Standard Chartered PLC — Management Reports 2014

May 29, 2014

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 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)

Standard Chartered Reorganisation of Business

In January 2014, Standard Chartered PLC ("Standard Chartered" or the "Group") announced a change to its organisation structure effective 1 April 2014. To aid historic comparisons ahead of the Group's Half Year results, this announcement provides restated segmental information for Half Year and Full Year 2013 under the new client segment and global product groups, and the new geographic regions.

The three new client segment groups are Corporate and Institutional Clients, Commercial and Private Banking Clients, and Retail Clients. The five global product groups are Financial Markets, Corporate Finance, Transaction Banking, Wealth Products and Retail Products. The eight geographic regions are Greater China, ASEAN, North East Asia, South Asia, the Middle East, North Africa and Pakistan (MENAP), Africa, Europe and the Americas

As announced in January, these changes represent components of a programme of management actions to support the execution of a refreshed and sharpened strategy, deliver the growth and return aspirations embedded in the Group's five performance metrics, and adapt to the changes in the regulatory and market environment.

While this restatement affects the reported results of the divisions that comprise the Group's business, it has no impact on the Group's overall Income Statement, Balance Sheet or other primary statements.

The Group will provide an update of our financial performance by product and geography in the pre-close trading statement on 26 June 2014 and a full set of disclosure reflecting this new structure in our Half Year results in August 2014.

By Order of the Board

Annemarie Durbin

Group Company Secretary

Hong Kong, 29 May 2014

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

Chairman:

Sir John Wilfred Peace

Executive Directors:

Mr Peter Alexander Sands; Mr Jaspal Singh Bindra; Mr Richard Henry Meddings; Mr Alun Michael Guest Rees and Mr Viswanathan Shankar

Independent Non-Executive Directors:

Mr Om Prakash Bhatt; Dr Kurt Michael Campbell; Dr Louis Chi-Yan Cheung; Dr Han Seung-soo, KBE; Mrs Christine Mary Hodgson; Mr Naguib Kheraj; Mr Simon Jonathan Lowth; Ms Ruth Markland (Senior Independent Director); Mr John Gregor Hugh Paynter; Mr Paul David Skinner, CBE; Mr Oliver Henry James Stocken, CBE and Dr Lars Henrik Thunell

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For further information, please contact:

James Hopkinson - Investor queries
Sarah Lindgreen - Media queries

+44 (0)20 7885 7151
+44 (0)20 7885 8764

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.

2

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Restatement of tables disclosed in Note 2 (Segmental information) of statutory accounts

I. By client segment

	Full year 2013
	Corporate and Institutional Clients $million	Commercial Clients $million	Private Banking Clients $million	Retail Clients $million	Total Reportable Segments $million	Corporate items not allocated $million	Total $million
Internal income	(53)	35	(44)	62	-	-	-
Net interest income	5,869	765	349	4,173	11,156	-	11,156
Non interest income*	4,946	711	281	1,683	7,621	-	7,621
Operating income	10,762	1,511	586	5,918	18,777	-	18,777
Operating expenses	(4,954)	(731)	(407)	(3,866)	(9,958)	(235)	(10,193)
Operating profit before impairment losses and taxation	5,808	780	179	2,052	8,819	(235)	8,584
Impairment losses on loans and advances and other credit risk provisions	(488)	(157)	(8)	(964)	(1,617)	-	(1,617)
Other impairment
Goodwill impairment	-	-	-	-	-	(1,000)	(1,000)
Other impairment	(113)	(13)	-	(3)	(129)	-	(129)
Profit from associates and joint ventures	156	37	2	31	226	-	226
Profit before taxation	5,363	647	173	1,116	7,299	(1,235)	6,064
Total assets employed	456,068	35,729	23,637	152,113	667,547	6,833	674,380
Total liabilities employed	404,097	45,845	38,191	138,180	626,313	1,226	627,539

*Includes $106m in respect of own credit adjustment under Corporate and Institutional Clients

	Six months ended 30.06.13
	Corporate and Institutional Clients $million	Commercial Clients $million	Private Banking Clients $million	Retail Clients $million	Total Reportable Segments $million	Corporate items not allocated $million	Total $million
Internal income	(32)	19	(22)	35	-	-	-
Net interest income	2,947	378	173	2,100	5,598	-	5,598
Non interest income*	2,899	415	150	926	4,390	-	4,390
Operating income	5,814	812	301	3,061	9,988	-	9,988
Operating expenses	(2,500)	(374)	(213)	(1,947)	(5,034)	-	(5,034)
Operating profit before impairment losses and taxation	3,314	438	88	1,114	4,954	-	4,954
Impairment losses on loans and advances and other credit risk provisions	(197)	(43)	(8)	(482)	(730)	-	(730)
Other impairment
Goodwill impairment	-	-	-	-	-	(1,000)	(1,000)
Other impairment	(28)	14	-	3	(11)	-	(11)
Profit from associates and joint ventures	79	17	1	15	112	-	112
Profit before taxation	3,168	426	81	650	4,325	(1,000)	3,325
Total assets employed	441,203	33,760	20,464	147,496	642,923	7,034	649,957
Total liabilities employed	387,884	43,429	35,349	136,473	603,135	1,464	604,599

*Includes $237m in respect of own credit adjustment under Corporate and Institutional Clients

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II. By geography

Full year 2013

	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Internal income	85	(73)	57	83	96	129	4	(381)	-
Net interest income	2,862	1,312	1,267	2,175	948	992	393	1,207	11,156
Fees and commissions income, net	1,129	255	326	976	419	417	356	223	4,101
Net trading income*	794	88	224	597	338	184	96	193	2,514
Underlying	795	86	224	552	338	184	96	133	2,408
Own credit adjustment	(1)	2	-	45	-	-	-	60	106
Other operating income	327	59	166	225	64	29	9	127	1,006
Operating income	5,197	1,641	2,040	4,056	1,865	1,751	858	1,369	18,777
Operating expenses	(2,772)	(1,186)	(823)	(2,075)	(960)	(862)	(536)	(979)	(10,193)
Operating profit before impairment losses and taxation	2,425	455	1,217	1,981	905	889	322	390	8,584
Impairment losses on loans and advances and other credit risk provisions	(242)	(427)	(215)	(396)	(47)	(270)	(11)	(9)	(1,617)
Other impairment	1	(1,029)	(105)	2	-	-	-	2	(1,129)
Profit from associates and joint ventures	146	-	-	78	-	-	-	2	226
Profit/(loss) before taxation	2,330	(1,001)	897	1,665	858	619	311	385	6,064

*includes $106m relating to own credit adjustment (Greater China $(1)m, NE Asia $2m, ASEAN $45m and Europe $60m)

Countries with income greater than 5% of operating income

	Hong Kong $million	Singapore $million	India $million	Korea $million	UK $million	UAE $million	China $million
Operating income	3,725	2,132	1,663	1,564	1,110	1,222	933

Six months ended 30.06.13

	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Internal income	43	(36)	47	41	48	63	(1)	(205)	-
Net interest income	1,412	663	625	1,112	469	489	189	639	5,598
Fees and commissions income, net	563	143	168	506	220	201	176	118	2,095
Net trading income*	518	69	126	399	198	99	72	204	1,685
Underlying	511	67	126	306	198	99	72	69	1,448
Own credit adjustment	7	2	-	93	-	-	-	135	237
Other operating income	130	99	133	121	36	1	7	83	610
Operating income	2,666	938	1,099	2,179	971	853	443	839	9,988
Operating expenses	(1,384)	(585)	(425)	(1,069)	(493)	(421)	(278)	(379)	(5,034)
Operating profit before impairment losses and taxation	1,282	353	674	1,110	478	432	165	460	4,954
Impairment losses on loans and advances and other credit risk provisions	(127)	(193)	(117)	(172)	(34)	(75)	(7)	(5)	(730)
Other impairment	6	(1,019)	-	1	-	-	-	1	(1,011)
Profit from associates and joint ventures	73	-	-	38	-	-	-	1	112
Profit/(loss) before taxation	1,234	(859)	557	977	444	357	158	457	3,325

*includes $237m relating to own credit adjustment (Greater China $7m, NE Asia $2m, ASEAN $93m and Europe $135m)

Countries with income greater than 5% of operating income

	Hong Kong $million	Singapore $million	India $million	Korea $million	UK $million	UAE $million	China $million
Operating income	1,931	1,187	908	900	701	631	453

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III. Operating income by product

| | Full year 2013
$million |
| --- | --- |
| Transaction Banking | 3,911 |
| Trade | 2,069 |
| Cash Management and Custody | 1,842 |
| Financial Markets | 3,962 |
| Corporate Finance | 2,519 |
| Wealth Management | 1,449 |
| Retail Products | 5,046 |
| Cards, Personal Loans and Unsecured Lending | 2,788 |
| Deposits | 1,193 |
| Mortgage & Auto | 997 |
| Other Retail Products | 68 |
| Others | 1,890 |
| Asset & Liability Management | 548 |
| Lending and Portfolio Management | 1,065 |
| Principal Finance | 277 |
| Total operating Income | 18,777 |

*Includes own credit adjustment of $106m

| | Six months ended 30.06.13
$million |
| --- | --- |
| Transaction Banking | 1,964 |
| Trade | 1,042 |
| Cash Management and Custody | 922 |
| Financial Markets | 2,449 |
| Corporate Finance | 1,238 |
| Wealth Management | 755 |
| Retail Products | 2,588 |
| Cards, Personal Loans and Unsecured Lending | 1,401 |
| Deposits | 605 |
| Mortgage & Auto | 519 |
| Other Retail Products | 63 |
| Others | 994 |
| Asset & Liability Management | 305 |
| Lending and Portfolio Management | 522 |
| Principal Finance | 167 |
| Total operating Income | 9,988 |

*Includes own credit adjustment of $237m

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Restatement of tables disclosed in Operating and Financial Review (OFR)

I. By client segment and geography

Full year 2013

Corporate and Institutional Clients	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	2,468	560	1,284	2,042	1,119	1,195	858	1,130	10,656
Of which - Client income	2,252	431	1,120	1,781	953	1,019	799	957	9,312
Operating expenses	(1,137)	(305)	(403)	(976)	(494)	(499)	(536)	(604)	(4,954)
Loan impairment	(1)	(53)	(106)	(92)	20	(247)	(3)	(6)	(488)
Other impairment	(14)	(27)	(76)	2	-	-	-	2	(113)
Profit from associates and joint ventures	131	-	-	25	-	-	-	-	156
Operating profit	1,447	175	699	1,001	645	449	319	522	5,257

Operating income and operating profit excludes own credit adjustment (Greater China $(1)m, NE Asia $2m, ASEAN $45m and Europe $60m)

Corporate and Institutional Clients	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
Operating income	1,774	1,064	487	1,054	584	749
Of which - Client income	1,621	920	378	917	530	620
Operating expenses	(737)	(551)	(249)	(338)	(345)	(310)
Loan impairment	7	(9)	(53)	(95)	(10)	(2)
Other impairment	(2)	10	(27)	(76)	(14)	-
Profit from associates and joint ventures	-	-	-	-	131	-
Operating profit	1,042	514	158	545	346	437

Operating income and operating profit excludes own credit adjustment (Singapore $29m, Korea $1m and China $(1)m)

Commercial Clients	Full year 2013
	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	599	93	265	254	173	127	-	-	1,511
Of which - Client income	562	97	192	183	160	127	-	-	1,321
Operating expenses	(289)	(89)	(83)	(120)	(73)	(77)	-	-	(731)
Loan impairment	(27)	(21)	(68)	(9)	(28)	(4)	-	-	(157)
Other impairment	16	-	(26)	(3)	-	-	-	-	(13)
Profit from associates and joint ventures	-	-	-	37	-	-	-	-	37
Operating profit/(loss)	299	(17)	88	159	72	46	-	-	647
Commercial Clients	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
---	---	---	---	---	---	---
Operating income	469	158	93	256	87	145
Of which - Client income	436	108	97	183	86	136
Operating expenses	(181)	(71)	(89)	(80)	(73)	(61)
Loan impairment	(4)	-	(21)	(67)	(23)	(18)
Other impairment	(2)	-	-	(26)	18	-
Profit from associates and joint ventures	-	-	-	-	-	-
Operating profit/(loss)	282	87	(17)	83	9	66

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Full year 2013

Private Banking Clients	North East			MENAP			UAE
	Greater China $million	Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	116	10	34	249	28	-	-	149	586
Of which - Client income	106	9	28	255	26	-	-	142	566
Operating expenses	(92)	(10)	(16)	(141)	(23)	-	-	(125)	(407)
Loan impairment	-	-	-	-	-	-	(8)	-	(8)
Other impairment	-	-	-	-	-	-	-	-	-
Profit from associates and joint ventures	-	-	-	-	-	-	-	2	2
Operating profit/(loss)	24	-	18	108	5	-	(8)	26	173
Private Banking Clients	Hong
---	---	---	---	---	---	---	---
	Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
Operating income	116	249	10	34	-	28
Of which - Client income	106	254	9	28	-	26
Operating expenses	(92)	(141)	(10)	(16)	-	(23)
Loan impairment	-	-	-	-	-	-
Other impairment	-	-	-	-	-	-
Profit from associates and joint ventures	-	-	-	-	-	-
Operating profit	24	108	-	18	-	5

Full year 2013

Retail Clients	North East			MENAP			UAE
	Greater China $million	Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	2,015	976	457	1,466	545	429	-	30	5,918
Of which - Client income	1,926	925	430	1,427	524	414	-	27	5,673
Operating expenses	(1,254)	(782)	(321)	(838)	(370)	(286)	-	(15)	(3,866)
Loan impairment	(214)	(353)	(41)	(295)	(39)	(19)	-	(3)	(964)
Other impairment	(1)	(2)	(3)	3	-	-	-	-	(3)
Profit from associates and joint ventures	15	-	-	16	-	-	-	-	31
Operating profit/(loss)	561	(161)	92	352	136	124	-	12	1,116
Retail Clients	Hong
---	---	---	---	---	---	---	---
	Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
Operating income	1,366	632	973	319	263	300
Of which - Client income	1,286	630	922	297	251	285
Operating expenses	(656)	(366)	(772)	(250)	(335)	(179)
Loan impairment	(138)	(79)	(353)	(33)	(25)	(32)
Other impairment	-	-	(2)	(3)	-	-
Profit from associates and joint ventures	-	-	-	-	15	-
Operating profit/(loss)	572	187	(154)	33	(82)	89

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Full year 2013

Total	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	5,198	1,639	2,040	4,011	1,865	1,751	858	1,309	18,671
Of which - Client income	4,846	1,462	1,770	3,646	1,663	1,560	799	1,126	16,872
Operating expenses	(2,772)	(1,186)	(823)	(2,075)	(960)	(862)	(536)	(979)	(10,193)
Loan impairment	(242)	(427)	(215)	(396)	(47)	(270)	(11)	(9)	(1,617)
Other impairment	1	(1,029)	(105)	2	-	-	-	2	(1,129)
Profit from associates and joint ventures	146	-	-	78	-	-	-	2	226
Operating profit/(loss)	2,331	(1,003)	897	1,620	858	619	311	325	5,958

Operating income and operating profit excludes $106m in respect of own credit adjustment (Greater China $(1)m, NE Asia $2m, ASEAN $45m and Europe $60m)

Table includes corporate items not allocated by client segment comprising of the UK Bank Levy $235m and goodwill impairment charge on Korea business $1,000m

Total	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
Operating income	3,725	2,103	1,563	1,663	934	1,222
Of which - Client income	3,449	1,912	1,406	1,425	867	1,067
Operating expenses	(1,666)	(1,129)	(1,120)	(684)	(753)	(573)
Loan impairment	(135)	(88)	(427)	(195)	(58)	(52)
Other impairment	(4)	10	(1,029)	(105)	4	-
Profit from associates and joint ventures	-	-	-	-	146	-
Operating profit/(loss)	1,920	896	(1,013)	679	273	597

Operating income and operating profit excludes own credit adjustment (Singapore $29m, Korea $1m and China $(1)m)

Table includes corporate items not allocated by client segment comprising the goodwill impairment charge on Korea business $1,000m

Six months ended 30.06.13

Corporate and Institutional Clients	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	1,273	340	679	1,051	593	585	443	613	5,577
Of which - Client income	1,164	240	567	891	498	498	402	490	4,750
Operating expenses	(569)	(151)	(204)	(500)	(252)	(238)	(278)	(308)	(2,500)
Loan impairment	(14)	(17)	(88)	(13)	(1)	(62)	1	(3)	(197)
Other impairment	(11)	(19)	-	1	-	-	-	1	(28)
Profit from associates and joint ventures	66	-	-	13	-	-	-	-	79
Operating profit	745	153	387	552	340	285	166	303	2,931

Operating income and operating profit excludes $237m in respect of own credit adjustment (Greater China $7m, NE Asia $2m, ASEAN $93m and Europe $135m)

Corporate and Institutional Clients	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
Operating income	926	577	305	563	289	394
Of which - Client income	850	455	214	468	262	322
Operating expenses	(366)	(305)	(123)	(173)	(175)	(156)
Loan impairment	(1)	-	(17)	(88)	(10)	4
Other impairment	(2)	10	(19)	-	(11)	-
Profit from associates and joint ventures	-	-	-	-	66	-
Operating profit	557	282	146	302	159	242

Operating income and operating profit excludes own credit adjustment (Hong Kong $2m, Singapore $64m, Korea $2m and China $5m)

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Six months ended 30.06.13

Commercial Clients	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	306	50	157	155	86	58	-	-	812
Of which - Client income	308	51	102	91	80	63	-	-	695
Operating expenses	(144)	(44)	(46)	(66)	(38)	(36)	-	-	(374)
Loan impairment	(5)	(8)	(11)	(3)	(13)	(3)	-	-	(43)
Other impairment	17	-	-	(3)	-	-	-	-	14
Profit from associates and joint ventures	-	-	-	17	-	-	-	-	17
Operating profit/(loss)	174	(2)	100	100	35	19	-	-	426
Commercial Clients	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
---	---	---	---	---	---	---
Operating income	259	106	50	153	21	74
Of which - Client income	244	55	51	97	41	69
Operating expenses	(90)	(42)	(44)	(44)	(37)	(31)
Loan impairment	(1)	1	(8)	(11)	(4)	(6)
Other impairment	-	-	-	-	17	-
Profit from associates and joint ventures	-	-	-	-	-	-
Operating profit/(loss)	168	65	(2)	98	(3)	37

Six months ended 30.06.13

Private Banking Clients	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	58	10	20	124	12	-	-	77	301
Of which - Client income	52	9	15	127	12	-	-	69	284
Operating expenses	(47)	(10)	(8)	(73)	(12)	-	-	(63)	(213)
Loan impairment	-	-	-	-	-	-	(8)	-	(8)
Other impairment	-	-	-	-	-	-	-	-	-
Profit from associates and joint ventures	-	-	-	-	-	-	-	1	1
Operating profit/(loss)	11	-	12	51	-	-	(8)	15	81
Private Banking Clients	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
---	---	---	---	---	---	---
Operating income	58	124	10	20	-	12
Of which - Client income	52	127	9	15	-	12
Operating expenses	(47)	(73)	(10)	(8)	-	(12)
Loan impairment	-	-	-	-	-	-
Other impairment	-	-	-	-	-	-
Profit from associates and joint ventures	-	-	-	-	-	-
Operating profit	11	51	-	12	-	-

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Six months ended 30.06.13

Retail Clients	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	1,022	536	243	756	280	210	-	14	3,061
Of which - Client income	974	502	226	734	269	201	-	13	2,919
Operating expenses	(624)	(380)	(167)	(430)	(191)	(147)	-	(8)	(1,947)
Loan impairment	(108)	(168)	(18)	(156)	(20)	(10)	-	(2)	(482)
Other impairment	-	-	-	3	-	-	-	-	3
Profit from associates and joint ventures	7	-	-	8	-	-	-	-	15
Operating profit/(loss)	297	(12)	58	181	69	53	-	4	650
Retail Clients	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
---	---	---	---	---	---	---
Operating income	686	316	533	172	138	151
Of which - Client income	644	315	500	160	132	144
Operating expenses	(323)	(194)	(372)	(131)	(171)	(91)
Loan impairment	(68)	(40)	(168)	(14)	(13)	(15)
Other impairment	-	-	-	-	-	-
Profit from associates and joint ventures	-	-	-	-	7	-
Operating profit/(loss)	295	82	(7)	27	(39)	45

Six months ended 30.06.13

Total	Greater China $million	North East Asia $million	South Asia $million	ASEAN $million	MENAP $million	Africa $million	Americas $million	Europe $million	Total $million
Operating income	2,659	936	1,099	2,086	971	853	443	704	9,751
Of which - Client income	2,498	802	910	1,843	859	762	402	572	8,648
Operating expenses	(1,384)	(585)	(425)	(1,069)	(493)	(421)	(278)	(379)	(5,034)
Loan impairment	(127)	(193)	(117)	(172)	(34)	(75)	(7)	(5)	(730)
Other impairment	6	(1,019)	-	1	-	-	-	1	(1,011)
Profit from associates and joint ventures	73	-	-	38	-	-	-	1	112
Operating profit/(loss)	1,227	(861)	557	884	444	357	158	322	3,088

Operating income and operating profit excludes $237m in respect of own credit adjustment (Greater China $7m, NE Asia $2m, ASEAN $93m and Europe $135m) Table includes corporate items not allocated by client segment comprising the goodwill impairment charge on Korea business $1,000m

Total	Hong Kong $million	Singapore $million	Korea $million	India $million	China $million	UAE $million
Operating income	1,929	1,123	898	908	448	631
Of which - Client income	1,790	952	774	740	435	547
Operating expenses	(826)	(614)	(549)	(356)	(383)	(290)
Loan impairment	(70)	(39)	(193)	(113)	(27)	(17)
Other impairment	(2)	10	(1,019)	-	6	-
Profit from associates and joint ventures	-	-	-	-	73	-
Operating profit/(loss)	1,031	480	(863)	439	117	324

Operating income and operating profit excludes own credit adjustment (Hong Kong $2m, Singapore $64m, Korea $2m and China $5m) Table includes corporate items not allocated by client segment comprising the goodwill impairment charge on Korea business $1,000m

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II. By geography – regions and key countries (new view for OFR)

Full year 2013

	Operating income $million	Operating expenses $million	Loan impairment $million	Other impairment $million	Profit from associates and joint ventures $million	Operating profit/(loss) $million
Hong Kong	3,725	(1,666)	(135)	(4)	-	1,920
China	934	(753)	(58)	4	146	273
Taiwan	539	(353)	(49)	1	-	138
Greater China	5,198	(2,772)	(242)	1	146	2,331
Korea	1,563	(1,120)	(427)	(1,029)	-	(1,013)
Other NEA	76	(66)	-	-	-	10
North East Asia	1,639	(1,186)	(427)	(1,029)	-	(1,003)
India	1,663	(684)	(195)	(105)	-	679
Other SA	377	(139)	(20)	-	-	218
South Asia	2,040	(823)	(215)	(105)	-	897
Singapore	2,103	(1,129)	(88)	10	-	896
Malaysia	696	(344)	(104)	-	-	248
Other ASEAN	1,212	(602)	(204)	(8)	78	476
ASEAN	4,011	(2,075)	(396)	2	78	1,620
UAE	1,222	(573)	(52)	-	-	597
Other MENAP	643	(387)	5	-	-	261
MENAP	1,865	(960)	(47)	-	-	858
Africa	1,751	(862)	(270)	-	-	619
Americas	858	(536)	(11)	-	-	311
UK	1,050	(812)	(6)	2	2	236
Other Europe	259	(167)	(3)	-	-	89
Europe	1,309	(979)	(9)	2	2	325
Total	18,671	(10,193)	(1,617)	(1,129)	226	5,958

Operating income and operating profit excludes own credit adjustment (China $(1)m within Greater China; Korea $2m within NE Asia; Singapore $29m, Malaysia $4m and Other ASEAN $12m within total ASEAN $45m and UK $60m within Europe)

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Six months ended 30.06.13

	Operating income	Operating expenses	Loan impairment	Other impairment	Profit from associates and joint ventures	Operating profit/(loss)
	$million	$million	$million	$million	$million	$million
Hong Kong	1,929	(826)	(70)	(2)	-	1,031
China	448	(383)	(27)	6	73	117
Taiwan	282	(175)	(30)	2	-	79
Greater China	2,659	(1,384)	(127)	6	73	1,227
Korea	898	(549)	(193)	(1,019)	-	(863)
Other NEA	38	(36)	-	-	-	2
North East Asia	936	(585)	(193)	(1,019)	-	(861)
India	908	(356)	(113)	-	-	439
Other SA	191	(69)	(4)	-	-	118
South Asia	1,099	(425)	(117)	-	-	557
Singapore	1,123	(614)	(39)	10	-	480
Malaysia	350	(173)	(57)	-	-	120
Other ASEAN	613	(282)	(76)	(9)	38	284
ASEAN	2,086	(1,069)	(172)	1	38	884
UAE	631	(290)	(17)	-	-	324
Other MENAP	340	(203)	(17)	-	-	120
MENAP	971	(493)	(34)	-	-	444
Africa	853	(421)	(75)	-	-	357
Americas	443	(278)	(7)	-	-	158
UK	566	(297)	(3)	1	1	268
Other Europe	138	(82)	(2)	-	-	54
Europe	704	(379)	(5)	1	1	322
Total	9,751	(5,034)	(730)	(1,011)	112	3,088

Operating income and operating profit excludes own credit adjustment (China $5m and Hong Kong $2m within total Greater China $7m; Korea $2m within NE Asia; Singapore $64m, Malaysia $8m and Other ASEAN $21m within total ASEAN $93m; and UK $135m within Europe)

12

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III. Operating income by product by segment (new disclosure)

	Full year 2013
	Total $million	Corporate & institutional Clients $million	Commercial Clients $million	Private Banking Clients $million	Retail Clients $million
Transaction Banking	3,911	3,253	640	3	15
Trade	2,069	1,715	336	3	15
Cash Management and Custody	1,842	1,538	304	-	-
Financial Markets*	3,856	3,594	262	-	-
Corporate Finance	2,519	2,486	33	-	-
Wealth Management	1,449	-	140	378	931
Retail Products	5,046	-	5	196	4,845
Cards, Personal Loans and Unsecured Lending	2,788	-	-	-	2,788
Deposits	1,193	-	5	140	1,048
Mortgage & Auto	997	-	-	54	943
Other Retail Products	68	-	-	2	66
Others	1,890	1,323	431	9	127
Asset & Liability Management	548	375	37	9	127
Lending and Portfolio Management	1,065	767	298	-	-
Principal Finance	277	181	96	-	-
Total operating Income*	18,671	10,656	1,511	586	5,918
Financial Markets operating income by desk
Foreign Exchange	1,413	1,195	218	-	-
Rates	917	900	17	-	-
Commodities and Equities	507	492	15	-	-
Capital Markets	558	553	5	-	-
Credit and Other*	461	454	7	-	-
Total Financial Markets operating income*	3,856	3,594	262	-	-

*Excludes own credit adjustment of $106m

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Six months ended 30.06.13

	Total $million	Corporate & institutional Clients $million	Commercial Clients $million	Private Banking Clients $million	Retail Clients $million
Transaction Banking	1,964	1,633	322	1	8
Trade	1,042	865	168	1	8
Cash Management and Custody	922	768	154	-	-
Financial Markets*	2,212	2,043	169	-	-
Corporate Finance	1,238	1,220	18	-	-
Wealth Management	755	-	71	191	493
Retail Products	2,588	-	3	98	2,487
Cards, Personal Loans and Unsecured Lending	1,401	-	-	-	1,401
Deposits	605	-	3	72	530
Mortgage & Auto	519	-	-	25	494
Other Retail Products	63	-	-	1	62
Others	994	681	229	11	73
Asset & Liability Management	305	199	22	11	73
Lending and Portfolio Management	522	380	142	-	-
Principal Finance	167	102	65	-	-
Total operating Income*	9,751	5,577	812	301	3,061
Financial Markets operating income by desk
Foreign Exchange	835	687	148	-	-
Rates	552	542	10	-	-
Commodities and Equities	288	276	12	-	-
Capital Markets	283	281	2	-	-
Credit and Other*	254	257	(3)	-	-
Total Financial Markets operating income*	2,212	2,043	169	-	-

*Excludes own credit adjustment of $237m

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Additional Table

I. Customer loans and Deposits by segment

	As at 31.12.13
	Corporate and Institutional Clients $million	Commercial Clients $million	Private Banking Clients $million	Retail Clients $million	Total $million
Customer loans	159,894	19,025	17,208	99,888	296,015
Customer deposits	211,051	33,705	32,212	114,003	390,971
	As at 30.06.13
---	---	---	---	---	---
	Corporate and Institutional Clients $million	Commercial Clients $million	Private Banking Clients $million	Retail Clients $million	Total $million
Customer loans	157,398	18,396	14,754	101,245	291,793
Customer deposits	206,125	31,883	30,275	112,502	380,785