Standard Chartered PLC

National Storage Mechanism | Additional information RNS Number : 9249M Standard Chartered PLC 02 May 2024 Standard Chartered PLC Q1'24 Results 02 May 2024 Registered in England under company No. 966425 Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK Table of contents Performance highlights 1 Statement of results 3 Group Chief Financial Officer's review 4 Supplementary financial information 13 Underlying versus reported results reconciliations 24 Risk review 28 Capital review 33 Financial statements 37 Other supplementary information 42 Unless another currency is specified, the word 'dollar' or symbol '$' in this document means US dollar and the word 'cent' or symbol 'c' means one-hundredth of one US dollar. 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. Within the tables in this report, blank spaces indicate that the number is not disclosed, dashes indicate that the number is zero and nm stands for not meaningful. Standard Chartered PLC is incorporated in England and Wales with limited liability. Standard Chartered PLC is headquartered in London. The Group's head office provides guidance on governance and regulatory standards. Standard Chartered PLC stock codes are: HKSE 02888 and LSE STAN.LN. Standard Chartered PLC - Results for the first quarter ended 31 March 2024 All figures are presented on an underlying basis and comparisons are made to 2023 on a reported currency basis, unless otherwise stated. A reconciliation of restructuring and other items excluded from underlying results is set out on pages 24-27. Bill Winters, Group Chief Executive, said: "We delivered a strong set of results in the first quarter of 2024, with double-digit growth in income and positive operational leverage. Business performance was strong and broad-based across our segments, products and markets in what continues to be an uncertain environment. We have taken action to create a simpler and more efficient organisation with changes to our Group management structure and we are advancing our Fit for Growth programme. We remain confident in the delivery of our financial targets and are maintaining our full year 2024 guidance." Selected information on Q1'24 financial performance with comparisons to Q1'23 unless otherwise stated �� Operating income up 17% to $5.2bn, up 20% at constant currency (ccy); up 14% at ccy excluding two notable items of $234m reported in Treasury and Other products - Net interest income (NII) up 5% at ccy to $2.4bn with net interest margin of 1.76%, up 6bps quarter-on-quarter (QoQ) - Non NII up 37% at ccy to $2.7bn, up 25%, excluding two notable items - Markets up 17% at ccy from higher Macro Trading across rates, foreign exchange and commodities and Credit Trading - Wealth Solutions up 23% at ccy, with broad-based growth across products and supported by robust leading indicators in Affluent net new money and new to bank clients - Banking up 17% at ccy, from Lending & Financial Solutions driven by higher origination and distribution volumes - Two notable items of $234m from revaluation of FX positions in Egypt and hyperinflation in Ghana �� Operating expenses up 6% at ccy to $2.8bn, up 2% QoQ at ccy �� Income-to-cost jaws positive in the quarter �� Credit impairment charge of $176m in Q1'24, primarily Wealth & Retail Banking (WRB) of $136m reflecting a charge in line with recent quarters; net nil charge for Corporate & Investment Banking (CIB) with China Commercial Real Estate (CRE) portfolio charge of $10m offset by other releases - Loan-loss rate (LLR) of 23bps in Q1'24 - High risk assets of $8.5bn, down $2bn QoQ; $1bn from reversal of existing sovereign exposure from reverse repo to investment securities - China CRE portfolio: total expected credit loss provisions $1.2bn, stage 3 exposures of $1.5bn with cover ratio including collateral of 90% and a remaining management overlay of $129m �� Underlying profit before tax of $2.1bn, up 27% at ccy; reported profit before tax of $1.9bn, up 8% at ccy �� Tax charge of $0.5bn; underlying effective tax rate of 26% �� Other items of $112m includes $100m provision in respect of the Korea equity linked securities portfolio �� Balance sheet remains strong, liquid and well-diversified - L oans and advances to customers of $283bn, down $4bn or 1 % since 31.12.23; up $4bn or 2% on an underlying basis; growth from CIB partly offset by mortgage headwinds - Customer deposits of $459bn, down $10bn or 2% since 31.12.23; down $6bn or 1% at ccy; growth in WRB offset by lower CIB CASA from month end client activity, substantially returned post quarter end - Liquidity coverage ratio of 146% (31.12.23: 145%) �� Risk-weighted assets (RWA) of $252bn, up $8bn or 3% since 31.12.23 - Credit risk RWA up $2bn includes increases from change in asset mix and model changes, partly offset by lower FX - Market risk RWA up $4bn; RWA deployed to help clients capture opportunities in Markets - $2bn from mechanically higher Operational risk RWA, due to an increase in average income as measured over a rolling three-year time horizon �� Capital position remains robust - Common equity tier 1 ( CET1) ratio of 13.6% (31.3.24) broadly stable post the full impact of the $1 billion share buyback announced in February 2024; underlying profit accretion offset by increased RWAs; around two-thirds of share buyback completed to date �� Underlying earnings per share (EPS) increased 15.3 cents or 41% to 52.9 cents; Reported EPS increased 5.8 cents or 14% to 46.5 cents Page 01 Standard Chartered PLC - Results for the first quarter ended 31 March 2024 �� Tangible net asset value per share decreased 3 cents to 1,390 cents since 31.12.23; profit accretion offset by reserve movements and full $1bn share buyback reduction from tangible equity, whilst reduction in the number of basic ordinary shares reflects buyback completion of 44% as of 31.3.24 �� Return on tangible equity (RoTE) of 15.2%, up 3%pts Guidance The start to the year has been strong and the momentum we see across our businesses gives us confidence in the delivery of our financial targets set out in February. We are maintaining our 2024 guidance: �� Operating income to increase around the top of 5-7% range in 2024, excluding the two notable items in Q1'24 �� Net interest income for 2024 of $10bn to $10.25bn, at ccy �� Positive income-to-cost jaws, excluding UK bank levy, at ccy in 2024 �� Low single-digit percentage growth in loans and advances to customers and RWA in 2024 �� Continue to expect LLR to normalise towards the historical through the cycle 30 to 35bps range �� Continue to operate dynamically within the full 13-14% CET1 ratio target range �� Continue to increase full-year dividend per share over time �� RoTE increasing steadily from 10%, targeting 12% in 2026 and to progress thereafter Page 02 Statement of results Q1'24 $million Q1'23 $million Change1 % Underlying performance Operating income 5,152 4,396 17 Operating expenses (including UK bank levy) (2,786) (2,675) (4) Credit impairment (176) (26) nm�� Other impairment (60) - nm�� (Loss)/Profit from associates and joint ventures (1) 11 nm�� Profit before taxation 2,129 1,706 25 Profit attributable to ordinary shareholders�� 1,393 1,076 29 Return on ordinary shareholders' tangible equity (%) 15.2 11.9 330bps Cost to income ratio (excluding bank levy) (%) 54.1 60.9 680bps Reported performance7 Operating income 5,130 4,560 13 Operating expenses (2,997) (2,750) (9) Credit impairment (165) (20) nm�� Other impairment (60) - nm�� Profit from associates and joint ventures 6 18 nm�� Profit before taxation 1,914 1,808 6 Taxation (519) (464) (12) Profit for the period 1,395 1,344 4 Profit attributable to parent company shareholders 1,403 1,341 5 Profit attributable to ordinary shareholders2 1,223 1,163 5 Return on ordinary shareholders' tangible equity (%) 13.5 13.0 50bps Cost to income ratio (including bank levy) (%) 58.4 60.3 190bps Net interest margin (%) (adjusted)6 1.76 1.63 13bps Balance sheet and capital Total assets 812,525 820,678 (1) Total equity 50,839 50,011 2 Average tangible equity attributable to ordinary shareholders�� 36,510 36,269 1 Loans and advances to customers 283,403 300,627 (6) Customer accounts 459,386 462,169 (1) Risk weighted assets 252,116 250,893 - Total capital 52,538 52,318 - Total capital (%) 20.8 20.9 (10)bps Common Equity Tier 1 34,279 34,402 - Common Equity Tier 1 ratio (%) 13.6 13.7 (10)bps Advances-to-deposits ratio (%)3 54.3 56.2 (2.0) Liquidity coverage ratio (%) 146 161 (15) Leverage ratio (%) 4.8 4.7 10bps Information per ordinary share Cents Cents Change1 Earnings per share - underlying4 52.9 37.6 15.3 - reported4 46.5 40.7 5.8 Net asset value per share 1,626 1,505 121 Tangible net asset value per share5 1,390 1,297 93 Number of ordinary shares at period end (millions) 2,610 2,833 (8) 1 Variance is better/(worse) other than assets, liabilities and risk-weighted assets. Change is percentage points difference between two points rather than percentage change for total capital ratio (%), common equity tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio (%), liquidity coverage ratio (%), leverage ratio (%), cost-to-income ratio (%) and return on ordinary shareholders' tangible equity (%). Change is cents difference between two points rather than percentage change for earnings per share, net asset value per share and tangible net asset value per share 2 Profit attributable to ordinary shareholders is after the deduction of dividends payable to the holders of non-cumulative redeemable preference shares and Additional Tier 1 securities classified as equity 3 When calculating this ratio, total loans and advances to customers excludes reverse repurchase agreements and other similar secured lending, excludes approved balances held with central banks, confirmed as repayable at the point of stress and includes loans and advances to customers held at fair value through profit and loss. Total customer accounts include customer accounts held at fair value through profit or loss 4 Represents the underlying or reported earnings divided by the basic weighted average number of shares. Prior period refers to 3 months ended 31.03.23 5 Calculated on period end net asset value, tangible net asset value and number of shares 6 Net interest margin is calculated as adjusted net interest income divided by average interest-earning assets, annualised 7 Reported performance/results within this interim financial report means amounts reported under UK-adopted IAS and EU IFRS. In prior periods Reported performance/results were described as Statutory performance/results 8 Not meaningful Page 03 Group Chief Financial Officer's review The Group delivered a strong performance in the first quarter of 2024 Summary of financial performance Q1'24 $million Q1'23 $million Change % Constant currency change�� % Q4'23 $million Change % Constant currency change�� % Underlying net interest income3 2,419 2,341 3 5 2,392 1 1 Underlying non NII3 2,733 2,055 33 37 1,632 67 68 Underlying operating income 5,152 4,396 17 20 4,024 28 28 Other operating expenses (2,786) (2,675) (4) (6) (2,754) (1) (2) UK bank levy - - nm4 nm4 (108) 100 100 Underlying operating expenses (2,786) (2,675) (4) (6) (2,862) 3 2 Underlying operating profit before impairment and taxation 2,366 1,721 37 40 1,162 104 102 Credit impairment (176) (26) nm4 nm4 (62) (184) (167) Other impairment (60) - nm4 nm4 (41) (46) (50) Profit from associates and joint ventures (1) 11 (109) (109) (3) 67 67 Underlying profit before taxation 2,129 1,706 25 27 1,056 102 100 Restructuring (55) 48 nm4 nm4 (63) 13 3 Goodwill & other impairment - - nm4 nm4 (153) 100 100 DVA (48) 54 (189) (189) 35 nm4 nm4 Other items (112) - nm4 nm4 262 (143) (143) Reported profit before taxation 1,914 1,808 6 8 1,137 68 66 Taxation (519) (464) (12) (12) (199) (161) (123) Profit for the period 1,395 1,344 4 6 938 49 52 Net interest margin (%)2 1.76 1.63 13 1.70 6 Underlying return on tangible equity (%)2 15.2 11.9 330 9.4 580 Underlying earnings per share (cents) 52.9 37.6 41 30.4 74 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Change is the basis points (bps) difference between the two periods rather than the percentage change 3 To be consistent with how we compute Net Interest Margin ('NIM'), and to align with the way we manage our business, we have changed our definition of Underlying net interest income ('NII') and Underlying non NII. The adjustments made to NIM, including interest expense relating to funding our trading book, will now be shown against Underlying non NII rather than Underlying NII. Prior periods have been restated. There is no impact on total income 4 Not meaningful Reported financial performance summary Q1'24 $million Q1'23 $million Change % Constant currency change�� % Q4'23 $million Change % Constant currency change�� % Net interest income 1,572 2,006 (22) (20) 1,860 (15) (16) Non NII 3,558 2,554 39 43 2,509 42 42 Reported operating income 5,130 4,560 13 15 4,369 17 17 Reported operating expenses (2,997) (2,750) (9) (12) (3,013) 1 - Reported operating profit before impairment and taxation 2,133 1,810 18 20 1,356 57 55 Credit impairment (165) (20) nm�� nm�� (55) nm�� (185) Goodwill & other impairment (60) - nm�� nm�� (197) 70 69 Profit from associates and joint ventures 6 18 (67) (67) 33 (82) (82) Reported profit before taxation 1,914 1,808 6 8 1,137 68 66 Taxation (519) (464) (12) (12) (199) (161) (123) Profit/(loss) for the period 1,395 1,344 4 6 938 49 52 Reported return on tangible equity (%)2 13.5 13.0 50 10.0 350 Reported earnings per share (cents) 46.5 40.7 14 34.0 37 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Change is the basis points (bps) difference between the two periods rather than the percentage change 3 Not meaningful Page 04 Group Chief Financial Officer's review continued The Group delivered a strong performance in the first quarter of 2024. The Group's underlying profit before tax of $2.1 billion was an increase of 27 per cent year-on-year at constant currency. Underlying operating income grew 20 per cent at constant currency to $5.2 billion and was up 14 per cent at constant currency excluding two notable items totalling $234 million relating to gains on revaluation of FX positions in Egypt and a hyperinflationary accounting adjustment in Ghana. Underlying net interest income was up 5 per cent at constant currency, underlying non NII increased 37 per cent or up 25 per cent at constant currency excluding the impact of the two notable items. The net interest margin increased 6 basis points to 176 basis points in the quarter, as the Group benefitted from the one month impact of the roll-off of short-term hedges and improved liability mix. Underlying expenses increased 6 per cent at constant currency driven higher by inflation and business growth initiatives. Income-to-cost jaws were positive in the quarter. Credit impairment charges of $176 million in the quarter were equivalent to an annualised loan-loss rate of 23 basis points and benefitted from a net nil charge in Corporate & Investment Banking (CIB). The Group remains well capitalised and highly liquid with a diverse and stable deposit base. The liquidity coverage ratio of 146 per cent was 1 percentage point higher on the prior quarter, reflecting disciplined asset and liability management. The common equity tier 1 (CET1) ratio of 13.6 per cent remains robust and stable post the impact of the full $1 billion share buyback announced in February 2024 with profit accretion in the first quarter offset by growth in Risk-weighted assets (RWA).. All commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a reported currency basis, unless otherwise stated. �� Underlying operating income of $5.2 billion was up 17 per cent or 20 per cent at constant currency driven by strong business activity and the continued benefit of higher interest rates. Excluding the two notable items of $234 million relating to translation gains on revaluation of FX positions in Egypt and a hyperinflationary accounting adjustment in Ghana, income increased 14 per cent at constant currency �� Underlying net interest income increased 3 per cent, or 5 per cent at constant currency. The net interest margin increased 13 basis points as the Group increased its pricing on assets and the yield on its Treasury portfolio more quickly than it repriced its liability base, reflecting strong pricing discipline and passthrough rate management as interest rates increased in key footprint currencies. The net interest margin also benefitted from a $97 million increase from the roll-off of the loss-making short-term hedges. The improvement in margin was in part offset by lower asset volumes, partly due to currency translation �� Underlying non NII increased 33 per cent driven by strong performances in Wealth Solutions, Banking and Markets as well as the inclusion of two notable items under Treasury and Other income. Excluding the two notable items of $234 million, underlying non NII was up 25 per cent at constant currency. An accounting asymmetry resulting from Treasury management of FX positions also contributed to an increase in underlying non NII, with a partial offset from reduced underlying net interest income �� Underlying operating expenses increased 4 per cent, or 6 per cent at constant currency. This growth reflected the impact of inflation and the Group's continued investment into business growth initiatives including Wealth & Retail Banking (WRB) relationship managers and CIB capabilities. The Group generated positive income-to-cost jaws of 13 per cent at constant currency �� Credit impairment was a $176 million charge in the quarter with a $136 million charge in WRB and a $28 million charge in Ventures primarily from Mox. There was a net nil charge in CIB for the quarter as the charges including $10 million relating to the China commercial real estate sector were offset by releases in other parts of the portfolio. The loan-loss rate for the quarter annualises to 23 basis points �� Other impairment charge of $60 million was related to the write-off of software assets and had no impact on our capital ratios �� Profit from associates and joint ventures decreased $12 million to a $1 million loss as profits at China Bohai Bank (Bohai) reduced �� Restructuring, DVA and Other items totalled $215 million. Other items include $100 million provision for participation in a compensation scheme recommended by the Korean Financial Supervisory Service in respect of the Korea equity linked securities (ELS) portfolio. Restructuring charges were $55 million while movements in Debit Valuation Adjustment (DVA) were a negative $48 million �� Taxation was $519 million on a reported basis, with an underlying effective tax rate of 26.5 per cent compared to the prior year rate of 26.3 per cent �� Underlying return on tangible equity (RoTE) increased by 330 basis points to 15.2 per cent due to higher profits. On a reported basis, RoTE increased 50 basis points to 13.5 per cent with underlying profits in part offset by a negative movement in DVA and the provision in relation to Korea ELS and Restructuring Page 05 Group Chief Financial Officer's review continued Operating income by product2 Q1'24 $million Q1'232 $million Change % Constant currency change�� % Q4'232 $million Change % Constant currency change�� % Transaction Services 1,615 1,572 3 4 1,659 (3) (3) Payments and Liquidity 1,161 1,094 6 7 1,207 (4) (4) Securities & Prime Services 141 141 - 1 140 1 1 Trade & Working Capital 313 337 (7) (2) 312 - - Banking 472 411 15 17 400 18 18 Lending & Financial Solutions 414 353 17 20 358 16 16 Capital Markets & Advisory 58 58 - - 42 38 36 Markets 1,041 922 13 17 534 95 97 Macro Trading 884 786 12 16 463 91 93 Credit Trading 167 121 38 44 92 82 84 Valuation & Other Adj (10) 15 (167) (171) (21) 52 47 Wealth Solutions 616 511 21 23 412 50 50 CCPL & Other Unsecured Lending 287 290 (1) 1 288 - (1) Deposits 908 803 13 14 933 (3) (3) Mortgages & Other Secured Lending 103 161 (36) (34) 57 81 84 Treasury 43 (233) 118 118 (235) 118 119 Other 67 (41) nm3 nm3 (24) nm3 nm3 Total underlying operating income 5,152 4,396 17 20 4,024 28 28 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income 3 Not meaningful The operating income by product commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a constant currency basis, unless otherwise stated. Transaction Services income increased 4 per cent. Payments and Liquidity was up by 7 per cent driven by higher volumes and margin growth from disciplined passthrough rate management in a continued high interest rate environment. This was partly offset by lower Trade & Working Capital income which decreased 2 per cent reflecting margin compression and lower volumes. Banking income increased 17 per cent as Lending & Financial Solutions grew 20 per cent from higher origination and distribution volumes and increased deal completion leading to improved distribution fee income. Capital Market & Advisory income was stable. Markets income was up 17 per cent with broad based growth across all products driven primarily by episodic income from market volatility in select geographies whilst Commodities benefitted from higher metals and energy prices. Wealth Solutions income was up 23 per cent off the back of strong leading indicators with continued momentum in Affluent new to bank client onboarding and net new money which doubled year-on-year to $11 billion. This led to broad-based growth across all products. CCPL & Other Unsecured Lending income was up 1 per cent with volume growth in Personal Loans in part offset by lower Credit Card fee income. Deposits income increased 14 per cent from higher volumes in term deposits, and active passthrough rate management in a higher rate environment. Mortgages & Other Secured Lending income was down 34 per cent on the back of lower mortgage volumes particularly in Korea and Hong Kong, and margin compression which in part reflect the impact of the Best Lending Rate cap in Hong Kong restricting the ability to reprice mortgages despite an increase in funding costs from higher interest rates. Treasury income increased by $276 million benefitting from $158 million translation gains on revaluation of United States Dollar (USD) FX positions in Egypt. The gains arose as the Egypt branch capital is held in USD but the functional currency is the Egyptian Pound (EGP) which has devalued over time and in accordance with IAS 21 'The Effects of Changes in Foreign Exchange Rates' has resulted in a gain on revaluation of monetary assets and liabilities. The income is offset by a loss in the currency translation reserve resulting in no impact on the Group's capital ratios. Future income adjustments could arise if the EGP exchange rate with the USD continues to move. Treasury also benefitted from the roll-off of short-term hedges which contributed a $97 million increase in income year-on-year. The loss-making short-term hedges rolled off in part at the end of February 2023 and the remaining tranche matured at the end of February 2024. Page 06 Group Chief Financial Officer's review continued Other products of $67 million include $76 million from Ghana being deemed a hyperinflationary economy for accounting purposes. The results of Ghana operations have been prepared in accordance with IAS 29 'Financial Reporting in Hyperinflationary Economies' as if the economy had always been hyperinflationary. The results of those operations for the period ended 31 March 2024 are stated in terms of current purchasing power using the consumer price index (CPI), with the corresponding adjustment presented in the profit and loss account. In accordance with IAS 21, the results have been translated and presented in USD at the prevailing rate of exchange on 31 March 2024. Profit before tax by client segment Q1'24 $million Q1'23 $million Change % Constant currency change�� % Q4'23 $million Change % Constant currency change�� % Corporate & Investment Banking2 1,639 1,485 10 13 1,266 29 28 Wealth & Retail Banking2 729 677 8 8 445 64 61 Ventures (112) (103) (9) (9) (133) 16 16 Central & other items (127) (353) 64 64 (522) 76 76 Underlying profit before taxation 2,129 1,706 25 27 1,056 102 100 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 CCIB and CPBB segments have been renamed to CIB and WRB respectively, to reflect the RNS on Presentation of Financial Information issued on 2 April 2024 The client segment commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a constant currency basis, unless otherwise stated. Corporate & Investment Banking (CIB) profit before taxation increased 13 per cent. Income grew 10 per cent with strong double-digit growth in Markets, from higher episodic income and growth in flow income, and Banking, which benefitted from higher origination and distribution volumes. Expenses were 3 per cent higher with a net nil impairment charge. Wealth & Retail Banking (WRB) profit before taxation increased 8 per cent, with income up 10 per cent benefitting from the impact of active passthrough management in Deposits and continued strong momentum in Wealth Solutions, partly offset by lower Mortgage income. Expenses increased 4 per cent while credit impairment charge was $74 million higher following a non-repeat of prior year overlay releases. Ventures loss increased by $9 million to $112 million reflecting the Group's continued investment in transformational digital initiatives. Income increased by $15 million but this was partly offset by an increase in expenses of $11 million. The impairment charge increased $18 million to $28 million reflecting increased bankruptcy related write-offs in Mox and the build-up of expected credit loss provisions as the credit portfolios grew. Central & other items recorded a loss of $127 million just over one third of the prior period loss. Treasury income increased by $280 million mostly from translation gains on revaluation of FX positions in Egypt of $158 million and benefited from the roll-off of the short-term hedges of $97 million. Other products increased by $93 million of which $76 million is related to a hyperinflationary accounting adjustment in Ghana. Expenses increased by $78 million from project costs and other items that are temporarily held centrally before recharging to client segments, whilst there was a credit impairment charge of $12 million from sovereign-related exposures. Associates income reduced by $17 million reflecting lower profits at Bohai. Adjusted net interest income and margin Q1'24 $million Q1'23 $million Change�� % Q4'23 $million Change�� % Adjusted net interest income2 2,429 2,340 4 2,397 1 Average interest-earning assets 553,710 582,557 (5) 558,183 (1) Average interest-bearing liabilities 537,161 538,969 - 537,916 - Gross yield (%)3 5.18 4.37 81 4.98 20 Rate paid (%)3 3.52 2.97 55 3.40 12 Net yield (%)3 1.66 1.40 26 1.58 8 Net interest margin (%)3,4 1.76 1.63 13 1.70 6 1 Variance is better/(worse) other than assets and liabilities which is increase/(decrease) 2 Adjusted net interest income is reported net interest income less funding costs for the trading book, financial guarantee fees and others on interest-earning assets 3 Change is the basis points (bps) difference between the two periods rather than the percentage change 4 Adjusted net interest income divided by average interest-earning assets, annualised 5 Not meaningful Page 07 Group Chief Financial Officer's review continued Adjusted net interest income increased 4 per cent due to 8 per cent increase in the net interest margin which averaged 176 basis points in the quarter, increasing 13 basis points year-on-year and 6 basis points compared to the prior quarter with a benefit from the one month roll-off of the loss-making short-term hedges and improved liabilities mix partly offset by an accounting asymmetry resulting from Treasury management of FX positions. �� Average interest-earning assets decreased 1 per cent in the quarter primarily from lower Treasury assets. Gross yields increased 20 basis points compared to the prior quarter, benefitting from continued higher interest rates, one month benefit from the roll-off of the short-term hedge and improved mix in part from the roll-off of Treasury assets and Mortgages in WRB �� Average interest-bearing liabilities were broadly stable on the prior quarter as growth in customer accounts was offset by lower Treasury balances. The rate paid on liabilities increased 12 basis points compared with the average in the prior quarter, reflecting the impact of interest rate movements which were partly offset by an improved liability mix Credit risk summary Income Statement (Underlying view) Q1'24 $million Q1'23 $million Change1 % Q4'23 $million Change1 % Total credit impairment charge 176 26 nm3 62 184 Of which stage 1 and 22 61 6 nm3 4 nm3 Of which stage 32 115 20 nm3 58 98 1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods 2 Refer to Credit Impairment charge table in Risk review section for reconciliation from underlying to reported credit impairment 3 Not meaningful Balance sheet 31.03.24 $million 31.12.23 $million Change1 % 31.03.23 $million Change1 % Gross loans and advances to customers2 288,643 292,145 (1) 305,975 (6) Of which stage 1 272,133 273,692 (1) 286,335 (5) Of which stage 2 9,520 11,225 (15) 12,216 (22) Of which stage 3 6,990 7,228 (3) 7,424 (6) Expected credit loss provisions (5,240) (5,170) 1 (5,348) (2) Of which stage 1 (478) (430) 11 (507) (6) Of which stage 2 (359) (420) (15) (446) (20) Of which stage 3 (4,403) (4,320) 2 (4,395) - Net loans and advances to customers 283,403 286,975 (1) 300,627 (6) Of which stage 1 271,655 273,262 (1) 285,828 (5) Of which stage 2 9,161 10,805 (15) 11,770 (22) Of which stage 3 2,587 2,908 (11) 3,029 (15) Cover ratio of stage 3 before/after collateral (%)3 63 / 81 60 / 76 3 / 5 59 / 79 4 / 2 Credit grade 12 accounts ($million) 1,009 2,155 (53) 1,642 (39) Early alerts ($million) 4,933 5,512 (11) 5,351 (8) Investment grade corporate exposures (%)3 72 73 (1) 75 (3) 1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods 2 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $11,290 million at 31 March 2024, $13,996 million at 31 December 2023 and $14,398 million at 31 March 2023 3 Change is the percentage points difference between the two points rather than the percentage change Page 08 Group Chief Financial Officer's review continued Asset quality remained resilient in the first quarter, with an improvement in a number of underlying credit metrics. The Group continues to actively manage the credit portfolio whilst remaining alert to a volatile and challenging external environment including increased geopolitical tensions which has led to idiosyncratic stress in a select number of geographies and industry sectors. Credit impairment was a $176 million charge in the quarter, up $150 million year-on-year and up $114 million compared to the prior quarter representing an annualised loan-loss rate of 23 basis points. The increase primarily reflects a lower level of impairment releases. There was a $136 million charge in WRB reflecting a level of charge broadly in line with recent quarters. There was a $28 million charge in Ventures primarily from Mox albeit delinquency and flow rates have improved as a result of adjusted credit criteria. In CIB, there was a net nil charge in the quarter which included a charge of $10 million relating to the China commercial real estate sector, net of a $12 million decrease in the management overlay which now totals $129 million. The Group has provided $1.2 billion in total in relation to the China commercial real estate sector. There was a net charge of $12 million from increases in sovereign related exposures. Excluding the China commercial real estate portfolio and sovereign-related exposures, there was also a net release relating to historical provisions of Corporate exposures. Gross stage 3 loans and advances to customers of $7 billion were 6 per cent lower, as repayments, client upgrades, reduction in exposures and write-offs more than offset new inflows. Credit-impaired loans represent 2.4 per cent of gross loans and advances, broadly flat on the prior quarter. The stage 3 cover ratio of 63 per cent increased by 3 percentage points compared to 31 December 2023, while the cover ratio post collateral at 81 per cent increased by 5 percentage points due to an increase in stage 3 provisions and a reduction in gross stage 3 balances. Credit grade 12 balances decreased $1.1 billion since 31 December 2023 to $1.0 billion mostly from the expected reversal of an existing sovereign related exposure from reverse repurchase agreements to investment securities. Early alert accounts of $4.9 billion decreased by $0.6 billion due to net upgrades relating to a select number of clients. The Group is continuing to carefully monitor its exposures in vulnerable sectors and select geographies, given the unusual stresses caused by the currently difficult macro-economic environment. The proportion of investment grade corporate exposures has decreased by 1 percentage point since 31 December 2023 to 72 per cent. Restructuring, goodwill impairment and other items Q1'24 Q1'23 Q4'23 Restructuring $million Goodwill and other impairment $million DVA $million Other items $million Restructuring $million Goodwill and other impairment $million DVA $million Other items $million Restructuring $million Goodwill and other impairment1 $million DVA $million Other items $million Operating income 38 - (48) (12) 110 - 54 - 48 - 35 262 Operating expenses (111) - - (100) (75) - - - (151) - - - Credit impairment 11 - - - 6 - - - 7 - - - Other impairment - - - - - - - - (3) (153) - - Profit from associates and joint ventures 7 - - - 7 - - - 36 - - - Profit/(loss) before taxation (55) - (48) (112) 48 - 54 - (63) (153) 35 262 1 Goodwill and other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai). The Group's reported performance is adjusted for profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent and/or exceptional transactions that are significant or material in the context of the Group's normal business earnings for the period and items which management and investors would ordinarily identify separately when assessing underlying performance period-by period. Restructuring charge of $55 million reflects the impact of actions to transform the organisation to improve productivity, primarily technology related costs and additional redundancy charges with a small single-digit amount related to the Fit for Growth programme and partly offset by gains on the remaining Principal Finance portfolio. Movements in DVA were negative $48 million driven by the tightening of Group's asset swap spreads on derivative liability exposures. The size of the portfolio subject to DVA did not change materially in the quarter. Page 09 Group Chief Financial Officer's review continued Other items loss of $112 million includes a $100 million provision for participation in a compensation scheme in line with recommendations of the Financial Supervisory Service (FSS) in respect of the Korea ELS portfolio. Standard Chartered Bank Korea (SCBK) sold ELS to customers, the redemption values of which are determined by the performance of various stock indices, with a notional value of approximately $900 million. Due to the performance of the Hang Seng China Enterprise Index (HSCEI), some ELS have matured at a loss and it is anticipated additional customers may redeem ELS at a loss. The provision reflects those ELS portfolio losses for which SCBK is expected to compensate customers based on the level of the HSCEI as of 31 March 2024. The value of anticipated losses is subject to fluctuation as ELS mature on various dates through March 2025. Balance sheet and liquidity 31.03.24 $million 31.12.23 $million Change�� % 31.03.23 $million Change�� % Assets Loans and advances to banks 39,698 44,977 (12) 38,216 4 Loans and advances to customers 283,403 286,975 (1) 300,627 (6) Other assets 489,424 490,892 - 481,835 2 Total assets 812,525 822,844 (1) 820,678 (1) Liabilities Deposits by banks 29,691 28,030 6 26,889 10 Customer accounts 459,386 469,418 (2) 462,169 (1) Other liabilities 272,609 275,043 (1) 281,609 (3) Total liabilities 761,686 772,491 (1) 770,667 (1) Equity 50,839 50,353 1 50,011 2 Total equity and liabilities 812,525 822,844 (1) 820,678 (1) Advances-to-deposits ratio (%)�� 54.3% 53.3% 56.2% Liquidity coverage ratio (%) 146% 145% 161% 1 Variance is increase/(decrease)comparing current reporting period to prior reporting periods 2 The Group now excludes $21,258 million held with central banks (31.12.23: $20,710 million, 31.03.23: $24,173 million) that has been confirmed as repayable at the point of stress. Advances exclude reverse repurchase agreement and other similar secured lending of $11,290 million (31.12.23: $13,996 million) and include loans and advances to customers held at fair value through profit or loss of $7,950 million (31.12.23: $7,212 million). Deposits include customer accounts held at fair value through profit or loss of $17,595 million (31.12.23: $17,248 million) The Group's balance sheet remains strong, liquid and well diversified. �� Loans and advances to customers decreased by $4 billion or 1 per cent from 31 December 2023 to $283 billion and up $4 billion on an underlying basis with growth in CIB offset by an expected decline in Mortgages in WRB. The underlying increase excludes the impact of a $4 billion reduction from Treasury and securities based loans held to collect and $4 billion reduction from currency translation �� Customer accounts of $459 billion decreased by $10 billion or 2 per cent from 31 December 2023. Excluding a $4 billion reduction from currency translation, customer accounts reduced by $6 billion, or 1 per cent, with lower balances in CIB CASA from month-end client activity, substantially returned post quarter end, partly offset by an increase in term deposits in WRB �� Other assets were broadly flat on the prior quarter with increased financial assets held at fair value through profit or loss reflecting growth in the Trading book offset by a decrease in cash and balances held at central banks and lower derivative balances. Other liabilities decreased 1 per cent from a decrease in derivative liability balances The advances-to-deposits ratio increased to 54.3 per cent from 53.3 per cent as at 31 December 2023. The point-in-time liquidity coverage ratio increased 1 percentage point in the quarter to 146 per cent and remains well above the minimum regulatory requirement. Page 10 Group Chief Financial Officer's review continued Risk-weighted assets 31.03.24 $million 31.12.23 $million Change�� % 31.03.23 $million Change�� % By risk type Credit risk 193,009 191,423 1 200,632 (4) Operational risk 29,805 27,861 7 27,861 7 Market risk 29,302 24,867 18 22,400 31 Total RWAs 252,116 244,151 3 250,893 0 1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods Total risk-weighted assets of $252.1 billion increased $8 billion or 3 per cent from 31 December 2023. �� Credit risk RWA increased by $1.6 billion in the first quarter to $193 billion. There was a $2.1 billion increase from asset mix reflecting a reduction in lower risk-weight Treasury assets and mortgages in WRB offset by growth in CIB assets. There was also an $1.3 billion increase from model and methodology changes, partly offset by a $2.2 billion reduction from currency translation �� Operational risk RWA is mechanically higher by $1.9 billion due to an increase in average income as measured over a rolling three-year time horizon, with higher 2023 income replacing lower 2020 income �� Market risk RWA increased $4.4 billion to $29.3 billion as RWA was deployed to help clients capture opportunities in Markets Capital base and ratios 31.03.24 $million 31.12.23 $million Change�� % 31.03.23 $million Change�� % CET1 capital 34,279 34,314 - 34,402 - Additional Tier 1 capital (AT1) 6,486 5,492 18 5,492 18 Tier 1 capital 40,765 39,806 2 39,894 2 Tier 2 capital 11,773 11,935 (1) 12,424 (5) Total capital 52,538 51,741 2 52,318 - CET1 capital ratio(%)�� 13.6 14.1 (0.5) 13.7 (0.1) Total capital ratio(%)�� 20.8 21.2 (0.4) 20.9 (0.1) Leverage ratio (%)�� 4.8 4.7 0.1 4.7 0.1 1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods 2 Change is percentage points difference between two points rather than percentage change The Group's CET1 ratio of 13.6 per cent was broadly stable post the full impact of the $1 billion share buyback announced in February 2024, underlying profit accretion was offset by increased RWAs. The CET1 ratio remains 3.1 percentage points above the Group's latest regulatory minimum of 10.5 per cent. The 58 basis points of CET1 capital accretion from profits was offset by 57 basis points impact from an increase in RWA. A further 11 basis points uplift was the result of other comprehensive income from fair value gains and regulatory capital adjustments whilst an FX impact decreased the ratio by 7 basis points. The Group is part way through the $1 billion share buyback programme which it announced on 23 February 2024, and by 31 March 2024 had spent $437 million purchasing 52 million ordinary shares, reducing the share count by approximately 2 per cent. Even though the share buyback was still ongoing on 31 March 2024, the entire $1 billion is deducted from CET1 in the period. The Group is accruing a provisional interim 2024 ordinary share dividend over the first half of 2024, which is calculated formulaically at one third of the ordinary dividend paid in 2023 or 9 cents a share. Half of this amount was accrued in the first quarter and combined with payments due to AT1 and preference shareholders reduced the CET1 ratio by 10 basis points. The Group's leverage ratio of 4.8 per cent is 7 basis points higher than as at 31 December 2023. This is primarily driven by increased Tier 1 capital following a $1 billion issuance of AT1 instruments in the first quarter. This was in part offset by increased leverage exposures as a reduction in benefits from regulatory adjustments more than offset a reduction in balance sheet assets. The Group's leverage ratio remains significantly above its minimum requirement of 3.7 per cent. Page 11 Group Chief Financial Officer's review continued Outlook The start to the year has been strong and the momentum we see across our businesses gives us confidence in the delivery of our financial targets set out in February. We are maintaining our 2024 guidance: �� Operating income to increase around the top of 5-7 per cent range in 2024, excluding the two notable items in Q1'24 �� Net interest income for 2024 of $10 billion to $10.25 billion, at constant currency �� Positive income-to-cost jaws, excluding UK bank levy, at constant currency in 2024 �� Low single-digit percentage growth in loans and advances to customers and RWA in 2024 �� Continue to expect loan-loss ratio to normalise towards the historical through the cycle 30 to 35 basis points range �� Continue to operate dynamically within the full 13-14 per cent CET1 ratio target range �� Continue to increase full-year dividend per share over time �� RoTE increasing steadily from 10 per cent, targeting 12 per cent in 2026 and to progress thereafter Diego De Giorgi Group Chief Financial Officer 02 May 2024 Page 12 Supplementary financial information Underlying performance by client segment Q1'24 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Operating income 3,115 1,917 32 88 5,152 External 2,545 888 32 1,687 5,152 Inter-segment 570 1,029 - (1,599) - Operating expenses (1,423) (1,047) (113) (203) (2,786) Operating profit/(loss) before impairment losses and taxation 1,692 870 (81) (115) 2,366 Credit impairment - (136) (28) (12) (176) Other impairment (53) (5) - (2) (60) Profit from associates and joint ventures - - (3) 2 (1) Underlying profit/(loss) before taxation 1,639 729 (112) (127) 2,129 Restructuring (11) (19) - (25) (55) DVA (48) - - - (48) Other Items - (100) - (12) (112) Reported profit/(loss) before taxation 1,580 610 (112) (164) 1,914 Total assets 415,090 124,456 4,916 268,063 812,525 Of which: loans and advances to customers1 190,083 122,089 1,024 25,725 338,921 loans and advances to customers 134,578 122,078 1,024 25,723 283,403 loans held at fair value through profit or loss 55,505 11 - 2 55,518 Total liabilities 450,072 201,870 3,967 105,777 761,686 Of which: customer accounts1 310,079 197,121 3,694 10,610 521,504 Risk-weighted assets 150,600 52,706 2,084 46,726 252,116 Income return on risk-weighted assets (%) 8.5 14.7 7.2 0.7 8.3 Underlying return on tangible equity (%) 23.0 28.8 nm�� (16.7) 15.2 Cost to income ratio (excluding bank levy) (%) 45.7 54.6 nm�� nm�� 54.1 Q1'23 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Operating income 2,892 1,772 17 (285) 4,396 External 2,313 1,126 17 940 4,396 Inter-segment 579 646 - (1,225) - Operating expenses (1,415) (1,033) (102) (125) (2,675) Operating profit/(loss) before impairment losses and taxation 1,477 739 (85) (410) 1,721 Credit impairment 8 (62) (10) 38 (26) Other impairment - - - - - Profit from associates and joint ventures - - (8) 19 11 Underlying profit/(loss) before taxation 1,485 677 (103) (353) 1,706 Restructuring 39 (2) - 11 48 DVA 54 - - - 54 Reported profit/(loss) before taxation 1,578 675 (103) (342) 1,808 Total assets 394,873 130,669 2,683 292,453 820,678 Of which: loans and advances to customers1 181,335 128,102 812 36,816 347,065 loans and advances to customers 134,927 128,079 812 36,809 300,627 loans held at fair value through profit or loss 46,408 23 - 7 46,438 Total liabilities 476,993 188,050 1,955 103,669 770,667 Of which: customer accounts1 335,996 182,856 1,767 5,792 526,411 Risk-weighted assets 148,550 50,621 1,627 50,095 250,893 Income return on risk-weighted assets (%) 8.0 14.1 5.5 (2.3) 7.1 Underlying return on tangible equity (%) 21.2 28.0 nm�� (25.8) 11.9 Cost to income ratio (excluding bank levy) (%) 48.9 58.3 nm�� nm�� 60.9 1 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 2 Not meaningful Page 13 Supplementary financial information continued Corporate & Investment Banking Q1'24 $million Q1'23 $million Change2 % Constant currency change1,2 % Q4'23 $million Change2 % Constant currency change1,2 % Operating income 3,115 2,892 8 10 2,581 21 21 Transaction Services�� 1,603 1,561 3 4 1,647 (3) (3) Payments and Liquidity 1,161 1,094 6 7 1,207 (4) (4) Securities & Prime Services 141 141 - 1 140 1 1 Trade & Working Capital 301 326 (8) (2) 300 - - Banking�� 472 411 15 17 400 18 18 Lending & Financial Solutions 414 353 17 20 358 16 16 Capital Markets & Advisory 58 58 - - 42 38 36 Markets�� 1,041 922 13 17 534 95 97 Macro Trading 884 786 12 16 463 91 93 Credit Trading 167 121 38 44 92 82 84 Valuation & Other Adj (10) 15 (167) (171) (21) 52 47 Other (1) (2) 50 50 - nm7 nm7 Operating expenses (1,423) (1,415) (1) (3) (1,422) - (1) Operating profit before impairment losses and taxation 1,692 1,477 15 17 1,159 46 44 Credit impairment - 8 (100) nm7 105 (100) (103) Other impairment (53) - nm7 nm7 2 nm7 nm7 Underlying profit before taxation 1,639 1,485 10 13 1,266 29 28 Restructuring (11) 39 (128) (131) (52) 79 78 DVA (48) 54 (189) (189) 35 nm7 nm7 Other items - - nm7 nm7 262 (100) (100) Reported profit before taxation 1,580 1,578 - 3 1,511 5 4 Total assets 415,090 394,873 5 7 403,058 3 4 Of which: loans and advances to customers4 190,083 181,335 5 7 189,395 - 2 Total liabilities 450,072 476,993 (6) (5) 464,968 (3) (3) Of which: customer accounts4 310,079 335,996 (8) (7) 328,211 (6) (5) Risk-weighted assets 150,600 148,550 1 nm7 141,979 6 nm7 Income return on risk-weighted assets (%)5 8.5 8.0 50bps nm7 7.3 120bps nm7 Underlying return on tangible equity (%)5 23.0 21.2 180bps nm7 18.5 450bps nm7 Cost to income ratio (%)6 45.7 48.9 3.2 3.3 55.1 9.4 8.9 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease) 3 Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income 4 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 5 Change is the basis points (bps) difference between the two periods rather than the percentage change 6 Change is the percentage points difference between the two periods rather than the percentage change 7 Not meaningful Page 14 Supplementary financial information continued Performance highlights �� Underlying profit before tax of $1,639 million was up 13 per cent at constant currency (ccy) mainly driven by higher income partly offset by higher expenses and other impairment �� Underlying operating income of $3,115 million was up 10 per cent at ccy, driven by strong double-digit growth in Markets with broad based growth across all products driven primarily by episodic income from volatility in select markets, whilst Commodities benefitted from higher metals and energy prices. Banking also performed strongly with Lending & Financial Solutions up 20 per cent from higher origination and distribution volumes. Transaction Services income increased 4 per cent, within which, Payments and Liquidity was up 7 per cent driven by higher volumes and margin growth from disciplined passthrough rates management, in a continued higher interest rate environment. This was partly offset by lower Trade & Working Capital income which decreased 2 per cent reflecting margin compression and lower volumes �� Underlying operating expenses increased 3 per cent at ccy largely due to inflation and business growth initiatives �� Credit impairment was a net nil charge in the quarter, as the charge of $10 million relating to the China commercial real estate sector was offset by releases in other parts of the portfolio. Other impairment was primarily related to the write-off of software assets �� Risk-weighted assets (RWA) of $151 billion was up $9 billion since 31 December 2023 mainly from increased market risk RWA deployed to help clients realise income opportunities within Markets and mechanically higher operational risk RWA, and corporate lending asset growth �� RoTE increased 1.8 percentage points to 23.0 per cent from 21.2 per cent in Q1'23 Page 15 Supplementary financial information continued Wealth & Retail Banking Q1'24 $million Q1'233 $million Change2 % Constant currency change1,2 % Q4'233 $million Change2 % Constant currency change1,2 % Operating income 1,917 1,772 8 10 1,701 13 13 Transaction Services3 12 11 9 9 12 - - Payments and Liquidity - - nm7 nm7 - nm7 nm7 Trade & Working Capital 12 11 9 9 12 - - Wealth Solutions�� 616 511 21 23 412 50 50 CCPL & Other Unsecured Lending 260 275 (5) (3) 259 - - Deposits3 917 813 13 14 951 (4) (4) Mortgages & Other Secured Lending3 103 161 (36) (34) 57 81 84 Other 9 1 nm7 nm7 10 (10) - Operating expenses (1,047) (1,033) (1) (4) (1,121) 7 6 Operating profit before impairment losses and taxation 870 739 18 18 580 50 49 Credit impairment (136) (62) (119) (127) (131) (4) (5) Other impairment (5) - nm7 nm7 (4) (25) (67) Underlying profit before taxation 729 677 8 8 445 64 61 Restructuring (19) (2) nm7 nm7 (27) 30 25 Other items (100) - nm7 nm7 - nm7 nm7 Reported profit before taxation 610 675 (10) (10) 418 46 43 Total assets 124,456 130,669 (5) (3) 128,768 (3) (1) Of which: loans and advances to customers4 122,089 128,102 (5) (3) 126,117 (3) (1) Total liabilities 201,870 188,050 7 9 200,263 1 2 Of which: customer accounts4 197,121 182,856 8 9 195,678 1 2 Risk-weighted assets 52,706 50,621 4 nm7 51,342 3 nm7 Income return on risk-weighted assets (%)5 14.7 14.1 60bps nm7 13.2 150bps nm7 Underlying return on tangible equity (%)5 28.8 28.0 80bps nm7 17.9 1,090bps nm7 Cost to income ratio (%)6 54.6 58.3 3.7 3.2 65.9 11.3 10.9 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease) 3 Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income 4 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 5 Change is the basis points (bps) difference between the two periods rather than the percentage change 6 Change is the percentage points difference between the two periods rather than the percentage change 7 Not meaningful Performance highlights �� Underlying profit before tax of $729 million was up 8 per cent at constant currency (ccy) mainly driven by higher income partly offset by higher expenses and impairments �� Underlying operating income of $1,917 million was up 10 per cent at ccy off the back of strong leading indicators with continued momentum in Affluent new to bank client onboarding and net new money which doubled year-on-year to $11 billion. This led to double digit growth across all products �� Underlying operating expenses increased 4 per cent at ccy, mainly from inflation and investment in business growth initiatives, including relationship managers �� Credit impairment of $136 million increased $74 million reflecting a level of charge broadly in line with recent quarters �� Customer accounts increased 2 per cent at ccy since 31 December 2023 due to strong growth driven by Affluent clients �� RoTE increased 80 basis points to 28.8 per cent from 28.0 per cent in Q1'23 Page 16 Supplementary financial information continued Ventures Q1'24 $million Q1'23 $million Change2 % Constant currency change1,2 % Q4'23 $million Change2 % Constant currency change1,2 % Operating income 32 17 88 88 32 - (3) Of which: SCV 3 3 - - 6 (50) (57) Of which: Digital Banks6 29 14 107 107 26 12 12 CCPL & Other Unsecured Lending 27 15 80 80 29 (7) (7) Deposits (9) (10) 10 10 (18) 50 50 Treasury 1 5 (80) (80) 10 (90) (89) Other 13 7 86 86 11 18 - Operating expenses (113) (102) (11) (11) (109) (4) (3) Operating loss before impairment losses and taxation (81) (85) 5 5 (77) (5) (5) Credit impairment (28) (10) (180) (180) (32) 13 13 Other impairment - - nm7 nm7 (17) nm7 nm7 Profit from associates and joint ventures (3) (8) 63 63 (7) 57 57 Underlying loss before taxation (112) (103) (9) (9) (133) 16 16 Restructuring - - nm7 nm7 (3) 100 100 Reported loss before taxation (112) (103) (9) (9) (136) 18 18 Total assets 4,916 2,683 83 94 4,009 23 30 Of which: loans and advances to customers3 1,024 812 26 26 1,035 (1) - Total liabilities 3,967 1,955 103 104 3,096 28 30 Of which: customer accounts3 3,694 1,767 109 110 2,825 31 32 Risk-weighted assets 2,084 1,627 28 nm7 1,923 (8) nm7 Income return on risk-weighted assets (%)4 7.2 5.5 170bps nm7 7.9 (70)bps nm7 Underlying return on tangible equity (%)4 nm7 nm7 nm7 nm7 nm7 nm7 nm7 Cost to income ratio (%)5 nm7 nm7 nm7 nm7 nm7 nm7 nm7 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease) 3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 4 Change is the basis points (bps) difference between the two periods rather than the percentage change 5 Change is the percentage points difference between the two periods rather than the percentage change 6 Digital Banks income include Mox and Trust bank 7 Not meaningful Performance highlights �� Underlying loss before tax increased $9 million to $112 million reflecting the Group's continued investment in transformational digital initiatives. Income almost doubled to $32 million but this increase was offset by increased expenses �� The impairment charge increased $18 million to $28 million reflecting increased bankruptcy related write-offs in Mox and the build of expected credit loss provisions as the credit portfolios grew �� Loans and advances to customers of $1 billion increased 26 per cent year-on-year (YoY), whilst customer accounts of $3.7 billion increased 110 per cent YoY, with strong growth in the two digital banks, Mox and Trust Page 17 Supplementary financial information continued Central & other items Q1'24 $million Q1'23 $million Change2 % Constant currency change1,2 % Q4'23 $million Change2 % Constant currency change1,2 % Operating income 88 (285) 131 132 (290) 130 132 Treasury 42 (238) 118 118 (245) 117 118 Other 46 (47) 198 nm7 (45) nm7 nm7 Operating expenses (203) (125) (62) (69) (210) 3 8 Operating loss before impairment losses and taxation (115) (410) 72 72 (500) 77 77 Credit impairment (12) 38 (132) (134) (4) nm7 nm7 Other impairment (2) - nm7 nm7 (22) 91 91 Profit from associates and joint ventures 2 19 (89) (89) 4 (50) (50) Underlying loss before taxation (127) (353) 64 64 (522) 76 76 Restructuring (25) 11 nm7 nm7 19 nm7 nm7 Goodwill & other impairment6 - - nm7 nm7 (153) 100 100 Other items (12) - nm7 nm7 - nm7 nm7 Reported loss before taxation (164) (342) 52 51 (656) 75 75 Total assets 268,063 292,453 (8) (7) 287,009 (7) (5) Of which: loans and advances to customers3 25,725 36,816 (30) (29) 28,939 (11) (9) Total liabilities 105,777 103,669 2 3 104,164 2 2 Of which: customer accounts3 10,610 5,792 83 87 7,908 34 35 Risk-weighted assets 46,726 50,095 (7) nm�� 48,907 (4) nm�� Income return on risk-weighted assets (%)4 0.7 (2.3) 300bps nm7 (2.4) 310bps nm7 Underlying return on tangible equity (%)4 (16.7) (25.7) 900bps nm7 (18.8) 210bps nm7 Cost to income ratio (%) (excluding UK bank levy)5 nm7 nm7 nm7 nm7 nm7 nm7 nm7 1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods 2 Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease) 3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 4 Change is the basis points (bps) difference between the two periods rather than the percentage change 5 Change is the percentage points difference between the two periods rather than the percentage change 6 Goodwill and other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai) 7 Not meaningful Performance highlights �� Underlying loss before tax of $127 million just over one-third of the prior period loss with higher income partly offset by $78 million higher expenses from project costs and other items that are temporarily held centrally before recharging to client segments whilst there was a credit impairment charge of $12 million from sovereign-related exposures. Associate income reduced by $17 million reflecting lower profits at China Bohai Bank �� Underlying operating income of $88 million in Q1'24 is $373 million better year-on-year. Treasury income increased by $280 million mostly from translation gains on revaluation of FX positions in Egypt of $158 million and benefits from the roll-off of the short-term hedges of $97 million. Other products increased $93 million of which $76 million relates to a hyperinflationary accounting adjustment in Ghana Page 18 Supplementary financial information continued Underlying performance by key geography Q1'24 Hong Kong $million Korea $million China $million Taiwan $million Singapore $million India $million UAE $million UK $million US $million Other2,3 $million Group $million Operating income 1,145 296 322 159 670 337 237 83 256 1,647 5,152 Operating expenses (474) (171) (213) (83) (306) (220) (106) (232) (171) (810) (2,786) Operating profit/(loss) before impairment losses and taxation 671 125 109 76 364 117 131 (149) 85 837 2,366 Credit impairment (39) (7) (44) (10) 3 (11) (3) (14) 1 (52) (176) Other impairment (12) - (5) (1) (8) (6) (3) (16) (4) (5) (60) Profit from associates and joint ventures - - 2 - - - - (2) - (1) (1) Underlying profit/(loss) before taxation 620 118 62 65 359 100 125 (181) 82 779 2,129 Total assets employed 198,501 51,199 43,959 22,209 106,277 35,858 24,559 141,084 74,178 114,701 812,525 Of which: loans and advances to customers1 88,136 29,721 17,525 11,177 63,469 14,685 9,114 28,114 24,325 52,657 338,923 Total liabilities employed 181,755 42,146 37,470 20,781 112,289 27,487 17,715 102,065 62,176 157,802 761,686 Of which: customer accounts1 152,489 32,814 27,249 18,077 88,089 20,231 13,535 76,916 32,730 59,374 521,504 Q1'23 Hong Kong $million Korea $million China $million Taiwan $million Singapore $million India $million UAE $million UK $million US $million Other3 $million Group $million Operating income 1,036 312 283 146 638 311 214 77 234 1,145 4,396 Operating expenses (485) (179) (222) (80) (290) (208) (95) (203) (170) (743) (2,675) Operating profit/(loss) before impairment losses and taxation 551 133 61 66 348 103 119 (126) 64 402 1,721 Credit impairment (22) (15) (9) (22) 17 (3) 2 3 7 16 (26) Other impairment - - - - - - (1) (8) - 9 - Profit from associates and joint ventures - - 17 - - - - - - (6) 11 Underlying profit/(loss) before taxation 529 118 69 44 365 100 120 (131) 71 421 1,706 Total assets employed 174,341 63,736 42,880 21,728 94,292 32,852 20,215 174,342 81,976 114,316 820,678 Of which: loans and advances to customers1 84,891 42,426 15,610 11,186 62,777 14,350 9,010 38,615 20,562 47,638 347,065 Total liabilities employed 165,874 54,131 34,713 20,171 103,860 25,798 15,201 138,910 67,774 144,235 770,667 Of which: customer accounts1 138,604 41,163 26,554 18,724 78,810 19,311 12,128 99,974 34,022 57,121 526,411 1 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 2 Other includes notable items of Egypt revaluation and Ghana hyperinflation 3 Underlying performance by key geography now include "Other", as a consolidation of all the other geographies to reflect the RNS Presentation of Financial Information we issued on 2 April 2024 Page 19 Supplementary financial information continued Q4'23 Hong Kong $million Korea $million China $million Taiwan $million Singapore $million India $million UAE $million UK $million US $million Other2 $million Group $million Operating income 1,008 217 275 125 557 269 182 (103) 206 1,288 4,024 Operating expenses (489) (192) (234) (84) (312) (203) (93) (218) (149) (888) (2,862) Operating profit/(loss) before impairment losses and taxation 519 25 41 41 245 66 89 (321) 57 400 1,162 Credit impairment (60) (3) (33) (9) (26) (18) 3 7 2 75 (62) Other impairment (16) 1 (4) (5) (11) (10) (5) (15) (9) 33 (41) Profit from associates and joint ventures - - (1) - - - - - - (2) (3) Underlying profit/(loss) before taxation 443 23 3 27 208 38 87 (329) 50 506 1,056 Total assets employed 190,484 56,638 41,508 21,638 102,724 33,781 20,376 149,982 88,113 117,600 822,844 Of which: loans and advances to customers1 87,590 33,443 15,882 11,634 62,030 13,832 8,495 31,067 27,434 54,079 345,486 Total liabilities employed 183,112 46,666 38,252 20,365 109,825 26,532 17,214 92,168 72,583 165,774 772,491 Of which: customer accounts1 155,446 37,032 31,211 18,621 86,282 18,709 13,924 72,610 40,846 59,941 534,622 1 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements 2 Underlying performance by key geography now include "Other", as a consolidation of all the other geographies to reflect the RNS Presentation of Financial Information we issued on 2 April 2024 Page 20 Supplementary financial information continued Quarterly underlying operating income by product Q1'24 $million Q4'231 $million Q3'231 $million Q2'231 $million Q1'231 $million Q4'221 $million Q3'221 $million Q2'221 $million Transaction Services1 1,615 1,659 1,667 1,620 1,572 1,416 1,221 964 Payments and Liquidity 1,161 1,207 1,196 1,148 1,094 962 758 515 Securities & Prime Services 141 140 138 131 141 126 120 104 Trade & Working Capital 313 312 333 341 337 328 343 345 Banking1 472 400 447 447 411 400 459 429 Lending & Financial Solutions 414 358 393 396 353 366 410 380 Capital Market & Advisory 58 42 54 51 58 34 49 49 Markets1 1,041 534 716 877 922 662 907 801 Macro Trading 884 463 595 776 786 536 725 745 Credit Trading 167 92 122 116 121 123 163 79 Valuation & Other Adj (10) (21) (1) (15) 15 3 19 (23) Wealth Solutions1 616 412 526 495 511 358 454 456 CCPL & Other Unsecured Lending 287 288 297 286 290 294 298 310 Deposits1 908 933 953 881 803 833 640 364 Mortgages & Other Secured Lending1 103 57 69 113 161 55 191 291 Treasury 43 (235) (274) (160) (233) (173) (5) 201 Other 67 (24) 2 (4) (41) (80) (27) (33) Total underlying operating income 5,152 4,024 4,403 4,555 4,396 3,765 4,138 3,783 1 Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income Page 21 Supplementary financial information continued Earnings per ordinary share Q1'24 $million Q1'23 $million Change % Q4'23 $million Change % Profit for the period attributable to equity holders 1,395 1,344 4 938 49 Non-controlling interest 8 (3) nm4 (2) nm4 Dividend payable on preference shares and AT1 classified as equity (180) (178) (1) (29) nm4 Profit for the period attributable to ordinary shareholders 1,223 1,163 5 907 35 Items normalised: Restructuring 55 (48) nm4 63 (13) Goodwill and other impairment1 - - nm4 1531 nm4 DVA 48 (54) nm4 (35) nm4 Net losses / (gains) on sale of businesses 12 - nm4 (262) nm4 Other items3 100 - nm4 - nm4 Tax on normalised items (45) 15 nm4 (17) (165) Underlying profit 1,393 1,076 29 809 72 Basic - Weighted average number of shares (millions) 2,632 2,860 (8) 2,664 (1) Diluted - Weighted average number of shares (millions) 2,692 2,921 (8) 2,723 (1) Basic earnings per ordinary share (cents)�� 46.5 40.7 5.8 34.0 12.5 Diluted earnings per ordinary share (cents)�� 45.4 39.8 5.6 33.3 12.1 Underlying basic earnings per ordinary share (cents)�� 52.9 37.6 15.3 30.4 22.5 Underlying diluted earnings per ordinary share (cents)�� 51.7 36.8 14.9 29.7 22.0 1 Goodwill and Other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai) 2 Change is the percentage points difference between the two periods rather than the percentage change 3 Other items include $100m provision relating to Korea ELS 4 Not meaningful Page 22 Supplementary financial information continued Return on Tangible Equity Q1'24 $million Q1'23 $million Change % Q4'23 $million Change % Average parent company Shareholders' Equity 44,188 43,643 1 43,456 2 Less Average preference share capital and share premium (1,494) (1,494) - (1,494) - Less Average intangible assets (6,184) (5,880) (5) (6,106) (1) Average Ordinary Shareholders' Tangible Equity 36,510 36,269 1 35,856 2 Profit for the period attributable to equity holders 1,395 1,344 4 938 49 Non-controlling interests 8 (3) nm3 (2) nm3 Dividend payable on preference shares and AT1 classified as equity (180) (178) (1) (29) nm3 Profit for the period attributable to ordinary shareholders 1,223 1,163 5 907 35 Items normalised: Restructuring 55 (48) nm3 63 (13) Goodwill and Other impairment - - nm3 1531 nm3 Net losses/(gains) on sale of businesses 12 - nm3 (262) nm3 Ventures FVOCI unrealised (gains)/losses net of tax (13) (9) (44) 37 nm3 DVA 48 (54) nm3 (35) nm3 Other items2 100 - nm3 - nm3 Tax on normalised items (45) 15 nm3 (17) (165) Underlying profit for the period attributable to ordinary shareholders 1,380 1,067 29 846 63 Underlying Return on Tangible Equity 15.2% 11.9% 330bps 9.4% 580bps Reported Return on Tangible Equity 13.5% 13.0% 50bps 10.0% 350bps 1 Goodwill and Other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai) 2 Other items include $100m provision relating to Korea ELS 3 Not meaningful Net Tangible Asset Value per Share 31.03.24 $million 31.03.23 $million Change % 31.12.23 $million Change % Parent company shareholders' equity 43,929 44,125 - 44,445 (1) Less Preference share premium (1,494) (1,494) - (1,494) - Less Intangible assets (6,153) (5,891) (4) (6,214) 1 Net shareholders tangible equity 36,282 36,740 (1) 36,737 (1) Ordinary shares in issue, excluding own shares (millions) 2,610 2,833 (8) 2,637 (1) Net Tangible Asset Value per share (cents)1 1,390 1,297 93 1,393 (3) 1 Change is cents difference between the two periods rather than the percentage change Page 23 Underlying versus reported results reconciliations Reconciliations between underlying and reported results are set out in the tables below: Operating income by client segment Q1'24 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Underlying operating income 3,115 1,917 32 88 5,152 Restructuring 21 11 - 6 38 DVA (48) - - - (48) Other items - - - (12) (12) Reported operating income 3,088 1,928 32 82 5,130 Q1'23 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Underlying operating income 2,892 1,772 17 (285) 4,396 Restructuring 95 13 - 2 110 DVA 54 - - - 54 Other items - - - - - Reported operating income 3,041 1,785 17 (283) 4,560 Net interest income and non NII Q1'24 Q1'23 Underlying $million Restructuring $million Adjustment for trading book funding cost and others $million Reported $million Underlying $million Restructuring $million Adjustment for trading book funding cost and others $million Reported $million Net interest income1 2,419 10 (857) 1,572 2,341 (1) (334) 2,006 Non NII1 2,733 (32) 857 3,558 2,055 165 334 2,554 Total income 5,152 (22) - 5,130 4,396 164 - 4,560 1 To be consistent with how we the compute Net Interest Margin, we have changed our definition of Underlying Net Interest Income (NII) and Underlying non NII. The adjustments made to NIM, including Interest expense relating to funding our trading book, will now be shown against Underlying non NII rather than Underlying NII. There is no impact on total income Page 24 Underlying versus reported results reconciliations continued Profit before taxation (PBT) Q1'24 Underlying $million Restructuring $million Net loss on businesses disposed/ held for sale $million Other items $million DVA $million Reported $million Operating income 5,152 38 (12) - (48) 5,130 Operating expenses (2,786) (111) - (100) - (2,997) Operating profit/(loss) before impairment losses and taxation 2,366 (73) (12) (100) (48) 2,133 Credit impairment (176) 11 - - - (165) Other impairment (60) - - - - (60) Profit from associates and joint ventures (1) 7 - - - 6 Profit/(loss) before taxation 2,129 (55) (12) (100) (48) 1,914 Q1'23 Underlying $million Restructuring $million Net gain on businesses disposed/ held for sale $million Other items $million DVA $million Reported $million Operating income 4,396 110 - - 54 4,560 Operating expenses (2,675) (75) - - - (2,750) Operating profit/(loss) before impairment losses and taxation 1,721 35 - - 54 1,810 Credit impairment (26) 6 - - - (20) Other impairment - - - - - - Profit from associates and joint ventures 11 7 - - - 18 Profit/(loss) before taxation 1,706 48 - - 54 1,808 Profit before taxation (PBT) by client segment Q1'24 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Operating income 3,115 1,917 32 88 5,152 External 2,545 888 32 1,687 5,152 Inter-segment 570 1,029 - (1,599) - Operating expenses (1,423) (1,047) (113) (203) (2,786) Operating profit/(loss) before impairment losses and taxation 1,692 870 (81) (115) 2,366 Credit impairment - (136) (28) (12) (176) Other impairment (53) (5) - (2) (60) Profit from associates and joint ventures - - (3) 2 (1) Underlying profit/(loss) before taxation 1,639 729 (112) (127) 2,129 Restructuring (11) (19) - (25) (55) DVA (48) - - - (48) Other items - (100) - (12) (112) Reported profit/(loss) before taxation 1,580 610 (112) (164) 1,914 Page 25 Underlying versus reported results reconciliations continued Q1'23 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Operating income 2,892 1,772 17 (285) 4,396 External 2,313 1,126 17 940 4,396 Inter-segment 579 646 - (1,225) - Operating expenses (1,415) (1,033) (102) (125) (2,675) Operating profit/(loss) before impairment losses and taxation 1,477 739 (85) (410) 1,721 Credit impairment 8 (62) (10) 38 (26) Profit from associates and joint ventures - - (8) 19 11 Underlying profit/(loss) before taxation 1,485 677 (103) (353) 1,706 Restructuring 39 (2) - 11 48 DVA 54 - - - 54 Reported profit/(loss) before taxation 1,578 675 (103) (342) 1,808 Return on tangible equity (RoTE) Q1'24 Corporate & Investment Banking % Wealth & Retail Banking % Ventures % Central & other items % Total % Underlying RoTE 23.0 28.8 nm�� (16.7) 15.2 Restructuring Of which: Income 0.4 0.6 - 0.3 0.4 Of which: Expenses (0.8) (1.6) - (2.1) (1.2) Of which: Credit impairment 0.2 - - - 0.1 Of which: Other impairment - - - - - Of which: Profit from associates and joint ventures - - - 0.4 0.1 Net loss on businesses disposed/held for sale1 - - - (0.7) (0.1) Ventures FVOCI Unrealised gains / (losses) net of taxes - - - - 0.1 DVA (0.9) - - - (0.5) Other items - (5.3) - - (1.1) Tax on normalised items 0.3 1.6 - - 0.5 Reported RoTE 22.2 24.1 nm�� (18.8) 13.5 Q1'23 Corporate & Investment Banking % Wealth & Retail Banking % Ventures % Central & other items % Total % Underlying RoTE 21.2 28.0 nm�� (25.7) 11.9 Restructuring Of which: Income 1.8 0.7 - 0.1 1.4 Of which: Expenses (1.1) (0.8) - (0.2) (0.8) Of which: Credit impairment - - - 0.2 0.1 Of which: Other impairment (0.1) - - 0.1 - Of which: Profit from associates and joint ventures - - - 0.4 0.1 Ventures FVOCI Unrealised gains / (losses) net of taxes - - - - (0.1) DVA 1.0 - - - 0.6 Tax on normalised items (0.3) - nm�� 0.4 (0.2) Reported RoTE 22.5 27.9 nm�� (24.7) 13.0 1 Net loss on businesses includes the loss of $12 million in relation to a sale of a portfolio of Aviation loans 2 Not meaningful 3 Segmental RoTE is the ratio of the current year's underlying profit to the average tangible equity. Average Tangible Equity has been derived based on average RWA Page 26 Underlying versus reported results reconciliations continued Earnings per ordinary share (EPS) Q1'24 Underlying $ million Restructuring $ million DVA $ million Net loss on sale of business $ million Other items1 $ million Tax on normalised items $ million Reported $ million Profit for the year attributable to ordinary shareholders 1,393 (55) (48) (12) (100) 45 1,223 Basic - Weighted average number of shares (millions) 2,632 2,632 Basic earnings per ordinary share (cents) 52.9 46.5 Q1'23 Underlying $ million Restructuring $ million DVA $ million Net gain on sale of business $ million Other items $ million Tax on normalised items $ million Reported $ million Profit for the year attributable to ordinary shareholders 1,076 48 54 - - (15) 1,163 Basic - Weighted average number of shares (millions) 2,860 2,860 Basic earnings per ordinary share (cents) 37.6 40.7 1 Other items include $100m provision relating to Korea ELS Page 27 Risk review Credit quality by client segment Amortised cost 31.03.24 Banks $million Customers Undrawn commitments $million Financial Guarantees $million Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Customer Total $million Stage 1 39,437 125,119 119,592 1,014 26,408 272,133 172,631 74,702 - Strong 30,079 85,999 114,257 1,000 25,964 227,220 157,541 51,800 - Satisfactory 9,358 39,120 5,335 14 444 44,913 15,090 22,902 Stage 2 195 7,402 2,067 51 - 9,520 4,970 1,916 - Strong 59 1,151 1,533 33 - 2,717 1,122 400 - Satisfactory 104 5,274 170 6 - 5,450 3,333 1,307 - Higher risk 32 977 364 12 - 1,353 515 209 Of which (stage 2): - Less than 30 days past due 1 51 170 6 - 227 - - - More than 30 days past due 7 15 364 12 - 391 - - Stage 3, credit-impaired financial assets 84 5,396 1,532 10 52 6,990 5 683 Gross balance�� 39,716 137,917 123,191 1,075 26,460 288,643 177,606 77,301 Stage 1 (5) (140) (320) (18) - (478) (52) (14) - Strong (3) (73) (250) (17) - (340) (35) (5) - Satisfactory (2) (67) (70) (1) - (138) (17) (9) Stage 2 (8) (204) (132) (23) - (359) (44) (9) - Strong (1) (5) (50) (16) - (71) (5) - - Satisfactory (1) (142) (24) (3) - (169) (24) (3) - Higher risk (6) (57) (58) (4) - (119) (15) (6) Of which (stage 2): - Less than 30 days past due - (2) (24) (3) - (29) - - - More than 30 days past due - - (58) (4) - (62) - - Stage 3, credit-impaired financial assets (5) (3,631) (735) (10) (27) (4,403) - (126) Total credit impairment (18) (3,975) (1,187) (51) (27) (5,240) (96) (149) Net carrying value 39,698 133,942 122,004 1,024 26,433 283,403 Stage 1 0.0% 0.1% 0.3% 1.8% 0.0% 0.2% 0.0% 0.0% - Strong 0.0% 0.1% 0.2% 1.7% 0.0% 0.1% 0.0% 0.0% - Satisfactory 0.0% 0.2% 1.3% 7.1% 0.0% 0.3% 0.1% 0.0% Stage 2 4.1% 2.8% 6.4% 45.1% 0.0% 3.8% 0.9% 0.5% - Strong 1.7% 0.4% 3.3% 48.5% 0.0% 2.6% 0.5% 0.0% - Satisfactory 1.0% 2.7% 14.1% 50.0% 0.0% 3.1% 0.7% 0.2% - Higher risk 18.8% 5.8% 15.9% 33.3% 0.0% 8.8% 2.9% 2.9% Of which (stage 2): - Less than 30 days past due 0.0% 3.9% 14.1% 50.0% 0.0% 12.8% 0.0% 0.0% - More than 30 days past due 0.0% 0.0% 15.9% 33.3% 0.0% 15.9% 0.0% 0.0% Stage 3, credit-impaired financial assets (S3) 6.0% 67.3% 48.0% 100.0% 51.9% 63.0% 0.0% 18.4% Cover ratio 0.0% 2.9% 1.0% 4.7% 0.1% 1.8% 0.1% 0.2% Fair value through profit or loss Performing 36,402 55,472 11 - 2 55,485 - - - Strong 31,475 37,934 11 - 2 37,947 - - - Satisfactory 4,927 17,490 - - - 17,490 - - - Higher risk - 48 - - - 48 - - Defaulted (CG13-14) - 33 - - - 33 - - Gross balance (FVTPL)2 36,402 55,505 11 - 2 55,518 - - Net carrying value (incl FVTPL) 76,100 189,447 122,015 1,024 26,435 338,921 - - 1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $11,290 million under Customers and of $2,542 million under Banks, held at amortised cost 2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $47,568 million under Customers and of $33,441 million under Banks, held at fair value through profit or loss Page 28 Risk review continued Amortised cost 31.12.23 Banks $million Customers Undrawn commitments $million Financial Guarantees $million Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Customer Total $million Stage 1 44,384 120,886 123,486 1,015 28,305 273,692 176,654 70,832 - Strong 35,284 84,248 118,193 1,000 27,967 231,408 162,643 47,885 - Satisfactory 9,100 36,638 5,293 15 338 42,284 14,011 22,947 Stage 2 540 7,902 2,304 54 965 11,225 5,733 2,910 - Strong 55 1,145 1,761 34 - 2,940 1,090 830 - Satisfactory 212 5,840 206 7 - 6,053 4,169 1,823 - Higher risk 273 917 337 13 965 2,232 474 257 Of which (stage 2): - Less than 30 days past due - 78 206 7 - 291 - - - More than 30 days past due - 10 337 13 - 360 - - Stage 3, credit-impaired financial assets 77 5,508 1,484 12 224 7,228 3 672 Gross balance1 45,001 134,296 127,274 1,081 29,494 292,145 182,390 74,414 Stage 1 (8) (101) (314) (15) - (430) (52) (10) - Strong (3) (34) (234) (14) - (282) (31) (2) - Satisfactory (5) (67) (80) (1) - (148) (21) (8) Stage 2 (10) (257) (141) (21) (1) (420) (39) (14) - Strong (1) (18) (65) (14) - (97) (5) - - Satisfactory (2) (179) (22) (3) - (204) (23) (7) - Higher risk (7) (60) (54) (4) (1) (119) (11) (7) Of which (stage 2): - Less than 30 days past due - (2) (22) (3) - (27) - - - More than 30 days past due - (1) (54) (4) - (59) - - Stage 3, credit-impaired financial assets (6) (3,533) (760) (12) (15) (4,320) - (112) Total credit impairment (24) (3,891) (1,215) (48) (16) (5,170) (91) (136) Net carrying value 44,977 130,405 126,059 1,033 29,478 286,975 - - Stage 1 0.0% 0.1% 0.3% 1.5% 0.0% 0.2% 0.0% 0.0% - Strong 0.0% 0.0% 0.2% 1.4% 0.0% 0.1% 0.0% 0.0% - Satisfactory 0.1% 0.2% 1.5% 6.7% 0.0% 0.4% 0.1% 0.0% Stage 2 1.9% 3.3% 6.1% 38.9% 0.1% 3.7% 0.7% 0.5% - Strong 1.8% 1.6% 3.7% 41.2% 0.0% 3.3% 0.5% 0.0% - Satisfactory 0.9% 3.1% 10.7% 42.9% 0.0% 3.4% 0.6% 0.4% - Higher risk 2.6% 6.5% 16.0% 30.8% 0.1% 5.3% 2.3% 2.7% Of which (stage 2): - Less than 30 days past due 0.0% 2.6% 10.7% 42.9% 0.0% 9.3% 0.0% 0.0% - More than 30 days past due 0.0% 10.0% 16.0% 30.8% 0.0% 16.4% 0.0% 0.0% Stage 3, credit-impaired financial assets (S3) 7.8% 64.1% 51.2% 100.0% 6.7% 59.8% 0.0% 16.7% Cover ratio 0.1% 2.9% 1.0% 4.4% 0.1% 1.8% 0.0% 0.2% Fair value through profit or loss Performing 32,813 58,465 13 - - 58,478 - - - Strong 28,402 38,014 13 - 38,027 - - - Satisfactory 4,411 20,388 - - - 20,388 - - - Higher risk - 63 - - - 63 - - Defaulted (CG13-14) - 33 - - - 33 - - Gross balance (FVTPL)2 32,813 58,498 13 - - 58,511 - - Net carrying value (incl FVTPL) 77,790 188,903 126,072 1,033 29,478 345,486 - - 1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $13,996 million under Customers and of $1,738 million under Banks, held at amortised cost 2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $51,229 million under Customers and of $30,548 million under Banks, held at fair value through profit or loss Page 29 Risk review continued Credit impairment charge 3 months ended 31.03.24 3 months ended 31.03.23 Stage 1 & 2 $million Stage 3 $million Total $million Stage 1 & 2 $million Stage 3 $million Total $million Ongoing business portfolio Corporate & Investment Banking (10) 10 - 24 (32) (8) Wealth & Retail Banking 63 73 136 13 49 62 Ventures 9 19 28 6 4 10 Central & Other items (1) 13 12 (37) (1) (38) Credit impairment charge / (release) 61 115 176 6 20 26 Others 1 (12) (11) 1 (7) (6) Credit impairment charge / (release) 1 (12) (11) 1 (7) (6) Total credit impairment charge / (release) 62 103 165 7 13 20 Vulnerable, cyclical and high carbon sectors Maximum Exposure Amortised Cost 31.03.24 Maximum On Balance Sheet Exposure (net of credit impairment) $million Collateral $million Net On Balance Sheet Exposure $million Undrawn Commitments (net of credit impairment) $million Financial Guarantees (net of credit impairment) $million Net Off Balance Sheet Exposure $million Total On & Off Balance Sheet Net Exposure $million Industry: Automotive manufacturers1 3,682 24 3,658 3,413 394 3,807 7,465 Aviation1,2 1,768 899 869 1,759 717 2,476 3,345 Of which : High Carbon Sector 1,446 860 586 927 569 1,496 2,082 Commodity Traders2 8,846 355 8,491 2,445 6,288 8,733 17,224 Metals & Mining1,2 5,230 368 4,862 6,541 2,208 8,749 13,611 Of which : Steel1 1,817 200 1,617 1,143 366 1,509 3,126 Of which : Coal Mining1 20 8 12 50 101 151 163 Of which: Aluminium1 339 12 327 444 97 541 868 Shipping1 6,564 3,974 2,590 2,409 257 2,666 5,256 Construction2 3,095 495 2,600 2,710 5,866 8,576 11,176 Of which: Cement1 789 52 737 665 298 963 1,700 Commercial Real Estate2 14,420 5,734 8,686 4,741 743 5,484 14,170 Of which : High Carbon Sector 7,629 2,635 4,994 1,937 439 2,376 7,370 Hotels & Tourism2 1,960 610 1,350 1,308 313 1,621 2,971 Oil & Gas1,2 7,561 1,040 6,521 8,862 6,755 15,617 22,138 Power1 5,209 1,029 4,180 4,015 795 4,810 8,990 Total3 58,335 14,528 43,807 38,203 24,336 62,539 106,346 Of which: Vulnerable and cyclical sectors 41,333 9,427 31,906 25,749 22,164 47,913 79,819 Of which: High carbon sectors 36,594 9,908 26,686 26,482 10,797 37,279 63,965 Total Corporate & Investment Banking4 133,942 30,584 103,358 109,772 66,254 176,026 279,384 Total Group4 323,101 121,034 202,067 177,510 77,152 254,662 456,729 1 High carbon sectors 2 Vulnerable and cyclical sectors 3 Maximum On Balance sheet exposure include FVTPL portion of $1,340 million, of which Vulnerable sector is $1,290 million and High Carbon sector is $398 million 4 Exclude On Balance sheet FVTPL amount of $55,505 million for Corporate & Investment Banking and $91,920 million for Group Page 30 Risk review continued Amortised Cost 31.12.23 Maximum On Balance Sheet Exposure (net of credit impairment) Million Collateral Million Net On Balance Sheet Exposure Million Undrawn Commitments (net of credit impairment) Million Financial Guarantees (net of credit impairment) Million Net Off Balance Sheet Exposure Million Total On & Off Balance Sheet Net Exposure Million Industry: Automotive manufacturers1 3,564 65 3,499 3,791 538 4,329 7,828 Aviation1,2 1,775 974 801 1,794 668 2,462 3,263 Of which : High Carbon Sector 1,330 974 356 944 615 1,559 1,915 Commodity Traders2 7,406 303 7,103 2,591 6,281 8,872 15,975 Metals & Mining1,2 4,589 307 4,282 3,373 1,218 4,591 8,873 Of which : Steel1 1,596 193 1,403 601 358 959 2,362 Of which : Coal Mining1 29 9 20 51 99 150 170 Of which: Aluminium1 526 9 517 338 188 526 1,043 Shipping1 5,964 3,557 2,407 2,261 291 2,552 4,959 Construction2 2,853 448 2,405 2,753 5,927 8,680 11,085 Of which: Cement1,4 671 47 624 769 259 1,028 1,652 Commercial Real Estate2 14,533 6,363 8,170 4,658 311 4,969 13,139 Of which : High Carbon Sector 7,498 3,383 4,115 1,587 112 1,699 5,814 Hotels & Tourism2 1,680 715 965 1,339 227 1,566 2,531 Oil & Gas1,2 6,278 894 5,384 7,845 6,944 14,789 20,173 Power1 5,411 1,231 4,180 3,982 732 4,714 8,894 Total3 54,053 14,857 39,196 34,387 23,137 57,524 96,720 Of which: Vulnerable and cyclical sectors4 38,661 10,051 28,610 24,842 21,511 46,353 74,963 Of which: High carbon sectors4 34,984 10,458 24,526 24,552 10,709 35,261 59,787 Total Corporate & Investment Banking5 130,405 32,744 97,661 104,437 63,183 167,620 265,281 Total Group5 331,952 125,760 206,192 182,299 74,278 256,577 462,769 1 High carbon sectors 2 Vulnerable and cyclical sectors 3 Maximum On Balance sheet exposure include FVTPL portion of $977 million, of which Vulnerable sector is $602 million and High Carbon sector is $472 million 4 Included to provide consistency with climate reporting 5 Exclude On Balance sheet FVTPL amount of $58,498 million for Corporate & Investment Banking and $91,324 million for Group Page 31 Risk review continued Loans and advances by stage Amortised Cost 31.03.24 Stage 1 Stage 2 Stage 3 Total Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Industry: Aviation 1,617 - 1,617 53 (1) 52 69 (13) 56 1,739 (14) 1,725 Commodity Traders 8,205 (2) 8,203 78 (1) 77 533 (496) 37 8,816 (499) 8,317 Metals & Mining 3,239 (2) 3,237 113 (5) 108 122 (72) 50 3,474 (79) 3,395 Construction 2,674 (2) 2,672 292 (2) 290 375 (336) 39 3,341 (340) 3,001 Commercial Real Estate 12,118 (64) 12,054 1,659 (80) 1,579 1,740 (1,252) 488 15,517 (1,396) 14,121 Hotels & Tourism 1,653 (2) 1,651 204 (1) 203 118 (49) 69 1,975 (52) 1,923 Oil & Gas 6,628 (5) 6,623 570 (12) 558 532 (152) 380 7,730 (169) 7,561 Total 36,134 (77) 36,057 2,969 (102) 2,867 3,489 (2,370) 1,119 42,592 (2,549) 40,043 Total Corporate & Investment Banking 125,119 (140) 124,979 7,402 (204) 7,198 5,396 (3,631) 1,765 137,917 (3,975) 133,942 Total Group 311,570 (483) 311,087 9,715 (367) 9,348 7,074 (4,408) 2,666 328,359 (5,258) 323,101 Amortised Cost 31.12.23 Stage 1 Stage 2 Stage 3 Total Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Gross Balance $million Total Credit Impairment $million Net Carrying Amount $million Industry: Aviation 1,619 - 1,619 55 (1) 54 74 59 1,748 (16) 1,732 Commodity Traders 6,912 (2) 6,910 129 (1) 128 555 (504) 51 7,596 (507) 7,089 Metals & Mining 3,934 (1) 3,933 140 (8) 132 154 (88) 66 4,228 (97) 4,131 Construction 2,230 (2) 2,228 502 (8) 494 358 (326) 32 3,090 (336) 2,754 Commercial Real Estate 12,261 (30) 12,231 1,848 (129) 1,719 1,712 (1,191) 521 15,821 (1,350) 14,471 Hotels & Tourism 1,468 (2) 1,466 61 - 61 126 (25) 101 1,655 (27) 1,628 Oil & Gas 5,234 (4) 5,230 615 (15) 600 571 (147) 424 6,420 (166) 6,254 Total 33,658 (41) 33,617 3,350 (162) 3,188 3,550 (2,296) 1,254 40,558 (2,499) 38,059 Total Corporate & Investment Banking 120,886 (101) 120,785 7,902 (257) 7,645 5,508 (3,533) 1,975 134,296 (3,891) 130,405 Total Group 318,076 (438) 317,638 11,765 (430) 11,335 7,305 (4,326) 2,979 337,146 (5,194) 331,952 Page 32 Capital review Capital ratios 31.03.24 31.12.23 Change2 31.03.23 Change2 CET1 13.6% 14.1% (0.5) 13.7% (0.1) Tier 1 capital 16.2% 16.3% (0.1) 15.9% 0.3 Total capital 20.8% 21.2% (0.4) 20.9% (0.1) Capital base1 31.03.24 $million 31.12.23 $million Change3 % 31.03.23 $million Change3 % CET1 instruments and reserves Capital instruments and the related share premium accounts 5,295 5,321 - 5,407 (2) Of which: share premium accounts 3,989 3,989 - 3,989 - Retained earnings 27,502 24,930 10 26,936 2 Accumulated other comprehensive income (and other reserves) 8,247 9,171 (10) 8,882 (7) Non-controlling interests (amount allowed in consolidated CET1) 256 217 18 244 5 Independently reviewed interim and year-end profits 1,407 3,542 (60) 1,328 6 Foreseeable dividends (830) (768) 8 (659) 26 CET1 capital before regulatory adjustments 41,877 42,413 (1) 42,138 (1) CET1 regulatory adjustments Additional value adjustments (prudential valuation adjustments) (726) (730) (1) (801) (9) Intangible assets (net of related tax liability) (6,066) (6,128) (1) (5,859) 4 Deferred tax assets that rely on future profitability (excludes those arising from temporary differences) (51) (41) 24 (89) (43) Fair value reserves related to net losses on cash flow hedges 4 (91) nm4 301 (99) Deduction of amounts resulting from the calculation of excess expected loss (784) (754) 4 (739) 6 Net gains on liabilities at fair value resulting from changes in own credit risk 231 (100) nm4 (186) nm4 Defined-benefit pension fund assets (103) (95) 8 (144) (28) Fair value gains arising from the institution's own credit risk related to derivative liabilities (70) (116) (40) (146) (52) Exposure amounts which could qualify for risk weighting of 1,250% (33) (44) (25) (50) (34) Other regulatory adjustments to CET1 capital - - - (23) nm4 Total regulatory adjustments to CET1 (7,598) (8,099) (6) (7,736) (2) CET1 capital 34,279 34,314 - 34,402 - Additional Tier 1 capital (AT1) instruments 6,506 5,512 18 5,512 18 AT1 regulatory adjustments (20) (20) - (20) - Tier 1 capital 40,765 39,806 2 39,894 2 Tier 2 capital instruments 11,803 11,965 (1) 12,454 (5) Tier 2 regulatory adjustments (30) (30) - (30) - Tier 2 capital 11,773 11,935 (1) 12,424 (5) Total capital 52,538 51,741 2 52,318 - Total risk-weighted assets (unaudited) 252,116 244,151 3 250,893 - 1 Capital base is prepared on the regulatory scope of consolidation 2 Change is the percentage point difference between two periods, rather than percentage change 3 Variance is increase/(decrease) comparing current reporting period to prior periods 4 Not meaningful Page 33 Capital review continued Movement in total capital 3 months ended 31.03.24 $million 12 months ended 31.12.23 $million CET1 at 1 January 34,314 34,157 Ordinary shares issued in the period and share premium - - Share buy-back (1,000) (2,000) Profit for the period 1,407 3,542 Foreseeable dividends deducted from CET1 (830) (768) Difference between dividends paid and foreseeable dividends 588 (372) Movement in goodwill and other intangible assets 63 (326) Foreign currency translation differences (465) (477) Non-controlling interests 39 28 Movement in eligible other comprehensive income 151 464 Deferred tax assets that rely on future profitability (10) 35 Decrease/(increase) in excess expected loss (30) (70) Additional value adjustments (prudential valuation adjustment) 4 124 IFRS 9 transitional impact on regulatory reserves including day one - (106) Exposure amounts which could qualify for risk weighting 11 59 Fair value gains arising from the institution's own Credit Risk related to derivative liabilities 46 (26) Others (9) 50 CET1 at 31 March/31 December 34,279 34,314 AT1 at 1 January 5,492 6,484 Net issuances (redemptions) 993 (1,000) Foreign currency translation difference - 8 Excess on AT1 grandfathered limit (ineligible) 1 - AT1 at 31 March/31 December 6,486 5,492 Tier 2 capital at 1 January 11,935 12,510 Regulatory amortisation 907 1,416 Net issuances (redemptions) (1,000) (2,160) Foreign currency translation difference (71) 146 Tier 2 ineligible minority interest - 19 Other 2 4 Tier 2 capital at 31 March/31 December 11,773 11,935 Total capital at 31 March/31 December 52,538 51,741 Page 34 Capital review continued Risk-weighted assets by business 31.03.24 Credit risk $million Operational risk $million Market risk $million Total risk $million Corporate & Investment Banking 104,868 20,312 25,420 150,600 Wealth & Retail Banking 43,183 9,523 - 52,706 Ventures 1,939 142 3 2,084 Central & other items 43,019 (172) 3,879 46,726 Total risk-weighted assets 193,009 29,805 29,302 252,116 31.12.23 Credit risk $million Operational risk $million Market risk $million Total risk $million Corporate & Investment Banking 102,675 18,083 21,221 141,979 Wealth & Retail Banking 42,559 8,783 - 51,342 Ventures 1,885 35 3 1,923 Central & other items 44,304 960 3,643 48,907 Total risk-weighted assets 191,423 27,861 24,867 244,151 31.03.23 Credit risk $million Operational risk $million Market risk $million Total risk $million Corporate & Investment Banking 112,534 18,083 17,933 148,550 Wealth & Retail Banking 41,838 8,783 - 50,621 Ventures 1,591 35 1 1,627 Central & other items 44,669 960 4,466 50,095 Total risk-weighted assets 200,632 27,861 22,400 250,893 Movement in risk-weighted assets Credit risk Operational risk $million Market risk $million Total risk $million Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million At 31 December 2022 110,103 42,091 1,350 43,311 196,855 27,177 20,679 244,711 At 1 January 2023 110,103 42,091 1,350 43,311 196,855 27,177 20,679 244,711 Asset growth & mix (4,424) 728 535 1,183 (1,978) - - (1,978) Asset quality (391) 390 - 2,684 2,683 - - 2,683 Risk-weighted assets efficiencies - - - (688) (688) - - (688) Model updates (597) (151) - (151) (899) - 500 (399) Methodology and policy changes - (196) - - (196) - (800) (996) Acquisitions and disposals (1,630) - - - (1,630) - - (1,630) Foreign currency translation (386) (303) - (2,035) (2,724) - - (2,724) Other, including non-credit risk movements - - - - - 684 4,488 5,172 At 31 December 2023 102,675 42,559 1,885 44,304 191,423 27,861 24,867 244,151 Asset growth & mix 2,984 358 54 (1,055) 2,341 - - 2,341 Asset quality (308) 154 - 334 180 - - 180 Risk-weighted assets efficiencies - - - - - - - - Model updates 462 818 - - 1,280 - - 1,280 Methodology and policy changes - - - - - - (1,300) (1,300) Acquisitions and disposals - - - - - - - - Foreign currency translation (945) (706) - (564) (2,215) - - (2,215) Other, including non-credit risk movements - - - - - 1,944 5,735 7,679 At 31 March 2024 104,868 43,183 1,939 43,019 193,009 29,805 29,302 252,116 Page 35 Capital review continued Leverage Ratio 31.03.24 $million 31.12.23 $million Change3 % 31.03.23 $million Change3 % Tier 1 capital 40,765 39,806 2 39,894 2 Derivative financial instruments 46,794 50,434 (7) 48,089 (3) Derivative cash collateral 8,006 10,337 (23) 11,392 (30) Securities financing transactions (SFTs) 94,841 97,581 (3) 85,412 11 Loans and advances and other assets 662,884 664,492 - 675,785 (2) Total on-balance sheet assets 812,525 822,844 (1) 820,678 (1) Regulatory consolidation adjustments1 (80,878) (92,709) (13) (85,553) (5) Derivatives adjustments Derivatives netting (34,957) (39,031) (10) (35,561) (2) Adjustments to cash collateral (6,685) (9,833) (32) (7,533) (11) Net written credit protection 1,423 1,359 5 1,256 13 Potential future exposure on derivatives 43,745 42,184 4 39,409 11 Total derivatives adjustments 3,526 (5,321) nm4 (2,429) nm4 Counterparty risk leverage exposure measure for SFTs 5,062 6,639 (24) 10,654 (52) Off-balance sheet items 122,233 123,572 (1) 121,268 1 Regulatory deductions from Tier 1 capital (7,757) (7,883) (2) (7,404) 5 Total exposure measure excluding claims on central banks 854,711 847,142 1 857,214 - Leverage ratio excluding claims on central banks (%)2 4.8% 4.7% 0.1 4.7% 0.1 Average leverage exposure measure excluding claims on central banks 868,496 853,968 2 866,944 - Average leverage ratio excluding claims on central banks (%)2 4.6% 4.6% - 4.6% - Countercyclical leverage ratio buffer2 0.1% 0.1% - 0.1% - G-SII additional leverage ratio buffer2 0.4% 0.4% - 0.4% - 1 Includes adjustment for qualifying central bank claims and unsettled regular way trades 2 Change is the percentage point difference two periods, rather than percentage change 3 Variance is increase/(decrease) comparing current reporting period to prior periods 4 Not meaningful Page 36 Financial statements Condensed consolidated interim income statement For the three months ended 31 March 2024 3 months ended 31.03.24 $million 3 months ended 31.03.23 $million Interest income 7,137 6,284 Interest expense (5,565) (4,278) Net interest income 1,572 2,006 Fees and commission income 1,180 1,038 Fees and commission expense (212) (198) Net fee and commission income 968 840 Net trading income 2,489 1,649 Other operating income 101 65 Operating income 5,130 4,560 Staff costs (2,110) (1,960) Premises costs (82) (101) General administrative expenses (551) (390) Depreciation and amortisation (254) (299) Operating expenses (2,997) (2,750) Operating profit before impairment losses and taxation 2,133 1,810 Credit impairment (165) (20) Goodwill, property, plant and equipment and other impairment (60) - Profit from associates and joint ventures 6 18 Profit before taxation 1,914 1,808 Taxation (519) (464) Profit for the period 1,395 1,344 Profit attributable to: Non-controlling interests (8) 3 Parent company shareholders 1,403 1,341 Profit for the period 1,395 1,344 cents cents Earnings per share: Basic earnings per ordinary share 46.5 40.7 Diluted earnings per ordinary share 45.4 39.8 Page 37 Financial statements continued Condensed consolidated interim statement of comprehensive income For the three months ended 31 March 2024 3 months ended 31.03.24 $million 3 months ended 31.03.23 $million Profit for the period 1,395 1,344 Other comprehensive (loss)/income Items that will not be reclassified to income statement: (268) 264 Own credit (losses)/gains on financial liabilities designated at fair value through profit or loss (378) 293 Equity instruments at fair value through other comprehensive income (20) (22) Actuarial gains on retirement benefit obligations 23 36 Taxation relating to components of other comprehensive income 1071 (43) Items that may be reclassified subsequently to income statement: (504) 445 Exchange differences on translation of foreign operations: Net losses taken to equity (706) (79) Net gains on net investment hedges 274 79 Share of other comprehensive income/(loss) from associates and joint ventures 5 (9) Debt instruments at fair value through other comprehensive income: Net valuation (losses)/gains taken to equity (32) 157 Reclassified to income statement 48 60 Net impact of expected credit losses 1 (34) Cash flow hedges: Net movements in cash flow hedge reserve (108) 283 Taxation relating to components of other comprehensive income 14 (12) Other comprehensive (loss)/income for the year, net of taxation (772) 709 Total comprehensive income for the period 623 2,053 Total comprehensive income attributable to: Non-controlling interests (14) (13) Parent company shareholders 637 2,066 Total comprehensive income for the period 623 2,053 1 Includes $76 million reversal of deferred tax liability partly offset by $13 million capital gain tax on sale of equity investment and $46 million tax credit from own credit adjustment on financial liabilities at fair value through profit or loss Page 38 Financial statements continued Condensed consolidated interim balance sheet As at 31 March 2024 31.03.24 $million 31.12.23 $million Assets Cash and balances at central banks 61,927 69,905 Financial assets held at fair value through profit or loss 162,159 147,222 Derivative financial instruments 46,794 50,434 Loans and advances to banks 39,698 44,977 Loans and advances to customers 283,403 286,975 Investment securities 161,268 161,255 Other assets 42,709 47,594 Current tax assets 510 484 Prepayments and accrued income 3,104 3,033 Interests in associates and joint ventures 969 966 Goodwill and intangible assets 6,153 6,214 Property, plant and equipment 2,252 2,274 Deferred tax assets 661 702 Assets classified as held for sale 918 809 Total assets 812,525 822,844 Liabilities Deposits by banks 29,691 28,030 Customer accounts 459,386 469,418 Repurchase agreements and other similar secured borrowing 12,454 12,258 Financial liabilities held at fair value through profit or loss 85,956 83,096 Derivative financial instruments 48,048 56,061 Debt securities in issue 60,997 62,546 Other liabilities 45,238 39,221 Current tax liabilities 1,121 811 Accruals and deferred income 5,893 6,975 Subordinated liabilities and other borrowed funds 10,860 12,036 Deferred tax liabilities 597 770 Provisions for liabilities and charges 414 299 Retirement benefit obligations 163 183 Liabilities included in disposal groups held for sale 868 787 Total liabilities 761,686 772,491 Equity Share capital and share premium account 6,789 6,815 Other reserves 8,247 9,171 Retained earnings 28,893 28,459 Total parent company shareholders' equity 43,929 44,445 Other equity instruments 6,505 5,512 Total equity excluding non-controlling interests 50,434 49,957 Non-controlling interests 405 396 Total equity 50,839 50,353 Total equity and liabilities 812,525 822,844 Page 39 Financial statements continued Condensed consolidated interim statement of changes in equity For the three months ended 31 March 2024 Ordinary share capital and share premium account $million Preference share capital and share premium account $million Capital and merger reserves1 $million Own credit adjust-ment reserve $million Fair value through other compre-hensive income reserve - debt $million Fair value through other compre-hensive income reserve - equity $million Cash flow hedge reserve $million Trans-lation reserve $million Retained earnings $million Parent company share-holders' equity $million Other equity instru-ments $million Non-controlling interests $million Total $million As at 01 January 2023 5,436 1,494 17,338 (63) (1,116) 206 (564) (7,636) 28,067 43,162 6,504 350 50,016 Profit for the period - - - - - - - - 3,469 3,469 - (7) 3,462 Other comprehensive income/(loss)2 - - - 163 426 124 655 (489) (47)3 832 - (31) 801 Distributions - - - - - - - - - - - (26) (26) Redemption of other equity instruments - - - - - - - - - - (1,000) - (1,000) Treasury shares net movement - - - - - - - - (189) (189) - - (189) Share option expense, net of taxation - - - - - - - - 173 173 - - 173 Dividends on ordinary shares - - - - - - - - (568) (568) - - (568) Dividends on preference shares and AT1 securities - - - - - - - - (452) (452) - - (452) Share buy-back4,5 (115) - 115 - - - - - (2,000) (2,000) - - (2,000) Other movements - - - - - - - 126 66 18 86 1107 136 As at 31 December 2023 5,321 1,494 17,453 100 (690) 330 91 (8,113) 28,459 44,445 5,512 396 50,353 Profit for the period - - - - - - - - 1,403 1,403 - (8) 1,395 Other comprehensive (loss)/income2 - - - (331) 24 (90)13 (95) (440) 1663,8 (766) - (6) (772) Other equity instruments issued, net of expenses - - - - - - - - - - 99312 - 993 Treasury shares net movement - - - - - - - - 10 10 - - 10 Share option expense, net of taxation - - - - - - - - 68 68 - - 68 Dividends on preference shares and AT1 securities - - - - - - - - (180) (180) - - (180) Share buy-back9 (26) - 26 - - - - - (1,000) (1,000) - - (1,000) Other movements - - - - 7 - - (25)6 (33)10 (51) - 2311 (28) As at 31 March 2024 5,295 1,494 17,479 (231) (659) 240 (4) (8,578) 28,893 43,929 6,505 405 50,839 1 Includes capital reserve of $5 million, capital redemption reserve of $363 million and merger reserve of $17,111 million 2 All the amounts are net of tax 3 Comprises actuarial gain, net of taxation on Group defined benefit schemes 4 On 16 February 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $58 million, and the total consideration paid was $1,000 million and the buyback completed on 29 September 2023. The total number of shares purchased was 116,710,492, representing 4.03 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 5 On 28 July 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 million, and the total consideration paid was $1,000 million and the buyback completed on 6 November 2023. The total number of shares purchased was 112,982,802, representing 3.90 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 6 Movement related to Translation adjustment and AT1 Securities charges 7 Movements primarily from non-controlling interest pertaining to Mox Bank Limited ($48 million), Trust Bank Singapore Limited ($34 million) and Zodia Custody Limited ($28 million) 8 Includes $147 million gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings partly offset by $13 million capital gain tax 9 On 23rd February 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. As at Q1 2024 the buyback is ongoing, but the total number of shares purchased was 51,531,300 representing 1.9 per cent of the ordinary shares in issue, the total consideration paid was $437 million, and a further $563 million relating to irrevocable obligation to buyback shares under the buyback programme has been recognised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 10 Includes $46 million related to Ghana hyperinflation 11 Movements related to non-controlling interest from Trust Bank Singapore Limited ($23 million) 12 Relates to AT1 issued during the period net of expenses 13 Includes $147 million gain on sale of equity investment transferred to retained earnings partially offset by $76 million reversal of deferred liability Page 40 Financial statements continued Basis of preparation This statement covers the results of Standard Chartered PLC together with its subsidiaries and equity accounted interest in associates and jointly controlled entities (the Group) for the three months ended 31 March 2024. The financial information on which this statement is based, and the data set out in the appendix to this statement, are unaudited and have been prepared in accordance with the Group's accounting policies. The Group's material accounting policies are described in the Annual Report 2023, which have been prepared in accordance with UK-adopted international accounting standards and International Financial Reporting Standards (IFRS) as adopted by the European Union (EU IFRS) and in conformity with the requirements of the Companies Act 2006. There are no significant differences between UK-adopted international accounting standards and EU IFRS. The Group's Annual Report 2024 will continue to be prepared in accordance with these frameworks. The interim financial information does not constitute a full or condensed set of financial statements under IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards or EU IFRS. The interim financial information has been prepared in accordance with the recognition and measurement principles, but not the disclosure requirements under UK-adopted international accounting standards and EU IFRS. The information in this interim financial report is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. All references to reported performance/results within this interim financial report means amounts reported under UK-adopted IAS and EU IFRS or in reference to the statutory accounts for the year ended 31 December 2023, unless otherwise stated. This document was approved by the Board on 02 May 2024. The statutory accounts for the year ended 31 December 2023 have been audited and delivered to the Registrar of Companies in England and Wales. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under sections 498(2) and 498(3) of the Companies Act 2006. Going concern The Directors assessed the Group's ability to continue as a going concern, including a review of the Group's forecasts, Funding and Liquidity metrics, Capital and Liquidity plans, Legal and regulatory matters, Credit impairment, macroeconomic conditions and geopolitical headwinds, and confirm they are satisfied that the Group has adequate resources to continue in business for a period of twelve months from 02 May 2024. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the interim financial information. Page 41 Other supplementary financial information Average balance sheets and yields Average assets 3 months ended 31.03.24 Average non-interest earning balance $million Average interest earning balance $million Interest income $million Gross yield % Gross yield total balance % Cash and balances at central banks 9,382 63,384 703 4.46 3.89 Gross loans and advances to banks 36,473 42,000 514 4.92 2.63 Gross loans and advances to customers 56,481 288,554 4,154 5.79 4.84 Impairment provisions against loans and advances to banks and customers - (5,529) - - - Investment securities - Treasury and Other Eligible Bills 11,195 30,157 386 5.15 3.75 Investment securities - Debt Securities 50,527 135,144 1,380 4.11 2.99 Investment securities - Equity Shares 3,780 - - - - Property, plant and equipment and intangible assets 6,297 - - - - Prepayments, accrued income and other assets 126,234 - - - - Investment associates and joint ventures 1,023 - - - - Total average assets 301,392 553,710 7,137 5.18 3.36 3 months ended 31.12.23 Average non-interest earning balance $million Average interest earning balance $million Interest income $million Gross yield % Gross yield total balance % Cash and balances at central banks 10,582 67,162 766 4.52 3.91 Gross loans and advances to banks 35,375 45,787 584 5.06 2.85 Gross loans and advances to customers 53,984 288,046 4,014 5.53 4.66 Impairment provisions against loans and advances to banks and customers - (5,790) - - - Investment securities - Treasury and Other Eligible Bills 11,516 27,567 382 5.50 3.88 Investment securities - Debt Securities 36,323 131,238 1,342 4.06 3.18 Investment securities - Equity Shares 3,324 - - - - Property, plant and equipment and intangible assets 6,181 - - - - Prepayments, accrued income and other assets 129,698 4,173 (79) (7.51) (0.23) Investment associates and joint ventures 1,122 - - - - Total average assets 288,105 558,183 7,009 4.98 3.29 Page 42 Other supplementary financial information continued 3 months ended 31.03.23 Average non-interest earning balance $million Average interest earning balance $million Interest income $million Gross yield % Gross yield total balance % Cash and balances at central banks 11,076 58,261 515 3.58 2.99 Gross loans and advances to banks 30,547 41,723 454 4.41 2.53 Gross loans and advances to customers 61,342 312,030 3,739 4.86 4.03 Impairment provisions against loans and advances to banks and customers - (6,086) - - - Investment securities - Treasury and Other Eligible Bills 6,800 37,808 407 4.37 3.67 Investment securities - Debt Securities 24,612 138,821 1,169 3.42 2.88 Investment securities - Equity Shares 3,329 - - - - Property, plant and equipment and intangible assets 9,273 - - - - Prepayments, accrued income and other assets 129,935 - - - - Investment associates and joint ventures 1,697 - - - - Total average assets 278,611 582,557 6,284 4.37 2.93 Average liabilities 3 months ended 31.03.24 Average non-interest bearing balance $million Average interest bearing balance $million Interest expense $million Rate paid % Rate paid total balance % Deposits by banks 14,597 21,359 248 4.67 2.77 Customer accounts: Current accounts 39,982 125,691 1,027 3.29 2.49 Savings deposits - 115,275 619 2.16 2.16 Time deposits 18,512 184,972 2,397 5.21 4.74 Other deposits 37,809 13,505 166 4.94 1.30 Debt securities in issue 11,111 63,809 896 5.65 4.81 Accruals, deferred income and other liabilities 146,203 963 8 3.41 0.02 Subordinated liabilities and other borrowed funds - 11,587 204 7.08 7.08 Non-controlling interests 392 - - - - Shareholders' funds 49,335 - - - - 317,941 537,161 5,565 4.17 2.62 Adjustment for trading book funding cost and others (857) Total average liabilities and shareholders' funds 317,941 537,161 4,708 3.52 2.21 Page 43 Other supplementary financial information continued 3 months ended 31.12.23 Average non-interest bearing balance $million Average interest bearing balance $million Interest expense $million Rate paid % Rate paid total balance % Deposits by banks 13,112 22,320 199 3.54 2.23 Customer accounts: Current accounts 39,541 122,797 1,042 3.37 2.55 Savings deposits - 112,134 576 2.04 2.04 Time deposits 16,584 181,344 2,189 4.79 4.39 Other deposits 36,380 13,311 150 4.47 1.20 Debt securities in issue 13,229 65,337 840 5.10 4.24 Accruals, deferred income and other liabilities 143,058 8,140 (146) (7.12) (0.38) Subordinated liabilities and other borrowed funds - 12,533 299 9.47 9.47 Non-controlling interests 379 - - - - Shareholders' funds 46,089 - - - - 308,372 537,916 5,149 3.80 2.41 Adjustment for trading book funding cost and others (537) Total average liabilities and shareholders' funds 308,372 537,916 4,612 3.40 2.16 3 months ended 31.03.23 Average non-interest bearing balance $million Average interest bearing balance $million Interest expense $million Rate paid % Rate paid total balance % Deposits by banks 13,610 25,445 29 0.46 0.30 Customer accounts: Current accounts 44,618 130,896 906 2.81 2.09 Savings deposits - 114,478 436 1.54 1.54 Time deposits 13,595 184,692 1,772 3.89 3.62 Other deposits 54,853 4,584 45 3.98 0.31 Debt securities in issue 9,585 65,632 807 4.99 4.35 Accruals, deferred income and other liabilities 135,756 1,035 13 5.09 0.04 Subordinated liabilities and other borrowed funds - 12,207 270 8.97 8.97 Non-controlling interests 324 - - - - Shareholders' funds 49,858 - - - - 322,199 538,969 4,278 3.22 2.01 Adjustment for trading book funding cost and others (334) Total average liabilities and shareholders' funds 322,199 538,969 3,944 2.97 1.86 Page 44 Other supplementary financial information continued Net Interest Margin Q1'24 $million Q4'23 $million Q1'23 $million Interest income (reported) 7,137 7,009 6,284 Average interest earning assets 553,710 558,183 582,557 Gross yield (%) 5.18 4.98 4.37 Interest expense (Reported) 5,565 5,149 4,278 Adjustment for trading book funding cost and others (857) (537) (334) Interest expense adjusted for trading book funding cost and others 4,708 4,612 3,944 Average interest-bearing liabilities 537,161 537,916 538,969 Rate paid (%) 3.52 3.40 2.97 Net yield (%) 1.66 1.58 1.40 Net interest income adjusted for trading book funding cost and others 2,429 2,397 2,340 Net interest margin (%) 1.76 1.70 1.63 Page 45 Other supplementary financial information continued Important Notice - Forward-looking statements This document may contain 'forward-looking statements' that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'continue' or other words of similar meaning. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. The factors that could cause actual results to differ materially from those described in the forward-looking statements include (but are not limited to): changes in global, political, economic, business, competitive; market forces or condition; future exchange and interest rates; changes in environmental, social or physical risks; legislative, regulatory and policy developments; the development of standards and interpretations; the ability of the Group to mitigate the impact of climate change effectively; risks arising out of health crisis and pandemics, changes in tax rates, future business combinations or dispositions; and other factors speci��c to the Group. Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Group and should not be taken as a representation that such trends or activities will continue in the future. No statement in this document is intended to be a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise. Please refer to the Group's 2023 Annual Report for a discussion of certain risks and factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Financial instruments Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter. Caution regarding climate and environment related information Some of the climate and environment related information in this document is subject to certain limitations, and therefore the reader should treat the information provided, as well as conclusions, projections and assumptions drawn from such information, with caution. The information may be limited due to a number of factors, which include (but are not limited to): a lack of reliable data; a lack of standardisation of data; and future uncertainty. The information includes externally sourced data that may not have been verified. Furthermore, some of the data, models and methodologies used to create the information is subject to adjustment which is beyond our control, and the information is subject to change without notice. Chinese translation If there is a dispute between any translation and the English version of this Q1 2024 Results, the English text shall prevail. Page 46 CONTACT INFORMATION Global headquarters Standard Chartered Group 1 Basinghall Avenue London, EC2V 5DD United Kingdom telephone: +44 (0)20 7885 8888 facsimile: +44 (0)20 7885 9999 Shareholder enquiries ShareCare information website: sc.com/shareholders helpline: +44 (0)370 702 0138 ShareGift information website: ShareGift.org helpline: +44 (0)20 7930 3737 Registrar information UK Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol, BS99 6ZZ helpline: +44 (0)370 702 0138 Hong Kong Computershare Hong Kong Investor Services Limited 17M Floor, Hopewell Centre 183 Queen's Road East Wan Chai Hong Kong website: computershare.com/hk/investors Chinese translation Computershare Hong Kong Investor Services Limited 17M Floor, Hopewell Centre 183 Queen's Road East Wan Chai Hong Kong Register for electronic communications website: investorcentre.co.uk For further information, please contact: Manus Costello, Global Head of Investor Relations +44 (0) 20 7885 0017 LSE Stock code: STAN.LN HKSE Stock code: 02888 Page 47 This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END QRFUPUAWAUPCPWG

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