Standard Chartered Plc has recommended an interim dividend for HY 2022 of $119 million or 4 cents per share on 14 October 2022 to shareholders on the UK register of members at the close of business in the UK on 12 August 2022.
Other Financial Highlights:
• Return on tangible equity of 10.1%, up 20bps on 1H'21
• Income up 8% to $8.2bn, up 10% at constant currency (ccy) and excluding debit valuation adjustment (DVA) and normalising for the 2021 IFRS9 interest rate adjustment
- Net interest income up 12% at ccy
- Record half in Financial Markets, up $0.5bn or 18% at ccy and excluding DVA
- Continued positive momentum in Transaction Banking with income up 14% at ccy
- Wealth Management down $0.2bn or 16% at ccy
- 2Q'22 income up 6% YoY, or up 11% at ccy excluding DVA and normalising for the 2021 IFRS9 interest rate adjustment
- 2Q'22 Net interest margin (NIM) up 6bps QoQ to 1.35%, from rising interest rates
• Expenses increased 4% YoY to $5.3bn, or up 7% at ccy and up 6% at ccy excluding higher performance-related-pay accruals
- $199m gross expense savings more than offsetting increased investment spend in strategic initiatives and in Ventures
- Positive 2% income-to-cost jaws at ccy and excluding DVA, cost-to-income ratio down to 65%
• Credit impairment charge of $267m, up $314m YoY; 2Q'22 down $133m QoQ
- Includes $237m relating to China CRE stage 3 exposures and $70m for the foreign currency sovereign grading downgrade of Sri Lanka
- Management overlay down $129m in 1H'22; total now $216m; COVID-19 overlay $90m and China CRE overlay $126m
- High-risk assets up $0.4bn in 1H'22, driven by an increase in Early Alert accounts
• Underlying profit before tax up 7% at ccy to $2.8bn; statutory profit before tax up 10% at ccy to $2.8bn
• Tax charge of $684m: underlying effective tax rate of 24.6% up 0.5%pts due to a change in the geographic mix of profits
• The Group's balance sheet remains liquid and well diversified
- Customer loans and advances down $2bn or 1% since 31.03.22, up $5bn or 2% excluding FX and RWA optimisation actions
- Advances-to-deposit ratio 59.6% (31.03.22: 60.0%); liquidity coverage ratio 142% (31.03.22: 140%)
• Risk-weighted assets (RWA) of $255bn down $16bn since 31.12.21
- Credit RWA down $14bn: $8bn of asset growth & mix, $6bn adverse regulatory changes, offset by $14bn efficiency actions, $8bn favourable FX impact and $6bn positive credit migration
- Market risk RWA down $2bn to $23bn; Operational risk RWA broadly flat
