Standard Chartered PLC

National Storage Mechanism | Additional information RNS Number : 2973T Standard Chartered PLC 31 July 2025 Standard Chartered PLC - Half Year Results 2025 - Part 2 Table of content Risk review 02 Capital review 50 Statement of directors' responsibilities 56 Independent review report to Standard Chartered PLC 57 Financial statements 59 Notes to the financial statements 65 Other supplementary information 108 Shareholder information 118 Important notices 120 Glossary 122 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. The information within Performance highlights to Capital review and Other supplementary information to Glossary is unreviewed. 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. - page 01 - Risk review and Capital review Risk Index Risk profile Credit Risk Basis of preparation Credit risk overview Impairment model Staging of financial instruments IFRS 9 Expected Credit Loss (ECL) principles and approaches Summary of Credit Risk performance Maximum exposure to Credit Risk Analysis of financial instrument by stage Credit quality analysis �� Credit quality by client segment �� Credit quality by key geography Movement in gross exposures and credit impairment for loans and advances, debt securities, undrawn commitments and financial guarantees Analysis of stage 2 balances Credit impairment charge Problem credit management and provisioning �� Forborne and other modified loans by client segment �� Forborne and other modified loans by key geography Credit risk mitigation �� Collateral held on loans and advances �� Collateral - Corporate & Investment Banking �� Collateral - Wealth & Retail Banking �� Mortgage loan-to-value ratios by geography �� Collateral and other credit enhancements possessed or called upon �� Other Credit Risk mitigation Other portfolio analysis �� Credit quality by industry �� Industry and retail products analysis of loans and advances by key geography �� High-carbon sectors �� Commercial real estate �� Debt securities and other eligible bills IFRS 9 ECL methodology Traded Risk Market Risk movements Counterparty Credit Risk Derivative financial instruments Credit Risk mitigation Liquidity and Funding Risk Liquidity and Funding Risk metrics Liquidity analysis of the Group's balance sheet Interest Rate Risk in the Banking Book Operational and Technology Risk Operational and Technology Risk profile Other principal risks Capital Capital summary �� Capital ratio �� Capital base �� Movement in total capital Risk-weighted asset Leverage ratio The following parts of the Risk review and Capital review form part of these financial statements and are reviewed by the external auditors: a) Risk review: Disclosures marked as 'reviewed' from the start of the 'Credit Risk' section to the end of other principal risks in the same section; and b) Capital review: Tables marked as 'reviewed' from the start of 'Capital base' to the end of 'Movement in total capital', excluding 'Total risk-weighted assets'. - page 02 - Risk review Credit Risk (reviewed) Basis of preparation Unless otherwise stated, the balance sheet and income statement information within this section is based on the financial booking location. The accounting policy for the presentation of geographic information has been changed in 2025 as set out in Note 1 to the financial statements, and prior period amounts have been re-presented in line with this change. Loans and advances to customers and banks held at amortised cost in this 'Risk profile' section include reverse repurchase agreement balances held at amortised cost, per Note 15 Reverse repurchase and repurchase agreements including other similar secured lending and borrowing. Credit Risk overview Credit Risk is the potential for loss due to the failure of a counterparty to meet its agreed obligations to pay the Group. Credit exposures arise from both the banking and trading books. Impairment model IFRS 9 mandates an impairment model that requires the recognition of ECL on all financial debt instruments held at amortised cost, Fair Value through Other Comprehensive Income (FVOCI), undrawn loan commitments and financial guarantees. Staging of financial instruments Financial instruments that are not already credit-impaired are originated into stage 1 and a 12-month expected credit loss provision is recognised. Instruments will remain in stage 1 until they are repaid, unless they experience significant credit deterioration (stage 2) or they become credit-impaired (stage 3). Instruments will transfer to stage 2 and a lifetime expected credit loss provision is recognised when there has been a significant change in the Credit Risk compared to what was expected at origination. The framework used to determine a Significant increase in Credit Risk (SICR) is set out below. Stage 1 �� 12-month ECL �� Performing Stage 2 �� Lifetime expected credit loss �� Performing but has exhibited SICR Stage 3 �� Credit-impaired �� Non-performing IFRS 9 ECL principles and approaches The main methodology principles and approach adopted by the Group are set out in the following table. Refer to the 2024 Annual Report for the 'Application of lifetime ECL' on page 236, 'Sensitivity of ECL calculation to macroeconomic variables' on page 242, 'SICR' on page 244, 'Assessment of credit-impaired financial assets' on page 245 and 'Governance of Post Model Adjustments and application of expert credit judgement in respect of ECL' on page 246. Title Supplementary Information Approach for determining ECL �� IFRS 9 ECL methodology Key assumptions and judgements in determining ECL �� Incorporation of forward-looking information �� Forecast of key macroeconomic variables underlying the ECL calculation and the impact of non-linearity �� Impact of multiple economic scenarios �� Judgemental adjustments and management overlays Transfers between stages �� Movement in gross exposures and credit impairment Modified financial assets �� Forborne and other modified loans - page 03 - Summary of Credit Risk Performance Maximum Exposure The Group's on-balance sheet maximum exposure to Credit Risk increased by $50.4 billion to $873.8 billion (31 December 2024: $823.4 billion). Cash and balances at Central banks increased by $16.7 billion to $80.2 billion (31 December 2024: $63.4 billion) due to increased placements. Loans to banks held at amortised cost decreased by $1.2 billion to $42.4 billion (31 December 2024: $43.6 billion). Debt securities (not held at fair value through profit or loss) increased by $14.1 billion to $157.6 billion (31 December 2024: $143.6 billion) as exposures increased due to investments in high quality liquid assets. Loans and advances to customers increased by $5.7 billion to $286.7 billion (31 December 2024: $281.0 billion). Fair Value through profit and loss increased by $22.0 billion to $194.1 billion (31 December 2024: $172 billion), largely due to an increase in debt securities and reverse repos. Off-balance sheet instruments increased by $23.7 billion to $296.9 billion (31 December 2024: $273.2 billion), due to an increase in undrawn commitments, financial guarantees and other equivalents. Derivative financial instruments decreased by $17.2 billion to $64.2 billion (31 December 2024: $81.5 billion) mainly due to the weakening of the US dollar. Loans and Advances 94 per cent (31 December 2024: 94 per cent) of the Group's gross loans and advances to customers remain in stage 1 at $273.2 billion (31 December 2024: $269.1 billion), reflecting our continued focus on high-quality origination. For WRB, stage 1 balances increased by $7.3 billion to $124.3 billion (31 December 2024: $117 billion), mainly due to a $5.2 billion increase in the mortgage portfolio across Korea, Taiwan and Singapore and $2.5 billion increase in Secured wealth products due to the higher demand in Singapore. For CIB, stage 1 balances remained stable at $129.1 billion (31 December 2024: $128.7 billion). For Central and other items, stage 1 balances decreased by $3.7 billion to $18.3 billion (31 December 2024: $22 billion) due to exposure reductions in the Government sector. Stage 2 loans and advances to customers increased by $1.9 billion to $12.5 billion (31 December 2024: $10.6 billion). For WRB, stage 2 balances remained stable at $2.1 billion (31 December 2024: $1.9 billion). For CIB, stage 2 balances increased by $1.7 billion to $10.4 billion (31 December 2024: $8.6 billion), due to exposure increases to Sovereign related and Commercial real estate clients. Stage 3 loans and advances decreased by $0.1 billion to $6.1 billion (31 December 2024: $6.2 billion) due to repayments in CIB, and in Central and other items, which was offset by an increase in WRB mainly due to secured lending. While the WRB stage 3 cover ratio before collateral remained stable at 47.0 per cent (31 December 2024: 46.9 per cent), the stage 3 cover ratio after collateral increased to 85.6 per cent (31 December 2024: 83.1 per cent) driven by the increase of credit impairment provisions and collateral value. Analysis of Stage 2 The key SICR driver which caused exposures to be classified as stage 2 remains an increase in probability of default (PD). The proportion of CIB exposures in stage 2 increased due to PD driven changes. In WRB, the exposures in stage 2 loans with more than 30 days past due remained stable at $0.2 billion (31 December 2024: $0.2 billion). The 'Others' category includes exposures where origination data is incomplete and the exposures are allocated into stage 2. Credit Impairment charges The Group's ongoing credit impairment was a net charge of $336 million (30 June 2024: $240 million). WRB contributed a net charge of $332 million (30 June 2024: $267 million), driven by a high interest rate environment impacting repayments on unsecured portfolio as well as growth in Indonesia partnerships. CIB contributed to a net release of $14 million (30 June 2024: $54 million release) due to $48 million stage 3 releases from the sovereign upgrade of Sri Lanka foreign currency exposures. The non-linearity impact increased impairment charges by $34 million in H1 2025 and $15 million from June 2024, to $77 million (31 December 2024: $43 million; 30 June 2024: $62 million). This reflects an increased probability weighting of the overall downside scenarios from 32 per cent to 45 per cent, given heightened levels of tariffs and geopolitical uncertainty. - page 04 - Commercial Real Estate (CRE) The Group provides loans to CRE counterparties of which $9.5 billion is to counterparties in the CIB segment where the source of repayment is substantially derived from rental or sale of real estate and is secured by real estate collateral. The remaining CRE loans comprise working capital loans to real estate corporates, loans with non-property collateral, unsecured loans and loans to real estate entities of diversified conglomerates. The average LTV ratio of the performing book CRE portfolio has increased to 55 per cent (31 December 2024: 54 per cent). The proportion of loans with an LTV greater than 80 per cent has increased to 5 per cent (31 December 2024: 4 per cent). China CRE Total exposure to China CRE was stable at $1.9 billion (31 December 2024: $2.0 billion). The proportion of credit impaired exposures increased to 73 per cent (31 December 2024: 70 per cent) due to a stage 3 downgrade during the period. Stage 3 provision coverage increased to 89 per cent (31 December 2024: 87 per cent), reflecting increased provision charges during the period. The proportion of the loan book rated as Higher risk decreased to 1.8 per cent (31 December 2024: 2.8 per cent) mainly due to downgrades to stage 3 during the period. The Group continues to hold a judgemental management overlay, which decreased by $12.0 million to $58.0 million (31 December 2024: $70.0 million), reflecting changes in exposure during the period. The Group is further indirectly exposed to China CRE through its associate investment in China Bohai Bank. High carbon sectors Total net on-balance sheet exposure to high carbon sectors increased by $1.9 billion to $27.2 billion (31 December 2024: $25.4 billion). This was driven by exposure increases to portfolios in Oil and Gas at $7.7 billion (31 December 2024: $6.4 billion), CRE at $4.3 billion (31 December 2024: $4.2 billion) and Power at $5.6 billion (31 December 2024: $4.8 billion). The Group monitors the lending to these portfolios against each sector's carbon budget and interim 2030 net zero targets. - page 05 - Maximum exposure to Credit Risk (reviewed) The table below presents the Group's maximum exposure to Credit Risk for its on-balance sheet and off-balance sheet financial instruments as at 30 June 2025, before and after taking into account any collateral held or other Credit Risk mitigation. 30.06.25 31.12.24 Maximum exposure $million Credit risk management Net Exposure $million Maximum exposure $million Credit risk management Net exposure $million Collateral 8 $million Master netting agreements $million Collateral 8 $million Master netting agreements $million On-balance sheet Cash and balances at central banks 80,165 - - 80,165 63,447 - - 63,447 Loans and advances to banks 1 42,386 4,250 - 38,136 43,593 2,946 - 40,647 of which - reverse repurchase agreements and other similar secured lending 7 4,250 4,250 - - 2,946 2,946 - - Loans and advances to customers 1 286,731 125,538 - 161,193 281,032 119,047 - 161,985 of which - reverse repurchase agreements and other similar secured lending 7 4,189 4,189 - - 9,660 9,660 - - Investment securities - Debt securities and other eligible bills 2 157,617 - - 157,617 143,562 - - 143,562 Fair value through profit or loss 3, 7 194,073 90,333 - 103,740 172,031 86,195 - 85,836 Loans and advances to banks 2,393 - - 2,393 2,213 - - 2,213 Loans and advances to customers 8,119 - - 8,119 7,084 - - 7,084 Reverse repurchase agreements and other similar lending 7 90,333 90,333 - - 86,195 86,195 - - Investment securities - Debt securities and other eligible bills 2 93,228 - - 93,228 76,539 - - 76,539 Derivative financial instruments 4, 7 64,225 12,831 48,308 3,086 81,472 15,005 60,280 6,187 Accrued income 2,612 - - 2,612 2,776 - - 2,776 Assets held for sale 9 622 - - 622 889 - - 889 Other assets 5 45,372 - - 45,372 34,585 - - 34,585 Total balance sheet 873,803 232,952 48,308 592,543 823,387 223,193 60,280 539,914 Off-balance sheet 6 Undrawn Commitments 192,947 3,503 - 189,444 182,529 2,489 - 180,040 Financial Guarantees and other equivalents 103,959 2,046 - 101,913 90,632 1,807 - 88,825 Total off-balance sheet 296,906 5,549 - 291,357 273,161 4,296 - 268,865 Total 1,170,709 238,501 48,308 883,900 1,096,548 227,489 60,280 808,779 1 Amounts are net of ECL provisions. An analysis of credit quality is set out in the credit quality analysis section. Further details of collateral held by client segment and stage are set out in the collateral analysis section. The Group also has credit mitigation through Credit Linked Notes as set out below. 2 Excludes equity and other investments of $971 million (31 December 2024: $994 million). Further details are set out in Note 13 financial instruments 3 Excludes equity and other investments of $7,450 million (31 December 2024: $5,486 million). Further details are set out in Note 13 financial instruments 4 The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of the positive and negative mark-to-market values of applicable derivative transactions 5 Other assets include Hong Kong certificates of indebtedness, cash collateral, and acceptances, in addition to unsettled trades and other financial assets 6 Excludes ECL provisions of $236 million (31 December 2024: $255 million) which are reported under Provisions for liabilities and charges 7 Collateral capped at maximum exposure (over-collateralised) 8 Adjusted for over-collateralisation, which has been determined with reference to the drawn and undrawn component as this best reflects the effect on the amount arising from expected credit losses 9 The amount is after ECL provisions. Further details are set out in Note 20 Assets held for sale and associated liabilities - page 06 - Analysis of financial instruments by stage (reviewed) The table below presents the gross and credit impairment balances by stage for the Group's amortised cost and FVOCI financial instruments as at 30 June 2025. 30.06.25 Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Cash and balances at central banks 79,158 - 79,158 417 (3) 414 603 (10) 593 80,178 (13) 80,165 Loans and advances to banks (amortised cost) 41,613 (6) 41,607 737 (2) 735 48 (4) 44 42,398 (12) 42,386 Loans and advances to customers (amortised cost) 273,155 (553) 272,602 12,520 (465) 12,055 6,136 (4,062) 2,074 291,811 (5,080) 286,731 Debt securities and other eligible bills 5 156,264 (29) 1,059 (7) 306 (6) 157,629 (42) Amortised cost 55,128 (11) 55,117 41 (1) 40 53 - 53 55,222 (12) 55,210 FVOCI 2 101,136 (18) 1,018 (6) 253 (6) 102,407 (30) - Accrued income (amortised cost) 4 2,612 2,612 - - 2,612 - 2,612 Assets held for sale 4 556 - 556 62 - 62 45 (41) 4 663 (41) 622 Other assets 45,372 - 45,372 - - - 7 (7) - 45,379 (7) 45,372 Undrawn commitments 3 188,364 (60) 4,546 (37) 37 (1) 192,947 (98) Financial guarantees, trade credits and irrevocable letter of credits 3 101,740 (16) 1,794 (16) 425 (106) 103,959 (138) Total 888,834 (664) 21,135 (530) 7,607 (4,237) 917,576 (5,431) 1 Gross carrying amount for off-balance sheet refers to notional values 2 These instruments are held at fair value on the balance sheet. The ECL provision in respect of debt securities measured at FVOCI is held within the OCI reserve 3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a financial liability and therefore there is no 'net carrying amount'. ECL allowances on off-balance sheet instruments are held as liability provisions to the extent that the drawn and undrawn components of loan exposures can be separately identified. Otherwise they will be reported against the drawn component 4 Stage 1 ECL is not material 5 Stage 3 gross includes $289 million originated credit-impaired debt securities with impairment of $6 million - page 07 - 31.12.24 Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Cash and balances at central banks 62,597 - 62,597 432 (4) 428 426 (4) 422 63,455 (8) 63,447 Loans and advances to banks (amortised cost) 43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593 Loans and advances to customers (amortised cost) 269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032 Debt securities and other eligible bills 5 141,862 (23) 1,614 (4) 103 (2) 143,579 (29) Amortised cost 54,637 (15) 54,622 475 (2) 473 42 - 42 55,154 (17) 55,137 FVOCI 2 87,225 (8) 1,139 (2) 61 (2) 88,425 (12) Accrued income (amortised cost) 4 2,776 2,776 - - 2,776 - 2,776 Assets held for sale 4 840 (7) 833 38 - 38 58 (45) 13 936 (52) 884 Other assets 34,585 - 34,585 - - - 3 (3) - 34,588 (3) 34,585 Undrawn commitments 3 178,516 (50) 4,006 (52) 7 (1) 182,529 (103) Financial guarantees, trade credits and irrevocable letter of credits 3 87,991 (16) 2,038 (7) 603 (129) 90,632 (152) Total 821,477 (589) 19,077 (541) 7,486 (4,137) 848,040 (5,267) 1 Gross carrying amount for off-balance sheet refers to notional values 2 These instruments are held at fair value on the balance sheet. The ECL provision in respect of debt securities measured at FVOCI is held within the OCI reserve 3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a financial liability and therefore there is no 'net carrying amount'. ECL allowances on off-balance sheet instruments are held as liability provisions to the extent that the drawn and undrawn components of loan exposures can be separately identified. Otherwise they will be reported against the drawn component 4 Stage 1 ECL is not material 5 Stage 3 gross includes $59 million originated credit-impaired debt securities with impairment of $Nil million Credit quality analysis (reviewed) Credit quality by client segment For CIB, exposures are analysed by credit grade (CG), which plays a central role in the quality assessment and monitoring of risk. All loans are assigned a CG, which is reviewed periodically and amended in light of changes in the borrower's circumstances or behaviour. CGs 1 to 12 are assigned to stage 1 and stage 2 (performing) clients or accounts, while CGs 13 and 14 are assigned to stage 3 (credit-impaired) clients. Consumer and Business Banking portfolios are analysed by days past due and Private Banking by the type of collateral held. Mapping of credit quality The Group uses the following internal risk mapping to determine the credit quality for loans. Credit quality description Corporate & Investment Banking Private Banking 1 Wealth & Retail Banking 4 Internal grade mapping S&P external ratings equivalent Regulatory PD range (%) Internal ratings Internal grade mapping Strong 1A to 5B AAA/AA+ to BBB-/ BB+ 2 0 to 0.425 Class I and Class IV Current loans (no past dues nor impaired) Satisfactory 6A to 11C BB to CCC+ 3 0.426 to 15.75 Class II and Class III Loans past due till 29 days Higher risk Grade 12 CCC+ to C 15.751 to 99.999 Stressed Assets Group (SAG) Managed Past due loans 30 days and over till 90 days 1 For Private Banking, classes of risk represent the type of collateral held. Class I represents facilities with liquid collateral, such as cash and marketable securities. Class II represents unsecured/partially secured facilities and those with illiquid collateral, such as equity in private enterprises. Class III represents facilities with residential or commercial real estate collateral. Class IV covers margin trading facilities 2 Banks' rating: AAA/AA+ to BB+/BB. Sovereigns' rating: AAA to BB+ 3 Banks' rating: BB to 'CCC+ to C'. Sovereigns' rating: BB+/BB to B-/CCC+ 4 Wealth & Retail Banking excludes Private Banking. Medium enterprise clients within Business Banking are managed using the same internal credit grades as CIB - page 08 - The table below sets out the gross loans and advances held at amortised cost, ECL provisions and expected credit loss coverage by business segment and stage. ECL coverage represents the ECL reported for each segment and stage as a proportion of the gross loan balance for each segment and stage. Loans and advances by client segment (reviewed) Amortised cost 30.06.25 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 41,613 129,064 124,273 1,549 18,269 273,155 188,364 101,740 - Strong 28,979 91,162 118,929 1,528 17,799 229,418 171,907 66,028 - Satisfactory 12,634 37,902 5,344 21 470 43,737 16,457 35,712 Stage 2 737 10,374 2,078 47 21 12,520 4,546 1,794 - Strong 41 1,888 1,563 30 - 3,481 1,144 471 - Satisfactory 263 6,845 146 6 - 6,997 3,133 990 - Higher risk 433 1,641 369 11 21 2,042 269 333 Of which (stage 2): - Less than 30 days past due - 118 146 6 - 270 - - - More than 30 days past due 2 57 369 11 - 437 - - Stage 3, credit-impaired financial assets 48 4,421 1,701 14 - 6,136 37 425 Gross balance�� 42,398 143,859 128,052 1,610 18,290 291,811 192,947 103,959 Stage 1 (6) (124) (403) (26) - (553) (60) (16) - Strong (3) (49) (328) (24) - (401) (34) (7) - Satisfactory (3) (75) (75) (2) - (152) (26) (9) Stage 2 (2) (306) (141) (18) - (465) (37) (16) - Strong - (6) (65) (11) - (82) (4) - - Satisfactory - (209) (38) (2) - (249) (24) (5) - Higher risk (2) (91) (38) (5) - (134) (9) (11) Of which (stage 2): - Less than 30 days past due - (11) (38) (2) - (51) - - - More than 30 days past due - - (38) (5) - (43) - - Stage 3, credit-impaired financial assets (4) (3,251) (800) (11) - (4,062) (1) (106) Total credit impairment (12) (3,681) (1,344) (55) - (5,080) (98) (138) Net carrying value 42,386 140,178 126,708 1,555 18,290 286,731 Stage 1 0.0% 0.1% 0.3% 1.7% 0.0% 0.2% 0.0% 0.0% - Strong 0.0% 0.1% 0.3% 1.6% 0.0% 0.2% 0.0% 0.0% - Satisfactory 0.0% 0.2% 1.4% 9.5% 0.0% 0.3% 0.2% 0.0% Stage 2 0.3% 2.9% 6.8% 38.3% 0.0% 3.7% 0.8% 0.9% - Strong 0.0% 0.3% 4.2% 36.7% 0.0% 2.4% 0.3% 0.0% - Satisfactory 0.0% 3.1% 26.0% 33.3% 0.0% 3.6% 0.8% 0.5% - Higher risk 0.5% 5.5% 10.3% 45.5% 0.0% 6.6% 3.3% 3.3% Of which (stage 2): - Less than 30 days past due 0.0% 9.3% 26.0% 33.3% 0.0% 18.9% 0.0% 0.0% - More than 30 days past due 0.0% 0.0% 10.3% 45.5% 0.0% 9.8% 0.0% 0.0% Stage 3, credit-impaired financial assets (S3) 8.3% 73.5% 47.0% 78.6% 0.0% 66.2% 2.7% 24.9% - Stage 3 Collateral - 294 656 - - 950 - 37 - Stage 3 Cover ratio (after collateral) 8.3% 80.2% 85.6% 78.6% 0.0% 81.7% 2.7% 33.6% Cover ratio 0.0% 2.6% 1.0% 3.4% 0.0% 1.7% 0.1% 0.1% Fair value through profit or loss Performing 36,958 63,870 5 - - 63,875 - Strong 32,385 44,257 4 - - 44,261 - Satisfactory 4,468 19,524 1 - - 19,525 - Higher risk 105 89 - - - 89 Defaulted (CG13-14) - 12 - - - 12 Gross balance (FVTPL) 2 36,958 63,882 5 - - 63,887 Net carrying value (incl FVTPL) 79,344 204,060 126,713 1,555 18,290 350,618 1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $4,189 million under Customers and of $4,250 million under Banks, held at amortised cost 2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $55,768 million under Customers and of $34,565 million under Banks, held at fair value through profit or loss - page 09 - Amortised cost 31.12.24 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 43,208 128,746 117,015 1,383 21,958 269,102 178,516 87,991 - Strong 31,239 90,725 111,706 1,367 21,540 225,338 162,574 56,070 - Satisfactory 11,969 38,021 5,309 16 418 43,764 15,942 31,921 Stage 2 318 8,643 1,905 48 35 10,631 4,006 2,038 - Strong 8 1,229 1,413 31 - 2,673 994 471 - Satisfactory 125 6,665 155 6 - 6,826 2,862 1,403 - Higher risk 185 749 337 11 35 1,132 150 164 Of which (stage 2): - Less than 30 days past due - 55 155 6 - 216 - - - More than 30 days past due 2 7 337 11 - 355 - - Stage 3, credit-impaired financial assets 83 4,476 1,617 12 98 6,203 7 603 Gross balance�� 43,609 141,865 120,537 1,443 22,091 285,936 182,529 90,632 Stage 1 (10) (80) (383) (20) - (483) (50) (16) - Strong (7) (28) (325) (18) - (371) (33) (7) - Satisfactory (3) (52) (58) (2) - (112) (17) (9) Stage 2 (1) (303) (147) (23) - (473) (52) (7) - Strong - (41) (70) (14) - (125) (10) - - Satisfactory (1) (218) (32) (3) - (253) (32) (4) - Higher risk - (44) (45) (6) - (95) (10) (3) Of which (stage 2): - Less than 30 days past due - (1) (32) (3) - (36) - - - More than 30 days past due - - (45) (6) - (51) - - Stage 3, credit-impaired financial assets (5) (3,178) (759) (11) - (3,948) (1) (129) Total credit impairment (16) (3,561) (1,289) (54) - (4,904) (103) (152) Net carrying value 43,593 138,304 119,248 1,389 22,091 281,032 - - Stage 1 0.0% 0.1% 0.3% 1.4% 0.0% 0.2% 0.0% 0.0% - Strong 0.0% 0.0% 0.3% 1.3% 0.0% 0.2% 0.0% 0.0% - Satisfactory 0.0% 0.1% 1.1% 12.5% 0.0% 0.3% 0.1% 0.0% Stage 2 0.3% 3.6% 7.7% 47.9% 0.0% 4.4% 1.3% 0.3% - Strong 0.0% 3.3% 5.0% 45.2% 0.0% 4.7% 1.0% 0.0% - Satisfactory 0.8% 3.3% 20.6% 50.0% 0.0% 3.7% 1.1% 0.3% - Higher risk 0.0% 5.9% 13.4% 54.5% 0.0% 8.4% 6.7% 1.8% Of which (stage 2): - Less than 30 days past due 0.0% 1.8% 20.6% 50.0% 0.0% 16.7% 0.0% 0.0% - More than 30 days past due 0.0% 0.0% 13.4% 54.5% 0.0% 14.4% 0.0% 0.0% Stage 3, credit-impaired financial assets (S3) 6.0% 71.0% 46.9% 91.7% 0.0% 63.6% 14.3% 21.4% - Stage 3 Collateral 1 297 584 - - 881 - 46 - Stage 3 Cover ratio (after collateral) 7.2% 77.6% 83.1% 91.7% 0.0% 77.8% 14.3% 29.0% Cover ratio 0.0% 2.5% 1.1% 3.7% 0.0% 1.7% 0.1% 0.2% Fair value through profit or loss Performing 36,967 58,506 6 - - 58,512 - Strong 30,799 38,084 3 - - 38,087 - Satisfactory 6,158 20,314 3 - - 20,317 - Higher risk 10 108 - - - 108 Defaulted (CG13-14) - 13 - - - 13 Gross balance (FVTPL) 2 36,967 58,519 6 - - 58,525 Net carrying value (incl FVTPL) 80,560 196,823 119,254 1,389 22,091 339,557 1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $9,660 million under Customers and of $2,946 million under Banks, held at amortised cost 2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $51,441 million under Customers and of $34,754 million under Banks, held at fair value through profit or loss - page 10 - Loans and advances by client segment credit quality analysis Credit grade Regulatory 1-year PD range (%) S&P external ratings equivalent 30.06.25 Corporate & Investment Banking and Central & other items Gross Credit impairment Stage 1 $million Stage 2 $million Stage 3 $million Total $million Stage 1 $million Stage 2 $million Stage 3 $million Total $million Strong 108,961 1,888 - 110,849 (49) (6) - (55) 1A-2B 0-0.045 A+ and above 30,153 36 - 30,189 (1) - - (1) 3A-4A 0.046-0.110 A/A- to BBB+/BBB 34,562 544 - 35,106 (7) - - (7) 4B-5B 0.111-0.425 BBB to BBB-/BB+ 44,246 1,308 - 45,554 (41) (6) - (47) Satisfactory 38,372 6,845 - 45,217 (75) (209) - (284) 6A-7B 0.426-1.350 BB+/BB to BB- 25,061 1,643 - 26,704 (28) (13) - (41) 8A-9B 1.351-4.000 BB-/B+ to B 8,524 3,005 - 11,529 (26) (166) - (192) 10A-11C 4.001-15.75 B/B- to B-/CCC+ 4,787 2,197 - 6,984 (21) (30) - (51) Higher risk - 1,662 - 1,662 - (91) - (91) 12 15.751-99.999 CCC/C - 1,662 - 1,662 - (91) - (91) Credit-impaired - - 4,421 4,421 - - (3,251) (3,251) 13-14 100 Defaulted - - 4,421 4,421 - - (3,251) (3,251) Total 147,333 10,395 4,421 162,149 (124) (306) (3,251) (3,681) 31.12.24 Strong 112,265 1,229 - 113,494 (28) (41) - (69) 1A-2B 0-0.045 A+ and above 32,160 31 - 32,191 (2) - - (2) 3A-4A 0.046-0.110 A/A- to BBB+/BBB 40,712 524 - 41,236 (8) (33) - (41) 4B-5B 0.111-0.425 BBB to BBB-/BB+ 39,393 674 - 40,067 (18) (8) - (26) Satisfactory 38,439 6,665 - 45,104 (52) (218) - (270) 6A-7B 0.426-1.350 BB+/BB to BB- 24,928 2,677 - 27,605 (21) (24) - (45) 8A-9B 1.351-4.000 BB-/B+ to B 9,514 2,618 - 12,132 (20) (169) - (189) 10A-11C 4.001-5.75 B/B- to B-/CCC+ 3,997 1,370 - 5,367 (11) (25) - (36) Higher risk - 784 - 784 - (44) - (44) 12 15.751-99.999 CCC/C - 784 - 784 - (44) - (44) Credit-impaired - - 4,574 4,574 - - (3,178) (3,178) 13-14 100 Defaulted - - 4,574 4,574 - - (3,178) (3,178) Total 150,704 8,678 4,574 163,956 (80) (303) (3,178) (3,561) - page 11 - Undrawn commitment and financial guarantees - by client segment credit quality Credit grade Regulatory 1-year PD range (%) S&P external ratings equivalent 30.06.25 Corporate & Investment Banking and Central & other items Notional Credit impairment Stage 1 $million Stage 2 $million Stage 3 $million Total $million Stage 1 $million Stage 2 $million Stage 3 $million Total $million Strong 160,041 1,392 - 161,433 (25) (1) - (26) 1A-2B 0-0.045 A+ and above 34,283 252 - 34,535 (1) - - (1) 3A-4A 0.046-0.110 A/A- to BBB+/BBB 58,220 594 - 58,814 (4) - - (4) 4B-5B 0.111-0.425 BBB to BBB-/BB+ 67,538 546 - 68,084 (20) (1) - (21) Satisfactory 50,662 4,059 - 54,721 (31) (27) - (58) 6A-7B 0.426-1.350 BB+/BB to BB- 39,644 1,435 - 41,079 (18) (6) - (24) 8A-9B 1.351-4.000 BB-/B+ to B 8,070 2,030 - 10,100 (9) (14) - (23) 10A-11C 4.001-15.75 B/B- to B-/CCC+ 2,948 594 - 3,542 (4) (7) - (11) Higher risk - 572 - 572 - (18) - (18) 12 15.751-99.999 CCC+/C - 572 - 572 - (18) - (18) Credit-impaired - - 450 450 - - (107) (107) 13-14 100 Defaulted - - 450 450 - - (107) (107) Total 210,703 6,023 450 217,176 (56) (46) (107) (209) 31.12.24 Strong 140,733 1,265 - 141,998 (22) (6) - (28) 1A-2B 0-0.045 A+ and above 29,623 280 - 29,903 (1) - - (1) 3A-4A 0.046-0.110 A/A- to BBB+/BBB 53,568 492 - 54,060 (4) - - (4) 4B-5B 0.111-0.425 BBB to BBB-/BB+ 57,542 493 - 58,035 (17) (6) - (23) Satisfactory 46,394 4,200 - 50,594 (23) (33) - (56) 6A-7B 0.426-1.350 BB+/BB to BB- 2,544 1,065 - 3,609 (4) (6) - (10) 8A-9B 1.351-4.000 BB-/B+ to B 30,438 1,162 - 31,600 (11) (16) - (27) 10A-11C 4.001-15.75 B/B- to B-/CCC+ 13,412 1,973 - 15,385 (8) (11) - (19) Higher risk - 286 - 286 - (11) - (11) 12 15.751-99.999 CCC+/C - 286 - 286 - (11) - (11) Credit-impaired - - 593 593 - - (129) (129) 13-14 100 Defaulted - - 593 593 - - (129) (129) Total 187,127 5,751 593 193,471 (45) (50) (129) (224) - page 12 - Loans and advances analysis by client segment, credit quality and key geography Corporate & Investment Banking and Central & other items 30.06.25 Gross Credit impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Total Coverage % Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million Im-paired $million Total $million Hong Kong 28,893 12,244 41,137 226 1,847 367 2,440 1,432 1,432 (18) (18) (36) - (103) (63) (166) (1,240) (1,240) (3.2)% Corporate Lending 14,112 5,695 19,807 213 1,219 367 1,799 1,419 1,419 (15) (6) (21) - (100) (63) (163) (1,239) (1,239) (6.2)% Non Corporate Lending 1 5,741 2,541 8,282 12 620 - 632 13 13 (1) (11) (12) - (3) - (3) (1) (1) (0.2)% Banks 9,040 4,008 13,048 1 8 - 9 - - (2) (1) (3) - - - - - - (0.0)% Singapore 30,742 8,835 39,577 1,023 1,065 225 2,313 241 241 (5) (11) (16) (2) (4) - (6) (192) (192) (0.5)% Corporate Lending 8,803 4,083 12,886 975 603 21 1,599 196 196 (4) (9) (13) (2) (4) - (6) (192) (192) (1.4)% Non Corporate Lending 1 17,532 973 18,505 32 420 180 632 - - (1) (1) (2) - - - - - - (0.0)% Banks 4,407 3,779 8,186 16 42 24 82 45 45 - (1) (1) - - - - - - (0.0)% China 10,610 2,164 12,774 - 273 37 310 161 161 (3) (1) (4) - - (1) (1) (86) (86) (0.7)% Corporate Lending 5,403 1,472 6,875 - 270 37 307 159 159 (2) (1) (3) - - (1) (1) (84) (84) (1.2)% Non Corporate Lending 1 3,402 404 3,806 - - - - - - (1) - (1) - - - - - - (0.0)% Banks 1,805 288 2,093 - 3 - 3 2 2 - - - - - - - (2) (2) (0.1)% UK 14,382 6,804 21,186 57 1,792 574 2,423 868 868 (2) (2) (4) (1) (24) - (25) (389) (389) (1.7)% Corporate Lending 6,096 3,379 9,475 57 1,165 497 1,719 779 779 (2) (2) (4) (1) (23) - (24) (363) (363) (3.3)% Non Corporate Lending 1 6,224 1,363 7,587 - 611 74 685 88 88 - - - - (1) - (1) (25) (25) (0.3)% Banks 2,062 2,062 4,124 - 16 3 19 1 1 - - - - - - - (1) (1) (0.0)% US 18,653 3,705 22,358 215 329 - 544 3 3 (5) (3) (8) (1) (3) - (4) (4) (4) (0.1)% Corporate Lending 6,819 2,262 9,081 148 230 - 378 - - (4) (2) (6) (1) (3) - (4) (1) (1) (0.1)% Non Corporate Lending 1 11,190 262 11,452 67 69 - 136 3 3 (1) (1) (2) - - - - (3) (3) (0.0)% Banks 644 1,181 1,825 - 30 - 30 - - - - - - - - - - - 0.0% Others 34,660 17,254 51,914 408 1,802 892 3,102 1,764 1,764 (19) (43) (62) (2) (75) (29) (106) (1,344) (1,344) (2.7)% Corporate Lending 19,043 13,399 32,442 372 1,245 456 2,073 1,592 1,592 (18) (33) (51) (2) (63) (27) (92) (1,186) (1,186) (3.7)% Non Corporate Lending 1 4,596 2,539 7,135 26 379 30 435 172 172 - (9) (9) - (12) - (12) (157) (157) (2.3)% Banks 11,021 1,316 12,337 10 178 406 594 - - (1) (1) (2) - - (2) (2) (1) (1) (0.0)% Total 137,940 51,006 188,946 1,929 7,108 2,095 11,132 4,469 4,469 (52) (78) (130) (6) (209) (93) (308) (3,255) (3,255) (1.8)% 1 Include financing, insurance and non-banking corporations and governments - page 13 - Corporate & Investment Banking and Central & other items 2 31.12.24 Gross Credit impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Total coverage % Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million Im-paired $million Total $million Hong Kong 29,643 12,079 41,722 230 1,539 64 1,833 1,308 1,308 (8) (8) (16) (33) (107) (9) (149) (1,157) (1,157) (2.9)% Corporate Lending 13,230 6,180 19,410 225 1,329 64 1,618 1,296 1,296 (5) (4) (9) (33) (102) (9) (144) (1,157) (1,157) (5.9)% Non Corporate Lending 1 4,526 2,730 7,256 4 206 - 210 12 12 (1) (3) (4) - (5) - (5) - - (0.1)% Banks 11,887 3,169 15,056 1 4 - 5 - - (2) (1) (3) - - - - - - (0.0)% Singapore 34,114 8,762 42,876 500 1,019 35 1,554 337 337 - (8) (8) (4) (14) - (18) (196) (196) (0.5)% Corporate Lending 9,545 4,457 14,002 469 658 35 1,162 265 265 - (6) (6) (4) (14) - (18) (195) (195) (1.4)% Non Corporate Lending 1 20,156 1,091 21,247 29 358 - 387 - - - (1) (1) - - - - - - (0.0)% Banks 4,413 3,214 7,627 2 3 - 5 72 72 - (1) (1) - - - - (1) (1) (0.0)% China 10,370 2,744 13,114 49 133 14 196 171 171 (3) (1) (4) - - - - (86) (86) (0.7)% Corporate Lending 4,934 2,143 7,077 49 133 14 196 168 168 (1) (1) (2) - - - - (83) (83) (1.1)% Non Corporate Lending 1 3,241 363 3,604 - - - - - - (1) - (1) - - - - - - (0.0)% Banks 2,195 238 2,433 - - - - 3 3 (1) - (1) - - - - (3) (3) (0.2)% UK 21,555 5,985 27,540 48 1,940 141 2,129 756 756 (10) (4) (14) - (27) (6) (33) (258) (258) (1.0)% Corporate Lending 2,331 2,082 4,413 47 1,433 27 1,507 658 658 (9) (3) (12) - (27) (6) (33) (237) (237) (4.3)% Non Corporate Lending 1 17,040 1,753 18,793 1 507 112 620 97 97 (1) (1) (2) - - - - (21) (21) (0.1)% Banks 2,184 2,150 4,334 - - 2 2 1 1 - - - - - - - - - 0.0% US 15,707 4,400 20,107 92 433 33 558 4 4 (4) (1) (5) (1) (1) - (2) (3) (3) (0.0)% Corporate Lending 5,334 2,705 8,039 77 322 - 399 1 1 (3) (1) (4) (1) (1) - (2) - - (0.1)% Non Corporate Lending 1 9,688 123 9,811 15 79 - 94 3 3 (1) - (1) - - - - (3) (3) (0.0)% Banks 685 1,572 2,257 - 32 33 65 - - - - - - - - - - - 0.0% Others 32,116 16,437 48,553 318 1,726 681 2,725 2,081 2,081 (10) (33) (43) (3) (70) (29) (102) (1,483) (1,483) (3.1)% Corporate Lending 21,909 12,516 34,425 291 1,030 490 1,811 1,883 1,883 (6) (26) (32) (3) (38) (28) (69) (1,333) (1,333) (3.8)% Non Corporate Lending 1 332 2,296 2,628 22 610 41 673 191 191 - (6) (6) - (31) (1) (32) (149) (149) (5.4)% Banks 9,875 1,625 11,500 5 86 150 241 7 7 (4) (1) (5) - (1) - (1) (1) (1) (0.1)% Total 143,505 50,407 193,912 1,237 6,790 968 8,995 4,657 4,657 (35) (55) (90) (41) (219) (44) (304) (3,183) (3,183) (1.7)% 1 Include financing, insurance and non-banking corporations and governments 2 Amounts have been re-presented from management view to financial booking basis in line with RNS on Re-Presentation of Financial Information issued on 2 April 2025 - page 14 - Wealth & Retail Banking and Ventures 30.06.25 Gross Credit impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Total coverage % Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher risk $million Total $million Im-paired $million Total $million Hong Kong 42,020 269 42,289 324 49 54 427 231 231 (62) (21) (83) (25) (14) (10) (49) (78) (78) (0.5)% Mortgages 30,622 213 30,835 99 30 22 151 71 71 - - - - - - - (3) (3) (0.0)% Credit cards 3,999 24 4,023 93 17 19 129 14 14 (32) (17) (49) (19) (13) (7) (39) (14) (14) (2.4)% Others 7,399 32 7,431 132 2 13 147 146 146 (30) (4) (34) (6) (1) (3) (10) (61) (61) (1.4)% Singapore 29,807 76 29,883 436 40 43 519 334 334 (38) (36) (74) (1) (7) (8) (16) (269) (269) (1.2)% Mortgages 14,571 18 14,589 193 34 14 241 11 11 - - - - - - - (5) (5) (0.0)% Credit cards 2,427 37 2,464 17 5 22 44 19 19 (18) (35) (53) - (7) (6) (13) (19) (19) (3.4)% Others 12,809 21 12,830 226 1 7 234 304 304 (20) (1) (21) (1) - (2) (3) (245) (245) (2.0)% Korea 21,492 269 21,761 327 10 43 380 134 134 (25) (3) (28) (21) (13) (1) (35) (50) (50) (0.5)% Mortgages 16,435 200 16,635 265 9 15 289 77 77 (1) - (1) - - - - (4) (4) (0.0)% Credit cards 24 1 25 1 - - 1 - - - - - - - - - - - 0.0% Others 5,033 68 5,101 61 1 28 90 57 57 (24) (3) (27) (21) (13) (1) (35) (46) (46) (2.1)% Rest of World 27,138 4,751 31,889 506 53 240 799 1,016 1,016 (227) (17) (244) (29) (6) (24) (59) (414) (414) (2.1)% Mortgages 16,006 2,143 18,149 300 36 143 479 489 489 (4) (3) (7) - - (1) (1) (127) (127) (0.7)% Credit cards 1,311 41 1,352 39 1 14 54 35 35 (26) (4) (30) (15) - (10) (25) (25) (25) (5.6)% Others 9,821 2,567 12,388 167 16 83 266 492 492 (197) (10) (207) (14) (6) (13) (33) (262) (262) (3.8)% Total 120,457 5,365 125,822 1,593 152 380 2,125 1,715 1,715 (352) (77) (429) (76) (40) (43) (159) (811) (811) (1.1)% Wealth & Retail Banking and Ventures 31.12.24 Gross Credit impairment Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Total Coverage % Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million De-faulted $million Total $million Strong $million Satis-factory $million Total $million Strong $million Satis-factory $million Higher Risk $million Total $million Im-paired $million Total $million Hong Kong 41,906 320 42,226 288 47 40 375 228 228 (59) (14) (73) (33) (20) (4) (57) (69) (69) (0.5)% Mortgages 31,080 265 31,345 55 14 24 93 75 75 - - - - - - - (7) (7) (0.0)% Credit cards 4,210 19 4,229 93 30 1 124 14 14 (36) (11) (47) (27) (19) (1) (47) (14) (14) (2.5)% Others 6,616 36 6,652 140 3 15 158 139 139 (23) (3) (26) (6) (1) (3) (10) (48) (48) (1.2)% Singapore 26,755 52 26,807 441 39 34 514 312 312 (29) (26) (55) (6) (6) (6) (18) (265) (265) (1.2)% Mortgages 13,531 12 13,543 160 32 15 207 9 9 - - - - - - - (4) (4) (0.0)% Credit cards 2,248 25 2,273 14 5 16 35 16 16 (9) (26) (35) (5) (5) (4) (14) (19) (19) (2.9)% Others 10,976 15 10,991 267 2 3 272 287 287 (20) - (20) (1) (1) (2) (4) (242) (242) (2.3)% Korea 18,062 220 18,282 378 9 22 409 112 112 (22) (1) (23) (28) (4) (1) (33) (33) (33) (0.5)% Mortgages 13,198 171 13,369 250 8 17 275 62 62 - - - - - - - (2) (2) (0.0)% Credit cards 36 1 37 1 - - 1 - - (1) - (1) - - - - - - (2.6)% Others 4,828 48 4,876 127 1 5 133 50 50 (21) (1) (22) (28) (4) (1) (33) (31) (31) (1.7)% Rest of World 26,085 4,998 31,083 338 76 241 655 977 977 (239) (13) (252) (39) (5) (18) (62) (403) (403) (2.2)% Mortgages 15,079 2,007 17,086 136 43 141 320 459 459 (4) (2) (6) - - (1) (1) (124) (124) (0.7)% Credit cards 1,148 351 1,499 29 12 19 60 40 40 (33) (1) (34) (21) - (1) (22) (27) (27) (5.2)% Others 9,858 2,640 12,498 173 21 81 275 478 478 (202) (10) (212) (18) (5) (16) (39) (252) (252) (3.8)% Total 112,808 5,590 118,398 1,445 171 337 1,953 1,629 1,629 (349) (54) (403) (106) (35) (29) (170) (770) (770) (1.1)% - page 15 - Undrawn commitment and financial guarantees - by client segment credit quality Amortised cost Wealth & Retail Banking and Ventures 30.06.25 Notional ECL Stage 1 $million Stage 2 $million Stage 3 $million Total $million Stage 1 $million Stage 2 $million Stage 3 $million Total $million Strong 70,794 113 - 70,907 (15) (3) - (18) Satisfactory 625 12 - 637 (3) (2) - (5) Higher risk - 30 - 30 - (2) - (2) Impaired - - 3 3 - - - - Total 71,419 155 3 71,577 (18) (7) - (25) Amortised cost 31.12.24 Notional ECL Stage 1 $million Stage 2 $million Stage 3 $million Total $million Stage 1 $million Stage 2 $million Stage 3 $million Total $million Strong 70,595 100 - 70,695 (15) (3) - (18) Satisfactory 850 11 - 861 (5) (1) - (6) Higher risk - 21 - 21 - (3) - (3) Impaired - - 8 8 - - - - Total 71,445 132 8 71,585 (20) (7) - (27) Movement in gross exposures and credit impairment for loans and advances, debt securities, undrawn commitments and financial guarantees (reviewed) The tables overleaf set out the movement in gross exposures and credit impairment by stage in respect of amortised cost loans to banks and customers, undrawn commitments, financial guarantees and debt securities classified at amortised cost and FVOCI. The tables are presented for the Group and separately for CIB and WRB (which also includes a separate presentation for secured and unsecured exposures). Methodology The movement lines within the tables are an aggregation of monthly movements over the year and will therefore reflect the accumulation of multiple trades during the year. The credit impairment charge in the income statement comprises the amounts within the boxes in the table below, less recoveries of amounts previously written off. Discount unwind is reported in net interest income and related to stage 3 financial instruments only. The approach for determining the key line items in the tables is set out below. �� Transfers - transfers between stages are deemed to occur at the beginning of a month based on prior month closing balances. �� Net remeasurement from stage changes - the remeasurement of credit impairment provisions arising from a change in stage is reported within the stage that the assets are transferred to. For example, assets transferred into stage 2 are remeasured from a 12-month to a lifetime ECL, with the effect of remeasurement reported in stage 2. For stage 3, this represents the initial remeasurement from specific provisions recognised on individual assets transferred into stage 3 in the year. �� Net changes in exposures - new business written less repayments in the year. Within stage 1, new business written will attract up to 12 months of ECL charges. Repayments of non-amortising loans (primarily within CIB) will have low amounts of ECL provisions attributed to them, due to the release of provisions over the term to maturity. In stages 2 and 3, the net change in exposures reflect repayments although stage 2 may include new facilities where clients are on non-purely precautionary early alert, are CG 12, or when non-investment grade debt securities are acquired. - page 16 - �� Changes in risk parameters - for stages 1 and 2, this reflects changes in the probability of default (PD), loss given default (LGD) and exposure at default (EAD) of assets during the year, which includes the impact of releasing provisions over the term to maturity. It also includes the effect of changes in forecasts of macroeconomic variables during the year. In stage 3, this line represents additional specific provisions recognised on exposures held within stage 3. �� Interest due but not paid - change in contractual amount of interest due in stage 3 financial instruments but not paid, being the net of accruals, repayments and write-offs, together with the corresponding change in credit impairment. Changes to ECL models, which incorporate changes to model approaches and methodologies, are not reported as a separate line item as these have an impact over a number of lines and stages. Movements during the year Stage 1 gross exposures increased by $40.5 billion to $761.1 billion (31 December 2024: $720.7 billion). CIB exposure increased by $22.3 billion to $389.4 billion (31 December 2024: $367.1 billion), mainly due to an increase in exposures to financial guarantees and undrawn commitments. WRB increased by $6.5 billion to $186.1 billion (31 December 2024: $179.6 billion), mainly due to an increase in the mortgage portfolio across Korea, Taiwan and Singapore and in Secured wealth products due to the higher demand in Singapore. Total stage 1 provisions increased by $82 million to $664 million (31 December 2024: $582 million). CIB provisions increased by $55 million to $188 million (31 December 2024: $133 million), due to portfolio movements and new exposures. WRB provisions increased by $20 million to $412 million (31 December 2024: $392 million), due to Secured wealth and unsecured lending portfolios. Stage 2 gross exposures increased by $2.0 billion to $20.7 billion (31 December 2024: $18.6 billion), primarily driven by exposure increases in CIB to Sovereign related and Commercial real estate clients. WRB exposures increased by $0.2 billion to $2.2 billion (31 December 2024: $2.0 billion), mainly due to the China secured portfolio. Stage 2 provisions decreased by $10 million to $527 million (31 December 2024: $537 million). CIB provisions decreased by $9 million to $353 million (31 December 2024: $362 million) due to China CRE overlay releases. WRB provisions decreased by $5 million to $146 million (31 December 2024: $151 million), mainly in the unsecured portfolio. The non-linearity impact increased stage 1 and 2 provisions by $34 million to $77 million (31 December 2024: $43 million). This reflects an increased probability weighting of the overall downside scenarios from 32 per cent to 45 per cent, given heightened levels of tariffs and geopolitical uncertainty. Stage 3 gross exposures for CIB decreased by $0.2 billion to $4.9 billion (31 December 2024: $5.2 billion) due to repayments. CIB provisions remained stable at $3.4 billion (31 December 2024: $3.3 billion). WRB stage 3 loans increased by $0.1 billion to $1.7 billion (31 December 2024: $1.6 billion) mainly in the secured portfolio but provisions remained stable at $0.8 billion (31 December 2024: $0.8 billion). - page 17 - All segments (reviewed) Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 5 Total Gross balance 3 $million Total credit impair-ment $million Net $million Gross balance 3 $million Total credit impair-ment $million Net $million Gross balance 3 $million Total credit impair-ment $million Net $million Gross balance 3 $million Total credit impair-ment $million Net $million As at 1 January 2024 723,876 (526) 723,350 22,268 (517) 21,751 8,144 (4,499) 3,645 754,288 (5,542) 748,746 Transfers to stage 1 16,433 (543) 15,890 (16,423) 543 (15,880) (10) - (10) - - - Transfers to stage 2 (33,301) 128 (33,173) 33,770 (153) 33,617 (469) 25 (444) - - - Transfers to stage 3 (1,631) 63 (1,568) (146) 168 22 1,777 (231) 1,546 - - - Net change in exposures 29,928 (173) 29,755 (18,435) 80 (18,355) (1,383) 622 (761) 10,110 529 10,639 Net remeasurement from stage changes - 61 61 - (185) (185) - (203) (203) - (327) (327) Changes in risk parameters - 84 84 - (242) (242) - (873) (873) - (1,031) (1,031) Write-offs - - - - - - (1,260) 1,260 - (1,260) 1,260 - Interest due but unpaid - - - - - - 53 (53) - 53 (53) - Discount unwind - - - - - - - 135 135 - 135 135 Exchange translation differences and other movements�� (14,626) 324 (14,302) (2,427) (231) (2,658) 147 (268) (121) (16,906) (175) (17,081) As at 31 December 2024�� 720,679 (582) 720,097 18,607 (537) 18,070 6,999 (4,085) 2,914 746,285 (5,204) 741,081 Income statement ECL (charge)/release6 (28) (347) (454) (829) Recoveries of amounts previously written off - - 279 279 Total credit impairment (charge)/release4 (28) (347) (175) (550) As at 1 January 2025 720,679 (582) 720,097 18,607 (537) 18,070 6,999 (4,085) 2,914 746,285 (5,204) 741,081 Transfers to stage 1 5,946 (408) 5,538 (5,945) 408 (5,537) (1) - (1) - - - Transfers to stage 2 (18,668) 57 (18,611) 18,954 (71) 18,883 (286) 14 (272) - - - Transfers to stage 3 (70) - (70) (988) 145 (843) 1,058 (145) 913 - - - Net change in exposures 31,424 (129) 31,295 (9,472) (40) (9,512) (553) 304 (249) 21,399 135 21,534 Net remeasurement from stage changes - 43 43 - (88) (88) - (25) (25) - (70) (70) Changes in risk parameters - 66 66 - (28) (28) - (606) (606) - (568) (568) Write-offs - - - - - - (518) 518 - (518) 518 - Interest due but unpaid - - - - - - 88 (88) - 88 (88) - Discount unwind - - - - - - - 55 55 - 55 55 Exchange translation differences and other movements�� 21,825 289 22,114 (500) (316) (816) 165 (121) 44 21,490 (148) 21,342 As at 30 June 2025�� 761,136 (664) 760,472 20,656 (527) 20,129 6,952 (4,179) 2,773 788,744 (5,370) 783,374 Income statement ECL (charge)/release 6 (20) (156) (327) (503) Recoveries of amounts previously written off - - 175 175 Total credit impairment (charge)/release 4 (20) (156) (152) (328) 1 Includes fair value adjustments and amortisation on debt securities 2 Excludes Cash and balances at central banks, Accrued income, Assets held for sale and Other assets gross balances of $128,832 million (31 December 2024: $101,755 million) and Total credit impairment of $61 million (31 December 2024: $63 million) 3 The gross balance includes the notional amount of off balance sheet instruments 4 Reported basis 5 Stage 3 gross includes $289 million (31 December 2024: $59 million) originated credit-impaired debt securities with impairment of $6 million (31 December 2024: $Nil) 6 Does not include charge relating to Other assets of $8 million (31 December 2024: $3 million) - page 18 - Corporate & Investment Banking (reviewed) Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million As at 1 January 2024 337,189 (151) 337,038 16,873 (318) 16,555 6,256 (3,651) 2,605 360,318 (4,120) 356,198 Transfers to stage 1 10,390 (245) 10,145 (10,390) 245 (10,145) - - - - - - Transfers to stage 2 (25,698) 47 (25,651) 25,810 (58) 25,752 (112) 11 (101) - - - Transfers to stage 3 (186) (4) (190) (186) 22 (164) 372 (18) 354 - - - Net change in exposures 50,866 (50) 50,816 (16,508) 88 (16,420) (1,063) 607 (456) 33,295 645 33,940 Net remeasurement from stage changes - 16 16 (4) (36) (40) - (100) (100) (4) (120) (124) Changes in risk parameters 2 - 32 32 - (129) (129) - (324) (324) - (421) (421) Write-offs - - - - - - (321) 321 - (321) 321 - Interest due but unpaid - - - - - - 25 (25) - 25 (25) - Discount unwind - - - - - - - 104 104 - 104 104 Exchange translation differences and other movements 2 (5,455) 222 (5,233) (726) (176) (902) 13 (237) (224) (6,168) (191) (6,359) As at 31 December 2024 367,106 (133) 366,973 14,869 (362) 14,507 5,170 (3,312) 1,858 387,145 (3,807) 383,338 Income statement ECL (charge)/release 2 (2) (77) 183 104 Recoveries of amounts previously written off - - 26 26 Total credit impairment (charge)/release (2) (77) 209 130 As at 1 January 2025 367,106 (133) 366,973 14,869 (362) 14,507 5,170 (3,312) 1,858 387,145 (3,807) 383,338 Transfers to stage 1 3,585 (281) 3,304 (3,585) 281 (3,304) - - - - - - Transfers to stage 2 (14,748) 8 (14,740) 14,975 (22) 14,953 (227) 14 (213) - - - Transfers to stage 3 (2) - (2) (326) 39 (287) 328 (39) 289 - - - Net change in exposures 25,369 (71) 25,298 (8,166) (28) (8,194) (347) 310 (37) 16,856 211 17,067 Net remeasurement from stage changes - - - - - - - 14 14 - 14 14 Changes in risk parameters - 24 24 - (12) (12) - (256) (256) - (244) (244) Write-offs - - - - - - (39) 39 - (39) 39 - Interest due but unpaid - - - - - - 76 (76) - 76 (76) - Discount unwind - - - - - - - 39 39 - 39 39 Exchange translation differences and other movements 8,050 265 8,315 (470) (249) (719) (33) (95) (128) 7,547 (79) 7,468 As at 30 June 2025 389,360 (188) 389,172 17,297 (353) 16,944 4,928 (3,362) 1,566 411,585 (3,903) 407,682 Income statement ECL (charge)/release (47) (40) 68 (19) Recoveries of amounts previously written off - - 29 29 Total credit impairment (charge)/release (47) (40) 97 10 1 The gross balance includes the notional amount of off balance sheet instruments 2 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 - page 19 - Wealth & Retail Banking (reviewed) Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million As at 1 January 2024 190,999 (325) 190,674 2,472 (140) 2,332 1,485 (759) 726 194,956 (1,224) 193,732 Transfers to stage 1 5,126 (288) 4,838 (5,116) 288 (4,828) (10) - (10) - - - Transfers to stage 2 (7,393) 80 (7,313) 7,525 (80) 7,445 (132) - (132) - - - Transfers to stage 3 (98) 1 (97) (1,254) 211 (1,043) 1,352 (212) 1,140 - - - Net change in exposures (3,926) (89) (4,015) (1,505) 21 (1,484) (431) - (431) (5,862) (68) (5,930) Net remeasurement from stage changes - 29 29 - (144) (144) - (44) (44) - (159) (159) Changes in risk parameters 2 - 35 35 - (152) (152) - (531) (531) - (648) (648) Write-offs - - - - - - (808) 808 - (808) 808 - Interest due but unpaid - - - - - - 28 (28) - 28 (28) - Discount unwind - - - - - - - 30 30 - 30 30 Exchange translation differences and other movements 2 (5,128) 165 (4,963) (92) (155) (247) 139 (22) 117 (5,081) (12) (5,093) As at 31 December 2024 179,580 (392) 179,188 2,030 (151) 1,879 1,623 (758) 865 183,233 (1,301) 181,932 Income statement ECL (charge)/release 2 (25) (275) (575) (875) Recoveries of amounts previously written off - - 253 253 Total credit impairment (charge)/release (25) (275) (322) (622) As at 1 January 2025 179,580 (392) 179,188 2,030 (151) 1,879 1,623 (758) 865 183,233 (1,301) 181,932 Transfers to stage 1 1,871 (118) 1,753 (1,870) 118 (1,752) (1) - (1) - - - Transfers to stage 2 (3,647) 43 (3,604) 3,706 (43) 3,663 (59) - (59) - - - Transfers to stage 3 (20) - (20) (690) 100 (590) 710 (100) 610 - - - Net change in exposures 1,592 (29) 1,563 (1,039) 7 (1,032) (312) - (312) 241 (22) 219 Net remeasurement from stage changes - 22 22 - (88) (88) - (12) (12) - (78) (78) Changes in risk parameters - 7 7 - (19) (19) - (363) (363) - (375) (375) Write-offs - - - - - - (454) 454 - (454) 454 - Interest due but unpaid - - - - - - 11 (11) - 11 (11) - Discount unwind - - - - - - - 16 16 - 16 16 Exchange translation differences and other movements 6,679 55 6,734 87 (70) 17 185 (25) 160 6,951 (40) 6,911 As at 30 June 2025 186,055 (412) 185,643 2,224 (146) 2,078 1,703 (799) 904 189,982 (1,357) 188,625 Income statement ECL (charge)/release - (100) (375) (475) Recoveries of amounts previously written off - - 146 146 Total credit impairment (charge)/release - (100) (229) (329) 1 The gross balance includes the notional amount of off-balance sheet instruments 2 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 - page 20 - Wealth & Retail Banking - Secured (reviewed) Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million As at 1 January 2024 129,798 (33) 129,765 1,827 (16) 1,811 1,062 (525) 537 132,687 (574) 132,113 Transfers to stage 1 3,839 (23) 3,816 (3,836) 23 (3,813) (3) - (3) - - - Transfers to stage 2 (4,952) 13 (4,939) 5,054 (13) 5,041 (102) - (102) - - - Transfers to stage 3 (43) - (43) (566) 19 (547) 609 (19) 590 - - - Net change in exposures 2,570 (11) 2,559 (917) 8 (909) (268) - (268) 1,385 (3) 1,382 Net remeasurement from stage changes - 6 6 - (15) (15) - (7) (7) - (16) (16) Changes in risk parameters 2 - 10 10 - (6) (6) - (123) (123) - (119) (119) Write-offs - - - - - - (114) 114 - (114) 114 - Interest due but unpaid - - - - - - 53 (53) - 53 (53) - Discount unwind - - - - - - - 16 16 - 16 16 Exchange translation differences and other movements 2 (4,496) (10) (4,506) (57) (31) (88) (33) 41 8 (4,586) - (4,586) As at 31 December 2024 126,716 (48) 126,668 1,505 (31) 1,474 1,204 (556) 648 129,425 (635) 128,790 Income statement ECL (charge)/release 2 5 (13) (130) (138) Recoveries of amounts previously written off - - 80 80 Total credit impairment (charge)/release 5 (13) (50) (58) As at 1 January 2025 126,716 (48) 126,668 1,505 (31) 1,474 1,204 (556) 648 129,425 (635) 128,790 Transfers to stage 1 1,322 (6) 1,316 (1,321) 6 (1,315) (1) - (1) - - - Transfers to stage 2 (2,521) 3 (2,518) 2,568 (3) 2,565 (47) - (47) - - - Transfers to stage 3 (14) - (14) (338) 7 (331) 352 (7) 345 - - - Net change in exposures 2,916 (8) 2,908 (749) (2) (751) (255) - (255) 1,912 (10) 1,902 Net remeasurement from stage changes - 3 3 - (18) (18) - (7) (7) - (22) (22) Changes in risk parameters - (14) (14) - 25 25 - (129) (129) - (118) (118) Write-offs - - - - - - (114) 114 - (114) 114 - Interest due but unpaid - - - - - - 53 (53) - 53 (53) - Discount unwind - - - - - - - 9 9 - 9 9 Exchange translation differences and other movements 5,735 13 5,748 69 (14) 55 63 62 125 5,867 61 5,928 As at 30 June 2025 134,154 (57) 134,097 1,734 (30) 1,704 1,255 (567) 688 137,143 (654) 136,489 Income statement ECL (charge)/release (19) 5 (136) (150) Recoveries of amounts previously written off - - 46 46 Total credit impairment (charge)/release (19) 5 (90) (104) 1 The gross balance includes the notional amount of off balance sheet instruments 2 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 - page 21 - Wealth & Retail Banking - Unsecured (reviewed) Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million Gross balance 1 $million Total credit impair-ment $million Net $million As at 1 January 2024 61,201 (292) 60,909 645 (124) 521 423 (234) 189 62,269 (650) 61,619 Transfers to stage 1 1,287 (265) 1,022 (1,280) 265 (1,015) (7) - (7) - - - Transfers to stage 2 (2,441) 67 (2,374) 2,471 (67) 2,404 (30) - (30) - - - Transfers to stage 3 (55) 1 (54) (688) 192 (496) 743 (193) 550 - - - Net change in exposures (6,496) (78) (6,574) (588) 13 (575) (163) - (163) (7,247) (65) (7,312) Net remeasurement from stage changes - 23 23 - (129) (129) - (37) (37) - (143) (143) Changes in risk parameters - 25 25 - (146) (146) - (408) (408) - (529) (529) Write-offs - - - - - - (694) 694 - (694) 694 - Interest due but unpaid - - - - - - (25) 25 - (25) 25 - Discount unwind - - - - - - - 14 14 - 14 14 Exchange translation differences and other movements (632) 175 (457) (35) (124) (159) 172 (63) 109 (495) (12) (507) As at 31 December 2024 52,864 (344) 52,520 525 (120) 405 419 (202) 217 53,808 (666) 53,142 Income statement ECL (charge)/release (30) (262) (445) (737) Recoveries of amounts previously written off - - 172 172 Total credit impairment (charge)/release (30) (262) (273) (565) As at 1 January 2025 52,864 (344) 52,520 525 (120) 405 419 (202) 217 53,808 (666) 53,142 Transfers to stage 1 549 (112) 437 (549) 112 (437) - - - - - - Transfers to stage 2 (1,126) 40 (1,086) 1,138 (40) 1,098 (12) - (12) - - - Transfers to stage 3 (6) - (6) (352) 93 (259) 358 (93) 265 - - - Net change in exposures (1,324) (21) (1,345) (290) 9 (281) (57) - (57) (1,671) (12) (1,683) Net remeasurement from stage changes - 19 19 - (70) (70) - (5) (5) - (56) (56) Changes in risk parameters - 21 21 - (44) (44) - (234) (234) - (257) (257) Write-offs - - - - - - (340) 340 - (340) 340 - Interest due but unpaid - - - - - - (42) 42 - (42) 42 - Discount unwind - - - - - - - 7 7 - 7 7 Exchange translation differences and other movements 944 42 986 18 (56) (38) 122 (87) 35 1,084 (101) 983 As at 30 June 2025 51,901 (355) 51,546 490 (116) 374 448 (232) 216 52,839 (703) 52,136 Income statement ECL (charge)/release 19 (105) (239) (325) Recoveries of amounts previously written off - - 100 100 Total credit impairment (charge)/release 19 (105) (139) (225) 1 The gross balance includes the notional amount of off balance sheet instruments - page 22 - Analysis of stage 2 balances The table below analyses total stage 2 gross on-and off-balance sheet exposures and associated expected credit provisions by the key SICR driver that caused the exposures to be classified as stage 2 as at 30 June 2025 and 31 December 2024 for each segment. Where multiple drivers apply, the exposure is allocated based on the table order. For example, a loan may have breached the PD thresholds and could also be on non-purely precautionary early alert; in this instance, the exposure is reported under 'Increase in PD'. 30.06.25 Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items 1 Total Gross $million ECL $million Cove-rage % Gross $million ECL $million Cove-rage % Gross $million ECL $million Cove-rage % Gross $million ECL $million Cove-rage % Gross $million ECL $million Cove-rage % Increase in PD 9,051 137 1.5% 1,598 121 7.6% 51 17 33.3% 188 4 2.1% 10,888 279 2.6% Non-purely precautionary early alert 3,911 27 0.7% 34 - 0.0% - - 0.0% 159 - 0.0% 4,104 27 0.7% Higher risk (CG12) 1,618 45 2.8% 20 - 0.0% - - 0.0% 1,183 7 0.6% 2,821 52 1.8% Top up/Sell down (Private Banking) - - 0.0% 187 - 0.0% - - 0.0% - - 0.0% 187 - 0.0% Others 2,717 20 0.7% 180 5 2.8% - - 0.0% 26 - 0.0% 2,923 25 0.9% 30 days past due - - 0.0% 205 17 8.3% 7 3 42.9% - - 0.0% 212 20 9.4% Management overlay - 124 0.0% - 3 0.0% - - 0.0% - - 0.0% - 127 0.0% Total stage 2 17,297 353 2.0% 2,224 146 6.6% 58 20 34.5% 1,556 11 0.7% 21,135 530 2.5% 31.12.24 Increase in PD 8,465 112 1.3% 1,366 104 7.6% 48 20 31.3% 154 - 0.0% 10,033 236 2.4% Non-purely precautionary early alert 3,473 44 1.3% 30 - 0.0% - - 0.0% - - 0.0% 3,503 44 1.3% Higher risk (CG12) 686 24 3.5% 18 - 0.0% - - 0.0% 1,488 1 0.4% 2,192 25 1.1% Top up/Sell down (Private Banking) - - 0.0% 254 1 0.4% - - 0.0% - - 0.0% 254 1 0.4% Others 2,245 25 1.1% 150 5 3.3% - - 0.0% 482 - 0.0% 2,877 30 1.0% 30 days past due - - 0.0% 212 19 9.0% 6 4 66.7% - - 0.0% 218 23 10.6% Management overlay - 157 0.0% - 22 0.0% - 3 0.0% - - 0.0% - 182 0.0% Total stage 2 14,869 362 2.4% 2,030 151 7.4% 54 27 40.7% 2,124 1 0.3% 19,077 541 2.8% 1 Includes Gross and ECL for Cash and balances at central banks and Assets held for sale Credit impairment charge (reviewed) The table below analyses credit impairment charges or releases of the ongoing business portfolio and restructuring business portfolio for the half year ended 30 June 2025. 30.06.25 30.06.24 1 Stage 1 & 2 $million Stage 3 $million Total $million Stage 1 & 2 $million Stage 3 $million Total $million Ongoing business portfolio Corporate & Investment Banking 85 (99) (14) (51) (3) (54) Wealth & Retail Banking 103 229 332 123 144 267 Ventures (3) 27 24 7 36 43 Central & other items (6) - (6) (6) (1) (7) Credit impairment charge 179 157 336 73 176 249 Restructuring business portfolio Others (2) 2 - 2 (11) (9) Credit impairment charge/(release) (2) 2 - 2 (11) (9) Total credit impairment charge 177 159 336 75 165 240 1 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025, with no change in total credit impairment charge - page 23 - Problem credit management and provisioning (reviewed) Forborne and other modified loans by client segment A forborne loan arises when a concession has been made to the contractual terms of a loan in response to a customer's financial difficulties. Net forborne loans increased by $192 million to $976 million (31 December 2024: $784 billion), largely in CIB due to new loans classified as performing forborne in Hong Kong. Non-performing forborne loans stock increased by $41 million to $773 million (31 December 2024: $732 million), mainly in WRB. Amortised cost 30.06.25 31.12.24 Corporate & Investment Banking $million Wealth & Retail Banking $million Total $million Corporate & Investment Banking $million Wealth & Retail Banking $million Total $million Gross stage 1 and 2 forborne loans 224 53 277 17 36 53 Modification of terms and conditions 1 20 53 73 17 36 53 Refinancing 2 204 - 204 - - - Impairment provisions (73) (1) (74) - (1) (1) Modification of terms and conditions 1 (1) (1) (2) - (1) (1) Refinancing 2 (72) - (72) - - - Net stage 1 and 2 forborne loans 151 52 203 17 35 52 Collateral - 43 43 - 27 27 Gross stage 3 forborne loans 2,098 309 2,407 2,065 258 2,323 Modification of terms and conditions 1 1,802 309 2,111 1,824 258 2,082 Refinancing 2 296 - 296 241 - 241 Impairment provisions (1,512) (122) (1,634) (1,481) (110) (1,591) Modification of terms and conditions 1 (1,254) (122) (1,376) (1,242) (110) (1,352) Refinancing 2 (258) - (258) (239) - (239) Net stage 3 forborne loans 586 187 773 584 148 732 Collateral 200 24 224 172 55 227 Net carrying value of forborne loans 737 239 976 601 183 784 1 Modification of terms is any contractual change apart from refinancing, as a result of credit stress of the counterparty, i.e. interest reductions, loan covenant waivers 2 Refinancing is a new contract to a borrower in credit stress, such that they are refinanced and can pay other debt contracts that they were unable to honour Forborne and other modified loans by key geography Net forborne loans increased by $192 million to $976 million (31 December 2024: $784 million), mainly on the performing forborne loans in Hong Kong. Amortised cost 30.06.25 31.12.24 1 Hong Kong $million Korea $million China $million Singa-pore $million UK $million US $million Other $million Total $million Hong Kong $million Korea $million China $million Singa-pore $million UK $million US $million Other $million Total $million Performing forborne loans 134 14 - 3 - - 52 203 2 8 - 3 - - 39 52 Stage 3 forborne loans 113 24 75 27 102 1 431 773 110 25 85 25 81 1 405 732 Net forborne loans 247 38 75 30 102 1 483 976 112 33 85 28 81 1 444 784 1 Amounts have been re-presented from management view to financial booking basis in line with RNS on Re-Presentation of Financial Information issued on 2 April 2025 Credit Risk mitigation Potential credit losses from any given account, customer or portfolio are mitigated using a range of tools such as collateral, netting arrangements, credit insurance and credit derivatives, and guarantees. The reliance that can be placed on these mitigants is carefully assessed in consideration of legal certainty and enforceability, market valuation correlation and counterparty risk of the guarantor. - page 24 - Collateral held on loans and advances The table below details collateral held against exposures, separately disclosing stage 2 and stage 3 exposure and corresponding collateral. Amortised cost 30.06.25 Net amount outstanding Collateral Net exposure Total $million Stage 2 financial assets $million Credit-impaired financial assets (S3) $million Total 2 $million Stage 2 financial |assets $million Credit-impaired financial assets (S3) $million Total $million Stage 2 financial assets $million Credit-impaired financial assets (S3) $million Corporate & Investment Banking 1 182,564 10,803 1,214 33,937 3,688 294 148,627 7,115 920 Wealth & Retail Banking 126,708 1,937 901 95,041 1,128 656 31,667 809 245 Ventures 1,555 29 3 - - - 1,555 29 3 Central & other items 18,290 21 - 810 21 - 17,480 - - Total 329,117 12,790 2,118 129,788 4,837 950 199,329 7,953 1,168 31.12.24 Corporate & Investment Banking 1 181,897 8,657 1,376 36,750 3,052 298 145,147 5,605 1,078 Wealth & Retail Banking 119,248 1,758 858 85,163 891 584 34,085 867 274 Ventures 1,389 25 1 - - - 1,389 25 1 Central & other items 22,091 35 98 80 35 - 22,011 - 98 Total 324,625 10,475 2,333 121,993 3,978 882 202,632 6,497 1,451 1 Includes loans and advances to banks 2 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures Collateral - Corporate & Investment Banking (reviewed) Our underwriting standards encourage taking specific charges on assets and we consistently seek high-quality, investment grade collateral. Collateral taken for longer-term and sub-investment grade corporate loans decreased to 47 per cent (31 December 2024: 49 per cent). The unadjusted market value of collateral across all asset types, in respect of CIB, without adjusting for over collateralisation, decreased to $378 billion (31 December 2024: $383 billion) predominantly due to a decrease in reverse repos. 87.0 per cent (31 December 2024: 88.5 per cent) of tangible collateral excluding reverse repurchase agreements and financial guarantees held comprises of physical assets with the remainder held in cash. Overall collateral decreased by $2.8 billion to $33.9 billion (31 December 2024: $36.8 billion) due to a reduction in reverse repos. Non-tangible collateral, such as guarantees and standby letters of credit, is also held against corporate exposures, although the financial effect of this type of collateral is less significant in terms of recoveries. However, this is considered when determining the loss given default and other credit-related factors. Collateral is also held against off-balance sheet exposures, including undrawn commitments and trade-related instruments. - page 25 - Corporate & Investment Banking Amortised cost 30.06.25 $million 31.12.24 $million Maximum exposure 182,564 181,897 Property 9,917 8,504 Plant, machinery and other stock 901 935 Cash 2,367 1,973 Reverse repos 7,641 12,568 AAA 587 - AA- to AA+ 776 938 A- to A+ 3,034 8,324 BBB- to BBB+ 578 1,437 Lower than BBB- - 95 Unrated 2,666 1,774 Financial guarantees and insurance 8,027 7,075 Commodities 9 33 Ships and aircraft 5,075 5,662 Total value of collateral 1 33,937 36,750 Net exposure 148,627 145,147 1 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures Collateral - Wealth & Retail Banking (reviewed) In WRB, fully secured products remained stable at 86 per cent of the total portfolio (31 December 2024: 85 per cent). The following table presents an analysis of loans to individuals by product; split between fully secured, partially secured and unsecured. Amortised cost 30.06.25 31.12.24 Fully secured 1 $million Partially secured 1 $million Unsecured $million Total 2 $million Fully secured 1 $million Partially secured 1 $million Unsecured $million Total�� $million Maximum exposure 109,035 662 17,011 126,708 101,264 536 17,448 119,248 Loans to individuals Mortgages 81,868 - - 81,868 76,696 - - 76,696 CCPL5 - - 15,830 15,830 - - 16,343 16,343 Secured wealth products 24,458 - - 24,458 21,928 - - 21,928 Other 4,5 2,709 662 1,181 4,552 2,640 536 1,105 4,281 Total collateral 2 95,041 85,163 Net exposure 3 31,667 34,085 Percentage of total loans 86% 1% 13% 85% 0% 15% 1 Secured loans are fully secured if the fair value of the collateral is equal to or greater than the loan at the time of origination. All other secured loans are considered to be partially secured 2 Collateral values are adjusted where appropriate in accordance with our risk mitigation policy and for the effect of over-collateralisation 3 Amounts net of ECL 4 Includes Auto Loans previously presented separately. Prior period has been represented 5 Prior period has been represented between CCPL and Other under Fully secured Mortgage loan-to-value ratios by geography (reviewed) Loan-to-value (LTV) ratios measure the ratio of the current mortgage outstanding to the current fair value of the properties on which they are secured. An analysis of LTV ratios by geography for the mortgage portfolio is presented in the table below. For the majority of mortgage loans, the value of property held as security significantly exceeds the principal outstanding of the loan. The average LTV of the overall mortgage portfolio remains stable at 49.0 per cent (31 December 2024: 48.9 per cent). The Hong Kong mortgage portfolio represents 32 per cent of total WRB mortgage portfolio and the increase in LTV from 58.6 per cent to 59.4 per cent was primarily due to a decrease in property prices. However, 29 per cent of the Hong Kong mortgage exposure is backed by credit insurance and, specifically, 94 per cent of mortgage exposure with LTV greater than 80 per cent is backed by credit insurance. - page 26 - Our other key markets continued to have low portfolio LTVs (Korea and Singapore at 42.9 per cent and 42.5 per cent respectively). Korea portfolio LTV increased slightly by 0.8 per cent (31 December 2024: 42.1 per cent) primarily due to government relaxations on LTV. Amortised cost 30.06.25 31.12.24 Hong Kong % Gross Singapore % Gross Korea % Gross Other % Gross Total % Gross Hong Kong % Gross Singapore % Gross Korea % Gross Other % Gross Total % Gross Less than 50 per cent 39.2 53.6 61.3 48.6 50.4 40.9 52.7 64.1 50.2 51.3 50 per cent to 59 per cent 17.1 21.2 13.6 14.9 16.2 17.6 21.8 13.2 15.4 16.5 60 per cent to 69 per cent 13.5 14.0 15.0 17.5 14.9 12.7 15.6 13.5 17.0 14.3 70 per cent to 79 per cent 6.7 11.0 9.0 13.3 9.5 5.5 9.6 8.3 12.7 8.5 80 per cent to 89 per cent 5.2 0.1 0.9 5.0 3.0 5.1 0.1 0.8 4.1 2.9 90 per cent to 99 per cent 8.5 0.0 0.1 0.4 2.8 8.2 0.0 0.1 0.5 3.0 100 per cent and greater 9.8 0.1 0.1 0.2 3.2 10.1 0.1 0.1 0.2 3.5 Average portfolio loan-to-value 59.4 42.5 42.9 48.4 49.0 58.6 42.5 42.1 48.0 48.9 Loans to individuals - mortgages ($million) 31,055 14,836 16,997 18,980 81,868 31,506 13,756 13,703 17,731 76,696 Collateral and other credit enhancements possessed or called upon (reviewed) The Group obtains assets by taking possession of collateral (such as property, plant and equipment) or calling upon other credit enhancements (such as guarantees). Repossessed properties are sold in an orderly fashion. Where the proceeds are in excess of the outstanding loan balance, the excess is returned to the borrower. Certain equity securities acquired may be held by the Group for investment purposes and are classified as fair value through profit or loss, and the related loan written off. The carrying value of collateral possessed that is held on the Group's balance sheet at the end of 30 June 2025 was $nil (31 December 2024: $24 million). Other Credit risk mitigation (reviewed) Other forms of credit risk mitigation are set out below. Credit default swaps The Group has entered into credit default swaps for portfolio management purposes, referencing loan assets with a notional value of $5 billion (31 December 2024: $3.5 billion). These credit default swaps are accounted for as financial guarantees as per IFRS 9 as they will only reimburse the holder for an incurred loss on an underlying debt instrument. The Group continues to hold the underlying assets referenced in the credit default swaps and it continues to be exposed to related Credit Risk and Foreign Exchange Rate Risk on these assets. Credit linked notes The Group has issued credit linked notes for portfolio management purposes, referencing loan assets with a notional value of $21.6 billion (31 December 2024: $18.6 billion). The Group continues to hold the underlying assets for which the credit linked notes provide mitigation. The credit linked notes of $1.8 billion (31 December 2024: $2.0 billion) are recognised as a financial liability at amortised cost on the balance sheet and are adjusted, where appropriate, for reductions in expected future cash flows with a corresponding credit impairment in the income statement. Off-balance sheet exposures For certain types of exposures, such as letters of credit and guarantees, the Group obtains collateral such as cash depending on internal Credit Risk assessments, as well as in the case of letters of credit holding legal title to the underlying assets should a default take place. Other portfolio analysis This section provides analysis of credit quality by industry, and industry and retail products analysis of loans and advances by key geography. - page 27 - Credit quality by industry Loans and advances This section provides an analysis of the Group's amortised cost portfolio by industry on a gross, total credit impairment and net basis. Amortised cost 30.06.25 Stage 1 Stage 2 Stage 3 Total Gross balance $million Total credit impair-ment $million Net carrying amount $million Gross balance $million Total credit impair-ment $million Net carrying amount $million Gross balance $million Total credit impair-ment $million Net carrying amount $million Gross balance $million Total credit impair-ment $million Net carrying amount $million Industry: Energy 12,862 (18) 12,844 709 (58) 651 797 (532) 265 14,368 (608) 13,760 Manufacturing 20,884 (12) 20,872 901 (14) 887 403 (309) 94 22,188 (335) 21,853 Financing, insurance and non-banking 33,065 (21) 33,044 1,124 (3) 1,121 175 (161) 14 34,364 (185) 34,179 Transport, telecom and utilities 16,723 (16) 16,707 2,309 (38) 2,271 396 (100) 296 19,428 (154) 19,274 Food and household products 8,846 (7) 8,839 338 (15) 323 212 (200) 12 9,396 (222) 9,174 Commercial real estate 11,977 (27) 11,950 2,139 (142) 1,997 1,609 (1,336) 273 15,725 (1,505) 14,220 Mining and quarrying 5,283 (3) 5,280 200 (5) 195 54 (51) 3 5,537 (59) 5,478 Consumer durables 6,969 (8) 6,961 229 (7) 222 254 (241) 13 7,452 (256) 7,196 Construction 1,949 (2) 1,947 484 (4) 480 161 (153) 8 2,594 (159) 2,435 Trading companies & distributors 524 - 524 12 (1) 11 94 (54) 40 630 (55) 575 Government 23,700 (5) 23,695 1,397 (14) 1,383 101 (24) 77 25,198 (43) 25,155 Other 4,551 (5) 4,546 553 (5) 548 165 (90) 75 5,269 (100) 5,169 Total 147,333 (124) 147,209 10,395 (306) 10,089 4,421 (3,251) 1,170 162,149 (3,681) 158,468 Retail Products: Mortgage 80,210 (9) 80,201 1,160 (3) 1,157 648 (138) 510 82,018 (150) 81,868 Credit Cards 7,866 (134) 7,732 229 (79) 150 69 (58) 11 8,164 (271) 7,893 Personal Loan and other unsecured lending 9,375 (230) 9,145 228 (50) 178 306 (137) 169 9,909 (417) 9,492 Secured wealth products 23,985 (43) 23,942 349 (4) 345 532 (361) 171 24,866 (408) 24,458 Other 4,386 (13) 4,373 159 (23) 136 160 (117) 43 4,705 (153) 4,552 Total 125,822 (429) 125,393 2,125 (159) 1,966 1,715 (811) 904 129,662 (1,399) 128,263 Net carrying value (customers)�� 273,155 (553) 272,602 12,520 (465) 12,055 6,136 (4,062) 2,074 291,811 (5,080) 286,731 Net carrying value (Banks) 1 41,613 (6) 41,607 737 (2) 735 48 (4) 44 42,398 (12) 42,386 1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $4,189 million for customers and $4,250 million for Banks - page 28 - Amortised cost 31.12.24 Stage 1 Stage 2 Stage 3 Total Gross balance $million Total credit impair-ment $million Net carrying amount $million Gross balance $million Total credit impair-ment $million Net carrying amount $million Gross balance $million Total credit impair-ment $million Net carrying amount $million Gross balance $million Total credit impair-ment $million Net carrying amount $million Industry: Energy 12,147 (9) 12,138 468 (57) 411 870 (559) 311 13,485 (625) 12,860 Manufacturing 19,942 (12) 19,930 840 (16) 824 418 (305) 113 21,200 (333) 20,867 Financing, insurance and non-banking 34,452 (16) 34,436 1,238 (6) 1,232 154 (142) 12 35,844 (164) 35,680 Transport, telecom and utilities 16,099 (11) 16,088 2,309 (32) 2,277 330 (85) 245 18,738 (128) 18,610 Food and household products 8,425 (8) 8,417 267 (8) 259 251 (198) 53 8,943 (214) 8,729 Commercial real estate 12,135 (10) 12,125 1,714 (126) 1,588 1,485 (1,265) 220 15,334 (1,401) 13,933 Mining and quarrying 5,542 (3) 5,539 287 (12) 275 124 (57) 67 5,953 (72) 5,881 Consumer durables 5,988 (6) 5,982 218 (26) 192 292 (259) 33 6,498 (291) 6,207 Construction 1,925 (2) 1,923 528 (5) 523 171 (160) 11 2,624 (167) 2,457 Trading companies & distributors 589 - 589 24 (1) 23 88 (48) 40 701 (49) 652 Government 28,870 - 28,870 441 (12) 429 205 (18) 187 29,516 (30) 29,486 Other 4,590 (3) 4,587 344 (2) 342 186 (82) 104 5,120 (87) 5,033 Total 150,704 (80) 150,624 8,678 (303) 8,375 4,574 (3,178) 1,396 163,956 (3,561) 160,395 Retail Products: Mortgage 75,340 (8) 75,332 896 (2) 894 606 (136) 470 76,842 (146) 76,696 Credit Cards 8,037 (121) 7,916 222 (80) 142 71 (60) 11 8,330 (261) 8,069 Personal Loan and other unsecured lending3 9,563 (228) 9,335 236 (53) 183 274 (129) 145 10,073 (410) 9,663 Secured wealth products 21,404 (37) 21,367 402 (6) 396 518 (353) 165 22,324 (396) 21,928 Other 2,3 4,054 (9) 4,045 197 (29) 168 160 (92) 68 4,411 (130) 4,281 Total 118,398 (403) 117,995 1,953 (170) 1,783 1,629 (770) 859 121,980 (1,343) 120,637 Net carrying value (customers)�� 269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032 Net carrying value (Banks) 1 43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593 1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $9,660 million for customers and $2,946 million for Banks 2 Includes Auto Loans previously presented separately. Prior period has been represented 3 Prior period has been represented between Personal Loan and other unsecured lending and Other Industry and Retail Products analysis of loans and advances by key geography This section provides an analysis of the Group's amortised cost loan portfolio, net of provisions, by industry and geography. The Manufacturing sector group is spread across a diverse range of industries, including automobiles and components, capital goods, pharmaceuticals, biotech and life sciences, technology hardware and equipment, chemicals, paper products and packaging, with lending spread over 3,052 clients. - page 29 - Corporate & Investment Banking and Central & other items Amortised Cost 30.06.25 31.12.24 1 Hong Kong $million China $million Singa-pore $million UK $million US $million Other $million Total $million Hong Kong $million China $million Singa-pore $million UK $million US $million Other $million Total $million Energy 2,003 82 3,240 2,969 1,658 3,808 13,760 1,036 60 3,089 3,666 1,771 3,238 12,860 Manufacturing 4,179 4,340 2,105 831 2,875 7,523 21,853 4,077 4,200 1,655 660 2,307 7,968 20,867 Financing, insurance and non-banking 4,089 3,780 3,132 6,895 11,584 4,699 34,179 3,633 3,486 2,401 12,282 9,900 3,978 35,680 Transport, telecom and utilities 5,153 268 4,059 2,465 902 6,427 19,274 5,131 612 3,766 2,596 880 5,625 18,610 Food and household products 489 314 1,705 1,447 865 4,354 9,174 1,038 428 1,472 1,151 685 3,955 8,729 Commercial Real estate 4,193 320 1,040 1,496 1,978 5,193 14,220 4,512 334 1,421 1,107 1,575 4,984 13,933 Mining and Quarrying 518 718 501 1,405 102 2,234 5,478 608 606 866 1,644 214 1,943 5,881 Consumer durables 3,461 346 358 97 423 2,511 7,196 2,780 293 504 154 481 1,995 6,207 Construction 285 124 352 136 240 1,298 2,435 318 156 482 96 247 1,158 2,457 Trading Companies & Distributors 56 115 99 31 49 225 575 95 103 106 31 40 277 652 Government 4,821 26 16,003 1,440 3 2,862 25,155 3,836 117 20,266 1,671 4 3,592 29,486 Other 1,266 625 1,011 704 355 1,208 5,169 1,419 563 816 724 233 1,278 5,033 Net Loans and advances to Customers 30,513 11,058 33,605 19,916 21,034 42,342 158,468 28,483 10,958 36,844 25,782 18,337 39,991 160,395 Net Loans and advances to Banks 13,054 2,096 8,312 4,143 1,855 12,926 42,386 15,058 2,432 7,701 4,337 2,322 11,743 43,593 1 Amounts have been re-presented from management view to financial booking basis in line with RNS on Re-Presentation of Financial Information issued on 2 April 2025 and also to include Central & others amounts Wealth & Retail Banking and Ventures Amortised Cost 30.06.25 31.12.24 2 Hong Kong $million Korea $million Singapore $million Other $million Total $million Hong Kong $million Korea $million Singapore $million Other $million Total $million Mortgages 31,055 16,997 14,836 18,980 81,868 31,506 13,703 13,756 17,731 76,696 Credit Cards 4,063 25 2,441 1,364 7,893 4,262 38 2,252 1,517 8,069 Personal Loans and other unsecured lending3 1,057 2,838 336 5,261 9,492 1,057 2,796 301 5,509 9,663 Secured wealth products 5,976 24 12,605 5,853 24,458 5,229 24 10,793 5,882 21,928 Other Retail 1,3 586 2,278 159 1,529 4,552 579 2,153 194 1,355 4,281 Net Loans and advances to Customers 42,737 22,162 30,377 32,987 128,263 42,633 18,714 27,296 31,994 120,637 1 Includes Auto Loans previously presented separately. Prior period has been represented 2 Prior year has been represented to include Ventures 3 Prior period has been represented between Personal Loans and other unsecured lending and Other Retail High carbon sectors Sectors are identified and grouped as per the International Standard Industrial Classification (ISIC) system and exposure numbers have been updated to include all in-scope ISIC codes used for target setting among the high carbon sectors. The maximum exposures shown in the table include loans and advances to customers at amortised cost, Fair Value through profit or loss, and committed facilities available as per IFRS 9 - Financial Instruments. - page 30 - Maximum exposure Amortised Cost 30.06.25 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 manufacturers 3,960 395 3,565 4,066 717 4,783 8,348 Aviation 1,698 1,042 656 856 881 1,737 2,393 Steel 1,615 354 1,261 807 357 1,164 2,425 Coal Mining 1 1 - - - - - Aluminium 1,263 48 1,215 303 65 368 1,583 Cement 691 65 626 946 244 1,190 1,816 Shipping 6,826 4,458 2,368 2,572 361 2,933 5,301 Commercial Real Estate 8,292 3,981 4,311 3,273 410 3,683 7,994 Oil & Gas 8,668 991 7,677 8,689 7,025 15,714 23,391 Power 6,888 1,318 5,570 4,916 1,103 6,019 11,589 Total 1 39,902 12,653 27,249 26,428 11,163 37,591 64,840 Total Corporate & Investment Banking 2 204,061 27,787 176,274 135,007 94,237 229,244 405,518 Total Group 3 429,962 129,788 300,174 209,765 103,840 313,605 613,779 31.12.24 Industry: Automotive manufacturers 3,881 69 3,812 3,331 605 3,936 7,748 Aviation 1,829 960 869 842 928 1,770 2,639 Steel 1,526 316 1,210 816 325 1,141 2,351 Coal Mining 25 - 25 - - - 25 Aluminium 1,341 32 1,309 354 53 407 1,716 Cement 709 55 654 637 267 904 1,558 Shipping 7,038 5,037 2,001 2,176 397 2,573 4,574 Commercial Real Estate 7,635 3,400 4,235 2,758 684 3,442 7,677 Oil & Gas 7,421 988 6,433 7,928 7,079 15,007 21,440 Power 6,341 1,500 4,841 4,538 1,124 5,662 10,503 Total 1 37,746 12,357 25,389 23,380 11,462 34,842 60,231 Total Corporate & Investment Banking 2 196,823 32,152 164,671 118,106 81,132 199,238 363,909 Total Group 3 420,117 121,993 298,124 193,115 90,602 283,717 581,841 1 Maximum on Balance sheet exposure includes FVTPL amount of High Carbon sector is $644 million (31 December 2024: $749 million) 2 Include on balance sheet FVTPL amount of $63,882 million (31 December 2024: $ 58,519 million) for Corporate & Investment Banking loans to customers 3 Total Group includes net loans and advances to banks and net loans and advances to customers held at amortised cost of $42,386 million (31 December 2024: $43,593 million) and $286,731 (31 December 2024: $281,032 million) respectively and loans to banks and loans and advances to customers held at FVTPL of $36,958 million (31 December 2024: $ 36,967 million) and $63,887 million (31 December 2024: $ 58,525 million) respectively. Refer to the credit quality table below Maturity and expected credit loss for high-carbon sectors Sector 30.06.25 31.12.24 Loans and advances (Drawn funding) $million Maturity Buckets 1 Expected Credit Loss $million Loans and advances (Drawn funding) $million Maturity Buckets 1 Expected Credit Loss $million Less than 1 year $million More than 1 to 5 years $million More than 5 years $million Less than 1 year $million More than 1 to 5 years $million More than 5 years $million Automotive Manufacturers 3,961 3,511 372 78 1 3,883 3,458 369 56 2 Aviation 1,704 405 56 1,243 6 1,833 231 404 1,198 4 Cement 731 372 359 - 40 724 356 368 - 15 Coal Mining 15 15 - - 14 38 25 13 - 13 Steel 1,676 927 156 593 61 1,598 941 133 524 72 Aluminium 1,271 1,116 155 - 8 1,352 1,089 177 86 11 Oil & Gas 8,823 2,678 2,630 3,515 155 7,580 2,601 2,407 2,572 159 Power 6,957 1,899 1,688 3,370 69 6,401 1,700 1,404 3,297 60 Shipping 6,845 1,070 2,170 3,605 19 7,053 1,035 2,450 3,568 15 Commercial Real Estate 8,456 4,104 4,147 205 164 7,773 3,880 3,680 213 138 Total balance 1 40,439 16,097 11,733 12,609 537 38,235 15,316 11,405 11,514 489 1 Gross of credit impairment - page 31 - Sectors of interest Commercial Real Estate 30.06.25 Maximum on Balance Sheet Exposure (net of credit impairment) 1 $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 Commercial Real Estate 14,561 6,637 7,924 5,894 713 6,607 14,531 31.12.24 Commercial Real Estate 14,037 5,947 8,090 4,932 670 5,602 13,692 1 Includes net loans and advances of $14,220 million (31 December 2024: $13,933 million) as detailed in the table below. Analysis of credit quality of loans and advances of Commercial Real Estate Amortised Costs 30.06.25 Gross $million 31.12.24 Gross $million Strong 7,707 7,222 Satisfactory 6,005 6,515 Higher risk 403 112 Credit impaired (stage 3) 1,609 1,485 Total Gross Balance 15,724 15,334 Strong (24) (83) Satisfactory (83) (44) Higher risk (61) (9) Credit impaired (stage 3) (1,336) (1,265) Total Credit Impairment (1,504) (1,401) Total Net of Credit Impairment 14,220 13,933 Strong 0.3% 1.1% Satisfactory 1.4% 0.7% Higher risk 15.1% 8.0% Credit impaired (stage 3) 83.0% 85.1% Cover Ratio 9.6% 9.1% An analysis of the net CRE loans and advances balance by key geography, is set out below. China commercial real estate The table below represents the on and off-balance sheet items that are exposed to China CRE by credit quality. 30.06.25 31.12.24 China $million Hong Kong $million Total $million China $million Hong Kong $million Total $million Loans to customers 312 1,567 1,879 324 1,598 1,922 Off balance sheet - 26 26 1 40 41 Total 312 1,593 1,905 325 1,638 1,963 Loans to customers - By Credit quality Gross Strong - - - - 12 12 Satisfactory 148 323 471 172 338 510 Higher risk 33 - 33 12 42 54 Credit impaired (stage 3) 131 1,244 1,375 140 1,206 1,346 Total 312 1,567 1,879 324 1,598 1,922 Loans to customers - ECL Strong - - - - - - Satisfactory - (60) (60) (2) (73) (75) Higher risk - - - - (1) (1) Credit impaired (stage 3) (64) (1,155) (1,219) (63) (1,111) (1,174) Total (64) (1,215) (1,279) (65) (1,185) (1,250) - page 32 - Debt securities and other eligible bills (reviewed) This section provides further detail on gross debt securities and treasury bills. The credit quality descriptions in the table below align to those used for CIB and Central and other items, as described below. Debt securities held that have a short-term external rating are reported against the long-term rating of the issuer. For securities that are unrated, the Group applies an internal credit rating, as described under the 'Credit rating and measurement' section on page 201 of the 2024 Annual Report. Total gross debt securities and other eligible bills increased by $14 billion to $157.6 billion (31 December 2024: $143.6 billion) due to investments in high quality liquid assets. Stage 1 gross balance increased by $14.4 billion to $156.3 billion (31 December 2024: $141.9 billion), mainly due Hong Kong exposures. Stage 2 gross balance decreased by $0.6 billion to $1.1 billion (31 December 2024: $1.6 billion). Stage 3 gross balance increased by $0.2 billion to $0.3 billion (31 December 2024: $0.1 billion) due to increases across two sovereign exposures. Amortised cost and FVOCI 30.06.25 31.12.24 Gross $million ECL $million Net 2 $million Gross $million ECL $million Net 2 $million Stage 1 156,264 (29) 156,235 141,862 (23) 141,839 - Strong 152,430 (24) 152,406 138,353 (19) 138,334 - Satisfactory 3,834 (5) 3,829 3,509 (4) 3,505 Stage 2 1,059 (7) 1,052 1,614 (4) 1,610 - Strong 216 (2) 214 562 - 562 - Satisfactory 255 (3) 252 31 - 31 - High Risk 588 (2) 586 1,021 (4) 1,017 Stage 3 306 (6) 300 103 (2) 101 Gross balance�� 157,629 (42) 157,587 143,579 (29) 143,550 1 Stage 3 gross includes $289 million (31 December 2024: $59 million) originated credit-impaired debt securities with $6 million impairment (31 December 2024: $Nil) 2 FVOCI instruments are not presented net of ECL on the balance sheet. While the presentation is on a net basis for the table, the total net on-balance sheet amount is $157,617 million (31 December 2024: $143,562 million). Refer to the Analysis of financial instrument by stage table - page 33 - IFRS 9 ECL methodology (reviewed) Refer to page 236 of the 2024 Annual Report for the 'Approach for determining ECL', 'Application of lifetime ECL' and pages 244 to 246 for 'SICR', 'Assessment of credit-impaired financial assets' and 'Governance of PMAs and application of expert credit judgement in respect of ECL'. There have been no changes to the Group's approach in determining SICR compared to 31 December 2024. Composition of credit impairment provisions (reviewed) The table below summarises the key components of the Group's credit impairment provision balances as at 30 June 2025 and 31 December 2024. 30.06.2025 31.12.2024 Corporate & Investment Banking $ million Wealth & Retail Banking $ million Ventures $ million Central & other items $ million 4 Total $ million Corporate & Investment Banking $ million Wealth & Retail Banking $ million Ventures $ million Central & other items $ million 4 Total $ million Modelled ECL provisions (base forecast) 372 639 64 40 1,115 337 613 61 37 1,048 Impact of multiple economic scenarios 1 43 33 - 1 77 24 19 - - 43 Total ECL provisions before management judgements 415 672 64 41 1,192 361 632 61 37 1,091 Of which: Model performance post model adjustments (10) 7 - - (3) - 14 - - 14 Judgemental post model adjustments 2 - (11) - - (11) - (23) - - (23) Management overlays 3 - China commercial real estate 58 - - - 58 70 - - - 70 - Other 93 19 1 - 113 109 27 7 - 143 Total modelled provisions 566 680 65 41 1,352 540 636 68 37 1,281 Of which: Stage 1 188 412 34 30 664 133 392 30 34 589 Stage 2 353 146 20 11 530 362 151 27 1 541 Stage 3 25 122 11 - 158 45 93 11 2 151 Stage 3 non-modelled provisions 3,337 677 - 65 4,079 3,267 665 - 54 3,986 Total credit impairment provisions 3,903 1,357 65 106 5,431 3,807 1,301 68 91 5,267 1 Includes upwards judgemental post-model adjustment of $47 million (31 December 2024: $28 million) 2 Excludes $47 million (31 December 2024: $28 million) upwards judgemental post-model adjustment which is included in 'Impact of multiple economic scenarios' 3 $29 million (31 December 2024: $32 million) is in stage 1, $128 million (31 December 2024: $181 million) in stage 2 and $14 million (31 December 2024: nil) in stage 3 4 Includes ECL on cash and balances at central banks, accrued income, assets held for sale and other assets Model performance post model adjustments (PMA) As part of model monitoring and independent validation processes, where a model's performance breaches the approved monitoring thresholds or validation standards, an assessment is performed to determine whether a model performance PMA is required to temporarily remediate the model issue. The process for the determination of PMAs is set out in the 'Governance of PMAs and application of expert credit judgement in respect of ECL' section on page 246 of the 2024 Annual Report. As at 30 June 2025, model performance PMAs have been applied for five models out of the total of 110 models. In aggregate, these PMAs reduce the Group's impairment provisions by $3 million (less than 1 per cent of modelled provisions) compared with a $14 million increase as at 31 December 2024. The change from 31 December 2024 was primarily due to a new PMA in CIB to address overprediction in the commercial banking portfolio. In addition to these model performance PMAs, separate judgemental post model and management adjustments have also been applied as set out below. 30.06.25 $ million 31.12.24 $ million Model performance PMAs Corporate & Investment Banking (10) - Wealth & Retail Banking 7 14 Total model performance PMAs (3) 14 - page 34 - Key assumptions and judgements in determining ECL Incorporation of forward-looking information The evolving economic environment is a key determinant of the ability of a bank's clients to meet their obligations as they fall due. It is a fundamental principle of IFRS 9 that the provisions banks hold against potential future Credit Risk losses should depend, not just on the health of the economy today, but should also take into account potential changes to the economic environment. For example, if a bank was to anticipate a sharp slowdown in the world economy over the coming year, it should hold more provisions today to absorb the credit losses likely to occur in the near future. To capture the effect of changes to the economic environment, the PDs and LGDs used to calculate ECL incorporate forward-looking information in the form of forecasts of the values of economic variables and asset prices that are likely to have an effect on the repayment ability of the Group's clients. The 'base forecast' of the economic variables and asset prices is based on management's view of the five-year outlook, supported by projections from the Group's in-house research team and outputs from a third-party model that project specific economic variables and asset prices. The research team takes consensus views into consideration, and senior management review projections for some core country variables against consensus when forming their view of the outlook. For the period beyond five years, management utilises the in-house research view and third-party model outputs, which allow for a reversion to long-term growth rates or norms. All projections are updated on a quarterly basis. Forecast of key macroeconomic variables underlying the ECL calculation and the impact on non-linearity In the Base Forecast, management's view of the most likely outcome - the pace of growth of the world economy is expected to slow from 3.2 per cent in 2024 to 3.1 per cent in 2025. This compares to the average of 3.7 per cent growth for the 10 years prior to COVID-19 (between 2010 and 2019). For many economies 2025 is a year of two halves as tariff front-running now gives way to implementation. Front-loaded exports to the US ahead of higher tariffs supported economic activity in H1 2025, leading to a record Q1 2025 US trade deficit and stronger than expected growth in China. H2 2025 is likely to see weaker economic momentum in both economies, as well as elevated recession risks in Europe. Asia is expected to remain as the outperformer this year. The global economy faces continued challenges due to ongoing trade policy instability. US tariffs remain fluid as tariff negotiations continue, elevating the uncertainty over the outlook for the rest of the year. Geopolitical tensions and sovereign debt pressures also continue to pose significant risks. Whilst the quarterly Base Forecasts inform the Group's strategic plan, one key requirement of IFRS 9 is that the assessment of provisions should consider multiple future economic environments. For example, the global economy may grow more quickly or more slowly than the Base Forecast, and these variations would have different implications for the provisions that the Group should hold today. As the negative impact of an economic downturn on credit losses tends to be greater than the positive impact of an economic upturn, if the Group sets provisions only on the ECL under the Base Forecast it might maintain a level of provisions that does not appropriately capture the range of potential outcomes. To address the inherent uncertainty in economic forecast, and the property of skewness (or non-linearity), IFRS 9 requires reported ECL to be a probability-weighted ECL, calculated over a range of possible outcomes. To assess the range of possible outcomes the Group simulates a set of 50 scenarios around the Base Forecast, calculates the ECL under each of them and assigns an equal weight of 2 per cent to each scenario outcome. These scenarios are generated by a Monte Carlo simulation, which addresses the challenges of crafting many realistic alternative scenarios in the many countries in which the Group operates by means of a model, which produces these alternative scenarios whilst considering the degree of historical uncertainty (or volatility) observed from Q1 1990 to Q1 2025 around economic outcomes, the trends in each macroeconomic variable modelled and the correlation in the unexplained movements around these trends. This naturally means that each of the 50 scenarios do not have a specific narrative, although collectively they explore a range of hypothetical alternative outcomes for the global economy, including scenarios that turn out better than expected and scenarios that amplify anticipated stresses. Further details on the impact of mutiple economic scenarios (including any PMAs) are set out below. The GDP graphs below illustrate the shape of the Base Forecast for key footprint markets in relation to prior periods' actuals. The long-term growth rates are based on the pace of economic expansion expected for 2030. The tables below provide a summary of the Group's Base Forecast for these markets. The peak/trough amounts show the highest and lowest points within the Base Forecast. - page 35 - In 2025, China's GDP growth is projected to moderate slightly to 4.8 per cent from 5.0 per cent in 2024, primarily due to persistent challenges in the property sector and the anticipated impact of higher tariffs on export momentum. Singapore's growth is expected to slow more significantly, reaching 1 per cent in 2025, down from 4.4 per cent last year, with weaker global demand and trade uncertainty contributing to the slowdown. South Korea and Hong Kong are also expected to experience limited growth in 2025 due to the uncertain global environment, with projections of 0.8 per cent and 2.2 per cent respectively. India's growth is anticipated to record 6.5 percent in 2025, up from 6.2 per cent in 2024, driven by consumption, particularly in rural areas, supported by lower inflation and potentially higher crop yields. Long-term growth = GDP growth expected for 2030 30.06.25 China Hong Kong GDP growth (YoY%) Unemployment % 3-month interest rates % House prices 5 (YoY %) GDP growth (YoY %) Unemployment % 3-month interest rates % House prices (YoY %) Base forecast 1 2025 4.8 3.5 1.5 (4.9) 2.2 3.2 2.9 1.0 2026 4.3 3.4 1.3 (3.2) 2.5 3.3 3.6 7.6 2027 4.1 3.3 1.2 (0.9) 2.5 3.3 3.9 5.0 2028 3.5 3.3 1.2 0.9 2.2 3.3 4.1 3.4 2029 3.9 3.3 1.2 2.0 1.8 3.3 4.1 2.4 5-year average 2 3.9 3.4 1.3 (0.4) 2.2 3.3 3.8 4.4 Quarterly peak 6.4 3.5 1.4 2.6 2.6 3.3 4.1 8.0 Quarterly trough 2.1 3.3 1.2 (4.7) 1.5 3.2 2.4 2.2 Monte Carlo Low 3 (6.3) 2.9 (0.9) (9.9) (3.7) 1.6 (0.5) (20.5) High 4 16.3 3.7 3.4 12.2 8.2 5.9 8.8 33.3 30.06.25 Singapore Korea GDP growth (YoY%) Unemployment 6 % 3-month interest rates % House prices (YoY%) GDP growth (YoY%) Unemployment % 3-month interest rates % House prices (YoY %) Base forecast 1 2025 1.0 2.9 2.1 2.5 0.8 2.8 2.6 0.4 2026 1.9 3.0 2.0 2.3 2.3 2.9 2.2 2.2 2027 2.5 2.9 2.6 2.6 2.0 2.9 2.2 2.3 2028 2.7 2.9 3.1 2.7 2.0 2.9 2.2 2.1 2029 2.8 2.9 3.1 2.7 2.2 3.0 2.2 2.0 5-year average 2 2.2 2.9 2.7 2.6 2.1 2.9 2.2 2.0 Quarterly peak 2.9 3.1 3.1 2.8 2.5 3.0 2.4 2.4 Quarterly trough (0.7) 2.9 1.9 1.8 0.9 2.8 2.2 0.5 Monte Carlo Low 3 (4.3) 1.5 (0.0) (18.6) (3.2) 1.5 (1.0) (6.5) High 4 8.5 4.5 6.2 22.9 7.1 5.1 6.0 9.3 30.06.25 India Brent Crude $ pb GDP growth (YoY%) Unemployment 7 % 3-month interest rates % House prices (YoY%) Base forecast 1 2025 6.5 NA 5.6 5.8 68.9 2026 6.5 NA 5.7 6.4 67.5 2027 6.5 NA 5.7 6.4 69.5 2028 6.4 NA 5.7 6.3 71.6 2029 6.3 NA 5.7 6.2 73.1 5-year average 2 6.4 NA 5.7 6.3 70.4 Quarterly peak 7.1 NA 5.8 7.3 74.5 Quarterly trough 6.0 NA 5.5 5.2 66.1 Monte Carlo Low 3 2.9 N/A 1.1 1.1 29.0 High 4 9.8 N/A 10.2 12.9 136.3 - page 36 - 31.12.24 China Hong Kong GDP growth (YoY%) Unemployment % 3-month interest rates % House prices 5 (YoY%) GDP growth (YoY%) Unemployment % 3-month interest rates % House prices (YoY%) 5-year average 2 4.1 3.3 1.7 (1.3) 2.2 3.1 2.4 3.8 Quarterly peak 5.3 3.5 1.9 2.3 3.5 3.2 2.9 6.8 Quarterly trough 3.2 3.1 1.6 (5.6) 1.5 3.0 2.1 (2.6) Monte Carlo Low 3 (1.0) 2.8 0.6 (10.1) (1.8) 1.8 0.3 (13.1) High 4 9.3 3.7 3.0 7.8 5.8 5.1 5.3 22.2 31.12.24 Singapore Korea GDP growth (YoY%) Unemployment 6 % 3-month interest rates % House prices (YoY%) GDP growth (YoY%) Unemployment % 3-month interest rates % House prices (YoY%) 5-year average 2 2.3 2.7 2.0 2.4 2.0 2.8 2.9 2.8 Quarterly peak 3.4 2.8 2.4 3.2 2.2 2.9 3.2 4.8 Quarterly trough 0.6 2.7 1.6 (0.4) 1.5 2.8 2.9 1.9 Monte Carlo Low 3 (2.7) 2.0 0.3 (10.5) (1.3) 2.2 0.8 (4.3) High 4 7.0 3.6 3.9 17.5 5.2 3.5 5.7 9.8 31.12.24 India Brent crude $ pb GDP growth (YoY%) Unemployment % 3-month interest rates % House prices (YoY%) 5-year average 2 6.6 NA 6.0 6.4 76.2 Quarterly peak 7.1 NA 6.2 7.3 77.8 Quarterly trough 5.9 NA 6.0 6.0 74.8 Monte Carlo Low 3 3.2 NA 1.9 (0.1) 44.5 High 4 10.0 NA 10.3 12.6 107.8 1 Data presented are those used in the calculation of ECL and presented as average growth for the year. These may differ slightly to forecasts presented elsewhere in this Half-Year Report as they are finalised before the period end. The annual averages are calendar year where 2025 = Q1 2025 to Q4 2025. 2 5 year averages reported for 30.06.25 cover 20 quarters from Q3 2025 to Q2 2030. They cover Q1 2025 to Q4 2029 for the numbers reported for the 2024 Annual report 3 Represents the 10th percentile in the range of economic scenarios used to determine non-linearity 4 Represents the 90th percentile in the range of economic scenarios used to determine non-linearity 5 A judgemental management adjustment is held in respect of the China commercial real estate sector, as discussed below 6 Singapore unemployment rate covers the resident unemployment rate, which refers to citizens and permanent residents 7 India unemployment is not available due to insufficient data Impact of multiple economic scenarios The final probability weighted ECL reported by the Group is a simple average of the ECL for each of the 50 scenarios simulated using a Monte Carlo model. The Monte Carlo approach has the advantage that it generates many alternative scenarios that cover our global footprint. The range of scenarios is restricted through the use of ceilings and floors applied to the underlying macroeconomic variables, and these were redeveloped in the first half of 2025 to capture a broader range of outcomes. Given continuing heightened levels of tariff and geopolitical uncertainty, a $47 million (31 December 2024: $28 million) non-linearity PMA has been applied, $24 million (31 December 2024: $13 million) for CIB and Central and other items, and $23 million (31 December 2024: $15 million) for WRB. The total amount of non-linearity has been estimated by assigning probability weights of 55 per cent, 27 per cent and 18 per cent respectively to the Base Forecast, 'Moderate Global Trade and Geopolitical Tensions', and 'Bank Capital Stress Test' scenarios which are presented below and comparing this to the unweighted Base Forecast ECL. At 31 December 2024, probability weights of 68 per cent, 22 per cent and 10 per cent respectively to the Base Forecast, 'Higher for Longer Commodities and Rates', and 'Global Trade and Geopolitical Tensions' scenarios as disclosed in the 2024 Annual Report. - page 37 - The non-linearity PMA represents the difference between the probability weighted ECL calculated using the three scenarios and the probability weighted ECL calculated by the Monte Carlo model. The total amount of non-linearity including the PMA is $77 million (31 December 2024: $43 million). The CIB and Central and other items portfolio accounted for $44 million (31 December 2024: $24 million) of the calculated non-linearity, with the remaining $33 million (31 December 2024: $19 million) attributable to WRB portfolios. The impact of multiple economic scenarios on total modelled ECL is set out in the table below, together with the management overlay and other judgemental adjustments. Base forecast $million Multiple economic scenarios 1 $million Management overlays and other judgemental adjustments $million Total modelled ECL 2 $million Total expected credit loss at 30 June 2025 1,115 77 160 1,352 Total expected credit loss at 31 December 2024 1,048 43 190 1,281 1 Includes an upwards judgemental PMA of $47 million (31 December 2024: $28 million) 2 Total modelled ECL comprises stage 1 and stage 2 balances of $1,194 million (31 December 2024: $1,130 million) and $158 million (31 December 2024: $151 million) of modelled ECL on stage 3 loans The average ECL under multiple scenarios is 7 per cent (31 December 2024: 4 per cent) higher than the ECL calculated using only the most likely scenario (the Base Forecast). Portfolios that are more sensitive to non-linearity include those with greater leverage and/or a longer tenor, such as Project and Shipping Finance portfolios. Other portfolios display minimal non-linearity owing to limited responsiveness to macroeconomic impacts for structural reasons, such as significant collateralisation as with the WRB mortgage portfolios. Judgemental management adjustments As at 30 June 2025, the Group held judgemental adjustments for ECL as set out in the table below. All of the judgemental adjustments have been determined after taking account of the model performance PMAs reported on below. They are reassessed quarterly and are reviewed and approved by the IFRS 9 Impairment Committee (IIC) and will be released when no longer relevant. 30 June 2025 Corporate & Investment Banking $million Wealth & Retail Banking Ventures $million Central & other items $million Total $million Mortgages $million Credit Cards $million Other $million Total $million Judgemental post model adjustments 23 (1) 14 (1) 12 - 1 36 Judgemental management overlays: - China CRE 58 - - - - - - 58 - Other 93 - 1 18 19 1 - 113 Total judgemental adjustments 174 (1) 15 17 31 1 1 207 Judgemental adjustments by stage: Stage 1 36 - 9 8 17 1 1 55 Stage 2 138 (1) 6 9 14 - - 152 Stage 3 - - - - - - - - 31 December 2024 Judgemental post model adjustments 13 - 9 (17) (8) - - 5 Judgemental management overlays: - China CRE 70 - - - - - - 70 - Other 109 - 5 22 27 7 - 143 Total judgemental adjustments 192 - 14 5 19 7 - 218 Judgemental adjustments by stage: Stage 1 27 - 10 (11) (1) 4 - 30 Stage 2 165 - 5 25 30 3 - 198 Stage 3 - - (1) (9) (10) - - (10) Judgemental PMAs As at 30 June 2025, judgemental PMAs have been applied that increase ECL by a net $36 million (31 December 2024: $5 million increase). $47 million (31 December 2024: $28 million) of the increase in ECL related to multiple economic scenarios (see 'Impact of multiple economic scenarios' section). This was partly offset by a reduction of ECL of $11 million for certain WRB models, primarily to adjust for temporary factors impacting modelled outputs. These will be released when these factors normalise. - page 38 - Judgemental management overlays China CRE The real estate market in China has been in a downturn since late 2021 with continued over supply, developer liquidity issues and a lack of foreign investment. The government has introduced a number of monetary and fiscal stimuli during the period, including reducing down payment ratios, interest rates, mortgage rates, and taxes as well as new policies permitting local governments to purchase homes as affordable housing. However, demand still remains muted with some small improvements in prices and volumes only visible in first tier cities. Consumer confidence and continued support from the government are key to reversing the declining trend and ensuring further stabilisation in 2025. The Group's loans and advances to China CRE clients was $1.9 billion at 30 June 2025 (31 December 2024: $1.9 billion). Heightened risk management continues to be carried out, with a focus on managing upcoming maturities through refinancing and/or repayment. No new financing transactions were entered into during the period. Clients with exposure maturing within the next 12 months have been placed on purely precautionary or non-purely precautionary early alert, where appropriate, for closer monitoring. Given the evolving nature of the risks in the China CRE sector, a management overlay of $58 million (31 December 2024: $70 million) has been taken by estimating the impact of further deterioration to exposures in this sector. The decrease from 31 December 2024 was primarily driven by repayments and utilisation due to movement to stage 3. Other In CIB, additional overlays of $93 million (31 December 2024: $109 million) have been taken, $35 million (31 December 2024: $58 million) of which is in Hong Kong, with the remainder relating to Bangladesh and an immaterial amount for climate risks. The overlay in Hong Kong reflects subdued economic activity and increasing commercial property vacancy rates, which contributes to an uncertain outlook that are not yet fully reflected in the credit grades and modelled ECL. The risk of further impairment remains as a result of subdued economic activity in the property sector and the related liquidity constraints faced by counterparties as a result. The overlays reduction since 31 December 2024 was due to risks being partially manifested in the portfolio modelled ECL. The overlay in Bangladesh reflects the political situation that has contributed to an increasing level of uncertainty in the macroeconomic outlook. The overlays for Hong Kong and Bangladesh have been determined by estimating the impact of a deterioration to certain exposures in these countries. In WRB, overlays of $19 million (31 December 2024: $27 million) includes $14 million (31 December 2024: $21 million) in Korea to cover the risks relating to the failure of two e-commerce payment platforms in 2024, and an immaterial adjustment for climate risks and other items. The overlays reduction since 31 December 2024 was due to risks being partially manifested in the portfolio modelled ECL, and overlay releases for bankruptcy trends in certain markets previously held at 31 December 2024 are now covered by a separate judgemental PMA. Further details on the adjustment for Climate Risk are set out in Note 1 of the 'Notes to the financial statements' section in the 2024 Annual Report. Stage 3 assets Credit-impaired assets managed by Stressed Asset Group (SAG) incorporate forward-looking economic assumptions in respect of the recovery outcomes identified and are assigned individual probability weightings per IFRS 9. These assumptions are not based on a Monte Carlo simulation but are informed by the Base Forecast. Sensitivity of ECL calculation to macroeconomic variables The ECL calculation relies on multiple variables and is inherently non-linear and portfolio-dependent, which implies that no single analysis can fully demonstrate the sensitivity of the ECL to changes in the macroeconomic variables. The Group has conducted a series of analyses with the aim of identifying the macroeconomic variables which might have the greatest impact on the overall ECL. These encompassed single variable and multi-variable exercises, using simple up/down variation and extracts from actual calculation data, as well as bespoke scenario design assessments. The primary conclusion of these exercises is that no individual macroeconomic variable is materially influential. The Group believes this is plausible as the number of variables used in the ECL calculation is large. This does not mean that macroeconomic variables are uninfluential; rather, that the Group believes that consideration of macroeconomics should involve whole scenarios, as this aligns with the multi-variable nature of the calculation. - page 39 - The Group faces downside risks in the operating environment related to the uncertainties surrounding the macroeconomic outlook. To explore this, a sensitivity analysis of ECL was undertaken to explore the effect of slower economic recoveries across the Group's footprint markets. Two downside scenarios were considered in particular to explore the current uncertainties over commodity prices. The 'Moderate Global Trade and Geopolitical Tensions' (Moderate GTGT) scenario is a moderate downside scenario characterised by an escalating trade war between the US and China and other economies. The second Bank of England's 'Bank Capital Stress Test' (BCST) scenario is characterized by a severe but plausible global aggregate supply shock leading to deep recessions globally. It also features higher commodity prices, inflation and interest rates. Baseline Moderate GTGT BCST Five year average Peak/Trough Five year average Peak/Trough Five year average Peak/Trough China GDP 3.9 6.4/2.1 2.9 4.4/0.2 2.7 4.2/(1.7) China unemployment 3.4 3.5/3.3 4.1 4.4/3.6 4.3 5.0/3.7 China property prices (0.4) 2.6/(4.7) 0.4 6.5/(11.4) (3.8) 11.1/(11.4) Hong Kong GDP 2.2 2.6/1.5 0.6 1.5/(3.2) 0.1 2.7/(6.6) Hong Kong unemployment 3.3 3.3/3.2 4.8 5.3/3.6 6.1 7.6/3.7 Hong Kong property prices 4.4 8.0/2.2 1.7 13.4/(12.8) (3.2) 7.9/(10.5) US GDP 1.9 2.2/1.5 1.0 2.0/(0.3) 0.2 1.4/(3.5) Singapore GDP 2.2 2.9/(0.7) 0.9 2.8/(2.9) 0.6 3.8/(6.7) India GDP 6.4 7.1/6.0 5.5 6.6/3.8 4.8 6.3/0.8 Crude oil 70.4 74.5/66.1 62.5 70.1/55.4 110.4 146.2/74.5 Period covered from Q3 2025 to Q2 2030. Base (GDP, YoY%) Moderate GTGT (GDP, YoY%) Difference from Base 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 China 3.5 5.4 3.2 3.9 3.8 1.8 2.4 2.7 3.9 3.8 (1.6) (3.0) (0.6) (0.0) 0.0 Hong Kong 2.3 2.5 2.4 2.0 1.6 (2.2) 0.7 1.5 1.5 1.4 (4.5) (1.9) (0.9) (0.5) (0.2) US 1.7 2.1 1.8 1.9 1.8 0.6 (0.1) 1.1 1.7 1.9 (1.1) (2.2) (0.8) (0.1) 0.1 Singapore 0.4 2.4 2.6 2.7 2.8 (2.2) (0.4) 1.9 2.6 2.4 (2.6) (2.8) (0.7) (0.1) (0.4) India 6.4 6.6 6.5 6.4 6.3 5.1 4.4 5.8 6.1 6.2 (1.3) (2.2) (0.7) (0.3) (0.1) Each year is from Q3 to Q2. For example 2025 is from Q3 2025 to Q2 2026. Base (GDP, YoY%) BCST (GDP, YoY%) Difference from Base 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 2025 2026 2027 2028 2029 China 3.5 5.4 3.2 3.9 3.8 0.6 0.6 4.0 4.1 3.9 (2.8) (4.7) 0.8 0.2 0.1 Hong Kong 2.3 2.5 2.4 2.0 1.6 (3.2) (3.3) 2.5 2.4 2.4 (5.5) (5.9) 0.0 0.4 0.8 US 1.7 2.1 1.8 1.9 1.8 (1.0) (1.9) 1.1 1.3 1.3 (2.8) (4.0) (0.7) (0.5) (0.6) Singapore 0.4 2.4 2.6 2.7 2.8 (4.7) (3.1) 3.6 3.6 3.6 (5.1) (5.5) 1.0 0.8 0.7 India 6.4 6.6 6.5 6.4 6.3 3.4 2.1 6.1 6.2 6.2 (3.0) (4.5) (0.4) (0.2) (0.1) Each year is from Q3 to Q2. For example 2025 is from Q3 2025 to Q2 2026. The total modelled stage 1 and 2 ECL provisions (including both on and off-balance sheet instruments) would be approximately $107 million higher under the 'Moderate GTGT' scenario, and $268 million higher under the 'BCST' scenario than the baseline ECL provisions (which excluded the impact of multiple economic scenarios and judgemental management adjustments which may already capture some of the risks in these scenarios). Stage 2 exposures as a proportion of stage 1 and 2 exposures would increase from 2.9 per cent in the base case to 3.3 per cent and 3.8 per cent respectively under the 'Moderate GTGT' and 'BCST' scenarios. This includes the impact of exposures transferring to stage 2 from stage 1 but does not consider an increase in stage 3 defaults. Under both scenarios, the majority of the increase in ECL in CIB came from the main CRE, Project Finance and Corporate portfolios. For the main corporate portfolios, ECL would increase by $29 million and $14 million in the 'Moderate GTGT' and 'BCST' scenarios respectively, and the proportion of stage 2 exposures would increase from 4.6 per cent in the base case to 5.1 per cent and 5.7 per cent respectively. Although the 'BCST' is a more severe scenario, the impact on the main corporate portfolio is moderated compared to the 'Moderate GTGT' scenario as the scenario includes an increase in commodity prices, which some of the models view positively. - page 40 - For WRB, most of the increase in ECL came from the unsecured retail portfolios, particularly from the credit cards portfolios in Hong Kong and Singapore. Under the 'Moderate GTGT' and 'BCST' scenarios, credit card ECL would increase by $13 million and $47 million respectively and the proportion of stage 2 credit card exposures would increase from 2.5 per cent in the base scenario to 3.1 per cent and 4.3 per cent under 'Moderate GTGT' and 'BCST' respectively. Additionally, under the 'BCST' scenario, Korea personal loans, Private Bank, and retail mortgages ECL would increase by $11 million, $86 million, and 27 million respectively. The proportion of stage 2 mortgages would increase from 1.2 per cent in the base case to 1.4 per cent and 2.4 per cent respectively, with the Hong Kong, Singapore, and Korea portfolios most impacted. There was no material change in modelled stage 3 provisions as these primarily relate to unsecured WRB exposures for which the LGD is not sensitive to changes in the macroeconomic forecasts. There is also no material change for non-modelled stage 3 exposures as these are more sensitive to client-specific factors than to alternative macroeconomic scenarios. The actual outcome of any scenario may be materially different due to, among other factors, the effect of management actions to mitigate potential increases in risk and changes in the underlying portfolio. Gross as reported 1 $million ECL as reported 2 $million ECL Base case $million ECL Moderate GTGT $million ECL BCST $million Stage 1 modelled Corporate & Investment Banking 389,444 151 136 152 155 Wealth & Retail Banking 186,055 395 379 388 428 Ventures 11,179 33 33 33 33 Central & other items 174,458 30 29 30 32 Total excluding management judgements 761,136 609 577 603 648 Stage 2 modelled Corporate & Investment Banking 17,297 215 187 249 291 Wealth & Retail Banking 2,224 132 115 134 208 Ventures 54 20 20 20 20 Central & other items 1,081 8 8 8 8 Total excluding management judgements 20,656 375 330 411 527 Total Stage 1 and 2 modelled Corporate & Investment Banking 406,741 366 323 401 446 Wealth & Retail Banking 188,279 527 494 522 636 Ventures 11,233 53 53 53 53 Central & other items 175,539 38 37 38 40 Total excluding management judgements 781,792 984 907 1,014 1,175 Stage 3 exposures excluding management judgements 6,952 4,179 Other financial assets 3 128,832 61 ECL from management judgements 207 Total financial assets reported at 30 June 2025 917,576 5,431 1 Gross balances includes both on- and off-balance sheet instruments; allocation between stage 1 and 2 will differ by scenario 2 Includes ECL for both on- and off-balance sheet instruments 3 Includes cash and balances at central banks, accrued income, other financial assets, and assets held for sale - page 41 - Traded Risk Market Risk (reviewed) Market Risk is the potential for fair value loss due to adverse moves in financial markets. The Group's exposure to Market Risk arises predominantly from the following sources: �� Trading book: - The Group provides clients with access to markets, facilitation of which entails the Group taking moderate Market Risk positions. All trading teams support client activity. There are no proprietary trading teams. Hence, income earned from Market Risk-related activities is primarily driven by the volume of client activity. �� Non-trading book: - Treasury is required to hold a liquid assets buffer, much of which is held in high-quality marketable debt securities. - The Group underwrites and sells down loans, and invests in select investment grade debt securities with no trading intent. - The Group has capital invested and related income streams denominated in currencies other than US dollars. To the extent that these income streams are not hedged, the Group is subject to Structural Foreign Exchange Risk, which is reflected in reserves. A summary of our current policies and practices regarding Market Risk management is provided in the 'Principal Risks' section of the 2024 Annual Report (page 201). The primary categories of Market Risk for the Group are: �� Interest Rate Risk: arising from changes in yield curves and implied volatilities. �� Foreign Exchange Risk: arising from changes in currency exchange rates and implied volatilities. �� Commodity Risk: arising from changes in commodity prices and implied volatilities. �� Credit Spread Risk: arising from changes in the price of debt instruments and credit-linked derivatives and driven by factors other than the level of risk-free interest rates. �� Equity Risk: arising from changes in the prices of equities and implied volatilities. Market Risk movements Value at Risk (VaR) allows the Group to manage Market Risk across the trading book and most of the fair valued non-trading books. There have been a number of market events in H1 2025 that led to increased market volatility. Q1 2025 was dominated by fears over US tariffs, with the S&P 500 exhibiting its worst underperformance versus emerging markets since 2017. US yields fell over the quarter on recession concerns, while yields in other major bond markets increased, notably Germany on unprecedented fiscal stimulus, driven by security fears associated with US isolationism. This uncertainty drove gold prices higher and risk assets lower, especially US high-yield credit. Despite recession concerns, oil prices remained supported by tension in the Middle East. In Q2 2025, market volatility increased driven by the imposition of tariffs on Liberation Day and then subsequent suspensions and re-impositions. Additional volatility was driven by military hostilities in India-Pakistan and within the Middle East, and subsequent ceasefires. The market consequences included the worst H1 2025 performance of the US dollar against foreign exchanges since 2002, while the S&P 500 rose in Q2 2025, closing near its all-time high. The price of crude oil, having spiked in June 2025 on fears over potential closure of the Strait of Hormuz, closed lower in Q2 2025 on global trade uncertainty; in contrast, gold continued to rise over the quarter. Trading VaR The average level of trading VaR in H1 2025 was $27.9 million, 35 per cent higher than H2 2024 ($20.7 million) and 30 per cent higher than H1 2024 ($21.5 million). The increase in trading average VaR was driven by an increase in market volatility combined with a VaR model enhancement to make the model more responsive to such an upturn in market volatility. - page 42 - Daily Value at Risk (VaR at 97.5%, one day) (reviewed) Trading 1 6 months ended 30.06.25 6 months ended 31.12.24 6 months ended 30.06.24 Average $million High $million Low $million Half Year $million Average $million High $million Low $million Half Year $million Average $million High $million Low $million Half Year $million Interest Rate Risk 13.9 18.3 9.8 13.0 12.1 17.2 7.0 12.0 13.2 22.0 9.1 10.6 Credit Spread Risk 8.9 13.0 5.4 12.2 6.1 7.4 5.1 5.4 7.2 9.6 4.8 6.0 Foreign Exchange Risk 7.5 12.3 4.9 6.5 9.7 15.0 5.0 7.4 8.9 14.5 5.2 9.1 Commodity Risk 13.0 21.7 2.9 5.1 4.5 7.6 2.7 4.3 5.2 10.0 2.4 5.7 Equity Risk - - - - - - - - - - - - Diversification effect 2 (15.4) NA NA (13.8) (11.7) NA NA (8.3) (13.0) NA NA (15.9) Total 2 27.9 34.9 18.9 23.0 20.7 30.3 13.2 20.8 21.5 33.1 13.0 15.5 1 The trading book for Market Risk is defined in the 'Trading Book Capital Requirements Regulation (CRR)' part of the PRA Handbook which transposes the requirements of CRR Part 3 Title I Chapter 3 as onshored in the UK. This restricts the positions permitted in the trading book. 2 The total VaR is non-additive across risk types due to diversification effects, which is measured as the difference between the sum of the VaR by individual risk type or business and the combined total VaR. As the maximum and minimum occur on different days for different risk types or businesses, it is not meaningful to calculate a portfolio diversification benefit for these measures Risks not in VaR In H1 2025, the main market risks not reflected in VaR were: �� Basis risks for which the historical market price data is limited and is therefore proxied, giving rise to potential proxy basis risk that is not captured in VaR �� Potential depeg risk from currencies currently pegged or managed, where the historical one-year VaR observation period may not reflect the possibility of a change in the currency regime or a sudden depegging Additional capital is set aside to cover such 'risks not in VaR'. Backtesting In H1 2025, there were no regulatory backtesting negative exceptions at Group level. In the one-year period to 30 June 2025, there have been no Group-level backtesting exceptions. An enhancement to the VaR model was implemented from January 2025 to increase the model's responsiveness to abrupt upturns in market volatility. Counterparty Credit Risk Counterparty Credit Risk is the potential for loss in the event of the default of a derivative counterparty, after taking into account the value of eligible collaterals and risk mitigation techniques. The Group's counterparty credit exposures are included in the Credit Risk section. Derivative financial instruments Credit Risk mitigation The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of the positive and negative mark-to-market values of applicable derivative transactions. In addition, the Group enters into credit support annexes (CSAs) with counterparties where collateral is deemed a necessary or desirable mitigant to the exposure. Cash collateral includes collateral called under a variation margin process from counterparties if total uncollateralised mark-to-market exposure exceeds the threshold and minimum transfer amount specified in the CSA. With certain counterparties, the CSA is reciprocal and requires us to post collateral if the overall mark-to- market values of positions are in the counterparty's favour and exceed an agreed threshold. Liquidity and Funding Risk Liquidity and Funding Risk is the risk that the Group may not have sufficient stable or diverse sources of funding to meet its obligations as they fall due. The Group's Liquidity and Funding Risk framework requires each country to ensure that it operates within predefined liquidity limits and remains in compliance with Group liquidity policies and practices, as well as local regulatory requirements. The Group achieves this through a combination of setting Risk Appetite and associated limits, policy formation, risk measurement and monitoring, prudential and internal stress testing, governance and review. - page 43 - Throughout 2025, the Group retained a robust liquidity position across key metrics. The Group continues to focus on improving the quality and diversification of its funding mix and remains committed to supporting its clients. Liquidity and Funding Risk metrics The Group continually monitors key liquidity metrics, both on a country basis and consolidated across the Group. The following liquidity and funding Board Risk Appetite metrics define the maximum amount and type of risk that the Group is willing to assume in pursuit of its strategy: liquidity coverage ratio (LCR), internal liquidity stress, recovery capacity and net stable funding ratio (NSFR). In addition to the Board Risk Appetite, there are further limits that apply at Group and country level such as external wholesale borrowing (WBE) and cross-currency limits. Liquidity coverage ratio (LCR) The LCR is a regulatory requirement set to ensure the Group has sufficient unencumbered high-quality liquid assets to meet its liquidity needs in a 30-calendar-day liquidity stress scenario. The Group monitors and reports its liquidity positions under the Liquidity Coverage Ratio per PRA rulebook and has maintained its LCR above the prudential requirement. The Group maintained robust liquidity ratios throughout 2025. At the reporting date, the Group LCR was 146 per cent (31 December 2024: 138 per cent), with a surplus to both Board-approved Risk Appetite and regulatory requirements. Adequate liquidity was held across our footprint to meet all local prudential LCR requirements where applicable. The Liquidity buffer reported is after deductions made to reflect the impact of limitations in the transferability of entity liquidity around the Group. This resulted in a deduction of $55 billion to the liquidity buffer (LCR HQLA) as at 30 June 2025. 30.06.25 $million 31.12.24 $million Liquidity buffer 187,496 170,306 Total net cash outflows 128,151 123,226 Liquidity coverage ratio 146% 138% Stressed coverage The Group intends to maintain a prudent and sustainable funding and liquidity position, in all countries and currencies, such that it can withstand a severe but plausible liquidity stress. Our approach to managing liquidity and funding is reflected in the Board-level Risk Appetite Statement which includes the following: "The Group should have sufficient stable and diverse sources of funding to meet its contractual and contingent obligations as they fall due." The Group's Internal Liquidity Adequacy Assessment Process ('ILAAP') stress testing framework covers the following stress scenarios: �� Standard Chartered-specific - captures the liquidity impact from an idiosyncratic event affecting Standard Chartered only with the rest of the market assumed to be operating normally. �� Market-wide - captures the liquidity impact from a market-wide crisis affecting all participants in a country, region or globally. �� Combined - assumes both Standard Chartered-specific and market-wide events affect the Group simultaneously and hence is the most severe scenario. All scenarios include, but are not limited to, modelled outflows for retail and wholesale funding, off-balance sheet funding risk, cross-currency funding risk, intraday risk, franchise risk and risks associated with a deterioration of a firm's credit rating. Concentration risk approach captures single name and industry concentration. Internal stress testing results show that, as at 30 June 2025, Group and all countries were able to survive for a period of time with positive surpluses as defined under each scenario. The results take into account currency convertibility and portability constraints while calculating the liquidity surplus at Group level. Standard Chartered Bank's credit ratings as at 30 June 2025 were A+ with stable outlook (Fitch), A+ with stable outlook (S&P) and A1 with positive outlook (Moody's). As of 30 June 2025, the estimated contractual outflow of a three-notch long-term ratings downgrade is $0.8 billion. - page 44 - Advances-to-deposits ratio This is defined as the ratio of total loans and advances to customers relative to total customer deposits. An advances-to-deposits ratio below 100 per cent demonstrates that customer deposits exceed customer loans as a result of the emphasis placed on generating a high level of funding from customers. The Group's advances-to-deposits ratio has improved by 2.3 per cent as customer deposit growth exceeds growth in customer loans and advances. Deposits from customers as at 30 June 2025 are $542,348 million (31 December 2024: $486,261 million). 30.06.25 $million 31.12.24 $million Total loans and advances to customers 1,2 276,422 259,269 Total customer accounts 3 542,348 486,261 Advances-to-deposits ratio 51.0% 53.3% 1 Excludes reverse repurchase agreement and other similar secured lending of $4,189 million (31 December 2024:$9,660 million) and includes loans and advances to customers held at fair value through profit and loss of $8,119 million (31 December 2024: $7,084 million) 2 Loans and advances to customers for the purpose of the advances-to-deposits ratio excludes $14,239 million (31 December 2024: $19,187 million) of approved balances held with central banks, confirmed as repayable at the point of stress 3 Includes customer accounts held at fair value through profit or loss of $24,958 million (31 December 2024: $21,772 million) Net stable funding ratio (NSFR) The NSFR is a PRA regulatory requirement that stipulates institutions to maintain a stable funding profile in relation to an assumed duration of their assets and off-balance sheet activities over a one-year horizon. It is the ratio between the amount of available stable funding (ASF) and the amount of required stable funding (RSF). ASF factors are applied to balance sheet liabilities and capital, based on their perceived stability and the amount of stable funding they provide. Likewise, RSF factors are applied to assets and off-balance sheet exposures according to the amount of stable funding they require. The regulatory requirements for NSFR are to maintain a ratio of at least 100 per cent. The average ratio for the past four quarters is 137 per cent. Liquidity pool The liquidity value of the Group's LCR eligible liquidity pool at the reporting date was $187 billion. The figures in the table below account for haircuts, currency convertibility and portability constraints per PRA rules for transfer restrictions (amounting to $55 billion as at 30 June 2025), and therefore are not directly comparable with the consolidated balance sheet. A liquidity pool is held to offset stress outflows as defined in the LCR per PRA rulebook. 30.06.25 $million 31.12.24 $million Level 1 securities Cash and balances at central banks 86,388 76,094 Central banks, governments/public sector entities 89,238 74,182 Multilateral development banks and international organisations 7,191 14,386 Other 460 343 Total Level 1 securities 183,277 165,005 Level 2 A securities 3,703 4,367 Level 2 B securities 516 934 Total LCR eligible assets 187,496 170,306 Liquidity analysis of the Group's balance sheet Contractual maturity of assets and liabilities The following table presents assets and liabilities by maturity groupings based on the remaining period to the contractual maturity date as at the balance sheet date on a discounted basis. Contractual maturities do not necessarily reflect actual repayments or cashflows. Within the tables below, cash and balances with central banks, interbank placements and investment securities that are fair valued through other comprehensive income are used by the Group principally for liquidity management purposes. As at the reporting date, assets remain predominantly short-dated, with 58 per cent maturing in less than one year. - page 45 - 30.06.25 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Assets Cash and balances at central banks 69,253 - - - - - - 10,912 80,165 Derivative financial instruments 15,694 10,181 9,599 6,638 3,475 5,548 7,647 5,443 64,225 Loans and advances to banks 1,2 19,868 17,585 11,524 7,348 8,116 8,993 4,115 1,795 79,344 Loans and advances to customers 1,2 84,528 37,657 25,261 15,231 15,646 39,059 32,349 100,887 350,618 Investment securities 1 16,805 26,083 18,853 22,846 15,126 37,676 48,352 73,525 259,266 Other assets 1 20,454 46,949 1,359 416 806 39 66 10,229 80,318 Total assets 226,602 138,455 66,596 52,479 43,169 91,315 92,529 202,791 913,936 Liabilities Deposits by banks 1,3 30,337 2,304 1,404 192 1,179 4,322 2,548 2 42,288 Customer accounts 1,4 423,214 38,415 30,685 15,380 12,331 8,893 49,889 3,326 582,133 Derivative financial instruments 17,450 14,035 10,334 7,033 3,562 5,165 7,512 4,787 69,878 Senior debt 5 820 2,267 1,401 1,211 2,096 6,630 20,185 20,737 55,347 Other debt securities in issue 1 2,438 5,181 9,051 5,469 2,962 1,090 769 778 27,738 Other liabilities 16,290 42,430 2,222 849 1,960 1,859 1,636 5,858 73,104 Subordinated liabilities and other borrowed funds - 63 9 144 45 1,422 736 6,359 8,778 Total liabilities 490,549 104,695 55,106 30,278 24,135 29,381 83,275 41,847 859,266 Net liquidity gap (263,947) 33,760 11,490 22,201 19,034 61,934 9,254 160,944 54,670 31.12.24 Assets Cash and balances at central banks 55,646 - - - - - - 7,801 63,447 Derivative financial instruments 22,939 15,556 12,217 7,265 4,328 7,067 7,448 4,652 81,472 Loans and advances to banks 1,2 22,381 21,722 10,588 6,771 4,986 8,407 3,715 1,990 80,560 Loans and advances to customers 1,2 65,688 58,765 25,739 15,479 16,192 31,240 31,766 94,688 339,557 Investment securities 1 13,016 25,886 21,546 14,789 14,688 32,815 41,423 62,418 226,581 Other assets 1 12,601 32,130 1,333 381 931 71 64 10,560 58,071 Total assets 192,271 154,059 71,423 44,685 41,125 79,600 84,416 182,109 849,688 Liabilities Deposits by banks 1,3 24,293 2,345 1,621 848 571 4,342 1,939 3 35,962 Customer accounts 1,4 379,926 37,502 25,863 10,152 10,123 9,695 47,367 2,635 523,263 Derivative financial instruments 21,680 17,115 11,773 7,018 4,353 6,660 8,144 5,321 82,064 Senior debt 5 609 1,755 4,074 2,132 932 7,926 18,784 17,886 54,098 Other debt securities in issue 1 2,734 2,663 6,550 4,535 5,015 851 1,206 688 24,242 Other liabilities 12,173 43,574 3,020 1,441 155 4,494 682 2,854 68,393 Subordinated liabilities and other borrowed funds - 64 23 180 13 359 1,978 7,765 10,382 Total liabilities 441,415 105,018 52,924 26,306 21,162 34,327 80,100 37,152 798,404 Net liquidity gap (249,144) 49,041 18,499 18,379 19,963 45,273 4,316 144,957 51,284 1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value through profit or loss, see Note 13 Financial instruments 2 Loans and advances include reverse repurchase agreements and other similar secured lending of $98.8 billion (31 December 2024: $98.8 billion) 3 Deposits by banks include repurchase agreements and other similar secured borrowing of $9.4 billion (31 December 2024: $8.7 billion) 4 Customer accounts include repurchase agreements and other similar secured borrowing of $39.8 billion (31 December 2024: $37.0 billion) 5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group - page 46 - Behavioural maturity of financial assets and liabilities The cashflows presented in the previous section reflect the cashflows that will be contractually payable over the residual maturity of the instruments. However, contractual maturities do not necessarily reflect the timing of actual repayments or cashflow. In practice, certain assets and liabilities behave differently from their contractual terms, especially for short-term customer accounts, credit card balances and overdrafts, which extend to a longer period than their contractual maturity. On the other hand, mortgage balances tend to have a shorter repayment period than their contractual maturity date. Expected customer behaviour is assessed and managed on a country basis using qualitative and quantitative techniques, including analysis of observed customer behaviour over time. Maturity of financial liabilities on an undiscounted basis The following table analyses the contractual cashflows payable for the Group's financial liabilities by remaining contractual maturities on an undiscounted basis. The financial liability balances in the table below will not agree with the balances reported in the consolidated balance sheet as the table incorporates all contractual cashflows, on an undiscounted basis, relating to both principal and interest payments. Derivatives not treated as hedging derivatives are included in the 'On demand' time bucket and not by contractual maturity. Within the 'More than five years and undated' maturity band are undated financial liabilities, the majority of which relate to subordinated debt, on which interest payments are not included as this information would not be meaningful, given the instruments are undated. Interest payments on these instruments are included within the relevant maturities up to five years. 30.06.25 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Deposits by banks 30,417 2,320 1,422 197 1,202 4,341 2,603 2 42,504 Customer accounts 423,779 38,700 31,103 15,716 12,640 9,353 51,116 4,824 587,231 Derivative financial instruments 1 68,339 51 114 74 51 195 389 665 69,878 Debt securities in issue 3,620 7,712 10,810 7,204 5,520 9,351 24,852 24,614 93,683 Subordinated liabilities and other borrowed funds 19 131 12 150 51 1,536 976 12,141 15,016 Other liabilities 15,572 42,796 2,129 813 1,934 1,813 1,630 7,830 74,517 Total liabilities 541,746 91,710 45,590 24,154 21,398 26,589 81,566 50,076 882,829 31.12.24 Deposits by banks 24,303 2,360 1,660 862 589 4,347 1,939 4 36,064 Customer accounts 380,377 37,790 26,277 10,384 10,438 9,937 47,642 3,396 526,241 Derivative financial instruments 1 80,055 13 12 10 3 216 592 1,163 82,064 Debt securities in issue 3,622 4,551 11,007 7,056 6,319 10,261 23,184 21,337 87,337 Subordinated liabilities and other borrowed funds 19 134 46 206 14 392 2,345 13,800 16,956 Other liabilities 10,421 44,933 2,894 1,408 152 4,433 682 4,802 69,725 Total liabilities 498,797 89,781 41,896 19,926 17,515 29,586 76,384 44,502 818,387 1 Derivatives are on a discounted basis Interest Rate Risk in the Banking Book The following table provides the estimated impact to a hypothetical base case projection of the Group's earnings under the following scenarios: �� A 50 basis point parallel interest rate shock (up and down) to the current market-implied path of rates, across all yield curves �� A 100 basis point parallel interest rate shock (up and down) to the current market-implied path of rates, across all yield curves These interest rate shock scenarios assume all other economic variables remain constant. The sensitivities shown represent the estimated change to a hypothetical base case projected net interest income (NII), plus the change in interest rate implied income and expense from FX swaps used to manage banking book currency positions, under the different interest rate shock scenarios. - page 47 - The base case projected NII is based on the current market-implied path of rates and forward rate expectations. The NII sensitivities below stress this base case by a further 50 or 100bps. Actual observed interest rate changes will likely differ from market expectation. Accordingly, the shocked NII sensitivity does not represent a forecast of the Group's net interest income. The interest rate sensitivities are indicative stress tests and based on simplified scenarios, estimating the aggregate impact of an unanticipated, instantaneous parallel shock across all yield curves over a one-year horizon. The assessment assumes that the size and mix of the balance sheet remain constant and that there are no specific management actions in response to the change in rates. No assumptions are made in relation to the impact on credit spreads in a changing rate environment. Significant modelling and behavioural assumptions are made regarding scenario simplification, market competition, pass-through rates, asset and liability re-pricing tenors, and price flooring. In particular, the assumption that interest rates of all currencies and maturities shift by the same amount concurrently, and that no actions are taken to mitigate the impacts arising from this are considered unlikely. Reported sensitivities will vary over time due to a number of factors including changes in balance sheet composition, market conditions, customer behaviour and risk management strategy. Therefore, while the NII sensitivities are a relevant measure of the Group's interest rate exposure, they should not be considered an income or profit forecast. Estimated one-year impact to earnings from a parallel shift in yield curves at the beginning of the period of: 30.06.25 USD bloc $million HKD bloc $million SGD bloc $million GBP bloc $million CNY bloc 2 $million INR bloc $million EUR bloc 2 $million Other currency bloc 1 $million Total $million + 50 basis points 30 40 20 20 - 20 - 40 170 - 50 basis points (40) (60) (30) (20) (20) (20) (10) (70) (270) + 100 basis points 50 70 30 30 10 40 10 80 320 - 100 basis points (100) (130) (60) (40) (40) (40) (20) (140) (570) 31.12.24 + 50 basis points 20 30 10 10 20 30 10 80 210 - 50 basis points (40) (30) (20) (10) (30) (30) (20) (90) (270) + 100 basis points 30 60 20 20 30 40 30 160 390 - 100 basis points (90) (50) (40) (30) (50) (40) (40) (210) (550) 1 The largest exposures within the Other currency bloc are JPY and TWD 2 The +50bps CNY and EUR sensitivities are positive, but round to zero As at 30 June 2025, the Group estimates the one-year impact of an instantaneous, parallel increase across all yield curves of 50 basis points to increase projected NII by $170 million. The equivalent impact from a parallel decrease of 50 basis points would result in a reduction in projected NII of $270 million. The Group estimates the one-year impact of an instantaneous, parallel increase across all yield curves of 100 basis points to increase projected NII by $320 million. The equivalent impact from a parallel decrease of 100 basis points would result in a reduction in projected NII of $570 million. The benefit from rising interest rates is primarily from reinvesting at higher yields and from assets re-pricing faster and to a greater extent than deposits. NII sensitivity in falling rate scenarios has increased versus 31 December 2024, due to an increase in balance sheet size, with assets repricing faster than liabilities, and due to lower HIBOR rates. This impact was partially offset by an increase in programmatic hedging. Over the course of H1 2025 the notional of interest rate swaps and HTC-accounted bond portfolios used to reduce NII sensitivity through the cycle increased from $64 billion to $75 billion. As at June 2025, the portfolios had a weighted average maturity of 2.7 years, which reflects the behaviouralised lives of the rate-insensitive deposit and equity balances that they hedge, and a yield of 3.6 per cent. In addition, $18 billion of fixed rate commercial assets provide structural offset to the structural liabilities. Non-Trading VaR The average level of non-trading VaR in H1 2025 was $47.3 million, 37 per cent higher than H2 2024 ($34.5 million) and 40 per cent higher than H1 2024 ($33.9 million). The increase in non-trading average VaR was driven by an increase in market volatility combined with a VaR model enhancement to make the model more responsive to such an upturn in market volatility, an increase in the interest rate risk of the Treasury portfolio and larger US agency bonds inventory in the CIB non-trading portfolio. - page 48 - Daily Value at Risk (VaR at 97.5%, one day) (reviewed) Non-trading 1 6 months ended 30.06.25 6 months ended 31.12.24 6 months ended 30.06.24 Average $million High $million Low $million Half Year $million Average $million High $million Low $million Half Year $million Average $million High $million Low $million Half Year $million Interest Rate Risk 40.7 64.6 23.8 56.6 25.3 32.9 17.4 32.5 30.8 35.5 26.4 32.4 Credit Spread Risk 20.8 29.0 13.9 24.5 16.8 17.7 13.8 15.7 17.7 24.8 10.0 17.8 Foreign Exchange Risk - - - - - - - - - - - - Commodity Risk 2.2 4.8 0.8 1.1 1.3 1.6 0.8 0.8 1.3 1.8 0.6 1.5 Equity Risk - - - - 0.4 0.8 - - 0.4 0.9 - 0.1 Diversification effect 2 (16.4) NA NA (19.8) (9.3) NA NA (10.2) (16.3) NA NA (11.0) Total 2 47.3 66.6 32.3 62.3 34.5 41.0 28.6 38.8 33.9 44.1 29.2 40.8 1 The non-trading book VaR does not include the loan underwriting business 2 The total VaR is non-additive across risk types due to diversification effects, which is measured as the difference between the sum of the VaR by individual risk type or business and the combined total VaR. As the maximum and minimum occur on different days for different risk types or businesses, it is not meaningful to calculate a portfolio diversification benefit for these measures Operational and Technology Risk Operational and Technology Risk profile Operational and Technology risks remain elevated in areas such as Change Mismanagement Risk, Operational Resilience and Third-Party Risk Management, which are being addressed through ongoing control enhancement programmes. The Group also prioritises management of Systems Health/Technology risk, Transaction Processing and Regulatory Compliance risks. Additionally, the Group continues to monitor and manage Operational and Technology risks associated with external factors such as geopolitical issues, cyber-attacks threats and the misuse of Artificial Intelligence. This enables the Group to keep pace with new business developments, whilst ensuring that its risk and control frameworks evolve accordingly. The Group continues to enhance its risk management capabilities to understand the full spectrum of risks in the operating environment, strengthen its defences and improve its overall resilience. Other principal risks The losses arising from operational failures for other principal and integrated risks are reported as operational losses. Operational losses do not include operational risk-related credit impairments. - page 49 - Capital review The Capital review provides an analysis of the Group's capital and leverage position, and requirements. Capital summary The Group's capital, leverage and minimum requirements for own funds and eligible liabilities (MREL) position is managed within the Board-approved risk appetite. The Group is well capitalised with low leverage and high levels of loss-absorbing capacity. 30.06.25 31.12.24 CET1 capital 14.3% 14.2% Tier 1 capital 16.9% 16.9% Total capital 20.5% 21.5% Leverage ratio 4.7% 4.8% MREL ratio 33.3% 34.2% Risk-weighted assets (RWA) $million 259,684 247,065 The Group's capital, leverage and MREL positions were all above current requirements and Board-approved risk appetite. The Group's CET1 capital increased 11 basis points to 14.3 percent of RWA since FY2024. Profits, movements in FVOCI, FX translation reserves and decrease in regulatory deductions were partly offset by RWA growth and distributions (including ordinary share buybacks of $1.5 billion during the period). As at 30 June 2025 the Group's Pillar 2A was 3.7 percent of RWA, of which at least 2.1 per cent must be held in CET1 capital. The Group's minimum CET1 capital requirement was 10.5 per cent at 30 June 2025. The Group CET1 capital ratio at 30 June 2025 reflects the share buybacks of $1.5 billion announced during the period. The CET1 capital ratio also includes an accrual for the FY 2025 dividend. The Board has recommended an interim dividend for H1 2025 of $288 million or 12.3 cents per share representing a third of the total 2024 dividend. In addition, the Board has announced a further share buyback of $1.3 billion, the impact of this will reduce the Group's CET1 capital by around 50 basis points in the third quarter of 2025. The Group expects to manage CET1 capital dynamically within our 13-14 per cent target range, in support of our aim of delivering future sustainable shareholder distributions. The Group's MREL leverage requirement as at H1 2025 was equivalent 28.1 per cent of RWA. This is composed of a minimum requirement of 24.3 per cent of RWA and the Group's combined buffer (comprising the capital conservation buffer, the G-SII buffer and the countercyclical buffer). The Group's MREL ratio was 33.3 per cent of RWA and 9.3 per cent of leverage exposure at H1 2025. During the period, the Group successfully raised $6.5 billion of MREL eligible securities from its holding company, Standard Chartered PLC. Issuance include $1.0 billion of Additional Tier 1 and $5.5 billion of callable senior debt. The Group is a G-SII, with a 1.0 per cent G-SII CET1 capital buffer. The Standard Chartered PLC G-SII disclosure is published at: sc.com/en/investors/financial-results. - page 50 - Capital base 1 (reviewed) 30.06.25 $million 31.12.24 $million CET1 capital instruments and reserves Capital instruments and the related share premium accounts 5,154 5,201 Of which: share premium accounts 3,989 3,989 Retained earnings 26,692 24,950 Accumulated other comprehensive income (and other reserves) 10,099 8,724 Non-controlling interests (amount allowed in consolidated CET1) 234 235 Independently reviewed interim and year-end profits 3,341 4,072 Foreseeable dividends (570) (923) CET1 capital before regulatory adjustments 44,950 42,259 CET1 regulatory adjustments Additional value adjustments (prudential valuation adjustments) (660) (624) Intangible assets (net of related tax liability) (5,995) (5,696) Deferred tax assets that rely on future profitability (excludes those arising from temporary differences) (18) (31) Fair value reserves related to net losses on cash flow hedges (378) (4) Deduction of amounts resulting from the calculation of excess expected loss (617) (702) Net gains on liabilities at fair value resulting from changes in own credit risk 275 278 Defined-benefit pension fund assets (159) (149) Fair value gains arising from the institution's own credit risk related to derivative liabilities (103) (97) Exposure amounts which could qualify for risk weighting of 1250% (35) (44) Total regulatory adjustments to CET1 (7,690) (7,069) CET1 capital 37,260 35,190 Additional Tier 1 capital (AT1) instruments 6,537 6,502 AT1 regulatory adjustments (20) (20) Tier 1 capital 43,777 41,672 Tier 2 capital instruments 9,534 11,449 Tier 2 regulatory adjustments (30) (30) Tier 2 capital 9,504 11,419 Total capital 53,281 53,091 Total risk-weighted assets (unreviewed) 259,684 247,065 1 Capital base is prepared on the regulatory scope of consolidation - page 51 - Movement in total capital (reviewed) 6 months ended 30.06.25 $million 6 months ended 31.12.24 $million CET1 at 1 January/1 July 35,190 35,418 Ordinary shares issued in the period and share premium - - Share buyback (1,500) (1,500) Profit for the period/year 3,341 1,663 Foreseeable dividends deducted from CET1 (570) (445) Difference between dividends paid and foreseeable dividends 9 (477) Movement in goodwill and other intangible assets (299) 310 Foreign currency translation differences 753 (15) Non-controlling interests (1) (1) Movement in eligible other comprehensive income 307 268 Deferred tax assets that rely on future profitability 13 13 Decrease/(increase) in excess expected loss 85 (49) Additional value adjustments (prudential valuation adjustment) (36) 54 IFRS 9 transitional impact on regulatory reserves including day one - 2 Exposure amounts which could qualify for risk weighting 9 (5) Fair value gains arising from the institution's own Credit Risk related to derivative liabilities (6) (7) Others (35) (39) CET1 at 30 June/31 December 37,260 35,190 AT1 at 1 January/1 July 6,482 6,484 Net issuances 30 23 Foreign currency translation difference 5 (25) AT1 at 30 June/31 December 6,517 6,482 Tier 2 capital at 1 January/1 July 11,419 11,667 Regulatory amortisation (124) 367 Net (redemptions) (2,175) (517) Foreign currency translation difference 365 (100) Tier 2 ineligible minority interest 11 (1) Others 8 3 Tier 2 capital at 30 June/31 December 9,504 11,419 Total capital at 30 June/31 December 53,281 53,091 The main movements in capital in the period were: �� CET1 capital increased by $2.0 billion as retained profits of $3.3 billion, movement in FVOCI of $0.2 billion, foreign currency translation impact of $0.8 billion which were partly offset by share buybacks of $1.5 billion, distributions paid and foreseeable of $0.6 billion and an increase in regulatory deductions and other movements of $0.2 billion. �� AT1 capital remained constant as the issuance of $1.0 billion securities is offset by the redemption of another $1.0 billion securities. �� Tier 2 capital decreased by $1.9 billion due to the redemption of $2.2 billion of Tier 2 during the year and regulatory amortisation partly offset by foreign currency translation impact. - page 52 - Risk-weighted assets by business 30.06.25 Credit risk $million Operational risk $million Market risk $million Total risk $million Corporate & Investment Banking 128,605 22,555 30,969 182,129 Wealth & Retail Banking 47,027 10,583 - 57,610 Ventures 3,031 239 18 3,288 Central & other items 12,685 (799) 4,772 16,657 Total risk-weighted assets 191,348 32,578 35,758 259,684 31.12.24 1 Credit risk $million Operational risk $million Market risk $million Total risk $million Corporate & Investment Banking 124,635 19,987 24,781 169,403 Wealth & Retail Banking 47,764 9,523 - 57,287 Ventures 2,243 142 21 2,406 Central & other items 14,661 (173) 3,481 17,969 Total risk-weighted assets 189,303 29,479 28,283 247,065 Movement in risk-weighted assets Credit risk1 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 1 January 2024 1 116,621 50,771 1,885 22,146 191,423 27,861 24,867 244,151 Assets growth & mix 5,580 (2,449) 96 (3,855) (629) - - (629) Asset quality (2,031) (155) - (488) (2,674) - - (2,674) 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 (1,727) (1,067) - (367) (3,162) - - (3,162) Other, Including non-credit risk movements - - - (1,234) (1,234) 1,618 3,876 4,260 At 30 June 2024 1 118,905 47,917 1,981 16,201 185,004 29,479 27,443 241,926 Assets growth & mix 6,037 1,959 262 (1,321) 6,937 - - 6,937 Asset quality (441) (161) - 104 (498) - - (498) Risk-weighted assets efficiencies - - - - - - - - Model Updates 1,158 (819) - - 339 - (400) (61) Methodology and policy changes 38 39 - - 77 - - 77 Acquisitions and disposals - - - - - - - - Foreign currency translation (1,061) (330) - (324) (1,715) - - (1,715) Other, Including non-credit risk movements - (841) - - (841) - 1,240 399 At 31 December 2024 1 124,635 47,764 2,243 14,661 189,303 29,479 28,283 247,065 Assets growth & mix 847 (2,424) 788 (2,897) (3,686) - - (3,686) Asset quality 1,776 (96) - 556 2,236 - - 2,236 Risk-weighted assets efficiencies - - - - - - - - Model Updates (1,655) 232 - - (1,423) - 51 (1,372) Methodology and policy changes - - - - - - - - Acquisitions and disposals (14) (92) - (12) (118) - - (118) Foreign currency translation 3,016 1,643 - 377 5,036 - - 5,036 Other, Including non-credit risk movements - - - - - 3,099 7,424 10,523 At 30 June 2025 128,605 47,027 3,031 12,685 191,348 32,578 35,758 259,684 1 RWA balances are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2025. Prior periods have been re-presented and there is no change in total RWA - page 53 - Movements in risk-weighted assets RWA increased by $12.6 billion, or 5.1 per cent from 31 December 2024 to $259.7 billion. This was due to increase in Credit Risk RWA of $2.0 billion, Market Risk RWA of $7.5 billion and Operational Risk RWA of $3.1 billion. Corporate & Investment Banking Credit Risk RWA increased by $3.9 billion, or 3.2 per cent from 31 December 2024 to $128.6 billion due to: �� $3.0 billion increase from foreign currency translation �� $1.8 billion increase mainly due to deterioration in asset quality from sovereign downgrades and other client grade moves �� $0.8 billion increase from changes in asset growth and mix, of which: - $5.3 billion increase from asset growth - $4.5 billion decrease from optimisation actions �� $1.7 billion decrease from industry-wide regulatory changes to align IRB model performance and from alpha factor used in the Internal Model Method (IMM) Wealth & Retail Banking Credit Risk RWA decreased by $0.7 billion, or 1.5 per cent from 31 December 2024 to $47.0 billion mainly due to: �� $2.4 billion decrease from changes in asset growth & mix �� $0.1 billion decrease mainly due to improvement in asset quality, mainly in Asia �� $0.1 billion decrease from exit of business in Gambia �� $1.6 billion increase from foreign currency translation �� $0.2 billion increase from industry-wide regulatory changes to align IRB model performance. Ventures Ventures is comprised of Mox Bank Limited, Trust Bank and SC Ventures. Credit Risk RWA increased by $0.8 billion, or 35.1 per cent from 31 December 2024 to $3.0 billion from asset balance growth, mainly from SC Ventures. Central & other items Central & other items RWA mainly relate to the Treasury Market's liquidity portfolio, equity investments and current and deferred tax assets. Credit Risk RWA decreased by $2.0 billion, or 13.5 per cent from 31 December 2024 to $12.7 billion mainly due to: �� $2.9 billion decrease from changes in asset growth & mix �� $0.6 billion increase due to deterioration in asset quality, mainly from sovereign downgrades and other client grade moves �� $0.4 billion increase from foreign currency translation Market Risk Total Market Risk RWA increased by $7.5 billion, or 26.4 per cent from 31 December 2024 to $35.8 billion due to: �� $2.6 billion increase in Standardised Approach (SA) Specific Interest Rate Risk RWA primarily due to increase in the Trading Book government bond portfolio �� $2.7 billion increase in Internal Models Approach (IMA) stressed VaR RWA due to increased IMA positions attributable mainly to interest rate exposures �� $1.3 billion RWA increase from Structural FX risk �� $0.9 billion RWA increase from IMA add-ons for risks not in VaR Operational Risk Operational Risk RWA increased by $3.1 billion, or 10.5 per cent from 31 December 2024 to $32.6 billion, mainly due to an increase in average income as measured over a rolling three-year time horizon. - page 54 - Leverage ratio The Group's leverage ratio, which excludes qualifying claims on central banks, was 4.7 per cent at H1 2025, which was above the current minimum requirement of 3.7 per cent. The leverage ratio was 11 basis points lower than FY2024. Leverage exposure increased by $64.9 billion from an increase in Other Assets of $78.6 billion, an increase in Derivatives including cash collateral of $3.2 billion, Off-balance sheet items of $2.3 billion, securities financing transaction add-on of $1.8 billion partly offset by an increase in claims on central banks of $19.2 billion, regulatory consolidation adjustments and unsettled regular way trades of $1.0 billion, and an increase in asset amounts deducted in determining Tier 1 capital (Leverage) of $0.8 billion. Tier 1 capital increased by $2.1 billion as CET1 capital increased by $2.0 billion following profits for the period of $3.3 billion, partly offset by the announcement of a share buyback of $1.5 billion, and an AT1 issuance of $1.0 billion offset by a call announcement of $1.0 billion AT1 securities. Leverage ratio 30.06.25 $million 31.12.24 $million Tier 1 capital (end point) 43,777 41,672 Derivative financial instruments 64,225 81,472 Derivative cash collateral 13,895 11,046 Securities financing transactions (SFTs) 98,772 98,801 Loans and advances and other assets 737,044 658,369 Total on-balance sheet assets 913,936 849,688 Regulatory consolidation adjustments 1 (96,465) (76,197) Derivatives adjustments Derivatives netting (48,236) (63,934) Adjustments to cash collateral (12,032) (10,169) Net written credit protection 2,757 2,075 Potential future exposure on derivatives 54,443 51,323 Total derivatives adjustments (3,068) (20,705) Counterparty risk leverage exposure measure for SFTs 5,959 4,198 Off-balance sheet items 120,878 118,607 Regulatory deductions from Tier 1 capital (8,006) (7,247) Total exposure measure excluding claims on central banks 933,234 868,344 Leverage ratio excluding claims on central banks (%) 4.7 4.8 Average leverage exposure measure excluding claims on central banks 946,944 894,296 Average leverage ratio excluding claims on central banks (%) 4.6 4.7 Countercyclical leverage ratio buffer (%) 0.1 0.1 G-SII additional leverage ratio buffer (%) 0.4 0.4 1 Includes adjustment for qualifying central bank claims and unsettled regular way trades - page 55 - Statement of directors' responsibilities We confirm that to the best of our knowledge: �� The condensed consolidated interim financial statements have been prepared in accordance with UK-adopted IAS 34 Interim Financial Reporting and IAS 34 as adopted by the EU. �� The interim management report includes a fair review of the information required by: (a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the six months ended 30 June 2025 and their impact on the condensed consolidated interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year. (b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place during the six months ended 30 June 2025 that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could have materially affected the financial position or performance of the entity during that period. By order of the Board Diego De Giorgi Group Chief Financial Officer 31 July 2025 Standard Chartered PLC Board of Directors Group Chair Executive Directors Non-Executive Directors Maria Ramos Bill Winters Shirish Apte Diego De Giorgi Jackie Hunt Diane Jurgens Robin Lawther Lincoln Leong Phil Rivett David Tang Linda Yueh - page 56 - Independent review report to Standard Chartered PLC Conclusion We have been engaged by Standard Chartered PLC (the 'Company' or, together with its subsidiaries, the 'Group') to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises the condensed consolidated interim income statement, the condensed consolidated interim statement of comprehensive income, the condensed consolidated interim balance sheet, the condensed consolidated interim statement of changes in equity, the condensed consolidated interim cash flow statement, the related notes 1 to 30, and the risk and capital disclosures marked as 'reviewed' (together the 'condensed consolidated interim financial statements'). We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements in the half-yearly financial report for the six months ended 30 June 2025 are not prepared, in all material respects, in accordance with United Kingdom (UK) adopted International Accounting Standard 34 (IAS 34), IAS 34 as adopted by the European Union (EU), and the Disclosure Guidance and Transparency Rules (DTR) of the UK's Financial Conduct Authority (FCA). Basis for Conclusion We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' (ISRE) issued by the Financial Reporting Council (FRC). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with UK adopted international accounting standards and international financial reporting standard as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted IAS 34 and IAS 34 as adopted by the EU, and the DTR of the UK's FCA. Conclusions Relating to Going Concern Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis of Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern. Responsibilities of the directors The directors are responsible for preparing the half-yearly financial report in accordance with UK adopted IAS 34 and IAS 34 as adopted by the EU, and the DTR of the UK's FCA. In preparing the half-yearly financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the review of the financial information In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report. - page 57 - Use of our report This report is made solely to the company in accordance with guidance contained in ISRE 2410 (UK) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the FRC. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed. Ernst & Young LLP London 31 July 2025 - page 58 - Condensed consolidated interim income statement For the six months ended 30 June 2025 Notes 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Interest income 12,485 14,194 Interest expense (9,441) (11,019) Net interest income 3 3,044 3,175 Fees and commission income 2,627 2,363 Fees and commission expense (495) (442) Net fee and commission income 4 2,132 1,921 Net trading income 5 5,438 4,749 Other operating income 6 292 (54) Operating income 10,906 9,791 Staff costs (4,393) (4,336) Premises costs (175) (177) General administrative expenses (1,135) (1,027) Depreciation and amortisation (544) (516) Operating expenses 7 (6,247) (6,056) Operating profit before impairment losses and taxation 4,659 3,735 Credit impairment 8 (336) (240) Goodwill, property, plant and equipment and other impairment 9 (19) (147) Profit from associates and joint ventures 19 79 144 Profit before taxation 4,383 3,492 Taxation 10 (1,057) (1,123) Profit for the period 3,326 2,369 Profit attributable to: Non-controlling interests 17 (9) Parent company shareholders 3,309 2,378 Profit for the period 3,326 2,369 cents cents Earnings per share: Basic earnings per ordinary share 12 129.1 83.3 Diluted earnings per ordinary share 12 125.5 81.3 The notes form an integral part of these financial statements. - page 59 - Condensed consolidated interim statement of comprehensive income For the six months ended 30 June 2025 Notes 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Profit for the period 3,326 2,369 Other comprehensive income/(loss) Items that will not be reclassified to income statement: 124 (265) Own credit losses on financial liabilities designated at fair value through profit or loss (7) (410) Equity instruments at fair value through other comprehensive income/(loss) 122 (25) Actuarial gains on retirement benefit obligations 5 31 Revaluation (deficit)/surplus1 (3) 15 Taxation relating to components of other comprehensive income 7 124 Items that may be reclassified subsequently to income statement: 1,293 (649) Exchange differences on translation of foreign operations: Net gains/(losses) taken to equity 824 (1,017) Net (losses)/gains on net investment hedges (76) 377 Share of other comprehensive (loss)/income from associates and joint ventures (30) 9 Debt instruments at fair value through other comprehensive income: Net valuation gains taken to equity 245 56 Reclassified to income statement (9) 90 Net impact of expected credit gains/(losses) 9 (19) Cash flow hedges: Net movements in cash flow hedge reserve 451 (171) Taxation relating to components of other comprehensive income/(loss) (121) 26 Other comprehensive income/(loss) for the period, net of taxation 1,417 (914) Total comprehensive income for the period 4,743 1,455 Total comprehensive income attributable to: Non-controlling interests 42 (16) Parent company shareholders 4,701 1,471 Total comprehensive income for the period 4,743 1,455 1 Revaluation (deficit)/surplus on reclassification of building to investment property measured at fair value - page 60 - Condensed consolidated interim balance sheet As at 30 June 2025 Notes 30.06.25 $million 31.12.24 $million Assets Cash and balances at central banks 80,165 63,447 Financial assets held at fair value through profit or loss 13 201,523 177,517 Derivative financial instruments 13,14 64,225 81,472 Loans and advances to banks 13 42,386 43,593 Loans and advances to customers 13 286,731 281,032 Investment securities 13 158,588 144,556 Other assets 18 65,429 43,468 Current tax assets 572 663 Prepayments and accrued income 3,070 3,207 Interests in associates and joint ventures 19 1,405 1,020 Goodwill and intangible assets 16 6,091 5,791 Property, plant and equipment 17 2,506 2,425 Deferred tax assets 10 399 414 Retirement benefit schemes in surplus 165 151 Assets classified as held for sale 20 681 932 Total assets 913,936 849,688 Liabilities Deposits by banks 13 30,883 25,400 Customer accounts 13 517,390 464,489 Repurchase agreements and other similar secured borrowing 13,15 5,250 12,132 Financial liabilities held at fair value through profit or loss 13 99,551 85,462 Derivative financial instruments 13,14 69,878 82,064 Debt securities in issue 13 70,088 64,609 Other liabilities 21 48,638 44,681 Current tax liabilities 967 726 Accruals and deferred income 6,286 6,896 Subordinated liabilities and other borrowed funds 13,24 8,778 10,382 Deferred tax liabilities 10 715 567 Provisions for liabilities and charges 345 349 Retirement benefit schemes in deficit 282 266 Liabilities included in disposal groups held for sale 20 215 381 Total liabilities 859,266 798,404 Equity Share capital and share premium account 25 6,648 6,695 Other reserves 10,099 8,724 Retained earnings 29,983 28,969 Total parent company shareholders' equity 46,730 44,388 Other equity instruments 25 7,500 6,502 Total equity excluding non-controlling interests 54,230 50,890 Non-controlling interests 440 394 Total equity 54,670 51,284 Total equity and liabilities 913,936 849,688 The notes form an integral part of these financial statements. These financial statements were approved by the Board of Directors and authorised for issue on 31 July 2025 and signed on its behalf by: Diego De Giorgi Group Chief Financial Officer - page 61 - Condensed consolidated interim statement of changes in equity For the six months ended 30 June 2025 Ordinary share capital and share premium account $million Preference share capital and share premium account $million Capital and merger reserves 1 $million Own credit adjustment 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 Translation reserve $million Retained earnings $million Parent company share-holders' equity $million Other equity instru-ments $million Non-controlling interests $million Total $million As at 1 January 2024 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 - - - - - - - - 2,378 2,378 - (9) 2,369 Other comprehensive (loss)/income 7 - - - (360) 137 (81)�� (147) (644) 188 2,12 (907) - (7) (914) Distributions - - - - - - - - - - - (25) (25) Other equity instruments issued, net of expenses - - - - - - - - - - 992 8 - 992 Treasury shares net movement - - - - - - - - 29 29 - - 29 Share option expense, net of taxation - - - - - - - - 148 148 - - 148 Dividends on ordinary shares - - - - - - - - (551) (551) - - (551) Dividends on preference shares and AT1 securities - - - - - - - - (209) (209) - - (209) Share buyback 3 (57) - 57 - - - - - (1,000) (1,000) - - (1,000) Other movements - - - - 7 - - 134�� (61)�� 80 - 555 135 As at 30 June 2024 5,264 1,494 17,510 (260) (546) 249 (56) (8,623) 29,381 44,413 6,504 410 51,327 Profit for the period - - - - - - - - 1,672 1,672 - 1 1,673 Other comprehensive (loss)/income 7 - - - (17) 305 5513 60 (91) 39 2,14 351 - (7) 344 Distributions - - - - - - - - - - - (18) (18) Other equity instruments issued, net of expenses - - - - - - - - - - 576 8 - 576 Redemption of other equity instruments - - - - - - - - - - (553) 10 - (553) Treasury shares net movement - - - - - - - - (197) (197) - - (197) Share option expense, net of taxation - - - - - - - - 121 121 - - 121 Dividends on ordinary shares - - - - - - - - (229) (229) - - (229) Dividends on preference shares and AT1 securities - - - - - - - - (248) (248) - - (248) Share buyback 6 (63) - 63 - - - - - (1,500) (1,500) - - (1,500) Other movements - - - (1) - - - 76 4 (70)�� 5 (25) 10 85 (12) As at 31 December 2024 5,201 1,494 17,573 (278) (241) 304 4 (8,638) 28,969 44,388 6,502 394 51,284 1 First half year ended 30 June 2024 includes capital reserve of $5 million, capital redemption reserve of $394 million and merger reserve of $17,111 million. Further movement of $63 million in capital redemption reserve during half year ended 31 December 2024 2 Comprises actuarial gain, net of taxation on Group defined benefit schemes 3 On 23 February 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 million, the total consideration paid was $1,000 million and the buyback completed on 25 June 2024. The total number of shares purchased was 113,266,516, representing 4.25 per cent of the ordinary shares in issue at the beginning of the programme. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 4 2024 movement includes realisation of translation adjustment loss from sale of SCB Zimbabwe Limited ($190 million), SCB Angola S.A. ($31 million), SCB Sierra Leone Limited ($25 million) transferred to other operating income 5 Movements during first half year ended 30 June 2024 includes non-controlling interest pertaining to Mox Bank Limited ($8 million) and Trust Bank Singapore Limited ($47 million). Further movement in non-controlling interest from Mox Bank Limited ($6 million) and Trust Bank Singapore Limited ($8 million) partly offset by SCB Angola S.A. ($6 million) during half year ended 31 December 2024 6 On 30 July 2024, the Group announced the buyback programme for a $1,500 million share buyback of its ordinary shares of $0.50 each. As at December 2024, nominal value of share purchases was $63 million with the total number of shares purchased of 126,262,414 and the total consideration was $1,355 million. The buyback programme was completed on 30 January 2025 with a further 11,300,128 shares purchased in 2025, representing 0.44 per cent of shares in issue at the beginning of the programme. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 7 All the amounts are net of tax 8 Includes $992 million and $576 million (SGD 750 million) fixed rate resetting perpetual subordinated contingent convertible AT1 securities issued by Standard Chartered PLC (refer note 25) 9 Movement in 2024 mainly includes movements related to Ghana hyperinflation 10 Relates to redemption of AT1 securities of SGD 750 million ($553 million) and realised translation loss ($25 million) reported in other movements 11 Includes $147 million gain on sale of equity investment transferred to retained earnings partly offset by $76 million reversal of deferred tax liability 12 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 13 Includes $72 million mark-to-market gain on equity instrument partly offset by $27 million gain on sale of equity investment transferred to retained earnings 14 Includes $27 million gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings - page 62 - Condensed consolidated interim statement of changes in equity For the six months ended 30 June 2025 continued Ordinary share capital and share premium account $million Preference share capital and share premium account $million Capital and merger reserves 15 $million Own credit adjustment 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 Translation reserve $million Retained earnings $million Parent company share-holders' equity $million Other equity instru-ments $million Non-controlling interests $million Total $million As at 1 January 2025 5,201 1,494 17,573 (278) (241) 304 4 (8,638) 28,969 44,388 6,502 394 51,284 Profit for the period - - - - - - - - 3,309 3,309 - 17 3,326 Other comprehensive income 7 - - - 3 171 5220 374 718 742,20 1,392 - 25 1,417 Distributions - - - - - - - - - - - (35) (35) Other equity instruments issued, net of expenses - - - - - - - - - - 99419 - 994 Treasury shares net movement - - - - - - - - (76) (76) - - (76) Share option expense, net of taxation - - - - - - - - 139 139 - - 139 Dividends on ordinary shares - - - - - - - - (670) (670) - - (670) Dividends on preference shares and AT1 securities - - - - - - - - (244) (244) - - (244) Share buyback6,16 (47) - 47 - - - - - (1,500) (1,500) - - (1,500) Other movements - - - - (25) - - 3517 (18)9 (8) 4 3918 35 As at 30 June 2025 5,154 1,494 17,620 (275) (95) 356 378 (7,885) 29,983 46,730 7,500 440 54,670 15 Includes capital reserve of $5 million, capital redemption reserve of $504 million and merger reserve of $17,111 million 16 On 21 February 2025, the Group announced the buyback programme for a $1,500 million share buyback of its ordinary shares of $0.50 each. As at 30 June 2025, the total number of shares purchased of 82,248,452 representing 3.41 per cent of the ordinary shares in issue at the beginning of the programme, for total consideration of $1,222 million, out of which $72 million was paid in July 2025, and a further $278 million relating to irrevocable obligation to buy back shares under the buyback programme has been recognised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account 17 Includes realisation of translation adjustment loss from sale of Standard Chartered Bank Gambia Limited ($8 million) and Standard Chartered Research and Technology India Private Limited ($3 million) transferred to other operating income 18 Movement primarily from non-controlling interest pertaining to Mox Bank Limited ($12 million), Trust Bank Singapore Limited ($7 million), Furaha Holdings Limited ($3 million), Standard Chartered Research and Technology India Private Limited ($12 million), Century Leader Limited ($6 million) offset by Standard Chartered Bank Gambia Limited ($1 million) 19 Includes $994 million fixed rate resetting perpetual subordinated contingent convertible AT1 securities issued by Standard Chartered PLC (refer note 25) 20 Includes $68 million gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings Note 25 includes a description of each reserve. The notes form an integral part of these financial statements. - page 63 - Condensed consolidated interim cash flow statement For the six months ended 30 June 2025 Notes 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Cash flows from operating activities: Profit before taxation 4,383 3,492 Adjustments for non-cash items and other adjustments included within income statement 30 689 1,730 Change in operating assets 30 (28,293) (41,582) Change in operating liabilities 30 50,180 20,466 Contributions to defined benefit schemes (28) (19) UK and overseas taxes paid (700) (793) Net cash from/(used in) operating activities 26,231 (16,706) Cash flows from investing activities: Internally generated capitalised software 16 (451) (474) Disposal of internally generated capitalised software 16 11 5 Purchase of property, plant and equipment (125) (76) Disposal of property, plant and equipment 9 31 Acquisition of investment associates, and joint ventures, net of cash acquired (97) (4) Disposal of investment in subsidiaries, associates and joint ventures, net of cash acquired 15 41 Dividends received from associates and joint ventures 19 45 - Purchase of investment securities (106,044) (120,307) Disposal and maturity of investment securities 97,706 125,925 Net cash (used in)/from investing activities (8,931) 5,141 Cash flows from financing activities: Treasury share purchase (123) - Treasury share sale 47 29 Cancellation of shares through share buyback (1,150) (1,000) Premises and equipment lease liability principal payment (107) (105) Issue of Additional Tier 1 capital, net of expenses 994 992 Interest paid on subordinated liabilities 30 (247) (252) Repayment of subordinated liabilities 30 (2,175) (1,000) Proceeds from issue of senior debts 30 7,953 7,698 Repayment of senior debts 30 (7,040) (7,191) Interest paid on senior debts 30 (1,678) (548) Net cash inflow from Non-controlling interest 24 47 Distributions and dividends paid to non-controlling interests, preference shareholders and AT1 securities (279) (234) Dividends paid to ordinary shareholders (670) (551) Net cash used in financing activities (4,451) (2,115) Net increase/(decrease) in cash and cash equivalents 12,849 (13,680) Cash and cash equivalents at beginning of the period 89,928 107,635 Effect of exchange rate movements on cash and cash equivalents 2,474 (1,740) Cash and cash equivalents at end of the period1 105,251 92,215 1 Comprises cash and balances at central banks $80,165 million (30 June 2024: $64,086 million), treasury bills and other eligible bills $9,005 million (30 June 2024: $3,873 million), loans and advances to banks $8,518 million (30 June 2024: $12,691 million), loans and advances to customers $15,447 million (30 June 2024 $20,611 million) investments $3,028 million (30 June 2024: $824 million) less restricted balances $10,912 million (30 June 2024: $9,870 million) Interest received was $12,082 million (30 June 2024: $14,575 million), interest paid was $9,574 million (30 June 2024: $10,948 million). - page 64 - Contents - Notes to the financial statements Section Note Basis of preparation 1 Accounting policies Performance/return 2 Segmental information 3 Net interest income 4 Net fees and commission 5 Net trading income 6 Other operating income 7 Operating expenses 8 Credit impairment 9 Goodwill, property, plant and equipment and other impairment 10 Taxation 11 Dividends 12 Earnings per ordinary share Assets and liabilities held at fair value 13 Financial instruments 14 Derivative financial instruments Financial instruments held at amortised cost 15 Reverse repurchase and repurchase agreements including other similar lending and borrowing Other assets and investments 16 Goodwill and intangible assets 17 Property, plant and equipment 18 Other assets 19 Investments in associates and joint ventures 20 Assets held for sale and associated liabilities Funding, accruals, provisions, contingent liabilities and legal proceedings 21 Other liabilities 22 Contingent liabilities and commitments 23 Legal and regulatory matters Capital instruments, equity and reserves 24 Subordinated liabilities and other borrowed funds 25 Share capital, other equity instruments and reserves Other disclosure matters 26 Related party transactions 27 Post balance sheet events 28 Corporate governance 29 Statutory accounts 30 Cash flow statement - page 65 - Notes to the financial statements 1. Accounting policies Statement of compliance The Group's condensed consolidated interim financial statements consolidate those of Standard Chartered PLC (the Company) and its subsidiaries (together referred to as the Group) and equity account the Group's interests in associates and jointly controlled entities. These interim financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority (FCA) and with UK-adopted International Accounting Standard 34 (IAS 34 Interim Financial Reporting) and IAS 34 as adopted by the European Union (EU), as there are no applicable differences for the periods presented. They should be read in conjunction with the 2024 Annual Report, which was prepared in accordance with the requirements of the Companies Act 2006, UK-adopted international accounting standards, and International Financial Reporting Standards (IFRS) (Accounting Standards) as adopted by the European Union (EU IFRS). The Group's Annual Report 2025 will continue to be prepared in accordance with these frameworks. The following parts of the Risk review and Capital review form part of these financial statements: a) Risk review: Disclosures marked as 'reviewed' from the start of the Credit Risk section to the end of Other principal risks in the same section. b) Capital review: Tables marked as 'reviewed' from the start of 'CRD Capital base' to the end of 'Movement in total capital', excluding 'Total risk-weighted assets'. There were no new accounting standards or interpretations that had a material effect on these Condensed consolidated interim financial statements. Basis of preparation The condensed consolidated financial statements have been prepared on a going concern basis and under the historical cost convention, as modified by the revaluation of cash-settled share-based payments, fair value through other comprehensive income, and financial assets and liabilities (including derivatives) at fair value through profit or loss. The condensed consolidated financial statements are presented in United States dollars ($), being the presentation and functional currency of the Group, and all values are rounded to the nearest million dollars, except when otherwise indicated. The accounting policies that we applied for these interim condensed consolidated financial statements are consistent with those described on pages 295 to 380 of the 2024 Annual Report, as are the methods of computation, except for the accounting policy change summarised below. Re-presentation of segmental information During the period there has been a change in respect to the classification of income attributable to geographic markets which have been re-presented to ensure recognition is in line with transfer pricing principles for services performed including origination, structuring, booking, and risk management. This is necessary to align the presentation of the disclosure of geographic markets' operating income with client segments in line with the Regulatory News Service (RNS) filing on Re-Presentation of Financial Information issued on 2 April 2025. Prior period amounts have been re-presented in line with the current year basis of preparation to align with the information reviewed by the Chief Operating Decision Maker (CODM). Where the re-representation has impacted disclosure, it is included within the footnotes in the following sections and tables: �� Statement of results table �� Group Chief Financial Officer's review, Summary of financial performance table �� Financial review tables including the following: Operating income by product, profit before tax by client segment, Adjusted net interest income and margin, and Restructuring, DVA, FFG and other items �� Supplementary financial information tables including the following: Underlying performance by client segment, Corporate & Investment Banking, Wealth & Retail Banking, Ventures, Central & other items, Underlying performance by key market, and Quarterly underlying operating income by product �� Underlying versus reported results reconciliations, Net interest income and Non NII table - page 66 - �� Movement in risk-weighted assets �� Risk review: Movement tables for Corporate & Investment Banking (reviewed) , Wealth & Retail Banking (reviewed) and Wealth & Retail Banking - Secured (reviewed) �� Risk review: Credit impairment charge (reviewed) �� Notes to the financial statements: Note 2 Segmental information and Note 4 Net fees and commission.�� Change in accounting policy Prior period amounts for certain Credit risk tables (required by IFRS 7 - Financial Instruments: Disclosure) within the Risk review were also represented for a change in accounting policy for the presentation of the Group's geographic disclosures to align to information reported to key management personnel. These disclosures changed from being based on a management view, which was principally the location from which a client relationship is managed, to being based on a financial view reflecting the location in which exposures are financially booked. This change provides more reliable and relevant information because it more closely reflects the Group's exposure to risk presented to key management personnel. The change impacted the following tables: Loans and advances analysis by client segment, credit quality and key geography, Forborne and other modified loans by key geography, and Industry and Retail Products analysis of loans and advances by key geography - Corporate & Investment Banking and Central & other items. The most significant impact of this change was in net loans and advances to customers in the UK, which increased by $14.4 billion. This amount was reclassified from a number of geographic locations. There has been no impact to Earnings Per Share or Diluted Earnings per Share from this change. Significant accounting estimates and judgements In determining the carrying amounts of certain assets and liabilities, the Group makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The Group's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. The significant judgements made by management in applying the Group's accounting policies and key sources of uncertainty were the same as those applied to the consolidated financial statements as at, and for, the year ended 31 December 2024. IFRS and Hong Kong accounting requirements As required by the Hong Kong Listing Rules, an explanation of the differences in accounting practices between UK-adopted IFRS and Hong Kong Financial Reporting Standards is required to be disclosed. There would be no significant differences had these accounts been prepared in accordance with Hong Kong Financial Reporting Standards. Going concern These financial statements were approved by the Board of Directors on 31 July 2025. The directors have made an assessment of the Group's ability to continue as a going concern. This assessment has been made having considered the current macroeconomic and geopolitical headwinds, including: �� Review of the Group Strategy and Corporate Plan, including the annual budget �� An assessment of the actual performance to date, loan book quality, credit impairment, legal and regulatory matters, compliance matters, recent regulatory developments �� Consideration of stress testing performed, including the Group Recovery Plan (RP) which includes the application of stressed scenarios. Under the tests and through the range of scenarios, the results of these exercises and the RP demonstrate that the Group has sufficient capital and liquidity to continue as a going concern and meet minimum regulatory capital and liquidity requirements �� Analysis of the capital position of the Group, including the capital and leverage ratios, and ICAAP which summarises the Group's capital and risk assessment processes, assesses its capital requirements and the adequacy of resources to meet them �� Analysis of the funding and liquidity position of the Group, including the Internal Liquidity Adequacy Assessment Process (ILAAP), which considers the Group's liquidity position, its framework and whether sufficient liquidity resources are being maintained to meet liabilities as they fall due, was also reviewed. Further, funding and liquidity was considered in the context of the risk appetite metrics, including the LCR ratio �� The level of debt in issue, including redemptions and issuances during the year, debt falling due for repayment in the next 12 months and further planned debt issuances, including the appetite in the market for the Group's debt �� The Group's portfolio of debt securities held at amortised cost �� A detailed review of all principal risks as well as topical and emerging risks. - page 67 - Based on the analysis performed, the directors confirm they are satisfied that the Group has adequate resources to continue in business for a period of at least 12 months from 31 July 2025. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the financial statements. 2. Segmental information Basis of preparation The analysis reflects how the client segments and markets are managed internally to drive better decision-making, resource allocation and return outcomes. Underlying segment and market performance is based on arms-length transfer pricing and reflects the underlying profitability including related capital and infrastructure costs. Income attribution to segment and markets is based on their contribution to the revenue generated across the network, considering factors such as booking location, trader and sales effort. Treasury outcomes such as MREL, FTP, Structural Hedges and Liquidity Pool which segments can directly benefit, influence, and optimise are allocated to individual business segments. Disclosures have been re-presented as explained in Note 1 Re-presentation of segmental information. The effect of the change has impacted the classification of cost and income across client segments. Client segments The Group's segmental reporting is in accordance with IFRS 8 - Operating Segments and is reported consistently with the internal performance framework and as presented to the Group's Management Team. Restructuring and other items excluded from underlying results The Group's reported IFRS performance is adjusted for certain items to arrive at alternative performance measures (APMs). These items include profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent and/or exceptional transactions that are 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 consistent performance period by period. The APMs are not within the scope of IFRS and are not a substitute for IFRS measures. These adjustments are set out below. Restructuring loss of $137 million includes ongoing charges related to portfolio and businesses being exited and optimising the Group's office space and property footprint. Fit for Growth (FFG) costs of $160 million, primarily severance costs, costs of staff working on FFG initiatives and legal and professional fees, reflect the impact of actions to transform the organisation to improve productivity, primarily additional redundancy charges, simplifying technology platforms. Reconciliations between underlying and reported results are set out in the tables below: 6 months ended 30.06.25 Underlying $million Restructuring $million FFG $million DVA $million Net gain/ loss on businesses disposed of/ held for sale $million Other items $million Reported $million Operating income 10,899 7 - 5 (5) - 10,906 Operating expenses (5,965) (129) (153) - - - (6,247) Operating profit/(loss) before impairment losses and taxation 4,934 (122) (153) 5 (5) - 4,659 Credit impairment (336) - - - - - (336) Other impairment (9) (3) (7) - - - (19) Profit from associates and joint ventures 91 (12) - - - - 79 Profit/(loss) before taxation 4,680 (137) (160) 5 (5) - 4,383 - page 68 - 6 months ended 30.06.24 Underlying $million Restructuring 2 $million FFG 2 $million DVA $million Net loss on businesses disposed of/ held for sale�� $million Other items 3 $million Reported $million Operating income 9,958 48 - (26) (189) - 9,791 Operating expenses (5,673) (197) (86) - - (100) (6,056) Operating profit/(loss) before impairment losses and taxation 4,285 (149) (86) (26) (189) (100) 3,735 Credit impairment (249) 9 - - - - (240) Other impairment (143) (4) - - - - (147) Profit from associates and joint ventures 64 80 - - - - 144 Profit/(loss) before taxation 3,957 (64) (86) (26) (189) (100) 3,492 1 Net loss on businesses disposal includes loss of $174 million relating to Zimbabwe exit 2 FFG charge previously reported within Restructuring has been re-presented as a separate item 3 Other items include $100 million charge relating to Korea equity-linked securities (ELS) portfolio Underlying performance by client segment 6 months ended 30.06.25 6 months ended 30.06.24 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Corporate & Investment Banking 3 $million Wealth & Retail Banking 3 $million Ventures 3 $million Central & other items 3 $million Total $million Operating income 6,583 4,162 320 (166) 10,899 6,194 3,884 80 (200) 9,958 External 6,317 1,834 321 2,427 10,899 5,221 1,761 80 2,896 9,958 Inter-segment 266 2,328 (1) (2,593) - 973 2,123 - (3,096) - Operating expenses (3,155) (2,429) (239) (142) (5,965) (3,045) (2,254) (228) (146) (5,673) Operating profit/(loss) before impairment losses and taxation 3,428 1,733 81 (308) 4,934 3,149 1,630 (148) (346) 4,285 Credit impairment 14 (332) (24) 6 (336) 54 (267) (43) 7 (249) Other impairment - (3) - (6) (9) (105) (27) - (11) (143) Profit from associates and joint ventures - - (11) 102 91 - - (6) 70 64 Underlying profit/(loss) before taxation 3,442 1,398 46 (206) 4,680 3,098 1,336 (197) (280) 3,957 Restructuring and other items 2 (146) (130) (1) (20) (297) (77) (195) (1) (192) (465) Reported profit/(loss) before taxation 3,296 1,268 45 (226) 4,383 3,021 1,141 (198) (472) 3,492 Total assets 512,928 129,591 7,534 263,883 913,936 443,567 122,625 5,115 264,120 835,427 Of which: loans and advances to customers 204,812 126,712 1,555 17,539 350,618 190,474 120,258 1,110 23,865 335,707 loans and advances to customers 140,930 126,707 1,555 17,539 286,731 130,672 120,249 1,110 23,865 275,896 loans held at fair value through profit or loss (FVTPL) 63,882 5 - - 63,887 59,802 9 - - 59,811 Total liabilities 507,646 244,591 6,010 101,019 859,266 469,158 208,419 4,347 102,176 784,100 Of which: customer accounts 1 332,952 240,612 5,718 2,851 582,133 316,543 204,221 4,046 7,452 532,262 1 Customer accounts includes FVTPL and repurchase agreements 2 Other items 2024 include $100 million charge relating to Korea equity linked securities (ELS) portfolio, $174 million primarily relating to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe 3 Segment results have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 - page 69 - Operating income by client segment 6 months ended 30.06.25 6 months ended 30.06.24 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Corporate & Investment Banking 2 $million Wealth & Retail Banking 2 $million Ventures $million Central & other items 2 $million Total $million Underlying versus reported: Underlying operating income 6,583 4,162 320 (166) 10,899 6,194 3,884 80 (200) 9,958 Restructuring 17 (13) - 3 7 26 16 - 6 48 DVA 5 - - - 5 (26) - - - (26) Other items 1 - - - (5) (5) - - - (189) (189) Reported operating income 6,605 4,149 320 (168) 10,906 6,194 3,900 80 (383) 9,791 Additional income by account: Net interest income 705 2,515 50 (226) 3,044 1,272 2,539 45 (681) 3,175 Net fees and commission income 1,088 1,074 30 (60) 2,132 993 955 19 (46) 1,921 Net trading and other income 1 4,812 560 240 118 5,730 3,929 406 16 344 4,695 Reported operating income 6,605 4,149 320 (168) 10,906 6,194 3,900 80 (383) 9,791 1 Other items in H1 2024 include loss of $174 million relating to the Zimbabwe exit 2 Segment results have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 3. Net interest income 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Balances at central banks 1,036 1,360 Loans and advances to banks 1,109 1,052 Loans and advances to customers 7,221 8,190 Debt securities 2,443 2,716 Other eligible bills 621 807 Accrued on impaired assets (discount unwind) 55 69 Interest income 12,485 14,194 Of which: financial instruments held at fair value through other comprehensive income 1,825 1,707 Deposits by banks 326 441 Customer accounts 7,053 8,361 Debt securities in issue 1,727 1,794 Subordinated liabilities and other borrowed funds 302 394 Interest expense on IFRS 16 lease liabilities 33 29 Interest expense 9,441 11,019 Net interest income 3,044 3,175 4. Net fees and commission 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Fees and commissions income 2,627 2,363 Of which: Financial instruments that are not fair valued through profit or loss 763 722 Trust and other fiduciary activities 358 305 Fees and commissions expense (495) (442) Of which: Financial instruments that are not fair valued through profit or loss (171) (125) Trust and other fiduciary activities (31) (25) Net fees and commission 2,132 1,921 - page 70 - 6 months ended 30.06.25 6 months ended 30.06.24 Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Total $million Corporate & Investment Banking $million Wealth & Retail Banking 1 $million Ventures1 $million Central & other items1 $million Total $million Transaction Services 781 - - - 781 704 - - - 704 Payments & Liquidity 315 - - - 315 290 - - - 290 Securities Services 166 - - - 166 127 - - - 127 Trade & Working Capital 300 - - - 300 287 - - - 287 Global Banking 551 - - - 551 504 - - - 504 Lending & Financial Solutions 323 - - - 323 336 - - - 336 Capital Market & Advisory 228 - - - 228 168 - - - 168 Global Markets 23 - - - 23 24 - - - 24 Macro Trading - - - - - 7 - - - 7 Credit Trading 22 - - - 22 17 - - - 17 Valuation & Other Adjustments 1 - - - 1 - - - - - Wealth solutions - 967 - - 967 - 822 - - 822 Investment Products - 548 - - 548 - 456 - - 456 Bancassurance - 419 - - 419 - 366 - - 366 Deposits & Mortgages - 104 - - 104 - 121 - - 121 CCPL & Other Unsecured Lending - 149 - - 149 - 161 - - 161 Ventures - - 43 - 43 - - 30 - 30 Digital Banks - - 26 - 26 - - 18 - 18 SC Ventures - - 17 - 17 - - 12 - 12 Treasury & Other - 13 - (4) 9 - 13 - (16) (3) Fees and commission income 1,355 1,233 43 (4) 2,627 1,232 1,117 30 (16) 2,363 Fees and commission expense (267) (159) (13) (56) (495) (239) (162) (11) (30) (442) Net fees and commission 1,088 1,074 30 (60) 2,132 993 955 19 (46) 1,921 1 Products have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 with no change in total income Upfront bancassurance consideration amounts are amortised on a straight-line basis over the contractual period to which the consideration relates. Deferred income on the balance sheet in respect of these activities is $392 million (30 June 2024: $448 million), which will be earned evenly over the remaining life of the contract until June 2032. For the six months ended 30 June 2025, $28 million of fee income was released from deferred income (30 June 2024: $28 million). For the bancassurance contract with the annual performance bonus, based on progress so far and expectation of meeting the performance targets by year-end with a high probability, a pro-rata portion of the total performance fee, equal to $119 million (30 June 2024: $116 million) of the fee has been recognised as fee income in the period. 5. Net trading income 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Net trading income 5,438 4,749 Significant items within net trading income include: Gains on instruments held for trading 1 4,353 3,717 Gains on financial assets mandatorily at fair value through profit or loss 2,710 2,499 Losses on financial assets designated at fair value through profit or loss (3) (1) Losses on financial liabilities designated at fair value through profit or loss (1,626) (1,595) 1 Includes $207 million loss (30 June 2024: $110 million gain) from the translation of foreign currency monetary assets and liabilities - page 71 - 6. Other operating income 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Other operating income includes: Rental income from operating lease assets 16 20 Net gain/(loss) on disposal of fair value through other comprehensive income debt instruments 9 (90) Net (loss)/gain on amortised cost financial assets (7) 4 Net gain/(loss) on sale of businesses 2423 (169)�� Dividend income 6 4 Other 26 177�� Other operating income 292 (54) 1 Includes loss of $174 million from sale of subsidiary (SCB Zimbabwe Limited) of which $190 million relates to CTA loss. loss of $15 million on disposal of aviation business, offset by gain of $17 million on disposal of Shoal and Autumn Life Pte (subsidiary) 2 Includes IAS 29 adjustment Ghana hyperinflationary impact ($106 million) 3 Includes gain of $239 million from disposal of Standard Chartered Research of which $3 million relates to currency translation adjustment loss, and gain of $9 million from the sale of the WRB business in Tanzania, partly offset by $5 million loss from the sale of Standard Chartered Bank Gambia Limited of which $8 million relates to Currency Translation Adjudgment loss On 26 June 2025, the Group disposed of its entire interest in Standard Chartered Research and Technology India Private Limited (SCRTIPL) a wholly owned subsidiary as part of a combined share swap and primary investment transaction (the Solv India transaction or the transaction). The transaction has resulted in the Group recognising Jumbotail Technologies Private Limited as an associate. The carrying amount of the net assets of SCRTIPL at the date of the Solv India transaction was $16 million. The Group recognised a gain on the transaction of $238 million. The consideration received in the combined share swap was $344 million, including a primary cash investment of $80 million. Disposal costs were approximately $9 million. The gain on disposal arose because the carrying value of the subsidiary's net assets was exceeded by the consideration received. No impairment of OCI balances was required. The disposal has resulted in the recycling of $3 million of Currency Translation Adjustments to profit and loss. The Group elected to apply the 12-month measurement exemption to finalise the purchase price allocation. The allocation is incomplete at half year as additional analysis is required to finalise the nature and value of intangible assets. 7. Operating expenses 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Staff costs: Wages and salaries 3,367 3,288 Social security costs 143 129 Other pension costs 215 223 Share-based payment costs 206 172 Other staff costs 462 524 4,393 4,336 Premises and equipment expenses 175 177 General administrative expenses 1,135 1,027 Depreciation and amortisation Property, plant and equipment: Premises 153 148 Equipment 66 39 Intangibles: Software 325 329 544 516 Total operating expenses 6,247 6,056 Other staff costs include redundancy expenses of $62 million (30 June 2024: $115 million). Further costs in this category include training, travel costs and other staff-related costs. Operating expenses include research expenditure of $500 million (30 June 2024: $480 million), which was recognised as an expense during the period. - page 72 - 8. Credit impairment 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Net credit impairment on loans and advances to banks and customers 332 256 Net credit impairment on debt securities�� 12 (41) Net credit impairment relating to financial guarantees and loan commitments (16) 24 Net credit impairment relating to other financial assets 8 1 Credit impairment charge 1 336 240 1 Includes impairment charge of $6 million (30 June 2024: $14 million release) on originated credit-impaired debt securities 9. Goodwill, property, plant and equipment and other impairment 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Impairment of other intangible assets (Note 16) 18 148 Other 1 (1) Goodwill, property, plant and equipment and other impairment 19 147 10. Taxation The following table provides analysis of taxation charge in the period: 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million The charge for taxation based upon the profit for the period comprises: Current tax: United Kingdom corporation tax at 25 per cent (2024: 25 per cent): Current tax charge on income for the period 5 10 Adjustments in respect of prior periods (including double tax relief) 8 2 Foreign tax: Current tax charge on income for the period 1,000 993 Adjustments in respect of prior periods (including double tax relief) (9) 27 1,004 1,032 Deferred tax: Origination/reversal of temporary differences 109 89 Adjustments in respect of prior periods (including double tax relief) (56) 2 53 91 Tax on profits on ordinary activities 1,057 1,123 Effective tax rate 24.1% 32.2% The tax charge for the period has been calculated by applying the effective rate of tax which is expected to apply for the year ending 31 December 2025 using rates substantively enacted at 30 June 2025. The rate has been calculated by estimating and applying an average annual effective income tax rate to each tax jurisdiction individually. The tax charge for the period of $1,057 million (30 June 2024: $1,123 million) on a profit before tax of $4,383 million (30 June 2024: $3,492 million) reflects the impact of non-creditable withholding taxes and other taxes, tax losses for which no deferred tax assets are recognised and non-deductible expenses offset by countries with tax rates lower than the UK, the most significant of which includes Hong Kong and Singapore and tax exempt income. Foreign tax includes current tax of $196 million (30 June 2024: $131 million) on the profits assessable in Hong Kong. Deferred tax includes origination or reversal of temporary differences of $9 million (30 June 2024: $27 million) provided at a rate of 16.5 per cent (30 June 2024: 16.5 per cent) on the profits assessable in Hong Kong. The Group falls within the Pillar Two global minimum tax rules which apply in the UK from 1 January 2024. The IAS 12 exception to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes has been applied. The current tax charge for the period ended 30 June 2025 includes $10 million in respect of Pillar Two income taxes (30 June 2024: $10 million). - page 73 - Deferred tax comprises assets and liabilities as follows: 30.06.25 31.12.24 Total $million Asset $million Liability $million Total $million Asset $million Liability $million Deferred tax comprises: Accelerated tax depreciation (377) 37 (414) (380) 19 (399) Impairment provisions on loans and advances 202 196 6 190 139 51 Tax losses carried forward 87 17 70 74 51 23 Equity Instruments at Fair value through other comprehensive income (74) (2) (72) (62) (12) (50) Debt Instruments at Fair value through other comprehensive income (60) 1 (61) (30) (14) (16) Cash flow hedges (89) (17) (72) (9) - (9) Own credit adjustment 17 1 16 4 4 - Retirement benefit obligations (5) 12 (17) (7) 16 (23) Share-based payments 51 11 40 54 12 42 Other temporary differences (68) 143 (211) 13 199 (186) (316) 399 (715) (153) 414 (567) 11. Dividends Ordinary equity shares 6 months ended 30.06.25 6 months ended 30.06.24 Cents per share $million Cents per share $million 2023 final dividend declared and paid during the period - - 21 551 2024 final dividend declared and paid during the period 28 670 - - The 2024 final dividend per share of 28 cents per ordinary share ($670 million) was paid to eligible shareholders on 19 May 2025, and is recognised in these interim accounts. Interim dividends on ordinary equity shares are recorded in the period in which they are declared and, in respect of the final dividend, have been approved by the shareholders. 2025 recommended interim ordinary share dividend The 2025 interim dividend of 12.3 cents per ordinary share will be paid in pounds sterling, Hong Kong dollars or US dollars on 30 September 2025 to shareholders on the UK register of members at the close of business in the UK on 8 August 2025. Preference shares and Additional Tier 1 (AT1) securities Dividends on these preference shares and securities classified as equity are recorded in the period in which they are declared. 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Non-cumulative redeemable preference shares: 7.014 per cent preference shares of $5 each 26 26 Floating rate preference shares of $5 each�� 24 27 50 53 AT1 securities: fixed rate resetting perpetual subordinated contingent convertible securities 194 156 244 209 1 Floating rate is based on Secured Overnight Financing Rate (SOFR), average rate paid for floating preference shares is 6.28 per cent (30 June 2024: 7.24 per cent) - page 74 - 12. Earnings per ordinary share 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Profit for the period attributable to equity holders 3,326 2,369 Non-controlling interest (17) 9 Dividend payable on preference shares and AT1 classified as equity (244) (209) Profit for the period attributable to ordinary shareholders 3,065 2,169 Items normalised: 1 Restructuring 137 64 FFG 160 86 DVA (5) 26 Net loss on sale of business 5 189 Other items - 100 Tax on normalised items (55) (67) Underlying profit for the period attributable to ordinary shareholders 3,307 2,567 Basic - weighted average number of shares (millions) 2,375 2,605 Diluted - weighted average number of shares (millions) 2,443 2,669 Basic earnings per ordinary share (cents) 129.1 83.3 Diluted earnings per ordinary share (cents) 125.5 81.3 Underlying basic earnings per ordinary share (cents) 139.2 98.5 Underlying diluted earnings per ordinary share (cents) 135.4 96.2 1 Refer to Note 2 segmental information for normalised items The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the basic weighted average number of shares excluding treasury shares held in employees benefit trust. When calculating diluted earnings per share, the weighted average number of shares in issue is adjusted for the effects of all expected dilutive potential ordinary shares held in respect of Standard Chartered PLC totalling 58 million (30 June 2024: 59 million). The total number of share options outstanding, under schemes considered to be potentially dilutive, was 10 million (30 June 2024: 5 million). These options have strike prices ranging from $5.03 to $8.36. Of the total number of employee share options and share awards at 30 June 2025, there were nil share options and awards which were anti-dilutive. The 230 million decrease (30 June 2024: 234 million decrease) in the basic weighted average number of shares is primarily due to the impact of the share buyback programmes completed during the period. - page 75 - 13. Financial instruments Classification and measurement Assets Notes Assets at fair value Assets held at amortised cost $million Total $million Trading $million Derivatives held for hedging $million Non-trading mandatorily at fair value through profit or loss $million Designated at fair value through profit or loss $million Fair value through other comprehensive income $million Total financial assets at fair value $million Cash and balances at central banks 1 - - - - - - 80,165 80,165 Financial assets held at fair value through profit or loss Loans and advances to banks 2 2,393 - - - - 2,393 - 2,393 Loans and advances to customers 2 7,961 - 158 - - 8,119 - 8,119 Reverse repurchase agreements and other similar secured lending 15 50 - 90,283 - - 90,333 - 90,333 Debt securities, alternative tier one and other eligible bills 93,044 - 138 46 - 93,228 - 93,228 Equity shares 7,287 - 163 - - 7,450 - 7,450 110,735 - 90,742 46 - 201,523 - 201,523 Derivative financial instruments 14 62,813 1,412 - - - 64,225 - 64,225 Loans and advances to banks 2,3 - - - - - - 42,386 42,386 of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 4,250 4,250 Loans and advances to customers 2 - - - - - - 286,731 286,731 of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 4,189 4,189 Investment securities Debt securities, alternative tier one and other eligible bills - - - - 102,407 102,407 55,210 157,617 Equity shares - - - - 971 971 - 971 - - - - 103,378 103,378 55,210 158,588 Other assets 18 - - - - - - 45,372 45,372 Assets held for sale 20 1 - - - - 1 622 623 Total at 30 June 2025 173,549 1,412 90,742 46 103,378 369,127 510,486 879,613 1 Comprises cash held at central banks in restricted accounts of $10,912 million, or on demand, or placements which are contractually due to mature overnight only. Other placements with central banks are reported as part of Loans and advances to customers 2 Further analysed in the Risk review and Capital review sections 3 Loans and advances to banks include amounts due on demand from banks other than central banks - page 76 - Assets Notes Assets at fair value Assets held at amortised cost $million Total $million Trading $million Derivatives held for hedging $million Non-trading mandatorily at fair value through profit or loss $million Designated at fair value through profit or loss $million Fair value through other comprehensive income $million Total financial assets at fair value $million Cash and balances at central banks 1 - - - - - - 63,447 63,447 Financial assets held at fair value through profit or loss Loans and advances to banks 2 2,213 - - - - 2,213 - 2,213 Loans and advances to customers 2 6,912 - 172 - - 7,084 - 7,084 Reverse repurchase agreements and other similar secured lending 15 336 - 85,859 - - 86,195 - 86,195 Debt securities, alternative tier one and other eligible bills 76,329 - 140 70 - 76,539 - 76,539 Equity shares 5,285 - 201 - - 5,486 - 5,486 91,075 - 86,372 70 - 177,517 - 177,517 Derivative financial instruments 14 78,906 2,566 - - - 81,472 - 81,472 Loans and advances to banks 2,3 - - - - - - 43,593 43,593 of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 2,946 2,946 Loans and advances to customers 2 - - - - - - 281,032 281,032 of which - reverse repurchase agreements and other similar secured lending 15 - - - - - - 9,660 9,660 Investment securities Debt securities, alternative tier one and other eligible bills - - - - 88,425 88,425 55,137 143,562 Equity shares - - - - 994 994 - 994 - - - - 89,419 89,419 55,137 144,556 Other assets 18 - - - - - - 34,585 34,585 Assets held for sale 20 - - - 5 - 5 884 889 Total at 31 December 2024 169,981 2,566 86,372 75 89,419 348,413 478,678 827,091 1 Comprises cash held at central banks in restricted accounts of $7,799 million, or on demand, or placements which are contractually due to mature overnight only. Other placements with central banks are reported as part of Loans and advances to customers 2 Further analysed in the Risk review and Capital review sections 3 Loans and advances to banks include amounts due on demand from banks other than central banks - page 77 - Liabilities Notes Liabilities at fair value Amortised cost $million Total $million Trading $million Derivatives held for hedging $million Designated at fair value through profit or loss $million Total financial liabilities at fair value $million Financial liabilities held at fair value through profit or loss Deposits by banks - - 1,994 1,994 - 1,994 Customer accounts 71 - 24,887 24,958 - 24,958 Repurchase agreements and other similar secured borrowing 15 - - 43,946 43,946 - 43,946 Debt securities in issue - - 12,997 12,997 - 12,997 Short positions 15,656 - - 15,656 - 15,656 15,727 - 83,824 99,551 - 99,551 Derivative financial instruments 14 67,886 1,992 - 69,878 - 69,878 Deposits by banks - - - - 30,883 30,883 Customer accounts - - - - 517,390 517,390 Repurchase agreements and other similar secured borrowing 15 - - - - 5,250 5,250 Debt securities in issue - - - - 70,088 70,088 Other liabilities 21 - - - - 47,921 47,921 Subordinated liabilities and other borrowed funds 24 - - - - 8,778 8,778 Liabilities included in disposal groups held for sale 20 - - - - 194 194 Total at 30 June 2025 83,613 1,992 83,824 169,429 680,504 849,933 Financial liabilities held at fair value through profit or loss Deposits by banks - - 1,893 1,893 - 1,893 Customer accounts - - 21,772 21,772 - 21,772 Repurchase agreements and other similar secured borrowing 15 925 - 32,614 33,539 - 33,539 Debt securities in issue 1 - 13,730 13,731 - 13,731 Short positions 14,527 - - 14,527 - 14,527 15,453 - 70,009 85,462 - 85,462 Derivative financial instruments 14 80,037 2,027 - 82,064 - 82,064 Deposits by banks - - - - 25,400 25,400 Customer accounts - - - - 464,489 464,489 Repurchase agreements and other similar secured borrowing 15 - - - - 12,132 12,132 Debt securities in issue - - - - 64,609 64,609 Other liabilities 21 - - - - 44,047 44,047 Subordinated liabilities and other borrowed funds 24 - - - - 10,382 10,382 Liabilities included in disposal groups held for sale 20 - - - - 360 360 Total at 31 December 2024 95,490 2,027 70,009 167,526 621,419 788,945 Financial liabilities designated at fair value through profit or loss 30.06.25 $million 31.12.24 $million Carrying balance aggregate fair value 83,824 70,009 Amount contractually obliged to repay at maturity 83,728 70,166 Difference between aggregate fair value and contractually obliged to repay at maturity 96 (157) Cumulative change in Fair Value accredited to Credit Risk difference (286) (276) The net fair value loss on financial liabilities designated at fair value through profit or loss was $1,626 million for the period (31 December 2024: net loss of $3,252 million). Further details of the Group's own credit adjustment (OCA) valuation technique is described later in this Note. - page 78 - Valuation of financial instruments The Valuation Methodology function is responsible for independent price verification, oversight of fair value and appropriate value adjustments and escalation of valuation issues. Independent price verification is the process of determining that the valuations incorporated into the financial statements are validated independent of the business area responsible for the product. The Valuation Methodology function has oversight of the fair value adjustments to ensure the financial instruments are priced to exit. These are key controls in ensuring the material accuracy of the valuations incorporated in the financial statements. The market data used for price verification (PV) may include data sourced from recent trade data involving external counterparties or third parties such as Bloomberg, Reuters, brokers and consensus pricing providers. The Valuation Methodology function performs an ongoing review of the market data sources that are used as part of the PV and fair value processes which are formally documented on a semi-annual basis detailing the suitability of the market data used for price testing. Price verification uses independently sourced data that is deemed most representative of the market the instruments trade in. To determine the quality of the market data inputs, factors such as independence, relevance, reliability, availability of multiple data sources and methodology employed by the pricing provider are taken into consideration. The Valuation and Benchmarks Committee is the valuation governance forum consisting of representatives from Group Market Risk, Product Control, Valuation Methodology and the business, which meets monthly to discuss and approve the independent valuations of the inventory. For Principal Finance, the Investment Committee meeting is held on a quarterly basis to review investments and valuations. Significant accounting estimates and judgements The Group evaluates the significance of financial instruments and material accuracy of the valuations incorporated in the financial statements as they involve a high degree of judgement and estimation uncertainty in determining the carrying values of financial assets and liabilities at the balance sheet date. �� Fair value of financial instruments is determined using valuation techniques and estimates (see below) which, to the extent possible, use market observable inputs, but in some cases use non-market observable inputs. Changes in the observability of significant valuation inputs can materially affect the fair values of financial instruments �� When establishing the exit price of a financial instrument using a valuation technique, the Group estimates valuation adjustments in determining the fair value. �� In determining the valuation of financial instruments, the Group makes judgements on the amounts reserved to cater for model and valuation risks, which cover both Level 2 and Level 3 assets, and the significant valuation judgements in respect of Level 3 instruments. �� Where the estimated measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based on models that use a significant degree of non-market-based unobservable inputs. Valuation techniques Refer to the fair value hierarchy explanation - Level 1, 2 and 3. �� Financial instruments held at fair value - Debt securities - asset-backed securities: Asset-backed securities are valued based on external prices obtained from consensus pricing providers, broker quotes, recent trades, arrangers' quotes, etc. Where an observable price is available for a given security, it is classified as Level 2. In instances where third-party prices are not available or reliable, the security is classified as Level 3. The fair value of Level 3 securities is estimated using market standard cash flow models with input parameter assumptions which include prepayment speeds, default rates, discount margins derived from comparable securities with similar vintage, collateral type, and credit ratings. - Debt securities in issue: These debt securities relate to structured notes issued by the Group. Where independent market data is available through pricing vendors and broker sources, these positions are classified as Level 2. Where such liquid external prices are not available, valuations of these debt securities are implied using input parameters such as bond spreads and credit spreads, and are classified as Level 3. These input parameters are determined with reference to the same issuer (if available) or proxies from comparable issuers or assets. - page 79 - - Derivatives: Derivative products are classified as Level 2 if the valuation of the product is based upon input parameters which are observable from independent and reliable market data sources. Derivative products are classified as Level 3 if there are significant valuation input parameters which are unobservable in the market, such as products where the performance is linked to more than one underlying variable. Examples are foreign exchange basket options, equity options based on the performance of two or more underlying indices, and interest rate products with quanto payouts. In most cases these unobservable correlation parameters cannot be implied from the market, and methods such as historical analysis and comparison with historical levels or other benchmark data must be employed. - Equity shares - unlisted equity investments: The majority of unlisted equity investments are valued based on market multiples, including Price to Book (P/B), Price-to-Earnings (P/E) or enterprise value to earnings before income tax, depreciation and amortisation (EV/EBITDA) ratios of comparable listed companies. The primary inputs for the valuation of these investments are the actual financials or forecasted earnings of the investee companies and market multiples obtained from the comparable listed companies. To ensure comparability between these unquoted investments and the comparable listed companies, appropriate adjustments are also applied (for example, liquidity and size) in the valuation. In circumstances where an investment does not have direct comparables or where the multiples for the comparable companies cannot be sourced from reliable external sources, alternative valuation techniques (for example, discounted cash flow model or net asset value ("NAV") or option pricing model), which use predominantly unobservable inputs or Level 3 inputs, may be applied. Even though market multiples for the comparable listed companies can be sourced from third-party sources (for example, Bloomberg), and those inputs can be deemed Level 2 inputs, all unlisted investments (excluding those where observable inputs are available, for example, over-the-counter (OTC) prices) are classified as Level 3 on the basis that the valuation methods involve judgements ranging from determining comparable companies to discount rates where the discounted cash flow method is applied. - Loans and advances: These primarily include loans in the FM Bond and Loan Syndication business which were not fully syndicated as of the balance sheet date and other financing transactions within Financial Markets, and loans and advances including reverse repurchase agreements that do not have SPPI cashflows or are managed on a fair value basis. Where available, their loan valuation is based on observable clean sales transactions prices or market observable spreads. If observable credit spreads are not available, proxy spreads based on comparables with similar credit grade, sector and region, are used. Where observable transaction prices, credit spreads and market standard proxy methods are available, these loans are classified as Level 2. Where there are no recent transactions or comparables, these loans are classified as Level 3. - Other debt securities: These debt securities include convertible bonds, corporate bonds, credit and structured notes. Where quoted prices are available through pricing vendors, brokers or observable trading activities from liquid markets, these are classified as Level 2 and valued using such quotes. Where there are significant valuation inputs which are unobservable in the market, due to illiquid trading or the complexity of the product, these are classified as Level 3. The valuations of these debt securities are implied using input parameters such as bond spreads and credit spreads. These input parameters are determined with reference to the same issuer (if available) or proxied from comparable issuers or assets �� Financial instruments held at amortised cost The following sets out the Group's basis for establishing fair values of amortised cost financial instruments and their classification between Levels 1, 2 and 3. As certain categories of financial instruments are not actively traded, there is a significant level of management judgement involved in calculating the fair values: - Cash and balances at central banks: The fair value of cash and balances at central banks is their carrying amounts. - Debt securities in issue, subordinated liabilities and other borrowed funds: The aggregate fair values are calculated based on quoted market prices. For those notes where quoted market prices are not available, a discounted cash flow model is used based on a current market-related yield curve appropriate for the remaining term to maturity. - Deposits and borrowings: The estimated fair value of deposits with no stated maturity is the amount repayable on demand. The estimated fair value of fixed interest-bearing deposits and other borrowings without quoted market prices is based on discounted cash flows using the prevailing market rates for debts with a similar Credit Risk and remaining maturity. - page 80 - - Investment securities: For investment securities that do not have directly observable market values, the Group utilises a number of valuation techniques to determine fair value. Where available, securities are valued using input proxies from the same or closely related underlying (for example, bond spreads from the same or closely related issuer) or input proxies from a different underlying (for example, a similar bond but using spreads for a particular sector and rating). Certain instruments cannot be proxies as set out above, and in such cases the positions are valued using non-market observable inputs. This includes those instruments held at amortised cost and predominantly relates to asset-backed securities. The fair value for such instruments is usually proxies from internal assessments of the underlying cash flows. - Loans and advances to banks and customers: For loans and advances to banks, the fair value of floating rate placements and overnight deposits is their carrying amounts. The estimated fair value of fixed interest-bearing deposits is based on discounted cash flows using the prevailing money market rates for debts with a similar Credit Risk and remaining maturity. - The Group's loans and advances to customers' portfolio is well diversified by geography and industry. Approximately a quarter of the portfolio reprices within one month, and approximately half reprices within 12 months. Loans and advances are presented net of provisions for impairment. - The fair value of loans and advances to customers with a residual maturity of less than one year generally approximates the carrying value. The estimated fair value of loans and advances with a residual maturity of more than one year represents the discounted amount of future cash flows expected to be received, including assumptions relating to prepayment rates and Credit Risk. - Expected cash flows are discounted at current market rates to determine fair value. The Group has a wide range of individual instruments within its loans and advances portfolio and, as a result, providing quantification of the key assumptions used to value such instruments is impractical. - Other assets: Other assets comprise primarily of cash collateral and trades pending settlement. The carrying amount of these financial instruments is considered to be a reasonable approximation of fair value as they are either short-term in nature or reprice to current market rates frequently. Fair value adjustments When establishing the exit price of a financial instrument using a valuation technique, the Group considers adjustments to the modelled price which market participants would make when pricing that instrument. The main valuation adjustments (described further below) in determining fair value for financial assets and financial liabilities are as follows: 01.01.25 $million Movement during the year $million 30.06.25 $million 01.01.24 $million Movement during the year $million 31.12.24 $million Bid-offer valuation adjustment 117 6 123 115 2 117 Credit valuation adjustment 134 5 139 119 15 134 Debit valuation adjustment (105) (8) (113) (129) 24 (105) Model valuation adjustment 5 1 6 4 1 5 Funding valuation adjustment 41 (9) 32 33 8 41 Other fair value adjustments 26 19 45 25 1 26 Total 218 14 232 167 51 218 Income deferrals Day 1 and other deferrals 138 (11) 127 109 29 138 Total 138 (11) 127 109 29 138 Note: Amounts shown in brackets represent an asset and credit to the income statement �� Bid-offer valuation adjustment: Generally, market parameters are marked on a mid-market basis in the revaluation systems, and a bid-offer valuation adjustment is required to quantify the expected cost of neutralising the business' positions through dealing away in the market, thereby bringing long positions to bid and short positions to offer. The methodology to calculate the bid-offer adjustment for a derivative portfolio involves netting between long and short positions and the grouping of risk by strike and tenor based on the hedging strategy where long positions are marked to bid and short positions marked to offer in the systems. - page 81 - �� Credit valuation adjustment (CVA): The Group accounts for CVA against the fair value of derivative products. CVA is an adjustment to the fair value of the transactions to reflect the possibility that our counterparties may default and we may not receive the full market value of the outstanding transactions. It represents an estimate of the adjustment a market participant would include when deriving a purchase price to acquire our exposures. CVA is calculated for each subsidiary, and within each entity for each counterparty to which the entity has exposure and takes account of any collateral we may hold. The Group calculates the CVA by using estimates of future positive exposure, market-implied probability of default (PD) and recovery rates. Where market-implied data is not readily available, we use market-based proxies to estimate the PD. Wrong-way risk occurs when the exposure to a counterparty is adversely correlated with the credit quality of that counterparty, and the Group has implemented a model to capture this impact for key wrong-way exposures. The Group also captures the uncertainties associated with wrong-way risk in the Group's Prudential Valuation Adjustments framework. �� Debit valuation adjustment (DVA): The Group calculates DVA adjustments on its derivative liabilities to reflect changes in its own credit standing. The Group's DVA adjustments will increase if its credit standing worsens and conversely, decrease if its credit standing improves. For derivative liabilities, a DVA adjustment is determined by applying the Group's probability of default to the Group's negative expected exposure against the counterparty. The Group's probability of default and loss expected in the event of default is derived based on bond and CDS spreads associated with the Group's issuances and market standard recovery levels. The expected exposure is modelled based on the simulation of the underlying risk factors over the expected life of the deal. This simulation methodology incorporates the collateral posted by the Group and the effects of master netting agreements. �� Model valuation adjustment: Valuation models may have pricing deficiencies or limitations that require a valuation adjustment. These pricing deficiencies or limitations arise due to the choice, implementation and calibration of the pricing model. �� Funding valuation adjustment (FVA): The Group makes FVA adjustments against derivative products, including embedded derivatives. FVA reflects an estimate of the adjustment to its fair value that a market participant would make to incorporate funding costs or benefits that could arise in relation to the exposure. FVA is calculated by determining the net expected exposure at a counterparty level and then applying a funding rate to those exposures that reflect the market cost of funding. The FVA for uncollateralised (including partially collateralised) derivatives incorporates the estimated present value of the market funding cost or benefit associated with funding these transactions. �� Other fair value adjustments: For certain products, the prices cannot be replicated by usual models or the choice of model inputs can be more subjective. In these circumstances, an adjustment may be necessary to reflect the prices available in the market. �� Day one and other deferrals: In certain circumstances the initial fair value is based on a valuation technique which differs to the transaction price at the time of initial recognition. However, these gains can only be recognised when the valuation technique used is based primarily on observable market data. In those cases where the initially recognised fair value is based on a valuation model that uses inputs which are not observable in the market, the difference between the transaction price and the valuation model is not recognised immediately in the income statement. The difference is amortised to the income statement until the inputs become observable, or the transaction matures or is terminated. Other deferrals primarily represent adjustments taken to reflect the specific terms and conditions of certain derivative contracts which affect the termination value at the measurement date. In addition, the Group calculates own credit adjustment (OCA) on its issued debt designated at fair value, including structured notes, in order to reflect changes in its own credit standing. Issued debt is discounted utilising the spread at which similar instruments would be issued or bought back at the measurement date as this reflects the value from the perspective of a market participant who holds the identical item as an asset. OCA measures the difference between the fair value of issued debt as of reporting date and theoretical fair values of issued debt adjusted up or down for changes in own credit spreads from inception date to the measurement date. Under IFRS 9 the change in the OCA component is reported under other comprehensive income. The Group's OCA reserve will increase if its credit standing worsens in comparison to the inception of the trade and, conversely, decrease if its credit standing improves. The Group's OCA reserve will reverse over time as its liabilities mature. - page 82 - Fair value hierarchy - financial instruments held at fair value The fair values of quoted financial assets and liabilities in active markets are based on current prices. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets for identical instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor liquidity, fair values have been determined using valuation techniques which, to the extent possible, use market observable inputs, but in some cases use unobservable inputs. Valuation techniques used include discounted cash flow analysis and pricing models and, where appropriate, comparison with instruments that have characteristics similar to those of the instruments held by the Group. Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to the observability of the significant inputs used to determine the fair values. Changes in the observability of significant valuation inputs during the reporting period may result in a transfer of assets and liabilities within the fair value hierarchy. The Group recognises transfers between levels of the fair value hierarchy when there is a significant change in either its principal market or the level of observability of the inputs to the valuation techniques as at the end of the reporting period. �� Level 1: Fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities. �� Level 2: Fair value measurements are those with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable. �� Level 3: Fair value measurements are those where inputs which could have a significant effect on the instrument's valuation are not based on observable market data. - page 83 - The following tables show the classification of financial instruments held at fair value into the valuation hierarchy: Assets 30.06.25 31.12.24 Level 1 $million Level 2 $million Level 3 $million Total $million Level 1 $million Level 2 $million Level 3 $million Total $million Financial instruments held at fair value through profit or loss Loans and advances to banks - 2,122 271 2,393 - 2,213 - 2,213 Loans and advances to customers - 5,781 2,338 8,119 - 5,147 1,937 7,084 Reverse repurchase agreements and other similar secured lending - 86,941 3,392 90,333 19 82,937 3,239 86,195 Debt securities and other eligible bills 40,762 50,584 1,882 93,228 32,331 42,615 1,593 76,539 Of which: Issued by central banks and governments 1 37,273 18,183 4 55,460 30,278 13,355 9 43,642 Issued by corporates other than financial institutions 1 14 6,227 235 6,476 7 4,860 399 5,266 Issued by financial institutions 1 3,475 26,174 1,643 31,292 2,046 24,400 1,185 27,631 Equity shares 7,132 - 318 7,450 5,287 8 191 5,486 Derivative financial instruments 770 63,351 104 64,225 386 80,958 128 81,472 Of which: Foreign exchange 158 55,876 26 56,060 140 72,870 37 73,047 Interest rate 23 5,845 55 5,923 27 6,296 80 6,403 Credit - 274 18 292 - 388 9 397 Equity and stock index options - 184 5 189 - 349 2 351 Commodity 589 1,172 - 1,761 219 1,055 - 1,274 Investment securities Debt securities and other eligible bills 59,414 42,993 - 102,407 50,249 38,176 - 88,425 Of which: Issued by central banks and governments 1 47,073 23,000 - 70,073 41,395 16,916 - 58,311 Issued by corporates other than financial institutions 1 - 431 - 431 - 490 - 490 Issued by financial institutions 1 12,341 19,562 - 31,903 8,854 20,770 - 29,624 Equity shares 30 7 934 971 27 2 965 994 Total assets 2 108,108 251,779 9,239 369,126 88,299 252,056 8,053 348,408 Liabilities Financial instruments held at fair value through profit or loss Deposits by banks - 1,664 330 1,994 - 1,522 371 1,893 Customer accounts - 20,672 4,286 24,958 - 19,058 2,714 21,772 Repurchase agreements and other similar secured borrowing - 43,946 - 43,946 - 33,539 - 33,539 Debt securities in issue - 11,649 1,348 12,997 - 12,317 1,414 13,731 Short positions 8,359 7,209 88 15,656 8,789 5,558 180 14,527 Derivative financial instruments 446 69,208 224 69,878 419 81,387 258 82,064 Of which: Foreign exchange 137 57,419 19 57,575 183 69,684 8 69,875 Interest rate 30 7,285 21 7,336 14 8,586 23 8,623 Credit - 2,672 132 2,804 - 2,131 189 2,320 Equity and stock index options - 350 52 402 - 157 37 194 Commodity 279 1,482 - 1,761 222 829 1 1,052 Total liabilities 8,805 154,348 6,276 169,429 9,208 153,381 4,937 167,526 1 Includes covered bonds of $3,231 million (31 December 2024: $3,727 million), securities issued by Multilateral Development Banks/International Organisations of $15,928 million (31 December 2024: $10,679 million), and State-owned agencies and development banks of $25,561 million (31 December 2024: $16,759 million) 2 The table above does not include held for sale assets of $1 million (31 December 2024: $5 million) .These are reported in Note 20 together with their fair value hierarchy - page 84 - The fair value of financial assets and financial liabilities classified as Level 2 in the fair value hierarchy that are subject to complex modelling techniques is $286 million (31 December 2024: $739 million) and $350 million (31 December 2024: $320 million) respectively. There were no significant changes to valuation or levelling approaches during the period ending 30 June 2025. There were no significant transfers of financial assets and liabilities measured at fair value between Level 1 and Level 2 during the period ended 30 June 2025. Fair value hierarchy - financial instruments measured at amortised cost The following table shows the carrying amounts and incorporates the Group's estimate of fair values of those financial assets and liabilities not presented on the Group's balance sheet at fair value. These fair values may be different from the actual amount that will be received or paid on the settlement or maturity of the financial instrument. For certain instruments, the fair value may be determined using assumptions for which no observable prices are available. 30.06.25 31.12.24 Carrying value $million Fair value Carrying value $million Fair value Level 1 $million Level 2 $million Level 3 $million Total $million Level 1 $million Level 2 $million Level 3 $million Total $million Assets Cash and balances at central banks�� 80,165 - 80,165 - 80,165 63,447 - 63,447 - 63,447 Loans and advances to banks 42,386 - 42,363 48 42,411 43,593 - 43,430 165 43,595 of which - reverse repurchase agreements and other similar secured lending 4,250 - 4,254 - 4,254 2,946 - 2,948 - 2,948 Loans and advances to customers 286,731 - 29,641 257,678 287,319 281,032 - 40,582 238,986 279,568 of which - reverse repurchase agreements and other similar secured lending 4,189 - 4,178 11 4,189 9,660 - 9,618 42 9,660 Investment securities 2 55,210 - 53,756 - 53,756 55,137 - 53,050 24 53,074 Other assets�� 45,372 - 45,372 - 45,372 34,585 - 34,585 - 34,585 Assets held for sale 622 15 491 116 622 884 58 353 473 884 Total assets 510,486 15 251,788 257,842 509,645 478,678 58 235,447 239,648 475,153 Liabilities Deposits by banks 30,883 - 30,883 - 30,883 25,400 - 25,238 - 25,238 Customer accounts 517,390 - 513,906 - 513,906 464,489 - 461,549 - 461,549 Repurchase agreements and other similar secured borrowing 5,250 - 5,249 - 5,249 12,132 - 12,133 - 12,133 Debt securities in issue 70,088 34,121 35,757 - 69,878 64,609 32,209 32,181 - 64,390 Subordinated liabilities and other borrowed funds 8,778 7,904 559 - 8,463 10,382 9,599 429 - 10,028 Other liabilities�� 47,921 - 47,921 - 47,921 44,047 - 44,047 - 44,047 Liabilities held for sale 194 - 194 - 194 360 89 271 - 360 Total liabilities 680,504 42,025 634,469 - 676,494 621,419 41,897 575,848 - 617,745 1 The carrying amount of these financial instruments is considered to be a reasonable approximation of fair value as they are short-term in nature or reprice to current market rates frequently 2 Includes Government bonds and treasury bills of $25,525 million at 30 June 2025 (31 December 2024: $23,150 million) - page 85 - Fair value of financial instruments Level 3 Summary and significant unobservable inputs The following table presents the Group's primary Level 3 financial instruments which are held at fair value. The table also presents the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and the weighted average of those inputs: Instrument Value at 30 June 2025 Principal valuation technique Significant unobservable inputs Range 1 Weighted average 2 Assets $million Liabilities $million Loans and advances to banks 271 - Discounted cash flows Price/yield 4.5% - 4.9% 4.6% Loans and advances to customers 2,338 - Discounted cash flows Price/yield 0.7% - 100% 27.5% Recovery rate 94.7% - 96.3% 96.0% Reverse repurchase agreements and other similar secured lending 3,392 - Discounted cash flows Repo curve 1.7% - 8.5% 6.1% Price/yield 4.9% - 18.1% 6.9% Debt securities, alternative tier one and other eligible securities 1,878 - Discounted cash flows Price/yield 0.7% - 19.4% 6.7% Recovery rate 0.01% - 15.0% 5.7% Government bonds and treasury bills 4 - Discounted cash flows Price/yield 8.6% - 8.6% 8.6% Equity shares (includes private equity investments) 1,252 - Comparable pricing/yield EV/Revenue multiples 7.1x - 10.0x 7.6x P/E multiples 15.5x - 31.7x 20.0x P/B multiples 0.4x - 3.4x 1.3x P/S multiples 1.3x - 1.3x 1.3x Liquidity discount 18.9% - 30.2% 19.7% Discounted cash flows Discount rates 7.1% - 19.8% 13.8% Option pricing model Equity value based on EV/Revenue multiples 6.3x - 19.0x 13.3x Equity value based on EV/EBITDA multiples 3.9x - 3.9x 3.9x Equity value based on volatility 40.0% - 105.0% 101.5% Derivative financial instruments of which: Foreign exchange 26 19 Option pricing model Foreign exchange option implied volatility 39.4% - 42.5% 41.8% Discounted cash flows Interest rate curves 1.9% - 11.6% 3.9% Foreign exchange curves 1.7% - 27.6% 12.1% Interest rate 55 21 Discounted cash flows Interest rate curves 3.6% - 28.2% 4.7% Option pricing model Bond option implied volatility 0.1% - 1.1% 0.8% Credit 18 132 Discounted cash flows Price/yield 2.8% - 5.8% 5.0% Interest rate curves 3.6% - 4.5% 4.0% Option pricing model Credit spreads 0.1% - 2.2% 0.8% Bond option implied volatility 15.0% - 15.0% 15.0% Equity and stock index 5 52 Internal pricing model Equity-Equity correlation 28.1% - 100% 77.2% Equity-FX correlation (40.0)% - 46.2% 4.5% Deposits by banks - 330 Discounted cash flows Price/yield 4.5% - 5.8% 5.2% Customer accounts - 4,286 Internal pricing model Equity-Equity correlation 28.1% - 100% 77.2% Equity-FX correlation (40.0)% - 46.2% 4.5% Discounted cash flows Interest rate curves 5.1% - 11.6% 9.3% Price/yield 0.7% - 19.4% 10.0% Option pricing model Foreign exchange option implied volatility 5.5% - 6.8% 5.7% Debt securities in issue - 1,348 Discounted cash flows Price/yield 0.7% - 16.3% 4.9% Foreign exchange curves 4.4% - 13.1% 9.1% Internal pricing model Equity-Equity correlation 28.1% - 100% 77.2% Equity-FX correlation (40.0)% - 46.2% 4.7% Option pricing model Bond option implied volatility 0.1% - 15% 14.9% Short positions - 88 Discounted cash flows Price/yield 5.4% - 6.1% 5.4% Total 9,239 6,276 1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group's Level 3 financial instruments at 30 June 2025. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group's Level 3 financial instruments 2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful indicator - page 86 - Instrument Value at 31 December 2024 Principal valuation technique Significant unobservable inputs Range 1 Weighted average 2 Assets $million Liabilities $million Loans and advances to customers 1,937 - Discounted cash flows Price/yield 1.0% - 100% 20.8% Recovery rate 93.2% - 95.6% 95.1% Reverse repurchase agreements and other similar secured lending 3,239 - Discounted cash flows Repo curve 2.0% - 7.6% 6.2% Price/yield 2.3% - 10.5% 6.4% Debt securities, alternative tier one and other eligible securities 1,584 - Discounted cash flows Price/yield 0.7% - 15.3% 6.9% Recovery rate 0.01% - 16.3% 9.2% Government bonds and treasury bills 9 - Discounted cash flows Price/yield 23.5% - 23.5% 23.5% Equity shares (includes private equity investments) 1,156 - Comparable pricing/yield EV/EBITDA multiples 5.3x - 18.1x 14.8x EV/Revenue multiples 8.5x - 12.9x 9.0x P/E multiples 17.9x - 48.3x 46.9x P/B multiples 0.3x - 3.2x 1.3x P/S multiples 0.2x - 1.3x 0.2x Liquidity discount 10.0% - 30.0% 16.8% Discounted cash flows Discount rates 8.3% - 20.4% 10.1% Option pricing model Equity value based on EV/Revenue multiples 5.7x - 23.6x 16.2x Equity value based on EV/EBITDA multiples 10.1x - 10.1x 10.1x Equity value based on volatility 30.2% - 50.0% 30.5% Derivative financial instruments of which: Foreign exchange 37 8 Option pricing model Foreign exchange option implied volatility 10.2% - 46.2% 42.0% Interest rate curves 3.5% - 9.0% 4.2% Foreign exchange curves (0.03)% - 34.3% 6.1% Commodity - 1 Discounted cash flows Commodity prices $383.0 - $391.0 $387.0 CM-CM correlation 73.7% - 97.9% 86.0% Interest rate 80 23 Discounted cash flows Interest rate curves 3.5% - 43.9% 5.1% Option pricing model Bond option implied volatility 2.3% - 4.7% 3.5% Credit 9 189 Discounted cash flows Credit spreads 0.1% - 1.9% 0.9% Price/yield 4.8% - 6.6% 5.5% Equity and stock index 2 37 Internal pricing model Equity-Equity correlation 44.9% - 100% 80.0% Equity-FX correlation (36.4)% - 48.9% 5.0% Deposits by banks - 371 Discounted cash flows Credit spreads 0.2% - 3.5% 1.5% Customer accounts - 2,714 Internal pricing model Equity-Equity correlation 44.9% - 100% 80.0% Equity-FX correlation (36.4)% - 48.9% 5.0% Discounted cash flows Interest rate curves 1.4% - 4.4% 4.0% Price/yield 0.7% - 13.0% 8.5% Debt securities in issue - 1,414 Discounted cash flows Credit spreads 0.05% - 2.0% 0.8% Price/yield 6.2% - 14.8% 12.7% Interest rate curves 3.5% - 4.4% 4.1% Internal pricing model Equity-Equity correlation 44.9% - 100% 80.0% Equity-FX correlation (36.4)% - 48.9% 5.0% Option pricing model Bond option implied volatility 4.0% - 15% 12.5% Short positions - 180 Discounted cash flows Price/yield 5.9% - 12.7% 6.3% Total 8,053 4,937 1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group's Level 3 financial instruments at 31 December 2024. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group's Level 3 financial instruments 2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful indicator - page 87 - The following section describes the significant unobservable inputs identified in the valuation technique table: �� Comparable price/yield is a valuation methodology in which the price of a comparable instrument is used to estimate the fair value where there are no direct observable prices. Yield is the interest rate that is used to discount the future cash flows in a discounted cash flow model. Valuation using comparable instruments can be done by calculating an implied yield (or spread over a liquid benchmark) from the price of a comparable instrument, then adjusting that yield (or spread) to derive a value for the instrument. The adjustment should account for relevant differences in the financial instruments such as maturity and/or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable instrument and the instrument being valued in order to establish the value of the instrument (for example, deriving a fair value for a junior unsecured bond from the price of a senior secured bond). An increase in price, in isolation, would result in a favourable movement in the fair value of the asset. An increase in yield, in isolation, would result in an unfavourable movement in the fair value of the asset. �� Correlation is the measure of how movement in one variable influences the movement in another variable. An equity correlation is the correlation between two equity instruments while an interest rate correlation refers to the correlation between two swap rates, and commodity correlation is correlation between two commodity underlying prices. �� Commodity price curves is the term structure for forward rates over a specified period. �� Credit spread represents the additional yield that a market participant would demand for taking exposure to the Credit Risk of an instrument. �� Discount rate refers to the rate of return used to convert expected cash flows into present value. �� Equity-FX correlation is the correlation between equity instrument and foreign exchange instrument. �� EV/EBITDA multiple is the ratio of Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA). EV is the aggregate market capitalisation and debt minus the cash and cash equivalents. An increase in EV/EBITDA multiple will result in a favourable movement in the fair value of the unlisted firm. �� EV/Revenue multiple is the ratio of Enterprise Value (EV) to Revenue. An increase in EV/Revenue multiple will result in a favourable movement in the fair value of the unlisted firm. �� Foreign exchange curves is the term structure for forward rates and swap rates between currency pairs over a specified period. �� Net asset value (NAV) is the value of an entity's assets after deducting any liabilities. �� Interest rate curves is the term structure of interest rates and measures of future interest rates at a particular point in time. �� Liquidity discounts in the valuation of unlisted investments are primarily applied to the valuation of unlisted firms' investments to reflect the fact that these stocks are not actively traded. An increase in liquidity discount will result in an unfavourable movement in the fair value of the unlisted firm. �� Price-Earnings (P/E) multiple is the ratio of the market value of the equity to the net income after tax. An increase in P/E multiple will result in a favourable movement in the fair value of the unlisted firm. �� Price-Book (P/B) multiple is the ratio of the market value of equity to the book value of equity. An increase in P/B multiple will result in a favourable movement in the fair value of the unlisted firm. �� Price-Sales (P/S) multiple is the ratio of the market value of equity to sales. An increase in P/S multiple will result in a favourable movement in the fair value of the unlisted firm. �� Recovery rate is the expectation of the rate of return resulting from the liquidation of a particular loan. As the probability of default increases for a given instrument, the valuation of that instrument will increasingly reflect its expected recovery level assuming default. An increase in the recovery rate, in isolation, would result in a favourable movement in the fair value of the loan. �� Repo curve is the term structure of repo rates on repos and reverse repos at a particular point in time. �� Volatility represents an estimate of how much a particular instrument, parameter or index will change in value over time. Generally, the higher the volatility, the more expensive the option will be. - page 88 - Level 3 movement tables - financial assets The table below analyses movements in Level 3 financial assets carried at fair value. Assets Held at fair value through profit or loss Investment securities Loans and advances to banks $million Loans and advances to customers $million Reverse repurchase agreements and other similar secured lending $million Debt securities, alternative tier one and other eligible bills $million Equity shares $million Other Assets $million Derivative financial instruments $million Debt securities, alternative tier one and other eligible bills $million Equity shares $million Total $million At 1 January 2025 - 1,937 3,239 1,593 191 - 128 - 965 8,053 Total (losses)/gains recognised in income statement (2) 24 (66) (3) (18) - (9) - - (74) Net trading income (2) 24 (66) 53 (18) - (9) - - (18) Other operating income - - - (56) - - - - - (56) Total (losses)/gains recognised in other comprehensive income (OCI) - - - - - - - - 107 107 Fair value through OCI reserve - - - - - - - - 91 91 Exchange difference - - - - - - - - 16 16 Purchases 278 1,069 5,476 747 164 - 59 - 11 7,804 Sales - (668) (5,172) (651) (12) - (33) - (151) (6,687) Settlements (5) (78) (85) (6) - - (24) - - (198) Transfers out 1 - (269) - (32) (7) - (17) - (4) (329) Transfers in 2 - 323 - 234 - - - - 6 563 At 30 June 2025 271 2,338 3,392 1,882 318 - 104 - 934 9,239 Recognised in the income statement 3 - (8) (8) 1 (18) - 3 - - (30) At 1 January 2024 - 1,960 2,363 1,262 184 6 80 72 787 6,714 Total (losses)/gains recognised in income statement - (18) (85) 25 (1) (1) (36) - - (116) Net trading income - (18) (85) (6) 2 - (36) - - (143) Other operating income - - - 31 (3) (1) - - - 27 Total (losses)/gains recognised in other comprehensive income (OCI) - - - - - - - (13) (31) (44) Fair value through OCI reserve - - - - - - - - (18) (18) Exchange difference - - - - - - - (13) (13) (26) Purchases 18 2,538 2,725 468 3 - 166 13 37 5,968 Sales (2) (2,631) (2,199) (668) (3) (4) (114) - (18) (5,639) Settlements (7) (14) (329) - - - (15) - - (365) Transfers out (13) (155) (5) - - - (2) (72) (1) (248) Transfers in 40 255 140 - 6 - 38 - 1 480 At 30 June 2024 36 1,935 2,610 1,087 189 1 117 - 775 6,750 Recognised in the income statement 3 - 1 1 11 12 - (10) - - 15 1 Transfers out includes loans and advances, debt securities, alternative tier one and other eligible bills, equity shares and derivative financial instruments where the valuation parameters became observable during the period and were transferred to Level 1 and Level 2 2 Transfers in primarily relate to loans and advances, debt securities, alternative tier one and other eligible bills and equity shares where the valuation parameters become unobservable during the period 3 Represents total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of asset - page 89 - Level 3 movement tables - financial liabilities Deposits by banks $million Customer accounts $million Debt securities in issue $million Derivative financial instruments $million Short positions $million Other liabilities $million Total $million At 1 January 2025 371 2,714 1,414 258 180 - 4,937 Total losses/(gains) recognised in income statement - net trading income 65 10 56 8 (2) - 137 Issues 157 3,067 1,022 350 - - 4,596 Settlements (263) (1,316) (1,109) (387) (90) - (3,165) Transfers out 1 - (230) (39) (10) - - (279) Transfers in 2 - 41 4 5 - - 50 At 30 June 2025 330 4,286 1,348 224 88 - 6,276 Recognised in the income statement 3 1 3 5 2 - - 11 At 1 January 2024 334 1,278 1,041 196 103 8 2,960 Total losses/(gains) recognised in income statement - net trading income 37 (4) 16 (12) - (7) 30 Issues 218 1,427 2,334 240 - - 4,219 Settlements (190) (990) (1,127) (217) - - (2,524) Transfers out - (20) (162) (7) (103) - (292) Transfers in - 38 37 9 - - 84 At 30 June 2024 399 1,729 2,139 209 - 1 4,477 Recognised in the income statement 3 24 3 5 (4) - - 28 1 Transfers out during the period primarily relate to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters became observable during the period and were transferred to Level 2 financial liabilities 2 Transfers in during the period primarily relate to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters become unobservable during the period 3 Represents total unrealised losses/(gains) recognised in the income statement, within net trading income, relating to change in fair value of liabilities Sensitivities in respect of the fair values of Level 3 assets and liabilities Sensitivity analysis is performed on products with significant unobservable inputs. The Group applies a 10 per cent increase or decrease on the values of these unobservable inputs, to generate a range of reasonably possible alternative valuations. The percentage shift is determined by statistical analysis performed on a set of reference prices based on the composition of the Group's Level 3 inventory as the measurement date. Favourable and unfavourable changes (which show the balance adjusted for input change) are determined on the basis of changes in the value of the instrument as a result of varying the levels of the unobservable parameters. The Level 3 sensitivity analysis assumes a one-way market move and does not consider offsets for hedges. - page 90 - Held at fair value through profit or loss Fair value through other comprehensive income Net exposure $million Favourable changes $million Unfavourable changes $million Net exposure $million Favourable changes $million Unfavourable changes $million Financial instruments held at fair value Loans and advances 2,609 2,651 2,533 - - - Reverse repurchase agreements and other similar secured lending 3,392 3,491 3,300 - - - Debt securities, alternative tier one and other eligible bills 1,882 1,943 1,822 - - - Equity shares 318 349 287 934 1,027 841 Derivative financial instruments (120) (105) (135) - - - Customer accounts (4,286) (3,999) (4,556) - - - Deposits by banks (330) (326) (334) - - - Short positions (88) (87) (89) - - - Debt securities in issue (1,348) (1,262) (1,435) - - - At 30 June 2025 2,029 2,655 1,393 934 1,027 841 Financial instruments held at fair value Loans and advances 1,937 1,985 1,862 - - - Reverse repurchase agreements and other similar secured lending 3,239 3,339 3,138 - - - Debt securities, alternative tier one and other eligible bills 1,593 1,643 1,542 - - - Equity shares 191 210 172 965 1,032 888 Derivative financial instruments (130) (115) (147) - - - Customer accounts (2,714) (2,540) (2,883) - - - Deposits by banks (371) (371) (371) - - - Short positions (180) (178) (182) - - - Debt securities in issue (1,414) (1,352) (1,476) - - - At 31 December 2024 2,151 2,621 1,655 965 1,032 888 The reasonably possible alternatives could have increased or decreased the fair values of financial instruments held at fair value through profit or loss and those classified as fair value through other comprehensive income by the amounts disclosed below. Financial instruments Fair value changes Possible increase Possible decrease 30.06.25 $million 31.12.24 $million 30.06.25 $million 31.12.24 $million Held at fair value through profit or loss 626 470 (636) (496) Fair value through other comprehensive income 93 67 (93) (77) - page 91 - 14. Derivative financial instruments The tables below analyse the notional principal amounts and the positive and negative fair values of derivative financial instruments. Notional principal amounts are the amounts of principal underlying the contract at the reporting date. Derivatives 30.06.25 31.12.24 Notional principal amounts $million Assets $million Liabilities $million Notional principal amounts $million Assets $million Liabilities $million Foreign exchange derivative contracts: Forward foreign exchange contracts 5,638,429 45,632 46,062 4,923,991 54,913 51,128 Currency swaps and options 1,692,000 10,403 11,474 1,377,308 18,104 18,720 7,330,429 56,035 57,536 6,301,299 73,017 69,848 Interest rate derivative contracts: Swaps 7,739,177 19,019 20,160 6,267,261 20,600 22,282 Forward rate agreements and options 313,474 1,166 1,081 294,705 2,233 2,771 8,052,651 20,185 21,241 6,561,966 22,833 25,053 Exchange traded futures and options 508,822 25 39 383,528 30 27 Credit derivative contracts 224,896 292 2,804 227,675 397 2,320 Equity and stock index options 15,918 189 402 10,678 351 194 Commodity derivative contracts 197,517 1,761 1,761 142,393 1,274 1,052 Gross total derivatives 16,330,233 78,487 83,783 13,627,539 97,902 98,494 Offset - (14,262) (13,905) - (16,430) (16,430) Total derivatives 16,330,233 64,225 69,878 13,627,539 81,472 82,064 The Group limits exposure to credit losses in the event of default by entering into master netting agreements with certain market counterparties. As required by IAS 32, exposures are only presented net in these accounts where they are subject to legal right of offset and intended to be settled net in the ordinary course of business. The Group applies balance sheet offsetting only in the instance where we are able to demonstrate legal enforceability of the right to offset (e.g. via legal opinion) and the ability and intention to settle on a net basis (e.g. via operational practice). The Group may enter into economic hedges that do not qualify for IAS 39 hedge accounting treatment, including derivatives such as interest rate swaps, interest rate futures and cross currency swaps to manage interest rate and currency risks of the Group. These derivatives are measured at fair value, with fair value changes recognised in net trading income: refer to Market Risk. Derivatives held for hedging The Group enters into derivative contracts for the purpose of hedging interest rate, currency and structural foreign exchange risks inherent in assets, liabilities and forecast transactions. The table below summarises the notional principal amounts and carrying values of derivatives designated in hedge accounting relationships at the reporting date. Included in the table above are derivatives held for hedging purposes as follows: 30.06.25 31.12.24 Notional principal amounts $million Assets $million Liabilities $million Notional principal amounts $million Assets $million Liabilities $million Derivatives designated as fair value hedges: Interest rate swaps 65,172 828 1,232 63,840 763 1,679 Currency swaps 1,175 90 - 1,035 - 56 66,347 918 1,232 64,875 763 1,735 Derivatives designated as cash flow hedges: Interest rate swaps 52,796 334 65 49,309 165 282 Forward foreign exchange contracts 3,286 30 61 9,193 609 1 Currency swaps 9,348 71 215 14,305 729 2 65,430 435 341 72,807 1,503 285 Derivatives designated as net investment hedges: Forward foreign exchange contracts 18,558 59 419 14,137 300 7 Total derivatives held for hedging 150,335 1,412 1,992 151,819 2,566 2,027 - page 92 - 15. Reverse repurchase and repurchase agreements including other similar lending and borrowing Reverse repurchase agreements and other similar secured lending 30.06.25 $million 31.12.24 $million Banks 38,815 37,700 Customers 59,957 61,101 98,772 98,801 Of which: Fair value through profit or loss 90,333 86,195 Banks 34,565 34,754 Customers 55,768 51,441 Held at amortised cost 8,439 12,606 Banks 4,250 2,946 Customers 4,189 9,660 Under reverse repurchase and securities borrowing arrangements, the Group obtains securities under usual and customary terms which permit it to repledge or resell the securities to others. Amounts on such terms are: 30.06.25 $million 31.12.24 $million Securities and collateral received (at fair value) 101,219 103,007 Securities and collateral which can be repledged or sold (at fair value) 100,946 102,741 Amounts repledged/transferred to others for financing activities, to satisfy liabilities under sale and repurchase agreements (at fair value) 19,126 27,708 Repurchase agreements and other similar secured borrowing 30.06.25 $million 31.12.24 $million Banks 9,411 8,669 Customers 39,785 37,002 49,196 45,671 Of which: Fair value through profit or loss 43,946 33,539 Banks 8,617 7,759 Customers 35,329 25,780 Held at amortised cost 5,250 12,132 Banks 794 910 Customers 4,456 11,222 The tables below set out the financial assets provided as collateral for repurchase and other secured borrowing transactions: Collateral pledged against repurchase agreements Fair value through profit or loss $million Fair value through other comprehensive income $million Amortised cost $million Off-balance sheet $million Total $million On-balance sheet Debt securities and other eligible bills 5,559 12,118 14,062 - 31,739 Off-balance sheet Repledged collateral received - - - 19,126 19,126 At 30 June 2025 5,559 12,118 14,062 19,126 50,865 On-balance sheet Debt securities and other eligible bills 4,698 6,366 7,592 - 18,656 Off-balance sheet Repledged collateral received - - - 27,708 27,708 At 31 December 2024 4,698 6,366 7,592 27,708 46,364 The Group applies balance sheet offsetting only in the instance where we are able to demonstrate legal enforceability of the right to offset (e.g. via legal opinion) and the ability and intention to settle on a net basis (e.g. via operational practice). - page 93 - 16. Goodwill and intangible assets 30.06.25 31.12.24 Goodwill $million Acquired intangibles $million Computer software $million Total $million Goodwill $million Acquired intangibles $million Computer software $million Total $million Cost At 1 January 2,387 252 6,301 8,940 2,429 278 6,168 8,875 Exchange translation differences 75 15 249 339 (42) (18) (109) (169) Additions - - 451 451 - 1 952 953 Disposals - - (11) (11) - - (5) (5) Impairment - - (49) 1 (49) - - (663) 2 (663) Amounts written off - - (53) (53) - (9) (42) (51) At 30 June/31 December 2,462 267 6,888 9,617 2,387 252 6,301 8,940 Provision for amortisation At 1 January - 249 2,900 3,149 - 265 2,396 2,661 Exchange translation differences - 15 125 140 - (20) (48) (68) Amortisation - - 325 325 - 4 695 699 Impairment charge - - (31) 1 (31) - - (102) 2 (102) Disposal - - (4) (4) - - - - Amounts written off - - (53) (53) - - (41) (41) At 30 June/31 December - 264 3,262 3,526 - 249 2,900 3,149 Net book value 2,462 3 3,626 6,091 2,387 3 3,401 5,791 1 Includes impairment of software intangibles capitalised as at 31 December 2024 2 During 2024, the Group performed a review of its computer software intangibles which were capitalised as at 31 December 2023, and impaired $483 million of the 2024 net book value due to limitations in the available evidence to support the continued capitalisation of the assets. The Group has made improvements in its processes and controls to capture the required evidence going forward. The Group has also performed its annual review of computer software intangibles to determine instances when the Group is no longer using certain applications in its ongoing business and impaired $78 million. A total of $561 million is recorded within impairment to reflect the above At 30 June 2025, accumulated goodwill impairment losses incurred from 1 January 2005 amounted to $3,331 million (31 December 2024: $3,331 million), of which nil was recognised on 30 June 2025 (31 December 2024: $ nil). The Group assessed the goodwill assigned to each of the Group's cash-generating units (CGUs) and determined that there are no indicators of impairment for material CGUs at 30 June 2025. 17. Property, plant and equipment 30.06.25 31.12.24 Premises $million Equipment $million Leased premises assets $million Leased equipment assets $million Total $million Premises $million Equipment $million Leased premises assets $million Leased equipment assets $million Total $million Cost and valuation At 1 January 2024 1,726 936 2,026 163 4,851 1,741 810 1,864 18 4,433 Exchange translation differences 53 23 50 1 127 (41) (31) (38) (4) (114) Additions 78 47 132 5 262 112 194 213 150 669 Disposals and fully depreciated assets written off (7) (12) (27) (1) (47) (61) (37) (13) (1) (112) Transfers to assets held for sale (17) - 1 - (16) - - - - Other movements (3) - - - (3) (25) - - - (25) At 30 June/31 December 1,830 994 2,182 168 5,174 1,726 936 2,026 163 4,851 Depreciation Accumulated at 1 January 716 575 1,096 39 2,426 692 535 914 18 2,159 Exchange translation differences 21 21 19 1 62 (28) (15) (40) (14) (97) Charge for the year 41 51 112 15 219 79 92 220 36 427 Impairment charge (1) - 1 - - 2 - 9 - 11 Attributable to assets sold, transferred or written off (4) (12) (18) (1) (35) (29) (37) (7) (1) (74) Transfers to assets held for sale (4) - - - (4) - - - - - At 30 June/31 December 769 635 1,210 54 2,668 716 575 1,096 39 2,426 Net book value 1,061 359 972 114 2,506 1,010 361 930 124 2,425 - page 94 - 18. Other assets Other assets include: 30.06.25 $million 31.12.24 $million Financial assets held at amortised cost (Note 13): Hong Kong SAR Government certificates of indebtedness (Note 21)�� 6,360 6,369 Cash collateral 2 13,895 11,046 Acceptances and endorsements 4,921 5,476 Unsettled trades and other financial assets 20,196 11,694 45,372 34,585 Non-financial assets: Commodities and emissions certificates 3 19,366 8,358 Other assets 691 525 65,429 43,468 1 The Hong Kong SAR Government certificates of indebtedness are subordinated to the claims of other parties in respect of bank notes issued 2 Cash collateral are margins placed to collateralise net derivative mark-to-market positions 3 Comprises precious metals and emission certificates, being inventory that is carried at fair value less costs to sell. $16.6 billion is precious metals which are classified as Level 1, the fair value of which being derived from observable spot or short-term futures prices from relevant exchanges (31 December 2024: $5.6 billion). $2.7 billion is emissions certificates and other commodity related balances classified as Level 2 (31 December 2024: $2.7 billion) 19. Investments in associates and joint ventures Share of profit from investment in associates and joint ventures comprises: 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Loss from investment in joint ventures (7) (3) Profit from investment in associates 86 147 Total 79 144 Interests in associates and joint ventures 30.06.25 $million 31.12.24 $million At 1 January 1,020 966 Exchange translation difference 22 (40) Additions 1 361 22 Share of profits 79 108 Dividend received 2 (45) (36) Share of fair value through other comprehensive income (FVOCI) and Other reserves (30) 9 Other movements (2) (9) At 30 June/31 December 1,405 1,020 1 Includes investment in Jumbotail Technologies Private Limited. Refer to Note 6 Other operating income 2 Includes capital distribution from Ascenta IV The Group's principal associates are: Associate Nature of activities Main areas of operation Group interest in associate % China Bohai Bank Banking China 16.26 Jumbotail Technologies Pvt. Ltd E-commerce India 46.55 Jumbotail Technologies Private Ltd (JTPL) On acquisition through the SCRTIPL transaction (refer to Note 6), the Group acquired a 46.55 per cent shareholding in JTPL, a company incorporated in India; these shares give the Group 46.64 per cent voting rights in JTPL. The carrying value as of 30 June 2025 was $344 million. JTPL is engaged in business-to-business e-commerce. As a result of the acquisition, the Group has significant influence over the investee through its shareholding and accounts for its interest based on the application of the equity method. The Group's share of the associate's results since acquisition are immaterial. China Bohai Bank The Group's ownership percentage in China Bohai Bank is 16.26 per cent. Although the Group's investment in China Bohai Bank is less than 20 per cent, it is an associate because of the significant influence the Group can exercise over its management and financial and operating policies. This influence is exercised through Board representation and the provision of technical expertise to Bohai. The Group applies the equity method of accounting for investments in associates. - page 95 - If the Group did not have significant influence over Bohai, the investment would be measured at fair value rather than the current carrying value, which is based on the application of the equity method as described in the accounting policy note. Bohai publishes their results after the Group. As it is impracticable for Bohai to prepare financial statements sooner, the Group recognises its share of Bohai's earnings on a three-month lag basis. Therefore, the Group recognised its share of Bohai's profits and movements in other comprehensive income from 1 October 2024 through 31 March 2025 (six months of earnings) in the Group's consolidated statement of income and consolidated statement of comprehensive income for the period ended 30 June 2025, also considering any known changes or events in the subsequent period from 1 April 2025 to 30 June 2025 that would have materially affected Bohai's results. Impairment testing On 30 June 2025, the listed equity value of Bohai is below the carrying amount of the Group's investment in associate. As a result, the Group assessed the carrying value of its investment in Bohai for impairment and concluded that no impairment was required for the period ended 30 June 2025 ($nil for the period ended 30 June 2024; $1,459 million of accumulated impairment at 30 June 2025). The Group has not reversed any previously recognised impairments during the period (2024: $nil). The carrying amount of the Group's investment in Bohai of $834 million (2024: $738 million) is supported with the higher of the value in use (VIU) and fair value less costs of disposal, i.e. the recoverable amount. The increase to the carrying amount during 2025 reflects the Group's share of profits of $103 million, other comprehensive loss of $30 million, net of foreign exchange profits of $23 million and dividends received of $nil. The financial forecasts used to estimate the recoverable amount, a VIU calculation, reflects Group management's best estimate of Bohai's future earnings, in line with current economic conditions and Bohai's latest reported results. Bohai 30.06.25 $million 31.12.24 $million VIU 834 738 Carrying amount 1 834 738 Market capitalisation 2 320 338 1 The Group's 16.26 per cent share in the net assets less other equity instruments which the Group does not hold 2 Number of shares held by the Group multiplied by the quoted share price at period end Basis of recoverable amount The impairment test was performed by comparing the recoverable amount of Bohai, determined as the higher of VIU and fair value less costs to dispose, with its carrying amount. The VIU is calculated using a dividend discount model (DDM), which estimates the distributable future cash flows to the equity holders, after adjusting for regulatory capital requirements, for a five-year period, after which a terminal value (TV) is calculated based on the price to earnings (P/E) exit multiple. The key assumptions in the VIU are as follows: �� Short-to-medium term projections are based on Group management's best estimates of future profits available to ordinary shareholders and have been determined with reference to the latest published financial results, the historical performance of Bohai and forward-looking macroeconomic variables for Mainland China. �� The projections use available information and include normalised performance over the forecast period, inclusive of: (i) balance sheet growth assumptions based on the short-to-medium term GDP growth rates for Mainland China; (ii) net interest income (NII) projecting interest income (primarily the one-year Loan Prime Rate (LPR), one-year LPR, as basis) and interest expense (Shanghai Interbank Offered Rate, three-month SHIBOR, as basis) which reference to forecast third-party market interest rates plus/minus an observed historical spread to the benchmark rate; (iii) non-interest income estimated according to the latest available performance of Bohai, with consideration of the contribution of the constituent parts of the non-interest income; (iv) expected credit loss (ECL) assumptions using Bohai's historical reported ECL, based on the proportion of ECL from loans and advances to customers and financial investments measured at amortised cost and FVOCI; and (v) statutory tax rate of 25 per cent was applied to the taxable profit of Bohai, after consideration of taxable and non-taxable elements, consistent with historical reported results. - page 96 - �� The distributable reserves under the DDM are calculated as the difference between the capital resources and the capital requirements in each of the forecast periods. The calculation assumes a target Common Equity Tier 1 (CET 1) capital ratio and risk-weighted asset (RWA) growth consistent with total assets. �� The discount rate applied to these cash flows was estimated with reference to a capital asset pricing model (CAPM), which includes a long-term risk-free rate, beta, and company risk premium assumptions for Bohai. �� A long-term average P/E multiple of comparable companies is used to derive a TV after the five-year forecast period. The VIU model was refined during 2025 to include more granular forecasting assumptions for each period. While it is impracticable for the Group to estimate the impact on future periods, the key changes to the 2025 model are summarised as follows: �� The Group continues to calculate non-interest income with reference to the five components, i.e., net gains on financial investments through P/L, net gains on financial investments through OCI, net fee and commission income, net trading income, and other income. All components of non-interest income continue to be grown by the relevant GDP rate for Mainland China over the forecast period. However, the Group changed the returns forecast for the financial investments through P/L over the forecast period, by using the most recent reported returns as the starting point, normalising such returns to a long-term average over the forecast period. Previously, the return of this component of non-interest income was normalised to the long-term average from the start of the forecast period (year 1), and then grown according to relevant GDP rate of Mainland China. As a result of this change, the year 1 total forecast non-interest income is more aligned to the recently reported results, but due to the normalisation affect, the implied growth is negligible. The key assumptions used for the VIU calculation: 30.06.25 31.12.24 Post-tax discount rate1 10.00% 10.50% Total balance sheet (and risk-weighted assets) growth rate 3.53% - 4.75% 3.77% - 4.52% P/E multiple used to calculate TV 5.6x 5.6x Interest income2 2.94% - 3.20% 3.00%-3.56% Interest expense2 1.65% - 2.07% 1.77%-2.01% Non-interest income - financial investments return 1.91%-2.98% 1.91% Other non-interest income growth rate 3.53% - 4.75% 3.77%-4.52% Expected credit losses as a percentage of customer loans3 0.77% 0.84%-1.36% Expected credit losses as a percentage of financial investments measured at amortised cost and FVOCI3 0.39% 0.48%-1.26% Tax expense4 9.68% - 13.83% 5.4% - 14.1% Capital maintenance ratio 8.00% 8.00% 1 Pre-tax discount rate of 15.37 per cent was used in 2025 (2024: 15.31 per cent). The difference in pre-tax discount rates relates to changes in effective tax rate 2 One-year LPR and three-month SHIBOR rate forecasts were sourced from an external third-party provider, and with a spread derived from long-term historical averages, are used to produce the interest income and interest expense forecasts 3 As 31 December 2024 the low end of the range was based on historical loss rates, and the high end of the range, applied in one of the forecast years, included adjustments for incremental judgemental management overlays. At 30 June 2025 the ECL assumption is based on historical loss rates with an adjustment for incremental judgemental management overlays, applied over the five-year forecast period 4 The tax rates disclosed are the implied effective tax rates (per cent) over the five-yr forecast period. The 30 June 2025 tax expense forecasts, calculated from the taxable profit, considered the long-term historical average of non-taxable income of 17.22 per cent ( 2024: 16.09 per cent) and non-deductible expenses of 14.43 per cent (2024: 12.53 per cent). A statutory tax rate of 25 per cent was applied to the taxable profit of Bohai, after consideration of taxable and non-taxable elements - page 97 - The table below discloses sensitivities to the key assumptions of Bohai, according to management's judgement of reasonably possible changes. Changes were applied to every cash flow year on an individual basis. The percentage change to the assumptions reflects the level at which management assesses the reasonableness of the assumptions used and their impact on the carrying amount. Sensitivities1 basis points Key assumption increase Key assumption decrease Increase/(decrease) in VIU $million Increase/(decrease) in VIU $million Discount rate 100 (31) 33 Total balance sheet (and risk-weighted asset) growth rate2 100 - 1 P/E multiple used to calculate TV 1.0x 110 (109) Net interest income - Scenario 13 10 (10) 10 Net interest income - Scenario 24 Various4 356 (229) Non-interest income - financial investments return 100 242 (241) Other non-interest income growth rate 100 27 (25) Expected credit losses as a percentage of customer loans 10 (138) 138 Expected credit losses as a percentage of financial investments measured at amortised cost and FVOCI 10 (78) 78 Tax expense5 300 24 (24) Capital maintenance ratio 50 (86) 86 1 For comparative information as of 31 December 2024, refer to page 365 of the Group's Annual Report 2024 2 The sensitivity reflects the net impact of changing this assumption in the VIU, which links to various elements in forecast profit and regulatory capital adjustment 3 This scenario assumes that one-year LPR and three-month SHIBOR increase or decrease by the same amount, to demonstrate the impact on the carrying amount of a similar scenario 4 An alternative scenario is that Bohai's asset yield and liability cost move in the same direction, albeit by different amounts, through the five-year forecast period including the terminal value. The key assumption increase sensitivity assumes that asset yields increase by 25 basis points and liability costs increase by 10 basis points in each period. The key assumption decrease sensitivity assumes that asset yields decrease by 25 basis points and liability costs decrease by 15 basis points in each period 5 Changes in tax expense applied only to both average percentages of non-taxable income (17.22 per cent) and non-deductible expenses (14.43 per cent). Refer to footnote 4 of the key assumptions table for more details The following table sets out the summarised financial statements of China Bohai Bank prior to the Group's share of the associate's profit being applied: 31.03.25 $million 31.03.24 $million Total assets 249,471 243,892 Total liabilities 233,876 227,393 Operating income 1 1,865 1,862 Net profit 1 496 441 Other comprehensive income 1 (189) 49 1 This represents six months of earnings (1 October to 31 March) 20. Assets held for sale and associated liabilities Assets held for sale The financial assets reported below are classified under Level 1 $15 million (31 December 2024: $58 million), Level 2 $491 million (31 December 2024: $353 million) and Level 3 $116 million (31 December 2024: $473 million). 30.06.25 $million 31.12.24 $million Financial assets held at fair value through profit or loss 1 5 Loans and advances to banks - 5 Equity shares 1 - Financial assets held at amortised cost 622 884 Cash and balances at central banks 73 109 Loans and advances to banks 19 18 Loans and advances to customers 460 6561 Debt securities held at amortised cost 70 101 Property, plant and equipment 28 15 Other assets 30 28 681 932 1 Includes $414 million unsecured personal loan business from SC Bank India which was disposed on 23 January 2025 - page 98 - Liabilities held for sale The financial liabilities reported below are classified under Level 1 Nil (31 December 2024: $89 million) and Level 2 $194 million (31 December 2024: $271 million). 30.06.25 $million 31.12.24 $million Financial liabilities held at amortised cost 194 360 Customer accounts 194 360 Other liabilities 16 16 Provisions for liabilities and charges 5 5 215 381 21. Other liabilities 30.06.25 $million 31.12.24 $million Financial liabilities held at amortised cost (Note 13) Notes in circulation 1 6,360 6,369 Acceptances and endorsements 4,926 5,476 Cash collateral 2 12,831 15,005 Property leases 1,089 1,041 Equipment leases 110 115 Unsettled trades and other financial liabilities 22,605 16,041 47,921 44,047 Non-financial liabilities Cash-settled share-based payments 156 131 Other liabilities 561 503 48,638 44,681 1 Hong Kong currency notes in circulation of $6,360 million (31 December 2024: $6,369 million) that are secured by the Government of Hong Kong SAR certificates of indebtedness of the same amount included in other assets (Note 18) 2 Cash collateral includes margins received against collateralise net derivative mark-to-market positions 22. Contingent liabilities and commitments The table below shows the contract or underlying principal amounts of unmatured off-balance sheet transactions at the balance sheet date. The contract or underlying principal amounts indicate the volume of business outstanding and do not represent amounts at risk. 30.06.25 $million 31.12.24 $million Financial guarantees and other contingent liabilities Financial guarantees, trade and irrevocable letters of credit 103,959 90,632 103,959 90,632 Commitments Undrawn formal standby facilities, credit lines and other commitments to lend One year and over 84,525 76,915 Less than one year 31,187 29,249 Unconditionally cancellable 77,235 76,365 192,947 182,529 Capital commitments Contracted capital expenditure approved by the directors but not provided for in these accounts 105 123 As set out in Note 23, the Group has contingent liabilities in respect of certain legal and regulatory matters. - page 99 - 23. Legal and regulatory matters The Group receives legal claims against it in a number of jurisdictions and is subject to regulatory and enforcement investigations and proceedings from time to time. Apart from the matters described below, the Group currently considers none of the ongoing claims, investigations or proceedings to be individually material. However, in light of the uncertainties involved in such matters, there can be no assurance that the outcome of a particular matter or matters currently not considered to be material may not ultimately be material to the Group's results in a particular reporting period depending on, among other things, the amount of the loss resulting from the matter(s) and the results otherwise reported for such period. Since 2014, the Group has been named as a defendant in a series of lawsuits that have been filed in the United States District Courts for the Southern and Eastern Districts of New York against a number of banks on behalf of plaintiffs who are, or are relatives of, victims of attacks in Iraq, Afghanistan and Israel. The plaintiffs in each of these lawsuits have alleged that the defendant banks aided and abetted the unlawful conduct of parties with connections to terrorist organisations in breach of the United States Anti-Terrorism Act. None of these lawsuits specify the amount of damages claimed. The Group continues to defend these lawsuits. In January 2020, a shareholder derivative complaint was filed by the City of Philadelphia in New York State Court against 45current and former directors and senior officers of the Group. It is alleged that the individuals breached their duties to the Group and caused a waste of corporate assets by permitting the conduct that gave rise to the costs and losses to the Group related to legacy conduct and control issues. In February 2022, the New York State Court ruled in favour of Standard Chartered PLC's motion to dismiss the complaint. The plaintiffs are pursuing an appeal against the February 2022 ruling. A hearing date for the plaintiffs' appeal is awaited. Since October 2020, four lawsuits have been filed in the English High Court against Standard Chartered PLC on behalf of more than 200 shareholders in relation to alleged untrue and/or misleading statements and/or omissions in information published by Standard Chartered PLC in its rights issue prospectuses of 2008, 2010 and 2015 and/or public statements regarding the Group's historic sanctions, money laundering and financial crime compliance issues. These lawsuits have been brought under sections 90 and 90A of the Financial Services and Markets Act 2000. The trial of these lawsuits is due to start in late 2026. The claimants have alleged that their losses are in the region of ��1.56 billion (excluding any pre-judgement interest that may be awarded). In addition to having denied any and all liability, Standard Chartered PLC will contest claimants' alleged losses. Bernard Madoff's 2008 confession to running a Ponzi scheme through Bernard L. Madoff Investment Securities LLC (BMIS) gave rise to a number of lawsuits against the Group. BMIS and the Fairfield funds (which invested in BMIS) are in bankruptcy and liquidation, respectively. Between 2010 and 2012, five lawsuits were brought against the Group by the BMIS bankruptcy trustee and the Fairfield funds' liquidators, in each case seeking to recover funds paid to the Group's clients pursuant to redemption requests made prior to BMIS' bankruptcy filing. The total amount sought in these cases exceeds $300 million, excluding any pre-judgement interest that may be awarded. Three of the four lawsuits commenced by the Fairfield funds' liquidators have been dismissed and the appeals of those dismissals by the funds' liquidators are ongoing. The fourth lawsuit has been dismissed and is not the subject of any further appeal. The Group continues to defend the lawsuit brought by the BMIS bankruptcy trustee. A number of Korean banks, including Standard Chartered Bank Korea, sold equity-linked securities (ELS) to customers, the redemption values of which are determined by the performance of various stock indices. From January 2021 to May 2023 Standard Chartered Bank Korea sold relevant ELS to its customers with a notional value of approximately $900 million. Due to the performance of the Hang Seng China Enterprise Index, several thousand Standard Chartered Bank Korea customers have redeemed their ELS at a loss. Standard Chartered Bank Korea has offered compensation to impacted customers. Standard Chartered Bank Korea may also receive a regulatory penalty. A $100 million provision had been recognised at Q1 2024 with respect to anticipated losses, $24 million of which remains recorded on the Group's balance sheet at 30 June 2025. In June 2025, a lawsuit was filed in the Singapore High Court against Standard Chartered Bank (Singapore) Limited, by three companies now in liquidation that had misappropriated funds from 1Malaysia Development Berhad (1MDB), seeking $2.7 billion. The companies allege, among other things, that Standard Chartered Singapore knew or ought to have known that these companies were engaged in the fraud on 1MDB at the time that Standard Chartered Singapore effected transfers instructed by these companies. The companies allege that in doing so, Standard Chartered Singapore breached its mandate and applicable duties. Standard Chartered Singapore had reported the transaction activities of these companies before it closed their accounts in early 2013. Standard Chartered denies any and all liability and will defend against this lawsuit. - page 100 - With the exception of the Korea ELS matter described above and certain other legal and regulatory matters for which provisions are recorded on the condensed consolidated interim balance sheet under Provisions for liabilities and charges as at 30 June 2025, the Group has concluded that the threshold for recording provisions pursuant to IAS 37 Provisions, Contingent Liabilities and Contingent Assets is not met with respect to the above matters; however, the outcomes of these matters are inherently uncertain and difficult to predict. 24. Subordinated liabilities and other borrowed funds 30.06.25 31.12.24 USD $million EUR $million GBP $million NPR $million Total $million USD $million EUR $million GBP $million NPR $million Total $million Fixed rate subordinated debt 6,685 1,142 934 17 8,778 7,510 2,008 846 18 10,382 Redemptions and repurchases during the period 2025 Standard Chartered PLC exercised its right to redeem $1 billion 3.516 per cent fixed rate reset subordinated debt due 2030 and EUR 1 billion 2.5 per cent fixed rate reset subordinated notes due 2030. Redemptions and repurchases during the year 2024 Standard Chartered PLC exercised its right to redeem $1 billion 5.2 per cent subordinated notes 2024 and ��500 million 3.125 per cent subordinated notes 2024. Issuance during the period 2025 There was no issuance during the period. Issuance during the year 2024 There was no issuance during the year. 25. Share capital, other equity instruments and reserves Number of ordinary shares millions Ordinary share capital 1 $million Ordinary share premium $million Preference share capital and share premium 2 $million Total share capital and share premium $million Other equity instruments $million At 1 January 2024 2,665 1,332 3,989 1,494 6,815 5,512 Cancellation of shares including share buyback (113) (57) - - (57) - Additional Tier 1 equity issuance - - - - - 992 At 30 June 2024 2,552 1,275 3,989 1,494 6,758 6,504 Cancellation of shares including share buyback (127) (63) - - (63) - Additional Tier 1 equity issuance - - - - - 576 Additional Tier 1 redemption - - - - - (553) Other movements 3 - - - - - (25) At 31 December 2024 2,425 1,212 3,989 1,494 6,695 6,502 Cancellation of shares including share buyback (93) (47) - - (47) - Additional Tier 1 equity issuance - - - - - 994 Other movements4 - - - - - 4 At 30 June 2025 2,332 1,165 3,989 1,494 6,648 7,500 1 Issued and fully paid ordinary shares of 50 cents each 2 Includes preference share capital of $75,000 3 Relates to realised translation loss on redemption of AT1 securities of SGD 750 million 4 Includes issuance cost - page 101 - Share buybacks On 21 February 2025, the Group announced the buyback programme for a $1,500 million share buyback of its ordinary shares of $0.50 each. At H1 2025, the total number of shares purchased of 82,248,452 representing 3.41 per cent of the ordinary shares in issue at the beginning of the programme, for total consideration of $1,222 million, and a further $278 million relating to irrevocable obligation to buy back shares under the buyback programme has been recognised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account. The shares were purchased by Standard Chartered PLC on various exchanges not including the Hong Kong Stock Exchange. Number of ordinary shares Highest price paid �� Lowest price paid �� Average price paid per share �� Aggregate price paid �� Aggregate price paid $ January 2025 11,300,128 10.870 9.704 10.4133 117,671,362 145,286,293 February 2025 3,395,890 12.725 11.790 12.3236 41,849,427 52,884,831 March 2025 24,636,534 12.810 11.175 11.8745 292,546,496 377,784,647 April 2025 19,971,649 11.545 8.728 10.1018 201,750,555 264,351,775 May 2025 18,340,963 11.755 10.385 11.2137 205,669,905 274,781,456 June 2025 15,903,416 12.200 11.160 11.6973 186,026,636 252,365,331 Ordinary share capital In accordance with the Companies Act 2006, the Company does not have authorised share capital. The nominal value of each ordinary share is 50 cents. During the period nil shares were issued under employee share plans. Preference share capital At 30 June 2025, the Company has 15,000 $5 non-cumulative redeemable preference shares in issue, with a premium of $99,995 making a paid-up amount per preference share of $100,000. The preference shares are redeemable at the option of the Company and are classified in equity. The available profits of the Company are distributed to the holders of the issued preference shares in priority to payments made to holders of the ordinary shares and in priority to, or pari passu with, any payments to the holders of any other class of shares in issue. On a winding up, the assets of the Company are applied to the holders of the preference shares in priority to any payment to the ordinary shareholders and in priority to, or pari passu with, the holders of any other shares in issue, for an amount equal to any dividends payable (on approval of the Board) and the nominal value of the shares together with any premium as determined by the Board. The redeemable preference shares are redeemable at the paid-up amount (which includes premium) at the option of the Company in accordance with the terms of the shares. The holders of the preference shares are not entitled to attend or vote at any general meeting, except where any relevant dividend due is not paid in full or where a resolution is proposed varying the rights of the preference shares. Other equity instruments The table provides details of outstanding Fixed Rate Resetting Perpetual Subordinated Contingent Convertible AT1 securities issued by Standard Chartered PLC. All issuances are made for general business purposes and to increase the regulatory capital base of the Group. Issuance date Nominal value Proceeds net of issue costs Interest rate 1 Coupon payment dates 2 First reset dates 3 Conversion price per ordinary share 5 26 June 2020 $1,000 million $992 million 6% 26 January, 26 July 26 January 2026 $5.331 14 January 2021 $1,250 million $1,239 million 4.75% 14 January, 14 July 14 July 2031 $6.353 19 August 2021 $1,500 million $1,489 million 4.30% 19 February, 19 August 19 August 2028 $6.382 15 August 2022 $1,250 million $1,239 million 7.75% 15 February, 15 August 15 February 2028 $7.333 08 March 2024 $1,000 million $993 million 7.875% 8 March, 8 September 8 September 2030 $8.216 19 September 2024 SGD750 million $579 million 5.300% 19 March, 19 September 19 March 2030 SGD12.929 16 January 2025 $1,000 million $994 million 7.625% 16 January, 16 July 16 July 2032 $12.330 Total $7,5254 million 1 Interest rates for the period from (and including) the issue date to (but excluding) the first reset date 2 Interest payable semi-annually in arrears 3 Securities are resettable each date falling five years, or an integral multiple of five years, after the first reset date 4 Excludes realised translation loss ($25 million) on redemption of AT1 securities on 3 October 2024 (SGD 750 million) 5 Conversion price set at the time of pricing with reference to closing share price and any applicable discount - page 102 - The AT1 issuances above are primarily purchased by institutional investors. The principal terms of the AT1 securities are described below: �� The securities are perpetual and redeemable, at the option of Standard Chartered PLC in whole but not in part, on the first interest reset date and each date falling five years after the first reset date. �� The securities are also redeemable for certain regulatory or tax reasons on any date at 100 per cent of their principal amount together with any accrued but unpaid interest up to (but excluding) the date fixed for redemption. Any redemption is subject to Standard Chartered PLC giving notice to the relevant regulator and the regulator granting permission to redeem. �� Interest payments on these securities will be accounted for as a dividend. �� Interest on the securities is due and payable only at the sole and absolute discretion of Standard Chartered PLC, subject to certain additional restrictions set out in the terms and conditions. Accordingly, Standard Chartered PLC may at any time elect to cancel any interest payment (or part thereof) which would otherwise be payable on any interest payment date. �� The securities convert into ordinary shares of Standard Chartered PLC, at a predetermined price detailed in the table above, should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. Approximately 1,051 million ordinary shares would be required to satisfy the conversion of all the securities mentioned above. The securities rank behind the claims against Standard Chartered PLC of (a) unsubordinated creditors, (b) which are expressed to be subordinated to the claims of unsubordinated creditors of Standard Chartered PLC but not further or otherwise; or (c) which are, or are expressed to be, junior to the claims of other creditors of Standard Chartered PLC, whether subordinated or unsubordinated, other than claims which rank, or are expressed to rank, pari passu with, or junior to, the claims of holders of the AT1 securities in a winding-up occurring prior to the conversion trigger. The net proceeds of the issuances of AT1s are used for the general purposes of the Group. Reserves The constituents of the reserves are summarised as follows: �� The capital reserve represents the exchange difference on redenomination of share capital and share premium from sterling to US dollars in 2001. The capital redemption reserve represents the nominal value of preference shares redeemed. �� The amounts in the Capital and Merger Reserve represent the premium arising on shares issued using a cash box financing structure, which required the Company to create a merger reserve under section 612 of the Companies Act 2006. Shares were issued using this structure in 2005 and 2006 to assist in the funding of Korea ($1.9 billion) and Taiwan ($1.2 billion) acquisitions, in 2008, 2010 and 2015 for the shares issued by way of a rights issue, primarily for capital maintenance requirements and for the shares issued in 2009 by way of an accelerated book build, the proceeds of which were used in the ordinary course of business of the Group. The funding raised by the 2008, 2010 and 2015 rights issues and 2009 share issue was fully retained within the Company. Of the 2015 funding, $1.5 billion was used to subscribe to additional equity in Standard Chartered Bank, a wholly owned subsidiary of the Company. Apart from the Korea, Taiwan and Standard Chartered Bank funding, the merger reserve is considered realised and distributable. �� Own credit adjustment (OCA) reserve represents the cumulative gains and losses on financial liabilities designated at fair value through profit or loss relating to own credit. Gains and losses on financial liabilities designated at fair value through profit or loss relating to own credit in the year have been taken through other comprehensive income into this reserve. On derecognition of applicable instruments the balance of any OCA will not be recycled to the income statement, but will be transferred within equity to retained earnings. �� Fair value through other comprehensive income (FVOCI) debt reserve represents the unrealised fair value gains and losses in respect of financial assets classified as FVOCI, net of expected credit losses and taxation. Gains and losses are deferred in this reserve and are reclassified to the income statement when the underlying asset is sold, matures or becomes impaired. �� FVOCI equity reserve represents unrealised fair value gains and losses in respect of financial assets classified as FVOCI, net of taxation. Gains and losses are recorded in this reserve and never recycled to the income statement �� Cash flow hedge reserve represents the effective portion of the gains and losses on derivatives that meet the criteria for these types of hedges. Gains and losses are deferred in this reserve and are reclassified to the income statement when the underlying hedged item affects profit and loss or when a forecast transaction is no longer expected to occur. - page 103 - �� Translation reserve represents the cumulative foreign exchange gains and losses on translation of the net investment of the Group in foreign operations. Since 1 January 2004, gains and losses are deferred to this reserve and are reclassified to the income statement when the underlying foreign operation is disposed. Gains and losses arising from derivatives used as hedges of net investments are netted against the foreign exchange gains and losses on translation of the net investment of the foreign operations. �� Retained earnings represents profits and other comprehensive income earned by the Group and Company in the current and prior periods, together with the after tax increase relating to equity-settled share options, less dividend distributions, own shares held (treasury shares) and share buybacks. A substantial part of the Group's reserves is held in overseas subsidiary undertakings and branches, principally to support local operations or to comply with local regulations. The maintenance of local regulatory capital ratios could potentially restrict the amount of reserves which can be remitted. In addition, if these overseas reserves were to be remitted, further unprovided taxation liabilities might arise. As at 30 June 2025, the distributable reserves of Standard Chartered PLC (the Company) were $13.9 billion (31 December 2024: $14.1 billion). Distributable reserves of SC PLC are calculated from the Merger reserve and Retained Earnings with consideration for restricted items in line with sections 830 and 831 of the Companies Act 2006. Own shares The 2004 Employee Benefit Trust (2004 Trust) is used in conjunction with the Group's employee share schemes and other employee share-based payments (such as upfront shares and salary shares). Computershare Trustees (Jersey) Limited is the trustee of the 2004 Trust. Group companies fund the 2004 Trust from time to time to enable the trustee to acquire ordinary shares in Standard Chartered PLC to satisfy these arrangements. Details of the shares purchased and held by the 2004 Trust are set out below. 2004 Trust 30.06.25 31.12.24 30.06.24 Shares purchased during the period 8,765,965 19,604,557 40,707 Market price of shares purchased ($million) 137.45 223 0.35 Shares held at the end of the period 1,799,177 17,589,987 1,863,677 Maximum number of shares held during the period 25,082,882 28,085,688 28,085,688 Except as disclosed, neither the Company nor any of its subsidiaries has bought, sold or redeemed any securities of the Company listed on The Stock Exchange of Hong Kong Limited during the period. Dividend waivers The trustees of the 2004 Trust, which holds ordinary shares in Standard Chartered PLC in connection with the operation of its employee share plans, waive any dividend on the balance of ordinary shares that have not been allocated to employees, except for 0.01p per share. 26. Related party transactions Directors and officers As at 30 June 2025, Standard Chartered Bank had in place a charge over $67 million (31 December 2024: $68 million) of cash assets in favour of the independent trustee of its employer financed retirement benefit scheme. There were no changes in the related party transactions described in the Annual Report 2024 that could have or have had a material effect on the financial position or performance of the Group in the period ended 30 June 2025. All related party transactions that have taken place in the period were similar in nature to those disclosed in the Annual Report 2024. Associate and joint ventures The following transactions with related parties are on an arm's length basis: 30.06.25 $million 31.12.24 $million Assets Derivative assets 9 5 Total assets 9 5 Liabilities Deposits 380 209 Derivative liabilities 3 4 Total liabilities 383 213 Loan commitments and other guarantees�� 108 14 1 The maximum loan commitments and other guarantees during the period were $108 million (31 December 2024: $14 million) - page 104 - 27. Post balance sheet events A share buyback for up to a maximum consideration of $1.3 billion has been declared by the directors after 30 June 2025. This will reduce the number of ordinary shares in issue by cancelling the repurchased shares. The Board has recommended an interim ordinary dividend for the half year 2025 of 12.3 cents a share or $288 million. On 26 July 2025, Standard Chartered PLC redeemed its $1.0 billion 6.00% Resetting Perpetual Subordinated Contingent Convertible Securities in full at 100 per cent. of their principal amount together with any accrued interest. 28. Corporate governance The directors confirm that, throughout the period, the Company has complied with the code provisions set out in the Corporate Governance Code contained in Appendix C1 of the Hong Kong Listing Rules. The directors also confirm that the announcement of these results has been reviewed by the Company's Audit Committee. The Company confirms that it has adopted a code of conduct regarding securities transactions by directors on terms no less exacting than the required standard set out in Appendix C3 of the Hong Kong Listing Rules and that, having made specific enquiry of all directors, the directors of the Company have complied with the required standards of the adopted code of conduct throughout the period. Details of the Group's corporate governance arrangements are set out in the Directors' Report within the 2024 Annual Report. As previously announced, the following changes to the composition of the Board have taken place since 31 December 2024. On 1 January 2025, Diane Jurgens and Jackie Hunt joined the Board Risk Committee, David Tang stepped down from the Board Risk Committee, and David and Jackie joined the Remuneration Committee. On 8 May 2025, Maria Ramos commenced her role as Group Chair and Chair of the Governance and Nomination Committee, with Jos�� Vi��als stepping down from the Board. Consequently, Maria stepped down as Senior Independent Director, Chair of the Board Risk Committee and as a member of the Audit and Remuneration Committees. Maria has a contract for services with the Company and will receive a fee of ��1,293,000 per annum for her services as Group Chair with effect from 8 May 2025. With effect from the same date, Phil Rivett, was appointed Chair of the Board Risk Committee, subject to regulatory approval, and assumed the role immediately on an interim basis. He was also appointed as Senior Independent Director and succeeds Maria in both roles. Jackie was appointed as Chair of the Audit Committee, subject to regulatory approval. Phil remains Chair of the Audit Committee ahead of Jackie receiving regulatory approval to assume that role. Jackie was also appointed to the Governance and Nomination Committee. In compliance with Rule 13.51B(1) of the Hong Kong Listing Rules, the Company confirms that, effective 30 April 2025, Bill Winters was appointed to the board of Stripe Inc as a non-executive director after retiring as a non-executive director of Novartis International AG on 6 March 2025. Maria Ramos retired as a non-executive director on the board of Compagnie Financi��re Richemont SA on 31 March 2025. As announced on 26 February 2025, Robin Lawther will join the Board of Intermediate Capital Group plc as a non-executive director on 1 November 2025. Biographies for each of the directors and a list of the committees' membership can be found at www.sc.com/ourpeople. 29. Statutory accounts The information in this Half Year Report is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. This document was approved by the Board on 31 July 2025. The statutory accounts for the year ended 31 December 2024 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. - page 105 - 30. Cash flow statement Adjustment for non-cash items and other adjustments included within income statement 30.06.25 $million 30.06.24 $million Amortisation of discounts and premiums of investment securities (700) 249 Interest expense on subordinated liabilities 302 394 Interest expense on senior debt securities in issue 1,216 1,291 Pension costs for defined benefit schemes 30 27 Share-based payment costs 206 172 Impairment losses on loans and advances and other credit risk provisions 336 240 Other impairment 19 147 Gain on disposal of property, plant and equipment (6) (13) (Gains)/loss on disposal of FVOCI and Actively Managed Certificate financial assets (2) 86 (Gains)/loss on disposal of business1 (242) 169 Depreciation and amortisation 544 516 Fair value changes taken to income statement (1,085) (1,034) Foreign currency revaluation 207 (110) Profit from associates and joint ventures (79) (144) Movement in fair value hedges on FVOCI assets1 (5) (191) Other non-cash items1 (52) (69) Total 689 1,730 1 (Gains)/loss on disposal of business and Movement in fair value hedges on FVOCI assets previously reported within Other non-cash items have been re-presented as separate items Change in operating assets 30.06.25 $million 30.06.24 $million Net decrease in derivative financial instruments 18,128 1,370 Net increase in debt securities, treasury bills and equity shares held at fair value through profit or loss (13,673) (25,183) Net increase in loans and advances to banks and customers (6,856) (9,614) Net decrease/(increase) in prepayments and accrued income 189 (227) Net increase in other assets (26,081) (7,928) Total (28,293) (41,582) Change in operating liabilities 30.06.25 $million 30.06.24 $million Net decrease in derivative financial instruments (13,117) (5,059) Net increase in deposits from banks, customer accounts, debt securities in issue, Hong Kong notes in circulation and short positions 62,397 17,512 Net decrease in accruals and deferred income (751) (380) Net increase in other liabilities 1,651 8,393 Total 50,180 20,466 - page 106 - Changes in financing activities - subordinated and senior debts 30.06.25 $million 30.06.24 $million Subordinated debt (including accrued interest): Opening balance 10,536 12,216 Interest paid (247) (252) Repayment (2,175) (1,000) Foreign exchange movements 365 (91) Fair value hedge adjustments 202 (92) Accrued interest and others 221 244 Closing balance 8,902 11,025 Senior debt (including accrued interest): Opening balance 40,576 41,350 Proceeds from the issue 7,953 7,698 Interest paid (1,678) (548) Repayment (7,040) (7,191) Foreign exchange movements 914 (292) Fair value hedge adjustments 275 (92) Accrued interest and others 1,617 1,612 Closing balance 42,617 42,537 Senior debt is presented as part of debt securities in issue in the condensed consolidated interim balance sheet. - page 107 - Other supplementary information Supplementary financial information Insured and uninsured deposits The Group operates and provides services to customers across many countries and insured deposit is determined on the basis of limits enacted within local regulations. 30.06.25 31.12.24 Insured deposits Uninsured deposits Total $million Insured deposits Uninsured deposits Total $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Current accounts 10 18,339 25,043 168,286 211,678 8 15,596 19,844 152,101 187,549 Savings deposits - 34,549 - 98,419 132,968 - 31,977 - 86,579 118,556 Time deposits 29 32,486 7,229 189,415 229,159 - 28,417 6,717 170,752 205,886 Other deposits - 112 9,978 40,526 50,616 - 104 9,393 37,737 47,234 Total 39 85,486 42,250 496,646 624,421 8 76,094 35,954 447,169 559,225 UK and non-UK deposits The following table summarises the split of Bank and Customer deposits into UK and Non-UK deposits for respective account lines based on the domicile or residence of the clients. 30.06.25 31.12.24 UK deposits Non-UK deposits Total $million UK deposits Non-UK deposits Total $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Current accounts 554 8,348 24,499 178,277 211,678 544 7,734 19,308 159,963 187,549 Savings deposits - 301 - 132,667 132,968 - 145 - 118,411 118,556 Time deposits 516 8,650 6,742 213,251 229,159 315 7,731 6,402 191,438 205,886 Other deposits 2,262 11,437 7,716 29,201 50,616 2,342 12,744 7,051 25,097 47,234 Total 3,332 28,736 38,957 553,396 624,421 3,201 28,354 32,761 494,909 559,225 Contractual maturity of Loans, Investment securities and Deposits 30.06.25 Loans and advances to banks $million Loans and advances to customers $million Investment securities - treasury and other eligible bills $million Investment securities - Debt securities $million Investment securities - Equity shares $million Bank deposits $million Customer accounts $million One year or less 64,441 178,323 52,942 46,771 - 35,416 520,025 Between one and five years 13,108 71,408 19 86,009 - 6,870 58,782 Between five and ten years 1,645 22,390 - 27,935 - 2 1,487 Between ten years and fifteen years 59 13,369 - 5,450 - - 1,216 More than fifteen years and undated 91 65,128 - 31,720 8,420 - 623 Total 79,344 350,618 52,961 197,885 8,420 42,288 582,133 Total amortised cost and FVOCI exposures 42,386 286,731 Of which: Fixed interest rate exposures 35,638 151,270 Of which: Floating interest rate exposures 6,748 135,461 - page 108 - 31.12.24 Loans and advances to banks $million Loans and advances to customers $million Investment securities - treasury and other eligible bills $million Investment securities - Debt securities $million Investment securities - Equity shares $million Bank deposits $million Customer accounts $million One year or less 66,448 181,863 41,966 47,959 - 29,678 463,566 Between one and five years 12,122 63,006 41 74,197 - 6,281 57,062 Between five and ten years 1,680 21,139 - 23,319 - 3 849 Between ten years and fifteen years 71 13,236 - 5,876 - - 1,217 More than fifteen years and undated 239 60,313 - 26,743 6,480 - 569 Total 80,560 339,557 42,007 178,094 6,480 35,962 523,263 Total amortised cost and FVOCI exposures 43,593 281,032 Of which: Fixed interest rate exposures 35,383 153,575 Of which: Floating interest rate exposures 8,210 127,457 Maturity and yield of debt securities, additional tier one and other eligible bills held at amortised cost One year or less Between one and five years Between five and ten years More than ten years Total $million Yield % $million Yield % $million Yield % $million Yield % $million Yield % Central and other government agencies - US 2,096 1.42 9,055 1.91 5,800 1.73 4,267 2.62 21,218 1.95 - UK 77 0.50 618 2.06 49 0.88 - - 744 1.82 - Other 4,719 2.63 9,457 2.69 3,350 3.04 36 6.77 17,562 2.75 Other debt securities 1,420 6.90 2,376 6.09 6,460 4.83 5,430 5.14 15,686 5.32 At 30 June 2025 8,312 3.03 21,506 2.72 15,659 3.28 9,733 4.04 55,210 3.16 One year or less Between one and five years Between five and ten years More than ten years Total $million Yield % $million Yield % $million Yield % $million Yield % $million Yield % Central and other government agencies - US 1,864 1.53 9,607 1.98 5,187 1.88 4,353 2.76 21,011 2.08 - UK 192 1.70 684 2.07 44 0.88 - - 920 1.93 - Other 3,081 3.20 11,454 3.39 2,932 3.93 25 7.55 17,492 3.46 Other debt securities 1,687 6.21 2,676 6.30 4,620 4.86 6,731 5.41 15,714 5.49 At 31 December 2024 6,824 3.45 24,421 3.12 12,783 3.42 11,109 4.38 55,137 3.48 The maturity distributions are presented in the above table on the basis of contractual maturity dates. The weighted average yield for each range of maturities is calculated by dividing the annualised interest income for the year by the book amount of debt securities at that date. Average balance sheets and yields Average balance sheets and yields For the purposes of calculating net interest margin, the following adjustments are made: �� reported net interest income is adjusted to remove interest expense on amortised cost liabilities used to provide funding to the Global Markets business �� financial instruments measured at fair value through profit or loss are classified as non-interest earning �� premiums on financial guarantees purchased to manage interest-earning assets are treated as interest expense. In the Group's view, this results in a net interest margin that is more reflective of banking book performance. The following tables set out the average balances and yields for the Group's assets and liabilities for the periods ended 30 June 2025 and 30 June 2024 under the revised definition of net interest margin. For the purpose of these tables, average balances have been determined on the basis of daily balances, except for certain categories, for which balances have been determined less frequently. The Group does not believe that the information presented in these tables would be significantly different had such balances been determined on a daily basis. - page 109 - Average assets 6 months ended 30.06.25 Average non-interest- earning balance $million Average interest- earning balance $million Interest income $million Gross yield interest-earning balance % Gross yield total balance % Cash and balances at central banks 10,239 57,677 1,036 3.62 3.08 Gross loans and advances to banks 44,580 46,672 1,109 4.79 2.45 Gross loans and advances to customers 70,108 288,614 7,276 5.08 4.09 Impairment provisions against loans and advances to banks and customers - (5,300) - - - Investment securities - treasury and other eligible bills 22,343 27,494 621 4.55 2.51 Investment securities - debt securities 70,219 126,228 2,443 3.90 2.51 Investment securities - equity shares 6,817 - - - - Property, plant and equipment and intangible assets 6,239 - - - - Prepayments, accrued income and other assets 140,721 - - - - Investment associates and joint ventures 1,065 - - - - Total average assets 372,331 541,385 12,485 4.65 2.76 Adjustment for trading book funding cost and others 256 Total average assets 372,331 541,385 12,741 4.75 2.81 6 months ended 30.06.24 Average non-interest earning balance $million Average interest- earning balance $million Interest income $million Gross yield interest- earning balance % Gross yield total balance % Cash and balances at central banks 10,244 59,865 1,360 4.57 3.90 Gross loans and advances to banks 39,425 41,801 1,052 5.06 2.60 Gross loans and advances to customers 56,445 285,940 8,259 5.81 4.85 Impairment provisions against loans and advances to banks and customers - (5,501) - - - Investment securities - treasury and other eligible bills 13,364 28,990 807 5.60 3.83 Investment securities - debt securities 53,058 132,693 2,716 4.12 2.94 Investment securities - equity shares 4,545 - - - - Property, plant and equipment and intangible assets 6,263 - - - - Prepayments, accrued income and other assets 120,866 - - - - Investment associates and joint ventures 1,052 - - - - Total average assets 305,262 543,788 14,194 5.25 3.36 Adjustment for trading book funding cost and others 371 Total average assets 305,262 543,788 14,565 5.39 3.45 Average liabilities 6 months ended 30.06.25 Average non-interest bearing balance $million Average interest-bearing balance $million Interest expense $million Rate paid interest-bearing balance % Rate paid total balance % Deposits by banks 17,730 22,344 326 2.94 1.64 Customer accounts: Current accounts 42,054 137,384 1,945 2.85 2.19 Savings deposits - 122,554 875 1.44 1.44 Time deposits 20,779 191,578 4,083 4.30 3.88 Other deposits 39,189 7,154 150 4.23 0.65 Debt securities in issue 12,153 71,832 1,727 4.85 4.15 Accruals, deferred income and other liabilities 166,756 1,303 33 5.11 0.04 Subordinated liabilities and other borrowed funds - 9,907 302 6.15 6.15 Non-controlling interests 389 - - - - Shareholders' funds 50,610 - - - - 349,660 564,056 9,441 3.38 2.08 Adjustment for trading book funding cost and others (2,199) Total average liabilities and shareholders' funds 349,660 564,056 7,242 2.59 1.60 - page 110 - 6 months ended 30.06.24 Average non-interest bearing balance $million Average interest-bearing balance $million Interest expense $million Rate paid interest-bearing balance % Rate paid total balance % Deposits by banks 15,374 21,300 441 4.16 2.42 Customer accounts: Current accounts 39,666 128,079 2,245 3.52 2.69 Savings deposits 0 113,627 1,204 2.13 2.13 Time deposits 19,131 186,811 4,642 5.00 4.53 Other deposits 36,403 11,734 299 5.12 1.25 Debt securities in issue 11,642 64,678 1,794 5.58 4.73 Accruals, deferred income and other liabilities 138,565 0 0 - - Subordinated liabilities and other borrowed funds 0 11,379 394 6.96 6.96 Non-controlling interests 389 0 0 - - Shareholders' funds 50,272 0 0 - - 311,442 537,608 11,019 4.12 2.61 Adjustment for trading book funding cost and others (1,816) Total average liabilities and shareholders' funds 311,442 537,608 9,203 3.44 2.18 Net interest margin 6 months ended 30.06.25 $million 6 months ended 30.06.24 $million Interest income (reported) 12,485 14,194 Adjustment for trading book funding cost and others 1 256 371 Interest income adjusted for trading book funding cost and others 12,741 14,565 Average interest-earning assets 541,385 543,788 Gross yield (%) 4.75 5.39 Interest expense (reported) 9,441 11,019 Adjustment for trading book funding cost and others (2,199) (1,816) Interest expense adjusted for trading book funding cost and others 7,242 9,203 Average interest-bearing liabilities 564,056 537,608 Rate paid (%) 2.59 3.44 Net yield (%) 2.16 1.95 Adjusted net interest income1 5,499 5,362 Net interest margin (%) 2.05 1.98 1 Adjusted net interest income has been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to reflect the reclassification of funding cost mismatches to non-net interest income (non NI)I. Adjusted NIL is reported NIL less trading book funding cost, treasury currency management activities, cash collateral and prime service - page 111 - Additional items A. Our Fair Pay Charter Our Fair Pay Charter brings all People Leaders and colleagues to a shared understanding of our fundamental principles around reward which are key considerations in our decision-making. The four focus areas in the Charter - Equal pay; Purpose-led; Competitive opportunities; Performance-driven - drive our remuneration policies and processes, ensuring equity and transparency are at the forefront of decision-making, and that sustainable high performance, delivered in line with our valued behaviours, is recognised and rewarded appropriately. Our 2024 Diversity, Equality and Inclusion Impact Report gives further detail on our Fair Pay Charter and is available on our Group website. B. Group share plans Discretionary share plans The 2021 Standard Chartered Share Plan (the 2021 Plan) was approved by shareholders in May 2021 and is the Group's main share plan, replacing the 2011 Standard Chartered Share Plan (the 2011 Plan) for new awards from June 2021. It is used to deliver various types of share awards to employees and former employees of the Group, including directors and former executive directors: Award type Description and performance measures Long-Term Incentive Plan (LTIP) awards Long-Term Incentive Plan (LTIP) awards are granted with a vesting period of between three to seven years (with a further 12 month retention period post vesting), subject to performance measures which have previously included: �� relative total shareholder return (TSR); �� return on tangible equity (RoTE) (with a Common Equity Tier 1 (CET1) underpin); and �� strategic measures (including targets set for sustainability linked to business strategy) Each measure is assessed independently over a three-year period. All LTIP awards have an individual conduct gateway requirement that results in the award lapsing if not met, and the outcome of LTIP awards granted from 2025 onwards are subject to a risk and control modifier. Deferred shares Used to deliver: �� the deferred portion of year-end variable remuneration, in line with both market practice and regulatory requirements. These awards vest in instalments on anniversaries of the award date specified at the time of grant. This enables the Group to meet regulatory requirements relating to deferral levels, and is in line with market practice. �� replacement buyout awards to new joiners who forfeit awards on leaving their previous employers. These vest in the quarter most closely following the date when the award would have vested at the previous employer. This enables the Group to meet regulatory requirements relating to buyouts, and is in line with market practice. Deferred share awards have various vesting periods and are not subject to any performance measures. Under the 2021 Plan and 2011 Plan, no grant price is payable to receive an award. The remaining life of the 2021 Plan during which new awards can be made is six years. The 2011 Plan has expired and no further awards can be granted under this plan. All employee share plans The Standard Chartered 2023 Sharesave Plan was approved by shareholders in May 2023, replacing the Standard Chartered 2013 Sharesave Plan. Under the 2023 Sharesave Plan, employees may open a savings contract. Within a maturity period of six months after the third anniversary, employees may purchase ordinary shares in the Company at a discount of up to 20 per cent on the share price at the date of invitation. The vesting period of the Sharesave options is three years. There are no performance measures attached to options granted under the 2023 Sharesave Plan and no grant price is payable to receive an option. In some countries in which the Group operates, it is not possible to deliver shares under the 2023 Sharesave Plan, typically due to securities laws and regulatory restrictions. In these countries, where possible, the Group offers an equivalent cash-based plan to its employees. Valuation of share awards Details of the valuation models used in determining the fair values of share awards granted under the Group's share plans are detailed in the Group's 2024 Annual Report. - page 112 - Information on options and awards granted and available for grant under our share plans As at 1 January 2025 and 30 June 2025, the share awards outstanding under our discretionary and Sharesave plans adopted by Standard Chartered PLC and its subsidiaries represented 5.1 per cent and 5.3 per cent of the issued ordinary share capital of Standard Chartered PLC respectively. Accordingly, the number of Standard Chartered PLC shares available to be granted under all discretionary and Sharesave plans at the beginning and the end of the period were 123,504,051 and 124,710,668 respectively. The maximum number of Standard Chartered PLC shares that may be issued in respect of share options and awards granted under the discretionary and Sharesave plans during the period divided by the weighted average number of Standard Chartered PLC shares in issue at the end of the period is 0.7 per cent. Reconciliation of share award movements for the year to 30th June 2025 LTIP 1 Deferred/Buy-out awards 1 Sharesave 5 Weighted average Sharesave exercise price (��) Outstanding on 1 January 2025 9,640,693 51,693,726 20,565,111 5.48 Granted 2,3,4 2,159,737 15,012,117 - - Lapsed 6 (324,419) (286,441) (568,281) 5.61 Vested/Exercised (1,272,072) (19,184,061) (1,138,037) 3.77 Outstanding on 30 June 2025 10,203,939 47,235,341 18,858,793 5.57 Total number of securities available for issue under the plan 10,203,939 47,235,341 18,858,793 5.57 Percentage of the issued shares this represents as of 30 June 2025 0.44 2.03 0.81 Exercisable as of 30 June 2025 - 102,277 60,887 5.18 Range of exercise prices (��) - - 3.67 - 6.10 Intrinsic value of vested but not exercised options ($ million) 0.00 1.69 0.58 Weighted average contractual remaining life (years) 7.65 8.42 2.20 Weighted average share price for awards exercised during the period (��) 11.78 11.54 11.17 1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards 2 2,159,737 (LTIP) granted on 12 May 2025. The closing price of the shares immediately before the date on which the awards were granted was ��10.675 3 14,537,101 (Deferred shares) granted on 14 March 2025. The closing price of the shares immediately before the date on which the awards were granted was ��11.58. 141,397 (Deferred shares) notional dividend uplift on 27 March 2025. 333,619 (Deferred shares) granted on 12 May 2025. The closing price of the shares immediately before the date on which the awards were granted was ��10.675 4 No discretionary awards (LTIP or deferred/buy-out awards) have been granted in the form of options since June 2015. For historic awards granted as options and exercised in the period to 30 June 2025, the exercise price of deferred/ Buy-out shares options was nil 5 All Sharesave awards are in the form of options. The exercise price of Sharesave options exercised was �� 6.10 for options granted in 2024, �� 5.88 for options granted in 2023, ��4.23 for options granted in 2022 and ��3.67 for options granted in 2021 6 No options or share awards were cancelled in the period C. Group Chair and independent non-executive directors' interests in ordinary shares at 30 June 2025 1,2 Shares beneficially held as of 31 December 2024 Shares beneficially held as of 30 June 2025 Chair M Ramos 3 2,000 2,000 Independent non-executive directors S M Apte 2,000 2,000 J Hunt 2,000 2,000 D E Jurgens 8,888 8,888 R A Lawther, CBE 2,000 2,000 L Leong 13,369 13,369 P G Rivett 2,128 2,128 D Tang 2,000 2,000 J Vi��als 4 45,000 - L Y Yueh, CBE 2,000 2,000 1 Independent non-executive directors are required to hold shares with a nominal value of $1,000. All the directors have met this requirement 2 The beneficial interests of directors and their related parties in the ordinary shares of the Company are set out above. The directors do not have any non-beneficial interests in the Company's shares. None of the directors used ordinary shares as collateral for any loans. No director had either i) an interest in the Company's preference shares or loan stocks of any subsidiary or associated undertaking of the Group or ii) any corporate interests in the Company's ordinary shares. All figures as of 30 June 2025 3 Maria Ramos was appointed as Group Chair on 8 May 2025 4 J Vi��als retired from the Board on 8 May 2025 - page 113 - D. Executive directors' interests in ordinary shares at 30 June 2025 Scheme interests awarded, exercised and lapsed during the period Employees, including executive directors, are not permitted to engage in any personal investment strategies with regards to their Company shares, including hedging against the share price of Company shares. The main features of the outstanding shares and long-term incentive plan (LTIP) awards are summarised below: LTIP award 1 Performance measures Performance outcome 2018-2020 33% Return on equity (RoE) 33% Relative TSR 33% Strategic 26% 2019-2021 33% RoTE 33% Relative TSR 33% Strategic 23% 2020-2022 36.8% 2021-2023 30% RoTE 30% Relative TSR 15% Sustainability 25% Strategic 57% 2022-2024 88% 2023-2025 To be assessed at the end of 2025 2024-2026 30% RoTE 30% Relative TSR 25% Environmental, Social and Governance (ESG) 15% Other strategic To be assessed at the end of 2026 2025-2027 40% RoTE 40% Relative TSR 20% Sustainability To be assessed at the end of 2027 1 LTIP awards are delivered in five equal tranches - page 114 - The following table shows the changes in share interests. Date of grant Changes in interests from 1 January to 30 June 2025 Share award price (��) At 1 January Awarded 1,2 Vested 3 Lapsed At 30 June Performance period end Vesting date Bill Winters 1 2018-2020 LTIP 9 Mar 2018 7.782 28,179 - 28,179 - - 9 Mar 2021 9 Mar 2025 2019-2021 LTIP 11 Mar 2019 6.105 30,604 - 30,604 - - 11 Mar 2022 11 Mar 2025 30,605 - - - 30,605 11 Mar 2026 2020-2022 LTIP 9 Mar 2020 5.196 59,282 - 59,282 - - 9 Mar 2023 9 Mar 2025 59,282 - - - 59,282 9 Mar 2026 59,282 - - - 59,282 9 Mar 2027 2021-2023 LTIP 15 Mar 2021 4.901 85,853 - 85,853 - 15 Mar 2024 15 Mar 2025 85,853 - - - 85,853 15 Mar 2026 85,853 - - - 85,853 15 Mar 2027 85,853 - - - 85,853 15 Mar 2028 2022-2024 LTIP 14 Mar 2022 4.876 151,386 - 133,219 18,167 14 Mar 2025 14 Mar 2025 151,386 - - 18,167 133,219 14 Mar 2026 151,386 - - 18,167 133,219 14 Mar 2027 151,386 - - 18,167 133,219 14 Mar 2028 151,388 - - 18,167 133,221 14 Mar 2029 2023-2025 LTIP 13 Mar 2023 7.398 101,209 - - - 101,209 13 Mar 2026 13 Mar 2026 101,209 - - - 101,209 13 Mar 2027 101,209 - - - 101,209 13 Mar 2028 101,209 - - - 101,209 13 Mar 2029 101,209 - - - 101,209 13 Mar 2030 2024-2026 LTIP 12 Mar 2024 6.600 123,275 - - - 123,275 12 Mar 2027 12 Mar 2027 123,275 - - - 123,275 12 Mar 2028 123,275 - - - 123,275 12 Mar 2029 123,275 - - - 123,275 12 Mar 2030 123,278 - - - 123,278 12 Mar 2031 2025-2027 LTIP 12 May 2025 10.675 - 163,242 - - 163,242 31 Dec 2027 12 May 2028 - 163,242 - - 163,242 12 May 2029 - 163,242 - - 163,242 12 May 2030 - 163,242 - - 163,242 12 May 2031 - 163,245 - - 163,245 12 May 2032 Diego De Giorgi 1 2024-2026 LTIP 12 Mar 2024 6.600 80,812 - - - 80,812 12 Mar 2027 12 Mar 2027 80,812 - - - 80,812 12 Mar 2028 80,812 - - - 80,812 12 Mar 2029 80,812 - - - 80,812 12 Mar 2030 80,814 - - - 80,814 12 Mar 2031 2025-2027 LTIP 12 May 2025 10.675 - 90,394 - - 90,394 31 Dec 2027 12 May 2028 - 90,394 - - 90,394 12 May 2029 - 90,394 - - 90,394 12 May 2030 - 90,394 - - 90,394 12 May 2031 - 90,395 - - 90,395 12 May 2032 1 The unvested LTIP awards held by Bill and Diego are conditional rights. They do not have to pay towards these awards. Under these awards, shares are delivered on vesting or as soon as practicable thereafter 2 For the 2025-2027 LTIP awards granted to Bill and Diego on 12 May 2025, the values granted were: Bill: ��7.4 million; Diego: ��4.1 million. The number of shares awarded in respect of the LTIP took into account the lack of dividend equivalents (calculated by reference to market consensus dividend yield) such that the overall value of the award was maintained. Performance measures apply to 2025-2027 LTIP awards. The closing price on the day before grant was ��10.675 3 Shares (before tax) were delivered to Bill from the vesting element of LTIP awards. The closing share price on the day before the shares were delivered were as follows: �� 10 March 2025: Shares in respect of the 2018-2020 LTIP and 2020-2022 LTIP. Previous day closing share price: ��12.150 �� 11 March 2025: Shares in respect of the 2019-2021 LTIP. Previous day closing share price: ��11.705 �� 17 March 2025: Shares in respect of the 2021-2023 LTIP. Previous day closing share price: ��11.765 �� 19 March 2025: Shares in respect of the 2022-2024 LTIP. Previous day closing share price: ��12.060 4 The weighted average closing price for Bill's awards that vested during the period was ��11.976 At 30 June 2025, none of the directors had registered an interest or short position in the shares, underlying shares or debentures of the Company or any of its associated corporations that was required to be recorded pursuant to section 352 of the Securities and Futures Ordinance, or as otherwise notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers. - page 115 - Shareholdings and share interests The following table summarises the executive directors' shareholdings and share interests. Shares held beneficially 1,2,3 Unvested share awards not subject to performance measures (net of tax) 4,5 Total shares counting towards shareholding requirement Shareholding requirement Salary 3 Value of shares counting towards shareholding requirement as a percentage of salary 1 Unvested share awards subject to performance measures (before tax) Bill Winters 3,180,013 497,989 3,678,002 500% salary ��1,500,000 2,960% 1,938,636 Diego De Giorgi 100,908 - 100,908 400% salary ��1,100,000 111% 856,033 1 All figures are as of 30 June 2025 unless stated otherwise. The closing share price on 30 June 2025 was ��12.07. No director had either: (i) an interest in Standard Chartered PLC's preference shares or loan stocks of any subsidiary or associated undertaking of the Group; or (ii) any corporate interests in Standard Chartered PLC's ordinary shares 2 The beneficial interests of directors and connected persons in the ordinary shares of the Company are set out above. The executive directors do not have any non-beneficial interest in the Company's shares. Neither of the executive directors used ordinary shares as collateral for any loans 3 The shares held beneficially include shares awarded to deliver the share element of executive directors' salary prior to 1 April 2025, when part of salary was delivered in shares. Since this date, all salary is delivered in cash 4 88 per cent of the 2022-2024 LTIP award is no longer subject to performance measures due to achievement against 2022-2024 RoTE, relative TSR and strategic measures 5 As Bill and Diego are UK taxpayers, 47 per cent tax is assumed to apply to other unvested share awards (marginal combined PAYE rate of income tax at 45 per cent and employee National Insurance contributions at 2 per cent) - rates may change E. Share price information The middle market price of an ordinary share at the close of business on 30 June 2025 was 1,207.0 pence. The share price range during the first half of 2025 was 878.8 pence to 1,269.0 pence (based on the closing middle market prices). F. Free float percentage At 30 June 2025, the free float percentage of voting rights attached to all of the Company's listed ordinary and preference shares in issue was approximately 99.87 per cent. For information on the outstanding Fixed Rate Resetting Perpetual Subordinated Contingent Convertible AT1 securities issued by Standard Chartered PLC and the rights attached to them and further information on our website at www.sc.com/en/investors/credit-ratings-fixed-income/capital-securities-in-issue/. G. Substantial shareholders The Company and its shareholders have been granted partial exemption from the disclosure requirements under Part XV of the Securities and Futures Ordinance (SFO). As a result of this exemption, shareholders no longer have an obligation under Part XV of the SFO (other than Divisions 5, 11 and 12 thereof) to notify the Company of substantial shareholding interests, and the Company is no longer required to maintain a register of interests of substantial shareholders under section 336 of the SFO. The Company is, however, required to file with The Stock Exchange of Hong Kong Limited any disclosure of interests made in the UK. H. Code for Financial Reporting Disclosures The UK Finance Code for Financial Reporting Disclosure (the Code) sets out five disclosure principles together with supporting guidance. The principles are that UK banks will: provide high-quality, meaningful and decision-useful disclosures; review and enhance their financial instrument disclosures for key areas of interest; keep under review and commit to ongoing re-evaluation and enhancement of financial instrument disclosures for key areas of interest, acknowledging the importance of good practice recommendations and similar guidance issued from time to time by relevant regulators and standard-setters and assessing the applicability and relevance of such guidance to disclosures; seek to enhance the comparability of financial statement disclosures across the UK banking sector; and clearly differentiate in their annual reports between information that is audited and information that is unaudited. The Group's interim financial statements for the six months ended 30 June 2025 have been prepared in accordance with the Code's principles. - page 116 - I. Employees The details regarding our remuneration policies, bonus schemes and training schemes have not materially changed from our 2024 Annual Report and Accounts and we will be updating these in the 2025 Annual Report. Employee headcount The following table summarises the number of employees within the Group: Business 1 Support services 2 Total 3,4 At 30 June 2025 29,613 51,082 80,695 At 31 December 2024 29,563 51,582 81,145 1 Business is defined as employees directly under the remit of the businesses 2 Support services include employees who support businesses' operations or investments where costs are fully recharged to the businesses. Decrease in support services H1 in 2025 is mainly due to decrease in technology and operations support resources as tighter hiring controls are in place and we continue to review our workforce composition and skills' 3 Excludes 498 employees (headcount) from Digital Ventures entities (Appro, Audax, Cashenable/Labamu, Furaha, Letsbloom, Libeara, MyZoi, Qatalyst, Solv Ghana, Solv Kenya, TASConnect, Zodia Custody, Zodia Markets) 4 Includes employees operating in discontinued/restructured businesses - page 117 - Shareholder information Dividend and interest payment dates Ordinary shares 2025 interim dividend (cash only) Results and dividend announced 31 July 2025 Ex-dividend date 7 (UK) 6 (HK) August 2025 Record date 8 August 2025 Last date to amend currency election instructions for cash dividend* 5 September 2025 Dividend payment date 30 September 2025 * in either US dollars, sterling, or Hong Kong dollars 2025 final dividend (provisional only) Results and dividend announcement date 24 February 2026 Preference shares Second half-yearly dividend 7 3 / 8 per cent non-cumulative irredeemable preference shares of ��1 each 1 October 2025 8 �� per cent non-cumulative irredeemable preference shares of ��1 each 1 October 2025 6.409 per cent non-cumulative preference shares of $5 each 30 July 2025 and 30 October 2025 7.014 per cent non-cumulative preference shares of $5 each 30 July 2025 Further details regarding dividends can be found on our website at www.sc.com/shareholders. ShareCare ShareCare is available to shareholders on the Company's UK register who have a UK address and bank account. It allows you to hold your Standard Chartered PLC shares in a nominee account. Your shares will be held in electronic form so you will no longer have to worry about keeping your share certificates safe. If you join ShareCare, you will still be invited to attend the Company's AGM and you will receive any dividend paid at the same time as everyone else. ShareCare is free to join and there are no annual fees to pay. If you would like to receive more information, please visit our website at www.sc.com/sharecare or contact the shareholder helpline on 0370 702 0138. Donating shares to ShareGift Shareholders who have a small number of shares often find it uneconomical to sell them. An alternative is to consider donating them to the charity ShareGift (registered charity 1052686), which collects donations of unwanted shares until there are enough to sell and uses the proceeds to support UK charities. There is no implication for capital gains tax (no gain or loss) when you donate shares to charity, and UK taxpayers may be able to claim income tax relief on the value of their donation. Further information can be obtained from the Company's registrars or from ShareGift on 020 7930 3737 or from www.sharegift.org. Bankers' Automated Clearing System (BACS) Dividends can be paid straight into your bank or building society account. Please register online at www.investorcentre.co.uk or contact our registrar for a mandate form. Registrars and shareholder enquiries If you have any enquiries relating to your shareholding and you hold your shares on the UK register, please contact our registrar at www.investorcentre.co.uk/contactus. Alternatively, please contact Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZZ or call the shareholder helpline number on 0370 702 0138. If you hold your shares on the Hong Kong branch register and you have enquiries, please contact Computershare Hong Kong Investor Services Limited, 17M Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong. You can check your shareholding at: computershare.com/hk/investors. - page 118 - Chinese translation If you would like a Chinese version of this Half Year Report, please contact: Computershare Hong Kong Investor Services Limited at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong. ��,��:��183��17M�� Shareholders on the Hong Kong branch register who have asked to receive corporate communications in either Chinese or English can change this election by contacting Computershare. If there is a dispute between any translation and the English version of this Half Year Report, the English text shall prevail. Electronic communications If you hold your shares on the UK register and in future you would like to receive the Half Year Report electronically rather than by post, please register online at: investorcentre.co.uk. Click on 'register now' and follow the instructions. You will need to have your shareholder or ShareCare reference number to hand. You can find this on your share certificate or ShareCare statement. Once you have registered and confirmed your email communication preference, you will receive future notifications via email enabling you to submit your proxy vote online. In addition, as a member of Investor Centre, you will be able to manage your shareholding online and change your bank mandate or address information. - page 119 - Important notices Forward-looking statements The information included in this document may contain 'forward-looking statements' based upon current expectations or beliefs as well as statements formulated with assumptions about future events. Forward-looking statements include, without limitation, projections, estimates, commitments, plans, approaches, ambitions and targets (including, without limitation, ESG commitments, ambitions and targets). Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'aim', 'continue' or other words of similar meaning to any of the foregoing. Forward-looking statements may also (or additionally) be identified by the fact that they do not relate only to historical or current facts. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Readers should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause the Group's actual results and its plans and objectives to differ materially from those expressed or implied in forward-looking statements. The factors include (but are not limited to): changes in global, political, economic, business, competitive and market forces or conditions, or in future exchange and interest rates; changes in environmental, geopolitical, social or physical risks; legal, regulatory and policy developments, including regulatory measures addressing climate change and broader sustainability-related issues; the development of standards and interpretations, including evolving requirements and practices in ESG reporting; the ability of the Group, together with governments and other stakeholders to measure, manage, and mitigate the impacts of climate change and broader sustainability-related issues effectively; risks arising out of health crises and pandemics; risks of cyber attacks, data, information or security breaches or technology failures involving the Group; changes in tax rates or policy; future business combinations or dispositions; and other factors specific to the Group, including those identified in Standard Chartered PLC's Annual Report and the financial statements of the Group. To the extent that any forward-looking statements contained in this document are based on past or current trends and/or activities of the Group, they should not be taken as a representation that such trends or activities will continue in the future. No statement in this document is intended to be, nor should be interpreted as, a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date that it is made. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise. Please refer to Standard Chartered PLC's Annual Report and the financial statements of the Group for a discussion of certain of the risks and factors that could adversely impact the Group's actual results, and cause its plans and objectives to differ materially from those expressed or implied in any forward-looking statements. Non-IFRS performance measures and alternative performance measures This document may contain: (a) financial measures and ratios not specifically defined under: (i) International Financial Reporting Standards (IFRS) (Accounting Standards) as adopted by the European Union; or (ii) UK-adopted International Accounting Standards (IAS); and/or (b) alternative performance measures as defined in the European Securities and Market Authority guidelines. Such measures may exclude certain items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. These measures are not a substitute for IAS or IFRS measures and are based on a number of assumptions that are subject to uncertainties and change. Please refer to Standard Chartered PLC's Annual Report and the financial statements of the Group for further information, including reconciliations between the underlying and reported measures. 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. - page 120 - 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. General You are advised to exercise your own independent judgement (with the advice of your professional advisers as necessary) with respect to the risks and consequences of any matter contained in this document. The Group, its affiliates, directors, officers, employees or agents expressly disclaim any liability and responsibility for any decisions or actions which you may take and for any damage or losses you may suffer from your use of or reliance on the information contained in this document. - page 121 - Glossary Absolute financed emissions A measurement of our attributed share of our clients' greenhouse gas emissions. Additional Tier 1 capital (AT1) Additional Tier 1 capital consists of instruments other than Common Equity Tier 1 that meet the Capital Requirements Regulation (as it forms part of UK domestic law) criteria for inclusion in Tier 1 capital. Additional value adjustment (AVA) See Prudent valuation adjustment. Advanced Internal Rating Based (AIRB) approach The AIRB approach under the Basel framework is used to calculate credit risk capital based on the Group's own estimates of prudential parameters. Alternative performance measures (APM) A financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. Assets under management (AUM) Total market value of assets such as deposits, securities and funds held by the Group on behalf of the clients. Associate of South East Asian Nations (ASEAN) Includes the Group's operations in Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. Basel III The global regulatory standards on capital adequacy and liquidity developed by the Basel Committee on Banking Supervision (BCBS) in response to the financial crisis of 2007-2009. It was originally issued in December 2010 and finalised in December 2017. The standards have been in the process of being phased into UK policy since 2022. Basel Committee on Banking Supervision (BCBS) A forum on banking supervisory matters which develops global supervisory standards for the banking industry. Its members are officials from 45 central banks or prudential supervisors from 27 countries and territories. Basic earnings per share (EPS) Represents earnings divided by the basic weighted average number of shares. Basis point (bps) One hundredth of a per cent (0.01 per cent); 100 basis points is 1 per cent. Capital-lite income Income derived from products with low risk-weighted asset consumption or products which are non-funding in nature. CRD or Capital Requirements Directive A capital adequacy legislative package adopted by the Prudential Regulation Authority. CRD comprises the Capital Requirements Directive and the UK onshored Capital Requirements Regulation (CRR). The package implements the Basel III framework together with transitional arrangements for some of its requirements. CRD IV came into force on 1 January 2014. The EU CRR II and CRD V amending the existing package came into force in June 2019 with most changes starting to apply from 28 June 2021. Only those parts of the EU CRR II that applied on or before 31 December 2020, when the UK was a member of the EU, have been implemented. The PRA recently finalised the UK's version of the CRR II for implementation on 1 January 2022. Capital resources Sum of Tier 1 and Tier 2 capital after regulatory adjustments. - page 122 - CGU or Cash-generating unit The smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Cash shortfall The difference between the cash flows that are due in accordance with the contractual terms of the instrument and the cash flows that the Group expects to receive over the contractual life of the instrument. Clawback An amount an individual is required to pay back to the Group, which has to be returned to the Group under certain circumstances. Commercial real estate Includes office buildings, industrial property, medical centres, hotels, malls, retail stores, shopping centres, farm land, multi-family housing buildings, warehouses, garages, and industrial properties. Commercial real estate loans are those backed by a package of commercial real estate assets. Common Equity Tier 1 capital (CET1) Common Equity Tier 1 capital consists of the common shares issued by the Group and related share premium, retained earnings, accumulated other comprehensive income and other disclosed reserves, eligible non-controlling interests and regulatory adjustments required in the calculation of Common Equity Tier 1. CET1 ratio A measure of the Group's CET1 capital as a percentage of risk-weighted assets. Contractual maturity Contractual maturity refers to the final payment date of a loan or other financial instrument, at which point all the remaining outstanding principal and interest is due to be paid. Countercyclical capital buffer The countercyclical capital buffer (CCyB) is part of a set of macroprudential instruments, designed to help counter procyclicality in the financial system. CCyB as defined in the Basel III standard provides for an additional capital requirement of up to 2.5 per cent of risk-weighted assets in a given jurisdiction. The Bank of England's Financial Policy Committee has the power to set the CCyB rate for the United Kingdom. Each bank must calculate its 'institution-specific' CCyB rate, defined as the weighted average of the CCyB rates in effect across the jurisdictions in which it has credit exposures. The institution-specific CCyB rate is then applied to a bank's total risk-weighted assets. Counterparty credit risk The risk that a counterparty defaults before satisfying its obligations under a derivative, a securities financing transaction (SFT) or a similar contract. Credit conversion factor (CCF) An estimate of the amount the Group expects a customer to have drawn further on a facility limit at the point of default. This is either prescribed by CRR or modelled by the bank. Credit default swaps (CDS) A credit derivative is an arrangement whereby the credit risk of an asset (the reference asset) is transferred from the buyer to the seller of protection. A credit default swap is a contract where the protection seller receives premium or interest-related payments in return for contracting to make payments to the protection buyer upon a defined credit event. Credit events normally include bankruptcy, payment default on a reference asset or assets, or downgrades by a rating agency. Credit institutions An institution whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account. - page 123 - Credit risk mitigation Credit risk mitigation is a process to mitigate potential credit losses from any given account, customer or portfolio by using a range of tools such as collateral, netting agreements, credit insurance, credit derivatives and guarantees. Credit valuation adjustments (CVA) An adjustment to the fair value of derivative contracts that reflects the possibility that the counterparty may default such that the Group would not receive the full market value of the contracts. Customer accounts Money deposited by all individuals and companies which are not credit institutions including securities sold under repurchase agreement (see repo/reverse repo). Such funds are recorded as liabilities in the Group's balance sheet under customer accounts. Days past due One or more days that interest and/or principal payments are overdue based on the contractual terms. Debit valuation adjustment (DVA) An adjustment to the fair value of derivative contracts that reflects the possibility that the Group may default and not pay the full market value of contracts. Debt securities Debt securities are assets on the Group's balance sheet and represent certificates of indebtedness of credit institutions, public bodies or other undertakings, excluding those issued by central banks. Debt securities in issue Debt securities in issue are transferable certificates of indebtedness of the Group to the bearer of the certificate. These are liabilities of the Group and include certificates of deposits. Default Financial assets in default represent those that are at least 90 days past due in respect of principal or interest and/or where the assets are otherwise considered to be unlikely to pay, including those that are credit-impaired. Deferred tax asset (DTA) Income taxes recoverable in future periods in respect of deductible temporary differences between the accounting and tax base of an asset or liability that will result in tax deductible amounts in future periods, the carry-forward of tax losses or the carry-forward of unused tax credits. Deferred tax liability (DTL) Income taxes payable in future periods in respect of taxable temporary differences between the accounting and tax base of an asset or liability that will result in taxable amounts in future periods. Defined benefit obligation The present value of expected future payments required to settle the obligations of a defined benefit scheme resulting from employee service. Defined benefit scheme Pension or other post-retirement benefit scheme other than a defined contribution scheme. Defined contribution scheme A pension or other post-retirement benefit scheme where the employer's obligation is limited to its contributions to the fund. Delinquency A debt or other financial obligation is considered to be in a state of delinquency when payments are overdue. Loans and advances are considered to be delinquent when consecutive payments are missed. Also known as arrears. - page 124 - Deposits by banks Deposits by banks comprise amounts owed to other domestic or foreign credit institutions by the Group including securities sold under repo. Diluted earnings per share Represents earnings divided by the weighted average number of shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. Dividend per share Represents the entitlement of each shareholder in the share of the profits of the Company. Calculated in the lowest unit of currency in which the shares are quoted. Early alert, purely and non-purely precautionary A borrower's account which exhibits risks or potential weaknesses of a material nature requiring closer monitoring, supervision, or attention by management. Weaknesses in such a borrower's account, if left uncorrected, could result in deterioration of repayment prospects and the likelihood of being downgraded to credit grade 12 or worse. When an account is on early alert, it is classified as either purely precautionary or non-purely precautionary. A purely precautionary account is one that exhibits early alert characteristics, but these do not present any imminent credit concern. If the symptoms present an imminent credit concern, an account will be considered for classification as non-purely precautionary. Effective tax rate The tax on profit/(losses) on ordinary activities as a percentage of profit/(loss) on ordinary activities before taxation. Encumbered assets On-balance sheet assets pledged or used as collateral in respect of certain of the Group's liabilities. ESG Environmental, Social and Governance. European Union The European Union is a political and economic union of 27 member states that are located primarily in Europe. Eurozone Represents the 19 EU countries that have adopted the euro as their common currency. Expected credit loss (ECL) Represents the present value of expected cash shortfalls over the residual term of a financial asset, undrawn commitment or financial guarantee. This comprises ECL generated by the models, management judgements and individually assessed credit impairment provisions. Expected loss (EL) The Group measure of anticipated loss for exposures captured under an internal ratings-based credit risk approach for capital adequacy calculations. It is measured as the Group-modelled view of anticipated loss based on probability of default, loss given default and exposure at default, with a one-year time horizon. Exposures Credit exposures represent the amount lent to a customer, together with any undrawn commitments. Exposure at default (EAD) The estimation of the extent to which the Group may be exposed to a customer or counterparty in the event of, and at the time of, that counterparty's default. At default, the customer may not have drawn the loan fully or may already have repaid some of the principal, so that exposure is typically less than the approved loan limit. - page 125 - External Credit Assessment Institution (ECAI) External credit ratings are used to assign risk-weights under the standardised approach for sovereigns, corporates and institutions. The external ratings are from credit rating agencies that are registered or certified in accordance with the credit rating agencies regulation or from a central bank issuing credit ratings, which is exempt from the application of this regulation. Financial Conduct Authority (FCA) The Financial Conduct Authority regulates the conduct of financial firms and, for certain firms, prudential standards in the UK. It has a strategic objective to ensure that the relevant markets function well. Forbearance Forbearance takes place when a concession is made to the contractual terms of a loan in response to an obligor's financial difficulties. The Group classifies such modified loans as either 'Forborne - not impaired loans' or 'Loans subject to forbearance - impaired'. Once a loan is categorised as either of these, it will remain in one of these two categories until the loan matures or satisfies the 'curing' conditions described in Note 8 to the financial statements in the 2024 Annual Report. Forborne - not impaired loans Loans where the contractual terms have been modified due to financial difficulties of the borrower, but the loan is not considered to be impaired. See 'Forbearance'. Funded/unfunded exposures Exposures where the notional amount of the transaction is funded or unfunded. Represents exposures where a commitment to provide future funding is made but funds have been released/not released. Funding valuation adjustment (FVA) FVA reflects an adjustment to fair value in respect of derivative contracts that reflects the funding costs that the market participant would incorporate when determining an exit price. G-SIB buffer A CET1 capital buffer which results from designation as a G-SIB. The G-SIB buffer is between 1 per cent and 3.5 per cent, depending on the allocation to one of five buckets based on the annual scoring. In the UK, the G-SIB buffer is implemented via the CRD as Global Systemically Important Institutions (G-SII) buffer requirement. Global Systemically Important Banks (G-SIBs) Global banking financial institutions whose size, complexity and systemic interconnectedness mean that their distress or failure would cause significant disruption to the wider financial system and economic activity. The list of G-SIBs is assessed under a framework established by the Financial Stability Board (FSB) and the BCBS. In the UK, the G-SIB framework is implemented via the CRD and G-SIBs are referred to as Global Systemically Important Institutions (G-SIIs). Green and Sustainable Product Framework Sets out underlying eligible qualifying themes and activities that may be considered ESG. This has been developed with the support of external experts, and has been informed by industry and supervisory principles and standards such as the Green Bond Principles and EU Taxonomy for sustainable activities. Interest Rate Risk The risk of an adverse impact on the Group's income statement due to changes in interest rates. Internal model approach The approach used to calculate market risk capital and risk-weighted assets with an internal market risk model approved by the Prudential Regulation Authority under the terms of CRD/CRR. - page 126 - Internal ratings-based approach (IRB) Risk-weighting methodology in accordance with the Basel Capital Accord where capital requirements are based on a firm's own estimates of prudential parameters. International Accounting Standard (IAS) A standard that forms part of the International Financial Reporting Standards framework. International Accounting Standards Board (IASB) An independent standard-setting body responsible for the development and publication of IFRS, and approving interpretations of IFRS that are recommended by the IFRS Interpretations Committee (IFRIC). International Financial Reporting Standards (IFRS) A set of international accounting standards developed and issued by the International Accounting Standards Board, consisting of principles-based guidance contained within IFRS and IAS. All companies that have issued publicly traded securities in the EU are required to prepare annual and interim reports under IFRS and IAS that have been endorsed by the EU. IFRIC The IFRS Interpretations Committee supports the IASB in providing authoritative guidance on the accounting treatment of issues not specifically dealt with by existing IFRS and IAS. Investment grade A debt security, treasury bill or similar instrument with a credit rating measured by external agencies of AAA to BBB. Leverage ratio A ratio introduced under CRD IV that compares Tier 1 capital to total exposures, including certain exposures held off-balance sheet as adjusted by stipulated credit conversion factors. Intended to be a simple, non-risk-based backstop measure. Liquidation portfolio A portfolio of assets which is beyond our current risk appetite metrics and is held for liquidation. Liquidity coverage ratio (LCR) The ratio of the stock of high-quality liquid assets to expected net cash outflows over the following 30 days. High-quality liquid assets should be unencumbered, liquid in markets during a time of stress and, ideally, be central bank eligible. Loan exposure Loans and advances to customers reported on the balance sheet held at amortised cost or FVOCI, non-cancellable credit commitments and cancellable credit commitments for credit cards and overdraft facilities. Loans and advances to banks Drawn amounts loaned to credit institutions including securities bought under Reverse repo. Loans and advances to customers This represents drawn lending made under bilateral agreements with customers entered into in the normal course of business and is based on the legal form of the instrument. Loans past due Loans on which payments have been due for up to a maximum of 90 days including those on which partial payments are being made. - page 127 - Loans subject to forbearance - impaired Loans where the terms have been renegotiated on terms not consistent with current market levels due to financial difficulties of the borrower. Loans in this category are necessarily impaired. See 'Forbearance'. Loan-to-value ratio (LTV) A calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. The loan-to-value ratio is used in determining the appropriate level of risk for the loan and therefore the correct price of the loan to the borrower. Loss given default (LGD) The percentage of an exposure that a lender expects to lose in the event of obligor default. Loss rate Uses an adjusted gross charge-off rate, developed using monthly write-off and recoveries over the preceding 12 months and total outstanding balances. Malus An arrangement that permits the Group to prevent vesting of all or part of the amount of an unvested variable remuneration award, due to a specific crystallised risk, behaviour, conduct or adverse performance outcome. Master netting agreement An agreement between two counterparties that have multiple derivative contracts with each other that provides for the net settlement of all contracts through a single payment, in a single currency, in the event of default on, or termination of, any one contract. Mezzanine capital Financing that combines debt and equity characteristics. For example, a loan that also confers some profit participation to the lender. Minimum requirement for own funds and eligible liabilities (MREL) A requirement under the Bank Recovery and Resolution Directive for EU resolution authorities to set a minimum requirement for own funds and eligible liabilities for banks, implementing the FSB's Total Loss Absorbing Capacity (TLAC) standard. MREL is intended to ensure that there is sufficient equity and specific types of liabilities to facilitate an orderly resolution that minimises any impact on financial stability and ensures the continuity of critical functions and avoids exposing taxpayers to loss. Net asset value (NAV) per share Ratio of net assets (total assets less total liabilities) to the number of ordinary shares outstanding at the end of a reporting period. Net interest income (NII) The difference between interest received on assets and interest paid on liabilities. Net stable funding ratio (NSFR) The ratio of available stable funding to required stable funding over a one-year time horizon, assuming a stressed scenario. It is a longer-term liquidity measure designed to restrain the amount of wholesale borrowing and encourage stable funding over a one-year time horizon. Net zero The commitment to reaching net zero carbon emissions from our operations by 2025 and from our financing by 2050. - page 128 - Non-linearity Non-linearity of expected credit loss occurs when the average of expected credit loss for a portfolio is higher than the base case (median) due to the fact that bad economic environment could have a larger impact on ECL calculation than good economic environment. Non-performing loans (NPLs) An NPL is any loan that is more than 90 days past due or is otherwise individually impaired. All NPLs are reported as part of Stage 3. Normalised items Refer 'Underlying/Normalised' in the Alternative performance measures section. Operating expenses Staff and premises costs, general and administrative expenses, depreciation and amortisation. Underlying operating expenses exclude expenses as described in 'Underlying earnings'. A reconciliation between underlying and reported earnings is contained in Note 2 to the financial statements. Operating income or operating profit Net interest, net fee and net trading income, as well as other operating income. Underlying operating income represents the income line items above, on an underlying basis. See 'Underlying earnings'. Over-the-counter (OTC) derivatives A bilateral transaction (e.g. derivatives) that is not exchange traded and that is valued using valuation models. Own credit adjustment (OCA) An adjustment to the Group's issued debt designated at fair value through profit or loss that reflects the possibility that the Group may default and not pay the full market value of the contracts. Physical risks The risk of increased extreme weather events including flood, drought and sea level rise. Pillar 1 The first pillar of the three pillars of the Basel framework which provides the approach to calculation of the minimum capital requirements for credit, market and operational risk. Minimum capital requirements are 8 per cent of the Group's risk-weighted assets. Pillar 2 The second pillar of the three pillars of the Basel framework which requires banks to undertake a comprehensive assessment of their risks and to determine the appropriate amounts of capital to be held against these risks where other suitable mitigants are not available. Pillar 3 The third pillar of the three pillars of the Basel framework which aims to provide a consistent and comprehensive disclosure framework that enhances comparability between banks and further promotes improvements in risk practices. Priority Banking Priority Banking customers are individuals who have met certain criteria for deposits, AUM, mortgage loans or monthly payroll. Criteria varies by country. - page 129 - Private equity investments Equity securities in operating companies generally not quoted on a public exchange. Investment in private equity often involves the investment of capital in private companies. Capital for private equity investment is raised by retail or institutional investors and used to fund investment strategies such as leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. Probability of default (PD) PD is an internal estimate for each borrower grade of the likelihood that an obligor will default on an obligation over a given time horizon. Probability weighted Obtained by considering the values the metric can assume, weighted by the probability of each value occurring. Profit (loss) attributable to ordinary shareholders Profit (loss) for the year after non-controlling interests and dividends declared in respect of preference shares classified as equity. Prudent valuation adjustment (PVA) An adjustment to CET1 capital to reflect the difference between fair value and prudent value positions, where the application of prudence results in a lower absolute carrying value than recognised in the financial statements. Prudential Regulation Authority (PRA) The Prudential Regulation Authority is the statutory body responsible for the prudential supervision of banks, building societies, credit unions, insurers and a small number of significant investment firms in the UK. The PRA is a part of the Bank of England. Regulatory consolidation The regulatory consolidation of Standard Chartered PLC differs from the statutory consolidation in that it includes Akashaverse Pte. Ltd, ASCENTA IV, CFZ Holding Limited and its subsidiaries, Global Digital Asset Holdings Limited, Olea Global Pte. Ltd and its subsidiaries, Partior Holdings Pte. Ltd, SBI Zodia Custody Co. Ltd, Seychelles International Mercantile Banking Corporation Limited, and Vault22 Solutions Holdings Ltd on a proportionate consolidation basis. These entities are equity consolidated for statutory accounting purposes. The regulatory consolidation further excludes the following entities, which are consolidated for statutory accounting purposes: Appro marketing solutions L.L.C, Audax Financial Technology Pte. Ltd, Furaha Finserve Uganda Limited, Letsbloom India Private Limited, Letsbloom Pte. Ltd , PointSource Technologies Pte. Ltd, PT Labamu Sejahtera Indonesia, Qatalyst Pte. Ltd, Qlarion Ltd, Regwise Ltd, SCV Research and Development Pte. Ltd., SCV Research and Development Pvt. Ltd., Solv Vietnam Company Limited, Solvezy Technology Ghana Ltd, Solvezy Technology Kenya Ltd, Standard Chartered Assurance Limited, Standard Chartered Bancassurance Intermediary Limited, Standard Chartered Bank Insurance Agency (Proprietary) Limited, Standard Chartered Botswana Education Trust, Standard Chartered Isle of Man Limited , TASConnect (Hong Kong) Private Limited, TASConnect (Malaysia) Sdn. Bhd, and TASConnect (Shanghai) Financial Technology Pte. Ltd. Repo/reverse repo A repurchase agreement or repo is a short-term funding agreement, which allows a borrower to sell a financial asset, such as asset-backed securities or government bonds as collateral for cash. As part of the agreement the borrower agrees to repurchase the security at some later date, usually less than 30 days, repaying the proceeds of the loan. For the party on the other end of the transaction (buying the security and agreeing to sell in the future), it is a reverse repurchase agreement or reverse repo. Residential mortgage A loan to purchase a residential property which is then used as collateral to guarantee repayment of the loan. The borrower gives the lender a lien against the property, and the lender can foreclose on the property if the borrower does not repay the loan per the agreed terms. Also known as a home loan. - page 130 - Return on risk-weighted assets (RoRWA) Profit before tax for year as a percentage of RWA. Profit may be statutory or underlying and is specified where used. See 'RWA' and 'Underlying earnings'. Revenue-based carbon intensity A measurement of the quantity of greenhouse gases emitted by our clients per USD of their revenue. Risk-weighted assets (RWA) A measure of a bank's assets adjusted for their associated risks, expressed as a percentage of an exposure value in accordance with the applicable standardised or IRB approach provisions. Risks not in VaR (RNIV) A framework for identifying and quantifying marginal types of market risk that are not captured in the Value at Risk (VaR) measure for any reason, such as being a far-tail risk, or the necessary historical market data not being available. Roll rate Uses a matrix that gives average loan migration rate from delinquency states from period to period. A matrix multiplication is then performed to generate the final PDs by delinquency bucket over different time horizons. Scope 1 emissions Arise from the consumption of energy from direct sources during the use of property occupied by the Group. On-site combustion of fuels such as diesel, liquefied petroleum gas and natural gas is recorded using meters or, where metering is not available, collated from fuel vendor invoices. Emissions from the combustion of fuel in Group-operated transportation devices, as well as fugitive emissions, are excluded as being immaterial. Scope 2 emissions Arise from the consumption of indirect sources of energy during the use of property occupied by the Group. Energy generated off-site in the form of purchased electricity, heat, steam or cooling is collected as kilowatt hours consumed using meters or, where metering is not available, collated from vendor invoices. For leased properties we include all indirect and direct sources of energy consumed by building services (among other activities) within the space occupied by the Group. This can include base building services under landlord control but over which we typically hold a reasonable degree of influence. All data centre facilities with conditioning systems and hardware remaining under the operational control of the Group are included in the reporting. This does not include energy used at outsourced data centre facilities which are captured under Scope 3. Scope 3 emissions Occur as a consequence of the Group's activities but arising from sources not controlled by the Group. Business air travel data is collected as person kilometres travelled by seating class by employees of the Group. Data is drawn from country operations that have processes in place to gather accurate employee air travel data from travel management companies. Flights are categorised as short, medium or long haul trips. Emissions from other potential Scope 3 sources such as electricity transmission and distribution line losses are not currently accounted for on the basis that they cannot be calculated with an acceptable level of reliability or consistency. The Group does however capture Scope 3 emissions from outsourced data centres managed by third parties. Secured (fully and partially) A secured loan is a loan in which the borrower pledges an asset as collateral for a loan which, in the event that the borrower defaults, the Group is able to take possession of. All secured loans are considered fully secured if the fair value of the collateral is equal to or greater than the loan at the time of origination. All other secured loans are considered to be partially secured. - page 131 - Securitisation Securitisation is a process by which credit exposures are aggregated into a pool, which is used to back new securities. Under traditional securitisation transactions, assets are sold to a structured entity which then issues new securities to investors at different levels of seniority (credit tranching). This allows the credit quality of the assets to be separated from the credit rating of the originating institution and transfers risk to external investors in a way that meets their risk appetite. Under synthetic securitisation transactions, the transfer of risk is achieved by the use of credit derivatives or guarantees, and the exposures being securitised remain exposures of the originating institution. Senior debt Debt that takes priority over other unsecured or otherwise more 'junior' debt owed by the issuer. Senior debt has greater seniority in the issuer's capital structure than subordinated debt. In the event the issuer goes bankrupt, senior debt theoretically must be repaid before other creditors receive any payment. Significant increase in credit risk (SICR) Assessed by comparing the risk of default of an exposure at the reporting date to the risk of default at origination (after considering the passage of time). Solo The solo regulatory group as defined in the Prudential Regulation Authority waiver letter dated 10 August 2020 differs from Standard Chartered Bank Company in that it includes the full consolidation of nine subsidiaries, namely Standard Chartered Holdings (International) B.V., Standard Chartered MB Holdings B.V., Standard Chartered UK Holdings Limited, Standard Chartered Grindlays PTY Limited, SCMB Overseas Limited, Standard Chartered Capital Management (Jersey) LLC, Cerulean Investments L.P., SC Ventures Innovation Investment L.P. and SC Ventures G.P. Limited. Sovereign exposures Exposures to central governments and central government departments, central banks and entities owned or guaranteed by the aforementioned. Sovereign exposures, as defined by the European Banking Authority, include only exposures to central governments. Stage 1 Financial assets within the scope of IFRS 9 ECL that have not experienced a significant increase in credit risk since origination and impairment recognised on the basis of 12 months expected credit losses. Stage 2 Financial assets within the scope of IFRS 9 ECL that have experienced a significant increase in credit risk since origination and impairment is recognised on the basis of lifetime expected credit losses. Stage 3 Financial assets within the scope of IFRS 9 ECL that are in default and considered credit-impaired (non-performing loans). Standardised approach In relation to credit risk, a method for calculating credit risk capital requirements using External Credit Assessment Institution (ECAI) ratings and supervisory risk weights. In relation to operational risk, a method of calculating the operational capital requirement by the application of a supervisory defined percentage charge to the gross income of eight specified business lines. Structured note An investment tool which pays a return linked to the value or level of a specified asset or index and sometimes offers capital protection if the value declines. Structured notes can be linked to equities, interest rates, funds, commodities and foreign currency. - page 132 - Subordinated liabilities Liabilities which, in the event of insolvency or liquidation of the issuer, are subordinated to the claims of depositors and other creditors of the issuer. Sustainability aspirations A series of targets and metrics by which we aim to promote social and economic development, and deliver sustainable outcomes in the areas in which we can make the most material contribution to the delivery of the UN Sustainable Development Goals. Sustainable Finance assets Assets from clients whose activities are aligned with the Green and Sustainable Product Framework and/or from transactions for which the use of proceeds will be utilised directly to contribute towards eligible themes and activities set out within the Green and Sustainable Product Framework. Sustainable Finance revenue Revenue from clients whose activities are aligned with the Green and Sustainable Product Framework and/or from transactions for which proceeds will be utilised directly to contribute towards eligible themes and activities set out within the Green and Sustainable Product Framework and/or from approved 'labelled' transactions such as any transaction referred to as 'green', 'social', 'sustainable', 'SDG (sustainable development goal) aligned', 'ESG', 'transition', 'COVID-19 facility' or 'COVID-19 response' which have been approved by the Sustainable Finance Governance Committee. Tier 1 capital The sum of Common Equity Tier 1 capital and Additional Tier 1 capital. Tier 1 capital ratio Tier 1 capital as a percentage of risk-weighted assets. Tier 2 capital Tier 2 capital comprises qualifying subordinated liabilities and related share premium accounts. Total loss absorbing capacity (TLAC) An international standard for TLAC issued by the FSB, which requires G-SIBs to have sufficient loss-absorbing and recapitalisation capacity available in resolution, to minimise impacts on financial stability, maintain the continuity of critical functions and avoid exposing public funds to loss. Transition risks The risk of changes to market dynamics or sectoral economics due to governments' response to climate change. UK bank levy A levy that applies to certain UK banks and the UK operations of foreign banks. The levy is payable each year based on a percentage of the chargeable equities and liabilities on the Group's UK tax resident entities' balance sheets. Key exclusions from chargeable equities and liabilities include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain sovereign debt and liabilities subject to netting. Unbiased Not overly optimistic or pessimistic, represents information that is not slanted, weighted, emphasised, de-emphasised or otherwise manipulated to increase the probability that the financial information will be received favourably or unfavourably by users. - page 133 - Unlikely to pay Indications of unlikeliness to pay shall include: placing the credit obligation on non-accrued status; the recognition of a specific credit adjustment resulting from a significant perceived decline in credit quality subsequent to the Group taking on the exposure; selling the credit obligation at a material credit-related economic loss; the Group consenting to a distressed restructuring of the credit obligation where this is likely to result in a diminished financial obligation caused by the material forgiveness, or postponement, of principal, interest or, where relevant fees; filing for the obligor's bankruptcy or a similar order in respect of an obligor's credit obligation to the Group; the obligor has sought or has been placed in bankruptcy or similar protection where this would avoid or delay repayment of a credit obligation to the Group. Value at Risk (VaR) A quantitative measure of market risk estimating the potential loss that will not be exceeded in a set time period at a set statistical confidence level. Value in Use (ViU) The present value of the future expected cash flows expected to be derived from an asset or CGU. - page 134 - CONTACT INFORMATION Global headquarters Standard Chartered Group 1 Basinghall Avenue London, EC2V 5DD United Kingdom telephone: +44 (0)20 7885 8888 Investor Relations For further information, please contact: Manus Costello, Global Head of Investor Relations +44 (0) 20 7885 0017 [email protected] 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 LSE Stock code: STAN.LN HKSE Stock code: 02888 - page 135 - 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 IR DZGFNGMLGKZG

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