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Standard Chartered PLC Audit Report / Information 2025

Feb 24, 2026

4648_rns_2026-02-24_87a056a4-3e47-4ed3-b6f6-c4fb3f5dea8c.pdf

Audit Report / Information

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Pillar 3 Disclosures Report 2025

Incorporated in England and Wales with registered number 966425 Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, England

Contents

1. Introduction

2. Capital

3. Credit risk

4. Traded risk

5. Operational risk

6. Interest rate risk in the banking book

7. Liquidity risk

112 7.1 Encumbered and unencumbered assets

8. Remuneration

9. Forward looking statements

Annex 1 Standard Chartered Significant Subsidiaries

Tables

Contents

Contents

Standard Chartered Bank is headquartered in London where it is authorised by the UK's Prudential Regulation Authority (PRA), and Standard Chartered PLC Group and Standard Chartered Bank are regulated by the Financial Conduct Authority (FCA) and the PRA. Within this document 'the Group' refers to Standard Chartered PLC together with its subsidiary undertakings. Unless the context requires, within this document, 'China' refers to the People's Republic of China and, for the purposes of this document only, excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to the Republic of Korea. Greater China & North Asia (GCNA) includes China, Hong Kong, Japan, Korea, Macau and Taiwan; ASEAN & South Asia (ASA) includes Australia, Bangladesh, Brunei, Cambodia, India, Indonesia, Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka, Thailand and Vietnam; and Africa & Middle East (AME) includes Bahrain, Egypt, Iraq, Jordan, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia and the United Arab Emirates (UAE). Throughout this document unless specified the disclosures are at Group level. Throughout this document, unless another currency is specified, the word 'dollar' or symbol \$ means United States dollar. Throughout this document IRB refers to internal ratings based models. The Group does not use the Foundation IRB approach.

Standard Chartered | Pillar 3 Disclosures Report B

1. Introduction

1.1 Purpose and basis of preparation

The Pillar 3 disclosures comprise information on the underlying drivers of risk-weighted assets (RWA), capital, leverage and liquidity ratios as at 31 December 2025 in accordance with the United Kingdom's (UK) onshored Capital Requirements Regulation (CRR) and the Prudential Regulation Authority's (PRA) Rulebook.

The disclosures have been prepared in line with the disclosure templates introduced by the PRA Policy Statement PS22/21 'Implementation of Basel standards: Final rules published in October 2021.

This report presents the annual Pillar 3 disclosures of Standard Chartered PLC ('the Group') as at 31 December 2025 and should be read in conjunction with the Group's Annual Report and Accounts.

The information presented in this Pillar 3 report is not required to be, and has not been, subjected to external audit.

1.2 Highlights

  • The Group's capital and leverage position is managed within the Board-approved risk appetite. The Group is well capitalised with low leverage and high levels of lossabsorbing capacity
  • The Group is well capitalised with a Common Equity Tier 1 (CET1) ratio of 14.1 per cent, well ahead of the current requirement of 10.3 per cent
  • The Group is not highly leveraged and its leverage ratio of 4.7 per cent is well ahead of the current leverage requirement of 3.7 per cent
  • The Group continues to manage its balance sheet proactively, with a particular focus on the efficient management of RWA

RWA by risk type 2025 \$million RWA by risk type 2024 \$million

1.3 Key prudential metrics Table 1: Key metrics template (UK KM1)

31.12.25
\$million		 30.09.25
\$million		 30.06.25
\$million		 31.03.25
\$million		 31.12.24
\$million
Available own funds
1 Common Equity Tier 1 (CET1) capital 36,440 36,594 37,260 35,122 35,190
2 Tier 1 capital 43,949 43,109 43,777 42,629 41,672
3 Total capital 53,227 52,531 53,281 53,111 53,091
Risk-weighted exposure amounts
4 Total risk-weighted exposure amount 258,031 258,378 259,684 253,596 247,065
Risk-based capital ratios as a percentage of
RWA
5 Common Equity Tier 1 ratio 14.1% 14.2% 14.3% 13.8% 14.2%
6 Tier 1 ratio 17.0% 16.7% 16.9% 16.8% 16.9%
7 Total capital ratio 20.6% 20.3% 20.5% 20.9% 21.5%
Additional CET1 buffer requirements as a
percentage of RWA
8 Capital conservation buffer 2.50% 2.50% 2.50% 2.50% 2.50%
9 Institution specific countercyclical capital buffer 0.38% 0.37% 0.38% 0.37% 0.37%
10 Global Systemically Important Institution buffer 1.00% 1.00% 1.00% 1.00% 1.00%
11 Combined buffer requirement 3.88% 3.87% 3.88% 3.87% 3.87%
UK 11a Overall capital requirements 10.26% 10.25% 10.48% 10.48% 10.48%
12 CET1 available after meeting the total SREP
own funds requirements		 7.74% 7.78% 7.75% 7.25% 7.64%
UK leverage ratio
13 Leverage ratio total exposure measure 938,190 936,824 933,234 909,072 868,344
14 Leverage ratio 4.7% 4.6% 4.7% 4.7% 4.8%
Additional leverage ratio disclosure
requirements
14a Fully loaded ECL accounting model leverage
ratio excluding claims on central banks (%)		 4.7% 4.6% 4.7% 4.7% 4.8%
14b Leverage ratio including claims on central
banks (%)		 4.3% 4.2% 4.2% 4.3% 4.4%
14c Average leverage ratio excluding claims on
central banks (%)		 4.6% 4.6% 4.6% 4.6% 4.7%
14d Average leverage ratio including claims on
central banks (%)		 4.2% 4.1% 4.2% 4.2% 4.2%
14e Countercyclical leverage ratio buffer (%) 0.1% 0.1% 0.1% 0.1% 0.1%
Liquidity Coverage Ratio
15 Total high-quality liquid assets (HQLA)
(Weighted value – average)		 185,262 182,646 180,147 177,586 178,676
UK 16a Cash outflows – Total weighted value 193,861 191,877 190,919 187,301 185,890
UK 16b Cash inflows – Total weighted value 74,049 71,495 69,800 68,352 66,896
16 Total net cash outflows (adjusted value) 119,812 120,381 121,119 118,948 118,995
17 Liquidity coverage ratio 154.8% 151.9% 148.8% 149.4% 150.3%
Net Stable Funding Ratio
18 Total available stable funding 464,406 450,956 439,809 426,699 417,658
19 Total required stable funding 335,158 324,273 319,956 314,036 308,948
20 NSFR ratio (%) 138.6% 139.0% 137.5% 135.9% 135.2%

1.3 Key prudential metrics continued

Table 2 shows information about the Group's total loss-absorbing capacity (TLAC) available, and TLAC requirements, applied at the resolution group level under a Single Point of Entry resolution strategy.

Table 2: Key metrics – TLAC requirements (KM2)

31.12.25
\$million		 30.09.25
\$million		 30.06.25
\$million		 31.03.25
\$million		 31.12.24
\$million
Resolution group
Total loss-absorbing capacity (TLAC) available 86,461 88,130 86,574 85,180 84,563
Total RWA at the level of the resolution group 258,031 258,378 259,684 253,596 247,065
TLAC as a percentage of RWA 33.5% 34.1% 33.3% 33.6% 34.2%
UK Leverage ratio exposure measure at the level of the
resolution group		 938,190 936,824 933,234 909,072 868,344
TLAC as a percentage of UK Leverage exposure measure 9.2% 9.4% 9.3% 9.4% 9.7%
Does the subordination exemption in the
antepenultimate paragraph of Section 11 of the FSB TLAC
Term Sheet apply?		 Yes Yes Yes Yes Yes
Does the subordination exemption in the penultimate
paragraph of Section 11 of the FSB TLAC Term Sheet apply?		 No No No No No
If the capped subordination exemption applies, the
amount of funding issued that ranks pari passu with
Excluded Liabilities and that is recognised as external
TLAC, divided by funding issued that ranks pari passu
with Excluded Liabilities and that would be recognised as
external TLAC if no cap was applied (%)		 N/A N/A N/A N/A N/A

1.4 Regulatory disclosure framework

The Group complies with the Basel III framework as implemented in the United Kingdom. The Basel III framework is built on the three pillars of the Basel II framework.

Pillar 1: Sets the minimum capital requirements for credit risk, market risk and operational risk

Pillar 2: Considers through the Supervisory Review and Evaluation Process whether further capital is required in addition to Pillar 1 calculations

Pillar 3: Aims to provide a consistent and comprehensive disclosure framework that enhances comparability between banks and further promotes improvements in risk management. Pillar 3 requires all material risks to be disclosed, enabling a comprehensive view of the bank's risk profile

The Pillar 3 Disclosures 2025 comprise all information required to be included in the UK and are prepared at the Group consolidated level. Where disclosure has been withheld as proprietary or non-material, as permitted by the rules, appropriate comment has been included. It is the Group's intention that the Pillar 3 Disclosures be viewed as an integral, albeit separately reported, element of the Annual Report and Accounts. The Group considers a number of factors in determining where disclosure is made between the Annual Report and Accounts and Pillar 3, including International Financial Reporting Standards (IFRS), regulatory requirements and industry best practice. Pages 176 to 177 of this document provide a summary of differences and cross references between the Annual Report and Accounts and the Pillar 3 Disclosures.

Remuneration

The qualitative Pillar 3 remuneration disclosures for the 2025 performance year are set out on pages 182 to 208 of the Directors' remuneration report in the 2025 Annual Report and Accounts. Information is provided on the key components of our remuneration approach and how we develop our approach. The disclosures follow the requirements set out in Part 8 of the CRR and the Basel Committee on Banking Supervision (BCBS) standards issued in March 2017.

G-SIB

The Group has been identified as a Global Systemically Important Bank (G-SIB) by the Financial Stability Board (FSB) since November 2012. The Group's score from the BCBS's methodology for assessing and identifying G-SIBs has resulted in an additional loss-absorbency requirement of 1 per cent of CET1. The EU's Capital Requirements Directive (CRD) mandates the Group to publicly disclose the value of its Global Systemically Important Institution (G-SII) indicators on an annual basis. The terms 'G-SIB' and 'G-SII' are interchangeable – 'G-SIB' is used by the FSB and Basel Committee, whereas CRD refers to 'G-SII'. The Standard Chartered PLC 2025 G-SII disclosure is published on: https://www.sc.com/en/investors/financial-results/.

1.4 Regulatory disclosure framework continued

Frequency

In accordance with Group policy the Pillar 3 Disclosures are made quarterly as at 31 March, 30 June, 30 September and 31 December in line with Article 432 of the CRR. Disclosures are published on the Standard Chartered PLC website aligning with the publication date of the Group's Interim, Half Year and Annual Report and Accounts.

Verification

Whilst the Pillar 3 Disclosures 2025 are not required to be externally audited, the document has been verified internally in accordance with the Group's policies on disclosure and its financial reporting and governance processes. Controls comparable to those for the 2025 Annual Report and Accounts have been applied to confirm compliance with PRA regulations.

  • Items excluded on the grounds of materiality:
  • Quantitative disclosures of non-deducted participations in insurance undertakings and Collateral obtained by taking possession and execution processes
  • Qualitative and quantitative disclosures on exposures to equities not included in the trading book

1.5 Risk management

Effective risk management is essential in delivering consistent and sustainable performance for all our stakeholders and is a central part of the financial and operational management of the Group. The Group adds value to clients and the communities 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 maximising risk-adjusted returns while remaining within our Risk Appetite (RA). RA is defined by the Group and approved by the Board. It is the boundary for the risk that the Group is willing to undertake to achieve its strategic objectives and corporate plan. We set RA to enable us to grow sustainably while managing our risks, giving confidence to our stakeholders. The Group RA is supplemented by risk control tools such as granular level limits, policies, and standards to maintain the Group's risk profile within approved RA.

The ERMF is complemented by frameworks, policies and standards which are mainly aligned to the Principal Risk Types (PRTs), and is embedded across the Group, including its branches and subsidiaries. PRTs are those risks that are inherent in our strategy and business model and have been formally defined in the Group's ERMF.

In the Risk Management Approach section of the 2025 Annual Report and Accounts, we outline our approach and strategy for managing risks. We discuss our risk management practices, monitoring and mitigation, and governance in relation to our main activities and significant risks.

The Group defines nine PRTs in its ERMF:

  • Credit Risk (refer to section Credit Risk in pages 226 to 226 of the 2025 Annual Report and Accounts)
  • Traded Risk (refer to section Traded Risk on pages 227 to 229 of the 2025 Annual Report and Accounts)
  • Treasury Risk (refer to section Treasury Risk on pages 228 to 229 of the 2025 Annual Report and Accounts)
  • Operational and Technology Risk (refer to section Operational and Technology Risk on page 286 of the 2025 Annual Report and Accounts)
  • Information and Cyber Security Risk (refer to section Information and Cyber Security Risk on page 230 of the 2025 Annual Report and Accounts)
  • Financial Crime Risk (refer to section Financial Crime Risk on page 230 of the 2025 Annual Report and Accounts)
  • Compliance Risk (refer to section Compliance Risk on page 231 of the 2025 Annual Report and Accounts)
  • Environmental, Social and Governance and Reputational (ESGR) Risk (refer to section ESGR Risk on page 231 of the 2025 Annual Report and Accounts)
  • Model Risk (refer to section Model Risk on page 232 of the 2025 Annual Report and Accounts)

Credit Risk

Credit risk is the potential for loss due to the failure of a counterparty to meet its obligations to pay the Group. Credit exposures arise from both the banking and trading books.

Credit risk is managed through a framework that sets out policies and procedures covering the measurement and management of credit risk. The Credit Risk Function, as a second line control function, performs independent challenge, monitoring and oversight of the credit risk management practices of the Business and Functions engaged in or supporting revenue generating activities which constitute the First Line of defence. Credit exposure limits are approved within a defined credit approval authority framework.

The Group manages its credit exposures following the principle of diversification across products, geographies, client segments and industry sectors.

The Group uses the Advanced Internal Ratings Based (IRB) approach to calculate credit risk capital requirements with the approval of our relevant regulators. This approach builds on the Group's risk management practices and is the result of a continuing investment in data warehouses and risk models.

1.5 Risk management continued

For portfolios where the Group does not have IRB approval, or where the exposures are permanently exempt from the IRB approach, the Standardised Approach (SA) is used.

Refer to Credit Risk (pages 226 to 227) in the 2025 Annual Report and Accounts where we describe the main components of credit risk management, including our credit risk profile, credit risk measurement and policies set in line with risk appetite. For the scope and main content of reporting to senior management, refer to page 226 in the 2025 Annual Report and Accounts.

Traded Risk

Market Risk is the potential for fair value loss due to adverse moves in financial markets. The Group's exposure to Market Risk arises predominantly from the following sources:

Trading book:

• The Group provides clients access to markets, facilitation of which entails the Group taking moderate Market Risk positions. All trading teams support client activity. There are no proprietary trading teams. Hence, income earned from Market risk-related activities is primarily driven by the volume of client activity

Non-trading book:

  • Treasury is required to hold a liquid assets buffer, much of which is held in high-quality marketable debt securities
  • The Group underwrites and sells down loans, and invests in select investment grade debt securities with no trading intent

1.6 Accounting and regulatory consolidation

The Pillar 3 Disclosures are prepared at the Group consolidated level. The accounting policy for financial consolidation is provided in the notes to the financial statements in the 2025 Annual Report and Accounts. All banking subsidiaries are fully consolidated for both regulatory and accounting purposes. For associates and joint ventures, the regulatory treatment may differ from the accounting policy, which applies the equity accounting method.

The regulatory consolidation approaches used by the Group are shown in the following table, which identifies the principal undertakings, including investments, associates and joint ventures, which are all principally engaged in the business of banking and provision of other financial services.

Type Description Regulatory consolidation Principal undertakings within each category
Investment
(non
significant)		 The Group holds no more than 10
per cent of the issued share
capital		 The Group risk-weights the
investment subject to the CRD
threshold calculation		 –
Associate The Group holds more than
10 per cent and less than 20 per
cent of the issued share capital		 The Group risk-weights the
investment subject to the CRD
threshold calculation		 China Bohai Bank
Joint
Venture		 The Group enters into a
contractual arrangement
to exercise joint control over an
undertaking		 Where the Group's liability to
the joint venture is greater than
the capital held, full
consolidation is undertaken.
Otherwise joint ventures are
proportionately consolidated		 Olea Global Pte. Ltd
CurrencyFair Limited Exchange Ireland
Subsidiary The Group holds more than
50 per cent of the issued share
capital of a financial entity		 The Group fully consolidates the
undertaking		 Standard Chartered Bank
Standard Chartered Bank Korea Limited
Standard Chartered Bank Malaysia Berhad
Standard Chartered Bank (Pakistan) Limited
Standard Chartered Bank (Taiwan) Limited
Standard Chartered Bank (Hong Kong) Limited
Standard Chartered Bank (China) Limited
Standard Chartered Bank (Singapore) Limited
Standard Chartered Bank (Thai) Public
Company Limited
Standard Chartered Bank Nigeria Limited
Standard Chartered Bank Kenya Limited
Standard Chartered Private Equity Managers
(Hong Kong) Limited
Excluded
entities		 Insurance or corporate entities
excluded from the scope of
banking prudential consolidation		 The Group risk-weights the
investment subject to the CRD
threshold calculation		 Standard Chartered Assurance Ltd
Standard Chartered Insurance Ltd

Table 3: Regulatory consolidation

1.6 Accounting and regulatory consolidation continued Table 4: Outline of the differences in the scopes of consolidation (UK LI3)

2025
Method of regulatory consolidation
Name of the entity Description of
the entity		 Method of accounting
consolidation		 Full
consolidation		 Proportional
consolidation		 Neither
consolidated nor
deducted		 Deducted
Standard Chartered Assurance Ltd Insurance entity Full consolidation
Standard Chartered Insurance Ltd Insurance entity Full consolidation

1.7 Significant subsidiaries

Under Part 2, rule 2.3 of the CRR requires the application of disclosure requirements of Large subsidiaries of UK parent institutions, UK parent financial holding companies.

These subsidiaries are Standard Chartered – solo consolidated, a UK regulated banking entity, Standard Chartered Bank (Hong Kong) Limited (regulated by the Hong Kong Monetary Authority), Standard Chartered Bank Korea Limited (regulated by the Financial Supervisory Service (FSS) in Korea), and Standard Chartered Bank (Singapore) Limited (regulated by the Monetary Authority of Singapore).

The capital resources of these subsidiaries are calculated in accordance with the regulatory requirements applicable in the countries in which they are incorporated, and therefore cannot be aggregated, but are presented to align with the Group format.

Annex 1 provides a summary of the disclosure for the significant subsidiaries.

1.8 Comparison of accounting balance sheet and exposure at default

The differences between the financial and prudential consolidated balance sheets arise primarily from differences in the basis of consolidation and the requirement to not consolidate for prudential purposes insurance entities which are subject to full consolidation for financial purposes.

Table 5 splits the regulatory balance sheet measured under IFRS into each regulatory risk category. The regulatory risk category drives the approach applied in the calculation of regulatory exposures and RWA.

1.8 Comparison of accounting balance sheet and exposure at default continued

Table 5: Differences between accounting and regulatory scopes of consolidation and the mapping of financial statement categories with regulatory risk categories (UK LI1)

2025
Carrying
values as
reported in
published
financial
statements
\$million		 Carrying
values under
the scope of
regulatory
consoli
dation
\$million		 Subject to the
credit risk
framework
\$million		 Subject
to the CCR
framework
\$million		 Subject to the
securitisation
framework
\$million		 Subject to the
market risk
framework
\$million		 Not subject
to own funds
requirements
or subject to
deduction
from own
funds
\$million
Assets
Cash and balances at central banks 77,746 77,816 77,816 – – – –
Financial assets held at fair value through profit
or loss 195,257 195,253 15,339 170,834 1,424 179,918 –
Derivative financial instruments 65,782 65,782 – 65,782 – 65,782 –
Loans and advances to banks 43,901 43,901 43,901 – – 730 –
Loans and advances to customers 286,788 286,788 258,885 9,548 18,182 9,548 –
Investment securities 166,956 168,743 107,671 47,128 13,944 67,054 –
Other assets 67,931 68,172 40,422 27,750 – 30,766 –
Current tax assets 574 573 573 – – – –
Prepayments and accrued income 3,058 3,064 3,064 – – – –
Interests in associates and joint ventures 1,426 1,486 1,486 – – – –
Goodwill and intangible assets 6,231 6,263 – – – – 6,263
Property, plant and equipment 2,559 2,558 2,558 – – – –
Deferred tax assets 493 493 473 – – – 20
Retirement benefit schemes in surplus 154 154 154 – – – –
Asset classified as held for sale 1,099 1,099 1,099 – – – –
Total assets 919,955 922,145 553,441 321,041 33,551 353,797 6,283
Liabilities
Deposits by banks 30,846 30,846 – – – – 30,846
Customer accounts 530,161 530,161 – – – – 530,161
Repurchase agreements and other similar secured
borrowing 7,757 7,757 – 7,757 – – –
Financial liabilities held at fair value through profit
or loss 89,597 89,597 – 68,965 – – 20,632
Derivative financial instruments 68,204 68,204 – 68,204 – 68,204 –
Debt securities in issue 72,858 72,858 – – – – 72,858
Other liabilities 46,655 48,911 6,448 15,539 – 15,539 33,372
Current tax liabilities 709 705 – – – – 705
Accruals and deferred income 7,358 7,237 – – – – 7,237
Subordinated liabilities and other borrowed funds 8,834 8,834 – – – – 8,834
Of which: considered as Additional Tier 1 capital – – – – – – –
Of which: considered as Tier 2 capital 8,834 8,834 – – – – 8,834
Deferred tax liabilities 752 752 – – – – 752
Provisions for liabilities and charges 401 401 – – – – 401
Retirement benefit obligation 323 323 – – – – –
Liabilities included in disposal groups held for sale 914 914 – – – – –
Total liabilities 865,369 867,500 6,448 160,465 – 83,743 705,798
Equity
Share capital and share premium account 6,614 6,614 – – – – –
Other reserves & retained earnings 39,979 40,034 – – – – –
Total parent company shareholders' equity 46,593 46,648 – – – – –
Other equity instruments 7,528 7,529 – – – – –
Total equity excluding non-controlling interests 54,121 54,177 – – – – –
Non-controlling interest 465 468 – – – – –
Total equity 54,586 54,645 – – – – –
Total equity and liabilities 919,955 922,145 6,448 160,465 – 83,743 705,798

1.8 Comparison of accounting balance sheet and exposure at default continued Table 5: Differences between accounting and regulatory scopes of consolidation and the mapping of financial statement categories with regulatory risk categories (UK LI1) continued

2024
Carrying
values as
reported in
published
financial
statements
\$million		 Carrying
values under
the scope of
regulatory
consoli
dation
\$million		 Subject to the
credit risk
framework
\$million		 Subject
to the CCR
framework
\$million		 Subject to the
securitisation
framework
\$million		 Subject to the
market risk
framework
\$million		 Not subject
to own funds
requirements
or subject to
deduction
from own
funds
\$million
Assets
Cash and balances at central banks 63,447 63,500 63,500 – – – –
Financial assets held at fair value through profit
or loss 177,517 177,515 9,297 162,734 824 168,220 –
Derivative financial instruments 81,472 81,472 – 81,472 – 81,472 –
Loans and advances to banks 43,593 43,593 43,593 – – 4,852 –
Loans and advances to customers 281,032 281,032 255,773 5,247 18,335 5,247 –
Investment securities 144,556 145,568 111,267 20,634 13,668 44,502 –
Other assets 43,468 43,794 34,446 9,348 – 8,479 –
Current tax assets 663 663 663 – – – –
Prepayments and accrued income 3,207 3,209 3,209 – – – –
Interests in associates and joint ventures 1,020 996 996 – – – –
Goodwill and intangible assets 5,791 5,814 – – – – 5,814
Property, plant and equipment 2,425 2,424 2,424 – – – –
Deferred tax assets 414 414 315 – – – 99
Retirement benefit schemes in surplus 151 151 151 – – – –
Asset classified as held for sale 932 932 932 – – – –
Total assets 849,688 851,077 526,566 279,434 32,827 312,773 5,913
Liabilities
Deposits by banks 25,400 25,400 – – – – 25,400
Customer accounts 464,489 464,489 – – – – 464,489
Repurchase agreements and other similar secured
borrowing 12,132 12,132 – 12,132 – – –
Financial liabilities held at fair value through profit
or loss 85,462 85,462 – 66,307 – – 19,155
Derivative financial instruments 82,064 82,064 – 82,064 – 82,064 –
Debt securities in issue 64,609 64,609 – – – – 64,609
Other liabilities 44,681 46,148 6,550 14,527 – 14,527 31,621
Current tax liabilities 726 727 – – – – 727
Accruals and deferred income 6,896 6,768 – – – – 6,768
Subordinated liabilities and other borrowed funds 10,382 10,382 – – – – 10,382
Of which: considered as Additional Tier 1 capital – – – – – – –
Of which: considered as Tier 2 capital 10,382 10,382 – – – – 10,382
Deferred tax liabilities 567 567 – – – – 567
Provisions for liabilities and charges 349 349 – – – – 349
Retirement benefit obligation 266 266 – – – – –
Liabilities included in disposal groups held for sale 381 381 – – – – –
Total liabilities 798,404 799,744 6,550 175,030 – 96,591 624,067
Equity – – – – – – –
Share capital and share premium account 6,695 6,695 – – – – –
Other reserves & retained earnings 37,693 37,745 – – – – –
Total parent company shareholders' equity 44,388 44,440 – – – – –
Other equity instruments 6,502 6,502 – – – – –
Total equity excluding non-controlling interests 50,890 50,942 – – – – –
Non-controlling interest 394 391 – – – – –
Total equity 51,284 51,333 – – – – –
Total equity and liabilities 849,688 851,077 6,550 175,030 – 96,591 624,067

1.8 Comparison of accounting balance sheet and exposure at default continued

Table 6 shows the effect of regulatory adjustments required to derive the Group's exposure at default (EAD) for the purposes of calculating its credit risk capital requirements. The differences between the carrying values under regulatory scope of consolidation and amounts considered for regulatory purposes shown in Table 6 are mainly due to derivatives netting benefits, provisions, collateral and off-balance sheet exposures. The standardised credit risk before and after the effect of CRM is presented in Table 68; standardised credit and counterparty credit risk by risk weight is presented in Tables 71 and 88 and IRB credit and counterparty credit risk before and after the effect of Credit Risk Mitigation (CRM) is presented in Table 51. Information on the standardised and IRB counterparty credit risk exposures can be found in section 4.2. Further detail on the EAD under the securitisation framework can be found in Tables 72 and 73.

Table 6: Main sources of differences between regulatory exposure amounts and carrying values in financial statements (UK LI2)

2025
Subject to the
credit risk
framework
\$million		 Subject
to the CCR
framework
\$million		 Subject
to Securitisation
framework
\$million		 Subject
to Market risk
framework
\$million
1 Assets carrying value amount under the scope of regulatory
consolidation (as per template LI1)		 553,441 321,041 33,551 353,797
2 Liabilities carrying value amount under the regulatory scope of
consolidation (as per template LI1)		 6,448 160,465 – 83,743
3 Total net amount under the regulatory scope of consolidation 546,993 160,577 33,551 270,054
4 Off-balance-sheet amounts 108,243 – – –
5 Differences in valuations – 81,336 – –
6 Differences due to different netting rules, other than those
already included in row 2		 – – – –
7 Differences due to consideration of provisions 4,153 – – –
8 Differences due to the use of credit risk mitigation techniques
(CRMs)		 1,012 126,701 1,565 –
9 Differences due to credit conversion factors – – – –
10 Differences due to Securitisation with risk transfer – 10,114 – –
11 Other differences 443 (836) (1) –
12 Regulatory exposure at default pre credit risk mitigation 660,844 377,892 35,115 270,054
2024
Subject to the
credit risk
framework
\$million		 Subject
to the CCR
framework
\$million		 Subject
to Securitisation
framework
\$million		 Subject
to Market risk
framework
\$million
1 Assets carrying value amount under the scope of regulatory
consolidation (as per template LI1)		 526,566 279,434 32,827 312,773
2 Liabilities carrying value amount under the regulatory scope of
consolidation (as per template LI1)		 6,550 175,030 – 96,591
3 Total net amount under the regulatory scope of consolidation 520,016 104,404 32,827 216,182
4 Off-balance-sheet amounts 101,055 – –
5 Differences in valuations – 79,094 –
6 Differences due to different netting rules, other than those
already included in row 2		 – – –
7 Differences due to consideration of provisions 4,579 – –
8 Differences due to the use of credit risk mitigation techniques
(CRMs)		 883 106,339 1,498
9 Differences due to credit conversion factors – – –
10 Differences due to Securitisation with risk transfer – 31,479 –
11 Other differences (657) 133 (1)
12 Regulatory exposure at default pre credit risk mitigation 625,877 321,449 34,324 216,182

1.8 Comparison of accounting balance sheet and exposure at default continued

The CRR provisions on prudential valuation require banks to quantify several valuation uncertainties pertaining to the valuation of assets and liabilities recorded at fair value for accounting purposes. The amounts by which the resulting Prudent Valuation Adjustments (PVA) exceed any associated Fair Value Adjustments are referred to as the Additional Valuation Adjustments (AVAs) and their aggregate is deducted from CET1 capital. AVAs arise from uncertainties related to market prices, close-out costs, model risk, concentrated positions, future administrative costs, early terminations and operational risks.

Table 7: Prudent valuation adjustments (PVA) (UK PV1)

2025
Risk category Category level AVA –
Valuation uncertainty
Equity
\$millions		 Interest rates
\$millions		 FX
\$millions		 Credit
\$millions		 Commodities
\$millions		 Unearned
credit spreads
AVA
\$millions		 Investment
and funding
costs AVA
\$millions		 Total
category level
\$millions		 Of which:
Total core
approach in
the trading
book
\$millions		 Of which:
Total core
approach in
the banking
book
\$millions
1 Market price uncertainty 35.7 101.8 16.0 47.9 18.2 23.3 0.7 243.6 152.9 90.7
3 Close-out cost 1.5 111.4 7.1 6.6 6.7 1.3 0.7 135.4 102.9 32.5
4 Concentrated positions 111.7 41.9 4.8 60.2 2.7 – – 221.3 14.0 207.3
5 Early termination – – – – – – – – – –
6 Model risk 0.0 12.7 0.0 0.6 0.6 0.6 – 14.5 14.5 –
7 Operational risk 3.7 25.3 2.3 5.7 1.9 2.5 0.1 41.6 26.6 15.0
10 Future administrative costs 3.7 3.1 0.7 29.0 0.2 – – 36.7 32.8 4.0
12 Total Additional Valuation
Adjustments (AVAs)		 693.2 343.8 349.4
2024
Risk category Category level AVA –
Valuation uncertainty
Equity
\$millions		 Interest rates
\$millions		 FX
\$millions		 Credit
\$millions		 Commodities
\$millions		 Unearned
credit spreads
AVA
\$millions		 Investment
and funding
costs AVA
\$millions		 Total
category level
\$millions		 Of which:
Total core
approach in
the trading
book
\$millions		 Of which:
Total core
approach in
the banking
book
\$millions
1 Market price uncertainty 35.9 115.2 20.1 53.4 11.3 30.3 2.3 268.5 168.3 100.2
3 Close-out cost 2.3 87.4 3.6 4.0 6.0 1.2 0.7 105.3 77.9 27.4
4 Concentrated positions 63.8 74.9 3.8 32.4 2.9 – – 177.9 58.2 119.7
5 Early termination – – – – – – – – – –
6 Model risk 0.0 9.4 0.1 0.5 0.1 1.0 – 11.1 11.1 –
7 Operational risk 3.8 20.6 4.0 4.7 1.7 3.1 0.3 38.3 26.2 12.1
10 Future administrative costs 0.8 2.6 0.3 18.7 0.1 – – 22.4 21.7 0.7
12 Total Additional Valuation
Adjustments (AVAs)		 623.5 363.4 260.1

2. Capital

2.1 Capital management

The Group's capital, leverage and Minimum Requirements for own funds and Eligible Liabilities (MREL) positions are managed within the Board-approved risk appetite. The Group is well capitalised with low leverage and high levels of lossabsorbing capacity.

The Risk management approach section of the 2025 Annual Report and Accounts sets out our approach to capital management (pages 222 to 234).

2.2 Capital resources

All capital instruments included in the capital base meet the requirements set out in the CRR for their respective tier of capital.

For regulatory purposes, capital is categorised into two tiers, depending on the degree of permanence and loss-absorbency exhibited. These are Tier 1 and Tier 2 capital which are described below.

Tier 1 capital

  • Tier 1 capital is going concern capital and is available for use to cover risks and losses whilst enabling the organisation to continue trading
  • Tier 1 capital comprises permanent share capital, profit and loss account and other eligible reserves, equity non-controlling interests and Additional Tier 1 instruments, after the deduction of certain regulatory adjustments
  • Permanent share capital is an item of capital issued by an organisation to an investor, which is fully paid-up and where the proceeds of issue are immediately and fully available. It can only be redeemed on the winding-up of the organisation. Profit and loss account and other eligible reserves are accumulated resources included in shareholders' funds in an organisation's balance sheet, with certain regulatory adjustments applied
  • Equity non-controlling interests represent the equity stakes held by non-controlling shareholders in the Group's undertakings
  • Additional Tier 1 securities are deeply subordinated instruments which have loss-absorbing qualities such as discretionary coupons, principal write-down or conversion to equity and can therefore be included as Tier 1 capital

Tier 2 capital

Tier 2 capital is gone concern capital to help ensure senior creditors and depositors can be repaid if the organisation fails. Tier 2 capital consists of capital instruments which are normally of medium to long-term maturity with an original maturity of at least five years. For regulatory purposes, it is a requirement that these instruments be amortised on a straight-line basis in their final five years of maturity.

Details of the Group's capital instruments (both Tier 1 and 2 capital) are set out in the Standard Chartered PLC Main Features of Capital Instruments document available on the Group's website at https://www.sc.com/en/investors/credit-ratings-fixedincome/#capitalsecurities.

Table 8 summarises the consolidated capital position of the Group.

Table 8: Reconciliation between financial total equity and regulatory CET1 before regulatory adjustments

2025
\$million		 2024
\$million
Total equity per balance sheet (financial view) 54,586 51,284
Consolidation and regulatory adjustments 56 53
Total equity per balance sheet (regulatory view) 54,642 51,337
Foreseeable dividend (1,377) (923)
Other equity instruments (included in AT1) (9,024) (7,996)
Non-controlling interests (202) (159)
Common Equity Tier 1 capital before regulatory adjustments 44,039 42,259

2.2 Capital resources continued Table 9: Composition of regulatory own funds (UK CC1)

2025
\$million		 2024
\$million
Common Equity Tier 1 (CET1) capital: instruments and reserves
1 Capital instruments and the related share premium accounts 5,120 5,201
Of which: Share premium accounts 3,989 3,989
2 Retained earnings1 24,528 24,950
3 Accumulated other comprehensive income (and other reserves) 10,406 8,724
5 Minority interests (amount allowed in consolidated CET1) 262 235
5a Independently reviewed interim and year-end profits/(loss)2 5,100 4,072
Foreseeable dividends3 (1,377) (923)
6 Common Equity Tier 1 (CET1) capital before regulatory adjustments 44,039 42,259
Common Equity Tier 1 capital: regulatory adjustments
7 Additional value adjustments (693) (624)
8 Intangible assets (net of related tax liability) (6,145) (5,696)
10 Deferred tax assets that rely on future profitability excluding those arising from
temporary differences (net of related tax liability where the conditions in Article 38 (3)
CRR are met) (15) (31)
11 Fair value reserves related to gains or losses on cash flow hedges of financial instruments
that are not valued at fair value (315) (4)
12 Negative amounts resulting from the calculation of expected loss amounts (599) (702)
14 Gains or losses on liabilities valued at fair value resulting from changes in own
credit standing 412 278
15 Defined-benefit pension fund assets (149) (149)
Fair value gains and losses from own credit risk related to derivative liabilities (70) (97)
UK-20a Exposure amount of the following items which qualify for a RW of 1250%, where the
institution opts for the deduction alternative (25) (44)
UK-20c Of which: securitisation positions (11) (8)
UK-20d Of which: free deliveries (14) (36)
27a Other regulatory adjustments to CET1 capital (including IFRS 9 transitional adjustments
when relevant)		 – –
28 Total regulatory adjustments to Common Equity Tier 1 (CET1) (7,599) (7,069)
29 Common Equity Tier 1 (CET1) capital 36,440 35,190
Additional Tier 1 (AT1) capital: instruments
30 Capital instruments and the related share premium accounts 7,529 6,502
31 Of which: classified as equity under applicable accounting standards 7,529 6,502
32 Of which: classified as liabilities under applicable accounting standards – –
36 Additional Tier 1 (AT1) capital before regulatory adjustments 7,529 6,502
Additional Tier 1 capital: regulatory adjustments – –
37 Direct, indirect and synthetic holdings by an institution of own AT1 instruments
(negative amount) (20) (20)
43 Total regulatory adjustments to Additional Tier 1 (AT1) capital (20) (20)
44 Additional Tier 1 (AT1) capital 7,509 6,482
45 Tier 1 capital (T1 = CET1 + AT1) 43,949 41,672
Tier 2 (T2) capital: instruments and provisions
46 Capital instruments and the related share premium accounts 9,041 11,231
47 Amount of qualifying items referred to in Article 484 (5) CRR and the related share
premium accounts subject to phase out from T2 as described in Article 486(4) CRR – –
48 Qualifying own funds instruments included in consolidated T2 capital (including minority
interests and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and
held by third parties 267 218
51 Tier 2 (T2) capital before regulatory adjustments 9,308 11,449
Tier 2 capital: regulatory adjustments
52 Direct, indirect and synthetic holdings by an institution of own T2 instruments and
subordinated loans (30) (30)
57 Total regulatory adjustments to Tier 2 (T2) capital (30) (30)
58 Tier 2 (T2) capital 9,278 11,419
59 Total capital (TC = T1 + T2) 53,227 53,091

2.2 Capital resources continued

2025
\$million		 2024
\$million
60 Total Risk exposure amount 258,031 247,065
Capital ratios and buffers
61 Common Equity Tier 1 (as a percentage of total risk exposure amount) 14.1% 14.2%
62 Tier 1 (as a percentage of total risk exposure amount) 17.0% 16.9%
63 Total capital (as a percentage of total risk exposure amount) 20.6% 21.5%
64 Institution CET1 overall capital requirement (CET1 requirement in accordance with Article
92 (1) CRR, plus additional CET1 requirement which the institution is required to hold in
accordance with point (a) of Article 104(1) CRD, plus combined buffer requirement in
accordance with Article 128(6) CRD) expressed as a percentage of risk exposure amount)		 10.26% 10.48%
65 Of which: capital conservation buffer requirement 2.50% 2.50%
66 Of which: countercyclical buffer requirement 0.38% 0.37%
67 Of which: systemic risk buffer requirement – –
UK-67a Of which: Global Systemically Important Institution (G-SII) or Other Systemically
Important Institution (O-SII) buffer		 1.0% 1.0%
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk exposure amount) 7.74% 7.64%
Amounts below the thresholds for deduction (before risk weighting)
72 Direct and indirect holdings of own funds and eligible liabilities of financial sector entities
where the institution does not have a significant investment in those entities (amount
below 10% threshold and net of eligible short positions)		 2,270 2,560
73 Direct and indirect holdings by the institution of the CET1 instruments of financial sector
entities where the institution has a significant investment in those entities (amount
below 17.65% thresholds and net of eligible short positions)		 1,186 868
75 Deferred tax assets arising from temporary differences (amount below 17,65% threshold,
net of related tax liability where the conditions in Article 38 (3) CRR are met)		 572 480
Applicable caps on the inclusion of provisions in Tier 2
76 Credit risk adjustments included in T2 in respect of exposures subject to standardised
approach (prior to the application of the cap)		 – –
77 Cap on inclusion of credit risk adjustments in T2 under standardised approach 575 500
78 Credit risk adjustments included in T2 in respect of exposures subject to internal
ratings-based approach (prior to the application of the cap)		 – –
79 Cap for inclusion of credit risk adjustments in T2 under internal ratings-based approach 826 845

1 Retained earnings under CRD IV include the effect of regulatory consolidation adjustments.

2 Independently reviewed year-end profits are in accordance with regulatory consolidation rules.

3 Foreseeable dividends as at FY 2025 represent ordinary, preference and AT1 securities dividends.

The main movements in capital in the period were:

  • CET1 capital increased by \$1.2 billion as retained profits of \$5.1 billion, movement in other comprehensive income of \$0.5 billion, foreign currency translation impact of \$0.9 billion were partly offset by share buyback of \$2.8 billion, distributions paid and foreseeable of \$1.9 billion, and an increase in regulatory deductions and other movements of \$0.5 billion.
  • AT1 capital increased by \$1.0 billion following the issuance of \$1.0 billion of 7.63 per cent securities and \$1.0 billion of 7.00 per cent securities partly offset by the redemption of \$1.0 billion of 6.00 per cent securities.
  • Tier 2 capital decreased by \$2.1 billion due to the redemption of \$2.2 billion of Tier 2 during the year partly offset by the reversal of regulatory amortisation and foreign currency translation impact.

The Group's current CET1 requirement is 10.3 per cent, comprising:

  • A minimum Pillar 1 CET1 requirement of 4.5 per cent
  • A Pillar 2A CET1 requirement of 1.9 per cent being 56 per cent of the total Pillar 2A requirement of 3.3 per cent
  • A capital conservation buffer of 2.5 per cent
  • A G-SII buffer of 1.0 per cent
  • A countercyclical capital buffer of 0.4 per cent

2.2 Capital resources continued

Table 10: Reconciliation of regulatory own funds to balance sheet in the audited financial statements (UK CC2)

2025 2024
Balance sheet as
in published
financial
statements		 Under
regulatory
scope of
consolidation		 Balance sheet as
in published
financial
statements		 Under
regulatory
scope of
consolidation
Assets \$million \$million \$million \$million
Cash and balances at central banks 77,746 77,816 63,447 63,500
Financial assets held at fair value through profit or loss 195,257 195,253 177,517 177,515
Derivative financial instruments 65,782 65,782 81,472 81,472
Loans and advances to banks 43,901 43,901 43,593 43,593
Loans and advances to customers 286,788 286,788 281,032 281,032
Investment securities 166,956 168,743 144,556 145,568
Other assets 67,931 68,172 43,468 43,794
Current tax assets 574 573 663 663
Prepayments and accrued income 3,058 3,064 3,207 3,209
Interests in associates and joint ventures 1,426 1,486 1,020 996
Goodwill and intangible assets 6,231 6,263 5,791 5,814
Of which: goodwill 6,224 6,258 5,791 5,810
Of which: other intangibles (excluding MSRs) 7 5 – 4
Of which: MSRs – – – –
Property, plant and equipment 2,559 2,558 2,425 2,424
Deferred tax assets 493 493 414 414
Retirement benefit schemes in surplus 154 154 151 151
Assets classified as held for sale 1,099 1,099 932 932
Total assets 919,955 922,145 849,688 851,077
Liabilities
Deposits by banks 30,846 30,846 25,400 25,400
Customer accounts 530,161 530,161 464,489 464,489
Repurchase agreements and other similar secured borrowing 7,757 7,757 12,132 12,132
Financial liabilities held at fair value through profit or loss 89,597 89,597 85,462 85,462
Derivative financial instruments 68,204 68,204 82,064 82,064
Debt securities in issue 72,858 72,858 64,609 64,609
Other liabilities 46,655 48,911 44,681 46,148
Current tax liabilities 709 705 726 727
Accruals and deferred income 7,358 7,237 6,896 6,768
Subordinated liabilities and other borrowed funds 8,834 8,834 10,382 10,382
Of which: considered as Additional Tier 1 capital – – – –
Of which: considered as Tier 2 capital 8,834 8,834 10,382 10,382
Deferred tax liabilities 752 752 567 567
Provisions for liabilities and charges 401 401 349 349
Retirement benefit obligations 323 323 266 266
Liabilities included in disposal groups held for sale 914 914 381 381
Total liabilities 865,369 867,500 798,404 799,744
Shareholders' Equity
Share capital and share premium account
Other reserves & retained earnings		 6,614
39,979		 6,614
40,034		 6,695
37,693		 6,695
37,745
Total parent company shareholders' equity 46,593 46,648 44,388 44,440
Other equity instruments 7,528 7,529 6,502 6,502
Total equity excluding non-controlling interests 54,121 54,177 50,890 50,942
Non-controlling interest 465
54,586		 468
54,645		 394 391
Total equity
Total equity and liabilities		 919,955 922,145 51,284
849,688		 51,333
851,077

2.3 Minimum requirement for own funds and eligible liabilities

From 1 January 2019, a requirement for total loss-absorbing capacity (TLAC) was introduced, as defined in the final standards adopted by the Financial Stability Board (FSB). In the EU, TLAC requirements were implemented by the Capital Requirements Regulation II (CRR II) which was published in the Official Journal of the European Union on the 7 June 2019 and came into effect on 27 June 2019 and included a new framework on MREL.

MREL is intended to ensure that there is sufficient equity and specific types of liabilities to facilitate an orderly resolution that minimises any impact on financial stability and ensures the continuity of critical functions and avoids exposing taxpayers to loss. The new framework is complemented with new disclosure requirements. As the specific EU format for disclosure is yet to be agreed, the disclosures are based on the formats provided in the Basel Committee Standards for Pillar 3 Phase 2 disclosures requirements.

The Group's MREL leverage requirement as at 31 December 2025 was 28.4 per cent of RWA. This is composed of a minimum requirement of 24.5 per cent of RWA and the Group's combined buffer (comprising the capital conservation buffer, the G-SII buffer and the countercyclical buffer). The Group's MREL ratio was 33.5 per cent of RWA and 9.2 per cent of leverage exposure at 31 December 2025.

During 2025, the Group successfully raised \$9.9 billion of MREL eligible securities from its holding company, Standard Chartered PLC. Issuance include \$2.0 billion of Additional Tier 1 and \$7.9 billion of callable senior debt.

The Group raised an additional \$0.6 billion of Additional Tier 1 and \$3.7 billion in senior securities post the balance sheet date, i.e. not included in the FY 2025 MREL position.

Details of the Group's MREL eligible instruments are set out in the Standard Chartered PLC Main Features of Capital Instruments document available on the Group's website at https://www.sc.com/en/investors/credit-ratings-fixedincome/#capitalsecurities.

2.3 Minimum requirement for own funds and eligible liabilities continued

Table 11 shows details of the composition of the Groups MREL.

Table 11: TLAC composition for G-SIBs (TLAC1)

2025
\$million		 2024
\$million
Regulatory capital elements of TLAC and adjustments
Common Equity Tier 1 capital (CET1) 36,440 35,189
Additional Tier 1 capital (AT1) before TLAC adjustments 7,509 6,482
AT1 ineligible as TLAC as issued out of subsidiaries to third parties – –
Other adjustments – –
AT1 instruments eligible under the TLAC framework 7,509 6,482
Tier 2 capital (T2) before TLAC adjustments 9,278 11,419
Amortised portion of T2 instruments where remaining maturity > 1 year 941 714
T2 capital ineligible as TLAC as issued out of subsidiaries to third parties (267) (218)
Other adjustments – –
T2 instruments eligible under the TLAC framework 9,952 11,915
TLAC arising from regulatory capital 53,901 53,587
Non-regulatory capital elements of TLAC
External TLAC instruments issued directly by the bank and subordinated to excluded liabilities – –
External TLAC instruments issued directly by the bank which are not subordinated to excluded liabilities
but meet all other TLAC term sheet requirements 32,599 30,987
Of which: amount eligible as TLAC after application of the caps 32,599 30,987
External TLAC instruments issued by funding vehicles prior to 1 January 2022 – –
Eligible ex ante commitments to recapitalise a G-SIB in resolution – –
TLAC arising from non-regulatory capital instruments before adjustments 32,599 30,987
Non-regulatory capital elements of TLAC: adjustments
TLAC before deductions 86,461 84,573
Deductions of exposures between MPE resolution groups that correspond to items eligible for TLAC (not
applicable to SPE G-SIBs) – –
Deduction of investments in own other TLAC liabilities (39) (11)
Other adjustments to TLAC – –
TLAC after deductions 86,561 84,562
Risk-weighted assets and leverage exposure measure for TLAC purposes
Total risk-weighted assets adjusted as permitted under the TLAC regime 258,031 247,065
UK Leverage exposure measure 938,190 868,344
TLAC ratios and buffers
TLAC (as a percentage of risk-weighted assets adjusted as permitted under the TLAC regime) 33.5% 34.2%
TLAC (as a percentage of leverage exposure) 9.2% 9.7%
CET1 (as a percentage of risk-weighted assets) available after meeting the resolution group's minimum
capital and TLAC requirements 7.7% 7.7%
Institution-specific buffer requirement (capital conservation buffer plus countercyclical buffer
requirements plus higher loss absorbency requirement, expressed as a percentage of risk-weighted
assets)		 3.9% 3.9%
Of which: capital conservation buffer requirement 2.5% 2.5%
Of which: bank specific countercyclical buffer requirement 0.4% 0.4%
Of which: higher loss absorbency requirement 1.0% 1.0%

2.3 Minimum requirement for own funds and eligible liabilities continued

Table 12 shows information regarding the ranking of the Group's liabilities at the resolution group level.

Table 12: Resolution entity – creditor ranking at legal entity level (TLAC3)

2025
Creditor ranking
1
\$million		 2
\$million		 3
\$million		 Total
\$million
Description of creditor ranking Tertiary Tertiary Ordinary
non non non
preferential preferential preferential
debt2 debt – Tier 2 debt3
securities
Total capital and liabilities net of credit risk mitigation1 7,580 10,147 36,890 54,617
Of which: are excluded liabilities – – (1,278) (1,278)
Total capital and liabilities less excluded liabilities 7,580 10,147 35,612 53,339
Of which: are potentially eligible as TLAC 7,580 10,147 35,612 53,339
Of which: with 1 year ≤ residual maturity < 2 years – 1,250 5,316 6,566
Of which: with 2 years ≤ residual maturity < 5 years – – 13,474 13,474
Of which: with 5 years ≤ residual maturity < 10 years – 3,134 12,721 15,855
Of which: with residual maturity ≥ 10 years, but excluding
perpetual securities – 4,000 4,101 8,101
Of which: perpetual securities 7,580 1,763 – 9,343
2024
Creditor ranking
1
\$million		 2
\$million		 3
\$million		 Total
\$million
Description of creditor ranking Tertiary Tertiary Ordinary
non non non
preferential preferential preferential
debt2 debt – Tier 2 debt3
securities
Total capital and liabilities net of credit risk mitigation1 6,580 11,975 32,646 51,202
Of which: are excluded liabilities – – (650) (650)
Total capital and liabilities less excluded liabilities 6,580 11,975 31,996 50,552
Of which: are potentially eligible as TLAC 6,580 11,975 31,996 50,552
Of which: with 1 year ≤ residual maturity < 2 years – – 5,032 5,032
Of which: with 2 years ≤ residual maturity < 5 years – 1,250 12,934 14,184
Of which: with 5 years ≤ residual maturity < 10 years – 4,980 10,004 14,984
Of which: with residual maturity ≥ 10 years, but excluding
perpetual securities – 4,000 4,027 8,027
Of which: perpetual securities 6,580 1,745 – 8,325

1 Excludes CET1 and is based on accounting values.

2 AT1 Preference shares and Contingent Convertible Capital Instruments.

3 Senior bonds, derivative liabilities, tax claims etc.

TLAC 2 is a G-SII disclosure requirement to provide the ranking of the liability structure of all of the Group's material sub-groups in as defined by the FSB TLAC Term Sheet. The group has 5 material sub-groups; Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Limited, Standard Chartered Bank Korea Limited, Standard Chartered Bank (China) Limited, and Standard Chartered Bank (Singapore) Limited for which disclosure would be required.

2.3 Minimum requirement for own funds and eligible liabilities continued Table 13: Standard Chartered Bank – creditor ranking (TLAC2)

2025
Creditor ranking
1 2 3 4 5 Total
\$million \$million \$million \$million \$million \$million
Is the resolution entity the creditor/
investor?		 No1 Yes No Yes Yes
Description of creditor ranking Tertiary Tertiary Tertiary Tertiary Secondary
non non non non non
preferential preferential preferential preferential preferential
debt – debt – debt – debt – debt
common AT1 cocos Tier 2 Tier 2
shares securities securities
Total capital and liabilities net of credit
risk mitigation2 20,597 5,722 291 8,888 8,248 43,746
Of which: are excluded liabilities – – – – – –
Total capital and liabilities less
excluded liabilities 20,597 5,722 291 8,888 8,248 43,746
Of which: are potentially eligible
as TLAC 20,597 5,722 291 8,888 8,248 43,746
Of which: with 1 year ≤ residual maturity
< 2 years – – – – – –
Of which: with 2 years ≤ residual
maturity < 5 years – – – – 6,550 6,550
Of which: with 5 years ≤ residual
maturity < 10 years – – 291 4,000 1,698 5,990
Of which: with residual maturity ≥ 10
years, but excluding perpetual securities – – – 4,138 – 4,138
Of which: is perpetual securities 20,597 5,722 – 750 – 27,069
2024
Creditor ranking
1
\$million		 2
\$million		 3
\$million		 4
\$million		 5
\$million		 Total
\$million
Is the resolution entity the creditor/
investor?		 No1 Yes No Yes Yes
Description of creditor ranking Tertiary Tertiary Tertiary Tertiary Secondary
non non non non non
preferential preferential preferential preferential preferential
debt – debt – debt – debt – debt
common AT1 cocos Tier 2 Tier 2
shares securities securities
Total capital and liabilities net of credit
risk mitigation2		 20,597 5,722 291 10,826 8,165 45,601
Of which: are excluded liabilities – – – – – –
Total capital and liabilities less
excluded liabilities		 20,597 5,722 291 10,826 8,165 45,601
Of which: are potentially eligible
as TLAC		 20,597 5,722 291 10,826 8,165 45,601
Of which: with 1 year ≤ residual maturity
< 2 years		 – – – – 280 280
Of which: with 2 years ≤ residual
maturity < 5 years		 – – – – 5,544 5,544
Of which: with 5 years ≤ residual
maturity < 10 years		 – – 291 4,035 841 5,167
Of which: with residual maturity ≥ 10
years, but excluding perpetual securities		 – – – 6,041 1,500 7,541
Of which: is perpetual securities 20,597 5,722 – 750 – 27,069

1 Held by Standard Chartered Holdings Limited.

2.3 Minimum requirement for own funds and eligible liabilities continued Table 14: Standard Chartered Bank (Hong Kong) Limited – creditor ranking (TLAC2)

2025
Creditor ranking
1
\$million		 2
\$million		 3
\$million		 4
\$million		 Total
\$million
Is the resolution entity the creditor/investor? Yes Yes Yes Yes
Description of creditor ranking Common
Shares		 Securities
and
preference
shares
qualifying as
AT1		 Dated
subordinated
notes
qualifying as
Tier 2		 Loss
absorbing
non
preferred
notes
Total capital and liabilities net of credit risk mitigation1 8,354 4,800 1,873 3,923 18,949
Of which: are excluded liabilities – – – – –
Total capital and liabilities less excluded liabilities 8,354 4,800 1,873 3,923 18,949
Of which: are potentially eligible as TLAC 8,354 4,800 1,873 3,923 18,949
Of which: with 1 year ≤ residual maturity < 2 years – – – 1,500 1,500
Of which: with 2 years ≤ residual maturity < 5 years – – – 1,250 1,250
Of which: with 5 years ≤ residual maturity < 10 years – – 1,173 1,173 2,345
Of which: with residual maturity ≥ 10 years, but
excluding perpetual securities		 – – 700 – 700
Of which: is perpetual securities 8,354 4,800 – – 13,154
2024
Creditor ranking
1
\$million		 2
\$million		 3
\$million		 4
\$million		 Total
\$million
Is the resolution entity the creditor/investor? Yes Yes Yes Yes
Description of creditor ranking Common
Shares		 Securities and
preference
shares
qualifying as
AT1		 Dated
subordinated
notes
qualifying as
Tier 2		 Loss
absorbing
non-preferred
notes
Total capital and liabilities net of credit risk mitigation1 8,374 3,000 1,290 3,790 16,454
Of which: are excluded liabilities – – – – –
Total capital and liabilities less excluded liabilities 8,374 3,000 1,290 3,790 16,454
Of which: are potentially eligible as TLAC 8,374 3,000 1,290 3,790 16,454
Of which: with 1 year ≤ residual maturity < 2 years – – – – –
Of which: with 2 years ≤ residual maturity < 5 years – – – 2,750 2,750
Of which: with 5 years ≤ residual maturity < 10 years – – 1,290 1,040 2,330
Of which: with residual maturity ≥ 10 years, but
excluding perpetual securities		 – – – – –
Of which: is perpetual securities 8,374 3,000 – – 11,374

2.3 Minimum requirement for own funds and eligible liabilities continued Table 15: Standard Chartered Bank Korea Limited – creditor ranking (TLAC2)

2025
Creditor ranking
1
\$million		 2
\$million		 3
\$million		 Total
\$million
Is the resolution entity the creditor/investor? No1 No2 No3
Description of creditor ranking Common Additional Tier 2
Shares Tier 1
securities		 securities
Total capital and liabilities net of credit risk mitigation4 1,302 266 695 2,263
Of which: are excluded liabilities – – – –
Total capital and liabilities less excluded liabilities 1,302 266 695 2,263
Of which: are potentially eligible as TLAC 1,302 266 695 2,263
Of which: with 1 year ≤ residual maturity < 2 years – – – –
Of which: with 2 years ≤ residual maturity < 5 years – – 695 695
Of which: with 5 years ≤ residual maturity < 10 years – – – –
Of which: with residual maturity ≥ 10 years, but excluding
perpetual securities – – – –
Of which: is perpetual securities 1,302 266 – 1,568
2024
Creditor ranking
1
\$million		 2
\$million		 3
\$million		 Total
\$million
Is the resolution entity the creditor/investor? No1 No2 No3
Description of creditor ranking Common
Shares		 Additional
Tier 1
securities		 Tier 2
securities
Total capital and liabilities net of credit risk mitigation4 1,302 266 679 2,247
Of which: are excluded liabilities – – – –
Total capital and liabilities less excluded liabilities 1,302 266 679 2,247
Of which: are potentially eligible as TLAC 1,302 266 679 2,247
Of which: with 1 year ≤ residual maturity < 2 years – – – –
Of which: with 2 years ≤ residual maturity < 5 years – – 679 679
Of which: with 5 years ≤ residual maturity < 10 years – – – –
Of which: with residual maturity ≥ 10 years, but excluding
perpetual securities		 – – – –
Of which: is perpetual securities 1,302 266 – 1,568

1 Held by Standard Chartered NEA Limited.

2 Held by Standard Chartered Bank (Hong Kong) Limited.

3 Held by Standard Chartered Bank.

2.3 Minimum requirement for own funds and eligible liabilities continued Table 16: Standard Chartered Bank (Singapore) Limited – creditor ranking (TLAC2)

2025
Creditor ranking
1
\$million		 1
\$million		 2
\$million		 2
\$million		 3
\$million		 3
\$million		 Total
\$million
Is the resolution entity the
creditor/investor?		 No1 Yes No2 No2 Yes No2
Description of creditor ranking Common Shares AT1 Non
cumulative
Preference
Shares		 AT1 Non
cumulative
Preference
Shares		 AT1 Non
cumulative
Capital
Securities		 Tier 2
Subordinated
Notes		 Tier 2
Subordinated
Notes
Total capital and liabilities net of
credit risk mitigation3		 5,770 500 298 580 – 2,650 9,799
Of which: are excluded
liabilities		 – – – – – – –
Total capital and liabilities less
excluded liabilities		 5,770 500 298 580 – 2,650 9,799
Of which: are potentially
eligible as TLAC		 5,770 500 298 580 – 2,650 9,799
Of which: with 1 year ≤ residual
maturity < 2 years		 – – – – – – –
Of which: with 2 years ≤ residual
maturity < 5 years		 – – – – – – –
Of which: with 5 years ≤ residual
maturity < 10 years		 – – – – – 2,650 2,650
Of which: with residual maturity
≥ 10 years, but excluding
perpetual securities		 – – – – – – –
Of which: is perpetual securities 5,770 500 298 580 – – 7,149
2024
Creditor ranking
1
\$million		 1
\$million		 2
\$million		 3
\$million		 3
\$million		 3
\$million		 Total
\$million
Is the resolution entity the
creditor/investor?		 No1 Yes No2 No2 Yes No2
Description of creditor ranking Common Shares AT1 Non
cumulative
Preference		 AT1 Non
cumulative
Preference		 AT1 Non
cumulative
Capital Securities		 Tier 2
Subordinated
Notes		 Tier 2
Subordinated
Notes
Total capital and liabilities net of
credit risk mitigation2		 5,770 Shares
500		 Shares
298		 580 540 2,096 9,785
Of which: are excluded
liabilities		 – – – – – – –
Total capital and liabilities less
excluded liabilities		 5,770 500 298 580 540 2,096 9,785
Of which: are potentially
eligible as TLAC		 5,770 500 298 580 540 2,096 9,785
Of which: with 1 year ≤ residual
maturity < 2 years		 – – – – – – –
Of which: with 2 years ≤ residual
maturity < 5 years		 – – – – – – –
Of which: with 5 years ≤ residual
maturity < 10 years		 – – – – 540 2,096 2,636
Of which: with residual maturity
≥ 10 years, but excluding
perpetual securities		 – – – – – – –
Of which: is perpetual securities 5,770 500 298 580 – – 7,149

1 Held by Standard Chartered Holdings (Singapore) Private Limited (\$3,963 million), Standard Chartered Bank Malaysia Berhad (\$1,273 million), Standard Chartered Bank Vietnam Limited (\$333 million), and Standard Chartered Bank (Thai) PCL (\$203 million).

2 Held by Standard Chartered Bank.

2.3 Minimum requirement for own funds and eligible liabilities continued Table 17: Standard Chartered Bank (China) Limited – creditor ranking (TLAC2)

2025
Creditor ranking
1
\$million		 2
\$million		 Total
\$million
Is the resolution entity the creditor/investor? No1 Yes
Description of creditor ranking Common
Shares		 Tier-2
capital
Total capital and liabilities net of credit risk mitigation2 1,446 858 2,304
Of which: are excluded liabilities – – –
Total capital and liabilities less excluded liabilities 1,446 858 2,304
Of which: are potentially eligible as TLAC 1,446 858 2,304
Of which: with 1 year ≤ residual maturity < 2 years – – –
Of which: with 2 years ≤ residual maturity < 5 years – – –
Of which: with 5 years ≤ residual maturity < 10 years – – –
Of which: with residual maturity ≥ 10 years, but excluding perpetual securities – 858 858
Of which: is perpetual securities 1,446 – 1,446
2024
Creditor ranking
1
\$million		 2
\$million		 Total
\$million
Is the resolution entity the creditor/investor? No1 Yes
Description of creditor ranking Common
Shares		 Tier-2
capital
Total capital and liabilities net of credit risk mitigation2 1,446 557 2,003
Of which: are excluded liabilities – – –
Total capital and liabilities less excluded liabilities 1,446 557 2,003
Of which: are potentially eligible as TLAC 1,446 557 2,003
Of which: with 1 year ≤ residual maturity < 2 years – – –
Of which: with 2 years ≤ residual maturity < 5 years – – –
Of which: with 5 years ≤ residual maturity < 10 years – 557 557
Of which: with residual maturity ≥ 10 years, but excluding perpetual securities – – –
Of which: is perpetual securities 1,446 – 1,446

1 Held by Standard Chartered Bank (Hong Kong) Limited.

2 Excludes CET1 (except common shares) and is based on accounting carrying values.

2.4 Countercyclical capital buffer

The Group's countercyclical capital buffer (CCyB) is determined by applying various country-specific CCyB rates to the Group's qualifying credit exposures in the relevant country (based on the jurisdiction of the obligor) on a weighted average basis.

The Group's CCyB requirement is 38 basis points, representing an increase of 1 basis point compared to 31 December 2024.

Countries are included in the table if the relevant own funds requirements of that country are greater than 1 per cent of the Group's total relevant own funds requirements for CCyB calculation.

2.4 Countercyclical capital buffer continued

Table 18: Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer (UK CCyB1)

2025
General credit exposures Relevant credit exposures
– Market risk		 Own funds requirements
Breakdown
by country		 Exposure
value under
the
standardised
approach
\$million		 Exposure
value under
the IRB
approach
\$million		 Sum of long
and short
positions of
trading
book
exposures
for SA
\$million		 Value of
trading
book
exposures
for internal
models
\$million		 Securiti
sation
exposures
Exposure
value for
non-trading
book
\$million		 Total
exposure
value
\$million		 Relevant
credit risk
exposures
– Credit risk
\$million		 Relevant
credit
exposures
– Market risk
\$million		 Relevant
credit
exposures
– Securiti
sation
positions in
the
non-trading
book
\$million		 Total
\$million		 Risk
weighted
exposure
amounts
\$million		 Own fund
require
ments
weights
%		 Countercy
clical
buffer rate
%
Armenia – – – – – – – – – – – 0.0% 1.5%
Australia 251 3,212 468 – 289 4,220 96 36 4 136 1,701 1.1% 1.0%
Belgium – 564 2 – 20 586 8 – – 9 114 0.1% 1.0%
Bulgaria – – – – – – – – – – – 0.0% 2.0%
Chile – 206 106 – 7 319 6 4 – 10 120 0.1% 0.5%
Croatia – 5 – – – 5 – – – – 3 0.0% 1.5%
Cyprus 2 157 – – – 159 9 – – 9 109 0.1% 1.0%
Czech Republic – – 6 – – 6 – 1 – 1 18 0.0% 1.3%
Denmark 12 771 3 – 177 963 12 – 3 14 179 0.1% 2.5%
Estonia – – 4 – – 4 – – – – – 0.0% 1.5%
France 51 3,302 378 – 1,035 4,766 75 21 16 112 1,403 0.9% 1.0%
Germany 69 5,549 390 – 1,475 7,483 102 26 22 150 1,871 1.2% 0.8%
Greece 1 471 7 – – 479 6 1 – 6 80 0.0% 0.3%
Hong Kong 6,272 71,804 468 – 230 78,774 1,698 16 3 1,718 21,472 13.3% 0.5%
Hungary – 238 201 – – 439 12 1 – 12 153 0.1% 1.0%
Iceland – – – – – – – – – – – 0.0% 2.5%
Ireland 30 3,628 1,023 – 176 4,857 54 82 3 139 1,739 1.1% 1.5%
Korea 868 34,843 1,302 – 178 37,191 736 11 3 749 9,367 5.8% 1.0%
Latvia – – – – – – – – – – – 0.0% 1.0%
Lithuania – – – – – – – – – – – 0.0% 1.0%
Luxembourg 267 7,241 101 – 379 7,988 144 7 6 157 1,959 1.2% 0.5%
Netherlands 2 2,039 66 – 769 2,876 109 4 12 125 1,560 1.0% 2.0%
Norway – 386 7 – 305 698 13 – 5 18 227 0.1% 2.5%
Poland 30 173 10 – – 213 9 – – 9 110 0.1% 1.0%
Romania 1 – – – – 1 – – – – – 0.0% 1.0%
Slovakia 1 5 – – – 6 – – – – 2 0.0% 1.5%
Slovenia – – 7 – – 7 – 1 – 1 10 0.0% 1.0%
Spain 9 251 59 – 60 379 12 4 1 17 217 0.1% 0.5%
Sweden – 975 52 – 245 1,272 26 5 4 35 437 0.3% 2.0%
United Kingdom 4,366 46,594 1,444 – 16,522 68,926 820 42 240 1,102 13,773 8.5% 2.0%
Other countries 39,271 235,970 24,528 – 10,039 309,808 7,619 615 147 8,384 104,785 73.7% 0.0%

2.4 Countercyclical capital buffer continued

Table 18: Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer (UK CCyB1) continued

2024
General credit exposures Relevant credit exposures
– Market risk		 Own funds requirements
Breakdown
by country		 Exposure
value under
the
standardised
approach
\$million		 Exposure
value under
the IRB
approach
\$million		 Sum of long
and short
positions of
trading
book
exposures
for SA
\$million		 Value of
trading
book
exposures
for internal
models
\$million		 Securiti
sation
exposures
Exposure
value for
non-trading
book
\$million		 Total
exposure
value
\$million		 Relevant
credit risk
exposures
– Credit risk
\$million		 Relevant
credit
exposures
– Market risk
\$million		 Relevant
credit
exposures
– Securiti
sation
positions in
the
non-trading
book
\$million		 Total
\$million		 Risk
weighted
exposure
amounts
\$million		 Own fund
require
ments
weights
%		 Countercy
clical
buffer rate
%
Armenia – – – – – – – – – – – 0.0% 1.5%
Australia 156 2,333 144 – 34 2,667 82 11 – 94 1,170 0.7% 1.0%
Belgium – 757 4 – – 761 4 – – 5 59 0.0% 1.0%
Bulgaria – – – – – – – – – – – 0.0% 2.0%
Chile – 129 25 – – 154 3 3 – 6 78 0.0% 0.5%
Croatia – 7 – – – 7 – – – – 4 0.0% 1.5%
Cyprus 2 134 – – – 136 4 – – 4 55 0.0% 1.0%
Czech Republic – – 3 – – 3 – – – – 4 0.0% 1.3%
Denmark 6 665 1 – – 672 20 – – 20 248 0.2% 2.5%
Estonia – – – – – – – – – – – 0.0% 1.5%
France 14 4,117 221 – – 4,352 66 10 – 76 946 0.6% 1.0%
Germany 31 6,709 329 – 3,152 10,220 85 8 47 140 1,747 1.1% 0.8%
Hong Kong 5,692 72,370 620 – 3,902 82,583 1,776 8 60 1,844 23,048 14.6% 0.5%
Hungary – 553 196 – – 749 15 – – 15 190 0.1% 0.5%
Ireland – – – – – – – – – – – 0.0% 2.5%
Ireland 53 2,113 33 – 78 2,278 32 50 1 83 1,041 0.7% 1.5%
Korea 910 34,811 292 – – 36,014 789 3 – 792 9,895 6.3% 1.0%
Lithuania – – – – – – – – – – – 0.0% 1.0%
Luxembourg 134 6,519 12 – 332 6,997 110 2 4 116 1,450 0.9% 0.5%
Netherlands 20 2,261 31 – – 2,312 86 2 – 88 1,099 0.7% 2.0%
Norway 1 239 4 – – 244 10 – – 11 131 0.1% 2.5%
Romania 1 – – – – 1 – – – – – 0.0% 1.0%
Slovakia – – – – – – – – – – – 0.0% 1.5%
Slovenia – – – – – – – – – – – 0.0% 0.5%
Sweden – 1,229 8 – – 1,238 28 1 – 30 374 0.2% 2.0%
United Kingdom 3,780 41,306 1,054 – 18,348 64,487 822 27 265 1,114 13,926 8.8% 2.0%
Other Countries 36,254 229,587 16,766 – 5,482 288,090 7,533 572 79 8,184 102,302 64.8% 0.0%

Table 19: Amount of institution-specific countercyclical capital buffer (UK CCyB2)

2025
\$million		 2024
\$million
1 Total risk exposure amount (see Table 20: Overview of RWA (OV1)) 258,031 247,065
2 Institution specific countercyclical capital buffer rate 0.38% 0.37%
3 Institution specific countercyclical capital buffer requirement 982 926

2.5 Capital Requirements

The Group's Pillar 1 and Pillar 2A requirements, together with the Combined Buffer, define the threshold at which Maximum Distributable Amount (MDA) restrictions take effect. If the Group's capital falls below this level, restrictions on discretionary distributions would apply. The Group expects to continue to maintain a prudent management buffer above this threshold.

The PRA may also set an additional buffer of CET1 capital, known as the PRA buffer. The purpose of the PRA buffer is to cover losses that may arise in a period of stress, with its calibration informed by supervisory assessments and stress testing outcomes. The PRA buffer is not disclosed.

The Group's Pillar 1 capital requirements, together with the corresponding RWAs, are set out in the table below. Additional detail on credit RWAs is provided in Table 51 for IRB credit risk (including counterparty credit risk); Table 22 for the IRB RWA flow statements (excluding securitisation balances below); Table 68 for exposures under the Standardised Approach (including amounts below the threshold for deduction); and section 4.2 for exposures subject to counterparty credit risk.

2.5 Capital Requirements continued Table 20: Overview of risk weighted exposure amounts (UK OV1)

31.12.25 30.09.25 31.12.24
Risk
weighted
assets
\$million		 Regulatory
capital
requirement1
\$million		 Risk
weighted
assets
\$million		 Regulatory
capital
requirement1
\$million		 Risk
weighted
assets
\$million		 Regulatory
capital
requirement1
\$million
1 Credit risk (excluding CCR)2 159,477 12,758 160,229 12,818 158,107 12,649
2 Of which the standardised approach (Table 68) 37,456 2,996 38,201 3,056 34,063 2,725
4 Of which slotting approach 5,857 469 5,812 465 5,868 469
5 Of which the advanced IRB (AIRB) approach
(Table 53)		 116,164 9,293 116,216 9,297 118,175 9,454
6 Counterparty credit risk – CCR3 22,406 1,792 20,941 1,675 22,128 1,770
7 Of which the standardised approach 4,197 336 4,165 333 3,583 287
8 Of which internal model method (IMM) 10,667 853 9,786 783 11,322 906
UK 8a Of which exposures to a CCP 1,322 106 1,221 98 1,051 84
UK 8b Of which credit valuation adjustment – CVA
(Table 91)		 2,413 193 2,095 168 2,706 216
9 Of which other CCR 3,806 304 3,675 294 3,467 277
15 Settlement risk – – – – – –
16 Securitisation exposures in the non-trading book 5,867 469 5,667 453 5,697 456
17 Of which SEC-IRBA approach 2,779 222 2,937 235 2,843 227
18 Of which SEC-ERBA (including IAA) 2,059 165 2,018 161 2,188 175
19 Of which SEC-SA approach 1,029 82 711 57 666 53
UK 19a Of which 1250%/deduction – – – – – –
20 Position, foreign exchange and commodities risks
(Market risk) (Table 81)		 30,663 2,453 34,726 2,778 28,283 2,263
21 Of which the standardised approach 17,156 1,372 18,588 1,487 13,810 1,105
22 Of which IMA 13,507 1,081 16,138 1,291 14,474 1,158
UK 22a Large exposures – – – – – –
23 Operational risk4 35,223 2,818 32,578 2,606 29,479 2,358
25 Of which standardised approach 35,223 2,818 32,578 2,606 29,479 2,358
27 Amounts below the thresholds for deduction
(subject to 250% risk weight) (Table 68)		 4,395 352 4,237 339 3,371 270
28 Floor Adjustment – – – – – –
29 Total 258,031 20,642 258,378 20,670 247,065 19,765

1 The regulatory capital requirement is calculated as 8 per cent of the RWA, and represents the minimum total capital ratio in accordance with CRR Article 92 (1).

2 Credit risk (excluding counterparty credit risk) includes non-credit obligation assets.

3 Counterparty credit risk includes assets which are assessed under IRB and SA.

4 To calculate operational risk standardised risk-weighted assets, a regulatory defined beta co-efficient is applied to average gross income for the previous three years, across each of the eight business lines prescribed in the CRR.

RWA increased by \$11.0 billion, or 4 per cent from 31 December 2024 to \$258.0 billion.

  • Credit risk RWA increased by \$2.8 billion to \$192.1 billion. This was driven by an increase of \$6.4 billion in asset growth, quality and mix, a \$1.0 billion increase in derivatives and a \$3.9 billion increases from foreign currency translation. The increase was partly offset by a decrease of \$7.4 billion from optimisation actions and \$1.1 billion reduction from model changes.
  • Total Market Risk RWA increased by \$2.4 billion, or 8.4 per cent from 31 December 2024 to \$30.7 billion, mainly due to \$2.1 billion increase in Standardised Approach (SA) Specific Interest Rate Risk RWA mainly due to increases in the Credit Trading portfolio.
  • Operational risk RWA increased by \$5.7 billion, or 19.5 per cent, from 31 December 2024 to \$35.2 billion primarily driven by an increase in average income measured over a rolling three-year time horizon. The Group has brought forward the annual refresh of Operational Risk RWA with RWA increase recognised in Q4'25 rather than Q1'26, as earlier guided, resulting in two operational risk RWA increases in 2025.

2.5 Capital Requirements continued

Table 21 shows the significant drivers of credit risk, market risk and operational risk RWA movements from 31 December 2024.

Table 21: Movement analysis for RWA

Total Credit &
Credit risk
IRB		 Credit risk
SA		 Credit risk
Total		 Counterparty
Credit risk		 Counterparty
Credit risk		 Operational
risk		 Market
risk		 Total
\$million \$million \$million \$million \$million \$million \$million \$million
As at 31 December 2024 129,074 38,101 167,175 22,128 189,303 29,479 28,283 247,065
Asset size (7,193) 4,293 (2,899) (432) (3,332) – – (3,332)
Asset quality 2,248 1 2,249 75 2,324 – – 2,324
Model updates 419 – 419 (1,300) (881) – 51 (830)
Methodology and policy – – – – – – – –
Acquisitions and disposals (114) (3) (117) – (117) – – (117)
Foreign exchange movements 2,550 756 3,306 468 3,774 – – 3,774
Other, including non-credit risk
movements1 – – – – – 3,099 6,392 9,491
As at 30 September 2025 126,984 43,149 170,133 20,941 191,074 32,578 34,726 258,378
Asset size 849 (194) 655 1,629 2,284 – – 2,284
Asset quality (735) (1) (736) (161) (897) – – (897)
Model updates (186) – (186) – (186) – 12 (174)
Methodology and policy – – – – – – – –
Acquisitions and disposals (287) (1) (288) 1 (287) – – (287)
Foreign exchange movements 234 (73) 161 (4) 157 – – 157
Other, including non-credit risk
movements1 – – – – – 2,645 (4,075) (1,430)
As at 31 December 2025 126,859 42,880 169,739 22,406 192,145 35,223 30,663 258,031

1 RWA efficiencies are disclosed against 'Other, including non-credit risk movements'.

2 See Table 20: Overview of risk weighted exposure amounts (UK OV1). To note that 'Securitisation exposures in the non-trading book', 'Settlement risk' and 'Amounts below the threshold for deduction (subject to 250% risk-weight)' are included in credit risk.

Table 22 shows the significant drivers of credit risk, IRB RWA movements (excluding counterparty credit risk and standardised credit risk) from 31 December 2024.

Table 22: RWEA flow statements of credit risk exposures under the IRB approach (UK CR8)

Risk-weighted
assets1
\$million		 Regulatory capital
requirement1
\$million
As at 31 December 2024 124,043 9,923
Asset size (6,940) (555)
Asset quality 2,248 180
Model updates 419 34
Methodology and policy – –
Acquisitions and disposals (114) (9)
Foreign exchange movements 2,372 190
Other – –
1 As at 30 September 2025 122,028 9,762
2 Asset size 972 78
3 Asset quality (735) (59)
4 Model updates (186) (15)
5 Methodology and policy – –
6 Acquisitions and disposals (287) (23)
7 Foreign exchange movements 228 18
8 Other – –
9 As at 31 December 2025 122,021 9,762

1 The total in this table has been represented to show credit risk under the AIRB approach excluding securitisation and non-credit obligation assets and hence will not directly reconcile to the credit risk AIRB RWAs in table 21.

IRB credit RWA decreased by \$2.0 billion from 31 December 2024 driven by:

• \$6.0 billion net decrease in asset size.

• \$2.6 billion increase from foreign currency translation.

• \$1.5 billion increase due to a deterioration in asset quality.

2.5 Capital Requirements continued

Table 23 shows the significant drivers of credit counterparty risk under IMM RWA movements from 31 December 2024.

Table 23: RWEA flow statements of CCR exposures under the IMM (UK CCR7)

Risk-weighted
assets1
\$million		 Regulatory capital
requirement1
\$million
As at 31 December 2024 11,322 906
Asset size 51 4
Credit quality of counterparties 17 1
Model updates (IMM only) (1,300) (104)
Methodology and policy (IMM only) – –
Acquisitions and disposals – –
Foreign exchange movements (304) (24)
Other1 – –
1 As at 30 September 2025 9,786 783
2 Asset size 997 80
3 Credit quality of counterparties (111) (9)
4 Model updates (IMM only) – –
5 Methodology and policy (IMM only) – –
6 Acquisitions and disposals – –
7 Foreign exchange movements (5) –
8 Other1 – –
9 As at 31 December 2025 10,667 854

1 RWA efficiencies are disclosed against 'Other'.

Table 24 shows the RWA flow statements of market risk RWA exposures under the Internal Model Approach (IMA) from 31 December 2024.

Table 24: RWA flow statements of market risk exposures under the IMA (UK MR2-B)

Comprehensive Total own funds
VaR SVaR IRC risk measure Other1 Total RWAs requirements
\$million \$million \$million \$million \$million \$million \$million
At 31 December 2024 3,984 5,529 – – 4,960 14,474 1,158
Regulatory adjustment – – – – – – –
RWAs post adjustment at
31 December 2024 3,984 5,529 – – 4,960 14,474 1,158
Movement in risk levels (770) 2,355 – – 29 1,614 129
Model updates/changes – – – – 51 51 4
Methodology and policy – – – – – – –
Acquisitions and disposals – – – – – – –
Foreign exchange movements – – – – – – –
Other – – – – – – –
1 At 30 September 2025 3,214 7,884 – – 5,040 16,139 1,291
1a Regulatory adjustment – – – – – – –
1b RWAs post adjustment at
30 September 2025 3,214 7,884 – – 5,040 16,138 1,291
2 Movement in risk levels (642) (1,485) – – (517) (2,644) (212)
3 Model updates/changes – – – – 12 12 1
4 Methodology and policy – – – – – – –
5 Acquisitions and disposals – – – – – – –
6 Foreign exchange movements – – – – – – –
7 Other – – – – – – –
8a At 31 December 2025 2,572 6,399 – – 4,536 13,507 1,081
8b Regulatory adjustment – – – – – – –
8 RWAs post adjustment at
31 December 2025 2,572 6,399 – – 4,536 13,507 1,081

1 Other IMA capital add-ons for market risks not fully captured in either VaR or SVar. More details on Risks not in VaR can be found in the Group's Year End Report 2025 on page 278.

Market risk RWA under an IMA approach decreased by \$1.0 billion from 31 December 2024 driven by a \$1.4 billion decrease in VaR from positions in the Rates business.

2.6 Leverage ratio

UK banks are currently subject to a minimum leverage ratio of 3.25 per cent. In addition, a supplementary leverage ratio buffer is applicable, set at 35 per cent of the corresponding G-SII capital buffer and the countercyclical capital buffer. Following the FPC's recommendation to the PRA to exclude qualifying claims on central bank exposures from the leverage exposure measure in the UK leverage ratio framework, and the corresponding waiver granted by the PRA, the Group has been reporting the leverage ratio on a UK basis (excluding qualifying claims on central banks exposures) from March 2017.

In October 2021, the PRA published a policy statement outlining changes to the leverage ratio framework. The UK's minimum leverage ratio requirement is maintained at 3.25 per cent and must be met by at least 75 per cent of CET1. Additional buffers based on the countercyclical and global systemically important bank (G'SIB') buffers are set at 35 per cent of their risk-weighted equivalent and must be met with 100 per cent of CET1. Firms who breach their leverage ratio buffers will not face any capital distribution restrictions. The exposure value of derivative contracts will be based on the standardised approach to counterparty credit risk, whilst central bank reserves continue to be excluded from the leverage ratio exposure measure. The rules came into force on 1 January 2022.

At 31 December 2025, the Group's current minimum requirement inclusive of leverage buffers was 3.7 per cent:

  • i The minimum 3.25 per cent
  • ii A 0.35 per cent G-SII leverage ratio buffer and
  • iii A 0.1 per cent countercyclical capital leverage ratio buffer, based on FY 2025 countercyclical capital buffer rates

The Group's leverage ratio, which excludes qualifying claims on central banks, was 4.7 per cent at FY 2025, which was above the current minimum requirement of 3.7 per cent. The leverage ratio was 11 basis points lower than FY 2024. Leverage exposure increased by \$69.8 billion from increase in Loans and advances and other assets of \$85.2 billion, an increase in Derivatives of \$3.7 billion partly offset by decrease in claims on central banks of \$16.9 billion, decrease in Off-balance sheet items of \$1.3 billion, and decrease in asset amounts deducted in determining Tier 1 capital (Leverage) of \$0.8 billion. Tier 1 capital increased by \$2.3 billion as CET1 capital increased by \$1.2 billion and AT1 capital increased by \$1.0 billion following the issuance of \$2.0 billion partly offset by the redemption of \$1.0 billion AT1 securities.

Table 25: Leverage ratio

31.12.25
\$million		 30.09.25
\$million		 31.12.24
\$million
Tier 1 capital (end point) 43,949 43,109 41,672
Leverage exposure 938,190 936,824 868,344
Leverage ratio 4.7% 4.6% 4.8%
Leverage exposure quarterly average 949,214 933,449 894,296
Leverage ratio quarterly average 4.6% 4.6% 4.7%
Countercyclical leverage ratio buffer 0.1% 0.1% 0.1%
G-SII additional leverage ratio buffer 0.4% 0.4% 0.4%

2.6 Leverage ratio continued

CRR leverage ratio

Table 26, 27 and 28 present the leverage ratio based on CRR basis requirements.

Table 26: LRSum: Summary reconciliation of accounting assets and leverage ratio exposures (UK LR1)

2025
\$million		 2024
\$million
1 Total assets as per published financial statements 919,955 849,688
2 Adjustment for entities which are consolidated for accounting purposes but are outside the
scope of prudential consolidation		 2,192 1,390
3 (Adjustment for securitised exposures that meet the operational requirements for the
recognition of risk transference)		 – –
4 (Adjustment for exemption of exposures to central banks) (94,673) (77,730)
5 (Adjustment for fiduciary assets recognised on the balance sheet pursuant to the applicable
accounting framework but excluded from the total exposure measure in accordance with
point (i) of Article 429a(1) of the CRR)		 – –
6 Adjustment for regular-way purchases and sales of financial assets subject to trade
date accounting		 (4,254) (84)
7 Adjustment for eligible cash pooling transactions – –
8 Adjustment for derivative financial instruments 8,839 (10,536)
9 Adjustment for securities financing transactions (SFTs) 6,715 4,198
10 Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of
off-balance sheet exposures)		 117,341 118,607
11 (Adjustment for prudent valuation adjustments and specific and general provisions which
have reduced tier 1 capital (leverage))		 (1,291) (1,326)
UK-11a (Adjustment for exposures excluded from the total exposure measure in accordance with
point (c) of Article 429a(1) of the CRR)		 – –
UK-11b (Adjustment for exposures excluded from the total exposure measure in accordance with
point (j) of Article 429a(1) of the CRR)		 – –
12 Other adjustments1 (16,634) (15,863)
13 Total exposure measure 938,190 868,344

1 Other Adjustments include Cash Collateral posted \$(10,011) million, Tier-1 Capital deduction other than disclosed in above row 11 \$(6,793) million, DTL \$170 million.

2.6 Leverage ratio continued Table 27: LRCom: Leverage ratio common disclosure (UK LR2)

2025
\$million		 2024
\$million
On-balance sheet exposures (excluding derivatives and SFTs)
1 On-balance sheet items (excluding derivatives, SFTs, but including collateral) 756,185 670,948
2 Gross-up for derivatives collateral provided, where deducted from the balance sheet assets
pursuant to the applicable accounting framework		 – –
3 (Deductions of receivables assets for cash variation margin provided in derivatives
transactions)		 (10,011) (10,169)
4 (Adjustment for securities received under securities financing transactions that are
recognised as an asset)		 – –
5 (General credit risk adjustments to on-balance sheet items) – –
6 (Asset amounts deducted in determining tier 1 capital (leverage)) (8,084) (7,247)
7 Total on-balance sheet exposures (excluding derivatives and SFTs) 738,090 653,532
Derivative exposures
8 Replacement cost associated with SA-CCR derivatives transactions (i.e. net of eligible cash
variation margin)		 17,685 22,550
UK-8a Derogation for derivatives: replacement costs contribution under the simplified standardised
approach		 – –
9 Add-on amounts for potential future exposure associated with SA-CCR derivatives
transactions		 59,656 52,346
UK-9a Derogation for derivatives: potential future exposure contribution under the simplified
standardised approach		 – –
UK-9b Exposure determined under the original exposure method – –
10 (Exempted CCP leg of client-cleared trade exposures) (SA-CCR) (5,324) (6,035)
UK-10a (Exempted CCP leg of client-cleared trade exposures) (simplified standardised approach) – –
UK-10b (Exempted CCP leg of client-cleared trade exposures) (original exposure method) – –
11 Adjusted effective notional amount of written credit derivatives 24,572 97,504
12 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) (21,968) (95,429)
13 Total derivatives exposures 74,621 70,936
Securities financing transaction exposures
14 Gross SFT assets (with no recognition of netting), after adjustment for sales accounting
transactions		 160,963 137,115
15 (Netted amounts of cash payables and cash receivables of gross SFT assets) (64,868) (38,314)
16 Counterparty credit risk exposure for SFT assets 6,715 4,198
UK-16a Derogation for SFTs: counterparty credit risk exposure in accordance with Articles 429e(5)
and 222 of the CRR		 – –
17 Agent transaction exposures – –
UK-17a (Exempted CCP leg of client-cleared SFT exposures) – –
18 Total securities financing transaction exposures 102,811 102,999
Other off-balance sheet exposures
19 Off-balance sheet exposures at gross notional amount 447,113 468,134
20 (Adjustments for conversion to credit equivalent amounts) (329,772) (349,527)
21 (General provisions deducted in determining tier 1 capital (leverage) and specific provisions
associated with off-balance sheet exposures)		 – –
22 Off-balance sheet exposures 117,341 118,607
Excluded exposures
UK-22a (Exposures excluded from the total exposure measure in accordance with point (c) of Article
429a(1) of the CRR)		 – –
UK-22b (Exposures exempted in accordance with point (j) of Article 429a(1) of the CRR (on- and
off- balance sheet))		 – –
UK-22g (Excluded excess collateral deposited at triparty agents) – –
UK-22k (Total exempted exposures) – –
Capital and total exposures
23 Tier 1 capital (leverage) 43,949 41,672
24 Total exposure measure including claims on central banks 1,032,863 946,074
UK-24a (-) Claims on central banks excluded (94,673) (77,730)

2.6 Leverage ratio continued

2025
\$million		 2024
\$million
UK-24b Total exposure measure excluding claims on central banks 938,190 868,344
Leverage ratio
25 Leverage ratio excluding claims on central banks (%) 4.7% 4.8%
UK-25a Fully loaded ECL accounting model leverage ratio excluding claims on central banks (%) 4.7% 4.8%
UK-25b Leverage ratio excluding central bank reserves as if the temporary treatment of unrealised
gains and losses measured at fair value through other comprehensive income had not been		 4.7%
UK-25c applied (%)
Leverage ratio including claims on central banks (%)		 4.3% 4.8%
4.4%
26 Regulatory minimum leverage ratio requirement (%) 3.3% 3.3%
Additional leverage ratio disclosure requirements – leverage ratio buffers
27 Leverage ratio buffer (%) 0.5% 0.5%
UK-27a Of which: G-SII or O-SII additional leverage ratio buffer (%) 0.4% 0.4%
UK-27b Of which: countercyclical leverage ratio buffer (%) 0.1% 0.1%
Additional leverage ratio disclosure requirements – disclosure of mean values
28 Mean of daily values of gross SFT assets, after adjustment for sale accounting transactions
and netted of amounts of associated cash payables and cash receivable		 100,155 101,902
29 Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions
and netted of amounts of associated cash payables and cash receivables		 96,096 98,801
UK-31 Average total exposure measure including claims on central banks 1,042,790 982,761
UK-32 Average total exposure measure excluding claims on central banks 949,214 894,296
UK-33 Average leverage ratio including claims on central banks 4.2% 4.2%
UK-34 Average leverage ratio excluding claims on central banks 4.6% 4.7%

Table 28: LRSpl: Split-up of on balance sheet exposures (excluding derivatives, SFTs and exempted exposures) (UK LR3)

2025
\$million		 2024
\$million
UK-1 Total on-balance sheet exposures (excluding derivatives, SFTs, and exempted exposures),
of which: 746,174 660,779
UK-2 Trading book exposures 125,923 88,194
UK-3 Banking book exposures, of which: 620,251 572,585
UK-4 Covered bonds 3,056 3,901
UK-5 Exposures treated as sovereigns 228,715 204,143
UK-6 Exposures to regional governments, MDB, international organisations and PSE not treated
as sovereigns 17,098 15,595
UK-7 Institutions 48,577 49,414
UK-8 Secured by mortgages of immovable properties 88,624 83,859
UK-9 Retail exposures 28,307 28,845
UK-10 Corporates 146,503 129,903
UK-11 Exposures in default 6,658 5,761
UK-12 Other exposures (e.g. equity, securitisations, and other non-credit obligation assets) 52,713 51,164

3. Credit risk

Our approach to credit risk can be found in the Risk management approach section in the 2025 Annual Report and Accounts on page 233 to 234.

3.1. Internal Ratings Based Approach (IRB) to credit risk

The Group uses the Advanced IRB approach to measure credit risk for the majority of its portfolios. This allows the Group to use its own internal estimates of Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) to determine an asset risk-weighting. The IRB models cover 82 per cent of the Group's credit RWA (2024: 78 per cent).

PD is the likelihood that an obligor will default on an obligation within the next 12 months. Banks utilising the IRB approach must assign an internal PD to all borrowers. EAD is the expected amount of exposure to a particular facility at the point of default; it is modelled based on historical experience to determine the amount that is expected to be further drawn down from the undrawn portion of a facility. LGD is the percentage of EAD that a lender expects to lose in the event of obligor default. EAD and LGD are measured based on historical experience in economic downturn periods, if these were more conservative than the long-run average, else the long-run average is used.

All assets under the Advanced IRB approach have internal PD, LGD and EAD models developed to support the credit decision making process as well as RWA and capital estimate. RWA under the Advanced IRB approach is determined by regulatory specified formulae dependent on the Group's estimates of PD, LGD, EAD, and residual maturity. The development, use and governance of Corporate and Investment Banking (CIB) and Wealth and Retail Banking (WRB) models under the Advanced IRB approach are covered in more detail in Section 3.3 Internal Ratings Based models.

3.2. Standardised Approach to credit risk

The Standardised Approach is applied to portfolios that are classified as permanently exempted from the IRB approach, and those portfolios for which an IRB approach has yet to be developed, for instance due to insufficient data availability.

CRR Article 150 allows IRB banks to elect to permanently exclude certain exposures from the IRB approach and use the Standardised Approach. These are known as permanent exemptions.

The permanent exemptions apply to:

  • Africa all retail portfolios
  • Private Banking
  • Private Equity
  • Development organisations
  • Jordan
  • Purchased receivables
  • Hedge funds
  • Exposures to, or guaranteed by, central governments and central banks of EEA States, provided they are eligible for a zero per cent risk weighting under the Standardised Approach

The Standardised Approach measures credit risk pursuant to fixed risk-weights and is the least sophisticated of the capital requirement calculation methodologies under Basel III. The risk-weight applied under the Standardised Approach is prescribed within the CRR and is based on the asset class to which the exposure is assigned.

3.3 Internal Ratings Based models

Model Governance

All IRB models are developed by independent model analytics teams aligned to the CIB and WRB business functions. Both new models and changes to the existing models, are subject to independent validation by Group Model Validation (GMV), which is part of the Model Risk Management function, a separate department within Group Risk, and are reviewed and approved by the Credit Model Assessment Committee (CMAC) and the Model Risk Committee (MRC) based on materiality. The Model Risk Policy and Governance team (MRPG) was established to provide independent oversight of model risk governance activities including model issue reporting, inventory management and model risk appetite reporting.

The performance of existing IRB models, including metrics on actual against predicted, is monitored regularly by the Model Monitoring teams and reported to CMAC on a quarterly basis. GMV independently reviews model performance monitoring results based on applicable standards. In addition, existing models are subject to annual independent validation by GMV. The Group Model Risk Policy and associated standards set out internal requirements and operating guidelines for model development, validation, and performance monitoring. The Board Risk Committee is updated on the status of IRB (and other) models on a semi-annual basis. Any concerns on IRB model performance or material model issues impacting IRB models are also captured as part of Risk Appetite monitoring, reported to the Board Risk Committee monthly. Rating overrides are tracked, and threshold breaches are escalated to the relevant risk management committees, and model issues are tracked and reported at CMAC. An annual self-assessment on IRB models' regulatory compliance is carried out as part of the Senior Management Function attestation.

The Group has a strong monitoring and governance framework in place to identify and mitigate model performance issues. While most models are conservative and over predict PD, LGD and EAD, in cases where the models under predict, a post model adjustment may be taken to ensure adequate capitalisation, in addition to having a remediation plan in place.

Group Internal Audit is responsible for carrying out independent reviews on the effectiveness of the controls supporting IRB models' development, validation, approval and monitoring.

Probability of Default

PDs are estimated based on one of the three industry standard approaches, namely the good-bad approach where a sufficient number of internal defaults is available, the shadow-bond approach where there are no sufficient internal defaults but there are external ratings for a large number of obligors, or the constrained expert judgement approach where neither internal defaults nor external ratings are available.

In CIB, the largest portfolios are rated based on the shadow bond approach (Sovereigns, Large Corporates) or the good-bad approach (Banks, Mid Corporates). Central governments and central banks are rated using the Sovereign model. Non-bank financial institutions are rated using one of six constrained expert judgement models depending on their line of business, with the largest being Funds, Finance & Leasing, and Broker Dealers. Corporate clients are differentiated by their annual sales turnover and rated using one of the corporate models unless they are commodity buyers and traders (for which a separate model has been developed) or are classified under Specialised Lending or Supply Chain Finance. Excluding the Sovereign model, all other CIB IRB PD models are subject to the 0.03 per cent regulatory PD floor.

Within CIB, each client is assigned a credit grade, regardless of whether the client is under standardised or IRB capital estimate method, and exposures to each client or client group are aggregated consistently with the regulatory Large Exposures requirements.

The CIB PD models are calibrated following a hybrid through-the-cycle rating philosophy based on historical data that includes a full economic cycle.

Estimates of PD are computed as of 1 January 2025 (including additional exposures that are valid January through March) and are compared with default observations through 31 December 2025.

PD models for retail clients under each asset class are developed based on a combination of product and geography following the good-bad approach.

The same PD modelling approach is taken across the four key retail client product types: Residential Mortgages, Credit Cards (Qualifying Revolving Retail), Personal Instalment Loans (Other Retail) and Retail SME (Other Retail). The approach is based on using the country and product specific application scores for new to bank clients and behaviour scores for existing clients. The scorecards are built using demographic information, credit bureau data, and observed client performance data (for behaviour scores). Statistical techniques are used to develop a relationship between this information and the probability of default. The scorecards are used to make credit decisions. All retail client PD models are built and validated using internal default data.

3.3 Internal Ratings Based models continued Loss Given Default

The CIB LGD model is a component-based model reflecting the Bank's recovery and workout process, which takes into account risk drivers such as portfolio segment, jurisdiction, product, and collateral attached to the exposure. The model is calibrated based on downturn experience if that is more conservative than the long-run experience. Regulatory floors are applied to both unsecured and secured facilities (except for those secured by cash) if the LGD parameters are based on fewer than 20 defaults or by regulatory mandate (Sovereign, Financial Institutions, and Covered Bonds). This is in accordance with the PRA's lowdefault framework which states that where there are insufficient defaults to estimate a parameter at granular level an LGD floor must be applied.

The calculation of realised versus predicted LGD is affected by the fact that it may take a number of years for the workout process to be completed. As such, an observed recovery value cannot be assigned to the majority of the 2025 defaults, making it meaningless to compare realised versus predicted outcomes in a manner similar to that for PD and EAD.

To address this for corporates and institutions we have adopted an approach based on a four-year rolling period of predicted and realised LGD, which for the current reporting year includes 2022 to 2025 defaults that have completed their workout process as at the end of 2025. This approach compares the four-year rolling predicted LGD, providing the predicted outcome of these resolved defaults one year prior to default, against the realised LGD for the same set of defaults. These two figures are fully comparable, thereby providing a meaningful assessment of the LGD model's performance.

Under this approach, realised LGD values for Corporates are lower than the predicted. This is explained by the regulatory guidance to calibrate LGD models to downturn conditions. There were no defaults that had resolved in the previous four years for Central Governments, Central Banks and Institutions.

LGDs for retail portfolios follow two approaches:

  • i LGDs for unsecured products are based on historical loss experience of defaults during a downturn; these are portfoliospecific LGD estimates segmented by default status (including restructuring)
  • ii LGDs for secured products are parameter-based estimates mainly driven by how the default is resolved (e.g., cure, sale, charge-off). Key LGD parameters are differentiated by segments such as loan-to-value, property type and default status. These parameters are calibrated based on the portfolio's downturn experience

Retail LGD model monitoring considers defaults from a cohort and the actual recoveries up to the end of the workout window.

Under this approach, realised LGD values for all retail asset classes are lower than predicted, primarily due to the regulatory guidance to calibrate LGD models to downturn conditions. This is most evident in the mortgage portfolios, where predicted LGD values include a significant assumed reduction in property values.

Exposure at Default

EAD takes into consideration the potential drawdown of a commitment as an obligor moves towards default by estimating the Credit Conversion Factor (CCF) of undrawn commitments.

EAD for sovereign, corporate and institutional clients is determined by product but on a global basis, while the commercial and retail EAD is dependent on the combination of country and product.

The sovereign, corporate and institutional EAD model has adopted the momentum approach to estimate the CCF, with the type of facility and the level of utilisation being key drivers of CCF. The model is calibrated based on the Bank's internal downturn experience and CCF is floored at 0 percent.

EAD for retail products differs between revolving products and term products. For revolving products, EAD is computed by estimating the CCF of undrawn commitments, with a floor at 0 percent. For term products, EAD is set at the outstanding balance plus any undrawn portion. All the retail client EAD models are developed and validated using internal default data.

The comparison of realised versus predicted EAD is summarised in the ratio of EAD of assets that defaulted in a particular year to the outstanding amount at the time of default. The ratios for all models are larger than one, indicating that the predicted EAD is higher than the realised outstanding amount at default. This is explained by the regulatory guidance to assign conservatism to the CCF and to calibrate the models to downturn conditions, as well as by the impact of management action leading to a reduction in actual exposure prior to default.

The estimates provided in the table are before the application of any conservative adjustment.

Table 29: IRB approach – Back-testing of PD per exposure class for central governments or central banks (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 84 – – 0.03 0.05 –
0.00 to <0.10 73 – – 0.02 0.03 –
0.10 to <0.15 11 – – 0.13 0.13 –
0.15 to <0.25 6 – – 0.22 0.22 –
0.25 to <0.50 3 – – 0.39 0.39 –
0.50 to <0.75 4 – – – 0.59 –
0.75 to <2.50 24 1 4.17 1.62 1.24 –
0.75 to <1.75 21 1 4.76 1.00 1.12 –
1.75 to <2.50 3 – – 2.03 2.03 –
2.50 to <10.00 26 – – 4.83 4.02 1.38
2.50 to <5.00 24 – – 3.58 3.76 2.11
5.00 to <10.00 2 – – 8.01 7.05 –
10.00 to <100.00 12 – – 10.54 20.70 10.66
10.00 to <20.00 8 – – 10.54 15.61 5.00
20.00 to <30.00 1 – – – 24.55 10.00
30.00 to <100.00 3 – – – 33.00 25.00
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 77 – – 0.03 0.05 –
0.00 to <0.10 68 – – 0.02 0.04 –
0.10 to <0.15 9 – – 0.15 0.13 –
0.15 to <0.25 6 – – 0.22 0.22 –
0.25 to <0.50 1 – – 0.39 0.39 –
0.50 to <0.75 9 – – – 0.56 –
0.75 to <2.50 21 – – 1.28 1.22 –
0.75 to <1.75 17 – – 1.24 1.02 –
1.75 to <2.50 4 – – 2.03 2.03 –
2.50 to <10.00 25 – – 3.98 4.25 1.38
2.50 to <5.00 22 – – 3.98 3.82 2.11
5.00 to <10.00 4 – – – 7.04 –
10.00 to <100.00 13 – – 21.86 22.81 10.66
10.00 to <20.00 6 – – 17.09 12.32 5.00
20.00 to <30.00 1 – – – 24.55 10.00
30.00 to <100.00 6 – – 33.00 33.00 25.00
100.00 (Default) – – – 100.00 100.00 –

Table 30: IRB approach – Back-testing of PD per exposure class for institutions (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 632 – – 0.05 0.07 0.03
0.00 to <0.10 524 – – 0.04 0.05 –
0.10 to <0.15 108 – – 0.13 0.13 0.22
0.15 to <0.25 115 – – 0.22 0.22 –
0.25 to <0.50 71 – – 0.39 0.39 –
0.50 to <0.75 112 – – 0.52 0.55 –
0.75 to <2.50 196 1 0.51 1.38 1.28 –
0.75 to <1.75 161 1 0.62 1.18 1.12 –
1.75 to <2.50 35 – – 2.03 2.03 –
2.50 to <10.00 119 – – 4.06 4.33 3.10
2.50 to <5.00 102 – – 3.45 3.83 0.61
5.00 to <10.00 17 – – 7.69 7.50 7.06
10.00 to <100.00 52 2 3.95 13.78 21.88 8.35
10.00 to <20.00 32 – – 13.76 15.47 9.63
20.00 to <30.00 1 – – – 24.55 10.00
30.00 to <100.00 19 2 10.53 33.00 33.00 6.96
100.00 (Default) – – – 100.00 100.00 –
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 618 – – 0.05 0.06 0.06
0.00 to <0.10 525 – – 0.04 0.05 0.03
0.10 to <0.15 93 – – 0.13 0.13 0.22
0.15 to <0.25 114 – – 0.22 0.22 –
0.25 to <0.50 71 – – 0.39 0.39 –
0.50 to <0.75 124 – – 0.52 0.56 –
0.75 to <2.50 160 – – 1.30 1.32 0.06
0.75 to <1.75 126 – – 1.19 1.13 0.09
1.75 to <2.50 34 – – 2.03 2.03 –
2.50 to <10.00 144 – – 4.66 4.98 3.10
2.50 to <5.00 89 – – 4.02 3.70 0.61
5.00 to <10.00 55 – – 6.73 7.06 7.06
10.00 to <100.00 61 8 13.11 19.48 26.96 5.73
10.00 to <20.00 18 – – 17.88 12.98 9.63
20.00 to <30.00 1 – – – 24.55 10.00
30.00 to <100.00 42 8 19.05 33.00 33.00 3.15
100.00 (Default) – – – 100.00 100.00 –

2024

Table 31: IRB approach – Back-testing of PD per exposure class for corporates – other (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 4,096 1 0.02 0.07 0.09 0.04
0.00 to <0.10 2,753 1 0.04 0.05 0.07 0.05
0.10 to <0.15 1,343 – – 0.13 0.13 0.02
0.15 to <0.25 1,711 1 0.06 0.22 0.22 0.11
0.25 to <0.50 1,208 – – 0.39 0.39 0.20
0.50 to <0.75 2,121 – – 0.57 0.57 0.29
0.75 to <2.50 3,142 9 0.29 1.36 1.42 0.65
0.75 to <1.75 2,333 7 0.30 1.15 1.22 0.64
1.75 to <2.50 809 2 0.25 2.03 2.00 0.69
2.50 to <10.00 1,438 13 0.90 4.31 4.30 1.75
2.50 to <5.00 1,062 9 0.85 3.73 3.52 1.59
5.00 to <10.00 376 4 1.06 7.33 6.52 2.38
10.00 to <100.00 1,382 22 1.59 20.19 16.71 4.13
10.00 to <20.00 1,251 11 0.88 13.88 13.89 2.71
20.00 to <30.00 51 1 1.96 24.56 24.45 13.40
30.00 to <100.00 80 10 12.50 33.03 56.29 17.05
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 3,609 1 0.03 0.07 0.09 0.03
0.00 to <0.10 2,482 – – 0.06 0.07 0.05
0.10 to <0.15 1,128 1 0.09 0.13 0.13 –
0.15 to <0.25 1,856 2 0.11 0.22 0.22 0.10
0.25 to <0.50 1,303 1 0.08 0.39 0.39 0.20
0.50 to <0.75 2,047 1 0.05 0.56 0.58 0.29
0.75 to <2.50 2,928 9 0.31 1.29 1.40 0.69
0.75 to <1.75 2,207 5 0.23 1.14 1.20 0.69
1.75 to <2.50 723 4 0.55 2.03 2.01 0.68
2.50 to <10.00 1,367 20 1.46 4.29 4.44 1.85
2.50 to <5.00 1,050 13 1.24 3.66 3.60 1.68
5.00 to <10.00 317 7 2.21 6.83 7.21 2.54
10.00 to <100.00 1,656 20 1.21 17.52 17.40 4.92
10.00 to <20.00 1,378 6 0.44 14.98 13.41 2.99
20.00 to <30.00 58 – – 24.55 24.48 18.49
30.00 to <100.00 222 14 6.31 33.26 40.38 20.67
100.00 (Default) – – – 100.00 100.00 –

Table 32: IRB approach – Back-testing of PD per exposure class for corporates – specialised lending (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 201 – – 0.09 0.09 0.14
0.00 to <0.10 134 – – 0.07 0.07 0.11
0.10 to <0.15 67 – – 0.13 0.13 0.13
0.15 to <0.25 190 – – 0.22 0.22 0.82
0.25 to <0.50 83 – – 0.39 0.39 0.69
0.50 to <0.75 129 4 3.10 0.57 0.57 0.86
0.75 to <2.50 120 – – 1.24 1.28 1.51
0.75 to <1.75 99 – – 1.13 1.13 2.04
1.75 to <2.50 21 – – 2.03 2.03 -
2.50 to <10.00 36 1 2.78 4.11 4.59 3.97
2.50 to <5.00 25 – – 3.62 3.47 3.96
5.00 to <10.00 11 1 9.09 6.19 7.13 5.78
10.00 to <100.00 15 1 6.67 13.45 14.97 16.10
10.00 to <20.00 12 – – 10.54 11.16 7.24
20.00 to <30.00 1 – – 24.55 24.55 46.29
30.00 to <100.00 2 1 50.00 – 33.00 30.38
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
Of which number
of obligors
which defaulted
in the year		 Average historical
annual default
rate
%
PD Range % Exposures
weighted
average PD
%		 Average PD
%
0.00 to <0.15 188 1 0.01 0.10 – –
0.00 to <0.10 110 – – 0.07 – –
0.10 to <0.15 78 1 0.01 0.13 – –
0.15 to <0.25 133 – – 0.22 – 0.01
0.25 to <0.50 71 – – 0.39 – 0.01
0.50 to <0.75 118 1 0.01 0.58 0.01 0.01
0.75 to <2.50 115 – – 1.25 0.01 0.02
0.75 to <1.75 87 – – 1.12 0.01 0.02
1.75 to <2.50 28 – – 2.03 0.02 –
2.50 to <10.00 38 – – 3.77 0.04 0.04
2.50 to <5.00 28 – – 3.38 0.03 0.04
5.00 to <10.00 10 – – 6.63 0.07 0.07
10.00 to <100.00 19 2 0.11 25.25 0.15 0.16
10.00 to <20.00 16 – - 11.35 0.12 0.07
20.00 to <30.00 1 1 1.00 24.55 0.25 0.35
30.00 to <100.00 2 1 0.50 33.00 0.33 0.32
100.00 (Default) – – – 100.00 100.00 –

Table 33: IRB approach – Back-testing of PD per exposure class for corporates – SME (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 14 – – 0.08 0.09 –
0.00 to <0.10 9 – – 0.04 0.07 –
0.10 to <0.15 5 – – 0.13 0.13 –
0.15 to <0.25 188 – – 0.23 0.23 0.15
0.25 to <0.50 102 – – 0.40 0.41 0.49
0.50 to <0.75 467 3 0.64 0.64 0.62 0.59
0.75 to <2.50 801 12 1.50 1.47 1.52 1.13
0.75 to <1.75 560 7 1.25 1.29 1.27 0.95
1.75 to <2.50 241 5 2.07 2.08 2.11 1.57
2.50 to <10.00 1,394 38 2.73 4.62 5.10 1.99
2.50 to <5.00 864 18 2.08 3.62 3.81 1.54
5.00 to <10.00 530 20 3.77 6.24 7.20 2.77
10.00 to <100.00 868 89 10.25 15.98 13.69 6.66
10.00 to <20.00 856 88 10.28 14.06 13.41 6.30
20.00 to <30.00 3 – – 24.48 24.55 9.24
30.00 to <100.00 9 1 11.11 33.00 36.93 23.51
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 7 – – 0.07 0.12 –
0.00 to <0.10 2 – – 0.06 0.09 –
0.10 to <0.15 5 – – 0.13 0.13 –
0.15 to <0.25 236 – – 0.23 0.23 0.19
0.25 to <0.50 127 1 0.79 0.41 0.41 0.46
0.50 to <0.75 551 5 0.91 0.62 0.61 0.41
0.75 to <2.50 886 20 2.26 1.35 1.52 0.77
0.75 to <1.75 620 15 2.42 1.17 1.26 0.52
1.75 to <2.50 266 5 1.88 2.09 2.12 1.37
2.50 to <10.00 1,519 45 2.96 4.73 5.07 1.83
2.50 to <5.00 947 19 2.01 3.71 3.79 1.51
5.00 to <10.00 572 26 4.55 6.93 7.19 2.40
10.00 to <100.00 713 55 7.71 14.64 13.79 6.25
10.00 to <20.00 695 52 7.48 13.63 13.42 5.82
20.00 to <30.00 10 2 20.00 24.55 24.35 7.74
30.00 to <100.00 8 1 12.50 36.76 33.00 28.07
100.00 (Default) – – – 100.00 100.00 –

Table 34: IRB approach – Back-testing of PD per exposure class for retail other – non SME (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 50,515 22 0.04 0.07 0.05 0.03
0.00 to <0.10 43,722 18 0.04 0.06 0.04 0.02
0.10 to <0.15 6,793 4 0.06 0.11 0.11 0.06
0.15 to <0.25 24,328 22 0.09 0.20 0.17 0.13
0.25 to <0.50 28,749 71 0.25 0.37 0.33 0.16
0.50 to <0.75 35,245 95 0.27 0.65 0.68 0.27
0.75 to <2.50 139,303 881 0.63 1.45 1.67 0.77
0.75 to <1.75 82,099 519 0.63 1.25 1.32 0.58
1.75 to <2.50 57,204 362 0.63 2.08 2.17 1.11
2.50 to <10.00 207,098 5,174 2.50 4.40 5.11 1.51
2.50 to <5.00 122,978 1,858 1.51 3.31 3.62 1.15
5.00 to <10.00 84,120 3,316 3.94 7.16 7.31 2.49
10.00 to <100.00 77,632 12,037 15.51 24.36 24.45 12.38
10.00 to <20.00 52,499 3,549 6.76 15.65 13.52 5.30
20.00 to <30.00 10,108 1,633 16.16 25.01 24.07 11.92
30.00 to <100.00 15,025 6,855 45.62 59.99 63.13 29.64
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 61,308 37 0.06 0.06 0.05 0.03
0.00 to <0.10 53,656 30 0.06 0.05 0.04 0.02
0.10 to <0.15 7,652 7 0.09 0.11 0.11 0.05
0.15 to <0.25 39,597 42 0.11 0.18 0.17 0.11
0.25 to <0.50 70,334 115 0.16 0.34 0.34 0.16
0.50 to <0.75 52,520 208 0.40 0.68 0.66 0.25
0.75 to <2.50 227,713 2,806 1.23 1.52 1.61 0.61
0.75 to <1.75 141,654 1,285 0.91 1.31 1.27 0.46
1.75 to <2.50 86,059 1,521 1.77 2.16 2.17 0.89
2.50 to <10.00 276,402 6,072 2.20 4.76 4.59 1.31
2.50 to <5.00 205,317 3,345 1.63 3.45 3.66 1.00
5.00 to <10.00 71,085 2,727 3.84 7.32 7.25 2.15
10.00 to <100.00 73,455 12,799 17.42 26.63 28.87 10.83
10.00 to <20.00 41,501 3,113 7.50 13.46 13.70 4.72
20.00 to <30.00 11,390 1,638 14.38 23.83 24.16 11.07
30.00 to <100.00 20,564 8,048 39.14 61.85 62.09 26.06
100.00 (Default) – – – 100.00 100.00 –

Table 35: IRB approach – Back-testing of PD per exposure class for retail other – SME (fixed PD scale) (UK CR9)

2025
the end of previous year Number of obligors at
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 917 2 0.22 0.10 0.09 0.15
0.00 to <0.10 566 2 0.35 0.07 0.06 0.07
0.10 to <0.15 351 – – 0.13 0.13 0.28
0.15 to <0.25 938 2 0.21 0.20 0.19 0.40
0.25 to <0.50 1,527 6 0.39 0.38 0.38 0.50
0.50 to <0.75 1,785 19 1.06 0.63 0.62 0.73
0.75 to <2.50 9,210 225 2.44 1.61 1.49 1.32
0.75 to <1.75 6,632 134 2.02 1.35 1.28 1.13
1.75 to <2.50 2,578 91 3.53 2.03 2.04 1.88
2.50 to <10.00 6,879 250 3.63 4.27 4.79 2.54
2.50 to <5.00 4,396 150 3.41 3.47 3.54 2.15
5.00 to <10.00 2,483 100 4.03 6.87 6.99 3.17
10.00 to <100.00 2,253 365 16.20 21.63 23.63 11.26
10.00 to <20.00 1,695 99 5.84 13.15 13.08 4.45
20.00 to <30.00 147 25 17.01 26.17 24.40 17.04
30.00 to <100.00 411 241 58.64 67.53 66.87 41.68
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 834 1 0.12 0.09 0.08 0.14
0.00 to <0.10 516 – – 0.07 0.06 0.10
0.10 to <0.15 318 1 0.31 0.12 0.13 0.22
0.15 to <0.25 1,245 8 0.64 0.19 0.19 0.31
0.25 to <0.50 2,007 27 1.35 0.38 0.38 0.25
0.50 to <0.75 2,322 31 1.34 0.62 0.62 0.52
0.75 to <2.50 9,201 238 2.59 1.57 1.45 0.96
0.75 to <1.75 6,872 149 2.17 1.36 1.25 0.82
1.75 to <2.50 2,329 89 3.82 2.00 2.06 1.37
2.50 to <10.00 6,721 269 4.00 4.49 4.97 2.11
2.50 to <5.00 4,069 137 3.37 3.52 3.63 1.80
5.00 to <10.00 2,652 132 4.98 6.83 7.02 2.64
10.00 to <100.00 2,476 352 14.22 25.27 22.73 10.56
10.00 to <20.00 1,914 105 5.49 12.94 13.17 4.31
20.00 to <30.00 148 27 18.24 25.28 24.52 15.54
30.00 to <100.00 414 220 53.14 67.83 66.27 36.42
100.00 (Default) – – – 100.00 100.00 –

Table 36: IRB approach – Back-testing of PD per exposure class for retail – secured by real estate property – Non SME (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year		 Average historical
annual default
rate
%
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%
0.00 to <0.15 208,995 309 0.15 0.07 0.06 0.06
0.00 to <0.10 188,341 251 0.13 0.06 0.05 0.03
0.10 to <0.15 20,654 58 0.28 0.12 0.12 0.17
0.15 to <0.25 21,163 49 0.23 0.19 0.20 0.30
0.25 to <0.50 15,268 77 0.50 0.37 0.37 0.42
0.50 to <0.75 24,975 106 0.42 0.63 0.60 0.81
0.75 to <2.50 13,874 137 0.99 1.34 1.29 0.68
0.75 to <1.75 10,888 83 0.76 1.11 1.08 0.55
1.75 to <2.50 2,986 54 1.81 2.06 2.06 1.24
2.50 to <10.00 3,771 206 5.46 4.63 5.00 1.84
2.50 to <5.00 2,251 92 4.09 3.44 3.58 1.59
5.00 to <10.00 1,520 114 7.50 6.97 7.10 2.30
10.00 to <100.00 2,344 549 23.42 37.28 32.85 17.36
10.00 to <20.00 1,001 62 6.19 13.46 13.39 3.78
20.00 to <30.00 252 39 15.48 24.23 24.68 16.99
30.00 to <100.00 1,091 448 41.06 52.40 52.50 35.86
100.00 (Default) – – – 100.00 100.00 –
Number of obligors at
the end of previous year		 Exposures
weighted
average PD
%		 Average historical
annual default
rate
%
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Average PD
%
0.00 to <0.15 245,186 425 0.17 0.07 0.06 0.04
0.00 to <0.10 221,151 310 0.14 0.06 0.05 0.03
0.10 to <0.15 24,035 115 0.48 0.12 0.12 0.07
0.15 to <0.25 22,831 73 0.32 0.19 0.20 0.34
0.25 to <0.50 16,091 262 1.63 0.35 0.36 0.10
0.50 to <0.75 25,991 752 2.89 0.61 0.61 0.24
0.75 to <2.50 14,919 200 1.34 1.34 1.30 0.55
0.75 to <1.75 11,721 146 1.25 1.11 1.09 0.39
1.75 to <2.50 3,198 54 1.69 2.08 2.08 1.27
2.50 to <10.00 4,024 185 4.60 4.75 4.92 1.06
2.50 to <5.00 2,500 97 3.88 3.48 3.59 0.82
5.00 to <10.00 1,524 88 5.77 7.02 7.10 1.76
10.00 to <100.00 2,467 573 23.23 37.32 32.21 15.24
10.00 to <20.00 1,099 100 9.10 13.72 13.41 2.94
20.00 to <30.00 250 44 17.60 24.41 24.79 14.94
30.00 to <100.00 1,118 429 38.37 53.28 52.34 38.96
100.00 (Default) – – – 100.00 100.00 –

2024

Table 37: IRB approach – Back-testing of PD per exposure class for retail – secured by real estate property – SME (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 538 – – 0.10 0.09 0.04
0.00 to <0.10 308 – – 0.08 0.07 0.04
0.10 to <0.15 230 – – 0.13 0.13 0.04
0.15 to <0.25 270 2 0.74 0.18 0.18 0.25
0.25 to <0.50 275 1 0.36 0.39 0.38 0.33
0.50 to <0.75 289 1 0.35 0.62 0.61 0.23
0.75 to <2.50 500 1 0.20 1.49 1.29 0.54
0.75 to <1.75 413 – – 1.15 1.12 0.43
1.75 to <2.50 87 1 1.15 2.20 2.10 1.02
2.50 to <10.00 166 2 1.20 5.44 4.74 1.92
2.50 to <5.00 75 2 2.67 3.77 3.15 1.38
5.00 to <10.00 91 – – 6.90 6.06 3.42
10.00 to <100.00 55 8 14.55 16.80 26.10 13.35
10.00 to <20.00 22 – – 13.95 14.74 2.78
20.00 to <30.00 26 4 15.38 26.50 26.62 14.51
30.00 to <100.00 7 4 57.14 49.48 59.87 30.69
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 495 – – 0.10 0.09 0.06
0.00 to <0.10 298 – – 0.07 0.06 0.06
0.10 to <0.15 197 – – 0.13 0.13 0.08
0.15 to <0.25 259 2 0.77 0.18 0.18 0.13
0.25 to <0.50 299 2 0.67 0.38 0.38 0.25
0.50 to <0.75 319 – – 0.60 0.61 0.31
0.75 to <2.50 676 2 0.30 1.39 1.33 0.66
0.75 to <1.75 577 2 0.35 1.17 1.21 0.53
1.75 to <2.50 99 – – 2.16 2.06 1.25
2.50 to <10.00 211 3 1.42 4.84 4.74 2.30
2.50 to <5.00 160 1 0.63 3.13 3.84 1.84
5.00 to <10.00 51 2 3.92 5.93 7.54 3.44
10.00 to <100.00 71 6 8.45 20.38 25.24 14.64
10.00 to <20.00 33 – – 15.01 13.12 3.80
20.00 to <30.00 28 2 7.14 26.56 26.50 14.78
30.00 to <100.00 10 4 40.00 64.21 61.67 27.55
100.00 (Default) – – – 100.00 100.00 –

Table 38: IRB approach – Back-testing of PD per exposure class for retail – qualifying revolving (fixed PD scale) (UK CR9)

2025
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 912,958 587 0.06 0.08 0.07 0.08
0.00 to <0.10 716,953 403 0.06 0.07 0.06 0.08
0.10 to <0.15 196,005 184 0.09 0.11 0.12 0.11
0.15 to <0.25 163,867 440 0.27 0.18 0.21 0.25
0.25 to <0.50 168,857 787 0.47 0.34 0.33 0.50
0.50 to <0.75 195,245 708 0.36 0.67 0.66 0.36
0.75 to <2.50 579,569 11,467 1.98 1.39 1.53 1.00
0.75 to <1.75 436,486 7,452 1.71 1.29 1.34 0.88
1.75 to <2.50 143,083 4,015 2.81 2.12 2.11 1.35
2.50 to <10.00 540,560 24,884 4.60 4.10 4.77 1.89
2.50 to <5.00 341,873 12,699 3.71 2.98 3.50 1.36
5.00 to <10.00 198,687 12,185 6.13 7.07 6.95 3.17
10.00 to <100.00 134,559 32,726 24.32 22.61 28.04 13.16
10.00 to <20.00 81,278 8,393 10.33 13.93 13.59 5.76
20.00 to <30.00 21,167 4,512 21.32 23.72 23.92 14.92
30.00 to <100.00 32,114 19,821 61.72 56.12 67.31 27.98
100.00 (Default) – – – 100.00 100.00 –
2024
Number of obligors at
the end of previous year
PD Range % Of which number
of obligors
which defaulted
in the year		 Observed
average
default rate
%		 Exposures
weighted
average PD
%		 Average PD
%		 Average historical
annual default
rate
%
0.00 to <0.15 933,556 2,242 0.24 0.08 0.07 0.04
0.00 to <0.10 750,239 1,620 0.22 0.06 0.06 0.04
0.10 to <0.15 183,317 622 0.34 0.11 0.12 0.05
0.15 to <0.25 240,896 1,485 0.62 0.21 0.20 0.15
0.25 to <0.50 500,192 2,301 0.46 0.33 0.34 0.44
0.50 to <0.75 326,854 1,562 0.48 0.67 0.65 0.30
0.75 to <2.50 455,644 5,590 1.23 1.42 1.40 0.85
0.75 to <1.75 357,870 3,804 1.06 1.29 1.22 0.76
1.75 to <2.50 97,774 1,786 1.83 2.12 2.09 1.09
2.50 to <10.00 432,512 10,025 2.32 4.12 4.66 1.66
2.50 to <5.00 310,451 5,554 1.79 2.97 3.71 1.17
5.00 to <10.00 122,061 4,471 3.66 7.08 7.07 2.78
10.00 to <100.00 95,723 17,724 18.52 23.08 31.96 10.26
10.00 to <20.00 48,398 3,569 7.37 13.94 13.61 4.67
20.00 to <30.00 15,208 2,052 13.49 23.43 24.02 14.27
30.00 to <100.00 32,117 12,103 37.68 62.07 63.37 23.11
100.00 (Default) – – – 100.00 100.00 –

Table 39: IRB – Backtesting of probability of default (PD) for central governments or central banks (UK CR9.1)

2025
Number of obligors at
the end of previous year
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA 13 – – 0.01 –
0.015 to <0.025 AA+ 18 – – 0.02 –
0.025 to <0.035 AA/AA– 4 – – 0.03 –
0.035 to <0.045 A+ 14 – – 0.04 –
0.045 to <0.060 A 1 – – 0.05 –
0.060 to <0.083 A– 9 – – 0.07 –
0.083 to <0.110 BBB+/BBB 5 – – 0.09 –
0.110 to <0.170 BBB/BBB– 9 – – 0.13 –
0.170 to <0.300 BBB– 5 – – 0.22 0.01
0.300 to <0.425 BB+ 2 – – 0.39 0.03
0.425 to <0.585 BB+/BB 1 – – 0.51 0.02
0.585 to <0.770 BB 1 – – 0.67 –
0.770 to <1.020 BB/BB– 9 – – 0.89 0.06
1.020 to <1.350 BB– 6 – – 1.17 –
1.350 to <1.750 BB–/B+ 4 1 25.00 1.54 0.33
1.750 to <2.350 B+ 2 – – 2.03 0.20
2.350 to <3.050 B 4 – – 2.67 3.75
3.050 to <4.000 B 6 – – 3.51 6.86
4.000 to <5.300 B/B– 10 – – 4.62 1.09
5.300 to <7.000 B– – – – – 2.00
7.000 to <9.200 B– – – – – –
9.200 to <12.000 B– 1 – – 10.54 –
12.000 to <15.750 B–/CCC+ – – – – 0.25
15.750 to <21.000 CCC+ 4 – – 18.00 25.00
21.000 to <28.500 CCC+ – – – – 21.45
28.500 to <99.999 CCC to C 2 – – 33.00 44.00
100 N/A – – – – –
100 N/A 4 – – 18.00 –
Unrated N/A – – – – –

3.3 Internal Ratings Based models continued Table 39: IRB – Backtesting of probability of default (PD) for central governments or central banks (UK CR9.1) continued

2024
Number of obligors at
the end of previous year
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA 10 – – 0.01 –
0.015 to <0.025 AA+/AA 19 – – 0.02 –
0.025 to <0.035 AA– 4 – – 0.03 –
0.035 to <0.045 A+ 12 – – 0.04 –
0.045 to <0.060 A 5 – – 0.05 –
0.060 to <0.083 A– 10 – – 0.07 –
0.083 to <0.110 BBB+ 4 – – 0.09 –
0.110 to <0.170 BBB 8 – – 0.13 –
0.170 to <0.300 BBB– 5 – – 0.22 0.05
0.300 to <0.425 BB+ – – – – 0.14
0.425 to <0.585 BB+/BB 5 – – 0.51 0.09
0.585 to <0.770 BB 2 – – 0.67 –
0.770 to <1.020 BB– 8 – – 0.89 0.32
1.020 to <1.350 BB–/B+ 5 – – 1.17 –
1.350 to <1.750 B+ – – – – 1.63
1.750 to <2.350 B+/B 2 – – 2.03 0.98
2.350 to <3.050 B 2 – – 2.67 4.46
3.050 to <4.000 B/B– 9 – – 3.51 9.29
4.000 to <5.300 B– 9 – – 4.62 5.45
5.300 to <7.000 B– 1 – – 6.08 10.00
7.000 to <15.750 B–/CCC+ 1 – – 8.01 –
15.750 to <99.999 CCC+/C 3 – – 10.54 –
100 N/A – – – – 1.25
100 N/A – – – – 25.00
Unrated N/A – – – – 7.27
2025
the end of previous year Number of obligors at
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – – –
0.015 to <0.025 AA/AA– – – – – –
0.025 to <0.035 A+ 23 – – 0.03 –
0.035 to <0.045 A 5 – – 0.04 –
0.045 to <0.060 A– 1 – – 0.05 –
0.060 to <0.083 BBB+/BBB 1 – – 0.07 –
0.083 to <0.110 BBB/BBB– 1 – – 0.09 –
0.110 to <0.170 BBB– 5 – – 0.13 –
0.170 to <0.300 BB+ 2 – – 0.22 –
0.300 to <0.425 BB+/BB – – – – –
0.425 to <0.585 BB – – – – –
0.585 to <0.770 BB/BB– – – – – –
0.770 to <1.020 BB– 1 – – 0.89 –
1.020 to <1.350 B+ – – – – –
1.350 to <1.750 B+/B – – – – –
1.750 to <2.350 B 1 – – 2.03 –
2.350 to <3.050 B – – – – –
3.050 to <4.000 B/B– – – – – –
4.000 to <5.300 B– – – – – –
5.300 to <7.000 B–/CCC+ to C – – – – –
7.000 to <9.200 CCC+ to C 1 – – 8.01 –
9.200 to <12.000 CCC+ to C – – – – –
12.000 to <15.750 CCC+ to C – – – – –
15.750 to <21.000 CCC+ to C – – – – –
21.000 to <28.500 CCC+ to C – – – – –
28.500 to <99.999 CCC+ to C – – – – –
100 N/A – – – – –

100 N/A – – – – – Unrated N/A – – – – –

3.3 Internal Ratings Based models continued Table 40: IRB – Backtesting of probability of default (PD) for institutions (CR9.1)

2024
Number of obligors at
the end of previous year
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – – –
0.015 to <0.025 AA – – – – –
0.025 to <0.035 AA–/A+ 17 – – 0.03 –
0.035 to <0.045 A 6 – – 0.04 –
0.045 to <0.060 A– 2 – – 0.05 –
0.060 to <0.083 BBB+ – – – – –
0.083 to <0.110 BBB 1 – – 0.09 –
0.110 to <0.170 BBB/BBB– 3 – – 0.13 –
0.170 to <0.300 BBB– 6 – – 0.22 –
0.300 to <0.425 BB+ – – – – –
0.425 to <0.585 BB – – – – –
0.585 to <0.770 BB/BB– 1 – – 0.67 –
0.770 to <1.020 BB– – – – – –
1.020 to <1.350 BB–/B+ 1 – – 1.17 –
1.350 to <1.750 B+ – – – – –
1.750 to <2.350 B+/B – – – – –
2.350 to <3.050 B – – – – –
3.050 to <4.000 B/B– – – – – –
4.000 to <5.300 B– – – – – –
5.300 to <7.000 B–/CCC – – – – –
7.000 to <15.750 CCC/C – – – – –
15.750 to <99.999 CCC/C – – – – –
100 N/A – – – – –
100 N/A – – – – –
Unrated N/A – – – – –

3.3 Internal Ratings Based models continued Table 40: IRB – Backtesting of probability of default (PD) for institutions (CR9.1) continued

2025
the end of previous year Number of obligors at
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – – –
0.015 to <0.025 AA – – – – –
0.025 to <0.035 AA– 57 – – 0.03 –
0.035 to <0.045 A+ 51 – – 0.04 –
0.045 to <0.060 A/A– 108 – – 0.05 –
0.060 to <0.083 BBB+ 210 – – 0.07 0.13
0.083 to <0.110 BBB+/BBB 235 – – 0.09 –
0.110 to <0.170 BBB 368 – – 0.13 –
0.170 to <0.300 BBB– 432 – – 0.22 1.43
0.300 to <0.425 BBB–/BB+ 282 – – 0.39 0.32
0.425 to <0.585 BB 281 – – 0.51 0.32
0.585 to <0.770 BB/BB– 217 – – 0.67 0.36
0.770 to <1.020 BB– 144 – – 0.89 0.99
1.020 to <1.350 BB–/B+ 101 1 0.99 1.17 0.75
1.350 to <1.750 B+ 64 – – 1.54 1.63
1.750 to <2.350 B+ 42 1 2.38 2.03 1.52
2.350 to <3.050 B 25 – – 2.67 5.75
3.050 to <4.000 B/B– 24 – – 3.51 8.79
4.000 to <5.300 B– 41 – – 4.62 5.82
5.300 to <7.000 B– 2 – – 6.08 10.67
7.000 to <9.200 B– 3 1 33.33 8.01 –
9.200 to <12.000 B–/CCC+ 1 – – 10.54 –
12.000 to <15.750 CCC+ 14 – – 13.77 2.96
15.750 to <21.000 CCC+ 17 1 5.88 18.00 10.53
21.000 to <28.500 CCC+/CCC to C 3 – – 24.55 21.85
28.500 to <99.999 CCC to C 2 1 50.00 33.00 35.33
100 N/A – – – – –
100 N/A – 1 5.88 – –
Unrated N/A – – – – –

3.3 Internal Ratings Based models continued Table 41: IRB – Backtesting of probability of default (PD) for corporates (CR9.1)

2024
Number of obligors at
the end of previous year
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – – –
0.015 to <0.025 AA – – – – –
0.025 to <0.035 AA– 57 – – 0.03 –
0.035 to <0.045 A+ 51 – – 0.04 –
0.045 to <0.060 A/A– 99 – – 0.05 –
0.060 to <0.083 BBB+ 208 – – 0.07 0.11
0.083 to <0.110 BBB+/BBB 261 – – 0.09 –
0.110 to <0.170 BBB 299 1 0.33 0.13 –
0.170 to <0.300 BBB– 494 – – 0.22 6.71
0.300 to <0.425 BBB–/BB+ 261 – – 0.39 0.23
0.425 to <0.585 BB+/BB 277 – – 0.51 0.27
0.585 to <0.770 BB 188 1 0.53 0.67 0.30
0.770 to <1.020 BB– 122 – – 0.89 0.71
1.020 to <1.350 BB– 86 – – 1.17 0.95
1.350 to <1.750 BB–/B+ 50 – – 1.54 –
1.750 to <2.350 B+ 40 1 2.50 2.03 0.85
2.350 to <3.050 B 26 – – 2.67 5.73
3.050 to <4.000 B 23 – – 3.51 3.76
4.000 to <5.300 B/B– 22 – – 4.62 1.82
5.300 to <7.000 B– 5 – – 6.08 3.33
7.000 to <15.750 B–/CCC+ 13 – – 8.01 –
15.750 to <99.999 CCC+/C 2 – – 10.54 –
100 N/A 10 – – 13.77 1.43
100 N/A 2 – – 18.00 5.72
Unrated N/A 6 – – 24.55 21.80

3.3 Internal Ratings Based models continued Table 41: IRB – Backtesting of probability of default (PD) for corporates (CR9.1) continued

Table 42: IRB – Backtesting of probability of default (PD) for corporates – specialised lending (CR9.1)

2025
Number of obligors at
the end of previous year
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – – –
0.015 to <0.025 AA – – – – –
0.025 to <0.035 AA– – – – – –
0.035 to <0.045 A+ – – – – –
0.045 to <0.060 A/A– 1 – – 0.05 –
0.060 to <0.083 BBB+ – – – – –
0.083 to <0.110 BBB+/BBB – – – – –
0.110 to <0.170 BBB – – – – –
0.170 to <0.300 BBB– 10 – – 0.22 6.67
0.300 to <0.425 BBB–/BB+ 3 – – 0.39 –
0.425 to <0.585 BB 1 – – 0.51 –
0.585 to <0.770 BB/BB– – – – – –
0.770 to <1.020 BB– – – – – –
1.020 to <1.350 BB–/B+ 1 – – 1.17 –
1.350 to <1.750 B+ – – – – –
1.750 to <2.350 B+ – – – – –
2.350 to <3.050 B – – – – –
3.050 to <4.000 B/B– – – – – –
4.000 to <5.300 B– – – – – –
5.300 to <7.000 B– – – – – –
7.000 to <9.200 B– – – – – 4.00
9.200 to <12.000 B–/CCC+ – – – – –
12.000 to <15.750 CCC+ – – – – 4.00
15.750 to <21.000 CCC+ – – – – –
21.000 to <28.500 CCC+/CCC to C – – – – –
28.500 to <99.999 CCC to C – – – – –
100 N/A – – – – –
100 N/A – – – – –
Unrated N/A – – – – –

3.3 Internal Ratings Based models continued Table 42: IRB – Backtesting of probability of default (PD) for corporates – specialised lending (CR9.1) continued

2024
Number of obligors at
the end of previous year
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – – –
0.015 to <0.025 AA – – – – –
0.025 to <0.035 AA– – – – – –
0.035 to <0.045 A+ – – – – –
0.045 to <0.060 A/A– 1 – – 0.05 –
0.060 to <0.083 BBB+ – – – – –
0.083 to <0.110 BBB+/BBB – – – – –
0.110 to <0.170 BBB 1 – – 0.13 –
0.170 to <0.300 BBB– 5 – – 0.22 –
0.300 to <0.425 BBB–/BB+ 4 – – 0.39 –
0.425 to <0.585 BB+/BB – – – – –
0.585 to <0.770 BB – – – – –
0.770 to <1.020 BB– – – – – –
1.020 to <1.350 BB– 1 – – 1.17 –
1.350 to <1.750 BB–/B+ – – – – –
1.750 to <2.350 B+ – – – – –
2.350 to <3.050 B – – – – –
3.050 to <4.000 B – – – – –
4.000 to <5.300 B/B– – – – – –
5.300 to <7.000 B– – – – – –
7.000 to <15.750 B–/CCC+ – – – – 20.00
15.750 to <99.999 CCC+/C – – – – –
100 N/A – – – – 20.00
100 N/A – – – – –
Unrated N/A – – – – –

3.3 Internal Ratings Based models continued
Table 43: IRB – Backtesting of probability of default (PD) for corporates – SME (CR9.1)
2025
the end of previous year Number of obligors at
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – %
–		 –
0.015 to <0.025 AA – – – – –
0.025 to <0.035 AA– – – – – –
0.035 to <0.045 A+ – – – – –
0.045 to <0.060 A/A– 1 – – 0.05 –
0.060 to <0.083 BBB+ – – – – –
0.083 to <0.110 BBB+/BBB 1 – – 0.09 –
0.110 to <0.170 BBB 2 – – 0.13 –
0.170 to <0.300 BBB– 6 – – 0.22 –
0.300 to <0.425 BBB–/BB+ 1 – – 0.39 –
0.425 to <0.585 BB 3 – – 0.51 –
0.585 to <0.770 BB/BB– 1 – – 0.67 –
0.770 to <1.020 BB– 2 – – 0.89 –
1.020 to <1.350 BB–/B+ 1 – – 1.17 –
1.350 to <1.750 B+ 1 – – 1.54 –
1.750 to <2.350 B+ – – – – –
2.350 to <3.050 B 2 – – 2.67 –
3.050 to <4.000 B/B– – – – – –
4.000 to <5.300 B– – – – – –
5.300 to <7.000 B– – – – – –
7.000 to <9.200 B– – – – – 20.00
9.200 to <12.000 B–/CCC+ – – – – –
12.000 to <15.750 CCC+ – – – – 20.00
15.750 to <21.000 CCC+ – – – – –
21.000 to <28.500 CCC+/CCC to C – – – – –
28.500 to <99.999 CCC to C – – – – –
100 N/A – – – – –
100 N/A – – – – –
Unrated N/A – – – – –

3.3 Internal Ratings Based models continued Table 43: IRB – Backtesting of probability of default (PD) for corporates – SME (CR9.1) continued

2024
the end of previous year Number of obligors at
PD Range % External Rating
equivalent
(S&P)		 Of which number of
obligors which
defaulted in the year		 Observed average
default rate
%		 Average PD
%		 Average historical
annual default rate
%
0.000 to <0.015 AAA/AA+ – – – – –
0.016 to <0.025 AA – – – – –
0.026 to <0.035 AA– – – – – –
0.036 to <0.045 A+ – – – – –
0.046 to <0.060 A/A– – – – – –
0.061 to <0.083 BBB+ – – – – –
0.084 to <0.110 BBB+/BBB 1 – – 0.09 –
0.111 to <0.170 BBB 2 – – 0.13 –
0.171 to <0.300 BBB– 1 – – 0.22 –
0.301 to <0.425 BBB–/BB+ 1 – – 0.39 –
0.426 to <0.585 BB+/BB 5 – – 0.51 –
0.586 to <0.770 BB – – – – –
0.771 to <1.020 BB– 2 – – 0.89 –
1.021 to <1.350 BB– 2 – – 1.17 –
1.351 to <1.750 BB–/B+ 4 – – 1.54 –
1.751 to <2.350 B+ – – – – –
2.351 to <3.050 B 1 – – 2.67 –
3.051 to <4.000 B – – – – –
4.001 to <5.300 B/B– 1 – – 4.62 –
5.301 to <7.000 B– – – – – –
7.001 to <15.750 B–/CCC+ – – – – –
15.751 to <99.999 CCC+/C – – – – –
100 N/A – – – – –
100 N/A – – – – –
Unrated N/A – – – – –

3.4 Credit risk quality

The following tables detail the Group's Credit quality of exposures. The amounts shown are based on IFRS accounting values according to the regulatory scope of consolidation.

Table 44 shows the credit quality of on and off-balance sheet non-performing exposures and related impairments, provisions and valuation adjustments by portfolio and exposure class.

Table 45 shows the on and off-balance sheet net credit risk exposures by residual contractual maturity, split by either loans and advances or debt securities.

Table 46 shows information on changes in the institutions stock of on balance sheet non-performing loans and advances.

Table 47 shows the quality of on and off-balance sheet forborne exposures.

Table 48 shows the credit quality of performing and non-performing exposures by past due days.

Table 49 shows the credit quality of on balance sheet and off-balance sheet exposure for loans and advances, debt securities derivatives and equity instruments by geography.

Table 50 shows the credit quality of loans and advances on balance sheet exposure to non-financial corporation by industry types.

The scope and definitions of 'past-due' and 'impaired' exposures used for accounting purposes, the extent of past-due exposures (more than 90 days) that are not considered to be impaired and the reasons for this, and methods used for determining general and specific credit risk adjustments are shown in the 2025 Annual Report and Accounts on page 343 to 345.

Table 44: Performing and non-performing exposures and related provisions (UK CR1)

2025
Gross carrying amount/nominal amount Accumulated impairment, accumulated negative changes
in fair value due to credit risk and provisions		 Collateral and
financial guarantees
received
Performing exposures Non-performing exposures Performing exposures –
accumulated impairment
and provisions		 Non-performing exposures –
accumulated impairment,
accumulated negative
changes in fair value due to
credit risk and provisions
\$million Of which
stage 1
\$million		 Of which
stage 2
\$million		 \$million Of which
stage 2
\$million		 Of which
stage 3
\$million		 \$million Of which
stage 1
\$million		 Of which
stage 2
\$million		 \$million Of which
stage 2
\$million		 Of which
stage 3
\$million		 Accumu
lated
partial
write-off
\$million		 On
performing
exposures
\$million		 On non
performing
exposures
\$million
005 Cash balances at
central banks and
other demand
deposits		 79,728 79,256 472 773 – 773 (1) – (1) (9) – (9) – – –
010 Loans and
advances		 410,810 400,732 10,078 6,053 – 6,053 (981) (534) (447) (3,094) – (3,094) (4,883) 138,866 995
020 Central banks 14,895 14,895 – – – - – – – – – – – 535 –
030 General
governments 5,555 5,435 120 855 – 855 (3) (3) – (37) – (37) (6) 1,505 –
040 Credit institutions 82,376 82,190 186 76 – 76 (3) (3) – (10) – (10) (27) 4,313 –
050 Other financial
corporations		 80,141 79,208 933 204 – 204 (26) (10) (16) (68) – (68) (328) 10,912 –
060 Non-financial
corporations		 106,236 99,084 7,152 3,673 – 3,673 (511) (193) (318) (2,622) – (2,622) (4,520) 23,524 340
070 Of which SMEs 9,548 9,170 378 660 – 660 (93) (84) (9) (414) – (414) – 2,230 6
080 Households 121,608 119,920 1,688 1,245 – 1,245 (438) (325) (113) (357) – (356) (3) 98,078 655
090 Debt securities 168,552 167,350 1,202 301 – 301 (60) (55) (5) (5) – (5) – 730 –
100 Central banks 23,762 23,760 2 283 – 283 (15) (15) – (5) – (5) – 5 –
110 General
governments		 92,761 91,919 842 – – - (23) (22) (1) – – – – 423 –
120 Credit institutions 30,782 30,678 104 – – 0 (8) (7) (1) – – – – 220 –
130 Other financial
corporations		 20,010 19,815 195 – – - (12) (10) (2) – – – – 5 –
140 Non-financial
corporations		 1,237 1,178 59 18 – 18 (1) (1) – – – – – 77 –
150 Off-balance
sheet exposures		 312,840 307,121 5,719 596 – 596 (124) (75) (49) (100) – (100) 6,672 56
160 Central banks 580 580 – – – - – – – – – – – –
170 General
governments 5,197 5,165 32 – – - (4) (2) (2) – – – 568 –
180 Credit institutions 14,774 14,548 226 9 – 9 (2) (2) – - – – 185 –
190 Other financial
corporations 82,367 81,250 1,117 1 – 1 (7) (5) (1) – – – 437 –
200 Non-financial
corporations 139,345 135,121 4,224 582 – 582 (98) (56) (43) (100) – (100) 5,350 57
210 Households 70,577 70,457 120 4 – 4 (13) (9) (3) – – – 132 –
220 Total 971,930 954,458 17,472 7,723 – 7,723 (1,166) (664) (502) (3,208) – (3,208) (4,883) 146,267 1,052

3.4 Credit risk quality continued Table 44: Performing and non-performing exposures and related provisions (UK CR1)

Collateral and
Accumulated impairment, accumulated negative changes
financial guarantees
Gross carrying amount/nominal amount
in fair value due to credit risk and provisions
received
Non-performing exposures –
accumulated impairment,
Performing exposures –
accumulated negative
accumulated impairment
changes in fair value due to
Performing exposures
Non-performing exposures
and provisions
credit risk and provisions
Accumu
lated
On
Of which
Of which
Of which
Of which
Of which
Of which
Of which
Of which
partial
performing
stage 1
stage 2
stage 2
stage 3
stage 1
stage 2
stage 2
stage 3
write-off
exposures
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
005 Cash balances at
central banks and
other demand
deposits
65,592
65,160
432
427
–
427
(4)
–
(4)
(4)
–
(4)
–
–
010
Loans and
advances
407,490
396,481
11,009
6,286
–
6,286
(967)
(493)
(474)
(3,953)
–
(3,953)
(4,818) 122,859
020 Central banks
24,738
24,729
9
–
–
–
(1)
(1)
–
–
–
–
–
177
030 General
governments
13,952
13,549
403
107
–
107
(4)
(3)
(1)
(42)
–
(42)
(6)
1,123
040 Credit institutions
74,043
73,898
145
54
–
54
(4)
(4)
–
(12)
–
(12)
(27)
3,441
050 Other financial
corporations
81,571
80,342
1,229
101
–
101
(154)
(12)
(142)
(55)
–
(55)
(328)
11,855
060 Non-financial
corporations
100,301
92,574
7,727
5,063
–
5,063
(353)
(143)
(210)
(3,561)
–
(3,561)
(4,454)
22,961
070
Of which SMEs
10,534
9,967
567
669
–
669
(112)
(91)
(21)
(389)
–
(389)
–
1,343
080 Households
112,885
111,389
1,496
961
–
961
(451)
(330)
(121)
(283)
–
(283)
(3) 83,302
090 Debt securities
145,725
144,108
1,617
105
–
105
(27)
(23)
(4)
(2)
–
(2)
–
201
100
Central banks
19,675
19,563
112
86
–
86
(4)
(2)
(2)
(2)
–
(2)
–
9
110
General
governments
68,968
67,608
1,360
–
–
–
(8)
(6)
(2)
–
–
–
–
105
120
Credit institutions
28,838
28,783
55
–
–
–
(9)
(9)
–
–
–
–
–
15
130
Other financial
corporations
26,257
26,167
90
–
–
–
(5)
(5)
–
–
–
–
–
24
140
Non-financial
corporations
1,987
1,987
–
19
–
19
(1)
(1)
–
–
–
–
–
48
150
Off-balance
sheet exposures
272,674 266,630
6,044
609
–
609
(125)
(66)
(59)
(130)
–
(130)
4,251
160
Central banks
386
386
–
–
–
–
–
–
–
–
–
–
–
170
General
governments
5,061
5,042
19
–
–
–
–
–
–
–
–
–
297
180
Credit institutions
14,445
14,013
432
23
–
23
(4)
(3)
(1)
(6)
–
(6)
104
190
Other financial
corporations
62,826
62,001
825
1
–
1
(19)
(6)
(13)
–
–
–
875
200 Non-financial
corporations
118,977
114,332
4,645
578
–
578
(83)
(39)
(44)
(124)
–
(124)
2,642
210
Households
70,979
70,856
123
7
–
7
(19)
(18)
(1)
–
–
–
333
220 Total
891,481
872,379
19,102
7,427
–
7,427
(1,123)
(582)
(541)
(4,089)
–
(4,089)
(4,818)
127,311		 2024
On non
performing
exposures
\$million
–
881
–
5
–
–
321
11
555
–
–
–
–
–
–
46
–
–
–
–
46
–
927

Table 45: Maturity of exposures (UK CR1-A)

2025
Net exposure value
On demand
\$million		 <= 1 year
\$million		 > 1 year <= 5 years
\$million		 > 5 years
\$million		 No stated maturity
\$million		 Total
\$million
1 Loans and advances 13,653 224,952 86,751 104,802 – 430,158
2 Debt securities 111 108,429 83,109 60,808 – 252,457
3 Total 13,764 333,381 169,860 165,610 – 682,615
2024
Net exposure value
On demand
\$million		 <= 1 year
\$million		 > 1 year <= 5 years
\$million		 > 5 years
\$million		 No stated maturity
\$million		 Total
\$million
1 Loans and advances 12,269 236,043 75,128 96,677 – 420,117
2 Debt securities 159 89,766 74,237 55,939 – 220,101
3 Total 12,428 325,809 149,365 152,616 – 640,218

Table 46: Changes in the stock of non-performing loans and advances (UK CR2)

2025 2024
Gross carrying
amount
\$million		 Gross carrying
amount
\$million
010 Initial stock of non-performing loans and advances 6,286 7,304
020 Inflows to non-performing portfolios 3,509 2,440
030 Outflows from non-performing portfolios (3,742) (3,458)
040 Outflows due to write-offs (1,718) (1,464)
050 Outflow due to other situations (2,023) (1,994)
060 Final stock of non-performing loans and advances 6,053 6,286

Table 47: Credit quality of forborne exposures (UK CQ1)

2025
of exposures with forbearance measures Gross carrying amount/nominal amount Accumulated impairment,
accumulated negative changes
in fair value due to credit risk
and provisions		 Collateral
received and
financial
guarantees
received
on forborne
exposures
Non-performing forborne
Performing
forborne
\$million		 \$million Of which
defaulted
\$million		 Of which
impaired
\$million		 On performing
forborne
exposures
\$million		 On non
performing
forborne
exposures
\$million		 \$million Of which
collateral and
financial
guarantees
received on
non-performing
exposures with
forbearance
measures
005 Cash balances at central banks and other
demand deposits		 – – – – – – – –
010 Loans and advances 356 1,606 1,606 1,606 (68) (873) 244 203
020 Central banks – – – – – – – –
030 General governments – 27 27 27 – (1) – –
040 Credit institutions – – – – – – – –
050 Other financial corporations 48 35 35 35 – (30) – –
060 Non-financial corporations 264 1,284 1,284 1,284 (67) (744) 194 182
070 Households 44 259 259 259 – (98) 49 21
080 Debt Securities – – – – – – – –
090 Loan commitments given – – – – – – – –
100 Total 356 1,606 1,606 1,606 (68) (873) 244 203
2024
Gross carrying amount/nominal amount
of exposures with forbearance measures		 LRCom: Leverage ratio
common disclosure		 Collateral
received and
financial
guarantees
received
on forborne
exposures
Non-performing forborne
Performing
forborne
\$million		 \$million Of which
defaulted
\$million		 Of which
impaired
\$million		 On performing
forborne
exposures
\$million		 On non
performing
forborne
exposures
\$million		 \$million Of which
collateral and
financial
guarantees
received on
non-performing
exposures with
forbearance
measures
005 Cash balances at central banks and other
demand deposits – – – – – – – –
010 Loans and advances 53 2,323 2,323 2,320 (1) (1,591) 274 247
020 Central banks – – – – – – – –
030 General governments – – – – – – – –
040 Credit institutions – – – – – – – –
050 Other financial corporations 16 43 43 43 – (28) – –
060 Non-financial corporations 20 2,069 2,069 2,066 – (1,475) 227 210
070 Households 17 211 211 211 (1) (88) 47 37
080 Debt Securities – – – – – – – –
090 Loan commitments given – – – – – – – –
100 Total 53 2,323 2,323 2,320 (1) (1,591) 274 247

Table 48: Credit quality of performing and non-performing exposures by past due days (UK CQ3)

2025
Gross carrying amount/nominal amount
Performing exposures Non-performing exposures
\$million Not past
due or
past due
≤ 30 days
\$million		 Past due
> 30 days
≤ 90 days
\$million		 \$million Unlikely
to pay
that are
not past
due or are
past due
≤ 90 days
\$million		 Past due
> 90 days
≤ 180 days
\$million		 Past due
> 180 days
≤ 1 year
\$million		 Past due
> 1 year
≤ 2 years
\$million		 Past due
> 2 years
≤ 5 years
\$million		 Past due
> 5 years
≤ 7 years
\$million		 Past due
> 7 years
\$million		 Of which
defaulted
\$million
005 Cash balances at central banks and other
demand deposits 79,728 79,728 – 773 773 – – – – – – 773
010 Loans and advances 410,810 410,168 641 6,053 3,017 689 132 470 520 488 738 6,053
020 Central banks 14,895 14,895 – – – – – – – – – –
030 General governments 5,555 5,555 – 855 794 – – 1 23 37 – 855
040 Credit institutions 82,376 82,372 4 76 34 42 – – – – – 76
050 Other financial corporations 80,141 80,042 99 204 139 – – – 50 – 15 204
060 Non-financial corporations 106,236 105,992 244 3,673 1,623 – 83 402 400 446 719 3,673
070 Of which SMEs 9,548 9,511 37 660 227 – 83 80 75 35 161 660
080 Households 121,608 121,314 294 1,245 427 647 49 66 46 6 4 1,245
090 Debt securities 168,552 168,552 – 301 301 – – – – – – 18
100 Central banks 23,762 23,762 – 283 283 – – – – – – –
110 General governments 92,761 92,761 – – – – – – – – – –
120 Credit institutions 30,783 30,783 – – – – – – – – – –
130 Other financial corporations 20,010 20,010 – – – – – – – – – –
140 Non-financial corporations 1,237 1,237 – 18 18 – – – – – – 18
150 Off-balance-sheet exposures 312,840 596 596
160 Central banks 580 – –
170 General governments 5,197 – –
180 Credit institutions 14,774 9 9
190 Other financial corporations 82,367 1 1
200 Non-financial corporations 139,345 582 582
210 Households 70,577 4 4
220 Total 971,930 658,448 641 7,723 4,090 689 132 470 520 488 738 7,440
2024
Gross carrying amount/nominal amount
Performing exposures Non-performing exposures
\$million Not past
due or
past due
≤ 30 days
\$million		 Past due
> 30 days
≤ 90 days
\$million		 \$million Unlikely to
pay that
are not
past due
or are
past due
≤ 90 days
\$million		 Past due
> 90 days
≤ 180 days
\$million		 Past due
> 180 days
≤ 1 year
\$million		 Past due
> 1 year
≤ 2 years
\$million		 Past due
> 2 years
≤ 5 years
\$million		 Past due
> 5 years
≤ 7 years
\$million		 Past due
> 7 years
\$million		 Of which
defaulted
\$million
005 Cash balances at central banks and other
demand deposits		 65,592 65,592 – 427 427 – – – – – – 427
010 Loans and advances 407,490 407,133 357 6,286 2,143 780 409 657 1,420 230 647 6,286
020 Central banks 24,738 24,738 – – – – – – – – – –
030 General governments 13,952 13,952 – 107 51 1 – – 55 – – 107
040 Credit institutions 74,043 74,041 2 54 – 51 – – 3 – – 54
050 Other financial corporations 81,571 81,571 – 101 – 16 – 28 42 – 15 101
060 Non-financial corporations 100,301 100,224 77 5,063 1,908 95 358 567 1,281 225 629 5,063
070 Of which SMEs 10,534 10,487 47 669 252 47 49 39 72 94 116 669
080 Households 112,885 112,607 278 961 184 617 51 62 39 5 3 961
090 Debt securities 145,725 145,725 – 105 105 – – – – – – 105
100 Central banks 19,675 19,675 – 86 86 – – – – – – 86
110 General governments 68,968 68,968 – – – – – – – – – –
120 Credit institutions 28,838 28,838 – – – – – – – – – –
130 Other financial corporations 26,257 26,257 – – – – – – – – – –
140 Non-financial corporations 1,987 1,987 – 19 19 – – – – – – 19
150 Off-balance-sheet exposures 272,674 609 609
160 Central banks 386 – –
170 General governments 5,061 – –
180 Credit institutions 14,445 23 23
190 Other financial corporations 62,826 1 1
200 Non-financial corporations 118,977 578 578
210 Households 70,979 7 7
220 Total 891,481 618,450 357 7,427 2,675 780 409 657 1,420 230 647 7,427

Tables 49 and 50 break down defaulted and non-defaulted exposures by exposure class, as defined in the CRR, and by geography and industry.

Table 49: Quality of non-performing exposures by geography (UK CQ4)

2025
Gross carrying amount Accumulated
Of which non-performing Of which loans Provisions on
off-balance-sheet		 negative changes
in fair value due to
\$million \$million Of which
defaulted
\$million		 and advances
subject to
impairment
\$million		 Accumulated
impairment
\$million		 commitments and
financial
guarantees given
\$million		 credit risk on non
performing
exposures
\$million
010 On-balance-sheet
exposures 666,218 6,844 (4,151) –
020 Hong Kong 79,750 418 (573) –
030 Korea 47,152 314 (248) –
040 Singapore 77,747 492 (545) –
050 United States 99,654 107 (71) –
060 Other countries 361,915 5,512 (2,715) –
070 Off-balance-sheet
exposures		 313,436 596 (224)
080 United Kingdom 33,056 2 (9)
090 Hong Kong 44,243 – (25)
100 Singapore 45,310 2 (8)
110 United States 72,037 11 (18)
120 Other countries 118,790 581 (164)
130 Total 979,654 7,440 (4,151) (224) –
2024
Gross carrying amount Accumulated
Of which non-performing Of which loans Provisions on
off-balance-sheet		 negative changes
in fair value due to
\$million \$million Of which
defaulted
\$million		 and advances
subject to
impairment
\$million		 Accumulated
impairment
\$million		 commitments and
financial
guarantees given
\$million		 credit risk on non
performing
exposures
\$million
010 On-balance-sheet
exposures		 625,625 6,818 (4,957) –
020 Hong Kong 71,357 383 (580) –
030 Korea 42,772 213 (197) –
040 Singapore 73,968 473 (612) –
050 United States 91,052 2 (9) –
060 Other countries 346,476 5,747 (3,559) –
070 Off-balance-sheet
exposures 273,283 609 (254)
080 United Kingdom 22,065 5 (9)
090 Hong Kong 49,161 – (37)
100 Singapore 44,146 31 (9)
110 United States 50,659 – (11)
120 Other countries 107,252 573 (188)
130 Total 898,908 7,427 (4,957) (254) –

Table 50: Credit quality of loans and advances to non-financial corporations by industry (UK CQ5)

2025
Gross carrying amount Accumulated
Of which non-performing Of which loans negative changes
in fair value due to
\$million \$million Of which
defaulted
\$million		 and advances
subject to
impairment
\$million		 Accumulated
impairment
\$million		 credit risk on
non-performing
exposures
\$million
005 Cash balances at central banks
and other demand deposits		 80,501 773 (10) –
010 Agriculture, forestry and fishing 804 28 (29) –
020 Mining and quarrying 4,175 32 (25) –
030 Manufacturing 32,175 1,149 (1,188) –
040 Electricity, gas, steam and air
conditioning supply		 9,714 269 (87) –
050 Water supply 296 – (2) –
060 Construction 1,550 66 (76) –
070 Wholesale and retail trade 22,754 786 (602) –
080 Transport and storage 7,000 107 (46) –
090 Accommodation and food service
activities		 1,882 111 (67) –
100 Information and communication 4,374 53 (90) –
110 Financial and insurance activities 284 36 (1) –
120 Real estate activities 15,540 691 (636) –
130 Professional, scientific and
technical activities		 697 7 (8) –
140 Administrative and support service
activities		 778 5 (7) –
150 Public administration and defence,
compulsory social security		 – – – –
160 Education 151 11 – –
170 Human health services and social
work activities		 508 – – –
180 Arts, entertainment and recreation 241 1 – –
190 Other services 6,986 319 (271) –
200 Total 109,909 3,673 (3,133) –
210 Households 122,853 1,245 (795) –
220 Total 313,263 5,691 (3,938) –

2024
Gross carrying amount Accumulated
Of which non-performing Of which loans negative changes
in fair value due to
\$million \$million Of which
defaulted
\$million		 and advances
subject to
impairment
\$million		 Accumulated
impairment
\$million		 credit risk on
non-performing
exposures
\$million
005 Cash balances at central banks
and other demand deposits		 66,019 427 (8) –
010 Agriculture, forestry and fishing 1,240 39 (36) –
020 Mining and quarrying 4,740 236 (214) –
030 Manufacturing 36,216 1,821 (1,192) –
040 Electricity, gas, steam and air
conditioning supply		 8,497 217 (74) –
050 Water supply 285 – (5) –
060 Construction 1,685 105 (114) –
070 Wholesale and retail trade 22,836 828 (531) –
080 Transport and storage 6,933 97 (43) –
090 Accommodation and food service
activities		 1,456 113 (29) –
100 Information and communication 3,234 57 (110) –
110 Financial and insurance activities 23 – – –
120 Real estate activities 15,719 1,503 (1,305) –
130 Professional, scientific and
technical activities		 969 10 (8) –
140 Administrative and support service
activities		 688 24 (18) –
150 Public administration and defence,
compulsory social security		 – – – –
160 Education 148 11 – –
170 Human health services and social
work activities		 268 – – –
180 Arts, entertainment and recreation 186 1 – –
190 Other services 241 – (234) –
200 Total 105,364 5,063 (3,914) –
210 Households 113,846 961 (734) –
220 Total 285,229 6,451 (4,656) –

3.5 Risk grade profile

Exposures by internal credit grading

For CIB IRB portfolios, an alphanumeric credit risk-grading system is used. The grading is based on the Group's internal estimate of probability of default over a one-year horizon, with customers or portfolios assessed against a range of quantitative and qualitative factors from credit risk models. The numeric grades run from 1 to 14 and some of the grades are further sub-classified. Numerically lower credit grades are indicative of a lower likelihood of default. Credit grades 1 to 12 are assigned to performing customers and credit grades 13 and 14 are assigned to non-performing or defaulted customers. The Group's credit grades in CIB and CB are not intended to replicate external credit grades, and ratings assigned by external credit assessment institutions (ECAI) are not used in determining internal credit grades. Nonetheless, as the assessment factors used to grade a borrower may be similar, a borrower rated poorly by an ECAI is typically expected to be assigned a weak internal credit grade.

For Retail exposures, application and behaviour credit scores are calibrated to generate a PD used for RWA and capital estimate purposes for IRB portfolios.

IRB models cover a substantial majority of the Group's exposures and are used extensively in assessing risks at customer and portfolio level, setting strategy and optimising the Group's risk-return decisions. The Group makes use of internal risk estimates of PD, LGD and EAD in the areas of:

  • Credit Approval and Decision In CIB, the level of authority required for the sanctioning of credit requests and the decision made is based on a combination of PD, LGD and EAD of the obligor with reference to the nominal exposure. In Retail, credit scores are relied upon as one of the primary drivers for credit decisioning.
  • Pricing In CIB, a pre-deal pricing calculator, which takes into consideration PD, LGD and EAD in the calculation of expected loss and risk-weighted assets, is used for the proposed transactions to ensure appropriate returns. In Retail unsecured lending, a risk-return approach based on PD estimates is used as guidance for pricing strategy.
  • Limit Setting In CIB, single name concentration limits are determined by PD, LGD and EAD. The limits operate on a sliding scale to ensure that the Group does not have an excessive concentration of low credit quality assets. In Retail unsecured lending, limit assignment / loan amounts are risk-based and segregated by credit score bands.

3.5 Risk grade profile continued

Table 51 sets out credit and counterparty risk EAD within the IRB portfolios by regulatory exposure classes. EAD has been calculated after taking into account the impact of credit risk mitigation. Where an exposure is guaranteed or covered by credit derivatives, it is shown against the exposure class of the guarantor or derivative issuer. A further split of the major exposure classes by credit grade can be seen in Tables 53 to 64.

IRB credit risk excluding counterparty credit risk EAD increased by \$27.4 billion and RWA decreased by \$2 billion (Tables 53 to 64):

  • Central governments and central banks EAD increased \$8.2 billion and RWA decreased \$0.6 billion
  • Institutions EAD increased \$1.6 billion and RWA decreased by \$0.8 billion
  • Corporates EAD increased \$15.0 billion and RWA by \$1.0 billion
  • Retail EAD increased \$2.7 billion and RWA decreased by \$1.6 billion

Table 51: IRB – Credit risk exposure by exposure class

2025
Original on
balance
sheet gross
exposure
\$million		 Off
balance sheet
exposure pre
CCF
\$million		 Average
CCF
\$million		 EAD post
CRM and
post CCF
\$million		 Average PD1
\$million		 Number of
obligors2
\$million		 Average
LGD1
\$million		 Average
maturity1
\$million		 RWA
\$million		 RWA
density1
\$million		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
IRB Exposure Class
Central governments or
central banks		 179,125 5,238 22 174,443 0.43 0.2 45 1.21 21,328 12 144 (96)
Institutions 57,686 21,704 65 69,637 0.34 1.2 32 0.91 12,143 17 47 (9)
Corporates 109,300 289,087 25 203,590 2.05 19.9 39 1.45 64,608 32 2,721 (2,783)
Other 89,096 270,291 25 183,197 1.64 15.7 40 1.36 58,559 32 1,754 (1,850)
Of which Specialised
lending		 17,767 16,624 29 17,576 4.46 0.8 24 2.51 4,811 27 508 (540)
Of which SME 2,437 2,172 22 2,817 13.83 3.4 29 1.28 1,238 44 259 (246)
Retail 87,983 32,274 47 102,148 1.47 3,027.6 31 18,080 18 745 (401)
Of which secured by real
estate		 74,370 2,299 99 76,647 0.66 295.3 15 5,800 8 103 (46)
- SME 341 49 51 366 4.39 2.0 6 17 5 2 (2)
- Non SME 74,029 2,250 100 76,281 0.64 293.3 15 5,783 8 101 (44)
Of which qualifying
revolving retail		 4,494 23,446 45 15,023 2.35 2,320.5 84 4,691 31 242 (129)
Of which other retail 9,119 6,529 34 10,478 6.47 411.8 69 7,589 72 400 (226)
- SME 2,178 1,991 5 2,119 10.48 22.2 47 1,197 56 120 (68)
- Non SME 6,941 4,538 47 8,359 5.01 389.6 77 6,392 76 280 (158)
Non-credit obligation assets 43 - - 43 - 43 100 -
Total IRB4 434,137 348,303 38 549,861 2.06 3,048.9 46 1.46 116,202 21 3,657 (3,289)
2024
Original on
balance
sheet
exposure
\$million		 Off
balance sheet
exposure pre
CCF
\$million		 Average
CCF
\$million		 EAD post
CRM and
post CCF
\$million		 Average PD1
\$million		 Number of
obligors2
\$million		 Average
LGD1
\$million		 Average
maturity1
\$million		 RWA
\$million		 RWA
density1
\$million		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
IRB Exposure Class
Central governments or
central banks 163,054 6,639 9 166,287 0.43 0.2 44 1.47 21,960 13 159 (46)
Institutions 59,165 27,260 47 68,036 0.55 1.3 32 0.95 12,903 19 62 (15)
Corporates 113,853 307,312 39 188,625 2.46 20.6 39 1.37 63,622 34 3,305 (3,186)
Other 96,642 283,883 22 171,223 2.11 15.8 41 1.29 58,270 34 2,759 (2,583)
Of which Specialised
lending		 14,617 21,273 20 14,354 4.69 0.7 23 2.37 3,997 28 340 (414)
Of which SME 2,594 2,156 26 3,048 11.72 4.1 30 1.29 1,355 44 206 (189)
Retail 83,616 35,697 45 99,468 1.52 3,626.0 34 19,690 20 756 (405)
Of which secured by real
estate		 69,046 1,682 99 70,707 0.66 295.3 16 4,968 7 67 (42)
- SME 314 53 53 343 3.15 2.2 7 18 5 1 (2)
- Non SME 68,732 1,629 100 70,364 0.65 293.1 16 4,950 7 66 (40)
Of which qualifying
revolving retail		 4,413 26,398 44 16,010 2.07 2,723.6 85 4,908 31 243 (127)
Of which other retail 10,157 7,617 36 12,751 6.06 607.1 68 9,814 77 446 (236)
- SME 2,080 2,134 4 1,988 10.33 25.1 50 1,181 59 109 (61)
- Non SME 8,077 5,483 49 10,763 4.73 582.0 74 8,633 80 337 (175)
Non-credit obligation assets 43 - - 43 - 43 100 -
Total IRB4 419,731 376,908 43 522,459 2.59 3,648.1 49 1.44 118,218 23 4,282 (3,652)

1 Weighted averages are based on EAD.

2 Number of obligors is based on number of counterparties for central governments or central banks, institutions and corporates and on individual pools of clients for retail.

3 Corporates of which specialised lending includes exposures for specialised lending subject to supervisory slotting criteria.

4 Refer to Table 20 (OV1) for RWA.

3.5 Risk grade profile continued

The table below demonstrates Standard Chartered's internal ratings and its approximate relation to external credit ratings.

Tables 53 to 64 and tables 90 to 94 provide further detail on the exposure classes subject to credit and counterparty credit risk, in particular for central governments or central banks, institutions, corporates and retail. These have been split by internal credit grade which relate to the PD ranges presented. These exposure classes represent 82 per cent (2024: 85 per cent) of the Group's total credit risk exposure before collateral.

Table 52: Internal default grade probabilities and mapping to external ratings

SCB internal
ratings		 PD range (%) Standard & Poor's
external rating equivalent
for corporates		 Standard & Poor's
external rating equivalent for banks		 Standard & Poor's
external rating equivalent
for sovereigns
1A 0.000 - 0.015 AAA/AA+ AAA/AA+ AAA
1B 0.016 - 0.025 AA AA/AA- AA+
2A 0.026 - 0.035 AA- A+ AA/AA
2B 0.036 - 0.045 A+ A A+
3A 0.046 - 0.060 A/A- A- A
3B 0.061 - 0.083 BBB+ BBB+/BBB A
4A 0.084 - 0.110 BBB+/BBB BBB/BBB- BBB+/BBB
4B 0.111 - 0.170 BBB BBB- BBB/BBB
5A 0.171 - 0.300 BBB- BB+ BBB
5B 0.301 - 0.425 BBB-/BB+ BB+/BB BB+
6A 0.426 - 0.585 BB BB BB+/BB
6B 0.586 - 0.770 BB/BB- BB/BB- BB
7A 0.771 - 1.020 BB- BB- BB/BB
7B 1.021 - 1.350 BB-/B+ B+ BB
8A 1.351 - 1.750 B+ B+/B BB-/B+
8B 1.751 - 2.350 B+ B B+
9A 2.351 - 3.050 B B B
9B 3.051 - 4.000 B/B- B/B- B
10A 4.001 - 5.300 B- B- B/B
10B 5.301 - 7.000 B- B-/CCC+ to C B
11A/B/C 7.001 - 15.750 B-/CCC+ CCC/C B-/CCC+
12A/B/C 15.751 - 99.999 CCC+/C CCC+/C CCC+/C
13 100 N/A N/A N/A
14 100 N/A N/A N/A
Unrated N/A N/A N/A

3.5 Risk grade profile continued Table 53: IRB approach – Credit risk exposures by exposure class and PD range for central governments or central banks (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 166,224 2,582 13 169,733 0.03 0.1 45 1.22 14,696 9 22 (16)
0.00 to <0.10 156,781 1,980 8 160,482 0.02 0.1 45 1.17 11,522 7 16 (12)
0.10 to <0.15 9,442 602 28 9,251 0.13 0.0 43 2.01 3,174 34 5 (4)
0.15 to <0.25 612 4 100 282 0.22 0.0 45 1.02 95 34 – –
0.25 to <0.50 215 54 17.00 124 0.39 0.0 44 1.00 62 50 – –
0.50 to <0.75 – – – – – – – – – – – –
0.75 to <2.50 5,494 333 21 2,434 1.62 0.0 44 0.88 2,130 88 17 (8)
0.75 to <1.75 2,598 318 21 980 1.00 0.0 43 1.31 734 75 4 (2)
1.75 to <2.5 2,897 15 32 1,453 2.03 0.0 45 0.59 1,395 96 13 (6)
2.50 to <10.00 4,463 2,190 33 1,143 4.83 0.0 43 1.10 1,515 133 23 (9)
2.5 to <5 3,187 1,535 43 821 3.58 0.0 45 1.31 1,050 128 13 (7)
5 to <10 1,276 655 9.00 322 8.01 0.0 36.09 0.56 465 144 10 (2)
10.00 to <100.00 414 – – 161 10.54 0.0 45 0.11 289 180 8 (1)
10 to <20 414 – – 161 10.54 0.0 45 0.11 289 180 8 (1)
20 to <30 – – – – – – – – – – – –
30.00 to <100.00 – – – – – – – – – – – –
100.00 (Default) 1,703 75 – 566 100.00 0.1 43 1.00 2,541 449 74 (62)
Total 179,125 5,238 21.5 174,443 0.42 0.2 45 1.21 21,328 12 144 (96)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 150,625 3,032 6 160,490 0.03 0.1 44 1.49 13,592 8 20 (7)
0.00 to <0.10 139,054 2,618 6 149,316 0.02 0.1 44 1.47 9,954 7 13 (4)
0.10 to <0.15 11,571 414 – 11,173 0.15 – 43 1.70 3,638 33 8 (3)
0.15 to <0.25 497 79 31 220 0.22 – 45 0.42 62 28 – –
0.25 to <0.50 25 – – 24 0.39 – 30 1.66 8 33 – –
0.50 to <0.75 – – – – – – – – – – – –
0.75 to <2.50 5,940 818 21 2,762 1.28 – 45 0.87 2,307 84 16 (6)
0.75 to <1.75 5,647 805 22 2,622 1.24 – 45 0.87 2,166 83 15 (6)
1.75 to <2.5 293 13 3 138 2.03 – 46 0.84 141 102 1 –
2.50 to <10.00 3,739 2,302 23 1,662 3.98 – 45 1.04 2,144 129 30 (8)
2.5 to <5 3,739 2,302 23 1,662 3.98 – 45 1.04 2,144 129 30 (8)
5 to <10 – – – – – – – – – – – –
10.00 to <100.00 1,593 300 – 723 21.86 – 44 0.44 1,685 233 72 (9)
10 to <20 1,215 300 – 506 17.09 – 43 0.58 1,141 225 39 (4)
20 to <30 – – – – – – – – – – – –
30.00 to <100.00 378 – – 217 33.00 – 47 0.11 544 251 33 (5)
100.00 (Default) 635 108 – 406 100.00 0.1 44 1.49 2,162 533 21 (16)
Total 163,054 6,639 9 166,287 0.42 0.2 44 1.47 21,960 13 159 (46)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued

Table 54: IRB approach – Credit risk exposures by exposure class and PD range for institutions (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 41,309 15,881 60 55,724 0.05 0.6 35 0.97 5,879 11 9 (6)
0.00 to <0.10 37,176 14,712 60 50,743 0.04 0.5 35 1.01 4,904 10 7 (5)
0.10 to <0.15 4,132 1,170 67 4,981 0.13 0.1 32 0.64 975 20 2 –
0.15 to <0.25 988 910 66 1,483 0.22 0.1 26 0.49 350 24 1 –
0.25 to <0.50 374 379 66 523 0.39 0.1 25 0.38 187 36 1 –
0.50 to <0.75 7,089 1,344 81 5,803 0.52 0.1 13 0.81 1,200 21 4 (1)
0.75 to <2.50 5,772 1,643 81 4,111 1.38 0.2 31 0.75 3,173 77 17 (1)
0.75 to <1.75 4,699 1,247 76 3,135 1.18 0.1 34 0.82 2,279 73 13 –
1.75 to <2.5 1,073 396 97 976 2.03 – 23 0.53 894 92 5 (1)
2.50 to <10.00 1,794 1,058 100 1,772 4.06 0.1 13 0.25 959 54 8 –
2.5 to <5 1,650 763 99 1,519 3.45 0.1 14 0.27 771 51 8 –
5 to <10 144 295 100 254 7.69 – 4 0.16 187 74 1 –
10.00 to <100.00 299 484 27 204 13.78 – 21 0.28 332 163 6 –
10 to <20 299 484 27 204 13.76 – 21 0.28 331 162 6 –
20 to <30 – – – – – – – – – – – –
30.00 to <100.00 – – – – 33.00 – 45 1.00 1 – – –
100.00 (Default) 61 5 53 17 100.00 – 35 1.44 63 371 1 (1)
Total 57,686 21,704 65 69,637 0.34 1.2 32 0.91 12,143 17 47 (9)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 42,348 21,469 42 53,997 0.05 0.6 35 1.03 5,805 11 9 (4)
0.00 to <0.10 38,091 19,546 43 49,340 0.04 0.5 35 1.07 4,915 10 7 (3)
0.10 to <0.15 4,257 1,924 36 4,658 0.13 0.1 31 0.54 890 19 2 (1)
0.15 to <0.25 1,649 1,319 56 2,048 0.22 0.1 27 0.55 533 26 1 –
0.25 to <0.50 491 554 74 893 0.39 0.1 29 0.91 414 46 1 –
0.50 to <0.75 5,894 965 50 4,596 0.52 0.1 19 0.83 1,456 32 5 (1)
0.75 to <2.50 6,047 1,581 72 4,109 1.30 0.2 28 0.59 2,674 65 14 (1)
0.75 to <1.75 5,431 1,270 71 3,541 1.19 0.2 29 0.62 2,343 66 12 (1)
1.75 to <2.5 616 312 80 568 2.03 – 20 0.43 332 58 2 –
2.50 to <10.00 2,500 716 100 2,033 4.66 0.1 23 0.50 1,704 84 21 –
2.5 to <5 2,188 547 99 1,558 4.02 0.1 20 0.37 1,134 73 12 –
5 to <10 312 168 100 474 6.73 – 30 0.95 569 120 9 –
10.00 to <100.00 169 580 39 240 19.48 0.1 4 0.10 74 31 2 –
10 to <20 121 553 37 214 17.88 – 4 0.10 62 29 1 –
20 to <30 – – – – – – – – – – – –
30.00 to <100.00 48 27 80 25 33.00 – 7 0.16 12 48 1 –
100.00 (Default) 67 76 95 120 100.00 – 25 0.36 243 203 9 (9)
Total 59,165 27,260 47 68,036 0.55 1.3 32 0.95 12,903 19 62 (15)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued

Table 55: IRB approach – Credit risk exposures by exposure class and PD range for Corporates (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 46,628 139,433 26 117,942 0.07 4.4 41 1.50 18,906 16 33 (26)
0.00 to <0.10 34,146 98,877 26 94,290 0.05 2.8 42 1.50 13,640 14 22 (20)
0.10 to <0.15 12,482 40,555 27 23,652 0.13 1.5 37 1.47 5,267 22 12 (6)
0.15 to <0.25 15,128 40,226 23 22,716 0.22 2.1 38 1.39 7,162 32 19 (6)
0.25 to <0.50 9,635 32,445 28 17,747 0.39 1.7 33 1.32 6,660 38 22 (7)
0.50 to <0.75 14,088 36,919 22 19,757 0.57 2.5 36 1.33 10,118 51 41 (13)
0.75 to <2.50 10,407 26,347 23 13,986 1.35 3.9 34 1.54 10,866 78 73 (25)
0.75 to <1.75 7,659 21,361 23 10,821 1.15 2.8 32 1.52 6,737 62 44 (14)
1.75 to <2.5 2,748 4,986 20 3,164 2.03 1.1 39 1.72 4,130 131 29 (10)
2.50 to <10.00 7,032 9,847 24 6,797 4.31 2.5 33 1.28 7,291 107 97 (40)
2.5 to <5 5,674 7,920 25 5,516 3.72 1.8 33 1.30 5,547 101 68 (29)
5 to <10 1,357 1,928 19 1,282 7.11 0.8 33 1.20 1,743 136 28 (10)
10.00 to <100.00 3,261 1,966 27 1,556 18.85 2.1 32 1.93 2,650 170 92 (96)
10 to <20 2,190 1,707 25 943 13.74 2.0 33 1.24 1,447 153 41 (35)
20 to <30 861 142 40 445 24.55 – 25 3.64 987 222 38 (51)
30.00 to <100.00 210 117 28 168 33.03 0.1 24 1.04 215 128 13 (9)
100.00 (Default) 3,121 1,904 33 3,089 100 0.7 56 1.23 955 31 2,344 (2,570)
Total 109,300 289,087 25 203,590 2.05 19.9 39 1.45 64,608 32 2,721 (2,783)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 51,328 148,578 22 103,107 0.07 4.3 41 1.41 16,866 16 29 (10)
0.00 to <0.10 41,576 114,418 22 86,025 0.06 2.9 42 1.37 12,221 14 19 (7)
0.10 to <0.15 9,752 34,160 21 17,084 0.13 1.4 41 1.63 4,645 27 9 (4)
0.15 to <0.25 15,327 42,674 22 22,590 0.22 2.1 35 1.43 7,017 31 17 (10)
0.25 to <0.50 7,733 29,042 27 14,463 0.39 1.4 37 1.27 6,442 45 20 (9)
0.50 to <0.75 14,573 42,143 23 22,552 0.56 2.7 37 1.31 12,000 53 48 (33)
0.75 to <2.50 11,815 26,309 23 14,327 1.29 4.0 34 1.39 9,973 70 62 (33)
0.75 to <1.75 9,101 21,832 24 11,914 1.14 3.0 34 1.37 7,908 66 44 (21)
1.75 to <2.5 2,713 4,476 22 2,413 2.03 1.0 33 1.47 2,066 86 16 (12)
2.50 to <10.00 7,170 9,330 22 6,480 4.26 2.8 34 1.25 6,492 100 92 (41)
2.5 to <5 5,913 7,641 22 5,155 3.63 2.0 35 1.26 5,123 99 65 (28)
5 to <10 1,257 1,689 20 1,325 6.82 0.9 30 1.22 1,370 103 27 (13)
10.00 to <100.00 2,153 7,571 7 1,493 17.90 2.3 37 1.04 2,634 176 96 (39)
10 to <20 1,814 7,273 7 1,208 14.71 2.2 36 1.14 2,002 166 63 (21)
20 to <30 85 191 18 119 24.55 0.1 45 0.71 295 248 13 (12)
30.00 to <100.00 255 106 40 165 33.40 0.1 35 1.45 338 205 19 (7)
100.00 (Default) 3,754 1,665 30 3,613 100.00 1.0 55 1.16 2,198 61 2,941 (3,011)
Total 113,853 307,312 39 188,625 2.46 20.6 39 1.37 63,622 34 3,305 (3,186)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued Table 56: IRB approach – Credit risk exposures by exposure class and PD range for Corporates – Other (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 41,741 133,829 26 112,194 0.07 4.1 42 1.42 18,104 16 32 (25)
0.00 to <0.10 31,165 95,184 26 90,383 0.05 2.6 43 1.43 13,133 15 21 (20)
0.10 to <0.15 10,576 38,644 27 21,811 0.13 1.4 38 1.35 4,971 23 11 (5)
0.15 to <0.25 11,648 37,502 22 19,135 0.22 1.8 39 1.17 6,225 33 17 (5)
0.25 to <0.50 6,391 29,597 28 14,323 0.39 1.5 34 1.31 5,725 40 19 (6)
0.50 to <0.75 11,967 33,089 22 17,301 0.57 2.0 38 1.24 9,326 54 38 (12)
0.75 to <2.50 7,748 23,591 23 11,602 1.36 3.1 36 1.39 9,770 84 66 (17)
0.75 to <1.75 5,486 19,464 23 8,817 1.15 2.2 34 1.39 5,862 66 39 (11)
1.75 to <2.5 2,262 4,127 21 2,785 2.03 0.9 43 1.41 3,908 140 27 (6)
2.50 to <10.00 5,378 9,148 23 5,404 4.31 1.4 34 1.15 6,387 118 82 (22)
2.5 to <5 4,476 7,426 24 4,534 3.73 1.1 34 1.19 4,938 109 59 (18)
5 to <10 901 1,721 18 870 7.33 0.4 34 0.96 1,449 167 22 (4)
10.00 to <100.00 2,272 1,737 28 1,124 20.19 1.3 34 1.59 2,217 197 77 (72)
10 to <20 1,735 1,575 26 588 13.88 1.2 34 1.04 1,082 184 29 (17)
20 to <30 332 56 75 374 24.56 – 40 2.74 931 249 36 (46)
30.00 to <100.00 206 106 28 161 33.03 0.1 23 0.94 204 127 12 (9)
100.00 (Default) 1,951 1,798 34 2,114 100 0.5 60 1.30 805 38 1,623 (1,838)
Total 89,096 270,291 25 183,197 1.64 15.7 40 1.36 58,559 32 1,954 (1,997)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 47,218 140,433 22 98,631 0.07 4.1 43 1.33 16,357 17 28 (9)
0.00 to <0.10 38,752 108,508 23 83,328 0.06 2.8 43 1.30 11,969 14 19 (6)
0.10 to <0.15 8,466 31,925 20 15,303 0.13 1.3 43 1.54 4,388 29 9 (3)
0.15 to <0.25 11,452 37,445 22 18,450 0.22 1.7 37 1.21 6,001 33 15 (6)
0.25 to <0.50 6,694 26,592 26 12,807 0.39 1.2 38 1.23 6,015 47 19 (8)
0.50 to <0.75 12,136 38,615 23 20,160 0.56 2.1 39 1.20 11,123 55 44 (27)
0.75 to <2.50 9,396 23,730 23 12,124 1.29 3.1 35 1.33 9,041 75 55 (22)
0.75 to <1.75 7,075 19,823 24 10,061 1.14 2.3 35 1.29 7,162 71 40 (15)
1.75 to <2.5 2,320 3,907 20 2,063 2.03 0.8 35 1.51 1,879 91 14 (7)
2.50 to <10.00 5,273 8,625 21 5,150 4.29 1.4 36 1.05 5,673 110 78 (24)
2.5 to <5 4,346 7,123 21 4,125 3.66 1.1 37 1.07 4,505 109 56 (15)
5 to <10 927 1,502 22 1,025 6.83 0.4 31 0.98 1,168 114 22 (9)
10.00 to <100.00 1,744 7,018 7 1,138 17.52 1.4 37 0.96 2,202 193 76 (33)
10 to <20 1,469 6,738 7 924 14.98 1.3 37 0.93 1,692 183 51 (16)
20 to <30 82 188 18 116 24.55 0.1 46 0.70 294 253 13 (12)
30.00 to <100.00 193 92 40 98 33.26 0.1 34 1.57 217 221 11 (6)
100.00 (Default) 2,729 1,425 32 2,763 100.00 0.8 59 1.28 1,858 67 2,444 (2,454)
Total 96,642 283,883 22 171,223 2.11 15.8 41 1.29 58,270 34 2,759 (2,583)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued Table 57: IRB approach – Credit risk exposures by exposure class and PD range for corporates – specialised lending (UK CR6)

Original
Off-balance
on-balance
sheet
EAD post
sheet
exposure pre
Average
CRM and
Average
Number of
Average
Average
PD1
obligors2
LGD1
maturity1
exposure
CCF
CCF
post CCF		 RWA
\$million
780		 RWA
density1
%		 Expected
loss		 Value
adjustments
and
PD range %
\$million
\$million
%
\$million
%
thousands
%
years		 \$million provisions
\$million
0.00 to <0.15
4,831
5,225
30
5,582
0.09
0.3
23
2.91		 14 1 (1)
0.00 to <0.10
2,980
3,449
33
3,808
0.07
0.2
23
2.84		 503 13 1 –
0.10 to <0.15
1,851
1,776
23
1,774
0.13
0.1
22
3.06		 277 16 1 (1)
0.15 to <0.25
3,350
2,512
36
3,397
0.22
0.2
25
3.20		 912 27 2 (1)
0.25 to <0.50
3,137
2,675
33
3,279
0.39
0.1
25
1.42		 913 28 3 (1)
0.50 to <0.75
1,969
3,510
25
2,197
0.57
0.1
25
2.14		 738 34 3 (1)
0.75 to <2.50
2,058
2,161
19
1,647
1.24
0.1
21
2.78		 746 45 4 (7)
0.75 to <1.75
1,724
1,407
23
1,442
1.13
0.1
21
2.65		 645 45 3 (3)
1.75 to <2.5
334
754
11
204
2.03
–
16
3.74		 101 50 1 (4)
2.50 to <10.00
878
402
45
634
4.11
–
25
2.90		 520 82 7 (13)
2.5 to <5
725
282
44
514
3.62
–
21
2.71		 330 64 4 (7)
5 to <10
153
121
46
121
6.19
–
40
3.71		 190 157 3 (6)
10.00 to <100.00
666
81
17
163
13.45
–
21
3.92		 180 110 4 (22)
10 to <20
172
14
5
130
10.54
–
23
3.77		 144 111 3 (17)
20 to <30
494
67
20
34
24.55
–
17
4.50		 35 103 1 (5)
30.00 to <100.00
–
–
–
–
–
–
–
–		 – – – –
100.00 (Default)
878
58
32
677
100
–
38
0.93		 22 3 484 (494)
Total
17,767
16,624
29
17,576
4.46
0.8
24
2.51		 4,811 27 508 (540)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 4,086 7,879 18 4,331 0.10 0.2 19 2.62 490 11 1 (1)
0.00 to <0.10 2,821 5,680 11 2,583 0.07 0.1 18 2.57 244 9 – (1)
0.10 to <0.15 1,265 2,199 36 1,749 0.13 0.1 20 2.69 246 14 – (1)
0.15 to <0.25 3,610 4,713 22 3,781 0.22 0.2 24 2.68 913 24 2 (4)
0.25 to <0.50 989 2,388 36 1,603 0.39 0.1 23 1.69 421 26 1 (1)
0.50 to <0.75 2,124 3,240 22 1,996 0.58 0.1 24 2.33 738 37 3 (6)
0.75 to <2.50 1,717 1,956 26 1,351 1.25 0.1 26 2.01 685 51 4 (11)
0.75 to <1.75 1,480 1,464 22 1,168 1.12 0.1 27 2.12 588 50 3 (6)
1.75 to <2.5 237 491 38 183 2.03 – 22 1.30 97 53 1 (5)
2.50 to <10.00 1,169 477 35 623 3.77 – 21 3.02 422 68 5 (15)
2.5 to <5 1,075 347 47 548 3.38 – 20 2.93 350 64 4 (12)
5 to <10 94 130 1 75 6.63 – 24 3.68 72 96 1 (3)
10.00 to <100.00 135 472 1 89 25.25 – 33 2.14 159 179 7 (3)
10 to <20 78 471 1 32 11.35 – 36 4.19 59 184 1 (3)
20 to <30 – – 100 – 24.55 – 15 3.12 – – – –
30.00 to <100.00 57 – – 57 33.00 – 31 1.00 100 175 6 –
100.00 (Default) 787 148 6 580 100.00 – 37 0.74 169 29 317 (373)
Total 14,617 21,273 20 14,354 4.69 0.7 23 2.37 3,997 28 340 (414)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued Table 58: IRB approach – Credit risk exposures by exposure class and PD range for corporates – SME (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 56 379 5 166 0.08 – 33 2.17 22 13 – –
0.00 to <0.10 1 244 4 99 0.04 – 16 2.32 4 4 – –
0.10 to <0.15 55 135 8 67 0.13 – 58 1.93 19 28 – –
0.15 to <0.25 130 212 26 184 0.23 0.1 19 1.55 25 14 – –
0.25 to <0.50 107 173 23 145 0.40 0.1 18 1.20 22 15 – –
0.50 to <0.75 152 320 37 259 0.64 0.4 20 0.97 54 21 – –
0.75 to <2.50 601 595 27 737 1.47 0.7 31 1.10 350 47 3 (1)
0.75 to <1.75 449 490 27 562 1.29 0.5 29 1.15 230 41 2 –
1.75 to <2.5 152 105 28 175 2.08 0.2 37 0.95 121 69 1 –
2.50 to <10.00 776 297 15 759 4.62 1.1 25 1.15 384 51 8 (5)
2.5 to <5 473 212 17 468 3.62 0.7 31 1.22 279 60 5 (4)
5 to <10 303 86 10 291 6.24 0.4 15 1.04 104 36 3 –
10.00 to <100.00 323 148 18 269 15.98 0.8 27 1.65 253 94 11 (2)
10 to <20 283 118 19 225 14.06 0.8 30 1.69 221 98 9 (1)
20 to <30 35 19 9 37 24.48 – 12 1.16 21 57 1 –
30.00 to <100.00 4 11 25 7 33.00 – 38 3.07 11 157 1 –
100.00 (Default) 292 48 15 298 100 0.2 58 1.34 128 43 237 (238)
Total 2,437 2,172 22 2,817 13.83 3.4 29 1.28 1,238 44 259 (246)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 24 266 52 145 0.07 – 33 1.06 19 13 – –
0.00 to <0.10 3 230 56 114 0.06 – 27 0.54 8 7 – –
0.10 to <0.15 21 36 25 32 0.13 – 53 2.90 11 34 – –
0.15 to <0.25 265 516 18 359 0.23 0.2 35 2.20 103 29 – –
0.25 to <0.50 50 62 8 53 0.41 0.1 14 1.28 6 11 – –
0.50 to <0.75 313 288 32 396 0.62 0.5 32 1.50 139 35 1 –
0.75 to <2.50 702 623 27 852 1.35 0.8 21 1.17 247 29 3 –
0.75 to <1.75 546 545 28 685 1.17 0.6 18 1.20 158 23 1 –
1.75 to <2.5 156 78 23 167 2.09 0.2 34 1.04 90 54 1 –
2.50 to <10.00 728 228 16 707 4.73 1.4 28 1.11 397 56 9 (2)
2.5 to <5 492 171 17 482 3.71 0.9 30 1.03 268 56 5 (1)
5 to <10 236 57 13 225 6.93 0.5 24 1.29 130 58 4 (1)
10.00 to <100.00 274 81 19 266 14.64 0.9 34 1.19 273 103 13 (3)
10 to <20 267 64 16 252 13.63 0.9 33 1.20 251 100 11 (2)
20 to <30 3 3 2 3 24.55 – 4 1.00 1 33 – –
30.00 to <100.00 5 14 38 10 36.76 – 56 1.00 21 210 2 (1)
100.00 (Default) 238 92 37 270 100.00 0.2 48 0.86 171 63 180 (184)
Total 2,594 2,156 26 3,048 11.72 4.1 30 1.29 1,355 44 206 (189)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued

Table 59: IRB approach – Credit risk exposures by exposure class and PD range for retail (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 61,964 15,878 51 69,401 0.07 1,097.0 29 3,097 4 27 (10)
0.00 to <0.10 53,479 10,602 52 58,240 0.06 815.3 27 2,430 4 21 (7)
0.10 to <0.15 8,484 5,275 51 11,162 0.12 281.7 41 669 6 5 (3)
0.15 to <0.25 6,054 2,203 49 7,122 0.19 125.8 28 640 9 6 (2)
0.25 to <0.50 5,240 3,671 48 6,976 0.36 271.1 54 1,470 21 13 (6)
0.50 to <0.75 3,965 3,759 46 5,695 0.65 247.9 62 1,986 35 26 (10)
0.75 to <2.50 4,967 4,066 33 6,228 1.39 628.0 58 3,164 51 54 (32)
0.75 to <1.75 3,683 3,327 35 4,800 1.24 501.1 61 2,296 48 37 (24)
1.75 to <2.5 1,284 739 22 1,426 2.10 126.8 51 870 61 17 (7)
2.50 to <10.00 3,798 2,194 40 4,631 4.24 485.5 70 4,406 95 143 (63)
2.5 to <5 2,642 1,740 41 3,333 3.11 305.1 72 2,915 87 79 (31)
5 to <10 1,156 456 36 1,299 7.09 180.6 67 1,490 115 64 (30)
10.00 to <100.00 1,256 350 30 1,350 25.25 130.1 63 2,086 155 209 (75)
10 to <20 821 279 29 893 14.59 84.0 66 1,394 156 93 (34)
20 to <30 120 35 36 132 24.37 18.5 65 247 187 21 (8)
30.00 to <100.00 313 38 31 324 55.87 27.5 50 444 137 95 (31)
100.00 (Default) 739 153 4 745 100.00 42.2 50 1,231 165 267 (203)
Total 87,983 32,274 47 102,148 1.47 3,028 31 18,080 18 745 (401)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 57,468 17,084 49 65,921 0.07 1,173.9 31 2,582 4 12 (9)
0.00 to <0.10 50,792 13,261 49 57,210 0.06 949.9 30 2,056 4 8 (7)
0.10 to <0.15 6,675 3,823 53 8,710 0.12 224.1 41 526 6 3 (2)
0.15 to <0.25 5,192 3,169 43 6,560 0.19 210.6 36 655 10 3 (3)
0.25 to <0.50 3,915 2,818 51 5,326 0.34 214.7 55 1,084 20 9 (6)
0.50 to <0.75 4,165 4,246 49 6,214 0.65 257.5 62 2,107 34 21 (9)
0.75 to <2.50 5,866 4,815 29 7,224 1.44 742.5 62 4,256 59 61 (39)
0.75 to <1.75 4,402 3,791 32 5,556 1.26 536.5 63 3,027 54 42 (26)
1.75 to <2.5 1,463 1,024 21 1,670 2.13 206.0 60 1,230 74 21 (12)
2.50 to <10.00 5,124 2,932 38 6,218 4.42 758.6 70 5,860 94 186 (84)
2.5 to <5 3,358 2,262 41 4,248 3.18 471.7 72 3,783 89 96 (43)
5 to <10 1,766 671 33 1,970 7.17 286.9 64 2,078 105 89 (40)
10.00 to <100.00 1,248 444 28 1,360 26.21 216.9 65 2,064 152 223 (84)
10 to <20 758 348 29 851 13.76 136.5 69 1,324 156 83 (32)
20 to <30 132 36 35 143 23.80 31.7 66 263 184 22 (10)
30.00 to <100.00 357 61 21 367 59.45 48.6 54 476 130 119 (43)
100.00 (Default) 638 189 4 645 100.00 51.3 52 1,082 168 241 (171)
Total 83,616 35,697 45 99,468 1.52 3,626.0 34 19,690 20 756 (405)

2024

1 Weighted averages are based on EAD.

real estate property – SME (UK CR6)

3.5 Risk grade profile continued Table 60: IRB approach – Credit risk exposures by exposure class and PD range for retail – secured by

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 63 – 100 63 0.10 0.5 15 2 3 – –
0.00 to <0.10 35 – 100 35 0.08 0.3 15 1 3 – –
0.10 to <0.15 27 – – 27 0.13 0.2 15 1 4 – –
0.15 to <0.25 40 11 61 47 0.18 0.2 12 2 4 – –
0.25 to <0.50 21 – 87 21 0.39 0.2 5 1 5 – –
0.50 to <0.75 27 2 49 28 0.62 0.3 3 1 4 – –
0.75 to <2.50 117 23 36 125 1.49 0.6 2 3 2 – (1)
0.75 to <1.75 77 21 32 84 1.15 0.5 2 2 2 – (1)
1.75 to <2.5 40 2 82 41 2.20 0.1 3 2 5 – –
2.50 to <10.00 44 9 64 49 5.44 0.1 5 4 8 – –
2.5 to <5 20 6 50 23 3.77 0.1 7 2 9 – –
5 to <10 24 3 96 26 6.90 – 3 1 4 – –
10.00 to <100.00 23 3 75 26 16.80 0.1 4 2 8 – –
10 to <20 19 3 76 21 13.95 – 2 1 5 – –
20 to <30 3 – 100 3 26.50 – 14 1 33 – –
30.00 to <100.00 1 – 25 1 49.48 – 10 – – – –
100.00 (Default) 6 1 100 7 100.00 – 5 2 29 2 (1)
Total 341 49 51 366 4.39 2.0 6 17 5 2 (2)
2024
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 74 1 92 75 0.10 0.5 14 3 4 – –
0.00 to <0.10 38 1 88 39 0.07 0.3 15 1 3 – –
0.10 to <0.15 36 – – 36 0.13 0.2 14 2 6 – –
0.15 to <0.25 49 12 58 56 0.18 0.3 11 2 4 – –
0.25 to <0.50 29 1 63 30 0.38 0.3 3 1 3 – –
0.50 to <0.75 30 5 58 33 0.60 0.3 2 1 3 – –
0.75 to <2.50 70 21 51 81 1.39 0.5 2 2 2 – –
0.75 to <1.75 56 15 47 63 1.17 0.4 2 1 2 – –
1.75 to <2.5 14 6 61 18 2.16 0.1 3 1 6 – –
2.50 to <10.00 46 11 42 51 4.84 0.2 7 5 10 – –
2.5 to <5 17 4 76 20 3.13 0.1 5 2 10 – –
5 to <10 29 8 26 31 5.93 0.1 7 4 13 – –
10.00 to <100.00 12 2 72 13 20.38 0.1 5 2 15 – –
10 to <20 8 2 72 9 15.01 – 2 – – – –
20 to <30 3 – 100 3 26.56 – 13 1 33 – –
30.00 to <100.00 1 – 100 1 64.21 – 10 – – – –
100.00 (Default) 4 – 76 4 100.00 – 5 2 50 1 (2)
Total 314 53 53 343 3.15 2.2 7 18 5 1 (2)

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued

Table 61: IRB approach – Credit risk exposures by exposure class and PD range for retail – secured by real estate property Non SME (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 59,661 1,448 100 61,109 0.07 207.4 15 2,547 4 21 (1)
0.00 to <0.10 51,728 848 100 52,577 0.06 185.4 14 2,073 4 18 (1)
0.10 to <0.15 7,933 600 100 8,533 0.12 22.0 16 474 6 3 –
0.15 to <0.25 5,726 515 100 6,242 0.19 23.1 15 519 8 4 –
0.25 to <0.50 3,461 132 100 3,594 0.37 20.6 17 492 14 4 –
0.50 to <0.75 2,388 70 100 2,458 0.63 19.8 21 669 27 8 (1)
0.75 to <2.50 1,883 78 100 1,961 1.34 13.7 16 639 33 10 (1)
0.75 to <1.75 1,459 35 100 1,493 1.11 10.8 16 429 29 6 (1)
1.75 to <2.5 424 43 100 467 2.06 2.8 16 211 45 4 –
2.50 to <10.00 407 5 100 412 4.63 3.7 16 289 70 6 (1)
2.5 to <5 268 5 100 273 3.44 2.3 16 176 64 3 –
5 to <10 139 1 100 139 6.97 1.5 15 112 81 2 –
10.00 to <100.00 224 2 100 226 37.28 2.4 15 223 99 15 (4)
10 to <20 71 1 100 72 13.46 0.9 16 76 106 2 (1)
20 to <30 22 – 100 22 24.23 0.3 15 26 118 1 –
30.00 to <100.00 131 1 100 132 52.40 1.2 15 121 92 12 (2)
100.00 (Default) 279 – 100 279 100.00 2.6 22 405 145 33 (36)
Total 74,029 2,250 100 76,281 0.64 293.3 15 5,783 8 101 (44)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 56,138 978 100 57,117 0.07 209.0 15 2,060 4 6 (1)
0.00 to <0.10 49,955 614 100 50,570 0.06 188.3 16 1,715 3 5 (1)
0.10 to <0.15 6,182 364 100 6,547 0.12 20.7 15 345 5 1 –
0.15 to <0.25 4,744 352 100 5,096 0.19 21.2 14 404 8 1 –
0.25 to <0.50 2,531 110 100 2,642 0.35 15.3 18 379 14 2 –
0.50 to <0.75 2,672 99 100 2,771 0.61 25.0 20 683 25 3 –
0.75 to <2.50 1,808 84 100 1,892 1.34 13.9 16 606 32 4 –
0.75 to <1.75 1,408 37 100 1,445 1.11 10.9 16 413 29 3 –
1.75 to <2.5 400 47 100 447 2.08 3.0 17 194 43 2 –
2.50 to <10.00 368 4 100 372 4.75 3.8 15 238 64 3 –
2.5 to <5 236 3 100 239 3.48 2.3 16 141 59 1 –
5 to <10 133 1 100 133 7.02 1.5 14 97 73 1 –
10.00 to <100.00 210 2 100 213 37.32 2.3 16 213 100 12 (4)
10 to <20 69 1 100 71 13.72 1.0 18 80 113 2 (1)
20 to <30 20 – 100 21 24.41 0.3 19 28 133 1 –
30.00 to <100.00 120 1 100 121 53.28 1.1 14 106 88 9 (3)
100.00 (Default) 261 – 100 261 100.00 2.6 24 367 141 35 (35)
Total 68,732 1,629 100 70,364 0.65 293.1 16 4,950 7 66 (40)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued Table 62: IRB approach – Credit risk exposures by exposure class and PD range for retail – qualifying revolving (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 961 12,291 45 6,532 0.08 828.1 86 300 5 5 (7)
0.00 to <0.10 500 8,125 46 4,199 0.07 573.2 87 164 4 2 (4)
0.10 to <0.15 461 4,165 45 2,334 0.11 254.9 84 136 6 2 (3)
0.15 to <0.25 93 1,196 37 534 0.18 95.8 71 40 7 1 (1)
0.25 to <0.50 562 2,812 45 1,822 0.34 198.1 82 258 14 5 (4)
0.50 to <0.75 477 3,047 47 1,910 0.67 185.4 87 493 26 11 (6)
0.75 to <2.50 720 2,699 39 1,778 1.39 549.4 82 758 43 21 (18)
0.75 to <1.75 597 2,354 41 1,559 1.29 447.2 83 641 41 17 (14)
1.75 to <2.5 123 345 28 218 2.12 102.2 74 117 54 4 (3)
2.50 to <10.00 1,224 1,287 53 1,913 4.10 363.2 84 1,758 92 67 (33)
2.5 to <5 835 1,056 53 1,391 2.98 235.4 85 1,063 76 36 (17)
5 to <10 389 231 58 522 7.07 127.8 83 696 133 31 (16)
10.00 to <100.00 322 114 68 399 22.61 77.3 81 808 203 73 (24)
10 to <20 223 78 76 282 13.93 47.9 82 554 196 33 (11)
20 to <30 35 20 50 45 23.72 11.3 77 104 231 8 (3)
30.00 to <100.00 63 17 51 72 56.12 18.1 78 150 208 32 (10)
100.00 (Default) 135 – – 135 100.00 23.2 60 276 204 59 (36)
Total 4,494 23,446 45 15,023 2.35 2,320.5 84 4,691 31 242 (129)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 962 13,893 45 7,271 0.08 913.0 86 312 4 5 (7)
0.00 to <0.10 583 10,859 45 5,435 0.06 717.0 85 199 4 3 (5)
0.10 to <0.15 379 3,034 48 1,835 0.11 196.0 87 113 6 2 (2)
0.15 to <0.25 119 1,930 34 776 0.21 163.9 72 65 8 1 (2)
0.25 to <0.50 485 2,132 48 1,510 0.33 168.9 85 214 14 4 (4)
0.50 to <0.75 447 3,384 48 2,078 0.67 195.2 88 546 26 12 (6)
0.75 to <2.50 674 3,045 34 1,722 1.42 579.6 82 743 43 20 (18)
0.75 to <1.75 544 2,503 37 1,465 1.29 436.5 83 604 41 16 (13)
1.75 to <2.5 130 542 23 257 2.12 143.1 76 139 54 4 (4)
2.50 to <10.00 1,318 1,851 45 2,159 4.12 540.6 85 2,011 93 75 (38)
2.5 to <5 891 1,454 46 1,555 2.97 341.9 85 1,190 77 39 (20)
5 to <10 426 397 45 604 7.08 198.7 84 821 136 36 (18)
10.00 to <100.00 307 162 53 393 23.08 134.6 84 804 205 75 (25)
10 to <20 219 114 59 287 13.94 81.3 85 581 202 34 (12)
20 to <30 30 24 40 39 23.43 21.2 81 95 244 7 (3)
30.00 to <100.00 58 25 36 67 62.07 32.1 81 128 191 34 (10)
100.00 (Default) 101 1 – 101 100.00 27.8 67 213 211 51 (27)
Total 4,413 26,398 44 16,010 2.07 2,723.6 85 4,908 31 243 (127)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued Table 63: IRB approach – Credit risk exposures by exposure class and PD range for retail – SME (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 23 18 1 20 0.10 0.7 61 2 10 – –
0.00 to <0.10 10 7 2 9 0.07 0.4 60 1 11 – –
0.10 to <0.15 13 11 – 11 0.13 0.3 61 2 18 – –
0.15 to <0.25 71 156 6 77 0.20 0.7 43 10 13 – –
0.25 to <0.50 65 84 20 72 0.38 0.9 36 12 17 – –
0.50 to <0.75 112 99 3 99 0.63 1.4 45 29 29 – –
0.75 to <2.50 988 745 3 930 1.61 8.5 45 407 44 7 (2)
0.75 to <1.75 614 467 3 571 1.35 5.8 44 230 40 3 (1)
1.75 to <2.5 374 278 2 359 2.03 2.8 47 177 49 3 (1)
2.50 to <10.00 643 559 8 644 4.27 6.6 48 359 56 13 (2)
2.5 to <5 482 394 9 492 3.47 4.5 48 268 54 8 (1)
5 to <10 161 165 5 153 6.87 2.2 48 91 59 5 –
10.00 to <100.00 129 178 5 126 21.63 1.9 47 91 72 13 (2)
10 to <20 103 160 6 103 13.15 1.5 46 72 70 6 (1)
20 to <30 5 7 – 4 26.17 0.1 64 5 125 1 –
30.00 to <100.00 20 12 – 19 67.53 0.3 48 14 74 6 –
100.00 (Default) 147 152 3 151 100.00 1.5 64 287 190 87 (62)
Total 2,178 1,991 5 2,119 10.48 22.2 47 1,197 56 120 (68)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 28 15 2 24 0.09 0.9 63 3 13 – –
0.00 to <0.10 15 8 3 14 0.07 0.6 63 1 7 – –
0.10 to <0.15 13 7 2 10 0.12 0.4 63 2 20 – –
0.15 to <0.25 75 149 7 81 0.19 0.9 46 12 15 – –
0.25 to <0.50 74 68 3 55 0.38 1.5 46 13 24 – –
0.50 to <0.75 106 98 9 92 0.62 1.8 50 30 33 – –
0.75 to <2.50 909 874 2 857 1.57 9.2 48 396 46 6 (3)
0.75 to <1.75 622 582 2 582 1.36 6.6 48 255 44 4 (2)
1.75 to <2.5 286 292 2 276 2.00 2.6 49 141 51 3 (1)
2.50 to <10.00 629 533 5 615 4.49 6.9 50 362 59 14 (2)
2.5 to <5 442 359 5 436 3.52 4.4 50 250 57 8 (1)
5 to <10 187 174 5 179 6.83 2.5 51 112 63 6 –
10.00 to <100.00 136 209 6 135 25.27 2.3 51 105 78 17 (2)
10 to <20 98 182 7 102 12.94 1.7 52 78 76 7 (1)
20 to <30 6 4 – 4 25.28 0.1 65 5 125 1 –
30.00 to <100.00 32 23 – 29 67.83 0.4 47 21 72 9 (2)
100.00 (Default) 123 188 4 129 100.00 1.6 63 260 202 72 (54)
Total 2,080 2,134 4 1,988 10.33 25.1 50 1,181 59 109 (61)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued Table 64: IRB approach – Credit risk exposures by exposure class and PD range for retail – Non SME (UK CR6)

2025
PD range % Original
on-balance
sheet
exposure
\$million		 Off-balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 1,256 2,121 54 1,677 0.07 60.3 75 246 15 1 (2)
0.00 to <0.10 1,206 1,622 57 1,420 0.06 56.0 75 191 13 1 (2)
0.10 to <0.15 50 499 41 257 0.11 4.3 76 56 22 – –
0.15 to <0.25 124 325 30 222 0.20 6.0 73 69 31 1 (1)
0.25 to <0.50 1,131 643 52 1,467 0.37 51.3 77 707 48 4 (2)
0.50 to <0.75 961 541 44 1,200 0.65 41.0 75 794 66 7 (3)
0.75 to <2.50 1,259 521 34 1,434 1.45 55.8 78 1,357 95 16 (10)
0.75 to <1.75 936 450 35 1,093 1.25 36.8 78 994 91 11 (7)
1.75 to <2.5 323 71 25 341 2.08 18.9 77 363 106 6 (3)
2.50 to <10.00 1,480 334 40 1,613 4.40 111.9 81 1,996 124 57 (27)
2.5 to <5 1,037 279 42 1,154 3.31 62.8 82 1,406 122 32 (13)
5 to <10 443 56 29 459 7.16 49.1 78 590 129 26 (14)
10.00 to <100.00 558 53 28 573 24.36 48.4 78 962 168 108 (45)
10 to <20 405 37 27 415 15.65 33.7 79 691 167 52 (21)
20 to <30 55 8 33 58 25.01 6.8 75 111 191 11 (5)
30.00 to <100.00 98 8 26 100 59.99 7.9 75 159 159 45 (19)
100.00 (Default) 172 – 86 173 100.00 14.9 62 261 151 86 (68)
Total 6,941 4,538 47 8,359 5.01 389.6 77 6,392 76 280 (158)
PD range % Original on
balance
sheet
exposure
\$million		 Off
balance
sheet
exposure pre
CCF
\$million		 Average
CCF
%		 EAD post
CRM and
post CCF
\$million		 Average
PD1
%		 Number of
obligors2
thousands		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%		 Expected
loss
\$million		 Value
adjustments
and
provisions
\$million
0.00 to <0.15 266 2,197 53 1,434 0.06 50.5 76 204 14 1 (1)
0.00 to <0.10 201 1,779 53 1,152 0.05 43.7 76 140 12 – (1)
0.10 to <0.15 65 418 52 282 0.11 6.8 79 64 23 – –
0.15 to <0.25 205 726 48 551 0.18 24.3 78 172 31 1 (1)
0.25 to <0.50 796 507 58 1,089 0.34 28.7 73 477 44 3 (2)
0.50 to <0.75 910 660 50 1,240 0.68 35.2 76 847 68 6 (3)
0.75 to <2.50 2,405 791 34 2,672 1.52 139.3 75 2,509 94 31 (18)
0.75 to <1.75 1,772 654 35 2,001 1.31 82.1 74 1,754 88 19 (11)
1.75 to <2.5 633 137 28 672 2.16 57.2 81 755 112 12 (7)
2.50 to <10.00 2,763 533 48 3,021 4.76 207.1 69 3,244 107 94 (44)
2.5 to <5 1,772 442 51 1,998 3.45 123.0 73 2,200 110 48 (22)
5 to <10 991 91 35 1,023 7.32 84.1 62 1,044 102 46 (22)
10.00 to <100.00 583 69 34 606 26.63 77.6 75 940 155 119 (53)
10 to <20 364 49 36 382 13.46 52.5 77 585 153 40 (18)
20 to <30 73 8 37 76 23.83 10.1 70 134 176 13 (7)
30.00 to <100.00 146 12 23 149 61.85 15.0 73 221 148 67 (28)
100.00 (Default) 149 – 93 150 100.00 19.3 67 240 160 82 (53)
Total 8,077 5,483 49 10,763 4.73 582.0 74 8,633 80 337 (175)

2024

1 Weighted averages are based on EAD.

3.5 Risk grade profile continued

Table 65 sets out the allocation of exposures subject to the Standardised Approach laid down in Chapter 2 of Title II of Part Three and IRB Approach laid down in Chapter 3 of Title II of Part Three to the exposure classes as defined under the IRB Approach. This template excludes counterparty credit risk (CCR) exposures (Chapter 6 of Title II of Part Three CRR), and securitisation exposures.

Table 65: Scope of the use of IRB and SA approaches (UK CR6-A)

2025
Exposure value as
defined in Article
166 CRR for
exposures subject
to IRB approach
\$million		 Total exposure
value for
exposures
subject to the
Standardised
approach and to
the IRB approach
\$million		 Percentage
of total
exposure value
subject to the
permanent partial
use of the SA
%		 Percentage of
total exposure
value subject to
IRB Approach
%		 Percentage of
total exposure
value subject to a
roll-out plan
%
1 Central governments or central banks 180,278 231,658 21.61 77.82 –
1.1 Of which Regional governments or
local authorities		 – – – –
1.2 Of which Public sector entities 92 – 78.12 –
2 Institutions 71,707 82,827 2.82 86.57 –
3 Corporates 191,701 249,323 11.65 76.89 2.08
3.1 Of which Corporates – Specialised lending,
excluding slotting approach		 22,910 0.40 98.71 –
3.2 Of which Corporates – Specialised lending
under slotting approach		 9,717 – 100.00 –
3.3 Of which Corporates – SMEs 25,037 74.60 11.62 13.40
4 Retail 103,031 124,276 6.52 82.91 8.39
4.1 Of which Retail – Secured by real estate SMEs 626 1.12 58.44 –
4.2 Of which Retail – Secured by real estate
non-SMEs		 80,934 0.15 94.25 3.97
4.3 Of which Retail – Qualifying revolving 15,482 – 97.04 –
4.4 Of which Retail – Other SMEs 5,712 0.66 40.03 34.28
4.5 Of which Retail – Other non-SMEs 21,523 36.89 42.17 24.42
5 Equity – 1,244 – – –
6 Other non-credit obligation assets – – – – –
17 Total 546,718 689,329 12.99 79.31 2.26
2024
Exposure value as
defined in Article
166 CRR for
exposures subject
to IRB approach
\$million		 Total exposure
value for
exposures
subject to the
Standardised
approach and to
the IRB approach
\$million		 Percentage
of total
exposure value
subject to the
permanent partial
use of the SA
%		 Percentage of
total exposure
value subject to
IRB Approach
%		 Percentage of
total exposure
value subject to a
roll-out plan
%
1 Central governments or central banks 163,957 206,035 19.92 79.58 –
1.1 Of which Regional governments or
local authorities		 – – – –
1.2 Of which Public sector entities 391 – – –
2 Institutions 72,044 81,573 2.73 88.32 –
3 Corporates 191,202 225,678 10.20 84.72 2.19
3.1 Of which Corporates – Specialised lending,
excluding slotting approach		 19,341 0.14 99.86 –
3.2 Of which Corporates – Specialised lending
under slotting approach		 8,363 – 100.00 –
3.3 Of which Corporates – SMEs 3,181 19,862 72.01 16.02 15.76
4 Retail 99,646 120,678 5.24 82.57 9.01
4.1 Of which Retail – Secured by real estate SMEs 1,175 1.30 29.17 –
4.2 Of which Retail – Secured by real estate
non-SMEs		 74,813 0.18 94.05 3.94
4.3 Of which Retail – Qualifying revolving 16,374 – 97.78 –
4.4 Of which Retail – Other SMEs 6,400 0.45 33.85 54.08
4.5 Of which Retail – Other non-SMEs 21,916 28.05 49.11 20.36
5 Equity – 1,577 – – –
6 Other non-credit obligation assets – – – – –
17 Total 526,849 635,542 11.43 82.90 2.49

1 Comparatives for UK CR6-A have been restated to reflect the exposure class of standardised exposures which would change when under the IRB approach.

3.5 Risk grade profile continued

Table 66 sets out the slotting approach that is applied to financing of individual projects where the repayment is highly dependent on the performance of the underlying pool or collateral, known as specialised lending. It uses a standard set of rules for the calculation of RWAs, based upon an assessment of factors such as the financial strength of the counterparty. The requirements for the application of the Slotting approach are detailed in CRR article 153.

Table 66: Specialised lending and equity exposures under the simple risk weighted approach (UK CR10.2)

2025
Income-producing real estate and high volatility commercial real estate (Slotting approach)
Risk weighted
On-balance
Off-balance
exposure
sheet exposure
sheet exposure
Risk weight
Exposure value
amount
\$million
\$million
%
\$million
\$million
4,619
823
50
4,869
3,047
904
1,007
70
1,248
849
991
323
70
1,001
832
187
527
90
410
367
479
38
115
499
553
Remaining maturity Expected loss
amount
\$million
Category 1 Less than 2.5 years 13
Equal to or more than 2.5 years 5
Category 2 Less than 2.5 years 14
Equal to or more than 2.5 years 3
Category 3 Less than 2.5 years 14
Equal to or more than 2.5 years 53 – 115 53 61 1
Category 4 Less than 2.5 years 13 – 250 13 28 1
Equal to or more than 2.5 years – 107 250 57 142 5
Category 5 Less than 2.5 years 443 16 – 448 – 224
Equal to or more than 2.5 years 37 – – 37 – 19
Total Less than 2.5 years 6,544 1,201 6,829 4,459 266
Equal to or more than 2.5 years 1,181 1,642 1,806 1,419 33

2024

Income-producing real estate and high volatility commercial real estate (Slotting approach)

Remaining maturity On-balance
sheet exposure
\$million		 Off-balance
sheet exposure
\$million		 Risk weight
%		 Exposure value
\$million		 Risk weighted
exposure
amount
\$million		 Expected loss
amount
\$million
Category 1 Less than 2.5 years 3,667 714 50 3,795 2,371 –
Equal to or more than 2.5 years 1,304 1,092 70 1,607 1,102 6
Category 2 Less than 2.5 years 988 302 70 1,042 1,114 4
Equal to or more than 2.5 years 258 423 90 297 257 2
Category 3 Less than 2.5 years 568 8 115 569 830 16
Equal to or more than 2.5 years 1 1 115 1 1 –
Category 4 Less than 2.5 years 89 – 250 89 208 7
Equal to or more than 2.5 years – – 250 – 1 –
Category 5 Less than 2.5 years 257 5 – 257 – 128
Equal to or more than 2.5 years – – – – – –
Total Less than 2.5 years 5,569 1,029 5,752 4,523 155
Equal to or more than 2.5 years 1,563 1,516 1,904 1,360 9

3.6 Credit risk mitigation

Potential credit losses from any given account, customer or portfolio are mitigated using a range of tools such as collateral, netting agreements, credit insurance, credit derivatives and guarantees. For example, eligible financial collateral taken under eligible master netting agreements supported by a legal opinion may be netted against exposures. The reliance that can be placed on these mitigants is carefully assessed in light of issues such as legal certainty and enforceability, market valuation, correlation and credit risk of the guarantor. The presence of credit risk mitigation is not a substitute for the ability to pay, which is the primary consideration for any credit decision, but may influence credit limit sizing. Where appropriate, credit derivatives are used to reduce credit risks in the portfolio. Due to their potential impact on income volatility, such derivatives are used in a controlled manner with reference to their expected volatility. Collateral is held to mitigate credit risk exposures and risk mitigation policies determine the eligibility of collateral types. Potential concentration risk from the use of financial collaterals, guarantee and credit insurance is monitored through periodic risk reporting. The Group uses credit limits to record guarantees taken against each guarantor where a capital benefit is taken.

Our approach to credit risk mitigation can be found in the Risk management approach section of the 2025 Annual Report and Accounts on pages 226 to 227.

The table below shows the unfunded credit protection held by the Group, consisting of credit derivatives and guarantees, and funded credit protection, including financial collateral. Exposure class has been defined based on the guarantor of the exposure.

Table 67: CRM techniques overview: Disclosure of the use of credit risk mitigation techniques (UK CR3)

2025
Exposures
unsecured
\$million		 Exposures
secured
\$million		 Of which
secured by
collateral
\$million		 Of which secured
by financial
guarantees
\$million		 Of which secured
by credit
derivatives
\$million
1 Total loans 353,419 139,861 130,853 9,007 320
2 Total debt securities 168,058 730 90 639
3 Total exposures 521,477 140,591 130,943 9,647 320
4 Of which non-performing exposures 3,024 995 988 7 3
5 Of which defaulted 3,024 995
2024
Exposures
unsecured
\$million		 Exposures
secured
\$million		 Of which
secured by
collateral
\$million		 Of which secured
by financial
guarantees
\$million		 Of which secured
by credit
derivatives
\$million
1 Total loans 351,126 123,741 115,423 8,318 –
2 Total debt securities 145,600 201 105 96
3 Total exposures 496,726 123,942 115,528 8,414 –
4 Of which non-performing exposures 1,977 881 860 21 –
5 Of which defaulted 1,977 881

3.6 Credit risk mitigation continued

Table 68 presents the EAD before and after the effect of CRM, including credit substitution and financial collateral, with a further split into on-balance sheet and off-balance sheet exposures. Off-balance sheet exposures are presented before and after the application of standardised CCFs.

Table 68: Standardised approach – Credit risk exposure and CRM effects (UK CR4)

2025
Exposures before CCF and CRM1 Exposures post CCF and CRM RWA and RWA density
On-balance
sheet
\$million		 Off-balance
sheet
\$million		 On-balance
sheet
\$million		 Off-balance
sheet
\$million		 RWA
\$million		 RWA
density
%
Standardised Exposure Class
1 Central governments or
central banks		 26,274 272 27,356 754 1,777 6
2 Multilateral development banks 27,145 741 30,296 398 859 3
6 Institutions 15 356 7 – 4 57
7 Corporates 37,816 59,648 11,425 1,472 11,098 86
8 Retail 15,275 18,246 12,911 229 7,968 61
9 Secured on real estate property 8,633 270 8,538 128 3,967 46
10 Exposures in default 183 36 179 13 192 100
11 Items belonging to regulatory
high risk categories		 2,085 313 1,838 43 2,821 150
15 Equity 1,186 – 1,186 – 2,965 250
16 Other items2 17,874 332 20,115 301 10,199 50
17 Total Standardised3 136,486 80,214 113,851 3,338 41,850 36
2024
Exposures before CCF and CRM1 Exposures post CCF and CRM RWA and RWA density
On-balance
sheet
\$million		 Off-balance
sheet
\$million		 On-balance
sheet
\$million		 Off-balance
sheet
\$million		 RWA
\$million		 RWA
density
%
Standardised Exposure Class
1 Central governments or
central banks		 23,177 437 24,344 1,118 1,384 5
2 Multilateral development banks 20,430 1,075 23,462 157 1,058 4
6 Institutions 45 331 34 – 17 50
7 Corporates 18,691 35,946 11,513 1,063 9,451 75
8 Retail 14,777 20,994 10,641 254 7,825 72
9 Secured on real estate property 8,506 366 8,406 178 4,130 48
10 Exposures in default 198 51 195 28 223 100
11 Items belonging to regulatory
high risk categories		 1,254 566 1,203 64 1,901 150
15 Equity 868 – 868 – 2,169 250
16 Other items2 17,374 354 11,954 349 9,275 75
17 Total Standardised3 105,320 60,120 92,620 3,211 37,433 39

1 EAD before the effect of collateral and substitution.

2 Other items include public sector entities.

3 Refer to table 20 (OV1): Standardised approach \$37,456 million and amount below threshold for deduction \$4,395 million RWA.

3.6 Credit risk mitigation continued

Table 69: IRB approach – Effect on the RWEAs of credit derivatives used as CRM techniques (UK CR7)

2025 2024
Pre-credit
derivatives risk
weighted
exposure amount
\$million		 Actual risk
weighted
exposure amount
\$million		 Pre-credit
derivatives risk
weighted
exposure amount
\$million		 Actual risk
weighted
exposure amount
\$million
6 Central governments and central banks 21,328 21,328 21,958 21,958
7 Institutions 12,143 12,143 12,902 12,902
8 Corporates 70,467 70,467 69,490 69,490
8.1 Of Corporates – which SMEs 1,238 1,238 1,355 1,355
8.1 Of which Corporates – Specialised lending 10,669 10,669 9,865 9,865
9 Retail 18,083 18,083 19,692 19,692
9.1 Of which Retail – SMEs – Secured by immovable property
collateral		 18 18 18 18
9.2 Of which Retail – non-SMEs – Secured by immovable property
collateral		 5,783 5,783 4,952 4,952
9.3 Of which Retail – Qualifying revolving 4,692 4,692 4,908 4,908
9.4 Of which Retail – SMEs – Other 1,198 1,198 1,181 1,181
9.5 Of which Retail – Non-SMEs – Other 6,392 6,392 8,634 8,634
10 Total 122,021 122,021 124,043 124,043

Table 70: IRB approach – Disclosure of the extent of the use of CRM techniques (UK CR7-A)

2025
Credit risk Mitigation techniques Credit risk Mitigation
methods in the
calculation of RWEAs
Total Funded credit Protection (FCP) Unfunded credit
Protection (UFCP)
exposures
\$million		 Part of
exposures
covered
by
Financial
Collaterals
%		 Part of
exposures
covered
by Other
eligible
collaterals
%		 Part of
exposures
covered
by
Immovable
property
Collaterals
%		 Part of
exposures
covered
by
Receiva
bles
%		 Part of
exposures
covered
by Other
physical
collateral
%		 Part of
exposures
covered
by Other
funded
credit
protection
%		 Part of
exposures
covered
by Cash
on deposit
%		 Part of
exposures
covered
by Life
insurance
policies
%		 Part of
exposures
covered
by
Instru
ments
held by a
third
party
%		 Part of
exposures
covered
by
Guaran
tees
%		 Part of
exposures
covered
by Credit
Deriva
tives
%		 RWEA
without
sub
stitution
effects
(reduction
effects
only)
\$million		 RWEA
with sub
stitution
effects
(both
reduction
and sub
stitution
effects)
\$million
IRB Exposure Class
1 Central governments and
central banks		 180,287 – – – – – – – – – 5.3 – 21,825 21,328
2 Institutions 71,707 4.1 1.9 – – 1.9 1.7 – – – 10.5 – 11,848 12,143
3 Corporates 191,728 1.8 7.8 2.9 – 4.8 1.0 – – – 10.6 – 67,651 70,467
3.1 Of which Corporates –
SMEs		 2,909 3.5 40.4 39.8 – 0.5 – – – – 6.2 – 1,258 1,238
3.2 Of which Corporates –
Specialised lending		 32,332 0.5 15.9 0.3 0.1 15.4 1.1 – – – 19.0 – 11,541 10,669
3.3 Of which Corporates –
Other		 156,486 2.1 5.6 2.8 – 2.7 1.0 – – – 8.9 – 54,852 58,560
4 Retail 103,031 0.1 72.2 72.2 – – – – – – 0.9 – 18,219 18,083
4.1 Of which Retail –
Immovable property SMEs		 366 – 90.6 90.6 – – – – – – – – 18 18
4.2 Of which Retail –
Immovable property
non-SMEs		 76,280 – 97.1 97.1 – – – – – – – – 5,783 5,783
4.3 Of which Retail –
Qualifying revolving		 15,023 – – – – – – – – – – – 4,692 4,692
4.4 Of which Retail – Other
SMEs		 2,286 1.3 0.1 – – 0.1 – – – – 7.3 – 1,213 1,198
4.5 Of which Retail – Other
non-SMEs		 9,076 0.3 – – – – – – – – 7.9 – 6,514 6,392
5 Total 546,753 1.2 16.6 14.6 – 1.9 0.6 – – – 7.0 – 119,543 122,021

3.6 Credit risk mitigation continued

Table 70: IRB approach – Disclosure of the extent of the use of CRM techniques (UK CR7-A) continued

2024
Credit risk Mitigation techniques Credit risk Mitigation
methods in the
calculation of RWEAs
Total Funded credit Protection (FCP) Protection (UFCP) Unfunded credit RWEA
exposures1
\$million		 Part of
exposures
covered
by
Financial
Collaterals
%		 Part of
exposures
covered
by Other
eligible
collaterals
%		 Part of
exposures
covered by
Immovable
property
Collaterals
%		 Part of
exposures
covered
by
Receiva
bles
%		 Part of
exposures
covered
by Other
physical
collateral
%		 Part of
exposures
covered
by Other
funded
credit
protection
%		 Part of
exposures
covered
by Cash
on deposit
%		 Part of
exposures
covered
by Life
insurance
policies
%		 Part of
exposures
covered
byInstru
ments held
by a third
party
%		 Part of
exposures
covered
by
Guaran
tees
%		 Part of
exposures
covered
by Credit
Derivatives
%		 RWEA
without
sub
stitution
effects
(reduction
effects
only)
\$million		 with sub
stitution
effects
(both
reduction
and
sub
stitution
effects)
\$million
IRB Exposure Class
1 Central governments and
central banks		 163,957 – – – – – – – – – 4.9 – 21,236 21,958
2 Institutions 72,044 2.8 1.4 – – 1.3 2.2 – – – 10.3 – 13,089 12,903
3 Corporates 191,202 1.9 8.3 3.3 – 4.9 0.9 – – – 17.6 – 68,865 69,490
3.1 Of which Corporates –
SMEs		 3,181 4.2 39.9 39.3 – 0.5 – – – – 4.5 – 1,365 1,355
3.2 Of which Corporates –
Specialised lending		 27,676 0.7 16.1 0.4 0.2– 15.5 1.6 – – – 20.6 – 10,730 9,865
3.3 Of which Corporates –
Other		 160,344 2.0 6.3 3.1 – 3.1 0.8 – – – 17.4 – 56,770 58,270
4 Retail 99,646 – 67.3 67.3 – – – – – – 0.2 – 19,709 19,693
4.1 Of which Retail –
Immovable property SMEs		 343 – 89.5 89.5 – – – – – – – – 18 18
4.2 Of which Retail –
Immovable property
non-SMEs		 70,364 – 94.9 94.9 – – – – – – – – 4,952 4,952
4.3 Of which Retail –
Qualifying revolving		 16,010 – – – – – – – – – – – 4,908 4,908
4.4 Of which Retail – Other
SMEs		 2,166 1.0 – – – – – – – – 8.2 – 1,198 1,181
4.5 Of which Retail – Other
non-SMEs		 10,764 – – – – – – – – – – – 8,634 8,634
5 Total 526,849 1.1 15.9 13.9 – 1.9 0.6 – – – 9.4 – 122,898 124,044

1 2024 has been represented to show exposures on an obligor basis and for UFCP to include all exposures covered by UFCP and not just where the impact is taken through LGD.

3.7 Standardised risk weight profile

External ratings, where available, are used to assign risk weights for standardised approach (SA) exposures. These external ratings must come from EU approved rating agencies, known as External Credit Assessment Institutions (ECAI); which currently include Moody's, Standard & Poor's and Fitch. The Group uses the ECAI ratings from these agencies in its day-to-day business, which are tracked and kept updated. Assessments provided by approved ECAI are mapped to credit quality steps as prescribed by the CRR.

The following tables set out EAD and EAD after CRM associated with each risk weight as prescribed in Part Three, Title II, Chapter 2 of the CRR, including credit and counterparty credit risk regulatory risk weights based on the exposure classes applied to unrated exposures.

Standardised EAD post CRM and post CCF increased by \$21.4 billion driven by:

  • Central governments or central banks increased by \$2.6 billion
  • Public sector entities increased by \$8.4 billion
  • Multilateral development banks increased by \$7.1 billion
  • Retail increased by \$2.2 billion

3.7 Standardised risk weight profile continued Table 71: Standardised approach (UK CR5)

2025
Risk Weight Of which
0% 2% 4% 20% 35% 50% 75% 100% 150% 250% Others Deducted Total unrated
Standardised Exposure Class
1 Central governments or
central banks		 27,191 – – – – – – 347 – 572 – – 28,110 –
3 Public sector entities – – – 8,795 – – – – – – – – 8,795 –
4 Multilateral development
banks 28,944 – – 390 – 1,158 – 202 – – – – 30,694 –
6 Institutions – – – – – 7 – – – – – – 7 –
7 Corporates – – – 1,580 – 196 – 11,120 – – – – 12,896 11,083
8 Retail – – – 2,891 – – 10,248 – – – – – 13,139 10,525
9 Secured on real estate
property		 – – – – 7,045 – – 1,621 – – – – 8,666 8,666
10 Exposures in default – – – – – – – 192 – – – – 192 192
11 Items belonging to
regulatory high risk
categories		 – – – – – – – – 1,881 – – – 1,881 1,189
15 Equity – – – – – – – – – 1,186 – – 1,186 1,186
16 Other items1 3,208 – – 3 – – – 8,354 – – 58 – 11,623 3,064
17 Total Standardised 59,343 – – 13,659 7,045 1,361 10,248 21,836 1,881 1,758 58 – 117,189 35,905
2024
Risk Weight Of which
0% 2% 4% 20% 35% 50% 75% 100% 150% 250% Others Deducted Total unrated
Standardised Exposure Class
1 Central governments or
central banks		 24,755 – – 18 – 126 – 17 66 481 – – 25,463 –
3 Public sector entities – – – 393 – – – – – – – – 393 –
4 Multilateral development
banks		 21,374 – – 556 – 1,482 – 206 – – – – 23,618 –
6 Institutions – – – – – 34 – – – – – – 34 –
7 Corporates – – – 3,237 – 272 – 9,066 – – – – 12,575 9,471
8 Retail – – – – – – 10,895 – – – – – 10,895 10,895
9 Secured on real estate
property – – – – 6,601 – – 1,983 – – – – 8,584 8,584
10 Exposures in default – – – – – – – 223 – – – – 223 223
11 Items belonging to
regulatory high risk
categories		 – – – – – – – – 1,267 – – – 1,267 909

15 Equity – – – – – – – – – 868 – – 868 868 16 Other items1 2,663 – – 68 – 3 – 8,898 – – 277 – 11,909 3,194 17 Total Standardised 48,792 – – 4,272 6,601 1,917 10,895 20,393 1,333 1,349 277 – 95,829 34,144

1 Other items include cash, fixed assets, prepayments and accrued income.

3.8 Securitisation

Securitisation is defined by the CRR as a transaction or scheme where the credit risk of an exposure or pool of exposures is tranched and where the payments arising from the transaction or scheme are dependent upon the performance of the underlying exposure(s) and where the subordination of tranches determine the distribution of losses during the ongoing life of the transaction or the scheme.

Securitisation can be categorised as either:

  • Traditional securitisation: A securitisation involving the economic transfer of the exposures being securitised via the transfer of ownership of securitised exposures from the originator institution to a securitisation special purpose entity (SSPE), where the securitised assets are beyond the reach of the originator and its creditors. The purchase of the assets by the SSPE are usually funded via the issuance of securities where the payments obligations does not belong to the originator institution.
  • Synthetic transaction: A securitisation where the originator retains the ownership of the underlying exposure(s) and transfer the associated credit risk of the securitised exposures to third party through the use of credit derivatives or guarantees.

The Group has undertaken securitisation of its own originated assets to diversify sources of funding and capital management and may play one or more of the following roles in a securitisation transaction:

Originator – The Group securitised assets (Corporate loans , revolving credit facilities and trade finance facilities) originated in its normal course of business for capital and risk management and diversification of its sources of funding. The Group may be exposed to credit and market risk on the underlying assets, particularly if the structure of the transaction does not transfer these risks to third parties.

Investor – To generate financial returns, the group may purchase securitised issued by third-party SSPE or purchased securities from SSPE which it originates for market making purpose.

Arranger – The Group may act as arranger for securitisation transactions it originates or by its customers, usually financial institution or large corporates.

Underwriter – The Group may underwrite the securities issued by a SSPE originated by the Group or for its customers.

Credit Event Monitor Agent – Monitor the credit quality of the underlying securitised assets on behalf of the SSPE or investors

Account Bank – The Group may hold the bank account of a SSPE originated by the Group on its own books

Program Manager – Report on the performance of the securitised assets of the SSPE to investors

Servicer – Manage and service the asset pool of the securitisation transactions

The Group has \$32.6. billion (2024: \$32.2 billion) of EAD classified as securitisation positions, as shown in Table 72 on page 86. These transactions meet the criteria to qualify as securitisation positions under the PRA's securitisation framework and the particulars of these transactions are discussed below.

Asset Backed Securities

The carrying value of asset backed securities (ABS) of \$15.4 billion (2024: \$16.2 billion), held either as investments or arranged for clients, represents 2 per cent of the Group's total assets (2024: 2 per cent). This portfolio only constitutes third party securitisations and does not include self-securitisation (retained positions).

The portfolio primarily comprises of two main strategies, firstly, a mix of client-based and market making trades booked in Markets, and portfolios of liquid ABS investments for the Treasury Markets (TM) book.

The credit quality of the ABS portfolio remains strong, with over 94.3 per cent of the overall portfolio rated Investment Grade, and 97.5 per cent of the overall portfolio is rated as AAA. The portfolio is diversified across asset classes and geographies. Residential mortgage-backed securities (RMBS) make up 17.5 per cent of the overall portfolio and have a weighted averaged credit rating of AAA.

Other ABS include Auto ABS, comprising 5.8 per cent of the overall portfolio, CLOs (58.6 per cent) The balance of Other ABS mainly includes securities backed by Credit Cards, consumer loans, diversified payment rights, and receivables ABS.

The notional and carrying values of the ABS purchased or retained by the Group are shown in the table below analysed by underlying asset type. ABS are accounted for as financial assets. For further details regarding recognition and impairment, refer to the note 33 to the financial statements of the 2025 Annual Report and Accounts, page 416. The ABS portfolio is assessed frequently for objective evidence of impairment.

Valuation of retained interest is initially and subsequently determined using market price quotations where available or internal pricing models that utilise variables such as yield curves, prepayment speeds, default rates, loss severity, interest rate volatilities and spreads. The assumptions used for valuation are based on observable transactions in similar securities and are verified by external pricing sources, where available.

The ABS portfolio is closely managed by a centralised dedicated team. The team has developed a detailed analysis and reporting framework of the underlying portfolio to allow senior management to make an informed holding decision with regards to specific assets, asset classes or parts of an asset class. These ABS portfolio reports are closely monitored by the Risk function in the Group.

The notional and carrying values of the ABS purchased or retained by the Group are shown below in the table analysed by underlying asset type.

Syndicate & Portfolio Management Balance Sheet Securitisation

Synthetic Securitisation – Significant Risk Transfer (SRT) trades

The Group via its Syndicate and Portfolio Management (SPM) Balance Sheet Securitisation unit buys synthetic protection for its banking book credit portfolio. Securitisation provides capacity for client-focused growth and improves efficiency of economic and regulatory capital. The Group as the originator performs multiple roles, including protection buyer, calculation agent and credit event monitor agent. The protection buyer executes and maintains securitisation transactions. The calculation agent computes periodic coupon payments and loss payouts. The credit event monitor agent validates and provides notifications of credit events.

Treasury Markets unit performs a different role, acting as deposit taker for funds collected from the credit protection providers. Deposits collected eliminate counterparty risk for transactions where the Group is the protection buyer.

The securitised assets consist of commercial loans , revolving credit facilities and trade finance facilities extended by the Group's branches and subsidiaries to borrowers from the Group's footprint markets, including the emerging markets in Asia, Africa and Middle East. The securitised assets are subject to changes in general economic conditions, performance of relevant financial markets, political events and developments or trends in a particular industry. Historically, the trading volume of loans in these emerging markets has been small relative to other more developed debt markets due to limited liquidity in the secondary loan market.

The securitised assets are originated by the Group in its ordinary course of business. Given the synthetic nature of securitisations originated by SPM Balance Sheet Securitisation unit, the securitised assets remain on the Group's balance sheet and continue to be subject to the Group's credit review and monitoring process and risk methodology. Accordingly retained positions for regulatory risk retention purpose are not hedged.

In its role as credit event monitor agent, SPM Balance Sheet Securitisation unit monitors the credit risk of the underlying securitised assets by leveraging on the Group's client and risk management system.

As of 31 December 2025, \$0 million of Trade Finance (2024: \$0 million) and \$113 million of Commercial Loans (2024: \$29 million) totalling \$113 million (2024: \$29 million) of securitised exposures were classified as impaired and past due.

The Group has eighteen synthetic securitisation transactions originated and managed by SPM Balance Sheet Securitisation unit, with an aggregate hedge capacity of \$26 billion (2024: \$25 billion). SPM Balance Sheet Securitisation unit as the originator has not acted as sponsor to securitise third-party exposures and does not manage or advise any third-party entity that invests in the securitisation positions. Table 72 provides details of current securitisation programmes originated and managed by the Group.

The Group transfer credit risk of underlying securitised assets (Refer to Table 72) to non-consolidated securitisation special purpose entity (SSPE) via credit derivatives or via credit-linked notes issued by the bank. In the transactions involving the use of SSPE structure, the underlying assets are not sold into the relevant SSPE. Instead, the credit risk of the underlying assets is transferred to the SSPE synthetically via credit default swaps whereby the SSPEs act as sellers of credit protection and receive premiums paid by the Group in return. The SSPE in turn issue credit-linked notes to third party investors who fund the credit protection in exchange for coupon on the notes purchased. The premium received by the SSPE and interest earned on the funded amount of the purchased notes are passed through to the third-party investors as coupon on the purchased notes. Payment to the third-party investors is made in accordance with the priority of payments stipulated in the transaction documents.

Traditional Securitisation

The Group entered into traditional securitisation transaction to diversify its sources of funding. The Group originated a revolving cashflow traditional trade finance and lending securitisation transaction, which consolidated the SSPE (Prunelli Issuer S.a.r.l) into the Group's financials as required under IFRS 10 as the Group was deemed to have control over the SSPE. Assets sold to the SSPE continue to remain on the Group's balance sheet as they did not satisfy derecognition criteria under the Group's accounting policy.

As of 31 December 2025, the outstanding securitised exposures were \$2,292 million (2024: \$2,714 million).

Governance of securitisation activities

Securitisation transactions proposed for funding and capital management must obtain support from the Corporate & Investment Banking Financial Risk Committee ("CIB FRC"), which manages the capital requirements of the Group. From 1 January 2026 onwards, the CIB FRC transactional level approvals are to be within Group Chief Financial Officer approval overall quantum for significant risk transfer given its capital implications. For a securitisation transaction that will lead to reduction in regulatory capital, it must be submitted to UK PRA for review one-month post deal close.

Execution of each securitisation transaction must either be approved through a Product Programme (PPG) or an individual Transaction Programme Approval (TPA) where approvals across all functions involved in the transaction are obtained. Specifically, Compliance covers issues like confidentiality of clients' information and insider information, Group Tax provides an opinion on taxation, Group Finance advises on the capital and accounting treatment.

Basel III for securitisation positions

The calculation of risk-weighted exposure amounts for securitisation positions is based on the following two calculation methods advised by the PRA:

  • IRB method for third-party senior securitisation positions bought and securitisation positions originated and retained by the Group (including haircuts due to currency and collateral mismatch)
  • Standardised Approach for the residual risk-weighted exposure amounts for all other securitisation positions originated by the Group and sold. For instance, risk-weight substitution under the Standardised Approach is adopted in unfunded transactions where cash collateral is with a third party

The Synthetic securitisation transactions originated by the Group in Table 72 meet the Significant risk transfer requirement ("SRT") under the CRR. Where securitisations do not achieve SRT (for instance when they are entered into for funding purpose), their associated exposures will be presented in other sections of the Pillar 3 report. Synthetic Securitisation transactions (Table 72) are unrated as the bank utilised SEC-IRBA for risk capital calculation under CRR IV.

Accounting

Accounting assessment takes place at the time of transaction closing. The Group consolidate structured entities (including SSPE) when the substance of the relationship indicates control over the SSPE. The Group controls an entity if it has all the three elements of control which are i) power over the entity; ii) the ability to use its power over the entity to affect the returns of the Group and iii) exposure to variable returns from its involvement with the entity. The consolidation treatment is initially assessed at inception and is reassessed if circumstances indicate that there are changes to one or more of the three elements of control.

A securitisation transaction is recognised as a sale or partial sale where derecognition is achieved. The difference between the carrying amount and the consideration received is recorded in the income statement. Securitisation transactions which do not achieve derecognition are treated as financing activity. In a synthetic securitisation transaction, the underlying assets are not sold into the securitisation special purpose entity (SSPE). Instead, the underlying assets' performance is transferred into the SSPE through a synthetic instrument such as a CDS, a credit-linked note or a financial guarantee. Synthetic securitisation are assessed using the same accounting approach summarised above, with the associated credit derivative accounted as a financial guarantee under IFRS 9. As of both 31 December 2025 and 31 December 2024, no securitised assets have been derecognised from the Group's balance sheet.

Financial assets awaiting for securitisation are valued using the Group's accounting policy for financial instrument. There are no assets classify as awaiting securitisation for both 31 December 2025 and 31 December 2024.

Any financial support or contractual arrangements provided to unconsolidated entities for securitised assets would be recognised as a liability on balance sheet if it met the relevant IFRS criteria. The Group has not provided support to any securitisation transactions beyond its contractual obligations.

The Group's approach to accounting for SSPEs can be found in the notes to the financial statements in the 2025 Annual Report and Accounts.

Assets securitised under the Significant risk transfer (SRT) program by the Group's in its capacity as originator decreased by \$0.6 billion to \$14.7 billion.

The following tables shows the distribution of the Group's securitisation exposures across risk-weights. The vast majority of the Group's exposure to securitisation programmes is to the lower risk weighted tranches.

Table 72: Securitisation exposures in the non-trading book (UK-SEC1)

2025
Institution acts as originator Institution acts as sponsor Institution acts as investor
Traditional Synthetic Traditional Traditional
STS Non-STS
\$ million Of which
SRT
\$ million		 \$ million Of which
SRT
\$ million		 \$ million Of which
SRT
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million
1 Total exposures – – 664 – 14,717 14,717 15,381 – – – – 254 16,934 – 17,188
2 Retail (total) – – – – – – – – – – – 254 5,835 – 6,090
3 residential
mortgage		 – – – – – – – – – – – – 3,001 – 3,001
4 credit card – – – – – – – – – – – 52 145 – 197
5 other retail
exposures		 – – – – – – – – – – – 202 2,689 – 2,892
6 re-securitisation – – – – – – – – – – – – – – –
7 Wholesale (total) – – 664 – 14,717 14,717 15,381 – – – – – 11,099 – 11,099
8 loans to
corporates		 – – 664 – 13,324 13,324 13,988 – – – – – 9,716 – 9,716
9 commercial
mortgage		 – – – – – – – – – – – – 884 – 884
10 lease and
receivables		 – – – – 1,393 1,393 1,393 – – – – – 498 – 498
11 other wholesale – – – – – – – – – – – – – – –
12 re-securitisation – – – – – – – – – – – – – – –
2024
Institution acts as originator Institution acts as sponsor Institution acts as investor
Traditional Synthetic Traditional Traditional
STS Non-STS
\$ million Of which
SRT
\$ million		 \$ million Of which
SRT
\$ million		 \$ million Of which
SRT
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million
1 Total exposures – – 862 – 15,292 15,292 16,154 – – – – 267 15,768 – 16,035
2 Retail (total) – – – – – – – – – – – 267 4,853 – 5,120
3 residential
mortgage – – – – – – – – – – – 142 4,314 – 4,456
4 credit card – – – – – – – – – – – 125 88 – 213
5 other retail
exposures		 – – – – – – – – – – – – 451 – 451
6 re-securitisation – – – – – – – – – – – – – – –
7 Wholesale (total) – – 862 – 15,292 15,292 16,154 – – – – – 10,916 – 10,916
8 loans to
corporates		 – – 810 – 13,877 13,877 14,687 – – – – – 9,019 – 9,019
9 commercial
mortgage		 – – – – – – – – – – – – 669 – 669
10 lease and
receivables		 – – 52 – 1,415 1,415 1,467 – – – – – 1,228 – 1,228
11 other wholesale – – – – – – – – – – – – – – –
12 re-securitisation – – – – – – – – – – – – – – –

Table 73: Securitisation exposures in the trading book (UK-SEC2)

2025
Institution acts as originator Institution acts as sponsor Institution acts as investor
Traditional Traditional Traditional
STS
\$ million		 Non-STS
\$ million		 Sub-total
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Sub-total
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million
1 Total exposures – – – – – – – – 109 1,257 – 1,366
2 Retail (total) – – – – – – – – 105 818 – 923
3 residential mortgage – – – – – – – – 8 294 – 302
4 credit card – – – – – – – – 10 7 – 17
5 other retail exposures – – – – – – – – 88 517 – 605
6 re-securitisation – – – – – – – – – – – –
7 Wholesale (total) – – – – – – – – 3 439 – 442
8 loans to corporates – – – – – – – – – 255 – 255
9 commercial mortgage – – – – – – – – – 46 – 46
10 lease and receivables – – – – – – – – 3 138 – 142
11 other wholesale – – – – – – – – – – – –
12 re-securitisation – – – – – – – – – – – –
2024
Institution acts as originator Institution acts as sponsor Institution acts as investor
Traditional Traditional Traditional
STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million		 STS
\$ million		 Non-STS
\$ million		 Synthetic
\$ million		 Sub-total
\$ million
1 Total exposures - - - - - - - - 16 781 - 797
2 Retail (total) - - - - - - - - 8 249 - 256
3 residential mortgage - - - - - - - - 8 216 - 224
4 credit card - - - - - - - - - - - -
5 other retail exposures - - - - - - - - - 32 - 32
6 re-securitisation - - - - - - - - - - - -
7 Wholesale (total) - - - - - - - - 9 532 - 541
8 loans to corporates - - - - - - - - - 357 - 357
9 commercial mortgage - - - - - - - - - 27 - 27
10 lease and receivables - - - - - - - - 9 147 - 156
11 other wholesale - - - - - - - - - - - -
12 re-securitisation - - - - - - - - - - - -

Table 74: Securitisation exposures in the non-trading book and associated regulatory capital requirements – institution acting as originator or as sponsor (UK-SEC3)

2025
Exposure values (by RW bands/deductions) Exposure values (by regulatory approach) RWEA (by regulatory approach) Capital charge after cap
≤20%
RW
\$ million		 >20% to
50% RW
\$ million		 >50% to
100%
RW
\$ million		 >100%
to
<1250%
RW
\$ million		 1250%
RW/
deduc
tions
\$ million		 SEC-IR
BA
\$ million		 SEC
ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduc
tions
\$ million		 SEC-IR
BA
\$ million		 SEC
ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduc
tions
\$ million		 SEC-IR
BA
\$ million		 SEC
ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduc
tions
\$ million
1 Total exposures 12,300 2,417 – – – 14,717 – – – 2,779 – – – 222 – – –
2 Traditional
transactions		 – – – – – – – – – – – – – – – – –
3 Securitisation – – – – – – – – – – – – – – – – –
4 Retail
underlying		 – – – – – – – – – – – – – – – – –
5 Of which STS – – – – – – – – – – – – – – – – –
6 Wholesale – – – – – – – – – – – – – – – – –
7 Of which STS – – – – – – – – – – – – – – – – –
8 Re-securitisation – – – – – – – – – – – – – – – – –
9 Synthetic
transactions		 12,300 2,417 – – – 14,717 – – – 2,779 – – – 222 – – –
10 Securitisation 12,300 2,417 – – – 14,717 – – – 2,779 – – – 222 – – –
11 Retail
underlying		 – – – – – – – – – – – – – – – – –
12 Wholesale 12,300 2,417 – – – 14,717 – – – 2,779 – – – 222 – – –
13 Re-securitisation – – – – – – – – – – – – – – – – –
2024
Exposure values (by RW bands/deductions) Exposure values (by regulatory approach) RWEA (by regulatory approach) Capital charge after cap
≤20%
RW
\$ million		 >20% to
50% RW
\$ million		 >50% to
100%
RW
\$ million		 >100% to
<1250%
RW
\$ million		 1250%
RW/
deduc
tions
\$ million		 SEC-IRBA
\$ million		 SEC-ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduc
tions
\$ million		 SEC-IRBA
\$ million		 SEC-ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduc
tions
\$ million		 SEC-IRBA
\$ million		 SEC-ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduc
tions
\$ million
1 Total exposures 11,015 3,891 386 – – 15,292 – – – 3,096 – – – 227 – – –
2 Traditional
transactions		 – – – – – – – – – – – – – – – – –
3 Securitisation – – – – – – – – – – – – – – – – –
4 Retail
underlying		 – – – – – – – – – – – – – – – – –
5 Of which STS – – – – – – – – – – – – – – – – –
6 Wholesale – – – – – – – – – – – – – – – – –
7 Of which STS – – – – – – – – – – – – – – – – –
8 Re-securitisation – – – – – – – – – – – – – – – – –
9 Synthetic
transactions		 11,015 3,891 386 – – 15,292 – – – 3,096 – – – 227 – – –
10 Securitisation 11,015 3,891 386 – – 15,292 – – – 3,096 – – – 227 – – –
11 Retail
underlying		 – – – – – – – – – – – – – – – – –
12 Wholesale 11,015 3,891 386 – – 15,292 – – – 3,096 – – – 227 – – –
13 Re-securitisation – – – – – – – – – – – – – – – – –

Table 75: Securitisation exposures in the non-trading book and associated regulatory capital requirements – institution acting as investor (UK-SEC4)

2025
Exposure values (by RW bands/deductions) Exposure values (by regulatory approach) RWEA (by regulatory approach) Capital charge after cap
≤20%
RW
\$ million		 >20% to
50% RW
\$ million		 >50% to
100%
RW
\$ million		 >100%
to
<1250%
RW
\$ million		 1250%
RW/
deduc
tions
\$ million		 SEC-IR
BA
\$ million		 SEC
ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduct
ions
\$ million		 SEC-IR
BA
\$ million		 SEC
ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduct
ions
\$ million		 SEC-IR
BA
\$ million		 SEC
ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduct
ions
\$ million
1 Total exposures 16,203 664 318 4 – – 11,612 5,576 2 – 2,059 1,029 – – 165 82 –
2 Traditional
transactions		 16,203 664 318 4 – – 11,612 5,576 2 – 2,059 1,029 – – 165 82 –
3 Securitisation 16,203 664 318 4 – – 11,612 5,576 2 – 2,059 1,029 – – 165 82 –
4 Retail
underlying		 5,554 219 318 – – – 3,424 2,666 1 – 590 552 – – 47 44 –
5 Of which STS 254 – – – – – 120 135 – – 12 13 – – 1 1 –
6 Wholesale 10,649 445 – 4 – – 8,188 2,910 1 – 1,470 477 – – 118 38 –
7 Of which STS – – – – – – – – – – – – – – – –
8 Re-securitisation – – – – – – – – – – – – – – – – –
9 Synthetic
transactions		 – – – – – – – – – – – – – – – – –
10 Securitisation – – – – – – – – – – – – – – – – –
11 Retail
underlying		 – – – – – – – – – – – – – – – – –
12 Wholesale – – – – – – – – – – – – – – – – –
13 Re-securitisation – – – – – – – – – – – – – – – – –
2024
Exposure values (by RW bands/deductions) Exposure values (by regulatory approach) RWEA (by regulatory approach) Capital charge after cap
≤20%
RW
\$ million		 >20% to
50% RW
\$ million		 >50% to
100%
RW
\$ million		 >100% to
<1250%
RW
\$ million		 1250%
RW/
deduc
tions
\$ million		 SEC-IRBA
\$ million		 SEC-ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduct
ions
\$ million		 SEC-IRBA
\$ million		 SEC-ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduct
ions
\$ million		 SEC-IRBA
\$ million		 SEC-ERBA
(includ
ing IAA)
\$ million		 SEC-SA
\$ million		 1250%/
deduct
ions
\$ million
1 Total exposures 15,415 591 6 24 – – 12,211 3,824 – – 2,188 666 – – 175 53 –
2 Traditional
transactions		 15,415 591 6 24 – – 12,211 3,824 – – 2,188 666 – – 175 53 –
3 Securitisation 15,415 591 6 24 – – 12,211 3,824 – – 2,188 666 – – 175 53 –
4 Retail
underlying		 4,852 267 – – – – 3,152 1,968 – – 519 362 – – 42 29 –
5 Of which STS 267 – – – – – 142 125 – – 14 13 – – 1 1 –
6 Wholesale 10,563 324 6 24 – – 9,059 1,856 – – 1,669 304 – – 134 24 –
7 Of which STS – – – – – – – – – – – – – – – – –
8 Re-securitisation – – – – – – – – – – – – – – – – –
9 Synthetic
transactions		 – – – – – – – – – – – – – – – – –
10 Securitisation – – – – – – – – – – – – – – – – –
11 Retail
underlying		 – – – – – – – – – – – – – – – – –
12 Wholesale – – – – – – – – – – – – – – – – –
13 Re-securitisation – – – – – – – – – – – – – – – – –

Table 76: Exposures securitised by the institution – Exposures in default and specific credit risk adjustments (UK-SEC5)

2025 2024
Exposures securitised by the institution –
Institution acts as originator or as sponsor		 Exposures securitised by the institution –
Institution acts as originator or as sponsor
Total outstanding nominal amount Total amount of Total outstanding nominal amount Total amount of
\$million Of which
exposures in
default
\$million		 specific credit risk
adjustments made
during the period
\$million		 \$million Of which
exposures in
default
\$million		 specific credit risk
adjustments made
during the period
\$million
1 Total exposures 23,021 113 – 19,311 29 –
2 Retail (total) – – – – – –
3 residential mortgage – – – – – –
4 credit card – – – – – –
5 other retail exposures – – – – – –
6 re-securitisation – – – – – –
7 Wholesale (total) 23,021 113 – 19,311 29 –
8 loans to corporates 21,489 113 – 17,794 29 –
9 commercial mortgage 82 – – 77 – –
10 lease and receivables 1,450 – – 1,440 – –
11 other wholesale – – – – – –
12 re-securitisation – – – – – –

4. Traded risk

Our approach to Traded risk can be found in the Enterprise Risk Management approach section in the 2025 Annual Report and Accounts on pages 227 to 229.

4.1 Market risk

The primary categories of Market Risk for the Group are:

  • Interest Rate Risk: arising from changes in yield curves and implied volatilities
  • Foreign Exchange Rate Risk: arising from changes in currency exchange rates and implied volatilities
  • Commodity Risk: arising from changes in commodity prices and implied volatilities
  • Credit Spread Risk: arising from changes in the price of debt instruments and credit-linked derivatives, driven by factors other than the level of risk-free interest rates
  • Equity Risk: arising from changes in the prices of equities and implied volatilities

Valuation framework

Valuation of financial assets and liabilities held at fair value is subject to an independent review by Valuation Methodology within the Finance function. For those financial assets and liabilities whose fair value is determined by reference to externally quoted prices or market observable pricing inputs or to a valuation model, an assessment is made by Valuation Methodology against external market data and consensus services. Valuation Methodology also ensures adherence to the valuation adjustment policies to incorporate bid/ask spreads, model risk and other reserves, and, where appropriate, to mark all positions in accordance with prevailing accounting and regulatory guidelines.

The Valuation and Benchmarks Committee (VBC), a sub-committee of the Corporate and Institutional Banking Risk Committee, provides oversight and governance over price testing and valuation adjustments and reviews the results on a monthly basis. In addition, the VBC also provides governance over the Group's benchmark rates review process.

Our approach to market risk can be found in the Risk management approach section in the 2025 Annual Report and Accounts on pages 227 to 229.

Regulatory VaR

Regulatory VaR is used to estimate the potential loss, from market movements, across trading book positions for which the Bank has received permission to apply the internal model approach (IMA). Regulatory VaR, including Stressed VaR and Risk Not in VaR (RNIV) measures, is used to calculate market risk RWAs for positions falling under the IMA permission.

The PRA has granted the Group permission to apply IMA for the following entities:

Standard Chartered Bank Solo and consolidated
Standard Chartered Bank (Singapore) Ltd Consolidated
Standard Chartered Bank (Hong Kong) Ltd Consolidated
Standard Chartered Bank (China) Ltd Consolidated
Standard Chartered Bank Korea Ltd Consolidated
Standard Chartered Bank Malaysia Berhad Consolidated
Standard Chartered Bank (Taiwan) Ltd Consolidated
Standard Chartered Bank (Thai) PCL Consolidated
Standard Chartered Bank (Vietnam) Ltd Consolidated
Standard Chartered Bank AG Consolidated

Backtesting

Backtesting is performed to ensure that the VaR model is fit for purpose. It measures the ability of the model to correctly reflect the potential level of losses under normal trading conditions, for a certain confidence level.

A backtesting breach is recorded when the net trading P&L loss in one day is greater than the estimated VaR for the same day. For details see the further Pillar 3 disclosure on regulatory backtesting below.

Stressed VaR

Stressed VaR (sVaR) applies an equal-weighted (i.e., unscaled) model using a one-year historical stressed observation period relevant to the entity (i.e. Group or Solo). SCB has a quarterly sVaR window selection process which ensures that the stressed observation period is equivalent to the period that would maximise VaR given the entity's IMA portfolio. In Q1 and Q2 of 2025, the stressed period was the 260 business days ending 30 June 2009 reflecting the Global Financial Crisis. In Q3 and Q4 of 2025, the stressed period was the 260 business days ending 6 Jan 2017 reflecting the Chinese/African Stress Period.

4.1 Market risk continued

Stress testing

Group-wide stress testing is performed to measure the potential loss on a portfolio of financial positions due to low probability market events or risk to the Group posed by a breakdown of risk model assumptions.

Stress testing supplements the use of VaR as the primary measure of risk. The roles and responsibilities of the various business functions are set out in the Traded Risk Stress Testing standard.

Market risk changes

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 trading VaR in 2025 was \$25.4 million, 20 per cent higher than 2024 (\$21.1 million). The increase in trading average VaR was driven by an increase in market volatility combined with a VaR model enhancement to make the model more responsive to market volatility.

The average level of non-trading VaR in 2025 was \$47million, 37 per cent higher than 2024 (\$34.2 million). The increase in non-trading average VaR was driven by an increase in market volatility combined with a VaR model enhancement to make the model more responsive to market volatility, and larger US agency bonds inventory in the CIB non-trading portfolio.

Table 77: Market risk regulatory capital requirements

2025 2024
Market risk capital requirements for trading book Risk
Weighted
Assets
\$million		 Regulatory
capital
requirement
\$million		 Risk
Weighted
Assets
\$million		 Regulatory
capital
requirement
\$million
Interest rate1 12,072 966 9,493 759
Equity 121 10 20 2
Options 93 7 69 6
Commodity 507 41 479 38
Foreign exchange 4,363 349 3,748 300
Internal Models Approach 13,507 1,081 14,474 1,158
Total 30,663 2,453 28,283 2,263

1 Where the risks are not within the approved scope of the internal models approach, they are captured in the relevant category above based on the Standardised Approach.

Table 78: Market risk under standardised approach (UK MR1)

2025 2024
Risk
Weighted
Assets
\$million		 Risk
Weighted
Assets
\$million
Outright products
1 Interest rate risk (general and specific) 12,072 9,493
2 Equity risk (general and specific) 121 20
3 Foreign exchange risk 4,363 3,748
4 Commodity risk 507 479
Options 93 69
5 Simplified approach – –
6 Delta-plus method 18 21
7 Scenario approach 76 48
8 Securitisation (specific risk)1 1,316 694
9 Total 17,156 13,810

1 Securitisation (specific risk) is included in the interest rate risk RWA number.

4.1 Market risk continued Table 79: IMA values for trading portfolios (UK MR3)

2025
\$million		 2024
\$million
VaR (10 day 99%)1
Maximum value 135 129
Average value 86 75
Minimum value 53 37
Period end2 60 86
Stressed VaR (10 day 99%)1
Maximum value 358 231
Average value 207 153
Minimum value 106 98
Period end2 218 166
Incremental Risk Charge (99.99%)1
Maximum value – –
Average value – –
Minimum value – –
Period end2 – –
Comprehensive Risk capital charge (99.9%)1
Maximum value – –
Average value – –
Minimum value – –
Period end2 – –

1 Represents only the Group's portfolio covered by the IMA and calculated at the 99 per cent confidence level. Details of the Group's management VaR covering all non-structured market risk exposures, across the trading and non-trading books, calculated at the 97.5 per cent confidence level can be found in the Group's Year End Report 2025 on pages 277 to 278.

2 Actual one day VaR as at period end date.

Table 80: Market risk under the internal Model Approach (IMA) (UK MR2-A)

2025 2024
RWAs
\$million		 Own funds
requirements
\$million		 RWAs
\$million		 Own funds
requirements
\$million
1 VaR (higher of values a and b) 2,572 206 3,984 319
(a) Previous day's VaR 753 60 1,072 86
(b) Average of the daily VaR 2,572 206 3,984 319
2 SVaR (higher of values a and b) 6,399 512 5,529 442
(a) Latest SVaR 2,723 218 2,073 166
(b) Average of the SVaR 6,399 512 5,529 442
3 IRC (higher of values a and b) – – – –
(a) Most recent IRC measure – – – –
(b) 12 weeks average IRC measure – – – –
4 Comprehensive risk measure (higher of values a, b and c) – – – –
(a) Most recent risk measure of comprehensive risk measure – – – –
(b) 12 weeks average of comprehensive risk measure – – – –
(c) Comprehensive risk measure Floor – – – –
5 Other1 4,536 363 4,960 397
6 Total2 13,507 1,081 14,474 1,158

1 Other IMA capital add-ons for market risks not fully captured in either VaR or SVaR. More details on Risks not in VaR can be found in the Group's Year End Report 2025 on page 278.

2 Represents only the Group's portfolio covered by the IMA and calculated at the 99 per cent confidence level. Details of the Group's management VaR covering all non-structured market risk exposures, across the trading and non-trading books, calculated at the 97.5 per cent confidence level can be found in the Group's Year End Report 2025 on pages 277 to 278.

Backtesting

In 2025, there were no regulatory backtesting negative exceptions at Group level.

An enhancement to the VaR model implemented was from January 2025 to increase the model's responsiveness to abrupt upturns in market volatility.

4.1 Market risk continued

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 ignoring any intra-day trading activity.

Table 81: 2025 Backtesting chart for Internal Model Approach regulatory trading book at Group level with hypothetical profit and loss (P&L) versus VaR (99 per cent, one day) (MR4)

Table 82: 2025 Backtesting chart for Internal Model Approach regulatory trading book at Group level with actual profit and loss (P&L) versus VaR (99 per cent, one day) (MR4)

4.2 Counterparty credit risk

Counterparty credit risk (CCR) is the risk that a counterparty in a foreign exchange, interest rate, commodity, equity or credit derivative or repo contract defaults prior to the maturity date of the contract, and that the Group at the time has a claim on the counterparty. CCR arises predominantly in the trading book, but also arises in the non-trading book when hedging with external counterparties is required.

CCR is managed within the overall credit risk appetite for corporate and financial institutions. CCR limits are set for individual counterparties, including central clearing counterparties, and for specific portfolios. Individual limits are calibrated to the credit grade and business model of the counterparties and are set on Potential Future Exposure (PFE). Portfolio limits are set to contain concentration risk across multiple dimensions and are set on PFE or other relevant CCR measures.

The Group reduces its credit exposures to counterparties by entering into contractual netting agreements which result in a single amount owed by or to the counterparty. The amount is calculated by netting the Mark-To-Market (MTM) owed by the counterparty to the Group and the MTM owed by the Group to the counterparty on the transactions covered by the netting agreement. In line with the International Accounting Standard (IAS) 32 principles, the Group's balance sheet will present assets and liabilities on a net basis provided there is a legally enforceable right to set off assets and liabilities, and the Group intends to settle on a net basis or realise the asset and liability simultaneously.

Wrong-way risk

Wrong-way risk occurs when an exposure increase is coupled with a decrease in the credit quality of the obligor. Specifically, as the MTM on a derivative or repo contract increases in favour of the Group, the driver of this MTM change also reduces the ability of the counterparty to meet its payment, margin call or collateral posting requirements. Wrong-way risk mostly arises from FX transactions and financing transactions. The Group employs various policies and procedures to ensure that wrong-way risk exposures are recognised upfront, monitored, and where required, contained by limits on country, tenor, collateral type and counterparty.

Stress testing

Stress testing is an integral part of CCR management, complementing PFE or other portfolio limits. Single and multi-factor scenarios are regularly applied to the CCR portfolio to identify and quantify exposures that could become a concern for the Group. The stressed exposures are monitored monthly at regional and global counterparty credit risk exposure forums. The relevance and severity of the stress scenarios are periodically reviewed with cross functional stakeholders.

Exposure value calculation

Exposure calculation used for risk management is based on a PFE measure (at 75% confidence interval). The PFE is mostly calculated from simulation models, and from PFE add-ons for the non-simulated products.

Derivatives exposures for capital calculation purposes are calculated using the Standard Approach Method (SA-CCR). Individual transactions are measured using the sum of current replacement cost and potential future credit exposure, and the benefit of netting agreements is applied as per the SA-CCR rules. This approach is used for all derivative products not covered by our Internal Models Method (IMM) permission. Under the IMM approach, EAD is calculated by multiplying the effective expected positive exposure by a factor stipulated by the regulator called alpha. The Group has been granted permission by the regulator to use the IMM approach for "vanilla" Interest Rate and Foreign Exchange over-the-counter derivatives. The IMM model is subject to model validation including regular model performance monitoring.

Exposure for repurchase transactions and securities lending or borrowing transactions for capital calculation purposes is calculated using the Financial Collateral Comprehensive Method. Supervisory volatility adjustments are applied to both collateral and exposure legs and the benefit of master netting agreements is taken into consideration.

The Group has credit policies and procedures setting out the criteria for collateral to be recognised as a credit risk mitigant, including requirements concerning legal certainty, priority, concentration, correlation, liquidity and valuation parameters such as frequency of review and independence. The Group seeks to negotiate Credit Support Annexes (CSA) with counterparties when collateral is deemed a necessary or desirable mitigant to the exposure. The credit terms of a CSA are specific to each legal document and determined by the credit risk approval unit responsible for the counterparty. The nature of the collateral is specified in the legal document and is typically cash or highly liquid securities.

The MTM of all trades captured under CSAs is calculated daily. Additional collateral will be called from the counterparty if total uncollateralised MTM exposure exceeds the threshold and minimum transfer amount specified in the CSA. Additional collateral may be required from the counterparty to provide an extra buffer to the daily variation margin process.

The Group also has policies and procedures in place setting out the criteria for guarantees to be recognised as a credit risk mitigant. Where guarantees meet regulatory criteria, the Group treats the exposure as guarantor risk from counterparty credit risk capital standpoint.

4.2 Counterparty credit risk continued

Credit valuation adjustments

CVA measures potential MTM loss associated with the deterioration in the creditworthiness of the counterparty. The Group applies standardised approach to calculate CVA capital charge on over-the-counter derivative contracts. Details on CVA are provided in note 13 of the 2025 Annual Report and Accounts on page 363.

Table 83 shows the credit exposure on derivative transactions after taking into account the benefits from legally enforceable netting agreements and collateral held, including transactions cleared through recognised trading exchanges.

Table 84 specifies the methods used by the Group to calculate counterparty credit risk regulatory requirements, followed by Table 85 which demonstrates the risk-weighted exposure amounts to central counterparties by derivative types.

Table 86 indicates the notional amounts of credit derivative transactions segregated between protection bought and sold within each product type.

Table 87 describes the exposure value subject to credit valuation adjustment charge and related RWA.

Table 83: Composition of collateral for CCR exposures (UK CCR5)

2025
Collateral used in derivatives transactions Collateral used in securities financing
transactions (SFTs)
Fair value of collateral received Fair value of collateral posted Fair value of Fair value of
Segregated
\$million		 Unsegregated
\$million		 Segregated
\$million		 Unsegregated
\$million		 collateral received
\$million		 collateral posted
\$million
Collateral type
1 Cash – 12,281 2,320 14,196 669 –
2 Debt 522 8,906 8,897 5,976 146,451 161,572
3 Equity – – – – 11,902 488
4 Other – – – – 41,258 24
5 Total 522 21,187 11,216 20,172 200,281 162,084
2024
Collateral used in derivatives transactions Collateral used in securities financing
transactions (SFTs)
Fair value of collateral received Fair value of collateral posted Fair value of Fair value of
Segregated
\$million		 Unsegregated
\$million		 Segregated
\$million		 Unsegregated
\$million		 collateral received
\$million		 collateral posted
\$million
Collateral type
1 Cash1 – 11,307 1,141 14,400 549
2 Debt 430 4,665 4,044 1,734 122,674 116,667
3 Equity – – – – 14,577 985
4 Other – – – – 21,332 29
5 Total 430 15,972 5,185 16,133 159,132 117,681

1 2024 has been represented to show fair value of collateral received or posted (excluding initial margin and variation margin) for SFTs to only include security legs.

4.2 Counterparty credit risk continued Table 84: Analysis of CCR exposure by approach (UK CCR1)

2025
Replacement
cost (RC)
\$million		 Potential
future
exposure
(PFE)
\$million		 EEPE
\$million		 Alpha used
for
computing
regulatory
exposure
value		 Exposure
value
pre-CRM
\$million		 Exposure
value
post-CRM
\$million		 Exposure
value
\$million		 RWEA
\$million
UK1 Original Exposure Method (for
derivatives)		 – – 1.4 – – – –
UK2 Simplified SA-CCR (for derivatives) – – 1.4 – – – –
1 SA-CCR (for derivatives) 1,219 4,432 1.4 12,426 7,912 7,910 4,197
2 IMM (for derivatives and SFTs) 18,561 1.4 33,276 25,986 25,978 10,667
2a Of which securities financing
transactions netting sets		 – – – – –
2b Of which derivatives and long
settlement transactions netting
sets		 18,561 33,276 25,986 25,978 10,667
2c Of which from contractual
cross-product netting sets		 – – – – –
3 Financial collateral simple method
(for SFTs)		 – – – –
4 Financial collateral comprehensive
method (for SFTs)		 260,602 206,783 206,783 3,806
5 VaR for SFTs – – – –
6 Total 306,304 240,681 240,671 18,670
2024
Replacement
cost (RC)
\$million		 Potential
future
exposure
(PFE)
\$million		 EEPE
\$million		 Alpha used
for
computing
regulatory
exposure
value		 Exposure
value
pre-CRM
\$million		 Exposure
value
post-CRM
\$million		 Exposure
value
\$million		 RWEA
\$million
UK1 Original Exposure Method (for
derivatives)		 – – 1.4 – – – –
UK2 Simplified SA-CCR (for derivatives) – – 1.4 – – – –
1 SA-CCR (for derivatives) 2,014 3,532 1.4 9,987 7,453 7,452 3,583
2 IMM (for derivatives and SFTs) 18,269 1.6 42,806 29,227 29,222 11,322
2a Of which securities financing
transactions netting sets		 – – – – –
2b Of which derivatives and long
settlement transactions netting
sets		 18,269 42,806 29,227 29,222 11,322
2c Of which from contractual
cross-product netting sets		 – – – – –
3 Financial collateral simple method
(for SFTs)		 – – – –
4 Financial collateral comprehensive
method (for SFTs)		 210,101 171,607 171,607 3,467
5 VaR for SFTs – – – –
6 Total 262,893 208,287 208,281 18,372

4.2 Counterparty credit risk continued Table 85: Exposures to CCPs (UK CCR8)

2025 2024
Exposure value
\$million		 RWA
\$million		 Exposure value
\$million		 RWA
\$million
1 Exposures to QCCPs (total) 1,018 950
2 Trade exposure 10,201 865 6,728 831
3 Of which OTC derivatives 7,169 728 4,042 703
4 Of which exchange-traded derivatives 1,739 112 1,576 106
5 Of which SFTs 1,293 26 1,111 22
6 Of which collateral posted – – – –
7 Segregated initial margin – –
8 Non-segregated initial margin – – – –
9 Prefunded default fund contributions 798 153 638 119
10 Unfunded default fund contributions – – – –
11 Exposures to non-QCCPs (total) 305 100
12 Trade exposure 307 295 93 91
13 Of which OTC derivatives 234 224 54 54
14 Of which exchange-traded derivatives 73 71 39 37
15 Of which SFTs – – – –
16 Of which collateral posted – – – –
17 Segregated initial margin – –
18 Non-segregated initial margin – – – –
19 Prefunded default fund contributions 1 9 1 9
20 Unfunded default fund contributions – – – –

Table 86: Credit derivatives exposures (UK CCR6)

2025
2024
Protection bought
\$million		 Protection sold
\$million		 Protection bought
\$million		 Protection sold
\$million
Notionals
1 Single-name credit default swaps 14,893 12,191 40,847 36,116
2 Index credit default swaps 15,936 11,276 63,925 59,833
3 Total return swaps 45,432 1,365 41,031 1,669
4 Credit options – – – –
5 Other Credit derivatives1 – – – –
Total notionals 76,261 24,832 145,803 97,618
Fair values
6 Positive fair value (asset) 679 369 666 1,264
7 Negative fair value (liability) (2,506) (260) (2,625) (225)

1 2024 has been represented to exclude long settlement transactions reported in other credit derivatives.

Table 87: Transactions subject to own funds requirements for CVA risk (UK CCR2)

2025 2024
Exposure Value RWA Exposure Value RWA
\$million \$million \$million \$million
1 Total transactions subject to the Advanced method – – – –
2 (i) VaR component (including the 3× multiplier) – –
3 (ii) stressed VaR component (including the 3×
multiplier)		 – –
4 Transactions subject to the Standardised method 22,327 2,413 23,756 2,706
UK4 Transactions subject to the Alternative approach (Based
on the Original Exposure Method)		 – – – –
5 Total transactions subject to own funds requirements for
CVA risk		 22,327 2,413 23,756 2,706

4.2 Counterparty credit risk continued

Table 88 depicts EAD after the effect of collateral associated with each risk weight prescribed in Part Three, Title II, Chapter 2 of the CRR for counterparty credit risk.

Table 88: Standardised approach – CCR exposures by regulatory exposure class and risk weights (UK CCR3)

2025
Risk Weight
0% 2% 4% 10% 20% 35% 50% 70% 75% 100% 150% Others Total
Standardised Exposure Class
1 Central governments or central
banks		 498 – – – 5 – – – – – – – 503
4 Multilateral development banks 232 – – – 31 – 7 – – 1 – – 271
6 Institutions – 8,933 8 – 4 – – – – – – – 8,945
7 Corporates – – – – 63 – 6 – – 4,073 – – 4,142
8 Retail – – – – – – – – 1 – – – 1
10a Secured on real estate property – – – – – 18 – – – – – – 18
10b Exposures in default – – – – – – – – – – – – –
10c Items belonging to regulatory high
risk categories		 – – – – – – – – – – – – –
10d Other items 127 – – – 3 – – – – – – – 130
11 Total Standardised 857 8,933 8 – 106 18 13 – 1 4,074 – – 14,010
2024
Risk Weight
0% 2% 4% 10% 20% 35% 50% 70% 75% 100% 150% Others Total
Standardised Exposure Class
1 Central governments or central
banks		 295 – – – 12 – – – – – – – 307
4 Multilateral development banks 361 – – – 30 – 1 – – – – – 392
6 Institutions – 5,562 13 – 2 – – – – – – – 5,577
7 Corporates – – – – 76 – 4 – – 2,484 – – 2,564
8 Retail – – – – – – – – 1 – – – 1
10a Secured on real estate property – – – – – 12 – – – – – – 12
10b Exposures in default – – – – – – – – – – – – –
10c Items belonging to regulatory high
risk categories		 – – – – – – – – – – – – –
10d Other items – – – – 4 – – – – – – – 4
11 Total Standardised 656 5,562 13 – 124 12 5 – 1 2,484 – – 8,857

Exposures increased by \$5.0 billion mainly driven by a \$3.4 billion increase in exposures to institutions and a \$1.6 billion increase in corporates.

The following tables provide further detail on the exposure classes subject to counterparty credit risk, in particular for central governments or central banks, institutions, corporates. These have been split by internal credit grade which relate to the PD ranges presented.

  • Central governments or central banks EAD increased by \$1.0 billion
  • Institutions EAD increased by \$33.1 billion
  • Corporates EAD and RWA decreased by \$3.3 billion and \$1.2 billion respectively

4.2 Counterparty credit risk continued Table 89: IRB – CCR exposures by exposure class

2025
EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
IRB exposure class
Central governments or
central banks		 15,742 0.67 54 12 0.28 850 5
Institutions 118,236 0.27 1,045 7 0.44 4,122 3
Corporates 101,906 0.19 7,419 13 0.43 9,995 10
Of which specialised
lending		 1,231 0.60 279 50 2.10 589 48
Of which SME 19 1.94 25 85 2.12 30 159
Total IRB 235,884 0.27 8,518 10 0.42 14,967 6
2024
EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
IRB exposure class
Central governments or
central banks		 14,715 0.51 48 9 0.30 637 4
Institutions 85,164 0.21 1,025 9 0.51 4,223 5
Corporates 105,227 0.25 7,842 14 0.46 11,179 11
Of which specialised
lending		 996 0.60 338 49 1.89 461 46
Of which SME 18 0.36 25 59 1.04 5 28
Total IRB 205,106 0.25 8,915 12 0.47 16,039 8

1 Weighted averages are based on EAD.

2 Number of obligors is based on number of counterparties.

Table 90: IRB approach – CCR exposures by exposure class and PD scale for central governments or central banks (UK CCR4)

2025
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 14,411 0.06 41 9 0.16 261 2
0.15 to < 0.25 28 0.22 2 45 1.00 9 34
0.25 to < 0.50 11 0.39 1 – 1.00 5 48
0.50 to < 0.75 3 0.51 1 45 1.00 2 56
0.75 to < 2.50 135 1.18 2 45 1.09 113 84
2.50 to < 10.00 824 3.51 5 45 1.88 346 42
10.00 to < 100.00 305 13.77 1 36 1.08 12 4
100.00 (default) 25 100.00 1 45 1.48 101 398
Total 15,742 0.67 54 12 0.28 850 5
2024
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 13,080 0.02 36 8 0.21 191 1
0.15 to < 0.25 25 0.22 1 45 1.78 10 42
0.25 to < 0.50 – 0.22 – – – – 42
0.50 to < 0.75 1 0.51 2 45 1.00 1 56
0.75 to < 2.50 42 1.15 2 45 2.61 42 101
2.50 to < 10.00 1,532 4.25 5 16 0.99 312 20
10.00 to < 100.00 36 18.00 2 45 0.02 81 224
100.00 (default) – 18.00 – 45 0.02 – 20
Total 14,715 0.51 48 9 0.30 637 4

1 Weighted averages are based on EAD.

4.2 Counterparty credit risk continued

Table 91: IRB approach – CCR exposures by exposure class and PD scale for institutions (UK CCR4)

2025
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 106,683 0.05 646 7 0.44 2,829 3
0.15 to < 0.25 4,912 0.22 99 5 0.41 270 6
0.25 to < 0.50 774 0.39 48 6 0.36 70 9
0.50 to < 0.75 1,889 0.53 72 6 0.41 199 11
0.75 to < 2.50 3,644 1.30 113 8 0.36 645 18
2.50 to < 10.00 136 3.44 46 8 0.35 36 26
10.00 to < 100.00 9 13.88 15 45 1.02 22 244
100.00 (default) 189 100.00 6 2 0.04 50 27
Total 118,236 0.27 1,045 7 0.44 4,122 3
2024
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 71,543 0.05 645 9 0.52 2,714 4
0.15 to < 0.25 6,173 0.22 93 7 0.64 403 7
0.25 to < 0.50 1,262 0.39 48 3 0.27 57 4
0.50 to < 0.75 2,431 0.55 84 6 0.24 232 10
0.75 to < 2.50 3,523 1.18 105 8 0.39 488 14
2.50 to < 10.00 90 5.05 28 22 0.80 67 74
10.00 to < 100.00 97 18.00 11 45 0.03 246 254
100.00 (default) 45 100.00 11 3 0.18 16 37
Total 85,164 0.21 1,025 9 0.51 4,223 5

1 Weighted averages are based on EAD.

2 Number of obligors is based on number of counterparties within each PD grade.

Table 92: IRB approach – CCR exposures by exposure class and PD scale for corporates (UK CCR4)

2025
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 73,291 0.07 4,582 11 0.40 3,684 5
0.15 to < 0.25 14,541 0.22 1,163 13 0.45 1,760 12
0.25 to < 0.50 3,371 0.39 501 29 0.89 1,210 36
0.50 to < 0.75 6,374 0.54 530 15 0.41 1,443 23
0.75 to < 2.50 4,159 1.19 442 20 0.45 1,568 38
2.50 to < 10.00 114 3.92 125 61 1.95 201 176
10.00 to < 100.00 50 14.71 59 43 1.32 117 234
100.00 (default) 6 100.00 17 36 2.39 12 200
Total 101,906 0.19 7,419 13 0.43 9,995 10
2024
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 80,313 0.07 4,445 12 0.42 4,251 5
0.15 to < 0.25 9,293 0.22 1,157 23 0.76 2,001 22
0.25 to < 0.50 3,506 0.39 499 22 0.68 934 27
0.50 to < 0.75 7,273 0.54 552 21 0.48 2,037 28
0.75 to < 2.50 4,125 1.26 465 19 0.40 1,463 35
2.50 to < 10.00 349 4.36 184 15 0.67 155 44
10.00 to < 100.00 365 16.48 425 19 0.51 325 89
100.00 (default) 3 100.00 115 35 2.16 13 433
Total 105,227 0.25 7,842 14 0.46 11,179 11

1 Weighted averages are based on EAD.

4.2 Counterparty credit risk continued

Table 93: IRB approach – CCR exposures by exposure class and PD scale for corporates – specialised lending (UK CCR4)

2025
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 522 0.12 53 58 1.34 151 29
0.15 to < 0.25 188 0.22 67 37 3.61 81 43
0.25 to < 0.50 263 0.39 34 54 1.80 160 61
0.50 to < 0.75 112 0.54 40 40 3.30 70 63
0.75 to < 2.50 125 1.18 58 44 2.36 105 85
2.50 to < 10.00 16 3.41 18 30 3.24 14 90
10.00 to < 100.00 3 20.91 4 17 4.18 3 90
100.00 (default) 2 100.00 5 19 4.35 4 180
Total 1,231 0.60 279 50 2.10 589 48
2024
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 386 0.10 79 52 1.61 92 24
0.15 to < 0.25 320 0.22 52 46 2.30 126 39
0.25 to < 0.50 81 0.38 43 51 1.86 48 59
0.50 to < 0.75 70 0.49 65 48 1.80 48 68
0.75 to < 2.50 109 1.05 64 48 1.58 95 87
2.50 to < 10.00 13 3.14 28 29 4.16 13 100
10.00 to < 100.00 15 10.54 4 59 1.00 38 248
100.00 (default) 1 100.00 3 28 4.34 2 150
Total 996 0.60 338 49 1.89 461 46

1 Weighted averages are based on EAD.

2 Number of obligors is based on number of counterparties within each PD grade.

Table 94: IRB approach – CCR exposures by exposure class and PD scale for corporates – SME (UK CCR4)

2025
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 1 0.10 5 49 1.00 – 13
0.15 to < 0.25 1 0.25 2 87 1.00 – 53
0.25 to < 0.50 3 0.39 4 66 1.00 2 51
0.50 to < 0.75 – 0.67 2 66 1.00 – 69
0.75 to < 2.50 2 1.15 5 62 1.00 1 67
2.50 to < 10.00 12 2.83 7 97 2.84 26 227
10.00 to < 100.00 – – – – – – –
100.00 (default) – – – – – – –
Total 1,231 0.60 279 50 2.10 589 48
2024
PD range % EAD post CRM
and post CCF
\$million		 Average
PD1
%		 Number of
obligors2		 Average
LGD1
%		 Average
maturity1
years		 RWA
\$million		 RWA
density1
%
0.00 to < 0.15 12 0.05 1 54 1.00 1 10
0.15 to < 0.25 2 0.23 5 76 1.37 1 48
0.25 to < 0.50 – 0.44 1 87 1.00 – 63
0.50 to < 0.75 3 0.67 3 61 1.00 2 54
0.75 to < 2.50 1 1.53 3 71 1.00 1 92
2.50 to < 10.00 – 3.52 10 82 1.00 1 145
10.00 to < 100.00 – 18.00 2 70 1.00 – 270
100.00 (default) – – – – – – –
Total 18 0.36 25 59 1.04 5 28

1 Weighted averages are based on EAD.

5. Operational Risk

The Group applies the Standardised Approach for measuring the capital requirements for operational risk. The table below reflects the risk-weighted assets and capital requirements resultant from operational risk.

Table 95: Operational risk own funds requirements and risk-weighted exposure amounts (UK OR1)

2025
Relevant indicator Own funds Risk weighted
Year-3 Year-2 Last year requirements exposure amount
Banking activities \$million \$million \$million \$million \$million
1 Banking activities subject to basic indicator
approach (BIA)		 – – – – –
2 Banking activities subject to standardised (TSA) /
alternative standardised (ASA) approaches		 17,779 19,584 20,898 2,818 35,223
3 Subject to TSA: 17,779 19,584 20,898
4 Subject to ASA: – – –
5 Banking activities subject to advanced
measurement approaches AMA		 – – – – –
2024
Relevant indicator Own funds Risk weighted
Year-3 Year-2 Last year requirements exposure amount
Banking activities \$million \$million \$million \$million \$million
1 Banking activities subject to basic indicator
approach (BIA)		 – – – – –
Banking activities subject to standardised (TSA) /
2 alternative standardised (ASA) approaches 14,337 16,015 17,850 2,358 29,479
3 Subject to TSA: 14,337 16,015 17,850
4 Subject to ASA: – – –
5 Banking activities subject to advanced
measurement approaches AMA		 – – – – –

6. Interest rate risk in the banking book

The Group defines Interest Rate Risk in the Banking Book ('IRRBB') as the potential for loss of future earnings or economic value following adverse movements in interest rates, which arises from a mismatch in the re-pricing profile of assets, liabilities, and off-balance sheet items in the banking book.

Risk Control and Governance

Treasury is responsible for monitoring IRRBB through the Treasury Risk Type Framework, policies and Risk Appetite, subject to independent oversight and challenge from Risk and Internal Audit.

The Board delegates the management of IRRBB to the Group Asset & Liability Committee (GALCO), which provides oversight of Group-level IRRBB and works in conjunction with Country ALCOs to monitor IRRBB as per the Risk Type Framework. IRRBB is managed at a country level by the Country ALCO, chaired by the Country CFO.

IRRBB models and methodologies are defined for the Group by the Treasury function, independently validated and approved by the Risk function. Country modelling assumptions are derived locally using the Group's methodologies and are reviewed by Country ALCO.

The Group uses Funds Transfer Pricing (FTP) to transfer re-pricing risk from the business to Treasury, including that arising from structural positions such as non-maturity deposit balances. For non-maturity deposits (NMDs), the assumed duration is dependent on the portion that can be considered stable and the degree to which these balances are considered price sensitive. Certain structural balances have been approved by GALCO and Country ALCOs to be risk managed directly under the Group's structural hedging programme. Other re-pricing risks transferred to Treasury are managed on an integrated basis with a securities portfolio maintained for liquidity and investment management purposes. Basis risk where material (whether transferred to and managed by Treasury or remaining in the business) is reported and overseen at local ALCOs.

Re-pricing risk arising within Treasury is managed using a combination of on-balance sheet short and long tenor securities and derivative hedges. Derivative hedges are subject to Fair Value and Cash Flow Hedge accounting treatment where available. These interest rate risk positions and limits are independently monitored by the Risk function.

Key Risk Measures

The Group uses two key metrics for measuring IRRBB: Net Interest Income ('NII') Sensitivity, an income measure which quantifies the potential change in projected net interest income over a one-year horizon from defined movements in interest rates; and Economic Value of Equity ('EVE'), a value measure which estimates the potential change in the present value of the Group's Banking Book assets and liabilities from defined movements in interest rates. These measures differ in their coverage of the drivers of interest rate risk and the time horizon for these to materialise but used together they can provide a complementary and rounded view of the Group's risk profile. Both NII Sensitivity and EVE are monitored monthly against defined Risk Appetite limits, which are set at the Group level and, where appropriate, at a country level in compliance with local regulatory requirements.

NII Sensitivity and EVE are indicative stress tests calculated under various interest rate scenarios, including parallel and nonparallel shifts and a range of internally designed scenarios that assess vulnerabilities in the Group's business model and key behavioural assumptions under interest rate shocks and stresses. These stress tests are supplemented by internal NII forecasts which are used for financial planning purposes.

Stress tests are performed monthly to identify structural risks to Net Interest Income or the Economic Value of the Banking Book under adverse but plausible interest rate scenarios. Additionally, stress testing of IRRBB is covered as part of ICAAP and BoE concurrent stress testing exercises (more information on stress testing can be found on page 24). Stress testing of price risk on Fair Value instruments in the Banking Book is conducted by Traded Risk Management under the Traded Risk Framework.

Prescribed Regulatory Interest Rate Shock and Stress Scenarios

The following table shows the Group's NII sensitivity and EVE regulatory metrics under each of the interest rate shock scenarios prescribed by the PRA (Rule 9.4A of the PRA Rulebook: CRR Firms: Interest Rate Risk Arising from Non-Trading Activities Instrument 2020. The sensitivities are indicative and subject to standardised shocks and parametric assumptions that may differ to those used in the Group's own internal models; please see next section for more information. The sensitivities should not be considered an income or profit forecast. Furthermore, the regulatory EVE results should not be considered a proxy for expected income or capital impacts on a going concern basis.

Key modelling and parametric assumptions

Net Interest Income Sensitivity

For regulatory NII sensitivities, currency specific shocks are applied as follows:

• A parallel interest rate shock (up and down) to the current market-implied path of rates, across all yield curves, including +/- 200 bps immediate shock for USD and HKD; +/- 150 bps for SGD; +/- 250 bps for CNY and GBP; and +/- 300 bps for KRW. The assessment assumes that the size and mix of the balance sheet remain constant and that there are no specific management actions in response to the change in rates. No assumptions are made in relation to the impact on credit spreads in a changing rate environment. Significant modelling and behavioural assumptions are made regarding scenario simplification, market competition, pass-through rates, asset and liability re-pricing tenors, and price flooring.

Economic Value of Equity Sensitivity

The regulatory EVE sensitivities have been calculated under six standardised interest rate shock scenarios for measuring EVE under the standard outlier test, defined by the PRA.

For EVE, commercial margins and other spread components have been included in the modelled cashflows. The sensitivity represents a hypothetical impact to capital assuming a complete balance sheet run-off, assuming no new business. Balances are adjusted for assumed behavioural profiles, primarily non-maturity deposits, which reflect quantitative and qualitative assessments of the expected stability, rate sensitivity and run off of client balances under varying interest rate conditions.

In line with regulatory guidelines:

  • all equity instruments that have no coupon or call dates have been excluded;
  • market interest rate floors start at -1.0% for the overnight tenor on the yield curve and increase by 5bps per year to at the 20 year tenor point on the yield curve; and
  • the aggregate EVE sensitivity for each interest rate shock scenario is calculated by adding together the negative and positive changes to EVE occurring in each currency. Positive values are weighted by 50%, but the full impact of negative values is included.

As at 31 December 2025, the average repricing maturity assigned to Non-Maturity Deposits was 6 months and the longest repricing maturity was 60 months.

Table 96: Quantitative information on IRRBB (UK IRRBB1)

Change in EVE Change in NII Tier 1 capital
Banking activities 2025 2024 2025 2024 2025 2024
010 Parallel shock up (2,479) (2,385) 1,135 977
020 Parallel shock down 1,267 1,174 (1,664) (1,449)
030 Steepener shock (352) (426)
040 Flattener shock (314) (234)
050 Short rates shock up (1,174) (1,044)
060 Short rates shock down 511 451
070 Maximum (2,479) (2,385) (1,664) (1,449)
080 Tier 1 capital 43,949 41,672

As at 31 December 2025, the maximum EVE decline was \$2,479 million under the parallel shock up. This does not represent the expected impact to capital. EVE sensitivity is driven by duration mismatches in the balance sheet. The magnitude of the result is largely due to the exclusion of equity, in line with regulatory guidelines, versus the inclusion of a structural hedge that is designed to stabilise the net interest income arising from the deployment of equity.

In addition, EVE sensitivity shows the theoretical reduction in the value of the structural hedge when rates rise but does not capture the benefit to future income that would result from rising interest rates as demonstrated by the NII Sensitivity.

Duration mismatches for the remainder of the balance sheet are largely immaterial; however, the sensitivity is amplified by large shocks to Emerging Markets currencies, and the impact of weighting positive values at the currency level by 50%. This 50% haircut on positive EVE values is also the main driver of asymmetry between EVE up and down shocks.

The most adverse impact to NII under the regulatory scenarios was a reduction of \$1,664 million under the parallel shock down. While the interest rate shocks used to compute the regulatory NII sensitivity are larger than the Group's NII sensitivities used for risk management, the drivers of the sensitivities and the limitations of these measures are consistent (please see page 285 of the 2025 Annual Report and Accounts for more information).

7. Liquidity risk

Liquidity & Funding risk management

For information on the Group's Liquidity & Funding risk management practices and risk profile we refer to the Principal Risks and Risk Profile sections of the 2025 Annual Report and Accounts on pages 283 and 287 respectively.

Liquidity Coverage Ratio (LCR) disclosure

The Liquidity Coverage Ratio (LCR) is a regulatory stress ratio measuring the proportion of High-Quality Liquid Assets (HQLA) against net outflows over 30 calendar days. An essential component of the Basel III reforms, the LCR was introduced in October 2015 with the goal of promoting the short-term resilience of a firm's liquidity risk profile.

The Group monitors and reports its LCR under UK onshored Commission Delegated Regulation 2015/61 (LCR Delegated Act rules) and is also subject to local prudential LCR requirements across our footprint, where applicable. The Prudential Regulation Authority (PRA), as the Group's competent authority, accelerated LCR implementation by setting an initial industry-wide minimum threshold of 80 per cent on 1 October 2015 before increasing to 90 per cent on 1 January 2017 ahead of full implementation (100 per cent) from 1 January 2018.

The LCR is a Pillar 1 regulatory requirement calculated by applying standardised haircuts, outflow and inflow factors to HQLA, liabilities and assets respectively. Risks not captured, or not fully captured, under the standardised Pillar 1 ratio (e.g. Intra-day risk or other risks specific to each firm) are known as Pillar 2 risks and are captured under a separate Pillar 2 regulatory framework. These Pillar 2 requirements are set in the form of fixed or variable add-ons to LCR Pillar 1 requirements. Therefore, it should be noted that the HQLA reported in the table below is held to meet Pillar 1 and Pillar 2 risks along with internal Board approved risk appetite.

HQLA

HQLA eligible securities, as defined under LCR Delegated Act rules, fall into three categories: Level 1, Level 2A, and Level 2B liquid assets. Level 1 liquid assets, which are of the highest quality and deemed the most liquid (e.g. central bank reserves or securities issued by the U.S. Treasury Department), are subject to no or little discount (or haircuts) to their market value and may be largely used without limit in the liquidity buffer, except for Level 1 covered bonds.

Level 2A and 2B securities are recognised as being relatively stable and reliable sources of liquidity, but not to the same extent as Level 1 assets. LCR rules therefore set a 40 per cent composition cap on the combined amount of Level 2A and Level 2B that firms may hold in their total eligible liquidity buffer. Level 2B liquid assets, which are considered less liquid and more volatile than Level 2A liquid assets, are subject to large and varying haircuts and may not exceed 15 per cent of the total eligible HQLA.

To be recognised as HQLA eligible, securities must also meet various operational and general requirements designed to ensure that such assets have robust liquidity characteristics and can be freely converted into cash within a short timeframe, without significant loss in value.

Outflows

Expected outflows are generally calculated as a percentage outflow of on-balance sheet items (e.g. funding received) and off-balance sheet commitments (e.g. credit and liquidity lines) made by firms. This outflow varies typically by counterparty. For example, the outflow expected on retail deposits is lower than the outflow expected on deposits provided by corporates or financial institutions.

Inflows

Expected inflows are also generally calculated as a percentage inflow on-balance sheet items and include inflows (e.g. from retail or corporate loans) that will be repaid within 30 days. To ensure a minimum level of liquid asset holdings, and to prevent firms from relying solely on anticipated inflows to meet their liquidity coverage ratio, the prescribed amount of inflows that can offset outflows is capped at 75 per cent of total expected outflows.

Calculated pursuant to LCR Delegated Act rules, the following table sets forth simple averages of month-end Group LCR observations over the 12-months preceding each quarter. For a period end Group LCR disclosure, refer to page 281 of the 2025 Annual Report and Accounts.

Table 97: Liquidity Coverage Ratio (LCR) (UK LIQ1)

2025
Total unweighted value
(average)		 Total weighted value
(average)
31.03.25
\$million		 30.06.25
\$million		 30.09.25
\$million		 31.12.25
\$million		 31.03.25
\$million		 30.06.25
\$million		 30.09.25
\$million		 31.12.25
\$million
Number of data points used in the
calculation of averages		 12 12 12 12 12 12 12 12
High-Quality Liquid Assets
1 Total High-Quality Liquid Assets
(HQLA)		 177,586 180,147 182,646 185,262
Cash outflows
2 Retail deposits and deposits from small
business customers, of which:		 188,544 196,413 204,354 211,436 17,541 18,345 19,227 19,671
3 Stable deposits 29,423 33,815 38,809 43,228 1,471 1,691 1,940 2,161
4 Less stable deposits 159,121 162,598 165,545 168,207 16,070 16,654 17,287 17,509
5 Unsecured wholesale funding, of which: 268,878 273,127 276,536 281,690 117,376 118,768 119,322 121,234
6 Operational deposits
(all counterparties) and deposits
in networks of cooperative banks		 109,512 113,024 116,321 119,083 27,361 28,239 29,045 29,718
7 Non-operational deposits
(all counterparties)		 155,354 155,636 155,582 158,131 86,002 86,062 85,645 87,041
8 Unsecured debt 4,012 4,467 4,633 4,476 4,012 4,467 4,633 4,476
9 Secured wholesale funding 6,848 7,339 7,290 7,246
10 Additional requirements 106,994 109,191 110,451 111,343 32,782 33,637 32,668 30,576
11 Outflows related to derivative
exposures and other collateral
requirements		 21,962 21,972 19,872 16,512 16,314 16,661 15,360 12,825
12 Outflows related to loss of funding
on debt products		 49 21 37 28 49 21 37 28
13 Credit and liquidity facilities 84,983 87,198 90,542 94,804 16,418 16,955 17,271 17,723
14 Other contractual funding obligations 12,786 13,060 13,730 15,534 9,209 9,280 9,699 11,260
15 Other contingent funding obligations 256,674 258,204 257,474 254,800 3,546 3,550 3,670 3,873
16 Total cash outflows 187,301 190,919 191,877 193,861
Cash inflows
17 Secured lending (e.g. reverse repos) 74,199 80,197 83,075 89,539 13,130 13,797 14,181 15,143
18 Inflows from fully performing exposures 52,089 51,250 50,851 51,729 36,249 35,716 35,407 36,143
19 Other cash inflows 30,028 31,465 33,173 34,449 18,973 20,287 21,908 22,764
UK-19a (Difference between total weighted
inflows and total weighted outflows
arising from transactions in third
countries where there are transfer
restrictions or which are denominated
in non-convertible currencies) – – – –
UK-19b (Excess inflows from a related
specialised credit institutions)		 – – – –
20 Total cash inflows 156,316 162,912 167,099 175,717 68,352 69,800 71,495 74,049
UK-20a Fully exempt inflows – – – – – – – –
UK-20b Inflows subject to 90% cap – – – – – – – –
UK-20c Inflows subject to 75% cap 149,270 155,246 159,337 167,334 68,352 69,800 71,495 74,049
Total adjusted value
21 Liquidity buffer 177,586 180,147 182,646 185,262
22
23		 Total net cash outflows
Liquidity coverage ratio (%)		 118,948
149%		 121,119
149%		 120,381
152%		 119,812
155%

Table 97: Liquidity Coverage Ratio (LCR) (UK LIQ1) continued

2024
Total unweighted value
(average)		 Total weighted value
(average)
31.03.24
\$million		 30.06.24
\$million		 30.09.24
\$million		 31.12.24
\$million		 31.03.24
\$million		 30.06.24
\$million		 30.09.24
\$million		 31.12.24
\$million
Number of data points used in the calculation of
averages		 12 12 12 12 12 12 12 12
High-Quality Liquid Assets
1 Total High-Quality Liquid Assets (HQLA) 187,777 184,937 180,914 178,676
Cash outflows
2 Retail deposits and deposits from small business
customers, of which:		 160,852 166,820 174,527 182,277 16,641 16,545 16,667 16,984
3 Stable deposits 35,837 32,573 29,406 26,759 1,792 1,629 1,470 1,338
4 Less stable deposits 125,015 134,247 145,121 155,518 14,849 14,916 15,196 15,647
5 Unsecured wholesale funding, of which: 265,422 265,492 267,511 268,125 120,081 119,500 119,167 118,058
6 Operational deposits
(all counterparties) and deposits
in networks of cooperative banks		 110,232 107,508 106,485 106,393 27,540 26,859 26,604 26,582
7 Non-operational deposits
(all counterparties)		 149,431 152,583 156,224 157,426 86,783 87,240 87,761 87,170
8 Unsecured debt 5,758 5,401 4,802 4,306 5,758 5,401 4,802 4,306
9 Secured wholesale funding 5,321 5,529 5,888 6,276
10 Additional requirements 101,849 102,520 103,364 105,088 30,774 30,391 30,995 32,078
11 Outflows related to derivative
exposures and other collateral
requirements		 18,005 18,993 20,116 21,430 15,074 14,554 15,042 15,933
12 Outflows related to loss of funding
on debt products 2 32 32 50 2 32 32 50
13 Credit and liquidity facilities 83,842 83,496 83,217 83,608 15,699 15,805 15,921 16,095
14 Other contractual funding obligations 11,172 11,067 11,986 12,098 8,192 8,457 9,098 8,908
15 Other contingent funding obligations 244,096 247,871 252,574 256,204 2,818 3,138 3,411 3,587
16 Total cash outflows 183,826 183,559 185,227 185,890
Cash inflows
17 Secured lending (e.g. reverse repos) 57,672 57,428 61,322 66,620 8,477 9,029 10,077 11,424
18 Inflows from fully performing exposures 56,103 55,383 54,576 52,650 39,969 39,109 38,220 36,776
19 Other cash inflows 27,989 28,215 29,188 29,751 17,591 17,536 18,175 18,695
UK-19a (Difference between total weighted inflows and
total weighted outflows arising from
transactions in third countries where there are
transfer restrictions or which are denominated in
non-convertible currencies)		 – – – –
UK-19b (Excess inflows from a related specialised credit
institutions)		 – – – –
20 Total cash inflows 141,763 141,025 145,086 149,021 66,037 65,674 66,472 66,896
UK-20a Fully exempt inflows – – – – – – – –
UK-20b Inflows subject to 90% cap – – – – – – – –
UK-20c Inflows subject to 75% cap 135,793 135,805 139,655 142,932 66,037 65,674 66,472 66,896
Total adjusted value
21 Liquidity buffer 187,777 184,937 180,914 178,676
22 Total net cash outflows 117,790 117,885 118,755 118,995
23 Liquidity coverage ratio (%) 160% 157% 153% 150%

The ratios reported in the above table are simple averages of month-end Group LCR ratios over the twelve months preceding each quarter. Therefore, these ratios may not be equal to the implied LCR calculated when using the average component amounts reported under 'Liquidity buffer' and 'Total net cash outflows' in the above table.

Main drivers and changes in LCR

The Group continued to maintain a strong average LCR position over the reporting period with a prudent surplus to both Board approved risk appetite and regulatory requirements. LCR at 155% was higher compared to 2024. Increase is mainly driven by increase in HQLA with Net outflows (outflow minus inflow) remaining broadly stable.

Net Stable Funding Ratio

The Net Stable Funding Ratio (NSFR) is a regulatory ratio measuring Available Stable Funding ("ASF") compared to Required Stable Funding ("RSF") over the time horizon of one year.

Table 98: Net Stable Funding Ratio (UK LIQ2)

2025
Unweighted value by residual maturity
No maturity
\$million		 < 6 months
\$million		 6 months to < 1yr
\$million		 ≥ 1yr
\$million		 Weighted value (aver
age)
\$million
Available stable funding (ASF) Items
1 Capital items and instruments 50,690 525 584 9,215 60,197
2 Own funds 50,690 525 584 9,215 60,197
3 Other capital instruments – – – –
4 Retail deposits 201,300 9,751 1,678 194,416
5 Stable deposits 53,045 2,781 60 53,095
6 Less stable deposits 148,255 6,970 1,618 141,321
7 Wholesale funding: 399,225 37,525 56,655 208,148
8 Operational deposits 118,453 – – 59,227
9 Other wholesale funding 280,772 37,525 56,655 148,921
10 Interdependent liabilities 2,816 52 48 –
11 Other liabilities: 1,147 61,093 1,577 858 1,646
12 NSFR derivative liabilities 1,147
13 All other liabilities and capital instruments not included in
the above categories		 61,093 1,577 858 1,646
14 Total available stable funding (ASF) 464,406
Required stable funding (RSF) Items
15 Total high-quality liquid assets (HQLA) 12,538
UK-15a Assets encumbered for more than 12m in cover pool – – – –
16 Deposits held at other financial institutions for operational
purposes		 2,742 – – 1,371
17 Performing loans and securities: 189,484 61,192 216,751 262,570
18 Performing securities financing transactions with financial
customers collateralised by Level 1 HQLA subject to 0%
haircut		 27,126 1,596 2,165 5,671
19 Performing securities financing transactions with financial
customer collateralised by other assets and loans and
advances to financial institutions		 68,638 29,217 26,712 48,825
20 Performing loans to non-financial corporate clients, loans
to retail and small business customers, and loans to
sovereigns, and PSEs, of which:		 47,760 14,981 85,796 104,299
21 With a risk weight of less than or equal to 35% under
the Basel II Standardised Approach for credit risk		 2,748 1,643 1,525 3,490
22 Performing residential mortgages, of which: 2,136 1,571 61,767 43,818
23 With a risk weight of less than or equal to 35% under
the Basel II Standardised Approach for credit risk		 1,561 949 55,781 38,131
24 Other loans and securities that are not in default and do
not qualify as HQLA, including exchange-traded equities
and trade finance on-balance sheet products		 43,824 13,828 40,310 59,956
25 Interdependent assets – – 2,917 –
26 Other assets: – 59,403 2,571 47,992 51,331
27 Physical traded commodities 18,178 15,451
28 Assets posted as initial margin for derivative
contracts and contributions to default funds of
CCPs 420 9 11,990 10,557
29 NSFR derivative assets 559 – – 559
30 NSFR derivative liabilities before deduction of
variation margin posted		 19,703 – – 985
31 All other assets not included in the above
categories 38,722 2,561 17,825 23,779
32 Off-balance sheet items 174,334 74,530 103,661 7,348
33 Total RSF 335,158
34 Net Stable Funding Ratio (%) 138.6%

Table 98: Net Stable Funding Ratio (UK LIQ2) continued

2024
Unweighted value by residual maturity
No maturity
\$million		 < 6 months
\$million		 6 months to < 1yr
\$million		 ≥ 1yr
\$million		 Weighted value
(average)
\$million
Available stable funding (ASF) Items
1 Capital items and instruments 48,085 1,164 1,802 10,456 59,442
2 Own funds 48,085 1,164 1,802 10,456 59,442
3 Other capital instruments – – – –
4 Retail deposits 166,882 11,230 2,054 163,814
5 Stable deposits 28,827 362 109 27,838
6 Less stable deposits 138,055 10,869 1,945 135,976
7 Wholesale funding: 379,391 38,297 50,552 192,931
8 Operational deposits 102,808 – – 51,404
9 Other wholesale funding 276,583 38,297 50,552 141,527
10 Interdependent liabilities 2,306 84 14 –
11 Other liabilities: 588 60,130 833 1,099 1,471
12 NSFR derivative liabilities 588
13 All other liabilities and capital instruments not included in
the above categories		 60,130 833 1,099 1,471
14 Total available stable funding (ASF) 417,658
Required stable funding (RSF) Items
15 Total high-quality liquid assets (HQLA) 11,340
UK-15a Assets encumbered for more than 12m in cover pool – – – –
16 Deposits held at other financial institutions for operational
purposes		 2,749 – – 1,375
17 Performing loans and securities: 201,490 64,747 193,269 248,900
18 Performing securities financing transactions with financial
customers collateralised by Level 1 HQLA subject to 0%
haircut		 25,487 1,216 2,162 4,832
19 Performing securities financing transactions with financial
customer collateralised by other assets and loans and
advances to financial institutions		 74,512 25,983 21,063 43,318
20 Performing loans to non-financial corporate clients, loans
to retail and small business customers, and loans to
sovereigns, and PSEs, of which: 47,005 14,574 76,932 96,565
21 With a risk weight of less than or equal to 35% under
the Basel II Standardised Approach for credit risk		 938 1,184 1,590 2,492
22 Performing residential mortgages, of which: 3,529 2,184 57,479 41,380
23 With a risk weight of less than or equal to 35% under
the Basel II Standardised Approach for credit risk		 2,580 1,399 52,780 36,519
24 Other loans and securities that are not in default and do
not qualify as HQLA, including exchange-traded equities
and trade finance on-balance sheet products		 50,957 20,790 35,632 62,805
25 Interdependent assets – – 2,404 –
26 Other assets: – 60,298 1,906 38,311 41,052
27 Physical traded commodities 7,247 6,160
28 Assets posted as initial margin for derivative
contracts and contributions to default funds of
CCPs – – 12,784 10,866
29 NSFR derivative assets 693 – – 693
30 NSFR derivative liabilities before deduction of
variation margin posted 17,274 – – 864
31 All other assets not included in the above
categories 42,331 1,906 18,280 22,469
32 Off-balance sheet items1 164,524 72,517 104,556 6,282
33 Total RSF 308,948
34 Net Stable Funding Ratio (%) 135.2%

1 During 2025, uncommitted facilities were included in the NSFR templates. To allow for meaningful year on year comparatives, Pillar 3 templates have been re-stated to account for this change.

HQLA composition

Figures reported in this section are simple averages of the 12 data points over the reporting period Jan 2025 to Dec 2025.

HQLA presented herein excludes excess liquidity held at certain subsidiaries that is not transferable within the Group.

Our liquidity management function in Treasury actively manages the size and composition of our eligible HQLA to ensure it is well diversified and reflects the Group's Board approved risk appetite and supporting risk measures, regulatory and internal stress testing requirements, the currency denomination of outflows, amongst other relevant considerations.

For a regional view of our HQLA liquidity pool, refer to page 281 of the 2025 Annual Report and Accounts.

Table 99: Total eligible high-quality liquid assets (HQLA)

Average unweighted Average weighted
Level 1 reserves 44% 44%
Level 1 liquid securities 53% 53%
Level 2A liquid assets 3% 2%
Level 2B liquid assets 1% –

Concentration of funding and liquidity sources

The Group's funding strategy is largely driven by its policy to maintain adequate liquidity at all times, in all geographic locations and in all currencies, and hence to be in a position to meet all obligations as they fall due.

With a sufficiently flexible funding strategy we are able to reduce liquidity risk by diversifying our liquidity resources. Our high degree of geographic diversification constitutes a material risk offset because of our ability to raise a variety of funding across a number of markets in which we operate.

The Group has established internal measures to closely monitor and highlight any build up in counterparty, industry and tenor concentrations to ensure it can meet liquidity needs under different stress scenarios and different time horizons.

Our funding profile over the reporting period was well diversified across different sources by product, business and tenor. Consistent with the Group's funding strategy, customer assets were largely funded out of customer deposits, which are considered a stable source of funding. Customer deposits are primarily sourced from Current Account Saving Account balances along with time deposits and these are further diversified across different customer segments, currencies, tenors and markets.

For further details on the Group's funding profile, refer to pages 281 to 282 of the 2025 Annual Report and Accounts.

Derivative exposures and potential collateral calls

In the normal course of business, the Group deals in the Over-the-counter (OTC) and exchange traded derivative markets with both collateralised and uncollateralised derivative counterparties. Trades are taken primarily to facilitate client activity or for hedging our own risk exposures; as such, derivatives are not generally held for position-taking.

The LCR Delegated Act requires HQLA to be held against net contractual and contingent outflows relating to derivative transactions. These include:

  • Net Contractual outflows over a 30-day calendar period if subject to either legally enforceable master netting agreements and/or covered by collateral agreements (e.g. CSA), these cash flows can be netted at a counterparty level
  • The impact of an adverse market scenario on the collateral requirements of the Group's derivatives portfolio
  • Incremental collateral required to be posted in the event of a deterioration in the Group's own credit quality (e.g. a threenotch downgrade in the firm's long-term external credit rating)
  • The counterparties' contractual right to substitute higher quality collateral with lower quality collateral
  • The devaluation of existing collateral posted to counterparties
  • Callable/due excess collateral that a firm may be contractually required to return to a counterparty

In addition to regulatory requirements, the Group employs various measures to actively reduce the risk of potential collateral calls on our derivative positions.

On average over the reporting period, weighted 'Outflows related to derivative exposures and other collateral requirements' made up only 6.6 per cent of the Group's total weighted outflows.

Currency mismatch in the LCR

The Group LCR is calculated and reported on a consolidated basis and in its reporting currency, US dollars. Although not required to meet minimum LCR requirements in other currencies, we report other significant currency LCRs to the PRA as part of the monthly LCR submission as well as to senior stakeholders in the form of internal monthly MI.

To minimise currency mismatch risk, the Group seeks to fund assets in the same currency, however, due to our global footprint, cross currency funding is utilised to appropriately manage currency gaps when it makes economic sense to do so.

To the extent mismatches arise, these are managed via the Group's currency convertibility framework. The framework identifies currencies that are expected to have limited convertibility during a stress, and sets thresholds on the amount of currency surplus that can be used to meet outflows in other currencies. HQLA amounts reported in Table 96 above therefore exclude surplus liquidity across the Group considered non-convertible in stress.

The implementation of liquidity metrics (such as ADR) at country level ensures that a large portion of assets is funded out of liabilities raised in the same currency. We also monitor closely, against set limits, the amount of foreign currency that can be swapped to local currency, and vice versa, in addition to currency mismatches by different tenor buckets.

7.1 Encumbered and unencumbered assets

The following disclosures of encumbered and unencumbered assets are based on the requirements in Part Eight of the CRR Article 443.

Standard Chartered's primary funding source is its customer deposit base. Given this structural unsecured funding position we have little requirement to fund ourselves in secured markets, and therefore our overall low level of encumbrance reflects this position. However, we do provide collateralised financing services to clients and these result in off-balance sheet encumbrance. The Group monitors the mix of secured and unsecured funding sources within the Group's funding plan and seeks to efficiently utilise available collateral to raise secured funding and meet other collateral requirements.

Table 100: Encumbered and unencumbered assets (UK AE1)

2025
Carrying
amount of
encumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million		 Fair value of
encumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million		 Carrying
amount of
unencumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million		 Fair value of
unencumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million
010 Assets of the reporting institution 63,244 38,688 846,021 238,458
030 Equity instruments – - - - 8,903 176 8,903 90
040 Debt securities 48,413 38,688 48,413 38,494 204,894 148,208 203,048 144,033
050 Of which: covered bonds 113 113 113 113 3,143 3,143 3,143 3,125
060 Of which: securitisations 3,966 193 3,966 193 20,976 8,110 19,984 8,110
070 Of which: issued by general governments 27,576 24,497 27,575 24,531 95,367 86,662 95,404 86,294
080 Of which: issued by financial corporations 17,671 11,950 17,671 11,910 68,326 30,122 66,720 28,242
090 Of which: issued by non-financial
corporations		 1,043 522 1,043 489 6,243 2,364 5,872 2,352
120 Other assets 14,831 - 632,224 90,074
2024
Carrying
amount of
encumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million		 Fair value of
encumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million		 Carrying
amount of
unencumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million		 Fair value of
unencumbered
assets
\$million		 Of which
notionally
eligible EHQLA
and HQLA
\$million
010 Assets of the reporting institution 46,526 21,089 803,388 223,192
030 Equity instruments – – – – 6,254 155 6,256 10
040 Debt securities 32,881 21,089 32,881 21,089 194,839 140,630 194,656 140,559
050 Of which: covered bonds 337 337 337 337 4,355 4,313 4,355 4,313
060 Of which: securitisations 4,965 116 4,965 116 14,812 3,688 14,811 3,688
070 Of which: issued by general governments 21,903 17,434 21,903 17,321 85,764 77,364 85,675 77,222
080 Of which: issued by financial corporations 8,858 3,031 8,858 3,160 79,458 43,642 79,373 43,642
090 Of which: issued by non-financial
corporations		 978 181 978 181 5,107 2,653 4,952 2,653
120 Other assets 13,644 – 602,295 82,408

7.1 Encumbered and unencumbered assets continued Table 101: Collateral received and own debt securities issued (UK AE2)

2025
Carrying amount
of encumbered
assets
\$million		 Of which
notionally eligible
EHQLA and HQLA
\$million		 Fair value of
encumbered
assets
\$million		 Of which
notionally eligible
EHQLA and HQLA
\$million
130 Collateral received by the reporting institution 57,440 35,035 43,488 14,625
140 Loans on Demand - - - -
150 Equity Instruments - - 9,381 -
160 Debt securities 57,440 35,035 34,106 14,625
170 Of which: covered bonds - - - -
180 Of which: Asset backed securities 433 - 2,024 -
190 Of which: issued by General Governments 28,048 22,044 15,375 8,653
200 Of which: issued by Financial Corporations 18,086 5,193 9,361 3,647
210 Of which: issued by Non Financial Corporations 5,743 2,510 4,549 1,339
220 Loans and Advances other than Loans on demand - - - -
230 Other collateral received - - - -
240 Own debt securities issued other than own covered
bonds or securitisations		 - - - -
241 Own covered bonds and asset-backed securities
issued and not yet pledged		 - -
250 Total assets, collateral received and own debt securities issued 120,684 73,723
2024
Carrying amount
of encumbered
assets
\$million		 Of which
notionally eligible
EHQLA and HQLA
\$million		 Fair value of
encumbered
assets
\$million		 Of which
notionally eligible
EHQLA and HQLA
\$million
130 Collateral received by the reporting institution 73,824 47,736 35,380 17,129
140 Loans on Demand – – – –
150 Equity Instruments – – 9,069 –
160 Debt securities 73,824 47,736 26,311 17,129
170 Of which: covered bonds – – – –
180 Of which: Asset backed securities 896 – 1,395 –
190 Of which: issued by General Governments 35,370 29,558 10,115 7,400
200 Of which: issued by Financial Corporations 20,479 5,573 10,925 4,493
210 Of which: issued by Non Financial Corporations 7,094 3,492 2,828 2,477
220 Loans and Advances other than Loans on demand – – – –
230 Other collateral received – – – –
240 Own debt securities issued other than own covered
bonds or securitisations		 – – – –
241 Own covered bonds and asset-backed securities
issued and not yet pledged		 – –
250 Total assets, collateral received and own debt securities issued 120,350 68,825

7.1 Encumbered and unencumbered assets continued Table 102: Sources of encumbrance (UK AE3)

2025 2024
Matching
liabilities
contingent
liabilities or
securities lent
\$million		 Assets, collateral
received and own
debt securities
issued other than
covered bonds
and ABSs
encumbered
\$million		 Matching
liabilities
contingent
liabilities or
securities lent
\$million		 Assets, collateral
received and own
debt securities
issued other than
covered bonds
and ABSs
encumbered
\$million
010
Carrying amount of selected financial liabilities		 62,242 65,029 61,273 63,845

The Group's median asset encumbrance for 2025 was \$121 billion, which primarily related to cash collateral pledged against derivatives, and other securities.

Encumbered assets represent on-balance sheet assets pledged or subject to any form of arrangement to secure, collateralise or credit enhance any transaction from which it cannot be freely withdrawn. Debt securities are predominantly related to repurchase agreements. Furthermore, the unencumbered assets that cannot be encumbered also remain at low level and include goodwill, property and plant, unsettled trades, non-group acceptance and tax assets. Derivatives and Reverse Repos are not generally deemed available for encumbrance.

The Group provides collateralised security financing services to its clients, which is also used to manage the Group's own short-term cash and collateral needs. For securities accepted as collateral, mandates are credit rating driven with appropriate notional limits per rating, asset and individual bond concentration. The majority of collateral the Group uses in repo/reverse repo and stock lending/stock borrowing transactions is investment grade government issued. Information on over-collateralisation can be found in the Credit risk mitigation section of the 2025 Annual Report and Accounts on page 226.

8. Remuneration

The qualitative Pillar 3 remuneration disclosures for the 2025 performance year are set out on pages 180 to 206 of the Directors' remuneration report in the 2025 Annual Report and Accounts. Information is provided on the key components of our remuneration approach and how we develop our approach. The disclosures follow the requirements set out in Article 450 of chapter 4 of the 'Disclosure (CRR)' part of the PRA Rulebook.

Table 103: Remuneration awarded for the financial year (UK REM1)

2025 2024
MB
Supervisory
function
\$million		 MB
Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million		 MB
Supervisory
function
\$million		 MB
Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million
Fixed remuneration
1 Number of identified staff 10 2 13 666 11 2 16 671
2 Total fixed remuneration 5 5 24 372 4 6 33 365
3 Of which: cash-based 5 4 24 372 4 4 33 365
UK-4a Of which: shares or
equivalent ownership
interests		 - 1 - - – 2 – –
5 Of which: share-linked
instruments or equivalent
non-cash instruments		 - - - - – – – –
UK-5x Of which: other
instruments		 - - - - – – – –
7 Of which: other forms - - - - – – – –
Variable remuneration
9 Number of identified staff 10 2 13 666 11 2 16 671
10 Total variable remuneration - 14 62 438 – 18 46 399
11 Of which: cash-based - 4 19 216 – 2 18 201
12 Of which: deferred - - - 3 – 1 9 104
UK-13a Of which: shares or
equivalent ownership
interests		 - 10 43 222 – 16 28 198
UK-14a Of which: deferred - 10 42 220 – 16 19 106
UK-13b Of which: share-linked
instruments or equivalent
non-cash instruments		 - - - - – – – –
UK-14b Of which: deferred - - - - – – – –
UK-14x Of which: other
instruments		 - - - - – – – –
UK-14y Of which: deferred - - - - – – – –
15 Of which: other forms - - - - – – – –
16 Of which: deferred - - - - – – – –
17 Total remuneration (2 + 10) 5 19 86 810 4 24 79 764

Table 104: Special payments to staff whose professional activities have a material impact on institutions' risk profile (identified staff) (UK REM2)

MB Supervisory
function
\$million		 MB Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million
Guaranteed variable remuneration awards
Guaranteed variable remuneration awards –
Number of identified staff		 – – – 4
Guaranteed variable remuneration awards – Total amount – – – 3
Of which guaranteed variable remuneration awards paid
during the financial year, that are not taken into account
in the bonus cap		 – – – –
Severance payments awarded in previous periods, that have
been paid out during the financial year
Severance payments awarded in previous periods,
that have been paid out during the financial year –
Number of identified staff		 – – – –
Severance payments awarded in previous periods, that have
been paid out during the financial year – Total amount		 – – – –
Severance payments awarded during the financial year
Severance payments awarded during the financial year – –
Severance payments awarded during the financial year – –
–
Of which deferred – – – –
Of which severance payments paid during the financial year, –
Of which highest payment that has been awarded
to a single person		 – – – –
Number of identified staff
Total amount
Of which paid during the financial year
that are not taken into account in the bonus cap		 –
–
–
–		 –
–
–
–		 2025
–
–
–
–
2024
MB Supervisory
function
\$million		 MB Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million
Guaranteed variable remuneration awards
1 Guaranteed variable remuneration awards –
Number of identified staff		 – – – 4
2 Guaranteed variable remuneration awards – Total amount – – – 3
3 Of which guaranteed variable remuneration awards paid
during the financial year, that are not taken into account
in the bonus cap		 – – – –
Severance payments awarded in previous periods, that have
been paid out during the financial year
4 Severance payments awarded in previous periods,
that have been paid out during the financial year –
Number of identified staff		 – – – –
5 Severance payments awarded in previous periods, that have
been paid out during the financial year – Total amount		 – – – –
Severance payments awarded during the financial year
6 Severance payments awarded during the financial year –
Number of identified staff		 – – – –
7 Severance payments awarded during the financial year –
Total amount		 – – – –
8 Of which paid during the financial year – – – –
9 Of which deferred – – – –
10 Of which severance payments paid during the financial year,
that are not taken into account in the bonus cap		 – – – –
11 Of which highest payment that has been awarded
to a single person		 – – – –

Table 105: Deferred remuneration (UK REM3)

2025
Deferred and retained remuneration Total amount
of deferred
remuneration
awarded for
previous
performance
periods
\$million		 Of which due
to vest in the
financial year
\$million		 Of which vesting
in subsequent
financial years
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in the
financial year
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in future
performance
years
\$million		 Total amount
of adjustment
during the
financial year
due to ex post
implicit
adjustments (i.e.
changes of value
of deferred
remuneration
due to the
changes of prices
of instruments)
\$million		 Total amount
of deferred
remuneration
awarded before
the financial year
actually paid out
in the financial
year
\$million		 Total of amount
of deferred
remuneration
awarded for
previous
performance
period that has
vested but is
subject to
retention periods
\$million
1 MB Supervisory function – – – – – – – –
2 Cash-based – – – – – – – –
3 Shares or equivalent
ownership interests		 – – – – – – – –
4 Share-linked instruments or equivalent
non-cash instruments		 – – – – – – – –
5 Other instruments – – – – – – – –
6 Other forms – – – – – – – –
7 MB Management function 100 10 90 (2) – 46 8 8
8 Cash-based – – – – – – – –
9 Shares or equivalent
ownership interests		 100 10 90 (2) – 46 8 8
10 Share-linked instruments or equivalent
non-cash instruments		 – – – – – – – –
11 Other instruments – – – – – – – –
12 Other forms – – – – – – – –
13 Other senior management 227 29 198 (2) – 91 27 20
14 Cash-based 29 4 25 – – – 4 –
15 Shares or equivalent
ownership interests		 198 25 173 (2) – 91 23 20
16 Share-linked instruments or equivalent
non-cash instruments		 – – – – – – – –
17 Other instruments – – – – – – – –
18 Other forms – – – – – – – –
19 Other identified staff 1,075 268 807 – – 362 259 123
20 Cash-based 288 62 226 – – – 59 –
21 Shares or equivalent
ownership interests		 679 179 500 – – 312 173 109
22 Share-linked instruments or equivalent
non-cash instruments		 108 27 81 – – 50 27 14
23 Other instruments – – – – – – – –
24 Other forms – – – – – – – –
25 Total amount 1,402 307 1,095 (4) – 499 294 151

Table 105: Deferred remuneration (UK REM3) continued

2024
Deferred and retained remuneration Total amount
of deferred
remuneration
awarded for
previous
performance
periods
\$million		 Of which due
to vest in the
financial year
\$million		 Of which vesting
in subsequent
financial years
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in the
financial year
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in future
performance
years
\$million		 Total amount
of adjustment
during the
financial year
due to ex post
implicit
adjustments (i.e.
changes of value
of deferred
remuneration
due to the
changes of prices
of instruments)
\$million		 Total amount
of deferred
remuneration
awarded before
the financial year
actually paid out
in the financial
year
\$million		 Total of amount
of deferred
remuneration
awarded for
previous
performance
period that has
vested but is
subject to
retention periods
\$million
1 MB Supervisory function – – – – – – – –
2 Cash-based – – – – – – – –
3 Shares or equivalent
ownership interests		 – – – – – – – –
Share-linked instruments or equivalent
4 non-cash instruments – – – – – – – –
5 Other instruments – – – – – – – –
6 Other forms – – – – – – – –
7 MB Management function 44 7 37 (4) – 15 3 3
8 Cash-based – – – – – – – –
9 Shares or equivalent
ownership interests		 44 7 37 (4) – 15 3 3
10 Share-linked instruments or
equivalent non-cash instruments		 – – – – – – – –
11 Other instruments – – – – – – – –
12 Other forms – – – – – – – –
13 Other senior management 185 43 142 (9) – 50 18 11
14 Cash-based 34 6 28 – – – 4 –
15 Shares or equivalent
ownership interests		 151 37 114 (9) – 50 14 11
Share-linked instruments or
16 equivalent non-cash instruments – – – – – – – –
17 Other instruments – – – – – – – –
18 Other forms – – – – – – – –
19 Other identified staff 709 174 535 (3) – 154 163 63
20 Cash-based 247 58 189 – – – 55 –
21 Shares or equivalent
ownership interests		 409 104 305 (3) – 136 96 57
Share-linked instruments or
22 equivalent non-cash instruments 53 12 41 – – 18 12 6
23 Other instruments – – – – – – – –
24 Other forms – – – – – – – –
25 Total amount 938 224 714 (16) – 219 184 77

Table 106: Remuneration of 1 million EUR or more per year (UK REM4)

2025 2024
EUR Identified staff that
are high earners
as set out in Article
450(i) CRR
Number of employees		 Identified staff that
are high earners
as set out in Article
450(i) CRR
Number of employees
1 1,000,000 to below 1,500,000 157 164
2 1,500,000 to below 2,000,000 54 54
3 2,000,000 to below 2,500,000 33 25
4 2,500,000 to below 3,000,000 8 16
5 3,000,000 to below 3,500,000 6 10
6 3,500,000 to below 4,000,000 7 6
7 4,000,000 to below 4,500,000 2 4
8 4,500,000 to below 5,000,000 5 4
9 5,000,000 to below 6,000,000 1 2
10 6,000,000 to below 7,000,000 4 3
11 7,000,000 to below 8,000,000 1 2
12 8,000,000 to below 9,000,000 2 1
13 13,000,000 to below 14,000,000 - 1
14 14,000,000 to below 15,000,000 1 1
15 16,000,000 to below 17,000,000 1 –
Total 282 293

Table 107: Information on remuneration of staff whose professional activities have a material impact on institutions' risk profile (identified staff) (UK REM5)

2025
Management body remuneration Business areas
MB
Supervisory
function
\$million		 MB
Management
\$million		 Total MB
\$million		 Investment
banking
\$million		 Retail banking
\$million		 Asset
management
\$million		 Corporate
functions
\$million		 Independent
internal
control
functions
\$million		 All other
\$million		 Total
\$million
1 Total number
of identified staff		 691
2 Of which: members
of the MB		 10 2 12
3 Of which: other senior
management		 2 1 - 5 4 1
4 Of which: other
identified staff		 383 59 - 95 118 11
5 Total remuneration
of identified staff		 5 19 24 570 87 - 163 83 17
6 Of which: variable
remuneration		 - 14 14 335 51 - 87 32 9
7 Of which: fixed
remuneration		 5 5 10 235 36 - 76 51 8
2024
Management body remuneration Business areas
MB Supervisory
function
\$million		 MB
Management
\$million		 Total MB
\$million		 Investment
banking
\$million		 Retail banking
\$million		 Asset
management
\$million		 Corporate
functions
\$million		 Independent
internal
control
functions
\$million		 All other
\$million		 Total
\$million
1 Total number
of identified staff		 700
2 Of which: members
of the MB		 11 2 13
3 Of which: other senior
management		 3 1 – 8 3 1
4 Of which: other
identified staff		 367 54 – 120 117 13
5 Total remuneration
of identified staff		 4 24 28 503 76 – 197 80 15
6 Of which: variable
remuneration		 – 18 18 283 43 – 98 31 7
7 Of which: fixed
remuneration		 4 6 10 220 33 – 99 49 8

9. Forward-looking statements

The information 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 limitation, projections, estimates, commitments, plans, approaches, ambitions and targets (including, without limitation, ESG commitments, ambitions and targets). Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'aim', 'continue' or other words of similar meaning to any of the foregoing. Forward-looking statements may also (or additionally) be identified by the fact that they do not relate only to historical or current facts.

By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. 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 objectives to differ materially from those expressed or implied in forward-looking statements. The factors include (but are not limited to): changes in global, political, economic, business, competitive and market forces or conditions, or in future exchange and interest rates; changes in environmental, geopolitical, social or physical risks; legal, regulatory and policy developments, including regulatory measures addressing climate change and broader sustainability-related issues; the development of standards and interpretations, including evolving requirements and practices in ESG reporting; the ability of the Group, together with governments and other stakeholders to measure, manage, and mitigate the impacts of climate change and broader sustainability-related issues effectively; risks arising out of health crises and pandemics; risks of cyber-attacks, data, information or security breaches or technology failures involving the Group; changes in tax rates or policy; future business combinations or dispositions; and other factors specific to the Group, including those identified in Standard Chartered PLC's Annual Report and the 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 activities of the Group, they should not be taken as a representation that such trends or activities will continue in the future.

No statement in this document is intended to be, 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 historical or published 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 disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please refer to Standard Chartered PLC's Annual Report and the financial statements of the Group for a discussion of certain of the risks and factors that could adversely impact the Group's actual results, and cause its plans and objectives, to differ materially from those expressed or implied in any forward-looking statements.

Annex 1

Standard Chartered Significant Subsidiaries Capital resources of significant subsidiaries

For local capital adequacy purposes, a range of approaches are applied in accordance with the regulatory requirements in force in each jurisdiction. Wherever possible, the approaches adopted at the Group level are applied locally.

Under Part 2, rule 2.3 of the CRR requires the application of disclosure requirements of Large subsidiaries of UK parent institutions, UK parent financial holding companies.

The capital resources of the Group's significant subsidiaries under CRR Part 2 are presented below. These subsidiaries are Standard Chartered – solo consolidated, a UK regulated banking entity, Standard Chartered Bank (Hong Kong) Limited, Standard Chartered Bank Korea Limited, and Standard Chartered Bank (Singapore) Limited.

The capital resources of these subsidiaries are calculated in accordance with the regulatory requirements applicable in the countries in which they are incorporated, and therefore cannot be aggregated, but are presented to align with the Group format.

The table below provides a summary view of the significant subsidiaries. The significant subsidiary data is subject to change due to local timing and local regulatory requirements.

Table 108: Capital resources of significant subsidiaries

2025
Standard
Chartered
– Solo
consolidation
\$million		 Standard
Chartered
Bank (HK) Ltd
\$million		 Standard
Chartered
Bank Korea
Ltd
\$million		 Standard
Chartered
Bank
(Singapore)
Ltd
\$million		 Standard
Chartered
– Solo
consolidation
\$million		 Standard
Chartered
Bank (HK)
Ltd2
\$million		 Standard
Chartered
Bank Korea
Ltd1
\$million		 Standard
Chartered
Bank
(Singapore)
Ltd1
\$million
Local Regulator PRA HKMA FSS MAS PRA HKMA FSS MAS
Common Equity Tier 1 capital
before regulatory adjustments		 22,971 22,164 3,583 7,742 23,047 21,561 3,586 7,480
Regulatory adjustments (8,445) (2,292) (194) (935) (8,317) (2,156) (240) (747)
Common Equity Tier 1 capital 14,526 19,872 3,388 6,807 14,730 19,405 3,346 6,733
Additional Tier 1 (AT1) capital:
instruments		 4,152 4,820 208 1,430 4,273 3,018 204 1,392
Tier 1 capital (T1 = CET1 + AT1) 18,678 24,691 3,597 8,237 19,003 22,422 3,550 8,125
Tier 2 capital 5,697 2,123 427 2,968 8,183 1,361 559 2,942
Total capital (TC = T1 + T2) 24,375 26,815 4,023 11,205 27,186 23,784 4,109 11,067
Total risk-weighted assets 130,608 104,849 21,680 51,348 126,383 109,927 20,826 45,467
Capital Ratios
Common Equity Tier 1 11.1% 19.0% 15.6% 13.3% 11.7% 17.7% 16.1% 14.8%
Tier 1 Capital 14.3% 23.5% 16.6% 16.0% 15.0% 20.4% 17.0% 17.9%
Total Capital 18.7% 25.6% 18.6% 21.8% 21.5% 21.6% 19.7% 24.3%

1 2024 Capital resources have been re-presented to align with local regulatory returns, which included late adjustments for Standard Chartered Korea Ltd and Standard Chartered Bank (Singapore) Ltd.

2 2024 has been re-presented to show Standard Chartered Bank (HK) Ltd on a consolidated basis. This also includes Standard Chartered Bank Korea Ltd.

Capital management – Standard Chartered – Solo consolidated

The Risk management approach section of the 2025 Annual Report and Accounts sets out our approach to capital management (pages 222 to 234). Tables 109 to 131 summarise the consolidated capital position of Standard Chartered – solo consolidated, as well as a summary of exposures, credit quality and remuneration.

2025
\$million		 2024
\$million
Common Equity Tier 1 (CET1) capital: instruments and reserves
1 Capital instruments and the related share premium accounts 20,893 20,893
Of which: Share premium accounts 296 296
2 Retained earnings1 3,543 3,815
3 Accumulated other comprehensive income (and other reserves) (3,766) (3,804)
5 Minority interests (amount allowed in consolidated CET1) – –
5a Independently reviewed interim and year-end profits/(loss)2 2,493 2,336
Foreseeable dividends3 (192) (193)
6 Common Equity Tier 1 (CET1) capital before regulatory adjustments 22,971 23,047
Common Equity Tier 1 capital: regulatory adjustments
7 Additional value adjustments (393) (324)
8 Intangible assets (net of related tax liability) (3,427) (3,166)
10 Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability where the conditions in Article 38 (3) CRR are met) (15) (25)
11 Fair value reserves related to gains or losses on cash flow hedges of financial instruments
that are not valued at fair value (38) 16
12 Negative amounts resulting from the calculation of expected loss amounts (259) (297)
14 Gains or losses on liabilities valued at fair value resulting from changes in own credit standing 308 244
15 Defined-benefit pension fund assets (99) (114)
Fair value gains and losses from own credit risk related to derivative liabilities (60) (84)
19 Direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial
sector entities where the institution has a significant investment in those entities (amount
above 10% threshold and net of eligible short positions) (negative amount) (4,447) (4,456)
UK-20a Exposure amount of the following items which qualify for a RW of 1250%, where the institution
opts for the deduction alternative (13) (111)
UK-20c Of which: securitisation positions (5) (4)
UK-20d Of which: free deliveries (8) (107)
22 Amount exceeding the 17,65% threshold (negative amount) –
27a Other regulatory adjustments to CET1 capital (including IFRS 9 transitional adjustments
when relevant) (2) –
28 Total regulatory adjustments to Common Equity Tier 1 (CET1) (8,445) (8,317)
29 Common Equity Tier 1 (CET1) capital 14,526 14,730
Additional Tier 1 (AT1) capital: instruments
30 Capital instruments and the related share premium accounts 5,722 5,722
31 Of which: classified as equity under applicable accounting standards 5,722 5,722
32 Of which: classified as liabilities under applicable accounting standards – –
36 Additional Tier 1 (AT1) capital before regulatory adjustments 5,722 5,722
Additional Tier 1 capital: regulatory adjustments
37 Direct, indirect and synthetic holdings by an institution of own AT1 instruments
(negative amount) (20) (20)
40 Direct, indirect and synthetic holdings by the institution of the AT1 instruments of
financial sector entities where the institution has a significant investment in those
entities (net of eligible short positions) (negative amount) (1,550) (1,429)
43 Total regulatory adjustments to Additional Tier 1 (AT1) capital (1,570) (1,449)
44 Additional Tier 1 (AT1) capital 4,152 4,273
45 Tier 1 capital (T1 = CET1 + AT1) 18,678 19,003
Tier 2 (T2) capital: instruments and provisions
46 Capital instruments and the related share premium accounts 8,909 11,117
47 Amount of qualifying items referred to in Article 484 (5) CRR and the related share
premium accounts subject to phase out from T2 as described in Article 486(4) CRR – –
48 Qualifying own funds instruments included in consolidated T2 capital (including minority
interests and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held
by third parties – –
51 Tier 2 (T2) capital before regulatory adjustments 8,909 11,117
Tier 2 capital: regulatory adjustments –
52 Direct, indirect and synthetic holdings by an institution of own T2 instruments
and subordinated loans		 (30) (30)

Table 109: Composition of regulatory own funds (UK CC1) – Solo consolidation

Table 109: Composition of regulatory own funds (UK CC1) – Solo consolidation continued

55 Direct, indirect and synthetic holdings by the institution of the T2 instruments and
subordinated loans of financial sector entities where the institution has a significant
investment in those entities (net of eligible short positions) (negative amount) (3,182) (2,904)
57 Total regulatory adjustments to Tier 2 (T2) capital (3,212) (2,934)
58 Tier 2 (T2) capital 5,697 8,183
59 Total capital (TC = T1 + T2) 24,375 27,186
60 Total Risk exposure amount 130,608 126,383
Capital ratios and buffers
61 Common Equity Tier 1 (as a percentage of total risk exposure amount) 11.1% 12.0%
62 Tier 1 (as a percentage of total risk exposure amount) 14.3% 15.2%
63 Total capital (as a percentage of total risk exposure amount) 18.7% 22.6%
64 Institution CET1 overall capital requirement (CET1 requirement in accordance with Article 92 (1)
CRR, plus additional CET1 requirement which the institution is required to hold in accordance
with point (a) of Article 104(1) CRD, plus combined buffer requirement in accordance with
Article 128(6) CRD) expressed as a percentage of risk exposure amount)		 9.25% 9.45%
65 Of which: capital conservation buffer requirement 2.50% 2.50%
66 Of which: countercyclical buffer requirement 0.37% 0.38%
67 Of which: systemic risk buffer requirement – –
UK-67a Of which: Global Systemically Important Institution (G-SII) or Other Systemically Important
Institution (O-SII) buffer		 – –
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk exposure amount) 4.74% 5.10%
Amounts below the thresholds for deduction (before risk weighting)
72 Direct and indirect holdings of own funds and eligible liabilities of financial sector entities
where the institution does not have a significant investment in those entities (amount below
10% threshold and net of eligible short positions)		 1,153 1,400
73 Direct and indirect holdings by the institution of the CET1 instruments of financial sector
entities where the institution has a significant investment in those entities (amount below
17.65% thresholds and net of eligible short positions)		 6,345 6,245
75 Deferred tax assets arising from temporary differences (amount below 17,65% threshold, net of
related tax liability where the conditions in Article 38 (3) CRR are met)		 282 376
Applicable caps on the inclusion of provisions in Tier 2
76 Credit risk adjustments included in T2 in respect of exposures subject to standardised
approach (prior to the application of the cap)		 – –
77 Cap on inclusion of credit risk adjustments in T2 under standardised approach 302 231
78 Credit risk adjustments included in T2 in respect of exposures subject to internal ratings-based
approach (prior to the application of the cap)		 – –
79 Cap for inclusion of credit risk adjustments in T2 under internal ratings-based approach 379 399

1 Retained earnings under CRD IV include the effect of regulatory consolidation adjustments.

2 Independently reviewed year-end profits are in accordance with regulatory consolidation rules.

3 Foreseeable dividends as at FY 2025 represent preference and AT1 securities dividends.

Table 110: Reconciliation of regulatory own funds to balance sheet in the audited financial statements (UK CC2) – Solo consolidation

2025 2024
Balance sheet as
in published
financial
statements		 Under regulatory
scope of
consolidation		 Balance sheet as
in published
financial
statements		 Under regulatory
scope of
consolidation
\$million \$million \$million \$million
Assets
Cash and balances at central banks 52,348 52,348 45,233 45,233
Financial assets held at fair value through profit or loss 99,894 96,816 88,349 85,699
Derivative financial instruments 66,631 66,631 82,844 82,844
Loans and advances to banks 11,108 11,108 11,755 11,755
Loans and advances to customers 80,091 80,091 77,597 77,597
Investment securities 79,684 77,839 82,101 81,134
Other assets 35,105 33,074 31,584 30,859
Current tax assets 412 447 516 553
Prepayments and accrued income 1,392 1,392 1,535 1,535
Interests in associates and joint ventures 10,802 14,695 10,671 13,354
Goodwill and intangible assets 2,245 2,245 1,988 1,988
Of which: goodwill 2,251 2,244 1,991 1,988
Of which: other intangibles (excluding MSRs) (6) 1 (3) –
Of which: MSRs – – – –
Property, plant and equipment 714 714 659 659
Deferred tax assets 251 251 233 233
'Retirement benefit schemes in surplus 104 104 118 118
Assets classified as held for sale 240 240 474 474
Total assets 441,021 437,995 435,656 434,034
Liabilities
Deposits by banks 20,607 20,607 17,824 17,824
Customer accounts 132,018 132,018 119,502 119,502
Repurchase agreements and other similar secured borrowing 4,828 4,828 9,845 9,845
Financial liabilities held at fair value through profit or loss 64,880 64,880 61,683 61,683
Derivative financial instruments 67,556 67,556 82,745 82,745
Debt securities in issue 37,849 37,849 36,081 36,081
Other liabilities 70,401 68,668 63,799 63,439
Current tax liabilities 254 254 294 294
Accruals and deferred income 2,620 2,627 2,441 2,447
Subordinated liabilities and other borrowed funds 8,158 8,158 9,801 9,801
Of which: considered as Additional Tier 1 capital – – – –
Of which: considered as Tier 2 capital 8,158 8,158 9,801 9,801
Deferred tax liabilities 358 358 308 309
Of which: DTLs related to goodwill 358 358 308 309
Of which: DTLs related to intangible assets (excluding MSRs) – – – –
Of which: DTLs related to MSRs – – – –
Provisions for liabilities and charges 191 191 186 186
Retirement benefit obligations 216 216 200 200
Liabilities included in disposal groups held for sale 150 150 – –
Total liabilities 410,086 408,360 404,709 404,356
Shareholders' Equity
Share capital and share premium account 21,643 21,643 21,643 21,643
Other reserves & Retained earnings 3,570 2,270 3,582 2,313
Total parent company shareholders' equity 25,213 23,913 25,225 23,956
Other equity instruments 5,722 5,722 5,722 5,722
Total equity excluding non-controlling interests 30,935 29,635 30,947 29,678
Non-controlling interest – – – –
Total equity 30,935 29,635 30,947 29,678
Total equity and liabilities 441,021 437,995 435,656 434,034

Countercyclical capital buffer – Standard Chartered – Solo consolidated Table 111: Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer (UK CCyB1) – Solo consolidation

2025
General credit exposures Relevant credit exposures –
Market risk		 Own funds requirements
Breakdown
by country		 Exposure
value
under the
standardised
approach
\$million		 Exposure
value under
the IRB
approach
\$million		 Sum of long
and short
positions of
trading book
exposures
for SA
\$million		 Value of
trading book
exposures for
internal
models
\$million		 Securitisation
exposures
Exposure
value for
non-trading
book
\$million		 Total
exposure
value
\$million		 Relevant
credit risk
exposures
– Credit risk
\$million		 Relevant
credit
exposures
– Market risk
\$million		 Relevant credit
exposures
– Securitisation
positions in the
non-trading
book
\$million		 Total
\$million		 Risk
weighted
exposure
amounts
%		 Own fund
requirements
weights
%		 Countercyclical
buffer rate (%)
%
Armenia – – – – – – – – – – – 0.0% 1.5%
Australia 245 3,093 286 – 286 3,910 88 21 4 113 1,415 1.9% 1.0%
Belgium – 498 2 – 21 521 5 – – 6 74
Bulgaria – – – – – – – – – – – 0.0% 2.0%
Chile – 77 91 – 3 171 3 4 – 7 82 0.1% 0.5%
Croatia – 5 – – – 5 – – – – 3 0.0% 1.5%
Cyprus – 32 – – – 32 – – – – 5 0.0% 1.0%
Czech
Republic		 – – 6 – – 6 – 1 – 1 18 0.0% 1.3%
Denmark 12 590 3 – 144 749 4 – 2 6 74 0.1% 2.5%
Estonia – – 4 – – 4 – – – – – 0.0% 1.5%
France 3 1,039 273 – 2 1,317 34 20 – 54 675 0.9% 1.0%
Germany 282 3,544 104 – 442 4,372 105 15 7 127 1,587 2.1% 0.8%
Greece – 26 7 – – 33 – 1 – 1 7 0.0% 0.3%
Hong Kong 349 3,081 237 – 109 3,776 72 11 2 85 1,061 1.4% 0.5%
Hungary – 87 195 – – 282 7 1 – 8 96 0.1% 1.0%
Iceland – – – – – – – – – – – 0.0% 2.5%
Ireland 29 2,206 1,023 – 109 3,367 25 82 2 109 1,364 1.8% 1.5%
Korea 66 1,172 246 – 11 1,495 28 10 – 38 476 0.6% 1.0%
Latvia – – – – – – – – – – – 0.0% 1.0%
Lithuania – – – – – – – – – – – 0.0% 1.0%
Luxembourg 150 4,220 101 – 429 4,900 73 7 6 86 1,071 1.4% 0.5%
Netherlands – 1,213 64 – 495 1,772 70 4 7 81 1,015 1.4% 2.0%
Norway – 347 7 – 222 576 11 – 3 15 190 0.3% 2.5%
Poland – 110 10 – – 120 3 – – 4 44 0.1% 1.0%
Romania – – – – – – – – – – – 0.0% 1.0%
Slovakia 1 1 – – – 2 – – – – 1 0.0% 1.5%
Slovenia – – 7 – – 7 – 1 – 1 10 0.0% 1.0%
Spain 8 113 42 – 23 186 8 4 – 12 151 0.2% 0.5%
Sweden – 227 52 – 181 460 9 5 3 17 214 0.3% 2.0%
United
Kingdom		 3,121 33,597 1,184 – 8,124 46,026 519 37 123 679 8,481 11.5% 2.0%
Other
countries		 18,275 127,973 9,849 – 7,768 163,865 4,041 311 115 4,464 55,805 87.3% 0.0%

Table 111: Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer (UK CCyB1) – Solo consolidation continued

Relevant credit exposures –
General credit exposures
Market risk
Own funds requirements
Sum of long
Securitisation
Relevant credit
Exposure
and short
Value of
exposures
exposures
value
Exposure
positions of
trading book
Exposure
Relevant
Relevant
– Securitisation
Risk
under the
value under
trading book
exposures for
value for
Total
credit risk
credit
positions in the
weighted
Own fund
standardised
the IRB
exposures
internal
non-trading
exposure
exposures
exposures
non-trading
exposure
requirements
Countercyclical
Breakdown
approach
approach
for SA
models
book
value
– Credit risk
– Market risk
book
Total
amounts
weights
buffer rate (%)
by country
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
\$million
%
%
%
Armenia
–
–
–
–
–
–
–
–
–
–
–
–
1.5%
Australia
156
2,333
144
–
34
2,667
82
11
–
94
1,170
0.7%
1.0%
Belgium
–
757
4
–
–
761
4
–
–
5
59
–
1.0%
Bulgaria
–
–
–
–
–
–
–
–
–
–
–
–
2.0%
Chile
–
129
25
–
–
154
3
3
–
6
78
–
0.5%
Croatia
–
7
–
–
–
7
–
–
–
–
4
–
1.5%
Cyprus
2
134
–
–
–
136
4
–
–
4
55
–
1.0%
Czech
Republic
–
–
3
–
–
3
–
–
–
–
4
–
1.3%
Denmark
6
665
1
–
–
672
20
–
–
20
248
0.2%
2.5%
Estonia
–
–
–
–
–
–
–
–
–
–
–
–
1.5%
France
14
4,117
221
–
–
4,352
66
10
–
76
946
0.6%
1.0%
Germany
31
6,709
329
–
3,152
10,220
85
8
47
140
1,747
1.1%
0.8%
Greece
5,692
72,370
620
–
3,902
82,583
1,776
8
60
1,844
23,048
14.6%
0.5%
Hong Kong
–
553
196
–
–
749
15
–
–
15
190
0.1%
0.5%
Hungary
–
–
–
–
–
–
–
–
–
–
–
–
2.5%
Iceland
53
2,113
33
–
78
2,278
32
50
1
83
1,041
0.7%
1.5%
Ireland
910
34,811
292
–
–
36,014
789
3
–
792
9,895
6.3%
1.0%
Korea
–
–
–
–
–
–
–
–
–
–
–
–
1.0%
Latvia
134
6,519
12
–
332
6,997
110
2
4
116
1,450
0.9%
0.5%
Lithuania
20
2,261
31
–
–
2,312
86
2
–
88
1,099
0.7%
2.0%
Luxembourg
1
239
4
–
–
244
10
–
–
11
131
0.1%
2.5%
Netherlands
1
–
–
–
–
1
–
–
–
–
–
–
1.0%
Norway
–
–
–
–
–
–
–
–
–
–
–
–
1.5%
Poland
–
–
–
–
–
–
–
–
–
–
–
–
0.5%
Romania
–
1,229
8
–
–
1,238
28
1
–
30
374
0.2%
2.0%
Slovakia
3,780
41,306
1,054
–
18,348
64,487
822
27
265
1,114
13,926
8.8%
2.0%
Slovenia
36,254
229,587
16,766
–
5,482
288,090
7,533
572
79
8,184
102,302
64.8%
–
Spain
8
113
42
–
23
186
8
4
–
12
151
0.2%
0.5%
Sweden
–
227
52
–
181
460
9
5
3
17
214
0.3%
2.0%
United
Kingdom
3,121
33,597
1,184
–
8,124
46,026
519
37
123
679
8,481
11.5%
2.0%
Other
countries
18,275
127,973
9,849
–
7,768
163,865
4,041
311
115
4,464
55,805
87.3%
0.0%		 2024

Table 112: Amount of institution-specific countercyclical capital buffer (UK CCyB2) – Solo consolidation

2025
\$million		 2024
\$million
1 Total risk exposure amount 130,608 126,383
2 Institution specific countercyclical capital buffer rate 0.37% 0.38%
3 Institution specific countercyclical capital buffer requirement 483 479

Leverage ratio – Standard Chartered – Solo consolidated Table 113: LRSum: Summary reconciliation of accounting assets and leverage ratio exposures (UK LR1) – Solo consolidation

2025
\$million		 2024
\$million
1 Total assets as per published financial statements 441,020 435,691
2 Adjustment for entities which are consolidated for accounting purposes but are outside
the scope of prudential consolidation		 (3,026) (1,622)
3 (Adjustment for securitised exposures that meet the operational requirements for the
recognition of risk transference)		 – –
4 (Adjustment for exemption of exposures to central banks) (48,691) (43,583)
5 (Adjustment for fiduciary assets recognised on the balance sheet pursuant to the applicable
accounting framework but excluded from the total exposure measure in accordance with
point (i) of Article 429a(1) of the CRR)		 – –
6 Adjustment for regular-way purchases and sales of financial assets subject to trade
date accounting		 (493) (48)
7 Adjustment for eligible cash pooling transactions – –
8 Adjustment for derivative financial instruments 1,630 (25,002)
9 Adjustment for securities financing transactions (SFTs) 5,869 3,706
10 Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts
of off-balance sheet exposures)		 69,910 68,672
11 (Adjustment for prudent valuation adjustments and specific and general provisions
which have reduced tier 1 capital (leverage))		 (651) (621)
UK-11a (Adjustment for exposures excluded from the total exposure measure in accordance
with point (c) of Article 429a(1) of the CRR)		 – –
UK-11b (Adjustment for exposures excluded from the total exposure measure in accordance
with point (j) of Article 429a(1) of the CRR)		 – –
12 Other adjustments1 (17,238) (15,415)
13 Total exposure measure 448,330 421,778

1 Other Adjustments include Cash Collateral posted \$(7,674) million, Tier-1 Capital deduction other than disclosed in above row 12 \$(10,306) million, DTL \$91m million.

Table 114: LRCom: Leverage ratio common disclosure (UK LR2) – Solo consolidation

2025
\$million		 2024
\$million
On-balance sheet exposures (excluding derivatives and SFTs)
1 On-balance sheet items (excluding derivatives, SFTs, but including collateral) 301,562 278,060
2 Gross-up for derivatives collateral provided, where deducted from the balance sheet assets
pursuant to the applicable accounting framework		 – –
3 (Deductions of receivables assets for cash variation margin provided in derivatives
transactions)		 (7,674) (7,634)
4 (Adjustment for securities received under securities financing transactions that are recognised
as an asset)		 – –
5 (General credit risk adjustments to on-balance sheet items) – –
6 (Asset amounts deducted in determining tier 1 capital (leverage)) (10,306) (8,477)
7 Total on-balance sheet exposures (excluding derivatives and SFTs) 283,582 261,949
Derivative exposures
8 Replacement cost associated with SA-CCR derivatives transactions (i.e. net of eligible cash
variation margin)		 12,716 15,567
UK-8a Derogation for derivatives: replacement costs contribution under the simplified standardised
approach		 – –
9 Add-on amounts for potential future exposure associated with SA-CCR derivatives
transactions		 51,815 44,909
UK-9a Derogation for derivatives: potential future exposure contribution under the simplified
standardised approach		 – –
UK-9b Exposure determined under the original exposure method – –
10 (Exempted CCP leg of client-cleared trade exposures) (SA-CCR) (5,324) (6,035)
UK-10a (Exempted CCP leg of client-cleared trade exposures) (simplified standardised approach) – –
UK-10b (Exempted CCP leg of client-cleared trade exposures) (original exposure method) – –
11 Adjusted effective notional amount of written credit derivatives 34,871 103,787
12 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) (25,817) (100,386)
13 Total derivatives exposures 68,261 57,842
Securities financing transaction exposures
14 Gross SFT assets (with no recognition of netting), after adjustment for sales accounting
transactions		 133,635 111,445
15 (Netted amounts of cash payables and cash receivables of gross SFT assets) (64,235) (38,253)
16 Counterparty credit risk exposure for SFT assets 5,869 3,706
UK-16a Derogation for SFTs: counterparty credit risk exposure in accordance with Articles 429e(5)
and 222 of the CRR		 – –
17 Agent transaction exposures – –
UK-17a (Exempted CCP leg of client-cleared SFT exposures) – –
18 Total securities financing transaction exposures 75,268 76,898
Other off-balance sheet exposures
19 Off-balance sheet exposures at gross notional amount 206,520 201,646
20 (Adjustments for conversion to credit equivalent amounts) (136,610) (132,974)
21 (General provisions deducted in determining tier 1 capital (leverage) and specific provisions
associated with off-balance sheet exposures)		 – –
22 Off-balance sheet exposures 69,910 68,672
Excluded exposures
UK-22a (Exposures excluded from the total exposure measure in accordance with point (c) of Article
429a(1) of the CRR)		 – –
UK-22b (Exposures exempted in accordance with point (j) of Article 429a(1) of the CRR (on- and off
balance sheet))		 – –
UK-22g (Excluded excess collateral deposited at triparty agents) – –
UK-22k (Total exempted exposures) – –
Capital and total exposures
23 Tier 1 capital (leverage) 18,678 19,003
24 Total exposure measure including claims on central banks 497,021 465,361
UK-24a (-) Claims on central banks excluded (48,691) (43,583)
UK-24b Total exposure measure excluding claims on central banks1 448,330 421,778
2025
\$million		 2024
\$million
Leverage ratio
25 Leverage ratio excluding claims on central banks (%) 4.2% 4.5%
UK-25a Fully loaded ECL accounting model leverage ratio excluding claims on central banks (%) 4.2% 4.5%
UK-25b Leverage ratio excluding central bank reserves as if the temporary treatment of unrealised
gains and losses measured at fair value through other comprehensive income had not been
applied (%) 4.2% 4.5%
UK-25c Leverage ratio including claims on central banks (%) 3.8% 4.1%
26 Regulatory minimum leverage ratio requirement (%) 3.3% 3.3%
Additional leverage ratio disclosure requirements – leverage ratio buffers
27 Leverage ratio buffer (%) 0.1% 0.1%
UK-27a Of which: G-SII or O-SII additional leverage ratio buffer (%) – –
UK-27b Of which: countercyclical leverage ratio buffer (%) 0.1% 0.1%
Additional leverage ratio disclosure requirements – disclosure of mean values
28 Mean of daily values of gross SFT assets, after adjustment for sale accounting transactions
and netted of amounts of associated cash payables and cash receivable		 75,241 78,234
29 Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and
netted of amounts of associated cash payables and cash receivables		 69,399 73,192
UK-31 Average total exposure measure including claims on central banks 519,731 492,115
UK-32 Average total exposure measure excluding claims on central banks 466,499 439,529
UK-33 Average leverage ratio including claims on central banks 3.6% 3.8%
UK-34 Average leverage ratio excluding claims on central banks 4.1% 4.3%

Table 114: LRCom: Leverage ratio common disclosure (UK LR2) – Solo consolidation continued

Table 115: LRSpl: Split-up of on balance sheet exposures (excluding derivatives, SFTs and exempted exposures) (UK LR3) – Solo consolidation

2025
\$million		 2024
\$million
UK-1 Total on-balance sheet exposures (excluding derivatives, SFTs, and exempted exposures),
of which: 293,888 270,426
UK-2 Trading book exposures 41,455 30,380
UK-3 Banking book exposures, of which: 252,433 240,046
UK-4 Covered bonds 3,019 3,781
UK-5 Exposures treated as sovereigns 110,937 104,829
UK-6 Exposures to regional governments, MDB, international organisations and PSE not treated
as sovereigns 9,975 9,002
UK-7 Institutions 17,794 18,197
UK-8 Secured by mortgages of immovable properties 6,391 6,368
UK-9 Retail exposures 3,925 4,394
UK-10 Corporates 63,620 56,150
UK-11 Exposures in default 2,150 2,082
UK-12 Other exposures (e.g. equity, securitisations, and other non-credit obligation assets) 34,621 35,242

Credit Risk quality – Standard Chartered – Solo consolidated

Table 116: Performing and non-performing exposures and related provisions (UK CR1) – Solo consolidation

2025
Gross carrying amount/nominal amount Accumulated impairment, accumulated negative changes
in fair value due to credit risk and provisions		 Collateral and financial
guarantees received
Performing exposures Non-performing
exposures		 Performing exposures
– accumulated
impairment
and provisions		 Non-performing
exposures
– accumulated
impairment,
accumulated
negative changes
in fair value due to
credit risk
and provisions
\$million Of which
stage 1
\$million		 Of which
stage 2
\$million		 \$million Of which
stage 2
\$million		 Of which
stage 3
\$million		 \$million Of which
stage 1
\$million		 Of which
stage 2
\$million		 \$million Of which
stage 2
\$million		 Of which
stage 3
\$million		 Accumulated
partial
write-off
\$million		 On
performing
exposures
\$million		 On non
performing
exposures
\$million
005 Cash balances
at central banks
and other
demand
deposits		 54,111 53,987 123 – – – – – – – – – – – –
010 Loans and
advances		 156,527 152,542 3,985 2,698 – 2,698 (237) (125) (112) (1,443) – (1,443) (3,377) 23,144 325
020 Central banks 4,266 4,266 – – – – – – – – – – – 6 –
030 General
governments		 1,676 1,601 75 339 – 339 (1) – – (25) – (25) (0) 733 –
040 Credit
institutions		 43,871 43,751 120 9 – 9 (1) (1) – (4) – (4) (27) 1,442 –
050 Other financial
corporations		 54,901 54,550 351 18 – 18 (11) (4) (7) (12) – (12) (59) 6,818 –
060 Non-financial
corporations		 42,986 39,834 3,152 1,795 – 1,795 (136) (48) (88) (1,312) – (1,312) (3,291) 7,538 76
070 Of which SMEs 3,721 3,646 75 142 – 142 (14) (12) (2) (112) – (112) – 444 4
080 Households 8,827 8,540 287 537 – 537 (89) (72) (17) (89) – (89) – 6,607 249
090 Debt securities 78,211 77,820 391 – – – (36) (34) (2) – – – – 120 –
100 Central banks 7,984 7,984 – – – – (8) (8) – – – – – – –
110 General
governments		 37,858 37,565 293 – – – (14) (13) (1) – – – – 30 –
120 Credit
institutions		 23,550 23,550 – – – – (6) (6) – – – – – 9 –
130 Other financial
corporations		 8,004 7,906 98 – – – (8) (7) (1) – – – – 5 –
140 Non-financial
corporations		 816 816 – – – – – – – – – – – 77 –
150 Off-balance
sheet exposures		 170,826 167,693 3,133 523 – 523 (64) (36) (28) (90) – (90) 4,140 48
160 Central banks 391 391 – – – – – – – – – – – –
170 General
governments		 1,905 1,873 32 – – – (1) (1) – – – – 213 –
180 Credit
institutions		 9,664 9,506 158 6 – 6 (1) (1) – – – – 148 –
190 Other financial
corporations		 72,144 71,368 776 1 – 1 (3) (3) (1) – – – 235 –
200 Non-financial
corporations		 83,413 81,295 2,118 515 – 515 (58) (31) (27) (90) – (90) 3,509 48
210 Households 3,308 3,259 50 1 – 1 – – – – – – 35 –
220 Total 459,675 452,042 7,632 3,221 – 3,221 (337) (195) (142) (1,533) – (1,533) (3,377) 27,404 374

Table 116: Performing and non-performing exposures and related provisions (UK CR1) – Solo consolidation continued

2024
Gross carrying amount/nominal amount Accumulated impairment, accumulated negative changes
in fair value due to credit risk and provisions		 Collateral and financial
guarantees received
Performing exposures Non-performing
exposures		 Performing exposures
– accumulated
impairment
and provisions		 Non-performing
exposures
– accumulated
impairment,
accumulated negative
changes in fair value
due to credit risk
and provisions
\$million Of which
stage 1
\$million		 Of which
stage 2
\$million		 \$million Of which
stage 1
\$million		 Of which
stage 2
\$million		 \$million Of which
stage 1
\$million		 Of which
stage 2
\$million		 \$million Of which
stage 2
\$million		 Of which
stage 3
\$million		 Accumulated
partial
write-off
\$million		 On
performing
exposures
\$million		 On non
performing
exposures
\$million
005 Cash balances
at central banks
and other
demand
deposits		 46,333 46,193 140 – – – – – – – – – – – –
010 Loans and
advances		 156,961 152,708 4,253 2,688 – 2,688 (213) (115) (98) (1,580) – (1,580) (3,339) 26,147 367
020 Central banks
030 General		 3,102 3,102 – – – – – – – – – – – 10 –
governments
040 Credit
institutions		 10,776
36,609		 10,392
36,502		 384
107		 94
8		 –
–		 94
8		 (1)
(1)		 –
(1)		 (1)
–		 (41)
(6)		 –
–		 (41)
(6)		 –
(27)		 911
2,046		 5
–
050 Other financial
corporations		 58,250 57,803 447 19 – 19 (6) (5) (1) (19) – (19) (59) 9,445 –
060 Non-financial
corporations		 39,521 36,345 3,176 2,177 – 2,177 (128) (53) (75) (1,426) – (1,426) (3,253) 7,697 118
070 Of which SMEs 3,922 3,822 100 209 – 209 (13) (10) (3) (123) – (123) – 572 2
080 Households 8,703 8,564 139 390 – 390 (77) (56) (21) (88) – (88) – 6,038 244
090 Debt securities 81,450 81,205 245 – – – (18) (17) (1) – – – – 51 –
100 Central banks 6,783 6,783 – – – – (3) (3) – – – – – 1 –
110 General
governments		 34,313 34,068 245 – – – (8) (7) (1) – – – – – –
120 Credit
institutions		 21,396 21,396 – – – – (1) (1) – – – – – 14 –
130 Other financial
corporations		 18,097 18,097 – – – – (5) (5) – – – – – – –
140 Non-financial
corporations		 861 861 – – – – (1) (1) – – – – – 36 –
150 Off-balance
sheet exposures		 137,886 134,056 3,830 445 – 445 (47) (25) (22) (102) – (102) 2,227 20
160 Central banks 111 111 – – – – – – – – – – – –
170 General
governments		 4,142 4,124 18 – – – – – – – – – 123 –
180 Credit
institutions		 8,569 8,282 287 17 – 17 (2) (1) (1) (4) – (4) 47 –
190 Other financial
corporations		 52,391 52,083 308 1 – 1 (3) (3) – – – – 610 –
200 Non-financial
corporations		 69,706 66,545 3,161 427 – 427 (41) (20) (21) (98) – (98) 1,296 20
210 Households 2,967 2,911 56 – – – (1) (1) – – – – 151 –
220 Total 422,630 414,162 8,468 3,133 – 3,133 (278) (157) (121) (1,682) – (1,682) (3,339) 28,425 387

Table 117: Maturity of exposures (UK CR1-A) – Solo consolidation

2025
Net exposure value
On demand
\$million		 <= 1 year
\$million		 > 1 year <= 5 years
\$million		 > 5 years
\$million		 No stated
maturity
\$million		 Total
\$million
1 Loans and advances 7,967 96,792 30,372 25,972 – 161,102
2 Debt securities 1 35,294 28,390 45,566 – 109,251
3 Total 7,968 132,086 58,762 71,537 – 270,353
2024
Net exposure value
On demand
\$million		 <= 1 year
\$million		 > 1 year <= 5 years
\$million		 > 5 years
\$million		 No stated
maturity
\$million		 Total
\$million
1 Loans and advances 7,412 101,739 26,002 21,496 – 156,649
2 Debt securities 139 27,849 27,908 45,785 – 101,681

3 Total 7,551 129,588 53,910 67,281 – 258,330 Table 118: Changes in the stock of non-performing loans and advances (UK CR2) – Solo consolidation

2025 2024
Gross carrying
amount
\$million		 Gross carrying
amount
\$million
010 Initial stock of non-performing loans and advances 2,688 3,767
020 Inflows to non-performing portfolios 1,221 601
030 Outflows from non-performing portfolios (1,212) (1,680)
040 Outflows due to write-offs (207) (433)
050 Outflow due to other situations (1,005) (1,247)
060 Final stock of non-performing loans and advances 2,697 2,688

Table 119: Credit quality of forborne exposures (UK CQ1) – Solo consolidation

2025
Gross carrying amount/nominal amount of exposures
with forbearance measures		 Accumulated impairment,
accumulated negative changes
in fair value due to credit risk
and provisions		 Collateral received
and financial guarantees
received on forborne exposures
Non-performing forborne On performing On
non-performing		 Of which collateral
and financial
guarantees received
on non-performing
Performing
forborne
\$million		 \$million Of which
defaulted
\$million		 Of which
impaired
\$million		 forborne
exposures
\$million		 forborne
exposures
\$million		 \$million exposures with
forbearance measures
\$million
005 Cash balances at central banks
and other demand deposits		 – – – – – – – –
010 Loans and advances 61 596 596 596 (2) (310) 33 23
020 Central banks – – – – – – – –
030 General governments – 27 27 27 – (1) – –
040 Credit institutions – – – – – – – –
050 Other financial corporations 48 18 18 18 – (18) – –
060 Non-financial corporations 10 551 551 551 (1) (291) 30 23
070 Households 3 – – – – – 2 –
080 Debt Securities – – – – – – – –
090 Loan commitments given – – – – – – – –
100 Total 61 596 596 596 (2) (310) 33 23

Table 119: Credit quality of forborne exposures (UK CQ1) – Solo consolidation continued

2024
with forbearance measures Gross carrying amount/nominal amount of exposures Accumulated impairment,
accumulated negative changes in fair
value due to credit risk and provisions		 Collateral received
and financial guarantees
received on forborne exposures
Non-performing forborne Of which collateral
Performing
forborne
\$million		 \$million Of which
defaulted
\$million		 Of which
impaired
\$million		 On performing
forborne
exposures
\$million		 On
non-performing
forborne
exposures
\$million		 \$million and financial
guarantees received
on non-performing
exposures with
forbearance measures
\$million
005 Cash balances at central banks
and other demand deposits		 – – – – – – – –
010 Loans and advances 15 708 708 708 – (397) 95 81
020 Central banks – – – – – – – –
030 General governments – – – – – – – –
040 Credit institutions – – – – – – – –
050 Other financial corporations – 19 19 19 – (19) – –
060 Non-financial corporations 11 688 688 688 – (378) 92 81
070 Households 4 1 1 1 – – 3 –
080 Debt Securities – – – – – – – –
090 Loan commitments given – – – – – – – –
100 Total 15 708 708 708 – (397) 95 81

Table 120: Credit quality of performing and non-performing exposures by past due days (UK CQ3) – Solo consolidation

2025
Gross carrying amount/nominal amount
Performing exposures Non-performing exposures
\$million Not past due
or past due
≤ 30 days
\$million		 Past due
> 30 days
≤ 90 days
\$million		 \$million Unlikely to
pay that are
not past due
or are past
due ≤ 90 days
\$million		 Past due
> 90 days
≤ 180 days
\$million		 Past due
> 180 days
≤ 1 year
\$million		 Past due
> 1 year ≤ 2
years
\$million		 Past due
> 2 years ≤ 5
years
\$million		 Past due
> 5 years
≤ 7 years
\$million		 Past due
> 7 years
\$million		 Of which
defaulted
\$million
005 Cash balances at
central banks and
other demand
deposits		 54,111 54,111 – – – – – – – – – –
010 Loans and advances 156,527 156,179 348 2,698 1,234 361 4 165 161 290 483 2,698
020 Central banks 4,266 4,266 – – – – – – – – – –
030 General governments 1,677 1,677 – 339 290 – – 1 11 37 – 339
040 Credit institutions 43,871 43,870 1 9 8 1 – – – – – 9
050 Other financial
corporations		 54,901 54,802 99 18 – – – – 3 – 15 18
060 Non-financial
corporations		 42,986 42,791 196 1,795 792 – – 140 143 252 468 1,795
070 Of which SMEs 3,721 3,716 4 142 – – – 12 40 32 58 142
080 Households 8,827 8,774 53 537 145 360 4 24 4 1 – 537
090 Debt securities 78,211 78,211 – – – – – – – – – –
100 Central banks 7,984 7,984 – – – – – – – – – –
110 General governments 37,858 37,858 – – – – – – – – – –
120 Credit institutions 23,550 23,550 – – – – – – – – – –
130 Other financial
corporations		 8,004 8,004 – – – – – – – – – –
140 Non-financial
corporations		 816 816 – – – – – – – – – –
150 Off-balance-sheet
exposures		 170,826 523 523
160 Central banks 391 – –
170 General governments 1,905 0 0
180 Credit institutions 9,665 6 6
190 Other financial
corporations		 72,144 1 1
200 Non-financial
corporations		 83,413 515 515
210 Households 3,308 1 1
220 Total 459,675 288,501 348 3,221 1,234 361 4 165 161 290 483 3,221

Table 120: Credit quality of performing and non-performing exposures by past due days (UK CQ3) – Solo consolidation continued

2024
Gross carrying amount/nominal amount
Performing exposures Non-performing exposures
\$million Not past due
or past due
≤ 30 days
\$million		 Past due
> 30 days
≤ 90 days
\$million		 \$million Unlikely to
pay that are
not past due
or are past
due ≤ 90 days
\$million		 Past due
> 90 days
≤ 180 days
\$million		 Past due
> 180 days
≤ 1 year
\$million		 Past due
> 1 year ≤ 2
years
\$million		 Past due
> 2 years ≤ 5
years
\$million		 Past due
> 5 years
≤ 7 years
\$million		 Past due
> 7 years
\$million		 Of which
defaulted
\$million
005 Cash balances at
central banks and
other demand
deposits		 46,333 46,333 – – – – – – – – – –
010 Loans and advances 156,961 156,875 86 2,688 997 370 124 200 393 178 426 2,688
020 Central banks 3,102 3,102 – – – – – – – – – –
030 General governments 10,776 10,776 – 94 50 1 – – 43 – – 94
040 Credit institutions 36,609 36,609 – 8 7 1 – – – – – 8
050 Other financial
corporations		 58,250 58,250 – 19 1 – – 3 – – 15 19
060 Non-financial
corporations		 39,521 39,496 25 2,177 939 23 120 163 344 177 411 2,177
070 Of which SMEs 3,922 3,917 5 209 51 5 3 8 45 62 35 209
080 Households 8,703 8,642 61 390 – 345 4 34 6 1 – 390
090 Debt securities 81,450 81,450 – – – – – – – – – –
100 Central banks 6,783 6,783 – – – – – – – – – –
110 General governments 34,313 34,313 – – – – – – – – – –
120 Credit institutions 21,396 21,396 – – – – – – – – – –
130 Other financial
corporations		 18,097 18,097 – – – – – – – – – –
140 Non-financial
corporations		 861 861 – – – – – – – – – –
150 Off-balance-sheet
exposures		 137,886 445 445
160 Central banks 111 – –
170 General governments 4,142 – –
180 Credit institutions 8,569 17 17
190 Other financial
corporations		 52,391 1 1
200 Non-financial
corporations		 69,706 427 427
210 Households 2,967 – –
220 Total 422,630 284,658 86 3,133 997 370 124 200 393 178 426 3,133

Table 121: Quality of non-performing exposures by geography (UK CQ4) – Solo consolidation

2025
Gross carrying amount
Of which
non-performing		 Provisions on Accumulated negative
changes in fair value
due to credit risk on
non-performing
exposures
\$million
\$million \$million Of which defaulted
\$million		 Of which loans and
advances subject to
impairment
\$million		 Accumulated
impairment
\$million		 off-balance-sheet
commitments and
financial guarantees
given
\$million
010 On-balance-sheet
exposures		 291,547 2,698 (1,716) –
020 United Kingdom 33,705 9 (26) –
030 United States 82,503 71 (33) –
040 India 20,355 301 (310) –
050 Japan 13,471 – (1) –
060 Other countries 141,513 2,317 (1,347) –
070 Off-balance-sheet
exposures		 171,348 523 (154)
080 United Kingdom 70,568 2 (7)
090 United States 45,935 11 (18)
100 India 10,163 59 (53)
110 Japan 1,710 – (1)
120 Other countries 42,972 451 (75)
130 Total 462,895 3,221 (1,716) (154) –
Gross carrying amount
Of which
non-performing		 Provisions on Accumulated negative
\$million \$million Of which defaulted
\$million		 Of which loans and
advances subject to
impairment
\$million		 Accumulated
impairment
\$million		 off-balance-sheet
commitments and
financial guarantees
given
\$million		 changes in fair value
due to credit risk on
non-performing
exposures
\$million
010 On-balance-sheet
exposures		 287,432 2,688 (1,810) –
020 United Kingdom 33,133 13 (26) –
030 United States 77,305 2 (7) –
040 India 22,645 409 (364) –
050 Japan 15,915 – (11) –
060 Other countries 138,434 2,264 (1,402) –
070 Off-balance-sheet
exposures		 138,331 445 (149)
080 United Kingdom 17,380 5 (6)
090 United States 49,251 – (9)
100 India 9,992 77 (56)
110 Japan 1,591 – (1)
120 Other countries 60,117 363 (77)
130 Total 425,763 3,133 (1,810) (149) –

2024

Table 122: Credit quality of loans and advances to non-financial corporations by industry (UK CQ5) – Solo consolidation

2025
Gross carrying amount
Of which
non-performing		 Accumulated negative
changes in fair value
\$million \$million Of which defaulted
\$million		 Of which loans and
advances subject to
impairment
\$million		 Accumulated
impairment
\$million		 due to credit risk on
non-performing
exposures
\$million
005 Cash balances at central banks and other
demand deposits		 52,191 – – –
010 Agriculture, forestry and fishing 66 2 (4) –
020 Mining and quarrying 2,384 15 (23) –
030 Manufacturing 13,905 746 (566) –
040 Electricity, gas, steam and air conditioning
supply		 4,354 230 (79) –
050 Water supply 164 – – –
060 Construction 854 63 (74) –
070 Wholesale and retail trade 10,335 373 (343) –
080 Transport and storage 1,777 62 (3) –
090 Accommodation and food service activities 856 66 (40) –
100 Information and communication 1,595 33 (49) –
110 Financial and insurance activities 67 – – –
120 Real estate activities 5,581 135 (103) –
130 Professional, scientific and technical activities 254 6 (5) –
140 Administrative and support service activities 316 2 (4) –
150 Public administration and defence,
compulsory social security		 – – – –
160 Education 41 – – –
170 Human health services and social work
activities		 167 – – –
180 Arts, entertainment and recreation 30 – – –
190 Other services 2,036 61 (155) –
200 Total 44,782 1,795 (1,449) –
210 Households 9,364 537 (178) –
220 Total 106,337 2,332 (1,627) –
2024
Gross carrying amount
Of which
non-performing		 Accumulated negative
\$million \$million Of which defaulted
\$million		 Of which loans and
advances subject to
impairment
\$million		 Accumulated
impairment
\$million		 changes in fair value
due to credit risk on
non-performing
exposures
\$million
005 Cash balances at central banks and other
demand deposits		 45,066 – – –
010 Agriculture, forestry and fishing 144 6 (7) –
020 Mining and quarrying 3,037 218 (200) –
030 Manufacturing 15,395 920 (547) –
040 Electricity, gas, steam and air conditioning
supply		 3,415 187 (61) –
050 Water supply 116 – (1) –
060 Construction 717 90 (93) –
070 Wholesale and retail trade 9,941 436 (294) –
080 Transport and storage 1,835 61 (29) –
090 Accommodation and food service activities 685 65 (11) –
100 Information and communication 1,251 32 (77) –
110 Financial and insurance activities – – – –
120 Real estate activities 4,215 140 (84) –
130 Professional, scientific and technical activities 361 6 (6) –
140 Administrative and support service activities 343 16 (12) –
150 Public administration and defence,
compulsory social security		 – – – –
160 Education 11 – – –
170 Human health services and social work
activities		 196 – – –
180 Arts, entertainment and recreation 22 – – –
190 Other services 14 – (132) –
200 Total 41,698 2,177 (1,554) –
210 Households 9,093 390 (165) –
220 Total 95,857 2,567 (1,719) –

Table 123: CRM techniques overview: Disclosure of the use of credit risk mitigation techniques (UK CR3) – Solo consolidation

2025
Exposures
unsecured
\$million		 Exposures secured
\$million		 Of which secured
by collateral
\$million		 Of which secured
by financial
guarantees
\$million		 Of which secured
by credit
derivatives
\$million
1 Total loans 188,186 23,469 19,104 4,366 123
2 Total debt securities 78,055 120 70 50
3 Total exposures 266,241 23,589 19,174 4,416 123
4 Of which non-performing exposures 930 325 325 – –
5 Of which defaulted 930 325
2024
Exposures
unsecured
\$million		 Exposures secured
\$million		 Of which secured
by collateral
\$million		 Of which secured
by financial
guarantees
\$million		 Of which secured
by credit
derivatives
\$million
1 Total loans 177,675 26,514 22,163 4,351 –
2 Total debt securities 81,382 51 31 20
3 Total exposures 259,057 26,565 22,194 4,371 –
4 Of which non-performing exposures 741 367 367 – –
5 Of which defaulted 741 367

Table 124: Standardised approach – Credit risk exposure and CRM effects (UK CR4) – Solo consolidation

2025
Exposures before CCF and CRM1 Exposures post CCF and CRM RWA and RWA density
On-balance
sheet
\$million		 Off-balance
sheet
\$million		 On-balance
sheet
\$million		 Off-balance
sheet
\$million		 RWA
\$million		 RWA
density
%
Standardised Exposure Class
1 Central governments
or central banks		 14,726 240 15,634 554 704 4
2 Multilateral development banks 19,898 608 21,810 318 84 –
6 Institutions 8 165 – – – –
7 Corporates 18,156 20,760 4,259 957 4,235 81
8 Retail 3,040 1,282 2,874 59 2,051 70
9 Secured on real estate property 5,005 137 5,005 78 2,410 47
10 Exposures in default 96 7 96 3 99 100
11 Items belonging to regulatory
high risk categories		 376 141 167 2 253 150
15 Equity 2,446 – 2,446 – 6,115 250
16 Other items2 11,828 – 13,447 – 4,664 35
17 Total Standardised3 75,579 23,340 65,738 1,971 20,615 30
2024
Exposures before CCF and CRM1 Exposures post CCF and CRM RWA and RWA density
On-balance
sheet
\$million		 Off-balance
sheet
\$million		 On-balance
sheet
\$million		 Off-balance
sheet
\$million		 RWA
\$million		 RWA
density
%
Standardised Exposure Class
1 Central governments
or central banks		 14,116 189 14,926 718 746 4.77
2 Multilateral development banks 15,028 806 17,241 46 70 0.40
6 Institutions 6 138 – – – –
7 Corporates 4,949 4,430 3,259 622 3,167 81.60
8 Retail 2,959 1,435 2,889 68 2,059 69.63
9 Secured on real estate property 4,799 183 4,799 105 2,509 51.16
10 Exposures in default 123 9 123 6 128 99.22
11 Items belonging to regulatory
high risk categories		 163 248 149 25 260 149.43
15 Equity 1,865 – 1,865 – 4,661 249.92
16 Other items2 10,787 10 5,080 10 3,125 61.39
17 Total Standardised3 54,795 7,448 50,331 1,600 16,725 32.21

1 EAD before the effect of collateral and substitution.

2 Other items include public sector entities.

3 Refer to table 132 (OV1): Standardised approach \$13,796 million and amount below threshold for deduction \$6,819 million RWA.

Table 125: Liquidity Coverage Ratio (LCR) (UK LIQ1) – Solo consolidation

2025
Total unweighted value
(average)		 Total weighted value
(average)
31.03.25
\$million		 30.06.25
\$million		 30.09.25
\$million		 31.12.25
\$million		 31.03.25
\$million		 30.06.25
\$million		 30.09.25
\$million		 31.12.25
\$million
Number of data points used in
the calculation of averages		 12 12 12 12 12 12 12 12
High-Quality Liquid Assets
1 Total High-Quality Liquid
Assets (HQLA)		 88,828 88,491 89,813 89,647
Cash outflows
2 Retail deposits and deposits
from small business customers,
of which:		 14,484 15,181 15,759 16,318 1,763 1,944 2,092 2,189
3 Stable deposits 601 579 554 572 30 29 28 29
4 Less stable deposits 13,882 14,603 15,206 15,746 1,733 1,915 2,064 2,161
5 Unsecured wholesale
funding, of which:		 113,592 115,048 115,358 115,333 57,654 58,183 58,013 57,977
6 Operational deposits
(all counterparties) and
deposits in networks of
cooperative banks		 36,093 37,647 38,888 39,443 9,022 9,410 9,719 9,856
7 Non-operational deposits (all
counterparties)		 74,836 74,454 73,363 72,908 45,969 45,825 45,186 45,139
8 Unsecured debt 2,663 2,948 3,108 2,982 2,663 2,948 3,108 2,982
9 Secured wholesale funding 7,972 8,636 8,719 8,448
10 Additional requirements 67,588 68,290 66,968 65,541 22,463 22,942 21,493 19,256
11 Outflows related to derivative
exposures and other
collateral requirements		 19,107 19,049 16,293 12,509 13,016 13,187 11,499 8,811
12 Outflows related to loss of
funding on debt products – – – – – – – –
13 Credit and liquidity facilities 48,481 49,241 50,675 53,032 9,447 9,755 9,994 10,445
14 Other contractual
funding obligations		 5,656 5,799 6,275 7,383 3,134 3,105 3,482 4,545
15 Other contingent
funding obligations		 99,077 98,545 97,109 95,846 749 733 658 637
16 Total cash outflows 93,734 95,543 94,456 93,052
Cash inflows
17 Secured lending
(e.g. reverse repos)		 69,993 75,273 77,107 82,151 10,486 10,898 11,058 11,507
18 Inflows from fully
performing exposures 17,200 17,955 18,293 19,165 14,836 15,377 15,633 16,382
19 Other cash inflows 12,196 12,524 12,576 13,241 10,244 10,798 11,090 11,794
UK-19a (Difference between total
weighted inflows and total
weighted outflows arising from
transactions in third countries
where there are transfer
restrictions or which are
denominated in non
convertible currencies)		 – – – –
UK-19b (Excess inflows from a related
specialised credit institutions) – – – –
20 Total cash inflows 99,390 105,752 107,975 114,557 35,566 37,073 37,781 39,682
UK-20a Fully exempt inflows – – – – – – – –
UK-20b Inflows subject to 90% cap – – – – – – – –
UK-20c Inflows subject to 75% cap 90,138 96,157 98,619 105,600 35,566 37,073 37,781 39,682
Total adjusted value
21 Liquidity buffer 88,828 88,491 89,813 89,647
22 Total net cash outflows 58,168 58,470 56,675 53,370
23 Liquidity coverage ratio (%) 153.4% 151.8% 159.7% 169.2%

Table 125: Liquidity Coverage Ratio (LCR) (UK LIQ1) – Solo consolidation continued

2024
Total unweighted value
(average)		 Total weighted value
(average)
31.03.25
\$million		 30.06.25
\$million		 30.09.25
\$million		 31.12.25
\$million		 31.03.25
\$million		 30.06.25
\$million		 30.09.25
\$million		 31.12.25
\$million
Number of data points used in
the calculation of averages		 12 12 12 12 12 12 12 12
High-Quality Liquid Assets
1 Total High-Quality Liquid
Assets (HQLA)		 103,106 98,688 92,637 90,026
Cash outflows
2 Retail deposits and deposits
from small business customers,
of which:		 13,172 13,420 13,713 14,048 1,433 1,462 1,518 1,629
3 Stable deposits 605 669 692 649 30 33 35 32
4 Less stable deposits 12,567 12,752 13,021 13,399 1,403 1,429 1,483 1,597
5 Unsecured wholesale
funding, of which:		 114,034 111,473 111,342 112,986 61,167 59,585 58,323 58,065
6 Operational deposits
(all counterparties) and
deposits in networks of
cooperative banks		 33,856 32,836 33,261 34,455 8,462 8,207 8,314 8,612
7 Non-operational deposits (all
counterparties)		 75,679 74,484 74,635 75,603 48,208 47,224 46,564 46,525
8 Unsecured debt 4,498 4,153 3,445 2,928 4,498 4,153 3,445 2,928
9 Secured wholesale funding 6,068 6,324 6,693 7,165
10 Additional requirements 63,961 64,425 65,300 66,789 21,547 20,849 21,170 22,193
11 Outflows related to derivative
exposures and other
collateral requirements		 15,433 16,353 17,495 18,820 12,126 11,609 12,012 12,900
12 Outflows related to loss of
funding on debt products		 – – – – – – – –
13 Credit and liquidity facilities 48,528 48,072 47,805 47,969 9,421 9,240 9,158 9,293
14 Other contractual
funding obligations		 4,966 4,751 5,087 5,363 2,682 2,975 3,105 3,140
15 Other contingent
funding obligations		 96,129 97,467 98,917 99,574 455 567 706 745
16 Total cash outflows 93,354 91,762 91,515 92,938
Cash inflows
17 Secured lending
(e.g. reverse repos)		 53,322 53,445 57,577 62,593 6,135 6,843 7,913 8,892
18 Inflows from fully
performing exposures 16,408 15,854 16,320 16,894 14,693 14,067 14,357 14,706
19
UK-19a		 Other cash inflows
(Difference between total
weighted inflows and total
weighted outflows arising from
transactions in third countries
where there are transfer
restrictions or which are
denominated in non		 10,615 11,366 11,806 12,433 8,407 9,097 9,473 10,220
UK-19b convertible currencies)
(Excess inflows from a related		 – – – –
specialised credit institutions) – – – –
20 Total cash inflows 80,346 80,666 85,703 91,919 29,235 30,007 31,742 33,818
UK-20a Fully exempt inflows – – – – – – – –
UK-20b Inflows subject to 90% cap – – – – – – – –
UK-20c Inflows subject to 75% cap 73,980 74,661 78,900 84,084 29,235 30,007 31,742 33,818
Total adjusted value
21 Liquidity buffer 103,106 98,688 92,637 90,026
22
23		 Total net cash outflows
Liquidity coverage ratio (%)		 64,119
161%		 61,755
160%		 59,773
155%		 59,120
153%

Table 126: Net Stable Funding Ratio (UK LIQ2) – Solo consolidation

2025
Unweighted value by residual maturity
No maturity < 6 months 6 months to < 1yr ≥ 1yr Weighted value (aver
age)
\$million \$million \$million \$million \$million
Available stable funding (ASF) Items
1 Capital items and instruments 28,964 267 9 9,067 38,036
2 Own funds 28,964 267 9 9,067 38,036
3 Other capital instruments – – – –
4 Retail deposits 15,525 770 197 14,891
5 Stable deposits 558 21 11 560
6 Less stable deposits 14,968 750 186 14,331
7 Wholesale funding: 214,953 23,681 43,573 105,228
8 Operational deposits 39,233 – – 19,616
9 Other wholesale funding 175,720 23,681 43,573 85,612
10 Interdependent liabilities 4,357 200 159 –
11 Other liabilities: 134 23,655 766 373 756
12 NSFR derivative liabilities 134
13 All other liabilities and capital instruments not included in
the above categories		 23,655 766 373 756
14 Total available stable funding (ASF) 158,911
Required stable funding (RSF) Items
15 Total high-quality liquid assets (HQLA) 3,711
UK-15a Assets encumbered for more than 12m in cover pool – – – –
16 Deposits held at other financial institutions for operational
purposes 1,384 – – 692
17 Performing loans and securities: 95,061 25,248 65,160 88,426
18 Performing securities financing transactions with financial
customers collateralised by Level 1 HQLA subject to 0%
haircut 24,124 1,254 1,575 4,477
19 Performing securities financing transactions with financial
customer collateralised by other assets and loans and
advances to financial institutions		 41,124 14,274 18,238 28,639
20 Performing loans to non-financial corporate clients, loans to
retail and small business customers, and loans to sovereigns,
and PSEs, of which:		 13,486 4,982 24,837 30,460
21 With a risk weight of less than or equal to 35% under the
Basel II Standardised Approach for credit risk		 2,748 1,643 – 2,305
22 Performing residential mortgages, of which: 230 145 2,201 1,618
23 With a risk weight of less than or equal to 35% under the
Basel II Standardised Approach for credit risk		 230 145 2,201 1,618
24 Other loans and securities that are not in default and do not
qualify as HQLA, including exchange-traded equities and
trade finance on-balance sheet products		 16,097 4,592 18,308 23,230
25 Interdependent assets – – 4,716 –
26 Other assets: – 29,563 1,989 30,360 31,978
27 Physical traded commodities 3,452 2,934
28 Assets posted as initial margin for derivative contracts and
contributions to default funds of CCPs		 412 8 9,501 8,433
29 NSFR derivative assets 119 – – 119
30 NSFR derivative liabilities before deduction of variation
margin posted		 13,481 – – 674
31 All other assets not included in the above categories 15,552 1,981 17,406 19,818
32 Off-balance sheet items 58,912 27,759 64,150 4,724
33 Total RSF 129,531
34 Net Stable Funding Ratio (%) 122.7%

Table 126: Net Stable Funding Ratio (UK LIQ2) – Solo consolidation continued

2024
Unweighted value by residual maturity
No maturity
\$million		 < 6 months
\$million		 6 months to < 1yr
\$million		 ≥ 1yr
\$million		 Weighted value
(average)
\$million
Available stable funding (ASF) Items
1 Capital items and instruments 28,457 771 1,044 9,349 38,327
2 Own funds 28,457 771 1,044 9,349 38,327
3 Other capital instruments – – – –
4 Retail deposits 11,618 1,419 945 12,707
5 Stable deposits 494 69 68 603
6 Less stable deposits 11,123 1,350 878 12,104
7 Wholesale funding: 205,334 24,064 37,116 96,853
8 Operational deposits 33,626 – – 16,813
9 Other wholesale funding 171,708 24,064 37,116 80,040
10 Interdependent liabilities 3,302 123 13 –
11 Other liabilities: 266 22,686 367 618 802
12 NSFR derivative liabilities 266
13 All other liabilities and capital instruments not included in
the above categories		 22,686 367 618 802
14 Total available stable funding (ASF) 148,690
Required stable funding (RSF) Items
15 Total high-quality liquid assets (HQLA) 4,173
UK-15a Assets encumbered for more than 12m in cover pool – – – –
16 Deposits held at other financial institutions for operational
purposes		 1,028 – – 514
17 Performing loans and securities: 105,046 26,635 57,981 86,348
18 Performing securities financing transactions with financial
customers collateralised by Level 1 HQLA subject to 0%
haircut		 20,656 920 1,913 3,859
19 Performing securities financing transactions with financial
customer collateralised by other assets and loans and
advances to financial institutions		 48,466 13,751 13,476 25,400
20 Performing loans to non-financial corporate clients, loans to
retail and small business customers, and loans to sovereigns,
and PSEs, of which:		 14,155 5,154 22,420 28,941
21 With a risk weight of less than or equal to 35% under the
Basel II Standardised Approach for credit risk		 938 1,184 – 1,131
22 Performing residential mortgages, of which: 683 66 1,858 1,593
23 With a risk weight of less than or equal to 35% under the
Basel II Standardised Approach for credit risk		 681 61 1,806 1,545
24 Other loans and securities that are not in default and do not
qualify as HQLA, including exchange-traded equities and
trade finance on-balance sheet products		 21,085 6,743 18,315 26,555
25 Interdependent assets – – 3,438 –
26 Other assets: – 28,906 1,055 27,891 27,419
27 Physical traded commodities 2,087 1,774
28 Assets posted as initial margin for derivative contracts and
contributions to default funds of CCPs		 – – 8,220 6,987
29 NSFR derivative assets 56 – – 56
30 NSFR derivative liabilities before deduction of variation
margin posted		 12,557 – – 628
31 All other assets not included in the above categories 16,293 1,055 17,584 17,975
32 Off-balance sheet items1 60,688 25,750 61,067 4,045
33 Total RSF 122,499
34 Net Stable Funding Ratio (%) 121.4%

1 During 2025, uncommitted facilities were included in the NSFR templates. To allow for meaningful year on year comparatives, Pillar 3 templates have been re-stated to account for this change.

2025 2024
MB
Supervisory
function
\$million		 MB
Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million		 MB
Supervisory
function
\$million		 MB
Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million
Fixed remuneration
1 Number of identified staff 10 2 13 658 10 2 16 666
2 Total fixed remuneration 5 5 24 368 4 6 33 364
3 Of which: cash-based 5 4 24 368 4 6 33 364
UK-4a Of which: shares
or equivalent
ownership interests		 – 1 – – – – – –
5 Of which: share-linked
instruments or equivalent
non-cash instruments		 – – – – – – – –
UK-5x Of which: other
instruments		 – – – – – – – –
7 Of which: other forms – – – – – – – –
Variable remuneration
9 Number of identified staff 10 2 13 658 10 2 16 666
10 Total variable remuneration – 14 62 437 – 18 46 397
11 Of which: cash-based – 4 19 215 – 2 18 200
12 Of which: deferred – – – 3 – 1 9 104
UK-13a Of which: shares
or equivalent
ownership interests		 – 10 43 222 – 16 28 197
UK-14a Of which: deferred – 10 42 220 – 16 19 106
UK-13b Of which: share-linked
instruments or equivalent
non-cash instruments		 – – – – – – – –
UK-14b Of which: deferred – – – – – – – –
UK-14x Of which: other
instruments		 – – – – – – – –
UK-14y Of which: deferred – – – – – – – –
15 Of which: other forms – – – – – – – –
16 Of which: deferred – – – – – – – –
17 Total remuneration (2 + 10) 5 19 86 805 4 24 79 761

Table 127: Remuneration awarded for the financial year – Solo consolidation (UK REM1)

Table 128: Special payments to staff whose professional activities have a material impact on institutions' risk profile (identified staff) – Solo consolidation (UK REM2)

2025
MB Supervisory
function
\$million		 MB Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million
Guaranteed variable remuneration awards
1 Guaranteed variable remuneration awards –
Number of identified staff		 – – – 4
2 Guaranteed variable remuneration awards – Total amount – – – 3
3 Of which guaranteed variable remuneration awards paid
during the financial year, that are not taken into account
in the bonus cap		 – – – –
Severance payments awarded in previous periods, that have
been paid out during the financial year
4 Severance payments awarded in previous periods,
that have been paid out during the financial year –
Number of identified staff		 – – – –
5 Severance payments awarded in previous periods, that have
been paid out during the financial year – Total amount		 – – – –
Severance payments awarded during the financial year
6 Severance payments awarded during the financial year –
Number of identified staff		 – – – –
7 Severance payments awarded during the financial year –
Total amount		 – – – –
8 Of which paid during the financial year – – – –
9 Of which deferred – – – –
10 Of which severance payments paid during the financial year,
that are not taken into account in the bonus cap		 – – – –
11 Of which highest payment that has been awarded
to a single person		 – – – –
2024
MB Supervisory
function
\$million		 MB Management
function
\$million		 Other senior
management
\$million		 Other
identified staff
\$million
Guaranteed variable remuneration awards
1 Guaranteed variable remuneration awards –
Number of identified staff		 – – – 4
2 Guaranteed variable remuneration awards – Total amount – – – 3
3 Of which guaranteed variable remuneration awards paid
during the financial year, that are not taken into account
in the bonus cap		 – – – –
Severance payments awarded in previous periods, that have
been paid out during the financial year
4 Severance payments awarded in previous periods,
that have been paid out during the financial year –
Number of identified staff		 – – – –
5 Severance payments awarded in previous periods, that have
been paid out during the financial year – Total amount		 – – – –
Severance payments awarded during the financial year
6 Severance payments awarded during the financial year –
Number of identified staff		 – – – –
7 Severance payments awarded during the financial year –
Total amount		 – – – –
8 Of which paid during the financial year – – – –
9 Of which deferred – – – –
10 Of which severance payments paid during the financial year,
that are not taken into account in the bonus cap		 – – – –
11 Of which highest payment that has been awarded
to a single person		 – – – –

Table 129: Deferred remuneration – Solo Consolidation (UK REM3)

2025
Deferred and retained remuneration Total amount
of deferred
remuneration
awarded for
previous
performance
periods
\$million		 Of which due
to vest in the
financial year
\$million		 Of which vesting
in subsequent
financial years
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in the
financial year
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in future
performance
years
\$million		 Total amount
of adjustment
during the
financial year
due to ex post
implicit
adjustments (i.e.
changes of value
of deferred
remuneration
due to the
changes of prices
of instruments)
\$million		 Total amount
of deferred
remuneration
awarded before
the financial year
actually paid out
in the financial
year
\$million		 Total of amount
of deferred
remuneration
awarded for
previous
performance
period that has
vested but is
subject to
retention periods
\$million
1 MB Supervisory function 2 1 1 – – 1 1 –
2 Cash-based – – – – – – – –
3 Shares or equivalent
ownership interests		 2 1 1 – – 1 1 –
4 Share-linked instruments or
equivalent non-cash instruments		 – – – – – – – –
5 Other instruments – – – – – – – –
6 Other forms – – – – – – – –
7 MB Management function 100 10 90 (2) – 46 8 8
8 Cash-based – – – – – – – –
9 Shares or equivalent
ownership interests		 100 10 90 (2) – 46 8 8
10 Share-linked instruments or
equivalent non-cash instruments		 – – – – – – – –
11 Other instruments – – – – – – – –
12 Other forms – – – – – – – –
13 Other senior management 227 29 198 (2) – 91 27 20
14 Cash-based 29 4 25 – – – 4 –
15 Shares or equivalent
ownership interests		 198 25 173 (2) – 91 23 20
16 Share-linked instruments or
equivalent non-cash instruments		 – – – – – – – –
17 Other instruments – – – – – – – –
18 Other forms – – – – – – – –
19 Other identified staff 1,073 268 805 – – 361 259 123
20 Cash-based 287 62 225 – – – 59 –
21 Shares or equivalent
ownership interests		 678 179 499 – – 311 173 109
22 Share-linked instruments or
equivalent non-cash instruments		 108 27 81 – – 50 27 14
23 Other instruments – – – – – – – –
24 Other forms – – – – – – – –
25 Total amount 1,402 308 1,094 (4) – 499 295 151

Table 129: Deferred remuneration – Solo consolidation (UK REM3) continued

2024
Deferred and retained remuneration Total amount
of deferred
remuneration
awarded for
previous
performance
periods
\$million		 Of which due
to vest in the
financial year
\$million		 Of which vesting
in subsequent
financial years
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in the
financial year
\$million		 Amount of
performance
adjustment made
in the financial
year to deferred
remuneration
that was due to
vest in future
performance
years
\$million		 Total amount
of adjustment
during the
financial year
due to ex post
implicit
adjustments (i.e.
changes of value
of deferred
remuneration
due to the
changes of prices
of instruments)
\$million		 Total amount
of deferred
remuneration
awarded before
the financial year
actually paid out
in the financial
year
\$million		 Total of amount
of deferred
remuneration
awarded for
previous
performance
period that has
vested but is
subject to
retention periods
\$million
1 MB Supervisory function 1 – 1 – – – – –
2 Cash-based – – – – – – – –
3 Shares or equivalent
ownership interests		 1 – 1 – – – – –
Share-linked instruments or
4 equivalent non-cash instruments – – – – – – – –
5 Other instruments – – – – – – – –
6 Other forms – – – – – – – –
7 MB Management function 44 7 37 (4) – 15 3 3
8 Cash-based – – – – – – – –
9 Shares or equivalent
ownership interests		 44 7 37 (4) – 15 3 3
10 Share-linked instruments or
equivalent non-cash instruments		 – – – – – – – –
11 Other instruments – – – – – – – –
12 Other forms – – – – – – – –
13 Other senior management 185 43 142 (9) – 50 18 11
14 Cash-based 34 6 28 – – – 4 –
15 Shares or equivalent
ownership interests		 151 37 114 (9) – 50 14 11
16 Share-linked instruments or
equivalent non-cash instruments		 – – – – – – – –
17 Other instruments – – – – – – – –
18 Other forms – – – – – – – –
19 Other identified staff 709 175 534 (3) – 154 164 63
20 Cash-based 247 58 189 – – – 55 –
21 Shares or equivalent
ownership interests		 408 104 304 (3) – 136 96 57
Share-linked instruments or
22 equivalent non-cash instruments 54 13 41 – – 18 13 6
23 Other instruments – – – – – – – –
24 Other forms – – – – – – – –
25 Total amount 939 225 714 (16) – 219 185 77
2025 2024
EUR Identified staff that
are high earners
as set out in Article
450(i) CRR
Number of employees		 Identified staff that
are high earners
as set out in Article
450(i) CRR
Number of employees
1 1,000,000 to below 1,500,000 157 164
2 1,500,000 to below 2,000,000 54 54
3 2,000,000 to below 2,500,000 33 25
4 2,500,000 to below 3,000,000 8 16
5 3,000,000 to below 3,500,000 6 10
6 3,500,000 to below 4,000,000 7 6
7 4,000,000 to below 4,500,000 2 4
8 4,500,000 to below 5,000,000 5 4
9 5,000,000 to below 6,000,000 1 2
10 6,000,000 to below 7,000,000 4 3
11 7,000,000 to below 8,000,000 1 2
12 8,000,000 to below 9,000,000 2 1
13 13,000,000 to below 14,000,000 – 1
14 14,000,000 to below 15,000,000 1 1
15 16,000,000 to below 17,000,000 1 –
Total 282 293

Table 130: Remuneration of 1 million EUR or more per year – Solo consolidation (UK REM4)

Table 131: Information on remuneration of staff whose professional activities have a material impact on institutions' risk profile (identified staff) – Solo consolidation (UK REM5)

2025
Management body remuneration Business areas
MB
Supervisory
function
\$million		 MB
Management
\$million		 Total MB
\$million		 Investment
banking
\$million		 Retail banking
\$million		 Asset
management
\$million		 Corporate
functions
\$million		 Independent
internal
control
functions
\$million		 All other
\$million		 Total
\$million
1 Total number
of identified staff		 683
2 Of which: members
of the MB		 10 2 12
3 Of which: other senior
management		 2 1 – 5 4 1
4 Of which: other
identified staff		 384 59 – 92 114 9
5 Total remuneration
of identified staff		 5 19 24 571 87 – 160 81 16
6 Of which: variable
remuneration		 – 14 14 335 51 – 86 32 9
7 Of which: fixed
remuneration		 5 5 10 236 36 – 74 49 7
2024
Management body remuneration Business areas
MB Supervisory
function
\$million		 MB
Management
\$million		 Total MB
\$million		 Investment
banking
\$million		 Retail banking
\$million		 Asset
management
\$million		 Corporate
functions
\$million		 Independent
internal
control
functions
\$million		 All other
\$million		 Total
\$million
1 Total number
of identified staff		 694
2 Of which: members
of the MB		 10 2 12
3 Of which: other senior
management		 3 1 – 8 3 1
4 Of which: other
identified staff		 365 52 2 120 114 13
5 Total remuneration
of identified staff		 4 24 28 501 74 2 197 79 15
6 Of which: variable
remuneration		 – 18 18 282 43 – 98 31 7
7 Of which: fixed
remuneration		 4 6 10 219 31 2 98 48 8

Table 132: Overview of RWA – Significant Subsidiaries

2025
Standard Chartered – Solo
consolidation		 Standard Chartered
Bank (HK) Ltd1		 Standard Chartered
Bank Korea Ltd		 Standard Chartered Bank
(Singapore) Ltd
Risk weighted
assets		 Regulatory
capital
requirement		 Risk weighted
assets		 Regulatory
capital
requirement		 Risk weighted
assets		 Regulatory
capital
requirement		 Risk weighted
assets		 Regulatory
capital
requirement
\$million \$million \$million \$million \$million \$million \$million \$million
Local Regulator PRA HKMA FSS MAS
Credit risk (excluding CCR)2 65,489 5,239 66,944 5,356 13,997 1,120 24,495 1,960
Of which the standardised
approach 13,796 1,104 5,427 434 4,977 398 14,896 1,192
Of which slotting approach 2,842 227 3,431 275 – – – –
Of which the advanced IRB (AIRB)
approach 48,851 3,908 23,340 1,867 9,020 722 – –
Of which the foundation IRB
(FIRB) approach – – 34,746 2,780 – – 9,599 768
Counterparty credit risk – CCR3 16,773 1,342 8,603 687 4,023 321 3,677 294
Of which the standardised
approach 2,891 231 4,492 359 2,753 220 1,467 117
Of which internal model method
(IMM)		 7,840 627 – – – – – –
Of which exposures to a CCP 1,022 82 – – 5 – – –
Of which credit valuation
adjustment – CVA 1,639 131 3,317 265 1,265 101 1,666 133
Of which other CCR 3,382 271 794 63 – – 544 44
Settlement risk – – – – – – – –
Securitisation exposures in the
banking book 3,429 274 1,094 87 – – 286 23
Of which SEC-IRBA approach 1,722 138 – – – – 49 4
Of which SEC-ERBA (including
IAA)		 929 74 934 75 – – 211 17
Of which SEC-SA approach 779 62 160 13 – – 26 2
Of which 1250%/deduction – – – – – – – –
Position, foreign exchange and
commodities risks (Market risk) 22,466 1,797 13,032 1,043 1,099 88 9,218 737
Of which the standardised
approach 10,859 869 13,032 1,043 1,099 88 9,218 737
Of which IMA 11,607 929 – – – – – –
Large exposures – – – – – – – –
Operational risk 15,632 1,251 12,348 988 2,560 205 5,587 447
Of which standardised approach 15,632 1,251 12,348 988 2,560 205 5,587 447
Amounts below the thresholds
for deduction (subject to 250%
risk weight) 6,819 546 2,874 230 1 – 4 –
Floor Adjustment – – – – – – – –
Total 130,608 10,449 104,896 8,392 21,680 1,734 51,348 3,328

1 Standard Chartered Bank (Hong Kong) Ltd follows local disclosure rules for the OV1 table above, the net impact is \$(47) million. Total RWA: \$104,896 million (\$104,849 million + \$(47) million).

2 Credit risk (including counterparty credit risk) includes Non-credit obligation assets.

3 Counterparty credit risk includes assets which are assessed under both IRB and Standardised approaches.

Table 132: Overview of RWA – Significant Subsidiaries continued

2024
Standard Chartered –
Solo consolidation		 Standard Chartered
Bank (HK) Ltd4		 Standard Chartered
Bank Korea Ltd		 Standard Chartered Bank
(Singapore) Ltd
Risk weighted
assets
\$million		 Regulatory
capital
requirement
\$million		 Risk weighted
assets
\$million		 Regulatory
capital
requirement
\$million		 Risk weighted
assets
\$million		 Regulatory
capital
requirement
\$million		 Risk weighted
assets
\$million		 Regulatory
capital
requirement
\$million
Local Regulator PRA HKMA FSS MAS
Credit risk (excluding CCR)2 65,425 5,234 67,255 5,380 13,097 1,048 32,632 2,610
Of which the standardised
approach 11,425 914 4,722 378 4,372 350 13,687 1,095
Of which slotting approach 2,313 185 4,204 336 – – – –
Of which the advanced IRB (AIRB)
approach 51,688 4,135 – 8,725 698 8,273 662
Of which the foundation IRB
(FIRB) approach – – 58,329 4,666 – – 10,672 854
Counterparty credit risk – CCR3 15,638 1,251 8,694 696 4,762 380 1,686 135
Of which the standardised
approach 2,435 195 5,467 437 3,317 265 1,607 129
Of which internal model method
(IMM)		 7,798 624 – – – – – –
Of which exposures to a CCP 717 57 – – 5 – – –
Of which credit valuation
adjustment – CVA 1,824 146 2,560 205 1,440 115 856 68
Of which other CCR 2,864 229 666 53 – – 80 6
Settlement risk – – 1 – – – – –
Securitisation exposures in the
banking book 3,712 297 783 63 – – 155 12
Of which SEC-IRBA approach 1,671 134 140 11 – – – –
Of which SEC-ERBA (including
IAA)		 1,599 128 538 43 – – 143 11
Of which SEC-SA approach 442 35 105 8 – – 12 1
Of which 1250%/deduction – – – – – – – –
Position, foreign exchange and
commodities risks (Market risk)		 21,914 1,753 13,110 1,049 945 76 5,140 411
Of which the standardised
approach 7,905 632 5,253 420 945 76 5,140 411
Of which IMA 14,008 1,121 7,857 629 – – – –
Large exposures – – – – – – – –
Operational risk 14,258 1,141 13,868 1,109 1,957 157 4,998 400
Of which standardised approach 14,258 1,141 13,868 1,109 1,957 157 4,998 400
Amounts below the thresholds
for deduction (subject to 250%
risk weight) 5,427 434 2,093 167 64 5 – –
Floor Adjustment – – – – – – – –
Total 126,375 10,110 105,803 8,464 20,826 1,666 45,468 3,569

1 Standard Chartered Bank (Hong Kong) Ltd follows local disclosure rules for the OV1 table above, the net impact is \$2,284 million. Total RWA: \$105,803 million (\$109,927 million + (4,124) million).

2 Credit risk (including counterparty credit risk) includes Non-credit obligation assets.

3 Counterparty credit risk includes assets which are assessed under both IRB and Standardised approaches.

4 2024 has been re-presented to show Standard Chartered Bank (HK) Ltd on a consolidated basis. This also includes Standard Chartered Bank Korea Ltd.

2025 2024
Capital and total exposures Standard
Chartered
– Solo
consolidation
\$million		 Standard
Chartered Bank
(HK) Ltd
\$million		 Standard
Chartered Bank
Korea Ltd
\$million		 Standard
Chartered Bank
(Singapore) Ltd
\$million		 Standard
Chartered
– Solo
consolidation
\$million		 Standard
Chartered Bank
(HK) Ltd2
\$million		 Standard
Chartered Bank
Korea Ltd1
\$million		 Standard
Chartered Bank
(Singapore)
Ltd1
\$million
Tier 1 capital 18,678 24,691 3,597 8,237 19,003 22,422 3,550 8,125
Total leverage ratio
exposures		 448,330 381,427 64,684 176,923 421,778 337,126 55,578 154,989
Leverage ratio 4.2% 6.5% 5.6% 4.7% 4.5% 6.7% 6.4% 5.2%

Table 133: Leverage ratio common disclosure – Significant Subsidiaries

1 2024 has been re-presented to align with local regulatory returns, which included late adjustments for Standard Chartered Bank Korea Ltd and Standard Chartered Bank (Singapore) Ltd.

2 2024 has been re-presented to show Standard Chartered Bank (HK) Ltd on a consolidated basis. This also includes Standard Chartered Bank Korea Ltd.

Table 134: Market risk regulatory capital requirements for significant subsidiaries

2025 2024
Market Risk regulatory capital
Requirements for Trading Book		 Standard
Chartered
– Solo
consolidation
\$million		 Standard
Chartered Bank
(HK) Ltd
\$million		 Standard
Chartered Bank
Korea Ltd
\$million		 Standard
Chartered Bank
(Singapore) Ltd
\$million		 Standard
Chartered
– Solo
consolidation
\$million		 Standard
Chartered Bank
(HK) Ltd1
\$million		 Standard
Chartered Bank
Korea Ltd
\$million		 Standard
Chartered Bank
(Singapore) Ltd
\$million
Local Regulators PRA HKMA FSS MAS PRA HKMA FSS MAS
Interest rate 606 660 81 248 385 208 65 99
Equity 7 2 – – 1 – – –
Options 5 206 4 5 4 163 3 9
Commodity 38 26 – 1 37 34 – 7
Foreign exchange 212 148 3 481 205 15 8 296
Internal Models Approach 929 – – – 1,121 629 – –
Total 1,797 1,043 88 735 1,753 1,049 76 411
Market Risk – RWA 22,466 13,032 1,100 9,182 21,914 13,110 945 5,138

1 2024 has been re-presented to show Standard Chartered Bank (HK) Ltd on a consolidated basis. This also includes Standard Chartered Bank Korea Ltd.

Acronyms

ABS Asset Backed Securities IRB Internal Ratings Based
AIRB Advanced Internal Rating Based approach IRC Incremental Risk Charge
ALCO Asset and Liability Committee IRR Interest Rate Risk
ALM Asset and Liability Management LCR Liquidity Coverage Ratio
AT1 Additional Tier 1 LGD Loss Given Default
BCBS Basel Committee on Banking Supervision MAC Model Assessment Committee
BOU Bank of Uganda MAS Monetary Authority of Singapore
BRC Board Risk Committee MDB Multilateral Development Banks
CCF Credit Conversion Factor MR Market Risk
CCP Central Counterparty MREL Minimum requirements for own funds and eligible
CCR Counterparty Credit Risk liabilities
CCyB Countercyclical capital buffer MTM Mark-To-Market
CDOs Collateralised Debt Obligations NII Net Interest Income
CDS Credit Default Swap NSFR Net Stable Funding Ratio
CET1 Common Equity Tier 1 O-SII Other Systemically Important Institution
CMBS Commercial Mortgage Backed Securities OBSC Operational Balance Sheet Committee
CQS Credit Quality Step OTC Over the counter
CPM Credit & Portfolio Management PD Probability of Default
CRD Capital Requirements Directive PFE Potential Future Exposure
CRM Credit Risk Mitigation PIT Point in Time
CRO Chief Risk Officer PM Portfolio Management
CRR Capital Requirements Regulation PRA Prudential Regulation Authority
CSA Credit Support Annex PV01 Present Value 01
CSDG Capital Structuring & Distribution Group PVA Prudent Valuation Adjustment
CVA Credit Valuation Adjustment QCCP Qualifying Central Counterparty
D-SIB Domestic Systemically Important Bank QRRE Qualifying Revolving Retail Exposure
DVA Debit Valuation Adjustment RMB Renminbi
EAD Exposure at default RMBS Residential Mortgage Backed Securities
EBA European Banking Authority RNIV Risk not in VaR
ECAI External Credit Assessment Institutions RTS Regulatory Technical Standards
EL Expected loss RWAs Risk-Weighted Assets
FCA Financial Conduct Authority SA Standardised Approach
FIRB Foundation Internal Ratings Based approach SFT Securities Financing Transactions
FPC Financial Policy Committee SIF Significant Influence Function
FSB Financial Stability Board SME Small and Medium – sized Enterprise
FSS Financial Supervisory Service (South Korea) SPE Special Purpose Entity
FVA Funding valuation adjustments SVAR Stressed VaR
GCRO Group Chief Risk Officer T1 Tier 1 capital
G-SIB Global Systemically Important Bank T2 Tier 2 capital
G-SII Global Systemically Important Institutions TC Total capital
HKMA Hong Kong Monetary Authority TLAC Total loss-absorbing capacity
IAS International Accounting Standard TM Treasury Markets
ICAAP Internal Capital Adequacy Assessment Process TRS Total Return Swap
ILAAP Internal Liquidity Adequacy Assessment Process TTC Through the cycle
IFRS International Financial Reporting Standards VaR Value at Risk
IMA Internal Model Approach VBC Valuation and Benchmarks Committee
IMM Internal model Method XVA Credit and Funding Valuation Adjustment

Glossary

Additional Tier 1 (AT1) capital Additional Tier 1 capital consists of instruments issued by the bank and related share premium
other than Common Equity Tier 1 that meet the Capital Requirement Regulation (CRR) criteria
for inclusion in Tier 1 capital.
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.
Africa & Middle East (AME) Africa & Middle East (AME) includes Bahrain, Egypt, Iraq, Jordan, Lebanon, Oman, Pakistan,
Qatar, Saudi Arabia and the United Arab Emirates (UAE).
Arrears A debt or other financial obligation is considered to be in a state of arrears when payments are
overdue. Loans and advances are considered to be delinquent when consecutive payments are
missed. Also known as 'delinquency'.
Available-for-Sale Non-derivative financial assets that are designated as available-for-sale or are not classified as
loans and receivables; held to maturity investments, or financial assets at fair value through
profit or loss.
ASEAN Association of South East Asian Nations (ASEAN) which includes the Group's operation in
Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
ASEAN & South Asia (ASA) ASEAN & South Asia (ASA) includes Australia, Bangladesh, Brunei, Cambodia, India, Indonesia,
Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
Asset Backed
Securities (ABS)		 Securities that represent an interest in an underlying pool of referenced assets. The referenced
pool can comprise any assets which attract a set of associated cash flows but are commonly
pools of residential or commercial mortgages and in the case of Collateralised Debt
Obligations (CDOs), the reference pool may be ABS.
Attributable profit
to ordinary shareholders		 Profit for the year after non-controlling interests and the declaration of dividends on preference
shares classified as equity.
Backtesting A statistical technique used to monitor and assess the accuracy of a model, and how that
model would have performed had it been applied in the past.
Basel II The capital adequacy framework issued by the Basel Committee on Banking Supervision
(BCBS) in June 2006 in the form of the 'International Convergence of Capital Measurement and
Capital Standards'.
Basel III In December 2010, the BCBS issued the Basel III rules text, which were updated in June 2011, and
represents the details of strengthened global regulatory standards on bank capital adequacy
and liquidity. The new requirements have been fully implemented. In December 2017, the BCBS
published a document setting out the finalisation of the Basel III framework. The new
requirements issued in December 2017 will be implemented by 2023.
Basis point (bps) One hundredth of a per cent (0.01 per cent); 100 basis points is 1 per cent. Used in quoting
movements e.g. in interest rates or yields on securities.
Capital
conservation
buffer		 A capital buffer prescribed by regulators under Basel III and designed to ensure banks build up
capital buffers outside periods of stress which can be drawn down as losses are incurred.
Should a bank's CET1 capital fall within the capital conservation buffer range, capital
distributions will be constrained by the regulators.
Capital
Requirements Directive (CRD)		 A capital adequacy legislative package adopted by EU member states. CRD IV comprises the
recast Capital Requirements Directive and the Capital Requirements Regulation (CRR). The
package implements the Basel III framework together with transitional arrangements for some
of its requirements. CRD IV came into force on 1 January 2014.
CRR II and CRD V amending the existing package came into force in June 2019 with most
changes starting to apply from 28 June 2021.
Central Counterparty
(CCP)		 A CCP is a clearing house that acts as an intermediary between counterparties for certain
products that are traded in one or more financial markets.
Common Equity Tier 1
(CET1) capital		 Common Equity Tier 1 capital consists of the common shares issued by the bank and related
share premium, retained earnings, accumulated other comprehensive income and other
disclosed reserves, eligible non-controlling interests and regulatory adjustments required in the
calculation of Common Equity Tier 1.
Common Equity Tier 1
ratio		 Common Equity Tier 1 capital as a percentage of risk-weighted assets.
Countercyclical
capital buffer (CCyB)		 The countercyclical capital buffer is part of a set of macroprudential instruments, designed to
help counter pro-cyclicality in the financial system. CCyB as defined in the Basel III standard
provides for an additional capital requirement of up to 2.5 per cent of risk-weighted assets in a
given jurisdiction. The Bank of England's Financial Policy Committee has the power to set CCyB
rate for the United Kingdom. Each bank must calculate its 'institution-specific' CCyB rate,
defined as the weighted average of the CCyB rates in effect across the jurisdictions in which it
has credit exposures. The institution-specific CCyB rate is then applied to a bank's total risk
weighted assets.
Counterparty credit
risk (CCR)		 The risk that a counterparty defaults before satisfying its obligations under a derivative,
a securities financing transaction (SFT) or a similar contract.
Credit Conversion Factor (CCF) Either prescribed by CRR or modelled by the bank, an estimate of the amount the Group
expects a customer to have drawn further on a facility limit at the point of default.
Credit Default
Swap (CDS)		 A derivative contract where a buyer pays a fee to a seller in return for receiving a payment in
the event of a credit event (for example bankruptcy, payment default on a reference asset or
assets, or downgrades by an rating agency) on an underlying obligation.
Credit quality
step (CQS)		 Credit Quality Steps (CQS) are used to derive the risk-weight to be applied to exposures treated
under the Standardised approach to credit risk.
Credit risk Credit risk is the potential for loss due to the failure of a counterparty to meet its obligations to
pay the Group in accordance with agreed terms.
Credit risk
mitigation (CRM)		 Credit risk mitigation is a process to mitigate potential credit losses from any given account,
customer or portfolio by using a range of tools such as collateral, netting agreements, credit
insurance, credit derivatives and guarantees.
Credit support
annex (CSA)		 A legal document that regulates the exchange of collateral between the parties of OTC
derivative transactions.
Credit Valuation
Adjustment
(CVA)		 In the context of prudential requirements, additional regulatory capital charge that covers the
risk of mark-to-market losses associated with changes in the credit worthiness of counterparties
to derivative transactions.
Debit Valuation
Adjustment
(DVA)		 In the context of prudential requirements, adjustment required to Tier 1 capital to derecognise
any unrealised fair value gains and losses associated with fair valued liabilities that are
attributable to the market's perception of the Group's credit worthiness.
Domestic
systemically
important
banks (D-SIB)		 Domestic systemically important banks are deemed systemically relevant for the domestic
financial system in which they operate. The FSB and the BCBS have developed a framework for
identifying and dealing with D-SIBs. The D-SIB framework has been implemented in the EU via
CRD IV which refers to D-SIBs as Other Systemically Important Institutions ('O-SIIs').
Equity price risk The financial risk involved in holding equity in a particular investment. Arises from changes in
the prices of equities, equity indices, equity baskets and implied volatilities on related options.
Expected Loss (EL) The Group measure of anticipated 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 anticipated loss based on Probability of Default (PD), Loss Given Default (LGD) and
Exposure at Default (EAD), with a one-year time horizon.
Exposure Credit exposures represent the amount lent to a customer, together with any undrawn
commitment.
Exposure at
default (EAD)		 The estimation of the extent to which 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 principal, so that exposure is
typically less than the approved loan limit.
External Credit
Assessment
Institutions (ECAI)		 For the Standardised Approach to credit risk for sovereigns, corporates and institutions, external
ratings are used to assign risk-weights. These external ratings must come from credit rating
agencies that are registered or certified in accordance with the credit rating agencies (CRA)
regulation or from a central bank issuing credit ratings which is exempt from the application
this regulation.
Fair value The value of an asset or liability when it is transacted on an arm's length basis between
knowledgeable and willing parties.
Financial Policy
Committee (FPC)		 The Financial Policy Committee is an independent committee at the Bank of England that has
the primary objective of identifying, monitoring and taking action to remove or reduce systemic
risks with a view to protecting and enhancing the resilience of the UK financial system. The
FPC's secondary objective is to support the economic policy of the Government.
Foreseeable
dividends net
of scrip		 Includes both ordinary and preference share dividends reasonably expected to be paid out of
any future residual interim or year-end profits. In the case of ordinary dividends, the amount of
foreseeable dividends deducted from the interim or year-end profits is equal to the amount of
interim or year-end profits multiplied by the dividend payout ratio. In the case of preference
share dividends, the amount of foreseeable dividends is equal to the amount accrued during
the relevant reporting period payable at a future date.
Foundation Internal Ratings
Based (FIRB) Approach		 A method of calculating credit risk capital requirements using internal PD models but with
supervisory estimates of LGD and conversion factors for the calculation of EAD.
Free delivery When a bank takes receipt of a debt or equity security, a commodity or foreign exchange
without making immediate payment, or where a bank delivers a debt or equity security, a
commodity or foreign exchange without receiving immediate payment.
Funding valuation adjustments
(FVA)		 FVA reflects an adjustment to fair value in respect of derivative contracts associated with the
funding costs that the market participant would incorporate when determining an exit price.
Greater China Greater China includes the Group's operation in the People's Republic of China, the Hong Kong
Special Administrative Region of the People's Republic of China and Taiwan.
Greater China & North Asia (GCNA) Greater China & North Asia (GCNA) includes China, Hong Kong, Japan, Korea, Macau and
Taiwan.
Global Systemically
Important
Bank (G-SIB)		 Global financial institutions whose size, complexity and systemic interconnectedness mean that
their distress or failure would cause significant disruption to the wider financial system and
economic activity. The Financial Stability Board (FSB) and the Basel Committee on Banking
Supervision (BCBS) have established a methodology to identify G-SIBs based on 12 principal
indicators. The list of G-SIBs is re-assessed through annual re-scoring of banks and a triennial
review of the methodology. The G-SIB framework established by the FSB and the BCBS is
implemented in the EU via CRD IV and G-SIBs are referred to as Global Systemically Important
Institutions ('G-SIIs').
G-SIB buffer A CET1 capital buffer which results from designation as a G-SIB. The G-SIB buffer is between 1
per cent and 3.5 per cent, dependent on the allocation to one of five buckets based on the
annual scoring. In the EU, the G-SIB buffer is implemented via CRD IV as Global Systemically
Important Institutions ('G-SII') buffer requirement.
Haircut A haircut, or volatility adjustment, ensures the value of exposures and collateral are adjusted to
account for the volatility caused by foreign exchange or maturity mismatches, when the
currency and maturity of an exposure differ materially to the currency and maturity of the
associated collateral.
Held-to-maturity Held-to-maturity assets are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Group's management has the intention and ability to
hold to maturity.
Impaired loans Loans where individually identified impairment provisions have been raised. Also includes loans
which are collateralised or where indebtedness has already been written down to the expected
realisable value. The impaired loan category may include loans, which, while impaired, are still
performing.
Individually assessed
loan impairment
provisions (IIP)		 Impairment is measured for assets that are individually significant to the Group. Typically assets
within the Corporate & Institutional Banking segment of the Group are assessed individually.
Individual capital
guidance		 Guidance given by the PRA to the Group about the amount and quality of capital resources to
maintain.
Individual impairment
charge		 The amount of individually assessed loan impairment provisions that are charged to the
income statement in the reporting period.
Individual liquidity
guidance		 Guidance given by the PRA to the Group about the amount, quality and funding profile of
liquidity resources to maintain.
Institution A credit institution or an investment firm as defined under the Capital Requirement Regulation
(CRR).
Internal Capital
Adequacy Assessment Process
(ICAAP)		 A requirement on institutions under Pillar 2 of the Basel framework to undertake a
comprehensive assessment of their risks and to determine the appropriate amounts of capital
to be held against these risks.
Internal Liquidity Adequacy
Assessment Process (ILAAP)		 A requirement on institutions under Pillar 2 of the Basel framework to undertake a
comprehensive assessment of their risks and to determine the appropriate amounts of liquidity
to be held against these risks.
Internal Model
Approach (IMA)		 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 IV/CRR.
Internal Model
Method (IMM)		 One of three approaches defined in the Basel Framework to determine exposure values for
counterparty credit risk.
Interest Rate Risk
(IRR)		 Interest rate risk arises due to the investment into rate-sensitive assets, as well as from
mismatches between debt issuance and placements.
Internal ratings
based approach
('IRB')		 Risk-weighting methodology in accordance with the Basel Capital Accord where capital
requirements are based on a firm's own estimates of prudential parameters.
Items belonging
to regulatory
high-risk categories		 In relation to the Standardised Approach to credit risk, items which attract a risk-weight of 150
per cent. This includes exposures arising from venture capital business and certain positions in
collective investment schemes.
Leverage ratio A ratio introduced under Basel III / CRD IV that compares Tier 1 capital to total exposures,
including certain exposures held off-balance sheet as adjusted by stipulated credit conversion
factors. Intended to be a simple, non-risk based backstop measure.
Liquidity Coverage Ratio (LCR) The ratio of the stock of high quality liquid assets to expected net cash outflows over the
following 30 days. High quality liquid assets should be unencumbered, liquid in markets during
a time of stress and, ideally, be central bank eligible.
Loans and advances 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.
Loss Given Default (LGD) The percentage of an exposure that a lender expects to lose in the event of obligor default.
Mark-to-market
approach		 One of the approaches available to banks to calculate the exposure value associated with
derivative transactions. The approach calculates the current replacement cost of derivative
contracts, by determining the market value of the contract and considering any potential future
exposure.
Market risk The potential for loss of earnings or economic value due to adverse changes in financial market
rates or prices.
Maturity The time from the reporting date to the contractual maturity date of an exposure, capped at
five years. Maturity is considered as part of the calculation of risk-weights for the Group's
exposures treated under the IRB approach to credit risk.
Minimum capital
requirement		 Minimum capital required to be held for credit, market and operational risk.
Model validation The process of assessing how well a model performs using a predefined set of criteria including
the discriminatory power of the model, the appropriateness of the inputs, and expert opinion.
MREL or minimum requirement
for own fund and eligible
liabilities		 A requirement under the Bank Recovery and Resolution Directive for EU resolution authorities to
set a minimum requirement for own funds and eligible liabilities for banks, implementing the
FSB's Total Loss-Absorbing Capacity (TLAC) standard. MREL is intended to ensure there is
sufficient equity and specific types of liabilities to facilitate an orderly resolution that minimises
any impact on financial stability and ensures the continuity of critical functions and avoids
exposing taxpayers to loss.
Multilateral Development Banks
(MDB)		 An institution created by a group of countries to provide financing for the purpose of
development. Under the Standardised approach to credit risk, eligible multilateral development
banks attract a zero per cent risk-weight.
Net stable funding ratio (NSFR) 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 liquidity measure designed to restrain the
amount of wholesale borrowing and encourage stable funding over a one year time horizon.
North East (NE) Asia North East (NE) Asia includes the Group's operation in the Republic of Korea and Japan.
Operational risk The potential for loss arising from the failure of people, process, or technology, or the impact of
external events.
Over-the-Counter (OTC) traded
products/OTC derivatives		 A bilateral transaction that is not exchange traded and is valued using valuation models.
Pillar 1 The first Pillar of the three pillars of Basel framework which provides the approach to the
calculation of the minimum capital requirements for credit, market and operational risk.
Minimum capital requirements are 8 per cent of the Group's risk-weighted assets.
Pillar 2 The second pillar of the three pillars of 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 mitigants are not available.
Pillar 3 The third pillar of the three pillars of Basel framework which aims to provide a consistent and
comprehensive disclosure framework that enhances comparability between banks and further
promotes improvements in risk practices.
Point in time (PIT) Considers the economic conditions at the point in the economic cycle at which default occurs
when estimating the probability of default.
Portfolio Impairment Provision (PIP) The amount of loan impairment provisions assessed on the collective portfolio that are charged
to the income statement in the reporting period.
Potential Future Exposure (PFE) An estimate of the potential increase in exposure that may arise on a derivative contract prior
to default, used to derive the exposure amount.
Probability of Default (PD) PD is an internal estimate for each borrower grade of the likelihood that an obligor will default
on an obligation within 12 months.
Present Value 01 (PV01) This represents the change in present value of an asset or liability for a 1 basis point change in
the nominal yield curve.
Prudential Regulatory Authority
(PRA)		 The Prudential Regulation Authority is the statutory body responsible for the prudential
supervision of banks, building societies, credit unions, insurers and a small number of significant
investment firms in the UK. The PRA is a part of the Bank of England.
Prudent Valuation Adjustment
(PVA)		 An adjustment to CET1 capital, to reflect the difference between the accounting fair value and
the regulatory prudent value of positions, where the application of prudence results in a lower
absolute carrying value than recognised in the financial statements.
Qualifying Central Counterparty
(QCCP)		 Central counterparty that is either authorised (when established in the EU) or recognised (when
established in a third-country) in accordance with the rules laid down in the European Market
Infrastructure Regulation (EMIR).
Qualifying Revolving Retail
Exposure (QRRE)		 Retail IRB exposures that are revolving, unsecured, and, to the extent they are not drawn,
immediately and unconditionally cancellable, such as credit cards.
Regulatory capital Sum of Tier 1 and Tier 2 capital after regulatory adjustments.
Repurchase agreement (repo) /
reverse repurchase agreement
(reverse repo)		 A short term funding agreement which allows a borrower to sell a financial asset, such as ABS
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.
Residential Mortgage-Backed
Securities (RMBS)		 Securities that represent interests in a group of residential mortgages. Investors in these
securities have the right to cash received from future mortgage payments (interest and/or
principal).
Residual maturity The remaining maturity of a facility from the reporting date until either the contractual maturity
of the facility or the effective maturity date.
Retail Internal Ratings Based (Retail
IRB) Approach		 In accordance with the PRA handbook and CRR, the approach to calculating credit risk capital
requirements for eligible retail exposures.
Risk Appetite Risk Appetite is defined by the Group and approved by the Board. It is the maximum amount
and type of risk the Group is willing to assume in pursuit of its strategy.
Risk Capacity The maximum level of risk the Group can assume, given its current capabilities and resources,
before breaching constraints determined by capital and liquidity requirements and internal
operational capability (including but not limited to technical infrastructure, risk management
capabilities, expertise), or otherwise failing to meet the expectations of regulators and law
enforcement agencies.
Risk-weighted assets (RWA) 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 provisions.
RWA density The risk-weighted asset as a percentage of exposure at default (EAD).
Scrip dividends Dividends paid to existing shareholders in securities instead of cash payment.
Securities Financing Transactions
(SFT)		 Securities Financing Transactions are secured (i.e. collateralised) transactions that involve the
temporary exchange of cash against securities, or securities against other securities, e.g. stock
lending or stock borrowing or the lending or borrowing of other financial instruments, a
repurchase or reverse repurchase transaction, or a buy-sell back or sell-buy back transaction.
Securitisation Securitisation is a process by which credit exposures are aggregated into a pool, which is used
to back new securities. Under traditional securitisation transactions, assets are sold to a special
purpose entity (SPE) who then issues new securities to investors at different level of seniority
(credit tranching). This allows the credit quality of the assets to be separated from the credit
rating of the originating institution and transfers risk to external investors in a way that meets
their risk appetite. Under synthetic securitisation transactions, the transfer of risk is achieved by
the use of credit derivatives or guarantees, and the exposures being securitized remain
exposures of the originating institution.
Securitisation position(s) The positions assumed by the Group following the purchase of securities issued by Asset
Backed Securitisation programmes or those retained following the origination of a
securitisation programme.
Specialised lending Specialised lending exposures are defined as an exposure to an entity which was created
specifically to finance and/or operate physical assets, where the contractual arrangements
given the lender a substantial degree of control over the assets and the income that they
generate and the primary source of repayment of the obligation is the income generated by
the assets being financed, rather than the independent capacity of a broader commercial
enterprise.
Special Purpose Entities (SPEs) SPEs are entities that are created to accomplish a narrow and well defined objective. There are
often specific restrictions or limits around their ongoing activities. Transactions with SPEs take a
number of forms, including: the provision of financing to fund asset purchases, or commitments
to provide financing for future purchases; derivative transactions to provide investors in the SPE
with a specified exposure; the provision of liquidity or backstop facilities which may be drawn
upon if the SPE experiences future funding difficulties; and direct investment in the notes or
equity issued by SPEs.
Standardised Approach (SA) In relation to credit risk, a method for calculating credit risk capital requirements using External
Credit Assessment Institutions (ECAI) ratings and supervisory risk-weights. In relation to
operational risk, a method of calculating the operational risk capital requirement by the
application of a supervisory defined percentage charge to the gross income of eight specified
business lines.
Stressed Value at
Risk (SVAR)		 A regulatory market risk measure based on potential market movements for a continuous
one-year period of stress for a trading portfolio.
Through the cycle
(TTC)		 Reduces the volatility in the estimation of the probability of default by considering the average
conditions over the economic cycle at the point of default, versus the point in time (PIT)
approach, which considers economic conditions at the point of the economic cycle at which
default occurs.
Tier 1 capital Tier 1 capital comprises Common Equity Tier 1 capital plus Additional Tier 1 securities and
related share premium accounts.
Tier 1 capital ratio Tier 1 capital as a percentage of risk-weighted assets.
Tier 2 capital Tier 2 capital comprises qualifying subordinated liabilities and related share premium accounts.
Total Loss An international standard for TLAC issued by the FSB, which requires G-SIBs to have sufficient
Absorbing loss-absorbing and recapitalisation capacity available in resolution, to minimise impacts on
Capacity financial stability, maintain the continuity of critical functions and avoid exposing public funds
(TLAC) to loss.
Total Return Swap
(TRS)		 A derivative transaction that swaps the total return on a financial instrument, including cash
flows and capital gains or losses, for an interest rate return.
Trading book The trading book consists of all positions in CRD financial instrument and commodities which
are fair valued through the profit and loss account for accounting purposes, which are held
either with trading intent or in order to hedge other elements of the trading book and which are
either free of any restrictive covenants on their tradability or ability to be hedged.
Value at Risk (VAR) A quantitative measure of market risk estimating the potential loss that will not be exceeded in
a set time period at a set statistical confidence level.
Write downs After an advance has been identified as impaired and is subject to an impairment allowance,
the stage may be reached whereby it is concluded that there is no realistic prospect of further
recovery. Write downs will occur when and to the extent that, the whole or part of a debt is
considered irrecoverable.
Wrong way risk Wrong way risk occurs when an exposure increase is coupled with a decrease in the credit
quality of the obligor.

CRR article ref. Requirement summary Disclosure
Scope of disclosure requirement
431 (1) Institutions shall publicly disclose the information referred
to in Titles II and III in accordance with the provisions laid
down in this Title, subject to the exceptions referred to in
Article 432.		 The Group publishes Pillar 3 disclosures
(2) Institutions that have been granted permission by the
competent authorities under Part Three for the instruments
and methodologies referred to in Title III of this Part shall
publicly disclose the information laid down therein.		 The Group applies the standardised approach, RWAs
and capital requirements for operational risk are
shown in Table 20: (OV1) on page 30 and in the 2025
Annual Reports and Accounts on page 306.
(3) The management body or senior management shall adopt
formal policies to comply with the disclosure requirements
laid down in this Part and put in place and maintain
internal processes, systems and controls to verify that the
institution's disclosures are appropriate and in compliance
with the requirements laid down in this Part. At least one
member of the management body or senior management
shall attest in writing that the relevant institution has made
the disclosures required under this Part in accordance with
the formal policies and internal processes, systems and
controls. The written attestation and the key elements of
the institution's formal policies to comply with the
disclosure requirements shall be included in the institutions'
disclosures.
Information to be disclosed in accordance with this Part
shall be subject to the same level of internal verification as		 The Group has a dedicated policy governing
prudential disclosure requirements in place.
that applicable to the management report included in the
institution's financial report.
Institutions shall also have policies in place to verify that
their disclosures convey their risk profile comprehensively to
market participants. Where institutions find that the
disclosures required under this Part do not convey the risk
profile comprehensively to market participants, they shall
publicly disclose information in addition to the information
required to be disclosed under this Part. Nonetheless,
institutions shall only be required to disclose information
that is material and not proprietary or confidential in
accordance with Article 432.
(4) All quantitative disclosures shall be accompanied by a
qualitative narrative and any other supplementary
information that may be necessary in order for the users of
that information to understand the quantitative
disclosures, noting in particular any significant change in
any given disclosure compared to the information
contained in the previous disclosures.
(5) Institutions shall, if requested, explain their rating decisions
to SMEs and other corporate applicants for loans, providing
an explanation in writing when asked. The administrative
costs of the explanation shall be proportionate to the size
of the loan.		 The Group provides ratings decisions to SMEs and
corporates upon request.
Non-material, proprietary or confidential information
432 (1) With the exception of the disclosures laid down in point (c)
of Article 435(2) and in Articles 437 and 450, institutions
may omit one or more of the disclosures listed in Titles II
and III where the information provided by those disclosures
is not regarded as material.
Information in disclosures shall be regarded as material
where its omission or misstatement could change or
influence the assessment or decision of a user of that
information relying on it for the purpose of making
economic decisions.		 Items omitted from disclosure are listed in section 1.4.
Regulatory disclosure – Framework on page 2.
CRR article ref. Requirement summary Disclosure
(2) Institutions may also omit one or more items of information
referred to in Titles II and III where those items include
information that is regarded as proprietary or confidential
in accordance with this paragraph, except for the
disclosures laid down in Articles 437 and 450.
Information shall be regarded as proprietary to institutions
where disclosing it publicly would undermine their
competitive position. Proprietary information may include
information on products or systems that would render the
investments of institutions therein less valuable, if shared
with competitors.
Information shall be regarded as confidential where the
institutions are obliged by customers or other counterparty
relationships to keep that information confidential.		 See Article 432(1) above
(3) In the exceptional cases referred to in paragraph 2, the
institution concerned shall state in its disclosures the fact
that the specific items of information are not disclosed and
the reason for not disclosing those items, and publish more
general information about the subject matter of the
disclosure requirement, except where that subject matter is,
in itself, proprietary or confidential.		 All material, non-confidential and non-proprietary
information is disclosed by the Group in its 2025 Pillar
3 and 2025 Annual Report and Accounts.
Frequency of disclosure
433 Institutions shall publish the disclosures required under
Titles II and III in the manner set out in Articles 433a, 433b
and 433c.
Annual disclosures shall be published on the same date as
the date on which institutions publish their financial
statements or as soon as possible thereafter.
Semi-annual and quarterly disclosures shall be published
on the same date as the date on which the institutions
publish their financial reports for the corresponding period
where applicable or as soon as possible thereafter.
Any delay between the date of publication of the
disclosures required under this Part and the relevant
financial statements shall be reasonable.		 Section 1.4 Regulatory disclosure – Framework
sub-section on Frequency on page 4.
Means of disclosure
434 (1) Institutions shall disclose all the information required under
Titles II and III in electronic format and in a single medium
or location. The single medium or location shall be a
standalone document that provides a readily accessible
source of prudential information for users of that
information or a distinctive section included in or appended
to the institutions' financial statements or financial reports
containing the required disclosures and being easily
identifiable to those users.		 Section 1.4 Regulatory disclosure – Framework,
sub-section on Verification on page 4.
The 2025 Pillar 3 document is made publicly available
on the Group website with the 2025 Annual Report
and Accounts and other public disclosures.
(2) Institutions shall make available on their website or, in the
absence of a website, in any other appropriate location an
archive of the information required to be disclosed in
accordance with this Part. That archive shall be kept
accessible for a period of time that shall be no less than the
storage period set by national law for information included
in the institutions' financial reports.		 The Group discharges parts of the prudential
disclosure requirements in the 2025 Annual Reports
and Accounts, in Main Features and GSIB disclosures,
with cross references to exact locations provided in its
Pillar 3 document.
Risk management objectives and policies
435 (1) Institutions shall disclose their risk management objectives
and policies for each separate category of risk, including
the risks referred to in this Title. These disclosures shall
include:		 See below
(1)(a) The strategies and processes to manage those categories
of risks		 Section 1.5 Risk management on pages 4 to 5.
Risk management approach section in the 2025
Annual Report and Accounts on pages 222 to 234.
(1)(b) The structure and organisation of the relevant risk
management function including information on the
basis of its authority, its powers and accountability in
accordance with the institution's incorporation and
governing documents		 See Article 435 (1)(a) above
CRR article ref. Requirement summary Disclosure
(1)(c) The scope and nature of risk reporting and measurement
systems		 See Article 435 (1)(a) above
(1)(d) The policies for hedging and mitigating risk, and the
strategies and processes for monitoring the continuing
effectiveness of hedges and mitigants		 See Article 435 (1)(a) above
(1)(e) A declaration approved by the management body on the
adequacy of risk management arrangements of the
institution providing assurance that the risk management
systems put in place are adequate with regard to the
institution's profile and strategy
(1)(f) A concise risk statement approved by the management
body succinctly describing the relevant institution's overall
risk profile associated with the business strategy; that
statement shall include:
(i) key ratios and figures providing external stakeholders
with a comprehensive view of the institution's
management of risk, including how the risk profile of the
institution interacts with the risk tolerance set by the
management body;
(ii) information on intragroup transactions and
transactions with related parties that may have a material
impact of the risk profile of the consolidated group.		 See Article 435 (1)(a) above
Key ratios and figures are highlighted in section 1.3 on
pages 2 to 3 and in the 2025 Annual Report and
Accounts on page 12.
(2) Institutions shall disclose the following information
regarding governance arrangements:		 See below
(2)(a) The number of directorships held by members of the
management body		 2025 Annual Reports and Accounts, Board of
Directors, on page 130 to 133
(2)(b) The recruitment policy for the selection of members of the
management body and their actual knowledge, skills and
expertise		 2025 Annual Reports and Accounts, Board of
Directors, on pages 130 to 133 and Governance and
Nomination Committee on pages 176 to 181.
(2)(c) The policy on diversity with regard to selection of members
of the management body, its objectives and any relevant
targets set out in that policy, and the extent to which those
objectives and targets have been achieved		 2025 Annual Reports and Accounts, Governance and
Nomination Committee, on pages 176 to 181. Further
information published on the Group website
sc.com/boarddiversitypolicy.
(2)(d) Whether or not the institution has set up a separate risk
committee and the number of times the risk committee
has me		 2025 Annual Reports and Accounts, Corporate
Governance, on pages 116 to 122
(2)(e) The description of the information flow on risk to the
management body		 2025 Annual Reports and Accounts, Risk
management, on pages 222 to 234
Scope of application
436 Institutions shall disclose the following information
regarding the scope of application of the CRR as follows:		 See below
(a) The name of the institution to which the CRR applies. Name of the Group and the Group logo are displayed
on the cover page of the disclosures.
(b)
(c)		 A reconciliation between the consolidated financial
statements prepared in accordance with the applicable
accounting framework and the consolidated financial
statements prepared in accordance with the requirements
on regulatory consolidation pursuant to Sections 2 and 3 of
Title II of Part One; that reconciliation shall outline the
differences between the accounting and regulatory scopes
of consolidation and the legal entities included within the
regulatory scope of consolidation where it differs from the
accounting scope of consolidation; the outline of the legal
entities included within the regulatory scope of
consolidation shall describe the method of regulatory
consolidation where it is different from the accounting
consolidation method, whether those entities are fully or
proportionally consolidated and whether the holdings in
those legal entities are deducted from own funds.
A breakdown of assets and liabilities of the consolidated		 Table 3: Regulatory Consolidation on page 5.
Table 4: Outline of the differences in the scope of
consolidation (LI3) on page 6.
Table 5: Differences between accounting and
financial statements prepared in accordance with the
requirements on regulatory consolidation pursuant to
Sections 2 and 3 of Title II of Part One, broken down by type
of risks as referred to under this Part.		 regulatory scopes of consolidation and the mapping
of financial statement categories with regulatory risk
categories (UK LI1) on page 7
Table 6: Main sources of differences between
regulatory exposure amounts and carrying values in
Table 7: Prudent valuation adjustments (PVA) (UK
Table 9: Composition of regulatory own funds (UK
Table 10: Reconciliation of regulatory own funds to
balance sheet in the audited financial statements (UK
Details of the Group's capital instruments are set out
in the Group's Main Features of Capital Instruments
document available on the Group's website at
https://www.sc.com/en/investors/credit-ratings
Table 9: Composition of regulatory own funds (UK
Table 10: Reconciliation of regulatory own funds to
balance sheet in the audited financial statements (UK
There were no restrictions applied to the calculation
The Group follows own funds calculation set out in the
CRR, in the format set out by the below implementing
CRR article ref. Requirement summary Disclosure
(a) The composition of their own funds and eligible liabilities,
their maturity and their main features.		 Details of the Group's capital instruments are set out
in the Group's Main Features of Capital Instruments
document available on the Group's website at
https://www.sc.com/en/investors/credit-ratings
fixed-income/#capitalsecurities
(b) The ranking of eligible liabilities in the creditor hierarchy. Table 12: Resolution entity – creditor ranking at legal
entity level (TLAC3) on page 17
Table 13: Standard Chartered Bank – creditor ranking
(TLAC2) on page 18
Table 14: Standard Chartered Bank (Hong Kong)
Limited – creditor ranking (TLAC2) on page 19
Table 15: Standard Chartered Bank Korea Limited –
creditor ranking (TLAC2) on page 20
Table 16: Standard Chartered Bank (Singapore)
Limited – creditor ranking (TLAC2) on page 21
Table 17: Standard Chartered Bank (China) Limited –
creditor ranking (TLAC2) on page 22
(c) The total amount of each issuance of eligible liabilities
instruments referred to in Article 72b and the amount of
those issuances that is included in eligible liabilities items
within the limits specified in Article 72b(3) and (4).		 Table 12: TLAC composition for G-SIBs (TLAC1) on
page 17
(d) The total amount of excluded liabilities referred to in Article
72a(2).		 Table 12: Resolution entity – creditor ranking at legal
entity level (TLAC3) on page 17
Own Funds Requirements and Risk-Weighted Exposure Amounts
438 Institutions shall disclose the following information
regarding their compliance with Article 92 and rules 3.1(1)
(a) and 3.4 of the Internal Capital Adequacy Assessment
Part of the PRA Rulebook:		 See below
(a) A summary of their approach to assessing the adequacy of
their internal capital to support current and future activities.		 Section 2.1 Capital management on page 11
Capital planning on page 303 of the 2025 Annual
Reports and Accounts
(b) The amount of the additional own funds requirements
based on the supervisory review and evaluation process
(within the meaning of regulation 34A of the Capital
Requirements Regulations) and its composition in terms of
Common Equity Tier 1, additional Tier 1 and Tier 2
instruments.		 Table 1: Key metrics template (UK KM1) on page 2
(c) The result of the institution's internal capital adequacy
assessment process.		 Section 2.1 Capital management on page 11.
Capital planning on page 303 of the 2025 Annual
Reports and Accounts
(d) The total risk-weighted exposure amount and the
corresponding total own funds requirement determined in
accordance with Article 92, to be broken down by the
different risk categories set out in Part Three and, where
applicable, an explanation of the effect on the calculation
of own funds and risk-weighted exposure amounts that
results from applying capital floors and not deducting
items from own funds.		 Table 20: Overview of risk weighted exposure
amounts (UK OV1) on page 25
(e) The on- and off-balance-sheet exposures, the risk
weighted exposure amounts and associated expected
losses for each category of specialised lending referred to
in Table 1 of Article 153(5) and the on- and off-balance
sheet exposures and risk-weighted exposure amounts for
the categories of equity exposures set out in Article 155(2).		 Excluded on the grounds of materiality
(f) The exposure value and the risk-weighted exposure
amount of own funds instruments held in any insurance
undertaking, reinsurance undertaking or insurance holding
company that the institutions do not deduct from their own
funds in accordance with Article 49 when calculating their
capital requirements on an individual, sub-consolidated
and consolidated basis.		 Not applicable
(g) The supplementary own funds requirement and the capital
adequacy ratio of the financial conglomerate calculated in
accordance with the provisions implementing Article 6 of
Directive 2002/87/EC and Annex I to that Directive where
method 1 or 2 set out in that Annex is applied.		 Table 24: RWA flow statements of market risk
exposures under the IMA (UK MR2-B) on page 27
CRR article ref. Requirement summary Disclosure
(h) The variations in the risk-weighted exposure amounts of
the current disclosure period compared to the immediately
preceding disclosure period that result from the use of
internal models, including an outline of the key drivers
explaining those variations.		 Table 22: RWEA flow statements of credit risk
exposures under the IRB approach (UK CR8) on
page 26
Table 23: RWEA flow statements of CCR exposures
under the IMM (UK CCR7) on page 27
Exposure to counterparty credit risk
439 Institutions shall disclose the following information
regarding their exposure to counterparty credit risk as
referred to in Chapter 6 of Title II of Part Three:		 See below
(a) A description of the methodology used to assign internal
capital and credit limits for counterparty credit exposures,
including the methods to assign those limits to exposures to
central counterparties.		 Section 4.2. Counterparty credit risk on page 95
(b) A description of policies related to guarantees and other
credit risk mitigants, such as the policies for securing
collateral and establishing credit reserves.		 Section 4.2. Counterparty credit risk on page 95
(c) A description of policies with respect to General Wrong
Way risk and Specific Wrong-Way risk as defined in
Article 291.		 Section 4.2. Counterparty credit risk on page 95
(d) The amount of collateral the institution would have to
provide if its credit rating were downgraded.		 Section 4.2. Counterparty credit risk on page 95
(e) For derivative transactions, the amount of segregated and
unsegregated collateral received and posted per type of
collateral; and for securities financing transactions, the
total amount of collateral received and posted per type of
collateral; provided in each case that:
(i) institutions shall not disclose such amounts unless both
the fair value of collateral posted in the form of debt
securities and the fair value of collateral received in that
form exceed GBP 125 billion; and
(ii) for the purposes of subparagraph (i), institutions shall
use the twelve month rolling arithmetic mean of the fair
value of collateral received or posted (as the case may be)
in the form of debt securities, determined using quarterly
data calculated in a manner consistent with data reported
under Article 430(g) and covering the twelve months
immediately preceding the disclosure reference date;		 Table 86: Credit derivatives exposures (UK CCR6) on
page 98
(f) For derivative transactions, the exposure values before and
after the effect of the credit risk mitigation as determined
under the methods set out in Sections 3 to 6 of Chapter 6 of
Title II of Part Three, whichever method is applicable, and
the associated risk exposure amounts broken down by
applicable method.		 Table 84: Analysis of CCR exposure by approach
(UK CCR1) on page 97
(g) For securities financing transactions, the exposure values
before and after the effect of the credit risk mitigation as
determined under the methods set out in Chapters 4 and 6
of Title II of Part Three, whichever method is used, and the
associated risk exposure amounts broken down by
applicable method.		 Table 84: Analysis of CCR exposure by approach
(UK CCR1) on page 97
(h) The exposure values after credit risk mitigation effects and
the associated risk exposures for credit valuation
adjustment capital charge, separately for each method as
set out in Title VI of Part Three.		 Table 87: Transactions subject to own funds
requirements for CVA risk (UK CCR2) on page 98
(i) The exposure value to central counterparties and the
associated risk exposures within the scope of Section 9 of
Chapter 6 of Title II of Part Three, separately for qualifying
and non-qualifying central counterparties, and broken
down by types of exposures.		 Table 85: Exposures to CCPs (UK CCR8) on page 98
(j) The notional amounts and fair value of credit derivative
transactions; credit derivative transactions shall be broken
down by product type; within each product type, credit
derivative transactions shall be broken down further by
credit protection bought and credit protection sold.
(k) The estimate of alpha where the institution has received
the permission of the competent authorities to use its own
estimate of alpha in accordance with Article 284(9).		 Table 84: Analysis of CCR exposure by approach (UK
CCR1) on page 97
CRR article ref. Requirement summary Disclosure
(m) for institutions using the methods set out in Sections 4 to 5
of Chapter 6 of Title II Part Three, the size of their on- and
off-balance-sheet derivative business as calculated in
accordance with Article 273a(1) or (2), as applicable.		 Table 84: Analysis of CCR exposure by approach (UK
CCR1) on page 97
Countercyclical capital buffers
440 Institutions shall disclose the following information in
relation to their compliance with the requirement for a
countercyclical capital buffer referred to in regulation 2 of
the Capital Requirements (Capital Buffers and Macro
prudential Measures) Regulations 2014:		 See below
(a) The geographical distribution of the exposure amounts
and risk-weighted exposure amounts of its credit exposures
used as a basis for the calculation of their countercyclical
capital buffer.		 Table 18: Geographical distribution of credit exposures
relevant for the calculation of the countercyclical
buffer (UK CCyB1) on page 23
(b) The amount of their institution-specific countercyclical
capital buffer.		 Table 19: Amount of institution-specific countercyclical
capital buffer (UK CCyB2) on page 24
Indicators of global systemic importance
441 (1) G-SIIs shall disclose, on an annual basis, the values of the
indicators used for determining their score in accordance
with the identification methodology referred to in
regulation 23 of Part 4 of Capital Requirements (Capital
Buffers and Macro-prudential Measures) Regulations 2014.		 Discussed in Section 1.3. Regulatory disclosure
framework on page 2
Exposures to Credit Risk and Dilution Risk
442 Institutions shall disclose the following information
regarding their exposure to credit risk and dilution risk:		 See below
(a) The scope and definitions that they use for accounting
purposes of 'past due' and 'impaired' and the differences, if
any, between the definitions of 'past due' and 'default' for
accounting and regulatory purposes.		 Glossary sections of Pillar 3 and the Annual Report
and Accounts on pages 151 to 156 and 470 to 478
respectively
Credit risk section of the 2025 Annual Report and
Accounts on page 233
(b) A description of the approaches and methods adopted for
determining specific and general credit risk adjustments.		 Section 3.4. Exposure values on page 62
Note 8 of the 2025 Annual Report and Account on
pages 342 to 346
(c) Information on the amount and quality of performing,
non-performing and forborne exposures for loans, debt
securities and off-balance-sheet exposures, including their
related accumulated impairment, provisions and negative
fair value changes due to credit risk and amounts of
collateral and financial guarantees received.		 Table 44: Performing and non-performing exposures
and related provisions (UK CR1) on page 55
Table 47: Credit quality of forborne exposures (UK
CQ1) on page 57
Table 49: Quality of non-performing exposures by
geography (UK CQ4) on page 59
Table 50: Credit quality of loans and advances to
non-financial corporations by industry (UK CQ5) on
page 60
(d) An ageing analysis of accounting past due exposures. Table 48: Credit quality of performing and non
performing exposures by past due days (UK CQ3) on
page 58
(e) The gross carrying amounts of both defaulted and
non-defaulted exposures, the accumulated specific and
general credit risk adjustments, the accumulated write-offs
taken against those exposures and the net carrying
amounts and their distribution by geographical area and
industry type and for loans, debt securities and off
balance-sheet exposures.		 Table 44: Performing and non-performing exposures
and related provisions (UK CR1) on page 55
Table 47: Credit quality of forborne exposures (UK
CQ1) on page 57
Table 49: Quality of non-performing exposures by
geography (UK CQ4) on page 59
Table 50: Credit quality of loans and advances to
non-financial corporations by industry (UK CQ5) on
page 60
(f) Any changes in the gross amount of defaulted on- and
off-balance-sheet exposures, including, as a minimum,
information on the opening and closing balances of those
exposures, the gross amount of any of those exposures
reverted to non-defaulted status or subject to a write-off.		 Table 44: Performing and non-performing exposures
and related provisions (UK CR1) on page 55
Table 47: Credit quality of forborne exposures (UK
CQ1) on page 57
Table 49: Quality of non-performing exposures by
geography (UK CQ4) on page 59
Table 50: Credit quality of loans and advances to
non-financial corporations by industry (UK CQ5) on
page 60
(g) The breakdown of loans and debt securities by residual
maturity.		 Table 45: Maturity of exposures (UK CR1-A) on
page 56
CRR article ref. Requirement summary Disclosure
Encumbered and unencumbered assets
443 Institutions shall disclose information concerning their
encumbered and unencumbered assets. For those
purposes, institutions shall use the carrying amount per
exposure class broken down by asset quality and the total
amount of the carrying amount that is encumbered and
unencumbered. Disclosure of information on encumbered
and unencumbered assets shall not reveal emergency
liquidity assistance provided by central banks.		 Table 100: Encumbered and unencumbered assets
(UK AE1) on page 112
Table 101: Collateral received and own debt securities
issued (UK AE2) on page 113
Table 102: Sources of encumbrance (UK AE3) on
page 114
Use of the Standardised Approach
444 Chapter 2 of Title II of Part Three shall disclose the following
information for each of the exposure classes set out in
Article 112:		 See below
(a) The names of the nominated ECAIs and export credit
agencies and the reasons for any changes in those
nominations over the disclosure period.		 Section 3.7. standardised risk weight profile on
page 81
(b) The exposure classes for which each ECAI or export credit
agency is used.		 Section 3.7. standardised risk weight profile on
page 81
(c) A description of the process used to transfer the issuer and
issue credit ratings onto items not included in the trading
book.		 Section 3.7. standardised risk weight profile on
page 81
(d) The association of the external rating of each nominated
ECAI or export credit agency with the risk weights that
correspond to the credit quality steps as set out in Chapter
2 of Title II of Part Three taking into account that it is not
necessary to disclose that information where the
institutions comply with the standard association published
by the competent authority.		 Section 3.7. standardised risk weight profile on
page 81
(e) The exposure values and the exposure values after credit
risk mitigation associated with each credit quality step as
set out in Chapter 2 of Title II of Part Three, by exposure
class, as well as those deducted from own funds.		 Table 49: Quality of non-performing exposures by
geography (UK CQ4) on page 59
Table 50: Credit quality of loans and advances to
non-financial corporations by industry (UK CQ5) on
page 60
Exposure to market risk
445 Institutions calculating their own funds requirements in
accordance with points (b) and (c) of Article 92(3) shall
disclose those requirements separately for each risk
referred to in those provisions. In addition, own funds
requirements for the specific interest rate risk of
securitisation positions shall be disclosed separately.		 Table 78: Market risk under standardised approach
(UK MR1) on page 92
Operational risk management
446 Institutions shall disclose the following information about
their operational risk management:		 The Group applies STD approach for measuring
capital requirements, described in section 1.5. Risk
management under Operational Risk on page 4
(a) The approaches for the assessment of own funds
requirements for operational risk that the institution
qualifies for.		 Table 95: Operational risk own funds requirements
and risk-weighted exposure amounts (UK OR1) on
page 103
(b) Where the institution makes use of it, a description of
the methodology set out in Article 312(2), which shall
include a discussion of relevant internal and external
factors being considered in the institution's advanced
measurement approach.		 Not applicable
(c) In the case of partial use, the scope and coverage of the
different methodologies used.		 Not applicable
Key metrics
447 Institutions shall disclose the following key metrics in a
tabular format:		 See below
(a) The composition of their own funds and their own funds
requirements as calculated in accordance with Article 92.		 Table 1: Key metrics template (UK KM1) on page 2
(b) The total risk exposure amount as calculated in
accordance with Article 92(3).		 Table 1: Key metrics template (UK KM1) on page 2
(c) Where applicable, the amount and composition of
additional own funds which the institutions are required to
hold in accordance with regulation 34(1) of the Capital
Requirements Regulations.		 Table 1: Key metrics template (UK KM1) on page 2
CRR article ref. Requirement summary Disclosure
(d) Their combined buffer requirement which the institutions
are required to hold in accordance with regulation 35 of the
Capital Requirements (Capital Buffers and Macro
prudential Measures) Regulations 2014.		 Table 1: Key metrics template (UK KM1) on page 2
(e) The following information in relation to their leverage ratio:
(i) for all institutions, their leverage ratio and total
exposure measure;
(ii) for LREQ firms, the information in Article 451(1)(b) and
(g) and Article 451(2)(b) to (d);		 Table 1: Key metrics template (UK KM1) on page 2
(f) The following information in relation to their liquidity
coverage ratio as calculated in accordance with Chapter 2
of the Liquidity Coverage Ratio (CRR) Part of the PRA
Rulebook:
(i) the average or averages, as applicable, of their liquidity
coverage ratio based on end-of-the-month observations
over the preceding 12 months for each quarter of the
relevant disclosure period;
(ii) the average or averages, as applicable, of their total
liquid assets, after applying the relevant haircuts, included
in the liquidity buffer pursuant to the Chapter 2 of the
Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook,
based on end-of-the-month observations over the
preceding 12 months for each quarter of the relevant
disclosure period;
(iii) the averages of their liquidity outflows, inflows and net
liquidity outflows as calculated pursuant to Chapter 2 of
the Liquidity Coverage Ratio (CRR) Part of the PRA
Rulebook, based on end-of-the-month observations over
the preceding 12 months for each quarter of the relevant
disclosure period;		 Table 1: Key metrics template (UK KM1) on page 2
(g) The following information in relation to their net stable
funding requirement as calculated in accordance with Title
IV of Part Six:
(i) the average or averages, as applicable, of their net
stable funding ratio based on end-of-the-quarter
observations over the preceding four quarters, for each
quarter of the relevant disclosure period;
(ii) the average or averages, as applicable, of their
available stable funding based on end-of-the-quarter
observations over the preceding four quarters, for each
quarter of the relevant disclosure period;
(iii) the average or averages, as applicable, of their
required stable funding based on end-of-the-quarter
observations over the preceding four quarters, for each
quarter of the relevant disclosure period;		 Table 1: Key metrics template (UK KM1) on page 2
(h) Their own funds and eligible liabilities ratios and their
components, numerator and denominator, as calculated in
accordance with Articles 92a and 92b and broken down at
the level of each resolution group, where applicable.
Exposure to interest rate risk on positions not included in the trading book
448 (1) Institutions shall disclose the following quantitative and
qualitative information on the risks arising from potential
changes in interest rates that affect both the economic
value of equity and the net interest income of their
non-trading book activities referred to in in Chapter 9 of
the Internal Capital Adequacy Assessment (ICAA) Part of
the PRA Rulebook:		 See below
CRR article ref. Requirement summary Disclosure
(1)(a) The changes in the economic value of equity calculated
under the following six supervisory shock scenarios referred
to in Rule 9.7 of the ICAA Part of the PRA Rulebook for the
current and previous disclosure periods:
(i) parallel shock up;
(ii) parallel shock down;
(iii) steepener shock (short rates down and long rates up);
(iv) flattener shock (short rates up and long rates down);
(v) short rates shock up;
(vi) short rates shock down;		 Table 96: Quantitative information on IRRBB
(UK IRRBB1) on page 104.
(1)(b) The changes in the net interest income calculated under
the following two supervisory shock scenarios referred to in
Rule 9.7 of the ICAA Part of the PRA Rulebook for the
current and previous disclosure periods:
(i) parallel shock up;
(ii) parallel shock down;		 Table 96: Quantitative information on IRRBB
(UK IRRBB1) on page 104.
(1)(c) A description of key modelling and parametric assumptions
used to calculate changes in the economic value of equity
and in the net interest income required under points (a)
and (b) of this paragraph.		 Section 6 on Interest rate risk in the banking book on
pages 104 to 105.
(1)(d) An explanation of the significance of the risk measures
disclosed under points (a) and (b) of this paragraph and of
any significant variations of those risk measures since the
previous disclosure reference date.		 Section 6 on Interest rate risk in the banking book on
pages 104 to 105.
(1)(e) The description of how institutions define, measure,
mitigate and control the interest rate risk of their non
trading book activities for the purposes of the competent
authorities' review in accordance with Chapter 9 of the
ICAA Part of the PRA Rulebook, including:
(i) a description of the specific risk measures that the
institutions use to evaluate changes in their economic value
of equity and in their net interest income;
(ii) a description of the key modelling and parametric
assumptions used in the institutions' internal measurement
systems for the purpose of calculating changes in the
economic value of equity and in net interest income, as
required under points (a) and (b) of this paragraph, if those
assumptions differ from those used for the purposes of
Chapter 9 of the ICAA Part of the PRA Rulebook or from
those specified in Annex XXXVIII of Chapter 6 of this
Disclosure (CRR) Part of the PRA Rulebook, including the
rationale for those differences;
(iii) a description of the interest rate shock scenarios that
institutions use to estimate the interest rate risk;
(iv) the recognition of the effect of hedges against those
interest rate risks, including internal hedges that meet the
requirements laid down in Article 106(3);
(v) an outline of how often the evaluation of the interest
rate risk occurs;		 Section 6 on Interest rate risk in the banking book on
pages 104 to 105.
(1)(f) The description of the overall risk management and
mitigation strategies for those risks.		 Section 6 on Interest rate risk in the banking book on
pages 104 to 105.
(1)(g) Average and longest repricing maturity assigned to
non-maturing deposits.		 Section 6 on Interest rate risk in the banking book on
pages 104 to 105.
2 By way of derogation from paragraph 1 of this Article, the
requirements set out in points (c) and (e)(i) to (e)(iv) of
paragraph 1 of this Article for descriptions relating to
economic value of equity shall not apply to institutions that
use the standardised framework referred to in Rule 9.1B of
the ICAA Part of the PRA Rulebook.
Exposure to securitisation position
449 Institutions calculating risk-weighted exposure amounts in
accordance with Chapter 5 of Title II of Part Three or own
funds requirements in accordance with Article 337 or 338
shall disclose the following information separately for their
trading and non-trading book activities:		 See below
CRR article ref. Requirement summary Disclosure
(a) A description of their securitisation and re-securitisation
activities, including their risk management and investment
objectives in connection with those activities, their role in
securitisation and re-securitisation transactions, whether
they use the simple, transparent and standardised
securitisation (STS) as defined in point (10) of Article 242,
and the extent to which they use securitisation transactions
to transfer the credit risk of the securitised exposures to
third parties with, where applicable, a separate description
of their synthetic securitisation risk transfer policy.		 Section 3.8 Securitisation on pages 83 to 85
(b) The type of risks they are exposed to in their securitisation
and re-securitisation activities by level of seniority of the
relevant securitisation positions providing a distinction
between STS and non-STS positions and:
(i) the risk retained in own-originated transactions;
(ii) the risk incurred in relation to transactions originated by
third parties		 Section 3.8 Securitisation on pages 83 to 85
(c) Their approaches for calculating the risk-weighted
exposure amounts that they apply to their securitisation
activities, including the types of securitisation positions to
which each approach applies and with a distinction
between STS and non-STS positions.		 Section 3.8 Securitisation on pages 83 to 85
(d) A list of SSPEs falling into any of the following categories,
with a description of their types of exposures to those
SSPEs, including derivative contracts:
(i) SSPEs which acquire exposures originated by the
institutions;
(ii) SSPEs sponsored by the institutions;
(iii) SSPEs and other legal entities for which the institutions
provide securitisation-related services, such as advisory,
asset servicing or management services;
(iv) SSPEs included in the institutions' regulatory scope of
consolidation.		 Section 3.8 Securitisation on page 83
(e) A list of any legal entities in relation to which the
institutions have disclosed that they have provided support
in accordance with Chapter 5 of Title II of Part Three.		 Section 3.8 Securitisation on page 83
(f) A list of legal entities affiliated with the institutions and
that invest in securitisations originated by the institutions or
in securitisation positions issued by SSPEs sponsored by the
institutions.		 Section 3.8 Securitisation on page 83
(g) A summary of their accounting policies for securitisation
activity, including where relevant a distinction between
securitisation and re-securitisation positions.		 Section 3.8 Securitisation on page 84
(h) The names of the ECAIs used for securitisations and the
types of exposure for which each agency is used.		 Section 3.8 Securitisation on pages 83 to 85
(i) Where applicable, a description of the Internal Assessment
Approach as set out in Chapter 5 of Title II of Part Three,
including the structure of the internal assessment process
and relation between internal assessment and external
ratings of the relevant ECAI disclosed in accordance with
point (h), the control mechanisms for the internal
assessment process including discussion of independence,
accountability, and internal assessment process review, the
exposure types to which the internal assessment process is
applied and the stress factors used for determining credit
enhancement levels.		 Section 3.8 Securitisation on pages 83 to 85
(j) Separately for the trading book and the non-trading book,
the carrying amount of securitisation exposures, including
information on whether institutions have transferred
significant credit risk in accordance with Articles 244 and
245, for which institutions act as originator, sponsor or
investor, separately for traditional and synthetic
securitisations, and for STS and non-STS transactions and
broken down by type of securitisation exposures.		 Table 72: Securitisation exposures in the non-trading
book (UK-SEC1) on page 86
Table 73: Securitisation exposures in the trading book
(UK-SEC2) on page 87
CRR article ref. Requirement summary Disclosure
(k) For the trading and the non-trading book activities, the
following information:
(i) the aggregate amount of securitisation positions where
institutions act as originator or sponsor and the associated
risk-weighted assets and capital requirements by
regulatory approaches, including exposures deducted from
own funds or risk weighted at 1250%, broken down
between traditional and synthetic securitisations and
between securitisation and re-securitisation exposures,
separately for STS and non-STS positions, and further
broken down into a meaningful number of risk-weight or
capital requirement bands and by approach used to
calculate the capital requirements ;
(ii) the aggregate amount of securitisation positions where
institutions act as investor and the associated risk
weighted assets and capital requirements by regulatory
approaches, including exposures deducted from own funds
or risk weighted at 1250%, broken down between
traditional and synthetic securitisations, securitisation and
re-securitisation positions, and STS and non-STS positions,
and further broken down into a meaningful number of risk
weight or capital requirement bands and by approach
used to calculate the capital requirements;		 Table 74: Securitisation exposures in the non-trading
book and associated regulatory capital requirements
– institution acting as originator or as sponsor
(UK-SEC3) on page 88
Table 75: Securitisation exposures in the non-trading
book and associated regulatory capital requirements
– institution acting as investor (UK-SEC4) on page 89
(l) For exposures securitised by the institution, the amount of
exposures in default and the amount of the specific credit
risk adjustments made by the institution during the current
period, both broken down by exposure type.		 Table 76: Exposures securitised by the institution –
Exposures in default and specific credit risk
adjustments (UK-SEC5) on page 90
Remuneration policy
450 Institutions shall disclose the following information
regarding their remuneration policy and practices for those
categories of staff whose professional activities have a
material impact on risk profile of the institutions:
(1)(a) Information concerning the decision-making process used
for determining the remuneration policy, as well as the
number of meetings held by the main body overseeing
remuneration during the financial year, including, where
applicable, information about the composition and the
mandate of a remuneration committee, the external
consultant whose services have been used for the
determination of the remuneration policy and the role of
the relevant stakeholders.		 2025 Annual Reports and Accounts on pages 180
to 206
(1)(b) Information about the link between pay of the staff and
their performance.		 2025 Annual Reports and Accounts on pages 180
to 206
(1)(c) The most important design characteristics of the
remuneration system, including information on the criteria
used for performance measurement and risk adjustment,
deferral policy and vesting criteria.		 2025 Annual Reports and Accounts on page 180
(1)(d) The ratios between fixed and variable remuneration set in
accordance with rules 15.9 to 15.13 of the Remuneration Part
of the PRA Rulebook.		 2025 Annual Reports and Accounts on page 180
(1)(e) Information on the performance criteria on which the
entitlement to shares, options or variable components of
remuneration is based.		 2025 Annual Reports and Accounts on page 180
(1)(f) The main parameters and rationale for any variable
component scheme and any other non-cash benefits.		 2025 Annual Reports and Accounts on pages 180
to 206
(1)(g) Aggregate quantitative information on remuneration,
broken down by business area.		 2025 Annual Reports and Accounts on page 180
CRR article ref. Requirement summary Disclosure
(1)(h) Aggregate quantitative information on remuneration,
broken down by senior management and members of staff
whose professional activities have a material impact on the
risk profile of the institutions, indicating the following:
(i) the amounts of remuneration for the financial year, split
into fixed remuneration including a description of the fixed
components, and variable remuneration, and the number
of beneficiaries;
(ii) the amounts and forms of awarded variable
remuneration, split into cash, shares, share-linked
instruments and other types separately for the part paid
upfront and the deferred part;
(iii) the amounts of deferred remuneration awarded for
previous performance periods, split into the amount due to
vest in the financial year and the amount due to vest in
subsequent years;
(iv) the amount of deferred remuneration due to vest in
the financial year, and the number of beneficiaries of
those awards;
(v) the guaranteed variable remuneration awards during
the financial year, and the number of beneficiaries of
those awards;
(vi) severance payments awarded in previous periods, that
have been paid out during the financial year;
(vii) the amounts of severance payments awarded during
the financial year, split into paid upfront and deferred, the
number of beneficiaries of those payments and highest
payment that has been awarded to a single person;		 2025 Annual Reports and Accounts on pages 180
to 206
(1)(i) The number of individuals that have been remunerated
EUR 1 million or more per financial year, with the
remuneration between EUR 1 million and EUR 5 million
broken down into pay bands of EUR 500 000 and with the
remuneration of EUR 5 million and above broken down into
pay bands of EUR 1 million.		 See Article 450 (1)(h)(i) above
(1)(k) Information on whether the institution benefits from a
derogation laid down in the Remuneration Part of the PRA
Rulebook at 5.3, and/or 12.2 (second subparagraph), and
15.A1(3).
For the purposes of point (k) of the first subparagraph of
this paragraph, institutions that benefit from such a
derogation shall indicate whether they benefit from that
derogation on the basis of the Remuneration Part of the
PRA Rulebook at 5.3, and/or 12.2 (second subparagraph),
and 15.A1(3). They shall also indicate for which of the
remuneration principles they apply the derogation(s), the
number of staff members that benefit from the
derogation(s) and their total remuneration, split into fixed
and variable remuneration.		 See Article 450 (1)(h)(i) above
(2) For large institutions, the quantitative information on the
remuneration of institutions' collective management body
referred to in this Article shall also be made available to the
public, differentiating between executive and non
executive members.
Institutions shall comply with the requirements set out in
this Article in a manner that is appropriate to their size,
internal organisation and the nature, scope and complexity
of their activities and without prejudice to the GDPR.		 2025 Annual Reports and Accounts on pages 180
to 206
Leverage
451		 Institutions shall disclose the following information
regarding their leverage ratio as calculated in
accordance with Article 429 of Chapter 3 of the Leverage
Ratio (CRR) Part and their management of the risk of
excessive leverage:		 See below
CRR article ref. Requirement summary Disclosure
(1)(a) The leverage ratio. Table 26: LRSum: Summary reconciliation of
accounting assets and leverage ratio exposures (UK
LR1) on page 29
Table 27: LRCom: Leverage ratio common disclosure
(UK LR2) on page 30
Table 28: LRSpl: Split-up of on balance sheet
exposures (excluding derivatives, SFTs and exempted
exposures) (UK LR3) on page 31
(1)(b) The leverage ratio calculated as if central bank claims were
required to be included in the total exposure measure.		 Table 26: LRSum: Summary reconciliation of
accounting assets and leverage ratio exposures (UK
LR1) on page 29
Table 27: LRCom: Leverage ratio common disclosure
(UK LR2) on page 30
Table 28: LRSpl: Split-up of on balance sheet
exposures (excluding derivatives, SFTs and exempted
exposures) (UK LR3) on page 31
(1)(c) A breakdown of the total exposure measure, as well as a
reconciliation of the total exposure measure with the
relevant information disclosed in published financial
statements.		 Table 26: LRSum: Summary reconciliation of
accounting assets and leverage ratio exposures (UK
LR1) on page 29
Table 27: LRCom: Leverage ratio common disclosure
(UK LR2) on page 30
Table 28: LRSpl: Split-up of on balance sheet
exposures (excluding derivatives, SFTs and exempted
exposures) (UK LR3) on page 31
(1)(d) A description of the processes used to manage the risk of
excessive leverage.		 Section 2.6 Leverage Ratio on page 28
(1)(e) A description of the factors that had an impact on the
leverage ratio during the period to which the disclosed
leverage ratio refers.		 Section 2.6 Leverage ratio on page 28
(1)(f) In relation to the quarterly periods up to 31 December 2025,
the leverage ratio calculated as if Article 468 of the CRR did
not apply for purposes of the capital measure under Article
429(3) of Chapter 3 of the Leverage Ratio (CRR) Part.
(1)(g) In relation to the quarterly periods up to 31 December 2025,
the leverage ratio calculated as if Article 473a of the CRR
did not apply for purposes of the capital measure under
Article 429(3) of Chapter 3 of the Leverage Ratio (CRR)
Part.
(2) An LREQ firm must disclose each of the following See below
(2)(a) The average exposure measure. Table 27: LRCom: Leverage ratio common disclosure
(UK LR2) on page 30
(2)(b) The average leverage ratio. Table 27: LRCom: Leverage ratio common disclosure
(UK LR2) on page 30
(2)(c) The average leverage ratio calculated as if central bank
claims were required to be included in the total exposure
measure; and		 Table 27: LRCom: Leverage ratio common disclosure
(UK LR2) on page 30
(2)(d) The countercyclical leverage ratio buffer. Table 27: LRCom: Leverage ratio common disclosure
(UK LR2) on page 30
(3) An LREQ firm must disclose such information as is
necessary to enable users to understand changes in the
firm's total exposure measure and tier 1 capital (leverage)
over the quarter that have affected the firm's average
leverage ratio.
(4) Subject to paragraph 5 See below
(4)(a) For the purposes of paragraph 2(a) an LREQ firm must
calculate its average exposure measure for a quarter as the
sum of:
(i) the arithmetic mean of the firm's total exposure measure
in relation to on-balance sheet assets and securities
financing transactions on each day in the quarter; and
(ii) the arithmetic mean of the firm's total exposure
measure excluding on-balance sheet assets and securities
financing transactions on the last day of each month in the
quarter; and
CRR article ref. Requirement summary Disclosure
4(b) For the purposes of paragraphs 2(a) and 3, an LREQ firm
must calculate its average leverage ratio for a quarter as its
capital measure divided by its exposure measure where
the:
(i) capital measure is the arithmetic mean of the firm's tier 1
capital (leverage) on the last day of each month in the
quarter; and
(ii) exposure measure is the sum derived in accordance with
(a), unless paragraph 5 applies in which case it shall be the
sum derived in accordance with that paragraph.
(5) In relation to the quarterly periods up to 1 January 2025 an
LREQ firm must calculate its average exposure measure for
a quarter as the sum of:
(5)(a) The arithmetic mean of the firm's total exposure measure
in relation to on-balance sheet assets on each day in the
quarter; and
(5)(b) The arithmetic mean of the firm's total exposure measure
excluding on-balance sheet assets on the last day of each
month in the quarter.
Liquidity Requirements
451a (1) Institutions that are subject to Part Six shall disclose
information on their liquidity coverage ratio, net stable
funding ratio and liquidity risk management in accordance
with this Article.		 Section 7 Liquidity Risk on pages 106 to 111
(2) Institutions shall disclose the following information in
relation to their liquidity coverage ratio as calculated in
accordance with the Chapter 2 of the Liquidity Coverage
Ratio (CRR) Part of the PRA Rulebook:		 See below
(2)(a) The average or averages, as applicable, of their liquidity
coverage ratio based on end-of-the-month observations
over the preceding 12 months for each quarter of the
relevant disclosure period.		 Table 97: Liquidity Coverage Ratio (LCR) (UK LIQ1) on
page 107
(2)(b) The average or averages, as applicable, of their total liquid
assets, after applying the relevant haircuts, included in the
liquidity buffer pursuant to the Chapter 2 of the Liquidity
Coverage Ratio (CRR) Part of the PRA Rulebook, based on
end-of-the-month observations over the preceding
12 months for each quarter of the relevant disclosure
period, and a description of the composition of that
liquidity buffer.		 Table 97: Liquidity Coverage Ratio (LCR) (UK LIQ1) on
page 107
(2)(c) The averages of their liquidity outflows, inflows and net
liquidity outflows as calculated in accordance with the
Chapter 2 of the Liquidity Coverage Ratio (CRR) Part of the
PRA Rulebook, based on end-of-the-month observations
over the preceding 12 months for each quarter of the
relevant disclosure period and the description of their
composition.		 Table 97: Liquidity Coverage Ratio (LCR) (UK LIQ1) on
page 107
(3) Institutions shall disclose the following information in
relation to their net stable funding ratio as calculated in
accordance with Title IV of Part Six:		 See below
(3)(a) Averages of their net stable funding ratio calculated in
accordance with Chapter 2 of Title IV of Part Six for each
quarter of the relevant disclosure period, based on
end-of-the-quarter observations over the preceding four
quarters.		 Table 98: Net Stable Funding Ratio (UK LIQ2) on
page 109.
(3)(b) An overview of the amount of available stable funding
calculated in accordance with Chapter 3 of Title IV of Part
Six for each quarter of the relevant disclosure period,
comprising averages based on end-of-the-quarter
observations over the preceding four quarters.		 Table 98: Net Stable Funding Ratio (UK LIQ2) on
page 109.
CRR article ref. Requirement summary Disclosure
(3)(c) An overview of the amount of required stable funding
calculated in accordance with Chapter 4 of Title IV of Part
Six for each quarter of the relevant disclosure period,
comprising averages based on end-of-the-quarter
observations over the preceding four quarters.		 Table 98: Net Stable Funding Ratio (UK LIQ2) on page
109.
(4) Institutions shall disclose the arrangements, systems,
processes and strategies put in place to identify, measure,
manage and monitor their liquidity risk in accordance with
the Internal Liquidity Adequacy Assessment Part of the PRA
Rulebook.		 Section 7 Liquidity Risk on pages 106 to 111
Use of the IRB Approach to credit risk
452 Institutions calculating the risk-weighted exposure
amounts under the IRB Approach to credit risk shall disclose
the following information:		 See below
(a) The competent authority's permission of the approach or
approved transition.		 Section 3.3 Internal Ratings Based models on pages 33
to 54
Table 65: Scope of the use of IRB and SA approaches
(UK CR6-A) on page 76
(b) For each exposure class referred to in Article 147, the
percentage of the total exposure value of each exposure
class subject to the Standardised Approach laid down in
Chapter 2 of Title II of Part Three or to the IRB Approach
laid down in Chapter 3 of Title II of Part Three, as well as the
part of each exposure class subject to a roll-out plan; where
institutions have received permission to use own LGDs and
conversion factors for the calculation of risk-weighted
exposure amounts, they shall disclose separately the
percentage of the total exposure value of each exposure
class subject to that permission.		 Section 3.3 Internal Ratings Based models on pages 33
to 54
Table 65: Scope of the use of IRB and SA approaches
(UK CR6-A) on page 76
Table 52: Internal default grade probabilities and
mapping to external ratings on page 63
(c) The control mechanisms for rating systems at the different
stages of model development, controls and changes, which
shall include information on:
(i) the relationship between the risk management function
and the internal audit function;
(ii) the rating system review;
(iii) the procedure to ensure the independence of the
function in charge of reviewing the models from the
functions responsible for the development of the models;
(iv) the procedure to ensure the accountability of the
functions in charge of developing and reviewing the
models;		 Section 3.3 Internal Ratings Based models on pages 33
to 54
Table 65: Scope of the use of IRB and SA approaches
(UK CR6-A) on page 76
(d) The role of the functions involved in the development,
approval and subsequent changes of the credit risk models.		 Section 3.3 Internal Ratings Based models on pages 33
to 54
Table 65: Scope of the use of IRB and SA approaches
(UK CR6-A) on page 76
(e) The scope and main content of the reporting related to
credit risk models.		 Section 3.3 Internal Ratings Based models on pages 33
to 54
Table 65: Scope of the use of IRB and SA approaches
(UK CR6-A) on page 76
CRR article ref. Requirement summary Disclosure
(f) A description of the internal ratings process by exposure
class, including the number of key models used with respect
to each portfolio and a brief discussion of the main
differences between the models within the same portfolio,
covering:
(i) the definitions, methods and data for estimation and
validation of PD, which shall include information on how
PDs are estimated for low default portfolios, whether there
are regulatory floors and the drivers for differences
observed between PD and actual default rates at least for
the last three periods;
(ii) where applicable, the definitions, methods and data for
estimation and validation of LGD, such as methods to
calculate downturn LGD, how LGDs are estimated for low
default portfolio and the time lapse between the default
event and the closure of the exposure;
(iii) where applicable, the definitions, methods and data for
estimation and validation of conversion factors, including
assumptions employed in the derivation of those variables;		 Section 3.3 Internal Ratings Based models on pages 33
to 54
Table 65: Scope of the use of IRB and SA approaches
(UK CR6-A) on page 76
(g) As applicable, the following information in relation to each
exposure class referred to in Article 147:
(i) their gross on-balance-sheet exposure;
(ii) their off-balance-sheet exposure values prior to the
relevant conversion factor;
(iii) their exposure after applying the relevant conversion
factor and credit risk mitigation;
(iv) any model, parameter or input relevant for the
understanding of the risk weighting and the resulting risk
exposure amounts disclosed across a sufficient number of
obligor grades (including default) to allow for a meaningful
differentiation of credit risk;
(v) separately for those exposure classes in relation to
which institutions have received permission to use own
LGDs and conversion factors for the calculation of
risk-weighted exposure amounts, and for exposures for
which the institutions do not use such estimates, the values
referred to in points (i) to (iv) subject to that permission;		 Tables 53 to 64: IRB approach – Credit risk exposures
by exposure class and PD range on pages 64 to 75
(h) Institutions' estimates of PDs against the actual default
rate for each exposure class over a longer period, with
separate disclosure of the PD range, the external rating
equivalent, the weighted average and arithmetic average
PD, the number of obligors at the end of the previous year
and of the year under review, the number of defaulted
obligors, including the new defaulted obligors, and the
annual average historical default rate.		 Tables 29 to 38: IRB approach – Back-testing of PD per
exposure class (UK CR9) on pages 35 to 44
Tables 39 to 43: IRB – Backtesting of probability of
default (PD) (UK CR9.1) on pages 45 to 53
Use of credit risk mitigation techniques
453 Institutions using credit risk mitigation techniques shall
disclose the following information:		 See below
(a) The core features of the policies and processes for on- and
off-balance-sheet netting and an indication of the extent
to which institutions make use of balance sheet netting.		 Section 3.6. Credit risk mitigation on page 78
(b) The core features of the policies and processes for eligible
collateral evaluation and management.		 See 453(a) above
(c) A description of the main types of collateral taken by the
institution to mitigate credit risk.		 See 453(a) above
(d) For guarantees and credit derivatives used as credit
protection, the main types of guarantor and credit
derivative counterparty and their creditworthiness used for
the purpose of reducing capital requirements, excluding
those used as part of synthetic securitisation structures.		 See 453(a) above
(e) Information about market or credit risk concentrations
within the credit mitigation taken.		 See 453(a) above
CRR article ref. Requirement summary Disclosure
(f) For institutions calculating risk-weighted exposure amounts
under the Standardised Approach or the IRB Approach, the
total exposure value not covered by any eligible credit
protection and the total exposure value covered by eligible
credit protection after applying volatility adjustments; the
disclosure set out in this point shall be made separately for
loans and debt securities and including a breakdown of
defaulted exposures.		 Table 67: CRM techniques overview: Disclosure of the
use of credit risk mitigation techniques (UK CR3) on
page 78
(g) The corresponding conversion factor and the credit risk
mitigation associated with the exposure and the incidence
of credit risk mitigation techniques with and without
substitution effect.		 Table 68: UK CR4 – Credit risk exposure and CRM
effects on page 79
(h) For institutions calculating risk-weighted exposure amounts
under the Standardised Approach, the on- and off
balance-sheet exposure value by exposure class before
and after the application of conversion factors and any
associated credit risk mitigation.		 Table 68: UK CR4 – Credit risk exposure and CRM
effects on page 79
(i) For institutions calculating risk-weighted exposure amounts
under the Standardised Approach, the risk-weighted
exposure amount and the ratio between that risk-weighted
exposure amount and the exposure value after applying
the corresponding conversion factor and the credit risk
mitigation associated with the exposure; the disclosure set
out in this point shall be made separately for each exposure
class.		 Table 68: UK CR4 – Credit risk exposure and CRM
effects on page 79
(j) The institutions using the Advanced Measurement
Approaches set out in Articles 321 to 324 for the calculation
of their own funds requirements for operational risk shall
disclose a description of their use of insurance and other
risk transfer mechanisms for the purpose of mitigating
that risk.		 Table 69: UK CR7 – IRB approach – Effect on the
RWEAs of credit derivatives used as CRM techniques
on page 80
Table 70: UK CR7-A – IRB approach – Disclosure of the
extent of the use of CRM techniques on page 80
Use of the Advanced Measurement Approaches to operational risk
454 The institutions using the Advanced Measurement
Approaches set out in Articles 321 to 324 for the calculation
of their own funds requirements for operational risk shall
disclose a description of their use of insurance and other
risk transfer mechanisms for the purpose of mitigating
that risk.		 The Group does not hold a permission to use
the advanced measurement approach for
operational risk
Use of Internal Market Risk Models
455 Institutions calculating their capital requirements in
accordance with Article 363 shall disclose the following
information:		 See below
(a) For each sub-portfolio covered:
(i) the characteristics of the models used;
(ii) where applicable, for the internal models for
incremental default and migration risk and for correlation
trading, the methodologies used and the risks measured
through the use of an internal model including a
description of the approach used by the institution to
determine liquidity horizons, the methodologies used to
achieve a capital assessment that is consistent with the
required soundness standard and the approaches used in
the validation of the model;
(iii) a description of stress testing applied to the sub
portfolio;
(iv) a description of the approaches used for back-testing
and validating the accuracy and consistency of the internal
models and modelling processes;		 The Group does not have IMA approval for
incremental default and migration risk for correlation
trading.
(b) The scope of permission by the competent authority. Section 4.1 under the heading Regulatory VaR and
Regulatory VaR vs. management VaR on page 91
(c) A description of the extent and methodologies for
compliance with the requirements set out in Articles 104
and 105.		 Section 4.1 under the heading Trading book and
Valuation framework on page 91
CRR article ref. Requirement summary Disclosure
(d) The highest, the lowest and the mean of the following:
(i) the daily value-at-risk measures over the reporting
period and at the end of the reporting period;
(ii) the stressed value-at-risk measures over the reporting
period and at the end of the reporting period;
(iii) the risk numbers for incremental default and migration
risk and for the specific risk of the correlation trading
portfolio over the reporting period and at the end of the
reporting period.		 Table 79 IMA values for trading portfolios (UK MR3)
on page 93
(e) The elements of the own funds requirement as specified in
Article 364.		 Table 80 Market risk under the internal Model
Approach (IMA) (UK MR2-A) on page 93
(f) The weighted average liquidity horizon for each sub
portfolio covered by the internal models for incremental
default and migration risk and for correlation trading.		 The Group has no model permissions for specific rate
and comprehensive risk measure.
(g) A comparison of the daily end-of-day value-at-risk
measures to the one-day changes of the portfolio's value
by the end of the subsequent business day together with
an analysis of any important overshooting during the
reporting period.		 Backtesting overshooting are shown in tables 81 and
82 (UK MR4) on page 94

Summary of differences between Pillar 3 Disclosures and the Risk and capital review section of the Annual Report and Accounts

The Group's Pillar 3 Disclosures for 31 December 2025 provide details from a regulatory perspective on certain aspects of credit risk, market risk and operational risk. The quantitative disclosures in the Pillar 3 Disclosures will not; however, be directly comparable to those in the Risk and capital review section of the Annual Report and Accounts as they are largely based on internally modelled risk metrics such as PD, LGD and EAD under Basel framework, whereas the quantitative disclosures in the Risk review are based on IFRS. EAD differs from the IFRS exposure primarily due to the inclusion of undrawn credit lines and off-balance sheet commitments. In addition, a number of the credit risk disclosures within the Pillar 3 Disclosures are only provided for the internal ratings based portfolio.

Topic Annual Report and Accounts Pillar 3 Disclosures
Basis of
requirements		 •
The Group's Annual Report and Accounts are prepared in
accordance with the requirements of IFRS as endorsed by
the EU, the UK Companies Act 2006, and the UK, Hong
Kong and India Listing rules		 •
The Group's Pillar 3 Disclosures provide details on
risk from a regulatory perspective to fulfil Basel III /
CRD V requirements which have been implemented
in the UK by the Prudential Regulatory Authority
(PRA) via the 'Disclosure (CRR)' part of the PRA
Rulebook.
Basis of
preparation		 •
The quantitative credit risk disclosures in the Risk
review are based on IFRS
•
Loans and advances are analysed between the four
client segments of Corporate & Institutional,
Commercial, Private and Retail Banking (split by
industry classification codes)
•
Market risk disclosures are presented using VaR
methodology for the trading and non- trading books		 •
Provides details from a regulatory perspective on
certain aspects of credit risk, market risk and
operational risk. For credit risk this is largely
based on internally modelled risk metrics such as
PD, LGD and EAD under Basel rules
•
Loans and advances are analysed between
those that are internal ratings basis (IRB) and
standardised, split by standard CRR categories
•
Market risk and operational risk disclosures are
based on the capital required
Coverage •
All external assets which have an exposure to credit
risk
•
Market risk exposure is the trading and non-trading
books
•
Liquidity risk analysis of contractual maturities, liquid
assets and encumbered assets		 •
The credit risk disclosures are provided for
approved portfolios as per the IRB approach and
remaining portfolios are assessed as per
Standardised rules as prescribed in the CRR
•
The PRA has granted the Group permission to
use the internal model approach (IMA) covering
the majority of market risk in the trading book.
Positions outside the IMA scope are assessed
according to standard CRR rules
•
The Standardised Approach consistent with the
CRR requirements is used to assess its regulatory
operational risk capital requirement
Credit rating
and
measurement		 •
Overview of credit risk management credit grading
and the use of IRB models is on page 264
•
Maximum exposure to credit risk set out on page 234
•
Internal credit grading analysis provided by business
segment for both performing and non-performing
loans and advances on pages 237 to 246
•
External credit grading analysis for unimpaired debt
securities and treasury bills is set out on pages 237 to
246		 •
Details of IRB and Standardised approach to
credit risk is set out on pages 32 to 33
•
For the IRB portfolio, page 63 provides an
indicative mapping of the Group's credit grades
in relation to Standard & Poor's credit ratings.
•
Minimum regulatory capital requirements for
credit risk on page 25
•
Credit grade analysis provided for the IRB
portfolio only. EAD within the IRB portfolio after
CRM, Undrawn commitments, exposure
weighted average LGD and weighted average
risk-weight internal credit grade on pages 64 to
75 and 100 to 102
•
Credit quality step analysis for Standardised
portfolio is provided on pages 88 to 89

Summary of differences

Topic Annual Report and Accounts Pillar 3 Disclosures
Credit risk
mitigation		 •
CRM approach is set out on page 226
•
Overview of collateral held and other credit risk
mitigants provided on page 226. Quantitative
overview of other risk mitigants including:
•
Securitisations, where the Group transfers the rights to
collect principal and interest on client loan assets to
third parties
•
Master netting agreements, CSAs and cash
collateral for derivatives		 •
Provides details on CRM from a regulatory
perspective by providing EAD after CRM by IRB
exposure class. Explanation is given on what
constitutes eligible collateral including
explanations of funded and unfunded
protection. The main type of collateral for the
Group's Standardised portfolio is also disclosed.
Please refer to pages 88 to 89
•
Extensive disclosures on securitisation including
notional and carrying amounts, details of
securitisation programmes where the Group is
an originator, the accounting and governance of
securitisation activities and retained exposures
and carrying value by risk weight band. Please
refer to pages 86 to 90
•
EAD for items subject to CCR risk pre and post
credit mitigation is disclosed. The products that
are covered under CCR include 'repo style'
transactions and derivative transactions.
Please refer to pages 97
Market risk •
Details of the VaR methodology, and VAR (trading
and non trading) is disclosed by risk type on pages
277 to 278
•
Details on Group Treasury's market risk, including a
table showing a parallel shift in the yield curves, on
page 285		 •
Provides details of the internal model approvals,
such as the CAD2 granted by the PRA and the
extension of the CAD2 scope to include coal
market risk.
•
Market risk capital requirements for the trading
book disclosed by risk type on page 92

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