Standard Chartered PLC - Highlights
For the year ended 31 December 2014
Reported results
Operating income of $18,234 million is down 2 per cent from 2013
Profit before tax of $5,193 million is down 25 per cent from 2013
Customer advances down 3 per cent to $289 billion, customer deposits up 6 per cent to $414 billion
Performance metrics
Dividend per share at 86.00 cents per share, the same level as 2013
Normalised earnings per share declined 28 per cent to 145.9 cents from 204.0 cents in 2013
Normalised return on ordinary shareholders' equity of 7.8 per cent (2013: 11.2 per cent)
Capital and liquidity metrics
Common Equity Tier 1 (CET 1) of 10.7 per cent on an end point basis under CRD IV rules5, 10.5 per cent on a transitional basis
Advances-to-deposits ratio of 69.7 per cent (2013: 75.7 per cent)
Liquid asset ratio of 32.2 per cent (2013: 29.8 per cent)
Key messages
2014 performance impacted by the challenging market environment, de-risking and disposal actions
Loan impairment increased 32 per cent primarily in Corporate and Institutional and Commercial Clients
Reallocated $8.5 billion risk weighted assets from low returning relationships and announced 15 business disposals
Strong balance sheet with healthy liquidity, leverage, and capital ratios
Programme of actions
Significant leadership changes
CET1 target of 11-12 per cent in 2015 and thereafter
Return on Equity target greater than 10 per cent in the medium term
$1.8 billion of cost savings over the next 3 years
$25 - $30 billion in Risk Weighted Assets savings over the next 2 years
Sustain momentum on raising the bar on conduct
Commenting on these results, the Chairman of Standard Chartered PLC, Sir John Peace, said:
"2014 was a challenging year and our performance was disappointing, but it was also a year when we took decisive action to refocus our strategy and to reposition the Group for the future and to restore shareholder value."
Commenting on these results, the Chief Executive Officer of Standard Chartered PLC, Peter Sands, said:
"We are reshaping the Bank to respond to the way our world has changed and to ensure we fulfil our aspiration to bank the people and companies driving trade, investment and the creation of wealth across Asia, Africa and the Middle East. I leave Standard Chartered proud of what we have achieved and confident about what the future holds for this extraordinary institution"
