightly to 3.1 per cent from 3.2 per cent in 2024. Support from looser ﬁnanc ial condit ions and expans ionary ﬁscal policy may be partly offset by protection ist trade pol ic ies and still-high interest rates in the US and elsewhere. • The US economy is set to moderate in 2025, after a resil ient 2024 performance desp ite elevated interest rates. The euro area continues to struggle; major European economies includ ing Germany and France risk slipp ing into recession. Asia is relatively healthy, although growth at the regional level is set to moderate slightly in 2025 as both China and India slow. The Gulf Cooperation Council (GCC) should also remain a bright spot for global growth, with the region’s non-oil growth exceeding overall global growth. • The global economy is facing heightened uncertainty following the US elections. The risk of a tit-for-tat tariff war has increased with US tariffs on China already resulting in retaliatory tariffs on US imports. The US is also threatening to impose tariffs on other trading partners. Tariff wars are likely to result in further trade divers ion and a reor ientat ion of supply cha ins. • Expectations of a shallower rate cutting cycle from the Fed is likely to translate into a stronger USD and a steeper US yield curve. Higher US rates and a stronger USD will make it harder for emerging market issuers to borrow in internat ional cap ital markets, and could sign iﬁcantly reduce portfol io ﬂows to emerging markets. In addit ion, emerg ing market central banks may be constrained from cutting rates meaningfully. • On the geopolit ical front, markets w ill be eager to see if President Trump is able to end the war in Ukraine and whether the cautious hope which has emerged on the Middle East’s front outlook proves sustainable. Medium- and long- term view Broader global trends • Long-term growth in the developed world is constrained by ageing populations and high levels of debt. • Ris ing nat ional ism, ant i-globalisat ion and protection ism are threats to long-term growth prospects in emerging markets. • However, there are potential offsets. Higher capex to meet sustainab il ity targets, and moves towards dig ital isat ion could boost product iv ity growth, prov ing an antidote to economic scarring concerns. With in emerging markets, countries in Asia are best placed to take advantage of dig ital isat ion, includ ing generat ive artif ic ial intell igence (AI). • Relatively younger populations, and the adoption of dig ital technology, w ill allow emerging markets to become increas ingly important to global growth. • In order to meet net-zero targets, energy-related spending will have to increase sign iﬁcantly; headw inds include insuff ic ient funds across emerging markets, labour shortages and supply chain constraints. The world under Trump 2.0 • Trump’s victory in the US elections is likely to have sign iﬁcant impl icat ions for the exist ing geopol it ical environment through the impact for global climate policy, the UN, Bretton Woods inst itut ions, and US relations with the EU. • Trump has pledged to use import tariffs to reduce the US trade deﬁcit and br ing production back to the US. While this process has begun, uncertainty around the scope and extent of tariff action from the US and likely retaliat ion by trade partners m ight act as drags on consumer and investor conﬁdence, slowing growth. • Global trade has remained resil ient in the face of ris ing protection ism over the past decade. However, an escalation in tariff wars has the potential not only to accelerate the reorientat ion of supply cha ins already under way but also lead to lower global trade overall. • Expectations of spending on defence and infrastructure together with possible tax cuts is likely to be inﬂat ionary and could see the Fed terminal rate settling at a higher level than in the pre-pandemic period. • This would sign iﬁcantly change the global fund ing environment for emerging markets. The external funding environment for emerging markets will likely be tougher as US Money Market rates could stay elevated with a higher Fed terminal rate. • Emerging market economies that are more domestically driven and have better ﬁscal and monetary buffers to offset external shocks are likely to be more resil ient to external shocks. Global macro trends: Macroeconomic factors affecting the global landscape 15 Standard Chartered – Annual Report 2024 Strategic report • The US economy is likely to stay on a healthy footing, with layoffs remain ing low and consumer and business sentiment staying strong. Tighter ﬁnanc ial cond it ions towards end- 2024 could bring some growth softness in H1 2025 before returning to trend in H2 2025. • Slowing growth and a softening labour market should allow the Fed to continue with cautious easing. • Trade and ﬁscal polic ies pledged by the incom ing adm in istrat ion increase uncertainty around monetary policy decis ions in the wider region; the Fed may have to tighten slightly in 2026 when the impact of stimulus and tariffs hits. • A more accommodative regulatory environment in the US could further boost investment sentiment and productiv ity growth. • In Latin America, ris ing ﬁscal r isks have weighed on investor sentiment towards the region. High borrowing costs, legislat ive uncerta inty and lacklustre growth momentum are likely to continue challenging the ﬁscal outlook. • China is likely to bear the brunt of US tariff policy, with in it ial US tariffs being met by retaliatory tariffs from China. The authorit ies are prepar ing for the potential fallout by deliver ing add it ional st imulus to support the domestic economy. In late September, China pivoted towards more aggressive policy easing that helped generate a Q4 rebound. In December, the top planning meeting adopted a pro-growth stance for 2025, pledging to raise the deﬁc it rat io and loosen monetary policy. The authorit ies appear determ ined to tap the policy space to offset a potentially sharp increase in the US tariffs, focusing more on consumption than investment. • Net exports have contributed sign iﬁcantly to Ch ina’s growth in 2024; this contribut ion is expected to decline substantially in 2025. However, the real-estate sector – which has weighed heavily on growth for the past few years – is likely to be less of a drag in 2025 as supportive polic ies take effect. • While The People’s Bank of China is expected to keep monetary policy loose, expansionary ﬁscal policy will be the biggest source of support for 2025 growth, in our view. We expect China’s economy to grow 4.5 per cent in 2025. • Hong Kong is likely to be disproport ionally affected by outs ized US trade measures targeted against China. The US–China trade war under Trump 1.0 pushed Hong Kong to trade more with China and ASEAN (at the expense of trade with the US and Europe); this secular trend could accelerate as global supply chains reorient around new US tariff threats. We believe Hong Kong still has a key role to play as China’s ‘super-connector’ as South-South trade and investment links expand in an increas ingly fragmented world. • Growth in South Korea is likely to slow in 2025, reﬂecting ris ing uncerta inty on external demand due to likely protection ist pol ic ies under Trump 2.0. Th is may weigh heavily on ﬁrms’ investment incent ives, part icularly in export-driven industr ies. • India’s growth has likely moderated to 6.2 per cent in 2024 and 6.5 per cent in 2025 from 8.2 per cent in 2023, owing to a cyclical slowdown in urban demand, and delays in the private sector investment cycle. However, the likel ihood of more measures to improve INR liqu id ity, a shallow rate cutting cycle and a large income tax cut delivered in the recent budget are likely to provide a ﬂoor. The government remains focused on ﬁscal consolidat ion, albeit gradually amid slowing domestic growth and external uncertainty. • We expect growth in ASEAN to remain healthy but slow slightly in 2025 versus 2024 due to the effects of monetary tighten ing and the moderat ing economic outlook for key trade partners – namely the US, the euro area and China. Trade-reliant economies like Singapore, Vietnam, Malaysia and Thailand are exposed to US trade polic ies. Even if they are not directly targeted by tariffs or other measures, Asia’s small, open economies could be hit by spillover from China in the short term. • Larger and more domestically driven economies – includ ing Ind ia, Indonesia and the Phil ipp ines – may be less affected but are not immune to a sign iﬁcant h it to China and/ or global trade. Over the medium term, however, we expect ASEAN to continue to attract strong foreign direct investment ﬂows as investors seek to divers ify the ir operational capacity and tap new markets. • Asian central banks focused on FX stabil ity are l ikely to scale back their rate-cutting cycles due to sharply reduced Fed easing expectations, the spectre of a stronger USD in 2025, and an uncertain Asian trade environment. For India, we mainta in our call for 50bps of rate cuts; we think monetary policy will focus more on the growth and inﬂat ion impact of US trade polic ies than on FX concerns. For the reg ion’s small, open economies, negative currency spillover may have less inﬂuence on policy decis ions in the coming year. Singapore has already eased monetary policy in January and we expect Thailand to lower rates further in 2025. Regional outlook Americas 2025 2024 China 2025 2024 Hong Kong 2025 2024 Korea Greater China and North Asia Actual and projected growth by market ASEAN and South Asia 2025 2024 India 2025 2024 Indonesia 2025 2024 Singapore Actual and projected growth by market 4.5% 5.0% 6.5% 6.2% 2.2% 2.5% 5.0% 5.0% 1.6% 2.0% 2.5% 3.8% Actual and projected growth by market US 2025 2024 1.8% 2.7% 16 Standard Chartered – Annual Report 2024 Strategic report Strategic report Market environment • While escalating global trade tensions and higher US Treasury yields are downside risks to Sub-Saharan Africa, stepped-up ﬁscal stimulus in China may eventually support the region’s commodity-dependent economies. Sub-Saharan Africa trade dependency on the US has declined in recent years, reﬂecting greater US energy self-sufﬁc iency; the EU is the region’s largest trading partner, followed by China. • Domestic reform momentum remains strong in South Africa and Niger ia, the reg ion’s two largest economies; this may provide a buffer against global uncertainty. South Africa’s Government of National Unity has invested sign iﬁcant pol it ical cap ital in ensuring that growth-boosting structural reforms yield meaningful div idends. South Afr ica may adopt a formal rule to lim it its ﬁscal deﬁc it and reassure on debt levels in 2025 and eventually a lower inﬂat ion target, as it aims to regain its investment-grade status in the medium term. Faster growth will be crit ical to stab il is ing South Africa’s debt. • Niger ia has embarked on content ious fuel subsidy and FX liberal isat ion reforms, trigger ing higher inﬂat ion. 2025 should br ing greater FX and price stabil ity, as well as offshore investor interest in Niger ia’s local-currency debt market. However, N iger ia rema ins exposed to a material decline in oil prices, which could negatively impact oil revenues and FX earnings. • 2025 should also see the rehabil itat ion of economies that have recently concluded debt restructuring agreements. While ﬁnal agreements with non-Eurobond creditors are still awaited in Zambia and Ghana, the economic outlook for both countries is set to stabil ise. Zambia should see sign iﬁcant growth ga ins following a recent drought. Ghana’s inﬂat ion should stabil ise somewhat after the country’s December 2024 elect ions; post-election years are often characterised by greater ﬁscal restraint (but also slower growth momentum). • While new external debt restructurings in the region look unlikely in 2025, liqu id ity pressures – and how they are navigated – will be closely watched. Dependence on internat ional ﬁnancial inst itut ions for liqu id ity support has increased in recent years in economies such as Kenya. Kenya is now likely to focus on attracting greater private ﬂows, with a reliance on public-private partnerships to boost capital spending. • The Euro area economy is likely to struggle in the face of structural headwinds – includ ing poor competit iveness and h igh energy costs – as well as external pressures from possible US trade protection ist measures. Wh ile there are recession risks in Germany and France, private consumption should help to keep overall European growth posit ive as interest rates fall and labour markets remain tight. • The ECB is set to continue cutting into accommodative territory as inﬂat ion returns to target and growth is weak. Fiscal policy is unlikely to offer a sign iﬁcant ta ilw ind to growth as countries must adhere to EU rules, although ﬂexib il ity could be applied if growth weakens sign iﬁcantly. • UK growth should be supported in 2025 as the Bank of England continues to cut interest rates and the government pursues pro-growth reforms alongside an improvement in trading relations with the EU. However, the government is also likely to tighten spending in the coming months, to ensure it keeps with in its own ﬁscal rules. • In Central and Eastern Europe, external spillovers weigh on domestic growth, while labour market tightness and ﬁscal pressures delay central bank easing. President ial elect ions in Poland and legislat ive elect ions in Czechia this year pose uncertainty for investors. Europe 2025 2024 • Despite some pressure on the energy sector, we expect the GCC to remain a bright spot for global growth in 2025, with the region’s non-oil growth exceeding overall global economic growth. With the exceptions of Saudi Arabia and Bahrain, most of the region’s ﬁscal breakeven oil prices remain low. In some cases they have declined; for Oman, this has prompted consecutive credit rating upgrades. Investment in the non-oil sector will continue to drive economic activ ity in 2025, while lower interest rates should beneﬁt interest rate- sensit ive sectors such as hous ing in Saudi Arabia, the UAE and Qatar. • Lower geopolit ical r isk and supported oil prices should bode well for the Middle East and North Africa (MENA) region in 2025. De-escalation of the regional conﬂict should have posit ive ram if icat ions for external funding in Egypt and Lebanon. On the trade front, the GCC – and the UAE in particular – will continue to beneﬁt from ris ing South–South trade as global trade is re-routed in a more fragmented world. Middle East Africa Regional outlook 2025 2024 Euro area Actual and projected growth by market Niger ia 2025 2024 Actual and projected growth by market UK Actual and projected growth by market UAE 2025 2024 3.8% 3.5% 5.0% 4.0% 1.0% 0.9% 0.8% 0.7% 2025 2024 South Africa 2025 2024 Kenya 2.0% 1.1% 4.7% 4.5% 17 Standard Chartered – Annual Report 2024 Strategic report Highl ight ing the impact of extreme weather and climate change The Standard Chartered Weather Photographer of the Year competit ion h ighl ights capt ivat ing weather and cl imate images by amateur and professional photographers. In 2024, our Malaysian colleague Nur Syaireen Natasya Bint i Azaharin came ﬁrst in the smartphone category, with her image ‘Volcanoes’. The other winners were: • Main prize: Wang Xin, from China; ‘Sprites Dancing in the Dark Night’ • Youth prize: Angelina Widmann, from Austria; ‘Rain Aria’ • Public vote and Climate Award: Gerson Turelly from Brazil; ‘Rowing’. Organised by the UK’s Royal Meteorological Society, the competit ion helps to ra ise awareness about the impact of extreme weather and the changing climate across our markets. Read more at sc.com/scwpy Image credit: ‘Volcanoes’ by Nur Syaireen Natasya Bint i Azahar in Strategy Strategic report Our strategy 18 Standard Chartered – Annual Report 2024 Our strategy is designed to deliver our purpose: to drive commerce and prosperity through our unique divers ity. Th is is underpinned by our brand promise, here for good. Cross-border Afﬂuent Invest $1.5 bill ion over ﬁve years in our wealth and dig ital platforms, cl ient centres, people, brand, and marketing, to accelerate income growth and returns Reshape our mass retail business to focus on developing a strong pipel ine of future afﬂuent and internat ional bank ing clients Solid ify our pos it ion as a lead ing wealth manager in Asia, Africa and the Middle East with a different iated, fast-grow ing and high-returning internat ional afﬂuent franch ise Optim ise resource allocat ion by reducing the number of clients whose needs do not play directly to our strengths Continue to sharpen our focus on serving the cross-border needs of our larger global corporate and ﬁnancial inst itut ion clients Concentrate our efforts on enhancing our cross-border product and advisory suite to meet our clients’ complex needs Cross-border income: ~70% of CIB in medium term Income from ﬁnancial inst itut ion clients: ~60% of CIB in medium term Afﬂuent income: ~75% of WRB by 2029 Wealth Solutions income: Double-dig it CAGR from 2024 to 2029 We are a global bank connecting corporate, inst itut ional and afﬂuent clients to a network that offers unique access to sustainable growth opportunit ies across As ia, Africa and the Middle East. Strategic prior it ies Afﬂuent …with leading wealth management expertise Cross-border Combin ing d ifferent iated cross-border capabil it ies... Sustainab il ity Integrate sustainable investments into our Wealth Solutions proposit ions and leverage bank-wide sustainab il ity capabil it ies as a key different iator to our afﬂuent cl ients Continue to scale sustainable ﬁnance and support to our clients’ transit ion journeys across our markets Our business model reﬂects our strategy of combin ing d ifferent iated cross-border capabil it ies with leading wealth management expertise. Our business model 19 Standard Chartered – Annual Report 2024 Our leading Sustainab il ity business is an integral part of our client offering across all our business segments, and the Group as a whole. Read more on page 57 Responsible business practices Bespoke sustainable ﬁnance solutions Innovation in service of our markets We strive to be a responsible business by operational is ing our net zero targets, managing environmental and social risks, and acting transparently. We offer sustainable ﬁnance solutions designed to help our clients address environmental and social challenges and achieve sustainable growth. We advocate in service of our markets to unlock the areas where capital is not ﬂowing at scale or not at all and to help drive economic inclus ion. Global Markets & Global Banking • Macro, Credit & Commodit ies Trad ing • Lending & Financ ial Solutions • Capital Markets & Advisory Transaction Services • Payments and Liqu id ity • Trade & Working Capital • Securit ies & Prime Services Wealth Solutions • Investments • Bancassurance • Wealth advice • Portfolio management Retail Products • Deposits • Mortgages • Credit cards • Personal loans Our key products and services Corporate & Investment Banking (CIB) Supports large corporations, development organisat ions, governments, banks and investors in accessing cross-border trade and investment opportunit ies. Read more on page 21 Wealth & Retail Banking (WRB) Serves the local and internat ional banking needs of clients across the wealth continuum from Personal to Prior ity and Pr ivate Banking, as well as small and medium enterprises. Read more on page 22 Ventures Promotes a culture of innovat ion across the Group, invest ing in disrupt ive ﬁnancial technology and creating alternative ﬁnanc ial serv ice business models, as well as growing our dig ital banks – Mox and Trust. Our business segments Strategic report Read more on page 23 20 Standard Chartered – Annual Report 2024 Strategic report Business model Clients We deliver banking solutions for our clients across our network both dig itally and in person. We help ind iv iduals grow and protect their wealth while connecting corporates and ﬁnancial inst itut ions to opportunit ies across our network. Regulators and governments We play our part in supporting the effective function ing of the ﬁnancial system and the broader economy by proactively engaging with public authorit ies. Society We strive to operate as a sustainable and responsible company, working with local partners to promote social and economic development. Employees We believe that employee experience drives client experience. We want all our people to pursue their ambit ions, del iver with purpose and have a rewarding career enabled by great people leaders. Suppliers We partner with diverse suppliers, locally and globally, to provide efﬁcient and susta inable goods and services for our business. Investors We aim to deliver robust returns and long-term sustainable value for our investors. Our resources provide the strong foundation that helps us deliver our strategy We create long-term value for a broad range of stakeholders International network Our network is our unique competit ive advantage and connects corporates, ﬁnancial inst itut ions, ind iv iduals and small and medium enterprises across some of the world’s fastest-growing and most dynamic markets. Financ ial strength With our solid balance sheet and prudent ﬁnanc ial management, we are a strong and trusted partner for our clients. Human capital Divers ity d ifferent iates us; it is in our purpose statement. Deliver ing our strategy rests on how we continue to invest in our people, the employee experience and culture. Brand recognit ion We are a leading internat ional bank ing group with 170 years of history. In many of our markets we are a household name. Local expertise We are deeply rooted in the markets where we operate, offering us ins ights that help our cl ients achieve their ambit ions locally and across borders. Technology Our foundations in technology and data act as key enablers in provid ing world class cl ient services. 21 Standard Chartered – Annual Report 2024 Strategic report Client segment reviews Segment overview Corporate & Investment Banking (CIB) supports local and large corporations, governments, banks and investors with their transaction services, banking, and ﬁnanc ial market needs. We prov ide different iated cross-border capab il it ies to over 17,000 clients in some of the world’s fastest-growing economies and most active trade corridors. Our clients operate or invest in 47 markets across the globe. Our strong and deep local presence enables us to co-create bespoke ﬁnancing solut ions and connect our clients multilaterally to investors, suppliers, buyers and sellers. Our products and services enable our clients to move capital, manage risk and invest to create wealth. Our clients represent a large and important part of the economies we serve. CIB is at the heart of the Group’s shared purpose to drive commerce and prosperity through our unique divers ity. We are also committed to promoting sustainable ﬁnance in our markets and channelling capital to where the impact will be greatest. We are deliver ing on our amb it ion to support susta inable economic growth, increas ing support and fund ing for ﬁnanc ial offer ings that have a posit ive impact on our communit ies and env ironment. Strategic prior it ies • Deliver sustainable growth for clients by leveraging our network to facil itate trade, cap ital and investment ﬂows across our footprint markets. • Generate high-quality returns by improv ing income mix, growing capital-lite income and driv ing balance sheet veloc ity, while mainta in ing disc ipl ined risk management. • Be a dig ital-ﬁrst and data-dr iven bank that delivers enhanced client experiences. • Accelerate our sustainable ﬁnance offering to our clients through product innovat ion and enabl ing transit ion to a low-carbon future. Progress • Our underlying income performance was driven by our divers iﬁed product suite, expanded client solutions and optim ised resource allocation by focusing on clients whose cross-border needs played directly to our strengths. Our cross-border income contributed to 61 per cent of total CIB income with growth across strategic corridors. • Resil ient balance sheet qual ity with investment-grade net loans and advances to customers represented 66 per cent of total corporate net loans and advances to customers (2023: 65 per cent). • We increased the share of income from our ﬁnanc ial inst itut ion clients as a percentage of total CIB income, from 49 per cent in 2023 to 51 per cent in 2024. • Active management of pass-through rates helped us to mainta in a balance between pric ing and depos it attrit ion. • Client Dig ital Transact ion Init iat ion stood at 68.3 per cent (2023: 64.5 per cent) largely in Cash, Trade and FX. Client experience remained at the centre of our dig ital transformat ion, with our Customer Satisfact ion Score at 72 per cent (2023: 61 per cent). • We are well on our way towards deliver ing our target of $1 b ill ion income from our Sustainable Finance franchise by 2025, and have mobil ised $121 b ill ion aga inst our $300 bill ion comm itment in sustainable ﬁnanc ing by 2030. Performance highl ights • Underlying proﬁt before tax of $5,581 mill ion increased by 4 per cent at constant currency (ccy) driven by higher income, partially offset by higher operating expenses and other impa irment charge. • Underlying operating income of $11,818 mill ion increased by 6 per cent at ccy primar ily dr iven by strong performance in Global Markets and Global Banking. Global Markets grew by 15 per cent, supported by double-dig it growth in both ﬂow and episod ic income. Global Banking also saw a 15 per cent increase due to higher loan orig inat ion volumes from strong pipel ine execut ion, coupled with improved Capital Markets activ it ies. Transaction Services remained ﬂat, as 12 per cent increase in Securit ies & Pr ime Services income, driven by higher fees and deposit balances were offset by lower margins in Payments and Liqu id ity, and Trade & Working Capital products. • Underlying operating expenses were up by 9 per cent at ccy largely due to investments and higher performance-related pay, partly offset by disc ipl ined hir ing and control over d iscret ionary spend ing. • Credit impa irment was a net release of $106 m ill ion, beneﬁtting from client recoveries, partly offset by a $58 mill ion overlay for clients who have exposure to Hong Kong’s commercial real estate sector. Other impa irment charge pr imar ily related to the wr ite-off of software assets. • Risk-weighted assets of $157 bill ion were up $15 b ill ion ma inly driven by asset growth and higher market RWA. Corporate & Investment Banking Network income as % of total CIB income Contribut ions of F inanc ial Inst itut ions segment as % of total CIB income Aim: Drive growth in high-returning Financ ial Inst itut ions segment Analysis: Share of Financ ial Inst itut ions income improved to 51 per cent in 2024 as we applied continued focus to this segment to drive income and returns 61 % 2024 2023 2022 61 % 54 % 51 % 2024 2023 2022 49 % 47 % Risk-weighted assets (RWA) $157 bn $15bn Proﬁt before taxation $5,581 m 4% underlying basis $5,378 m 6% reported basis Return on tangible equity (RoTE) 19.0 % 50bps underlying basis 18.4 % 227bps reported basis Aim: Drive cross-border income by focusing on strategic corridors with growth potential Analysis: Share of network income improved from 54 per cent in 2022 to 61 per cent in 2023 and 2024 as we focus on serving the cross-border needs of our large global corporate and ﬁnancial inst itut ion clients 22 Standard Chartered – Annual Report 2024 Strategic report Client segment reviews Segment overview Wealth & Retail Banking (WRB) serves more than 13 mill ion ind iv iduals and small businesses, with a focus on the afﬂuent segment which encompasses Private Bank, Prior ity Pr ivate, Prior ity Bank ing, and Premium. In the mass retail space, we are focused on emerging afﬂuent clients who will progress in their wealth journey with us and form the pipel ine of future afﬂuent cl ients. We are a leading wealth manager in Asia, Africa and the Middle East, as our deep local presence and internat ional network enables us to capture the strong structural tailw inds wh ich are driv ing cross-border wealth ﬂows. Our comprehensive product proposit ions span across depos its, payments, ﬁnancing, adv isory, investments and bancassurance. In particular, our open product architecture allows us to collaborate and innovate with product partners to offer best-in-class and ﬁrst-to- market wealth solutions to our clients. We also support our small business clients with their trade, working capital and other banking needs. WRB is closely integrated with the Group’s other client segments; for example, we offer employee banking services to CIB clients, and we also provide a source of high-quality liqu id ity for the Group. Strategic prior it ies • Solid ify our pos it ion as a lead ing internat ional wealth manager and capture Global Chinese and Global Indian opportunit ies, by leveraging our client continuum, global network and expertise in wealth solutions. • Accelerate our investment in afﬂuent frontline teams, wealth and dig ital platforms, and cl ient centres, as well as brand and marketing, to drive income growth and higher returns. • Deliver different iated and adv isory-led wealth proposit ions w ith dig ital-ﬁrst and personal ised experiences, leveraging an open architecture platform. • Enable access to sustainable investments by integrat ing ESG into our Wealth Solutions proposit ions. • Reshape our mass retail business to focus on build ing a strong pipel ine of future afﬂuent and internat ional bank ing clients. • Improve client experience and efﬁc iency v ia continuous innovat ion, dig it isat ion, data analyt ics and process simpl iﬁcation. Progress • Strong momentum in client growth with the addit ion of 265,000 new-to-bank afﬂuent clients, and Net New Money 1 across Prior ity Banking and Private Bank reached $43.6 bill ion, up by 61 per cent year-on-year. • Strengthened cross-border and cross-segment collaboration across our global network to deliver robust growth in internat ional clients (up 18 per cent year-on-year), resulting in 325,000 new internat ional cl ients and a sign iﬁcant contr ibut ion to Assets Under Management. • Continued to launch different iated wealth solut ions such as our exclusive Signature Select and Signature CIO funds. • Dig it ised and enhanced wealth client journeys with new self-service capabil it ies, streamlined processes, and more comprehensive portfolio advisory capabil it ies for both clients and frontline teams. • Developed our relationsh ip teams to be better wealth adv isers, with about 1,100 frontline relationsh ip managers, team leaders and special ists tra ined in the Standard Chartered-INSEAD Wealth Academy programmes since launch. • Up-tiered 295,000 ind iv idual clients through our wealth continuum across and with in personal and afﬂuent segments, by ta ilor ing proposit ions and serv ice models to the needs of our clients. • Recognised for excellence in private banking, dig ital wealth and other capabil it ies, with over 30 industry awards received in 2024. Performance highl ights • Underlying proﬁt before tax of $2,463 mill ion decreased by 1 per cent at constant currency (ccy) primar ily dr iven by increased operating expenses, higher credit and other impa irment charge part ially offset by higher income. • Underlying operating income of $7,816 mill ion was up 11 per cent at ccy, driven primar ily by Wealth Solut ions, up 29 per cent. This growth was broad-based across markets and products, driven by continued momentum in Afﬂuent new-to-bank onboarding and net new money. CCPL & Other Unsecured Lending income increased by 3 per cent supported by higher volumes from Partnership-led growth. Deposits income rose by 4 per cent driven by higher deposit volumes. Mortgage & Other Secured Lending income was up by 3 per cent beneﬁtt ing from higher upfront fees due to new sales momentum in Korea and Hong Kong, along with improv ing marg ins due to lower HIBOR. • Underlying operating expenses increased by 9 per cent in ccy, primar ily driven by inﬂat ion and investment in business growth in it iat ives includ ing the strateg ic hir ing of Afﬂuent relat ionsh ip managers. • Credit impa irment charge increased $290 mill ion to $644 m ill ion mainly from the higher interest rate environment impact ing repayments on credit cards and personal loans, the growth and maturity of the dig ital partnersh ip portfolios in China and Indonesia as well as $21 mill ion overlay relat ing to Korea eCommerce platforms. Other impa irment charge pr imar ily related to the wr ite-off of software assets. Wealth & Retail Banking Afﬂuent Net New Money (NNM)¹ International afﬂuent clients in wealth hubs 1 Net New Money is shown at YTD constant currency FX rates Aim: Achieve NNM 1 from new and exist ing afﬂuent cl ients, via innovat ion, and advisory-led and dig ital-ﬁrst Wealth propos it ions Analysis: Afﬂuent NNM increased by 61 per cent year-on-year in 2024, supported by strong new-to-bank client acquis it ion momentum, cross- border referrals and dig ital-dr iven client engagement Aim: To solid ify our pos it ion as a lead ing internat ional wealth manager by leveraging our client continuum, global network and expertise in wealth solutions Analysis: International afﬂuent clients increased 18 per cent year-on-year in 2024, deliver ing ~50 per cent of the three-year growth target set in 2023 $ 43.6 bn 2024 2023 2022 $ 27.1 bn $ 19.1 bn 325 k 2024 2023 2022 274 k 202 k Risk-weighted assets (RWA) $50.5 bn $1bn Proﬁt before taxation $2,463 m 1% underlying basis $2,193 m 10% reported basis Return on tangible equity (RoTE) 24.4 % 90bps underlying basis 21.7 % 301bps reported basis 23 Standard Chartered – Annual Report 2024 Strategic report Segment overview Formed in 2022, the Ventures client segment is a consolidat ion of SC Ventures and its related entit ies as well as the Group’s two majority-owned d ig ital banks Mox in Hong Kong and Trust in Singapore. • SC Ventures is the platform and catalyst for the Group to promote innovat ion, invest in disrupt ive ﬁnancial technology and explore alternative business models. It represents a diverse portfolio of almost 30 ventures and more than 30 investments. • Mox, a cloud-native, mobile only dig ital bank, was launched in Hong Kong as a joint venture w ith HKT, PCCW and Trip.com in September 2020. • Trust Bank is Singapore’s ﬁrst dig itally nat ive bank, launched in partnership with FairPr ice Group in September 2022. It has become one of the world’s fastest-growing dig ital banks, rap idly expanding to 974,000 customers in Singapore by the end of 2024 and build ing a wide range of innovat ive products and serv ices. Strategic prior it ies • SC Ventures’ focus is on build ing and scal ing new business models – across the three themes of Dig ital Bank ing & Lifestyle, Trade & Supply Chains and Dig ital Assets, enabled by art if ic ial intell igence, Web3/Blockchain, ESG and Quantum. We do this by connecting ecosystems, partners and clients to create value and new sources of revenues, provid ing opt ional ity for the Bank. We advance our ﬁntech agenda by ident ify ing, partnering and making minor ity investments in companies that provide technology capabil it ies, which can be integrated into the Bank and Ventures. Our focus is on innovat ive, fast growing, technology-focused companies that can accelerate transformation in the ﬁnanc ial serv ices sector. • Mox aims to become the leading dig ital bank globally. Its v is ion is to set the global benchmark for dig ital bank ing, focusing on cards, dig ital lend ing, deposits and wealth management. Mox plans to enhance its offering with insurance services and a broader range of dig ital ﬁnancial solut ions to cater to customer needs in a competit ive market. • Trust Bank aims to establish itself as one of the main retail banks in Singapore, creating new standards of customer experience. Key near-term prior it ies are to continue to deepen engagement with exist ing customers and to launch a wealth management propos it ion. Progress • In 2024, SC Ventures mainta ined pos it ive momentum, further enhancing its business performance. It launched four new ventures, raised funds amid a challenging environment, and expanded its geographical reach. As a result, the SC Ventures customer base grew by 13 per cent year-on-year to reach 660,000. SC Ventures’ presence in the Middle East expanded its network of partners and stakeholders in the region, while our Singapore-based dig ital infrastructure platform, Olea Global, secured a $100 mill ion warehouse ﬁnancing fac il ity from HSBC and Manul ife. SC Ventures’ portfolio of compliant and bank-grade platforms continues to prove our commitment to build ing infrastructure that will enable inst itut ional adoption of dig ital assets. In 2024, Zod ia Custody’s client base sign iﬁcantly expanded, and the d ig ital asset custodian is now backed by four major ﬁnanc ial inst itut ions: Standard Chartered, Northern Trust, SBI Holdings, and NAB. Libeara is powering the SGD Delta Fund (managed by Fundbridge Capital), which received Moody’s ﬁrst ever rating of a tokenised bond. • In 2024, Mox had around 650,000 customers, penetrating over 10 per cent of Hong Kong’s total bankable population. Mox continued to achieve strong performance, supported by an engaged customer base with an average 3.1x products and average log in of 15 times per active customer every month. Mox delivered 15 per cent year-on-year growth in revenue and 57 per cent year-on-year growth in deposits. Mox Card is a runaway success, with more than 100 mill ion transact ions to date. In 2024, Mox was the ﬁrst dig ital bank in Hong Kong to offer Asia Miles as part of its customer value proposit ion and has d istr ibuted a total of 500 m ill ion As ia Miles to date. By the ﬁrst half of 2024, Mox’s market share had reached 27 per cent (was ranked #1) and 26 per cent (was ranked #2) in lending and deposits respectively, among all Hong Kong dig ital banks. Mox was recognised for its excellence by various global named agencies, such as the Best Dig ital Bank in Hong Kong by The Asian Banker, Best Dig ital Bank for CX in Hong Kong and in Asia Pacif ic by The Dig ital Banker D ig ital CX Awards, V irtual Bank of the Year – Hong Kong by Asian Banking & Finance. Besides, Mox has established a strong connection with Hong Kong customers since its launch – the bank’s app is currently the highest-rated dig ital banking app in Hong Kong, achiev ing a score of 4.8 out of 5 in the Apple App Store • Trust Bank continued its rapid growth during 2024, with customer numbers reaching 974,000, equivalent to an 18 per cent share of the adult population in Singapore. Customer referrals remain the main source of this growth, keeping customer acquis it ion costs low. Alongside this customer growth, Trust Bank sign iﬁcantly expanded its customer proposit ion dur ing the year, launching several innovat ive products includ ing spl it purchase and balance transfer loans, a cashback credit card and a proposit ion for mass afﬂuent customers called Trust+. Customer engagement levels remain high with credit card customers making an average of 21 transactions each month. The resulting ﬁnanc ial progress has been strong, w ith deposit balances doubling to $2.8 bill ion and customer lend ing balances increas ing 149 per cent to $0.6 b ill ion. 2024 revenue increased 160 per cent compared with 2023 while costs rose only 5 per cent. Loan impa irments rema ined well controlled. During the year, Trust Bank received extensive industry awards and recognit ion, includ ing the best d ig ital bank in Singapore by The Asian Banker and was named the best mobile banking app globally by The Dig ital Banker. It rema ins a top-rated bank in Singapore on the Apple App Store. Build ing on the success of Trust+, Trust Bank is build ing its ﬁrst investment solutions product called TrustInvest, which it plans to launch in the ﬁrst quarter of 2025. Performance highl ights • Underlying loss before tax decreased by $18 mill ion to $390 m ill ion reﬂecting the Group’s continued commitment to invest ing in transformational dig ital in it iat ives. Income rose by 16 per cent at ccy to $183 mill ion, dr iven primar ily by a 60 per cent growth in the Dig ital Banks. Th is growth was fuelled by strong growth in customer numbers and volumes in both dig ital banks – Mox and Trust. • Operating expenses increased by 8 per cent due to continued investment in new and exist ing ventures. • Credit impa irment decreased from $85 m ill ion to $74 m ill ion, mainly due to delinquency rates improv ing in Mox. • Risk-weighted assets of $2.4 bill ion have increased $0.5 bill ion ma inly due to continued investment in new and exist ing ventures and minor ity interests. Ventures Customers Loss before taxation $390 m 4% underlying basis External funds raised $60 m 7% Risk-weighted assets (RWA) $2.4 bn $0.5bn Customers 2.3 m 0.5m 2.3 m 2024 2023 2022 1.8 m 1.3 m 24 Standard Chartered – Annual Report 2024 Strategic report Group Chief Financ ial Ofﬁcer’s rev iew Summary of ﬁnancial performance All commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a constant currency basis, unless otherwise stated. The Group delivered a strong performance in 2024, recording a return on tangible equity (RoTE) of 11.7 per cent, up 160 basis points year-on-year. A record performance in Wealth Solutions, and strong double-dig it growth in Global Markets and Global Banking, drove operating income growth of 14 per cent to $19.7 bill ion. Operat ing income was up 12 per cent excluding two notable items relating to gains on revaluation of FX posit ions in Egypt and hyperinﬂat ionary accounting adjustments in Ghana, as well as adjust ing for the reclassif icat ion of deposit insurance to expenses (the reclassif icat ion). Operating expenses grew 7 per cent or 6 per cent excluding the reclassif icat ion, resulting in posit ive income-to-cost jaws of 6 per cent excluding both notables and the reclassif icat ion. The credit impa irment charge of $557 mill ion was equ ivalent to an annualised loan-loss rate of 19 basis points while the other impa irment charge of $588 mill ion mostly related to the wr ite-off of software assets with no impact on capital ratios. This resulted in an underlying proﬁt before tax of $6.8 bill ion, up 21 per cent. The Group remains well capital ised and h ighly liqu id w ith a strong and diverse deposit base. The liqu id ity coverage ratio of 138 per cent reﬂects disc ipl ined asset and liab il ity management. The Common Equity Tier 1 (CET1) ratio of 14.2 per cent is above the Group’s target range of 13 per cent to 14 per cent, enabling the Board to announce a $1.5 bill ion share buyback programme to commence imm inently. • Operating income of $19.7 bill ion increased by 14 per cent or 12 per cent excluding the beneﬁt of two notable items and the reclassif icat ion. The double-dig it growth was dr iven by record performance in Wealth Solutions and strong double-dig it growth in Global Markets and Global Banking. • Net interest income (NII) increased 10 per cent, beneﬁtt ing from the roll-off of short-term hedges of $455 mill ion, and improved asset mix from a reduction in treasury assets to fund the trading book. This was partly offset by lower average interest earning asset volumes and the impact of elevated pass-through rates on deposit margins. Excluding the reclassif icat ion, NII was up 8 per cent. • Non NII increased 20 per cent. This was driven by a record performance in Wealth Solutions with broad-based growth across products, strong performance in Global Markets with double-dig it growth in both ﬂow and episod ic income and strong performance in Global Banking from higher orig inat ion volumes. Excluding two notable items of $295 mill ion, non NII increased 16 per cent. • Operating expenses excluding the UK bank levy increased 7 per cent, or 6 per cent excluding the reclassif icat ion. This was largely driven by inﬂat ion, strateg ic investments and continued investments into business growth in it iat ives, includ ing strateg ic hir ing of Relat ionsh ip Managers in Wealth & Retail Banking (WRB) and coverage bankers in Corporate & Investment Banking (CIB), partly offset by efﬁciency saves. The Group generated 7 per cent pos it ive income-to-cost jaws and the cost-to-income ratio improved by 4 percentage points to 59 per cent. • Credit impa irment of $557 mill ion in 2024 was up 5 per cent year-on-year. WRB impa irment of $644 m ill ion was up $290 mill ion, ma inly from the higher interest rate environment impact ing repayments on cred it cards and personal loans, and the growth and maturation of the dig ital partnersh ip portfolios in China and Indonesia. This was partly offset by a $106 mill ion net recovery in CIB. • Other impa irment of $588 mill ion of wh ich $561 mill ion relates to write-off of software assets, with no impact on capital ratios. Group Chief Financ ial Ofﬁcer’s rev iew “Strong growth leveraging our unique footprint” Diego De Giorg i Group Chief Financ ial Ofﬁcer 25 Standard Chartered – Annual Report 2024 Strategic report • Proﬁt from associates and jo int ventures was down 47 per cent to $50 mill ion ma inly reﬂecting lower proﬁts at China Bohai Bank. • Restructuring, other items and Debit Valuation Adjustment (DVA) totalled $797 mill ion. Restructur ing of $441 mill ion reﬂects the impact of actions to transform the organisat ion to structurally improve productiv ity, of which $156 mill ion relates to the F it for Growth programme, partly offset by gains on the remain ing Pr inc ipal F inance portfolio. Other items of $332 mill ion includes losses related to the sale of Zimbabwe of $172 mill ion, Angola of $26 mill ion and S ierra Leone of $19 mill ion all pr imar ily from the recycling of FX translation losses from reserves into the income statement, with no impact on tangible equity or capital. There was also a $100 mill ion charge booked for partic ipat ion in a compensation scheme recommended by the Korean Financ ial Superv isory Service. Movements in the DVA were a negative $24 mill ion. • Taxation was $1,972 mill ion on a reported bas is, with an underlying effective tax rate of 30.6 per cent up from 29.1 per cent in the prior year reﬂecting deferred tax not recognised for UK losses, US tax adjustments, lower tax-exempt income and a change in the geographic mix of proﬁts. • Underlying RoTE increased by 160 basis points to 11.7 per cent mainly reﬂecting an increase in proﬁts. • Underlying basic earnings per share (EPS) increased 39.2 cents or 30 per cent to 168.1 cents and reported EPS increased 32.7 cents or 30 per cent to 141.3 cents. • A ﬁnal ordinary div idend per share of 28 cents has been proposed taking the full-year div idend to 37 cents per share, a 37 per cent increase year-on-year. The Group completed a $1 bill ion share buyback programme dur ing the ﬁrst half of the year and the $1.5 bill ion share buyback programme announced on 30 July 2024 was completed on 30 January 2025. The increased div idend, along w ith a new share buyback programme of $1.5 bill ion to be commenced imm inently, takes the total shareholder d istr ibut ions announced since the full year 2023 results to $4.9 bill ion. Guidance The 2025 and 2026 guidance is as follows: • Income: – Operating income to increase 5-7 per cent CAGR in 2023-2026 at constant currency (ccy) excluding the reclassif icat ion, currently tracking towards the upper end of the range – 2025 growth expected to be below the 5-7 per cent range at ccy excluding notable items • Expenses: – Operating expenses to be below $12.3 bill ion in 2026 at ccy, now includ ing the UK bank levy and the ongo ing impact of the reclassif icat ion; there has been no change to the 2026 guidance on a like-for-like basis – Expense saves of around $1.5 bill ion and cost to achieve of no more than $1.5 bill ion from the F it for Growth programme – Posit ive income-to-cost jaws in each year at ccy, excluding notable items • Assets and RWA: – Low single-dig it percentage growth in underlying loans and advances to customers and RWA – Basel 3.1 day-1 impact expected to be close to neutral • Continue to expect the loan loss rate to normalise towards the histor ical through-the-cycle 30 to 35 bas is points range. • Capital: – Continue to operate dynamically with in the full 13-14 per cent CET1 ratio target range – Plan to return at least $8 bill ion to shareholders cumulative 2024 to 2026 – Continue to increase full-year div idend per share over time • RoTE approaching 13 per cent in 2026 and to progress thereafter. Diego De Giorg i Group Chief Financ ial Ofﬁcer 21 February 2025 26 Standard Chartered – Annual Report 2024 Strategic report Group Chief Financ ial Ofﬁcer’s rev iew Summary of ﬁnancial performance 2024 $mill ion 2023 $mill ion Change % Constant currency change¹ % Underlying net interest income 10,446 9,557 9 10 Underlying non NII 9,250 7,821 18 20 Underlying operating income 19,696 17,378 13 14 Other operating expenses (11,700) (11,025) (6) (7) UK bank levy (90) (111) 19 19 Underlying operating expenses (11,790) (11,136) (6) (7) Underlying operating proﬁt before impa irment and taxat ion 7,906 6,242 27 28 Credit impa irment (557) (528) (5) (5) Other impa irment (588) (130) nm nm Proﬁt from associates and jo int ventures 50 94 (47) (47) Underlying proﬁt before taxation 6,811 5,678 20 21 Restructuring⁴ (441) (14) nm nm Goodwill and Other impa irment⁵ – (850) 100 100 DVA (24) 17 nm nm Other items³ (332) 262 nm nm Reported proﬁt before taxation 6,014 5,093 18 19 Taxation (1,972) (1,631) (21) (24) Proﬁt for the year 4,042 3,462 17 17 Net interest margin (%) 2 1.94 1.67 27 Underlying return on tangible equity (%) 2 11.7 10.1 160 Underlying earnings per share (cents) 168.1 128.9 30 1 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Change is the basis points (bps) difference between the two periods rather than the percentage change 3 Other items 2024 includes $100 mill ion charge relat ing to Korea equity linked securit ies (ELS) portfol io, $172 mill ion pr imar ily relat ing to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe, $26 mill ion loss on sale of Angola, $19 m ill ion loss on S ierra Leone Partial exit and $15 mill ion loss on the Aviat ion bus iness disposal 4 Restructuring 2024 includes $156 mill ion of F it For Growth costs that are primar ily severance costs, costs of staff work ing on FFG in it iat ives and legal and professional fees 5 Goodwill and other impa irment include $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) Reported ﬁnancial performance summary 2024 $mill ion 2023 $mill ion Change % Constant currency change 6 % Net interest income 6,366 7,769 (18) (17) Non NII 13,177 10,250 29 30 Reported operating income 19,543 18,019 8 10 Reported operating expenses (12,502) (11,551) (8) (9) Reported operating proﬁt before impa irment and taxat ion 7,041 6,468 9 10 Credit impa irment (547) (508) (8) (7) Goodwill and Other impa irment (588) (1,008) 42 42 Proﬁt from associates and jo int ventures 108 141 (23) (24) Reported proﬁt before taxation 6,014 5,093 18 19 Taxation (1,972) (1,631) (21) (24) Proﬁt for the year 4,042 3,462 17 17 Reported return on tangible equity (%) 7 9.7 8.4 130 Reported earnings per share (cents) 141.3 108.6 30 6 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods 7 Change is the basis points (bps) difference between the two periods rather than the percentage change 27 Standard Chartered – Annual Report 2024 Strategic report The Group’s strong performance in 2024 is underpinned by our commitment to effective risk management amid complex geopolit ical and macroeconom ic challenges across many of our markets. The ﬁrst half of the year saw sustained inﬂat ion levels, high interest rates and uncertaint ies around the pace of rate cuts, abated by the Fed’s gradual rate reductions in the second half of 2024, with many central banks following suit. Polit ical developments rema ined a key focus, with many national elections taking place globally and civ il unrest in several key markets requir ing close mon itor ing. We proact ively considered the potential downside impact in our credit impa irment outlook. In the M iddle East, heightened tensions and the risk of a broader regional conﬂict prompted us to strengthen cris is management measures and assess sp illover risks. The Group continues to have lim ited d irect exposure to Ukraine and to the countries in the Middle East which are currently most impacted by conﬂicts. In China, the improv ing outlook in 2025 following rounds of government stimulus measures in 2024 has helped stabil ise Ch ina’s real estate sector. Nonetheless, we remain watchful of China’s policy response to boost trade and domestic consumption, as well as the persistent challenges in the property sector in terms of asset devaluation and destocking process by the major developers. We remained vig ilant in managing persistent and evolving geopolit ical and macroeconom ic risks while keeping our focus to the Group’s strategy. This included monitor ing volat il ity in commodity markets and assessing both direct and second order impacts across our segments and vulnerable sectors. Further details on the Topical and Emerging Risks which we are monitor ing are deta iled on page 29. Corporate & Investment Banking (CIB) Our CIB credit portfolio remained resil ient w ith overall good asset quality as evidenced by our largely investment grade corporate portfolio (31 December 2024: 74 per cent, 31 December 2023: 73 per cent). In considerat ion of the macroeconomic challenges, portfolio and thematic reviews were conducted throughout 2024. These included: (i) stresses on extreme movements in commodity prices; (i i) a global commercial real estate (CRE) stress test, includ ing a rev iew of ind irect exposures where the Group may be exposed to; and (i i i) thematic reviews of select geographies/portfolios. Our proactive risk management helped us to ident ify vulnerable industry sectors and clients which could potentially come under stress. The outcomes from these reviews include closer monitor ing of impacted industr ies and cl ients, placement of accounts on Early Alert, credit grade adjustment or taking proactive lim it or exposure reduct ion actions, as appropriate. Wealth & Retail Banking (WRB) The WRB credit portfolio continued to demonstrate resil ience amid the economic uncertaint ies and geopol it ical challenges in 2024. Slowing economic growth in China and other challenges persisted in our larger markets (Hong Kong, Korea and Singapore), as prolonged higher interest rates mainta ined pressure on our retail customers’ debt servic ing capac ity and translated into higher delinquenc ies and impa irments. Across our consumer credit portfolios, we monitored customer affordabil ity, proact ively adjusted our orig inat ion criter ia and reﬁned our portfolio management and collections strategies. The WRB strategy was refreshed to pivot our product offerings across our markets to focus on afﬂuent segments. While credit impa irment increased in 2024, we expect improvement in credit performance in 2025 as the impact of credit actions taken and pivot to afﬂuent segments material ise across the portfol ios. We will continue to monitor changes in the macroeconomic environment, includ ing disrupt ions caused by increas ing market and rates volat il ity, regional conﬂicts and ris ing geopol it ical and trade tens ions, through scenario analyses and portfolio reviews. Treasury Risk Our liqu id ity and capital risks are managed to ensure a strong and resil ient balance sheet that supports susta inable growth. Funding markets and liqu id ity condit ions have generally been stable in 2024 compared to 2023. We continue to have a clear focus on Treasury risks includ ing cap ital, liqu id ity and Interest Group Chief Risk Ofﬁcer’s review “Managing our risks and focusing on business resil ience and strategy, amidst persistent and evolving macroeconomic and geopolit ical r isks.” Sadia Ricke Group Chief Risk Ofﬁcer 28 Standard Chartered – Annual Report 2024 Strategic report Group Chief Risk Ofﬁcer’s review Rate Risk in the Banking Book and enhance the Treasury Risk framework as required. We mainta ined a res il ient l iqu id ity posit ion across the Group and major legal ent it ies throughout 2024 with Group liqu id ity coverage ratio (LCR) at 138 per cent (31 December 2023: 145.4 per cent), a surplus to both Risk Appetite and regulatory requirements. Common Equity Tier 1 (CET1) ratio was 14.2 per cent as of December 2024 (31 December 2023: 14.1 per cent) while Leverage ratio was 4.8 per cent (31 December 2023: 4.7 per cent). Further details on Risk Management for our Princ ipal R isk Types in page 196 Further details on Managing Climate Risk can be found in page 256 An update on our risk management approach Our Enterprise Risk Management Framework (ERMF) sets out the princ iples and m in imum requ irements for risk management and governance across the Group. The ERMF is complemented by frameworks, polic ies and standards which are mainly aligned to the Princ ipal R isk Types (PRTs) and is embedded across the Group, includ ing its branches and subsid iar ies 1 . The ERMF enables the Group to manage enterprise-wide risks, with the object ive of max im is ing risk-adjusted returns while remain ing w ith in our R isk Appetite (RA). 1 The Group’s ERMF and System of Internal Control applies only to wholly controlled subsid iar ies of the Group, and not to Associates, Joint Ventures or Structured Entit ies of the Group. Princ ipal R isk Types and Risk Appetite PRTs are those risks that are inherent in our strategy and business model and have been formally deﬁned in the Group’s ERMF. These risks are managed through dist inct R isk Type Frameworks which are approved by the GCRO. The table below details the Group’s current PRTs and their corresponding RA statements. Princ ipal R isk Type Deﬁnit ion Risk Appetite Statement Credit Risk Potential for loss due to failure of a counterparty to meet its agreed obligat ions to pay the Group. The Group manages its credit exposures following the princ iple of d ivers iﬁcation across products, geographies, client segments and industry sectors. Traded Risk Potential for loss resulting from activ it ies undertaken by the Group in ﬁnanc ial markets. The Group should control its ﬁnanc ial markets activ it ies to ensure that market and counterparty credit risk losses do not cause material damage to the Group’s franchise. Treasury Risk Potential for insuff ic ient capital, liqu id ity, or funding to support our operations, the risk of reductions in earnings or value from movements in interest rates impact ing bank ing book items and the potential for losses from a shortfall in the Group’s pension plans. The Group should mainta in sufﬁcient cap ital, liqu id ity and funding to support its operations, and an interest rate proﬁle ensuring that the reductions in earnings or value from movements in interest rates impact ing banking book items does not cause material damage to the Group’s franchise. In addit ion, the Group should ensure its pension plans are adequately funded. Operational and Technology Risk Potential for loss resulting from inadequate or failed internal processes, technology events, human error, or from the impact of external events (includ ing legal risks). The Group aims to control operational and technology risks to ensure that operational losses (ﬁnancial or reputat ional), includ ing any related to the conduct of business matters, do not cause material damage to the Group’s franchise. Information and Cyber Security (ICS) Risk Risk to the Group’s assets, operations, and ind iv iduals due to the potential for unauthorised access, use, disclosure, disrupt ion, mod if icat ion, or destruction of informat ion assets and/or informat ion systems. The Group aims to mit igate and control ICS r isks to ensure that inc idents do not cause the Bank material harm, business disrupt ion, ﬁnancial loss or reputational damage – recognis ing that wh ile inc idents are unwanted, they cannot be ent irely avoided. Financ ial Cr ime Risk 2 Potential for legal or regulatory penalties, material ﬁnancial loss or reputat ional damage resulting from the failure to comply with applicable laws and regulations relating to internat ional sanct ions, anti-money laundering and anti-bribery and corruption, and fraud. The Group has no appetite for breaches of laws and regulations related to Financ ial Cr ime, recognis ing that while inc idents are unwanted, they cannot be entirely avoided. Compliance Risk Potential for penalties or loss to the Group or for an adverse impact to our clients, stakeholders or to the integr ity of the markets we operate in through a failure on our part to comply with laws, or regulations. The Group has no appetite for breaches of laws and regulations related to regulatory non-compliance; recognis ing that wh ile inc idents are unwanted, they cannot be entirely avoided. Environmental, Social and Governance and Reputational (ESGR) Risk Potential or actual adverse impact on the environment and/or society, the Group’s ﬁnanc ial performance, operations, or the Group’s name, brand or standing, aris ing from env ironmental, social or governance factors, or as a result of the Group’s actual or perceived actions or inact ions. The Group aims to measure and manage ﬁnanc ial and non-ﬁnancial r isks aris ing from cl imate change, reduce emiss ions in line with our net zero strategy and protect the Group from material reputational damage by upholding responsible conduct and striv ing to do no s ign iﬁcant env ironmental and social harm. Model Risk Potential loss that may occur because of decis ions or the risk of misest imat ion that could be princ ipally based on the output of models, due to errors in the development, implementat ion, or use of such models. The Group has no appetite for material adverse impl icat ions aris ing from m isuse of models or errors in the development or implementat ion of models; while accepting some model uncertainty. 2 Fraud forms part of the Financ ial Cr ime RA Statement but, in line with market practice, does not apply a zero-tolerance approach As of November 2024, the Climate Risk RA statement was integrated into the ESGR PRT. Further details on our Risk Management Approach can be found on pages 196 to 206 . 29 Standard Chartered – Annual Report 2024 Strategic report As part of our ongoing risk ident iﬁcation process, we have updated the Group’s TERs from those disclosed in the 2024 Half-Year Report. These remain relevant with nuances in their evolution noted where pertinent. Below is a summary of the TERs, and the actions we are taking to mit igate them based on our current knowledge and assumptions. This reﬂects the latest internal assessment by senior management. The TER list is not exhaustive and there may be addit ional risks which could have an adverse effect on the Group. There are some horizon risks that, although not highly likely at present, could become threats in the future and thus we are monitor ing them. These include future pandemics and the world’s preparedness for them, and potential cross-border conﬂicts. Our mit igat ion approach for these risks may not elim inate them but demonstrates the Group’s awareness and attempt to reduce or manage their impact. As certain risks develop and material ise over t ime, we will take appropriate steps to mit igate them based on the ir material ity to the Group. Macroeconomic and geopolit ical cons iderat ions There is a complex interconnectedness between risks due to the direct inﬂuence of geopolit ics on macroeconom ics, as well as the global or concentrated nature of key supply chains for energy, food, semi-conductors and crit ical m inerals. The Group is exposed to these risks directly through investments, infrastructure and employees, and also ind irectly through its clients. While the primary impact is ﬁnanc ial, there may be other ram if icat ions such as reputational, compliance or operational considerat ions. Expanding array of global tensions and transit ion of the internat ional order The internat ional order is undergoing a transit ion, w ith a shift towards a multi-aligned global system resulting in more transactional and less predictable interact ions between global powers. This can give rise to new and more ﬂuid polit ical and econom ic alliances, accelerated by the increas ing number of conﬂ icts, specif ically those in Ukraine and the Middle East. While the Group has lim ited d irect exposure to the countries which are currently involved in conﬂicts, it may be impacted by second order effects on its clients and markets such as agricultural commodit ies, o il and gas. The threat of escalation to the wider Middle East region remains present, despite a Gaza ceaseﬁre agreement being reached in January 2025, and could affect markets in the Group’s footprint. Regional volatil ity has increased following the collapse of the Assad regime in Syria. The posit ion ing of ‘middle powers’ is complex and evolving, and there is a rise in ‘min i-lateral’ group ings of countries that are ideolog ically or geograph ically aligned. The negotiat ing power of exporters of key resources has grown and can shape global markets. Expanding power blocs such as BRICS may coalesce and become more effective at exercis ing the ir increased collective inﬂuence, such as establish ing parallel ﬁnancial infrastructures (payment system, development bank, credit rating agency) to support their trade. Other coalit ions between more act ively anti-Western regimes such as Russia, North Korea, Syria and Iran could prove more volatile in their attempts to shift the axis of power. The 2024 global election cycle culminated with the US elections in November. Donald Trump’s victory signals forthcoming changes to relationsh ips w ith tradit ional all ies such as Europe, given the focus on NATO spending and trade surpluses. Tariffs may also be implemented in response to non-economic issues such as imm igrat ion. There have also been notable shifts in government composit ion in France, UK, South Africa, Bangladesh and Sri Lanka, as well as polit ical cr ises in Canada, South Korea and Germany. Amid changes in governments, there is a growing worldwide trend for short-term populist measures that are outweigh ing longer-term pol it ical necess it ies, such as addressing climate change or demographic transit ions. Relations between the West, led by the US and the EU, and China are in a state of ﬂux. Tariffs, embargos, sanctions, and restrict ions on technology exports and investments are expected to increase in pursuit of both economic and security goals. The malic ious use of AI enabled d is informat ion could continue to cause disrupt ion and underm ine trust in the polit ical process. This, combined with already fractured societ ies and persistent inequal ity, may lead to he ightened societal tensions. Terrorism and cyber warfare are also ongoing threats, with unpredictab il ity exacerbated by the wider range of ideolog ies at play. Cyber attacks can d isrupt infrastructure and inst itut ions in rival countries. A more complex and less integrated global polit ical and economic landscape could challenge cross-border business models but also provide new business opportunit ies. Uncertain interest rate trajectory and credit downturn Although rate cuts have been enacted by all major central banks, with further cuts signalled, the scale and pace of cuts are still highly uncertain. Structurally higher deﬁc its, cont inued supply disrupt ions, m il itary spend ing and other inﬂat ionary pressures, such as addit ional tar iffs, may keep rates higher. A ‘higher-for-longer’ rate environment would continue to stretch companies and sovereigns alike, with the global corporate default rate remain ing well above the post- ﬁnancial cr is is average in 2024. Stress has continued in the global commercial real estate sector and may extend to ﬁxed-rate mortgages. In contrast, aggressive cuts could renew inﬂat ion. Topical and Emerging Risks (TERs) Topical Risks refer to themes that may have emerged but are still evolving rapidly and unpredictably. Emerging Risks refer to unpredictable and uncontrollable outcomes from certain events which may have the potential to adversely impact our business. 30 Standard Chartered – Annual Report 2024 Strategic report Group Chief Risk Ofﬁcer’s review Despite this, markets have remained surpris ingly res il ient to adverse geopolit ical cond it ions and inﬂat ion forecasts. The conﬂicts in the Middle East and Russia have not had a material impact on commodity prices and the wider global economy. However, oil price volatil ity could re-emerge should the US strengthen sanctions enforcement. While credit spreads remain below those observed at the outbreak of the Russia–Ukraine conﬂict, volatil ity and abrupt changes in sentiment remain a risk. Economic challenges in China China’s growth rate looks unlikely to return to pre-pandemic levels. Although prelim inary ﬁgures reported 2024 growth at 5 per cent, the IMF forecast is for a drop to 4.5 per cent in 2025. As a result of the subdued growth rate, China announced a co-ordinated package of stimulus measures in the second half of 2024 to boost the economy with a focus on the stressed real estate and local government sectors. Competit ion w ith the US and the EU is intense, particularly around modern technologies. Areas such as electric vehicles and AI are key battlegrounds. China’s industr ial overcapac ity leads to increased search for export markets; electric vehicles and steel are prime examples. This is stoking trade-related frict ions and provok ing economic counter measures such as tariffs announced by the US and the EU, with the new Trump admin istrat ion’s plans to impose further trade barriers on China also looming. To combat this China has sought agreements with other nations, such as the Associat ion of Southeast As ia Nations (ASEAN)–China Free Trade Agreement. As well as strengthening economic ties, they allow Chinese companies to establish manufacturing overseas, potentially circumvent ing the worst of the restr ict ions. China is also urging partners to increase the use of renminb i (RMB) in trade. In the ﬁrst half of 2024, RMB’s share of global payments was 4.7 per cent, over double that of a year earlier, making it the fourth most used currency for global payments by value. Given China’s importance to global trade, a prolonged slowdown would have wider impl icat ions across the supply chain, especially for its trading partners, as well as for countries which rely on it for investment, such as those in Africa. However, opportunit ies ar ise from the divers iﬁcation of intra-Asia trade and other global trade routes, and growth acceleration in South Asia, especially India. Sovereign risk While a number of markets remain in debt distress, emerging markets have proven resil ient in 2024. Despite continued higher rates, the last notable request for debt relief was made in early 2023. Progress has also been observed with Zambia and Sri Lanka’s debt exchanges. However, bond issuance remains high, with global government debt set to exceed $100 trill ion in 2024, and potentially reach 100 per cent of global GDP by 2030. Markets are likely to ﬁnd it diff icult to reduce debt levels due to the preva il ing pol it ical backdrop, weak GDP growth, demographic pressures and pressure to increase national security and defence. While markets have remained opened for all categories of sovereign issuers, reﬁnanc ing costs have been r is ing, and interest payments are an increas ing burden on both emerg ing and developed markets. Emerging markets in particular will continue to be affected by US dollar strengthening, which has intens iﬁed s ince the US election. This would impact through multiple avenues, namely higher import prices, lower ﬂexib il ity in monetary policy and making reﬁnanc ing ex ist ing debt or accessing hard currency liqu id ity more challenging. Some countries also face a heightened risk of fail ing to manage societal demands and increas ing pol it ical vulnerab il ity, as evidenced by France’s recent downgrade. Food and security challenges exacerbated by armed conﬂict and climate change also have the potential to drive social unrest. Debt moratoria and reﬁnanc ing in it iat ives for some emerg ing markets are complicated by a larger number of ﬁnanc iers, with much ﬁnanc ing done on a b ilateral basis outside of the Paris Club. While the Global Sovereign Debt Roundtable has made some progress on coordinat ing approaches between the Paris Club and other lenders, their interests do not always match. This can lead to delays in negotiat ions on debt resolutions for developing nations. Supply chain issues and key material shortages While the in it ial disrupt ion caused by the Russ ia–Ukraine and Middle East conﬂicts have somewhat abated, they highl ighted the cont inued vulnerabil ity of global supply l ines. There is growing polit ical awareness around the need for key component and resource security at national level. Countries are enacting rules to ‘de-risk’ by reducing reliance on rivals or concentrated suppliers (for example, semi-conductors) and look to either re-industr ial ise or make use of near-shoring and friend-shoring production. Countries’ increased will ingness to impose trade barriers to inﬂuence trading behaviour may disrupt exporters, strain relations with trade partners and add to inﬂat ionary pressures. A recent example is the EU probe into unfair commercial practices in the provis ion of renewable energy equipment, particularly subsid ies related to offshore w ind and solar energy. The growing need for minerals and rare earth elements to power green energy technologies can be leveraged to achieve economic or polit ical a ims by restrict ing access. Th is can bolster the negotiat ing inﬂuence of the main reﬁners and producers, such as China, Indonesia and some African nations, while prompting some nations to slow down their green transit ion plans. Act ions have already been taken in Western nations to de-risk through in it iat ives such as the M inerals Security Partnership. How these risks are mit igated • We remain vig ilant in monitor ing r isk and assessing impacts from geopolit ical and macroeconom ic risks to portfolio concentrations. • We explored the impl icat ions of a second Trump admin istrat ion, evaluating policy direct ion under d ifferent scenarios, the potential outcomes and challenges associated with each. • We mainta in a d ivers iﬁed portfol io across products and geographies, with specif ic r isk appetite metrics to monitor concentrations. • We are performing targeted portfolio analyses to ident ify clients that may be impacted by a new wave of tariffs. • Mit igat ions in our Wealth & Retail Banking segment include build ing a res il ient revenue base and ma inta in ing close relations with clients for the awareness of early alerts. • Increased scrutiny is applied when onboarding clients in sensit ive industr ies and in ensuring compliance with sanctions. • We util ise Cred it Risk mit igat ion measures includ ing collateral and credit insurance. • We conduct portfolio reviews as well as macroeconomic, thematic and event-driven stress tests at Group, country and business level, with regular reviews of vulnerable sectors, and undertake mit igat ing actions. 31 Standard Chartered – Annual Report 2024 Strategic report • We have a dedicated country risk team that closely monitors sovereign risk. • We run a series of daily market risk stress scenarios to assess the impact of unlikely but plausible market shocks. • We run a suite of management scenarios with differ ing severit ies to assess the ir impact on key risk appetite metrics. • We regularly review our third-party arrangements to improve operational resil ience. ESG considerat ions ESG risk Higher frequencies of extreme weather events are observed each year and the cost of managing the climate impacts is increas ing, w ith the burden disproport ionately borne by developing markets, where we have a large footprint. Alongside climate, other environmental risks pose incremental challenges to food, health systems and energy security; for example, biod ivers ity loss, pollution, and depletion of water. Modern slavery and human rights concerns are increas ingly in focus with the scope expanding beyond direct operations to extended supply chains and vendors. ESG regulation continues to develop across the world, often with differ ing taxonom ies and disclosure requirements. This increased regulation is also generating stakeholder scrutiny on greenwashing risk, with ESG lit igat ion being brought against corporations and governments in multiple markets. However, a succession of polit ical, soc ial and economic disrupt ions in recent years have diverted attention and resources away from longer-term action on climate and sustainable development as competing spending demands are made of stretched budgets. This will be further exacerbated by the new Trump admin istrat ion, which has rolled back green energy polic ies, and w ithdrawn the US from the Paris Agreement. For companies and governments, the trade-off between pragmatism and environmentalism has crystallised with several delaying or rolling back targets. For example, there has been a sign iﬁcant reduct ion in the number of ESG-focused funds launched in 2024, and there has been a lack of progress at the recent COP meeting. Several US and Canadian banks have withdrawn from the Net-Zero Banking Alliance. A slower transit ion to low carbon bus iness models may impact progress towards the Group’s net zero targets and product roadmap. How these risks are mit igated • Climate Risk considerat ions are embedded across all relevant Princ ipal R isk Types. This includes client-level Climate Risk assessments, includ ing sett ing adequate mit igants or controls as part of dec is ion mak ing and portfolio management activ it ies. • We embed our values through our Posit ion Statements for sensit ive sectors and a l ist of prohib ited act iv it ies. We also mainta in ESG and Reputat ional Risk standards to ident ify, assess and manage these risks when provid ing ﬁnancial services to clients. • The management of greenwashing risks has been integrated into our ESG and Reputational Risk Framework, Reputational Risk policy, Sustainable Finance product greenwashing standard, and Corporate Affairs, Brand and Marketing standards for communicat ions and segment campaigns. • Detailed portfolio reviews and stress tests are conducted to test resil ience to cl imate-related physical and transit ion risks and enhance modelling capabil it ies to understand the ﬁnancial r isks and opportunit ies from cl imate change. • We assess our relevant corporate clients and suppliers against various internat ional human r ights princ iples, as well as through our social safeguards. Modern slavery statement: sc.com/modernslavery Human Rights Posit ion Statement: sc.com/humanrights New business structures, channels and competit ion Competit ion ar is ing from technolog ical developments and non-bank lending Tradit ional bank ing faces challenges in its external competit ive env ironment from a range of ﬁntechs and private credit players, which dis intermed iate and cause disrupt ion to tradit ional lenders as well as publ ic markets. There are also ‘dig ital enterpr ise’ business models, which integrate ﬁnanc ial services with emerging technologies like AI, big data analytics and cloud computing fostering ﬁnanc ial d is intermed iat ion. The rapid adoption of AI in particular raises a number of challenges. There has been a large increase of AI use in frauds and scams, and there are potential societal and economic impacts of the technology being used to replace jobs across most sectors. However, with AI tools and models being embedded into everyday life it is likely to become a foundational technology. Leveraging the beneﬁts of augmented AI while managing these risks will be a core part of the Group’s business model. While there are challenges, banks themselves also have an opportunity to defend or leverage their competit ive advantage by harnessing new technologies, partnerships or new asset classes. In the longer term, increased adoption of stable coins and dig ital currenc ies could sim ilarly create alternat ive deposit channels and bank dis intermed iat ion. The rapid adoption of new technologies, partnership models or dig ital assets by banks br ings a range of inherent risks, requir ing clear operat ing models and risk frameworks. It is essential to upskill our people to develop in-house expertise and capabil it ies to manage associated risks, includ ing model risks or managing external third parties which deliver these technologies. We must ensure that the people, process and technology agendas are viewed holist ically to ensure the most effective and efﬁc ient implementat ion of new infrastructure. Cyber security and data challenges The Group’s dig ital footpr int is expanding. This increases inherent cyber risk as more services and products are dig it ised, outsourced and made more accessible. Highly interconnected and extended enterprises drive efﬁc ienc ies but can expand the opportunit ies ava ilable for malic ious actors to ga in entry or access to corporate assets. This includes infrastructure such as cloud and third-party enabled services. The risk of cyber inc idents is amplif ied by h ighly organised and resourced threat actors includ ing organ ised crime and nation states, with malic ious act iv ity made eas ier through the commodit isat ion or ‘as a service’ access to malic ious tools and technologies. Emerging technology such as AI is enabling novel or augmented attack types, and cross-border tensions further drive the arms race to develop more capable and innovat ive cyber capab il it ies, both offensive and defensive. 32 Standard Chartered – Annual Report 2024 Strategic report Group Chief Risk Ofﬁcer’s review Geopolit ical dynam ics are leading to progressively fragmented and divergent regulatory frameworks through which the Group must navigate. There are growing data sovereignty requirements to localise data, systems and operations, with data increas ingly recogn ised as being at the centre of global trade. How these risks are mit igated • We monitor emerging technology trends, business models and opportunit ies relevant to the bank ing sector. • We invest in our capabil it ies to prepare for and protect against disrupt ion and new r isks. • We have established enhanced governance for novel areas, such as the Dig ital Asset R isk Committee and the Responsible AI Council. • We manage data risks through our Compliance Risk Type Framework and informat ion secur ity risks through our Information and Cyber Security (ICS) Risk Type Framework. We mainta in a ded icated Group Data Conduct Policy with globally applicable standards. These standards undergo regular review to ensure alignment with changing regulations and industry best practice. • We augment our data risk management capabil it ies and controls, includ ing through programmes to enhance data quality and compliance with Basel Committee of Banking Supervis ion 239 requ irements and to address evolving legal and regulatory requirements relating to privacy and personal data protection, cross-border data transfers and the use of AI, with progress tracked at executive level risk governance committees. • Risks embedded in key software programmes are continuously reassessed together with enhancements made in testing stages of new systems before they go live. • The Group has implemented a ‘defence-in-depth’ ICS control environment strategy to protect, detect and respond to known and emerging ICS threats. • New risks aris ing from partnersh ips, alliances, dig ital assets and generative technologies are ident iﬁed through the New Init iat ives Risk Assessment and Third-Party Risk Management Policy and Standards. • Work is already under way to gauge the potential beneﬁts and threats of nascent technologies such as quantum computing. Regulatory considerat ions Regulatory evolution and fragmentation The regulatory framework for banks is expanding, becoming more complex and remains subject to continual evolution. Another outcome of the new Trump admin istrat ion may be a relaxation of US regulation, and potentially a challenge to its adoption of Basel 3.1 rules. The UK has postponed its implementat ion of Basel 3.1 tw ice, with the current deadline being 2027. Aside from changes in prudential, ﬁnanc ial markets, cl imate and data regulations, we antic ipate a r ise in consultations and regulations relating to the use of AI, and particularly around its ethical applicat ion in decis ion-mak ing. Jurisd ict ional risk arises from internat ionally d iverg ing regulations, with differ ing pace and scale of regulatory adoption, conﬂict ing rules, extraterr itor ial and local isat ion requirements around data, staff, capital and revenues. Data sovereignty and ESG regulation are prime examples of jurisd ict ional r isk. This makes it challenging for multinat ional groups to manage cross-border activ it ies, as well as adding complexity and cost. Such fragmented regulatory changes can also create frict ions in the market as a whole. How these risks are mit igated • We actively monitor regulatory developments, includ ing those related to sustainable ﬁnance, ESG, dig ital assets and AI and respond to consultations either bilaterally or through well-established industry bodies. • We track evolving country-specif ic requ irements, and actively collaborate with regulators to support important in it iat ives. • We help shape regulation, particularly in new areas like AI and Central Bank Dig ital Currenc ies, through thought leadership, and actively engaging with policymakers and central banks. Demographic considerat ions Skills of the future Evolving client expectations and the rapid development of technologies such as AI are transforming the workplace, and further accelerating changes to how people deliver outcomes, connect and collaborate. The skills needed to grow businesses and sustain careers are being disrupted as a result, with a balance of both technical and human skills becoming increas ingly cr it ical. Workforce expectations also continue to evolve. ‘What’ work people do and ‘how’ they get to deliver it have become different iators in attracting future-focused talent. There is greater desire to do work aligned to ind iv idual purpose and to have increas ing expectat ions from employers to invest in skills and careers. These trends are even more dist inct among Millenn ials and Gen Z who make up an ever- increas ing proportion of the global talent pool, and as dig ital nat ives possess the attributes needed to pursue our strategy. To sustainably attract, grow and retain the relevant skills and talent, we must continue to invest in build ing future- focused skills as well as further strengthen our Employee Value Proposit ion (EVP) and brand prom ise. Demographic and migrat ion trends Divergent demographic trends across developed and emerging markets create contrasting challenges. Developed markets’ state budgets will be increas ingly stra ined by ageing and shrink ing populat ions, while polit ical stances reduce the abil ity to ﬁll sk ills gaps through imm igrat ion. Conversely, emerging markets are experienc ing fast-grow ing, younger workforces. While it is an opportunity to develop talent, population growth will put pressure on key resources such as food and water, as well as government budgets for education and health to capital ise on the ‘demograph ic div idend’. 33 Standard Chartered – Annual Report 2024 Strategic report Population displacement is ris ing am id increased conﬂict and natural disasters, a lack of key resources, climate change, and disturbances in public order. This may increase the fragil ity of societal structures in vulnerable centres. The topics of both forced and economic migrat ion are increas ingly inﬂuent ial in polit ical d iscourse and have been a major focus of the Trump admin istrat ion’s ﬁrst weeks in ofﬁce. Large scale movement, both internally displaced persons and cross border migrat ion, could cause social unrest, as well as propagate disease transmiss ion and accelerate the spread of future pandem ics. The threat of terrorist activ ity has also increased in the latter half of 2024. Addit ionally, net populat ion growth for the 21st century will be in less-developed countries. Antic ipat ing and proactively planning for these demographic shifts will be essential in mainta in ing an efﬁc ient global bus iness model in the coming decades. How these risks are mit igated • We are helping colleagues to upskill and reskill, both through classroom sessions and our online learning platform. We have an internal Talent Marketplace which enables colleagues to sign up for projects to access diverse experiences and career opportunit ies. • We place emphasis on skills and aspirat ion to ident ify the talents to accelerate, as well as deploy it in areas with the highest impact for our clients and the business. We are pilot ing a d ifferent iated learn ing proposit ion for these talents with the highest potential. • We emphasise frequent two-way feedback through performance and development conversations to embed a culture of continuous learning and development. • Our culture and EVP work is addressing the emerging expectations of our diverse talent base, particularly around being purpose-led. • We provide support and resources to all colleagues to help balance productiv ity, collaborat ion and wellbeing, with more than 60 per cent of our workforce having signed up to work ﬂexibly. Sadia Ricke Group Chief Risk Ofﬁcer 21 February 2025 We’re build ing next-gen entrepreneurial skills In August, we held our ﬁrst Young Entrepreneurs Programme (YEP) in Singapore for the children of high-net-worth Prior ity Pr ivate clients. The programme was curated in partnership with SC Ventures, our innovat ion, ﬁntech investment and ventures arm, and INSEAD, the world’s leading business school and our Wealth Academy partner. The four-day workshop involved 53 partic ipants of 13 national it ies jo in ing from eight of our top markets in Asia and beyond. The programme focused on build ing early entrepreneurial skills, embedding a human-centred design in translating client ins ights into venture ideas, developing a business model and pitch ing. The YEP is a part of Global Experiences, an inv itat ion-only programme for Prior ity Pr ivate clients, offering access to unique events and bespoke activ it ies. Read more at sc.com/yep 34 Standard Chartered – Annual Report 2024 Strategic report 35 Standard Chartered – Annual Report 2024 Strategic report This section forms our Section 172 disclosure, describ ing how the d irectors considered the matters set out in section 172(1)(a) to (f) of the Companies Act 2006. It also forms the directors’ statement required under section 414CZA of the Act. See the following pages for: • How we engage stakeholders to understand their interests. See pages 35 to 41 • How we engage employees and respond to their interests. See pages 38 to 41 • How we respond to stakeholder interests through sustainable and responsible business. See pages 35 to 41 • How the Board engages directly with shareholders and other stakeholders. See pages 103 to 192 Listen ing and respond ing to stakeholder prior it ies and concerns is crit ical to ach iev ing our purpose and del iver ing on our brand promise, here for good. We strive to mainta in open and constructive relationsh ips w ith a wide range of stakeholders includ ing cl ients, regulators and governments, investors, suppliers, society and employees. Stakeholder feedback, where appropriate, is communicated internally to senior management through the relevant forums and governing committees such as the Sustainab il ity Forum, and to the Board’s Culture and Sustainab il ity Committee which oversees the Group’s approach to its main relationsh ips with stakeholders. We communicate progress regularly with external stakeholders through channels such as sc.com , established social media platforms and this report. Further informat ion on how we engage with our stakeholders, and the in it iat ives that we are members of, can be found at sc.com/ sustainab il itystakeholders Stakeholders Clients As a global bank operating in 53 markets, stakeholder engagement is crucial in ensuring we understand local, regional and global perspectives and trends which inform how we do business. Our stakeholders Clients Regulators and governments Investors Suppliers Society Employees How we create value We want to deliver easy, everyday banking solutions to our clients in an innovat ive yet s imple and cost-effective way with a great customer experience. We enable ind iv iduals to grow, protect and pass on their wealth; we help businesses trade, transact, invest and expand; and we help a variety of ﬁnanc ial inst itut ions, includ ing banks, publ ic sector and development organisat ions, w ith their banking needs. How we serve and engage Our push for a best-in-class client experience is underpinned by innovat ive products and d ig ital stra ight-through services. This includes build ing capab il ity to protect our cl ients against evolving risks in the ecosystem, like fraud and cyber security, and comes with education and increased client communicat ion. To act in the best interests of our clients, we use the ins ights gathered from our data alongside robust polic ies, procedures and the Group’s risk appetite to design and offer products and services that meet client needs, regulatory requirements and Group performance targets. Fees and charges are disclosed to clients in line with regulatory requirements and industry best practice and, where available, benchmarked against competitors. For personal and SME banking products, agreed interest rates, fees and other charges as billed to clients are monitored and assessed locally, with global oversight. Triggers for outlier fees and charges are deﬁned and subject to annual review. Complaints are reviewed on an ongoing basis and are one of the factors that are taken into account prior to amendments to annual interest, fees and charges. We also assess our product portfolio for new risks to ensure they remain appropriate for client needs and aligned to emerging regulation. These quantitat ive and qual itat ive assessments, includ ing Per iod ic Product Rev iews, are intended to provide a complete view of whether to continue, enhance, grow or retire products. Train ing is provided to frontline employees across our branches and contact centres to ident ify and support vulnerable clients. We have also implemented an educational train ing programme for cl ients who need guidance in navigat ing onl ine and mobile channels. 36 Standard Chartered – Annual Report 2024 Strategic report Stakeholders Throughout 2024, we mainta ined our sharp focus on improv ing the client experience across the Bank. We engaged with clients to show them the opportunit ies trade corr idors could bring and how using our network could help them ﬂourish. Our presence in high-growth markets – and ongoing roll-out of dig ital platforms – helps connect our cl ients to the global engines of trade and innovat ion. As part of our a im to reach net zero in our ﬁnanced emiss ions by 2050, our trans it ion ﬁnance team has been working closely with our clients in hard-to-abate sectors on their own transit ions. Th is is in addit ion to our comm itment to mobil ise $300 b ill ion of sustainable ﬁnance between 2021 and 2030. Across the Bank, we have processes and controls aimed to mit igate greenwash ing risks, and to support transparency we publish the details of what constitutes our sustainable products and investments universe externally. Wealth & Retail Banking In 2024, we continued to expand our suite of solutions to help clients grow, protect and pass on their wealth, includ ing core fund offerings for mass afﬂuent clients to alternatives and structured solutions for high-net-worth clients. We strengthened our proposit ions and capab il it ies, adding global experiences, wealth planning, family advisory and trust services. In addit ion, we have evolved our managed investments business to focus on helping clients build foundational and opportunist ic portfol ios. To support this, we offer innovat ive solutions, includ ing our S ignature CIO Funds, a series of foundational portfolios built on our CIO ins ights, ava ilable in 12 markets and contribut ing $2.1 b ill ion dollars in Wealth AUM. We also launched our ﬁrst Young Entrepreneur Programme. The inaugural programme was curated in collaboration with INSEAD and SC Ventures – our innovat ion, ﬁntech investment and ventures arm – and focused on supporting high-net-worth clients’ next generation with business and entrepreneurial skills. It garnered posit ive feedback from the 53 young partic ipants who joined from e ight markets across our network. Corporate & Investment Banking In 2024, we sharpened our focus on serving the cross-border needs of our largest and most sophist icated corporate and ﬁnancial inst itut ion clients who require risk management, ﬁnancing and sector adv isory expertise across Asia, Africa and the Middle East. Our network and experience, combined with our presence in valuable cross-border hubs, means that we can help clients from around the world access new corridors of globalisat ion. We continue to connect capital ﬂows to, through and from Africa, the Middle East and Asia and play a leading role in promoting sustainable ﬁnance. In 2024, in Africa, for example, we were involved in EUR533 mill ion of ﬁnancing, backed by the Afr ican Development Bank, for the government of Côte d’Ivoire and EUR1.29 bill ion of ﬁnancing for the Angolan M in istry of F inance to construct photovoltaic electric ity d istr ibut ion infrastructure. Our clients are at the heart of what we do; everything we have done structurally in 2024 is about leveraging our platform so that we can do more business with them. We are scaling up where we can offer our clients a different iated serv ice, such as Securit ies Serv ices – capital is ing on local custodian capabil it ies across Africa and the Middle East and the growing demand from ﬁnanc ial inst itut ions – as well as sustainable ﬁnance, Islamic banking and RMB internat ional isat ion, all of wh ich are being embedded into our global business teams. Their interests • Different iated product and serv ice offering • Dig itally enabled and pos it ive exper ience • Sustainable ﬁnance • Access to internat ional markets Regulators and governments How we create value We engage with public authorit ies to play our part in supporting the effective function ing of the ﬁnancial system and the broader economy. How we serve and engage We engage with government, regulators and policymakers at the global, regional and national level as well as trade associat ions to share ins ights and support the development of best practices and adoption of consistent approaches across our markets. During 2024, we engaged on the following key topics: • Financ ial serv ices, includ ing but not l im ited to prudent ial regulations, ﬁnanc ial markets, and ﬁnancial conduct and ﬁnancial cr ime. • Sustainable ﬁnance, across a wide range of sub-topics such as transit ion ﬁnance, carbon markets, adaptat ion and resil ience, and cl imate risk. • Technologies and dig ital assets, includ ing for example stablecoin and crypto assets, dig ital asset custody, data sovereignty or the use of artif ic ial intell igence (AI) and internat ional trade and d ig ital trade such as d ig ital tokenisable trade assets. Their interests • Strong capital base and liqu id ity posit ion appropr iate to a global systemically important bank • Robust standards for ﬁnancial conduct and ﬁnancial cr ime • Competit ive econom ies and markets • Sustainable ﬁnance and net zero transit ion • Dig ital innovat ion and use of AI in ﬁnanc ial serv ices • Operational resil ience • Market integr ity and customer protect ion • International and dig ital trade • Financ ial stab il ity Clients continued 37 Standard Chartered – Annual Report 2024 Strategic report How we create value We aim to deliver robust returns and long-term sustainable value for our investors. How we serve and engage We rely on capital from debt and equity investors to execute our business model. Whether they have short or long-term investment horizons, we provide our investors with informat ion about progress aga inst our strategic and ﬁnancial frameworks. Through our footprint and the execution of our sustainab il ity agenda, we provide our investors with exposure to opportunit ies in emerging markets. We believe that our integrated approach to environmental, social and governance (ESG) issues and a strong risk and compliance culture, are key different iators. We cont inue to respond to growing interest from a wide range of stakeholders on ESG matters, includ ing investors. The Group delivered a strong set of results in 2024. Our focus is on build ing on our double-d ig it return on tang ible equity (RoTE) and accelerating to deliver sustainably higher returns over the next three years. We are now targeting a RoTE approaching 13 per cent in 2026. We aim to achieve this through income growth, expense disc ipl ine, ongoing transformation and active capital management as outlined in our 2024–2046 ﬁnanc ial framework, launched at the start of 2024. Regular and transparent engagement with our investors, and the wider market, helps us understand investors’ needs and tailor our public informat ion accord ingly. In addit ion to direct engagement via our Investor Relations team, we communicate through quarterly, half-year and full-year results, conferences, roadshows, investor days and media releases. We continued to expand our use of virtual meetings during 2024, coupled with a growing number of face-to-face interact ions. We also hosted an Afﬂuent Investor sem inar in December and a deep dive for Chinese investors in September. Key investor feedback, recommendations and requests are considered by the Board, whose members keep abreast of current topics of interest. Standard Chartered PLC’s Annual General Meeting (AGM) in May was open to shareholders either in person or electronically via a live video feed of the meeting. All partic ipants had the opportun ity to submit their votes and ask the Board questions. The AGM is our princ ipal engagement event with our retail investors. Further details of our 2024 AGM are on page 185. Sim ilarly, the Group Cha irman, alongside some members of the Board, hosted a hybrid stewardship event for inst itut ional investors in December provid ing shareholders w ith updates on a number of topics, includ ing susta inab il ity, net zero and governance matters. The event included an open question- and-answer session We continue to respond to growing interest from a wide range of stakeholders on ESG matters, includ ing investors. In 2025, we will continue to engage with investors on progress against our strategic prior it ies and actions, as well as our ﬁnancial framework as we progress towards del iver ing sustainably higher returns. Their interests • Safe, strong and sustainable ﬁnanc ial performance • Facil itat ion of sustainable ﬁnance to contribute to the United Nations Sustainable Development Goals • Progress on ESG matters, includ ing advanc ing our net zero agenda Suppliers Supporting a sustainable supply chain We measure and manage our Scope 3 upstream emiss ions and work in partnership with our suppliers to calculate emiss ions and set net zero targets where appropr iate. For further details on our net zero and supply chain emiss ions programmes vis it page 76. Supporting a diverse and inclus ive supply cha in We are committed to build ing mutually beneﬁcial relationsh ips w ith our suppliers to reﬂect the diverse communit ies and cultures we operate in. To support this, our supplier divers ity and inclus ion programme a ims to direct spend and offer support where appropriate, to small and diverse businesses. Supplier divers ity at Standard Chartered incorporates businesses owned by under-represented ind iv iduals or groups – such as women and ethnic minor it ies, as well as micro and small businesses. Further details on the princ iples of Suppl ier Divers ity and Inclus ion can be found in our Supplier Divers ity and Inclusion Standard at: sc.com/supplier-standard To help drive our programme, we are corporate members of not-for-proﬁt organisat ions ded icated to supporting diverse suppliers. This collaboration posit ions us to ident ify and engage small and diverse suppliers, share in best practices, and mainta in awareness about d iverse supplier needs. In addit ion, we engage and support our d iverse suppliers hosting two face-to-face supplier divers ity events in partnership WEConnect – a global network supporting women-owned businesses – in 2024. The events focused on networking, sharing best practices in the sustainab il ity ﬁeld and supplier awards. For further details of our supplier divers ity programme and suppl ier awards events vis it sc.com/supplier-divers ity Their interests • Open, transparent and consistent tendering process • Accurate and on-time payments • Will ingness to adopt suppl ier-driven innovat ion • Obtain guidance on implementat ion of sustainab il ity matters Investors Investors continued 38 Standard Chartered – Annual Report 2024 Strategic report Stakeholders How we create value We strive to operate as a sustainable and responsible company, leveraging our partnerships, networks and expertise to help transform our markets for long-term societal and environmental impact, create more inclus ive econom ies and increase equitable prosperity. How we serve and engage Our Futuremakers partners With the Standard Chartered Foundation, we advanced our strategic partnerships with NGOs and civ il soc iety organisat ions in support of Futuremakers by Standard Chartered, our global youth economic empowerment in it iat ive. Sh ift ing to an impact-focused strategy, we’ve engaged our partners to co-design long-term programmes towards achiev ing our target of enabl ing and supporting 140,000 decent jobs between 2024 and 2030. To deepen our understanding of the impacts of our programmes, we reﬁned our results monitor ing framework and developed a model to estimate the societal return on our Futuremakers investments. This provides a more holist ic analysis to enhance the impact potential of our programmes. We share learning from our new programmatic models both across our portfolio and externally with our peers. Our external stakeholders We seek to promote greater economic inclus ion through our networks, events and sponsorships. In collaboration with Business Fights Poverty, we hosted various learning events, includ ing a gender-focused panel d iscuss ion to celebrate International Women’s Day and a thematic discuss ion on plugging the ﬁnanc ing gap for young entrepreneurs at the ir Global Goals Summit in Nairob i and New York, dur ing the United Nations General Assembly meetings. The aim of these events was to ident ify act ionable strategies and innovat ive partnerships to address global challenges. In addit ion, we sponsored Women of the World Foundation (WOW) as their Global Girls’ Champion to run the WOW bus tour, bring ing gender equality learning to girls and young people across the UK, and we extended the WOW festival to Pakistan and Turkey, reaching over 23,000 children and young people in half a year. Our colleagues We encourage colleagues to give back to their communit ies using their three days paid volunteering leave. To enable a volunteering culture, we gathered feedback and ins ights from our employee volunteering (EV) champions and ran a series of workshops to develop an EV toolkit accessible to all colleagues. We are expanding our focus on skills-based volunteering to leverage our colleagues’ skill sets and deepen our community impact. This year we launched a global skills-based volunteering week provid ing learn ing sessions and volunteering opportunit ies to bu ild awareness across the Bank. To drive partic ipat ion, we organised train-the-trainer workshops to equip our colleagues with skills necessary to conduct ﬁnanc ial education and mentoring sessions with our community stakeholders. In 2024, 53 per cent of colleagues volunteered includ ing contr ibut ing 114,276 hours to sk ills-based volunteering. Their interests • Access to ﬁnance • Economic inclus ion • Gender equity • Skills-based volunteering • Community impact Employees How we create value We recognise that our workforce is key to driv ing our performance and productiv ity and that the d ivers ity of our people, cultures and network sets us apart. To be the best cross-border and afﬂuent bank to our clients, our workforce composit ion, includ ing the sk ills and engagement of our people, is a strategic source of competit ive advantage. So we are developing a workforce that is future ready, and are co-creating with our employees to build an inclus ive, innovat ive and cl ient-centric culture. How we serve and engage By engaging employees and fostering a posit ive exper ience for them, we can better serve our clients and deliver on our Purpose. A culture of inclus ion and amb it ion enables us to unlock innovat ion, make better dec is ions, del iver our business strategy, live our valued behaviours and embody our brand promise here for good. We proactively assess and manage people-related risks, such as capacity, capabil ity and culture, as part of our Group Risk Management Framework. Our people strategy, approved by the Board, is future-focused, with external events accelerating many of the future of work trends which continue to inform our approach. Their interests Translating our brand promise and purpose of driv ing commerce and prosperity through our unique divers ity into our colleagues’ day-to-day experience is crit ical to us remain ing an employer of cho ice across our footprint. The research we have on our employee value proposit ion (EVP) tells us that our exist ing and potent ial employees want to: have interest ing and impactful jobs; innovate with in a d iverse set of markets and for a spectrum of clients; cultivate a brand that sustainably drives commerce and offers enrich ing careers and development; and be supported by great people leaders. They want these elements to be anchored in competit ive rewards and a posit ive work–l ife balance. The employment proposit ion is a key input to our people strategy which supports the delivery of our business strategy. Listen ing to employees Frequent feedback from employee surveys helps us ident ify and close gaps between colleagues’ expectations and their experience. Colleague sentiment is captured through an annual survey as well as regularly through a weekly survey and at key moments, such as when employees join us, leave, or return to work after parental leave. In addit ion to leverag ing inputs from these surveys, the Board and Group Management Team also engage with and listen to the views of colleagues through interact ive sess ions. More informat ion on the Board’s engagement with the workforce can be found on page 121 in the Directors’ report. In 2024, our annual My Voice survey was conducted in May and June. Eighty-seven per cent of our employees (68,590) and 36 per cent of elig ible agency workers (778) part ic ipated. Key measures of satisfact ion have stayed h igh; however, some have seen a decline year-on-year as the impact of our transformation continues to be felt. Overall, the experience of working for the Bank remains a posit ive one. E ighty-three per cent of employees say that the Group meets or exceeds their expectations, 96 per cent feel committed to doing what is required to help the Group succeed, and 88 per cent feel proud about working for the Group. Society 39 Standard Chartered – Annual Report 2024 Strategic report We refreshed our toolkits and guidance to people leaders and ind iv iduals to help navigate ﬂexible working and establish clear, consistent expectations for all colleagues when working ﬂexibly. These include support on having regular conversations with teams on ﬂexi-work arrangements; on organis ing team and ind iv idual work to enhance productiv ity and wellbe ing; on leading in key moments such as onboarding new team members, returning from parental leave and during performance conversations; and on strengthening connections in ﬂexible work environments. Colleagues continue to adopt ways of working that balance the beneﬁts of remote working with face-to-face interact ions to innovate and collaborate as we also continue to re-imag ine our phys ical workspaces with the relevant infrastructure and technology to provide hubs for teamwork, collaboration and learning. Read more about our approach to ﬂexible working at sc.com/ﬂexiblework ing Early in 2024, we launched Appreciate, our new dig ital platform to empower colleagues to give in-the-moment peer-to-peer recognit ion. Democrat is ing how colleagues celebrate each other’s achievements is reinforc ing the importance of two-way feedback as well as recognis ing the behaviours that drive high performance. Hyper- personalis ing how our people feel apprec iated in a way that is most meaningful, to them is also a powerful driver of employee experience. Across the year, the platform was used by over 76 per cent of colleagues to share nearly 700,000 recognit ions w ith each other. Build ing leadersh ip capabil it ies Exceptional performance requires exceptional leadership, and we believe that our people leaders are crit ical to unlocking the potential of our workforce and how they experience the Bank every day. Engaging, developing and measuring our people leaders continues to be a crit ical enabler of our performance and culture. Our leadership agreement sets out clear expectations from our leaders to aspire, insp ire and execute. It also forms the foundat ion of our leadership development curriculum through which one-third of our people leaders are being covered each year to help them build new skills and habits across different leadership stages – includ ing sk ills on coaching, performance management in business-specif ic contexts, lead ing for transformation, and leading through ambigu ity. Wh ile more than 4,200 leaders learned through face-to-face leadership programmes during the year, leadership skill build ing is also made accessible to all colleagues to build the capabil ity deeper into the organisat ion. Nearly 28,000 employees have now experienced the leadership health journey of regular micro-learning activ it ies (since launch in 2021), over 700 have built skills through our ‘virtual escape room’ game for aspir ing leaders, and over 5,500 have partic ipated in experient ial bootcamps on creating an environment of psychological safety and innovat ion. In 2024, 97 per cent of our people leaders received feedback, either through our ‘always on’ feedback tool available to all colleagues or through the structured 360-degree feedback tool that is available to mid-to-senior people leaders. Leaders are also provided a consolidated view of the environment they are creating for their teams, and feedback on their leadership skills, as part of their leadership dashboard, bring ing even greater transparency to performance and development conversations, and highl ight ing the value we place on leadership. Read our Leadership Agreement at sc.com/leadershipagreement We also continue to be recognised as an employer of choice and details of our accolades can be found at sc.com/employer-awards . All of this underscores the strength of our EVP to attract, retain and grow the skills and talent that are crit ical to del iver ing our strategy and outcomes for clients. Driv ing a culture of susta inable high performance As the Group transforms to achieve our strategic ambit ions, we continue to embed our refreshed approach to managing, recognis ing and reward ing performance. We are embedding more regular performance and development conversations, as well as increas ing the exchange of two-way balanced, constructive feedback among peers, stakeholders and team members. At the same time, we are encouraging greater aspirat ion dur ing goal setting as well as placing even more focus on recognis ing outperformance, includ ing by enhanc ing ﬂexib il ity in reward decis ions. These hab its, that mark a culture of high performance, have continued to strengthen each year. In 2024, 64 per cent of colleagues received feedback in the system (versus 60 per cent in 2023, 59 per cent in 2022 and 39 per cent in 2021 when our refreshed approach was ﬁrst launched). We recognise that wellbeing is a driver of sustainable high performance and productiv ity, and are comm itted to supporting our colleagues’ wellbeing at an ind iv idual, team and organisat ional level. Th is means focusing on prevention as well as cure, and striv ing to embed wellbe ing into the ﬂow of work. Globally, colleagues have access to a range of tools and resources to manage their wellbeing, includ ing several progressive beneﬁts, a mental health app, access to 1:1 counselling or therapeutic support, an employee assistance programme (through which professional counselling is also available), wellbeing toolkits, and a network of trained mental health ﬁrst aiders (to date, nearly 600 colleagues have been trained). In 2024, levels of consistent and frequent work- related stress continued to decrease and colleagues felt more comfortable sharing concerns about stress with their people leader. Over three-quarters of our people said they felt able to choose a reasonable balance between their work and personal life, and 80 per cent felt they could adjust work to accommodate personal needs. We continue to drive intervent ions to further enable healthy work ing practices, includ ing market-level exper iments that we are running on sustainable working habits, promoting train ing of wellbe ing champions, and embedding wellbeing skills (such as resil ience and adaptabil ity) into multiple learning programmes. Our continued commitment to embedding our ﬂexible working model (which was launched in 2021) that combines ﬂexib il ity in working patterns, time and locations, is an important part of our efforts to enhance both the productiv ity and experience of our workforce. Over 76 per cent of employees in 42 of our markets are now on agreed ﬂexible working arrangements, with the major ity hav ing signed up to work from the ofﬁce for two to three days per week. Our model purposefully balances client needs and business prior it ies with ind iv idual choice, allowing us to be inclus ive of the diverse needs of our workforce. We continue to explore opportunit ies for enhanc ing ﬂexib il ity across further markets and roles, where regulations and the nature of the work allow for it. Employees continued 40 Standard Chartered – Annual Report 2024 Strategic report Stakeholders Developing skills of future strategic value and enabling careers To keep pace with our strategic prior it ies, evolving customer expectations, ongoing transformation and rapid technological innovat ion, we stay comm itted to a skills-led approach. We are focused on accelerating the development of future skills among our workforce, bring ing in greater agil ity to how skills are deployed to areas of opportunity across the Group and embedding skills purposefully across key talent practices. We are supporting employees to build the skills needed for high performance today, to reskill and upskill for tomorrow, and to be global cit izens who understand the chang ing nature of the world in which we operate. This includes helping them strengthen a combinat ion of human and techn ical skills, as well as enhancing a culture of continuous learning that empowers them to grow, increase their long-term employabil ity and follow their career aspirat ions. Build ing system ic future-focused skills that are antic ipated to be needed to keep pace with the changes happening in the sector (such as in sustainab il ity, innovat ion, data, d ig ital and leadership) is balanced with role-focused performance skills; as well as access to skill-build ing intervent ions that enable role-to-role movement, includ ing into crit ical future roles where our strategic workforce planning analysis predicts an increas ing need for talent. For example, w ith our increas ing focus on enhancing our Afﬂuent client proposit ion in Wealth & Retail Banking, we are invest ing in deliver ing upsk ill ing, reskill ing and redeployment journeys for colleagues to enable them to access opportunit ies as the bus iness segment grows. In Corporate & Investment Banking, we are focusing on sustainab il ity capabil it ies and sales skills in line with our cross-border proposit ion. These efforts a im to ensure that our workforce transformation is closely linked to our business growth and transformation. Learning in classrooms is combined with learning through our online learning platform. Over 71,000 colleagues actively used the platform in 2024 and over 31,000 colleagues have used one or more of our Future Skills Academies which include the Data & Analytics, Dig ital, Cyber, Cl ient Advisory, Sustainable Finance and Leadership Academies. Through skills passports on our AI-enabled internal Talent Marketplace platform, employees can sign up for projects (often cross-functional and cross-location) to build and practise skills on the job, can connect with mentors and access more diverse roles based on skills adjacenc ies. By comb in ing project opportun it ies w ith purposeful internal talent moves, we continue to enhance the career experience of colleagues. Over 43,000 employees are engaging with the Talent Marketplace, with over 2,800 projects being assigned (since launch in 2020). Deploying their skills at speed across our network has resulted in unlocking over $9.5 mill ion in terms of productiv ity. We are also mak ing it easier for colleagues to engage with all that is available for growing their careers, through a range of resources and tools includ ing a ded icated careers hub, careers toolkits, and conversation guides. We are invest ing in developing a workforce that is both knowledgeable about and conﬁdent in working with Artif ic ial Intelligence (AI). Our AI Learning Hub democratises AI awareness and knowledge build ing by provid ing access to all colleagues to immers ive learn ing opportunit ies, interact ive s imulat ions and pract ical case studies, as well as to a range of AI thought leaders, experts and enthusiasts. Further, colleagues can now use GenAI-based assist ive wr it ing tools to upl ift the quality of feedback being shared with team members as well as peers, includ ing mak ing the feedback more impactful and actionable. They can also use GenAI to improve quality and focus when writ ing the ir performance and development goals. Creating an inclus ive workplace Our inclus ive culture and comm itment to divers ity and inclus ion (D&I) are a v ital part of our employee value proposit ion and what enables us to dr ive business success. Through our multiple employee listen ing surveys, and supplemented by qualitat ive feedback, we a im to better understand the lived experiences of our colleagues, and then act to make targeted, meaningful changes to further drive inclus ion and enhance exper ience. Our levels of inclus ion rema in high and is reﬂected in the 82.1 per cent of colleagues who shared posit ive sent iments in the 2024 annual My Voice survey. We continue to invest in efforts towards increas ing awareness around divers ity and inclus ion pr inc iples, unconscious bias and micro-behaviours as well as emphasise the importance of creating an inclus ive env ironment. Many of these aspects are covered in the ‘When we’re all included’ learning programme which had been completed by more than 33,500 colleagues by the end of 2024, as well as the ‘Respect at Work’ e-learning programme that helps colleagues understand what constitutes harassment, bullying, discr im inat ion and v ict im isat ion and cont inues is mandatory for all new joiners. We are committed to abid ing by the laws in all jur isd ict ions in which we operate, includ ing ant i-discr im inat ion laws. We are focused on further strengthening our inclus ive culture, where all our people feel that their ident ity is understood and recognised for its uniqueness and anyone with the capabil ity to excel can do so. Employees are provided, where legally permiss ible, w ith the abil ity to share the ir ident ity data through our internal employee portal. We are encouraging and increas ing self-declarat ion (includ ing soc io-economic status in the UK) so that we can further improve colleague experience by introduc ing pol ic ies and intervent ions representative of the needs of our diverse workforce. We also remain focused on build ing a workforce that is truly representative of our client base and footprint. Our gender divers ity cont inues to grow, with more women leaders moving up to senior roles. Women currently represent 42 per cent of the Board, 14 of our CEOs are women, and representation of women in senior leadership roles increased to 33.1 per cent by the end of 2024. We are committed to continuous improvement in this area and aspire to have 35 per cent representation 1 of women at a global senior level by end of 2025. As of 2024, 33 per cent of our Board ident iﬁes as be ing from an ethnic minor ity background, above our asp irat ion of Employees continued 1 Subject to local legal requirements 41 Standard Chartered – Annual Report 2024 Strategic report 30 per cent. Further, 21.1 per cent of our Group Management Team and their direct reports ident ify as Black, As ian or ethnic minor ity. In the US, Black/Afr ican American representation in senior leadership is 3.6 per cent and Hispan ic/Lat in in senior leadership is 10.9 per cent. In the UK, Black representation in senior leadership is 2.5 per cent and ethnic minor ity in senior leadership is 28.4 per cent. We are currently ahead of our 2025 target in the UK of 20 per cent ethnic minor ity representat ion in senior leadership, and we aim to mainta in th is level through to 2027. We continue to develop strategic partnerships and experiment with programmes to widen our talent pools such as by provid ing tools and strateg ies in career workshops to retain, engage and develop all talent, by improv ing career mobil ity support includ ing through ‘buddy’ ass istance, and by rolling out sponsorship programmes. Leadership commitment remains crit ical to our approach on D&I. Our Global D&I Council is chaired by our CEO, Wealth & Retail Banking and comprises enterprise-wide leaders representing various business, functions and geographies from across the Group. The Council is responsible for our overall D&I strategy, direct ion sett ing, and overseeing the implementat ion of susta inable and measurable improvements. It is focused on developing a diverse talent pipel ine to improve leadership representation, build ing sponsorship muscle, fostering posit ive career progress ion and refreshing our Employee Resource Group approach to enhance colleague experience. Equal Pay is a key princ iple of our Fa ir Pay Charter. Our commitment to paying colleagues fairly and recognis ing sk ills and contribut ions rather than any d iscr im inatory factors, fosters an environment where all colleagues are given an equal chance to succeed. Read more about our approach towards strengthening divers ity and inclus ion, as well as our approach to equal pay and gender and ethnic ity pay gap analys is in our Divers ity, Equ ity & Inclusion Impact Report 2024 at sc.com/fairpayreport . Employees continued Women representation Women 42 % (2023: 38%) Women 34.1 % (2023: 36.1%) Women 45.0 % (2023: 44.8%) Women 33.1 % (2023: 32.5%) Board Management Team and their direct reports All employees Senior leadership 2023 2024 2023 2024 2023 2024 2023 2024 Women 5 Men 7 Women 42 Men 81 Women 36,553 Men 43,665 Women 1,453 Men 2,915 Undisclosed 927 Undisclosed 17 42 Standard Chartered – Annual Report 2024 Strategic report Sustainab il ity overview Non-ﬁnancial and susta inab il ity informat ion statement We have included with in th is Annual Report non-ﬁnanc ial susta inab il ity-related informat ion wh ich we believe is material based on the interests of our key stakeholders as described on pages 35-41 and the results of our material ity assessment (page 60). This table sets out where shareholders and other stakeholders can ﬁnd informat ion about key non-ﬁnancial matters in this report, in compliance with the non-ﬁnanc ial report ing requirements contained in sections 414CA and 414CB of the Companies Act 2006. Further disclosures are available via sc.com/sustainab il ityl ibrary . Climate-related informat ion requ ired under sections 414CA and 414CB of the Companies Act 2006 is integrated throughout this Annual Report. Please refer to the Taskforce on Climate-related Financ ial D isclosures (TCFD) index below. Reporting requirement Where to ﬁnd more informat ion in this report about our polic ies and impact includ ing r isks, due dil igence processes and outcomes Page Descript ion of bus iness model Who we are and what we do 02-03 Our strategy 18 Our business model 19-20 Princ ipal r isks and uncertaint ies Risk review and capital review 193-274 Environmental matters Our operations 77 Our suppliers 78 Our clients 78-98 Employees Employees 38-41 Employee polic ies and engagement 188-189 Health, safety and wellbeing 189-190 Human rights Suppliers 94 Respecting human rights 94 Social matters Commercial activ it ies 91 Philanthrop ic act iv it ies 91-92 Anti-corruption and anti-bribery Code of conduct and ethics 95 Fight ing ﬁnancial cr ime 96 Polit ical donat ions 190 Non-ﬁnancial KPIs Supplementary people informat ion 388-392 Supplementary sustainab il ity informat ion 393-395 See the Sustainab il ity Review section from pages 58 to 102 for further informat ion and deta ils Sustainab il ity overview 43 Standard Chartered – Annual Report 2024 Strategic report Taskforce on Climate-related Financ ial D isclosures (TCFD) reporting index Section TCFD recommendation Page Governance a) The Board’s oversight of climate-related risks and opportunit ies The processes and frequency by which the Board and/or Board committees are informed about climate-related issues 98-99 How the Board and/or Board committees considers climate-related issues when review ing and guid ing strategy, major plans of act ion, risk management polic ies, annual budgets, and business plans 98-99 How the Board monitors and oversees progress against goals and targets for addressing climate-related issues 98-99 b) Management’s role in assessing and managing climate-related risks and opportunit ies Assigned climate-related responsib il it ies to management-level pos it ions and/or comm ittees 98-101 A descript ion of the assoc iated organisat ional structure 98 The processes by which management is informed about climate-related issues 100 How management (through specif ic pos it ions and/or management comm ittees) monitors climate-related issues 100 Strategy a) Climate-related risks and opportunit ies the Group has ident iﬁed over the short, medium and long term Our short, medium and long-term time horizons that we assess climate-related risks and opportunit ies over 89 A descript ion of the spec if ic cl imate-related issues potentially aris ing in each time horizon, and a descript ion of the processes used to determ ine which risks and opportunit ies could have a material ﬁnanc ial impact 256-269 • We disclose the ident iﬁed r isks and opportunit ies for our segments across pages 258-268 • We disclose the ident iﬁed r isks and opportunit ies for our own operat ions across pages 264-265 Our climate-related risks and opportunit ies by geography • We disclose our Wealth & Retail Banking physical risk exposure across our top 10 markets on pages 258-259 • We disclose our Wealth & Retail Banking transit ion r isk ratings in relation to our mortgage portfolio on pages 259-260 • We disclosure our gross physical and transit ion r isk exposure per region on pages 264 • We disclose our sign iﬁcant concentrat ions of credit exposure to carbon-related assets. Refer to our ﬁnanced emiss ions report ing for the Group’s exposure in relation to our 12 highest emitt ing sectors on pages 80-88 b) Impact of climate-related risks and opportunit ies on the Group’s bus inesses, strategy and ﬁnancial plann ing Impact of climate-related risks and opportunit ies on: • Business, strategy and ﬁnanc ial plann ing in products and services • Supply chain and value chain • Adaptation and mit igat ion activ it ies • Operations 69-73 78 256-265 77, 264-265 How climate-related issues serve as an input to the Group’s ﬁnanc ial plann ing process, the time period(s) used, and how these risks and opportunit ies are pr ior it ised 265-269 Impact of climate-related issues on our ﬁnanc ial performance 265-269 c) Resil ience of the Group’s strategy, tak ing into considerat ion d ifferent climate-related scenarios includ ing a two degrees Cels ius or lower scenario Resil ience of our strateg ies to climate-related risks and opportunit ies, tak ing into considerat ion a trans it ion to a low-carbon economy cons istent with a two degree or lower scenario. We also disclose: • Where we believe our strategies may be affected by climate-related risks and opportunit ies • How our strategies might change to address such potential risks and opportunit ies • The potential impact of climate-related issues on ﬁnanc ial performance • The climate-related scenarios and associated time horizon(s) considered For informat ion regard ing the scenarios that we have used, the behaviour of ident iﬁed risks and opportunit ies per segment and in our operations across each scenario, and our assessment of our resil ience to these r isks, please refer to the ‘Assessing the resil ience of our strategy using scenario analysis’ section. 265-269 44 Standard Chartered – Annual Report 2024 Strategic report Sustainab il ity overview Section TCFD recommendation Page Risk Management a) Our processes for ident ify ing and assessing climate-related risks Our risk management processes for ident ify ing and assessing climate-related risks • We describe how we ident ify and assess cl imate-related risks by segment and in our operations with in the ‘Manag ing climate risk’ section as well as how we determine the size and scope of these risks and how they are prior it ised. 256-265 Exist ing and emerg ing regulatory requirements related to climate change that we consider 256 Our processes for assessing the potential size and scope of ident iﬁed cl imate-related risks 256-265 b) Our processes for managing climate-related risks Our processes for managing climate-related risks, includ ing how we make dec is ions to mit igate, transfer, accept, or control those r isks • We describe how we ident ify and assess cl imate-related risks by segment and in our operations with in the ‘Manag ing climate risk’ section, as well as how we determine the size and scope of these risks and how they are prior it ised. 256-265 Our processes for prior it is ing cl imate-related risks, includ ing how mater ial ity determ inat ions are made with in the Group 256-265 c) How the Group’s processes for ident ify ing, assessing and managing climate-related risks are integrated into the Group’s overall risk management • While Climate Risk will remain as a cause in the Group’s Risk Taxonomy and manifest through our businesses and operations, we have formally incorporated Climate Risk into the ESG Risk Type Framework (RTF). 206 Metrics and Targets a) The metrics used by the Group to assess climate-related risks and opportunit ies in line with our strategy and risk management processes Our key metrics used to measure and manage climate-related risks and opportunit ies • Refer to ‘Sustainab il ity Aspirat ions: our long-term goals’ for our key opportun ity metrics • Refer to Streamlined Energy and Carbon Reporting with in the D irectors’ report for our Scope 1 and Scope 2 emiss ions metr ics, and to ‘Our emiss ions sources’ for our Scope 3 emiss ions • Refer to ‘Our operations’ for other key metrics ident iﬁed in relation to our operations • Refer to ‘Managing climate risk’ section for metrics used to assess physical and transit ional risk exposure in relation to our Wealth & Retail Banking and Corporate & Investment Banking segments 64 183-184 258-264 How we incorporate related performance metrics into our remuneration polic ies Refer to our ‘Incentive structure’ section and our ‘Directors’ remuneration report’ 102, 150, 157, 161 b) Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emiss ions, and the related r isks Refer to ‘Our emiss ions sources’, ‘Our Operat ions’ and ‘Our suppliers’ sections for our Scope 1, 2 and 3 emiss ions relat ing to our own operations and supply chain 76-78 Refer to ‘Our clients’ section for our Scope 3 ﬁnanced and facil itated em iss ions 78-79 c) The targets used by the Group to manage climate-related risks and opportunit ies and our performance against targets • Refer to our ‘Sustainab il ity Aspirat ions: our long-term goals’ for descr ipt ions of our long- term targets and ‘Sustainab il ity Strategic Pillars: our short-term targets and immed iate prior it ies’ for descript ions of our inter im targets • We have also outlined other climate-related targets in relation to ‘Our operations’ • We describe the methodologies we have used to calculate our targets in relation to emiss ions w ith in our ‘Cl imate’ section 64-65 77 74-76 45 Standard Chartered – Annual Report 2024 Strategic report The directors are to also disclose the period of time for which they have made the assessment and the reason they consider that period to be appropriate. In consider ing the v iab il ity of the Group, the directors have assessed the key factors includ ing, but not l im ited to; inﬂat ionary pressures, spikes in oil prices, disrupt ion to global supply chains, depreciat ion in emerging market currencies, market volatil ity, econom ic recession, and geopolit ical events l ikely to affect the Group’s business model and strategic plan, future performance, capital adequacy, solvency and liqu id ity taking into account the emerging risks as well as the princ ipal r isks. The viab il ity assessment has been made over a period of three years, which the directors consider appropriate as it is with in both the Group’s strateg ic planning horizon and, the basis upon which its regulatory capital stress tests are undertaken and is representative of the continuous level of regulatory change affecting the ﬁnanc ial serv ices industry. The directors will continue to monitor and consider the appropriateness of this period. The directors have reviewed the corporate plan, the output of the Group’s formalised process of budgeting and strategic planning. The 2025 Corporate Plan is set against a backdrop of sign iﬁcant geopol it ical and macroeconom ic challenges, in particular an uncertain interest rate trajectory. The Corporate Plan is evaluated and approved each year by the Board with conﬁrmation from the Group Ch ief Risk Ofﬁcer that the Plan is aligned with the Enterprise Risk Management Framework and with in Group R isk Appetite Statement and considers the Group’s future projections of proﬁtabil ity, cash ﬂows, capital requirements and resources, liqu id ity ratios and other key ﬁnancial and regulatory rat ios over the period. The Corporate Plan details the Group’s key performance measures, of forecast proﬁt, CET 1 capital ratio forecast, return on tangible equity forecasts, cost to income ratio forecasts and cash investment project ions. The Board has rev iewed the ongoing performance management process of the Group by comparing the reported results to the budgets and corporate plan. The Group performs enterprise-wide stress tests using a range of bespoke hypothetical scenarios that explore the resil ience of the Group to shocks to its balance sheet and business model. To assess the Group’s balance sheet vulnerabil it ies and capital and liqu id ity adequacy, severe but plausible macro- ﬁnancial scenar ios explore shocks that trigger one or more of: • Global slowdowns includ ing recess ions in China, Asian and Western economies that can be acute or more protracted, resulting in severe declines in property prices. • Sharp falls in world trade volumes and disrupt ion to global supply chains, includ ing the severe worsen ing of trade tensions and rise of protection ism. • Inﬂationary pressures in the global economy includ ing volatil ity in commodity prices. • Sign iﬁcant r ises in interest rates and depreciat ion in emerging market currencies, resulting in heightened sovereign risk. • Financ ial market volat il ity, includ ing s ign iﬁcant moves in asset prices driven by a combinat ion of macroeconom ic and geopolit ical events. This year, the primary focus has been on: • The effect of increased global trade tensions leading to severe economic downturns across Asia and other regions, coupled with interest rate reductions and lower commodity prices. • The effect of high interest rates and persistent inﬂat ion, includ ing sp ikes in the oil price, combined with severe market volatil ity and severe econom ic downturns in China and other economies. • The impact of intens ify ing geopolit ical tens ions on economic and ﬁnanc ial act iv ity in our footprint markets includ ing an assessment of both ﬁnancial and operational risks. • Testing liqu id ity resil ience through mult iple severe scenarios sim ilar to S il icon Valley Bank or Cred it Suisse and fully integrat ing them in the liqu id ity risk framework. In 2024, the Group undertook a number of Climate Risk stress tests, includ ing those mandated by the Hong Kong Monetary Authority (HKMA) and internal management scenario analysis. We are also partic ipat ing in the Monetary Authority of Singapore’s (MAS), Bank Negara Malaysia’s (BNM) and Otoritas Jasa Keuangan’s (OJK) climate stress tests. Results are expected to be submitted in 2025. For the internal management scenario analysis, we assessed the resil ience of 94 per cent of Corporate & Investment Banking (CIB) Exposure at Default and expanded our coverage to stress Wealth & Retail Banking (WRB) portfolios as well, across three external scenarios based on Version 3 of the Network for Greening the Financ ial System (NGFS) and three internal management scenarios. The three internal scenarios refer to one bespoke base case and a physical and a transit ion ta il risk scenario. The loan impa irment (LI) intens ity wh ich measures the level of gross expected credit losses against the exposure at default enables us to assess the relative size of our exposure subject to potential losses from climate risks. LI intens ity is not currently material. Overall, we believe that the level of potential credit losses can be mit igated by cont inu ing to take necessary actions, which the Group is already doing across sectors, engaging with our clients on this topic and supporting them in enhancing their climate transit ion plans. We examined exposure concentration in key markets subject to the extreme risk of ﬂoods and storms to assess the acute physical risk, and sea level rise to assess the chronic physical risk. Stranded assets analysis was conducted for resident ial mortgages to ident ify propert ies that are expected to become uninhab itable and/or unusable due to increased frequency and intens ity of phys ical risk events from acute and chronic risks. In 2024, Climate Risk was also considered as part of our formal annual corporate strategy and ﬁnancial planning process. Under this range of scenarios, the results of these stress tests demonstrate that the Group has sufﬁcient cap ital and liqu id ity to continue as a going concern and meet regulatory min imum cap ital and liqu id ity requirements. Viab il ity statement The directors are required to issue a viab il ity statement regarding the Group, explain ing the ir assessment of the prospects of the Group over an appropriate period of time and state whether they have reasonable expectation that the Group will be able to continue in operation and meet its liab il it ies as they fall due. 46 Standard Chartered – Annual Report 2024 Strategic report Viab il ity statement To evaluate the vulnerabil it ies inherent in the Group’s business model, we examine extreme scenarios that could potentially result in the ﬁrm reaching the point of non-viab il ity. The probabil ity of such events occurr ing is considered to be low. During the year, we analysed the escalation of geopolit ical tensions resulting in widespread sanctions and the bifurcat ion of ﬁnancial systems between Eastern and Western ent it ies, along with its impl icat ions to our operational model. The ins ights der ived from these assessments can provide valuable guidance for strategy formulation, risk management, operational resil ience, as well as cap ital and liqu id ity planning. The directors further considered the Group’s Internal Liqu id ity Adequacy Assessment Process, which considers the Group’s liqu id ity posit ion, its framework and whether sufﬁc ient liqu id ity resources are being mainta ined to meet l iab il it ies as they fall due. Funding and liqu id ity was considered in the context of the risk appetite metrics, includ ing the ADR and LCR ratios. The Board Risk Committee (BRC) exercises oversight on behalf of the Board of the key risks of the Group and reviews the Group’s Risk Appetite Statement and Enterprise Risk Management Framework, includ ing rev iew ing the appropriateness and effectiveness of the Group’s risk management systems, key controls and consider ing the impl icat ions of material regulatory change proposals, and review ing reports on pr inc ipal r isks, includ ing Cl imate Risk, to the Group’s business. The BRC receives regular reports on the Group’s key risks, as well as updates on the macroeconomic environment, geopolit ical and sovere ign risks, market developments, and relevant regulatory updates. In 2024, the BRC received regular reports on the impacts from global conﬂicts and discussed potential impact to the Group. The Committee discussed a wide range of potential policy changes and their impl icat ions for the Group, includ ing impacts on our clients, markets, colleagues and regulators. The Committee also reviewed and discussed reports on the risk environment, includ ing the progress of key transformational change management and technology simpl iﬁcation programmes, scrut in is ing the overall risk assessments, resources, capabil it ies and delivery against milestones. For our recovery and resolution planning, the Committee continued to oversee how the Group tested and improved its resolution capabil it ies in line with the Bank of England’s Resolvabil ity Assessment Framework and conducted subsid iary board s imulat ion exerc ises for some of our markets. The Committee had deep dive reviews of our WRB and CIB portfolios with particular focus on areas such as change management, unsecured dig ital lend ing partnerships and private equity ﬁnanc ing act iv it ies. Financ ial Cr ime and Information and Cyber Security risks in the context of these businesses and markets were focused on to fully understand how these risks are being managed and mit igated. Based on the informat ion rece ived, the directors considered the princ ipal uncerta int ies as well as the pr inc ipal r isks in their assessment of the Group’ viab il ity, how these impact the risk proﬁle, performance and viab il ity of the Group and any specif ic m it igat ing or remedial actions necessary. For further details of informat ion relevant to the d irectors, assessment can be found in the following sections of the annual report and accounts: • The Group’s business model (pages 19 to 20) and strategy (page 18) • The Group’s current posit ion and prospects includ ing factors likely to affect future results and development, together with a descript ion of ﬁnancial and fund ing posit ions are described in the client segment reviews (pages 21 to 23) • An update on the key risk themes of the Group is discussed in the Group Chief Risk Ofﬁcer’s review, found in the: – Strategic report (pages 27 to 33) – The BRC section of the Directors’ report (pages 129 to 133) – The Group’s Topical and Emerging Risks, sets out the key external factors that could impact the Group in the coming year (pages 29 to 33) – The Group’s Enterprise Risk Management Framework details how the Group ident iﬁes, manages and governs risk (pages 196 to 200) – The Group’s Risk proﬁle provides an analysis of our risk exposures across all major risk types (page 207 to 269) – The capital posit ion of the Group, regulatory development and the approach to management and allocation of capital are set out in the Capital review (pages 270 to 274). Having considered all the factors outlined above, the directors conﬁrm that they have a reasonable expectation that the Group will be able to continue in operation and meet its liab il it ies as they fall due over the per iod of the assessment up to 21 February 2028. Our Strategic report from pages 1 to 46 has been reviewed and approved by the Board. Bill Winters Group Chief Executive 21 February 2025 Champion ing Tomorrow’s Banking This year more than 50 delegates represented the Bank at Sibos, SWIFT’s annual payments conference and exhib it ion. Held in Beijing, our programme was built around our ongoing theme of Tomorrow’s Banking, with Group Chief Executive, Bill Winters, opening the conference. At the event, we agreed an MOU to facil itate cross-border trade in dig ital currenc ies with the Bank of Communicat ions, spoke on trend ing topics includ ing the future of global trade, enhanc ing cross-border payments and AI’s role in ﬁght ing ﬁnancial cr ime, and launched EmpowHer, a new in it iat ive w ith senior female leaders in the industry. Learn more sc.com/sibos 47 Standard Chartered – Annual Report 2024 Financ ial rev iew 48 Financ ial summary 54 Underlying versus reported results reconcil iat ions 56 Alternative performance measures Financ ial rev iew 48 Standard Chartered – Annual Report 2024 Financ ial rev iew Statement of results 2024 $mill ion 2023 $mill ion Change¹ % Underlying performance Operating income 19,696 17,378 13 Operating expenses (11,790) (11,136) (6) Credit impa irment (557) (528) (5) Other impa irment (588) (130) nm Proﬁt from associates and jo int ventures 50 94 (47) Proﬁt before taxation 6,811 5,678 20 Proﬁt attributable to ordinary shareholders² 4,276 3,581 19 Return on ordinary shareholders’ tangible equity (%) 11.7 10.1 160bps Cost-to-income ratio (excluding bank levy) (%) 59.4 63.4 404bps Reported performance Operating income 19,543 18,019 8 Operating expenses (12,502) (11,551) (8) Credit impa irment (547) (508) (8) Goodwill & other impa irment (588) (1,008) 42 Proﬁt from associates and jo int ventures 108 141 (23) Proﬁt before taxation 6,014 5,093 18 Taxation (1,972) (1,631) (21) Proﬁt for the period 4,042 3,462 17 Proﬁt attributable to parent company shareholders 4,050 3,469 17 Proﬁt attributable to ordinary shareholders 2 3,593 3,017 19 Return on ordinary shareholders’ tangible equity (%) 9.7 8.4 130bps Cost-to-income ratio (%) 64.0 64.1 13bps Net interest margin (%) (adjusted) 1.94 1.67 27bps Balance sheet and capital Total assets 849,688 822,844 3 Total equity 51,284 50,353 2 Average tangible equity attributable to ordinary shareholders 2 36,876 36,098 2 Loans and advances to customers 281,032 286,975 (2) Customer accounts 464,489 469,418 (1) Risk-weighted assets 247,065 244,151 1 Total capital 53,091 51,741 3 Total capital ratio (%) 21.5 21.2 30bps Common Equity Tier 1 35,190 34,314 3 Common Equity Tier 1 ratio (%) 14.2 14.1 19bps Advances-to-deposits ratio (%)³ 53.3 53.3 nm Liqu id ity coverage ratio (%) 138 145 (670)bps UK leverage ratio (%) 4.8 4.7 10bps Cents Cents Change¹ Information per ordinary share Earnings per share – underlying 4 168.1 128.9 39.2 – reported 4 141.3 108.6 32.7 Net asset value per share 5 1,781 1,629 152 Tangible net asset value per share 5 1,541 1,393 148 Number of ordinary shares at period end (mill ions) 2,408 2,637 (9) 1 Variance is better/(worse) other than assets, liab il it ies and r isk-weighted assets. Change is percentage points difference between two points rather than percentage change for total capital ratio (%), common equity tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio (%), liqu id ity coverage ratio (%), UK leverage ratio (%). Change is cents difference between two points rather than percentage change for earnings per share, net asset value per share and tangible net asset value per share 2 Proﬁt attributable to ordinary shareholders is after the deduction of div idends payable to the holders of non-cumulat ive redeemable preference shares and Addit ional T ier 1 securit ies class if ied as equ ity 3 When calculating this ratio, total loans and advances to customers excludes reverse repurchase agreements and other sim ilar secured lend ing, 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 include customer accounts held at fair value through proﬁt or loss 4 Represents the underlying or reported earnings div ided by the bas ic weighted average number of shares 5 Calculated on period end net asset value, tangible net asset value and number of shares Financ ial summary 49 Standard Chartered – Annual Report 2024 Financ ial rev iew Operating income by product 2024 $mill ion 2023 $mill ion Change % Constant currency change¹ % Transaction Services 6,484 6,518 (1) – Payments and Liqu id ity 4,605 4,645 (1) (1) Securit ies & Pr ime Services 611 550 11 12 Trade & Working Capital 1,268 1,323 (4) (2) Global Banking 1,935 1,705 13 15 Lending & Financ ial Solut ions 1,677 1,500 12 13 Capital Markets & Advisory 258 205 26 27 Global Markets 3,450 3,049 13 15 Macro Trading 2,852 2,620 9 10 Credit Trading 644 451 43 47 Valuation & Other Adj (46) (22) (109) (130) Wealth Solutions 2,490 1,944 28 29 Investment Products 1,827 1,357 35 36 Bancassurance 663 587 13 14 CCPL & Other Unsecured Lending 1,201 1,161 3 5 Deposits 3,746 3,570 5 5 Mortgages & Other Secured Lending 395 400 (1) 3 Treasury (23) (902) 97 97 Other 18 (67) 127 142 Total underlying operating income 19,696 17,378 13 14 1 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods The operating income by product commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a constant currency basis, unless otherwise stated. Transaction Services income was broadly ﬂat. Securit ies & Prime Services income was up 12 per cent primar ily due to higher custody, funds and prime brokerage fees. Trade & Working Capital decreased by 2 per cent and Payments and Liqu id ity decreased by 1 per cent mainly attributed to margin compression, albeit passthrough rates were actively managed. Global Banking income increased 15 per cent as Lending & Financ ial Solut ions grew 13 per cent from strong pipel ine execution which led to higher orig inat ion volumes. Capital Market & Advisory income was up 27 per cent driven mostly by higher bond issuances. Global Markets income increased 15 per cent with double- dig it growth in both ﬂow and episod ic income. Flow income grew 12 per cent mostly from increased income from Financ ial Institut ions cl ients and increased FX volumes, and episod ic income grew 18 per cent from higher FX and Rates income. Wealth Solutions income was up 29 per cent, driven by a 36 per cent increase in Investment Products income, with broad based growth across markets and products. This was driven by continued momentum in afﬂuent new-to-bank onboarding, with 265,000 clients onboarded in 2024, and $44 bill ion of net new money, up 61 per cent year-on-year driven by strong internat ional ﬂows. CCPL & Other Unsecured Lending income was up 5 per cent with volume and margin growth in both Personal Loans and Credit Cards. Deposits income increased 5 per cent mainly from growth in WRB CASA and Time Deposit volumes. Mortgages & Other Secured Lending income was up 3 per cent from higher margins as the cost of funding reduced, particularly with lower HIBOR rates, albeit partly offset by lower mortgage volumes. Treasury loss decreased by $879 mill ion largely dr iven by beneﬁts from the roll-off of the short-term hedge of $455 mill ion, $156 m ill ion translat ion gains on the revaluation of FX posit ions in Egypt, and repric ing of treasury assets. Other income of $18 mill ion includes $139 mill ion related to hyperinﬂat ionary account ing adjustments in Ghana partly offset by higher funding costs of non-ﬁnanc ial assets. Proﬁt before tax by client segment 2024 $mill ion 2023 $mill ion Change % Constant currency change¹ % Corporate & Investment Banking 5,581 5,436 3 4 Wealth & Retail Banking 2,463 2,487 (1) (1) Ventures (390) (408) 4 4 Central & other items (843) (1,837) 54 54 Underlying proﬁt before taxation 6,811 5,678 20 21 1 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods 50 Standard Chartered – Annual Report 2024 Financ ial rev iew The client segment and geographic region commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a constant currency basis, unless otherwise stated. Corporate & Investment Banking (CIB) proﬁt before taxation increased 4 per cent. Income grew 6 per cent with strong performance in Global Markets with double-dig it growth in both ﬂow and episod ic income and strong performance in Global Banking from higher orig inat ion volumes. Expenses were 9 per cent higher, mainly from investments, performance-related pay increases and inﬂat ion, while credit impa irment was a net release of $106 m ill ion. Other impa irment of $310 m ill ion pr imar ily related to the write-off of software assets. Wealth & Retail Banking (WRB) proﬁt before taxation was down 1 per cent. Income grew by 11 per cent, driven by a record performance in Wealth Solutions with broad-based growth across products and markets as well as a 14 per cent growth in Bancassurance income. Expenses increased 9 per cent, mainly from increased investment spend and inﬂat ion. Credit impa irment charge of $644 m ill ion was up $290 m ill ion, mainly from the higher interest rate environment impact ing repayments on credit cards and personal loans, and the growth and maturation of the dig ital partnersh ip portfolios in China and Indonesia. Other impa irment charge pr imar ily related to the write-off of software assets. Ventures loss before tax decreased $18 mill ion to $390 m ill ion, with income up 16 per cent to $183 mill ion, dr iven by a 60 per cent increase in income from the two dig ital banks to $142 mill ion. Expenses grew by 8 per cent, reﬂect ing the Group’s continued investment in transformational dig ital in it iat ives, wh ile the $74 mill ion impa irment charge was down $11 mill ion year-on-year as del inquency rates have improved in Mox. Central & other items (C&O) recorded a loss before tax of $843 mill ion wh ich was 54 per cent lower than the prior year. Treasury losses of $24 mill ion decreased by $908 m ill ion, largely driven by beneﬁts from the roll-off of the short-term hedge and repric ing of assets, and $156 m ill ion translat ion gains on the revaluation of FX posit ions in Egypt. Other products loss of $97 mill ion decreased by $73 m ill ion mostly driven by a $139 mill ion ga in relating to a hyperinﬂat ionary accounting adjustment in Ghana. Expenses, which include UK bank levy, central corporate costs and recharges, decreased by $115 mill ion wh ile there was a credit impa irment release of $55 m ill ion mostly from sovere ign- related portfolio movements. Adjusted net interest income and margin 2024 $mill ion 2023 $mill ion Change¹ % Adjusted net interest income 2 10,462 9,547 10 Average interest-earning assets 539,338 572,520 (6) Average interest-bearing liab il it ies 539,787 540,350 – Gross yield (%) 3 5.17 4.76 41 Rate paid (%) 3 3.22 3.27 (5) Net yield (%) 3 1.95 1.49 46 Net interest margin (%) 3,4 1.94 1.67 27 1 Variance is better/(worse) other than assets and liab il it ies wh ich is increase/(decrease) 2 Adjusted net interest income is reported net interest income less funding costs for the trading book, cash collateral and prime services 3 Change is the basis points (bps) difference between the two periods rather than the percentage change 4 Adjusted net interest income div ided by average interest-earning assets, annualised Adjusted net interest income increased 10 per cent driven by an increase in the net interest margin, which averaged 194 basis points in the year, a 27 basis points year-on-year uplift, beneﬁtt ing from the roll-off of the short-term hedges as well as improved asset mix from a reduction in treasury assets to fund the trading book. This was partly offset by lower average interest earning asset volumes, reﬂecting the reduction in Treasury assets, and the impact of elevated pass-through rates on deposit pric ing w ith in CIB. • Average interest-earning assets were down by $33 bill ion primar ily due to a reduct ion in Treasury assets following on from an increase in demand for funding of trading book assets, the impact of FX translation and a decrease in underlying average loans and advances to customers driven by a decline in mortgages. Gross yields increased 41 basis points compared with the prior year due to the impact of higher average interest rates and an improved balance sheet mix • Average interest-bearing liab il it ies were broadly stable year-on-year as growth in WRB customer accounts was offset by the impact of FX translation and managed outﬂow of more expensive CIB and Treasury balances. The rate paid on liab il it ies decreased 5 bas is points in spite of higher average interest rates and elevated passthrough rates on CIB deposits reﬂecting the impacts of the increased trading book funding cost adjustment, deposit insurance reclassif icat ion and roll-off of the loss-making short-term hedges as well as improved mix with strong growth in WRB deposits 51 Standard Chartered – Annual Report 2024 Financ ial rev iew Credit risk summary Income Statement (Underlying view) 2024 $mill ion 2023 $mill ion Change 1 % Total credit impa irment charge/(release) 2 557 528 5 Of which stage 1 and 2 2 371 138 169 Of which stage 3 2 186 390 (52) 1 Variance is increase/(decrease) comparing current reporting period to prior reporting period 2 Refer to Credit Impairment charge table in Risk review section (page 226) for reconcil iat ion from underlying to reported credit impa irment Balance sheet 2024 $mill ion 2023 $mill ion Change 1 % Gross loans and advances to customers 2 285,936 292,145 (2) Of which stage 1 269,102 273,692 (2) Of which stage 2 10,631 11,225 (5) Of which stage 3 6,203 7,228 (14) Expected credit loss provis ions (4,904) (5,170) (5) Of which stage 1 (483) (430) 12 Of which stage 2 (473) (420) 13 Of which stage 3 (3,948) (4,320) (9) Net loans and advances to customers 281,032 286,975 (2) Of which stage 1 268,619 273,262 (2) Of which stage 2 10,158 10,805 (6) Of which stage 3 2,255 2,908 (22) Cover ratio of stage 3 before/after collateral (%) 3 64/78 60/76 4/2 Credit grade 12 accounts ($mill ion) 969 2,155 (55) Early alerts ($mill ion) 5,559 5,512 1 Investment grade corporate exposures (%) 3 74 73 1 Aggregate top 20 corporate exposures as a percentage of Tier 1 capital 3,4 61 62 (1) 1 Variance is increase/(decrease) comparing current reporting period to prior reporting period 2 Includes reverse repurchase agreements and other sim ilar secured lend ing held at amortised cost of $9,660 mill ion at 31 December 2024 and $13,996 m ill ion at 31 December 2023 3 Change is the percentage points difference between the two points rather than the percentage change 4 Excludes repurchase and reverse repurchase agreements Asset quality remained resil ient in 2024, with an improvement in a number of underlying credit metrics. The Group continues to be vig ilant in managing persistent and evolving geopolit ical and macroeconom ic risks, which have led to id iosyncrat ic stress in a select number of geographies and industry sectors. Credit impa irment charge of $557 m ill ion charge was up 5 per cent year-on-year, representing a loan loss rate of 19 basis points. WRB charges of $644 mill ion were up $290 mill ion ma inly from the higher interest rate environment impact ing repayments on cred it cards and personal loans, and the growth and maturation of the dig ital partnersh ip portfolios in China and Indonesia. The $74 mill ion charge in Ventures was down $11 mill ion year-on-year, as del inquency rates have improved in Mox. There was net recovery in CIB of $106 mill ion, beneﬁtting from releases and repayments. The Group retains a China commercial real estate (CRE) management overlay of $70 mill ion and a $58 m ill ion overlay for clients who have exposure to the Hong Kong CRE sector. Gross stage 3 loans and advances to customers of $6.2 bill ion were 14 per cent lower year-on-year as repayments, client upgrades and write-offs more than offset new inﬂows. Credit-impa ired loans represented 2.2 per cent of gross loans and advances, down from 2.5 per cent in the prior year. The stage 3 cover ratio before collateral of 64 per cent increased by 4 percentage points, while the cover ratio post collateral at 78 per cent increased 2 percentage points, both due to a reduction in gross stage 3 balances. Credit grade 12 balances decreased by $1.2 bill ion to $1.0 b ill ion primar ily from the reversal of an ex ist ing $1 b ill ion sovere ign related exposure from reverse repurchase agreements to investment securit ies. Early alert accounts of $5.6 b ill ion remained broadly stable year-on-year. The proportion of investment grade corporate exposures of 74 per cent was broadly stable year-on-year. 52 Standard Chartered – Annual Report 2024 Financ ial rev iew Restructuring, goodwill impa irment and other items 2024 2023 Restructuring³ $mill ion Goodwill and other impa irment $mill ion DVA $mill ion Net loss on businesses disposed off/held for sale¹ $mill ion Other items² $mill ion Restructuring $mill ion Goodwill and other impa irment⁴ $mill ion DVA $mill ion Net gain on businesses disposed off/ held for sale $mill ion Other items $mill ion Operating income 103 – (24) (232) – 362 – 17 262 – Operating expenses (612) – – – (100) (415) – – – – Credit impa irment 10 – – – – 20 – – – – Other impa irment – – – – – (28) (850) – – – Proﬁt from associates and joint ventures 58 – – – – 47 – – – – Proﬁt/(loss) before taxation (441) – (24) (232) (100) (14) (850) 17 262 – 1 Net loss on businesses disposed off/ held for sale 2024 includes $172 mill ion pr imar ily relat ing to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe, $26 mill ion loss on sale of Angola, $19 m ill ion loss on S ierra Leone Partial exit and $15 mill ion loss on the Av iat ion bus iness disposal 2 Other items 2024 include $100 mill ion charge relat ing to Korea equity linked securit ies (ELS) portfol io 3 Restructuring operating expenses 2024 includes $156m of Fit For Growth (FFG) costs that are primar ily severance costs, costs of staff work ing on FFG in it iat ives and legal and professional fees 4 Goodwill and other impa irment include $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) 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 sign iﬁcant or mater ial in the context of the Group’s normal business earnings for the period and items which management and investors would ordinar ily ident ify separately when assess ing underlying performance period-by-period. Restructuring charges of $441 mill ion, reﬂect the impact of actions to transform the organisat ion to improve productiv ity, primar ily add it ional redundancy charges, s impl ify ing technology platforms and optim is ing the Group’s ofﬁce space and property footprint, of which $156 mill ion relates to the Fit for Growth programme. This was partly offset by proﬁts on the remain ing Pr inc ipal F inance portfolio. Net loss on businesses disposed of/held for sale of $232 mill ion includes losses related to the sale of Zimbabwe of $172 mill ion, Angola of $26 mill ion and S ierra Leone of $19 mill ion, all primar ily from the recycl ing of FX translation losses from reserves into the income statement, with no impact on tangible equity or capital, and $15 mill ion loss on the sale of the Aviat ion bus iness. Other items of $100 mill ion relate to a charge booked for partic ipat ion in a compensation scheme recommended by the Korean Financ ial Superv isory Service. Movements in the Debit Valuation Adjustment (DVA) were a negative $24 mill ion dr iven by the tighten ing of the Group’s asset swap spreads. Balance sheet and liqu id ity 2024 $mill ion 2023 $mill ion Increase/ (decrease) $mill ion Increase/ (decrease) % Assets Loans and advances to banks 43,593 44,977 (1,384) (3) Loans and advances to customers 281,032 286,975 (5,943) (2) Other assets 525,063 490,892 34,171 7 Total assets 849,688 822,844 26,844 3 Liab il it ies Deposits by banks 25,400 28,030 (2,630) (9) Customer accounts 464,489 469,418 (4,929) (1) Other liab il it ies 308,515 275,043 33,472 12 Total liab il it ies 798,404 772,491 25,913 3 Equity 51,284 50,353 931 2 Total equity and liab il it ies 849,688 822,844 26,844 3 Advances-to-deposits ratio (%) 1 53.3 53.3 Liqu id ity coverage ratio (%) 138 145 1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods 2 The Group excludes $19,187 mill ion held w ith central banks (31 December 2023: $20,710 mill ion) that has been conﬁrmed as repayable at the po int of stress. Advances exclude repurchase agreement and other sim ilar secured lend ing of $9,660 mill ion (31 December 2023: $13,996 m ill ion) and include loans and advances to customers held at fair value through proﬁt or loss of $7,084 mill ion (31 December 2023: $7,212 m ill ion). Depos its include customer accounts held at fair value through proﬁt or loss of $21,772 mill ion (31 December 2023: $17,248 m ill ion) 53 Standard Chartered – Annual Report 2024 Financ ial rev iew The Group’s balance sheet remains strong, liqu id and well divers iﬁed: • Loans and advances (L&A) to customers decreased 2 per cent, or $6 bill ion, to $281 b ill ion as at 31 December 2024. This was driven by a $9 bill ion decrease from Treasury and securit ies-based lend ing and a $8 bill ion decrease from currency translation. Excluding these items L&A was up a net $12 bill ion on an underly ing basis, mainly from the execution of pipel ine deals in Global Banking, partly offset by a decline in mortgages • Customer accounts decreased 1 per cent, or $5 bill ion, to $464 bill ion. Exclud ing the $9 bill ion impact of currency translation, customer accounts grew 1 per cent. This was primar ily dr iven by an increase of $16 bill ion in WRB Time Deposits and $7 bill ion in WRB CASA partly offset by a $5 bill ion decrease in Transaction Services from CASA outﬂows and a $12 bill ion decrease in Corporate Term Deposits from treasury management activ it ies • Other assets increased 7 per cent, or $34 bill ion, from 31 December 2023 with a $31 bill ion increase in derivat ive balances and $30 bill ion increase in ﬁnanc ial assets held at fair value through proﬁt or loss, primar ily in reverse repurchase agreements and debt securit ies and other elig ible b ills. This was partly offset by a decrease in cash and balances at central banks of $6 bill ion, a $17 b ill ion reduction in investment securit ies and $4 b ill ion reduct ion in other ﬁnanc ial assets held at amort ised cost • Other liab il it ies increased 12 per cent, or $33 bill ion, from 31 December 2023 with a $26 bill ion increase in derivat ive balances and a $5 bill ion increase in other ﬁnanc ial l iab il it ies held at amortised cost The advances-to-deposits ratio was ﬂat year-on-year at 53.3 per cent. The point-in-time LCR of 138 per cent decreased 7 percentage points year-on-year and 5 percentage points quarter-on-quarter due to ongoing treasury liab il ity optim isat ion, LCR normalisat ion from surplus levels and some seasonal CASA outﬂows. It remains well above the min imum regulatory requ irement of 100 per cent. Risk-weighted assets 2024 $mill ion 2023 $mill ion Change 1 $mill ion Change 1 % By risk type Credit risk 189,303 191,423 (2,120) (1) Operational risk 29,479 27,861 1,618 6 Market risk 28,283 24,867 3,416 14 Total RWAs 247,065 244,151 2,914 1 1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods Total risk-weighted assets (RWA) of $247.1 bill ion increased $2.9 bill ion or 1 per cent in comparison to 31 December 2023: • Credit risk RWA decreased by $2.1 bill ion to $189.3 b ill ion. This was mainly driven by decreases of $3.2 bill ion reﬂect ing improved asset quality, $2.6 bill ion from opt im isat ion actions and $4.9 bill ion from fore ign currency translation, partly offset by a $5.0 bill ion increase from changes in asset growth and mix, and $3.1 bill ion increase from derivat ives • Operational Risk RWA increased by $1.6 bill ion to $29.5 b ill ion mainly due to a marginal increase in average income as measured over a rolling three-year time horizon for certain products • Market risk RWA increased by $3.4 bill ion to $28.3 b ill ion as RWA were deployed to help clients capture market opportunit ies Capital base and ratios 2024 $mill ion 2023 $mill ion Change 1 $mill ion Change 1 % CET1 capital 35,190 34,314 876 3 Addit ional T ier 1 capital (AT1) 6,482 5,492 990 18 Tier 1 capital 41,672 39,806 1,866 5 Tier 2 capital 11,419 11,935 (516) (4) Total capital 53,091 51,741 1,350 3 CET1 capital ratio (%) 2 14.2 14.1 19bps Total capital ratio (%) 2 21.5 21.2 30bps Leverage ratio (%) 2 4.8 4.7 10bps 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’s CET1 ratio of 14.2 per cent was 19 basis points higher year-on-year and is 3.8 percentage points above the Group’s latest regulatory min imum of 10.5 per cent. Underly ing proﬁt accretion enabled funding of shareholder distr ibut ions. There was 167 basis points of CET1 accretion from underlying proﬁts, and a further 61 basis points uplift primar ily from fa ir value gains on other comprehensive income, FX , software intang ibles and regulatory cap ital adjustments. This was partly offset by 50 basis points from an increase in RWAs. The Group completed a $1 bill ion share buyback programme on 25 June 2024, and as of 31 December 2024 the $1.5 bill ion share buyback programme announced on 30 July 2024 was nearly complete, having spent $1,354 mill ion purchas ing 126.3 mill ion ord inary shares. Even though the share buyback completed on 30 January 2025, the entire $1.5 bill ion is deducted from CET1 in the reporting period. The 2024 share buybacks reduced the CET1 ratio by 102 basis points. The Board has recommended a ﬁnal div idend of 28 cents per share or $679 mill ion result ing in a total 2024 ordinary div idend of 37 cents a share or $909 m ill ion. Th is, combined with the payments due to AT1 and preference shareholders cost approximately 57 basis points. The Board has announced a share buyback for up to a maximum considerat ion of $1.5 b ill ion to further reduce the number of ordinary shares in issue by cancelling the repurchased shares. The terms of the buyback will be published, and the programme will start shortly and is expected to reduce the Group’s CET1 ratio in the ﬁrst quarter of 2025 by 61 basis points. The Group’s UK leverage ratio of 4.8 per cent remains sign iﬁcantly above its min imum requ irement of 3.7 per cent. 54 Standard Chartered – Annual Report 2024 Underlying versus reported results Financ ial rev iew Operating income by client segment Reconcil iat ion of underlying versus reported operating income by client segment set out in Note 2, Segmental informat ion, on page 299. Net interest income and non NII 2024 2023 Underlying $mill ion Restructuring $mill ion Adjustment for Trading book funding cost and Others $mill ion Reported $mill ion Underlying $mill ion Restructuring $mill ion Adjustment for Trading book funding cost and Others $mill ion Reported $mill ion Net interest income 10,446 16 (4,096) 6,366 9,557 (10) (1,778) 7,769 Non NII 9,250 (169) 4,096 13,177 7,821 651 1,778 10,250 Total income 19,696 (153) – 19,543 17,378 641 – 18,019 Proﬁt before taxation (PBT) Reconcil iat ion of underlying versus reported Proﬁt/(loss) before taxation is set out in Note 2, Segmental informat ion, on page 298. Proﬁt before taxation (PBT) by client segment Reconcil iat ion of underlying versus reported Proﬁt/(loss) before taxation by client segment is set out in Note 2, Segmental informat ion, on page 299. Return on tangible equity (RoTE) 2024 $mill ion 2023 $mill ion Average parent company shareholders’ equity 44,478 43,549 Less: Preference share premium (1,494) (1,494) Less: Average intang ible assets (6,108) (5,957) Average ordinary shareholders’ tangible equity 36,876 36,098 Proﬁt for the period attributable to equity holders 4,042 3,462 Non-controlling interests 8 7 Div idend payable on preference shares and AT1 class if ied as equ ity (457) (452) Proﬁt for the period attributable to ordinary shareholders 3,593 3,017 Items normalised: Restructuring 441 14 Goodwill & other impa irment 1 – 850 Net losses/(gains) on sale of businesses 232 (262) Ventures FVOCI unrealised gains net of tax 39 69 DVA 24 (17) Other items 2 100 – Tax on normalised items (114) (21) Underlying proﬁt for the period attributable to ordinary shareholders 4,315 3,650 Underlying return on tangible equity (%) 11.7 10.1 Reported return on tangible equity (%) 9.7 8.4 1 Goodwill and other impa irment include $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) 2 Other items 2024 include $100 mill ion charge relat ing to Korea equity linked securit ies (ELS) portfol io Underlying versus reported results reconcil iat ions Reconcil iat ions between underlying and reported results are set out in the tables below: 55 Standard Chartered – Annual Report 2024 Financ ial rev iew 2024 2023 Corporate & Investment Banking % Wealth & Retail Banking % Ventures % Central & other items % Total % Corporate & Investment Banking % Wealth & Retail Banking % Ventures % Central & other items % Total % Underlying RoTE 19.0 24.4 nm (20.9) 11.7 19.5 25.3 nm (27.0) 10.1 Restructuring Of which: Income 0.3 0.3 – 0.2 0.3 1.4 0.6 – 0.3 1.0 Of which: Expenses (1.0) (2.5) nm (2.1) (1.7) (1.3) (1.4) nm (0.6) (1.1) Of which: Credit impa irment – – – – – 0.1 – – 0.1 0.1 Of which: Other impa irment – – – (0.1) – (0.1) – – (0.2) (0.1) Of which: Proﬁt from associates and joint ventures – – – 0.8 0.2 – – – 0.6 0.1 Net gain/(loss) on businesses disposed/ held for sale – – – (3.3) (0.6) 1.3 – – – 0.7 Goodwill and other impa irment¹ – – – – – – – – (11.1) (2.3) Ventures FVOCI unrealised gains/(losses) net of taxes – – nm – (0.1) – – nm – (0.2) DVA (0.1) – – – (0.1) 0.1 – nm – – Other items – (1.3) – – (0.3) – – nm – – Tax on normalised items 0.2 0.8 nm (0.1) 0.3 (0.4) 0.2 nm 1.1 0.1 Reported RoTE 18.4 21.7 nm (25.5) 9.7 20.6 24.7 nm (36.8) 8.4 1 Goodwill and other impa irment include $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) Net charge-off ratio 2024 2023 Credit impa irment (charge)/release for the year/period $mill ion Net average exposure $mill ion Net charge-off ratio % Credit impa irment (charge)/release for the year/period $mill ion Net average exposure $mill ion Net charge-off ratio % Stage 1 22 314,092 (0.01) 42 320,649 (0.01) Stage 2 (368) 10,176 3.62 (262) 11,674 2.24 Stage 3 (244) 2,550 9.57 (386) 3,117 12.38 Total exposure (590) 326,818 0.18 (606) 335,440 0.18 Earnings per ordinary share (EPS) 2024 Underlying $mill ion Restructuring $mill ion Other items 2 $mill ion Net gain on sale of businesses $mill ion Goodwill & other impa irment¹ $mill ion DVA $mill ion Tax on normalised items $mill ion Reported $mill ion Proﬁt/(loss) for the year attributable to ordinary shareholders 4,276 (441) (100) (232) – (24) 114 3,593 Basic – Weighted average number of shares (mill ions) 2,543 2,543 Basic earnings per ordinary share (cents) 168.1 141.3 2023 Proﬁt/(loss) for the year attributable to ordinary shareholders 3,581 (14) – 262 (850) 17 21 3,017 Basic – Weighted average number of shares (mill ions) 2,778 2,778 Basic earnings per ordinary share (cents) 128.9 108.6 1 Goodwill and other impa irment include $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) 2 Other items 2024 include $100 mill ion charge relat ing to Korea equity linked securit ies (ELS) portfol io 56 Standard Chartered – Annual Report 2024 Alternative performance measures Financ ial rev iew An alternative performance measure is a ﬁnanc ial measure of histor ical or future ﬁnancial performance, ﬁnancial pos it ion, or cash ﬂows, other than a ﬁnancial measure deﬁned or specif ied in the applicable ﬁnanc ial report ing framework. The following are key alternative performance measures used by the Group to assess ﬁnancial performance and ﬁnancial pos it ion. Advances-to-deposits/customer advances-to-deposits (ADR) ratio: The ratio of total loans and advances to customers relative to total customer accounts, excluding approved balances held with central banks, conﬁrmed as repayable at the point of stress. A low advances-to-deposits ratio demonstrates that customer accounts exceed customer loans resulting from emphasis placed on generating a high level of stable funding from customers. Average interest earning balance: Daily average of the interest earning assets and interest bearing liab il it ies balances excluding the daily average cash collateral balances in other assets and other liab il it ies that are related to the Global Markets trading book. Constant currency basis: A performance measure on a constant currency basis is presented such that comparative periods are adjusted for the current year’s functional currency rate. The following balances are presented on a constant currency basis when described as such: 1. Operating income, 2. Operating expenses, 3. Proﬁt before tax and 4. RWAs or risk-weighted assets. Cost-to-income ratio (CIR): The proportion of total operating expenses to total operating income. Cover ratio: The ratio of impa irment prov is ions for each stage to the gross loan exposure for each stage. Cover ratio after collateral/cover ratio includ ing collateral: The ratio of impa irment prov is ions for stage 3 loans and realisable value of collateral held against these non- performing loan exposures to the gross loan exposure of stage 3 loans. Gross yield: Reported interest income div ided by average interest earning assets. Income return on risk weighted assets (IRoRWA): Annualised Income excluding Debit Valuation Adjustment as a percentage of Average RWA. Jaws: The difference between the rates of change in revenue and operating expenses. Posit ive jaws occurs when the percentage change in revenue is higher than, or less negative than, the corresponding rate for operating expenses. Loan loss rate: Credit Impairment Proﬁt & Loss on Loans & Advances to Banks & Customers over Gross Average Loans and Advances to Banks and Customers excluding FVTPL loans. Net charge-off ratio: The ratio of net credit impa irment charge or release to average outstanding net loans and advances. Net tangible asset value per share: Ratio of net tangible assets (total tangible assets less total liab il it ies) to the number of ordinary shares outstanding at the end of a reporting period. Net yield: Gross yield on average assets less rate paid on average liab il it ies. NIM or Net Interest Margin: Reported net interest income adjusted for trading book funding cost, cash collateral and prime services on interest earning assets, div ided by average interest-earning assets excluding ﬁnanc ial assets measured at fair value through proﬁt or loss. Non NII: Reported non NII is a sum of net fees and commiss ion, net trading income and other operating income Rate paid: Reported interest expense adjusted for interest expense incurred on amortised cost liab il it ies used to fund ﬁnancial instruments held at fair value through proﬁt or loss, div ided by average interest bearing liab il it ies RoE or Return on Equity: The ratio of the current year’s proﬁt available for distr ibut ion to ordinary shareholders plus fair value movements through other comprehensive income relating to the Ventures segment to the weighted average ordinary shareholders’ equity for the reporting period. RoTE or Return on Ordinary Shareholders’ Tangible Equity: The ratio of the current year’s proﬁt available for distr ibut ion to ordinary shareholders to the average tangible equity, being ordinary shareholders’ equity less the average intang ible assets for the reporting period. Where a target RoTE is stated, this is based on proﬁt and equity expectations for future periods. TSR or Total Shareholder Return: The total return of the Group’s equity (share price growth and div idends) to investors. Underlying net interest income: Reported net interest income normalised to an underlying basis adjusted for trading book funding cost, cash collateral and prime services. Underlying/normalised: A performance measure is described as underlying/normalised if the statutory result has been adjusted for restructuring and other items representing proﬁts or losses of a capital nature; DVA; amounts consequent to investment transactions driven by strategic intent, excluding amounts consequent to Ventures transactions, as these are considered part of the Group’s ordinary course of business; and other infrequent and/or exceptional transactions that are sign iﬁcant or mater ial in the context of the Group’s normal business earnings for the period, and items which management and investors would ordinar ily ident ify separately when assessing performance period-by-period. Restructuring includes impacts to proﬁt or loss from businesses that have been disclosed as no longer part of the Group’s ongoing business, redundancy costs, costs of closure or relocation of business locations, impa irments of assets and other costs which are not related to the Group’s ongoing business. Restructuring in this context is not the same as a restructuring provis ion as deﬁned in IAS 37. A reconcil iat ion between underlying/normalised and statutory performance is contained in Note 2 to the ﬁnanc ial statements. The following balances and measures are presented on an underlying basis when described as such: 1. Operating income, 2. Operating expenses, 3. Proﬁt before tax and 4. Earnings per share (basic and diluted) 5. CIR 6. Jaws and 7. RoTE. Underlying non NII: Reported non NII normalised to an underlying basis adjusted for trading book funding cost and ﬁnancial guarantee Fees on interest earning assets. In prior periods Underlying Non NII was described as underlying other income. Underlying RoTE: The ratio of the current year’s underlying proﬁt attributable to ordinary shareholders plus fair value on OCI equity movement relating to Ventures segment to the weighted average tangible equity, being ordinary shareholders’ equity less the intang ible assets for the reporting period. Alternative performance measures Backing innovat ive carbon capture and storage technology We supported the UK’s East Coast Cluster, a UK Government-backed in it iat ive to promote industr ial decarbonisat ion and carbon capture and storage. The project aims to capture up to 2 mill ion tonnes of CO 2 annually while provid ing up to 742 megawatts of dispatchable, low-carbon energy to the grid. By helping to ﬁnance this project, we’re helping to facil itate the decarbon isat ion of hard-to-abate em itters in the region, in support of the UK’s net zero ambit ions. Learn more sc.com/ecc 57 Standard Chartered – Annual Report 2024 Sustainab il ity review Sustainab il ity Review 63 Our approach to sustainab il ity 69 Sustainable ﬁnance 74 Climate 90 Nature 91 Social impact 93 Managing Environmental and Social Risk 95 Integrity, conduct and ethics 98 Sustainab il ity governance 58 Standard Chartered – Annual Report 2024 Sustainab il ity review Sustainab il ity review The Sustainab il ity review provides informat ion on the Group’s approach to susta inab il ity, related governance structures, how we manage environmental, social, and climate risk, and mobil ise sustainable ﬁnance to help clients transit ion and support susta inable, inclus ive growth in our markets. Sustainab il ity review 58 Standard Chartered – Annual Report 2024 Sustainab il ity is an area of strategic focus for Standard Chartered which we aim to integrate across our business. As a result, sustainab il ity informat ion can be found throughout this Annual Report and across the suite of sustainab il ity-related reports on our website as set out on this page. This Sustainab il ity review is designed to address the topics that could have a material (posit ive or negat ive) impact on society, nature or the climate, and that are not addressed elsewhere in the Annual Report. We describe how we have determined these topics under the Material ity heading on page 60. Content map of Annual Report sustainab il ity-related disclosures Page Strategic report Who we are and what we do 02-03 Stakeholders 35-41 Non-ﬁnancial and susta inab il ity informat ion statement 42 Taskforce on Climate-related Financ ial D isclosures (TCFD) reporting index 43-44 Sustainab il ity review Chief Sustainab il ity Ofﬁcer’s review 62 Our approach to sustainab il ity 63-68 Sustainable ﬁnance 69-73 Climate 74-89 Nature 90 Social impact 91-92 Environmental and Social Risk management 93-94 Integrity, conduct and ethics 95-97 Sustainab il ity-related governance 98-102 Directors’ report Corporate governance 113-142 Board engagement with our stakeholders 121-122 Board Culture and Sustainab il ity Committee 134-136 Sustainab il ity in remuneration 150-153 Employee polic ies and engagement 188-189 Health, safety and wellbeing 189-190 ESG disclosures 183 Streamlined Energy and Carbon Reporting (SECR) disclosure 183-184 Risk review and Capital review Climate Risk 256-269 Supplementary informat ion Supplementary people informat ion 388-392 Supplementary sustainab il ity informat ion 393-395 59 Standard Chartered – Annual Report 2024 Sustainab il ity review Our suite of sustainab il ity-related reports and disclosures Report or disclosure Descript ion Assurance and verif icat ion reports Independent assurance and verif icat ion reports by Ernst & Young LLP (EY), Global Documentation Ltd and EcoAct over certain data points with in th is Annual Report as detailed on page 61 Code of Conduct and Ethics Primary tool through which we communicate our conduct expectations. It is designed to guide colleagues through how to live our valued behaviours on a day-to-day basis, whatever their business, function, region, or role. Country-by-Country Disclosure Provides tax informat ion in accordance with the Capital Requirements (Country-by-Country-Reporting) Regulations 2013. Divers ity, Equal ity and Inclusion Impact Report Includes gender and ethnic ity pay gap assessment and the act ions we have taken to support a culture of inclus ion. Equator Princ iples report ing As a member since 2003, we report on how we apply the princ iples to ensure that the projects we ﬁnance and advise on are developed in a manner that is socially responsible and reﬂect sound environmental management practices. Environmental and Social Risk Management Framework Provides an overview of our approach to ident ify ing, assessing, and managing the environmental and social risks associated with our client relationsh ips. ESG data pack Supplementary Environmental, Social and Governance (ESG) and sustainab il ity data is provided in a spreadsheet format. ESG Reporting Index Alignment table referencing our disclosures using voluntary sustainab il ity reporting frameworks: Sustainab il ity Accounting Standards Board Standards, Global Reporting Init iat ive Standards and World Economic Forum (WEF) Stakeholder Capital ism Metr ics. Futuremakers Impact Report Provides progress and outcomes about Futuremakers, our global youth economic empowerment in it iat ive, tackl ing inequal ity and promot ing greater economic inclus ion. Modern Slavery Statement Sets out the steps we have taken to assess and manage the risk of modern slavery and human trafﬁcking in our operations and supply chain. Net zero methodological white paper – The journey continues Describes our approach to net zero, laying out the methodologies we have used to calculate our ﬁnanced and facil itated em iss ions, and sett ing our inter im 2030 targets at sector level. Net Zero Transit ion Plan Sets out how we aim to deliver on our commitments to reach net zero emiss ions in our ﬁnanced emiss ions by 2050, and in our Scope 1 and Scope 2 emiss ions by 2025. Polic ies We publish our main sustainab il ity-related polic ies, includ ing on: ant i-money laundering; anti-bribery and corruption; dig ital assets approach; d ivers ity and inclus ion; health, safety and secur ity; privacy; public policy engagement; and Speaking Up. Posit ion Statements and Prohib ited Act iv it ies We use our cross-sector and sector-specif ic Pos it ion Statements and Proh ib ited Act iv it ies list to assess whether to provide ﬁnanc ial serv ices to clients. PRB reporting and self- assessment Our disclosures on actions undertaken related to the six princ iples as deﬁned by the Un ited Nations Princ iples for Respons ible Banking (PRB). Supplier Charter Sets out princ iples for the behav ioural standard that we expect from our suppliers, and those with in a supplier’s sphere of inﬂuence that assist them in performing their obligat ions to us. Sustainable Finance Impact Report We present the impact of our sustainable ﬁnance assets on a portfolio basis. Sustainable Finance Frameworks Our Green and Sustainable Product Framework (GSPF) and Sustainab il ity Bond Framework (SBF) outline our deﬁnit ion of green and sustainable ﬁnance. Our Transit ion F inance Framework (TFF) sets out the activ it ies and entit ies that we cons ider elig ible for trans it ion ﬁnance. To access the Group’s suite of sustainab il ity-related reports and disclosures vis it sc.com/sustainab il ityl ibrary Our approach to sustainab il ity reporting The Group includes ESG and sustainab il ity informat ion in this Annual Report, provid ing investors and stakeholders with an understanding of the impl icat ions of relevant sustainab il ity- related risks and opportunit ies, and progress aga inst our objectives. We have cons idered our ESG reporting obligat ions under the Hong Kong and FCA UK List ing Rules, please refer to our Directors’ report on page 103 for further informat ion. For our TCFD content table please refer to pages 43-44. We have used the GRI Standards to guide our disclosures and have published an ESG Reporting Index with reference to disclosures captured in the GRI Universal and select Topic Standards. We have also considered relevant metrics from sector-specif ic SASB Standards and WEF Stakeholder Capital ism Metr ics. Our approach to sustainab il ity reporting will continue to evolve subject to regulatory and voluntary standards across our list ing locat ions and footprint markets. Our disclosures are guided by internat ional standards, frameworks and pr inc iples to the extent relevant to our business. We are actively preparing for future reporting obligat ions across the var ious jurisd ict ions in which we operate, includ ing report ing under the International Sustainab il ity Standards Board (ISSB)’s IFRS S1 General Requirements of Sustainab il ity-related Financ ial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2) and the EU Corporate Sustainab il ity Reporting Direct ive (CSRD). See our ESG Reporting Index at sc.com/sustainab il ityl ibrary 60 Standard Chartered – Annual Report 2024 Sustainab il ity review Material ity In preparing these disclosures, we have followed the material ity assessment process outl ined in GRI 3: Material Topics 2021, which provides step-by-step guidance for organisat ions on how to determ ine material topics. Material topics are topics that represent an organisat ion’s most sign iﬁcant impacts on the economy, environment and people, includ ing impacts on their human rights – both posit ive and negat ive. In doing so, we have taken steps to understand the Group’s context, ident ify actual and potent ial impacts, assess the sign iﬁcance of the impacts and prior it ise the most sign iﬁcant impacts for reporting. We have done this by engaging with relevant internal and external stakeholders and by validat ing the material topics with experts across the Chief Sustainab il ity Ofﬁce. Our material topics are set out in the table below. Topics Descript ion Learn more Sustainable ﬁnance How we ident ify opportun it ies for dr iv ing pos it ive environmental and social impact by helping our clients address environmental and social challenges, transit ion towards low carbon economies and achieve sustainable growth. Sustainable ﬁnance Pages 69-73 Climate The posit ive and negat ive impacts of our ﬁnanc ing activ it ies, direct operations and supply chain on the climate. This includes our emiss ions, phys ical and transit ion cl imate risk management, and progress against our net zero roadmap. Climate Pages 74-89 Nature The posit ive and negat ive nature-related impacts of our ﬁnancing act iv it ies, direct operations, and supply chain. This includes our approach and progress against our nature-related ambit ions. Nature Page 90 Human capital management The practices used for recruit ing, develop ing and optim is ing employee output and relationsh ips, across the value chain. This includes human rights and modern slavery, health and safety (includ ing physical and mental wellbeing) and divers ity, equ ity and inclus ion. Stakeholders Pages 38-41 Supplementary people informat ion Pages 388-392 Society and community relations The posit ive and negat ive impacts of our ﬁnanc ing activ it ies on the societ ies and commun it ies around us. This includes ﬁnanc ial inclus ion, job creation, vulnerable customer protection, and charitable giv ing. Social impact Pages 91-92 Data security and privacy The protection practices over client and personal informat ion held by the Group. Risk review and Capital review Page 204 Corporate governance Governance structures and internal control processes by which the Group is directed. Includes risk management, business conduct, anti-bribery and corruption, anti-money laundering, and whistleblower protection. Managing environmental and social risk Pages 93-94 Integrity, conduct and ethics Pages 95-97 Sustainab il ity-related governance Pages 98-102 To learn more about our material ity process and how we engage w ith stakeholders vis it sc.com/sustainab il itystakeholders 61 Standard Chartered – Annual Report 2024 Sustainab il ity review Reporting period The reporting period for the major ity of our operat ional environmental performance ind icators, includ ing greenhouse gas (GHG) emiss ions, waste generat ion and water consumption is from 1 October 2023 to 30 September 2024. This allows sufﬁc ient t ime for independent third-party assurance to be completed and for obtain ing external th ird party data where needed prior to the publicat ion of the Group’s Annual Report. This only differs for the following Scope 3 emiss ions where a period of 1 January to 31 December with a one to two-year lag is used: Category 1: Purchased Goods (other); Category 2: Capital goods; Category 4: Upstream transportation and distr ibut ion; Category 6: Business travel (miscellaneous other than air travel) and Category 15: Investments. Emiss ions data for these categories is disclosed on a one to two-year lag with emiss ions reported in 2024 based on the availab il ity of third-party data and client data. This year, the reporting period for Category 6: Business travel (air travel) has been adjusted from a 1 October 2023 to 30 September 2024 period, to a 1 January 2023 to 31 December 2023 period, to align these emiss ions w ith those in Category 6: Business travel (miscellaneous other than air travel). With the exception of sustainable ﬁnance income, sustainable ﬁnance metrics are reported at 30 September 2024, allowing sufﬁcient t ime to complete reporting. Sustainable ﬁnance income is reported for the full ﬁnanc ial per iod from 1 January 2024 to 31 December 2024. The reporting period for all other sustainab il ity informat ion in this Annual Report is from 1 January 2024 to 31 December 2024 to align with the calendar year used in ﬁnanc ial report ing. Independent Lim ited Assurance Ernst & Young LLP (EY) was appointed to provide independent lim ited assurance over certa in data points with in th is Annual Report, ind icated w ith a caret symbol (^) in this report. The assurance engagement was planned and performed in accordance with the International Standard on Assurance Engagements (UK) 3000 (July 2020), Assurance Engagements Other Than Audits or Reviews of Histor ical Financ ial Informat ion (ISAE (UK) 3000 (July 2020)). This independent assurance report is separate from EY’s audit report on the ﬁnancial statements and is available at sc.com/sustainab il ityl ibrary . This report includes further detail on the scope, respective responsib il it ies, work performed, lim itat ions and conclusions. We obtained independent lim ited assurance on the Group’s Scope 1 and 2 GHG emiss ions and Scope 3 data centres GHG emiss ions by Global Documentat ion Ltd. We also obtained independent verif icat ion of the Group’s Scope 3 emiss ions associated with business travel (air travel) from EcoAct. These verif icat ions were conducted in accordance with the ISO 14064-3 Greenhouse gases standard and are also available at sc.com/sustainab il ityl ibrary . For further details on assurance obtained on comparative prior year data, please refer to the prior year annual report. Read more about the princ iples and methodology for measur ing our environment data at sc.com/environmentcriter ia For further informat ion on our em iss ions calculat ion methodology, please refer to the Group’s ‘Net zero methodological white paper – The journey continues’ via sc.com/sustainab il ityl ibrary Discla imer We report on ESG matters throughout this Annual Report, in particular in the following sections: (i) Strategic report on pages 35 to 44 ; (i i) Directors’ report on pages 183 to 184 ; (i i i) Sustainab il ity review on pages 57 to 102 ; (iv) Risk review and Capital review on pages 256 to 269 ; and (v) Supplementary sustainab il ity informat ion on pages 393 to 395 . In this ‘Sustainab il ity review’ chapter, we set out our approach and progress relating to sustainab il ity and its content is subject to the statements included in (i) the ‘Forward-looking statements’ section; and (i i) the ‘Bas is of preparation and caution regarding data lim itat ions’ section provided under ‘Important notices’ on pages 397-398 . Addit ional informat ion can be accessed through our su ite of supporting sustainab il ity reports and disclosures via our website www.sc.com/sustainab il ityl ibrary 62 Standard Chartered – Annual Report 2024 Sustainab il ity review The opportunity to ﬁnance the transit ion to a low carbon economy is more compelling and crucial than ever. The commercial case continues to grow, with the green economy deliver ing total returns of 198 per cent over the past 10 years 1 . The scope for further sustainable ﬁnance growth is sign iﬁcant as new technologies come online and as renewable capacity growth continues to outpace that of fossil fuels 2 . At the same time, the urgency of the transit ion rema ins stark and this year we breached the 1.5°C threshold for the ﬁrst time, making 2024 the warmest year on record. The disproport ionate impact of climate change on those least equipped to respond, notably across our markets in Asia, Africa and the Middle East, underscores the importance of our ongoing commitment to capital mobil isat ion at scale to deliver the sustainable outcomes we need to see, alongside inclus ive growth. The Chief Sustainab il ity Ofﬁcer (CSO) organisat ion was established in 2022 to build on the Group’s long-standing sustainab il ity agenda. Since its creation, we have made substantial progress on our Sustainab il ity Strategic Pillars, which represent our near-term strategic focus. This includes the work we do to scale sustainable ﬁnance, to embed sustainab il ity across the organisat ion, del iver against our net zero roadmap, and leverage our thematic Innovation Hubs. Our sustainable ﬁnance income growth speaks to this progress, with $982 mill ion of susta inable ﬁnance income generated this year, meaning that we are on track to deliver against our target of at least $1 bill ion in annual sustainable ﬁnance income by 2025. As we scale, we continue to divers ify our sustainable ﬁnance revenue mix by increas ing the penetration of our core sustainable ﬁnance products across markets and expanding our product offering suite. Alongside this, we have now mobil ised $121 b ill ion in sustainable ﬁnance for our clients from January 2021, against our commitment to mobil ise $300 b ill ion in sustainable ﬁnance by 2030. Internally, we continue to embed sustainab il ity across our organisat ion by upsk ill ing and empower ing colleagues with user-friendly tools, train ing and streaml ined processes, all aimed at facil itat ing the adoption of sustainab il ity opportunit ies and manag ing sustainab il ity risks throughout the Group. While externally, our Innovation Hubs across Adaptation Finance, Blended Finance Programmes, Carbon Markets and Nature Finance, continue to pioneer novel, high-vis ib il ity transact ions, invest ing and support ing landmark projects that offer sign iﬁcant potent ial for scale. This year we continued to deliver against our Net Zero Roadmap, completing our ﬁnal baseline and target setting for the 12 highest-emitt ing sectors. But we also recogn ise that achiev ing our net zero by 2050 target requ ires active collaboration and engagement with our clients to support and accelerate their transit ion, and have therefore publ ished our inaugural Transit ion Plan alongs ide this Annual Report. This year we also sought to further expand our understanding of our own nature-related risks and opportunit ies, becom ing an early adopter of the Taskforce on Nature-related Financ ial Disclosures (TNFD). Build ing on our amb it ion to sh ift ﬁnanc ial ﬂows towards nature-posit ive outcomes, Standard Chartered also partnered with The Government of The Bahamas, The Nature Conservancy, the Inter-American Development Bank (IDB), and other ﬁnancial partners to launch an innovat ive debt conversion, expected to generate $124 mill ion for marine conservation. Looking ahead to 2025, we will no doubt face challenges as the sustainab il ity landscape develops and as we further operational ise our amb it ions. However, we’re steadfast in our focus to deliver on our commitments, and our CSO team will continue to serve as a centre of excellence to support the Group in deliver ing on our Susta inab il ity agenda, helping our clients to transit ion, and support ing sustainable, inclus ive growth in our markets. The progress detailed in this report reﬂects not just our achievements to date, but our determinat ion to help dr ive posit ive change in the years ahead. Chief Sustainab il ity Ofﬁcer’s review 1 ‘Investing in the green economy 2024’, London Stock Exchange Group 2 ‘World Energy Investment 2024’, International Energy Agency “Accelerating posit ive change in the years ahead” Marisa Drew Chief Sustainab il ity Ofﬁcer 63 Standard Chartered – Annual Report 2024 Sustainab il ity review Our approach to sustainab il ity Sustainab il ity is a strategic focus area for us, as we strive to promote inclus ive growth and prosperity across the markets where we operate. Our approach to sustainab il ity supports the Group’s strategy, which is designed to deliver our Purpose: to drive commerce and prosperity through our unique divers ity. This is underpinned by our brand promise, here for good. Our approach is articulated through our long-term sustainab il ity goals – our Sustainab il ity Aspirat ions – and our short-term sustainab il ity targets – our Sustainab il ity Strategic Pillars. The Aspirat ions and P illars set out how we intend to deliver across our Sustainab il ity agenda. Sustainab il ity continues to be included in the 2024 Group scorecard and 2024–26 Long-Term Incentive Plan (LTIP) with performance measures that align with our Sustainab il ity Aspirat ions and Susta inab il ity Strategic Pillars. This section sets out progress against our Sustainab il ity Aspirat ions and Susta inab il ity Strategic Pillars before we dive deeper into the material topics set out on page 60, includ ing sustainable ﬁnance, climate, nature and social impact. 2024 highl ights $121bn Cumulative mobil isat ion of sustainable ﬁnance from January 2021 to September 2024 against our commitment to mobil ise $300 bill ion by 2030 $982m ^ Income generated from sustainable ﬁnance in 2024 against our target of at least $1 bill ion annual income by 2025 Net Zero Interim targets set against our 12 highest-emitt ing sectors in line with Net Zero Banking Alliance (NZBA) guidance Became early adopters of the Taskforce on Nature-related Financ ial D isclosures (TNFD) Set an absolute facil itated em iss ions target for oil and gas, which currently makes up the majority of em iss ions with in our fac il itat ion portfolio Published our ﬁrst Transit ion Plan Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. Net zero progress has also been assured. This can be found on pages 74-89. The assurance report is available at sc.com/sustainab il ityl ibrary 64 Standard Chartered – Annual Report 2024 Sustainab il ity review Sustainab il ity Aspirat ions: our long-term goals 1 We deﬁne mobil isat ion of sustainable ﬁnance as any investment or ﬁnanc ial serv ice provided to clients that supports: (i) the preservation and/or improvement of biod ivers ity, nature or the environment; (i i) the long-term avo idance/decrease of GHG emiss ions, includ ing the al ignment of a client’s business and operations with a 1.5°C trajectory (known as transit ion ﬁnance); ( i i i) a social purpose; or (iv) incent iv is ing our cl ients to meet their own sustainab il ity object ives (known as sustainab il ity-linked ﬁnance). It is a measure of total capital mobil ised and cons iders the total value being committed facil it ies provided 2 A full list of our memberships can be found at sc.com/sustainab il itystakeholders 3 Decent jobs/employment: comprises formal employment and self-employment. ‘Decent’ aligns with the International Labour Organizat ion (ILO) deﬁnit ion, but in recognit ion of the challenges in many markets to satisfy every criter ia for ‘decent’, our Futuremakers in it iat ive counts those part ic ipants who have met m in imum wage plus at least two addit ional ILO cr iter ia. The data includes 7,425 young female partic ipants in sustained decent employment, where partic ipants rema in in decent employment six months post intervent ion, and 13,250 d irect jobs enabled to support microbus inesses. Th is comprises paid employment opportunit ies (direct employees, active associates, contractors, support/gig workers, and the entrepreneurs themselves) directly created by the supported microbus inesses. These may be part-time or full-time, with each job accounted for as a single unit. This KPI is based on actual data collated from project alumni over the seven year period, estimates based on empir ical research, and ex-post project evaluat ions For detailed progress against all our Aspirat ion targets see pages 393-395 Our Sustainab il ity Aspirat ions are consol idated into four overarching long-term goals, each supported by key performance ind icators (KPIs). Together, these reﬂect our comm itment to fostering sustainable social and economic development in our markets. Progress to date Sustainab il ity Aspirat ion Aspirat ion 1: Mobil ise $300 bill ion of sustainable ﬁnance 1 We believe sustainable ﬁnance is essential in addressing the sign iﬁcant social and environmental challenges faced by our markets. It has the potential to support the needs of businesses, people and communit ies, by enabling the transit ion to low-carbon technolog ies, accelerating ﬁnanc ial inclus ion, and promot ing sustainable, inclus ive econom ic growth. Our sustainable ﬁnance product suite includes bonds, loans, advisory and trade ﬁnance, and is underpinned by our sustainable ﬁnance frameworks, which outline how we apply the ‘green’, ‘social’, ‘sustainable’ or ‘transit ion’ labels across products and transactions. $121bn cumulative mobil isat ion of sustainable ﬁnance from January 2021 to September 2024 against our commitment to mobil ise $300 b ill ion by 2030 Published our inaugural Transit ion Plan detail ing our approach aim ing to ach ieve net zero by 2050 Aspirat ion 2: Operational ise our inter im 2030 ﬁnanced emiss ions targets to meet our 2050 net zero ambit ion We aim to reach net zero in our ﬁnanced emiss ions by 2050. The Group has set and disclosed ﬁnanced emiss ions reduct ion targets for 2030 across our 12 highest-emitt ing sectors, includ ing a fac il itated em iss ions target for o il and gas, which currently makes up the major ity of em iss ions w ith in our facil itat ion portfolio. We also believe that while target-setting is crucial, we need a clear plan to transit ion our bus iness. This can be found in our 2025 Transit ion Plan, wh ich outlines a comprehensive framework on how we intend to transit ion our business and operations, and collaborate with our clients with the aim to deliver on our inter im 2030 targets and ult imate 2050 net zero ambit ion. We recognise the challenges posed by a material portion of our markets that have yet to commit to net zero by 2050, but we remain focused on driv ing progress. Launched the Guide for Adaptation and Resil ience F inance in partnership with KPMG and the United Nations Ofﬁce for Disaster Risk Reduction (UNDRR) Aspirat ion 3: Enhance and deepen the sustainab il ity ecosystem We continue to util ise our exper ience and network to actively contribute to key global partnerships and in it iat ives that del iver different iated impact and help to mature and advance the sustainab il ity ecosystem. For example, we continue to mainta in gu id ing roles in the Glasgow Financ ial All iance for Net Zero (GFANZ), the UN Global Alliance of Investors for Sustainable Development (GISD), and the Integrity Council for the Voluntary Carbon Market (ICVCM), among others.² Through innovat ive frameworks and impactful in it iat ives, we have act ively sought to support global efforts to advance and unlock capital ﬂows towards crit ical areas such as adaptat ion and resil ience, nature, carbon solut ions and sustainable ﬁnance. 20,675 decent jobs enabled and supported in 2024 3 Aspirat ion 4: Drive social impact with our clients and communit ies We seek to accelerate the mobil isat ion of both private and philanthrop ic capital to address crit ical soc ial challenges in our footprint markets. By leveraging our ﬁnanc ial expert ise, product innovat ion, and strateg ic partnerships, we deliver solutions that meet immed iate needs wh ile empowering communit ies for susta inable growth. Through Futuremakers, we establish strategic collaborations with clients, NGOs and communit ies to mob il ise soc ial capital, create an inclus ive ecosystem to drive inclus ive econom ies and increase equitable prosperity. For more informat ion, see pages 91-92. 65 Standard Chartered – Annual Report 2024 Sustainab il ity review Sustainab il ity Strategic Pillars: our short- term targets and immed iate pr ior it ies Our four Sustainab il ity Strategic Pillars represent our near-term strategic focus designed to drive momentum and accelerate progress towards our longer-term Sustainab il ity Aspirat ions. Progress to date Sustainab il ity Pillar Pillar 1: Scale sustainable ﬁnance income 1 Growth and innovat ion in our sustainable ﬁnance franchise is crit ical to the delivery of the Group’s Net Zero Roadmap and to support our clients on their own transit ion journeys. Our susta inable ﬁnance teams develop customised solutions that speak to clients’ needs and ambit ions. The Group’s sustainable ﬁnance product suite is set out with in our GSPF, as described on page 73. Our sustainable ﬁnance income target is a CIB target, based on income generated from transactions util is ing sustainable ﬁnance products for our clients and income generated from clients whose activ it ies align with those in our Sustainable Finance Frameworks. $982m^ sustainable ﬁnance income generated in 2024 against our target of at least $1 bill ion annual income by 2025 2 3,825 clients evaluated through Climate Risk Assessments, and 1,449 client Environmental and Social Risk Assessment reviews completed Pillar 2: Further embed sustainab il ity across the organisat ion The CSO organisat ion a ims to act as a catalyst for change and a centre of excellence. We foster collaboration internally to embed sustainab il ity across our business operations and functions. We collaborate externally with clients and other stakeholders who are aligned with our miss ion to dr ive change. We aim to create a self-reinforc ing cycle, wh ich is built on established processes, clear frameworks, engagement with our clients and collaboration across risk and business teams. Our aim is to work with our clients to support their transit ion and decarbon isat ion journeys and where cl ients evidence transit ion, help to accelerate progress. 12 out of 12 of the NZBA high-emitt ing sectors covered by 2030 science-based ﬁnanced emiss ions targets Pillar 3: Deliver on the annual milestones set forth in our net zero roadmap We aim to reach net zero in our ﬁnanced emiss ions by 2050 and in our own operations by 2025. We focus on three areas to reduce emiss ions: our operat ions, our supply chain and ﬁnanced emiss ions assoc iated with our clients. The major ity of our GHG emiss ions are l inked to our lending activ it ies. As such, we prior it ised our measurement and decarbonisat ion efforts in the highest-emitt ing and most carbon-intens ive sectors of our portfol io. We have now completed our ﬁnanced emiss ions target-sett ing for our 12 highest-emitt ing sectors. We have further set a fac il itated em iss ions baseline and target for the oil and gas sector which currently makes up the majority of em iss ions w ith in our fac il itat ion portfolio. Four transactions executed in 2024 aligned to the Group’s sustainab il ity themed Innovation Hubs Pillar 4: Leverage our Innovation Hubs Our four thematic Innovation Hubs – Adaptation Finance, Blended Finance Programmes, Carbon Markets and Nature Finance – focus on emerging sustainab il ity themes that are nascent but ripe for scale. The Hubs drive innovat ion in the market across sustainab il ity. In 2024, we executed on four transactions aligned to the themes of the Hubs. Through our Nature Finance Hub, we executed a debt-for-nature swap mandate for The Bahamas, with savings earmarked for conservation. Our Carbon Hub launched a commercial banking facil ity to support forward carbon purchases for Brit ish A irways. 1 Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. The report is available at sc.com/sustainab il ityl ibrary. 2 Refers to our goal to reach $1 bill ion in Sustainable ﬁnance income by the end of 2025 66 Standard Chartered – Annual Report 2024 Sustainab il ity review Innovation Hubs Announced in 2023, our four thematic Innovation Hubs – Adaptation Finance 1 , Blended Finance Programmes 2 , Carbon Markets and Nature Finance – focus on emerging sustainab il ity themes that are nascent but ripe for scale, aligned to areas where the Group has a core competency, and are particularly suited to clients in our footprint markets. Context Across our markets, there is an urgent need to unlock and scale public and private climate adaptation ﬁnance to build shared societal resil ience. Th is means embedding adaptation and resil ience into ﬁnanc ial dec is ion-mak ing to manage risks and ident ify new opportun it ies, wh ich is crit ical g iven that every $1 spent on adaptation this decade could generate up to $12 of economic beneﬁt 3 . Adaptation represents both a risk and an opportunity for the Group, its clients and communit ies. We are work ing to ident ify and scale the adaptation ﬁnance opportunity across our business and to support the development of adaptation ﬁnance across the wider market. Progress In 2024, Standard Chartered, KPMG and the UNDRR – with contribut ions from more than 30 add it ional organ isat ions – developed and published the Guide for Adaptation and Resil ience Finance (The Guide). The Guide now supports the market in ident ify ing adaptation opportunit ies, by sett ing out elig ible ﬁnanceable activ it ies and guidance on what constitutes adaptation and resil ience investment, alongside a practical roadmap for ﬁnancing and investment opportunit ies. We also completed the Group’s ﬁrst adaptation ﬁnance transaction – an adaptation letter of credit with a parametric insurance provider, which provided ﬁnanc ial protect ion for businesses in the renewable energy sector against extreme weather such as changes in river levels and wind levels. Standard Chartered is also co-chair of the UK Climate Financ ial Risk Forum Adaptation working group. Through this forum and others, the Group will continue to engage the ﬁnanc ial ecosystem to seek opportunit ies for adaptat ion and resil ience in Asia, Africa and the Middle East. Standard Chartered is ranked 1st in Climate X’s ranking of the world’s top 50 banks for climate adaptation 4 . For more on Adaptation Finance see our • Adaptation Economy Report via sc.com/en/campaigns/adaptation-economy/ • Guide for Adaptation and Resil ience F inance via sc.com/en/adaptation-resil ience-ﬁnance-gu ide/ • Read our research on the Adaptation Economy here: sc.com/en/campaigns/adaption-economy/ 1. Adaptation Finance About the Innovation Hubs Blended Finance Programmes Adaptation Finance Nature Finance Carbon Markets Innovation Hubs Our Innovation Hub model 1 Adaptation and resil ience ﬁnance: Adaptat ion and resil ience ﬁnance is considered to be any ﬁnanc ial serv ice which is provided to an entity to enable adaptation and enhance resil ience to cl imate and non-climate-related natural hazards with in that ent ity’s assets, operations, customers, supply chain, or the communit ies in which they operate. 2 Blended Finance is the use of catalytic public (and/or philanthrop ic) cap ital to increase private sector investment that supports the SDGs 3 Read our research on the Adaptation Economy here: sc.com/en/campaigns/adaption-economy/ 4 Based on 17 ind icators as descr ibed Climate X’s 2024 white paper ‘Top 50 Banks in the World Tackling Adaptation’ Each Hub is transversal, run by senior leaders in the CSO organisat ion, and a ims to ident ify opportun it ies for future returns outside of our core range of tradit ional products and serv ices. By being deliberate in demonstrating leadership to advance the ecosystem in these emerging thematic areas, the Group expects to be well-posit ioned to take advantage of the sign iﬁcant and d ifferent iated revenue potent ial that will result from maturation of these themes in the future. 67 Standard Chartered – Annual Report 2024 Sustainab il ity review Context As we move closer to crit ical 2030 cl imate and sustainab il ity targets, the need for blended ﬁnance to ﬁll ﬁnancing gaps becomes even more pressing. However, blended ﬁnance deals largely continue to be ‘bespoke’ to each situat ion, wh ich lim its their scalabil ity. Standard Chartered is already recognised by Convergence (the global network for blended ﬁnance) as among the most active commercial banks in the blended ﬁnance space, and we are well posit ioned to play a leadersh ip role in this area given our footprint across Asia, Africa and the Middle East. We are working to address the issue of scalabil ity by ident ify ing, creating and implement ing blended ﬁnance through a more programmatic approach: working through partnerships with Development Finance Institut ions (DFIs) and Mult ilateral Development Banks (MDBs) as well as with in country platforms. We describe this approach more fully in our article ‘Country Platforms: A programmatic approach to blended ﬁnance ’1 . Progress The Group has sought to establish both partnerships and platforms throughout the year. We continue our partic ipat ion, as a signatory, in the Just Energy Transit ion Partnersh ips (JETPs) in Indonesia and Vietnam, working with our clients to translate polit ical investment plans into project ﬁnanc ing. In addit ion, at COP29 th is year, the Kingdom of Lesotho announced its intent ion to appo int Standard Chartered and Standard Bank South Africa as jo int ﬁnancial adv isers, during the launch of the His Majesty King Letsie III Just Energy Transit ion Fund (HMKLIII JET Fund). The HMKLIII JET Fund aims to build a new era of energy independence and export in Lesotho: fulﬁll ing Lesotho’s domestic demand through build ing both local supply and surplus generation for export to neighbour ing Southern Afr ica. The HMKLIII JET Fund seeks to bring private investment to Lesotho through the country platform approach. Standard Chartered is also a founding partic ipant in the Bangladesh Climate and Development Platform, a country platform to leverage adaptation and mit igat ion investments. The country platform concept was ﬁrst advanced by the World Bank in 2017, moving beyond just single projects, and is designed to foster collaboration among development partners based on a shared vis ion. We also contributed to a number of global in it iat ives (e.g. w ith in GFANZ and WEF) to help drive thought leadership around blended ﬁnance. 2. Blended Finance Programmes Context Effective carbon markets are crit ical to global efforts to m it igate climate change and to ﬁnance sustainable development. This was stressed by the UN Intergovernmental Panel on Climate Change in its April 2022 report on mit igat ing climate change, which noted that “the deployment of carbon diox ide markets to counterbalance hard-to-abate residual emiss ions is unavoidable if net zero emiss ions are to be ach ieved”. Carbon markets put a price on carbon emiss ions, can be complementary to credible net zero transit ion plans, and help to channel climate ﬁnance where it’s needed, most crit ically across our markets. A high-integr ity carbon market, comb ined with corporate commitments to cut emiss ions and h igh standards of reporting can accelerate the global progress towards net zero by 2050, while supporting sustainable development globally. The Group has been a ﬁrm advocate of carbon market standardisat ion and has been at the forefront of several in it iat ives that are working to ensure that high-integr ity, scalable carbon markets develop. We offer trading, advisory, ﬁnanc ing and r isk management services to our clients around the world and continue to develop our suite of banking solutions as carbon markets grow and mature. Progress In 2024, we bolstered our support of carbon market development to provide innovat ive carbon ﬁnancing solut ions. Standard Chartered partnered with Brit ish A irways, CFC Insurance, Cur8, Will is Towers Watson, and UNDO to p ilot an innovat ive bank loan against a carbon removal credits offtake contract. The transaction featured a purpose-built carbon insurance policy, allowing for the upfront monetisat ion of an ex ist ing long-term carbon offtake agreement. We have been working on broadening our ﬁnanc ing capab il it ies to be able to apply sim ilar solut ions to other carbon project types and to support addit ional sources of debt such as outcome bonds and securit isat ion of carbon portfolios. We continue to support the ICVCM review process for both carbon standards and methodologies and, in the past year, have been involved in some of the largest carbon market transactions, includ ing act ing as a supplier for the Regional Voluntary Carbon Market Company and Climate Impact X’s respective carbon credit auctions. 3. Carbon Markets 1 Available at sc.com/deliver ing-blended-ﬁnance 68 Standard Chartered – Annual Report 2024 Sustainab il ity review Debt conversion for nature for The Bahamas Standard Chartered acted as the sole lender in this transaction, underwrit ing a new $300 m ill ion loan. The loan was backed by guarantees from IDB, Builders Vis ion (an impact platform founded by Lukas Walton) and AXA XL (a special ist insurer). The Nature Conservancy was responsible for mobil is ing the guarantee package for the transaction and will also provide long-term conservation support to The Bahamas Government. Through the new loan, The Bahamas bought back $300 mill ion of its external commercial debt, generating $124 mill ion in savings which will be dedicated to marine conservation in The Bahamas. The debt savings will support The Bahamas to effectively manage its unique system of almost 6.8 mill ion hectares of Mar ine Protected Areas (MPAs), complete a national Mangrove Management Plan and develop and implement a Marine Spatial Plan aimed at addressing increased demands for the use of The Bahamas’ ocean through a transparent, partic ipatory, and sc ience-based process. The Bahamas debt conversion project thus not only helps to free up ﬁscal space by reducing debt service payments, but also helps to support sovereign sustainable development prior it ies – conserving and managing marine areas to provide the crit ical hab itats for diverse species, protect coasts from storms and sustain local livel ihoods. The project is also one of many ﬁrsts: • Our ﬁrst debt conversion for nature. • First time a family ofﬁce has provided a meaningful component of the credit enhancement package, with Builders Vis ion prov id ing a $70 m ill ion co-guarantee. • First time a private insurer has provided credit insurance alongside a Multilateral Development Bank in support of a sustainable issuance for nature and climate, with AXA XL provid ing $30 m ill ion in credit insurance. • First time that climate-smart MPA commitments – which include considerat ions for manag ing potential climate change impacts – are explic itly included in conservation outcomes to support climate mit igat ion and adaptation goals. More informat ion about the debt convers ion for nature for the Bahamas is available at sc.com/en/campaigns/ bahamas-debt-for-nature Context It is estimated that over half of global GDP is moderately or highly dependent upon nature. The 2019 Global Assessment Report from the Intergovernmental Science-Policy Platform on Biod ivers ity and Ecosystem Services highl ighted how b iod ivers ity loss undermines livel ihoods, food secur ity, economies and health, while also threatening the resil ience of our planet to cl imate change. Despite its importance, nature is rapidly declin ing. An est imated 25 per cent of plants and animals are threatened with extinct ion, amid a 47 per cent decline in natural ecosystem extent and condit ion relat ive to earliest estimated states. 1 Protecting nature is essential to lim it ing anthropogenic global warming and mit igat ing its impacts so that the planet can sustain all livel ihoods and support inclus ive susta inable economic development. Having applied internat ional env ironmental and social standards in our ﬁnanc ing for more than 20 years, our presence in markets with some of the richest, remain ing b iod ivers ity in the world posit ions us to engage w ith a range of key stakeholders. We are guided by our commercial ambit ion to increas ingly sh ift ﬁnancial ﬂows towards nature-pos it ive outcomes by al ign ing and contribut ing to the targets of the Global B iod ivers ity Framework (GBF). Progress Standard Chartered has partnered with The Government of The Bahamas, The Nature Conservancy, IDB, and other ﬁnancial partners to launch an innovat ive debt convers ion for nature and climate, which aims to help the country improve ocean conservation and management. We have also expanded the Group’s GSPF in 2024 to include addit ional nature-related act iv it ies informed by the GBF. Namely, under the GSPF ‘Sustainable management of liv ing and natural resources’ category, we have expanded the criter ia to include a multitude of activ it ies that contribute to ecosystem and nature conservation, includ ing but not l im ited to: investment in restoration of degraded areas; in-situ conservation activ it ies around sustainable tourism areas, and investment in activ it ies that mit igate the impact of invas ive al ien species. With in the ‘Pollut ion prevention and control’ GSPF category, we have also recognised activ it ies that contribute to soil remediat ion, and waste prevent ion or reduction. Through our nature risk working group we are advancing our nature risk analysis by leveraging our climate risk data capabil it ies to support more in-depth analysis of potential material sectors and sites, and assess our ﬁnanc ial exposure to direct and ind irect pressures and dependenc ies on nature. To amplify Standard Chartered’s thought leadership in the nature sphere, we co-authored the Group’s latest sustainab il ity research ‘Towards a sustainable ocean: where there’s a will, there’s a wave’ 2 published in November 2024, highl ight ing opportunit ies for ﬁnancing the nature-pos it ive trans it ion of the blue economy. For more on progress made towards nature see page 90 4. Nature Finance 1 IPBES (2019) Global Assessment Report on Biod ivers ity and Ecosystem Services 2 Read our blue economy research paper ‘Towards a sustainable ocean: where there’s a will, there’s a wave’ at sc.com/blue-economy 69 Standard Chartered – Annual Report 2024 Sustainab il ity review Sustainable ﬁnance Sustainable ﬁnance, includ ing trans it ion ﬁnance, is a crucial part of our sustainab il ity strategy and is therefore reﬂected in both our long-term Sustainab il ity Aspirat ions and short-term Sustainab il ity Strategic Pillars. Sustainable ﬁnance mobil ised 1 Product Oct 2023 – Sep 2024¹¹ $m Jan 2021 – Sep 2023 $m Cumulative progress Jan 2021 – Sep 2024 $m Use of proceeds 2,3 7,510 18,989 26,499 Sustainab il ity-linked loans (SLLs) 3,4 9,529 28,638 38,167 Transit ion ﬁnance 3,5 1,023 762 1,785 SME lending 3,6 1,342 2,853 4,195 Microf inance 3,6 752 1,940 2,692 Green mortgages 3,7 245 4,822 5,067 Mergers and acquis it ions (M&A)/Advisory 8 2,926 5,786 8,712 Green and social bonds facil itated 9 10,220 23,423 33,643 Total sustainable ﬁnance mobil ised 10 33,547^ 87,213 120,760 Of the above Corporate &Investment Banking (CIB) 31,960 79,539 111,499 Wealth & Retail Banking (WRB) 1,587 7,674 9,261 Total sustainable ﬁnance mobil ised 10 33,547^ 87,213 120,760 Our broad sustainable ﬁnance product suite, which includes bonds, loans, advisory and trade ﬁnance, is underpinned by our sustainable ﬁnance frameworks (described on page 73) that outline how we apply the ‘green’, ‘social’, ‘sustainable’ or ‘transit ion’ labels across products and transact ions. We also work with retail and wealth clients to mobil ise d iverse sources of capital in support of social and environmental outcomes. Our aspirat ion is to mobil ise $300 b ill ion of sustainable ﬁnance. We have mobil ised $121 b ill ion of susta inable ﬁnance from January 2021 through to September 2024 against our commitment to mobil ise $300 b ill ion by 2030. 1 We deﬁne mobil isat ion of sustainable ﬁnance as any investment or ﬁnanc ial serv ice provided to clients that supports: (i) the preservation and/or improvement of biod ivers ity, nature or the environment; (i i) the long-term avo idance/decrease of GHG emiss ions, includ ing the al ignment of a client’s business and operations with a 1.5°C trajectory (known as transit ion ﬁnance); ( i i i) a social purpose; or (iv) incent iv is ing our cl ients to meet their own sustainab il ity object ives (known as sustainab il ity-linked ﬁnance). It is a measure of total capital mobil ised and cons iders the total value being committed facil it ies provided 2 Mobil isat ion amounts include transactions with restricted use of the ﬁnanc ing proceeds that al ign to our GSPF. Use of proceeds lending transactions are measured as the loan commitment/underwritten amount provided to the counterparty. Use of proceeds transactions to the value of $538 mill ion have been reclass if ied as SLLs in the 2023 year due to transaction tagging reﬁnement 3 Lending transactions are measured as the loan commitment/underwritten amount provided to the counterparty 4 SLLs refer to any type of loan instrument for which the economic characterist ics can vary depend ing on whether the counterparty achieves ambit ious, mater ial and quantif iable predeterm ined sustainab il ity performance targets (SPTs). The use of proceeds in relation to an SLL is not a determinant in its categorisat ion and, in most instances, SLLs will be used for general corporate purposes. SLLs are not issued in line with the Group’s GSPF but are subject to other internal guidance documentation, based on the Sustainab il ity Linked Loan Princ iples 5 Transit ion ﬁnance includes any ﬁnanc ial serv ice provided to clients to support them to align their business and/or operations with a 1.5°C trajectory issued in line with our TFF, this is measured on a committed facil ity prov ided basis 6 SME and Microf inance lend ing is the provis ion of ﬁnance to developed but not h igh-income countries as per the United Nations World Economic Situat ion and Prospects (UN WESP) report. The inclus ion of SME lend ing is linked to the ‘Access to Finance’ sub-theme with in the Group’s GSPF incorporating employment generation, and programmes designed to prevent and/or alleviate unemployment, includ ing through the potent ial effect of small and medium enterprise (SME) ﬁnancing and m icrof inance. SME mob il isat ion is the lending facil it ies provided to small companies and renewed when the facil it ies renew. Microf inance mobil isat ion is measured as the cash disbursed 7 Green Mortgages are loans issued by our Wealth & Retail Banking business (WRB) where the underlying property meets a specif ic energy rat ing. Mobil isat ion is measured as the cash disbursed to lenders. Value mobil ised in 2021 includes mortgages orig inated before 2021 but ident iﬁed as Green in 2021 8 M&A/Advisory represents where the Group is the ﬁnanc ial adv isor to a transaction which has been tagged as sustainable in line with the Group’s GSPF or TFF. The amount attributed to M&A/Advisory mobil isat ion is proportional and represents the total deal size div ided by the number of ﬁnancial adv isers on the deal 9 Capital market bonds are measured by the proportional bookrunner share of facil itated act iv it ies as determined by third-party league table rankings based on the level of services provided 10 Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. The report is available at sc.com/sustainab il ityl ibrary 11 Some transactions included in 2024 reporting related to deals that were signed during prior years but which only received approval for sustainable ﬁnance tagging during 2024 70 Standard Chartered – Annual Report 2024 Sustainab il ity review Scaling sustainable ﬁnance income Our sustainable ﬁnance franchise supports clients on their transit ion and broader susta inab il ity journeys by developing customised solutions that speak to their needs and ambit ions. The franchise generated over $982 mill ion between January and December 2024 putting us with in reach of our target of at least $1 bill ion annual income by 2025. This represents over 8.3 per cent of our total Corporate & Investment Banking income in 2024, a year-on-year growth rate of 36 per cent. As a UK-headquartered internat ional bank we work to deploy capital across our global markets. As can be seen on the following pages and in our 2024 Sustainable Finance Impact Report, we have raised $7.9 bill ion of susta inable liab il it ies across our markets, while 78 per cent of our $23.3 bill ion sustainable ﬁnance asset base is located in Asia, Africa and the Middle East. In 2024, we continued to develop our sustainable ﬁnance product suite, with over 40 product variants as set out in our GSPF. Co-developed with Morningstar Sustainalyt ics, a globally recognised provider of ESG research, ratings and data, our framework is reviewed annually to reﬂect changes in market trends and industry standards. Our pureplay clients are also key to achiev ing our susta inable ﬁnance goals. These are companies whose activ it ies align with those in our GSPF or in our TFF. Their sign iﬁcance l ies in their abil ity to del iver credible and robust impact, driven by the inherent green and socially sustainable nature of their business models and operations, or their crit ical role in supporting and/or enabling the transit ion. Our sustainable ﬁnance income 1 includes client income generated from our sustainable ﬁnance product suite net of funding costs, as well as from clients recognised as green, social, sustainable or transit ion pureplays. Read more in our Sustainable Finance Impact Report at sc.com/sﬁmpactreport Sustainable ﬁnance income 2 Product 2024 3 $m 2023 $m YOY % Transaction services 319 202 58 Payments & Liqu id ity 187 103 82 Securit ies & Pr ime Services 4 – 400 Trade & Working Capital 128 99 29 Banking 552 427 29 Lending and ﬁnanc ing solut ions 507 386 31 Capital market and advisory 45 41 10 Markets 111 91 22 Macro Trading 101 76 33 Credit Trading 10 15 (33) Total sustainable ﬁnance income by product 982^ 720 36 Our target to generate at least $1 bill ion annual sustainable ﬁnance income by 2025 We generated $982 mill ion^ of susta inable ﬁnance income in 2024, putting us with in reach of our target. 1 For derivat ive transact ions included with in our susta inable ﬁnance income, these reﬂect the client income related to transactions, which includes margins charged in excess of hedging costs 2 Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. The report is available at sc.com/sustainab il ityl ibrary 3 Product allocations have changed to align to the new business structure with in CIB 71 Standard Chartered – Annual Report 2024 Sustainab il ity review Sustainable ﬁnance assets and sustainab il ity-linked assets Our sustainable ﬁnance assets reﬂect the assets on our balance sheet generated as a result of this green, social and sustainable ﬁnancing act iv ity, and it is against these assets that we raise sustainable liab il it ies. Trans it ion assets are not included with in th is asset base. The Group’s sustainable ﬁnance asset base increased by 32 per cent to $23.3 bill ion between October 2023 and September 2024. The majority of our susta inable ﬁnance asset base ($17.4 bill ion of the $23.3 b ill ion) is made up of ﬁnanc ing to green projects such as renewable energy projects, green real estate and funding for the development of electric rail projects. Our social ﬁnance assets make up $5.5 bill ion of the total susta inable ﬁnance asset pool and encompass categories such as healthcare, education and access to ﬁnance in developing markets. The remain ing assets ($0.4 b ill ion of the $23.3 b ill ion) span across both green and social categories, includ ing renewable energy, susta inable water and wastewater management, access to essential services and food security. Green ﬁnance assets 1,2 Theme Sept 2024 $m Sept 2023 $m SDGs Clean transportation 1,929 901 Electric vehicles (EVs) 710 197 EV battery manufacturers 622 372 Manufacturing of special ised component parts of EVs 147 112 Rail 450 220 Climate change adaptation 3 4 Energy efﬁciency 141 482 LED light ing 92 7 Modernisat ion of broadband network 46 475 Smart meters 3 – Eco-efﬁcient products 37 – Green build ings 8,816 8,742 Green build ings 5,554 5,066 Mortgage portfolio Hong Kong 3,225 3,657 Mortgage portfolio Singapore 16 – Mortgage portfolio Taiwan 20 19 Mortgage portfolio Vietnam 1 – Pollution prevention and control 157 14 Portfolio of green projects 436 351 Multiple Renewable energy 5,498 3,100 Transmiss ion l ines 174 102 Hybrid wind and solar 528 38 Hydropower 24 32 Manufacture of components for renewable energy technology 954 457 Solar 1,618 940 Waste to energy 239 166 Wind 1,534 1,178 Energy storage 130 68 Green hydrogen 19 9 Mixed renewables 278 110 Sustainable management of liv ing and natural resources 249 – Sustainable water and wastewater management 127 – Total green assets 17,393 13,594 Portfolio of green and social projects³ 392 473 Multiple 1 Amounts included in the table are as of September 2024 and September 2023 and are aligned to the Group’s Sustainable Finance Impact Report available at sc.com/sﬁmpactreport . September 2024 and September 2023 ﬁgures have been prepared on the same basis as the Impact Report 2 Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. The report is available at sc.com/sustainab il ityl ibrary 3 The underlying assets could potentially span across various categories, includ ing renewable energy, susta inable water and wastewater management, access to essential services and food security. These assets, while included in the overall totals, remain unident iﬁed in terms of specif ic green and soc ial classif icat ion until allocation reports are received 72 Standard Chartered – Annual Report 2024 Sustainab il ity review Social ﬁnance assets 1,2 Sept 2024 $m Sept 2023 $m SDGs Access to water 121 72 Access to essential services 338 145 Education infrastructure – univers it ies 6 6 Healthcare infrastructure – hospitals 230 131 Provis ion of support ing healthcare-related products and services 95 8 Education loans 7 - Road infrastructure 120 46 Access to ﬁnance 4,050 3,062 SME lending 3,467 2,506 Microf inance 583 555 Affordable basic infrastructure 879 198 Sewage treatment – 1 Telecommunicat ions/Internet connect iv ity 879 197 Food security 14 22 Portfolio of social projects 25 – Total social assets 5,547 3,545 Total green and social ﬁnance assets 23,332^ 17,612 Sustainab il ity-linked assets¹ Sept 2024 $m Sept 2023 $m Total sustainab il ity-linked loans 6,619 4,805 Total sustainab il ity-linked assets 6,619 4,805 Total green and social ﬁnance and sustainab il ity-linked assets 1,3 Sept 2024 $m Sept 2023 $m Corporate & Investment Banking 24,098 17,103 Wealth & Retail Banking 5,853 5,314 Sustainable liab il it ies 1,2 Theme Sept 2024 $m Sept 2023 $m Total bond issuances 2,126 2,353 of which sustainable structured notes 950 795 of which green structured notes 60 – Total sustainable term deposits 3,325 4,554 Total sustainable term accounts 1,214 1,027 Total sustainable retail current and savings accounts and deposits 1,196 513 Total sustainable liab il it ies 7,861^ 8,447 1 Amounts included in the table are as of September 2024 and September 2023 and are aligned to the Group’s Sustainable Finance Impact Report available at sc.com/sﬁmpactreport . September 2024 and September 2023 ﬁgures have been prepared on the same basis as the Impact Report 2 Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. The report is available at sc.com/sustainab il ityl ibrary 3 The underlying assets could potentially span across various categories, includ ing renewable energy, susta inable water and wastewater management, access to essential services and food security. These assets, while included in the overall totals, remain unident iﬁed in terms of specif ic green and soc ial classif icat ion until allocation reports are received See sc.com/sﬁmpactreport for more highl ights on our Susta inable Finance assets in 2024, includ ing asset locat ions Wealth & Retail Banking sustainable invest ing The Group had $1.3 bill ion susta inable invest ing (SI) assets under management (AUM) at 31 December 2024 (a 30 per cent increase from $1.0 bill ion at 31 December 2023). Following a review of our methodology, we have reﬁned our deﬁn it ion of SI AUM this year to only include products that the Group actively advises on. This includes funds and structure products, and excludes bonds and equit ies. For further informat ion on our Susta inable Investments universe, refer to sc.com/sustainable-invest ing 73 Standard Chartered – Annual Report 2024 Sustainab il ity review Governance over sustainable ﬁnance products and frameworks The Group has Product Programme Guidance documents in place, which underpin each Sustainable Finance product that we offer, signed off by a delegate of the Sustainable Finance Governance Committee (SFGC) following approval of the product construct by the SFGC. The SFGC is our forum for review ing Susta inable Finance products and frameworks, and derives its authority from the Group Responsib il ity and Reputational Risk Committee (GRRRC). The GRRRC is the ultimate approval body for all of our Sustainable Finance Frameworks. Its membership is drawn from the CSO organisat ion, Legal, Compl iance, and ESG and Reputational Risk. The SFGC is our foremost committee for managing greenwashing risk in sustainable ﬁnance product design and labelling. For more, vis it sc.com/sustainab il ityl ibrary For more informat ion on our Green and Susta inable Product Framework please vis it sc.com/gspf For more informat ion on our Susta inab il ity Bond Framework please vis it sc.com/sustainab il ity-bond-framework For more informat ion on our Trans it ion F inance Framework please vis it sc.com/transit ion-ﬁnance-framework Green and Sustainable Product Framework Our GSPF governs the activ it ies that we as an organisat ion class ify as ‘green’, ‘social’ and ‘sustainable’. It sets out our approach to mit igat ing greenwashing risk across our product suite and deﬁnes the themes and activ it ies that we consider elig ible for green, social and sustainable ﬁnanc ing. The Framework is informed by internat ional market gu idel ines and standards on green and sustainable ﬁnance, includ ing among others, the Climate Bonds Standard, EU Taxonomy for sustainable activ it ies and the Green Loan Princ iples. Co- developed with Morningstar Sustainalyt ics, our Framework is reviewed annually with the aim to ensure it remains in line with the latest industry standards. Sustainab il ity Bond Framework Our SBF provides the basis for the issuance of green, social and sustainab il ity bonds and notes, drawing on the activ it ies that we view as ‘green’, ‘social’ and ‘sustainable’. It governs our sustainable debt products issued by the Group, provid ing transparency and guidance on the use of proceeds, process for project evaluation and selection, management of proceeds and reporting, as aligned with the ICMA Sustainab il ity Bond Princ iples. It has received a Second Party Opin ion from Morn ingstar Sustainalyt ics, wh ich conﬁrms our Framework is credible, impactful and aligns with industry guidel ines. Transit ion Finance Framework Our TFF sets out the assets and activ it ies that qualify under a ‘transit ion’ label. We have outlined our approach to deﬁning and govern ing transit ion ﬁnance in our TFF. This framework is informed by the 2023 International Energy Agency (IEA) Net Zero Emiss ions (NZE) 2050 scenario and is reviewed annually for alignment with the latest available science and industry standards. This year we published the third iterat ion of the TFF. Our Sustainable Finance Frameworks INTERNAL Green and Sustainable Product Framework 2024 Version 6.0 INTERNAL Sustainability Bond Framework December 2024 1 Standard Chartered Transit ion F inance Framework 2024 74 Standard Chartered – Annual Report 2024 Sustainab il ity review Our global footprint informs our unique understanding of the complexity associated with reaching our targets across our ﬁnanced and facil itated em iss ions, includ ing a he ightened focus on the security and resil ience of our markets as they respond to greater climate change induced uncertainty. As a ﬁnancial inst itut ion, the Group has an important role to play in supporting our clients and markets as they navigate this complexity, while driv ing and encourag ing change in the real-world economy. Published this year, the Group’s inaugural Transit ion Plan outlines our approach to deliver this change and aim to achieve net zero by 2050, demonstrating to clients, suppliers, customers, and other key stakeholders that we have a clear plan to deliver on the commitments we have made. The Transit ion Plan consol idates and expands upon the disclosures provided in this Annual Report, the Net Zero Roadmap and Net Zero Methodological White Paper. The Transit ion Plan has been developed cons ider ing guidel ines prov ided by the Transit ion Plan Taskforce and GFANZ frameworks. The Group also made progress on our target-setting coverage for ﬁnanced emiss ions, sett ing a baseline and target on our agriculture portfolio. Reporting also resumed for our aviat ion business sector following the sale of the Group’s global aircraft ﬁnance leasing business and major ity of lend ing portfolio in 2023. As a result, the Group has now formally completed target-setting for our twelve highest-emitt ing sectors. In 2023, the Partnership for Carbon Accounting Financ ials (PCAF) released its facil itated em iss ions methodology. 1 Following this, we continued to work on target-setting for the capital market issuances on which we assist our clients. The Group has also now set a facil itated em iss ions target for the oil and gas sector which currently makes up the major ity of emiss ions w ith in our fac il itat ion portfolio. Facil itated emiss ions refers to the em iss ions charge the Group incurs for provid ing the serv ice of facil itat ing the issuance of a debt capital markets bond for an oil and gas client. This charge is incurred regardless of whether the Group holds any portion of the bond or not. For informat ion about our approach to cl imate governance, refer to pages 98-102 Download our Transit ion Plan and ‘Net Zero Methodolog ical White Paper – The journey continues’ from sc.com/sustainab il ityl ibrary Climate We aim to reach net zero in our ﬁnanced emiss ions by 2050 and in our Scope 1 and Scope 2 emiss ions by 2025. Our net zero roadmap sets out the key steps we need to take to ach ieve this goal, and thus far we have made good progress achiev ing the goals we set for 2024. The Transit ion Plan sets out: • Our current practices: The evolving business practices that underpin our commitment to net zero. • Control environment: The governance framework and descript ion of controls over our net zero calculat ions, target management, client engagement, and decis ion-mak ing processes, designed to mainta in oversight, accountabil ity, and al ignment with the Group’s net zero objectives. • Embedding net zero: The measures and in it iat ives undertaken to integrate net zero considerat ions into the client lifecycle. How we are systematically integrat ing and operat ional is ing sustainab il ity into client engagement strategies, with the aim to drive measurable outcomes. 1 ‘The Global GHG Accounting & Reporting Standard (Part B): Facil itated Em iss ions’, Partnersh ip for Carbon Accounting Financ ials, December 2023 75 Standard Chartered – Annual Report 2024 Our net zero roadmap We aim to reach net zero emiss ions in our ﬁnanced emiss ions by 2050 and in our Scope 1 and Scope 2 emiss ions by 2025. To help us remain on track, we have set short- and medium-term object ives and quant if iable targets to manage and report on our progress on an annual basis. We have now set inter im 2030 targets for all the highest-emitt ing sectors in the Group’s portfolio. 2021 Launched our roadmap to net zero by 2050, includ ing inter im targets and a support ing methodology Announced plans to mobil ise $300 b ill ion in sustainable ﬁnance by 2030 Published our inaugural TFF 205 0 Aim to become net zero in our ﬁnanced emiss ions 2022 • Developed ﬁnanced emiss ions basel ines and 2030 targets for the aviat ion, sh ipp ing and automot ive manufacturers sectors • Joined PCAF 2024 • Measured and disclosed an agriculture baseline and target, the ﬁnal high emitt ing sector recommended by the NZBA • Resumed aviat ion sector report ing following the sale of the Group’s aircraft leasing business and a sign iﬁcant port ion of the lending portfolio • Set a baseline and target for our facil itated em iss ions portfolio focusing on the oil and gas sector which currently makes up the majority of em iss ions w ith in our facil itat ion portfolio • Issued the Group’s ﬁrst Transit ion Plan set out w ith reference to the Transit ion Plan Taskforce and GFANZ guidance • • • 2025 • Aim to be net zero in our Scope 1 and 2 emiss ions • Set a methane reduction target 2023 Announced our enhanced oil and gas absolute ﬁnanced emiss ions target Updated our power and steel sector baselines and targets moving from a revenue-based intens ity metr ic to a production-based intens ity metr ic Developed ﬁnanced emiss ions basel ines and set inter im 2030 targets for four addit ional sectors: cement, alumin ium, res ident ial mortgages and commerc ial real estate, bring ing the total number of sc ience-based targets set for high-emitt ing sectors to 11 Financed emiss ions basel ines and sectoral progress against targets, where ind icated, assured for the ﬁrst time by Ernst & Young Calculated the Group’s facil itated em iss ions from debt capital markets following the ﬁnal PCAF guidance (published in December 2023) under both the 33 per cent and 100 per cent weight ing factors Published the Group’s updated Net Zero Methodological White Paper – The journey continues 2032 • Targeted end date for legacy direct thermal coal min ing ﬁnancing globally in line with our Posit ion Statements 203 0 We will have substantially reduced our exposure to the thermal coal min ing sector in line with our Posit ion Statements Aim to meet the Group’s ﬁnanced and facil itated em iss ions inter im targets set for high-emitt ing sectors • • • • • • • • Sustainab il ity review 76 Standard Chartered – Annual Report 2024 Sustainab il ity review Our emiss ion sources We aim to reach net zero emiss ions in our ﬁnanced emiss ions by 2050 and in our Scope 1 and Scope 2 emiss ions by 2025. We focus on three areas to reduce emiss ions: Topics Size of emiss ions (%) Emiss ions sources Learn more Our operations 0.1 Scope 1 and Scope 2: Emiss ions from the combust ion of fuels in owned or controlled sources e.g. boilers, generators and vehicles, refrigerat ion and a ir condit ion ing equipment and the purchase of electric ity Page 77 Our supply chain 1.5 Scope 3 Categories 1-14 : Emiss ions from our upstream and downstream supply and value chain Page 78 Our clients 98.4 Scope 3 Category 15: Emiss ions from transact ing with our clients Page 78 The following tables summarise our most recent performance: Scope 1 and 2 emiss ions 2024 (tCO 2 e) 2023 (tCO 2 e) 2022 (tCO 2 e) Scope 1 emiss ions 1, 3 7,696 8,488 2,071 Scope 2 emiss ions 2, 3 17,272 26,246 47,363 Total Scope 1 and 2 emiss ions 24,968 34,734 49,434 Scope 3 supply chain emiss ions⁴: 2024 (tCO 2 e) 2023 (tCO 2 e) 2022 (tCO 2 e) Category 1: Purchased goods and services (other) 5 345,193 346,819 380,732 Category 1: Purchased goods and services (data centres) 3 4,186 4,431 7,060 Category 2: Capital goods 43,716 42,707 34,496 Category 4: Upstream transportation and distr ibut ion 27,268 24,125 20,300 Category 5: Waste generated in operations 379 520 747 Category 6: Business travel (air travel) 6 53,326 48,046 39,107 Category 6: Business travel (miscellaneous other than air travel) 16,420 8,918 2,654 Category 7: Employee commuting 7 81,065 71,228 61,917 Category 13: Downstream leased assets (real estate) 7,119 7,898 8,594 Total Scope 3 supply chain emiss ions 578,672 554,692 555,607 Scope 3 Category 15: Investments 8 2024 (tCO 2 e) 2023 (tCO 2 e) 2022 (tCO 2 e) Financed emiss ions⁹ 36,410,000 42,330,000 49,872,000 Facil itated em iss ions 1,761,000 3,007,000 4,025,000 Total Scope 3 Category 15 emiss ions⁹ 38,171,000 45,337,000 53,897,000 Agriculture sector Scope 3 emiss ions¹⁰ 10,300,000 – – 1 As we aim to improve our emiss ions measurement and report ing year-on-year, we have included leased vehicle ﬂeet emiss ions in our Scope 1 data in 2024 (1,340 tCO 2 e) and fugit ive em iss ions s ince 2023 (3,877 tCO 2 e in 2024 and 5,266 tCO 2 e in 2023). 2022 data was not available for fugit ive em iss ions 2 Scope 2 ind irect em iss ions have been calculated us ing the market-based approach as set out in the GHG protocol 3 Our Scope 1 and 2 emiss ions and Scope 3 Category 1: Purchased goods and serv ices (data centres) emiss ions calculat ions for the most recent reporting year were independently assured by Global Documentation Ltd. The assurance scope in 2024 now includes the leased vehicle ﬂeet and fugit ive em iss ions 4 Scope 3 Category 3, Category 8, Category 9, Category 10, Category 11, Category 12 and Category 14 are not relevant for the Group due to the nature of our business, products and services and operations. GHG emiss ions assoc iated with these categories are not deemed as relevant and/or material 5 We have restated our Scope 3 Category 1: Purchased goods and services emiss ions data for the 2023 report ing year from 286,304 tCO 2 e to 346,819 tCO 2 e due to one of our largest suppliers (by spend) restating their publicly reported emiss ions. The suppl ier restatement is a result of improved data accuracy with in its calculations. As underlying data evolves, we will reﬁne our methodology to improve accuracy and align to evolving industry standards, for example data centre emiss ions categorisat ion and appropr iate emiss ions allocat ion 6 Page 61 of this report sets out the different reporting periods for the data in this table. This year, the reporting period for Category 6: Business travel (air travel) has been adjusted from a 1 October 2023 to 30 September 2024 period to a 1 January 2023 to 31 December 2023 period, to align these emiss ions w ith those in Category 6: Business travel (miscellaneous other than air travel). While a change in reporting period does not require a restatement of prior reporting periods under the GHG Protocol – Corporate Value Chain (Scope 3) Accounting and Reporting Standard, we have opted to restate 2023 from 60,279 tCO 2 e to 48,046 tCO 2 e to allow a comparable period. We plan to complete a review of our air travel methodology in 2025 7 Category 7: Employee commuting includes both emiss ions from commut ing (67,035 tCO 2 e) and emiss ions assoc iated with home ofﬁce working (14,030 tCO 2 e) 8 Category 15: Investments includes ﬁnanced and facil itated em iss ions and are measured on a one to two-year lag based on the ava ilab il ity of third-party and client data. Total Category 15 ﬁnanced emiss ions have been updated for fac il itated em iss ions for the o il and gas sector which were reported separately for the ﬁrst time during 2024. Facil itated em iss ions are calculated on a three year roll ing average. Mortgage absolute ﬁnanced emiss ions were restated from 0.04 MtCO 2 e to 0.4 MtCO 2 e following a decimal place error in reporting in 2022 and 2023. Category 15 emiss ions are rounded to the nearest 1,000 MtCO 2 e. Facil itated em iss ions values are calculated on a three-year rolling average 9 Excluding agriculture sector Scope 3 emiss ions 10 During the year, the Group completed a sector-specif ic basel ine and target for the agriculture sector, the last high emitt ing sector as deﬁned by the NZBA guidance. The baseline emiss ions were calculated for the 2023 report ing year using the Implied Temperature Rise (ITR) method, and a 2030 inter im target has been set against the 2023 baseline. The ITR method has been applied, which allows us to capture Scope 3, due to the complexit ies of the value cha in of the sector, availab il ity of data and the nature of operation of our clients in the sector value chain. The decis ion to include Scope 3 emiss ions of the Group’s agr iculture clients was tacit as this has the most real-world impact, by allowing the Group to engage with its clients to decarbonise their operations and supply chains. On an absolute emiss ion bas is the agriculture portfolio has 1.2 MtCO 2 e in its Scope 1 and 2 emiss ions and a further 10.3 MtCO 2 e in its Scope 3 emiss ions, g iv ing the sector 11.5 MtCO 2 e in total (see Agriculture in ‘Detailed progress against our sectoral ﬁnanced emiss ion targets’) . In pr ior years, the Scope 1 and 2 emiss ions of the Group’s agriculture clients were included with in the Category 15 absolute ﬁnanced em iss ions, in the “Others” category. Agriculture Scope 3 emiss ions were not included in prior year numbers because the sector deep dive had not occurred and scope 3 is generally not calculated for the agriculture sector. As such, the Scope 3 emiss ions of 10.3 MtCO 2 e are not included in the Total Scope 3 Category 15 emiss ions above as th is would not be comparable to prior years 77 Standard Chartered – Annual Report 2024 Sustainab il ity review This section covers our Scope 1 and Scope 2 emiss ions as deﬁned on page 76 Our approach to managing our environmental footprint The Group deﬁnes and aims to achieve net zero in line with ISO IWA 42 as a condit ion in which human-caused residual GHG emiss ions are balanced by human-led removals over a specif ied per iod and with in spec if ied boundar ies whereby residual emiss ions are those GHG em iss ions that rema in after taking all possible actions to implement emiss ions reduct ions. Our approach is to prior it ise the direct reduction of Scope 1 and 2 emiss ions by: 1. Using efﬁc iency measures across our property portfol io to actively reduce our energy consumption 2. Purchasing renewable energy, either through on-site installat ions or power purchase agreements 3. Purchasing energy attribut ion cert if icates/renewable energy certif icates – where poss ible in the same regions where energy is consumed. This is reinforced by our commitment to purchasing 100 per cent renewable electric ity by 2025 when we joined RE100¹ in 2022. We counterbalance any residual Scope 1 and 2 emiss ions by purchasing and retir ing carbon cred its as described in the offsets section below. Progress in 2024 We reduced our Scope 1 and 2 emiss ions by 28 per cent to 24,968 tCO 2 e during 2024. Scope 1 This year, we were able to expand the Scope 1 emiss ions that we capture to include emiss ions from our veh icle ﬂeet. Our fuel emiss ions are mostly due to the use of back-up d iesel generators, which are operated when regular power supplies from the grid are disrupted – which happens frequently in some markets (for example, Niger ia and Pak istan). We are using biod iesel and b iofuels in markets when they become available (for example, Hong Kong, Singapore and India). Scope 2 We reduced our Scope 2 emiss ions by 34 per cent in 2024. This is partially due to our measured real estate decreasing by 3.4 per cent during this time, as we continually right-size and adjust our portfolio size to suit our operation. We have also actively sought to increase the proportion of our electric ity usage that comes from a renewable source to 77 per cent this year. This can take the form of power purchase agreements, clean energy contracts, on-site solar installat ions or renewable energy certif icates. We continue to work towards purchasing renewable energy in every country possible and are striv ing to meet our target of 100 per cent by 2025. However, due to market constraints and lack of renewable energy options in some markets with in Africa and the Middle East (for example, Bahrain, Botswana, Ghana, Iraq and Tanzania), we may not be able to meet our RE100 1 aspirat ion in 2025. We also have some countries where we purchase renewables through ‘cross-border’ grid feeds, which is recognised for our net zero target, but not recognised by RE100. Despite this, we remain committed to the in it iat ive, however, acknowledging that market constraints may lim it our ab il ity to achieve these goals in the short/mid-term, ﬁnanc ial or other constraints may reasonably prevent the Group from taking all available steps to meet the target. Offsets We have purchased and retired carbon credits to mit igate our residual operational Scope 1 and 2 emiss ions for 2024 and Scope 3 emiss ions assoc iated with air travel and outsourced on-premise data centres. Our carbon credit portfolio includes a range of decarbonisat ion act iv it ies that result in both removal and reduction of atmospheric methane and carbon diox ide, w ith the major ity be ing for carbon diox ide removal. The projects we sourced were selected based on criter ia such as integr ity, prox im ity to our operat ions, and co-beneﬁts. For 2024, the relevant projects were issued by Verra, Gold Standard and Puro Earth. Waste We aim to achieve 90 per cent avoidance of landﬁll by 2030. In 2024, we reduced our overall waste generated by 18 per cent and achieved 61 per cent avoidance of landﬁll (up from 52 per cent in 2023). Our sites in India, Kenya and Poland achieved TRUE Zero Waste programme platinum rating. We are single-use plastics free in 324 locations currently. We have also engaged with an NGO to upcycle hard-to recycle items and are min im is ing electron ic waste by prolonging the lifespan of our technology assets through partnerships with third parties. Water We retained a water efﬁc iency metr ic of 0.53 kilol itres per square metre in 2024 despite a 39 per cent increase in the proportion of our employees returning to the ofﬁce. While water availab il ity is a growing challenge in many of our markets, we did not face any issues sourcing potable water in 2024. We continue to seek to take a responsible approach to managing water use across the Group. For detailed environmental performance data see our ESG data pack at sc.com/esg-data-pack Read the princ iples and methodology for measur ing our environment data at sc.com/environmentcriter ia Read the independent assurance statement related to Scope 1 and 2 GHG emiss ions at sc.com/environmentalassurance Our operations 1 RE100 is a global corporate renewable energy in it iat ive br ing ing together bus inesses that are committed to purchasing 100 per cent renewable electric ity 78 Standard Chartered – Annual Report 2024 Sustainab il ity review This section covers our Scope 3 Category 1–14 emiss ions. Our approach to managing impacts in our upstream value chain The Supply Chain Management team provides procurement services internally to drive commercial value generation and manage sustainab il ity and supply chain risks. Proactive supplier engagement and data quality remain a key focus of our supply chain sustainab il ity strategy as we continue to engage constructively with suppliers to increase transparency and accountabil ity around cl imate impact, and to promote emiss ions reduct ions. Supplier Charter and engagement Through our Supplier Charter, we set out the princ iples that Standard Chartered expects from its suppliers, and those with in the suppl iers’ sphere of inﬂuence that assist them in performing their obligat ions for us. These pr inc iples have been drawn from the internat ional organ isat ions and convent ions of which we are members or signator ies. We engage our largest suppliers to better understand where they stand on climate impact matters. Through supplier questionna ires and d irect engagement, we request our larger suppliers (by spend) to share their emiss ions informat ion and/or to set reduction targets in line with our internal reduction goals. We aim to direct at least 50 per cent of our total spend 1 to suppliers who have set science-based emiss ion reduction targets. We look for opportunit ies for innovat ion and collaborat ion with our suppliers on shared sustainab il ity goals. For example, in 2024 we partnered with one of our global technology suppliers to reduce the GHG emiss ions from across our supply chain by creating a standard package for each monitor we purchase while excluding monitor stands. This approach enabled us to reduce the emiss ions of sh ipp ing unnecessary monitor stands, cabling and plastic packaging. Supply chain emiss ions Over time, the accuracy and coverage of suppliers’ emiss ions calculations have been improv ing. Desp ite this, lim itat ions to the availab il ity of this data remain. Therefore, we continue to use a hybrid methodology for emiss ions calculat ions which combines emiss ions data collected from vendors (when available) with supplier spend and sector average emiss ions data for those who are unable to report. In 2024, we engaged with our suppliers to collect supplier specif ic data to improve the quality of our reporting. This resulted in an increase from approximately 24 to 32 per cent of supplier-specif ic data collected, either via questionna ires or CDP responses. Consequently, we have restated Scope 3 Category 1 Purchased goods and services emiss ions data for the 2023 reporting year (based on 2022 data). In collaboration with DHL, one of our largest logist ics suppl iers, we coinvested in sustainable aviat ion fuel to reduce em iss ions related to the shipment of our parcels. We mainta in travel demand measures and continue to offset air travel emiss ions as described on page 77. As data accuracy increases, we will be better able to understand and act upon the key contributors to our impact and determine further opportunit ies for reduct ions. Lim itat ions Supply chain emiss ions calculat ions are evolving and remain heavily dependent on supplier-provided informat ion. As part of our continuous improvement process, we will continue to work with our suppliers on data quality and our own internal stakeholders to continually improve and enhance our Scope 3 emiss ions report ing accuracy. This includes the accuracy of ind iv idual supplier category mapping to the appropriate emiss ions calculat ion factor. As underlying data evolves, we will reﬁne our methodology to improve accuracy and align to evolving industry standards; for example, data centre emiss ions categor isat ion and appropr iate emiss ions allocat ion. Our Supplier Charter can be viewed at sc.com/suppliercharter For further informat ion on how we engage w ith suppliers see page 37 and for supplier spend data see our ESG data pack at sc.com/esg-data-pack 1 Spend includes Scope 3 Category 1: Purchased goods and services and capital goods suppliers excluding non-addressable spend. Addressable spend is deﬁned as external costs incurred by Standard Chartered in the normal course of business where Supply Chain Management has inﬂuence over where the spend is placed. It excludes costs such as government and brokerage fees, rates and taxes and employee expenses. It also excludes any Category 1 co-location data centres which are calculated on energy use and reported separately under Scope 3 Our suppliers This section covers our Scope 3 Category 15 emiss ions (ﬁnanced and fac il itated em iss ions). The majority of our GHG em iss ions are l inked to our lending activ it ies, known as ﬁnanced emiss ions. We have pr ior it ised our efforts in the highest-emitt ing sectors of our portfol io, and where working with our clients can have the greatest impact. Our carbon accounting is calculated and reported in line with the GHG Protocol and PCAF Standards. The Group has now set a target for its agriculture portfolio. With the addit ion of th is sector, the Group has now set and disclosed science-based inter im 2030 ﬁnanced em iss ions targets for our 12 highest-emitt ing sectors. We are work ing across our businesses and functions and, alongside our clients, aim to deliver these targets, notwithstand ing the challenges presented by a material portion of our markets not having a commitment to achieve net zero by 2050. For further informat ion, please refer to the Group’s ‘Net Zero Methodological White Paper – The journey continues’ via sc.com/sustainab il ityl ibrary Our clients 79 Standard Chartered – Annual Report 2024 Sustainab il ity review First included in analysis 2021 2022 2023 2024 Thermal coal min ing Agriculture Commercial real estate Resident ial mortgages Alumin ium Cement Steel Oil and gas Power Automotive manufacturers Shipp ing Aviat ion Setting science-based targets This year, the Group has set a baseline and target for agriculture. With the addit ion of th is sector, the Group has now set and disclosed science-based inter im 2030 ﬁnanced emiss ions targets for our 12 h ighest-emitt ing sectors. In addit ion to sett ing our ﬁnal ﬁnanced emiss ions sector target, a facil itated em iss ions target was set dur ing the year for oil and gas, which currently makes up the major ity of emiss ions w ith in our fac il itat ion portfolio. The Group has also resumed reporting on the aviat ion sector following the sale of the Group’s aircraft leasing business and a sign iﬁcant port ion of the lending business associated with this. The Group’s targets have been informed by pre-eminent, scient iﬁc forward-look ing scenario providers. This includes the IEA for energy sectors, the Miss ion Poss ible Partnership (MPP) for metals and aviat ion, the Internat ional Marit ime Organizat ion (IMO) for sh ipp ing and Carbon R isk Real Estate Monitor (CRREM) for the resident ial real estate sector. During 2024, the Group engaged our external assurance provider to perform an ISRS 4400 (Revised) ‘Agreed upon Procedure’ review to conﬁrm whether our targets for thermal coal, steel, oil and gas, power, automotive manufacturers, shipp ing, cement, alum in ium, and commerc ial real estate meet the long-term temperature goal of the Paris Agreement, and are mathematically accurate in reference to the third- party science-based scenarios. Due to our footprint – with many emerging markets and developing countries reliant on carbon-intens ive industr ies – our ﬁnanced emiss ions may increase before they decrease. However, our aim is to remain Paris aligned for our inter im targets and aligned to a science-based 1.5°C scient iﬁc pathway by 2050. Given our science-based approach, we will strive to update our targets both as the scient iﬁc commun ity updates its reference scenarios and as data availab il ity improves. The Agreed-Upon Procedures Report on our Intermediate Financed Emiss ions Targets can be accessed v ia sc.com/sustainab il ityl ibrary 2030 ﬁnanced emiss ions targets 2030 ﬁnanced emiss ions targets 80 Standard Chartered – Annual Report 2024 Sustainab il ity review Detailed progress against our sectoral ﬁnanced emiss ions targets 2023 2 2022 2 Baseline year Sector 2023 Exposure in scope ($bn) Interim 2030 target 1 Absolute emiss ions 3 (MtCO 2 e) Physical intens ity Absolute emiss ions 3 (MtCO 2 e) Physical intens ity % change cumulative to baseline Year target set Agriculture 4 7.8 2.2-2.4°C (11-19%) 11.5 2.72^ °C na 4 na 4 2023 na 4 2024 Alumin ium 0.1 6.1 t CO 2 e/tonne alumin ium (–) 0.1 3.28^ tCO 2 e/ tonne alumin ium 0.3 4.59 tCO 2 e/tonne alumin ium 2021 -42 2023 Automotive manufacturers 3.2 66–100 gCO 2 /Vkm (44 – 63%) 3.1 157^ gCO 2 /Vkm 2.8 165 gCO 2 /Vkm 2021 -12 2022 Aviat ion 5 1.3 773 gCO 2 e/RTK 8 (33%) 1.2 782^ gCO 2 e/ RTK na 5 na 5 2021 -32 2024 Cement 0.6 0.52 tCO 2 /tonne cement (22%) 2.1 0.62^ tCO 2 / tonne cement 3.5 0.66 tCO 2 /tonne cement 2021 -8 2023 Commercial real estate 5.0 19–39 kgCO 2 e/sq.m (47 –74%) 0.1 58^ kgCO 2 e/ Sq.m 0.1 62 kgCO 2 e/sq.m 2021 -21 2023 Oil and gas 6.4 9.3 MtCO 2 e (29%) 9.4^ na 9 10.3 na 9 2020 -28 2023 Power 5.2 0.17–0.28 tCO 2 / MWh (46 –67%) 4.8 0.43^ tCO 2 /MWh 5.9 0.47 tCO 2 /MWh 2021 -17 2023 Shipp ing 6 4.6 0% delta 0% delta 2.9 +3.2%^ delta +8.2%^ delta 2.8 +11.8% delta +16% delta 2021 -4 2022 Steel 0.5 1.4–1.6 tCO 2 /tonne steel (22 –32%) 1.3 1.87^ tCO 2 / tonne steel 2.0 1.97 tCO 2 /tonne steel 2021 -9 2023 Thermal coal min ing 0.03 0.5 MtCO 2 e (85%) 1.2^ na 9 1.6 na 9 2020 -64 2021 Others 7 45.4 na 10 8.5 na 10 12.6 na 10 na 10 na 10 na 10 CIB WRB 2023 2 2022 2 Baseline year Sector 2023 Exposure in scope ($bn) Interim 2030 target 1 Absolute emiss ions 3 (MtCO 2 e) Physical intens ity Absolute emiss ions 3 (MtCO 2 e) Physical intens ity % change cumulative to baseline Year target set Resident ial mortgages 11 68.4 29–32 kgCO 2 e/sq.m (15 –23%) 0.41 36.04^ kgCO 2 e/sq.m 0.43 37.7 kgCO 2 e/sq.m 2021 -4 2023 1 An Agreed Upon Procedure review was performed by EY over the Group’s net zero targets except for aviat ion, agr iculture and resident ial mortgages. Procedures included conﬁrm ing a net zero target had been set, that the scenarios used to set net zero targets are from credibleth ird-party sources as recommended by the NZBA and the selected scenarios align to the quantitat ive temperature goal of art icle 2(1)a of the Paris Agreement 2 Due to third-party data sets that feed into our emiss ions calculat ions, the Group’s reported ﬁnanced emiss ions ﬁgures have a one to two-year lag depending on when third-party data providers release their data refresh 3 Emiss ions are calculated in CO 2 except where other GHGs are material which are noted as CO 2 e (this includes agriculture, alumin ium, av iat ion, commerc ial real estate, oil and gas, shipp ing, thermal coal m in ing and res ident ial mortgages) 4 During the year a sector-specif ic deep d ive was performed on the agriculture sector, the last highest-emitt ing sector as deﬁned by the NZBA. The basel ine emiss ions have been measured and a target set for the 2023 year of report ing 5 Aviat ion em iss ions report ing was resumed in 2024 following the sale of the Group’s aircraft leasing business and a sign iﬁcant port ion of the lending business associated with this, during 2023. No 2022 emiss ions value has been measured this year. 6 During the year the Poseidon Princ iples were updated to only requ ire reporting against the ‘min imum’ and ‘str iv ing’ scenar ios. Reporting against the old IMO exist ing strategy has been d iscont inued. Progress is reported on the revised min imum strategy cons istent with prior year 7 Others includes miscellaneous non-high-emitt ing sectors not included in a sector deep dive 8 RTK (revenue tonne-kilometre) is a measure of annual passenger and cargo aircraft trafﬁc representing the metric tonne of revenue load carried one kilometre 9 Value is not required as the Group has set an absolute emiss ions target and therefore the production intens ity of the portfol io has not been measured 10 Value is not required as the Group has not set a target for the ‘others’ sector 11 The Group has set its resident ial mortgage target range at the most amb it ious end of the public commitments made by governments and power companies in the countries where we operate, and has been benchmarked to the CRREM scient iﬁc pathway. Pr ior year absolute emiss ions have been restated from 0.04 to 0.4 MtCO 2 e following a decimal place error in reporting in 2022 and 2023. Reporting for resident ial mortgages includes Hong Kong, Singapore, Taiwan and South Korea. These markets make up the majority of the em iss ions in our resident ial mortgages portfol io Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. The report is available at sc.com/sustainab il ityl ibrary For further informat ion, please refer to our ‘Net Zero Methodolog ical White Paper – The journey continues’ publicat ion v ia sc.com/sustainab il ityl ibrary 81 Standard Chartered – Annual Report 2024 Sustainab il ity review Our approach to measuring ﬁnanced emiss ions Sector Emiss ions approach Scenario Value chain Scope of emiss ions 2023 PCAF score 2022 PCAF score In scope exposure coverage 1 Agriculture Implied temperature rise (ITR) IPCC (1.5C – 2C) Full value chain (pre-farm and post-farm) 1, 2 2.7 2 na 82% 3 4.7 3 na Alumin ium Production intens ity MPP STS Alumin ium producers 1, 2 1.2 2.4 100% Automotive manufacturers Physical intens ity IEA APS and NZE Automotive manufacturers 1, 2 2.3 2 2.2 2 100% 3 5.0 3 5.0 3 Aviat ion Physical intens ity MPP Prudent Aircraft operators 1 2.0 2 na 100% 3 2.0 3 na Cement Production intens ity IEA NZE Clinker and cement manufacturing 1, 2 2.3 2.3 100% Commercial real estate Physical intens ity IEA APS and NZE Real estate leasing 1, 2 4.0 4.0 100% Oil and gas Absolute emiss ions IEA NZE Upstream, midstream and downstream 1, 2 3.2 2 3.2 2 98% 3 3.2 3 3.2 3 Power Production intens ity IEA APS and NZE Electric ity generat ion 1, 2 3.4 3.3 100% Shipp ing Physical intens ity IMO rev. min. IMO striv ing Shipp ing lessors and companies 1, 3 1.0 1.0 99% Steel Production intens ity MPP TM Steel producers 1, 2 3.3 3.8 100% Thermal coal min ing Absolute emiss ions IEA NZE Thermal coal 1, 2 3.9 2 3.7 2 100% 3 3.0 3 3.0 3 Others Absolute emiss ions IEA NZE Other sectors 1, 2 3.1 3.3 86% Resident ial mortgages Physical intens ity CRREM Resident ial households 1, 2 4.4 4.4 100% Sector emiss ions for mater ial Scope 3 high-emitt ing sectors 2023 (MtCO 2 e) 2022 (MtCO 2 e) 2021 (MtCO 2 e) Sector Scope 1, 2 Scope 3 Scope 1, 2 Scope 3 Scope 1, 2 Scope 3 Agriculture 1.2 10.3 na na na na Automotive manufacturers 0.1 3.0 0.1 2.7 0.1 3.2 Oil and gas 1.5 7.9 1.7 8.6 1.3 8.9 Thermal coal min ing 0.1 1.1 0.1 1.5 0.1 2.2 1 In scope exposure falls below 100 per cent in instances where client data is not available, and the carbon calculation cannot be run 2 PCAF score for Scope 1 and 2 emiss ions 3 PCAF score for Scope 3 emiss ions For further informat ion, please refer to our ‘Net Zero Methodolog ical White Paper – The journey continues’ publicat ion v ia sc.com/sustainab il ityl ibrary CIB WRB 82 Standard Chartered – Annual Report 2024 Sustainab il ity review Agriculture Alumin ium Balance in scope Interim target Performance versus baseline $7.8bn 2.2 -2.4°C newly set Sector background The agriculture sector accounts for 20 per cent of global anthropogenic 1 emiss ions per the World Bus iness Council for Sustainable Development (WBCSD) with an extensive value chain from fertil iser to reta il stores. Emiss ions ar ise from inputs such as fertil iser, crops and l ivestock (includ ing methane from rum inant portfolios), and from the distr ibut ion and processing of farm products. Approach to achiev ing net zero targets • Tracking our clients who do not have commitments, engaging and actively working with those clients to advise on getting their journey started and targets set • Encouraging our clients to use renewable energy and improve energy efﬁciency • Improving traceabil ity and labell ing for sustainable products • Reduce food loss in processing, especially in developing economies Baseline target and portfolio progress 2023 to 2030 2.0°C scope 1,2 and 3 scenario 1.5°C scope 1,2 and 3 scenario Baseline 2.72 2.4°C 2.2°C 2023 3.00 2.50 2.00 1.50 Implied Temperature Rise (ITR) score 24 25 26 27 28 29 2030 -11% to -19% Progress in the year An agriculture sector baseline and target was measured and reported for the ﬁrst time during 2024. A temperature alignment target has been set reﬂecting the complexity of the agriculture value chain, as well as the divers ity of the Group’s clients in that value chain that include activ it ies from fertil iser, through farm ing, up to and includ ing food processors, wholesalers and traders (noting that the Group does not have a ruminants book of any material ity). A range target was set for the sector using a well below 2°C and 1.5°C pathway which include Scope 1, 2 and Scope 3 emiss ions to ensure the most impact. This places an emphasis on the larger corporates with in the value chain to drive change, which includes engagement with their suppliers to decarbonise their Scope 3 emiss ions, hence where the Group believes the greatest impact can be achieved. Balance in scope Interim target Performance versus baseline $0.1bn 6.1 tCO 2 e/tonne alumin ium -42% Sector background The production of alumin ium is emiss ions intens ive and is responsible for 1 per cent of energy-related emiss ions per IEA WEO, 2024 2 . The alumin ium sector rel ies heavily on electric ity from the local grid. Over 60 per cent of the sector’s emiss ions are attr ibutable to the electric ity consumed dur ing smelting for the electrolytic reduction process. Approach to achiev ing net zero targets • Promoting electric ity decarbon isat ion and engag ing clients to uptake renewable energy power purchase agreements • Reducing direct emiss ions through electr if icat ion, fuel switch ing and use of carbon capture, ut il isat ion and storage (CCUS) • Incentiv is ing recycling and resource efﬁc iency wh ich has a sign iﬁcantly lower product ion intens ity Baseline target and portfolio progress 2021 to 2030 Portfolio progress MPP STS Baseline 5.62 3.28 4.59 6.1 2021 9 8 7 6 5 4 3 2 1 0 Emiss ion intens ity (tCO 2 e / Tonne Alumin ium) 22 23 24 25 26 27 28 29 2030 Progress in the year The production intens ity for the alum in ium portfol io has declined from 4.59 tCO 2 e/tonne alumin ium to 3.28 tCO 2 e/tonne alumin ium, a decrease of 29 per cent year-on-year. This was driven by increased lending issued to alumin ium producers who util ise a h igh percentage of scrap with in the ir production process moving the overall intens ity of the portfol io down, given the lower intens ity of these cl ients. Scrap results in avoided electric ity use from the electrolys is phase of production with emiss ions only produced from the collect ion, transport and smelting of recycled alumin ium. The Group remained well below our 2030 target because of balances of recycled alumin ium cl ients, which we aim to expand in the future. We are further working with our primary alumin ium producers on their options for procurement of clean energy. 1 Anthropogenic emiss ions are em iss ions caused by human act iv it ies and include energy-related emiss ions from the burn ing of fossil fuels, emiss ions from agriculture and land use change and emiss ions from waste 2 Sector emiss ions contr ibut ion as per the IEA’s WEO released in 2024 On track 83 Standard Chartered – Annual Report 2024 Sustainab il ity review Automotive Aviat ion Balance in scope Interim target Performance versus baseline $3.2bn 66 – 100 gCO 2 /Vkm -12% Sector background The automotive sector is a key sector for internat ional supply chains and the economy, with tailp ipe em iss ions be ing the primary source of carbon emiss ions from the sector. Annually, the exhaust emiss ions from passenger veh icles account for 8 per cent of global energy-related emiss ions per IEA WEO, 2024. Approach to achiev ing net zero targets • Encouraging fuel-switch and improv ing fuel-efﬁciency as a ﬁrst step • Maxim is ing the electrif icat ion production of vehicles • Encouraging recycling and the circular economy in the manufacturing process Baseline target and portfolio progress 2021 to 2030 178 165 157 100 66 2021 255 240 225 210 195 180 165 150 15 30 45 60 75 90 105 120 135 Emiss ion intens ity (gCO 2 / vkm) 23 24 22 25 26 27 28 29 2030 Portfolio progress IEA APS IEA NZE Baseline -44% to -63% Progress in the year The automotive manufacturers portfolio intens ity, wh ich is based upon the CO 2 of tailp ipe em iss ions per d istance travelled, has decreased 5 per cent year-on-year from 165 gCO 2 /Vkm to 157 gCO 2 /Vkm. This is driven by ongoing ﬁnanc ing prov ided to manufacturers who are solely making EVs, especially in China, and the ﬁnanc ing of manufacturers who are changing their production mix away from internal combustion engines towards hybrid engines and EVs. The Group is actively monitor ing and steer ing the portfolio towards those automotive manufacturers that have a higher proportion of EVs in their overall vehicle production mix. Balance in scope Interim target Performance versus baseline $1.3bn 773 gCO 2 e/RTK -32% Sector background The aviat ion sector accounts for 2 per cent of global energy- related emiss ions per IEA WEO, 2024. The majority of em iss ions ar ise from the burning of aviat ion fuels. Approach to achiev ing net zero targets • Encouraging our clients to scale up the production and use of sustainable aviat ion fuels to reduce em iss ions • Encourage the transit ion of the global ﬂeet to the most fuel-efﬁcient (new technology) a ircraft Baseline target and portfolio progress 2021 to 2030 1,152 782 773 2021 1,500 1,300 1,100 500 700 900 Physical intens ity (gCO 2 e/RTK) 23 24 22 25 26 27 28 29 2030 Portfolio progress MPP Prudent Baseline -33% Progress in the year Aviat ion sector em iss ions were reported for the ﬁrst t ime in 2021. Following this, the Group’s aircraft operating leasing business and a select portfolio of the lending business was sold during 2023. Due to this structural change in the Group’s portfolio emiss ions proﬁle, report ing of the aviat ion sector was paused await ing ﬁnal sale. During 2024, reporting has been resumed. The target for the sector has been updated, in line with the industry’s Pegasus Guidel ines launched in 2023 and based on the revised MPP Prudent scenario. Since the 2021 baseline, the emiss ions intens ity of the Group has decreased 32 per cent from 1,152 tCO 2 e/RTK to 782 tCO 2 e/RTK primar ily as a result of the a ircraft portfolio sales which removed older less-efﬁc ient a ircraft from the Group’s portfolio. The Group’s emiss ions intens ity is on track to be in line with the MPP Prudent scenario by 2030 given the major ity of the portfol io funding new technology aircraft with improved fuel efﬁc iency when compared with the current global market ﬂeet. On track 84 Standard Chartered – Annual Report 2024 Sustainab il ity review Cement Commercial real estate Balance in scope Interim target Performance versus baseline $0.6bn 0.52 tCO 2 /tonne cement -8% Sector background The cement sector contributes approximately 6 per cent towards global energy-related emiss ions per IEA WEO, 2024. The primary source of the emiss ions occurs dur ing the production process where a chemical reaction takes place between limestone and heat. Approach to achiev ing net zero targets • Improving energy efﬁc iency of plants • Encourage clients to use alternative fuels such as waste and biomass in the production process • Use of clinker substitutes • Financ ing of electr ic kiln technologies Baseline target and portfolio progress 2021 to 2030 Portfolio progress IEA NZE Baseline 0.67 0.62 0.66 0.52 2021 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 Emiss ion intens ity (tCO 2 / Tonne Cementit ious product) 22 23 24 25 26 27 28 29 2030 -22% Progress in the year The cement portfolio intens ity has dropped from 0.66 tCO 2 / tonnes cement to 0.62 tCO 2 /tonnes cement, a decrease of 6 per cent year-on-year. This is driven by increased lending to clients, with lower production intens it ies seen from our clients as they improve on their energy efﬁciency of the ir plants in order to meet their targets. In addit ion to th is, the Group has also increased our exposure to lower-intens ity cl ients, which has resulted in the portfolio average emiss ions reduc ing as well. Balance in scope Interim target Performance versus baseline $5.0bn 19 –39 kgCO 2 e/sq.m -21% Sector background The commercial real estate sector contributed 2 per cent towards global energy- related emiss ions per IEA WEO, 2024. Emiss ions pr imar ily ar ise from the operation of the build ing and to a lesser extent embodied emiss ions related to its construction. Approach to achiev ing net zero targets • The decarbonisat ion of the power gr ids which supply the commercial build ings ﬁnanced. • Encourage fuel switch from fossil fuels to heat pumps or direct electric ity • Lending to retroﬁtt ing ex ist ing bu ild ing stock to improve operational efﬁc iency by install ing better insulat ion, low- energy appliances, efﬁc ient cool ing and on-site battery and thermal storage • Power purchase agreement of renewable electric ity from the local grid Baseline target and portfolio progress 2021 to 2030 73 62 58 39 19 2021 80 75 70 65 60 55 50 45 0 5 10 15 20 25 30 35 40 Emiss ion intens ity (kgCO 2 e/sq.m ﬂoor area) 23 24 22 25 26 27 28 29 2030 Portfolio progress IEA NZE IEA APS Baseline -47% to -74% Progress in the year The commercial real estate portfolio intens ity has decreased 6 per cent from 62 kgCO 2 e/sq.m to 58 kgCO 2 e/sq.m year-on-year. The reduction is predominantly driven by decreases in the electric ity grid intens it ies in the markets where funded properties are located. This follows our belief that energy decarbonisat ion, wh ich we are actively persuing through our power target, has posit ive downstream impacts on other sectors. In addit ion to th is, there has been some change in the location mix of our portfolio as a whole, with an increase in exposure to build ings located in European countries which have lower-intens ity electr ic ity grids, and a relative decrease in exposure to higher-intens ity locations in ASEAN markets. We continue to work with our clients to ﬁnance new and energy efﬁcient bu ild ings, but also w ith power companies in their energy supply decarbonisat ion, wh ich in turn beneﬁts the commercial real estate portfolio intens ity. On track 85 Standard Chartered – Annual Report 2024 Sustainab il ity review Oil and gas Power Balance in scope Interim target Performance versus baseline $6.4bn 9.3 MtCO 2 e -28% Sector background The oil and gas sector’s production emiss ions ( i.e., operations) account for approximately 15 per cent (IEA Emiss ions from O il and Gas Operations in Net Zero Transit ions 1 ) of global energy- related emiss ions, respect ively. Approach to achiev ing net zero targets • Reducing Scope 1 and 2 production-based emiss ions through improvements in operational efﬁc iency, reduc ing methane leakages, venting and ﬂaring • Encouraging investment in CCUS • Encourage and funding our clients’ evolution to greater gas business, includ ing l iqu id natural gas (LNG) term inals and renewables portfolios to supplement their exist ing o il business. Baseline target and portfolio progress 2020 to 2030 Portfolio progress IEA NZE Baseline 10.3 9.4 10.2 9.3 2020 16 14 12 10 8 6 4 2 0 Absolute ﬁnanced emiss ions (MtCO 2 e) 21 22 23 24 25 26 27 28 29 2030 13.1 -29% Progress in the year The oil and gas portfolio emiss ions have decreased 9 per cent year-on-year from 10.3 MtCO 2 e to 9.4 MtCO 2 e. The portfolio exposure also decreased by 9 per cent from the prior year, driv ing down absolute emiss ions in the sector. This has also been driven by a decrease in short-term trade funding and greater lending to lower carbon intens ive cl ients and technologies such as standalone LNG facil it ies. We are encouraged to see improved methane abatement practices from our clients, continued investment in renewable portfolios and carbon capture technologies being brought forward for funding which we are increas ingly prov id ing. Balance in scope Interim target Performance versus baseline $5.2bn 0.17 – 0.28 tCO 2 /MWh -17% Sector background The electric ity and heat sector contr ibuted 40 per cent towards global GHG emiss ions per IEA WEO, 2024. It is projected that global electric ity demand w ill continue to rise especially in emerging markets and developing economies. Approach to achiev ing net zero targets • Mobil is ing lending towards renewable energy and other low carbon power plant projects • Encouraging our clients to invest in renewable energy sources to divers ify the ir generation mix • Partic ipat ing in JETPs to encourage our clients to decarbonise their power supplies • Funding coal phase out in line with the IEA NZE pathway Baseline target and portfolio progress 2021 to 2030 0.52 0.47 0.43 0.28 0.17 2021 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.05 0.10 0.15 Emiss ion intens ity (tonnes of CO 2 by megawatt hour) 23 24 22 25 26 27 28 29 2030 Portfolio progress IEA APS IEA NZE Baseline -46% to -67% Progress in the year The power portfolio intens ity is down 9 per cent year-on-year from 0.47 tCO 2 /MWh to 0.43 tCO 2 /MWh with an increase in exposure of 6 per cent. Sign iﬁcant movements in portfolio intens ity included: • Decreases in thermal coal power generation in the book due to reducing exposures to coal power generation sources as balances mature in line with contractual maturit ies and as mandated by our Posit ion Statements on thermal coal • Increased lending to renewables projects and lower intens ity gas projects which continue to make up a greater proportion of the ﬁnanced power portfolio • Increases in lending to counterparties that had higher percentages of nuclear and renewable generation There is further a strong pipel ine of lower- intens ity gas, power plants and renewables projects due to start operations in the future that are currently being funded. 1 Oil and gas sector operational emiss ions contr ibut ion to global energy- related emiss ion per the IEA’s ‘Em iss ions from o il and gas operations in Net Zero Transit ions’ publ icat ion released in 2023 On track 86 Standard Chartered – Annual Report 2024 Sustainab il ity review Shipp ing Steel Balance in scope Interim target Performance versus baseline $4.6bn 0% delta -4% Sector background Shipp ing is key to facil itat ing global trade. The sector contributes 2 per cent of global energy-related emiss ions per IEA WEO, 2024. The sectoral emiss ions predom inantly arise from the combustion of fuel in ships’ engines. Approach to achiev ing net zero targets • Engaging clients to invest in low carbon alternative fuels and carbon capture technology to eventually achieve net zero emiss ions • Financ ing new and more fuel-efﬁcient sh ips • Provid ing trans it ion ﬁnance for dual fuel sh ips • Holding clients accountable for efﬁc ient em iss ion pract ices such as sail ing at eco speed Baseline target and portfolio progress 2021 to 2030 +7.3% +11.8% +3.2% 2021 1 0.8 0.6 0.4 0.2 0.0 Relative emiss ions intens ity (gCO 2 e/dead weight tonne per nautical mile) 23 24 22 25 26 27 28 29 2030 Portfolio progress IMO Revised Min imum IMO Striv ing Baseline Progress in the year During the year the alignment delta for the shipp ing sector improved sign iﬁcantly from 11.8 per cent to 3.2 per cent aga inst the revised min imum scenar io bring ing the Group closer to its 0 per cent alignment delta target by 2030. Improvements in our alignment delta were posit ively impacted by the introduct ion of the CII regulat ion during 2023. CII is an operational efﬁc iency measure wh ich requires ships to report their carbon efﬁciency w ith an associated rating of A to E. Vessels require a rating of C- or better to avoid potential dis incent ives. Decarbonisat ion is the next frontier for pric ing in shipp ing ﬁnance. Margins are no longer driven by risk versus reward, but also by balancing climate alignment of both the company and the asset into the equation. The Group continues to ﬁnance both dual fuel and newer ships that are more energy efﬁcient, w ith a focus on our clients setting credible transit ion plans w ith ambit ious targets. Looking ahead, we are keen to observe the impact of the EU Emiss ions Trad ing System (ETS) coming into effect in 2024, especially for our clients who actively engage in European trade and see how a carbon tax mechanism translates into next year’s Poseidon reporting. Balance in scope Interim target Performance versus baseline $0.5bn 1.4–1.6 tCO 2 /tonne steel -9% Sector background Steel is a crit ical mater ial. It is essential to the function ing of the global economy, from the production of the world’s vehicles and household appliances to build ings and infrastructure. As such, the steel sector is the largest source of industr ial em iss ions and accounts for roughly 7 per cent of global emiss ions per IEA WEO, 2024. Approach to achiev ing net zero targets • Increasing client renewable electric ity usage for electr ic arc furnace production • Increased scrap steel uptake through trade ﬁnance or use of proceeds ﬁnance • Increased scrap collection and processing in local economies • Increased operational efﬁc ienc ies to exist ing Blast Furnaces and Basic Oxygen Furnaces (BF-BOF) Baseline target and portfolio progress 2021 to 2030 2.06 1.97 1.87 1.6 1.4 2021 2.15 2.05 2.10 2.00 1.95 1.90 1.85 1.80 1.75 1.30 1.35 1.40 1.45 1.50 1.55 1.60 1.65 1.70 Emiss ion intens ity (tCO 2 / tonne crude steel) 23 24 22 25 26 27 28 29 2030 Portfolio progress MPP TM regional MPP TM Baseline -22% to -32% Progress in the year The steel sector emiss ion intens it ies for the Group’s portfolio have reduced by 5 per cent year-on-year from 1.97 tCO 2 /tonnes steel to 1.87 tCO 2 /tonnes steel. This was driven by increas ing lending to clients util is ing scrap steel, as opposed to those util is ing iron ore in blast furnaces. We further noted and are actively pursuing funding an increased uptake of scrap steel use from some of our primary steel producers, which will reduce their production intens it ies. This is due to more steel output produced using electric ity rather than the burning of coal and gas to steel from iron ore. The Group has also collected better informat ion for the portfol io with fewer proxy-based emiss ions reported result ing in a better portfolio intens ity. On track 87 Standard Chartered – Annual Report 2024 Sustainab il ity review Thermal Coal Min ing Resident ial Mortgages Balance in scope Interim target Performance versus baseline $0.03bn 0.5 MtCO 2 e -64% Sector background The burning of coal is one of the most sign iﬁcant dr iv ing factors in climate change. To reﬂect this, the Group has a thermal coal Posit ion Statement proh ib it ing the provis ion of ﬁnancial serv ices to certain clients dependent on thermal coal. Emiss ions ar ise as Scope 1 and 2 emiss ions for coal producers (from energy used in the min ing process) as well as Scope 3 emiss ions from end-of-use products, be ing the burning of coal in upstream processes. Approach to achiev ing net zero targets • Rundown of thermal coal exposures in line with contractual commitments • Offboarding of clients in line with the Group’s thermal coal Posit ion Statement • Partic ipat ing in our JETPs to encourage our clients to decarbonise their power supplies Baseline target and portfolio progress 2020 to 2030 3.3 1.6 2.3 1.2 0.5 2020 3.5 2.5 3.0 2.0 1.5 0.5 1.0 0 Absolute ﬁnanced emiss ions (MtCO 2 e) 23 24 21 22 25 26 27 28 29 2030 Portfolio progress IEA NZE Baseline -85% Progress in the year Thermal coal absolute emiss ions have decreased by 25 per cent from 1.6 MtCO 2 e to 1.2 MtCO 2 e. This was due to the portfolio continu ing to be pa id down in line with maturit ies, w ith no new loans issued during the period due to the Group’s Thermal Coal Posit ion Statement, wh ich does not allow lending to counterparties that are 80 per cent thermal coal revenue reliant. Please see the Group’s Posit ion Statements for further deta ils at sc.com/posit ionstatements Balance in scope Interim target Performance versus baseline $68.4bn 29-32 kgCO 2 e/sq.m -4% Sector background Resident ial hous ing contributed 5 per cent towards global emiss ions per IEA WEO, 2024. The res ident ial hous ing sector emiss ions are pr imar ily from two sources: the operat ion of the build ing and embod ied emiss ions (wh ich are emiss ions related to its construction). Approach to achiev ing net zero targets • Increase lending to clients to improve energy efﬁc iency through retroﬁtting and improvement of insulat ion, ventilat ion, and energy management • Collecting specif ic un it or build ing em iss ions data w ith in the portfolio, which reduces the need to use proxy data and increases emiss ion accuracy • Engaging with clients to decarbonise their electric ity supply; for instance, through the direct purchase of green electric ity or green certif icates Baseline target and portfolio progress 2021 to 2030 37.6 37.7 36.04 32 29 2021 40 35 30 25 20 15 10 5 0 Emiss ion intens ity (kgCO 2 e/sq.m ﬂoor area) 23 24 22 25 26 27 28 29 2030 CRREM Baseline 2030 target (lower bound) 2030 target (upper bound) -15% 23% Progress in the year During the year, the Group measured its 2023 progress of GHG emiss ions from the four ma in resident ial mortgage portfol ios, namely Hong Kong, South Korea, Singapore and Taiwan, accounting for approximately 88 per cent of the Group’s exposure. A physical intens ity of kgCO 2 e/sq.m is the metric used to measure the portfolio’s progress. While we have set a single Group-level target, the very nature of the resident ial real estate market means all decarbonisat ion act ions will take place at the local level. Achiev ing our target is dependent on actions by local governments and power companies decarbonis ing power generation. The target range has been set at the more ambit ious end of the publ ic commitments made by governments and power companies in the countries where the Group operates. These targets have been benchmarked to , and currently sit above, the global CRREM pathway to 2030. The portfolio intens ity has decreased 4 per cent as we start to see the emiss ion intens ity of power gr ids in these regions beginn ing to decrease in line with our expectations. On track 88 Standard Chartered – Annual Report 2024 Sustainab il ity review Facil itated em iss ions Sector 1 Interim 2030 target Weight ing 2023 MtCO 2 e 2022 MtCO 2 e Baseline MtCO 2 e Baseline year Target set year % change cumulative to baseline Oil and gas 2.94 MtCO 2 e (26.9%) 100% weight ing factor 2 1.76^ 3.01 4.02^ 2021 2024 -56% 33% weight ing factor 2 0.58 0.99 1.33 Values noted with a caret symbol (^) are subject to independent lim ited assurance by EY. The report is available at sc.com/sustainab il ityl ibrary Sector Emiss ion approach Scenario Value chain Scope of emiss ions 2023 PCAF score 2022 PCAF score In scope exposure coverage Oil and gas Absolute emiss ions IEA NZE Upstream, midstream and downstream 1, 2 2.9 3 2.6 3 92% 3 3.0 4 3.0 4 Oil and gas Value facil itated 5 Interim target $0.77bn 2.94 MtCO 2 e Progress in the year During the year, a baseline and target were measured for the oil and gas sector. A reduction target of 26.9 per cent from a 2021 baseline was set based on the IEA NZE scenario in line with ﬁnanced emiss ions. Emiss ions assoc iated with facil itat ion trended down between 2021 to 2023 as bond underwrit ing volumes were low due to COVID and higher corresponding interest rates. Baseline target and portfolio progress 2021 to 2030 Portfolio progress IEA NZE Baseline 4.02 1.76 3.01 2.94 2021 6 4 2 0 Absolute facil itated em iss ions (MtCO 2 e) 22 23 24 25 26 27 28 29 2030 -27% 1 The metric and target are based on the rolling 3 year average due to the cyclical nature of bond underwrit ing in the market 2 Emiss ions have been d isclosed on a 100 per cent and 33 per cent weight ing 3 PCAF score for Scope 1 and 2 emiss ions 4 PCAF score for Scope 3 emiss ions 5 Value facil itated is equal to the Group’s share of the Bond notional per the league table where we act as a bookrunner on the deal. Facil itated value shown for the 2023 ﬁnancial year 89 Standard Chartered – Annual Report 2024 Sustainab il ity review Climate risk An environmental (such as climate), social or governance event, or change in condit ion, if it occurs, could result in actual or potential ﬁnanc ial loss or non-ﬁnancial detr iments to the Group. As such, Climate Risk is ident iﬁed as a mater ial risk for the Group, which is integrated across relevant Princ ipal R isk Types (PRTs) and is managed via the Environmental, Social, Governance and Reputational (ESGR) Risk policy framework. The Group is exposed to Climate Risk through our clients, own operations, vendors, and from the industr ies and markets in which we operate in. We manage Climate Risk according to the characterist ics of the impacted PRTs. Risk Framework Owners for the impacted PRTs are responsible for embedding Climate Risk requirements with in the ir respective risk types. Our Climate Risk Appetite Statement is approved annually by the Board and supported by Board Risk Appetite metrics (BRAMs) and Management Team Lim its (MTL) across impacted risk types. In 2024, we have continued to embed Climate Risk into exist ing r isk management frameworks and processes. We have also published our Transit ion Plan, wh ich articulates how we plan to manage Climate Risk by aim ing to del iver on our commitments to reach net zero emiss ions in our ﬁnanced emiss ions by 2050, and in our Scope 1 and 2 emiss ions by 2025. Short-term 0– 2 years • Our short-term time horizon aligns with our aim: – To be net zero in our Scope 1 and 2 emiss ions by 2025 – To scale annual sustainable ﬁnance income to at least $1 bill ion by 2025 • In line with the Group’s operational net zero target, we set year-on-year improvement targets for our footprint markets. Climate Risk is considered as part of our formal annual corporate strategy and ﬁnancial plann ing process. Medium-term 2 – 5 years • Our medium-term time horizon aligns with our inter im 2030 targets set for our 12 highest-emitt ing sectors and our comm itment to mobil ise $300 b ill ion of sustainable ﬁnance by 2030. • Our strategic and ﬁnanc ial plann ing constitutes action plans that intend to enable us to align to our net zero targets. We also use scenario analysis to consider how risks and opportunit ies may evolve under d ifferent situat ions in the medium-term. Long-term 5+ years • Our long-term time horizon aligns with our aspirat ion to ach ieve net zero in our ﬁnanced emiss ions by 2050. • For climate scenario analysis, we run 30-year scenarios for both physical risk and transit ion r isk, with some elements of our physical risk scenario analysis extending to 2100. • Transit ion r isk as our clients move to lower emitt ing revenues by v irtue of legislat ion is considered with reference to client transit ion pathways and manifests over a longer term than the maturity of the loan book up to 2050. We consider physical and transit ional cl imate-related risk impacts in relation to our Wealth & Retail Banking and Corporate & Investment Banking client segments, as well as in our own operations. Please refer to page 21 for further informat ion relat ing to our client segment risks, and page 264 for risks ident iﬁed in our own operations. For further informat ion on how we deal w ith Climate Risk, please refer to the Risk review on pages 256 to 269 For our approach to managing Climate Risk through transit ion plann ing, refer to our Transit ion Plan at sc.com/transit ion-plan For our TCFD disclosures, refer to the TCFD reporting index with in the Strateg ic report on pages 43 to 44 Time horizons used to assess the likel ihood and impact of climate-related risks and opportunit ies The time horizons that we use to ident ify, assess and manage our ident iﬁed cl imate-related risks and opportunit ies are as follows: 90 Standard Chartered – Annual Report 2024 Sustainab il ity review Nature Mobil is ing ﬁnance for nature-posit ive outcomes • Closed the Group’s ﬁrst debt conversion for nature project with The Government of The Bahamas, unlocking $124 mill ion in savings for marine conservation. The savings will support The Bahamas in effectively managing its extensive network of marine protected areas (MPAs), complete a national Mangrove Management Plan, and develop and implement a Marine Spatial Plan. We were the sole arranger, underwriter and liab il ity manager. • Expanded the Group’s 2024 GSPF to include addit ional nature-related act iv it ies informed by the GBF. • Published our latest sustainab il ity research, ‘Towards a sustainable ocean: where there’s a will, there’s a wave’, highl ight ing opportunit ies for ﬁnancing the nature-pos it ive trans it ion of the blue economy. • Refer to the work done by our Nature Finance Innovation Hub on page 68 for more informat ion. Understanding the material ity of nature loss on the Group’s activ it ies • Established a Nature Risk working group, compris ing of cross-funct ional teams, to advance our Nature Risk analysis, leveraging our climate risk data to support more in-depth analysis of potentially material sectors and assess our ﬁnanced assets exposure to nature impacts and dependencies. • Undergoing assessment of the material ity of our own operat ions’ impacts and dependencies on nature. • Exploring ways to min im ise the environmental impact of our operations by reducing energy, GHG emiss ions, water usage and non-hazardous waste generated in our operations (refer to page 77 for details). • Set out the expectations of our suppliers to reduce waste from their operations, through our Supplier Charter includ ing manag ing environmental concerns in their own supply chains, and protecting the environment and conserving natural resources, in compliance with all applicable environmental laws and regulations. • Conducted an internal research project to better understand the Group’s potential exposure to the proceeds of illegal deforestation and how the risk of illegal deforestation may manifest in our clients’ supply chains. Supporting collective action to address nature loss and ecosystem decline • Engaged with market in it iat ives and ﬁnancial regulators to advance the nature ﬁnance ecosystem. This includes our memberships in the UN Environment Programme Finance Init iat ive and Princ iples for Responsible Banking, Singapore Sustainable Finance Associat ion Natural Cap ital and Biod ivers ity Workstream, African Natural Capital Alliance, Green Finance Institute’s TNFD UK Consultation Group, WEF Biod ivers ity Credit Init iat ive, and the Global Islamic Finance Program. • Specif ic focus on advanc ing the sustainable blue economy through continued engagement with the Ocean Risk and Resil ience Act ion Alliance, the UN Global Compact Ocean Investment Protocol Steering Committee and the WWF Seafood Finance Working Group. • Contributed to nature ﬁnance related white papers from World Economic Forum 1 , Climate Financ ial R isk Forum 2 , Cambridge Institute for Sustainab il ity Leadership 3 , and the Institute of International Finance 4 . Build ing internal capacity • Provided nature-related train ing to the Culture and Susta inab il ity Board Committee as well as to internal functions, i.e. Climate Risk Analysts, Environmental and Social Risk Management (ESRM), ESGR and WRB. • Expanded exist ing Nature R isk capabil ity, w ith the hire of a Nature Risk Lead to further embed nature into our risk polic ies, procedures, frameworks, and d isclosures (refer to page 68 for details); and to inform client nature-posit ive trans it ion opportun it ies. 1 ‘Nature Finance and Biod ivers ity Credits: A Private Sector Roadmap to Finance and Act on Nature’, World Economic Forum, October 2024 2 ‘Nature-related risk: Handbook for ﬁnanc ial inst itut ions’, Climate Financ ial R isk Forum, October 2024 3 ‘Scaling Finance for Nature: Barrier Breakdown’, Cambridge Institute for Sustainab il ity Leadership, October 2024 4 ‘Responding to Nature-related Risks and Opportunit ies’, Inst itute of International Finance In 2024, we published our inaugural Nature Posit ion Statement outlin ing our approach to nature across our bus iness, our clients, operations and supply chains. We seek to contribute to the GBF 2030 miss ion of halt ing and reversing nature loss by: (1) continu ing to integrate nature in decis ion-mak ing with in our bus iness (target 14); (2) publish ing nature-related disclosures in alignment with TNFD recommendations from 2026 onwards (target 15); and (3) shift ing ﬁnancial ﬂows toward nature- posit ive outcomes and contr ibut ing to mobil is ing funding for nature and delivery of the GBF (target 19). We are members of a wide range of industry platforms working to increase industry awareness of the relevance of nature considerat ions to ﬁnancial dec is ion- making. Our progress on nature The in it iat ives below represent the key h ighl ights of the work undertaken in 2024 in relation to nature. It is estimated that over half of global GDP is directly dependent upon nature. Despite this, nature is rapidly declin ing. At Standard Chartered, we acknowledge that protect ing nature is essential to lim it ing global warming and mit igat ing the effects of climate change, so that the planet can sustain livel ihoods as well as support inclus ive susta inable economic development. For a full list of our memberships and engagements vis it sc.com/sustainab il itystakeholders Our Supplier Charter can be viewed at sc.com/suppliercharter Our Posit ion Statements are ava ilable at sc.com/posit ionstatements Read our blue economy research paper at sc.com/blue-economy More informat ion about the debt convers ion for nature for the Bahamas is available at sc.com/en/campaigns/bahamas-debt-for-nature 91 Standard Chartered – Annual Report 2024 Sustainab il ity review Social impact We believe in the power of ﬁnance to drive posit ive change in the world. Our desire to drive social impact extends across both our commercial and our philanthrop ic act iv it ies, reﬂecting our aspirat ion to bu ild a future that is both ﬁnanc ially res il ient and soc ially inclus ive – th is being a foundation for healthy and sustainable economies in our markets. We approach social impact from two angles concurrently: • Through our business and clients: we provide clients with the ﬁnanc ing that they and the ir communit ies need to tackle urgent matters such as inequal ity, access to essential services, and inclus ive growth. • Through our philanthrop ic commun ity engagement: we work to empower disadvantaged young people by provid ing them w ith skills and networks and connecting them with employment and commercial opportunit ies. The combinat ion of these efforts underscores our hol ist ic approach to creating long-term value for our clients, colleagues and communit ies. By integrat ing both commerc ial and philanthrop ic asp irat ions to support our susta inab il ity work and our Stands, we aim to accelerate our progress and amplify posit ive soc ial impact such as women’s empowerment and ﬁnancial inclus ion. Our commercial activ it ies: investment in social ﬁnance We seek to partner with our clients and communit ies to mobil ise soc ial capital. Last year, we deepened our focus on mobil is ing social ﬁnance by appoint ing the Group’s ﬁrst Head of Social Sustainab il ity. Empowering women-owned businesses Women are key drivers of economic and social progress, yet they continue to face sign iﬁcant challenges that often lim it the ir full partic ipat ion in the global economy. These challenges include systemic barriers such as unequal access to education, lim ited access to ﬁnance and ﬁnancial resources, and entrenched discr im inatory social norms. As part of our business, we provide women and women- owned businesses with the ﬁnanc ing they need. A cornerstone of our commitment is our SC Women’s International Network (SC WIN) banking proposit ion, a un ique offering designed exclusively for women-owned businesses, that offers tailored ﬁnancial solut ions, expert advisory services, and access to a global network of like-minded business leaders. Since its ﬁrst launch in 2022, SC WIN has expanded its reach and is now live in seven markets, namely India, Kenya, Malaysia, Singapore, Hong Kong, Vietnam and Pakistan. SC Win has extended more than $300 mill ion of ﬁnancing to women-owned businesses since its ﬁrst launch in November 2022. To further our support, we launched a partnership with We Connect International, an organisat ion focused on helping women-run companies to get into global supply chains. Despite corporate commitments, less than 1 per cent of all global procurement goes to women-owned companies, and this number hasn’t changed in decades 1 . Through our partnership, we aim to support women-owned companies with the access to ﬁnance that they need to compete for large global contracts. By bring ing together our global trade bank with our SC WIN offerings, we aim to support women-owned business with both the short-term working capital solutions and the long-term ﬁnancing opt ions that they need. This year, we became the ﬁrst global bank to sign the WE Finance Code under the Women Entrepreneur Finance Init iat ive across all of our banking centres. As signator ies, we aim to sex-disaggregate our own lending, and intend to work throughout the ecosystem to share knowledge with our peers. Supporting micro lending We recognise the pivotal role of microlend ing in fostering economic inclus ion and susta inable development. Microlend ing plays a v ital role across our footprint in supporting underserved communit ies and creat ing opportunit ies for growth. S ince 2006, we have ﬁnanced microf inance partners in India, Bangladesh, Phil ipp ines, Nepal, Pakistan, Kenya, Uganda, Tanzania and Niger ia. In 2024, we supported more than $725 mill ion lend ing to microf inance inst itut ions, enabling over 1.2 mill ion borrowers to access loans. These loans support a wide range of needs, from build ing small businesses to covering education costs or managing unexpected emergencies. Our philanthrop ic act iv it ies: investment in community impact Our philanthrop ic approach a ims to help bridge the often- sign iﬁcant gap that prevents young people from access ing commercial products and services. Through community partnerships, client partnerships and employee volunteering, we aim to contribute towards more inclus ive econom ies and increased equitable prosperity. Central to this effort is our global youth economic empowerment in it iat ive, Futuremakers by Standard Chartered, which aims to help disadvantaged young people, especially young women, access economic opportunit ies through employab il ity and entrepreneursh ip support. From 2019 to 2024, through Futuremakers, we supported more than 53,000 young people to access decent jobs and enabled more than 35,000 jobs through supported microbus inesses. We continue to deepen and scale our impact, working with leading NGO partners to deliver longer-term programmes. Between 2024 and 2030, we aim to provide $120 mill ion in Futuremakers with the intent to enable and support 140,000 decent jobs 2 , includ ing 70,000 jobs accessed by young female partic ipants 3 and 70,000 jobs created through supported microbus inesses 4 . 1 ‘Procurement’s strategic value: Why gender-responsive procurement makes business sense.’ UN Women, 2022 2 Decent jobs/employment comprises formal employment and self-employment. ‘Decent’ aligns with the ILO deﬁn it ion, but in recognit ion of the challenges in many markets to satisfy every criter ia for ‘decent’, our Futuremakers in it iat ive counts those part ic ipants who have met m in imum wage plus at least two add it ional ILO criter ia 3 Young female partic ipants rema in in decent employment six months post intervent ion 4 Direct jobs comprise paid employment opportunit ies (d irect employees, active associates, contractors, support/gig workers, and the entrepreneurs themselves) directly created by the supported microbus inesses. These may be part-t ime or full-time, with each job accounted for as a single unit. This KPI will be based on actual data collated from project alumni over the seven year period, robust estimates based on empir ical research, and ex-post project evaluat ions. 92 Standard Chartered – Annual Report 2024 Sustainab il ity review In 2024, we have enabled and supported 20,675 decent jobs 1 and contributed $18.4 mill ion to Futuremakers, includ ing donations from the Group and fundrais ing of $2.2 m ill ion from our employees and partners. Creating an inclus ive ecosystem for decent work Almost 60 per cent of young people not in employment, education or train ing (NEET) are in the Group’s markets, with young women twice as likely as young men to be NEET 2 . Our Futuremakers employabil ity programmes pr ior it ise these disadvantaged groups, especially women and people with disab il it ies, support ing them to gain the skills and networks to access decent jobs. This year, with the Standard Chartered Foundation, we have launched three-year employabil ity programmes w ith strategic NGO partners, includ ing the launch of the sports-based Goal Accelerator programme in ﬁve markets – Malaysia, Maurit ius, Pakistan, Sri Lanka and the UK, in partnership with Women Win. The programme aims to empower over 1,700 young women with the life-skills, conﬁdence and leadership capabil it ies to enable them to access employment, generate a decent income and become economically resil ient. To improve employabil ity for people w ith disab il it ies v ia Futuremakers, we established a disab il ity inclus ion roadmap with Sightsavers, one of our strategic NGO partners, to test innovat ive models in Ghana, Kenya, Pakistan, Tanzania, Uganda, and Zambia. This in it ial roadmap will provide ins ights to gu ide us in facil itat ing disab il ity inclus ion in all our programmes. Through these and other investments, in 2024, over 24,000 partic ipants (58 per cent women and 9 per cent people w ith disab il it ies) have establ ished an employment plan, a key early milestone in their employabil ity journey. In some of our markets, we support community healthcare, climate, education and agricultural livel ihood projects. In 2024, for example, we supported eye health, WASHE (water, sanitat ion and hyg iene education), education and youth employabil ity projects in India, includ ing the open ing of the fourth academy to promote primary eye care and train women to become optometrists. Unlocking the potential of microbus inesses Research by the International Finance Corporation suggests that there is a $173 bill ion ﬁnancing gap for female microbus inesses in lower and middle-income countries 3 . Our Futuremakers entrepreneurship programmes support young entrepreneurs, mainly women, to achieve business growth, build green and social microbus inesses, and create much needed jobs in their communit ies. Through the Futuremakers Women in Tech accelerator, we enabled female microentrepreneurs in Africa, the Middle East and the US to acquire the skills, resources, and networks they need to start and grow their businesses. We have committed $600,000 as part of a catalytic ﬁnanc ing fund to support eight high-potential tech-enabled businesses run by our Women in Tech alumni. In 2024, with the Standard Chartered Foundation, we have launched three-year entrepreneurship programmes with our strategic NGO partners and supported more than 14,000 microbus inesses to establ ish a business growth plan, a key milestone in their entrepreneurship journey. Measuring broader societal impact To better understand the broader impact of our Futuremakers investments, we have developed a refreshed approach to impact measurement that builds on the direct outcomes of our programmes to quantify the broader contribut ion to society. Using the model, and applying the results achieved in 2024, we found that more than 110,000 lives are estimated to have been impacted by Futuremakers. We antic ipate that the ins ights from th is analysis should enable us to optim ise how we allocate Futuremakers resources to enhance impact potential, as well as extend our learnings to our peers and partners. Promoting skills-based volunteering We have also sought to scale the impact of volunteering by strengthening skills-based volunteering. In 2024, 53 per cent of colleagues volunteered to support various philanthrop ic causes and 114,276 hours were contributed to skills-based volunteering which ranged from provis ion of ﬁnancial education to local schools to coaching and mentoring Futuremakers partic ipants. In 2025, we a im to further embed skills-based volunteering opportunit ies into Futuremakers, leveraging our colleagues’ unique skill sets to further deepen our community impact. Charitable giv ing 2024 $mill ion 2023 $ mill ion 2022 $mill ion Cash contribut ions 47.9 31.2 23.7 Employee time (non-cash item) 25.7 28.7 17.5 Gifts in-kind (non-cash item) 4 0.5 0.4 0.3 Management costs 5.2 5.4 5.0 Total (direct contribut ions by Group) 79.3 65.7 46.5 Leverage 5 2.7 2.9 4.8 Total (includ ing leverage) 82.0 68.6 51.3 Percentage of prior year operating proﬁt (PYOP) 1.6 1.6 1.5 1 The data includes 7,425 young female partic ipants in decent employment, where partic ipants rema in in decent employment six months post intervent ion, and 13,250 direct jobs enabled by supported microbus inesses 2 ‘Global Employment Trends for Youth 2022: Investing in transforming futures for your people.’ Geneva: ILO, 2022 3 ‘MSME Finance Gap Report’, International Finance Corporation, 2017 4 Gifts in-kind: In-kind contribut ions of products, property or serv ices valued at the cost to the Group 5 Leverage: fundrais ing from employees and partners beneﬁtting the commun ity 93 Standard Chartered – Annual Report 2024 Sustainab il ity review Our cross-sector Environmental and Social Risk Management (ESRM) Framework helps us apply internat ional standards and best practices across all our markets. In the frontline, our ESRM team with in the CSO organ isat ion oversees the management of environmental and social risks associated with our client relationsh ips. For further informat ion please refer to our ESRM Framework at sc.com/esriskframework Our approach is embedded into our credit approval process and supports us to work with our stakeholders to ident ify, manage, mit igate and mon itor the potential impacts that stem from our ﬁnancing dec is ions. Our Posit ion Statements, approved by the GRRRC, outl ine the cross-sector and sector-specif ic cr iter ia we apply to assess whether to provide ﬁnanc ial serv ices to our clients. We use these statements – which draw on International Finance Corporation Performance Standards, the Equator Princ iples and global best pract ice – to assess environmental and social risk related to our ﬁnanc ing. We reviewed 1,449 clients and 747 transactions that presented potential for elevated environmental and social risk in 2024. If we ﬁnd a material environmental and social issue, we take steps to proactively engage the client to mit igate ident iﬁed risks and impacts, and support and guide our clients to improve their environmental and social performance over time. However, for clients who do not meet our Posit ion Statement criter ia, we may look to w ithdraw ﬁnanc ial serv ices and exit the relationsh ip if we cannot work with them to align over an agreed time frame. In 2024, we completed the review and update of our Human Rights Posit ion Statement. During the year, we evolved our approach to Nature Risk assessment. This included a loan book analysis to ident ify nature-related impacts and dependencies at sector, country and ﬁnancial serv ices levels. The Group’s cross-sector Nature Posit ion Statement prov ides a consolidated view of our approach to managing Nature Risk across our business, operations and supply chain. Further informat ion can be found on page 90 of this report Read more about our Posit ion Statements at sc.com/posit ionstatements Our list of Prohib ited Act iv it ies can be found at sc.com/prohib itedact iv it ies Our reporting against the Equator Princ iples can be found at sc.com/equatorprinc iples and in our ESG data pack at sc.com/esg-data-pack Managing Environmental and Social Risk Posit ion Statements Cross-sector Posit ion Statements Prohib ited Act iv it ies Sector-specif ic Pos it ion Statements Climate Change Agribus iness Infrastructure and Transport Human Rights Chemicals and Manufacturing Power Generation Nature Extractive Industries Thermal Coal We seek to proactively manage environmental and social risks and impacts aris ing from the Group’s client relationsh ips and transact ions. Posit ion Statements 94 Standard Chartered – Annual Report 2024 Sustainab il ity review Respecting human rights We are committed to respecting human rights across our business. We recognise that the global nature of our business may expose us to the risk of modern slavery and human trafﬁcking in our operations, supply chain and client relationsh ips and we are comm itted to managing and mit igat ing these risks. Our Modern Slavery Statement details our approach and actions to manage modern slavery risks across our value chain. Read our Modern Slavery Statement at sc.com/modernslavery Our Posit ion Statement on Human R ights is a key part of our ESRM framework and was developed following engagement with a range of internal and external stakeholders, includ ing expert practit ioners and c iv il soc iety organisat ions. L ike our cross-sector Posit ion Statements, the Human R ights Posit ion Statement applies to our clients, suppliers and employees and is regularly reviewed to ensure it addresses emerging risks and issues. Due dil igence is a central part of our approach in assessing and managing risks associated with the provis ion of ﬁnancial services to our clients. We approach this due dil igence in accordance with our ESRM and Financ ial Cr ime Compliance (FCC) frameworks. Read more about our ESRM Framework and Posit ion Statements at sc.com/posit ionstatements We will not enter into relationsh ips w ith suppliers involved in human trafﬁcking, modern slavery or forced labour. Suppl iers that are ident iﬁed as present ing higher risks of modern slavery are subject to due dil igence. Our Suppl ier Charter sets out the princ iples for the behav ioural standard that Standard Chartered expects from its suppliers, and those with in a supplier’s sphere of inﬂuence that assist them in performing their obligat ions to us. Read our Supplier Charter at sc.com/suppliercharter Our Fair Pay Charter sets out the princ iples by wh ich we seek to deliver fair and competit ive remunerat ion to all employees. We use these princ iples to gu ide reward and performance decis ion-mak ing globally, includ ing how we set, structure and deliver remuneration. Further informat ion on our al ignment to the Fair Pay Charter can be found on page 144 of this Annual Report and in our 2024 Divers ity, Equal ity and Inclusion Report available at sc.com/divers ityfa irpayreport 95 Standard Chartered – Annual Report 2024 Sustainab il ity review Integrity, conduct and ethics Managing Conduct Risk is crit ical to del iver ing pos it ive outcomes for our clients, markets and stakeholders and fundamental to achiev ing our brand prom ise, here for good. Conduct Risk may arise anywhere in the Group at any time. The Group therefore expects all employees to be responsible for managing Conduct Risk given it is a transversal risk, which means it impacts every aspect of the Group’s operations. Our Group Conduct Risk Management Standard sets min imum standards for the management of Conduct R isk across our operations. The Group employs a risk-based, three lines of defence approach to Conduct Risk Management, where oversight, governance and controls are proportionate to our assessment of the risk. We set target conduct outcomes that the Group aspires to deliver for clients, external stakeholders, employees, and the environment. We aim to live our valued behaviours, which are ‘Never settle’, ‘Better together’ and ‘Do the right thing’ through our actions, decis ions and interact ions day-to-day w ith colleagues, clients and the markets we serve. Speaking Up Our Speaking Up Programme provides a safe, independent and conﬁdential way to report wh istleblow ing concerns. It is aimed at helping to build and mainta in a strong eth ical culture, with integr ity, trust, and transparency. The early disclosure of concerns reduces the risk of ﬁnanc ial and reputational loss caused by misconduct. We encourage colleagues, contractors, clients, suppliers and members of the public to raise concerns through the Speaking Up channels. These channels enable whistleblow ing concerns to be ra ised in various ways, such as via email, a web portal, a telephone hotline (where available), or by speaking to someone in their line management, who may or may not be their usual People Leader (available for employees only). When a concern is raised, our Shared Investigat ive Serv ices team will determine whether the matter is a Speaking Up disclosure or if it is an out-of-scope disclosure. Throughout 2024, we hosted a series of awareness campaigns to ensure that we continue to create an environment where everyone feels secure and empowered to speak up. The Global Conduct Week was held from 24 to 28 June, themed ‘A Code to live by’, to celebrate good conduct, reinforce our valued behaviours and promote the importance of ethics, trust and integr ity. All interact ive panels were a imed to encourage colleagues to think about how their decis ions and ind iv idual actions on a daily basis can aggregate to a much wider impact on outcomes for our clients, customers and other stakeholders. We marked the World Whistleblowers Day as part of the Conduct Week, where a panel discuss ion was held w ith the Group Independent Non-Executive Director and Whistleblow ing Champion. Colleagues were reminded about the Speaking Up channels and the key pillars of our Speaking Up Programme, namely: anonymity, conﬁdent ial ity and no vict im isat ion. The Speaking Up Programme continues to be util ised across all countries, businesses and functions, and our 2024 My Voice survey found that there continued to be a high degree of conﬁdence in the Programme. 87 per cent of employees felt comfortable rais ing concerns through the Speaking Up channels (88 per cent in 2023). Each year, the Board reviews a Speaking Up report, which provides an overview of the effectiveness of the Group Speaking Up Programme. For the period July 2023 to June 2024 there was a 1 per cent increase in disclosures volume compared to the prior 12 months. There was a 1 per cent decrease in the proportion of employees who opted to remain anonymous when reporting disclosures. 87 % of employees in our My Voice survey felt comfortable rais ing concerns through Speaking Up channels Vis it our Speak ing Up programme’s website sc.com/speakingup Code of Conduct and Ethics The Code of Conduct and Ethics (the Code) remains the primary tool through which we communicate our conduct expectations. It is aligned with our Stands, strengthening the link between ethics, culture, conduct and the Group’s strategy. The Code is intended to be more than a guidance document: rather, it is a code to live by, designed to guide colleagues through how to live our valued behaviours on a day-to-day basis, whatever their business, function, region or role. To guide us in liv ing conduct of the h ighest standards, the Code was shaped around 10 conduct outcomes we all strive to deliver, and connects these to our culture, behaviour, and ethics. The revamped Code e-learning was launched in April 2024. In June 2024, we celebrated Global Conduct Week. The event was about celebrating good conduct and seeing our Code in action. Download our Code of Conduct and Ethics at sc.com/codeofconductandethics and vis it sc.com/speakingup to ﬁnd more about how our Speaking Up programme works To reinforce our shared commitment to the highest possible standards of conduct, each year we ask our colleagues to reconsider what the Code means to them through a refresher e-learning, and to reafﬁrm their commitment. In 2024, 99.9 per cent of our colleagues completed the mandatory train ing and afﬁrmation (99.8 per cent in 2023). Colleagues who are overdue without a valid reason are subject to a 25 per cent reduction in their annual variable compensation for the year they failed to attest. 99.9 % of employees afﬁrmed recommitment to our Code annually 96 Standard Chartered – Annual Report 2024 Sustainab il ity review Fight ing ﬁnancial cr ime Access to the ﬁnancial system helps transform l ives around the world, helping to reduce poverty and spur economic development. But the ﬁnancial system is also used by those involved in some of today’s most damaging crimes – from human trafﬁcking to terror ism, corruption, and the drug trade. Our ambit ion is to help tackle these crimes by making the ﬁnancial system a host ile environment for crim inals and terrorists. We have no appetite for breaches in laws and regulations related to ﬁnanc ial cr ime. Our Compliance, Financ ial Cr ime and Conduct Risk (CFCR) team sets our Financ ial Cr ime Risk management framework. We seek to protect our clients and communit ies aga inst money laundering (AML), terrorist ﬁnanc ing, sanct ions, fraud, and other risks, by applying core controls such as client due-dil igence, screen ing and monitor ing, and strengthen ing our people’s understanding as to how to ident ify, manage and mit igate such r isks. In addit ion, ant i-bribery, and corruption (ABC) controls aim to prevent colleagues, or third parties working on our behalf, from engaging in bribery or corruption. Our miss ion doesn’t stop at our door. We’re team ing up with banks, governments, and regulators around the world to raise the bar across the industry. Throughout 2024, we actively partic ipated in industry groups, includ ing the Wolfsberg Group of global banks, Madison Group and UK Finance. We also launched a number of ﬁnancial cr ime transformation in it iat ives focused on technology and process capab il ity. The ident iﬁcation and analys is of crim inal networks ut il is ing various money laundering typologies; for example, money mules and shell companies, continues to be a focus, with the proactive use of data to support early detection and prevention. Our public–private partnerships are aimed at producing new ins ights about var ious crim inal typolog ies and advances in how we collectively combat ﬁnanc ial cr ime in an increas ing number of jurisd ict ions, includ ing S ingapore, Hong Kong, South Africa, India, the UK, USA and UAE. Sanctions on Russia remain a sign iﬁcant area of focus. In 2024, the attention has been on multilateral and multiagency measures to prevent evasion or circumvent ion of sanct ions and export controls on Russia. For those in high-risk roles and functions, we delivered addit ional tra in ing across all ﬁnancial cr ime areas, includ ing in-depth awareness on Russia sanctions, ABC train ing for targeted roles, train ing on tax evas ion risks, trade AML, ﬁnancial cr ime risks in ﬁntech and dig ital assets, and money laundering risks concerned with money mules and shell companies. We also delivered a new targeted train ing module covering ESG and ABC risk, ‘Managing Proliferat ion Financ ing R isk and Country AML Handbook’. In addit ion, masterclasses and forums were held to deepen understanding. This was further supported by our Group-wide ﬁnanc ial cr ime awareness campaign, ‘The Whole Story’, which aimed to raise employee awareness of the real-life impact of ﬁnanc ial crime. The theme for 2024 was ‘Staying one step ahead in the ﬁght against ﬁnanc ial cr ime’. It emphasised the need to continuously reinv igorate and recharge the ﬁght aga inst ﬁnancial cr ime through staying abreast of new technologies, and build ing partnersh ips with government bodies, regulators, and our peers to strengthen our collective defences. In 2024, no legal cases concluded in which allegations of corruption had been made against the Group or its employees. We have invested sign iﬁcantly to ensure our employees are properly equipped to combat ﬁnanc ial cr ime. In 2024, 99.8 per cent of colleagues and governance body members completed ﬁnancial cr ime mandatory e-learnings which cover topics such as ABC, AML includ ing terror ist ﬁnanc ing, sanct ions, tax evasion and fraud topics (Asia: 99.8 per cent, AME: 99.9 per cent, EA: 99.9 per cent, governance body members: 100 per cent). This compares with 99.9 per cent in 2023. 99.8 % of colleagues and governance members completed ﬁnancial crime mandatory e-learnings 1 . 1 Governance body members represent Bill Winters and Diego De Giorg i. Colleagues represent permanent employees of the Group as well as ﬁxed-term workers employed by the Group for a ﬁxed period. 97 Standard Chartered – Annual Report 2024 Sustainab il ity review Responsible lending and fair treatment of retail customers in our Wealth & Retail Banking (WRB) segment The Board of Directors provides oversight of the Group’s treatment of WRB retail customers through its reporting and committee structures. The relevant governance forum or Risk Committee is required to challenge the business for any new or material product proposals prior to the commencement of the product approval process, and there are period ic governance forums to monitor customer complaints and collections effectiveness. Escalations may be taken to the WRB Risk Committee chaired by the WRB Chief Risk Ofﬁcer or the Group Risk Committee chaired by the Group Chief Risk Ofﬁcer, and ultimately to the Group’s Board and Board Risk Committee. Complaints management Formal avenues are established for WRB customers to lodge complaints. A complaints-handling process has been put in place to enable the proper receipt, acknowledgement and independent and effective handling of complaints, which are to be resolved and notif ied to customers w ith in a reasonable turnaround time without compromis ing the qual ity of the review. Global key complaints ins ights, trends and root causes are provided to the WRB Risk Committee. Examples of key metrics that are used to track and manage complaints across WRB markets include: total number of complaints received in the period split by type and root cause, includ ing sub-categor ies such as potentially inappropr iate sales, proven m is-selling or fraud, and percentage of complaints resolved with in the pre- determined turnaround time. Collections Second line of defense oversight and governance of WRB retail collections are performed by the WRB Risk function, with regular reviews of performance metrics and complaints- handling data. Across the Group, while the approach may vary across markets in line with local regulations, programmes to assist retail banking borrowers in ﬁnanc ial d istress are handled by the Collections teams. The Group’s credit polic ies outl ine the expectations on the Group’s Collections teams, which include the following: • Provid ing a fa ir and reasonable treatment regarding any allowed concession or waiver • Align ing call ing and vis itat ion hours to local regulations and practices • Having all customer interact ions w ith the Collections teams, complaints and feedback monitored and regularly reviewed • Offering temporary or permanent modif icat ions to loan terms when required All Collections employees responsible for dealing with customers in ﬁnanc ial d istress are required to be trained prior to commencement of collection activ it ies, and in particular, are required to understand the Group’s Code of Conduct and Ethics. Exist ing employees also undergo regular train ing in dealing with customers who are undergoing ﬁnancial hardsh ip, and communicat ions gu idance is regularly updated to reﬂect common circumstances encountered in our markets. Where external collections agencies are util ised, these agencies undergo assessment and due dil igence in accordance with Group sourcing standards and their staff must undertake the same train ing as the Group’s internal Collections teams. Loan modif icat ions Loan modif icat ion options that may be offered to our customers in accordance with local regulations and the Group’s internal credit polic ies, wh ich take into account the most recently available informat ion on the customer’s income, expenditures and circumstances. Collections staff managing these arrangements are trained to discuss options thoroughly with customers in order that any restructured payments, if agreed, are affordable. 98 Standard Chartered – Annual Report 2024 Sustainab il ity review Board oversight of sustainab il ity and climate- related risks and opportunit ies The Board is responsible for the long-term success of the Group and its strategy. Embedding sustainab il ity across our business is a key strategic prior ity for the Group, and ult imate responsib il ity for this sits with the Board. Oversight is exercised through the appointment of supporting committees which consider sustainab il ity- and climate-related risks and opportunit ies when review ing and gu id ing strateg ic decis ions. Through these sub-committees the Board has oversight of the progress against the Group’s external commitments, Sustainab il ity Aspirat ions and del ivery against key sustainab il ity prior it ies includ ing susta inable ﬁnance, Posit ion Statements, human rights and community engagement Throughout 2024, Board activ it ies have included review ing and gu id ing strateg ic decis ions on our approach to reach net zero ﬁnanced em iss ions by 2050. Since 2019, the Board has approved a Climate Risk Appetite Statement annually to reﬂect our aim to measure and manage the ﬁnancial and non-ﬁnancial r isks aris ing from climate change and to reduce emiss ions related to the Group’s own activ it ies, includ ing those assoc iated with provid ing ﬁnancial serv ices to clients, in line with the Paris Agreement. Further, to reﬂect the combined Climate Risk and Reputational and Sustainab il ity Risk, a combined Risk Appetite Statement will be in effect for a comprehensive coverage in 2025. Management-level governance Supporting the Board in its strategic decis ions is the Group Management Team (GMT) and its supporting committees. Each member of the GMT is responsible for strategically driv ing susta inab il ity considerat ions w ith in the ir geography, business segment or function in line with our net zero roadmap. The GMT committees hold the ultimate decis ion- making authority over all material sustainab il ity in it iat ives and can direct actions as necessary for areas of improvement to ensure their effective implementat ion. Th is includes ensuring the effective management of Climate Risk and the net zero roadmap in support of the Group’s strategy, as well as overseeing Risk Appetite metrics. The responsib il ity for the Group’s risk management approach and overall second line of defence for Climate Risk sits with the GCRO as the appropriate Senior Management Function under the Senior Managers Regime. The GCRO is supported by the Global Head, Enterprise Risk Management, who has day-to-day oversight responsib il ity for Climate Risk. The structure of the Group’s Board and Management Team can be found on pages 105 to 112 Supporting governance The oversight and management of sustainab il ity- and climate-related risks and opportunit ies are an integral part of our business management, involv ing several execut ive committees. These committees operate under their terms of reference, delineat ing respons ib il it ies, dec is ion-mak ing process, authority and the escalation route for any material issues. Addit ionally, a number of teams across our bus iness, risk and functional areas are either dedicated to, or spend a proportion of their time, working on sustainab il ity- and climate-related activ it ies. We are also expanding governance and risk management at the regional, country and segment levels to better ident ify and manage cl imate-related risks and opportunit ies. Sustainab il ity governance Management-level governance Board oversight of sustainab il ity- and climate-related risks and opportunit ies Standard Chartered PLC Board Board Risk Committee (BRC) Audit Committee (AC) Culture and Sustainab il ity Committee (CSC) Group Management Team Group Risk Committee (GRC) Group Responsib il ity and Reputational Risk Committee (GRRRC) Sustainab il ity Executive Committee (Sustainab il ity ExCo) Supporting governance Executive committees Climate Risk Management Committee (CRMC) Sustainable Finance Governance Committee (SFGC) Sustainab il ity Operating Steering Committee (SOSC) Sustainab il ity-related risks, opportunit ies and organ isat ional impl icat ions are overseen by the Group’s Board, Management Team and supporting sub-committees. Structural overview of Standard Chartered PLC’s sustainab il ity- and climate-related governance 99 Standard Chartered – Annual Report 2024 Sustainab il ity review Governance committees and steering groups Several committees and steering groups support the Group’s Board and Management Team on the management and monitor ing of susta inab il ity and climate-related risks and opportunit ies, and assoc iated impacts on our business and for our key stakeholders. Governance body Chair Agenda frequency and inputs Roles and responsib il it ies Topics covered in 2024 Standard Chartered PLC Board Group Chairman Annual Strategy Review 2024 Annual Sustainab il ity Strategy Update Climate Risk updates delivered through the Group CRO report • Oversight of the Group’s sustainab il ity strategy, with input from the Culture and Sustainab il ity Committee • Considered the core role of sustainab il ity as part of the annual strategy discuss ion as it is more deeply embedded across the business • Approved Climate Risk Appetite Statement and Board-level Risk Appetite metrics • Endorsed the 2025 sustainab il ity prior it ies • Received an update on the Group’s sustainab il ity strategy, includ ing progress against the four sustainab il ity strategic pillars, the Group’s scorecard metrics and public sustainab il ity commitments • Approved the 2023 Modern Slavery Statement, detail ing the steps taken to manage the risk of modern slavery in the business and its supply chain • Received updates on ESG Risk through the Group CRO reports Board Risk Committee (BRC) Independent Non- Executive Director Climate Risk updates are provided to BRC in Group CRO reports six times a year. Addit ionally, one standalone update on ESGR Risk provided in December 2024. • Provide oversight of the Group’s key risks on behalf of the Board and is the primary risk committee at Board level that oversees Climate Risk • Consider the Group’s Risk Appetite and make recommendations to the Board on the Climate Risk Appetite Statement • Assess risk types (includ ing Climate Risk) and the effectiveness of risk management frameworks and polic ies • Provide oversight and challenge the design and execution of climate-related Group-wide enterprise stress tests mandated by a regulator • Reviewed, discussed and challenged: (i) a combined update on the Group’s progress on embedding ESGR risks (includ ing cl imate and greenwashing related risks) with in our cl ient businesses and own operations; (i i) integrat ion of ESGR R isk into corporate planning and business strategy; (i i i) development of the Group’s internal modelling and stress testing capabil it ies; and (iv) key focus areas for 2025. • Reviewed Climate Risk Information Report quarterly • Monitored adherence to RA metrics Audit Committee (AC) Independent Non- Executive Director Updated annually in Q4 and more frequently if any material disclosures are made outside of the Group’s Annual Report • Responsible for oversight of the Group’s ﬁnancial and non-ﬁnancial reporting, internal controls, audit and whistleblow ing systems and controls • Reviewed changes to the climate and greenhouse gas emiss ions-related quantitat ive d isclosures to be reported in this Annual Report, and the key controls around those quantitat ive d isclosures Culture and Sustainab il ity Committee (CSC) Independent Non- Executive Director Four times in 2024 • Review the Group’s overall Sustainab il ity Strategy • Review progress against the Group’s external commitments, Sustainab il ity Aspirat ions and delivery against key sustainab il ity prior it ies • Monitor the implementat ion and delivery of the Group’s public commitment to net zero emiss ions by 2050 • Monitor emerging sustainab il ity issues that require Board-level oversight and/or external stakeholder engagement • Monitor progress against the ESG Ratings Strategy Roadmap • Review sustainab il ity measures included in the Group annual and/or long-term incent ive plan (LTIP) scorecards • Reviewed and discussed the Group’s Sustainab il ity Strategy • Reviewed progress on the Group’s net zero roadmap • Discussed and endorsed the approach to baseline and target the agriculture sector • Received nature-related train ing • Reviewed and endorsed the Group’s Transit ion Plan • Discussed and endorsed the oil and gas facil itated em iss ions target • Considered a progress update on the Group’s Sustainab il ity Aspirat ions and endorsed four new KPIs • Reviewed, challenged and endorsed the proposed changes to the Human Rights Posit ion Statement (HRPS) • Monitored the Group’s performance on the prior it ised external ratings agencies 100 Standard Chartered – Annual Report 2024 Sustainab il ity review Governance body Chair Agenda frequency and inputs Roles and responsib il it ies Topics covered in 2024 Group Risk Committee (GRC) Group Chief Risk Ofﬁcer (GCRO) 1 Climate Risk updates were provided to GRC in Group CRO report 11 times during 2024. Addit ionally, three ad hoc meetings • Oversee the effective implementat ion of the Enterpr ise Risk Management Framework (“ERMF”) for the Group, includ ing the delegation of any part of its authorit ies to appropr iate ind iv iduals or properly constituted committees below the GRC • Review Risk Appetite (RA) for all Princ ipal R isk Types (PRT) includ ing Climate Risk across the Group, to ensure that this is with in the approved Board RA and Management Team (MT) lim its • Received updates on RA, portfolio risks, recent NGO activ ity and regulatory updates via Group CRO Report • Received an update on Reputational and Sustainab il ity Risk material ity assessment, Environmental and Social Risk Assessments and ESGR Risk by PRT as part of the Group Risk Information Report • Received an update on RA MT Lim it and Board RA metrics and monitored adherence to these Group Responsib il ity and Reputational Risk Committee (GRRRC) GCRO¹ Fourteen times in 2024 • Oversee and approve Posit ion Statements includ ing sector- specif ic and cross-sector statements includ ing Cl imate Risk • Oversee reputational and sustainab il ity-related RA metrics • Provide vis ib il ity of potent ially very high or high ESGR matter escalations to the Board Risk Committee as relevant • Make decis ions on cl ients and transactions which are assessed as High or Very-High based on the Group’s Reputational Risk Material ity Assessment Matr ix Reviewed and approved: • Exposure to clients that do not comply with enhanced environmental and social criter ia • Transactions where Posit ion Statement criter ia are not fully met • Transactions with high or very high Reputational Risk with climate change factors and decis ions on whether to decline transactions or not • The process for net zero portfolio steering and governance, includ ing: (i) evaluating clients’ transit ion plans; (i i) refreshed ﬁnanced em iss ions data for clients in sectors where the Group has set net zero targets; and (i i i) ongoing approach to net zero portfolio management. • Updates for cross-sector and sector- specif ic Pos it ion Statements Sustainab il ity Executive Committee (Sustainab il ity ExCo) Chief Sustainab il ity Ofﬁcer (CSO) Five times in 2024 • Hold ultimate decis ion-mak ing authority over all material sustainab il ity in it iat ives as delegated by the Group Management Team • Direct actions as necessary for areas of improvement to ensure the effective implementat ion of sustainab il ity in it iat ives • Review ﬁnd ings and escalat ions from delegated committees (includ ing but not l im ited to the Sustainab il ity Operating Steering Committee) • Oversee the net zero programme Reviewed and approved: • New net zero sector target for agriculture and facil itated em iss ions target for the most material sector, oil and gas • Announcement of a forward methane commitment • Approval of the Group’s Sustainab il ity Aspirat ions • Group’s Transit ion Plan • Group’s prior it ised ESG ratings Discussed: • The Group’s NGO engagements • Early coal decommiss ion ing approach • Lift ing Part ic ipat ion LTIP metrics 1 Following Tracey McDermott’s retirement as Group Head, Conduct, Financ ial Cr ime and Compliance at the end of 2024, Group Chief Risk Ofﬁcer, Sadia Ricke, assumed overall Group Management Team oversight for the CFCR function in January 2025, and succeeded Tracey McDermott as Chair of the GRRRC. See page 112 for more detail on the Management Team 101 Standard Chartered – Annual Report 2024 Sustainab il ity review Governance body Chair Agenda frequency and inputs Roles and responsib il it ies Topics covered in 2024 Climate Risk Management Committee (CRMC) Global Head, Enterprise Risk Management Seven times in 2024 • Oversee the effective implementat ion of the Group’s Climate Risk workplan, includ ing relevant regulatory requirements. • Provide challenge and recommend Climate Risk-related Enterprise Stress Test results • Review, challenge and provide feedback on external disclosures such as Climate Risk-related ﬁnancial d isclosures, includ ing those set out by the TCFD • Monitor and challenge the Climate Risk and net zero proﬁle of the Group with in R isk Appetite • Approval of methodology changes to the net zero baselin ing and associated targets for exist ing sectors • Review and approval of any new net zero sector target Drove delivery of: • Climate-related Group-wide stress testing and management scenario analysis • Progress associated with integrat ing Cl imate Risk across all impacted risk types • Climate Risk-related external disclosures, includ ing those discussed in this report • Regulatory feedback and supervis ion • Climate-related management informat ion and R isk Appetite metrics • Approach to deliver ing tra in ing and upskill ing staff on Cl imate Risk across the Group • Oversight on the development, ownership, as well as the results of Climate Risk models in scope • Oversight of progress towards 2030 targets for automotive manufacturing, steel and agriculture sectors Sustainable Finance Governance Committee (SFGC) Head, Global Sustainab il ity Engagement and Disclosures At least six times a year • Provide leadership, governance and oversight in deliver ing the Group’s sustainable ﬁnance offerings • Review and endorse sustainable ﬁnance products • Guide the Group in ident ify ing opportunit ies in sustainable ﬁnance and managing the greenwashing risks relating to sustainable ﬁnance Reviewed and approved: • Sustainable ﬁnance products includ ing susta inable cash products, sustainable trade ﬁnance products and sustainable ﬁnance wealth and retail products • Green and sustainable ﬁnance transactions includ ing transact ions with climate-related key performance ind icators • The Group’s GSPF, encompassing a range of climate ﬁnance activ it ies • The Group’s TFF outlin ing our approach to deﬁning trans it ion activ it ies • The Group’s approach to pureplay clients which align to the Group’s GSPF and TFF Sustainab il ity Operating Steering Committee (SOSC) Head Strategic Init iat ives, Sustainable Finance Monthly (min imum eight per year) • Central forum where all strategic prior it ies related to sustainab il ity are consolidated, prior it ised and agreed upon • Oversee and monitor milestones and deliverables of sustainab il ity in it iat ives • Ensure sustainab il ity investment budget is centrally prior it ised and allocated to business’ and functions’ quarterly performance reviews • Be a forum for escalation and decis ion-mak ing • Enforced accountabil ity and fostered collaboration across the Group to operational ise the Group’s net zero plan requirements and the broader sustainab il ity agenda • Advanced the pan-bank data and dig ital strategy and capab il it ies to embed sustainab il ity into the client and deal lifecycle • Provided updates on advancement with in the Group’s Innovat ion Hubs Vis it our Comm ittees website to view the terms of reference for our ﬁve board committees sc.com/committees 102 Standard Chartered – Annual Report 2024 Sustainab il ity review Incentive structure Variable remuneration is based on measurable performance criter ia l inked to the Group’s strategy, includ ing our sustainab il ity-related goals and targets, which is overseen by the Culture and Sustainab il ity and Remuneration Committees. Annual incent ive The Group scorecard, which contains ﬁnanc ial and strateg ic measures, is a key input in determin ing the Group’s var iable remuneration pool. Sustainab il ity-related measures were included in the 2024 Group scorecard and continue to be included in the 2025 Group scorecard related to: Sustainab il ity-related measures continue to be included in the 2025 Group scorecard related to: • Growing sustainable ﬁnance income in our Corporate & Investment Banking network and social lending in Wealth & Retail Banking. • Net zero decarbonisat ion: reduc ing our ﬁnanced emiss ions for key sectors in line with our risk appetite. • Reducing Scope 1 and 2 emiss ions in line with our operational net zero by 2025 target. Long-term incent ive plan (LTIP) LTIP awards are granted to members of the Group Management Team and may also be granted to other employees in the Group. Sustainab il ity measures continue to be included in the 2025–27 LTIP, streamlined to focus on our net zero pathway as follows: Sustainab il ity continues to be included in the 2025–27 LTIP streamlined to focus on our net zero pathway as follows: • Accelerating zero: progress towards our 2030 sustainable ﬁnance mobil isat ion target in each of the three performance years. • Net zero decarbonisat ion: reduc ing our ﬁnanced emiss ions for key sectors be ing assessed on annual year-on-year emiss ion reduct ions. Further details can be found in the Directors’ remuneration report on pages 143-181 Key ind iv iduals or teams with climate-related object ives wh ich impact variable remuneration In addit ion to the Group scorecard and LTIP performance measures, ded icated climate and sustainab il ity-related object ives apply across functional and regional scorecards includ ing the R isk function, and ind iv idual object ives add a further l ink between sustainab il ity outcomes and reward. Indiv idual or team Objectives/performance l inkage Group Management Team (MT) Members of the Group MT are elig ible for an annual incent ive based on the outcome of our Group scorecard and an LTIP award which both include sustainab il ity-related measures. Further details can be found on pages 143 to 181 of this Annual Report. Group Chief Risk Ofﬁcer (CRO) The GCRO is responsible for the overall second line of defence for Climate Risk as the appropriate Senior Management Function under the Senior Managers Regime. The GCRO is supported by the Global Head, Enterprise Risk Management, who has day-to-day oversight responsib il ity for Climate Risk. Chief Sustainab il ity Ofﬁcer (CSO) The CSO is responsible for setting and driv ing the Group’s susta inab il ity strategy, includ ing del iver ing on the Group’s public sustainab il ity commitments. The CSO organisat ion houses the Group’s susta inab il ity strategy, net zero delivery, strategic in it iat ives, Innovat ion Hubs and environmental and social risk management (ESRM) teams. Performance measures for the CSO include progress against the delivery of the Group’s net zero roadmap and sustainable ﬁnance targets. Global Head of Supply Chain Management The Global Head of Supply Chain Management is responsible for ensuring and overseeing the delivery of supply chain emiss ions reduct ions and climate-related object ives and plans in partnership with contract owners across the Group. This includes baselin ing our supply cha in emiss ions related to products and serv ices, supply chain emiss ions d isclosures, and the implementat ion of plans to reduce supply cha in-related emiss ions and manag ing climate risks in partnership with our suppliers. Global Head of Corporate Real Estate Services (CRES) The Global Head of CRES is responsible for deliver ing on our a im to reach net zero emiss ions in our Scope 1 and Scope 2 emiss ions by 2025. All employees Selected sustainab il ity-related targets are incorporated into our annual Group scorecard which determines annual incent ives for the majority of our employees. Encouraging girls to Play On We teamed up with Liverpool Football Club coaches in 2024 to deliver our bespoke ‘Play On: Train the Trainer’ curriculum to local coaches in South Africa and Kenya, with more than 6,300 girls estimated to have taken part. It’s part of our joint ﬁve-year in it iat ive w ith LFC to keep girls in sport because of the life skills it teaches. LFC Women’s players also featured in a series of social videos highl ight ing the importance of mentors in encouraging girls to play sport, helping girls to believe in themselves and thrive both on and off the ﬁeld. Read more at sc.com/playon Directors’ Report 104 Group Chairman’s governance overview 105 Board of Directors 110 Management Team 113 Corporate governance 143 Directors’ remuneration report 174 Addit ional remunerat ion disclosures 182 Other disclosures 192 Statement of Directors’ responsib il it ies 103 Standard Chartered – Annual Report 2024 Directors’ report 104 Standard Chartered – Annual Report 2024 Directors’ report Group Chairman’s governance overview Group Chairman’s governance overview Before I began to write what is my ﬁnal corporate governance report to you as Chairman, I took some time to look back across my reports and reﬂect on our journey. In 2016, my ﬁrst report set out a few aims for my stewardship of the Group. Some of these related to its governance and included my commitment to make the Group more resil ient to external shocks, to ensure excellent governance and the highest ethical standards. Governance is about doing the right things, at the right times and being vig ilant. Many of my subsequent reports referred to nav igat ing the geopolit ical env ironment, tackling ﬁnanc ial cr ime and managing increas ing cyber threats. Wh ile those categories might have remained the same, the underlying threats continue to evolve rapidly. We monitored them closely, inv it ing internal and external experts to discuss their opin ions and pred ict ions w ith the Board at specially arranged sessions throughout my tenure. The speakers included some of the world’s most eminent economists, central bankers, regulators, polit ic ians, business leaders and technology experts. The Management Team are inv ited to many of these events and the outcomes helped improve the resil ience of the Group and shape our strategy. In 2018, the dynamism of geopolit ics was such that the Group established an International Advisory Council (IAC) made of experts drawn from a number of disc ipl ines from around the World. The IAC meets regularly to share their views on world developments and their potential impacts on the Group. It is currently chaired by Robert Zoellick, the former President of the World Bank and remains as important to our strategic think ing today as it was at its incept ion. Early in my tenure, sustainab il ity featured regularly on Board agendas. In 2018, the Group committed to cease new funding for coal ﬁred power stations. By 2021, the rapidly increas ing focus on susta inab il ity, and climate in particular, saw the establishment of a Board committee which included sustainab il ity as a key part of its remit. This year, I was very proud that the Group announced that it had completed its ﬁnal posit ion statement on the 12 h ighest carbon emitt ing sectors. In prepar ing these statements, we have made some diff icult cho ices to promote a just transit ion for all our commun it ies. You can read more about this in the Culture and Sustainab il ity Committee report on pages 134 to 136. Occasionally, I am asked how a Board of 12 or so people are able to oversee an organisat ion as complex, dynam ic and with the geographic spread of Standard Chartered. Of course, we cannot expect our Board to have expertise in every market or issue faced by the Group but nevertheless recognise our duty to provide oversight of the whole business and constructive challenge to Management. Where we have needed an addit ional spec if ic area of expert ise for a sustained period, we have appointed Board advisers. Paul Khoo, a former head of Interpol, advised the Board for many years on the Group’s approach to ﬁnancial cr ime. Sir Iain Lobban, a former head of GCHQ, has advised the Board on the Management’s strategy for dealing with cyber security threats for a number of years and continues to do so. On other occasions, directors attend technical train ing sess ions and meetings are arranged with ind iv idual directors to take them through areas and issues they may not have encountered before. Now turning to this year, the Board vis ited Shangha i, Mumbai and Nairob i to get a better understand ing on the ground of the sign iﬁcant potential in these dynamic markets. In addit ion, many d irectors made ind iv idual trips to vis it the bus iness in a number of other markets. Each vis it presented opportun it ies for d irectors to engage with our colleagues, clients, suppliers, regulators and other stakeholders. We enjoyed every moment and are grateful for the warmth of the receptions we received and time of everyone we met. The Board has focused heavily on the preparation of a new Remuneration Policy, which will be put to shareholders at the AGM. We have engaged extensively with our investors and other stakeholders and I am very grateful for their time and advice. You will be able to read much more about this in our Directors' remuneration report on page 143 to 173.. I was very sorry to say goodbye to David Conner, who retired from the Board after completing his nine-year term in December 2024. David is the last of the non-executives who were in place when I arrived, and I want to thank him for his many sign iﬁcant contr ibut ions during our shared journey. We welcomed Lincoln Leong to the Board in November 2024 and I am pleased to report that he is settling in well and already proving a valuable addit ion. We completed our board and committee reviews, which recognised a number of achievements and areas for improvement. You can read more about these and a range of other topics in the rest of this report. You have an exceptional Board who work exceptionally hard for you. The Board has made an exceptional choice in choosing Maria as my successor and I have every conﬁdence that it will ﬂourish under her leadership. I am proud of what we have achieved over the past nine years and thank you for your consistent support during my tenure. I look forward to the Board helping the Group to continue to deliver long-term value to shareholders and other stakeholders. Dr José Viñals Group Chairman 21 February 2025 “Governance is about doing the right things, at the right times, and being vig ilant.” 105 Standard Chartered – Annual Report 2024 Directors’ report Board of Directors Audit Committee Board Risk Committee Culture and Sustainab il ity Committee Governance and Nominat ion Comm ittee Remuneration Committee Denotes Committee Chair A Ri S N R Committee key Dr José Viñals (70) Group Chairman Appointed October 2016 and Group Chairman in December 2016. José was appointed to the Court of Standard Chartered Bank in April 2019. National ity: Spanish Based in the UK Skills and experience José has substantial experience in the internat ional regulatory arena and an exceptional understanding of the economic, ﬁnanc ial and pol it ical dynamics of our markets and of global trade. Career Until 2016, José was the Financ ial Counsellor and the Director of the Monetary and Capital Markets Department at the International Monetary Fund (IMF). He was the IMF’s chief spokesperson on ﬁnanc ial matters, includ ing global ﬁnancial stab il ity. During his tenure, José was a member of the Plenary and Steering Committee of the Financ ial Stab il ity Board. Pr ior to the IMF, José began his career as an economist and as a member of the faculty at Stanford Univers ity, before go ing to the Central Bank of Spain, where he was the Deputy Governor. He is a past President of the International Monetary Conference. José has held many other board and advisory posit ions, includ ing cha ir of Spain’s Deposit Guarantee Fund, chair of the International Relations Committee at the European Central Bank, member of the Economic and Financ ial Comm ittee of the European Union, and chair of the Working Group on Institut ional Investors at the Bank for International Settlements. External appointments José is Co-Chair of the United Nations’ Alliance of Global Investors for Sustainable Development. He is a board member of the Institute of International Finance and a member of the board of directors of the Bretton Woods Committee. He is also a member of the Leadership Council of TheCityUK, a member of the Business Advisory Group to the Director General of the World Trade Organizat ion, a member of the World Economic Forum’s Community of Chairpersons and a board member of the Social Progress Imperative. Committees N Bill Winters (63) Group Chief Executive Appointed June 2015. Bill was also appointed to the Court of Standard Chartered Bank in June 2015. National ity: US/Brit ish Based in the UK Skills and experience Bill is a career banker with sign iﬁcant frontl ine global banking experience and a proven track record of leadership and ﬁnanc ial success. Career Bill began his career with JP Morgan, where he went on to become one of its top ﬁve executives and later Co- Chief Executive Ofﬁcer at the investment bank from 2004 until 2009. Bill was inv ited to be a committee member of the UK Independent Commiss ion on Bank ing to recommend ways to improve competit ion and ﬁnancial stab il ity in banking. Subsequently, he served as an adviser to the UK Parliamentary Commiss ion on Banking Standards and was asked by the Court of the Bank of England to complete an independent review of the Bank of England’s liqu id ity operations. In 2011, Bill founded Renshaw Bay, an alternative asset management ﬁrm, where he was Chairman and CEO. He stepped down on appointment to the Standard Chartered PLC Board. Bill was previously a non- executive director of Pension Insurance Corporation plc and RIT Capital Partners plc. He received a CBE in 2013. External appointments Bill is an independent non-executive director of Novartis International AG, an Advisory Group Member of the Integrity Council for Voluntary Carbon Markets and a Board Advisor to the International Rescue Committee. Diego De Giorg i (54) Group Chief Financ ial Ofﬁcer Appointed January 2024. Diego was also appointed to the Court of Standard Chartered Bank in January 2024. National ity: Italian Based in the UK Skills and experience Diego has more than three decades of experience in the global ﬁnancial serv ices sector, working with clients across the UK, Europe, the US, Asia, the Middle East and Africa. Career Diego spent 18 years at Goldman Sachs, with leadership roles in the Equity Capital Markets Group and the Financ ial Institut ions Group before becom ing the Chief Operating Ofﬁcer for the Global Investment Banking div is ion. Following this, he moved to Bank of America Merrill Lynch, where he spent six years, ris ing to Head of Global Investment Banking. He served as a non-executive director at UniCred it and a member of their Compensation Committee in 2020 and 2021. From 2021, Diego was the Co-Chief Executive of Pegasus Europe, Europe’s largest-ever special purpose acquis it ion company, which was focused on the ﬁnanc ial services sector and was listed on Euronext Amsterdam. External appointments Diego sits on the Board of the MIB Trieste School of Management. 106 Standard Chartered – Annual Report 2024 Directors’ report Board of Directors Maria Ramos (65) Senior Independent Director Appointed January 2021. Maria was also appointed to the Court of Standard Chartered Bank in January 2021. She was appointed as Senior Independent Director in September 2022. National ity: South African Based in South Africa Skills and experience Maria has extensive CEO, banking, commercial, ﬁnanc ial, policy and internat ional exper ience. As announced on 4 February 2025, Maria will be appointed as Group Chair, subject to regulatory approval, following the AGM on 8 May 2025. Career Maria served as Chief Executive Ofﬁcer of ABSA Group Lim ited (prev iously Barclays Africa Group), a divers iﬁed ﬁnancial serv ices group serving 12 African markets, from 2009 to 2019. Before join ing ABSA, Maria was the Group Chief Executive of Transnet Ltd, the state-owned freight transport and logist ics serv ice provider, for ﬁve years. Maria served for seven years as Director General of South Africa’s National Treasury (formerly the Department of Finance). Maria has served on a number of internat ional boards, includ ing Sanlam Ltd, Remgro Ltd, and SABMiller plc, and more recently was Chair of AngloGold Ashanti PLC until 2024 and a non-executive director of the Saudi Brit ish Bank and Public Investment Corporation Lim ited unt il December 2020. External appointments Maria is a non-executive director of Compagnie Financ ière R ichemont SA from which she will retire after 13 years on 31 March 2025. She is also a member of the Group of Thirty, sits on the International Advisory Board of the Blavatnik School of Government at Oxford Univers ity and on the Wits Foundation Board of Governors. As announced on 4 February 2025, Maria will be appointed as Group Chair of Standard Chartered PLC following the 2025 AGM on 8 May 2025. Committees Ri A R N Shir ish Apte (72) Independent Non-Executive Director Appointed May 2022. Shir ish was appointed to the Court of Standard Chartered Bank in January 2023. National ity: Brit ish Based in Singapore Skills and experience Shir ish has extens ive corporate, investment banking, risk management, commercial and retail banking experience. He has a deep understanding of ﬁnanc ial serv ices, notably across the Asia Pacif ic, M iddle East, Africa, and Central and Eastern European regions. Career Shir ish spent over 30 years w ith Cit igroup, where he focused on corporate and investment banking, and managed commercial and retail banking businesses at country and regional level. He has strong risk experience and was a Senior Credit Ofﬁcer and a Senior Securit ies Ofﬁcer at Cit igroup. Sh ir ish was Co-CEO for C it i’s Europe, Middle East and Africa business from 2008 to 2009, and Regional CEO Asia Pacif ic from 2009 to 2011. He was Cha irman of Asia Pacif ic Bank ing from 2012 until his retirement in 2014. He was on the Executive and Operating Committees of Cit igroup from 2008 to 2014. From June 2014 until October 2022, he was an independent non- executive director at the Commonwealth Bank of Australia. External appointments Shir ish is an independent non-executive director at Singapore Life Pte Ltd and Hillhouse Investments and an independent non- executive director of Keppel Corporation Lim ited, where he is a member of its Audit and Board Risk Committees. Committees R A Ri N Phil Rivett (69) Independent Non-Executive Director Appointed May 2020. Phil was also appointed to the Court of Standard Chartered Bank in May 2020. National ity: Brit ish Based in the UK Skills and experience Phil has sign iﬁcant professional accountancy and audit experience, specif ically focused in the ﬁnancial serv ices sector. Career Phil jo ined Pr icewaterhouseCoopers (PwC) in 1976, becoming a Partner in 1986. He spent more than 30 years at PwC and was lead relationsh ip Partner for several FTSE 100 companies, includ ing several internat ional banks and ﬁnancial serv ices inst itut ions. He also has substantial internat ional exper ience, having worked with banks across the Middle East and Asia, in particular China. He became Leader of PwC’s Financ ial Serv ices Assurance practice in 2007 and was appointed Chairman of its Global Financ ial Serv ices Group in 2011. Phil has sat on a number of global ﬁnanc ial services industry groups, producing guidel ines for best pract ice in governance, ﬁnancial report ing and risk management. External appointments Phil is an independent non-executive director and Chair of the Audit Committee at Nationw ide Bu ild ing Soc iety. Committees A Ri N 107 Standard Chartered – Annual Report 2024 Directors’ report Dr Linda Yueh, CBE (53) Independent Non-Executive Director Appointed January 2023. Linda was also appointed to the Court of Standard Chartered Bank in January 2023. National ity: US/Brit ish Based in the UK Skills and experience Linda is a renowned economist and ﬁnanc ial broadcaster w ith a diverse range of skills and experience across ﬁnancial serv ices, technology, not-for-proﬁt and business-to-business service sectors. Career Linda has held various academic and advisory roles after starting her career as a corporate lawyer. Linda was Economics Editor at Bloomberg News from 2010 to 2012 and Chief Business Correspondent for the BBC between 2013 and 2015. She was a Vis it ing Professor at LSE IDEAS at the London School of Economics and Polit ical Science from 2019 to 2022 and served on the Independent Review Panel on Ring-Fencing and Proprietary Trading for HM Treasury. Linda held non-executive directorsh ips with Scottish Mortgage Investment Trust Plc, London & Partners Ltd and JPMorgan Asia Growth & Income Plc. She was Senior Independent Director of Fidel ity Ch ina Special Situat ions Plc. L inda was awarded a CBE for Services to Economics in the New Year Honours List of 2023. Linda was a Trustee of the Coutts Foundation and Adviser to the UK Board of Trade. External appointments Linda is a Fellow at St Edmund Hall, Oxford Univers ity, and Adjunct Professor of Economics at London Business School. She is an independent non-executive director of Rentokil Init ial Plc and Segro Plc, Cha ir of the Baill ie G ifford The Schiehall ion Fund Ltd, an investment company listed on the Special ist Fund Segment of the London Stock Exchange Main Market, Chair of the Royal Commonwealth Society, Trustee of the Fidel ity UK and Internat ional Foundations, and an Associate Fellow at Chatham House. Linda is a Member of the UK Soft Power Council, co-chaired by the UK Foreign and Culture Secretaries. Committees S R N Jackie Hunt (56) Independent Non-Executive Director Appointed October 2022. Jackie was also appointed to the Court of Standard Chartered Bank in October 2022. National ity: Brit ish Based in the UK Skills and experience Jackie is a chartered accountant and has spent most of her career with in ﬁnancial serv ices. She brings sign iﬁcant UK and internat ional ﬁnancial services experience, includ ing asset management, insurance, regulatory and accounting knowledge. Career Jackie has held several senior management posit ions at compan ies includ ing Av iva, Hibern ian Group, Norw ich Union Insurance, PwC and RSA Insurance. From 2016 until 2021, she was a member of the Allianz SE management board. Jackie was an executive director of Prudential plc and CEO of Prudential UK, Europe and Africa. She was Group Chief Financ ial Ofﬁcer of Standard Life plc from 2010 to 2013, where she helped transform the life insurer into a diverse savings, pensions and asset management business. Jackie was previously the Senior Independent Director of National Express Group PLC, a non- executive director of TheCityUK and the Deputy Chair of the FCA Practit ioner Panel. She was also an independent non-executive director of Man Group PLC, Rothesay Life PLC and OneWeb Holdings Lim ited. External appointments Jackie is an independent non-executive director of Will is Towers Watson plc. Committees A Ri R Robin Lawther, CBE (63) Independent Non-Executive Director Appointed July 2022. National ity: US/Brit ish Based in the UK Skills and experience Robin brings extensive internat ional bank ing experience in global markets and ﬁnancial inst itut ions. In addit ion to a broad understand ing of commercial banking, she has special ist knowledge in investment banking, mergers and acquis it ions, and capital rais ing. Career Robin spent over 25 years at JP Morgan Chase in several senior executive posit ions. She has valuable execut ive and non-executive experience across global markets and has considerable understanding of regulatory and governance issues. From 2019 to 2021, she served as a non-executive director on the board of M&G plc. In January 2014, Robin joined Shareholder Execut ive, which later became UK Government Investments (UKGI), as a non-executive board member until completing her term in May 2022. She received a CBE for services to ﬁnance and divers ity in the Queen’s Birthday Honours 2020. From 2014 to 2023, she served as an independent non-executive director of Nordea Bank Abp. External appointments Robin is an independent board member of Ashurst LLP and a member of the global advisory board at Aon PLC. Committees Ri S R 108 Standard Chartered – Annual Report 2024 Directors’ report Board of Directors Diane Jurgens (62) Independent Non-Executive Director Appointed Diane was appointed as an independent non-executive director of Standard Chartered PLC in March 2024. Diane was also appointed to the Court of Standard Chartered Bank in March 2024. National ity: US Based in the US Lincoln Leong (64) Independent Non-Executive Director Appointed : November 2024. Lincoln was also appointed to the Court of Standard Chartered Bank in November 2024. National ity: Canadian/Chinese (HK) Based in Hong Kong Skills and experience Diane has sign iﬁcant expertise in driv ing technology, product development and innovat ion to transform business operations across the mass media and entertainment, min ing, automot ive and aerospace sectors. Career From 2020 to 2023, Diane was Executive Vice President and Chief Information Ofﬁcer at The Walt Disney Company, where she oversaw Disney’s global enterprise technology organisat ion. Between 2015 and 2020, Diane was Chief Technology Ofﬁcer of the multinat ional min ing and metals company BHP, where, largely based in Singapore, she was responsible for leading capital program delivery, technology operations, cyber security, data privacy, and research and development. Between 2012 and 2015, Diane was President and Managing Director of an American and Chinese jo int venture, Shanghai Onstar Telematics, and was based in Shanghai. Prior to that, Diane held numerous senior executive posit ions at General Motors includ ing several global roles across many of the Group’s key markets. External appointments Diane is a Dean’s Advisory Board Member on the Univers ity of Washington College of Engineer ing and a non-executive director of the World 50 Group. Committees S Ri Skills and experience Lincoln is a Chartered Accountant with experience in general management, investment management and investment banking, includ ing a wealth of execut ive and non-executive board experience across a range of industr ies and markets, particularly in the Hong Kong market. Career Lincoln spent over 15 years at MTR Corporation Lim ited in a range of executive roles, becoming its Chief Executive Ofﬁcer from 2015 to 2019. Prior to this he held a number of senior roles with in pr ivate equity and investment banking includ ing as a partner at Capital Z Asia Lim ited, Sen ior Vice President of Investment Banking at Lehman Brothers Asia Ltd and Director of, followed by Head of Corporate Finance at Schroders Asia Ltd. Lincoln started his career as an accountant at PriceWaterhouse (now PricewaterhouseCoopers) in London and subsequently joined Pr iceWaterhouse in Vancouver. He was previously a non- executive director of Jardine Strategic Holdings Lim ited and Mandar in Oriental International Lim ited, and an independent non-executive director of Link Asset Management Lim ited (manager of the listed Link Real Estate Investment Trust) and SUNeVis ion Hold ings Ltd. External appointments Lincoln is an independent non-executive director of Standard Chartered Bank (Hong Kong) Lim ited. He is also a non-executive director of the Hong Kong listed company China Resources Land Lim ited, a non-execut ive director of Hongkong Land Holdings Lim ited and holds a number of roles on the boards of not-for-proﬁt companies includ ing The Commun ity Chest of Hong Kong, Hong Kong Management Associat ion and Hong Kong Housing Society. Committees A David Tang (70) Independent Non-Executive Director Appointed June 2019. National ity: US Based in China Skills and experience David has a deep understanding and experience of emerging technologies in the context of some of our key markets, most notably Mainland China. Career David has more than 30 years of internat ional and Ch inese operational experience in the technology and venture capital industr ies, cover ing venture investments, sales, marketing, business development, research and development and manufacturing. From 1989 to 2004, David held a number of senior posit ions in Apple, Dig ital Equ ipment Corp and 3Com based in China and across the Asia Pacif ic reg ion. From 2004 to 2010, David held various posit ions in Nokia, includ ing Corporate Vice President, Chairman of Nokia Telecommunicat ions Ltd and V ice Chairman of Nokia (China) Investment Co. Ltd. He went on to become Corporate Senior Vice President and Regional President of Advanced Micro Devices (AMD), Greater China, before jo in ing NGP Capital (Nokia Growth Partners) in Beijing as Managing Director and Partner in 2013, a posit ion he held until June 2021. David was a non- executive director of Kingsoft Corporation, a leading Chinese software and internet services company listed on the Hong Kong Stock Exchange. External appointments David jo ined Kaiyun Energy (previously Kaiyun Motors) in June 2021 as Chief Value Ofﬁcer. David is also a non-executive director of JOYY Inc., the Chinese live-streaming social media platform listed on the Nasdaq Stock Market. He is also an adviser to NGP Capital. Committees R S 109 Standard Chartered – Annual Report 2024 Directors’ report As announced on 21 December 2023, Andy Halford stepped down from the Board on 2 January 2024. As announced on 16 February 2024, Gay Huey Evans stepped down from the Board with effect from 29 February 2024 and Carlson Tong stepped down on 9 May 2024. As announced on 11 December 2024, David Conner stepped down from the Board with effect from 30 December 2024. With the exception of the Governance and Nominat ion Comm ittee (where the Group Chairman is its Chair), all of the Board committees are composed of independent non-executive directors (INEDs). The roles of the Group Chairman and Group Chief Executive are dist inct from one another and are clearly deﬁned in detailed role descript ions wh ich can be viewed at sc.com/roledescript ions Adrian de Souza (54) Group Company Secretary Appointed Adrian was appointed Group Company Secretary in May 2022. National ity: Brit ish Based in the UK Skills and experience Adrian has extensive experience as Company Secretary and General Counsel to FTSE 100 and FTSE 250 companies. Career Adrian qualif ied as a lawyer in 1997. Prior to jo in ing Standard Chartered, he was General Counsel for Vivo Energy PLC, a FTSE 250 pan-African fuel retailer, where he was responsible for the Company Secretarial, Governance, Ethics, Compliance and Forensic Investigat ions funct ions, and was a member of the group’s Executive Committee. After working in private practice at internat ional law ﬁrms Hogan Lovells and Clifford Chance, Adrian served as General Counsel and Company Secretary at IQSA Group (a Goldman Sachs private equity business), Company Secretary at Barclays Bank UK PLC, General Counsel and Company Secretary of the FTSE 100 company, Land Securit ies Group PLC, where he was a member of the Group’s Executive Committee, and Head of Legal at SABMiller PLC, Europe. 110 Standard Chartered – Annual Report 2024 Directors’ report Management Team Bill Winters (63) Group Chief Executive Alvaro Garrido (55) Interim Group Chief Information Ofﬁcer National ity: Spanish Based in Singapore Roberto Hoornweg (56) Global Co-Head, Corporate & Investment Banking National ity: Italian/Dutch Based in UAE Judy Hsu (61) CEO, Wealth & Retail Banking National ity: Canadian Based in Hong Kong Alvaro was appointed as inter im Group Chief Information Ofﬁcer on 5 September 2024, having jo ined the Group in May 2022. Prior to jo in ing Standard Chartered, he served as Group Chief Security Ofﬁcer and Group Chief Information Security Ofﬁcer at Banco Bilbao Vizcaya Argentaria in Spain, and previously held senior roles across Asia, Europe, the Middle East and the Americas includ ing at Nordea, where he served as the Group CIO; Brit ish Amer ican Tobacco as Global Head of Technology Services; Roche Pharmaceuticals as Head of IT Engineer ing; and Sun Microsystems. External appointments None Roberto was appointed Global Co-Head, Corporate & Investment Banking in April 2024. He also has responsib il ity for our Europe, Americas, Middle East and Africa markets. Prior to his current role, he was Global Head of Financ ial Markets from January 2017. Before join ing Standard Chartered, he was a partner at Brevan Howard leading the Liqu id Portfol io Strategies funds business. Previously, he spent three years at UBS Investment Bank in London leading the global Securit ies Distr ibut ion business and then co-heading the global Fixed Income, Currencies and Commodit ies d iv is ion. Roberto spent 17 years at Morgan Stanley where he held various senior roles in ﬁxed income derivat ives, led the global Emerging Markets Fixed Income & FX business, and was latterly Head of Global Interest Rates, Credit and Currencies. External appointments None Judy was appointed CEO, Wealth and Retail Banking (WRB) in January 2021 and in November 2024 she also took on responsib il ity for Greater China and North Asia markets. She has been a member of the Group Management Team since 2018 and is also the Chairperson of Trust Bank Singapore Lim ited. Pr ior to her most recent appointment, Judy was Regional CEO, ASEAN & South Asia, a posit ion she held from June 2018. Judy was the country CEO for Standard Chartered Singapore from 2015 to 2018. She joined Standard Chartered in December 2009 as the Global Head of Wealth Management and led the strategic advancement of the Bank’s wealth management business. Prior to this, Judy spent 18 years at Cit ibank, where she held various leadership roles in its Consumer Banking business in Asia. External appointments Judy is a non- executive and independent director of CapitaLand Lim ited. Management Team Diego De Giorg i (54) Group Chief Financ ial Ofﬁcer 111 Standard Chartered – Annual Report 2024 Directors’ report Mary Huen (57) CEO, Hong Kong and Greater China & North Asia National ity: Chinese Based in Hong Kong Benjamin Hung (60) President, International National ity: Canadian Based in Hong Kong Tanuj Kapilashram i (47) Chief Strategy & Talent Ofﬁcer National ity: Brit ish Based in the UK Mary was appointed Chief Executive Ofﬁcer (CEO) for Hong Kong and Greater China & North Asia in August 2024. She is an executive director of Standard Chartered Bank (Hong Kong) Lim ited (SCBHK) and chairs the Board of Standard Chartered Bank (Taiwan) Lim ited. She has over 30 years of experience in business management and banking services. Mary was the Regional Head of Retail Banking, Greater China & North Asia, before being appointed CEO for Hong Kong in March 2017, and took on an expanded role as Cluster CEO for Hong Kong, Taiwan and Macau in January 2021. External appointments Mary is the Chairperson of the Hong Kong Associat ion of Banks, Vice President of the Council of the Hong Kong Institute of Bankers, and a Council Member of the Hong Kong Treasury Markets Associat ion. She is also a member of the Hong Kong Monetary Authority’s Banking Advisory Committee, the Hong Kong Monetary Authority’s Currency Board Sub-Committee of its Exchange Fund Advisory Committee, and the Hong Kong Academy of Finance. Mary serves the broader Hong Kong community as a representative of Hong Kong, China to the Asia-Pacif ic Econom ic Cooperation Business Advisory Council, a Council Member of the Hong Kong Management Associat ion, a Council Member of the Hong Kong Trade Development Council and member of its Belt and Road & Greater Bay Area Committee, the Aviat ion Development and Three- runway System Advisory Committee, and the Human Resources Planning Commiss ion. Mary also holds Board posit ions in the Hong Kong Hospital Authority and the Hong Kong Tourism Board. Ben was appointed Standard Chartered’s President, International in April 2024. He sits on the Board of SCBHK and is the Chairperson of both Standard Chartered Bank (China) Lim ited and Standard Chartered Bank (Singapore) Lim ited. Ben joined Standard Chartered in 1992 and has held a number of senior management posit ions spann ing corporate, commercial and retail banking. Prior to his current role, he was CEO, Asia, overseeing the Bank’s presence in 21 Asian markets. He was previously Regional CEO for Greater China & North Asia and CEO for the Bank’s Retail Banking and Wealth Management businesses globally. External appointments Ben is Chairman of the Board of Directors of the Hong Kong Financ ial Serv ices Development Council. He is a member of the Hong Kong Chief Executive’s Council of Advisers, the Exchange Fund Advisory Committee and the General Committee of the Hong Kong General Chamber of Commerce, and a Board member of the West Kowloon Cultural Distr ict Author ity Board. He is the Co-Chair of B20’s Trade and Investment Taskforce. He also serves as an economic adviser at the International Consultative Conference on the Future Economic Development of Guangdong Province, Mainland China. Tanuj was appointed Chief Strategy & Talent Ofﬁcer in April 2024, and heads Corporate Strategy, Group-wide Transformation and Corporate Functions (HR, Brand & Marketing, Corporate Affairs, Supply Chain Management and Corporate Real Estate & Services). Before taking on this role, Tanuj was the Group Head, Human Resources since 2019, and jo ined the Bank as Group Head, Talent, Learning & Culture in 2017. Tanuj has over two decades of experience in the global ﬁnancial serv ices sector, and prior to Standard Chartered, she built her career at HSBC in a range of country, regional and global leadership roles across multiple markets, includ ing Hong Kong, S ingapore, Dubai, India, and London. External appointments Tanuj is a Non-Executive Director of the Board for Sainsbury’s PLC and is a member of their Nominat ion and Remunerat ion Committees. She is also an Associate Non-Executive Director of the Board of NHS England, advis ing the NHS on its workforce transformation agenda. In addit ion, Tanuj is a member of the Asia House Board of Trustees (an independent think tank driv ing engagement between Asia, the Middle East and Europe) and is on the Board of Vault22 (an integrated dig ital wealth, health and lifestyle solutions start-up). 112 Standard Chartered – Annual Report 2024 Directors’ report Management Team Alex Manson (55) CEO, SC Ventures National ity: French Based in Singapore Sadia Ricke (54) Group Chief Risk Ofﬁcer, Director of Standard Chartered Bank National ity: French Based in the UK Darrell Ryman (56) Interim Group Chief Operating Ofﬁcer National ity: Australian Based in Hong Kong Alex is the CEO of SC Ventures, which he set up in 2018. He jo ined Standard Chartered in 2012 in it ially as Group Head, Wholesale Banking Geographies, and later served as Global Head, Transaction Banking. Alex set up SC Ventures as a unit of Standard Chartered to promote innovat ion, invest in disrupt ive technology and bu ild new ventures to explore alternative business models in the ﬁnanc ial sector. Th is resulted in 35+ new ventures, and 20 minor ity investments in technology partners, across the three themes of Dig ital Bank ing & Lifestyle, Trade & Supply Chains and Dig ital Assets, enabled by artif ic ial intell igence (AI), Web3/Blockchain, ESG and Quantum. He has also created an ecosystem of partners and investors, and laid the foundation for a culture of innovat ion v ia intrapreneursh ip. Prior to Standard Chartered, Alex was at Deutsche Bank for 12 years, where he held roles includ ing Global Head of Lend ing and Corporate Banking Coverage and prior to that Head Global Banking (IBD) Coverage APAC. He started his banking career at Credit Suisse, where he held roles in the Securit izat ion Group, and prior to that Derivat ives & Structured Products. External appointments Alex serves on several boards for our ventures and portfolio companies. Sadia jo ined the Bank in February 2023. She is Group Chief Risk Ofﬁcer (GCRO), and a Director of the Court of Standard Chartered Bank. In addit ion, in January 2025 she assumed overall Group Management Team oversight for the Compliance, Financ ial Cr ime & Conduct Risk (CFCR) and Legal and Corporate Secretariat global functions, in addit ion to manag ing risk across all Princ ipal R isk Types. Sadia jo ined the Bank from Société Générale, where she started in 1994 in the Financ ial Inst itut ions Credit department. Sadia gained more than 13 years of structured ﬁnance experience in the Natural Resources and Energy Finance div is ion, where she was Co-Deputy Head, a posit ion she held unt il 2010 before becoming Head of Credit Risk for SG CIB in Paris. In 2014 Sadia relocated to Hong Kong to take on the role of Head of Global Finance for Asia Pacif ic. She was appo inted Group Country Head and Head of Coverage and Investment Banking for the UK in 2017. Sadia became Deputy Chief Risk Ofﬁcer in 2019 and then GCRO in 2021. External appointments Sadia is Chair of the International Financ ial R isk Institute Foundation. Darrell was appointed as inter im Group Chief Operating Ofﬁcer on 5 September 2024. Darrell joined the Group in March 2023 as Chief Technology Ofﬁcer for Asia and was subsequently appointed as Global Head of Global Business Services and Central Operations in April 2024. Prior to jo in ing the Group, Darrell held CIO roles at AXA covering the UK, Ireland, Hong Kong, Macau and the Greater Bay Area and served on the Board of AXA Technology Services, and held business, technology and Board roles at Avanade in Mainland China, Hong Kong, Australia and Japan. External appointments Darrell is a director of Hong Kong Interbank Clearing Lim ited. Sunil Kaushal (59) Global Co-Head, Corporate & Investment Banking National ity: Singaporean Based in Singapore Sunil was appointed Global Co-Head, Corporate & Investment Banking in April 2024. In addit ion, he has respons ib il ity for our ASEAN and South Asia markets. Sunil has over 37 years of banking experience in diverse markets. Prior to his current appointment, he held the role of Regional CEO Africa and Middle East (AME) at the Bank from October 2015. Sunil has been with Standard Chartered for over 27 years and has held senior roles across the Bank. Before join ing Standard Chartered in 1998, Sunil held various banking posit ions at a number of leading internat ional ﬁnancial inst itut ions. External appointments Sunil is the Chairman of Furaha Finserve Uganda Lim ited, an SC Ventures company. 113 Standard Chartered – Annual Report 2024 Terms of Reference for the Board and each committee are in place to provide clarity over where responsib il ity for decis ion-mak ing lies. These are reviewed annually against industry best practice, corporate governance provis ions and gu idance, and relevant regulatory rules. Our Terms of Reference are available on our website at sc.com/ourpeople The biograph ies of each d irector are set out on pages 105 to 109 . The roles of the Group Chairman and Group Chief Executive are dist inct from one another and are clearly deﬁned in detailed role descript ions wh ich can be viewed at sc.com/roledescript ions Corporate Governance Compliance Statement The directors are pleased to conﬁrm that the Company continued to comply with the UK Corporate Governance Code 2018 (UK Code) and the Hong Kong Corporate Governance Code contained in Appendix C1 of the Hong Kong List ing Rules (HK Code) for the whole of the year under review. In this report, which constitutes our corporate governance report, we share ins ights into how governance operates with in the Group and how we have applied the princ iples set out in the UK Code and HK Code. Copies of the UK Code and the HK Code can be found at frc.org.uk and hkex.com.hk respectively. The Group conﬁrms that it has adopted a code of conduct regarding directors’ securit ies transact ions by directors on terms no less exacting than required by Appendix C3 of the Hong Kong List ing Rules. Hav ing made specif ic enqu ires of all directors, the Group conﬁrms that all directors have complied with the required standards of the adopted code of conduct. Corporate governance Standard Chartered PLC The Board The Board is responsible for the governance, strategic direct ion and performance of the Group and the delivery of sustainable value with in a framework of prudent and effect ive controls to which the Group’s culture is aligned. The Board is responsible for the Group’s engagement with key stakeholders and for consider ing the ir views and interests during Board discuss ions and dec is ion-mak ing. It is responsible for overseeing the Group’s conduct and affairs and for promoting its long-term sustainable success. Under its Terms of Reference, the Board has direct responsib il ity for certain matters, includ ing approval of the Group’s long-term objectives, purpose, valued behaviours, culture and commercial strategy. In other areas, it delegates responsib il it ies to its committees in order to ensure effective independent oversight and scrutiny of those matters and receives reports from them at Board meetings. Key governance roles Board Chairman Our Group Chairman, José Viñals, is responsible for leading the Board, ensuring its effectiveness and, together with the Group Chief Executive, developing and embedding the Group’s culture. The Chairman promotes high standards of integr ity and governance across the Group and ensures effect ive communicat ion and understanding between the Board, management, shareholders and other stakeholders. Senior Independent Director Our Senior Independent Director, Maria Ramos, provides a sounding board for the Group Chairman. Her role includes serving as an intermed iary for the other d irectors where necessary and undertaking the performance evaluation of the Chairman. Maria is available to shareholders if they have concerns that the Chairman, Chief Executive or other executive directors are not able to resolve or for which the normal channels would be inappropr iate. She can be contacted v ia the Group Company Secretary at 1 Basinghall Avenue, London EC2V 5DD. Audit Committee The Audit Committee is responsible for oversight and review of matters relating to ﬁnanc ial reporting, the Group’s internal controls, includ ing internal ﬁnanc ial controls, and the work undertaken by the Compliance, Financ ial Cr ime & Conduct Risk function, Group Internal Audit (GIA) and the Group’s Statutory Auditor, Ernst & Young LLP (EY). Read more on page 123 Board Risk Committee The Board Risk Committee is responsible for oversight and review of the Group’s Risk Appetite Statement, the appropriateness and effectiveness of the Group’s risk management systems and the princ ipal r isks, includ ing Cl imate Risk, to the Group’s business. Furthermore, it considers the impl icat ions of material regulatory change proposals and due dil igence on mater ial acquis it ions and disposals. Read more on page 129 Culture and Sustainab il ity Committee The Culture and Sustainab il ity Committee (CSC) is responsible for oversight and review of the Group’s culture and sustainab il ity prior it ies. Read more on page 134 Governance and Nominat ion Committee The Governance and Nominat ion Comm ittee is responsible for oversight and review of Board and executive succession, overall Board effectiveness and corporate governance issues across the Group. Read more on page 137 Remuneration Committee The Remuneration Committee is responsible for oversight and review of remuneration, share plans and other incent ives. Read more on page 143 With the exception of the Governance and Nominat ion Comm ittee (where the Group Chairman is its Chair), all of the Board committees are composed of independent non-executive directors (INEDs). Group Chief Executive The Board delegates authority for the operational management of the Group’s business to the Group Chief Executive for further delegation by him in respect of matters that are necessary for the effective day-to-day running and management of the business. The Board holds the Group Chief Executive accountable in discharg ing h is delegated responsib il it ies. Management Team The Management Team comprises the Group Chief Executive and the Group Chief Financ ial Ofﬁcer, client segment CEOs and our global function heads. It has responsib il ity for the day-to- day management of the Group and for executing its strategy. Read more on page 110 Directors’ report 114 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Board activ it ies during 2024 January February London March April Shanghai May London June Mumbai July London August September London October November Nairob i December Key: Informal session Scheduled meeting AGM Attendance at Board meetings in 2024 Our Board meetings The Board is committed to mainta in ing a comprehensive schedule of meetings and a forward agenda to ensure its time is used most effectively and efﬁc iently. The Group Chairman holds INED-only meetings ahead of each scheduled Board meeting, which provides the opportunity for discuss ion on key agenda items and other matters without the executive directors and management present. Sir Iain Lobban, as independent adviser to the Board and its committees on cyber security and cyber threat management, attended relevant items at Board and Committee meetings to provide an independent and current view on the Group’s progress in this area. Our stakeholders Relationsh ips w ith our key stakeholders were considered extensively during Board and Committee meetings and in decis ion-mak ing, and in the ind iv idual and collective engagements that took place throughout the year. See Stakeholder engagement on page 121 and Section s172 statement on page 35 . Stakeholders Clients Employees Regulators and governments Investors Suppliers Society Attendance AGM Scheduled José Viñals (Group Chairman) Y 8/8 Bill Winters (Group Chief Executive) Y 8/8 Diego De Giorg i (Group Ch ief Financ ial Ofﬁcer) Y 8/8 David Conner Y 8/8 Gay Huey Evans, CBE Y 1/1 Phil Rivett Y 8/8 David Tang Y 8/8 Shir ish Apte Y 8/8 Robin Lawther, CBE Y 8/8 Jackie Hunt Y 8/8 Linda Yueh, CBE Y 8/8 Carlson Tong Y 3/3 Diane Jurgens Y 7/7 Lincoln Leong n/a 2/2 INEDs who stepped down in 2024 Gay Huey Evans (29 Feb) Carlson Tong (9 May) David Conner (30 December) INEDs who joined in 2024 Diane Jurgens (1 March) Lincoln Leong (2 November) 115 Standard Chartered – Annual Report 2024 Directors’ report Board discuss ion and act iv it ies in 2024 • Reviewed the Group’s strategy over two days at a Board and senior management offsite meeting, discuss ing progress aga inst the strategic prior it ies, the pivot to focus on cross-border and Afﬂuent banking, and execution challenges. The Board concluded that management is executing the strategy well and that it remains appropriate • Reviewed and approved the 2025–2029 Corporate Plan as a basis for preparation of the 2025 budget, receiv ing a report from the GCRO on the alignment of the plan to the Group's Enterprise Risk Management Framework (ERMF), and the Group Risk Appetite Statement • Reviewed and scrutin ised the strateg ic and operational performance of the business across client segments, product groups and regions, which included details of their prior it ies, progress, opportunit ies and response to current events • This included deep dives into the following areas: – Afﬂuent and Private Banking – Innovation and SC Ventures – Use of AI – Blue Sky session – China, India and Africa and the Kenya business. • Received and discussed regular corporate development updates. • Reviewed and discussed the Group’s sustainab il ity strategy. • Reviewed and discussed the progress and evolution of the Group’s Technology & Operations strategy. • Reviewed and discussed the Global Business Services strategy. • Approved exploring the potential sale of a small number of businesses to boost investment in the Group’s Afﬂuent franchise (Wealth & Retail Banking (WRB) businesses in Botswana, Uganda and Zambia). Strategy Board matters The Board approved a decis ion to explore opt ions to divest three African WRB businesses in Botswana, Uganda and Zambia, to refocus capital to the Group’s cross-border and Afﬂuent businesses in line with the Group’s strategic object ives. In tak ing this decis ion, the Board considered the long-term advantages for the Group and the businesses themselves, but also the shorter-term effects on the Group’s clients, employees and regulators before approving the decis ion. Once ﬁrm proposals for the d ivestments are made, the Board will scrutin ise the w ider stakeholder impacts carefully. Spotlight: Decis ion to explore exit of three WRB businesses in Africa Stakeholders: The Board offered its support for the decis ion to accelerate our strateg ic focus on offering cross-border corporate and investment banking capabil it ies and wealth management for afﬂuent clients. In Corporate & Institut ional Bank ing (CIB), we will concentrate on serving the complex needs of our largest global clients, leveraging our unique cross-border capabil it ies. In WRB, we will double our investment plans in our fast-growing and high-returning wealth management business for afﬂuent clients. This incremental investment will be funded by reshaping our Mass Retail business to focus on build ing a strong p ipel ine of future afﬂuent and internat ional bank ing clients. In taking this decis ion, the Board cons idered our investors’ interest in high-quality growth and improvement in our return on tangible equity over the medium term, as well as the interests of clients and employees in the relevant areas of the business. Spotlight: Strategic focus Stakeholders: • Received and discussed brief ings from management on informat ion and cyber- security (ICS) matters, and noted the successful delivery of the ICS strategic plan, transit ion ing ICS Risk to a steady state. • Reviewed work on projects to replace and upgrade data centres in Asia. • Received and discussed China data sovereignty risks . • Reviewed and discussed risk reports from the GCRO. • Reviewed the ﬁnd ings from the Bank of England’s (BoE) second resolvabil ity assessment. • Engaged with the Prudential Regulation Authority (PRA) on the ﬁnd ings of its 2024 Period ic Summary Meet ing Letter. • Assessed progress in continu ing to strengthen the Group’s risk culture. • Approved the Group's Risk Appetite for 2025 which included a considerat ion of pr inc ipal risks. • Approved the Group’s insurance coverage for 2024/2025 • Approved material changes to the ERMF. Risk management 116 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Board discuss ion and act iv it ies in 2024 continued During 2024, the Board approved two div idend payments, and announced buybacks of ordinary shares totalling $2.5 bill ion. The Board noted the importance of approving distr ibut ions and other capital management activ it ies with in an appropr iately prudent framework. Assurance was also sought from management regarding the protection of the Group’s capital posit ion and its abil ity to execute planned investment activ it ies for future growth. With the successful completion of our 2024 buybacks, in addit ion to total d iv idends for 2024 of 37 cents per ordinary share and a new $1.5 bill ion buyback announced today, we are well on our way to our $8 bill ion three-year cumulat ive shareholder distr ibut ions target. Spotlight: Share buyback • Monitored the Group’s ﬁnanc ial performance. • Approved the 2023 full-year and 2024 half-year results. • Monitored and assessed the strength of the Group’s capital and liqu id ity posit ions. • Provided oversight and monitored implementat ion of the F it for Growth (FFG) programme. • Considered the Group’s approach to capital management and returns and approved the 2023 ﬁnal div idend, 2024 inter im d iv idend, and two share buyback programmes. • Received half-yearly updates on, and discussed, the Group’s major investment programmes in 2024. • Reviewed changes to the Group’s segment and country ﬁnancial report ing. • Received half-yearly updates on, and discussed, investor relations matters. • Reviewed the 2024 Group and Management Team Scorecard. Stakeholders Financ ials and performance • Approved the Group’s UK and Australia Modern Slavery Statements. • Discussed progress made against the Group’s people strategy. • Considered the work completed to deliver on the Group’s culture aspirat ion and rece ived ins ights on the Group’s culture from the global employee engagement survey, My Voice. • Received updates on the progression and evolution of the Management Team’s and senior management’s succession plans following a number of recent appointments. • Reviewed the Board Divers ity Pol icy and concluded that no changes were required. • Reviewed an annual report update on the operation and effectiveness of the Group’s Speaking Up programme for 2023-2024. People, culture and values • Discussed the macroeconomic and geo- polit ical headw inds and tailw inds in the global economy, includ ing an assessment of the impact on the key drivers of the Group’s ﬁnancial performance. • Received internal and external brief ings and input across a range of subjects, includ ing: – Global context and the role of the global bank – The power and impact of technology in banking – Global geopolit ical outlook – The Middle East and the impact of the Israel-Gaza-Hezbollah conﬂict – Regulatory developments and updates. • Monitored developments and trends in corporate governance and the impact of changes to the UK and Hong Kong List ing Rules in order to ensure the Company’s governance structures remain compliant. • Received reports at each scheduled meeting from the Board committee chairs on key areas of focus for the committees and quarterly updates from SCBHK and its Audit and Board Risk committees. • Undertook train ing on d irectors’ duties and the governance landscape. • Approved the appointment of two new independent non-executive directors, Diane Jurgens and Lincoln Leong, to the Board, as well as changes to the membership of the Board’s committees. • Discussed and reviewed the independence, performance and annual re-election of the non-executive directors. • Approved the re-appointment of the independent adviser to the Board on cyber security and cyber threats. • Authorised potential conﬂicts of interest relating to directors’ external appointments. • Discussed the observations and themes aris ing from the 2024 internally facil itated Board and committees’ effectiveness review ahead of approving the 2025 Action Plan. • Reviewed and, where appropriate, approved updates to the Terms of Reference for each Board committee ensuring that they reﬂected best practice and relevant rules. • Further developed meaningful linkages between the Board and its subsid iar ies at chair, board and committee level (see page 122). External environment Governance 117 Standard Chartered – Annual Report 2024 Directors’ report Director induct ion Upon join ing the Board, our directors undertake a comprehensive tailored induct ion programme. Diane Jurgens Diane Jurgens was appointed as an INED and member of the CSC on 1 March 2024. She undertook a formal induct ion plan consist ing of a comb inat ion of meet ings with exist ing Board members, business and function heads and external counsel, receiv ing ta ilored train ing sess ions on our businesses and topics includ ing D irectors’ Duties, Governance Requirements, Strategy, Risk, Finance and Banking, and a deep dive into topics relevant to her membership of the CSC. Diane received train ing on the obl igat ions appl icable to directors of Hong Kong-listed companies on 14 February 2024 as required by Rule 3.09D of the Hong Kong List ing Rules, and has conﬁrmed that she understands those obligat ions. D iane jo ined the Board Risk Committee later in the year and is undertaking an induct ion programme for that. She also v is ited some key markets on the overseas Board trips to Shanghai and Beijing in April, to Mumbai in June and to Nairob i in November, as well as undertaking a trip to Sil icon Valley w ith the Group’s Management Team and a vis it to S ingapore where she met with senior management. Diane also attended a ﬁnanc ial services conference in New York, where she met members of our US senior management team. Lincoln Leong Lincoln Leong was appointed as an INED in November 2024. Lincoln is undertaking an induct ion programme cons ist ing of a combinat ion of meet ings with exist ing Board members, business and function heads and external counsel, receiv ing tailored train ing sess ions on our businesses and topics includ ing Directors’ Duties, Governance Requirements, Strategy, Risk, Finance and Cyber/artif ic ial intell igence and a deep d ive into topics relevant to his membership of the Audit Committee. Lincoln received train ing on the obl igat ions appl icable to directors of Hong Kong-listed companies on 2 October 2024 as required by Rule 3.09D of the Hong Kong List ing Rules, and has conﬁrmed that he understands those obligat ions. The Governance and Nominat ion Comm ittee reviews the induct ion programme of all new INEDs. The Comm ittee is satisf ied that all new INEDs have made excellent progress with their induct ion programmes. Ongoing train ing Ongoing development plans ensure that directors lead with conﬁdence and integr ity and promote the Group’s culture, purpose and values. Mandatory learning and train ing are also important elements of directors’ ﬁtness and propriety assessments as required under the UK Senior Managers and Certif icat ion Regime. During the year, all directors received a combinat ion of mandatory learn ing, brief ings, presentat ions from guest speakers and papers on a wide range of topics to ensure that they are well informed and that the Board remains highly effective. The table below gives further examples of directors’ train ing in 2024. 2024 director train ing overv iew Sustainab il ity Posit ion Statements Artif ic ial Intelligence Geopolit ical Outlook: 2024 elections and their likely impact on the evolving global order Audit and Corporate Governance (ACG) Social isat ion Recovery and Resolvabil ity Board simulat ion exercise Blue Sky Session Model Risk Management Directors’ duties and regulatory updates José Viñals Bill Winters Diego De Giorg i 1 Shir ish Apte David Conner² Jackie Hunt Diane Jurgens 3 n/a Robin Lawther Maria Ramos Phil Rivett Carlson Tong 4 n/a n/a n/a n/a David Tang Linda Yueh Lincoln Leong 5 n/a n/a n/a n/a n/a n/a 1 Diego de Giorg i joined the Board on 3 January 2024 2 David Conner stepped down from the Board on 30 December 2024 3 Diane Jurgens jo ined the Board on 1 March 2024 4 Carlson Tong stepped down from the Board on 9 May 2024 5 Lincoln Leong jo ined the Board on 2 November 2024 Director attended the session Director was unable to attend the session but received any accompanying material and had opportunit ies to ra ise questions and observations with the Group Chairman and Group Company Secretary Board train ing and development 118 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance In 2024, Board members received brief ings from and engaged with, diplomats, polit ical adv isers and polit ic ians, eminent economists, central bankers and former leaders of internat ional organ isat ions on top ics includ ing the evolv ing geopolit ical outlook, the impact of the conﬂicts in the Middle East, the potential impact of the incom ing adm in istrat ion in the United States , the role of the global bank, the power and impact of technology in banking, regulatory developments and the global macroeconomic environment. Committee train ing Members of the Board committees also received train ing relevant to their respective committees. In 2024, the Board Risk Committee received train ing on top ics includ ing the Internal Capital Adequacy Assessment Process (ICAAP) and the Internal Liqu id ity Adequacy Assessment Process (ILAAP), and Traded Risk. The Audit Committee received train ing on the proposed approach to material controls under the UK Code and a deep dive into sanctions. The CSC received train ing on nature and biod ivers ity. Indiv idual performance The Group Chairman led the performance review of ind iv idual director performance for 2024. These one-to-one sessions considered: • their performance against core competencies, includ ing their challenge and conduct in meetings and the Board’s expectation of directors • their time commitment to the Group, includ ing (where relevant) the potential impact of any outside interests • their ongoing development and train ing needs • the Board’s composit ion and refreshment • their level of engagement across the Group. These performance reviews are used as the basis for recommending the re-election of directors by shareholders at the AGM and to assist the Group Chairman with his own assessment of the Board’s effectiveness. In addit ion, the Group Chairman has responsib il ity for assessing annually the ﬁtness and propriety of the Company’s INEDs and the Group Chief Executive Ofﬁcer under the UK Senior Managers and Certif icat ion Regime. These assessments were carried out in respect of each INED and the Group Chief Executive and no issues in relation to ﬁtness and propriety were ident iﬁed. The Group Chief Executive carried out a sim ilar assessment for the Group Chief Financ ial Ofﬁcer, also w ith no issues ident iﬁed. Group Chairman’s performance Maria Ramos, as Senior Independent Director, reviewed José Viñals’ performance as Group Chairman, meeting with each director separately to take their feedback. Consolidated feedback was shared with him. Time commitment Our INEDs commit sufﬁc ient t ime in discharg ing the ir responsib il it ies as d irectors of Standard Chartered. In general, we estimate that each INED spent well in excess of their expected time commitments on Board-related duties. Access to independent advice All of the directors have access to the advice of the Group Company Secretary, who provides support to the Board and is responsible for advis ing the Board on governance matters. Directors also have access to independent professional advice at the Group’s expense where they judge it necessary to discharge their responsib il it ies as d irectors. 119 Standard Chartered – Annual Report 2024 Directors’ report Board effectiveness 1. The review took the form of an in-depth conversation between the Group Company Secretary and each of the Board members. The discuss ions explored some of the themes from the previous year’s review as well as probing the Board’s and committees’ performance through the year and how it could be further enhanced. 4. Key ﬁndings and recommendat ions were presented to the Board and an Action Plan for 2025 was approved. Details of key observations and the Action Plan are set out below. 5. Observations on committee effectiveness were shared with the relevant committee chairs and action plans for 2025 agreed. Details of key observations and committee action plans are set out in each committee report. 2. Results were compiled into a detailed report. 3. This report was shared with the Group Chairman and the Governance and Nominat ion Committee. 2024 Internal Board performance review process Progress against the 2024 Action Plan The 2024 Action Plan set out a number of actions to be achieved following the internally facil itated Board evaluat ion conducted in 2023. The 2024 Action Plan was regularly reviewed during the year and good progress had been made against many of the actions as evidenced by this year’s internally facil itated Board effect iveness review. Key observations from the 2024 internal effectiveness review • The Board was very satisf ied w ith its performance in a challenging year, during which it monitored potential geopolit ical sh ifts. It also oversaw the induct ion of a number of new directors and the selection of a new Chair in addit ion to its princ iple role of oversee ing the business. • Directors felt the Board remained effective in setting and progressing its prior it ies, with the focus on the princ iple drivers of the share price having a posit ive effect. • There was an improved focus on strategy in Board agendas. Papers had improved in terms of their focus and length, though there was still further to go. • Stakeholder engagement continued to be effective. Directors had many opportunit ies to meet w ith clients, employees, shareholders, other investors and regulators, much of which was focussed around market vis its to Ch ina, India and Kenya. However directors felt that the Board could have more opportunit ies to meet cl ients and would like to see more agenda time devoted to customers and competitor analysis. • Directors had the right mix of talent and functioned well together, with the Chairman continu ing to be h ighly regarded and effective. • The Board had received ins ights from external and internal speakers on a range of business, geopolit ical, econom ic, technology and sustainab il ity topics. 2025 Action Plan • Continue to improve the focus of agendas towards strategic items, while ensuring oversight of the control environment remains robust and continues to meet evolving challenges. • Continue to improve the focus of Board papers to clearly set out key issues and include relevant assumptions for challenge. • Reduce duplicat ion between the Board and Comm ittees, while ensuring the Board remains abreast of key issues with ing the rem it of the Committees. • Increase the time devoted at meetings to customers, competitor analysis and oversight of the Group’s transformation plans. 120 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Director independence The Governance and Nominat ion Comm ittee reviews the independence of each of the non-executive directors, taking into account any circumstances likely to impa ir, or wh ich could impa ir, the ir independence. Recommendations are then made to the Board for further considerat ion. In determ in ing the independence of a non-executive director, the Board considers each ind iv idual against, but not lim ited to, the cr iter ia set out in the UK Code and the Hong Kong List ing Rules. The Board considers all of the non-executive directors to be independent of Standard Chartered, and has concluded that there are no relationsh ips or c ircumstances likely to impa ir any ind iv idual non-executive director’s judgement. External directorsh ips and other bus iness interests Board members hold external directorsh ips and other outside business interests, details of which are set out in their biograph ies on pages 105 to 109. We recogn ise the sign iﬁcant beneﬁts that broader boardroom and other commercial, advisory and charitable activ ity prov ides. However, we closely monitor the nature and quantity of external directorsh ips our d irectors hold, in order to satisfy ourselves that any addit ional appo intments will not adversely impact their time commitment to their role at Standard Chartered, and to ensure that all of our Board members remain compliant with the PRA directorsh ip requ irements, as well as shareholder guidance on ‘overboarding’. Our established internal processes ensure that directors do not undertake any new external appointments without ﬁrst receiv ing formal approval of the Board. The Board has delegated authority to make such approvals to the Group Chairman, with the exception of his own appointments. Potential conﬂicts of interest are considered before any approval is given and, if any are ident iﬁed, appropr iate undertakings are sought and safeguards put in place. Before committ ing to an add it ional appo intment, directors conﬁrm the existence of any potential or actual conﬂicts that the role will not breach their lim it as set out by the PRA, and provide the necessary assurance that the appointment will not adversely impact their abil ity to cont inue to fulﬁl their role as a director of the Company. All directors continue to hold no more than four non-executive directorsh ips (or one execut ive directorsh ip alongs ide two non-executive directorsh ips) permitted under the General Organisat ional Requ irements Part of the PRA Rulebook. 121 Standard Chartered – Annual Report 2024 Directors’ report Board engagement with our stakeholders Considerat ion of our stakeholders’ v iews is important not only to Board decis ion-mak ing, but also to the Board’s considerat ion of our purpose, values and strategy. Dur ing the year, directors engaged collectively and ind iv idually with stakeholders. Informal and formal meetings with stakeholders across our markets help to provide INEDs with a comprehensive understanding of their views and the impact of the Group’s activ it ies. Clients and suppliers Mainta in ing productive and sustainable relationsh ips w ith our clients is a key prior ity. Throughout 2024, d irectors travelled with in our footpr int for meetings with clients in order to understand their developing needs. This year the Board vis ited e-commerce, technology and AI clients in Beijing and ﬁntech clients and suppliers in Shanghai, and held events for clients in Mumbai, Shanghai and Nairob i. Employees The Board places great importance on workforce engagement at all levels as a way of ensuring that the voice of colleagues is heard and reﬂected in decis ion-mak ing. It mainta ins a two-way dialogue through market-led engagements that enable the Board to listen to and better understand the lived experience of our colleagues across a range of markets, which is important to the Board in overseeing, supporting and, where necessary, challenging management in implement ing its people strategy. The Board continues to adopt an alternative workforce engagement method as set out in the UK Code. Our enhanced model, which saw its ﬁrst full year of operation in 2024, is designed to improve how Board members gather and share feedback obtained from colleagues who come from a cross section of the business, and use that to provide addit ional assurance for informat ion rece ived from employee surveys and other employee feedback tools. In 2024, the Board formally met colleagues in various markets, includ ing Shangha i, Mumbai and Nairob i, in specially arranged sessions. Employees continued Ahead of these, directors were briefed on the ind iv idual market, includ ing local trends prov ided by the annual employee engagement survey (My Voice) and other relevant data points offered by local and regional management teams. Feedback from these sessions was subsequently shared with the CSC and other stakeholders, where appropriate. Through these sessions directors were able to appreciate the challenges, successes, concerns and opportunit ies shared by colleagues in each of the markets. In addit ion to th is enhanced model, the Group has a comprehensive employee listen ing programme, through wh ich the Board has an opportunity to understand diverse employee perspectives. These tools include the annual employee engagement survey, a continuous listen ing programme, lifecycle surveys and diagnost ic research on spec if ic areas of focus, such as ﬂexible working and performance management. Details on all of our employee engagement can be found on page 188 . The Board is also informed about the operation and themes of issues raised under the Group’s Whistleblow ing programme. For more details on Speaking Up, please refer to page 95 . Regulators and governments The Board, either collectively or ind iv idually, engaged with relevant policy-makers and regulators in several jur isd ict ions across our global footprint, includ ing for example: the UK, EU, China, Singapore and India. Topics of discuss ion included changes in the regulatory landscape for ﬁnanc ial serv ices, developments in new regulation in such areas as dig ital assets and sustainable ﬁnance, and the issue of fragmenting rule sets across the global context. Investors During the year, we mainta ined a comprehens ive programme of engagement, includ ing w ith investor advisory bodies and credit rating agencies, and provided updates on progress made to transform our business to deliver improved returns. The Group Chairman and other Board directors had direct contact with investors and advisory voting bodies during the year, and received regular updates from the Investor Relations and Group Secretariat teams, includ ing reports on market developments. The Group Chairman, leads engagement with shareholders and hosted the 2024 AGM alongside fellow Board members, in addit ion to a large number of b ilateral meetings with investors. 122 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Investors continued In November 2024 the Group Chairman hosted a Stewardship Event alongside the chairs of all the Board committees. The Group Chairman provided an update regarding the Group’s strategy, includ ing w ith respect to sustainab il ity, and the Board committee chairs provided updates on the work of their committees during the year. This was followed by a presentation on Cybersecurity at Standard Chartered and a Q&A session. Bill Winters and Diego De Giorg i were the pr imary spokespeople for the Group in 2024 and engaged extensively with exist ing and potential investors during ind iv idual or group meetings and conferences. Judy Hsu, CEO, WRB, Standard Chartered PLC, hosted a virtual Afﬂuent investor seminar, provid ing an overview of the Afﬂuent business as well as ins ights on the strategy and proposit ions to grow the bus iness further. The Chair of the Remuneration Committee led an investor consultation on proposals for the new Remuneration Policy being put to shareholders at the coming AGM. More details on this are included with in the Remunerat ion Report. The AGM, held this year on 10 May 2024, is the Board’s key opportunity for engagement with retail shareholders, enabling discuss ion of the Group’s recent performance and strateg ic prior it ies. Questions received from shareholders covered a diverse range of topics, includ ing the Group’s strategy, cl ient transit ion plans, b iod ivers ity, the China market and sustainable ﬁnance. All Board-proposed resolutions were passed. We remain very grateful for the support of our shareholders. Society The Board places great importance in understanding, and consider ing the needs of, the commun it ies and env ironment in which we do business. Directors took the opportunity during a Board trip to Beijing to partic ipate in a youth career mentoring workshop with univers ity students. In Shangha i, Board members met entrepreneurs who were beneﬁciar ies of our community projects: Social Enterprise Support Project and Women in Entrepreneurship, the Bank’s signature Futuremakers programmes in China. In Mumbai, directors vis ited a Standard Chartered Futuremakers-supported tra in ing facil ity for persons w ith disab il it ies, wh ich provides train ing in core employabil ity sk ills such as dig ital l iteracy, dig ital problem solving, soft skills and career readiness, and engaged with the students of the programmes. In Nairob i we held a 'mentor’s den' for Futuremakers partic ipants and the ir alumni with members of the Board and the Group Management Team. Our subsid iar ies In 2024, the Group Chairman and INEDs engaged with the Group’s subsid iar ies through a number of forums. The Group Chairman attended a meeting of the Hong Kong board. He also attended the annual Audit, Board Risk and Remuneration Committee chairs’ calls with subsid iar ies, and engaged actively with subsid iary cha irs and INEDs on market vis its. On an annual basis, the Chairs of the SCBHK and Standard Chartered Bank (Singapore) Lim ited (SCBSL) Aud it Committees observe SC PLC/SC Bank Audit Committee meetings, and the Chair of the Audit Committee attends SCBHK and SCBSL Audit Committee meetings and provides an overview of SC PLC/ SC Bank Audit Committee key areas of focus. In March (after the announcement of full-year results), the Audit Committee Chair hosts an annual global call with subsid iary Aud it Committee members, where attendees listen to the prior it ies of the SC PLC/SC Bank Audit Committees and are encouraged to ask questions. As part of the annual performance and effectiveness review of EY, subsid iary Aud it Committee Chairs are inv ited to comment on the effect iveness of our Statutory Auditor via a structured questionna ire. Dur ing overseas Board vis its, the Aud it Committee Chair and other members meet with local Audit Committee Chairs, Heads of GIA and EY Partners. The Board Risk Committee Chair hosts an annual videoconference with chairs of the subsid iary board r isk committees. This year, items discussed during the call included: prior it ies and focus for the Board Risk Committee during 2024, the external environment and the GRCO’s prior it ies. The risk committee chairs of SCBHK and SCBSL jo ined one Group Board Risk Committee meeting and the Board Risk Committee Chair attended one SCBHK Risk Committee meeting. The Remuneration Committee Chair held a videoconference attended by the subsid iary remunerat ion committee chairs and the chairs of subsid iary boards that have remunerat ion responsib il it ies. The call was also attended by the Group Chairman, other members of the Group Remuneration Committee and executives from Human Resources, and Reward and the Corporate Secretariat. The call fostered knowledge sharing and best practice between the Group Remuneration Committee and the subsid iary remunerat ion committees and raised awareness of the prior it ies felt by the wider workforce in our markets. Topics that were discussed included: changes to the discret ionary incent ive approach for 2024; key messages; salary considerat ions; the removal of the 2:1 bonus cap; the 2025 Directors’ Remuneration Policy; and the Bank’s employee recognit ion platform, Apprec iate. Further detail on how the Group engaged with stakeholders more generally can be found on page 35 to 41 . 123 Standard Chartered – Annual Report 2024 Directors’ report Audit Committee I am pleased to present the report of the Audit Committee for 2024 and share with you the highl ights of our work: • Monitor ing the Group’s ongo ing implementat ion of UK ACG reforms, includ ing the work underway on process and controls mapping, testing and quality assurance, train ing, tooling and business readiness. • Applying scrutiny and challenge of credit impa irments, key accounting issues, sign iﬁcant account ing estimates and judgements made by management to ensure that they are appropriate and clearly communicated in the Group’s public disclosures. Cognisant of the challenging external environment, we placed particular focus on the Group's investment in China Bohai Bank (Bohai), and the Group’s exposures to commercial real estate (CRE) in Mainland China, Hong Kong and more broadly. The Committee reviewed carrying values of loans and advances to commercial and consumer/retail customers and the related overlays. Focus was placed on the Group’s use of alternative performance measures (APMs), which the Committee reviewed and challenged. We reviewed and discussed management's review of capital ised software intang ibles, includ ing test ing performed and planned process improvements. • Paying close attention to Data Risk management, overseeing the work underway to manage risk buy-down and drive end-to-end alignment across our businesses and functions. • In conjunction w ith the Board and Board Risk Committee, Financ ial Cr ime Risk remained a key prior ity w ith increased Money Laundering Reporting Ofﬁcer reporting throughout the year. Deeper discuss ions were held into topical matters covering the Group’s approach to managing sanctions- related risks; and how to manage Financ ial Cr ime Compliance (FCC) in an evolving risk landscape. All Board members were inv ited to join these d iscuss ions. • Remain ing focused on the Group’s approach to manag ing Conduct Risk, to ensure that this continues to embed in our businesses and functions, in an evolving risk landscape. • Review ing the annual Board report on Consumer Duty, consider ing the beneﬁts of the UK rules and how the good practices can be leveraged in our markets for the beneﬁt of our customers. Phil Rivett Chair of the Audit Committee Committee composit ion and attendance Phil Rivett Shir ish Apte David Conner 1 Jackie Hunt Lincoln Leong 2 Maria Ramos 3 Carlson Tong 4 1 / 1 1 / 1 1 / 1 1 / 1 n/a 0 / 1 1 / 1 Ad hoc 8/8 8/8 8/8 8/8 1/1 8/8 4/4 1 David Conner stepped down from the Committee on 30 December 2024 2 Lincoln Leong jo ined the Comm ittee on 2 November 2024 3 Maria Ramos did not attend one ad hoc meeting due to a prior business commitment, however she received the papers and provided feedback 4 Carlson Tong stepped down from the Committee on 9 May 2024 As part of, and in addit ion to most scheduled Comm ittee meetings, the Committee held private members-only meetings. The Committee also met with the Group’s Statutory Auditor, EY, and the Group Head, Internal Audit, without management being present. The Committee members have detailed and relevant experience and bring an independent mindset to their role. Addit ional attendees The Group Chairman; Group Chief Executive; Group Chief Financ ial Ofﬁcer; GCRO; Group Head, Internal Audit; Group Head, Conduct, Financ ial Cr ime & Compliance (CFCC); Group Head, Central Finance; representatives from Group Finance; Group Statutory Auditor; and the Group Company Secretary also attended Committee meetings. Purpose and responsib il it ies The Committee is responsible for oversight and advice to the Board on matters relating to ﬁnanc ial, non-ﬁnancial and narrative reporting. Its role is to review, on behalf of the Board, the Group’s internal controls, includ ing internal ﬁnanc ial controls. The Committee exercises oversight of the work undertaken by the internal CFCR (previously CFCC) and GIA functions and EY. The Committee Chair reports to the Board on the Committee’s key areas of focus following each meeting. The Board is satisf ied that Ph il Rivett has recent and relevant ﬁnancial exper ience. Phil is a chartered accountant with more than 40 years’ experience of professional accountancy and audit focused on banks and insurance companies. He led the audits of a number of leading banks during his career as senior audit partner of PricewaterhouseCoopers. He is also chair of the audit committee for Nationw ide Bu ild ing Soc iety. The Committee has written Terms of Reference that can be viewed at sc.com/termsofreference “In addit ion to the items you would expect the Committee to have reviewed, we have focused on the implementat ion of the UK Aud it and Corporate Governance reforms; and the impact of an ever changing and challenging external environment on our investments and key controls, processes and procedures.” 124 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Activ it ies during the year Financ ial report ing • Satisf ied itself that the Group’s accounting polic ies and pract ices are appropriate. • Reviewed the clarity and completeness of the disclosures made with in the publ ished ﬁnanc ial statements, and considered, satisf ied itself and recommended to the Board that the processes and procedures in place ensure that the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the informat ion necessary for shareholders to assess the Group’s posit ion and performance, bus iness model and strategy, and the business risks it faces. • Monitored the integr ity of the Group’s publ ished ﬁnanc ial statements, such as half-year and quarterly reports, and formal announcements relating to the Group’s ﬁnanc ial performance, review ing the s ign iﬁcant ﬁnancial judgements, est imates and accounting issues. • Considered the forthcoming UK ACG reforms and discussed how the Group will implement the new proposals. In particular, the Committee probed the alignment between the scope of management's proposals and that of the external ﬁnancial aud it; the management of third-party controls; assurance that may be required; and the importance of thorough documentation. • Sign iﬁcant account ing judgements considered during 2024 are shown below. • The Committee can conﬁrm that the key judgements and sign iﬁcant issues reported are consistent with the disclosures of key estimat ion uncerta int ies and cr it ical judgements, as set out in Note 1 starting on page 295. Key area Action taken Impairment of loans and advances • Reviewed and challenged, on a quarterly basis, reports detail ing the compos it ion and cred it quality of the loan book, concentrations of risk and provis ion ing levels, and the key judgements made in applying the Group Impairment Provis ion ing Policy. • Assessed the expected credit loss (ECL) model output, reviewed, considered and challenged judgmental post model adjustments and management overlays in both the wholesale and retail portfolios on a quarterly basis that were required to estimate ECL. • Reviewed and discussed updates highl ight ing expected losses in the Mainland China and Hong Kong CRE sector and sovereign downgrades. In respect of high-risk credit grade exposures, received brief ings on bus iness plans, includ ing remed ial actions and management assessment of the recoveries and collateral available. Carrying value of investments in associates and subsid iary undertakings • Reviewed and discussed management’s value in use assessment on the Group’s investment in its associate Bohai, as well as the associate accounting analysis, and management’s impa irment assessment of investments in subsid iary undertak ings. Valuation of ﬁnanc ial instruments held at fair value • Received reports and updates at each reporting period detail ing the key processes undertaken to produce and validate valuations of ﬁnanc ial instruments, includ ing any changes in methodology from prior years and sign iﬁcant valuat ion judgements. • Received regular updates on the level of unsold posit ions in the syndicat ion’s portfol io and the valuation of these posit ions and plans for sell down. • Reviewed credit valuation adjustments, debit valuation adjustments, funding valuation adjustments and own credit adjustments, and considered the explanation and rationale for any sign iﬁcant movements. Other areas of focus Goodwill impa irment • Reviewed the carrying value of goodwill by review ing management’s annual assessment of goodwill impa irment, cover ing key assumptions (includ ing forecast d iscount rate and sign iﬁcant changes from the previous year), headroom availab il ity and sensit iv it ies to poss ible changes in key assumptions and related disclosures. Capital isat ion of software intang ibles • Received and discussed updates on management’s review of capital ised software intang ibles. • Received results of management's testing and coverage. • Reviewed management’s assessment of impa irment and planned improvements to processes to capture evidence supporting capital isat ion and related controls. Disposals of businesses in the Africa and Middle East (AME) region • Reviewed and challenged the accounting treatment and impact of the disposals of the businesses in the AME region. Restructuring costs • Reviewed and considered, on a quarterly basis, income statement charges and credits classif ied as restructuring. Taxation • Considered a paper setting out the key drivers and volatil ity of the Group’s underly ing effective tax rate (ETR) and the Group’s key tax risks and judgements. The Committee considered the elements that impact the Group’s tax rate and efforts to manage the Group’s ETR. • Approved the updated UK Tax Strategy for the year ending 31 December 2024. • Approved country-by-country reporting for the year ended 31 December 2023. Provis ions for legal and regulatory matters • Received and discussed updates on major disputes and sign iﬁcant regulatory government invest igat ions facing the Group. • Reviewed management’s judgements on the level of provis ions and the adequacy of d isclosure. 125 Standard Chartered – Annual Report 2024 Directors’ report Other areas of focus Other accounting estimates and judgements • Received and considered management updates contain ing other s ign iﬁcant account ing judgements (includ ing w ith regard to Korea Equity Linked Securit ies, hyper inﬂat ion and other sign iﬁcant fore ign exchange revaluations). Going concern assessment and viab il ity statement • Reviewed management’s process, assessment and conclusions with respect to the Group’s going concern assessment and viab il ity statement, includ ing forward-look ing Corporate Plan cash ﬂows, results of various stress tests that explore the resil ience of the Group to shocks to its balance sheet and business model, princ ipal and emerg ing risks, liqu id ity and capital posit ions, and key assumptions. • Ensured that the going concern assessment and viab il ity statement are consistent with the Group’s Strategic report and other risk disclosures. Further details can be found on pages 45 and 297 Fair, balanced and understandable • Considered, satisf ied itself and recommended to the Board that the processes and procedures in place ensure that the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the informat ion necessary for shareholders to assess the Group’s pos it ion and performance, business model and strategy, and the business risks it faces. Examples of deeper discuss ions into specif ic top ics • UK ACG reforms implementat ion: Considered the impact of legislat ive and regulatory developments and impl icat ions for the Group. The Committee discussed the beneﬁts for the Group more broadly on work underway to strengthen processes, controls and assurance. Regular reports were received from management through Committee meetings and informal interact ive sessions focused on internal controls over ﬁnanc ial report ing and wider reporting (includ ing key informat ion in the Annual Report) and the Group’s deﬁn it ion of material controls, which continues to be worked through. These interact ive sess ions were opened up to all Board members. ACG reporting to the Committee and informal sessions will continue to be a key focus in 2025 , includ ing address ing the aspects of disclosures, ongoing process and declarations and ensuring all internal frameworks and processes are in place for the 1 January 2026 legislat ive go-l ive date. EY also reported to the Committee on their observations in relation to the programme, in the context of their external audit. • EY special ist partner top ical overviews: Received a presentation from EY special ist partners on the assurance work performed by EY on sustainab il ity reporting and how the Group is posit ioned in relation to peers. Further presentations were provided on ACG market perspective and ways to innovate audit work, includ ing current and future tools that are and could be deployed. • Strategic Regulatory Reporting Programme: Conﬁrmed support for the establishment of a dedicated Strategic Regulatory Reporting Programme to improve and strengthen all aspects of regulatory reports, with regular progress updates provided to the Committee. • Aspire programme: Discussed an update on the Group’s Aspire programme (a programme launched to deliver a modern technology system and data landscape for ﬁnanc ial management and reporting) to ensure that the expected deliverables remain on track, and how this interl inks with ACG and FFG programmes. • Internal ﬁnancial controls: Received and discussed a paper setting out the approach taken to safeguard the production of the Group’s ﬁnanc ial books and records. • APMs: Reviewed and discussed two papers on the Group’s princ iples in deﬁn ing and use of APMs. The treatment of costs from FFG proposals on APMs were also considered. • New ﬁnancial report ing and planning: Reviewed and supported the changes to the basis of segment/country/cluster reporting for internal and external purposes. • Finance resourcing: Reviewed and discussed a paper provid ing assurance that the Account ing, Financ ial and Regulatory Report ing function is adequately and appropriately resourced, in light of continued implementat ion of add it ional controls under ACG reforms, FFG and the deployment of the Aspire programme. • Data Risk management: Received and discussed papers outlin ing the progress be ing made to manage and reduce Data Risk exposure, cognisant of the pervasive nature of data quality and rapidly evolving regulatory landscape. Towards the end of the year, a detailed discuss ion was held on the Group’s refreshed Data Strategy, covering all dimens ions of Data R isk, and the status of the forward-looking delivery roadmap. This will continue to be an area of focus for 2025 and beyond. • FCA UK Consumer Duty: Reviewed the annual Board report on Consumer Duty and discussed the beneﬁts experienced as a result of UK Consumer Duty requirements; whether these beneﬁts and good practices can be leveraged in our markets; and the importance of reaching out to clients to check that products remain the right ones during their lifecycle. 126 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Other areas of focus Group Statutory Auditor, EY • Reviewed and discussed the risks ident iﬁed by EY’s aud it planning, as well as EY’s planned audit strategy in response to those risks. Phil Rivett attended EY’s audit planning meeting for the Group. • Satisf ied itself that EY has allocated sufﬁc ient and su itably experienced resources to address these risks and reviewed the ﬁnd ings from the aud it work undertaken. • Sought and received assurance that no undue pressure has been asserted on the level of audit fees, to ensure that audit work can be conducted effectively and independently. • Conducted an annual review of the performance, effectiveness and independence of EY. Input was received from Committee members, chairs of subsid iary aud it committees, the Group Management Team, cluster/country chief ﬁnanc ial ofﬁcers, members of the Group F inance Leadership Team and GIA senior leadership. The results of these inputs were discussed by the Committee. Overall, it was concluded that EY is considered to be effective, object ive and independent in its role as the Group’s Statutory Auditor. The Committee recommended to the Board that the re-appointment of EY as the Group’s Statutory Auditor for a further year be recommended to shareholders at the 2025 AGM. • EY provided effective challenge to management’s assumptions as set out in their report on pages 276 to 286 and demonstrated professional sceptic ism in their audit results reports and inter im rev iew reports to the Committee and through discuss ions at Comm ittee meetings. • Received and discussed a paper setting out EY’s control themes and observations from the 31 December 2023 year-end audit, as well as an update on these matters later in the year. • Received EY's private Written Auditor Reporting to the PRA for the year ended 31 December 2023 and reviewed and discussed EY’s approach to Written Auditor Reporting for the year ended 31 December 2024. Updates from management were also provided. • Received reports from EY and management regarding EY’s FCA Client Assets audit of Standard Chartered Bank. The Committee met privately with EY at the end of certain Committee meetings, without management being present. Phil Rivett met regularly with the EY partners leading the Group’s audit during the course of the year. The Company complies with the Statutory Audit Services for Large Companies Market Investigat ion (Mandatory Use of Competit ive Tender Process and Aud it Committee Responsib il it ies) Order 2014. As a UK public interest entity, the Group is required to tender the audit every 10 years and rotate the auditor every 20 years. As the Committee remains satisf ied w ith EY’s performance, the Group has no current intent ion of tender ing for an alternative external auditor to commence before the end of the current required 10-year period. Any tender would be in respect of 2030 onwards, and would likely occur in 2027, in order to allow sufﬁc ient t ime to plan for a transit ion. At the conclusion of the 2024 audit, EY will have been the Group’s Statutory Auditor for ﬁve years. The lead engagement partner up to 2024 was David Canning-Jones, who has a background of audit ing banks and understands the markets in which the Group operates. Following completion of the audit for the year ending 31 December 2024, Micha Missak ian, an EY sen ior audit partner who is also experienced in audit ing global bank ing inst itut ions, will assume the role of the lead audit engagement partner. A thorough shadowing process has taken place between the two lead partners. The Company’s last audit tender was in 2017, following which EY was appointed as the Group’s Statutory Auditor for the ﬁnanc ial year ended 31 December 2020. EY was re-appo inted as the Group’s Statutory Auditor for the ﬁnanc ial year ended 31 December 2024 at the 2024 AGM. Non-audit services • The Group spent $13 mill ion on non-aud it services provided by EY (includ ing aud it-related assurance services such as quarterly and half-year reviews and regulatory reporting). Details of fees for audit and non-audit services can be found in note 38 to the ﬁnanc ial statements. Further details of the Group's approach to non-audit services can be found on pages 190 and 191. Audit Committee Min imum Standard • Considered the Audit Committees and External Audit Min imum Standard publ ished by the Financ ial Report ing Council in May 2023 and is satisf ied that the Comm ittee met the relevant requirements. Investors were given the opportunity to discuss the scope of the external audit with the Audit Committee Chair at the Group Chairman’s Stewardship Event in November 2024. Internal controls • Discussed reports from GIA that provide GIA’s view on the system of internal controls across all risk types, business and country functions, includ ing summary h ighl ights of the most s ign iﬁcant matters ident iﬁed by GIA and areas of themat ic interest that have arisen as part of the audits and warrant the Committee’s attention. On a period ic bas is, GIA reports on any overdue remediat ion of ﬁndings. The Board R isk Committee and the CSC discussed separate reports from the Group Head, Internal Audit on GIA’s appraisal of controls across key risks, subject to each committee’s oversight. Further details on internal controls can be found on pages 187 to 188 127 Standard Chartered – Annual Report 2024 Directors’ report Other areas of focus Group Internal Audit (GIA) GIA’s primary role is to help the Board and senior management protect the assets, reputation and sustainab il ity of the Group through independent, risk-based, timely and object ive assurance, adv ice, ins ight and fores ight. Given this role, Phil Rivett held regular monthly meetings with the Group Head, Internal Audit and met regularly with members of his senior management team to ensure that he had vis ib il ity of the ir work and key emerging issues. The Group Head, Internal Audit also met privately with the Committee. The Committee: • Assessed the role and effectiveness of the GIA function and reviewed and monitored GIA’s progress against the 2024 Audit Plan; and the review and monitor ing of aud it themes, trends and sign iﬁcant issues. Sign iﬁcant changes to the Aud it Plan were also discussed and approved by the Committee. • Reviewed and approved GIA’s 2025 Audit Plan, resourcing and budget, and was satisf ied that these were appropriate. • Reviewed and approved the refreshed GIA Charter. • Received and discussed reports from the Global Head, Audit Quality Assurance on the Quality Assurance function’s view of the quality of GIA’s audit work, includ ing trends observed and notable outcomes and opin ions. • Scrutin ised any long-overdue issues raised by GIA and requested management develop risk reduction plans for items with long closure periods to be monitored by GIA. • Reviewed GIA’s functional strategy, includ ing GIA’s m iss ion, v is ion and pr ior it ies. The Committee is satisf ied w ith the independence and object iv ity of the GIA function. • In early 2024, the Committee commiss ioned Delo itte to perform an independent External Quality Assurance review of GIA, as required every ﬁve years. The Committee was pleased to note the report’s conclusions that GIA generally conformed with industry standards and requirements in key markets and is an independent and effective function. This view is supported by GIA’s self-assessment, internal quality assurance results and posit ive feedback from regulators in 2024. Improvement actions ident iﬁed from internal and external reviews are in progress and are regularly reported to the Committee. • The Committee also conducted a performance assessment of GIA for 2024. The Committee was satisf ied w ith GIA's performance against its object ives agreed w ith Phil Rivett at the beginn ing of this year, and with GIA’s posit ion and value in the organisat ion and its impact, effectiveness and efﬁciency. CFCR (with effect from 1 January 2025 – formerly CFCC) In 2024, the Committee was updated on and discussed: • regulators’ supervisory focus areas, regulatory updates and forward-looking themes • the status of the Group’s core college regulatory relationsh ips and enforcement matters • topical compliance risks and issues • reports from the Group Money Laundering Reporting Ofﬁcer on the operation and effectiveness of the Group’s systems and controls for combating money laundering in accordance with regulatory requirements • Group in it iat ives to upl ift the management of Conduct Risk includ ing the enhanced Code of Conduct and Ethics • the Conduct Risk Management Standard • the function’s operating model. The Committee also held two deep dive discuss ions into topical ﬁnanc ial conduct r isk (FCR) matters: • The ﬁrst deep dive discuss ion covered the Group’s sanct ions programme, the types of risks to which the Group is exposed through our various products, businesses, and clients and our approach to risk management, the effectiveness of our controls, the Group’s perspective and assessment of emerging risks and the evolving nature of sanctions. • The second, facil itated by an external speaker from K2 Integr ity, focused on how to manage FCC in an evolving risk landscape, the types of FCC risks confronting the Group, lessons learned from recent applicable case studies, FCC cultural and programmatic risks, and FCC regulatory and geopolit ical r isks. K2 Integrity provided a report setting out reﬂections and recommendations, which the Committee will continue to discuss in 2025, alongside Group Money Laundering Reporting Ofﬁcer reports. Both discuss ions were opened up to all Board members and informed our think ing and understanding of these important topics. Phil Rivett met regularly throughout the year with the former Group Head, CFCC ,and the current Group Head, CFCR. Speaking Up The Committee reviewed and discussed an annual report on the operation and effectiveness of Speaking Up, the Group’s conﬁdent ial wh istleblow ing programme. The report prov ided the Committee with assurance of the Group’s ongoing compliance with the PRA and the FCA’s Whistleblow ing Rules. Once rev iewed and discussed by the Committee, this report was submitted to the Board. In 2024, the Committee Chair received updates on Speaking Up outside of formal Committee meetings, and regularly met with senior management from our Conduct and Compliance teams. 128 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Other areas of focus Interaction with regulators • Phil Rivett attended a trilateral meeting with EY and the PRA and also met with the PRA in his capacity as Audit Committee Chair. Linkages with subsid iary audit committees • In 2024, Phil Rivett attended an audit committee meeting of each of SCBHK and SCBSL. The audit committee chairs of SCBHK and SCBSL attended one Standard Chartered PLC Audit Committee meeting. This practice will continue in 2025 to reinforce these important linkages. • Phil Rivett hosted an annual videoconference with the chairs of subsid iary aud it committees and INEDs in March 2024. Please refer to page 122 on linkages between the Committee and chairs of subsid iary aud it committees. Committee effectiveness in 2024 The 2024 Board and Committees’ effectiveness review was conducted internally, facil itated by the Group Company Secretary, and in accordance with the UK Code. Progress against last year's Action Plan The Action Plan set out a number of actions aris ing from the internally facil itated effect iveness review conducted in 2023. The 2024 Action Plan was regularly reviewed during the year and good progress has been made against the actions. Key observations from the 2024 internal effectiveness review The composit ion of the Comm ittee and its areas of focus during the year have been stable in 2024, allowing the review to focus more on the dynamics of the Committee includ ing interact ions w ith advisors and management. Feedback on the Committee’s function ing and effectiveness was posit ive and spec if ically highl ighted the follow ing: • The Committee’s composit ion and dynam ics were rated highly, with the Committee beneﬁtting from the members’ w ide range of skills and experience, and the Chair’s collegiate working style. This will need to be reviewed in 2025, following the retirement of two Committee members in 2024. • Contribut ions from management, GIA and EY were rated highly, with Committee members prais ing all for the ir availab il ity and will ingness to d iscuss topics; give brief ings outside of meetings; and for their strong, pro-active engagement with the Committee. • Good progress was made on the key topics of Data Risk management and ACG reforms and will continue to be key areas of focus for the Committee in 2025. 2025 Action Plan The 2025 Action Plan for the Committee reﬂects suggestions from the review and continues to build on the solid progress made last year: • Continue to monitor the performance of EY, includ ing the trans it ion to the new lead partner. • Work closely with the Board Risk Committee to monitor progress with the implementat ion of the ACG reforms. • In conjunction w ith the Governance and Nominat ion Comm ittee, consider the composit ion of the Comm ittee to ensure it mainta ins the requ ired skills. 129 Standard Chartered – Annual Report 2024 Directors’ report Board Risk Committee I am pleased to present the report of the Board Risk Committee for 2024 and share with you the highl ights of our work: • Remain ing abreast of the impacts of geopolit ical and sovereign risks, together with those aris ing from the elect ion super-cycle on our business. • Continu ing to embed robust governance and best pract ice for ICS Risk across our footprint, cognisant of the rapidly evolving risk landscape. • Overseeing operational and technology risks, includ ing our substantial technology simpl iﬁcation programmes. • Paying close attention to transformational change management programmes with strategic importance for the Group and organisat ional change more broadly. • Regularly monitor ing ﬁnancial r isk concentrations and review ing stress test ing to ensure we understand and mit igate any vulnerab il it ies in our portfolio. • Testing and improv ing our recovery and resolut ion capabil it ies. • Monitor ing the key r isks and opportunit ies ar is ing from our FFG objectives to ensure the cont inued efﬁcacy of our risk and control environment. • In conjunction w ith the Board and Audit Committee, continu ing to mon itor Financ ial Cr ime Risk, which is becoming more prevalent and needs careful protection against for the Group, our clients and stakeholders more broadly. Maria Ramos Chair Board Risk Committee Committee Composit ion and Attendance Maria Ramos Shir ish Apte David Conner¹ Gay Huey Evans, CBE² Robin Lawther, CBE Phil Rivett David Tang³ Carlson Tong⁴ 3/3 3/3 3/3 n/a 3/3 3/3 3/3 1/1 Ad hoc 6/6 6/6 6/6 1/1 6/6 6/6 6/6 2/3 1 David Conner stepped down from the Committee on 30 December 2024. 2 Gay Huey Evans stepped down from the Committee on 29 February 2024. 3 David Tang stepped down from the Committee on 1 January 2025. 4 Carlson Tong stepped down from the Committee on 9 May 2024. Carlson did not attend one meeting due to a prior business commitment. Note: Jackie Hunt and Diane Jurgens jo ined the Comm ittee on 1 January 2025. As part of, and in addit ion to scheduled Comm ittee meetings, the Committee held private members-only meetings. The Committee’s membership comprises INEDs who have a deep and broad experience of banking and the risk factors affecting the Group, includ ing geopol it ical, econom ic, IT, Financ ial Cr ime and general business risks. Addit ional attendees The Group Chairman; Group Chief Executive; Group Chief Financ ial Ofﬁcer; GCRO; Group Head of Enterprise Risk Management; Group Treasurer; Group Head, Conduct, Financ ial Cr ime & Compliance; Group Head, Internal Audit; the Group’s Statutory Auditor and the Group Company Secretary also attended Committee meetings. Sir Iain Lobban, our cyber adviser to the Board, regularly attended discuss ions on ICS R isk and technology- related matters. EY attended most Committee meetings in 2024. Purpose and responsib il it ies The Committee is responsible for exercis ing overs ight, on behalf of the Board, of the key risks of the Group. It reviews the Group’s Risk Appetite Statement and ERMF and makes recommendations to the Board. The Committee Chair reports to the Board on the Committee’s key areas of focus following each meeting. The Committee has written Terms of Reference that can be viewed at sc.com/termsofreference “We have been cognisant of geopolit ical and other changes that might occur across the world and have the potential to impact every corner of our business. The Committee has worked closely with management to monitor and mit igate exist ing and emerg ing risks; and to take advantage of the new opportunit ies that have ar isen to better serve our clients and communit ies.” 130 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Activ it ies during the year Key matters Geopolit ical and sovereign risks • Received regular reports on the potential impl icat ions for the Group from global conﬂicts, and any potential impacts to the Group from the decoupling of China and the US. Ensured the Committee remains well informed of, and forward-looking to, the evolving geopolit ical risk environment. • The 2024 election super-cycle led to a number of discuss ions, whereby we cons idered a wide range of potential policy changes and their impl icat ions for the Group, includ ing impacts for our clients, markets, colleagues and regulators, which present both risks and opportunit ies. Operational, Technology and Cyber Risk • Reviewed and discussed reports on the risk environment, includ ing the progress of key transformational change management and technology simpl iﬁcation programmes, scrutin is ing the overall risk assessments, resources, capabil it ies and delivery against milestones. • Discussed reports on data centre resil ience and updates on the Group’s cloud strategy, w ith input and representation from the three lines of defence. • Reviewed and discussed the replacement of our core banking applicat ions and data centres. • Monitored progress made on the ICS Strategic Plan, includ ing regular rev iew of ICS Risk Appetite and risks that could impact delivery of the strategic plan. • Monitored the overall ICS Risk Proﬁle, includ ing rev iew of the Chief Information Security Ofﬁcer Control Indicators report, as well as any areas of concern highl ighted. • Received regular external perspective from Sir Iain Lobban, our cyber adviser to the Board, along with representation from the three lines of defence. • Conducted deep dive sessions into Third Party Security Risk Management and Insider Risk. • Paid particular attention to systems, people, governance and embedding best practice across our footprint, to ensure that resources are maxim ised, fac il itat ing a culture of continuous discovery and development. Recovery and resolution planning • Continued to oversee how the Group tested and improved its resolution capabil it ies in line with the Bank of England’s (BoE) Resolvabil ity Assessment Framework. Th is year, we conducted a number of subsid iary board s imulat ion exerc ises for our Korea, Singapore and China boards; and tested our recovery and resolution planning capabil it ies in the UK. • Continued to oversee work to improve the Group’s wind-down capabil it ies, includ ing its operational execution, and work to comply with the PRA’s Trading activ ity w ind down requirements. • Reviewed and discussed the Group’s Resolvabil ity Publ ic Disclosure and regulatory feedback from the BoE and PRA. Other areas of focus Risk Appetite • Reviewed, challenged and approved at half year changes to the Group’s Risk Appetite and Board metrics. • Reviewed, challenged and recommended to the Board changes to the Group’s Risk Appetite Board metrics. • Challenged whether the Risk Appetite appropriately sets boundaries for each Princ ipal R isk Type (PRT). • Reviewed and discussed the Risk Appetite affordabil ity assessment aga inst a range of stress scenarios, concluding that the proposed Risk Appetite remains affordable. • Monitored actual exposures throughout the year relative to Risk Appetite lim its us ing Board Risk Information reports. Further details of the Group’s Risk Appetite are set out on page 28 Enterprise Risk Management Framework (ERMF) • Reviewed proposed material changes to the ERMF, following the 2024 annual review, and recommended these changes to the Board for approval. • Assessed the approach and key outcomes of the 2024 annual effectiveness review of the ERMF. Afﬁrmation was rece ived from the GCRO that the Group’s risk management and internal control framework is materially effective, and ident iﬁed areas for improvement were highl ighted for management and the Comm ittee's attention. • Received reports on the Group’s PRTs at all scheduled meetings and also conducted deeper discuss ions on top ics outlined on page 28. Further details of the ERMF are set out on pages 196 to 200 and further details on PRTs , includ ing the deﬁnit ions of each, are set out on page 28 131 Standard Chartered – Annual Report 2024 Directors’ report Other areas of focus Model Risk • Discussed the extension of the exist ing Model R isk Management (MRM) framework and annual controls attestation, as part of requirements set by PRA relating to MRM for banks (SS1/23). • Received updates on the Group Model Risk proﬁle, Risk Appetite and the progress of Model Risk strategic in it iat ives, and d iscussed material risks. • Received train ing on Model R isk, which was opened up to all Board members. Treasury Risk • Received reports from the Group Treasurer at each scheduled meeting covering: market condit ions and developments; fund ing, liqu id ity and interest rate risks, balance sheet movements and forecast, capital and leverage, includ ing the est imated impact of Basel 3.1, recovery and resolution planning includ ing the Group’s Resolvab il ity Assessment, and applicable regulatory updates. • Considered and discussed the Group’s capital and liqu id ity posit ion, along w ith the evolving regulatory environment, in the context of regulatory submiss ions. • Reviewed, discussed and challenged papers on Interest Rate Risk in the banking book, the Treasury Hold to Collect securit ies portfol io, the Group’s ICAAP and the Group’s ILAAP. Stress testing • Provided oversight, challenge and, where required, approval for: – the Group's ICAAP submiss ion, includ ing scenar ios analysis, stress test outcomes and reverse stress test results – the Group's ILAAP submiss ion, includ ing the scenar io analysis and stress test results – the updated Group Recovery Plan, includ ing stress tests results. • Reviewed, discussed and challenged the outcomes and key ﬁnd ings of stress tests, part icularly management’s assumptions and the quality of informat ion prov ided, to monitor resil ience. For further detail on the Committee’s work on stress testing see pages 197 to 198 The Committee’s work on Resolvabil ity is set out on page 203 Credit Risk • Received and discussed updates on Credit Risk, with China-related impa irments be ing a key area of focus, cognisant of the work of the Audit Committee. These discuss ions were further enhanced through deep dives into various countries, sovereigns, industr ies and bus iness/ client segments. Traded Risk • Received and discussed reports on developments and changes in the risk proﬁle of Treasury and Financ ial Markets and res il ience of the F inanc ial Markets bus iness. • Discussed a report on the CIB Fair Value portfolio, which included an update on the strategy and risk infrastructure for ﬁnanc ial inst itut ion clients. • Received train ing on Traded R isk, which was opened up to all Board members. Regulatory • Received regular updates from the three lines of defence, which provided the Committee with oversight of the Group’s progress on the following areas: – Recovery and Resolution Planning – Resolvabil ity Assessment – Trading Activ ity W ind-Down – Operational Resil ience, includ ing approval of the Operat ional Resil ience Group Self-Assessment submitted to the UK regulators; and material changes to the Group’s Important Business Services and Impact Tolerance Statements – BCBS 239 Self-Assessment and Roadmap, and the status of the Group’s compliance with BCBS 239. • Discussed key communicat ions rece ived from the PRA and FCA • Discussed the coverage of 2024 regulatory prior it ies and the Group’s approach to mainta in ing ongoing engagement and interact ion w ith regulators. Internal controls for key risks • Discussed reports from the Group Head, Internal Audit which provided summaries of GIA’s appraisal of controls across key risks, subject to the Committee’s oversight, together with the key risk issues ident iﬁed by GIA’s work and management act ions put in place to address the ﬁndings. • Reviewed the annual Risk and Control Self-Assessment, noting the embedded process and forward focus of sustainab il ity. Areas of elevated residual risk were discussed in the context of the overall risk proﬁle. Further details on internal controls are set out on pages 187 to 188 132 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Other areas of focus Remuneration as a risk management tool • Considered advice provided by the GCRO to the Remuneration Committee concerning the risk factors to be taken into account by the Remuneration Committee in determin ing the outturns for incent ives for the Group Ch ief Executive and other colleagues. Such advice assists the Remuneration Committee in its assessment as to whether the Group’s remuneration policy, practices and procedures are consistent with and promote sound and effective risk management, and do not encourage risk-taking that exceeds the level of tolerated risk of the Group. Further details concerning the Group’s approach to using remuneration as a risk management tool is set out in the Directors’ remuneration report on pages 143 to 174 Examples of deeper discuss ions into specif ic top ics • CIB and WRB Risk reviews: Received and discussed papers covering the WRB and CIB portfolios and, in particular, areas of focus such as change management, unsecured dig ital lending partnerships and Private Equity ﬁnanc ing act iv it ies. Financ ial Cr ime and ICS risks in the context of these businesses and markets were focused on to fully understand how these risks, which are becoming more prevalent and sophist icated, are be ing managed and mit igated. • Credit and Portfolio Management (CPM): Considered the review of the CPM mandate, assets and liab il it ies opt im isat ion. • Embedding Change Management Lessons Learned across the CIB Change Portfolio: Discussed the programme of continuous improvement being undertaken and leveraging lessons learned from change in it iat ives. • Third Party Risk: Reviewed deeper analysis on third party arrangements, key milestones and overall risk assessment. • Environment, Social, Governance and Reputational (ESGR) Risk: Discussed a paper setting out the Group’s approach to managing ESGR Risk, includ ing key areas of focus. • Safety and Security Risk: Received and discussed an update on safety and security issues over the past 12 months. • Credit Risk review: Discussed reports includ ing progress made and key themes and ins ights from the 2024 reviews, and the review plan for 2025. • SC Ventures Risk and Governance: Received an update on the risk posture, governance structures and control environment of the SC Ventures business unit. • Dig ital Assets R isk: Received an update on the key risks associated with the Group’s current and planned dig ital assets act iv it ies. Interaction with regulators • Maria Ramos attended meetings with the PRA in 2024. Linkages with subsid iary risk committees • In 2024, Maria Ramos attended a risk committee meeting of SCBHK. The risk committee chairs of SCBHK and SCBSL attended one Board Risk Committee meeting. This practice will continue in 2025 to reinforce these important linkages. • Maria Ramos hosted an annual videoconference with the chairs of subsid iary board r isk committees and INEDs in July 2024. Please refer to page 122 on linkages between the Committee and chairs of subsid iary board r isk committees 133 Standard Chartered – Annual Report 2024 Directors’ report Committee effectiveness in 2024 The 2024 Board and Committees’ effectiveness review was conducted internally, facil itated by the Group Company Secretary, and in accordance with the UK Code. Progress against last year's Action Plan The Action Plan set out a number of actions aris ing from the internally facil itated effect iveness review conducted in 2023. The 2024 Action Plan was regularly reviewed during the year and good progress has been made against the actions. Key observations from the 2024 internal effectiveness review This year’s review came in an exceptionally busy year for the Committee, which considered a number of wide-ranging risks. The Chair was commended for her stewardship of the Committee, working closely with management to select appropriate topics for discuss ion. The feedback on the Committee’s function ing highl ighted the follow ing: • There has been a sign iﬁcant improvement in the quality of papers, which has facil itated much better discuss ions in meetings. The length and timely circulat ion of papers w ill remain a focus. • The GCRO and the Risk Function were highly rated, with good engagement and an open relationsh ip w ith the Chair and other Committee members. • The Committee’s oversight of the risks facing the business was highly rated and both the Committee and management were viewed to be good at horizon scanning for emerging risks. 2025 Action Plan The 2025 Action Plan for the Committee reﬂects suggestions from the review and continues to build on the platform from last year: • Consider increas ing the meet ing time for the Committee, and refocus agendas away from risks which are now in appetite to emerging ones. • Continue to monitor the length, focus and timel iness of papers, part icularly focusing on executive summaries and consistently setting out the interconnect iv ity of risks, where relevant. • Continue to review and min im ise the duplicat ion of top ics being reviewed from multiple perspectives by Board Committees and the Board. • Schedule train ing on ICS, FCR, MRM, the Board Risk Appetite on Data Risk, Climate and Treasury matters. Risk informat ion prov ided to the Committee The Committee is authorised to seek any informat ion that will allow the Committee to fulﬁl its governance mandate relating to risks to which the Group is exposed, and alert senior management when risk reports do not meet its requirements. The Committee receives regular reports on risk management and tracks a wide range of risk metrics through a Board Risk Information report. This report provides an overview of the Group’s risk proﬁle against the Group’s Risk Appetite Statement. The GCRO’s report covers the macroeconomic environment, geopolit ical outlook, mater ial events and disclosures, and ongoing risks. Coverage of PRTs and regulatory matters are also included in this report. Interaction with management Senior management has attended Committee meetings for deeper discuss ion of agenda items. The Committee Chair also meets ind iv idually with senior leaders of the Risk function. Interaction with the Group Chief Risk Ofﬁcer The Committee Chair meets regularly with the GCRO and senior leaders in the Risk function. Senior managers are held accountable for risk issues and report to the Committee, where matters are reported by the GCRO. Committee links with other Board committees The Committee interacts closely with other Board Committees where the remit of these other Committees clearly covers risk-related matters. For example, the Audit Committee reviews the Group’s internal ﬁnanc ial controls and has overs ight of regulatory compliance and Data Risk. The Remuneration Committee receives advice from the Committee regarding risk and control matters to be taken into account for remuneration decis ions. The CSC has overs ight of culture and sustainab il ity- related matters. The interact ion ass ists the Committee in ensuring that it is well informed on discuss ions held, and the close collaboration of the Committee Chairs helps to ensure that there are no gaps and any potential for unnecessary duplicat ion is avoided. Resources The Committee has sought and received assurance that the Risk function is adequately resourced to perform its remit effectively. Disclosures The Committee has reviewed the risk disclosures in the Annual Report and the Half-Year Report and has also reviewed the disclosures regarding the work of the Committee. 134 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Culture and Sustainab il ity Committee I am pleased to present the report of the Culture and Sustainab il ity Committee for 2024 and share with you the highl ights of our work: • Oversaw good progress against the Group’s net zero roadmap. The Committee endorsed the baseline and target for the agriculture sector which has been published in the Sustainab il ity Review on page 82. This completes the Group’s target setting of the 12 highest carbon-emitt ing sectors. Agriculture is a notoriously diff icult sector in which to set a target and we are conscious of the dichotomy between driv ing goals towards net zero wh ile also ensuring our communit ies beneﬁt from a just trans it ion. In the context of agriculture, we aim to strike a balance between reducing carbon emiss ions wh ile also protecting food security and the liv ing standards of farmers. • Reviewed the proposal for a refreshed Culture Dashboard which will be operational ised in 2025, taking into account the Committee’s feedback. The purpose of the dashboard is to provide a comprehensive overview of cultural change by reporting on several key metrics that allow us to monitor the progress of our culture journey and aid local decis ion-mak ing to drive further progress. • Received a train ing sess ion on Nature, an important area of focus for the Committee. I’m delighted to see the progress we are making in this area, particularly through our early adoption of the Taskforce on Nature-related Financ ial Disclosures, which reﬂects our commitment to advancing our work with Nature. I am extremely proud of the awards that the CSO Organisat ion have been awarded this year, includ ing Susta inab il ity Team of the Year from the Airl ines Econom ics Sustainab il ity Awards for our contribut ion to the Pegasus Pr inc iples for the Av iat ion sector and a series of 30+ awards from The Asset Triple A Sustainable Finance Awards. Dr Linda Yueh Chair Culture and Sustainab il ity Committee Committee composit ion and attendance Dr Linda Yueh CBE (Chair) Jackie Hunt 1 Diane Jurgens 2 Robin Lawther CBE David Tang 4/4 3/3 3/3 4/4 4/4 1 Jackie Hunt stepped down from the Committee on 8 December 2024 2 Diane Jurgens jo ined the Comm ittee on 1 March 2024 Addit ional attendees The Group Chairman; Group Chief Executive; Chief Strategy and Talent Ofﬁcer; Chief Sustainab il ity Ofﬁcer and Group Company Secretary also attended Committee meetings in 2024. Purpose and responsib il it ies The Committee is responsible for overseeing the Group’s culture and sustainab il ity prior it ies. The Committee Chair reports to the Board on the Committee’s key areas of focus following each meeting. The Committee has written Terms of Reference that can be viewed at sc.com/termsofreference “The Committee has been busy overseeing the Group’s net zero journey against an ever-changing external environment, review ing progress aga inst the Group’s Stands and monitor ing the Group’s culture asp irat ion.” 135 Standard Chartered – Annual Report 2024 Directors’ report Activ it ies during the year Key matters Sustainab il ity and ESG • Oversaw progress on the Group’s net zero roadmap, includ ing the comm itment for our Scope 1 and 2 emiss ions to be net zero by 2025, and progress towards meet ing the Group’s ﬁnanced emiss ions inter im targets for h igh-emitt ing sectors by 2030. • Reviewed and discussed the Group’s Sustainab il ity Strategy and recommended the 2025 sustainab il ity strategic prior it ies to the Board. • Reviewed and endorsed the Group’s Transit ion Plan, challeng ing the CSO Organisat ion to deta il how they have translated our net zero commitments into an actionable plan and satisf ied itself that there is sufﬁc ient resource across the Group to implement the commitments being made. • Discussed and endorsed the approach to baseline and target the agriculture sector on Implied Temperature Rating, which had been chosen as it considered the social element of ESG by avoid ing carbon targets on specif ic crops and smaller farms, wh ich could endanger food security. • Discussed and endorsed the oil and gas facil itated em iss ions target. • Considered a progress update on the Group’s Sustainab il ity Aspirat ions and endorsed four new key performance ind icators (KPIs) follow ing the achievement of six KPIs in 2024. • Reviewed, challenged and endorsed the proposed changes to the Human Rights Posit ion Statement, expressing concern for the increas ing issues faced globally in tackling infr ingements of human rights. • Monitored the Group’s performance against assessments produced by our prior it ised external ratings agencies. • Received train ing on Nature, wh ich was opened up to all Board members. Our Stands (Accelerating Zero, Lift ing Part ic ipat ion and Resetting Globalisat ion) • Reviewed and discussed the year-end assessment on the achievement of the Stands, and endorsed the proposed sustainab il ity and Stands measures for inclus ion in the Group’s remuneration, ahead of approval by the Remuneration Committee. • Discussed the Lift ing Part ic ipat ion Stand, which had been refocused to reﬂect the reviews of operations in markets with in the WRB bus iness. On the community impact component of this Stand, the Committee discussed Futuremakers and how to maxim ise the impact of the programme. • Discussed the complexit ies of sett ing metrics for the Resetting Globalisat ion Stand and offered suggestions which were considered by management. The updates were subsequently endorsed by the Committee. • Continued to monitor the Accelerating Zero Stand through the work outlined in the Sustainab il ity section above. Culture, Divers ity and Inclusion (D&I) and Board workforce engagement • Received an update on the ongoing work to deliver on the Group’s culture aspirat ion of a ‘One Bank culture of ambit ion, act ion and accountabil ity that puts our cl ients at the heart of all we do’. Our valued behaviours continue to be the practical way we will manifest our aspirat ional culture. The Committee commended the work ongoing to strive for further build ing leadersh ip capabil ity and encouraged the team to accelerate the leadership train ing programme. • Discussed and gave guidance on the Culture Dashboard, which had been reviewed to ensure that it met the needs of the Group’s culture agenda and will be relaunched in 2025. • Monitored progress against the divers ity and inclus ion strategy dur ing a period of organisat ional change and discussed the high-impact actions to achieve targeted outcomes. These include: developing a diverse talent pipel ine to improve leadership representation, sponsorship skills build ing for our leaders to foster pos it ive career progress ion and refreshing the Employee Resource Group approach to enhance colleague experience. • Received a report from GIA on its activ it ies and opin ions w ith respect to culture and sustainab il ity, and commended GIA for introduc ing cultural trends into audits as it represents an innovat ive method of assessing the Group’s culture. • Received the annual employee engagement survey (My Voice) and probed the results to understand what was driv ing the scores and challenged the team on areas for improvement. • Received an update on the Board Workforce Engagement programme, which included the key themes from the three formal events which took place in China, India and Kenya as part of the market vis its, and a summary of reﬂect ions from directors and the colleagues who partic ipated. 136 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Committee effectiveness in 2024 The 2024 Board and Committees’ effectiveness review was conducted internally, facil itated by the Group Company Secretary, and in accordance with the UK Code. Progress against last year's Action Plan The Action Plan set out a number of actions aris ing from the internally facil itated effect iveness review conducted in 2023. The 2024 Action Plan was regularly reviewed during the year and good progress has been made against the actions. Key observations from the 2024 internal effectiveness review This was a year of change for the Committee, as it transit ioned its focus towards driv ing the Group’s sustainab il ity ambit ions. The feedback on the Committee’s function ing and effectiveness highl ighted the follow ing: • Good progress was being made on the reposit ion ing of the Committee and improvements had been made in the ﬂuency of meetings. • Contribut ions from the Susta inab il ity team were rated highly, with good progress made across the Group’s net zero ambit ions. • The quality of papers had improved during the course of the year and were now rated to be of a good standard, but would beneﬁt from being more concise. 2025 Action Plan The 2025 Action Plan for the Committee reﬂects suggestions from the review and continues to build on the solid progress made last year: • The Committee will continue to reﬁne its object ives in order to complete its reposit ion ing during 2025. • Continue to focus on ensuring papers are concise, focus on key points and that the level of detail in presentations is calibrated. 137 Standard Chartered – Annual Report 2024 Directors’ report Governance and Nominat ion Comm ittee I am pleased to present the report of the Governance and Nominat ion Comm ittee for 2024 and share with you the highl ights of our work: • Overseeing comprehensive search processes that led to the appointments of Diane Jurgens and Lincoln Leong to our Board. • Meeting our Board gender and ethnic ity d ivers ity targets. • Continu ing to focus on our sk ills matrix in our succession planning, ensuring our Board and Management Team mainta ins its rich divers ity of sk ills, experience and backgrounds. • Undertaking a detailed review of governance across our subsid iar ies, following structural changes in the Group aimed at moving the focus of management towards business sectors and away from the regional clusters. Dr José Viñals Chair Governance and Nominat ion Comm ittee Committee composit ion and attendance José Viñals (chair) Shir ish Apte Linda Yueh Maria Ramos Phil Rivett 4/4 4/4 4/4 4/4 4/4 The Group Chief Executive, Chief Strategy and Talent Ofﬁcer and Group Company Secretary also attended Committee meetings in 2024. Purpose and responsib il it ies The Committee has responsib il ity for advis ing the Board and committees on their composit ion, appo intments and succession. The Committee also monitors and advises on the impact of changes to corporate governance affecting the whole Group. The Committee Chair reports to the Board on the Committee’s key areas of focus following each meeting. The Committee has written Terms of Reference that can be viewed at sc.com/termsofreference “In another busy year for the Committee, we have scoured the market to secure the best non-executive talent to help your Board meet the business and governance challenges the Group will face in a constantly changing world.” 138 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance We are pleased to report that as at 31 December 2024 our Board met the divers ity targets set out in UK List ing Rules. Board divers ity data is collected by way of self-ident iﬁcation. D irectors and members of the Management Team were presented with the prescribed disclosure categories and asked to respond based on their self-ident iﬁcation. Board composit ion as at 31 December 2024 Experience Experience International experience Representation from our markets INED tenure (includ ing Cha ir) 0-1 year 1-3 years 3-6 years 6-9 years Board gender divers ity Female 5 Male 7 42 % (2023:38%) Number of senior of posit ions (CEO, CFO, SID and Chair) Female 1 Male 3 25 % (2023: 25%) Board ethnic divers ity White 8 Ethnic minor ity background 4 Number of Board members Percentage of the Board (%) Number of senior posit ions on the Board (CEO, CFO, SID and Chair) Number in executive management * Percentage of executive management * (%) Men 7 58 3 7 54 Women 5 42 1 6 46 Number of Board members Percentage of the Board (%) Number of senior posit ions on the Board (CEO, CFO, SID and Chair) Number in executive management * Percentage of executive management * (%) White Brit ish or other Wh ite (includ ing m inor ity-Wh ite groups) 8 67 4 5 38 Mixed/multiple ethnic groups 0 0 0 0 0 Asian/ Asian Brit ish 4 33 0 6 46 Black/African/Caribbean/Black Brit ish 0 0 0 1 8 Other ethnic group 0 0 0 0 0 Not specif ied/prefer not to say 0 0 0 1 8 * Includes our Management Team as at 31 December 2024, plus the Group Company Secretary, but excludes inter im members. Information is as at 31 December 2024. Gender and ethnic divers ity 33 % (2023: 31%) 100 % 83 % 20% 40% 30% 10% 139 Standard Chartered – Annual Report 2024 Directors’ report Activ it ies during the year Key matters Board and senior talent succession planning • Considered a range of potential future INED candidates, in order to mainta in the necessary range of skills, experience, knowledge and perspectives on the Board, taking into account the length of tenure of the INEDs, and the importance of regularly refreshing the Board membership. Russell Reynolds¹ were engaged throughout the year to assist with the search. • In view of the departure of Carlson Tong, engaged Russell Reynolds to perform a search of candidates with experience and connections in the Hong Kong market culminat ing in the appointment of Lincoln Leong as an INED. • Discussed management’s executive talent approach and approved the Group Management Team and Group Chief Executive Ofﬁcer succession plans for the Group. 1 Russell Reynolds also provides senior resourcing to the Group. The Company is not aware of any ongoing business relationsh ip between Russell Reynolds and the Company’s directors Other areas of focus Succession planning • Reviewed succession plans for the committee chair roles and ident iﬁed appropr iate ind iv iduals with the necessary skills and attributes to provide emergency cover as required. Board and Committees effectiveness review • Oversaw the Board and committees’ effectiveness review (see page 119), and monitored progress against the 2024 Action Plan, which addressed the key observations from the 2023 effectiveness review. • Discussed observations and recommendations aris ing from th is review and recommended to the Board the 2025 Action Plan. Independent cyber security adviser • Recommended the extension of Sir Iain Lobban’s appointment as the independent cyber security adviser to the Board and concluded that his advice remained invaluable, with his role expanding to encompass advice on our exploitat ion of data from 2025. External interests and directors’ independence • Conducted a review of the directors’ exist ing and prev iously authorised potential and actual situat ional conﬂ icts of interest and concluded that there were no circumstances which would necessitate any of these authorisat ions be ing revoked or amended. • Noted directors’ other directorsh ips and bus iness interests taken on during the year in the context of time commitment, over-boarding and the regulatory and shareholder lim its on d irectorsh ips as well as other regulatory requirements in this area. • Reviewed the independence of each of the non-executive directors, taking into account any circumstances with a reasonable prospect of impa ir ing their independence, and found that each of the INEDs continued to be independent. Subsid iary governance • Received updates from the Group Heads of CIB and WRB, and from the Group’s International President, who have management responsib il ity for the Group’s subsid iar ies, on the Group’s approach to subsid iary governance. Th is included a look at our compliance with exist ing corporate governance rules across the Group and horizon scanning for changes across our markets. Terms of Reference • Conducted a review of the Committee's Terms of Reference, taking into account applicable rules and best practice in the UK and Hong Kong. Minor amendments were made, princ ipally to al ign with the 2024 UK Corporate Governance Code. Committee composit ion • Reviewed our skills matrix and made changes to committee composit ion. Succession planning and Board appointments The Committee considers the likely technical skills required for the Board in the context of the development and execution of the Group’s strategy. This drives the Committee’s succession planning approach. The Committee also keeps under review the Group’s succession plans in relation to executive directors and senior management, whereby internal successors are assessed and developed alongside ident ify ing external candidates where required. The directors have power under the Company’s articles of associat ion to appo int new directors. Newly appointed directors retire at the AGM following appointment and are elig ible for elect ion. As required by the UK Code, all directors are subject to annual re-election by shareholders subject to continued satisfactory performance based upon their annual assessment. Non-executive directors are appointed for an in it ial period of one year and subject to (re)election by shareholders at AGMs, in line with the UK Code. 140 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Implementation of our Board Divers ity Pol icy The Committee conducted its annual review of our Board Divers ity Pol icy (the Policy) in 2024. No changes were made to the Policy. Although the Policy does not contain specif icat ions or targets for committee membership, the Policy provides for a diverse Board with a wide range of skills and perspectives which its members bring to our Board committees. Progress against Board Divers ity Pol icy object ives We set out below our progress against our Board Divers ity Pol icy as at 31 December 2024. Information on the Group’s wider divers ity and inclus ion strategy, includ ing gender balance across the Group and targets for ethn ic representation, can be found on pages 40 to 41. A copy of the full Board Divers ity Pol icy can be viewed at sc.com/boarddivers itypol icy and further details on the Group’s approach to divers ity and inclus ion can be v iewed at sc.com/divers ity-and- inclus ion. Increasing the representation of women on the Board with an aim to have a min imum of 40 per cent female representat ion Following changes during the year, female representation on the board increased to 42 per cent at year end. Adopting an ethnic ity asp irat ion of a m in imum of 30 per cent from an ethnic minor ity background Representation from ethnic minor ity backgrounds has increased to 33 per cent at the end of 2024. Ensuring that our Board reﬂects the diverse markets in which we operate The Board has members either based in or who are nationals of many of the regions in which we operate, includ ing the UK, EU, North Amer ica, Asia and Africa. Many of the INEDs have addit ional exper ience of having worked and lived in many of the Group’s other markets. We continue to prior it ise board representation from our key markets. Ensuring that the Board is comprised of a good balance of skills, experience, knowledge, perspective and varied backgrounds The Committee has continued to focus on ensuring that the Board has the right combinat ion of exper ience, skills and attributes required both immed iately and in the medium to longer term. The appointment of Diane Jurgens brings experience in using technology to transform business in some of our key markets, and Lincoln Leong brings deep experience of the Hong Kong market. Ensuring that we consider the Group’s aspirat ions in relation to disab il ity, sexual orientat ion, gender ident ity and gender expression We remain committed to all aspects of divers ity in our succession process. Only engaging search ﬁrms who are signed up to the Voluntary Code of Conduct for Executive Search Firms In 2024 we worked with Russell Reynolds, who has signed up to the Voluntary Code and is committed to supporting our ambit ions to ensure d ivers ity on our Board. Reporting annually on the divers ity of the execut ive pipel ine as well as the d ivers ity of the Board, includ ing progress being made on reaching the Board’s gender and ethnic ity asp irat ions We continue to improve our reporting of Board and senior talent succession planning as well as reporting on the importance of a diverse Board. 141 Standard Chartered – Annual Report 2024 Directors’ report Committee effectiveness in 2024 The 2024 Board and Committees’ effectiveness review was conducted internally, facil itated by the Group Company Secretary, and in accordance with the UK Code. Progress against last year's Action Plan The Action Plan set out a number of actions aris ing from the internally facil itated effect iveness review conducted in 2023. The 2024 Action Plan was regularly reviewed during the year and good progress has been made against the actions. Key observations from the 2024 internal effectiveness review Feedback on the Committee’s function ing and effectiveness was posit ive and spec if ically highl ighted the follow ing: • The Committee had a good focus on divers ity. The Board had met its aspirat ion for gender and ethnic divers ity but would need to work hard to mainta in the improvement. • The Committee had devoted a sign iﬁcant amount of time to Board succession planning, with considerable success in terms of the calibre of candidates and appointees it was able to attract. • In a year with a number of corporate governance rule changes proposed and introduced by regulators in relation to the Group’s list ings in London and Hong Kong, the Committee was pleased with its oversight and plans for implementat ion of the changes, with responsib il it ies shared with the Board and other Committees. 2025 Action Plan The 2025 Action Plan for the Committee reﬂects suggestions from the review and continues to build on the progress made last year: • Increase the focus of the Committee and the Board on succession plans for the Management Team with particular emphasis on increas ing the number of internal candidates who are ident iﬁed and prepared for posit ions. • Conduct a detailed review of the Board’s skills matrix to reﬂect changes in the geo- polit ical and bus iness environment across our footprint and review Board composit ion in that light. • Review and consider succession planning for other boards around the group. 142 Standard Chartered – Annual Report 2024 Directors’ report Corporate governance Appoint ing a new Group Cha ir of Standard Chartered PLC With José Viñals’ nine-year term as Group Chairman due to expire in October 2025, the Board commenced a global search for his successor in late 2023, which led to the appointment of Maria Ramos as Group Chair Designate to succeed José. * Spencer Stuart is a signatory of the Voluntary Code of Conduct for Executive Search Firms. They also provide leadership advisory and senior executive search and assessment services to the HR function with in the Standard Chartered Group. Early stages of the process • Members of the Board were inv ited to express an interest in putting themselves forward for the role, with Maria accepting that inv itat ion • Maria would typically have led the search in her capacity as the Company’s Senior Independent Director, however, given her interest in the role a Selection Panel was constituted to lead the process instead. The Selection Panel was comprised of non-executive directors and was chaired by Phil Rivett, a member of the Governance and Nominat ion Comm ittee • A draft role specif icat ion was agreed by the Selection Panel • Several leading internat ional search ﬁrms were inv ited to p itch for the mandate, following which Spencer Stuart was appointed to support the process • The Selection Panel, with input from the Executive Directors, agreed the ﬁnal role specif icat ion. They were careful to ensure this supported the Group’s strategic prior it ies and included the skills, experience and knowledge as well as the personal attributes required for the role. Announcement Progress against the outstanding approvals were sufﬁc iently advanced for the Board to be sufﬁciently conﬁdent to announce her condit ional appo intment on 4 February 2025. Final Stages • The feedback was then documented and discussed at a meeting of the Selection Panel and Executive Directors. A recommendation was then made to the Board • The Board, excluding Maria, then met and discussed Maria’s candidacy which was unanimously endorsed, subject to a number of regulatory and other external approvals. Their decis ion was based on the ir experience of working with her, Spencer Stuart’s report and the interv iews w ith her which demonstrated: – a deep knowledge and understanding of the Group and the banking industry, as a former bank chief executive – considerable internat ional non-execut ive and Chair experience as well as a ﬁrm understanding of the key governance issues – integr ity, profess ional reputation, competency, breadth of knowledge and qualif icat ion to take on the role – strong commercial, governmental, ﬁnanc ial and pol icy experience – broad internat ional exper ience, strong internat ional network and exper ience of operating across emerging markets. Long-list • A diverse global list of candidates was presented by Spencer Stuart and was discussed extensively. Spencer Stuart was then asked to gather addit ional informat ion on some of the cand idates to ensure suitab il ity • A reﬁned shortlist of potential external candidates was then agreed by the Selection Panel, and they were approached by Spencer Stuart. Short-list • The shortlisted candidates met with Spencer Stuart and Phil Rivett in it ially, to explain to them more about the role, our expectations and to gauge their appetite and suitab il ity • Members of the Selection Panel, together with the Executive Directors then interv iewed the rema in ing cand idates and measured them against the agreed role specif icat ion • Spencer Stuart produced reports on each of the ﬁnal candidates, contain ing deta iled assessments and referencing. Maria Ramos Throughout the selection process, as highl ighted above, Maria demonstrated her extensive experience as a leader in both the public and private sector and as a banker. She has strong internat ional exposure, and a particularly good understanding of emerging and developing markets. An economist by train ing, Mar ia played a pivotal role in South Africa’s post-apartheid economic and public ﬁnance reform as Director-General of the National Treasury from 1995-2003. She was appointed Chief Executive of Transnet Ltd, the state- owned freight transport and logist ics serv ice provider in 2004-2009 during which time Transnet underwent a sign iﬁcant ﬁnancial, cultural and operat ional turnaround. Maria went on to serve as Group CEO of Absa for ten years from 2009-2019, where she navigated the global ﬁnancial cr is is, expanded Absa into a pan-African ﬁnancial serv ices provider with a footprint across 12 African markets and managed its transit ion follow ing Barclays’ divestment of its controlling stake. Maria retired from her executive career in 2019 and has gone on to serve as an independent non-executive director of several boards, includ ing internat ionally l isted companies, and advisory groups (more details on those roles can be found on page 106). Most recently, Maria served as Chair of AngloGold Ashanti Lim ited (2020- 2024), a leading global min ing company, where she provided strategic leadership and oversight of a major and complex corporate restructuring of the company. 143 Standard Chartered – Annual Report 2024 Directors’ report Key sections Page 150 Remuneration at a glance Page 152 Remuneration alignment Page 154 Committee at a glance Page 156 Directors’ remuneration in 2024 Page 164 Directors’ remuneration policy Page 170 2025 policy implementat ion for d irectors Page 174 Addit ional remunerat ion disclosures I am pleased to present the directors’ remuneration report for the year ended 31 December 2024. This report provides an overview of the Remuneration Committee’s work and decis ion–mak ing in determin ing the remunerat ion for executive directors and the wider workforce. The current directors’ remuneration policy operated throughout 2024 as intended, incent iv is ing performance l inked to the Group’s strategy and align ing w ith shareholder interests. The report also sets out details of the new directors’ remuneration policy for the period 2025-2027, which will be put to a shareholder vote at the AGM in May 2025. The decis ions taken by the Comm ittee were based on careful considerat ion of a broad range of factors includ ing performance across the Group, the economic environment in our markets, and the need for fair and appropriate reward for our workforce. Directors’ remuneration report Proﬁt before tax $6,811 m 21% (underlying basis) Return on tangible equity 11.7% 160bps (underlying basis) Total shareholder return 47.5% 2023: 9.4% Common Equity Tier 1 ratio 14.2% 19bps Financ ial KPIs RoTE performance 0% 2% 4% 6% 8% 10% 12% 2024 2023 2022 2021 2020 The Group has built upon the sign iﬁcant progress made over the past two years to deliver very strong performance in 2024, includ ing a s ign iﬁcant (160bps) year–on–year increase in return on tangible equity (RoTE) to 11.7 per cent (on an underlying basis). Underlying proﬁt before tax is up 21 per cent at constant currency (ccy) on last year. These posit ive results reﬂect strong execut ion of our strategy, combin ing d ifferent iated cross–border capabil it ies with leading wealth management expertise, and a focus on sustainab il ity across our businesses. Group scorecard 50% 30% 50% 33% Financ ials Non-ﬁnancials No Committee discret ion was used to amend the formula ic scorecard outcome. 63% Group scorecard outcome The Group scorecard, was 63 per cent. Of this, 30 per cent (out of a possible 50 per cent) related to ﬁnanc ial performance includ ing: underly ing income up 13 per cent year-on-year; exceeding our sustainable ﬁnance revenue and sales targets; the increase in RoTE; and achievement of our costs targets. The remain ing 33 per cent (out of a possible 50 per cent) related to the achievement of non-ﬁnancial goals, includ ing strong cl ient satisfact ion performance and delivery against sustainab il ity and productiv ity targets. See pages 157 and 158 for more informat ion Our performance in 2024 “Rebalancing director remuneration to strengthen the alignment between pay and performance, and to incent iv ise outperformance” 144 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Group-wide remuneration 2024 discret ionary annual incent ives In determin ing an appropr iate incent ive pool, the Comm ittee considers the Group scorecard outcome alongside addit ional factors, such as the external env ironment, market competit iveness and overall affordab il ity. The Comm ittee also considers risk, control and conduct matters, includ ing ongoing invest igat ions and matters raised by regulators. Following its review of these factors, the Committee set an annual incent ive pool of $1,690 m ill ion, an increase of 7 per cent on 2023. Discret ionary incent ive pool Incentive pool ($m) % change (reported) % change (same store basis) 1,690 7 9 Group-wide in it iat ives Our Fair Pay Charter continues to guide the design and delivery of reward. In 2024, we saw the beneﬁts of in it iat ives launched in line with the Charter, with more than 2,000 parents using our refreshed global parental leave policy, the expansion of our menopause support, an enhanced global Employee Assistance Programme and the introduct ion of local beneﬁts such as emergency care and neurodivers ity support. We have further embedded continuous feedback, coaching and open two-way performance feedback and increased ind iv idual performance different iat ion in variable pay outcomes. During 2024, we also introduced Appreciate, our global recognit ion platform through wh ich colleagues can celebrate one another’s achievements and recognise their efforts to live our valued behaviours by awarding points, which are redeemable against gifts. Around 700,000 recognit ions have been made s ince launch. Our 2024 Divers ity, Equal ity and Inclusion Impact Report gives further detail on our Fair Pay Charter and also includes our divers ity pay gap d isclosures and analysis, with detail on the actions we are taking to increase gender and ethnic ity representat ion across the Group. Our Divers ity, Equal ity and Inclusion Impact Report can be found here: sc.com/fairpayreport 2025 salaries The average global salary increase for 2025 is 2.5 per cent. As in previous years, increases will be princ ipally focused towards junior employees and areas of strateg ic importance. For those ind iv iduals receiv ing an increase, the average is circa 7 per cent with higher than average increases in South Asia and Africa reﬂecting ongoing cost–of–liv ing challenges. Executive director remuneration in 2024 Annual incent ives for execut ive directors Annual incent ives for B ill and Diego are based predominantly on the Group scorecard with an addit ional element for personal performance. The Committee approved the following annual incent ive outcomes for 2024, taking account of ind iv idual performance assessments, for Bill and Diego. The Committee is satisf ied that these are appropriate given the very strong Group performance in 2024 and the sign iﬁcant personal contribut ions from B ill and Diego. 2024 annual incent ive (£) % of maximum Year-on-year change (%) Bill Winters 1,461,874 66 0 Diego De Giorg i 958,320 66 – See pages 157 to 160 for further details 2022 – 24 LTIP awards The 2022–24 LTIP awards are due to start vesting in March 2025 with a projected performance outcome of 88 per cent, based on RoTE of 11.7 per cent, relative total shareholder return (TSR) ranking above upper quartile, and above target performance against sustainab il ity and other strategic measures. As usual, the ﬁnal relative TSR outcome will be assessed three years from the date of award, in March 2025. The values delivered by this projected outcome are based on the three-month average share price to 31 December 2024 and are included in the single total ﬁgure of remuneration for Bill. Diego did not partic ipate in this award. Award share price (£) Valuation share price (£) 2022 - 24 LTIP projected outcome (£) Bill Winters 4.876 9.197 6,125,761 The Committee reviewed the assessments that resulted in the outcome for 2024, and are satisf ied that it reﬂects the posit ive performance over the three year per iod. In addit ion, the Committee considered the grant price against that of the previous year’s award, and against the average share price in the period leading up to the grant date. The price difference was not sign iﬁcant and, therefore, the Comm ittee concluded there was no windfall gain. See pages 161 and 162 for further details • Group performance has been very strong across both ﬁnancial and non-ﬁnancial metr ics and the Committee has taken decis ions on remunerat ion that reﬂect this performance and the delivery against our targets. • Discret ionary incent ives are $1,690 m ill ion for 2024, up 7 per cent on 2023, reﬂect ing Group performance and affordabil ity, with average global salary increases of 2.5 per cent for 2025. • Annual incent ives for execut ive directors, Bill Winters, Group Chief Executive (CEO) and Diego De Giorg i, Group Ch ief Financ ial Ofﬁcer (GCFO), assessed at 66% of the max imum, are £1,461,874 and £958,320 respectively. • Projected performance outcome of 88 per cent for the 2022-24 long-term incent ive plan (LTIP) awards. • The 2024 single total ﬁgure of remuneration is £10,655,707 for the CEO and £2,769,259 for the GCFO. • Reward for all Group employees, includ ing the execut ive directors, continues to be aligned to the Group’s strategic prior it ies, through the annual and long-term incent ive scorecards. Summary of 2024 remuneration decis ions 145 Standard Chartered – Annual Report 2024 Directors’ report Single total ﬁgure of remuneration for 2024 The 2024 annual incent ive and projected 2022-24 LTIP performance outcome results in a 2024 single ﬁgure for Bill of £10,655,707 and for Diego of £2,769,259. For Bill, the 2024 single ﬁgure represents a year-on-year increase of 46 per cent. Fixed pay for Bill was unchanged from 2023 and the annual incent ive of £1,461,874 was ﬂat on 2023. The increase in the single ﬁgure was driven princ ipally by the 2022-24 LTIP outcome, reﬂecting the Group’s consistent, strong performance over the last three years and the sign iﬁcant increase in our share price over recent months. See page 156 for further details Bill’s 2022-24 LTIP award will vest, pro rata, over the next ﬁve yeas, with a further one-year retention period following each vest, further reinforc ing al ignment of remuneration outcomes with shareholder interests and the Group’s long-term performance. 2024 single total ﬁgure of remuneration (£000) 10,656 2,769 7,309 6,408 2024 Bill Winters 2023 2022 0 2,000 4,000 6,000 8,000 12,000 10,000 0 2,000 4,000 6,000 8,000 12,000 10,000 2024 Diego De Giorg i Salary, pension, beneﬁts Annual incent ive LTIP The Committee is seeking shareholder approval for a new three-year directors’ remuneration policy. Our policy over the past decade has had to comply with the regulatory variable pay cap for banks that was introduced by the European Union and retained in UK legislat ion post Brex it. The variable pay cap, which was in place from 2014 to 2023, lim ited var iable remuneration to 200 per cent of ﬁxed pay for employees – includ ing execut ive directors – ident iﬁed as material risk takers. The Committee welcomes the removal of the variable pay cap, which had the unintended consequence of increas ing ﬁxed pay and reducing performance-linked variable pay. The removal of the cap gives us the opportunity to develop a new approach for executive directors, and the applicable wider workforce, with a greater proportion of total remuneration awarded in performance-based incent ives that aligns with shareholder interests, and are competit ive with polic ies of our global bank ing peer group. In arriv ing at our proposed d irectors’ remuneration policy, we consulted with approximately 60 per cent of our share register, proxy advisers such as Institut ional Shareholder Services, The Investment Associat ion and Glass Lew is, and with other important stakeholders, includ ing the PRA and FCA. We began our consultation earlier than usual in 2024 to give us the opportunity to test our in it ial think ing w ith key shareholders and the proxy advisers and have held 40 separate consultation meetings since then. We received valuable input includ ing support for the pr inc iple of rebalancing total remuneration towards performance-linked variable remuneration, and a preference for scorecards that are simple, transparent and weighted towards ﬁnanc ial metrics. This feedback helped to shape the proposed policy, which we reviewed again with key shareholders and proxy advisers in late 2024 and early 2025. In addit ion, our shareholders and the proxy adv isers emphasised the importance of explain ing our th ink ing behind the decis ions we have made, and we have endeavoured to do that as clearly as possible in this report. • The new policy represents the most sign iﬁcant change for many years and, as such, we engaged extens ively and transparently with our major shareholders throughout the review. Their feedback and support has been crucial in inform ing our new pol icy. • The removal of the regulatory cap on variable pay for banks gives us the opportunity to rebalance total remuneration from ﬁxed pay towards performance–linked variable remuneration, incent iv is ing outperformance and re inforc ing the alignment between executive director reward and shareholder experience. • Executive director salaries are being sign iﬁcantly reduced, by 40 per cent for the CEO and 33 per cent for the GCFO. • The maximum total remuneration opportunity, if 100 per cent performance outcome is achieved for both the annual incent ive and LTIP, is £13.1 mill ion for the CEO and £7.7 m ill ion for the GCFO. • A larger proportion of total remuneration (circa 85 per cent at the maximum) is delivered in performance-linked incent ives, w ith a greater weight ing to the share pr ice-linked LTIP. • Annual incent ive and LTIP performance scorecards have been s impl iﬁed w ith increased emphasis on ﬁnanc ial measures. • Shareholding requirements will be increased to 500 per cent of salary for the CEO and 400 per cent of salary for the GCFO. 2025 Directors’ remuneration policy 146 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Reducing ﬁxed pay sign iﬁcantly and increas ing performance-linked variable pay opportunity In review ing our approach for rebalanc ing total remuneration, and setting an appropriate new maximum opportunity, we considered what Bill’s maximum pay opportunity would be if we removed the share element of his salary (which was introduced as a response to the cap) and replaced it with variable pay. We did this calculation in the same way as we converted variable pay to ﬁxed pay when the cap was introduced in 2014. 2014 context In 2014, to comply with the cap while also recognis ing the guaranteed nature of ﬁxed pay versus performance linked and ‘at risk’ variable remuneration, we reduced the variable pay opportunity for executives by £3 for every £1 increase in ﬁxed pay. For Bill, removing the share element of his current ﬁxed pay and applying the same swap ratio for variable to ﬁxed pay would result in a total remuneration at maximum opportunity of GBP11.1 mill ion. In addit ion, the Comm ittee carefully considered the evolution of executive directors’ pay opportunity since the introduct ion of the cap in 2014. Over the 10-year period since Bill’s appointment in 2015, his total ﬁxed pay and, therefore, his maximum and target (50 per cent performance outcome) total remuneration opportunit ies have increased by less than 0.5 per cent. This has resulted in: • An erosion in the competit iveness of CEO remunerat ion versus companies which were not subject to the cap. The average increase in maximum earning opportunity for FTSE 100 CEOs over the past 10 years is in the region of 20 per cent, and at target opportunity the average increase is above 30 per cent. • Increased internal pay compression, where the pay of senior employees below executive level, for whom we have had more ﬂexib il ity to increase ﬁxed pay and, therefore, maximum opportunity, is reaching levels sim ilar to or above the pay of the executive directors. To address these issues, the Committee is proposing a maximum opportunity of GBP13.1 mill ion for B ill and GBP7.7 mill ion for D iego, with the incent ive element increased to provide an appropriate mix between ﬁxed (13 per cent for Bill and 16 per cent for Diego at maximum opportunity) and performance-linked, variable remuneration (87 per cent for Bill and 84 per cent for Diego). The maximum opportunit ies for B ill and Diego will only be realised if performance outcomes of 100 per cent are achieved for both the annual incent ive and LTIP scorecards. The Committee has consistently set stretching targets, and has been very dil igent in assessing performance as evidenced by histor ical scorecard outcomes. Equally, we have set stretching targets in the 2025 scorecards includ ing sett ing the level for the maximum RoTE outcome in the LTIP scorecard at 14.5 per cent. On this basis, we believe that the policy will incent iv ise the delivery of sign iﬁcant returns for shareholders, and reward our executive directors appropriately if this is achieved, thereby link ing incent ive remunerat ion with improved shareholder outcomes. See pages 171 (annual incent ive) and 172 (LTIP) for full scorecard deta ils. Addit ionally, the var iable remuneration is weighted towards long-term incent ives wh ich are awarded in shares, start vesting after a three-year performance period, and remain subject to malus and clawback in line with remuneration regulations, currently up to ten years from the grant date. 2 4 6 8 10 12 14 New policy Current policy New policy Current policy CEO GCFO 33% 27% 40% £8.3m 56% 31% 13% 40% 27% 33% £5.4m 53% 31% 16% £7.7m Current and new directors’ maximum remuneration opportunity, showing reduced ﬁxed pay and increased incent ive opportun ity (£m) Max annual incent ive Fixed pay Max LTIP £13.1m Peer group benchmarking As part of the policy review, the Committee also considered the total remuneration proposed against a peer group of global and regional banks and the FTSE 30. The peer banks selected are from the UK, Asia, Europe and the USA with business activ it ies and a geographical footprint sim ilar to Standard Chartered, and w ith whom we may compete for executive talent. The peer group was established by scoring candidate peers against four criter ia: geography, business, market cap and headcount. The group includes two US banks – JPMorgan Chase and Cit i – wh ich we believe is appropriate based on our criter ia. In particular, the US is a sign iﬁcant locat ion for the recruitment of senior executives. Both of our current executive directors have worked at US banks earlier in their careers and we have recruited several US non-executive directors. However, recognis ing the debate regard ing the different ial in US versus UK pay levels, for these banks we used a direct report of the Group CEO for the remuneration benchmark, in recognit ion that this would be a more appropriate match in terms of potential recruitment. While there is no perfect peer across the criter ia tested, the robust scoring methodology that we applied gives us conﬁdence that we have selected an appropriate group of peers. The banks included in our remuneration peer group are detailed below: Remuneration peer group • Barclays • Cit i (Head of Markets) • DBS • Deutsche Bank • HSBC • JPMorgan Chase (Co-CEO Commercial and Investment Bank) • Lloyds Banking Group • OCBC • Société Générale • UBS • United Overseas Bank 147 Standard Chartered – Annual Report 2024 Directors’ report For Bill and Diego, current and new maximum remuneration opportunit ies aga inst our peer group are shown below: Executive director maximum opportunity – current policy Executive director maximum opportunity – new policy Bottom quartile 2nd quartile 3rd quartile Top quartile CEO GCFO £7.3m £6.1m £8.3m £5.4m £13.1m £7.7m £10.0m £8.1m £13.4m £11.4m Peer group data is based on 2023 outcomes and availab il ity of data For Bill, total remuneration opportunity under the new policy is posit ioned towards the upper quart ile of our remuneration peer group for target and maximum performance outcomes (based on currently available compensation informat ion for our peers) and posit ioned towards the upper quart ile against FTSE 30 companies. For Diego, total remuneration under the new policy is posit ioned around the med ian of our remuneration peer group and around the upper quartile against FTSE 30 companies. The Committee recognises that, while the proposed maximum opportunit ies for execut ive directors are with in the peer group range, the proposal for Bill is in the top half of the range. We believe that this is appropriate for the Bank at this time to incent iv ise the delivery of sustainably higher returns and, supported by the stretching performance targets we have set, deliver appropriate and competit ive performance– linked reward. Simpl ify ing our scorecards and focusing on ﬁnanc ial measures We appreciate that the sign iﬁcantly h igher variable incent ive opportunity for executive directors needs to be accompanied by an increased focus on ﬁnanc ial performance measures – ensuring a strong link between executive director pay and shareholder returns. We have also taken note of shareholder feedback for making scorecard metrics simple, transparent and measurable. To that end, ﬁnancial metr ics now constitute 60 per cent of the annual scorecard metrics (versus 50 per cent previously), and 80 per cent of the LTIP scorecard (versus 60 per cent previously). The LTIP scorecard metrics comprise 40 per cent each for RoTE and relative TSR, and 20 per cent for sustainab il ity measures. Flexib il ity to disapply time proration on vesting LTIP awards The Committee recognises that the standard practice in the UK is to prorate in-ﬂight LTIP awards for time served during the performance period when an executive director retires. However, the Committee has decided to retain the provis ion that allows it to consider the disappl icat ion of time proration for in-ﬂight LTIP awards, only for Bill, on his retirement. The Committee believes it is appropriate to retain this ﬂexib il ity for Bill as, during his tenure as CEO, he has overseen a very substantial transformation of the Bank. This major overhaul has created the environment for the Bank, and its shareholders, to beneﬁt from current and future strategies. We acknowledge the feedback received from our shareholders and the proxy advisers that the use of this ﬂexib il ity is not standard practice. The Committee’s default posit ion is that LTIP pro-ration for time served will apply unless there is strong evidence of tangible and sustained improvement in the performance of Standard Chartered prior to Bill’s retirement. In addit ion: • Bill will need to be designated as an ‘Elig ible Leaver’ under our share plan rules, which includes requirements such as not taking on another executive role for a competitor, for the provis ion to be cons idered. • Any LTIP awards that are retained on retirement will continue to be deferred in accordance with applicable deferral rules and will remain subject to malus and clawback provis ions. A majority of our shareholders, w ith whom we discussed this provis ion, were comfortable that the Comm ittee retain this ﬂexib il ity for Bill in the context of the sign iﬁcant transformat ion he has overseen, and ind icated that they would judge the decis ion of the Comm ittee if the provis ion was used. Should the Committee decide to use this discret ion, the c ircumstances and deliberat ions around its decis ion w ill be fully disclosed in the applicable directors’ remuneration report. Increased shareholding requirements The shareholding requirements in place for executive directors are based on a percentage of salary and, therefore, with the reduction in salaries these requirements need to be revised. Consider ing our other proposals, and reﬂect ing the increase in variable pay opportunity, we are proposing new shareholding requirements of 500 per cent of the new salary for Bill and 400 per cent of the new salary for Diego. This represents an increase in GBP terms of 19 per cent for Bill and 33 per cent for Diego and posit ions the requ irements at the upper quartile of the FTSE 30. PRA and FCA consultation on remuneration regulations The Committee notes the current consultation on certain aspects of the remuneration regulations, includ ing reduc ing the length of deferral and the removal of post-vest retention periods currently applicable to share awards along with reintroduc ing the opt ion to pay div idend equ ivalents on deferred share awards. We have designed the policy to be ﬂexible enough to respond to any changes without sign iﬁcant restructur ing. 148 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Executive directors’ remuneration in 2025 Subject to the approval of the new directors’ remuneration policy, the table below summaries how the policy will be implemented in 2025. Full details of the new policy are set out on pages 164 to 169. Fixed remuneration Bill Diego Salary £1,500,000 £1,100,000 Beneﬁts A range of core beneﬁts, aligned with UK workforce Pension 10% of salary £150,000 £110,000 Variable remuneration Increased annual incent ive opportunity based on a simpl iﬁed scorecard Maximum: 270% of salary 220% of salary Financ ial measures – 60% Strategic measures – 30% Personal performance – 10% Increased long-term incent ive opportunity based on a simpl iﬁed scorecard Maximum: 490% of salary 370% of salary Financ ial measures: Return on tang ible equity 40%; Relative total shareholder return 40% Non-ﬁnancial measures: Susta inab il ity 20% The outcomes of both the annual and long-term incent ive plans are subject to a risk and control modif ier Increased shareholder requirements 500% of salary 400% of salary New directors’ remuneration policy – implementat ion in 2025 2025 salaries Subject to approval of the directors’ remuneration policy in May 2025, salaries will be reduced by 40 per cent for Bill and by 33 per cent for Diego, effective from 1 April 2025. 2025–27 LTIP awards to be granted in May 2025 The Committee will grant 2025-27 LTIP awards to the executive directors following the AGM on 8 May 2025. Subject to the approval of the new directors’ remuneration policy, and consider ing the very strong 2024 Group performance, the Committee has approved LTIP awards for the period of 2025-27 as follows: 2025–27 LTIP award (£) % of salary Bill Winters 7,350,000 490% Diego De Giorg i 4,070,000 370% The LTIP awards are dependent on our simpl iﬁed and re-focused performance measures and targets by the end of a three-year performance period. To reﬂect the increased long-term remuneration opportunity, the RoTE performance range has been increased, and for these awards will be 11.5 per cent for a threshold outcome up to 14.5 per cent for a maximum outcome. TSR will continue to have a performance range of threshold for relative median ranking up to a maximum outcome for upper quartile ranking. The sustainab il ity targets are focused on our net zero pathway and are quantitat ive in nature. The outcome of the awards is also subject to a risk and control modif ier to be assessed based on input from the Group Board Risk Committee to ensure the performance has been delivered with appropriate risk and control management. See pages 172 and 173 for further details 149 Standard Chartered – Annual Report 2024 Directors’ report How to use this report With in the d irectors’ remuneration report we have used colour coding to denote different elements of remuneration, as follows: Salary, pension, beneﬁts (ﬁxed remuneration) Annual incent ive LTIP We have also used the following icons for ease of navigat ion through th is section and to show alignment between remuneration and the strategic object ives of the Group. People and culture Ways of Working Innovation Resetting Globalisat ion Risk management Employees Lift ing Part ic ipat ion Investors Clients Sustainab il ity Accelerating Zero In conclusion, the Committee believes that the 2024 outcomes are appropriate in the context of the very strong performance delivered in 2024. The proposed directors’ remuneration policy, which will apply from 2025, subject to shareholder approval, delivers on the crit ical need to have a reward pol icy in place which enables the Board to attract, retain and motivate our executive directors. We ask that our shareholders support the policy on the basis that it: • Gives a sign iﬁcantly h igher weight ing to performance- linked variable pay which will incent iv ise and appropriately reward outperformance at this important growth phase for the Bank. • Reinforces the alignment of executive director reward and shareholder experience with a greater proportion of pay that is directly linked to Group performance and the share price, and outcomes based on scorecards that are focused on ﬁnancial return measures and l inked to our strategic aims. • Provides a competit ive max imum opportunity, that is with in the market range, and better aligned with remuneration structures in markets where we compete for talent, enhancing our abil ity to attract and reta in executives. • Mit igates internal pay compression pressure. In the rest of this report, we present the disclosures required by regulations, as well as addit ional informat ion to expla in how remuneration for our executives aligns with our strategy, shareholder interests and wider workforce pay. In making remuneration decis ions for 2024 and beyond, we have also been mindful of the experience of our wider stakeholder group. I would like to thank my fellow Committee members for the work they have put into the Committee in 2024 and our shareholders for the valuable ins ights that they provided during a very productive round of engagement in recent months. Shir ish Apte Chair of the Remuneration Committee (All disclosures in the directors’ remuneration report are unaudited unless otherwise stated. Disclosures marked as audited should be considered audited in the context of the ﬁnanc ial statements as a whole.) Directors’ report Directors’ remuneration report 150 Standard Chartered – Annual Report 2023 How does executive director remuneration link to Group strategy? As measured by 2024 Annual incent ive 2022-24 LTIP Financ ial KPIs Further details can be found on pages 157 and 161 • Income Financ ial results • Costs • Return on tangible equity • Common Equity Tier 1 ratio • Relative total shareholder return Strategic prior it ies Further details can be found on page 18 • Network business Achievement against objectives • Afﬂuent client business • Dig ital Ventures • Mass Retail business • Sustainab il ity Crit ical enablers Further details can be found on page 20 • People and culture • Ways of working • Innovation How do executive directors’ remuneration outcomes compare with the maximum opportunity? Bill Winters Diego De Giorg i 1,452 2,215 Actual Max Actual Max 2024 annual incent ive (£000) 2022-24 LTIP projected outcome (£000) 1 958 1,462 Bill Winters 6,961 Actual Max 920 6,126 1 The values of the projected outcome and maximum opportunity are calculated using a three-month average share price to 31 December 2024. Remuneration at a glance How did we determine executive director variable remuneration outcomes in 2024? 2024 annual incent ive Financ ials 30% Clients 12% 8% Sustainab il ity 4% Productiv ity and transformation 7% People Risk and control Personal performance 0% 8% 9% 50% 4% 8% 4% 12% 10% 2022-24 LTIP RoTE with CET1 underpin 30% 30% Relative TSR Sustainab il ity Strategic 14% 15% 14% 25% 30% 30% Following the detailed performance assessment of measures and proof points, the Committee considered the performance outcomes of both scorecards to be appropriate and consistent with Group performance. 88% 2022–24 LTIP projected outcome 66% 2024 annual incent ive outcome 151 Standard Chartered – Annual Report 2023 How we paid our executive directors in 2024 (single total ﬁgure of remuneration) £000 LTIP Annual incent ive Variable remuneration Salary, pension, beneﬁts Fixed remuneration How the CEO’s remuneration is delivered over time 1 Awarded for 2024 £000 Delivery method Structure and tim ing of payment Salary £2,517 CEO: 50% cash Cash CEO: 50% shares Shares Released in equal amounts between 2025 and 2029 Pension £252 100% cash Cash Annual incent ive 2 £1,462 50% cash Cash 50% shares Shares LTIP 2,3 £7,350 100% shares Forward looking performance measured over 2025 to 2027 Shares Delivered in equal amounts between 2028 and 2032 (subject to 12-month retention post vest) 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 The diagram shows how Bill’s remuneration is released over time, with the ﬁnal component of pay granted in 2024 being released in 2032. Diego’s pay awarded for 2024 will release over the same period. 2 Variable remuneration, includ ing annual incent ive and LTIP, is subject to clawback for up to 10 years from grant. 3 To be awarded in considerat ion of Group performance in 2024, under the new directors’ remuneration policy, subject to approval at the AGM in May 2025. Alignment of executive remuneration with shareholder experience As shown in the illustrat ion above, a s ign iﬁcant proport ion of executive director remuneration is delivered in shares, creating a strong alignment of interests between executive directors and shareholders. Under the new directors’ remuneration policy, the rebalance towards performance-linked, variable remuneration will further increase the proportion of remuneration that is delivered in shares to, at maximum performance, around 70 per cent of total remuneration for both executive directors. Executive directors will be required to mainta in s ign iﬁcant personal share hold ings of 500 per cent of salary for the CEO and 400 per cent of salary for the GCFO. Appropriateness of executive directors’ remuneration We mainta in a cons istent remuneration approach for all employees, in line with our Fair Pay Charter. Remuneration for executive directors is reviewed annually against internal and external measures to ensure appropriate levels, aligned with the approach for other employees. During 2024, as part of the development of the directors’ remuneration policy, ﬁxed and variable remuneration were reviewed against a peer group of internat ional banks to ensure the new pol icy would be appropriately competit ive. See pages 146 and 147 for full deta ils of the benchmarking process. Directors’ report 2024 2023 Bill Winters 3,035 3,068 1,462 6,126 10,656 7,309 2,769 2,812 1,462 2024 Diego De Giorg i 1,811 958 920 2,135 152 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Remuneration alignment Alignment with... Our culture Our performance and reward framework supports us in embedding a high– performance culture and aligns with our princ iple that colleagues should share in the success of the Group. • Remuneration decis ions are guided by our Fair Pay Charter. See our 2024 Divers ity, Equal ity and Inclusion Impact Report for further details on our Fair Pay Charter here: sc.com/fairpayreport • The wider workforce and our executive directors partic ipate in continuous performance management and feedback to ensure that performance is discussed and assessed throughout the year. • Employee performance is assessed based on what is achieved and how it is achieved in line with our valued behaviours. Our remuneration structure and polic ies ensure that behav iours consistent with these values are appropriately recognised and rewarded. • Our LTIP is subject to an assessment to ensure appropriate levels of conduct have been demonstrated to meet our conduct gateway requirement. Our strategy Remuneration decis ions made across the Group, includ ing for our executive directors, align with our strategic prior it ies and our Stands, includ ing our comm itment to sustainable social and economic development. • Performance measures in our Group and LTIP scorecards are designed to drive achievement of the ﬁnanc ial and strategic goals that will deliver long-term sustainable value for our stakeholders. • Sustainab il ity is a key considerat ion for setting and measuring ﬁnanc ial and strategic targets. • If scorecard outcomes are not consistent with progress against our strategic commitments, the Committee has the discret ion to make adjustments. See page 150 for further details on how our incent ive plans are al igned to our strategy Our approach to risk and control The determinat ion of our remuneration policy and outcomes align with the Group’s risk and control framework. • The Group has a robust formal process for review ing r isk and control matters and reﬂecting these in remuneration outcomes at both an ind iv idual and collective level. • The most sign iﬁcant r isk and control matters are escalated for oversight by the Remuneration Committee and, at year-end, these are reviewed to determine any impact to Group incent ives. • Long-term sustainable performance is supported through the abil ity to make adjustments to variable remuneration for risk, control and conduct behaviours, the deferral of variable remuneration, and the abil ity to apply malus and clawback where appropriate. • Incentives for employees engaged in Audit, Risk and Compliance functions are set independently of the businesses they oversee. See page 180 for further details Performance aligned remuneration The balance between ﬁxed and variable remuneration is geared to provide a greater proportion of ﬁxed remuneration for more junior employees to g ive more ﬁnanc ial secur ity. In comparison, for more senior employees, includ ing the execut ive directors, the variable remuneration opportunity is larger, reﬂecting their abil ity to inﬂuence the Group’s performance. Salary Annual incent ive LTIP Senior management (incl executive directors) 31% 58% 79% 88% 90% 10% 12% 21% 42% 41% 28% Senior professional Intermediate professional Junior professional Admin/Support 153 Standard Chartered – Annual Report 2024 • Remuneration outcomes reﬂect key ﬁnanc ial and non- ﬁnancial performance del ivered in the year. Sixty per cent of the 2025 executive director annual incent ive scorecard and 80 per cent of the 2025 – 27 LTIP award will be based on ﬁnancial performance. • Variable remuneration awards are based on stretching targets which are subject to robust assessment, as evidenced by histor ical outcomes. • A sign iﬁcant port ion of executive remuneration is paid in shares, and shareholding requirements apply. • Post-employment shareholding requirements further reinforce the importance of sustainable long-term performance. • The Committee Chair regularly engages with shareholders on remuneration matters. • The same remuneration princ iples apply to executives and employees, includ ing cons istent beneﬁt and pension provis ion by locat ion. See pages 164 and 169 for further details • Incentives for executive directors are based on a set of measures that strongly align with those used to determine discret ionary incent ives across the Group. • Measures to improve the overall employee experience across the Group by creating a better work environment for our employees are included in the Group scorecard. • The Committee Chair regularly meets with our lead regulators to discuss our remuneration approach and outcomes. • Remuneration outcomes take into account risk, control and conduct considerat ions. • Pay structures are aligned to relevant best practice, includ ing the applicat ion of deferrals and malus/clawback. • Remuneration outcomes reﬂect performance delivered includ ing cl ient-related performance objectives (e.g., improved client satisfact ion). • Sustainab il ity measures used with in the Group scorecard and LTIP are aligned to our Sustainab il ity Aspirat ions, reﬂect ing our commitment to sustainable social and economic development. • The Committee tracks gender and ethnic ity pay gaps, and actively monitors the actions being taken to close them. Clients Employees Society and sustainab il ity Investors Executive director remuneration Regulators and governments How is our executive director remuneration aligned to stakeholder experience? How does our directors’ remuneration policy address other key features set out in the UK Corporate Governance Code? Proportional ity • In line with our commitment to pay for performance, a sign iﬁcant proport ion of executive director pay is delivered through incent ives based on performance metrics aligned with our strategy. Our new directors’ remuneration policy further enhances this with an increased proportion of performance-linked variable pay. • The Committee sets robust and stretching targets to ensure there is a clear link between Group performance and executive director awards. • Executive directors’ interests are further aligned with shareholders’ long-term interests through the deferred release of annual incent ives and LTIP awards. • Malus and clawback provis ions apply for up to 10 years from grant, in alignment with remuneration regulations for senior management. No malus or clawback provis ions were used during 2024. • Shareholding requirements are in place for executive directors, requir ing them to bu ild and mainta in a sign iﬁcant sharehold ing in Company shares while in employment and for a period of two years from stepping down as a director. Bill currently exceeds his respective shareholding requirements and Diego is continu ing to build up his requirement. Predictab il ity • The range of possible rewards to ind iv idual executive directors is set out in the scenario charts on page 170, where we also demonstrate the impact of a 50 per cent share price appreciat ion over the three-year performance period of the LTIP. • In addit ion to max imum award levels specif ied in our current and new remuneration polic ies, the value of incent ive awards w ill vary depending on achievement against specif ied performance targets and the share price at the time of delivery for the sign iﬁcant part of reward which is delivered in shares. Simpl ic ity and clarity • Simpl ic ity is a key driver for the structure of our executive pay, subject to adherence to regulatory requirements aris ing from operat ing as a UK–regulated bank. • Our remuneration structure comprises straightforward and well-understood components. The purpose, structure, alignment with strategy and consistency with arrangements for the wider workforce are clearly set out in the remuneration policy. See pages 164 and 169 for further details • We set and report our performance-related measures, targets and outcomes in a clear and balanced way. Directors’ report 154 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Committee at a glance Committee focus during 2024 The Committee Chair continues to engage with shareholders to seek views and feedback on key decis ions the Comm ittee takes each year. In 2024, shareholders were consulted extensively on the development of the new directors’ remuneration policy scheduled to be put to shareholders for approval at the 2025 AGM. Read more on pages 145 to 147 What are the main responsib il it ies of the Committee? The Committee is responsible for setting the princ iples, parameters and governance framework for the Group’s remuneration policy and overseeing its implementat ion. This includes: • Determin ing the framework and pol ic ies for the remuneration of the Group Chairman, the executive directors and other senior management consider ing our Fair Pay Charter, wider workforce remuneration and alignment with culture and conduct. • Overseeing the alignment of reward, culture, the strategic prior it ies and our Stands. • Approving the Group discret ionary remunerat ion pool, taking into account all aspects of performance. • Overseeing the Fair Pay Charter. The Committee has written Terms of Reference that can be viewed at sc.com/termsofreference How did the Committee spend their time during their 2024 meetings? Senior management remuneration Executive remuneration, policy and shareholder engagement Group-wide reward, the Fair Pay Charter and pay divers ity Business performance and risk assessment review Regulatory and governance Shir ish Apte (Chair) 4/4 4/4 David Conner 1 4/4 Robin Lawther, CBE 4/4 Maria Ramos 4/4 Linda Yueh, CBE Who else attended Committee meetings in 2024? The Group Chairman; Group Chief Executive; Group Chief Financ ial Ofﬁcer; GCRO; Ch ief Strategy & Talent Ofﬁcer; Global Head, Performance, Reward and Beneﬁts; Group Head, Conduct, Financ ial Cr ime and Compliance; Group Company Secretary; Chair of the Audit Committee; Group Head, Internal Audit. See pages 106 to 108 for biograph ical deta ils of the Committee members The Committee held one addit ional ad-hoc meet ing in 2024, attended by four out of the ﬁve members. Linda Yueh did not attend this meeting due to a prior business commitment. However, she received the papers and provided feedback. 10% 20% 20% 10% 40% Committee composit ion 1 David Conner stepped down from the Committee on 30 December 2024. 155 Standard Chartered – Annual Report 2024 Directors’ report Action plan The 2024 action plan set out a number of actions aris ing from the internally facil itated effect iveness review conducted in 2023. The action plan was regularly reviewed during the year and good progress has been made against the actions, with all of them being completed. The 2025 action plan for the Committee reﬂects suggestions from the 2024 review and continues to build on the solid progress made last year: • Continue to focus on pay for performance across the Group. If approved by shareholders. • Ensure the new Policy continues to align with the Group’s strategy. • Consider better leveraging the Investor Relations Team to solic it more shareholder v iews. • Improve the oversight of remuneration communicat ions to ensure more consistent messages. What advice does the Committee receive? PwC was re-appointed as the Committee’s remuneration adviser in 2021. The Committee conducts a detailed review of potential advisers every three or four years. PwC is a signatory to the voluntary remuneration consulting Code of Conduct. It provides other services to the Group includ ing assurance, adv isory, consultancy and tax advice. The Committee is satisf ied the adv ice received was object ive and independent and that no potential or actual conﬂict arose. The total fees paid to PwC (partly a ﬁxed fee and partly on a time and materials basis) was GBP142,410, which includes advice to the Committee relating to executive directors’ remuneration and regulatory matters. The GCFO and Group Chief Risk Ofﬁcer regularly update the Committee on ﬁnance and risk matters and the Committee also receives input from the Board Risk Committee, Culture and Sustainab il ity Committee, and Chair of the Board Audit Committee on relevant matters. The Committee manages conﬂicts of interest when receiv ing views from senior ind iv iduals on remuneration proposals and no ind iv idual is involved in decid ing the ir own pay. How effective was the Committee in 2024? The 2024 Board and Committee’s effectiveness review was conducted internally, facil itated by the Group Company Secretary, and in accordance with the UK Code. In a year dominated by the Committee’s review of the new directors’ remuneration policy and consultation with investors and shareholder bodies, the feedback on the Committee’s function ing and effect iveness was posit ive and spec if ically highl ighted the follow ing: • The Committee’s oversight of the policy was highly rated, and the Chair was commended for leading an extensive consultation. • Meetings are well run, and presenters convey detailed informat ion conc isely. • Papers are of high quality and contribut ions from the Group Reward Team were highly rated. 87% of colleagues responded to the Group’s engagement survey, My Voice, which seeks to understand colleague sentiment in respect of performance management, the process of giv ing and receiv ing feedback and reward. The Committee recognises the importance of seeking feedback from colleagues on remuneration matters to inform decis ion-mak ing. The Culture and Sustainab il ity Committee (CSC) is responsible for the Group’s workforce engagement programme and provides colleague feedback to the Remuneration Committee to inform remuneration decis ion-mak ing. The Committee is also provided with the views of employees through updates from the annual My Voice and Performance & Reward surveys. The Board engages with and listens to the views of employees. In 2024, the Board met with colleagues in various markets in specially arranged sessions where directors were able to appreciate the challenges, successes, concerns and opportunit ies shared by colleagues in each of the markets. See our Culture and Sustainab il ity Committee report on pages 134 to 136 and our Stakeholder section on pages 38 to 41 for further informat ion on our workforce engagement framework For Against Withheld Advisory vote on the 2023 remuneration report at 2024 AGM 1 484,724,890 95.3% 23,766,538 4.7% 1,611,326 Bind ing vote to approve the 2022 d irectors’ remuneration policy at 2022 AGM 404,531,068 68.8% 183,344,607 31.2% 24,340,637 1 If withheld votes are considered as part of the overall voting outcome distr ibut ion, 95.02 per cent of votes would have been ‘For’ the resolution. How did our shareholders vote? How does the Committee understand the views of our workforce? 156 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report This section, which is subject to an advisory vote at the 2025 AGM, outlines the 2024 executive director remuneration delivered under the 2022 shareholder-approved remuneration policy and the 2024 fees for the Group Chairman and INEDs. Our current directors’ remuneration policy is set out in full on pages 159 to 164 of the 2021 Annual Report and on our website at sc.com The following table sets out the 2024 single total ﬁgure of remuneration for the CEO and GCFO showing a year-on-year increase of 46 per cent for the CEO, reﬂecting the Group’s consistent, strong performance over the last three years and the sign iﬁcant increase in our share price over recent months. Directors’ remuneration in 2024 (audited) Single total ﬁgure of remuneration £000 Bill Winters Diego De Giorg i 1 Andy Halford 2 £000 2024 2023 2024 2023 2024 2023 Salary 2,517 2,496 1,641 – 9 1,596 Pension 252 251 109 – 0.9 160 Beneﬁts 299 288 61 – 0.5 110 Total ﬁxed remuneration 3,068 3,035 1,811 – 10 1,866 Annual incent ive award 1,462 1,462 958 – – 920 LTIP outcome Value based on performance 3,248 2,104 – – – 1,345 Value based on share price growth 2,878 708 – – – 453 Total variable remuneration 7,588 4,274 958 – – 2,718 Single total ﬁgure of remuneration 10,656 7,309 2,769 – 10 4,584 1 Diego was appointed to the Board and as GCFO on 3 January 2024. The remuneration shown for 2024 is in respect of his services as GCFO during the year 2 Andy Halford stepped down from the Board on 2 January 2024. The remuneration shown for 2024 is in respect of his services as GCFO during the year Notes to the single total ﬁgure of remuneration table Beneﬁts • Bill receives a contribut ion towards h is annual tax preparation due to the complexity of his tax affairs, partly due to Group business travel requirements. • Bill has the use of a car and driver. This is a role-based provis ion g iven the executive role and the associated security and privacy requirements. • 2024 ﬁgures above relate to the 2023/24 UK tax year and the 2023 ﬁgures relate to the 2022/23 UK tax year. Annual incent ive award • Received in respect of 2024 and 2023. Outcome of LTIP award • For 2024, projected outcome values of the 2022-24 LTIP awards vesting, awarded in 2022. • For 2023, the ﬁnal outcomes of the 2021-23 LTIP awards were lower than the projected values disclosed in last year’s report and have been restated. At that time, the projected performance outcome was 66 per cent. When the relative TSR performance was assessed in March 2024, the actual outcome was 57 per cent with a share price of £6.551, resulting in a lower outcome. Andy Halford Andy Halford stepped down from the Board on 2 January 2024, after which he continued as a Senior Adviser, working on strategic projects for the Group, until retir ing on 31 August 2024. Dur ing this time, Andy continued to receive his salary and beneﬁts until his retirement. As an elig ible leaver, Andy reta ined his exist ing LTIP awards wh ich are subject to the achievement of performance measures and which have been prorated up to the date of his retirement on 31 August 2024. Based on the projected outcome of 88 per cent, 378,400 shares are expected to vest in March 2025. The estimated value of this outcome is £3,479,956 based on the three-month average share price to 31 December 2024 of £9.197. Payments to former directors There were no payments or pension contribut ions made to, or in respect of, past directors in the year in excess of the min imum threshold of £50,000, set for this purpose. Variable remuneration Fixed remuneration 2024 2023 3,035 3,068 1,462 6,126 10,656 7,309 2,812 1,462 2024 2023 1,866 10 3,480 6,126 4,584 1,798 920 2,769 2024 1,811 958 20 35 £000 157 Standard Chartered – Annual Report 2024 Directors’ report Annual incent ive awards for execut ive directors are based on the assessment of the Group scorecard and personal performance, in line with the current remuneration policy. For Bill and Diego, the Committee considered the Group scorecard outcome, ind iv idual performance, and risk, control, and conduct-related matters and determined that the scorecard outcome appropriately reﬂects performance in 2024. The Committee also determined that both directors exhib ited appropr iate levels of conduct and met the gateway requirement to be elig ible for an incent ive. The annual incent ive outcomes for B ill and Diego are summarised below: Executive director scorecard outcomes Measure Weight ing Bill Winters outcome Diego De Giorg i outcome Financ ial 50% 30% 30% Strategic 40% 27% 27% Personal performance 10% 9% 9% Total 100% 66% 66% Maximum annual incent ive opportun ity (£000) 2,215 1,452 Annual incent ive outcome (£000) 1,462 958 Assessment of the 2024 scorecard – ﬁnancial measures Measure Weight ing Threshold (0%) Maximum (100%) Achievement Outcome Income 1 ($) 9% 18.3bn 19.9bn 19.7bn 8% CIB Sustainable Finance Income 2 ($) 3% 864m 936m 1.0bn 3% Costs ($) 8% 12.1bn 11.2bn 11.7bn 4% RoTE 3 with a CET1 4 underpin of the higher of 13% or the min imum regulatory requ irement 30% 10.1% 12.4% 11.7% CET1 of 14.2% 15% 1 The Group’s reported 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 sign iﬁcant or mater ial in the context of the Group’s normal business earnings for the period and items which management and investors would ordinar ily ident ify separately when assess ing underlying performance period by period. 2 CCIB name changed to CIB in 2024 3 Underlying RoTE represents the ratio of the current year’s underlying proﬁt attributable to ordinary shareholders plus fair value on other comprehensive income equity movement relating to Ventures segment to the weighted average tangible equity, being ordinary shareholders’ equity less the intang ible assets for the reporting period. Underlying RoTE normally excludes material regulatory ﬁnes and certain other adjustments but, for remuneration purposes, this would be subject to review by the Committee 4 The CET1 underpin was set at the higher of 13 per cent or the min imum regulatory level as at 31 December 2024. In add it ion, the Comm ittee has the discret ion to take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced and implemented after the start of the performance period Assessment of the 2024 scorecard – strategic measures Clients (Network, Afﬂuent, Mass) Target Assessment • Improve client satisfact ion and cl ient experience ratings • Deliver cross border income growth in CIB • Deliver network growth in qualif ied cl ients across Afﬂuent activ ity • Mass market retail growth through new-to-bank personal customers • Grow value of Ventures • Client satisfact ion rat ings were exceptional, with strong WRB Net Promoter and CIB Client Engagement results. • Increased CIB cross border income to $7.3 bill ion (versus $6.9 bill ion in 2023). • Afﬂuent income growth outperformed ($293 mill ion versus $213 mill ion in 2023) driven by a focus on our International Clients strategy. • Mass market retail growth from over 1.8 mill ion new Partnership active clients and new afﬂuent sign-ups. • Ventures value grew, driven by Mox and Trust new customers and Ventures inst itut ional clients. Weight ing – 12% Outcome – 9% Sustainab il ity Target Assessment • Meeting key milestones through build ing infrastructure relating to client, transaction and central data for deliver ing on our net zero amb it ion. • Reducing our ﬁnanced emiss ions for key sectors in line with our risk appetite and based on inter im 2030 sectoral targets. • Reducing Scope 1 and 2 emiss ions in line with our operational net zero target by 2025. • Achieved all milestones set for 2024. • Total ﬁnanced emiss ions are track ing well below our risk appetite across all key sectors (Oil & Gas, Power, Automobile Manufactures, and Steel). • Reduction in Scope 1 and 2 emiss ions are track ing to exceed targets with the completion of major key projects reducing carbon emiss ions globally. Weight ing – 4% Outcome – 4% Annual incent ive awards for the execut ive directors 158 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Productiv ity and transformat ion Target Assessment • Grow proportion of dig itally in it iated transactions and dig ital sales adopt ion. • Transformational Change: percentage of transformation change programmes on track. • Productiv ity: Increase Operat ing Proﬁt less Credit Impairment per FTE. • Increased CIB dig ital volumes from Mob ile and Trade, improved client satisfact ion score on Stra ight2Bank and higher WRB mobile adoption. • Exceeded transformational change target with over 81% of programmes on track (versus target of 70%). • Operating Proﬁt less Credit Impairment per FTE increased, mainly driven by higher underlying Proﬁt Before Tax. Weight ing – 8% Outcome – 6% People and culture Target Assessment • Improve employee engagement as evidenced in our annual My Voice survey. • Improve senior female representation to support reaching 35% by 2025. • Improve our ‘culture of inclus ion’ score ( internal index). • There was no improvement on the employee engagement and ‘culture of inclus ion’ scores in the 2024 My Voice survey. This was against a benchmark of all-time high scores achieved in 2023. Employee experience continues to be posit ive, w ith most scores remain ing h igher than 2022 levels. • Senior female representation is above threshold but below target for 2024. Weight ing – 4% Outcome – targets not achieved Risk and controls Target Assessment • Non-ﬁnancial r isk reduction. • Self-ident iﬁcation of aud it issues. • There was a strong outcome for non-ﬁnancial r isk reduction, achiev ing 124% of target in 2024. • Targets set for self-ident iﬁcation of aud it issues were not met. Weight ing – 12% Outcome – 8% Assessment of the 2024 scorecard – personal performance The Committee considers areas of responsib il ity together with progress against key object ives for the year and personal contribut ion to the Group scorecard outcome. Th is element focuses on measures that reﬂect real personal impact, such as transformation of processes and improv ing the culture w ith in the Bank. Key ach ievements against Bill’s and Diego’s personal objectives are summar ised in the tables on the next pages. Bill Winters 2024 has been another very strong year for Bill during which his drive, strategic vis ion and relentless execut ion led the Group to achieve the strongest set of results we have published in recent years. Bill mainta ined an intense focus on delivery against a strategy that has been further sharpened with the implementat ion of our F it for Growth in it iat ive and organ isat ional design changes to drive transformation. He has promoted the interests of the Bank through extensive internal and external engagement, devoting sign iﬁcant t ime to key stakeholders includ ing cl ients, investors, regulators and colleagues. Our posit ive ﬁnancial and strateg ic results are increas ingly be ing recognised in our share price, reﬂecting the markets’ appreciat ion of the foundations laid over his tenure and the greatly improved outlook for the Group. This trend is reinforced by our achievement of 11.7 per cent RoTE for 2024, the highest since Bill’s appointment in 2015. These results are a testament to Bill’s strong and effective leadership. 159 Standard Chartered – Annual Report 2024 Directors’ report Financ ial performance and r isk and controls • Further progress towards an efﬁcient and more proﬁtable Bank while mainta in ing focus on risk and control. • Bill implemented sign iﬁcant pos it ive transformat ion through the elim inat ion of regional structures and streamlin ing management layers, reduc ing frict ion and allow ing us to operate more efﬁciently. • The transformation agenda continues to progress under Bill’s leadership, with a strong focus on communicat ing the importance of, and the beneﬁts from, the transformation. – In our annual My Voice all-employee survey, nearly 90% of colleagues felt we were adapting our ways of working to deliver the strategy. – 85% of colleagues ind icated they are clear on the des ired outcomes and beneﬁts of our Fit for Growth programme. – We have ident iﬁed and are fund ing over 140 in it iat ives for s impl ify ing, standardis ing and dig it is ing operat ions, with the aim of generating more than $1.5 bill ion of sustainable saves. • Bill has overseen sign iﬁcant enhancements to the Group’s Technology & Operat ions control framework to ensure the security of our dig ital portfol io, and ensured momentum was mainta ined follow ing the departure of the Group Chief Technology, Operations and Transformation Ofﬁcer during the year. • Bill continues to personally champion the sustainab il ity agenda both for the Bank and the industry more widely, and the Bank has continued to be recognised as an industry leader. – Bill is a member of the GFANZ Princ ipals Group, a found ing member of the World Bank Private Sector Investment Lab, and sits on the Dist ingu ished Advisory Group of the Integrity Council for Voluntary Carbon Markets and the board of Climate Impact X (CIX). The Bank contributed to the UK Transit ion F inance Market Review. – We achieved ﬁrst place in Climate X’s assessment of the world’s largest commercial banks climate adaptation maturity. Innovation • Further promote our culture of innovat ion and maxim ise synergies between the main bank and our SC Ventures. • Bill has continued to champion and role-model an innovat ion m indset across the Group, includ ing targeted tra in ing for the Management Team. Over 330 ideas from 14 Innovation Challenges were launched in 2024, and over 300 employees have been upskilled in innovat ion techn iques. • Bill is a leading advocate for our Ventures business, which complements the services offered by the tradit ional bank by address ing the dig ital bank ing and lifestyle needs of retail clients, with a portfolio of fast growing banks (Mox, Trust), banking-as-a-service (Audax), dig ital retail onboarding (Appro), and ﬁnanc ial plann ing and wealth management (Vault22). Good progress also made in partnership with CIB, in build ing inst itut ional grade dig ital assets with capabil it ies from issuance to settlement products, and in developing dist inct business models to support trade and supply chains (e.g., Olea). • We have seen increas ing cl ient demand and validat ion for these solut ions and are receiv ing industry recognit ion. – Trust, founded in 2022, is the fourth largest retail bank in Singapore by customer size, Appro won the grand prize at the Fintech World Cup during Dubai FinTech Summit and Audax was named amongst the 20 Hottest Startups of 2024 by Singapore Business Review. • In 2024, Bill added the CEO of SC Ventures to the Management Team to reinforce the strong connections between our businesses, functions and ventures. People and culture • Continue to build a high performance environment and embed the culture of excellence. • Bill has led the Group through major senior management transit ions in 2024, includ ing the successful onboarding of Diego De Giorg i as GCFO, and Roberto Hoornweg and Sun il Kaushal as co-heads of CIB. • Bill also oversaw the departure of Management Team members and expanded the responsib il it ies of others, increas ing res il ience, and creat ing opportunit ies for growth and a stronger pipel ine for success ion. • There has been continued focus on build ing and embedd ing a culture of excellence across the Group with an emphasise on high-performance, feedback, recognit ion and a focus on clear different iat ion in pay outcomes to reﬂect performance. • Bill has inst illed a h igh level of energy and posit iv ity into the organisat ion wh ich can be challenging in a year of substantial change. He encouraged colleagues to align their focus to the delivery of the clear strategic prior it ies we have set. – In our annual My Voice survey, nearly 90% of colleagues ind icated that they understand the Bank’s strategy and believe it will enable us to be more competit ive. Weight ing – 10% Outcome – 9% 160 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Diego has demonstrated strong leadership in his ﬁrst year as Group CFO, bring ing energy, a fresh perspect ive and a desire for change and improvement for the Bank and his own function. Diego has quickly built his inﬂuence with in the Group and has developed strong relationsh ips w ith external stakeholders, includ ing investors. He has helped shape the focus for the Management Team in 2024 with a convinc ing narrat ive, supported by rigorous analysis. Financ ial Goal Assessment • Financ ial performance: contribute to the delivery of Group ﬁnancial performance and operating leverage. • Finance function performance: partner with and support business in the execution of the Group’s strategy. • Diego has played a pivotal role in driv ing strateg ic in it iat ives in CIB and WRB, leveraging his operational experience, with a focus on deliver ing susta inably higher returns. • Our equity story has been simpl iﬁed, w ith a clear narrative on our different iated capabil it ies, and Diego has forged strong links with our investors, and increas ingly the media, to communicate this story. • He has ensured the Group mainta ined a strong cost d isc ipl ine and delivered posit ive jaws for the year. • Diego has played a key role in driv ing closer collaborat ion between the ﬁnance function and the business on balance sheet optim isat ion and RWA efﬁc iency, result ing in further increased capital velocity, beneﬁtt ing both our RoTE and our ab il ity to return capital to our shareholders. • He has been pivotal in driv ing t imely and high quality management informat ion to support execution of our strategy and allocation of resources to the most RoTE accretive opportunit ies. Productiv ity and transformat ion • Transformation and simpl iﬁcation: lead implementat ion of strategic change in it iat ives across the Group. • Diego has played a key role in starting up the Fit for Growth programme, and mobil is ing Group-wide efforts to simpl ify, standard ise and dig it ise key elements of the Bank. He has driven the execution of a set of in it iat ives ident iﬁed to del iver efﬁc iency saves, with the ﬁnance function playing a key role in tracking and monitor ing progress. • Diego has ensured the ﬁnance function plays a pivotal role in provid ing healthy challenge and steering of our investment spend. Risk and controls • Process and controls: continue to progress on major multi-year programs and address regulatory requirements. • Diego has focused intensely on simpl ify ing processes with in the ﬁnance funct ion, enhancing the end-to-end governance model and data quality to ensure our risk and control environment is managed effectively. • Diego has implemented several new in it iat ives, such as balance sheet opt im isat ion and targeted business reviews. • He has mainta ined open and transparent relat ionsh ips w ith regulators and kept them abreast of our progress on short- and medium-term regulatory prior it ies. Weight ing – 10% Outcome – 9% Diego De Giorg i 161 Standard Chartered – Annual Report 2024 Directors’ report The LTIP values included in the single total ﬁgure of remuneration for 2024 are based on the awards that will be subject to ﬁnal performance testing in March 2025. These awards were granted in 2022 with a face value of 120 per cent of ﬁxed pay, to incent iv ise the achievement of the Group’s prior it ies over the three-year period 2022 to 2024. The awards are share-based and are subject to the performance targets set out below which were set when the awards were granted and have not been adjusted since. A conduct gateway requirement must be met before any awards vest. The Committee concluded that Bill exhib ited appropriate conduct during the performance period and, therefore, the conduct gateway was met. Diego did not partic ipate in this award. RoTE performance of 11.7 per cent was achieved, resulting in a 30 per cent outcome and relative TSR is projected to be ranked above upper quartile resulting in a projected outcome of 30 per cent. The Committee considered performance against the sustainab il ity and strategic proof points set out in the table below and determined that an outcome of 28 per cent was appropriate. Based on these assessments, the total projected performance outcome is 88 per cent. The ﬁnal relative TSR performance will be assessed in March 2025 and any change to the overall outcome will be reported in the 2025 directors’ remuneration report. The awards will vest pro rata over 2025 to 2029 and the shares will be subject to a 12-month retention period post-vesting. Malus and clawback provis ions apply. 2022-24 LTIP projected outcome for Bill Winters Award share price (£) Projected outcome Valuation share price (£) 2022-24 LTIP projected outcome (£000) Bill Winters 4.876 88% 9.197 6,126 See page 156 for the value attributable to share price growth in the single total ﬁgure of remuneration Projected performance outcome Measure Weight ing Min imum performance (25% outcome) Maximum performance (100% outcome) Assessment of achievement Outcome status Projected outcome RoTE 1 in 2024 plus CET1 2 underpin of the higher of 13% or the min imum regulatory requirement 30% 7% 11% RoTE 11.7% and CET1 14.2% Conﬁrmed 30% Relative TSR performance against peer group 30% Median Upper quartile Currently estimated above upper quartile Projected 30% Sustainab il ity 15% Targets set for sustainab il ity measures linked to the business strategy Above target performance achieved Conﬁrmed 14% Other strategic measures 25% Targets set for strategic measures linked to the business strategy Above target performance achieved Conﬁrmed 14% Total 2022-24 LTIP awards projected outcomes 88% 1 Underlying RoTE represents the ratio of the current year’s underlying proﬁt attributable to ordinary shareholders plus fair value on other comprehensive income equity movement relating to Ventures segment to the weighted average tangible equity, being ordinary shareholders’ equity less the intang ible assets for the reporting period. Underlying RoTE normally excludes material regulatory ﬁnes and certain other adjustments but, for remuneration purposes, this would be subject to review by the Committee 2 The CET1 underpin was set at the higher of 13 per cent or the min imum regulatory level at 31 December 2024. In add it ion, the Comm ittee has the discret ion to take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced and implemented after the start of the performance period 3 Final TSR performance will be assessed three years from the date of award, in March 2025 Assessment of non-ﬁnancial measures Sustainab il ity Proof point Assessment • Implement roadmap to achieve aim of net zero by 2050 • Partial vesting on the basis that 2022 targets were not fully achieved. Commitments were fully achieved in 2023 and 2024. • Progress towards target of $300 bill ion in green and transit ion ﬁnance between 2021 and 2030 al igned with our Green and Sustainable Product Framework and Transit ion F inance Framework • We have exceeded our target of mobil is ing $30 bill ion per year over the period and are on track to meet the 2030 commitment of $300 bill ion. • Progress on goal for clients in carbon-intens ive industr ies to have a strategy to trans it ion the ir business in line with the Paris Agreement • Financed emiss ions cont inue to decrease from baseline and remain under risk appetite lim its w ith in four of the most carbon intens ive sectors: O il & Gas; Power; Steel; Auto. LTIP awards 162 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Responsible company Proof point Assessment • Lift partic ipat ion of small businesses through increas ing access to ﬁnancial serv ices • We have made progress against our goals to lift the partic ipat ion of female entrepreneurs and SMEs, and to support companies to improve working and environmental standards. • However, we have not achieved the targets orig inally set in 2022 and, as such, have not allocated any vesting for these measures. • Support companies to improve working and environmental standards Clients (Network, Afﬂuent, Mass and Ventures) Proof point Assessment • Improve client satisfact ion rat ing evidenced in surveys and internal benchmarks • Strong performance across all three years based on strengthening of CIB engagement and experience scores and WRB net promoter score. • Deliver growth in afﬂuent wealth client activ ity and increase the number of active personal clients • Partial outcome based on strong performance in Afﬂuent Network growth for 2024 and 2023, following weaker performance in 2022, which was adversely impacted by COVID lockdowns, the Russia-Ukraine war and aggressive FED rate hikes. • Deliver network income growth in Corporate, Commercial & Institut ional Banking (now CIB) • Strong cross border income performance across all three years driven by higher underlying growth. • Grow value of Dig ital Ventures • Partial outcome based on exceeding targets in 2024 and 2023, driven by Mox and Trust new to bank customers, and SCV Institut ional Cl ients growth (2024 only), following weaker performance in 2022, which was adversely impacted by market volatil ity and delays to ventures launches. Enablers (Innovation, new ways of working and people) Proof point Assessment • Increase senior female representation to 34 per cent • Female representation was 33.1% in 2024, 32.5% in 2023, and 32.1% in 2022, versus a starting point of 30.7% at the end of 2021. • However, we only achieved our annual target in 2022 resulting in partial vesting. • Improve employee engagement • Employee net promoter score targets exceeded in all three years. The ﬁnal target of 17.4 for 2024 was exceeded two years early, in 2022, and remained above target throughout the period, reaching a high of 25.6 in 2023. • Increase our culture of inclus ion score (internal index) • The My Voice 2024 inclus ion score was 82.1% versus a target of 84.6% • While the posit ion has improved from the 2021 baseline of 80.1%, we did not achieve our annual targets and we have not allocated any vesting for the measure. • Improve employee perception of innovat ion • The My Voice score for this measure was 73% for 2024, which has been broadly ﬂat since 2022. • However, this is below the baseline of 76% in 2021 and we did not achieve our annual targets. As such, we have not allocated any vesting for the measure. Responsib il ity and controls Proof point Assessment • Improve effectiveness of risk and control governance • We achieved or exceeded our non-ﬁnanc ial r isk reduction targets in 2023 and 2024, but only partially achieved targets in 2022. • Partial vesting given Audit self-ident iﬁed issues are below the target threshold in 2024. • Successfully deliver milestones with in the informat ion and cyber secur ity risk management plan • We have continued to reduce our Cyber Risk proﬁle over the period, includ ing the del ivery of the Information and Cyber Security strategic plan, with all object ives ach ieved. Windfall gains When making LTIP awards the Committee reviews the proposed size of the award and considers the change in share price in the period leading up to the award compared with the share price when awards were made in the previous year. A sign iﬁcant fall in share price will increase the overall number of shares being awarded, and the Committee considers this, being mindful of the potential for a ‘windfall gain’. For awards made in 2022 the Committee reviewed the change in share price compared with the previous year and, being comfortable that the change was neglig ible, at (0.5) per cent, determ ined not to adjust the size of the awards. The Committee further reviews any increase in share price at the end of the performance period, when awards are due to begin vesting, and considers if any adjustment should be made where an increase in share price is not reﬂective of a corresponding improvement in underlying ﬁnanc ial performance. To date no adjustments have been made. 163 Standard Chartered – Annual Report 2024 Directors’ report Service contracts for executive directors Copies of the executive directors’ service contracts are available for inspect ion at the Group’s reg istered ofﬁce. These contracts have rolling 12-month and 6-month notice periods for Bill and Diego respectively and the dates of the executive directors’ current service contracts are shown below. Bill’s contract was updated effective 1 January 2020 to reﬂect the changes made following the implementat ion of the 2019 remunerat ion policy and the change to pension contribut ions. Executive directors are permitted to hold non-executive directorsh ip pos it ions in other organisat ions. Where such appo intments are agreed with the Board, the executive directors may retain any fees payable for their services. Bill served as a non-executive director for Novartis International AG and received fees for the period covered by this report as set out below. Date of Standard Chartered employment contract Details of any non-executive directorsh ip Fees retained for any non-executive directorsh ip (local currency) Bill Winters 1 January 2020 Novartis International AG CHF360,000 Diego De Giorg i 1 September 2023 – – Single ﬁgure of remuneration for the Chairman and INEDs (audited) The Chairman and INEDs were paid in monthly instalments during the year. The INEDs are required to hold shares with a nominal value of $1,000. The table below shows the fees and beneﬁts received by the Chairman and INEDs in 2024 and 2023. The INEDs’ 2024 beneﬁt ﬁgures are in respect of the 2023/24 tax year and the 2023 beneﬁt ﬁgures are in respect of the 2022/23 tax year to provide consistency with the reporting of sim ilar beneﬁts in previous years and with those received by executive directors. Fees £000 Beneﬁts £000 1 Total £000 Shares beneﬁcially held as at 31 December 2 2024 2023 2024 2023 2024 2023 2024 Group Chairman José Viñals 1,293 1,293 57 69 1,350 1,362 45,000 Current INEDs Shir ish Apte 292 287 1 0 293 287 2,000 David Conner 3 254 250 1 1 255 251 10,000 Gay Huey Evans, CBE 4 26 150 0 0 26 150 2,615 Jackie Hunt 188 185 0 3 188 188 2,000 Diane Jurgens 5 125 – 0 – 125 – 8,888 Robin Lawther, CBE 230 225 0 0 230 225 2,000 Maria Ramos 337 332 1 0 338 332 2,000 Phil Rivett 252 247 0 0 252 247 2,128 David Tang 190 185 1 1 191 186 2,000 Carlson Tong 6 70 190 0 0 70 190 2,000 Linda Yueh, CBE 242 219 10 0 252 219 2,000 Lincoln Leong 7 43 – 0 – 43 – 13,369 1 The costs of beneﬁts (and any associated tax costs) are paid by the Group 2 The beneﬁcial interests of Chairman and INEDs, and connected persons in the shares of the Company are set out above. These directors do not have any non-beneﬁcial interests in the Company’s shares. None of these directors used shares as collateral for any loans. No director had either: (i) an interest in the Company’s preference shares or loan stocks of any subsid iary or assoc iated undertaking of the Group; or (i i) any corporate interests in the Company’s ordinary shares. All ﬁgures are as of 31 December 2024 or on the retirement of a director unless otherwise stated 3 David Conner’s fee includes his role on the Combined US Operations Risk Committee. David stepped down from the Board on 30 December 2024 4 Gay Huey Evans stepped down from the Board on 29 February 2024 and we are no longer tracking her shareholding. Her reported fee for 2024 of £26,000 is in respect of the period of 1 January 2024 to 29 February 2024 5 Diane Jurgens was appointed to the Board on 1 March 2024 and Lincoln Leong was appointed to the Board on 2 November 2024 6 Carlson Tong stepped down from the Board on 9 May 2024 and we are no longer tracking his shareholding. His reported fee for 2024 of £70,000 is in respect of the period of 1 January 2024 to 9 May 2024 7 Lincoln Leong’s fee includes his role as an independent non-executive director of Standard Chartered Bank (Hong Kong) Lim ited INEDs’ letters of appointment The INEDs have letters of appointment, which are available for inspect ion at the Group’s reg istered ofﬁce. INEDs are appointed for a period of one year, unless terminated by either party with three months’ notice. Details of the INEDs’ appointments are set out on pages 106 to 108 164 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Directors’ remuneration policy This section sets out our new directors’ remuneration policy in full, which will be put forward to shareholders for a bind ing vote at the 2025 AGM. If approved, the policy will apply from 8 May 2025. The current policy was approved at the AGM held on 4 May 2022 and has applied from that date. See pages 165 to 169 for the full policy that shareholders will be asked to approve. Summary of proposed executive directors’ remuneration policy Fixed remuneration Current policy Proposed changes in policy and why Salary Delivered part in cash paid monthly, and part in shares with 20 per cent released annually over the following ﬁve years. What: Salaries will be sign iﬁcantly reduced and pa id monthly in cash. Why: Remuneration is being rebalanced from ﬁxed pay towards performance – linked variable remuneration to incent iv ise the delivery of sustainable higher returns, and enhance the alignment of executive pay with shareholder experience. Pension For directors who jo ined before 4 May 2022, an annual pension allowance or contribut ion of 10 per cent of salary is payable. For directors who jo ined after 4 May 2022, 10 per cent of the cash element of salary only will be payable. No change Why: Pension will be calculated as 10 per cent of cash salary. The removal of salary shares, will automatically result in a reduction in the pension allowance for the Group CEO. Beneﬁts A range of beneﬁts are provided which support directors to carry out their duties effectively. No change Why: Core beneﬁts continue to be aligned with the wider workforce. Variable remuneration Current policy Proposed changes in policy and why Annual incent ive Maximum opportunity of 88 per cent of salary, awarded in 50 per cent cash and 50 per cent shares subject to holding requirements. Awards are determined by the Committee, based on the assessment of the annual incent ive scorecard, which contains at least 50 per cent weight ing in ﬁnancial measures, and add it ional strateg ic and personal performance measures. What: The maximum annual incent ive opportun ity will be 270 per cent of salary for the CEO and 220 per cent for the GCFO. The weight ing of ﬁnancial measures in the annual scorecard will be increased to at least 60 per cent. Why: Reﬂects the rebalancing of remuneration towards performance-linked, variable pay. Changes to the scorecard reﬂect shareholder feedback. LTIP Maximum opportunity of 132 per cent of salary, with awards granted annually and subject to performance measured over three years. Phased vesting over three to seven years and subject to a one year retention after each vest. Awards are determined by the Committee, based on the assessment of a scorecard, which contains at least 50 per cent weight ing in ﬁnanc ial measures, and addit ional strateg ic measures. What: The maximum LTIP award opportunity will be 490 per cent of salary for the CEO and 370 per cent for the GCFO. The LTIP scorecard will contain ﬁnanc ial measures of at least an 80 per cent weight ing, with the remainder being based on sustainab il ity measures. Why: Reﬂects the rebalancing of remuneration towards performance-linked, variable pay. Changes to the scorecard reﬂect shareholder feedback. Other remuneration Current policy Proposed changes in policy and why Shareholding requirements Executive directors are required to hold a specif ied level of shares expressed as a percentage of salary. During the current policy the requirements have been 250 per cent of salary for the CEO and 200 per cent of salary for the GCFO. The requirement remains in place for two years following cessation of employment. What: The shareholding requirement will increase to 500 per cent of salary for the CEO and 400 per cent of salary for the GCFO. The post-employment requirement will commence when an executive director steps down from the Board, and not when their employment ceases, if later. Why: The new shareholding requirement will exceed the maximum LTIP opportunity as a multiply of salary, further align ing interests of executive directors with shareholders. It is appropriate for the post- employment requirement to apply in the context of services as an executive director. 165 Standard Chartered – Annual Report 2024 Directors’ report Other remuneration Current policy Proposed changes in policy and why Leaver provis ions In-ﬂight LTIP awards are prorated for time served during the performance period when an executive director retires. However, the Committee has the ﬂexib il ity to disapply the proration of LTIP awards on retirement. A set of min imum cr iter ia must be met before the Committee can consider the use of ﬂexib il ity. What: Prorating in-ﬂight LTIP awards for time served remains the default approach. However, the option to disapply proration will be retained only to be considered on the retirement of Bill Winters from the role of CEO, after consider ing the c ircumstances at that time, includ ing Group and ind iv idual performance, and any other relevant informat ion. The min imum cr iter ia have been removed. Why: The Committee consider it appropriate to retain this ﬂexib il ity for Bill, after the very substantial transformation of the Bank that he has overseen during his tenure as CEO and the ongoing impact that Bill’s achievements will have on the Bank. The min imum el ig ib il ity cr iter ia have been removed to reﬂect feedback from some shareholders that they believed the disappl icat ion of proration would automatically apply if these were met. Proposed executive directors’ remuneration full policy The proposed executive directors’ remuneration policy, to be effective from the date of the Group’s AGM on 8 May 2025, for up to three years, is set out below. During the policy term, the Committee may make minor changes to align with regulatory, legal or tax changes, if necessary, without seeking shareholder approval. The remuneration of the Group Chairman, executive directors, senior management and all colleagues was considered in the development of the new policy. Alignment with the wider workforce and with Group-wide remuneration arrangements was crit ical to the approach taken in the development of the new policy, which is designed to reﬂect the Group’s purpose as well as following the princ iples of our Fa ir Pay Charter. During the review and development of the new policy, no ind iv idual partic ipated in decis ions that would impact the determinat ion of the ir own remuneration. Fixed remuneration Salary Purpose and link to strategy • To attract, retain, and develop high-calibre executive directors required to deliver the Group’s strategic prior it ies. • Reﬂects the ind iv iduals’ role, skills and experience, following the Group-wide princ iples wh ich apply to all employees. Operation • Delivered in cash, paid monthly. • Reviewed annually in line with the wider workforce with any changes applying from April. Maximum potential • Increases may be made at the Committee’s discret ion to take account of c ircumstances such as: Increase in scope or responsib il ity; ind iv idual’s development in role; salary increases across the Group; alignment to market-competit ive levels. Pension Purpose and link to strategy • Forms part of a competit ive remunerat ion package and supports executive directors’ long-term retirement savings. Operation • Paid as a cash allowance and/or contribut ion to a deﬁned contr ibut ion scheme. • Pension contribut ions may also be made in lieu of any waived salary or the cash amount of any annual incent ive. Maximum potential • 10 per cent of salary. Beneﬁts Purpose and link to strategy • A local market-competit ive package to support execut ives carrying out their duties effectively. Operation • Beneﬁts may include a cash beneﬁts allowance, car and driver (or other car-related service), private medical insurance, long-term disab il ity cover, life insurance, ﬁnanc ial adv ice and tax preparation and tax return assistance. • Addit ional beneﬁts may also be prov ided where an executive director is relocated or spends a substantial portion of their time in more than one jur isd ict ion for bus iness purposes, includ ing but not l im ited to, relocation, shipp ing and storage, hous ing allowance, education fees and tax and social security costs. • Other beneﬁts may be offered if considered appropriate and reasonable by the Committee. • Executive directors are reimbursed for expenses, such as travel and subsistence, and any associated tax incurred in the performance of their duties. • Directors may be accompanied by their spouse or partner to meetings/events. In exceptional circumstances, the costs (and any associated tax) will be met by the Group. Maximum potential • Set at a level the Committee considers appropriate based on factors includ ing the market and ind iv idual circumstances. 166 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Variable remuneration Annual incent ive Purpose and link to strategy • Incentiv ise performance l inked to the Group’s strategy and aligned to shareholder interests. Operation • Determined based on Group and ind iv idual performance over the preceding ﬁnanc ial year. • Delivered as a combinat ion of cash and shares subject to hold ing requirements. • The Committee may make amendments to accommodate future changes to remuneration regulations relating to deferrals and post-vest retention periods. Maximum potential • The annual incent ive max imum that can be awarded is 270 per cent of salary for the CEO and 220 per cent of salary for the GCFO and can be any amount from zero to the maximum. Performance measures • Determined by the Committee based on an assessment of an annual scorecard contain ing ﬁnancial, strategic and personal performance measures. Financ ial measures w ill comprise at least 60 per cent of the annual scorecard. • The targets, together with an assessment of performance against those targets, will be disclosed retrospectively. • The Committee will review the scorecard annually and may vary the measures, weight ings and targets each year. • Discret ion may be exerc ised by the Committee to ensure that the outcome is a fair and accurate reﬂection of business and ind iv idual performance (but it will not exceed the maximum opportunity). • The overall annual incent ive outcome w ill be subject to a risk and control modif ier, assessed over the year. Long-term incent ive plan (LTIP) Purpose and link to strategy • Incentiv ise performance l inked to the Group’s strategy and aligned to shareholder interests. Operation • Granted annually with performance of the Group and of the ind iv idual considered in determin ing the award level. • Performance assessed over a forward-looking period of at least three years. • Delivered in shares which are subject to deferral and holding periods. • The Committee may make changes to accommodate future changes to remuneration regulations relating to deferrals and post-vest retention periods. • The number of shares awarded in respect of LTIP awards may take into account the current regulatory prohib it ion on div idend equ ivalents (calculated by reference to market consensus div idend y ield) such that the overall value of the award is mainta ined. Maximum potential • The LTIP maximum that can be awarded is 490 per cent of salary for the CEO and 370 per cent of salary for the GCFO and can be any amount from zero to the maximum. Performance measures • May be a mix of ﬁnanc ial measures and other long-term strateg ic measures. • Financ ial measures w ill comprise at least 80 per cent of the performance measures. Weight ings and targets will be set in advance of each grant by the Committee and disclosed prospectively. Performance against those measures will be disclosed retrospectively. • For ﬁnancial measures, the performance outcome w ill be assessed on a slid ing-scale bas is between threshold and maximum with no more than a 25 per cent outcome at threshold performance. • The overall outcome will be subject to a risk and control modif ier, assessed over the performance per iod. Annual incent ive and LTIP operat ion • Annual incent ive awards w ill be made in cash and shares. LTIP awards will be granted as condit ional share awards. • Deferral and vesting of awards are structured so that they comply with prevail ing remunerat ion regulations. • The Committee can, in specif ied c ircumstances, apply malus or clawback to all or part of annual incent ive and/or any LTIP awards. See page 180 for more details. • On the occurrence of corporate events and other reorganisat ion events, the Comm ittee may apply discret ion to adjust the vesting and/or the number of shares underlying an award. 167 Standard Chartered – Annual Report 2024 Directors’ report Shareholding requirements Purpose and link to strategy • To align executive director and shareholder interests. Operation • Executive directors are expected to build and mainta in a sharehold ing, with in ﬁve years from the date of their appointment (or, from the date of any changes to the terms of the shareholding requirement, if later), with a value equivalent to: – CEO: 500 per cent of salary – GCFO: 400 per cent of salary • Shares that count towards the requirement are beneﬁc ially owned shares, vested share awards subject to a retention period and unvested share awards for which performance condit ions have been sat isf ied (on a net-of-tax basis). • Executive directors will have a reasonable time period to build up to this requirement again if it is not met because of a sign iﬁcant share pr ice depreciat ion. • If the requirement is not achieved with in the spec if ied t ime frame, the Committee will determine appropriate actions based on the circumstances that resulted in the requirement not being met. Sharesave Purpose and link to strategy • Provides an opportunity for all employees to invest voluntarily in the Group. Operation • An all-employee plan where partic ipants ( includ ing execut ive directors) are able to open a savings contract to fund the exercise of an option over shares. • Savings per month of between £5 and £500. • The option price is set at a discount of up to 20 per cent of the share price at the date of inv itat ion, or such other discount as may be determined by the Committee. Legacy arrangements Purpose and link to strategy • Honour exist ing comm itments. Operation • Any previous commitments or arrangements entered into with current or former executive directors will be honoured, includ ing remunerat ion arrangements entered into under the previously approved directors’ remuneration policy. External roles Purpose and link to strategy • To encourage self-development and allow for the introduct ion of external ins ight and pract ice. Operation • Executive directors may accept appointments in other organisat ions subject to relevant Board approval. Executive directors are generally lim ited to one non-execut ive directorsh ip in another listed company. Fees may be retained by the executive director. Executive directors’ policy on recruitment The Committee’s approach to recruitment is to attract diverse experience and expertise by paying competit ive remunerat ion that reﬂects our internat ional nature and enables us to attract and reta in key talent from a global marketplace. The policy is summarised below. Fixed remuneration Operation Salary In line with policy Pension In line with policy Beneﬁts In line with policy Variable remuneration Operation Annual incent ive In line with policy LTIP In line with policy Shareholding requirements In line with policy Buy-out awards • The Committee may consider buying out forfeited remuneration or opportunit ies, and/or compensat ing for losses incurred as a result of jo in ing the Group, subject to proof of forfeiture or loss. • Any award will be structured with in the requ irements of the applicable remuneration regulations and will be no more generous overall than the remuneration forfeited in terms of the existence of performance measures, value, tim ing and form of del ivery. • The value of buy-out awards is not included with in the max imum variable remuneration level where it relates to forfeited remuneration from a previous role or employer. Legacy matters • Where a senior executive is promoted to the Board, their exist ing contractual comm itments agreed prior to their appointment may still be honoured in accordance with the terms of the relevant commitment, includ ing vest ing of any pre-exist ing deferred or long-term incent ive awards. 168 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Executive directors’ policy on contracts and loss of ofﬁce Element Operation Notice period • Maximum of 12 months’ notice from the company and the executive director. Payments in lieu of notice • May be paid in lieu of notice if not required to remain in employment for the whole notice period. Garden leave • May be required to work and/or serve a period of garden leave during the notice period. Compensation for loss of ofﬁce in service contracts • Dependent on an ind iv idual’s contract but in any event no more than 12 months’ salary, pension and beneﬁts. • Payable quarterly and subject to mit igat ion if the executive director seeks alternative employment. • Not in addit ion to any payment in lieu of notice or if the ind iv idual remains in employment for the whole notice period. • In the event of a settlement agreement, the Committee may make payments it considers reasonable in settlement of potential legal claims, includ ing potent ial entitlement to compensation in respect of statutory rights under employment protection legislat ion. • The Committee may also include in such payments, reasonable reimbursement of professional fees, such as legal fees and tax advice (and any associated tax), in connection with such arrangements. Career transit ion support may also be provided. Treatment of variable remuneration on terminat ion Operation • Elig ible leaver status w ill generally be given in cases such as death, disab il ity, retirement, and redundancy. Discret ion is applied as to awarding elig ible leaver status in cases of mutual separation. • Elig ible leavers (as determ ined by the Committee) may be elig ible for var iable remuneration although there is no automatic entitlement. • The Committee has discret ion to reduce the ent itlement of an elig ible leaver in line with performance, contribut ion and the c ircumstances of the terminat ion. • On a change of control, the amount is pro-rated for the period of service during the year. The Committee may alter the performance period, measures, and targets to ensure the performance measures remain relevant but challenging. The Committee has the discret ion under the relevant plan rules to determ ine how elig ible leaver status should be appl ied on terminat ion. • For elig ible leavers, deferred awards not subject to long-term performance measures vest in full over the orig inal t imescale and remain subject to the Group’s clawback arrangements. The Committee has discret ion to reduce the level of vest ing. • Awards subject to long-term performance measures will vest, subject to those measures, on a pro rata basis (reﬂecting the proportion of the relevant ﬁnanc ial performance per iod that the executive director has been employed) and remain subject to the Group’s clawback arrangements. • The Committee has the ﬂexib il ity to disapply proration for time served on the vesting of LTIP awards on the retirement of Bill Winters from the role of Group CEO, after consider ing the c ircumstances at that time includ ing: the performance of the Group; B ill’s personal performance; and any other relevant informat ion. – If the ﬂexib il ity is used, the Committee would provide a clear and full disclosure at the time and no LTIP award would be granted in the ﬁnal year of employment. – There would be no addit ional payments in lieu of notice. – If Bill takes up a new role as an executive at a competitor, all unvested awards will lapse. Vesting may be subject to non-solic it and non-compete requ irements. • Awards lapse for executive directors not designated elig ible leavers. • On a change of control, the Committee may allow awards to continue or roll-over in agreement with the acquirer, taking into account the circumstances, and may alter the performance period, measures and targets to ensure the performance measures remain relevant. Post-employment shareholding requirement Purpose and link to strategy • To align executive directors’ interests with the Group’s long-term strategy and the interests of shareholders following employment. Operation • On stepping down as an executive director, ind iv iduals will be required to mainta in the sharehold ing requirement for two years (or, if lower, the actual shareholding on departure). • After the executive director has stepped down, the shareholding requirement will be mainta ined through self-certif icat ion, to the extent it is not met via shares held with in the Group’s employee share plan and nominee accounts. 169 Standard Chartered – Annual Report 2024 Directors’ report Notes to the remuneration policy for executive directors Committee’s judgement and discret ion The Committee has certain operational discret ion that it may exercise when consider ing execut ive directors’ remuneration, includ ing but not l im ited to: • Determin ing whether a leaver is an elig ible leaver under the Group’s share plans and treatment of remunerat ion arrangements. • Amending LTIP performance measures following a corporate event to ensure a fair and consistent assessment of performance. • Decid ing whether to apply malus or clawback to an award. Abil ity for the Comm ittee to amend the policy for emerging and future regulatory requirements The Committee retains the discret ion to make reasonable and proport ionate changes to the policy if they consider this appropriate to respond to changing legal or regulatory requirements or guidel ines. Th is includes the abil ity to make admin istrat ive changes to beneﬁt the operation of the policy and/or to implement such changes ahead of any formal effective date, ensuring timely compliance. Where proposed changes are considered by the Committee to be material, the Group will engage with its major shareholders and any changes would be formally incorporated into the policy when it is next put to shareholders for approval. Chair and independent non-executive directors’ remuneration policy Fees Purpose and link to strategy • Attract a Chair and INEDs who, together with the Board as a whole, have a broad range of skills and experience to determine Group strategy and oversee its implementat ion. Operation • The INEDs are paid fees to chair or be a member of Board committees and for the Deputy Chair and Senior Independent Director roles. • Fees are set at a level which reﬂect the duties, time commitment and contribut ion expected from the Cha ir and INEDs, and are appropriately posit ioned aga inst those in banks and other companies of a sim ilar scale and complexity. • Fees are paid in cash or shares. Post-tax fees may be used to acquire shares. • The Chair and INED fees are reviewed period ically. The Board sets INED fees and the Comm ittee sets the Chair’s fees. The Chair and INEDs recuse themselves from any discuss ion on the ir fees. • INEDs may also receive fees as directors of subsid iar ies of Standard Chartered PLC, to the extent permitted by regulation. • Overall aggregate base fees paid to the Chair and all INEDs will remain with in the l im it stated in the Articles of Associat ion (currently £2 m ill ion per annum). • There are no recovery provis ions or performance measures. Beneﬁts Purpose and link to strategy • Appropriate beneﬁts package to support the Chair and INEDs to carry out their duties effectively. Operation • The Chair is provided with beneﬁts associated with the role, includ ing a car and dr iver and private medical insurance, permanent health insurance and life insurance. Any tax costs associated with these beneﬁts are paid by the Group. Any future Chair based outside of the UK may receive assistance with their relocation consistent with the support offered to ind iv iduals under the Group’s internat ional mob il ity pol ic ies. • The Chair and INEDs are reimbursed for expenses, such as travel and subsistence (and includ ing any associated tax), incurred in the performance of their duties, and may receive tax preparation and tax return assistance. • In exceptional circumstances the Chair and INEDs may be accompanied by their spouse or partner to meetings or events. The costs (and any associated tax) are paid by the Group. Approach on recruitment, service contracts and loss of ofﬁce for Chair or INEDs Service contracts and policy on payment for loss of ofﬁce for the Chair and INEDs Fees and beneﬁts • In line with the Chair and INED remuneration policy Service contracts and loss of ofﬁce • The Chair is provided a notice period of up to 12 months and is entitled to a payment in lieu of notice in respect of any unexpired part of the notice period at the point of terminat ion. • INEDs are appointed for a period of one year unless terminated earlier by either party with three months’ written notice. No entitlement to the payment of fees or provis ion of beneﬁts cont inues beyond terminat ion of the appointment and INEDs are not entitled to any payments for loss of ofﬁce (other than entitlements under contract law, such as a payment in lieu of notice if notice is not served). 170 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Remuneration for the executive directors in 2025 will be in line with our new directors’ remuneration policy, subject to shareholder approval at the May 2025 AGM. Key elements include salary, pension, beneﬁts, an annual incent ive and an LTIP award. See pages 164 to 169 for full details The Committee considered the executive directors’ salaries as part of the overall review of the directors’ remuneration policy. As explained on pages 145 to 147, total remuneration is being rebalanced from ﬁxed pay towards performance-linked variable pay, and as such, salaries are being reduced by 40 per cent for Bill and by 33 per cent for Diego with effect from 1 April 2025 (subject to approval of the directors’ remuneration policy in May 2025). £000 Bill Winters Diego De Giorg i 2025 2024 % change 2025 2024 % change Salary 1,500 2,517 (40%) 1,100 1,650 (33%) of which cash 1,500 1,258 19% 1,100 1,100 - of which shares - 1,259 (100%) - 550 (100%) Pension 150 252 (40%) 110 110 - Total ﬁxed pay 1,650 2,769 (40%) 1,210 1,760 (31%) Illustration of applicat ion of 2025 remunerat ion policy The charts below illustrate potential directors’ remuneration outcomes based on our new policy. These illustrate four performance scenarios and the percentages in each bar show the remuneration provided by each pay element. 2024 single ﬁgures of remuneration for Bill and Diego and the 2023 single ﬁgure for Bill are also shown. Executive director remuneration (£000) Bill Winters 2,000 0 4,000 6,000 8,000 10,000 16,000 14,000 12,000 20,000 18,000 Fixed remuneration Annual incent ive LTIP Min imum 1,949 100% On-target 7,649 25% 27% 48% Maximum 13,349 15% 30% 55% 17,024 11% 24% 65% 2023 single ﬁgure 2024 single ﬁgure 2024 single ﬁgure 7,309 42% 20% 38% 10,656 29% 14% 57% Maximum + 50% share price increase Diego De Giorg i Min imum 1,271 100% On-target 4,516 28% 27% 45% Maximum 7,761 16% 31% 53% 9,796 2,769 13% 65% 35% 25% 62% Maximum + 50% share price increase £000 Salary Beneﬁts Pension Total Fixed remuneration Consists of salary and pension (as at 1 April 2025) and beneﬁts (received in 2024) Bill Winters 1,500 299 150 1,949 Diego De Giorg i 1,100 61 110 1,271 Min imum Bill Winters Diego De Giorg i Target % outcome Maximum % outcome % of salary Target % of salary Max % of salary Target % of salary Max Annual incent ive No annual incent ive is awarded 50% 100% 135% 270% 110% 220% LTIP award No LTIP award vests 50% 100% 245% 490% 185% 370% 2025 policy implementat ion for d irectors 171 Standard Chartered – Annual Report 2024 Directors’ report 2025 annual incent ive scorecard Our annual incent ive scorecard reﬂects our strateg ic prior it ies. Targets are set annually by the Committee based on the Group’s annual ﬁnancial plans and strateg ic prior it ies. Targets and performance achieved will be disclosed retrospectively in the 2025 Annual Report due to commercial sensit iv ity. Financ ial measures make up 60 per cent of the scorecard. The Comm ittee assesses strategic and personal measures using a quantitat ive and qual itat ive framework. The overall outcome w ill be subject to a risk and control modif ier, assessed over the year. 2025 scorecard – ﬁnancial measures Measure Weight ing Target Income 1 20% Targets to be disclosed retrospectively Costs 20% RoTE 2 with a CET1 3 underpin of the higher of 13% or the min imum regulatory requ irement 20% 1 The Group’s reported 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 sign iﬁcant or mater ial in the context of the Group’s normal business earnings for the period and items which management and investors would ordinar ily ident ify separately when assess ing underlying performance period by period 2 Underlying RoTE represents the ratio of the current year’s underlying proﬁt attributable to ordinary shareholders plus fair value on other comprehensive income equity movement relating to Ventures segment to the weighted average tangible equity, being ordinary shareholders’ equity less the intang ible assets for the reporting period. Underlying RoTE normally excludes material regulatory ﬁnes and certain other adjustments but, for remuneration purposes, this would be subject to review by the Committee 3 The CET1 underpin will be set at the higher of 13 per cent or the min imum regulatory level as at 31 December 2025. In add it ion, the Comm ittee has the discret ion to take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced and implemented after the start of the performance period 2025 scorecard – strategic measures Clients (Network, Afﬂuent) Target • Deliver cross-border income growth in CIB • Grow Net New Money from new and exist ing Afﬂuent cl ients Weight ing – 10% Sustainab il ity Target • Grow sustainable ﬁnance revenue • Reduce emiss ions from our own operat ions (scope 1 and 2 emiss ions) to net zero by the end of 2025 Weight ing – 10% Productiv ity and transformat ion Target • Execute on our most crit ical transformat ion programmes • Execute on our Fit For Growth object ives to s imply, standardise, and dig it ise the Bank Weight ing – 5% People and culture Target • Delivery of our commitment to have 35 per cent females in senior leadership posit ions, at a global level, by 2025 1 • Improve our ‘culture of inclus ion’ score ( internal index) Weight ing – 5% 1 Subject to local legal requirements 2025 scorecard – personal performance measures Bill – performance goals Target • Support and ensure a smooth transit ion of the Group Cha ir, and continue to develop the senior internal succession pool. • Lead and support delivery of the strategy through relentless execution under a strong risk and controls framework, to produce higher and sustained proﬁtable growth. • Continue to advance internal transformation, ensuring the Bank progresses and delivers key change management in it iat ives, includ ing F it for Growth. • Promote and develop an innovat ion culture throughout the Bank, includ ing in products and services, increas ing connect iv ity between Ventures and the rest of the Bank. • Continue to develop and embed an ambit ious, h igh performance culture, while retain ing the best of the Bank’s tradit ional culture. Weight ing – 10% 172 Standard Chartered – Annual Report 2024 Directors’ report Directors’ remuneration report Diego – performance goals Target • Strategic focus: Deliver our sharpened focus on cross-border corporate and investment banking business and on wealth management for Afﬂuent customers • Business performance: Support business pursuit of sustainably higher returns and foster a high performance culture • Transformation and simpl iﬁcation: Execute the Group transformation agenda while mainta in ing necessary cost disc ipl ine • Process and controls: Lead implementat ion of F inance and Group-wide in it iat ives a imed at business needs and regulatory requirements Weight ing – 10% LTIP awards for the executive directors to be granted in 2025 Award as % of salary Award value on grant (£) Award value on vesting (£) Bill Winters 490% 7,350,000 To be determined based on the level of performance achieved at the end of the three-year period against the performance measures and the future share price. Diego De Giorg i 370% 4,070,000 The RoTE target range for the awards is increased to 11.5 to 14.5 per cent, versus 10 to 13 per cent for the 2024-26 awards, reﬂecting the progress in RoTE achieved in 2024 and our 2026 target of approaching 13 per cent. The overall outcome will be subject to a risk and control modif ier, assessed over the performance per iod. Peer group for the relative TSR measure in the 2025-27 LTIP The peer group of companies selected for the relative TSR performance calculation are those with generally comparable business activ it ies, size or geographic spread to Standard Chartered or with which we compete for investor funds and talent. The peer group has been streamlined to reﬂect companies who we may compete with for investment, and now consists of 13 peers. Banco Santander, Bank of America, Bank of East Asia, KB Financ ial and Soc iété Générale are no longer considered to be comparable peers as they have sign iﬁcantly d ifferent purpose, strategies and performance proﬁles. China Merchants Bank has been added to the peer group. Relative TSR will be assessed over a calendar three-year period, changed from the current approach of three years from grant (typically in March). This will simpl ify the performance outcome process, w ith all performance measures being assessed over the same time period. TSR is measured in GBP for each company and the data will be averaged over a three-month period at the start and end of the three-year measurement period which starts from the 1 January of the year of grant. The averaging period is being changed from one month to reduce the impact of share price volatil ity. Barclays Deutsche Bank Oversea Chinese Banking Corporation BNP Paribas HSBC Standard Bank Cit i ICICI UBS China Merchants Bank JPMorgan Chase United Overseas Bank DBS Group Financ ial measures for 2025-27 LTIP awards Measure Weight ing Min imum performance (25%) Between min imum and maximum performance Maximum performance (100%) RoTE 1 in 2027 with a CET1 2 of the higher of 13% or the min imum Regulatory requirement 40% 11.5% Straight-line assessment between min imum and maximum 14.5% Relative TSR performance against peer group 40% Median Straight-line assessment between peer companies posit ioned immed iately above and below the Group Upper quartile 1 Underlying RoTE represents the ratio of the current year’s underlying proﬁt attributable to ordinary shareholders plus fair value on other comprehensive income equity movement relating to Ventures segment to the weighted average tangible equity, being ordinary shareholders’ equity less the intang ible assets for the reporting period. Underlying RoTE normally excludes material regulatory ﬁnes and certain other adjustments but, for remuneration purposes, this would be subject to review by the Committee 2 The CET1 underpin will be set at the higher of 13 per cent or the min imum regulatory level as of 31 December 2027. In add it ion, the Comm ittee has the discret ion to take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced and implemented after the start of the performance period, for example in relation to Basel IV 173 Standard Chartered – Annual Report 2024 Directors’ report Non-ﬁnancial measures for 2025-27 LTIP awards Sustainab il ity • Progress towards our $300 bill ion susta inable ﬁnance mobil isat ion target. • Net zero sector decarbonisat ion: – Monitor ing of 12 net zero h igh carbon sectors, being assessed on annual year-on-year reductions. See pages 78 to 88 for further details. – Outcome based on the number of sectors reducing emiss ions intens ity. Weight ing – 20% INED fees The Board regularly reviews the fee levels, consider ing market data and the dut ies, time commitment and contribut ion expected for the PLC Board and, where appropriate, subsid iary boards. Cons ider ing the increas ing demands made of our INEDs, the Board determined an increase in INED basic fees of £3,000 to £118,000 to be appropriate. The revised fees are effective from 1 January 2025. The Chairman and the INEDs are elig ible for beneﬁts in line with the directors’ remuneration policy. Neither the Chairman or INEDs receive any performance-related remuneration. Our Chair and independent non-executive directors’ remuneration policy is on page 169 of this report and on our website at sc.com Role Annual fee Group Chairman 1 £1,293,000 Senior Independent Director £45,000 Independent Non-Executive Director £118,000 Committee Member fee Chair fee Audit, Board Risk, Remuneration £40,000 £80,000 Culture and Sustainab il ity £35,000 £70,000 Governance and Nominat ion £17,000 Nil 1 The Group Chairman receives a stand-alone fee which is inclus ive of all serv ices (includ ing Board and Comm ittee responsib il it ies). The Group does not currently util ise the role of Deputy Cha irman and does not plan to do so 174 Standard Chartered – Annual Report 2024 Directors’ report Addit ional remunerat ion disclosures Addit ional remunerat ion disclosures The following disclosures provide further informat ion and context on execut ive director and wider workforce remuneration as required by the UK directors’ remuneration report regulations and the Stock Exchange of Hong Kong. The relationsh ip between the remunerat ion of the Group CEO and all UK employees Ratio of the total remuneration of the CEO to that of the UK lower quartile, median and upper quartile employees Year Method CEO UK employee – £000 Pay ratio £000 P25 P50 P75 P25 P50 P75 2024 A 10,656 113 164 247 94:1 65:1 43:1 2023 A 7,309 110 162 247 66:1 45:1 30:1 2022 A 6,408 95 145 228 67:1 44:1 28:1 2021 A 4,740 92 139 215 52:1 34:1 22:1 2020 A 3,926 84 128 199 46:1 31:1 20:1 2019 A 5,360 83 128 212 65:1 42:1 25:1 2018 A 6,287 78 124 208 80:1 51:1 30:1 2017 A 4,683 76 121 203 61:1 39:1 23:1 The ratio will depend materially on yearly LTIP outcomes for the CEO, and accordingly may ﬂuctuate. The Committee also discloses ratios using salary and salary plus annual incent ive, as most UK employees do not typ ically receive LTIP awards. Addit ional rat ios of pay based on salary and salary plus annual incent ive Salary CEO UK employee – £000 Pay ratio £000 P25 P50 P75 P25 P50 P75 2024 2,517 85 116 156 30:1 22:1 16:1 2023 2,496 78 103 149 32:1 24:1 17:1 2022 2,418 72 87 138 34:1 28:1 18:1 2021 2,370 68 100 136 35:1 24:1 17:1 2020 2,370 63 93 116 38:1 25:1 20:1 2019 2,353 65 90 128 36:1 26:1 18:1 2018 2,300 59 86 142 39:1 27:1 16:1 2017 2,300 55 81 124 42:1 28:1 19:1 Salary plus annual incent ive CEO UK employee – £000 Pay ratio £000 P25 P50 P75 P25 P50 P75 2024 3,979 98 141 217 41:1 28:1 18:1 2023 3,958 96 138 220 41:1 29:1 18:1 2022 3,917 84 123 202 47:1 32:1 19:1 2021 3,559 79 122 186 45:1 29:1 19:1 2020 2,756 74 104 175 37:1 26:1 16:1 2019 3,604 73 109 187 49:1 33:1 19:1 2018 3,691 72 105 183 52:1 35:1 20:1 2017 3,978 69 103 182 58:1 39:1 22:1 The 2024 total remuneration ratios have increased compared with previous years, driven princ ipally by the 2022-24 LTIP projected outcome for the CEO, reﬂecting the Group’s consistent, strong performance over the last three years and the sign iﬁcant increase in our share price over recent months. CEO pay ratio methodology • Pay ratios are calculated using Option A methodology, aligned with investor guidance. • Employee pay data is based on FTE UK employees as of 31 December for the relevant year, excluding leavers, jo iners, and transfers in/out of the UK during the year to ensure a like-for-like comparison. Total remuneration is calculated in line with the single ﬁgure methodology and insured beneﬁts data is based on notional premiums. No other adjustments or assumptions have been made. • CEO pay is the single ﬁgure of remuneration for 2024 and is restated for 2023 to reﬂect the ﬁnal 2021-23 LTIP performance outcome assessed in March 2024. The 2024 ratio will be restated in the 2025 report to reﬂect the ﬁnal 2022-24 LTIP performance outcome for elig ible employees and the CEO. • The Committee considered the data for the three ind iv iduals ident iﬁed at the quart iles for 2024 and believes it fairly reﬂects UK employee pay. They were full-time employees and received remuneration in line with policy, without exceptional pay. • Our LTIP links remuneration to the achievement of long-term strategy and reinforces alignment with shareholder interests. Partic ipat ion is typically senior employees who directly inﬂuence the award’s performance targets. The ident iﬁed quart ile employees are not LTIP partic ipants. 175 Standard Chartered – Annual Report 2024 Directors’ report Group performance versus the CEO’s remuneration The graph below shows the Group’s TSR performance on a cumulative basis over the past 10 years alongside that of the FTSE 100 and peer banks. The graph also shows CEO remuneration based on the single ﬁgure over the 10 years ended 31 December 2024 for comparison. The FTSE 100 provides a broad comparison group against which shareholders may measure their relative returns. 0 2 4 6 8 10 12 Jan 25 Jan 24 Jan 23 Jan 22 Jan 21 Jan 20 Jan 19 Jan 18 Jan 17 Jan 16 Jan 16 0 50 100 150 200 250 Value of £100 invested on 31 December 2013 CEO total remuneration (£ mill ion) CEO single ﬁgure of remuneration (Peter Sands) CEO single ﬁgure of remuneration (Bill Winters) Standard Chartered FTSE 100 Comparator median The table below shows the single ﬁgure of total remuneration for the CEO since 2015 and the variable remuneration delivered as a percentage of maximum opportunity. Salary PS BW BW BW BW BW BW BW BW BW BW 2015 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Single ﬁgure of total remuneration £000 1,290 8,399 3,392 4,683 6,287 5,360 3,926 4,740 6,408 7,309 10,656 Annual incent ive as percentage of maximum opportunity 0% 0% 45% 76% 63% 55% 18.5% 57% 70% 66% 66% Vesting of LTIP awards as a percentage of maximum 1 0% – – – 27% 38% 26% 23% 37% 66% 88% 1 The 2024 projected LTIP outcome of 88 per cent is subject to change until the ﬁnal assessment of TSR performance in March 2025. • Bill’s single ﬁgure of total remuneration in 2015 includes his buyout award of £6.5 mill ion to compensate for the forfe iture of share interests on jo in ing from his previous employment • The 2023 single ﬁgure for Bill has been restated based on the actual performance outcome and share price when the 2021-23 LTIP awards started vesting in March 2024. Annual percentage change in remuneration of directors and UK employees To comply with the Shareholder Rights Direct ive, we prov ide a comparison of the changes in remuneration of PLC Board directors against average full-time equivalent UK employee remuneration (using UK employees as of 31 December for the relevant year, excluding in-year jo iners and internat ional transfers). UK employee remunerat ion is calculated on a mean basis for consistency year-on-year. INEDs receive lim ited taxable beneﬁts and small value changes may lead to year-on- year ﬂuctuations. Salary % change Taxable beneﬁts % change Annual incent ive % change 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 CEO Bill Winters 0.8 3.2 2.0 0.0 0.7 3.9 (3.0) 79.8 (26.5) (2.9) 0.0 (2.5) 26.1 208.1 (69.2) GCFO Diego De Giorg i – – – – – – – – – – – – – – – Andy Halford (former GCF0) – 3.2 2.0 0.7 3.7 – (17.0) 23.9 (5.6) 30.2 – (2.6) 24.3 208.9 (68.2) Workforce average FTE UK employee 2.9 10.4 3.3 3.1 3.8 (1.2) 2.2 (7.0) (2.0) 2.9 11.5 0.8 14.3 38.2 (22.1) Group Chairman José Viñals 0.0 3.4 0.0 0.0 0.0 (17.5) 53.2 170.2 (61.5) (11.7) Shir ish Apte 1.7 – – – – – – – – – David Conner 1 1.6 7.5 (8.8) (6.7) (0.6) 0.0 0.0 0.0 5.9 (57.5) Gay Huey Evans 1 – (3.2) (22.5) 0.0 0.0 – (100.0) 100.0 (100.0) 233.9 Jackie Hunt 1.5 – – – – – – – – – Diane Jurgens 1 – – – – – – – – – – Robin Lawther 2.2 – – – – – – – – – Lincoln Leong 1 – – – – – – – – – – Maria Ramos 3 1.5 38.8 25.9 – – 100.0 0.0 0.0 – – Phil Rivett 2.0 5.7 3.9 – – 0.0 0.0 0.0 – – David Tang 2.7 8.8 0.0 18.3 – 55.3 0.0 0.0 (82.3) – Carlson Tong 1 – 4.1 (11.0) 0.0 – – 0.0 0.0 (100.0) – Linda Yueh 10.4 – – – – – – – – – 1 In 2024, Gay Huey Evans, Carlson Tong and David Conner stepped down from the Board on 29 February, 9 May and 30 December respectively. Diane Jurgens and Lincoln Leong were appointed to the Board on 1 March and 2 November 2024 respectively. See pages 156 and 163 for the CEO, GCFO, Group Chairman and INEDs data the changes relates to Not applicable as these ind iv iduals are not elig ible for annual incent ive awards. 176 Standard Chartered – Annual Report 2024 Directors’ report Addit ional remunerat ion disclosures Scheme interests awarded, exercised and lapsed during the year Employees, includ ing execut ive directors, are not permitted to engage in any personal investment strategies with regards to their Company shares, includ ing hedg ing against the share price of Company shares. The main features of the outstanding shares and awards are summarised below: Award 1,2 Performance measures Performance outcome (100%) Accrues notional div idends? 1 Delivery 2017–19 LTIP 33% RoE 3 33% TSR 33% Strategic Yes • Tranche 1: 50% • Tranches 2-5: 12.5% 2018–20 LTIP Yes • 5 equal tranches 2019–21 LTIP 33% RoTE 33% TSR 33% Strategic No • 5 equal tranches 2020–22 LTIP No • 5 equal tranches 2021–23 LTIP 30% RoTE 30% TSR 15% Sustainab il ity 25% Strategic No • 5 equal tranches 2022–24 LTIP 4 No • 5 equal tranches 2023–25 LTIP To be assessed at the end of 2025 No • 5 equal tranches 2024–26 LTIP 30% RoTE 30% TSR 25% Sustainab il ity 15% Strategic To be assessed at the end of 2026 No • 5 equal tranches 1. Awards are delivered in ﬁve equal tranches. 2. 2017 – 19 LTIP award may receive div idend equ ivalent shares based on div idends declared between grant and vest. From 1 January 2017 remunerat ion regulations for European banks prohib ited the award of d iv idend equ ivalent shares. Therefore, the number of shares awarded in respect of the LTIP awards granted after this date took into account the lack of div idend equ ivalents (calculated by reference to market consensus div idend y ield) such that the overall value of the award was mainta ined. 3. Return on equity. 4. The performance outcome for the 2022-24 LTIP is a projected outcome. The ﬁnal relative TSR outcome will be assessed in March 2025. Scheme interests awarded during 2024 Awards were granted to Bill and Diego under the 2024 – 26 LTIP on 12 March 2024. Performance measures apply to 2024 – 26 LTIP awards. Type of interest awarded Basis on which award is made Number of shares 1 Award face value (£) 2 Award outcome achievable for min imum performance Performance period end 3 Bill Winters LTIP – condit ional rights % of salary 616,378 4,068,095 25% 12 March 2027 Diego De Giorg i LTIP – condit ional rights % of salary 404,062 2,666,809 25% 12 March 2027 1. The number of shares awarded in respect of the LTIP took account of the lack of div idend equ ivalents (calculated by reference to market consensus div idend yield) such that the overall market value of the award is mainta ined. 2. The award face value is calculated by multiply ing the number of shares awarded by the share award pr ice of £6.60. 3. Details of the LTIP performance measures can be found on page 179. 38% 26% 23% 37% 57% 88% 177 Standard Chartered – Annual Report 2024 Directors’ report Change in interests during the period 1 January to 31 December 2024 (audited) Bill Winters 1 Date of grant Share award price (£) As at 1 January Awarded Div idends awarded 2 Vested 3,4, Lapsed As at 31 December Performance period end Vesting date 2017 – 19 LTIP 13 Mar 2017 7.450 45,049 – 6,127 51,176 – – 13 Mar 2020 13 Mar 2024 2018 – 20 LTIP 9 Mar 2018 7.782 28,178 – – 28,178 – – 9 Mar 2021 9 Mar 2024 28,179 – – – – 28,179 9 Mar 2025 2019 – 21 LTIP 11 Mar 2019 6.105 30,604 – – 30,604 – – 11 Mar 2022 11 Mar 2024 30,604 – – – – 30,604 11 Mar 2025 30,605 – – – – 30,605 11 Mar 2026 2020 – 22 LTIP 9 Mar 2020 5.196 59,282 – – 59,282 – – 9 Mar 2023 9 Mar 2024 59,282 – – – – 59,282 9 Mar 2025 59,282 – – – – 59,282 9 Mar 2026 59,282 – – – – 59,282 9 Mar 2027 2021 – 23 LTIP 15 Mar 2021 4.901 150,621 – – 85,853 64,768 – 15 Mar 2024 15 Mar 2024 150,621 – – – 64,768 85,853 15 Mar 2025 150,621 – – – 64,768 85,853 15 Mar 2026 150,621 – – – 64,768 85,853 15 Mar 2027 150,621 – – – 64,768 85,853 15 Mar 2028 2022 – 24 LTIP 14 Mar 2022 4.876 151,386 – – – – 151,386 14 Mar 2025 14 Mar 2025 151,386 – – – – 151,386 14 Mar 2026 151,386 – – – – 151,386 14 Mar 2027 151,386 – – – – 151,386 14 Mar 2028 151,388 – – – – 151,388 14 Mar 2029 2023 – 25 LTIP 13 Mar 2023 7.398 101,209 – – – – 101,209 13 Mar 2026 13 Mar 2026 101,209 – – – – 101,209 13 Mar 2027 101,209 – – – – 101,209 13 Mar 2028 101,209 – – – – 101,209 13 Mar 2029 101,209 – – – – 101,209 13 Mar 2030 2024 – 26 LTIP 12 Mar 2024 6.600 – 123,275 – – – 123,275 12 Mar 2027 12 Mar 2027 – 123,275 – – – 123,275 12 Mar 2028 – 123,275 – – – 123,275 12 Mar 2029 – 123,275 – – – 123,275 12 Mar 2030 – 123,278 – – – 123,278 12 Mar 2031 Diego De Giorg i 1 Date of grant Share award price (£) As at 1 January Awarded Div idends awarded 2 Vested 3,4 Lapsed As at 31 December Performance period end Vesting date 2024 – 26 LTIP 12 Mar 2024 6.600 – 80,812 – – – 80,812 12 Mar 2027 12 Mar 2027 – 80,812 – – – 80,812 12 Mar 2028 – 80,812 – – – 80,812 12 Mar 2029 – 80,812 – – – 80,812 12 Mar 2030 – 80,814 – – – 80,814 12 Mar 2031 1 The unvested LTIP awards held by Bill and Diego are condit ional r ights. They do not have to pay for these awards. Shares are delivered on vesting or as soon as practicable thereafter. 2 Div idend equ ivalent shares may be awarded on vesting for awards granted prior to 1 January 2018. On 31 March 2020, Standard Chartered announced that in response to the request from the PRA and as a consequence of the unprecedented challenges facing the world due to the COVID-19 pandemic, the Board had decided to withdraw the recommendation to pay a ﬁnal div idend for 2019. D iv idend equ ivalent shares allocated to the 2017 – 19 awards vesting in 2024 did not include any shares relating to the cancelled div idend. 3 Shares (before tax) were delivered to Bill from the vesting element of LTIP awards. The closing share price on the day before the shares were delivered were as follows: • 13 March 2024: Shares in respect of the 2017 – 19 LTIP. Previous day closing share price: £6.698 • 11 March 2024: Shares in respect of the 2018 – 20 LTIP, 2019-21 LTIP and 2020-22 LTIP. Previous day closing share price: £6.558 • 19 March 2024: Shares in respect of the 2021 – 23 LTIP. Previous day closing share price: £6.502. 4 The weighted average closing price for Bill’s awards exercised during the period was £6.567. As at 31 December 2024, none of the directors had registered an interest or short posit ion in the shares, underlying shares or debentures of the Company or any of its associated corporations that was required to be recorded pursuant to Section 352 of the Hong Kong Securit ies and Futures Ord inance, or as otherwise notif ied to the Company and the Hong Kong Stock Exchange pursuant to the Model Code for Securit ies Transact ions by Directors of Listed Issuers. See page 359 for details of share plan dilut ion l im its 178 Standard Chartered – Annual Report 2024 Directors’ report Addit ional remunerat ion disclosures Executive directors’ shareholdings and share interests includ ing share awards (aud ited) Shares that count towards the executive director shareholding requirements are beneﬁc ially owned shares, includ ing shares subject to a retention period, and unvested share awards for which performance condit ions have been sat isf ied (on a net of tax basis). As of 31 December 2024, Bill sign iﬁcantly exceeded h is shareholding requirement and Diego is continu ing to bu ild up his requirement. Andy Halford sign iﬁcantly exceeded h is shareholding requirement when he retired from the Company on 31 August 2024. He is subject to a two year post-employment shareholding requirement of 200 per cent of his salary. His shareholding requirement will be monitored through self-certif icat ion, to the extent it is not met via shares held with in the Group’s employee share plans and nominee accounts. Shares purchased voluntarily from his own funds are equivalent to 122 per cent of salary for Bill. No shares were purchased voluntarily in 2024. The following chart and table summarise the executive directors’ shareholdings and share interests. Shares held beneﬁcially Bill Winters Diego De Giorg i 0% 400% 800% 1,200% 1,400% Unvested share awards not subject to performance measures (net of tax) Shareholding requirement 200% 600% 1,000% 1148% 127% 43% Shares held beneﬁcially 1,2,3 Unvested share awards not subject to performance measures (net of tax) 4 Total shares counting towards shareholding requirement Shareholding requirement Salary Value of shares counting towards shareholding requirement as a percentage of salary Unvested share awards subject to performance measures (before tax) Bill Winters 2,922,955 323,640 3,246,595 250% salary £2,517,000 1,275% 1,879,355 Diego De Giorg i 71,011 - 71,011 200% salary £1,650,000 43% 404,062 Post-employment shareholding requirement Relevant salary Andy Halford 6 764,715 232,172 996,887 200% salary £1,609,000 612% 807,363 1 All ﬁgures are as of 31 December 2024 unless stated otherwise. The closing share price on 31 December 2024 was £9.886. No director had either: (i) an interest in Standard Chartered PLC’s preference shares or loan stocks of any subsid iary or assoc iated undertaking of the Group; or (i i) any corporate interested in Standard Chartered PLC’s ordinary shares. 2 The beneﬁcial interests of directors and connected persons in the ordinary shares of the Company are set out above. The executive directors do not have any non-beneﬁcial interest in the Company’s shares. Neither of the executive directors used ordinary shares as collateral for any loans. 3 The salary and shares held beneﬁcially include shares awarded to deliver the executive directors’ salary shares. 4 In March 2024, the ﬁnal assessment of the 2021-23 LTIP award resulted in a 57 per cent outcome due to achievement against RoTE and strategic measures. This award is no longer subject to performance measures and is included here. The remain ing 43 per cent of the award lapsed. 5 As Bill, Andy and Diego are UK taxpayers, it is assumed that no income tax or National insurance contribut ions w ill apply to Sharesave (as Sharesave is a UK tax qualif ied share plan) and 47 per cent tax w ill apply to other unvested share awards based on current rates (marginal combined PAYE rate of income tax at 45 per cent and employee National Insurance contribut ions at 2 per cent). 6 Under the current directors’ remuneration policy, Andy Halford is required to mainta in h is 200 per cent of salary shareholding requirement for two years following his cessation of employment. 179 Standard Chartered – Annual Report 2024 Directors’ report Histor ical LTIP awards The current projected outcome for in-ﬂight LTIP awards from the 2023 and 2024 performance years based on current performance as at 31 December 2024 is set out in the tables below. Current posit ion on the 2023 – 25 LTIP award: projected part ial performance outcome Measure Weight ing Min imum (25%) Maximum (100%) 2023 – 25 LTIP assessment as of 31 December 2024 RoTE 1 in 2025 with a CET1 2 underpin of the higher of 13% or the min imum regulatory requ irement 30% 10% 12.5% RoTE between threshold and maximum: ind icat ive partial outcome Relative TSR performance against peer group 30% Median Upper quartile TSR posit ioned below the median: ind icat ive zero outcome Sustainab il ity 15% Targets set for sustainab il ity measures linked to the business strategy Performance tracking above target: ind icat ive partial outcome Other strategic measures 25% Targets set for strategic measures linked to the business strategy Performance tracking above target: ind icat ive partial outcome 1 Underlying RoTE represents the ratio of the current year’s underlying operating proﬁt attributable to ordinary shareholders to the weighted average ordinary shareholders’ equity less the average goodwill and intang ibles for the report ing period. Underlying RoTE normally excludes regulatory ﬁnes and certain other adjustments but, for remuneration purposes, such adjustments are subject to review by the Committee. 2 The CET1 underpin will be set at the higher of 13 per cent or the min imum regulatory level as at 31 December 2025. In add it ion, the Comm ittee has the discret ion to take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced and implemented after the start of the performance period. Current posit ion on the 2024 – 26 LTIP award: projected part ial performance outcome Measure Weight ing Min imum (25%) Maximum (100%) 2024 – 26 LTIP assessment as of 31 December 2024 RoTE 1 in 2026 with a CET1 2 underpin of the higher of 13% or the min imum regulatory requ irement 30% 10% 13% RoTE above maximum: ind icat ive full outcome Relative TSR performance against peer group 30% Median Upper quartile TSR posit ioned above upper quartile: ind icat ive full outcome Sustainab il ity 25% Targets set for sustainab il ity measures linked to the business strategy Performance tracking on target: ind icat ive partial outcome Other strategic measures 15% Targets set for strategic measures linked to the business strategy Performance tracking on target: ind icat ive partial outcome 1 Underlying RoTE represents the ratio of the current year’s underlying operating proﬁt attributable to ordinary shareholders to the weighted average ordinary shareholders’ equity less the average goodwill and intang ibles for the report ing period. Underlying RoTE normally excludes regulatory ﬁnes and certain other adjustments but, for remuneration purposes, such adjustments are subject to review by the Committee. 2 The CET1 underpin will be set at the higher of 13 per cent or the min imum regulatory level as of 31 December 2026. In add it ion, the Comm ittee has the discret ion to take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced and implemented after the start of the performance period, for example in relation to Basel IV. The Committee assesses the outcome value of LTIP awards on vesting and has the ﬂexib il ity to adjust if the formulaic outcome is not considered to be an appropriate reﬂection of the performance achieved and to avoid windfall gains. 180 Standard Chartered – Annual Report 2024 Directors’ report Addit ional remunerat ion disclosures Allocation of the Group’s earnings between stakeholders When consider ing Group var iable remuneration, the Committee takes account of shareholders’ concerns about relative expenditure on pay and determines the allocation of earnings to expenditure on remuneration carefully and has approached this allocation in a disc ipl ined way. The amount of corporate tax, includ ing the bank levy, is included in the chart because it is a sign iﬁcant payment and illustrates the Group’s contribut ion through the tax system. Staff costs 2024 $mill ion 2023 0% 10% 20% 30% 40% 50% 60% 70% 100% Corporate taxation includ ing levy Paid to shareholders in div idends and buybacks 80% 90% 8,510 2,062 3,280 8,256 1,742 2,568 Approach to risk adjustment Risk adjustment What and how? When? Collective adjustments • At a collective level, the Group annual scorecard and LTIP performance criter ia include risk and control measures. • In addit ion, the Comm ittee carries out a detailed review of all risk, control and conduct matters includ ing ongo ing invest igat ions and any matters raised by regulators, and may use its discret ion to adjust remuneration to reﬂect matters not adequately captured by the scorecards. • Material restatement of the Group’s ﬁnanc ials. • Sign iﬁcant fa ilure in risk management. • Discovery of endemic problems in ﬁnanc ial reporting. • Financ ial losses, due to a mater ial breach of regulatory guidel ines. • The exercise of regulatory or government action to recapital ise the Group follow ing material ﬁnancial losses. Indiv idual adjustments • Indiv idual r isk adjustments to variable remuneration are considered based on the material ity of the issue. • At an ind iv idual level, risk adjustments can be applied through the reduction or forfeiture of the value of current year variable remuneration or the applicat ion of malus or clawback to unpa id or paid variable remuneration as appropriate, at the Committee’s discret ion. • Deemed to have: (i) caused in full or in part a material loss for the Group as a result of reckless, negligent or wilful actions, or (i i) exh ib ited inappropr iate behav iours, or (i i i) applied a lack of appropriate supervis ion and due d il igence. • The ind iv idual failed to meet appropriate standards of ﬁtness and propriety. Our Pillar 3 remuneration disclosures can be viewed in our 2023 Pillar 3 Report at sc.com Remuneration of the ﬁve-highest paid ind iv iduals and the remuneration of senior management In line with the requirements of The Stock Exchange of Hong Kong Lim ited, the follow ing table sets out, on an aggregate basis, the annual remuneration of: (i) the ﬁve highest-paid employees; and (i i) sen ior management for the year ended 31 December 2024. Components of remuneration Five highest paid 1 $000 Senior management 2 $000 Salary, cash allowances and beneﬁts in kind 15,630 35,053 Pension contribut ions 630 1,396 Variable remuneration awards paid or receivable 39,115 60,720 Payments made on appointment – 99 Remuneration for loss of ofﬁce (contractual or other) – 2,982 Other – – Total 55,375 100,250 Total HKD equivalent 432,256 782,551 1 The ﬁve highest paid ind iv iduals include Bill Winters. 2 Senior management comprises the executive directors and the members of the Group Management Team at any point during 2024. 181 Standard Chartered – Annual Report 2024 Directors’ report Share award movements for the ﬁve highest-paid ind iv iduals for the year to 31 December 2024 1 LTIP 2 Deferred shares 2 Sharesave Weighted average Sharesave exercise price (£) Outstanding at 1 January 2024 2,923,473 2,617,126 2,126 4.23 Granted 3,4,5 1,130,565 962,399 1,536 – Lapsed (409,611) – – – Vested/Exercised (300,014) (716,613) – – Outstanding at 31 December 2024 3,344,413 2,862,912 3,662 5.01 Exercisable as at 31 December 2024 – – – – Range of exercise prices (£) – – – 4.23 – 6.10 1 The ﬁve highest paid ind iv iduals include Bill Winters. 2 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards. 3 1,129,021 (LTIP) granted on 12 March 2024, 1,544 (LTIP) granted as a notional div idend on 1 March 2024. 961,552 (Deferred shares) granted on 11 March 2024, 624 (Deferred shares) granted as a notional div idend on 1 March 2024, 223 (Deferred shares) granted as a not ional div idend on 8 August 2024. 1,536 (Sharesave) granted on 23 September 2024. 4 Deferred shares were granted at a share price of £6.558; LTIP shares were granted at a share price of £6.600, the closing price on the last trading day preceding the grant date. The vesting period for these awards ranges from 1 to 7 years. 5 For Sharesave granted in 2024 the exercise price is £6.10 per share, a 20% discount on the closing share price on 16 August 2024 of £7.624. The average of the closing prices over the ﬁve days prior to the inv itat ion date of 19 August 2024 was £7.421. See page 177 for details of awards and options for Bill Winters See page 360 for a view of share awards and options for all employees See page 356 for details on the accounting standard adopted for share awards is IFRS2 The table below shows the emoluments of: (i) the ﬁve highest-paid employees; and (i i) sen ior management for the year ended 31 December 2024. Remuneration band HKD Remuneration band USD equivalent Number of employees Five highest paid Senior management 1 9,500,001 – 10,000,000 1,217,013 – 1,281,066 – 1 22,000,001 – 22,500,000 2,818,345 – 2,882,398 – 2 25,500,001 – 26,000,000 3,266,718 – 3,330,771 – 2 27,000,001 – 27,500,000 3,458,878 – 3,522,931 – 1 28,000,001 – 28,500,000 3,586,985 – 3,651,038 – 1 33,500,001 – 34,000,000 4,291,571 –4,355,624 – 1 37,000,001 – 37,500,000 4,739,944 – 4,803,997 – 1 40,000,001 – 40,500,000 5,124,264 – 5,188,317 – 1 42,500,001 – 43,000,000 5,444,530 – 5,508,583 – 1 43,000,001 – 43,500,000 5,508,584 – 5,572,636 – 1 54,500,001 – 55,000,000 6,981,809 –7,045,862 – 1 62,000,001 – 62,500,000 7,942,608 – 8,006,662 1 1 63,000,001 – 63,500,000 8,070,715 – 8,134,768 1 – 68,000,001 – 68,500,000 8,711,248 – 8,775,301 1 1 118,500,001 – 119,000,000 15,180,630 – 15,244,684 1 1 119,500,001 – 120,000,000 15,308,737 – 15,372,790 1 1 Total 5 17 1 Senior management comprises the executive directors and the members of the Group Management Team at any point during 2024. Shir ish Apte Chair of the Remuneration Committee 21 February 2025 182 Standard Chartered – Annual Report 2024 Directors’ report Other disclosures Other statutory and regulatory disclosures This section sets out addit ional informat ion requ ired to be included in the Directors’ report. Where set out elsewhere in the report, the informat ion in the tables below is incorporated by reference. The Group operates in the UK and overseas through a number of subsid iar ies, branches and ofﬁces. Information about the princ ipal act iv it ies of the Group is set out in the Strategic report. Disclosures required pursuant to Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 Engagement with customers, suppliers and others See pages 35 to 38 of the Strategic report Engagement with employees See pages 38 to 41 of the Strategic report in addit ion to page 188 of th is Directors’ report Post balance sheet events See Note 37 to the Financ ial statements Directors’ interests See page 163 of the Directors’ remuneration report. As at 14 February 2024, there had been no changes to those interests in relation to directors remain ing in ofﬁce at that date Future developments in the Group’s business See the Strategic report Debt and Equity capital Notes 22 and 28 to the Financ ial statements in addit ion to pages 184 to 185 of this Directors’ report Loan capital Notes 22 and 27 to the Financ ial statements Share buyback Note 28 to the Financ ial statements in addit ion to page 185 of th is Directors’ report Financ ial instruments See Risk review and Capital review on pages 193 and 270 The Group’s 2024 ﬁnancial statements have been prepared in accordance with the princ iples of the UK F inance Disclosure Code for Financ ial Report ing Disclosure. Disclosures required under UK List ing Rule 6.6.1 UKLR 6.6.1 (11-12) (Waiver of div idends) See Note 28 to the Financ ial Statements UKLR 6.6.1 (1) (2) (3-10) (13) N/A Applicat ion of the pr inc iples of the UK Corporate Governance Code Board leadership and company purpose Section Page A – Promoting long-term sustainable success and value Strategic report 2 - 46 Board of Director 105 - 109 B – Purpose, value, strategy and alignment with culture Who we are and what we do 2 - 3 Our strategy 18 Integrity, conduct and ethics 95 - 97 Group Code of Conduct 190 C – Performance measures, controls and risk management Key performance ind icators 12 - 13 Enterprise Risk Management Framework 196 - 200 D – Shareholder and other stakeholder engagement Section 172 statement 35 - 41 E – Workforce polic ies and pract ices Employment engagement and Employee polic ies 188 Div is ion of Responsib il it ies F – Chair role and responsib il it ies Our corporate governance 113 G – Board roles and responsib il it ies Our corporate governance 113 H – Non-executive directors’ role and capacity Our corporate governance 113 Board activ it ies and attendance 114 External appointments and independence 120 I – Board effectiveness and efﬁc iency Director train ing and development 117 - 118 Board effectiveness 119 - 120 Composit ion, success ion and evaluation J – Board appointments and succession plans Governance and Nominat ion Comm ittee report 137 K – Board skills, experience, knowledge and tenure Board of Directors 105 - 109 L – Board evaluation of composit ion, d ivers ity and effect iveness Board effectiveness 119 - 120 Indiv idual performance 118 183 Standard Chartered – Annual Report 2024 Directors’ report Applicat ion of the pr inc iples of the UK Corporate Governance Code continued Section Page Audit, risk and internal control M – Independence and effectiveness of internal and external audit functions, integr ity of ﬁnancial and narrat ive statements Audit Committee report 123 - 128 Non-audit services 190 - 191 N – Fair, balanced and understandable assessment of the Company’s posit ion and prospects Audit Committee report 123 - 128 Fair, Balanced and Understandable 125 O – Risk management and internal controls Risk review 194 - 269 Remuneration P – Remuneration polic ies and pract ices Remuneration Committee report 143 - 174 Q – Procedure for developing remuneration policy Remuneration Committee Terms of Reference R – Independent judgement and discret ion when author is ing remuneration outcomes Remuneration Committee Terms of Reference ESG Disclosures Hong Kong List ing Rules Appendix C2 We comply with the requirements of the ESG Reporting Guide contained in Appendix C2 to The Rules Governing the List ing of Secur it ies on the Stock Exchange of Hong Kong L im ited. With respect to the KPIs noted in Part C: ‘Comply or explain’ provis ions, the Group does not report on KPI A1.3 and KPI A1.6 related to the production and handling of hazardous waste; KPI A2.5 related to packaging materials used for ﬁn ished products; KPI B6.1 total products recalled due to safety and health reasons; and KPI B6.4 product recall procedures. As an ofﬁce-based ﬁnancial serv ices provider these issues were not deemed material. For further informat ion related to Aspect B4 Labour Standards and B5 Supply Chain Management, please also refer to the Group’s annual Modern Slavery Statement. Task Force on Climate-related Financ ial D isclosures (TCFD) In line with our ‘comply or explain’ obligat ion under the UK’s FCA’s L ist ing Rule 6.6.6R (8), we can conﬁrm that we have made disclosures consistent with the TCFD recommendations as per Section C – Guidance for All Sectors and Section D – Supplemental Guidance for the Financ ial Sector: Banks of the 2021 TCFD Implementing Guidance in this Annual Report. Please refer to our TCFD reporting index on pages 43 to 44. Aspect B4 Labour Standards and B5 Supply Chain Management Refer also to the Group’s annual Modern Slavery Statement (see below). Non-ﬁnancial and susta inab il ity informat ion statement See page 42 of the Strategic report. Modern slavery The Group publishes a Modern Slavery Statement under the UK Modern Slavery Act 2015 and the Australian Modern Slavery Act 2018 for the ﬁnanc ial year end ing 31 December 2024. See more via sc.com/modernslavery Sustainable ﬁnance taxonomies Standard Chartered continues to assess the applicab il ity of sustainable ﬁnance taxonomies across the Group’s footprint. Reporting has commenced in several markets in accordance with local sustainable ﬁnance taxonomy regulatory requirements. The Group will continue to consider applicable taxonomy alignment in our business decis ions, includ ing at a cl ient and transaction level, as well as more broadly at a sector strategy level. Given our footprint across Europe and the UK, Asia, Africa and the Middle East, we need to continually assess taxonomy alignment requirements based on informat ion ava ilable from clients and through our due dil igence processes. Streamlined energy and carbon reporting Environmental impact of our operations We aim to min im ise the environmental impact of our operations as part of our commitment to be a responsible company. We report on the actions we take to reduce energy and water usage and non-hazardous waste generated in our operations in the Sustainab il ity review on page 77 and in the ESG Data Pack at sc.com/sustainab il ityl ibrary . Our reporting methodology is based on ‘The Greenhouse Gas (GHG) Protocol – A Corporate Accounting and Reporting Standard (Revised Edit ion)’. We have adopted the operat ional control approach to deﬁne our reporting boundary for GHG Scope 1 and 2 emiss ions. For Scope 3 ﬁnanced and fac il itated emiss ions, boundar ies are noted for each high-emitt ing sector in the ‘Our approach to measuring ﬁnanced emiss ions’ table in the Sustainab il ity review on page 81. Information on the princ iples and methodolog ies used to calculate the GHG emiss ions of the Group can be found in our Environmental Reporting Criter ia document at sc.com/environmentcriter ia 184 Standard Chartered – Annual Report 2024 Directors’ report Other disclosures Reporting period, boundary and scope We report on sustainab il ity and environmental, social and governance (ESG) matters throughout this Annual Report, in particular in the following sections: (i) Strategic report, Sustainab il ity overview on pages 42 to 44; (i i) Susta inab il ity review on pages 58 to 94; (i i i) Risk review on pages 194 to 269; and (iv) in the Supplementary sustainab il ity informat ion section on pages 393 to 395. The reporting period for Scope 1 and Scope 2 emiss ions and energy consumption is from 1 October 2023 to 30 September 2024. This allows sufﬁc ient t ime for independent third-party assurance to be completed prior to the publicat ion of the Group’s Annual Report. Accordingly, the operating income used in the GHG emiss ions and energy consumpt ion data table below for associated environmental intens ity metr ics corresponds to the same time period, rather than the calendar year used in ﬁnanc ial report ing. The reporting periods for other sustainab il ity informat ion in this Annual Report may differ and are set out on page 61. As we aim to improve our emiss ions measurement and reporting year-on-year, we have included leased vehicle ﬂeet emiss ions in our Scope 1 ﬁgures in 2024. Apart from that, there was no sign iﬁcant change in the boundary and scope of our Scope 1 and Scope 2 emiss ions reported in this Annual Report from that of Standard Chartered PLC Annual Report 2023, published on 23 February 2024. Assurance Our Scope 1 and 2 emiss ions are assured (l im ited level) by an independent company, Global Documentation, against the requirements of ISO 14064. GHG emiss ions and energy consumpt ion data The Group has disclosed Scope 1 and Scope 2 GHG emiss ions and energy consumpt ion data as required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. Units 2024 2023 2022 Reporting coverage of data Annual operating income from 1 October to 30 September $ mill ion 19,110 17,414 15,863 Net internal area of occupied property m 2 850,817 880,515 946,234 GHG emiss ions Scope 1 & 2: Scope 1 emiss ions ¹ tCO 2 e 7,696 8,488 2,071 Scope 2 emiss ions (locat ion-based)² tCO 2 e 82,837 85,741 89,410 Scope 2 emiss ions (market-based) 3 tCO 2 e 17,272 26,246 47,363 Scope 1 & 2 emiss ions (market-based) 3 tCO 2 e 24,968 34,734 49,434 Scope 1 & 2 emiss ions (UK and offshore area only) tCO 2 e – 248 – GHG emiss ions – Intens ity: Total Scope 1 &2 emiss ions (market-based) intens ity tCO 2 e/$ mill ion 1 2 3 Environmental resource efﬁc iency Energy Indirect non-renewable energy consumption GWh 125 142 142 Indirect renewable energy consumption GWh 14 16 24 Direct non-renewable energy consumption GWh 12 13 10 Direct renewable energy consumption GWh 2 2 1 Energy consumption GWh 154 173 177 Energy consumption (UK and offshore area only) GWh 7 6 6 1 As we aim to improve our emiss ions measurement and report ing year-on-year, we have included leased vehicle ﬂeet emiss ions in our Scope 1 ﬁgures in 2024 (1,340 tCO 2 e) and fugit ive em iss ions s ince 2023. (3,877 tCO 2 e in 2024 and 5,266 tCO 2 e in 2023). 2022 data was not available for fugit ive em iss ions 2 Location-based emiss ions have been restated for pr ior comparative periods. Emiss ions erroneously included renewable energy certif icates and power purchase agreements. Other Scope 2 reductions outside clean power are attributed to footprint reduction and efﬁc iency ga ins 3 Market-based emiss ions have decreased from 2022 to 2023 due to footpr int reduction, efﬁc iency ga ins and the purchase of addit ional energy attr ibut ion certif icates by the Group Further detail on our environment performance and the independent assurance report can be found in our ESG data pack at sc.com/sustainab il ityl ibrary ; associated assumptions and methodologies in our reporting criter ia document at sc.com/environmentcriter ia Share capital, constitut ion and shareholder r ights Share capital in issue The issued ordinary share capital of the Company was reduced by a total of 239,528,930 over the course of 2024 This was due to the cancellation of ordinary shares as part of the Company’s two share buyback programmes. No ordinary shares were issued during the year. The Company has one class of ordinary shares, which carries no rights to ﬁxed income. On a show of hands, each member present has the right to one vote at our general meetings. On a poll, each member is entitled to one vote for every share held. The issued nominal value of the ordinary shares represents 83.2 per cent of the total issued nominal value of all share capital. The remain ing 16.8 per cent compr ises preference shares, which have preferential rights to income and capital but which, in general, do not confer a right to attend and vote at our general meetings. There are no specif ic restr ict ions on the s ize of a holding nor on the transfer of shares, which are both governed by the Articles of Associat ion and preva il ing leg islat ion. There are no specif ic restr ict ions on vot ing rights and the directors are not aware of any agreements between holders of the Company’s shares that may result in restrict ions on the transfer of securit ies or on vot ing rights. No person has any special rights of control over the Company’s share capital and all issued shares are fully paid. 185 Standard Chartered – Annual Report 2024 Directors’ report Buyback At the AGM held on 10 May 2024, our shareholders renewed the Company’s authority to make market purchases of up to 261,582,895 ordinary shares, equivalent to approximately 10 per cent of issued ordinary shares as at 26 March 2024, and up to all of the issued preference share capital. The authority to make market purchases up to 10 per cent of issued ordinary share capital (and, prior to the 2024 AGM, a sim ilar author ity granted in the previous year at the 2023 AGM) was used during the year through two buyback programmes announced in February and in July 2024. These were util ised as part of the Group’s approach to div idend growth and cap ital returns. The ﬁrst share buyback programme commenced on 27 February 2024 and ended on 25 June 2024. The second share buyback programme commenced on 1 August 2024 and ended on 30 January 2025. A total of 250,829,058 ordinary shares with a nominal value of $0.50 each were re-purchased under the two programmes for an approximate aggregate considerat ion pa id of $2.5 bill ion. A monthly breakdown of the shares purchased during the period includ ing the lowest and h ighest price paid per share is set out in Note 28 to the ﬁnanc ial statements. All ord inary shares which were bought back were cancelled. Articles of Associat ion The Articles of Associat ion may be amended by spec ial resolution of the shareholders. Directors’ powers Subject to company law, the Articles of Associat ion and the authority granted to directors in general meeting, the directors may exercise all the powers of the Company and may delegate authorit ies to comm ittees. The Company is granted authority to issue shares by the shareholders at its AGM. The size of the authorit ies granted depends on the purposes for which shares are to be issued and is with in appl icable legal and regulatory requirements. Shareholder rights Under the Companies Act 2006, shareholders holding 5 per cent or more of the paid-up share capital of the Company carrying the right of voting at general meetings of the Company are able to require the directors to hold a general meeting. Where such a request has been duly lodged with the Company, the directors are obliged to call a general meeting with in 21 days of becom ing subject to the request and must set a date for the meeting not more than 28 days from the date of the issue of the notice convening the meeting. Under the Companies Act 2006, shareholders holding 5 per cent or more of the total voting rights at an AGM of the Company, or 100 shareholders entitled to vote at the AGM with an average of at least £100 paid-up share capital per shareholder, are entitled to require the Company to circulate a resolution intended to be moved at the Company’s next AGM. Such a request must be made not later than six weeks before the AGM to which the request relates or, if later, the time notice is given of the AGM. Sufﬁciency of publ ic ﬂoat As at the date of this report, the Company has mainta ined the prescribed public ﬂoat under the rules governing the list ing of secur it ies on The Stock Exchange of Hong Kong Lim ited (the Hong Kong L ist ing Rules), based on the informat ion publ icly available to the Company and with in the knowledge of the directors. Debenture issues and equity-linked agreements During the ﬁnanc ial year ended 31 December 2024, other than as disclosed in the Annual Report and Notes 22, 27 and 28 to the ﬁnancial statements, the Company made no issuance of debentures (includ ing debenture stock, bonds and any other debt securit ies). Deta ils of the equity-linked agreements the Group entered into can be found in Note 28 to the ﬁnancial statements. Electronic communicat ions Our shareholders are encouraged to receive our corporate documents electronically. The annual and inter im ﬁnancial statements, Notice of AGM and any div idend c irculars are all available electronically. If you do not already receive your corporate documents electronically and would like to do so in future, please contact our registrars at the address on page 396. Shareholders are also able to submit proxy votes or voting instruct ions onl ine by vis it ing our registrar’s website at www.investorcentre.co.uk/eproxy . Annual General Meeting Our 2025 AGM will be held at 11:00am (UK time) (6:00pm Hong Kong time) on 8 May 2025. Further details regarding the format, location and business to be transacted will be disclosed with in the 2025 Not ice of AGM. Our 2024 AGM was held on 10 May 2024 at 11:00am (UK time) (6:00pm Hong Kong time). Special business at the meeting included the approval of the power to allot ECAT1 Securit ies for cash without certain formalit ies, and an amendment to our articles to simpl ify the votes of ord inary shareholders so that each ordinary share confers one vote (previously ordinary shareholders were entitled to one vote for every four shares held). Div idends 2024: paid inter im d iv idend of 9.00 cents per ord inary share (2023: paid inter im d iv idend of 6.00 cents per ord inary share) 2024: proposed ﬁnal div idend of 28 cents per ord inary share (2023: paid ﬁnal div idend of 21.00 cents per ord inary share) 2024: total div idend of 37 cents per ord inary share (2023: total div idend, 27 cents per ord inary share) Directors’ independence, interests and conﬂicts The Company has received from each of the INEDs an annual conﬁrmation of independence pursuant to Rule 3.13 of the Hong Kong List ing Rules and st ill considers all of the non- executive directors to be independent. Details of the directors’ beneﬁc ial and non-beneﬁcial interests in the ordinary shares of the Company as at 31 December 2024 are shown in the directors’ remuneration report on page 163. As at 14 February, the latest practicable date before publicat ion of th is Annual Report, there had been no changes to those interests in relation to directors remain ing in ofﬁce at that date. 186 Standard Chartered – Annual Report 2024 Directors’ report Other disclosures At no time during the year did any director hold a material interest in any contracts of sign iﬁcance (as deﬁned in the Hong Kong List ing Rules) w ith the Company or any of its subsid iary undertak ings. In accordance with the Companies Act 2006, we have established a process requir ing d irectors to disclose proposed outside business interests before any are entered into. This enables prior assessment of any conﬂict or potential conﬂict of interest and any impact on time commitment. On behalf of the Board, the Governance and Nominat ion Comm ittee reviews potential and exist ing conﬂicts of interest annually to consider if they continue to be conﬂicts of interest, and also to revis it the terms upon wh ich they were authorised. The Board is satisf ied that our processes in this respect continue to operate effectively. The Company has granted indemn it ies to all of its directors on terms consistent with the applicable statutory provis ions. Qualify ing th ird-party indemn ity prov is ions for the purposes of section 234 of the Companies Act 2006 were accordingly in force during the course of the ﬁnanc ial year ended 31 December 2024 and remain in force at the date of this report. Qualify ing pens ion scheme indemn ity prov is ions (as deﬁned by section 235 of the Companies Act 2006) were in force during the course of the ﬁnanc ial year ended 31 December 2024 for the beneﬁt of the UK’s pension fund corporate trustee (Standard Chartered Trustees (UK) Lim ited), and remain in force at the date of this report. Sign iﬁcant and related/connected party contracts and arrangements The Company is not party to any sign iﬁcant agreements that would take effect, alter or terminate following a change of control of the Company. The Company does not have agreements with any director or employee that would provide compensation for loss of ofﬁce or employment resulting from a takeover, except that provis ions of the Company’s share schemes and plans may cause awards granted to employees under such schemes and plans to vest on a takeover, subject to any regulatory or tax considerat ions that may prevent th is. Details of transactions with directors and ofﬁcers and other related parties (with in the mean ing of IAS 24) are set out in Note 36 to the ﬁnancial statements. Transactions with Temasek By virtue of its shareholding of over 10 per cent in the Company, Temasek and its associates are connected persons of the Company for the purpose of the Rules Governing the List ing of Secur it ies on The Stock Exchange of Hong Kong Lim ited (HKEx) (the HK L ist ing Rules). The HK List ing Rules are intended to ensure that there is no favourable treatment to Temasek or its associates to the detriment of other shareholders in the Company. Unless transactions between the Group and Temasek or its associates are specif ically exempt under the HK L ist ing Rules or are subject to a specif ic wa iver, they may require a combinat ion of announcements, report ing and independent shareholders’ approval. On 19 November 2024, the HKEx extended a waiver (the Waiver) it previously granted to the Company for the revenue banking transactions with Temasek which do not fall under the passive investor exemption (the Passive Investor Exemption) under Rules 14A.99 and 14A.100 of the HK List ing Rules. Under the Waiver, the HKEx agreed to waive the announcement requirement, the requirements to enter into written agreements and to set annual caps, and the annual report disclosure (includ ing annual rev iew) requirements under Chapter 14A of the HK List ing Rules for the three-year period ending 31 December 2027 on the condit ions that: a) The Company will disclose details of the Waiver (includ ing nature of the revenue banking transactions with Temasek and reasons for the Waiver) in subsequent annual reports; and b) The Company will continue to monitor the revenue banking transactions with Temasek during the three years ending 31 December 2027 to ensure that the 5 per cent threshold for the revenue ratio will not be exceeded. The main reasons for seeking the Waiver were: • The nature and terms of revenue banking transactions may vary and evolve over time and the transactions may be subject to the change in ﬁnanc ial and cap ital markets outlook. As a result of that, having ﬁxed-term written agreements would not be suitable to accommodate the various banking needs of the Company’s customers (includ ing Temasek). • It would be impract icable to est imate and determine an annual cap on the revenue banking transactions with Temasek as the volume and aggregate value of each transaction are uncertain and unknown to the Company as a banking group due to multiple factors includ ing market-driven factors. • The revenues generated from revenue banking transactions were ins ign if icant. W ithout a waiver from the HKEx or an applicable exemption, these transactions would be subject to various percentage ratio tests which cater for different types of connected transactions and as such may produce anomalous results. For the year ended 31 December 2024, the Group provided Temasek with money market revenue transactions that were revenue transactions in nature. As a result of the Passive Investor Exemption and the Waiver, the vast majority of the Company’s transact ions with Temasek and its associates fall outside of the connected transactions regime. However, non-revenue transactions with Temasek or any of its associates continue to be subject to monitor ing for connected transaction issues. The Company conﬁrms that: • the revenue banking transactions entered into with Temasek and its associates in 2024 were below the 5 per cent threshold for the revenue ratio test under the HK List ing Rules, and • it will continue to monitor revenue banking transactions with Temasek during the three years ending 31 December 2027 to ensure that the 5 per cent threshold for the revenue ratio will not be exceeded. The Company therefore satisf ied the cond it ions of the Wa iver. 187 Standard Chartered – Annual Report 2024 Directors’ report Major shareholders As at 31 December 2024, Temasek Holdings (Private) Lim ited (Temasek) is the only shareholder that has an interest of more than 10 per cent in the Company’s issued ordinary share capital carrying a right to vote at any general meeting. Information provided to the Company pursuant to the FCA’s Disclosure Guidance and Transparency Rules (DTRs) is published on a Regulatory Information Service and on the Company’s website. As at 14 February, the latest practicable date before publicat ion of th is Annual Report, the Company has been notif ied of the follow ing informat ion, in accordance with DTR 5, from holders of notif iable interests in the Company’s issued share capital. The informat ion prov ided in the table below was correct at the date of notif icat ion; however, the date received may not have been with in 2024. It should be noted that these holdings are likely to have changed since the Company was notif ied. However, notif icat ion of any change is not required until the next notif iable threshold is crossed. Notif iable interests Interest in ordinary shares (based on voting rights disclosed) Percentage of capital disclosed Nature of holding as per disclosure Temasek Holdings (Private) Lim ited 447,461,831 17.00 Indirect BlackRock Inc. 183,640,172 5.55 Indirect (5.01%) Securit ies Lend ing (0.39%) Contracts for Difference (0.14%) Risk management and internal controls 1 Risk management The Board is responsible for mainta in ing and review ing the effectiveness of the risk management system. An ongoing process for ident ify ing, evaluating and managing the sign iﬁcant r isks that we face is in place. The Board is satisf ied that this process constitutes a robust assessment of all the princ ipal r isks, topical and emerging risks and integrated risks facing the Group, includ ing those that would threaten its business model, future performance, solvency or liqu id ity. Key areas of risk on ﬁnanc ial instruments for the directors included the impa irment of loans and advances and valuation of ﬁnanc ial instruments held at fair value. This risk assessment and management is explained further in the Audit Committee Key areas and Action taken on page 124. The Risk review and Capital review on pages 194 and 269 sets out the princ ipal r isks, topical and emerging risks, our approach to risk management, includ ing our r isk management princ iples, an overv iew of our ERMF and the risk management and governance practices for each princ ipal r isk type. The Board-approved Risk Appetite Statement can be found on pages 28 and 198. In accordance with Article 435(1)(e) of the Disclosure (CRR) Part of the PRA Rulebook, the Board Risk Committee, on behalf of the Board, has considered the adequacy of the risk management arrangements of the Group and has sought and received assurance that the risk management systems in place are adequate with regard to the Group’s proﬁle and strategy. Internal controls The Board is responsible for mainta in ing and review ing the effectiveness of the internal control system. Its effectiveness is reviewed regularly by the Board, its committees, the Management Team and GIA. For the year ended 31 December 2024, the Board Risk Committee has reviewed the effectiveness of the Group’s system of internal control and discussed a report on the 2024 annual risk and control self-assessment. GIA represents the third line of defence and provides independent assurance of the effectiveness of management’s control of business activ it ies (the ﬁrst line) and of the control processes mainta ined by the R isk Framework Owners and Policy Owners (the second line). The audit programme includes obtain ing an understanding of the processes and systems under audit review, evaluating the design of controls, and testing the operating effectiveness and outcomes of key controls. The work of GIA is focused on the areas of greatest risk as determined by a risk-based assessment methodology. The Board considers the internal control systems of the Company to be effective and adequate. GIA reports regularly to the Audit Committee, the Group Chairman and the Group Chief Executive; and the Group Head, Internal Audit reports directly to the Chair of the Audit Committee and admin istrat ively to the Group Chief Executive. The ﬁndings of all adverse aud its are reported to the Audit Committee, the Group Chairman and the Group Chief Executive where immed iate correct ive action is required. The Board Risk Committee is responsible for exercis ing oversight, on behalf of the Board, of the key risks of the Group. It reviews the Group’s Risk Appetite Statement and EMRF and makes recommendations to the Board. The Audit Committee is responsible for oversight and advice to the Board on matters relating to ﬁnanc ial, non-ﬁnancial and narrat ive reporting. The Committee’s role is to review, on behalf of the Board, the Group’s internal controls includ ing internal ﬁnancial controls. The Aud it Committee receives and discusses a paper on the internal controls for ﬁnanc ial books and records. The risk management approach starting on page 196 describes the Group’s risk management oversight committee structure. Our business is conducted with in a developed control framework, underpinned by polic ies and standards. These are designed to ensure the ident iﬁcation and management of risk, includ ing Cred it Risk, Traded Risk, Treasury Risk, Operational and Technology Risk, ICS Risk, Compliance Risk, Financ ial Cr ime Risk, ESG and reputational risk, as well as Model Risk. This framework incorporates the Group’s internal controls on ﬁnancial report ing. The Board has established a management structure that clearly deﬁnes roles, responsib il it ies and report ing lines. Delegated authorit ies are documented and commun icated. Executive risk committees regularly review the Group’s risk proﬁle. The performance of the Group’s businesses is reported regularly to senior management and the Board. Performance trends and forecasts, as well as actual performance against budgets and prior periods, are monitored closely. Group ﬁnancial informat ion is prepared on the basis set out in Note 1 to the ﬁnancial statements w ith in the Statement of compliance and ﬁnanc ial report ing is subject to the Group’s control framework for reconcil iat ion processes. 1 The Group’s Risk Management Framework and System of Internal Control applies only to wholly controlled subsid iar ies of the Group, and not to Associates, Joint Ventures or Structured Entit ies of the Group 188 Standard Chartered – Annual Report 2024 Directors’ report Other disclosures Operational procedures and controls have been established to facil itate complete, accurate and t imely processing of transactions and the safeguarding of assets. These controls include appropriate segregation of duties, the regular reconcil iat ion of accounts and the valuation of assets and posit ions. In respect of handl ing ins ide informat ion, we have applied controls to help ensure only those explic itly requ ired receive ins ide informat ion as well as controls regard ing the onward dissem inat ion of ins ide informat ion. Controls are also in place to approve and review dealings in the Company’s shares. Such systems and controls are designed to manage rather than elim inate the r isk of failure to achieve business objectives and can only prov ide reasonable and not absolute assurance against material misstatement or loss. Safeguarding intellectual property rights The Group has processes in place to manage the Group’s trade mark rights and it respects third-party intellectual property rights. Employee engagement We work hard to ensure that our employees are kept informed about matters affecting, or of interest to, them and more importantly that they have opportunit ies to prov ide feedback and engage in a dialogue. We strive to listen and act on feedback from colleagues to ensure internal communicat ions are t imely, informat ive, meaningful, and in support of the Group’s strategy and transformation. Pulse is our primary internal communicat ions channel that allows colleagues to receive company updates and informat ion that is personalised by role and location, sign up for events, provide feedback, and navigate to other internal platforms. In addit ion to targeted d ig ital communicat ions, we also organ ise audio and video calls, virtual and face-to-face townhalls, and other staff engagement and recognit ion events. To continue to improve the way we communicate and ensure our employee communicat ions rema in relevant, we also period ically analyse and measure the impact of our communicat ions through a range of feedback tools, includ ing an annual global internal communicat ions survey. Our sen ior leaders and people leaders play a crit ical role in engaging our teams across the network, ensuring that they are kept up to date on key business developments related to our performance and strategy. We offer addit ional support to our senior leaders and people leaders with specif ic calls and communicat ions packs to help them prov ide context and guidance to their team members to better understand their role in executing and deliver ing the Group’s strategy. Across the organisat ion, regular team meet ings with people leaders, one-to-one conversations and various management meetings provide an important platform for colleagues to discuss and clarify key issues. Regular performance conversations provide the opportunity to discuss how ind iv iduals, the team and the business area have contributed to our overall performance and how recognit ion and reward relate to this. The Group’s senior leadership also regularly shares global, business, function, and market updates on performance, strategy, structural changes, HR programmes, community involvement and other campaigns. The Board also engages with and listens to the views of the workforce through several sources, includ ing through interact ive engagement sessions. More informat ion can be found on page 121 in the Directors’ report. Employees past, present and future can follow our progress through the Group’s LinkedIn network and Facebook page, as well as other social network channels includ ing Instagram and X, which collectively have nearly 2.9 mill ion followers. The diverse range of internal and external communicat ion tools and channels we have put in place aim to ensure that all colleagues receive timely and relevant informat ion to support their effectiveness. Employment polic ies We work hard to ensure our employees’ wellbeing so that they can thrive at work and in their personal lives. Our Group min imum standards prov ide employees with a range of ﬂexible working options, in relation to both location and working patterns. Employees are provided with at least 30 days’ leave (through annual leave and public holidays), and new parents are provided a min imum of 20 calendar weeks’ fully paid leave, irrespect ive of gender, relat ionsh ip status or how a child comes to permanently jo in a fam ily. These beneﬁts are in excess of the International Labour Organizat ion’s (ILO) m in imum standards. We seek to mainta in a mean ingful relationsh ip based on mutual trust and respect with various employee representative bodies (includ ing un ions and work councils). In our recognit ion and interact ions, we are heav ily inﬂuenced by the 1948 United Nations Universal Declaration of Human Rights, and several ILO conventions includ ing the R ight to Organise and Collective Bargain ing Convent ion, 1949 (No. 98) and the Freedom of Associat ion and Protect ion of the Right to Organise Convention, 1948 (No. 87). 13 per cent of employees, across 20 markets, have collective representation through unions or employee representative bodies. Working condit ions and terms of employment of other employees are based on our Group and country polic ies, and in accordance with ind iv idual employment contracts issued by the Group. Employees’ concerns in relation to their employment or another colleague which cannot be resolved through informal mechanisms such as counselling, coaching or mediat ion, are dealt with through our Group Grievance Standard. This includes concerns related to bullying, harassment, sexual harassment, discr im inat ion and/or v ict im isat ion, as well as concerns regarding condit ions of employment (for example, working practices or the working environment). Employees can raise grievances to their People Leader or a Human Resources (HR) representative. The global process for addressing grievances involves an HR representative and a member of the business review ing the gr ievance, conducting fact ﬁnding into the grievance and provid ing a wr itten outcome to the aggrieved employee. Where employees raise concerns regarding alleged wrongdoing pertain ing to another employee or in circumstances where the employee alleges wrongdoing, but does not wish to raise a grievance, such concerns are invest igated in accordance with the Group Investigat ions Standard. If a grievance or invest igat ion is upheld, the next steps might include remedying a process, or in it iat ing a d isc ipl inary review of the conduct of the colleague who is the subject of the concern. The Group Grievance Standard and accompanying process is reviewed on a period ic bas is in consultation with stakeholders across HR, Legal, Compliance and Shared Investigat ive Serv ices. Grievance trends are reviewed on a quarterly basis and action is taken to address any concerning trends. 189 Standard Chartered – Annual Report 2024 Directors’ report There is a dist inct Group Speak ing Up Policy and Standard which covers instances where an employee wishes to ‘blow the whistle’ on actual, planned or potential wrongdoing by another employee or the Group. The Group is committed to creating a fair, consistent and transparent approach to making decis ions in a disc ipl inary context. This commitment is codif ied in our Fair Accountabil ity Princ iples, wh ich underpin our Group Disc ipl inary Standard. Dism issals due to m isconduct issues and/or performance (where required by law to follow a disc ipl inary process) are governed by the Group Disc ipl inary Standard. Where local law or regulation requires a different process with regards to dism issals and other d isc ipl inary outcomes, we have clearly documented country variances in place. Our Group Divers ity and Inclus ion Standard has been developed to ensure a diverse and inclus ive workplace, w ith fair and equal treatment, and the provis ion of opportun it ies for employees to partic ipate fully and reach the ir full potential in a respectful working environment. All ind iv iduals are entitled to be treated with dign ity and respect, and to be free from harassment, bullying, discr im inat ion and v ict im isat ion. This helps to support productive working condit ions, decreased staff attrit ion, pos it ive employee morale and engagement, mainta ins employee wellbe ing and reduces people-related risk. All colleagues are responsible for fostering an inclus ive culture where ind iv idual ity and d iffer ing sk ills, capabil it ies and experience are understood, respected and valued. All colleagues, consultants, contractors, volunteers, interns, casual workers and agency workers are required to comply with the Standard, includ ing conduct ing themselves in a manner that demonstrates appropriate, non-discr im inatory behaviours. We do not accept unlawful discr im inat ion in our recruitment or employment practices on any grounds includ ing but not lim ited to: sex, race, colour, nat ional ity, ethn ic ity, nat ional or ind igenous or ig in, d isab il ity, age, marital or civ il partner status, pregnancy or maternity, sexual orientat ion, gender ident ity, expression or reassignment, HIV or AIDS status, parental status, mil itary and veterans status, ﬂex ib il ity of working arrangements, relig ion or bel ief. We are committed to provide equal opportunit ies and fa ir treatment in recruitment, appraisals, pay and condit ions, tra in ing, development, succession planning, promotion, grievance/disc ipl inary procedures and employment terminat ion pract ices, that are inclus ive and access ible, and that do not directly or ind irectly d iscr im inate. Recruitment, employment, train ing, development and promotion decis ions are based on the sk ills, knowledge and behaviour required to perform the role to the Group’s standards. Implied in all employment terms is the commitment to equal pay for equal work. We also endeavour to make reasonable workplace adjustments (includ ing dur ing the hir ing process by g iv ing full and fa ir considerat ions to all applicat ions) to ensure all ind iv iduals feel supported and are able to partic ipate fully and reach the ir potential. We aim to be a disab il ity-conﬁdent organisat ion w ith a focus on removing barriers and improv ing access ib il ity. If employees become disabled, we will aim to support them with appropriate train ing and workplace adjustments where possible and support their career development and continued employment. Health, safety and wellbeing Our Health, Safety and Wellbeing (HSW) vis ion is to support employee productiv ity through a healthy and res il ient workforce, and our miss ion is to deliver every day in a safe and secure resil ient way. Our corporate HSW programme covers both mental and physical health and wellbeing. The Group complies with both external regulatory requirements and internal policy and standards for HSW in all markets. It is Group policy to ensure that the more stringent of the two requirements is always met, ensuring our HSW practices meet or exceed the regulatory min imum. Compl iance rates are reported at least twice a year to each country’s Management Team. We follow the ILO code of practice on recording and notif icat ion of occupational accidents and diseases, as well as align ing to UK Health and Safety Execut ive (HSE), and ensuring we meet all local health and safety (H&S) regulatory reporting requirements. We record and report all work-related illness and injuries, includ ing for sub-contractors, v is itors and clients. In 2024, we saw a reduction in serious work injuries with nil work-related fatalit ies nor ill health to report. Major in juries (per the UK HSE deﬁnit ion) decreased from 21 in 2023 to 14 in 2024, with fractures the most common type of major in jury (57 per cent). Overall, there was an increase of 6 per cent in reported injuries in 2024. ‘Slips/trips/falls’ and ‘transport/ commuting’ accidents remain the most common causes of injury. Our injury rates remain aligned to, or better than industry benchmarks. Hazards and near miss-reports decreased 1 per cent between 2023 and 2024. HSW performance and risks are reported annually to the Group Risk Committee and Board Risk Committee. We use an H&S management system and local regulatory compliance tracker across all countries to ensure a consistently high level of H&S reporting and compliance for all our colleagues and clients. In 2024, we refreshed our Group HSW Standards with enhanced focus on inc ident management through a clear process for timely invest igat ions, root cause analysis, and putting together corrective and preventive actions, and on communicat ing lessons learned. We enhanced contractor safety with guidel ines for select ing, onboarding, and managing contractors, and continuous monitor ing and evaluation of contractor performance to address the elevated H&S risks faced by our contractors due to the nature of their work. In April 2024, we celebrated World Day for Safety and Health at Work across the Group. Over 900 colleagues joined web inars on topics such as preventing burnout and supporting resil ience. We also relaunched the Safety and Security Learning Pathway in the Bank’s learning platform, remind ing how each employee can help ma inta in a safe working environment in the Group. The Group sponsors medical and healthcare services for all employees, except in markets where cover is provided through state-mandated healthcare, which represent less than 0.8 per cent of the Group’s employees. More details on how we support our colleagues’ wellbeing are on pages 39 and 188 of this report. 190 Standard Chartered – Annual Report 2024 Directors’ report Other disclosures Psychosocial risk is an area that an increas ing number of H&S regulators are legislat ing on. Psychosoc ial risks are those that cause physical or psychological harm, aris ing from the design or management of work, the work environment, workplace interact ions or behav iours. In line with the Australia Work Health and Safety (Managing Psychosocial Hazards at Work) Code of Practice 2024, a pilot study was conducted in Australia, assessing the psychosocial hazards and factors. In 2025 we aim to expand our H&S management systems to cover management of psychosocial risks. In 2024, we achieved the WELL Equity Rating for nine key ofﬁce build ings across the globe and ach ieved the WELL Gold Certif icat ion for Capitol Tower Hanoi Vietnam. Developed by the International WELL Build ing Inst itute (IWBI), the rating and certif icat ion recognises the Group’s commitment to creating people-ﬁrst workplaces that promote health, wellbeing, and equity, and is a sign iﬁcant m ilestone in our broader strategy towards enhancing social sustainab il ity. Group Code of Conduct The Board has adopted a Group Code of Conduct and Ethics (the Code) relating to the lawful and ethical conduct of business and this is supported by the Group’s valued behaviours. This has been communicated to all directors and employees, all of whom are expected to observe high standards of integr ity and fa ir dealing in relation to customers, employees and regulators in the communit ies in which the Group operates. Directors and employees are asked to recommit to the Code annually, and 99.9 per cent have completed the 2024 recommitment. All Board members have recommitted to the Code. Customers and products Our ﬁve largest customers together accounted for 1.9 per cent of our total operating income in the year ended 31 December 2024. We aim to design and offer products based on client needs to ensure fair client treatment and to support fair outcomes for clients. The Group has in place a risk framework, compris ing polic ies, standards and controls to support these objectives in alignment with our Conduct Risk Management Approach. We ensure products sold are suitable for clients and comply with relevant laws and regulations. We also review our products on a period ic bas is and reﬁne them to keep them relevant to the changing needs of clients and to meet regulatory obligat ions. We have processes and guidel ines spec if ic to each of our client industr ies, to promptly resolve Cl ient complaints and understand and respond to client issues. For more informat ion on our approach to product design, product pric ing, treat ing customers fairly and protecting clients, and incent iv is ing our frontline employees, see pages 35 to 36. In 2024, the total number of client complaints in CIB was 1,585. In WRB, we received in total 201,901 client complaints (an average of 1.78 per 1,000 active clients per month). Suppliers and our supply chain In 2024, $4.7 bill ion was spent w ith 10,918 suppliers. Of this, 72.3 per cent of the total spend was in the Asia region, with 20.6 per cent in Europe and the Americas, and 7.1 per cent in Africa and the Middle East. Furthermore, 80 per cent of total spend in 2024 was with 389 suppliers. In 2024, our ﬁve largest suppliers together accounted for 14.47 per cent of total spend, with the largest ten amounting to 22.64 per cent of total spend. Our purchases of goods and services are governed through a third-party risk management framework through which we aim to follow the highest standards in terms of selection of suppliers, due dil igence and contract management. For informat ion about how the Group engages w ith suppliers on environmental and social matters, please see our Supplier Charter and Supplier Divers ity and Inclus ion Standard. Our Supplier Charter and Supplier Divers ity and Inclus ion standard can be viewed at sc.com/suppliercharter and sc.com/supplierd ivers ity Details of how we create value for our suppliers and other stakeholder groups can be found on page 37 Polit ical donat ions The Group has a policy in place which prohib its donat ions being made that would: (i) improperly inﬂuence legislat ion or regulation, (i i) promote pol it ical v iews or ideolog ies, and (i i i) fund polit ical causes. In al ignment to this, no polit ical donations were made in the year ended 31 December 2024. Research and development During the year, the Group invested $2.13 bill ion (2023: $2.01 bill ion) in research and development, of which $1.18 (2023: $0.99 bill ion) was recogn ised as an expense. The research and development investment primar ily related to the planning, analysis, design, development, testing, integrat ion, deployment and in it ial support of technology systems. Responsible AI The Group has been actively embracing AI and dig ital innovat ion to stay compet it ive in the Banking, Financ ial Services and Insurance sector for a number of years. The approved AI use cases in the Bank are deployed in various domains such as customer engagement, operational efﬁciency, r isk management, customer onboarding, employee engagement, management reporting and talent acquis it ion. Our Responsible AI governance has been established for a number of years and is led by a dedicated team with in the Chief Data Ofﬁce, who have been effectively managing the centralised governance of all AI use cases. Our approach aligns with leading industry standards, specif ically the MAS FEAT and HKMA BDAI guidel ines, wh ich are benchmarks in the Banking regulator space. This alignment not only ensures our adherence to high ethical and regulatory guidel ines but also posit ions us well for future industry developments. Our Audit Committee receives twice-yearly reports on Data Risk, which includes Responsible AI. Auditor independence Non-audit services The Group’s Non-Audit Services Policy (the Policy) is based on an overrid ing pr inc iple that, to avo id any actual or perceived conﬂicts of interest, the Group’s auditors should only be used when there is evidence that there is no alternative in terms of quality and when there is no conﬂict with their duties as auditor. Each request for EY to provide non-audit services will be assessed on its own merits. However, the following types of non-audit services are likely to be permiss ible under the Pol icy: • reviews of inter im ﬁnancial informat ion and ver if icat ion of inter im proﬁts – the Group would also extend th is to work on investor circulars in most foreseeable circumstances • extended audit or assurance work on ﬁnanc ial informat ion and/or ﬁnancial or operat ional controls, where this work is closely linked to the audit engagement • agreed-upon procedures on materials with in or referenced in the Annual Report of the Group or an entity with in the Group, and • internal control review services. 191 Standard Chartered – Annual Report 2024 Directors’ report The following are strictly prohib ited under the Pol icy: • bookkeeping, informat ion technology and internal audit services • corporate ﬁnance services, valuation services or lit igat ion support • tax or regulatory structuring proposals • services where fees are paid on a contingent basis (in whole or in part), and • consulting services that actively assist in running the business in place of management as opposed to provid ing or validat ing informat ion, wh ich management then util ises in the operation of the business. To ensure that the Group will comply with a cap that lim its fees on non-audit services provided by EY to under 70 per cent of the average Group audit fee from the previous three consecutive ﬁnanc ial years (wh ich applies from EY’s fourth year of being the Group’s external auditor), the Policy requires that annual non-audit service fees are lower than 70 per cent of the average annual Group audit fee for the last three years. The caps exclude audit related non-audit services and services carried out pursuant to law or regulation. For 2024, the 70 per cent fee cap ratio was 23 per cent. Details relating to EY’s remuneration as the Group Statutory Auditor and the types of non-audit services provided by EY are given in Note 38 to the ﬁnancial statements. Information given to the auditor Each director believes that there is no relevant informat ion of which our Group Statutory Auditor is unaware. Each has taken all steps necessary as a director to be aware of any relevant audit informat ion and to establ ish that the Group Statutory Auditor is made aware of any pertinent informat ion. EY w ill be in attendance at the 2025 AGM. A resolution to re-appoint EY as auditor was passed at the Company’s 2024 AGM. EY is a Public Interest Entity Auditor recognised in accordance with the Hong Kong Financ ial Report ing Council Ordinance. By order of the Board Adrian de Souza Group Company Secretary 21 February 2025 Standard Chartered PLC Registered No. 966425 192 Standard Chartered – Annual Report 2024 Directors’ report Statement of directors’ responsib il it ies Statement of directors’ responsib il it ies The directors are responsible for preparing the Annual Report and the Group and Company ﬁnancial statements in accordance with applicable law and regulations. Company law requires the directors to prepare Group and Company ﬁnancial statements for each ﬁnancial year. Under that law: • the Group ﬁnancial statements have been prepared in accordance with UK-adopted International Accounting Standards and International Financ ial Report ing Standards as adopted by the European Union • the Company ﬁnancial statements have been properly prepared in accordance with UK-adopted International Accounting Standards as applied in accordance with section 408 of the Companies Act 2006, and • the ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 2006. Under company law the directors must not approve the ﬁnancial statements unless they are sat isf ied that they g ive a true and fair view of the state of affairs of the Group and Company and of their proﬁt or loss for that period. In preparing each of the Group and Company ﬁnanc ial statements, the directors are required to: • select suitable accounting polic ies and then apply them consistently • make judgements and estimates that are reasonable, relevant and reliable • state whether they have been prepared in accordance with UK-adopted International Accounting Standards and International Financ ial Report ing Standards as adopted by the European Union • assess the Group and the Company’s abil ity to cont inue as a going concern, disclos ing, as appl icable, matters related to going concern, and • use the going concern basis of accounting unless they either intend to liqu idate the Group or the Company or to cease operations, or have no realist ic alternat ive but to do so. The directors are responsible for keeping adequate accounting records that are sufﬁc ient to show and expla in the Company’s transactions and disclose with reasonable accuracy at any time the ﬁnanc ial pos it ion of the Company and enable them to ensure that its ﬁnanc ial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of ﬁnanc ial statements that are free from material misstatement, whether due to fraud or error, and have general responsib il ity for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregular it ies. Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report, a Directors’ Report, a Directors’ Remuneration Report and a Corporate Governance Statement that comply with that law and those regulations. The directors are responsible for the maintenance and integr ity of the corporate and ﬁnancial informat ion included on the Company’s website. Legislat ion in the UK governing the preparation and dissem inat ion of ﬁnanc ial statements differs from legislat ion in other jur isd ict ions. Responsib il ity statement of the directors in respect of the annual ﬁnancial report We conﬁrm that to the best of our knowledge: • The ﬁnancial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liab il it ies, ﬁnancial pos it ion and proﬁt or loss of the Company and the undertakings included in the consolidat ion taken as a whole, and • The Strategic report includes a fair review of the development and performance of the business and the posit ion of the Company and the undertak ings included in the consolidat ion taken as a whole, together w ith a descript ion of the emerg ing risks and uncertaint ies that they face. We consider the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the informat ion necessary for shareholders to assess the Group’s posit ion and performance, bus iness model and strategy. By order of the Board. Diego De Giorg i Group Chief Financ ial Ofﬁcer 21 February 2025 Focusing on the cross-border needs of afﬂuent clients As a leading wealth manager across Asia, Africa and the Middle East, we connect afﬂuent clients to cross-border opportunit ies in the world’s most dynamic markets. We’re focused on serving the needs of internat ionally mob ile, afﬂuent Chinese and Indian clients, leveraging our wealth hubs in Hong Kong, Singapore, UAE and Jersey, supported by our team of multil ingual relat ionsh ip managers and special ists, who adv ise on cross-border wealth solutions to meet their internat ional banking needs. In October, we refreshed our afﬂuent internat ional bank ing proposit ion for Global Indian clients and opened new internat ional centres in Mumbai and Chennai. Learn more sc.com/global-ind ian Risk review and Capital review 194 Risk Index 196 Enterprise Risk Management Framework 201 Princ ipal r isks 207 Risk proﬁle 232 Capital review 193 Standard Chartered — Annual Report 2024 Risk review and Capital review 194 Standard Chartered – Annual Report 2024 Risk review Index Risk review and Capital review Annual Report and Risk Index Accounts Risk management Enterprise Risk Management Framework 196 approach Princ ipal r isks 201 Risk proﬁle Credit Risk 207 Basis of preparation 207 Credit Risk overview 207 Impairment model 207 Staging of ﬁnanc ial instruments 207 IFRS 9 ECL princ iples and approaches 207 Summary of Credit Risk performance 207 Maximum exposure to Credit Risk 209 Analysis of ﬁnanc ial instruments by stage 210 Credit quality analysis 212 • Credit quality by client segment 212 • Credit quality by key geography 217 Movement in gross exposures and credit impa irment for loans and advances, debt secur it ies, undrawn commitments and ﬁnanc ial guarantees 219 Analysis of stage 2 balances 225 Credit impa irment charge 226 Problem credit management and provis ion ing 226 • Forborne and other modif ied loans by cl ient segment 226 • Forborne and other modif ied loans by key geography 226 Credit Risk mit igat ion 227 • Collateral 227 • Collateral held on loans and advances 227 • Collateral – Corporate and Investment Banking 227 • Collateral – Wealth and Retail Banking 228 • Mortgage loan-to-value ratios by geography 228 • Collateral and other credit enhancements possessed or called upon 229 • Other Credit Risk mit igat ion 229 Other portfolio analysis 229 • Maturity analysis of loans and advances by client segment 229 • Credit quality by industry 230 • Industry and Retail Products analysis of loans and advances by key geography 231 • High carbon sectors 232 • Commercial real estate 234 • Debt securit ies and other el ig ible b ills 235 IFRS 9 ECL methodology 236 Traded Risk 247 Market Risk movements 247 Counterparty Credit Risk 249 Derivat ive ﬁnancial instruments Credit Risk mit igat ion 249 Liqu id ity and Funding Risk 250 Liqu id ity and Funding Risk metrics 250 Liqu id ity analysis of the Group’s balance sheet 252 Interest Rate Risk in the Banking Book 254 Operational and Technology Risk 255 Operational and Technology Risk proﬁle 255 Other princ ipal r isks 255 Climate Risk 256 Managing the ﬁnanc ial and non-ﬁnancial r isks from climate change 257 Assessing the resil ience of our strategy us ing scenario analysis 265 Standard Chartered – Annual Report 2024 195 Risk review and Capital review Annual Report and Risk Index Accounts Capital Capital summary 270 • Capital ratio 270 • Capital base 271 Movement in total capital 272 Risk-weighted asset 272 Leverage ratio 274 The following parts of the Risk review and Capital review form part of these ﬁnanc ial statements and are aud ited by the external auditors: a) Risk review: Disclosures marked as ‘audited’ from the start of Credit risk section (page 207) to the end of other princ ipal r isks in the same section (page 255); and b) Capital review: Tables marked as ‘audited’ from the start of ‘Capital base’ to the end of ‘Movement in total capital’, excluding ‘Total risk-weighted assets’ (pages 271 and 272). Risk review Risk management approach 196 Standard Chartered — Annual Report 2024 Enterprise Risk Management Framework Risk management is at the heart of banking, it is what we do. Managing risk effectively is how we drive commerce and prosperity for our clients and our communit ies, and it is how we grow sustainably and proﬁtably as an organisat ion. Effective risk management is essential in deliver ing cons istent and sustainable performance for all our stakeholders and is a central part of the ﬁnancial and operat ional management of the Group. The Group adds value to clients and the communit ies in which they operate by balancing risk and reward to generate returns for shareholders. The Enterprise Risk Management Framework (ERMF) enables the Group to manage enterprise-wide risks, with the objective of max im is ing risk-adjusted returns while remain ing with in our R isk Appetite (RA). The ERMF is complemented by frameworks, polic ies and standards wh ich are mainly aligned to the Princ ipal R isk Types (PRTs), and is embedded across the Group, includ ing its branches and subsid iar ies. 1 It is reviewed and approved by the Board annually, with the latest version being effective from August 2024. Risk culture Risk culture encompasses our general awareness, attitudes, and behaviours towards risk, as well as how risk is managed at enterprise level. A healthy risk culture is one in which everyone takes personal responsib il ity to ident ify and assess, openly d iscuss, and take prompt action to address exist ing and emerg ing risks. We expect our control functions to provide oversight and challenge constructively, collaboratively, and in a timely manner on the risks owned by the ﬁrst line of defence. This effort is reﬂected in our valued behaviours and underpinned by our Code of Conduct and Ethics. Further details on our Code of Conduct and Ethics can be found on page 95 . The risks we face constantly evolve, and we must always look for ways to manage them as effectively as possible. While unfavourable outcomes will occur from time to time, a healthy risk culture means that we react quickly and transparently. We can then take the opportunity to learn from our experience and improve our framework and processes. Strategic risk management The Group’s approach to strategic risk management includes the following: • Risk ident iﬁcation: impact analyses of risks that arise from the Group’s growth plans, strategic in it iat ives, and bus iness model vulnerabil it ies are reviewed. This assesses how exist ing r isks have evolved in terms of relative importance and whether new risks have emerged. • Risk Appetite: impact analysis is performed to assess if strategic in it iat ives can be ach ieved with in RA and h ighl ight areas where addit ional RA should be cons idered. • Stress testing: ident iﬁed r isks are used to develop scenarios for enterprise stress tests. Roles and responsib il it ies Senior Managers Regime 2 Roles and responsib il it ies under the ERMF are al igned to the objectives of the Sen ior Managers Regime. The Group Chief Risk Ofﬁcer (GCRO) is responsible for the overall development and maintenance of the Group’s ERMF and for ident ify ing material risks which the Group may be exposed to. The GCRO delegates effective implementat ion of the R isk Type Frameworks (RTF) to Risk Framework Owners (RFO), who provide second line of defence oversight for their respective PRTs. The Risk function The Risk function provides oversight and challenge on the Group’s risk management, ensuring that business is conducted in line with regulatory expectations. The GCRO directly manages the Risk function, which is independent from the orig inat ion, trading, and sales functions of the businesses. The Risk function is responsible for: • proposing the RA for approval by the Board • mainta in ing the ERMF, ensuring that it remains relevant and appropriate to the Group’s business activ it ies, and is effectively communicated and implemented across the Group • ensuring that risks are properly assessed, risk and return decis ions are transparent and r isks are controlled in accordance with the Group’s standards and RA • overseeing and challenging the management of PRTs under the ERMF • independence of the Risk function by ensuring that the necessary balance in making risk and return decis ions is not compromised by short-term pressures to generate revenues. The Risk function supports the Group’s strategy by build ing a sustainable ERMF that places regulatory and compliance standards, together with culture of appropriate conduct, at the forefront of the Group’s agenda. Our Compliance, Financ ial Cr ime and Conduct Risk (CFCR) function, 3 works alongside the Risk function with in the ERMF to deliver a unif ied second l ine of defence. Compliance Risk and Financ ial Cr ime Risk, as PRTs, fall under the scope of the CFCR’s responsib il it ies. Three lines of defence model The Group applies a three lines of defence model to its day-to-day activ it ies for effective risk management, and to reinforce a strong governance and control environment. Typically: • Businesses and functions engaged in or supporting revenue generating activ it ies that own and manage risks constitute the ﬁrst line of defence. 1 The Group’s ERMF and system of internal control applies only to wholly controlled subsid iar ies of the Group, and not to associates, jo int ventures or structured entit ies of the Group. 2 Senior managers refer to ind iv iduals designated as senior management functions under the FCA and PRA Senior Managers Regime. 3 From 1 January 2025, our Conduct, Financ ial Cr ime and Compliance (CFCC) function was renamed as Compliance, Financ ial Cr ime and Conduct Risk (CFCR). Standard Chartered — Annual Report 2024 197 Risk review and Capital review • Control functions, independent of the ﬁrst line of defence, that provide oversight and challenge of risk management activ it ies act as the second line of defence. • Internal Audit acts as the third line of defence, provid ing independent assurance on the effectiveness of controls supporting the activ it ies of the ﬁrst and second lines of defence. Each PRT has an RTF which outlines the areas of governance and risk management and is the formal mechanism through which authorit ies are delegated. R isk management plans, processes, activ it ies, and resource allocations are consistent with the three lines of defence model prescribed by the ERMF. Risk ident iﬁcation and assessment Identif icat ion and assessment of potentially adverse risk events is an essential ﬁrst step in managing the risks of any business or activ ity. To ensure cons istency we use PRTs to classify our risk exposures. However, we also recognise the need to mainta in a hol ist ic perspect ive since: • a single transaction or activ ity may g ive rise to multiple types of risk exposure • risk concentrations may arise from multiple exposures that are closely correlated • a given risk exposure may change its form from one risk type to another. There are also sources of risk that arise beyond our own operations, such as the Group’s dependency on suppliers for the provis ion of serv ices and technology. As the Group remains accountable for risks aris ing from the actions of such third parties, failure to adequately monitor and manage these relationsh ips could mater ially impact the Group’s abil ity to operate. The Group mainta ins a taxonomy of r isks inherent to the strategy and business model, as well as a risk inventory which captures ident iﬁed r isks, includ ing the Top ical and Emerging Risks (TERs) to which the Group is or might be exposed to. Multiple ident iﬁcation and assessment techn iques are used to ensure breadth and depth of understanding of the internal and external risk environment, as well as potential opportunit ies. A r isk assessment of the corporate plan is undertaken annually, supplemented by risk assessments of new in it iat ives. R isk ident iﬁcation ﬁndings inform the related risk oversight process, and most importantly RA and controls setting, scenario selection and design, and model reﬁnement and development. The GCRO and the Group Risk Committee (GRC) regularly review reports on the risk proﬁle for the PRTs, adherence to Group RA, stress test results and the Group risk inventory includ ing TERs. Risk Appetite and proﬁle The Group recognises the following constraints which determine the risks that we are will ing to take in pursuit of our strategy and the development of a sustainable business: • Risk capacity is the maximum level of risk the Group can assume, given its current capabil it ies and resources, before breaching constraints determined by capital and liqu id ity requirements or the internal operational environment, or otherwise fail ing to meet the expectat ions of regulator and law enforcement agencies. • RA is deﬁned by the Group and approved by the Board. It is the boundary for the risk that the Group is will ing to undertake to achieve its strategic object ives and corporate plan. We set RA to enable us to grow sustainably while managing our risks, giv ing conﬁdence to our stakeholders. The Group RA is supplemented by risk control tools such as granular level lim its, pol ic ies, and standards to ma inta in the Group’s risk proﬁle with in approved RA. The Board is responsible for approving the RA Statements, which are underpinned by a set of ﬁnanc ial and operat ional control parameters known as RA metrics and their associated thresholds. These set boundaries for the aggregate risk exposures that can be taken across the Group. The Group RA is reviewed bi-annually to ensure that it is ﬁt for purpose and aligned with strategy, with focus given to new or emerging risks. Risk Appetite Statement The Group’s objective is to not compromise adherence with its RA in order to pursue revenue growth or higher returns. See the table on page 198 for the set of RA Statements. Stress testing The objective of stress test ing is to support the Group in assessing that it: • does not have exposure to excessive risk concentrations that could produce unacceptably high losses under severe but plausible scenarios • has sufﬁcient ﬁnancial resources to w ithstand severe but plausible scenarios • has the ﬁnancial ﬂex ib il ity to respond to extreme but plausible scenarios • understands key business model risks and considers what kind of event might crystallise those risks – even if extreme and with a low likel ihood of occurr ing • ident iﬁes, as requ ired, actions to mit igate the l ikel ihood or impact of those events • has set RA metrics at appropriate levels. Enterprise stress tests incorporate capital and liqu id ity adequacy stress tests, includ ing recovery and resolut ion, as well as reverse stress tests. Stress tests are performed at the Group, country, business, and portfolio level under a wide range of risks and at varying degrees of severity. Unless specif ically set by the regulator, scenario design is a bespoke process that aims to explore risks that can adversely impact the Group. The Board delegates approval of the Bank of England (BoE) stress test submiss ions to the Board R isk Committee (BRC), which reviews the recommendations from the GRC. Based on the stress test results, the Group Chief Financ ial Ofﬁcer (GCFO) and GCRO can recommend strategic actions to the Board to ensure that the Group’s strategy remains with in RA. In addit ion, analys is is run at the PRT level to assess specif ic risks and concentrations that the Group may be exposed to. These include qualitat ive assessments such as stress ing of credit sectors or portfolios, and quantitat ive assessments such as potential losses from severe but plausible market risk scenarios or internal stressed liqu id ity metrics. 198 Standard Chartered — Annual Report 2024 Risk review Risk management approach Stress testing plays a crit ical role in assessing the potential impact on portfolio values of extreme but plausible scenarios, leading to potential losses typically much larger than those predicted by the Value at Risk (VaR) model. The Group uses histor ical and forward-look ing scenarios. A common set of scenarios is used across all legal entit ies complemented in some cases with entity-specif ic scenar ios. RA for market risk stress losses is set at the Group as well as legal entity level. Non-ﬁnancial r isk types are also stressed to assess the necessary capital requirements under the Operational and Technology RTF. The Group has also undertaken a number of Climate Risk stress tests, both those mandated by regulators as well as management scenarios. Princ ipal R isk Types PRTs are those risks that are inherent in our strategy and business model and have been formally deﬁned in the Group’s ERMF. These risks are managed through dist inct RTFs wh ich are approved by the GCRO. The PRTs and associated RA Statements are reviewed annually. The table below shows the Group’s current PRTs, their deﬁn it ion and RA Statement. Princ ipal R isk Types Deﬁnit ion Risk Appetite Statement Credit Risk Potential for loss due to failure of a counterparty to The Group manages its credit exposures following meet its agreed obligat ions to pay the Group. the princ iple of d ivers iﬁcation across products, geographies, client segments and industry sectors. Traded Risk Potential for loss resulting from activ it ies undertaken The Group should control its ﬁnanc ial markets by the Group in ﬁnanc ial markets. activ it ies to ensure that market and counterparty credit risk losses do not cause material damage to the Group’s franchise. Treasury Risk Potential for insuff ic ient capital, liqu id ity, or funding The Group should mainta in sufﬁcient cap ital, liqu id ity to support our operations, the risk of reductions in and funding to support its operations, and an interest earnings or value from movements in interest rates rate proﬁle ensuring that the reductions in earnings impact ing bank ing book items and the potential for or value from movements in interest rates impact ing losses from a shortfall in the Group’s pension plans. banking book items does not cause material damage to the Group’s franchise. In addit ion, the Group should ensure its pension plans are adequately funded. Operational and Potential for loss resulting from inadequate or failed The Group aims to control operational and Technology Risk internal processes, technology events, human error, technology risks to ensure that operational losses or from the impact of external events (includ ing (ﬁnancial or reputat ional), includ ing any related to the legal risks). conduct of business matters, do not cause material damage to the Group’s franchise. Information and Cyber Risk to the Group’s assets, operations, and The Group aims to mit igate and control ICS r isks Security (ICS) Risk ind iv iduals due to the potential for unauthorised to ensure that inc idents do not cause the Bank access, use, disclosure, disrupt ion, mod if icat ion, material harm, business disrupt ion, ﬁnancial loss or destruction of informat ion assets and/or or reputational damage – recognis ing that wh ile informat ion systems. inc idents are unwanted, they cannot be ent irely avoided. Financ ial Cr ime Risk 4 Potential for legal or regulatory penalties, material The Group has no appetite for breaches of laws and ﬁnancial loss or reputat ional damage resulting regulations related to Financ ial Cr ime, recognis ing from the failure to comply with applicable laws that while inc idents are unwanted, they cannot be and regulations relating to internat ional sanct ions, entirely avoided. anti-money laundering and anti-bribery and corruption, and fraud. Compliance Risk Potential for penalties or loss to the Group or for The Group has no appetite for breaches of laws and an adverse impact to our clients, stakeholders regulations related to regulatory non-compliance; or to the integr ity of the markets we operate in recognis ing that wh ile inc idents are unwanted, they through a failure on our part to comply with laws, cannot be entirely avoided. or regulations. Environmental, Social Potential or actual adverse impact on the The Group aims to measure and manage ﬁnanc ial and Governance environment and/or society, the Group’s ﬁnanc ial and non-ﬁnancial r isks aris ing from cl imate change, and Reputational performance, operations, or the Group’s name, reduce emiss ions in line with our net zero strategy (ESGR) Risk brand or standing, aris ing from env ironmental, and protect the Group from material reputational social or governance factors, or as a result of the damage by upholding responsible conduct and Group’s actual or perceived actions or inact ions. striv ing to do no s ign iﬁcant env ironmental and social harm. Model Risk Potential loss that may occur because of decis ions The Group has no appetite for material adverse or the risk of misest imat ion that could be princ ipally impl icat ions aris ing from m isuse of models or errors based on the output of models, due to errors in in the development or implementat ion of models; the development, implementat ion, or use of while accepting some model uncertainty. such models. 4 Fraud forms part of the Financ ial Cr ime RA Statement but, in line with market practice, does not apply a zero-tolerance approach. As of November 2024, the Climate Risk RA Statement was integrated into the ESGR PRT. Standard Chartered — Annual Report 2024 199 Risk review and Capital review ERMF effectiveness reviews The GCRO is responsible for annually afﬁrm ing the effectiveness of the ERMF to the BRC via an effectiveness review. This review is based on the princ iple of ev idence- based self-assessments for all the RTFs and relevant polic ies. A top-down review and challenge of the results is conducted by the GCRO with all RFOs and an opin ion on the internal control environment is provided by Internal Audit. The ERMF effectiveness review measures year-on-year progress. The key outcomes of the 2024 review are: • Continued focus on embedding the ERMF across the organisat ion. • Financ ial r isks continue to be effectively managed, and the Group is making good progress in embedding non-ﬁnanc ial risk management. • Self-assessments performed in branches and banking subsid iar ies reﬂect the embeddedness of the ERMF. Country and cluster risk committees continue to play an active role in overseeing and managing risks across our footprint markets. Ongoing effectiveness reviews allow for a structured approach to ident ify improvement opportunit ies and bu ild plans to address them. In 2025, the Group aims to further strengthen its risk management practices by improv ing the management of non-ﬁnancial r isks with in its businesses, functions and across our footprint. As the regulatory environment continuously changes, the Group constantly monitors regulatory developments and take proactive actions for compliance. Executive and Board risk oversight Overview The corporate governance and committee structure helps the Group to conduct our business. The Board has ultimate responsib il ity for risk management and approves the ERMF based on the recommendation of the BRC, which also recommends the Group RA Statement for all PRTs and other risks. In addit ion to the BRC and Aud it Committee, the Culture and Sustainab il ity Committee oversees the Group’s culture and key sustainab il ity prior it ies. See page 113 for the Board and committee governance structure. Group Risk Committee The GRC, which derives its authority from the GCRO, is responsible for ensuring the effective management of risk throughout the Group in support of the Group’s strategy. The GCRO chairs the GRC, whose members are drawn from the Group Management Team. The GRC oversees the effective implementat ion of the ERMF for the Group, includ ing the delegat ion of any part of its authorit ies to appropr iate ind iv iduals or sub-committees. Group Risk Committee sub-committees Chair Roles and responsib il it ies Group Non-Financ ial R isk Global Head, Operational, Governs the in-scope non-ﬁnanc ial r isks throughout the Group in support Committee (GNFRC) Technology and Cyber Risk of the ERMF and the Group’s strategy. Group Financ ial Cr ime Risk Group Head, CFCR Ensures that the Financ ial Cr ime Risk proﬁle (excluding Fraud Risk and Committee (GFCRC) Secondary Reputational Risk aris ing from F inanc ial Cr ime Risk) is managed with in RA and pol ic ies. Group Responsib il ity and GCRO Ensures the effective management of Reputational and Sustainab il ity Reputational Risk Committee Risk across the Group. This includes provid ing overs ight of matters aris ing (GRRRC) from clients, products, transactions and strategic coverage-related decis ions and matters escalated by the respect ive RFOs. International Financ ial Co-chaired by the Global Ensures the effective management of expected credit loss (ECL) Reporting Standards (IFRS) 9 Head Enterprise Risk computations, as well as stage allocation of ﬁnanc ial assets for quarterly Impairment Committee (IIC) Management (ERM) and ﬁnancial report ing. Group Head, Central Finance Model Risk Committee Global Head, ERM To support the Group strategy by ensuring the effective measurement (MRC) and management of Model Risk in line with internal polic ies and model RA. Investment Committee Global Head of Stressed Ensures the optim ised w ind-down of the Group’s non-core direct Assets Risk investment activ it ies in equit ies, quas i-equit ies (exclud ing mezzanine), funds and other alternative investments (excluding debt/debt-like instruments). SC Ventures (SCV) Risk CRO, SCV who receives Oversees the effective management of risk throughout SCV and the Committee authority directly from the portfolio of controlled entit ies operat ing under SCV. GCRO Climate Risk Management Global Head, ERM Oversees the effective implementat ion of the Group’s Cl imate Risk Committee (CRMC) workplan, includ ing relevant regulatory requ irements. This includes embedding Climate Risk and net zero oversight across Group businesses, as part of the Group’s commitment to manage Climate Risk related ﬁnancial and non-ﬁnancial r isks. Regulatory Interpretation Co-chaired by the Global Provides oversight of material regulatory interpretat ions for the Cap ital Committee (RIC) Head ERM and Group Head, Requirements Regulation (as amended by UK legislat ion), the Prudent ial Central Finance Regulatory Authority (PRA) rulebook and other relevant regulations impact ing Group regulatory cap ital calculations and reporting. The areas and risk types in scope are credit risk, traded risk, operational risk, large exposures, leverage ratio and securit isat ion. Risk review Risk management approach 200 Standard Chartered – Annual Report 2024 Group Risk Committee sub-committees Chair Roles and responsib il it ies Dig ital Assets R isk CRO, SC Ventures & Global Oversees effective risk management of the Dig ital Assets (DA) R isk Committee (DRC) Head, Dig ital Asset R isk proﬁle of the Group. This includes provid ing overs ight and subject matter expertise of DA Risk matters across the PRTs. Corporate & Investment Co-Heads CRO CIB and CRO, Ensures the effective management of ﬁnanc ial r isk throughout CIB in Banking Financ ial R isk ASEAN & South Asia support of the Group’s strategy. Committee (CIBFRC) Wealth & Retail Banking Chief Risk Ofﬁcer, WRB & Ensures the effective management of risk throughout WRB in support Risk Committee (WRBRC) GCNA of the Group’s strategy. HK & GCNA Risk Committee CRO, Hong Kong & GCNA These committees ensure the effective management of risk in the (HK&GCNA RC) clusters in support of the Group’s strategy. SG & ASEAN Risk Committee CRO, Singapore & ASEAN (SG&ASEAN RC) Standard Chartered Bank CRO, India & South Asia (SCB) India Country Risk Committee (CRC & CNFRC) UK & Europe Risk Committee CRO & Chief Credit Ofﬁcer, (UK & ERC) Europe Americas Risk Committee CRO, Americas (ARC) Middle East and Pakistan CRO & Regional CCO AME Risk Committee (MEPRC) Africa Risk Committee CRO & Regional CCO AME Group Asset and Liab il ity Committee The Group Asset and Liab il ity Committee (GALCO) is chaired by the GCFO. Its members are drawn princ ipally from the Management Team. GALCO is responsible for determin ing the Group’s balance sheet strategy and ensuring that, in executing the Group’s strategy, the Group operates with in RA and regulatory requirements relating to capital, loss- absorbing capacity, liqu id ity, leverage, Interest Rate Risk in the Banking Book (IRRBB), Banking Book Basis Risk and Structural Foreign Exchange Risk. It also monitors the structural impact of decis ions around susta inable ﬁnance, net zero and climate risk. GALCO is also responsible for ensuring that internal and external recovery planning requirements are met. Standard Chartered – Annual Report 2024 201 Risk review and Capital review Princ ipal r isks We manage and control our PRTs through dist inct RTFs, pol ic ies and RA. See page 198 for the Group’s current PRT deﬁnit ions and Risk Appetite Statements. Changes impact ing PRTs in 2024 In May 2024, to further align with our risk strategy and promote consistency and efﬁc iency, the Operat ional and Technology Risk and Information and Cyber Security Risk teams were unif ied under the Operat ional, Technology and Cyber Risk (OTCR) function. The PRT disclosures and RA Statements for ICS Risk and Operational and Technology Risk remain separate. Following Tracey McDermott’s retirement as Group Head, Conduct, Financ ial Cr ime and Compliance at the end of 2024, David Howes has been appointed as Group Head, Compliance, Financ ial Cr ime and Conduct Risk (CFCR) from 1 January 2025 and will assume Senior Manager responsib il it ies for F inanc ial Cr ime, includ ing the Group Ent ity Senior Manager Function, Compliance Oversight Function (SMF16) and Money Laundering Reporting Ofﬁcer (MLRO) role (SMF 17). Credit Risk Mit igat ion Segment-specif ic pol ic ies are in place for Corporate & Investment Banking (CIB) and Wealth & Retail Banking (WRB) which set the princ iples that must be followed for the end-to-end credit process covering in it iat ion, assessment, documentation, approval, monitor ing and governance. The Group also sets out standards for the elig ib il ity, enforceabil ity, and effect iveness of mit igat ion arrangements. Potential losses are mit igated us ing a range of tools, such as collateral, netting agreements, credit insurance, credit derivat ives and guarantees. Risk mit igants are carefully assessed for the ir market value, legal enforceabil ity, correlat ion, and counterparty risk of the protection provider. Collateral is valued prior to drawdown and regularly thereafter as required, to reﬂect current market condit ions, the probab il ity of recovery and the per iod of time to realise the collateral in the event of liqu idat ion. The Group also seeks to divers ify its collateral holdings across asset classes and markets. Where guarantees, credit insurance, standby letters of credit or credit derivat ives are used as Cred it Risk mit igat ion, the creditworth iness of the protect ion provider is assessed and monitored using the same credit process applied to the obligor. Monitor ing The Group regularly monitors credit exposures, portfolio performance, external trends and emerging risks that may impact risk management outcomes. Internal risk management reports that are presented to risk committees contain informat ion on key pol it ical and econom ic trends across major portfolios and countries, portfolio delinquency and loan impa irment performance. In CIB, clients and portfolios are subject to addit ional rev iew when they display signs of actual or potential weakness; for example, where there is a decline in the client’s posit ion w ith in their industry, ﬁnanc ial deter iorat ion, a breach of covenants, or non-performance of an obligat ion w ith in the st ipulated period. Such accounts are subject to a dedicated process overseen by the Credit Issues Committee in the relevant countries where client account strategies and credit grades are re-evaluated. In addit ion, remed ial actions can be undertaken, such as placing accounts on early alert for exposure reduction, security enhancement or exit ing the account. Credit-impa ired accounts are managed by the Group’s special ist recovery un it, Stressed Asset Group (SAG), which is independent of the Client Coverage/Relationsh ip Managers. The Stressed Asset Risk (SAR) Group is the second line risk unit. On an annual basis, senior members from the CIB business and Risk partic ipate in a more extensive portfolio review (known as the ‘industry portfolio review’) for certain industry groups. In addit ion to a rev iew of the portfolio informat ion, this industry portfolio review incorporates industry outlook, key elements of the business strategy, RA, credit proﬁle and emerging and horizon risks. A summary of these industry portfolio reviews is also shared with the CIB Financ ial R isk Committee. For WRB, exposures and collateral monitor ing are performed at the counterparty and/or portfolio level across different client segments to ensure transactions and portfolio exposures remain with in RA. Portfol io delinquency trends are also monitored. Accounts that are past due (or perceived as high risk but not yet past due) are subject to collections or recovery processes managed by a special ist independent function. In some countries, aspects of collections and recovery activ it ies are outsourced. For discret ionary lend ing portfolios, sim ilar processes to those of CIB are followed. Any material in-country developments that may impact sovereign ratings are monitored closely by Country Risk with in the ERM function. The Country Risk Early Warning system, a triage-based risk ident iﬁcation system, categor ises countries based on a forward-looking view of possible downgrades and the potential incremental risk-weighted assets (RWA) impact. In addit ion, an independent Credit Risk review team with in the ERM function performs assessments of the Credit Risk proﬁles at various portfolio levels. They focus on selected countries and segments through deep dives, comparative analysis, and review and challenge of the basis of credit approvals. The review aims to ensure that the evolving Credit Risk proﬁles of CIB and WRB are well managed with in RA and pol ic ies. Results of the reviews are reported to the GRC and BRC. Credit rating and measurement All credit proposals are subject to a robust credit risk assessment. It includes a comprehensive evaluation of the client’s credit quality, includ ing w ill ingness, ab il ity, and capacity to repay. The primary lending considerat ion for counterparties is based on their credit quality and operating cash ﬂows, while for ind iv idual borrowers it is based on personal income or wealth. The risk assessment gives due considerat ion to the cl ient’s liqu id ity and leverage posit ion. Where applicable, the assessment includes a detailed analysis of the Credit Risk mit igat ion arrangements to determine the level of reliance on such arrangements as the secondary source of repayment in the event of a sign iﬁcant deteriorat ion in a client’s credit quality leading to default. Client income, net worth, and the liqu id ity of asset by class are considered for overall risk assessment for wealth lending. Wealth lending credit lim its are subject to the ava ilab il ity of qualif ied collateral. Risk review Risk management approach 202 Standard Chartered – Annual Report 2024 A standard alphanumeric Credit Risk grade system is used for CIB, whereby credit grades 1 to 12 are assigned to performing customers, and credit grades 13 and 14 are assigned to non-performing or defaulted customers. WRB internal ratings-based portfolios use applicat ion and behavioural credit scores that are calibrated to generate a probabil ity of default. The R isk Decis ion Framework uses a credit rating system to deﬁne the portfolio/new booking segmentation, shape and decis ion cr iter ia for the unsecured consumer business segment. Advanced Internal Ratings-Based (AIRB) models cover the majority of our exposures and are used in assessing risks at a customer and portfolio level, setting strategy, and optim is ing our risk-return decis ions. The Model R isk Committee (MRC) approves material internal ratings-based risk measurement models. Prior to review and approval, all internal ratings- based models are validated by an independent model validat ion team. Rev iews are also triggered if the performance of a model deteriorates materially against predetermined thresholds, measured through the ongoing model performance monitor ing process. We adopt the AIRB approach under the Basel regulatory framework to calculate Credit Risk capital requirements for the majority of our exposures. The Group has also establ ished a global programme to assess capital requirements necessary to be implemented to meet the latest revised Basel III regulation (referred to as Basel 3.1 or Basel IV). Credit Concentration Risk Credit Concentration Risk for CIB is managed through concentration lim its cover ing large exposure lim it to a s ingle counterparty or a group of connected counterparties (based on control and economic dependence criter ia), or at portfol io level for multiple exposures that are closely correlated. Portfolio RA metrics are set, where appropriate, by industry, products, tenor, collateralisat ion level, top cl ients, and exposure to holding companies. For concentrations that are material at a Group level, breaches and potential breaches are monitored by the respective governance committees and reported to the GRC and BRC. Credit impa irment For CIB, in line with the regulatory guidel ines, Stage 3 expected credit loss (ECL) is considered when an obligor is more than 90 days past due on any amount payable to the Group, or the obligor has symptoms of unlikel iness to pay its credit obligat ions in full as they fall due. These credit-impa ired accounts are managed by SAG. In WRB, loans to ind iv iduals and small businesses are considered credit-impa ired as soon as any payment of interest or princ ipal is 90 days overdue or they meet other objective ev idence of impa irment, such as bankruptcy, debt restructuring, fraud, or death, with unlikely continuat ion of contractual payments. Financ ial assets are wr itten off, in the amount that is determined to be irrecoverable, when they meet condit ions set such that emp ir ical ev idence suggests the client is unlikely to meet their contractual obligat ions, or a loss of princ ipal is reasonably expected. Estimat ing the amount and t im ing of future recover ies involves sign iﬁcant judgement and cons iders the assessment of matters such as future economic condit ions and the value of collateral, for which there may not be a readily accessible market. The total amount of the Group’s impa irment provis ion is inherently uncertain, being sensit ive to changes in economic and credit condit ions across the markets in which the Group operates. Further details on sensit iv ity analysis of ECL under IFRS 9 can be found in the ‘Risk proﬁle’ section on pages 236 to 246 . Underwrit ing The underwrit ing of secur it ies and loans is in scope of the CIB RA. Addit ional l im its approved by the GCRO are set on sectoral concentration and maximum holding period. The Underwrit ing Comm ittee, under the authority of the GCRO, approves ind iv idual proposals to underwrite new security issues and loans for our clients. In July 2024, oversight of the Underwrit ing Comm ittee was transferred from Traded Risk to CIB Credit Risk. Traded Risk Mit igat ion Traded Risk lim its are deﬁned at a level wh ich aims to ensure that the Group remains with in RA. The Traded R isk Policy sets the princ iples that must be followed for the end-to-end traded risk management process includ ing l im it sett ing, risk capture and measurement, lim it mon itor ing and escalat ion, risk mit igat ion and stress testing. Polic ies are rev iewed and approved by the Global Head, Traded Risk Management period ically to ensure the ir ongoing effectiveness. Market Risk measurement The Group uses a VaR model to measure the risk of losses aris ing from future potent ial adverse movements in market rates, prices, and volatil it ies. VaR is a quantitat ive measure of market risk that applies recent histor ical market cond it ions to estimate the potential future loss in market value that will not be exceeded in a set time period at a set statist ical conﬁdence level. VaR provides a consistent measure that can be applied across trading businesses and products over time and can be set against actual daily trading proﬁt and loss outcomes. For day-to-day risk management, VaR is calculated as at the close of business, generally at UK time for expected market movements over one business day and to a conﬁdence level of 97.5 per cent. Intra-day risk levels may vary from those reported at the end of the day. The Group applies two VaR methodologies: • Histor ical s imulat ion: th is involves the revaluation of all exist ing pos it ions to reﬂect the effect of h istor ically observed changes in Market Risk factors on the valuation of the current portfolio. This approach is applied for general Market Risk factors and the major ity of spec if ic (cred it spread) risk factors. The enhanced Volatil ity Scal ing VaR (VSV) model went live in January 2025, where risk factors’ returns are scaled to reﬂect histor ical volat il ity. The VSV model is more responsive to volatil ity changes observed in the market. • Monte Carlo simulat ion: th is methodology is sim ilar to histor ical s imulat ion but w ith considerably more input risk factor observations. These are generated by random sampling techniques, but the results retain the essential variab il ity and correlations of histor ically observed r isk factor changes. This approach is applied for capturing the id iosyncrat ic credit spread risk factors. As an input to regulatory capital, trading book VaR is calculated for expected movements over 10 business days and to a conﬁdence level of 99 per cent. Some types of market risk are not captured in the regulatory VaR measure and these risks not in VaR are subject to capital add-ons. An analysis of VaR results in 2024 is available in the ‘Risk proﬁle’ section (pages 247 to 249) . Risk review and Capital review Standard Chartered – Annual Report 2024 203 Counterparty Credit Risk measurement A Potential Future Exposure (PFE) model is used to measure the credit exposure aris ing from the pos it ive mark-to-market of traded products. The PFE model provides a quantitat ive estimate of future potential movements in market rates, prices, and volatil it ies at a certain conﬁdence level over different time horizons based on the tenor of the transactions. The Group applies two PFE methodologies: simulat ion based, which is predominantly used, and an add-on based PFE methodology. Monitor ing Traded Risk Management monitors the overall portfolio risk and ensures that it is with in spec if ied l im its and therefore RA. Lim its are typ ically reviewed twice a year. All material Traded Risks are monitored daily against approved lim its. Traded R isk lim its apply at all t imes unless separate intra-day lim its have been set. Treasury Risk Mit igat ion The Group develops polic ies to address mater ial Treasury Risks and aims to mainta in its risk proﬁle with in RA. In order to do this, metrics are set against Capital Risk, Liqu id ity and Funding Risk and IRRBB. Where appropriate, RA metrics are cascaded down to clusters and countries in the form of lim its and management action triggers. Capital Risk In order to manage Capital Risk, strategic business and capital plans (Corporate Plan) are drawn up covering a ﬁve-year horizon and are approved by the Board annually. The plan ensures that adequate levels of capital, includ ing loss- absorbing capacity, and an efﬁc ient m ix of the different components of capital are mainta ined to support our strategy and business plans. Treasury is responsible for the ongoing assessment of the demand for capital and the updating of the Group’s capital plan. RA metrics includ ing cap ital, leverage, min imum requ irement for own funds and elig ible l iab il ity (MREL) and double leverage are assessed with in the Corporate Plan to ensure that the strategy can be achieved with in r isk tolerances. Structural Foreign Exchange (FX) Risk The Group’s structural FX posit ion results from the Group’s non-US dollar investment in the share capital and reserves of subsid iar ies and branches. The FX translation gains or losses are recorded in the Group’s translation reserves with a direct impact on the Group’s Common Equity Tier 1 ratio. The Group contracts hedges to manage its structural FX posit ion in accordance with the RA, and as a result the Group has taken net investment hedges to partially cover its exposure to certain non-US dollar currencies to mit igate the FX impact of such posit ions on its capital ratios. Our structural foreign exchange exposures can be found on page 249 . Liqu id ity and Funding Risk At Group, cluster and country level we implement various business-as-usual and stress risk metrics to monitor and manage Liqu id ity and Funding risk. This ensures that the Group mainta ins an adequate and well-d ivers iﬁed l iqu id ity buffer, as well as a stable funding base, to meet its liqu id ity and funding regulatory requirements. The risk management approach and RA are assessed annually through the Internal Liqu id ity Adequacy Assessment Process. A funding plan is also developed for efﬁc ient l iqu id ity projections to ensure that the Group is adequately funded in the required currencies, to meet its obligat ions and cl ient funding needs. The funding plan is part of the overall Corporate Plan process align ing to the cap ital requirements. Further detail on Liqu id ity and Funding Risk can be found on pages 250 to 253 . Interest Rate Risk in the Banking Book This risk arises from differences in the repric ing proﬁle, interest rate basis, and optional ity of bank ing book assets, liab il it ies and off-balance sheet items. IRRBB represents an economic and commercial risk to the Group and its capital adequacy. The Group monitors IRRBB against the RA. Further detail on IRRBB can be found on page 254 . Pension Risk Pension Risk is the potential for loss due to having to meet an actuarially assessed shortfall in the Group’s pension plans. Pension Risk arises from the Group’s contractual or other liab il it ies w ith respect to its occupational pension plans or other long-term beneﬁt obligat ion. For a funded plan, it represents the risk that addit ional contr ibut ions w ill need to be made because of a future funding shortfall. For unfunded obligat ions, it represents the risk that the cost of meeting future beneﬁt payments is greater than currently antic ipated. The Pension Risk is monitored against the RA and reported to the GRC. The RA metric is calculated as the total capital requirement (includ ing both P illar 1 and Pillar 2A capital) in respect of Pension Risk, expressed as a number of basis points of RWA. Recovery and resolution planning In line with PRA requirements, the Group mainta ins a Recovery Plan, which is a live document to be used by management in the event of stress in order to restore the Group to a stable and sustainable posit ion. The Recovery Plan includes a set of recovery ind icators, an escalat ion framework, and a set of management actions capable of being implemented during a stress. A Recovery Plan is also mainta ined w ith in each major entity, and all Recovery Plans are subject to period ic ﬁre- drill testing. As the UK resolution authority, the BoE set a single point of entry bail-in at the ultimate holding company level (Standard Chartered PLC) as the preferred resolution strategy for the Group. In support of this strategy, the Group has a set of capabil it ies, arrangements, and resources in place to mainta in, test and improve resolution capabil it ies, and continue to meet the required resolvabil ity outcomes on an ongoing basis. Following the BoE’s ﬁrst resolvabil ity assessment and publ ic disclosure for major UK ﬁrms in 2022, the Group submitted its Resolvabil ity Self-Assessment Report to the BoE and PRA, and subsequently published its resolvabil ity publ ic disclosure in August 2024 as part of the second Resolvabil ity Assessment Framework cycle. Risk review Risk management approach 204 Standard Chartered – Annual Report 2024 Monitor ing On a day-to-day basis, Treasury Risk is managed by Treasury, Finance and country CEOs. The Group regularly reports and monitors Treasury Risk inherent in its business activ it ies and those that arise from internal and external events. Internal risk management reports covering the balance sheet and the capital and liqu id ity posit ion are presented to the relevant country Asset and Liab il ity Committee. The reports contain key informat ion on balance sheet trends, exposures against RA and supporting risk measures which enable members to make informed decis ions around the overall management of the balance sheet. In addit ion, an independent Treasury CRO with in ERM rev iews the prudency and effectiveness of Treasury Risk management. Pension Risk is managed by the Head of Pensions and Reward Analytics, and monitored by the Global Head, ERM on a period ic bas is. Operational and Technology Risk Mit igat ion The Operational and Technology RTF sets out the Group’s overall approach to the management of Operational and Technology Risk in line with the Group’s Operational and Technology RA. This is supported by the Risk and Control Self-Assessment (RCSA), which provides a systematic approach for ident iﬁcation and assessment of operat ional risks, includ ing des ign and operation of mit igat ing controls (applicable to all risks as per the Non-Financ ial Risk Taxonomy). The RCSA is used to determine the design and operating effectiveness of each process, and requires: • the recording of end-to-end processes which deliver our key client journey and business outcomes • the ident iﬁcation of r isks to support the achievement of client and business outcomes • the assessment of inherent risk on the impact to client and business outcomes, and likel ihood of occurrence • the design and monitor ing of key controls to effect ively and efﬁciently m it igate pr ior it ised risks with in acceptable levels and • the assessment of residual risk and timely treatment of elevated risks. Elevated Residual Risks require treatment plans to address the underlying causes and reduce the risks to with in the RA. Monitor ing To deliver services to clients and to partic ipate in the ﬁnanc ial services sector, the Group runs processes which are exposed to Operational and Technology risks. The Group prior it ises and manages risks which are sign iﬁcant to our cl ients and to the ﬁnancial serv ices sectors. The control ind icators are regularly monitored to determine the Group’s exposure to residual risk. The residual risk assessments and reporting of events form the Group’s Operational and Technology Risk proﬁle. The completeness of the Operational and Technology Risk proﬁle ensures appropriate prior it isat ion and t imel iness of risk decis ions, includ ing r isk acceptances with treatment plans for risks that exceed acceptable thresholds. The BRC is informed on adherence to Operational and Technology RA through metrics reported for selected risks. These metrics are monitored, and escalation thresholds are devised based on the material ity and s ign iﬁcance of the risk. These Operational and Technology RA metrics are consolidated on a regular basis and reported at the relevant Group committees, provid ing sen ior management with the relevant informat ion to inform their risk decis ions. Information and Cyber Security (ICS) Risk Mit igat ion ICS Risk is managed through the ICS RTF, compris ing a r isk assessment methodology and supporting policy, standards, and methodologies. The ICS Policy and standards are aligned to industry best practice models includ ing the National Institute of Standards and Technology Cyber Security Framework and ISO 27001. We undertake an annual ICS Effectiveness Review to evaluate ICS Risk management practices in alignment with the ERMF. Monitor ing The Group Chief Information Security Ofﬁcer (CISO) function monitors the evolving threat landscape covering cyber threats, attack vectors and threat actors that could target the Group. This includes performing a threat-led risk assessment to ident ify key threats, in-scope applicat ions and key controls required to ensure the Group remains with in RA. The ICS Risk proﬁles of all businesses, functions and countries are consolidated to present a holist ic Group-level ICS R isk proﬁle for ongoing monitor ing. Mandatory ICS learn ing, phish ing exerc ises and role-specif ic tra in ing support colleagues to monitor and manage this risk. During these reviews, the status of each risk is assessed against the Group’s controls to ident ify any changes to impact and likel ihood, wh ich affects the overall risk rating. The Group stress tests its cyber posture through extensive control testing and by executing offensive security testing exercises, includ ing vulnerab il ity test ing, code reviews, penetration tests and Red Team attack simulat ion test ing. This testing approach constantly stress tests the Group’s defence and approach to cyber security. These show a wider picture of the Group’s risk proﬁle, leading to better vis ib il ity on potential ‘in ﬂight’ risks. The Group also tracks remediat ion of security matters ident iﬁed by external rev iews, such as the BoE CBEST Threat Intelligence-Led Assessment and the Hong Kong Monetary Authority’s (HKMA) Intelligence-led Cyber Attack Simulat ion Test ing (iCAST). The CISO and OTCR functions monitor the ICS Risk proﬁle and ensure that breaches of RA are escalated to the appropriate governance committee or authority levels for remediat ion and tracking. Risk review and Capital review Standard Chartered – Annual Report 2024 205 Financ ial Cr ime Risk Roles and responsib il it ies The Group Head, CFCR is the Group’s Compliance and Money-Laundering Reporting Ofﬁcer and performs the Financ ial Conduct Author ity (FCA) controlled function and senior management function in accordance with requirements set out by the FCA, includ ing those set out in their handbook on systems and controls. Mit igat ion The CFCR function is responsible for the establishment and maintenance of polic ies, standards, and overs ight of ﬁrst line of defence controls to ensure continued compliance with ﬁnancial cr ime laws and regulations, and the mit igat ion of Financ ial Cr ime Risk. In this, the requirements of the Operational and Technology RTF are followed to ensure a consistent approach to the management of processes and controls. Financ ial Cr ime Risk management is built on a risk-based approach, meaning the risk management plans, processes, activ it ies, and resource allocations are determined according to the level of risk. Risk mit igat ion takes place through the process of ident iﬁcation of new and amended regulat ions and the implementat ion of necessary process and control changes to address these. Monitor ing The Group monitors enterprise-wide ﬁnanc ial cr ime risks through the Financ ial Cr ime Risk Assessment. This is undertaken annually to assess the inherent ﬁnanc ial cr ime risk exposures and the associated processes and controls by which these exposures are mit igated. Financ ial Cr ime Risk controls are governed in line with the Operational and Technology RTF. The Group has a monitor ing and reporting process in place for Financ ial Cr ime Risk, which includes escalation and reporting to the CFCR and relevant risk committees. While not a formal governance committee, the CFCR Oversight Group provides oversight of CFCR risks includ ing the effective implementat ion of the F inanc ial Cr ime RTF. It also provides oversight, challenge and direct ion to CFCR policy owners on material changes and posit ions taken in CFCR-owned polic ies, includ ing issues relating to regulatory interpretat ion and Group’s CFCR RA. The Regulatory Change Oversight Forum provides vis ib il ity and overs ight of material and/or complex large-scale regulatory change emanating from ﬁnanc ial serv ices regulators impact ing non-ﬁnancial r isks. Further details on how we manage ﬁnanc ial cr ime can be found on page 96 . Compliance Risk Roles and responsib il it ies All activ it ies that the Group engages in must comply with the relevant country/local specif ic and extraterr itor ial regulat ions. Compliance Risk includes the risks associated with a failure to comply with all regulations that are applicable to the Group regardless of the issu ing regulatory author ity. Where Compliance Risk arises, or could arise, from failure to manage another PRT, the oversight and management processes for that specif ic PRT must be followed, to ensure that effect ive oversight and challenge of the ﬁrst line of defence can be provided by the appropriate second line of defence function. Areas of regulation can be broadly div ided into two dist inct categories: those issued by ﬁnanc ial serv ice regulatory authorit ies and those issued by non-ﬁnanc ial serv ice regulators. The Group is exposed to both categories of regulation, and roles and responsib il it ies d iffer depending on the category. For regulations issued by ﬁnanc ial serv ices regulatory authorit ies and other regulators that may issue regulations pertain ing to Compl iance Risk, CFCR ident iﬁes new and amended regulations as and when issued and communicates the relevant regulatory obligat ions to the country RFO delegate. The areas where CFCR does not act in a second line of defence capacity are specif ied in the respective RTF with appropriate ownership. Each of the assigned second line of defence functions have responsib il it ies, includ ing mon itor ing relevant regulatory developments from non-ﬁnancial serv ices regulators at both Group and country levels, policy development, implementat ion, and val idat ion as well as overs ight and challenge of ﬁrst line of defence processes and controls. Mit igat ion The CFCR function is responsible for the establishment and maintenance of polic ies, standards, and overs ight of the ﬁrst line of defence controls to ensure compliance with laws and regulations, and the mit igat ion of Compliance Risk. In this, the requirements of the Operational and Technology RTF are followed to ensure a consistent approach to the management of processes and controls. Monitor ing The monitor ing of controls des igned to mit igate the r isk of regulatory non-compliance in processes is governed in line with the Operational and Technology RTF. Compliance Risk reporting includes escalation and reporting to the CFCR and relevant risk committees. While not a formal governance committee, the CFCR Oversight Group provides oversight of CFCR, risks includ ing the effective implementat ion of the Compl iance RTF, and oversight, challenge and direct ion to CFCR pol icy owners on material changes and posit ions taken in CFCR-owned polic ies, includ ing issues relating to regulatory interpretat ion and the Group’s CFCR RA. The Regulatory Change Oversight Forum provides vis ib il ity and overs ight of material and/or complex large-scale regulatory change emanating from ﬁnanc ial services regulators impact ing non-ﬁnancial r isks. Risk review Risk management approach 206 Standard Chartered – Annual Report 2024 Environmental, Social and Governance and Reputational (ESGR) Risk Mit igat ion The ESGR RTF provides the overall risk management approach for Environmental, Social and Governance (ESG) and Reputational risks. The ESG Risk policy outlines the Group’s commitment to integrat ing ESG cons iderat ions into its business, operations, and decis ion-mak ing process. The policy sets out the requirements for ident ify ing, assessing, and managing ESG risks, includ ing Cl imate Risk. The Reputational Risk policy sets out the princ ipal sources of reputational risk driven by negative shifts in stakeholder perceptions, as well as the responsib il it ies for manag ing Reputational Risk aris ing out of cl ient onboarding and due dil igence, from transact ions, product design and product features, or strategic coverages such as exposure to sensit ive industr ies, markets, or investments. Whenever potential for stakeholder concerns is ident iﬁed, issues are subject to review and decis ion by both the ﬁrst and second l ines of defence. The Reputational Risk policy also sets out the key considerat ions for m it igat ing greenwashing risk that can arise during product and/or deal lifecycle, sustainab il ity reporting and disclosures, and external campaigns related to sustainab il ity themes. Monitor ing Exposure to reputational risks aris ing from transact ions, clients, products and strategic coverage is monitored through established triggers to prompt the appropriate risk-based considerat ions and assessment by the ﬁrst l ine of defence and escalations to the second line of defence. Risk acceptance decis ions and themat ic trends are also reviewed on a period ic bas is. Exposure to ESG Risks is monitored through triggers embedded with in the ﬁrst l ine of defence processes. The environmental and social risks are considered for clients and transactions via Environmental and Social Risk Assessments and/or Climate Risk Assessments (CRAs). Vendors that are presenting as high risk are assessed for modern slavery risk. Based on responses provided by the supplier at onboarding, those that meet the high-risk category-country combinat ions are subjected to further risk assessment. Exposure to Climate Risk is monitored in conjunct ion w ith other PRTs. We have embedded qualitat ive and quant itat ive climate considerat ions into the Group’s Credit Underwrit ing Princ iples for O il and Gas, Min ing, Sh ipp ing, Commerc ial Real Estate and Project Finance portfolio. We have expanded coverage of Climate and Credit Risk considerat ions to phys ical collateral, as they serve as key risk mit igants, espec ially in default events. We assess physical risk concentrations for our WRB portfolio on a quarterly basis and assess the physical risk vulnerabil it ies of our sites period ically and when new s ites are onboarded. Our Net Zero Climate Risk Working Forum meets quarterly to discuss account plans for high climate risk and net zero divergent clients. Stress testing and scenario analysis are used to assess the impact of ESGR-related risks. The impact on capital requirements has been included in the PLC Group Internal Capital Adequacy Assessment Process. Management informat ion is reviewed at a quarterly frequency and any breaches in RA are reported to the GRC and BRC. Model Risk Mit igat ion The Model Risk Policy and Standards deﬁne requirements for model development, validat ion, implementat ion and use, includ ing regular model performance mon itor ing and, where required, model risk mit igants. Model deﬁcienc ies ident iﬁed through the development or validat ion process, or model performance issues ident iﬁed through ongoing monitor ing, are m it igated through respective model risk mit igants. M it igants include model overlays as either post-model adjustments (PMAs) or management adjustments, model restrict ions and potent ially a model recalibrat ion or redevelopment, all of wh ich undergo independent review, challenge, and approval. PMAs are used to address observed deﬁcienc ies caused from with in the model, by adjusting the model output e ither directly or ind irectly (e.g. adjusting parameters). Where a PMA is applied as a mit igant for a model used in Pillar 1 or Pillar 2 calculations or models with material impact on ﬁnanc ial account ing disclosures (e.g. IFRS 9), the independent review must be performed by Group Model Validat ion (GMV) w ith sign-off from the Model Approver prior to implementat ion. Management adjustments are used to address issues by applying management decis ions w ithout adjust ing a d irect modelling component. As with all PRTs, operational controls are used to govern all Model Risk-related processes, with regular risk assessments performed to assess appropriateness and effectiveness of those controls, in line with the Operational and Technology RTF, with remediat ion plans implemented where necessary. Group Model Risk Policy and Standards also deﬁne requirements for determin ist ic quantitat ive methods (DQMs) that are used as part of an end-to-end modelled process. DQMs are sim ilar in nature to a model, however the processing component is either purely determin ist ic or has an element of expert judgement. Unlike a model, there is no use of statist ical, econom ic ﬁnanc ial or mathemat ical theories. The regulatory framework around Model Risk is continuously evolving, the PRA’s Supervisory Statement 1/23 (SS1/23) is an example. The Group proactively monitors regulatory changes to take the required actions timely for compliance. Regarding SS1/23, the Group is currently deliver ing to a roadmap to compliance, which commenced in 2024 and will continue over the next two years. Monitor ing The Group monitors Model Risk via a set of RA metrics. Adherence to Model RA and any threshold breaches are reported to the BRC, GRC and MRC. These metrics and thresholds are reviewed twice per year to ensure that threshold calibrat ion rema ins appropriate, and the themes adequately cover the current risks. Models undergo regular performance monitor ing based on their level of perceived Model Risk, with monitor ing results presented, and breaches escalated to the Model Sponsor, Model Owner, GMV and respective MRC or Indiv idual Delegated Model Approvers. Model Risk management produces Model Risk reports covering the model landscape, which include performance metrics, ident iﬁed model issues and remediat ion plans. These are presented for discuss ion at the Model R isk governance committees on a regular basis. Risk proﬁle Credit Risk (audited) Basis of preparation Unless otherwise stated, the balance sheet and income statement informat ion presented w ith in th is section is based on the Group’s management view. This is princ ipally the location from which a client relationsh ip is managed, which may differ from where it is ﬁnanc ially booked and may be shared between businesses and/or regions. This view reﬂects how the client segments and regions are managed internally. Loans and advances to customers and banks held at amortised cost in this ‘Risk proﬁle’ section include reverse repurchase agreement balances held at amortised cost, per Note 16 Reverse repurchase and repurchase agreements includ ing other s im ilar secured lend ing and borrowing. Credit Risk overview Credit Risk is the potential for loss due to the failure of a counterparty to meet its contractual obligat ions to pay the Group. Credit exposures arise from both the banking and trading books. Impairment model IFRS 9 mandates an impa irment model that requ ires the recognit ion of expected cred it losses (ECL) on all ﬁnanc ial debt instruments held at amortised cost, Fair Value through Other Comprehensive Income (FVOCI), undrawn loan commitments and ﬁnanc ial guarantees. Staging of ﬁnanc ial instruments Financ ial instruments that are not already credit-impa ired are orig inated into stage 1 and a 12-month ECL provis ion is recognised. Instruments will remain in stage 1 until they are repaid, unless they experience sign iﬁcant cred it deteriorat ion (stage 2) or they become credit-impa ired (stage 3). Instruments will transfer to stage 2 and a lifet ime ECL provis ion is recognised when there has been a sign iﬁcant change in the Credit Risk compared to what was expected at orig inat ion. The framework used to determine a Sign iﬁcant Increase in Credit Risk (SICR) is set out below. Stage 1 Stage 2 Stage 3 • 12-month ECL • Lifet ime expected cred it loss • Credit-impa ired • Performing • Performing but has exhib ited SICR • Non-performing IFRS 9 ECL princ iples and approaches The main methodology princ iples and approach adopted by the Group are set out in the following table. Title Supplementary Information Page Approach for determin ing ECL • IFRS 9 ECL methodology 236 • Applicat ion of l ifet ime ECL 236 Key assumptions and judgements in determin ing ECL • Incorporation of forward-looking informat ion 238 • Forecast of key macroeconomic variables underlying the 238 ECL calculation and the impact of non-linear ity • Impact of multiple economic scenarios 241 • Judgemental adjustments and management overlays 241 • Sensit iv ity of ECL calculation to macroeconomic variables 242 Sign iﬁcant increase in Credit risk (SICR) • Quantitat ive and qual itat ive cr iter ia 244 Assessment of credit-impa ired ﬁnancial assets • Wealth and Retail Banking (WRB) clients 245 • Corporate and Investment Banking (CIB) and Private 245 Banking clients • Write-offs 245 Transfers between stages • Movement in gross exposures and credit impa irment 219 Modif ied ﬁnancial assets • Forborne and other modif ied loans 226 Governance of PMAs and applicat ion of expert cred it • IFRS 9 Impairment Committee 246 judgement in respect of ECL Summary of Credit Risk performance Maximum exposure The Group’s on-balance sheet maximum exposure to Credit Risk increased by $25 bill ion to $823 b ill ion (31 December 2023: $798 bill ion). Cash and balances at Central banks decreased by $6.5 bill ion to $63 b ill ion (31 December 2023: $70 b ill ion) due to reduced placements. Loans to banks held at amortised cost decreased by $1.4 bill ion to $44 b ill ion (31 December 2023: $45 bill ion). Fa ir value through proﬁt and loss increased by $27.8 bill ion to $172 b ill ion (31 December 2023: $144 b ill ion), largely due to increases in debt securit ies and reverse repos, but this was partially offset by a $16.7 bill ion reduct ion in debt securit ies not held at fa ir value through proﬁt and loss. Loans and advances to customers decreased by $5.9 bill ion to $281 bill ion (31 December 2023: $287 b ill ion), due to a reduct ion in mortgages in Korea, Singapore and Hong Kong, given continued headwinds, includ ing fore ign currency movements. Risk review and Capital review Standard Chartered – Annual Report 2024 207 Risk review Risk proﬁle 208 Standard Chartered – Annual Report 2024 Loans and advances to customers in the CIB segment increased by $7.6 bill ion, ma inly due to the execution of pipel ine deals in Global Banking, but this was offset by a $7.4 bill ion decrease in Central and other items. Derivat ive ﬁnancial instruments increased by $31 bill ion to $81 b ill ion (31 December 2023: $50 bill ion). Off-balance sheet instruments increased by $16 bill ion to $273 b ill ion (31 December 2023: $257 bill ion), due to an increase in ﬁnanc ial guarantees and other equivalents, which was driven by new business. Further details can be found in the ‘Maximum exposure to Credit Risk’ section on page 209 ; ‘Credit quality by client segment’ section on page 212 . Loans and advances 94 per cent (31 December 2023: 94 per cent) of the Group’s gross loans and advances to customers remain in stage 1 at $269 bill ion (31 December 2023: $274 b ill ion), reﬂect ing our continued focus on high-quality orig inat ion. For WRB, stage 1 balances decreased by $6.5 bill ion to $117 b ill ion (31 December 2023: $123 bill ion), of wh ich $5.9 bill ion was ma inly due to a reduction in the mortgage portfolios in Korea, Singapore and Hong Kong, mainly driven by slower booking momentum and higher attrit ion as a result of intense interest rate competit ion. For CIB, stage 1 balances increased by $8 bill ion to $129 b ill ion (31 December 2023: $121 bill ion) ma inly driven by the Energy, Financ ing, Insurance and Transport sectors. For Central and other items, stage 1 balances decreased by 6.3 bill ion to $22 bill ion (31 December 2023: $28 b ill ion) due to a reduct ion in exposures to the Government sector, across a number of our markets. Stage 2 loans and advances to customers decreased by $0.6 bill ion to $11 b ill ion (31 December 2023: $11 b ill ion). For WRB, stage 2 balances decreased by $0.4 bill ion to $1.9 b ill ion (31 December 2023: $2.3 bill ion), due to decrease in the mortgage portfolio. For Central and other items, higher risk exposures decreased by $0.9 bill ion to $0.1 b ill ion (31 December 2023: $1 bill ion), was due to the matur ity of short-term loan exposures that were replaced with debt securit ies in Pakistan. Stage 3 loans and advances decreased by $1 bill ion to $6.2 bill ion (31 December 2023: $7.2 b ill ion) due to debt sales, repayments, write-offs and upgrades to Stage 2 loans in CIB. WRB stage 3 balances remained broadly stable at $1.6 bill ion (31 December 2023: $1.5 bill ion). For Central and other items, stage 3 balances decreased by $0.1 bill ion to $0.1 b ill ion (31 December 2023: $0.2 bill ion). Further details can be found in the ‘Analysis of ﬁnanc ial instruments by stage’ section on page 210 ; ‘Credit quality by client segment’ section on page 212 ; ‘Credit quality by industry’ section on page 230 . Analysis of Stage 2 The key SICR driver which caused exposures to be classif ied as stage 2 remains an increase in probabil ity of default (PD). The proportion of CIB exposures in stage 2 decreased due to a reduction in clients placed on non-purely precautionary early alert that have not breached PD thresholds. In WRB, the exposures in stage 2 loans with more than 30 days past due remained stable at $0.3 bill ion (31 December 2023: $0.3 b ill ion). In Central and other items, the $0.5 bill ion decrease in CG12 balances to $1.5 bill ion (31 December 2023: $2 b ill ion) was due to the maturity of short-term loan exposures that were replaced with debt securit ies in Pakistan. ‘Others’ category includes exposures where orig inat ion data is incomplete and the exposures are allocated into stage 2. Further details can be found in the ‘Credit quality by client segment’ section in page 212 ; ‘Analysis of stage 2 balances’ section on page 225. Credit impa irment charges The Group’s ongoing credit impa irment was a net charge of $547 mill ion (31 December 2023: $508 m ill ion). WRB contributed a net charge of $644 mill ion (31 December 2023: $354 mill ion), dr iven by a higher interest rate environment impact ing repayments on cred it cards and personal loans and to a few non-repeating ECL releases recorded in 2023. The increase in impa irments was also due to the maturity and portfolio growth of dig ital partnersh ips in China and Indonesia, as well as a $21 mill ion overlay aris ing from the settlement fa ilure of two e-commerce platforms in Korea. CIB contributed a net release of $106 mill ion (31 December 2023: $123 mill ion charge) due to a number of stage 3 releases and repayments. Further details can be found in the ‘Financ ial rev iew‘ section on page 51 ; ‘Credit impa irment charge’ sect ion on page 226 . Commercial Real Estate (CRE) The Group provides loans to CRE counterparties of which $8.8 bill ion is to counterparties in the CIB segment where the source of repayment is substantially derived from rental or sale of real estate and is secured by real estate collateral. The remain ing CRE loans compr ise working capital loans to real estate corporates, loans with non-property collateral, unsecured loans and loans to real estate entit ies of d ivers iﬁed conglomerates. The average LTV ratio of the performing book CRE portfolio has increased to 54 per cent (31 December 2023: 52 per cent). The proportion of loans with an LTV greater than 80 per cent has increased to 4 per cent (31 December 2023: 3 per cent). China CRE Total exposure to China CRE decreased by $0.6 bill ion to $2 bill ion (31 December 2023: $2.6 b ill ion) ma inly from exposure reductions. The proportion of credit impa ired exposures increased to 70 per cent (31 December 2023: 58 per cent) due to repayments with in the non-cred it impa ired portfol io. The overall provis ion coverage increased to 87 per cent (31 December 2023: 72 per cent), reﬂecting increased provis ion charges during the year. The proportion of the loan book rated as Higher Risk increased to 3 per cent (31 December 2023: 0.3 per cent) primar ily due to downgrades dur ing the year. The Group continues to hold a judgemental management overlay, which decreased by $71 mill ion to $70 m ill ion (31 December 2023: $141 mill ion), reﬂect ing repayments and util isat ions during the year. The Group is further ind irectly exposed to Ch ina CRE through its associate investment in China Bohai Bank. Further details can be found in the ‘China commercial real estate’ section on page 234 ; ‘Judgemental adjustments’ section on page 241 . High carbon sectors With the Group’s expansion in the asset-backed lending business, the total on-and-off balance sheet exposure for the Aviat ion sector increased to $2.6 bill ion (31 December 2023: $1.9 bill ion), wh ile the Shipp ing sector decreased to $4.6 bill ion (31 December 2023: $5 b ill ion). The Group’s pos it ion statements mandates that for newer vessels and aircraft, only carbon efﬁcient ones can be ﬁnanced. While exposures to the Oil and Gas sector increased to $21 bill ion (31 December 2023: $20 b ill ion) due to increased funding towards more emiss ions-efﬁcient counterpart ies, exposures to the Power sector increased to $11 bill ion (31 December 2023: $9 bill ion) due to increased lending to renewables and efﬁcient gas generat ion counterparties. Further details on net zero targets and progress in managing transit ion risk of the high carbon sectors can be found in the ‘Sustainab il ity review’ section on page 57 ; ‘High carbon sectors’ section on page 232 . Risk review and Capital review Standard Chartered – Annual Report 2024 209 Maximum exposure to Credit Risk (audited) The table below presents the Group’s maximum exposure to Credit Risk for its on-balance sheet and off-balance sheet ﬁnanc ial instruments as at 31 December 2024, before and after taking into account any collateral held or other Credit Risk mit igat ion. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . 2024 2023 Credit risk management Credit risk management Master Master Maximum netting Net Maximum netting Net exposure Collateral 8 agreements Exposure exposure Collateral 8 agreements Exposure $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion On-balance sheet Cash and balances at central banks 63,447 – – 63,447 69,905 – – 69,905 Loans and advances to banks 1 43,593 2,946 40,647 44,977 1,738 43,239 of which – reverse repurchase agreements and other sim ilar secured lending 7 2,946 2,946 – – 1,738 1,738 – – Loans and advances to customers 1 281,032 119,047 – 161,985 286,975 118,492 168,483 of which – reverse repurchase agreements and other sim ilar secured lending⁷ 9,660 9,660 – – 13,996 13,996 – – Investment securit ies – Debt secur it ies and other elig ible b ills 2 143,562 143,562 160,263 – – 160,263 Fair value through proﬁt or loss 3, 7 172,031 86,195 – 85,836 144,276 81,847 – 62,429 Loans and advances to banks 2,213 – – 2,213 2,265 – – 2,265 Loans and advances to customers 7,084 – – 7,084 7,212 – – 7,212 Reverse repurchase agreements and other sim ilar lend ing 7 86,195 86,195 – – 81,847 81,847 – – Investment securit ies – Debt secur it ies and other elig ible b ills 2 76,539 – – 76,539 52,952 – – 52,952 Derivat ive ﬁnancial instruments 4, 7 81,472 15,005 60,280 6,187 50,434 8,440 39,293 2,701 Accrued income 2,776 – – 2,776 2,673 – – 2,673 Assets held for sale 9 889 – – 889 701 – – 701 Other assets 5 34,585 – – 34,585 38,140 – – 38,140 Total balance sheet 823,387 223,193 60,280 539,914 798,344 210,517 39,293 548,534 Off-balance sheet 6 Undrawn Commitments 182,529 2,489 – 180,040 182,390 2,940 – 179,450 Financ ial Guarantees and other equivalents 90,632 1,807 – 88,825 74,414 2,590 – 71,824 Total off-balance sheet 273,161 4,296 – 268,865 256,804 5,530 – 251,274 Total 1,096,548 227,489 60,280 808,779 1,055,148 216,047 39,293 799,808 1 Amounts are net of ECL provis ions. An analys is of credit quality is set out in the credit quality analysis section (page 212). Further details of collateral held by client segment and stage are set out in the collateral analysis section (page 227). The Group also has credit mit igat ion through Credit Linked Notes as set out on page 229 2 Excludes equity and other investments of $994 mill ion (31 December 2023: $992 m ill ion). Further deta ils are set out in Note 13 ﬁnanc ial instruments 3 Excludes equity and other investments of $5,486 mill ion (31 December 2023: $2,940 m ill ion). Further deta ils are set out in Note 13 ﬁnanc ial instruments 4 The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of the posit ive and negat ive mark-to-market values of applicable derivat ive transact ions 5 Other assets include Hong Kong certif icates of indebtedness, cash collateral, and acceptances, in addit ion to unsettled trades and other ﬁnancial assets 6 Excludes ECL provis ions of $255 m ill ion (31 December 2023: $227 m ill ion) wh ich are reported under Provis ions for l iab il it ies and charges 7 Collateral capped at maximum exposure (over-collateralised) 8 Adjusted for over-collateralisat ion, wh ich has been determined with reference to the drawn and undrawn component as this best reﬂects the effect on the amount aris ing from expected cred it losses 9 The amount is after ECL. provis ions. Further deta ils are set out in Note 21 Assets held for sale and associated liab il it ies Risk review Risk proﬁle 210 Standard Chartered – Annual Report 2024 Analysis of ﬁnanc ial instruments by stage (audited) The table below presents the gross and credit impa irment balances by stage for the Group’s amort ised cost and FVOCI ﬁnancial instruments as at 31 December 2024. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . 2024 Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit Net credit Net credit Net credit Net Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying balance 1 ment value balance 1 ment value balance 1 ment value balance 1 ment value $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Cash and balances at central banks 62,597 – 62,597 432 (4) 428 426 (4) 422 63,455 (8) 63,447 Loans and advances to banks (amortised cost) 43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593 Loans and advances to customers (amortised cost) 269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032 Debt securit ies and other elig ible b ills 5 141,862 (23) 1,614 (4) 103 (2) 143,579 (29) Amortised cost 54,637 (15) 54,622 475 (2) 473 42 – 42 55,154 (17) 55,137 FVOCI 2 87,225 (8) 1,139 (2) 61 (2) 88,425 (12) – Accrued income (amortised cost) 4 2,776 2,776 – – 2,776 – 2,776 Assets held for sale 4 840 (7) 833 38 – 38 58 (45) 13 936 (52) 884 Other assets 34,585 – 34,585 – – – 3 (3) – 34,588 (3) 34,585 Undrawn commitments 3 178,516 (50) 4,006 (52) 7 (1) 182,529 (103) Financ ial guarantees, trade credits and irrevocable letter of credits 3 87,991 (16) 2,038 (7) 603 (129) 90,632 (152) Total 821,477 (589) 19,077 (541) 7,486 (4,137) 848,040 (5,267) 1 Gross carrying amount for off-balance sheet refers to notional values 2 These instruments are held at fair value on the balance sheet. The ECL provis ion in respect of debt securit ies measured at FVOCI is held with in the OCI reserve 3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a ﬁnanc ial l iab il ity and therefore there is no “net carrying amount”. ECL allowances on off-balance sheet instruments are held as liab il ity provis ions to the extent that the drawn and undrawn components of loan exposures can be separately ident iﬁed. Otherw ise they will be reported against the drawn component 4 Stage 1 ECL is not material 5 Stage 3 gross includes $59 mill ion (31 December 2023: $80 m ill ion) or ig inated cred it-impa ired debt secur it ies w ith impa irment of $N il mill ion (31 December 2023: $14 mill ion) Risk review and Capital review Standard Chartered – Annual Report 2024 211 2023 Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit Net credit Net credit Net credit Net Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying balance 1 ment value balance 1 ment value balance 1 ment value balance 1 ment value $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Cash and balances at central banks 69,313 – 69,313 207 (7) 200 404 (12) 392 69,924 (19) 69,905 Loans and advances to banks (amortised cost) 44,384 (8) 44,376 540 (10) 530 77 (6) 71 45,001 (24) 44,977 Loans and advances to customers (amortised cost) 273,692 (430) 273,262 11,225 (420) 10,805 7,228 (4,320) 2,908 292,145 (5,170) 286,975 Debt securit ies and other ible b elig ills 5 158,314 (26) 1,860 (34) 164 (61) 160,338 (121) Amortised cost 56,787 (16) 56,771 103 (2) 101 120 (57) 63 57,010 (75) 56,935 FVOCI 2 101,527 (10) 1,757 (32) 44 (4) 103,328 (46) Accrued income (amortised cost) 4 2,673 2,673 – – 2,673 – 2,673 Assets held for sale 4 661 (33) 628 76 (4) 72 1 – 1 738 (37) 701 Other assets 38,139 – 38,139 – – – 4 (3) 1 38,143 (3) 38,140 Undrawn commitments 3 176,654 (52) 5,733 (39) 3 – 182,390 (91) Financ ial guarantees, trade credits and irrevocable letter of credits 3 70,832 (10) 2,910 (14) 672 (112) 74,414 (136) Total 834,662 (559) 22,551 (528) 8,553 (4,514) 865,766 (5,601) 1 Gross carrying amount for off-balance sheet refers to notional values 2 These instruments are held at fair value on the balance sheet. The ECL provis ion in respect of debt securit ies measured at FVOCI is held with in the OCI reserve 3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a ﬁnanc ial l iab il ity and therefore there is no “net carrying amount”. ECL allowances on off-balance sheet instruments are held as liab il ity provis ions to the extent that the drawn and undrawn components of loan exposures can be separately ident iﬁed. Otherw ise they will be reported against the drawn component 4 Stage 1 ECL is not material 5 Stage 3 gross includes $80 mill ion or ig inated cred it-impa ired debt secur it ies w ith impa irment of $14 m ill ion Risk review Risk proﬁle 212 Standard Chartered – Annual Report 2024 Credit quality analysis (audited) Credit quality by client segment For CIB, exposures are analysed by credit grade (CG), which plays a central role in the quality assessment and monitor ing of r isk. All loans are assigned a CG, which is reviewed period ically and amended in light of changes in the borrower’s circumstances or behaviour. CGs 1 to 12 are assigned to stage 1 and stage 2 (performing) clients or accounts, while CGs 13 and 14 are assigned to stage 3 (credit-impa ired) cl ients. Consumer and Business Banking portfolios are analysed by days past due and Private Banking by the type of collateral held. Mapping of credit quality The Group uses the following internal risk mapping to determine the credit quality for loans. Corporate & Investment Banking Private Banking 1 Wealth & Retail Banking 4 Credit quality Internal grade S&P external ratings Regulatory Internal grade descript ion mapping equivalent PD range (%) Internal ratings mapping Strong 1A to 5B AAA/AA+ to 0 to 0.425 Class I and Class IV Current loans (no past BBB-/BB+ 2 dues nor impa ired) Satisfactory 6A to 11C BB to CCC+ 3 0.426 to 15.75 Class II and Class III Loans past due till 29 days Higher risk Grade 12 CCC+ to C 15.751 to 99.999 Stressed Assets Group Past due loans (SAG) Managed 30 days and over till 90 days 1 For Private Banking, classes of risk represent the type of collateral held. Class I represents facil it ies with liqu id collateral, such as cash and marketable secur it ies. Class II represents unsecured/partially secured facil it ies and those with ill iqu id collateral, such as equity in private enterprises. Class III represents facil it ies with resident ial or commerc ial real estate collateral. Class IV covers margin trading facil it ies 2 Banks’ rating: AAA/AA+ to BB+/BB. Sovereigns’ rating: AAA to BB+ 3 Banks’ rating: BB to “CCC+ to C”. Sovereigns’ rating: BB+/BB to B-/CCC+ 4 Wealth & Retail Banking excludes Private Banking. Medium enterprise clients with in Bus iness Banking are managed using the same internal credit grades as CIB The table below sets out the gross loans and advances held at amortised cost, ECL provis ions and expected cred it loss coverage by business segment and stage. ECL coverage represents the ECL reported for each segment and stage as a proportion of the gross loan balance for each segment and stage. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . Risk review and Capital review Standard Chartered – Annual Report 2024 213 Loans and advances by client segment (audited) 2024 Customers Corporate & Wealth & Investment Retail Central & Customer Undrawn Financ ial Banks Banking Banking Ventures other items Total commitments Guarantees Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Stage 1 43,208 128,746 117,015 1,383 21,958 269,102 178,516 87,991 – Strong 31,239 90,725 111,706 1,367 21,540 225,338 162,574 56,070 – Satisfactory 11,969 38,021 5,309 16 418 43,764 15,942 31,921 Stage 2 318 8,643 1,905 48 35 10,631 4,006 2,038 – Strong 8 1,229 1,413 31 – 2,673 994 471 – Satisfactory 125 6,665 155 6 – 6,826 2,862 1,403 – Higher risk 185 749 337 11 35 1,132 150 164 Of which (stage 2): – Less than 30 days past due – 55 155 6 – 216 – – – More than 30 days past due 2 7 337 11 – 355 – – Stage 3, credit-impa ired ﬁnancial assets 83 4,476 1,617 12 98 6,203 7 603 Gross balance¹ 43,609 141,865 120,537 1,443 22,091 285,936 182,529 90,632 Stage 1 (10) (80) (383) (20) – (483) (50) (16) – Strong (7) (28) (325) (18) – (371) (33) (7) – Satisfactory (3) (52) (58) (2) – (112) (17) (9) Stage 2 (1) (303) (147) (23) – (473) (52) (7) – Strong – (41) (70) (14) – (125) (10) – – Satisfactory (1) (218) (32) (3) – (253) (32) (4) – Higher risk – (44) (45) (6) – (95) (10) (3) Of which (stage 2): – Less than 30 days past due – (1) (32) (3) – (36) – – – More than 30 days past due – – (45) (6) – (51) – – Stage 3, credit-impa ired ﬁnancial assets (5) (3,178) (759) (11) – (3,948) (1) (129) Total credit impa irment (16) (3,561) (1,289) (54) – (4,904) (103) (152) Net carrying value 43,593 138,304 119,248 1,389 22,091 281,032 Stage 1 0.0% 0.1% 0.3% 1.4% 0.0% 0.2% 0.0% 0.0% – Strong 0.0% 0.0% 0.3% 1.3% 0.0% 0.2% 0.0% 0.0% – Satisfactory 0.0% 0.1% 1.1% 12.5% 0.0% 0.3% 0.1% 0.0% Stage 2 0.3% 3.6% 7.7% 47.9% 0.0% 4.4% 1.3% 0.3% – Strong 0.0% 3.3% 5.0% 45.2% 0.0% 4.7% 1.0% 0.0% – Satisfactory 0.8% 3.3% 20.6% 50.0% 0.0% 3.7% 1.1% 0.3% – Higher risk 0.0% 5.9% 13.4% 54.5% 0.0% 8.4% 6.7% 1.8% Of which (stage 2): – Less than 30 days past due 0.0% 1.8% 20.6% 50.0% 0.0% 16.7% 0.0% 0.0% – More than 30 days past due 0.0% 0.0% 13.4% 54.5% 0.0% 14.4% 0.0% 0.0% Stage 3, credit-impa ired ﬁnancial assets (S3) 6.0% 71.0% 46.9% 91.7% 0.0% 63.6% 14.3% 21.4% – Stage 3 Collateral 1 297 584 – – 881 – 46 – Stage 3 Cover ratio (after collateral) 7.2% 77.6% 83.1% 91.7% 0.0% 77.8% 14.3% 29.0% Cover ratio 0.0% 2.5% 1.1% 3.7% 0.0% 1.7% 0.1% 0.2% Fair value through proﬁt or loss Performing 36,967 58,506 6 – – 58,512 – – – Strong 30,799 38,084 3 – – 38,087 – – – Satisfactory 6,158 20,314 3 – – 20,317 – – – Higher risk 10 108 – – – 108 – – Defaulted (CG13-14) – 13 – – – 13 – – Gross balance (FVTPL) 2 36,967 58,519 6 – – 58,525 – – Net carrying value (incl FVTPL) 80,560 196,823 119,254 1,389 22,091 339,557 – – 1 Loans and advances includes reverse repurchase agreements and other sim ilar secured lend ing of $9,660 mill ion under Customers and of $2,946 m ill ion under Banks, held at amortised cost 2 Loans and advances includes reverse repurchase agreements and other sim ilar secured lend ing of $51,441 mill ion under Customers and of $34,754 m ill ion under Banks, held at fair value through proﬁt or loss Risk review Risk proﬁle 214 Standard Chartered – Annual Report 2024 2023 Customers Corporate & Wealth & Investment Retail Central & Customer Undrawn Financ ial Banks Banking Banking Ventures other items Total commitments Guarantees Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Stage 1 44,384 120,886 123,486 1,015 28,305 273,692 176,654 70,832 – Strong 35,284 84,248 118,193 1,000 27,967 231,408 162,643 47,885 – Satisfactory 9,100 36,638 5,293 15 338 42,284 14,011 22,947 Stage 2 540 7,902 2,304 54 965 11,225 5,733 2,910 – Strong 55 1,145 1,761 34 – 2,940 1,090 830 – Satisfactory 212 5,840 206 7 – 6,053 4,169 1,823 – Higher risk 273 917 337 13 965 2,232 474 257 Of which (stage 2): – Less than 30 days past due – 78 206 7 – 291 – – – More than 30 days past due – 10 337 13 – 360 – – Stage 3, credit-impa ired ﬁnancial assets 77 5,508 1,484 12 224 7,228 3 672 Gross balance¹ 45,001 134,296 127,274 1,081 29,494 292,145 182,390 74,414 Stage 1 (8) (101) (314) (15) – (430) (52) (10) – Strong (3) (34) (234) (14) – (282) (31) (2) – Satisfactory (5) (67) (80) (1) – (148) (21) (8) Stage 2 (10) (257) (141) (21) (1) (420) (39) (14) – Strong (1) (18) (65) (14) – (97) (5) – – Satisfactory (2) (179) (22) (3) – (204) (23) (7) – Higher risk (7) (60) (54) (4) (1) (119) (11) (7) Of which (stage 2): – Less than 30 days past due – (2) (22) (3) – (27) – – – More than 30 days past due – (1) (54) (4) – (59) – – Stage 3, credit-impa ired ﬁnancial assets (6) (3,533) (760) (12) (15) (4,320) – (112) Total credit impa irment (24) (3,891) (1,215) (48) (16) (5,170) (91) (136) Net carrying value 44,977 130,405 126,059 1,033 29,478 286,975 – – Stage 1 0.0% 0.1% 0.3% 1.5% 0.0% 0.2% 0.0% 0.0% – Strong 0.0% 0.0% 0.2% 1.4% 0.0% 0.1% 0.0% 0.0% – Satisfactory 0.1% 0.2% 1.5% 6.7% 0.0% 0.4% 0.1% 0.0% Stage 2 1.9% 3.3% 6.1% 38.9% 0.1% 3.7% 0.7% 0.5% – Strong 1.8% 1.6% 3.7% 41.2% 0.0% 3.3% 0.5% 0.0% – Satisfactory 0.9% 3.1% 10.7% 42.9% 0.0% 3.4% 0.6% 0.4% – Higher risk 2.6% 6.5% 16.0% 30.8% 0.1% 5.3% 2.3% 2.7% Of which (stage 2): – Less than 30 days past due 0.0% 2.6% 10.7% 42.9% 0.0% 9.3% 0.0% 0.0% – More than 30 days past due 0.0% 10.0% 16.0% 30.8% 0.0% 16.4% 0.0% 0.0% Stage 3, credit-impa ired ﬁnancial assets (S3) 7.8% 64.1% 51.2% 100.0% 6.7% 59.8% 0.0% 16.7% – Stage 3 Collateral 2 621 554 – – 1,175 – 34 – Stage 3 Cover ratio (after collateral) 10.4% 75.4% 88.5% 100.0% 6.7% 76.0% 0.0% 21.7% Cover ratio 0.1% 2.9% 1.0% 4.4% 0.1% 1.8% 0.0% 0.2% Fair value through proﬁt or loss Performing 32,813 58,465 13 – – 58,478 – – – Strong 28,402 38,014 13 – – 38,027 – – – Satisfactory 4,411 20,388 – – – 20,388 – – – Higher risk – 63 – – – 63 – – Defaulted (CG13-14) – 33 – – – 33 – – Gross balance (FVTPL) 2 32,813 58,498 13 – – 58,511 – – Net carrying value (incl FVTPL) 77,790 188,903 126,072 1,033 29,478 345,486 – – 1 Loans and advances includes reverse repurchase agreements and other sim ilar secured lend ing of $13,996 mill ion under Customers and of $1,738 m ill ion under Banks, held at amortised cost 2. Loans and advances includes reverse repurchase agreements and other sim ilar secured lend ing of $51,299 mill ion under Customers and of $30,548 m ill ion under Banks, held at fair value through proﬁt or loss Risk review and Capital review Standard Chartered – Annual Report 2024 215 Loans and advances by client segment credit quality analysis 2024 Corporate & Investment Banking and Central & other items Gross Credit impa irment Regulatory 1 year S&P external ratings Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Credit grade PD range (%) equivalent $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Strong 112,265 1,229 – 113,494 (28) (41) – (69) 1A-2B 0 – 0.045 A+ and above 32,160 31 – 32,191 (2) – – (2) 3A-4A 0.046 – 0.110 A/A– to BBB+/BBB 40,712 524 – 41,236 (8) (33) – (41) 4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 39,393 674 – 40,067 (18) (8) – (26) Satisfactory 38,439 6,665 – 45,104 (52) (218) – (270) 6A-7B 0.426 – 1.350 BB+/BB to BB- 24,928 2,677 – 27,605 (21) (24) – (45) 8A-9B 1.351 – 4.000 BB-/B+ to B 9,514 2,618 – 12,132 (20) (169) – (189) 10A-11C 4.001 – 15.75 B/B– to B-/CCC+ 3,997 1,370 – 5,367 (11) (25) – (36) Higher risk – 784 – 784 – (44) – (44) 12 15.751 – 99.999 CCC/C – 784 – 784 – (44) – (44) Credit- impa ired – – 4,574 4,574 – – (3,178) (3,178) 13-14 100 Defaulted – – 4,574 4,574 – – (3,178) (3,178) Total 150,704 8,678 4,574 163,956 (80) (303) (3,178) (3,561) 2023 Strong 112,215 1,145 – 113,360 (34) (18) – (52) 1A-2B 0 – 0.045 A+ and above 37,936 81 – 38,017 – – – – 3A-4A 0.046 – 0.110 A/A– to BBB+/BBB 32,004 558 – 32,562 (3) – – (3) 4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 42,275 506 – 42,781 (31) (18) – (49) Satisfactory 36,976 5,840 – 42,816 (67) (179) – (246) 6A-7B 0.426 – 1.350 BB+/BB to BB- 24,598 1,873 – 26,471 (38) (77) – (115) 8A-9B 1.351 – 4.000 BB-/B+ to B 8,232 2,273 – 10,505 (13) (90) – (103) 10A-11C 4.001 – 15.75 B/B– to B-/CCC+ 4,146 1,694 – 5,840 (16) (12) – (28) Higher risk – 1,882 – 1,882 – (61) – (61) 12 15.751 – 99.999 CCC/C – 1,882 – 1,882 – (61) – (61) Credit- impa ired – – 5,732 5,732 – – (3,548) (3,548) 13-14 100 Defaulted – – 5,732 5,732 – – (3,548) (3,548) Total 149,191 8,867 5,732 163,790 (101) (258) (3,548) (3,907) Risk review Risk proﬁle 216 Standard Chartered – Annual Report 2024 Undrawn commitment and ﬁnanc ial guarantees – by cl ient segment credit quality 2024 Corporate & Investment Banking and Central & other items Notional Credit impa irment Regulatory 1 year S&P external ratings Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Credit grade PD range (%) equivalent $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Strong 140,733 1,265 – 141,998 (22) (6) – (29) 1A-2B 0 – 0.045 A+ and above 29,623 280 – 29,903 (1) – – (1) 3A-4A 0.046 – 0.110 A/A– to BBB+/BBB 53,568 492 – 54,060 (4) – – (4) 4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 57,542 493 – 58,035 (17) (6) – (23) Satisfactory 46,394 4,200 – 50,594 (23) (33) – (56) 6A-7B 0.426 – 1.350 BB+/BB to BB- 2,544 1,065 – 3,609 (4) (6) – (10) 8A-9B 1.351 – 4.000 BB-/B+ to B 30,438 1,162 – 31,600 (11) (16) – (27) 10A-11C 4.001 – 15.75 B/B– to B-/CCC+ 13,412 1,973 – 15,385 (8) (11) – (19) Higher risk – 286 – 286 – (11) – (11) 12 15.751 – 99.999 CCC+/C – 286 – 286 – (11) – (11) Credit- impa ired – – 593 593 – – (129) (129) 13-14 100 Defaulted – – 593 593 – – (129) (129) Total 187,127 5,751 593 193,471 (45) (50) (129) (224) 2023 Strong 129,331 1,649 – 130,980 (19) (3) – (22) 1A-2B 0 – 0.045 A+ and above 27,882 179 – 28,061 (1) – – (1) 3A-4A 0.046 – 0.110 A/A– to BBB+/BBB 52,061 557 – 52,618 (3) (1) – (4) 4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 49,388 913 – 50,301 (15) (2) – (17) Satisfactory 35,405 5,921 – 41,326 (23) (28) – (51) 6A-7B 0.426 – 1.350 BB+/BB to BB- 2,581 1,065 – 3,646 (2) (6) – (8) 8A-9B 1.351 – 4.000 BB-/B+ to B 25,089 3,028 – 28,117 (14) (9) – (23) 10A-11C 4.001 – 15.75 B/B– to B-/CCC+ 7,735 1,828 – 9,563 (7) (13) – (20) Higher risk – 697 – 697 – (15) – (15) 12 15.751 – 99.999 CCC+/C – 697 – 697 – (15) – (15) Credit- impa ired – – 663 663 – – (112) (112) 13-14 100 Defaulted – – 663 663 – – (112) (112) Total 164,736 8,267 663 173,666 (42) (46) (112) (200) Risk review and Capital review Standard Chartered – Annual Report 2024 217 Loans and advances by client segment credit quality analysis by key geography Corporate & Investment Banking and Central & other items 2024 Gross Credit Impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Satis- Satis- Higher Satis- Satis- Higher Total Strong factory Total Strong factory Risk Total Defaulted Total Strong factory Total Strong factory Risk Total Defaulted Total Coverage $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion % Hong Kong 32,552 12,079 44,631 230 1,539 64 1,833 1,272 1,272 (8) (8) (16) (33) (107) (9) (149) (1,157) (1,157) (2.8)% Corporate Lending 14,429 6,180 20,609 225 1,329 64 1,618 1,260 1,260 (5) (4) (9) (33) (102) (9) (144) (1,157) (1,157) (5.6)% Non Corporate Lending 1 4,567 2,730 7,297 4 206 – 210 12 12 (1) (3) (4) – (5) – (5) – – (0.1)% Banks 13,556 3,169 16,725 1 4 – 5 – – (2) (1) (3) – – – – – – (0.0)% Singapore 31,129 7,769 38,898 500 955 35 1,490 407 407 – (8) (8) (4) (14) – (18) (196) (196) (0.5)% Corporate Lending 7,333 4,003 11,336 469 594 35 1,098 335 335 – (6) (6) (4) (14) – (18) (195) (195) (1.7)% Non Corporate Lending 1 19,348 567 19,915 29 358 – 387 – – – (1) (1) – – – – – – (0.0)% Banks 4,448 3,199 7,647 2 3 – 5 72 72 – (1) (1) – – – – (1) (1) (0.0)% UK 11,029 3,939 14,968 48 479 3 530 316 316 (10) (4) (14) – (27) (6) (33) (258) (258) (1.9)% Corporate Lending 325 871 1,196 47 479 1 527 258 258 (9) (3) (12) – (27) (6) (33) (237) (237) (14.2)% Non Corporate Lending 1 8,690 982 9,672 1 – – 1 57 57 (1) (1) (2) – – – – (21) (21) (0.2)% Banks 2,014 2,086 4,100 – – 2 2 1 1 – – – – – – – – – (0.0)% US 16,244 4,456 20,700 92 433 33 558 31 31 (4) (1) (5) (1) (1) – (2) (3) (3) (0.0)% Corporate Lending 5,426 2,761 8,187 77 322 – 399 28 28 (3) (1) (4) (1) (1) – (2) – – (0.1)% Non Corporate Lending 1 9,688 123 9,811 15 79 – 94 3 3 (1) – (1) – – – – (3) (3) (0.0)% Banks 1,130 1,572 2,702 – 32 33 65 – – – – – – – – – – – (0.0)% China 10,380 2,794 13,174 49 133 14 196 171 171 (3) (1) (4) – – – – (86) (86) (0.7)% Corporate Lending 4,933 2,193 7,126 49 133 14 196 168 168 (1) (1) (2) – – – – (83) (83) (1.1)% Non Corporate Lending 1 3,241 363 3,604 – – – – – – (1) – (1) – – – – – – (0.0)% Banks 2,206 238 2,444 – – – – 3 3 (1) – (1) – – – – (3) (3) (0.2)% Others 42,171 19,370 61,541 318 3,251 819 4,389 2,460 2,460 (10) (33) (43) (3) (70) (29) (102) (1,483) (1,483) (2.4)% Corporate Lending 24,835 14,075 38,910 291 2,048 516 2,855 2,221 2,221 (6) (26) (32) (3) (38) (28) (69) (1,333) (1,333) (3.3)% Non Corporate Lending 1 9,451 3,590 13,041 22 1,117 153 1,292 232 232 – (6) (6) – (31) (1) (32) (149) (149) (1.3)% Banks 7,885 1,705 9,590 5 86 150 241 7 7 (4) (1) (5) – (1) – (1) (1) (1) (0.1)% Total 143,505 50,407 193,912 1,237 6,790 968 8,996 4,657 4,657 (35) (55) (90) (41) (219) (44) (304) (3,183) (3,183) (1.7)% Corporate & Investment Banking and Central & other items 2 2023 Gross Credit Impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Satis- Satis- Higher Satis- Satis- Higher Total Strong factory Total Strong factory Risk Total Defaulted Total Strong factory Total Strong factory Risk Total Defaulted Total Coverage $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion % Hong Kong 36,776 10,151 46,927 167 937 30 1,134 1,284 1,284 (7) (23) (30) (4) (118) (3) (125) (1,025) (1,025) (2.4)% Corporate Lending 14,401 6,289 20,690 165 855 30 1,050 1,219 1,219 (5) (20) (25) (3) (118) (3) (124) (1,024) (1,024) (5.1)% Non Corporate Lending 1 6,323 2,458 8,781 1 81 – 82 65 65 (1) (2) (3) – – – – (1) (1) (0.0)% Banks 16,052 1,404 17,456 1 1 – 2 – – (1) (1) (2) (1) – – (1) – – (0.0)% Singapore 34,526 6,046 40,572 361 509 36 906 285 285 (4) (4) (8) (11) (14) (4) (29) (75) (75) (0.3)% Corporate Lending 5,766 2,334 8,100 304 504 36 844 221 221 (4) (3) (7) (11) (13) (4) (28) (74) (74) (1.2)% Non Corporate Lending 1 23,033 510 23,543 57 2 – 59 – – – (1) (1) – – – – – – (0.0)% Banks 5,727 3,202 8,929 – 3 – 3 64 64 – – – – (1) – (1) (1) (1) (0.0)% UK 8,364 4,171 12,535 56 785 83 924 257 257 (5) (5) (10) – (14) (7) (21) (209) (209) (1.7)% Corporate Lending 5,407 1,559 6,966 52 539 71 662 250 250 (4) (5) (9) – (13) (7) (20) (202) (202) (2.9)% Non Corporate Lending 1 558 1,244 1,802 – 160 – 160 3 3 (1) – (1) – (1) – (1) (3) (3) (0.3)% Banks 2,399 1,368 3,767 4 86 12 102 4 4 – – – – – – – (4) (4) (0.1)% US 14,550 4,742 19,292 219 176 19 414 5 5 (2) (2) (4) – – – – (5) (5) (0.0)% Corporate Lending 7,487 2,765 10,252 146 130 – 276 1 1 (1) (2) (3) – – – – (1) (1) (0.0)% Non Corporate Lending 1 6,181 425 6,606 25 4 – 29 4 4 (1) – (1) – – – – (4) (4) (0.1)% Banks 882 1,552 2,434 48 42 19 109 – – – – – – – – – – – (0.0)% China 9,737 2,733 12,470 31 298 8 337 262 262 (3) (4) (7) – – – – (125) (125) (1.0)% Corporate Lending 4,723 2,179 6,902 31 297 8 336 259 259 (2) (1) (3) – – – – (125) (125) (1.7)% Non Corporate Lending 1 3,254 318 3,572 – – – – – – (1) – (1) – – – – – – (0.0)% Banks 1,760 236 1,996 – 1 – 1 3 3 – (3) (3) – – – – – – (0.2)% Others 43,547 18,233 61,780 366 3,347 1,979 5,692 3,716 3,716 (16) (34) (50) (4) (35) (54) (93) (2,115) (2,115) (3.2)% Corporate Lending 16,189 15,034 31,223 345 2,322 678 3,345 3,335 3,335 (8) (27) (35) (3) (28) (46) (77) (2,012) (2,012) (5.6)% Non Corporate Lending 1 18,894 1,861 20,755 19 946 1,059 2,024 375 375 (6) (6) (12) (1) (6) (1) (8) (102) (102) (0.5)% Banks 8,464 1,338 9,802 2 79 242 323 6 6 (2) (1) (3) – (1) (7) (8) (1) (1) (0.1)% Total 147,500 46,076 193,576 1,200 6,052 2,155 9,407 5,809 5,809 (37) (72) (109) (19) (181) (68) (268) (3,554) (3,554) (1.9)% 1 Include ﬁnancing, insurance and non-banking corporations and governments 2 Amounts have been re-presented from a regional basis (Asia; Africa & Middle East; and Europe & Americas) to key geographies covering the major ity of the reported balances Risk review Risk proﬁle 218 Standard Chartered – Annual Report 2024 Wealth & Retail Banking and Ventures 2024 Gross Credit Impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Satis- Satis- Higher Satis- Satis- Higher Total Strong factory Total Strong factory Risk Total Impaired Total Strong factory Total Strong factory Risk Total Impaired Total Coverage $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion % Hong Kong 41,906 320 42,226 288 47 40 375 228 228 (59) (14) (73) (33) (20) (4) (57) (69) (69) (0.5)% Mortgages 31,080 265 31,345 55 14 24 93 75 75 – – – – – – – (7) (7) (0.0)% Credit cards 4,210 19 4,229 93 30 1 124 14 14 (36) (11) (47) (27) (19) (1) (47) (14) (14) (2.5)% Others 6,616 36 6,652 140 3 15 158 139 139 (23) (3) (26) (6) (1) (3) (10) (48) (48) (1.2)% Singapore 26,755 52 26,807 441 39 34 514 312 312 (29) (26) (55) (6) (6) (6) (18) (265) (265) (1.2)% Mortgages 13,531 12 13,543 160 32 15 207 9 9 – – – – – – – (4) (4) (0.0)% Credit cards 2,248 25 2,273 14 5 16 35 16 16 (9) (26) (35) (5) (5) (4) (14) (19) (19) (2.9)% Others 10,976 15 10,991 267 2 3 272 287 287 (20) – (20) (1) (1) (2) (4) (242) (242) (2.3)% Korea 18,062 220 18,282 378 9 22 409 112 112 (22) (1) (23) (28) (4) (1) (33) (33) (33) (0.5)% Mortgages 13,198 171 13,369 250 8 17 275 62 62 – – – – – – – (2) (2) (0.0)% Credit cards 36 1 37 1 – – 1 – – (1) – (1) – – – – – – (2.6)% Others 4,828 48 4,876 127 1 5 133 50 50 (21) (1) (22) (28) (4) (1) (33) (31) (31) (1.7)% Rest of World 26,085 4,998 31,083 338 76 241 655 977 977 (239) (13) (252) (39) (5) (18) (62) (403) (403) (2.2)% Mortgages 15,079 2,007 17,086 136 43 141 320 459 459 (4) (2) (6) – – (1) (1) (124) (124) (0.7)% Credit cards 1,148 351 1,499 29 12 19 60 40 40 (33) (1) (34) (21) – (1) (22) (27) (27) (5.2)% Others 9,858 2,640 12,498 173 21 81 275 478 478 (202) (10) (212) (18) (5) (16) (39) (252) (252) (3.8)% Total 112,808 5,590 118,398 1,445 171 337 1,953 1,629 1,629 (349) (54) (403) (106) (35) (29) (170) (770) (770) (1.1)% Wealth & Retail Banking and Ventures 1 2023 Gross Credit Impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Satis- Satis- Higher Satis- Satis- Higher Total Strong factory Total Strong factory Risk Total Impaired Total Strong factory Total Strong factory Risk Total Impaired Total Coverage $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion % Hong Kong 42,930 242 43,172 514 74 51 639 174 174 (24) (34) (58) (28) (13) (12) (53) (49) (49) (0.4)% Mortgages 32,376 152 32,528 282 53 13 348 63 63 – – – (1) – – (1) (1) (1) (0.0)% Credit cards 4,045 44 4,089 80 17 24 121 18 18 (9) (33) (42) (19) (12) (8) (39) (18) (18) (2.3)% Others 6,509 46 6,555 152 4 14 170 93 93 (15) (1) (16) (8) (1) (4) (13) (30) (30) (0.9)% Singapore 26,644 68 26,712 379 41 34 454 282 282 (15) (18) (33) (2) (5) (4) (11) (247) (247) (1.1)% Mortgages 14,993 16 15,009 230 34 11 275 13 13 – – – – – – – (4) (4) (0.0)% Credit cards 1,916 25 1,941 11 5 16 32 10 10 (7) (17) (24) – (5) (3) (8) (16) (16) (2.4)% Others 9,735 27 9,762 138 2 7 147 259 259 (8) (1) (9) (2) – (1) (3) (227) (227) (2.4)% Korea 22,966 211 23,177 462 20 9 491 93 93 (40) – (40) (18) – – (18) (19) (19) (0.3)% Mortgages 16,535 164 16,699 364 18 8 390 69 69 – – – – – – – – – (0.0)% Credit cards 113 2 115 3 – – 3 – – (4) – (4) – – – – – – (3.4)% Others 6,318 45 6,363 95 2 1 98 24 24 (36) – (36) (18) – – (18) (19) (19) (1.1)% Rest of World 26,653 4,787 31,440 440 79 256 775 947 947 (169) (29) (198) (31) (7) (42) (80) (457) (457) (2.2)% Mortgages 14,678 2,297 16,975 156 48 134 338 375 375 (5) (2) (7) (2) – (1) (3) (118) (118) (0.7)% Credit cards 1,419 68 1,487 73 1 15 89 40 40 (26) (9) (35) (7) – (10) (17) (16) (16) (4.2)% Others 10,556 2,422 12,978 211 29 107 347 532 532 (138) (18) (156) (22) (7) (31) (60) (323) (323) (3.9)% Total 119,193 5,308 124,501 1,795 213 350 2,358 1,496 1,496 (248) (81) (329) (79) (25) (58) (162) (772) (772) (1.0)% 1 Amounts have been re-presented from a regional basis (Asia, Africa and Middle East, and Europe and Americas) to key geographies covering the major ity of the reported balances. Undrawn commitment and ﬁnanc ial guarantees – by cl ient segment credit quality Wealth & Retail Banking and Ventures 2024 Notional ECL Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Strong 70,595 100 – 70,695 (15) (3) – (18) Satisfactory 850 11 – 861 (5) (1) – (6) Higher risk – 21 – 21 – (3) – (3) Impaired – – 8 8 – – – – Total 71,445 132 8 71,585 (20) (7) – (27) 2023 Notional ECL Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Strong 73,819 160 – 73,980 (15) (3) – (18) Satisfactory 889 18 – 907 (5) (1) – (6) Higher risk – 33 – 33 – (3) – (3) Impaired – – 3 3 – – – – Total 74,708 211 3 74,922 (20) (7) – (27) Risk review and Capital review Standard Chartered – Annual Report 2024 219 Movement in gross exposures and credit impa irment for loans and advances, debt securit ies, undrawn comm itments and ﬁnancial guarantees (aud ited) The tables overleaf set out the movement in gross exposures and credit impa irment by stage in respect of amortised cost loans to banks and customers, undrawn commitments, ﬁnancial guarantees and debt secur it ies class if ied at amortised cost and FVOCI. The tables are presented for the Group and separately for CIB and WRB (which also includes a separate presentation for secured and unsecured exposures). Methodology The movement lines with in the tables are an aggregat ion of monthly movements over the year and will therefore reﬂect the accumulation of multiple trades during the year. The credit impa irment charge in the income statement comprises the amounts with in the boxes in the table below, less recoveries of amounts previously written off. Discount unwind is reported in net interest income and related to stage 3 ﬁnanc ial instruments only. The approach for determin ing the key l ine items in the tables is set out below. • Transfers – transfers between stages are deemed to occur at the beginn ing of a month based on pr ior month closing balances. • Net remeasurement from stage changes – the remeasurement of credit impa irment prov is ions ar is ing from a change in stage is reported with in the stage that the assets are transferred to. For example, assets transferred into stage 2 are remeasured from a 12-month to a lifet ime ECL, with the effect of remeasurement reported in stage 2. For stage 3, this represents the in it ial remeasurement from specif ic prov is ions recogn ised on ind iv idual assets transferred into stage 3 in the year. • Net changes in exposures – new business written less repayments in the year. With in stage 1, new bus iness written will attract up to 12 months of ECL charges. Repayments of non-amortis ing loans (pr imar ily w ith in CIB) w ill have low amounts of ECL provis ions attr ibuted to them, due to the release of provis ions over the term to matur ity. In stages 2 and 3, the net change in exposures reﬂect repayments although stage 2 may include new facil it ies where clients are on non-purely precautionary early alert, are CG 12, or when non-investment grade debt securit ies are acqu ired. • Changes in risk parameters – for stages 1 and 2, this reﬂects changes in the probabil ity of default (PD), loss g iven default (LGD) and exposure at default (EAD) of assets during the year, which includes the impact of releasing provis ions over the term to maturity. It also includes the effect of changes in forecasts of macroeconomic variables during the year. In stage 3, this line represents addit ional spec if ic prov is ions recognised on exposures held with in stage 3. • Interest due but not paid – change in contractual amount of interest due in stage 3 ﬁnanc ial instruments but not paid, being the net of accruals, repayments and write-offs, together with the corresponding change in credit impa irment. Changes to ECL models, which incorporate changes to model approaches and methodologies, are not reported as a separate line item as these have an impact over a number of lines and stages. Movements during the year Stage 1 gross exposures decreased by $3.2 bill ion to $721 b ill ion (31 December 2023: $724 bill ion). CIB exposure increased by $30 bill ion to $367 b ill ion (31 December 2023: $337 b ill ion), due to an increase in exposures in ﬁnanc ial guarantees in the Energy, Financ ing, Insurance and Transport sectors. WRB decreased by $11.4 bill ion to $180 b ill ion (31 December 2023: $191 bill ion), largely dr iven by fewer mortgages in Korea, Singapore and Hong Kong, as well as off-balance sheet commitments. Debt securit ies decreased by $16.5 b ill ion, largely in the Central and other items segment which had also seen a $6.3 bill ion reduct ion in loan balances. Total stage 1 provis ions increased by $56 mill ion to $582 m ill ion (31 December 2023: $526 mill ion). CIB prov is ions decreased by $18 mill ion to $133 m ill ion (31 December 2023: $151 m ill ion), due to a release in the China CRE overlay which was driven by repayments and portfolio movements. This was partly offset by new overlays of $27 mill ion, pr imar ily in Bangladesh. WRB provis ions increased by $67 mill ion to $392 m ill ion (31 December 2023: $325 mill ion), due to del inquenc ies in the personal loans and unsecured lending portfolio. Stage 2 gross exposures decreased by $4 bill ion to $19 b ill ion (31 December 2023: $22 bill ion), pr imar ily dr iven by a net reduction in CIB exposures from off-balance sheet instruments. WRB exposures decreased by $0.4 bill ion to $2 bill ion (31 December 2023: $2.5 b ill ion), ma inly due to the mortgage portfolio. Stage 2 provis ions increased by $20 mill ion to $537 m ill ion (31 December 2023: $517 mill ion). CIB prov is ions increased by $44 mill ion to $362 m ill ion (31 December 2023: $318 m ill ion), due to $76 mill ion new overlays, largely in Hong Kong, and portfolio movements. This was offset by China CRE overlay releases, which were driven by repayments. WRB provis ions increased by $11 mill ion to $151 m ill ion (31 December 2023: $140 mill ion) ma inly driven by the overlay in Korea due to the settlement failure of two e-commerce platforms. Debt securit ies pr imar ily held in the Central and other items segment decreased by $31 mill ion, due to sovere ign upgrades. The impact of model and methodology updates in 2024 reduced modelled provis ions by $15 m ill ion across stages 1, 2 and 3 in WRB. Stage 3 gross exposures for CIB decreased by $1.1 bill ion to $5.2 bill ion (31 December 2023: $6.3 b ill ion) due to repayments and write-offs. CIB provis ions decreased by $0.3 b ill ion to $3.3 bill ion (31 December 2023: $3.7 b ill ion), due to releases from repayments and write-offs. WRB stage 3 loans remained broadly stable at $1.6 bill ion (31 December 2023: $1.5 bill ion) and prov is ions also rema ined stable at $0.8 bill ion (31 December 2023: $0.8 bill ion). The amount of stage 3 exposures written off during the year that remain subject to enforcement activ ity is $1.2 bill ion (31 December 2023: $1 bill ion). Risk review Risk proﬁle 220 Standard Chartered – Annual Report 2024 All segments (audited) Stage 1 Stage 2 Stage 3⁵ Total Total Total Total Total credit credit credit credit Gross impa ir- Gross impa ir- Gross impa ir- Gross impa ir- Amortised cost balance 3 ment Net balance 3 ment Net balance 3 ment Net balance 3 ment Net and FVOCI $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion As at 1 January 2023 720,112 (645) 719,467 27,479 (618) 26,861 8,841 (4,724) 4,117 756,432 (5,987) 750,445 Transfers to stage 1 19,594 (661) 18,933 (19,583) 661 (18,922) (11) – (11) – – – Transfers to stage 2 (42,628) 174 (42,454) 42,793 (182) 42,611 (165) 8 (157) – – – Transfers to stage 3 (96) 6 (90) (2,329) 326 (2,003) 2,425 (332) 2,093 – – – Net change in exposures 23,717 (185) 23,532 (22,727) 22 (22,705) (1,708) 624 (1,084) (718) 461 (257) Net remeasurement from stage changes – 52 52 – (199) (199) – (163) (163) – (310) (310) Changes in risk parameters – 202 202 – (32) (32) – (1,100) (1,100) – (930) (930) Write-offs – – – – – – (1,027) 1,027 – (1,027) 1,027 – Interest due but unpaid – – – – – – (83) 83 – (83) 83 – Discount unwind – – – – – – – 180 180 – 180 180 Exchange translation differences and other movements¹ 3,177 531 3,708 (3,365) (495) (3,860) (128) (102) (230) (316) (66) (382) As at 31 December 2023² 723,876 (526) 723,350 22,268 (517) 21,751 8,144 (4,499) 3,645 754,288 (5,542) 748,746 Income statement ECL (charge)/release 69 (209) (639) (779) Recoveries of amounts previously written off – – 271 271 Total credit impa irment (charge)/release 69 (209) (368) (508) As at 1 January 2024 723,876 (526) 723,350 22,268 (517) 21,751 8,144 (4,499) 3,645 754,288 (5,542) 748,746 Transfers to stage 1 16,433 (543) 15,890 (16,423) 543 (15,880) (10) – (10) – – – Transfers to stage 2 (33,301) 128 (33,173) 33,770 (153) 33,617 (469) 25 (444) – – – Transfers to stage 3 (1,631) 63 (1,568) (146) 168 22 1,777 (231) 1,546 – – – Net change in exposures 29,928 (173) 29,755 (18,435) 80 (18,355) (1,383) 622 (761) 10,110 529 10,639 Net remeasurement from stage changes – 61 61 – (185) (185) – (203) (203) – (327) (327) Changes in risk parameters – 84 84 – (242) (242) – (873) (873) – (1,031) (1,031) Derecognised – – – – – – – – – – – – Write-offs – – – – – – (1,260) 1,260 – (1,260) 1,260 – Interest due but unpaid – – – – – – 53 (53) – 53 (53) – Discount unwind – – – – – – – 135 135 – 135 135 Exchange translation differences and other movements¹ (14,626) 324 (14,302) (2,427) (231) (2,658) 147 (268) (121) (16,906) (175) (17,081) As at 31 December 2024² 720,679 (582)720,097 18,607 (537) 18,070 6,999 (4,085) 2,914 746,285 (5,204) 741,081 Income statement ECL (charge)/release⁶ (28) (347) (454) (829) Recoveries of amounts previously written off – – 279 279 Total credit impa irment (charge)/release 4 (28) (347) (175) (550) 1 Includes fair value adjustments and amortisat ion on debt secur it ies 2 Excludes Cash and balances at central banks, Accrued income, Assets held for sale and Other assets gross balances of $101,755 mill ion (31 December 2023: $111,478 mill ion) and Total cred it impa irment of $63 m ill ion (31 December 2023: $59 m ill ion) 3 The gross balance includes the notional amount of off balance sheet instruments 4 Reported basis 5 Stage 3 gross includes $59 mill ion (31 December 2023: $80 m ill ion) or ig inated cred it-impa ired debt secur it ies w ith impa irment of $N il mill ion (31 December 2023: $14 mill ion) 6 Does not include release relating to Other assets of $3 mill ion (31 December 2023: N il) Risk review and Capital review Standard Chartered – Annual Report 2024 221 Corporate & Investment Banking (audited) Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit credit credit credit Gross impa ir- Gross impa ir- Gross impa ir- Gross impa ir- Amortised cost balance 1 ment Net balance 1 ment Net balance 1 ment Net balance 1 ment Net and FVOCI $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion As at 1 January 2023 315,437 (194) 315,243 20,148 (411) 19,737 6,994 (3,822) 3,172 342,579 (4,427) 338,152 Transfers to stage 1 14,948 (347) 14,601 (14,948) 347 (14,601) – – – – – – Transfers to stage 2 (34,133) 80 (34,053) 34,175 (88) 34,087 (42) 8 (34) – – – Transfers to stage 3 (17) – (17) (1,270) 141 (1,129) 1,287 (141) 1,146 – – – Net change in exposures 41,314 (73) 41,241 (20,084) 89 (19,995) (1,335) 623 (712) 19,895 639 20,534 Net remeasurement from stage changes – 15 15 – (45) (45) – (82) (82) – (112) (112) Changes in risk parameters – 60 60 – (68) (68) – (668) (668) – (676) (676) Write-offs – – – – – – (340) 340 – (340) 340 – Interest due but unpaid – – – – – – (120) 120 – (120) 120 – Discount unwind – – – – – – – 155 155 – 155 155 Exchange translation differences and other movements (360) 308 (52) (1,148) (283) (1,431) (188) (184) (372) (1,696) (159) (1,855) As at 31 December 2023 337,189 (151) 337,038 16,873 (318) 16,555 6,256 (3,651) 2,605 360,318 (4,120) 356,198 Income statement ECL (charge)/release 2 (24) (127) (149) Recoveries of amounts previously written off – – 31 31 Total credit impa irment (charge)/release 2 (24) (96) (118) As at 1 January 2024 337,189 (151) 337,038 16,873 (318) 16,555 6,256 (3,651) 2,605 360,318 (4,120) 356,198 Transfers to stage 1 10,390 (245) 10,145 (10,390) 245 (10,145) – – – – – – Transfers to stage 2 (25,698) 47 (25,651) 25,810 (58) 25,752 (112) 11 (101) – – – Transfers to stage 3 (186) (4) (190) (186) 22 (164) 372 (18) 354 – – – Net change in exposures 50,866 (50) 50,816 (16,508) 88 (16,420) (1,063) 607 (456) 33,295 645 33,940 Net remeasurement from stage changes – 16 16 (4) (36) (40) – (100) (100) (4) (120) (124) Changes in risk parameters – 29 29 – (129) (129) – (336) (336) – (436) (436) Derecognised – – – – – – – – – – – – Write-offs – – – – – – (321) 321 – (321) 321 – Interest due but unpaid – – – – – – 25 (25) – 25 (25) – Discount unwind – – – – – – – 104 104 – 104 104 Exchange translation differences and other movements (5,455) 225 (5,230) (726) (176) (902) 13 (225) (212) (6,168) (176) (6,344) As at 31 December 2024 367,106 (133) 366,973 14,869 (362) 14,507 5,170 (3,312) 1,858 387,145 (3,807) 383,338 Income statement ECL (charge)/release (5) (77) 171 89 Recoveries of amounts previously written off – – 26 26 Total credit impa irment (charge)/release (5) (77) 197 115 1 The gross balance includes the notional amount of off balance sheet instruments Risk review Risk proﬁle 222 Standard Chartered – Annual Report 2024 Wealth & Retail Banking (audited) Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit credit credit credit Gross impa ir- Gross impa ir- Gross impa ir- Gross impa ir- Amortised cost balance 1 ment Net balance 1 ment Net balance 1 ment Net balance 1 ment Net and FVOCI $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion As at 1 January 2023 193,239 (413) 192,826 1,821 (118) 1,703 1,454 (776) 678 196,514 (1,307) 195,207 Transfers to stage 1 4,265 (246) 4,019 (4,254) 246 (4,008) (11) – (11) – – – Transfers to stage 2 (7,544) 73 (7,471) 7,667 (73) 7,594 (123) – (123) – – – Transfers to stage 3 (64) 1 (63) (1,049) 187 (862) 1,113 (188) 925 – – – Net change in exposures 1,965 (78) 1,887 (1,713) 14 (1,699) (395) – (395) (143) (64) (207) Net remeasurement from stage changes – 31 31 – (137) (137) – (38) (38) – (144) (144) Changes in risk parameters – 110 110 – (69) (69) – (426) (426) – (385) (385) Write-offs – – – – – – (649) 649 – (649) 649 – Interest due but unpaid – – – – – – 37 (37) – 37 (37) – Discount unwind – – – – – – – 24 24 – 24 24 Exchange translation differences and other movements (862) 197 (665) – (190) (190) 59 33 92 (803) 40 (763) As at 31 December 2023 190,999 (325) 190,674 2,472 (140) 2,332 1,485 (759) 726 194,956 (1,224) 193,732 Income statement ECL (charge)/release 63 (192) (464) (593) Recoveries of amounts previously written off – – 239 239 Total credit impa irment (charge)/release 63 (192) (225) (354) As at 1 January 2024 190,999 (325) 190,674 2,472 (140) 2,332 1,485 (759) 726 194,956 (1,224) 193,732 Transfers to stage 1 5,126 (288) 4,838 (5,116) 288 (4,828) (10) – (10) – – – Transfers to stage 2 (7,393) 80 (7,313) 7,525 (80) 7,445 (132) – (132) – – – Transfers to stage 3 (98) 1 (97) (1,254) 211 (1,043) 1,352 (212) 1,140 – – – Net change in exposures (3,926) (89) (4,015) (1,505) 21 (1,484) (431) – (431) (5,862) (68) (5,930) Net remeasurement from stage changes – 29 29 – (144) (144) – (44) (44) – (159) (159) Changes in risk parameters – 19 19 – (152) (152) – (537) (537) – (670) (670) Write-offs – – – – – – (808) 808 – (808) 808 – Interest due but unpaid – – – – – – 28 (28) – 28 (28) – Discount unwind – – – – – – – 30 30 – 30 30 Exchange translation differences and other movements (5,128) 181 (4,947) (92) (155) (247) 139 (16) 123 (5,081) 10 (5,071) As at 31 December 2024 179,580 (392) 179,188 2,030 (151) 1,879 1,623 (758) 865 183,233 (1,301) 181,932 Income statement ECL (charge)/release (41) (275) (581) (897) Recoveries of amounts previously written off – – 253 253 Total credit impa irment (charge)/release (41) (275) (328) (644) 1 The gross balance includes the notional amount of off-balance sheet instruments Risk review and Capital review Standard Chartered – Annual Report 2024 223 Wealth & Retail Banking – Secured (audited) Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit credit credit credit Gross impa ir- Gross impa ir- Gross impa ir- Gross impa ir- Amortised cost balance 1 ment Net balance 1 ment Net balance 1 ment Net balance 1 ment Net and FVOCI $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion As at 1 January 2023 135,362 (60) 135,302 1,413 (17) 1,396 1,028 (552) 476 137,803 (629) 137,174 Transfers to stage 1 3,311 (20) 3,291 (3,302) 20 (3,282) (9) – (9) – – – Transfers to stage 2 (5,340) 11 (5,329) 5,436 (9) 5,427 (96) (2) (98) – – – Transfers to stage 3 (28) 1 (27) (463) 1 (462) 491 (2) 489 – – – Net change in exposures (3,138) (16) (3,154) (1,250) 3 (1,247) (216) – (216) (4,604) (13) (4,617) Net remeasurement from stage changes – 4 4 – (16) (16) – (3) (3) – (15) (15) Changes in risk parameters – 22 22 – 24 24 – (110) (110) – (64) (64) Write-offs – – – – – – (109) 109 – (109) 109 – Interest due but unpaid – – – – – – (3) 3 – (3) 3 – Discount unwind – – – – – – – 12 12 – 12 12 Exchange translation differences and other movements (369) 25 (344) (7) (22) (29) (24) 20 (4) (400) 23 (377) As at 31 December 2023 129,798 (33) 129,765 1,827 (16) 1,811 1,062 (525) 537 132,687 (574) 132,113 Income statement ECL (charge)/release 10 11 (113) (92) Recoveries of amounts previously written off – – 68 68 Total credit impa irment (charge)/release 10 11 (45) (24) As at 1 January 2024 129,798 (33) 129,765 1,827 (16) 1,811 1,062 (525) 537 132,687 (574) 132,113 Transfers to stage 1 3,839 (23) 3,816 (3,836) 23 (3,813) (3) – (3) – – – Transfers to stage 2 (4,952) 13 (4,939) 5,054 (13) 5,041 (102) – (102) – – – Transfers to stage 3 (43) – (43) (566) 19 (547) 609 (19) 590 – – – Net change in exposures 2,570 (11) 2,559 (917) 8 (909) (268) – (268) 1,385 (3) 1,382 Net remeasurement from stage changes – 6 6 – (15) (15) – (7) (7) – (16) (16) Changes in risk parameters – (6) (6) – (6) (6) – (129) (129) – (141) (141) Write-offs – – – – – – (114) 114 – (114) 114 – Interest due but unpaid – – – – – – 53 (53) – 53 (53) – Discount unwind – – – – – – – 16 16 – 16 16 Exchange translation differences and other movements (4,496) 6 (4,490) (57) (31) (88) (33) 47 14 (4,586) 22 (4,564) As at 31 December 2024 126,716 (48) 126,668 1,505 (31) 1,474 1,204 (556) 648 129,425 (635) 128,790 Income statement ECL (charge)/release (11) (13) (136) (160) Recoveries of amounts previously written off – – 80 80 Total credit impa irment (charge)/release (11) (13) (56) (80) 1 The gross balance includes the notional amount of off balance sheet instruments Risk review Risk proﬁle 224 Standard Chartered – Annual Report 2024 Wealth & Retail Banking – Unsecured (audited) Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit credit credit credit Retail Banking Gross impa ir- Gross impa ir- Gross impa ir- Gross impa ir- Amortised cost balance 1 ment Net balance 1 ment Net balance 1 ment Net balance 1 ment Net and FVOCI $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion As at 1 January 2023 57,877 (353) 57,524 408 (101) 307 426 (224) 202 58,711 (678) 58,033 Transfers to stage 1 954 (226) 728 (952) 226 (726) (2) – (2) – – – Transfers to stage 2 (2,204) 62 (2,142) 2,231 (64) 2,167 (27) 2 (25) – – – Transfers to stage 3 (36) – (36) (586) 186 (400) 622 (186) 436 – – – Net change in exposures 5,103 (62) 5,041 (463) 11 (452) (179) – (179) 4,461 (51) 4,410 Net remeasurement from stage changes – 27 27 – (121) (121) – (35) (35) – (129) (129) Changes in risk parameters – 88 88 – (93) (93) – (316) (316) – (321) (321) Write-offs – – – – – – (540) 540 – (540) 540 – Interest due but unpaid – – – – – – 40 (40) – 40 (40) – Discount unwind – – – – – – – 12 12 – 12 12 Exchange translation differences and other movements (493) 172 (321) 7 (168) (161) 83 13 96 (403) 17 (386) As at 31 December 2023 61,201 (292) 60,909 645 (124) 521 423 (234) 189 62,269 (650) 61,619 Income statement ECL (charge)/release 53 (203) (351) (501) Recoveries of amounts previously written off – – 171 171 Total credit impa irment (charge)/release 53 (203) (180) (330) As at 1 January 2024 61,201 (292) 60,909 645 (124) 521 423 (234) 189 62,269 (650) 61,619 Transfers to stage 1 1,287 (265) 1,022 (1,280) 265 (1,015) (7) – (7) – – – Transfers to stage 2 (2,441) 67 (2,374) 2,471 (67) 2,404 (30) – (30) – – – Transfers to stage 3 (55) 1 (54) (688) 192 (496) 743 (193) 550 – – – Net change in exposures (6,496) (78) (6,574) (588) 13 (575) (163) – (163) (7,247) (65) (7,312) Net remeasurement from stage changes – 23 23 – (129) (129) – (37) (37) – (143) (143) Changes in risk parameters – 25 25 – (146) (146) – (408) (408) – (529) (529) Write-offs – – – – – – (694) 694 – (694) 694 – Interest due but unpaid – – – – – – (25) 25 – (25) 25 – Discount unwind – – – – – – – 14 14 – 14 14 Exchange translation differences and other movements (632) 175 (457) (35) (124) (159) 172 (63) 109 (495) (12) (507) As at 31 December 2024 52,864 (344) 52,520 525 (120) 405 419 (202) 217 53,808 (666) 53,142 Income statement ECL (charge)/release (30) (262) (445) (737) Recoveries of amounts previously written off – – 172 172 Total credit impa irment (charge)/release (30) (262) (273) (565) 1 The gross balance includes the notional amount of off balance sheet instruments Risk review and Capital review Standard Chartered – Annual Report 2024 225 Analysis of stage 2 balances The table below analyses total stage 2 gross on-and off-balance sheet exposures and associated expected credit provis ions by the key SICR driver that caused the exposures to be classif ied as stage 2 as at 31 December 2024 and 31 December 2023 for each segment. Where multiple drivers apply, the exposure is allocated based on the table order. For example, a loan may have breached the PD thresholds and could also be on non-purely precautionary early alert; in this instance, the exposure is reported under ‘Increase in PD’. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . 2024 Corporate & Wealth & Investment Banking Retail Banking Ventures Central & other items 1 Total Gross ECL Coverage Gross ECL Coverage Gross ECL Coverage Gross ECL Coverage Gross ECL Coverage $mill ion $mill ion % $mill ion $mill ion % $mill ion $mill ion % $mill ion $mill ion % $mill ion $mill ion % Increase in PD 8,465 112 1.3% 1,366 104 7.6% 48 20 31.3% 154 – 0.0% 10,033 236 2.4% Non-purely precautionary early alert 3,473 44 1.3% 30 – 0.0% – – 0.0% – – 0.0% 3,503 44 1.3% Higher risk (CG12) 686 24 3.5% 18 – 0.0% – – 0.0% 1,488 1 0.4% 2,192 25 1.1% Top up/Sell down (Private Banking) – – 0.0% 254 1 0.4% – – 0.0% – – 0.0% 254 1 0.4% Others 2,245 25 1.1% 150 5 3.3% – – 0.0% 482 – 0.0% 2,877 30 1.0% 30 days past due – – 0.0% 212 19 9.0% 6 4 66.7% – – 0.0% 218 23 10.6% Management overlay – 157 0.0% – 22 0.0% – 3 0.0% – – 0.0% – 182 0.0% Total stage 2 14,869 362 2.4% 2,030 151 7.4% 54 27 40.7% 2,124 1 0.3% 19,077 541 2.8% 2023 Increase in PD 8,262 75 0.9% 1,962 109 5.6% 96 23 24.0% 599 13 2.2% 10,919 220 2.0% Non-purely precautionary early alert 5,136 26 0.5% 37 – 0.0% – – 0.0% – – 0.0% 5,173 26 0.5% Higher risk (CG12) 1,008 56 5.6% 26 1 3.8% – – 0.0% 2,020 17 0.8% 3,054 74 2.4% Top up/Sell down (Private Banking) – – 0.0% 148 2 1.4% – – 0.0% – – 0.0% 148 2 1.7% Others 2,467 37 1.5% 151 16 10.6% – – 0.0% 489 – 0.0% 3,107 53 1.7% 30 days past due – – 0.0% 148 12 8.1% 2 – 0.0% – – 0.0% 150 12 7.7% Management overlay – 124 0.0% – – 0.0% – – 0.0% – 17 0.0% – 141 0.0% Total stage 2 16,873 318 1.9% 2,472 140 5.7% 98 23 23.5% 3,108 47 1.5% 22,551 528 2.3% 1 Includes Gross and ECL for Cash and balances at central banks and Assets held for sale Risk review Risk proﬁle 226 Standard Chartered – Annual Report 2024 Credit impa irment charge (aud ited) The table below analyses credit impa irment charges or releases of the ongo ing business portfolio and restructuring business portfolio for the year ended 31 December 2024. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . 2024 2023 Stage 1 & 2 Stage 3 Total Stage 1 & 2 Stage 3 Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Ongoing business portfolio Corporate & Investment Banking 81 (187) (106) 11 112 123 Wealth & Retail Banking 317 327 644 129 225 354 Ventures 10 64 74 42 43 85 Central & other items (37) (18) (55) (44) 10 (34) Credit impa irment charge/(release) 371 186 557 138 390 528 Restructuring business portfolio Others 1 (11) (10) 1 (21) (20) Credit impa irment charge/(release) 1 (11) (10) 1 (21) (20) Total credit impa irment charge/(release) 372 175 547 139 369 508 Problem credit management and provis ion ing (audited) Forborne and other modif ied loans by cl ient segment A forborne loan arises when a concession has been made to the contractual terms of a loan in response to a customer’s ﬁnancial d iff icult ies. Net forborne loans decreased by $221 mill ion to $784 m ill ion (31 December 2023: $1 b ill ion), ma inly due to repayments in CIB non-performing forborne loans. Net non-performing forborne loans decreased by $235 mill ion to $732 m ill ion (31 December 2023: $967 mill ion), wh ich was partly offset by a $17 mill ion increase in CIB performing forborne loans. 2024 2023 Corporate & Corporate & Investment Wealth & Investment Wealth & Banking Retail Banking Total Banking Retail Banking Total Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Gross stage 1 and 2 forborne loans 17 36 53 – 40 40 Modif icat ion of terms and condit ions 1 17 36 53 – 40 40 Impairment provis ions – (1) (1) – (2) (2) Modif icat ion of terms and condit ions 1 – (1) (1) – (2) (2) Net stage 1 and 2 forborne loans 17 35 52 – 38 38 Collateral – 27 27 – 31 31 Gross stage 3 forborne loans 2,065 258 2,323 2,340 274 2,614 Modif icat ion of terms and condit ions 1 1,824 258 2,082 2,113 274 2,387 Reﬁnancing 2 241 – 241 227 – 227 Impairment provis ions (1,481) (110) (1,591) (1,529) (118) (1,647) Modif icat ion of terms and condit ions 1 (1,242) (110) (1,352) (1,337) (118) (1,454) Reﬁnancing 2 (239) – (239) (192) – (192) Net stage 3 forborne loans 584 148 732 811 156 967 Collateral 172 55 227 341 49 390 Net carrying value of forborne loans 601 183 784 811 194 1,005 1 Modif icat ion of terms is any contractual change apart from reﬁnanc ing, as a result of cred it stress of the counterparty, i.e. interest reductions, loan covenant waivers 2 Reﬁnancing is a new contract to a borrower in credit stress, such that they are reﬁnanced and can pay other debt contracts that they were unable to honour Forborne and other modif ied loans by key geography Net forborne loans decreased by $221 mill ion to $784 m ill ion (31 December 2023: $1 b ill ion), ma inly due to non-performing forborne loans. 2024 2023 3 Hong Singa- Hong Singa- Kong Korea China pore UK US Other Total Kong Korea China pore UK US Other Total Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Performing forborne loans 2 8 – 3 – – 39 52 – 6 – 3 – – 29 38 Stage 3 forborne loans 118 18 77 25 78 1 415 732 104 22 114 37 46 1 643 967 Net forborne loans 120 26 77 28 78 1 454 784 104 28 114 40 46 1 672 1,005 3 Amounts have been re-presented from a regional basis (Asia, Africa and Middle East, and Europe and Americas) to key geographies covering the major ity of the reported balances) Risk review and Capital review Standard Chartered – Annual Report 2024 227 Credit Risk mit igat ion Potential credit losses from any given account, customer or portfolio are mit igated us ing a range of tools such as collateral, netting arrangements, credit insurance and credit derivat ives, tak ing into account expected volatil ity and guarantees. The reliance that can be placed on these mit igants is carefully assessed in light of issues such as legal certainty and enforceabil ity, market valuat ion correlation and counterparty risk of the guarantor. Collateral (audited) A secured loan is one where the borrower pledges an asset as collateral of which the Group is able to take possession in the event that the borrower defaults. The collateral values in the table below (which covers loans and advances to banks and customers, excluding those held at fair value through proﬁt or loss) are adjusted where appropriate in accordance with our risk mit igat ion policy and for the effect of over-collateralisat ion. The extent of over-collateral isat ion has been determ ined with reference to both the drawn and undrawn components of exposure as this best reﬂects the effect of collateral and other credit enhancements on the amounts aris ing from ECL. The value of collateral reﬂects management’s best estimate and is backtested against our prior experience. Collateral held on loans and advances The table below details collateral held against exposures, separately disclos ing stage 2 and stage 3 exposure and corresponding collateral. 2024 Net amount outstanding Collateral Net exposure Credit- Credit- Credit- Stage 2 impa ired Stage 2 impa ired Stage 2 impa ired ﬁnancial ﬁnancial ﬁnancial ﬁnancial ﬁnancial ﬁnancial Total assets assets (S3) Total 2 assets assets (S3) Total assets assets (S3) Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Corporate & Investment Banking 1 181,897 8,657 1,376 36,750 3,052 298 145,147 5,605 1,078 Wealth & Retail Banking 119,248 1,758 858 85,163 891 584 34,085 867 274 Ventures 1,389 25 1 – – – 1,389 25 1 Central & other items 22,091 35 98 80 35 – 22,011 – 98 Total 324,625 10,475 2,333 121,993 3,978 882 202,632 6,497 1,451 2023 Corporate & Investment Banking 1 175,382 8,175 2,046 36,458 2,972 623 138,924 5,203 1,423 Wealth & Retail Banking 126,059 2,163 724 86,827 1,136 554 39,232 1,027 170 Ventures 1,033 33 – – – – 1,033 33 – Central & other items 29,478 964 209 2,475 964 – 27,003 – 209 Total 331,952 11,335 2,979 125,760 5,072 1,177 206,192 6,263 1,802 1 Includes loans and advances to banks 2 Adjusted for over-collateralisat ion based on the drawn and undrawn components of exposures Collateral – Corporate & Investment Banking (audited) Our underwrit ing standards encourage tak ing specif ic charges on assets and we cons istently seek high-quality, investment- grade collateral. Collateral taken for longer-term and sub-investment grade corporate loans increased to 49 per cent (31 December 2023: 41 per cent). The unadjusted market value of collateral across all asset types, in respect of CIB, without adjust ing for over collateral isat ion, increased to $383 bill ion (31 December 2023: $290 b ill ion) predom inantly due to an increase in reverse repos. 88 per cent (31 December 2023: 83 per cent) of tangible collateral excluding reverse repurchase agreements and ﬁnanc ial guarantees held comprises physical assets with the remainder held in cash. Overall collateral remained broadly stable at $37 bill ion (31 December 2023: $36 b ill ion). Non-tangible collateral, such as guarantees and standby letters of credit, is also held against corporate exposures, although the ﬁnancial effect of th is type of collateral is less sign iﬁcant in terms of recoveries. However, this is considered when determin ing the loss given default and other credit-related factors. Collateral is also held against off-balance sheet exposures, includ ing undrawn commitments and trade-related instruments. Risk review Risk proﬁle 228 Standard Chartered – Annual Report 2024 Corporate & Investment Banking 2024 2023 Amortised cost $mill ion $mill ion Maximum exposure 181,897 175,382 Property 8,504 9,339 Plant, machinery and other stock 935 933 Cash 1,973 2,985 Reverse repos 12,568 13,826 AA- to AA+ 938 1,036 A- to A+ 8,324 10,606 BBB- to BBB+ 1,437 855 Lower than BBB- 95 169 Unrated 1,774 1,160 Financ ial guarantees and insurance 7,075 5,057 Commodit ies 33 5 Ships and aircraft 5,662 4,313 Total value of collateral 1 36,750 36,458 Net exposure 145,147 138,924 1 Adjusted for over-collateralisat ion based on the drawn and undrawn components of exposures Collateral – Wealth & Retail Banking (audited) In WRB, fully secured products remain stable at 85 per cent of the total portfolio (31 December 2023: 85 per cent). The following table presents an analysis of loans to ind iv iduals by product – split between fully secured, partially secured and unsecured. 2024 2023 Fully Partially Fully Partially secured¹ secured¹ Unsecured Total2 secured¹ secured¹ Unsecured Total² Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Maximum exposure 101,264 536 17,448 119,248 106,914 505 18,640 126,059 Loans to ind iv iduals Mortgages 76,696 – – 76,696 82,943 – – 82,943 CCPL 463 – 16,343 16,806 375 – 17,395 17,770 Auto 160 – – 160 312 – – 312 Secured wealth products 21,928 – – 21,928 20,303 – – 20,303 Other 2,017 536 1,105 3,658 2,981 505 1,245 4,731 Total collateral 2 85,163 86,827 Net exposure 3 34,085 39,232 Percentage of total loans 85% 0% 15% 85% 0% 15% 1 Secured loans are fully secured if the fair value of the collateral is equal to or greater than the loan at the time of orig inat ion. All other secured loans are considered to be partly secure 2 Collateral values are adjusted where appropriate in accordance with our risk mit igat ion policy and for the effect of over-collateralisat ion 3 Amounts net of ECL Mortgage loan-to-value ratios by geography (audited) Loan-to-value (LTV) ratios measure the ratio of the current mortgage outstanding to the current fair value of the properties on which they are secured. For the majority of mortgage loans, the value of property held as secur ity sign iﬁcantly exceeds the pr inc ipal outstand ing of the loan. The average LTV of the overall mortgage portfolio increased to 48.9 per cent (31 December 2023: 47.1 per cent) driven by a decrease in property prices and regulatory relaxations in a few key markets, includ ing Hong Kong and Korea. Hong Kong, which represents 34.3 per cent of WRB mortgage portfolio, has an average LTV of 58.6 per cent (31 December 2023: 55.7 per cent). The increase in Hong Kong resident ial mortgage LTV was due to a decrease in property prices. However, 29 per cent of the Hong Kong mortgage exposure is backed by credit insurance and, specif ically, 95 per cent of mortgage exposure w ith LTV greater than 80 per cent is backed by credit insurance. Our other key markets continued to have low portfolio average LTVs (Korea and Singapore at 42.1 per cent and 42.5 per cent respectively). Korea average LTV increased by 1.7 per cent ( 31 December 2023: 40.4 per cent) was mainly due to government relaxations whereby highly regulated areas have eased up to accommodate customers with higher LTV. Risk review and Capital review Standard Chartered – Annual Report 2024 229 An analysis of LTV ratios by geography for the mortgage portfolio is presented in the table below. 2024 2023 1 Hong Hong Kong Singapore Korea Other Total Kong Singapore Korea Other Total % % % % % % % % % % Amortised cost Gross Gross Gross Gross Gross Gross Gross Gross Gross Gross Less than 50 per cent 40.9 52.7 64.1 50.2 51.3 44.9 50.9 69.5 51.0 54.9 50 per cent to 59 per cent 17.6 21.8 13.2 15.4 16.5 19.5 24.7 11.0 16.7 17.1 60 per cent to 69 per cent 12.7 15.6 13.5 17.0 14.3 9.7 15.2 9.7 16.3 11.9 70 per cent to 79 per cent 5.5 9.6 8.3 12.7 8.5 4.3 8.7 8.9 11.6 7.9 80 per cent to 89 per cent 5.1 0.1 0.8 4.1 2.9 7.3 0.5 0.6 3.6 3.3 90 per cent to 99 per cent 8.2 0.0 0.1 0.5 3.0 7.4 – 0.1 0.4 2.5 100 per cent and greater 10.1 0.1 0.1 0.2 3.5 7.0 – 0.1 0.4 2.4 Average portfolio loan-to-value 58.6 42.5 42.1 48.0 48.9 55.7 43.4 40.4 47.8 47.1 Loans to ind iv iduals – mortgages ($mill ion) 31,506 13,756 13,703 17,731 76,696 32,935 15,292 17,157 17,559 82,943 1 Amounts have been re-presented from a regional basis (Asia, Africa and Middle East, and Europe and Americas) to key geographies covering the major ity of the reported balances. Collateral and other credit enhancements possessed or called upon (audited) The Group obtains assets by taking possession of collateral or calling upon other credit enhancements (such as guarantees). Repossessed properties are sold in an orderly fashion. Where the proceeds are in excess of the outstanding loan balance, the excess is returned to the borrower. Certain equity securit ies acqu ired may be held by the Group for investment purposes and are classif ied as fa ir value through proﬁt or loss, and the related loan written off. The carrying value of collateral possessed and held by the Group is $23.7 mill ion (31 December 2023: $16.5 mill ion). 2024 2023 $mill ion $mill ion Property, plant and equipment 6.1 10.5 Guarantees 4.7 6.0 Other 12.9 – Total 23.7 16.5 Other Credit Risk mit igat ion (audited) Other forms of Credit Risk mit igat ion are set out below. Credit default swaps The Group has entered into credit default swaps for portfolio management purposes, referencing loan assets with a notional value of $3.5 bill ion (31 December 2023: $3.5 b ill ion). These cred it default swaps are accounted for as ﬁnanc ial guarantees as per IFRS 9 as they will only reimburse the holder for an incurred loss on an underlying debt instrument. The Group continues to hold the underlying assets referenced in the credit default swaps and it continues to be exposed to related Credit Risk and Foreign Exchange Rate Risk on these assets. Credit linked notes The Group has issued credit linked notes for portfolio management purposes, referencing loan assets with a notional value of $18.6 bill ion (31 December 2023: $22.5 b ill ion). The Group cont inues to hold the underlying assets for which the credit linked notes provide mit igat ion. The credit linked notes of $2.0 bill ion (31 December 2023: $2.1 b ill ion) are recogn ised as a ﬁnanc ial l iab il ity at amortised cost on the balance sheet and are adjusted, where appropriate, for reductions in expected future cash ﬂows with a corresponding credit impa irment in the income statement. Derivat ive ﬁnancial instruments The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of the posit ive and negat ive mark-to-market values of applicable derivat ive transact ions. These are also set out under the ‘Derivat ive ﬁnancial instruments Credit Risk mit igat ion’ section (page 249). Off-balance sheet exposures For certain types of exposures, such as letters of credit and guarantees, the Group obtains collateral such as cash depending on internal Credit Risk assessments, as well as in the case of letters of credit holding legal title to the underlying assets should a default take place. Other portfolio analysis This section provides maturity analysis by credit quality by industry and industry and retail products analysis by key geography. Maturity analysis of loans and advances by client segment Loans and advances to the CIB segment remain predominantly short-term, with $91 bill ion (31 December 2023: $91 b ill ion) maturing in less than one year. 91 per cent (31 December 2023: 98 per cent) of loans to banks mature in less than one year, as net exposures decreased to $44 bill ion (31 December 2023: $45 b ill ion). Shorter matur it ies g ive us the ﬂexib il ity to respond promptly to events and rebalance or reduce our exposure to clients or sectors that are facing increased pressure or uncertainty. The WRB short-term book of one year or less, is stable at 27 per cent (31 December 2023: 26 per cent). The WRB long-term book of over ﬁve years also remained stable at 62 per cent (31 December 2023: 63 per cent). Risk review Risk proﬁle 230 Standard Chartered – Annual Report 2024 2024 2023 One year One to Over One year One to Over or less ﬁve years ﬁve years Total or less ﬁve years ﬁve years Total Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Corporate & Investment Banking 91,065 33,130 17,670 141,865 90,728 30,746 12,822 134,296 Wealth & Retail Banking 32,252 13,194 75,091 120,537 33,397 13,711 80,166 127,274 Ventures 1,001 442 – 1,443 747 334 – 1,081 Central & other items 22,085 2 4 22,091 29,448 43 3 29,494 Gross loans and advances to customers 146,403 46,768 92,765 285,936 154,320 44,834 92,991 292,145 Impairment provis ions (4,369) (409) (126) (4,904) (4,872) (185) (113) (5,170) Net loans and advances to customers 142,034 46,359 92,639 281,032 149,448 44,649 92,878 286,975 Net loans and advances to banks 39,591 3,699 303 43,593 43,955 1,021 1 44,977 Credit quality by industry Loans and advances This section provides an analysis of the Group’s amortised cost portfolio by industry on a gross, total credit impa irment and net basis. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . 2024 Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit Net credit Net credit Net credit Net Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying balance ment amount balance ment amount balance ment amount balance ment amount Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Industry: Energy 12,147 (9) 12,138 468 (57) 411 870 (559) 311 13,485 (625) 12,860 Manufacturing 19,942 (12) 19,930 840 (16) 824 418 (305) 113 21,200 (333) 20,867 Financ ing, insurance and non-banking 34,452 (16) 34,436 1,238 (6) 1,232 154 (142) 12 35,844 (164) 35,680 Transport, telecom and util it ies 16,099 (11) 16,088 2,309 (32) 2,277 330 (85) 245 18,738 (128) 18,610 Food and household products 8,425 (8) 8,417 267 (8) 259 251 (198) 53 8,943 (214) 8,729 Commercial real estate 12,135 (10) 12,125 1,714 (126) 1,588 1,485 (1,265) 220 15,334 (1,401) 13,933 Min ing and quarrying 5,542 (3) 5,539 287 (12) 275 124 (57) 67 5,953 (72) 5,881 Consumer durables 5,988 (6) 5,982 218 (26) 192 292 (259) 33 6,498 (291) 6,207 Construction 1,925 (2) 1,923 528 (5) 523 171 (160) 11 2,624 (167) 2,457 Trading companies & distr ibutors 589 – 589 24 (1) 23 88 (48) 40 701 (49) 652 Government 28,870 – 28,870 441 (12) 429 205 (18) 187 29,516 (30) 29,486 Other 4,590 (3) 4,587 344 (2) 342 186 (82) 104 5,120 (87) 5,033 Total 150,704 (80) 150,624 8,678 (303) 8,375 4,574 (3,178) 1,396 163,956 (3,561) 160,395 Retail Products: Mortgage 75,340 (8) 75,332 896 (2) 894 606 (136) 470 76,842 (146) 76,696 Credit Cards 8,037 (121) 7,916 222 (80) 142 71 (60) 11 8,330 (261) 8,069 Personal Loan and other unsecured lending 10,021 (228) 9,793 238 (53) 185 279 (131) 148 10,538 (412) 10,126 Auto 159 – 159 1 – 1 – – – 160 – 160 Secured wealth products 21,404 (37) 21,367 402 (6) 396 518 (353) 165 22,324 (396) 21,928 Other 3,437 (9) 3,428 194 (29) 165 155 (90) 65 3,786 (128) 3,658 Total 118,398 (403) 117,995 1,953 (170) 1,783 1,629 (770) 859 121,980 (1,343) 120,637 Net carrying value (customers)¹ 269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032 Net carrying value (Banks) 1 43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593 1 Includes reverse repurchase agreements and other sim ilar secured lend ing held at amortised cost of $9,660 mill ion for customers and $2,946 m ill ion for Banks. Risk review and Capital review Standard Chartered – Annual Report 2024 231 2023 Stage 1 Stage 2 Stage 3 Total Total Total Total Total credit Net credit Net credit Net credit Net Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying Gross impa ir- carrying balance ment amount balance ment amount balance ment amount balance ment amount Amortised cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Industry: Energy 9,397 (8) 9,389 672 (22) 650 949 (535) 414 11,018 (565) 10,453 Manufacturing 21,239 (8) 21,231 708 (16) 692 656 (436) 220 22,603 (460) 22,143 Financ ing, insurance and non-banking 31,633 (13) 31,620 571 (1) 570 80 (77) 3 32,284 (91) 32,193 Transport, telecom and util it ies 14,710 (8) 14,702 1,722 (36) 1,686 481 (178) 303 16,913 (222) 16,691 Food and household products 7,668 (15) 7,653 323 (7) 316 355 (262) 93 8,346 (284) 8,062 Commercial real estate 12,261 (30) 12,231 1,848 (129) 1,719 1,712 (1,191) 521 15,821 (1,350) 14,471 Min ing and quarrying 5,995 (4) 5,991 220 (10) 210 151 (84) 67 6,366 (98) 6,268 Consumer durables 5,815 (3) 5,812 300 (21) 279 329 (298) 31 6,444 (322) 6,122 Construction 2,230 (2) 2,228 502 (8) 494 358 (326) 32 3,090 (336) 2,754 Trading companies & distr ibutors 581 – 581 57 – 57 107 (58) 49 745 (58) 687 Government 33,400 (6) 33,394 1,783 (5) 1,778 367 (33) 334 35,550 (44) 35,506 Other 4,262 (4) 4,258 161 (3) 158 187 (70) 117 4,610 (77) 4,533 Total 149,191 (101) 149,090 8,867 (258) 8,609 5,732 (3,548) 2,184 163,790 (3,907) 159,883 Retail Products: Mortgage 81,210 (8) 81,202 1,350 (5) 1,345 519 (123) 396 83,079 (136) 82,943 Credit Cards 7,633 (104) 7,529 244 (65) 179 69 (50) 19 7,946 (219) 7,727 Personal Loan and other unsecured lending 10,867 (188) 10,679 324 (77) 247 315 (165) 150 11,506 (430) 11,076 Auto 310 – 310 1 – 1 1 – 1 312 – 312 Secured wealth products 19,923 (22) 19,901 278 (10) 268 474 (340) 134 20,675 (372) 20,303 Other 4,558 (7) 4,551 161 (5) 156 118 (94) 24 4,837 (106) 4,731 Total 124,501 (329) 124,172 2,358 (162) 2,196 1,496 (772) 724 128,355 (1,263) 127,092 Net carrying value (customers)¹ 273,692 (430) 273,262 11,225 (420) 10,805 7,228 (4,320) 2,908 292,145 (5,170) 286,975 Net carrying value (Banks) 1 44,384 (8) 44,376 540 (10) 530 77 (6) 71 45,001 (24) 44,977 1 Includes reverse repurchase agreements and other sim ilar secured lend ing held at amortised cost of $13,996 mill ion for customers and $1,738 m ill ion for Banks. Industry and Retail Products analysis of loans and advances by key geography This section provides an analysis of the Group’s amortised cost loan portfolio, net of provis ions, by industry and geography. The Manufacturing sector group is spread across a diverse range of industr ies, includ ing automob iles and components, capital goods, pharmaceuticals, biotech and life sciences, technology hardware and equipment, chemicals, paper products and packaging, with lending spread over 3,251 clients. Risk review Risk proﬁle 232 Standard Chartered – Annual Report 2024 Corporate & Investment Banking 2024 2023 1 Hong Singa- Hong Singa- Kong China pore UK US Other Total Kong China pore UK US Other Total Amortised Cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Industry: Energy 2,200 59 1,552 1,744 1,750 5,551 12,856 3,118 42 1,162 1,341 3,638 1,130 10,431 Manufacturing 4,077 4,200 1,463 389 2,307 8,431 20,867 3,570 4,309 1,666 694 2,921 8,982 22,142 Financ ing, insurance and non-banking 3,674 3,486 1,893 4,005 9,900 12,696 35,654 3,700 3,570 1,708 1,724 6,627 14,864 32,193 Transport, telecom and util it ies 5,131 662 3,106 1,084 936 7,685 18,604 4,634 429 2,499 1,030 630 7,470 16,692 Food and household products 1,038 428 1,414 962 685 4,202 8,729 541 519 911 816 664 4,611 8,062 Commercial Real estate 4,512 334 1,404 1,039 1,650 4,994 13,933 3,895 588 1,125 1,436 1,236 6,192 14,472 Min ing and Quarry ing 608 606 847 1,426 224 2,170 5,881 1,028 735 427 1,729 279 2,071 6,269 Consumer durables 2,780 293 466 84 537 2,046 6,206 3,030 244 180 177 483 2,008 6,122 Construction 318 156 372 96 247 1,268 2,457 176 163 319 137 389 1,569 2,753 Trading Companies & Distr ibutors 95 103 106 31 40 277 652 119 75 121 31 20 321 687 Government 2,576 117 219 169 4 4,352 7,437 1,445 1 547 236 6 3,814 6,049 Other 1,419 563 786 377 233 1,650 5,028 1,676 265 646 257 264 1,425 4,533 Net Loans and advances to Customers 28,428 11,007 13,628 11,406 18,513 55,322 138,304 26,932 10,940 11,311 9,608 17,157 54,457 130,405 Net Loans and advances to Banks 16,727 2,443 7,721 4,103 2,766 9,833 43,593 17,457 1,996 8,994 3,868 2,544 10,119 44,978 Wealth & Retail Banking 2024 2023 1 Hong Hong Kong Korea Singapore Other Total Kong Korea Singapore Other Total Amortised Cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Retail Products: Mortgages 31,506 13,703 13,756 17,731 76,696 32,935 17,157 15,292 17,559 82,943 Credit Cards 3,447 38 1,679 1,517 6,681 3,325 114 1,705 1,549 6,693 Personal Loans and other unsecured lending 1,057 2,796 301 5,972 10,126 950 3,230 220 6,676 11,076 Auto – – 122 38 160 – – 240 72 312 Secured wealth products 5,229 24 10,793 5,882 21,928 5,164 33 9,388 5,718 20,303 Other Retail 579 2,153 72 853 3,657 644 3,149 82 856 4,731 Net Loans and advances to Customers 41,818 18,714 26,723 31,993 119,248 43,018 23,683 26,927 32,430 126,058 1 Amounts have been re-presented from a regional basis (Asia, Africa and Middle East, and Europe and Americas) to key geographies covering the major ity of the reported balances. High carbon sectors Sectors are ident iﬁed and grouped as per the Internat ional Standard Industrial Classif icat ion (ISIC) system and exposure numbers have been updated to include all in-scope ISIC codes used for target setting among the high carbon sectors. The maximum exposures shown in the table include loans and advances to customers at amortised cost, Fair Value through proﬁt or loss, and committed facil it ies available as per IFRS 9 – Financ ial Instruments in $mill ion. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . Risk review and Capital review Standard Chartered – Annual Report 2024 233 Maximum exposure 2024 Maximum on Balance Sheet Net On Undrawn Financ ial Net Off Total On & Exposure Balance Commitments Guarantees Balance Off Balance (net of credit Sheet (net of credit (net of credit Sheet Sheet Net impa irment) Collateral Exposure impa irment) impa irment) Exposure Exposure Amortised Cost $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Industry: Automotive manufacturers 3,881 69 3,812 3,331 605 3,936 7,748 Aviat ion 1,829 960 869 842 928 1,770 2,639 Steel 1,526 316 1,210 816 325 1,141 2,351 Coal Min ing 25 – 25 – – – 25 Alumin ium 1,341 32 1,309 354 53 407 1,716 Cement 709 55 654 637 267 904 1,558 Shipp ing 7,038 5,037 2,001 2,176 397 2,573 4,574 Commercial Real Estate 7,635 3,400 4,235 2,758 684 3,442 7,677 Oil & Gas 7,421 988 6,433 7,928 7,079 15,007 21,440 Power 6,341 1,500 4,841 4,538 1,124 5,662 10,503 Total¹ 37,746 12,357 25,389 23,380 11,462 34,842 60,231 Total Corporate & Investment Banking2 196,823 32,152 164,671 118,106 81,132 199,238 363,909 Total Group³ 420,117 121,993 298,124 193,115 90,602 283,717 581,841 2023 Industry: Automotive manufacturers 3,564 65 3,499 3,791 538 4,329 7,828 Aviat ion 1,330 974 356 944 615 1,559 1,915 Steel 1,596 193 1,403 601 358 959 2,362 Coal Min ing 29 9 20 51 99 150 170 Alumin ium 526 9 517 338 188 526 1,043 Cement 671 47 624 769 259 1,028 1,652 Shipp ing 5,964 3,557 2,407 2,261 291 2,552 4,959 Commercial Real Estate 7,498 3,383 4,115 1,587 112 1,699 5,814 Oil & Gas 6,278 894 5,384 7,845 6,944 14,789 20,173 Power 5,411 1,231 4,180 3,982 732 4,714 8,894 Total 1 32,867 10,362 22,505 22,169 10,136 32,305 54,810 Total Corporate & Investment Banking2 188,903 32,744 156,159 104,437 63,183 167,620 323,779 Total Group³ 423,276 125,760 297,516 182,299 74,278 256,577 554,093 1 Maximum on balance sheet exposure includes FVTPL amount of High Carbon sector is $749 mill ion (31 December 2023: $125 m ill ion) 2 Includes on balance sheet FVTPL amount of $58,519 mill ion (31 December 2023: $58,498 m ill ion) for Corporate & Investment Bank ing loans to customers 3 Total Group includes net loans and advances to banks and net loans and advances to customers held at amortised cost of $43,593 mill ion (31 December 2023: $44,977 mill ion) and $281,032 m ill ion (31 December 2023: $286,975 m ill ion) respect ively and loans to banks and loans and advances to customers held at FVTPL of $36,967 mill ion (31 December 2023: $32,813 m ill ion) and $58, 525 mill ion (31 December 2023: $58,511 m ill ion) respect ively. Refer to credit quality table Maturity and ECL for high-carbon sectors 2024 2023 Loans and Maturity Buckets 1 Loans and Maturity Buckets 1 advances advances (Drawn Less than More than More than Expected (Drawn Less than More than More than Expected funding) 1 year 1 to 5 years 5 years Credit Loss funding) 1 year 1 to 5 years 5 years Credit Loss Sector $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Automotive Manufacturers 3,883 3,458 369 56 2 3,566 3,106 460 – 2 Aviat ion 1,833 231 404 1,198 4 1,339 149 145 1,045 9 Cement 724 356 368 – 15 719 512 189 18 48 Coal Min ing 38 25 13 – 13 42 9 33 – 13 Steel 1,598 941 133 524 72 1,649 1,258 185 206 53 Alumin ium 1,352 1,089 177 86 11 537 442 63 32 11 Oil & Gas 7,580 2,601 2,407 2,572 159 6,444 2,980 1,576 1,888 166 Power 6,401 1,700 1,404 3,297 60 5,516 1,933 1,533 2,050 105 Shipp ing 7,053 1,035 2,450 3,568 15 5,971 1,051 2,568 2,352 7 Commercial Real Estate 7,773 3,880 3,680 213 138 7,664 3,722 3,935 7 166 Total balance 1 38,235 15,316 11,405 11,514 489 33,447 15,162 10,687 7,598 580 1 Gross of credit impa irment Risk review Risk proﬁle 234 Standard Chartered – Annual Report 2024 Sectors of interest Commercial Real Estate 2024 Maximum on Balance Sheet Undrawn Financ ial Exposure (net Net On Commitments Guarantees Net Off Total On & Off of credit Balance Sheet (net of credit (net of credit Balance Sheet Balance Sheet impa irment) 1 Collateral Exposure impa irment) impa irment) Exposure Net Exposure $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Commercial Real Estate 14,037 5,947 8,090 4,932 670 5,602 13,692 2023 Commercial Real Estate 14,533 6,363 8,170 4,658 311 4,969 13,139 1 Includes net loans and advances of $13,933 mill ion (31 December 2023: $14,471 m ill ion) as deta iled in the table below Analysis of credit quality of loans and advances of Commercial Real Estate 2024 2023 Gross Gross Amortised costs $mill ion $mill ion Strong 7,222 7,326 Satisfactory 6,515 6,751 Higher risk 112 32 Credit impa ired (stage 3) 1,485 1,712 Total Gross Balance 15,334 15,821 Strong (83) (20) Satisfactory (44) (139) Higher risk (9) – Credit impa ired (stage 3) (1,265) (1,191) Total Credit Impairment (1,401) (1,350) Total Net of Credit Impairment 13,933 14,471 Strong 1.1% 0.3% Satisfactory 0.7% 2.1% Higher risk 8.0% 0.0% Credit impa ired (stage 3) 85.1% 69.6% Cover Ratio 9.1% 8.5% An analysis of the net CRE loans and advances by key geography, is set out on page 232. China commercial real estate The table below represents the on and off-balance sheet items that are exposed to China CRE by credit quality. Further details can be found in the ‘Summary of Credit Risk performance’ section on page 207 . 2024 2023 Rest of Rest of China Hong Kong Group 1 Total China Hong Kong Group 1 Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Loans to customers 324 1,598 – 1,922 584 1,821 39 2,444 Off balance sheet 1 40 – 41 42 82 – 124 Total as at 31 December 325 1,638 – 1,963 626 1,903 39 2,568 Loans to customers – By Credit quality Gross Strong – 12 – 12 33 – – 33 Satisfactory 172 338 – 510 339 619 39 997 Higher risk 12 42 – 54 8 – – 8 Credit impa ired (stage 3) 140 1,206 – 1,346 204 1,202 – 1,406 Total as at 31 December 324 1,598 – 1,922 584 1,821 39 2,444 Loans to customers – ECL Strong – – – – – – – – Satisfactory (2) (73) – (75) (3) (134) (12) (149) Higher risk – (1) – (1) – – – – Credit impa ired (stage 3) (63) (1,111) – (1,174) (70) (941) – (1,011) Total as at 31 December (65) (1,185) – (1,250) (73) (1,075) (12) (1,160) 1 Rest of Group mainly includes Singapore Risk review and Capital review Standard Chartered – Annual Report 2024 235 Debt securit ies and other el ig ible b ills (audited) This section provides further detail on gross debt securit ies and treasury b ills. The credit quality descript ions in the table below align to those used for CIB and Central and other items, as described on page 212. Debt securit ies held that have a short-term external rat ing are reported against the long-term rating of the issuer. For securit ies that are unrated, the Group appl ies an internal credit rating, as described under the ‘Credit rating and measurement’ section on page 201. Total gross debt securit ies and other el ig ible b ills decreased by $16.8 bill ion to $144 b ill ion (31 December 2023: $160 b ill ion) due to maturity of exposures, primar ily in stage 1. Stage 1 gross balance decreased by $16.5 bill ion to $142 b ill ion (31 December 2023: $158 b ill ion), ma inly due to the maturity of exposures in Hong Kong. Stage 2 gross balance decreased by $0.2 bill ion to $1.6 b ill ion (31 December 2023: $1.9 b ill ion). Stage 3 gross balance was broadly stable at $0.1 bill ion (31 December 2023: $0.2 b ill ion). 2024 2023 Gross ECL Net 2 Gross ECL Net 2 Amortised cost and FVOCI $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Stage 1 141,862 (23) 141,839 158,314 (26) 158,288 – Strong 138,353 (19) 138,334 155,568 (23) 155,545 – Satisfactory 3,509 (4) 3,505 2,746 (3) 2,743 Stage 2 1,614 (4) 1,610 1,860 (34) 1,826 – Strong 562 – 562 917 (3) 914 – Satisfactory 31 – 31 50 (1) 49 – High Risk 1,021 (4) 1,017 893 (30) 863 Stage 3 103 (2) 101 164 (61) 103 Gross balance¹ 143,579 (29) 143,550 160,338 (121) 160,217 1 Stage 3 gross includes $59 mill ion (31 December 2023: $80 m ill ion) or ig inated cred it-impa ired debt secur it ies w ith Nil impa irment (31 December 2023: $14 m ill ion) 2 FVOCI instruments are not presented net of ECL on the balance sheet. While the presentation is on a net basis for the table, the total net on-balance sheet amount is $143,562 mill ion (31 December 2023: $160,263 m ill ion). Refer to the Analys is of ﬁnanc ial instrument by stage table Risk review Risk proﬁle 236 Standard Chartered – Annual Report 2024 IFRS 9 ECL methodology (audited) Approach for determin ing ECL Credit loss terminology Component Deﬁnit ion Probabil ity of default (PD) The probabil ity that a counterparty w ill default, over the next 12 months from the reporting date (stage 1) or over the lifet ime of the product (stage 2), incorporating the impact of forward looking economic assumptions that have an effect on Credit Risk, such as unemployment rates and GDP forecasts. The PD estimates will ﬂuctuate in line with the economic cycle. The lifet ime (or term structure) PDs are based on statist ical models, cal ibrated using histor ical data and adjusted to incorporate forward-looking economic assumptions. Loss given default (LGD) The loss that is expected to arise on default, incorporating the impact of forward-looking economic assumptions where relevant, which represents the difference between the contractual cashﬂows due and those that the bank expects to receive. The Group estimates LGD based on the history of recovery rates and considers the recovery of any collateral that is integral to the ﬁnanc ial asset, tak ing into account forward-looking economic assumptions where relevant. Exposure at default (EAD) The expected balance sheet exposure at the time of default, taking into account expected changes over the lifet ime of the exposure. Th is incorporates the impact of drawdowns of facil it ies with lim its, repayments of pr inc ipal and interest, and amortisat ion. To determine the ECL, these components are multipl ied together: PD for the reference period (up to 12 months or lifet ime) x LGD x EAD and d iscounted to the balance sheet date using the effective interest rate as the discount rate. IFRS 9 ECL models have been developed for the CIB businesses on a global basis, in line with their respective portfolios. However, for some of the key countries, country-specif ic models have also been developed. The calibrat ion of forward-look ing informat ion is assessed at a country or region level to take into account local macroeconomic condit ions. Retail ECL models are country and product specif ic, g iven the local nature of the WRB business. For less material retail portfolios, the Group has adopted less sophist icated approaches based on h istor ical roll rates or loss rates: • For medium-sized retail portfolios, a roll rate model is applied, which uses a matrix that gives the average loan migrat ion rate between del inquency states from period to period. A matrix multipl icat ion is then performed to generate the ﬁnal PDs by delinquency bucket over different time horizons. • For smaller retail portfolios, a loss rate approach is applied. These use an adjusted gross charge-off rate, developed using monthly write-off and recoveries over the preceding 12 months and total outstanding balances. • While the loss rate approaches do not incorporate forward looking informat ion, to the extent that there are sign iﬁcant changes in the macroeconomic forecasts an assessment will be completed on whether an adjustment to the modelled output is required. For a lim ited number of exposures, proxy parameters or approaches are used where the data is not available to calculate the orig inat ion PDs for the purpose of applying the SICR criter ia; or for some reta il portfolios where a full history of LGD data is not available, estimates based on the loss experience from sim ilar portfol ios are used. The use of proxies is monitored and will reduce over time. The following processes are in place to assess the ongoing performance of the models: • Quarterly model monitor ing that uses recent data to compare the differences between model predict ions and actual outcomes against approved thresholds. • Annual independent validat ion is performed by Group Model Validat ion (GMV); Depth of GMV’s val idat ion var ies depending on the model material ity. Mater ial models would go through a full annual re-validat ion process, wh ile a less intens ive val idat ion process w ill be performed on non-material models. Applicat ion of l ifet ime ECL ECL is estimated based on the period over which the Group is exposed to Credit Risk. For the major ity of exposures th is equates to the maximum contractual period. For retail credit cards and corporate overdraft facil it ies, however, the Group does not typically enforce the contractual period, which can be as short as one day. As a result, the period over which the Group is exposed to Credit Risk for these instruments reﬂects their behavioural life, which incorporates expectations of customer behaviour and the extent to which Credit Risk management actions curtail the period of that exposure. The average behavioural life for retail credit cards is between 3 and 6 years across our footprint markets. The behavioural life for corporate overdraft facil it ies was re-estimated from 24 months to 36 months. The impact of this change was not material. Risk review and Capital review Standard Chartered – Annual Report 2024 237 Composit ion of cred it impa irment prov is ions (aud ited) The table below summarises the key components of the Group’s credit impa irment prov is ion balances at 31 December 2024 and 31 December 2023. 2024 2023 Corporate & Wealth & Corporate & Wealth & Investment Retail Central & Investment Retail Central & Banking Banking Ventures other items Total Banking Banking Ventures other items Total $mill ion $mill ion $mill ion $mill ion 4 $mill ion $mill ion $mill ion $mill ion $mill ion 4 $mill ion Modelled ECL provis ions (base forecast) 337 613 61 37 1,048 372 553 48 98 1,071 Impact of multiple economic scenarios 1 24 19 – – 43 20 18 – 6 44 Modelled ECL provis ions before management judgements 361 632 61 37 1,091 392 571 48 104 1,115 Includes: Model performance post model adjustments – 14 – – 14 (3) (28) – – (31) Judgemental post model adjustments 2 – (23) – – (23) – 2 – – 2 Management overlays 3 – China commercial real estate 70 – – – 70 141 – – – 141 – Other 109 27 7 – 143 – 5 – 17 22 Total modelled provis ions 540 636 68 37 1,281 533 578 48 121 1,280 Of which: Stage 1 133 392 30 34 589 151 325 15 68 559 Stage 2 362 151 27 1 541 318 140 21 49 528 Stage 3 45 93 11 2 151 64 113 12 4 193 Stage 3 non-modelled provis ions 3,267 665 – 54 3,986 3,587 646 – 88 4,321 Total credit impa irment prov is ions 3,807 1,301 68 91 5,267 4,120 1,224 48 209 5,601 1 Includes upwards judgemental post-model adjustment of $28 mill ion (31 December 2023: n il) 2 Excludes $28 mill ion upwards judgemental post-model adjustment wh ich is included in ‘Impact of multiple economic scenarios’ 3 $32 mill ion (31 December 2023: $22 m ill ion) is in stage 1, $181 mill ion (31 December 2023: $141 m ill ion) in stage 2 and $nil mill ion (31 December 2023: n il) in stage 3 4 Includes ECL on cash and balances at central banks, accrued income, assets held for sale and other assets Model performance post model adjustments (PMAs) As part of model monitor ing and independent validat ion processes, where a model’s performance breaches the approved monitor ing thresholds or val idat ion standards, an assessment is performed to determine whether a model performance PMA is required to temporarily remediate the model issue. The process for the determinat ion of PMAs is set out in the ‘Governance of PMAs and applicat ion of expert cred it judgement in respect of ECL’ section on page 246. As at 31 December 2024, model performance PMAs have been applied for ﬁve models out of the total of 110 models. In aggregate, these PMAs increase the Group’s impa irment prov is ions by $14 m ill ion (1 per cent of modelled prov is ions) compared with a $31 mill ion decrease at 31 December 2023. The reduct ion was primar ily due to the implementat ion of new models, thereby removing the need for PMAs on the old models. In addit ion to these model performance PMAs, separate judgemental post model and management adjustments have also been applied as set out on page 241. 2024 2023 $mill ion $mill ion Model performance PMAs Corporate & Investment Banking – (3) Wealth & Retail Banking 14 (28) Total model performance PMAs 14 (31) Risk review Risk proﬁle 238 Standard Chartered – Annual Report 2024 Key assumptions and judgements in determin ing ECL Incorporation of forward-looking informat ion The evolving economic environment is a key determinant of the abil ity of a bank’s cl ients to meet their obligat ions as they fall due. It is a fundamental princ iple of IFRS 9 that the provis ions banks hold aga inst potential future Credit Risk losses should depend, not just on the health of the economy today, but should also take into account potential changes to the economic environment. For example, if a bank were to antic ipate a sharp slowdown in the world economy over the coming year, it should hold more provis ions today to absorb the credit losses likely to occur in the near future. To capture the effect of changes to the economic environment, the PDs and LGDs used to calculate ECL incorporate forward-looking informat ion in the form of forecasts of the values of economic variables and asset prices that are likely to have an effect on the repayment abil ity of the Group’s cl ients. The ‘base forecast’ of the economic variables and asset prices is based on management’s view of the ﬁve-year outlook, supported by projections from the Group’s in-house research team and outputs from a third-party model that project specif ic econom ic variables and asset prices. The research team takes consensus views into considerat ion, and sen ior management review project ions for some core country variables against consensus when forming their view of the outlook. For the period beyond ﬁve years, management util ises the in-house research view and third-party model outputs, which allow for a reversion to long-term growth rates or norms. All projections are updated on a quarterly bas is. Forecast of key macroeconomic variables underlying the ECL calculation and the impact on non-linear ity In the Base Forecast – management’s view of the most likely outcome – the pace of growth of the world economy is expected to remain broadly unchanged from 2024 at around 3 per cent in 2025. This compares to the average of 3.7 per cent growth for the 10 years prior to COVID-19 (between 2010 and 2019). Support from easing ﬁnanc ial condit ions and expans ionary ﬁscal policy may be partly offset by protection ist trade pol ic ies and st ill-high interest rates in the US and elsewhere. The US economy is set to moderate in 2025, after a resil ient 2024 performance desp ite elevated interest rates. The euro area continues to struggle with major European economies includ ing Germany and France who r isk slipp ing into recession. Asia is relatively healthy, although growth at the regional level is set to moderate slightly in 2025 as both China and India slow down. The Middle-East is expected also to remain a bright spot for global growth, with the region’s non-oil growth exceeding overall global growth. The uncertainty around the economic outlook remains elevated. In particular, the change in US Presidency is expected to lead to sign iﬁcant changes in US polic ies, includ ing new and h igher tariffs on key US trading partners. On the geopolit ical front, tens ions remain elevated over the conﬂict in Ukraine and the situat ion in the Middle-East. While the quarterly Base Forecasts inform the Group’s strategic plan, one key requirement of IFRS 9 is that the assessment of provis ions should cons ider multiple future economic environments. For example, the global economy may grow more quickly or more slowly than the Base Forecast, and these variat ions would have d ifferent impl icat ions for the provis ions that the Group should hold today. As the negat ive impact of an economic downturn on credit losses tends to be greater than the posit ive impact of an economic upturn, if the Group sets provis ions only on the ECL under the Base Forecast it might mainta in a level of prov is ions that does not appropriately capture the range of potential outcomes. To address the inherent uncertainty in economic forecast, and the property of skewness (or non-linear ity), IFRS 9 requ ires reported ECL to be a probabil ity-we ighted ECL, calculated over a range of possible outcomes. To assess the range of possible outcomes the Group simulates a set of 50 scenarios around the Base Forecast, calculates the ECL under each of them and assigns an equal weight of 2 per cent to each scenario outcome. These scenarios are generated by a Monte Carlo simulat ion, wh ich addresses the challenges of crafting many realist ic alternat ive scenarios in the many countries in which the Group operates by means of a model, which produces these alternative scenarios while consider ing the degree of h istor ical uncerta inty (or volatil ity) observed from Q1 1990 to Q3 2023 around economic outcomes, the trends in each macroeconomic variable modelled and the correlation in the unexplained movements around these trends. This naturally means that each of the 50 scenarios do not have a specif ic narrat ive, although collectively they explore a range of hypothetical alternative outcomes for the global economy, includ ing scenar ios that turn out better than expected and scenarios that amplify antic ipated stresses. The GDP graphs below illustrate the shape of the Base Forecast for key footprint markets in relation to prior periods’ actuals. The long-term growth rates are based on the pace of economic expansion expected for 2030. The tables below provide a summary of the Group’s Base Forecast for these markets. The peak/trough amounts show the highest and lowest points with in the Base Forecast. China’s GDP growth is expected to ease slightly to 4.5 per cent in 2025 from 4.8 per cent in 2024. This reﬂects persistent weakness in the property sector, though it is expected to moderate external headwinds and low consumer conﬁdence. Growth in India is also expected to ease with GDP expanding by 6.5 per cent from 6.9 per cent in 2024 as the impact from recent one-off factors such as construction activ ity and electric ity demand (am id below normal rains) fade. GDP growth for Singapore is expected to slow to 2.4 per cent in 2025 from 3.5 per cent last year. An uncertain global trade outlook will weigh on sentiment in trade-reliant economies. Recent economic activ ity may have also been partly dr iven by front-loading of orders of electronics ahead of potentially negative trade polic ies in 2025. Sim ilarly, the uncerta in external environment and likely trade protection ist measures will lim it the ups ide to growth for both South Korea and Hong Kong which are expected to grow by 2.0 per cent and 2.9 per cent respectively in 2025. Risk review and Capital review Standard Chartered – Annual Report 2024 239 China GDP YoY% Hong Kong GDP YoY% Korea GDP YoY% 20 10 8 Actual Forecast Actual Forecast Actual Forecast 8 7 16 6 6 5 4 12 4 2 3 8 Long-term growth 0 2 -2 Long-term growth 4 1 Long-term growth -4 0 0 -6 -1 -8 -2 -4 -10 -3 -8 -12 -4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Singapore GDP YoY% India GDP YoY% 20 30 Actual Actual Forecast Forecast 15 20 10 10 5 Long-term growth 0 Long-term growth 0 -10 -5 -20 -10 -15 -30 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2024 year-end forecasts China Hong Kong 3-month 3-month GDP growth Unemployment interest rates House prices 5 GDP growth Unemployment interest rates House prices (YoY%) % % (YoY %) (YoY %) % % (YoY %) Base forecast 1 2024 4.8 3.6 2.0 (3.7) 2.6 3.0 4.4 (11.1) 2025 4.5 3.5 1.7 (5.3) 2.9 3.1 2.5 1.8 2026 4.3 3.3 1.6 (3.2) 2.5 3.2 2.2 6.5 2027 4.1 3.2 1.6 (0.9) 2.1 3.2 2.4 4.8 2028 3.9 3.2 1.8 0.9 1.9 3.2 2.4 3.4 5-year average 2 4.1 3.3 1.7 (1.3) 2.2 3.1 2.4 3.8 Quarterly peak 5.3 3.5 1.9 2.3 3.5 3.2 2.9 6.8 Quarterly trough 3.2 3.1 1.6 (5.6) 1.5 3.0 2.1 (2.6) Monte Carlo Low 3 (1.0) 2.8 0.6 (10.1) (1.8) 1.8 0.3 (13.1) High 4 9.3 3.7 3.0 7.8 5.8 5.1 5.3 22.2 2024 year-end forecasts Singapore Korea 3-month 3-month GDP growth Unemployment 6 interest rates House prices GDP growth Unemployment interest rates House prices (YoY%) % % (YoY%) (YoY%) % % (YoY %) Base forecast 1 2024 3.5 2.9 3.6 4.3 2.5 2.8 3.6 (0.4) 2025 2.4 2.7 1.9 0.4 2.0 2.8 3.0 4.3 2026 2.1 2.7 1.9 2.2 2.2 2.8 2.9 3.4 2027 2.2 2.7 2.0 3.0 2.1 2.8 2.9 2.4 2028 2.4 2.7 2.0 3.1 1.9 2.8 2.9 2.1 5-year average 2 2.3 2.7 2.0 2.4 2.0 2.8 2.9 2.8 Quarterly peak 3.4 2.8 2.4 3.2 2.2 2.9 3.2 4.8 Quarterly trough 0.6 2.7 1.6 (0.4) 1.5 2.8 2.9 1.9 Monte Carlo Low 3 (2.7) 2.0 0.3 (10.5) (1.3) 2.2 0.8 (4.3) High 4 7.0 3.6 3.9 17.5 5.2 3.5 5.7 9.8 240 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle 2024 year-end forecasts India 3-month GDP growth Unemployment 7 interest rates House prices Brent Crude (YoY%) % % (YoY%) $ pb Base forecast 1 2024 6.9 NA 6.4 6.3 78.3 2025 6.5 NA 6.1 6.5 77.1 2026 6.5 NA 6.0 6.4 76.4 2027 6.6 NA 6.0 6.4 77.3 2028 6.6 NA 6.0 6.3 75.3 5-year average 2 6.6 NA 6.0 6.4 76.2 Quarterly peak 7.1 NA 6.2 7.3 77.8 Quarterly trough 5.9 NA 6.0 6.0 74.8 Monte Carlo Low 3 3.2 NA 1.9 (0.1) 44.5 High 4 10.0 NA 10.3 12.6 107.8 2023 year-end forecasts China Hong Kong 3-month 3-month GDP growth Unemployment interest rates House prices 5 GDP growth Unemployment interest rates House prices (YoY%) % % (YoY%) (YoY%) % % (YoY%) 5-year average 2 4.3 4.0 2.1 4.6 2.5 3.4 3.4 2.8 Quarterly peak 5.7 4.1 2.5 7.2 3.8 3.4 5.0 4.6 Quarterly trough 3.8 3.8 1.7 1.5 1.5 3.4 2.3 (1.1) Monte Carlo Low 3 0.6 3.3 0.8 (1.5) (3.8) 1.4 0.3 (19.3) High 4 7.7 4.4 3.8 12.0 8.2 6.4 8.3 25.5 2023 year-end forecasts Singapore Korea 3-month 3-month GDP growth Unemployment 6 interest rates House prices GDP growth Unemployment interest rates House prices (YoY%) % % (YoY%) (YoY%) % % (YoY%) 5-year average 2 2.9 2.8 2.9 2.2 2.3 3.1 3.1 3.3 Quarterly peak 3.8 2.9 4.1 3.9 2.6 3.5 3.7 5.3 Quarterly trough 1.9 2.8 2.3 (0.7) 2.0 3.0 3.1 (0.3) Monte Carlo Low 3 (2.4) 1.7 0.6 (16.2) (2.3) 1.4 0.7 (6.1) High 4 8.5 3.8 5.9 19.2 7.0 5.8 6.3 12.5 2023 year-end forecasts India 3-month GDP growth Unemployment interest rates House prices Brent crude (YoY%) % % (YoY%) $ pb 5-year average 2 6.2 NA 6.2 6.1 88.2 Quarterly peak 9.1 NA 6.3 6.5 93.8 Quarterly trough 4.4 NA 5.8 4.7 82.8 Monte Carlo Low 3 2.1 NA 2.7 (0.5) 46.0 High 4 10.5 NA 9.9 13.8 137.8 1 Data presented are those used in the calculation of ECL and presented as average growth for the year. These may differ slightly to forecasts presented elsewhere in the Annual Report as they are ﬁnal ised before the per iod end 2 5 year averages covering 20 quarters from Q1 2025 to Q4 2029 for the 2024 annual report. They cover Q1 2024 to Q4 2028 for the numbers reported for the 2023 annual report 3 Represents the 10th percentile in the range of economic scenarios used to determine non-linear ity 4 Represents the 90th percentile in the range of economic scenarios used to determine non-linear ity 5 A judgemental management adjustment is held in respect of the China commercial real estate sector, as discussed on page 241 6 Singapore unemployment rate covers the resident unemployment rate, which refers to cit izens and permanent res idents 7 India unemployment is not available due to insuff ic ient data Risk review and Capital review Standard Chartered – Annual Report 2024 241 Impact of multiple economic scenarios The ﬁnal probabil ity we ighted ECL reported by the Group is a simple average of the ECL for each of the 50 scenarios simulated using a Monte Carlo model. The Monte Carlo approach has the advantage that it generates many alternative scenarios that cover our global footprint. The range of scenarios is restricted through the use of ceil ings and ﬂoors appl ied to the underlying macroeconomic variables. The current set of ceil ings and ﬂoors generated a relat ively narrow range of forecasts at 31 December 2024 and will be redeveloped in the ﬁrst quarter of 2025. Prior to this, a $28 mill ion non-l inear ity PMA has been appl ied, $13 mill ion for CIB and $15 m ill ion for WRB. The total amount of non-linear ity has been est imated by assign ing probab il ity we ights of 68 per cent, 22 per cent and 10 per cent respectively to the Base Forecast, ‘Higher for Longer Commodit ies and Rates’, and ‘Global Trade and Geopol it ical Tens ions’ scenarios which are presented on page 243 and comparing this to the unweighted Base Forecast ECL. The non-linear ity PMA represents the difference between the probabil ity we ighted ECL calculated using the three scenarios and the probabil ity we ighted ECL calculated by the Monte Carlo model. The total amount of non-linear ity includ ing the PMA is $43 mill ion (31 December 2023: $44 m ill ion). The CIB portfol io accounted for $24 mill ion (31 December 2023: $20 m ill ion) of the calculated non-l inear ity, w ith the remain ing $19 m ill ion (31 December 2023: $18 mill ion) attr ibutable to WRB portfolios. The impact of multiple economic scenarios on total modelled ECL is set out in the table below, together with the management overlay and other judgemental adjustments. Management overlays Multiple and other economic judgemental Total Base forecast scenarios 1 adjustments modelled ECL 2 $mill ion $mill ion $mill ion $mill ion Total modelled expected credit loss at 31 December 2024 1,048 43 190 1,281 Total modelled expected credit loss at 31 December 2023 1,071 44 165 1,280 1 Includes an upwards judgemental PMA of $28 mill ion (31 December 2023: n il) 2 Total modelled ECL comprises stage 1 and stage 2 balances of $1,130 mill ion (31 December 2023: $1,105 m ill ion) and $151 m ill ion (31 December 2023: $193 m ill ion) of modelled ECL on stage 3 loans The average ECL under multiple scenarios is 4 per cent (31 December 2023: 4 per cent) higher than the ECL calculated using only the most likely scenario (the Base Forecast). Portfolios that are more sensit ive to non-l inear ity include those with greater leverage and/or a longer tenor, such as Project and Shipp ing F inance portfolios. Other portfolios display min imal non-l inear ity owing to lim ited respons iveness to macroeconomic impacts for structural reasons, such as sign iﬁcant collateral isat ion as w ith the WRB mortgage portfolios. Judgemental adjustments As at 31 December 2024, the Group held judgemental adjustments for ECL as set out in the table below. All of the judgemental adjustments have been determined after taking account of the model performance PMAs reported on page 237. They are reassessed quarterly and are reviewed and approved by the IFRS 9 Impairment Committee (IIC) and will be released when no longer relevant. Corporate & Wealth & Retail Banking Investment Credit Central & Banking Mortgages Cards Other Total Ventures other Total 31 December 2024 $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Judgemental post model adjustments 13 – 9 (17) (8) – – 5 Judgemental management overlays: – China CRE 70 – – – – – – 70 – Other 109 – 5 22 27 7 – 143 Total judgemental adjustments 192 – 14 5 19 7 – 218 Judgemental adjustments by stage: Stage 1 27 – 10 (11) (1) 4 - 30 Stage 2 165 – 5 25 30 3 – 198 Stage 3 – – (1) (9) (10) – – (10) 31 December 2023 Judgemental post model adjustments – – 1 1 2 – – 2 Judgemental management overlays: – China CRE 141 – – – – – – 141 – Other – 1 2 2 5 – 17 22 Total judgemental adjustments 141 1 3 3 7 – 17 165 Judgemental adjustments by stage: Stage 1 17 1 3 6 10 – – 27 Stage 2 124 – – (3) (3) – 17 138 Stage 3 – – – – – – – – Risk review Risk proﬁle 242 Standard Chartered – Annual Report 2024 Judgemental PMAs As at 31 December 2024, judgemental PMAs to increase ECL by a net $5 mill ion (31 December 2023: $2 m ill ion increase) have been applied. $28 mill ion (31 December 2023: n il) of the increase in ECL related to multiple economic scenarios, $13 mill ion in CIB and $15 mill ion in WRB (see ‘Impact of multiple economic scenarios’ section). This was partly offset by a reduction of ECL of $23 mill ion for certa in WRB models, primar ily to adjust for temporary factors impact ing modelled outputs. These will be released when these factors normalise. Judgemental management overlays China CRE The real estate market in China has been in a downturn since late 2021, as evidenced by continued decline in sales, and investments in the sector. Liqu id ity issues experienced by Chinese property developers continued into 2023, with more developers defaulting on their obligat ions both offshore and onshore. During 2023, authorit ies on the ma inland introduced a slew of polic ies to help rev ive the sector and restore buying sentiments. Relaxed monetary policy and ﬁscal stimulus packages continued in 2024, which had assisted in arresting the drop in new home sales and stabil is ing new home sales in late 2024 to an extent in some cit ies, but home pr ices remain muted overall. Continued policy relaxations, includ ing those related to house purchase restrict ions, complet ion support for elig ible projects from onshore ﬁnancial inst itut ions, relaxation in mortgage rates, and further support for affordable housing, are key for reversing the continued decline in sales and investments and ensuring continued stabil isat ion in 2025. The Group’s loans and advances to China CRE clients was $1.9 bill ion at 31 December 2024 (31 December 2023: $2.4 bill ion). He ightened risk management continues to be carried out, with a focus on managing upcoming maturit ies through reﬁnancing and/or repayment. No new ﬁnancing transact ions were entered into, and total repayments amounted to around $500 mill ion dur ing 2024. Clients with exposure maturing with in the next 12 months have been placed on purely precautionary or non-purely precautionary early alert, where appropriate, for closer monitor ing. G iven the evolving nature of the risks in the China CRE sector, a management overlay of $70 mill ion (31 December 2023: $141 m ill ion) has been taken by estimat ing the impact of further deteriorat ion to exposures in this sector. The decrease from 31 December 2023 was primar ily driven by repayments and util isat ion due to movement to stage 3. Other In CIB, addit ional overlays of $109 m ill ion (31 December 2023: nil) have been taken, $58 mill ion of wh ich is in Hong Kong, with the remainder relating to Bangladesh and an immater ial amount for climate risks. The overlay in Hong Kong reﬂects subdued economic activ ity and increas ing commerc ial property vacancy rates, which contributes to an uncertain outlook that are not yet fully reﬂected in the credit grades and modelled ECL. The risk of further impa irment rema ins as a result of subdued economic activ ity in the property sector and the related liqu id ity constraints faced by counterparties as a result. The overlay in Bangladesh reﬂects the polit ical situat ion that has contr ibuted to an increas ing level of uncertainty in the macroeconomic outlook. The overlays for Hong Kong and Bangladesh have been determined by estimat ing the impact of a deteriorat ion to certa in exposures in these countries. In WRB, overlays of $27 mill ion includes $21 mill ion in Korea to cover the risks relating to the failure of two e-commerce payment platforms in 2024, increased bankruptcy trends in certain markets and an immater ial adjustment for climate risks. Further details on the adjustment for Climate Risk are set out in Note 1 of the ‘Notes to the ﬁnanc ial statements’ sect ion. Overlays held at 31 December 2023 of $5 mill ion in WRB to capture macroeconomic environment challenges caused by sovereign defaults or heightened sovereign risk, and $17 mill ion applied in Central and other items due to a temporary market dislocat ion in the Africa and Middle East region which were fully released during 2024. Stage 3 assets Credit-impa ired assets managed by Stressed Asset Group (SAG) incorporate forward-looking economic assumptions in respect of the recovery outcomes ident iﬁed and are assigned ind iv idual probabil ity we ight ings per IFRS 9. These assumptions are not based on a Monte Carlo simulat ion but are informed by the Base Forecast. Sensit iv ity of ECL calculation to macroeconomic variables The ECL calculation relies on multiple variables and is inherently non-linear and portfolio-dependent, which impl ies that no single analysis can fully demonstrate the sensit iv ity of the ECL to changes in the macroeconomic variables. The Group has conducted a series of analyses with the aim of ident ify ing the macroeconomic variables which might have the greatest impact on the overall ECL. These encompassed single variable and multi-variable exercises, using simple up/ down variat ion and extracts from actual calculat ion data, as well as bespoke scenario design assessments. The primary conclusion of these exercises is that no ind iv idual macroeconomic variable is materially inﬂuent ial. The Group believes this is plausible as the number of variables used in the ECL calculation is large. This does not mean that macroeconomic variables are uninﬂuent ial; rather, that the Group believes that considerat ion of macroeconom ics should involve whole scenarios, as this aligns with the multi-variable nature of the calculation. The Group faces downside risks in the operating environment related to the uncertaint ies surround ing the macroeconomic outlook. To explore this, a sensit iv ity analysis of ECL was undertaken to explore the effect of slower economic recoveries across the Group’s footprint markets. Two downside scenarios were considered in particular to explore the current uncertaint ies over commod ity prices. The ‘Global Trade and Geopolit ical Tens ions’ scenario is characterised by an escalating trade war between the US and China and other economies. The ‘Higher for Longer Commodit ies and Rates’ scenar io explores the impact from stick ier than expected inﬂat ion due to pers istent shipp ing disrupt ions and r ise in energy prices amid fears of an escalation of the Middle East conﬂict. Risk review and Capital review Standard Chartered – Annual Report 2024 243 Global Trade and Higher for longer: Baseline Geopolit ical Tens ions Commodit ies and Rates Five year Five year Five year average Peak/Trough average Peak/Trough average Peak/Trough China GDP 4.1 5.3/3.2 0.8 3.8/(2.6) 3.5 4.3/1.8 China unemployment 3.3 3.5/3.1 4.9 5.5/3.8 4.3 5.2/3.1 China property prices (1.3) 2.3/(5.6) (5.1) 11.1 /(47.6) (1.4) 8.6/(24.5) Hong Kong GDP 2.2 3.5/1.5 (1.0) 1.6/(8.0) 1.4 2.2/(0.1) Hong Kong unemployment 3.1 3.2/3.0 6.2 7.2/3.7 4.7 6.3/3.2 Hong Kong property prices 3.8 6.8/(2.6) (0.1) 30.9/(34.8) 2.8 8.9/(3.5) US GDP 2.0 2.6/1.1 0.3 2.2/(3.2) 1.1 2.5/(2.1) Singapore GDP 2.3 3.4/0.6 0.0 3.1/(5.9) 1.6 2.8/(2.3) India GDP 6.6 7.1/5.9 4.7 6.7/0.8 6.1 7.4/4.3 Crude oil 76.2 77.8/74.8 59.1 86. 2/46.2 84.9 113.4/74.8 Period covered from Q1 2025 to Q4 2029 Base (GDP, YoY%) Global Trade and Geopolit ical Tens ions Difference from Base 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 China 4.5 4.3 4.1 3.9 3.8 2.1 (2.0) (1.0) 1.4 3.5 (2.4) (6.3) (5.1) (2.6) (0.3) Hong Kong 2.9 2.5 2.1 1.9 1.6 (6.3) (1.4) 0.1 0.9 1.4 (9.1) (3.9) (2.0) (1.0) (0.2) US 1.4 2.2 2.4 2.1 2.0 (0.9) (2.2) 0.8 1.8 2.2 (2.3) (4.4) (1.6) (0.3) 0.1 Singapore 2.4 2.1 2.2 2.4 2.5 (2.9) (3.5) 1.0 2.8 2.6 (5.3) (5.6) (1.2) 0.4 0.1 India 6.8 6.3 6.7 6.5 6.5 4.6 1.8 5.3 5.8 6.1 (2.2) (4.4) (1.4) (0.8) (0.4) Each year is from Q1 to Q4. For example 2025 is from Q1 2025 to Q4 2025. Base (GDP, YoY%) Higher for longer: Commodit ies and Rates Difference from Base 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 China 4.5 4.3 4.1 3.9 3.8 2.5 3.3 4.1 3.9 3.8 (2.0) (1.0) 0.0 0.0 (0.0) Hong Kong 2.9 2.5 2.1 1.9 1.6 0.3 1.1 2.1 1.9 1.6 (2.6) (1.4) (0.0) (0.0) 0.0 US 1.4 2.2 2.4 2.1 2.0 (1.4) 0.5 2.4 2.1 2.0 (2.8) (1.7) (0.0) 0.0 0.0 Singapore 2.4 2.1 2.2 2.4 2.5 (0.2) 0.9 2.2 2.4 2.5 (2.6) (1.2) (0.0) (0.0) 0.0 India 6.8 6.3 6.7 6.5 6.5 4.9 5.8 6.7 6.5 6.5 (1.9) (0.5) (0.0) 0.0 0.0 Each year is from Q1 to Q4. For example 2025 is from Q1 2025 to Q4 2025 The total modelled stage 1 and 2 ECL provis ions ( includ ing both on and off-balance sheet instruments) would be approximately $84 mill ion h igher under the ‘Higher for Longer Commodit ies and Rates’ scenar io, and $258 mill ion h igher under the ‘Global Trade and Geopolit ical Tens ions’ scenario than the baseline ECL provis ions (wh ich excluded the impact of multiple economic scenarios and management overlays which may already capture some of the risks in these scenarios). Stage 2 exposures as a proportion of stage 1 and 2 exposures would increase from 2.7 per cent in the base case to 2.8 per cent and 3.5 per cent respectively under the ‘Higher for Longer Commodit ies and Rates’, and ‘Global Trade and Geopolit ical Tens ions’ scenarios. This includes the impact of exposures transferring to stage 2 from stage 1 but does not consider an increase in stage 3 defaults. Under both scenarios, the major ity of the increase in ECL in CIB came from the main corporate CRE and Project Finance portfolios. For the main corporate portfolios, ECL would increase by $18 mill ion and $47 m ill ion for ‘H igher for Longer Commodit ies and Rates’, and ‘Global Trade and Geopol it ical Tensions’ scenarios respectively and the proportion of stage 2 exposures would increase from 4.1 per cent in the base case to 4.3 per cent and 6.1 per cent respectively. For the WRB portfolios, most of the increase in ECL came from the unsecured retail portfolios, particularly Korea Personal Loans and the credit card portfolios in Hong Kong and Singapore, although Private Banking was also impacted in the ‘Global Trade and Geopolit ical Tens ions’ scenario. Under the ‘Higher for Longer Commodit ies and Rates’, and ‘Global Trade and Geopolit ical Tens ions’ scenarios, Credit card ECL would increase by $18 mill ion and $32 m ill ion respect ively, largely in the Singapore and Hong Kong portfolios and the proportion of stage 2 credit card exposures would increase from 1.8 per cent in the base case to 2.3 per cent and 2.9 per cent for each scenario respectively, with the Singapore portfolio most impacted. Mortgages ECL would increase by $2 mill ion and $19 m ill ion for each scenar io respectively, with portfolios in Korea impacted in the ‘Higher for Longer Commodit ies and Rates’ scenar io, and Malaysia in the ‘Global Trade and Geopolit ical Tens ions’ scenario, and the proportion of stage 2 mortgages would increase from 1.0 per cent in the base case to 1.4 per cent and 1.3 per cent respectively. There was no material change in modelled stage 3 provis ions as these primar ily relate to unsecured WRB exposures for which the LGD is not sensit ive to changes in the macroeconomic forecasts. There is also no material change for non-modelled stage 3 exposures as these are more sensit ive to cl ient specif ic factors than to alternat ive macroeconomic scenarios. The actual outcome of any scenario may be materially different due to, among other factors, the effect of management actions to mit igate potent ial increases in risk and changes in the underlying portfolio. Risk review Risk proﬁle 244 Standard Chartered – Annual Report 2024 Higher for Longer Global Trade Gross as ECL as Commodit ies and Geopolit ical reported 1 reported 2 ECL Base case and Rates Tensions $mill ion $mill ion $mill ion $mill ion $mill ion Stage 1 modelled Corporate & Investment Banking 367,106 106 95 113 125 Wealth & Retail Banking 179,580 397 387 406 428 Ventures 1,391 27 27 27 27 Central & Other items 172,602 22 22 23 25 Total stage 1 excluding management judgements 720,679 552 531 569 605 Stage 2 modelled Corporate & Investment Banking 14,869 198 185 206 315 Wealth & Retail Banking 2,030 116 107 132 161 Ventures 48 24 24 24 24 Central & Other items 1,660 1 1 1 1 Total stage 2 excluding management judgements 18,607 339 317 363 501 Total Stage 1 & 2 modelled Corporate & Investment Banking 381,975 304 280 319 440 Wealth & Retail Banking 181,610 513 494 538 589 Ventures 1,439 51 51 51 51 Central & Other items 174,262 23 23 24 26 Total excluding management judgements 739,286 891 848 932 1,106 Stage 3 exposures excluding other assets 6,999 4,095 Other ﬁnancial assets 3 101,755 63 ECL from management judgements 218 Total ﬁnancial assets reported at 31 December 2024 848,040 5,267 1 Gross balances includes both on- and off- balance sheet instruments; allocation between stage 1 and 2 will differ by scenario 2 Includes ECL for both on- and off-balance sheet instruments 3 Includes cash and balances at central banks, Accrued income, Other ﬁnanc ial assets; and Assets held for sale Sign iﬁcant increase in Credit Risk (SICR) Quantitat ive cr iter ia SICR is assessed by comparing the risk of default at the reporting date to the risk of default at orig inat ion. Whether a change in the risk of default is sign iﬁcant or not is assessed using quantitat ive and qual itat ive cr iter ia. These cr iter ia have been separately deﬁned for each business and where meaningful are consistently applied across business lines. Assets are considered to have experienced SICR if they have breached both relative and absolute thresholds for the change in the average annualised IFRS 9 lifet ime probab il ity of default (IFRS 9 PD) over the residual term of the exposure. The absolute measure of increase in credit risk is used to capture instances where the IFRS 9 PDs on exposures are relatively low at in it ial recognit ion as these may increase by several multiples without representing a sign iﬁcant increase in credit risk. Where IFRS 9 PDs are relatively high at in it ial recognit ion, a relat ive measure is more appropriate in assessing whether there is a sign iﬁcant increase in credit risk, as the IFRS 9 PDs increase more quickly. The SICR thresholds have been calibrated based on the following princ iples: • Stabil ity – The thresholds are set to ach ieve a stable stage 2 population at a portfolio level, trying to min im ise the number of accounts moving back and forth between stage 1 and stage 2 in a short period of time • Accuracy – The thresholds are set such that there is a materially higher propensity for stage 2 exposures to eventually default than is the case for stage 1 exposures • Dependency from backstops – The thresholds are stringent enough such that a high proportion of accounts transfer to stage 2 due to movements in forward-looking IFRS 9 PDs rather than relying on backward-looking backstops such as arrears • Relationsh ip w ith business and product risk proﬁles – the thresholds reﬂect the relative risk differences between different products, and are aligned to business processes For CIB clients the quantitat ive thresholds are a relat ive 100 per cent increase in IFRS 9 PD and an absolute change in IFRS 9 PD of between 50 and 100 bps for investment grade and sub-investment grade assets. For debt securit ies orig inated before 1 January 2018, the bank is util is ing the low Credit Risk simpl iﬁed approach, where debt secur it ies with an internal credit rating mapped to an investment grade equivalent are allocated to stage 1 and all other debt securit ies are allocated to stage 2. For WRB (excluding Private Banking) clients, portfolio specif ic quantitat ive thresholds are appl ied to Credit Card portfolios in Hong Kong, Singapore, Malaysia and UAE and Personal Loan portfolios in Taiwan (with a revis ion to the thresholds appl ied in 2024). During 2024 portfolio specif ic quant itat ive thresholds are also now being applied to Hong Kong Personal Loans and Business Clients Mortgage portfolio in India. The impact of the threshold changes in 2024 was not material. For Credit Card portfolios, the thresholds include relative and absolute increases in IFRS 9 PD with average lifet ime IFRS 9 PD cut-offs for those exposures that are with in a range of customer util isat ion lim it. For Personal Loans portfol ios, the thresholds include relative and absolute increases in IFRS 9 PD cut-offs for those exposures that are over six months old in the portfolio, have certain months left in the loan tenor and have certain behaviour scores. For Business Clients Mortgage, the threshold includes relative and absolute increases in IFRS 9 PD cut-offs for those exposures that were in high arrear grade bucket at least once in the last 12 months. Risk review and Capital review Standard Chartered – Annual Report 2024 245 The range of thresholds applied are: Relative IFRS 9 Absolute IFRS 9 Customer Average PD increase PD increase util isat ion Remain ing tenor IFRS 9 PD Portfolio (%) (%) (%) (months) (lifet ime) Credit cards – Current 50–150% 3.4% – 9.3% 15% – 90% – 4.51% – 11.6% Credit cards – 1-29 days past due 100% – 210% 3.5% – 6.1% 25% – 67% – 1.5% – 18.5% Personal loans – Current 100% – 250% 1.0% – >60 – Personal loan – 1-29 days past due 200% – 300% 1.5% – >12 – Business Client Mortgages – Current 100% 4.4% – – – Business Client Mortgages – 1-29 days past due 100% 7.0% – – – For all other material WRB portfolios (excluding Private Banking) for which a statist ical model has been bu ilt, the quantitat ive SICR thresholds appl ied are a relative threshold of 100 per cent increase in IFRS 9 PD and an absolute change in IFRS 9 PD of between 100 and 350 bps depending on the product. Certain countries have a higher absolute threshold reﬂecting the lower default rate with in the ir personal loan portfolios compared with the Group’s other personal loan portfolios. The orig inal l ifet ime IFRS 9 PD term structure is determined based on the orig inal appl icat ion score or r isk segment of the client. For all Private Banking classes, in line with risk management practice, an increase in credit risk is deemed to have occurred where margin ing or loan-to-value covenants have been breached. For Class I assets (lending against divers iﬁed liqu id collateral), if these margin ing requ irements have not been met with in 30 days of a tr igger, a sign iﬁcant increase in credit risk is assumed to have occurred. For Class I and Class III assets (real-estate lending), a sign iﬁcant increase in credit risk is assumed to have occurred where the bank is unable to ‘sell down’ the applicable assets to meet revised collateral requirements with in ﬁve days of a tr igger. Class II assets are typically unsecured or partially secured, or secured against ill iqu id collateral such as shares in private companies. Sign iﬁcant cred it deteriorat ion of these assets is deemed to have occurred when any early alert trigger has been breached. Qualitat ive cr iter ia Qualitat ive factors that ind icate that there has been a sign iﬁcant increase in credit risk include processes linked to current risk management, such as placing loans on non-purely precautionary early alert or being assigned a CG12 rating. An account is placed on non-purely precautionary early alert if it exhib its r isk or potential weaknesses of a material nature requir ing closer mon itor ing, superv is ion or attent ion by management. Weaknesses in such a borrower’s account, if left uncorrected, could result in deteriorat ion of repayment prospects and the likel ihood of be ing downgraded. Indicators could include a rapid erosion of posit ion w ith in the industry, concerns over management’s abil ity to manage operat ions, weak/deteriorat ing operat ing results, liqu id ity strain and overdue balances, among other factors. All client assets that have been assigned a CG12 rating, equivalent to ‘Higher risk’, are deemed to have experienced a sign iﬁcant increase in credit risk. Accounts rated CG12 are primar ily managed by relat ionsh ip managers in the CIB unit with support from SAG for certain accounts. All CIB clients are placed in CG12 when they are 30 DPD unless they are granted a waiver through a strict governance process. In WRB, SICR is also assessed for where specif ic r isk elevation events have occurred in a market that are not yet reﬂected in modelled outcomes or in other metrics. This is applied collectively either to impacted specif ic products/customer cohorts or across the overall consumer banking portfolio in the affected market. Backstop Across all portfolios, accounts that are 30 or more days past due (DPD) on contractual payments of princ ipal and/or interest that have not been captured by the criter ia above are considered to have experienced a sign iﬁcant increase in credit risk. For less material portfolios, which are modelled based on a roll-rate or loss-rate approach, SICR is primar ily assessed through the 30 DPD trigger. Expert credit judgement may be applied in assessing SICR to the extent that certain risks may not have been captured by the models or through the above criter ia. Such instances are expected to be rare, for example due to events and material uncertaint ies ar is ing close to the report ing date. Assessment of credit-impa ired ﬁnancial assets WRB clients The core components in determin ing cred it-impa ired ECL provis ions are the value of gross charge-off and recover ies. Gross charge-off and/or loss provis ions are recogn ised when it is established that the account is unlikely to pay through the normal process. Recovery of unsecured debt post credit impa irment is recognised based on actual cash collected, either directly from clients or through the sale of defaulted loans to third-party inst itut ions. Release of credit impa irment provis ions for secured loans is recognised if the loan outstanding is paid in full (release of full provis ion), or the provis ion is higher than the loan outstanding (release of the excess provis ion). CIB and Private Banking clients Credit-impa ired accounts are managed by the Group’s special ist recovery un it, Stressed Asset Group (SAG), which is independent of the Client Coverage/Relationsh ip Managers. Where a portion of exposure is considered not recoverable, a stage 3 credit impa irment prov is ion is raised. This stage 3 provis ion is the difference between the loan-carrying amount and the probabil ity-we ighted present value of estimated future cash ﬂows, reﬂecting a range of scenarios (typically the ‘upside’, ‘downside’ and ‘likely’ recovery outcomes). Where the exposure is secured by collateral, the values used will incorporate the impact of forward-looking economic informat ion on the value recoverable collateral and t ime to realise the same. The ind iv idual circumstances of each client are considered when SAG estimates future cashﬂows and the tim ing of future recoveries which involves sign iﬁcant judgement. All ava ilable sources, such as cashﬂow aris ing from operat ions, selling assets or subsid iar ies, realis ing collateral or payments under guarantees, are considered. In any decis ion relat ing to the rais ing of prov is ions, the Group attempts to balance economic condit ions, local knowledge and exper ience, and the results of independent asset reviews. The ind iv idual impa irment prov is ions (v iz. those not directly from a model) are approved by Stressed Assets Risk (SAR) who are in the Second Line of Defence. Write-offs Where it is considered that there is no realist ic prospect of recovering a portion of an exposure against which an impa irment prov is ion has been ra ised, that amount will be written off. Risk review Risk proﬁle 246 Standard Chartered – Annual Report 2024 Governance of PMAs and applicat ion of expert cred it judgement in respect of ECL The Group’s Credit Policy and Standards framework details the requirements for continuous monitor ing to ident ify any changes in credit quality and resultant ratings, as well as ensuring a consistent approach to monitor ing, manag ing and mit igat ing credit risks. The framework aligns with the governance of ECL estimat ion through the early recogn it ion of sign iﬁcant deter iorat ions in ratings which drive stage 2 and 3 ECL. The models used in determin ing ECL are rev iewed and approved by the Group Credit Model Assessment Committee (CMAC) or Delegate Model Approver (DMA), which is appointed by the Model Risk Committee. CMAC has the responsib il ity to assess and approve the use of models and to review all IFRS 9 interpretat ions related to models. CMAC also provides oversight on operational matters related to model development, performance monitor ing and model val idat ion activ it ies, includ ing standards and regulatory matters. Prior to submiss ion to CMAC for approval, the models are validated by GMV, a function which is independent of the business and the model developers. GMV’s analysis comprises review of model documentation, model design and methodology, data validat ion, rev iew of the model development and calibrat ion process, out-of-sample performance testing, and assessment of compliance review against IFRS 9 rules and internal standards. Model performance PMAs The process of PMA ident iﬁcation, calculat ion and approval are prescribed in the Credit Risk IFRS 9 ECL Model Family Standards, which are approved by the Global Head, Model Risk Management. PMA calculations are reviewed by GMV and submitted to CMAC for approval and will be removed when the estimates return to being with in the mon itor ing thresholds or validat ion standards. The level of PMAs and remediat ion plans are regularly tracked at CMAC. Judgemental adjustments These comprise judgemental PMAs and judgemental management overlays, and account for events that are not captured in the Base Case Forecast or the resulting ECL calculated by the models. Judgemental adjustments must be approved by the IIC having considered the nature of the event, why the risk is not captured in the model, and the basis on which the quantum of the overlay has been calculated. Judgemental adjustments are subject to quarterly review and re-approval by the IIC, and will be released when the risks are no longer relevant. The IFRS 9 Impairment Committee: • oversees the appropriateness of all Business Model Assessment and Solely Payments of Princ ipal and Interest (SPPI) tests • reviews and approves ECL for ﬁnanc ial assets class if ied as stages 1, 2 and 3 for each ﬁnancial report ing period • reviews and approves stage allocation rules and thresholds • approves material adjustments in relation to ECL for fair value through other comprehensive income (FVOCI) and amortised cost ﬁnanc ial assets • reviews, challenges and approves base macroeconomic forecasts and the multiple macroeconomic scenarios approach that are util ised in the forward-looking ECL calculations The IIC consists of senior representatives from Risk and Finance. It meets at least twice every quarter – once before the models are run to approve key inputs into the calculation, and once after the models are run to approve the ECL provis ions and any judgemental management overlays that may be necessary. The IIC is supported by an Expert Panel which also reviews and challenges the base case projections and mult iple macroeconomic scenarios. The Expert Panel consists of members of Enterprise Risk Management (which includes the Scenario Design team), Finance, Group Economic Research and country representatives of major jur isd ict ions. Risk review and Capital review Standard Chartered – Annual Report 2024 247 Traded Risk Market Risk (audited) Market Risk is the potential for fair value loss due to adverse moves in ﬁnanc ial markets. The Group’s exposure to Market Risk arises predominantly from the following sources: • Trading book: – The Group provides clients with access to markets, facil itat ion of which entails the Group taking moderate Market Risk posit ions. All trad ing teams support client activ ity. There are no propr ietary trading teams. Hence, income earned from Market Risk-related activ it ies is primar ily dr iven by the volume of client activ ity. • Non-trading book: – Treasury is required to hold a liqu id assets buffer, much of which is held in high-quality marketable debt securit ies – The Group underwrites and sells down loans, and invests in select investment grade debt securit ies w ith no trading intent – The Group has capital invested and related income streams denominated in currencies other than US dollars. To the extent that these income streams are not hedged, the Group is subject to Structural Foreign Exchange Risk which is reﬂected in reserves. A summary of our current polic ies and pract ices regarding Market Risk management is provided in the ‘Princ ipal R isks’ section (page 202). The primary categories of Market Risk for the Group are: • Interest Rate Risk: aris ing from changes in yield curves and impl ied volat il it ies • Foreign Exchange Risk: aris ing from changes in currency exchange rates and impl ied volat il it ies • Commodity Risk: aris ing from changes in commodity prices and impl ied volat il it ies • Credit Spread Risk: aris ing from changes in the price of debt instruments and credit-linked derivat ives and dr iven by factors other than the level of risk-free interest rates • Equity Risk: aris ing from changes in the prices of equit ies and impl ied volat il it ies Market Risk movements (audited) Value at Risk (VaR) allows the Group to manage Market Risk across the trading book and most of the fair valued non- trading books. The average level of total trading and non-trading VaR in 2024 was $41.8 mill ion, 22 per cent lower than 2023 ($53.3 mill ion). The year end level of total trad ing and non- trading VaR in 2024 was $43.3 mill ion, 3 per cent lower than 2023 ($44.5 mill ion), due to a reduct ion in market volatil ity. For the trading book, the average level of VaR in 2024 was $21.1 mill ion, 2 per cent lower than in 2023 ($21.5 mill ion). Trading activ it ies have remained relatively unchanged, and client driven. Daily Value at Risk (VaR at 97.5%, one day) (audited) 2024 2023 Average High Low Year end Average High Low Year end Trading 1 and non-trading 2 $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Interest Rate Risk 32.8 43.9 18.6 38.8 39.5 54.1 23.2 30.5 Credit Spread Risk 20.4 31.3 12.8 16.6 33.8 48.0 25.0 31.7 Foreign Exchange Risk 9.2 15.0 5.0 7.4 7.0 12.2 4.2 7.4 Commodity Risk 5.3 10.0 2.9 4.6 5.8 9.7 3.7 4.3 Equity Risk 0.4 0.9 – – 0.1 0.4 – – Divers iﬁcation effect 3 (26.3) NA NA (24.1) (32.9) NA NA (29.4) Total 41.8 53.1 29.4 43.3 53.3 65.5 44.2 44.5 2024 2023 Average High Low Year end Average High Low Year end Trading¹ $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Interest Rate Risk 12.7 22.0 7.0 12.0 13.1 20.4 7.7 11.6 Credit Spread Risk 6.6 9.6 4.8 5.4 9.4 12.4 7.4 9.4 Foreign Exchange Risk 9.2 15.0 5.0 7.4 7.0 12.2 4.2 7.4 Commodity Risk 4.8 10.0 2.4 4.3 5.8 9.7 3.7 4.4 Equity Risk – – – – – – – – Divers iﬁcation effect 3 (12.2) NA NA (8.3) (13.8) NA NA (11.5) Total 21.1 33.1 13.0 20.8 21.5 30.6 14.7 21.3 2024 2023 Average High Low Year end Average High Low Year end Non-trading 2 $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Interest Rate Risk 28.0 35.5 17.4 32.5 34.2 43.6 19.7 23.9 Credit Spread Risk 17.2 24.8 10.0 15.7 28.3 40.1 21.5 24.4 Foreign Exchange Risk – – – – – – – – Commodity Risk 1.3 1.8 0.6 0.8 0.1 0.5 0.3 0.5 Equity Risk 0.4 0.9 – – 0.1 0.4 – – Divers iﬁcation effect 3 (12.7) NA NA (10.2) (18.7) NA NA (13.2) Total 34.2 44.3 28.6 38.8 44.0 53.4 32.0 35.6 Risk review Risk proﬁle 248 Standard Chartered – Annual Report 2024 The following table sets out how trading and non-trading VaR is distr ibuted across the Group’s bus inesses: 2024 2023 Average High Low Year end Average High Low Year end $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Trading 1 and non-trading 2 41.8 53.1 29.4 43.3 53.3 65.5 44.2 44.5 Trading 1 Macro Trading 4 17.0 29.9 10.0 17.1 13.8 20.2 9.2 15.4 Global Credit 6.8 11.1 4.3 5.8 12.8 18.2 8.5 10.1 XVA 3.3 4.4 2.4 2.4 4.8 7.0 3.4 4.5 Divers iﬁcation effect 3 (6.0) NA NA (4.5) (9.9) NA NA (8.7) Total 21.1 33.1 13.0 20.8 21.5 30.6 14.7 21.3 Non-trading 2 Treasury 32.9 40.8 26.9 38.6 43.4 50.2 31.1 34.9 Global Credit 5.0 13.4 2.4 8.8 3.9 13.6 2.0 4.0 Listed Private Equity 0.4 0.9 – – 0.1 0.4 – – Divers iﬁcation effect 3 (4.1) NA NA (8.6) (3.4) NA NA (3.3) Total 34.2 43.3 28.6 38.8 44.0 53.4 32.0 35.6 1 The trading book for Market Risk is deﬁned in accordance with the UK onshored Capital Requirements Regulation Part 3 Title I Chapter 3, which restricts the posit ions perm itted in the trading book 2 The non-trading book VaR does not include the loan underwrit ing bus iness 3 The total VaR is non-addit ive across r isk types due to divers iﬁcation effects, wh ich is measured as the difference between the sum of the VaR by ind iv idual risk type or business and the combined total VaR. As the maximum and min imum occur on d ifferent days for different risk types or businesses, it is not meaningful to calculate a portfolio divers iﬁcation beneﬁt for these measures 4 Macro Trading comprises the Rates, FX and Commodit ies bus inesses Risks not in VaR In 2024, the main market risks not reﬂected in VaR were: • basis risks for which the histor ical market pr ice data is lim ited and is therefore proxied, giv ing r ise to potential proxy basis risk that is not captured in VaR • potential depeg risk from currencies currently pegged or managed, where the histor ical one-year VaR observat ion period may not reﬂect the possib il ity of a change in the currency regime or a sudden depegging • potential understatement of VaR when abrupt increases in market volatil ity are not adequately captured by the VaR model. Addit ional cap ital is set aside to cover such ‘risks not in VaR’. Backtesting In 2024, there were no regulatory backtesting negative exceptions at Group level (in 2023 there were ﬁve). An enhancement to the VaR model will be implemented from January 2025 to increase the model’s responsiveness to abrupt upturns in market volatil ity. The graph below illustrates the performance of the VaR model used in capital calculations. It compares the 99 percentile proﬁt and loss conﬁdence level given by the VaR model with the hypothetical proﬁt and loss of each day given the actual market movement ignor ing any intra-day trading activ ity. -60 -40 -20 0 20 40 60 80 2024 Backtesting chart Internal model approach regulatory trading book at Group level Hypothetical proﬁt and loss (P&L) versus VaR (99 per cent, one day) Hypothetical P&L Posit ive VaR at 99% Negative VaR at 99% Negative exceptions Jan 2024 Feb 2024 Mar 2024 Apr 2024 May 2024 Jun 2024 Jul 2024 Aug 2024 Sep 2024 Oct 2024 Nov 2024 Dec 2024 Posit ive except ions Trading loss days 2024 2023 Number of loss days reported for Markets trading book total product income 1 12 16 1 Includes credit valuation adjustment (CVA) and funding valuation adjustment (FVA), and excludes Treasury business (non-trading), period ic valuat ion changes for Capital Markets, expected loss provis ions, overn ight indexed swap (OIS) discount ing and account ing adjustments such as debit valuation adjustments Risk review and Capital review Standard Chartered – Annual Report 2024 249 Average daily income earned from Market Risk-related activ it ies¹ (audited) Trading: The average level of total trading daily income in 2024 was $13.3 mill ion, 10.8 per cent h igher than 2023 ($12 mill ion). The increase is largely attributable higher client demand for derivat ive products across Greater Ch ina and North Asia coupled with larger holdings of government and corporate bonds in antic ipat ion of increased demand by clients. Non-trading: The average level of total non-trading daily income in 2024 was $2.7 mill ion, attr ibutable to translation gains on the revaluation of FX posit ions in Egypt, and FX revaluation gains across currencies in the Markets Credit Trading business. 2024 2023 Trading $mill ion $mill ion Interest Rate Risk 5.2 4.5 Credit Spread Risk 1.7 1.2 Foreign Exchange Risk 5.6 5.5 Commodity Risk 0.8 0.8 Equity Risk – – Total 13.3 12.0 Non-trading $mill ion $mill ion Interest Rate Risk 0.6 (0.1) Credit Spread Risk 2.1 (0.7) Equity Risk – 0.1 Total 2.7 (0.7) 1 Reﬂects total product income which is the sum of client income and own account income. Includes elements of trading income, interest income and non funded income which are generated from Market Risk-related activ it ies. Rates, XVA and Treasury income are included under Interest Rate Risk while Credit Trading income is included under Credit Spread Risk Structural foreign exchange exposures The table below sets out the princ ipal structural fore ign exchange exposures (net of investment hedges) of the Group. 2024 2023 $mill ion $mill ion Hong Kong dollar 4,232 4,662 Renminb i 3,593 3,523 Indian rupee 3,480 3,309 Singapore dollar 3,306 2,415 Malaysian ringg it 1,539 1,540 Korean won 1,363 2,114 Bangladeshi taka 1,113 1,007 Euro 1,112 1,125 Taiwanese dollar 1,087 1,222 UAE dirham 807 709 Thai baht 763 782 Pakistan i rupee 392 306 Indonesian rupiah 230 293 Other 3,407 3,206 26,424 26,213 As at 31 December 2024, the Group had taken net investment hedges using derivat ive ﬁnancial instruments to partly cover its exposure to the Hong Kong dollar of $5,359 mill ion (31 December 2023: $5,603 m ill ion), Korean won of $3,048 m ill ion (31 December 2023: $2,884 mill ion), Ind ian rupee of $1,784 mill ion (31 December 2023: $1,809 m ill ion), Renm inb i of $1,640 m ill ion (31 December 2023: $1,516 mill ion), UAE d irham of $1,470 mill ion (31 December 2023: $1,470 m ill ion), Ta iwanese dollar of $1,092 mill ion (31 December 2023: $1,025 m ill ion), S ingapore dollar of $0 mill ion (2023: $1,047 m ill ion) and South Afr ican rand of $0 mill ion (31 December 2023:$64 m ill ion). An analys is has been performed on these exposures to assess the impact of a 1 per cent fall in the US dollar exchange rates, adjusted to incorporate the impacts of correlations of these currencies to the US dollar. The impact on the posit ions above would be an increase of $262 mill ion (31 December 2023: $260 m ill ion). Changes in the valuation of these posit ions are taken to reserves. For analys is of the Group’s capital posit ion and requ irements, refer to the ‘Capital review’ section (page 270). Counterparty Credit Risk Counterparty Credit Risk is the potential for loss in the event of the default of a derivat ive counterparty, after tak ing into account the value of elig ible collaterals and r isk mit igat ion techniques. The Group’s counterparty credit exposures are included in the Credit Risk section. Derivat ive ﬁnancial instruments Credit Risk mit igat ion The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of the posit ive and negat ive mark-to-market values of applicable derivat ive transact ions. In addit ion, the Group enters into credit support annexes (CSAs) with counterparties where collateral is deemed a necessary or desirable mit igant to the exposure. Cash collateral includes collateral called under a variat ion marg in process from counterparties if total uncollateralised mark-to-market exposure exceeds the threshold and min imum transfer amount specif ied in the CSA. With certain counterparties, the CSA is reciprocal and requires us to post collateral if the overall mark-to- market values of posit ions are in the counterparty’s favour and exceed an agreed threshold. Risk review Risk proﬁle 250 Standard Chartered – Annual Report 2024 Liqu id ity and Funding Risk Liqu id ity and Funding Risk is the risk that the Group may not have sufﬁcient stable or d iverse sources of funding to meet its obligat ions as they fall due. The Group’s Liqu id ity and Funding Risk framework requires each country to ensure that it operates with in predeﬁned liqu id ity lim its and rema ins in compliance with Group liqu id ity polic ies and pract ices, as well as local regulatory requirements. The Group achieves this through a combinat ion of sett ing Risk Appetite and associated lim its, pol icy formation, risk measurement and monitor ing, prudent ial and internal stress testing, governance and review. Throughout 2024, the Group retained a robust liqu id ity posit ion across key metr ics. The Group continues to focus on improv ing the qual ity and divers iﬁcation of its funding mix and remains committed to supporting its clients. Primary sources of funding (audited) The Group’s funding strategy is largely driven by its policy to mainta in adequate l iqu id ity at all times, in all geographic locations and for all currencies. This is done to ensure the Group can meet all of its obligat ions as they fall due. The Group’s funding proﬁle is therefore well divers iﬁed across different sources, maturit ies and currenc ies. The Group‘s assets are funded predominantly by customer deposits, supplemented with wholesale funding, which is divers iﬁed by type and matur ity. The Group mainta ins access to wholesale fund ing markets in all major ﬁnanc ial centres in which it operates. This seeks to ensure that the Group has market intell igence, ma inta ins stable funding lines and can obtain optimal pric ing when performing cashﬂow management activ it ies. In 2024, the Group issued approximately $9.1 bill ion worth of securit ies from its holding company, Standard Chartered PLC (2023 $8.1 bill ion of sen ior debt securit ies). The issuances included $1.6 bill ion of Add it ional T ier 1 securit ies and $7.5 bill ion of sen ior debt securit ies across mult iple currencies. Over this same period, there were Addit ional T ier 1 calls of $0.6 bill ion, T ier 2 redemptions (calls & maturit ies) of around $1.6 bill ion and sen ior calls of $6.3 bill ion. In the next 12 months, approximately $7.8 bill ion of the Group’s Add it ional T ier 1, senior and subordinated debt securit ies are e ither falling due for repayment contractually or callable by the Group. Group’s composit ion of l iab il it ies and equ ity 31 December 2024 4.2 9.7 9.2 Derivat ive ﬁnancial instruments Deposits by banks Debt securit ies in issue Customer accounts Other liab il it ies Equity Subordinated liab il it ies and other borrowed funds 61.6 8.1 1.2 6.0 100% Liqu id ity and Funding Risk metrics The Group continually monitors key liqu id ity metrics, both on a country basis and consolidated across the Group. The following liqu id ity and funding Board Risk Appetite metrics deﬁne the maximum amount and type of risk that the Group is will ing to assume in pursuit of its strategy: liqu id ity coverage ratio (LCR), liqu id ity stress survival horizons, recovery capacity and net stable funding ratio (NSFR). In addit ion to the Board Risk Appetite, there are further lim its that apply at Group and country level such as external wholesale borrowing (WBE) and cross currency lim its. Liqu id ity coverage ratio (LCR) The LCR is a regulatory requirement set to ensure the Group has sufﬁcient unencumbered h igh-quality liqu id assets to meet its liqu id ity needs in a 30-calendar-day liqu id ity stress scenario. The Group monitors and reports its liqu id ity posit ions under the Liqu id ity Coverage Ratio per PRA rulebook and has mainta ined its LCR above the prudential requirement. The Group mainta ined robust l iqu id ity ratios throughout 2024. At the reporting date, the Group LCR was 138 per cent (31 December 2023: 145 per cent), with a surplus to both Board-approved Risk Appetite and regulatory requirements. Adequate liqu id ity was held across our footprint to meet all local prudential LCR requirements where applicable. The Liqu id ity buffer reported is after deductions made to reﬂect the impact of lim itat ions in the transferabil ity of ent ity liqu id ity around the Group. This resulted in an adjustment of $35 bill ion to LCR HQLA as at 31 December 2024. 2024 2023 $mill ion $mill ion Liqu id ity buffer 170,306 185,643 Total net cash outﬂows 123,226 128,111 Liqu id ity coverage ratio 138% 145% Risk review and Capital review Standard Chartered – Annual Report 2024 251 Stressed coverage The Group intends to mainta in a prudent and susta inable funding and liqu id ity posit ion, in all countries and currencies, such that it can withstand a severe but plausible liqu id ity stress. Our approach to managing liqu id ity and funding is reﬂected in the Board-level Risk Appetite Statement which includes the following: “The Group should have sufﬁcient stable and d iverse sources of funding to meet its contractual and contingent obligat ions as they fall due.” The Group’s internal liqu id ity adequacy assessment process (‘ILAAP’) stress testing framework covers the following stress scenarios: • Standard Chartered-specif ic – Captures the l iqu id ity impact from an id iosyncrat ic event affecting Standard Chartered only with the rest of the market assumed to be operating normally. • Market wide – Captures the liqu id ity impact from a market-wide cris is affect ing all partic ipants in a country, region or globally. • Combined – Assumes both Standard Chartered-specif ic and Market-wide events affect the Group simultaneously and hence is the most severe scenario. All scenarios include, but are not lim ited to, modelled outﬂows for retail and wholesale funding, off-balance sheet funding risk, cross-currency funding risk, intraday risk, franchise risk and risks associated with a deteriorat ion of a ﬁrm’s cred it rating. Concentration risk approach captures single name and industry concentration. ILAAP stress testing results show that, as at 31 December 2024, Group and all countries were able to survive for a period of time with posit ive surpluses as deﬁned under each scenar io. The results take into account currency convertib il ity and portabil ity constra ints while calculating the liqu id ity surplus at Group level. Standard Chartered Bank’s credit ratings as at 31 December 2024 were A+ with stable outlook (Fitch), A+ with stable outlook (S&P) and A1 with posit ive outlook (Moody’s). As of 31 December 2024, the estimated contractual outﬂow of a three-notch long-term ratings downgrade is $1.0 bill ion. External wholesale borrowing A risk trigger is set to prevent excessive reliance on wholesale borrowing. With in the deﬁnit ion of wholesale borrowing, triggers are applied to all branches and operating subsid iar ies in the Group. Advances-to-deposits ratio This is deﬁned as the ratio of total loans and advances to customers relative to total customer deposits. An advances- to-deposits ratio below 100 per cent demonstrates that customer deposits exceed customer loans as a result of the emphasis placed on generating a high level of funding from customers. The Group’s advances-to-deposits ratio has remained stable in 2024 at 53.3 per cent. Deposits from customers as at 31 December 2024 are $486,261 mill ion (31 December 2023: $486,666 mill ion). 2024 2023 $mill ion $mill ion Total loans and advances to customers 1,2 259,269 259,481 Total customer accounts 3 486,261 486,666 Advances-to-deposits ratio 53.3% 53.3% 1 Excludes reverse repurchase agreement and other sim ilar secured lend ing of $9,660 mill ion and includes loans and advances to customers held at fair value through proﬁt and loss of $7,084 mill ion 2 Loans and advances to customers for the purpose of the advances-to-deposits ratio excludes $19,187 mill ion of approved balances held w ith central banks, conﬁrmed as repayable at the point of stress (31 December 2023: $20,710 mill ion) 3 Includes customer accounts held at fair value through proﬁt or loss of $21,772 mill ion (31 December 2023: $17,248 m ill ion) Net stable funding ratio (NSFR) The NSFR is a PRA regulatory requirement that stipulates inst itut ions to mainta in a stable fund ing proﬁle in relation to an assumed duration of their assets and off-balance sheet activ it ies over a one-year horizon. It is the ratio between the amount of available stable funding (ASF) and the amount of required stable funding (RSF). ASF factors are applied to balance sheet liab il it ies and cap ital, based on their perceived stabil ity and the amount of stable fund ing they provide. Likew ise, RSF factors are appl ied to assets and off-balance sheet exposures according to the amount of stable funding they require. The regulatory requirements for NSFR are to mainta in a rat io of at least 100 per cent. The average ratio for the past four quarters is 135 per cent. Liqu id ity pool The liqu id ity value of the Group’s LCR elig ible l iqu id ity pool at the reporting date was $170 bill ion. The ﬁgures in the table below account for haircuts, currency convertib il ity and portabil ity constra ints per PRA rules for transfer restrict ions (amount ing to $35 bill ion as at 31 December 2024), and therefore are not d irectly comparable with the consolidated balance sheet. A liqu id ity pool is held to offset stress outﬂows as deﬁned in the LCR per PRA rulebook. 2024 2023 $mill ion $mill ion Level 1 securit ies Cash and balances at central banks 76,094 81,675 Central banks, governments /public sector entit ies 74,182 71,768 Multilateral development banks and internat ional organ isat ions 14,386 16,917 Other 343 1,291 Total Level 1 securit ies 165,005 171,651 Level 2 A securit ies 4,367 13,268 Level 2 B securit ies 934 724 Total LCR elig ible assets 170,306 185,643 Risk review Risk proﬁle 252 Standard Chartered – Annual Report 2024 Liqu id ity analysis of the Group’s balance sheet (audited) Contractual maturity of assets and liab il it ies The following table presents assets and liab il it ies by matur ity groupings based on the remain ing per iod to the contractual maturity date as at the balance sheet date on a discounted basis. Contractual maturit ies do not necessar ily reﬂect actual repayments or cashﬂows. With in the tables below, cash and balances w ith central banks, interbank placements and investment securit ies that are fair valued through other comprehensive income are used by the Group princ ipally for l iqu id ity management purposes. As at the reporting date, assets remain predominantly short-dated, with 59 per cent maturing in less than one year. 2024 Between Between Between Between Between Between More than one month three six months nine months one year two years ﬁve years One month and three months and and nine and one and two and ﬁve and or less months six months months year years years undated Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Assets Cash and balances at central banks 55,646 – – – – – – 7,801 63,447 Derivat ive ﬁnancial instruments 22,939 15,556 12,217 7,265 4,328 7,067 7,448 4,652 81,472 Loans and advances to banks 1,2 22,381 21,722 10,588 6,771 4,986 8,407 3,715 1,990 80,560 Loans and advances to customers 1,2 65,688 58,765 25,739 15,479 16,192 31,240 31,766 94,688 339,557 Investment securit ies 1 13,016 25,886 21,546 14,789 14,688 32,815 41,423 62,418 226,581 Other assets 1 12,601 32,130 1,333 381 931 71 64 10,560 58,071 Total assets 192,271 154,059 71,423 44,685 41,125 79,600 84,416 182,109 849,688 Liab il it ies Deposits by banks 1,3 24,293 2,345 1,621 848 571 4,342 1,939 3 35,962 Customer accounts 1,4 379,926 37,502 25,863 10,152 10,123 9,695 47,367 2,635 523,263 Derivat ive ﬁnancial instruments 21,680 17,115 11,773 7,018 4,353 6,660 8,144 5,321 82,064 Senior debt 5 609 1,755 4,074 2,132 932 7,926 18,784 17,886 54,098 Other debt securit ies in issue 1 2,734 2,663 6,550 4,535 5,015 851 1,206 688 24,242 Other liab il it ies 12,173 43,574 3,020 1,441 155 4,494 682 2,854 68,393 Subordinated liab il it ies and other borrowed funds – 64 23 180 13 359 1,978 7,765 10,382 Total liab il it ies 441,415 105,018 52,924 26,306 21,162 34,327 80,100 37,152 798,404 Net liqu id ity gap (249,144) 49,041 18,499 18,379 19,963 45,273 4,316 144,957 51,284 2023 Assets Cash and balances at central banks 63,752 – – – – – – 6,153 69,905 Derivat ive ﬁnancial instruments 12,269 10,632 6,910 3,611 2,921 4,650 6,038 3,403 50,434 Loans and advances to banks 1,2 28,814 23,384 10,086 4,929 5,504 1,583 2,392 1,098 77,790 Loans and advances to customers 1,2 86,695 55,009 25,492 15,392 14,537 25,987 26,545 95,829 345,486 Investment securit ies 1 12,187 28,999 17,131 18,993 20,590 24,244 44,835 50,168 217,147 Other assets 1 17,611 31,729 1,286 409 587 67 93 10,300 62,082 Total assets 221,328 149,753 60,905 43,334 44,139 56,531 79,903 166,951 822,844 Liab il it ies Deposits by banks 1,3 26,745 1,909 1,398 503 778 1,326 2,848 2 35,509 Customer accounts 1,4 384,444 47,723 28,288 13,647 11,806 7,787 38,578 2,349 534,622 Derivat ive ﬁnancial instruments 13,111 12,472 6,655 4,001 3,433 5,142 6,932 4,315 56,061 Senior debt 5 130 1,111 1,537 1,389 624 11,507 20,127 14,443 50,868 Other debt securit ies in issue 1 3,123 5,822 6,109 3,235 3,037 492 482 195 22,495 Other liab il it ies 14,929 26,447 1,695 544 883 1,830 1,809 12,763 60,900 Subordinated liab il it ies and other borrowed funds 980 68 19 172 453 312 1,936 8,096 12,036 Total liab il it ies 443,462 95,552 45,701 23,491 21,014 28,396 72,712 42,163 772,491 Net liqu id ity gap (222,134) 54,201 15,204 19,843 23,125 28,135 7,191 124,788 50,353 1 Loans and advances, investment securit ies, depos its by banks, customer accounts and debt securit ies in issue include ﬁnanc ial instruments held at fair value through proﬁt or loss, see Note 13 Financ ial instruments 2 Loans and advances include reverse repurchase agreements and other sim ilar secured lend ing of $98.8 bill ion (31 December 2023: $97.6 b ill ion) 3 Deposits by banks include repurchase agreements and other sim ilar secured borrow ing of $8.7 bill ion (31 December 2023: $5.6 b ill ion) 4 Customer accounts include repurchase agreements and other sim ilar secured borrow ing of $37.0 bill ion (31 December 2023: $48.0 b ill ion) 5 Senior debt maturity proﬁles are based upon contractual maturity, which may be later than call options over the debt held by the Group Risk review and Capital review Standard Chartered – Annual Report 2024 253 Behavioural maturity of ﬁnanc ial assets and l iab il it ies The cashﬂows presented in the previous section reﬂect the cashﬂows that will be contractually payable over the residual maturity of the instruments. However, contractual maturit ies do not necessarily reﬂect the tim ing of actual repayments or cashﬂow. In practice, certain assets and liab il it ies behave differently from their contractual terms, especially for short- term customer accounts, credit card balances and overdrafts, which extend to a longer period than their contractual maturity. On the other hand, mortgage balances tend to have a shorter repayment period than their contractual maturity date. Expected customer behaviour is assessed and managed on a country basis using qualitat ive and quantitat ive techn iques, includ ing analys is of observed customer behaviour over time. Maturity of ﬁnanc ial l iab il it ies on an und iscounted basis (audited) The following table analyses the contractual cashﬂows payable for the Group’s ﬁnancial l iab il it ies by rema in ing contractual maturit ies on an und iscounted basis. The ﬁnanc ial liab il ity balances in the table below will not agree with the balances reported in the consolidated balance sheet as the table incorporates all contractual cashﬂows, on an undiscounted basis, relating to both princ ipal and interest payments. Derivat ives not treated as hedg ing derivat ives are included in the ‘On demand’ time bucket and not by contractual maturity. With in the ‘More than ﬁve years and undated’ matur ity band are undated ﬁnancial l iab il it ies, the majority of wh ich relate to subordinated debt, on which interest payments are not included as this informat ion would not be mean ingful, given the instruments are undated. Interest payments on these instruments are included with in the relevant matur it ies up to ﬁve years. 2024 Between Between Between Between Between More than one month three Between six nine months one year two years ﬁve years One month and three months and months and and one and two and ﬁve and or less months six months nine months year years years undated Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Deposits by banks 24,303 2,360 1,660 862 589 4,347 1,939 4 36,064 Customer accounts 380,377 37,790 26,277 10,384 10,438 9,937 47,642 3,396 526,241 Derivat ive ﬁnancial instruments¹ 80,055 13 12 10 3 216 592 1,163 82,064 Debt securit ies in issue 3,622 4,551 11,007 7,056 6,319 10,261 23,184 21,337 87,337 Subordinated liab il it ies and other borrowed funds 19 134 46 206 14 392 2,345 13,800 16,956 Other liab il it ies 10,421 44,933 2,894 1,408 152 4,433 682 4,802 69,725 Total liab il it ies 498,797 89,781 41,896 19,926 17,515 29,586 76,384 44,502 818,387 2023 Deposits by banks 26,759 1,921 1,417 513 790 1,328 2,848 4 35,580 Customer accounts 385,361 48,140 28,763 14,049 12,190 8,118 39,000 3,036 538,657 Derivat ive ﬁnancial instruments¹ 53,054 517 46 44 103 202 887 1,208 56,061 Debt securit ies in issue 3,507 6,995 8,015 5,070 4,002 13,663 23,413 16,396 81,061 Subordinated liab il it ies and other borrowed funds 1,043 134 46 208 570 395 2,389 14,367 19,152 Other liab il it ies 12,200 26,291 1,560 515 884 1,832 1,810 11,513 56,605 Total liab il it ies 481,924 83,998 39,847 20,399 18,539 25,538 70,347 46,524 787,116 1 Derivat ives are on a d iscounted basis Risk review Risk proﬁle 254 Standard Chartered – Annual Report 2024 Interest Rate Risk in the Banking Book The following table provides the estimated impact to a hypothetical base case project ion of the Group’s earn ings under the following scenarios: • A 50 basis point parallel interest rate shock (up and down) to the current market-impl ied path of rates, across all yield curves • A 100 basis point parallel interest rate shock (up and down) to the current market-impl ied path of rates, across all yield curves These interest rate shock scenarios assume all other economic variables remain constant. The sensit iv it ies shown represent the estimated change to a hypothetical base case projected net interest income (NII), plus the change in interest rate impl ied income and expense from FX swaps used to manage banking book currency posit ions, under the d ifferent interest rate shock scenarios. The base case projected NII is based on the current market- impl ied path of rates and forward rate expectat ions. The NII sensit iv it ies below stress th is base case by a further 50 or 100bps. Actual observed interest rate changes will likely differ from market expectation. Accordingly, the shocked NII sensit iv ity does not represent a forecast of the Group’s net interest income. The interest rate sensit iv it ies are ind icat ive stress tests and based on simpl iﬁed scenar ios, estimat ing the aggregate impact of an unantic ipated, instantaneous parallel shock across all yield curves over a one-year horizon, includ ing the time taken to implement changes to pric ing before becom ing effective. The assessment assumes that the size and mix of the balance sheet remain constant and that there are no specif ic management act ions in response to the change in rates. No assumptions are made in relation to the impact on credit spreads in a changing rate environment. Sign iﬁcant modell ing and behavioural assumptions are made regarding scenario simpl iﬁcation, market compet it ion, pass-through rates, asset and liab il ity re-pric ing tenors, and price ﬂooring. In particular, the assumption that interest rates of all currencies and maturit ies sh ift by the same amount concurrently, and that no actions are taken to mit igate the impacts aris ing from th is are considered unlikely. Reported sensit iv it ies w ill vary over time due to a number of factors includ ing changes in balance sheet composit ion, market condit ions, customer behav iour and risk management strategy. Therefore, while the NII sensit iv it ies are a relevant measure of the Group’s interest rate exposure, they should not be considered an income or proﬁt forecast. 2024 Estimated one-year impact Other to earnings from a parallel currency shift in yield curves at the USD bloc HKD bloc SGD bloc KRW bloc CNY bloc INR bloc EUR bloc bloc¹ Total beginn ing of the per iod of: $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion + 50 basis points 20 30 10 20 20 30 10 70 210 - 50 basis points (40) (30) (20) (20) (30) (30) (20) (80) (270) + 100 basis points 30 60 20 30 30 40 30 150 390 - 100 basis points (90) (50) (40) (50) (50) (40) (40) (190) (550) 2023 Estimated one-year impact to earnings from a parallel Other shift in yield curves at the USD bloc HKD bloc SGD bloc KRW bloc CNY bloc INR bloc EUR bloc currency Total beginn ing of the per iod of: $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion bloc¹ $mill ion + 50 basis points 90 10 50 10 30 20 30 110 350 - 50 basis points (150) (30) (50) (20) (40) (30) (30) (120) (470) + 100 basis points 180 10 100 20 60 40 50 230 690 - 100 basis points (280) (40) (100) (40) (80) (60) (60) (230) (890) 1 The largest exposures with in the Other currency bloc are GBP,JPY, MYR, TWD As at 31 December 2024, the Group estimates the one-year impact of an instantaneous, parallel increase across all yield curves of 50 basis points to increase projected NII by $210 mill ion. The equ ivalent impact from a parallel decrease of 50 basis points would result in a reduction in projected NII of $270 mill ion. The Group est imates the one-year impact of an instantaneous, parallel increase across all yield curves of 100 basis points to increase projected NII by $390 mill ion. The equivalent impact from a parallel decrease of 100 basis points would result in a reduction in projected NII of $550 mill ion. The beneﬁt from ris ing interest rates is primar ily from reinvest ing at h igher yields and from assets re-pric ing faster and to a greater extent than deposits. NII sensit iv ity in falling rate scenarios has decreased versus 31 December 2023, due to an increase in programmatic hedging as well as actions taken in discret ionary portfol ios to increase asset duration. Over the course of 2024 the notional of interest rate swaps and HTC-accounted bond portfolios used to reduce NII sensit iv ity through the cycle increased from $47 bill ion to $64 bill ion. As at December 2024, the portfol ios had a weighted average maturity of 3.0 years, which reﬂects the behavioural ised l ives of the rate-insens it ive deposit and equity balances that they hedge, and a yield of 3.5 per cent. Risk review and Capital review Standard Chartered – Annual Report 2024 255 Operational and Technology Risk Operational and Technology Risk proﬁle The implementat ion of standard ised non-ﬁnanc ial r isk, control and causal taxonomies is enabling improved risk aggregation and reporting, and has provided opportunit ies for simpl ify ing the process for risk ident iﬁcation and assessment in the Group. Operational and Technology Risk is elevated in areas such as Change Mismanagement Risk and Third-Party Risk Management, which are subject to ongoing control enhancement programmes. Other key areas of focus are Systems Health/Technology risk, Operational Resil ience and Regulatory Compliance. To address these areas, the Group has focused on improv ing the susta inable operating environment and has in it iated several programmes to enhance the control environment. The Group continues to monitor and manage Operational and Technology risks associated with the external environment such as geopolit ical factors, the increas ing r isk of cyber-attacks and inappropr iate use of Artif ic ial Intelligence. This enables the Group to keep pace with the new business developments, while ensuring that its risk and control frameworks evolve accordingly. The Group continues to strengthen its risk management to understand the full spectrum of risks in the operating environment, enhance its defences and improve resil ience. Operational and Technology risk events and losses Operational losses are one ind icator of the effect iveness and robustness of our non-ﬁnancial r isk and control environment. The Group’s proﬁle of operational loss events in 2024 and 2023 is summarised in the table below, which shows the distr ibut ion of gross operational losses by Basel business line. There has been a sharp increase in Corporate Items in 2024 due to a single large event pertain ing to F inance Accounting Adjustment. % Loss Distr ibut ion of Operational losses by Basel business line 2024 2023¹ Agency Services 0.0% 3.9% Asset Management 0.0% 0.2% Commercial Banking 1.4% 8.0% Corporate Finance 0.1% 7.2% Corporate Items 72.5% 34.3% Payment and Settlements 7.6% 16.6% Retail Banking 17.0% 21.3% Retail Brokerage 0.0% 0.0% Trading and Sales 1.4% 8.6% 1 Losses in 2023 have been restated to include incremental events recognised in 2024 The Group’s proﬁle of operational loss events in 2024 and 2023 is also summarised by Basel event type in the table below. It shows the distr ibut ion of gross operational losses by Basel event type. % Loss Distr ibut ion of Operational losses by Basel event type 2024 2023¹ Business disrupt ion and system fa ilures 1.8% 4.7% Clients products and business practices 14.1% 2.9% Damage to physical assets 0.0% 0.0% Employment practices and workplace safety 0.1% 0.6% Execution delivery and process management 81.5% 77.3% External fraud 2.4% 14.4% Internal fraud 0.1% 0.2% 1 Losses in 2023 have been restated to include incremental events recognised in 2024 Other princ ipal r isks The losses aris ing from operat ional failures for other princ ipal and integrated risks are reported as operational losses. Operational losses do not include operational risk-related credit impa irments. 256 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle Discla imer For the avoidance of doubt, this Climate Risk section is subject to the statements included in (i) the ‘Forward- Looking Statements’ section; and (i i) the ‘Bas is of Preparation and Caution Regarding Data Lim itat ions’ section provided under ‘Important Notices’ at page 397. Managing Climate Risk Environmental, Social and Governance and Reputational (ESGR) Risk is deﬁned as the risk of potential or actual adverse impact on the environment and/or society, or to the Group’s ﬁnancial performance, operat ions or name, brand or standing, aris ing from env ironmental, social or governance factors, or as a result of the Group’s actual or perceived actions or inact ions. ESGR Risk continues to be an area of growing importance, driv ing a need for strateg ic transformation across business activ it ies and risk management. An environmental (such as climate), social or governance event, or change in condit ion, if it occurs, could result in actual or potential ﬁnanc ial loss or non-ﬁnancial detr iments to the Group. As such, Climate Risk is ident iﬁed as a mater ial risk for the Group, which is integrated across relevant Princ ipal Risk Types (PRTs) and is managed via the ESGR Risk Type Framework. The Group is exposed to climate risk through our clients, own operations, vendors, suppliers and from the industr ies and markets we operate in. Climate Risk Taxonomy Climate Risk The potential for ﬁnanc ial loss and non-ﬁnancial detr iments aris ing from cl imate change and society’s response to it. Physical Risk Risks aris ing from increas ing sever ity and frequency of climate and weather-related events, which can damage property and other infrastructure, disrupt supply chains, and impact food production. Addit ionally, they may lead to decl in ing assets valuat ions and challenges with insurance claims, resulting in greater ﬁnanc ial losses. Ind irect effects on the macroeconomic environment, such as lower output and productiv ity, may exacerbate these d irect impacts. Acute Specif ic event-dr iven weather events, includ ing increased severity of extreme weather events, such as cyclones, hurricanes, ﬂoods, or wildf ires. Chronic Longer-term shifts in climate patterns, such as changing precip itat ion patterns, sea-level rise, and longer-term drought. Transit ion R isk Risk aris ing from the adjustment towards a carbon-neutral economy, wh ich will require sign iﬁcant structural changes to the economy. These changes w ill prompt a reassessment of a wide range of asset values, a change in energy prices, and a fall in income and creditworth iness of some borrowers. In turn, th is leads to credit losses for lenders and market losses for investors. The Board committees consider climate-related risks and opportunit ies when rev iew ing and gu id ing strateg ic decis ions. Board-level oversight is exercised through the Board Risk Committee (BRC), and regular climate risk updates are provided to the Board and BRC. At an executive level, the Group Risk Committee has appointed the Climate Risk Management Committee (CRMC), consist ing of sen ior representatives from business, risk, and other functions such as Internal Audit, which oversees Climate Risk includ ing the implementat ion of Cl imate Risk workplan and progress made by the Group in meeting regulatory requirements. Key ﬁnancial regulators across our footpr int have proposed or set supervisory expectations on climate and environmental risk management. Those expectations are broadly aligned with the Basel Committee princ iples for the management of climate-related ﬁnanc ial r isks, but local implementat ions vary. We actively engage with industry bodies and regulators to seek consistency in policy making across our markets. Climate Risk-related regulatory developments and obligat ions set by both ﬁnancial and non-ﬁnancial serv ice regulators are tracked at Group and country level, with roles and responsib il it ies set out in the Group’s ESGR Risk Policy. Key regulatory trends we observe include: • Disclosures: Elevated volume of proposals, updates or new climate and sustainab il ity-related disclosure requirements across the markets in which we operate. This is partially driven by the adoption and implementat ion of Internat ional Sustainab il ity Standards Board and European Sustainab il ity Reporting Standards. • Risk management: Regulators continued to drive the integrat ion of Cl imate Risk into day-to-day business/ operations for regulated ﬁnanc ial inst itut ions, moving their focus towards stress testing and scenario analysis. Regulators have also started to look at the transit ion planning process in some markets. • Taxonomies and product-related standards: Financ ial regulators and leading industry bodies continued to report, consult, and set rules and guidel ines around sustainable ﬁnance product frameworks and reporting. The key concern remains ensuring market integr ity and greenwashing prevention. For more informat ion on the Group’s governance approach for climate-related risks and opportunit ies, see pages 98 to 102 . Climate Risk Appetite metrics Our Climate Risk Appetite Statement is approved annually by the Board and supported by Board RA metrics and Management Team Lim its (MTLs) across impacted risk types. The Board RA metrics are approved by the Board and the MTLs by the Group Risk Committee annually and any breaches of either are reported to the Board Risk Committee and Group Risk Committee. Climate Risk 257 Standard Chartered – Annual Report 2024 Risk review and Capital review Group Climate Risk Appetite Statement “The Group aims to measure and manage ﬁnanc ial and non-ﬁnancial r isks aris ing from cl imate change, and reduce the emiss ions related to our own act iv it ies and those related to the ﬁnancing of cl ients in alignment with the Paris Agreement.” We have cross-cutting Board RA metrics and MTLs across WRB Risk, CIB Risk, Traded Risk, Country Risk and an enterprise-wide metric focusing on the divergence of key sectors (Power, Oil and Gas, Automotive Manufacturing, Steel, Alumin ium and Cement) from the Group’s net zero pathway. As part of our annual Risk Appetite review, we continue to focus on evaluating current metrics, tighten ing l im its where necessary and expanding coverage for enhanced risk ident iﬁcation and management. A rev ised Risk Appetite statement will be in effect from 2025, combin ing Cl imate Risk and Reputational and Sustainab il ity Risk for a more comprehensive coverage. Key Risk Appetite metrics are cascaded to all relevant markets, supported by management informat ion. The country Climate Risk proﬁle is also reviewed at country-level risk committees for all subsid iar ies. Processes for ident ify ing and assessing Climate Risks Climate Risk is becoming increas ingly cr it ical as cl imate- related events continue to unfold globally, accompanied by ris ing regulatory expectat ions. In response, we have entered into strategic partnerships to develop or gain access to various toolkits to quantitat ively measure cl imate-related physical and transit ion r isks. For example, the Climate X Spectra platform delivers location-specif ic r isk ratings, damages and revenue losses for extreme weather events linked to climate change, covering private and listed corporates as well as real estate. The hazard library includes 12 hazard types (e.g. ﬂooding, wildf ires, and tropical cyclones) for time horizons until 2100 under the four Representative Concentration Pathway (RCP) and four Shared Socioeconom ic Pathways (SSPs) scenar ios. Focus for 2025 and beyond will include improv ing the ﬁnancial quantif icat ion aspects leveraging Climate X data, which will enable enhanced loss estimat ion from phys ical risk hazard events. We have worked with our vendors to develop our internal transit ion r isk models. This will be extended to addit ional sectors and phys ical risk assessment in 2025 to further reduce our reliance on third-party models. Internal train ing programmes to better ident ify and mit igate r isk In order to effectively embed climate risks across the Group, we have rolled out a comprehensive eight-module role- specif ic Cl imate Risk and net zero credit certif icat ion. This includes a core module covering climate change science, transit ion scenar ios, Climate Risk Assessments (CRAs) and net zero targets and alignment calculations, and a sector-specif ic train ing, focus ing on Oil and Gas, Power, Steel, Alumin ium, Shipp ing and Automob ile clients. This augments our exist ing foundational sustainab il ity train ing wh ich covers climate risk at a basic level. We recognise that various countries have been stepping up their regulatory requirements and monitor ing in relation to climate risk. In response to this trend, we continue to provide our senior risk ofﬁcers in country with dedicated train ing and work ing group updates. Period ic tra in ing sess ions on Climate Risk integrat ion cont inue to be provided to the ﬁrst and second line of defence to further strengthen the understanding of Climate Risk and its applicat ion w ith in the Group. Lim itat ions with exist ing tools and data We recognise that assessing climate risk has its lim itat ions as quantify ing approaches are st ill evolving: • Data availab il ity and client coverage continue to pose challenges, especially in emerging markets. With the lim ited coverage of granular client-level informat ion at both Group and entity level, there is reliance on use of proxies e.g. sector and regional averages, sovereign heatmaps, and credit grade projections and movements. • Further, most tools and modelling approaches present a gross risk proﬁle that often overlooks exist ing adaptat ion measures, as well as government polic ies to protect and build for changing climate. Assumptions in climate modelling also continue to rely on nascent methodologies which do not factor non-linear shifts and complex feedback loops or the social dimens ion of cl imate change. • Over time, sovereigns and policymakers are expected to drive market trends, such as investment in adaptation plans, technological advancements, innovat ive r isk transfer and mit igat ion approaches to combat the potential impacts of climate change. Notwithstand ing the above, we have observed an improvement in data coverage since the creation of our Climate Analyst team in the ﬁrst line of defence and development of internal climate risk models. Addit ionally, we have created a centralised data store to enable the Group to capture all sustainab il ity-related data for our clients. This includes monitor ing of the data qual ity, in order to reduce the usage of proxies over time. We intend to reﬁne our evaluations and methodologies progressively as the availab il ity and quality of data improves. The data we have captured through various sources has helped us develop our client-level CRAs for exist ing and new clients, improve our internal climate modelling capabil it ies and strengthen the risk measurement and monitor ing of our portfolios. Notwithstand ing the l im itat ions noted above, we can conclude that the results presented below across the various PRTs provide strategic direct ion in relation to the risks measured. Looking ahead We expect a continu ing trend of change in the coming years, includ ing: ( i) a greater focus on our Physical Risk measurement capabil it ies across data, CRAs, scenario analysis, reporting and model development; (i i) streaml in ing cl ient-level assessments across ﬁnancial and non-ﬁnancial ESGR R isk (i i i) integrat ing cl ient transit ion plans in CRAs, scenario analysis and models; (iv) upskill ing employees to enhance portfol io management and oversight on clients exposed to ESGR Risk or divergent from our net zero targets; (v) operational is ing support for countries with local ESGR-related regulations, stress testing requirements and disclosures; and (vi) further embedding greenwashing risk. Managing the ﬁnanc ial and non-ﬁnancial r isks from climate change We manage Climate Risk according to the characterist ics of the impacted PRTs. Risk Framework Owners for the impacted PRTs are responsible for embedding Climate Risk requirements with in the ir respective risk types. In 2024, we have continued to embed Climate Risk into exist ing r isk management frameworks and processes. The Climate Risk ident iﬁcation and assessments across the PRTs span across short, medium, and long-term horizons to enable right level of monitor ing and to inform the decis ion-mak ing process. See page 89 for more informat ion on the deﬁnit ions for short, medium and long-term horizons. 258 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle Credit Risk We have developed a Climate Risk management framework, which outlines the approach for a baseline level of effective risk mit igat ion. Wealth & Retail Banking (WRB) Credit Risk In 2024, we progressed further in our journey to embed Climate Risk into our monitor ing and r isk management across products and segments in the WRB portfolio. In terms of risk assessment coverage, as of September 2024, we have assessed Physical Risk for 77 per cent and Transit ion R isk for 52 per cent of the overall WRB portfolio. CCPL Private Banking SME Banking Consumer Mortgage Overall WRB 78% 22% 76% 47% 1% 23% 24% 53% 99% 77% Physical Risk measurement and monitor ing in WRB (as of September 2024) Physical Risk assessed Physical Risk not assessed CCPL Private Banking SME Banking Consumer Mortgage Overall WRB 100% 67% 77% 44% 48% 33% 23% 56% 52% Transit ion R isk measurement and monitor ing in WRB (as of September 2024) Transit ion R isk assessed Transit ion R isk not assessed Outstanding Exposures Assessed of which Overall WRB Consumer Mortgage SME Banking Private Banking CCPL Physical Risk 96.7 75.7 5.1 3.2 12.7 Transit ion R isk 65.6 42.8 2.3 4.3 16.2 1. Physical Risk management approach for WRB Risk ident iﬁcation and assessment Secured portfolios (backed by resident ial, commerc ial or industr ial property) For our portfolios secured against property collateral, assessments are based on the underlying resident ial, commercial, or industr ial property. We cont inue to leverage Munich Re’s Risk Suite (Natural Hazards Edit ion) to measure acute and chronic Physical Risk impact ing each asset based on their geolocation. Unsecured portfolios For our unsecured portfolio, such as credit cards and personal loans, we assess Physical Risk that may have the potential to drive higher credit losses through second-order impacts that affect our customers’ abil ity to repay, employ ing proxies aligned to credit portfolio risk proﬁles. In 2024, we enhanced the proxy methodology, using a sign iﬁcantly larger and more representative sample that provided greater stabil ity and accuracy in the resultant risk proﬁles. Risk monitor ing and report ing We assess the exposure concentrations subjected to high risk across acute and chronic hazards quarterly and reported these at-risk management committees at Group, region, and country, with a focus on ﬂood risk and ris ing sea levels, due to the inherent risk proﬁles of our operating markets. Throughout 2024, physical risk levels across most products and markets have remained largely stable, apart from slight variat ions in exposure subjected to high ﬂood risk due to Munich Re’s storm surge model update, which led to more granular and accurate risk assessments. Risk management Physical risk in the resident ial mortgage portfol io is primar ily mit igated under the ex ist ing cred it underwrit ing process through the setting of prudent loan-to-value lim its, wh ich is supported by a robust and independent property valuation process, as well as the requirement of insurance for the life of the loan. To mit igate the res idual risk, which may begin to material ise for our res ident ial mortgages w ith sustained exposure to heightened Physical Risk, some markets have started establish ing zon ing polic ies that involve the ident iﬁcation of h igh Physical Risk zones and the implementat ion of d ifferent iated underwr it ing pol icy criter ia target ing new mortgages orig inat ing from these higher-risk regions. 259 Standard Chartered – Annual Report 2024 Risk review and Capital review Assessment of acute and chronic Physical Risk for top 10 markets’ exposures backed by property collateral, ind icat ing exposure concentration subjected to high gross risk (as of September 2024) Proportion of book Global Korea Hong Kong Taiwan 23% 38% 7% Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Flood Risk 13.1% 12.9% 10.6% 10.8% 16.2% 16.3% 11.3% 11.3% Sea-level rise (Year 2100, RCP 8.5) 2.3% 2.3% 0.6% 0.6% 3.6% 3.6% 0.0% 0.0% Proportion of book India Singapore Malaysia UAE 5% 18% 4% 1% Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Flood Risk 18.2% 17.0% 4.6% 4.4% 5.1% 5.2% 6.6% 5.5% Sea-level rise (Year 2100, RCP 8.5) 1.0% 0.9% 0.1% 0.1% 0.2% 0.3% 36.2% 36.0% Proportion of book Jersey Vietnam China 2% 1% 2% Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Q3-23 Q3-24 Trend Flood Risk 21.9% 19.4% 53.3% 51.1% 50.2% 47.8% Sea-level rise (Year 2100, RCP 8.5) 0.0% 0.0% – 1.2% 1.5% 8.3% 8.6% Note: Movements are called out for markets showing a change of more than 5 per cent year-on-year change in exposure concentration subjected to high Physical Risk. The Q3 2023 exposure concentrations have been rebased using the updated Munich Re Risk Suite following the storm surge model update. 2. Transit ion R isk management approach for WRB Unlike the UK and Europe, our key resident ial mortgage markets in Asia, Africa and the Middle East continue to have no regulatory policy requirements around min imum bu ild ing energy-efﬁciency standards or government-mandated energy- efﬁciency rat ing schemes such as energy performance certif icates (EPC). As such, we cont inue to leverage alternate approaches to gain an early understanding of the proportion of our key mortgage portfolios that may be potentially affected by transit ion r isk, through quantify ing the robustness of our cl ients’ income to sustain potential increases in energy spend. In 2024, we refreshed the transit ion r isk assessment of our key mortgage portfolios based on year-end 2023 data, enabling us to do a year-on-year comparison against year-end 2022 results. Based on the analysis in the past two years, we see no material movements and continue to observe low transit ion r isk levels across our key resident ial mortgage markets. In the future, once addit ional data becomes ava ilable, we aim to account for valuation-related risks of property collateral due to transit ion r isk, which we believe is the most sign iﬁcant trans it ion r isk driver for resident ial mortgages. Transit ion R isk ratings using Group mortgage baselin ing approach by exposure concentrat ion (as of December 2023) – Singapore, Hong Kong, Taiwan Very high High Medium Low Very Low 5% 1% 1%1% 91% Singapore $9.4bn 8% 1% 90% Hong Kong $28.8bn 19% 9% 6% 12% 53 % Taiwan $4.1bn For the Jersey resident ial mortgage portfol io, which is largely made up of buy-to-let properties located in the UK, we used EPC data to assess the energy-efﬁciency d istr ibut ion, with results ind icat ing that circa 80 per cent of the portfolio with available EPC ratings is rated C or better. 260 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle 2. Transit ion R isk management approach for WRB continued Transit ion R isk ratings for resident ial mortgages in Jersey using EPC ratings by exposure concentration (as of August 2024) EPC ratings for resident ial mortgages in Jersey, by count (as of August 2024) 15 % 15% 6% 0.3% 64% Jersey $0.3bn A B C D E E D C B A E D C B A E D C B A Prior to 2000 2000 - 2021 2022 onwards 4% 0% 2% 8% 0% 1% 9% 0% 9% 3% 3% 60% 0% 0% 0% We continue to explore ways to enhance our assessment approaches across both secured and unsecured WRB portfolios through improved methodologies and data. This will enable us to better assess the susceptib il ity to and readiness of our clients in managing climate-driven risks, while also enabling us to ident ify opportun it ies to ass ist them in their transit ion towards a low-carbon economy. Our key focus for 2025 includes expanding the scope of our exist ing cred it orig inat ion process to cover climate-related considerat ions to small and med ium business clients. This will enable us to better understand the physical and transit ion r isks faced by our clients, as well as their readiness in adapting to these increas ingly consequent ial risks. Corporate & Investment Banking (CIB) Credit Risk 1. 2. 3. 4. 5. • Control Sample Testing • Independent assurance • Data gathering • Client outreach • Scenario analysis Climate Risk Assessment (BRAG) • Credit underwrit ing pr inc iples • Risk Appetite (% Black or Red) • High Climate Risk clients monitor ing 5. Controls and assurance 1. Identify risks and mit igat ion plans 2. Analysing the risks 4. Portfolio management and monitor ing 3. Evaluating the risk Mit igat ing factors Time impact horizon Green Amber Red Black Business Credit Applicat ion (BCA) • Review and approval • BCA analysis • Risk triggers • Financ ial impacts • Warning signals This section covers details of how we assess climate risk for our corporate clients, includ ing ins ights ga ined from our client-level assessments and progress made to further strengthen our framework for climate and credit related portfolio and risk management. The ﬁgure below outlines our process in assessing climate risk. 261 Standard Chartered – Annual Report 2024 Risk review and Capital review Data sources and disclosures Reporting • Sources of data • Level of disclosures, Carbon Disclosures Project rating Gross Physical Risk Exposure to acute and chronic events • Asset locations exposed to physical risk events (ﬂoods, storms, droughts etc) • Model output to assess current and future risk to client’s operating locations Physical Risk adaptation Mit igat ions to acute and chronic events • Assessment of client’s adaptation plans • Insurance coverage to protect against physical risk Gross Transit ion Risk Relative emiss ions for sector and region • Reliance on fossil fuel/carbon products, net zero trajectory alignment • Policy, environmental impact due to sovereign decarbonisat ion policy in sector • Potential ﬁnanc ial impact from various climate scenarios Credib il ity of Transit ion Plans (CTPs) Decarbonisat ion plan, governance and emiss ion targets • Assess client’s plans and its credib il ity to transit ion its business and supply chain backed by robust governance mechanisms • Emiss ions report ing targets and plan to achieve them • Capex in low-carbon technologies, internal carbon pric ing scenar ios Our client-level Climate Risk Questionna ire (CRQ) helps assess the potent ial ﬁnanc ial r isks from climate change using quantitat ive and qual itat ive informat ion. The assessment presents a consol idated view across ﬁve pillars of how exposed and ready for transit ion or adaptat ion our clients may be. Out of the ﬁve pillars, the ﬁrst one relates to ident ify ing relevant data sources and disclosures and is the only section that is not scored. 1. Identify risks and mit igat ion plans The CRQ helps us to form a view of the overall Climate Risk proﬁle of our clients and supports the underlying themes that feed into our broader scenario analysis and corporate planning exercises. Following enhancement in 2023, the CRQ was used to assess our portfolio in 2024. In late 2024, we launched the fourth version of the CRA, which introduced net zero alignment metrics to inform Transit ion R isks and the outputs from internal models. A key focus for 2025 and beyond is to improve the ﬁnancial quant if icat ion of Physical Risk in the CRA, leveraging Climate X data, which will enable enhanced loss estimat ion from physical risk hazard events. We have also started to grade Physical Risk for property and shipp ing backed collaterals. Coverage of our analysis As of September 2024, we completed CRAs for 4,065 clients, representing circa 71 per cent of our corporate client lim its. The levels and consistency in the availab il ity of climate informat ion from publ ic disclosures has increased in the last three years, however, this is still a developing aspect in some of our footprint markets where the transit ion journey is in its nascent stages. The difference between our own ambit ions and the nat ionally disclosed contribut ions in some of our markets has further highl ighted the importance of engaging with our clients on this topic, so we are able to assess clients across our markets appropriately. See pages 74 to 89 for more informat ion on our net zero asp irat ion. How different markets in our footprint compare Clients are assessed across the four pillars relating to gross physical and transit ion r isk, as well as their respective mit igat ion levels, i.e. physical risk adaptation and credib il ity of transit ion plan, each of wh ich are scored between 0 and 100 per cent, with a higher score ind icat ing a better result (e.g. lower risk or higher mit igat ion levels). The average of these scores across all assessed clients is shown below by market. Client-level Climate Risk Assessment scores by markets 2024 YTD Assessment Number of clients Gross Physical score Physical Risk adaptation Gross Transit ion Risk Credib il ity of Transit ion Plan Asia – Greater China & North Asia 1,714 65% 33% 51% 52% Asia – ASEAN & South Asia 939 56% 28% 49% 46% Africa & Middle East 343 65% 14% 51% 30% Europe & Americas 1,069 69% 51% 52% 73% Total 4,065 64% 35% 51% 54% 262 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle • Transit ion R isk scores remained fairly stable and improved across regions. – We continue to see better Credib il ity of Transit ion and Phys ical Risk adaptation scores for corporates domic iled in Europe and Americas, where disclosure levels are highest, 2050 net zero plans have been committed to, and the plans to effectively manage Climate Risk are being put in place. – There has been a slight slowdown in the pace of transit ion plann ing at corporate level given the focus on energy security amidst increased geopolit ical pressures. However, the long-term trend of gradual increase in quantif iable cl imate change commitments, driven by increas ing CTPs numbers across markets, is intact. • Physical Risk adaptation continues to be area of concern for major ity of our markets, w ith the lowest absolute scores in Africa and the Middle East followed by Asia. • Asia dominates our total volume of clients, with a 65 per cent share of the global client base assessed (2023: 65 per cent; 2022: 62 per cent). Clients are deemed to have very high exposure to Transit ion R isk with little or no mit igat ion plans Clients are deemed to have very high exposure to Transit ion R isk but with acceptable or good mit igat ion plans Clients are deemed to have high exposure to Transit ion R isk but with acceptable or good mit igat ion plans. Green Clients are deemed to have low or lim ited exposure to Trans it ion R isk Black Red Amber 2. Analysing the Climate Risk BRAG ratings Each client is assigned a colour-coded Climate Risk rating (Black “B”, Red “R”, Amber “A”, Green “G” BRAG) based on the gross transit ion r isk and transit ion r isk mit igat ion. Owing to Physical Risk data being less robust, we have focused only on Transit ion R isk drivers to compute the Climate Risk grading. However, as highl ighted in the section above, we have seen a steady improvement in the coverage of Physical Risk data in the last few years. We are in the process of incorporating a methodology to include both physical and transit ion r isk drivers to assess the climate risk faced by a client. There are currently four types of BRAG ratings assigned to clients. The chart below shows a distr ibut ion of Green, Amber, Red, Black rated clients across our markets split by the outstanding exposure as of September 2024. Black-rated clients currently account for less than one per cent of our assessed exposure. ASEAN and South Asia 2 Asia – GCNA 1 Africa & Middle East Europe & Americas 1 GCNA countries include China, Hong Kong, Japan, Republic of Korea and Taiwan 2 ASEAN and South Asia countries include Australia, Bangladesh, Indonesia, India, Sri Lanka, Marshall Islands, Macau, Malaysia, Nepal, Phil ipp ines, Singapore, Thailand and Vietnam 21% 1% 78% 18% 4% 78% 21% 4% 75% 27% 6% 68% Portfolio Distr ibut ion across key markets Green Amber Red Black 3. Evaluating the risk (linkage to credit process) Once a Climate Risk grading is assigned to a client, the impacts from climate-related risks are integrated into the exist ing cred it approval process qualitat ively and/or quantitat ively through inclus ion w ith in the bus iness risk analysis and ﬁnanc ial modell ing. If the risks are deemed material and not adequately represented via the exist ing credit rating of the client, subject ive warn ing signals may be added to inﬂuence the credit rating. Addit ionally, r isk triggers are added to monitor risks that are not adequately mit igated and to seek add it ional informat ion from the cl ient where applicable. 4. Portfolio management and monitor ing A. Orig inat ion stage We have embedded qualitat ive and quant itat ive cl imate considerat ions into the Group’s credit underwrit ing pr inc iples for Oil and Gas, Metals and Min ing, Sh ipp ing, Commerc ial Real Estate (CRE) and Project Finance portfolios. This includes introduc ing portfol io-level caps for Black and Red rated clients and lower preference for emiss ion- intens ive transact ions. The underlying princ iples vary depend ing on the sector and are intended to help steer the portfolio in the desired direct ion over the medium term, and also consider the Group’s 2030 ﬁnanced emiss ion targets. B. Exposure monitor ing and R isk Appetite thresholds Concentration of Black and Red Climate Risk rated clients remain with in proposed R isk Appetite thresholds across our portfolio as of September 2024. Our Green-rated clients are concentrated in more developed markets and this reﬂects the higher level of Climate Risk disclosures and governance established by companies in these markets. Asia has the highest proportion of exposure, which is rated Red. Amongst the key markets, Bangladesh, Nepal, Vietnam and Indonesia drive this higher risk concentration due to a combinat ion of clients that have fewer disclosures and high Transit ion R isk, particularly fossil fuel heavy industr ies, and some impos it ion of carbon taxes and polic ies to trans it ion the broader nat ion. This, combined with weaker transit ion plans, leads corporates in these markets to be rated as higher Climate Risks. C. Credit mit igat ion – collateral We have expanded coverage of Climate Risk and Credit Risk considerat ions to assess corporate cl ients’ collateral, given they serve as key risk mit igants, espec ially in default events. In 2024, an internal methodology was established to ident ify, assess and incorporate appropriate climate-related risks in property and shipp ing collateral of corporate cl ients that were assessed as part of the client-level CRA. 263 Standard Chartered – Annual Report 2024 Risk review and Capital review D. High risk client monitor ing A key strategic focus area going forward is to fully embed Climate Risk and net zero targets into business and credit decis ions. To enable th is, the Net Zero Climate Risk Working Forum (Forum) meets quarterly to discuss account plans for high Climate Risk and net zero divergent clients. Five meetings have been held so far since Q4 2023. The Forum has reviewed Client Groups for Climate Risk and net zero commitment related risks across Power Generation, Oil and Gas, Steel, Cement, Alumin ium, CRE and Commod ity Trading sectors. The focus of these meetings is to: • increase engagement with the selected clients to gain a deeper understanding of their transit ion comm itments and the strategies they have in place to achieve them • drive stronger credit related decis ions on exposures primar ily in high transit ion r isk sectors (exposure management, credit rating impact) • ident ify opportun it ies to support cl ients in their decarbonisat ion journey through adv isory and/or ﬁnancing serv ices • request further informat ion from cl ients on Physical Risk adaptation measures employed where Physical Risk is deemed to be high • decide on relationsh ip strateg ies where appropriate. E. Credib il ity of Transit ion Plans (CTPs) We aim to actively manage our exposure by working closely with our exist ing cl ients to develop credible transit ion plans that are consistent with our net zero commitments. We also look for opportunit ies to support lower em iss ions- intens ive clients. We leverage the data captured in the CRQ and assign a credib il ity rating to the clients’ transit ion plan based on an in-house scoring methodology that draws on the UK Transit ion Plann ing Taskforce and Glasgow Financ ial All iance for Net Zero guidance. The current methodology will be period ically rev iewed as the level of client-level climate-related disclosure steps up across our footprint to ensure it remains ﬁt for purpose and in line with industry best practices, stakeholder expectations and regulatory requirements. The CTP has been embedded into the Version 3 CRQ that was implemented in early 2024. 5. Controls and assurance Independent control checks by the ﬁrst line of defence and assurance reviews by the second line of defence on integrat ing Cl imate Risk with in the cred it process are carried out quarterly to improve the quality and effectiveness of assessing Climate Risk. The results of the assurance testing and steps to address gaps are period ically shared w ith impacted stakeholders and as part of governance updates to risk committees. Environmental, Social and Governance and Reputational (ESGR) Risk We perform addit ional cl ient-level due dil igence for ( i) corporate clients covered by the Group’s net zero targets for high-carbon sectors (Oil and Gas, Power, Steel, Alumin ium, Cement, Automobiles, Shipp ing, Av iat ion, CRE and Agriculture); (i i) cl ients with a coal nexus 1 ; and (i i i) those that have been assessed at a client-level as high Climate Risk. The assessment focuses on three pillars covering both client and transaction-level aspects: 2 As deﬁned by the Group’s Posit ion Statement to only prov ide and phase out exist ing ﬁnancial serv ices to clients who by 2030, are less than 5 per cent dependent on thermal coal (based on percentage revenue). Addit ionally, any client that uses thermal coal for captive purposes to support the manufacturing process in industr ies such as Alum in ium, Cement and Steel where there is no economically viable alternative. Client Level Transaction Level Temperature Alignment Temperature Alignment and Comparison to client peers Credib il ity of Transit ion Plan Readiness and Robustness of transit ion strategy from client risk assesments Net Zero Emiss ions Impact Inﬂuence on Net Zero alignment from both internal and regional context 1 As deﬁned by the Group’s Posit ion Statement to only prov ide and phase out exist ing ﬁnancial serv ices to clients who by 2030, are less than 5 per cent dependent on thermal coal (based on percentage revenue). Addit ionally, any client that uses thermal coal for captive purposes to support the manufacturing process in industr ies such as Alum in ium, Cement and Steel where there is no economically viable alternative. The above-mentioned due dil igence supplements our ex ist ing Environmental and Social (E&S) risk management processes as well as our oversight against our Posit ion Statements and Prohib ited Act iv it ies list. Reviews are conducted at a client- level to ident ify root causes, where spec if ic cr iter ia in Posit ion Statements are not fully met or there are ind iv idual clients that do not comply with the enhanced E&S criter ia, and propose mit igat ion plans. Such reviews may involve client engagement and seek commitment from clients to take corrective actions. In case of non-compliance with the above-mentioned criter ia, such cl ients are escalated to the Group Responsib il ity and Reputational Risk Committee, where transactions and clients can be rejected. The Group has commenced an exercise to consolidate Reputational, E&S and CRAs into a single ESGR Risk assessment, which we aim to roll out in phases over 2025. This assessment will bring together multiple sustainab il ity-related risk themes and improve interl inkages between r isk types, as well as integrate a client’s degree of alignment against the Group’s net zero commitments into the outcome. As a result, client reviews of ESGR-related risks will be undertaken to produce a more cohesive client sustainab il ity assessment. The Group has governance frameworks and standards for Sustainable Finance (SF) attributes which set out the requirements and responsib il it ies for manag ing greenwashing risks through the ongoing monitor ing of susta inable ﬁnance products, transactions, and clients throughout their lifecycle, from labelling to disclosures. The Green and Sustainable Product Framework, Sustainab il ity Bond Framework and Transit ion F inance Framework outline how we apply the ‘green’, ‘sustainable’ or ‘transit ion’ labels across products and transactions. In addit ion, the E&S R isk Management Framework sets out a series of Posit ion Statements, wh ich serve as our E&S guardrails when assessing in-scope SF transactions and pureplay clients. 264 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle All SF products are approved by the Sustainable Finance Governance Committee prior to roll out. All SF-labelled transactions are approved by SF-empowered approvers or the Transit ion F inance Labelling Sub-Committee on a transaction-by-transaction basis. An assessment toolkit has been developed to standardise the Group’s assessment of SF attributes for SF transactions. The Group has built a dig it ised solution to enable approved SF condit ions to be mon itored and tracked in a timely manner. To prevent overconcentration of SF liab il ity products, daily monitor ing through an automated dashboard has also been established. We have enhanced these standards and controls to incorporate requirements from emerging regulatory obligat ions, such as the Financ ial Conduct Author ity’s (FCA) anti-greenwashing rule, and to address the market integr ity and greenwash ing concerns from regulators around the sustainab il ity-linked loan market. The Group has developed internal guidel ines for manag ing the potential risk of greenwashing in our marketing and advertis ing, includ ing requ irements for the review and approval of sustainab il ity-related marketing campaigns and communicat ions. These requ irements have been set out in the governance standards for segment campaigns, corporate communicat ions, and brand management. Country Risk The Group uses a set of Physical and Transit ion R isk rankings to ident ify the markets most vulnerable and least ready to adapt and mit igate cl imate-related Physical and Transit ion R isks. Based on the aggregated Physical and Transit ion R isk scores, sovereigns are split into decile-based buckets ranging from 1 (low risk) to 10 (high risk). These rankings are used as qualitat ive and quant itat ive inputs to our internal Country Risk management process spanning annual sovereign credit grades and lim its rev iews, inputs to climate-related scenario analysis, and Risk Appetite. GCR exposure distr ibut ion across the Physical Risk categories (as at 30 September 2024) Bucket 1 (Best) 2 3 4 5 6 7 8 9 10 (Worst) Exposures % 11.06% 28.81% 18.25% 5.36% 17.67% 8.69% 1.80% 6.73% 0.67% 0.96% GCR exposure distr ibut ion across the Transit ion R isk categories (as at 30 September 2024) Bucket 1 (Best) 2 3 4 5 6 7 8 9 10 (Worst) Exposures % 3.19% 14.66% 11.21% 35.43% 18.05% 4.81% 3.93% 7.72% 0.86% 0.14% Insights • For both Physical and Transit ion R isk, our exposure to high-risk countries (buckets 9 and 10) remains well below Risk Appetite thresholds. • The rankings are largely driven by the level of ﬁnanc ial risk countries are exposed to and their abil ity to absorb these losses. As such, the rankings are largely dependent on countries’ development stage, economy-wide divers iﬁcation, in-country inequal it ies and gross exposure to Transit ion and Phys ical Risk shocks. • Addit ionally, we keep close track of Trans it ion R isk events, such as the establishment of the EU’s and UK’s Carbon Border Adjustment Mechanism (CBAM) and its potential impact on our key portfolios. Other markets with carbon pric ing mechan isms (such as Singapore, South Korea, South Africa,) are also being monitored as part of Country Risk annual reviews. From a Physical Risk standpoint, the Group continues to monitor extreme weather events in key footprint markets as part of our annual Country Risk reviews. Lim itat ions • The computation inputs are based on latest available data which may be dated. Proxies have been used where data for the sovereign is not available. • The ranking uses equally spaced decile scores and provides the results in an ordinal manner. While the simpl ic ity helps in adoption and provides the relative posit ion of the sovereigns, other systems may provide more informat ion. Operational, Technology and Cyber Risk Climate Risk primar ily man ifests as an operational, technology and cyber risk when Physical Risk disrupts our properties, data centres and vendor arrangements. We assess the physical risk vulnerabil it ies of our exist ing s ites on a regular basis and for new sites during the onboarding process. Going forward, we will be ranking sites that are most susceptible to physical risks to make these sites more resil ient by exploring infrastructure improvements, where possible. Furthermore, we have enhanced our systems to gather relevant data of our key vendors’ delivery locations to assess the Physical Risk to their facil it ies to ensure business continu ity. We have also evaluated the Transit ion R isk to achieve net zero in our own operations. The Group relies mainly on Renewable Energy Certif icates (RECs) to abate its Scope 2 emiss ions, given our footprint in less regulated markets where access to renewable energy is often lim ited or would requ ire sign iﬁcant capital investments. Long-term contracts, such as Purchase Power Agreements, which have more price stabil ity compared to RECs, are being explored, with continued focus on retroﬁtting propert ies for improv ing energy efﬁciency where possible. In terms of non-ﬁnancial ESGR r isk management, on-site audits are undertaken for certain vendors assessed to pose high modern slavery risk and adverse media screening enhancements were implemented to cover key phrases and to include modern slavery and human rights. Assessment of gross Physical Risk at our own operating locations (as of September 2024) Physical Risk event Time horizon Scenario Asia – GCNA Asia – ASEAN & South Asia AME E&A Global Flood (Acute) 2024 N/A 16% 16% 6% 6% 13% Wildf ire (Acute) 0% 0% 0% 0% 0% Storm (Acute) 26% 8% 0% 6% 14% Sea-level rise (Chronic) 2100 RCP 8.5 1% 1% 5% 0% 2% Heat Stress (Chronic) 2050 RCP 8.5 0% 56% 37% 0% 26% Number of operating locations 390 293 217 31 931 265 Standard Chartered – Annual Report 2024 Risk review and Capital review Insights • From an acute risk perspective, 13 per cent of the Group’s locations globally are subjected to extreme ﬂood risk, 14 per cent with extreme storm risk and none at extreme risk from wildf ire. G iven our footprint, a higher proportion of the Group’s locations in GCNA (16 per cent for ﬂood; 26 per cent for storm) and ASEAN and South Asia (16 per cent for ﬂood; 8 per cent for storm) are subjected to extreme acute risks and 6 per cent of locations in Europe and Americas, are subjected to ﬂood risks. • In the locations where weather events such as storms or cyclones are frequent, the build ings are bu ilt in considerat ion of these r isks to local build ing standards. • From a chronic risk perspective, under RCP 8.5, our exposure to heat stress is at 26 per cent (37 per cent for AME; 56 per cent for ASEAN and South Asia). Exposure to sea-level rise remains below 5 per cent. • A broad range of mit igat ion options are considered, such as property insurance and operating a divers iﬁed locat ion strategy to reduce concentration risk. Traded Risk We manage the Climate Risk of Traded Risk exposures through the stress-testing framework. Climate risks are incorporated in the scenarios monitored against the Traded Risk stress Risk Appetite, covering all fair value exposures in the trading and banking books. Climate-related stress scenarios are designed to include transit ion r isk effects from climate change polic ies and shocks to markets due to supply and demand disrupt ion from physical climate events. Three scenarios are currently in place: two physical and one transit ional. The assumpt ions and results are subject to internal governance. In 2024, a new transit ion scenar io, where the US unexpectedly partic ipates in the CBAM, was approved and will replace the current transit ion scenar io in 2025. The introduct ion of th is scenario will enable us to have a single transit ion scenar io applied across the Group. We continue to address gaps related to market risk factors and shorter-term shocks. Our Climate Risk management for Traded Risk exposures is evolving and we are working closely with industry bodies and academics to better assess and monitor climate-related risks and opportunit ies. Treasury Risk From a capital perspective, climate risk considerat ions have been part of our ICAAP submiss ions s ince 2019. Our approach for assessing climate risk impact on capital adequacy has improved from qualitat ive judgements to quant itat ive simulat ions across a range of scenar ios with the availab il ity of tools and greater understanding of our portfolio. We consider climate risk in our ICAAP across Credit Risk, Operational, Technology and Cyber Risk and Traded Risk. As understanding of climate risk management and potential forward-looking scenarios develop, our approach and assessment will continue to evolve. From a liqu id ity risk perspective, we expanded coverage of the top corporate client liqu id ity portfolio and continue to monitor for Climate Risk-related vulnerabil it ies and readiness, leveraging the client outreach and data-gathering exercise undertaken on the asset side. The most recent exposure concentration in the Red Climate Risk rating is broadly comparable with what we see for our top corporate client exposures on the asset side. Liqu id ity providers graded Red Climate Risk rating are from Transportation and Storage sectors. The results of the analysis have been considered as part of our Internal Liqu id ity Adequacy Assessment Process. Model Risk Since 2022 we have been build ing our internal Climate Risk modelling capabil it ies to assess impacts from Climate Risk, through collaboration with various external vendors. The development of internal Climate Risk models has reduced our reliance on external vendor models, and we will continue to enhance our internal capabil it ies by extending model coverage (e.g. to develop models to cover more portfolios, or to develop more granular sector-specif ic models) and incorporating model enhancements recommended by internal and external stakeholders. All the models developed are independently validated by the second line of defence and approved by the Credit Model Assessment Committee. The models were used to estimate climate impact on Expected Credit Loss (ECL) for IFRS 9 and stress testing usages. In 2024 we developed two more sector-specif ic transit ion r isk probabil ity of default (PD) models for Automotive and Shipp ing. We also enhanced the corporate transit ion r isk PD models to include improved granularity for the Oil and Gas model which better captures sector-specif ic risk drivers, changing from a constant to a dynamic interest expense projection and includ ing more accurate cap ital expenditure calculations. The sovereign climate PD model has also been enhanced by adding material sovereigns, Hong Kong and Singapore, in model calibrat ion. Key prior it ies for 2025 include expanding model coverage to capture Physical Risk in PD (for corporates) and loss given default (for corporates and retail mortgages) and Transit ion Risk for special ised lend ing scorecards (Project ﬁnance and Shipp ing ﬁnance). Apart from models that are used to estimate ECL, we have developed temperature alignment models that are forward- looking and assess impl ied temperature r ise scores for corporate counterparties. The output from temperature alignment models supports internal climate risk management processes with in the Group. Assessing the resil ience of our strategy us ing scenario analysis To assess climate-related risks and opportunit ies in the short, medium and long-term we use scenario analysis to consider how risks and opportunit ies may evolve under d ifferent situat ions. We have cont inued to further strengthen our scenario analysis capabil it ies by moving towards internal models and developing our infrastructure and capabil it ies to incorporate Climate Risk into data, modelling, and analysis. We have partic ipated in several regulatory climate stress tests in 2024, includ ing the Hong Kong Monetary Author ity (HKMA) climate stress test which was based on three long-tenor and one short-tenor scenarios. We are also partic ipat ing in the Monetary Authority of Singapore’s (MAS), Bank Negara Malaysia’s (BNM) and Otoritas Jasa Keuangan’s (OJK) climate stress tests. Results are expected to be submitted in 2025. 266 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle Scenarios used by the Group The table below summarises the climate risk scenarios used internally by the Group across risk types for scenario analysis, and Group ICAAP assessments. Risk types Scenario family Number of scenarios Risk measure/usecCase Refer page no Credit Risk – CIB Network for Greening the Financ ial System Version 3 (NFGS v3) Bespoke Tail and Base 6 Stressed ECL 267 Credit Risk – WRB NGFS v3 Bespoke Tail and Base 6 Stressed ECL, Stranded Assets estimate 268 Operational, Technology and Cyber Risk Intergovernmental Panel on Climate Change’s (IPCC) RCP scenarios 2 Physical Risk concentration for sea-level rise risk 264 Traded Risk Bespoke (two Physical scenarios and one Transit ion scenar io) 3 Stressed Loss 265 Transit ion (T) and Phys ical (P) Risk scenarios We adapted the following scenarios for our CIB and WRB businesses: Scenario family Scenario name Key features NGFS Phase 3 Net Zero 2050 (T) Global warming lim ited to 1.5°C through str ingent climate polic ies and innovat ion Global net zero CO 2 emiss ions around 2050 Delayed Transit ion (T) Strong polic ies w ill be needed to lim it warm ing to below 2°C Annual emiss ions do not decrease unt il 2030 Current Polic ies (P+T) No addit ional pol ic ies beyond those currently implemented, along with slow technology change Global temperature rises over 3°C by 2100 Bespoke In-house Base Case (P+T) Credib il ity assessment of countries’ current sector targets in the short to medium-term (2030) and a durabil ity assessment of reduct ion commitments in the long-term (2050) Delayed transit ion to a low-carbon economy and a lack of early cl imate action resulting in a 2.5°C temperature rise by 2100 Green Trade War Tail (T) Impact to global trade due to introduct ion of the CBAM lead ing to trade war escalation Explores risks which are not addressed by the NGFS scenarios and may emerge over a short to medium-term horizon Migrat ion Ta il (P) Increasing severe acute weather events globally impact global food prices and drive migrat ion and d isplacement IPCC (2050, 2100) RCP 2.6 (P) RCP 4.5 (P) RCP 8.5 (P) Pathways of greenhouse gas emiss ions and atmospher ic concentrations, air pollutant emiss ions and land use to project the ir consequences for the climate system Current and projected hazard scores across a range of hazards such as tropical cyclones, river ﬂood, sea-level rise, heat stress, precip itat ion stress, wildf ire, and drought stress from Munich Re model are used The scenarios used for CIB clients are characterised by different levels of transit ion and phys ical risk, driven by various features in each scenario. Carbon price: increase in carbon price puts addit ional cost pressure on clients, squeezes the proﬁt margin, and thus helps to determine level of potential credit losses. Oil price: increase (or lack thereof) in oil price impacts on clients’ revenues and proﬁtab il ity, and thus helps to determine level of potential credit losses. Features of the NGFS and Bespoke scenarios used in a Group scenario analysis Key Variables Year NGFS v3 Bespoke scenarios Net Zero 2050 Delayed Transit ion Current Polic ies Migrat ion Tail Physical Risk Green Trade War Tail Transit ion Risk Temperature rise 2050 1.4°C 1.6°C 3°C+ NA NA Carbon price 2030 124 6 6 61 66 ($2015/tCO 2 ) 2050 487 416 7 70 90 Oil price 2030 84 94 94 51 50 (US$2015/boe) 2050 107 118 125 41 41 Gas price change (vs 2020, %) 2030 56% 43% 43% 15% 15% 2050 52% 54% 80% -14% -14% Power demand change (vs 2020, %) 2030 27% 35% 35% 20% 20% 2050 120% 129% 106% 75% 75% GDP baseline change (vs 2020, %) 2030 34% 36% 36% -4% -5% 2050 111% 110% 118% -2% -5% 267 Standard Chartered – Annual Report 2024 Risk review and Capital review Scenario analysis results for CIB We assessed the impact of climate-related risks on our corporate, sovereign, and ﬁnanc ial inst itut ion clients covering 94 per cent of CIB exposures. This assessment, across the NGFS and Bespoke scenarios, for these clients is primar ily reﬂective of the gross transit ion r isks, and lim ited impact from physical risks. While client-level transit ion plans were not factored into the modelling, they were referenced to draw addit ional ins ights for pr ior ity sectors. We used the ﬁrst-generation internally developed transit ion risk models for NGFS scenarios in 2024, which was the ﬁrst step in our journey to transit ion from our rel iance on vendor models to in-house capabil it ies. The cumulative Loan Impairment (LI) Intensity measures the level of incremental ECL against the exposure at default (EAD). This metric enables us to assess the relative size of our exposure subject to potential losses from climate risks. As the graph below illustrates, cumulative LI intens it ies do not go beyond three per cent during the forecast horizon for the climate scenarios considered in our scenario analysis. We expect the LI intens ity to r ise the most in the Green Trade War scenario (Bespoke Tail Transit ion R isk) and the Migrat ion Tail scenario (Bespoke Tail Physical Risk), followed by the Delayed Transit ion and Net Zero 2050 scenar ios, primar ily driven by corporates. The Green Trade War Tail Transit ion R isk scenario shows the highest LI intens ity, reﬂect ing the potential risks to the global economy and subsequent increase in credit losses that may manifest due to the climate subsidy competit ion and introduct ion of CBAM. The h igh LI intens ity in the Migrat ion Tail Physical Risk scenario is due to typhoons in the east Asian economic hubs along with ﬂoods in India and Pakistan leading to mass migrat ion and drop in world GDP. The high LI intens ity in the Delayed Transit ion scenar io depicts that delayed transit ion w ill be disrupt ive due to a lower level of innovat ion that l im its the ab il ity to decarbon ise effectively, and ris ing carbon pr ices that squeeze proﬁt margins. The high LI intens ity in the Net Zero 2050 scenario is reﬂective of the high transit ion r isks noted by higher carbon prices, coupled with the need for greater investment to move to a low-carbon economy. Relatively lower LI intens ity observed in the NGFS Current Polic ies scenar io reﬂects the nascent modelling capabil it ies on assessing the physical risk impact to client asset locations and second-order impacts, such as that on the supply chain. Overall, we believe that the level of potential credit losses can be mit igated by cont inu ing to take act ions, which the Group is already doing across sectors as part of its net zero roadmap, engaging with our clients on this topic and supporting clients on their transit ion journey. See page 74 for more informat ion on the Group’s transit ion plan 2050 2045 2040 2035 2030 2025 2023 Loan Impairment Intensity for the Corporate Portfolio 0% 1.5% 1.0% 0.5% 2.0% 2.5% 2.7% to 0.7% 3.0% Current polic ies SCB in-house Delayed transit ion Tail Physical Net Zero 2050 Tail Transit ion Loan Impairment (LI) Intensity is calculated as gross expected credit losses (ECL) over exposure at default (EAD) For corporate clients, we focused on the sectors in the table below that have been ident iﬁed as more vulnerable to potent ial climate impacts. As of December 2023, these sectors represented circa 48 per cent of our corporate portfolio. Under the NGFS scenarios assessed, sectors such as Oil and Gas, Util it ies, and Automobiles and Components are most impacted, primar ily due to the r ise in carbon prices in the scenarios and to some extent by the consequent macroeconomic changes. For the internal scenarios, GDP crashes and second-order risks impact corporate clients across Oil and Gas, Util it ies, Transportation and Construction sectors. The change in LI intens it ies compared with previous disclosures is due to a combinat ion of factors includ ing adopt ion of in-house models for NGFS scenarios and changes in portfolio mix, amongst others. 268 Standard Chartered – Annual Report 2024 Risk review Risk proﬁle Loan Impairment intens it ies for key corporate sectors for the NGFS and Bespoke scenarios Long Term – 2050 EAD Y0 (%) NGFS v3 Net Zero 2050 NGFS v3 Delayed Transit ion NGFS v3 Current polic ies Bespoke Baseline Bespoke Tail Transit ion R isk Bespoke Tail Physical Risk Automobiles & Components 3% Medium Medium Medium Low Medium Medium Build ing Products, Construct ion & Engineer ing 5% Medium Medium Low Medium Medium Medium Consumer Durables & Apparel 5% Low Low Low Low Medium Medium CRE 9% Medium Medium Low Low Medium Medium Metals & Min ing 4% Low Low Low Low Low Low Oil & Gas 8% High High Medium Medium High Medium Telecommunicat ion Serv ices 1% Low Low Low Low Medium Low Transportation & Storage 8% Low Low Low Medium High Medium Util it ies 4% High High High Medium Medium Medium Total portfolio 100% Medium Medium Low Low Medium Medium Exposure at Default (EAD) data is as of December 2023 The results are used to assess the impact of climate change on our portfolio and provide management informat ion to monitor stressed LI over the next ﬁve-year horizon under plausible and extreme climate scenarios. The results also form part of our CRAs. While further enhancements to our modelling and risk assessment capabil it ies are ongoing, the results of scenario analysis have provided further validat ion to the actions the Group is taking in terms of our net zero ambit ions and strategy. Add it ionally, it aligns with our management in it iat ives a imed at improv ing the data qual ity and build ing in-house modelling expertise. The results have been subject to internal governance, includ ing rev iew and challenge by an expert panel and discuss ion at the CRMC and BRC. Scenario analysis results for WRB WRB scenario analysis capabil it ies in 2024 considered the changes in portfolio mix, use of NGFS scenarios, Bespoke Base Case and short to medium-term tail risk scenarios and incorporating a more analytical and data-driven approach to management adjustments. The impact of climate risk is captured through macroeconomic variables that are inﬂuenced under a range of climate condit ions and by incorporating the following addit ional cons iderat ions: • For our key resident ial mortgage markets, we reassess property valuations under different climate scenarios using the forward-looking risk ind ices from Mun ich Re. These revaluations are then used to inform haircuts on the property prices and arrive at climate-adjusted ECL. • The impact of elevated energy bills was taken into considerat ion for the cred it card portfolio to address the transit ion r isks for key markets. • Stranded assets analysis was conducted for resident ial mortgages to account for the extreme physical risks under the NGFS Current Polic ies and M igrat ion Ta il Physical Risk scenarios. We deﬁne stranded assets as properties that are expected to become uninhab itable and/or unusable due to increased frequency and intens ity of phys ical risk events from acute and chronic risks. These stranded assets are expected to see a complete erosion to the value of the property. Insurance beneﬁts were not considered beyond 2030 to build a conservative estimate, given the potential issues around affordabil ity and ava ilab il ity of insurance for such stranded assets in the longer term. The following chart illustrates the stranded asset losses for 2050 across key resident ial mortgage markets under the RCP 8.5 scenario based on Munich Re’s Risk Suite (Natural Hazards Edit ion). We exam ined exposure concentration in key markets subject to the extreme risk of ﬂoods and storms to assess the acute physical risk, and sea-level rise to assess the chronic physical risk. This analysis also considered addit ional deta ils, such as age and type of the property and in-built ﬂood defence mechanism for the acute risk and distance to coast for the chronic risk, subject to data availab il ity. Markets such as Korea, India, Malaysia, China, and Bangladesh exhib it a h igher level of potential losses as more properties in these markets will be exposed to ﬂood and storm risks by the year 2050. While properties in UAE exhib it a h igher level of sea-level rise risk by the year 2050. It is important to note that while the management adjustments related to stranded assets and higher energy bills are data-driven, they also involve an element of judgement, and represent gross physical risk measures as they do not consider the level of adaptation measures enforced by government polic ies. We w ill continue to reﬁne the approach to ensure its effectiveness. These results have been subject to internal governance, includ ing rev iew and challenge by an expert panel and discuss ion at the CRMC and BRC, and are shared with the ﬁrst line of defence and the second line of defence for portfolio monitor ing and to guide risk management strategies. Our peak LI intens it ies for 2050 across the range of climate scenarios, after incorporating stranded asset overlay, do not exceed 3.1 per cent relative to the counterfactual base scenario without climate impacts. Insurance polic ies currently mandated in the key markets such as Hong Kong, China and UAE cover the damages that may be caused by ﬂood and storm in the short to medium-term. In Korea, where the homeowners’ insurance coverage does not fully mit igate residual physical risks, we have established zoning polic ies to ringfence against properties subject to high physical risk. These measures will help to ensure that the Group remains resil ient to the adverse cl imate condit ions. We also cont inue to actively manage the mortgage portfolio to mit igate physical risks build-up. 269 Standard Chartered – Annual Report 2024 Risk review and Capital review The size of the bubble is ind icat ive of the gross stranded asset losses assessed for all of the resident ial mortgage book Expected losses due to stranded assets for retail mortgages by 2050 (December 2023 snapshot) High risk Medium risk Low risk High risk Low risk Medium risk Chronic Risk (Sea Level Rise) Acute Risk (Flood and Storm) Hong Kong Korea China India UAE Taiwan Singapore Malaysia Bangladesh Recent events in countries like Bangladesh, China, and the UAE have highl ighted the increas ing frequency, intens ity, and unexpected nature of natural disasters. In Bangladesh, heavy monsoon rains have led to sign iﬁcant ﬂood ing, displac ing thousands of people, and caus ing extensive damage to infrastructure and agriculture. Sim ilarly, in China, ﬂoods from heavy rainfall began in Guangdong Province and spread northward, rais ing water levels in the Yangtze River and the Pearl River Delta, and resulted in sign iﬁcant ﬂood damage and economic loss. While the UAE is typically known for its arid climate, recent storms have brought unexpected rainfall, leading to localised ﬂooding and disrupt ion. These events serve as a rem inder of the vulnerabil it ies due to climate change. Despite recent challenges, the Group has exhib ited sign iﬁcant res il ience, attr ibutable to its robust balance sheet and risk management practices. Lim itat ions and next steps Reliance on nascent methodologies, dependencies on ﬁrst-generation models and data lim itat ions are some challenges that underpin the scenario analysis. Many of these lim itat ions are shared across the industry. Given the complexit ies of cl imate modelling, it should also be noted that the results do not include the real-world aspects, such as the non-linear shifts and complex feedback loops. As more solution providers become available and banks start to use them extensively to build internal understanding and capabil it ies, the transparency and sophist icat ion of modelling methodologies and assumptions will increase. Nonetheless, the current results provide a strategic direct ion of the sense of portfolio concentrations subject to potential climate losses. These results are used to inform portfolio oversight and opportunity ident iﬁcation w ith clients on their transit ion and adaptat ion pathways. Addit ionally, cons iderable developments have been made in build ing capab il ity from a people, process, and technology perspective to support stress tests and scenario analysis at both Group and country level. As we look ahead, integrat ing internal climate risk models with in the Group’s infrastructure will be a key prior ity for the upcom ing years. The development of a management actions playbook to incorporate the elements of climate risk is under way. Qualitat ive rev iew of climate risks and opportunit ies in annual business strategy and ﬁnancial plann ing In 2024, Climate Risk was considered as part of our formal annual corporate strategy and ﬁnancial plann ing process. We use both qualitat ive and quant itat ive aspects focus ing on revenue reliance from clients in high-emitt ing sectors and/or locations most exposed to physical risk, consider ing the adequacy of mit igat ion plans. The results are then independently reviewed by regional and client-segment Chief Risk Ofﬁcers and the ESGR Risk team. The Board considers the impact of climate risk as part of their approval of the corporate plan. The 2025 corporate plan includes an increase in LI due to the impact from Climate Risk. A revenue at risk sensit iv ity analysis to the corporate plan was performed over the ﬁve-year period assuming lim ited trans it ion, i.e., no client transit ion plans and no cl ient engagement. This was considered as a potential downside risk to the corporate plan only, given the prudent scenario. In most cases, the Physical and Transit ion r isks ident iﬁed were assessed to be well controlled in the short to medium-term. We are inst itut ing controls around both new and exist ing clients with the aim to align those client carbon emiss ion intens it ies and ambit ions to be commensurate w ith the Group’s portfolios, or there are plans in place to work with the client on their transit ion journey. Th is alignment, done at a portfolio level, and done through balancing exist ing bus iness with sustainable and transit ion ﬁnance products to cl ients in high-emitt ing sectors to help decarbon ise their business models. Further our growth ambit ion includes sectors with lower carbon intens ity or em iss ions such as clean and transit ion technology. Our Susta inable and Transit ion Finance product suite and our dedicated Sustainable Finance, Transit ion Accelerat ion and ESG advisory teams aim to mit igate trans it ion r isks in the short to medium-term, strengthening our resil ience towards a 2°C or lower trans it ion scenario. However, longer-term transit ion r isks were highl ighted, part icularly for Africa and the Middle East region, given its dependency on fossil fuels; and longer-term physical risks were deemed to be most relevant for the Asia region. Capital review The Capital review provides an analysis of the Group’s capital and leverage posit ion, and requirements. Capital summary The Group’s capital, leverage and min imum requ irements for own funds and elig ible l iab il it ies (MREL) pos it ion is managed with in the Board-approved r isk appetite. The Group is well capital ised w ith low leverage and high levels of loss-absorbing capacity. 2024 2023 CET1 capital 14.2% 14.1% Tier 1 capital 16.9% 16.3% Total capital 21.5% 21.2% Leverage ratio 4.8% 4.7% MREL ratio 34.2% 33.3% Risk-weighted assets (RWA) $mill ion 247,065 244,151 The Group‘s capital, leverage and MREL posit ions were all above current requirements and Board-approved risk appetite. For further detail see the Capital section in the Standard Chartered PLC Pillar 3 Disclosures for FY 2024. The Group’s CET1 capital increased 19 basis points to 14.2 per cent of RWA since FY2023. Proﬁts, movements in FVOCI, FX translation reserves and decrease in regulatory deductions were partly offset by RWA growth and distr ibut ions (includ ing ord inary share buybacks of $2.5 bill ion dur ing the year). The PRA updated the Group’s Pillar 2A requirement during Q4 2024. As at 31 December 2024 the Group’s Pillar 2A was 3.7 per cent of RWA, of which at least 2.1 per cent must be held in CET1 capital. The Group’s min imum CET1 cap ital requirement was 10.5 per cent at 31 December 2024. The Group CET1 capital ratio at 31 December 2024 reﬂects the share buybacks of $2.5 bill ion announced dur ing the year. The CET1 capital ratio also includes an accrual for the FY 2024 div idend. The Board has recommended a ﬁnal d iv idend for FY 2024 of $679 mill ion or 28 cents per share result ing in a full year 2024 div idend of 37 cents per share, a 37 per cent increase on the 2023 div idend. In add it ion, the Board has announced a further share buyback of $1.5 bill ion, the impact of this will reduce the Group’s CET1 capital by around 61 basis points in the ﬁrst quarter of 2025. The Group expects to manage CET1 capital dynamically with in our 13-14 per cent target range, in support of our aim of deliver ing future susta inable shareholder distr ibut ions. The Group’s MREL leverage requirement as at 31 December 2024 was 27.6 per cent of RWA. This is composed of a min imum requ irement of 23.7 per cent of RWA and the Group’s combined buffer (compris ing the cap ital conservation buffer, the G-SII buffer and the countercyclical buffer). The Group’s MREL ratio was 34.2 per cent of RWA and 9.7 per cent of leverage exposure at 31 December 2024. During 2024, the Group successfully raised $9.1 bill ion of MREL elig ible secur it ies from its holding company, Standard Chartered PLC. Issuance include $1.6 bill ion of Add it ional T ier 1 and $7.5 bill ion of callable sen ior debt. The Group raised an addit ional $1.0 b ill ion of Add it ional T ier 1 and $2.5 bill ion in senior securit ies post the balance sheet date, i.e. not included in the FY 2024 MREL posit ion. The Group is a G-SII, with a 1.0 per cent G-SII CET1 capital buffer. The Standard Chartered PLC G-SII disclosure is published at: sc.com/en/investors/ﬁnanc ial-results. 270 Standard Chartered – Annual Report 2024 Capital review Risk review and Capital review Standard Chartered – Annual Report 2024 271 Capital base 1 (audited) 2024 2023 $mill ion $mill ion CET1 capital instruments and reserves Capital instruments and the related share premium accounts 5,201 5,321 Of which: share premium accounts 3,989 3,989 Retained earnings 24,950 24,930 Accumulated other comprehensive income (and other reserves) 8,724 9,171 Non-controlling interests (amount allowed in consolidated CET1) 235 217 Independently audited year-end proﬁts 4,072 3,542 Foreseeable div idends (923) (768) CET1 capital before regulatory adjustments 42,259 42,413 CET1 regulatory adjustments Addit ional value adjustments (prudent ial valuation adjustments) (624) (730) Intangible assets (net of related tax liab il ity) (5,696) (6,128) Deferred tax assets that rely on future proﬁtabil ity (excludes those aris ing from temporary d ifferences) (31) (41) Fair value reserves related to net losses on cash ﬂow hedges (4) (91) Deduction of amounts resulting from the calculation of excess expected loss (702) (754) Net gains on liab il it ies at fa ir value resulting from changes in own credit risk 278 (100) Deﬁned-beneﬁt pension fund assets (149) (95) Fair value gains aris ing from the inst itut ion’s own credit risk related to derivat ive l iab il it ies (97) (116) Exposure amounts which could qualify for risk weight ing of 1250% (44) (44) Total regulatory adjustments to CET1 (7,069) (8,099) CET1 capital 35,190 34,314 Addit ional T ier 1 capital (AT1) instruments 6,502 5,512 AT1 regulatory adjustments (20) (20) Tier 1 capital 41,672 39,806 Tier 2 capital instruments 11,449 11,965 Tier 2 regulatory adjustments (30) (30) Tier 2 capital 11,419 11,935 Total capital 53,091 51,741 Total risk-weighted assets (unaudited) 247,065 244,151 1 Capital base is prepared on the regulatory scope of consolidat ion 272 Standard Chartered – Annual Report 2024 Capital review Movement in total capital (audited) 2024 2023 $mill ion $mill ion CET1 at 1 January 34,314 34,157 Ordinary shares issued in the period and share premium – – Share buyback (2,500) (2,000) Proﬁt for the period 4,072 3,542 Foreseeable div idends deducted from CET1 (923) (768) Difference between div idends pa id and foreseeable div idends (469) (372) Movement in goodwill and other intang ible assets 432 (326) Foreign currency translation differences (525) (477) Non-controlling interests 18 28 Movement in elig ible other comprehens ive income 636 464 Deferred tax assets that rely on future proﬁtabil ity 10 35 Decrease/(increase) in excess expected loss 52 (70) Addit ional value adjustments (prudent ial valuation adjustment) 106 124 IFRS 9 transit ional impact on regulatory reserves includ ing day one 2 (106) Exposure amounts which could qualify for risk weight ing – 59 Fair value gains aris ing from the inst itut ion’s own Credit Risk related to derivat ive l iab il it ies 19 (26) Others (54) 50 CET1 at 31 December 35,190 34,314 AT1 at 1 January 5,492 6,484 Net issuances (redemptions) 1,015 (1,000) Foreign currency translation difference and others (25) 8 AT1 at 31 December 6,482 5,492 Tier 2 capital at 1 January 11,935 12,510 Regulatory amortisat ion 1,189 1,416 Net issuances (redemptions) (1,517) (2,160) Foreign currency translation difference (191) 146 Tier 2 inel ig ible minor ity interest (3) 19 Others 6 4 Tier 2 capital at 31 December 11,419 11,935 Total capital at 31 December 53,091 51,741 The main movements in capital in the period were: • CET1 capital increased by $0.9 bill ion as reta ined proﬁts of $4.1 bill ion, movement in FVOCI of $0.6 bill ion and a reduct ion in regulatory deductions and other movements of $0.6 bill ion were partly offset by share buybacks of $2.5 b ill ion, d istr ibut ions paid and foreseeable of $1.4 bill ion, fore ign currency translation impact of $0.5 bill ion. • AT1 capital increased by $1.0 bill ion follow ing the issuance of $1.0 bill ion of 7.88 per cent secur it ies and $0.6 b ill ion of 5.30 per cent securit ies partly offset by the redempt ion of $0.6 bill ion of 5.38 per cent secur it ies. • Tier 2 capital decreased by $0.5 bill ion due to the redempt ion of $1.6 bill ion of T ier 2 during the year partly offset by the reversal of regulatory amortisat ion and fore ign currency translation impact. Risk-weighted assets by business 2024 Credit risk Operational risk Market risk Total risk $mill ion $mill ion $mill ion $mill ion Corporate & Investment Banking 112,100 19,987 24,781 156,868 Wealth & Retail Banking 41,002 9,523 – 50,525 Ventures 2,243 142 21 2,406 Central & Other items 33,958 (173) 3,481 37,266 Total risk-weighted assets 189,303 29,479 28,283 247,065 2023 Corporate & Investment Banking 102,675 18,083 21,221 141,979 Wealth & Retail Banking 42,559 8,783 – 51,342 Ventures 1,885 35 3 1,923 Central & Other items 44,304 960 3,643 48,907 Total risk-weighted assets 191,423 27,861 24,867 244,151 Movement in risk-weighted assets Risk review and Capital review Standard Chartered – Annual Report 2024 273 Credit risk Corporate & Wealth & Investment Retail Central & Operational Banking Banking Ventures Other items Total risk Market risk Total risk $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion At 1 January 2023 110,103 42,091 1,350 43,311 196,855 27,177 20,679 244,711 Assets growth & mix (4,424) 728 535 1,183 (1,978) – – (1,978) Asset quality (391) 390 – 2,684 2,683 – – 2,683 Risk-weighted assets efﬁc ienc ies – – – (688) (688) – – (688) Model Updates (597) (151) – (151) (899) – 500 (399) Methodology and policy changes – (196) – – (196) – (800) (996) Acquis it ions and disposals (1,630) – – – (1,630) – – (1,630) Foreign currency translation (386) (303) – (2,035) (2,724) – – (2,724) Other, Including non-credit risk movements – – – – – 684 4,488 5,172 At 31 December 2023 102,675 42,559 1,885 44,304 191,423 27,861 24,867 244,151 Assets growth & mix 11,412 341 358 (5,803) 6,308 – – 6,308 Asset quality (1,349) 112 – (1,935) (3,172) – – (3,172) Risk-weighted assets efﬁc ienc ies – – – – – – – – Model Updates 1,620 (1) – – 1,619 – (400) 1,219 Methodology and policy changes 38 39 – – 77 – (1,300) (1,223) Acquis it ions and disposals – – – – – – – – Foreign currency translation (2,296) (1,207) – (1,374) (4,877) – – (4,877) Other, Including non-credit risk movements – (841) – (1,234) (2,075) 1,618 5,116 4,659 At 31 December 2024 112,100 41,002 2,243 33,958 189,303 29,479 28,283 247,065 Movements in risk-weighted assets RWA increased by $2.9 bill ion, or 1.2 per cent from 31 December 2023 to $247.1 bill ion. Th is was mainly due to decrease in Credit Risk RWA of $2.1 bill ion, an increase in Market Risk RWA of $3.4 bill ion and Operat ional Risk RWA of $1.6 bill ion. Corporate & Investment Banking Credit Risk RWA increased by $9.4 bill ion, or 9.2 per cent from 31 December 2023 to $112.1 bill ion ma inly due to: • $11.4 bill ion increase from changes in asset growth & mix, of which: – $9.0 bill ion increase from asset growth – $3.1 bill ion increase from derivat ives – $0.8 bill ion decrease from opt im isat ion actions • $1.6 bill ion increase from industry-wide regulatory changes to align IRB model performance from adjustment to commercial real estate counterparties • $2.3 bill ion decrease from fore ign currency translation • $1.3 bill ion decrease ma inly due to an improvement in asset quality reﬂecting client upgrades Wealth & Retail Banking Credit Risk RWA decreased by $1.6 bill ion, or 3.7 per cent from 31 December 2023 to $41.0 bill ion ma inly due to: • $1.2 bill ion decrease from fore ign currency translation • $0.8 bill ion decrease from reclass if icat ion of credit cards in Asia • $0.3 bill ion increase from changes in asset growth & mix • $0.1 bill ion increase mainly due to deteriorat ion in asset quality mainly in Asia Ventures Ventures is comprised of Mox Bank Lim ited, Trust Bank and SC Ventures. Credit Risk RWA increased by $0.4 bill ion, or 19 per cent from 31 December 2023 to $2.2 bill ion from asset balance growth, mainly from SC Ventures. Central & Other items Central & Other items RWA mainly relate to the Treasury Market’s liqu id ity portfolio, equity investments and current & deferred tax assets. Credit Risk RWA decreased by $10.3 bill ion, or 23.4 per cent from 31 December 2023 to $34.0 bill ion ma inly due to: • $5.8 bill ion decrease from changes in asset growth & mix primar ily from opt im isat ion activ it ies • $1.9 bill ion decrease due to improvement in asset quality mainly from sovereign upgrades in Asia and Africa • $1.4 bill ion decrease from fore ign currency translation • $1.2 bill ion decrease due to report ing enhancements Market Risk Total Market Risk RWA increased by $3.4 bill ion, or 13.7 per cent from 31 December 2023 to $28.3 bill ion primar ily dr iven by: • $1.7 bill ion increase in Standardised Approach (SA) Specif ic Interest Rate Risk RWA mainly due to increases in the Trading Book government bond portfolio • $2.7 bill ion increase in Internal Models Approach (IMA) RWA from increases in VaR and Stressed VaR RWA due mainly to increased interest rate exposures, offset by a reduction of addons for Risks not in VaR • $1.3 bill ion in the ﬁrst quarter decrease due to a reduction in the IMA RWA multipl ier result ing from fewer back- testing exceptions Operational Risk • Operational Risk RWA increased by $1.6 bill ion, or 5.8 per cent from 31 December 2023 to $29.5 bill ion, ma inly due to a marginal increase in average income as measured over a rolling three-year time horizon for certain products. 274 Standard Chartered – Annual Report 2024 Capital review Leverage ratio The Group’s leverage ratio, which excludes qualify ing cla ims on central banks, was 4.8 per cent at FY2024, which was above the current min imum requ irement of 3.7 per cent. The leverage ratio was 10 basis points higher than FY2023. Leverage exposure increased by $21.2 bill ion from decrease in claims on central banks of $15.5 bill ion, an increase in Derivat ives of $15.9 b ill ion, securit ies ﬁnancing transact ions of $1.2 bill ion, decrease in asset amounts deducted in determin ing T ier 1 capital (Leverage) of $0.6 bill ion, partly offset by decrease in Off-balance sheet items of $5.0 bill ion, Other Assets of $4.7 b ill ion, and secur it ies ﬁnancing transact ion add-on of $2.4 bill ion. T ier 1 capital increased by $1.9 bill ion as CET1 cap ital increased by $0.9 bill ion and AT1 capital increased by $1.0 bill ion follow ing the issuance of $1.6 bill ion partly offset by the redempt ion of $0.6 bill ion AT1 securit ies. Leverage ratio 31.12.24 31.12.23 $mill ion $mill ion Tier 1 capital (end point) 41,672 39,806 Derivat ive ﬁnancial instruments 81,472 50,434 Derivat ive cash collateral 11,046 10,337 Securit ies ﬁnancing transact ions (SFTs) 98,801 97,581 Loans and advances and other assets 658,369 664,492 Total on-balance sheet assets 849,688 822,844 Regulatory consolidat ion adjustments 1 (76,197) (92,709) Derivat ives adjustments Derivat ives nett ing (63,934) (39,031) Adjustments to cash collateral (10,169) (9,833) Net written credit protection 2,075 1,359 Potential future exposure on derivat ives 51,323 42,184 Total derivat ives adjustments (20,705) (5,321) Counterparty risk leverage exposure measure for SFTs 4,198 6,639 Off-balance sheet items 118,607 123,572 Regulatory deductions from Tier 1 capital (7,247) (7,883) Total exposure measure excluding claims on central banks 868,344 847,142 Leverage ratio excluding claims on central banks (%) 4.8% 4.7% Average leverage exposure measure excluding claims on central banks 894,296 853,968 Average leverage ratio excluding claims on central banks (%) 4.7% 4.6% Countercyclical leverage ratio buffer 0.1% 0.1% G-SII addit ional leverage rat io buffer 0.4% 0.4% 1 Includes adjustment for qualify ing central bank cla ims and unsettled regular way trades 275 Standard Chartered – Annual Report 2024 Financ ial statements 276 Independent Auditor’s report 287 Consolidated income statement 288 Consolidated statement of comprehensive income 289 Consolidated balance sheet 290 Consolidated statement of changes in equity 291 Cash ﬂow statement 292 Company balance sheet 293 Company statement of changes in equity 294 Notes to the ﬁnancial statements Financ ial statements Serving global UHNW entrepreneurial famil ies As a trusted partner to entrepreneurial famil ies for more than 170 years, we know that true success can take a lifet ime. Our Global Private Bank supports ultra-high-net- worth (UNHW) ind iv iduals and their famil ies w ith business, wealth and legacy aspirat ions. In October, we held our inaugural Global Family Network Forum in Hong Kong. The event, titled ‘Connecting famil ies, celebrat ing life’s work’, was attended by 200 internat ional cl ients, guests and their famil ies. Over a welcome gala d inner and full-day conference, we provided opportunit ies to learn from like-minded entrepreneurs and experts, and connect with the Bank’s management team and other UHNW famil ies. Read more at sc.com/private-banking 276 Standard Chartered – Annual Report 2024 Financ ial statements Independent auditor’s report Opin ion In our opin ion: • Standard Chartered plc’s group ﬁnancial statements and parent company ﬁnancial statements (the “ﬁnancial statements”) give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2024 and of the group’s proﬁt for the year then ended; • the group ﬁnancial statements have been properly prepared in accordance with UK-adopted International Accounting Standards (UK IAS) and International Financ ial Reporting Standards (IFRS) as adopted by the European Union (EU IFRS); • the parent company ﬁnancial statements have been properly prepared in accordance with UK IAS as applied in accordance with section 408 of the Companies Act 2006; and • the ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the ﬁnanc ial statements of Standard Chartered plc (the ‘Company’ or the ‘Parent Company’) and its subsid iar ies, interests in associates, and jo intly controlled entit ies (together w ith the Company—the ‘Group’) for the year ended 31 December 2024 which comprise: Group Company Consolidated income statement for the year ended 31 December 2024; Balance sheet as at 31 December 2024; Consolidated statement of comprehensive income for the year then ended; Cash ﬂow statement for the year then ended; Consolidated balance sheet as at 31 December 2024; Statement of changes in equity for the year then ended; and Consolidated statement of changes in equity for the year then ended; Related notes 1 to 40 to the ﬁnancial statements, includ ing: material accounting policy informat ion. Consolidated cash ﬂow statement for the year then ended; Related notes 1 to 40 to the ﬁnancial statements, includ ing: material accounting policy informat ion; Information marked as ‘audited’ with in the D irectors’ remuneration report from page 143 to page 173; and Risk Review and Capital Review disclosures marked as ‘audited’ from page 193 to page 274. The ﬁnancial report ing framework that has been applied in their preparation is applicable law and UK IAS and EU IFRS; and as regards the Parent Company ﬁnancial statements, UK IAS as applied in accordance with section 408 of the Companies Act 2006. Basis for opin ion We conducted our audit in accordance with International Standards on Audit ing (UK) (ISAs (UK)) and appl icable law. Our responsib il it ies under those standards are further described in the Auditor’s responsib il it ies for the aud it of the ﬁnancial statements sect ion of our report. We believe that the audit evidence we have obtained is sufﬁc ient and appropriate to provide a basis for our opin ion. Independence We are independent of the Group and the Company in accordance with the ethical requirements that are relevant to our audit of the ﬁnanc ial statements in the UK, includ ing the FRC’s Ethical Standard as applied to listed public interest entit ies, and we have fulﬁlled our other eth ical responsib il it ies in accordance with these requirements. The non-audit services prohib ited by the FRC’s Eth ical Standard were not provided to the Group or the Company and we remain independent of the Group and the Company in conducting the audit. Conclusions relating to going concern In audit ing the ﬁnancial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the ﬁnanc ial statements is appropriate. Our evaluation of the directors’ assessment of the Group and the Parent Company’s abil ity to cont inue to adopt the going concern basis of accounting included: • performing a risk assessment to ident ify factors that could impact the going concern basis of accounting, includ ing considerat ion of pr inc ipal and emerg ing risks; • assessing management’s going concern assessment, includ ing the Group’s forecast cap ital, liqu id ity and leverage ratios over the period of twelve months from 21 February 2025, to evaluate the headroom against min imum regulatory requ irements and the risk appetite set by the directors; • engaging EY valuation and economic special ists to assess and challenge the reasonableness of assumptions used to develop the forecasts in the Corporate Plan (5-year forward looking plan of the business) and evaluating the accuracy of histor ical forecast ing; • assessing the Group’s funding plan and repayment plan for funding instruments maturing over the period of twelve months from 21 February 2025; • understanding and evaluating credit rating agency ratings; • engaging EY prudential regulatory special ists to assess the results of management’s stress testing, includ ing considerat ion of pr inc ipal and emerg ing risks, on funding, liqu id ity, and regulatory capital; • review ing correspondence w ith prudential regulators and authorit ies for matters that may impact the going concern assessment; and • evaluating the going concern disclosure included in note 1 to the ﬁnancial statements to assess that the d isclosure was appropriate and in conformity with the reporting standards. Independent Auditor’s Report to the members of Standard Chartered PLC Financ ial statements Standard Chartered – Annual Report 2024 277 Based on the work we have performed, we have not ident iﬁed any material uncertaint ies relat ing to events or condit ions that, ind iv idually or collectively, may cast sign iﬁcant doubt on the Group and the Parent Company’s abil ity to cont inue as a going concern for a period of twelve months from 21 February 2025. In relation to the Group and the Parent Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the ﬁnanc ial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting. Our responsib il it ies and the respons ib il it ies of the d irectors with respect to going concern are described in the relevant sections of this report. However, because not all future events or condit ions can be pred icted, this statement is not a guarantee as to the Group’s abil ity to cont inue as a going concern. Overview of our audit approach Audit scope • We performed an audit of the complete ﬁnanc ial informat ion of 10 components in 8 countries and audit procedures on specif ic balances for a further 8 components in 7 countries. • We performed central procedures for certain audit areas and balances as outlined in Tailor ing the scope section of our report. Key audit • Credit impa irment matters • Basis of accounting and impa irment assessment of China Bohai Bank (interest in associate) • Impairment of investments in subsid iary undertakings • Valuation of ﬁnanc ial instruments held at fair value with higher risk characterist ics. Material ity • Overall group material ity of $340m wh ich represents 5% of adjusted proﬁt before tax. An overview of the scope of the parent company and group audits Tailor ing the scope In the current year our audit scoping has been updated to reﬂect the new requirements of ISA (UK) 600 (Revised). We have followed a risk-based approach when developing our audit approach to obtain sufﬁc ient appropr iate audit evidence on which to base our audit opin ion. We performed risk assessment procedures, with input from our component auditors, to ident ify and assess r isks of material misstatement of the Group ﬁnancial statements and ident iﬁed s ign iﬁcant accounts and disclosures. When ident ify ing components at which audit work needed to be performed to respond to the ident iﬁed r isks of material misstatement of the Group ﬁnancial statements, we cons idered our understanding of the Group and its business environment, the applicable ﬁnanc ial framework, the Group’s system of internal control at the entity level, the existence of centralised processes, IT applicat ion environment, and any relevant internal audit results. We took a centralised approach to audit ing certa in processes and controls, as well as the substantive testing of specif ic balances. This included audit work over the Group’s Global Business Services shared services centre (SSC), Corporate and Investment Banking (CIB) SSC, Credit Impairment SSC and Technology. We determined that centralised audit procedures can be performed across certain components for the key audit matters outlined later in this report, and for other audit areas, includ ing: Revenue recogn it ion; Management overr ide of controls; Technology costs; Impairment of goodwill; Going concern and long-term viab il ity; Hedge accounting; Climate risk; Share based payments; Taxation; Legal and regulatory matters; Centralised reconcil iat ions; Onerous contracts, includ ing impa irment of leased propert ies; IT matters; and certain restructuring and transformation programmes. In addit ion to the above areas, for selected components in Germany, Japan, South Africa, Iraq and Singapore, the primary audit engagement team (the ‘Primary Audit Team’) performed certain procedures centrally over the cash balances as at 31 December 2024. These components are separate to those described below. We ident iﬁed 18 components in 14 countries as ind iv idually relevant to the Group due a sign iﬁcant r isk or an area of higher assessed risk of material misstatement of the group ﬁnanc ial statements being associated with the components, or due to ﬁnancial s ize of the component relative to the group. For those ind iv idually relevant components, we ident iﬁed the sign iﬁcant accounts where aud it work needed to be performed at these components by applying professional judgement, having considered the group sign iﬁcant accounts on which centralised procedures are performed, the reasons for ident ify ing the ﬁnanc ial report ing component as an ind iv idually relevant component and the size of the component’s account balance relative to the group sign iﬁcant ﬁnancial statement account balance. We then considered whether the remain ing group s ign iﬁcant account balances that are not subject to audit procedures, in aggregate, could give rise to a risk of material misstatement of the group ﬁnancial statements. Having ident iﬁed the components for wh ich work will be performed, we determined the scope to assign to each component. Of the 18 components selected, we designed and performed audit procedures on the entire ﬁnanc ial informat ion of 10 components (“full scope components”). For 5 components, we designed and performed audit procedures on specif ic sign iﬁcant ﬁnancial statement account balances or disclosures of the ﬁnanc ial informat ion of the component (“specif ic scope components”). For the rema in ing 3 components, we performed specif ied aud it procedures to obtain evidence for one or more relevant assertions. Groups Absolute PBT Group Total Assets Groups Absolute Operating Income 2024 2023 2024 2023 2024 2023 Full Scope 64% 62% 87% 87% 72% 72% Specif ic Scope 10% 15% 5% 7% 9% 14% Specif ied Procedures 2% 1% 0.30% 0.10% 2% 1% Total 76% 78% 92% 94% 83% 87% Of the remain ing components that together represent 24 per cent of the Group’s absolute PBT, none are ind iv idually greater than 1.9 per cent. For certain of these components, we performed other procedures at the Group level which included: performing analytical reviews at the Group ﬁnanc ial statement level, evaluating entity level controls, performing audit procedures on the centralised shared service centres, testing of consolidat ion journals and intercompany elim inat ions, inqu ir ing with certain overseas EY teams on the outcome of prior year local statutory audits (where audited by EY) to ident ify any potent ial risks of material misstatement to the Group ﬁnancial statements. We also had regard for the extent of centralised procedures in respect of key audit matters. 278 Standard Chartered – Annual Report 2024 Financ ial statements Independent auditor’s report Involvement with component teams In establish ing our overall approach to the Group aud it, we determined the type of work that needed to be undertaken at each of the components by us, as the Primary Audit Team or by component auditors from other ﬁrms operating under our instruct ion. All of the d irect components of the Group (full, specif ic or spec if ied procedures) were aud ited by EY global network ﬁrms. There was one non-EY component team audit ing a s ingle component in a single location, which was instructed by a direct component of the Group. Audit procedures were performed on 3 full scope components (includ ing the aud it of the Company) directly by the Primary Audit Team (EY London) in the United Kingdom. Where components were audited by the Primary Audit Team, this was under the direct ion and superv is ion of the Sen ior Statutory Auditor. For the remain ing 15 components, where the work was performed by component auditors, we determined the appropriate level of involvement to enable us to determine that sufﬁc ient aud it evidence had been obtained as a basis for our opin ion on the Group as a whole. In addit ion to the above, the Pr imary Audit Team also performed full-scope audit procedures on components related to the Group consolidat ion process. In addit ion, the Group has central ised processes and controls over key areas in its shared service centres. Members of the Primary Audit Team undertook direct oversight, review and coordinat ion of our shared serv ice centre audits. The Primary Audit Team continued to follow a programme of planned vis its to component teams and shared serv ice centres. During the current year’s audit cycle, vis its were undertaken by the Primary Audit Team to the component teams in the following locations: • Hong Kong • India (includ ing the shared serv ices centre) • Mainland China • Malaysia (includ ing the shared serv ices centre) • Pakistan • Republic of Korea • Singapore (includ ing the shared serv ices centre) • United Arab Emirates • United States of America These vis its involved discuss ing the aud it approach with the component team and any issues aris ing from the ir work, meeting with local management, attending planning and closing meetings, and review ing relevant aud it working papers on risk areas. In addit ion to the s ite vis its, the Pr imary Audit Team interacted regularly with the component and SSC audit teams where appropriate during various stages of the audit, reviewed relevant working papers and deliverables to the Primary Audit Team, and were responsible for the scope and direct ion of the aud it process. The Primary Audit Team also undertook video conference meetings with component and SSC audit teams and management. These virtual meetings involved discuss ing the audit approach and any issues aris ing from the ir work, as well as performing remote reviews of key audit workpapers. This, together with the procedures performed at Group level, gave us appropriate evidence for our opin ion on the Group and Company ﬁnancial statements. Climate change Stakeholders are increas ingly interested in how climate change will impact the economy, includ ing the bank ing sector, and further how this may consequently impact the valuation of assets and liab il it ies held on bank balance sheets. The Group manages climate risk according to the characterist ics of the impacted risk types and is embedding climate-risk considerat ions into relevant frameworks, includ ing pr inc ipal risk type frameworks, and processes. The assessment of that risk by the Group is explained on pages 256 to 257 in the ‘Risk Review and Capital Review’ section, and on pages 57 to 102 in the ‘Sustainab il ity review’ section of the Annual Report, where management has also explained their climate commitments. All of these disclosures form part of the ‘Other informat ion’, rather than the audited ﬁnanc ial statements. Our procedures on these unaudited disclosures therefore consisted solely of consider ing whether they are mater ially incons istent w ith the ﬁnancial statements or our knowledge obta ined in the course of the audit or otherwise appear to be materially misstated, in line with our responsib il it ies on ‘Other informat ion’. In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any consequential material impact on its ﬁnancial statements. The Group has explained in the ‘Sustainab il ity review’ section of the Annual Report how they have reﬂected the impact of climate change in their ﬁnanc ial statements, includ ing how this aligns with their commitment to the aspirat ions of the Paris Agreement to achieve net zero emiss ions by 2050. Sign iﬁcant judgements and est imates relating to climate change are included in the section ‘Climate change impact on the Group’s balance sheet’ of note 1 to the ﬁnancial statements. As stated in these disclosures, the Group has considered climate change to be an area which can impact accounting estimates and judgements through the uncertainty of future events and the impact of that uncertainty on the Group’s assets and liab il it ies. Our audit effort in consider ing the impact of climate change on the ﬁnancial statements was focused on evaluat ing whether management’s assessment of the impact of climate risk has been appropriately reﬂected in the valuation of assets and liab il it ies, where mater ial and where it can be reliably measured, following the currently effective requirements of UK IAS and EU IFRS. This was in the context of the Group’s process being lim ited, g iven that this is a highly evolving area, as a result of lim itat ions in the data available and the nascent modelling capabil it ies, and as the Group considers how it further embeds its climate ambit ions into the planning process. As part of this evaluation, we performed our own risk assessment, supported by our climate change special ists, to determine the risks of material misstatement in the ﬁnancial statements from cl imate change which needed to be considered in our audit. We also challenged the Directors’ considerat ions of cl imate change risks in their assessment of going concern and viab il ity, and the associated disclosures. Where considerat ions of climate change were relevant to our assessment of going concern, these are described above. Based on our work, we have considered the impact of climate change on the ﬁnancial statements to impact certain key audit matters. Details of our procedures and ﬁnd ings are included in our explanation of key audit matters below. 279 Standard Chartered – Annual Report 2024 Financ ial statements Key audit matters Key audit matters are those matters that, in our professional judgment, were of most sign iﬁcance in our audit of the ﬁnanc ial statements of the current period and include the most sign iﬁcant assessed r isks of material misstatement (whether or not due to fraud) that we ident iﬁed. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and direct ing the efforts of the engagement team. These matters were addressed in the context of our audit of the ﬁnanc ial statements as a whole, and in our opin ion thereon, and we do not prov ide a separate opin ion on these matters. Risk Our response to the risk Credit Impairment Refer to the Audit Committee Report (page 124); Note 8 of the ﬁnancial statements; and relevant cred it risk disclosures (includ ing pages 207 to 246) At 31 December 2024, the Group reported total credit impa irment balance sheet prov is ion of $5,267 m ill ion (2023: $5,601 mill ion). Management’s judgements and estimates are highly subject ive as a result of the sign iﬁcant uncerta inty associated with the estimat ion of expected future cred it losses. Assumptions with increased complexity in respect of the tim ing and measurement of expected credit losses (ECL) include: • Staging – the determinat ion of what const itutes sign iﬁcant increase in credit risk and consequent timely allocation of qualify ing assets to the appropr iate stage in accordance with IFRS 9; • Model output and adjustments – Accounting interpretat ions, modelling assumptions and data used to develop, monitor and run the models that calculate the ECL, includ ing the appropriateness, completeness and valuation of post-model adjustments applied to model output to address ident iﬁed model deﬁcienc ies or risks not fully captured by the models; • Economic scenarios – Sign iﬁcant judgements involved in the determinat ion of the appropr iateness of economic variables, the future forecasting of these variables and the parameters used in both the base case forecast and the Monte Carlo Simulat ion. The assessment of non-l inear ity produced by the Monte Carlo simulat ion, the benchmark ing of the output to backstop discrete scenarios and the evaluation of the need for any Post Model adjustments; • Management overlays – Appropriateness, completeness and valuation of risk event overlays to capture risks not ident iﬁed by the cred it impa irment models, includ ing the considerat ion of the r isk of management override; and • Indiv idually assessed ECL allowances – Measurement of ind iv idual provis ions includ ing the assessment of probab il ity weighted recovery scenarios, exit strategies, collateral valuations, expected future cashﬂows and the tim ing of these cashﬂows. In 2024, the most material factors impact ing the ECL were in relation to the Commercial Real Estate portfolio in Mainland China and Hong Kong, geopolit ical uncerta inty and the continu ing impact of higher interest rates and inﬂat ion. In addit ion, we have cons idered the impact of climate on the impa irment prov is ions. Overall, in line with the prior year the level of judgement and estimat ion rema ins elevated as a result of the factors above and consequently the risk of a material misstatement to the ECL remained consistent with that of the prior year. We evaluated the design of controls relevant to the Group’s systems and processes over material ECL balances, involv ing EY spec ial ists to assist us in performing our procedures where relevant. Based on our evaluation we selected the controls upon which we intended to rely and tested those for operating effectiveness. We performed an overall stand-back assessment of the ECL allowance in total and by stage to determine if the ECL was reasonable. We considered the overall credit quality of the Group’s portfolios, risk proﬁle, the impact of sovereign risk, challenges facing the Commercial Real Estate sector in Mainland China and Hong Kong and the impact of higher interest rates for longer in certain markets. We performed peer benchmarking to the extent that this was considered relevant and invest igated and sought explanat ions for any areas ident iﬁed as be ing outliers. Our assessment also included the evaluation of the macroeconomic environment by consider ing trends in the economies and countries to which the Group is exposed. Staging – We evaluated the criter ia used to determ ine sign iﬁcant increase in credit risk includ ing quant itat ive backstops w ith the resultant allocation of ﬁnanc ial assets to stage 1, 2 or 3 in accordance with IFRS 9. We reperformed the staging distr ibut ion for a sample of ﬁnancial assets and assessed the reasonableness of staging downgrades applied by management. We assessed the appropriateness of changes to the staging criter ia. To test the completeness of the ident iﬁcation of s ign iﬁcant increase in credit risk, we challenged the credit risk ratings (includ ing appropriate operation of quantitat ive backstops) for a sample of performing accounts and other accounts exhib it ing risk characterist ics such as ﬁnancial d iff iculty, deferment of payment, late payment and heightened risk accounts appearing on the watchlist. Modelled output and adjustments – With the support of our EY credit risk modelling special ists, we performed a r isk assessment on models involved in the ECL calculation using EY independently determined quantitat ive and qual itat ive cr iter ia and used th is risk rating as a basis to select a sample of models to test. Based on this risk assessment, we evaluated a sample of ECL models by assessing the reasonableness of underpinn ing assumpt ions, inputs and formulae used. This included a combinat ion of assess ing the appropriateness of model design, model implementat ion and validat ion, sens it iv ity testing and recalculating the Probabil ity of Default, Loss Given Default and Exposure at Default parameters. Together with our modelling special ists, we also assessed mater ial post-model adjustments that were applied as a response to risks not fully captured by the models or for known model deﬁcienc ies. This included the completeness and appropriateness of these adjustments. We did not rely on controls over model monitor ing and therefore adopted a substantive approach compris ing reperformance of model monitor ing procedures for models class if ied as s ign iﬁcant or higher risk in accordance with our EY independent risk assessment. In response to the Bank’s model simpl iﬁcation program that resulted in a number of low risk or immater ial models mov ing to a loss rate approach, we challenged whether there was a need for an overlay as result of the models no longer includ ing a forward look ing element as required by IFRS 9. To evaluate data quality, we performed sample testing over the completeness and accuracy of key data elements assessed to be material to the modelled ECL output, back to source evidence. Financ ial statements Independent auditor’s report 280 Standard Chartered – Annual Report 2024 Risk Our response to the risk Credit Impairment continued Economic scenarios – In collaboration with our economists, we challenged the completeness and appropriateness of the macroeconomic variables used as inputs to the ECL models. Addit ionally, we involved our economic special ists to ass ist us in evaluating the reasonableness of the base forecast for a sample of macroeconomic variables most relevant for the Group’s ECL calculation. Procedures performed included benchmarking the forecast for a sample of macroeconomic variables to peers, histor ical data and a var iety of global external sources. We assessed the output for a sample of economic variables across different markets from the Monte Carlo simulat ion for reasonableness. We reviewed and challenged the appropriateness of the underlying coding, assumptions, and output of the Monte Carlo simulat ion. We assessed the reasonableness of the non-linear ity impact on ECL allowances. We engaged our economists, to assess and challenge the Group’s choice of discrete scenarios to benchmark the output from the Monte Carlo model and determine the sensit iv ity analysis as set out on pages 242 and 243 in the annual report. This challenge included the choice of narrative scenarios and the weights applied to each scenario. We also performed a stand-back assessment by benchmarking the uplift and overall ECL charge and provis ion coverage to peers. Management overlays – We challenged the completeness and appropriateness of overlays used for risks not captured by the models. We focussed our challenge on Commercial Real Estate in Mainland China and Hong Kong, the increas ing levels of uncerta inty in the outlook for Bangladesh given the polit ical s ituat ion and the introduct ion of a new overlay relat ing to Bank’s exposure to clients trading on two failed e-commerce platforms in South Korea. Our procedures included assessing the need for management overlays, evaluating the assumptions and judgments used to determine the overlays taking current market condit ions into account, and computing independent ranges where appropriate. In addit ion, w ith the support from our climate risk modelling special ists we evaluated the in it ial ECL produced by management’s models and assessed the appropriateness of the adjustments to the model output to determine the overall climate overlay. Indiv idually assessed ECL allowances – We selected a sample of ind iv idually assessed provis ions to recalculate. Our recalculat ion procedures included challenging management’s forward looking economic assumptions of the recovery outcomes ident iﬁed, cashﬂow proﬁles and tim ings and the ind iv idual probabil ity weight ings used for each scenar io. We also engaged our valuation special ists to test the value of the collateral used in management’s calculations on a sample basis. Key observations communicated to the Audit Committee We communicated that we are satisf ied the Bank’s ECL prov is ions were reasonably est imated and materially in compliance with IFRS 9. We highl ighted the follow ing matters to the Audit Committee that contributed to our overall conclusion: • Our evaluation of the appropriateness of the sign iﬁcant increase in credit risk triggers, and the results of our staging reperformance. • For ind iv idually assessed ECL allowances, the overall reasonableness of the provis ions, includ ing assumpt ions applied, with a focus on exposures on Commercial Real Estate in Mainland China and Hong Kong. • Our assessment of the appropriateness of post model adjustments and overlays, includ ing overlays relat ing to Commercial Real Estate in Mainland China and Hong Kong, and non-linear ity. • Our assessment of the appropriateness of the Group’s models to generate the ECL and staging outcomes includ ing the appropriateness and valid ity of the data used in the models and to generate the staging and consequent ECL. • Our assessment of the appropriateness of the Group’s climate models to compute the impact of climate related risks on the portfolio, noting the judgmental nature of the output and that these ﬁrst generation models are expected to evolve sign iﬁcantly over time. We also highl ighted to the Comm ittee that there remains increased uncertainty and volatil ity in determin ing expected cred it losses due to the elevated risks in the macroeconomic and geopolit ical landscape. How we scoped our audit to respond to the risk and involvement with component teams For the purposes of determin ing the scope of work to be conducted centrally and by component teams, we cons idered the following: • The Bank’s material IFRS 9 systems and processes, includ ing modelled ECL, and where those systems and process were located • The Groups gross exposure and ECL by jurisd ict ion • The Bank’s and EY’s independent sovereign risk assessment • Jurisd ict ion of orig in for ind iv idual stage 3 exposures Based on this assessment, we determined that credit related procedures were required to be performed centrally and by 9 full scope, 5 specif ic scope and 2 spec if ied scope locat ions. The Group audit teams involvement with the component teams and procedures performed are detailed in the “Involvement with component teams” section of our report. Financ ial statements Standard Chartered – Annual Report 2024 281 Risk Our response to the risk Basis of accounting and impa irment assessment of China Bohai Bank (Interest in Associate) Refer to the Audit Committee Report (page 124); Accounting polic ies (page 361); and Note 32 of the ﬁnancial statements • Interest in Associate – China Bohai Bank $738 mill ion (2023: $700 mill ion). • Other impa irment – Ch ina Bohai Bank – NIL (2023: $850 mill ion). • Cumulative impa irment: $1,459 m ill ion (2023: $1,459 m ill ion). At 31 December 2024, the Group’s share of China Bohai Bank’s market capital isat ion was $400m lower than the carrying value of $738m. We focused on judgements and estimates, includ ing the appropriateness of the equity accounting treatment under IAS 28 and the assessment of whether the investment was impa ired. Basis of accounting The Group holds a 16.26 per cent stake in China Bohai Bank and equity accounts for the investment as an associate, on the grounds that the Group is able to exercise sign iﬁcant inﬂuence over China Bohai Bank. IAS 28 states that if the entity holds, directly or ind irectly, less than 20 per cent of the voting power of the investee, it is presumed that the entity does not have sign iﬁcant inﬂuence, unless such inﬂuence can be clearly demonstrated. There is a risk that the equity accounting treatment may not be appropriate, if the Group cannot demonstrate that it exerts sign iﬁcant inﬂuence over China Bohai Bank. The risk in respect of sign iﬁcant inﬂuence has not changed compared to the prior year. Impairment testing At 31 December 2024, China Bohai Bank’s market capital isat ion was sign iﬁcantly lower than the carry ing value of the investment. In addit ion, the ﬁnancial performance of Ch ina Bohai Bank deteriorated during 2024 and China Bohai Bank did not pay a div idend for a second year. These matters are ind icators of impa irment. Impairment of the investment in China Bohai Bank is determined by comparing the carrying value to the higher of value in use (VIU) and fair value less costs to sell. The VIU is modelled by reference to future cashﬂow forecasts (forecast proﬁt, includ ing a ha ircut for regulatory capital), exit multiples, discount rate and macroeconomic assumptions such as forward market interest rate curves. The assumptions underpinn ing management’s assessment of the VIU are subject to estimat ion uncerta inty and consequently, there is a risk that if the judgements and assumptions are inappropr iate, the investment in China Bohai Bank may be misstated. We obtained an understanding of management’s process and evaluated the design of controls. Our audit strategy was fully substantive. Basis of accounting We evaluated the evidence that the Group presented to demonstrate that it exercises sign iﬁcant inﬂuence over China Bohai Bank, through Board representation, membership of Board Committees and sharing of technical advice. We observed certain meetings alongside Group management and China Bohai Bank management to ident ify facts and c ircumstances impact ing the assessment of s ign iﬁcant inﬂuence exercised by the Group. Impairment testing We assessed the appropriateness of the Group’s VIU methodology for compliance with the accounting standards. We tested the mathematical accuracy of the VIU model and engaged our valuation and modelling special ists to support the aud it team in calculating an independent range for the VIU. We performed audit procedures to assess the reasonableness of the Group’s forecast of the future cashﬂows relating to Bohai, and other key assumptions with regard to the relevance and reliab il ity of data inputs. We performed a stand-back assessment to determine whether the carrying value of the Group’s investment in China Bohai Bank was reasonable. We considered the macroeconomic environment in China, ratings agency reports and public disclosures by Bohai. We benchmarked the forecasts to reputable broker reports published for comparable companies. We assessed the appropriateness of disclosures in the annual report in relation to China Bohai Bank, includ ing the impact of reasonably possible changes in key assumptions on the carrying value of the investment. Key observations communicated to the Audit Committee On the basis of the evidence, we concluded that the Group continues to mainta in s ign iﬁcant inﬂuence over China Bohai Bank as at 31 December 2024.We highl ighted our assessment of the impa irment methodology, its consistency year-on-year and our view on sign iﬁcant assumpt ions to the VIU. We concluded that the Interest in Associate – China Bohai Bank balance and the associated ﬁnanc ial statement d isclosures were not materially misstated as at 31 December 2024. How we scoped our audit to respond to the risk and involvement with component teams We performed centralised audit procedures over the risk, with the support of the EY Hong Kong and non-EY Component team in performing certain procedures to address the risk. The Group audit teams involvement with the component teams and procedures performed are detailed in the Involvement with component audit teams’ section of our report. 282 Standard Chartered – Annual Report 2024 Financ ial statements Independent auditor’s report Risk Our response to the risk Impairment assessment of investments in subsid iary undertak ings Impairment of investments in subsid iary undertak ings: Accounting polic ies (page 361); and Note 32 of the ﬁnancial statements. Refer to the Audit Committee Report (page 124). In the Parent Company ﬁnancial statements as at 31 December 2024, the investment in subsid iary undertak ings balance was $61,593 mill ion (2023: $60,791 m ill ion). On an annual basis, management is required to perform an impa irment assessment for ind icators of impa irment in respect of investments in subsid iary undertak ings. Where ind icators of impa irment are ident iﬁed, the recoverable amount of the investment should be estimated. The Group ident iﬁed ind icators of impa irment of investments in subsid iary undertak ings, includ ing macroeconom ic and geopolit ical factors wh ich have an impact on the ﬁnanc ial posit ion and performance of the subs id iar ies. In assessing for ind icators of impa irment, among other procedures, management compares the Net Asset Value (‘NAV’) of the subsid iary to the carry ing value of each direct subsid iary of the Parent Company. Where the net assets do not support the carrying value, the recoverable amount is estimated by determin ing the h igher of VIU or fair value less cost to sell. Where the recoverable amount is based on the VIU, this is modelled by reference to future cashﬂow forecasts (proﬁt forecast includ ing a regulatory cap ital haircut adjustment), discount rates and macroeconomic assumptions such as long-term growth rates. There is a risk that if the judgements and assumptions underpinn ing the impa irment assessments are inappropr iate, then the investments in subsid iar ies balances may be misstated. The level of risk remains consistent with the prior year. We obtained an understanding of management’s process and evaluated the design of controls. Our audit strategy was fully substantive. We assessed the appropriateness of the Group’s methodology for testing the impa irment of investments in subsid iary undertak ings for compliance with accounting standards. We agreed the NAV of the subsid iar ies to their carrying value to conﬁrm impa irment or reversal of impa irment recogn ised in the Parent`s Company ﬁnancial results. We agreed the inputs in the VIU model to their source and tested the mathematical accuracy of the VIU model. We engaged EY special ists to support the aud it team in assessing reasonableness of the regulatory haircut adjustment to future proﬁtab il ity forecasts and calculating an independent range for assumptions underlying the VIU calculations, such as the discount rate and long-term growth rate. We also reconciled the future proﬁtab il ity forecasts of each subsid iary to the Group’s approved Corporate Plan (‘the Plan’). We engaged our special ist team to determ ine the reasonableness of the forward macroeconomic inputs used in the Plan. We assessed the appropriateness of disclosures for impa irment of investments in subsid iary undertak ings in accordance with IAS 36. Key observations communicated to the Audit Committee Investments in subsid iary undertak ings balance reported in the Parent Company ﬁnanc ial statements and the assoc iated disclosures, are not materially misstated as at 31 December 2024. How we scoped our audit to respond to the risk and involvement with component teams All audit work performed to address this risk was materially undertaken centrally by the Group audit team. 283 Standard Chartered – Annual Report 2024 Financ ial statements Risk Our response to the risk Valuation of ﬁnanc ial instruments held at fair value with higher risk characterist ics Refer to the Audit Committee Report (page 124); Accounting polic ies (page 295); and Note 13 of the ﬁnancial statements. At 31 December 2024, the Group reported ﬁnancial assets measured at fair value of $348,408 mill ion (2023: $301,976 mill ion), and ﬁnancial l iab il it ies at fa ir value of $167,526 mill ion (2023: $139,157 mill ion), of wh ich ﬁnanc ial assets of $8,053 m ill ion (2023: $6,714 mill ion) and ﬁnancial l iab il it ies of $4,937 m ill ion (2023: $2,960 mill ion) are class if ied as Level 3 in the fair value hierarchy. The fair value of ﬁnanc ial instruments with higher risk characterist ics involves the use of management judgement in the selection of valuation models and techniques, pric ing inputs and assumptions and fair value adjustments. A higher level of estimat ion uncerta inty is involved for ﬁnanc ial instruments valued using complex models; pric ing inputs that have lim ited observab il ity; and fa ir value adjustments, includ ing Credit Valuation Adjustments for ill iqu id counterparties. We considered the following portfolios presented a higher level of estimat ion uncerta inty: • Derivat ives: Level 3 and certa in Level 2 derivat ives ( includ ing those embedded with in customer accounts, debt secur it ies in issue, and deposits by banks) whose valuation involves the use of complex models; and • Other Level 3 ﬁnancial instruments: equity shares, loans and advances to customers, reverse repurchase agreements and other sim ilar secured lend ing, and debt securit ies and other elig ible b ills with unobservable pric ing inputs. The level of risk remains consistent with the prior year. We evaluated the design and operating effectiveness of controls relating to the valuation of ﬁnanc ial instruments, includ ing Independent Price Verif icat ion (IPV), model validat ion, fa ir value adjustments, and sign iﬁcant deal rev iew. Among other procedures, we engaged our valuation special ists to assist the audit team in performing the following testing on a risk-assessed sample basis: • Test valuations dependent on complex models by independently revaluing Level 3 and certain Level 2 derivat ive ﬁnancial instruments (includ ing those embedded w ith in customer accounts, debt securit ies in issue, and deposits by banks) to assess the appropriateness of models and the adequacy of assumptions and inputs used by the Group; • Test valuations of other Level 3 ﬁnanc ial instruments with higher estimat ion uncerta inty, such as equity shares, loans and advances to customers, reverse repurchase agreements and other sim ilar secured lending, and debt securit ies and other el ig ible b ills. Where appropriate, we compared management’s valuation to our own independently developed range; • Assessed the appropriateness of pric ing inputs as part of the IPV process; and • Compared the methodology used for fair value adjustments to current market practice. We revalued a sample of valuation adjustments, compared market inputs to third party data, and challenged the basis for determin ing ill iqu id credit spreads. Where differences between our independent valuation and management’s valuation were outside our thresholds, we performed addit ional test ing to assess the impact on the valuation of ﬁnancial instruments. Throughout our audit procedures we considered the continu ing uncertainty aris ing from the current macroeconom ic environment. In addit ion, we assessed whether there were any ind icators of aggregate bias in ﬁnanc ial instrument marking and methodology assumptions. Key observations communicated to the Audit Committee We concluded that assumptions used by management to estimate the fair value of ﬁnanc ial instruments with higher risk characterist ics, and the recogn it ion of related income, were reasonable. We highl ighted the follow ing matters to the Audit Committee: • We did not ident ify mater ial differences aris ing from our independent testing of valuations dependent on complex models; • The fair values of other Level 3 ﬁnanc ial instruments, valued using pric ing inputs with lim ited observab il ity, were not mater ially misstated as at 31 December 2024, based on our independent calculations; and • Valuation adjustments, includ ing Cred it Valuation Adjustments for ill iqu id counterparties, were appropriate, based on our analysis of market data and benchmarking of pric ing informat ion. How we scoped our audit to respond to the risk and involvement with component teams We performed centralised audit procedures over this risk. These procedures were performed by the Primary Team and CIB SSC, covering 99.1 per cent of the risk amount. In the prior year, our auditor’s report included key audit matters in relation to priv ileged access management and the valuat ion of goodwill. In the current year, following the implementat ion of management’s remed iat ion programme, the r isk relating to priv ileged access, has reduced below the threshold for be ing a key audit matter. Also, due to a reduction of the risk of material impa irment of goodw ill, we no longer consider it a key audit matter. 284 Standard Chartered – Annual Report 2024 Financ ial statements Independent auditor’s report Our applicat ion of mater ial ity We apply the concept of material ity in planning and performing the audit, in evaluating the effect of ident iﬁed misstatements on the audit and in forming our audit opin ion. Material ity The magnitude of an omiss ion or m isstatement that, ind iv idually or in the aggregate, could reasonably be expected to inﬂuence the economic decis ions of the users of the ﬁnancial statements. Mater ial ity prov ides a basis for determin ing the nature and extent of our aud it procedures. We determined material ity for the Group to be $340 m ill ion (2023: $274 mill ion), wh ich is 5 per cent (2023: 5 per cent) of adjusted proﬁt before tax. This reﬂects statutory proﬁt before tax adjusted for certain non-recurring items. We believe that adjusted proﬁt before tax provides us with the most appropriate and relevant measure for the users of the ﬁnancial statements, g iven the Group is proﬁt-making, it is consistent with the wider industry, and it is the standard for listed and regulated entit ies. Th is increase from prior year is driven by an increase in our material ity bas is of adjusted proﬁt before tax and is reﬂected in all material ity thresholds discussed below. We determined material ity for the Parent Company to be $306 mill ion (2023: $247 m ill ion), wh ich represents 90 per cent of Group material ity (2023: 90 per cent) and equates to 0.6 per cent (2023: 0.5 per cent) of the equity of the Parent company. We believe that equity provides us with the most appropriate measure for the users of the Parent Company’s ﬁnancial statements, g iven that the Parent Company is primar ily a hold ing company. Material ity Adjustments Starting basis • Reported proﬁt before tax – $6,014m • Non-recurring items: $793m • Adjusted proﬁt before tax – $6,807m • Material ity of $340m (5% of adjusted proﬁt before tax) During the course of our audit, we reassessed in it ial material ity. Th is assessment resulted in a higher ﬁnal material ity calculated based on the actual ﬁnancial performance of the Group for the year. Performance material ity The applicat ion of mater ial ity at the ind iv idual account or balance level. It is set at an amount to reduce to an appropriately low level the probabil ity that the aggregate of uncorrected and undetected misstatements exceeds material ity. On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was that performance material ity was 50 per cent (2023: 50 per cent) of our planning material ity, namely $170m (2023: $137m). We have set performance material ity at th is percentage due to a variety of risk factors, such as the expectation of misstatements, internal control environment considerat ions, and other factors such as the global complexity of the Group. Audit work was undertaken at component locations for the purpose of responding to the assessed risks of material misstatement of the group ﬁnanc ial statements. The performance material ity set for each component is based on the relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component. In the current year, the range of performance material ity allocated to components was $16m to $46m (2023: $11.4m to $26.2m). Reporting threshold An amount below which ident iﬁed m isstatements are considered as being clearly triv ial. We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of $17m (2023: $14m), which is set at 5 per cent of planning material ity, as well as differences below that threshold that, in our view, warranted reporting on qualitat ive grounds. We evaluate any uncorrected misstatements against both the quantitat ive measures of mater ial ity d iscussed above and in light of other relevant qualitat ive cons iderat ions in forming our opin ion. Other informat ion The other informat ion compr ises the informat ion included in the Annual Report set out on pages 1 to 406, includ ing the Strategic report (pages 1 to 46), the Financ ial Rev iew (pages 47 to 56), the Sustainab il ity Review (pages 57 to 102), the Directors’ report (pages 103 to 191), the Statement of directors’ responsib il it ies (page 192) and the informat ion not marked as ‘audited’ in the Risk review and Capital review section (pages 193 to 274), and the Supplementary informat ion (pages 381 to 406), other than the ﬁnancial statements and our auditor’s report thereon. The directors are responsible for the other informat ion conta ined with in the annual report. Our opin ion on the ﬁnancial statements does not cover the other informat ion and, except to the extent otherw ise explic itly stated in this report, we do not express any form of assurance conclusion thereon. Our responsib il ity is to read the other informat ion and, in doing so, consider whether the other informat ion is materially incons istent w ith the ﬁnanc ial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we ident ify such mater ial incons istenc ies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the ﬁnanc ial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other informat ion, we are required to report that fact. We have nothing to report in this regard. 285 Standard Chartered – Annual Report 2024 Financ ial statements Opin ions on other matters prescr ibed by the Companies Act 2006 In our opin ion, the part of the d irectors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opin ion, based on the work undertaken in the course of the audit: • the informat ion g iven in the strategic report and the directors’ report for the ﬁnanc ial year for wh ich the ﬁnanc ial statements are prepared is consistent with the ﬁnanc ial statements; and • the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not ident iﬁed mater ial misstatements in the strategic report or the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opin ion: • adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not vis ited by us; or • the Parent Company ﬁnancial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specif ied by law are not made; or • we have not received all the informat ion and explanat ions we require for our audit. Corporate Governance Statement We have reviewed the directors’ statement in relation to going concern, longer-term viab il ity and that part of the Corporate Governance Statement relating to the group and company’s compliance with the provis ions of the UK Corporate Governance Code specif ied for our rev iew by the UK List ing Rules. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the ﬁnanc ial statements or our knowledge obta ined during the audit: • Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertaint ies ident iﬁed set out on page 297; • Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period is appropriate set out on pages 45 to 46; • Director’s statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets its liab il it ies set out on page 46; • Directors’ statement on fair, balanced and understandable set out on page 192; • Board’s conﬁrmation that it has carried out a robust assessment of the emerging and princ ipal r isks set out on page 187; • The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on pages 187 to 188; and • The section describ ing the work of the aud it committee set out on pages 123 to 128. Responsib il it ies of d irectors As explained more fully in the directors’ responsib il it ies statement set out on page 192, the directors are responsible for the preparation of the ﬁnanc ial statements and for be ing satisf ied that they g ive a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of ﬁnanc ial statements that are free from material misstatement, whether due to fraud or error. In preparing the ﬁnanc ial statements, the d irectors are responsible for assessing the Group and Parent Company’s abil ity to cont inue as a going concern, disclos ing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liqu idate the Group or the Parent Company or to cease operations, or have no realist ic alternat ive but to do so. Auditor’s responsib il it ies for the aud it of the ﬁnancial statements Our objectives are to obta in reasonable assurance about whether the ﬁnancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opin ion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, ind iv idually or in the aggregate, they could reasonably be expected to inﬂuence the economic decis ions of users taken on the bas is of these ﬁnancial statements. Explanation as to what extent the audit was considered capable of detecting irregular it ies, includ ing fraud Irregularit ies, includ ing fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsib il it ies, outl ined above, to detect irregular it ies, includ ing fraud. The r isk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intent ional misrepresentat ions, or through collus ion. The extent to which our procedures are capable of detecting irregular it ies, includ ing fraud is detailed below. However, the primary responsib il ity for the prevention and detection of fraud rests with both those charged with governance of the entity and management. • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most sign iﬁcant are those that relate to the reporting framework (UK-adopted IAS and EU IFRS, the Companies Act 2006 and the UK Corporate Governance Code, the Financ ial Conduct Author ity (FCA) List ing Rules, the Ma in Board List ing Rules of the Hong Kong Stock Exchange), regulations and supervisory requirements of the Prudential Regulation Authority (PRA), FRC, FCA and other overseas regulatory requirements, includ ing but not lim ited to regulat ions in its major markets such as Mainland China, Hong Kong, India, Republic of Korea, Singapore, the United Arab Emirates, the United States of America, and the relevant tax compliance regulations in the jur isd ict ions in which the Group operates. In addit ion, we concluded that there are certain sign iﬁcant laws and regulat ions that may have an effect on the determinat ion of the amounts and disclosures in the ﬁnanc ial statements and those laws and regulations relating to regulatory capital and liqu id ity, conduct, ﬁnancial cr ime includ ing ant i-money laundering, sanctions and market abuse, recognis ing the ﬁnancial and regulated nature of the Group’s activ it ies. 286 Standard Chartered – Annual Report 2024 Financ ial statements Independent auditor’s report • We understood how the Group is complying with those frameworks by performing a combinat ion of inqu ir ies of senior management and those charged with governance as required by audit ing standards, rev iew of board and certain committee meeting minutes, gain ing an understanding of the Group’s approach to governance, inspect ion of regulatory correspondence in the year and engaging with internal and external legal counsel. We also engaged EY ﬁnancial cr ime and forensics special ists to perform procedures on areas relating to anti-money laundering, whistleblow ing, and sanct ions compliance. Through these procedures, we became aware of actual or suspected non-compliance. The ident iﬁed actual or suspected non-compliance was not sufﬁc iently s ign iﬁcant to our audit that would have resulted in it being ident iﬁed as a key audit matter. • We assessed the susceptib il ity of the Group’s ﬁnanc ial statements to material misstatement, includ ing how fraud might occur by consider ing the controls that the Group has established to address risks ident iﬁed by the ent ity, or that otherwise seek to prevent, deter or detect fraud. Our procedures to address the risks ident iﬁed also included incorporation of unpredictab il ity into the nature, tim ing and/or extent of our testing, challenging assumptions and judgements made by management in their sign iﬁcant accounting estimates and journal entry testing. • Based on this understanding, we designed our audit procedures to ident ify non-compl iance with such laws and regulations. Our procedures involved inqu ir ies of the Group’s internal and external legal counsel, money laundering reporting ofﬁcer, internal audit, certain senior management executives, and focused testing on a sample basis, includ ing journal entry testing. We also performed inspect ion of key correspondence from the relevant regulatory authorit ies as well as review of board and committee minutes. • For instances of actual or suspected non-compliance with laws and regulations, which have a material impact on the ﬁnancial statements, these were commun icated by management to the Group audit engagement team and component teams (where applicable) who performed audit procedures such as inqu ir ies with management, sending conﬁrmations to external legal counsel, substant ive testing and meeting with regulators. Where appropriate, we involved special ists from our ﬁrm to support the aud it team. • The Group is authorised to provide banking, insurance, mortgages and home ﬁnance, consumer credit, pensions, investments and other activ it ies. The Group operates in the banking industry which is a highly regulated environment. As such, the Senior Statutory Auditor considered the experience and expertise of the Group audit engagement team, the component teams and the shared service centre teams to ensure that the team had the appropriate competence and capabil it ies, which included the use of special ists where appropr iate. A further descript ion of our respons ib il it ies for the aud it of the ﬁnancial statements is located on the Financ ial Reporting Council’s website at https://www.frc.org.uk/ auditorsrespons ib il it ies. This descript ion forms part of our auditor’s report. Other matters we are required to address • Following the recommendation from the audit committee, we were re-appointed by the Company on 10 May 2024 to audit the ﬁnanc ial statements for the year end ing 31 December 2024 and subsequent ﬁnancial per iods. • The period of total uninterrupted engagement includ ing previous renewals and reappointments is ﬁve years, covering the years ending 31 December 2020 to 31 December 2024. • The audit opin ion is consistent with the addit ional report to the audit committee. Use of our report This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsib il ity to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opin ions we have formed. David Canning-Jones (Senior statutory auditor) for and on behalf of Ernst & Young LLP, Statutory Auditor London 21 February 2025 287 Standard Chartered – Annual Report 2024 Financ ial statements Notes 2024 $mill ion 2023 $mill ion Interest income 27,862 27,227 Interest expense (21,496) (19,458) Net interest income 3 6,366 7,769 Fees and commiss ion income 4,623 4,067 Fees and commiss ion expense (889) (815) Net fee and commiss ion income 4 3,734 3,252 Net trading income 5 9,615 6,292 Other operating income 6 (172) 706 Operating income 19,543 18,019 Staff costs (8,510) (8,256) Premises costs (401) (422) General admin istrat ive expenses (2,465) (1,802) Depreciat ion and amort isat ion (1,126) (1,071) Operating expenses 7 (12,502) (11,551) Operating proﬁt before impa irment losses and taxat ion 7,041 6,468 Credit impa irment 8 (547) (508) Goodwill, property, plant and equipment and other impa irment 9 (588) (1,008) Proﬁt from associates and jo int ventures 32 108 141 Proﬁt before taxation 6,014 5,093 Taxation 10 (1,972) (1,631) Proﬁt for the year 4,042 3,462 Proﬁt attributable to: Non-controlling interests 29 (8) (7) Parent company shareholders 4,050 3,469 Proﬁt for the year 4,042 3,462 cents cents Earnings per share: Basic earnings per ordinary share 12 141.3 108.6 Diluted earnings per ordinary share 12 137.7 106.2 The notes on pages 295 to 380 form an integral part of these ﬁnanc ial statements. Consolidated income statement For the year ended 31 December 2024 288 Standard Chartered – Annual Report 2024 Financ ial statements Financ ial statements Notes 2024 $mill ion 2023 $mill ion Proﬁt for the year 4,042 3,462 Other comprehensive income Items that will not be reclassif ied to income statement: (181) 239 Own credit (losses)/gains on ﬁnanc ial l iab il it ies des ignated at fair value through proﬁt or loss (426) 212 Equity instruments at fair value through other comprehensive income 71 181 Actuarial gains/(losses) on retirement beneﬁt obligat ions 30 52 (47) Revaluation Surplus 25 – Taxation relating to components of other comprehensive income/(loss) 10 97 (107) Items that may be reclassif ied subsequently to income statement: (389) 562 Exchange differences on translation of foreign operations: Net losses taken to equity (1,423) (734) Net gains on net investment hedges 14 678 215 Share of other comprehensive income/(loss) from associates and jo int ventures 32 9 (7) Debt instruments at fair value through other comprehensive income Net valuation gains taken to equity 283 383 Reclassif ied to income statement 6 237 115 Net impact of expected credit losses (35) (48) Cash ﬂow hedges: Net movements in cash ﬂow hedge reserve 14 (101) 767 Taxation relating to components of other comprehensive income 10 (37) (129) Other comprehensive (loss)/income for the year, net of taxation (570) 801 Total comprehensive income for the year 3,472 4,263 Total comprehensive income attributable to: Non-controlling interests 29 (22) (38) Parent company shareholders 3,494 4,301 Total comprehensive income for the year 3,472 4,263 Consolidated statement of comprehensive income For the year ended 31 December 2024 289 Standard Chartered – Annual Report 2024 Financ ial statements Notes 2024 $mill ion 2023 $mill ion Assets Cash and balances at central banks 13,35 63,447 69,905 Financ ial assets held at fa ir value through proﬁt or loss 13 177,517 147,222 Derivat ive ﬁnancial instruments 13,14 81,472 50,434 Loans and advances to banks 13,15 43,593 44,977 Loans and advances to customers 13,15 281,032 286,975 Investment securit ies 13 144,556 161,255 Other assets 20 43,468 47,594 Current tax assets 10 663 484 Prepayments and accrued income 3,207 3,033 Interests in associates and jo int ventures 32 1,020 966 Goodwill and intang ible assets 17 5,791 6,214 Property, plant and equipment 18 2,425 2,274 Deferred tax assets 10 414 702 Retirement beneﬁt schemes in surplus 30 151 – Assets classif ied as held for sale 21 932 809 Total assets 849,688 822,844 Liab il it ies Deposits by banks 13 25,400 28,030 Customer accounts 13 464,489 469,418 Repurchase agreements and other sim ilar secured borrow ing 13,16 12,132 12,258 Financ ial l iab il it ies held at fa ir value through proﬁt or loss 13 85,462 83,096 Derivat ive ﬁnancial instruments 13,14 82,064 56,061 Debt securit ies in issue 13,22 64,609 62,546 Other liab il it ies 23 44,681 39,221 Current tax liab il it ies 10 726 811 Accruals and deferred income 6,896 6,975 Subordinated liab il it ies and other borrowed funds 13,27 10,382 12,036 Deferred tax liab il it ies 10 567 770 Provis ions for l iab il it ies and charges 24 349 299 Retirement beneﬁt schemes in deﬁc it 30 266 183 Liab il it ies included in disposal groups held for sale 21 381 787 Total liab il it ies 798,404 772,491 Equity Share capital and share premium account 28 6,695 6,815 Other reserves 8,724 9,171 Retained earnings 28,969 28,459 Total parent company shareholders’ equity 44,388 44,445 Other equity instruments 28 6,502 5,512 Total equity excluding non-controlling interests 50,890 49,957 Non-controlling interests 29 394 396 Total equity 51,284 50,353 Total equity and liab il it ies 849,688 822,844 The notes on pages 295 to 380 form an integral part of these ﬁnanc ial statements. These ﬁnancial statements were approved by the Board of d irectors and authorised for issue on 21 February 2025 and signed on its behalf by: José Viñals Bill Winters Diego De Giorg i Group Chairman Group Chief Executive Group Chief Financ ial Ofﬁcer Consolidated balance sheet As at 31 December 2024 290 Standard Chartered – Annual Report 2024 Financ ial statements Financ ial statements Consolidated statement of changes in equity For the year ended 31 December 2024 Ordinary share capital and share premium account $mill ion Preference share capital and share premium account $mill ion Capital and merger reserves 1 $mill ion Own credit adjust- ment reserve $mill ion Fair value through other compre- hensive income reserve – debt $mill ion Fair value through other compre- hensive income reserve – equity $mill ion Cash- ﬂow hedge reserve $mill ion Trans- lation reserve $mill ion Retained earnings $mill ion Parent company share- holders’ equity $mill ion Other equity instru- ments $mill ion Non- controlling interests $mill ion Total $mill ion As at 01 January 2023 5,436 1,494 17,338 (63) (1,116) 206 (564) (7,636) 28,067 43,162 6,504 350 50,016 Proﬁt for the year – – – – – – – – 3,469 3,469 – (7) 3,462 Other comprehensive income/(loss) 12 – – – 163 426 124 655 (489) (47) 2 832 – (31) 801 Distr ibut ions – – – – – – – – – – – (26) (26) Redemption of other equity instruments – – – – – – – – – – (1,000) – (1,000) Treasury shares net movement – – – – – – – – (189) (189) – – (189) Share option expense, net of taxation – – – – – – – – 173 173 – – 173 Div idends on ord inary shares – – – – – – – – (568) (568) – – (568) Div idends on preference shares and AT1 securit ies – – – – – – – – (452) (452) – – (452) Share buyback 3,4 (115) – 115 – – – – – (2,000) (2,000) – – (2,000) Other movements – – – – – – – 12 5 6 18 8 5 110 6 136 As at 31 December 2023 5,321 1,494 17,453 100 (690) 330 91 (8,113) 28,459 44,445 5,512 396 50,353 Proﬁt for the year – – – – – – – – 4,050 4,050 – (8) 4,042 Other comprehensive (loss)/income 12 – – – (377) 442 (26) 10 (87) (735) 227 2,11 (556) – (14) (570) Distr ibut ions – – – – – – – – – – – (43) (43) Other equity instruments issued, net of expenses – – – – – – – – – – 1,568 13 – 1,568 Redemption of other equity instruments – – – – – – – – – – (553) 14 – (553) Treasury shares net movement – – – – – – – – (168) (168) – – (168) Share option expense, net of taxation – – – – – – – – 269 269 – – 269 Div idends on ord inary shares – – – – – – – – (780) (780) – – (780) Div idends on preference shares and AT1 securit ies – – – – – – – – (457) (457) – – (457) Share buyback 8,9 (120) – 120 – – – – – (2,500) (2,500) – – (2,500) Other movements – – – (1) 7 – – 210 5 (131) 7 85 (25) 14 63 6 123 As at 31 December 2024 5,201 1,494 17,573 (278) (241) 304 4 (8,638) 28,969 44,388 6,502 394 51,284 1 Includes capital reserve of $5 mill ion, cap ital redemption reserve of $457 mill ion and merger reserve of $17,111 m ill ion 2 Includes actuarial gain, net of taxation on Group deﬁned beneﬁt schemes 3 On 16 February 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $58 mill ion, and the total cons iderat ion pa id was $1,000 mill ion and the buyback completed on 29 September 2023. The total number of shares purchased was 116,710,492, representing 4.03 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 4 On 28 July 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 mill ion, and the total cons iderat ion pa id was $1,000 mill ion and the buyback completed on 6 November 2023. The total number of shares purchased was 112,982,802, representing 3.90 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 5 Movement related to Translation adjustment and AT1 Securit ies charges (2023). December 2024 movement includes realisat ion of translat ion adjustment loss from sale of SCB Zimbabwe Lim ited ($190 m ill ion), SCB Angola S.A. ($31 m ill ion), SCB S ierra Leone Lim ited ($25 m ill ion) transferred to other operat ing income 6 Movements primar ily from non-controll ing interest pertain ing to Mox Bank L im ited ($48 m ill ion), Trust Bank S ingapore Lim ited ($34 m ill ion) and Zod ia Custody Lim ited ($28 m ill ion) in 2023. Movements in 2024 are primar ily from non-controll ing interest pertain ing to Mox Bank L im ited ($14 m ill ion) and Trust Bank S ingapore Lim ited ($55 m ill ion) offset by SCB Angola S.A. ($6 m ill ion) 7 Mainly includes movements related to Ghana hyperinﬂat ion 8 On 23 February 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 mill ion, the total cons iderat ion pa id was $1,000 mill ion and the buyback completed on 25 June 2024. The total number of shares purchased was 113,266,516, representing 4.25 per cent of the ordinary shares in issue at the beginn ing of the programme. The nom inal value of the shares was transferred from the share capital to the capital redemption reserve account. 9 On 30 July 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $63 mill ion, as at December 2024 the buyback is ongoing, with the total number of shares purchased of 126,262,414 representing 4.95 per cent of the ordinary shares in issue at the beginn ing of the programme, the total cons iderat ion was $1,355 m ill ion, and a further $145 m ill ion relat ing to irrevocable obligat ion to buyback shares under the buyback programme has been recognised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account. 10 Includes $174 mill ion ga in on sale of equity investment transferred to retained earnings partly offset by $76 mill ion reversal of deferred tax l iab il ity and $72 mill ion mark-to-market gain on equity instrument 11 Includes $174 mill ion ga in on sale of equity investment in other comprehensive income reserve transferred to retained earnings partly offset by $13 mill ion cap ital gain tax 12 All the amounts are net of tax 13 Includes $993 mill ion and $575 m ill ion (SGD 750 m ill ion) ﬁxed rate resett ing perpetual subordinated contingent convertible AT1 securit ies issued by Standard Chartered PLC 14 Relates to redemption of AT1 securit ies of SGD 750 m ill ion ($553 m ill ion) and real ised translation loss ($25 mill ion) reported in other movements Note 28 includes a descript ion of each reserve. The notes on pages 295 to 380 form an integral part of these ﬁnanc ial statements. 291 Standard Chartered – Annual Report 2024 Financ ial statements Notes Group Company 2024 $mill ion 2023 $mill ion 2024 $mill ion 2023 $mill ion Cash ﬂows from operating activ it ies: Proﬁt before taxation 6,014 5,093 3,424 4,269 Adjustments for non-cash items and other adjustments included with in income statement 34 2,668 3,274 (1,670) (2,847) Change in operating assets 34 (66,431) (14,458) 682 (3,819) Change in operating liab il it ies 34 39,373 1,977 (864) 3,239 Contribut ions to deﬁned beneﬁt schemes 30 (68) (81) – – UK and overseas taxes paid 10 (2,045) (1,367) – – Net cash (used in)/from operating activ it ies (20,489) (5,562) 1,572 842 Cash ﬂows from invest ing act iv it ies: Internally generated capital ised software 17 (953) (1,124) – – Disposal of Internally generated Capital ised Software 17 5 – – – Purchase of property, plant and equipment 18 (456) (159) – – Disposal of property, plant and equipment 18 56 53 – – Disposal of held for sale property, plant and equipment 21 53 191 – – Acquis it ion of investment associates, and jo int ventures 32 (12) (47) – – Div idends rece ived from subsid iar ies, associates and joint ventures 32,34 36 11 4,101 4,738 Disposal of investment in subsid iar ies, associates, and joint ventures 1 74 3,603 – – Purchase of investment securit ies (217,448) (229,302) (1,287) (423) Disposal and maturity of investment securit ies 230,098 242,585 1,273 2,000 Net cash from invest ing act iv it ies 11,453 15,811 4,087 6,315 Cash ﬂows from ﬁnancing act iv it ies: Exercise of share options 33 26 33 26 Purchase of own shares (201) (215) (201) (215) Cancellation of shares includ ing share buyback (2,500) (2,000) (2,500) (2,000) Premises and equipment lease liab il ity princ ipal payment (205) (234) – – Issue of Addit ional T ier 1 Capital net of expenses 28 1,568 – 1,568 – Redemption of Tier 1 Capital 28 (553) (1,000) (553) (1,000) Gross proceeds from issue of subordinated liab il it ies 34 – 18 – – Interest paid on subordinated liab il it ies 34 (519) (563) (505) (545) Repayment of subordinated liab il it ies 34 (1,517) (2,160) (1,517) (2,160) Proceeds from issue of senior debts 34 11,044 15,261 3,887 5,105 Repayment of senior debts 34 (11,185) (6,471) (2,619) (2,037) Interest paid on senior debts 34 (1,366) (1,145) (708) (434) Net cash inﬂow from Non-controlling interest 29 55 116 – – Distr ibut ions and div idends pa id to non-controlling interests, preference shareholders and AT1 securit ies (500) (478) (457) (452) Div idends pa id to ordinary shareholders (780) (568) (780) (568) Net cash (used in)/from ﬁnanc ing act iv it ies (6,626) 587 (4,352) (4,280) Net (decrease)/increase in cash and cash equivalents (15,662) 10,836 1,307 2,877 Cash and cash equivalents at beginn ing of the year 107,635 97,595 10,294 7,417 Effect of exchange rate movements on cash and cash equivalents (2,045) (796) – – Cash and cash equivalents at end of the year 35 89,928 107,635 11,601 10,294 1 2024 balance includes disposal of SCB Zimbabwe Lim ited ($24 m ill ion), SCB Angola S.A. ($10 m ill ion), SCB S ierra Leone Lim ited ($17 m ill ion), Shoal l im ited ($17 mill ion) and Autumn l ife Pte. Ltd ($6 mill ion). 2023 balance includes disposal of aviat ion ﬁnance leas ing business ($3,570 mill ion), sale of Metaco SA ($14 mill ion), Cardspal Pte. Ltd. ($12 m ill ion) and Kozag i ($7 mill ion). Interest received was $28,224 mill ion (31 December 2023: $27,136 m ill ion), interest paid was $21,776 mill ion (31 December 2023: $18,379 mill ion). Cash ﬂow statement For the year ended 31 December 2024 292 Standard Chartered – Annual Report 2024 Financ ial statements Financ ial statements Company balance sheet For the year ended 31 December 2024 Notes 2024 $mill ion 2023 $mill ion Non-current assets Investments in subsid iary undertak ings 32 61,593 60,791 Current assets Derivat ive ﬁnancial instruments 39 112 80 Financ ial assets held at fa ir value through proﬁt or loss 39 19,049 19,425 Investment securit ies 39 5,808 6,944 Amounts owed by subsid iary undertak ings 39 11,601 10,294 Total current assets 36,570 36,743 Current liab il it ies Derivat ive ﬁnancial instruments 39 1,065 1,104 Amounts owed to subsid iary undertak ings 39 35 - Financ ial l iab il it ies held at fa ir value through proﬁt or loss 39 16,852 16,704 Other creditors 959 650 Total current liab il it ies 18,911 18,458 Net current assets 17,659 18,285 Total assets less current liab il it ies 79,252 79,076 Non-current liab il it ies Debt securit ies in issue 39 18,167 17,142 Subordinated liab il it ies and other borrowed funds 39 7,661 9,248 Total non-current liab il it ies 25,828 26,390 Total assets less liab il it ies 53,424 52,686 Equity Share capital and share premium account 28 6,695 6,815 Other reserves 17,538 17,409 Retained earnings 22,691 22,952 Total shareholders’ equity 46,924 47,176 Other equity instruments 28 6,500 5,510 Total equity 53,424 52,686 The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its ind iv idual statement of comprehensive income and related notes that form a part of these ﬁnanc ial statements. The Company proﬁt for the period after tax is $3,408 mill ion (31 December 2023: $4,205 m ill ion). The notes on pages 295 to 380 form an integral part of these ﬁnanc ial statements. These ﬁnancial statements were approved by the Board of d irectors and authorised for issue on 21 February 2025 and signed on its behalf by: José Viñals Bill Winters Diego De Giorg i Group Chairman Group Chief Executive Group Chief Financ ial Ofﬁcer 293 Standard Chartered – Annual Report 2024 Financ ial statements Share capital and share premium account $mill ion Capital and merger reserve 1 $mill ion Own credit adjustment reserve $mill ion Cash ﬂow hedge reserve $mill ion Retained earnings $mill ion Other equity instruments $mill ion Total $mill ion As at 1 January 2023 6,930 17,338 (19) (48) 21,791 6,502 52,494 Proﬁt for the year 2 – – – – 4,205 – 4,205 Other comprehensive income 8 – – 11 12 – – 23 Treasury shares net movement – – – – (189) – (189) Share option expenses – – – – 170 – 170 Div idends on ord inary shares – – – – (568) – (568) Div idends on preference share and AT1 secur it ies – – – – (452) – (452) Redemption of other equity instruments – – – – – (1,000) (1,000) Share buyback 3,4 (115) 115 – – (2,000) – (2,000) Other Movements 5 – – – – (5) 8 3 As at 31 December 2023 6,815 17,453 (8) (36) 22,952 5,510 52,686 Proﬁt for the year 2 – – – – 3,408 – 3,408 Other comprehensive (loss)/income 8 – – (11) 20 – – 9 Other equity instruments issued, net of expenses – – – – – 1,568 1,568 Treasury shares net movement – – – – (168) – (168) Share option expenses – – – – 250 – 250 Div idends on ord inary shares – – – – (780) – (780) Div idends on preference share and AT1 secur it ies – – – – (457) – (457) Redemption of other equity instruments – – – – – (553) (553) Share buyback 6,7 (120) 120 – – (2,500) – (2,500) Other Movements 5 – – – – (14) (25) (39) As at 31 December 2024 6,695 17,573 (19) (16) 22,691 6,500 53,424 1 Includes capital reserve of $5 mill ion, cap ital redemption reserve of $457 mill ion and merger reserve of $17,111 m ill ion 2 Includes div idend rece ived of $2,395 mill ion (2023: $2,789 m ill ion) from Standard Chartered Hold ing Lim ited 3 On 16 February 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $58 mill ion, and the total cons iderat ion pa id was $1,000 mill ion and the buyback completed on 29 September 2023. The total number of shares purchased was 116,710,492, representing 4.03 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 4 On 28 July 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 mill ion, and the total cons iderat ion pa id was $1,000 mill ion and the buyback completed on 6 November 2023. The total number of shares purchased was 112,982,802, representing 3.90 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 5 Movement mainly related to Translation adjustment and AT1 Securit ies charges 6 On 23 February 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 mill ion, the total cons iderat ion pa id was $1,000 mill ion, and the buyback completed on 25 June 2024. The total number of shares purchased was 113,266,516, representing 4.25 per cent of the ordinary shares in issue at the beginn ing of the programme. The nom inal value of the shares was transferred from the share capital to the capital redemption reserve account 7 On 30 July 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $63 mill ion, as at December 2024 the buyback is ongoing, with the total number of shares purchased of 126,262,414 representing 4.95 per cent of the ordinary shares in issue at the beginn ing of the programme, the total cons iderat ion was $1,355 m ill ion, and a further $145 m ill ion relat ing to irrevocable obligat ion to buy back shares under the buyback programme has been recognised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 8 All the amounts are net of tax Note 28 includes a descript ion of each reserve. The notes on pages 295 to 380 form an integral part of these ﬁnanc ial statements. Company statement of changes in equity For the year ended 31 December 2024 294 Standard Chartered – Annual Report 2024 Financ ial statements Notes to the ﬁnancial statements Contents – Notes to the ﬁnancial statements Section Note Page Basis of preparation 1 Accounting polic ies 295 Performance/return 2 Segmental informat ion 298 3 Net interest income 300 4 Net fees and commiss ion 301 5 Net trading income 302 6 Other operating income 303 7 Operating expenses 303 8 Credit impa irment 304 9 Goodwill, property, plant and equipment and other impa irment 308 10 Taxation 308 11 Div idends 311 12 Earnings per ordinary share 312 Assets and liab il it ies held at fa ir value 13 Financ ial instruments 313 14 Derivat ive ﬁnancial instruments 331 Financ ial instruments held at amortised cost 15 Loans and advances to banks and customers 337 16 Reverse repurchase and repurchase agreements includ ing other sim ilar lend ing and borrowing 337 Other assets and investments 17 Goodwill and intang ible assets 339 18 Property, plant and equipment 341 19 Leased assets 343 20 Other assets 343 21 Assets held for sale and associated liab il it ies 344 Funding, accruals, provis ions, cont ingent liab il it ies and legal proceed ings 22 Debt securit ies in issue 345 23 Other liab il it ies 345 24 Provis ions for l iab il it ies and charges 346 25 Contingent liab il it ies and comm itments 346 26 Legal and regulatory matters 347 Capital instruments, equity and reserves 27 Subordinated liab il it ies and other borrowed funds 348 28 Share capital, other equity instruments and reserves 348 29 Non-controlling interests 352 Employee beneﬁts 30 Retirement beneﬁt obligat ions 352 31 Share-based payments 356 Scope of consolidat ion 32 Investments in subsid iary undertak ings, jo int ventures and assoc iates 361 33 Structured entit ies 366 Cash ﬂow statement 34 Cash ﬂow statement 367 35 Cash and cash equivalents 368 Other disclosure matters 36 Related party transactions 369 37 Post balance sheet events 370 38 Auditor’s remuneration 370 39 Standard Chartered PLC (Company) 371 40 Related undertakings of the Group 374 Notes to the ﬁnancial statements Standard Chartered – Annual Report 2024 295 Financ ial statements 1. Accounting polic ies Statement of compliance The Group ﬁnancial statements consol idate Standard Chartered PLC (the Company) and its subsid iar ies (together referred to as the Group) and equity account the Group’s interests in associates and jo intly controlled ent it ies. The parent company ﬁnancial statements present informat ion about the Company as a separate ent ity. The Group ﬁnancial statements have been prepared in accordance with UK-adopted internat ional account ing standards and International Financ ial Report ing Standards (IFRS) (Accounting Standards) as adopted by the European Union (EU IFRS). The Company ﬁnanc ial statements have been prepared in accordance with UK-adopted internat ional account ing standards as applied in conformity with section 408 of the Companies Act 2006. The ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 2006. There are no sign iﬁcant d ifferences between UK-adopted internat ional account ing standards and EU IFRS. The following parts of the Risk review and Capital review form part of these ﬁnancial statements: a) Risk review: Disclosures marked as ‘audited’ from the start of the Credit Risk section (page 207) to the end of Other princ ipal r isks in the same section (page 255). b) Capital review: Tables marked as ‘audited’ from the start of ‘CRD Capital base’ to the end of ‘Movement in total capital’, excluding ‘Total risk-weighted assets’ (pages 271 to 272). Basis of preparation The consolidated and Company ﬁnanc ial statements have been prepared on a going concern basis and under the histor ical cost convent ion, as modif ied by the revaluat ion of cash-settled share-based payments, fair value through other comprehensive income, and ﬁnanc ial assets and liab il it ies ( includ ing der ivat ives) at fa ir value through proﬁt or loss. The consolidated ﬁnanc ial statements are presented in United States dollars ($), being the presentation currency of the Group and functional currency of the Company, and all values are rounded to the nearest mill ion dollars, except when otherwise ind icated. Sign iﬁcant and other account ing estimates and judgement In determin ing the carry ing amounts of certain assets and liab il it ies, the Group makes assumpt ions of the effects of uncertain future events on those assets and liab il it ies at the balance sheet date. The Group’s estimates and assumptions are based on histor ical exper ience and expectation of future events and are reviewed period ically. Further informat ion about key assumpt ions concerning the future, and other key sources of estimat ion uncerta inty and judgement, are set out in the relevant disclosure notes for the areas set out under the relevant headings below: Sign iﬁcant account ing estimates and crit ical judgements • Expected credit loss calculations (Note 8) • Financ ial instruments measured at fair value (Note 13) • Investments in subsid iary undertak ings, jo int ventures and associates – China Bohai associate accounting and impa irment analys is (Note 32) Sign iﬁcant account ing estimates and judgements represent those items which have a sign iﬁcant r isk of causing a material adjustment to the carrying amounts of assets and liab il it ies w ith in the next year. S ign iﬁcant accounting estimates and judgements are: Other areas of accounting estimate and judgement Other areas of accounting estimate and judgement do not meet the deﬁnit ion under IAS 1 of sign iﬁcant account ing estimates or crit ical account ing judgements, but the recognit ion of certa in material assets and liab il it ies are based on assumptions and/or are subject to long-term uncertaint ies. The other areas of account ing estimate and judgement are: • Taxation (Note 10) • Goodwill and intang ible assets - Goodw ill impa irment and Capital isat ion of internally generated software intang ibles (Note 9 and Note 17) • Provis ions for l iab il it ies and charges – Other prov is ions (Note 24) • Legal and regulatory matters (Note 26) • Retirement beneﬁt obligat ions (Note 30) • Share-based payments (Note 31) Climate change impact on the Group’s balance sheet Climate, and the impact of climate on the Group’s balance sheet is considered as an area which can impact accounting estimates and judgments through the uncertainty of future events and the impact of that uncertainty on the Group’s assets and liab il it ies. However, the Group has concluded that Climate Change does not have a ﬁnancially mater ial impact at this time. The Group has assessed the impact of climate risk on the ﬁnancial report. Th is is set out with in the Susta inab il ity Overview and Sustainab il ity Review chapter which incorporate the Group’s Climate-related Financ ial Disclosures which align with the recommendations from the Task Force for Climate related Financ ial D isclosures (TCFD). Further risk disclosure has been provided in the Princ ipal R isks and Uncertaint ies sect ion of the Annual Report where the Group has described how it manages climate risk, which is integrated across relevant Princ ipal Risk Types (PRTs) and is managed via the ESGR Risk Type framework. The areas of impact where judgements and the use of estimates have been applied were credit risk and the impact on lending portfolios; ESG features with in issued loans and bonds; physical risk on our mortgage lending portfolio; and the corporate plan, in respect of which forward looking cash ﬂows impact the recoverabil ity of certain assets, includ ing of goodw ill, deferred tax assets and investments in subsid iary undertak ings. 1. Accounting polic ies continued Financ ial statements Notes to the ﬁnancial statements 296 Standard Chartered – Annual Report 2024 Transit ion r isk, as our clients move to lower carbon emitt ing revenues, (either by virtue of legislat ion or chang ing end customer preference) is considered with reference to client transit ion pathways and man ifests over a longer term than the maturity of the loan book (up to 2050). The setting of net zero targets, which as of this annual report covers our 12 highest emitt ing sectors, manages trans it ion r isk. Net zero targets enable the portfolio managers to work with our clients on their transit ion and deploy cap ital to those clients which are engaged and have adequate transit ion pathways. All of these act ions manage the Group’s transit ion r isk and engage clients before transit ion risk manifests itself into credit losses. We have also evaluated transit ion r isk to achieve net zero in our own operations. While physical risk is included with in the majority of our mortgage lending decis ions, we have appl ied scenario analysis against the pathways of different temperature outcomes to examine exposure concentration risk in key markets subject to the extreme risk of ﬂoods and storms to assess the acute physical risk, and sea level rise to assess the chronic physical risk. Stranded assets analysis was conducted for resident ial mortgages to ident ify propert ies that are expected to become uninhab itable and/or unusable due to increased frequency and intens ity of physical risk events from acute and chronic risks. We assess the physical risk vulnerabil it ies of our exist ing s ites on a regular basis and for new sites during the onboarding process. Addit ionally, we assess the impact of climate risk on the classif icat ion of ﬁnanc ial instruments under IFRS 9, when Environmental, Social or Governance (ESG) triggers may affect the cash ﬂows received by the Group under the contractual terms of the instrument. The ESGR Risk team has performed a quantitat ive assessment of the impact of climate risk on the IFRS 9 ECL provis ion. Th is assessment has been performed across both the CIB and WRB portfolios. The Climate risk impact assessment on IFRS 9 business as usual ECL has been conducted based on newly developed and enhanced internal climate risk models for corporates across six prior ity sectors (O il and Gas, Power, Steel, Min ing, Sh ipp ing, and Automotive), one Generic model for the remain ing corporate sectors and Sovereigns, while the top-down approach developed in 2022 was used for the remain ing portfolios. The impact assessment, which primar ily focused on transit ion r isk, resulted in only a marginal ECL increase across CIB and WRB, which has been recorded as a management overlay for the 2024 year end. The Group’s corporate plan has a 5 year outlook and considers the highest emitt ing sectors the Group ﬁnances. The majority of the Group sector targets are product ion/ physical intens it ies which allow continued levels of lending as long as the products the client produce have a decreasing carbon cost. For Coal Min ing and O il and Gas, these sectors have absolute targets which represent a decreasing carbon budget. Coal Min ing is an immater ial book, while for Oil and Gas lending is being actively monitored towards lower carbon counterparties and technologies. The corporate plan is shorter term than many of the climate scenario outlooks but seeks to capture the nearer term performance as required by recoverabil ity models. The Group has for the third time in the 2025 corporate plan included antic ipated cred it impa irment charges, now across seven sectors (Oil and Gas, Metals and Min ing, Power, and Transport, along w ith Cement, Automobile, and Commercial Real Estate which have been newly added this year). This addit ion of cred it impa irment has not in itself, materially impacted the recoverabil ity of assets supported by discounted cash ﬂow models (such as Value in Use) which util ise the Corporate plan. The Group has progressively strengthened its scenario analysis capabil it ies with the modelling of Climate Risk impact over a 30-year period across multiple dimens ions includ ing scenar io data and pathways across CIB and WRB portfolios. While we have taken the ﬁrst step in our journey to transit ion from our rel iance on vendor models to in-house capabil it ies, challenges underpin the scenario analysis, such as reliance on nascent methodologies, dependencies on ﬁrst generation models and data lim itat ions. Notwithstand ing these challenges, our work to date, using certain assumptions and proxies, ind icates that our business is resil ient to all Network of Central Banks and Supervisors for Greening the Financ ial System (NGFS) and bespoke scenarios that were explored. The Group, although acknowledging the lim itat ions of current data available, increas ing soph ist icat ion of models evolving and nascent nature of climate impacts on internal and client assets, considers Climate Risk to have lim ited quantitat ive impact in the immed iate term and as a longer-term risk is expected to be addressed through its business strategy and ﬁnanc ial plann ing as the Group implements its net zero journey. IFRS and Hong Kong accounting requirements As required by the Hong Kong List ing Rules, an explanation of the differences in accounting practices between UK-adopted IFRS and Hong Kong Financ ial Reporting Standards is required to be disclosed. There would be no sign iﬁcant d ifferences had these accounts been prepared in accordance with Hong Kong Financ ial Reporting Standards. Standard Chartered PLC has fully complied with the new treasury share regime introduced under the revised Hong Kong List ing Rules from 11 June 2024 onwards and will continue to comply with the new regime. 1. Accounting polic ies continued Financ ial statements Standard Chartered – Annual Report 2024 297 New accounting standards in issue but not yet effective There were no new accounting standards or interpretat ions that had a material effect on the Group’s Financ ial Statements in 2024. IAS 21 Amendment – Lack of Exchangeabil ity In August 2023, the IASB issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates to specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeabil ity is lacking. The amendments also require disclosure of informat ion that enables users to understand the impact of a currency not being exchangeable. The amendments will be effective for annual reporting periods beginn ing on or after 1 January 2025. The amendment is not expected to have a material impact on the Group’s ﬁnancial statements. IFRS 18 Presentation and Disclosure in Financ ial Statements The new standard IFRS 18 was issued in April 2024 and is effective for annual reporting periods beginn ing on or after January 1, 2027 but earlier applicat ion is permitted. This new standard replaces IAS 1 Presentation of Financ ial Statements and amends IAS 7 Statement of Cash Flows. IFRS 18 introduces three deﬁned categories for income and expenses—operating, invest ing and ﬁnancing—to improve the structure of the income statement, and requires all companies to provide new deﬁned subtotals, includ ing operating proﬁt. IFRS 18 will require disclosure of explanations of company-specif ic measures that are related to the income statement, referred to as management- deﬁned performance measures. IFRS 18 sets out enhanced guidance on how to organise informat ion and whether to provide it in the primary ﬁnanc ial statements or in the notes. The Group will apply IFRS 18 for annual reporting periods beginn ing on January 1, 2027 and is currently not expected to have a material impact on the Group’s ﬁnanc ial statements other than a change in the presentation of the primary statements. IFRS 9 Financ ial Instruments and IFRS 7 F inanc ial Instruments: Disclosures Amendments In May 2024, the IASB issued Amendments to the Classif icat ion and Measurement of Financ ial Instruments which amended requirements related to settling ﬁnanc ial liab il it ies us ing an electronic payment system and assessing contractual cash ﬂow characterist ics of ﬁnancial assets, includ ing those w ith environmental, social and governance (ESG)-linked features. The IASB also amended disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income and added disclosure requirements for ﬁnanc ial instruments with contingent features that do not relate directly to basic lending risks and costs. The amendments will be effective for annual reporting periods beginn ing on or after 1 January 2026. The amendments are not expected to have a material impact on the Group’s ﬁnanc ial statements. Going concern These ﬁnancial statements were approved by the Board of directors on 21 February 2025. The directors have made an assessment of the Group’s abil ity to cont inue as a going concern. This assessment has been made having considered the current macroeconomic and geopolit ical headwinds, includ ing: • Review of the Group Strategy and Corporate Plan, includ ing the annual budget • An assessment of the actual performance to date, loan book quality, credit impa irment, legal and regulatory matters, compliance matters, recent regulatory developments • Considerat ion of stress test ing performed, includ ing the Group Recovery Plan (RP) which include the applicat ion of stressed scenarios. Under the tests and through the range of scenarios, the results of these exercises and the RP demonstrate that the Group has sufﬁcient cap ital and liqu id ity to continue as a going concern and meet min imum regulatory cap ital and liqu id ity requirements • Analysis of the capital posit ion of the Group, includ ing the capital and leverage ratios, and ICAAP which summarises the Group’s capital and risk assessment processes, assesses its capital requirements and the adequacy of resources to meet them • Analysis of the funding and liqu id ity posit ion of the Group, includ ing the Internal L iqu id ity Adequacy Assessment Process (ILAAP), which considers the Group’s liqu id ity posit ion, its framework and whether sufﬁc ient l iqu id ity resources are being mainta ined to meet l iab il it ies as they fall due, was also reviewed. Further, funding and liqu id ity was considered in the context of the risk appetite metrics, includ ing the LCR rat io • The level of debt in issue, includ ing redempt ions and issuances during the year, debt falling due for repayment in the next 12 months and further planned debt issuances, includ ing the appet ite in the market for the Group’s debt • The Group’s portfolio of debt securit ies held at amortised cost • A detailed review of all princ ipal r isks as well as topical and emerging risks Based on the analysis performed, the directors conﬁrm they are satisf ied that the Group has adequate resources to continue in business for a period of at least 12 months from 21 February 2025. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the ﬁnancial statements. Financ ial statements Notes to the ﬁnancial statements 298 Standard Chartered – Annual Report 2024 2. Segmental informat ion Basis of preparation The analysis reﬂects how the client segments and geographic regions are managed internally. This is described as the Management View (on an underlying basis) and is princ ipally the locat ion from which a client relationsh ip is managed, which may differ from where it is ﬁnanc ially booked and may be shared between bus inesses and/or regions. In certain instances this approach is not appropriate and a Financ ial V iew is disclosed, that is, the location in which the transaction or balance was booked. Typically, the Financ ial V iew is used in areas such as the Market and Liqu id ity Risk reviews where actual booking location is more important for an assessment. Segmental informat ion is therefore on a Management View unless otherwise stated. Client segments The Group’s segmental reporting is in accordance with IFRS 8 Operating Segments and is reported consistently with the internal performance framework and as presented to the Group’s Management Team. Restructuring items excluded from underlying results The Group’s reported IFRS performance is adjusted for certain items to arrive at alternative performance measures. These items include proﬁts or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent and/or exceptional transactions that are sign iﬁcant or mater ial in the context of the Group’s normal business earnings for the period and items which management and investors would ordinar ily ident ify separately when assess ing consistent performance period by period. The alternative performance measures are not with in the scope of IFRS and not a substitute for IFRS measures. These adjustments are set out below. Restructuring loss of $441 mill ion pr imar ily relate to the ex its in AME, Aviat ion ﬁnance bus iness and reﬂect the impact of actions to transform the organisat ion to improve productiv ity, pr imar ily add it ional redundancy charges, s impl ify ing technology platforms and optim is ing the Group’s ofﬁce space and property footprint, Fit For Growth costs that are primar ily severance costs, costs of staff working on FFG in it iat ives and legal and profess ional fees. The Group is also reclassify ing the movements in the Debit Valuation Adjustment (DVA) into restructuring and other items. Reconcil iat ions between underlying and reported results are set out in the tables below: 2024 Net (loss)/ Gain on businesses disposed of/ Goodwill Underlying Restructuring³ held for sale 1 impa irment ⁴ Other items 2 DVA Reported $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Operating income 19,696 103 (232) – – (24) 19,543 Operating expenses (11,790) (612) – – (100) – (12,502) Operating proﬁt/(loss) before impa irment losses and taxat ion 7,906 (509) (232) – (100) (24) 7,041 Credit impa irment (557) 10 – – – – (547) Other impa irment (588) – – – – – (588) Proﬁt from associates and jo int ventures 50 58 – – – – 108 Proﬁt/(loss) before taxation 6,811 (441) (232) – (100) (24) 6,014 2023 Operating income 17,378 362 262 – – 17 18,019 Operating expenses (11,136) (415) – – – – (11,551) Operating proﬁt/(loss) before impa irment losses and taxat ion 6,242 (53) 262 – – 17 6,468 Credit impa irment (528) 20 – – – – (508) Other impa irment (130) (28) – (850) – – (1,008) Proﬁt from associates and jo int ventures 94 47 – – – – 141 Proﬁt/(loss) before taxation 5,678 (14) 262 (850) – 17 5,093 1 Net loss on businesses disposed of/ held for sale 2024 includes $172 mill ion pr imar ily relat ing to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe, $26 mill ion loss on sale of Angola, $19 m ill ion loss on S ierra Leone Partial exit and $15 mill ion loss on the Av iat ion bus iness disposal 2 Other items 2024 include $100 mill ion charge relat ing to Korea equity linked securit ies (ELS) portfol io 3 Restructuring Operating expenses 2024 includes $156m of Fit For Growth costs that are primar ily severance costs, costs of staff work ing on FFG in it iat ives and legal and professional fees 4 Goodwill and other impa irment include $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) 2. Segmental informat ion continued Financ ial statements Standard Chartered – Annual Report 2024 299 Underlying performance by client segment 2024 2023 Corporate & Wealth & Central & Corporate & Wealth & Central & Investment Retail other Investment Retail other Banking Banking Ventures items Total Banking Banking Ventures items Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Operating income 11,818 7,816 183 (121) 19,696 11,218 7,106 156 (1,102) 17,378 External 10,363 3,328 184 5,821 19,696 8,543 3,902 157 4,776 17,378 Inter-segment 1,455 4,488 (1) (5,942) – 2,675 3,204 (1) (5,878) – Operating expenses (6,033) (4,589) (464) (704) (11,790) (5,627) (4,261) (429) (819) (11,136) Operating proﬁt/(loss) before irment losses and taxat impa ion 5,785 3,227 (281) (825) 7,906 5,591 2,845 (273) (1,921) 6,242 Credit impa irment 106 (644) (74) 55 (557) (123) (354) (85) 34 (528) Other impa irment (310) (120) (18) (140) (588) (32) (4) (26) (68) (130) Proﬁt from associates and joint ventures – – (17) 67 50 – – (24) 118 94 Underlying proﬁt/(loss) before taxation 5,581 2,463 (390) (843) 6,811 5,436 2,487 (408) (1,837) 5,678 Restructuring (179) (170) (3) (89) (441) 32 (60) (4) 18 (14) Goodwill and other impa irment⁴ – – – – – – – – (850) (850) DVA (24) – – – (24) 17 – – – 17 Other items³ – (100) – (232) (332) 262 – – – 262 Reported proﬁt/(loss) before taxation 5,378 2,193 (393) (1,164) 6,014 5,747 2,427 (412) (2,669) 5,093 Total assets 485,662 122,404 6,399 235,223 849,688 403,058 128,768 4,009 287,009 822,844 Of which: loans and advances to customers 197,608 119,242 1,388 21,319 339,557 189,395 126,117 1,035 28,939 345,486 loans and advances to customers 139,089 119,236 1,388 21,319 281,032 130,897 126,104 1,035 28,939 286,975 loans held at fair value through proﬁt or loss (FVTPL) 1 58,519 6 – – 58,525 58,498 13 – – 58,511 Total liab il it ies 476,502 220,501 5,277 96,124 798,404 464,968 200,263 3,096 104,164 772,491 Of which: customer accounts 2 297,005 216,476 5,028 4,754 523,263 328,211 195,678 2,825 7,908 534,622 1 Loans held at FVTPL includes $51,441 mill ion (2023: $51,299 m ill ion) of reverse repurchase agreements 2 Customer accounts includes $21,772 mill ion (2023: $17,248 m ill ion) of FVTPL and $37,002 m ill ion (2023: $47,956 m ill ion) of repurchase agreements 3 Other items 2024 includes $100 mill ion charge relat ing to Korea equity linked securit ies (ELS) portfol io, $172 mill ion pr imar ily relat ing to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe, $26 mill ion loss on sale of Angola, $19 m ill ion loss on S ierra Leone Partial exit and $15 mill ion loss on the Aviat ion bus iness disposal 4 Goodwill and other impa irment include $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) Operating income by client segment 2024 2023 Corporate & Wealth & Central & Corporate & Wealth & Central & Investment Retail other Investment Retail other Banking Banking Ventures items Total Banking Banking Ventures items Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Underlying versus reported: Underlying operating income 11,818 7,816 183 (121) 19,696 11,218 7,106 156 (1,102) 17,378 Restructuring 69 23 – 11 103 291 45 – 26 362 DVA (24) – – – (24) 17 – – – 17 Other items 1 – – – (232) (232) 262 – – – 262 Reported operating income 11,863 7,839 183 (342) 19,543 11,788 7,151 156 (1,076) 18,019 Addit ional segmental income: Net interest income 2,090 5,175 100 (999) 6,366 4,541 4,970 81 (1,823) 7,769 Net fees and commiss ion income 1,938 1,855 52 (111) 3,734 1,753 1,538 43 (82) 3,252 Net trading and other income 7,835 809 31 768 9,443 5,494 643 32 829 6,998 Reported operating income 11,863 7,839 183 (342) 19,543 11,788 7,151 156 (1,076) 18,019 1 Other items 2024 includes $172 mill ion pr imar ily relat ing to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe, $26 mill ion loss on sale of Angola, $19 mill ion loss on S ierra Leone Partial exit and $15 mill ion loss on the Av iat ion bus iness disposal 2. Segmental informat ion continued Financ ial statements Notes to the ﬁnancial statements 300 Standard Chartered – Annual Report 2024 Addit ional segmental informat ion (reported) 2024 Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Net interest income 790 723 410 177 462 646 369 (1,002) 540 3,251 6,366 Net fees and commiss ion income 726 185 181 212 716 236 99 112 480 787 3,734 Net trading and other income 3,281 177 736 188 1,395 441 369 1,168 268 1,420 9,443 Operating income 4,797 1,085 1,327 577 2,573 1,323 837 278 1,288 5,458 19,543 2023 Net interest income 1,946 684 520 154 937 654 390 (930) 170 3,244 7,769 Net fees and commiss ion income 615 171 149 182 576 221 81 18 441 798 3,252 Net trading and other income 2,052 216 487 214 929 330 330 1,277 263 900 6,998 Operating income 4,613 1,071 1,156 550 2,442 1,205 801 365 874 4,942 18,019 3. Net interest income Accounting policy Interest income for ﬁnanc ial assets held at e ither fair value through other comprehensive income or amortised cost, and interest expense on all ﬁnanc ial l iab il it ies held at amort ised cost is recognised in proﬁt or loss using the effective interest method. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the ﬁnanc ial instrument or, when appropriate, a shorter period, to the net carrying amount of the ﬁnanc ial asset or ﬁnancial l iab il ity. When calculating the effective interest rate, the Group estimates cash ﬂows consider ing all contractual terms of the ﬁnancial instrument (for example prepayment options) but does not consider future credit losses. The calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. For ﬂoating-rate ﬁnanc ial instruments, period ic re-estimat ion of cash ﬂows that reﬂect the movements in the market rates of interest alters the effective interest rate. Where the estimates of cash ﬂows have been revised, the carrying amount of the ﬁnanc ial asset or l iab il ity is adjusted to reﬂect the actual and revised cash ﬂows, discounted at the instruments orig inal effect ive interest rate. The adjustment is recognised as interest income or expense in the period in which the revis ion is made as long as the change in estimates is not due to credit issues. Interest income for ﬁnanc ial assets that are e ither held at fair value through other comprehensive income or amortised cost that have become credit-impa ired subsequent to in it ial recognit ion (stage 3) and have had amounts wr itten off, is recognised using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective interest rate except that expected credit losses are included in the expected cash ﬂows. Interest income is therefore recognised on the amortised cost of the ﬁnanc ial asset includ ing expected cred it losses. Should the credit risk on a stage 3 ﬁnancial asset improve such that the ﬁnanc ial asset is no longer considered credit-impa ired, interest income recognit ion reverts to a computat ion based on the rehabil itated gross carry ing value of the ﬁnanc ial asset. 2024 2023 $mill ion $mill ion Balances at central banks 2,520 2,833 Loans and advances to banks 2,368 2,095 Loans and advances to customers 16,179 15,518 Debt securit ies 5,165 5,005 Other elig ible b ills 1,495 1,596 Accrued on impa ired assets (d iscount unwind) 135 180 Interest income 27,862 27,227 Of which: ﬁnanc ial instruments held at fair value through other comprehensive income 3,773 3,445 Deposits by banks 806 796 Customer accounts 1 16,276 14,292 Debt securit ies in issue 3,610 3,367 Subordinated liab il it ies and other borrowed funds 744 951 Interest expense on IFRS 16 lease liab il it ies 60 52 Interest expense 21,496 19,458 Net interest income 6,366 7,769 1 Deposit insurance premiums of $147 mill ion have been reclass if ied from customer accounts related interest expense to general operating expenses in 2024. The prior year has not been reclassif ied as it is not deemed material Financ ial statements Standard Chartered – Annual Report 2024 301 4. Net fees and commiss ion Accounting policy The Group can act as trustee or in other Fiduc iary capac it ies that result in the holding or placing of assets on behalf of ind iv iduals, trusts, retirement beneﬁt plans and other inst itut ions. The assets and income aris ing thereon are excluded from these ﬁnancial statements, as they are not assets and income of the Group. The Group applies the following practical expedients: • informat ion on amounts of transact ion price allocated to unsatisf ied (or part ially unsatisf ied) performance obl igat ions at the end of the reporting period is not disclosed as almost all fee-earning contracts have an expected duration of less than one year • promised considerat ion is not adjusted for the effects of a sign iﬁcant ﬁnancing component as the per iod between the Group provid ing a serv ice and the customer paying for it is expected to be less than one year • incremental costs of obtain ing a fee-earn ing contract are recognised upfront in ‘Fees and commiss ion expense’ rather than amortised, if the expected term of the contract is less than one year The determinat ion of the serv ices performed for the customer, the transaction price, and when the services are completed depends on the nature of the product with the customer. The main considerat ions on income recognit ion by product are as follows: Transaction Banking The Group recognises fee income associated with transactional trade and cash management at the point in time the service is provided. The Group recognises income associated with trade contingent risk exposures (such as letters of credit and guarantees) over the period in which the service is provided. Payment of fees is usually received at the same time the service is provided. In some cases, letters of credit and guarantees issued by the Group have annual upfront premiums, which are amortised on a straight-line basis to fee income over the year. Global Markets The Group recognises fee income at the point in time the service is provided. Fee income is recognised for a sign iﬁcant non- lending service when the transaction has been completed and the terms of the contract with the customer entitle the Group to the fee. This includes fees such as structuring and advisory fees. Fees are usually received shortly after the service is provided. Syndicat ion fees are recogn ised when the syndicat ion is complete deﬁned as achiev ing the ﬁnal approved hold pos it ion. Fees are generally received before completion of the syndicat ion, or w ith in 12 months of the transact ion date. Securit ies serv ices include custody services, fund accounting and admin istrat ion, and broker clearing. Fees are recognised over the period the custody or fund management services are provided, or as and when broker services are requested. Wealth Management Upfront considerat ion on bancassurance agreements is amortised straight-line over the contractual term. Commiss ions for bancassurance activ it ies are recorded as they are earned through sales of third-party insurance products to customers. These commiss ions are rece ived with in a short t ime frame of the commiss ion be ing earned. Target-linked fees are accrued based on percentage of the target achieved, provided it is assessed as highly probable that the target will be met. Cash payment is received at a contractually specif ied date after ach ievement of a target has been conﬁrmed. Upfront and trail ing comm iss ions for managed investment placements are recorded as they are conﬁrmed. Income from these activ it ies is relatively even throughout the period, and cash is usually received with in a short t ime frame after the commiss ion is earned. Retail Products The Group recognises most income at the point in time the Group is entitled to the fee, since most services are provided at the time of the customer’s request. In most of our retail markets there are circumstances under which fees are waived, income recognit ion is adjusted to reﬂect customer’s intent to pay the annual fee. The Group defers the fair value of reward points on its credit card reward programmes, and recognises income and costs associated with fulﬁll ing the reward at the t ime of redemption. 2024 2023 $mill ion $mill ion Fees and commiss ions income 4,623 4,067 Of which: Financ ial instruments that are not fair valued through proﬁt or loss 1,436 1,374 Trust and other ﬁduciary act iv it ies 632 508 Fees and commiss ions expense (889) (815) Of which: Financ ial instruments that are not fair valued through proﬁt or loss (245) (169) Trust and other ﬁduciary act iv it ies (50) (52) Net fees and commiss ion 3,734 3,252 4. Net fees and commiss ion continued Financ ial statements Notes to the ﬁnancial statements 302 Standard Chartered – Annual Report 2024 2024 2023 Corporate & Wealth & Central & Corporate & Wealth & Central & Investment Retail other Investment Retail other Banking Banking Ventures items Total Banking Banking Ventures items Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Transaction Services 1,456 26 – – 1,482 1,415 25 – – 1,440 Payments and Liqu id ity 634 – – – 634 567 – – – 567 Securit ies Serv ices 254 – – – 254 271 – – – 271 Trade & Working Capital 568 26 – – 594 577 25 – – 602 Global Banking 937 – – – 937 694 – – – 694 Lending & Financ ial Solut ions 633 – – – 633 499 – – – 499 Capital Market & Advisory 304 – – – 304 195 – – – 195 Global Markets 36 – – – 36 55 – – – 55 Macro Trading (3) – – – (3) (20) – – – (20) Credit Trading 40 – – – 40 69 – – – 69 Valuation & Other Adj (1) – – – (1) 6 – – – 6 Wealth solutions – 1,598 2 – 1,600 – 1,225 – – 1,225 Investment Products – 929 2 – 931 – 633 – – 633 Bancassurance – 669 – – 669 – 592 – – 592 CCPL & Other Unsecured Lending – 321 42 – 363 – 372 32 – 404 Deposits – 143 2 – 145 – 163 – – 163 Mortgages & Other Secured Lending – 79 – – 79 – 70 – – 70 Treasury – – – (22) (22) – – – (15) (15) Other Products – 1 32 (30) 3 – 2 35 (6) 31 Fees and commiss ion income 2,429 2,168 78 (52) 4,623 2,164 1,857 67 (21) 4,067 Fees and commiss ion expense (491) (313) (26) (59) (889) (411) (319) (24) (61) (815) Net fees and commiss ion 1,938 1,855 52 (111) 3,734 1,753 1,538 43 (82) 3,252 Upfront bancassurance considerat ion amounts are amort ised on a straight-line basis over the contractual period to which the considerat ion relates. Deferred income on the balance sheet in respect of these activ it ies is $419 mill ion (31 December 2023: $474 mill ion). Follow ing renegotiat ion of the contract in 2023, the life of the contract was extended for a further 3 years and the income will be earned evenly till June 2032. For the twelve months ended 31 December 2024, $56 mill ion of fee income was released from deferred income (31 December 2023: $75 mill ion). 5. Net trading income Accounting policy Gains and losses aris ing from changes in the fair value of ﬁnanc ial instruments held at fair value through proﬁt or loss are recorded in net trading income in the period in which they arise. This includes contractual interest receivable or payable. When the in it ial fair value of a ﬁnanc ial instrument held at fair value through proﬁt or loss relies on unobservable inputs, the difference between the in it ial valuation and the transaction price is amortised to net trading income as the inputs become observable or over the life of the instrument, whichever is shorter. Any unamortised ‘day one’ gain is released to net trading income if the transaction is terminated. Income is recognised from the sale and purchase of trading posit ions, marg ins on market making and customer business and fair value changes. 2024 2023 $mill ion $mill ion Net trading income 9,615 6,292 Sign iﬁcant items with in net trad ing income include: Gains on instruments held for trading 1 7,418 4,625 Gains on ﬁnanc ial assets mandator ily at fair value through proﬁt or loss 5,392 4,270 Gains on ﬁnanc ial assets des ignated at fair value through proﬁt or loss 8 10 Losses on ﬁnancial l iab il it ies des ignated at fair value through proﬁt or loss (3,252) (2,649) 1 Includes $583 mill ion ga in (31 December 2023: $299 mill ion loss) from the translat ion of foreign currency monetary assets and liab il it ies, out of wh ich $157 mill ion (31 December 2023: $nil) relates to Egypt FX revaluation impact Financ ial statements Standard Chartered – Annual Report 2024 303 6. Other operating income 2024 2023 $mill ion $mill ion Other operating income includes: Rental income from operating lease assets 40 375 Net loss on disposal of fair value through other comprehensive income debt instruments (237) (115) Net loss on amortized cost ﬁnanc ial assets (27) (94) Net (loss)/gain on sale of businesses¹ (210) 351 Div idend income 5 15 Other² 257 174 Other operating income (172) 706 1 2024 includes loss on disposal of Africa subsid iar ies $217 mill ion (SCB Z imbabwe Lim ited: $172 m ill ion, SCB Angola S.A.: $26 m ill ion and SCB S ierra Leone Lim ited: $19 mill ion) of wh ich $246 mill ion relates to real izat ion of translat ion adjustment loss, partly offset by gain of $17 mill ion from d isposal of Venture entit ies (Shoal lim ited and Autumn l ife Pte. Ltd), Total cash considerat ion rece ived was $74 mill ion (SCB Z imbabwe Lim ited: $24 m ill ion, SCB Angola S.A.: $10 m ill ion, SCB S ierra Leone Lim ited: $17 m ill ion, Shoal L im ited: $17 m ill ion and Autumn l ife Pte. Ltd: $6 mill ion). 2023 includes $309 mill ion ga in from the sale of the aviat ion ﬁnance leasing business, $18 mill ion from sale of assoc iate (Metaco SA), $16 mill ion ga in from sale of subsid iary ($9 m ill ion from Cardspal and $7 m ill ion from Kozag i) and $8 mill ion ga in from the sale of Jordan one of Africa subsid iary 2 2024 includes IAS 29 adjustment Ghana hyperinﬂat ionary impact ($139 mill ion), Research and development expend iture credit ($32 mill ion), Rebates/ incent ives received from VISA card ($25 mill ion), Ga in on disposal of property plant and equipment ($23 mill ion), Mark-to-market ga ins from deferred compensation income ($17 mill ion), and immater ial balances across other geograph ies. 2023 mainly includes $59 mill ion tax cred it against Research & Development Expenditure, $38 mill ion ga in on disposal of premises, $21 mill ion income from VISA sponsorship in Hong Kong, $10 mill ion from ga in on lease modif icat ion in Hong Kong and $16 mill ion interest income from tax refund in India 7. Operating expenses 2024 2023 $mill ion $mill ion Staff costs: Wages and salaries 6,567 6,459 Social security costs 246 233 Other pension costs (Note 30) 451 431 Share-based payment costs (Note 31) 334 226 Other staff costs 912 907 8,510 8,256 Premises and equipment expenses: 401 422 General admin istrat ive expenses: UK bank levy 90 111 Other general admin istrat ive expenses 2,375 1,691 2,465 1,802 Depreciat ion and amort isat ion: Property, plant and equipment: Premises 299 315 Equipment 128 103 Operating lease assets – 27 427 445 Intangibles: Software 695 625 Acquired on business combinat ions 4 1 1,126 1,071 Total operating expenses 12,502 11,551 Other staff costs include redundancy expenses of $186 mill ion (31 December 2023: $106 m ill ion). Further costs in this category include train ing, travel costs and other staff-related costs. Details of directors’ pay, beneﬁts, pensions and beneﬁts and interests in shares are disclosed in the Directors’ remuneration report (page 143). Transactions with directors, ofﬁcers and other related parties are disclosed in Note 36. Operating expenses include research expenditures of $1,187 mill ion (31 December 2023: $996 m ill ion), wh ich was recognized as an expense in the year The UK bank levy is applied to chargeable equity and liab il it ies on the balance sheet of UK operat ions. Key exclusions from chargeable equity and liab il it ies include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain sovereign debt and liab il it ies subject to nett ing. The rates are 0.10 per cent for short-term liab il it ies and0.05 per cent for long-term liab il it ies. Financ ial statements Notes to the ﬁnancial statements 304 Standard Chartered – Annual Report 2024 8. Credit impa irment Accounting policy Sign iﬁcant account ing estimates and judgements The Group’s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying assumptions. The sign iﬁcant judgements in determin ing expected cred it loss include: • The Group’s criter ia for assess ing if there has been a sign iﬁcant increase in credit risk; • Development of expected credit loss models, includ ing the cho ice of inputs relating to macroeconomic variables; • Determin ing est imates of forward looking macroeconomic forecasts; • Evaluation of management overlays and post-model adjustments; • Determinat ion of probab il ity we ight ings for Stage 3 ind iv idually assessed provis ions The calculation of credit impa irment prov is ions also involves expert credit judgement to be applied by the credit risk management team based upon counterparty informat ion they rece ive from various sources includ ing relat ionsh ip managers and on external market informat ion. Deta ils on the approach for determin ing expected cred it loss can be found in the credit risk section, under IFRS 9 Methodology (page 236). Estimates of forecasts of key macroeconomic variables underlying the expected credit loss calculation can be found with in the Risk review, Key assumptions and judgements in determin ing expected cred it loss (page 238). Expected credit losses An ECL represents the present value of expected cash shortfalls over the residual term of a ﬁnanc ial asset, undrawn commitment or ﬁnanc ial guarantee. A cash shortfall is the difference between the cash ﬂows that are due in accordance with the contractual terms of the instrument and the cash ﬂows that the Group expects to receive over the contractual life of the instrument. Measurement ECL are computed as unbiased, probabil ity-we ighted amounts which are determined by evaluating a range of reasonably possible outcomes, the time value of money, and consider ing all reasonable and supportable informat ion includ ing that which is forward-looking. For material portfolios, the estimate of expected cash shortfalls is determined by multiply ing the probab il ity of default (PD) with the loss given default (LGD) with the expected exposure at the time of default (EAD). There may be multiple default events over the lifet ime of an instrument. Further details on the components of PD, LGD and EAD are disclosed in the Credit risk section. For less material Retail Banking loan portfolios, the Group has adopted less sophist icated approaches based on histor ical roll rates or loss rates. Forward-looking economic assumptions are incorporated into the PD, LGD and EAD where relevant and where they inﬂuence credit risk, such as GDP growth rates, interest rates, house price ind ices and commod ity prices among others. These assumptions are incorporated using the Group’s most likely forecast for a range of macroeconomic assumptions. These forecasts are determined using all reasonable and supportable informat ion, wh ich includes both internally developed forecasts and those available externally, and are consistent with those used for budgeting, forecasting and capital planning. To account for the potential non-linear ity in credit losses, multiple forward-looking scenarios are incorporated into the range of reasonably possible outcomes for all material portfolios. For example, where there is a greater risk of downside credit losses than upside gains, multiple forward-looking economic scenarios are incorporated into the range of reasonably possible outcomes, both in respect of determin ing the PD (and where relevant, the LGD and EAD) and in determin ing the overall ECL amounts. These scenar ios are determined using a Monte Carlo approach centred around the Group’s most likely forecast of macroeconomic assumptions. The period over which cash shortfalls are determined is generally lim ited to the max imum contractual period for which the Group is exposed to credit risk. However, for certain revolving credit facil it ies, which include credit cards or overdrafts, the Group’s exposure to credit risk is not lim ited to the contractual per iod. For these instruments, the Group estimates an appropriate life based on the period that the Group is exposed to credit risk, which includes the effect of credit risk management actions such as the withdrawal of undrawn facil it ies. For credit-impa ired ﬁnancial instruments, the estimate of cash shortfalls may require the use of expert credit judgement. 8. Credit impa irment continued Financ ial statements Standard Chartered – Annual Report 2024 305 The estimate of expected cash shortfalls on a collateralised ﬁnanc ial instrument reﬂects the amount and tim ing of cash ﬂows that are expected from foreclosure on the collateral less the costs of obtain ing and sell ing the collateral, regardless of whether foreclosure is deemed probable. Cash ﬂows from unfunded credit enhancements held are included with in the measurement of expected cred it losses if they are part of, or integral to, the contractual terms of the instrument (this includes ﬁnanc ial guarantees, unfunded r isk partic ipat ions and other non-derivat ive cred it insurance). Although non-integral credit enhancements do not impact the measurement of expected credit losses, a reimbursement asset is recognised to the extent of the ECL recorded. Cash shortfalls are discounted using the effective interest rate (or credit-adjusted effective interest rate for purchased or orig inated cred it-impa ired instruments (POCI)) on the ﬁnanc ial instrument as calculated at in it ial recognit ion or if the instrument has a variable interest rate, the current effective interest rate determined under the contract. Instruments Location of expected credit loss provis ions Financ ial assets held at amort ised cost Loss provis ions: netted aga inst gross carrying value 1 Financ ial assets held FVOCI – Debt instruments Other comprehensive income (FVOCI expected credit loss reserve) 2 Loan commitments Provis ions for l iab il it ies and charges 3 Financ ial guarantees Provis ions for l iab il it ies and charges 3 1 Purchased or orig inated cred it-impa ired assets do not attract an expected cred it loss provis ion on in it ial recognit ion. An expected cred it loss provis ion w ill be recognised only if there is an increase in expected credit losses from that considered at in it ial recognit ion 2 Debt and treasury securit ies class if ied as fa ir value through other comprehensive income (FVOCI) are held at fair value on the face of the balance sheet. The expected credit loss attributed to these instruments is held as a separate reserve with in other comprehens ive income (OCI) and is recycled to the proﬁt and loss account along with any fair value measurement gains or losses held with in FVOCI when the appl icable instruments are derecognised 3 Expected credit loss on loan commitments and ﬁnanc ial guarantees is recognised as a liab il ity provis ion. Where a ﬁnancial instrument includes both a loan (i.e. ﬁnanc ial asset component) and an undrawn comm itment (i.e. loan commitment component), and it is not possible to separately ident ify the expected credit loss on these components, expected credit loss amounts on the loan commitment are recognised together with expected credit loss amounts on the ﬁnancial asset. To the extent the comb ined expected credit loss exceeds the gross carrying amount of the ﬁnanc ial asset, the expected cred it loss is recognised as a liab il ity provis ion Recognit ion 12 months expected credit losses (stage 1) Expected credit losses are recognised at the time of in it ial recognit ion of a ﬁnancial instrument and represent the lifet ime cash shortfalls ar is ing from poss ible default events up to 12 months into the future from the balance sheet date. Expected credit losses continue to be determined on this basis until there is either a sign iﬁcant increase in the credit risk of an instrument or the instrument becomes credit-impa ired. If an instrument is no longer considered to exhib it a s ign iﬁcant increase in credit risk, expected credit losses will revert to being determined on a 12-month basis. Sign iﬁcant increase in credit risk (Stage 2) Sign iﬁcant increase in credit risk is assessed by comparing the risk of default of an exposure at the reporting date to the risk of default at orig inat ion (after taking into account the passage of time). Sign iﬁcant does not mean stat ist ically s ign iﬁcant nor is it assessed in the context of changes in expected credit loss. Whether a change in the risk of default is sign iﬁcant or not is assessed using a number of quantitat ive and qual itat ive factors, the we ight of which depends on the type of product and counterparty. Financ ial assets that are 30 or more days past due and not cred it-impa ired w ill always be considered to have experienced a sign iﬁcant increase in credit risk. For less material portfolios where a loss rate or roll rate approach is applied to compute expected credit loss, sign iﬁcant increase in credit risk is primar ily based on 30 days past due. Quantitat ive factors include an assessment of whether there has been sign iﬁcant increase in the forward-looking probabil ity of default (PD) s ince orig inat ion. A forward-looking PD is one that is adjusted for future economic condit ions to the extent these are correlated to changes in credit risk. We compare the residual lifet ime PD at the balance sheet date to the residual lifet ime PD that was expected at the t ime of orig inat ion for the same point in the term structure and determine whether both the absolute and relative change between the two exceeds predetermined thresholds. To the extent that the differences between the measures of default outlined exceed the deﬁned thresholds, the instrument is considered to have experienced a sign iﬁcant increase in credit risk (see page 244 to 245). Qualitat ive factors assessed include those linked to current credit risk management processes, such as lending placed on non-purely precautionary early alert (and subject to closer monitor ing). A non-purely precautionary early alert account is one which exhib its r isk or potential weaknesses of a material nature requir ing closer mon itor ing, superv is ion, or attent ion by management. Weaknesses in such a borrower’s account, if left uncorrected, could result in deteriorat ion of repayment prospects and the l ikel ihood of be ing downgraded. Indicators could include a rapid erosion of posit ion w ith in the industry, concerns over management’s abil ity to manage operat ions, weak/deteriorat ing operat ing results, liqu id ity strain and overdue balances among other factors. 8. Credit impa irment continued Financ ial statements Notes to the ﬁnancial statements 306 Standard Chartered – Annual Report 2024 Credit-impa ired (or defaulted) exposures (Stage 3) Financ ial assets that are cred it-impa ired (or in default) represent those that are at least 90 days past due in respect of princ ipal and/or interest. Financ ial assets are also cons idered to be credit-impa ired where the obl igors are unlikely to pay on the occurrence of one or more observable events that have a detrimental impact on the estimated future cash ﬂows of the ﬁnancial asset. It may not be poss ible to ident ify a s ingle discrete event but instead the combined effect of several events may cause ﬁnancial assets to become cred it-impa ired. • Evidence that a ﬁnanc ial asset is credit-impa ired includes observable data about the following events: • Sign iﬁcant ﬁnancial d iff iculty of the issuer or borrower; • Breach of contract such as default or a past due event; • For economic or contractual reasons relating to the borrower’s ﬁnanc ial d iff iculty, the lenders of the borrower have granted the borrower concession/s that lenders would not otherwise consider. This would include forbearance actions (page 226); • Pending or actual bankruptcy or other ﬁnanc ial reorgan isat ion to avo id or delay discharge of the borrower’s obligat ion/s; • The disappearance of an active market for the applicable ﬁnanc ial asset due to ﬁnancial d iff icult ies of the borrower; • Purchase or orig inat ion of a ﬁnanc ial asset at a deep d iscount that reﬂects incurred credit losses Lending commitments to a credit-impa ired obl igor that have not yet been drawn down are included to the extent that the commitment cannot be withdrawn. Loss provis ions aga inst credit-impa ired ﬁnancial assets are determ ined based on an assessment of the present value of expected cash shortfalls (discounted at the instrument’s orig inal effect ive interest rate) under a range of scenarios, includ ing the real isat ion of any collateral held where appropr iate. The Group’s deﬁn it ion of default is aligned with the regulatory deﬁn it ion of default as set out in the UK’s onshored capital requirements regulations (Art 178). Expert credit judgement For Corporate & Investment Banking and Private Banking, borrowers are graded by credit risk management on a credit grading (CG) scale from CG1 to CG14. Once a borrower starts to exhib it cred it deteriorat ion, it will move along the credit grading scale in the performing book and when it is classif ied as CG12 (wh ich is a qualitat ive tr igger for sign iﬁcant increase in credit risk (see page 245)the credit assessment and oversight of the loan will normally be performed by Stressed Assets Risk (SAR). Borrowers graded CG12 exhib it well-deﬁned weaknesses in areas such as management and/or performance but there is no current expectation of a loss of princ ipal or interest in the likely scenario. Where the impa irment assessment ind icates that there will be a loss of princ ipal on a loan in the likely scenario, the borrower is graded a CG14 while borrowers of other credit-impa ired loans are graded CG13. Instruments graded CG13 or CG14 are regarded as stage 3. For ind iv idually sign iﬁcant ﬁnancial assets w ith in stage 3, SAR w ill consider all judgements that have an impact on the expected future cash ﬂows of the asset. These include: the business prospects, industry and geopolit ical cl imate of the customer, quality of realisable value of collateral, the Group’s legal posit ion relat ive to other claimants and any renegotiat ion/forbearance/mod if icat ion options. The future cash ﬂow calculation involves sign iﬁcant judgements and estimates. As new informat ion becomes ava ilable and further negotiat ions/ forbearance measures are taken the estimates of the future cash ﬂows will be revised, and will have an impact on the future cash ﬂow analysis. For ﬁnancial assets wh ich are not ind iv idually sign iﬁcant, such as the Reta il Banking portfolio or small business loans, which comprise a large number of homogenous loans that share sim ilar character ist ics, stat ist ical est imates and techniques are used, as well as credit scoring analysis. Consumer and Business Banking clients are considered credit-impa ired where they are more 90 days past due, or if the borrower ﬁles for bankruptcy or other forbearance programme, the borrower is deceased or the business is closed in the case of a small business, or if the borrower surrenders the collateral, or there is an ident iﬁed fraud on the account. Addit ionally, if the account is unsecured and the borrower has other credit accounts with the Group that are considered credit-impa ired, the account may be also be cred it-impa ired. Techniques used to compute impa irment amounts use models wh ich analyse histor ical repayment and default rates over a time horizon. Where various models are used, judgement is required to analyse the available informat ion prov ided and select the appropriate model or combinat ion of models to use. Expert credit judgement is also applied to determine whether any post-model adjustments are required for credit risk elements which are not captured by the models. Modif ied ﬁnancial instruments Where the orig inal contractual terms of a ﬁnancial asset have been mod if ied for cred it reasons and the instrument has not been derecognised (an instrument is derecognised when a modif icat ion results in a change in cash ﬂows that the Group would consider substantial), the resulting modif icat ion loss is recognised with in cred it impa irment in the income statement with a corresponding decrease in the gross carrying value of the asset. If the modif icat ion involved a concession that the bank would not otherwise consider, the instrument is considered to be credit-impa ired and is considered forborne. Expected credit loss for modif ied ﬁnancial assets that have not been derecogn ised and are not considered to be credit-impa ired w ill be recognised on a 12-month basis, or a lifet ime bas is, if there is a sign iﬁcant increase in credit risk. These assets are assessed (by comparison to the orig inat ion date) to determine whether there has been a sign iﬁcant increase in credit risk subsequent to the modif icat ion. Although loans may be modif ied for non-cred it reasons, a sign iﬁcant increase in credit risk may occur. In addit ion to the recogn it ion of mod if icat ion gains and losses, the revised carrying value of modif ied ﬁnancial assets w ill impact the calculation of expected credit losses, with any increase or decrease in expected credit loss recognised with in impa irment. 8. Credit impa irment continued Financ ial statements Standard Chartered – Annual Report 2024 307 Forborne loans Forborne loans are those loans that have been modif ied in response to a customer’s ﬁnanc ial d iff icult ies. Forbearance strategies assist clients who are temporarily in ﬁnanc ial d istress and are unable to meet their orig inal contractual repayment terms. Forbearance can be in it iated by the client, the Group or a third-party includ ing government sponsored programmes or a conglomerate of credit inst itut ions. Forbearance may include debt restructuring such as new repayment schedules, payment deferrals, tenor extensions, interest only payments, lower interest rates, forgiveness of princ ipal, interest or fees, or relaxation of loan covenants. Forborne loans that have been modif ied (and not derecogn ised) on terms that are not consistent with those readily available in the market and/or where we have granted a concession compared to the orig inal terms of the loans are considered credit-impa ired if there is a detrimental impact on cash ﬂows. The modif icat ion loss (see Classif icat ion and measurement – Modif icat ions) is recognised in the proﬁt or loss with in cred it impa irment and the gross carry ing value of the loan reduced by the same amount. The modif ied loan is disclosed as ‘Loans subject to forbearance – credit-impa ired’. Loans that have been subject to a forbearance modif icat ion, but which are not considered credit-impa ired (not class if ied as CG13 or CG14), are disclosed as ‘Forborne – not credit-impa ired’. Th is may include amendments to covenants with in the contractual terms. Write-offs of credit-impa ired instruments and reversal of impa irment To the extent a ﬁnancial debt instrument is considered irrecoverable, the applicable portion of the gross carrying value is written off against the related loan provis ion. Such loans are wr itten off after all the necessary procedures have been completed, it is decided that there is no realist ic probab il ity of recovery and the amount of the loss has been determ ined. Subsequent recoveries of amounts previously written off decrease the amount of the provis ion for cred it impa irment in the income statement. Loss provis ions on purchased or or ig inated cred it-impa ired instruments (POCI) The Group measures expected credit loss on a lifet ime bas is for POCI instruments throughout the life of the instrument. However, expected credit loss is not recognised in a separate loss provis ion on in it ial recognit ion for POCI instruments as the lifet ime expected cred it loss is inherent with in the gross carry ing amount of the instruments. The Group recognises the change in lifet ime expected cred it losses aris ing subsequent to in it ial recognit ion in the income statement and the cumulative change as a loss provis ion. Where l ifet ime expected cred it losses on POCI instruments are less than those at in it ial recognit ion, then the favourable d ifferences are recognised as impa irment ga ins in the income statement (and as impa irment loss where the expected cred it losses are greater). Improvement in credit risk/curing For ﬁnancial assets that are cred it-impa ired (stage 3), a transfer to stage 2 or stage 1 is only permitted where the instrument is no longer considered to be credit-impa ired. An instrument will no longer be considered credit-impa ired when there is no shortfall of cash ﬂows compared to the orig inal contractual terms. For ﬁnancial assets w ith in stage 2, these can only be transferred to stage 1 when they are no longer cons idered to have experienced a sign iﬁcant increase in credit risk. Where sign iﬁcant increase in credit risk was determined using quantitat ive measures, the instruments will automatically transfer back to stage 1 when the orig inal PD based transfer cr iter ia are no longer met. Where instruments were transferred to stage 2 due to an assessment of qualitat ive factors, the issues that led to the reclassif icat ion must be cured before the instruments can be reclassif ied to stage 1. Th is includes instances where management actions led to instruments being classif ied as stage 2, requ ir ing that act ion to be resolved before loans are reclassif ied to stage 1. A forborne loan can only be removed from being disclosed as forborne if the loan is performing (stage 1 or 2) and a further two-year probation period is met. In order for a forborne loan to become performing, the following criter ia have to be sat isf ied: • At least a year has passed with no default based upon the forborne contract terms • The customer is likely to repay its obligat ions in full without realis ing secur ity • The customer has no accumulated impa irment aga inst amount outstanding (except for ECL) Subsequent to the criter ia above, a further two-year probat ion period has to be fulﬁlled, whereby regular payments are made by the customer and none of the exposures to the customer are more than 30 days past due. 2024 2023 $mill ion $mill ion Net credit impa irment on loans and advances to banks and customers 590 606 Net credit impa irment on debt secur it ies 1 (58) (50) Net credit impa irment relat ing to ﬁnanc ial guarantees and loan comm itments 18 (48) Net credit impa irment relat ing to other ﬁnanc ial assets (3) – Credit impa irment 1 547 508 1 Includes impa irment release of $14 m ill ion (2023: $1 m ill ion charge) on or ig inated cred it-impa ired debt secur it ies Financ ial statements Notes to the ﬁnancial statements 308 Standard Chartered – Annual Report 2024 9. Goodwill, property, plant and equipment and other impa irment Accounting policy Refer to the below referenced notes for the relevant accounting policy. 2024 2023 $mill ion $mill ion Impairment of property, plant and equipment (Note 18) 11 12 Impairment of other intang ible assets (Note 17) 561 112 Other 16 884¹ Goodwill, ﬁxed assets and other impa irment 588 1,008 1 Includes $850 mill ion impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai), reﬂecting Bohai’s lower reported net proﬁt in 2023, as well as banking industry challenges and property market uncertaint ies in China, that may impact Bohai’s future proﬁtab il ity 10. Taxation Accounting policy Income tax payable on proﬁts is based on the applicable tax law in each jur isd ict ion and is recognised as an expense in the period in which proﬁts arise. Deferred tax is provided on temporary differences aris ing between the tax bases of assets and l iab il it ies and the ir carrying amounts in the consolidated ﬁnanc ial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted as at the balance sheet date, and that are expected to apply when the related deferred tax asset is realised or the deferred income tax liab il ity is settled. Deferred tax assets are recognised where it is probable that future taxable proﬁt will be available against which the temporary differences can be util ised. Where perm itted, deferred tax assets and liab il it ies are offset on an ent ity basis and not by component of deferred taxation. Current and deferred tax relating to items which are charged or credited directly to equity, is credited or charged directly to equity and is subsequently recognised in the income statement together with the current or deferred gain or loss. Other accounting estimates and judgements • Determin ing the Group’s tax charge for the year involves estimat ion and judgement, wh ich includes an interpretat ion of local tax laws and an assessment of whether the tax authorit ies w ill accept the posit ion taken. These judgements take account of external advice where appropriate, and the Group’s view on settling with the relevant tax authorit ies • The Group provides for current tax liab il it ies at the best est imate of the amount that is expected to be paid to the tax authorit ies where an outﬂow is probable. In making its estimates the Group assumes that the tax authorit ies w ill examine all the amounts reported to them and have full knowledge of all relevant informat ion • The recoverabil ity of the Group’s deferred tax assets is based on management’s judgement of the availab il ity of future taxable proﬁts against which the deferred tax assets will be util ised. In prepar ing management forecasts the effect of applicable laws and regulations relevant to the util isat ion of future taxable proﬁts have been considered. The following table provides analysis of taxation charge in the year: 2024 2023 $mill ion $mill ion The charge for taxation based upon the proﬁt for the year comprises: Current tax: United Kingdom corporation tax at 25 per cent (2023: 23.5 per cent): Current tax charge on income for the year 16 (48) Adjustments in respect of prior years (includ ing double tax rel ief) 1 14 Foreign tax: Current tax charge on income for the year 1,752 1,695 Adjustments in respect of prior years (8) (11) 1,761 1,650 Deferred tax: Orig inat ion/reversal of temporary differences 198 (22) Adjustments in respect of prior years 13 3 211 (19) Tax on proﬁts on ordinary activ it ies 1,972 1,631 Effective tax rate 32.8% 32.0% The tax charge for the year of $1,972 mill ion (31 December 2023: $1,631 m ill ion) on a proﬁt before tax of $6,014 m ill ion (31 December 2023: $5,093 mill ion) reﬂects the impact of tax losses for which no deferred tax assets are recognised, non- creditable withhold ing taxes and other taxes and non-deduct ible expenses. These are partly offset by countries with tax rates lower than the UK, the most sign iﬁcant of wh ich are Hong Kong and Singapore, and tax exempt income. Foreign tax includes current tax of $272 mill ion (31 December 2023: $201 m ill ion) on the proﬁts assessable in Hong Kong. Deferred tax includes orig inat ion or reversal of temporary differences of $8 mill ion (31 December 2023: $n il mill ion) prov ided at a rate of 16.5 per cent (31 December 2023: 16.5 per cent) on the proﬁts assessable in Hong Kong. 10. Taxation continued Financ ial statements Standard Chartered – Annual Report 2024 309 The Group falls with in the P illar Two global min imum tax rules wh ich apply in the UK from 1 January 2024. The IAS 12 exception to recognise and disclose informat ion about deferred tax assets and l iab il it ies related to P illar Two income taxes has been applied. The current tax charge for the period ended 31 December 2024 includes $17m in respect of Pillar Two income taxes (31 December 2023: N/A). Tax rate: The tax charge for the year is higher than the charge at the rate of corporation tax in the UK, 25 per cent. The differences are explained below: 2024 2023 $mill ion % $mill ion % Proﬁt on ordinary activ it ies before tax 6,014 5,093 Tax at 25 per cent (2023: 23.5 per cent) 1,504 25.0 1,197 23.5 Lower tax rates on overseas earnings (425) (7.1) (330) (6.5) Higher tax rates on overseas earnings 269 4.5 306 6.0 Tax at domestic rates applicable where proﬁts earned 1,348 22.4 1,173 23.0 Non-creditable withhold ing taxes and other taxes 260 4.3 85 1.7 Tax exempt income (133) (2.2) (131) (2.6) Share of associates and jo int ventures (6) (0.1) (14) (0.3) Non-deductible expenses 243 4.0 219 4.3 Bank levy 23 0.4 26 0.5 Non-taxable losses on investments 1 35 0.6 64 1.3 Payments on ﬁnancial instruments in reserves (72) (1.2) (68) (1.3) Deferred tax not recognised 298 5.0 278 5.4 Deferred tax rate changes (3) – (1) – Adjustments to tax charge in respect of prior years 6 0.1 6 0.1 Other items (27) (0.5) (6) (0.1) Tax on proﬁt on ordinary activ it ies 1,972 32.8 1,631 32.0 1 2024 Includes tax impact of $55m (2023:$nil) relating to loss on sale of subsid iar ies in Africa and $nil relating to China Bohai impa irment (2023:$140m). Factors affecting the tax charge in future years: the Group’s tax charge, and effective tax rate in future years could be affected by several factors includ ing acqu is it ions, disposals and restructuring of our businesses, the mix of proﬁts across jur isd ict ions w ith different statutory tax rates, changes in tax legislat ion and tax rates and resolut ion of uncertain tax posit ions. The evaluation of uncertain tax posit ions involves an interpretat ion of local tax laws wh ich could be subject to challenge by a tax authority, and an assessment of whether the tax authorit ies w ill accept the posit ion taken. The Group does not currently consider that assumptions or judgements made in assessing tax liab il it ies have a s ign iﬁcant r isk of resulting in a material adjustment with in the next ﬁnancial year. 2024 2023 Tax recognised in other Current tax Deferred tax Total Current tax Deferred tax Total comprehensive income $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Items that will not be reclassif ied to income statement (16) 113 97 – (107) (107) Own credit adjustment 1 49 50 – (49) (49) Equity instruments at fair value through other comprehensive income (17) 76 59 – (69) (69) Retirement beneﬁt obligat ions – (12) (12) – 11 11 Items that may be reclassed subsequently to income statement (7) (30) (37) – (129) (129) Debt instruments at fair value through other comprehensive income (7) (44) (51) – (17) (17) Cash ﬂow hedges – 14 14 – (112) (112) Total tax credit/(charge) recognised in equity (23) 83 60 – (236) (236) Current tax: The following are the movements in current tax during the year: 2024 2023 Current tax comprises: $mill ion $mill ion Current tax assets 484 503 Current tax liab il it ies (811) (583) Net current tax opening balance (327) (80) Movements in income statement (1,761) (1,650) Movements in other comprehensive income (23) – Taxes paid 2,045 1,367 Other movements 3 36 Net current tax balance as at 31 December (63) (327) Current tax assets 663 484 Current tax liab il it ies (726) (811) Total (63) (327) 10. Taxation continued Financ ial statements Notes to the ﬁnancial statements 310 Standard Chartered – Annual Report 2024 Deferred tax: The following are the major deferred tax liab il it ies and assets recogn ised by the Group and movements thereon during the year: Exchange At 1 January & other (Charge)/credit (Charge)/credit At 31 December 2024 adjustments to proﬁt to equity 2024 Deferred tax comprises: $mill ion $mill ion $mill ion $mill ion $mill ion Accelerated tax depreciat ion (424) 7 40 (3) (380) Impairment provis ions on loans and advances 286 (2) (94) – 190 Tax losses carried forward 97 (24) 1 – 74 Equity Instruments at Fair value through other comprehensive income (144) 6 – 76 (62) Debt Instruments at Fair value through other comprehensive income 27 3 (16) (44) (30) Cash ﬂow hedges (25) 2 – 14 (9) Own credit adjustment (71) 26 – 49 4 Retirement beneﬁt obligat ions 4 (5) 6 (12) (7) Share-based payments 43 (1) 12 – 54 Other temporary differences 139 (1) (160) 35 13 Net deferred tax assets (68) 11 (211) 115 (153) Exchange & other (Charge)/credit (Charge)/credit At 31 December At 1 January 2023 adjustments to proﬁt to equity 2023 $mill ion $mill ion $mill ion $mill ion $mill ion Deferred tax comprises: Accelerated tax depreciat ion (589) 236 (71) – (424) Impairment provis ions on loans and advances 334 (20) (28) – 286 Tax losses carried forward 212 (106) (9) – 97 Equity Instruments at Fair value through other comprehensive income (74) (1) – (69) (144) Debt Instruments at Fair value through other comprehensive income 61 (14) (3) (17) 27 Cash ﬂow hedges 89 (2) – (112) (25) Own credit adjustment 5 (27) – (49) (71) Retirement beneﬁt obligat ions 2 2 (11) 11 4 Share-based payments 36 – 7 – 43 Other temporary differences (11) 16 134 – 139 Net deferred tax assets 65 84 19 (236) (68) Deferred tax comprises assets and liab il it ies as follows: 2024 2023 Total Asset Liab il ity Total Asset Liab il ity $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Deferred tax comprises: Accelerated tax depreciat ion (380) 19 (399) (424) 3 (427) Impairment provis ions on loans and advances 190 139 51 286 282 4 Tax losses carried forward 74 51 23 97 49 48 Equity Instruments at Fair value through other comprehensive income (62) (12) (50) (144) (1) (143) Debt Instruments at Fair value through other comprehensive income (30) (14) (16) 27 29 (2) Cash ﬂow hedges (9) – (9) (25) 12 (37) Own credit adjustment 4 4 – (71) (1) (70) Retirement beneﬁt obligat ions (7) 16 (23) 4 13 (9) Share-based payments 54 12 42 43 9 34 Other temporary differences 13 199 (186) 139 307 (168) (153) 414 (567) (68) 702 (770) The recoverabil ity of the Group’s deferred tax assets is based on management’s judgement of the availab il ity of future taxable proﬁts against which the deferred tax assets will be util ised. The Group’s total deferred tax assets include $74 mill ion relat ing to tax losses carried forward, of which $23 mill ion ar ises in legal entit ies w ith offsetting deferred tax liab il it ies. The rema in ing deferred tax assets on losses of $51 mill ion are forecast to be recovered before exp iry and with in ﬁve years. 10. Taxation continued Financ ial statements Standard Chartered – Annual Report 2024 311 Unrecognised deferred tax Net Gross Net Gross 2024 2024 2023 2023 $mill ion $mill ion $mill ion $mill ion No account has been taken of the following potential deferred tax assets/(liab il it ies): Withhold ing tax on unrem itted earnings from overseas subsid iar ies and associates (611) (6,827) (653) (7,685) Tax losses 2,494 10,414 2,242 9,326 Held over gains on incorporation of overseas branches (360) (1,366) (366) (1,389) Other temporary differences 356 1,363 397 1,516 11. Div idends The Board considers a number of factors prior to div idend declarat ion which includes the rate of recovery in the Group’s ﬁnancial performance, the macroeconom ic environment, and opportunit ies to further invest in our business and grow proﬁtably in our markets. Div idends on equ ity instruments are recognized as a liab il ity once they have been declared and no longer at the discret ion of the directors, and in certain situat ions, approved by shareholders. Ordinary equity shares 2024 2023 Cents per share $mill ion Cents per share $mill ion 2023/2022 ﬁnal div idend declared and pa id during the year 21 551 14 401 2024/2023 inter im d iv idend declared and pa id during the year 9 229 6 167 Div idends on ord inary equity shares are recorded in the period in which they are declared and, in respect of the ﬁnal div idend, have been approved by the shareholders. Accordingly, the ﬁnal ordinary equity share div idends set out above relate to the respective prior years. 2024 recommended ﬁnal ordinary equity share div idend The 2024 ﬁnal ordinary equity share div idend recommended by the Board is 28 cents per share. The ﬁnanc ial statements for the year ended 31 December 2024 do not reﬂect this div idend as th is will be accounted for in shareholders’ equity as an appropriat ion of reta ined proﬁts in the year ending 31 December 2025. The div idend w ill be paid in either pounds sterling, Hong Kong dollars or US dollars on 19 May 2025 to shareholders on the UK and HK register of members at the close of business in the UK on 28 March 2025. Preference shares and Addit ional T ier 1 securit ies Div idends on these preference shares and secur it ies class if ied as equ ity are recorded in the period in which they are declared. 2024 2023 $mill ion $mill ion Non-cumulative redeemable preference shares: 7.014 per cent preference shares of $5 each 53 53 Floating rate preference shares of $5 each¹ 54 50 107 103 Addit ional T ier 1 securit ies: ﬁxed rate resett ing perpetual subordinated contingent convertible securit ies 350 349 457 452 1 Floating rate is based on Secured Overnight Financ ing Rate (SOFR), average rate pa id for ﬂoating preference shares is 7.21% (2023: 6.62%) Financ ial statements Notes to the ﬁnancial statements 312 Standard Chartered – Annual Report 2024 12. Earnings per ordinary share Accounting policy The Group also measures earnings per share on an underlying basis. This differs from earnings deﬁned in IAS 33 Earnings per share. Underlying earnings is proﬁt/(loss) attributable to ordinary shareholders adjusted for proﬁts or losses of a capital nature; amounts consequent to investment transactions driven by strategic intent; and other infrequent and/or exceptional transactions that are sign iﬁcant or mater ial in the context of the Group’s normal business earnings for the year. The table below provides the basis of underlying earnings. 2024 2023 $mill ion $mill ion Proﬁt for the period attributable to equity holders 4,042 3,462 Non-controlling interest 8 7 idend payable on preference shares and AT1 class Div if ied as equ ity (457) (452) Proﬁt for the period attributable to ordinary shareholders 3,593 3,017 Items normalised¹: Restructuring 441 14 Goodwill & other impa irment – 850 Net loss/(gain) on sale of businesses 232 (262) DVA 24 (17) Other items 100 – Tax on normalised items (114) (21) Underlying proﬁt attributable to ordinary shareholders 4,276 3,581 Basic – weighted average number of shares (mill ions) 2,543 2,778 Diluted – weighted average number of shares (mill ions) 2,610 2,841 Basic earnings per ordinary share (cents) 141.3 108.6 Diluted earnings per ordinary share (cents) 137.7 106.2 Underlying basic earnings per ordinary share (cents) 168.1 128.9 Underlying diluted earnings per ordinary share (cents) 163.8 126.0 1 Refer note 2 segmental informat ion (page 298) for normal ised items The calculation of basic earnings per share is based on the proﬁt attributable to equity holders of the parent and the basic weighted average number of shares excluding treasury shares held in employees beneﬁt trust. When calculating the diluted earnings per share, the weighted average number of shares in issue is adjusted for the effects of all expected dilut ive potent ial ordinary shares held in respect of SC PLC totalling 59 mill ion (2023: 56 m ill ion). The total number of share opt ions outstanding, under schemes considered to be potentially dilut ive, was 7 m ill ion (2023: 7 m ill ion). These opt ions have strike prices ranging from $3.93 to $7.64. Of the total number of employee share options and share awards at 31 December 2024 there were nil share options and share awards which were anti-dilut ive. The 235 mill ion decrease (2023: 188 m ill ion decrease) in the basic weighted average number of shares is primar ily due to the impact of the share buyback programmes completed in the year. Financ ial statements Standard Chartered – Annual Report 2024 313 13. Financ ial instruments Classif icat ion and measurement Accounting policy Financ ial assets held at amort ised cost and fair value through other comprehensive income Debt instruments held at amortised cost or held at FVOCI have contractual terms that give rise to cash ﬂows that are solely payments of princ ipal and interest (SPPI) characterist ics. In assessing whether the contractual cash ﬂows have SPPI characterist ics, the Group cons iders the contractual terms of the instrument. This includes assessing whether the ﬁnanc ial asset conta ins a contractual term that could change the tim ing or amount of contractual cash ﬂows such that it would not meet this condit ion. In mak ing the assessment, the Group considers: • Contingent events that would change the amount and tim ing of cash ﬂows • Leverage features • Prepayment and extension terms • Terms that lim it the Group’s cla im to cash ﬂows from specif ied assets (e.g. non-recourse asset arrangements) • Features that modify considerat ion of the t ime value of money – e.g. period ical reset of interest rates Whether ﬁnancial assets are held at amort ised cost or at FVOCI depends on the object ives of the bus iness models under which the assets are held. A business model refers to how the Group manages ﬁnanc ial assets to generate cash ﬂows. The Group makes an assessment of the objective of a bus iness model in which an asset is held at the ind iv idual product business line, and where applicable with in bus iness lines depending on the way the business is managed and informat ion is provided to management. Factors considered include: • How the performance of the product business line is evaluated and reported to the Group’s management • How managers of the business model are compensated, includ ing whether management is compensated based on the fair value of assets or the contractual cash ﬂows collected • The risks that affect the performance of the business model and how those risks are managed • The frequency, volume and tim ing of sales in prior periods, the reasons for such sales and expectations about future sales activ ity The Group’s business model assessment is as follows: Business model Business object ive Characterist ics Businesses Products Hold to Intent is to orig inate • Provid ing ﬁnancing and • Global Banking • Loans and advances collect ﬁnancial assets and orig inat ing assets to earn interest • Transaction Banking • Debt securit ies hold them to maturity, income as primary income stream • Retail Lending collecting the • Performing credit risk • Treasury Markets contractual cash ﬂows management activ it ies (Loans and over the term of the • Costs include funding costs, Borrowings) instrument transaction costs and impa irment losses Hold to Business object ive met • Portfolios held for liqu id ity needs; • Treasury Markets • Debt securit ies collect through both hold to or where a certain interest yield and sell collect and by selling proﬁle is mainta ined; or that are ﬁnancial assets normally rebalanced to achieve matching of duration of assets and liab il it ies • Income streams come from interest income, fair value changes, and impa irment losses Fair value All other business • Assets held for trading • Treasury Markets • Derivat ives through objectives, includ ing • Assets that are orig inated, • All other business lines • Equity shares proﬁt or loss trading and managing purchased, and sold for proﬁt • Trading portfolios ﬁnancial assets on taking or underwrit ing act iv ity • Reverse repos a fair value basis • Performance of the portfolio is • Bond and Loan evaluated on a fair value basis Syndicat ion • Income streams are from fair value changes or trading gains or losses 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 314 Standard Chartered – Annual Report 2024 Financ ial assets wh ich have SPPI characterist ics and that are held w ith in a bus iness model whose object ive is to hold ﬁnancial assets to collect contractual cashﬂows (hold to collect) are recorded at amort ised cost. Conversely, ﬁnanc ial assets which have SPPI characterist ics but are held w ith in a bus iness model whose object ive is achieved by both collecting contractual cashﬂows and selling ﬁnanc ial assets (Hold to collect and sell) are class if ied as held at FVOCI. Both hold to collect and hold to collect and sell business models involve holding ﬁnanc ial assets to collect the contractual cashﬂows. However, the business models are dist inct by reference to the frequency and s ign iﬁcance that asset sales play in meeting the objective under wh ich a particular group of ﬁnanc ial assets is managed. Hold to collect business models are characterised by asset sales that are inc idental to meet ing the object ives under wh ich a group of assets is managed. Sales of assets under a hold to collect business model can be made to manage increases in the credit risk of ﬁnanc ial assets but sales for other reasons should be infrequent or ins ign if icant. Cashﬂows from the sale of ﬁnancial assets under a hold to collect and sell business model by contrast are integral to achiev ing the objectives under wh ich a particular group of ﬁnancial assets are managed. Th is may be the case where frequent sales of ﬁnanc ial assets are requ ired to manage the Group’s daily liqu id ity requirements or to meet regulatory requirements to demonstrate liqu id ity of ﬁnanc ial instruments. Sales of assets under hold to collect and sell business models are therefore both more frequent and more sign iﬁcant in value than those under the hold to collect model. Equity instruments designated as held at FVOCI Non-trading equity instruments acquired for strategic purposes rather than capital gain may be irrevocably designated at in it ial recognit ion as held at FVOCI on an instrument-by-instrument basis. Div idends rece ived are recognised in proﬁt or loss. Gains and losses aris ing from changes in the fair value of these instruments, includ ing fore ign exchange gains and losses, are recognised directly in equity and are never reclassif ied to proﬁt or loss even on derecogn it ion. Mandatorily classif ied at fa ir value through proﬁt or loss Financ ial assets and l iab il it ies wh ich are mandatorily held at fair value through proﬁt or loss are split between two subcategories as follows: Trading, includ ing: • Financ ial assets and l iab il it ies held for trad ing, which are those acquired princ ipally for the purpose of sell ing in the short-term • Derivat ives Non-trading mandatorily at fair value through proﬁt or loss, includ ing: • Instruments in a business which has a fair value business model (see the Group’s business model assessment) which are not trading or derivat ives • Hybrid ﬁnanc ial assets that conta in one or more embedded derivat ives • Financ ial assets that would otherw ise be measured at amortised cost or FVOCI but which do not have SPPI characterist ics • Equity instruments that have not been designated as held at FVOCI • Financ ial l iab il it ies that const itute contingent considerat ion in a business combinat ion Designated at fair value through proﬁt or loss Financ ial assets and l iab il it ies may be des ignated at fair value through proﬁt or loss when the designat ion el im inates or sign iﬁcantly reduces a measurement or recogn it ion incons istency that would otherw ise arise from measuring assets or liab il it ies on a d ifferent basis (‘accounting mismatch’). Financ ial l iab il it ies may also be des ignated at fair value through proﬁt or loss where they are managed on a fair value basis or have an embedded derivat ive where the Group is not able to separately value, and thus bifurcate, the embedded derivat ive component. Financ ial l iab il it ies held at amort ised cost Financ ial l iab il it ies that are not ﬁnancial guarantees or loan comm itments and that are not classif ied as ﬁnancial l iab il it ies held at fair value through proﬁt or loss are classif ied as ﬁnancial l iab il it ies held at amort ised cost. Preference shares which carry a mandatory coupon that represents a market rate of interest at the issue date, or which are redeemable on a specif ic date or at the opt ion of the shareholder are classif ied as ﬁnancial l iab il it ies and are presented in other borrowed funds. The div idends on these preference shares are recogn ised in the income statement as interest expense on an amortised cost basis using the effective interest method. 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 315 Financ ial guarantee contracts and loan comm itments The Group issues ﬁnanc ial guarantee contracts and loan comm itments in return for fees. Financ ial guarantee contracts and any loan commitments issued at below-market interest rates are in it ially recognised at their fair value as a ﬁnanc ial liab il ity, and subsequently measured at the higher of the in it ial value less the cumulative amount of income recognised in accordance with the princ iples of IFRS 15 Revenue from Contracts w ith Customers and their expected credit loss provis ion. Loan commitments may be designated at fair value through proﬁt or loss where that is the business model under which such contracts are held. Fair value of ﬁnanc ial assets and l iab il it ies The fair value of ﬁnanc ial instruments is generally measured on the basis of the ind iv idual ﬁnanc ial instrument. However, when a group of ﬁnancial assets and ﬁnancial l iab il it ies is managed on the basis of its net exposure to either market risk or credit risk, the fair value of the group of ﬁnanc ial instruments is measured on a net basis. The fair values of quoted ﬁnanc ial assets and l iab il it ies in active markets are based on current prices. A market is regarded as active if transactions for the asset or liab il ity take place with sufﬁc ient frequency and volume to prov ide pric ing informat ion on an ongo ing basis. If the market for a ﬁnanc ial instrument, and for unlisted securit ies, is not active, the Group establishes fair value by using valuation techniques. Init ial recogn it ion Regular way purchases and sales of ﬁnancial assets held at fa ir value through proﬁt or loss, and held at fair value through other comprehensive income are in it ially recognised on the trade date (the date on which the Group commits to purchase or sell the asset). Loans and advances and other ﬁnancial assets held at amort ised cost are recognised on the settlement date (the date on which cash is advanced to the borrowers). All ﬁnancial instruments are in it ially recognised at fair value, which is normally the transaction price, plus directly attributable transaction costs for ﬁnanc ial assets and l iab il it ies wh ich are not subsequently measured at fair value through proﬁt or loss. In certain circumstances, the in it ial fair value may be based on a valuation technique which may lead to the recognit ion of proﬁts or losses at the time of in it ial recognit ion. However, these proﬁts or losses can only be recogn ised when the valuation technique used is based solely on observable market data. In those cases where the in it ially recognised fair value is based on a valuation model that uses unobservable inputs, the difference between the transaction price and the valuation model is not recognised immed iately in the income statement, it will be recognised in proﬁt or loss following the passage of time, or as the inputs become observable, or the transaction matures or is terminated. Subsequent measurement Financ ial assets and ﬁnancial l iab il it ies held at amort ised cost Financ ial assets and ﬁnancial l iab il it ies held at amort ised cost are subsequently carried at amortised cost using the effective interest method (see ‘Interest income and expense’). Foreign exchange gains and losses are recognised in the income statement. Where a ﬁnancial instrument carried at amortised cost is the hedged item in a qualify ing fa ir value hedge relationsh ip, its carrying value is adjusted by the fair value gain or loss attributable to the hedged risk. Financ ial assets held at FVOCI Debt instruments held at FVOCI are subsequently carried at fair value, with all unrealised gains and losses aris ing from changes in fair value recognised in other comprehensive income and accumulated in a separate component of equity. Foreign exchange gains and losses on the amortised cost are recognised in income. Changes in expected credit losses are recognised in the proﬁt or loss and are accumulated in equity. On derecognit ion, the cumulat ive fair value gains or losses, net of the cumulative expected credit loss reserve, are transferred to the proﬁt or loss. Equity investments designated at FVOCI are subsequently carried at fair value with all unrealised gains and losses aris ing from changes in fair value (includ ing any related fore ign exchange gains or losses) recognised in other comprehensive income and accumulated in a separate component of equity. On derecognit ion, the cumulat ive reserve is transferred to retained earnings and is not recycled to proﬁt or loss. Financ ial assets and l iab il it ies held at fa ir value through proﬁt or loss Gains and losses aris ing from changes in fair value, includ ing contractual interest income or expense, recorded in the net trading income line in the proﬁt or loss. 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 316 Standard Chartered – Annual Report 2024 Derecognit ion of ﬁnancial instruments Financ ial assets wh ich are subject to commercial reﬁnanc ing where the loan is priced to the market with no payment related concessions regardless of form of legal documentation or nature of lending will be derecognised. Where the Group’s rights to the cash ﬂows under the orig inal contract have exp ired, the old loan is derecognised and the new loan is recognised at fair value. For all other modif icat ions for example forborne loans or restructuring, whether or not a change in the cash ﬂows is ‘substantially different’ is judgemental and will be considered on a case-by-case basis, taking into account all the relevant facts and circumstances. On derecognit ion of a ﬁnancial asset, the d ifference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of the considerat ion rece ived (includ ing any new asset obtained less any new liab il ity assumed) and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in proﬁt or loss except for equity instruments elected FVOCI (see above) and cumulative fair value adjustments attributable to the credit risk of a liab il ity, that are held in other comprehensive income. Financ ial l iab il it ies are derecogn ised when they are extingu ished. A ﬁnancial l iab il ity is extingu ished when the obl igat ion is discharged, cancelled or expires and this is evaluated both qualitat ively and quant itat ively. However, where a ﬁnancial liab il ity has been modif ied, it is derecognised if the difference between the modif ied cash ﬂows and the or ig inal cash ﬂows is more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitat ive assessment to determ ine whether the terms of the two instruments are substantially different. If the Group purchases its own debt, it is derecognised and the difference between the carrying amount of the liab il ity and the considerat ion pa id is included in ‘Other income’ except for the cumulative fair value adjustments attributable to the credit risk of a liab il ity that are held in Other comprehensive income, which are never recycled to the proﬁt or loss. Modif ied ﬁnancial instruments Financ ial assets and ﬁnancial l iab il it ies whose or ig inal contractual terms have been mod if ied, includ ing those loans subject to forbearance strategies, are considered to be modif ied instruments. Modif icat ions may include changes to the tenor, cash ﬂows and or interest rates among other factors. Where derecognit ion of ﬁnancial assets is appropriate (see Derecognit ion), the newly recogn ised residual loans are assessed to determine whether the assets should be classif ied as purchased or or ig inated cred it-impa ired assets (POCI). Where derecognit ion is not appropriate, the gross carrying amount of the applicable instruments is recalculated as the present value of the renegotiated or modif ied contractual cash ﬂows d iscounted at the orig inal effect ive interest rate (or credit adjusted effective interest rate for POCI ﬁnanc ial assets). The d ifference between the recalculated values and the pre-modif ied gross carry ing values of the instruments are recorded as a modif icat ion gain or loss in the proﬁt or loss. Gains and losses aris ing from mod if icat ions for credit reasons are recorded as part of ‘Credit Impairment’ (see Credit Impairment policy). Modif icat ion gains and losses aris ing from non-cred it reasons are recognised either as part of ‘Credit Impairment’ or with in income depending on whether there has been a change in the credit risk on the ﬁnanc ial asset subsequent to the modif icat ion. Modif icat ion gains and losses aris ing on ﬁnancial l iab il it ies are recogn ised with in income. The movements in the applicable expected credit loss loan posit ions are d isclosed in further detail in Risk Review. 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 317 The Group’s classif icat ion of its ﬁnanc ial assets and l iab il it ies is summarised in the following tables. Assets at fair value Non-trading mandatorily Designated Fair value Total Assets Derivat ives at fair value at fair value through other ﬁnancial held at held for through through comprehensive assets at amortised Trading hedging proﬁt or loss proﬁt or loss income fair value cost Total Assets Notes $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Cash and balances at central banks¹ – – – – – – 63,447 63,447 Financ ial assets held at fa ir value through proﬁt or loss Loans and advances to banks 2 2,213 – – – – 2,213 – 2,213 Loans and advances to customers 2 6,912 – 172 – – 7,084 – 7,084 Reverse repurchase agreements and other sim ilar secured lend ing 16 336 – 85,859 – – 86,195 – 86,195 Debt securit ies, alternat ive tier one and other elig ible b ills 76,329 – 140 70 – 76,539 – 76,539 Equity shares 5,285 – 201 – – 5,486 – 5,486 Other assets – – – – – – – – 91,075 – 86,372 70 – 177,517 – 177,517 Derivat ive ﬁnancial instruments 14 78,906 2,566 – – – 81,472 – 81,472 Loans and advances to banks 2,3 15 – – – – – – 43,593 43,593 of which – reverse repurchase agreements and other sim ilar secured lending 16 – – – – – – 2,946 2,946 Loans and advances to customers 2 15 – – – – – – 281,032 281,032 of which – reverse repurchase agreements and other sim ilar secured lending 16 – – – – – – 9,660 9,660 Investment securit ies Debt securit ies, alternat ive tier one and other elig ible b ills – – – – 88,425 88,425 55,137 143,562 Equity shares – – – – 994 994 – 994 – – – – 89,419 89,419 55,137 144,556 Other assets 20 – – 34,585 34,585 Assets held for sale 21 – – – 5 – 5 884 889 Total at 31 December 2024 169,981 2,566 86,372 75 89,419 348,413 478,678 827,091 Cash and balances at central banks¹ – 69,905 69,905 Financ ial assets held at fa ir value through proﬁt or loss Loans and advances to banks 2 2,265 – – – – 2,265 – 2,265 Loans and advances to customers 2 6,930 – 282 – – 7,212 – 7,212 Reverse repurchase agreements and other sim ilar secured lend ing 16 9,997 – 71,850 – – 81,847 – 81,847 Debt securit ies, alternat ive tier one and other elig ible b ills 52,776 – 98 78 – 52,952 – 52,952 Equity shares 2,721 – 219 – – 2,940 – 2,940 Other assets – – 6 – – 6 – 6 74,689 – 72,455 78 – 147,222 – 147,222 Derivat ive ﬁnancial instruments 14 48,333 2,101 – – – 50,434 – 50,434 Loans and advances to banks 2,3 15 – – – – – – 44,977 44,977 of which – reverse repurchase agreements and other sim ilar secured lending 16 – – – – – – 1,738 1,738 Loans and advances to customers 2 15 – – – – – – 286,975 286,975 of which – reverse repurchase agreements and other sim ilar secured lending – – – – – – 13,996 13,996 Investment securit ies Debt securit ies, alternat ive tier one and other elig ible b ills – – – – 103,328 103,328 56,935 160,263 Equity shares – – – – 992 992 – 992 – – – – 104,320 104,320 56,935 161,255 Other assets 20 – – 38,140 38,140 Assets held for sale 21 – – – – – – 701 701 Total at 31 December 2023 123,022 2,101 72,455 78 104,320 301,976 497,633 799,609 1 Comprises cash held at central banks in restricted accounts of $ 7,799 mill ion (2023: $ 6,153 m ill ion), or on demand, or placements wh ich are contractually due to mature over-night only. Other placements with central banks are reported as part of Loans and advances to customers 2 Further analysed in Risk review and Capital review (pages 193 to 274) 3 Loans and advances to banks include amounts due on demand from banks other than central banks 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 318 Standard Chartered – Annual Report 2024 Liab il it ies at fa ir value Designated Total Derivat ives at fair value ﬁnancial held for through liab il it ies at Amortised Trading hedging proﬁt or loss fair value cost Total Liab il it ies Notes $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Financ ial l iab il it ies held at fa ir value through proﬁt or loss Deposits by banks – – 1,893 1,893 – 1,893 Customer accounts – – 21,772 21,772 – 21,772 Repurchase agreements and other sim ilar secured borrowing 16 925 – 32,614 33,539 – 33,539 Debt securit ies in issue 22 1 – 13,730 13,731 – 13,731 Short posit ions 14,527 – – 14,527 – 14,527 Other liab il it ies – – – – – – 15,453 – 70,009 85,462 – 85,462 Derivat ive ﬁnancial instruments 14 80,037 2,027 – 82,064 – 82,064 Deposits by banks – – – – 25,400 25,400 Customer accounts – – – – 464,489 464,489 Repurchase agreements and other sim ilar secured borrowing 16 – – – – 12,132 12,132 Debt securit ies in issue 22 – – – – 64,609 64,609 Other liab il it ies 23 – – – – 44,047 44,047 Subordinated liab il it ies and other borrowed funds 27 – – – – 10,382 10,382 Liab il it ies included in disposal groups held for sale 21 – – – – 360 360 Total at 31 December 2024 95,490 2,027 70,009 167,526 621,419 788,945 Financ ial l iab il it ies held at fa ir value through proﬁt or loss Deposits by banks – – 1,894 1,894 – 1,894 Customer accounts 39 – 17,209 17,248 – 17,248 Repurchase agreements and other sim ilar secured borrowing 16 1,660 – 39,623 41,283 – 41,283 Debt securit ies in issue 22 – – 10,817 10,817 – 10,817 Short posit ions 11,846 – – 11,846 – 11,846 Other liab il it ies – – 8 8 – 8 13,545 – 69,551 83,096 – 83,096 Derivat ive ﬁnancial instruments 14 52,747 3,314 – 56,061 – 56,061 Deposits by banks – – – – 28,030 28,030 Customer accounts – – – – 469,418 469,418 Repurchase agreements and other sim ilar secured borrowing 16 – – – – 12,258 12,258 Debt securit ies in issue 22 – – – – 62,546 62,546 Other liab il it ies 23 – – – – 38,663 38,663 Subordinated liab il it ies and other borrowed funds 27 – – – – 12,036 12,036 Liab il it ies included in disposal groups held for sale 21 – – – – 726 726 Total at 31 December 2023 66,292 3,314 69,551 139,157 623,677 762,834 Offsetting of ﬁnanc ial instruments Financ ial assets and l iab il it ies are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intent ion to settle on a net bas is, or to realise the asset and settle the liab il ity simultaneously. In practice, for credit mit igat ion, the Group is able to offset assets and liab il it ies wh ich do not meet the IAS 32 netting criter ia set out below. Such arrangements include master netting arrangements for derivat ives and global master repurchase agreements for repurchase and reverse repurchase transactions. These agreements generally allow that all outstanding transactions with a particular counterparty can be offset but only in the event of default or other predetermined events. In addit ion, the Group also rece ives and pledges readily realisable collateral for derivat ive transact ions to cover net exposure in the event of a default. Under repurchase and reverse repurchase agreements the Group pledges (legally sells) and obtains (legally purchases) respectively, highly liqu id assets wh ich can be sold in the event of a default. 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 319 The following tables set out the impact of netting on the balance sheet. This comprises derivat ive transact ions settled through an enforceable netting agreement where we have the intent and abil ity to settle net and wh ich are offset on the balance sheet. Net amounts Related amount not offset Gross amounts of ﬁnancial in the balance sheet of recognised Impact of instruments ﬁnancial offset in the presented in the Financ ial Financ ial instruments balance sheet balance sheet instruments collateral Net amount $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion At 31 December 2024 Derivat ive ﬁnancial instruments 97,902 (16,430) 81,472 (60,280) (15,005) 6,187 Reverse repurchase agreements and other sim ilar secured lend ing 137,115 (38,314) 98,801 – (98,801) – Total Assets 235,017 (54,744) 180,273 (60,280) (113,806) 6,187 Derivat ive ﬁnancial instruments 98,494 (16,430) 82,064 (60,280) (11,046) 10,738 Repurchase agreements and other sim ilar secured borrow ing 83,985 (38,314) 45,671 – (45,671) – Total Liab il it ies 182,479 (54,744) 127,735 (60,280) (56,717) 10,738 At 31 December 2023 Derivat ive ﬁnancial instruments 99,929 (49,495) 50,434 (39,293) (8,440) 2,701 Reverse repurchase agreements and other sim ilar secured lend ing 109,413 (11,832) 97,581 – (97,581) – Total Assets 209,342 (61,327) 148,015 (39,293) (106,021) 2,701 Derivat ive ﬁnancial instruments 105,556 (49,495) 56,061 (39,293) (10,337) 6,431 Repurchase agreements and other sim ilar secured borrow ing 65,373 (11,832) 53,541 – (53,541) – Total Liab il it ies 170,929 (61,327) 109,602 (39,293) (63,878) 6,431 Related amounts not offset in the balance sheet comprises: • Financ ial instruments not offset in the balance sheet but covered by an enforceable netting arrangement. This comprises master netting arrangements held against derivat ive ﬁnancial instruments and excludes the effect of over-collateralisat ion • Financ ial instruments where a legal opin ion ev idenc ing enforceab il ity of the r ight of offset may not have been sought, or may have been unable to obtain such opin ion • Financ ial collateral compr ises cash collateral pledged and received for derivat ive ﬁnancial instruments and collateral bought and sold for reverse repurchase and repurchase agreements respectively and excludes the effect of over-collateralisat ion Financ ial l iab il it ies des ignated at fair value through proﬁt or loss 2024 2023 $mill ion $mill ion Carrying Balance aggregate fair value 70,009 69,551 Amount Contractually obliged to repay at maturity 70,166 71,240 Difference between aggregate fair value and contractually obliged to repay at maturity (157) (1,689) Cumulative change in Fair Value accredited to Credit Risk Difference (276) 156 The net fair value loss on ﬁnanc ial l iab il it ies des ignated at fair value through proﬁt or loss was $3,252 mill ion for the year (31 December 2023: net loss of $2,649 mill ion). Further details of the Group’s own credit adjustment (OCA) valuation technique is described later in this Note. Valuation of ﬁnanc ial instruments The Valuation Methodology function is responsible for independent price verif icat ion, oversight of fair value and appropriate value adjustments and escalation of valuation issues. Independent price verif icat ion is the process of determin ing that the valuations incorporated into the ﬁnanc ial statements are val idated independent of the business area responsible for the product. The Valuation Methodology function has oversight of the fair value adjustments to ensure the ﬁnanc ial instruments are priced to exit. These are key controls in ensuring the material accuracy of the valuations incorporated in the ﬁnanc ial statements. The market data used for price verif icat ion (PV) may include data sourced from recent trade data involv ing external counterparties or third parties such as Bloomberg, Reuters, brokers and consensus pric ing prov iders. The Valuation Methodology function performs an ongoing review of the market data sources that are used as part of the PV and fair value processes which are formally documented on a semi-annual basis detail ing the su itab il ity of the market data used for price testing. Price verif icat ion uses independently sourced data that is deemed most representative of the market the instruments trade in. To determine the quality of the market data inputs, factors such as independence, relevance, reliab il ity, availab il ity of multiple data sources and methodology employed by the pric ing prov ider are taken into considerat ion. The Valuation and Benchmarks Committee (VBC) is the valuation governance forum consist ing of representat ives from Group Market Risk, Product Control, Valuation Methodology and the business, which meets monthly to discuss and approve the independent valuations of the inventory. For Princ ipal F inance, the Investment Committee meeting is held on a quarterly basis to review investments and valuations. 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 320 Standard Chartered – Annual Report 2024 Sign iﬁcant account ing estimates and judgements The Group evaluates the sign iﬁcance of ﬁnancial instruments and material accuracy of the valuations incorporated in the ﬁnancial statements as they involve a high degree of judgement and estimat ion uncerta inty in determin ing the carry ing values of ﬁnancial assets and l iab il it ies at the balance sheet date. • Fair value of ﬁnanc ial instruments is determined using valuation techniques and estimates (see below) which, to the extent possible, use market observable inputs, but in some cases use non-market observable inputs. Changes in the observabil ity of s ign iﬁcant valuat ion inputs can materially affect the fair values of ﬁnanc ial instruments • When establish ing the ex it price of a ﬁnanc ial instrument using a valuation technique, the Group estimates valuation adjustments in determin ing the fa ir value (page 320) • In determin ing the valuat ion of ﬁnanc ial instruments, the Group makes judgements on the amounts reserved to cater for model and valuation risks, which cover both Level 2 and Level 3 assets, and the sign iﬁcant valuat ion judgements in respect of Level 3 instruments (page 325) • Where the estimated measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based on models that use a sign iﬁcant degree of non-market-based unobservable inputs Valuation techniques Refer to the fair value hierarchy explanation – Level 1, 2 and 3 (page 322) • Financ ial instruments held at fair value – Debt securit ies – asset-backed secur it ies: Asset-backed securit ies are valued based on external pr ices obtained from consensus pric ing prov iders, broker quotes, recent trades, arrangers’ quotes, etc. Where an observable price is available for a given security, it is classif ied as Level 2. In instances where third-party prices are not available or reliable, the security is classif ied as Level 3. The fa ir value of Level 3 securit ies is estimated using market standard cash ﬂow models with input parameter assumptions which include prepayment speeds, default rates, discount margins derived from comparable securit ies w ith sim ilar v intage, collateral type, and credit ratings. – Debt securit ies in issue: These debt securit ies relate to structured notes issued by the Group. Where independent market data is available through pric ing vendors and broker sources these pos it ions are class if ied as Level 2. Where such l iqu id external prices are not available, valuations of these debt securit ies are impl ied us ing input parameters such as bond spreads and credit spreads, and are classif ied as Level 3. These input parameters are determined with reference to the same issuer (if available) or proxies from comparable issuers or assets. – Derivat ives: Derivat ive products are class if ied as Level 2 if the valuation of the product is based upon input parameters which are observable from independent and reliable market data sources. Derivat ive products are class if ied as Level 3 if there are sign iﬁcant valuat ion input parameters which are unobservable in the market, such as products where the performance is linked to more than one underlying variable. Examples are foreign exchange basket options, equity options based on the performance of two or more underlying ind ices and interest rate products with quanto payouts. In most cases these unobservable correlation parameters cannot be impl ied from the market, and methods such as h istor ical analys is and comparison with histor ical levels or other benchmark data must be employed. – Equity shares – unlisted equity investments: The majority of unl isted equity investments are valued based on market multiples, includ ing Pr ice to Book (P/B), Price-to-Earnings (P/E) or enterprise value to earnings before income tax, depreciat ion and amort isat ion (EV/EBITDA) rat ios of comparable listed companies. The primary inputs for the valuation of these investments are the actual ﬁnanc ials or forecasted earn ings of the investee companies and market multiples obtained from the comparable listed companies. To ensure comparabil ity between these unquoted investments and the comparable listed companies, appropriate adjustments are also applied (for example, liqu id ity and size) in the valuation. In circumstances where an investment does not have direct comparables or where the multiples for the comparable companies cannot be sourced from reliable external sources, alternative valuation techniques (for example, discounted cash ﬂow model or net asset value (“NAV”) or option pric ing model), wh ich use predominantly unobservable inputs or Level 3 inputs, may be applied. Even though market multiples for the comparable listed companies can be sourced from third-party sources (for example, Bloomberg), and those inputs can be deemed Level 2 inputs, all unlisted investments (excluding those where observable inputs are available, for example, over-the-counter (OTC) prices) are classif ied as Level 3 on the basis that the valuation methods involve judgements ranging from determin ing comparable compan ies to discount rates where the discounted cash ﬂow method is applied. – Loans and advances: These primar ily include loans in the FM Bond and Loan Syndicat ion bus iness which were not fully syndicated as of the balance sheet date and other ﬁnanc ing transact ions with in F inanc ial Markets, and loans and advances includ ing reverse repurchase agreements that do not have SPPI cashﬂows or are managed on a fa ir value basis. Where available, loan valuation is based on observable clean sales transactions prices or market observable spreads. If observable credit spreads are not available, proxy spreads based on comparables with sim ilar cred it grade, sector and region, are used. Where observable transaction prices, credit spreads and market standard proxy methods are available, these loans are classif ied as Level 2. Where there are no recent transact ions or comparables, these loans are classif ied as Level 3. – Other debt securit ies: These debt securit ies include convertible bonds, corporate bonds, credit and structured notes. Where quoted prices are available through pric ing vendors, brokers or observable trad ing activ it ies from liqu id markets, these are classif ied as Level 2 and valued us ing such quotes. Where there are sign iﬁcant valuat ion inputs which are unobservable in the market, due to ill iqu id trading or the complexity of the product, these are classif ied as Level 3. The valuations of these debt securit ies are impl ied us ing input parameters such as bond spreads and credit spreads. These input parameters are determined with reference to the same issuer (if available) or proxied from comparable issuers or assets 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 321 • Financ ial instruments held at amortised cost The following sets out the Group’s basis for establish ing fa ir values of amortised cost ﬁnanc ial instruments and their classif icat ion between Levels 1, 2 and 3. As certain categories of ﬁnanc ial instruments are not actively traded, there is a sign iﬁcant level of management judgement involved in calculating the fair values: – Cash and balances at central banks: The fair value of cash and balances at central banks is their carrying amounts – Debt securit ies in issue, subordinated liab il it ies and other borrowed funds: The aggregate fair values are calculated based on quoted market prices. For those notes where quoted market prices are not available, a discounted cash ﬂow model is used based on a current market related yield curve appropriate for the remain ing term to matur ity – Deposits and borrowings: The estimated fair value of deposits with no stated maturity is the amount repayable on demand. The estimated fair value of ﬁxed interest-bearing deposits and other borrowings without quoted market prices is based on discounted cash ﬂows using the prevail ing market rates for debts w ith a sim ilar Cred it Risk and remain ing maturity – Investment securit ies: For investment securit ies that do not have d irectly observable market values, the Group util ises a number of valuation techniques to determine fair value. Where available, securit ies are valued us ing input proxies from the same or closely related underlying (for example, bond spreads from the same or closely related issuer) or input proxies from a different underlying (for example, a sim ilar bond but us ing spreads for a particular sector and rating). Certain instruments cannot be proxies as set out above, and in such cases the posit ions are valued us ing non-market observable inputs. This includes those instruments held at amortised cost and predominantly relates to asset-backed securit ies. The fair value for such instruments is usually proxies from internal assessments of the underlying cash ﬂows – Loans and advances to banks and customers: For loans and advances to banks, the fair value of ﬂoating rate placements and overnight deposits is their carrying amounts. The estimated fair value of ﬁxed interest-bearing deposits is based on discounted cash ﬂows using the prevail ing money market rates for debts w ith a sim ilar Cred it Risk and remain ing matur ity. The Group’s loans and advances to customers’ portfolio is well divers iﬁed by geography and industry. Approximately a quarter of the portfolio re-prices with in one month, and approx imately half re-prices with in 12 months. Loans and advances are presented net of provis ions for impa irment. The fa ir value of loans and advances to customers with a residual maturity of less than one year generally approximates the carrying value. The estimated fair value of loans and advances with a residual maturity of more than one year represents the discounted amount of future cash ﬂows expected to be received, includ ing assumpt ions relating to prepayment rates and Credit Risk. Expected cash ﬂows are discounted at current market rates to determine fair value. The Group has a wide range of ind iv idual instruments with in its loans and advances portfolio and as a result provid ing quant if icat ion of the key assumptions used to value such instruments is impract ical – Other assets: Other assets comprise primar ily of cash collateral and trades pend ing settlement. The carrying amount of these ﬁnancial instruments is considered to be a reasonable approximat ion of fa ir value as they are either short-term in nature or re-price to current market rates frequently Fair value adjustments When establish ing the ex it price of a ﬁnanc ial instrument using a valuation technique, the Group considers adjustments to the modelled price which market partic ipants would make when pr ic ing that instrument. The main valuation adjustments (described further below) in determin ing fa ir value for ﬁnanc ial assets and ﬁnancial l iab il it ies are as follows: Movement Movement 01.01.24 during the year 31.12.24 01.01.23 during the year 31.12.23 $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Bid-offer valuation adjustment 115 2 117 118 (3) 115 Credit valuation adjustment 119 15 134 171 (52) 119 Debit valuation adjustment (129) 24 (105) (112) (17) (129) Model valuation adjustment 4 1 5 3 1 4 Funding valuation adjustment 33 8 41 46 (13) 33 Other fair value adjustments 25 1 26 23 2 25 Total 167 51 218 249 (82) 167 Income deferrals Day 1 and other deferrals 109 29 138 186 (77) 109 Total 109 29 138 186 (77) 109 Note: Bracket represents an asset and credit to the income statement • Bid-offer valuation adjustment: Generally, market parameters are marked on a mid-market basis in the revaluation systems, and a bid-offer valuation adjustment is required to quantify the expected cost of neutralis ing the bus iness’ posit ions through dealing away in the market, thereby bring ing long pos it ions to b id and short posit ions to offer. The methodology to calculate the bid-offer adjustment for a derivat ive portfol io involves netting between long and short posit ions and the group ing of risk by strike and tenor based on the hedging strategy where long posit ions are marked to b id and short posit ions marked to offer in the systems. 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 322 Standard Chartered – Annual Report 2024 • Credit valuation adjustment (CVA): The Group accounts for CVA against the fair value of derivat ive products. CVA is an adjustment to the fair value of the transactions to reﬂect the possib il ity that our counterparties may default and we may not receive the full market value of the outstanding transactions. It represents an estimate of the adjustment a market partic ipant would include when deriv ing a purchase pr ice to acquire our exposures. CVA is calculated for each subsid iary, and with in each ent ity for each counterparty to which the entity has exposure and takes account of any collateral we may hold. The Group calculates the CVA by using estimates of future posit ive exposure, market- impl ied probab il ity of default (PD) and recovery rates. Where market-impl ied data is not readily available, we use market-based proxies to estimate the PD. Wrong- way risk occurs when the exposure to a counterparty is adversely correlated with the credit quality of that counterparty, and the Group has implemented a model to capture this impact for key wrong-way exposures. The Group also captures the uncertaint ies assoc iated with wrong-way risk in the Group’s Prudential Valuation Adjustments framework. • Debit valuation adjustment (DVA): The Group calculates DVA adjustments on its derivat ive l iab il it ies to reﬂect changes in its own credit standing. The Group’s DVA adjustments will increase if its credit standing worsens and conversely, decrease if its credit standing improves. For derivat ive l iab il it ies, a DVA adjustment is determined by applying the Group’s probabil ity of default to the Group’s negative expected exposure against the counterparty. The Group’s probabil ity of default and loss expected in the event of default is derived based on bond and CDS spreads associated with the Group’s issuances and market standard recovery levels. The expected exposure is modelled based on the simulat ion of the underly ing risk factors over the expected life of the deal. This simulat ion methodology incorporates the collateral posted by the Group and the effects of master netting agreements. • Model valuation adjustment: Valuation models may have pric ing deﬁcienc ies or lim itat ions that require a valuation adjustment. These pric ing deﬁcienc ies or lim itat ions arise due to the choice, implementat ion and cal ibrat ion of the pr ic ing model. • Funding valuation adjustment (FVA): The Group makes FVA adjustments against derivat ive products, includ ing embedded derivat ives. FVA reﬂects an est imate of the adjustment to its fair value that a market partic ipant would make to incorporate funding costs or beneﬁts that could arise in relation to the exposure. FVA is calculated by determin ing the net expected exposure at a counterparty level and then applying a funding rate to those exposures that reﬂect the market cost of funding. The FVA for uncollateralised (includ ing part ially collateralised) derivat ives incorporates the estimated present value of the market funding cost or beneﬁt associated with funding these transactions. • Other fair value adjustments: The Group calculates the fair value on the interest rate callable products by calibrat ing to a set of market prices with differ ing matur ity, expiry and strike of the trades. • Day one and other deferrals: In certain circumstances the in it ial fair value is based on a valuation technique which differs to the transaction price at the time of in it ial recognit ion. However, these ga ins can only be recognised when the valuation technique used is based primar ily on observable market data. In those cases where the in it ially recognised fair value is based on a valuation model that uses inputs which are not observable in the market, the difference between the transaction price and the valuation model is not recognised immed iately in the income statement. The difference is amortised to the income statement until the inputs become observable, or the transaction matures or is terminated. Other deferrals primar ily represent adjustments taken to reﬂect the specif ic terms and cond it ions of certa in derivat ive contracts wh ich affect the terminat ion value at the measurement date. In addit ion, the Group calculates own cred it adjustment (OCA) on its issued debt designated at fair value, includ ing structured notes, in order to reﬂect changes in its own credit standing. Issued debt is discounted util is ing the spread at which sim ilar instruments would be issued or bought back at the measurement date as this reﬂects the value from the perspective of a market partic ipant who holds the ident ical item as an asset. OCA measures the difference between the fair value of issued debt as of reporting date and theoretical fair values of issued debt adjusted up or down for changes in own credit spreads from incept ion date to the measurement date. Under IFRS 9 the change in the OCA component is reported under other comprehensive income. The Group’s OCA reserve will increase if its credit standing worsens in comparison to the incept ion of the trade and, conversely, decrease if its credit standing improves. The Group’s OCA reserve will reverse over time as its liab il it ies mature. Fair value hierarchy – ﬁnanc ial instruments held at fair value The fair values of quoted ﬁnanc ial assets and l iab il it ies in active markets are based on current prices. A market is regarded as active if transactions for the asset or liab il ity take place with sufﬁc ient frequency and volume to prov ide pric ing informat ion on an ongoing basis. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets for ident ical instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor liqu id ity, fair values have been determined using valuation techniques which, to the extent possible, use market observable inputs, but in some cases use unobservable inputs.. Valuation techniques used include discounted cash ﬂow analysis and pric ing models and, where appropriate, comparison with instruments that have characterist ics s im ilar to those of the instruments held by the Group. Assets and liab il it ies carr ied at fair value or for which fair values are disclosed have been classif ied into three levels according to the observabil ity of the s ign iﬁcant inputs used to determine the fair values. Changes in the observabil ity of s ign iﬁcant valuat ion inputs during the reporting period may result in a transfer of assets and liab il it ies w ith in the fa ir value hierarchy. The Group recognises transfers between levels of the fair value hierarchy when there is a sign iﬁcant change in either its princ ipal market or the level of observabil ity of the inputs to the valuation techniques as at the end of the reporting period. • Level 1: Fair value measurements are those derived from unadjusted quoted prices in active markets for ident ical assets or liab il it ies. • Level 2: Fair value measurements are those with quoted prices for sim ilar instruments in active markets or quoted prices for ident ical or s im ilar instruments in inact ive markets and ﬁnancial instruments valued using models where all sign iﬁcant inputs are observable. • Level 3: Fair value measurements are those where inputs which could have a sign iﬁcant effect on the instrument’s valuation are not based on observable market data. 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 323 The following tables show the classif icat ion of ﬁnanc ial instruments held at fair value into the valuation hierarchy: 2024 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Financ ial instruments held at fair value through proﬁt or loss Loans and advances to banks – 2,213 – 2,213 – 2,265 – 2,265 Loans and advances to customers – 5,147 1,937 7,084 – 5,252 1,960 7,212 Reverse repurchase agreements and other sim ilar secured lend ing 19 82,937 3,239 86,195 – 79,484 2,363 81,847 Debt securit ies and other el ig ible b ills 32,331 42,615 1,593 76,539 27,055 24,635 1,262 52,952 Of which: Issued by Central banks & Governments 30,278 13,355 9 43,642 23,465 6,557 – 30,022 Issued by corporates other than ﬁnancial inst itut ions 1 7 4,860 399 5,266 4 4,062 346 4,412 Issued by ﬁnancial inst itut ions 1 2,046 24,400 1,185 27,631 3,586 14,016 916 18,518 Equity shares 5,287 8 191 5,486 2,386 370 184 2,940 Derivat ive ﬁnancial instruments 386 80,958 128 81,472 954 49,400 80 50,434 Of which: Foreign exchange 140 72,870 37 73,047 129 42,414 25 42,568 Interest rate 27 6,296 80 6,403 37 6,293 6 6,336 Credit – 388 9 397 – 438 47 485 Equity and stock index options – 349 2 351 – 73 2 75 Commodity 219 1,055 – 1,274 788 182 – 970 Investment securit ies Debt securit ies and other el ig ible b ills 50,249 38,176 – 88,425 55,060 48,196 72 103,328 Of which: Issued by Central banks & Governments 41,395 16,916 – 58,311 47,225 18,983 51 66,259 Issued by corporates other than ﬁnancial inst itut ions 1 – 490 – 490 820 3,236 – 4,056 Issued by ﬁnancial inst itut ions 1 8,854 20,770 – 29,624 7,015 25,977 21 33,013 Equity shares 27 2 965 994 199 6 787 992 Other Assets – – – – – – 6 6 Total assets at 31 December 2 88,299 252,056 8,053 348,408 85,654 209,608 6,714 301,976 Liab il it ies Financ ial instruments held at fair value through proﬁt or loss Deposits by banks – 1,522 371 1,893 – 1,560 334 1,894 Customer accounts – 19,058 2,714 21,772 – 15,970 1,278 17,248 Repurchase agreements and other sim ilar secured borrow ing – 33,539 – 33,539 – 41,283 – 41,283 Debt securit ies in issue – 12,317 1,414 13,731 – 9,776 1,041 10,817 Short posit ions 8,789 5,558 180 14,527 7,152 4,591 103 11,846 Derivat ive ﬁnancial instruments 419 81,387 258 82,064 749 55,116 196 56,061 Of which: Foreign exchange 183 69,684 8 69,875 122 45,314 10 45,446 Interest rate 14 8,586 23 8,623 46 8,262 5 8,313 Credit – 2,131 189 2,320 – 945 162 1,107 Equity and stock index options – 157 37 194 – 147 19 166 Commodity 222 829 1 1,052 581 448 – 1,029 Other Liab il it ies – – – – – – 8 8 Total liab il it ies at 31 December 9,208 153,381 4,937 167,526 7,901 128,296 2,960 139,157 1 Includes covered bonds of $3,727 mill ion (2023: $7,509 m ill ion), secur it ies issued by Multilateral Development Banks/International Organisat ions of $10,679 m ill ion (2023: $24,192 mill ion), and State-owned agenc ies and development banks of $16,759 mill ion(2023: $7,564 m ill ion) 2 The table above does not include held for sale assets of $5 mill ion (2023: $n il) .These are reported in Note 21 together with their fair value hierarchy The fair value of ﬁnanc ial assets and ﬁnancial l iab il it ies class if ied as Level 2 in the fair value hierarchy that are subject to complex modelling techniques is $739 mill ion (2023: $940 m ill ion) and $320 m ill ion (2023: $288 m ill ion) respect ively. There were no sign iﬁcant changes to valuat ion or levelling approaches in 2024. There were no sign iﬁcant transfers of ﬁnancial assets and l iab il it ies measured at fa ir value between Level 1 and Level 2 during the year. 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 324 Standard Chartered – Annual Report 2024 Fair value hierarchy – ﬁnanc ial instruments measured at amortised cost The following table shows the carrying amounts and incorporates the Group’s estimate of fair values of those ﬁnanc ial assets and liab il it ies not presented on the Group’s balance sheet at fa ir value. These fair values may be different from the actual amount that will be received or paid on the settlement or maturity of the ﬁnanc ial instrument. For certain instruments, the fair value may be determined using assumptions for which no observable prices are available. 2024 2023 Carrying Fair value Carrying Fair value value Level 1 Level 2 Level 3 Total value Level 1 Level 2 Level 3 Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Assets Cash and balances at central banks¹ 63,447 – 63,447 – 63,447 69,905 – 69,905 – 69,905 Loans and advances to banks 43,593 – 43,430 165 43,595 44,977 – 44,921 – 44,921 of which – reverse repurchase agreements and other sim ilar secured lending 2,946 – 2,948 – 2,948 1,738 – 1,738 – 1,738 Loans and advances to customers 281,032 – 40,582 238,986 279,568 286,975 – 53,472 226,211 279,683 of which – reverse repurchase agreements and other sim ilar secured lending 9,660 – 9,618 42 9,660 13,996 – 13,827 169 13,996 Investment securit ies² 55,137 – 53,050 24 53,074 56,935 – 54,419 33 54,452 Other assets¹ 34,585 – 34,585 – 34,585 38,140 – 38,140 – 38,140 Assets held for sale 884 58 353 473 884 701 101 541 59 701 Total assets at 31 December 478,678 58 235,447 239,648 475,153 497,633 101 261,398 226,303 487,802 Liab il it ies Deposits by banks 25,400 – 25,238 – 25,238 28,030 – 28,086 – 28,086 Customer accounts 464,489 – 461,549 – 461,549 469,418 – 460,224 – 460,224 Repurchase agreements and other sim ilar secured borrowing 12,132 – 12,133 – 12,133 12,258 – 12,258 – 12,258 Debt securit ies in issue 64,609 32,209 32,181 – 64,390 62,546 31,255 30,859 – 62,114 Subordinated liab il it ies and other borrowed funds 10,382 9,599 429 – 10,028 12,036 11,119 336 – 11,455 Other liab il it ies¹ 44,047 – 44,047 – 44,047 38,663 – 38,663 – 38,663 Liab il it ies held for sale 360 89 271 – 360 726 54 672 – 726 Total liab il it ies at 31 December 621,419 41,897 575,848 – 617,745 623,677 42,428 571,098 – 613,526 1 The carrying amount of these ﬁnanc ial instruments is considered to be a reasonable approximat ion of fa ir value as they are short-term in nature or reprice to current market rates frequently 2 Includes Government bonds and Treasury bills of $23,150 mill ion at 31 December 2024 (31 December 2023: $19,422 m ill ion) Loans and advances to customers by client segment 1 2024 2023 Carrying value Fair value Carrying value Fair value Stage 1 Stage 1 Stage 1 Stage 1 and and and and Stage 3 stage 2 Total Stage 3 stage 2 Total Stage 3 stage 2 Total Stage 3 stage 2 Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Corporate & Investment Banking 1,298 137,006 138,304 1,174 137,234 138,408 1,975 128,430 130,405 1,910 125,841 127,751 Wealth & Retail Banking 858 118,390 119,248 858 116,823 117,681 724 125,335 126,059 721 120,701 121,422 Ventures 1 1,388 1,389 – 1,388 1,388 – 1,033 1,033 – 1,032 1,032 Central & other items 98 21,993 22,091 98 21,993 22,091 209 29,269 29,478 209 29,269 29,478 At 31 December 2,255 278,777 281,032 2,130 277,438 279,568 2,908 284,067 286,975 2,840 276,843 279,683 1 Loans and advances includes reverse repurchase agreements and other sim ilar secured lend ing: carrying value $9,660 mill ion and fa ir value $9,660 mill ion (31 December 2023: $13,996 mill ion and $13,996 m ill ion respect ively) 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 325 Fair value of ﬁnanc ial instruments Level 3 Summary and sign iﬁcant unobservable inputs The following table presents the Group’s primary Level 3 ﬁnanc ial instruments which are held at fair value. The table also presents the valuation techniques used to measure the fair value of those ﬁnanc ial instruments, the sign iﬁcant unobservable inputs, the range of values for those inputs and the weighted average of those inputs: Value as at 31 December 2024 Assets Liab il it ies Princ ipal valuat ion Sign iﬁcant Weighted Instrument $mill ion $mill ion technique unobservable inputs Range 1 average 2 Loans and advances 1,937 – Discounted cash ﬂows Price/yield 1.0% – 100% 20.8% to customers Recovery rate 93.2% – 95.6% 95.1% Reverse repurchase agreements 3,239 – Discounted cash ﬂows Repo curve 2.0% – 7.6% 6.2% and other sim ilar secured lend ing Price/yield 2.3% – 10.5% 6.4% Debt securit ies, alternat ive tier 1,584 – Discounted cash ﬂows Price/yield 0.7% – 15.3% 6.9% one and other elig ible secur it ies Recovery rate 0.01% – 16.3% 9.2% Government bonds and 9 – Discounted cash ﬂows Price/yield 23.5% – 23.5% 23.5% treasury bills Equity shares (includes private 1,156 – Comparable EV/EBITDA multiples 5.3x – 18.1x 14.8x equity investments) pric ing/y ield EV/Revenue multiples 8.5x – 12.9x 9.0x P/E multiples 17.9x – 48.3x 46.9x P/B multiples 0.3x – 3.2x 1.3x P/S multiples 0.2x – 1.3x 0.2x Liqu id ity discount 10.0% – 30.0% 16.8% Discounted cash ﬂows Discount rates 8.3% – 20.4% 10.1% Option pric ing model Equity value based on 5.7x – 23.6x 16.2x EV/Revenue multiples Equity value based on 10.1x – 10.1x 10.1x EV/EBITDA multiples Equity value based on 30.2% – 50.0% 30.5% volatil ity Derivat ive ﬁnancial instruments of which: Foreign exchange 37 8 Option pric ing model Foreign exchange 10.2% – 46.2% 42.0% option impl ied volat il ity Interest rate curves 3.5% – 9.0% 4.2% Foreign exchange (0.03)% – 34.3% 6.1% curves Commodity – 1 Discounted cash ﬂows Commodity prices $383.0 – $391.0 $387.0 CM-CM correlation 73.7% – 97.9% 86.0% Interest rate 80 23 Discounted cash ﬂows Interest rate curves 3.5% – 43.9% 5.1% Option pric ing model Bond option impl ied 2.3% – 4.7% 3.5% volatil ity Credit 9 189 Discounted cash ﬂows Credit spreads 0.1% – 1.9% 0.9% Price/yield 4.8% – 6.6% 5.5% Equity and stock index 2 37 Internal pric ing model Equity-Equity correlation 44.9% – 100% 80.0% Equity-FX correlation (36.4)% – 48.9% 5.0% Deposits by banks – 371 Discounted cash ﬂows Credit spreads 0.2% – 3.5% 1.5% Customer accounts – 2,714 Internal pric ing model Equity-Equity correlation 44.9% – 100% 80.0% Equity-FX correlation (36.4)% – 48.9% 5.0% Discounted cash ﬂows Interest rate curves 1.4% – 4.4% 4.0% Price/yield 0.7% – 13.0% 8.5% Debt securit ies in issue – 1,414 Discounted cash ﬂows Credit spreads 0.05% – 2.0% 0.8% Price/yield 6.2% – 14.8% 12.7% Interest rate curves 3.5% – 4.4% 4.1% Internal pric ing model Equity-Equity correlation 44.9% – 100% 80.0% Equity-FX correlation (36.4)% – 48.9% 5.0% Option pric ing model Bond option impl ied 4.0% – 15% 12.5% volatil ity Short posit ions – 180 Discounted cash ﬂows Price/yield 5.9% – 12.7% 6.3% Total 8,053 4,937 1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 ﬁnanc ial instruments as at 31 December 2024. The ranges of values used are reﬂective of the underlying characterist ics of these Level 3 ﬁnancial instruments based on the market condit ions at the balance sheet date. However, these ranges of values may not represent the uncerta inty in fair value measurements of the Group’s Level 3 ﬁnancial instruments 2 Weighted average for non-derivat ive ﬁnancial instruments has been calculated by weight ing inputs by the relative fair value. Weighted average for derivat ives has been provided by weight ing inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful ind icator 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 326 Standard Chartered – Annual Report 2024 Value as at 31 December 2023 Assets Liab il it ies Princ ipal valuat ion Sign iﬁcant Weighted Instrument $mill ion $mill ion technique unobservable inputs Range 1 average 2 Loans and advances 1,960 – Discounted cash ﬂows Price/yield 1.7% – 100% 12.0% to customers Credit spreads 0.1% – 1.0% 0.6% Reverse repurchase 2,363 – Discounted cash ﬂows Repo curve 5.1% – 7.6% 6.3% agreements and other Price/yield (2.7)%- 10.3% 6.0% sim ilar secured lend ing Debt securit ies, alternat ive 1,283 – Discounted cash ﬂows Price/yield (14.0)% – 25.8% 10.1% tier one and other elig ible Recovery rates 0.1% – 1.0% 0.2% securit ies Internal pric ing model Equity-Equity correlation 44.1%-100% 80.7% Equity-FX correlation (35.9)%-45.5% 14.2% Government bonds and 51 – Discounted cash ﬂows Price/yield 17.7% – 21.8% 20.6% treasury bills Equity shares (includes private 971 – Comparable pric ing/y ield EV/EBITDA multiples 13.8x – 15.6x 14.9x equity investments) EV/Revenue multiples 9.3x – 30.9x 15.8x P/E multiples 10.6x – 51.8x 45.7x P/B multiples 0.3x – 2.7x 1.6x P/S multiples 0.2x – 1.6x 0.3x Liqu id ity discount 7.5% – 20.0% 15.1% Discounted cash ﬂows Discount rates 9.2% – 35.6% 17.0% Option pric ing model Equity value based on 8.4x – 42.5x 27.5x EV/Revenue multiples Equity value based on 3.1x – 3.1x 3.1x EV/EBITDA multiples Equity value based on 21.0% – 65.0% 30.1% volatil ity Other Assets 6 – NAV N/A N/A N/A Derivat ive ﬁnancial instruments of which: Foreign exchange 25 10 Option pric ing model Foreign exchange 0.5% – 51% 31.8% option impl ied volat il ity Discounted cash ﬂows Interest rate curves 3.6% – 5.8% 3.8% Foreign exchange 0.6% – 64.2% 12.8% curves Interest rate 6 5 Discounted cash ﬂows Interest rate curves 3.6% – 8.6% 5.0% Credit 47 162 Discounted cash ﬂows Credit spreads 1.0% – 1.0% 1.0% Price/yield 1.7% – 16.3% 8.6% Equity and stock index 2 19 Internal pric ing model Equity-Equity correlation 44.1% – 100% 80.7% – – Equity-FX correlation (35.9)% – 45.5% 14.2% Deposits by banks – 334 Discounted cash ﬂows Credit spreads 0.1% – 3.4% 1.9% Customer accounts – 1,278 Discounted cash ﬂows Credit spreads 1.0% – 2.0% 1.2% Interest rate curves 2.9% – 8.6% 6.1% Price/yield 4.8% – 15.2% 9.9% Internal pric ing model Equity-Equity correlation 44.1% – 100% 80.7% Equity-FX correlation (35.9)% – 45.5% 14.2% Debt securit ies in issue – 1,041 Discounted cash ﬂows Credit spreads 0.3% – 1.6% 1.1% Price/yield 6.6% – 20.9% 17.9% Interest rate curves 2.9% – 5.3% 4.4% Internal pric ing model Equity-Equity correlation 44.1% – 100% 80.7% Equity-FX correlation (35.9)% – 45.5% 14.2% Bond option impl ied 2.9% – 5.3% 4.4% volatil ity Short posit ion – 103 Discounted cash ﬂows Price/yield 7.1% – 7.1% 7.1% Other Liab il it ies – 8 Comparable pric ing/y ield EV/EBITDA multiples 5.8x – 11.2x 8.5x Total 6,714 2,960 1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 ﬁnanc ial instruments as at 31 December 2023. The ranges of values used are reﬂective of the underlying characterist ics of these Level 3 ﬁnancial instruments based on the market condit ions at the balance sheet date. However, these ranges of values may not represent the uncerta inty in fair value measurements of the Group’s Level 3 ﬁnancial instruments 2 Weighted average for non-derivat ive ﬁnancial instruments has been calculated by weight ing inputs by the relative fair value. Weighted average for derivat ives has been provided by weight ing inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful ind icator 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 327 The following section describes the sign iﬁcant unobservable inputs ident iﬁed in the valuation technique table: • Comparable price/yield is a valuation methodology in which the price of a comparable instrument is used to estimate the fair value where there are no direct observable prices. Yield is the interest rate that is used to discount the future cash ﬂows in a discounted cash ﬂow model. Valuation using comparable instruments can be done by calculating an impl ied y ield (or spread over a liqu id benchmark) from the pr ice of a comparable instrument, then adjust ing that y ield (or spread) to derive a value for the instrument. The adjustment should account for relevant differences in the ﬁnanc ial instruments such as maturity and/or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable instrument and the instrument being valued in order to establish the value of the instrument (for example, deriv ing a fa ir value for a junior unsecured bond from the pr ice of a senior secured bond). An increase in price, in isolat ion, would result in a favourable movement in the fair value of the asset. An increase in yield, in isolat ion, would result in an unfavourable movement in the fair value of the asset • Correlation is the measure of how movement in one variable inﬂuences the movement in another variable. An equity correlation is the correlation between two equity instruments, an interest rate correlation refers to the correlation between two swap rates, while commodity correlation is correlation between two commodity underlying prices • Commodity price curves is the term structure for forward rates over a specif ied per iod • Credit spread represents the addit ional y ield that a market partic ipant would demand for tak ing exposure to the Credit Risk of an instrument • Discount rate refers to the rate of return used to convert expected cash ﬂows into present value • Equity-FX correlation is the correlation between equity instrument and foreign exchange instrument • EV/EBITDA multiple is the ratio of Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciat ion and Amort isat ion (EBITDA). EV is the aggregate market capital isat ion and debt minus the cash and cash equivalents. An increase in EV/EBITDA multiple will result in a favourable movement in the fair value of the unlisted ﬁrm • EV/Revenue multiple is the ratio of Enterprise Value (EV) to Revenue. An increase in EV/Revenue multiple will result in a favourable movement in the fair value of the unlisted ﬁrm • Foreign exchange curves is the term structure for forward rates and swap rates between currency pairs over a specif ied per iod • Net asset value (NAV) is the value of an entity’s assets after deducting any liab il it ies • Interest rate curves is the term structure of interest rates and measures of future interest rates at a particular point in time • Liqu id ity discounts in the valuation of unlisted investments are primar ily appl ied to the valuation of unlisted ﬁrms’ investments to reﬂect the fact that these stocks are not actively traded. An increase in liqu id ity discount will result in an unfavourable movement in the fair value of the unlisted ﬁrm • Price-Earnings (P/E) multiple is the ratio of the market value of the equity to the net income after tax. An increase in P/E multiple will result in a favourable movement in the fair value of the unlisted ﬁrm • Price-Book (P/B) multiple is the ratio of the market value of equity to the book value of equity. An increase in P/B multiple will result in a favourable movement in the fair value of the unlisted ﬁrm • Price-Sales (P/S) multiple is the ratio of the market value of equity to sales. An increase in P/S multiple will result in a favourable movement in the fair value of the unlisted ﬁrm • Recovery rates is the expectation of the rate of return resulting from the liqu idat ion of a particular loan. As the probabil ity of default increases for a given instrument, the valuation of that instrument will increas ingly reﬂect its expected recovery level assuming default. An increase in the recovery rate, in isolat ion, would result in a favourable movement in the fair value of the loan • Repo curve is the term structure of repo rates on repos and reverse repos at a particular point in time • Volatil ity represents an estimate of how much a particular instrument, parameter or index will change in value over time. Generally, the higher the volatil ity, the more expens ive the option will be Financ ial statements Notes to the ﬁnancial statements 328 Standard Chartered – Annual Report 2024 13. Financ ial instruments continued Level 3 movement tables – ﬁnancial assets The table below analyses movements in Level 3 ﬁnanc ial assets carr ied at fair value. Assets Held at fair value through proﬁt or loss Investment securit ies Reverse repurchase Debt Debt agreements securit ies, securit ies, and other alternative alternative Loans and Loans and sim ilar tier one Derivat ive tier one advances advances to secured and other Equity Other ﬁnancial and other Equity to banks customers lending elig ible b ills shares Assets instruments elig ible b ills shares Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion At 01 January 2024 – 1,960 2,363 1,262 184 6 80 72 787 6,714 Total (losses)/gains recognised in income statement (1) 8 73 (114) (15) – (57) – – (106) Net trading income (1) 8 73 (56) (15) – (57) – – (48) Other operating income – – – (58) – – – – – (58) Total (losses)/gains recognised in other comprehensive income (OCI) – – – – – – – (11) 50 39 Fair value through OCI reserve – – – – – – – – 74 74 Exchange difference – – – – – – – (11) (24) (35) Purchases – 1,853 6,161 1,337 24 – 227 – 145 9,747 Sales – (2,062) (4,716) (907) (2) – (160) – (19) (7,866) Settlements (7) (42) (782) – – – – – – (831) Transfers out 1 (13) (263) – (1) – (6) (1) (61) (2) (347) Transfers in 2 21 483 140 16 – – 39 – 4 703 At 31 December 2024 – 1,937 3,239 1,593 191 – 128 – 965 8,053 Recognised in the income statement 3 – 7 1 7 (13) – (9) – – (7) At 01 January 2023 21 1,805 1,998 1,153 182 7 44 – 655 5,865 Total (losses)/gains recognised in income statement – (35) (107) (292) 4 (1) 12 – – (419) Net trading income – (35) (107) (304) 5 – 12 – – (429) Other operating income – – – 12 (1) (1) – – – 10 Total (losses)/gains recognised in other comprehensive income (OCI) – – – – – – – (1) 101 100 Fair value through OCI reserve – – – – – – – – 108 108 Exchange difference – – – – – – – (1) (7) (8) Purchases 22 1,784 5,902 1,082 8 – 189 21 61 9,069 Sales (22) (1,133) (3,942) (518) (10) – (115) (23) (5) (5,768) Settlements – (442) (1,488) (305) – – (25) – – (2,260) Transfers out 1 (21) (225) – (6) – – (27) (16) (32) (327) Transfers in 2 – 206 – 148 – – 2 91 7 454 At 31 December 2023 – 1,960 2,363 1,262 184 6 80 72 787 6,714 Recognised in the income statement 3 – (3) 3 (1) 4 – (12) – – (9) 1 Transfers out includes loans and advances, debt securit ies, alternat ive tier one and other elig ible b ills, equity shares, other assets and derivat ive ﬁnancial instruments where the valuation parameters became observable during the period and were transferred to Level 1 and Level 2 2 Transfers in primar ily relate to loans and advances, repurchase agreements, debt secur it ies, alternat ive tier one and other elig ible b ills, equity shares and derivat ive ﬁnancial instruments where the valuation parameters become unobservable during the year 3 Represents Total unrealised (losses)/gains recognised in the income statement, with in net trad ing income, relating to change in fair value of assets 13. Financ ial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 329 Level 3 movement tables – ﬁnancial l iab il it ies Debt Derivat ive Deposits Customer securit ies ﬁnancial Short Other by banks accounts in issue instruments posit ions liab il it ies Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion At 01 January 2024 334 1,278 1,041 196 103 8 2,960 Total losses/(gains) recognised in income statement – net trading income 49 (27) 48 (6) 3 (8) 59 Issues 388 3,068 4,244 507 177 – 8,384 Settlements (400) (1,627) (2,795) (438) (103) – (5,363) Transfers out 1 – (26) (1,194) (7) – – (1,227) Transfers in 2 – 48 70 6 – – 124 At 31 December 2024 371 2,714 1,414 258 180 – 4,937 Recognised in the income statement 3 29 5 2 (13) – – 23 At 01 January 2023 288 972 451 121 40 6 1,878 Total losses/(gains) recognised in income statement – net trading income 7 (6) 39 (52) 3 3 (6) Issues 628 1,789 1,489 447 100 – 4,453 Settlements (585) (1,491) (1,218) (312) (40) – (3,646) Transfers out 1 (4) (9) (85) (11) – (1) (110) Transfers in 2 – 23 365 3 – – 391 At 31 December 2023 334 1,278 1,041 196 103 8 2,960 Recognised in the income statement 3 – (21) 6 (47) – – (62) 1 Transfers out during the year primar ily relate to customer accounts, debt secur it ies in issue and derivat ive ﬁnancial instruments where the valuation parameters became observable during the year and were transferred to Level 2 ﬁnanc ial l iab il it ies 2 Transfers in during the year primar ily relate to customer accounts, debt secur it ies in issue and derivat ive ﬁnancial instruments where the valuation parameters become unobservable during the year 3 Represents Total unrealised losses/(gains) recognised in the income statement, with in net trad ing income, relating to change in fair value of liab il it ies 13. Financ ial instruments continued Financ ial statements Notes to the ﬁnancial statements 330 Standard Chartered – Annual Report 2024 Sensit iv it ies in respect of the fair values of Level 3 assets and liab il it ies Sensit iv ity analysis is performed on products with sign iﬁcant unobservable inputs. The Group applies a 10 per cent increase or decrease on the values of these unobservable inputs, to generate a range of reasonably possible alternative valuations. The percentage shift is determined by statist ical analys is performed on a set of reference prices based on the composit ion of the Group’s Level 3 inventory as the measurement date. Favourable and unfavourable changes (which show the balance adjusted for input change) are determined on the basis of changes in the value of the instrument as a result of varying the levels of the unobservable parameters. The Level 3 sensit iv ity analysis assumes a one-way market move and does not consider offsets for hedges. Held at fair value through proﬁt or loss Fair value through other comprehensive income Favourable Unfavourable Favourable Unfavourable Net exposure changes changes Net exposure changes changes $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Financ ial instruments held at fair value Loans and advances 1,937 1,985 1,862 – – – Reverse Repurchase agreements and other sim ilar secured lend ing 3,239 3,339 3,138 – – – Debt securit ies, alternat ive tier one and other elig ible b ills 1,593 1,643 1,542 – – – Equity shares 191 210 172 965 1,032 888 Other Assets – – – – – – Derivat ive ﬁnancial instruments (130) (115) (147) – – – Customers accounts (2,714) (2,540) (2,883) – – – Deposits by banks (371) (371) (371) – – – Short posit ions (180) (178) (182) – – – Debt securit ies in issue (1,414) (1,352) (1,476) – – – Other Liab il it ies – – – – – – At 31 December 2024 2,151 2,621 1,655 965 1,032 888 Financ ial instruments held at fair value Loans and advances 1,960 1,985 1,918 – – – Reverse Repurchase agreements and other sim ilar secured lend ing 2,363 2,390 2,336 – – – Debt securit ies, alternat ive tier one and other elig ible b ills 1,262 1,309 1,193 72 78 66 Equity shares 184 202 166 787 866 708 Other Assets 6 7 5 – – – Derivat ive ﬁnancial instruments (116) (75) (157) – – – Customers accounts (1,278) (1,191) (1,365) – – – Deposits by banks (334) (334) (334) – – – Short posit ions (103) (101) (105) – – – Debt securit ies in issue (1,041) (966) (1,115) – – – Other Liab il it ies (8) (7) (9) – – – At 31 December 2023 2,895 3,219 2,533 859 944 774 The reasonably possible alternatives could have increased or decreased the fair values of ﬁnanc ial instruments held at fair value through proﬁt or loss and those classif ied as fa ir value through other comprehensive income by the amounts disclosed below. Fair value changes Possible increase Possible decrease 2024 2023 2024 2023 Financ ial instruments $mill ion $mill ion $mill ion $mill ion Held at fair value through proﬁt or loss 470 324 (496) (362) Fair value through other comprehensive income 67 85 (77) (85) Financ ial statements Standard Chartered – Annual Report 2024 331 14. Derivat ive ﬁnancial instruments Accounting policy Fair values may be obtained from quoted market prices in active markets, recent market transactions, and valuation techniques, includ ing d iscounted cash ﬂow models and option pric ing models, as appropr iate. Where the in it ially recognised fair value of a derivat ive contract is based on a valuation model that uses inputs which are not observable in the market, it follows the same in it ial recognit ion account ing policy as for other ﬁnanc ial assets and l iab il it ies. All derivat ives are carr ied as assets when fair value is posit ive and as l iab il it ies when fa ir value is negative. Hedge accounting Under certain condit ions, the Group may des ignate a recognised asset or liab il ity, a ﬁrm commitment, highly probable forecast transaction or net investment of a foreign operation into a formal hedge accounting relationsh ip w ith a derivat ive that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group, as a policy choice to continue to apply hedge accounting in accordance with IAS 39. The Group applied IBOR reform Phase 2 reliefs in respect of hedging relationsh ips d irectly affected by IBOR reform. There are three categories of hedge relationsh ips: • Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liab il it ies or ﬁrm commitments • Cash ﬂow hedge: to manage interest rate or foreign exchange risk of highly probable future cash ﬂows attributable to a recognised asset or liab il ity, or a forecasted transaction • Net investment hedge: to manage the structural foreign exchange risk of an investment in a foreign operation The Group assesses, both at hedge incept ion and on a quarterly bas is, whether the derivat ives des ignated in hedge relationsh ips are h ighly effective in offsetting changes in fair values or cash ﬂows of hedged items. Hedges are considered to be highly effective if all the following criter ia are met: • At incept ion of the hedge and throughout its life, the hedge is prospectively expected to be highly effective in achiev ing offsetting changes in fair value or cash ﬂows attributable to the hedged risk • Prospective and retrospective effectiveness of the hedge should be with in a range of 80–125%. Th is is tested using regression analysis • This is tested using regression analysis where the slope of the regression line must be between -0.80 and -1.25 and the data pairs between the hedged item and the hedging instrument are regressed to a 95% conﬁdence interval. The regression co-efﬁc ient (R squared), wh ich measures the correlation between the variables in the regression, is at least 80% In the case of the hedge of a forecast transaction, the transaction must have a high probabil ity of occurr ing and must present an exposure to variat ions in cash ﬂows that are expected to affect reported proﬁt or loss. Fair value hedge Changes in the fair value of derivat ives that are des ignated and qualify as fair value hedging instruments are recorded in net trading income, together with any changes in the fair value of the hedged asset or liab il ity that are attributable to the hedged risk. If the hedge no longer meets the criter ia for hedge account ing, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to the income statement over the remain ing term to maturity of the hedged item. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised immed iately in the income statement. For ﬁnanc ial assets class if ied as fa ir value through other comprehensive income, the hedge accounting adjustment attributable to the hedged risk is included in net trading income to match the hedging derivat ive. Cash ﬂow hedge The effective portion of changes in the fair value of derivat ives that are des ignated and qualify as cash ﬂow hedging instruments are in it ially recognised in other comprehensive income, accumulating in the cash ﬂow hedge reserve with in equity. These amounts are subsequently recycled to the income statement in the periods when the hedged item affects proﬁt or loss. Both the derivat ive fa ir value movement and any recycled amount are recorded in the ‘Cashﬂow hedges’ line item in other comprehensive income. The Group assesses hedge effectiveness using the hypothetical derivat ive method, wh ich creates a derivat ive instrument to serve as a proxy for the hedged transaction. The terms of the hypothetical derivat ive match the cr it ical terms of the hedged item and it has a fair value of zero at incept ion. The hypothet ical derivat ive and the actual der ivat ive are regressed to establish the statist ical s ign iﬁcance of the hedge relat ionsh ip. Any ineffect ive port ion of the gain or loss on the hedging instrument is recognised in the net trading income immed iately. If a cash ﬂow hedge is discont inued, the amount accumulated in the cash ﬂow hedge reserve is released to the income statement as and when the hedged item affects the income statement. Should the Group consider the hedged future cash ﬂows are no longer expected to occur due to reasons, the cumulative gain or loss will be immed iately reclass if ied to proﬁt or loss. Net investment hedge Hedges of net investments are accounted for in a sim ilar manner to cash ﬂow hedges, w ith gains and losses aris ing on the effective portion of the hedges recorded in the line ‘Exchange differences on translation of foreign operations’ in other comprehensive income, accumulating in the translation reserve with in equ ity. These amounts remain in equity until the net investment is disposed of. The ineffect ive port ion of the hedges is recognised in the net trading income immed iately. 14. Derivat ive ﬁnancial instruments continued Financ ial statements Notes to the ﬁnancial statements 332 Standard Chartered – Annual Report 2024 The tables below analyse the notional princ ipal amounts and the pos it ive and negat ive fair values of derivat ive ﬁnancial instruments. Notional princ ipal amounts are the amounts of pr inc ipal underly ing the contract at the reporting date. 2024 2023 Notional Notional princ ipal princ ipal amounts Assets Liab il it ies amounts Assets Liab il it ies Derivat ives $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Foreign exchange derivat ive contracts: Forward foreign exchange contracts 4,923,991 54,913 51,128 3,628,067 30,897 32,601 Currency swaps and options 1,377,308 18,104 18,720 1,145,702 11,671 12,845 6,301,299 73,017 69,848 4,773,769 42,568 45,446 Interest rate derivat ive contracts: Swaps 6,267,261 20,600 22,282 4,841,616 53,735 55,241 Forward rate agreements and options 294,705 2,233 2,771 313,253 2,057 2,520 6,561,966 22,833 25,053 5,154,869 55,792 57,761 Exchange traded futures and options 383,528 30 27 325,051 39 47 Credit derivat ive contracts 227,675 397 2,320 281,130 485 1,107 Equity and stock index options 10,678 351 194 8,671 75 166 Commodity derivat ive contracts 142,393 1,274 1,052 117,436 970 1,029 Gross total derivat ives 13,627,539 97,902 98,494 10,660,926 99,929 105,556 Offset 1 – (16,430) (16,430) – (49,495) (49,495) Total derivat ives 13,627,539 81,472 82,064 10,660,926 50,434 56,061 1 In 2024, the Group migrated contracts from Collateralized to Market (CTM) to Settled to Market (STM) for house cleared contracts with London Clearing House The Group lim its exposure to cred it losses in the event of default by entering into master netting agreements with certain market counterparties. As required by IAS 32, exposures are only presented net in these accounts where they are subject to legal right of offset and intended to be settled net in the ordinary course of business. The Group applies balance sheet offsetting only in the instance where we are able to demonstrate legal enforceabil ity of the right to offset (e.g. via legal opin ion) and the ab il ity and intent ion to settle on a net bas is (e.g. via operational practice). The Group may enter into economic hedges that do not qualify for IAS 39 hedge accounting treatment, includ ing der ivat ive such as interest rate swaps, interest rate futures and cross currency swaps to manage interest rate and currency risks of the Group. These derivat ives are measured at fa ir value, with fair value changes recognised in net trading income: refer to Market Risk (page 247). Derivat ives held for hedg ing The Group enters into derivat ive contracts for the purpose of hedg ing interest rate, currency and structural foreign exchange risks inherent in assets, liab il it ies and forecast transact ions. The table below summarises the notional princ ipal amounts and carrying values of derivat ives des ignated in hedge accounting relationsh ips at the report ing date. Included in the table above are derivat ives held for hedg ing purposes as follows: 2024 2023 Notional Notional princ ipal princ ipal amounts Assets Liab il it ies amounts Assets Liab il it ies $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Derivat ives des ignated as fair value hedges: Interest rate swaps 63,840 763 1,679 69,347 1,264 2,397 Currency swaps 1,035 – 56 115 10 6 64,875 763 1,735 69,462 1,274 2,403 Derivat ives des ignated as cash ﬂow hedges: Interest rate swaps 49,309 165 282 41,834 184 537 Forward foreign exchange contracts 9,193 609 1 12,071 420 183 Currency swaps 14,305 729 2 14,321 191 150 72,807 1,503 285 68,226 795 870 Derivat ives des ignated as net investment hedges: Forward foreign exchange contracts 14,137 300 7 15,436 32 41 Total derivat ives held for hedg ing 151,819 2,566 2,027 153,124 2,101 3,314 14. Derivat ive ﬁnancial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 333 Fair value hedges The Group issues various long-term ﬁxed-rate debt issuances that are measured at amortised cost, includ ing some denominated in foreign currency, such as unsecured senior and subordinated debt (see Notes 22 and 27). The Group also holds various ﬁxed rate debt securit ies such as government and corporate bonds, includ ing some denom inated in foreign currency (see Note 13). These assets and liab il it ies held are exposed to changes in fair value due to movements in market interest and foreign currency rates. The Group uses interest rate swaps to exchange ﬁxed rates for ﬂoating rates on funding to match ﬂoating rates received on assets, or exchange ﬁxed rates on assets to match ﬂoating rates paid on funding. The Group further uses cross- currency swaps to match the currency of the issued debt or held asset with that of the entity’s functional currency. Hedge ineffect iveness from fa ir value hedges is driven by cross-currency basis risk and interest cashﬂows mismatch between the hedging instruments and underlying hedged items. The amortisat ion of fa ir value hedge adjustments for hedged items no longer designated is recognised in net interest income. At 31 December 2024 the Group held the following interest rate and cross currency swaps as hedging instruments in fair value hedges of interest and currency risk. Hedging instruments and ineffect iveness Change in fair value used to Ineffectiveness Carrying Amount calculate hedge recognised in Notional Asset Liab il ity ineffect iveness 2 proﬁt or loss Interest rate 1 $mill ion $mill ion $mill ion $mill ion $mill ion Interest rate swaps – debt securit ies/subord inated notes issued 46,832 283 1,643 46 2 Interest rate swaps – loans and advances to customers 1,334 10 12 (5) – Interest rate swaps – debt securit ies and other elig ible b ills 15,674 470 24 142 2 Interest and currency risk 1 Cross currency swaps – debt securit ies/subord inated notes issued 1,035 – 56 (52) (1) Cross currency swaps – debt securit ies and other elig ible b ills – – – (10) – Total at 31 December 2024 64,875 763 1,735 121 3 Interest rate swaps – debt securit ies/subord inated notes issued 45,455 381 2,267 271 (4) Interest rate swaps – loans and advances to customers 1,203 26 1 (20) – Interest rate swaps – debt securit ies and other elig ible b ills 22,689 857 129 (459) (17) Interest and currency risk 1 Cross currency swaps – debt securit ies/subord inated notes issued 70 – 6 (2) – Cross currency swaps – debt securit ies and other elig ible b ills 45 10 – 11 – Total at 31 December 2023 69,462 1,274 2,403 (199) (21) 1 Interest rate swaps are designated in hedges of the fair value of interest rate risk attributable to the hedged item. Cross currency swaps are used to hedge both interest rate and currency risks. All the hedging instruments are derivat ives, w ith changes in fair value includ ing hedge ineffect iveness recorded w ith in net trading income 2 This represents a (loss)/gains change in fair value used for calculating hedge ineffect iveness 14. Derivat ive ﬁnancial instruments continued Financ ial statements Notes to the ﬁnancial statements 334 Standard Chartered – Annual Report 2024 Hedged items in fair value hedges Cumulative balance of fair value Change in the adjustments Accumulated amount of fair value value used for from hedge adjustments included in the calculating de-designated Carrying Amount carrying amount hedge hedge Asset Liab il ity Asset Liab il ity ineffect iveness 1 relationsh ips 2 $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Debt securit ies/subord inated notes issued – 49,616 – 1,485 7 178 Debt securit ies and other el ig ible b ills 15,183 – (353) – (130) 235 Loans and advances to customers 1,330 – (4) – 5 4 Total at 31 December 2024 16,513 49,616 (357) 1,485 (118) 417 Debt securit ies/subord inated notes issued – 46,156 – 1,761 (273) 360 Debt securit ies and other el ig ible b ills 21,473 – (553) – 431 744 Loans and advances to customers 1,183 – (20) – 20 13 Total at 31 December 2023 22,656 46,156 (573) 1,761 178 1,117 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffect iveness 2 This represents a credit/(debit) to the balance sheet value Income statement impact of fair value hedges 2024 2023 $mill ion $mill ion Change in fair value of hedging instruments 121 (199) Change in fair value of hedged risks attributable to hedged items (118) 178 Net ineffect iveness ga in/(loss) to net trading income 3 (21) Amortisat ion ga in to net interest income 153 232 Cash ﬂow hedges The Group has exposure to market movements in future interest cash ﬂows on portfolios of customer accounts, debt securit ies and loans and advances to customers. The amounts and tim ing of future cash ﬂows, represent ing both princ ipal and interest ﬂows, are projected on the basis of contractual terms and other relevant factors, includ ing est imates of prepayments and defaults. The hedging strategy of the Group involves using interest rate swaps to manage the variab il ity in future cash ﬂows on assets and liab il it ies that have ﬂoat ing rates of interest by exchanging the ﬂoating rates for ﬁxed rates. It also uses foreign exchange contracts and currency swaps to manage the variab il ity in future exchange rates on its assets and liab il it ies and costs in foreign currencies. This is done on both a micro basis whereby a single interest rate or cross-currency swap is designated in a separate relationsh ip w ith a single hedged item (such as a ﬂoating-rate loan to a customer), and on a portfolio basis whereby each hedging instrument is designated against a group of hedged items that share the same risk (such as a group of customer accounts). Hedge ineffect iveness for cash ﬂow hedges is mainly driven by payment frequency mismatch between the hedging instrument and the underlying hedged item. The hedged risk is determined as the variab il ity of future cash ﬂows aris ing from changes in the designated benchmark interest and/or foreign exchange rates. Hedging instruments and ineffect iveness Change in fair Ineffectiveness Amount value used to (loss)/gain reclassif ied calculate Gain recognised in from Carrying Amount hedge recognised net trading reserves to Notional Asset Liab il ity ineffect iveness 1 in OCI income income $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Interest rate risk Interest rate swaps 49,309 165 282 (131) (125) (6) – Currency risk Forward foreign exchange contract 9,193 609 1 45 45 – – Cross currency swaps 14,305 729 2 650 648 2 – Total as at 31 December 2024 72,807 1,503 285 564 568 (4) – Interest rate risk Interest rate swaps 41,834 184 537 612 609 3 – Currency risk Forward foreign exchange contract 12,071 420 183 104 103 1 – Cross currency swaps 14,321 191 150 185 183 2 – Total as at 31 December 2023 68,226 795 870 901 895 6 – 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffect iveness 14. Derivat ive ﬁnancial instruments continued Financ ial statements Standard Chartered – Annual Report 2024 335 Hedged items in cash ﬂow hedges 2024 2023 Cumulative Cumulative balance in the balance in the Change in fair cash ﬂow hedge Change in fair cash ﬂow hedge value used for reserve from value used for reserve from calculating de-designated calculating de-designated hedge Cash ﬂow hedge hedge Cash ﬂow hedge ineffect iveness 1 hedge reserve relationsh ips ineffect iveness 1 hedge reserve relationsh ips $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Customer accounts (199) (38) 104 (421) (114) 136 Debt securit ies and other el ig ible b ills (354) (10) (5) (98) (22) (15) Loans and advances to customers 124 (27) (7) (312) 134 – Intragroup lending currency hedge (55) (2) – (64) – – Intragroup borrowing currency hedge (84) 4 – – – – Total at 31 December (568) (73) 92 (895) (2) 121 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffect iveness Impact of cash ﬂow hedges on proﬁt and loss and other comprehensive income 2024 2023 $mill ion $mill ion Cash ﬂow hedge reserve balance as at 1 January 91 (564) Gains recognised in other comprehensive income on effective portion of changes in fair value of hedging instruments 568 895 Gains reclassif ied to income statement when hedged item affected net proﬁt (669) (128) Taxation charge relating to cash ﬂow hedges 14 (112) Cash ﬂow hedge reserve balance as at 31 December 4 91 Net investment hedges Foreign currency exposures arise from investments in subsid iar ies that have a different functional currency from that of the presentation currency of the Group. This risk arises from the ﬂuctuation in spot exchange rates between the functional currency of the subsid iar ies and the Group’s presentation currency, which causes the value of the investment to vary. The Group’s policy is to hedge these exposures only when not doing so would be expected to have a sign iﬁcant impact on the regulatory ratios of the Group and its banking subsid iar ies. The Group uses foreign exchange forwards to manage the effect of exchange rates on its net investments in foreign subsid iar ies. Hedging instruments and ineffect iveness Changes in Change in fair the value of Amount value used to the hedging reclassif ied calculate instrument Ineffectiveness from Carrying amount hedge recognised recognised in reserves to Notional Asset Liab il ity ineffect iveness 2 in OCI proﬁt or loss income Derivat ive forward currency contracts 1 $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion As at 31 December 2024 14,137 300 7 678 678 – – As at 31 December 2023 15,436 32 41 215 215 – – 1 These derivat ive forward currency contracts have a matur ity of less than one year. The hedges are rolled on a period ic bas is 2 This represents a gain/(loss) change in fair value used for calculating hedge ineffect iveness Hedged items in net investment hedges 2024 2023 Balances Balances remain ing in the remain ing in the translation translation reserve from reserve from Change in the hedging Change in the hedging value used for relationsh ips for value used for relationsh ips for calculating which hedge calculating which hedge hedge Translation accounting is no hedge Translation accounting is no ineffect iveness 1 reserve² longer applied ineffect iveness 1 reserve² longer applied $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Net investments (678) 293 – (215) (9) – 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffect iveness 2 This represents the mark-to-market includ ing accrued interest on live hedges at 31 December Impact of net investment hedges on other comprehensive income 2024 2023 $mill ion $mill ion Gains recognised in other comprehensive income 678 215 14. Derivat ive ﬁnancial instruments continued Financ ial statements Notes to the ﬁnancial statements 336 Standard Chartered – Annual Report 2024 Maturity of hedging instruments 2024 2023 More than More than one month one month and less and less Less than than One to More than Less than than One to More than Fair value hedges one month one year ﬁve years ﬁve years one month one year ﬁve years ﬁve years Interest rate swap Notional $mill ion 2,763 11,260 32,030 17,787 3,242 9,789 41,545 14,771 Cross currency swap Notional $mill ion – – 1,035 – – 115 – – Average ﬁxed interest EUR – – 2.40 – – – – – rate (to USD) (%) GBP – – – – – 1.33 – – CNH – – – – – 3.17 – – Average exchange rate EUR/USD – – 0.91 – – – – – GBP/USD – – – – – 0.66 – – CNH/USD – – – – – 6.37 – – Cash ﬂow hedges Interest rate swap Notional $mill ion 2,428 15,589 25,943 5,349 2,129 27,634 11,664 407 Average ﬁxed interest rate (%) USD 5.09 4.62 4.05 3.74 5.10 3.45 4.70 3.16 Cross currency swap Notional $mill ion 880 12,232 1,193 – 166 10,794 3,361 – Average ﬁxed HKD – 4.07 0.21 – – 4.97 0.21 – interest rate (%) KRO – 2.85 – – 1.96 3.58 0.62 – USD – 5.64 – – TWD (3.68) 0.77 0.81 – JPY/HKD – (0.05) – – – – – – TWO 0.53 1.04 – – – – – – CNO 2.45 1.54 – – – – – – JPY 0.01 0.08 – – – (0.07) (0.05) – Average exchange rate HKD/USD – 7.78 7.85 – – 7.83 7.85 – KRO/USD – 1,386.94 1,300.90 – 1,192.20 1,321 1,285 – USD/HKD – 0.13 – – TWD/USD 30.63 31.53 32.22 – TWO/USD 31.83 32.22 – – – – – – CNO/USD 7.18 7.20 – – – – – – JPY/HKD – 18.12 – – – 17.86 18.09 – Forward foreign exchange contracts Notional $mill ion 2,044 7,149 – – 2,194 9,877 – – Average exchange rate BRL/USD – 6.54 – – – 5.17 – – TWD/HKD – – – – – 3.81 – – JPY/USD 147.38 145.65 – – 130.49 136 – – Net investment hedges Foreign exchange derivat ives Notional $mill ion 14,137 – – – 15,436 – – – Average exchange rate CNY/USD 7.13 – – – 7.12 – – – KRW/USD 1,364.97 – – – 1,283 – – – AED/USD – – – – 3.67 – – – HKD/USD 7.77 – – – 7.80 – – – INR/USD 84.07 – – – – – – – Financ ial statements Standard Chartered – Annual Report 2024 337 15. Loans and advances to banks and customers Accounting policy Refer to Note 13 Financ ial instruments for the relevant accounting policy. 2024 2023 $mill ion $mill ion Loans and advances to banks 43,609 45,001 Expected credit loss (16) (24) 43,593 44,977 Loans and advances to customers 285,936 292,145 Expected credit loss (4,904) (5,170) 281,032 286,975 Total loans and advances to banks and customers 1 324,625 331,952 1 Includes $2.5 bill ion (31 December 2023: $3.6 b ill ion) of assets pledged as collateral. For more informat ion, please refer to page 127 of P illar 3 disclosures The Group has outstanding resident ial mortgage loans to Korea res idents of $13.7 bill ion (2023: $17.2 b ill ion) and Hong Kong residents of $31.1 bill ion (2023: $32.7 b ill ion). Analysis of loans and advances to customers by key geographies and client segment together with their related impa irment provis ions are set out w ith in the R isk review and Capital review (pages 193 to 274). 16. Reverse repurchase and repurchase agreements includ ing other s im ilar lend ing and borrowing Accounting policy The Group purchases securit ies (a reverse repurchase agreement – ‘reverse repo’) typ ically with ﬁnanc ial inst itut ions subject to a commitment to resell or return the securit ies at a predeterm ined price. These securit ies are not included in the balance sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet as collateral received. Considerat ion pa id (or cash collateral provided) is accounted for as a loan asset at amortised cost unless it is managed on a fair value basis or designated at fair value through proﬁt or loss. In major ity of cases through the contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to sell or repledge the asset concerned. The Group also sells securit ies (a repurchase agreement – ‘repo’) subject to a comm itment to repurchase or redeem the securit ies at a predeterm ined price. The securit ies are reta ined on the balance sheet as the Group retains substantially all the risks and rewards of ownership and these securit ies are d isclosed as pledged collateral. Considerat ion rece ived (or cash collateral received) is accounted for as a ﬁnanc ial l iab il ity at amortised cost unless it is either mandatorily classif ied as fa ir value through proﬁt or loss or irrevocably designated at fair value through proﬁt or loss at in it ial recognit ion. Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets sim ilar to those provided as collateral in the event of a default. Securit ies sold subject to repos, e ither by way of a Global Master Repurchase Agreement (GMRA), or through a securit ies sale and Total Return Swap (TRS) cont inue to be recognised on the balance sheet as the Group retains substantially the associated risks and rewards of the securit ies (the TRS is not recognised). Assets sold under repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding Reverse repurchase agreements and other sim ilar secured lend ing 2024 2023 $mill ion $mill ion Banks 37,700 32,286 Customers 61,101 65,295 98,801 97,581 Of which: Fair value through proﬁt or loss 86,195 81,847 Banks 34,754 30,548 Customers 51,441 51,299 Held at amortised cost 12,606 15,734 Banks 2,946 1,738 Customers 9,660 13,996 16. Reverse repurchase and repurchase agreements includ ing other s im ilar lend ing and borrowing continued 338 Standard Chartered – Annual Report 2024 Financ ial statements Notes to the ﬁnancial statements Under reverse repurchase and securit ies borrow ing arrangements, the Group obtains securit ies under usual and customary terms which permit it to repledge or resell the securit ies to others. Amounts on such terms are: 2024 2023 $mill ion $mill ion Securit ies and collateral rece ived (at fair value) 103,007 101,935 Securit ies and collateral wh ich can be repledged or sold (at fair value) 102,741 101,845 Amounts repledged/transferred to others for ﬁnancing act iv it ies, to satisfy liab il it ies under sale and repurchase agreements (at fair value) 27,708 34,154 Repurchase agreements and other sim ilar secured borrow ing 2024 2023 $mill ion $mill ion Banks 8,669 5,585 Customers 37,002 47,956 45,671 53,541 Of which: Fair value through proﬁt or loss 33,539 41,283 Banks 7,759 4,658 Customers 25,780 36,625 Held at amortised cost 12,132 12,258 Banks 910 927 Customers 11,222 11,331 The tables below set out the ﬁnancial assets prov ided as collateral for repurchase and other secured borrowing transactions: Fair value Fair value through other through proﬁt comprehensive Off-balance or loss income Amortised cost sheet Total Collateral pledged against repurchase agreements $mill ion $mill ion $mill ion $mill ion $mill ion On-balance sheet Debt securit ies and other el ig ible b ills 4,698 6,366 7,592 – 18,656 Off-balance sheet Repledged collateral received – – – 27,708 27,708 At 31 December 2024 4,698 6,366 7,592 27,708 46,364 On-balance sheet Debt securit ies and other el ig ible b ills 4,993 8,157 10,181 – 23,331 Off-balance sheet Repledged collateral received – – – 34,154 34,154 At 31 December 2023 4,993 8,157 10,181 34,154 57,485 Financ ial statements Standard Chartered – Annual Report 2024 339 17. Goodwill and intang ible assets Accounting policy Goodwill Goodwill on acquis it ions of subsid iar ies is included in intang ible assets. Goodw ill on acquis it ions of associates is included in Investments in associates and jo int ventures. Goodw ill included in intang ible assets is assessed at each balance sheet date for impa irment and carr ied at cost less any accumulated impa irment losses. Ga ins and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting expected cash ﬂows of the relevant cash generating units (CGUs) and discount ing these at an appropr iate discount rate, the determinat ion of wh ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa irment test ing. CGUs represent the lowest level with in the Group wh ich generate separate cash inﬂows and at which the goodwill is monitored for internal management purposes. These are equal to or smaller than the Group’s reportable segments (as set out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has been allocated are set out in the CGU table (page 340). Other accounting estimates and judgements The carrying amount of goodwill is based on the applicat ion of judgements includ ing the bas is of goodwill impa irment calculation assumptions. Judgement is also applied in determinat ion of CGUs. Estimates include forecasts used for determin ing cash ﬂows for CGUs, the appropr iate long-term growth rates to use and discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual assessment to evaluate whether the carrying value of goodwill is impa ired. The est imat ion of future cash ﬂows and the level to which they are discounted is inherently uncertain and requires sign iﬁcant judgement and is subject to potential change over time. Acquired intang ibles At the date of acquis it ion of a subsid iary or assoc iate, intang ible assets wh ich are deemed separable and that arise from contractual or other legal rights are capital ised and included with in the net ident iﬁable assets acqu ired. These intang ible assets are in it ially measured at fair value, which reﬂects market expectations of the probabil ity that the future econom ic beneﬁts embodied in the asset will ﬂow to the entity and are amortised on the basis of their expected useful lives (4 to 16 years). At each balance sheet date, these assets are assessed for ind icators of impa irment. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount, the asset is written down immed iately to the recoverable amount. Computer software Acquired computer software licences are capital ised on the bas is of the costs incurred to acquire and bring to use the specif ic software. Internally generated software represents substantially all of the total software capital ised. D irect costs of the development of separately ident iﬁable internally generated software are capital ised where it is probable that future economic beneﬁts attributable to the software will ﬂow from its use. These costs include staff remuneration costs such as salaries, statutory payments and share-based payments, materials, service providers and contractors provided their time is directly attributable to the software build. Costs incurred in the ongoing maintenance of software are expensed immed iately when incurred. Internally generated software is amortised over each asset’s useful life to a maximum of 10-years. On an annual basis software assets’ residual values and useful lives are reviewed, includ ing assess ing for ind icators of impa irment. Ind icators of impa irment include loss of business relevance, obsolescence, exit of the business to which the software relates, technological changes, change in use of the asset, reduction in useful life, plans to reduce usage or scope. For capital ised software that is internally generated, judgement is required to determine which costs relate to research (expensed) and which costs relate to development (capital ised). Further judgement is required to determine the technical feasib il ity of completing the software such that it will be available for use. Estimates are used to determine how the software will generate probable future economic beneﬁts: these estimates include cost savings, income increases, balance sheet improvements, improved functional ity or improved asset safeguarding. Software as a Service (SaaS) and sim ilar cloud serv ice models is a contractual arrangement that conveys the right to receive access to the supplier’s software applicat ion over the contract term. As such, the Group does not have control and as a result recognises an operating expense for these costs over the contract term. Certain costs, includ ing customisat ion costs related to implementat ion of the SaaS may meet the deﬁnit ion of an intang ible asset in their own right if it is separately ident iﬁable and control is established. These costs are capital ised if it is expected to provide the Group with future economic beneﬁts ﬂowing from the underlying resource and the Group can restrict others from accessing those beneﬁts. 17. Goodwill and intang ible assets continued Financ ial statements Notes to the ﬁnancial statements 340 Standard Chartered – Annual Report 2024 2024 2023 Acquired Computer Acquired Computer Goodwill intang ibles software Total Goodwill intang ibles software Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Cost At 1 January 2,429 278 6,168 8,875 2,471 295 5,178 7,944 Exchange translation differences (42) (18) (109) (169) (24) (12) 21 (15) Addit ions – 1 952 953 – – 1,124 1,124 Disposals – – (5) (5) – – – – Impairment – – (663)¹ (663) – – (151)² (151) Amounts written off – (9) (42) (51) (18) (5) (4) (27) At 31 December 2,387 252 6,301 8,940 2,429 278 6,168 8,875 Provis ion for amort isat ion At 1 January – 265 2,396 2,661 – 276 1,799 2,075 Exchange translation differences – (20) (48) (68) – (12) 11 (1) Amortisat ion – 4 695 699 – 1 625 626 Impairment charge – – (102)¹ (102) – – (39)² (39) Amounts written off – – (41) (41) – – – – At 31 December – 249 2,900 3,149 – 265 2,396 2,661 Net book value 2,387 3 3,401 5,791 2,429 13 3,772 6,214 1 During 2024, the Group performed a review of its computer software intang ibles wh ich were capital ised as at 31 December 2023, and impa ired $483 m ill ion of the 2024 net book value due to lim itat ions in the available evidence to support the continued capital isat ion of the assets. The Group has made improvements in its processes and controls to capture the required evidence going forward. The Group has also performed its annual review of computer software intang ibles to determine instances when the Group is no longer using certain applicat ions in its ongoing business and impa ired $78 m ill ion. A total of $561 m ill ion is recorded with in impa irment to reﬂect the above 2 Computer software impa irment includes $82.8 mill ion charge relat ing to write off on SaaS (Software as a Service) applicat ions cap ital ised in previous years At 31 December 2024, accumulated goodwill impa irment losses incurred from 1 January 2005 amounted to $3,331 mill ion (31 December 2023: $3,331 mill ion), of wh ich $nil was recognised in 2024 (31 December 2023: $nil). Outcome of impa irment assessment An annual assessment is made as to whether the current carrying value of goodwill is impa ired. For the purposes of impa irment testing, goodwill is allocated at the date of acquis it ion to a CGU. Goodwill is considered to be impa ired if the carrying amount of the relevant CGU exceeds its recoverable amount. Indicators of impa irment include changes in the economic performance and outlook of the region includ ing geopol it ical changes, changes in market value of regional investments, large credit defaults and strategic decis ions to ex it certain regions. The recoverable amounts for all the CGUs were measured based on value in use (VIU). The calculation of VIU for each CGU is calculated using ﬁve-year cashﬂow project ions and an est imated terminal value based on a perpetuity value after year ﬁve. The cashﬂow project ions are based on forecasts approved by management up to 2029. The perpetuity terminal value amount is calculated using year ﬁve cashﬂows using long-term GDP growth rates. All cashﬂows are discounted using discount rates which reﬂect market rates appropriate to the CGU. The cash ﬂows used as an input to the VIU calculations used in determin ing whether goodw ill allocated to CGUs should be impa ired were amended dur ing 2024 to reﬂect changes to the basis on which business performance is monitored. There has been no impact from the change estimated in the current period. It is impract icable for the Group to est imate the amount of the effect of this change in future periods. The goodwill allocated to each CGU and key assumptions used in determin ing the recoverable amounts are set out below and are solely estimates for the purposes of assessing impa irment of acqu ired goodwill. 2024 2023 Long-term Long-term Pre Tax forecast GDP Pre Tax forecast GDP Goodwill Discount rates growth rates Goodwill Discount rates growth rates Cash generating unit $mill ion per cent per cent $mill ion per cent per cent Country CGUs Asia 1,014 1,036 Hong Kong 359 13.0 1.1 357 12.9 1.6 Taiwan 316 12.2 1.5 333 12.4 1.5 Singapore 339 13.0 2.3 346 13.9 2.1 Africa & Middle East 81 80 Pakistan 32 35.9 3.3 31 35.5 3.2 Bahrain 49 12.4 0.8 49 12.4 0.5 Global CGUs 1,292 1,313 Wealth Management 83 15.0 1.8 83 15.3 1.9 Corporate & Investment Banking 1,209 15.5 2.3 1,230 15.7 2.3 2,387 2,429 In the current year, there are no CGUs for which any ind iv idual movement on key estimates (cashﬂow, discount rate and GDP growth) would cause an impa irment. 17. Goodwill and intang ible assets continued Financ ial statements Standard Chartered – Annual Report 2024 341 Acquired intang ibles These primar ily compr ise those items recognised as part of the acquis it ions of Union Bank (now amalgamated into Standard Chartered Bank (Pakistan) Lim ited), Hs inchu (now amalgamated into Standard Chartered Bank (Taiwan) Lim ited), Amer ican Express Bank and ABSA’s custody business in Africa. The acquired intang ibles are amort ised over periods from four years to a maximum of 16 years. The constituents are as follows: 2024 2023 $mill ion $mill ion Acquired intang ibles compr ise: Brand names 1 – Customer relationsh ips – 1 Licenses 2 12 Net book value 3 13 18. Property, plant and equipment Accounting policy All property, plant and equipment is stated at cost less accumulated depreciat ion and impa irment losses. Land and build ings compr ise mainly branches and ofﬁces. Freehold land is not depreciated although it is subject to impa irment test ing. Depreciat ion on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows: • Owned premises • up to 50 years • Leasehold premises • up to 50 years • Leasehold improvements • Shorter of remain ing lease term and 10 years • Equipment and motor vehicles • three to 15 years Where the Group is a lessee of a right-of-use asset, the leased assets are capital ised and included in Property, plant and equipment with a corresponding liab il ity to the lessor recognised in other liab il it ies. The account ing policy for lease assets is set out in Note 19. Financ ial statements Notes to the ﬁnancial statements 18. Property, plant and equipment continued 342 Standard Chartered – Annual Report 2024 Leased Leased Operating premises equipment Premises Equipment lease assets assets assets Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Cost or valuation At 1 January 2024 1,741 810 – 1,864 18 4,433 Exchange translation differences (41) (31) – (38) (4) (114) Addit ions 112 1 194 1 – 213 150 1 669 Disposals and fully depreciated assets written off (61) 2 (37) 2 – (13) (1) (112) Other movements (25) – – – – (25) As at 31 December 2024 1,726 936 – 2,026 163 4,851 Depreciat ion Accumulated at 1 January 692 535 – 914 18 2,159 Exchange translation differences (28) (15) – (40) (14) (97) Charge for the year 79 92 – 220 36 427 Impairment charge 2 – – 9 – 11 Attributable to assets sold, transferred or written off (29) 2 (37) 2 – (7) (1) (74) Accumulated at 31 December 2024 716 575 – 1,096 39 2,426 Net book amount at 31 December 2024 1,010 361 – 930 124 2,425 Cost or valuation At 1 January 2023 1,773 840 4,420 1,652 29 8,714 Exchange translation differences (27) (22) – (5) (3) (57) Addit ions 45 1 114 1 – 286 1 446 Disposals and fully depreciated assets written off (68) 2 (122) 2 (4,420) 3 (69) (9) (4,688) Transfers to assets held for sale 18 – – – – 18 As at 31 December 2023 1,741 810 – 1,864 18 4,433 Depreciat ion Accumulated at 1 January 2023 678 575 1,185 730 24 3,192 Exchange translation differences (21) (17) 1 (25) (1) (63) Charge for the year 77 99 27 238 4 445 Impairment charge 3 – – 9 – 12 Attributable to assets sold, transferred or written off (47) 2 (122) 2 (1,213) 3 (38) (9) (1,429) Transfers to assets held for sale 2 – – – – 2 Accumulated at 31 December 2023 692 535 – 914 18 2,159 Net book amount at 31 December 2023 1,049 275 – 950 – 2,274 1 Refer to the cash ﬂow statement under cash ﬂows from invest ing act iv it ies section for the purchase of property, plant and equipment during the year of $456 mill ion (2023: $159 m ill ion) 2 Disposals for property, plant and equipment during the year of $56mill ion (2023: $53 m ill ion) in the cash ﬂow statement would include the gains and losses Incurred as part of other operating income (Note 6) on disposal of assets during the year and the net book value disposed 3 Includes disposal of assets from aviat ion ﬁnance leas ing business and sale of vessels Financ ial statements Standard Chartered – Annual Report 2024 343 19. Leased assets Accounting policy Where the Group is a lessee and the lease is deemed in scope of IFRS 16, it recognises a liab il ity equal to the present value of lease payments over the lease term, discounted using the incremental borrowing rate applicable in the economic environment of the lease. The liab il ity is recognised in ‘Other liab il it ies’. A correspond ing right-of-use asset equal to the liab il ity, adjusted for any lease payments made at or before the commencement date, is recognised in ‘Property, plant and equipment’. The lease term includes any extension options contained in the contract that the Group is reasonably certain it will exercise. The Group subsequently depreciates the right-of-use asset using the straight-line method over the lease term and measures the lease liab il ity using the effective interest method. Depreciat ion on the asset is recognised in ‘Depreciat ion and amortisat ion’, and interest on the lease liab il ity is recognised in ‘Interest expense’. If a leased premise, or a physically dist inct port ion of a premise such as an ind iv idual ﬂoor, is deemed by management to be surplus to the Group’s needs and action has been taken to abandon the space before the lease expires, this is considered an ind icator of impa irment. An impa irment loss is recognised if the right-of-use asset, or portion thereof, has a carrying value in excess of its value-in-use when taking into account factors such as the abil ity and l ikel ihood of obta in ing a subtenant. The key judgement in determin ing lease balances is the determinat ion of the lease term, in particular whether the Group is reasonably certain that it will exercise extension options present in lease contracts. On in it ial recognit ion, the Group considers a range of characterist ics such as prem ises function, regional trends and the term remain ing on the lease to determine whether it is reasonably certain that a contractual right to extend a lease will be exercised. When there are changes to assumptions the lease balances are remeasured. The estimates involved are the determinat ion of incremental borrowing rates in the respective economic environments. The Group uses third-party broker quotes to estimate its USD cost of senior unsecured borrowing, then uses cross currency swap pric ing informat ion to determ ine the equivalent cost of borrowing in other currencies. If it is not possible to estimate an incremental borrowing rate through this process, other proxies such as local government bond yields are used. The Group primar ily enters lease contracts that grant it the right to use premises such as ofﬁce build ings and reta il branches. Exist ing lease l iab il it ies may change in future periods due to changes in assumptions or decis ions to exerc ise lease renewal or terminat ion opt ions, changes in payments due to renegotiat ions of market rental rates as perm itted by those contracts and changes to payments due to rent being contractually linked to an inﬂat ion index. In general the re-measurement of a lease liab il ity under these circumstances leads to an equal change to the right-of-use asset balance, with no immed iate effect on the income statement. The total cash outﬂow during the year for premises and equipment leases was $265 mill ion (2023: $283 m ill ion). The right-of-use asset balances and depreciat ion charges are d isclosed in Note 18. The lease liab il ity balances are disclosed in Note 23 and the interest expense on lease liab il it ies is disclosed in Note 3. Maturity analysis The maturity proﬁle for lease liab il it ies assoc iated with leased premises and equipment assets is as follows: 2024 2023 Between Between Between Between one year two years one year two years One year and two and ﬁve More than One year and two and ﬁve More than or less years years ﬁve years Total or less years years ﬁve years Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Other liab il it ies – lease l iab il it ies 279 223 443 414 1,359 248 203 373 410 1,234 20. Other assets 2024 2023 Other assets include: $mill ion $mill ion Financ ial assets held at amort ized cost (Note 13): Hong Kong SAR Government certif icates of indebtedness (Note 23)¹ 6,369 6,568 Cash collateral 3 11,046 10,337 Acceptances and endorsements 5,476 5,326 Unsettled trades and other ﬁnancial assets 11,694 15,909 34,585 38,140 Non-ﬁnancial assets: Commodit ies and em iss ions cert if icates² 8,358 8,889 Other assets 525 565 43,468 47,594 1 The Hong Kong SAR Government certif icates of indebtedness are subordinated to the claims of other parties in respect of bank notes issued 2 Physically held commodit ies and em iss ion cert if icates are inventory that is carried at fair value less costs to sell, $5.6 bill ion (31 December 2023: $5.1 b ill ion) are classif ied as Level 1 and $2.7 b ill ion are class if ied as Level 2 (31 December 2023: $3.7 b ill ion). For commod it ies, the fa ir value is derived from observable spot or short-term futures prices from relevant exchanges 3 Cash collateral are margins placed to collateralize net derivat ive mark-to-market (MTM) pos it ions Financ ial statements Notes to the ﬁnancial statements 344 Standard Chartered – Annual Report 2024 21. Assets held for sale and associated liab il it ies Accounting Policy Upon reclassif icat ion property, plant and equipment are measured at the lower of their carrying amount and fair value less costs to sell. Financ ial instruments continue to be measured per the accounting polic ies in Note 13 Financ ial instruments. The assets below have been presented as held for sale following the approval of Group management and the transactions are expected to complete in 2025. Assets held for sale The ﬁnancial assets reported below are class if ied under Level 1 $58 m ill ion (31 December 2023: $101 m ill ion), Level 2 $353 m ill ion (31 December 2023: $541 mill ion) and Level 3 $473 m ill ion (31 December 2023: $59 m ill ion). 2024 2023 $mill ion $mill ion Financ ial assets held at fa ir value through proﬁt or loss 5 – Loans and advances to banks 5 – Financ ial assets held at amort ised cost 884 701 Cash and balances at central banks 109 246 Loans and advances to banks 18 24 Loans and advances to customers 656² 251 Debt securit ies held at amort ised cost 101 180 Property, plant and equipment 15 59 Vessels 1 – 43 Others 15 16 Others 28 49 932 809 1 Considerat ion on d isposal of Property, plant and equipment classif ied under assets held for sale dur ing 31 December 2024 was $53 mill ion (31 December 2023: $149 mill ion) 2 Includes $414 mill ion unsecured personal loan bus iness from SC Bank India which was disposed on 23 January 2025 (refer note 37 – Post balance sheet events) Liab il it ies held for sale The ﬁnancial l iab il it ies reported below are class if ied under Level 1 $89 m ill ion (2023: $54 m ill ion) and Level 2 $271 m ill ion (2023: $672 mill ion). 2024 2023 $mill ion $mill ion Financ ial l iab il it ies held at amort ised cost 360 726 Deposits by banks – 3 Customer accounts 360 723 Other liab il it ies 16 51 Provis ions for l iab il it ies and charges 5 10 381 787 Financ ial statements Standard Chartered – Annual Report 2024 345 22. Debt securit ies in issue Accounting policy Refer to Note 13 Financ ial instruments for the relevant accounting policy. 2024 2023 Certif icates Certif icates of deposit of Other debt of deposit of Other debt $100,000 securit ies $100,000 securit ies or more in issue Total or more in issue Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Debt securit ies in issue 18,113 46,496 64,609 15,533 47,013 62,546 Debt securit ies in issue included with in: Financ ial l iab il it ies held at fa ir value through proﬁt or loss (Note 13) – 13,731 13,731 – 10,817 10,817 Total debt securit ies in issue 18,113 60,227 78,340 15,533 57,830 73,363 In 2024, the Company issued a total of $7.4 bill ion sen ior notes for general business purposes of the Group as shown below: Securit ies $mill ion $1,500 mill ion ﬁxed-rate sen ior notes due 2035 (callable 2034) 1,500 SGD 335 mill ion ﬁxed-rate sen ior notes due 2030 (callable 2029) 246 EUR1,000 mill ion ﬁxed-rate sen ior notes due 2032 (callable 2031) 1,035 HKD 1,100 mill ion ﬁxed-rate sen ior notes due 2027 (callable 2026) 142 $500 mill ion ﬂoat ing-rate senior notes due 2028 (callable 2027) 500 $1,000 mill ion ﬁxed-rate sen ior notes due 2028 (callable 2027) 1,000 $1,500 mill ion ﬁxed-rate sen ior notes due 2035 (callable 2034) 1,500 $1,500 mill ion ﬁxed-rate sen ior notes due 2030 (callable 2029) 1,500 Total Senior Notes issued 7,423 In 2023, the Company issued a total of $8.1 bill ion sen ior notes for general business purposes of the Group as shown below: Securit ies $mill ion $1,000 mill ion ﬁxed rate sen ior notes due 2027 (callable 2026) 1,000 EUR 1,000 mill ion ﬁxed rate sen ior notes due 2031 (callable 2030) 1,105 HKD 784 mill ion ﬁxed rate sen ior notes due 2026 (callable 2025) 100 $1,000 mill ion ﬁxed rate sen ior notes due 2034 (callable 2033) 1,000 $1,000 mill ion ﬁxed rate sen ior notes due 2027 (callable 2026) 1,000 $500 mill ion ﬂoat ing rate senior notes due 2027 (callable 2026) 500 $400 mill ion ﬂoat ing rate senior notes due 2028 (callable 2027) 400 $1,500 mill ion ﬁxed rate sen ior notes due 2029 (callable 2028) 1,500 $750 mill ion ﬁxed rate sen ior notes due 2030 (callable 2029) 750 $750 mill ion ﬁxed rate sen ior notes due 2028 (callable 2027) 750 Total Senior Notes issued 8,105 23. Other liab il it ies Accounting policy Refer to Note 13 Financ ial instruments for the relevant accounting policy for ﬁnanc ial l iab il it ies, Note 19 Leased assets for the accounting policy for leases, and Note 31 Share-based payments for the accounting policy for cash-settled share- based payments. 2024 2023 $mill ion $mill ion Financ ial l iab il it ies held at amort ised cost (Note 13) Notes in circulat ion 1 6,369 6,568 Acceptances and endorsements 5,476 5,386 Cash collateral 2 15,005 8,440 Property leases 1,041 1,054 Equipment leases 115 4 Unsettled trades and other ﬁnancial l iab il it ies 16,041 17,211 44,047 38,663 Non-ﬁnancial l iab il it ies Cash-settled share-based payments 131 102 Other liab il it ies 503 456 44,681 39,221 1 Hong Kong currency notes in circulat ion of $6,369 m ill ion (31 December 2023: $6,568 m ill ion) that are secured by the Government of Hong Kong SAR cert if icates of indebtedness of the same amount included in other assets (Note 20) 2 Cash collateral are margins received against collateralize net derivat ive mark-to-market (MTM) pos it ions Financ ial statements Notes to the ﬁnancial statements 346 Standard Chartered – Annual Report 2024 24. Provis ions for l iab il it ies and charges Accounting policy The recognit ion and measurement of prov is ions for l iab il it ies and charges requ ires sign iﬁcant judgement and the use of estimates about uncertain future condit ions or events. Estimates include the best estimate of the probabil ity of outﬂow of econom ic resources, cost of settling a provis ion and tim ing of settlement. Judgements are requ ired for inherently uncertain areas such as legal decis ions ( includ ing external advice obtained), and outcome of regulator reviews. 2024 2023 Provis ion Provis ion for credit Other for credit Other commitments 1 provis ions 2 Total commitments 1 provis ions 2 Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion At 1 January 227 72 299 280 103 383 Exchange translation differences 10 (5) 5 (5) 4 (1) Charge/(release) against proﬁt⁴ 18 136 154 (48) 42 (6) Provis ions ut il ised⁴ – (121) (121) – (71) (71) Other movements 3 – 12 12 – (6) (6) At 31 December 255 94 349 227 72 299 1 Expected credit loss for credit commitment comprises those undrawn contractually committed facil it ies where there is doubt as to the borrowers’ abil ity to meet their repayment obligat ions 2 Other provis ions cons ist mainly of provis ions for legal cla ims and regulatory and enforcement invest igat ions and proceedings 3 Includes the provis ions transferred to held for sale 4 $136 mill ion (charge) and $121 m ill ion (prov is ion ut il ised) includes provis ion for Korea equ ity linked securit ies (ELS) portfol io 25. Contingent liab il it ies and comm itments Accounting policy Financ ial guarantee contracts and loan comm itments Financ ial guarantee contracts and any loan comm itments issued at below-market interest rates are in it ially recognised at their fair value as a ﬁnanc ial l iab il ity, and subsequently measured at the higher of the in it ial value less the cumulative amount of income recognised and their expected credit loss provis ion. Loan comm itments may be designated at fair value through proﬁt or loss where that is the business model under which such contracts are held. Notional values of ﬁnanc ial guarantee contracts and loan commitments are disclosed in the table below. Financ ial guarantees, trade cred its and irrevocable letters of credit are the notional values of contracts issued by the Group’s Transaction Banking business for which an obligat ion to make a payment has not ar isen at the reporting date. Transaction Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not paid, the Group will reimburse the holder of the contract for the actual ﬁnanc ial loss suffered. These contracts have various legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facil itate trade through export and import business, provide guarantees to ﬁnanc ial inst itut ions where the Group has a local presence, as well as guaranteeing project ﬁnanc ing involv ing large construct ion projects undertaken by sovereigns and corporates. The contracts may contain performance clauses which require the counterparty performing services or provid ing goods to meet certa in condit ions before a r ight to payment is achieved, however the Group does not guarantee this performance. The Group will only guarantee the credit of the counterparty paying for the services or goods. Commitments are where the Group has conﬁrmed its intent ion to prov ide funds to a customer or on behalf of a customer under prespecif ied terms and cond it ions in the form of loans, overdrafts, future guarantees whether cancellable or not and the Group has not made payments at the balance sheet date; those instruments are included in these ﬁnanc ial statements as commitments. Commitments and contingent liab il it ies are generally cons idered on demand as the Group may have to honour them, or the client may draw down at any time. Capital commitments are contractual commitments the Group has entered into to purchase non-ﬁnanc ial assets. The table below shows the contract or underlying princ ipal amounts of unmatured off-balance sheet transact ions at the balance sheet date. The contract or underlying princ ipal amounts ind icate the volume of bus iness outstanding and do not represent amounts at risk. 2024 2023 $mill ion $mill ion Financ ial guarantees and other cont ingent liab il it ies Financ ial guarantees, trade cred its and irrevocable letters of credit 90,632 74,414 90,632 74,414 Commitments Undrawn formal standby facil it ies, credit lines and other commitments to lend One year and over 76,915 78,356 Less than one year 29,249 33,092 Uncondit ionally cancellable 76,365 70,942 182,529 182,390 Capital Commitments Contracted capital expenditure approved by the directors but not provided for in these accounts 123 217 25. Contingent liab il it ies and comm itments continued Financ ial statements Standard Chartered – Annual Report 2024 347 As set out in Note 26, the Group has contingent liab il it ies in respect of certain legal and regulatory matters for which it is not practicable to estimate the ﬁnanc ial impact as there are many factors that may affect the range of possible outcomes. 26. Legal and regulatory matters Accounting policy Where appropriate, the Group recognises a provis ion for l iab il it ies when it is probable that an outﬂow of economic resources embodying economic beneﬁts will be required, and for which a reliable estimate can be made of the obligat ion. The uncertaint ies inherent in legal and regulatory matters affect the amount and tim ing of any potent ial outﬂows with respect to which provis ions have been establ ished. These uncertaint ies also mean that it is not possible to give an aggregate estimate of contingent liab il it ies ar is ing from such legal and regulatory matters. The Group receives legal claims against it in a number of jur isd ict ions and is subject to regulatory and enforcement invest igat ions and proceedings from time to time. Apart from the matters described below, the Group currently considers none of the ongoing claims, invest igat ions or proceedings to be ind iv idually material. However, in light of the uncertaint ies involved in such matters there can be no assurance that the outcome of a particular matter or matters currently not considered to be material may not ultimately be material to the Group’s results in a particular reporting period depending on, among other things, the amount of the loss resulting from the matter(s) and the results otherwise reported for such period. Since 2014, the Group has been named as a defendant in a series of lawsuits that have been ﬁled in the United States Distr ict Courts for the Southern and Eastern Distr icts of New York aga inst a number of banks on behalf of plaint iffs who are, or are relatives of, vict ims of attacks in Iraq, Afghanistan and Israel. The plaint iffs in each of these lawsuits have alleged that the defendant banks aided and abetted the unlawful conduct of parties with connections to terrorist organisat ions in breach of the United States Anti-Terrorism Act. None of these lawsuits specify the amount of damages claimed. The Group continues to defend these lawsuits. In January 2020, a shareholder derivat ive compla int was ﬁled by the City of Philadelph ia in New York State Court against 45 current and former directors and senior ofﬁcers of the Group. It is alleged that the ind iv iduals breached their duties to the Group and caused a waste of corporate assets by permitt ing the conduct that gave r ise to the costs and losses to the Group related to legacy conduct and control issues. In February 2022, the New York State Court ruled in favour of Standard Chartered PLC’s motion to dism iss the compla int. The plaint iffs are pursu ing an appeal against the February 2022 ruling. A hearing date for the plaint iffs’ appeal is awaited. Since October 2020, four lawsuits have been ﬁled in the English High Court against Standard Chartered PLC on behalf of more than 200 shareholders in relation to alleged untrue and/or mislead ing statements and/or om iss ions in informat ion publ ished by Standard Chartered PLC in its rights issue prospectuses of 2008, 2010 and 2015 and/or public statements regarding the Group’s histor ic sanct ions, money laundering and ﬁnanc ial cr ime compliance issues. These lawsuits have been brought under sections 90 and 90A of the Financ ial Serv ices and Markets Act 2000. The trial of these lawsuits is due to start in late 2026. The claimants have alleged that their losses are in the region of £1.56 bill ion (exclud ing any pre-judgment interest that may be awarded). In addit ion to hav ing denied any and all liab il ity, Standard Chartered PLC will contest claimants’ alleged losses. Bernard Madoff’s 2008 confession to running a Ponzi scheme through Bernard L. Madoff Investment Securit ies LLC (BMIS) gave rise to a number of lawsuits against the Group. BMIS and the Fairf ield funds (wh ich invested in BMIS) are in bankruptcy and liqu idat ion, respectively. Between 2010 and 2012, ﬁve lawsuits were brought against the Group by the BMIS bankruptcy trustee and the Fairf ield funds’ l iqu idators, in each case seeking to recover funds paid to the Group’s clients pursuant to redemption requests made prior to BMIS’ bankruptcy ﬁl ing. The total amount sought in these cases exceeds $300 mill ion, exclud ing any pre-judgment interest that may be awarded. Three of the four lawsuits commenced by the Fairf ield funds’ l iqu idators have been dism issed and the appeals of those d ism issals by the funds’ l iqu idators are ongo ing. The fourth lawsuit has been dism issed and is not the subject of any further appeal. The Group continues to defend the lawsuit brought by the BMIS bankruptcy trustee. A number of Korean banks, includ ing Standard Chartered Bank Korea, sold equ ity linked securit ies (ELS) to customers, the redemption values of which are determined by the performance of various stock ind ices. From January 2021 to May 2023 Standard Chartered Bank Korea sold relevant ELS to its customers with a notional value of approximately $900 mill ion. Due to the performance of the Hang Seng China Enterprise Index, several thousand Standard Chartered Bank Korea customers have redeemed their ELS at a loss. Standard Chartered Bank Korea has offered compensation to impacted customers. Standard Chartered Bank Korea may also receive a regulatory penalty. A $100 mill ion prov is ion had been recogn ised as at Q1 2024 with respect to antic ipated losses, $24 m ill ion of wh ich remains recorded on the Group’s balance sheet as at 31 December 2024. With the exception of the Korea ELS matter described above, the Group has concluded that the threshold for recording provis ions pursuant to IAS 37 Prov is ions, Cont ingent Liab il it ies and Cont ingent Assets is not met with respect to the above matters; however, the outcomes of these matters are inherently uncertain and diff icult to pred ict. Financ ial statements Notes to the ﬁnancial statements 348 Standard Chartered – Annual Report 2024 27. Subordinated liab il it ies and other borrowed funds 2024 2023 $mill ion $mill ion Subordinated loan capital – issued by subsid iary undertak ings $700 mill ion 8.0 per cent subord inated notes due 2031 1 326 342 NPR2.4 bill ion ﬁxed sub debt rate 10.3 per cent 2 18 18 344 360 Subordinated loan capital – issued by the Company 3 £900 mill ion 5.125 per cent subord inated notes due 2034 601 644 $2 bill ion 5.7 per cent subord inated notes due 2044 2,179 2,197 $1 bill ion 5.2 per cent subord inated notes due 2024 – 1,001 $750 mill ion 5.3 per cent subord inated notes due 2043 691 697 €500 mill ion 3.125 per cent subord inated notes due 2024 – 536 $1.25 bill ion 4.3 per cent subord inated notes due 2027 1,174 1,154 $1 bill ion 3.516 per cent ﬁxed rate reset subord inated notes due 2030 (callable 2025) 996 964 $500 mill ion 4.866 per cent ﬁxed rate reset subord inated notes due 2033 (callable 2028) 478 481 £96.035 mill ion 7.375 per cent Non-Cum Pref Shares (reclassed as Debt) – Other borrow ings 121 122 £99.250 mill ion 8.25 per cent Non-Cum Pref Shares (reclassed as Debt) – Other borrow ings 124 126 $750 mill ion 3.603 per cent ﬁxed rate reset subord inated notes due 2033 (callable 2032) 634 648 € 1 bill ion 2.5 per cent ﬁxed rate reset subord inated notes due 2030 (callable 2025) 1,015 1,044 $1.25 bill ion 3.265 per cent ﬁxed rate reset subord inated notes due 2036 (callable 2030) 1,032 1,040 €1 bill ion 1.200 per cent ﬁxed rate reset subord inated notes due 2031 (callable 2026) 993 1,022 10,038 11,676 Total for Group 10,382 12,036 1 Issued by Standard Chartered Bank 2 Issued by Standard Chartered Bank Nepal Lim ited. NPR refers to Nepalese Rupee 3 In the balance sheet of the Company the amount recognised is $10,338 mill ion (2023: $11,945 m ill ion), w ith the difference on account of hedge accounting achieved on a Group basis 2024 2023 USD EUR GBP NPR Total USD EUR GBP NPR Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Fixed rate subordinated debt 7,510 2,008 846 18 10,382 8,524 2,602 892 18 12,036 Total 7,510 2,008 846 18 10,382 8,524 2,602 892 18 12,036 Redemptions and repurchases during the year. Standard Chartered PLC exercised its right to redeem $1 bill ion 5.2 per cent subord inated notes 2024 and €500 mill ion 3.125 per cent subordinated notes 2024 Issuance during the year There was no issuance during the period. 28. Share capital, other equity instruments and reserves Accounting policy Securit ies wh ich carry a discret ionary coupon and have no ﬁxed matur ity or redemption date are classif ied as other equ ity instruments. Interest payments on these securit ies are recogn ised, net of tax, as distr ibut ions from equity in the period in which they are paid. Where the Company or other members of the consolidated Group purchase the Company’s equity share capital, the considerat ion pa id is deducted from the total shareholders’ equity of the Group and/or of the Company as treasury shares until they are cancelled. Where such shares are subsequently sold or reissued, any considerat ion rece ived is included in shareholders’ equity of the Group and/or the Company. Total share Number of Ordinary Ordinary Preference capital and Other equity ordinary shares share capital 1 Share premium Share premium 2 share premium instruments mill ions $mill ion $mill ion $mill ion $mill ion $mill ion At 1 January 2023 2,895 1,447 3,989 1,494 6,930 6,504 Cancellation of shares includ ing share buyback (230) (115) – – (115) – Addit ional T ier 1 Redemption – – – – – (992) At 31 December 2023 2,665 1,332 3,989 1,494 6,815 5,512 Cancellation of shares includ ing share buyback (240) (120) – – (120) – Addit ional T ier 1 equity issuance – – – – – 1,568 Addit ional T ier 1 Redemption – – – – – (553) Other movements 3 – – – – – (25) At 31 December 2024 2,425 1,212 3,989 1,494 6,695 6,502 1 Issued and fully paid ordinary shares of 50 cents each 2 Includes preference share capital of $75,000 3 Relates to realised translation loss on redemption of AT1 securit ies of SGD 750 m ill ion 28. Share capital, other equity instruments and reserves continued Standard Chartered – Annual Report 2024 349 Financ ial statements Share buyback On 23 February 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 mill ion, the total cons iderat ion pa id was $1,000 mill ion, and the buyback completed on 25 June 2024. The total number of shares purchased was 113,266,516, representing 4.25 per cent of the ordinary shares in issue at the beginn ing of the programme. The nom inal value of the shares was transferred from the share capital to the capital redemption reserve account. The shares were purchased by Standard Chartered PLC on various exchanges not includ ing the Hong Kong Stock Exchange, by private arrangement. On 30 July 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. As at FY 2024 the buyback is ongoing, with the total number of shares purchased of 126,262,414 representing 4.95 per cent of the ordinary shares in issue at the beginn ing of the programme, the total cons iderat ion was $1,355 m ill ion and a further $145 m ill ion relating to irrevocable obligat ion to buy back shares under the buyback programme has been recogn ised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account. The shares were purchased by Standard Chartered PLC on various exchanges not includ ing the Hong Kong Stock Exchange. Average Highest Lowest price paid Aggregate Aggregate Number of price Paid price paid per share price paid price paid ordinary shares £ £ £ £ $ February 2024 6,418,285 6.6920 6.3700 6.5039 41,743,905 52,831,654 March 2024 45,113,015 7.0000 6.4400 6.6765 301,197,187 383,771,653 April 2024 24,716,649 7.1300 6.3800 6.7727 167,398,467 209,475,694 May 2024 19,525,751 7.9540 6.9080 7.6883 150,119,738 189,885,098 June 2024 17,492,816 7.8840 7.1220 7.3676 128,879,487 164,035,854 August 2024 27,834,474 7.8340 6.6740 7.3594 204,843,866 264,717,166 September 2024 33,245,826 8.1120 7.4260 7.7103 256,333,914 338,823,108 October 2024 34,497,109 9.1700 7.6880 8.3791 289,055,494 377,008,057 November 2024 20,250,801 9.8600 9.0240 9.4021 190,399,354 243,785,545 December 2024 10,434,204 10.0950 9.6380 9.8709 102,994,626 130,375,125 Ordinary share capital In accordance with the Companies Act 2006 the Company does not have authorised share capital. The nominal value of each ordinary share is 50 cents. During the period nil shares were issued under employee share plans. Preference share capital At 31 December 2024, the Company has 15,000 $5 non-cumulative redeemable preference shares in issue, with a premium of $99,995 making a paid up amount per preference share of $100,000. The preference shares are redeemable at the option of the Company and are classif ied in equity. The available proﬁts of the Company are distr ibuted to the holders of the issued preference shares in prior ity to payments made to holders of the ordinary shares and in prior ity to, or par i passu with, any payments to the holders of any other class of shares in issue. On a wind ing up, the assets of the Company are appl ied to the holders of the preference shares in prior ity to any payment to the ordinary shareholders and in prior ity to, or par i passu with, the holders of any other shares in issue, for an amount equal to any div idends payable (on approval of the Board) and the nom inal value of the shares together with any premium as determined by the Board. The redeemable preference shares are redeemable at the paid up amount (which includes premium) at the option of the Company in accordance with the terms of the shares. The holders of the preference shares are not entitled to attend or vote at any general meeting except where any relevant div idend due is not paid in full or where a resolution is proposed varying the rights of the preference shares Other equity instruments The table provides details of outstanding Fixed Rate Resetting Perpetual Subordinated Contingent Convertible AT1 securit ies issued by Standard Chartered PLC. All issuances are made for general business purposes and to increase the regulatory capital base of the Group. Conversion Proceeds net of Interest price per Issuance date Nominal value issue costs rate 1 Coupon payment dates each year 2 First reset dates 3 ordinary share⁵ 26 Jun 2020 $1,000 mill ion $992 mill ion 6% 26 January, 26 July 26 January 2026 $5.331 14 January 2021 $1,250 mill ion $1,239 mill ion 4.75% 14 January, 14 July 14 July 2031 $6.353 19 August 2021 $1,500 mill ion $1,489 mill ion 4.30% 19 February, 19 August 19 August 2028 $6.382 15 August 2022 $1,250 mill ion $1,239 mill ion 7.75% 15 February, 15 August 15 February 2028 $7.333 08 March 2024 $1,000 mill ion $993 mill ion 7.875% 8 March, 8 September 8 September 2030 $8.216 19 Sep 2024 SGD750 mill ion $575 mill ion 5.300% 19 March, 19 September 19 March 2030 SGD12.929 Total⁴ $6,527 mill ion 1 Interest rates for the period from (and includ ing) the issue date to (but excluding) the ﬁrst reset date 2 Interest payable semi-annually in arrears 3 Securit ies are resettable each date fall ing ﬁve years, or an integral multiple of ﬁve years, after the ﬁrst reset date 4 Excludes realised translation loss ($25 mill ion) on redempt ion of AT1 securit ies of SGD 750 m ill ion 5 Conversion price set at the time of pric ing w ith reference to closing share price and any applicable discount Financ ial statements Notes to the ﬁnancial statements 28. Share capital, other equity instruments and reserves continued 350 Standard Chartered – Annual Report 2024 Standard Chartered PLC redeemed SGD 750 mill ion F ixed Rate Resetting Perpetual Contingent Convertible Securit ies on its ﬁrst optional redemption date of 3 October 2024 for $578 mill ion (real ised translation loss of $25 mill ion). The AT1 issuances above are primar ily purchased by inst itut ional investors. The princ ipal terms of the AT1 secur it ies are descr ibed below: • The securit ies are perpetual and redeemable, at the opt ion of Standard Chartered PLC in whole but not in part, on the ﬁrst interest reset date and each date falling ﬁve years after the ﬁrst reset date. • The securit ies are also redeemable for certa in regulatory or tax reasons on any date at 100 per cent of their princ ipal amount together with any accrued but unpaid interest up to (but excluding) the date ﬁxed for redemption. Any redemption is subject to Standard Chartered PLC giv ing not ice to the relevant regulator and the regulator granting permiss ion to redeem. • Interest payments on these securit ies w ill be accounted for as a div idend. • Interest on the securit ies is due and payable only at the sole and absolute discret ion of Standard Chartered PLC, subject to certain addit ional restr ict ions set out in the terms and condit ions. Accord ingly, Standard Chartered PLC may at any time elect to cancel any interest payment (or part thereof) which would otherwise be payable on any interest payment date. • The securit ies convert into ordinary shares of Standard Chartered PLC, at a pre-determined price detailed in the table above, should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. Approximately 970 mill ion ord inary shares would be required to satisfy the conversion of all the securit ies ment ioned above. The securit ies rank beh ind the claims against Standard Chartered PLC of (a) unsubordinated creditors, (b) which are expressed to be subordinated to the claims of unsubordinated creditors of Standard Chartered PLC but not further or otherwise; or (c) which are, or are expressed to be, jun ior to the cla ims of other creditors of Standard Chartered PLC, whether subordinated or unsubordinated, other than claims which rank, or are expressed to rank, pari passu with, or jun ior to, the cla ims of holders of the AT1 securit ies in a wind ing–up occurr ing prior to the conversion trigger. Reserves The constituents of the reserves are summarised as follows: • The capital reserve represents the exchange difference on redenominat ion of share cap ital and share premium from sterling to US dollars in 2001. The capital redemption reserve represents the nominal value of preference shares redeemed • The amounts in the “Capital and Merger Reserve” represents the premium aris ing on shares issued using a cash box ﬁnanc ing structure, which required the Company to create a merger reserve under section 612 of the Companies Act 2006. Shares were issued using this structure in 2005 and 2006 to assist in the funding of Korea ($1.9 bill ion) and Ta iwan ($1.2 bill ion) acqu is it ions, in 2008, 2010 and 2015 for the shares issued by way of a rights issue, primar ily for cap ital maintenance requirements and for the shares issued in 2009 by way of an accelerated book build, the proceeds of which were used in the ordinary course of business of the Group. The funding raised by the 2008, 2010 and 2015 rights issues and 2009 share issue was fully retained with in the Company. Of the 2015 fund ing, $1.5 bill ion was used to subscr ibe to addit ional equ ity in Standard Chartered Bank, a wholly owned subsid iary of the Company. Apart from the Korea, Ta iwan and Standard Chartered Bank funding, the merger reserve is considered realised and distr ibutable. • Own credit adjustment reserve represents the cumulative gains and losses on ﬁnanc ial l iab il it ies des ignated at fair value through proﬁt or loss relating to own credit. Gains and losses on ﬁnanc ial l iab il it ies des ignated at fair value through proﬁt or loss relating to own credit in the year have been taken through other comprehensive income into this reserve. On derecognit ion of appl icable instruments the balance of any OCA will not be recycled to the income statement, but will be transferred with in equ ity to retained earnings • Fair value through other comprehensive income (FVOCI) debt reserve represents the unrealised fair value gains and losses in respect of ﬁnancial assets class if ied as FVOCI, net of expected cred it losses and taxation. Gains and losses are deferred in this reserve and are reclassif ied to the income statement when the underlying asset is sold, matures or becomes impa ired. • FVOCI equity reserve represents unrealised fair value gains and losses in respect of ﬁnanc ial assets class if ied as FVOCI, net of taxation. Gains and losses are recorded in this reserve and never recycled to the income statement • Cash ﬂow hedge reserve represents the effective portion of the gains and losses on derivat ives that meet the cr iter ia for these types of hedges. Gains and losses are deferred in this reserve and are reclassif ied to the income statement when the underlying hedged item affects proﬁt and loss or when a forecast transaction is no longer expected to occur • Translation reserve represents the cumulative foreign exchange gains and losses on translation of the net investment of the Group in foreign operations. Since 1 January 2004, gains and losses are deferred to this reserve and are reclassif ied to the income statement when the underlying foreign operation is disposed. Gains and losses aris ing from der ivat ives used as hedges of net investments are netted against the foreign exchange gains and losses on translation of the net investment of the foreign operations • Retained earnings represents proﬁts and other comprehensive income earned by the Group and Company in the current and prior periods, together with the after tax increase relating to equity-settled share options, less div idend d istr ibut ions, own shares held (treasury shares) and share buybacks A substantial part of the Group’s reserves is held in overseas subsid iary undertak ings and branches, princ ipally to support local operations or to comply with local regulations. The maintenance of local regulatory capital ratios could potentially restrict the amount of reserves which can be remitted. In addit ion, if these overseas reserves were to be remitted, further unprovided taxation liab il it ies m ight arise. As at 31 December 2024, the distr ibutable reserves of Standard Chartered PLC (the Company) were $14.1 b ill ion (31 December 2023: $14.7 bill ion). D istr ibutable reserves of SC PLC were $14.1 b ill ion, wh ich is calculated from the Merger reserve and Retained earnings with considerat ion for restr icted items in line with sections 830 and 831 of the Companies Act 2006. 28. Share capital, other equity instruments and reserves continued Financ ial statements Standard Chartered – Annual Report 2024 351 Own shares The 2004 Employee Beneﬁt Trust (2004 Trust) is used in conjunct ion w ith the Group’s employee share schemes and other employee share-based payments (such as upfront shares and salary shares). Computershare Trustees (Jersey) Lim ited is the trustee of the 2004 Trust. Group companies fund the 2004 Trust from time to time to enable the trustees to acquire shares in Standard Chartered PLC to satisfy these arrangements. Details of the shares purchased and held by the 2004 Trust are set out below. 2004 Trust 2024 2023 Shares purchased during the period 19,604,557 29,069,539 Market price of shares purchased ($mill ion) 223 237 Shares held at the end of the period 17,589,987 28,095,542 Maximum number of shares held during the period 28,085,688 28,893,930 Except as disclosed, neither the Company nor any of its subsid iar ies has bought, sold or redeemed any securit ies of the Company listed on The Stock Exchange of Hong Kong Lim ited, on another exchange, by pr ivate arrangement, or by way of a general offer during the period. Div idend wa ivers The trustees of the 2004 Trust, which holds ordinary shares in Standard Chartered PLC in connection with the operation of its employee share plans, waive any div idend on the balance of ord inary shares that have not been allocated to employees, except for 0.01p per share. Changes in share capital and other equity instruments of Standard Chartered PLC subsid iar ies The table below details the transactions in equity instruments (includ ing convert ible and hybrid instruments) of the Group’s subsid iar ies, includ ing issuances, conversions, redemptions, purchase or cancellation. This is required under the Hong Kong List ing requ irements, appendix D2 paragraph 10. Descript ion of Issued/(redeemed) Issued/(redeemed) Name Shares Shares capital Standard Chartered Bank Niger ia L im ited NGN1.00 Ordinary 8,581,235,698 NGN11,081,235,698 Furaha Finserve Uganda Lim ited USD1.00 Ordinary 199,500 USD199,500 SCV Research and Development Pvt. Ltd. INR10.00 Ordinary 10,000 INR100,000 Furaha Holding Ltd USD1.00 Ordinary 6,500,000 USD6,500,000 Qatalyst Pte. Ltd. USD1.00 Ordinary 1,099,999 USD1,099,999 Standard Chartered I H Lim ited USD1.00 Ordinary 52,086,333 USD 52,086,333 Standard Chartered Strategic Investments Lim ited USD1.00 Ordinary 16,086,333 USD 16,086,333 Standard Chartered Capital Lim ited INR10.00 Equity 32,269,750 INR322,697,500 SC Ventures Holdings Lim ited USD1.00 Ordinary 59,386,000 USD 59,386,000 Standard Chartered Holdings Lim ited USD2.00 Ordinary 25,043,166 USD 50,086,332 Standard Chartered Luxembourg S.A. EUR1.00 Ordinary 125,000 EUR125,000 Mox Bank Lim ited HKD Ordinary 54,740,000 HKD547,400,000 Standard Chartered Research and Technology India Private Lim ited INR10 Equity Class – A 10,821,311 INR108,213,110 myZoi Financ ial Inclus ion Technologies LLC AED1.00 Ordinary 25,000,000 AED25,000,000 Zodia Holdings Lim ited USD1.00 A Ordinary 18,000,000 USD18,000,000 Audax Financ ial Technology Pte. Ltd USD Ordinary-A 8,500,000 USD8,500,000 Trust Bank Singapore Lim ited SGD Ordinary 185,000,000 SGD185,000,000 Zodia Markets Holdings Lim ited USD1.00 Ordinary 5,580 USD 5,580 Letsbloom Pte. Ltd. USD Ordinary-A 9,406,219 USD9,406,219 Zodia Custody (Ireland) Lim ited USD1.00 Ordinary 1,000,000 USD1,000,000 SCV Research and Development Pte. Ltd. USD Ordinary-A' 11,440,850 USD11,440,850 SCV Master Holding Company Pte. Ltd. USD Ordinary 63,299,999 USD63,299,999 Financ ial Inclus ion Technologies Ltd USD Ordinary-A 6,700,000 USD6,700,000 Appro Onboarding Solutions FZ-LLC AED1,000 Ordinary 21,670 AED21,670,000 Solv-India Pte. Ltd. USD Ordinary 38,963,752 USD38,963,752 Solvezy Technology Kenya Lim ited KES1,000.00 Ordinary 196,448 KES196,448,000 Tawi Fresh Kenya Lim ited KES1,000.00 Ordinary 454,890 KES454,890,000 Libeara Pte. Ltd. USD Ordinary 10,258,400 USD10,258,400 CashEnable Pte. Ltd. USD Ordinary-A 9,300,000 USD9,300,000 Solvezy Technology Ghana Ltd GHS Ordinary 18,000,441 GHS18,000,441 Libeara (Singapore) Pte. Ltd. USD Ordinary 10,258,400 USD10,258,400 Standard Chartered Securit ies (Afr ica) Holdings Lim ited USD1.00 Ordinary (8,002,228) USD(8,002,228) Banco Standard Chartered en Liqu idac ion USD75.133 Ordinary (133,930) USD(10,062,563) Please see Note 22 Debt securit ies in issue for issuances and redemptions of senior notes. Please see Note 27 Subordinated liab il it ies and other borrowed funds for issuance and redemptions of subordinated liab il it ies and AT1 securit ies. Please see Note 40 Related undertakings of the Group for subsid iar ies liqu idated, d issolved or sold during the year. Financ ial statements Notes to the ﬁnancial statements 352 Standard Chartered – Annual Report 2024 29. Non-controlling interests 2024 2023 $mill ion $mill ion As at 1 January 396 350 Comprehensive income for the year (22) (38) Income in equity attributable to non-controlling interests (14) (31) Other proﬁts attributable to non-controlling interests (8) (7) Distr ibut ions (43) (26) Other increases 1 63 110 As at 31 December 394 396 1 Movements in 2024 are primar ily from non-controll ing interests pertain ing to Trust Bank S ingapore Lim ited ($55 m ill ion) and Mox Bank L im ited ($14 m ill ion) partly offset by disposal of SCB Angola S.A. ($6 mill ion). Cash rece ived from addit ional investment was $55 mill ion (2023: $116 m ill ion). Movements in 2023 primar ily from non-controlling interest pertain ing to Mox Bank L im ited ($48 m ill ion), Trust Bank S ingapore Lim ited ($34 m ill ion) and Zod ia Custody Lim ited ($28 m ill ion). 30. Retirement beneﬁt obligat ions Accounting policy The Group operates pension and other post-retirement beneﬁt plans around the world, which can be categorised into deﬁned contribut ion plans and deﬁned beneﬁt plans. • For deﬁned contribut ion plans, the Group pays contribut ions to publ icly or privately admin istered pens ion plans on a statutory or contractual basis, and such amounts are charged to operating expenses. The Group has no further payment obligat ions once the contr ibut ions have been pa id. • For deﬁned beneﬁt plans, which promise levels of payments where the future cost is not known with certainty; – the accounting obligat ion is calculated annually by independent actuaries using the projected unit method. – Actuarial gains and losses that arise are recognised in shareholders’ equity and presented in the statement of other comprehensive income in the period they arise. – The Group determines the net interest expense on the net deﬁned beneﬁt liab il ity for the year by applying the discount rate used to measure the deﬁned beneﬁt obligat ion at the beg inn ing of the annual per iod to the net deﬁned beneﬁt liab il ity, taking into account any changes in the net deﬁned beneﬁt liab il ity during the year as a result of contribut ions and beneﬁt payments. Net interest expense, the cost of the accrual of new beneﬁts, beneﬁt enhancements (or reductions) and admin istrat ion expenses met directly from plan assets are recognized in the income statement in the period in which they were incurred. Other accounting estimates and judgements There are many factors that affect the measurement of the retirement beneﬁt obligat ions. Th is measurement requires the use of estimates, such as discount rates, inﬂat ion, pens ion increases, salary increases, and life expectancies which are inherently uncertain. The table below summarises how these assumptions are set: Assumption Detail Discount rate Determined by reference to market yields at the end of the reporting period on high-quality corporate bonds (or, in countries where there is no deep market in such bonds, government bonds) of a currency and term consistent with the currency and term of the post-employment beneﬁt obligat ions. Th is is the approach adopted across all our geographies. Inﬂation Where there are inﬂat ion-l inked bonds available (e.g. United Kingdom and the eurozone), the Group derives inﬂat ion based on the market on those bonds, w ith the market yield adjusted in respect of the United Kingdom to take account of the fact that liab il it ies are l inked to Consumer Price Index inﬂat ion, whereas the reference bonds are l inked to Retail Price Index inﬂat ion. Where no inﬂat ion-l inked bonds exist, we determine inﬂat ion assumpt ions based on a combinat ion of long-term forecasts and short-term inﬂat ion data. Salary growth Salary growth assumptions reﬂect the Group’s long-term expectations, taking into account future business plans and macroeconomic data (primar ily expected future long-term inﬂat ion). Demographic assumptions Demographic assumptions, includ ing mortal ity and turnover rates, are typically set based on the assumptions used in the most recent actuarial funding valuation, and will generally use industry standard tables, adjusted where appropriate to reﬂect recent histor ic exper ience and/or future expectations. The sensit iv ity of the liab il it ies to changes in these assumptions is shown in the Note below. Net Retirement beneﬁt obligat ion and charge compr ise: Net Obligat ion Charge 1,2 2024 2023 2024 2023 $mill ion $mill ion $mill ion $mill ion Deﬁned beneﬁt plans 101 166 62 66 Deﬁned contribut ion plans 1 14 17 389 365 Total 2 115 183 451 431 1 The Group during the year util ised aga inst deﬁned contribut ion payments, $5m forfe ited pension contribut ions in respect of employees who left before their interests vested fully. The residual balance of forfeited contribut ions is $17m 2 Refer note 7: “Operating expenses” 30. Retirement beneﬁt obligat ions continued Financ ial statements Standard Chartered – Annual Report 2024 353 The Group operates over 60 deﬁned beneﬁt plans across its geographies, many of which are closed to new entrants who now join deﬁned contr ibut ion arrangements. The a im of all these plans is, as part of the Group’s commitment to ﬁnanc ial wellbe ing for employees, to give employees the opportunity to save appropriately for retirement in a way that is consistent with local regulations, taxation requirements and market condit ions. The deﬁned beneﬁt plans expose the Group to currency r isk, interest rate risk, investment risk and actuarial risks such as longevity risk. The material holdings of government and corporate bonds shown partially hedge movements in the liab il it ies result ing from interest rate and inﬂat ion changes. Sett ing aside movements from other drivers such as currency ﬂuctuation, the increases in discount rates in most geographies over 2024 have led to lower liab il it ies. These have been partly offset by decreases in the value of bonds held, however growth assets such as equit ies and property performed well over 2024, lead ing to a fall in the pension deﬁc it reported. These movements are shown as actuar ial gains and losses in the tables below. Contribut ions into a number of plans in excess of the amounts required to fund beneﬁts accruing have also helped to reduce the net deﬁc it over the year. The disclosures required under IAS 19 have been calculated by independent qualif ied actuar ies based on the most recent full actuarial valuations updated, where necessary, to 31 December 2024. UK Fund The Standard Chartered Pension Fund (the ‘UK Fund’) is the Group’s largest pension plan, representing 46 per cent (31 December 2023: 53 per cent) of total pension liab il it ies. The UK Fund is set up under a trust that is legally separate from the Bank (its formal sponsor) and, as required by UK legislat ion, at least one th ird of the trustee directors are nominated by members; the remainder are appointed by the Bank. The trustee directors have a ﬁduc iary duty to members and are respons ible for governing the UK Fund in accordance with its Trust Deed and Rules. The UK Fund was closed to new entrants from 1 July 1998 and closed to the accrual of new beneﬁts from 1 April 2018: all UK employees are now offered membership of a deﬁned contribut ion plan. The ﬁnancial pos it ion of the UK Fund is regularly assessed by an independent qualif ied actuary. The fund ing valuation as at 31 December 2023 was completed in December 2024 by the Scheme Actuary, T Kripps of Will is Towers Watson, us ing assumptions different from those used for IAS19, and agreed with the UK Fund trustee. It showed that the UK Fund was 96% funded at that date, revealing a past service deﬁc it of $48 m ill ion (£38 m ill ion). To repair the deﬁc it, three annual cash payments each of $13 m ill ion (£10 m ill ion) were agreed, w ith the ﬁrst of these paid in December 2024, and two further instalments to be paid in December 2025 and December 2026. However, the agreement allowed that the payments due in 2025 and 2026 may be varied depending on the funding posit ion at the preced ing 30 June provided that total payments over the three year recovery plan period do not exceed $38 mill ion (£30 m ill ion). As part of the 2023 valuation agreement, it was agreed that gilts with a nominal value of $200 mill ion (£160 m ill ion) would rema in in escrow to provide addit ional secur ity the Trustee. The Group has not recognised any addit ional l iab il ity under IFRIC 14, as the Bank has control of any pension surplus under the Trust Deed and Rules. Overseas plans The princ ipal overseas deﬁned beneﬁt arrangements operated by the Group are in Hong Kong, India, Jersey, Korea, Taiwan, United Arab Emirates (UAE) and the United States of America (US). Plans in Hong Kong, India, Korea, Taiwan and UAE remain open for accrual of future beneﬁts. Key assumptions The princ ipal ﬁnancial assumpt ions used at 31 December 2024 were: 2024 2023 UK Funded Overseas Plans 1 Unfunded Plans 2 UK Funded Overseas Plans 1 Unfunded Plans 2 % % % % % % Discount rate 5.5 1.6 – 6.9 2.5 – 6.9 4.6 1.2–4.9 3.1–7.4 Price inﬂat ion 2.5 2.0 – 5.0 2.0 – 5.0 2.5 2.0–2.9 2.0–5.0 Salary increases n/a 3.5 – 8.5 4.0 – 8.5 n/a 3.5–4.5 4.0–8.5 Pension increases 2.3 2.9 0.0 – 2.3 2.3 2.9 0.0–2.3 Post-retirement medical rate n/a 8% in 2024 8% in 2023 reducing reducing by 0.5% by 0.5% per annum to per annum to 5% in 2030 5% in 2029 1 The range of assumptions shown is for the funded deﬁned beneﬁt overseas plans in Hong Kong, India, Jersey, Korea, Taiwan, and the US. These comprise around 85 per cent of the total liab il it ies of overseas funded plans 2 The range of assumptions shown is for the main unfunded deﬁned beneﬁt plans in India, Korea, Thailand, UAE, UK and the US. They comprise over 90 per cent of the total liab il it ies of unfunded plans The princ ipal non-ﬁnancial assumpt ions are those made for UK life expectancy. The UK mortality tables are S4PMA for males and S4PFA for females, projected by year of birth with the CMI 2023 improvement model with a 1.25 Per cent annual trend and in it ial addit ion parameter of 0.25 Per cent. Scal ing factors of 81 Per cent for male pensioners, 93 Per cent for female pensioners, 81 Per cent for male dependants and 81 Per cent for female dependants have been applied. 30. Retirement beneﬁt obligat ions continued Financ ial statements Notes to the ﬁnancial statements 354 Standard Chartered – Annual Report 2024 The resulting assumptions for life expectancy for the UK Fund are that a male member currently aged 60 will live for 28 years (2023: 27 years) and a female member for 29 years (2023: 30 years) and a male member currently aged 40 will live for 29 years (2023: 29 years) and a female member for 31 years (2023: 32 years) after their 60th birthdays. Both ﬁnancial and non-ﬁnancial assumpt ions can be expected to change in the future, which would affect the value placed on the liab il it ies. For example, changes at the report ing date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the deﬁned beneﬁt obligat ion by the amounts shown below: • If the discount rate increased by 25 basis points the liab il ity would reduce by approximately $25 mill ion for the UK Fund (2023: $35 mill ion) and $20 m ill ion for the other plans (2023: $20 m ill ion) • If the rate of inﬂat ion increased by 25 basis points the liab il ity, allowing for the consequent impact on pension and salary increases, would increase by approximately $15 mill ion for the UK Fund (2023: $20 m ill ion) and $15 m ill ion for the other plans (2023: $15 mill ion) • If the rate of salary growth relative to inﬂat ion increased by 25 basis points the liab il ity would increase by nil for the UK Fund (2023: nil) and approximately $10 mill ion for the other plans (2023: $10 m ill ion) • If longevity expectations increased by one year the liab il ity would increase by approximately $35 mill ion for the UK Fund (2023: $35 mill ion) and $10 m ill ion for the other plans (2023: $10 m ill ion) Although this analysis does not take account of the full distr ibut ion of cash ﬂows expected, it does provide an approximat ion of the sensit iv ity to the main assumptions. While changes in other assumptions would also have an impact, the effect would not be as sign iﬁcant. Proﬁle of plan obligat ions Funded plans Unfunded UK Fund Overseas plans Duration of the deﬁned beneﬁt obligat ion ( in years) 10 8 8 Duration of the deﬁned beneﬁt obligat ion – 2023 11 8 8 Beneﬁts expected to be paid from plans Beneﬁts expected to be paid during 2025 83 76 20 Beneﬁts expected to be paid during 2026 85 115 17 Beneﬁts expected to be paid during 2027 88 97 17 Beneﬁts expected to be paid during 2028 90 104 17 Beneﬁts expected to be paid during 2029 92 113 16 Beneﬁts expected to be paid during 2030 to 2034 495 526 82 Fund values: 2024 2023 UK Fund Overseas plans UK Fund Overseas plans Quoted Unquoted Total Quoted Unquoted Total Quoted Unquoted Total Quoted Unquoted Total assets assets assets assets assets assets assets assets assets assets assets assets $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion At 31 December 2024 Equit ies 2 - 2 132 - 132 2 – 2 160 – 160 Government bonds 342 - 342 269 - 269 443 – 443 173 – 173 Corporate bonds 357 126 483 291 - 291 360 113 473 179 – 179 Hedge funds - 5 5 - - - – 9 9 – – – Infrastructure - 170 170 - - - – 166 166 – – – Property - 81 81 - 15 15 – 84 84 – – – Derivat ives 22 (1) 21 - - - 2 5 7 – – – Cash and equivalents 35 - 35 60 153² 213 66 – 66 37 166 203 Others 7 2 9 - 156 156 7 2 9 – 145 145 Total fair value of assets 1 765 383 1,148 752 324 1,076 880 379 1,259 549 311 860 1 Self-investment is monitored closely and is less than $1 mill ion of Standard Chartered equ it ies and bonds for 2024 (31 December 2023: <$1 m ill ion). Self- investment is only allowed where it is not practical to exclude it – for example through investment in index-tracking funds where the Group is a constituent of the relevant index 2 Cash and equivalents includes the value of insurance contracts held in Korea which invest only in short term money market instruments 30. Retirement beneﬁt obligat ions continued Financ ial statements Standard Chartered – Annual Report 2024 355 At 31 December 2024 At 31 December 2023 Funded plans Unfunded Funded plans Unfunded UK Fund Overseas Plans Plans UK Fund Overseas Plans Plans $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Total fair value of assets 1,148 1,076 N/A 1,259 860 N/A Present value of liab il it ies (1,070) (1,075) (180) (1,219) (877) (189) Net pension plan asset/(obligat ion) 78 1 (180) 40 (17) (189) Of which: Total pension assets in respect of plans in surplus 78 73 – 40 54 – Of which: Total pension obligat ions in respect of plans in deﬁc it – (72) (180) – (71) (189) The pension cost for deﬁned beneﬁt plans was: 2024 2023 Funded plans Funded plans Overseas Unfunded Overseas Unfunded UK Fund plans plans Total UK Fund plans plans Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Current service cost 1 – 44 8 52 – 39 11 50 Past service cost and curtailments 2 – 2 (1) 1 8 – 1 9 Settlement cost 3 – 3 – 3 – 2 – 2 Interest income on pension plan assets (56) (41) – (97) (57) (43) – (100) Interest on pension plan liab il it ies 54 41 8 103 56 41 8 105 Total charge to proﬁt before deduction of tax (2) 49 15 62 7 39 20 66 Losses/(gains) on plan assets 4 78 (32) – 46 (18) (52) (70) Losses/(gains) on liab il it ies (103) 6 (1) (98) 30 79 8 117 Total losses/(gains) recognised directly in statement of comprehensive income before tax (25) (26) (1) (52) 12 27 8 47 Deferred taxation 5 7 – 12 (1) (10) – (11) Total losses/(gains) after tax (20) (19) (1) (40) 11 17 8 36 1 Includes admin istrat ive expenses paid out of plan assets of $1 mill ion (2023:$1 m ill ion ) and actuar ial losses of $1 mill ion (2023: $2 m ill ion) that are immed iately recognised through P&L in line with the requirements of IAS 19 2 Relates to plan amendments in India 3 Terminat ion beneﬁts pa id from the pension plan in Indonesia 4 The actual return on the UK Fund assets was a loss of $22 mill ion (2023: $75 m ill ion ga in) and on overseas plan assets was a gain of $73 mill ion (2023: $95 m ill ion gain) Movement in the deﬁc it dur ing the year comprise: 2024 2023 Funded plans Funded plans Overseas Unfunded Overseas Unfunded UK Fund plans plans Total UK Fund plans plans Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Surplus/(Deﬁcit) 40 (17) (189) (166) 48 1 (177) (128) Contribut ions 13 39 16 68 8 59 14 81 Current service cost 1 – (44) (8) (52) – (39) (11) (50) Past service cost and curtailments – (2) 1 (1) (8) – (1) (9) Settlement costs and transfers impact – (3) – (3) – (2) – (2) Net interest on the net deﬁned beneﬁt asset/liab il ity 2 – (8) (6) 1 2 (8) (5) Actuarial (losses)/gains 25 26 1 52 (12) (27) (8) (47) Asset held for Sale – – – – – (7) 6 (1) Other Movement 2 – (1) – (1) – – – – Exchange rate adjustment (2) 3 7 8 3 (4) (4) (5) Surplus/(Deﬁcit) 78 1 (180) (101) 40 (17) (189) (166) 1 Includes admin istrat ive expenses paid out of plan assets of $1 mill ion (31 December 2023: $1 m ill ion) 2 This relates to the Standard Chartered India Provident Fund, which has previously been treated as a deﬁned contribut ion plan. However, w ith effect from November 2024, a min imum rate of return is applicable to the plan, and so going forward it will be treated as a deﬁned beneﬁt plan as required by IAS 19. For 2023 this included the impact of plans in Cameroon, Cote D’Ivoire, Jordan and Zimbabwe being excluded from the closing balances and classif ied separately under Assets held for Sale 30. Retirement beneﬁt obligat ions continued Financ ial statements Notes to the ﬁnancial statements 356 Standard Chartered – Annual Report 2024 The Group’s expected contribut ion to its deﬁned beneﬁt pension plans in 2025 is $ 68 mill ion. 2024 2023 Assets Obligat ions Total Assets Obligat ions Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion At 1 January 2024 2,119 (2,285) (166) 2,004 (2,132) (128) Contribut ions 1 69 (1) 68 82 (1) 81 Current service cost 2 – (52) (52) – (50) (50) Past service cost and curtailments – (1) (1) – (9) (9) Settlement costs 3 – (3) (3) – (2) (2) Interest cost on pension plan liab il it ies – (103) (103) – (105) (105) Interest income on pension plan assets 97 – 97 100 – 100 Beneﬁts paid out 2 (169) 169 – (161) 161 – Actuarial gains/(losses) 4 (46) 98 52 70 (117) (47) Asset held for Sale – – – (7) 6 (1) Other Movement 5 212 (213) (1) – – – Exchange rate adjustment (58) 66 8 31 (36) (5) At 31 December 2024 2,224 (2,325) (101) 2,119 (2,285) (166) 1 Includes employee contribut ions of $1 m ill ion (31 December 2023: $1 m ill ion) 2 Includes admin istrat ive expenses paid out of plan assets of $1 mill ion (31 December 2023: $1 m ill ion) 3 Impact of settlements relates terminat ion beneﬁts pa id out in Indonesia 4 Actuarial gain on obligat ion compr ises of $127 mill ion ga in (31 December 2023: $50 mill ion loss) from ﬁnancial assumpt ion changes, $1 mill ion ga in (31 December 2023: $1 mill ion loss) from demograph ic assumption changes and $30 mill ion loss (31 December 2023: $66 m ill ion loss) from exper ience 5 These are assets and liab il it ies of the Standard Chartered Ind ia Provident Fund, which has previously been treated as a deﬁned contribut ion plan. However, w ith effect from November 2024, a min imum rate of return is applicable to the plan, and so going forward it will be treated as a deﬁned beneﬁt plan as required by IAS 19 31. Share-based payments Accounting policy The Group operates equity-settled and cash-settled share-based compensation plans. The fair value of the employee services (measured by the fair value of the awards granted) received in exchange for the grant of the shares and awards is recognised as an expense. For deferred share awards granted as part of an annual performance award, the expense is recognised over the period from the start of the performance period to the vesting date. For example, the expense for three-year awards granted in 2024 in respect of 2023 performance, which vest in 2025-2027, is recognised as an expense over the period from 1 January 2023 to the vesting dates in 2025-2027. For all other awards, the expense is recognised over the period from the date of grant to the vesting date. For equity-settled awards, the total amount to be expensed over the vesting period is determined by reference to the fair value of the shares and awards at the date of grant, which excludes the impact of any non-market vesting condit ions (for example, proﬁtabil ity and growth targets). The fair value of equity instruments granted is based on market prices, if available, at the date of grant. In the absence of market prices, the fair value of the instruments is estimated using an appropriate valuation technique, such as a binom ial opt ion pric ing model. Non-market vest ing condit ions are included in assumptions for the number of shares and awards that are expected to vest. At each balance sheet date, the Group revises its estimates of the number of shares and awards that are expected to vest. It recognises the impact of the revis ion of or ig inal est imates, if any, in the income statement and a corresponding adjustment to equity over the remain ing vest ing period. Forfeitures prior to vesting attributable to factors other than the failure to satisfy service condit ions and non-market vest ing condit ions are treated as a cancellat ion and the remain ing unamortised charge is debited to the income statement at the time of cancellation. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when awards in the form of options are exercised. Cash-settled awards are revalued at each balance sheet date and a liab il ity recognised on the balance sheet for all unpaid amounts, with any changes in fair value charged or credited to staff costs in the income statement until the awards are exercised. Where forfeitures occur prior to vesting that are attributable to factors other than a failure to satisfy service condit ions or market-based performance cond it ions, the cumulat ive charge incurred up to the date of forfeiture is credited to the income statement. Other accounting estimates and judgements Share-based payments involve judgement and estimat ion uncerta inty exists when determin ing the expenses and carry ing values of share awards at the balance sheet date. • LTIP awards are determined using an estimat ion of the probab il ity of meet ing certain metrics over a three-year performance period using the Monte Carlo simulat ion model. • Deferred shares are determined using an estimat ion of expected d iv idends. • Sharesave Plan valuations are determined using a binom ial opt ion-pric ing model. 31. Share-based payments continued Financ ial statements Standard Chartered – Annual Report 2024 357 The Group operates a number of share-based arrangements for its executive directors and employees. Details of the share- based payment charge are set out below. 2024¹ 2023¹ Cash Equity Total Cash Equity Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Deferred share awards 31 160 191 34 103 137 Other share awards 34 109 143 19 70 89 Total share-based payments 2 65 269 334 53 173 226 1 No forfeiture assumed 2 The total share-based payments charge during the year includes costs relating to Business ventures. Business ventures are established as separate legal entit ies with their own employee share ownership plans (ESOP) to attract and incent iv ise talent. ESOPs have been set up with share-based payment charges recorded in 2024 with $2 mill ion (2023: $14 m ill ion) in cash settled and $14 mill ion (2023: $3 m ill ion) equ ity settled deferred awards spread across 19 entit ies Discret ionary share plans The 2021 Standard Chartered Share Plan (the ‘2021 Plan’) was approved by shareholders in May 2021 and is the Group’s main share plan, replacing the 2011 Standard Chartered Share Plan (the ‘2011 Plan’) for new awards from June 2021. It is used to deliver various types of share awards to employees and former employees of the Group, includ ing d irectors and former executive directors: Award type Descript ion and performance measures Valuation Long-Term Incentive The vesting of awards granted in 2024, 2023 and The fair value of the relative TSR component is Plan (LTIP) awards 2022 are subject to the following performance calculated using the probabil ity of meet ing the measures: measures over a three-year performance period, • relative total shareholder return (TSR); using a Monte Carlo simulat ion model. • return on tangible equity (RoTE) (with a The value of the remain ing components is based on Common Equity Tier 1 (CET1) underpin); and the expected performance against the RoTE and • strategic measures (includ ing targets set for strategic measures in the scorecard and the resulting sustainab il ity linked to business strategy) estimated number of shares expected to vest at each Each measure is assessed independently over a reporting date. These combined values are used to three-year period. LTIP awards have an ind iv idual determine the accounting charge. conduct gateway requirement that results in the No div idend equ ivalents accrue for the LTIP awards award lapsing if not met. made in 2024, 2023 or 2022 and the fair value takes this into account, calculated by reference to market consensus div idend y ield. Deferred shares Used to deliver: The fair value for deferred shares, which are granted • the deferred portion of year-end variable to employees who are not categorised as material risk remuneration, in line with both market practice takers, is based on 100 per cent of the face value of and regulatory requirements. These awards vest the shares at the date of grant as the share price will in instalments on anniversar ies of the award date reﬂect expectations of all future div idends. specif ied at the t ime of grant. This enables the For awards granted to material risk takers in 2024, Group to meet regulatory requirements relating to the fair value of awards takes into account the lack deferral levels, and is in line with market practice. of div idend equ ivalents, calculated by reference to • replacement buy-out awards to new joiners who market consensus div idend y ield. forfeit awards on leaving their previous employers. These vest in the quarter most closely following the date when the award would have vested at the previous employer. This enables the Group to meet regulatory requirements relating to buy-outs, and is in line with market practice. Deferred share awards are not subject to any performance measures. The remain ing l ife of the 2021 Standard Chartered Share Plan during which new awards can be made is seven years. LTIP awards 2024 2023 Grant date 12–March 13–March Share price at grant date (£) 6.60 7.40 Vesting period (years) 3–7 3–7 Expected div ided y ield (%) 4.2 3.1 Fair value (RoTE) (£) 1.55, 1.61, 1.68 1.91, 1.85 Fair value (TSR) (£) 0.95, 1.01, 1.06 1.08, 1.04 Fair value (Strategic) (£) 2.06, 2.15, 2.24 2.54, 2.46 31. Share-based payments continued Financ ial statements Notes to the ﬁnancial statements 358 Standard Chartered – Annual Report 2024 Deferred shares – year-end 2024 Grant date 17 June 11 March Share price at grant date (£) 7.24 6.56 Expected Expected div idend y ield Fair value div idend y ield Fair value Vesting period (years) (%) (£) (%) (£) 1-3 years N/A 9.17 4.2, 4.2 7.65, 8.30 1-5 years 3.8, 3.8, 3.8 8.05, 8.20, 4.2, 4.2, NA 7.19, 7.49, 8.30 3-7 years 8.35 4.2, 4.2 6.49, 6.76 2023 Grant date 18 September 19 June 13 March Share price at grant date (£) 7.43 6.75 7.40 Expected Expected Expected div idend div idend div idend yield Fair value yield Fair value yield Fair value Vesting period (years) (%) (£) (%) (£) (%) (£) 1-3 years N/A 7.43 3.3 6.75 3.1 7.4 1-5 years 3.0 6.51 3.3, 3.3 6.23, 5.83 3.1, 3.1 6.85, 6.65 3-7 years – – – – 3.1, 3.1, 6.65, 6.75, 3.1, 3.1 6.35, 6.16 Deferred shares – buy-outs 2024 Grant date 18-Nov 23-Sep 17-Jun 11-Mar Share price at grant date (£) 9.43 7.59 7.24 6.56 Expected Expected Expected Expected div idend div idend div idend div idend yield Fair value yield Fair value yield Fair value yield Fair value Vesting period (years) (%) (£) (%) (£) (%) (£) (%) (£) 3 months 4.2 9.59 3.8 9.07 4.2 8.22 4 months 4.2 11.83 6 months 4.2 9.49 3.8 8.99 4.2 8.14 7 months 4.2 11.69 9 months 4.2 9.4 3.8 8.90 4.2 8.06 10 months 1 year 4.2 11.22, 11.36 4.2 9.02, 9.11, 3.8 8.58, 8.66, 4.2 7.73, 7.81, 9.21, 9.30 8.74 7.89, 7.97 2 years 4.2 10.77, 4.2 8.65, 8.74, 3.8 8.26, 8.34 4.2 7.42, 7.50, 10.90 8.83, 8.93 7.57, 7.65 3 years 4.2 10.46 4.2 8.39 4.2 7.20, 7.34 4 years 4.2 10.04 4.2 7.05 5 years 2023 Grant date 20-Nov 18-Sep 19-Jun 13-Mar Share price at grant date (£) 6.60 7.43 6.75 7.40 Expected Expected Expected Expected div idend div idend div idend div idend yield Fair value yield Fair value yield Fair value yield Fair value Vesting period (years) (%) (£) (%) (£) (%) (£) (%) (£) 3 months 3.0 7.38 3.3 6.7 3.1 7.34 4 months 3.0 6.54 6 months 3.0 7.32 3.3 6.64 7 months 3.0 6.49 9 months 3.0 7.27 3.3 6.48, 6.59 10 months 3.0 6.44 1 year 3.0 6.25, 6.30, 3.0 7.06, 7.11, 3.3 6.18, 6.38, 3.1 7.12, 7.18 6.35, 6.39 7.16, 7.22 6.43, 6.54 2 years 3.0 6.12, 6.16, 3.0 6.85, 6.9, 3.3 5.98, 6.18, 3.1 6.91, 6.96 6.21 6.95, 7.01 6.33 3 years 3.0 5.94, 5.98, 3.0 6.65, 6.7, 3.3 5.79, 5.98, 3.1 6.70, 6.75 6.03 6.8 6.13 4 years 3.0 5.76 3.1 6.50, 6.55 5 years 3.1 6.35 31. Share-based payments continued Financ ial statements Standard Chartered – Annual Report 2024 359 All Employee Sharesave Plans Under the 2023 Sharesave Plan, employees may open a savings contract and save up to £500 (increased from £250 since 2024) per month over three years to purchase ordinary shares in the Company at a discount of up to 20 per cent (the ‘option exercise price’). The discount applies to higher of: the 5-day average share price prior to the inv itat ion or the closing share price on the last trading day prior to the inv itat ion. At the end of the savings contract they have a period of six months to exercise the option. There are no performance measures attached to Sharesave options, and no exercise price is payable to receive an option. In some countries in which the Group operates, it is not possible to operate equity-settled Sharesave, typically due to securit ies law and regulatory restrict ions. In these countr ies, where possible, the Group offers an equivalent cash-based alternative to its employees. The remain ing l ife of the 2023 Sharesave Plan during which new awards can be made is nine years. Valuation – Sharesave: Options under the Sharesave plans are valued using a binom ial opt ion-pric ing model. The same fa ir value is applied to all employees includ ing execut ive directors. The fair value per option granted and the assumptions used in the calculation are as follows: All Employee Sharesave Plan (Sharesave) 2024 2023 Grant date 23 September 18 September Share price at grant date (£) 7.59 7.35 Exercise price (£) 6.10 5.88 Vesting period (years) 3 3 Expected volatil ity (%) 32.9 36.7 Expected option life (years) 3.5 3.5 Risk-free rate (%) 3.88 4.48 Expected div idend y ield (%) 4.2 3.0 Fair value (£) 2.73 3.05 The expected volatil ity is based on histor ical volat il ity over the last three years, or the three years pr ior to grant. The expected life is the average expected period to exercise. The risk-free rate of return is the yield on zero-coupon UK Government bonds of a term consistent with the assumed option life. The expected div idend y ield is calculated by reference to market consensus div idend y ield. Lim its An award shall not be granted under the 2021 Plan in any calendar year if, at the time of its proposed grant, it would cause the number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years, ending with that calendar year, under the 2021 Plan and under any other discret ionary share plan operated by Standard Chartered PLC to exceed 5 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time. An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed grant, it would cause the number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years ending with that calendar year, under the 2021 Plan or 2023 Sharesave Plan and under any other employee share plan operated by Standard Chartered PLC to exceed 10 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time. An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed grant, it would cause the number of Standard Chartered PLC ordinary shares which may be issued or transferred pursuant to awards then outstanding under the 2021 Plan or 2023 Sharesave Plan as relevant to exceed such number as represents 10 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time. The number of Standard Chartered PLC ordinary shares which may be issued pursuant to awards granted to an ind iv idual under the 2021 or 2023 Plan in any 12-month period must not exceed 1 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time. As at 1 January 2024 and 31 December 2024, the shareholder dilut ion under our d iscret ionary and Sharesave plans adopted by Standard Chartered PLC and its subsid iar ies represented 4.5 per cent and 4.9 per cent of the issued ordinary share capital of Standard Chartered PLC respectively. Accordingly, the number of Standard Chartered PLC shares available to be granted under all discret ionary and Sharesave plans at the beg inn ing and the end of the year ended 31 December 2024 were 147,876,885 and 123,504,051 respectively. The maximum number of Standard Chartered PLC shares that may be issued in respect of share options and awards granted under the discret ionary and Sharesave plans dur ing the year ended 31 December 2024 div ided by the we ighted average number of Standard Chartered PLC shares in issue for the year ended 31 December 2024 is 1.5 per cent. Standard Chartered PLC has been granted a waiver from strict compliance with Rules 17.03A, 17.03B(1), 17.03E and 17.03(18) of the Rules Governing the List ing of Secur it ies on the Stock Exchange of Hong Kong. Deta ils are set out in the market announcement made on 30 March 2023. In relation to the waiver of strict compliance with Note 1 to 17.03(18), in 2024 no changes to the plan rules have been proposed that fall with in scope of d isclosure requirements under the terms of the waiver. 31. Share-based payments continued Financ ial statements Notes to the ﬁnancial statements 360 Standard Chartered – Annual Report 2024 Reconcil iat ion of share award movements for the year to 31 December 2024 Weighted average Sharesave Discret ionary 1 exercise price LTIP Deferred shares Sharesave 4,5 (£) Outstanding at 1 January 2024 10,947,382 47,068,204 16,902,217 4.49 Granted 2,3 2,320,695 25,712,216 9,707,454 – Lapsed 6 (2,703,518) (1,431,969) (1,289,780) 4.88 Vested/Exercised (923,866) (19,654,725) (4,754,780) 3.42 Outstanding at 31 December 2024 9,640,693 51,693,726 20,565,111 5.48 Total number of securit ies ava ilable for issue under the plan 9,640,693 51,693,726 20,565,111 5.48 Percentage of the issued shares this represents as at 31 December 2024 0.40 2.13 0.85 Exercisable as at 31 December 2024 – 250,094 1,121,867 3.78 Range of exercise prices (£) 3 – – 3.67 – 6.10 Intrins ic value of vested but not exerc ised options ($ mill ion) – 3.10 8.57 Weighted average contractual remain ing l ife (years) 7.32 8.22 2.58 Weighted average share price for awards exercised during the period (£) 6.60 6.68 8.20 1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards 2 2,315,422 (LTIP) granted on 12 March 2024; 5,059 (LTIP) granted as a notional div idend on 1 March 2024; 214 (LTIP) granted as a not ional div idend on 8 August 2024. 24,381,791 (Deferred shares) granted on 11 March 2024; 229,896 (Deferred shares) granted as a notional div idend on 1 March 2024; 463,694 (Deferred shares) granted on 17 June 2024; 86,702 (Deferred shares) granted as a notional div idend on 8 August 2024; 287,533 (Deferred shares) granted on 23 September 2024; 262,600 (Deferred shares) granted on 18 November 2024. 9,707,454 (Sharesave) granted on 23 September 2024 3 No discret ionary awards (LTIP or deferred/buy-out awards) have been granted in the form of options since June 2015. For histor ic awards granted as opt ions and exercised in the period to 31 December 2024, the exercise price of deferred/ buy-out shares options was nil 4 For Sharesave granted in 2024 the exercise price is £6.10 per share, a 20% discount from the closing share price on 16 August 2024 (£7.624). The average of the closing prices over the ﬁve days to the inv itat ion date of 19 August 2024 was £7.421 5 All Sharesave awards are in the form of options. The exercise price of Sharesave options is £ 6.10 for options granted in 2024 £ 5.88 for options granted in 2023, £4.23 for options granted in 2022, £3.67 for options granted in 2021 and £3.14 for options granted in 2020 6 No options or share awards were cancelled in the period Reconcil iat ion of share award movements for the year to 31 December 2023 Weighted average Sharesave Discret ionary 1 exercise price LTIP Deferred shares Sharesave (£) Outstanding at 1 January 2023 11,339,951 46,449,040 17,109,519 3.81 Granted 2,3 2,142,057 21,668,459 5,668,325 – Lapsed (1,911,931) (1,231,514) (1,407,502) 4.14 Exercised (622,695) (19,817,781) (4,468,125) 3.75 Outstanding at 31 December 2023 10,947,382 47,068,204 16,902,217 4.49 Total number of securit ies ava ilable for issue under the plan 10,947,382 47,068,204 16,902,217 Percentage of the issued shares this represents as at 31 December 2023 0.41 1.76 0.63 4.49 Exercisable as at 31 December 2023 – 685,077 2,482,392 3.16 Range of exercise prices (£) 3 – – 3.14 – 5.88 Intrins ic value of vested but not exerc ised options ($ mill ion) – 5.81 11.08 Weighted average contractual remain ing l ife (years) 7.59 8.11 2.30 Weighted average share price for awards exercised during the period (£) 6.94 7.04 6.65 1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards 2 2,134,238 (LTIP) granted on 13 March 2023, 6,501 (LTIP) granted as a notional div idend on 1 March 2023, 1318 (LTIP) granted as a not ional div idend on 1 September 2023, 20,828,385 (Deferred shares) granted on 13 March 2023, 121,314 (Deferred shares) granted as a notional div idend on 1 March 2023, 338,583 (Deferred shares) granted on 19 June 2023, 235,186 (Deferred shares) granted on 18 September 2023, 52,082 (Deferred shares) granted as a notional div idend on 1 September 2023, 92,909 (Deferred shares) granted on 20 November 2023; 5,668,325 (Sharesave) granted on 18 September 2023 under the 2023 Sharesave Plan 3 For Sharesave granted in 2023 the exercise price is £5.88 per share, a 20% discount from the average of the closing prices over the ﬁve days to the inv itat ion date of 21 August 2023. The closing share price on 18 August 2013 was £7.214 See pages 211 and 212 of the Standard Chartered PLC Annual Report 2023 for informat ion spec if ic to D irectors Financ ial statements Standard Chartered – Annual Report 2024 361 32. Investments in subsid iary undertak ings, jo int ventures and assoc iates Accounting policy Associates and jo int arrangements The Group did not have any contractual interest in jo int operat ions. Investments in associates and jo int ventures are accounted for by the equ ity method of accounting and are in it ially recognised at cost. The Group’s investment in associates and jo int ventures includes goodwill ident iﬁed on acqu is it ion (net of any accumulated impa irment loss). The Group’s share of its associates’ and jo int ventures’ post-acqu is it ion proﬁts or losses is recognised in the income statement, and its share of post-acquis it ion movements in other comprehensive income is recognised in reserves. The cumulative post-acquis it ion movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate or a jo int venture equals or exceeds its interest in the associate, includ ing any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligat ions or made payments on behalf of the associate or jo int venture. Unrealised gains and losses on transactions between the Group and its associates and jo int ventures are el im inated to the extent of the Group’s interest in the associates and jo int ventures. At each balance sheet date, the Group assesses whether there is any object ive ev idence of impa irment in the investment in associates and jo int ventures. Such ev idence includes a sign iﬁcant or prolonged decl ine in the fair value of the Group’s investment in an associate or jo int venture below its cost, among other factors. Sign iﬁcant account ing estimates and judgements The Group applies judgement in determin ing if it has control, jo int control or s ign iﬁcant inﬂuence over subsid iar ies, joint ventures and assoc iates respectively. These judgements are based upon ident ify ing the relevant activ it ies of counterparties, being those activ it ies that sign iﬁcantly affect the ent it ies returns, and further mak ing a decis ion of if the Group has control over those entit ies, joint control, or has s ign iﬁcant inﬂuence (being the power to partic ipate in the ﬁnancial and operat ing policy decis ions but not control them). These judgements are at times determined by equity holdings, and the voting rights associated with those holdings. However, further considerat ions includ ing but not l im ited to board seats, adv isory committee members and special ist knowledge of some decis ion-makers are also taken into account. Further judgement is required when determin ing if the Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity. Judgement is required to determine the relative size of the Group’s shareholding when compared to the size and dispers ion of other shareholders. Impairment testing of investments in associates and jo int ventures, and on a Company level investments in subsid iar ies is performed if there is a possible ind icator of impa irment. Judgement is used to determine if there is object ive ev idence of impa irment. Objective ev idence may be observable data such as losses incurred on the investment when applying the equity method, the granting of concessions as a result of ﬁnanc ial d iff iculty, or breaches of contracts/regulatory ﬁnes of the associate or jo int venture. Further judgement is required when consider ing broader ind icators of impa irment such as losses of active markets or ratings downgrades across key markets in which the associate or jo int venture operate in. Impairment testing is based on estimates includ ing forecast ing the expected cash ﬂows from the investments, growth rates, terminal values and the discount rate used in calculation of the present values of those cash ﬂows. The estimat ion of future cash ﬂows and the level to which they are discounted is inherently uncertain and requires sign iﬁcant judgement. Business combinat ions The acquis it ion method of accounting is used to account for the acquis it ion of subsid iar ies by the Group. In the Company’s ﬁnancial statements, investment in subsid iar ies, associates and jo int ventures are held at cost less impa irment and d iv idends from pre-acqu is it ion proﬁts received prior to 1 January 2009, if any. Inter-company transactions, balances and unrealised gains and losses on transactions between Group companies are elim inated in the Group accounts. 2024 2023 Investments in subsid iary undertak ings $mill ion $mill ion As at 1 January 60,791 60,975 Addit ions 1 1,631 1,566 Disposal 2 (803) (1,750) Other Movements 3 (26) – As at 31 December 61,593 60,791 1 Includes internal Addit ional T ier 1 Issuances of $980 mill ion by Standard Chartered Bank, $600 m ill ion by Standard Chartered Bank (Hong Kong) L im ited (31 December 2023: Includes internal Addit ional T ier 1 Issuances of $992 mill ion by Standard Chartered Bank, $575 m ill ion add it ional investment in Standard Chartered Holdings Lim ited) 2 Includes redemption of Preference share capital of $553 mill ion by Standard Chartered Bank S ingapore Lim ited and add it ional T ier 1 capital of $250 mill ion by Standard Chartered Bank (Hong Kong) Lim ited (31 December 2023: Add it ional T ier1 capital of $1,000 mill ion by Standard Chartered Bank) 3 Relates to realised translation gain ($26 mill ion) on redempt ion of AT1 securit ies of SGD 750 m ill ion ($553 m ill ion) 32. Investments in subsid iary undertak ings, jo int ventures and assoc iates continued 362 Standard Chartered – Annual Report 2024 Financ ial statements Notes to the ﬁnancial statements At 31 December 2024, the princ ipal subs id iary undertak ings, all ind irectly held except for Standard Chartered Bank (Hong Kong) Lim ited, and pr inc ipally engaged in the business of banking and provis ion of other ﬁnancial serv ices, were as follows: Group interest in ordinary share capital Total Issued share capital Princ ipal subs id iary¹ Main areas of operation % (mill ions) Standard Chartered Bank Refer footnote³ 100 US$ 20,597⁴ Standard Chartered Bank (Hong Kong) Lim ited Hong Kong 100 Refer footnote⁵ Standard Chartered Bank (Singapore) Lim ited Singapore 100 Refer footnote⁶ Standard Chartered Bank Korea Lim ited Korea 100 KRW 1,313,043 Standard Chartered Bank (China) Lim ited² China 100 CNY 10,727 Standard Chartered Bank (Taiwan) Lim ited Taiwan 100 TWD 29,106 Standard Chartered Bank AG Germany 100 EUR 180 Standard Chartered Bank Malaysia Berhad Malaysia 100 RM 880⁷ Standard Chartered Bank (Thai) Public Company Lim ited Thailand 99.87 THB 14,837 Standard Chartered Bank (Pakistan) Lim ited Pakistan 98.99 PKR 38,716 Standard Chartered Bank Botswana Lim ited Botswana 75.83 BWP 298 Standard Chartered Bank Kenya Lim ited Kenya 74.32 KES 2,169⁸ Mox Bank Lim ited Hong Kong 71.58 HKD 5,279 Standard Chartered Bank Nepal Lim ited Nepal 70.21 NPR 9,429 Standard Chartered Bank Ghana PLC Ghana 69.42 GHS 409⁹ 1 Unless other wise stated the share capital comprises of ordinary or common shares refer to note 40 for proportion of shares held and for country of incorporation 2 Registered as a Lim ited company under the Law of Ch ina 3 Includes United Kingdom, Middle East, South Asia, Asia Pacif ic, Amer icas and, through Group companies, Africa 4 US$1.00 Ordinary 20,596,529,642; US$0.01 Non-Cumulative Irredeemable Preference 24,000 and US$5.00 Non-Cumulative Redeemable Preference 37500 5 HKD Ordinary-A 12,502,836,515; HKD Ordinary-B -78,000,000; US$ Ordinary-C 2,698,156,122 and US$ Ordinary-D 3,010,485,610 6 SGD Ordinary-A 1,653,000,000; SGD Non-cumulative Class D Tier-1 Preference 400,000,000; US$ Ordinary-A 3,383,000,000; US$ Non-cumulative Class B Tier-1 Preference 500,000,000; US$ Ordinary-B 733,000,000 and US$ Ordinary-C 333,000,000 7 RM Ordinary 499,999,988 and RM Irredeemable Convertible Preference 380,190,000 8 KES5.00 Ordinary 1,889,252,945 and KES5.00 Preference 280,000,000 9 GHS Ordinary 400,000,000 and GHS0.52 Non-cumulative Irredeemable Preference Shares 9,092,858 A complete list of subsid iary undertak ing is included in Note 40. The Group does not have any material non-controlling interest except as listed above, which contribute $36 mill ion (31 December 2023: $35 mill ion) of the (loss)/Proﬁt attr ibutable to non-controlling interest and $292 mill ion (31 December 2023: $290 mill ion) of the equ ity attributable to non-controlling interests During 2024 the Group disposed of its investments in subsid iar ies and the gain/loss on disposal was SCB Zimbabwe Lim ited & Africa Enterprise Network Trust (loss:$172 mill ion includ ing translat ion adjustment loss: $190 mill ion), SCB Angola S.A. (loss: $26 mill ion includ ing translat ion adjustment loss:$31 mill ion), SCB S ierra Leone Lim ited (loss: $19 m ill ion includ ing translat ion adjustment loss:$25 mill ion), Shoal L im ited (ga in:$14 mill ion) and Autumn l ife Pte. Ltd. (gain:$3 mill ion). While the Group’s subsid iar ies are subject to local statutory capital and liqu id ity requirements in relation to foreign exchange remittance, these restrict ions ar ise in the normal course of business and do not sign iﬁcantly restr ict the Group’s abil ity to access or use assets and settle liab il it ies of the Group. The Group does not have sign iﬁcant restr ict ions on its abil ity to access or use its assets and settle its liab il it ies other than those resulting from the regulatory framework with in wh ich the banking subsid iar ies operate. These frameworks require banking operations to keep certain levels of regulatory capital, liqu id assets, exposure l im its and comply w ith other required ratios. These restrict ions are summar ised below: Regulatory and liqu id ity requirements The Group’s subsid iar ies are required to mainta in m in imum cap ital, leverage ratios, liqu id ity and exposure ratios which therefore restrict the abil ity of these subs id iar ies to distr ibute cash or other assets to the parent company. The subsid iar ies are also required to mainta in balances w ith central banks and other regulatory authorit ies in the countries in which they operate. At 31 December 2024, the total cash and balances with central banks was $63 bill ion (31 December 2023: $70 bill ion) of wh ich $8 bill ion (31 December 2023: $6 b ill ion) is restricted. Statutory requirements The Group’s subsid iar ies are subject to statutory requirements not to make distr ibut ions of capital and unrealised proﬁts to the parent company, generally to mainta in solvency. These requ irements restrict the abil ity of subs id iar ies to remit div idends to the Group. Certain subsid iar ies are also subject to local exchange control regulations which provide for restrict ions on export ing capital from the country other than through normal div idends. 32. Investments in subsid iary undertak ings, jo int ventures and assoc iates continued Standard Chartered – Annual Report 2024 Financ ial statements 363 Contractual requirements The encumbered assets in the balance sheet of the Group’s subsid iar ies are not available for transfer around the Group. Share of proﬁt from investment in associates and jo int ventures compr ises: 2024 2023 $mill ion $mill ion Loss from Investment in Joint Ventures (10) (13) Proﬁt from Investment in Associates 118 154 Total 108 141 2024 2023 Interests in associates and jo int ventures $mill ion $mill ion As at 1 January 966 1,631 Exchange translation difference (40) 16 Addit ions 1 22 64 Share of proﬁts 108 141 Div idend rece ived 2 (36) (11) Impairment – (872) Share of FVOCI and Other reserves 9 (7) Other movements 3 (9) 4 As at 31 December 1,020 966 1 Includes non-cash considerat ion of $6.4 m ill ion (d isposal of Autumn Life) from Vault 22 Solutions Holdings Ltd and $3.6 mill ion (convert ible notes) from Verif ied Impacts Holdings Pte Ltd 2 Includes $30 mill ion cap ital distr ibut ion from Ascenta IV 3 Includes Investment in Seychelles International Mercantile Banking Corporation Lim ited class if ieds as held for sale A complete list of the Group’s interest in associates is included in Note 40. The Group’s princ ipal assoc iates are: Group interest in ordinary Nature of Main areas share capital Associate activ it ies of operation % China Bohai Bank Banking China 16.26 CurrencyFair Lim ited Exchange Ireland Banking Ireland 43.42 The Group’s ownership percentage in China Bohai Bank is 16.26%. Although the Group’s investment in China Bohai Bank is less than 20 per cent, it is an associate because of the sign iﬁcant inﬂuence the Group can exercise over its management and ﬁnanc ial and operat ing polic ies. Th is inﬂuence is exercised through Board representation and the provis ion of techn ical expertise to Bohai. The Group applies the equity method of accounting for investments in associates. If the Group did not have sign iﬁcant inﬂuence over Bohai, the investment would be measured at fair value rather than the current carrying value, which is based on the applicat ion of the equ ity method as described in the accounting policy note. Bohai publishes their results after the Group. As it is impract icable for Boha i to prepare ﬁnanc ial statements sooner, the Group recognises its share of Bohai’s earnings on a three-month lag basis. Therefore, the Group recognised its share of Bohai’s proﬁts and movements in other comprehensive income for the 12 months ended 30 September 2024 in the Group’s consolidated statement of income and consolidated statement of comprehensive income for the year ended 31 December 2024, also consider ing any known changes or events in the subsequent period from 1 October 2024 to 31 December 2024 that would have materially affected Bohai’s results. 32. Investments in subsid iary undertak ings, jo int ventures and assoc iates continued 364 Standard Chartered – Annual Report 2024 Financ ial statements Notes to the ﬁnancial statements Impairment testing On 31 December 2024, the listed equity value of Bohai is below the carrying amount of the Group‘s investment in associate. The Group assessed the carrying value of its investment in Bohai for impa irment and concluded that no impa irment was required for the period ended 31 December 2024 ($850 mill ion for the year ended 31 December 2023; $1,459 m ill ion of accumulated impa irment as at 31 December 2024) . The carry ing value of the Group’s investment in Bohai of $738 mill ion (2023: $700 mill ion) represents the h igher of the value in use and fair value less costs of disposal. The ﬁnanc ial forecasts used in the recoverable amount, a value in use (VIU) calculation, reﬂects Group management’s best estimate of Bohai’s future earnings, in line with current economic condit ions and latest Boha i’s reported results. 31.12.24 31.12.23 Bohai $mill ion $mill ion VIU 738 700 Carrying amount 1 738 700 Market capital isat ion 2 338 418 1 The Group’s 16.26% share in the net assets less other equity instruments which the Group does not hold 2 Number of shares held by the Group multipl ied by the quoted share pr ice at period end Basis of recoverable amount The impa irment test was performed by compar ing the recoverable amount of Bohai, determined as the higher of VIU and fair value less costs to dispose, with its carrying amount. The VIU is calculated using a div idend d iscount model (DDM), which estimates the distr ibutable future cashﬂows to the equ ity holders, after adjusting for regulatory cap ital requirements, for a 5-year period, after which a terminal value (TV) is calculated based on the Price to Earnings (P/E) exit multiple. The key assumptions in the VIU are as follows: • Short to medium term project ions are based on Group management’s best est imates of future proﬁts available to ordinary shareholders and have been determined with reference to the latest published ﬁnanc ial results, the h istor ical performance of Bohai and forward looking macro-economic variables for Mainland China. • The projections use ava ilable informat ion and include normalised performance over the forecast period, inclus ive of: ( i) balance sheet growth assumptions based on the short to medium term GDP growth rates for Mainland China; (i i) Net Interest Income (NII) projecting interest income (primar ily the 1-year Loan Pr ime Rate, 1-year LPR, as basis) and interest expenses (Shanghai Interbank Offered Rate, 3m SHIBOR, as basis) which reference to forecast third party market interest rates plus/ minus a observed histor ical spread to the benchmark rate; ( i i i) Non-interest income estimated according to the latest available performance of Bohai, with considerat ion of the contr ibut ion of the const ituent parts of the non-interest income; (iv) ECL assumptions using Bohai’s histor ical reported ECL, based on the proport ion of ECL from loans and advances to customers and ﬁnancial investments measured at amortised cost and FVOCI; and (v) Statutory tax rate of 25% was applied to the taxable proﬁt of Bohai, after considerat ion of taxable and non-taxable elements, cons istent with histor ical reported results; • The distr ibutable reserves under the DDM are calculated as the d ifference between the capital resources and the capital requirements in each of the forecast periods. The calculation assumes a target CET 1 capital ratio and risk weighted asset (RWA) growth consistent with total assets. • The discount rate applied to these cash ﬂows was estimated with reference to a capital asset pric ing model (CAPM), wh ich includes a long-term risk-free rate, beta, and company risk premium assumptions for Bohai; and • A long-term average P/E multiple of comparable companies is used to derive a TV after the 5-year forecast period. The VIU model was reﬁned during 2024 to include more granular forecasting assumptions for each period. While it is impract icable for the Group to est imate the impact on future periods, the key changes to the 2024 model are summarised as follows: • Separately forecast interest income and interest expenses, by applying an estimated yield and cost to forecasted interest- earning assets and interest-bearing liab il it ies of each forecast per iod. In the previous model, net interest income was estimated by applying a net interest margin (NIM) percentage to the interest earning assets of each period. • Non-interest income was calculated by applying the histor ical average return on the respect ive components of the non- interest income, grown at the relevant GDP rate for Mainland China, over the forecasted period. In the previous model, the non-interest income was projected based on the latest actual results reported by Bohai and grown according to long-term GDP rate • A statutory tax rate of 25% was applied to the taxable proﬁt of Bohai, after considerat ion of taxable and non-taxable elements, consistent with the 5yr-average of histor ical reported results. In prev ious model, the calculation of the tax expenses was based on the reported effective tax rate as per published ﬁnanc ial statements of Boha i; and • A P/E multiple was used to calculate the TV. The Gordon Growth model was used in the previous period. The Group will continue to evaluate the TV under both methods. 32. Investments in subsid iary undertak ings, jo int ventures and assoc iates continued Standard Chartered – Annual Report 2024 Financ ial statements 365 The key assumptions used for the VIU calculation: 31.12.24 31.12.23 Post-tax discount rate 1 10.5% 11.0% Total balance-sheet (and risk weighted assets) growth rate 3.77% – 4.52% 4.00% P/E multiple used to calculate TV² 5.6x N/A Interest income 3 3.00%–3.56% N/A Interest expense 3 1.77%–2.01% N/A Net fee income growth rate 3.77%–4.52% 4.00% Expected credit losses as a percentage of customer loans 4 0.84%–1.36% 0.80%–1.24% Expected credit losses as a percentage of ﬁnanc ial investments measured at amortised cost and FVOCI 4 0.48%–1.26% 0.35%–0.67% Tax expense 5 5.4% – 14.1% 12.0% – 16.0% Capital maintenance ratio 8.00% 8.00% 1 Pre-tax Discount rate of 15.31% was used in 2024 (2023: 13.68%). The difference in pre-tax discount rates relates to changes in effective tax rate 2 P/E multiple approach was introduced in 2024, therefore comparative not applicable to previous period 3 1yr LPR and 3m SHIBOR rate forecasts were sourced from an external third-party provider, and with a spread derived from long term histor ical averages, are used to produce the interest income and interest expense forecasts. These assumptions were introduced in 2024 and are therefore not applicable to previous period. For 31 December 2023, NIM range of 1.21%-1.48% was used in the model 4 The low end of the range is based on histor ical loss rates, and the h igh end of the range includes adjustments for incremental judgemental management overlays 5 The tax rates disclosed are the impl ied effect ive tax rates (%) over the 5-yr forecast period. The 31 December 2024 tax expense forecasts, calculated from the taxable proﬁt, considered the 5-year histor ical average of non-taxable income (16.09%) and non-deductible expenses (12.53%). A statutory tax rate of 25% was applied to the taxable proﬁt of Bohai, after considerat ion of taxable and non-taxable elements. In per iods when losses are forecast, the effective tax rate applied was 0%. For the 31 December 2023 VIU, the calculation of the tax expenses was based on the reported effective tax rate. The 5-year histor ical average effect ive tax rate (2019 to 2023) of Bohai is 11.5%, with the 5-year low being 1.6% (2023) and the 5-year high being 17.3% (2019) The table below discloses sensit iv it ies to the key assumpt ions of Bohai, according to management’s judgement of reasonably possible changes. Changes were applied to every cash ﬂow year on an ind iv idual basis. The percentage change to the assumptions reﬂects the level at which management assess the reasonableness of the assumptions used and their impact on the Value in Use. Key assumption Key assumption increase decrease Increase/ Increase/ (decrease) (decrease) in VIU in VIU Sensit iv it ies basis points $ mill ion $ mill ion Discount Rate 100 (31) 33 Total balance sheet (and risk weighted asset) growth rate 100 (26) 24 P/E multiple used to calculate TV 1.0x 120 (120) Net interest income – Scenario 1¹ 10 (15) 15 Net interest income – Scenario 2² Various² 360 (230) Net fee income 100 43 (42) Expected credit losses as a percentage of customer loans 10 (147) 145 Expected credit losses as a percentage of ﬁnanc ial investments measured at amortised cost and FVOCI 10 (78) 77 Tax expense 3 300 23 (23) Capital maintenance ratio 50 (142) 142 1 In September 2024, the People’s Bank of China announced a stimulus package aimed at guid ing the loan pr ime rate and deposit rates downward in tandem, ensuring the stabil ity of commerc ial banks’ net interest margins. This scenario assumes that 1yr LPR and 3m SHIBOR increase or decrease by the same amount, to demonstrate the impact on the VIU of a sim ilar scenar io 2 An alternative scenario is that Bohai’s asset yield and liab il ity cost move in the same direct ion, albe it by different amounts, through the ﬁve year forecast period includ ing the term inal value. The key assumption increase sensit iv ity assumes that asset yields increase by 25 basis points and liab il ity costs increase by 10 basis points in each period. The key assumption decrease sensit iv ity assumes that asset yields decrease by 25 basis points and liab il ity costs decrease by 15 basis points in each period 3 Changes in tax expense applied only to both average percentages of non-taxable income (16.09%) and non-deductible expenses (12.53%). Refer to footnote 5 of the key assumptions table for more details The following table sets out the summarised ﬁnanc ial statements of Ch ina Bohai Bank prior to the Group’s share of the associate’s proﬁt being applied: 30.09.24 30.09.23 $mill ion $mill ion Total assets 244,510 246,212 Total liab il it ies 229,259 230,101 Operating income 1 3,583 3,640 Net proﬁt 2 681 811 Other comprehensive income 1 69 (38) 1 This represents twelve months of earnings (1 October to 30 September) 2 Bohai only publishes its effective tax rate on a semi-annual basis. The effective tax rate of Bohai for the period that ended 30 June 2024 was 10.1% (1.6%, 31 December 2023) Financ ial statements Notes to the ﬁnancial statements 366 Standard Chartered – Annual Report 2024 33. Structured entit ies Accounting policy Structured entit ies are consol idated when the substance of the relationsh ip between the Group and the structured ent ity ind icates the Group has power over the contractual relevant act iv it ies of the structured entity, is exposed to variable returns, and can use that power to affect the variable return exposure. In determin ing whether to consol idate a structured entity to which assets have been transferred, the Group takes into account its abil ity to d irect the relevant activ it ies of the structured entity. These relevant activ it ies are generally evidenced through a unilateral right to liqu idate the structured ent ity, investment in a substantial proportion of the securit ies issued by the structured entity or where the Group holds specif ic subord inate securit ies that embody certa in controlling rights. The Group may further consider relevant activ it ies embedded with in contractual arrangements such as call opt ions which give the practical abil ity to d irect the entity, special relationsh ips between the structured ent ity and investors, and if a single investor has a large exposure to variable returns of the structured entity. Judgement is required in determin ing control over structured ent it ies. The purpose and des ign of the entity is considered, along with a determinat ion of what the relevant act iv it ies are of the entity and who directs these. Further judgements are made around which investor is exposed to and absorbs the variable returns of the structured entity. The Group will have to weigh up all of these facts to consider whether the Group, or another involved party is acting as a princ ipal in its own right or as an agent on behalf of others. Judgement is further required in the ongoing assessment of control over structured entit ies, spec if ically if market condit ions have an effect on the var iable return exposure of different investors. Interests in consolidated structured entit ies: A structured entity is consolidated into the Group’s ﬁnanc ial statements where the Group controls the structured entity, as per the determinat ion in the accounting policy above. The following table presents the Group’s interests in consolidated structured entit ies. 31.12.24 31.12.23 $mill ion $mill ion Shipp ing lease 14 52 Princ ipal and other structured ﬁnance 474 353 Total 488 405 Interests in unconsolidated structured entit ies: Unconsolidated structured entit ies are all structured ent it ies that are not controlled by the Group. The Group enters into transactions with unconsolidated structured entit ies in the normal course of business to facil itate customer transact ions and for specif ic investment opportunit ies. An interest in a structured entity is contractual or non-contractual involvement which creates variab il ity of the returns of the Group aris ing from the performance of the structured entity. The table below presents the carrying amount of the assets recognised in the ﬁnanc ial statements relat ing to variable interests held in unconsolidated structured entit ies, the max imum exposure to loss relating to those interests and the total assets of the structured entit ies. Max imum exposure to loss is primar ily l im ited to the carry ing amount of the Group’s on-balance sheet exposure to the structured entity. For derivat ives, the max imum exposure to loss represents the on-balance sheet valuation and not the notional amount. For commitments and guarantees, the maximum exposure to loss is the notional amount of potential future losses. 2024 2023 Asset- Princ ipal Asset- Princ ipal backed Structured Finance Other backed Structured Finance Other securit ies Lending Finance funds activ it ies Total securit ies Lending ﬁnance funds activ it ies Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Group’s interest – assets Financ ial assets held at fair value through proﬁt or loss 1,222 255 178 124 – 1,779 954 269 143 137 – 1,503 Loans and advances/ Investment securit ies at amortised cost 16,305 16,735 12,656 – 97 45,793 17,795 15,105 13,353 – 190 46,443 Investment securit ies (fa ir value through other comprehensive income) 2,371 – – – – 2,371 2,443 – – – – 2,443 Other assets – – 1 – – 1 – – 34 – – 34 Total assets 19,898 16,990 12,835 124 97 49,944 21,192 15,374 13,530 137 190 50,423 Off-balance sheet – 11,075 6,901 63 73 18,112 – 8,869 6,691 – 20 15,580 Group’s maximum exposure to loss 19,898 28,065 19,736 187 170 68,056 21,192 24,243 20,221 137 210 66,003 Total assets of structured entit ies 129,864 17,579 14,758 226 – 162,427 191,627 15,374 31,806 250 1,688 240,745 33. Structured entit ies continued Financ ial statements Standard Chartered – Annual Report 2024 367 The main types of activ it ies for which the Group util ises unconsol idated structured entit ies cover synthet ic credit default swaps for managed investment funds (includ ing spec ial ised Pr inc ipal F inance funds), portfolio management purposes, structured ﬁnance and asset-backed securit ies. These are deta iled as follows: • Asset-backed securit ies (ABS): The Group also has investments in asset-backed securit ies issued by third-party sponsored and managed structured entit ies. For the purpose of market mak ing and at the discret ion of ABS trad ing desk, the Group may hold an immater ial amount of debt secur it ies from structured ent it ies or ig inated by cred it portfolio management. This is disclosed in the ABS column above. • Portfolio management (Group sponsored entit ies): For the purposes of portfolio management, the Group purchased credit protection via synthetic credit default swaps from note-issu ing structured ent it ies. Th is credit protection creates credit risk which the structured entity and subsequently the end investor absorbs. The referenced assets remain on the Group’s balance sheet as they are not assigned to these structured entit ies. The Group cont inues to own or hold all of the risks and returns relating to these assets. The credit protection obtained from the regulatory-compliant securit isat ion only serves to protect the Group against losses upon the occurrence of elig ible cred it events and the underlying assets are not derecognised from the Group’s balance sheet. The Group does not hold any equity interests in the structured entit ies, but may hold an ins ign if icant amount of the issued notes for market making purposes. This is disclosed in the ABS section above. The proceeds of the notes’ issuance are typically held as cash collateral in the issuer’s account operated by a trustee or invested in AAA- rated government-backed securit ies to collateral ise the structured entit ies swap obl igat ions to the Group, and to repay the princ ipal to investors at maturity. The structured entit ies re imburse the Group on actual losses incurred, through the use of the cash collateral or realisat ion of the collateral secur ity. Correspondingly, the structured entit ies wr ite down the notes issued by an equal amount of the losses incurred, in reverse order of senior ity. All fund ing is committed for the life of these vehicles and the Group has no ind irect exposure in respect of the vehicles’ liqu id ity posit ion. The Group has reputat ional risk in respect of certain portfolio management vehicles and investment funds either because the Group is the arranger and lead manager or because the structured entit ies have Standard Chartered brand ing. • Structured ﬁnance: Structured ﬁnance comprises interests in transactions that the Group or, more usually, a customer has structured, using one or more structured entit ies, wh ich provide beneﬁc ial arrangements for customers. The Group’s exposure primar ily represents the prov is ion of fund ing to these structures as a ﬁnanc ial intermed iary, for wh ich it receives a lender’s return. The transactions largely relate to real estate ﬁnanc ing and the prov is ion of a ircraft leasing and ship ﬁnance. • Princ ipal F inance Fund: The Group’s exposure to Princ ipal F inance Funds represents committed or invested capital in unleveraged investment funds, primar ily invest ing in pan-Asian infrastructure, real estate and private equity. • Other activ it ies: Other activ it ies include structured entit ies created to support marg in ﬁnanc ing transact ions, the reﬁnanc ing of exist ing cred it and debt facil it ies, as well as setting up of bankruptcy remote structured entit ies. In the above table, the Group determined the total assets of the structured entit ies us ing following bases: • Asset Backed Securit ies, Pr inc ipal F inance, and other activ it ies are based on the published total assets of the structured entit ies • Lending and Structured Finance are estimated based on the Group’s loan values to the structured entit ies 34. Cash ﬂow statement Adjustment for non-cash items and other adjustments included with in income statement Group Company 2024 2023 2024 2023 $mill ion $mill ion $mill ion $mill ion Amortisat ion of d iscounts and premiums of investment securit ies (815) (704) – – Interest expense on subordinated liab il it ies 744 951 578 632 Interest expense on senior debt securit ies in issue 2,584 2,068 1,855 1,434 Other non-cash items (122) (227) (12) 8 Net loss/(gain) on sale of businesses 210¹ (351) – – Pension costs for deﬁned beneﬁt schemes 62 61 – – Share-based payment costs 334 219 – – Impairment losses on loans and advances and other credit risk provis ions 547 508 – – Div idend income from subsid iar ies – – (4,101) (4,738) Other impa irment 588 1,008 – – Gain on disposal of property, plant and equipment (23) (31) – – Loss on disposal of FVOCI and AMCST ﬁnanc ial assets 264 209 – – Depreciat ion and amort isat ion 1,126 1,071 – – Fair value changes taken to income statement (2,140) (1,666) 9 (202) Foreign Currency revaluation (583) 299 1 19 Proﬁt from associates and jo int ventures (108) (141) – – Total 2,668 3,274 (1,670) (2,847) 1 Refer note 6 (page 303) Financ ial statements Notes to the ﬁnancial statements 34. Cash ﬂow statement continued 368 Standard Chartered – Annual Report 2024 Change in operating assets 2024 2023 2024 2023 $mill ion $mill ion $mill ion $mill ion (Increase)/decrease in derivat ive ﬁnancial instruments (31,939) 13,061 (32) (19) (Increase)/decrease in debt securit ies, treasury b ills and equity shares held at fair value through proﬁt or loss (25,823) (29,477) 376 (4,068) Increase in loans and advances to banks and customers (13,776) (787) – – Net (increase)/decrease in prepayments and accrued income (224) 82 – – Net decrease in other assets 5,331 2,663 338 268 Total (66,431) (14,458) 682 (3,819) Change in operating liab il it ies 2024 2023 2024 2023 $mill ion $mill ion $mill ion $mill ion Increase/(Decrease) in derivat ive ﬁnancial instruments 26,951 (13,629) (39) (239) Net increase in deposits from banks, customer accounts, debt securit ies in issue, Hong Kong notes in circulat ion and short pos it ions 7,253 17,877 613 4,479 Increase in accruals and deferred income 79 1,106 101 153 Net increase/(decrease) in other liab il it ies 5,090 (3,377) (1,574) (1,154) Increase in amount due to parents/subsid iar ies/other related parties – – 35 – Total 39,373 1,977 (864) 3,239 Disclosures Group Company 2024 2023 2024 2023 $mill ion $mill ion $mill ion $mill ion Subordinated debt (includ ing accrued interest): Opening balance 12,216 13,928 12,123 13,895 Proceeds from the issue – 18 – – Interest paid (519) (563) (505) (545) Repayment (1,517) (2,160) (1,517) (2,160) Foreign exchange movements (191) 146 (190) 146 Fair value changes from hedge accounting 48 311 97 271 Accrued interest and Others 499 536 483 516 Closing balance 10,536 12,216 10,491 12,123 Senior debt (includ ing accrued interest): Opening balance 41,350 32,288 17,518 14,080 Proceeds from the issue 11,044 15,261 3,887 5,105 Interest paid (1,366) (1,145) (708) (434) Repayment (11,185) (6,471) (2,619) (2,037) Foreign exchange movements (454) (21) (248) (2) Fair value changes from hedge accounting 42 119 6 188 Accrued interest and Others 1,145 1,319 824 618 Closing balance 40,576 41,350 18,660 17,518 35. Cash and cash equivalents Accounting policy Cash and cash equivalents includes: • Cash on hand and balances at central banks’ that are on demand or placements which are contractually due to mature overnight only, except for restricted balances; and • Other balances listed in the table below, when they have less than three months’ maturity from the date of acquis it ion, are not subject to contractual restrict ions, are subject to ins ign if icant changes in value, are highly liqu id and are held for the purpose of meeting short-term cash commitments. This includes products such as treasury bills and other elig ible bills, short-term government securit ies, loans and advances to banks ( includ ing reverse repos), and loans and advances to customers (only non demand or non overnight placements at central banks), which are held for appropriate business purposes. On demand accounts with non central banks are reported as part of ‘Loans & Advances to banks’. 35. Cash and cash equivalents continued Financ ial statements Standard Chartered – Annual Report 2024 369 Group Company 2024 2023 2024 2023 $mill ion $mill ion $mill ion $mill ion Cash and balances at central banks 63,447 69,905 – – Less: restricted balances (7,799) (6,153) – – Treasury bills and other elig ible b ills 5,472 5,931 – – Loans and advances to banks 9,654 11,879 – – Loans and advances to Customers 18,120 25,829 – – Investments 1,034 244 – – Amounts owed by and due to subsid iary undertak ings – – 11,601 10,294 Total 89,928 107,635 11,601 10,294 36. Related party transactions Directors and ofﬁcers Details of directors’ remuneration and interests in shares are disclosed in the Directors’ remuneration report. IAS 24 Related party disclosures requires the following addit ional informat ion for key management compensat ion. Key management comprises non-executive directors, executive directors of Standard Chartered PLC, the Court directors of Standard Chartered Bank and the persons discharg ing manager ial responsib il it ies (PDMR) of Standard Chartered PLC. 2024 2023 $mill ion $mill ion Salaries, allowances and beneﬁts in kind 41 42 Share-based payments 38 26 Bonuses paid or receivable 7 5 Terminat ion beneﬁts 2 – Total 88 73 Transactions with directors and others As at 31 December 2024, the total amounts to be disclosed under the Companies Act 2006 (the Act) and the List ing Rules of the Hong Kong Stock Exchange Lim ited (Hong Kong L ist ing Rules) about loans to d irectors were as follows: 2024 2023 Number $mill ion Number $mill ion Directors 1 3 – 4 – 1 Outstanding loan balances were below $50,000 The loan transactions provided to the directors of Standard Chartered PLC were a connected transaction under Chapter 14A of the Hong Kong List ing Rules. It was fully exempt as ﬁnancial ass istance under Rule 14A.87(1), as it was provided in our ordinary and usual course of business and on normal commercial terms. As at 31 December 2024, Standard Chartered Bank had in place a charge over $68 mill ion (31 December 2023: $68 m ill ion) of cash assets in favour of the independent trustee of its employer ﬁnanced retirement beneﬁt scheme. Other than as disclosed in the Annual Report and Accounts, there were no other transactions, arrangements or agreements outstanding for any director, connected person or ofﬁcer of the Company which have to be disclosed under the Act, the rules of the UK List ing Author ity or the Hong Kong List ing Rules. Details of non-revenue transactions with Temasek Holdings (Private) Lim ited are set out below. Company The Company has received $1,838 mill ion (31 December 2023: $1,469 m ill ion) of net interest income from its subsid iar ies. The Company issues debt externally and lends proceeds to Group companies. The Company has an agreement with Standard Chartered Bank that in the event of Standard Chartered Bank defaulting on its debt coupon interest payments, where the terms of such debt requires it, the Company shall issue shares as settlement for non-payment of the coupon interest. 2024 2023 Standard Standard Chartered Bank Chartered Bank Standard (Hong Kong) Standard (Hong Kong) Chartered Bank Lim ited Others 1 Chartered Bank Lim ited Others 1 $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Assets Due from subsid iar ies 11,318 135 147 10,208 60 25 Derivat ive ﬁnancial instruments 98 – – 62 12 – Debt securit ies 18,124 5,512 1,221 20,524 4,775 1,070 Total assets 29,540 5,647 1,368 30,794 4,847 1,095 Liab il it ies Derivat ive ﬁnancial instruments 1,042 23 – 1,104 – – Total liab il it ies 1,042 23 – 1,104 – – 1 Others include Standard Chartered Bank (Singapore) Lim ited, Standard Chartered Hold ings Lim ited and Standard Chartered I H L im ited 370 Standard Chartered – Annual Report 2024 Financ ial statements Notes to the ﬁnancial statements 36. Related party transactions continued Associate and jo int ventures The following transactions with related parties are on an arm’s length basis: 2024 2023 $mill ion $mill ion Assets Financ ial Assets held at FVTPL – 14 Derivat ive assets 5 12 Total assets 5 26 Liab il it ies Deposits 209 959 Derivat ive l iab il it ies 4 – Other Liab il it ies – 2 Total liab il it ies 213 961 Loan commitments and other guarantees¹ 14 113 1 The maximum loan commitments and other guarantees during the period were $14 mill ion (31 December 2023:$113 m ill ion) 37. Post balance sheet events On 16 January 2025 Standard Chartered PLC issued AT1 of $1.0 bill ion and on 21 January 2025 Standard Chartered PLC issued $1.0 bill ion 6.228 per cent F ixed Rate Reset Notes due 2036, $1.0 bill ion 5.545 per cent F ixed Rate Reset Notes due 2029 and $0.5 bill ion Float ing Rate Notes due 2029. Standard Chartered PLC redeemed $2.0 bill ion sen ior debt on 30 January 2025 and redeemed $1.0 bill ion subord inated debt on 12 February 2025. On 23 January 2025, the Indian branch of Standard Charted Bank sold its Unsecured Personal Loan business to Kotak Mahindra Bank Lim ited for a purchase cons iderat ion of INR32 b ill ion ($375 m ill ion) aga inst a book value of $389 mill ion on that date, g iv ing rise to a loss on disposal of $14 mill ion. A share buyback for up to a maximum considerat ion of $1.5 b ill ion has been declared by the d irectors after 31 December 2024. This will reduce the number of ordinary shares in issue by cancelling the repurchased shares. A ﬁnal div idend for 2024 of 28 cents per ord inary share was declared by the directors after 31 December 2024. 38. Auditor’s remuneration Auditor’s remuneration is included with in other general adm in istrat ion expenses. The amounts paid by the Group to their princ ipal aud itor, Ernst & Young LLP and its associates (together Ernst & Young LLP), are set out below. All services are approved by the Group Audit Committee and are subject to controls to ensure the external auditor’s independence is unaffected by the provis ion of other serv ices. 2024 2023 $mill ion $mill ion Audit fees for the Group statutory audit 31.3 27.8 Of which fees for the audit of Standard Chartered Bank Group 23.2 20.6 Fees payable to EY for other services provided to the SC PLC Group: Audit of Standard Chartered PLC subsid iar ies 13.5 13.4 Total audit fees 44.8 41.2 Audit-related assurance services 6.6 6.0 Other assurance services 5.4 7.0 Other non-audit services 0.4 0.8 Transaction related services 0.6 0.3 Total non-audit fees 13.0 14.1 Total fees payable 57.8 55.3 The following is a descript ion of the type of serv ices included with in the categor ies listed above: • Audit fees for the Group statutory audit are in respect of fees payable to Ernst & Young LLP for the statutory audit of the consolidated ﬁnanc ial statements of the Group and the separate ﬁnancial statements of Standard Chartered PLC • Audit-related fees consist of fees such as those for services required by law or regulation to be provided by the auditor, reviews of inter im ﬁnancial informat ion, report ing on regulatory returns, reporting to a regulator on client assets and extended work performed over ﬁnancial informat ion and controls author ised by those charged with governance • Other assurance services include agreed-upon-procedures in relation to statutory and regulatory ﬁl ings • Transaction related services are fees payable to Ernst & Young LLP for issu ing comfort letters Expenses incurred in respect of their role as auditor, were reimbursed to EY LLP $1 mill ion (2023: $0.9 m ill ion). Financ ial statements Standard Chartered – Annual Report 2024 371 39. Standard Chartered PLC (Company) Classif icat ion and measurement of ﬁnanc ial instruments 2024 2023 Non-trading Non-trading mandatorily mandatorily Derivat ives at fair value Derivat ives at fair value held for Amortised through held for Amortised through hedging cost proﬁt or loss Total hedging cost proﬁt or loss Total Financ ial assets $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Derivat ives 112 – – 112 80 – – 80 Investment securit ies – 5,808 19,049 1 24,857 – 6,944 19,425 1 26,369 Amounts owed by subsid iary undertakings – 11,601 – 11,601 – 10,294 – 10,294 Total 112 17,409 19,049 36,570 80 17,238 19,425 36,743 1 Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Lim ited, Standard Chartered Bank (Ch ina) Lim ited and Standard Chartered Bank (S ingapore) Lim ited issued Loss Absorbing Capacity (LAC) elig ible debt secur it ies Instruments classif ied as amort ised cost, which include investment securit ies and amounts owed by subs id iary undertak ings, are recorded in stage 1 for the recognit ion of expected cred it losses. Derivat ives held for hedg ing are held at fair value and are classif ied as Level 2 and Level 3 wh ile the counterparty is Standard Chartered Bank and external counterparties. Debt securit ies compr ise securit ies held at amort ised cost issued by Standard Chartered Bank and SC Ventures Holdings Lim ited and have a fair value equal to carrying value of $5,808 mill ion (31 December 2023: $6,944 m ill ion). In 2024 and 2023, amounts owed by subsid iary undertak ings have a fair value equal to carrying value. 2024 2023 Designated Designated Derivat ives at fair value Derivat ives at fair value held for Amortised through held for Amortised through hedging cost proﬁt or loss Total hedging cost proﬁt or loss Total Financ ial l iab il it ies $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Derivat ives 1,065 – – 1,065 1,104 – – 1,104 Debt securit ies in issue – 18,167 14,175 32,342 – 17,142 14,007 31,149 Subordinated liab il it ies and other borrowed funds – 7,661 2,677 10,338 – 9,248 2,697 11,945 Amounts owed to subsid iary undertakings – 35 – 35 – – – – Total 1,065 25,863 16,852 43,780 1,104 26,390 16,704 44,198 Derivat ives held for hedg ing are held at fair value and are classif ied as Level 2 wh ile the counterparty is Standard Chartered Bank and Standard Chartered Bank (Hong Kong) Lim ited. The fair value of debt securit ies in issue held at amortised cost is $18,313 mill ion (2023: $17,195 m ill ion). The fair value of subordinated liab il it ies and other borrowed funds held at amort ised cost is $7,336 mill ion (2023: $8,717 m ill ion). Derivat ive ﬁnancial instruments 2024 2023 Notional Notional princ ipal princ ipal amounts Assets Liab il it ies amounts Assets Liab il it ies Derivat ives $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Foreign exchange derivat ive contracts: Forward foreign exchange 9,077 46 30 8,968 32 – Currency swaps 545 20 – 563 – 35 Interest rate derivat ive contracts: Swaps 14,863 32 1,035 14,819 43 1,069 Forward rate agreements and options – – – – – – Credit derivat ive contracts 4,030 14 – 4,030 5 – Total 28,515 112 1,065 28,380 80 1,104 39. Standard Chartered PLC (Company) continued 372 Standard Chartered – Annual Report 2024 Financ ial statements Notes to the ﬁnancial statements Credit risk 2024 2023 $mill ion $mill ion Derivat ive ﬁnancial instruments 112 80 Debt securit ies 24,857 26,369 Amounts owed by subsid iary undertak ings 11,601 10,294 Total 36,570 36,743 In 2024 and 2023, amounts owed by subsid iary undertak ings were neither past due nor impa ired; the Company had no ind iv idually impa ired loans. In 2024 and 2023, the Company had no impa ired debt secur it ies. The debt secur it ies held by the Company are issued by Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Lim ited, Standard Chartered Bank (Ch ina) Lim ited and Standard Chartered Bank (Singapore) Lim ited, subs id iary undertak ings with credit ratings of A+. There is no material expected credit loss on these instruments as they are Stage 1 assets, and of a high quality. Liqu id ity risk The following table analyses the residual contractual maturity of the assets and liab il it ies of the Company on a d iscounted basis: 2024 Between Between Between Between Between Between More than one month three six months nine months one year two years ﬁve years One month and three months and and nine and one and two and ﬁve and or less months six months months year years years undated Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Assets Derivat ive ﬁnancial instruments 45 23 – 20 – 24 – – 112 Investment securit ies – – – – – 1,725 7,205 15,927 24,857 Amount owed by subsid iary undertakings 1,763 1,536 1,931 110 53 2,355 2,695 1,158 11,601 Investments in subsid iary undertakings – – – – – – – 61,593 61,593 Other assets – – – – – – – – – Total assets 1,808 1,559 1,931 130 53 4,104 9,900 78,678 98,163 Liab il it ies Derivat ive ﬁnancial instruments 30 – 22 – – 53 147 813 1,065 Senior debt – – 992 – – 4,979 12,887 13,484 32,342 Amount owed to subsid iary undertakings 35 – – – – – – – 35 Other liab il it ies 304 512 126 14 3 – – – 959 Subordinated liab il it ies and other borrowed funds 2 46 14 187 – 376 1,995 7,718 10,338 Total liab il it ies 371 558 1,154 201 3 5,408 15,029 22,015 44,739 Net liqu id ity gap 1,437 1,001 777 (71) 50 (1,304) (5,129) 56,663 53,424 39. Standard Chartered PLC (Company) continued Standard Chartered – Annual Report 2024 Financ ial statements 373 2023 Between Between Between Between Between Between More than one month three six months nine months one year two years ﬁve years One month and three months and and nine and one and two and ﬁve and or less months six months months year years years undated Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Assets Derivat ive ﬁnancial instruments 32 – – – – 10 27 11 80 Investment securit ies – – – – – 3,853 5,581 16,935 26,369 Amount owed by subsid iary undertakings 1,598 504 1,530 12 1,073 1,082 3,254 1,241 10,294 Investments in subsid iary undertakings – – – – – – – 60,791 60,791 Other assets – – – – – – – – – Total assets 1,630 504 1,530 12 1,073 4,945 8,862 78,978 97,534 Liab il it ies Derivat ive ﬁnancial instruments 11 26 17 – – 93 171 786 1,104 Senior debt – – – – – 7,242 14,020 9,887 31,149 Amount owed to subsid iary undertakings – – – – – – – – – Other liab il it ies 278 202 135 30 5 – – – 650 Subordinated liab il it ies and other borrowed funds 996 51 8 172 440 330 1,952 7,996 11,945 Total liab il it ies 1,285 279 160 202 445 7,665 16,143 18,669 44,848 Net liqu id ity gap 345 225 1,370 (190) 628 (2,720) (7,281) 60,309 52,686 Financ ial l iab il it ies on an und iscounted basis 2024 Between Between Between Between Between Between More than one month three six months nine months one year two years ﬁve years One month and three months and and nine and one and two and ﬁve and or less months six months months year years years undated Total $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion $mill ion Derivat ive ﬁnancial instruments 30 – 22 – – 53 147 813 1,065 Debt securit ies in issue 276 151 1,355 368 308 6,333 15,780 15,635 40,206 Subordinated liab il it ies and other borrowed funds 33 134 34 206 – 407 2,261 13,473 16,548 Other liab il it ies – 959 – – – – – – 959 Total liab il it ies 339 1,244 1,411 574 308 6,793 18,188 29,921 58,778 2023 Derivat ive ﬁnancial instruments 11 26 17 – – 93 171 786 1,104 Debt securit ies in issue 247 57 328 398 278 8,490 16,396 11,279 37,473 Subordinated liab il it ies and other borrowed funds 1,059 134 34 208 556 410 2,304 13,968 18,673 Other liab il it ies 5 91 – – – – – – 96 Total liab il it ies 1,322 308 379 606 834 8,993 18,871 26,033 57,346 Financ ial statements Notes to the ﬁnancial statements 374 Standard Chartered – Annual Report 2024 40. Related undertakings of the Group As at 31 December 2024, the Group’s interests in related undertakings are disclosed below. Unless otherwise stated, the share capital disclosed comprises ordinary or common shares which are held by subsid iar ies of the Group. Standard Chartered Bank (Hong Kong) Lim ited, Standard Chartered Funding (Jersey) Lim ited, Stanchart Nom inees Lim ited, Standard Chartered Holdings Lim ited and Standard Chartered Nominees Lim ited are d irectly held subsid iar ies, all other related undertakings are held ind irectly. Unless otherwise stated, the princ ipal country of operat ion of each subsid iary is the same as its country of incorporation Note 32 details undertakings that have a sign iﬁcant contr ibut ion to the Group’s net proﬁt or net assets. Subsid iary Undertak ings Proportion of shares held Name (%) Footnotes FinVentures UK Lim ited v 100 1 , 163, 166 SC (Secretaries) Lim ited x 100 1 SC Transport Leasing 1 LTD vi 100 1, 163, 166 SC Transport Leasing 2 Lim ited vi 100 1, 163, 166 SC Ventures G.P. Lim ited v 100 1 SC Ventures Innovation Investment L.P. v 100 Y 1 SCMB Overseas Lim ited v 100 1, 163, 166 Standard Chartered Africa Lim ited v 100 1, 163, 166 Standard Chartered Bank i 100; 100 Q,T 1 Standard Chartered Foundation x 100 AE 1 , 158 Standard Chartered Health Trustee (UK) Lim ited x 100 1 Standard Chartered I H Lim ited v 100 1, 163, 166 Standard Chartered Leasing (UK) Lim ited vi 100 1, 163, 166 Standard Chartered Nominees (Private Clients UK) Lim ited i 100 1 Standard Chartered Securit ies (Afr ica) Holdings Lim ited v 100 1, 163, 166 Standard Chartered Strategic Investments Lim ited v 100 1, 163, 166 Standard Chartered Trustees (UK) Lim ited x 100 1 SC Ventures Holdings Lim ited v 100; 100 M 1 The SC Transport Leasing Partnership 1 vi 100 Y 1, 163, 166 The SC Transport Leasing Partnership 2 vi 100 Y 1, 163, 166 The SC Transport Leasing Partnership 3 vi 100 Y 1, 163, 166 The SC Transport Leasing Partnership 4 vi 100 Y 1, 163, 166 Zodia Markets (UK) Lim ited i 100 1 Zodia Markets Holdings Lim ited v 83.96 1 Bricks (C&K) LP x 100 Y 2 , 158 Bricks (C) LP x 100 Y 2 , 158 Bricks (T) LP x 100 Y 2 , 158 Corrasi Covered Bonds LLP x 75 AA 3 Zodia Custody Lim ited iv 95.1; 15.132 K 107 Zodia Holdings Lim ited v 100 A 107 Assembly Payments UK Ltd iv 100 4 , 158 CurrencyFair (UK) Lim ited i 100 4 , 158 Zai Technologies Lim ited iv 100 4 , 158 Standard Chartered Grindlays Pty Lim ited v 100 5 Assembly Payments Australia Pty Ltd iv 100 131 , 158 Zai Australia Pty Ltd iv 100 131 CurrencyFair Australia Pty Ltd iv 100 6 , 158 Standard Chartered Bank Insurance Agency (Proprietary) Lim ited i 100 7 Standard Chartered Investment Services (Proprietary) Lim ited i 100 7 Standard Chartered Bank Botswana Lim ited i 75.827 7 Proportion of shares held Name (%) Footnotes Standard Chartered Botswana Nominees (Proprietary) Lim ited i 100 7 Standard Chartered Botswana Education Trust x 100 AB 7 Standard Chartered Representação e Partic ipações Ltd ai 100 8 Standard Chartered Securit ies (B) Sdn Bhd i 100 108 Standard Chartered Bank Cameroon S.A. i 100 9 CurrencyFair (Canada) Ltd iv 100 10 , 158 SCB Investment Holding Company Lim ited v 99.999 A 114 Standard Chartered Global Business Services Co., Ltd vi i i 100 12 , 160 Standard Chartered Global Business Services (Guangzhou) Co., Ltd. vi i i 100 121 , 160 Guangzhou CurrencyFair Information Technology Lim ited iv 100 13,166 Standard Chartered Bank Cote d’Ivoire SA i 100 14 Standard Chartered Bank Gambia Lim ited i 74.852 15 Standard Chartered Bank AG i 100 16 Solvezy Technology Ghana Ltd iv 100 17 Standard Chartered Bank Ghana PLC i 69.416; 87.043 T 18 Standard Chartered Ghana Nominees Lim ited i 100 18 Standard Chartered Wealth Management Lim ited Company i 100 19 Standard Chartered PF Real Estate (Hong Kong) Lim ited v 100 81 Standard Chartered Private Equity Lim ited v 100 20 Standard Chartered Asia Lim ited v 100; 100 AD 20 Assembly Payments HK Lim ited iv 100 21 , 158 CurrencyFair Asia Lim ited iv 100 91 , 158 Zodia Custody (Hong Kong) Lim ited iv 100 132 Assembly Payments India Private Lim ited iv 100 92 Standard Chartered Global Business Services Private Lim ited ix 100 22 Standard Chartered Finance Private Lim ited ix 98.675 23 St Helen’s Nominees India Private Lim ited i 100 24 Standard Chartered Private Equity Advisory (India) Private Lim ited ix 100 24 Standard Chartered Research and Technology India Private Lim ited iv 100 A,R 136 Standard Chartered Capital Lim ited i 100 153 Standard Chartered Securit ies (Ind ia) Lim ited i 100 93 Standard Chartered (India) Modeling and Analytics Centre Private Lim ited ix 100 26 SCV Research and Development Pvt. Ltd. iv 100 117 PT Labamu Sejahtera Indonesia iv 100 27 CurrencyFair (Canada) Lim ited iv 100 28 CurrencyFair Lim ited iv 27.951; 100 A 28 , 158, 165 CurrencyFair Nominees Lim ited iv 100 28 , 158 Zodia Markets (Ireland) Lim ited i 100 133 Zodia Custody (Ireland) Lim ited iv 100 134 Standard Chartered Assurance Lim ited i 100; 100 M 29 Standard Chartered Isle of Man Lim ited i 100 29 Standard Chartered Securit ies (Japan) Lim ited i 100 30 SCB Nominees (CI) Lim ited i 100 31 Solvezy Technology Kenya Lim ited iv 100 32 Standard Chartered Bancassurance Intermediary Lim ited i 100 32 40. Related undertakings of the Group continued Subsid iary Undertak ings continued Financ ial statements Standard Chartered – Annual Report 2024 375 Proportion of shares held Name (%) Footnotes Standard Chartered Investment Services Lim ited v 100 32 Standard Chartered Bank Kenya Lim ited i 74.318; 100 J 32 Standard Chartered Securit ies (Kenya) Lim ited i 100 32 Standard Chartered Financ ial Serv ices Lim ited i 100 32 Standard Chartered Kenya Nominees Lim ited i 100 32 Tawi Fresh Kenya Lim ited iv 100 32 Standard Chartered Metropolitan Holdings SAL v 99.9 A 33 Cartaban (Malaya) Nominees Sdn Berhad i 100 34 Cartaban Nominees (Asing) Sdn Bhd i 100 34 Cartaban Nominees (Tempatan) Sdn Bhd i 100 34 Golden Maestro Sdn Bhd v 100 34 Price Solutions Sdn Bhd i 100 34 SCBMB Trustee Berhad x 100 34 Standard Chartered Bank Malaysia Berhad i 100; 100 S 34 Standard Chartered Saadiq Berhad i 100 34 Resolution Alliance Sdn Bhd v 91 35 Standard Chartered Global Business Services Sdn Bhd ix 100 115 Assembly Payments Malaysia Sdn. Bhd. iv 100 37 , 158 Standard Chartered Bank (Maurit ius) Lim ited i 100 38 Standard Chartered Private Equity (Maurit ius) L im ited i 100 113 Standard Chartered Private Equity (Maurit ius) II L im ited i 100 113 Standard Chartered Private Equity (Maurit ius) lll L im ited i 100 113 Subcontinental Equit ies L im ited v 100 39 Actis Treit Holdings (Maurit ius) L im ited v 62.001 A ; 62.001 B 149 , 158 Standard Chartered Bank Nepal Lim ited i 70.21 40 Standard Chartered Holdings (Africa) B.V. v 100 1 , 161 Standard Chartered Holdings (Asia Pacif ic) B.V. v 100 1 , 161 Standard Chartered Holdings (International) B.V. v 100 1 , 161 Standard Chartered MB Holdings B.V. v 100 1 , 161 PromisePay Lim ited iv 100 41 , 158 Standard Chartered Bank Niger ia L im ited i 100; 100 N,T 42 Standard Chartered Capital & Advisory Niger ia L im ited i 100 42 Standard Chartered Nominees (Niger ia) Lim ited i 100 42 Standard Chartered Bank (Pakistan) Lim ited i 98.986 43 Standard Chartered Group Services, Manila Incorporated ix 100 44 Standard Chartered Global Business Services spółka z ograniczoną odpowiedz ialnośc ią ix 100 45 Standard Chartered Capital (Saudi Arabia) i 100 116 Actis Treit Holdings No.1 (Singapore) Private Lim ited v 100 156 Actis Treit Holdings No.2 (Singapore) Private Lim ited v 100 156 Proportion of shares held Name (%) Footnotes Standard Chartered Private Equity (Singapore) Pte. Ltd v 100 46 Standard Chartered Real Estate Investment Holdings (Singapore) Private Lim ited v 100 46 Rafﬂes Nominees (Pte.) Lim ited i 100 47 SCTS Capital Pte. Ltd i 100 48 SCTS Management Pte. Ltd. i 100 48 Standard Chartered Bank (Singapore) 100 A, B, C, U, V, Lim ited i W 48 Standard Chartered Trust (Singapore) Lim ited x 100 48 Standard Chartered Holdings (Singapore) Private Lim ited v 100 48 Standard Chartered Nominees (Singapore) Pte Ltd i 100 48 Audax Financ ial Technology Pte. Ltd iv 100 A 90 CashEnable Pte. Ltd. iv 100 A 90 Letsbloom Pte. Ltd. iv 100 A 90 Libeara (Singapore) Pte. Ltd. iv 100 90 Libeara Pte. Ltd. v 100 90 SCV Research and Development Pte. Ltd. iv 100 A 90 Zodia Custody (Singapore) Pte. Ltd. iv 100 46 Pegasus Dealmaking Pte. Ltd. iv 100 46 Power2SME Pte. Ltd. v 90.6 90 SCV Master Holding Company Pte. Ltd. v 100 46 Solv-India Pte. Ltd. v 100 90 Trust Bank Singapore Lim ited i 60 49 , 158 130 CurrencyFair (Singapore) Pte.Ltd iv 100 Assembly Payments SGP Pte. Ltd. iv 100 50 , 158 Assembly Payments Pte. Ltd. iv 100; 100 J 50 , 158 Standard Chartered Nominees South Africa Proprietary Lim ited (RF) i 100 52 Promisepay (PTY) Ltd iv 100 137 , 158 Standard Chartered Bank Tanzania Lim ited i 100; 100 J 53 Standard Chartered Tanzania Nominees Lim ited i 100 53 Standard Chartered Bank (Thai) Public Company Lim ited i 99.871 54 Standard Chartered Yatir im Bankas i Turk Anonim Sirket i 100 55 Standard Chartered Bank Uganda Lim ited i 100 56 Furaha Finserve Uganda Lim ited i 100 57 Appro Onboarding Solutions FZ-LLC iv 100 58 Financ ial Inclus ion Technologies Ltd v 100 A 94 Furaha Holding Ltd v 100; 100 B 59 myZoi Financ ial Inclus ion Technologies LLC iv 100 61 Standard Chartered Bank International (Americas) Lim ited i 100 111 Standard Chartered Holdings Inc. v 100 62 Standard Chartered Securit ies (North America) LLC i 100 AA 62 CurrencyFair (USA) Inciv 100 AC 64 , 158 Standard Chartered Trade Services Corporation i 100 89 Standard Chartered Bank (Vietnam) Lim ited i 100 X 65 Sky Harmony Holdings Lim ited v 100 118 Standard Chartered Bank Zambia Plc i 90 119 Standard Chartered Zambia Securit ies Services Nominees Lim ited i 100 138 Stanchart Nominees Lim ited i 100 1 , 164 40. Related undertakings of the Group continued Subsid iary Undertak ings continued Financ ial statements Notes to the ﬁnancial statements 376 Standard Chartered – Annual Report 2024 Proportion of shares held Name (%) Footnotes Standard Chartered Holdings Lim ited v 100 1 , 163, 164, 166 Standard Chartered NEA Lim ited v 100 1 , 163, 166 Standard Chartered Nominees Lim ited i 100 1 , 164 Standard Chartered (Guangzhou) Business Management Co., Ltd. i i 100 120, 166 Standard Chartered Bank (China) Lim ited i 100 75 , 160, 166 Standard Chartered Securit ies (Ch ina) Lim ited i 100 76, 166 Horsford Nominees Lim ited i 100 77 Marina Acacia Shipp ing L im ited vi 100 78 Marina Amethyst Shipp ing L im ited vi 100 78 Marina Angelite Shipp ing L im ited vi 100 78 Marina Beryl Shipp ing L im ited vi 100 78 Marina Emerald Shipp ing L im ited vi 100 78 Marina Flax Shipp ing L im ited vi 100 78 Marina Gloxin ia Sh ipp ing L im ited vi 100 78 Marina Hazel Shipp ing L im ited vi 100 78 Marina Ilex Shipp ing L im ited vi 100 78 Marina Iridot Shipp ing L im ited vi 100 78 Marina Mimosa Shipp ing L im ited vi 100 78 Marina Moonstone Shipp ing L im ited vi 100 78 Marina Peridot Shipp ing L im ited vi 100 78 Marina Sapphire Shipp ing L im ited vi 100 78 Marina Tourmaline Shipp ing L im ited vi 100 78 Standard Chartered Securit ies (Hong Kong) Lim ited i 100 78 Marina Leasing Lim ited vi 100 78 Standard Chartered Leasing Group Lim ited v 100 78 Standard Chartered Trade Support (HK) Lim ited i 100 78 Mox Bank Lim ited i 71.579 79 Standard Chartered Bank (Hong Kong) Lim ited i 100 A,B,C,D 80 Standard Chartered Trust (Hong Kong) Lim ited i 100 82 Standard Chartered Trustee (Hong Kong) Lim ited x 100 82 Standard Chartered Funding (Jersey) Lim ited v 100 83 Standard Chartered Bank Korea Lim ited i 100 84 Standard Chartered Securit ies Korea Co., Ltd i 100 85 Marina Morganite Shipp ing L im ited vi 100 125 , 162 Marina Moss Shipp ing L im ited vi 100 125 , 162 Marina Tanzanite Shipp ing L im ited vi 100 125 , 162 Marina Angelica Shipp ing L im ited vi 100 86 , 162 Marina Aventurine Shipp ing L im ited vi 100 86 , 162 Marina Citr ine Sh ipp ing L im ited vi 100 86 , 162 Marina Dahlia Shipp ing L im ited vi 100 86 , 162 Marina Dittany Shipp ing L im ited vi 100 86 , 162 Marina Lilac Shipp ing L im ited vi 100 86 , 162 Marina Lolite Shipp ing L im ited vi 100 86 , 162 Marina Obsid ian Sh ipp ing L im ited vi 100 86 , 162 Marina Quartz Shipp ing L im ited vi 100 86 , 162 Marina Remora Shipp ing L im ited vi 100 86 , 162 Marina Turquoise Shipp ing L im ited vi 100 86 , 162 Marina Zircon Shipp ing L im ited vi 100 86 , 162 Price Solution Pakistan (Private) Lim ited i 100 87 Marina Partawati Shipp ing Pte. Ltd. vi 100 152 Proportion of shares held Name (%) Footnotes Standard Chartered Bank (Taiwan) Lim ited i 100 88 CMB Nominees (RF) Proprietary Lim ited x 100 52 Letsbloom India Private Lim ited iv 100 97 PointSource Technologies Pte. Ltd. x 100 90 Qatalyst Pte. Ltd. iv 72.727 90 SC Ventures Management Consulting (Shenzhen) Lim ited x 100 74, 154, 166 Solv Vietnam Company Lim ited iv 100 X 98 Standard Chartered Funds VCC x 100 48 TASConnect (Hong Kong) Private Lim ited iv 100 99 TASConnect (Malaysia) Sdn. Bhd. iv 100 36 TASConnect (Shanghai) Financ ial Technology Pte. Ltd iv 100 151 NewCo Holding EUR 19 S.A. x 100 128 Zodia Custody Australia Pty. Ltd. iv 100 126 Zodia Markets (AME) Lim ited iv 100 127 Zodia Markets (Jersey) Lim ited iv 100 129 Standard Chartered Luxembourg S.A. i 100 106 Solv Holding Ltd v 100 155 Joint ventures Proportion of shares held Name (%) Footnotes Olea Global Pte. Ltd. iv 47; 100 J 46 Global Dig ital Asset Hold ings Lim ited v 100 60 Associates Proportion of shares held Name (%) Footnotes Clifford Capital Holdings Pte. Ltd. v 9.9 109 Verif ied Impact Exchange Hold ings Pte. Ltd i 13.421 110 Seychelles International Mercantile Banking Corporation Lim ited. i 22 66 SWIAT GmbH iv 30 67 SBI Zodia Custody Co. Ltd iv 100 68 Partior Holdings Pte. Ltd. i 25; 25 H ; 11.111 I 69 China Bohai Bank Co., Ltd. i 16.263 95, 166 Vault22 Solutions Holdings Ltd iv 100 E 135 Sign iﬁcant investment holdings and other related undertakings Proportion of shares held Name (%) Footnotes Corrasi Covered Bonds (LM) Lim ited i 20 3 ATSC Cayman Holdco Lim ited v 5.272 A ; 100 B 140 Actis Temple Stay Holdings (HK) Lim ited v 39.689 A ; 39.689 B 141 Mikado Realtors Private Lim ited x 26 142 Industrial Minerals and Chemical Co. Pvt. Ltd x 26 157 Ascenta III v 31 G 70 SCIAIGF Liqu idat ing Trust v 43.96 AB 112 Paxata, Inc. i i i 40.74 O ; 8.908 P 64 40. Related undertakings of the Group continued Subsid iary/Assoc iate Undertakings – In liqu idat ion Financ ial statements Standard Chartered – Annual Report 2024 377 Proportion of shares held Name (%) Footnotes Standard Chartered Masterbrand Licens ing Lim ited x 100 122 Standard Chartered Leasing (UK) 3 Lim ited vi 100 122 Birdsong Lim ited x 100 71 Nominees One Lim ited x 100 71 Nominees Two Lim ited x 100 71 Songbird Lim ited x 100 71 Standard Chartered Secretaries (Guernsey) Lim ited x 100 71 Standard Chartered Trust (Guernsey) Lim ited x 100 71 Standard Chartered Financ ial Serv ices (Luxembourg) S.A. x 100 72 Standard Chartered IL&FS Management (Singapore) Pte. Lim ited x 50 51 Banco Standard Chartered en Liqu idac ion x 100 123 Standard Chartered Uruguay Representacion S.A. x 100 73 Marina Opah Shipp ing Pte. Ltd. vi 100 152 Marina Cobia Shipp ing Pte. Ltd vi 100 152 Marina Aquata Shipp ing Pte. Ltd. vi 100 152 Marina Aruana Shipp ing Pte. Ltd. vi 100 152 Fintech for International development Ltd x 58.901 A 96 Ascenta IV x 39.1 Z 70 Cerulean Investments LP x 100 Y 11 Subsid iary/Assoc iate undertakings and Sign iﬁcant investment holdings – Liqu idated/d issolved/sold Proportion of shares held Name (%) Footnotes Assembly Payments, Inc i 100 143 Assembly Escrow Inc i 100 144 , 158 Shoal Lim ited iv 100 1 Standard Chartered Bank Zimbabwe Lim ited i 100 145 Africa Enterprise Network Trust x 100 AB 145 , 159 Standard Chartered Nominees Zimbabwe (Private) Lim ited x 100 145 Standard Chartered Trading (Shanghai) Lim ited x 100 148 , 160 Standard Chartered Bank Angola S.A. i 60 146 Standard Chartered Bank Sierra Leone Lim ited i 80.656 147 Marina Fatmarin i Sh ipp ing Pte. Ltd. vi 100 152 Marina Frabandari Shipp ing Pte. Ltd. vi 100 152 Marina Gerbera Shipp ing Pte. Ltd. vi 100 152 The BW Leasing Partnership 1 LP vi 100 Y 107 The BW Leasing Partnership 2 LP vi 100 Y 107 The BW Leasing Partnership 3 LP vi 100 Y 107 The BW Leasing Partnership 4 LP vi 100 Y 107 The BW Leasing Partnership 5 LP vi 100 Y 107 Standard Chartered Overseas Investment, Inc. v 100 63 Actis Rivendell Holdings (HK) Lim ited v 39.671 A,B 141 Autumn Life Pte. Ltd. iv 100 A 46 Footnotes Registered address Address in country of incorporation 1 1 Basinghall Avenue, London, EC2V 5DD, United Kingdom 2 2 More London Rivers ide, London, SE1 2JT, Un ited Kingdom 3 1 Bartholomew Lane, London, EC2N 2AX, United Kingdom 4 1 Poultry, London, EC2R 8EJ, United Kingdom 5 Level 5, 345 George St, Sydney NSW 2000, Australia 6 Milsons Landing, Level 5, 6A Glen Street, Milsons Point NSW 2061, Australia 7 5th Floor Standard House Bldg, The Mall, Queens Road, PO Box 496, Gaborone, Botswana 8 Avenida Brigade iro Far ia Lima, no 3.477, 6º andar, conjunto 62 – Torre Norte, Condomin io Pat io Victor Malzoni, CEP 04538-133, Sao Paulo, Brazil 9 1155, Boulevard de la Liberté, Douala, B.P. 1784, Cameroon 10 66 Wellington Street, West, Suite 4100, Toronto Domin ion Centre, Toronto ON M5K 1B7, Canada 11 Maples Corporate Services Lim ited, PO Box 309, Ugland House, Grand Cayman, KY1-1104 , Cayman Islands 12 No. 35, Xinhuanbe i Road, TEDA, T ianjin, 300457, China 13 Room 2619, No 9, Linhe West Road, Tianhe Distr ict, Guangzhou, China 14 23 Boulevard de la République, Abidjan 17, 17 B.P. 1141, Cote d’Ivoire 15 8 Ecowas Avenue, Banjul, Gambia 16 Taunusanlage 16, 60325, Frankfurt am Main, Germany 17 Standard Chartered Bank Build ing, 87 Independance Avenue, Ridge, ACCRA, Greater ACCRA, GA-016-4621, Ghana 18 Standard Chartered Bank Build ing, No. 87, Independence Avenue, P.O. Box 768, Accra, Ghana 19 87, Independence Avenue, Post Ofﬁce Box 678, Accra, Ghana 20 13/F Standard Chartered Bank Build ing, 4-4A Des Voeux Road Central, Hong Kong 21 31/F, Tower 2 Times Square, 1 Matheson St, Causeway Bay, Hong Kong 22 1st Floor, Europe Build ing, No.1, Haddows Road, Nungambakkam, Chennai, 600 006, India 23 90 M.G.Road, II Floor, Fort, Mumbai, Maharashtra, 400001, India 24 Ground Floor, Crescenzo Build ing, G Block, C 38/39 , Bandra Kurla Complex, Bandra (East) , Mumbai , Maharashtra , 400051, India 25 Crescenzo, 6th Floor, Plot No 38-39 G Block , Bandra Kurla Complex, Bandra East , Mumbai , Maharashtra , 400051, India 26 Vaishnav i Seren ity, First Floor, No. 112, Koramangala Industrial Area, 5th Block, Koramangala, Bangalore, Karnataka, 560095, India 27 The Icon Business Park Blok P Nomor 03, RT 03/RW 09Sampora, Kec, Cisauk, Kabupaten Tangerang, Banten, 15345, Indonesia 28 91 Pembroke Road, Dublin 4, Ballsbridge, Dublin, DO4 EC42, Ireland 29 1st Floor, Goldie House, 1-4 Goldie Terrace, Upper Church Street, Douglas, IM1 1EB, Isle of Man 30 21/F, Sanno Park Tower, 2-11-1 Nagatacho, Chiyoda-ku, Tokyo, 100-6155, Japan 31 15 Castle Street, St Helier, JE4 8PT, Jersey 32 Standard Chartered@Chiromo, 48 Westlands Road, P. O. Box 30003 – 00100, Nairob i , Kenya 33 Atrium Build ing, Maarad Street, 3rd Floor, P.O. Box 11-4081 Raid El Solh, Beirut Central Distr ict, Lebanon 34 Level 25, Equatorial Plaza, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia 35 Suite 18-1, Level 18, Vertical Corporate Tower B, Avenue 10, The Vertical, Bangsar South City , No. 8, Jalan Kerinch i , 59200 Kuala Lumpur, Wilayah Persekutuan, Malaysia 40. Related undertakings of the Group Footnotes continued Financ ial statements Notes to the ﬁnancial statements continued Address in country of incorporation 36 12th Floor, Menara Symphony , No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya , Selangor, Malaysia 37 Level 13, Menara 1 Sentrum 201, Jalan Tun Sambanthan, Brickf ields, 50470 Kuala Lumpur, Malays ia 38 6th Floor, Standard Chartered Tower , 19, Bank Street, Cybercity, Ebene, 72201, Maurit ius 39 Mondial Management Services Ltd, Unit 2L, 2nd Floor Standard Chartered Tower, 19 Cybercity, Ebene, Maurit ius 40 Madan Bhandari Marg. Ward No.31, Kathmandu Metropolitan City, Kathmandu Distr ict, Bagmat i Province, Kathmandu, 44600, Nepal 41 PromisePay, 4 All good Place, Rototuna North, Hamilton, 3210, New Zealand 42 142, Ahmadu Bello Way, Victor ia Island, Lagos, 101241, Niger ia 43 P.O. Box No. 5556, I.I. Chundrigar Road , Karachi , 74000, Pakistan 44 8th Floor, Makati Sky Plaza Build ing 6788, Ayala Avenue San Lorenzo, City of Makati, Fourth Distr ict, Nat ional Capi, 1223, Phil ipp ines 45 Rondo Ignacego Daszyńskiego 2B, 00-843, Warsaw, Poland 46 9 Rafﬂes Place, #26-01 Republic Plaza, 048619, Singapore 47 7 Changi Business Park Crescent, #03-00 Standard Chartered @ Changi, 486028, Singapore 48 8 Marina Boulevard, #27-01 Marina Bay Financ ial Centre Tower 1, 018981, Singapore 49 1 Robinson Road, #17-00, AIA Tower, 048542, Singapore 50 38 Beach Road, #29-11 South Beach Tower, 189767, Singapore 51 Abogado Pte Ltd, No. 8 Marina Boulevard, #05-02 MBFC Tower 1, 018981, Singapore 52 2nd Floor, 115 West Street, Sandton, Johannesburg, 2196, South Africa 53 1 Floor, International House, Shaaban Robert Street/Garden Avenue, PO Box 9011, Dar Es Salaam, Tanzania, United Republic of 54 No. 140, 11th, 12th and 14th Floor, Wireless Road, Lumpin i, Patumwan, Bangkok, 10330, Thailand 55 Buyukdere Cad. Yapi Kredi Plaza C Blok, Kat 15, Levent, Istanbul, 34330, Turkey 56 Standard Chartered Bank Bldg, 5 Speke Road, PO Box 7111, Kampala, Uganda 57 14 Mackinnon Road, Nakasero, Kampala, 141769, Uganda 58 EX-26, Ground Floor, Bldg 16-Co Work, Dubai Internet City, Dubai, United Arab Emirates 59 Unit GV-00-10-07-OF-02, Level 7, Gate Village Build ing 10, Dubai International Financ ial Centre, Duba i, United Arab Emirates 60 7th Floor, Build ing One, Gate Prec inct, DIFC, PO Box 999, Dubai, United Arab Emirates 61 Part of Level 15, Standard Chartered Bank Build ing, Plot 8, Burj Downtown, Dubai, United Arab Emirates 62 Corporation Trust Center, 1209 Orange Street, Wilm ington DE 19801, United States 63 50 Fremont Street, San Francisco CA 94105, United States 64 251 Little Falls Drive, Wilm ington DE 19808, Un ited States 65 Level 3, #CP1.L01 and #CP2.L01, Capital Place, 29 Lieu Gia i Street, Ngoc Khanh Ward, Ba Dinh Distr ict, Ha No i, 10000, Vietnam 66 Victor ia House, State House Avenue, V ictor ia, MAHE, Seychelles 67 Gervinusstrasse 17, 60322, Frankfurt am Main, Hesse, Germany 68 Izumi Garden Tower 19F, 1-6-1 Roppongi, Minato-ku, Tokyo, Japan 378 Standard Chartered – Annual Report 2024 Address in country of incorporation 69 60B, Orchard Road, #06-18, Tower 2, The Atrium @ Orchard, 238891, Singapore 70 17F, 47, Jong-ro, Jongno-gu, (17F, 100, Gongpyeong-dong, Jongno-gu), Seoul, Korea, Republic of 71 Bucktrout House, Glategny Esplanade, St Peter Port, GY1 3HQ, Guernsey 72 30 Rue Schrobilgen, 2526, Luxembourg 73 Luis Alberto de Herrera 1248, Torre II, Piso 11, Esc. 1111, Uruguay 74 8A, Hony Tower, 1st Financ ial Street, Nanshan D istr ict, Shenzen, China 75 Standard Chartered Tower, 201 Century Avenue, Pudong, Shanghai, 200120, China 76 1201 1-2, 15-16, 12/F, Unit No.1, Build ing No.1, No. 1 Dongsanhuan Zhong Road, Chaoyang Distr ict, Be ijing, China 77 18/F., Standard Chartered Tower, 388 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong 78 15/F., Two International Finance Centre, No. 8 Finance Street, Central, Hong Kong 79 39/F., Oxford House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong 80 32/F., 4-4A Des Voeux Road, Central , Hong Kong 81 14th Floor, One Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong 82 14/F, Standard Chartered Bank Build ing, 4-4A Des Voeux Road , Central, Hong Kong 83 IFC 5, St Helier, JE1 1ST, Jersey 84 47, Jong-ro, Jongno-gu, Seoul, 110-702, Korea, Republic of 85 2F, 47, Jong-ro, Jongno-gu, Seoul, Korea, Republic of 86 Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands 87 3rd Floor Main SCB Build ing, I.I Chundr igar Road, Karachi, Sindh, 74000, Pakistan 88 1F, No.177 & 3F-6F, 17F-19F, No.179, Liaon ing Street, Zhongshan Dist., Taipe i, 104, Ta iwan 89 C/O Corporation Service Company, 251 Little Falls Drive, Wilm ington DE 19808, Un ited States 90 16 Rafﬂes Quay, #16-02, Hong Leong Build ing, S ingapore, 048581, Singapore 91 Suite 12100, 12/F., YF Life Tower, 33 Lockhart Road, Wan Chai, Hong Kong 92 1st Floor, UB Plaza, No. 1 & 2, Vittal Mallya Road, Bengalur, India 93 2nd Floor, 23-25 M.G. Road, Fort, Mumbai 400 001, India 94 16th Floor, WeWork Hub 71, Al Khatem Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates 95 218 Haihe East Road, Hedong Distr ict, T ianjin, 300012, China 96 Parker Andrews Ltd, 5th Floor. The Union Build ing, 51-59 Rose Lane, Norwich, NR1 1BY 97 Unit 1 – 127A, WeWork Futura, Magarpatta Road, Kirtane Baug, Hadpsar I.E., Pune – 411013, Maharashtra, India 98 L17-11, Floor 17, Vincom Center, 72 Le Thanh Ton, Ben Nghe Ward, Distr ict 1, Ho Ch i Minh City, Vietnam 99 30th ﬂoor, One Taikoo Place, 979 King’s Road, Hong Kong, Hong Kong 100 Ground Floor, Two Dockland Central, Guild Street, North Dock, Dublin, D01 K2C5, Ireland 101 2701, 27th Floor, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong 102 12E, rue Guillaume Kroll, L-1882 Helios, Luxembourg 103 1 Rafﬂes Place, #36-01, One Rafﬂes Place, 048616, Singapore 104 Duo, Level 6, 280 Bishopsgate, London, EC2M 4RB, United Kingdom 105 138 Arab Street , 199826, Singapore 106 53 Boulevard Royal, Grand Duchy of Luxembourg, 2449, Luxembourg 107 5th Floor, Holland House, 1-4 Bury Street, London, EC3A 5AW, United Kingdom 40. Related undertakings of the Group continued Footnotes continued Financ ial statements Standard Chartered – Annual Report 2024 379 Address in country of incorporation 108 G01-02, Wisma Haj i Mohd Taha Bu ild ing, , Jalan Gadong, BE4119, Brunei Darussalam 109 1 Rafﬂes Quay , #23-01 , One Rafﬂes Quay, 048583 , Singapore 110 10 Marina Boulevard #08-08, Marina Bay Financ ial Centre, 018983, Singapore 111 1095 Avenue of Americas, New York City NY 10036, United States 112 3 Jalan Pisang, c/o Watiga Trust Ltd, 199070, Singapore 113 c/o Ocorian Corporate Services (Maurit ius) Ltd, 6th Floor, Tower A,1, Exchange Square, Wall Street, Ebene, Maurit ius – 72201, Maurit ius 114 c/o Maples Finance Lim ited, PO Box 1093 GT, Queensgate House, Georgetown, Grand Cayman, Cayman Islands 115 Level 1, Wisma Standard Chartered, Jalan Teknologi 8, , Taman Teknologi Malaysia, Bukit Jalil, , 57000 Kuala Lumpur, Wilayah Persekutuan, Malaysia 116 Al Faisal iah Ofﬁce Tower Floor No 7 (T07D) , K ing Fahad Highway, Olaya Distr ict, P.O box 295522 , R iyadh, 11351 , Saudi Arabia 117 B001, Metrotech Forest View, Sy No 67/5 BSK, 6th Stage, Thalaghattapura Bengaluru , Karnataka, India, 560062 118 The Company’s Registered Ofﬁce, Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, Virg in Islands, Brit ish 119 Standard Chartered House, Stand No. 4642, Corner of Mwaimwene Road and Addis Ababa Drive, Lusaka, Lusaka, 10101, Zambia 120 Units 1101B (Ofﬁce use only), No. 235 Tianhebe i Rd., T ianhe Distr ict, Guangzhou C ity, Guangdong Province, China 121 Unit 802B, 803, 1001A,1002B,1003-1005,1101-1105, 201- 1205,1302C,1303, No. 235 Tianhe North Road, Tianhe Distr ict, Guangzhou City, Guangdong Province, China 122 C/O Teneo Financ ial Adv isory Lim ited, The Colmore Build ing, 20 Colmore C ircus, Queensway, Birm ingham, B4 6AT, United Kingdom 123 Jiron Huascar 2055, Jesus Maria, Lima, 15072, Peru 124 77 Robinson Road, #13-00, Robinson 77, 068896, Singapore 125 TMF Trust Labuan Lim ited, Brumby Centre, Lot 42, Jalan Muhibbah, 87000 Labuan F.T., Malaysia 126 c/o King & Wood Mallesons, Level 61, Governor Phill ip Tower, 1 Farrer Place, Sydney NSW 2000, Australia 127 2402C, 24th Floor, Tamouh Tower, Tamouh, Abu Dhabi, Al Reem Island, United Arab Emirates 128 8-10 Avenue de la Gare, 1610, Luxembourg 129 No 1 Grenville Street, St Helier, JE2 4UF, Jersey 130 77 Robinson Road, #25-00 Robinson 77, 068896, Singapore 131 Level 22, 120 Spencer Street, Melbourne VIC 3000 VIC 3000, Australia 132 5/F, Manulife Place, 348 Kwun Tong Road, Kowloon, Hong Kong 133 32 Molesworth Street, Dublin 2, D02Y512, Ireland 134 27 Fitzw ill iam Street, Dublin, D02 TP23, Ireland 135 Dubai International Financ ial Centre, Level 14 , The Gate , PO Box 74777, Dubai, United Arab Emirates 136 No. 2734, Sector-I, HSR Layout, HSR Layout, Bangalore , Bangalore South, Karnataka, 560102, India 137 1st Floor Build ing 33, Waterford Ofﬁce Park, Waterford Drive, Fourways, Gauteng, 2191, South Africa 138 Stand No. 4642 , Corner of Mwaimwena Road and Addis Ababa Drive, Lusaka, 10101, Zambia 139 3 Jalan Pisang, c/o Watiga Trust Ltd, 199070, Singapore 140 Intertrust Corporate Services (Cayman) Lim ited, 190 Elg in Avenue,George Town, Grand Cayman , KY1-9005, Cayman Islands 141 Unit 605-07, 6/F Wing OnCentre, 111 Connaught Road, Central,Sheung Wan, Hong Kong Address in country of incorporation 142 1221 A, Devika Tower, 12th Floor, 6 Nehru Place, New Delhi 110019 143 555 Washington Av, St Louis, MO, United States of America, 63101 144 25 Taylor St, San Francisco CA 94102-3916, United States 145 Africa Unity Square Build ing, 68 Nelson Mandela Avenue, Harare, Zimbabwe 146 Edifíc io K ilamba, 8º Andar Avenida 4 de Fevereiro, Marginal, Luanda, Angola 147 9 & 11, Lightfoot Boston Street, Freetown, Sierra Leone 148 No. 188 Yeshen Rd, 11F, A-1161 RM,Pudong New Distr ict, Shanghai, 31, 201308, China 149 IQEQ Corporate Services (Maurit ius) Ltd, 33, Ed ith Cavell Street, Port Louis, 11324, Maurit ius 150 9 Rafﬂes Place, #27-00 Republic Plaza, 048619, Singapore 151 Level C, No. 888 2nd Huanhu West Road, Nanhui New Town, Pudong New Area, Shanghai 152 8 Marina Boulevard, Level 26, Marina Bay Financ ial Centre, Tower 1, 018981, Singapore 153 12th Floor, Parinee Crescenzo Build ing, Plot C-38 & 39, G Block Bandra (E) Opp. MCA Ground, Mumbai, 400051, India 154 Unit 8C-17B, Xinl ikang Bu ild ing, 3044 X ingha i Blvd, Nanshan Distr ict, Shenzhen, Ch ina 155 Dedicated desk # 14-123-039, 15th Floor, Al Khatem Tower, ADGM Square, Abu Dhabi, United Arab Emirates 156 6 Battery Road #13-01, 049909, Singapore 157 4thFloor, 274, Chital ia House, Dr. Cawasji Hormusji Road, Dhobi Talao, Mumbai City, Maharashtra, India 400 002, Mumbai, 400 002, India Other notes 158 The Group has determined that these undertakings are excluded from being consolidated into the Groups accounts, and do not meet the deﬁnit ion of a Subsid iary under IFRS. See note 32 for the consolidat ion pol icy and disclosure of the undertaking. 159 No share capital by virtue of being a trust 160 Lim ited l iab il ity company 161 The Group has determined the prin icpal place of operat ion to be United Kingdom 162 The Group has determined the prin icpal place of operat ion to be Hong Kong 163 Company is exempt from the requirement of an audit of its ind iv idual accounts by virtue of Section 479A of the Companies Act 2006. Company names and associated numbers of the qualify ing subs id iar ies taking an audit exemption for the year ended 31 December 2024 are: Finventures UK Lim ited 04275894, Standard Chartered I H Lim ited 08414408, Standard Chartered Strateg ic Investments Lim ited 01388304, Standard Chartered Holdings Lim ited 02426156, Standard Chartered NEA Lim ited 05345091, SCMB Overseas L im ited 01764223, Standard Chartered Africa Lim ited 00002877, Standard Chartered Securit ies (Afr ica) Holdings Lim ited 05843604, Standard Chartered Leasing (UK) Lim ited 05513184, SC Transport Leasing 2 Lim ited 06787090 and SC Transport Leasing 1 LTD 06787116, The SC Transport Leasing Partnership 1 LP13441, The SC Transport Leasing Partnership 2 LP13440, The SC Transport Leasing Partnership 3 LP13442, The SC Transport Leasing Partnership 4 LP13443. In line with section 479C of the Companies Act 2006, the Parent undertaking (Standard Chartered PLC Company) guarantees all outstanding liab il it ies to wh ich the subsid iary company is subject at the end of the ﬁnanc ial year includ ing external l iab il it ies of F inventures UK Lim ited ($2.3mill ion), Standard Chartered NEA L im ited ($15.6m ill ion) and SCMB Overseas Lim ited ($5.9m ill ion) 164 Directly held related undertaking 165 Group’s ultimate ownership for CurrencyFair entit ies is 43.422% 166 Registered as a Lim ited company under the Law of China 40. Related undertakings of the Group continued Financ ial statements Notes to the ﬁnancial statements 380 Standard Chartered – Annual Report 2024 Descript ion of shares A Class A Ordinary shares B Class B Ordinary shares C Class C Ordinary shares D Class D Ordinary shares E Class A2 shares F Class B Shares G Class B Equity interest H Series A Preferred I Series B Preferred J Preference shares K Series A preference shares L Series B preference shares M Redeemable preference shares N Series B Redeemable preference shares O Series C2 preference shares P Series C3 preference shares Q Redeemable non-cumulative preference shares R Compulsory convertible cumulative preference shares S Irredeemable convertible preference shares T Irredeemable non-cumulative preference shares U Class B Non-cumulative preference shares V Class C Non-cumulative preference shares W Class D Non-cumulative preference shares X Charter capital Y Lim ited Partnersh ip Z Partnership Interest AA Membership interest AB Trust AC Uncertif icated AD Deferred shares AE Guarantee Business activ ity i Banking & Financ ial Serv ices i i Commercial real estate i i i Data Analytics iv Dig ital Venture v Investment holding company vi Leasing and Finance vi i To manage intellectual property for Group vi i i Research & development ix Support Services x Others Save for those disclosed in this Annual Report, there were no other sign iﬁcant investments held, nor were there material acquis it ions or disposals of subsid iar ies during the year under review. Apart from those disclosed in this Annual Report, there were no material investments or addit ions of cap ital assets authorised by the Board at the date of this Annual Report. 381 Standard Chartered – Annual Report 2024 Supplementary informat ion 382 Supplementary ﬁnancial informat ion 388 Supplementary people informat ion 393 Supplementary sustainab il ity informat ion New dig ital solutions giv ing clients conﬁdence to trade Available through our Straight2Bank platform, clients can now request pric ing quotat ions for their letters of credit (LCs), receive conﬁrmat ion and carry out discount ing negot iat ions, and get a dig ital response on demand, from anywhere and at any time. Launched in October 2024, the platform has dig it ised the end-to-end process and allows clients to easily access pric ing for the ir LCs. Learn more sc.com/straight2bank Supplementary informat ion 382 Standard Chartered – Annual Report 2024 Supplementary informat ion Supplementary ﬁnancial informat ion Five-year summary 1 2024 $mill ion 2023 $mill ion 2022 $mill ion 2021 $mill ion 2020 $mill ion Operating proﬁt before impa irment losses and taxat ion 7,041 6,468 5,405 3,777 4,374 Impairment losses on loans and advances and other credit risk provis ions (547) (508) (836) (254) (2,325) Other impa irment³ (588) (1,008) (425) (372) (98) Proﬁt before taxation 6,014 5,093 4,286 3,347 1,613 Proﬁt attributable to shareholders 4,050 3,469 2,948 2,315 724 Loans and advances to banks 1 43,593 44,977 39,519 44,383 44,347 Loans and advances to customers 1 281,032 286,975 310,647 298,468 281,699 Total assets 849,688 822,844 819,922 827,818 789,050 Deposits by banks 1 25,400 28,030 28,789 30,041 30,255 Customer accounts 1 464,489 469,418 461,677 474,570 439,339 Shareholders’ equity 44,388 44,445 43,162 46,011 45,886 Total capital resources 2 61,666 62,389 63,731 69,282 67,383 Information per ordinary share Basic earnings per share 141.3c 108.6c 85.9c 61.3c 10.4c Underlying earnings per share 3 168.1c 128.9c 97.9c 85.8c 36.1c Div idends per share 4 37.0c 27.0c 18.0c 12.0c – Net asset value per share 1,781.3c 1,629.0c 1,453.3c 1,456.4c 1,409.3c Net tangible asset value per share 1,541.1c 1,393.0c 1,249.0c 1,277.0c 1,249.0c Return on assets 5 0.5% 0.4% 0.4% 0.3% 0.1% Ratios Reported return on ordinary shareholders’ equity 8.4% 7.2% 6.0% 4.2% 0.8% Reported return on ordinary shareholders’ tangible equity 9.7% 8.4% 6.8% 4.8% 0.9% Underlying return on ordinary shareholders’ equity 10.0% 8.7% 6.9% 5.9% 2.6% Underlying return on ordinary shareholders’ tangible equity 11.7% 10.1% 7.7% 6.8% 3.0% Reported cost to income ratio (excluding UK Bank Levy) 63.5% 63.5% 66.3% 73.6% 68.1% Reported cost to income ratio (includ ing UK Bank Levy) 64.0% 64.1% 66.9% 74.3% 70.4% Underlying cost to income ratio (excluding UK Bank levy) 59.4% 63.4% 65.5% 69.8% 66.4% Underlying cost to income ratio (includ ing UK Bank levy) 59.9% 64.1% 66.2% 70.5% 68.7% Capital ratios: CET 1 6 14.2% 14.1% 14.0% 14.1% 14.4% Total capital 6 21.5% 21.2% 21.7% 21.3% 21.2% 1 Excludes amounts held at fair value through proﬁt or loss 2 Shareholders’ funds, non-controlling interests and subordinated loan capital 3 Other impa irment include nil (2023: $850 mill ion) impa irment charge relat ing to the Group’s investment in its associate China Bohai Bank (Bohai) 4 Div idend pa id during the year per share 5 Represents proﬁt attributable to shareholders div ided by the total assets of the Group 6 Unaudited Supplementary ﬁnancial informat ion 383 Standard Chartered – Annual Report 2024 Supplementary informat ion Analysis of underlying performance by key market The following tables provide informat ion for key markets in which the Group operates. The numbers are prepared on a management view. Refer to Note 2 for details. 2024 Hong Kong $mill ion Korea $mill ion China $mill ion Taiwan $mill ion Singapore $mill ion India $mill ion UAE $mill ion UK $mill ion US $mill ion Other $mill ion Group $mill ion Operating income 4,764 1,095 1,321 577 2,573 1,328 836 305 1,289 5,608 19,696 Operating expenses (2,076) (788) (903) (345) (1,293) (914) (439) (1,000) (698) (3,334) (11,790) Operating proﬁt/(loss) before impa irment losses and taxation 2,688 307 418 232 1,280 414 397 (695) 591 2,274 7,906 Credit impa irment (266) (54) (152) (38) (72) (34) 26 11 (1) 23 (557) Other impa irment (114) (1) (28) (11) (73) (72) (28) (23) (26) (212) (588) Proﬁt from associates and joint ventures – – 67 – – – – (7) – (10) 50 Underlying proﬁt/ (loss) before taxation 2,308 252 305 183 1,135 308 395 (714) 564 2,075 6,811 Total assets employed 204,042 47,865 42,811 22,091 110,524 35,655 28,327 170,713 72,205 115,455 849,688 Of which: loans and advances to customers 1 87,891 26,749 15,812 11,860 61,168 13,503 8,207 35,283 29,148 49,936 339,557 Total liab il it ies employed 194,658 39,463 33,367 18,863 116,660 27,666 17,759 127,802 57,138 165,028 798,404 Of which: customer accounts 1 161,961 28,703 27,853 17,252 89,269 18,601 13,845 83,036 23,579 59,164 523,263 2023 Operating income 4,167 1,074 1,158 558 2,455 1,206 794 102 870 4,994 17,378 Operating expenses (1,927) (731) (894) (331) (1,214) (865) (392) (870) (634) (3,278) (11,136) Operating proﬁt/(loss) before impa irment losses and taxation 2,240 343 264 227 1,241 341 402 (768) 236 1,716 6,242 Credit impa irment (372) (48) (113) (42) (48) (31) 24 14 12 76 (528) Other impa irment (17) 1 (5) (5) (14) (11) (5) (15) (5) (54) (130) Proﬁt from associates and joint ventures – – 114 – – – – – – (20) 94 Underlying proﬁt/ (loss) before taxation 1,851 296 260 180 1,179 299 421 (769) 243 1,718 5,678 Total assets employed 190,484 56,638 41,508 21,638 102,724 33,781 20,376 149,982 88,113 117,600 822,844 Of which: loans and advances to customers 1 87,590 33,443 15,882 11,634 62,030 13,832 8,495 31,067 27,434 54,079 345,486 Total liab il it ies employed 183,112 46,666 38,252 20,365 109,825 26,532 17,214 92,168 72,583 165,774 772,491 Of which: customer accounts 1 155,446 37,032 31,211 18,621 86,282 18,709 13,924 72,610 40,846 59,941 534,622 1 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 384 Standard Chartered – Annual Report 2024 Supplementary informat ion Supplementary ﬁnancial informat ion 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. 2024 2023 Corporate & Investment Banking $mill ion Wealth & Retail Banking $mill ion Ventures $mill ion Central & other items $mill ion Total $mill ion Corporate & Investment Banking $mill ion Wealth & Retail Banking $mill ion Ventures $mill ion Central & other items $mill ion Total $mill ion Transaction Services 6,434 50 – – 6,484 6,470 48 – – 6,518 Payments and Liqu id ity 4,605 – – – 4,605 4,645 – – – 4,645 Securit ies & Pr ime Services 611 – – – 611 550 – – – 550 Trade & Working Capital 1,218 50 – – 1,268 1,275 48 – – 1,323 Global Banking 1,935 – – – 1,935 1,705 – – – 1,705 Lending & Financ ial Solut ions 1,677 – – – 1,677 1,500 – – – 1,500 Capital Market & Advisory 258 – – – 258 205 – – – 205 Global Markets 3,450 – – – 3,450 3,049 – – – 3,049 Macro Trading 2,852 – – – 2,852 2,620 – – – 2,620 Credit Trading 644 – – – 644 451 – – – 451 Valuation & Other Adj (46) – – – (46) (22) – – – (22) Wealth Solutions 1 2,488 1 – 2,490 – 1,944 – – 1,944 Investment Products 1 1,825 1 – 1,827 – 1,357 – – 1,357 Bancassurance – 663 – – 663 – 587 – – 587 CCPL & Other Unsecured Lending – 1,081 120 – 1,201 – 1,068 93 – 1,161 Deposits 1 3,774 (29) – 3,746 1 3,621 (52) – 3,570 Mortgages & Other Secured Lending – 395 – – 395 – 400 – – 400 Treasury – – 1 (24) (23) – – 30 (932) (902) Other (3) 28 90 (97) 18 (7) 25 85 (170) (67) Total underlying operating income 11,818 7,816 183 (121) 19,696 11,218 7,106 156 (1,102) 17,378 Insured and uninsured deposits SCB operates and provides services to customers across many countries and insured deposit is determined on the basis of lim its enacted with in local regulat ions. 2024 2023 Insured deposits Uninsured deposits Total $mill ion Insured deposits Uninsured deposits Total $mill ion Bank deposits $mill ion Customer accounts $mill ion Bank deposits $mill ion Customer accounts $mill ion Bank deposits $mill ion Customer accounts $mill ion Bank deposits $mill ion Customer accounts $mill ion Current accounts 8 15,596 19,844 152,101 187,549 9 15,767 20,969 150,559 187,304 Savings deposits – 31,977 – 86,579 118,556 – 27,376 – 91,425 118,801 Time deposits – 28,417 6,717 170,752 205,886 1 23,517 8,295 176,977 208,790 Other deposits – 104 9,393 37,737 47,234 – 93 6,236 48,907 55,236 Total 8 76,094 35,954 447,169 559,225 10 66,753 35,500 467,868 570,131 UK and non-UK deposits The following table summarises the split of Bank and Customer deposits into UK and Non-UK deposits for respective account lines based on the domic ile or res idence of the clients. 2024 2023 UK deposits Non-UK deposits Total $mill ion UK deposits Non-UK deposits Total $mill ion Bank deposits $mill ion Customer accounts $mill ion Bank deposits $mill ion Customer accounts $mill ion Bank deposits $mill ion Customer accounts $mill ion Bank deposits $mill ion Customer accounts $mill ion Current accounts 544 7,734 19,308 159,963 187,549 925 7,062 20,053 159,264 187,304 Savings deposits – 145 – 118,411 118,556 – 330 – 118,471 118,801 Time deposits 315 7,731 6,402 191,438 205,886 310 5,412 7,986 195,082 208,790 Other deposits 2,342 12,744 7,051 25,097 47,234 1,683 16,514 4,553 32,486 55,236 Total 3,201 28,354 32,761 494,909 559,225 2,918 29,318 32,592 505,303 570,131 385 Standard Chartered – Annual Report 2024 Supplementary informat ion Contractual maturity of Loans, Investment securit ies and Depos its 2024 Loans and advances to banks $mill ion Loans and advances to customers $mill ion Investment securit ies – Treasury and other elig ible B ills $mill ion Investment securit ies – Debt securit ies $mill ion Investment securit ies – Equity shares $mill ion Bank deposits $mill ion Customer accounts $mill ion One year or less 66,448 181,863 41,966 47,959 – 29,678 463,566 Between one and ﬁve years 12,122 63,006 41 74,197 – 6,281 57,062 Between ﬁve and ten years 1,680 21,139 – 23,319 – 3 849 Between ten years and ﬁfteen years 71 13,236 – 5,876 – – 1,217 More than ﬁfteen years and undated 239 60,313 – 26,743 6,480 – 569 80,560 339,557 42,007 178,094 6,480 35,962 523,263 Amortised cost and FVOCI exposures 43,593 281,032 Of which: Fixed interest rate exposures 35,383 153,575 Of which: Floating interest rate exposures 8,210 127,457 2023 One year or less 72,717 197,125 38,877 59,023 – 31,333 485,908 Between one and ﬁve years 3,975 52,532 4 69,075 – 4,174 46,365 Between ﬁve and ten years 837 19,184 1 18,804 – 2 567 Between ten years and ﬁfteen years 35 14,084 – 9,276 – – 1,341 More than ﬁfteen years and undated 226 62,561 – 18,155 3,932 – 441 77,790 345,486 38,882 174,333 3,932 35,509 534,622 Amortised cost and FVOCI exposures 44,977 286,975 Of which: Fixed interest rate exposures 38,505 168,697 Of which: Floating interest rate exposures 6,472 118,278 Maturity and yield of Debt securit ies, alternat ive tier one and other elig ible b ills held at amortised cost One year or less Between one and ﬁve years Between ﬁve and ten years More than ten years Total $mill ion Yield % $mill ion Yield % $mill ion Yield % $mill ion Yield % $mill ion Yield % Central and other government agencies – US 1,864 1.53 9,607 1.98 5,187 1.88 4,353 2.76 21,011 2.08 – UK 192 1.70 684 2.07 44 0.88 – – 920 1.93 – Other 3,081 3.20 11,454 3.39 2,932 3.93 25 7.55 17,492 3.46 Other debt securit ies 1,687 6.21 2,676 6.30 4,620 4.86 6,731 5.41 15,714 5.49 As at 31 December 2024 6,824 3.45 24,421 3.12 12,783 3.42 11,109 4.38 55,137 3.48 One year or less Between one and ﬁve years Between ﬁve and ten years More than ten years Total $mill ion Yield % $mill ion Yield % $mill ion Yield % $mill ion Yield % $mill ion Yield % Central and other government agencies – US 1,861 1.39 9,171 1.61 5,799 1.67 4,524 3.89 21,355 2.09 – UK 39 2.75 85 1.06 101 0.67 – – 225 1.18 – Other 5,045 2.72 9,560 2.80 2,289 3.12 81 4.74 16,975 2.84 Other debt securit ies 2,487 6.45 2,658 5.37 2,262 5.44 10,973 5.13 18,380 5.38 As at 31 December 2023 9,432 3.44 21,474 2.61 10,451 2.79 15,578 4.77 56,935 3.37 The maturity distr ibut ions are presented in the above table on the basis of contractual maturity dates. The weighted average yield for each range of maturit ies is calculated by div id ing the annualised interest income for the year by the book amount of debt securit ies at that date. 386 Standard Chartered – Annual Report 2024 Supplementary informat ion Supplementary ﬁnancial informat ion Average balance sheets and yields and volume and price variances Average balance sheets and yields The following tables set out the average balances and yields for the Group’s assets and liab il it ies for the per iods ended 31 December 2024 and 31 December 2023 under the revised deﬁn it ion of net interest margin. For the purpose of these tables, average balances have been determined on the basis of daily balances, except for certain categories, for which balances have been determined less frequently. The Group does not believe that the informat ion presented in these tables would be sign iﬁcantly d ifferent had such balances been determined on a daily basis. Average assets 2024 Average non-interest earning balance $mill ion Average interest earning balance $mill ion Interest income $mill ion Gross yield interest earning balance % Gross yield total balance % Cash and balances at central banks 9,815 57,294 2,520 4.40 3.76 Gross loans and advances to banks 43,184 44,394 2,368 5.33 2.70 Gross loans and advances to customers 57,614 286,588 16,314 5.69 4.74 Impairment provis ions aga inst loans and advances to banks and customers – (5,463) – – – Investment securit ies – Treasury and Other El ig ible B ills 16,101 26,594 1,495 5.62 3.50 Investment securit ies – Debt Secur it ies 58,362 129,931 5,165 3.98 2.74 Investment securit ies – Equ ity Shares 5,278 – – – – Property, plant and equipment and intang ible assets 6,299 – – – – Prepayments, accrued income and other assets 123,832 – – – – Investment associates and jo int ventures 1,105 – – – – Total average assets 321,590 539,338 27,862 5.17 3.24 Average assets 2023 Average non-interest earning balance $mill ion Average interest earning balance $mill ion Interest income $mill ion Gross yield interest earning balance % Gross yield total balance % Cash and balances at central banks 10,466 67,634 2,833 4.19 3.63 Gross loans and advances to banks 34,743 44,161 2,095 4.74 2.66 Gross loans and advances to customers 55,235 301,570 15,698 5.20 4.40 Impairment provis ions aga inst loans and advances to banks and customers – (5,894) – – – Investment securit ies – Treasury and Other El ig ible B ills 7,955 32,026 1,596 4.98 3.99 Investment securit ies – Debt Secur it ies 29,912 133,023 5,005 3.76 3.07 Investment securit ies – Equ ity Shares 3,190 – – – – Property, plant and equipment and intang ible assets 8,861 – – – – Prepayments, accrued income and other assets 126,539 – – – – Investment associates and jo int ventures 1,628 – – – – Total average assets 278,529 572,520 27,227 4.76 3.20 Average liab il it ies 2024 Average non-interest bearing balance $mill ion Average interest bearing balance $mill ion Interest expense $mill ion Rate paid interest bearing balance % Rate paid total balance % Deposits by banks 16,834 21,686 806 3.72 2.09 Customer accounts: Current accounts 41,870 127,624 5,134 4.02 3.03 Savings deposits – 114,641 2,292 2.00 2.00 Time deposits 20,937 187,694 8,340 4.44 4.00 Other deposits 34,954 10,291 510 4.96 1.13 Debt securit ies in issue 11,958 65,521 3,610 5.51 4.66 Accruals, deferred income and other liab il it ies 143,771 1,024 60 5.86 0.04 Subordinated liab il it ies and other borrowed funds – 11,306 744 6.58 6.58 Non-controlling interests 395 – – – – Shareholders’ funds 50,425 – – – – 321,144 539,787 21,496 3.98 2.50 Adjustment for trading book funding cost and others (4,096) Total average liab il it ies and shareholders’ funds 321,144 539,787 17,400 3.22 2.02 387 Standard Chartered – Annual Report 2024 Supplementary informat ion Average liab il it ies 2023 Average non-interest bearing balance $mill ion Average interest bearing balance $mill ion Interest expense $mill ion Rate paid interest bearing balance % Rate paid total balance % Deposits by banks 14,238 24,066 796 3.31 2.08 Customer accounts: Current accounts 41,911 132,537 3,619 2.73 2.07 Savings deposits – 112,046 1,981 1.77 1.77 Time deposits 15,345 186,287 8,204 4.40 4.07 Other deposits 44,211 6,527 488 7.48 0.96 Debt securit ies in issue 12,259 65,579 3,367 5.13 4.33 Accruals, deferred income and other liab il it ies 132,442 1,009 52 5.15 0.04 Subordinated liab il it ies and other borrowed funds – 12,299 951 7.73 7.73 Non-controlling interests 373 – – – – Shareholders’ funds 49,920 – – – – 310,699 540,350 19,458 3.60 2.29 Adjustment for trading book funding cost and others (1,778) Total average liab il it ies and shareholders’ funds 310,699 540,350 17,680 3.27 2.08 Net interest margin 2024 $mill ion 2023 $mill ion Interest income (reported) 27,862 27,227 Average interest earning assets 539,338 572,520 Gross yield (%) 5.17 4.76 Interest expense (reported) 21,496 19,458 Adjustment for trading book funding cost and others (4,096) (1,778) Interest expense adjusted for trading book funding cost and others 17,400 17,680 Average interest-bearing liab il it ies 539,787 540,350 Rate paid (%) 3.22 3.27 Net yield (%) 1.95 1.49 Net interest income adjusted for trading book funding cost and others 10,462 9,547 Net interest margin (%) 1.94 1.67 Volume and price variances The following table analyses the estimated change in the Group’s net interest income attributable to changes in the average volume of interest-earning assets and interest-bearing liab il it ies, and changes in their respective interest rates for the years presented. Volume and rate variances have been determined based on movements in average balances and average exchange rates over the year and changes in interest rates on average interest-earning assets and average interest- bearing liab il it ies. 2024 versus 2023 2023 versus 2022 (Decrease)/increase in interest due to: Net increase/ (decrease) in interest $mill ion (Decrease)/increase in interest due to: Net increase/ (decrease) in interest $mill ion Volume $mill ion Rate $mill ion Volume $mill ion Rate $mill ion Interest earning assets Cash and unrestricted balances at central banks (455) 142 (313) 550 1,518 2,068 Loans and advances to banks 12 261 273 57 1,185 1,242 Loans and advances to customers (845) 1,463 618 (284) 5,814 5,530 Investment securit ies (362) 420 58 (74) 3,209 3,135 Total interest earning assets (1,650) 2,286 636 249 11,726 11,975 Interest bearing liab il it ies Subordinated liab il it ies and other borrowed funds (65) (144) (209) (208) 589 381 Deposits by banks (88) 100 12 (105) 468 363 Customer accounts: Current accounts and savings deposits (69) 1,343 1,274 (458) 3,769 3,311 Time and other deposits 242 483 725 1,601 3,945 5,546 Debt securit ies in issue (3) 239 236 258 1,940 2,198 Total interest bearing liab il it ies 17 2,021 2,038 1,088 10,711 11,799 388 Standard Chartered – Annual Report 2024 Supplementary informat ion Supplementary people informat ion Supplementary people informat ion Global 1 2024 2023 2022 % change Full-time equivalent (FTE) 81,097 84,958 83,195 (4.5) Headcount (year end) 81,145 85,007 83,266 (4.5) Employed workers (permanent) 80,459 84,073 82,319 (4.3) of which are women 36,217 37,598 37,259 (3.7) Fixed-term workers (temporary) 686 934 947 (26.6) of which are women 336 453 429 (25.8) Non-employed workers (NEW) 13,667 12,537 13,962 9.0 Non-outsourced NEW 2 5,149 4,925 5,873 4.5 Outsourced NEW 3 8,518 7,612 8,089 11.9 Headcount (12-month average) 83,292 85,353 82,987 (2.4) Men FTE 43,653 45,993 44,709 (5.1) Headcount 43,665 46,004 44,734 (5.1) Full-time 43,615 45,975 44,683 (5.1) Part-time 50 29 51 72.4 Women FTE 36,518 38,014 37,642 (3.9) Headcount 36,553 38,051 37,688 (3.9) Full-time 36,410 37,926 37,551 (4.0) Part-time 143 125 137 14.4 Undisclosed 4 FTE 926 950 844 (2.6) Headcount 927 952 844 (2.6) Full-time 921 944 843 (2.4) Part-time 6 8 1 (25.0) National it ies 133 129 131 3.1 Posit ion type 2024 2023 2022 % change Management Team 14 13 13 7.7 of which are women 6 7 6 (14.3) of which are women (%) 42.9 53.8 46.2 (20.4) Management Team and their direct reports 5 123 133 131 (7.5) of which are women 42 48 43 (12.5) of which are women (%) 34.1 36.1 32.8 (5.4) Senior leadership 6 4,385 4,541 4,422 (3.4) of which are women 1,453 1,474 1,420 (1.4) of which are women (%) 33.1 32.5 32.1 2.1 Rest of employees 76,760 80,466 78,844 (4.6) of which are women 35,100 36,577 36,268 (4.0) of which are women (%) 45.7 45.5 46.0 0.6 of which have supervisory responsib il it ies 9,912 11,009 11,067 (10.0) of which are women 3,593 3,905 3,995 (8.0) of which are women (%) 36.2 35.5 36.1 2.2 Business FTE 29,544 29,909 30,589 (1.2) Business headcount 29,563 29,929 30,619 (1.2) of which are women 15,331 15,335 15,794 (0.0) Support services FTE 51,554 55,049 52,607 (6.3) Support services headcount 51,582 55,078 52,647 (6.3) of which are women 21,222 22,716 21,894 (6.6) 389 Standard Chartered – Annual Report 2024 Supplementary informat ion Region 7 2024 2023 2022 % change Asia FTE 67,911 71,097 69,329 (4.5) Asia headcount 67,936 71,123 69,364 (4.5) Asia women headcount 31,264 32,452 32,033 (3.7) Asia employed workers headcount 67,452 70,394 68,585 (4.2) Asia ﬁxed-term workers headcount 484 729 779 (33.6) Asia full-time headcount 67,819 71,051 69,257 (4.5) Asia part-time headcount 117 72 107 62.5 Africa FTE 3,984 4,452 4,777 (10.5) Africa headcount 3,985 4,453 4,777 (10.5) Africa women headcount 2,085 2,333 2,497 (10.6) Africa employed workers headcount 3,904 4,366 4,729 (10.6) Africa ﬁxed-term workers headcount 81 87 48 (6.9) Africa full-time headcount 3,981 4,452 4,775 (10.6) Africa part-time headcount 4 1 2 300.0 Middle East FTE 4,035 4,123 4,128 (2.1) Middle East headcount 4,036 4,124 4,144 (2.1) Middle East women headcount 1,430 1,433 1,421 (0.2) Middle East employed workers headcount 3,978 4,066 4,084 (2.2) Middle East ﬁxed-term workers headcount 58 58 60 – Middle East full-time headcount 4,036 4,122 4,142 (2.1) Middle East part-time headcount – 2 2 (100.0) Americas FTE 1,077 1,154 1,090 (6.7) Americas headcount 1,077 1,154 1,091 (6.7) Americas women headcount 473 511 488 (7.4) Americas employed workers headcount 1,077 1,154 1,091 (6.7) Americas ﬁxed-term workers headcount – – – – Americas full-time headcount 1,076 1,153 1,088 (6.7) Americas part-time headcount 1 1 3 – Europe FTE 4,090 4,132 3,871 (1.0) Europe headcount 4,111 4,153 3,890 (1.0) Europe women headcount 1,301 1,322 1,249 (1.6) Europe employed workers headcount 4,048 4,093 3,830 (1.1) Europe ﬁxed-term workers headcount 63 60 60 5.0 Europe full-time headcount 4,034 4,067 3,815 (0.8) Europe part-time headcount 77 86 75 (10.5) Age 2024 2023 2022 % change < 30 years FTE 10,968 13,168 13,826 (16.7) < 30 years headcount 10,973 13,176 13,836 (16.7) < 30 years women headcount 5,775 6,848 7,397 (15.7) 30–50 years FTE 62,663 63,309 61,651 (1.0) 30–50 years headcount 62,689 63,334 61,691 (1.0) 30–50 years women headcount 27,433 27,432 26,870 0.0 > 50 years FTE 7,467 8,480 7,718 (11.9) > 50 years headcount 7,483 8,497 7,739 (11.9) > 50 years women headcount 3,345 3,771 3,421 (11.3) 390 Standard Chartered – Annual Report 2024 Supplementary informat ion Supplementary people informat ion Talent management 8 2024 2023 2022 % change Global voluntary turnover – FTE 7,491 8,200 12,645 (8.7) Global turnover – FTE 10,505 9,712 14,388 8.2 Global voluntary turnover rate (%) 9.1 9.7 15.5 (6.7) Global turnover rate (%) 12.7 11.5 17.6 10.5 Men turnover FTE 5,854 5,214 8,021 12.3 Men (%) 13.1 11.4 18.2 14.7 Women turnover FTE 4,546 4,394 6,230 3.5 Women (%) 12.3 11.6 16.8 6.0 Women as a % of global turnover FTE 43.3 45.2 43.3 (4.3) Asia turnover FTE 8,780 8,293 12,501 5.9 Asia (%) 12.7 11.8 18.4 8.0 Africa turnover FTE 609 387 523 57.4 Africa (%) 14.7 8.6 10.8 71.5 Middle East turnover FTE 460 475 523 (3.1) Middle East (%) 11.4 11.4 12.7 0.3 Americas turnover FTE 171 120 188 42.9 Americas (%) 15.1 10.5 17.8 44.1 Europe turnover FTE 485 438 653 10.7 Europe (%) 11.9 11.0 17.7 8.4 < 30 years turnover FTE 2,302 2,593 4,137 (11.2) < 30 years (%) 19.6 19.2 30.5 2.3 30–50 years turnover FTE 7,067 6,242 9,303 13.2 30–50 years (%) 11.4 9.9 15.2 14.2 > 50 years turnover FTE 1,137 878 947 29.5 > 50 years (%) 13.3 11.0 13.1 21.3 Average tenure (years) – Men 7.8 7.3 7.1 6.8 Average tenure (years) – Women 8.4 7.9 7.6 6.3 Global new hires – FTE 9 7,176 12,145 17,432 (40.9) Global new hire rate (%) 8.6 14.2 21.0 (39.5) Men new hire FTE 3,777 6,875 9,683 (45.1) Men (%) 8.4 14.9 21.7 (43.7) Women new hire FTE 3,314 5,044 7,384 (34.3) Women (%) 8.9 13.2 19.6 (32.5) Women as a % of global new hires FTE 46.2 41.5 42.4 11.2 Asia new hire FTE 6,077 10,653 15,441 (43.0) Asia (%) 8.7 14.9 22.4 (41.7) Africa new hire FTE 202 236 463 (14.4) Africa (%) 4.8 5.2 9.3 (7.0) Middle East new hire FTE 381 379 471 0.5 Middle East (%) 9.3 9.0 11.3 4.3 Americas new hire FTE 77 156 180 (50.6) Americas (%) 6.8 13.7 17.0 (50.2) Europe new hire FTE 439 721 876 (39.0) Europe (%) 10.7 17.8 23.3 (40.2) < 30 years new hire FTE 3,109 4,963 7,673 (37.4) < 30 years (%) 25.8 35.5 54.7 (27.3) 30–50 years new hire FTE 3,856 6,841 9,357 (43.6) 30–50 years (%) 6.2 10.8 15.2 (43.0) > 50 years new hire FTE 211 341 401 (38.1) > 50 years (%) 2.4 4.2 5.4 (41.9) Roles ﬁlled internally (%) 9 45.7 32.3 37.3 41.6 of which ﬁlled by women (%) 40.7 41.6 41.0 (2.3) Absenteeism rate 10 (%) 1.3 1.3 1.4 (1.5) Employee job satisfact ion (%) 81.0 83.0 80.0 (2.4) 391 Standard Chartered – Annual Report 2024 Supplementary informat ion Learning 11 2024 2023 2022 % change Employees receiv ing tra in ing (%) 99.1 99.5 99.5 (0.4) Employees receiv ing tra in ing for personal development (%) 92.7 96.2 91.6 (3.7) Women (%) 92.5 95.8 90.0 (3.4) Senior leadership (%) 6 88.8 93.4 94.9 (4.9) Average number of train ing hours per employee 34.8 38.0 36.9 (8.5) Women 33.8 37.0 35.4 (8.7) Men 35.5 38.8 38.1 (8.4) Employed workers 34.9 38.1 37.1 (8.4) Fixed-term workers 25.0 33.3 21.9 (24.9) Average cost of train ing per employee ($) 12 702 730 743 (3.8) Divers ity 2024 2023 2022 % change % of women who remained employed 12 months after their return from parental leave 79.5 75.2 72.4 5.7 % of employees who remained employed by the company 12 months after their return from parental leave 82.1 79.1 72.6 3.7 % of Information Technology (IT) and/or Engineer ing roles ﬁlled by women 13 24.4 24.2 24.0 0.7 % of senior leadership and managerial roles ﬁlled by women 6,14 35.3 34.6 35.0 1.9 % of middle management roles ﬁlled by women 14 36.2 35.5 36.1 2.0 % of non-managerial posit ions ﬁlled by women 14 47.2 47.0 47.6 0.3 % of women total promotions 47.6 46.0 46.1 3.5 Executive and non-executive directors 15 Men 7 8 8 (12.5) Women 5 5 6 – % of men 58.3 61.5 57.1 (5.2) % of women 41.7 38.5 42.9 8.3 White Brit ish or other Wh ite (includ ing m inor ity-Wh ite groups) 8 9 11 (11.1) Asian/Asian Brit ish 4 4 3 – Black/African/Caribbean/Black Brit ish – – – – Mixed/multiple ethnic groups – – – – Other ethnic group – – – – White Brit ish or other Wh ite (includ ing m inor ity-Wh ite groups) (%) 66.7 69.2 78.6 (3.7) Asian/Asian Brit ish (%) 33.3 30.8 21.4 8.3 Black/African/Caribbean/Black Brit ish (%) 0.0 0.0 0.0 – Mixed/multiple ethnic groups (%) 0.0 0.0 0.0 – Other ethnic group (%) 0.0 0.0 0.0 – Number of senior posit ions (CEO, CFO, SID and Cha ir) 16 Men 3 3 3 – Women 1 1 1 – White Brit ish or other Wh ite (includ ing m inor ity-Wh ite groups) 4 4 4 – Asian/Asian Brit ish – – – – Black/African/Caribbean/Black Brit ish – – – – Mixed/multiple ethnic groups – – – – Other ethnic group – – – – % of Board members who have a cultural background different from the location of the corporate headquarters 17 91.7 84.6 71.4 8.3 Executive management 18 15 14 14 7.1 Men 9 7 8 28.6 Women 6 7 6 (14.3) % of men 60.0 50.0 57.1 20.0 % of women 40.0 50.0 42.9 (20.0) White Brit ish or other Wh ite (includ ing m inor ity-Wh ite groups) 6 5 6 20.0 Asian/Asian Brit ish 6 6 6 – Black/African/Caribbean/Black Brit ish 1 1 1 – 392 Standard Chartered – Annual Report 2024 Supplementary informat ion Supplementary people informat ion Divers ity 2024 2023 2022 % change Mixed/multiple ethnic groups – – – – Not specif ied/prefer not to say 1 2 1 (50.0) Other ethnic group 1 – – – White Brit ish or other Wh ite (includ ing m inor ity-Wh ite groups) (%) 40.0 35.7 42.9 12.0 Asian/Asian Brit ish (%) 40.0 42.9 42.9 (6.7) Black/African/Caribbean/Black Brit ish (%) 6.7 7.1 7.1 (6.7) Mixed/multiple ethnic groups (%) 0.0 0.0 0.0 – Not specif ied/prefer not to say (%) 6.7 14.3 7.1 (53.3) Other ethnic group (%) 6.7 – – – UK senior leadership 6, 19 (% declared) UK Black ethnic ity 2.5 2.5 2.5 0.4 UK ethnic minor ity 28.4 27.8 26.4 2.1 US senior leadership 6, 19 (% declared) US Black ethnic ity 3.6 4.0 4.7 (10.2) US Hispan ic or Lat inx ethnic ity 10.9 10.1 9.9 7.7 Work-related Health & Safety 2024 2023 2022 change Fatalit ies 20 0 3 1 (100.0) Fatalit ies (rate per m ill ion hours worked) 20 0 0.030 0.010 (100.0) Major in juries 20,21,22,23 14 21 20 (33.3) Major in juries (rate per mill ion hours worked) 20,24 0.08 0.11 0.11 (27.3) Recordable work-related injuries 20,25 122 115 83 6.1 Recordable work-related injuries (rate per mill ion hours worked) 20,24 0.68 0.59 0.44 15.3 Work-related ill-health (fatalit ies) – – – – Lost Time Injur ies (rate per m ill ion hours worked) 24 0.13 Not reported Not reported – 1 Excludes 868 employees (headcount) from Dig ital Ventures ent it ies (Appro, Audax, Cashenable, Furaha, Labamu, Letsbloom, L ibeara, MyZoi, Solv Ghana, Solv India, Solv Kenya, Solv Malaysia, TASConnect, Zodia Custody, Zodia Markets). Excludes 409 Person of Interest (headcount) following a recategorisat ion of worker types from 2022, i.e. independent non-executive directors, advisors, external auditors and regulators. Includes employees operating in discont inued/restructured businesses. Percentage change refers to the percentage change from 2023 to 2024. All ﬁgures above are presented to 1 decimal place and the corresponding percentage changes are derived from actual data without rounding to 1 decimal place to remain as accurate as possible. 2 Non-outsourced NEWs are resources engaged on a time and materials basis where task selection and supervis ion is the responsib il ity of the Bank, such as agency workers. 3 Outsourced NEWs are arrangements with a third party vendor where the delivery is based on a specif ic serv ice or outcome at an agreed price, irrespect ive of the number of resources required to perform the service. These resources are not considered as the Group’s headcount. 4 The disclosure of gender informat ion is not mandatory in some markets. 5 Management Team (MT) and colleagues who report to them, excluding admin istrat ive or executive support roles (personal assistant, business planning managers). 6 Senior leadership is deﬁned as Managing Directors and Bands 4 (includ ing Management Team). 7 Region metrics are now aligned with the geographical regions and all prior periods data has been aligned with these geographical regions. 8 Turnover metrics are based on permanent employed workers only. New hire metrics are based on external new hires. Turnover and new hire metrics are based on average 12-month FTE. These metrics are not shown for the undisclosed gender population due to a small population size. Overall turnover rate in 2024 is in an upward trend, however the voluntary turnover has declined in 2024 compared with 2023.As voluntry turnover declined, the need for hir ing reduced accord ingly compared with 2023, resulting in fewer new hires. 9 In 2024, the bank launched intervent ions to dr ive more headcount and vacancy disc ipl ine and increase our focus on an internal ﬁrst hir ing strategy, where possible. The success of these intervent ions saw a strong uptake in redeploying the banks internal talent resulting in an 13 percentage point increase compared to the prior year. 10 Represents health and disab il ity related absence. Excludes Korea. 11 Learning metrics exclude non-employed workers (NEWs). Train ing for personal development is deﬁned as all train ing exclud ing mandatory or role specif ic train ing. Average tra in ing hours ( includ ing mandatory tra in ing) has been updated to include self-declared external train ing hours and pr ior periods have been restated for comparison. The strength of our learning agenda is reﬂected with 99.1% of our employees receiv ing tra in ing in 2024. Across the year, we have consolidated learning programmes to more effectively and efﬁc iently del iver skills and knowledge-build ing to colleagues. We have further balanced learn ing campaigns with the ongoing changes in our operating models and transformation agenda. These actions have resulted in a reduction of the number of overall train ing hours per employee; and wh ile the % of employees receiv ing tra in ing for personal development also decl ined from 2023, it continued to stay above 2022 trends. 12 Average cost of train ing per employee includes cost of learning management system. 13 Represents the % of Information Technology (IT) and/or Engineer ing roles ﬁlled by women. IT and/or eng ineer ing roles is deﬁned as employees who work in the IT job function, includ ing Eng ineer ing roles (exclud ing Innovation, Transformation & Ventures) and/or certain job famil ies in the Data and Analytics job function. 14 Represents the percentage of women that are in the respective population groups. For the purpose of this metric, managerial/middle management roles are considered as roles which have people leader responsib il it ies exclud ing senior leadership. Non-managerial roles do not have people leader responsib il it ies. 15 Executive and non-executive directors refer to the UK PLC Board. Data has been collected by way of the directors’ annual self-declarations. 16 For the purpose of this metric, senior posit ions in the Board include the Group Chairman, Group Chief Executive, Group Chief Financ ial Ofﬁcer and Sen ior Independent Director. 17 Percentage of Board Members whose cultural background is different from the location of the corporate headquarters (UK). 18 For the purpose of this metric, executive management refers to Management team plus Group Company Secretary as deﬁned by UK List ing Rules. Other Ethn ic Group : “All other ethnic groups excluding White, Asian, Black and Mixed” 19 Ethnic ity % has been der ived based on colleagues who have declared their ethnic ity aga inst the overall UK/US population respectively (includ ing colleagues who have not made a declaration). 20 2023 ﬁgures have been updated with 5 addit ional injuries and 1 contractor related fatality recorded in 2024 but occurred in 2023. 21 Per UK Health and Safety Executive deﬁn it ion. 22 The most common type of major in jury is fractures (57%). 23 2024 includes three contractor/vis itors; 2023 includes 5 contractor/vis itors; 2022 includes 1 contractor/vis itor. 24 2024 hours worked 179,485,255; 2023 hours worked 192,870,120; 2022 hours worked 188,758,285. 25 2024 includes 20 contractor/vis itors; 2023 includes 31 contractor/vis itors; 2022 includes 18 contractors/vis itor. 393 Standard Chartered – Annual Report 2024 Supplementary informat ion Pillar Key performance ind icators Period Status 2024 progress update Sustainable Finance Mobil ise $300 b ill ion in sustainable ﬁnance¹ 2021– 2030 Mobil ised $121 b ill ion between January 2021 and September 2024. Strong progress was made in 2024. We antic ipate that mob il isat ion of sustainable ﬁnance will not be linear and will likely increase over time as the market matures and we help our clients transit ion. We remain on track for our overall target in 2030. Pillar Key performance ind icators Period Status 2024 progress update Operations Net zero in our operations (Scope 1 and 2 GHG emiss ions) 2019– 2025 We reduced our Scope 1 and 2 emiss ions by 28% dur ing 2024 to 24,968 tCO 2 e. Our real estate (net internal area 2 ) decreased by 3.4% during that time. The Group purchased and retired carbon credits for our residual operational Scope 1 and 2 emiss ions. We remain on track for our overall 2025 target. Increase renewable energy sourcing to 100% by 2025 (RE100 compliant) 2022– 2025 77% of our electric ity came from renewable sources across our portfolio after matching consumption with renewable energy certif icates (RECs). We continue to work towards purchasing renewable energy in every country possible and are striv ing to meet our 100% RE100 target by 2025. However, due to market constraints and lack of renewable energy options in some markets with in Afr ica and the Middle East (for example, Bahrain, Botswana, Ghana, Iraq and Tanzania), we may not be able to meet our RE100 aspirat ion. Desp ite this, we remain committed to the in it iat ive, however, acknowledging that market constraints may lim it our abil ity to ach ieve these goals in the short/mid-term, ﬁnancial or other constra ints may reasonably prevent the Group from taking all available steps to meet the target. Divert 90% of waste from landﬁll by 2030 2020– 2030 In 2024, we reduced our overall waste generated by 18% and achieved 61% avoidance of landﬁll (up from 52% in 2023). Suppliers Direct at least 50% of our total spend 3 with suppliers who have set science- based emiss ions reduct ion targets 2023– 2027 New KPI added on supplier net zero engagement targets to enable the Group to support vendors’ development of sustainab il ity goals and allow the Group to be more transparent on emiss ions. Financed Emiss ions Achieve 2030 inter im ﬁnanced emiss ions reduct ion in our highest emitt ing sectors 4 • -29% in oil and gas (absolute) from a 2020 baseline • -46–67% in power (production intens ity) from a 2021 basel ine • -22–32% in steel (production intens ity) from a 2021 baseline • -85% emiss ions reduct ion in thermal coal min ing (absolute) from a 2020 baseline • Mainta in a 1.5°C compl iant production–intens ity in aluminum from a 2021 baseline • Reduce our alignment delta in shipp ing to 0% from a 2021 basel ine • -44–63% in automotive manufacturers (physical intens ity) from a 2021 baseline • -22% in cement (production intens ity) from a 2021 baseline 2020/ 2021– 2030 Progress on our net zero sector targets remains on track with reductions in emiss ions seen in all sectors year–on–year. Reporting against our aviat ion sector target was resumed during the year following the sale of the aircraft leasing business and the major ity of the lend ing portfolio during the prior period. For further details on our progress towards our inter im net zero targets please refer to page 80. 1. Mobil ise susta inable ﬁnance 2. Operational ise inter im 2030 ﬁnanced em iss ions targets to meet our 2050 net zero amb it ion Supplementary sustainab il ity informat ion Sustainab il ity aspirat ions 394 Standard Chartered – Annual Report 2024 Supplementary informat ion Supplementary sustainab il ity informat ion Pillar Key performance ind icators Period Status 2024 progress update • -47–74% in commercial real estate (production intens ity) from a 2021 baseline • 33% reduction in aviat ion sector physical intens ity from a 2021 basel ine • -15-23% in resident ial mortgages (production intens ity) from a 2021 baseline Set and disclose 2030 ﬁnanced emiss ions targets for h igh-emitt ing and carbon-intens ive sectors in line with Net-Zero Banking Alliance (NZBA) guidel ines: • 2024: Develop 2030 target for agriculture to be communicated in our 2024 Annual Report 2021– 2024 Targets have been set for agriculture, please refer to page 80 for more informat ion. Facil itated Emiss ions Achieve 2030 inter im fac il itated emiss ions reduct ion in our highest emitt ing sector: • -27% in oil and gas (absolute) from a 2021 baseline 2021– 2030 As part of our net zero roadmap and as announced at our 2024 AGM, the Group has committed to set a facil itated em iss ions target. We have fulﬁlled th is commitment via setting a standalone absolute emiss ion facil itated target for o il and gas, which currently makes up the majority of em iss ions w ith in our fac il itat ion portfolio. Please refer to page 88 for more informat ion. 1 We deﬁne mobil isat ion of sustainable ﬁnance as any investment or ﬁnanc ial serv ice provided to clients that supports: (i) the preservation and/or improvement of biod ivers ity, nature or the environment; (i i) the long-term avo idance/decrease of GHG emiss ions, includ ing the al ignment of a client’s business and operations with a 1.5°C trajectory (known as transit ion ﬁnance); ( i i i) a social purpose; or (iv) incent iv ises our clients to meet their own sustainab il ity object ives (known as sustainab il ity-linked ﬁnance). It is a measure of total capital mobil ised and cons iders the total value being committed facil it ies provided. 2 The deﬁnit ion used for measuring real estate is the net internal area (NIA) of our premises. Because the Group’s portfolio is constantly changing, divest ing and invest ing accord ing to business needs, NIA often varies between the start and end of an environmental year. Therefore, the NIA of a site is calculated by taking the monthly average area (in square metres) over the entire environmental year. It does not consider the area that falls under ATM, bin collection points, cash vault, warehouse, closed branch space and vacant space. NIA excludes common areas, such as build ing corr idors, common toilets, lift lobbies, lift shafts, lift motor rooms, ﬁre escape staircase, common rises, plant rooms, cleaner’s room, common pantries, telecommunicat ions equ ipment rooms and fuel stores. 3 Spend includes Scope 3, Category 1: Purchased Goods and Services and Capital Goods suppliers excluding non-addressable spend. Addressable spend is deﬁned as external costs incurred by Standard Chartered in the normal course of business where Supply Chain Management has inﬂuence over where the spend is placed. It excludes costs such as government and brokerage fees, rates and taxes and employee expenses. It also excludes any Category 1 co-location data centres which are calculated on energy use and reported separately under Scope 3. 4 Refer to the Group’s ‘Net Zero Methodological White Paper – The journey continues’ via sc.com/sustainab il ityl ibrary and our Posit ion Statements ava ilable at sc.com/posit ionstatements 3. Enhance and deepen leadership with in the susta inab il ity ecosystem Pillar Key performance ind icators Period Status 2024 progress update Market Integrity, Trust, Conduct and Compliance Partnering to lead the ﬁght against ﬁnancial cr imes: • Partic ipat ing in public–private partnerships to contribute to understanding most recent developments, share intell igence and good practices • Contribute to developing typologies and red ﬂags for ﬁnancial ﬂows Ongoing Throughout 2024 the Group’s commitment to leading the ﬁght against ﬁnanc ial cr ime was fostered through strong industry and regulatory collaboration. The Group continued posit ive engagement w ith internat ional and reg ional standard-setters, such as the Financ ial Act ion Task Force and Wolfsberg Group. Across our geographic footprint we work in partnership with regulators and industry associat ions to inform and reform ﬁnancial cr ime legislat ion and regulat ion. The Group promotes effective ﬁnanc ial cr ime compliance and risk ident iﬁcation through part ic ipat ion at ﬁnanc ial crime conferences as speakers, panelists and subject matter experts. Public–private partnerships to tackle ﬁnancial cr ime remain a key focus of the Group, with ongoing partic ipat ion to evolve exist ing partnersh ips and provide support to countries and bodies seeking to establish new informat ion-shar ing arrangements. Develop and deliver a targeted outreach programme, includ ing through key internat ional platforms, a imed at safely and transparently reducing barriers to capital mobil isat ion for sustainable development 2022– 2024 The Group continued to proactively engage in policy discuss ions v ia a number of major internat ional and regional platforms and conferences. Through these activ it ies, the Group sought to promote robust policy and regulatory frameworks to ensure the credib il ity and integr ity of susta inable ﬁnance (includ ing trans it ion ﬁnance), and to support private capital mobil isat ion for sustainable development. Execution of at least 12 transactions by 2027 which are aligned with Standard Chartered’s sustainab il ity themed Innovation Hubs 2025– 2027 With the establishment of the Innovation Hubs, the KPI was introduced to drive deal incubat ion and ensure impactful transactions that advance the sustainab il ity ecosystem in our markets. Please refer to pages 66-68 for more informat ion on the Innovat ion Hubs. 2. Operational ise inter im 2030 ﬁnanced em iss ions targets to meet our 2050 net zero amb it ion 395 Standard Chartered – Annual Report 2024 Supplementary informat ion Pillar Key performance ind icators Period Status 2024 progress update People We aspire to have 35 per cent representation 5 of women at a global senior level 6 by end of 2025 2016– 2025 Women leadership representation at the end of 2024 was 33.1%. We remain on track for our overall target in 2025. Increase our Culture of Inclusion score to 84.5% 7 2020– 2024 Our Inclusion Index score remains high with a score of 82.1% in 2024. Though colleague sentiment dropped marginally in the 2024 annual My Voice survey (from 83.2% in 2023), the experience of working at the bank remains a broadly posit ive one. More colleagues feel they can exerc ise their judgement when making decis ions. Most feel treated w ith respect, combined with the abil ity to choose a reasonable balance between personal and work life and having access to tools to execute their job. While the Group missed its aspirat ional 2024 Inclus ion Index target of 84.5%, there has been a +5.14ppt overall increase in the Inclusion Index since 2018. Grow our employee My Voice score to the question “The way we operate day-to-day is aligned with our sustainab il ity strategy” from 2021 baseline of 84% to 88% 2022– 2024 The 2024 My Voice data conﬁrms the 2024 target of 88% was not met. There was a 3ppt drop from 86% in 2023 to 83% in 2024. Despite the My Voice sentiment causing us to miss our target, the successes we have achieved in meeting all of our ambit ious external susta inab il ity commitments to date serve as proof points that we are executing on our sustainab il ity strategy. Communit ies Invest 0.75% of prior-year operating proﬁt (PYOP) in our communit ies Ongoing Achieved 1.6% PYOP, refer to page 92 for addit ional details. Enable and support a total of 140,000 decent jobs 8 through the following breakdown: • 70,000 jobs accessed by young female partic ipants employment 9 by 2030 • 70,000 direct jobs 10 enabled by supported microbus inesses by 2030 2024– 2030 New KPI added to reﬂect the new community impact strategy and replace the communit ies KPIs that were achieved in 2023. 5 Subject to local legal requirements 6 Senior level refers to roles that are at least at the level of Executive Director (Band 4) and Managing Directors (Band 3) as of 31 December of each reporting year. 7 The ‘Culture of Inclusion’ score is based on several questions in the My Voice employee engagement survey that relate to different concepts of inclus ion, includ ing being respected and valued for contribut ions, be ing heard and involved in decis ions, career development and opportun it ies, and work l ife balance. 8 Decent jobs/employment: comprise formal employment and self-employment. ‘Decent’ aligns with the International Labour Organizat ion (ILO) deﬁnit ion, but in recognit ion of the challenges in many markets to satisfy every criter ia for ‘decent’, our Futuremakers in it iat ive counts those part ic ipants who have met m in imum wage plus at least two addit ional ILO cr iter ia. 9 Young female partic ipants rema in in decent employment six months post intervent ion. 10 Direct jobs comprise of paid employment opportunit ies (d irect employees, active associates, contractors, support/gig workers, and the entrepreneurs themselves) directly created by the supported microbus inesses. These may be part-t ime or full-time, with each job accounted for as a single unit. This KPI is based on actual data collated from project alumni over the seven year period, estimates based on empir ical research, and ex-post project evaluat ions. Concluded in the year Ongoing aspirat ions Achieved Not achieved On track Not on track 4. Drive social impact with our clients and communit ies 396 Standard Chartered – Annual Report 2024 Supplementary informat ion Shareholder informat ion Shareholder informat ion Div idend and Interest Payment Dates Ordinary Shares Final Div idend Results and div idend announced 21 February 2025 Ex-div idend date 27 (UK) 26 (HK) March 2025 Record date for div idend 28 March 2025 Last date to amend currency election instruct ions for cash d iv idend* 24 April 2025 Div idend payment date 19 May 2025 * In either United States dollars, sterling or Hong Kong dollars Preference Shares 1st half yearly div idend 2nd half yearly div idend 7 3 ∕ 8 per cent non-cumulative irredeemable preference shares of £1 1 April 2025 1 October 2025 8 1 ∕ 4 per cent non-cumulative irredeemable preference shares of £1 each 1 April 2025 1 October 2025 6.409 per cent non-cumulative redeemable preference shares of $5 each 30 January and 30 April 2025 30 July and 30 October 2025 7.014 per cent non-cumulative redeemable preference shares of $5 each 30 January 2025 30 July 2025 Annual General Meeting The Annual General Meeting (AGM) will be held on Thursday, 8 May 2025 at 11.00am UK time (6.00pm Hong Kong time). Further details regarding the format, location and business to be transacted at the meeting will be disclosed with in the 2025 Notice of AGM. Details of voting at the Company’s AGM and of proxy votes cast can be found on the Company’s website at sc.com/agm Interim results The inter im results w ill be announced to the London Stock Exchange and the Stock Exchange of Hong Kong Lim ited and put on the Company’s website. Country-by-Country Reporting In accordance with the requirements of the Capital Requirements (Country-by-Country Reporting) Regulations 2013, the Group will publish addit ional country-by-country informat ion in respect of the year ended 31 December 2024, on or before 31 December 2025. We have also published our UK Tax Strategy. This informat ion w ill be available on the Group’s website at sc.com Pillar 3 Reporting In accordance with the Pillar 3 disclosure requirements, the Group will publish the Pillar 3 Disclosures in respect of the year ended 31 December 2024, on or before 21 February 2025. This informat ion w ill be available on the Group’s website at sc.com ShareCare ShareCare is available to shareholders on the Company’s UK register who have a UK address and bank account. It allows you to hold your Standard Chartered PLC shares in a nominee account. Your shares will be held in electronic form so you will no longer have to worry about keeping your share certif icates safe. If you join ShareCare, you w ill still be inv ited to attend the Company’s AGM and you will receive any div idend at the same time as everyone else. ShareCare is free to jo in and there are no annual fees to pay. If you would like to receive more informat ion, please v is it sc.com/sharecare or contact the shareholder helpline on 0370 702 0138 Donating shares to ShareGift Shareholders who have a small number of shares often ﬁnd it uneconomical to sell them. An alternative is to consider donating them to the charity ShareGift (registered charity 1052686), which collects donations of unwanted shares until there are enough to sell and uses the proceeds to support UK charit ies. There is no impl icat ion for capital gains tax (no gain or loss) when you donate shares to charity and UK taxpayers may be able to claim income tax relief on the value of their donation. Further informat ion can be obta ined from the Company’s registrars or from ShareGift on 020 7930 3737 or from sharegift.org Bankers’ Automated Clearing System (BACS) Div idends can be pa id straight into your bank or build ing society account. Please register online at investorcentre.co.uk or contact our registrar for a div idend mandate form Registrars and shareholder enquir ies If you have any enquir ies relat ing to your shareholding and you hold your shares on the UK register, please contact our registrar at investorcentre.co.uk/contactus. Alternatively, please contact Computershare Investor Services PLC, The Pavil ions, Br idgwater Road, Bristol, BS99 6ZZ or call the shareholder helpline number on 0370 702 0138. If you hold your shares on the Hong Kong branch register and you have enquir ies, please contact Computershare Hong Kong Investor Services Lim ited, 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong. You can check your shareholding at computershare.com/hk/investors Substantial shareholders The Company and its shareholders have been granted partial exemption from the disclosure requirements under Part XV of the Securit ies and Futures Ord inance (SFO). As a result of this exemption, shareholders, directors and chief executives, no longer have an obligat ion under Part XV of the SFO (other than Div is ions 5, 11 and 12 thereof) to notify the Company of substantial shareholding interests, and the Company is no longer required to mainta in a reg ister of interests of substantial shareholders under section 336 of the SFO, nor a register of directors’ and chief executives’ interests under section 352 of the SFO. The Company is, however, required to ﬁle with The Stock Exchange of Hong Kong Lim ited any disclosure of interests made in the UK. 397 Standard Chartered – Annual Report 2024 Supplementary informat ion Taxation No tax is currently withheld from payments of div idends by Standard Chartered PLC. Shareholders and prospective purchasers should consult an appropriate independent professional adviser regarding the tax consequences of an investment in shares in light of their particular circumstances, includ ing the effect of any nat ional, state or local laws. Chinese translation If you would like a Chinese language version of the 2024 Annual Report, please contact Computershare Hong Kong Investor Services Lim ited, 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong. 二〇二四年年報之中文譯本可向香港中央證券登記有限公司索取, 地址：香港灣仔皇后大道東183號合和中心17M樓。 Shareholders on the Hong Kong branch register who have asked to receive corporate communicat ions in either Chinese or English can change this election by contacting Computershare. If there is a dispute between any translation and the English version of this Annual Report, the English text shall prevail. Electronic communicat ions If you hold your shares on the UK register and in future you would like to receive the Annual Report electronically rather than by post, please register online at: investorcentre.co.uk. Click on ‘register now’ and follow the instruct ions. You w ill need to have your Shareholder or ShareCare reference number to hand. You can ﬁnd this on your share certif icate or ShareCare statement. Once you have registered and conﬁrmed your email communicat ion preference, you w ill receive future notif icat ions via email enabling you to submit your proxy vote online. In addit ion, as a member of Investor Centre, you w ill be able to manage your shareholding online and change your bank mandate or address informat ion. Important notices Forward-looking statements The informat ion included in this document may contain ‘forward-looking statements’ based upon current expectations or beliefs as well as statements formulated with assumptions about future events. Forward-looking statements include, without lim itat ion, project ions, est imates, commitments, plans, approaches, ambit ions and targets (includ ing, w ithout lim itat ion, ESG commitments, ambit ions and targets). Forward-looking statements often use words such as ‘may’, ‘could’, ‘will’, ‘expect’, ‘intend’, ‘estimate’, ‘antic ipate’, ‘bel ieve’, ‘plan’, ‘seek’, ‘aim’, ‘continue’ or other words of sim ilar mean ing to any of the foregoing. Forward- looking statements may also (or addit ionally) be ident iﬁed by the fact that they do not relate only to histor ical or current facts. By their very nature, forward-looking statements are subject to known and unknown risks and uncertaint ies and other factors that could cause actual results, and the Group’s plans and objectives, to d iffer materially from those expressed or impl ied in the forward-looking statements. Readers should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause the Group’s actual results and its plans and object ives to d iffer materially from those expressed or impl ied in forward-looking statements. The factors include (but are not lim ited to): changes in global, polit ical, econom ic, business, competit ive and market forces or condit ions, or in future exchange and interest rates; changes in environmental, geopolit ical, soc ial or physical risks; legal, regulatory and policy developments, includ ing regulatory measures addressing climate change and broader sustainab il ity-related issues; the development of standards and interpretat ions, includ ing evolv ing requirements and practices in ESG reporting; the abil ity of the Group, together with governments and other stakeholders to measure, manage, and mit igate the impacts of climate change and broader sustainab il ity-related issues effectively; risks aris ing out of health crises and pandemics; risks of cyber-attacks, data, informat ion or secur ity breaches or technology failures involv ing the Group; changes in tax rates or policy; future business combinat ions or d ispos it ions; and other factors specif ic to the Group, includ ing those ident iﬁed in this Annual Report and ﬁnancial statements of the Group. To the extent that any forward-looking statements contained in this document are based on past or current trends and/or activ it ies of the Group, they should not be taken as a representation that such trends or activ it ies will continue in the future. No statement in this document is intended to be, nor should be interpreted as, 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 histor ical or publ ished earnings of the Group. Each forward-looking statement speaks only as of the date that it is made. Except as required by any applicable laws or regulations, the Group expressly discla ims any obl igat ion to rev ise or update any forward- looking statement contained with in th is document, regardless of whether those statements are affected as a result of new informat ion, future events or otherw ise. Please refer to this Annual Report and the ﬁnanc ial statements of the Group for a discuss ion of certa in of the risks and factors that could adversely impact the Group’s actual results, and cause its plans and object ives, to differ materially from those expressed or impl ied in any forward looking statements. Non-IFRS performance measures and alternative performance measures The Group ﬁnancial statements have been prepared in accordance with UK-adopted internat ional account ing standards and International Financ ial Report ing Standards (IFRS) as adopted by the European Union. Standard Chartered PLC’s ﬁnancial statements have been prepared in accordance with UK-adopted internat ional account ing standards (IAS) as applied in conformity with section 408 of the Companies Act 2006. This document may contain ﬁnancial measures and rat ios not specif ically deﬁned under IFRS or IAS and/or alternative performance measures as deﬁned in the European Securit ies and Market Author ity guidel ines. Such measures may exclude certa in items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. These measures are not a substitute for IAS or IFRS measures and are based on a number of assumptions that are subject to uncertaint ies and change. Please refer to this Annual Report and the ﬁnancial statements of the Group for further informat ion, includ ing reconc il iat ions between the underlying and reported measures. 398 Standard Chartered – Annual Report 2024 Supplementary informat ion Shareholder informat ion Financ ial instruments Nothing in this document shall constitute, in any jur isd ict ion, an offer or solic itat ion to sell or purchase any securit ies or other ﬁnancial instruments, nor shall it constitute a recommendation or advice in respect of any securit ies or other ﬁnancial instruments or any other matter. Basis of Preparation and Caution Regarding Data Lim itat ions This section is specif ically relevant to, amongst others, the sustainab il ity and climate models, calculations and disclosures throughout this report. The informat ion conta ined in this document has been prepared on the following basis: i. disclosures in the Strategic report, Financ ial rev iew, Sustainab il ity review, Directors’ report, Risk review and Capital review and Supplementary informat ion are unaudited unless otherwise stated; i i. all informat ion, pos it ions and statements set out in this document are subject to change without notice; i i i. the informat ion included in this document does not constitute any investment, accounting, legal, regulatory or tax advice or an inv itat ion or recommendation to enter into any transaction; iv. the informat ion included in this document may have been repaired using models, methodologies and data which are subject to certain lim itat ions. These lim itat ions include: the lim ited ava ilab il ity of reliable data, data gaps, and the nascent nature of the methodologies and technologies underpinn ing th is data; the lim ited standard isat ion of data (given, amongst other things, lim ited internat ional coordinat ion on data and methodology standards); and future uncertainty (due, amongst other things, to changing project ions relat ing to technological development and global and regional laws, regulations and polic ies, and the current inab il ity to make use of strong histor ical data); v. models, external data and methodologies used in informat ion included in this document are or could be subject to adjustment which is beyond our control; vi. any opin ions and est imates should be regarded as ind icat ive, prelim inary and for illustrat ive purposes only. Expected and actual outcomes may differ from those set out in this document (as explained in the “Forward-looking statements” section above); vi i. some of the related informat ion appear ing in this document may have been obtained from public and other sources and, while the Group believes such informat ion to be reliable, it has not been independently verif ied by the Group and no representation or warranty is made by the Group as to its quality, completeness, accuracy, ﬁtness for a particular purpose or noninfr ingement of such informat ion; vi i i. for the purposes of the informat ion included in this document, a number of key judgements and assumptions have been made. It is possible that the assumptions drawn, and the judgement exercised may subsequently turn out to be inaccurate. The judgements and data presented in this document are not a substitute for judgements and analysis made independently by the reader; ix. any opin ions or v iews of third parties expressed in this document are those of the third parties ident iﬁed, and not of the Group, its afﬁl iates, d irectors, ofﬁcers, employees or agents. By incorporating or referring to opin ions and v iews of third parties, the Group is not, in any way, endorsing or supporting such opin ions or v iews; x. while the Group bears primary responsib il ity for the informat ion included in this document, it does not accept responsib il ity for the external input provided by any third parties for the purposes of developing the informat ion included in this document; xi. the data contained in this document reﬂects available informat ion and est imates at the relevant time; xi i. where the Group has used any methodology or tools developed by a third party, the applicat ion of the methodology or tools (or consequences of its applicat ion) shall not be interpreted as conﬂict ing w ith any legal or contractual obligat ions and such legal or contractual obligat ions shall take precedence over the appl icat ion of the methodology or tools; xi i i. where the Group has used any underlying data provided or sourced by a third party, the use of the data shall not be interpreted as conﬂict ing w ith any legal or contractual obligat ions and such legal or contractual obl igat ions shall take precedence over the use of the data; xiv. this Important Notice is not lim ited in applicab il ity to those sections of the document where lim itat ions to data, metrics and methodologies are ident iﬁed and where th is Important Notice is referenced. This Important Notice applies to the whole document; xv. further development of reporting, standards or other princ iples could impact the informat ion included in this document or any metrics, data and targets included in this document (it being noted that ESG reporting and standards are subject to rapid change and development); and xvi. while all reasonable care has been taken in preparing the informat ion included in this document, neither the Group nor any of its afﬁl iates, d irectors, ofﬁcers, employees or agents make any representation or warranty as to its quality, accuracy or completeness, and they accept no responsib il ity or liab il ity for the contents of this informat ion, includ ing any errors of fact, om iss ion or opin ion expressed. You are adv ised to exercise your own independent judgement (with the advice of your professional advisers as necessary) with respect to the risks and consequences of any matter contained in this document. The Group, its afﬁl iates, d irectors, ofﬁcers, employees or agents expressly discla im any l iab il ity and responsib il ity for any decis ions or act ions which you may take and for any damage or losses you may suffer from your use of or reliance on the informat ion conta ined in this document. Copyright in all materials, text, articles and informat ion contained in this document (other than third party materials, text, articles and informat ion) is the property of, and may only be reproduced with permiss ion of an author ised signatory of, the Group. Copyright in materials, text, articles and informat ion created by third parties and the rights under copyright of such parties are hereby acknowledged. Copyright in all other materials not belonging to third parties and copyright in these materials as a compilat ion vests and shall rema in at all times copyright of the Group and should not be reproduced or used except for business purposes on behalf of the Group or save with the express prior written consent of an authorised signatory of the Group. All rights reserved. 399 Standard Chartered – Annual Report 2024 Supplementary informat ion Glossary AT1 or Addit ional T ier 1 capital Addit ional T ier 1 capital consists of instruments other than Common Equity Tier 1 that meet the Capital Requirements Regulation (as it forms part of UK domestic law) criter ia for inclus ion in Tier 1 capital. Addit ional value adjustment See Prudent valuation adjustment. Advanced Internal Rating Based (AIRB) approach The AIRB approach under the Basel framework is used to calculate credit risk capital based on the Group’s own estimates of prudential parameters. Alternative performance measures A ﬁnancial measure of h istor ical or future ﬁnancial performance, ﬁnancial posit ion, or cash ﬂows, other than a ﬁnancial measure deﬁned or spec if ied in the applicable ﬁnanc ial report ing framework. ASEAN Associat ion of South East As ian Nations (ASEAN) which includes the Group’s operations in Brunei, Indonesia, Malaysia, Phil ipp ines, Singapore, Thailand and Vietnam. AUM or Assets under management Total market value of assets such as deposits, securit ies and funds held by the Group on behalf of the clients. Basel II The capital adequacy framework issued by the Basel Committee on Banking Supervis ion (BCBS) in June 2006 in the form of the International Convergence of Capital Measurement and Capital Standards. Basel III The global regulatory standards on bank capital adequacy and liqu id ity, orig inally issued in December 2010 and updated in June 2011. In December 2017, the BCBS published a document setting out the ﬁnalisat ion of the Basel III framework. The latest requirements issued in December 2017 have been implemented from 2022. BCBS or Basel Committee on Banking Supervis ion A forum on banking supervisory matters which develops global supervisory standards for the banking industry. Its members are ofﬁcials from 45 central banks or prudential supervisors from 27 countries and territor ies. Basic earnings per share (EPS) Represents earnings div ided by the basic weighted average number of shares. Basis point (bps) One hundredth of a per cent (0.01 per cent); 100 basis points is 1 per cent. CRD or Capital Requirements Direct ive A capital adequacy legislat ive package adopted by the PRA. CRD comprises the Capital Requirements Direct ive and the UK onshored Capital Requirements Regulation (CRR). The package implements the Basel III framework together with transit ional arrangements for some of its requirements. CRD IV came into force on 1 January 2014. The EU CRR II and CRD V amending the exist ing package came into force in June 2019 with most changes starting to apply from 28 June 2021. Only those parts of the EU CRR II that applied on or before 31 December 2020, when the UK was a member of the EU, have been implemented. The PRA recently ﬁnal ised the UK’s version of the CRR II for implementat ion on 1 January 2022. Capital-lite income Income derived from products with low RWA consumption or products which are non-funding in nature. Capital resources Sum of Tier 1 and Tier 2 capital after regulatory adjustments. CGU or Cash-generating unit The smallest ident iﬁable group of assets that generates cash inﬂows that are largely independent of the cash inﬂows from other assets or groups of assets. Cash shortfall The difference between the cash ﬂows that are due in accordance with the contractual terms of the instrument and the cash ﬂows that the Group expects to receive over the contractual life of the instrument. Clawback An amount an ind iv idual is required to pay back to the Group, which has to be returned to the Group under certain circumstances. Commercial real estate Includes ofﬁce build ings, industr ial property, medical centres, hotels, malls, retail stores, shopping centres, farm land, multi-family housing build ings, warehouses, garages, and industr ial properties. Commercial real estate loans are those backed by a package of commercial real estate assets. CET1 or Common Equity Tier 1 capital Common Equity Tier 1 capital consists of the common shares issued by the Group and related share premium, retained earnings, accumulated other comprehensive income and other disclosed reserves, elig ible non- controlling interests and regulatory adjustments required in the calculation of Common Equity Tier 1. CET1 ratio A measure of the Group’s CET1 capital as a percentage of risk-weighted assets. Contractual maturity Contractual maturity refers to the ﬁnal payment date of a loan or other ﬁnancial instrument, at which point all the remain ing outstand ing princ ipal and interest is due to be paid. Countercyclical capital buffer The countercyclical capital buffer (CCyB) is part of a set of macroprudential instruments, designed to help counter procyclical ity in the ﬁnancial system. CCyB as deﬁned in the Basel III standard provides for an addit ional cap ital requirement of up to 2.5 per cent of risk-weighted assets in a given jur isd ict ion. The Bank of England’s Financ ial Pol icy Committee has the power to set the CCyB rate for the United Kingdom. Each bank must calculate its ‘inst itut ion-specif ic’ CCyB rate, deﬁned as the weighted average of the CCyB rates in effect across the jurisd ict ions in which it has credit exposures. The inst itut ion-specif ic CCyB rate is then applied to a bank’s total risk-weighted assets. 400 Standard Chartered – Annual Report 2024 Supplementary informat ion Glossary Counterparty credit risk The risk that a counterparty defaults before satisfy ing its obligat ions under a derivat ive, a secur it ies ﬁnancing transaction (SFT) or a sim ilar contract. CCF or Credit conversion factor An estimate of the amount the Group expects a customer to have drawn further on a facil ity l im it at the po int of default. This is either prescribed by CRR or modelled by the bank. CDS or Credit default swaps A credit derivat ive is an arrangement whereby the credit risk of an asset (the reference asset) is transferred from the buyer to the seller of protection. A credit default swap is a contract where the protection seller receives premium or interest-related payments in return for contracting to make payments to the protection buyer upon a deﬁned credit event. Credit events normally include bankruptcy, payment default on a reference asset or assets, or downgrades by a rating agency. Climate Risk Assessment (CRA) The CRA is an internal assessment conducted on in-scope corporate clients to ident ify cl imate risks, across Physical and Transit ion r isks, that may lead to addit ional cred it risks for the Group. The assessment is conducted across four sections, using Group’s in house methodology as well as client public disclosures. The CRA produces a BRAG score ind icat ing the level of climate risk of an entity and is supported by long-form analysis of the drivers of this score. Credit inst itut ions An inst itut ion whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account. Credit risk mit igat ion Credit risk mit igat ion is a process to mit igate potent ial credit losses from any given account, customer or portfolio by using a range of tools such as collateral, netting agreements, credit insurance, credit derivat ives and guarantees. Credible Transit ion Plan (CTP) A credible climate transit ion plan is a time-bound, action plan that clearly outlines how a company will invest in or pivot exist ing assets, operat ions, and entire business model towards a trajectory that aligns with the most ambit ious cl imate science. CVA or Credit valuation adjustments An adjustment to the fair value of derivat ive contracts that reﬂects the possib il ity that the counterparty may default such that the Group would not receive the full market value of the contracts. Customer accounts Money deposited by all ind iv iduals and companies which are not credit inst itut ions includ ing secur it ies sold under repurchase agreement (see repo/ reverse repo). Such funds are recorded as liab il it ies in the Group’s balance sheet under customer accounts. Days past due One or more days that interest and/or princ ipal payments are overdue based on the contractual terms. DVA or Debit valuation adjustment An adjustment to the fair value of derivat ive contracts that reﬂects the possib il ity that the Group may default and not pay the full market value of contracts. Debt securit ies Debt securit ies are assets on the Group’s balance sheet and represent certif icates of indebtedness of credit inst itut ions, public bodies or other undertakings excluding those issued by central banks. Debt securit ies in issue Debt securit ies in issue are transferable certif icates of indebtedness of the Group to the bearer of the certif icate. These are liab il it ies of the Group and include certif icates of depos its. Deferred tax asset Income taxes recoverable in future periods in respect of deductible temporary differences between the accounting and tax base of an asset or liab il ity that will result in tax deductible amounts in future periods, the carry- forward of tax losses or the carry- forward of unused tax credits. Deferred tax liab il ity Income taxes payable in future periods in respect of taxable temporary differences between the accounting and tax base of an asset or liab il ity that will result in taxable amounts in future periods. Default Financ ial assets in default represent those that are at least 90 days past due in respect of princ ipal or interest and/or where the assets are otherwise considered to be unlikely to pay, includ ing those that are cred it-impa ired. Deﬁned beneﬁt obligat ion The present value of expected future payments required to settle the obligat ions of a deﬁned beneﬁt scheme resulting from employee service. Deﬁned beneﬁt scheme Pension or other post-retirement beneﬁt scheme other than a deﬁned contribut ion scheme. Deﬁned contribut ion scheme A pension or other post-retirement beneﬁt scheme where the employer’s obligat ion is lim ited to its contribut ions to the fund. Delinquency A debt or other ﬁnancial obl igat ion is considered to be in a state of delinquency when payments are overdue. Loans and advances are considered to be delinquent when consecutive payments are missed. Also known as arrears. Deposits by banks Deposits by banks comprise amounts owed to other domestic or foreign credit inst itut ions by the Group includ ing securit ies sold under repo. Diluted earnings per share (EPS) Represents earnings div ided by the weighted average number of shares that would have been outstanding assuming the conversion of all dilut ive potential ordinary shares. Div idend per share Represents the entitlement of each shareholder in the share of the proﬁts of the Company. Calculated in the lowest unit of currency in which the shares are quoted. Early alert, purely and non- purely precautionary A borrower’s account which exhib its r isks or potential weaknesses of a material nature requir ing closer mon itor ing, supervis ion, or attent ion by management. Weaknesses in such a borrower’s account, if left uncorrected, could result in deteriorat ion of repayment prospects and the likel ihood of being downgraded to credit grade 12 or worse. When an account is on early alert, it is classif ied as e ither purely precautionary or non-purely precautionary. A purely precautionary account is one that exhib its early alert characterist ics, but these do not present any imm inent cred it concern. If the symptoms present an imm inent cred it concern, an account will be considered for classif icat ion as non-purely precautionary. 401 Standard Chartered – Annual Report 2024 Supplementary informat ion Effective tax rate The tax on proﬁt/ (losses) on ordinary activ it ies as a percentage of proﬁt/ (loss) on ordinary activ it ies before taxation. Encumbered assets On-balance sheet assets pledged or used as collateral in respect of certain of the Group’s liab il it ies. EU or European Union The European Union (EU) is a polit ical and economic union of 27 member states that are located primar ily in Europe. Eurozone Represents the 19 EU countries that have adopted the euro as their common currency. ECL or Expected credit loss Represents the present value of expected cash shortfalls over the residual term of a ﬁnanc ial asset, undrawn commitment or ﬁnanc ial guarantee. This comprises ECL generated by the models, management judgements and ind iv idually assessed credit impa irment prov is ions. Expected loss The Group measure of antic ipated loss for exposures captured under an internal ratings-based credit risk approach for capital adequacy calculations. It is measured as the Group-modelled view of antic ipated loss based on probabil ity of default, loss given default and exposure at default, with a one-year time horizon. Exposures Credit exposures represent the amount lent to a customer, together with any undrawn commitments. EAD or Exposure at default The estimat ion of the extent to wh ich the Group may be exposed to a customer or counterparty in the event of, and at the time of, that counterparty’s default. At default, the customer may not have drawn the loan fully or may already have repaid some of the princ ipal, so that exposure is typically less than the approved loan lim it. ECAI or External Credit Assessment Institut ion External credit ratings are used to assign risk-weights under the standardised approach for sovereigns, corporates and inst itut ions. The external ratings are from credit rating agencies that are registered or certif ied in accordance with the credit rating agencies regulation or from a central bank issu ing cred it ratings which is exempt from the applicat ion of th is regulation. ESG Environmental, Social and Governance. FCA or Financ ial Conduct Authority The Financ ial Conduct Author ity regulates the conduct of ﬁnancial ﬁrms and, for certain ﬁrms, prudential standards in the UK. It has a strategic objective to ensure that the relevant markets function well. Facil itated Em iss ions Facil itated em iss ions refer to the greenhouse gas emiss ions that result from the facil itat ion of ﬁnanc ial transactions by ﬁnanc ial inst itut ions. Financed Emiss ions Financed emiss ions are the em iss ions attributed to a ﬁnanc ial inst itut ion when ﬁnancing a cl ient. Forborne – not impa ired loans Loans where the contractual terms have been modif ied due to ﬁnancial diff icult ies of the borrower, but the loan is not considered to be impa ired. See ‘Forbearance’. Forbearance Forbearance takes place when a concession is made to the contractual terms of a loan in response to an obligor’s ﬁnanc ial d iff icult ies. The Group classif ies such mod if ied loans as e ither ‘Forborne – not impa ired loans’ or ‘Loans subject to forbearance – impa ired’. Once a loan is categorised as either of these, it will remain in one of these two categories until the loan matures or satisf ies the ‘cur ing’ condit ions descr ibed in Note 8 to the ﬁnanc ial statements. Forborne – not impa ired loans Loans where the contractual terms have been modif ied due to ﬁnancial diff icult ies of the borrower, but the loan is not considered to be impa ired. See ‘Forbearance’. Funded/unfunded exposures Exposures where the notional amount of the transaction is funded or unfunded. Represents exposures where a commitment to provide future funding is made but funds have been released/ not released. FVA or Funding valuation adjustments FVA reﬂects an adjustment to fair value in respect of derivat ive contracts that reﬂects the funding costs that the market partic ipant would incorporate when determin ing an ex it price. G-SIBs or Global Systemically Important Banks Global banking ﬁnanc ial inst itut ions whose size, complexity and systemic interconnectedness mean that their distress or failure would cause sign iﬁcant disrupt ion to the w ider ﬁnanc ial system and economic activ ity. The l ist of G-SIBs is assessed under a framework established by the FSB and the BCBS. In the UK, the G-SIB framework is implemented via the CRD and G-SIBs are referred to as Global Systemically Important Institut ions (G-SIIs). G-SIB buffer A CET1 capital buffer which results from designat ion as a G-SIB. The G-SIB buffer is between 1 per cent and 3.5 per cent, depending on the allocation to one of ﬁve buckets based on the annual scoring. In the UK, the G-SIB buffer is implemented via the CRD as Global Systemically Important Institut ions (G-SII) buffer requirement. Green and Sustainable Product Framework Sets out underlying elig ible qual ify ing themes and activ it ies that may be considered ESG .This has been developed with the support of external experts, has been informed by industry and supervisory princ iples and standards such as the Green Bond Princ iples and EU Taxonomy for sustainable activ it ies. Hong Kong regional hub Standard Chartered Bank (Hong Kong) Lim ited and its subsid iar ies includ ing the primary operating entit ies in China, Korea and Taiwan. Standard Chartered PLC is the ultimate parent company of Standard Chartered Bank (Hong Kong) Lim ited. Interest rate risk The risk of an adverse impact on the Group’s income statement due to changes in interest rates. IRB or internal ratings-based approach Risk-weight ing methodology in accordance with the Basel Capital Accord where capital requirements are based on a ﬁrm’s own estimates of prudential parameters. Internal model approach The approach used to calculate market risk capital and RWA with an internal market risk model approved by the PRA under the terms of CRD/CRR. Supplementary informat ion Glossary 402 Standard Chartered – Annual Report 2024 IAS or International Accounting Standard A standard that forms part of the International Financ ial Report ing Standards framework. IASB or International Accounting Standards Board An independent standard-setting body responsible for the development and publicat ion of IFRS, and approv ing interpretat ions of IFRS standards that are recommended by the IFRS Interpretations Committee (IFRIC). IFRS or International Financ ial Reporting Standards A set of internat ional account ing standards developed and issued by the International Accounting Standards Board, consist ing of pr inc iples-based guidance contained with in IFRSs and IASs. All companies that have issued publicly traded securit ies in the EU are required to prepare annual and inter im reports under IFRS and IAS standards that have been endorsed by the EU. IFRIC The IFRS Interpretations Committee supports the IASB in provid ing authoritat ive gu idance on the accounting treatment of issues not specif ically dealt w ith by exist ing IFRSs and IASs. Investment grade A debt security, treasury bill or sim ilar instrument with a credit rating measured by external agencies of AAA to BBB. Leverage ratio A ratio introduced under CRD IV that compares Tier 1 capital to total exposures, includ ing certa in exposures held off-balance sheet as adjusted by stipulated credit conversion factors. Intended to be a simple, non-risk-based backstop measure. Liqu idat ion portfolio A portfolio of assets which is beyond our current risk appetite metrics and is held for liqu idat ion. LCR or Liqu id ity coverage ratio The ratio of the stock of high-quality liqu id assets to expected net cash outﬂows over the following 30 days. High-quality liqu id assets should be unencumbered, liqu id in markets during a time of stress and, ideally, be central bank elig ible. Loan exposure Loans and advances to customers reported on the balance sheet held at amortised cost or FVOCI, non- cancellable credit commitments and cancellable credit commitments for credit cards and overdraft facil it ies Loans and advances to customers This represents lending made under bilateral agreements with customers entered into in the normal course of business and is based on the legal form of the instrument. Loans and advances to banks Amounts loaned to credit inst itut ions includ ing secur it ies bought under Reverse repo. LTV or loan-to-value ratio A calculation which expresses the amount of a ﬁrst mortgage lien as a percentage of the total appraised value of real property. The loan-to- value ratio is used in determin ing the appropriate level of risk for the loan and therefore the correct price of the loan to the borrower. Loans past due Loans on which payments have been due for up to a maximum of 90 days includ ing those on wh ich partial payments are being made. Loans subject to forbearance – impa ired Loans where the terms have been renegotiated on terms not consistent with current market levels due to ﬁnancial d iff icult ies of the borrower. Loans in this category are necessarily impa ired. See ‘Forbearance’. Loss rate Uses an adjusted gross charge-off rate, developed using monthly write-off and recoveries over the preceding 12 months and total outstanding balances. LGD or Loss given default The percentage of an exposure that a lender expects to lose in the event of obligor default. Low returning clients See ‘Perennial sub-optimal clients’. Malus An arrangement that permits the Group to prevent vesting of all or part of the amount of an unvested variable remuneration award, due to a specif ic crystallised risk, behaviour, conduct or adverse performance outcome. Master netting agreement An agreement between two counterparties that have multiple derivat ive contracts w ith each other that provides for the net settlement of all contracts through a single payment, in a single currency, in the event of default on, or terminat ion of, any one contract. Mezzanine capital Financ ing that comb ines debt and equity characterist ics. For example, a loan that also confers some proﬁt partic ipat ion to the lender. MREL or min imum requ irement for own funds and elig ible liab il it ies A requirement under the Bank Recovery and Resolution Direct ive for EU resolution authorit ies to set a m in imum requirement for own funds and elig ible liab il it ies for banks, implement ing the FSB’s Total Loss Absorbing Capacity (TLAC) standard. MREL is intended to ensure that there is sufﬁc ient equ ity and specif ic types of l iab il it ies to fac il itate an orderly resolution that min im ises any impact on ﬁnanc ial stab il ity and ensures the continu ity of cr it ical funct ions and avoids exposing taxpayers to loss. Net asset value (NAV) per share Ratio of net assets (total assets less total liab il it ies) to the number of ord inary shares outstanding at the end of a reporting period. Net exposure The aggregate of loans and advances to customers/loans and advances to banks after impa irment prov is ions, restricted balances with central banks, derivat ives (net of master nett ing agreements), investment debt and equity securit ies, and letters of cred it and guarantees. Net-zero roadmap Net-zero refers to a condit ion in which human-caused residual greenhouse gas emiss ions (GHG) are balanced by human-led removals over a specif ied period and with in spec if ied boundar ies. Our Net-zero Roadmap refers to the short and medium-term object ives and quantif iable targets the Group has set to achieve net zero carbon emiss ions in our operations by 2025 and in our ﬁnanced emiss ions by 2050. NII or Net interest income The difference between interest received on assets and interest paid on liab il it ies. 403 Standard Chartered – Annual Report 2024 Supplementary informat ion NSFR or Net stable funding ratio The ratio of available stable funding to required stable funding over a one-year time horizon, assuming a stressed scenario. It is a longer-term liqu id ity measure designed to restrain the amount of wholesale borrowing and encourage stable funding over a one-year time horizon. NPLs or non-performing loans An NPL is any loan that is more than 90 days past due or is otherwise ind iv idually impa ired. Th is excludes Retail loans renegotiated at or after 90 days past due, but on which there has been no default in interest or princ ipal payments for more than 180 days since renegotiat ion, and against which no loss of princ ipal is expected. Non-linear ity Non-linear ity of expected cred it loss occurs when the average of expected credit loss for a portfolio is higher than the base case (median) due to the fact that bad economic environment could have a larger impact on ECL calculation than good economic environment. Normalised items See ‘Underlying/Normalised’ on page 56. Operating expenses Staff and premises costs, general and admin istrat ive expenses, depreciat ion and amortisat ion. Underly ing operating expenses exclude expenses as described in ‘Underlying earnings’. A reconcil iat ion between underlying and statutory earnings is contained in Note 2 to the ﬁnancial statements. Operating income or operating proﬁt Net interest, net fee and net trading income, as well as other operating income. Underlying operating income represents the income line items above, on an underlying basis. See ‘Underlying earnings’. OTC or Over-the-counter derivat ives A bilateral transaction (e.g. derivat ives) that is not exchange traded and that is valued using valuation models. OCA or Own credit adjustment An adjustment to the Group’s issued debt designated at fair value through proﬁt or loss that reﬂects the possib il ity that the Group may default and not pay the full market value of the contracts. Perennial sub-optimal clients Clients that have returned below 3% return on risk-weighted assets for the last three years. Physical risks The risk of increased extreme weather events includ ing ﬂood, drought and sea level rise. Pillar 1 The ﬁrst pillar of the three pillars of the Basel framework which provides the approach to calculation of the min imum capital requirements for credit, market and operational risk. Min imum cap ital requirements are 8 per cent of the Group’s risk-weighted assets. Pillar 2 The second pillar of the three pillars of the Basel framework which requires banks to undertake a comprehensive assessment of their risks and to determine the appropriate amounts of capital to be held against these risks where other suitable mit igants are not available. Pillar 3 The third pillar of the three pillars of the Basel framework which aims to provide a consistent and comprehensive disclosure framework that enhances comparabil ity between banks and further promotes improvements in risk practices. Prior ity Bank ing Prior ity Bank ing customers are ind iv iduals who have met certain criter ia for depos its, AUM, mortgage loans or monthly payroll. Criter ia var ies by country. Private equity investments Equity securit ies in operating companies generally not quoted on a public exchange. Investment in private equity often involves the investment of capital in private companies. Capital for private equity investment is raised by retail or inst itut ional investors and used to fund investment strategies such as leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. PD or Probabil ity of default PD is an internal estimate for each borrower grade of the likel ihood that an obligor will default on an obligat ion over a given time horizon. Probabil ity we ighted Obtained by consider ing the values the metric can assume, weighted by the probabil ity of each value occurr ing. Proﬁt/(loss) attributable to ordinary shareholders Proﬁt (loss) for the year after non- controlling interests and div idends declared in respect of preference shares classif ied as equ ity. PVA or Prudent valuation adjustment An adjustment to CET1 capital to reﬂect the difference between fair value and prudent value posit ions, where the applicat ion of prudence results in a lower absolute carrying value than recognised in the ﬁnanc ial statements. PRA or Prudential Regulation Authority The Prudential Regulation Authority is the statutory body responsible for the prudential supervis ion of banks, bu ild ing societ ies, cred it unions, insurers and a small number of sign iﬁcant investment ﬁrms in the UK. The PRA is a part of the Bank of England. Revenue-based carbon intens ity A measurement of the quantity of greenhouse gases emitted by our clients per USD of their revenue. Regulatory consolidat ion The regulatory consolidat ion of Standard Chartered PLC differs from the statutory consolidat ion in that it includes Ascenta IV, Global Dig ital Asset Holdings Lim ited, Olea Global group, Partior Holdings Pte. Ltd., SBI Zodia Custody Co. Ltd, Seychelles International Mercantile Banking Corporation Lim ited., Vault22 Solut ions Holdings Ltd, and all of the legal entit ies in the Currency Fair group on a proportionate consolidat ion bas is. These entit ies are considered associates for statutory accounting purposes. The regulatory consolidat ion further excludes the following entit ies, wh ich are consolidated for statutory accounting purposes; Audax Financ ial Technology Pte. Ltd, Furaha Finserve Uganda Lim ited, Letsbloom Ind ia Private Lim ited, Letsbloom Pte. Ltd., Pegasus Dealmaking Pte. Ltd., PointSource Technologies Pte. Ltd., PT Labamu Sejahtera Indonesia, Qatalyst Pte. Ltd., SCV Research and Development Pte. Ltd., SCV Research and Development Pvt. Ltd., Solv Vietnam Company Lim ited, Solvezy Technology Ghana Ltd, Solvezy Technology Kenya Lim ited, Standard Chartered Assurance Lim ited, Standard Chartered Bancassurance Intermediary Lim ited, Standard Chartered Bank Insurance Agency (Proprietary) Lim ited, Standard Chartered Botswana Education Trust, Standard Chartered Isle of Man Lim ited, TASConnect (Hong Kong) Private Lim ited, TASConnect (Malaysia) Sdn. Bhd., TASConnect (Shanghai) Financ ial Technology Pte. Ltd and Tawi Fresh Kenya Lim ited 404 Standard Chartered – Annual Report 2024 Supplementary informat ion Glossary Repo/reverse repo A repurchase agreement or repo is a short-term funding agreement, which allows a borrower to sell a ﬁnancial asset, such as asset-backed securit ies or government bonds as collateral for cash. As part of the agreement the borrower agrees to repurchase the security at some later date, usually less than 30 days, repaying the proceeds of the loan. For the party on the other end of the transaction (buying the security and agreeing to sell in the future), it is a reverse repurchase agreement or reverse repo. Resident ial mortgage A loan to purchase a resident ial property which is then used as collateral to guarantee repayment of the loan. The borrower gives the lender a lien against the property, and the lender can foreclose on the property if the borrower does not repay the loan per the agreed terms. Also known as a home loan. RoRWA or Return on risk- weighted assets Proﬁt before tax for year as a percentage of RWA. Proﬁt may be statutory or underlying and is specif ied where used. See ‘RWA’ and ‘Underlying earnings’. RWA or Risk-weighted assets A measure of a bank’s assets adjusted for their associated risks, expressed as a percentage of an exposure value in accordance with the applicable standardised or IRB approach provis ions. Risks-not-in-VaR (RNIV) A framework for ident ify ing and quantify ing marg inal types of market risk that are not captured in the Value at Risk (VaR) measure for any reason, such as being a far-tail risk or the necessary histor ical market data not being available. Roll rate Uses a matrix that gives average loan migrat ion rate from del inquency states from period to period. A matrix multipl icat ion is then performed to generate the ﬁnal PDs by delinquency bucket over different time horizons. Scope 1 emiss ions Direct GHG emiss ions that occur from sources owned or controlled by the Group – i.e., emiss ions from combust ion in owned or controlled boilers, furnaces, vehicles, as well as fugit ive em iss ions from pressure contain ing equ ipment at Group locations. Scope 2 emiss ions Indirect GHG emiss ions from the generation of purchased or acquired electric ity, steam, heat ing, or cooling consumed by the Group. Scope 3 emiss ions All ind irect GHG em iss ions (not included in Scope 2) that occur in the value chain of the Group, aris ing from sources not controlled by the Group. This comprises of both upstream and downstream value chain emiss ions and includes absolute ﬁnanced emiss ions. Secured (fully and partially) A secured loan is a loan in which the borrower pledges an asset as collateral for a loan which, in the event that the borrower defaults, the Group is able to take possession of. All secured loans are considered fully secured if the fair value of the collateral is equal to or greater than the loan at the time of orig inat ion. All other secured loans are considered to be partly secured. Securit isat ion Securit isat ion is a process by which credit exposures are aggregated into a pool, which is used to back new securit ies. Under trad it ional securit isat ion transactions, assets are sold to a structured entity which then issues new securit ies to investors at different levels of senior ity (cred it tranching). This allows the credit quality of the assets to be separated from the credit rating of the orig inat ing inst itut ion and transfers risk to external investors in a way that meets their risk appetite. Under synthetic securit isat ion transactions, the transfer of risk is achieved by the use of credit derivat ives or guarantees, and the exposures being securit ised rema in exposures of the orig inat ing inst itut ion. Senior debt Debt that takes prior ity over other unsecured or otherwise more ‘jun ior’ debt owed by the issuer. Senior debt has greater senior ity in the issuer’s capital structure than subordinated debt. In the event the issuer goes bankrupt, senior debt theoretically must be repaid before other creditors receive any payment. SICR or Sign iﬁcant increase in credit risk Assessed by comparing the risk of default of an exposure at the reporting date to the risk of default at orig inat ion (after consider ing the passage of t ime. Solo The solo regulatory group as deﬁned in the Prudential Regulation Authority waiver letter dated 16 September 2024 differs from Standard Chartered Bank Company in that it includes the full consolidat ion of four subs id iar ies, namely Standard Chartered Holdings (International) B.V., Standard Chartered Grindlays PTY Lim ited, SCMB Overseas Lim ited, and Corras i Covered Bonds LLP. Sovereign exposures Exposures to central governments and central government departments, central banks and entit ies owned or guaranteed by the aforementioned. Sovereign exposures, as deﬁned by the European Banking Authority, include only exposures to central governments. Stage 1 Assets have not experienced a sign iﬁcant increase in credit risk since orig inat ion and impa irment recogn ised on the basis of 12 months expected credit losses. Stage 2 Assets have experienced a sign iﬁcant increase in credit risk since orig inat ion and impa irment is recognised on the basis of lifet ime expected cred it losses. Stage 3 Assets that are in default and considered credit-impa ired (non- performing loans). Standardised approach In relation to credit risk, a method for calculating credit risk capital requirements using External Credit Assessment Institut ions (ECAI) rat ings and supervisory risk weights. In relation to operational risk, a method of calculating the operational capital requirement by the applicat ion of a supervisory deﬁned percentage charge to the gross income of eight specif ied business lines. Structured note An investment tool which pays a return linked to the value or level of a specif ied asset or index and sometimes offers capital protection if the value declines. Structured notes can be linked to equit ies, interest rates, funds, commodit ies and fore ign currency. Subordinated liab il it ies Liab il it ies wh ich, in the event of insolvency or liqu idat ion of the issuer, are subordinated to the claims of depositors and other creditors of the issuer. 405 Standard Chartered – Annual Report 2024 Supplementary informat ion Sustainab il ity Aspirat ions Our Sustainab il ity Aspirat ions are consolidated into four overarching long-term goals, each supported by key performance ind icators that we use to measure our progress and outcomes in areas in which we can make a contribut ion to the del ivery of the UN Sustainable Development Goals (SDGs). Sustainable Finance assets Assets from clients whose business activ it ies are aligned with the Sustainab il ity Bond Framework, those generated from transactions for which the use of proceeds will be util ised towards elig ible themes and act iv it ies set out with in the Susta inab il ity Bond Framework, or assets generated through our own lending activ it ies to small and medium sized enterprises (SMEs) in elig ible markets or through our green mortgage offerings as per the criter ia set out in the Sustainab il ity Bond Framework. Sustainable Finance income Income generated from Sustainable Finance products and clients as listed in the Green and Sustainable Product Framework. Addit ional products may be approved throughout the year by the Sustainable Finance Governance Committee. Sustainab il ity Linked Loan Any type of loan instrument for which the economic characterist ics can vary depending on whether the counterparty achieves ambit ious, material and quantif iable predetermined sustainab il ity performance targets (SPTs). Tier 1 capital The sum of Common Equity Tier 1 capital and Addit ional T ier 1 capital. Tier 1 capital ratio Tier 1 capital as a percentage of risk-weighted assets. Tier 2 capital Tier 2 capital comprises qualify ing subordinated liab il it ies and related share premium accounts. TLAC or Total loss absorbing capacity An internat ional standard for TLAC issued by the FSB, which requires G-SIBs to have sufﬁcient loss-absorb ing and recapital isat ion capacity available in resolution, to min im ise impacts on ﬁnancial stab il ity, ma inta in the continu ity of cr it ical funct ions and avoid exposing public funds to loss. Transit ion r isks The risk of ﬁnanc ial impact due to changes in market dynamics or sectoral economics due to governments’ response to climate change, as well as competitors and advancements in technology. UK bank levy A levy that applies to certain UK banks and the UK operations of foreign banks. The levy is payable each year based on a percentage of the chargeable equit ies and l iab il it ies on the Group’s UK tax resident entit ies’ balance sheets. Key exclusions from chargeable equit ies and liab il it ies include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain sovereign debt and liab il it ies subject to nett ing. Unbiased Not overly optim ist ic or pessim ist ic, represents informat ion that is not slanted, weighted, emphasised, de-emphasised or otherwise manipulated to increase the probabil ity that the ﬁnancial informat ion w ill be received favourably or unfavourably by users. Unlikely to pay Indicat ions of unl ikel iness to pay shall include placing the credit obligat ion on non-accrued status; the recognit ion of a specif ic cred it adjustment resulting from a sign iﬁcant perce ived decline in credit quality subsequent to the Group taking on the exposure; selling the credit obligat ion at a mater ial credit-related economic loss; the Group consenting to a distressed restructuring of the credit obligat ion where th is is likely to result in a dim in ished ﬁnanc ial obl igat ion caused by the material forgiveness, or postponement, of princ ipal, interest or, where relevant fees; ﬁling for the obligor’s bankruptcy or a sim ilar order in respect of an obligor’s credit obligat ion to the Group; the obligor has sought or has been placed in bankruptcy or sim ilar protection where this would avoid or delay repayment of a credit obligat ion to the Group. VaR or Value at Risk A quantitat ive measure of market r isk estimat ing the potent ial loss that will not be exceeded in a set time period at a set statist ical conﬁdence level. ViU or Value-in-Use The present value of the future expected cash ﬂows expected to be derived from an asset or CGU. Write-downs After an advance has been ident iﬁed as impa ired and is subject to an impa irment prov is ion, the stage may be reached whereby it is concluded that there is no realist ic prospect of further recovery. Write-downs will occur when, and to the extent that, the whole or part of a debt is considered irrecoverable. XVA The term used to incorporate credit, debit and funding valuation adjustments to the fair value of derivat ive ﬁnancial instruments. See ‘CVA’, ‘DVA’ and ‘FVA’. 406 Standard Chartered – Annual Report 2024 Designed and produced by Friend www.friendstud io.com Printed by Park Communicat ions a cert if ied Carbon Neutral print company. Park works to the EMAS standard and its Environmental Management System is certif ied to ISO 14001. This publicat ion has been manufactured us ing 100% offshore wind electric ity sourced from UK w ind. This is a certif ied cl imate neutral print product for which carbon emiss ions have been calculated and offset by supporting recognised carbon offset projects. The carbon offset projects are audited and certif ied according to internat ional standards and demonstrably reduce emiss ions. The cl imate neutral label includes a unique ID number specif ic to th is product which can be tracked at www.climatepartner. com, giv ing deta ils of the carbon offsetting process includ ing informat ion on the em iss ions volume and the carbon offset project being supported. 100% of the inks used are vegetable oil based, 95% of press chemicals are recycled for further use and, on average 99% of any waste associated with this production will be recycled and the remain ing 1% used to generate energy. This document is printed on Nautilus Superwhite 100% Recycled paper contain ing 100% recycled ﬁbre. The FSC ® label on this product ensures responsible use of the world’s forest resources. © Standard Chartered PLC. All rights reserved. The STANDARD CHARTERED word mark, its logo device and associated product brand names are owned by Standard Chartered PLC and centrally licensed to its operating entit ies. Registered Ofﬁce: 1 Basinghall Avenue, London EC2V 5DD. Telephone +44 (0) 20 7885 8888. Princ ipal place of bus iness in Hong Kong: 32nd Floor, 4-4A Des Voeux Road, Central, Hong Kong. Registered in England No. 966425. LSE stock code: STAN.LN HKSE stock code: 02888 Registrar informat ion UK Computershare Investor Services PLC The Pavil ions Bridgwater Road Bristol, BS99 6ZZ +44 (0)370 702 0138 Hong Kong Computershare Hong Kong Investor Services Lim ited 17M Floor, Hopewell Centre 183 Queen’s Road East Wan Chai Hong Kong computershare.com/hk/investors Chinese translation Computershare Hong Kong Investor Services Lim ited 17M Floor, Hopewell Centre 183 Queen’s Road East Wan Chai Hong Kong Register for electronic communicat ions investorcentre.co.uk Global headquarters Standard Chartered Group 1 Basinghall Avenue London, EC2V 5DD United Kingdom +44 (0)20 7885 8888 Shareholder enquir ies ShareCare informat ion sc.com/sharecare +44 (0)370 702 0138 ShareGift informat ion ShareGift.org +44 (0)20 7930 3737 Dig ital Annual Report sc.com/annualreport

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