Standard Chartered PLC — Interim / Quarterly Report 2015

Jul 5, 2016

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.

Standard Chartered

STANDARD CHARTERED PLC

渣打集團有限公司

(Incorporated as a public limited company in England and Wales with registered number 966425)

(Stock Code: 02888)

Re-presentation of financial information

Standard Chartered (the Group) in 2015 announced its intention to reorganise to better align the Group's structure to client segments with clear local or global needs and to streamline the geographic regions. These changes became effective on 1 January this year.

This announcement re-presents the Group's financial results to reflect these changes for the year ended 31 December 2015 and the six months ended 30 June 2015. This approach aligns with how the client segments and geographies are managed internally. The Group will also separately disclose profit and loss and balance sheet items that are not directly related to any client segment or geographic business and internal income earned on the Group's capital deployed in local markets, which was previously allocated across each product line.

To aid comparisons with prior periods, this document will present client segment and product income from the Group's past five quarters.

This representation has not resulted in any changes to the reported income or balances in total at a Group level.

Client segments

The Group's client segments are Corporate and Institutional Banking (CIB), Private Banking, Commercial Banking and Retail Banking. CIB and Private Banking are run as global businesses while Commercial Banking and Retail Banking are run on a country basis with regional oversight. We will therefore continue to present CIB and Private Banking's financial performance on a global basis, by product, while providing a regional geographic breakdown of the financial performance of the locally run client segments.

As previously disclosed, clients from the Local Corporate sub-segment have been transferred from CIB to Commercial Banking as these clients are also managed on a local geographic basis.

Geographic regions

As part of the Group's reorganisation in 2015, the geographic regions were rationalised from eight to four. Each of the four new regions is represented on the Group's Management Team by a regional Chief Executive Officer. This document re-presents the relevant historical geographic disclosures to align to the new structure.

Product income

We have made the following adjustments to product income classifications to align with the way they are managed:

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• Treasury internal income earned on capital deployed in local markets which was previously allocated across product income is now disclosed within “Other”
• Loan syndications moved from Capital Markets to Corporate Finance
• Combined Credit and Capital Markets
• Certain Wealth Management product income is classified as Foreign Exchange income
• The creation of an “Other Financial Markets” classification which contains Equities, Money Markets and other items

Creation of “Central and other items”

The Group will now disclose centrally those profit and loss and balance sheet items that are not directly related to a client segment or geographic region. The disclosure of Central and other items will create greater transparency and more closely align the disclosed financial information of the business units with the way that they are managed under the new operational structure.

Central and other items for both client segments and geographies include Corporate Centre Costs, treasury activities, certain strategic investments and the UK Bank Levy. Corporate Centre Costs represent stewardship and central management services roles and activities that are not directly tied to the ongoing business and country operations, such as Group Directorate and Group support functions.

Asset and Liability Management, joint ventures and associate investments are managed in the geographies and hence are included within the applicable region. They are not managed directly by a client segment and therefore are included in Central and other items in the client segment tables.

Central and other items for geographies also include globally run businesses or activities that are managed by the client segments but not directly by geographic management. These include Principal Finance and Portfolio Management.

The tables that follow are based on profit before tax on an underlying basis and exclude restructuring charges, the impact of the credit and funding valuation adjustment methodology change, goodwill impairment, own credit adjustment and gains on disposals of businesses, unless otherwise stated.

Half year results 2016

Standard Chartered’s results for the six months ending 30 June 2016 will be announced on Wednesday, 3 August 2016 at 10:00am in the UK. This will be followed by a presentation to investors and analysts at 11:30am in the UK that will be broadcast via a live webcast on our website. The Group’s results will be reported on the basis described above.

By Order of the Board
Elizabeth Lloyd, CBE
Group Company Secretary

Hong Kong, 5 July 2016

As of the date of this announcement, the Board of Directors of Standard Chartered PLC comprises:

Chairman:
Sir John Wilfred Peace

Executive Directors:
Mr William Thomas Winters, CBE and Mr Andrew Nigel Halford

Independent Non-Executive Directors:
Mr Om Prakash Bhatt; Dr Kurt Michael Campbell; Dr Louis Chi-Yan Cheung; Mr David Philbrick Conner; Dr Byron Elmer Grote; Dr Han Seung-soo, KBE; Mrs Christine Mary Hodgson; Ms Gay Huey Evans, OBE; Mr Naguib Kheraj (Senior Independent Director); Mr Simon Jonathan Lowth and Ms Jasmine Mary Whitbread

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For further information, please contact:

James Hopkinson, Head of Investor Relations
Edwin Hui, Head of Investor Relations, Asia
Sarah Lindgreen, Head of Media Relations

+44 (0)20 7885 7151
+852 2820 3050
+44 (0)20 7885 8764

Forward-looking statements:

This document contains or incorporates by reference 'forward-looking statements' regarding the belief or expectations of the Company, the Directors and other members of its senior management about the Group's strategy, businesses, performance and the matters described in this document. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "believe", "plan", "seek", "continue" or similar expressions are intended to identify forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties. They are not guarantees of future performance and actual results could differ materially from those contained in the forward-looking statements. Forward-looking statements are based on current views, estimates and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of the Group and are difficult to predict. Such risks, factors and uncertainties may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks, factors and uncertainties include but are not limited to: changes in the credit quality and the recoverability of loans and amounts due from counterparties; changes in the Group's financial models incorporating assumptions, judgments and estimates which may change over time; risks relating to capital, capital management and liquidity; risks arising out of legal and regulatory matters, investigations and proceedings; operational risks inherent in the Group's business; risks arising out of the Group's holding company structure; risks associated with the recruitment, retention and development of senior management and other skilled personnel; risks associated with business expansion and engaging in acquisitions; global macroeconomic risks; risks arising out of the dispersion of the Group's operations, the locations of its businesses and the legal, political and economic environment in such jurisdictions; competition; risks associated with banking and financial services legislation, regulations, policies and guidelines; changes in the credit ratings or outlook for the Group; market, interest rate, commodity prices, equity price and other market risk; foreign exchange risk; financial market volatility; systemic risk in the banking industry and other financial institutions or corporate borrowers; cross-border country risk; risks arising from operating in markets with less developed judicial and dispute resolution systems; risks arising out of regional hostilities, terrorist attacks, social unrest or natural disasters and failure to generate sufficient level of profits and cash flows to pay future dividends.

Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Company 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 Company and/or the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Company and/or the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable law or regulations, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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4

CONTENTS

Section 1	Operating and Financial Review – Client Segments	Page
Section 2	Operating and Financial Review – Geographic Regions	12
Section 3	Operating and Financial Review – Operating Income by Product	17
Section 4	Statutory operating segmental information	19
Section 5	Other information	21

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SECTION 1: OPERATING AND FINANCIAL REVIEW – CLIENT SEGMENTS

A summary of the Group's client segments on a restated basis for the year ended 31 December 2015 and the six months ended 30 June 2015 is as follows:

Table 1

FY 2015 Operating and financial review

	Year ended 31 December 2015
Corporate & Institutional Banking $million	Commercial Banking $million
Operating income	7,181
Operating expenses	(4,456)
Operating profit/(loss) before impairment losses and taxation	2,725
Loan impairment	(2,076)
Other impairment	(244)
Profit from associates and joint ventures	-
Underlying profit/(loss) before taxation	405
Customer loans and advances	121,523
Customer deposits	187,462
Risk-weighted assets	167,735
Return on risk-weighted assets	0.2%

The reconciliation between Underlying profit/(loss) and Statutory view is detailed in table 27

Table 2

HY 2015 Operating and financial review

	Total
	Six months ended 30 June 2015
	Corporate & Institutional Banking $million	Commercial Banking $million	Private Banking $million	Retail Banking $million	Central & other items (Segment) $million	Total $million
Operating income	3,943	919	290	2,742	601	8,495
Operating expenses	(2,272)	(519)	(195)	(1,762)	(294)	(5,042)
Operating profit before impairment losses and taxation	1,671	400	95	980	307	3,453
Loan impairment	(824)	(373)	(94)	(365)	4	(1,652)
Other impairment	(63)	(7)	-	-	(16)	(86)
Profit from associates and joint ventures	-	-	-	-	109	109
Underlying profit before taxation	784	20	1	615	404	1,824
Customer loans and advances	133,175	29,925	17,318	96,817	5,104	282,339
Customer deposits	208,953	32,921	26,570	117,155	3,196	388,795
Risk-weighted assets	184,083	37,260	7,519	50,343	46,966	326,171
Return on risk-weighted assets	0.8%	0.1%	-	2.4%	1.7%	1.1%

The reconciliation between Underlying profit and Statutory view is detailed in table 28

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Table 3
FY 2015 Operating and financial review

	Year ended 31 December 2015
	Corporate & Institutional (Published)	Transfers to Commercial Banking	Transfers to Central & other items (Segment)*	Corporate & Institutional Banking (Restated)
	$million	$million	$million	$million
Operating income	8,696	(814)	(701)	7,181
Operating expenses	(5,198)	459	283	(4,456)
Operating profit before impairment losses and taxation	3,498	(355)	(418)	2,725
Loan impairment	(2,638)	561	1	(2,076)
Other impairment	(294)	11	39	(244)
Profit from associates and joint ventures	171	-	(171)	-
Underlying profit before taxation	737	217	(549)	405
Customer loans and advances	140,379	(12,811)	(6,045)	121,523
Customer deposits	200,975	(11,612)	(1,901)	187,462
Risk-weighted assets	214,478	(15,103)	(31,640)	167,735
Return on risk-weighted assets	0.3%			0.2%

Table 4
HY 2015 Operating and financial review

	Corporate & Institutional Banking
	Six months ended 30 June 2015
	Corporate & Institutional (Published)	Transfers to Commercial Banking	Transfers to Central & other items (Segment)*	Corporate & Institutional Banking (Restated)
	$million	$million	$million	$million
Operating income	4,806	(462)	(401)	3,943
Operating expenses	(2,653)	225	156	(2,272)
Operating profit before impairment losses and taxation	2,153	(237)	(245)	1,671
Loan impairment	(1,040)	217	(1)	(824)
Other impairment	(81)	1	17	(63)
Profit from associates and joint ventures	86	-	(86)	-
Underlying profit before taxation	1,118	(19)	(315)	784
Customer loans and advances	154,562	(15,907)	(5,480)	133,175
Customer deposits	223,814	(11,996)	(2,865)	208,953
Risk-weighted assets	235,315	(17,873)	(33,359)	184,083
Return on risk-weighted assets	0.9%			0.8%

The principal movements in the above tables represent the transfer of local corporate activity to the Commercial Banking segment and the transfer of Corporate Centre costs, Group Treasury, ALM and profit from associates and joint ventures to Central & other items (Segment).

*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets

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Table 5
FY 2015 Operating and financial review

	Commercial Banking
	Year ended 31 December 2015
	Commercial (Published)	Transfers from Corporate & Institutional	Transfers to Central & other items (Segment)*	Commercial Banking (Restated)
	$million	$million	$million	$million
Operating income	826	814	(35)	1,605
Operating expenses	(711)	(459)	99	(1,071)
Operating profit before impairment losses and taxation	115	355	64	534
Loan impairment	(599)	(561)	-	(1,160)
Other impairment	(7)	(11)	1	(17)
Profit from associates and joint ventures	14	-	(14)	-
Underlying loss before taxation	(477)	(217)	51	(643)
Customer loans and advances	11,107	12,811	422	24,340
Customer deposits	19,071	11,612	2	30,685
Risk-weighted assets	20,312	15,103	(787)	34,628
Return on risk-weighted assets	(2.1%)			(1.6%)

The principal movements in the above table represent the transfer of local corporate activity from CIB segment and the transfer of Corporate Centre costs, Group Treasury and profit from associates and joint ventures to Central & other items (Segment).

*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets

Table 6
FY 2015 Operating and financial review

	Commercial Banking
	Year ended 31 December 2015
	Greater China & North Asia $million	ASEAN & South Asia $million	Africa & Middle East $million	Europe & Americas $million	Total $million
Operating income	709	533	363	-	1,605
Operating expenses	(510)	(313)	(248)	-	(1,071)
Operating profit before impairment losses and taxation	199	220	115	-	534
Loan impairment	(423)	(429)	(308)	-	(1,160)
Other impairment	(9)	(8)	-	-	(17)
Underlying (loss)/profit before taxation	(233)	(217)	(193)	-	(643)
Customer loans and advances	12,097	8,307	3,936	-	24,340
Customer deposits	17,717	9,523	3,445	-	30,685
Risk-weighted assets	14,431	12,521	7,676	-	34,628
Return on risk-weighted assets	(1.3%)	(1.2%)	(1.5%)	-	(1.6%)

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Table 7
HY 2015 Operating and financial review

	Commercial Banking
	Six months ended 30 June 2015
	Commercial (Published)	Transfers from Corporate & Institutional	Transfers to Central & other items (Segment)*	Commercial Banking (Restated)
	$million	$million	$million	$million
Operating income	497	462	(40)	919
Operating expenses	(324)	(225)	30	(519)
Operating profit before impairment losses and taxation	173	237	(10)	400
Loan impairment	(154)	(217)	(2)	(373)
Other impairment	(6)	(1)	-	(7)
Profit from associates and joint ventures	10	-	(10)	-
Underlying profit before taxation	23	19	(22)	20
Customer loans and advances	13,441	15,907	577	29,925
Customer deposits	20,940	11,996	(15)	32,921
Risk-weighted assets	20,320	17,873	(933)	37,260
Return on risk-weighted assets	0.2%			0.1%

The principal movements in the above table represent the transfer of local corporate activity from CIB segment and the transfer of Corporate Centre costs, Group Treasury and profit from associates and joint ventures to Central & other items (Segment).

*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets

Table 8
HY 2015 Operating and financial review

	Commercial Banking
	Six months ended 30 June 2015
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Total
	$million	$million	$million	$million	$million
Operating income	434	277	208	-	919
Operating expenses	(243)	(157)	(119)	-	(519)
Operating profit before impairment losses and taxation	191	120	89	-	400
Loan impairment	(95)	(190)	(88)	-	(373)
Other impairment	(7)	-	-	-	(7)
Underlying profit/(loss) before taxation	89	(70)	1	-	20
Customer loans and advances	15,596	9,615	4,714	-	29,925
Customer deposits	18,117	11,031	3,773	-	32,921
Risk-weighted assets	13,928	14,557	8,775	-	37,260
Return on risk-weighted assets	1.0%	(0.7%)	-	-	0.1%

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Table 9
FY 2015 Operating and financial review

	Private Banking
	Year ended 31 December 2015
	Private Banking (Published)	Transfers to Central & other items (Segment)*	Private Banking (Restated)
	$million	$million	$million
Operating income	557	(23)	534
Operating expenses	(361)	20	(341)
Operating profit before impairment losses and taxation	196	(3)	193
Loan impairment	(94)	-	(94)
Other impairment	(5)	5	-
Underlying profit before taxation	97	2	99
Customer loans and advances	15,068	228	15,296
Customer deposits	24,532	8	24,540
Risk-weighted assets	8,116	(943)	7,173
Return on risk-weighted assets	1.2%		1.4%

Table 10
HY 2015 Operating and financial review

	Private Banking
	Six months ended 30 June 2015
	Private Banking (Published)	Transfers to Central & other items (Segment)*	Private Banking (Restated)
	$million	$million	$million
Operating income	304	(14)	290
Operating expenses	(208)	13	(195)
Operating profit before impairment losses and taxation	96	(1)	95
Loan impairment	(94)	-	(94)
Other impairment	1	(1)	-
Underlying profit before taxation	3	(2)	1
Customer loans and advances	17,211	107	17,318
Customer deposits	26,571	(1)	26,570
Risk-weighted assets	8,508	(989)	7,519
Return on risk-weighted assets	0.1%		-

*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets

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Table 11
FY 2015 Operating and financial review

	Retail Banking
	Year ended 31 December 2015
	Retail (Published)	Transfers to Central & other items (Segment)*	Retail Banking (Restated)
	$million	$million	$million
Operating income	5,360	(253)	5,107
Operating expenses	(3,768)	258	(3,510)
Operating profit before impairment losses and taxation	1,592	5	1,597
Loan impairment	(677)	(1)	(678)
Other impairment	(5)	5	-
Profit from associates and joint ventures	7	(7)	-
Underlying profit before taxation	917	2	919
Customer loans and advances	94,849	(482)	94,367
Customer deposits	114,549	(295)	114,254
Risk-weighted assets	60,019	(12,360)	47,659
Return on risk-weighted assets	1.5%		1.8%

The principal movements in the above table represent the transfer of Corporate Centre costs and Group Treasury to Central & other items (Segment).

*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets

Table 12
FY 2015 Operating and financial review

	Retail Banking
	Year ended 31 December 2015
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Total
	$million	$million	$million	$million	$million
Operating income	2,683	1,531	864	29	5,107
Operating expenses	(1,866)	(1,012)	(615)	(17)	(3,510)
Operating profit before impairment losses and taxation	817	519	249	12	1,597
Loan impairment	(296)	(312)	(70)	-	(678)
Underlying profit before taxation	521	207	179	12	919
Customer loans and advances	60,388	27,337	6,360	282	94,367
Customer deposits	75,523	28,644	8,744	1,343	114,254
Risk-weighted assets	24,262	16,284	6,927	186	47,659
Return on risk-weighted assets	2.1%	1.2%	2.1%	3.9%	1.8%

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Table 13
HY 2015 Operating and financial review

	Retail Banking
	Six months ended 30 June 2015
	Retail (Published)	Transfers to Central & other items (Segment)*	Retail Banking (Restated)
	$million	$million	$million
Operating income	2,888	(146)	2,742
Operating expenses	(1,857)	95	(1,762)
Operating profit before impairment losses and taxation	1,031	(51)	980
Loan impairment	(364)	(1)	(365)
Profit from associates and joint ventures	13	(13)	-
Underlying profit before taxation	680	(65)	615
Customer loans and advances	97,125	(308)	96,817
Customer deposits	117,470	(315)	117,155
Risk-weighted assets	62,028	(11,685)	50,343
Return on risk-weighted assets	2.2%		2.4%

The principal movements in the above table represent the transfer of Corporate Centre costs and Group Treasury to Central & other items (Segment).

*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets

Table 14
HY 2015 Operating and financial review

	Retail Banking
	Six months ended 30 June 2015
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Total
	$million	$million	$million	$million	$million
Operating income	1,475	795	457	15	2,742
Operating expenses	(932)	(511)	(309)	(10)	(1,762)
Operating profit before impairment losses and taxation	543	284	148	5	980
Loan impairment	(177)	(157)	(31)	-	(365)
Underlying profit before taxation	366	127	117	5	615
Customer loans and advances	60,566	29,383	6,619	249	96,817
Customer deposits	75,819	31,053	8,833	1,450	117,155
Risk-weighted assets	25,742	16,954	7,487	160	50,343
Return on risk-weighted assets	2.9	1.5	2.7	3.4	2.4%

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SECTION 2: OPERATING AND FINANCIAL REVIEW – GEOGRAPHIC REGIONS

A summary of the Group's geographic regions on a restated basis for the year ended 31 December 2015 and the six months ended 30 June 2015 is as follows:

Table 15

FY 2015 Operating and financial review

	Year ended 31 December 2015
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Central & other items (Geographic)	Total
	$million	$million	$million	$million	$million	$million
Operating income	6,077	4,253	2,858	1,877	374	15,439
Operating expenses	(3,763)	(2,621)	(1,790)	(1,387)	(917)	(10,478)
Operating profit/(loss) before impairment losses and taxation	2,314	1,632	1,068	490	(543)	4,961
Loan impairment	(935)	(1,942)	(844)	(192)	(95)	(4,008)
Other impairment	(28)	(63)	(36)	18	(202)	(311)
Profit from associates and joint ventures	172	15	-	-	5	192
Underlying profit/(loss) before taxation	1,523	(358)	188	316	(835)	834
Customer loans and advances	106,161	85,977	31,070	37,829	366	261,403
Customer deposits	163,519	90,539	33,013	71,864	192	359,127
Risk-weighted assets	82,070	109,730	57,566	56,815	(3,256)	302,925

The reconciliation between Underlying profit/(loss) and Statutory view is detailed in table 29

Table 16

HY 2015 Operating and financial review

	Total
	Six months ended 30 June 2015
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Central & other items (Geographic)	Total
	$million	$million	$million	$million	$million	$million
Operating income	3,388	2,200	1,553	986	368	8,495
Operating expenses	(1,906)	(1,287)	(907)	(688)	(254)	(5,042)
Operating profit before impairment losses and taxation	1,482	913	646	298	114	3,453
Loan impairment	(426)	(815)	(284)	(131)	4	(1,652)
Other impairment	(7)	(15)	(3)	2	(63)	(86)
Profit from associates and joint ventures	77	29	-	-	3	109
Underlying profit before taxation	1,126	112	359	169	58	1,824
Customer loans and advances	116,401	97,142	34,428	33,893	475	282,339
Customer deposits	173,001	106,798	33,873	74,827	296	388,795
Risk-weighted assets	88,660	119,620	60,163	58,753	(1,025)	326,171

The reconciliation between Underlying profit and Statutory view is detailed in table 30

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Table 17
FY 2015 Operating and financial review

	Year ended 31 December 2015
	Greater China (Published)	North East Asia (Published)	Total (Published)	Transfers to Central & other items (Geographic)*	Total (Restated)
	$million	$million	$million	$million	$million
Operating income	5,044	1,223	6,267	(190)	6,077
Operating expenses	(2,943)	(1,035)	(3,978)	215	(3,763)
Operating profit before impairment losses and taxation	2,101	188	2,289	25	2,314
Loan impairment	(701)	(247)	(948)	13	(935)
Other impairment	(46)	(12)	(58)	30	(28)
Profit from associates and joint ventures	173	-	173	(1)	172
Underlying profit/(loss) before taxation	1,527	(71)	1,456	67	1,523
Customer loans and advances	77,675	28,608	106,283	(122)	106,161
Customer deposits	132,062	31,400	163,462	57	163,519
Risk-weighted assets	57,536	19,752	77,288	4,782	82,070

Table 18
HY 2015 Operating and financial review

	Greater China & North Asia
	Six months ended 30 June 2015
	Greater China (Published) $million	North East Asia (Published) $million	Total (Published) $million	Transfers to Central & other items (Geographic)* $million	Total (Restated) $million
Operating income	2,854	730	3,584	(196)	3,388
Operating expenses	(1,474)	(525)	(1,999)	93	(1,906)
Operating profit before impairment losses and taxation	1,380	205	1,585	(103)	1,482
Loan impairment	(290)	(136)	(426)	-	(426)
Other impairment	(1)	(7)	(8)	1	(7)
Profit from associates and joint ventures	77	-	77	-	77
Underlying profit before taxation	1,166	62	1,228	(102)	1,126
Customer loans and advances	86,429	30,135	116,564	(163)	116,401
Customer deposits	141,700	31,295	172,995	6	173,001
Risk-weighted assets	63,350	21,672	85,022	3,638	88,660

The movements in the above tables represent the transfer of Corporate Centre costs and Group Treasury.

*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets

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Table 19
FY 2015 Operating and financial review

	Year ended 31 December 2015
	South Asia (Published)	ASEAN (Published)	Total (Published)	Transfers to Central & other items (Geographic)*	Total (Restated)
	$million	$million	$million	$million	$million
Operating income	1,435	2,997	4,432	(179)	4,253
Operating expenses	(827)	(1,880)	(2,707)	86	(2,621)
Operating profit before impairment losses and taxation	608	1,117	1,725	(93)	1,632
Loan impairment	(961)	(967)	(1,928)	(14)	(1,942)
Other impairment	(31)	(20)	(51)	(12)	(63)
Profit from associates and joint ventures	-	16	16	(1)	15
Underlying (loss)/profit before taxation	(384)	146	(238)	(120)	(358)
Customer loans and advances	19,287	66,942	86,229	(252)	85,977
Customer deposits	15,036	75,788	90,824	(285)	90,539
Risk-weighted assets	23,384	70,406	93,790	15,940	109,730

Table 20
HY 2015 Operating and financial review

	ASEAN & South Asia
	Six months ended 30 June 2015
	South Asia (Published)	ASEAN (Published)	Total (Published)	Transfers to Central & other items (Geographic)*	Total (Restated)
	$million	$million	$million	$million	$million
Operating income	718	1,617	2,335	(135)	2,200
Operating expenses	(385)	(973)	(1,358)	71	(1,287)
Operating profit before impairment losses and taxation	333	644	977	(64)	913
Loan impairment	(485)	(328)	(813)	(2)	(815)
Other impairment	(18)	(1)	(19)	4	(15)
Profit from associates and joint ventures	-	32	32	(3)	29
Underlying (loss)/profit before taxation	(170)	347	177	(65)	112
Customer loans and advances	23,414	74,006	97,420	(278)	97,142
Customer deposits	16,557	90,548	107,105	(307)	106,798
Risk-weighted assets	25,788	77,099	102,887	16,733	119,620

The principal movements in the above tables represent the transfer of Corporate Centre costs, Group Treasury to the Central & other items (Geographic) segment.

*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets

---

Table 21
FY 2015 Operating and financial review

	Year ended 31 December 2015
	MENAP (Published)	Africa (Published)	Total (Published)	Transfers to Central & other items (Geographic)*	Total (Restated)
	$million	$million	$million	$million	$million
Operating income	1,503	1,432	2,935	(77)	2,858
Operating expenses	(947)	(918)	(1,865)	75	(1,790)
Operating profit before impairment losses and taxation	556	514	1,070	(2)	1,068
Loan impairment	(436)	(502)	(938)	94	(844)
Other impairment	(3)	(48)	(51)	15	(36)
Profit from associates and joint ventures	-	4	4	(4)	-
Underlying profit/(loss) before taxation	117	(32)	85	103	188
Customer loans and advances	19,485	11,562	31,047	23	31,070
Customer deposits	22,019	10,983	33,002	11	33,013
Risk-weighted assets	27,022	19,156	46,178	11,388	57,566

Table 22
HY 2015 Operating and financial review

	Africa & Middle East
	Six months ended 30 June 2015
	MENAP (Published) $million	Africa (Published) $million	Total (Published) $million	Transfers to Central & other items (Geographic)* $million	Total (Restated) $million
Operating income	835	759	1,594	(41)	1,553
Operating expenses	(475)	(467)	(942)	35	(907)
Operating profit before impairment losses and taxation	360	292	652	(6)	646
Loan impairment	(134)	(148)	(282)	(2)	(284)
Other impairment	-	(3)	(3)	-	(3)
Underlying profit before taxation	226	141	367	(8)	359
Customer loans and advances	21,658	12,758	34,416	12	34,428
Customer deposits	22,943	10,928	33,871	2	33,873
Risk-weighted assets	28,842	18,851	47,693	12,470	60,163

The principal movements in the above tables represent the transfer of Corporate Centre costs, Group Treasury to the Central & other items (Geographic) segment.

*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets

---

Table 23
FY 2015 Operating and financial review

	Year ended 31 December 2015
	Americas (Published)	Europe (Published)	Total (Published)	Transfers to Central & other items (Geographic)*	Total (Restated)
	$million	$million	$million	$million	$million
Operating income	863	942	1,805	72	1,877
Operating expenses	(799)	(1,129)	(1,928)	541	(1,387)
Operating profit/(loss) before impairment losses and taxation	64	(187)	(123)	613	490
Loan impairment	(62)	(132)	(194)	2	(192)
Other impairment	(7)	(144)	(151)	169	18
Profit from associates and joint ventures	-	(1)	(1)	1	-
Underlying (loss)/profit before taxation	(5)	(464)	(469)	785	316
Customer loans and advances	11,498	26,346	37,844	(15)	37,829
Customer deposits	18,315	53,524	71,839	25	71,864
Risk-weighted assets	12,784	82,921	95,705	(38,890)	56,815

Table 24
HY 2015 Operating and financial review

	Europe & Americas
	Six months ended 30 June 2015
	Americas (Published)	Europe (Published)	Total (Published)	Transfers to Central & other items (Geographic)*	Total (Restated)
	$million	$million	$million	$million	$million
Operating income	440	542	982	4	986
Operating expenses	(392)	(351)	(743)	55	(688)
Operating profit before impairment losses and taxation	48	191	239	59	298
Loan impairment	(19)	(112)	(131)	-	(131)
Other impairment	-	(56)	(56)	58	2
Underlying profit before taxation	29	23	52	117	169
Customer loans and advances	12,498	21,441	33,939	(46)	33,893
Customer deposits	25,538	49,286	74,824	3	74,827
Risk-weighted assets	13,675	87,062	100,737	(41,984)	58,753

The principal movements in the above tables represent the transfer of Corporate Centre costs, Group Treasury to the Central & other items (Geographic) segment.

*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets

---

SECTION 3: OPERATING AND FINANCIAL REVIEW – OPERATING INCOME BY PRODUCT

A summary of the Group's operating income by product and client segment on a restated basis for the year ended 31 December 2015 and six months ended 30 June 2015 is as follows:

Table 25

FY 2015 Operating and financial review	Total				Represented by
	Year ended 31 December 2015				Year ended 31 December 2015
	As published	Central & other items	Reclasses	As restated	Corporate & Institutional Banking	Commercial Banking	Private Banking	Retail Banking	Central & other items (Segment)	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Transaction Banking	3,363	(113)	-	3,250	2,448	790	1	11	-	3,250
Trade	1,593	(112)	-	1,481	983	486	1	11	-	1,481
Cash Management and Custody	1,770	(1)	-	1,769	1,465	304	-	-	-	1,769
Financial Markets	2,739	(95)	277	2,921	2,533	388	-	-	-	2,921
Foreign Exchange	1,345	(23)	79	1,401	1,077	324	-	-	-	1,401
Rates	793	(35)	-	758	729	29	-	-	-	758
Commodities	270	(11)	-	259	226	33	-	-	-	259
Credit and Capital Markets	189	(22)	198	365	362	3	-	-	-	365
Other Financial Markets	142	(4)	-	138	139	(1)	-	-	-	138
Corporate Finance	2,145	(119)	(189)	1,837	1,733	102	2	-	-	1,837
Wealth Management	1,729	(17)	(79)	1,633	-	5	365	1,263	-	1,633
Retail Products	4,122	(101)	(51)	3,970	-	15	165	3,790	-	3,970
CCPL and other unsecured lending	1,962	(53)	-	1,909	-	1	-	1,908	-	1,909
Deposits	1,184	1	-	1,185	-	14	121	1,050	-	1,185
Mortgage and Auto	835	(37)	-	798	-	-	44	754	-	798
Other Retail Products	141	(12)	(51)	78	-	-	-	78	-	78
Asset and Liability Management	425	(54)	-	371	-	-	-	-	371	371
Lending and Portfolio Management	844	(124)	-	720	414	306	-	-	-	720
Principal Finance	72	(18)	-	54	53	-	1	-	-	54
Other	-	641	42	683	-	(1)	-	43	641	683
Total operating income	15,439	-	-	15,439	7,181	1,605	534	5,107	1,012	15,439

Reclassification: Treasury internal income earned on capital deployed in local markets which was previously allocated across product income is now disclosed within Other. Additionally, to better reflect the new organisational structure, we have made adjustments to some of the product income classes to align with the way they are managed. The primary changes are 1) moving Loan syndications from Capital Markets to Corporate Finance, 2) combining Credit and Capital Markets, 3) moving certain Wealth Management product income into Foreign Exchange income and 4) creating an Other Financial Markets classification which contains Equities, Money Markets and other items.

---

Table 26
HY 2015 Operating and financial review

	Total				Represented by
	Six months ended 30 June 2015				Six months ended 30 June 2015
	As published	Central & other items	Reclasses	As restated	Corporate & Institutional Banking	Commercial Banking	Private Banking	Retail Banking	Central & other items (Segment)
	$million	$million	$million	$million	$million	$million	$million	$million	$million
Transaction Banking	1,777	(60)	-	1,717	1,293	418	-	6	-
Trade	864	(60)	-	804	536	262	-	6	-
Cash Management and Custody	913	-	-	913	757	156	-	-	913
Financial Markets	1,528	(47)	236	1,717	1,443	274	-	-	1,717
Foreign Exchange	720	(10)	49	759	548	211	-	-	759
Rates	491	(19)	-	472	451	21	-	-	472
Commodities	154	(6)	-	148	128	20	-	-	148
Credit and Capital Markets	36	(11)	187	212	211	1	-	-	212
Other Financial Markets	127	(1)	-	126	105	21	-	-	126
Corporate Finance	1,108	(60)	(187)	861	807	52	2	-	861
Wealth Management	952	(9)	(49)	894	-	3	207	684	894
Retail Products	2,206	(66)	(37)	2,103	-	8	81	2,014	2,103
CCPL and other unsecured lending	1,077	(28)	-	1,049	-	1	1	1,047	1,049
Deposits	612	(1)	-	611	-	7	57	547	611
Mortgage and Auto	423	(21)	-	402	-	-	23	379	402
Other Retail Products	94	(16)	(37)	41	-	-	-	41	41
Asset and Liability Management	278	(30)	-	248	-	-	-	-	248
Lending and Portfolio Management	475	(69)	-	406	242	164	-	-	406
Principal Finance	171	(12)	-	159	158	-	1	-	159
Other	-	353	37	390	-	-	(1)	38	353
Total operating income	8,495	-	-	8,495	3,943	919	290	2,742	601

Reclassification: Treasury internal income earned on capital deployed in local markets which was previously allocated across product income is now disclosed within Other. Additionally, to better reflect the new organisational structure, we have made adjustments to some of the product income classes to align with the way they are managed. The primary changes are 1) moving Loan syndications from Capital Markets to Corporate Finance, 2) combining Credit and Capital Markets, 3) moving certain Wealth Management product income into Foreign Exchange income and 4) creating an Other Financial Markets classification which contains Equities, Money Markets and other items.

---

SECTION 4: STATUTORY OPERATING SEGMENTAL INFORMATION

A summary of the Group's client segments for the year ended 31 December 2015 and the six months ended 30 June 2015 required by IFRS 8 Operating Segments, as will be reported going forward, are shown in the tables below:

Table 27
FY 2015 Note 2 Segmental information

	Year ended 31 December 2015
	Corporate & Institutional Banking	Commercial Banking	Private Banking	Retail Banking	Central & other items (Segment)	Total
	$million	$million	$million	$million	$million	$million
Operating income	7,181	1,605	534	5,107	1,012	15,439
Operating expenses	(4,456)	(1,071)	(341)	(3,510)	(1,100)	(10,478)
Operating profit/(loss) before impairment losses and taxation	2,725	534	193	1,597	(88)	4,961
Loan impairment	(2,076)	(1,160)	(94)	(678)	-	(4,008)
Other impairment	(244)	(17)	-	-	(50)	(311)
Profit from associates and joint ventures	-	-	-	-	192	192
Underlying profit/(loss) before taxation	405	(643)	99	919	54	834
Restructuring - operating expenses	(215)	(61)	(7)	(395)	(17)	(695)
Restructuring - loan impairments	(968)	-	-	-	-	(968)
Restructuring - other impairments	(10)	-	-	-	(46)	(56)
Restructuring - goodwill impairment	-	-	-	-	(126)	(126)
Restructuring	(1,193)	(61)	(7)	(395)	(189)	(1,845)
Valuation methodology changes	(863)	-	-	-	-	(863)
Gains on businesses disposed/held for sale	-	-	-	-	218	218
Own credit adjustment	-	-	-	-	495	495
Goodwill impairment	-	-	-	-	(362)	(362)
Statutory (loss)/profit before taxation	(1,651)	(704)	92	524	216	(1,523)
Total assets employed	288,047	25,460	15,393	96,936	214,647	640,483
Of which: Loans to customers	121,523	24,340	15,296	94,367	5,877	261,403
Total liabilities employed	347,184	32,361	24,627	116,859	70,940	591,971
Of which: Customer accounts	187,462	30,685	24,540	114,254	2,186	359,127

Table 28
HY 2015 Note 2 Segmental information

	Total
	Six months ended 30 June 2015
	Corporate & Institutional Banking	Commercial Banking	Private Banking	Retail Banking	Central & other items (Segment)	Total
	$million	$million	$million	$million	$million	$million
Operating income	3,943	919	290	2,742	601	8,495
Operating expenses	(2,272)	(519)	(195)	(1,762)	(294)	(5,042)
Operating profit before impairment losses and taxation	1,671	400	95	980	307	3,453
Loan impairment	(824)	(373)	(94)	(365)	4	(1,652)
Other impairment	(63)	(7)	-	-	(16)	(86)
Profit from associates and joint ventures	-	-	-	-	109	109
Underlying profit before taxation	784	20	1	615	404	1,824
Gains on businesses disposed/held for sale	-	-	-	-	219	219
Own credit adjustment	-	-	-	-	55	55
Statutory profit before taxation	784	20	1	615	678	2,098
Total assets employed	318,950	31,309	17,441	99,532	227,724	694,956
Of which: Loans to customers	133,175	29,925	17,318	96,817	5,104	282,339
Total liabilities employed	377,772	34,913	26,691	120,041	86,195	645,612
Of which: Customer accounts	208,953	32,921	26,570	117,155	3,196	388,795

---

Table 29
FY 2015 Note 2 Segmental information

	Total
	Year ended 31 December 2015
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Central & other items (Geographic)	Total
	$million	$million	$million	$million	$million	$million
Operating income	6,077	4,253	2,858	1,877	374	15,439
Operating expenses	(3,763)	(2,621)	(1,790)	(1,387)	(917)	(10,478)
Operating profit/(loss) before impairment losses and taxation	2,314	1,632	1,068	490	(543)	4,961
Loan impairment	(935)	(1,942)	(844)	(192)	(95)	(4,008)
Other impairment	(28)	(63)	(36)	18	(202)	(311)
Profit from associates and joint ventures	172	15	-	-	5	192
Underlying profit/(loss) before taxation	1,523	(358)	188	316	(835)	834
Restructuring - operating expenses	(520)	(66)	(58)	(37)	(14)	(695)
Restructuring - loan impairments	-	(435)	(54)	(479)	-	(968)
Restructuring - other impairments	-	(46)	-	-	(10)	(56)
Restructuring - goodwill impairment	-	-	-	-	(126)	(126)
Restructuring	(520)	(547)	(112)	(516)	(150)	(1,845)
Valuation methodology changes	-	-	-	-	(863)	(863)
Gains on businesses disposed/held for sale	217	-	1	-	-	218
Own credit adjustment	-	-	-	-	495	495
Goodwill impairment	-	-	-	-	(362)	(362)
Statutory profit/(loss) before taxation	1,220	(905)	77	(200)	(1,715)	(1,523)

Table 30
HY 2015 Note 2 Segmental information

	Total
	Six months ended 30 June 2015
	Greater China & North Asia	ASEAN & South Asia	Africa & Middle East	Europe & Americas	Central & other items (Geographic)	Total
	$million	$million	$million	$million	$million	$million
Operating income	3,388	2,200	1,553	986	368	8,495
Operating expenses	(1,906)	(1,287)	(907)	(688)	(254)	(5,042)
Operating profit before impairment losses and taxation	1,482	913	646	298	114	3,453
Loan impairment	(426)	(815)	(284)	(131)	4	(1,652)
Other impairment	(7)	(15)	(3)	2	(63)	(86)
Profit from associates and joint ventures	77	29	-	-	3	109
Underlying profit before taxation	1,126	112	359	169	58	1,824
Gains on businesses disposed/held for sale	217	-	2	-	-	219
Own credit adjustment	-	-	-	-	55	55
Statutory profit before taxation	1,343	112	361	169	113	2,098

---

SECTION 5: OTHER INFORMATION

A summary of the Group's Quarterly Interim Management Statements relating to client segments and products on a restated basis for the last five quarters ended 31 March 2016 are as follows:

Table 31

Operating income by client segment	Restated	Restated
	Q1 2016	FY 2015	Q4 2015	Q3 2015	Q2 2015	Q1 2015
	$million	$million	$million	$million	$million	$million
Corporate & Institutional Banking	1,584	7,181	1,513	1,725	1,939	2,004
Commercial Banking	318	1,605	309	377	386	533
Private Banking	115	534	117	127	148	142
Retail Banking	1,151	5,107	1,166	1,199	1,340	1,402
Central & Other Items	177	1,012	157	254	261	340
Total operating income	3,345	15,439	3,262	3,682	4,074	4,421

Table 32

Operating income by product	Restated	Restated
	Q1 2016	FY 2015	Q4 2015	Q3 2015	Q2 2015	Q1 2015
	$million	$million	$million	$million	$million	$million
Transaction Banking	716	3,250	733	800	859	858
Trade	305	1,481	314	363	392	412
Cash Management and Custody	411	1,769	419	437	467	446
Financial Markets	697	2,921	582	622	746	971
Foreign Exchange	365	1,401	281	361	311	448
Rates	169	758	106	180	200	272
Commodities	44	259	50	61	49	99
Credit and Capital Markets	75	365	81	72	121	91
Other Financial Markets	44	138	64	(52)	65	61
Corporate Finance	470	1,837	459	517	392	469
Wealth Management	349	1,633	364	375	467	427
Retail Products	915	3,970	915	952	1,022	1,081
CCPL and other unsecured lending	403	1,909	417	443	497	552
Deposits	301	1,185	283	291	310	301
Mortgage and Auto	193	798	197	199	195	207
Other Retail Products	18	78	18	19	20	21
Asset and Liability Management	105	371	45	78	87	161
Lending and Portfolio Management	150	720	134	180	199	207
Principal Finance	(130)	54	(88)	(17)	129	30
Other	73	683	118	175	173	217
Total operating income	3,345	15,439	3,262	3,682	4,074	4,421

21