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Standard Chartered Bank
Reference Number ZC18
Directors’ Report and
Financ
ial Statements
31 December 2024
Incorporated in England with lim
ited l
iab
il
ity by Royal Charter 1853
Princ
ipal Ofﬁce: 1 Bas
inghall Avenue, London, EC2V 5DD, England
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
Contents
Page
Strategic report
01-35
Who we are and what we do
02
Where we operate
05
Market environment
06
Our strategy
09
Our business model
10
Client Segment reviews
12
Financ
ial rev
iew
14
Our business
18
Risk review
19
Stakeholders and responsib
il
it
ies
26
Directors’ report
36-42
Statement of directors’ responsib
il
it
ies
43
Risk review and Capital review
44-110
Risk Management Framework
45
Princ
ipal r
isks
50
Risk proﬁle
58
Capital review
109
Financ
ial Statements and Notes
111-244
Independent Auditors’ report
111
Financ
ial statements
123
Notes to the ﬁnancial statements
130
Supplementary
245
Glossary
252
About this report
Sustainab
il
ity reporting – We adopt an integrated approach to corporate reporting, embedding non-ﬁnanc
ial
informat
ion throughout our Annual Report.
For more informat
ion on Standard Chartered please v
is
it sc.com
linked
in.com/company/standard-chartered-bank
facebook.com/standardchartered
Unless another currency is specif
ied, 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. All disclosures in the Strategic Report, Directors’ Report, Risk Review and Capital Review, Supplementary informat
ion and Glossary are unaud
ited unless
otherwise stated. Unless context requires, with
in th
is document, ‘China’ refers to the People’s Republic of China and, for the purposes of this document only, excludes Hong
Kong Special Admin
istrat
ive Region (Hong Kong), Macau Special Admin
istrat
ive Region (Macau) and Taiwan. ‘Korea’ or ‘South Korea’ refers to the Republic of Korea.
Asia includes Australia, Bangladesh, Brunei, Cambodia, India, Indonesia, Laos, Malaysia, Myanmar, Nepal, Phil
ipp
ines, Singapore, Sri Lanka, Thailand, Vietnam,
Mainland China, Hong Kong, Japan, Korea, Macau, Taiwan; Africa includes Botswana, Côte d’Ivoire, Egypt, Ghana, Kenya, Maurit
ius, N
iger
ia, South Afr
ica, Tanzania, UAE,
Uganda, and Zambia. The Middle East includes Bahrain, Iraq, Oman, Pakistan, Qatar, Saudi Arabia and UAE. Europe includes Belgium, Falkland Islands, France, Germany,
Jersey, Luxembourg, Poland, Sweden, Türkiye and the UK. The Americas includes Argentina, Brazil, Colombia and the US.
With
in the tables
in this report, blank spaces ind
icate that the number
is not disclosed, dashes ind
icate that the number
is zero and ‘nm’ stands for not meaningful.
Standard Chartered Bank is incorporated in England and Wales with lim
ited l
iab
il
ity and is headquartered in London. The Group’s head ofﬁce provides guidance on
governance and regulatory standards.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
1
Strategic report
Combin
ing cross-border capab
il
it
ies with wealth management expertise
Standard Chartered is a global bank connecting corporate, inst
itut
ional and afﬂuent clients to a network that offers
unique access to sustainable growth opportunit
ies across As
ia, Africa and the Middle East.
Our cross-border and afﬂuent strategy is designed to deliver our purpose: to drive commerce and prosperity through
our unique divers
ity.
This is underpinned by our brand promise, here for good.
The following are company designat
ions as descr
ibed in the document:
Standard Chartered Bank Group (Group) – being Standard Chartered Bank and its subsid
iar
ies
Standard Chartered PLC Group (PLC Group) – being the ultimate parent and its subsid
iar
ies
Standard Chartered Bank (Company) – being the standalone Bank legal entity
Standard Chartered PLC (PLC) – being the standalone legal entity of the ultimate parent
FINANCIAL KPIs AND MEASURES
1
Operating income
$12,414m
7%
Read more on (page 15)
Proﬁt before tax
$4,447m
1%
Read more on (page 15)
CAPITAL KPIs
Common Equity Tier 1 ratio
13.3%
12bps
2
Read more on (page 17)
NON-FINANCIAL KPIs
Divers
ity and
inclus
ion: Women
in senior roles
3
29.6%
+0.4ppt
1
KPIs have been updated to move to a greater use of reported measures, in line with how the Group is run
2
Basis point (bps) and percentage movements are in relation to 31 December 2023, with brackets representing negative movements
3
Senior leadership is deﬁned as Managing Directors and Band 4 roles (includ
ing Management Team)
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
2
Strategic report continued
Who we are and what we do
We serve three client segments, with support from seven global functions.
Our client segments
Corporate & Investment Banking (CIB)
Corporate & Investment Banking supports large
corporations, development organisat
ions, governments,
banks and investors to access cross-border trade and
investment opportunit
ies
in the world’s most dynamic
markets.
Operating income
$8,531m
Wealth & Retail Banking (WRB)
Wealth & Retail Banking serves the local and internat
ional
banking needs of afﬂuent clients across the full wealth
continum via Private, Prior
ity and Personal Bank
ing, as well
as Small and Medium Enterprises.
Operating income
$3,706m
Ventures
Ventures invests in disrupt
ive ﬁnancial technology and
creating alternative ﬁnanc
ial serv
ice business models,
promoting a culture of innovat
ion across the Group.
Operating income
$86m
Central and other items
Operating income
$91m
Total operating income
$12,414m
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
3
Enabling and supporting our businesses
Global functions
Our client-facing businesses are supported by our global functions, which work together to ensure the Group’s operations
run smoothly and consistently.
Group Chief Financ
ial Ofﬁce (GCFO)
Partners with the business and collaborates with other functions to execute on the Group strategy. GCFO comprises of four
areas, namely, Finance, Treasury, Investor Relations and Corporate Development.
Strategy and Talent
Brings together the Corporate Strategy, Group-wide Transformation, Corporate Affairs, Brand & Marketing, Corporate
Real Estate Services, Human Resources, Supply Chain Management and Fit for Growth programme teams. The teams
play a crit
ical role
in how we execute and communicate our strategy and develop and deploy our skills and resources to
transform the Bank and achieve sustainable growth.
Technology & Operations
Responsible for reshaping the Group’s systems and technology platforms to ensure we provide robust, responsive, and
innovat
ive technology and d
ig
ital solut
ions. Also manages all client operations, seeking to provide an optimal client service
and experience across the board.
Group Internal Audit
An independent function with the primary role of supporting the Court and Management Team, and protect the assets,
reputation and sustainab
il
ity of the Group.
Compliance, Financ
ial Cr
ime & Conduct Risk
Partners internally and externally to achieve the highest standards in conduct and compliance to enable a sustainable
business and to ﬁght ﬁnanc
ial cr
ime.
Legal
Provides legal advice and support to the Group in managing legal risks and issues.
Risk
Provides oversight and challenge on the Group’s risk management, ensuring that business is conducted in line with regulatory
expectations
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
4
Strategic report continued
Our purpose and our strategy
Our purpose is to drive commerce and prosperity through our unique divers
ity. Our strategy
is combin
ing d
ifferent
iated
cross-border corporate and investment banking capabil
it
ies with leading wealth management expertise.
> Read more on
Our strategy
, page 10.
Our culture
We’ve been supporting clients ever since we ﬁrst opened our doors in Mumbai, Kolkata and Shanghai in 1853
and – with our focus on cross-border banking and helping generations of famil
ies grow the
ir wealth– we remain the bank we
set out to be over 170 years ago.
Our dist
inct
ive culture has been developed in pursuit of our purpose, deliver
ing
innovat
ive solut
ions that create
long-term value for our clients and the communit
ies w
ith
in wh
ich we operate.
We’re committed to promoting equality and inclus
ion, as
it’s our divers
ity – of people, cultures and networks –
that sets us apart and helps us ﬁnd opportunit
ies at every turn.
We are guided by our valued behaviours, our Stands and our brand promise, here for good.
Valued behaviours
Our valued behaviours are key to deliver
ing on our strategy. As the gu
id
ing pr
inc
iples for the way we do bus
iness every day,
they help us learn from our successes and take on new challenges.
When we live our valued behaviours, we question, innovate and make bold decis
ions, allow
ing us to take opportunit
ies to
go above and beyond for our clients.
Do the right thing
Doing the right thing means acting in the best interests of our clients, colleagues and stakeholders.
Better together
We build relationsh
ips w
ith our clients and each other so we can share our unique capabil
it
ies.
Never settle
We’re ambit
ious
in our constant pursuit of excellence and market-leading innovat
ion.
Our Stands
We set long-term ambit
ions to address some of the most press
ing societal challenges of our time.
Climate change, deepening inequal
ity and the
inequ
it
ies of globalisat
ion rema
in as urgent today as ever before.
• Accelerating Zero
• Lift
ing Part
ic
ipat
ion
• Resetting Globalisat
ion
+ Read more on Our Stands at
sc.com/en/about/who-we-are/
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
5
Where we operate
We operate in the world’s most dynamic markets which set the pace for global growth and prosperity.
Our unique geographic footprint connects high-growth and emerging markets in Asia, Africa and the Middle East with more
established economies in Europe and the Americas, allowing us to channel capital where it’s needed most.
For more than 170 years we have used the power of our network to maxim
ise opportun
it
ies for people and bus
inesses
who trade, operate, or invest in these regions. Our diverse experience, capabil
it
ies and culture sets us apart.
Asia
Australia
Japan
Singapore
Bangladesh
Laos
Sri Lanka
Brunei
Macau
Taiwan
Cambodia
Malaysia
Thailand
China
Myanmar
Vietnam
India
Nepal
Indonesia
Phil
ipp
ines
Africa
Botswana
Kenya
Tanzania
Cote d’Ivoire
Maurit
ius
Uganda
Egypt
Niger
ia
Zambia
Ghana
South Africa
The Middle East
Bahrain
Pakistan
UAE
Iraq
Qatar
Oman
Saudi Arabia
Europe
Belgium
Jersey
Türkiye
Falkland Islands
Luxembourg
UK
France
Poland
Germany
Sweden
Americas
Argentina
Colombia
Brazil
US
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
6
Market environment
Global macro trends: Macroeconomic factors affecting the global landscape
Trends in 2024
•
Global GDP growth held at 3.2% in 2024, the same as 2023, as central banks began to loosen policy in the face of
declin
ing
inﬂat
ion.
•
Asia was the best-performing region, recording growth of 5.0% as ASEAN economies in particular were supported by
improv
ing tour
ism and the semiconductor upcycle. Growth in China was slower relative to 2023, but appeared to have
accelerated in Q4 helped by policy support. Growth in India normalised to 6.2% from 8.2% in 2023.
•
Sub-Saharan Africa likely saw growth of 3.4% in 2024, an improvement from 3.1% in 2023, supported by easing global
ﬁnancial cond
it
ions, the reg
ion’s continued recovery from COVID-19 cris
is and country-spec
if
ic factors.
•
Among the majors, the US economy remained resil
ient, w
ith growth improv
ing to 2.7% from 2.5%
in 2023, led by personal
consumption, despite recent signs of softening in the labour market. Growth also recovered in the UK to 0.8% in 2024 as
inﬂat
ion fell and
investment levels recovered. The euro-area economy grew by 0.7 per cent in 2024, following 0.4 per cent
growth in 2023, as growth was constrained by a subdued consumer recovery and weak investment. In most majors, labour
markets remained strong, but there are signs of softening.
•
Major central banks like the Fed and ECB started to loosen monetary policy from mid-2024 onwards as inﬂat
ion showed
clearer signs of returning to target levels, while ﬁscal policy remained accommodative in the US.
Outlook for 2025
•
We expect global economic growth to be broadly ﬂat in 2025, slowing slightly to 3.1% from 3.2% in 2024. Support from
looser ﬁnancial cond
it
ions and expans
ionary ﬁscal policy may be partly offset by protection
ist trade pol
ic
ies and st
ill-high
interest rates in the US and elsewhere.
•
The US economy is set to moderate in 2025, after a resil
ient 2024 performance desp
ite elevated interest rates. The euro
area continues to struggle; major European economies includ
ing Germany and France r
isk slipp
ing
into recession. Asia is
relatively healthy, although growth at the regional level is set to moderate slightly in 2025 as both China and India slow. The
GCC should also remain a bright spot for global growth, with the region’s non-oil growth exceeding overall global growth.
•
The global economy is facing heightened uncertainty following the US elections. The risk of a tit-for-tat tariff war has
increased with US tariffs on China already resulting in retaliatory tariffs on US imports. The US is also threatening to impose
tariffs on its other trading partners. Tariff wars are likely to result in further trade divers
ion and a reor
ientat
ion of supply
chains.
•
Expectations of a shallower rate cutting cycle from the Fed is likely to translate into a stronger USD and a steeper
US yield curve. Higher US rates and a stronger USD will make it harder for EM issuers to borrow in internat
ional cap
ital
markets, and could sign
iﬁcantly reduce portfol
io ﬂows to EM. In addit
ion, EM central banks may be constra
ined from
cutting rates meaningfully.
•
On the geopolit
ical front, markets w
ill be eager to see if President Trump is able to end the wars in Ukraine and the
Middle East, which would have far-reaching consequences globally.
Medium-and long-term view
Broader global trends
•
Long-term growth in the developed world is constrained by ageing populations and high levels of debt.
•
Ris
ing nat
ional
ism, ant
i-globalisat
ion and protect
ion
ism are threats to long-term growth prospects
in emerging markets.
•
However, there are potential offsets. Higher capex to meet sustainab
il
ity targets, and moves towards dig
ital
isat
ion could
boost productiv
ity growth, prov
ing an antidote to economic scarring concerns. With
in emerg
ing markets, countries in
Asia are best placed to take advantage of dig
ital
isat
ion,
includ
ing generat
ive Artif
ic
ial Intelligence (AI).
•
Relatively younger populations, and the adoption of dig
ital technology, w
ill allow emerging markets to become
increas
ingly
important to global growth.
•
In order to meet net zero targets, energy-related spending will have to increase sign
iﬁcantly; headw
inds include
insuff
ic
ient funds across emerging markets, labour shortages and supply chain constraints.
The world under Trump 2.0
•
Trump’s victory in the US elections is likely to have sign
iﬁcant
impl
icat
ions for the exist
ing geopol
it
ical env
ironment.
His reject
ion of mult
ilateral
ism and preference for an adversar
ial approach has impl
icat
ions for global climate policy,
the UN, Bretton Woods inst
itut
ions, and US relations with the EU.
•
Trump has pledged to use import tariffs to reduce the US trade deﬁc
it and br
ing production back to the US. While this
process has begun, uncertainty around the scope and extent of tariff action from the US and likely retaliat
ion by trade
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
7
partners might act as drags on consumer and investor conﬁdence, slowing growth.
•
Global trade has remained resil
ient
in the face of ris
ing protect
ion
ism over the past decade. However, an escalat
ion in
tit-for-tat tariff wars has the potential not only to accelerate the reorientat
ion of supply cha
ins already under way but also
lead to lower global trade overall.
•
Expectations of spending on defence and infrastructure together with possible tax cuts is likely to be inﬂat
ionary and could
see the Fed terminal rate settling at a higher level than in the pre-pandemic period.
•
This would sign
iﬁcantly change the global fund
ing environment for emerging markets. The external funding environment
for emerging markets will likely be tougher as US Money Market rates could stay elevated with a higher Fed terminal rate.
•
Emerging market economies that are more domestically driven and have better ﬁscal and monetary buffers to offset
external shocks are likely to be more resil
ient to external shocks.
Regional outlooks
Actual and projected growth by market
2025
2024
Asia
China
4.5%
5.0%
Hong Kong
2.2%
2.5%
India
6.5%
6.2%
Indonesia
5.0%
5.0%
Singapore
2.5%
3.8%
Americas
US
1.8%
2.7%
Africa
Niger
ia
3.8%
3.5%
South Africa
2.0%
1.1%
Kenya
4.7%
4.5%
Middle East
UAE
5.0%
4.0%
Europe
UK
1.3%
0.8%
Euro area
0.8%
0.7%
Asia
•
China is likely to bear the brunt of US tariff policy, with in
it
ial US tariffs being met by retaliatory tariffs from China. The
authorit
ies are prepar
ing for the potential fallout by deliver
ing add
it
ional st
imulus to support the domestic economy. In late
September, China pivoted toward more aggressive policy easing that helped generate a Q4 rebound. In December, the top
planning meeting adopted a pro-growth stance for 2025, pledging to raise the deﬁc
it rat
io and loosen monetary policy.
The authorit
ies appear determ
ined to tap the policy space to offset a potentially sharp increase in the US tariffs, focusing
more on consumption than investment.
•
Net exports have contributed sign
iﬁcantly to Ch
ina’s growth in 2024; this contribut
ion
is expected to decline substantially
in 2025. However, the real-estate sector – which has weighed heavily on growth for the past few years – is likely to be less of
a drag in 2025 as supportive polic
ies take effect. Wh
ile the PBoC is expected to keep monetary policy loose, expansionary
ﬁscal policy will be the biggest source of support for 2025 growth, in our view. We expect China’s economy to grow 4.5% in
2025.
•
Hong Kong is likely to be disproport
ionally affected by outs
ized US trade measures targeted against China. The US-China
trade war under Trump 1.0 pushed Hong Kong to trade more with China and ASEAN (at the expense of trade with the
US and Europe); this secular trend could accelerate as global supply chains reorient around new US tariff threats. We
believe Hong Kong still has a key role to play as China’s ‘super-connector’ as South-South trade and investment links
expand in an increas
ingly fragmented world.
•
India’s growth has likely moderated to 6.2% in 2024 and 6.5% in 2025 down from 8.2% in 2023 owing to a cyclical slowdown
in urban demand, and delays in the private sector investment cycle. However, the likel
ihood of more measures to
improve
rupee liqu
id
ity, a shallow rate cutting cycle and a large income tax cut delivered in the recent budget are likely to provide a
ﬂoor. The government remains focused on ﬁscal consolidat
ion, albe
it gradually amid slowing domestic growth and
external uncertainty.
•
We expect growth in ASEAN to remain healthy but slow slightly in 2025 versus 2024 due to the effects of monetary
tighten
ing and the moderat
ing economic outlook for key trade partners – namely the US, the euro area and China.
Trade-reliant economies like Singapore, Vietnam, Malaysia and Thailand are exposed to US trade polic
ies. Even
if they are
not directly targeted by tariffs or other measures, Asia’s small, open economies could be hit by spillover from China in the
short term.
•
Larger and more domestically driven economies – includ
ing Ind
ia, Indonesia and the Phil
ipp
ines – may be less affected but
are not immune to a sign
iﬁcant h
it to China and/or global trade. Over the medium term, however, we expect ASEAN to
continue to attract strong FDI as investors seek to divers
ify the
ir operational capacity and tap new markets.
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
8
Strategic report continued
•
Asian central banks focused on FX stabil
ity are l
ikely to scale back their rate-cutting cycles due to sharply reduced Fed
easing expectations, the spectre of a stronger USD in 2025, and an uncertain Asian trade environment. For India, we
mainta
in our call for 50bps of rate cuts; we th
ink monetary policy will focus more on the growth and inﬂat
ion
impact of
US trade polic
ies than on FX concerns. For the reg
ion’s small, open economies, negative currency spillover may have less
inﬂuence on policy decis
ions
in the coming year. Singapore has already eased monetary policy in January and we expect
Thailand to lower rates further in 2025.
Americas
•
The US economy is likely to stay on a healthy footing, with layoffs remain
ing low and consumer and bus
iness sentiment
staying strong. Tighter ﬁnanc
ial cond
it
ions towards end-2024 could br
ing some growth softness in H1 2025 before
returning to trend in H2 2025.
•
Slowing growth and softening labour market should allow the Fed to continue with cautious easing.
•
Trade and ﬁscal polic
ies pledged by the
incom
ing adm
in
istrat
ion increase uncertainty around monetary policy decis
ions
in
the wider region; The Fed may have to tighten slightly in 2026 when the impact of stimulus and tariffs hits. A more
accommodative regulatory environment in the US could further boost investment sentiment and productiv
ity growth.
•
In Latin America, ris
ing ﬁscal r
isks have weighed on investor sentiment towards the region. High borrowing costs,
legislat
ive uncerta
inty and lacklustre growth momentum are likely to continue to challenge the ﬁscal outlook.
Africa
•
While escalating global trade tensions and higher UST yields are downside risks to SSA, stepped-up ﬁscal stimulus in China
may eventually support the region’s commodity-dependent economies. Sub-Saharan Africa trade dependency on the US
has declined in recent years, reﬂecting greater US energy self-sufﬁc
iency; the EU
is the region’s largest trading partner,
followed by China.
•
Domestic reform momentum remains strong in South Africa and Niger
ia, the reg
ion’s two largest economies; this may
provide a buffer against global uncertainty. South Africa’s Government of National Unity has invested sign
iﬁcant pol
it
ical
capital in ensuring that growth-boosting structural reforms yield meaningful div
idends. South Afr
ica may adopt a ﬁscal
rule in 2025, and eventually a lower inﬂat
ion target, as
it aims to regain its investment-grade status in the medium term.
Faster growth will be crit
ical to stab
il
is
ing South Africa’s debt.
•
Niger
ia has embarked on content
ious fuel subsidy and FX liberal
isat
ion reforms, trigger
ing h
igher inﬂat
ion. 2025 should
bring greater FX and price stabil
ity, as well as offshore
investor interest in Niger
ia’s local-currency debt market. However,
Niger
ia rema
ins exposed to a material decline in oil prices, which could negatively impact oil revenues and FX earnings.
•
2025 should also see the rehabil
itat
ion of economies that have recently concluded debt restructuring agreements.
While ﬁnal agreements with non-Eurobond creditors are still awaited in Zambia and Ghana, the economic outlook for
both countries is set to stabil
ise. Zamb
ia should see sign
iﬁcant growth ga
ins following a recent drought. Ghana’s inﬂat
ion
should stabil
ise somewhat after the country’s December 2024 elect
ions; post-election years are often characterised by
greater ﬁscal restraint (but also slower growth momentum).
•
While new external debt restructurings in the region look unlikely in 2025, liqu
id
ity pressures – and how they are navigated – will
be closely watched. Dependence on IFIs for liqu
id
ity support has increased in recent years in economies such as Kenya. Kenya is
now likely to focus on attracting greater private ﬂows, with a reliance on public-private partnerships to boost capital spending.
Middle East
•
Despite some pressure on the energy sector, we expect the Gulf Cooperation Council (GCC) to remain a bright spot for
global growth in 2025, with the region’s non-oil growth exceeding overall global economic growth. With the exceptions of
Saudi Arabia and Bahrain, most of the region’s ﬁscal breakeven oil prices remain low. In some cases they have declined; for
Oman, this has prompted consecutive credit rating upgrades. Investment in the non-oil sector will continue to drive
economic activ
ity
in 2025, while lower interest rates should beneﬁt interest rate-sensit
ive sectors such as hous
ing in Saudi
Arabia, the UAE and Qatar.
•
Lower geopolit
ical r
isk and supported oil prices should bode well for the MENA region in 2025. De-escalation of the regional
conﬂict should have posit
ive ram
if
icat
ions for external funding in Egypt and Lebanon. On the trade front, the GCC – and
the UAE in particular – will continue to beneﬁt from ris
ing South-South trade as global trade
is re-routed in a more
fragmented world.
Europe
•
The euro area economy is likely to struggle in the face of structural headwinds – includ
ing poor compet
it
iveness and h
igh
energy costs – as well as external pressures from possible US trade protection
ist measures. Wh
ile there are recession risks in
Germany and France, private consumption should help to keep overall European growth posit
ive as
interest rates fall and
labour markets remain tight. The ECB is set to continue cutting into accommodative territory as inﬂat
ion returns to target
and growth is weak. Fiscal policy is unlikely to offer a sign
iﬁcant ta
ilw
ind to growth as countr
ies must adhere to EU rules,
although ﬂexib
il
ity could be applied if growth weakens sign
iﬁcantly.
•
UK growth should be supported in 2025 as the Bank of England continues to cut interest rates and the government pursues
pro-growth reforms alongside an improvement in trading relations with the EU. However, the government is also likely to
tighten spending in the coming months, to ensure it keeps with
in
its own ﬁscal rules.
•
In Central and Eastern Europe, external spillovers weigh on domestic growth, while labour market tightness and ﬁscal
pressures delay central bank easing. President
ial elect
ions in Poland and legislat
ive elect
ions in Czechia this year pose
uncertainty for investors.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
9
Strategic report continued
Our strategy
Our strategy is designed to deliver our purpose: to drive commerce and prosperity through our unique divers
ity.
This is underpinned by our brand promise, here for good.
We are a global bank connecting corporate, inst
itut
ional and afﬂuent clients to a network that offers unique
access to sustainable growth opportunit
ies across As
ia, Africa and the Middle East.
Strategic prior
it
ies
Cross-border
•
Continue to sharpen our focus on serving the cross-border needs of our larger global corporate and ﬁnanc
ial
inst
itut
ion clients.
•
Concentrate our efforts on enhancing our cross-border product and advisory suite to meet our clients’ complex needs.
•
Optim
ise resource allocat
ion by reducing the number of clients whose needs do not play directly to our strengths.
•
Continue to scale sustainable ﬁnance and support to our clients’ transit
ion journeys across our markets.
Afﬂuent
•
Solid
ify our pos
it
ion as a lead
ing wealth manager in Asia, Africa and the Middle East with a different
iated, fast-grow
ing
and high-returning internat
ional afﬂuent franch
ise.
•
Invest in our wealth and dig
ital platforms, cl
ient centres, people and brand and marketing, to accelerate income
growth and returns.
•
Reshape our mass retail business to focus on developing a strong pipel
ine of future afﬂuent and
internat
ional
banking clients.
•
Enable access to sustainable investments by integrat
ing Env
ironmental, Social and Governance (ESG) into our Wealth
Solutions proposit
ions and leverag
ing bank-wide sustainab
il
ity capabil
it
ies as a key different
iator to our afﬂuent cl
ients.
Strategic report continued
Standard Chartered Bank
10
Directors’ Report and Financ
ial Statements 2024
Our Business model
Our business model reﬂects our strategy of combin
ing d
ifferent
iated cross-border capab
il
it
ies with leading wealth
management expertise.
Our business segments
Corporate & Investment Banking (CIB)
Supports large corporations, development organisat
ions, governments, banks and
investors to access cross-border trade
and investment opportunit
ies.
Wealth & Retail Banking (WRB)
Serves the local and internat
ional bank
ing needs of our clients across the full wealth continuum via Private, Prior
ity and
Personal Banking, as well as Small and Medium Enterprises.
Ventures
Promotes a culture of innovat
ion across the Group,
invest
ing
in disrupt
ive ﬁnancial technology and creat
ing alternative
ﬁnancial serv
ice business models, as well as growing Trust, our dig
ital bank
in Singapore.
Our key products and services
Global Markets & Global Banking
•
Macro, credit & commodit
ies trad
ing
• Lending & ﬁnanc
ial solut
ions
• Capital markets & advisory
Transaction Services
• Payments and liqu
id
ity solutions
• Trade & Working capital
• Securit
ies & pr
ime services
Wealth Solutions
• Investments
• Bancassurance
• Wealth advice
• Portfolio management
Retail Products
• Deposits
• Mortgages
• Credit cards
• Personal loans
Our sustainab
il
ity capabil
ity
is an integral part of our client offering across all our business segments,
and the Group as a whole.
Responsible business practices
•
We strive to be a responsible business by operational
is
ing our net zero targets, managing environmental and social risks,
and acting transparently.
Bespoke sustainable ﬁnance solutions
•
We offer sustainable ﬁnance solutions designed to help our clients address environmental and social challenges and
achieve sustainable growth.
Innovation in service of our markets
•
We advocate in service of our markets to unlock the areas where capital is not ﬂowing at scale or not at all and to drive
economic inclus
ion.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
11
Strategic report continued
Our resources provide the strong foundation that helps us deliver our strategy.
Human capital
Divers
ity d
ifferent
iates us;
it is in our Purpose statement. Deliver
ing our strategy rests on how we cont
inue to invest in our
people, the employee experience, and culture.
International network
Our network is our unique competit
ive advantage and connects corporates, ﬁnancial
inst
itut
ions, ind
iv
iduals and small and
medium enterprises across some of the world’s fastest-growing and most dynamic markets.
Local expertise
We are deeply rooted in the markets where we operate, offering us ins
ights that help our cl
ients achieve their ambit
ions
locally and across the borders.
Brand recognit
ion
We are a leading internat
ional bank
ing group with 170 years of history. In many of our markets, we are a household name.
Financ
ial strength
With our solid balance sheet and prudent ﬁnanc
ial management, we are a strong and trusted partner for our cl
ients.
Technology
Our strong dig
ital foundat
ions and leading technological capabil
it
ies continue to enable a data-driven dig
ital bank that
delivers world-class client service.
We create long-term value for a broad range of stakeholders.
Clients
We deliver banking solutions for our clients across our network, both dig
itally and
in person. We help ind
iv
iduals grow
their wealth while connecting corporates and ﬁnanc
ial
inst
itut
ions to opportunit
ies across our network.
Employees
We believe that great employee experience drives great client experience. We want all our people to pursue their ambit
ions,
deliver with purpose and have a rewarding career enabled by great people leaders.
Suppliers
We engage diverse suppliers, locally and globally, to provide efﬁc
ient and susta
inable goods and services for our business.
Investors
We aim to deliver robust returns and long-term sustainable value for our investors.
Regulators and governments
We play our part in supporting the effective function
ing of the ﬁnancial system and the broader economy by proact
ively
engaging with public authorit
ies.
Society
We strive to operate as a sustainable and responsible company, working with local partners to promote social and
economic development.
Strategic report continued
Standard Chartered Bank
12
Directors’ Report and Financ
ial Statements 2024
Client segment reviews
Corporate & Investment Banking
Proﬁt before taxation
$3,787m
Segment overview
Corporate & Investment Banking supports local and large corporations, governments, banks and investors with their
transaction services, banking and ﬁnanc
ial markets needs. We prov
ide different
iated cross-border capab
il
it
ies to clients in
some of the world’s fastest-growing economies and most active trade corridors. Our clients operate or invest in several
markets across the globe.
Our strong and deep local presence enables us to help co-create bespoke ﬁnancing solut
ions and connect our clients
multilaterally to investors, suppliers, buyers and sellers. Our products and services enable our clients to move capital, manage
risk and invest to create wealth. Our clients represent a large and important part of the economies we serve. Corporate and
Investment Banking is at the heart of the Group’s shared purpose to drive commerce and prosperity through our unique
divers
ity.
We are also committed to promoting sustainable ﬁnance in our markets and channelling capital to where the impact will
be greatest. We are deliver
ing on our amb
it
ion to support susta
inable economic growth, increas
ing support
and funding for ﬁnanc
ial offer
ings that have a posit
ive
impact on our communit
ies and env
ironment.
Performance highl
ights
•
Proﬁt before taxation of $3,787 mill
ion down 3 per cent dr
iven by higher costs and impa
irments, partly offset by h
igher
income.
•
Operating income of $8,531 mill
ion was up 6 per cent dr
iven by higher orig
inat
ion volumes in Global Banking and growth in
ﬂow income in Global Markets, partly offset by lower trade volumes.
•
Operating Expense of $4,794 mill
ion was up 12 per cent due to h
igher staff costs and investments.
•
Credit impa
irment
is a net writeback of $262m, due to sign
iﬁcant releases
in Stage 3. Other impa
irment
is a charge of
$212 mill
ion and
is related to software impa
irments.
Wealth & Retail Banking
Proﬁt before taxation
$1,006m
Segment overview
Wealth & Retail Banking serves ind
iv
iduals and small businesses, with a focus on the afﬂuent segment which encompasses
Private Bank, Prior
ity Pr
ivate, Prior
ity Bank
ing, and Premium. In the mass retail space, we are focused on emerging afﬂuent
clients who will progress in their wealth journey with us and form the pipel
ine of future afﬂuent cl
ients.
We are a leading wealth manager in Asia, Africa and the Middle East, as our deep local presence and internat
ional network
enables us to capture the strong structural tailw
inds wh
ich are driv
ing cross-border wealth ﬂows.
Our comprehensive product proposit
ions span across depos
its, payments, ﬁnanc
ing, adv
isory, investments and
bancassurance. In particular, our open product architecture allows us to collaborate and innovate with product partners to
offer best-in-class and ﬁrst-to-market wealth solutions to our clients. We also support our small business clients with their
trade, working capital and other banking needs.
Wealth & Retail Banking is closely integrated with the Group’s other client segments; for example, we offer employee banking
services to Corporate & Investment Banking clients, and we also provide a source of high-quality liqu
id
ity for the Group.
Performance highl
ights
•
Proﬁt before taxation of $1,006 mill
ion down 23 per cent dr
iven by higher costs and impa
irments, partly offset by h
igher
income.
•
Operating income of $3,706 mill
ion was up 6 per cent, due to by Wealth Solut
ions (Investment Products), Deposits
(due to volume growth), and Unsecured Lending.
•
Operating Expense of $2,339 mill
ion was up 13 per cent on account of
inﬂat
ion and frontl
ine hir
ing.
•
Credit impa
irment was a net charge of $286 m
ill
ion and relates to h
igher provis
ions
in Stage 3 and normal ﬂows and higher
delinquenc
ies
in Stages 1 and 2. Other impa
irment
is a charge of $75 mill
ion and
is related to software impa
irments.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
13
Strategic report continued
Ventures
Proﬁt before taxation
$(80)m
Segment overview
Ventures is comprised of Trust Bank, which is Singapore’s ﬁrst dig
itally nat
ive bank, launched in partnership with FairPr
ice
Group in September 2022. It has become one of the world’s fastest growing dig
ital banks, rap
idly expanding to 974,000
customers in Singapore by the end of 2024 and build
ing a w
ide range of innovat
ive products and serv
ices.
Performance highl
ights
•
Loss before tax of $80mill
ion decreased by $177m
ill
ion dr
iven by lower cost aris
ing from pr
ior year disposal of SC Ventures
business, as well as growth in both customer numbers and volumes in Trust Bank.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
14
Strategic report continued
Financ
ial rev
iew
Summary of ﬁnancial performance
2024
$mill
ion
2023
$mill
ion
Change
%
Net Interest income
4,400
4,607
(5)
Non NII
8,014
6,942
15
Operating income
12,414
11,549
7
Operating expenses
(7,550)
(7,147)
(6)
Operating proﬁt before impa
irment and taxat
ion
4,864
4,402
10
Credit impa
irment
(15)
58
(126)
Goodwill & Other impa
irment
(410)
(42)
nm
Proﬁt/(Loss) from associates and jo
int ventures
8
(4)
nm
Proﬁt before taxation
4,447
4,414
1
Taxation
(1,465)
(1,177)
(24)
Proﬁt for the period
2,982
3,237
(8)
Operating income
increased 7 per cent. Excluding three notable items relating to gains on revaluation of FX posit
ions
in
Egypt, hyperinﬂat
ionary account
ing adjustments in Ghana, and loss/gain on subsid
iar
ies disposals, as well as the
reclassif
icat
ion of deposit insurance premium to expenses (the reclassif
icat
ion), operating income was up 10 per cent and
was driven by growth in Non net interest income (Non NII).
Net interest income (NII)
decreased 5 per cent, driven by lower volumes and impact of elevated pass through rates on
margins, partly offset by short-term hedge roll off. Excluding the reclassif
icat
ion, NII decreased 6 percent.
Non NII
increased 15 per cent driven by higher orig
inat
ion volumes and fees in Global Banking, robust ﬂow and episod
ic
income in Global Markets and sustained momentum in Wealth Solutions. Excluding notable items, Non NII increased 21 per
cent.
Operating expenses
are up 6 per cent or 5 per cent excluding the reclassif
icat
ion. This was largely driven by inﬂat
ion, strateg
ic
investments and continued investments into business growth in
it
iat
ives.
Credit impa
irment
is a net charge of $15mill
ion and
is driven by normal ﬂows and higher delinquenc
ies
in WRB partially
offset by releases in CIB.
Other impa
irment
is a net charge of $410m, of which $383m relates to write-off of software assets.
Taxation
of $1,465 mill
ion for the year represents an effect
ive tax rate of 33 per cent against prior year effective tax rate of
27%, and is due to increased non-creditable withhold
ing taxes and other taxes, as well as loss on sale of subs
id
iar
ies in
Africa for which tax relief is not available.
Proﬁt/(loss) before tax by client segment
2024
$mill
ion
2023
(Restated)¹
$mill
ion
Change
%
Corporate & Investment Banking
3,787
3,886
(3)
Wealth & Retail Banking
1,006
1,304
(23)
Ventures
(80)
(257)
69
Central & other items (segment)
(266)
(519)
49
Proﬁt before taxation
4,447
4,414
1%
1
Prior period amounts have been restated to align with changes to the current year presentation which now reﬂect the impact of restructuring cost and gain on sale of
businesses.
Corporate & Investment Banking (CIB)
proﬁt decreased 3 percent driven by higher cost and software impa
irments, partly
offset by higher income, largely from Global Banking and Global Markets, and stage 3 Expected Credit Loss (ECL) releases.
Wealth & Retail Banking (WRB)
proﬁt decreased 23 percent driven by higher costs and credit impa
irments, partly offset
by higher income from Wealth Solutions.
Ventures
loss lower than prior year due to lower cost aris
ing from pr
ior year disposal of SC Ventures business.
Central & Other items (C&O)
loss is 49 per cent lower than prior year, driven by beneﬁts from the roll-off of short-term hedges,
translation gains on the revaluation of FX posit
ions
in Egypt and gain relating to a hyperinﬂat
ionary account
ing adjustment
in Ghana, partly offset by non-repeat of gain from subsid
iary d
isposal in previous year.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
15
Strategic report continued
Credit risk summary
Balance Sheet
2024
$mill
ion
2023
$mill
ion
Change
1
%
Gross loans and advances to customers
2
161,141
159,552
1
Of which stage 1
149,751
146,718
2
Of which stage 2
7,292
7,657
(5)
Of which stage 3
4,098
5,177
(21)
Expected credit loss provis
ions
(2,899)
(3,409)
(15)
Of which stage 1
(254)
(198)
28
Of which stage 2
(193)
(193)
–
Of which stage 3
(2,452)
(3,018)
(19)
Net loans and advances to customers
158,242
156,143
1
Of which stage 1
149,497
146,520
2
Of which stage 2
7,099
7,464
(5)
Of which stage 3
1,646
2,159
(24)
Cover ratio of stage 3 before/after collateral (%)
3
60/74
58/73
2/1
Credit grade 12 accounts ($mill
ion)
892
2,117
(58)
Early alerts ($mill
ion)
3,830
3,791
1
Investment grade corporate exposures (%)
3
75
75
–
1
Variance is increase/(decrease) comparing current reporting period to prior reporting period
2
Includes reverse repurchase agreements and other sim
ilar secured lend
ing held at amortised cost of $9,121 mill
ion at 31 December 2024
(31 December 2023: $13,827 mill
ion)
3
Change is the percentage points difference between the two points rather than the percentage change
Net charge-off ratio
2024
2023
Credit
impa
irment
(charge)/
release for the
year/ period
$mill
ion
Net average
exposure
$mill
ion
Net Charge-
off Ratio
%
Credit
impa
irment
(charge)/
release for the
year/ period
$mill
ion
Net average
exposure
$mill
ion
Net
Charge-off
Ratio
%
Stage 1
(18)
171,508
0.01%
32
169,013
(0.02)%
Stage 2
(158)
7,142
2.21%
(132)
7,154
1.85%
Stage 3
118
1,861
(6.34)%
45
2,358
(1.91)%
Total exposure
(58)
180,511
0.03%
(55)
178,525
0.03%
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
16
Strategic report continued
Balance sheet and liqu
id
ity
2024
$mill
ion
2023
$mill
ion
Assets
Loans and advances to banks
22,941
22,803
Loans and advances to customers
158,242
156,143
Other assets
382,351
359,633
Total assets
563,534
538,579
Liab
il
it
ies
Deposits by banks
22,409
23,616
Customer accounts
239,204
237,902
Other liab
il
it
ies
267,805
243,117
Total liab
il
it
ies
529,418
504,635
Equity
34,116
33,944
Total equity and liab
il
it
ies
563,534
538,579
Advances-to-deposits ratio (%)
1
53.9%
50.5%
1
Advances exclude $19,187mill
ion held w
ith central banks (31 December 2023: $20,710 mill
ion) that have been conﬁrmed as repayable at the po
int of stress, repurchase
agreements and other sim
ilar secured lend
ing of $9,121 mill
ion (31 December 2023: $13,827 m
ill
ion) and
include loans and advances to customers held at fair value
through proﬁt or loss of $3,989 mill
ion (31 December 2023: $3,188 m
ill
ion). Depos
its include customer accounts held at fair value through proﬁt or loss of $9,222 mill
ion (31
December 2023: $9,166 mill
ion)
The Group’s balance sheet is strong, highly liqu
id and d
ivers
iﬁed.
Loans and advances to customers increased 1 per cent since December 2023 to $158 bill
ion due ma
inly to higher orig
inat
ion
volumes in Global Banking.
Customer accounts of $239 bill
ion decreased by 1 per cent s
ince December 2023 driven mainly by increase in retail term deposits.
Capital base and ratios
2024
$mill
ion
2023
$mill
ion
CET1 capital
22,475
21,794
Addit
ional T
ier 1 capital (AT1)
5,897
5,453
Tier 1 capital
28,372
27,247
Tier 2 capital
10,553
11,607
Total capital
38,925
38,854
CET1 capital ratio (%)
13.3%
13.2%
Total capital ratio (%)
23.0%
23.5%
Leverage ratio (%)
5.1%
5.0%
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
17
Strategic report continued
Capital disclosures in this document are provided on the basis of Standard Chartered (Group), being Standard Chartered
Bank and its subsid
iar
ies.
Standard Chartered Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financ
ial Conduct
Authority (FCA).
Capital requirements are set by the PRA for Standard Chartered Bank on a solo-consolidat
ion bas
is. The solo-consolidated
group differs from Standard Chartered Bank (Company) in that it includes the full consolidat
ion of four subs
id
iar
ies, namely
Standard Chartered Holdings (International) B.V., Standard Chartered Grindlays PTY Lim
ited, SCMB Overseas L
im
ited and
Corrasi Covered Bonds LLP.
The Group continues to operate through its branches and various subsid
iar
ies, all of which remain well-capital
ised
in
accordance with their applicable risk appetites and applicable regulatory requirements.
The Group’s CET1 capital ratio increased by 12bps to 13.3 per cent at 31 December 2024 with leverage ratio of 5.1 per cent. The
Group mainta
ins h
igh levels of loss absorbing capacity.
RWAs increased by $3.6 bill
ion to $169.2 b
ill
ion. CET1 cap
ital increased by $0.7 bill
ion to $22.5 b
ill
ion dr
iven primar
ily by proﬁts
of $3 bill
ion, lower regulatory deduct
ions of $0.6 bill
ion (largely from
intang
ible assets), and movements
in other
comprehensive income of $0.2 bill
ion. These
increases were partially offset by distr
ibut
ions of $2.7 bill
ion and the fore
ign
currency translation impact of $0.4 bill
ion.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
18
Our business
Standard Chartered Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the PRA and by
the Financ
ial Conduct Author
ity (FCA). The PRA is the consolidated supervisor in respect of the Group (of which PLC is the
ultimate parent).
Standard Chartered Bank is a material subsid
iary of the PLC Group for the purposes of the Bank of England-led s
ingle point of
entry preferred resolution strategy for the PLC Group. The Group is a core part of, and crit
ical prov
ider of essential services to
the PLC Group and is fundamental to the delivery of the PLC Group’s purpose, franchise, and strategy.
Clients
•
The Group remains the largest Corporate & Investment Banking (CIB) orig
inat
ion hub supporting a sign
iﬁcant
part of CIB revenues and is key to the global network proposit
ion
•
The Group is the relationsh
ip hub for the majority of key CIB cl
ients, particularly Organisat
ion for Econom
ic
Co-operation and Development (OECD) clients
•
The Group holds the majority of the PLC Group’s corporate and ﬁnancial
inst
itut
ions deposits, a sign
iﬁcant
part of the PLC Group’s USD funding base
Capabil
it
ies
•
The Group holds key licenses and hosts infrastructure vital for the global franchise such as global USD & EUR clearing
•
The Group is the main Global Markets booking centre supporting the major
ity of Global Market revenues
•
The Group remains a main access point to high quality USD funding
Crit
ical
infrastructure
•
The Group is the key liqu
id
ity management centre: holding the major
ity of the PLC Group’s h
igh-quality liqu
id
assets for regulatory purposes
•
The Group provides functional support on a global basis
•
The Group operates global business services hubs for the beneﬁt of the PLC Group includ
ing shared serv
ice
centres and centres of excellence
Investors
•
The Group’s UK domic
ile underp
ins a unique investor proposit
ion: emerg
ing markets access from
a UK regulated platform
•
A sign
iﬁcant number of PLC Group’s equ
ity and debt investors are based in the Group’s footprint
Recovery and
resolution
•
Standard Chartered Bank is the largest material subsid
iary for the purposes of m
in
imum requ
irement for own
funds and elig
ible l
iab
il
it
ies (MREL) and total loss-absorb
ing capital (TLAC)
•
The Group is crit
ical to the del
ivery of capital and liqu
id
ity generating management actions in PLC Group’s
recovery planning
•
The Group houses various crit
ical serv
ices and crit
ical funct
ions in resolution and resolution management
The Group’s Credit Ratings
The Group remains a highly rated inst
itut
ion (in both absolute and relative terms). Moody’s revised the rating outlook on
Standard Chartered Bank in September 2024 to posit
ive from stable, reﬂect
ing improv
ing proﬁtabil
ity and expectations
that asset quality, capital
isat
ion and liqu
id
ity would remain stable. S&P and Fitch ratings are on stable outlook.
S&P
Moody’s
Fitch
Long Term
A+
A1
A+
Short Term
A-1
P-1
F1
Outlook
Stable
Posit
ive
Stable
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
19
Risk review
An update on our risk management approach
Our Risk Management Framework (RMF) sets out the princ
iples and m
in
imum requ
irements for risk management and
governance across the Group. The RMF enables the Group to manage enterprise-wide risks, with the object
ive of max
im
is
ing
risk-adjusted returns while remain
ing w
ith
in our R
isk Appetite (RA).
Princ
ipal R
isk Types and Risk Appetite
Princ
ipal R
isk Types (PRTs) are those risks that are inherent in our strategy and business model and have been formally
deﬁned in the Group’s RMF.
The table below details the Group’s current PRTs and their corresponding RA statements.
Princ
ipal R
isk Types
Deﬁnit
ion
Risk Appetite Statement
Credit Risk
Potential for loss due to failure of a counterparty
to meet its agreed obligat
ions to pay the Group.
The Group manages its credit exposures following the
princ
iple of d
ivers
iﬁcation across products, geograph
ies,
client segments and industry sectors.
Traded Risk
Potential for loss resulting from activ
it
ies
undertaken by the Group in ﬁnanc
ial markets.
The Group should control its ﬁnanc
ial markets act
iv
it
ies to
ensure that market and counterparty credit risk losses do
not cause material damage to the Group’s franchise.
Treasury Risk
Potential for insuff
ic
ient capital, liqu
id
ity, or funding
to support our operations, the risk of reductions in
earnings or value from movements in interest rates
impact
ing bank
ing book items and the potential for
losses from a shortfall in the Group’s pension plans.
Indiv
idual regulated ent
it
ies w
ith
in the Group should
mainta
in sufﬁcient cap
ital, liqu
id
ity, and funding to support
its operations, and an interest rate proﬁle ensuring that the
reductions in earnings or value from movements in interest
rates impact
ing bank
ing book items does not cause material
damage to the Group’s franchise. In addit
ion, the Group
should ensure its pension plans are adequately funded.
Operational and
Technology Risk
Potential for loss resulting from inadequate or
failed internal processes, technology events,
human error, or from the impact of external events
(includ
ing legal r
isks).
The Group aims to control operational and technology risks
to ensure that operational losses (ﬁnanc
ial or reputat
ional),
includ
ing those related to the conduct of bus
iness matters,
do not cause material damage to the Group’s franchise.
Information and
Cyber Security Risk
Risk to the Group’s assets, operations, and ind
iv
iduals
due to the potential for unauthorised access, use,
disclosure, disrupt
ion, mod
if
icat
ion, or destruction of
informat
ion assets and/or
informat
ion systems.
The Group aims to mit
igate and control ICS r
isks to ensure
that inc
idents do not cause the Bank mater
ial harm,
business disrupt
ion, ﬁnancial loss or reputat
ional damage
– recognis
ing that wh
ilst inc
idents are unwanted, they
cannot be entirely avoided.
Financ
ial Cr
ime Risk
1
Potential for legal or regulatory penalties, material
ﬁnancial loss or reputat
ional damage resulting
from the failure to comply with applicable laws
and regulations relating to internat
ional sanct
ions,
anti-money laundering and anti-bribery and
corruption, and fraud.
The Group has no appetite for breaches of laws
and regulations related to Financ
ial Cr
ime, recognis
ing
that whilst inc
idents are unwanted, they cannot be
entirely avoided.
Compliance Risk
Potential for penalties or loss to the Group or
for an adverse impact to our clients, stakeholders
or to the integr
ity of the markets we operate
in
through a failure on our part to comply with laws,
or regulations.
The Group has no appetite for breaches of laws and
regulations related to regulatory non-compliance;
recognis
ing that wh
ilst inc
idents are unwanted,
they cannot be entirely avoided.
Environmental,
Social and
Governance and
Reputational
(ESGR) Risk
Potential or actual adverse impact on the
environment and/or society, the Group’s ﬁnanc
ial
performance, operations, or the Group’s name, brand
or standing, aris
ing from env
ironmental, social or
governance factors, or as a result of the Group’s
actual or perceived actions or inact
ions.
The Group aims to measure and manage ﬁnanc
ial and
non-ﬁnancial r
isks aris
ing from cl
imate change, reduce
emiss
ions
in line with our net zero strategy and protect the
Group from material reputational damage by upholding
responsible conduct and striv
ing to do no s
ign
iﬁcant
environmental and social harm.
Model Risk
Potential loss that may occur because of decis
ions or
the risk of mis-estimat
ion that could be pr
inc
ipally
based on the output of models, due to errors in the
development, implementat
ion, or use of such models.
The Group has no appetite for material adverse impl
icat
ions
aris
ing from m
isuse of models or errors in the development
or implementat
ion of models; wh
ilst accepting some
model uncertainty.
1
Fraud forms part of the Financ
ial Cr
ime RA Statement but in line with market practice does not apply a zero-tolerance approach
As of November 2024, the Climate Risk RA statement was integrated into the ESGR PRT.
> Further details on our
Risk Management Approach
can be found on pages 45 to 57.
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
22
Supply chain issues and key material shortages
While the in
it
ial disrupt
ion caused by the Russ
ia–Ukraine and Middle East conﬂicts have somewhat abated, they highl
ighted
the continued vulnerabil
ity of global supply l
ines.
There is growing polit
ical awareness around the need for key component and resource secur
ity at national level. Countries
are enacting rules to “de-risk” by reducing reliance on rivals or concentrated suppliers (for example, semi-conductors) and
look to either re-industr
ial
ise or make use of near-shoring and friend-shoring production.
Countries’ increased will
ingness to
impose trade barriers to inﬂuence trading behaviour may disrupt exporters, strain relations
with trade partners and add to inﬂat
ionary pressures. A recent example
is the EU probe into unfair commercial practices in
the provis
ion of renewable energy equ
ipment, particularly subsid
ies related to offshore w
ind and solar energy.
The growing need for minerals and rare earth elements to power green energy technologies can be leveraged to achieve
economic or polit
ical a
ims by restrict
ing access. Th
is can bolster the negotiat
ing
inﬂuence of the main reﬁners and producers,
such as China, Indonesia and some African nations, while prompting some nations to slow down their green transit
ion plans.
Actions have already been taken in Western nations to de-risk through in
it
iat
ives such as the M
inerals Security Partnership.
How these risks are mit
igated
•
We remain vig
ilant
in monitor
ing r
isk and assessing impacts from geopolit
ical and macroeconom
ic risks to
portfolio concentrations.
•
We explored the impl
icat
ions of a second Trump admin
istrat
ion, evaluating policy direct
ion under d
ifferent scenarios,
the potential outcomes and challenges associated with each.
•
We mainta
in a d
ivers
iﬁed portfol
io across products and geographies, with specif
ic r
isk appetite metrics to
monitor concentrations.
•
We are performing targeted portfolio analyses to ident
ify cl
ients that may be impacted by a new wave of tariffs.
•
Mit
igat
ions in our Wealth & Retail Banking segment include build
ing a res
il
ient revenue base and ma
inta
in
ing close
relations with clients for the awareness of early alerts.
•
Increased scrutiny is applied when onboarding clients in sensit
ive
industr
ies and
in ensuring compliance with sanctions.
•
We util
ise Cred
it Risk mit
igat
ion measures includ
ing collateral and cred
it insurance.
•
We conduct portfolio reviews as well as macroeconomic, thematic and event-driven stress tests at Group, country,
and business level, with regular reviews of vulnerable sectors, and undertake mit
igat
ing actions.
•
We have a dedicated country risk team that closely monitors sovereign risk.
•
We run a series of daily market risk stress scenarios to assess the impact of unlikely but plausible market shocks.
•
We run a suite of management scenarios with differ
ing sever
it
ies to assess the
ir impact on key risk appetite metrics.
•
We regularly review our third-party arrangements to improve operational resil
ience.
ESG considerat
ions
ESG risk
Higher frequencies of extreme weather events are observed each year and the cost of managing the climate impacts is
increas
ing, w
ith the burden disproport
ionately borne by develop
ing markets, where we have a large footprint. Alongside
climate, other environmental risks pose incremental challenges to food, health systems and energy security; for example,
biod
ivers
ity loss, pollution, and depletion of water.
Modern slavery and human rights concerns are increas
ingly
in focus with the scope expanding beyond direct operations
to extended supply chains and vendors.
ESG regulation continues to develop across the world, often with differ
ing taxonom
ies and disclosure requirements.
This increased regulation is also generating stakeholder scrutiny on greenwashing risk, with ESG lit
igat
ion being brought
against corporations and governments in multiple markets.
However, a succession of polit
ical, soc
ial and economic disrupt
ions
in recent years have diverted attention and resources
away from longer-term action on climate and sustainable development as competing spending demands are made of
stretched budgets. This will be further exacerbated by the new Trump admin
istrat
ion, which has rolled back green energy
polic
ies, and w
ithdrawn the US from the Paris Agreement.
For companies and governments, the trade-off between pragmatism and environmentalism has crystallised with several
delaying or rolling back targets. For example, there has been a sign
iﬁcant reduct
ion in the number of ESG-focused funds
launched in 2024, and there has been a lack of progress at the recent COP meeting. Several US and Canadian banks have
withdrawn from the Net-Zero Banking Alliance. A slower transit
ion to low carbon bus
iness models may impact progress
towards the Group’s net zero targets and product roadmap.
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
21
Uncertain interest rate trajectory and credit downturn
Although rate cuts have been enacted by all major central banks, with further cuts signalled, the scale and pace of cuts are
still highly uncertain. Structurally higher deﬁc
its, cont
inued supply disrupt
ions, m
il
itary spend
ing and other inﬂat
ionary
pressures such as addit
ional tar
iffs may keep rates higher.
A ‘higher-for-longer’ rate environment would continue to stretch companies and sovereigns alike, with the global corporate
default rate remain
ing well above the post-ﬁnancial cr
is
is average
in 2024. Stress has continued in the global commercial
real estate sector and may extend to ﬁxed-rate mortgages. In contrast, aggressive cuts could renew inﬂat
ion.
Despite this, markets have remained surpris
ingly res
il
ient to adverse geopol
it
ical cond
it
ions and
inﬂat
ion forecasts. The
conﬂicts in the Middle East and Russia have not had a material impact on commodity prices and the wider global economy.
However, oil price volatil
ity could re-emerge should the US strengthen sanct
ions enforcement. While credit spreads remain
below those observed at the outbreak of the Russia–Ukraine conﬂict, volatil
ity and abrupt changes
in sentiment remain a risk.
Economic challenges in China
China’s growth rate looks unlikely to return to pre-pandemic levels. Although prelim
inary ﬁgures reported 2024 growth at 5
per cent, the IMF’s forecast is for a drop to 4.5 per cent in 2025. As a result of the subdued growth rate, China announced a
co-ordinated package of stimulus measures in the second half of 2024 to boost the economy with a focus on the stressed real
estate and local government sectors.
Competit
ion w
ith the US and the EU is intense, particularly around modern technologies. Areas such as electric vehicles and
AI are key battlegrounds. China’s industr
ial overcapac
ity leads to increased search for export markets; electric vehicles and
steel are prime examples. This is stoking trade-related frict
ions and provok
ing economic counter measures such as tariffs
announced by the US and the EU, with the new Trump admin
istrat
ion’s plans to impose further trade barriers on China also
looming.
To combat this China has sought agreements with other nations, such as the Associat
ion of Southeast As
ia Nations
(ASEAN)–China Free Trade Agreement. As well as strengthening economic ties, they allow Chinese companies to establish
manufacturing overseas, potentially circumvent
ing the worst of the restr
ict
ions.
China is also urging partners to increase the use of renminb
i (RMB)
in trade. In the ﬁrst half of 2024, RMB’s share of global
payments was 4.7 per cent, over double that of a year earlier, making it the fourth most used currency for global payments
by value.
Given China’s importance to global trade, a prolonged slowdown would have wider impl
icat
ions across the supply chain,
especially for its trading partners, as well as for countries which rely on it for investment, such as those in Africa. However,
opportunit
ies ar
ise from the divers
iﬁcation of
intra-Asia trade and other global trade routes, and growth acceleration in
South Asia, especially India.
Sovereign risk
While a number of markets remain in debt distress, emerging markets have proven resil
ient
in 2024. Despite continued higher
rates, the last notable request for debt relief was made in early 2023. Progress has also been observed with Zambia and
Sri Lanka’s debt exchanges.
However bond issuance remains high, with global government debt set to exceed $100 trill
ion
in 2024, and potentially reach
100 per cent of global GDP by 2030. Markets are likely to ﬁnd it diff
icult to reduce debt levels due to the preva
il
ing pol
it
ical
backdrop, weak GDP growth, demographic pressures and pressure to increase national security and defence.
While markets have remained opened for all categories of sovereign issuers, reﬁnanc
ing costs have been r
is
ing, and
interest
payments are an increas
ing burden on both emerg
ing and developed markets. Emerging markets in particular will continue
to be affected by US dollar strengthening, which has intens
iﬁed s
ince the US election. This would impact through multiple
avenues, namely higher import prices, lower ﬂexib
il
ity in monetary policy and making reﬁnanc
ing ex
ist
ing debt or access
ing
hard currency liqu
id
ity more challenging.
Some countries also face a heightened risk of fail
ing to manage soc
ietal demands and increas
ing pol
it
ical vulnerab
il
ity, as
evidenced by France’s recent downgrade. Food and security challenges exacerbated by armed conﬂict and climate change
also have the potential to drive social unrest.
Debt moratoria and reﬁnanc
ing
in
it
iat
ives for some emerg
ing markets are complicated by a larger number of ﬁnanc
iers, w
ith
much ﬁnancing done on a b
ilateral basis outside of the Paris Club. Whilst the Global Sovereign Debt Roundtable has made
some progress on coordinat
ing approaches between the Par
is Club and other lenders, their interests do not always match.
This can lead to delays in negotiat
ions on debt resolut
ions for developing nations.
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
22
Supply chain issues and key material shortages
While the in
it
ial disrupt
ion caused by the Russ
ia–Ukraine and Middle East conﬂicts have somewhat abated, they highl
ighted
the continued vulnerabil
ity of global supply l
ines.
There is growing polit
ical awareness around the need for key component and resource secur
ity at national level. Countries
are enacting rules to “de-risk” by reducing reliance on rivals or concentrated suppliers (for example, semi-conductors) and
look to either re-industr
ial
ise or make use of near-shoring and friend-shoring production.
Countries’ increased will
ingness to
impose trade barriers to inﬂuence trading behaviour may disrupt exporters, strain relations
with trade partners and add to inﬂat
ionary pressures. A recent example
is the EU probe into unfair commercial practices in
the provis
ion of renewable energy equ
ipment, particularly subsid
ies related to offshore w
ind and solar energy.
The growing need for minerals and rare earth elements to power green energy technologies can be leveraged to achieve
economic or polit
ical a
ims by restrict
ing access. Th
is can bolster the negotiat
ing
inﬂuence of the main reﬁners and producers,
such as China, Indonesia and some African nations, while prompting some nations to slow down their green transit
ion plans.
Actions have already been taken in Western nations to de-risk through in
it
iat
ives such as the M
inerals Security Partnership.
How these risks are mit
igated
•
We remain vig
ilant
in monitor
ing r
isk and assessing impacts from geopolit
ical and macroeconom
ic risks to
portfolio concentrations.
•
We explored the impl
icat
ions of a second Trump admin
istrat
ion, evaluating policy direct
ion under d
ifferent scenarios,
the potential outcomes and challenges associated with each.
•
We mainta
in a d
ivers
iﬁed portfol
io across products and geographies, with specif
ic r
isk appetite metrics to
monitor concentrations.
•
We are performing targeted portfolio analyses to ident
ify cl
ients that may be impacted by a new wave of tariffs.
•
Mit
igat
ions in our Wealth & Retail Banking segment include build
ing a res
il
ient revenue base and ma
inta
in
ing close
relations with clients for the awareness of early alerts.
•
Increased scrutiny is applied when onboarding clients in sensit
ive
industr
ies and
in ensuring compliance with sanctions.
•
We util
ise Cred
it Risk mit
igat
ion measures includ
ing collateral and cred
it insurance.
•
We conduct portfolio reviews as well as macroeconomic, thematic and event-driven stress tests at Group, country,
and business level, with regular reviews of vulnerable sectors, and undertake mit
igat
ing actions.
•
We have a dedicated country risk team that closely monitors sovereign risk.
•
We run a series of daily market risk stress scenarios to assess the impact of unlikely but plausible market shocks.
•
We run a suite of management scenarios with differ
ing sever
it
ies to assess the
ir impact on key risk appetite metrics.
•
We regularly review our third-party arrangements to improve operational resil
ience.
ESG considerat
ions
ESG risk
Higher frequencies of extreme weather events are observed each year and the cost of managing the climate impacts is
increas
ing, w
ith the burden disproport
ionately borne by develop
ing markets, where we have a large footprint. Alongside
climate, other environmental risks pose incremental challenges to food, health systems and energy security; for example,
biod
ivers
ity loss, pollution, and depletion of water.
Modern slavery and human rights concerns are increas
ingly
in focus with the scope expanding beyond direct operations
to extended supply chains and vendors.
ESG regulation continues to develop across the world, often with differ
ing taxonom
ies and disclosure requirements.
This increased regulation is also generating stakeholder scrutiny on greenwashing risk, with ESG lit
igat
ion being brought
against corporations and governments in multiple markets.
However, a succession of polit
ical, soc
ial and economic disrupt
ions
in recent years have diverted attention and resources
away from longer-term action on climate and sustainable development as competing spending demands are made of
stretched budgets. This will be further exacerbated by the new Trump admin
istrat
ion, which has rolled back green energy
polic
ies, and w
ithdrawn the US from the Paris Agreement.
For companies and governments, the trade-off between pragmatism and environmentalism has crystallised with several
delaying or rolling back targets. For example, there has been a sign
iﬁcant reduct
ion in the number of ESG-focused funds
launched in 2024, and there has been a lack of progress at the recent COP meeting. Several US and Canadian banks have
withdrawn from the Glasgow Financ
ial All
iance on Net Zero. A slower transit
ion to low carbon bus
iness models may impact
progress towards the Group’s net zero targets and product roadmap.
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
23
Strategic report continued
How these risks are mit
igated
•
Climate Risk considerat
ions are embedded across all relevant Pr
inc
ipal R
isk Types. This includes client-level
Climate Risk assessments, includ
ing sett
ing adequate mit
igants or controls as part of dec
is
ion mak
ing and portfolio
management activ
it
ies.
•
We embed our values through our Posit
ion Statements for sens
it
ive sectors and a l
ist of prohib
ited act
iv
it
ies. We also
mainta
in ESG and Reputat
ional Risk standards to ident
ify, assess and manage these r
isks when provid
ing ﬁnancial
services to clients.
•
The management of greenwashing risks has been integrated into our ESG and Reputational Risk Framework, Reputational
Risk policy, Sustainable Finance product greenwashing standard, and Corporate Affairs, Brand and Marketing standards
for communicat
ions and segment campa
igns.
•
Detailed portfolio reviews and stress tests are conducted to test resil
ience to cl
imate-related physical and transit
ion r
isks
and enhance modelling capabil
it
ies to understand the ﬁnanc
ial r
isks and opportunit
ies from cl
imate change.
•
We assess our relevant corporate clients and suppliers against various internat
ional human r
ights princ
iples, as well as
through our social safeguards.
+ Modern Slavery Statement:
sc.com/modernslavery
+ Human Rights Posit
ion Statement:
sc.com/humanrights
New business structures, channels and competit
ion
Competit
ion ar
is
ing from technolog
ical developments and non-bank lending
Tradit
ional bank
ing faces challenges in its external competit
ive env
ironment from a range of ﬁntechs and private credit
players, which dis
intermed
iate and cause disrupt
ion to trad
it
ional lenders as well as publ
ic markets. There are also ‘dig
ital
enterprise’ business models, which integrate ﬁnanc
ial serv
ices with emerging technologies like AI, big data analytics and
cloud computing fostering ﬁnanc
ial d
is
intermed
iat
ion.
The rapid adoption of AI in particular raises a broad spectrum of challenges and opportunit
ies. There has been a large
increase of AI use in frauds and scams, and there are potential societal and economic impacts of the technology being used
to replace jobs across most sectors. However, with AI tools and models being embedded into everyday life it is likely to
become a foundational technology. Leveraging the beneﬁts of augmented AI while managing these risks will be a core
part of the Group’s business model.
While there are challenges, banks themselves also have an opportunity to defend or leverage their competit
ive advantage
by harnessing new technologies, partnerships or new asset classes.
In the longer term, increased adoption of stable coins and dig
ital currenc
ies could sim
ilarly create alternat
ive deposit
channels and bank dis
intermed
iat
ion.
The rapid adoption of new technologies, partnership models or dig
ital assets by banks br
ings a range of inherent risks,
requir
ing clear operat
ing models and risk frameworks. It is essential to upskill our people to develop in-house expertise
and capabil
it
ies to manage associated risks, includ
ing model r
isks or managing external third parties which deliver these
technologies. We must ensure that the people, process and technology agendas are viewed holist
ically to ensure the most
effective and efﬁc
ient
implementat
ion of new
infrastructure
Cyber security and data challenges
The Group’s dig
ital footpr
int is expanding. This increases inherent cyber risk as more services and products are dig
it
ised,
outsourced and made more accessible. Highly interconnected and extended enterprises drive efﬁc
ienc
ies but can expand
the opportunit
ies ava
ilable for malic
ious actors to ga
in entry or access to corporate assets. This includes infrastructure such
as cloud and third-party enabled services.
The risk of cyber inc
idents
is amplif
ied by h
ighly organised and resourced threat actors includ
ing organ
ised crime and nation
states, with malic
ious act
iv
ity made eas
ier through the commodit
isat
ion or “as a service” access to malic
ious tools and
technologies. Emerging technology such as AI is enabling novel or augmented attack types, and cross-border tensions further
drive the arms race to develop more capable and innovat
ive cyber capab
il
it
ies, both offensive and defensive.
Geopolit
ical dynam
ics are leading to progressively fragmented and divergent regulatory frameworks through which
the Group must navigate. There are growing data sovereignty requirements to localise data, systems and operations,
with data increas
ingly recogn
ised as being at the centre of global trade.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
24
How these risks are mit
igated
•
We monitor emerging technology trends, business models and opportunit
ies relevant to the bank
ing sector.
•
We invest in our capabil
it
ies to prepare for and protect against disrupt
ion and new r
isks.
•
We have established enhanced governance for novel areas, such as the Dig
ital Asset R
isk Committee and the Responsible
AI Council.
•
We manage data risks through our Compliance Risk Type Framework and informat
ion secur
ity risks through our
Information and Cyber Security (ICS) Risk Type Framework. We mainta
in a ded
icated Group Data Conduct Policy with
globally applicable standards. These standards undergo regular review to ensure alignment with changing regulations
and industry best practice.
•
We augment our data risk management capabil
it
ies and controls, includ
ing through programmes to enhance data qual
ity
and compliance with Basel Committee of Banking Supervis
ion 239 requ
irements and to address evolving legal and
regulatory requirements relating to privacy and personal data protection, cross-border data transfers and the use of AI,
with progress tracked at executive level risk governance committees.
•
Risks embedded in key software programmes are continuously reassessed together with enhancements made in testing
stages of new systems before they go live.
•
The Group has implemented a ‘defence-in-depth’ ICS control environment strategy to protect, detect and respond to
known and emerging ICS threats.
•
New risks aris
ing from partnersh
ips, alliances, dig
ital assets and generat
ive technologies are ident
iﬁed through the
New Init
iat
ives Risk Assessment and Third-Party Risk Management Policy and Standards.
•
Work is already under way to gauge the potential beneﬁts and threats of nascent technologies such as quantum computing.
Regulatory considerat
ions
Regulatory evolution and fragmentation
The regulatory framework for banks is expanding, becoming more complex and remains subject to continual evolution.
Another outcome of the new Trump admin
istrat
ion may be a relaxation of US regulation, and potentially a challenge to its
adoption of Basel 3.1 rules. The UK has postponed its implementat
ion of Basel 3.1 tw
ice, with the current deadline being 2027.
Aside from changes in prudential, ﬁnanc
ial markets, cl
imate and data regulations, we antic
ipate a r
ise in consultations and
regulations relating to the use of AI, and particularly around its ethical applicat
ion
in decis
ion-mak
ing.
Jurisd
ict
ional risk arises from internat
ionally d
iverg
ing regulat
ions, with differ
ing pace and scale of regulatory adopt
ion,
conﬂict
ing rules, extraterr
itor
ial and local
isat
ion requ
irements around data, staff, capital and revenues. Data sovereignty
and ESG regulation are prime examples of jur
isd
ict
ional r
isk.
This makes it challenging for multinat
ional groups to manage cross-border act
iv
it
ies, as well as adding complexity and cost.
Such fragmented regulatory changes can also create frict
ions
in the market as a whole.
How these risks are mit
igated
•
We actively monitor regulatory developments, includ
ing those related to susta
inable ﬁnance, ESG, dig
ital assets and
AI and respond to consultations either bilaterally or through well-established industry bodies.
•
We track evolving country-specif
ic requ
irements, and actively collaborate with regulators to support important in
it
iat
ives.
•
We help shape regulation particularly in new areas like AI and Central Bank Dig
ital Currenc
ies through thought leadership,
and actively engaging with policymakers and central banks.
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
25
Strategic report continued
Demographic considerat
ions
Skills of the future
Evolving client expectations and the rapid development of technologies such as AI are transforming the workplace,
and further accelerating changes to how people deliver outcomes, connect and collaborate. The skills needed to grow
businesses and sustain careers are being disrupted as a result, with a balance of both technical and human skills becoming
increas
ingly cr
it
ical.
Workforce expectations also continue to evolve. ‘What’ work people do and ‘how’ they get to deliver it have become
different
iators
in attracting future-focused talent. There is greater desire to do work aligned to ind
iv
idual purpose and to
have increas
ing expectat
ions from employers to invest in skills and careers. These trends are even more dist
inct among
Millenn
ials and Gen Z who make up an ever-
increas
ing proport
ion of the global talent pool, and as dig
ital nat
ives possess the
attributes needed to pursue our strategy.
To sustainably attract, grow and retain the relevant skills and talent, we must continue to invest in build
ing future-focused
skills as well as further strengthen our Employee Value Proposit
ion (EVP) and brand prom
ise.
Demographic and migrat
ion trends
Divergent demographic trends across developed and emerging markets create contrasting challenges. Developed markets’
state budgets will be increas
ingly stra
ined by ageing and shrink
ing populat
ions, whilst polit
ical stances reduce the ab
il
ity
to ﬁll skills gaps through imm
igrat
ion. Conversely, emerging markets are experienc
ing fast-grow
ing, younger workforces.
While it is an opportunity to develop talent, population growth will put pressure on key resources such as food and water,
as well as government budgets for education and health to capital
ise on the ‘demograph
ic div
idend’.
Population displacement is ris
ing am
id increased conﬂict and natural disasters, a lack of key resources, climate change, and
disturbances in public order. This may increase the fragil
ity of soc
ietal structures in vulnerable centres. The topics of both
forced and economic migrat
ion are
increas
ingly
inﬂuent
ial
in polit
ical d
iscourse, and have been a major focus of the Trump
admin
istrat
ion’s ﬁrst weeks in ofﬁce. Large scale movement, both internally displaced persons and cross border migrat
ion,
could cause social unrest, as well as propagate disease transmiss
ion and accelerate the spread of future pandem
ics. The
threat of terrorist activ
ity has also
increased in the latter half of 2024.
Addit
ionally net populat
ion growth for the 21st century will be in less-developed countries. Antic
ipat
ing and proactively planning
for these demographic shifts will be essential in mainta
in
ing an efﬁc
ient global bus
iness model in the coming decades.
How these risks are mit
igated
•
We are helping colleagues to upskill and reskill, both through classroom sessions and our online learning platform.
We have an internal Talent Marketplace which enables colleagues to sign up for projects to access diverse experiences
and career opportunit
ies.
•
We place emphasis on skills and aspirat
ion to
ident
ify the talents to accelerate, as well as deploy
it in areas with the
highest impact for our clients and the business. We are pilot
ing a d
ifferent
iated learn
ing proposit
ion for these talents w
ith
the highest potential.
•
We emphasise frequent two-way feedback through performance and development conversations to embed a culture of
continuous learning and development.
•
Our culture and EVP work is addressing the emerging expectations of our diverse talent base, particularly around being
purpose-led.
•
We provide support and resources to all colleagues to help balance productiv
ity, collaborat
ion and wellbeing, with more
than 60 per cent of our workforce having signed up to work ﬂexibly.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
26
Strategic report continued
Stakeholders and responsib
il
it
ies
As a global bank operating in 51 markets, stakeholder engagement is crucial in ensuring we understand local, regional and
global perspectives and trends which inform how we do business.
This section forms our
Section 172
disclosure, describ
ing how the d
irectors considered the matters set out in section 172(1)(a)
to (f) of the Companies Act 2006. It also forms the directors’ statement required under section 414CZA of the Act.
See the following pages for:
•
How we engage stakeholders to understand their interests. See pages 26 to 27.
•
we engage employees and respond to their interests. See pages 30 to 32.
•
we respond to stakeholder interests through sustainable and responsible business. See pages 33 to 34.
Detailed informat
ion about how the Court engages d
irectly with stakeholders and shareholders can be found in the
Director’s report on pages 36 to 42.
An example of the Court’s Princ
ipal dec
is
ion
is included in this section. This section also forms our key non-ﬁnanc
ial d
isclosures
in relation to sections 414CA and 414CB of the Companies Act. Our non-ﬁnanc
ial
informat
ion statement can be found at the
end of this section.
Princ
ipal Court dec
is
ions – market entr
ies and exits
In 2024, the Court approved a decis
ion to explore opt
ions to divest three African Wealth and Retail Banking (WRB) businesses
in Botswana, Uganda and Zambia, to refocus capital to the Group’s cross-border and afﬂuent businesses in line with the
Group’s strategic object
ives. In tak
ing this decis
ion, the Court cons
idered the long-term advantages for the Group and the
businesses themselves, but also the shorter-term effects on the Group’s clients, employees and regulators before approving
the decis
ion. Once ﬁrm proposals for the d
ivestments are made, the Court will scrutin
ise the w
ider stakeholder impacts
carefully.
The Court offered its support for the decis
ion to accelerate the Group’s strateg
ic focus on offering cross-border corporate and
investment banking capabil
it
ies and wealth management for afﬂuent clients. In CIB, we will concentrate on serving the
complex needs of our largest global clients, leveraging our unique cross-border capabil
it
ies. In WRB, we will double our
investment plans in our fast-growing and high-returning wealth management business for afﬂuent clients. This incremental
investment will be funded by reshaping our Mass Retail business to focus on build
ing a strong p
ipel
ine of future afﬂuent and
internat
ional bank
ing clients. In taking this decis
ion, the Court cons
idered our investors’ interest in high quality growth and
improvement in our Return on Tangible Equity over the medium-term, as well as the interests of clients and employees in the
relevant areas of the business.
Engaging stakeholders
Listen
ing and respond
ing to stakeholder prior
it
ies and concerns is crit
ical to ach
iev
ing our Purpose and del
iver
ing on our
brand promise, here for good. We strive to mainta
in open and construct
ive relationsh
ips w
ith a wide range of stakeholders
includ
ing regulators, lawmakers, cl
ients, investors, civ
il soc
iety, and community groups.
Stakeholder feedback, where appropriate, is communicated internally to senior management through the relevant forums
and governing committees such as the Sustainab
il
ity Forum, and to the PLC Group’s Culture and Sustainab
il
ity Committee
(CSC) which oversees the PLC Group’s approach to its main relationsh
ips w
ith stakeholders.
We communicate progress regularly to external stakeholders through channels such as sc.com, established social media
platforms and this report. More detailed informat
ion on mater
ial sustainab
il
ity topics can be found in our Sustainab
il
ity
section of pages 11 to 12.
Clients
How we create value
We want to deliver easy, everyday banking solutions to our clients in a simple and cost-effective way with a great customer
experience. We enable ind
iv
iduals to grow, protect and pass on their wealth; we help businesses trade, transact, invest and
expand; and we help a variety of ﬁnanc
ial
inst
itut
ions, includ
ing banks, publ
ic sector and development organisat
ions, w
ith
their banking needs.
How we serve and engage
Our push for a best-in-class client experience is underpinned by innovat
ive products and d
ig
ital stra
ight-through services.
This includes build
ing capab
il
ity to protect our cl
ients against evolving risks in the ecosystem, like fraud and cyber security,
and comes with education and increased client communicat
ion.
To act in the best interests of our clients, we use the ins
ights gathered from our data alongs
ide robust polic
ies, procedures
and the Group’s risk appetite to design and offer products and services that meet client needs, regulatory requirements and
Group performance targets.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
27
Strategic report continued
Fees and charges are disclosed to clients in line with regulatory requirements and industry best practice and, where available,
benchmarked against competitors. For Personal and Business Banking products, agreed interest rates, fees and other
charges as billed to clients are monitored and assessed locally, with global oversight.
Triggers for outlier fees and charges are deﬁned and subject to annual review. Complaints are reviewed on an ongoing basis
and are one of the factors that are taken into account prior to amendments to annual interest, fees and charges.
We also assess our product portfolio for new risks to ensure they remain appropriate for client needs and aligned to
emerging regulation. These quantitat
ive and qual
itat
ive assessments,
includ
ing Per
iod
ic Product Rev
iews, are intended
to provide a complete view of whether to continue, enhance, grow or retire products.
Train
ing
is provided to frontline staff across our branches, contact centres and dig
ital channels to
ident
ify and support
vulnerable clients, and we have also implemented an educational train
ing programme for those cl
ients who require
assistance in navigat
ing onl
ine and mobile channels.
Throughout 2024, we mainta
ined our sharp focus on
improv
ing the cl
ient experience across the Bank. We engaged with
clients to show them the opportunit
ies trade corr
idors could bring and how using our network could help them ﬂourish.
Our presence in high-growth markets – and ongoing roll out of dig
ital platforms – helps connect our cl
ients to the global
engines of trade and innovat
ion. As part of our PLC Group’s a
im to reach net zero carbon emiss
ions by 2050, our PLC Group’s
transit
ion ﬁnance team have been work
ing closely with our clients in hard-to abate sectors on their own transit
ions. Th
is is in
addit
ion to our PLC Group’s amb
it
ion to mob
il
ise $300 b
ill
ion of Susta
inable Finance between 2021 and 2030.
Across the bank, we have processes and controls to mit
igate greenwash
ing risks, and to support transparency we publish
the details of what constitutes our sustainable products and investments universe externally.
Wealth and Retail Banking
In 2024, we continued to expand our suite of solutions to help clients manage, protect and grow their wealth, includ
ing core
fund offerings for mass afﬂuent clients to alternatives and structured solutions for high-net-worth clients.
We strengthened our proposit
ions and capab
il
it
ies, adding high end lifestyle and cross-border priv
ileges, fam
ily advisory
and trust services, with our product offering helping drive growth.
In addit
ion, our PLC Group evolved our managed
investments business to focus on helping clients build foundational and
opportunist
ic portfol
ios for which we bring innovat
ive solut
ions, such as our PLC Group’s Signature CIO Funds, a series of
foundational portfolios built on our PLC Group’s CIO ins
ights.
In 2024, we also tried to help clients by partnering to create new services. To help the next generation of high-net-worth
clients, our PLC Group launched our ﬁrst Young Entrepreneur Programme (YEP). The YEP is curated in collaboration with
INSEAD and SC Ventures – our PLC Group’s innovat
ion, ﬁntech
investment and ventures arm. Our PLC Group also partnered
with Wise Platform, Wise’s global payments infrastructure for banks, to power faster and cheaper internat
ional payments for
the bank’s cross-border payment service, SC Remit. The partnership allows SC Remit customers in Asia and in the Middle East
to send money in 21 currencies includ
ing USD, CAD, EUR, GBP, SGD, HKD, JPY
in seconds.
Corporate and Investment Banking
In 2024, we sharpened our focus on serving the cross-border needs of our largest and most sophist
icated corporate and
ﬁnancial
inst
itut
ion clients who require risk management, ﬁnanc
ing and sector adv
isory expertise across Asia, Africa and
the Middle East.
Our network and experience, combined with our presence in valuable cross-border hubs, means that we can help clients
from around the world access these regions. We continue to connect capital ﬂows into Africa, the Middle East and Asia and
play a leading role in promoting sustainable ﬁnance. In 2024, in Africa we were involved in EUR533 mill
ion of ﬁnancing, backed
by the African Development Bank, for the government of Côte d’Ivoire and EUR1.29 bill
ion of ﬁnancing for the Angolan
Min
istry of F
inance to construct photovoltaic electric
ity d
istr
ibut
ion infrastructure.
Our clients are at the heart of what we do, everything we have done structurally in 2024 is about leveraging our platform so
that we can do more business with them.
We are scaling up where we can offer our clients a different
iated serv
ice, such as Securit
ies Serv
ices - capital
is
ing on local
custodian capabil
it
ies across Africa and the Middle East and the growing demand from ﬁnanc
ial
inst
itut
ions – as well
Sustainab
il
ity Finance, Islamic Banking and RMB International
isat
ion, all of which are being embedded into our global
business teams.
Their interests
•
Different
iated product and serv
ice offering
•
Dig
itally enabled and pos
it
ive exper
ience
• Sustainable ﬁnance
• Access to internat
ional markets
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
28
Regulators and Governments
How we create value
We engage with public authorit
ies to play our part
in supporting the effective function
ing of the ﬁnancial system and the
broader economy.
How we serve and engage
We engage with government, regulators and policy makers at the global, regional and national level as well as trade
associat
ions to share
ins
ights and support the development of best pract
ices and adoption of consistent approaches
across our markets. During 2024, we engaged on the following key topics:
•
Financ
ial serv
ices, includ
ing but not l
im
ited to prudent
ial regulations, ﬁnanc
ial markets, and ﬁnancial conduct and
ﬁnancial cr
ime.
•
Sustainable ﬁnance, across a wide range of sub-topics such as transit
ion ﬁnance, carbon markets, adaptat
ion & resil
ience,
and climate risk.
•
Technologies and dig
ital assets,
includ
ing for example stableco
in and crypto assets, dig
ital asset custody, data sovere
ignty
or the use of artif
ic
ial intell
igence (AI).
•
International trade and dig
ital trade such as d
ig
ital token
izable trade assets.
Their interests
•
Strong capital base and liqu
id
ity posit
ion
•
Robust standards for ﬁnancial conduct and ﬁnancial cr
ime
• Competit
ive econom
ies and markets
•
Sustainable Finance and net-zero transit
ion
•
Dig
ital
innovat
ion and use of AI
in ﬁnanc
ial serv
ices
• Operational resil
ience
•
Market integr
ity and customer protect
ion
• International and dig
ital trade
• Financ
ial stab
il
ity
Investors
How we create value
We aim to deliver robust returns and long-term sustainable value for our investors.
How we serve and engage
We rely on capital from debt and equity investors to execute our business model. Whether they have short or long-term
investment horizons, we provide our investors with informat
ion about progress aga
inst our strategic and ﬁnanc
ial
frameworks.
Through our PLC Group’s footprint and the execution of our sustainab
il
ity agenda, we provide our investors with exposure to
opportunit
ies
in emerging markets. We believe that our integrated approach to Environmental, Social and Governance (ESG)
issues and a strong risk and compliance culture, are key different
iators. We cont
inue to respond to growing interest from
a wide range of stakeholders on ESG matters, includ
ing
investors.
Regular and transparent engagement with our investors, and the wider market, helps us understand investors’ needs and
tailor our public informat
ion accord
ingly. In addit
ion to d
irect engagement via our Investor Relations team, we communicate
through half-year and full-year results, conferences, roadshows, investor days and media releases.
We continued to expand our use of virtual meetings during 2024, coupled with a growing number of face-to-face
interact
ions. Our PLC Group hosted an Afﬂuent Investor sem
inar in December and deep dive for Mainland Chinese
investors in September.
Key investor feedback, recommendations and requests are considered by our PLC Board, whose members keep abreast of
current topics of interest. Our PLC Group’s Annual General Meeting (AGM) in May was open to shareholders either in person
or electronically via a live video feed of the meeting. All partic
ipants had the opportun
ity to submit their votes and ask the
PLC Board questions.
Sim
ilarly, our PLC Group Cha
irman, alongside some members of the PLC Group Board, hosted a hybrid stewardship event
for inst
itut
ional investors in December provid
ing shareholders w
ith updates on a number of topics, includ
ing susta
inab
il
ity,
net zero and governance matters. The event included an open question-and-answer session
The PLC Group continues to respond to growing interest from a wide range of stakeholders on ESG matters, includ
ing
investors. In 2025, we will continue to engage with investors on progress against our strategic prior
it
ies and actions, as well as
our ﬁnancial framework as we progress towards del
iver
ing susta
inably higher returns.
Strategic report continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
29
Strategic report continued
Their interests
•
Safe, strong and sustainable ﬁnanc
ial performance
•
Facil
itat
ion of sustainable ﬁnance to meet the United Nations (UN) Sustainable Development Goals
•
Progress on ESG matters, includ
ing advanc
ing our net-zero agenda
Suppliers
Supporting a sustainable supply chain
The PLC Group measure and manage our Scope 3 upstream emiss
ions and work
in partnership with our suppliers to calculate
emiss
ions and set net zero targets where appropr
iate.
Supporting a diverse and inclus
ive supply cha
in
We are committed to build
ing mutually beneﬁcial relat
ionsh
ips w
ith our suppliers to reﬂect the diverse communit
ies and
cultures we operate in. To support this, our supplier divers
ity and
inclus
ion programme a
ims to direct spend and offer support
where appropriate, to small and diverse businesses.
Supplier divers
ity at Standard Chartered
incorporates businesses owned by under-represented ind
iv
iduals or groups –
such as women and ethnic minor
it
ies, as well as micro and small businesses.
To help drive our programme, we are corporate members of not-for-proﬁt organisat
ions ded
icated to supporting diverse
suppliers. This collaboration posit
ions us to
ident
ify and engage small and d
iverse suppliers, share in best practices, and
mainta
in awareness about d
iverse supplier needs.
In addit
ion, we engage and support our d
iverse suppliers with our PLC Group hosting two face-to-face supplier divers
ity
events in partnership WEConnect – a global network supporting women-owned businesses – in 2024. The events focused
on networking, sharing best practices in the sustainab
il
ity ﬁeld and supplier awards.
+ For further details of our PLC Group’s supplier divers
ity programme and suppl
ier awards events vis
it
[https://www.sc.com/en/suppliers/supplier-divers
ity-and-
inclus
ion/]
Their interests
•
Open, transparent and consistent tendering process
• Accurate and on-time payments
•
Will
ingness to adopt suppl
ier-driven innovat
ions
•
Obtain guidance on implementat
ion of susta
inab
il
ity matters
Society
How we create value
We strive to operate as a sustainable and responsible company, leveraging our partnerships, networks and expertise to help
transform our markets for long-term societal and environmental impact, create more inclus
ive econom
ies and increase
equitable prosperity.
How we serve and engage
Our Futuremakers partners
With the Standard Chartered Foundation, we advanced our strategic partnerships with NGOs and civ
il soc
iety organisat
ions
in support of Futuremakers by Standard Chartered, our PLC Group’s global youth economic empowerment in
it
iat
ive. Sh
ift
ing
to an impact-focused strategy, we’ve engaged our partners to co-design long-term programmes towards achiev
ing our PLC
Group’s target of enabling and supporting 140,000 decent jobs between 2024 and 2030.
To deepen our understanding of the impacts of our programmes, our PLC Group reﬁned our results monitor
ing framework
and developed a model to estimate the societal return on our Futuremakers investments. This provides a more holist
ic
analysis to enhance the impact potential of our programmes. We share learning from our new programmatic models
both across our portfolio and externally with our peers.
Our external stakeholders
We seek to promote greater economic inclus
ion through our networks, events and sponsorsh
ips. In collaboration with
Business Fights Poverty, we hosted various learning events, includ
ing a gender-focused panel d
iscuss
ion to celebrate
International Women’s Day and a thematic discuss
ion on Plugg
ing the ﬁnanc
ing gap for young entrepreneurs at the
ir
Global Goals Summit in Nairob
i and New York, dur
ing the United Nations General Assembly meetings. The aim of these
events was to ident
ify act
ionable strategies and innovat
ive partnersh
ips to address global challenges. In addit
ion, we
sponsored Women of the World Foundation (WOW) as their Global Girls’ Champion to run the WOW bus tour, bring
ing
gender equality learning to girls and young people across the UK, and we extended the WOW festival to Pakistan and
Turkey, reaching over 23,000 children and young people in half a year.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
30
Strategic report continued
Our colleagues
We encourage colleagues to give back to their communit
ies us
ing their three days paid volunteering leave. To enable
a volunteering culture, we gathered feedback and ins
ights from our employee volunteer
ing (EV) champions and ran a series
of workshops to develop an EV toolkit accessible to all colleagues. We are expanding our focus on skills-based volunteering
to leverage our colleagues’ skills-sets and deepen our community impact. This year we launched a global skills-based
volunteering week provid
ing learn
ing sessions and volunteering opportunit
ies to bu
ild awareness across the Bank. To drive
partic
ipat
ion, we organised train-the-trainer workshops to equip our colleagues with skills necessary to conduct ﬁnanc
ial
education and mentoring sessions with our community stakeholders.
Their interests
• Access to ﬁnance
• Economic inclus
ion
• Gender equity
• Skills-based volunteering
• Community impact
Employees
How we create value
We recognise that our workforce is key to driv
ing our performance and product
iv
ity and that the d
ivers
ity of our people,
cultures and network sets us apart. To be the best cross border and afﬂuent bank to our clients, our workforce composit
ion,
includ
ing the sk
ills and engagement of our people, is a strategic source of competit
ive advantage. So we are develop
ing a
workforce that is future ready, and are co-creating with our employees to build an inclus
ive,
innovat
ive and cl
ient-centric
culture.
How we serve and engage
By engaging employees and fostering a posit
ive exper
ience for them, we can better serve our clients and deliver on our
Purpose. A culture of inclus
ion and amb
it
ion enables us to unlock
innovat
ion, make better dec
is
ions, del
iver our business
strategy, live our valued behaviours and embody our brand promise. We proactively assess and manage people-related risks,
such as, capacity, capabil
ity and culture, as part of our PLC Group R
isk Management Framework. Our People Strategy,
approved by the PLC Board, is future-focused, with external events accelerating many of the future of work trends which
continue to inform our approach.
Their interests
Translating our here for good brand promise and Purpose of driv
ing commerce and prosper
ity through our unique divers
ity
into our colleagues’ day-to-day experience is crit
ical to us rema
in
ing an employer of cho
ice across our footprint. The research
we have on our Employee Value Proposit
ion (EVP) tells us that our ex
ist
ing and potent
ial employees want to: have interest
ing
and impactful jobs; innovate with
in a d
iverse set of markets and for a spectrum of clients; cultivate a brand that sustainably
drives commerce and offers enrich
ing careers and development; and be supported by great people leaders. They want these
elements to be anchored in competit
ive rewards and a pos
it
ive work–l
ife balance. The employment proposit
ion
is a key input
to our People Strategy which supports the delivery of our business strategy.
Listen
ing to employees
Frequent feedback from employee surveys helps us ident
ify and close gaps between colleagues’ expectat
ions and their
experience. Colleague sentiment is captured through an annual survey as well as regularly through a weekly survey and at
key moments, such as when employees join us, leave, and return to work after parental leave. In add
it
ion to leverag
ing inputs
from these surveys, the Court and Management Team also engage with and listen to the views of colleagues through
interact
ive sess
ions.
In 2024, our annual My Voice survey was conducted in May and June. Key measures of employee satisfact
ion have stayed
high, however there has been a decline year-on-year as the impact of our transformation continues to be felt. The experience
of working for the Bank remains a broadly posit
ive one. 78 per cent employees say that the Bank meets or exceeds the
ir
expectations, 96 per cent feel committed to doing what is required to help the Bank succeed, and 86 per cent feel proud
about working for the Bank. This underscores the strength of our EVP to attract, retain and grow the skills and talent that are
crit
ical to del
iver
ing our strategy and outcomes for cl
ients.
Driv
ing a culture of susta
inable high-performance
As the PLC Group transforms to achieve our strategic ambit
ions, we cont
inue to embed our refreshed approach to managing,
recognis
ing and reward
ing performance. We are embedding more regular performance and development conversations, as
well as increas
ing the exchange of two-way balanced, construct
ive feedback amongst peers, stakeholders and team
members. At the same time, we are encouraging greater aspirat
ion dur
ing goal-setting as well as placing even more focus on
recognis
ing outperformance,
includ
ing by enhanc
ing ﬂexib
il
ity in reward decis
ions. These hab
its that mark of culture of high
performance, have continued to strengthen each year – with more colleagues across PLC Group receiv
ing feedback
in the
system , as well as many using Appreciate, our new dig
ital platform launched
in early 2024 to enable democratised, hyper-
personalised, in-the-moment peer-to-peer recognit
ion.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
31
Strategic report continued
We recognise that wellbeing is a driver of sustainable high performance and productiv
ity, and are comm
itted to supporting
our colleagues’ wellbeing at an ind
iv
idual, team, and organisat
ional level. Th
is means focussing on prevention as well as cure,
and striv
ing to embed wellbe
ing into the ﬂow of work. Globally, colleagues have access to a range of tools and resources to
manage their wellbeing, includ
ing several progress
ive beneﬁts, a mental health app, access to 1:1 counselling or therapeutic
support, an employee assistance programme (through which professional counselling is also available), wellbeing toolkits,
and a network of trained mental health ﬁrst aiders. We continue to drive intervent
ions to further enable healthy work
ing
practices, includ
ing market-level exper
iments that we are running on sustainable working habits, promoting train
ing of
wellbeing champions, and embedding wellbeing skills (such as resil
ience and adaptab
il
ity)
into multiple learning
programmes.
Our continued commitment to embedding our ﬂexible working model (which was launched in 2021) that combines ﬂexib
il
ity
in working patterns, time and locations, is an important part of our efforts to enhance both the productiv
ity and exper
ience
of our workforce. Our model purposefully balances client needs and business prior
it
ies with ind
iv
idual choice, allowing us to
be inclus
ive of the d
iverse needs of our workforce. We continue to explore opportunit
ies for enhanc
ing ﬂexib
il
ity across further
markets and roles, where regulations and the nature of the work allow for it. We refreshed our toolkits and guidance to
people leaders and ind
iv
iduals to help navigate ﬂexible working and establish clear, consistent expectations for all
colleagues when working ﬂexibly. These include support on having regular conversations with teams on ﬂexi-work
arrangements; on organis
ing team and
ind
iv
idual work to enhance productiv
ity and wellbe
ing; on leading in key moments
such as onboarding new team members, returning from parental leave and during performance conversations; and on
strengthening connections in ﬂexible work environments. Colleagues continue to adopt ways of working that balance the
beneﬁts of remote working with face-to-face interact
ions to
innovate and collaborate, as we also continue to re-imag
ine our
physical workspaces with the relevant infrastructure and technology to provide hubs for teamwork, collaboration and
learning.
+ Read more about our approach to ﬂexible working at
sc.com/ﬂexiblework
ing
Build
ing leadersh
ip capabil
it
ies
Exceptional performance needs exceptional leadership, and we believe that our people leaders are crit
ical to unlock
ing the
potential of our workforce and how they experience the Bank every day. Engaging, developing, and measuring our people
leaders continues to be a crit
ical enabler of our performance and culture. Our Leadersh
ip Agreement sets out clear
expectations from our leaders to Aspire, Inspire and Execute. It also forms the foundation of our leadership development
curriculum through which one-third of our people leaders are being covered each year to help them build new skills and
habits across different leadership stages – includ
ing sk
ills on coaching, performance management in business-specif
ic
contexts, leading for transformation, and leading through ambigu
ity. Wh
ile people leaders continue to learn through
face-to-face leadership programmes during the year, leadership skill-build
ing
is also made accessible to all colleagues to
build the capabil
ity deeper
into the organisat
ion – through the Leadersh
ip Health journey of regular micro-learning activ
it
ies,
our ‘virtual escape room’ game for aspir
ing leaders, and exper
ient
ial bootcamps on creat
ing an environment of psychological
safety and innovat
ion.
People leaders continue to receive feedback, either through our ‘always on’ feedback tool available to all colleagues or
through the structured 360-degree feedback tool that is available to mid-to-senior people leaders; along with a consolidated
view of the environment they are creating for their teams, and feedback on their leadership skills, as part of their Leadership
Dashboard - bring
ing even greater transparency to performance and development conversat
ions, and highl
ight
ing the value
we place on leadership.
+ Read our Leadership Agreement at
sc.com/leadershipagreement
Developing skills of future strategic value and enabling careers
To keep pace with our strategic prior
it
ies, evolving customer expectations, ongoing transformation, and rapid technological
innovat
ion, we stay comm
itted to a ‘skills-led’ approach. We are focused on accelerating the development of future skills
among our workforce, bring
ing
in greater agil
ity to how sk
ills are deployed to areas of opportunity across the PLC Group and
embedding skills purposefully across key talent practices. We are supporting employees to build the skills needed for high
performance today, to reskill and upskill for tomorrow, and to be global cit
izens who understand the chang
ing nature of the
world in which we operate. This includes helping them strengthen a combinat
ion of human and techn
ical skills, as well as
enhancing a culture of continuous learning that empowers them to grow, increase their long-term employabil
ity and follow
their career aspirat
ions.
Build
ing of system
ic future-focused skills that are antic
ipated to be needed to keep pace w
ith the changes happening in the
sector (such as in sustainab
il
ity, innovat
ion, data, d
ig
ital and leadersh
ip) is balanced with role-focused performance skills; as
well as access to skill-build
ing
intervent
ions that enable role-to-role movement,
includ
ing
into crit
ical ‘future’ roles where our
strategic workforce planning analysis predicts an increas
ing need for talent. Such as, w
ith our increas
ing focus on enhanc
ing
our Afﬂuent client proposit
ion
in WRB, we are invest
ing
in deliver
ing upsk
ill
ing, resk
ill
ing and redeployment journeys for
colleagues to enable them to access opportunit
ies as the bus
iness segment grows. In CIB, we are focusing on sustainab
il
ity
capabil
it
ies and sales skills in line with our cross-border proposit
ion. These efforts a
im to ensure that our business growth and
transformation is closely linked with our workforce transformation.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
32
Strategic report continued
Learning in classrooms is combined with learning through our online learning platform, and colleagues are actively using one
or more of our Future Skills Academies which include the Data & Analytics, Dig
ital, Cyber, Cl
ient Advisory, Sustainable Finance
and Leadership Academies. Through ‘skills passports’ on our AI-enabled internal Talent Marketplace platform, employees
can sign up for projects (often cross-functional and cross-location) to build and practice skills on the job, can connect with
mentors, as well as can access more diverse roles based on skills adjacenc
ies. By comb
in
ing project opportun
it
ies w
ith
purposeful internal talent moves, we continue to enhance the career experience of colleagues and deploying their skills at
speed across our network has resulted in unlocking productiv
ity. We are also mak
ing it easier for colleagues to engage with
all that is available for growing their careers, through a range of resources and tools includ
ing a careers toolk
its, conversation
guides etc.
Creating an inclus
ive workplace
Our inclus
ive culture and comm
itment to divers
ity and
inclus
ion are a v
ital part of our employee value proposit
ion and what
enables us to drive business success. Through our multiple employee listen
ing surveys and supplemented by qual
itat
ive
feedback, we aim to better understand the lived experiences of our colleagues, and then act to make targeted, meaningful
changes to further drive inclus
ion and enhance the
ir experience. Our levels of inclus
ion rema
in high and is reﬂected in the 77.8
per cent of employees who shared posit
ive sent
iments in the 2024 annual survey.
We continue to invest in efforts towards increas
ing awareness around d
ivers
ity and
inclus
ion pr
inc
iples, unconsc
ious bias and
micro-behaviours as well as emphasise the importance of creating an inclus
ive env
ironment. Many of these aspects are
covered in the ‘When we’re all included’ learning programme, as well as the ‘Respect at Work’ e-learning programme that
helps understand what constitutes harassment, bullying, discr
im
inat
ion and v
ict
im
isat
ion, wh
ich continues to be mandatory
for all new joiners.
We are focused on further strengthening our inclus
ive culture, where all our people feel that the
ir ident
ity
is understood and
recognised for its uniqueness and anyone with the capabil
ity to excel can do so. Employees are prov
ided, where legally
permiss
ible, w
ith the abil
ity to share the
ir ident
ity data through our
internal employee portal. We are encouraging and
increas
ing self-declarat
ion (includ
ing soc
io-economic status in the UK) so that we can further improve colleague experience
by introduc
ing pol
ic
ies and
intervent
ions that are representat
ive of the needs of our diverse workforce.
We also remain focused on build
ing a workforce that
is truly representative of our client base and footprint. Our gender
divers
ity cont
inues to grow, with more women leaders moving up to senior roles. Women currently represent 50 per cent of
the Court, and representation of women in senior leadership roles increased to 29.6 per cent at the end of 2024. We are
committed to continuous improvement in this area and aspire to have 35 per cent representation
1
of women at a global
senior level across PLC Group by end of 2025. We continue to develop strategic partnerships and experiment with
programmes to widen our talent pools such as by launching the ‘Harnessing Africa’s Transformative Talent’ programme to
attract, retain, engage and develop Black and African talent, by improv
ing career mob
il
ity support
includ
ing through ‘buddy’
assistance, and by rolling out sponsorship programmes.
Leadership commitment stays crit
ical to our approach on D&I. Our Global D&I Counc
il is chaired by our CEO, WRB and
comprises enterprise-wide leaders representing various business, functions and geographies from across the PLC Group. The
Council is responsible for our overall PLC Group D&I strategy, direct
ion sett
ing, and overseeing the implementat
ion of
sustainable and measurable improvements. The Council is focused on developing a diverse talent pipel
ine to
improve
leadership representation, build
ing sponsorsh
ip muscle fostering posit
ive career progress
ion and refreshing our Employee
Resource Group approach to enhance colleague experience.
Equal Pay is a key princ
iple of our Fa
ir Pay Charter. Our commitment to paying colleagues fairly, recognis
ing sk
ills and
contribut
ions rather than any d
iscr
im
inatory factors, fosters an environment where all colleagues are given an equal chance
to succeed.
+ Read more about our approach towards strengthening divers
ity and
inclus
ion, as well as our approach to equal pay
in our
Divers
ity, Equ
ity & Inclusion Impact Report 2024 at
sc.com/fairpayreport
1
Subject to local legal requirements
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
33
Strategic report continued
Our approach to Sustainab
il
ity
Sustainab
il
ity is a strategic focus area for the Group, as we strive to promote inclus
ive growth and prosper
ity across the
markets where we operate.
The PLC Group’s approach to sustainab
il
ity supports the Group’s strategy, and is designed to deliver our purpose: to drive
commerce and prosperity through our unique divers
ity. Th
is is underpinned by our brand promise, here for good.
The approach is articulated through the PLC Group’s long-term sustainab
il
ity goals –Sustainab
il
ity Aspirat
ions – and short-
term sustainab
il
ity targets – the Sustainab
il
ity Strategic Pillars. The Aspirat
ions and P
illars set out how we intend to deliver
across our sustainab
il
ity agenda.
Sustainab
il
ity continues to be included in the 2024 PLC Group scorecard and 2024–26 Long-Term Incentive Plan (LTIP), which
include the Group employees, with performance measures that align with our Sustainab
il
ity Aspirat
ions and Susta
inab
il
ity
Strategic Pillars.
The Group’s strategy leverages the PLC Group’s sustainab
il
ity approach. This section sets out PLC Group’s progress against
the Sustainab
il
ity Aspirat
ions and Susta
inab
il
ity Strategic Pillars before we dive deeper into the material topics set out on
pages 33 to 34, includ
ing susta
inable ﬁnance, climate, nature and social impact.
+ For more informat
ion on our approach to susta
inab
il
ity see page 63 of PLC’s 2024 Annual Report
Sustainab
il
ity Aspirat
ions: our long-term goals
The PLC Group Sustainab
il
ity Aspirat
ions (
ind
icated below) are consol
idated into four overarching long-term goals, each
supported by key performance ind
icators. Together, these reﬂect our comm
itment to fostering sustainable social and
economic development in our markets.
•
Aspirat
ion 1: Mob
il
ise $300 b
ill
ion of susta
inable ﬁnance
•
Aspirat
ion 2: Operat
ional
ise our
inter
im 2030 ﬁnanced em
iss
ions targets to meet our 2050 net zero amb
it
ion
•
Aspirat
ion 3: Enhance and deepen the susta
inab
il
ity ecosystem
•
Aspirat
ion 4: Dr
ive social impact with our clients and communit
ies
Sustainab
il
ity Strategic Pillars: our short-term targets and immed
iate pr
ior
it
ies
The four Sustainab
il
ity Strategic Pillars represent our near-term strategic focus designed to drive momentum and accelerate
progress toward the longer-term Sustainab
il
ity Aspirat
ions.
•
Pillar 1: Scale sustainable ﬁnance income
•
Pillar 2: Further embed sustainab
il
ity across the organisat
ion
•
Pillar 3: Deliver on the annual milestones set forth in our net zero roadmap
•
Pillar 4: Leverage our Innovation Hubs
+ For more informat
ion on our susta
inab
il
ity aspirat
ions see page 64 of PLC’s 2024 Annual Report
Innovation Hubs
The PLC Group’s four thematic Innovation Hubs – Adaptation Finance1, Blended Finance Programmes, Carbon Markets and
Nature Finance – focus on emerging sustainab
il
ity themes that are nascent but ripe for scale, aligned to areas where the
Group has a core competency, and are particularly suited to clients in our footprint markets.
+ For more informat
ion on
innovat
ion hubs see page 66 of PLC’s 2024 Annual Report
Sustainable ﬁnance
Sustainable ﬁnance, includ
ing trans
it
ion ﬁnance,
is a crucial part of the sustainab
il
ity strategy and is therefore reﬂected in
both long-term Sustainab
il
ity Aspirat
ions and short-term Susta
inab
il
ity Strategic Pillars.
The PLC Group’s broad sustainable ﬁnance product suite, which includes bonds, loans, advisory and trade ﬁnance, is
underpinned by our sustainable ﬁnance frameworks that outline how we apply the ‘green’, ‘social’, ‘sustainable’ or ‘transit
ion’
labels across products and transactions. We also work with retail and wealth clients to mobil
ise d
iverse sources of capital in
support of social and environmental outcomes.
+ For more informat
ion on our approach to susta
inable ﬁnance see page 69 of PLC’s 2024 Annual Report
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
34
Strategic report continued
Climate
The PLC Group aims to reach net zero in ﬁnanced emiss
ions by 2050 and
in scope 1 and scope 2 emiss
ions by 2025. The Net
Zero Roadmap sets out the key steps needed to achieve this goal, and good progress has been made achiev
ing the goals set
for 2024.
PLC Group’s global footprint informs our unique understanding of the complexity associated with reaching the targets across
ﬁnanced and facil
itated em
iss
ions,
includ
ing a he
ightened focus on the security and resil
ience of our markets as they respond
to greater climate change induced uncertainty. As a ﬁnanc
ial
inst
itut
ion, the Group has an important role to play in
supporting our clients and markets as they navigate this complexity, while driv
ing and encourag
ing change in the real-world
economy.
+ For more informat
ion see page 74 of PLC’s 2024 Annual Report
Nature
It is estimated that over half of global GDP is directly dependent upon nature. Despite this, nature is rapidly declin
ing.
We acknowledge that protecting nature is essential to lim
it
ing global warming and mit
igat
ing the effects of climate change
and ensuring that the planet can sustain livel
ihoods as well as support
inclus
ive susta
inable economic development.
In 2024, the PLC Group published the inaugural
Nature Posit
ion Statement
outlin
ing our approach to nature across our
business, our clients, operations and supply chains. We seek to contribute to the Global Biod
ivers
ity Framework (GBF) 2030
miss
ion of halt
ing and reversing nature loss by: (1) continu
ing to
integrate nature in decis
ion-mak
ing with
in our bus
iness
(target 14); (2) publish
ing nature-related d
isclosures in alignment with Taskforce on Nature-related Financ
ial D
isclosures
TNFD recommendations from 2026 onwards (target 15); and (3) shift
ing ﬁnancial ﬂows toward nature pos
it
ive outcomes and
contribut
ing to mob
il
is
ing funding for nature and delivery of the GBF (target 19).
We are members of a wide range of industry platforms and memberships working to address nature-related challenges
and advance nature considerat
ions
in ﬁnanc
ial dec
is
ion mak
ing.
+ For more informat
ion see page 90 of PLC’s 2024 Annual Report
Social impact
We believe in the power of ﬁnance to drive posit
ive change
in the world. Our desire to drive social impact extends across both
our commercial and our philanthrop
ic act
iv
it
ies, reﬂecting our aspirat
ion to bu
ild a future that is both ﬁnanc
ially res
il
ient and
socially inclus
ive - th
is being a foundation for healthy and sustainable economies in our markets.
We approach social impact from two angles concurrently:
•
Through our business and clients: we provide clients with the ﬁnanc
ing that they and the
ir communit
ies need to tackle
urgent matters such as inequal
ity, access to essent
ial services, and inclus
ive growth.
•
Through our philanthrop
ic commun
ity engagement: we work to empower disadvantaged young people by provid
ing
them with skills and networks and connecting them with employment and commercial opportunit
ies.
+ For more informat
ion see page 91 of PLC’s 2024 Annual Report
Managing environmental risk
We seek to proactively manage environmental and social risks and impacts aris
ing from the Group’s cl
ient relationsh
ips and
transactions.
+ For more informat
ion see page 93 of PLC’s 2024 Annual Report
Integrity, conduct and ethics
We aim to live our valued behaviours, which are ‘Never settle’, ‘Better together’ and ‘Do the right thing’ through our actions,
decis
ions and
interact
ions day-to-day w
ith colleagues, clients and the markets we serve.
+ For more informat
ion see page 95 of PLC’s 2024 Annual Report
Sustainab
il
ity governance
Sustainab
il
ity-related risks, opportunit
ies and organ
isat
ional
impl
icat
ions are overseen by the PLC Group’s Board,
Management Team and supporting sub-committees.
+ For more informat
ion see page 98 of PLC’s 2024 Annual Report
Strategic report continued
Standard Chartered Bank
35
Directors’ Report and Financ
ial Statements 2024
Non-ﬁnancial and susta
inab
il
ity informat
ion statement
This table sets out where shareholders and stakeholders of the Group can ﬁnd key non-ﬁnanc
ial and susta
inab
il
ity
matters in this report. As the Company is a subsid
iary undertak
ing of PLC and included with
in PLC Group, compl
iance
with the non-ﬁnanc
ial and susta
inab
il
ity reporting requirements contained in sections 414 CA and 414 CB of the Companies
Act 2006 is achieved by reference to PLC Group activ
it
ies where relevant and to the PLC Group report available at sc.com
via
sc.com/sustainab
il
ityl
ibrary
Reporting requirement
Where to read more in this report about polic
ies,
impact
(includ
ing r
isks, policy embedding, due dil
igence and outcomes)
Business model
Pages 10 to 11
Risk Review (princ
ipal r
isks)
Page 19
Environment
•
Sustainable & Responsible Business Pages 33 to 34
•
Directors Report
Pages 36 to 42
Employees
Pages 30 to 32
Human rights
Page 23
Social matters
Page 29
Anti-corruption and anti-bribery
Page 55
Authority
The strategic report up to page 35 has been issued by order of the Court.
Bill Winters
Director
21 February 2025
Company Reference Number: ZC18
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
36
The directors present their report and the audited ﬁnanc
ial statements of Standard Chartered Bank and
its subsid
iar
ies
(the ‘Group’) and Standard Chartered Bank (the ‘Company’) for the year ended 31 December 2024. The Company has chosen
in accordance with Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations
2008 (the Regulations), to include certain matters in its Strategic report (see pages 1 -35) that would otherwise be disclosed
in this Directors’ report as required by paragraphs 2,6,10,11,12 of the Regulations.
Activ
it
ies
The activ
it
ies of the Group are banking and provid
ing other ﬁnancial serv
ices. The Group comprises a network of branches
and outlets in 51 markets. The Financ
ial Rev
iew on pages 14 to 17 contains a review of the business during 2024.
Key stakeholders
The long-term success of the Group is dependent on its relationsh
ips w
ith its key stakeholders. On pages 26 to 32 we outline
the ways in which we have engaged with key stakeholders, the material issues that they have raised with us, and how these
issues have been taken into account in the Court’s decis
ion-mak
ing processes.
Results and div
idends
The results for the year are given in the income statement on page 123.
Div
idends of $2,395 m
ill
ion were pa
id during the year to ordinary shareholders (2023: $2,599 mill
ion).
Share capital
Details of the Company’s share capital includ
ing the part
iculars of any share buy-backs are given in Note 27 to the accounts.
Loan capital
Details of the loan capital are given in Note 26 to the accounts.
Property, plant and equipment
Details of the property, plant and equipment of the Company are given in Note 17 to the accounts.
Financ
ial
instruments
Details of ﬁnanc
ial
instruments are given in Note 12 to the accounts.
Details of exposure to credit, traded, liqu
id
ity and funding risk can be found in the Risk Proﬁle section of the accounts.
Post balance sheet events
Details of post balance sheet events are given in Note 40 to the accounts.
Research and development
During the year, the PLC Group invested $2.13 bill
ion (2023: $2.01 b
ill
ion)
in research and development, of which $1.18 bill
ion
(2023: $0.99 bill
ion) was recogn
ised as an expense. The research and development investment primar
ily related to the
planning, analysis, design, development, testing, integrat
ion, deployment and
in
it
ial support of technology systems.
Future developments in the business of the Group
An ind
icat
ion of likely future developments in the business of the Group is provided in the Strategic report.
Directors’ Report
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
37
Directors’ Report continued
Directors and their interests
Mr A Halford (Resigned 2 January 2024)
Mr W Winters, CBE
Mr D De Giorg
i (Appo
inted 3 January 2024)
Mr S Apte
Ms G Huey Evans, CBE (Resigned 29 February 2024)
Ms J Hunt
Ms D Jurgens (Appointed 1 March 2024)
Ms R Lawther, CBE (Resigned 30 December 2024)
Mr L Leong (Appointed 2 November 2024)
Ms A McFadyen
Ms M Ramos
Ms S Ricke
Mr P Rivett
Mr D Tang (Resigned 9 May 2024)
Dr J Viñals
Dr L Yueh, CBE
Mr S Apte, MS J Hunt, Ms D Jurgens, Mr L Leong, Ms M Ramos, Mr P Rivett, and Dr L Yueh, CBE are all independent non-
executive directors.
Mr Halford resigned from the Company on 2 January 2024 and Mr D De Giorg
i was appo
inted a director of the Company
on 3 January 2024.
Ms G Huey Evans, Mr D Tang and Ms R Lawther, CBE resigned as a director of the Company with effect from 29 February
2024, 9 May 2024 and 30 December 2024, respectively.
Ms D Jurgens and Mr L Leong were appointed as directors of the Company with effect from 1 March 2024 and 2 November
2024, respectively.
None of the directors have a beneﬁc
ial or non-beneﬁcial
interest in the shares of the Company or in any of its subsid
iary
undertakings.
Details of directors’ pay and beneﬁts are disclosed in Note 37 to the accounts.
All of the directors as at 31 December 2024 (except Ms McFadyen and Ms Ricke) are directors of the Company’s ultimate
holding company, Standard Chartered PLC.
Director train
ing
Director induct
ion
Upon join
ing the Court, our directors are given a comprehensive tailored induct
ion programme.
Diane Jurgens was appointed as an INED on 1 March 2024. She undertook a formal induct
ion plan cons
ist
ing of a
combinat
ion of meet
ings with exist
ing Court members, sen
ior staff and external counsel, receiv
ing ta
ilored train
ing sess
ions
on topics includ
ing D
irectors’ Duties, Governance Requirements, Strategy, Risk and Finance and Banking and a deep dive into
topics relevant to her membership of the PLC Group’s Risk Committee. She also vis
ited some key markets on the overseas
Court trips to Shanghai and Beijing in April, to Mumbai in June and to Nairob
i
in November, a trip to Sil
icon Valley w
ith the
Group’s MT and vis
its to S
ingapore where she met with senior management. Diane also studied for an on-line Finance course
at Harvard and attended a ﬁnancial serv
ices conference in New York, where she met members of our US senior management
team.
Lincoln Leong was appointed as an INED in November 2024. Lincoln is undertaking an induct
ion programme cons
ist
ing of
a combinat
ion of meet
ings with exist
ing Court members, sen
ior staff and external counsel, receiv
ing ta
ilored train
ing sess
ions
on topics includ
ing D
irectors’ Duties, Governance Requirements, Strategy, Risk, Finance, and Cyber/AI and a deep dive into
topics relevant to his membership of the PLC Group’s Audit Committee.
The PLC Group’s Governance and Nominat
ion Comm
ittee reviews the induct
ion programme of all new INEDs. The
Committee is satisf
ied that all new INEDs have made excellent progress w
ith their induct
ion programmes.
Ongoing train
ing
Ongoing development plans ensure that directors lead with conﬁdence and integr
ity and promote the Group’s culture,
purpose and values. Mandatory learning and train
ing are also
important elements of directors’ ﬁtness and propriety
assessments as required under the UK Senior Managers and Certif
icat
ion Regime. During the year, all directors received
a combinat
ion of mandatory learn
ing, brief
ings, presentat
ions from guest speakers and papers on a wide range of topics
to ensure that they are well informed and that the Court remains highly effective. The table below gives further detail on
Directors’ train
ing th
is year.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
38
Directors’ Report continued
2024 director train
ing overv
iew
Sustainab
il
ity
Posit
ion
Statements
Artif
ic
ial
Intelligence
Geopolit
ical
Outlook: 2024
Elections and
their likely
impact on the
evolving
global order
ACG
Social
isat
ion
Recovery and
Resolvabil
ity
PLC Board
simulat
ion
exercise
BlueSky
Directors’
duties and
regulatory
updates
José Viñals
Bill Winters
Diego De Giorg
i
1
Shir
ish Apte
Alison McFadyen
Jackie Hunt
Diane Jurgensi
1
n/a
Robin Lawther
2
Maria Ramos
Phil Rivett
Sadia Ricke
Linda Yueh
Lincoln Leong
3
n/a
n/a
n/a
n/a
n/a
n/a
Director attended the session
Director was unable to attend the session but received any accompanying material and had opportunit
ies to ra
ise
questions and observations with the Group Chairman and Group Company Secretary
In 2024, Court members received brief
ings from and engaged w
ith diplomats, former polit
ical adv
isers and polit
ic
ians,
former leaders of internat
ional organ
isat
ions and econom
ists on topics includ
ing the evolv
ing geopolit
ical outlook,
the impact of the conﬂicts in the Middle East, the potential impact of the incom
ing adm
in
istrat
ion in the United States ,
the role of the global bank, the power and impact of technology in banking, regulatory developments and the global
macroeconomic environment.
Going concern
Having made appropriate enquir
ies, the Court
is satisf
ied that the Company and the Group as a whole have adequate
resources to continue in operation and meet their liab
il
it
ies as they fall due for a per
iod of at least 12 months from 21 February
2025 and therefore continue to adopt the going concern basis in preparing the ﬁnanc
ial statements.
Polit
ical donat
ions
The Group has a policy in place which prohib
its donat
ions being made that would: (i) improperly inﬂuence legislat
ion or
regulation, (i
i) promote pol
it
ical v
iews or ideolog
ies, (
i
i
i) fund polit
ical causes. In al
ignment to this, no polit
ical donat
ions
were made in the year ended 31 December 2024.
Qualify
ing Th
ird Party Indemnit
ies
The Company has granted indemn
it
ies to all of its directors on terms consistent with the applicable statutory provis
ions.
Qualify
ing th
ird-party indemn
ity prov
is
ions for the purposes of sect
ion 234 of the Companies Act 2006 were accordingly
in force during the course of the ﬁnanc
ial year ended 31 December 2024 and rema
in in force at the date of this report.
Qualify
ing Pens
ion Scheme Indemnit
ies
Qualify
ing pens
ion scheme indemn
ity prov
is
ions (as deﬁned by sect
ion 235 of the Companies Act 2006) were in force during
the course of the ﬁnancial year ended 31 December 2024 for the beneﬁt of the d
irectors of the UK’s pension fund corporate
trustee (Standard Chartered Trustees (UK) Lim
ited) and rema
in in force at the date of this report.
Areas of operation
The Company operates through branches and subsid
iar
ies in 51 markets across Asia, the Middle East, Africa, Europe and
the Americas.
1
Diego de Giorg
i and D
iane Jurgens jo
ined the Court on 3 January 2024 and 1 March 2024 respect
ively
2
Robin Lawther stepped down from the Court on 30 December 2024
3
Lincoln Leong jo
ined the Court on 2 November 2024
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
39
Directors’ Report continued
Related party transactions
Details of transactions with directors and ofﬁcers and other related parties are set out in Note 35 to the ﬁnanc
ial statements.
Corporate Governance Statement
The Group operates under the subsid
iary governance model. As the Group cont
inues to cover the vast major
ity of PLC Group’s
total footprint, the governance arrangements of the Company and PLC sim
ilarly reﬂect th
is overlap and is represented by a
predominately mirrored board structure between PLC and the Company.
As a wholly-owned subsid
iary of a l
isted PLC and its governance structure as a company established by Royal Charter, the
Company complies with expectations set for listed companies in accordance with the UK Corporate Governance Code (2018)
(the “Code”) where applicable with respect to board leadership, responsib
il
it
ies, compos
it
ion (
includ
ing success
ion and
evaluation), audit, risk and internal control, and remuneration to ensure that the Group is well managed, with appropriate
oversight and control. Certain matters, such as remuneration, values, and external audit, are set at PLC Group level and
considered or approved, if appropriate, by the Court. It is considered more appropriate for the purposes of Group wide
consistency that princ
iples are set at PLC Board level and then d
issem
inated through the Group to be approved by subs
id
iary
boards.
The Court is supported by four primary committees: Audit Committee; Risk Committee; Nominat
ion Comm
ittee; and US Risk
Committee. Each of the primary committees and the Court have implemented clear lines of responsib
il
ity and polic
ies
to support the Court in its effective decis
ion mak
ing. The Court also has a Standing Committee with a remit to approve
matters, on behalf of the Court, where a formal resolution is required for legal and regulatory purposes. The Court, and its
Nominat
ion, Aud
it and Risk Committees have sim
ilar membersh
ip as the Board of PLC and its Nominat
ion, Aud
it and Risk
Committees, with the appropriate balance, skills, background and experience to make a valued contribut
ion. The Court
Nominat
ion Comm
ittee is responsible for the oversight and review of Court succession and overall Court effectiveness. The
Court Audit Committee is responsible for the oversight and review of ﬁnanc
ial, aud
it, internal control and non-ﬁnanc
ial cr
ime
issues. The Court Risk Committee is responsible for the oversight and review of princ
ipal r
isks. The Committee Chairs report to
the Court on the Committees’ key areas of focus following each meeting. For further informat
ion on how the Nom
inat
ion
Committee, Audit Committee and Risk Committee operate (includ
ing
in respect of their compliance with the Code), please
see pages 123 to 133 and 137 to 141 of PLC’s 2024 Annual Report.
The Court, together with the PLC Group, are committed to high standards of engagement with employees, suppliers and
other stakeholders. For a descript
ion of how the d
irectors engaged with stakeholders, includ
ing as to how such engagement
has been considered in the Court’s decis
ion mak
ing, please refer to page 26.
+ A copy of the UK Corporate Governance Code can be found at
frc.org.uk
Employee polic
ies and engagement
We work hard to ensure that our employees are kept informed about matters affecting, or of interest to, them and more
importantly that they have opportunit
ies to prov
ide feedback and engage in a dialogue.
We strive to listen and act on feedback from colleagues to ensure internal communicat
ions are t
imely, informat
ive,
meaningful, and in support of our strategy and transformation. Pulse is our primary internal communicat
ions channel that
allows colleagues to receive company updates and informat
ion that
is personalised by role and location, sign up for events,
provide feedback, and navigate to other internal platforms. In addit
ion to targeted d
ig
ital commun
icat
ions, we also organ
ise
audio and video calls, virtual and face-to-face townhalls, and other staff engagement and recognit
ion events.
To continue to improve the way we communicate and ensure our employee communicat
ions rema
in relevant, we also
period
ically analyse and measure the
impact of our communicat
ions through a range of feedback tools,
includ
ing an annual
global internal communicat
ions survey. Our sen
ior leaders and people leaders play a crit
ical role
in engaging our teams
across the network, ensuring that they are kept up to date on key business developments related to our performance and
strategy. We offer addit
ional support to our sen
ior leaders and people leaders with specif
ic calls and commun
icat
ions packs
to help them provide context and guidance to their team members to better understand their role in executing and deliver
ing
our strategy.
Across the organisat
ion, regular team meet
ings with people leaders, one-to-one conversations and various management
meetings provide an important platform for colleagues to discuss and clarify key issues. Regular performance conversations
provide the opportunity to discuss how ind
iv
iduals, the team and the business area have contributed to our overall
performance and how recognit
ion and reward relate to th
is. Senior leadership also regularly shares global, business, function,
and market updates on performance, strategy, structural changes, HR programmes, community involvement and other
campaigns. The Court also engages with and listens to the views of the workforce through several sources, includ
ing through
interact
ive engagement sess
ions.
Employees past, present and future can follow our progress through the PLC Group’s LinkedIn network and Facebook page,
as well as other social network channels includ
ing Instagram and X.
The diverse range of internal and external communicat
ion tools and channels we have put
in place aim to ensure that all
colleagues receive timely and relevant informat
ion to support the
ir effectiveness.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
40
Directors’ Report continued
We work hard to ensure that our employees’ wellbeing is so that they can thrive at work and in their personal lives. Our PLC
Group min
imum standards prov
ide employees with a range of ﬂexible working options, in relation to both location and
working patterns. Employees are provided with at least thirty days’ leave (through annual leave and public holidays), and
new parents are provided a min
imum of twenty calendar weeks’ fully pa
id leave, irrespect
ive of gender, relat
ionsh
ip status or
how a child comes to permanently jo
in a fam
ily. These beneﬁts are in excess of the International Labour Organisat
ion’s (ILO)
min
imum standards.
We seek to mainta
in a mean
ingful relationsh
ip based on mutual trust and respect w
ith various employee representative
bodies (includ
ing un
ions and work councils). In our recognit
ion and
interact
ions, we are heav
ily inﬂuenced by the 1948 United
Nations Universal Declaration of Human Rights (UDHR), and several ILO conventions includ
ing the R
ight to Organise and
Collective Bargain
ing Convent
ion, 1949 (No. 98) and the Freedom of Associat
ion and Protect
ion of the Right to Organise
Convention, 1948 (No. 87). Working condit
ions and terms of employment of other employees are based on our Group and
country polic
ies, and
in accordance with ind
iv
idual employment contracts issued by the Group.
Employees’ concerns in relation to their employment or another colleague which cannot be resolved through informal
mechanisms such as counselling, coaching or mediat
ion, are dealt w
ith through our PLC Group Grievance Standard. This
includes concerns related to bullying, harassment, sexual harassment, discr
im
inat
ion and/or v
ict
im
isat
ion, as well as concerns
regarding condit
ions of employment (for example, work
ing practices or the working environment).
Employees can raise grievances to their People Leader or a Human Resources (HR) Representative. The global process for
addressing grievances involves an HR representative and a member of the business review
ing the gr
ievance, conducting fact
ﬁnding
into the grievance and provid
ing a wr
itten outcome to the aggrieved employee. Where employees raise concerns
regarding alleged wrongdoing pertain
ing to another employee or
in circumstances where the employee alleges wrongdoing,
but does not wish to raise a grievance, such concerns are invest
igated
in accordance with the PLC Group Investigat
ions
Standard.
If a grievance or invest
igat
ion is upheld, the next steps might include remedying a process, or in
it
iat
ing a d
isc
ipl
inary review of
the conduct of the colleague who is the subject of the concern. The PLC Group Grievance Standard and accompanying
process is reviewed on a period
ic bas
is in consultation with stakeholders across HR, Legal, Compliance and Shared
Investigat
ive Serv
ices. Grievance trends are reviewed on a quarterly basis and action is taken to address any concerning
trends.
There is a dist
inct PLC Group Speak
ing Up Policy and Standard which covers instances where an employee wishes to ‘blow
the whistle’ on actual, planned or potential wrongdoing by another employee or the Bank.
We are committed to creating a fair, consistent and transparent approach to making decis
ions
in a disc
ipl
inary context. This
commitment is codif
ied
in our Fair Accountabil
ity Pr
inc
iples, wh
ich underpin our PLC Group Disc
ipl
inary Standard. Dism
issals
due to misconduct issues and/or performance (where required by law to follow a disc
ipl
inary process) are governed by the
PLC Group Disc
ipl
inary Standard. Where local law or regulation requires a different process with regards to dism
issals and
other disc
ipl
inary outcomes, we have clearly documented country variances in place.
Our PLC Group Divers
ity and Inclus
ion Standard has been developed to ensure a diverse and inclus
ive workplace, w
ith fair
and equal treatment, and the provis
ion of opportun
it
ies for employees to part
ic
ipate fully and reach the
ir full potential in a
respectful working environment. All ind
iv
iduals are entitled to be treated with dign
ity and respect, and to be free from
harassment, bullying, discr
im
inat
ion and v
ict
im
isat
ion. Th
is helps to support productive working condit
ions, decreased staff
attrit
ion, pos
it
ive employee morale and engagement, ma
inta
ins employee wellbe
ing, and reduces people-related risk.
All colleagues are responsible for fostering an inclus
ive culture where
ind
iv
idual
ity and d
iffer
ing sk
ills, capabil
it
ies and
experience are understood, respected and valued. All colleagues, consultants, contractors, volunteers, interns, casual workers
and agency workers are required to comply with the Standard, includ
ing conduct
ing themselves in a manner that
demonstrates appropriate, non-discr
im
inatory behaviours.
We do not accept unlawful discr
im
inat
ion
in our recruitment or employment practices on any grounds includ
ing but not
lim
ited to: sex, race, colour, nat
ional
ity, ethn
ic
ity, nat
ional or ind
igenous or
ig
in, d
isab
il
ity, age, marital or civ
il partner status,
pregnancy or maternity, sexual orientat
ion, gender
ident
ity, express
ion or reassignment, HIV or AIDS status, parental status,
mil
itary and veterans status, ﬂex
ib
il
ity of working arrangements, relig
ion or bel
ief. We are committed to provide equal
opportunit
ies and fa
ir treatment in recruitment, appraisals, pay and condit
ions, tra
in
ing, development, success
ion planning,
promotion, grievance/disc
ipl
inary procedures and employment terminat
ion pract
ices, that are inclus
ive and access
ible; and
that do not directly or ind
irectly d
iscr
im
inate. Recruitment, employment, train
ing, development and promot
ion decis
ions are
based on the skills, knowledge and behaviour required to perform the role to the Group’s standards. Implied in all
employment terms is the commitment to equal pay for equal work. We also endeavour to make reasonable workplace
adjustments (includ
ing dur
ing the hir
ing process by g
iv
ing full and fa
ir considerat
ions to all appl
icat
ions) to ensure all
ind
iv
iduals feel supported and are able to partic
ipate fully and reach the
ir potential.
We aim to be a disab
il
ity conﬁdent organisat
ion w
ith a focus on removing barriers and improv
ing access
ib
il
ity. If employees
become disabled, we will aim to support them with appropriate train
ing and workplace adjustments where poss
ible and
support their career development and continued employment.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
41
Directors’ Report continued
Health, Safety and Wellbeing
Our Health, Safety and Wellbeing (HSW) vis
ion
is to support employee productiv
ity through a healthy and res
il
ient workforce,
and our miss
ion
is to deliver every day in a safe and secure resil
ient way. Our corporate HSW programme covers both mental
and physical health and wellbeing. We comply with both external regulatory requirements and internal policy and standards
for HSW in all markets. It is our policy to ensure that the more stringent of the two requirements is always met, ensuring our
HSW practices meet or exceed the regulatory min
imum. Compl
iance rates are reported at least biannually to each country’s
Management Team.
We follow the ILO code of practice on recording and notif
icat
ion of occupational accidents and diseases, as well as align
ing
to UK Health and Safety Executive (HSE), and ensuring we meet all local Health and Safety (H&S) regulatory reporting
requirements. We record and report all work-related illness and injuries, includ
ing sub-contractors, v
is
itors and cl
ients.
In 2024, we saw a reduction in serious work injuries in PLC Group with nil work-related fatalit
ies nor
ill health to report. Major
injuries (per the UK HSE deﬁn
it
ion) decreased from 21 in 2023 to 14 in 2024 in PLC Group, with fractures the most common type
of major in
jury (57 per cent). Overall, there is an increase of 6 percent in reported injuries in 2024 across PLC Group, with ‘slips/
trips/falls’ and ‘transport/commuting’ accidents remain
ing al
igned to or better than industry benchmarks. Hazards and
near- miss reports decreased 1 percent between 2023 and 2024 in PLC Group.
HSW performance and risks are reported annually to the PLC Group Risk Committee and Court Risk Committee. We use a
H&S management system and local regulatory compliance tracker across all countries to ensure a consistently high level of
H&S reporting and compliance for all our colleagues and clients.
In 2024, we refreshed our PLC Group Health Safety and Wellbeing Standards with enhanced focus on inc
ident management
through a clear process for timely invest
igat
ions, root cause analysis, and putting together corrective and preventive actions,
and on communicat
ing lessons learned. We enhanced contractor safety w
ith guidel
ines for select
ing, onboarding, and
managing contractors, and continuous monitor
ing and evaluat
ion of contractor performance to address the elevated H&S
risks faced by our contractors due to the nature of their work. In April 2024, we celebrated World Day for Safety and Health at
Work across the Group. Over 900 colleagues joined web
inars on topics of burnout and supporting resil
ience. We also
relaunched the Safety and Security Learning Pathway remind
ing how each employee can help ma
inta
in a safe work
ing
environment in the Group.
The Group sponsors medical and healthcare services for all employees, except in markets where cover is provided through
State-mandated healthcare, which represent less than 0.8 per cent of the PLC Group’s employees. More details on how we
support our colleagues’ wellbeing are on Page 39 of the PLC Group’s Annual Report.
Psychosocial risk is an area that an increas
ing number of H&S regulators are leg
islat
ing on. Psychosoc
ial risks are those that
cause physical or psychological harm, aris
ing from the des
ign or management of work, the work environment, workplace
interact
ions or behav
iours. In line with the Australia Work Health and Safety (Managing Psychosocial Hazards at Work) Code
of Practice 2024 a pilot study was conducted in Australia, assessing the psychosocial hazards and factors. In 2025 we aim to
expand our health and safety management systems to cover management of psychosocial risks.
In 2024, we achieved the WELL Equity Rating for nine key ofﬁce build
ings across the globe and ach
ieved the WELL Gold
Certif
icat
ion for Capitol Tower Hanoi Vietnam. Developed by the International WELL Build
ing Inst
itute (IWBI), the rating &
certif
icat
ion recognises our commitment to creating people ﬁrst workplaces that promote health, wellbeing, and equity, and
a sign
iﬁcant m
ilestone in our broader strategy toward enhancing social sustainab
il
ity.
Supply Chain Management
Our purchases of goods and services are governed through a third-party risk management framework through which we
aim to follow the highest standards in terms of selection of suppliers, due dil
igence and contract management.
For informat
ion about how the PLC Group engages w
ith suppliers on environmental and social matters, please see our
Supplier Charter and Supplier Divers
ity and Inclus
ion Standard.
The PLC Group publishes a Modern Slavery Statement annually under the UK Modern Slavery Act 2015 and Australian
Modern Slavery Act 2018. The PLC Group’s 2024 Modern Slavery Statement will be published at the same time as the PLC
Group Annual Report. This document sets out the actions the PLC Group has taken during 2024 to assess and manage the
risk of slavery, forced, bonded or compulsory labour, the worst forms of child labour, and human trafﬁck
ing (modern slavery)
in its operations and supply chain.
+ Our Supplier Charter and Supplier Divers
ity and Inclus
ion standard can be viewed at
sc.com/suppliercharter and sc.com/supplierd
ivers
ity
Directors’ Report continued
Standard Chartered Bank
42
Directors’ Report and Financ
ial Statements 2024
Product responsib
il
ity
The PLC Group has in place a risk framework, compris
ing pol
ic
ies, standards and controls to support these objectives
in
alignment with our Conduct Risk Management Approach. This framework covers sales practices, client communicat
ions,
appropriateness and suitab
il
ity, and post-sales practice. There are controls across all activ
it
ies above and the controls are
tested on a regular basis to provide assurance on the framework. As part of this, we ensure products sold are suitable for
clients and comply with relevant laws and regulations. We also review our products on a period
ic bas
is and reﬁne them to
keep them relevant to the changing needs of Clients and to meet regulatory obligat
ions.
We have processes and guidel
ines spec
if
ic to each of our Cl
ient industr
ies, to promptly resolve Cl
ient complaints, understand
and respond to client issues. Conduct considerat
ions are g
iven sign
iﬁcant we
ight
ing
in front-line incent
ive structures to dr
ive
the right behaviours.
For more informat
ion on our approach to product des
ign, product pric
ing, treat
ing Clients fairly and protecting vulnerable
customers, and incent
iv
is
ing our frontl
ine employees, see pages 26 and 27. For more informat
ion on fraud
ident
iﬁcation see
page 96 of PLC’s 2024 Annual Report.
Environmental impact of our operations
The PLC Group aims to min
im
ise the environmental impact of our operations as part of our commitment to be a responsible
company. The PLC Group reports on energy, water and non-hazardous waste data and the targets the PLC Group has set to
reduce energy, water and waste consumption.
The PLC Group’s reporting methodology is based upon the “The Greenhouse Gas Protocol – A Corporate Accounting and
Reporting Standard (Revised Edit
ion)”.
+ Information on the princ
iples and methodolog
ies used to calculate the GHG emiss
ions of the PLC Group can be found
in our
Environmental Reporting Criter
ia document at
sc.com/environmentcriter
ia
Reporting period
The reporting period of our Scope 1 and 2, emiss
ions
is from 1 October 2023 to 30 September 2024. This allows sufﬁc
ient t
ime
for independent assurance to be completed on our Scope 1 and Scope 2 emiss
ions pr
ior to the publicat
ion of the PLC Annual
Report. Accordingly, the operating income used in this inventory corresponds to the same time period rather than the
calendar year used in ﬁnanc
ial report
ing
Summary of Activ
it
ies of the Company’s Jersey Branch
Standard Chartered Bank Jersey Branch’s Afﬂuent banking activ
it
ies include deposit taking, lending and investment business
in accordance with Jersey laws and regulations.
Auditor
The Audit Committee reviews the appointment of the Group statutory auditor, its effectiveness and its relationsh
ip w
ith
the Group, which includes monitor
ing our use of the aud
itors for non-audit services and the balance of audit and non-audit
fees paid. Each director believes that there is no relevant informat
ion of wh
ich our Group statutory auditor is unaware.
Each has taken all reasonable steps necessary as a director to be aware of any relevant audit informat
ion and to establ
ish
that Ernst & Young LLP (EY) is made aware of any pertinent informat
ion. A resolut
ion to re-appoint EY as auditor was passed
at the 2024 PLC Annual General Meeting.
By order of the Court
Bill Winters
Director
21 February 2025
Company Reference Number: ZC18
Directors’ Report continued
Standard Chartered Bank
43
Directors’ Report and Financ
ial Statements 2024
Statement of directors’ responsib
il
it
ies
The directors are responsible for preparing the Directors’ Report and the Group and Company Financ
ial Statements
in
accordance with applicable law and regulations.
Company law requires the directors to prepare Group and Company ﬁnanc
ial statements for each ﬁnancial year. Under that
law they are required to prepare the Group ﬁnanc
ial statements
in accordance with internat
ional account
ing standards in
conformity with the requirements of the Companies Act 2006 and with International Financ
ial Report
ing Standards as
adopted by the European Union (EU IFRS) and applicable law, and the Company ﬁnanc
ial statements
in accordance with
internat
ional account
ing standards in conformity with the requirements of the Companies Act 2006.
Under company law the directors must not approve the ﬁnanc
ial statements unless they are sat
isf
ied that they g
ive a true
and fair view of the state of affairs of the Group and Company and of their proﬁt or loss for that period. In preparing each
of the Group and Company ﬁnancial statements, the d
irectors are required to:
•
Select suitable accounting polic
ies and then apply them cons
istently;
•
Make judgements and estimates that are reasonable, relevant and reliable;
•
State whether they have been prepared in accordance internat
ional account
ing standards in conformity with the
requirements of the Companies Act 2006 and with EU IFRS;
•
Assess the Group and the Company’s abil
ity to cont
inue as a going concern, disclos
ing, as appl
icable, matters related
to going concern; and
•
Use the going concern basis of accounting unless they either intend to liqu
idate the Group or the Company or to cease
operations or have no realist
ic alternat
ive but to do so.
The directors are responsible for keeping adequate accounting records that are sufﬁc
ient to show and expla
in the
Company’s transactions and disclose with reasonable accuracy at any time the ﬁnanc
ial pos
it
ion of the Company and
enable them to ensure that its ﬁnanc
ial statements comply w
ith the Companies Act 2006. They are responsible for such
internal control as they determine is necessary to enable the preparation of ﬁnanc
ial statements that are free from mater
ial
misstatement, whether due to fraud or error, and have general responsib
il
ity for taking such steps as are reasonably open
to them to safeguard the assets of the Group and to prevent and detect fraud and other irregular
it
ies.
Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report and Directors’
Report that complies with that law and those regulations.
Responsib
il
ity statement of the directors in respect of the Directors’ Report and Financ
ial Statements
We conﬁrm that to the best of our knowledge:
•
The ﬁnancial statements, prepared
in accordance with the applicable set of accounting standards, give a true and fair
view of the assets, liab
il
it
ies, ﬁnancial pos
it
ion and proﬁt or loss of the Company and the undertak
ings included in the
consolidat
ion taken as a whole; and
•
The Strategic Report includes a fair review of the development and performance of the business and the posit
ion of
the Company and the undertakings included in the consolidat
ion taken as a whole, together w
ith a descript
ion of the
emerging risks and uncertaint
ies that they face.
We consider the Directors’ Report and Financ
ial Statements, taken as a whole to be fa
ir, balanced and understandable and
provides the informat
ion necessary to assess the Group’s pos
it
ion and performance, bus
iness model and strategy.
By order of the Court
Diego De Giorg
i
Director
21 February 2025
Standard Chartered Bank
44
Directors’ Report and Financ
ial Statements 2024
Risk review and Capital review
The following parts of the Risk review and Capital review form part of these ﬁnanc
ial statements –
•
a) Risk review:
Disclosures marked as ‘audited’ from the start of Credit Risk section (page 45) to the end of other princ
ipal
risks in the same section (page 108); and
•
b) Capital review:
Tables marked as ‘audited’ from the start of ‘Capital base’ (page 109) to the end of ‘Total capital’ (page
110).

Risk update |  | Page number
Risk management | Risk Management Framework | 45
approach | Princ ipal r isks | 50
Risk proﬁle | Credit Risk | 58
| Basis of preparation | 58
| Credit Risk overview | 58
| Impairment model | 58
| Staging of ﬁnanc ial instruments | 58
| IFRS 9 expected credit loss princ iples and approaches | 58
| Summary of Credit Risk performance | 59
| Maximum exposure to Credit Risk | 60
| Analysis of ﬁnanc ial instrument by stage | 62
| Credit quality analysis | 66
| • Credit quality by client segment | 66
| Movement in gross exposures and credit impa irment for loans and advances, debt secur it ies, | 71
| undrawn commitments and ﬁnanc ial guarantees |
| Credit impa irment charge | 76
| Problem credit management and provis ion ing | 76
| • Forborne and other modif ied loans by cl ient segment | 76
| Credit Risk mit igat ion | 77
| • Collateral | 77
| • Collateral held on loans and advances | 78
| • Collateral – Corporate and Investment Banking | 79
| • Collateral – Wealth and Retail Banking | 80
| • Mortgage loan-to-value ratios by geography | 81
| • Collateral and other credit enhancements possessed or called upon | 81
| • Other Credit Risk mit igat ion | 81
| Other portfolio analysis | 82
| • Contractual maturity analysis of loans and advances by client segment | 82
| • Credit quality by industry | 83
| • Debt securit ies and other el ig ible b ills | 87
| IFRS 9 expected credit loss methodology | 88
| Traded Risk | 96
| Market Risk changes | 96
| Counterparty Credit Risk | 99
| Derivat ive ﬁnancial instruments Credit Risk mit igat ion | 99
| ity and Funding Risk Liqu id | 99
| ity and Funding Risk metrics Liqu id | 99
| ity analysis of the Group’s balance sheet Liqu id | 101
| Interest Rate Risk in the Banking Book | 106
| Operational and Technology Risk | 107
| Operational and Technology Risk proﬁle | 107
| Other princ ipal r isks | 108
Capital | Capital management and governance | 109
| Capital ratios | 109
| Capital base | 110
| Leverage ratio | 110

Risk Proﬁle
Risk Management Framework
Risk management is at the heart of banking; it is what we do. Managing risk effectively is how we drive commerce and
prosperity for our clients and our communit
ies, and
it is how we grow sustainably and proﬁtably as an organisat
ion.
Effective risk management is essential in deliver
ing cons
istent and sustainable performance for all our stakeholders and
is a central part of the ﬁnanc
ial and operat
ional management of the Group. The Group adds value to clients and the
communit
ies
in which they operate by balancing risk and reward to generate returns for shareholders.
The Risk Management Framework (RMF) enables the Group to manage enterprise-wide risks, with the object
ive of
maxim
is
ing risk-adjusted returns while remain
ing w
ith
in our R
isk Appetite (RA). The RMF has been designed in accordance
with the PLC Group’s Enterprise Risk Management Framework (ERMF). It is reviewed and approved by the SC Bank Court
annually, with the latest version being effective from August 2024.
Risk culture
Risk culture encompasses our general awareness, attitudes, and behaviours towards risk, as well as how risk is managed
at enterprise level.
A healthy risk culture is one in which everyone takes personal responsib
il
ity to ident
ify and assess, openly d
iscuss, and take
prompt action to address exist
ing and emerg
ing risks. We expect our control functions to provide oversight and challenge
constructively, collaboratively, and in a timely manner on the risks that are owned by the ﬁrst line of defence. This effort is
reﬂected in our valued behaviours and underpinned by our Code of Conduct and Ethics.
> Further details on our
Code of Conduct and Ethics
can be found on page 95 of SC PLC Group 2024 Annual Report.
The risks we face constantly evolve, and we must always look for ways to manage them as effectively as possible. Whilst
unfavourable outcomes will occur from time to time, a healthy risk culture means that we react quickly and transparently.
We can then take the opportunity to learn from our experience and improve our framework and processes.
Strategic risk management
The Group’s approach to strategic risk management includes the following:
•
Risk ident
iﬁcation:
impact analyses of risks that arise from the Group’s growth plans, strategic in
it
iat
ives, and bus
iness
model vulnerabil
it
ies are reviewed. This assesses how exist
ing r
isks have evolved in terms of relative importance and
whether new risks have emerged.
•
Risk Appetite:
impact analysis is performed to assess if strategic in
it
iat
ives can be ach
ieved with
in RA and h
ighl
ight areas
where addit
ional RA should be cons
idered.
•
Stress testing:
ident
iﬁed r
isks are used to develop scenarios for enterprise stress tests.
Roles and responsib
il
it
ies
1
Senior Managers Regime
Roles and responsib
il
it
ies under the RMF are al
igned to the object
ives of the UK Sen
ior Managers and Certif
icat
ion Regime.
The Group Chief Risk Ofﬁcer (GCRO) is responsible for the overall development and maintenance of the Group’s RMF and for
ident
ify
ing material risks which the Group may be exposed to. The GCRO delegates effective implementat
ion of the R
isk
Type Frameworks (RTF) to Risk Framework Owners (RFO), who provide second line of defence oversight for their respective
PRTs.
The Risk function
The Risk function provides oversight and challenge on the Group’s risk management, ensuring that business is conducted in
line with regulatory expectations. The GCRO directly manages the Risk function, which is independent from the orig
inat
ion,
trading, and sales functions of the businesses. The Risk function is responsible for:
•
proposing the RA for approval by the SC Bank Court
•
mainta
in
ing the RMF, ensuring that it remains relevant and appropriate to the Group’s business activ
it
ies, and is effectively
communicated and implemented across the Group
•
ensuring that risks are properly assessed, risk and return decis
ions are transparent and r
isks are controlled in accordance
with the PLC Group’s standards and RA
•
overseeing and challenging the management of PRTs under the RMF
•
independence of the Risk function by ensuring that the necessary balance in making risk and return decis
ions
is not
compromised by short-term pressures to generate revenues.
The Risk function supports the Group’s strategy by build
ing a susta
inable RMF that places regulatory and compliance
standards, together with culture of appropriate conduct, at the forefront of the Group’s agenda.
1
Senior managers refer to ind
iv
iduals designated as senior management functions under the FCA and PRA Senior Managers Regime.
Standard Chartered Bank
45
Directors’ Report and Financ
ial Statements 2024
Risk Proﬁle continued
Standard Chartered Bank
46
Directors’ Report and Financ
ial Statements 2024
Our Compliance, Financ
ial Cr
ime and Conduct Risk (CFCR) function
2
works alongside the Risk function with
in the RMF to
deliver a unif
ied second l
ine of defence. Compliance Risk and Financ
ial Cr
ime Risk, as PRTs, fall under the scope of the
CFCR’s responsib
il
it
ies.
Three lines of defence model
The Group applies a three lines of defence model to its day-to-day activ
it
ies for effective risk management, and to reinforce
a strong governance and control environment. Typically:
•
Businesses and functions engaged in or supporting revenue generating activ
it
ies that own and manage risks constitute the
ﬁrst line of defence.
•
Control functions, independent of the ﬁrst line of defence, that provide oversight and challenge of risk management
activ
it
ies act as the second line of defence.
•
Internal Audit acts as the third line of defence, provid
ing
independent assurance on the effectiveness of controls supporting
the activ
it
ies of the ﬁrst and second lines of defence.
Each PRT has an RTF which outlines the areas of governance and risk management and is the formal mechanism through
which authorit
ies are delegated. R
isk management plans, processes, activ
it
ies, and resource allocations are consistent with
the three lines of defence model prescribed by the RMF.
Risk ident
iﬁcation and assessment
Identif
icat
ion and assessment of potentially adverse risk events is an essential ﬁrst step in managing the risks of any business
or activ
ity. To ensure cons
istency, we use PRTs to classify our risk exposures. However, we also recognise the need to mainta
in
a holist
ic perspect
ive since:
•
a single transaction or activ
ity may g
ive rise to multiple types of risk exposure
•
risk concentrations may arise from multiple exposures that are closely correlated
•
a given risk exposure may change its form from one risk type to another.
There are also sources of risk that arise beyond our own operations, such as the Group’s dependency on suppliers for the
provis
ion of serv
ices and technology.
As the Group remains accountable for risks aris
ing from the act
ions of such third parties, failure to adequately monitor
and manage these relationsh
ips could mater
ially impact the Group’s abil
ity to operate.
The Group mainta
ins a taxonomy of r
isks inherent to the strategy and business model, as well as a risk inventory which
captures ident
iﬁed r
isks, includ
ing the TERs to wh
ich the Group is or might be exposed to. Multiple ident
iﬁcation and
assessment techniques are used to ensure breadth and depth of understanding of the internal and external risk environment,
as well as potential opportunit
ies. A r
isk assessment of the corporate plan is undertaken annually, supplemented by risk
assessments of new in
it
iat
ives. R
isk ident
iﬁcation ﬁndings
inform the related risk oversight process, and most importantly RA
and controls setting, scenario selection and design, and model reﬁnement and development.
The GCRO and the Standard Chartered Bank Executive Risk Committee (SCB ERC) regularly review reports on the risk proﬁle
for the PRTs, adherence to Group RA, stress test results and the Group risk inventory, includ
ing TERs.
Risk Appetite and proﬁle
The Group recognises the following constraints which determine the risks that we are will
ing to take
in pursuit of our strategy
and the development of a sustainable business:
•
Risk capacity is the maximum level of risk the Group can assume, given its current capabil
it
ies and resources, before
breaching constraints determined by capital and liqu
id
ity requirements or the internal operational environment, or
otherwise fail
ing to meet the expectat
ions of regulator and law enforcement agencies.
•
RA is deﬁned by the Group and approved by the Court. It is the boundary for the risk that the Group is will
ing to undertake
to achieve its strategic object
ives and corporate plan. We set RA to enable us to grow susta
inably whilst managing our
risks, giv
ing conﬁdence to our stakeholders. The RA
is supplemented by risk control tools such as granular-level lim
its,
polic
ies and standards to ma
inta
in the Group’s r
isk proﬁle with
in approved RA.
The Court is responsible for approving the RA Statements, which are underpinned by a set of ﬁnanc
ial and operat
ional
control parameters known as RA metrics and their associated thresholds. These set boundaries for the aggregate risk
exposures that can be taken across the Group.
The Group RA is reviewed bi-annually to ensure that it is ﬁt for purpose and aligned with strategy, with focus given to new
or emerging risks.
2
From 1 January 2025, our Conduct, Financ
ial Cr
ime and Compliance (CFCC) function was renamed as Compliance, Financ
ial Cr
ime and Conduct Risk (CFCR)
Risk Proﬁle continued
Standard Chartered Bank
47
Directors’ Report and Financ
ial Statements 2024
Risk Appetite Statement
“The Group’s objective
is to not compromise adherence with its RA in order to pursue revenue growth or higher returns”.
See the table on page 48 for the set of RA Statements.
Stress testing
The objective of stress test
ing is to support the PLC Group in assessing that it:
•
does not have exposure to excessive risk concentrations that could produce unacceptably high losses under severe but
plausible scenarios;
•
has sufﬁcient ﬁnancial resources to w
ithstand severe but plausible scenarios;
•
has the ﬁnancial ﬂex
ib
il
ity to respond to extreme but plausible scenarios;
•
understands key business model risks and considers what kind of event might crystallise those risks – even if extreme
and with a low likel
ihood of occurr
ing;
•
ident
iﬁes as requ
ired, actions to mit
igate the l
ikel
ihood or
impact of those events; and
•
has set RA metrics at appropriate levels.
The PLC Group enterprise stress tests incorporate capital and liqu
id
ity adequacy stress tests, includ
ing recovery and
resolution, as well as reverse stress tests.
Stress tests are performed at PLC Group, Solo, country, business, and portfolio level under a wide range of risks and at varying
degrees of severity.
Based on the stress test results, the Group Chief Financ
ial Ofﬁcer (GCFO) and GCRO can recommend strateg
ic actions to the
Court to ensure that the Group’s strategy remains with
in RA.
In addit
ion, analys
is is run at the PRT level to assess specif
ic r
isks and concentrations that the Group may be exposed to.
These include qualitat
ive assessments such as stress
ing of credit sectors or portfolios, and quantitat
ive assessments such
as potential losses from severe but plausible market risk scenarios or internal stressed liqu
id
ity metrics.
Stress testing plays a crit
ical role
in assessing the potential impact on portfolio values of extreme but plausible scenarios,
leading to potential losses typically much larger than those predicted by the Value at Risk (VaR) model. The Group uses
histor
ical and forward-look
ing scenarios. A common set of scenarios is used across all legal entit
ies complemented
in some
cases with entity-specif
ic scenar
ios. RA for market risk stress losses is set at the Group as well as legal entity level.
Non-ﬁnancial r
isk types are also stressed to assess the necessary capital requirements under the Operational and
Technology RTF.
The PLC Group has also undertaken a number of Climate Risk stress tests, both those mandated by regulators as well
as management scenarios.
Risk Proﬁle continued
Standard Chartered Bank
48
Directors’ Report and Financ
ial Statements 2024
Princ
ipal R
isk Types
PRTs are those risks that are inherent in our strategy and business model and have been formally deﬁned in the Group’s RMF.
These risks are managed in line with the PLC Group’s RTFs which are cascaded to the Group.
The PRTs and associated RA Statements are approved by the Court, and reviewed annually.
The table below shows the Group’s current PRTs, their deﬁn
it
ion and RA Statements.

Princ ipal R isk Type | Deﬁnit ion | Risk Appetite Statement
Credit Risk | Potential for loss due to failure of a counterparty to | The Group manages its credit exposures following the
| meet its agreed obligat ions to pay the Group. | princ iple of d ivers iﬁcation across products, geograph ies,
|  | client segments and industry sectors.
Traded Risk | Potential for loss resulting from activ it ies undertaken | The Group should control its ﬁnanc ial markets act iv it ies
| by the Group in ﬁnanc ial markets. | to ensure that Market and Counterparty Credit Risk
|  | losses do not cause material damage to the Group’s
|  | franchise.
Treasury Risk | Potential for insuff ic ient capital, liqu id ity, or funding to | Indiv idual regulated ent it ies w ith in the Group should
| support our operations, the risk of reductions in earnings | mainta in sufﬁcient cap ital, liqu id ity, and funding to
| or value from movements in interest rates impact ing | support its operations, and an interest rate proﬁle
| banking book items and the potential for losses from | ensuring that the reductions in earnings or value from
| a shortfall in the Group’s pension plans. | movements in interest rates impact ing bank ing book
|  | items does not cause material damage to the Group’s
|  | franchise. In addit ion, the Group should ensure its
|  | pension plans are adequately funded.
Operational and | Potential for loss resulting from inadequate or | The Group aims to control operational and technology
Technology Risk | failed internal processes, technology events, | risks to ensure that operational losses (ﬁnanc ial or
| human error, or from the impact of external events | reputational), includ ing those related to the conduct
| (includ ing legal r isks). | of business matters, do not cause material damage to
|  | the Group’s franchise.
Information and | Risk to the Group’s assets, operations, and ind iv iduals | The Group aims to mit igate and control ICS r isks to
Cyber Security (ICS) | due to the potential for unauthorised access, use, | ensure that inc idents do not cause the Bank mater ial
Risk | disclosure, disrupt ion, mod if icat ion, or destruction of | harm, business disrupt ion, ﬁnancial loss or reputat ional
| informat ion assets and/or informat ion systems. | damage – recognis ing that wh ilst inc idents are
|  | unwanted, they cannot be entirely avoided.
Financ ial Cr ime Risk 3 | Potential for legal or regulatory penalties, material | The Group has no appetite for breaches of laws and
| ﬁnancial loss or reputat ional damage resulting from the | regulations related to ﬁnanc ial cr ime, recognis ing
| failure to comply with applicable laws and regulations | that whilst inc idents are unwanted, they cannot be
| relating to internat ional sanct ions, anti-money | entirely avoided.
| laundering and anti-bribery and corruption, and fraud. |
Compliance Risk | Potential for penalties or loss to the Group or for an | The Group has no appetite for breaches of laws and
| adverse impact to our clients, stakeholders or to the | regulations related to regulatory non-compliance;
| integr ity of the markets we operate in through a failure | recognis ing that wh ilst inc idents are unwanted, they
| on our part to comply with laws, or regulations. | cannot be entirely avoided.
Environmental, | Potential or actual adverse impact on the environment | The Group aims to measure and manage ﬁnanc ial and
Social and | and/or society, the Group’s ﬁnanc ial performance, | non-ﬁnancial r isks aris ing from cl imate change, reduce
Governance and | operations, or the Group’s name, brand or standing, | emiss ions in line with our net zero strategy and protect
Reputational | aris ing from env ironmental, social or governance | the Group from material reputational damage by
(ESGR) Risk | factors, or as a result of the Group’s actual or perceived | upholding responsible conduct and striv ing to do no
| actions or inact ions. | sign iﬁcant env ironmental and social harm.
Model Risk | Potential loss that may occur because of decis ions | The Group has no appetite for material adverse
| or the risk of mis-estimat ion that could be pr inc ipally | impl icat ions aris ing from m isuse of models or errors
| based on the output of models, due to errors in the | in the development or implementat ion of models,
| development, implementat ion, or use of such models. | whilst accepting some model uncertainty.

3
Fraud forms part of the Financ
ial Cr
ime RA Statement but, in line with market practice, does not apply a zero-tolerance approach
As of November 2024, Climate Risk RA statement is integrated into the ESGR PRT.
Risk Proﬁle continued
Standard Chartered Bank
49
Directors’ Report and Financ
ial Statements 2024
RMF effectiveness reviews
Effectiveness review of the RMF is managed as part of the PLC Group ERMF effectiveness review. At Group level,
a self-assessment is conducted to assess the overall effectiveness of the RMF, and the results are taken into considerat
ion
in the ERMF effectiveness review. The GCRO is responsible for annually afﬁrm
ing the effect
iveness of the RMF to the
Court Risk Committee (CRC).
The RMF effectiveness review measures year-on-year progress. Ongoing effectiveness reviews allow for a structured
approach to ident
ify
improvement opportunit
ies and bu
ild plans to address them.
In 2025, the Group aims to further strengthen its risk management practices by improv
ing the management of non-ﬁnancial
risks with
in
its businesses, functions and across our footprint. As the regulatory environment continuously changes, the Group
constantly monitors regulatory developments and take pro-active actions for compliance.
Executive and Board risk oversight
Overview
The corporate governance and committee structure helps the Group to conduct our business. The Court has ultimate
responsib
il
ity for risk management and approves the RMF based on the recommendation of the Court Risk Committee, which
also recommends the Group RA Statement for all PRTs and other risks. The Court comprises of the major
ity of the
independent non-executive directors from the PLC Board, executive directors from the PLC Board as well as an executive
director and non-executive director who are appointed solely to the Court with the specif
ic purpose of prov
id
ing
independent
decis
ion mak
ing at the Court meetings.
Court and Executive level risk committee governance structure
The Committee governance structure below presents the view as of 2024.

| COURT |
| COURT LEVEL COMMITTEES¹ |
|  |  | Combined United States
Court Risk Committee | Court Audit Committee | Court Nominat ion | and Risk Committee
|  | Committee | Operations
|  |  | (US Risk Committee)

1
The Court also has a Standing Committee with a remit to approve matters, on behalf of the Court, where a formal resolution is required for legal and regulatory purposes
Court Risk Committee
The CRC is concerned with the oversight and review of princ
ipal r
isks.
Court Audit Committee
The Court Audit Committee is concerned with the oversight and review of ﬁnanc
ial, aud
it, internal control and non-ﬁnanc
ial
crime issues.
Court Nominat
ion Comm
ittee
The Court Nominat
ion Comm
ittee is responsible for oversight and review of the composit
ion of, and appo
intments to the
Company’s Court, and the development of a diverse pipel
ine for success
ion.
Combined United States Operations and Risk Committee (US Risk Committee)
The Committee is appointed by the SC Bank Court to oversee risk and governance of the Combined US Operations (CUSO)
to ensure compliance with the Dodd-Frank Act section 165 Enhanced Prudential Standards in particular for the requirements
relating to the responsib
il
it
ies of the US R
isk Committee and the US Chief Risk Ofﬁcer. The Committee is responsible for
approval and oversight of the US strategy, the Risk Management Framework and associated polic
ies, and the R
isk Appetite
Statement and metrics for CUSO. The Committee also approves the remuneration and performance object
ives of key
US Ofﬁcers. Membership of the Committee is comprised of directors of the SC Bank or PLC Group, includ
ing at least one
independent non-executive director and one member with sign
iﬁcant r
isk management experience.
The Group has two management level committees, namely the SCB ERC and Solo & Standard Chartered Bank UK (Branch)
Asset and Liab
il
ity Management Committee (Solo & SCB ALCO).
Risk Proﬁle continued
Standard Chartered Bank
50
Directors’ Report and Financ
ial Statements 2024
Standard Chartered Bank Executive Risk Committee
SCB ERC is responsible for ensuring the effective management of risk throughout the Group in support of the Group’s strategy.
The GCRO chairs the Committee, whose members are drawn from the GMT. The Committee oversees the implementat
ion
of the Standard Chartered Bank RMF, includ
ing the delegat
ion of any part of its authorit
ies to appropr
iate ind
iv
iduals
or properly constituted sub-committees. SCB ERC relies on jo
int meet
ings with the PLC Group Risk Committee and its
sub-committees to provide oversight of the PRTs across clients, businesses, products and functions. The Committee requests
and receives relevant informat
ion to fulﬁl
its governance mandates relating to the risks to which the Group is exposed,
and alerts Senior/Executive management when risk reports do not meet its requirements.
Solo & Standard Chartered Bank UK (Branch) Asset and Liab
il
ity Management Committee
Solo & SCB ALCO is appointed by the SC Bank CFO and chaired by the Group Treasurer. The Committee is responsible for
determin
ing the Group’s approach to balance sheet management and ensur
ing that, in executing the Group’s strategy, the
Group operates with
in the
internally approved RA and external requirements relating to capital, loss-absorbing capacity,
liqu
id
ity, leverage, Interest Rate Risk in the Banking Book (IRRBB), Banking Book Basis Risk and Structural Foreign Exchange
Risk as well as monitor
ing the structural
impact of decis
ions around susta
inable ﬁnance, Net Zero and Climate Risk.
The Committee is also responsible for ensuring that internal and external recovery planning requirements are met.
The SCB ERC and Solo & SCB ALCO receive reports that include informat
ion on r
isk measures, RA metrics and thresholds,
risk concentrations, forward-looking assessments, updates on specif
ic r
isk situat
ions and act
ions agreed by these committees
to reduce or manage risk.
Princ
ipal r
isks
We manage and control our PRTs through dist
inct RTFs, pol
ic
ies and RA.
> See page 48 for the Group’s current
PRT deﬁnit
ions
and
Risk Appetite Statements
.
In May 2024, to further align with our risk strategy and promote consistency and efﬁc
iency the Operat
ional and Technology
Risk and Information and Cyber Security Risk teams were unif
ied under the Operat
ional, Technology and Cyber Risk (OTCR)
function. The PRT disclosures and RA statements for ICS Risk and Operational and Technology Risk remain separate.
Following Tracey McDermott’s retirement as Group Head, Conduct, Financ
ial Cr
ime and Compliance at the end of 2024,
David Howes has been appointed as Group Head, Compliance, Financ
ial Cr
ime and Conduct Risk (CFCR) from 1 January
2025 and will assume Senior Manager responsib
il
it
ies for F
inanc
ial Cr
ime, includ
ing the Group Ent
ity Senior Manager
Function, Compliance Oversight Function (SMF16) and Money Laundering Reporting Ofﬁcer (MLRO) role
(SMF 17).
Credit Risk
Mit
igat
ion
We apply segment-specif
ic PLC Group pol
ic
ies for Corporate & Investment Bank
ing (CIB) and Wealth & Retail Banking (WRB),
which set the princ
iples that must be followed for the end-to-end cred
it process covering in
it
iat
ion, assessment,
documentation, approval, monitor
ing and governance.
We also apply the PLC Group standards for the elig
ib
il
ity, enforceab
il
ity, and effect
iveness of mit
igat
ion arrangements.
Potential losses are mit
igated us
ing a range of tools, such as collateral, netting agreements, credit insurance, credit
derivat
ives and guarantees.
Risk mit
igants are carefully assessed for the
ir market value, legal enforceabil
ity, correlat
ion, and counterparty risk of
the protection provider. Collateral is valued prior to drawdown and regularly thereafter as required, to reﬂect current
market condit
ions, the probab
il
ity of recovery and the per
iod of time to realise the collateral in the event of liqu
idat
ion.
We also seek to divers
ify
its collateral holdings across asset classes and markets.
Where guarantees, credit insurance, standby letters of credit or credit derivat
ives are used as Cred
it Risk mit
igat
ion, the
creditworth
iness of the protect
ion provider is assessed and monitored using the same credit process applied to the obligor.
Monitor
ing
The Group regularly monitors credit exposures, portfolio performance, external trends and emerging risks that may
impact risk management outcomes. Internal risk management reports that are presented to risk committees contain
informat
ion on key pol
it
ical and econom
ic trends across major portfolios and countries, portfolio delinquency and loan
impa
irment performance.
Risk Proﬁle continued
Standard Chartered Bank
51
Directors’ Report and Financ
ial Statements 2024
In CIB, clients and portfolios are subject to addit
ional rev
iew when they display signs of actual or potential weakness; for
example, where there is a decline in the client’s posit
ion w
ith
in the
ir industry, ﬁnanc
ial deter
iorat
ion, a breach of covenants,
or non-performance of an obligat
ion w
ith
in the st
ipulated period. Such accounts are subject to a dedicated process overseen
by the Credit Issues Committee in the relevant countries where client account strategies and credit grades are re-evaluated.
In addit
ion, remed
ial actions can be undertaken, such as placing accounts on early alert for exposure reduction, security
enhancement or exit
ing the account. Cred
it-impa
ired accounts are managed by the Group’s spec
ial
ist recovery un
it, Stressed
Asset Group (SAG), which is independent of the Client Coverage/Relationsh
ip Managers. The Stressed Asset R
isk (SAR) Group
is the second line risk unit.
On an annual basis, senior members from the CIB business and Risk partic
ipate
in a more extensive portfolio review (known
as the ‘industry portfolio review’) for certain industry groups. In addit
ion to a rev
iew of the portfolio informat
ion, th
is industry
portfolio review incorporates industry outlook, key elements of the business strategy, RA, credit proﬁle and emerging and
horizon risks. A summary of these industry portfolio reviews is also shared with the CIB Financ
ial R
isk Committee.
For WRB, exposures and collateral monitor
ing are performed at the counterparty and/or portfol
io level across different client
segments to ensure transactions and portfolio exposures remain with
in RA. Portfol
io delinquency trends are also monitored.
Accounts that are past due (or perceived as high risk but not yet past due) are subject to collections or recovery processes
managed by a special
ist
independent function. In some countries, aspects of collections and recovery activ
it
ies are
outsourced. For discret
ionary lend
ing portfolios, sim
ilar processes to those of CIB are followed.
Any material in-country developments that may impact sovereign ratings are monitored closely by Country Risk with
in the
ERM function. The Country Risk Early Warning system, a triage-based risk ident
iﬁcation system, categor
ises countries based
on a forward-looking view of possible downgrades and the potential incremental risk-weighted assets (RWA) impact.
In addit
ion, an
independent Credit Risk review team with
in the ERM funct
ion performs assessments of the Credit Risk proﬁles
at various portfolio levels. They focus on selected countries and segments through deep dives, comparative analysis, and
review and challenge of the basis of credit approvals. The review aims to ensure that the evolving Credit Risk proﬁles of CIB
and
WRB are well managed with
in RA and pol
ic
ies. Results of the rev
iews are reported to the SC Bank ERC and CRC.
Credit rating and measurement
All credit proposals are subject to a robust credit risk assessment. It includes a comprehensive evaluation of the client’s
credit quality, includ
ing w
ill
ingness, ab
il
ity, and capac
ity to repay. The primary lending considerat
ion for counterpart
ies is
based on their credit quality and operating cashﬂows, while for ind
iv
idual borrowers it is based on personal income or
wealth. The risk assessment gives due considerat
ion to the cl
ient’s liqu
id
ity and leverage posit
ion.
Where applicable, the assessment includes a detailed analysis of the Credit Risk mit
igat
ion arrangements to determine
the level of reliance on such arrangements as the secondary source of repayment in the event of a sign
iﬁcant deter
iorat
ion
in a client’s credit quality leading to default. Client income, net worth, and the liqu
id
ity of asset by class are considered for
overall risk assessment for wealth lending. Wealth lending credit lim
its are subject to the ava
ilab
il
ity of qualif
ied collateral.
A standard alphanumeric Credit Risk grade system is used for CIB, whereby credit grades 1 to 12 are assigned to performing
customers, and credit grades 13 and 14 are assigned to non-performing or defaulted customers.
WRB internal ratings-based portfolios use applicat
ion and behav
ioural credit scores that are calibrated to generate a
probabil
ity of default. The R
isk Decis
ion Framework uses a cred
it rating system to deﬁne the portfolio/new booking
segmentation, shape and decis
ion cr
iter
ia for the unsecured consumer bus
iness segment.
Advanced Internal Ratings-Based (AIRB) models cover the major
ity of our exposures and are used
in assessing risks at a
customer and portfolio level, setting strategy, and optim
is
ing our risk-return decis
ions. The PLC Group Model R
isk Committee
(MRC) approves material internal ratings-based risk measurement models. Prior to review and approval, all internal ratings-
based models are validated by an independent model validat
ion team. Rev
iews are also triggered if the performance of
a model deteriorates materially against predetermined thresholds, measured through the ongoing model performance
monitor
ing process.
We adopt the AIRB approach under the Basel regulatory framework to calculate Credit Risk capital requirements for the
majority of our exposures. The Group has also establ
ished a global programme to assess capital requirements necessary to
be implemented to meet the latest revised Basel III regulation (referred to as Basel 3.1 or Basel IV).
Credit Concentration Risk
Credit Concentration Risk for CIB is managed through concentration lim
its cover
ing large exposure lim
it to a s
ingle
counterparty or a group of connected counterparties (based on control and economic dependence criter
ia), or at portfol
io
level for multiple exposures that are closely correlated. Portfolio RA metrics are set, where appropriate, by industry, products,
tenor, collateralisat
ion level, top cl
ients, and exposure to holding companies.
For concentrations that are material at a Group level, breaches and potential breaches are monitored by the respective
governance committees and reported to the SC Bank ERC and CRC.
Risk Proﬁle continued
Standard Chartered Bank
52
Directors’ Report and Financ
ial Statements 2024
Credit impa
irment
For CIB, in line with the regulatory guidel
ines, Stage 3 expected cred
it loss (ECL) is considered when an obligor is more than 90
days past due on any amount payable to the Group, or the obligor has symptoms of unlikel
iness to pay
its credit obligat
ions
in full as they fall due. These credit-impa
ired accounts are managed by SAG.
In WRB, loans to ind
iv
iduals and small businesses are considered credit-impa
ired as soon as any payment of
interest or
princ
ipal
is 90 days overdue or they meet other object
ive ev
idence of impa
irment, such as bankruptcy, debt restructur
ing,
fraud, or death, with unlikely continuat
ion of contractual payments. F
inanc
ial assets are wr
itten off, in the amount that is
determined to be irrecoverable, when they meet condit
ions set such that emp
ir
ical ev
idence suggests the client is unlikely to
meet their contractual obligat
ions, or a loss of pr
inc
ipal
is reasonably expected.
Estimat
ing the amount and t
im
ing of future recover
ies involves sign
iﬁcant judgement and cons
iders the assessment of
matters such as future economic condit
ions and the value of collateral, for wh
ich there may not be a readily accessible
market. The total amount of the Group’s impa
irment prov
is
ion
is inherently uncertain, being sensit
ive to changes
in economic
and credit condit
ions across the markets
in which the Group operates.
> Further details on sensit
iv
ity analysis of ECL under IFRS 9 can be found in the ‘
Risk proﬁle
’ section on page 91.
Underwrit
ing
The underwrit
ing of secur
it
ies and loans
is in scope of the CIB RA. Addit
ional l
im
its approved by the GCRO are set on sectoral
concentration and maximum holding period. The Underwrit
ing Comm
ittee, under the authority of the GCRO, approves
ind
iv
idual proposals to underwrite new security issues and loans for our clients. In July 2024, oversight of Underwrit
ing
Committee was transferred from Traded Risk to CIB Credit Risk.
Traded Risk
Mit
igat
ion
Traded Risk lim
its are deﬁned at a level wh
ich aims to ensure that the Group remains with
in RA. The Traded R
isk Policy sets
the princ
iples that must be followed for the end-to-end traded r
isk management process includ
ing l
im
it sett
ing, risk capture
and measurement, lim
it mon
itor
ing and escalat
ion, risk mit
igat
ion and stress testing. Polic
ies are rev
iewed and approved by
the Global Head, Traded Risk Management period
ically to ensure the
ir ongoing effectiveness.
Market Risk measurement
The Group uses a VaR model to measure the risk of losses aris
ing from future potent
ial adverse movements in market
rates, prices, and volatil
it
ies. VaR is a quantitat
ive measure of market r
isk that applies recent histor
ical market cond
it
ions
to estimate the potential future loss in market value that will not be exceeded in a set time period at a set statist
ical
conﬁdence level.
VaR provides a consistent measure that can be applied across trading businesses and products over time and can be set
against actual daily trading proﬁt and loss outcomes.
For day-to-day risk management, VaR is calculated as at the close of business, generally at UK time for expected market
movements over one business day and to a conﬁdence level of 97.5 per cent. Intra-day risk levels may vary from those
reported at the end of the day.
The Group applies two VaR methodologies:
•
Histor
ical s
imulat
ion: th
is involves the revaluation of all exist
ing pos
it
ions to reﬂect the effect of h
istor
ically observed
changes in Market Risk factors on the valuation of the current portfolio. This approach is applied for general Market Risk
factors and the majority of spec
if
ic (cred
it spread) risk factors. The enhanced Volatil
ity Scal
ing VaR (VSV) model went live
in January 2025, where risk factors’ returns are scaled to reﬂect histor
ical volat
il
ity. The VSV model
is more responsive to
volatil
ity changes observed
in the market.
•
Monte Carlo simulat
ion: th
is methodology is sim
ilar to h
istor
ical s
imulat
ion but w
ith considerably more input risk factor
observations. These are generated by random sampling techniques, but the results retain the essential variab
il
ity and
correlations of histor
ically observed r
isk factor changes. This approach is applied for capturing the id
iosyncrat
ic credit
spread risk factors.
As an input to regulatory capital, trading book VaR is calculated for expected movements over 10 business days and to a
conﬁdence level of 99 per cent. Some types of market risk are not captured in the regulatory VaR measure and these risks
not in VaR are subject to capital add-ons.
An analysis of VaR results in 2024 is available in the Risk proﬁle section (page 96).
Counterparty Credit Risk
A Potential Future Exposure (PFE) model is used to measure the credit exposure aris
ing from the pos
it
ive mark-to-market
of traded products. The PFE model provides a quantitat
ive est
imate of future potential movements in market rates, prices,
and volatil
it
ies at a certain conﬁdence level over different time horizons based on the tenor of the transactions.
The Group applies two PFE methodologies: simulat
ion based, wh
ich is predominantly used, and an add-on based
PFE methodology.
Risk Proﬁle continued
Standard Chartered Bank
53
Directors’ Report and Financ
ial Statements 2024
Monitor
ing
Traded Risk Management monitors the overall portfolio risk and ensures that it is with
in spec
if
ied l
im
its and therefore RA.
Lim
its are typ
ically reviewed twice a year.
All material Traded Risks are monitored daily against approved lim
its. Traded R
isk lim
its apply at all t
imes unless separate
intra-day lim
its have been set.
Treasury Risk
We apply the PLC Group polic
ies for the management of mater
ial Treasury Risks and closely monitor our risk proﬁle through
RA metrics set at Solo and country level.
Capital Risk
In order to manage Capital Risk, strategic business, and capital plans (Corporate Plan) are drawn up covering a ﬁve-year
horizon and are approved by the Court annually. The plan ensures that adequate levels of capital, includ
ing loss-absorb
ing
capacity, and an efﬁc
ient m
ix of the different components of capital are mainta
ined to support our strategy and
business plans.
Treasury is responsible for the ongoing assessment of the demand for capital and the updating of the Solo’s capital plan.
Solo level RA metrics includ
ing cap
ital, leverage and min
imum requ
irement for own funds and elig
ible l
iab
il
ity (MREL)
and are assessed with
in the Corporate Plan to ensure that the strategy can be ach
ieved with
in r
isk tolerances.
Structural Foreign Exchange (FX) Risk
The Group’s structural FX posit
ion results from the Company’s non-US dollar
investment in the share capital and reserves of
subsid
iar
ies and branches. The FX translation gains or losses are recorded in the Company’s translation reserves with a direct
impact on the PLC Group’s and Solo’s Common Equity Tier 1 ratio.
Hedges are contracted across PLC Group and Solo to manage its structural FX posit
ion
in accordance with the RA, and as
a result net investment hedges to partially cover its exposure to certain non-US dollar currencies to mit
igate the FX
impact
of such posit
ions on
its capital ratios.
> Our
structural foreign exchange exposures
can be found in page 98.
Liqu
id
ity and Funding Risk
At Solo and country level we implement various RA metrics to monitor and manage Liqu
id
ity and Funding risk. This ensures
that the Group mainta
ins an adequate and well-d
ivers
iﬁed l
iqu
id
ity buffer, as well as a stable funding base, to meet its
liqu
id
ity and funding regulatory requirements.
> Further detail on
Liqu
id
ity and Funding Risk
can be found in page 99.
Interest Rate Risk in the Banking Book
At Solo level, we implement the RA for Economic Value of Equity and Annual Earnings at Risk and monitor these against lim
its
and management action triggers. This risk arises from differences in the repric
ing proﬁle,
interest rate basis, and optional
ity of
banking book assets, liab
il
it
ies and off-balance sheet
items. IRRBB represents an economic and commercial risk to the Group
and its capital adequacy.
> Further detail on
IRRBB
can be found in page 106.
Pension Risk
Pension Risk is the potential for loss due to having to meet an actuarially assessed shortfall in the Group’s pension plans.
Pension Risk arises from the Group’s contractual or other liab
il
it
ies w
ith respect to its occupational pension plans or other
long-term beneﬁt obligat
ion. For a funded plan,
it represents the risk that addit
ional contr
ibut
ions w
ill need to be made
because of a future funding shortfall. For unfunded obligat
ions,
it represents the risk that the cost of meeting future beneﬁt
payments is greater than currently antic
ipated.
Recovery and resolution planning
In line with PRA requirements, the Group mainta
ins a Recovery Plan and a Solo Recovery Plan (SCB UK and
its branches).
The Solo Recovery Plan includes a set of recovery ind
icators, an escalat
ion framework and a set of management actions
capable of being implemented during a stress. The Solo Recovery Plan is also subject to period
ic ﬁre-dr
ill testing in line with
the Group. Other major entit
ies of SC Bank also ma
inta
in the
ir own recovery plans in line with the Group Standards and local
requirements.
As the UK resolution authority, the BoE set a single point of entry bail-in at the ultimate holding company level (Standard
Chartered PLC) as the preferred resolution strategy for the PLC Group. In support of this strategy, the PLC Group has a set of
capabil
it
ies, arrangements, and resources in place to mainta
in, test and
improve resolution capabil
it
ies, and continue to meet
the required resolvabil
ity outcomes on an ongo
ing basis.
Following the BoE’s ﬁrst resolvabil
ity assessment and publ
ic disclosure for major UK ﬁrms in 2022, the PLC Group submitted
its Resolvabil
ity Self-Assessment Report to the BoE and PRA and subsequently publ
ished its resolvabil
ity publ
ic disclosure in
August 2024 as part of the second Resolvabil
ity Assessment Framework cycle.
Risk Proﬁle continued
Standard Chartered Bank
54
Directors’ Report and Financ
ial Statements 2024
Monitor
ing
On a day-to-day basis, Treasury Risk is managed by Treasury, Finance and country CEOs. The Group regularly reports and
monitors Treasury Risk inherent in its business activ
it
ies and those that arise from internal and external events.
Internal risk management reports covering the balance sheet and the capital and liqu
id
ity posit
ion are presented to the
Solo & SCB ALCO. The reports contain key informat
ion on balance sheet trends, exposures aga
inst RA and supporting risk
measures which enable members to make informed decis
ions around the overall management of the balance sheet. In
addit
ion, an
independent Treasury CRO with
in ERM rev
iews the prudency and effectiveness of Treasury Risk management.
Pension Risk is managed by the Head of Pensions and Reward Analytics, and monitored by the Global Head, ERM on
a period
ic bas
is.
Operational and Technology Risk
Mit
igat
ion
The Company addendum to the Operational and Technology RTF sets out the Group’s overall approach to the management
of Operational and Technology Risk in line with the Group’s Operational and Technology RA. This is supported by the Risk and
Control Self-Assessment (RCSA), which provides a systematic approach for ident
iﬁcation and assessment of operat
ional risks,
includ
ing des
ign and operation of mit
igat
ing controls (applicable to all risks as per the Non-Financ
ial R
isk Taxonomy).
The RCSA is used to determine the design and operating effectiveness of each process, and requires
•
the recording of end-to-end processes which deliver our key client journey and business outcomes
•
the ident
iﬁcation of r
isks to support the achievement of client and business outcomes
•
the assessment of inherent risk on the impact to client and business outcomes, and likel
ihood of occurrence
•
the design and monitor
ing of key controls to effect
ively and efﬁc
iently m
it
igate pr
ior
it
ised risks with
in acceptable
levels and
•
the assessment of residual risk and timely treatment of elevated risks.
Elevated Residual Risks require treatment plans to address the underlying causes and reduce the risks to with
in the RA.
Monitor
ing
To deliver services to clients and to partic
ipate
in the ﬁnanc
ial serv
ices sector, the Group runs processes which are exposed
to Operational and Technology risks. The Group prior
it
ises and manages risks which are sign
iﬁcant to our cl
ients and to the
ﬁnancial serv
ices sectors. The control ind
icators are regularly mon
itored to determine the Group’s exposure to residual risk.
The residual risk assessments and reporting of events form the Group’s Operational and Technology Risk proﬁle.
The completeness of the Operational and Technology Risk proﬁle ensures appropriate prior
it
isat
ion and t
imel
iness
of risk decis
ions,
includ
ing r
isk acceptances with treatment plans for risks that exceed acceptable thresholds.
The CRC is informed on adherence to Operational and Technology RA through metrics reported for selected risks.
These metrics are monitored, and escalation thresholds are devised based on the material
ity and s
ign
iﬁcance of the r
isk.
These Operational and Technology RA metrics are consolidated on a regular basis and reported to the SCB ERC and CRC,
provid
ing sen
ior management with the relevant informat
ion to
inform their risk decis
ions.
Information and Cyber Security Risk
Mit
igat
ion
ICS Risk is managed through the ICS RTF, compris
ing a r
isk assessment methodology and supporting policy, standards, and
methodologies. The ICS Policy and standards are aligned to industry best practice models includ
ing the Nat
ional Institute of
Standards and Technology Cyber Security Framework and ISO 27001. We undertake an annual ICS Effectiveness Review to
evaluate ICS Risk management practices in alignment with the RMF.
Monitor
ing
The Group Chief Information Security Ofﬁcer (CISO) function monitors the evolving threat landscape covering cyber threats,
attack vectors and threat actors that could target the Group. This includes performing a threat-led risk assessment to ident
ify
key threats, in-scope applicat
ions and key controls requ
ired to ensure the Group remains with
in RA.
The ICS Risk proﬁles of all businesses, functions and countries are consolidated to present a holist
ic Group-level ICS R
isk proﬁle
for ongoing monitor
ing. Mandatory ICS learn
ing, phish
ing exerc
ises and role-specif
ic tra
in
ing support colleagues to mon
itor
and manage this risk.
During these reviews, the status of each risk is assessed against the Group’s controls to ident
ify any changes to
impact and
likel
ihood, wh
ich affects the overall risk rating.
The Group stress tests its cyber posture through extensive control testing and by executing offensive security testing
exercises, includ
ing vulnerab
il
ity test
ing, code reviews, penetration tests and Red Team attack simulat
ion test
ing. This testing
approach constantly stress tests the Group’s defence and approach to cyber security. These show a wider picture of the
Group’s risk proﬁle, leading to better vis
ib
il
ity on potent
ial ‘in ﬂight’ risks.
Risk Proﬁle continued
Standard Chartered Bank
55
Directors’ Report and Financ
ial Statements 2024
The CISO and OTCR functions monitor the ICS Risk proﬁle and ensure that breaches of RA are escalated to the appropriate
governance committee or authority levels for remediat
ion and track
ing.
Financ
ial Cr
ime Risk
Roles and responsib
il
it
ies
The Group Head, CFCR is the Group’s Compliance and Money-Laundering Reporting Ofﬁcer and performs the Financ
ial
Conduct Authority (FCA) controlled function and senior management function in accordance with the requirements set
out by the FCA, includ
ing those set out
in their handbook on systems and controls.
Mit
igat
ion
The CFCR function is responsible for the establishment and maintenance of polic
ies, standards, and overs
ight of ﬁrst line of
defence controls to ensure continued compliance with ﬁnanc
ial cr
ime laws and regulations, and the mit
igat
ion of Financ
ial
Crime Risk. In this, the requirements of the PLC Group’s Operational and Technology RTF are followed to ensure a consistent
approach to the management of processes and controls.
Financ
ial Cr
ime Risk management is built on a risk-based approach, meaning the risk management plans, processes,
activ
it
ies, and resource allocations are determined according to the level of risk.
Risk mit
igat
ion takes place through the process of ident
iﬁcation of new and amended regulat
ions and the implementat
ion
of necessary process and control changes to address these.
Monitor
ing
The Group monitors enterprise-wide ﬁnanc
ial cr
ime risks through the Financ
ial Cr
ime Risk Assessment. This is undertaken
annually to assess the inherent ﬁnanc
ial cr
ime risk exposures and the associated processes and controls by which these
exposures are mit
igated.
Financ
ial Cr
ime Risk controls are governed in line with the PLC Group’s Operational and Technology RTF. The Group has a
monitor
ing and report
ing process in place for Financ
ial Cr
ime Risk, which includes escalation and reporting to the CFCR
relevant risk committees.
Whilst not a formal governance committee, the PLC Group’s CFCR Oversight Group provides oversight of CFCR risks
includ
ing the effect
ive implementat
ion of the PLC Group’s F
inanc
ial Cr
ime RTF. It also provides oversight, challenge and
direct
ion to CFCR pol
icy owners on material changes and posit
ions taken
in CFCR-owned polic
ies,
includ
ing
issues relating to
regulatory interpretat
ion and Group’s CFCR RA. The Regulatory Change Overs
ight Forum provides vis
ib
il
ity and overs
ight of
material and/or complex large-scale regulatory change emanating from ﬁnanc
ial serv
ices regulators impact
ing non-
ﬁnancial r
isks.
> Further details on
how we manage Financ
ial Cr
ime
can be found on page 96 of SC PLC Group 2024 Annual Report.
Compliance Risk
Roles and responsib
il
it
ies
All activ
it
ies that the Group engages in must comply with the relevant country/local specif
ic and extraterr
itor
ial regulat
ions.
Compliance Risk includes the risks associated with a failure to comply with all regulations that are applicable to the Group
regardless of the issu
ing regulatory author
ity. Where Compliance Risk arises, or could arise, from failure to manage another
PRT, the oversight and management processes for that specif
ic PRT must be followed, to ensure that effect
ive oversight and
challenge of the ﬁrst line of defence can be provided by the appropriate second line of defence function.
Areas of regulation can be broadly div
ided
into two dist
inct categor
ies; those issued by ﬁnanc
ial serv
ices regulatory
authorit
ies and those
issued by non-ﬁnanc
ial serv
ices regulators. The Group is exposed to both categories of regulation,
and roles and responsib
il
it
ies d
iffer depending on the category. For regulations issued by ﬁnanc
ial serv
ices regulatory
authorit
ies and other regulators that may
issue regulations pertain
ing to Compl
iance Risk, CFCR ident
iﬁes new and
amended regulations as and when issued and communicates the relevant regulatory obligat
ions to the country RFO
delegate. The areas where CFCR does not act in a second line of defence capacity are specif
ied
in the respective RTF
with appropriate ownership.
Each of the assigned second line of defence functions have responsib
il
it
ies,
includ
ing mon
itor
ing relevant regulatory
developments from non-ﬁnancial serv
ices regulators at both Group and country levels, policy development, implementat
ion,
and validat
ion as well as overs
ight and challenge of ﬁrst line of defence processes and controls.
Mit
igat
ion
We apply the PLC Group’s polic
ies for management of Compl
iance Risk. The CFCR function is responsible for the
establishment and maintenance of polic
ies, standards, and overs
ight of the ﬁrst line of defence controls to ensure
compliance with laws and regulations, and the mit
igat
ion of Compliance Risk. In this, the requirements of the PLC
Group’s Operational and Technology RTF are followed to ensure a consistent approach to the management of processes
and controls.
Risk Proﬁle continued
Standard Chartered Bank
56
Directors’ Report and Financ
ial Statements 2024
Monitor
ing
The monitor
ing of controls des
igned to mit
igate the r
isk of regulatory non-compliance in processes is governed in line with
the PLC Group’s Operational and Technology RTF. Compliance Risk reporting includes escalation and reporting to the CFCR
and relevant risk committees.
Whilst not a formal governance committee, the PLC Group’s CFCR Oversight Group provides oversight of CFCR risks includ
ing
the effective implementat
ion of the PLC Group’s Compl
iance RTF, and oversight, challenge and direct
ion to CFCR pol
icy
owners on material changes and posit
ions taken
in CFCR-owned polic
ies,
includ
ing
issues relating to regulatory interpretat
ion
and the Group’s CFCR RA. The Regulatory Change Oversight Forum provides vis
ib
il
ity and overs
ight of material and/or
complex large-scale regulatory change emanating from ﬁnanc
ial serv
ices regulators impact
ing non-ﬁnancial r
isks.
Environmental, Social and Governance (ESGR) Risk
Mit
igat
ion
The ESGR RTF provides the overall risk management approach for Environmental, Social and Governance (ESG) and
Reputational risks.
The ESG Risk policy outlines the Group’s commitment to integrat
ing ESG cons
iderat
ions
into its business, operations,
and decis
ion-mak
ing process. The policy sets out the requirements for ident
ify
ing, assessing, and managing ESG risks
includ
ing Cl
imate Risk.
The Reputational Risk policy sets out the princ
ipal sources of reputat
ional risk driven by negative shifts in stakeholder
perceptions, as well as the responsib
il
it
ies for manag
ing Reputational Risk aris
ing out of cl
ient onboarding and due dil
igence,
from transactions, product design and product features, or strategic coverages such as exposure to sensit
ive
industr
ies,
markets, or investments. Whenever potential for stakeholder concerns is ident
iﬁed,
issues are subject to review and decis
ion
by both the ﬁrst and second lines of defence. The Reputational Risk policy also sets out the key considerat
ions for m
it
igat
ing
greenwashing risk that can arise during product and/or deal lifecycle, sustainab
il
ity reporting and disclosures, and external
campaigns related to sustainab
il
ity themes.
Monitor
ing
Exposure to reputational risks aris
ing from transact
ions, clients, products and strategic coverage is monitored through
established triggers to prompt the appropriate risk-based considerat
ions and assessment by the ﬁrst l
ine of defence
and escalations to the second line of defence. Risk acceptance decis
ions and themat
ic trends are also reviewed on
a period
ic bas
is.
Exposure to ESG Risks is monitored through triggers embedded with
in the ﬁrst l
ine of defence processes. The environmental
and social risks are considered for clients and transactions via Environmental and Social Risk Assessments and/or Climate
Risk Assessments (CRAs). Vendors that are presenting as high risk are assessed for modern slavery risk. Based on responses
provided by the supplier at on-boarding, those that meet the high-risk category-country combinat
ions are subjected to
further risk assessment.
Exposure to Climate Risk is monitored in conjunct
ion w
ith other PRTs. We have embedded qualitat
ive and quant
itat
ive
climate considerat
ions
into the Group’s Credit Underwrit
ing Pr
inc
iples for O
il and Gas, Min
ing, Sh
ipp
ing, Commerc
ial Real
Estate and Project Finance portfolio. We have expanded coverage of Climate and Credit Risk considerat
ions to phys
ical
collateral, as they serve as key risk mit
igants espec
ially in default events. We assess physical risk concentrations for our
WRB portfolio on a quarterly basis and assess the physical risk vulnerabil
it
ies of our sites period
ically and when new s
ites
are onboarded.
Our Net Zero Climate Risk Working Forum meets quarterly to discuss account plans for high Climate Risk and net zero
divergent clients. Stress testing and scenario analysis are used to assess the impact of ESGR related risks. The impact on
capital requirements has been included in the PLC Group Internal Capital Adequacy Assessment Process. Management
informat
ion
is reviewed at a quarterly frequency and any breaches in RA are reported to the SC Bank ERC and CRC.
Risk Proﬁle continued
Standard Chartered Bank
57
Directors’ Report and Financ
ial Statements 2024
Model Risk
Mit
igat
ion
The Model Risk Policy and Standards deﬁne requirements for model development, validat
ion,
implementat
ion and use,
includ
ing regular model performance mon
itor
ing and, where requ
ired, model risk mit
igants.
Model deﬁcienc
ies ident
iﬁed through the development or val
idat
ion process, or model performance
issues ident
iﬁed through
ongoing monitor
ing, are m
it
igated through respect
ive model risk mit
igants. M
it
igants
include model overlays as either
post-model adjustments (PMAs) or management adjustments, model restrict
ions and potent
ially a model recalibrat
ion
or redevelopment, all of which undergo independent review, challenge, and approval. PMAs are used to address observed
deﬁcienc
ies caused from with
in the model, by adjusting the model output e
ither directly or ind
irectly (e.g. adjusting
parameters). Where a PMA is applied as a mit
igant for a model used
in Pillar 1 or Pillar 2 calculations, or models with material
impact on ﬁnanc
ial account
ing disclosures (e.g. IFRS 9), the independent review must be performed by Group Model
Validat
ion (GMV) w
ith sign-off from the Model Approver prior to implementat
ion.
As with all PRTs, operational controls are used to govern all Model Risk-related processes, with regular risk assessments
performed to assess appropriateness and effectiveness of those controls, in line with the Operational and Technology RTF,
with remediat
ion plans
implemented where necessary. Group Model Risk Policy and Standards also deﬁne requirements for
determin
ist
ic quantitat
ive methods (DQMs) that are used as part of an end-to-end modelled process. DQMs are s
im
ilar
in
nature to a Model, however the processing component is either purely determin
ist
ic or has an element of expert judgement.
Unlike a Model, there is no use of statist
ical, econom
ic ﬁnanc
ial or mathemat
ical theories.
The regulatory framework around Model Risk is continuously evolving, the PRA’s Supervisory Statement 1/23 (SS1/23) is
an example. The Group proactively monitors regulatory changes to take the required actions timely for compliance.
Regarding SS1/23, the Group is currently deliver
ing to a roadmap to compl
iance, which commenced in 2024 and will
continue over the next two years.
Monitor
ing
The Group monitors Model Risk via a set of RA metrics. Adherence to Model RA and any threshold breaches are reported
to the CRC, SCB ERC and PLC Model Risk Committee (MRC). These metrics and thresholds are reviewed twice per year to
ensure that threshold calibrat
ion rema
ins appropriate, and the themes adequately cover the current risks.
Models undergo regular performance monitor
ing based on the
ir level of perceived Model Risk, with monitor
ing results
presented, and breaches escalated to the Model Sponsor, Model Owner, GMV and respective MRC
or Indiv
idual Delegated Model Approvers.
Model Risk management produces Model Risk reports covering the model landscape, which include performance
metrics, ident
iﬁed model
issues and remediat
ion plans. These are presented for d
iscuss
ion at the Model R
isk governance
committees on a regular basis.
Risk Proﬁle continued
Standard Chartered Bank
58
Directors’ Report and Financ
ial Statements 2024
Credit Risk (audited)
Basis of preparation
Unless otherwise stated the balance sheet and income statement informat
ion presented w
ith
in th
is section is based on the
Group’s management view. This is princ
ipally the locat
ion from which a client relationsh
ip
is managed, which may differ from
where it is ﬁnanc
ially booked and may be shared between bus
inesses and/or regions. This view reﬂects how the client
segments and regions are managed internally.
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 includ
ing other
sim
ilar secured lend
ing and borrowing.
Credit Risk overview
Credit Risk is the potential for loss due to the failure of a counterparty to meet its obligat
ions to pay the Group. Cred
it
exposures arise from both the banking and trading books.
Impairment model
IFRS 9 requires an impa
irment model that requ
ires the recognit
ion of expected cred
it losses (ECL) on all ﬁnanc
ial debt
instruments held at amortised cost, fair value through other comprehensive income (FVOCI), undrawn loan commitments
and ﬁnancial guarantees.
Staging of ﬁnanc
ial
instruments
Financ
ial
instruments that are not already credit-impa
ired are or
ig
inated
into stage 1 and a 12-month expected credit loss
provis
ion
is recognised.
Instruments will remain in stage 1 until they are repaid, unless they experience sign
iﬁcant cred
it deteriorat
ion (stage 2)
or they become credit-impa
ired (stage 3).
Instruments will transfer to stage 2 and a lifet
ime expected cred
it loss provis
ion recogn
ised when there has been a sign
iﬁcant
change in the credit risk compared to what was expected at orig
inat
ion.
The framework used to determine a sign
iﬁcant
increase in credit risk is set out below.

Stage 1 | Stage 2 | Stage 3
• 12-month ECL | • Lifet ime expected cred it loss | • Credit-impa ired
• Performing | • Performing but has exhib ited s ign iﬁcant | • Non-performing
| increase in credit risk (SICR) |

IFRS 9 expected credit loss princ
iples and approaches
The main methodology princ
iples and approach adopted by the Group are set out
in the following table.

Title | Supplementary informat ion | Page
Approach for determin ing | IFRS 9 ECL methodology | 88
expected credit losses | Applicat ion of l ifet ime ECL |
Key assumptions | Incorporation of forward-looking informat ion | 89
and judgements in | Forecast of key macroeconomic variables underlying the expected credit loss calculation and |
determin ing ECL | the impact of non-linear ity |
| Judgemental adjustments and management overlays and sensit iv ity of ECL calculation to |
| macroeconomic variables |
Sign iﬁcant increase in | Sign iﬁcant increase in credit risk thresholds | 93
Credit risk (SICR) | Specif ic qual itat ive and quant itat ive cr iter ia per segment: |
| Corporate and Investment Banking clients |
| Wealth and Retail Banking clients |
| Private Banking clients |
| Debt securit ies |
Assessment of credit- | WRB clients | 94
impa ired ﬁnancial assets | CIB and Private Banking clients |
Transfers between stages | Movement in loan exposures and credit impa irment | 71
Modif ied ﬁnancial assets | Forbearance and other modif ied loans | 76
Governance of Post Model | Models and Model Performance Post Model Adjustments (PMAs) | 95
Adjustments (PMAs) and | IFRS 9 Impairment Committee (IIC) |
applicat ion of expert cred it |  |
judgement in respect of |  |
expected credit losses |  |

Risk Proﬁle continued
Standard Chartered Bank
59
Directors’ Report and Financ
ial Statements 2024
Summary of Credit Risk Performance
Maximum exposure
The Group’s on-balance sheet maximum exposure to Credit Risk increased by $26.7 bill
ion to $543.2 b
ill
ion (31 December 2023:
$516.6 bill
ion). Cash and balances at Central bank decreased by $7.5 b
ill
ion to $56.7 b
ill
ion (31 December 2023: $64.2 b
ill
ion)
due to reduced placements. Fair Value through proﬁt and loss increased by $6.6 bill
ion to $102.3 b
ill
ion (31 December 2023:
$95.7 bill
ion) largely due to an
increase in debt securit
ies. Loans and advances to customers
increased by $2.1 bill
ion to
$158.2 bill
ion (31 December 2023: $156.1 b
ill
ion). Debt secur
it
ies decreased by $5.9 b
ill
ion to $96.2 b
ill
ion (31 December 2023:
$102 bill
ion) due to matur
ing exposures. Off-balance sheet instruments increased by $26.7 bill
ion to $205.3 b
ill
ion
(31 December 2023: $178.6 bill
ion), due to
increases in ﬁnanc
ial guarantees, other equ
ivalents and undrawn commitments,
which was driven by new business.
> Further details can be found in the ‘
Maximum exposure to Credit Risk
’ section in pages 60 to 61.
Loans and Advances
93 per cent (31 December 2023: 92 per cent) of the Group’s gross loans and advances to customers remain in stage 1 at
$149.8 bill
ion (31 December 2023: $146.7 b
ill
ion), reﬂect
ing our continued focus on high-quality orig
inat
ion.
Stage 1 loans and advances to customers increased by $3 bill
ion to $149.8 b
ill
ion (31 December 2023: $146.7 b
ill
ion) ma
inly
due to increases in CIB exposures in Energy and Financ
ing and Insurance sectors. Th
is was offset by lower balances in
Central and other items due to a reduction in exposures to the Government sector, across a number of our markets.
For WRB, stage 1 balances decreased by $0.6 bill
ion to $45.7 b
ill
ion (31 December 2023: $46.4 b
ill
ion) ma
inly due to a reduction
in mortgages in Singapore as sales slowed due to the higher interest rate environment.
Stage 2 gross loans and advances to customers decreased by $0.4 bill
ion to $7.3 b
ill
ion (31 December 2023: $7.7 b
ill
ion). For CIB,
stage 2 balances increased by $0.6 bill
ion to $6.3 b
ill
ion (31 December 2023: $5.7 b
ill
ion) dr
iven by Transport and Commercial
real estate (CRE) sectors. For WRB, stage 2 balances remain unchanged at $1 bill
ion (31 December 2023: $1 b
ill
ion), due to
reduction in the Singapore mortgage portfolio of $0.1 bill
ion, offset by an
increase in secured wealth balances. Higher risk
exposure decreased by $0.9 bill
ion to $35 m
ill
ion (31 December 2023: $1 b
ill
ion) for Central and other
items due to the maturity
of short-term loan exposures that were replaced with debt securit
ies
in Pakistan.
Stage 3 loans decreased by $1.1 bill
ion to $4.1 b
ill
ion (31 December 2023: $5.2 b
ill
ion) due to repayments and wr
ite-offs in
CIB. For WRB, stage 3 balances remained stable at $1.1 bill
ion (31 December 2023: $1.1 b
ill
ion). For Central and other
items,
stage 3 balances decreased by $0.1 bill
ion to $0.1 b
ill
ion (31 December 2023: $0.2 b
ill
ion).
> Further details can be found in the ‘
Analysis of ﬁnanc
ial
instrument by stage’
section in pages 62 to 65;
‘
Credit quality by client segment
’ section in pages 66 to 70.
Credit impa
irment charge
The Group’s credit impa
irment was a net charge of $15 m
ill
ion (31 December 2023: release of $58 m
ill
ion).
For CIB, credit impa
irment release
increased by $99 mill
ion to a net release of $262 m
ill
ion (31 December 2023: release of
$163 mill
ion) largely due to a number of stage 3 releases and one s
ign
iﬁcant repayment. Th
is was offset by new overlays of
$42 mill
ion
in 2024.
For WRB, credit impa
irment charges
increased by $157 mill
ion to $286 m
ill
ion (31 December 2023: $129 m
ill
ion). Th
is charge off
increase was driven by higher interest rate environment impact
ing repayments on cred
it cards and personal loans, as well as
maturity and portfolio growth of dig
ital partnersh
ips in Indonesia.
For Ventures, credit impa
irment charges
increased by $12 mill
ion to $25 m
ill
ion (31 December 2023: $13 m
ill
ion) due to portfol
io
growth and maturity of Trust Bank Plc.
For Central and other items, credit impa
irment release was lower at $34 m
ill
ion (31 December 2023: release of $37 m
ill
ion).
The release in 2024 was mainly driven by two sovereign upgrades.
> Further details can be found in the ‘
Credit impa
irment charge
’ section in page 76.
Risk Proﬁle continued
Standard Chartered Bank
60
Directors’ Report and Financ
ial Statements 2024
Maximum exposure to Credit Risk (audited)
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 31 December 2024, before and after taking into account any collateral held or other Credit
Risk mit
igat
ion.
> Further details can be found in the ‘
Summary of Credit Risk Performance
’ section in page 59.
Group

| 2024 | 2023
|  | Credit risk management |  |  | Credit risk management |
|  |  | Master |  |  |  | Master |
| Maximum |  | netting | Net | Maximum |  | netting | Net
| exposure | Collateral 8 | agreements | exposure | exposure | Collateral 8 | agreements | exposure
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
On-balance sheet |  |  |  |  |  |  |  |
Cash and balances at central banks | 56,665 | – | – | 56,665 | 64,198 |  | - | 64,198
Loans and advances to banks 1 | 22,941 | 2,889 | – | 20,052 | 22,803 | 1,653 | - | 21,150
of which – reverse repurchase |  |  |  |  |  |  |  |
agreements and other sim ilar |  |  |  |  |  |  |  |
secured lending 7 | 2,889 | 2,889 | – | – | 1,653 | 1,653 | - | –
Loans and advances to customers 1 | 158,242 | 54,780 | – | 103,462 | 156,143 | 51,985 | - | 104,158
of which – reverse repurchase |  |  |  |  |  |  |  |
agreements and other sim ilar |  |  |  |  |  |  |  |
secured lending 7 | 9,121 | 9,121 | – | – | 13,827 | 13,827 | - | –
Investment securit ies – Debt secur it ies |  |  |  |  |  |  |  |
and other elig ible b ills 2 | 96,179 | – | – | 96,179 | 102,040 | – | – | 102,040
Fair value through proﬁt or loss 3,7 | 102,258 | 65,603 | – | 36,655 | 95,658 | 68,149 | – | 27,509
Loans and advances to banks | 2,033 | – | - | 2,033 | 2,265 | - | - | 2,265
Loans and advances to customers | 3,989 | – | - | 3,989 | 3,188 | - | - | 3,188
Reverse repurchase agreements |  |  |  |  |  |  |  |
and other sim ilar lend ing 7 | 65,603 | 65,603 | - | – | 68,149 | 68,149 | - | –
Investment securit ies – Debt |  |  |  |  |  |  |  |
securit ies and other el ig ible b ills 2 | 30,633 | - | - | 30,633 | 22,056 | - | - | 22,056
Derivat ive ﬁnancial instruments 4,7 | 82,717 | 12,984 | 65,027 | 4,706 | 52,554 | 7,960 | 43,684 | 910
Accrued income | 1,846 | - | - | 1,846 | 1,768 | - | - | 1,768
Assets held for sale⁹ | 866 | - | - | 866 | 693 | - | - | 693
Other assets 5 | 21,535 | - | - | 21,535 | 20,714 | - | - | 20,714
Total balance sheet | 543,249 | 136,256 | 65,027 | 341,966 | 516,571 | 129,747 | 43,684 | 343,140
Off-balance sheet 6 |  |  |  |  |  |  |  |
Undrawn Commitments | 123,931 | 1,861 | - | 122,070 | 117,899 | 2,296 | - | 115,603
Financ ial Guarantees and |  |  |  |  |  |  |  |
other equivalents | 81,343 | 1,570 | - | 79,773 | 60,707 | 2,139 | - | 58,568
Total off-balance sheet | 205,274 | 3,431 | – | 201,843 | 178,606 | 4,435 | – | 174,171
Total | 748,523 | 139,687 | 65,027 | 543,809 | 695,177 | 134,182 | 43,684 | 517,311

1
Amounts are net of ECL provis
ions. An analys
is of credit quality is set out in the credit quality analysis section- page 66. Further details of collateral held by client
segment and stage are set out in the collateral analysis section on page 77. The Group also has credit mit
igat
ion through Credit Linked Notes as set out on page 81
2
Excludes equity and other investments of $263 mill
ion (31 December 2023: $ 434m
ill
ion). Further deta
ils are set out in Note 12 Financ
ial
instruments
3
Excludes equity and other investments of $1,366 mill
ion (31 December 2023: $1,442 m
ill
ion). Further deta
ils are set out in Note 12 Financ
ial
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 posit
ive and negat
ive mark-to-market values of applicable derivat
ive transact
ions
5
Other assets include cash collateral, and acceptances, in addit
ion to unsettled trades and other ﬁnancial assets
6
Excludes ECL provis
ions of $208 m
ill
ion (31 December 2023: $180 m
ill
ion) wh
ich are reported under Provis
ions for l
iab
il
it
ies and charges
7
Collateral capped at maximum exposure (over-collateralised)
8
Adjusted for over-collateralisat
ion, wh
ich has been determined with reference to the drawn and undrawn component as this best reﬂects the effect on the amount
aris
ing from expected cred
it losses. Loans and advances to customers collateral now re-presented between on and off -balance sheet as it also includes guarantees
9
The amount is after ECL provis
ions. Further deta
ils are set out in Note 20 Assets held for sale and associated liab
il
it
ies
Risk Proﬁle continued
Standard Chartered Bank
61
Directors’ Report and Financ
ial Statements 2024
Company

| 2024 | 2023
|  | Credit risk management |  |  | Credit risk management |
|  |  | Master |  |  |  | Master |
| Maximum |  | netting | Net | Maximum |  | netting | Net
| exposure | Collateral 8 | agreements | exposure | exposure | Collateral 8 | agreements | exposure
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
On-balance sheet |  |  |  |  |  |  |  |
Cash and balances at central banks | 45,233 | – | – | 45,233 | 52,758 | – | – | 52,758
Loans and advances to banks 1 | 11,755 | 1,423 | – | 10,332 | 10,135 | 554 | – | 9,581
of which – reverse repurchase |  |  |  |  |  |  |  |
agreements and other sim ilar |  |  |  |  |  |  |  |
secured lending 7 | 1,423 | 1,423 | – | – | 554 | 554 | – | –
Loans and advances to customers 1 | 77,597 | 24,378 | – | 53,219 | 75,883 | 23,157 | – | 52,726
of which – reverse repurchase |  |  |  |  |  |  |  |
agreements and other sim ilar |  |  |  |  |  |  |  |
secured lending 7 | 9,041 | 9,041 | – | – | 12,212 | 12,212 | – | –
Investment securit ies – Debt secur it ies |  |  |  |  |  |  |  |
and other elig ible b ills 2 | 81,855 |  | – | 81,855 | 92,362 | – | – | 92,362
Fair value through proﬁt or loss 3,7 | 87,122 | 62,141 | – | 24,981 | 85,097 | 64,804 | – | 20,293
Loans and advances to banks | 1,880 | – | – | 1,880 | 2,244 | – | – | 2,244
Loans and advances to customers | 3,276 | – | – | 3,276 | 2,622 | – | – | 2,622
Reverse repurchase agreements |  |  |  |  |  |  |  |
and other sim ilar lend ing 7 | 62,141 | 62,141 | – | – | 64,804 | 64,804 | – | –
Investment securit ies – Debt |  |  |  |  |  |  |  |
securit ies and other el ig ible b ills 2 | 19,825 | – | – | 19,825 | 15,427 | – | – | 15,427
Derivat ive ﬁnancial instruments 4,7 | 82,844 | 11,788 | 67,030 | 4,026 | 53,221 | 7,289 | 45,556 | 376
Accrued income | 1,256 | – | – | 1,256 | 1,151 | – | – | 1,151
Assets held for sale⁹ | 474 | – | – | 474 | 52 | – | – | 52
Other assets 5 | 17,587 | – | – | 17,587 | 16,990 | – | – | 16,990
Total balance sheet | 405,723 | 99,730 | 67,030 | 238,963 | 387,649 | 95,804 | 45,556 | 246,289
Off-balance sheet 6 |  |  |  |  |  |  |  |
Undrawn Commitments | 69,293 | 1,033 | – | 68,260 | 69,007 | 1,387 | – | 67,620
Financ ial Guarantees and |  |  |  |  |  |  |  |
other equivalents | 69,038 | 1,215 | – | 67,823 | 49,586 | 1,836 | – | 47,750
Total off-balance sheet | 138,331 | 2,248 | – | 136,083 | 118,593 | 3,223 | – | 115,370
Total 10 | 544,054 | 101,978 | 67,030 | 375,046 | 506,242 | 99,027 | 45,556 | 361,659

1
Amounts are net of ECL provis
ions. An analys
is of credit quality is set out in the credit quality analysis section page 66. Further details of collateral held by client segment
and stage are set out in the collateral analysis section page 77. The Group also has credit mit
igat
ion through Credit Linked Notes as set out on page 81
2
Excludes equity and other investments of $246 mill
ion (31 December 2023: $409 m
ill
ion). Further deta
ils are set out in Note 12 Financ
ial
instruments
3
Excludes equity and other investments of $1,227 mill
ion (31 December 2023: $1,315 m
ill
ion). Further deta
ils are set out in Note 12 Financ
ial
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 posit
ive and negat
ive mark-to-market values of applicable derivat
ive transact
ions
5
Other assets include cash collateral, and acceptances, in addit
ion to unsettled trades and other ﬁnancial assets
6
Excludes ECL provis
ions of $148 m
ill
ion (31 December 2023: $132 m
ill
ion) wh
ich are reported under Provis
ions for l
iab
il
it
ies and charges
7
Collateral capped at maximum exposure (over-collateralised)
8
Adjusted for over-collateralisat
ion, wh
ich has been determined with reference to the drawn and undrawn component as this best reﬂects the effect on the amount
aris
ing from expected cred
it losses. Loans and advances to customers collateral now re-presented between on and off -balance sheet as it also includes guarantees
9
The amount is after ECL provis
ions. Further deta
ils are set out in Note 20 Assets held for sale and associated liab
il
it
ies
10 Excludes 'Amounts due from subsid
iary undertak
ings and other related parties' of $10,066 mill
ion (31 December 2023: $10,053 m
ill
ion). The amounts are held w
ith
in
stage 1 and rated as 'strong' and is net of an expected credit loss of $2.4 mill
ion (31 December 2023: $20.4 m
ill
ion)
Risk Proﬁle continued
Standard Chartered Bank
62
Directors’ Report and Financ
ial Statements 2024
Analysis of ﬁnanc
ial
instrument by stage (audited)
The table below presents the gross and credit impa
irment balances by stage for amort
ised cost and FVOCI ﬁnanc
ial
instruments as at 31 December 2024.
> Further details can be found in the ‘
Summary of Credit Risk Performance
’ section in page 59.
Group

| 2024
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and |  |  |  |  |  |  |  |  |  |  |  |
balances at |  |  |  |  |  |  |  |  |  |  |  |
central banks | 55,815 | – | 55,815 | 432 | (4) | 428 | 426 | (4) | 422 | 56,673 | (8) | 56,665
Loans and |  |  |  |  |  |  |  |  |  |  |  |
advances |  |  |  |  |  |  |  |  |  |  |  |
to banks |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 22,556 | (5) | 22,551 | 313 | (1) | 312 | 80 | (2) | 78 | 22,949 | (8) | 22,941
Loans and |  |  |  |  |  |  |  |  |  |  |  |
advances to |  |  |  |  |  |  |  |  |  |  |  |
customers |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 149,751 | (254) 149,497 | 7,292 | (193) | 7,099 | 4,098 | (2,452) | 1,646 | 161,141 | (2,899) 158,242
Debt securit ies |  |  |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |  |  |
elig ible b ills 5 | 94,480 | (20) | – | 1,612 | (4) | – | 103 | (2) | – | 96,195 | (26) | –
Amortised cost | 36,867 | (14) | 36,853 | 473 | (2) | 471 | 42 | – | 42 | 37,382 | (16) | 37,366
FVOCI 2 | 57,613 | (6) | – | 1,139 | (2) | – | 61 | (2) | – | 58,813 | (10) | –
Accrued income |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) 4 | 1,846 | – | 1,846 | – | – | – | – | – | – | 1,846 | – | 1,846
Assets held |  |  |  |  |  |  |  |  |  |  |  |
for sale | 822 | (7) | 815 | 38 | – | 38 | 58 | (45) | 13 | 918 | (52) | 866
Other assets | 21,535 | – | 21,535 | – | – | – | 3 | (3) | – | 21,538 | (3) | 21,535
Undrawn |  |  |  |  |  |  |  |  |  |  |  |
commitments 3 | 120,578 | (25) | – | 3,346 | (33) | – | 7 | (1) | – | 123,931 | (59) | –
Financ ial |  |  |  |  |  |  |  |  |  |  |  |
guarantees, |  |  |  |  |  |  |  |  |  |  |  |
trade credits |  |  |  |  |  |  |  |  |  |  |  |
and irrevocable |  |  |  |  |  |  |  |  |  |  |  |
letter of credits 3 | 78,996 | (13) | – | 1,744 | (7) | – | 603 | (129) | – | 81,343 | (149) | –
Total | 546,379 | (324) | – | 14,777 | (242) | – | 5,378 | (2,638) | – | 566,534 | (3,204) | –

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 provis
ion
in respect of debt securit
ies measured at FVOCI
is held with
in the OCI reserve
3
These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a ﬁnanc
ial l
iab
il
ity and therefore there is no “net carrying amount”.
ECL allowances on off-balance sheet instruments are held as liab
il
ity provis
ions to the extent that the drawn and undrawn components of loan exposures can
be separately ident
iﬁed. Otherw
ise they will be reported against the drawn component
4
Stage 1 ECL is not material
5
Stage 3 gross includes $59 mill
ion (2023: $80 m
ill
ion) or
ig
inated cred
it-impa
ired debt secur
it
ies w
ith impa
irment of n
il mill
ion (2023: $14 m
ill
ion)
Risk Proﬁle continued
Standard Chartered Bank
63
Directors’ Report and Financ
ial Statements 2024

| 2023
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and |  |  |  |  |  |  |  |  |  |  |  |
balances at |  |  |  |  |  |  |  |  |  |  |  |
central banks | 63,606 | – | 63,606 | 207 | (7) | 200 | 404 | (12) | 392 | 64,217 | (19) | 64,198
Loans and |  |  |  |  |  |  |  |  |  |  |  |
advances |  |  |  |  |  |  |  |  |  |  |  |
to banks |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 22,210 | (3) | 22,207 | 537 | (9) | 528 | 74 | (6) | 68 | 22,821 | (18) | 22,803
Loans and |  |  |  |  |  |  |  |  |  |  |  |
advances to |  |  |  |  |  |  |  |  |  |  |  |
customers |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 146,718 | (198) 146,520 | 7,657 | (193) | 7,464 | 5,177 | (3,018) | 2,159 | 159,552 | (3,409) | 156,143
Debt securit ies |  |  |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |  |  |
elig ible b ills 5 | 100,092 | (26) |  | 1,861 | (34) |  | 165 | (61) |  | 102,118 | (121) |
Amortised cost | 39,774 | (19) | 39,755 | 103 | (2) | 101 | 121 | (57) | 64 | 39,998 | (78) | 39,920
FVOCI 2 | 60,318 | (7) |  | 1,758 | (32) |  | 44 | (4) |  | 62,120 | (43) |
Accrued income |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) 4 | 1,768 | – | 1,768 | – | – | – | – | – | – | 1,768 | – | 1,768
Assets held |  |  |  |  |  |  |  |  |  |  |  |
for sale 4 | 654 | (34) | 620 | 76 | (4) | 72 | 1 | – | 1 | 731 | (38) | 693
Other assets | 20,714 | – | 20,714 | – | – | – | 3 | (3) | – | 20,717 | (3) | 20,714
Undrawn |  |  |  |  |  |  |  |  |  |  |  |
commitments 3 | 113,301 | (20) |  | 4,596 | (27) | – | 2 | – |  | 117,899 | (47) | –
Financ ial |  |  |  |  |  |  |  |  |  |  |  |
guarantees, |  |  |  |  |  |  |  |  |  |  |  |
trade credits and |  |  |  |  |  |  |  |  |  |  |  |
irrevocable letter |  |  |  |  |  |  |  |  |  |  |  |
of credits 3 | 57,505 | (8) | – | 2,530 | (13) | – | 672 | (112) | – | 60,707 | (133) | –
Total | 526,568 | (289) | – | 17,464 | (287) | – | 6,498 | (3,212) | – 550,530 | (3,788) | –

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 provis
ion
in respect of debt securit
ies measured at FVOCI
is held with
in the OCI reserve
3
These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a ﬁnanc
ial l
iab
il
ity and therefore there is no “net carrying amount”.
ECL allowances on off-balance sheet instruments are held as liab
il
ity provis
ions to the extent that the drawn and undrawn components of loan exposures can be
separately ident
iﬁed. Otherw
ise they will be reported against the drawn component
4
Stage 1 ECL is not material
5
Stage 3 gross includes $80 mill
ion or
ig
inated cred
it-impa
ired debt secur
it
ies and $14 m
ill
ion
impa
irment
Risk Proﬁle continued
Standard Chartered Bank
64
Directors’ Report and Financ
ial Statements 2024
Company

| 2024
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and |  |  |  |  |  |  |  |  |  |  |  |
balances at |  |  |  |  |  |  |  |  |  |  |  |
central banks | 45,093 | – | 45,093 | 140 | – | 140 | – | – | – | 45,233 | – | 45,233
Loans and |  |  |  |  |  |  |  |  |  |  |  |
advances |  |  |  |  |  |  |  |  |  |  |  |
to banks |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 11,545 | (1) | 11,544 | 209 | (1) | 208 | 3 | – | 3 | 11,757 | (2) | 11,755
Loans and |  |  |  |  |  |  |  |  |  |  |  |
advances to |  |  |  |  |  |  |  |  |  |  |  |
customers |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 72,697 | (116) | 72,581 | 4,010 | (99) | 3,911 | 2,685 | (1,580) | 1,105 | 79,392 | (1,795) | 77,597
Debt securit ies |  |  |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |  |  |
elig ible b ills 5 | 81,618 | (16) | – | 244 | (1) | – | – | – |  | 81,862 | (17) | –
Amortised cost | 35,212 | (7) | 35,205 | – | – | – | – | – | – | 35,212 | (7) | 35,205
FVOCI 2 | 46,406 | (9) | – | 244 | (1) | – | – | – |  | 46,650 | (10) | –
Accrued income |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) 4 | 1,256 | – | 1,256 | – | – | – | – | – | – | 1,256 | – | 1,256
Assets held |  |  |  |  |  |  |  |  |  |  |  |
for sale | 479 | (5) | 474 | – | – | – | – | – | – | 479 | (5) | 474
Other assets | 17,587 | – | 17,587 | – | – | – | – | – | – | 17,587 | – | 17,587
Undrawn |  |  |  |  |  |  |  |  |  |  |  |
commitments 3 | 66,520 | (15) | – | 2,770 | (17) | – | 3 | – |  | 69,293 | (32) | –
Financ ial |  |  |  |  |  |  |  |  |  |  |  |
guarantees, |  |  |  |  |  |  |  |  |  |  |  |
trade credits and |  |  |  |  |  |  |  |  |  |  |  |
irrevocable letter |  |  |  |  |  |  |  |  |  |  |  |
of credits 3 | 67,538 | (10) | – | 1,059 | (4) | – | 441 | (102) | – | 69,038 | (116) | –
Total 6 | 364,333 | (163) | – | 8,432 | (122) | – | 3,132 | (1,682) | – | 375,897 | (1,967) | –

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 provis
ion
in respect of debt securit
ies measured at FVOCI
is held with
in the OCI reserve
3
These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a ﬁnanc
ial l
iab
il
ity and therefore there is no “net carrying amount”.
ECL allowances on off-balance sheet instruments are held as liab
il
ity provis
ions to the extent that the drawn and undrawn components of loan exposures can
be separately ident
iﬁed. Otherw
ise they will be reported against the drawn component
4
Stage 1 ECL is not material
5
Stage 3 gross includes nil (2023: $25 mill
ion) or
ig
inated cred
it-impa
ired debt secur
it
ies w
ith impa
irment of n
il (2023: $14mill
ion)
6
Excludes 'Amounts due from subsid
iary undertak
ings and other related parties' of $10,066 mill
ion. The amounts are held w
ith
in stage 1 and rated as 'strong' at
31 December 2024 and is net of an expected credit loss of $2.4 mill
ion
Risk Proﬁle continued
Standard Chartered Bank
65
Directors’ Report and Financ
ial Statements 2024

| 2023
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value | balance 1 | impa irment | value
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and balances |  |  |  |  |  |  |  |  |  |  |  |
at central banks | 52,756 | – | 52,756 | 2 | – | 2 | – | – | – | 52,758 | – | 52,758
Loans and |  |  |  |  |  |  |  |  |  |  |  |
advances to banks |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 9,849 | (1) | 9,848 | 286 | (1) | 285 | 6 | (4) | 2 | 10,141 | (6) | 10,135
Loans and advances |  |  |  |  |  |  |  |  |  |  |  |
to customers |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) | 70,343 | (89) 70,254 | 4,077 | (80) | 3,997 | 3,761 | (2,129) | 1,632 | 78,181 | (2,298) 75,883
Debt securit ies and |  |  |  |  |  |  |  |  |  |  |  |
other elig ible b ills 5 | 92,038 | (23) |  | 315 | – |  | 76 | (56) |  | 92,429 | (79) |
Amortised cost | 38,053 | (11) 38,042 | – | – | – | 76 | (56) | 20 | 38,129 | (67) 38,062
FVOCI 2 | 53,985 | (11) |  | 315 | – |  | – | – |  | 54,300 | (11) |
Accrued income |  |  |  |  |  |  |  |  |  |  |  |
(amortised cost) 4 | 1,151 | – | 1,151 | – | – | – | – | – | – | 1,151 | – | 1,151
Assets held for sale 4 | 52 | – | 52 | – | – | – | – | – | – | 52 | – | 52
Other assets | 16,990 | – | 16,990 | – | – | – | – | – | – | 16,990 | – | 16,990
Undrawn |  |  |  |  |  |  |  |  |  |  |  |
commitments 3 | 65,255 | (15) | – | 3,752 | (18) | – | – | – | – | 69,007 | (33) | –
Financ ial guarantees, |  |  |  |  |  |  |  |  |  |  |  |
trade credits and |  |  |  |  |  |  |  |  |  |  |  |
irrevocable letter |  |  |  |  |  |  |  |  |  |  |  |
of credits 3 | 47,186 | (4) | – | 1,886 | (8) | – | 514 | (87) | – | 49,586 | (99) | –
Total 6 | 355,620 | (132) |  | 10,318 | (107) |  | 4,357 | (2,276) |  | 370,295 | (2,515) |

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 provis
ion
in respect of debt securit
ies measured at FVOCI
is held with
in the OCI reserve
3
These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a ﬁnanc
ial l
iab
il
ity and therefore there is no “net carrying amount”.
ECL allowances on off-balance sheet instruments are held as liab
il
ity provis
ions to the extent that the drawn and undrawn components of loan exposures can
be separately ident
iﬁed. Otherw
ise they will be reported against the drawn component
4
Stage 1 ECL is not material
5
Stage 3 gross includes $25 mill
ion or
ig
inated cred
it-impa
ired debt secur
it
ies and $14 m
ill
ion
impa
irment
6
Excludes 'Amounts due from subsid
iary undertak
ings and other related parties' of $10,053 mill
ion. The amounts are held w
ith
in stage 1 and rated as 'strong' at
31 December 2023 and is net of an expected credit loss of $20.4 mill
ion
Risk Proﬁle continued
Standard Chartered Bank
66
Directors’ Report and Financ
ial Statements 2024
Credit quality analysis (audited)
Credit quality by client segment
For CIB, exposures are analysed by credit grade (CG), which plays a central role in the quality assessment and monitor
ing
of risk. All loans are assigned a CG, which is reviewed period
ically 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-impa
ired) cl
ients. The mapping of credit quality is as follows.
Mapping of credit quality
The Group uses the following internal risk mapping to determine the credit quality for loans.

| Corporate & Investment Banking | Private Banking 1 | Wealth & Retail Banking 4
Credit quality | Internal grade | S&P external ratings | Regulatory PD |  |
descript ion | mapping | equivalent | range (%) | Internal ratings | Number of days past due
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 impa ired)
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+/C | 15.751 to 99.999 | Stressed Assets Group | Past due loans 30 days and over till
|  |  |  | (SAG) Managed | 90 days

1
For Private Banking, classes of risk represent the type of collateral held. Class I represents facil
it
ies with liqu
id collateral, such as cash and marketable secur
it
ies.
Class II represents unsecured/partially secured facil
it
ies and those with ill
iqu
id collateral, such as equity in private enterprises. Class III represents facil
it
ies with
resident
ial or Commerc
ial real estate collateral. Class IV covers margin trading facil
it
ies
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 with
in Bus
iness Banking are managed using the same internal credit grades as CIB
The table below sets out the gross loans and advances held at amortised cost, expected credit loss provis
ions and expected
credit loss coverage by business segment and stage. Expected credit loss coverage represents the expected credit loss
reported for each segment and stage as a proportion of the gross loan balance for each segment and stage.
> Further details can be found in the ‘
Summary of Credit Risk Performance
’ section in page 59.
Risk Proﬁle continued
Standard Chartered Bank
67
Directors’ Report and Financ
ial Statements 2024
Loans and advances by client segment (audited)
Group

| 2024
|  | Customers |  |
|  | Corporate |  |  |  |  |  |
|  | & | Wealth & |  |  |  |  |
|  | Investment | Retail |  | Central & | Customer | Undrawn | Financ ial
| Banks | Banking | Banking | Ventures | other items | Total | commitments | Guarantees
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Stage 1 | 22,556 | 83,297 | 45,743 | 584 | 20,127 | 149,751 | 120,578 | 78,996
• Strong | 14,002 | 59,798 | 41,697 | 576 | 19,750 | 121,821 | 109,269 | 50,039
• Satisfactory | 8,554 | 23,499 | 4,046 | 8 | 377 | 27,930 | 11,309 | 28,957
Stage 2 | 313 | 6,251 | 1,001 | 5 | 35 | 7,292 | 3,346 | 1,744
• Strong | 7 | 896 | 684 | – | – | 1,580 | 851 | 371
• Satisfactory | 121 | 4,683 | 81 | – | – | 4,764 | 2,341 | 1,210
• Higher risk | 185 | 672 | 236 | 5 | 35 | 948 | 154 | 163
Of which (stage 2): |  |  |  |  |  |  |  |
• Less than 30 days past due | – | 52 | 81 | – | – | 133 | – | –
• More than 30 days past due | 2 | 5 | 236 | 5 | – | 246 | – | –
Stage 3, credit-impa ired ﬁnancial assets | 80 | 2,877 | 1,117 | 6 | 98 | 4,098 | 7 | 603
Gross balance¹ | 22,949 | 92,425 | 47,861 | 595 | 20,260 | 161,141 | 123,931 | 81,343
Stage 1 | (5) | (69) | (174) | (11) | – | (254) | (25) | (13)
• Strong | (4) | (26) | (133) | (10) | – | (169) | (14) | (5)
• Satisfactory | (1) | (43) | (41) | (1) | – | (85) | (11) | (8)
Stage 2 | (1) | (134) | (55) | (4) | – | (193) | (33) | (7)
• Strong | – | (4) | (17) | – | – | (21) | (2) | –
• Satisfactory | (1) | (95) | (7) | – | – | (102) | (22) | (4)
• Higher risk | – | (35) | (31) | (4) | – | (70) | (9) | (3)
Of which (stage 2): |  |  |  |  |  |  |  |
• Less than 30 days past due | – | (1) | (7) | – | – | (8) | – | –
• More than 30 days past due | – | – | (31) | (4) | – | (35) | – | –
Stage 3, credit-impa ired ﬁnancial assets | (2) | (1,830) | (616) | (6) | – | (2,452) | (1) | (129)
Total credit impa irment | (8) | (2,033) | (845) | (21) | – | (2,899) | (59) | (149)
Net carrying value | 22,941 | 90,392 | 47,016 | 574 | 20,260 | 158,242 |  |
Stage 1 | 0.0% | 0.1% | 0.4% | 1.9% | 0.0% | 0.2% | 0.0% | 0.0%
• Strong | 0.0% | 0.0% | 0.3% | 1.7% | 0.0% | 0.1% | 0.0% | 0.0%
• Satisfactory | 0.0% | 0.2% | 1.0% | 12.5% | 0.0% | 0.3% | 0.1% | 0.0%
Stage 2 | 0.3% | 2.1% | 5.5% | 80.0% | 0.0% | 2.6% | 1.0% | 0.4%
• Strong | 0.0% | 0.4% | 2.5% | 0.0% | 0.0% | 1.3% | 0.2% | 0.0%
• Satisfactory | 0.8% | 2.0% | 8.6% | 0.0% | 0.0% | 2.1% | 0.9% | 0.3%
• Higher risk | 0.0% | 5.2% | 13.1% | 80.0% | 0.0% | 7.4% | 5.8% | 1.8%
Of which (stage 2): |  |  |  |  |  |  |  |
• Less than 30 days past due | 0.0% | 1.9% | 8.6% | 0.0% | 0.0% | 6.0% | 0.0% | 0.0%
• More than 30 days past due | 0.0% | 0.0% | 13.1% | 80.0% | 0.0% | 14.2% | 0.0% | 0.0%
Stage 3, credit-impa ired ﬁnancial assets (S3) | 2.5% | 63.6% | 55.1% | 100.0% | 0.0% | 59.8% | 14.3% | 21.4%
• Stage 3 Collateral | 1 | 169 | 412 | – | – | 581 | – | 45
• Stage 3 Cover ratio (after collateral) | 3.8% | 69.5% | 92.0% | 100.0% | 0.0% | 74.0% | 14.3% | 28.9%
Cover ratio | 0.0% | 2.2% | 1.8% | 3.5% | 0.0% | 1.8% | 0.0% | 0.2%
Fair value through proﬁt or loss |  |  |  |  |  |  |  |
Performing | 29,725 | 41,897 | – | – | – | 41,897 | – | –
• Strong | 23,890 | 24,589 | – | – | – | 24,589 | – | –
• Satisfactory | 5,825 | 17,200 | – | – | – | 17,200 | – | –
• Higher risk | 10 | 108 | – | – | – | 108 | – | –
Defaulted (CG13-14) | – | 3 | – | – | – | 3 | – | –
Gross balance (FVTPL) 2 | 29,725 | 41,900 | – | – | – | 41,900 | – | –
Net carrying value (incl FVTPL) | 52,666 | 132,292 | 47,016 | 574 | 20,260 | 200,142 | – | –

1
Loans and advances includes reverse repurchase agreements and other sim
ilar secured lend
ing of $9,121 mill
ion under Customers and of $2,889 m
ill
ion under Banks,
held at amortised cost
2
Loans and advances includes reverse repurchase agreements and other sim
ilar secured lend
ing of $37,911 mill
ion under Customers and of $27,692 m
ill
ion under Banks,
held at fair value through proﬁt or loss
Risk Proﬁle continued
Standard Chartered Bank
68
Directors’ Report and Financ
ial Statements 2024
Group

| 2023
|  | Customers |  |
|  | Corporate |  |  |  |  |  |
|  | & | Wealth & |  |  |  |  |
|  | Investment | Retail |  | Central & | Customer | Undrawn | Financ ial
| Banks | Banking | Banking | Ventures | other items | Total | commitments | Guarantees
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Stage 1 | 22,210 | 77,513 | 46,378 | 235 | 22,592 | 146,718 | 113,301 | 57,505
• Strong | 14,756 | 55,407 | 42,362 | 232 | 22,254 | 120,255 | 104,198 | 37,642
• Satisfactory | 7,454 | 22,106 | 4,016 | 3 | 338 | 26,463 | 9,103 | 19,863
Stage 2 | 537 | 5,696 | 994 | 2 | 965 | 7,657 | 4,596 | 2,530
• Strong | 53 | 862 | 659 | – | – | 1,521 | 947 | 801
• Satisfactory | 211 | 3,955 | 100 | – | – | 4,055 | 3,168 | 1,472
• Higher risk | 273 | 879 | 235 | 2 | 965 | 2,081 | 481 | 257
Of which (stage 2): |  |  |  |  |  |  |  |
• Less than 30 days past due | – | 78 | 100 | – | – | 178 | – | –
• More than 30 days past due | – | 10 | 235 | 2 | – | 247 | – | –
Stage 3, credit-impa ired ﬁnancial assets | 74 | 3,887 | 1,064 | 2 | 224 | 5,177 | 2 | 672
Gross balance¹ | 22,821 | 87,096 | 48,436 | 239 | 23,781 | 159,552 | 117,899 | 60,707
Stage 1 | (3) | (68) | (123) | (7) | – | (198) | (20) | (8)
• Strong | (2) | (26) | (80) | (7) | – | (113) | (8) | (1)
• Satisfactory | (1) | (42) | (43) | – | – | (85) | (12) | (7)
Stage 2 | (9) | (133) | (59) | – | (1) | (193) | (27) | (13)
• Strong | – | (11) | (22) | – | – | (33) | (3) | –
• Satisfactory | (2) | (64) | (7) | – | – | (71) | (15) | (6)
• Higher risk | (7) | (58) | (30) | – | (1) | (89) | (9) | (7)
Of which (stage 2): |  |  |  |  |  |  |  |
• Less than 30 days past due | – | (1) | (7) | – | – | (8) | – | –
• More than 30 days past due | – | (1) | (30) | – | – | (31) | – | –
Stage 3, credit-impa ired ﬁnancial assets | (6) | (2,362) | (639) | (2) | (15) | (3,018) | – | (112)
Total credit impa irment | (18) | (2,563) | (821) | (9) | (16) | (3,409) | (47) | (133)
Net carrying value | 22,803 | 84,533 | 47,615 | 230 | 23,765 | 156,143 | – | –
Stage 1 | 0.0% | 0.1% | 0.3% | 3.0% | 0.0% | 0.1% | 0.0% | 0.0%
• Strong | 0.0% | 0.0% | 0.2% | 3.0% | 0.0% | 0.1% | 0.0% | 0.0%
• Satisfactory | 0.0% | 0.2% | 1.1% | 0.0% | 0.0% | 0.3% | 0.1% | 0.0%
Stage 2 | 1.7% | 2.3% | 5.9% | 0.0% | 0.1% | 2.5% | 0.6% | 0.5%
• Strong | 0.0% | 1.3% | 3.3% | 0.0% | 0.0% | 2.2% | 0.3% | 0.0%
• Satisfactory | 0.9% | 1.6% | 7.0% | 0.0% | 0.0% | 1.8% | 0.5% | 0.4%
• Higher risk | 2.6% | 6.6% | 12.8% | 0.0% | 0.1% | 4.3% | 1.9% | 2.7%
Of which (stage 2): |  |  |  |  |  |  |  |
• Less than 30 days past due | 0.0% | 1.3% | 7.0% | 0.0% | 0.0% | 4.5% | 0.0% | 0.0%
• More than 30 days past due | 0.0% | 10.0% | 12.8% | 0.0% | 0.0% | 12.6% | 0.0% | 0.0%
Stage 3, credit-impa ired ﬁnancial assets (S3) | 8.1% | 60.8% | 60.1% | 100.0% | 6.7% | 58.3% | 0.0% | 16.7%
• Stage 3 Collateral | 2 | 350 | 393 | – | – | 743 | – | 34
• Stage 3 Cover ratio (after collateral) | 10.8% | 69.8% | 97.0% | 100.0% | 6.7% | 72.6% | 0.0% | 21.7%
Cover ratio | 0.1% | 2.9% | 1.7% | 3.8% | 0.1% | 2.1% | 0.0% | 0.2%
Fair value through proﬁt or loss |  |  |  |  |  |  |  |
Performing | 28,318 | 45,266 | – | – | – | 45,266 | – | –
• Strong | 23,954 | 27,667 | – | – | – | 27,667 | – | –
• Satisfactory | 4,364 | 17,536 | – | – | – | 17,536 | – | –
• Higher risk | – | 63 | – | – | – | 63 | – | –
Defaulted (CG13-14) | – | 18 | – | – | – | 18 | – | –
Gross balance (FVTPL) 2 | 28,318 | 45,284 | – | – | – | 45,284 | – | –
Net carrying value (incl FVTPL) | 51,121 | 129,817 | 47,615 | 230 | 23,765 | 201,427 | – | –

1
Loans and advances includes reverse repurchase agreements and other sim
ilar secured lend
ing of $13,827 mill
ion under Customers and of $1,653 m
ill
ion under Banks,
held at amortised cost
2
Loans and advances includes reverse repurchase agreements and other sim
ilar secured lend
ing of $42,096 mill
ion under Customers and of $26,053 m
ill
ion under Banks,
held at fair value through proﬁt and loss.
Risk Proﬁle continued
Standard Chartered Bank
69
Directors’ Report and Financ
ial Statements 2024
Loans and advances by client segment (audited)
Company
Amortised cost
2024
Banks
$mill
ion
Customers
Undrawn
commitments
$mill
ion
Financ
ial
Guarantees
$mill
ion
Corporate
&
Investment
Banking
$mill
ion
Wealth &
Retail
Banking
$mill
ion
Central &
other items
$mill
ion
Customer
Total
$mill
ion
Stage 1
11,545
60,503
11,380
814
72,697
66,520
67,538
• Strong
6,614
44,809
9,397
501
54,707
57,856
41,193
• Satisfactory
4,931
15,694
1,983
313
17,990
8,664
26,345
Stage 2
209
3,787
223
–
4,010
2,770
1,059
• Strong
3
367
99
–
466
539
250
• Satisfactory
118
3,074
38
–
3,112
2,152
744
• Higher risk
88
346
86
–
432
79
65
Of which (stage 2):
•
Less than 30 days past due
–
42
38
–
80
–
–
•
More than 30 days past due
–
–
86
–
86
–
–
Stage 3, credit-impa
ired ﬁnancial assets
3
2,005
680
–
2,685
3
441
Gross balance¹
11,757
66,295
12,283
814
79,392
69,293
69,038
Stage 1
(1)
(48)
(68)
–
(116)
(15)
(10)
• Strong
–
(16)
(59)
–
(75)
(7)
(3)
• Satisfactory
(1)
(32)
(9)
–
(41)
(8)
(7)
Stage 2
(1)
(68)
(31)
–
(99)
(17)
(4)
• Strong
–
-
(5)
–
(5)
(2)
–
• Satisfactory
(1)
(48)
(2)
–
(50)
(13)
(2)
• Higher risk
–
(20)
(24)
–
(44)
(2)
(2)
Of which (stage 2):
•
Less than 30 days past due
–
–
(2)
–
(2)
–
–
•
More than 30 days past due
–
–
(24)
–
(24)
–
–
Stage 3, credit-impa
ired ﬁnancial assets
–
(1,175)
(405)
–
(1,580)
–
(102)
Total credit impa
irment
(2)
(1,291)
(504)
–
(1,795)
(32)
(116)
Net carrying value
11,755
65,004
11,779
814
77,597
Stage 1
0.0%
0.1%
0.6%
0.0%
0.2%
0.0%
0.0%
• Strong
0.0%
0.0%
0.6%
0.0%
0.1%
0.0%
0.0%
• Satisfactory
0.0%
0.2%
0.5%
0.0%
0.2%
0.1%
0.0%
Stage 2
0.5%
1.8%
13.9%
0.0%
2.5%
0.6%
0.4%
• Strong
0.0%
0.0%
5.1%
0.0%
1.1%
0.4%
0.0%
• Satisfactory
0.8%
1.6%
5.3%
0.0%
1.6%
0.6%
0.3%
• Higher risk
0.0%
5.8%
27.9%
0.0%
10.2%
2.5%
3.1%
Of which (stage 2):
•
Less than 30 days past due
0.0%
0.0%
5.3%
0.0%
2.5%
0.0%
0.0%
•
More than 30 days past due
0.0%
0.0%
27.9%
0.0%
27.9%
0.0%
0.0%
Stage 3, credit-impa
ired ﬁnancial assets (S3)
0.0%
58.6%
59.6%
0.0%
58.8%
0.0%
23.1%
• Stage 3 Collateral
–
123
244
–
367
–
20
•
Stage 3 Cover ratio (after collateral)
0.0%
64.7%
95.4%
0.0%
72.5%
0.0%
27.7%
Cover ratio
0.0%
1.9%
4.1%
0.0%
2.3%
0.0%
0.2%
Fair value through proﬁt or loss
Performing
26,846
40,449
–
–
40,449
–
–
• Strong
21,409
23,548
–
–
23,548
–
–
• Satisfactory
5,437
16,882
–
–
16,882
–
–
• Higher risk
–
19
–
–
19
–
–
Defaulted (CG13-14)
–
2
–
–
2
–
–
Gross balance (FVTPL)
2
26,846
40,451
–
–
40,451
–
–
Net carrying value (incl FVTPL)
3
38,601
105,455
11,779
814
118,048
–
–
1
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing for $9,041 mill
ion under Customers and for $1,423 m
ill
ion under Banks,
held at amortised cost
2
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing for $37,175 mill
ion under Customers and for $24,966 m
ill
ion under Banks,
held at fair value through proﬁt and loss
3
Excludes 'Amounts due from subsid
iary undertak
ings and other related parties' of $10,066 mill
ion. The amounts are held w
ith
in stage 1 and rated as 'strong' at 31
December 2024 and is net of an expected credit loss of $2.4 mill
ion
Risk Proﬁle continued
Standard Chartered Bank
70
Directors’ Report and Financ
ial Statements 2024
Company
Amortised cost

| 2023
| Customers |  |
|  | Corporate |  |  |  |  |
|  | & | Wealth & |  |  |  |
|  | Investment | Retail | Central & | Customer | Undrawn | Financ ial
| Banks | Banking | Banking | other items | Total | commitments | Guarantees
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Stage 1 | 9,849 | 57,077 | 12,096 | 1,170 | 70,343 | 65,255 | 47,186
• Strong | 5,987 | 42,254 | 9,812 | 867 | 52,933 | 58,451 | 30,160
• Satisfactory | 3,862 | 14,823 | 2,284 | 303 | 17,410 | 6,804 | 17,026
Stage 2 | 286 | 3,819 | 258 | – | 4,077 | 3,752 | 1,886
• Strong | 54 | 437 | 119 | – | 556 | 700 | 679
• Satisfactory | 201 | 2,954 | 50 | – | 3,004 | 2,690 | 1,098
• Higher risk | 31 | 428 | 89 | – | 517 | 362 | 109
Of which (stage 2): |  |  |  |  |  |  |
• Less than 30 days past due | – | 69 | 50 | – | 119 | – | –
• More than 30 days past due | – | 8 | 89 | – | 97 | – | –
Stage 3, credit-impa ired ﬁnancial assets | 6 | 2,907 | 630 | 224 | 3,761 | – | 514
Gross balance¹ | 10,141 | 63,803 | 12,984 | 1,394 | 78,181 | 69,007 | 49,586
Stage 1 | (1) | (35) | (54) | – | (89) | (15) | (4)
• Strong | (1) | (17) | (35) | – | (52) | (6) | –
• Satisfactory | – | (18) | (19) | – | (37) | (9) | (4)
Stage 2 | (1) | (52) | (28) | – | (80) | (18) | (8)
• Strong | (1) | (3) | (3) | – | (6) | (2) | –
• Satisfactory | – | (29) | (2) | – | (31) | (11) | (6)
• Higher risk | – | (20) | (23) | – | (43) | (5) | (2)
Of which (stage 2): |  |  |  |  |  |  |
• Less than 30 days past due | – | – | (2) | – | (2) | – | –
• More than 30 days past due | – | (1) | (23) | – | (24) | – | –
Stage 3, credit-impa ired ﬁnancial assets | (4) | (1,715) | (399) | (15) | (2,129) | – | (87)
Total credit impa irment | (6) | (1,802) | (481) | (15) | (2,298) | (33) | (99)
Net carrying value | 10,135 | 62,001 | 12,503 | 1,379 | 75,883 | – | –
Stage 1 | 0.0% | 0.1% | 0.4% | 0.0% | 0.1% | 0.0% | 0.0%
• Strong | 0.0% | 0.0% | 0.4% | 0.0% | 0.1% | 0.0% | 0.0%
• Satisfactory | 0.0% | 0.1% | 0.8% | 0.0% | 0.2% | 0.1% | 0.0%
Stage 2 | 0.3% | 1.4% | 10.9% | 0.0% | 2.0% | 0.5% | 0.4%
• Strong | 1.9% | 0.7% | 2.5% | 0.0% | 1.1% | 0.3% | 0.0%
• Satisfactory | 0.0% | 1.0% | 4.0% | 0.0% | 1.0% | 0.4% | 0.5%
• Higher risk | 0.0% | 4.7% | 25.8% | 0.0% | 8.3% | 1.4% | 1.8%
Of which (stage 2): |  |  |  |  |  |  |
• Less than 30 days past due | 0.0% | 0.0% | 4.0% | 0.0% | 1.7% | 0.0% | 0.0%
• More than 30 days past due | 0.0% | 12.5% | 25.8% | 0.0% | 24.7% | 0.0% | 0.0%
Stage 3, credit-impa ired ﬁnancial assets (S3) | 66.7% | 59.0% | 63.3% | 6.7% | 56.6% | 0.0% | 16.9%
• Stage 3 Collateral | – | 293 | 217 | – | 510 | – | 22
• Stage 3 Cover ratio (after collateral) | 66.7% | 69.1% | 97.8% | 6.7% | 70.2% | 0.0% | 21.2%
Cover ratio | 0.1% | 2.8% | 3.7% | 1.1% | 2.9% | 0.0% | 0.2%
Fair value through proﬁt or loss |  |  |  |  |  |  |
Performing | 25,655 | 44,013 | – | – | 44,013 | – | –
• Strong | 21,448 | 26,803 | – | – | 26,803 | – | –
• Satisfactory | 4,207 | 17,210 | – | – | 17,210 | – | –
• Higher risk | – | – | – | – | – | – | –
Defaulted (CG13-14) | – | 2 | – | – | 2 | – | –
Gross balance (FVTPL) 2 | 25,655 | 44,015 | – | – | 44,015 | – | –
Net carrying value (incl FVTPL) 3 | 35,790 | 106,016 | 12,503 | 1,379 | 119,898 | – | –

1
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing of $12,212 mill
ion under Customers and of $554 m
ill
ion under Banks,
held at amortised cost
2
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing of $41,393 mill
ion under Customers and of $23,411 m
ill
ion under Banks,
held at fair value through proﬁt and loss
3
Excludes 'Amounts due from subsid
iary undertak
ings and other related parties' of $10,053 mill
ion. The amounts are held w
ith
in stage 1 and rated as 'strong' at 31
December 2023 and is net of an expected credit loss of $20.4 mill
ion
Risk Proﬁle continued
Standard Chartered Bank
71
Directors’ Report and Financ
ial Statements 2024
Movement in gross exposures and credit impa
irment for loans and advances, debt secur
it
ies, undrawn
commitments and ﬁnanc
ial guarantees (aud
ited)
The tables overleaf set out the movement in gross exposures and credit impa
irment by stage
in respect of amortised cost
loans to banks and customers, undrawn commitments, ﬁnanc
ial guarantees and debt secur
it
ies class
if
ied at amort
ised
cost and FVOCI.
Methodology
The movement lines with
in the tables are an aggregat
ion of monthly movements over the year and will therefore reﬂect
the accumulation of multiple trades during the year. The credit impa
irment charge
in the income statement comprises the
amounts with
in 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 ﬁnanc
ial
instruments only.
The approach for determin
ing the key l
ine items in the tables is set out below.
•
Transfers
– transfers between stages are deemed to occur at the beginn
ing of a month based on pr
ior month closing
balances.
•
Net remeasurement from stage changes
– the remeasurement of credit impa
irment prov
is
ions ar
is
ing from a change
in
stage is reported with
in the stage that the assets are transferred to. For example, assets transferred
into stage 2 are
remeasured from a 12 month to a lifet
ime expected cred
it loss, with the effect of remeasurement reported in stage 2.
For stage 3, this represents the in
it
ial remeasurement from specif
ic prov
is
ions recogn
ised on ind
iv
idual assets transferred
into stage 3 in the year.
•
Net changes in exposures
– new business written less repayments in the year. With
in stage 1, new bus
iness written will
attract up to 12 months of expected credit loss charges. Repayments of non-amortis
ing loans (pr
imar
ily w
ith
in CIB) w
ill
have low amounts of expected credit loss provis
ions attr
ibuted to them, due to the release of provis
ions over the term to
maturity. In stages 2 and 3, the net change in exposures reﬂect repayments although stage 2 may include new facil
it
ies
where clients are on non-purely precautionary early alert, are a credit grade 12, or when non-investment grade debt
securit
ies are acqu
ired.
•
Changes in risk parameters
– for stages 1 and 2, this reﬂects changes in the PD, LGD and EAD of assets during the year,
which includes the impact of releasing provis
ions over the term to matur
ity. It also includes the effect of changes in
forecasts of macroeconomic variables during the year and movements in management overlays. In stage 3, this line
represents addit
ional spec
if
ic prov
is
ions recogn
ised on exposures held with
in stage 3.
•
Interest due but not paid
– change in contractual amount of interest due in stage 3 ﬁnanc
ial
instruments but not paid,
being the net of accruals, repayments and write-offs, together with the corresponding change in credit impa
irment.
Changes to ECL models, which incorporates changes to model approaches and methodologies, is not reported as
a separate line item as it has an impact over a number of lines and stages.
Movements during the year
Stage 1 gross exposures increased by $26 bill
ion to $466 b
ill
ion (31 December 2023: $440 b
ill
ion). CIB exposure
increased
by $28 bill
ion to $360 b
ill
ion (31 December 2023: $332 b
ill
ion), due to
increase in exposures in ﬁnanc
ial guarantees. WRB
exposures increased by $0.8 bill
ion to $78.8 b
ill
ion (31 December 2023: $78 b
ill
ion), dr
iven by off balance sheet commitments.
Total stage 1 provis
ions
increased by $62 mill
ion to $317 m
ill
ion (31 December 2023: $255 m
ill
ion). CIB prov
is
ions
increased
by $26 mill
ion to $131 m
ill
ion (31 December 2023: $105 m
ill
ion) wh
ich includes new overlays of $25 mill
ion, pr
imar
ily
in
Bangladesh. WRB provis
ions
increased by $49 mill
ion to $180 m
ill
ion (31 December 2023: $131 m
ill
ion), due to del
inquenc
ies
in
the personal loans and unsecured lending portfolio.
Stage 2 gross exposures decreased by $3 bill
ion to $14 b
ill
ion (31 December 2023: $17 b
ill
ion), pr
imar
ily dr
iven by a net reduction
in CIB exposures from off balance sheet instruments.
Stage 2 provis
ions decreased by $39 m
ill
ion to $237 m
ill
ion (31 December 2023: $276 m
ill
ion). Most of the decrease
is from
Central and other items driven by sovereign upgrades and exposure reductions. CIB provis
ions rema
in unchanged at
$0.2 bill
ion (31 December 2023: $0.2 b
ill
ion) as portfol
io movements were largely offset by $17 mill
ion of new overlays.
Stage 3 gross exposures decreased by $1.2 bill
ion to $4.9 b
ill
ion (31 December 2023: $6.1 b
ill
ion) due to repayments and
write-offs, leading to a decrease in stage 3 provis
ions by $0.6 b
ill
ion to $2.6 b
ill
ion (31 December 2023: $3.2 b
ill
ion).
WRB stage 3 loans is stable at $1.1 bill
ion (31 December 2023: $1.1 b
ill
ion).
Risk Proﬁle continued
Standard Chartered Bank
72
Directors’ Report and Financ
ial Statements 2024
All segments – Group (audited)

| Stage 1 | Stage 2 | Stage 3 5 | Total
| Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |
Amortised cost and | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net
FVOCI | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at |  |  |  |  |  |  |  |  |  |  |  |
1 January 2023 | 430,079 | (330) 429,749 | 20,469 | (349) | 20,120 | 7,173 | (3,831) | 3,342 | 457,721 | (4,510) | 453,211
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 1 | 11,184 | (515) | 10,669 | (11,174) | 515 | (10,659) | (10) | – | (10) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 2 | (26,645) | 130 | (26,515) | 26,784 | (138) | 26,646 | (139) | 8 | (131) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 3 | (19) | 1 | (18) | (1,523) | 132 | (1,391) | 1,542 | (133) | 1,409 | – | – | –
Net change in |  |  |  |  |  |  |  |  |  |  |  |
exposures | 20,964 | (150) | 20,814 | (14,050) | 19 | (14,031) | (1,476) | 460 | (1,016) | 5,438 | 329 | 5,767
Net |  |  |  |  |  |  |  |  |  |  |  |
remeasurement |  |  |  |  |  |  |  |  |  |  |  |
from stage |  |  |  |  |  |  |  |  |  |  |  |
changes | – | 48 | 48 | – | (153) | (153) | – | (61) | (61) | – | (166) | (166)
Changes in |  |  |  |  |  |  |  |  |  |  |  |
models | – | – | – | – | – | – | – | – | – | – | – | –
Changes in risk |  |  |  |  |  |  |  |  |  |  |  |
parameters | – | 160 | 160 | – | 53 | 53 | – | (503) | (503) | – | (290) | (290)
Derecognised | – | – | – | – | – | – | – | – | – | – | – | –
Write-offs | – | – | – | – | – | – | (666) | 666 | – | (666) | 666 | –
Interest due |  |  |  |  |  |  |  |  |  |  |  |
but unpaid | – | – | – | – | – | – | (19) | 19 | – | (19) | 19 | –
Discount unwind | – | – | – | – | – | – | – | 139 | 139 | – | 139 | 139
Exchange |  |  |  |  |  |  |  |  |  |  |  |
translation |  |  |  |  |  |  |  |  |  |  |  |
differences and |  |  |  |  |  |  |  |  |  |  |  |
other movements¹ | 4,263 | 401 | 4,664 | (3,325) | (355) | (3,680) | (315) | 39 | (276) | 623 | 85 | 708
As at |  |  |  |  |  |  |  |  |  |  |  |
31 December 2023 ² | 439,826 | (255) 439,571 | 17,181 | (276) | 16,905 | 6,090 | (3,197) | 2,893 | 463,097 | (3,728) 459,369
Income statement |  |  |  |  |  |  |  |  |  |  |  |
ECL (charge)/ |  |  |  |  |  |  |  |  |  |  |  |
release 3 |  | 58 |  |  | (81) |  |  | (104) |  |  | (127) |
Recoveries of |  |  |  |  |  |  |  |  |  |  |  |
amounts |  |  |  |  |  |  |  |  |  |  |  |
previously |  |  |  |  |  |  |  |  |  |  |  |
written off |  | – |  |  | – |  |  | 185 |  |  | 185 |
Total credit |  |  |  |  |  |  |  |  |  |  |  |
impa irment |  |  |  |  |  |  |  |  |  |  |  |
(charge)/release 4 |  | 58 |  |  | (81) |  |  | 81 |  |  | 58 |

Risk Proﬁle continued
Standard Chartered Bank
73
Directors’ Report and Financ
ial Statements 2024
All segments – Group (audited) continued

| Stage 1 | Stage 2 | Stage 3 5 | Total
| Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |
Amortised cost and | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net
FVOCI | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at |  |  |  |  |  |  |  |  |  |  |  |
1 January 2024 | 439,826 | (255) | 439,571 | 17,181 | (276) | 16,905 | 6,090 | (3,197) | 2,893 463,097 |  | (3,728) | 459,369
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 1 | 10,616 | (351) | 10,265 (10,609) | 351 (10,258) | (7) | – | (7) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 2 | (21,414) | 78 | (21,336) | 21,836 | (103) | 21,733 | (422) | 25 | (397) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 3 | (1,531) | 62 | (1,469) | 538 | 44 | 582 | 993 | (106) | 887 | – | – | –
Net change |  |  |  |  |  |  |  |  |  |  |  |
in exposures | 48,007 | (169) | 47,838 | (12,337) | 25 | (12,312) | (1,023) | 578 | (445) | 34,647 | 434 | 35,081
Net |  |  |  |  |  |  |  |  |  |  |  |
remeasurement |  |  |  |  |  |  |  |  |  |  |  |
from stage |  |  |  |  |  |  |  |  |  |  |  |
changes | – | 33 | 33 | – | (118) | (118) | – | (94) | (94) | – | (179) | (179)
Changes in |  |  |  |  |  |  |  |  |  |  |  |
models | – | – | – | – | – | – | – | – | – | – | – | –
Changes in risk |  |  |  |  |  |  |  |  |  |  |  |
parameters | – | 69 | 69 | – | (42) | (42) | – | (467) | (467) | – | (440) | (440)
Derecognised | – | – | – | – | – | – | – | – | – | – | – | –
Write-offs | – | – | – | – | – | – | (687) | 687 | – | (687) | 687 | –
Interest due |  |  |  |  |  |  |  |  |  |  |  |
but unpaid | – | – | – | – | – | – | (132) | 132 | – | (132) | 132 | –
Discount unwind | – | – | – | – | – | – | – | 106 | 106 | – | 106 | 106
Exchange |  |  |  |  |  |  |  |  |  |  |  |
translation |  |  |  |  |  |  |  |  |  |  |  |
differences and |  |  |  |  |  |  |  |  |  |  |  |
other movements¹ | (9,143) | 216 | (8,927) | (2,302) | (118) | (2,420) | 79 | (250) | (171) | (11,366) | (152) | (11,518)
As at |  |  |  |  |  |  |  |  |  |  |  |
31 December |  |  |  |  |  |  |  |  |  |  |  |
2024² | 466,361 | (317)466,044 | 14,307 | (237) | 14,070 | 4,891 | (2,586) | 2,305 | 485,559 | (3,140) 482,419
Income statement |  |  |  |  |  |  |  |  |  |  |  |
ECL (charge)/ |  |  |  |  |  |  |  |  |  |  |  |
release 3 |  | (67) |  |  | (135) |  |  | 17 |  |  | (185) |
Recoveries of |  |  |  |  |  |  |  |  |  |  |  |
amounts |  |  |  |  |  |  |  |  |  |  |  |
previously |  |  |  |  |  |  |  |  |  |  |  |
written off |  | – |  |  | – |  |  | 167 |  |  | 167 |
Total credit |  |  |  |  |  |  |  |  |  |  |  |
impa irment |  |  |  |  |  |  |  |  |  |  |  |
(charge)/release 4 |  | (67) |  |  | (135) |  |  | 184 |  |  | (18) |

1
Includes fair value adjustments and amortisat
ion on debt secur
it
ies
2
Excludes Cash and balances at central banks, Accrued income, Assets held for sale and Other assets gross balance of $80,975 mill
ion (31 December 2023: $87,433
mill
ion) and total cred
it impa
irment of $63 m
ill
ion (31 December 2023: $60 m
ill
ion)
3
Does not include release relating to Other assets of $3 mill
ion (31 December 2023: $N
il mill
ion)
4 Reported basis
5
Stage 3 gross includes $59 mill
ion (31 December 2023: $80 m
ill
ion) and ECL N
il mill
ion (31 December 2023: $14 m
ill
ion) or
ig
inated cred
it-impa
ired debt secur
it
ies
6
The gross balance includes the notional amount of off balance sheet instruments
Risk Proﬁle continued
Standard Chartered Bank
74
Directors’ Report and Financ
ial Statements 2024
All segments – Company (audited)

| Stage 1 | Stage 2 | Stage 3 5 | Total
| Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |
Amortised cost and | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net
FVOCI | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at |  |  |  |  |  |  |  |  |  |  |  |
1 January 2023 | 280,763 | (195) 280,568 | 12,812 | (120) | 12,692 | 5,435 | (2,789) | 2,646 | 299,010 | (3,104) 295,906
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 1 | 8,709 | (222) | 8,487 | (8,699) | 222 | (8,477) | (10) | – | (10) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 2 | (17,712) | 43 | (17,669) | 17,784 | (48) | 17,736 | (72) | 5 | (67) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 3 | – | – | – | (767) | 117 | (650) | 767 | (117) | 650 | – | – | –
Net change |  |  |  |  |  |  |  |  |  |  |  |
in exposures | 8,702 | (56) | 8,646 | (9,095) | 12 | (9,083) | (1,088) | 273 | (815) | (1,481) | 229 | (1,252)
Net |  |  |  |  |  |  |  |  |  |  |  |
remeasurement |  |  |  |  |  |  |  |  |  |  |  |
from stage |  |  |  |  |  |  |  |  |  |  |  |
changes | – | – | – | – | (16) | (16) | – | (32) | (32) | – | (48) | (48)
Changes in risk |  |  |  |  |  |  |  |  |  |  |  |
parameters | – | 64 | 64 | – | 93 | 93 | – | (330) | (330) | – | (173) | (173)
Write-offs | – | – | – | – | – | – | (435) | 435 | – | (435) | 435 | –
Interest due |  |  |  |  |  |  |  |  |  |  |  |
but unpaid | – | – | – | – | – | – | (154) | 154 | – | (154) | 154 | –
Discount unwind | – | – | – | – | – | – | – | 139 | 139 | – | 139 | 139
Exchange |  |  |  |  |  |  |  |  |  |  |  |
translation |  |  |  |  |  |  |  |  |  |  |  |
differences and |  |  |  |  |  |  |  |  |  |  |  |
other movements¹ | 4,209 | 234 | 4,443 | (1,719) | (367) | (2,086) | (86) | (14) | (100) | 2,404 | (147) | 2,257
As at |  |  |  |  |  |  |  |  |  |  |  |
31 December |  |  |  |  |  |  |  |  |  |  |  |
2023² | 284,671 | (132) 284,539 | 10,316 | (107) | 10,209 | 4,357 | (2,276) | 2,081 | 299,344 | (2,515) 296,829
Income |  |  |  |  |  |  |  |  |  |  |  |
statement ECL |  |  |  |  |  |  |  |  |  |  |  |
(charge)/release |  | 8 |  |  | 89 |  |  | (89) |  |  | 8 |
Recoveries of |  |  |  |  |  |  |  |  |  |  |  |
amounts |  |  |  |  |  |  |  |  |  |  |  |
previously |  |  |  |  |  |  |  |  |  |  |  |
written off |  | – |  |  | – |  |  | 73 |  |  | 73 |
Total credit |  |  |  |  |  |  |  |  |  |  |  |
impa irment |  |  |  |  |  |  |  |  |  |  |  |
(charge)/release 4 |  | 8 |  |  | 89 |  |  | (16) |  |  | 81 |

Risk Proﬁle continued
Standard Chartered Bank
75
Directors’ Report and Financ
ial Statements 2024
All segments – Company (audited) continued

| Stage 1 | Stage 2 | Stage 3 5 | Total
| Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |  | Gross | Total credit |
Amortised cost and | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net | balance 6 | impa irment | Net
FVOCI | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at |  |  |  |  |  |  |  |  |  |  |  |
1 January 2024 | 284,671 | (132) 284,539 | 10,316 | (107) | 10,209 | 4,357 | (2,276) | 2,081 299,344 | (2,515) 296,829
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 1 | 7,448 | (173) | 7,275 | (7,445) | 173 | (7,272) | (3) | – | (3) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 2 | (14,259) | 35 | (14,224) | 14,573 | (52) | 14,521 | (314) | 17 | (297) | – | – | –
Transfers to |  |  |  |  |  |  |  |  |  |  |  |
stage 3 | (187) | (4) | (191) | (270) | 48 | (222) | 457 | (44) | 413 | – | – | –
Net change |  |  |  |  |  |  |  |  |  |  |  |
in exposures | 29,361 | (64) | 29,297 | (7,981) | (2) | (7,983) | (822) | 398 | (424) | 20,558 | 332 | 20,890
Net |  |  |  |  |  |  |  |  |  |  |  |
remeasurement |  |  |  |  |  |  |  |  |  |  |  |
from stage |  |  |  |  |  |  |  |  |  |  |  |
changes | – | 7 | 7 | – | (21) | (21) | – | (19) | (19) | – | (33) | (33)
Changes in risk |  |  |  |  |  |  |  |  |  |  |  |
parameters | – | 31 | 31 | – | 29 | 29 | – | (304) | (304) | – | (244) | (244)
Write-offs | – | – | – | – | – | – | (422) | 422 | – | (422) | 422 | –
Interest due |  |  |  |  |  |  |  |  |  |  |  |
but unpaid | – | – | – | – | – | – | (145) | 145 | – | (145) | 145 | –
Discount unwind | – | – | – | – | – | – | – | 51 | 51 | – | 51 | 51
Exchange |  |  |  |  |  |  |  |  |  |  |  |
translation |  |  |  |  |  |  |  |  |  |  |  |
differences and |  |  |  |  |  |  |  |  |  |  |  |
other movements¹ | (7,116) | 143 | (6,973) | (901) | (191) | (1,092) | 24 | (72) | (48) | (7,993) | (120) | (8,113)
As at 31 |  |  |  |  |  |  |  |  |  |  |  |
December 2024² | 299,918 | (157) 299,761 | 8,292 | (123) | 8,169 | 3,132 | (1,682) | 1,450 | 311,342 | (1,962) 309,380
Income |  |  |  |  |  |  |  |  |  |  |  |
statement ECL |  |  |  |  |  |  |  |  |  |  |  |
(charge)/release 3 |  | (26) |  |  | 6 |  |  | 75 |  |  | 55 |
Recoveries of |  |  |  |  |  |  |  |  |  |  |  |
amounts |  |  |  |  |  |  |  |  |  |  |  |
previously |  |  |  |  |  |  |  |  |  |  |  |
written off |  | – |  |  | – |  |  | 60 |  |  | 60 |
Total credit |  |  |  |  |  |  |  |  |  |  |  |
impa irment |  |  |  |  |  |  |  |  |  |  |  |
(charge)/release 4 |  | (26) |  |  | 6 |  |  | 135 |  |  | 115 |

1
Includes fair value adjustments and amortisat
ion on debt secur
it
ies
2
Excludes Cash and balances at central banks, Accrued income, Assets held for sale and Other assets gross balance of $64,555 mill
ion (31 December 2023: $70,951
mill
ion) and total cred
it impa
irment of $5 m
ill
ion(31 December 2023: $N
il mill
ion)
3
Does not include charge relating to Other assets of $2 mill
ion (31 December 2023: N
il)
4 Reported basis
5
Stage 3 gross includes Nil mill
ion (31 December 2023: $25 m
ill
ion) and ECL N
il mill
ion (31 December 2023: $14 m
ill
ion) or
ig
inated cred
it-impa
ired debt secur
it
ies
6
The gross balance includes the notional amount of off balance sheet instruments
Risk Proﬁle continued
Standard Chartered Bank
76
Directors’ Report and Financ
ial Statements 2024
Credit impa
irment charge (aud
ited)
The table below analyses credit impa
irment charges or releases of the ongo
ing business portfolio and restructuring business
portfolio for the year ended 31 December 2024.
> Further details can be found in the ‘
Summary of Credit Risk Performance
’ section in page 59.

| 2024 | 2023
| Stage 1 & 2 | Stage 3 | Total | Stage 1 & 2 | Stage 3 | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Ongoing business portfolio |  |  |  |  |  |
Corporate & Investment Banking | 31 | (293) | (262) | 5 | (168) | (163)
Wealth & Retail Banking | 171 | 115 | 286 | 50 | 79 | 129
Ventures | 13 | 12 | 25 | 7 | 6 | 13
Central & other items | (16) | (18) | (34) | (39) | 2 | (37)
Total credit impa irment charge/(release) | 199 | (184) | 15 | 23 | (81) | (58)

Problem credit management and provis
ion
ing (audited)
Forborne and other modif
ied loans by cl
ient 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 d
iff
icult
ies.
Net forborne loans decreased by $67 mill
ion to $503 m
ill
ion (31 December 2023: $570 m
ill
ion) largely due to repayments.
Net non-performing forborne loans decreased by $78 mill
ion to $461 m
ill
ion (31 December 2023: $539 m
ill
ion) ma
inly in CIB.
This was partly offset by an increase of $11 mill
ion
in performing forborne loans.
The table below presents loans with forbearance measures by segment.
Group

| 2024 | 2023
| Corporate, & | Wealth & |  |  | Corporate, & | Wealth & |  |
| Investment | Retail |  |  | Investment | Retail |  |
| Banking | Banking | Ventures | Total | Banking | Banking | Ventures | Total
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Gross Stage 1 and 2 forborne loans | 17 | 26 | – | 43 | – | 33 | – | 33
Modif icat ion of terms and condit ions 1 | 17 | 26 | – | 43 | – | 33 | – | 33
Impairment provis ions | – | (1) | – | (1) | – | (2) | – | (2)
Modif icat ion of terms and condit ions 1 | – | (1) | – | (1) | – | (2) | – | (2)
Net stage 1 and 2 forborne loans | 17 | 25 | – | 42 | – | 31 | – | 31
Collateral | – | 25 | – | 25 | – | 31 | – | 31
Gross stage 3 forborne loans | 960 | 148 | – | 1,108 | 1,218 | 161 | – | 1,379
Modif icat ion of terms and condit ions 1 | 959 | 148 | – | 1,107 | 1,210 | 161 | – | 1,371
Reﬁnancing 2 | 1 | – | – | 1 | 8 | – | – | 8
Impairment provis ions | (575) | (72) | – | (647) | (755) | (85) | – | (840)
Modif icat ion of terms and condit ions 1 | (574) | (72) | – | (646) | (747) | (85) | – | (832)
Reﬁnancing 2 | (1) | – | – | (1) | (8) | – | – | (8)
Net stage 3 forborne loans | 385 | 76 | – | 461 | 463 | 76 | – | 539
Collateral | 74 | 53 | – | 127 | 153 | 42 | – | 195
Net Carrying value of forborne loans | 402 | 101 | – | 503 | 463 | 107 | – | 570

1
Modif
icat
ion of terms is any contractual change apart from reﬁnanc
ing, as a result of cred
it stress of the counterparty, i.e. interest reductions, loan covenant waivers
2
Reﬁnancing
is a new contract to a lender in credit stress, such that they are reﬁnanced and can pay other debt contracts that they were unable to honour
Risk Proﬁle continued
Standard Chartered Bank
77
Directors’ Report and Financ
ial Statements 2024
Company

|  | 2024 |  |  | 2023 |
| Corporate, & | Wealth & |  | Corporate, & | Wealth & |
| Investment | Retail |  | Investment | Retail |
| Banking | Banking | Total | Banking | Banking | Total
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Gross stage 1 and 2 forborne loans | – | 15 | 15 | – | 17 | 17
Modif icat ion of terms and condit ions 1 | – | 15 | 15 | – | 17 | 17
Impairment provis ions | – | – | – | – | (1) | (1)
Modif icat ion of terms and condit ions 1 | – | – | – | – | (1) | (1)
Net stage 1 and 2 forborne loans | – | 15 | 15 | – | 16 | 16
Collateral | – | 14 | 14 | – | 18 | 18
Gross stage 3 forborne loans | 701 | 7 | 708 | 904 | 8 | 912
Modif icat ion of terms and condit ions 1 | 701 | 7 | 708 | 897 | 8 | 905
Reﬁnancing 2 | – | – | – | 7 | – | 7
Impairment provis ions | (394) | (3) | (397) | (549) | (3) | (552)
Modif icat ion of terms and condit ions 1 | (394) | (3) | (397) | (542) | (3) | (545)
Reﬁnancing 2 | – | – | – | (7) | – | (7)
Net stage 3 forborne loans | 307 | 4 | 311 | 355 | 5 | 360
Collateral | 62 | 3 | 65 | 124 | 3 | 127
Net carrying value of forborne loans | 307 | 19 | 326 | 355 | 21 | 376

1
Modif
icat
ion of terms is any contractual change apart from reﬁnanc
ing, as a result of cred
it stress of the counterparty, i.e. interest reductions, loan covenant waivers
2
Reﬁnancing
is a new contract to a lender in credit stress, such that they are reﬁnanced and can pay other debt contracts that they were unable to honour
Credit risk mit
igat
ion
Potential credit losses from any given account, customer or portfolio are mit
igated us
ing a range of tools such as collateral,
netting arrangements, credit insurance and credit derivat
ives, tak
ing into account expected volatil
ity and guarantees.
The reliance that can be placed on these mit
igants
is carefully assessed in light of issues such as legal certainty and
enforceabil
ity, market valuat
ion correlation and counterparty risk of the guarantor.
Collateral (audited)
A secured loan is one where the borrower pledges an asset as collateral of which the Group is able to take possession in the
event that the borrower defaults.
The collateral values in the table below (which covers loans and advances to banks and customers, excluding those held
at fair value through proﬁt or loss) are adjusted where appropriate in accordance with our risk mit
igat
ion policy and for the
effect of over-collateralisat
ion. The extent of over-collateral
isat
ion has been determ
ined with reference to both the drawn
and undrawn components of exposure as this best reﬂects the effect of collateral and other credit enhancements on the
amounts aris
ing from expected cred
it losses. We have remained prudent in the way we assess the value of collateral, which
is calibrated for a severe downturn and backtested against our prior experience.
Risk Proﬁle continued
Standard Chartered Bank
78
Directors’ Report and Financ
ial Statements 2024
Collateral held on loans and advances
The table below details collateral held against exposures, separately disclos
ing stage 2 and stage 3 exposure and
corresponding collateral.
Group

| 2024
| Net amount outstanding | Collateral | Net exposure
|  |  | Credit- |  |  | Credit- |  |  | Credit-
|  | Stage 2 | impa ired |  | Stage 2 | impa ired |  | Stage 2 | impa ired
|  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial
| Total | assets | assets (S3) | Total 2 | assets | assets (S3) | Total | assets | assets (S3)
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & |  |  |  |  |  |  |  |  |
Investment Banking 1 | 113,333 | 6,429 | 1,125 | 26,379 | 2,398 | 170 | 86,954 | 4,031 | 955
Wealth & Retail Banking | 47,016 | 946 | 501 | 31,210 | 688 | 412 | 15,806 | 258 | 89
Ventures | 574 | 1 | – | – | – | – | 574 | 1 | –
Central & other items | 20,260 | 35 | 98 | 80 | 35 | – | 20,180 | – | 98
Total 2 | 181,183 | 7,411 | 1,724 | 57,669 | 3,121 | 582 | 123,514 | 4,290 | 1,142

| 2023
| Net amount outstanding | Collateral | Net exposure |
|  |  | Credit- |  |  | Credit- |  |  | Credit-
|  | Stage 2 | impa ired |  | Stage 2 | impa ired |  | Stage 2 | impa ired
|  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial
| Total | assets | assets (S3) | Total 2 | assets | assets (S3) | Total | assets | assets (S3)
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & |  |  |  |  |  |  |  |  |
Investment Banking 1 | 107,336 | 6,091 | 1,593 | 25,744 | 2,043 | 352 | 81,592 | 4,048 | 1,241
Wealth & Retail Banking | 47,615 | 935 | 425 | 29,960 | 619 | 393 | 17,655 | 316 | 32
Ventures | 230 | 2 | – | – | – | – | 230 | 2 | –
Central & other items | 23,765 | 964 | 209 | 2,369 | 964 | – | 21,396 | – | 209
Total 2 | 178,946 | 7,992 | 2,227 | 58,073 | 3,626 | 745 | 120,873 | 4,366 | 1,482

1
Includes loans and advances to banks
2
Adjusted for over-collateralisat
ion based on the drawn and undrawn components of exposures
Company

| 2024
| Net amount outstanding | Collateral | Net exposure
|  |  | Credit- |  |  | Credit- |  |  | Credit-
|  | Stage 2 | impa ired |  | Stage 2 | impa ired |  | Stage 2 | impa ired
|  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial
| Total | assets | assets (S3) | Total 2 | assets | assets (S3) | Total | assets | assets (S3)
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & |  |  |  |  |  |  |  |  |
Investment Banking 1 | 76,759 | 3,927 | 833 | 19,149 | 1,542 | 123 | 57,610 | 2,385 | 710
Wealth & Retail Banking | 11,779 | 192 | 275 | 6,653 | 110 | 244 | 5,126 | 82 | 31
Central & other items | 814 | – | – | – | – | – | 814 | – | –
Total 2 | 89,352 | 4,119 | 1,108 | 25,802 | 1,652 | 367 | 63,550 | 2,467 | 741

| 2023
| Net amount outstanding | Collateral | Net exposure
|  |  | Credit- |  |  | Credit- |  |  | Credit-
|  | Stage 2 | impa ired |  | Stage 2 | impa ired |  | Stage 2 | impa ired
|  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial |  | ﬁnancial | ﬁnancial
| Total | assets | assets (S3) | Total 2 | assets | assets (S3) | Total | assets | assets (S3)
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & |  |  |  |  |  |  |  |  |
Investment Banking 1 | 72,136 | 4,052 | 1,194 | 19,783 | 1,343 | 293 | 52,353 | 2709 | 901
Wealth & Retail Banking | 12,503 | 230 | 231 | 6,401 | 94 | 217 | 6,102 | 136 | 14
Central & other items | 1,379 | – | 209 | 750 | – | – | 629 | 0 | 209
Total 2 | 86,018 | 4,282 | 1,634 | 26,934 | 1,437 | 510 | 59,084 | 2,845 | 1,124

1
Includes loans and advances to banks
2
Adjusted for over-collateralisat
ion based on the drawn and undrawn components of exposures
Risk Proﬁle continued
Standard Chartered Bank
79
Directors’ Report and Financ
ial Statements 2024
Collateral – Corporate & Investment Banking (audited)
Our underwrit
ing standards encourage tak
ing specif
ic charges on assets and we cons
istently seek high-quality,
investment-grade collateral.
88 per cent (31 December 2023: 82 per cent) of tangible collateral excluding reverse repurchase agreements and ﬁnanc
ial
guarantees held comprises physical assets or is property based, with the remainder held in cash. Overall collateral increased
by $0.7 bill
ion to $26.4 b
ill
ion (31 December 2023: $25.7 b
ill
ion).
Non-tangible collateral, such as guarantees and standby letters of credit, is also held against corporate exposures,
although the ﬁnancial effect of th
is type of collateral is less sign
iﬁcant
in terms of recoveries. However, this is considered
when determin
ing the probab
il
ity of default and other cred
it-related factors. Collateral is also held against off balance sheet
exposures, includ
ing undrawn comm
itments and trade-related instruments.
The following table provides an analysis of the types of collateral held against CIB loan exposures.
Group
Corporate & Investment Banking

| 2024 | 2023
Amortised cost | $mill ion | $mill ion
Maximum exposure | 113,333 | 107,336
Property | 3,459 | 3,486
Plant, machinery and other stock | 904 | 896
Cash | 1,031 | 1,497
Reverse repos | 11,972 | 13,127
AA- to AA+ | 897 | 395
A- to A+ | 8,225 | 10,548
BBB- to BBB+ | 981 | 855
Lower than BBB- | 95 | 169
Unrated | 1,774 | 1,160
Financ ial guarantees and insurance | 5,564 | 4,169
Commodit ies | 33 | 5
Ships and aircraft | 3,416 | 2,564
Total value of collateral 1 | 26,379 | 25,744
Net exposure | 86,954 | 81,592

Company
Corporate & Investment Banking

| 2024 | 2023
Amortised cost | $mill ion | $mill ion
Maximum exposure | 76,759 | 72,136
Property | 1,752 | 2,186
Plant, machinery and other stock | 636 | 602
Cash | 835 | 953
Reverse repos | 10,464 | 12,016
AA- to AA+ | 742 | 395
A- to A+ | 8,225 | 10,548
BBB- to BBB+ | 564 | 21
Unrated | 933 | 1,052
Financ ial guarantees and insurance | 4,187 | 2,916
Commodit ies | 8 | 2
Ships and aircraft | 1,267 | 1,108
Total value of collateral 1 | 19,149 | 19,783
Net exposure | 57,610 | 52,353

1
Adjusted for over-collateralisat
ion based on the drawn and undrawn components of exposures
Risk Proﬁle continued
Standard Chartered Bank
80
Directors’ Report and Financ
ial Statements 2024
Group
Collateral – Wealth & Retail Banking (audited)
In WRB, fully secured products increased by 1 per cent to 86 per cent of the total portfolio (31 December 2023: 85 per cent).
The following table presents an analysis of loans to ind
iv
iduals by product; split between fully secured, partially secured
and unsecured:

| 2024 | 2023
| Fully | Partially |  |  | Fully | Partially |  |
| secured 1 | secured 1 | Unsecured | Total 2 | secured 1 | secured 1 | Unsecured | Total 2
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Maximum exposure | 40,229 | 226 | 6,561 | 47,016 | 40,483 | 198 | 6,934 | 47,615
Loans to ind iv iduals |  |  |  |  |  |  |  |
Mortgages | 23,001 | – | – | 23,001 | 24,750 | – | – | 24,750
CCPL | 463 | – | 5,930 | 6,393 | 370 | – | 6,334 | 6,704
Auto | 160 | – | – | 160 | 312 | – | – | 312
Secured wealth products | 16,595 | – | – | 16,595 | 15,009 | – | – | 15,009
Other | 10 | 226 | 631 | 867 | 42 | 198 | 600 | 840
Total collateral 2 |  |  |  | 31,210 |  |  |  | 29,960
Net exposure 3 |  |  |  | 15,806 |  |  |  | 17,655
Percentage of total loans | 86% | 0% | 14% |  | 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 orig
inat
ion. All other secured loans are considered to be
partly secured
2
Collateral values are adjusted where appropriate in accordance with our risk mit
igat
ion policy and for the effect of over-collateralisat
ion
3
Amounts net of ECL
Company
Collateral - Wealth & Retail Banking (audited)
In WRB, $9.4 bill
ion wh
ich equates to 80 per cent of the portfolio is fully secured (31 December 2023: 76 per cent).
The following table presents an analysis of loans to ind
iv
iduals by product; split between fully secured, partially secured
and unsecured:

| 2024 | 2023
| Fully | Partially |  |  | Fully | Partially |  |
| secured 1 | secured 1 | Unsecured | Total 2 | secured 1 | secured 1 | Unsecured | Total 2
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Maximum exposure | 9,375 | 167 | 2,237 | 11,779 | 9,531 | 156 | 2,816 | 12,503
Loans to ind iv iduals |  |  |  |  |  |  |  |
Mortgages | 5,030 | – | – | 5,030 | 5,345 | – | – | 5,345
CCPL | 464 | – | 1,890 | 2,354 | 369 | – | 2,460 | 2,829
Auto | 7 | – | – | 7 | 15 | – | – | 15
Secured wealth products | 3,860 | – | – | 3,860 | 3,786 | – | – | 3,786
Other | 14 | 167 | 347 | 528 | 16 | 156 | 356 | 528
Total collateral 2 |  |  |  | 6,653 |  |  |  | 6,401
Net exposure 3 |  |  |  | 5,126 |  |  |  | 6,102
Percentage of total loans | 80% | 1% | 19% |  | 76% | 1% | 23% |

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 orig
inat
ion. All other secured loans are considered to be
partly secured
2
Collateral values are adjusted where appropriate in accordance with our risk mit
igat
ion policy and for the effect of over-collateralisat
ion
3
Amounts net of ECL
Risk Proﬁle continued
Standard Chartered Bank
81
Directors’ Report and Financ
ial Statements 2024
Mortgage loan-to-value ratios by geography (audited)
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.
In mortgages, the value of property held as security sign
iﬁcantly exceeds the value of mortgage loans. The average LTV
of the overall mortgage portfolio is low at 45.1 per cent (31 December 2023: 45.8 per cent). Singapore, which represents
56 per cent of the mortgage portfolio as at 31 December 2023, has an average LTV of 42.5 per cent (31 December 2023:
43.4 per cent).
An analysis of LTV ratios by geography for the mortgage portfolio is presented in the table below.

| 2024 | 2023 1
| Singapore | Malaysia | Jersey | Others | Total | Singapore | Malaysia | Jersey | Others | Total
Amortised cost | % | % | % | % | % | % | % | % | % | %
Less than 50 per cent | 52.7 | 37.4 | 28.2 | 62.8 | 51.0 | 50.9 | 41.1 | 31.0 | 57.4 | 49.6
50 per cent to 59 per cent | 21.8 | 15.2 | 14.9 | 16.5 | 19.2 | 24.7 | 14.1 | 17.4 | 17.9 | 21.4
60 per cent to 69 per cent | 15.6 | 18.1 | 33.7 | 12.4 | 16.7 | 15.2 | 15.4 | 33.9 | 13.8 | 16.4
70 per cent to 79 per cent | 9.6 | 16.2 | 17.6 | 6.4 | 10.4 | 8.7 | 16.2 | 14.4 | 7.9 | 9.8
80 per cent to 89 per cent | 0.1 | 11.6 | 3.9 | 1.2 | 2.2 | 0.5 | 11.8 | 2.5 | 1.5 | 2.2
90 per cent to 99 per cent | 0.0 | 0.9 | 1.7 | 0.5 | 0.4 | 0.0 | 0.8 | 0.6 | 0.7 | 0.3
100 per cent and greater | 0.1 | 0.6 | 0.1 | 0.3 | 0.2 | 0.0 | 0.6 | 0.3 | 0.8 | 0.3
Average portfolio |  |  |  |  |  |  |  |  |  |
loan-to-value | 42.5 | 55.4 | 58.8 | 42.2 | 45.1 | 43.4 | 54.2 | 56.0 | 45.4 | 45.8
Loans to ind iv iduals – |  |  |  |  |  |  |  |  |  |
mortgages ($mill ion) | 13,756 | 3,332 | 2,142 | 3,771 | 23,001 | 15,292 | 3,199 | 2,218 | 4,041 | 24,750

1
Amounts have been re-presented from a regional basis (Asia; Africa & Middle East; and Europe & Americas) to key geographies covering the major
ity of the reported
balances.
Collateral and other credit enhancements possessed or called upon (audited)
The Group obtains assets by taking possession of collateral 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 securit
ies acqu
ired may be held by the Group for investment purposes and are classif
ied as fa
ir value
through proﬁt or loss, and the related loan written off. The carrying value of collateral possessed and held by the Group
as at 31 December 2024 is $23.7 mill
ion (31 December 2023: $16.5 m
ill
ion).

| 2024 | 2023
| $mill ion | $mill ion
Property, plant and equipment | 6.1 | 10.5
Guarantees | 4.7 | 6.0
Other | 12.9 | –
Total | 23.7 | 16.5

Other Credit Risk mit
igat
ion
Other forms of Credit Risk mit
igat
ion 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 $2.8 bill
ion (31 December 2023: $3.5 b
ill
ion). These cred
it default swaps are accounted for as ﬁnanc
ial 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 and
Foreign Exchange 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
$18.6 bill
ion (31 December 2023: $22.5 b
ill
ion). The Group cont
inues to hold the underlying assets for which the credit linked
notes provide mit
igat
ion. The credit linked notes are recognised as a ﬁnanc
ial l
iab
il
ity at amortised cost on the balance sheet
and are adjusted, where appropriate, for reductions in expected future cash ﬂows with a corresponding credit to credit
impa
irment
in the income statement.
Risk Proﬁle continued
Standard Chartered Bank
82
Directors’ Report and Financ
ial Statements 2024
Derivat
ive ﬁnancial
instruments
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 posit
ive and negat
ive mark-to-market values of applicable derivat
ive
transactions. These are also set out under the Derivat
ive ﬁnancial
instruments Credit Risk mit
igat
ion section (page 77).
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 maturity analysis of loans and advances by business segment.
Contractual maturity analysis of loans and advances by client segment (audited)
Loans and advances to the CIB segment remain predominantly short-term, with $58 bill
ion (31 December 2023: $56 b
ill
ion)
maturing in less than one year. 88 per cent (31 December 2023: 97 per cent) of loans to banks mature in less than one year.
Shorter maturit
ies g
ive us the ﬂexib
il
ity to respond promptly to events and rebalance or reduce our exposure to clients or
sectors that are facing increased pressure or uncertainty. The WRB loan book continues to be longer-term in nature with
47 per cent (31 December 2023: 49 per cent) of the loans maturing over ﬁve years, as mortgages constitute the major
ity of
this portfolio.
Group

| 2024 | 2023
| One year or | One to ﬁve | Over ﬁve |  | One year or | One to ﬁve | Over ﬁve |
| less | years | years | Total | less | years | years | Total
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & Investment Banking | 58,427 | 20,537 | 13,461 | 92,425 | 55,898 | 21,194 | 10,004 | 87,096
Wealth & Retail Banking | 20,579 | 4,748 | 22,534 | 47,861 | 20,078 | 4,767 | 23,591 | 48,436
Ventures | 391 | 204 | – | 595 | 198 | 41 | – | 239
Central & other items | 20,259 | – | 1 | 20,260 | 23,725 | 56 | – | 23,781
Gross loans and advances |  |  |  |  |  |  |  |
to customers | 99,656 | 25,489 | 35,996 | 161,141 | 99,899 | 26,058 | 33,595 | 159,552
Impairment provis ions | (2,652) | (172) | (75) | (2,899) | (3,245) | (101) | (63) | (3,409)
Net loans and advances to customers | 97,004 | 25,317 | 35,921 | 158,242 | 96,654 | 25,957 | 33,532 | 156,143
Net loans and advances to banks | 20,285 | 2,376 | 280 | 22,941 | 22,029 | 773 | 1 | 22,803

Company

| 2024 | 2023
| One year or | One to ﬁve | Over ﬁve |  | One year or | One to ﬁve | Over ﬁve |
| less | years | years | Total | less | years | years | Total 1
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & Investment Banking | 44,859 | 12,646 | 8,790 | 66,295 | 42,803 | 13,828 | 7,172 | 63,803
Wealth & Retail Banking | 5,831 | 2,278 | 4,174 | 12,283 | 5,692 | 2,762 | 4,530 | 12,984
Ventures | – | – | – | – | – | – | – | –
Central & other items | 813 | – | 1 | 814 | 1,349 | 45 | – | 1,394
Gross loans and advances |  |  |  |  |  |  |  |
to customers | 51,503 | 14,924 | 12,965 | 79,392 | 49,844 | 16,635 | 11,702 | 78,181
Impairment provis ions | (1,683) | (75) | (37) | (1,795) | (2,202) | (54) | (42) | (2,298)
Net loans and advances to customers | 49,820 | 14,849 | 12,928 | 77,597 | 47,642 | 16,581 | 11,660 | 75,883
Net loans and advances to banks | 10,162 | 1,313 | 280 | 11,755 | 9,439 | 695 | 1 | 10,135

1
Excludes 'Amounts due from subsid
iary undertak
ings and other related parties' of $10,066 mill
ion (31 December 2023: $10,053 m
ill
ion). The amounts are held w
ith
in
stage 1 and rated as 'strong' and is net of an expected credit loss of $2.4 mill
ion (31 December 2023: $20.4 m
ill
ion)
Risk Proﬁle continued
Standard Chartered Bank
83
Directors’ Report and Financ
ial Statements 2024
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 impa
irment and
net basis.
Group

| 2024
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Industry: |  |  |  |  |  |  |  |  |  |  |  |
Energy | 10,695 | (11) 10,684 | 449 | (33) | 416 | 859 | (551) | 308 | 12,003 | (595) | 11,408
Manufacturing | 9,610 | (9) | 9,601 | 509 | (10) | 499 | 390 | (278) | 112 | 10,509 | (297) | 10,212
Financ ing, insurance |  |  |  |  |  |  |  |  |  |  |  |
and non-banking | 26,699 | (12) 26,687 | 804 | (1) | 803 | 86 | (74) | 12 | 27,589 | (87) 27,502
Transport, telecom |  |  |  |  |  |  |  |  |  |  |  |
and util it ies | 9,542 | (9) | 9,533 | 1,962 | (26) | 1,936 | 330 | (85) | 245 | 11,834 | (120) | 11,714
Food and |  |  |  |  |  |  |  |  |  |  |  |
household products | 6,484 | (8) | 6,476 | 267 | (8) | 259 | 236 | (184) | 52 | 6,987 | (200) | 6,787
Commercial real estate | 5,394 | (7) | 5,387 | 879 | (9) | 870 | 120 | (82) | 38 | 6,393 | (98) | 6,295
Min ing and quarry ing | 3,757 | (3) | 3,754 | 251 | (12) | 239 | 124 | (56) | 68 | 4,132 | (71) | 4,061
Consumer durables | 2,699 | (6) | 2,693 | 187 | (16) | 171 | 245 | (229) | 16 | 3,131 | (251) | 2,880
Construction | 1,181 | (1) | 1,180 | 478 | (5) | 473 | 171 | (160) | 11 | 1,830 | (166) | 1,664
Trading companies |  |  |  |  |  |  |  |  |  |  |  |
& distr ibutors | 364 | – | 364 | 2 | – | 2 | 82 | (44) | 38 | 448 | (44) | 404
Government | 24,374 | – | 24,374 | 428 | (12) | 416 | 193 | (18) | 175 | 24,995 | (30) 24,965
Other | 2,624 | (2) | 2,622 | 72 | (4) | 68 | 139 | (68) | 71 | 2,835 | (74) | 2,761
Total | 103,423 | (68) 103,355 | 6,288 | (136) | 6,152 | 2,975 | (1,829) | 1,146 | 112,686 | (2,033) 110,653
Retail Products: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage | 22,266 | (7) 22,259 | 436 | (2) | 434 | 431 | (123) | 308 | 23,133 | (132) 23,001
Credit Cards | 3,665 | (70) | 3,595 | 95 | (37) | 58 | 49 | (44) | 5 | 3,809 | (151) | 3,658
Personal loans |  |  |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |  |  |
unsecured lending | 3,280 | (82) | 3,198 | 69 | (13) | 56 | 118 | (64) | 54 | 3,467 | (159) | 3,308
Auto | 159 | – | 159 | 1 | – | 1 | – | – | – | 160 | – | 160
Secured wealth |  |  |  |  |  |  |  |  |  |  |  |
products | 16,110 | (24) 16,086 | 387 | (5) | 382 | 460 | (334) | 126 | 16,957 | (363) | 16,594
Other | 848 | (3) | 845 | 16 | – | 16 | 65 | (58) | 7 | 929 | (61) | 868
Total | 46,328 | (186) | 46,142 | 1,004 | (57) | 947 | 1,123 | (623) | 500 | 48,455 | (866) 47,589
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (customers)¹ | 149,751 | (254)149,497 | 7,292 | (193) | 7,099 | 4,098 | (2,452) | 1,646 | 161,141 | (2,899) 158,242
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (banks)¹ | 22,556 | (5) | 22,551 | 313 | (1) | 312 | 80 | (2) | 78 | 22,949 | (8) | 22,941

1
Includes reverse repurchase agreements and other sim
ilar secured lend
ing held at amortised cost of $9,121 mill
ion for Customers and $2,889 m
ill
ion for Banks
Risk Proﬁle continued
Standard Chartered Bank
84
Directors’ Report and Financ
ial Statements 2024

| 2023
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Industry: |  |  |  |  |  |  |  |  |  |  |  |
Energy | 8,064 | (9) | 8,055 | 648 | (22) | 626 | 933 | (527) | 406 | 9,645 | (558) | 9,087
Manufacturing | 10,639 | (6) | 10,633 | 491 | (13) | 478 | 541 | (329) | 212 | 11,671 | (348) | 11,323
Financ ing, insurance |  |  |  |  |  |  |  |  |  |  |  |
and non-banking | 24,376 | (10) | 24,366 | 169 | (1) | 168 | 79 | (76) | 3 | 24,624 | (87) 24,537
Transport, telecom |  |  |  |  |  |  |  |  |  |  |  |
and util it ies | 8,846 | (6) | 8,840 | 1,583 | (32) | 1,551 | 481 | (178) | 303 | 10,910 | (216) | 10,694
Food and |  |  |  |  |  |  |  |  |  |  |  |
household products | 5,853 | (15) | 5,838 | 323 | (7) | 316 | 354 | (261) | 93 | 6,530 | (283) | 6,247
Commercial real estate | 5,917 | (9) | 5,908 | 705 | (13) | 692 | 282 | (170) | 112 | 6,904 | (192) | 6,712
Min ing and quarry ing | 3,795 | (3) | 3,792 | 132 | (10) | 122 | 147 | (81) | 66 | 4,074 | (94) | 3,980
Consumer durables | 2,363 | (2) | 2,361 | 221 | (20) | 201 | 290 | (271) | 19 | 2,874 | (293) | 2,581
Construction | 1,520 | (1) | 1,519 | 480 | (8) | 472 | 358 | (326) | 32 | 2,358 | (335) | 2,023
Trading companies |  |  |  |  |  |  |  |  |  |  |  |
& distr ibutors | 355 | – | 355 | 10 | – | 10 | 102 | (55) | 47 | 467 | (55) | 412
Government | 26,209 | (4) | 26,205 | 1,768 | (5) | 1,763 | 357 | (33) | 324 | 28,334 | (42) 28,292
Other | 2,168 | (3) | 2,165 | 131 | (3) | 128 | 187 | (70) | 117 | 2,486 | (76) | 2,410
Total | 100,105 | (68) 100,037 | 6,661 | (134) | 6,527 | 4,111 | (2,377) | 1,734 | 110,877 | (2,579)108,298
Retail Products: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage | 24,008 | (7) | 24,001 | 509 | (3) | 506 | 353 | (110) | 243 | 24,870 | (120) 24,750
Credit Cards | 3,310 | (57) | 3,253 | 120 | (25) | 95 | 42 | (29) | 13 | 3,472 | (111) | 3,361
Personal loans |  |  |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |  |  |
unsecured lending | 3,500 | (48) | 3,452 | 65 | (19) | 46 | 180 | (105) | 75 | 3,745 | (172) | 3,573
Auto | 310 | – | 310 | 1 | – | 1 | 1 | – | 1 | 312 | – | 312
Secured wealth |  |  |  |  |  |  |  |  |  |  |  |
products | 14,663 | (14) | 14,649 | 258 | (8) | 250 | 435 | (325) | 110 | 15,356 | (347) 15,009
Other | 822 | (4) | 818 | 43 | (4) | 39 | 55 | (72) | (17) | 920 | (80) | 840
Total | 46,613 | (130) | 46,483 | 996 | (59) | 937 | 1,066 | (641) | 425 | 48,675 | (830) 47,845
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (customers)¹ | 146,718 | (198) 146,520 | 7,657 | (193) | 7,464 | 5,177 | (3,018) | 2,159 159,552 | (3,409) 156,143
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (Banks)¹ | 22,210 | (3) | 22,207 | 537 | (9) | 528 | 74 | (6) | 68 | 22,821 | (18) 22,803

1
Includes reverse repurchase agreements and other sim
ilar secured lend
ing held at amortised cost of $13,827 mill
ion for Customers and $1,653 m
ill
ion for Banks
Risk Proﬁle continued
Standard Chartered Bank
85
Directors’ Report and Financ
ial Statements 2024
Company

| 2024
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Industry: |  |  |  |  |  |  |  |  |  |  |  |
Energy | 7,345 | (5) | 7,340 | 342 | (10) | 332 | 564 | (266) | 298 | 8,251 | (281) | 7,970
Manufacturing | 6,415 | (7) | 6,408 | 330 | (4) | 326 | 312 | (234) | 78 | 7,057 | (245) | 6,812
Financ ing, insurance |  |  |  |  |  |  |  |  |  |  |  |
and non-banking | 23,812 | (9) 23,803 | 413 | (1) | 412 | 24 | (22) | 2 | 24,249 | (32) | 24,217
Transport, telecom |  |  |  |  |  |  |  |  |  |  |  |
and util it ies | 5,256 | (6) | 5,250 | 1,485 | (22) | 1,463 | 267 | (62) | 205 | 7,008 | (90) | 6,918
Food and |  |  |  |  |  |  |  |  |  |  |  |
household products | 3,743 | (4) | 3,739 | 106 | (5) | 101 | 83 | (59) | 24 | 3,932 | (68) | 3,864
Commercial real estate | 3,655 | (7) | 3,648 | 443 | (8) | 435 | 115 | (79) | 36 | 4,213 | (94) | 4,119
Min ing and quarry ing | 2,795 | (2) | 2,793 | 56 | (8) | 48 | 51 | (48) | 3 | 2,902 | (58) | 2,844
Consumer durables | 1,796 | (6) | 1,790 | 83 | (9) | 74 | 225 | (209) | 16 | 2,104 | (224) | 1,880
Construction | 878 | (1) | 877 | 127 | – | 127 | 105 | (96) | 9 | 1,110 | (97) | 1,013
Trading companies |  |  |  |  |  |  |  |  |  |  |  |
& distr ibutors | 227 | – | 227 | 2 | – | 2 | 54 | (23) | 31 | 283 | (23) | 260
Government | 3,874 | – | 3,874 | 378 | (3) | 375 | 94 | (18) | 76 | 4,346 | (21) | 4,325
Other | 1,521 | (1) | 1,520 | 22 | (2) | 20 | 111 | (59) | 52 | 1,654 | (62) | 1,592
Total | 61,317 | (48) | 61,269 | 3,787 | (72) | 3,715 | 2,005 | (1,175) | 830 | 67,109 | (1,295) | 65,814
Retail Products: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage | 4,805 | (5) | 4,800 | 69 | (1) | 68 | 243 | (81) | 162 | 5,117 | (87) | 5,030
Credit Cards | 599 | (12) | 587 | 35 | (16) | 19 | 18 | (10) | 8 | 652 | (38) | 614
Personal loans |  |  |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |  |  |
unsecured lending | 1,744 | (44) | 1,700 | 34 | (8) | 26 | 26 | (11) | 15 | 1,804 | (63) | 1,741
Auto | 7 | – | 7 | – | – | – | – | – | – | 7 | – | 7
Secured wealth |  |  |  |  |  |  |  |  |  |  |  |
products | 3,708 | (6) | 3,702 | 79 | (2) | 77 | 367 | (285) | 82 | 4,154 | (293) | 3,861
Other | 517 | (1) | 516 | 6 | – | 6 | 26 | (18) | 8 | 549 | (19) | 530
Total | 11,380 | (68) | 11,312 | 223 | (27) | 196 | 680 | (405) | 275 | 12,283 | (500) | 11,783
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (customers)¹ | 72,697 | (116) | 72,581 | 4,010 | (99) | 3,911 | 2,685 | (1,580) | 1,105 | 79,392 | (1,795) 77,597
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (banks)¹ | 11,545 | (1) | 11,544 | 209 | (1) | 208 | 3 | – | 3 | 11,757 | (2) | 11,755

1
Includes reverse repurchase agreements and other sim
ilar secured lend
ing held at amortised cost of $9,041 mill
ion for Customers and $1,423 m
ill
ion for Banks
Risk Proﬁle continued
Standard Chartered Bank
86
Directors’ Report and Financ
ial Statements 2024

| 2023
| Stage 1 | Stage 2 | Stage 3 | Total
|  |  | Net |  |  | Net |  |  | Net |  |  | Net
| Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying | Gross | Total credit | carrying
| balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount | balance | impa irment | amount
Amortised cost | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Industry: |  |  |  |  |  |  |  |  |  |  |  |
Energy | 5,560 | (4) | 5,556 | 475 | (3) | 472 | 648 | (276) | 372 | 6,683 | (283) | 6,400
Manufacturing | 6,907 | (3) | 6,904 | 275 | (4) | 271 | 426 | (283) | 143 | 7,608 | (290) | 7,318
Financ ing, insurance |  |  |  |  |  |  |  |  |  |  |  |
and non-banking | 21,533 | (4) | 21,529 | 85 | (1) | 84 | 29 | (26) | 3 | 21,647 | (31) | 21,616
Transport, telecom |  |  |  |  |  |  |  |  |  |  |  |
and util it ies | 4,915 | (4) | 4,911 | 1,288 | (18) | 1,270 | 367 | (110) | 257 | 6,570 | (132) | 6,438
Food and |  |  |  |  |  |  |  |  |  |  |  |
household products | 3,640 | (3) | 3,637 | 58 | (1) | 57 | 190 | (149) | 41 | 3,888 | (153) | 3,735
Commercial real estate | 4,560 | (7) | 4,553 | 288 | (1) | 287 | 257 | (165) | 92 | 5,105 | (173) | 4,932
Min ing and quarry ing | 2,968 | (1) | 2,967 | 76 | (7) | 69 | 77 | (73) | 4 | 3,121 | (81) | 3,040
Consumer durables | 1,811 | (2) | 1,809 | 95 | (7) | 88 | 260 | (244) | 16 | 2,166 | (253) | 1,913
Construction | 1,127 | (1) | 1,126 | 305 | (5) | 300 | 293 | (269) | 24 | 1,725 | (275) | 1,450
Trading companies |  |  |  |  |  |  |  |  |  |  |  |
& distr ibutors | 163 | – | 163 | 7 | – | 7 | 78 | (38) | 40 | 248 | (38) | 210
Government | 3,688 | (4) | 3,684 | 794 | (3) | 791 | 357 | (33) | 324 | 4,839 | (40) | 4,799
Other | 1,375 | (2) | 1,373 | 73 | (2) | 71 | 149 | (64) | 85 | 1,597 | (68) | 1,529
Total | 58,247 | (35) | 58,212 | 3,819 | (52) | 3,767 | 3,131 | (1,730) | 1,401 | 65,197 | (1,817) 63,380
Retail Products: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage | 5,160 | (4) | 5,156 | 72 | (1) | 71 | 191 | (73) | 118 | 5,423 | (78) | 5,345
Credit Cards | 634 | (14) | 620 | 62 | (11) | 51 | 11 | (8) | 3 | 707 | (33) | 674
Personal loans |  |  |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |  |  |
unsecured lending | 2,125 | (26) | 2,099 | 41 | (11) | 30 | 38 | (12) | 26 | 2,204 | (49) | 2,155
Auto | 15 | – | 15 | – | – | – | – | – | – | 15 | – | 15
Secured wealth |  |  |  |  |  |  |  |  |  |  |  |
products | 3,649 | (7) | 3,642 | 70 | (3) | 67 | 368 | (291) | 77 | 4,087 | (301) | 3,786
Other | 513 | (3) | 510 | 13 | (2) | 11 | 22 | (15) | 7 | 548 | (20) | 528
Total | 12,096 | (54) | 12,042 | 258 | (28) | 230 | 630 | (399) | 231 | 12,984 | (481) | 12,503
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (customers)¹ | 70,343 | (89) 70,254 | 4,077 | (80) | 3,997 | 3,761 | (2,129) | 1,632 | 78,181 | (2,298) 75,883
Net carrying |  |  |  |  |  |  |  |  |  |  |  |
value (banks)¹ | 9,849 | (1) | 9,848 | 286 | (1) | 285 | 6 | (4) | 2 | 10,141 | (6) | 10,135

1
Includes reverse repurchase agreements and other sim
ilar secured lend
ing held at amortised cost of $12,212 mill
ion for Customers and $554 m
ill
ion for Banks
Risk Proﬁle continued
Standard Chartered Bank
87
Directors’ Report and Financ
ial Statements 2024
Debt securit
ies and other el
ig
ible b
ills (audited)
This section provides further detail on gross debt securit
ies and treasury b
ills.
The standard credit ratings used by the Group are those used by Standard & Poor’s or its equivalent. Debt securit
ies held that
have a short-term rating are reported against the long-term rating of the issuer. For securit
ies that are unrated, the Group
applies an internal credit rating, as described under the credit rating and measurement section on page 51. Total gross debt
securit
ies and other el
ig
ible b
ills decreased by $5.9 bill
ion to $96 b
ill
ion (31 December 2023: $102 b
ill
ion) due to matur
ity
of exposures in stage 1.
Stage 1 gross balance decreased by $5.6 bill
ion to $94 b
ill
ion (31 December 2023: $100 b
ill
ion) due to matur
ity of exposures
in United Kingdom and United States.
Stage 2 gross balance decreased by $0.3 bill
ion to $1.6 b
ill
ion (31 December 2023: $1.9 b
ill
ion).
Stage 3 gross balance decreased by $0.1 bill
ion to $0.1 b
ill
ion (31 December 2023: $0.2 b
ill
ion) due to exposure reduct
ions
and disposals during the year.
Group

| 2024 | 2023
| Gross | ECL | Net 2 | Gross | ECL | Net 2
Amortised cost and FVOCI | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Stage 1 | 94,480 | (20) | 94,460 | 100,092 | (26) | 100,066
Strong | 90,971 | (16) | 90,955 | 97,346 | (23) | 97,323
Satisfactory | 3,509 | (4) | 3,505 | 2,746 | (3) | 2,743
Stage 2 | 1,612 | (3) | 1,609 | 1,861 | (34) | 1,827
Strong | 560 | – | 560 | 918 | (7) | 911
Satisfactory | 31 | – | 31 | 50 | (1) | 49
High Risk | 1,021 | (3) | 1,018 | 893 | (26) | 867
Stage 3 | 103 | (2) | 101 | 165 | (61) | 104
Gross balance¹ | 96,195 | (25) | 96,170 | 102,118 | (121) | 101,997

1
Stage 3 gross includes $59 mill
ion (2023: $80 m
ill
ion) or
ig
inated cred
it-impa
ired debt secur
it
ies w
ith Nil impa
irment (2023: $14 m
ill
ion)
2
FVOCI instrument are not presented net of ECL. While the presentation is on a net basis for the table, the total net on-balance sheet amount is $96,179 mill
ion
(31 December 2023: $102,041 mill
ion). Refer to the Analys
is of ﬁnanc
ial
instrument by stage table on page 62
Company

| 2024 | 2023
| Gross | ECL | Net 2 | Gross | ECL | Net 2
Amortised cost and FVOCI | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Stage 1 | 81,618 | (15) | 81,603 | 92,038 | (23) | 92,015
Strong | 78,648 | (12) | 78,636 | 90,028 | (21) | 90,007
Satisfactory | 2,970 | (3) | 2,967 | 1,979 | (2) | 1,977
Stage 2 | 244 | (2) | 242 | 315 | – | 315
Strong | – | – | – | 315 | – | 315
Satisfactory | 6 | – | 6 | – | – | –
High Risk | 238 | (2) | 236 | – | – | –
Stage 3 | – | – | – | 76 | (56) | 20
Gross balance¹ | 81,862 | (17) | 81,845 | 92,429 | (79) | 92,350

1
Stage 3 gross includes Nil (31 December 2023: $25 mill
ion) or
ig
inated cred
it-impa
ired debt secur
it
ies w
ith Nil impa
irment (31 December 2023: $14 m
ill
ion)
2
FVOCI instrument are not presented net of ECL. While the presentation is on a net basis for the table, the total net on-balance sheet amount is $81,855 mill
ion
(31 December 2023: $92,362 mill
ion). Refer to the Analys
is of ﬁnanc
ial
instrument by stage table on page 62
Risk Proﬁle continued
Standard Chartered Bank
88
Directors’ Report and Financ
ial Statements 2024
IFRS 9 expected credit loss methodology (audited)
Approach for determin
ing expected cred
it losses
Credit loss terminology

Component | Deﬁnit ion
Probabil ity of | The probabil ity that a counterparty w ill default, over the next 12 months from the reporting date (stage 1) or
default (PD) | over the lifet ime of the product (stage 2), incorporating the impact of forward-looking economic assumptions
| that have an effect on Credit Risk, such as unemployment rates and GDP forecasts. The PD estimates will
| ﬂuctuate in line with the economic cycle. The lifet ime (or term structure) PDs are based on stat ist ical models,
| calibrated using histor ical data and adjusted to incorporate forward-looking economic assumptions.
Loss given | The loss that is expected to arise on default, incorporating the impact of forward-looking economic assumptions
default (LGD) | where relevant, which represents the difference between the contractual cashFlows due and those that the bank
| expects to receive.
| The Group estimates LGD based on the history of recovery rates and considers the recovery of any collateral
| that is integral to the ﬁnanc ial asset, tak ing into account forward-looking economic assumptions where relevant.
Exposure at | The expected balance sheet exposure at the time of default, taking into account expected changes over the
default (EAD) | lifet ime of the exposure. Th is incorporates the impact of drawdowns of facil it ies with lim its, pr inc ipal and
| repayments of interest and amortisat ion.

To determine the expected credit loss, these components are multipl
ied together: PD for the reference per
iod (up to
12 months or lifet
ime) x LGD x EAD and d
iscounted to the balance sheet date using the effective interest rate as the
discount rate.
IFRS 9 expected credit loss models have been developed for the CIB business on a global basis, in line with their respective
portfolios. However, for some of the key countries, country-specif
ic models have also been developed. The cal
ibrat
ion of
forward-looking informat
ion
is assessed at a country or region level to take into account local macroeconomic condit
ions.
Retail expected credit loss models are country and product specif
ic g
iven the local nature of the retail business.
For less material retail portfolios, the Group has adopted less sophist
icated approaches based on h
istor
ical roll rates or
loss rates:
•
For medium-sized retail portfolios, a roll rate model is applied, which uses a matrix that gives the average loan migrat
ion
rate between delinquency states from period to period. A matrix multipl
icat
ion is then performed to generate the ﬁnal
PDs by delinquency bucket over different time horizons.
•
For smaller retail portfolios, a loss rate approach is applied. These use an adjusted gross charge-off rate, developed using
monthly write-off and recoveries over the preceding 12 months and total outstanding balances.
•
Whilst the loss rate approaches do not incorporate forward looking informat
ion, to the extent that there are s
ign
iﬁcant
changes in the macroeconomic forecasts an assessment is completed on whether an adjustment to the modelled output is
required.
For a lim
ited number of exposures, proxy parameters or approaches are used where the data
is not available to calculate
the orig
inat
ion PDs for the purpose of applying the SICR criter
ia; or for some reta
il portfolios where a full history of LGD data is
not available, estimates based on the loss experience from sim
ilar portfol
ios are used. The use of proxies is monitored and will
reduce over time.
The following processes are in place to assess the ongoing performance of the models:
•
Quarterly model monitor
ing that uses recent data to compare the d
ifferences between model predict
ions and actual
outcomes against approved thresholds.
•
Annual independent validat
ion
is performed by Group Model Valuation (GMV); Depth of GMV’s validat
ion var
ies
depending on the model material
ity. Mater
ial models would go through a full annual re-validat
ion process, wh
ile a less
intens
ive val
idat
ion process w
ill be performed on non-material models.
Applicat
ion of l
ifet
ime
Expected credit loss is estimated based on the period over which the Group is exposed to Credit Risk. For the major
ity
of exposures this equates to the maximum contractual period. For retail credit cards and corporate overdraft facil
it
ies,
however, the Group does not typically enforce the contractual period, which can be as short as one day. As a result, the
period over which the Group is exposed to Credit Risk for these instruments reﬂects their behavioural life, which incorporates
expectations of customer behaviour and the extent to which Credit Risk management actions curtail the period of that
exposure. The average behavioural life for retail credit cards is between 3 and 6 years across our footprint markets.
The behavioural life for corporate overdraft facil
it
ies is 24 months.
Risk Proﬁle continued
Standard Chartered Bank
89
Directors’ Report and Financ
ial Statements 2024
Key assumptions and judgements in determin
ing expected cred
it loss
Incorporation of forward-looking informat
ion
The evolving economic environment is a key determinant of the abil
ity of a bank’s cl
ients to meet their obligat
ions as they fall
due. It is a fundamental princ
iple of IFRS 9 that the prov
is
ions banks hold aga
inst 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 were to antic
ipate a sharp slowdown
in the world economy over the coming year, it
should hold more provis
ions today to absorb the cred
it 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 informat
ion
in the form of forecasts of the values of economic variables and asset prices that are likely to
have an effect on the repayment abil
ity of the Group’s cl
ients.
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 specif
ic
economic variables and asset prices. The research team takes consensus views into considerat
ion and sen
ior management
reviews project
ions for some core country var
iables against consensus when forming their view of the outlook. For the period
beyond ﬁve years, management util
ises the
in-house research view and third-party model outputs, which allow for a
reversion to long-term growth rates or norms. All project
ions are updated on a quarterly bas
is.
Forecast of key macroeconomic variables underlying the expected credit loss calculation and the impact
on non-linear
ity
In the Base Forecast – management’s view of the most likely outcome – the pace of growth of the world economy is expected
to remain broadly unchanged from 2024 at around 3 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). Support from easing ﬁnanc
ial cond
it
ions and expans
ionary
ﬁscal policy may be partly offset by protection
ist trade pol
ic
ies and st
ill-high interest rates in the US and elsewhere. The US
economy is set to moderate in 2025, after a resil
ient 2024 performance desp
ite elevated interest rates. The euro area
continues to struggle with major European economies includ
ing Germany and France who r
isk slipp
ing
into recession.
Asia is relatively healthy, although growth at the regional level is set to moderate slightly in 2025 as both China and India
slow. The Middle-East is expected also to remain a bright spot for global growth, with the region’s non-oil growth exceeding
overall global growth.
The uncertainty around the economic outlook remains elevated. In particular, the change in US Presidency is expected to
lead to sign
iﬁcant changes
in US polic
ies,
includ
ing new and h
igher tariffs on key US trading partners. On the geopolit
ical
front, tensions remain elevated over the conﬂict in Ukraine and the situat
ion
in the Middle-East.
Whilst the quarterly Base Forecast inform the Group’s strategic plan, one key requirement of IFRS 9 is that the assessment of
provis
ions should cons
ider multiple future economic environments. For example, the global economy may grow more quickly
or more slowly than the Base Forecast, and these variat
ions would have d
ifferent impl
icat
ions for the provis
ions that the
Group should hold today. As the negative impact of an economic downturn on credit losses tends to be greater than the
posit
ive
impact of an economic upturn, if the Group sets provis
ions only on the ECL under the Base Forecast
it might mainta
in
a level of provis
ions that does not appropr
iately capture the range of potential outcomes. To address the inherent
uncertainty in economic forecast, and the property of skewness (or non-linear
ity), IFRS 9 requ
ires reported ECL to be
a probabil
ity-we
ighted 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 simulat
ion, wh
ich addresses the challenges of crafting many realist
ic alternat
ive scenarios in the many
countries in which the Group operates by means of a model, which produces these alternative scenarios whilst consider
ing
the degree of histor
ical uncerta
inty (or volatil
ity) observed from Q1 1990 to Q3 2023 around econom
ic 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 specif
ic narrat
ive, although collectively they explore a range
of hypothetical alternative outcomes for the global economy, includ
ing scenar
ios that turn out better than expected and
scenarios that amplify antic
ipated stresses.
The tables on page 91 provide a summary of the Group’s Base Forecast for key markets. The peak/trough amounts in the
tables show the highest and lowest points with
in the Base Forecast.
Risk Proﬁle continued
Standard Chartered Bank
90
Directors’ Report and Financ
ial Statements 2024
China’s GDP growth is expected to ease slightly to 4.5 per cent in 2025 from 4.8 per cent in 2024. This reﬂects persistent
weakness in the property sector, though it is expected to moderate, external headwinds and low consumer conﬁdence.
Growth in India is also expected to ease with GDP expanding by 6.5 per cent from 6.9 per cent in 2024 as the impact from
recent one-off factors such as construction activ
ity and electr
ic
ity demand (am
id below normal rains) fade. GDP growth for
Singapore is expected to slow to 2.4 per cent in 2025 from 3.5 per cent last year . An uncertain global trade outlook will weigh
on sentiment in trade-reliant economies. Recent economic activ
ity may have also been partly dr
iven by front-loading of
orders of electronics ahead of potentially negative trade polic
ies
in 2025. In contrast the GDP growth for the UAE is expected
to improve to 5 per cent from 4 per cent in 2024. The faster growth in 2025 is mostly supported by an increase in oil-sector
growth, as the UAE is set to increase its oil output this year.
Brent crude oil prices are expected to average around $77 in 2025 compared to around $78 in 2024. They are expected to
remain at sim
ilar levels beyond th
is year. The ﬁve-year average oil price is $76.

2024 year-end forecasts 7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| China 5 | UAE | Singapore 6 | India
|  | Base |  |  |  | Base |  |  |  | Base |  |  |  | Base |  |
| 5 yr | forecast |  |  | 5 yr | forecast |  |  | 5 yr | forecast |  |  | 5 yr | forecast |  |
| average | quarterly |  |  | average | quarterly |  |  | average | quarterly |  |  | average | quarterly |  |
| base | peak/ |  |  | base | peak/ |  |  | base | peak/ |  |  | base | peak/ |  |
| forecast | trough | Low 2 | High 3 | forecast | trough | Low 2 | High 3 | forecast | trough | Low 2 | High 3 | forecast | trough | Low 2 | High 3
GDP growth |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(YoY%) | 4.1 | 5.3/3.2 | (1.0) | 9.3 | 3.7 | 5.4/2.7 | (0.1) | 12.6 | 2.3 | 3.4/0.6 | (2.7) | 7.0 | 6.6 | 7.1/5.9 | 3.2 | 10.0
Unemployment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(%) | 3.3 | 3.5/3.1 | 2.8 | 3.7 | NA | NA | NA | NA | 2.7 | 2.8/2.7 | 2.0 | 3.6 | NA | NA | NA | NA
3 month interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
rates (%) | 1.7 | 1.9/1.6 | 0.6 | 3.0 | 2.9 | 3.6/2.7 | 0.5 | 5.5 | 2.0 | 2.4/1.6 | 0.3 | 3.9 | 6.0 | 6.2/6.0 | 1.9 | 10.3
House prices |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(YoY%) | (1.3) 2.3/(5.6) (10.1) | 7.8 | 3.5 | 12.4/1.9 | (12.0) | 22.3 | 2.4 3.2/(0.4) (10.5) | 17.5 | 6.4 | 7.3/6.0 | (0.1) | 12.6

2023 year-end forecasts

| China 5 | UAE | Singapore 6 | India
|  | Base |  |  |  | Base |  |  |  | Base |  |  |  | Base |  |
| 5 yr | forecast |  |  | 5 yr | forecast |  |  | 5 yr | forecast |  |  | 5 yr | forecast |  |
| average | quarterly |  |  | average | quarterly |  |  | average | quarterly |  |  | average | quarterly |  |
| base | peak/ |  |  | base | peak/ |  |  | base | peak/ |  |  | base | peak/ |  |
| forecast | trough | Low 2 | High 3 | forecast | trough | Low 2 | High 3 | forecast | trough | Low 2 | High 3 | forecast | trough | Low 2 | High 3
GDP growth |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(YoY%) | 4.3 | 5.7/3.8 | 0.6 | 7.7 | 3.4 | 4.3/2.4 | (1.3) | 8.8 | 2.9 | 3.8/1.9 | (2.4) | 8.5 | 6.2 | 9.1/4.4 | 2.1 | 10.5
Unemployment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(%) | 4.0 | 4.1/3.8 | 3.3 | 4.4 | NA | NA | NA | NA | 2.8 | 2.9/2.8 | 1.7 | 3.8 | NA | NA | NA | NA
3 month interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
rates (%) | 2.1 | 2.5/1.7 | 0.8 | 3.8 | 3.8 | 5.3/2.7 | 0.4 | 7.8 | 2.9 | 4.1/2.3 | 0.6 | 5.9 | 6.2 | 6.3/5.8 | 2.7 | 9.9
House prices |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(YoY%) | 4.6 | 7.2/1.5 | (1.5) | 12.0 | 2.6 | 8.4/1.9 | (15.3) | 19.1 | 2.2 | 3.9/(0.7) (16.2) | 19.2 | 6.1 | 6.5/4.7 | (0.5) | 13.8

| 2024 year-end forecasts | 2023 year-end forecasts
| 5 yr average | Base forecast |  |  | 5 yr average | Base forecast |  |
| base forecast | peak/trough | Low 2 | High 3 | base forecast | peak/trough | Low 2 | High 3
Brent Crude, $ pb | 76.2 | 77.8/74.8 | 44.5 | 107.8 | 88.2 | 93.8/82.8 | 46.0 | 137.8

1
N/A – Not available
2
Represents the 10th percentile in the range of economic scenarios used to determine non-linear
ity
3
Represents the 90th percentile in the range of economic scenarios used to determine non-linear
ity
4
Base forecasts are evaluated from Q1 2024 to Q4 2028. The forward-looking simulat
ion starts from Q1 2024.
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 cit
izens and permanent res
idents.
7
Data presented are those used in the calculation of ECL. These may differ slightly to forecasts presented elsewhere in the Financ
ial statements as they are ﬁnalised
before the period end.
Risk Proﬁle continued
Standard Chartered Bank
91
Directors’ Report and Financ
ial Statements 2024
Judgemental adjustments
As at 31 December 2024, the Group held $50 mill
ion (31 December 2023: $33 m
ill
ion) of judgemental management overlays,
$42 mill
ion (31 December 2023: $11 m
ill
ion) of wh
ich relates to CIB, $1 mill
ion (31 December 2023: $5 m
ill
ion) to WRB and
$7 mill
ion (31 December 2023: $17 m
ill
ion) to Central and Others. Overlays have been taken for Bangladesh by est
imat
ing the
impact of deteriorat
ion to certa
in exposures in the country, together with an immater
ial amount for cl
imate risks. The overlay
in Bangladesh reﬂects that the polit
ical s
ituat
ion has contr
ibuted to an increas
ing level of uncerta
inty in the macroeconomic
outlook. Further details on the adjustment for climate risk are set out in Note 1 Accounting polic
ies.
Overlays held at 31 December 2023 of $33 mill
ion were fully released
in 2024. This comprises of $11 mill
ion
in CIB for China
Commercial real estate due to repayments, $5 mill
ion
in WRB for macroeconomic environment challenges and $17 mill
ion
in Central and Others relating to a temporary market dislocat
ion
in Africa and the Middle East.
As at 31 December 2024, judgemental post model adjustments which reduced ECL by a net $9 mill
ion (31 December 2023:
$1 mill
ion decrease
in ECL) have been applied. There was a $16 mill
ion upward adjustment for non-l
inear
ity, as the current set
of ceil
ings and ﬂoors used
in the Monte Carlo model generated a relatively narrow range of forecasts at 31 December 2024.
The total amount of non-linear
ity has been est
imated by assign
ing probab
il
ity we
ights of 68 per cent, 22 per cent and 10 per
cent respectively to the Base Forecast, Higher for Longer Commodit
ies and Rates, and Global Trade and Geopol
it
ical
Tensions scenarios which are presented on pages 91 and comparing this to the unweighted Base Forecast ECL. The non-
linear
ity PMA represents the d
ifference between the probabil
ity we
ighted ECL calculated using the three scenarios and the
probabil
ity we
ighted ECL calculated by the Monte Carlo model. The remain
ing $25 m
ill
ion reduct
ion in ECL relates to
adjustments applied to and for certain WRB models, primar
ily to adjust for temporary factors
impact
ing modelled outputs.
These will be released when these factors normalise.
Judgemental adjustments are re-assessed quarterly, are reviewed and approved by the IFRS 9 IIC and will be released when
the risks are no longer relevant.
Stage 3 assets
Credit-impa
ired assets managed by Stressed Asset R
isk incorporate forward-looking economic assumptions in respect of
the recovery outcomes ident
iﬁed, and are ass
igned ind
iv
idual probabil
ity we
ight
ings. These assumpt
ions are not based
on a Monte Carlo simulat
ion but are
informed by the Base Forecast.
Sensit
iv
ity of expected credit loss calculation to macroeconomic variables
The ECL calculation relies on multiple variables and is inherently non-linear and portfolio-dependent, which impl
ies that no
single analysis can fully demonstrate the sensit
iv
ity of the ECL to changes in the macroeconomic variables. The Group has
conducted a series of analyses with the aim of ident
ify
ing the macroeconomic variables which might have the greatest
impact on overall ECL. These encompassed single variable and multi-variable exercises, using simple up/down variat
ion
and extracts from actual calculation data, as well as bespoke scenario design and assessments.
The primary conclusion of these exercises is that no ind
iv
idual macroeconomic variable is materially inﬂuent
ial. 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 uninﬂuent
ial; rather, that the Group bel
ieves that considerat
ion of macroeconom
ics should
involve whole scenarios, as this aligns with the multi-variable nature of the calculation.
The Group faces downside risks in the operating environment related to the uncertaint
ies surround
ing the macroeconomic
outlook. To explore this, a sensit
iv
ity 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
uncertaint
ies over commod
ity prices. The Global Trade and Geopolit
ical Trade Tens
ions (GTGT) scenario is characterised by
an escalating trade war between the US and China and other economies. The “Higher for Longer Commodit
ies and Rates“
scenario explores the impact from stick
ier than expected
inﬂat
ion due to pers
istent shipp
ing d
isrupt
ions and r
ise in energy
prices amid fears of an escalation of the Middle East conﬂict.

|  |  | Global Trade and Geopolit ical | Higher for longer:
| Baseline | Tensions (GTGT) | Commodit ies and Rates
| Five year |  | Five year |  | Five year |
| average | Peak/Trough | average | Peak/Trough | average | Peak/Trough
China GDP | 4.1 | 5.3 / 3.2 | 0.8 | 3.8 / (2.6) | 3.5 | 4.3 / 1.8
China unemployment | 3.3 | 3.5 / 3.1 | 4.9 | 5.5 / 3.8 | 4.3 | 5.2 / 3.1
China property prices | (1.3) | 2.3 / (5.6) | (5.1) | 11.1 / (47.6) | (1.4) | 8.6 / (24.5)
UAE GDP | 3.7 | 5.4 / 2.7 | 0.8 | 3.7 / (6.5) | 3.5 | 4.2 / 2.8
UAE property prices | 3.5 | 12.4 / 1.9 | (0.6) | 12.0 / (12.1) | 3.2 | 11.6 / 1.7
US GDP | 2.0 | 2.6 / 1.1 | 0.3 | 2.2 / (3.2) | 1.1 | 2.5 / (2.1)
Singapore GDP | 2.3 | 3.4 / 0.6 | 0.0 | 3.1 / (5.9) | 1.6 | 2.8 / (2.3)
India GDP | 6.6 | 7.1 / 5.9 | 4.7 | 6.7 / 0.8 | 6.1 | 7.4 / 4.3
Crude oil | 76.2 | 77.8 / 74.8 | 59.1 | 86.2 / 46.2 | 84.9 | 113.4 / 74.8

Risk Proﬁle continued
Standard Chartered Bank
92
Directors’ Report and Financ
ial Statements 2024
The total reported stage 1 and 2 ECL provis
ions (
includ
ing both on and off-balance sheet
instruments) would be
approximately $47 mill
ion h
igher under the Higher for Longer Commodit
ies and Rates scenar
io and $172 mill
ion h
igher
under the Global Trade and Geopolit
ical Tens
ions scenario than the baseline ECL provis
ions (wh
ich excluded the impact of
multiple economic scenarios and management overlays which may already capture some of the risks in these scenarios).
The proportion of stage 2 assets would increase from 3.1 per cent in the base case to 3.3 per cent and 3.9 per cent respectively
under the Higher for Longer Commodit
ies and Rates and Global Trade and Geopol
it
ical Tens
ions 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 major
ity of the
increase in CIB came from the main corporate and project ﬁnance portfolios booked
in the Singapore. For the WRB portfolios most of the increases came from the unsecured retail portfolios with Singapore
credit cards most impacted.
There was no material change in modelled stage 3 provis
ions as these pr
imar
ily relate to unsecured reta
il exposures for which
the LGD is not sensit
ive to changes
in the macroeconomic forecasts. There is also no material change for non-modelled stage
3 exposures as these are more sensit
ive to cl
ient specif
ic factors than to alternat
ive macroeconomic scenarios.
The actual outcome of any scenario may be materially different due to, among other factors, the effect of management
actions to mit
igate potent
ial increases in risk and changes in the underlying portfolio.
Modelled provis
ions

| Increase in ECL
|  | ECL Global
| ECL Higher | Trade and
| for Longer | Geopolit ical
| Commodit ies | Trade
| and Rates | Tensions
| $mill ion | $ mill ion
Stage 1 |  |
Corporate & Investment Banking | 12 | 19
Wealth & Retail Banking | 6 | 18
Ventures | – | –
Central & Others | 1 | 2
Total increase in stage 1 ECL | 19 | 39
Stage 2 |  |
Corporate & Investment Banking | 19 | 96
Wealth & Retail Banking | 9 | 37
Ventures | – | –
Central & Others | – | –
Total increase in stage 2 ECL | 28 | 133
Total Stage 1 & 2 |  |
Corporate & Investment Banking | 31 | 115
Wealth & Retail Banking | 15 | 55
Ventures | – | –
Central & Others | 1 | 2
Total increase in stage 1 & 2 ECL | 47 | 172

Risk Proﬁle continued
Standard Chartered Bank
93
Directors’ Report and Financ
ial Statements 2024
Sign
iﬁcant
increase in credit risk (SICR)
Quantitat
ive cr
iter
ia
SICR is assessed by comparing the risk of default at the reporting date to the risk of default at orig
inat
ion. Whether a change
in the risk of default is sign
iﬁcant or not
is assessed using quantitat
ive and qual
itat
ive cr
iter
ia. These cr
iter
ia have been
separately deﬁned for each business and where meaningful are consistently applied across business lines.
Assets are considered to have experienced SICR if they have breached both relative and absolute thresholds for the change
in the average annualised IFRS 9 lifet
ime probab
il
ity of default (IFRS 9 PD) over the res
idual term of the exposure.
The absolute measure of increase in credit risk is used to capture instances where the IFRS 9 PDs on exposures are relatively
low at in
it
ial recognit
ion as these may
increase by several multiples without representing a sign
iﬁcant
increase in credit risk.
Where IFRS 9 PDs are relatively high at in
it
ial recognit
ion, a relat
ive measure is more appropriate in assessing whether there
is a sign
iﬁcant
increase in credit risk, as the IFRS 9 PDs increase more quickly.
The SICR thresholds have been calibrated based on the following princ
iples:
•
Stabil
ity – The thresholds are set to ach
ieve a stable stage 2 population at a portfolio level, trying to min
im
ise the number
of accounts moving back and forth between stage 1 and stage 2 in a short period of time
•
Accuracy – The thresholds are set such that there is a materially higher propensity for stage 2 exposures to eventually
default than is the case for stage 1 exposures
•
Dependency from backstops – The thresholds are stringent enough such that a high proportion of accounts transfer
to stage 2 due to movements in forward-looking IFRS 9 PDs rather than relying on backward-looking backstops such
as arrears
•
Relationsh
ip w
ith business and product risk proﬁles – the thresholds reﬂect the relative risk differences between different
products, and are aligned to business processes
For CIB clients the quantitat
ive thresholds are a relat
ive 100 per cent increase in IFRS 9 PD and an absolute change in IFRS 9
PD of between 50 and 100 bps for investment grade and sub-investment grade assets. For debt securit
ies or
ig
inated before
1 January 2018, the bank is util
is
ing the low Credit Risk simpl
iﬁed approach, where debt secur
it
ies w
ith an internal credit rating
mapped to an investment grade equivalent are allocated to stage 1 and all other debt securit
ies are allocated to stage 2.
For Wealth and Retail Banking (excluding Private Banking) clients, portfolio specif
ic quant
itat
ive thresholds
in Singapore,
Malaysia, India and UAE are applied for credit cards and one Business Client portfolio in India. The thresholds include relative
and absolute increases in IFRS 9 PD with average lifet
ime IFRS 9 PD cut-offs for those exposures that are w
ith
in a range of
customer util
isat
ion lim
its (for cred
it cards) and remain
ing tenor (for personal loans) and d
ifferent
iate between exposures
that are current and those that are 1 to 29 days past due.
The range of thresholds applied are:

| Relative IFRS 9 | Absolute IFRS | Customer | Average
| PD increase | 9 PD increase | util isat ion | IFRS 9 PD
Portfolio | (%) | (%) | (%) | (lifet ime)
Credit cards – Current | 50%-120% | 3.5%-9.3% | 15%-85% | 4.15%-11.6%
Credit cards – 1-29 days past due | 100%-180% | 3.5%-6.1% | 25%-47% | 3.5%-9.5%
Business Client Mortgages – Current | 100% | 4.4% | – | –
Business Client Mortgages – 1-29 days past due | 100% | 7.0% | – | –

For all other material WRB portfolios (excluding Private Banking) for which a statist
ical model has been bu
ilt, the quantitat
ive
SICR thresholds applied are a relative threshold of 100 per cent increase in IFRS 9 PD and an absolute change in IFRS 9 PD
of between 100 and 350 bps depending on the product. Certain countries have a higher absolute threshold reﬂecting the
lower default rate with
in the
ir personal loan portfolios compared with the Group’s other personal loan portfolios. The orig
inal
lifet
ime IFRS 9 PD term structure
is determined based on the orig
inal Appl
icat
ion Score or R
isk Segment of the client.
For all Private Banking classes, in line with risk management practice, an increase in credit risk is deemed to have occurred
where margin
ing or loan-to-value covenants have been breached. For Class I assets (lend
ing against divers
iﬁed l
iqu
id
collateral), if these margin
ing requ
irements have not been met with
in 30 days of a tr
igger, a sign
iﬁcant
increase in credit risk is
assumed to have occurred. For Class I and Class III assets (real-estate lending), a sign
iﬁcant
increase in credit risk is assumed
to have occurred where the bank is unable to ‘sell down’ the applicable assets to meet revised collateral requirements with
in
ﬁve days of a trigger. Class II assets are typically unsecured or partially secured, or secured against ill
iqu
id collateral such as
shares in private companies. Sign
iﬁcant cred
it deteriorat
ion of these assets
is deemed to have occurred when any early alert
trigger has been breached.
Risk Proﬁle continued
Standard Chartered Bank
94
Directors’ Report and Financ
ial Statements 2024
Qualitat
ive cr
iter
ia
Qualitat
ive factors that
ind
icate that there has been a s
ign
iﬁcant
increase in credit risk include processes linked to current risk
management, such as placing loans on non-purely precautionary early alert or being assigned a CG12 rating. An account is
placed on non-purely precautionary early alert if it exhib
its r
isk or potential weaknesses of a material nature requir
ing closer
monitor
ing, superv
is
ion or attent
ion by management. Weaknesses in such a borrower’s account, if left uncorrected, could
result in deteriorat
ion of repayment prospects and the l
ikel
ihood of be
ing downgraded. Indicators could include a rapid
erosion of posit
ion w
ith
in the
industry, concerns over management’s abil
ity to manage operat
ions, weak/deteriorat
ing
operating results, liqu
id
ity strain and overdue balances, among other factors.
All client assets that have been assigned a CG12 rating, equivalent to ‘Higher risk’, are deemed to have experienced a
sign
iﬁcant
increase in credit risk. Accounts rated CG12 are primar
ily managed by relat
ionsh
ip managers
in the CIB unit with
support from SAG for certain accounts. All CIB clients are placed in CG12 when they are 30days past due (DPD) unless they
are granted a waiver through a strict governance process.
In WRB, SICR is also assessed for where specif
ic r
isk elevation events have occurred in a market that are not yet reﬂected in
modelled outcomes or in other metrics. This is applied collectively either to impacted specif
ic products/customer cohorts
or across the overall consumer banking portfolio in the affected market.
Backstop
Across all portfolios, accounts that are 30 or more DPD on contractual payments of princ
ipal and/or
interest that have not
been captured by the criter
ia above are cons
idered to have experienced a sign
iﬁcant
increase in credit risk.
For less material portfolios, which are modelled based on a roll-rate or loss-rate approach, SICR is primar
ily assessed through
the 30 DPD trigger.
Expert credit judgement may be applied in assessing SICR to the extent that certain risks may not have been captured by
the models or through the above criter
ia. Such
instances are expected to be rare, for example due to events and material
uncertaint
ies ar
is
ing close to the report
ing date.
Assessment of credit-impa
ired ﬁnancial assets
WRB clients
The core components in determin
ing cred
it-impa
ired expected cred
it loss provis
ions are the value of gross charge-off and
recoveries. Gross charge-off and/or loss provis
ions are recogn
ised when it is established that the account is unlikely to pay
through the normal process. Recovery of unsecured debt post credit impa
irment
is recognised based on actual cash
collected, either directly from clients or through the sale of defaulted loans to third-party inst
itut
ions. Release of credit
impa
irment prov
is
ions for secured loans
is recognised if the loan outstanding is paid in full (release of full provis
ion),
or the provis
ion
is higher than the loan outstanding (release of the excess provis
ion).
CIB and Private Banking clients
Credit-impa
ired accounts are managed by the Group’s spec
ial
ist recovery un
it, Stressed Asset Group (SAG), which is
independent of the Client Coverage/Relationsh
ip Managers. Where a port
ion of exposure is considered not recoverable, a
stage 3 credit impa
irment prov
is
ion
is raised. This stage 3 provis
ion
is the difference between the loan-carrying amount and
the probabil
ity-we
ighted present value of estimated future cash ﬂows, reﬂecting a range of scenarios (typically the Upside,
Downside and Likely recovery outcomes). Where the exposure is secured by collateral, the values used will incorporate
the impact of forward-looking economic informat
ion on the value recoverable collateral and t
ime to realise the same.
The ind
iv
idual circumstances of each client are considered when SAR estimates future cashﬂows and the tim
ing of future
recoveries which involves sign
iﬁcant judgement. All ava
ilable sources, such as cashﬂow aris
ing from operat
ions, selling assets
or subsid
iar
ies, realis
ing collateral or payments under guarantees, are cons
idered. In any decis
ion relat
ing to the rais
ing of
provis
ions, the Group attempts to balance econom
ic condit
ions, local knowledge and exper
ience, and the results of
independent asset reviews. The ind
iv
idual impa
irment prov
is
ions (v
iz. those not directly from a model) are approved by
Stressed Assets Risk (SAR) who are in the Second Line of Defence.
Write-offs
Where it is considered that there is no realist
ic prospect of recover
ing a portion of an exposure against which an impa
irment
provis
ion has been ra
ised, that amount will be written off.
Risk Proﬁle continued
Standard Chartered Bank
95
Directors’ Report and Financ
ial Statements 2024
Governance of PMAs and applicat
ion of expert cred
it judgement in respect of expected credit losses
The Group’s Credit Policy and Standards framework details the requirements for continuous monitor
ing to
ident
ify any
changes in credit quality and resultant ratings, as well as ensuring a consistent approach to monitor
ing, manag
ing and
mit
igat
ing credit risks. The framework aligns with the governance of ECL estimat
ion through the early recogn
it
ion of
sign
iﬁcant deter
iorat
ions
in ratings which drive stage 2 and 3 ECL.
The models used in determin
ing expected cred
it losses are reviewed and approved by the Group Credit Model Assessment
Committee (CMAC) or Delegate Model Approver, which is appointed by the Model Risk Committee. CMAC has the
responsib
il
ity to assess and approve the use of models and to review all IFRS 9 interpretat
ions related to models. CMAC also
provides oversight on operational matters related to model development, performance monitor
ing and model val
idat
ion
activ
it
ies, includ
ing standards and regulatory matters.
Prior to submiss
ion to CMAC for approval, the models are val
idated by GMV, a function which is independent of the business
and the model developers. GMV’s analysis comprises review of model documentation, model design and methodology,
data validat
ion, rev
iew of the model development and calibrat
ion process, out-of-sample performance test
ing, and
assessment of compliance review against IFRS 9 rules and internal standards.
Model performance PMAs - The process of PMA ident
iﬁcation, calculat
ion and approval are prescribed in the Credit Risk IFRS
9 ECL Model Family Standards, which are approved by the Global Head, Model Risk Management. PMA calculations are
reviewed by GMV and submitted to CMAC for approval and will be removed when the estimates return to being with
in the
monitor
ing thresholds or val
idat
ion standards. The level of PMAs and remed
iat
ion plans are regularly tracked at CMAC.
Judgemental adjustments - These comprise judgemental PMAs and judgemental management overlays and , account
for events that are not captured in the Base Case Forecast or the resulting ECL calculated by the models. judgemental
adjustments must be approved by the IIC having considered the nature of the event, why the risk is not captured in the model,
and the basis on which the quantum of the overlay has been calculated. Judgemental adjustments are subject to quarterly
review and re-approval by the IIC and will be released when the risks are no longer relevant.
The IFRS 9 Impairment Committee:
•
Oversees the appropriateness of all Business Model Assessment and Solely Payments of Princ
ipal and Interest tests
•
Reviews and approves expected credit loss for ﬁnanc
ial assets class
if
ied as stages 1, 2 and 3 for each ﬁnancial report
ing period
•
Reviews and approves stage allocation rules and thresholds
•
Approves material adjustments in relation to expected credit loss for fair value through other comprehensive income and
amortised cost ﬁnanc
ial assets
•
Reviews, challenges and approves base macroeconomic forecasts and the multiple macroeconomic scenarios approach
that are util
ised
in the forward-looking expected credit loss calculations
Key inputs into the calculation and resulting expected credit loss provis
ions are subject to rev
iew and approval by the IIC.
The IIC consists of senior representatives from Risk and Finance. It meets at least twice every quarter; once before the models
are run to approve key inputs into the calculation, and once after the models are run to approve the expected credit loss
provis
ions and any judgemental overr
ides that may be necessary.
The IIC is supported by an Expert Panel which also reviews and challenges the base case project
ions and mult
iple
macroeconomic scenarios. The Expert Panel consists of members of Enterprise Risk Management (which includes
the Scenario Design team), Finance, Group Economic Research and country representatives of major jur
isd
ict
ions.
Risk Proﬁle continued
Standard Chartered Bank
96
Directors’ Report and Financ
ial Statements 2024
Traded Risk
Market Risk (audited)
Market Risk is the potential for fair value loss due to adverse moves in markets. The Group’s exposure to Market Risk arises
predominantly from the following sources:
• Trading book:
–
The Group provides clients with access to markets, facil
itat
ion of which entails the Group taking moderate market
risk posit
ions. All trad
ing teams support client activ
ity; there are no propr
ietary trading teams. Hence, income earned
from market risk-related activ
it
ies is primar
ily dr
iven by the volume of client activ
ity.
• Non-trading book:
–
Treasury is required to hold a liqu
id assets buffer, much of wh
ich is held in high-quality marketable debt securit
ies
–
The Group underwrites and sells down loans, and invests in select investment grade debt securit
ies w
ith 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 polic
ies and pract
ices regarding market risk management is provided in the Princ
ipal R
isks section
(page 52).
The primary categories of Market Risk for the Group are:
•
Interest Rate Risk: aris
ing from changes
in yield curves and impl
ied volat
il
it
ies
•
Foreign Exchange Risk: aris
ing from changes
in currency exchange rates and impl
ied volat
il
it
ies
•
Commodity Risk: aris
ing from changes
in commodity prices and impl
ied volat
il
it
ies
•
Credit Spread Risk: aris
ing from changes
in the price of debt instruments and credit-linked derivat
ives and dr
iven by factors
other than the level of risk-free interest rates
•
Equity Risk: aris
ing from changes
in the prices of equit
ies and
impl
ied volat
il
it
ies
Market risk changes (audited)
Value at Risk (VaR) allows the Group to manage Market Risk across the trading book and most of the fair valued
non-trading books.
The average level of total trading and non-trading VaR in 2024 was $30.2 mill
ion, 27 per cent lower than 2023 ($41.1 m
ill
ion).
The year end level of total trading and non-trading VaR in 2024 was $30.7 mill
ion, 5 per cent lower than 2023 ($32.2 m
ill
ion),
due to a reduction in credit spreads.
For the trading book, the average level of VaR in 2024 was $18.4 mill
ion, 2 per cent h
igher than 2023 ($18 mill
ion).
Trading activ
it
ies have remained relatively unchanged, and client driven.
Risk Proﬁle continued
Standard Chartered Bank
97
Directors’ Report and Financ
ial Statements 2024
Daily value at risk (VaR at 97.5%, one day) (audited)

| 2024 | 2023
| Average | High | Low | Year End | Average | High | Low | Year End
Trading 1 and non-trading 2 | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Interest Rate Risk | 21.7 | 31.1 | 11.9 | 27.3 | 26.3 | 38.8 | 16.8 | 17.2
Credit Spread Risk | 14.8 | 25.6 | 9.9 | 12.7 | 27.9 | 43.9 | 20.9 | 26.0
Foreign Exchange Risk | 8.9 | 15.6 | 5.1 | 7.6 | 6.6 | 10.0 | 3.6 | 6.3
Commodity Risk | 4.6 | 9.7 | 2.4 | 4.1 | 5.6 | 9.4 | 3.4 | 4.6
Equity Risk | 0.4 | 0.9 | – | – | 0.1 | 0.4 | – | –
Divers iﬁcation effect 3 | (20.2) | NA | NA | (21.0) | (25.4) | NA | NA | (21.9)
Total | 30.2 | 43.6 | 18.8 | 30.7 | 41.1 | 55.3 | 30.3 | 32.2

| 2024 | 2023
| Average | High | Low | Year End | Average | High | Low | Year End
Trading 1 | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Interest Rate Risk | 10.7 | 18.2 | 5.6 | 12.4 | 10.8 | 14.8 | 6.3 | 6.3
Credit Spread Risk | 4.6 | 8.5 | 2.9 | 3.4 | 6.9 | 9.7 | 5.7 | 6.9
Foreign Exchange Risk | 8.9 | 15.6 | 5.1 | 7.6 | 6.6 | 10.0 | 3.6 | 6.3
Commodity Risk | 4.5 | 9.7 | 2.3 | 4.1 | 5.6 | 9.4 | 3.4 | 4.5
Equity Risk | – | – | – | – | – | – | – | –
Divers iﬁcation effect 3 | (10.3) | NA | NA | (6.0) | (11.9) | NA | NA | (9.8)
Total | 18.4 | 29.4 | 11.0 | 21.5 | 18.0 | 25.3 | 13.0 | 14.2

| 2024 | 2023
| Average | High | Low | Year End | Average | High | Low | Year End
Non-trading 2 | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Interest Rate Risk | 18.4 | 23.6 | 11.5 | 22.8 | 22.9 | 31.0 | 13.4 | 14.3
Credit Spread Risk | 13.1 | 21.3 | 8.1 | 11.5 | 24.1 | 37.8 | 17.6 | 20.1
Equity Risk | 0.4 | 0.9 | – | – | 0.1 | 0.4 | – | –
Divers iﬁcation effect 3 | (8.1) | NA | NA | (4.2) | (13.1) | NA | NA | (8.6)
Total | 23.8 | 30.5 | 17.4 | 30.1 | 34.0 | 43.1 | 23.6 | 25.8

The following table sets out how trading and non-trading VaR is distr
ibuted across the Group’s bus
inesses:

| 2024 | 2023
| Average | High | Low | Year End | Average | High | Low | Year End
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Trading 1 and non-trading 2 | 30.2 | 43.6 | 18.8 | 30.7 | 41.0 | 55.3 | 30.3 | 32.2
Trading 1 |  |  |  |  |  |  |  |
Global Credit | 5.2 | 9.2 | 3.1 | 4.0 | 11.1 | 15.7 | 7.2 | 7.6
Macro Trading 4 | 15.8 | 27.7 | 8.0 | 17.7 | 11.6 | 16.0 | 7.6 | 9.6
XVA | 4.3 | 5.7 | 3.3 | 3.3 | 5.8 | 7.8 | 4.1 | 5.6
Divers iﬁcation effect 3 | (6.9) | NA | NA | (3.5) | (10.5) | NA | NA | (8.6)
Total | 18.4 | 29.4 | 11.0 | 21.5 | 18.0 | 25.3 | 13.0 | 14.2
Non-trading 2 |  |  |  |  |  |  |  |
Treasury 5 | 22.8 | 27.2 | 16.8 | 27.0 | 33.0 | 40.9 | 22.2 | 25.5
Global Credit | 4.0 | 9.5 | 2.3 | 8.2 | 3.7 | 14.0 | 1.9 | 3.7
Listed Private Equity | 0.4 | 0.9 | – | – | 0.1 | 0.4 | – | –
Divers iﬁcation effect 3 | (3.4) | NA | NA | (5.1) | (2.9) | NA | NA | (3.4)
Total | 23.8 | 30.5 | 17.4 | 30.1 | 34.0 | 43.1 | 23.6 | 25.8

1
The trading book for Market Risk is deﬁned in accordance with the UK onshored Capital Requirements Regulation Part 3 Title I Chapter 3, which restricts the posit
ions
permitted in the trading book
2
The non-trading book VaR does not include the loan underwrit
ing bus
iness
3
The total VaR is non-addit
ive across r
isk types due to divers
iﬁcation effects, wh
ich is measured as the difference between the sum of the VaR by ind
iv
idual risk type
or business and the combined total VaR. As the maximum and min
imum occur on d
ifferent days for different risk types or businesses, it is not meaningful to calculate
a portfolio divers
iﬁcation beneﬁt for these measures
4
Macro Trading comprises the Rates, FX and Commodit
ies bus
inesses
5
Treasury comprises Treasury Markets and Treasury Capital Management businesses
Risk Proﬁle continued
Standard Chartered Bank
98
Directors’ Report and Financ
ial Statements 2024
Average daily income earned from Market Risk-related activ
it
ies
¹
(audited)
Trading: The average level of total trading daily income in 2024 was $8.3 mill
ion, 6 per cent h
igher than 2023 ($7.8 mill
ion).
The increase is largely attributable to higher ﬁnanc
ing
income across Credit Trading businesses includ
ing Global Repo and
Structured Credit Financ
ing.
Non-trading: The average level of total non-trading daily income in 2024 was $2.3 mill
ion, attr
ibutable to translation gains on
the revaluation of FX posit
ions
in Egypt, and FX revaluation gains across currencies in Markets Credit Trading business.

| 2024 | 2023
Trading | $mill ion | $mill ion
Interest Rate Risk | 3.0 | 3.0
Credit Spread Risk | 1.1 | 0.7
Foreign Exchange Risk | 3.7 | 3.7
Commodity Risk | 0.5 | 0.4
Equity Risk | – | –
Total | 8.3 | 7.8

Non-trading | $mill ion | $mill ion
Interest Rate Risk | 0.6 | (0.1)
Credit Spread Risk | 1.7 | (0.5)
Equity Risk | – | 0.1
Total | 2.3 | (0.5)

1
Reﬂects total product income which is the sum of client income and own account income. Includes elements of trading income, interest income and non funded income
which are generated from Market Risk-related activ
it
ies. Rates, XVA and Treasury income are included under Interest Rate Risk whilst Credit Trading income is included
under Credit Spread Risk
Structural foreign exchange exposures
The table below sets out the princ
ipal structural fore
ign exchange exposures (net of investment hedges) of the Group.

| 2024 | 2023
| $mill ion | $mill ion
Indian rupee | 3,451 | 3,291
Singapore dollar | 3,279 | 2,370
Malaysian ringg it | 1,538 | 1,540
Bangladeshi taka | 1,113 | 1,007
Euro | 1,112 | 1,125
UAE dirham | 797 | 696
Thai baht | 763 | 782
Pakistan i rupee | 392 | 306
Indonesian rupiah | 230 | 293
Other | 3,512 | 3,300
| 16,187 | 14,710

As at 31 December 2024, the Group had taken net investment hedges using derivat
ive ﬁnancial
instruments to partly cover its
exposure to the Indian rupee of $1,784 mill
ion (31 December 2023: $1,809 m
ill
ion), UAE d
irham of $1,470 mill
ion (31 December
2023: $1,470 mill
ion), S
ingapore dollar of $nil mill
ion (31 December 2023: $1,047 m
ill
ion) and South Afr
ican rand of $nil mill
ion
(31 December 2023: $64 mill
ion). An analys
is has been performed on these exposures to assess the impact of a 1 per cent fall
in the US dollar exchange rates, adjusted to incorporate the impacts of correlations of these currencies to the US dollar.
The impact on the posit
ions above would be an
increase of $294 mill
ion (31 December 2023: $146 m
ill
ion). Changes
in the
valuation of these posit
ions are taken to reserves.
For analysis of the Group’s capital posit
ion and requ
irements, refer to the Capital Review (page 109).
Risk Proﬁle continued
Standard Chartered Bank
99
Directors’ Report and Financ
ial Statements 2024
Counterparty credit risk
Counterparty Credit Risk is the potential for loss in the event of the default of a derivat
ive counterparty, after tak
ing into
account the value of elig
ible collaterals and r
isk mit
igat
ion techniques. The Group’s counterparty credit exposures are
included in the Credit Risk section.
Derivat
ive ﬁnancial
instruments Credit Risk mit
igat
ion
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 posit
ive and negat
ive mark-to-market values of applicable derivat
ive
transactions.
In addit
ion, the Group enters
into credit support annexes (CSAs) with counterparties where collateral is deemed a necessary
or desirable mit
igant to the exposure. Cash collateral
includes collateral called under a variat
ion marg
in process from
counterparties if total uncollateralised mark-to-market exposure exceeds the threshold and min
imum transfer amount
specif
ied
in the CSA. With certain counterparties, the CSA is reciprocal and requires us to post collateral if the overall
mark-to-market values of posit
ions are
in the counterparty’s favour and exceed an agreed threshold.
Liqu
id
ity and Funding risk
Liqu
id
ity and Funding Risk is the risk that the Group may not have sufﬁc
ient stable or d
iverse sources of funding to meet its
obligat
ions as they fall due.
The Group follows the PLC Group’s Liqu
id
ity and Funding Risk framework, which requires each country to ensure that it
operates with
in predeﬁned l
iqu
id
ity lim
its and rema
ins in compliance with PLC Group’s liqu
id
ity polic
ies and pract
ices,
as well as local regulatory requirements.
The table below shows the composit
ion of l
iab
il
it
ies
in which customer deposits make up 50 per cent of total liab
il
it
ies and
equity as at 31 December 2024, the major
ity of wh
ich are current accounts, savings accounts and time deposits.

Composit ion of l iab il it ies and equ ity | Percentage
Equity | 6.1%
Subordinated liab il it ies and other borrowed funds | 1.8%
Debt securit ies in issue | 9.2%
Derivat ive ﬁnancial instruments | 14.7%
Customer accounts | 50.3%
Deposit by banks | 5.7%
Other liab il it ies | 12.2%
Total | 100.0%

Liqu
id
ity and Funding risk metrics
The Group monitors key liqu
id
ity metrics regularly on a country basis.
The following liqu
id
ity and funding Board Risk Appetite metrics deﬁne the maximum amount and type of risk that the Group
is will
ing to assume
in pursuit of its strategy: liqu
id
ity coverage ratio (LCR), recovery capacity and net stable funding ratio
(NSFR). In addit
ion to the Board R
isk Appetite, there are further lim
its that apply at Group and country level such as external
wholesale borrowing (WBE) and cross currency lim
its.
Liqu
id
ity coverage ratio (LCR)
The LCR aims to ensure that a bank has sufﬁc
ient unencumbered h
igh-quality liqu
id assets to meet
its liqu
id
ity needs in a
30-calendar-day liqu
id
ity stress scenario. Standard Chartered Bank is not regulated for LCR, however, the bank and material
subsid
iar
ies in the consolidat
ion have standalone LCR rat
ios above 100 per cent at 31 December 2024, calculated under the
Liqu
id
ity Coverage Ratio (CRR) Part of the PRA Rulebook.
Stress coverage
Stress testing and scenario analysis are used to assess the ﬁnanc
ial and management capab
il
ity to cont
inue to operate
effectively under extreme, but plausible, operating condit
ions and to understand the potent
ial threats to the PLC Group’s
liqu
id
ity and other ﬁnanc
ial resources.
The PLC Group’s internal liqu
id
ity adequacy assessment process (‘ILAAP’) stress testing framework covers the following stress
scenarios:
•
Standard Chartered-specif
ic – Captures the l
iqu
id
ity impact from an id
iosyncrat
ic event affecting Standard Chartered only,
with the rest of the market assumed to be operating normally;
•
Market wide – Captures the liqu
id
ity impact from a market wide cris
is affect
ing all partic
ipants
in a country, region or
globally, and;
•
Combined – Assumes both Standard Chartered-specif
ic and Market-w
ide events affect the PLC Group simultaneously
and hence is the most severe scenario.
Risk Proﬁle continued
Standard Chartered Bank
100
Directors’ Report and Financ
ial Statements 2024
All scenarios include, but are not lim
ited to, modelled outﬂows for reta
il and wholesale funding, off-balance sheet funding
risk, cross currency funding risk, intraday risk, franchise risk and risks associated with a deteriorat
ion of a ﬁrm’s cred
it rating.
Concentration risk approach has been enhanced to capture single name and industry concentration.
As of 31 December 2024, all entit
ies w
ith
in the Group follow a cons
istent approach and met their ind
iv
idual ILAAP stress test
requirements with
in r
isk appetite, and as a result, ensure Group has surplus liqu
id
ity on a consolidated basis to meet the
deﬁned survival horizon.
External wholesale borrowing
This metric seeks to monitor and prevent excessive reliance on wholesale borrowing. Triggers are applied to branches and
operating subsid
iar
ies in the Group.
Advances-to-deposits ratio
This is deﬁned as the ratio of total loans and advances to customers relative to total customer accounts. An advances-to-
deposits ratio of 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. Lim
its and targets are appl
ied to all branches and operating
subsid
iar
ies in the Group.
Advances-to-deposits ratio has increased by 3.4 percent due to a $9.1 bill
ion
increase in loans and advances.

| 2024 | 2023
| $mill ion | $mill ion
Total loans and advances to customers 1,2 | 133,923 | 124,794
Total customer accounts 3 | 248,426 | 247,068
Advances-to-deposits ratio | 53.9% | 50.5%

1
Excludes reverse repurchase agreement and other sim
ilar secured lend
ing of $9,121 mill
ion and
includes loans and advances to customers held at fair value through
proﬁt and loss of $3,989 mill
ion
2
Loans and advances to customers for the purpose of the advances-to-deposits ratio excludes $19,187 mill
ion of approved balances held w
ith central banks, conﬁrmed
as repayable at the point of stress.
3
Includes customer accounts held at fair value through proﬁt or loss of $9,222 mill
ion (31 December 2023: $9,166 m
ill
ion)
Net stable funding ratio (NSFR)
The NSFR is a balance sheet metric which requires inst
itut
ions to mainta
in a stable fund
ing proﬁle in relation to an assumed
duration of their assets and off-balance sheet activ
it
ies 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
liab
il
it
ies and cap
ital, based on their perceived stabil
ity and the amount of stable fund
ing they provide. Likew
ise, RSF factors
are applied to assets and off-balance sheet exposures according to the amount of stable funding they require. Standard
Chartered Bank is not regulated for NSFR, however the bank and material subsid
iar
ies in the consolidat
ion have standalone
NSFR ratios above 100 per cent at 31 December 2024.
Liqu
id
ity pool
The liqu
id
ity value of the Group’s LCR elig
ible l
iqu
id
ity pool at the reporting date was $131 bill
ion. The ﬁgures
in the below table
account for haircuts, currency convertib
il
ity and portabil
ity constra
ints, and therefore are not directly comparable with the
consolidated balance sheet. A liqu
id
ity pool is held to offset stress outﬂows as deﬁned in the LCR per PRA rulebook.

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Level 1 securit ies |  |  |  |
Cash and balances at central banks | 69,453 | 78,030 | 42,180 | 50,494
Central banks, governments /public sector entit ies | 42,389 | 34,580 | 23,714 | 23,296
Multilateral development banks and internat ional organ isat ions | 14,385 | 11,842 | 14,287 | 11,715
Other | 343 | 1,287 | 343 | 1,161
Total Level 1 securit ies | 126,570 | 125,739 | 80,524 | 86,666
Level 2A securit ies | 4,060 | 9,046 | 3,306 | 7,176
Level 2B securit ies | 411 | 724 | 410 | 376
Total LCR elig ible assets | 131,041 | 135,509 | 84,240 | 94,218

Risk Proﬁle continued
Standard Chartered Bank
101
Directors’ Report and Financ
ial Statements 2024
Liqu
id
ity analysis of the Group’s balance sheet (audited)
Contractual maturity of assets and liab
il
it
ies
The following table presents assets and liab
il
it
ies by matur
ity groupings based on the remain
ing per
iod to the contractual
maturity date as at the balance sheet date on a discounted basis. Contractual maturit
ies do not necessar
ily reﬂect actual
repayments or cashﬂows.
With
in the tables below, cash and balances w
ith central banks, interbank placements and investment securit
ies that are
fair value through other comprehensive income are used by the Group princ
ipally for l
iqu
id
ity management purposes.
As at the reporting date, assets remain predominantly short-dated, with 65 per cent maturing in one year.
Group

| 2024
|  | Between one | Between |  |  |  | Between |  |
|  | month and | three | Between six | Between | Between one | two years | More than |
| One month | three | months and | months and | nine months | year and two | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |  |
Cash and balances at |  |  |  |  |  |  |  |  |
central banks | 53,804 | – | – | – | – | – | – | 2,861 | 56,665
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 23,025 | 15,570 | 11,128 | 6,655 | 3,632 | 6,858 | 9,013 | 6,836 | 82,717
Loans and advances |  |  |  |  |  |  |  |  |
to banks 1,2 | 11,412 | 13,483 | 7,778 | 5,090 | 3,333 | 7,517 | 2,881 | 1,172 | 52,666
Loans and advances |  |  |  |  |  |  |  |  |
to customers 1,2 | 49,102 | 42,519 | 18,989 | 8,543 | 9,355 | 15,843 | 18,433 | 37,358 | 200,142
Investment securit ies 1 | 7,519 | 15,812 | 9,680 | 4,581 | 7,223 | 18,256 | 26,620 | 38,750 | 128,441
Other assets | 8,575 | 21,365 | 1,045 | 376 | 827 | 71 | 64 | 5,358 | 37,681
Due from subsid iary |  |  |  |  |  |  |  |  |
undertakings and |  |  |  |  |  |  |  |  |
other related parties | 5,222 | – | – | – | – | – | – | – | 5,222
Total assets | 158,659 | 108,749 | 48,620 | 25,245 | 24,370 | 48,545 | 57,011 | 92,335 | 563,534
Liab il it ies |  |  |  |  |  |  |  |  |
Deposits by banks 1,3 | 21,215 | 2,145 | 1,473 | 786 | 451 | 4,288 | 1,935 | 3 | 32,296
Customer accounts 1,4 | 221,755 | 25,761 | 15,092 | 5,243 | 6,086 | 6,420 | 2,358 | 426 | 283,141
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 22,341 | 17,329 | 10,929 | 6,454 | 3,640 | 6,168 | 9,285 | 6,431 | 82,577
Senior debt 5 | 606 | 1,711 | 2,431 | 1,934 | 849 | 2,362 | 6,293 | 4,373 | 20,559
Other debt securit ies |  |  |  |  |  |  |  |  |
in issue 1 | 2,672 | 2,314 | 6,479 | 4,521 | 4,726 | 806 | 6,673 | 3,290 | 31,481
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 28,246 | – | – | – | – | – | – | – | 28,246
Other liab il it ies | 9,131 | 23,171 | 669 | 483 | 125 | 3,987 | 419 | 2,774 | 40,759
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | 8 | 36 | – | 73 | 19 | 206 | 532 | 9,485 | 10,359
Total liab il it ies | 305,974 | 72,467 | 37,073 | 19,494 | 15,896 | 24,237 | 27,495 | 26,782 | 529,418
Net liqu id ity gap | (147,315) | 36,282 | 11,547 | 5,751 | 8,474 | 24,308 | 29,516 | 65,553 | 34,116

1
Loans and advances, investment securit
ies, depos
its by banks, customer accounts and debt securit
ies
in issue include ﬁnanc
ial
instruments held at fair value through
proﬁt or loss, see Note 12 Financ
ial
instruments
2
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing of $77.6 bill
ion
3
Deposits by banks include repurchase agreements and other sim
ilar secured borrow
ing of $8.4 bill
ion
4
Customer accounts include repurchase agreements and other sim
ilar secured borrow
ing of $34.7 bill
ion
5
Senior debt maturity proﬁles are based upon contractual maturity, which may be later than call options over the debt held by the Group
Risk Proﬁle continued
Standard Chartered Bank
102
Directors’ Report and Financ
ial Statements 2024

| 2023
|  | Between | Between |  |  |  | Between |  |
|  | one month | three | Between six | Between | Between | two years | More than |
| One month | and three | months and | months and | nine months | one year and | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | two years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |  |
Cash and balances at |  |  |  |  |  |  |  |  |
central banks | 61,147 | – | – | – | – | – | – | 3,051 | 64,198
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 19,240 | 9,324 | 6,132 | 3,098 | 2,548 | 3,997 | 5,208 | 3,007 | 52,554
Loans and advances |  |  |  |  |  |  |  |  |
to banks 1,2 | 17,521 | 14,057 | 7,166 | 3,563 | 4,104 | 1,488 | 2,124 | 1,098 | 51,121
Loans and advances |  |  |  |  |  |  |  |  |
to customers 1,2 | 61,802 | 40,058 | 18,856 | 8,866 | 8,234 | 13,212 | 15,950 | 34,449 | 201,427
Investment securit ies 1 | 6,246 | 12,824 | 9,487 | 8,350 | 7,274 | 12,020 | 31,708 | 38,063 | 125,972
Other assets | 9,071 | 20,691 | 1,088 | 408 | 528 | 65 | 93 | 5,697 | 37,641
Due from subsid iary |  |  |  |  |  |  |  |  |
undertakings and |  |  |  |  |  |  |  |  |
other related parties | 5,666 | – | – | – | – | – | – | – | 5,666
Total assets | 180,693 | 96,954 | 42,729 | 24,285 | 22,688 | 30,782 | 55,083 | 85,365 | 538,579
Liab il it ies |  |  |  |  |  |  |  |  |
Deposits by banks 1,3 | 21,993 | 1,637 | 1,086 | 503 | 594 | 1,243 | 2,845 | 4 | 29,905
Customer accounts 1,4 | 220,227 | 34,561 | 17,476 | 7,681 | 6,031 | 4,916 | 2,446 | 227 | 293,565
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 18,540 | 11,042 | 5,836 | 3,299 | 2,438 | 4,125 | 5,952 | 3,941 | 55,173
Senior debt 5 | 45 | 992 | 1,353 | 758 | 536 | 3,742 | 5,897 | 4,301 | 17,624
Other debt securit ies |  |  |  |  |  |  |  |  |
in issue 1 | 3,063 | 5,257 | 5,247 | 3,182 | 2,153 | 1,827 | 3,191 | 4,787 | 28,707
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 31,166 | – | – | – | – | – | – | – | 31,166
Other liab il it ies | 9,437 | 20,040 | 213 | 20 | 62 | 1,687 | 1,556 | 4,026 | 37,041
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | – | – | 11 | – | 11 | 21 | 73 | 11,338 | 11,454
Total liab il it ies | 304,471 | 73,529 | 31,222 | 15,443 | 11,825 | 17,561 | 21,960 | 28,624 | 504,635
Net liqu id ity gap | (123,778) | 23,425 | 11,507 | 8,842 | 10,863 | 13,221 | 33,123 | 56,741 | 33,944

1
Loans and advances, investment securit
ies, depos
its by banks, customer accounts and debt securit
ies
in issue include ﬁnanc
ial
instruments held at fair value through
proﬁt or loss, see Note 12 Financ
ial
instruments
2
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing of $83.6 bill
ion
3
Deposits by banks include repurchase agreements and other sim
ilar secured borrow
ing of $5.0 bill
ion
4
Customer accounts include repurchase agreements and other sim
ilar secured borrow
ing of $46.5 bill
ion
5
Senior debt maturity proﬁles are based upon contractual maturity, which may be later than call options over the debt held by the Group
Risk Proﬁle continued
Standard Chartered Bank
103
Directors’ Report and Financ
ial Statements 2024
Company

| 2024
|  | Between one | Between |  |  |  | Between |  |
|  | month and | three | Between six | Between | Between one | two years | More than |
| One month | three | months and | months and | nine months | year and two | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |  |
Cash and balances at |  |  |  |  |  |  |  |  |
central banks | 44,072 | – | – | – | – | – | – | 1,161 | 45,233
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 23,313 | 15,490 | 10,848 | 6,513 | 3,741 | 6,913 | 9,901 | 6,125 | 82,844
Loans and advances |  |  |  |  |  |  |  |  |
to banks 1,2 | 7,857 | 9,599 | 5,346 | 3,886 | 2,403 | 5,762 | 2,575 | 1,173 | 38,601
Loans and advances |  |  |  |  |  |  |  |  |
to customers 1,2 | 30,561 | 20,110 | 14,562 | 6,837 | 7,989 | 13,176 | 10,613 | 14,200 | 118,048
Investment securit ies 1 | 3,726 | 7,620 | 7,679 | 3,010 | 5,953 | 15,370 | 23,346 | 36,449 | 103,153
Investment in subsid iary |  |  |  |  |  |  |  |  |
undertaking | – | – | – | – | – | – | – | 10,671 | 10,671
Other assets | 7,595 | 15,370 | 652 | 234 | 359 | 33 | 51 | 2,781 | 27,075
Due from subsid iary |  |  |  |  |  |  |  |  |
undertakings and |  |  |  |  |  |  |  |  |
other related parties | 10,066 | – | – | – | – | – | – | – | 10,066
Total assets | 127,190 | 68,189 | 39,087 | 20,480 | 20,445 | 41,254 | 46,486 | 72,560 | 435,691
Liab il it ies |  |  |  |  |  |  |  |  |
Deposits by banks 1,3 | 17,521 | 1,933 | 1,385 | 758 | 440 | 3,506 | 1,883 | – | 27,426
Customer accounts 1,4 | 126,657 | 14,880 | 7,380 | 2,275 | 3,410 | 5,746 | 2,158 | 414 | 162,920
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 22,875 | 17,383 | 10,601 | 6,297 | 3,574 | 6,271 | 9,803 | 5,941 | 82,745
Senior debt 5 | 606 | 1,690 | 2,380 | 1,934 | 849 | 2,303 | 6,271 | 4,373 | 20,406
Other debt securit ies |  |  |  |  |  |  |  |  |
in issue 1 | 2,392 | 1,899 | 6,050 | 4,266 | 4,375 | 806 | 5,584 | 2,365 | 27,737
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 42,313 | – | – | – | – | – | – | – | 42,313
Other liab il it ies | 9,648 | 16,332 | 648 | 432 | 92 | 3,888 | 321 | – | 31,361
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | 8 | 36 | – | 73 | 19 | 206 | 514 | 8,945 | 9,801
Total liab il it ies | 222,020 | 54,153 | 28,444 | 16,035 | 12,759 | 22,726 | 26,534 | 22,038 | 404,709
Net liqu id ity gap | (94,830) | 14,036 | 10,643 | 4,445 | 7,686 | 18,528 | 19,952 | 50,522 | 30,982

1
Loans and advances, investment securit
ies, depos
its by banks, customer accounts and debt securit
ies
in issue include ﬁnanc
ial
instruments held at fair value through
proﬁt or loss, see Note 12 Financ
ial
instruments
2
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing of $72.6 bill
ion
3
Deposits by banks include repurchase agreements and other sim
ilar secured borrow
ing of $8.1 bill
ion
4
Customer accounts include repurchase agreements and other sim
ilar secured borrow
ing of $34.6 bill
ion
5
Senior debt maturity proﬁles are based upon contractual maturity, which may be later than call options over the debt held by the Group
Risk Proﬁle continued
Standard Chartered Bank
104
Directors’ Report and Financ
ial Statements 2024

| 2023
|  | Between | Between |  |  |  | Between |  |
|  | one month | three | Between six | Between | Between | two years | More than |
| One month | and three | months and | months and | nine months | one year and | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | two years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |  |
Cash and balances at |  |  |  |  |  |  |  |  |
central banks | 51,446 | – | – | – | – | – | – | 1,312 | 52,758
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 12,441 | 10,666 | 6,527 | 3,491 | 2,867 | 4,842 | 7,113 | 5,274 | 53,221
Loans and advances |  |  |  |  |  |  |  |  |
to banks 1,2 | 12,528 | 10,389 | 4,157 | 2,431 | 1,675 | 1,431 | 2,082 | 1,097 | 35,790
Loans and advances |  |  |  |  |  |  |  |  |
to customers 1,2 | 39,724 | 18,061 | 16,415 | 7,159 | 6,593 | 9,930 | 9,456 | 12,560 | 119,898
Investment securit ies 1 | 3,575 | 9,204 | 8,090 | 7,419 | 7,179 | 10,918 | 27,202 | 35,926 | 109,513
Investment in subsid iary |  |  |  |  |  |  |  |  |
undertaking | – | – | – | – | – | – | – | 10,066 | 10,066
Other assets | 7,634 | 15,125 | 615 | 183 | 253 | 12 | 35 | 2,993 | 26,850
Due from subsid iary |  |  |  |  |  |  |  |  |
undertakings and |  |  |  |  |  |  |  |  |
other related parties | 10,053 | – | – | – | – | – | – | – | 10,053
Total assets | 137,401 | 63,445 | 35,804 | 20,683 | 18,567 | 27,133 | 45,888 | 69,228 | 418,149
Liab il it ies |  |  |  |  |  |  |  |  |
Deposits by banks 1,3 | 17,512 | 1,140 | 1,035 | 500 | 571 | 1,179 | 2,488 | – | 24,425
Customer accounts 1,4 | 129,023 | 22,499 | 11,447 | 4,496 | 3,020 | 3,905 | 2,221 | 216 | 176,827
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 12,638 | 11,984 | 6,225 | 3,710 | 2,969 | 5,207 | 7,506 | 5,292 | 55,531
Senior debt 5 | 44 | 990 | 1,214 | 758 | 448 | 3,711 | 5,851 | 4,284 | 17,300
Other debt securit ies |  |  |  |  |  |  |  |  |
in issue 1 | 2,876 | 4,813 | 4,810 | 2,921 | 1,754 | 1,688 | 3,191 | 4,941 | 26,994
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 47,317 | – | – | – | – | – | – | – | 47,317
Other liab il it ies | 10,851 | 13,610 | 168 | 6 | 23 | 1,535 | 1,323 | 690 | 28,206
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | – | 12 | 28 | 4 | 28 | 93 | 214 | 10,517 | 10,896
Total liab il it ies | 220,261 | 55,048 | 24,927 | 12,395 | 8,813 | 17,318 | 22,794 | 25,940 | 387,496
Net liqu id ity gap | (82,860) | 8,397 | 10,877 | 8,288 | 9,754 | 9,815 | 23,094 | 43,288 | 30,653

1
Loans and advances, investment securit
ies, depos
its by banks, customer accounts and debt securit
ies
in issue include ﬁnanc
ial
instruments held at fair value through
proﬁt or loss, see Note 12 Financ
ial
instruments
2
Loans and advances include reverse repurchase agreements and other sim
ilar secured lend
ing of $77.6 bill
ion
3
Deposits by banks include repurchase agreements and other sim
ilar secured borrow
ing of $4..8 bill
ion
4
Customer accounts include repurchase agreements and other sim
ilar secured borrow
ing of $46.3 bill
ion
5
Senior debt maturity proﬁles are based upon contractual maturity, which may be later than call options over the debt held by the Group
Risk Proﬁle continued
Standard Chartered Bank
105
Directors’ Report and Financ
ial Statements 2024
Behavioural maturity of ﬁnanc
ial assets and l
iab
il
it
ies
The cashﬂows presented in the previous section reﬂect the cashﬂows that will be contractually payable over the residual
maturity of the instruments. However, contractual maturit
ies do not necessar
ily reﬂect the tim
ing of actual repayments or
cashﬂow. In practice, certain assets and liab
il
it
ies behave d
ifferently 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 qualitat
ive and quant
itat
ive techn
iques,
includ
ing analys
is of observed customer behaviour over time.
Maturity of ﬁnanc
ial l
iab
il
it
ies on an und
iscounted basis (audited)
The following table analyses the contractual cashﬂows payable for the Group’s ﬁnanc
ial l
iab
il
it
ies by rema
in
ing contractual
maturit
ies on an und
iscounted basis. The ﬁnanc
ial l
iab
il
ity balances in the table below will not agree to the balances
reported in the consolidated balance sheet as the table incorporates all contractual cashﬂows, on an undiscounted basis,
relating to both princ
ipal and
interest payments. Derivat
ives not treated as hedg
ing derivat
ives are
included in the
‘On demand’ time bucket and not by contractual maturity.
With
in the ‘More than ﬁve years and undated’ matur
ity band are undated ﬁnanc
ial l
iab
il
it
ies, the majority of wh
ich relate to
subordinated debt, on which interest payments are not included as this informat
ion would not be mean
ingful, given the
instruments are undated. Interest payments on these instruments are included with
in the relevant matur
it
ies up to ﬁve years.
Group

| 2024
|  | Between one | Between |  |  |  | Between |  |
|  | month and | three | Between six | Between | Between one | two years | More than |
| One month | three | months and | months and | nine months | year and two | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Deposits by banks | 21,217 | 2,158 | 1,510 | 800 | 467 | 4,294 | 1,935 | 4 | 32,385
Customer accounts | 222,004 | 25,930 | 15,321 | 5,388 | 6,322 | 6,600 | 2,528 | 457 | 284,550
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments 1 | 81,886 | 23 | 26 | 8 | 3 | 74 | 247 | 310 | 82,577
Debt securit ies in issue | 3,340 | 4,052 | 9,000 | 6,524 | 5,679 | 3,654 | 13,819 | 8,176 | 54,244
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 28,246 |  |  |  |  |  |  |  | 28,246
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | 33 | 132 | 89 | 191 | 89 | 534 | 1,450 | 14,350 | 16,868
Other liab il it ies | 10,019 | 23,101 | 659 | 464 | 125 | 3,925 | 419 | 2,981 | 41,693
Total liab il it ies | 366,745 | 55,396 | 26,605 | 13,375 | 12,685 | 19,081 | 20,398 | 26,278 | 540,563

| 2023
|  | Between | Between |  |  |  | Between |  |
|  | one month | three | Between six | Between | Between | two years | More than |
| One month | and three | months and | months and | nine months | one year and | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | two years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Deposits by banks | 21,997 | 1,643 | 1,102 | 512 | 604 | 1,245 | 2,845 | 4 | 29,952
Customer accounts | 220,861 | 34,791 | 17,728 | 7,905 | 6,238 | 5,100 | 2,663 | 248 | 295,534
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments 1 | 53,511 | 487 | 11 | 2 | 48 | 90 | 438 | 586 | 55,173
Debt securit ies in issue | 3,148 | 6,277 | 6,727 | 4,034 | 2,795 | 5,408 | 9,802 | 8,553 | 46,744
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 31,166 |  |  |  |  |  |  |  | 31,166
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | 47 | 79 | 146 | 154 | 146 | 572 | 1,743 | 17,558 | 20,445
Other liab il it ies | 7,613 | 19,995 | 213 | 21 | 66 | 1,689 | 1,556 | 2,786 | 33,939
Total liab il it ies | 338,343 | 63,272 | 25,927 | 12,628 | 9,897 | 14,104 | 19,047 | 29,735 | 512,953

1 Derivat
ives are on a d
iscounted basis
Risk Proﬁle continued
Standard Chartered Bank
106
Directors’ Report and Financ
ial Statements 2024
Company

| 2024
|  | Between one | Between |  |  |  | Between |  |
|  | month and | three | Between six | Between | Between one | two years | More than |
| One month | three | months and | months and | nine months | year and two | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Deposits by banks | 17,523 | 1,945 | 1,421 | 771 | 456 | 3,511 | 1,883 | – | 27,510
Customer accounts | 126,792 | 14,989 | 7,501 | 2,351 | 3,561 | 5,919 | 2,312 | 438 | 163,863
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments 1 | 82,072 | 23 | 25 | 8 | 3 | 68 | 237 | 309 | 82,745
Debt securit ies in issue | 3,057 | 3,608 | 8,506 | 6,251 | 5,305 | 3,534 | 12,621 | 7,424 | 50,306
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 42,313 |  |  |  |  |  |  |  | 42,313
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | – | 132 | 41 | 191 | 92 | 138 | 1,619 | 14,121 | 16,334
Other liab il it ies | 8,481 | 16,293 | 648 | 432 | 92 | 3,888 | 321 | 1,821 | 31,976
Total liab il it ies | 280,238 | 36,990 | 18,142 | 10,004 | 9,509 | 17,058 | 18,993 | 24,113 | 415,047

| 2023
|  | Between | Between |  |  |  | Between |  |
|  | one month | three | Between six | Between | Between | two years | More than |
| One month | and three | months and | months and | nine months | one year and | and ﬁve | ﬁve years |
| or less | months | six months | nine months | and one year | two years | years | and undated | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Deposits by banks | 17,515 | 1,143 | 1,049 | 509 | 581 | 1,181 | 2,487 | – | 24,465
Customer accounts | 129,577 | 22,647 | 11,602 | 4,637 | 3,128 | 4,081 | 2,426 | 230 | 178,328
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments 1 | 53,886 | 487 | 11 | 2 | 48 | 89 | 422 | 586 | 55,531
Debt securit ies in issue | 2,961 | 5,830 | 6,145 | 3,770 | 2,301 | 6,021 | 9,755 | 9,383 | 46,166
Due to parent companies |  |  |  |  |  |  |  |  |
and other related |  |  |  |  |  |  |  |  |
undertakings | 47,317 |  |  |  |  |  |  |  | 47,317
Subordinated liab il it ies |  |  |  |  |  |  |  |  |
and other borrowed funds | 47 | 79 | 146 | 154 | 146 | 572 | 1,717 | 15,920 | 18,781
Other liab il it ies | 6,425 | 13,573 | 168 | 6 | 23 | 1,535 | 1,323 | 2,343 | 25,396
Total liab il it ies | 257,728 | 43,759 | 19,121 | 9,078 | 6,227 | 13,479 | 18,130 | 28,462 | 395,984

1 Derivat
ives are on a d
iscounted basis
Interest Rate Risk in the Banking Book
The following table provides the estimated impact to a hypothetical base case project
ion of the Group’s earn
ings under
the following scenarios:
–
A 50 basis point parallel interest rate shock (up and down) to the current market-impl
ied path of rates, across all
yield curves
–
A 100 basis point parallel interest rate shock (up and down) to the current market-impl
ied path of rates, across all
yield curves
These interest rate shock scenarios assume all other economic variables remain constant. The sensit
iv
it
ies shown represent
the estimated change to a hypothetical base case projected net interest income (NII), plus the change in interest rate impl
ied
income and expense from FX swaps used to manage banking book currency posit
ions, under the d
ifferent interest rate
shock scenarios.
The base case projected NII is based on the current market-impl
ied path of rates and forward rate expectat
ions. The NII
sensit
iv
it
ies below stress th
is base case by a further 50 or 100bps. Actual observed interest rate changes will likely differ from
market expectation. Accordingly, the shocked NII sensit
iv
ity does not represent a forecast of the Group’s net interest income.
The interest rate sensit
iv
it
ies are
ind
icat
ive stress tests and based on simpl
iﬁed scenar
ios, estimat
ing the aggregate
impact
of an unantic
ipated,
instantaneous parallel shock across all yield curves over a one-year horizon, includ
ing the t
ime taken
to implement changes to pric
ing before becom
ing effective. The assessment assumes that the size and mix of the
balance sheet remain constant and that there are no specif
ic management act
ions in response to the change in rates.
No assumptions are made in relation to the impact on credit spreads in a changing rate environment.
Risk Proﬁle continued
Standard Chartered Bank
107
Directors’ Report and Financ
ial Statements 2024
Sign
iﬁcant modell
ing and behavioural assumptions are made regarding scenario simpl
iﬁcation, market compet
it
ion,
pass-through rates, asset and liab
il
ity re-pric
ing tenors, and pr
ice ﬂooring. In particular, the assumption that interest rates
of all currencies and maturit
ies sh
ift by the same amount concurrently, and that no actions are taken to mit
igate the
impacts
aris
ing from th
is are considered unlikely. Reported sensit
iv
it
ies w
ill vary over time due to a number of factors includ
ing
changes in balance sheet composit
ion, market cond
it
ions, customer behav
iour and risk management strategy. Therefore,
while the NII sensit
iv
it
ies are a relevant measure of the Group’s
interest rate exposure, they should not be considered an
income or proﬁt forecast.

| 2024
|  |  |  |  | Other |
Estimated one-year impact to earnings from a parallel shift in | USD bloc | SGD bloc | EUR bloc | INR bloc | currency bloc | Total
yield curves at the beginn ing of the per iod of | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
+ 50 basis points | 20 | 10 | 10 | 30 | 50 | 120
- 50 basis points | (20) | (20) | (10) | (30) | (60) | (140)
+ 100 basis points | 30 | 20 | 20 | 40 | 110 | 220
- 100 basis points | (50) | (40) | (20) | (40) | (130) | (280)
| 2023
+ 50 basis points | 70 | 50 | 20 | 20 | 100 | 260
- 50 basis points | (100) | (50) | (30) | (30) | (90) | (300)
+ 100 basis points | 150 | 100 | 40 | 40 | 180 | 510
- 100 basis points | (190) | (100) | (50) | (60) | (180) | (580)

As at 31 December 2024, 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 $120 mill
ion. The equ
ivalent impact from a parallel decrease of 50 basis
points would result in a reduction in projected NII of $140 mill
ion. The Group est
imates the one-year impact of an
instantaneous, parallel increase across all yield curves of 100 basis points to increase projected NII by $220 mill
ion. The
equivalent impact from a parallel decrease of 100 basis points would result in a reduction in projected NII of $280 mill
ion.
The beneﬁt from ris
ing
interest rates is primar
ily from re
invest
ing at h
igher yields and from assets re-pric
ing faster and to a
greater extent than deposits. NII sensit
iv
ity in falling rate scenarios has decreased versus 31 December 2023, due to an
increase in programmatic hedging as well as actions taken in discret
ionary portfol
ios to increase asset duration.
Operational and Technology Risk
Operational and Technology Risk proﬁle
The implementat
ion of standard
ised Non-Financ
ial r
isk, control and causal taxonomies is enabling improved risk
aggregation and reporting, and has provided opportunit
ies for s
impl
ify
ing the process for risk ident
iﬁcation and assessment
in the Group.
Operational and Technology Risk is elevated in areas such as Change Mismanagement Risk and Third-Party Risk
Management, which are subject to ongoing control enhancement programmes. Other key areas of focus are Systems
Health/Technology Risk, Operational Resil
ience and Regulatory Compl
iance. To address these areas, the Group has focused
on improv
ing the susta
inable operating environment and has in
it
iated several programmes to enhance the control
environment. The Group continues to monitor and manage Operational and Technology risks associated with the external
environment such as geopolit
ical factors, the
increas
ing r
isk of cyber-attacks and inappropr
iate use of Art
if
ic
ial Intelligence.
This enables the Group to keep pace with the new business developments, whilst ensuring that its risk and control
frameworks evolve accordingly. The Group continues to strengthen its risk management to understand the full spectrum
of risks in the operating environment, enhance its defences and improve resil
ience.
Risk Proﬁle continued
Standard Chartered Bank
108
Directors’ Report and Financ
ial Statements 2024
Operational Risk events and losses
Operational losses are one ind
icator of the effect
iveness and robustness of our non-ﬁnanc
ial r
isk and control environment.
The Group’s proﬁle of operational loss events in 2024 and 2023 is summarised in the table below, which shows the distr
ibut
ion
of gross operational losses by Basel business line. There has been a sharp increase in Corporate Items in 2024 due to a single
large event pertain
ing to F
inance Accounting Adjustment.

| % Loss
Distr ibut ion of Operational Losses by Basel business line | 2024 | 2023¹
Agency Services | 0.0% | 2.1%
Asset Management | 0.0% | 0.0%
Commercial Banking | 1.6% | 8.5%
Corporate Finance | 0.0% | 9.0%
Corporate Items | 86.2% | 42.1%
Payment and Settlements | 7.7% | 11.3%
Retail Banking | 2.9% | 16.8%
Retail Brokerage | 0.0% | 0.0%
Trading and Sales | 1.6% | 10.2%

1
Losses in 2023 have been restated to include incremental events recognised in 2024
The Group’s proﬁle of operational loss events in 2024 and 2023 is also summarised by Basel event type in the table below.
It shows the distr
ibut
ion of gross operational losses by Basel event type.

| % Loss
Distr ibut ion of Operational Losses by Basel event type | 2024 | 2023¹
Business disrupt ion and system fa ilures | 0.8% | 5.4%
Clients’ products and business practices | 1.0% | 0.9%
Damage to physical assets | 0.0% | 0.0%
Employment practices and workplace safety | 0.1% | 0.1%
Execution delivery and process management | 96.5% | 80.9%
External fraud | 1.5% | 12.5%
Internal fraud | 0.1% | 0.2%

1
Losses in 2023 have been restated to include incremental events recognised in 2024
Other princ
ipal r
isks
The losses aris
ing from operat
ional failures for other princ
ipal and
integrated risks are reported as operational losses.
Operational losses do not include operational risk-related credit impa
irments.
Capital review
Standard Chartered Bank
109
Directors’ Report and Financ
ial Statements 2024
Capital management and governance
Capital disclosures in this document are provided on the basis of Standard Chartered Bank (Group), being Standard
Chartered Bank and its subsid
iar
ies.
Standard Chartered Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financ
ial Conduct
Authority (FCA).
Capital requirements are set by the PRA for Standard Chartered Bank on a solo-consolidat
ion bas
is. The solo-consolidated
group differs from Standard Chartered Bank (Company) in that it includes the full consolidat
ion of four subs
id
iar
ies, namely
Standard Chartered Holdings (International) B.V., Standard Chartered Grindlays PTY Lim
ited, SCMB Overseas L
im
ited and
Corrasi Covered Bonds LLP.
The Group continues to operate through its branches and various subsid
iar
ies, all of which remain well-capital
ised
in
accordance with their applicable regulatory requirements.
The Group’s CET1 capital ratio increased by 12bps to 13.3 per cent at 31 December 2024 with a leverage ratio of 5.1 per cent.
The Group mainta
ins h
igh levels of loss absorbing capacity.
RWAs increased by $3.6 bill
ion to $169.2 b
ill
ion. CET1 cap
ital increased by $0.7 bill
ion to $22.5bn dr
iven primar
ily by proﬁts of
$3 bill
ion, lower regulatory deduct
ions of $0.6 bill
ion largely from
intang
ible assets and movements
in other comprehensive
income of $0.2 bill
ion. These
increases were partially offset by distr
ibut
ions of $2.7 bill
ion and the fore
ign currency translation
impact of $0.4 bill
ion.
Capital ratios

| 2024 | 2023
CET1 capital | 13.3% | 13.2%
Tier 1 capital | 16.8% | 16.5%
Total capital | 23.0% | 23.5%

Capital review continued
Standard Chartered Bank
110
Directors’ Report and Financ
ial Statements 2024
Capital base
1
(audited)

| 2024 | 2023
| $mill ion | $mill ion
CET1 capital instruments and reserves |  |
Capital instruments and the related share premium accounts | 20,893 | 20,893
Of which: share premium accounts | 296 | 296
Retained earnings | 10,215 | 9,687
Accumulated other comprehensive income (and other reserves) | (6,939) | (6,508)
Non-controlling interests (amount allowed in consolidated CET1) | 178 | 162
Independently audited year-end proﬁts | 2,953 | 3,208
Foreseeable div idends | (193) | (166)
CET1 capital before regulatory adjustments | 27,107 | 27,276
CET1 regulatory adjustments |  |
Addit ional value adjustments (prudent ial valuation adjustments) | (426) | (534)
Intangible assets (net of related tax liab il ity) | (3,675) | (4,115)
Deferred tax assets that rely on future proﬁtabil ity (excludes those aris ing from temporary d ifferences) | (30) | (23)
Fair value reserves related to net losses on cash ﬂow hedges | (8) | 13
Deduction of amounts resulting from the calculation of excess expected loss | (417) | (566)
Net gains on liab il it ies at fa ir value resulting from changes in own credit risk | 246 | (47)
Deﬁned-beneﬁt pension fund assets | (115) | (75)
Fair value gains aris ing from the inst itut ion’s own credit risk related to derivat ive l iab il it ies | (91) | (107)
Exposure amounts which could qualify for risk weight ing of 1250% | (116) | (28)
Total regulatory adjustments to CET1 | (4,632) | (5,482)
CET1 capital | 22,475 | 21,794
Addit ional T ier 1 capital (AT1) instruments² | 5,917 | 5,473
AT1 regulatory adjustments | (20) | (20)
Tier 1 capital | 28,372 | 27,247
Tier 2 capital instruments | 10,583 | 11,637
Tier 2 regulatory adjustments | (30) | (30)
Tier 2 capital | 10,553 | 11,607
Total capital | 38,925 | 38,854
Total risk-weighted assets (unaudited) | 169,223 | 165,623

1
Capital base is prepared on the regulatory scope of consolidat
ion
2
Includes Instrument issued by subsid
iar
ies that are given recognit
ion
in AT1 Capital
Leverage ratio

| 2024 | 2023
Capital and total exposures | $mill ion | $mill ion
Tier 1 capital | 28,372 | 27,247
Total leverage ratio exposures | 559,409 | 544,061
Leverage ratio | 5.1% | 5.0%

Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
111
Independent Auditor’s report
to the members of Standard Chartered Bank
Opin
ion
In our opin
ion:
•
Standard Chartered Bank’s group ﬁnancial statements and parent company ﬁnancial statements (the “ﬁnancial
statements”) give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December
2024 and of the group’s proﬁt for the year then ended;
•
the group ﬁnancial statements have been properly prepared
in accordance with UK-adopted International Accounting
Standards (UK IAS) and International Financ
ial Report
ing Standards (IFRS) as adopted by the European Union (EU IFRS);
•
the parent company ﬁnancial statements have been properly prepared
in accordance with UK IAS as applied in
accordance with section 408 of the Companies Act 2006; and
•
the ﬁnancial statements have been prepared
in accordance with the requirements of the Companies Act 2006.
We have audited the ﬁnanc
ial statements of Standard Chartered Bank (the ‘Company’ or the ‘Parent Company’) and
its
subsid
iar
ies, interests in associates, and jo
intly controlled ent
it
ies (together w
ith the Company—the ‘Group’) for the year
ended 31 December 2024 which comprise:

Group | Company
Consolidated income statement for the year ended 31 December 2024; | Balance sheet as at 31 December 2024;
Consolidated statement of comprehensive income for the year then ended; | Cash ﬂow statement for the year then ended;
Consolidated balance sheet as at 31 December 2024; | Statement of changes in equity for the year then ended; and
Consolidated statement of changes in equity for the year then ended; | Related notes 1 to 40 to the ﬁnancial statements, includ ing:
| material accounting policy informat ion.
Consolidated cash ﬂow statement for the year then ended; |
Related notes 1 to 40 to the ﬁnancial statements, includ ing: mater ial |
accounting policy informat ion; |
Risk and capital disclosures marked as ‘audited’ from page 44 to |
page 110. |

The ﬁnancial report
ing framework that has been applied in their preparation is applicable law and UK IAS and EU IFRS; and
as regards the Parent Company ﬁnancial statements, UK IAS as appl
ied in accordance with section 408 of the Companies
Act 2006.
Basis for opin
ion
We conducted our audit in accordance with International Standards on Audit
ing (UK) (ISAs (UK)) and appl
icable law. Our
responsib
il
it
ies under those standards are further descr
ibed in the Auditor’s responsib
il
it
ies for the aud
it of the ﬁnanc
ial
statements section of our report. We believe that the audit evidence we have obtained is sufﬁc
ient and appropr
iate to
provide a basis for our opin
ion.
Independence
We are independent of the Group and the Company in accordance with the ethical requirements that are relevant to our
audit of the ﬁnanc
ial statements
in the UK, includ
ing the FRC’s Eth
ical Standard as applied to listed public interest entit
ies,
and we have fulﬁlled our other ethical responsib
il
it
ies
in accordance with these requirements.
The non-audit services prohib
ited by the FRC’s Eth
ical Standard were not provided to the Group or the Company and we
remain independent of the Group and the Company in conducting the audit.
Conclusions relating to going concern
In audit
ing the ﬁnancial statements, we have concluded that the d
irectors’ use of the going concern basis of accounting in
the preparation of the ﬁnanc
ial statements
is appropriate. Our evaluation of the directors’ assessment of the Group and the
Parent Company’s abil
ity to cont
inue to adopt the going concern basis of accounting included:
•
performing a risk assessment to ident
ify factors that could
impact the going concern basis of accounting, includ
ing
considerat
ion of pr
inc
ipal and emerg
ing risks;
•
assessing management’s going concern assessment, includ
ing the Group’s forecast cap
ital, liqu
id
ity, and leverage ratios
over the period of twelve months from 21 February 2025 to evaluate the headroom against min
imum regulatory
requirements and the risk appetite set by the directors;
•
engaging EY valuation and economic special
ists to assess and challenge the reasonableness of assumpt
ions used to
develop the forecasts in the Corporate Plan (5-year forward looking plan of the business) and evaluating the accuracy of
histor
ical forecast
ing;
•
assessing the Group’s funding plan and repayment plan for funding instruments maturing over the period of twelve
months from 21 February 2025;
•
understanding and evaluating credit rating agency ratings;
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
112
Directors’ Report and Financ
ial Statements 2024
•
engaging EY prudential regulatory special
ists to assess the results of management’s stress test
ing, includ
ing cons
iderat
ion
of princ
ipal and emerg
ing risks, on funding, liqu
id
ity, and regulatory capital;
•
review
ing correspondence w
ith prudential regulators and authorit
ies for matters that may
impact the going concern
assessment; and
•
evaluating the going concern disclosure included in note 1 to the ﬁnanc
ial statements to assess that the d
isclosure was
appropriate and in conformity with the reporting standards.
Based on the work we have performed, we have not ident
iﬁed any mater
ial uncertaint
ies relat
ing to events or condit
ions
that, ind
iv
idually or collectively, may cast sign
iﬁcant doubt on the group and the Parent Company’s ab
il
ity to cont
inue as a
going concern for a period of twelve months from 21 February 2025.
Our responsib
il
it
ies and the respons
ib
il
it
ies of the d
irectors with respect to going concern are described in the relevant
sections of this report. However, because not all future events or condit
ions can be pred
icted, this statement is not a
guarantee as to the Group’s abil
ity to cont
inue as a going concern.
Overview of our audit approach

Audit scope | • We performed an audit of the complete ﬁnanc ial informat ion of 6 components in 5 countries and audit
| procedures on specif ic balances for a further 7 components in 6 countries.
| • We performed central procedures for certain audit areas and balances as outlined in Tailor ing the scope
| section of our report.
Key audit matters | • Credit impa irment
| • Impairment of investments in subsid iary undertak ings
| • Valuation of ﬁnanc ial instruments held at fair value with higher risk characterist ics.
Material ity | • Overall Group material ity of $252m wh ich represents 5% of Adjusted Proﬁt before Tax.

An overview of the scope of the parent company and group audits
Tailor
ing the scope
In the current year our audit scoping has been updated to reﬂect the new requirements of ISA (UK) 600 (Revised). We have
followed a risk-based approach when developing our audit approach to obtain sufﬁc
ient appropr
iate audit evidence on
which to base our audit opin
ion. We performed r
isk assessment procedures, with input from our component auditors, to
ident
ify and assess r
isks of material misstatement of the Group ﬁnanc
ial statements and
ident
iﬁed s
ign
iﬁcant accounts and
disclosures. When ident
ify
ing components at which audit work needed to be performed to respond to the ident
iﬁed r
isks of
material misstatement of the Group ﬁnanc
ial statements, we cons
idered our understanding of the Group and its business
environment, the applicable ﬁnanc
ial framework, the Group’s system of
internal control at the entity level, the existence of
centralised processes, IT applicat
ion env
ironment, and any relevant internal audit results.
We took a centralised approach to audit
ing certa
in processes and controls, as well as the substantive testing of specif
ic
balances. This included audit work over the Group’s Global Business Services shared services centre (SSC), Corporate and
Investment Banking (CIB) SSC, Credit Impairment SSC and Technology.
We determined that centralised audit procedures can be performed across certain components for the key audit matters
outlined later in this report, and for other audit areas, includ
ing: Revenue recogn
it
ion; Management overr
ide of controls;
Technology costs; Legal and regulatory matters; Impairment of goodwill; Going concern and long-term viab
il
ity; Deﬁned
beneﬁt pension obligat
ions; Hedge account
ing; Climate risk; Centralised reconcil
iat
ions; Share based payments; Onerous
contracts, includ
ing
impa
irment of leased propert
ies; Taxation; IT matters, and certain restructuring and transformation
programmes.
In addit
ion to the above areas, for selected components
in Germany, Japan, South Africa, Iraq and Singapore, the primary
audit engagement team (the "Primary Audit Team") performed certain procedures centrally over the cash balances as at 31
December 2024. These components are separate to those described below.
We ident
iﬁed 13 components
in 10 countries as ind
iv
idually relevant to the Group due a sign
iﬁcant r
isk or an area of higher
assessed risk of material misstatement of the group ﬁnanc
ial statements be
ing associated with the components, or due to
ﬁnancial s
ize of the component relative to the group.
For those ind
iv
idually relevant components, we ident
iﬁed the s
ign
iﬁcant accounts where aud
it work needed to be performed
at these components by applying professional judgement, having considered the group sign
iﬁcant accounts on wh
ich
centralised procedures are performed, the reasons for ident
ify
ing the ﬁnanc
ial report
ing component as an ind
iv
idually
relevant component and the size of the component’s account balance relative to the group sign
iﬁcant ﬁnancial statement
account balance.
We then considered whether the remain
ing group s
ign
iﬁcant account balances that are not subject to aud
it procedures, in
aggregate, could give rise to a risk of material misstatement of the group ﬁnanc
ial statements.
Having ident
iﬁed the components for wh
ich work will be performed, we determined the scope to assign to each component.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
113
Directors’ Report and Financ
ial Statements 2024
Of the 13 components selected, we designed and performed audit procedures on the entire ﬁnanc
ial
informat
ion of 6
components (“full scope components”). For 4 components, we designed and performed audit procedures on specif
ic
sign
iﬁcant ﬁnancial statement account balances or d
isclosures of the ﬁnanc
ial
informat
ion of the component (“spec
if
ic scope
components”). For the remain
ing 3 components, we performed spec
if
ied aud
it procedures to obtain evidence for one or more
relevant assertions.

| Group's Absolute PBT | Group Total Assets | Group's Absolute Operating Income
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023
Full scope components | 54% | 57% | 84% | 84% | 61% | 62%
Specif ic scope components | 11% | 18% | 4% | 8% | 10% | 18%
Specif ied procedures | 3% | 2% | 0.50% | 0.40% | 3% | 2%
Total | 68% | 77% | 89% | 92% | 74% | 82%

Of the remain
ing components that together represent 32% of the Group’s absolute PBT, none are
ind
iv
idually greater than
3.1% of the Group’s absolute PBT. For certain of these components, we performed other procedures at the Group level which
included: performing analytical reviews at the Group ﬁnanc
ial statement l
ine item level, evaluating entity level controls,
performing audit procedures on the centralised shared service centres, testing of consolidat
ion journals and
intercompany
elim
inat
ions, inqu
ir
ing with certain overseas EY teams on the outcome of prior year local statutory audits (where audited by
EY) to ident
ify any potent
ial risks of material misstatement to the Group ﬁnanc
ial statements. We also had regard for the
extent of centralised procedures in respect of key audit matters.
Involvement with component teams
In establish
ing our overall approach to the Group aud
it, we determined the type of work that needed to be undertaken at
each of the components by us, as the Primary Audit Team, or by component auditors from other ﬁrms operating under our
instruct
ion. All of the d
irect components of the Group (full, specif
ic or spec
if
ied procedures) were aud
ited by EY global
network ﬁrms.
Audit procedures were performed on 2 full scope components (includ
ing the aud
it of the Company) directly by the Primary
Audit Team (EY London) in the United Kingdom. Where components were audited by the Primary Audit Team, this was under
the direct
ion and superv
is
ion of the Sen
ior Statutory Auditor. For the remain
ing 11 components, where the work was
performed by component auditors, we determined the appropriate level of involvement to enable us to determine that
sufﬁcient aud
it evidence had been obtained as a basis for our opin
ion on the Group as a whole.
In addit
ion to the above, the Pr
imary Audit Team also performed full-scope audit procedures on components related to the
Group consolidat
ion process.
In addit
ion, the Group has central
ised processes and controls over key areas in its shared service centres. Members of the
Primary Audit Team undertook direct oversight, review and coordinat
ion of our shared serv
ice centre audits. The Primary
Audit Team continued to follow a programme of planned vis
its to component teams and shared serv
ice centres. During the
current year’s audit cycle, vis
its were undertaken by the Pr
imary Audit Team to the component teams in the following
locations:
•
India (includ
ing the shared serv
ices centre)
•
Malaysia (includ
ing the shared serv
ices centre)
• Pakistan
•
Singapore (includ
ing the shared serv
ices centre)
• United Arab Emirates
• United States of America
These vis
its
involved discuss
ing the aud
it approach with the component team and any issues aris
ing from the
ir work, meeting
with local management, attending planning and closing meetings, and review
ing relevant aud
it working papers on risk
areas. In addit
ion to the s
ite vis
its, the Pr
imary Audit Team interacted regularly with the component and SSC audit teams
where appropriate during various stages of the audit, reviewed relevant working papers and deliverables to the Primary
Audit Team, and were responsible for the scope and direct
ion of the aud
it process.
The Primary Audit Team also undertook video conference meetings with component and SSC audit teams and
management. These virtual meetings involved discuss
ing the aud
it approach and any issues aris
ing from the
ir work, as well
as performing remote reviews of key audit workpapers.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
114
Directors’ Report and Financ
ial Statements 2024
This, together with the procedures performed at Group level, gave us appropriate evidence for our opin
ion on the Group and
Company ﬁnancial statements.
Climate change
Stakeholders are increas
ingly
interested in how climate change will impact the economy, includ
ing the bank
ing sector, and
further how this may consequently impact the valuation of assets and liab
il
it
ies held on bank balance sheets. The Group
manages climate risk according to the characterist
ics of the
impacted risk types and is embedding climate-risk
considerat
ions
into relevant frameworks, includ
ing pr
inc
ipal r
isk type frameworks, and processes. The assessment of the risk
by the Group is explained on page 56 in the 'Risk proﬁle: Climate Risk’ section, and in the Strategic Report on pages 33 to 35,
where management has also explained their climate commitments.
All of these disclosures form part of the ‘Other informat
ion’, rather than the aud
ited ﬁnanc
ial statements. Our procedures on
these unaudited disclosures therefore consisted solely of consider
ing whether they are mater
ially incons
istent w
ith the
ﬁnancial statements or our knowledge obta
ined in the course of the audit, or otherwise appear to be materially misstated, in
line with our responsib
il
it
ies on ‘Other
informat
ion’.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any
consequential material impact on its ﬁnanc
ial statements.
The Group has explained in the strategic report how they have reﬂected the impact of climate change in their ﬁnanc
ial
statements, includ
ing how th
is aligns with their commitment to the aspirat
ions of the Par
is Agreement to achieve net zero
emiss
ions by 2050. S
ign
iﬁcant judgements and est
imates relating to climate change are included in the section ‘Climate
change impact on the Group’s balance sheet’ of note 1 to the ﬁnanc
ial statements. As stated
in these disclosures, the Group
has considered Climate change to be an area which can impact accounting estimates and judgements through the
uncertainty of future events and the impact of that uncertainty on the Group’s assets and liab
il
it
ies.
Our audit effort in consider
ing the
impact of climate change on the ﬁnanc
ial statements was focused on evaluat
ing whether
management’s assessment of the impact of climate risk has been appropriately reﬂected in the valuation of assets and
liab
il
it
ies, where these can be rel
iably measured, following the currently effective requirements of UK IAS and EU IFRS. This
was in the context of the Group’s process being lim
ited, g
iven that this is an emerging area, as a result of lim
itat
ions in the
data available and the nascent modelling capabil
it
ies, and as the Group considers how it further embeds its climate
ambit
ions
into the planning process.
As part of this evaluation, we performed our own risk assessment, supported by our climate change internal special
ists, to
determine the risks of material misstatement in the ﬁnanc
ial statements from cl
imate change which needed to be
considered in our audit.
We also challenged the Directors’ considerat
ions of cl
imate change risks in their assessment of going concern and viab
il
ity,
and the associated disclosures. Where considerat
ions of cl
imate change were relevant to our assessment of going concern,
these are described above.
Based on our work, we have considered the impact of climate change on the ﬁnanc
ial statements to
impact certain key audit
matters. Details of our procedures and ﬁnd
ings are
included in our explanation of key audit matters below.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most sign
iﬁcance
in our audit of the ﬁnanc
ial
statements of the current period and include the most sign
iﬁcant assessed r
isks of material misstatement (whether or not
due to fraud) that we ident
iﬁed. These matters
included those which had the greatest effect on: the overall audit strategy,
the allocation of resources in the audit; and direct
ing the efforts of the engagement team. These matters were addressed
in
the context of our audit of the ﬁnanc
ial statements as a whole, and
in our opin
ion thereon, and we do not prov
ide a separate
opin
ion on these matters.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
115
Directors’ Report and Financ
ial Statements 2024
Risk
Our response to the risk
Credit Impairment
Refer to Note 8 of the ﬁnancial statements; and
relevant credit risk disclosures (includ
ing pages
58 to 95)
At 31 December 2024, the Bank reported total
credit impa
irment balance sheet prov
is
ion of
$3,204 mill
ion (2023: $3,788 m
ill
ion).
Management’s judgements and estimates are
highly subject
ive as a result of the s
ign
iﬁcant
uncertainty associated with the estimat
ion of
expected future credit losses. Assumptions with
increased complexity in respect of the tim
ing and
measurement of expected credit losses (ECL)
include:
•
Staging
– the determinat
ion of what
constitutes sign
iﬁcant
increase in credit risk
and consequent timely allocation of qualify
ing
assets to the appropriate stage in accordance
with IFRS 9;
•
Model output and adjustments
– Accounting
interpretat
ions, modell
ing assumptions and
data used to develop, monitor and run the
models that calculate the ECL, includ
ing the
appropriateness, completeness and valuation
of post-model adjustments applied to model
output to address ident
iﬁed model deﬁcienc
ies
or risks not fully captured by the models;
•
Economic scenarios
– Sign
iﬁcant judgements
involved in the determinat
ion of the
appropriateness of economic variables, the
future forecasting of these variables and the
parameters used in both the base case
forecast and the Monte Carlo Simulat
ion. The
assessment of non-linear
ity produced by the
Monte Carlo simulat
ion, the benchmark
ing of
the output to backstop discrete scenarios and
the evaluation of the need for any Post Model
adjustments;
•
Management overlays
– Appropriateness,
completeness and valuation of risk event
overlays to capture risks not ident
iﬁed by the
credit impa
irment models,
includ
ing the
considerat
ion of the r
isk of management
override; and
•
Indiv
idually assessed ECL allowances
–
Measurement of ind
iv
idual provis
ions
includ
ing
the assessment of probabil
ity we
ighted
recovery scenarios, exit strategies, collateral
valuations, expected future cashﬂows and the
tim
ing of these cashﬂows.
In 2024, the most material factors impact
ing the
ECL were in relation to geopolit
ical uncerta
inty
and the continu
ing
impact of higher interest
rates and inﬂat
ion. In add
it
ion, we have
considered the impact of climate on the
impa
irment prov
is
ions.
Overall, in line with the prior year the level of
judgement and estimat
ion rema
ins elevated as a
result of the factors above and consequently the
risk of a material misstatement to the ECL
remained consistent with that of the prior year.
We evaluated the design of controls relevant to the Bank’s systems and processes
over material ECL balances, involv
ing EY spec
ial
ists to ass
ist us in performing our
procedures where relevant. Based on our evaluation we selected the controls upon
which we intended to rely and tested those for operating effectiveness.
We performed an overall stand-back assessment of the ECL allowance in total and
by stage to determine if the ECL was reasonable. We considered the overall credit
quality of the Bank’s portfolios, risk proﬁle, the impact of sovereign risk, and the
impact of higher interest rates for longer in certain markets. We performed peer
benchmarking to the extent that this was considered relevant and invest
igated and
sought explanations for any areas ident
iﬁed as be
ing outliers. Our assessment also
included the evaluation of the macroeconomic environment by consider
ing trends
in
the economies and countries to which the Bank is exposed.
Staging
– We evaluated the criter
ia used to determ
ine sign
iﬁcant
increase in credit
risk includ
ing quant
itat
ive backstops w
ith the resultant allocation of ﬁnanc
ial assets
to stage 1, 2 or 3 in accordance with IFRS 9. We reperformed the staging distr
ibut
ion
for a sample of ﬁnancial assets and assessed the reasonableness of stag
ing
downgrades applied by management. We assessed the appropriateness of changes
to the staging criter
ia.
To test the completeness of the ident
iﬁcation of s
ign
iﬁcant
increase in credit risk, we
challenged the credit risk ratings (includ
ing appropr
iate operation of quantitat
ive
backstops) for a sample of performing accounts and other accounts exhib
it
ing risk
characterist
ics such as ﬁnancial d
iff
iculty, deferment of payment, late payment and
heightened risk accounts appearing on the watchlist.
Modelled output and adjustments
– With the support of our EY credit risk modelling
special
ists, we performed a r
isk assessment on models involved in the ECL calculation
using EY independently determined quantitat
ive and qual
itat
ive cr
iter
ia and used th
is
risk rating as a basis to select a sample of models to test. Based on this risk
assessment, we evaluated a sample of ECL models by assessing the reasonableness
of underpinn
ing assumpt
ions, inputs and formulae used. This included a combinat
ion
of assessing the appropriateness of model design, model implementat
ion and
validat
ion, sens
it
iv
ity testing and recalculating the Probabil
ity of Default, Loss G
iven
Default and Exposure at Default parameters. Together with our modelling special
ists,
we also assessed material post-model adjustments that were applied as a response
to risks not fully captured by the models or for known model deﬁc
ienc
ies. This included
the completeness and appropriateness of these adjustments.
We did not rely on controls over model monitor
ing and therefore adopted a
substantive approach compris
ing reperformance of model mon
itor
ing procedures for
models classif
ied as s
ign
iﬁcant or h
igher risk in accordance with our EY independent
risk assessment.
In response to the Bank’s model simpl
iﬁcation program that resulted
in a number of
low risk or immater
ial models mov
ing to a loss rate approach, we challenged whether
there was a need for an overlay as result of the models no longer includ
ing a forward
looking element as required by IFRS 9.
To evaluate data quality, we performed sample testing over the completeness and
accuracy of key data elements assessed to be material to the modelled ECL output,
back to source evidence.
Economic scenarios
– In collaboration with our economists, we challenged the
completeness and appropriateness of the macroeconomic variables used as inputs to
the ECL models.
Addit
ionally, we
involved our economic special
ists to ass
ist us in evaluating the
reasonableness of the base forecast for a sample of macroeconomic variables most
relevant for the Bank’s ECL calculation. Procedures performed included benchmarking
the forecast for a sample of macroeconomic variables to peers, histor
ical data and a
variety of global external sources. We assessed the output for a sample of economic
variables across different markets from the Monte Carlo simulat
ion for
reasonableness. We reviewed and challenged the appropriateness of the underlying
coding, assumptions, and output of the Monte Carlo simulat
ion.
We assessed the reasonableness of the non-linear
ity
impact on ECL allowances. We
engaged our economists, to assess and challenge the Bank’s choice of discrete
scenarios to benchmark the output from the Monte Carlo model and determine the
sensit
iv
ity analysis as set out from page 91 in the annual report. This challenge
included the choice of narrative scenarios and the weights applied to each scenario.
We also performed a stand-back assessment by benchmarking the uplift and overall
ECL charge and provis
ion coverage to peers.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
116
Directors’ Report and Financ
ial Statements 2024
Risk
Our response to the risk
Credit Impairment (continued)
Management overlays
– We challenged the completeness and appropriateness of
overlays used for risks not captured by the models, includ
ing an assessment of the
impact of ongoing polit
ical unrest
in Bangladesh. Our procedures included assessing
the need for management overlays, evaluating the assumptions and judgments used
to determine the overlays taking current market condit
ions
into account, and
computing independent ranges where appropriate.
In addit
ion, w
ith the support from our climate risk modelling special
ists we evaluated
the in
it
ial ECL produced by management’s models and assessed the appropriateness
of the adjustments to the model output to determine the overall climate overlay.
Indiv
idually assessed ECL allowances
– We selected a sample of ind
iv
idually assessed
provis
ions to recalculate. Our recalculat
ion procedures included challenging
management’s forward looking economic assumptions of the recovery outcomes
ident
iﬁed, cashﬂow proﬁles and t
im
ings and the
ind
iv
idual probabil
ity we
ight
ings
used for each scenario.
We also engaged our valuation special
ists to test the value of the collateral used
in
management’s calculations on a sample basis.
Key observations communicated to the Audit Committee
We communicated that we are satisf
ied the Bank’s ECL prov
is
ions were reasonably est
imated and materially in compliance with IFRS 9.
We highl
ighted the follow
ing matters to the Audit Committee that contributed to our overall conclusion:
•
Our evaluation of the appropriateness of the sign
iﬁcant
increase in credit risk triggers, and the results of our staging reperformance.
•
For ind
iv
idually assessed ECL allowances, the overall reasonableness of the provis
ions,
includ
ing assumpt
ions applied.
•
Our assessment of the appropriateness of post model adjustments and overlays, includ
ing non-l
inear
ity.
•
Our assessment of the appropriateness of the Banks’s models to generate the ECL and staging outcomes includ
ing the
appropriateness and valid
ity of the data used
in the models and to generate the staging and consequent ECL.
•
Our assessment of the appropriateness of the Bank’s climate models to compute the impact of climate related risks on the portfolio,
noting the judgmental nature of the output and that these ﬁrst generation models are expected to evolve sign
iﬁcantly over t
ime.
We also highl
ighted to the Comm
ittee that there remains increased uncertainty and volatil
ity
in determin
ing expected cred
it losses due
to the elevated risks in the macroeconomic and geopolit
ical landscape
How we scoped our audit to respond to the risk and involvement with component teams
For the purposes of determin
ing the scope of work to be conducted centrally and by component teams, we cons
idered the following:
•
The Bank’s material IFRS 9 systems and processes, includ
ing modelled ECL, and where those systems and process were located
•
The Bank’s gross exposure and ECL by jurisd
ict
ion
•
The Bank’s and EY’s independent sovereign risk assessment
•
Jurisd
ict
ion of orig
in for
ind
iv
idual stage 3 exposures
Based on this assessment, we determined that credit related procedures were required to be performed centrally and by 6 full scope, 4
specif
ic scope and 2 spec
if
ied scope locat
ions.
The Group audit team`s involvement with the component teams and procedures performed are detailed in the “Involvement with
component teams” section of our report.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
117
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Risk
Our response to the risk
Impairment assessment of investments in
subsid
iary undertak
ings
Impairment of investments in subsid
iary
undertakings: Accounting polic
ies (page 227);
and Note 31 of the ﬁnancial statements.
In the Parent Company ﬁnancial statements as
at 31 December 2024, the investment in
subsid
iary undertak
ings balance was $10,671
mill
ion (2023: $10,066 m
ill
ion).
On an annual basis, management is required to
perform an assessment for ind
icators of
impa
irment
in respect of investments in
subsid
iary undertak
ings. Where ind
icators of
impa
irment are
ident
iﬁed, the recoverable
amount of the investment should be estimated.
The Group ident
iﬁed
ind
icators of
impa
irment of
investments in subsid
iary undertak
ings, includ
ing
macroeconomic and geopolit
ical factors wh
ich
have an impact on the ﬁnanc
ial pos
it
ion and
performance of the subsid
iar
ies.
In assessing for ind
icators of
impa
irment, among
other procedures, management compares the
Net Asset Value (‘NAV’) of the subsid
iary to the
carrying value of each direct subsid
iary of the
Parent Company. Where the net assets do not
support the carrying value, the recoverable
amount is estimated by determin
ing the h
igher
of VIU or fair value less cost to sell.
Where the recoverable amount is based on the
VIU, this is modelled by reference to future
cashﬂow forecasts (proﬁt forecast includ
ing a
regulatory capital haircut adjustment), discount
rates and macroeconomic assumptions such as
long-term growth rates.
There is a risk that if the judgements and
assumptions underpinn
ing the
impa
irment
assessments are inappropr
iate, then the
investments in subsid
iar
ies balances may be
misstated.
The level of risk remains consistent with the prior
year.
We obtained an understanding of management’s process and evaluated the design
of controls. Our audit strategy was fully substantive.
We assessed the appropriateness of the Group’s methodology for testing the
impa
irment of
investments in subsid
iary undertak
ings for compliance with accounting
standards.
We agreed the NAV of the subsid
iar
ies to their carrying value to conﬁrm impa
irment
or reversal of impa
irment recogn
ised in the Parent`s Company ﬁnanc
ial results.
We agreed the inputs in the VIU model to their source and tested the mathematical
accuracy of the VIU model. We engaged EY special
ists to support the aud
it team in
assessing reasonableness of the regulatory haircut adjustment to future proﬁtab
il
ity
forecasts and calculating an independent range for assumptions underlying the VIU
calculations, such as the discount rate and long-term growth rate.
We also reconciled the future proﬁtab
il
ity forecasts of each subsid
iary to the Group’s
approved Corporate Plan (‘the Plan’). We engaged our special
ist team to determ
ine
the reasonableness of the forward macroeconomic inputs used in the Plan.
We assessed the appropriateness of disclosures for impa
irment of
investments in
subsid
iary undertak
ings in accordance with IAS 36.
Key observations communicated to the Audit Committee
Investments in subsid
iary undertak
ings balance reported in the Parent Company ﬁnanc
ial statements and the assoc
iated disclosures,
are not materially misstated as at 31 December 2024.
How we scoped our audit to respond to the risk and involvement with component teams
All audit work performed to address this risk was materially undertaken centrally by the Group audit team.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
118
Directors’ Report and Financ
ial Statements 2024
Risk
Our response to the risk
Valuation of ﬁnanc
ial
instruments held at fair
value with higher risk characterist
ics
Refer to the Accounting polic
ies (page 130); and
Note 12 of the ﬁnancial statements.
At 31 December 2024, the Group reported
ﬁnancial assets measured at fa
ir value of
$245,417 mill
ion (2023: $212,208 m
ill
ion), and
ﬁnancial l
iab
il
it
ies at fa
ir value of $145,506 mill
ion
(2023: $120,992 mill
ion), of wh
ich ﬁnanc
ial assets
of $5,288 mill
ion (2023: $4,234 m
ill
ion) and
ﬁnancial l
iab
il
it
ies of $2,016 m
ill
ion (2023: $1,591
mill
ion) are class
if
ied as Level 3
in the fair value
hierarchy.
The fair value of ﬁnanc
ial
instruments with higher
risk characterist
ics
involves the use of
management judgement in the selection of
valuation models and techniques, pric
ing
inputs
and assumptions and fair value adjustments. A
higher level of estimat
ion uncerta
inty is involved
for ﬁnancial
instruments valued using complex
models; pric
ing
inputs that have lim
ited
observabil
ity; and fa
ir value adjustments,
includ
ing the Cred
it Valuation Adjustments for
ill
iqu
id counterparties.
We considered the following portfolios
presented a higher level of estimat
ion
uncertainty:
•
Derivat
ives: Level 3 and certa
in Level 2
derivat
ives (
includ
ing those embedded w
ith
in
customer accounts, debt securit
ies
in issue, and
deposits by banks) whose valuation involves
the use of complex models; and
•
Other Level 3 ﬁnancial
instruments: equity
shares, loans and advances to customers,
reverse repurchase agreements and other
sim
ilar secured lend
ing, and debt securit
ies
and other elig
ible b
ills with unobservable
pric
ing
inputs.
The level of risk remains consistent with the prior
year.
We evaluated the design and operating effectiveness of controls relating to the
valuation of ﬁnanc
ial
instruments, includ
ing
independent price verif
icat
ion, model
validat
ion and approval, fa
ir value adjustments, and sign
iﬁcant deal rev
iew.
Among other procedures, we engaged our valuation special
ists to ass
ist the audit
team in performing the following testing on a risk-assessed sample basis:
•
Test valuations dependent on complex models by independently revaluing Level 3
and certain Level 2 derivat
ive ﬁnancial
instruments (includ
ing those embedded
with
in customer accounts, debt secur
it
ies
in issue, and deposits by banks) to assess
the appropriateness of models and the adequacy of assumptions and inputs used
by the Group;
•
Test valuations of other Level 3 ﬁnanc
ial
instruments with higher estimat
ion
uncertainty, such as equity shares, loans and advances to customers, reverse
repurchase agreements and other sim
ilar secured lend
ing, and debt securit
ies and
other elig
ible b
ills. Where appropriate, we compared management’s valuation to
our own independently developed range;
•
Assessed the appropriateness of pric
ing
inputs as part of the IPV process; and
•
Compared the methodology used for fair value adjustments to current market
practice. We revalued a sample of valuation adjustments, compared market inputs
to third party data, and challenged the basis for determin
ing
ill
iqu
id credit spreads.
Where differences between our independent valuation and management’s valuation
were outside our thresholds, we performed addit
ional test
ing to assess the impact on
the valuation of ﬁnanc
ial
instruments.
Throughout our audit procedures we considered the continu
ing uncerta
inty aris
ing
from the current macroeconomic environment. In addit
ion, we assessed whether
there were any ind
icators of aggregate b
ias in ﬁnanc
ial
instrument marking and
methodology assumptions.
Key observations communicated to the Audit Committee
We concluded that assumptions used by management to estimate the fair value of ﬁnanc
ial
instruments with higher risk characterist
ics
and the recognit
ion of related
income were reasonable. We highl
ighted the follow
ing matters to the Audit Committee:
•
We did not ident
ify mater
ial differences aris
ing from our
independent testing of valuations dependent on complex models;
•
The fair values of other Level 3 ﬁnanc
ial
instruments, valued using pric
ing
inputs with lim
ited observab
il
ity, were not mater
ially
misstated as at 31 December 2024, based on our independent calculations; and
•
Valuation adjustments, includ
ing Cred
it Valuation Adjustments for ill
iqu
id counterparties, were appropriate, based on our analysis of
market data and benchmarking of pric
ing
informat
ion.
How we scoped our audit to respond to the risk and involvement with component teams
We performed centralised audit procedures over this risk. These procedures were performed by the Primary Team and CIB SSC, covering
over 98.4% of the risk amount.
In the prior year, our auditor’s report included key audit matters in relation to priv
ileged access management and the
valuation of goodwill. In the current year, following the implementat
ion of management’s remed
iat
ion programme, the r
isk
relating to priv
ileged access has reduced below the threshold for be
ing a key audit matter. Also, due to a reduction of the risk
of material impa
irment of goodw
ill, we no longer consider it a key audit matter.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
119
Directors’ Report and Financ
ial Statements 2024
Our applicat
ion of mater
ial
ity
We apply the concept of material
ity
in planning and performing the audit, in evaluating the effect of ident
iﬁed
misstatements on the audit and in forming our audit opin
ion.
Material
ity
The magnitude of an omiss
ion or m
isstatement that, ind
iv
idually or in the aggregate, could reasonably be expected to
inﬂuence the economic decis
ions of the users of the ﬁnancial statements. Mater
ial
ity prov
ides a basis for determin
ing the
nature and extent of our audit procedures.
We determined material
ity for the Group to be $252 m
ill
ion (2023: $221 m
ill
ion), wh
ich is 5% (2023: 5%) of adjusted proﬁt
before tax. This reﬂects statutory proﬁt before tax adjusted for certain non-recurring items. We believe that adjusted proﬁt
before tax provides us with most appropriate and relevant measure for the users of the ﬁnanc
ial statements, g
iven the Group
is proﬁt making, it is consistent with the wider industry, and it is the standard for listed and regulated entit
ies. Th
is increase
from prior year is driven by an increase in our material
ity bas
is of adjusted proﬁt before tax and is reﬂected in all material
ity
thresholds discussed below.
We determined material
ity for the Parent Company to be $164 m
ill
ion (2023: $155 m
ill
ion), wh
ich is 5% (2023: 5%) of adjusted
proﬁt before tax. We believe that adjusted proﬁt before tax provides us with most relevant and appropriate measure for the
users of the ﬁnancial statements, g
iven the Company is proﬁt making, it is consistent with the wider industry, and it is the
standard for regulated entit
ies.
Material
ity
Adjustments
Starting
basis
•
Reported proﬁt before tax – $4,447 mill
ion
• Non-recurring items: $587 mill
ion
•
Adjusted proﬁt before tax – $5,034 mill
ion
•
Material
ity of $252 m
ill
ion (5% of adjusted proﬁt
before tax)
During the course of our audit, we reassessed in
it
ial material
ity. Th
is assessment resulted in a higher ﬁnal material
ity
calculated based on the actual ﬁnancial performance of the Group for the year.
Performance material
ity
The applicat
ion of mater
ial
ity at the
ind
iv
idual account or balance level. It is set at an amount to reduce to an appropriately
low level the probabil
ity that the aggregate of uncorrected and undetected m
isstatements exceeds material
ity.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement
was that performance material
ity was 50% (2023: 50%) of our plann
ing material
ity, namely $126m (2023: $111m). We have set
performance material
ity at th
is percentage due to a variety of risk assessment factors such as the expectation of
misstatements, internal control environment considerat
ions and other factors such as the global complex
ity of the Group.
Audit work was undertaken at component locations for the purpose of responding to the assessed risks of material
misstatement of the group ﬁnanc
ial statements. The performance mater
ial
ity set for each component
is based on the
relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that
component. In the current year, the range of performance material
ity allocated to components was $16m to $31m (2023:
$11.4m to $22.8m).
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
120
Directors’ Report and Financ
ial Statements 2024
Reporting threshold
An amount below which ident
iﬁed m
isstatements are considered as being clearly triv
ial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of $13m (2023:
$11m), which is set at 5% of planning material
ity, as well as d
ifferences below that threshold that, in our view, warranted
reporting on qualitat
ive grounds.
We evaluate any uncorrected misstatements against both the quantitat
ive measures of mater
ial
ity d
iscussed above and in
light of other relevant qualitat
ive cons
iderat
ions
in forming our opin
ion.
Other informat
ion
The other informat
ion compr
ises the informat
ion
included in the Annual Report set out on pages 1 to 262, includ
ing the
Strategic report (pages 1 to 35), the Directors’ report (pages 36 to 42), the Statement of directors’ responsib
il
it
ies (page 43)
and the informat
ion not marked as ‘aud
ited’ in the Risk review and Capital review section (pages 44 to 110), and the
Supplementary informat
ion,
includ
ing Glossary (pages 245 to 262), other than the ﬁnancial statements and our aud
itor’s
report thereon. The directors are responsible for the other informat
ion conta
ined with
in the annual report.
Our opin
ion on the ﬁnancial statements does not cover the other
informat
ion and, except to the extent otherw
ise explic
itly
stated in this report, we do not express any form of assurance conclusion thereon.
Our responsib
il
ity is to read the other informat
ion and,
in doing so, consider whether the other informat
ion
is materially
incons
istent w
ith the ﬁnanc
ial statements or our knowledge obta
ined in the course of the audit, or otherwise appears to be
materially misstated. If we ident
ify such mater
ial incons
istenc
ies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the ﬁnanc
ial statements themselves. If, based on the work we
have performed, we conclude that there is a material misstatement of the other informat
ion, we are requ
ired to report that
fact.
We have nothing to report in this regard.
Opin
ions on other matters prescr
ibed by the Companies Act 2006
In our opin
ion, based on the work undertaken
in the course of the audit:
•
the informat
ion g
iven in the strategic report and the directors’ report for the ﬁnanc
ial year for wh
ich the ﬁnanc
ial
statements are prepared is consistent with the ﬁnanc
ial statements; and
•
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the
course of the audit, we have not ident
iﬁed mater
ial misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to
report to you if, in our opin
ion:
•
adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been
received from branches not vis
ited by us; or
•
the Parent Company ﬁnancial statements are not
in agreement with the accounting records and returns; or
•
certain disclosures of directors’ remuneration specif
ied by law are not made; or
•
we have not received all the informat
ion and explanat
ions we require for our audit.
Responsib
il
it
ies of d
irectors
As explained more fully in the directors’ responsib
il
it
ies statement set out on page 43, the d
irectors are responsible for the
preparation of the ﬁnanc
ial statements and for be
ing satisf
ied that they g
ive a true and fair view, and for such internal
control as the directors determine is necessary to enable the preparation of ﬁnanc
ial statements that are free from mater
ial
misstatement, whether due to fraud or error.
In preparing the ﬁnanc
ial statements, the d
irectors are responsible for assessing the Group and Parent Company’s abil
ity to
continue as a going concern, disclos
ing, as appl
icable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liqu
idate the Group or the Parent Company or to cease operat
ions, or have no
realist
ic alternat
ive but to do so.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
121
Directors’ Report and Financ
ial Statements 2024
Auditor’s responsib
il
it
ies for the aud
it of the ﬁnanc
ial statements
Our objectives are to obta
in reasonable assurance about whether the ﬁnanc
ial statements as a whole are free from mater
ial
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opin
ion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, ind
iv
idually
or in the aggregate, they could reasonably be expected to inﬂuence the economic decis
ions of users taken on the bas
is of
these ﬁnancial statements.
Explanation as to what extent the audit was considered capable of detecting irregular
it
ies, includ
ing fraud
Irregularit
ies,
includ
ing fraud, are
instances of non-compliance with laws and regulations. We design procedures in line with
our responsib
il
it
ies, outl
ined above, to detect irregular
it
ies, includ
ing fraud. The r
isk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by,
for example, forgery or intent
ional m
isrepresentat
ions, or through collus
ion. The extent to which our procedures are capable
of detecting irregular
it
ies, includ
ing fraud
is detailed below.
However, the primary responsib
il
ity for the prevention and detection of fraud rests with both those charged with governance
of the Company and management.
•
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined
that the most sign
iﬁcant are those that relate to the report
ing framework (UK-adopted IAS and EU IFRS, the Companies
Act 2006), regulations and supervisory requirements of the Prudential Regulation Authority (PRA), FRC, FCA and other
overseas regulatory requirements, includ
ing but not l
im
ited to regulat
ions in its major markets such as India, Singapore, the
United States of America, the United Arab Emirates and the relevant tax compliance regulations in the jur
isd
ict
ions
in
which the Group operates. In addit
ion, we concluded that there are certa
in sign
iﬁcant laws and regulat
ions that may have
an effect on the determinat
ion of the amounts and d
isclosures in the ﬁnanc
ial statements and those laws and regulat
ions
relating to regulatory capital and liqu
id
ity, conduct, ﬁnanc
ial cr
ime includ
ing ant
i-money laundering, sanctions and market
abuse, recognis
ing the ﬁnancial and regulated nature of the Group’s act
iv
it
ies.
•
We understood how the Group is complying with those frameworks by performing a combinat
ion of
inqu
ir
ies of senior
management and those charged with governance as required by audit
ing standards, rev
iew of board and certain
committee meeting minutes, gain
ing an understand
ing of the Group’s approach to governance, inspect
ion of regulatory
correspondence in the year and engaging with internal and external legal counsel. We also engaged EY ﬁnanc
ial cr
ime
and forensics special
ists to perform procedures on areas relat
ing to anti-money laundering, whistleblow
ing, and sanct
ions
compliance. Through these procedures, we became aware of actual or suspected non-compliance. The ident
iﬁed actual or
suspected non-compliance was not sufﬁc
iently s
ign
iﬁcant to our aud
it that would have resulted in it being ident
iﬁed as a
key audit matter.
•
We assessed the susceptib
il
ity of the Group’s ﬁnanc
ial statements to mater
ial misstatement, includ
ing how fraud m
ight
occur by consider
ing the controls that the Group has establ
ished to address risks ident
iﬁed by the ent
ity, or that otherwise
seek to prevent, deter or detect fraud. Our procedures to address the risks ident
iﬁed also
included incorporation of
unpredictab
il
ity into the nature, tim
ing and/or extent of our test
ing, challenging assumptions and judgements made by
management in their sign
iﬁcant account
ing estimates and journal entry testing.
•
Based on this understanding, we designed our audit procedures to ident
ify non-compl
iance with such laws and
regulations. Our procedures involved inqu
ir
ies of the Group’s internal and external legal counsel, money laundering
reporting ofﬁcer, internal audit, certain senior management executives, and focused testing on a sample basis, includ
ing
journal entry testing. We also performed inspect
ion of key correspondence from the relevant regulatory author
it
ies as well
as review of board and committee minutes.
•
For instances of actual or suspected non-compliance with laws and regulations, which have a material impact on the
ﬁnancial statements, these were commun
icated by management to the Group audit engagement team and component
teams (where applicable) who performed audit procedures such as inqu
ir
ies with management, sending conﬁrmat
ions to
external legal counsel, substantive testing and meeting with regulators. Where appropriate, we involved special
ists from
our ﬁrm to support the audit team.
•
The Group is authorised to provide banking, insurance, mortgages and home ﬁnance, consumer credit, pensions,
investments and other activ
it
ies. The Group operates in the banking industry which is a highly regulated environment. As
such, the Senior Statutory Auditor considered the experience and expertise of the Group audit engagement team, the
component teams and the shared service centre teams to ensure that the team had the appropriate competence and
capabil
it
ies, which included the use of special
ists where appropr
iate.
A further descript
ion of our respons
ib
il
it
ies for the aud
it of the ﬁnanc
ial statements
is located on the Financ
ial Report
ing
Council’s website at https://www.frc.org.uk/auditorsrespons
ib
il
it
ies. This descript
ion forms part of our aud
itor’s report.
Independent Auditor’s report
to the members of Standard Chartered Bank continued
Standard Chartered Bank
122
Directors’ Report and Financ
ial Statements 2024
Other matters we are required to address
•
Following the recommendation from the audit committee, we were re-appointed by the Company on 10 May 2024 to audit
the ﬁnancial statements for the year end
ing 31 December 2024 and subsequent ﬁnanc
ial per
iods.
The period of total uninterrupted engagement includ
ing prev
ious renewals and reappointments is ﬁve years, covering the
years ending 31 December 2020 to 31 December 2024.
•
The audit opin
ion
is consistent with the addit
ional report to the aud
it committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsib
il
ity to anyone other than the Company and the Company’s members as a body, for our audit
work, for this report, or for the opin
ions we have formed.
David Canning-Jones (Senior statutory auditor)
For and on behalf of Ernst & Young LLP, Statutory Auditor
London
21 February 2025
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
123
Consolidated income statement
For the year ended 31 December 2024
Notes
2024
$mill
ion
2023
$mill
ion
Interest income
19,310
18,380
Interest expense
(14,910)
(13,773)
Net interest income
3
4,400
4,607
Fees and commiss
ion
income
3,486
3,094
Fees and commiss
ion expense
(824)
(656)
Net fees and commiss
ion
income
4
2,662
2,438
Net trading income
5
5,530
4,100
Other operating income
6
(178)
404
Operating income
12,414
11,549
Staff costs
(6,417)
(6,286)
Premises costs
(254)
(241)
General admin
istrat
ive expenses
(223)
27
Depreciat
ion and amort
isat
ion
(656)
(647)
Operating expenses
7
(7,550)
(7,147)
Operating proﬁt before impa
irment losses and taxat
ion
4,864
4,402
Credit impa
irment
8
(15)
58
Goodwill, property, plant and equipment and other impa
irment
9
(410)
(42)
Proﬁt from associates and jo
int ventures
31
8
(4)
Proﬁt before taxation
4,447
4,414
Taxation
10
(1,465)
(1,177)
Proﬁt for the year
2,982
3,237
Proﬁt attributable to:
Non-controlling interests
28
39
29
Parent company shareholders
2,943
3,208
Proﬁt for the year
2,982
3,237
The notes on pages 130 to 244 form an integral part of these ﬁnanc
ial statements.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
124
Consolidated statement of comprehensive income
For the year ended 31 December 2024
Notes
2024
$mill
ion
2023
$mill
ion
Proﬁt for the year
2,982
3,237
Other comprehensive income
Items that will not be reclassif
ied to
income statement:
(198)
107
Own credit (losses)/gains on ﬁnanc
ial l
iab
il
it
ies des
ignated at fair value through proﬁt or loss
(319)
99
Equity instruments at fair value through other comprehensive income
(6)
110
Actuarial gains on retirement beneﬁt obligat
ions
29
26
(27)
Revaluation Surplus
9
–
Taxation relating to components of other comprehensive income
10
92
(75)
Items that may be reclassif
ied subsequently to
income statement:
(278)
255
Exchange differences on translation of foreign operations:
Net losses taken to equity
(663)
(563)
Net gains/(losses) on net investment hedges
13
44
(18)
Share of other comprehensive income from associates and jo
int ventures
31
(5)
–
Debt instruments at fair value through other comprehensive income:
Net valuation gains taken to equity
216
300
Reclassif
ied to
income statement
6
172
92
Net impact of expected credit losses
(36)
(48)
Cash ﬂow hedges:
Net movements in cash ﬂow hedge reserve
13
32
583
Taxation relating to components of other comprehensive income
10
(38)
(91)
Other comprehensive (loss)/gain for the year, net of taxation
(476)
362
Total comprehensive income for the year
2,506
3,599
Total comprehensive income attributable to:
Non-controlling interests
28
22
(2)
Parent company shareholders
2,484
3,601
Total comprehensive income for the year
2,506
3,599
Consolidated balance sheet
As at 31 December 2024
Standard Chartered Bank
125
Directors’ Report and Financ
ial Statements 2024
Notes
Group
Company
2024
$mill
ion
2023
$mill
ion
2024
$mill
ion
2023
$mill
ion
Assets
Cash and balances at central banks
12,34
56,665
64,198
45,233
52,758
Financ
ial assets held at fa
ir value through proﬁt or loss
12
103,624
97,100
88,349
86,412
Derivat
ive ﬁnancial
instruments
12,13
82,717
52,554
82,844
53,221
Loans and advances to banks
12,14
22,941
22,803
11,755
10,135
Loans and advances to customers
12,14
158,242
156,143
77,597
75,883
Investment securit
ies
12
96,442
102,474
82,101
92,771
Other assets
19
28,478
28,507
21,552
21,742
Due from subsid
iary undertak
ings and other related parties
5,222
5,666
10,066
10,053
Current tax assets
10
644
484
516
395
Prepayments and accrued income
2,197
2,072
1,535
1,386
Interests in associates and jo
int ventures
31
75
81
–
–
Investments in subsid
iary undertak
ings
31
–
–
10,671
10,066
Goodwill and intang
ible assets
16
3,774
4,210
1,988
2,359
Property, plant and equipment
17
1,144
1,030
659
521
Deferred tax assets
10
350
502
233
379
Retirement beneﬁt schemes in surplus
118
–
118
–
Assets classif
ied as held for sale
20
901
755
474
68
Total assets
563,534
538,579
435,691
418,149
Liab
il
it
ies
Deposits by banks
12
22,409
23,616
17,824
18,280
Customer accounts
12
239,204
237,902
119,502
121,648
Repurchase agreements and other sim
ilar secured borrow
ing
12,16
9,921
12,033
9,845
11,977
Financ
ial l
iab
il
it
ies held at fa
ir value through proﬁt or loss
12
62,929
65,819
61,683
64,467
Derivat
ive ﬁnancial
instruments
12,13
82,577
55,173
82,745
55,531
Debt securit
ies
in issue
12,21
39,864
36,481
36,081
34,740
Other liab
il
it
ies
22
27,767
24,477
21,486
19,213
Due to parent companies, subsid
iary undertak
ings & other related
parties
28,246
31,166
42,313
47,317
Current tax liab
il
it
ies
10
559
445
294
188
Accruals and deferred income
4,265
4,288
2,441
2,453
Subordinated liab
il
it
ies and other borrowed funds
12,26
10,359
11,454
9,801
10,896
Deferred tax liab
il
it
ies
10
427
582
308
477
Provis
ions for l
iab
il
it
ies and charges
23
261
235
186
171
Retirement beneﬁt obligat
ions
29
249
177
200
133
Liab
il
it
ies
included in disposal groups held for sale
20
381
787
–
5
Total liab
il
it
ies
529,418
504,635
404,709
387,496
Equity
Share capital and share premium account
27
21,643
21,643
21,643
21,643
Other reserves
(6,939)
(6,509)
(3,804)
(3,403)
Retained earnings
13,226
12,988
7,421
7,671
Total parent company shareholders’ equity
27,930
28,122
25,260
25,911
Other equity instruments
27
5,722
4,742
5,722
4,742
Total equity excluding non-controlling interests
33,652
32,864
30,982
30,653
Non-controlling interests
28
464
1,080
–
–
Total equity
34,116
33,944
30,982
30,653
Total equity and liab
il
it
ies
563,534
538,579
435,691
418,149
The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its ind
iv
idual
statement of comprehensive income and related notes that form a part of these ﬁnanc
ial statements. The Company proﬁt
for the year after tax is $2,325 mill
ion (2023: Proﬁt after tax $2,585 m
ill
ion).
The notes on pages 130 to 244 form an integral part of these ﬁnanc
ial statements
These ﬁnancial statements were approved by the Court of D
irectors and authorised for issue on 21 February 2025 and signed
on its behalf by:
Bill Winters
, Director
Diego De Giorg
i
, Director
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
126
Consolidated statement of changes in equity
For the year ended 31 December 2024
Share
capital
and share
premium
account
$mill
ion
Preference
share
capital
and share
premium
account
$mill
ion
Capital
and
merger
reserves
1
$mill
ion
Own credit
adjustment
reserve
$mill
ion
Fair value
through other
comprehensive
income reserve
– debt
$mill
ion
Fair value
through other
comprehensive
income reserve
– equity
$mill
ion
Cash ﬂow
hedge
reserve
$mill
ion
Translation
reserve
$mill
ion
Retained
earnings
$mill
ion
Parent
company
shareholders'
equity
$mill
ion
Other
equity
instruments
$mill
ion
Non-
controlling
interests
$mill
ion
Total
$mill
ion
As at 1 January 2023
20,893
1,500
40
(26)
(851)
166
(513)
(5,781)
12,801
28,229
4,750
1,164
34,143
Proﬁt for the year
–
–
–
–
–
–
–
–
3,208
3,208
–
29
3,237
Other comprehensive
income/(loss)
7
–
–
–
73
337
66
500
(550)
(33)
2
393
–
(31)
362
Distr
ibut
ions
–
–
–
–
–
–
–
–
–
–
–
(103)
(103)
Other equity instruments
issued, net of expenses
–
–
–
–
–
–
–
–
–
–
992
–
992
Redemption of other
equity instruments
–
–
–
–
–
–
–
–
–
–
(1,000)
–
(1,000)
Share option expense,
net of taxation
–
–
–
–
–
–
–
–
174
174
–
–
174
Div
idends on
ordinary shares
–
–
–
–
–
–
–
–
(2,599)
(2,599)
–
–
(2,599)
Div
idends on preference
shares and AT1 securit
ies
–
–
–
–
–
–
–
–
(363)
(363)
–
–
(363)
Deemed distr
ibut
ion
to parent
3
–
–
–
–
–
–
–
–
(174)
(174)
–
–
(174)
Share buy-back
8
–
(750)
–
–
–
–
–
–
–
(750)
–
–
(750)
Other movements
5
–
–
–
–
–
(41)
–
71⁴
(26)
4
–
21⁶
25
As at 31 December 2023
20,893
750
40
47
(514)
191
(13)
(6,260)
12,988
28,122
4,742
1,080
33,944
Proﬁt for the year
–
–
–
–
–
–
–
–
2,943
2,943
–
39
2,982
Other comprehensive
(loss)/income
7
–
–
–
(292)
324
(90)
11
21
(609)
187
2,12
(459)
–
(17)
(476)
Distr
ibut
ions
–
–
–
–
–
–
–
–
–
–
–
(125)
(125)
Other equity instruments
issued, net of expenses
–
–
–
–
–
–
–
–
–
–
980
–
980
Share option expenses
–
–
–
–
–
–
–
–
205
205
–
–
205
Div
idends on
ordinary shares
–
–
–
–
–
–
–
–
(2,395)
(2,395)
–
–
(2,395)
Div
idends on preference
shares and AT1 securit
ies
–
–
–
–
–
–
–
–
(349)
(349)
–
–
(349)
Deemed distr
ibut
ion
to parent
3
–
–
–
–
–
–
–
–
(226)
(226)
–
–
(226)
Other movements
–
–
–
(1)
7
–
–
210⁴
(127)
9
89
–
(513)
10
(424)
As at 31 December 2024
20,893
750
40
(246)
(183)
101
8
(6,659)
13,226
27,930
5,722
464
34,116
1
Includes capital reserve of $35 mill
ion, cap
ital redemption reserve of $5 mill
ion
2
Includes actuarial (loss)/gain, net of taxation on Group deﬁned beneﬁt schemes
3
Relates to deemed capital contribut
ion from parent company ar
is
ing from share-based payment net of taxat
ion of $226 mill
ion (2023: $174 m
ill
ion deemed cap
ital
contribut
ion ar
is
ing from share-based payment net of taxat
ion)
4
Movement related to Translation adjustment in 2023. December 2024 movement includes realisat
ion of translat
ion adjustment loss from sale of SCB Zimbabwe Lim
ited
($190 mill
ion), SCB Angola S.A. ($31 m
ill
ion), SCB S
ierra Leone Lim
ited ($25 m
ill
ion) transferred to other operat
ing income.
5
Movements in Reserves relating to Ventures Group due to change in ownership
6
Movement from non-controlling interest of $28 mill
ion pr
imar
ily from Trust Bank S
ingapore offset by release of non-controlling interest relating to Venture group
($7 mill
ion) due to change
in ownership
7
All the amounts are net of tax
8
At an Extraordinary General Meeting of the Company duly convened and held at 1 Basinghall Avenue, London, EC2V 5DD on 26 June 2023, the capital of the Company
was reduced by (i) cancelling and extingu
ish
ing 7,500 7.014% non-cumulative preference shares of US$5 each in the capital of the Company (the “Preference Shares”)
and (i
i) reduc
ing the amount standing to the credit of the Company’s share premium account by US$749,962,500, and a repayment of capital of US$750,000,000 be
paid to the holder of the Preference Shares
9
Mainly includes movements related to Ghana hyperinﬂat
ion.
10 Movements primar
ily from non-controll
ing interest pertain
ing to Trust Bank S
ingapore Lim
ited ($55 m
ill
ion) offset by Standard Chartered Bank S
ingapore Lim
ited
$562 mill
ion perta
in
ing to redempt
ion of Preference share and Standard Chartered Bank Angola S.A. $6 mill
ion.
11
Includes $174 mill
ion ga
in on sale of equity investment transferred to retained earnings partially offset by $76 mill
ion reversal of deferred l
iab
il
ity
12 Includes $174 mill
ion ga
in on sale of equity investment in other comprehensive income reserve transferred to retained earnings partly offset by $13 mill
ion cap
ital
gain tax
Note 27 includes a descript
ion of each reserve.
The notes on pages 130 to 244 form an integral part of these ﬁnanc
ial statements
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
127
Notes
Group
Company
2024
$mill
ion
2023
$mill
ion
2024
$mill
ion
2023
$mill
ion
Cash ﬂows from operating activ
it
ies:
Proﬁt before taxation
4,447
4,414
3,058
3,088
Adjustments for non-cash items and other adjustments included
with
in
income statement
33
1,107
(107)
(1)
(790)
Change in operating assets
33
(34,790)
4,406
(26,161)
23,104
Change in operating liab
il
it
ies
33
25,731
(4,503)
13,864
(13,891)
Contribut
ions to deﬁned beneﬁt schemes
29
(48)
(60)
(39)
(46)
UK and overseas taxes paid
10
(1,422)
(1,229)
(720)
(658)
Net cash (used in)/from operating activ
it
ies
(4,975)
2,921
(9,999)
10,807
Cash ﬂows from invest
ing act
iv
it
ies:
Internally generated capital
ised software
16
(479)
(649)
(246)
(378)
Purchase of property, plant and equipment
17
(224)
(100)
(176)
(53)
Disposal of property, plant and equipment
13
15
15
1
Acquis
it
ion of investment in subsid
iar
ies, associates,
and joint ventures
31
(1)
(1)
–
–
Div
idends rece
ived from subsid
iar
ies, associates
and joint ventures
31,33
6
4
1,052
2,060
Disposal of subsid
iar
ies, associates and jo
int ventures
51
486
26
–
Disposal of assets held for sale and associated liab
il
it
ies
–
108
–
108
Purchase of investment securit
ies
(131,058)
(124,780)
(84,630)
(91,970)
Disposal and maturity of investment securit
ies
132,861
136,837
91,907
97,216
Net cash from invest
ing act
iv
it
ies
1,169
11,920
7,948
6,984
Cash ﬂows from ﬁnancing act
iv
it
ies:
Cancellation of shares includ
ing share buy-back
–
(750)
–
(750)
Premises and equipment lease liab
il
ity princ
ipal payment
(97)
(97)
(43)
(45)
Issue of Addit
ional T
ier 1 capital, net of expenses
27
980
992
980
992
Redemption of Tier 1 capital
27
–
(1,000)
–
(1,000)
Gross proceeds from issue of subordinated liab
il
it
ies
33
–
18
–
–
Interest paid on subordinated liab
il
it
ies
33
(569)
(714)
(528)
(583)
Repayment of subordinated liab
il
it
ies
33
(1,000)
(2,160)
(1,000)
(2,160)
Proceeds from issue of senior debts
33
3,134
5,597
3,114
4,820
Repayment of senior debts
33
(2,480)
(2,546)
(2,471)
(1,806)
Interest paid on senior debts
33
(282)
(235)
(282)
(235)
Net cash inﬂow from non-controlling interests
28
(506)
21
–
–
Distr
ibut
ions and Div
idends pa
id to non-controlling interests,
preference shareholders and AT1 securit
ies
(474)
(466)
(349)
(363)
Div
idends pa
id to ordinary shareholders
(2,395)
(2,599)
(2,395)
(2,599)
Net cash used in ﬁnanc
ing act
iv
it
ies
(3,689)
(3,939)
(2,974)
(3,729)
Net (decrease)/increase in cash and cash equivalents
(7,495)
10,902
(5,025)
14,062
Cash and cash equivalents at beginn
ing of the year
88,360
78,255
53,988
40,264
Effect of exchange rate movements on cash and cash equivalents
(1,916)
(797)
(862)
(338)
Cash and cash equivalents at end of the year
34
78,949
88,360
48,101
53,988
For Bank Group, Interest received was $19,638 mill
ion (31 December 2023: $18,174 m
ill
ion) ,
interest paid was $15,035 mill
ion
(31 December 2023: $13,773 mill
ion).
For Bank Company Interest received was $13,579 mill
ion (31 December 2023: $12,518 m
ill
ion),
interest paid was $11,596 mill
ion
(31 December 2023: $10,787 mill
ion).
Cash ﬂow statement
For the year ended 31 December 2024
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
128
Company statement of changes in equity
For the year ended 31 December 2024
Share
capital
and share
premium
account
$mill
ion
Preference
share
capital
and share
premium
account
$mill
ion
Capital
and
merger
reserves
1
$mill
ion
Own credit
adjustment
reserve
$mill
ion
Fair value
through other
comprehensive
income reserve
– debt
$mill
ion
Fair value
through other
comprehensive
income reserve
– equity
$mill
ion
Cash ﬂow
hedge
reserve
$mill
ion
Translation
reserve
$mill
ion
Retained
earnings
$mill
ion
Parent
company
shareholders'
equity
$mill
ion
Other
equity
instruments
$mill
ion
Total
$mill
ion
As at 1 January 2023
20,893
1,500
40
(24)
(1,040)
147
(522)
(2,853)
8,080
26,221
4,750
30,971
Proﬁt for the year
–
–
–
–
–
–
–
–
2,585
2,585
–
2,585
Other comprehensive
income/(loss)
4
–
–
–
73
324
67
471
(86)
(21)
2
828
–
828
Other equity instruments issued,
net of expenses
–
–
–
–
–
–
–
–
–
–
992
992
Redemption of other equity
instruments
–
–
–
–
–
–
–
–
–
–
(1,000)
(1,000)
Share option expense,
net of taxation
–
–
–
–
–
–
–
–
114
114
–
114
Div
idends on ord
inary shares
–
–
–
–
–
–
–
–
(2,599)
(2,599)
–
(2,599)
Div
idends on preference shares
and AT1 securit
ies
–
–
–
–
–
–
–
–
(363)
(363)
–
(363)
Deemed distr
ibut
ion to parent
3
–
–
–
–
–
–
–
–
(113)
(113)
–
(113)
Share buy-back
5
–
(750)
–
–
–
–
–
–
–
(750)
–
(750)
Other movements
–
–
–
–
–
–
–
–
(12)
(12)
–
(12)
As at 31 December 2023
20,893
750
40
49
(716)
214
(51)
(2,939)
7,671
25,911
4,742
30,653
Proﬁt for the year
–
–
–
–
–
–
–
–
2,325
2,325
–
2,325
Other comprehensive
(loss)/income
4
–
–
–
(291)
308
(83)
34
(326)
194²
(164)
–
(164)
Other equity instruments issued,
net of expenses
–
–
–
–
–
–
–
–
–
–
980
980
Share option expenses
–
–
–
–
–
–
–
–
127
127
–
127
Div
idends on ord
inary shares
–
–
–
–
–
–
–
–
(2,395)
(2,395)
–
(2,395)
Div
idends on preference shares
and AT1 securit
ies
–
–
–
–
–
–
–
–
(349)
(349)
–
(349)
Deemed distr
ibut
ion to parent
3
–
–
–
–
–
–
–
–
(144)
(144)
–
(144)
Other movements
–
–
–
(1)
7
–
–
(49)
(8)
(51)
–
(51)
As at 31 December 2024
20,893
750
40
(243)
(401)
131
(17)
(3,314)
7,421
25,260
5,722
30,982
1
Includes capital reserve of $35 mill
ion, cap
ital redemption reserve of $5 mill
ion
2
Includes actuarial (loss)/gain, net of taxation on Group deﬁned beneﬁt schemes
3
Relates to deemed capital contribut
ion from parent company ar
is
ing from share-based payment net of taxat
ion of $144 mill
ion (31 December 2023: $113 m
ill
ion deemed
capital contribut
ion ar
is
ing from share-based payment net of taxat
ion)
4
All amounts are net of tax
5
At an Extraordinary General Meeting of the Company duly convened and held at 1 Basinghall Avenue, London, EC2V 5DD on 26 June 2023, the capital of the Company
was reduced by (i) cancelling and extingu
ish
ing 7,500 7.014% non-cumulative preference shares of US$5 each in the capital of the Company (the “Preference Shares”)
and (i
i) reduc
ing the amount standing to the credit of the Company’s share premium account by US$749,962,500, and a repayment of capital of US$750,000,000 be
paid to the holder of the Preference Shares.
Note 27 includes a descript
ion of each reserve.
The notes on pages 130 to 244 form an integral part of these ﬁnanc
ial statements.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
129
Section
Note
Page
Basis of preparation
1
Accounting polic
ies
130
Performance/return
2
Segmental informat
ion
133
3
Net interest income
134
4
Net fees and commiss
ion
135
5
Net trading income
138
6
Other operating income
138
7
Operating expenses
139
8
Credit impa
irment
140
9
Goodwill, ﬁxed assets and other impa
irment
144
10
Taxation
144
11
Div
idends
149
Assets and liab
il
it
ies held at fa
ir value
12
Financ
ial
instruments
150
13
Derivat
ive ﬁnancial
instruments
182
Financ
ial
instruments held at amortised cost
14
Loans and advances to banks and customers
194
15
Reverse repurchase and repurchase agreements includ
ing other
sim
ilar lend
ing and borrowing
194
Other assets and investments
16
Goodwill and intang
ible assets
197
17
Property, plant and equipment
200
18
Leased assets
202
19
Other assets
203
20
Assets held for sale and associated liab
il
it
ies
204
Funding, accruals, provis
ions, cont
ingent
liab
il
it
ies and legal proceed
ings
21
Debt securit
ies
in issue
205
22
Other liab
il
it
ies
206
23
Provis
ions for l
iab
il
it
ies and charges
207
24
Contingent liab
il
it
ies and comm
itments
208
25
Legal and regulatory matters
209
Capital instruments, equity and reserves
26
Subordinated liab
il
it
ies and other borrowed funds
210
27
Share capital, other equity instruments and reserves
211
28
Non-controlling interests
213
Employee beneﬁts
29
Retirement beneﬁt obligat
ions
214
30
Share-based payments
222
Scope of consolidat
ion
31
Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
227
32
Structured entit
ies
230
Cash ﬂow statement
33
Cash ﬂow statement
232
34
Cash and cash equivalents
233
Other disclosure matters
35
Related party transactions
234
36
Auditor’s remuneration
237
37
Remuneration of directors
237
38
Related undertakings of the Group
239
39
Group Reorganisat
ion
244
40
Post Balance Sheet events
244
Contents – Notes to the ﬁnancial statements
Notes to the ﬁnancial statements
Standard Chartered Bank
130
Directors’ Report and Financ
ial Statements 2024
1. Accounting polic
ies
Statement of compliance
The Group ﬁnancial statements consol
idate Standard Chartered Bank (the Company) and its subsid
iar
ies (together referred
to as the Group) and equity account the Group’s interests in associates and jo
intly controlled ent
it
ies.
The parent company ﬁnancial statements present
informat
ion about the Company as a separate ent
ity.
The Group ﬁnancial statements have been prepared and approved by the d
irectors in accordance with UK- adopted
internat
ional account
ing standards in conformity with the requirements of the Companies Act 2006 and with internat
ional
ﬁnancial report
ing standards (IFRS) (Accounting Standards) adopted pursuant to Regulation (EC) No 1606/2002 as it applies
in the European Union (EU IFRS). There are no sign
iﬁcant d
ifferences between UK-adopted internat
ional account
ing
standards and EU IFRS.
The Company ﬁnancial statements have been prepared
in accordance with UK-adopted internat
ional account
ing
standards as applied in conformity with section 408 of the Companies Act 2006.
The following parts of the Risk review and Capital review form part of these ﬁnanc
ial statements:
a) Risk review: Disclosures from the start of Risk proﬁle section (page 58) to the end of other princ
ipal r
isks in the
same section (page 108) excluding:
•
Liqu
id
ity coverage ratio (LCR), (page 99)
• Stressed coverage, (page 99)
•
Net stable funding ratio (NSFR), (page 100)
• Liqu
id
ity pool, (page 100)
•
Interest Rate Risk in the Banking Book, (page 106)
• Operational risk, (page 107)
•
Other princ
ipal r
isks, (page 108)
b) Capital review: from the start of ‘Capital Requirements Direct
ive (CRD) cap
ital base’ to the end of ‘movement in total
capital’, excluding capital ratios and risk-weighted assets (RWA)
Basis of preparation
The consolidated and Company ﬁnanc
ial statements have been prepared on a go
ing concern basis and under the histor
ical
cost convention, as modif
ied by the revaluat
ion of cash-settled share-based payments, fair value through other
comprehensive income, and ﬁnanc
ial assets and l
iab
il
it
ies (
includ
ing der
ivat
ives) at fa
ir value through proﬁt or loss.
The consolidated ﬁnanc
ial statements are presented
in United States dollars ($), being the presentation currency of the
Group and functional currency of the Company, and all values are rounded to the nearest mill
ion dollars, except when
otherwise ind
icated.
Sign
iﬁcant and other account
ing estimates and judgement
In determin
ing the carry
ing amounts of certain assets and liab
il
it
ies, the Group makes assumpt
ions of the effects of uncertain
future events on those assets and liab
il
it
ies at the balance sheet date. The Group’s est
imates and assumptions are based
on histor
ical exper
ience and expectation of future events and are reviewed period
ically. Further
informat
ion about key
assumptions concerning the future, and other key sources of estimat
ion uncerta
inty and judgement, are set out in the
relevant disclosure notes for the areas set out under the relevant headings below:
Sign
iﬁcant account
ing estimates and crit
ical judgements
Sign
iﬁcant account
ing estimates and judgements represent those items which have a sign
iﬁcant r
isk of causing a material
adjustment to the carrying amounts of assets and liab
il
it
ies w
ith
in the next year. S
ign
iﬁcant account
ing estimates and
judgements are:
•
Expected credit loss calculations (Note 8)
•
Financ
ial
instruments measured at fair value (Note 12)
•
Investments in subsid
iary undertak
ings (Note 31)
Other areas of accounting estimate and judgement
Other areas of accounting estimate and judgement do not meet the deﬁn
it
ion under IAS 1 of sign
iﬁcant account
ing
estimates or crit
ical account
ing judgements, but the recognit
ion of certa
in material assets and liab
il
it
ies are based on
assumptions and/or are subject to long-term uncertaint
ies. The other areas of account
ing estimate and judgement are:
• Taxation (Note 10)
•
Goodwill and intang
ible assets-Goodw
ill impa
irment and cap
ital
isat
ion of internally generated software intang
ibles
(Note 9 and Note 16)
•
Provis
ions for l
iab
il
it
ies and charges – Other prov
is
ions (Note 23)
•
Legal and regulatory matters – (Note 25)
•
Retirement beneﬁt obligat
ions (Note 29)
• Share-based payments (Note 30)
1. Accounting polic
ies cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
131
Directors’ Report and Financ
ial Statements 2024
Climate change impact on the Group’s balance sheet
Climate, and the impact of climate on the Group’s balance sheet is considered as an area which can impact accounting
estimates and judgments through the uncertainty of future events and the impact of that uncertainty on the Group’s assets
and liab
il
it
ies. However, the Group has concluded that Cl
imate Change does not have a ﬁnanc
ially mater
ial impact at this
time. In reaching this conclusion, the Group also leverages assessments performed at PLC Group level and the extent to which
the results impact the Group.
The PLC Group has assessed the impact of climate risk on the PLC Group as a whole. This is set out with
in the Susta
inab
il
ity
Overview and Sustainab
il
ity Review chapter in the PLC Annual Report which incorporate the PLC Group’s Climate-related
Financ
ial D
isclosures which align with the recommendations from the Task Force for Climate related Financ
ial D
isclosures
(TCFD). Further risk disclosure has been provided in the Princ
ipal R
isks and Uncertaint
ies sect
ion of the Annual Report where
the PLC Group has described how it manages climate risk, which is integrated across relevant Princ
ipal R
isk Types (PRTs) and
is managed via the PLC Group ESGR Risk Type framework.
The areas of impact for the Group where judgements and the use of estimates have been applied were credit risk and the
impact on lending portfolios; ESG features with
in
issued loans and bonds; physical risk on our mortgage lending portfolio; and
the corporate plan, in respect of which forward looking cash ﬂows impact the recoverabil
ity of certa
in assets, includ
ing of
goodwill, deferred tax assets and investments in subsid
iary undertak
ings.
Transit
ion r
isk, as our clients move to lower carbon emitt
ing revenues, (e
ither by virtue of legislat
ion or chang
ing end customer
preference) is considered with reference to client transit
ion pathways and man
ifests over a longer term than the maturity of
the loan book (up to 2050). At PLC Group level, the setting of net zero targets, which as of this annual report covers our 12
highest emitt
ing sectors, manages trans
it
ion r
isk. Net zero targets enable the portfolio managers to work with our clients on
their transit
ion and deploy cap
ital to those clients which are engaged and have adequate transit
ion pathways. All of these
actions manage the Group’s transit
ion r
isk and engage clients before transit
ion r
isk manifests itself into credit losses. We have
also evaluated transit
ion r
isk to achieve net zero in our own operations.
While physical risk is included with
in the majority of our mortgage lend
ing decis
ions, we have appl
ied scenario analysis
against the pathways of different temperature outcomes to examine exposure concentration risk in key markets subject to
the extreme risk of ﬂoods and storms to assess the acute physical risk, and sea level rise to assess the chronic physical risk.
Stranded assets analysis was conducted for resident
ial mortgages to
ident
ify propert
ies that are expected to become
uninhab
itable and/ore unusable due to
increased frequency and intens
ity of phys
ical risk events from acute and chronic risks.
We assess the physical risk vulnerabil
it
ies of our exist
ing s
ites on a regular basis and for new sites during the onboarding
process. Addit
ionally, we assess the
impact of climate risk on the classif
icat
ion of ﬁnanc
ial
instruments under IFRS 9, when
Environmental, Social or Governance (ESG) triggers may affect the cash ﬂows received by the Group under the contractual
terms of the instrument.
The PLC Group’s ESGR Risk team has performed a quantitat
ive assessment of the
impact of climate risk on the IFRS 9 ECL
provis
ion. Th
is assessment has been performed across both the CIB and WRB portfolios. The Climate risk impact assessment
on IFRS 9 business as usual ECL has been conducted based on newly developed and enhanced internal climate risk models
for corporates across six prior
ity sectors (O
il and Gas, Power, Steel, Min
ing, Sh
ipp
ing, and Automot
ive), one Generic model
for the remain
ing corporate sectors and Sovere
igns, whilst the top-down approach developed in 2022 was used for the
remain
ing portfol
ios. The impact assessment, which primar
ily focused on trans
it
ion r
isk, resulted in only a marginal ECL
increase across CIB and WRB for the PLC Group, which has been recorded as a management overlay for the 2024 year end to
the extent related to the Group.
The Group’s corporate plan has a 5year outlook and considers the highest emitt
ing sectors the Group ﬁnances. The majority
of the PLC Group sector targets are production/physical intens
it
ies which allow continued levels of lending as long as the
products the client produce have a decreasing carbon cost. For Coal Min
ing and O
il and Gas, these sectors have absolute
targets which represent a decreasing carbon budget. Coal Min
ing
is an immater
ial book, wh
ilst for Oil and Gas lending is
being actively monitored towards lower carbon counterparties and technologies. The corporate plan is shorter term than
many of the climate scenario outlooks but seeks to capture the nearer term performance as required by recoverabil
ity
models. The Group has for the third time in the 2025 corporate plan included antic
ipated cred
it impa
irment charges, now
across seven sectors (Oil and Gas, Metals and Min
ing, Power, and Transport, along w
ith Cement, Automobile, and
Commercial Real Estate which have been newly added this year). This addit
ion of cred
it impa
irment has not
in itself,
materially impacted the recoverabil
ity of Group assets supported by d
iscounted cash ﬂow models (such as Value in Use)
which util
ise the Corporate plan.
The PLC Group has progressively strengthened its scenario analysis capabil
it
ies with the modelling of Climate Risk impact
over a 30-year period across multiple dimens
ions
includ
ing scenar
io data and pathways across CIB and WRB portfolios.
While we have taken the ﬁrst step in our journey to transit
ion from our rel
iance on vendor models to in-house capabil
it
ies,
challenges underpin the scenario analysis, such as reliance on nascent methodologies, dependencies on ﬁrst generation
models and data lim
itat
ions. Notwithstand
ing these challenges, our work to date, us
ing certain assumptions and proxies,
ind
icates that our bus
iness is resil
ient to all Network of Central Banks and Superv
isors for Greening the Financ
ial System
(NGFS) and bespoke scenarios that were explored.
1. Accounting polic
ies cont
inued
The Group, although acknowledging the lim
itat
ions of current data available, increas
ing soph
ist
icat
ion of models evolving
and nascent nature of climate impacts on internal and client assets, considers Climate Risk to have lim
ited quant
itat
ive
impact in the immed
iate term and as a longer-term r
isk is expected to be addressed through its business strategy and
ﬁnancial plann
ing as the Group implements its net zero journey.
Comparatives
Certain comparatives have been represented in line with current year disclosures. Details of these changes are set out in the
relevant sections and notes below:
• Segment reporting- (Note 2)
New accounting standards in issue but not yet effective
There were no new accounting standards or interpretat
ions that had a mater
ial effect on the Group’s Financ
ial Statements
in 2024.
IAS 21 Amendment – Lack of Exchangeabil
ity
In August 2023, the IASB issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates to specify how
an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when
exchangeabil
ity
is lacking. The amendments also require disclosure of informat
ion that enables users to understand the
impact of a currency not being exchangeable. The amendments will be effective for annual reporting periods beginn
ing on
or after 1 January 2025. The amendment is not expected to have a material impact on the Group’s ﬁnanc
ial statements.
IFRS 18 Presentation and Disclosure in Financ
ial Statements
The new standard IFRS 18 was issued in April 2024 and is effective for annual reporting periods beginn
ing on or after January
1, 2027 but earlier applicat
ion
is permitted. This new standard replaces IAS 1 Presentation of Financ
ial Statements and
amends IAS 7 Statement of Cash Flows. IFRS 18 introduces three deﬁned categories for income and expenses—operating,
invest
ing and ﬁnancing—to
improve the structure of the income statement, and requires all companies to provide new
deﬁned subtotals, includ
ing operat
ing proﬁt. IFRS 18 will require disclosure of explanations of company-specif
ic measures that
are related to the income statement, referred to as management-deﬁned performance measures. IFRS 18 sets out enhanced
guidance on how to organise informat
ion and whether to prov
ide it in the primary ﬁnanc
ial statements or
in the notes. The
Group will apply IFRS 18 for annual reporting periods beginn
ing on January 1, 2027 and
is currently not expected to have a
material impact on the Group’s ﬁnanc
ial statements other than a change
in the presentation of the primary statements.
IFRS 9 Financ
ial Instruments and IFRS 7 F
inanc
ial Instruments: D
isclosures Amendments
In May 2024, the IASB issued Amendments to the Classif
icat
ion and Measurement of Financ
ial Instruments wh
ich amended
requirements related to settling ﬁnanc
ial l
iab
il
it
ies us
ing an electronic payment system and assessing contractual cash ﬂow
characterist
ics of ﬁnancial assets,
includ
ing those w
ith environmental, social and governance (ESG)-linked features. The IASB
also amended disclosure requirements relating to investments in equity instruments designated at fair value through other
comprehensive income and added disclosure requirements for ﬁnanc
ial
instruments with contingent features that do not
relate directly to basic lending risks and costs. The amendments will be effective for annual reporting periods beginn
ing on or
after 1 January 2026. The amendments are not expected to have a material impact on the Group’s ﬁnanc
ial statements.
Going concern
These ﬁnancial statements were approved by the Court of d
irectors on 21 February 2025. The directors have made an
assessment of the Group’s abil
ity to cont
inue as a going concern. This assessment has been made having considered
the current macroeconomic and geopolit
ical headw
inds, includ
ing:
•
A review of the Group Strategy and Corporate plan, includ
ing the annual budget.
•
An assessment of the actual performance to date, loan book quality, credit impa
irment, legal and regulatory matters,
compliance matters, and recent regulatory developments.
•
Considerat
ion of stress test
ing performed, includ
ing the PLC Group’s Recovery Plan (RP) wh
ich was submitted to the PRA
and includes the applicat
ion of stressed scenar
ios. Under the tests and through the range of scenarios, the results of the RP
demonstrate that the Group has sufﬁcient cap
ital and liqu
id
ity to continue as a going concern and meet min
imum
regulatory capital and liqu
id
ity requirements.
•
Analysis of the capital posit
ion of the PLC Group,
includ
ing the cap
ital and leverage ratios, and ICAAP which summarises
the PLC Group’s capital and risk assessment processes, assesses its capital requirements and the adequacy of resources to
meet them.
•
Analysis of the funding and liqu
id
ity posit
ion of the PLC Group,
includ
ing the PLC Group’s Internal L
iqu
id
ity Adequacy
Assessment Process (ILAAP), which considers the Group’s liqu
id
ity posit
ion,
its framework and whether sufﬁc
ient l
iqu
id
ity
resources are being mainta
ined to meet l
iab
il
it
ies as they fall due, was also rev
iewed. Further, PLC Group’s funding and
liqu
id
ity was considered in the context of the risk appetite metrics, includ
ing the PLC Group’s LCR rat
io.
•
The level of PLC Group’s debt in issue, includ
ing redempt
ions and issuances during the year, debt falling due for repayment
in the next 12 months and further planned debt issuances, includ
ing the appet
ite in the market for the PLC Group’s debt.
•
The PLC Group's portfolio of debt securit
ies held at amort
ised cost.
•
A detailed review of all PLC Group’s princ
ipal r
isks as well as topical and emerging risks.
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
132
Directors’ Report and Financ
ial Statements 2024
1. Accounting polic
ies cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
133
Directors’ Report and Financ
ial Statements 2024
Based on the analysis performed, the directors conﬁrm they are satisf
ied that the Group has adequate resources to cont
inue
in business for a period of at least 12 months from 21 February 2025. For this reason, the Group continues to adopt the going
concern basis of accounting for preparing the ﬁnanc
ial statements.
2. Segmental informat
ion
Basis of preparation
The analysis reﬂects the Financ
ial v
iew, that is, the location in which the transaction or balance was booked.
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.

| 2024 | 2023 (Restated)¹ |
| Corporate & | Wealth & |  |  |  | Corporate & | Wealth & |  |  |
| Investment | Retail |  | Central & |  | Investment | Retail |  | Central & |
| Banking | Banking | Ventures | other items | Total | Banking | Banking | Ventures | other items | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Operating |  |  |  |  |  |  |  |  |  |
income | 8,531 | 3,706 | 86 | 91 | 12,414 | 8,032 | 3,501 | 137 | (121) | 11,549
External | 6,391 | 2,044 | 87 | 3,892 | 12,414 | 6,086 | 2,169 | 138 | 3,156 | 11,549
Inter- |  |  |  |  |  |  |  |  |  |
segment | 2,140 | 1,662 | (1) | (3,801) | – | 1,946 | 1,332 | (1) | (3,277) | –
Operating |  |  |  |  |  |  |  |  |  |
expenses | (4,794) | (2,339) | (133) | (284) | (7,550) | (4,269) | (2,062) | (333) | (483) | (7,147)
Operating |  |  |  |  |  |  |  |  |  |
proﬁt/(loss) |  |  |  |  |  |  |  |  |  |
before |  |  |  |  |  |  |  |  |  |
impa irment |  |  |  |  |  |  |  |  |  |
losses and |  |  |  |  |  |  |  |  |  |
taxation | 3,737 | 1,367 | (47) | (193) | 4,864 | 3,763 | 1,439 | (196) | (604) | 4,402
Credit |  |  |  |  |  |  |  |  |  |
impa irment | 262 | (286) | (25) | 34 | (15) | 163 | (129) | (13) | 37 | 58
Other |  |  |  |  |  |  |  |  |  |
impa irment | (212) | (75) | (8) | (115) | (410) | (40) | (6) | (24) | 28 | (42)
Proﬁt/(loss) |  |  |  |  |  |  |  |  |  |
from |  |  |  |  |  |  |  |  |  |
associates and |  |  |  |  |  |  |  |  |  |
joint ventures | – | – | – | 8 | 8 | – | – | (24) | 20 | (4)
Proﬁt/(loss) |  |  |  |  |  |  |  |  |  |
before |  |  |  |  |  |  |  |  |  |
taxation | 3,787 | 1,006 | (80) | (266) | 4,447 | 3,886 | 1,304 | (257) | (519) | 4,414
Total assets | 327,528 | 48,915 | 3,037 | 184,054 | 563,534 | 285,036 | 49,137 | 2,208 | 202,198 | 538,579
Total liab il it ies | 350,797 | 78,950 | 2,809 | 96,862 | 529,418 | 330,747 | 70,953 | 1,535 | 101,400 | 504,635

1
Prior period amounts have been restated to align with changes to the current year presentation which now reﬂect the impact of restructuring cost and gain on sale of
businesses.
Addit
ional segmental
informat
ion

| 2024 | 2023
| Corporate & | Wealth & |  |  |  | Corporate & | Wealth & |  |  |
| Investment | Retail |  | Central & |  | Investment | Retail |  | Central & |
| Banking | Banking | Ventures | other items | Total | Banking | Banking | Ventures | other items | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Net interest |  |  |  |  |  |  |  |  |  |
income | 2,377 | 2,404 | 54 | (435) | 4,400 | 3,259 | 2,346 | 9 | (1,007) | 4,607
Net fees and |  |  |  |  |  |  |  |  |  |
commiss ion |  |  |  |  |  |  |  |  |  |
income | 1,574 | 1,101 | 21 | (34) | 2,662 | 1,397 | 876 | 40 | 125 | 2,438
Net trading |  |  |  |  |  |  |  |  |  |
and other |  |  |  |  |  |  |  |  |  |
income | 4,580 | 201 | 11 | 560 | 5,352 | 3,376 | 279 | 88 | 761 | 4,504
Operating |  |  |  |  |  |  |  |  |  |
income | 8,531 | 3,706 | 86 | 91 | 12,414 | 8,032 | 3,501 | 137 | (121) | 11,549

2. Segmental informat
ion cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
134
Directors’ Report and Financ
ial Statements 2024
Operating income by key geographies

| 2024
| Singapore | India | UAE | UK | US | Others | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Net interest income | 717 | 961 | 522 | (987) | 533 | 2,654 | 4,400
Net fees and commiss ion income | 805 | 162 | 293 | 369 | 437 | 596 | 2,662
Net trading and other income | 1,291 | 416 | 419 | 2,178 | 4 | 1,044 | 5,352
Operating income | 2,813 | 1,539 | 1,234 | 1,560 | 974 | 4,294 | 12,414

| 2023
| Singapore | India | UAE | UK | US | Others | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Net interest income | 1,156 | 934 | 510 | (760) | 176 | 2,591 | 4,607
Net fees and commiss ion income | 658 | 181 | 175 | 363 | 409 | 652 | 2,438
Net trading and other income | 879 | 313 | 481 | 1,513 | 67 | 1,251 | 4,504
Operating income | 2,693 | 1,428 | 1,166 | 1,116 | 652 | 4,494 | 11,549

3. Net interest income
Accounting Policy
Interest income for ﬁnanc
ial assets held at e
ither fair value through other comprehensive income or amortised cost,
and interest expense on all ﬁnanc
ial l
iab
il
it
ies held at amort
ised cost is recognised in proﬁt or loss using the effective
interest method.
The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of
the ﬁnancial
instrument or, when appropriate, a shorter period, to the net carrying amount of the ﬁnanc
ial asset or ﬁnancial
liab
il
ity. When calculating the effective interest rate, the Group estimates cash ﬂows consider
ing all contractual terms of the
ﬁnancial
instrument (for example prepayment options) but does not consider future credit losses. The calculation includes all
fees paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs
and all other premiums or discounts. For ﬂoating-rate ﬁnanc
ial
instruments, period
ic re-est
imat
ion of cash ﬂows that reﬂect
the movements in the market rates of interest alters the effective interest rate. Where the estimates of cash ﬂows have
been revised, the carrying amount of the ﬁnanc
ial asset or l
iab
il
ity is adjusted to reﬂect the actual and revised cash ﬂows,
discounted at the instruments orig
inal effect
ive interest rate. The adjustment is recognised as interest income or expense in
the period in which the revis
ion
is made as long as the change in estimates is not due to credit issues.
Interest income for ﬁnanc
ial assets that are e
ither held at fair value through other comprehensive income or amortised cost
that have become credit-impa
ired subsequent to
in
it
ial recognit
ion (stage 3) and have had amounts wr
itten off, is recognised
using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective interest rate
except that expected credit losses are included in the expected cash ﬂows. Interest income is therefore recognised on the
amortised cost of the ﬁnanc
ial asset
includ
ing expected cred
it losses. Should the credit risk on a stage 3 ﬁnanc
ial asset
improve such that the ﬁnanc
ial asset
is no longer considered credit-impa
ired,
interest income recognit
ion reverts to a
computation based on the rehabil
itated gross carry
ing value of the ﬁnanc
ial asset.
3. Net interest income continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
135
Directors’ Report and Financ
ial Statements 2024

| 2024 | 2023
| $mill ion | $mill ion
Balances at central banks | 2,500 | 2,813
Loans and advances to banks | 1,296 | 1,175
Loans and advances to customers | 10,436 | 9,399
Debt securit ies | 3,718 | 3,650
Other elig ible b ills | 1,254 | 1,204
Accrued on impa ired assets (d iscount unwind) | 106 | 139
Interest income | 19,310 | 18,380
Of which: ﬁnanc ial instruments held at fair value through other comprehensive income | 2,892 | 2,550
Deposits by banks | 728 | 626
Customer accounts¹ | 11,896 | 10,739
Debt securit ies in issue | 1,653 | 1,771
Subordinated liab il it ies and other borrowed funds | 597 | 602
Interest expense on IFRS 16 lease liab il it ies | 36 | 35
Interest expense | 14,910 | 13,773
Net interest income | 4,400 | 4,607

1
Deposit insurance premiums of $61m have been reclassif
ied from customer accounts related
interest expense to general operating expenses in 2024. The prior year has
not been reclassif
ied as
it is not deemed material
4. Net fees and commiss
ion
Accounting policy
The Group can act as trustee or in other Fiduc
iary capac
it
ies that result
in the holding or placing of assets on behalf of
ind
iv
iduals, trusts, retirement beneﬁt plans and other inst
itut
ions. The assets and income aris
ing thereon are excluded from
these ﬁnancial statements, as they are not assets and
income of the Group.
The Group applies the following practical expedients:
•
informat
ion on amounts of transact
ion price allocated to unsatisf
ied (or part
ially unsatisf
ied) performance obl
igat
ions
at the end of the reporting period is not disclosed as almost all fee-earning contracts have an expected duration of less
than one year
•
promised considerat
ion
is not adjusted for the effects of a sign
iﬁcant ﬁnancing component as the per
iod between the
Group provid
ing a serv
ice and the customer paying for it is expected to be less than one year
•
incremental costs of obtain
ing a fee-earn
ing contract are recognised upfront in 'Fees and commiss
ion expense' rather
than amortised, if the expected term of the contract is less than one year
The determinat
ion of the serv
ices performed for the customer, the transaction price, and when the services are completed
depends on the nature of the product with the customer. The main considerat
ions on
income recognit
ion by product are
as follows:
Transaction Banking
The Group recognises fee income associated with transactional trade and cash management at the point in time the
service is provided. The Group recognises income associated with trade contingent risk exposures (such as letters of credit
and guarantees) over the period in which the service is provided.
Payment of fees is usually received at the same time the service is provided. In some cases, letters of credit and guarantees
issued by the Group have annual upfront premiums, which are amortised on a straight-line basis to fee income over the year.
Global Markets
The Group recognises fee income at the point in time the service is provided. Fee income is recognised for a sign
iﬁcant
non-lending service when the transaction has been completed and the terms of the contract with the customer entitle
the Group to the fee. This includes fees such as structuring and advisory fees. Fees are usually received shortly after the
service is provided.
Syndicat
ion fees are recogn
ised when the syndicat
ion
is complete deﬁned as achiev
ing the ﬁnal approved hold pos
it
ion.
Fees are generally received before completion of the syndicat
ion, or w
ith
in 12 months of the transact
ion date.
Securit
ies serv
ices include custody services, fund accounting and admin
istrat
ion, and broker clearing. Fees are recognised
over the period the custody or fund management services are provided, or as and when broker services are requested.
4. Net fees and commiss
ion cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
136
Directors’ Report and Financ
ial Statements 2024
Wealth Management
Upfront considerat
ion on bancassurance agreements
is amortised straight-line over the contractual term. Commiss
ions
for bancassurance activ
it
ies are recorded as they are earned through sales of third-party insurance products to customers.
These commiss
ions are rece
ived with
in a short t
ime frame of the commiss
ion be
ing earned. Target-linked fees are accrued
based on percentage of the target achieved, provided it is assessed as highly probable that the target will be met.
Cash payment is received at a contractually specif
ied date after ach
ievement of a target has been conﬁrmed.
Upfront and trail
ing comm
iss
ions for managed
investment placements are recorded as they are conﬁrmed. Income from
these activ
it
ies is relatively even throughout the period, and cash is usually received with
in a short t
ime frame after the
commiss
ion
is earned.
Retail Products
The Group recognises most income at the point in time the Group is entitled to the fee, since most services are provided at
the time of the customer’s request.
In most of our retail markets there are circumstances under which fees are waived, income recognit
ion
is adjusted to
reﬂect customer’s intent to pay the annual fee. The Group defers the fair value of reward points on its credit card reward
programmes, and recognises income and costs associated with fulﬁll
ing the reward at the t
ime of redemption.

| 2024 | 2023
| $mill ion | $mill ion
Fees and commiss ions income | 3,486 | 3,094
Of which: |  |
Financ ial instruments that are not fair valued through proﬁt or loss | 1,162 | 1,139
Trust and other ﬁduciary act iv it ies | 278 | 239
Fees and commiss ions expense | (824) | (656)
Of which: |  |
Financ ial instruments that are not fair valued through proﬁt or loss | (156) | (84)
Trust and other ﬁduciary act iv it ies | (12) | (17)
Net fees and commiss ion | 2,662 | 2,438

4. Net fees and commiss
ion cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
137
Directors’ Report and Financ
ial Statements 2024

| 2024 | 2023
| Corporate |  |  |  |  | Corporate |  |  |  |
| & | Wealth & |  |  |  | & | Wealth & |  |  |
| Investment | Retail |  | Central & |  | Investment | Retail |  | Central & |
| Banking | Banking | Ventures | other items | Total | Banking | Banking | Ventures | other items | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Transaction Services | 1,174 | 35 | – | – | 1,209 | 1,346 | 22 | – | – | 1,368
Payments & Liqu id ity | 531 | 17 | – | – | 548 | 500 | 5 | – | – | 505
Securit ies & Pr ime Services | 155 | – | – | – | 155 | 150 | – | – | – | 150
Trade & Working Capital | 488 | 18 | – | – | 506 | 696 | 17 | – | – | 713
Global Banking | 779 | – | – | – | 779 | 565 | 5 | – | – | 570
Lending & Financ ing |  |  |  |  |  |  |  |  |  |
Solutions | 503 | – | – | – | 503 | 418 | 5 | – | – | 423
Capital Market & Advisory | 276 | – | – | – | 276 | 147 | – | – | – | 147
Global Markets | 121 | (1) | – | – | 120 | 61 | – | – | – | 61
Macro Trading | 66 | (1) | – | – | 65 | (24) | – | – | – | (24)
Credit Trading | 56 | – | – | – | 56 | 81 | – | – | – | 81
Valuation & Other Adj | (1) | – | – | – | (1) | 3 | – | – | – | 3
Wealth Solutions | – | 891 | – | – | 891 | – | 678 | – | – | 678
Investment Products | – | 712 | – | – | 712 | – | 516 | – | – | 516
Bancassurance | – | 179 | – | – | 179 | – | 162 | – | – | 162
CCPL & Other |  |  |  |  |  |  |  |  |  |
Unsecured Lending | – | 235 | 34 | – | 269 | – | 272 | 23 | – | 294
Deposits | – | 96 | – | – | 96 | – | 111 | – | – | 111
Mortgages & Other |  |  |  |  |  |  |  |  |  |
Secured Lending | – | 20 | – | – | 20 | (1) | – | – | – | (1)
Treasury | – | – | – | (3) | (3) | – | – | – | 4 | 4
Others | – | – | – | 105 | 105 | – | (12) | 32 | (11) | 9
Net fees and commiss ion |  |  |  |  |  |  |  |  |  |
income | 2,074 | 1,276 | 34 | 102 | 3,486 | 1,971 | 1,075 | 55 | (7) | 3,094
Net fees and commiss ion |  |  |  |  |  |  |  |  |  |
expense | (500) | (175) | (13) | (136) | (824) | (574) | (199) | (15) | 132 | (656)
Net fees and commiss ion | 1,574 | 1,101 | 21 | (34) | 2,662 | 1,397 | 876 | 40 | 125 | 2,438

Upfront bancassurance considerat
ion amounts are amort
ised on a straight-line basis over the contractual period to which
the considerat
ion relates. Deferred
income on the balance sheet in respect of these activ
it
ies is $419 mill
ion (31 December
2023: $474 mill
ion). Follow
ing renegotiat
ion of the contract
in 2023, the life of the contract was extended for a further 3 years
and the income will be earned evenly till June 2032. For the twelve months ended 31 December 2024, $45 mill
ion of fee
income
was released from deferred income (31 December 2023: $60 mill
ion).
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
138
Directors’ Report and Financ
ial Statements 2024
5. Net trading income
Accounting policy
Gains and losses aris
ing from changes
in the fair value of ﬁnanc
ial
instruments held at fair value through proﬁt or loss are
recorded in net trading income in the period in which they arise. This includes contractual interest receivable or payable.
When the in
it
ial fair value of a ﬁnanc
ial
instrument held at fair value through proﬁt or loss relies on unobservable inputs, the
difference between the in
it
ial valuation and the transaction price is amortised to net trading income as the inputs become
observable or over the life of the instrument, whichever is shorter. Any unamortised ‘day one’ gain is released to net trading
income if the transaction is terminated.
Income is recognised from the sale and purchase of trading posit
ions, marg
ins on market making and customer business and
fair value changes.

| 2024 | 2023
| $mill ion | $mill ion
Net trading income | 5,530 | 4,100
Sign iﬁcant items with in net trad ing income include: |  |
Gains on instruments held for trading 1 | 4,272 | 2,762
Gains on ﬁnanc ial assets mandator ily at fair value through proﬁt or loss | 4,580 | 3,976
Gains on ﬁnanc ial assets des ignated at fair value through proﬁt or loss | – | 2
Losses on ﬁnancial l iab il it ies des ignated at fair value through proﬁt or loss | (3,162) | (2,445)

1
Includes $54 mill
ion loss (31 December 2023: $104 m
ill
ion loss) from the translat
ion of foreign currency monetary assets and liab
il
it
ies, out of wh
ich $157 mill
ion ga
in
(31 December 2023: $nil) relates to Egypt FX revaluation impact
6. Other operating income

| 2024 | 2023
| $mill ion | $mill ion
Other operating income includes: |  |
Rental income from operating lease assets | 7 | 4
Net loss on disposal of fair value through other comprehensive income debt instruments | (172) | (92)
Net loss on disposal of amortized cost ﬁnanc ial assets | (18) | (86)
Net (loss)/gain on sale of businesses 1 | (214) | 448
Div idend income | 3 | 10
Others 2 | 216 | 120
Other operating income | (178) | 404

1
Includes loss on disposal of subsid
iar
ies- $217 mill
ion (SCB Z
imbabwe Lim
ited: $172 m
ill
ion, SCB Angola S.A.: $26 m
ill
ion and SCB S
ierra Leone Lim
ited: $19 m
ill
ion) of wh
ich
$246 mill
ion relates to real
izat
ion of translat
ion adjustment loss, Total cash considerat
ion rece
ived from the disposal was $51 mill
ion (SCB Z
imbabwe Lim
ited: $24 m
ill
ion,
SCB Angola S.A.: $10 mill
ion, SCB S
ierra Leone Lim
ited: $17 m
ill
ion)
2
Includes IAS 29 adjustment Ghana hyperinﬂat
ionary
impact ($139 mill
ion), Research and development expend
iture credit ($32 mill
ion), mark-to-market ga
ins from
deferred compensation income ($17 mill
ion), rebates /
incent
ives rece
ived from VISA card ($10 mill
ion), ga
in on disposal of property, plant and equipment ($3 mill
ion)
and immater
ial balances across other geograph
ies.
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
139
Directors’ Report and Financ
ial Statements 2024
7. Operating expenses

| 2024 | 2023
| $mill ion | $mill ion
Staff costs: |  |
Wages and salaries | 5,007 | 4,926
Social security costs | 184 | 172
Other pension costs (Note 29) | 332 | 312
Share-based payment costs (Note 30) | 219 | 175
Other staff costs | 675 | 701
| 6,417 | 6,286
Premises and equipment expenses: | 254 | 241
General admin istrat ive expenses: |  |
UK bank levy | 90 | 111
Other general admin istrat ive expenses | 133 | (138)
Depreciat ion and amort isat ion: |  |
Property, plant and equipment: |  |
Premises | 130 | 131
Equipment | 68 | 72
Intangibles: |  |
Software | 455 | 440
Acquired on business combinat ions | 3 | 4
Total operating expenses | 7,550 | 7,147

Other staff costs include redundancy expenses of $142 mill
ion (31 December 2023: $81 m
ill
ion). Further costs
in this category
include train
ing, travel costs and other staff related costs.
Details of directors’ pay, beneﬁts, pensions and beneﬁts and interests in shares are disclosed in Note 37 Remuneration of
Directors’.
Transactions with directors, ofﬁcers and other related parties are disclosed in Note 35.
Operating expenses include research expenditure of $801 mill
ion (31 December 2023: $687 m
ill
ion), wh
ich was recognised
as an expense in the year.
The UK bank levy is applied to chargeable equity and liab
il
it
ies on the balance sheet of UK operat
ions. Key exclusions from
chargeable equity and liab
il
it
ies
include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain
sovereign debt and liab
il
it
ies subject to nett
ing. The rates are 0.10 per cent for short-term liab
il
it
ies and 0.05 per cent for
long-term liab
il
it
ies.
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
140
Directors’ Report and Financ
ial Statements 2024
8. Credit impa
irment
Accounting policy
Sign
iﬁcant account
ing estimates and judgements
The Group’s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying assumptions.
The sign
iﬁcant judgements
in determin
ing expected cred
it loss include:
•
The Group’s criter
ia for assess
ing if there has been a sign
iﬁcant
increase in credit risk;
•
Development of expected credit loss models, includ
ing the cho
ice of inputs relating to macroeconomic variables;
•
Determin
ing est
imates of forward looking macroeconomic forecasts;
•
Evaluation of management overlays and post-model adjustments;
•
Determinat
ion of probab
il
ity we
ight
ings for Stage 3
ind
iv
idually assessed provis
ions
The calculation of credit impa
irment prov
is
ions also
involves expert credit judgement to be applied by the credit risk
management team based upon counterparty informat
ion they rece
ive from various sources includ
ing relat
ionsh
ip managers
and on external market informat
ion. Deta
ils on the approach for determin
ing expected cred
it loss can be found in the
credit risk section, under IFRS 9 Methodology (page 88).
Estimates of forecasts of key macroeconomic variables underlying the expected credit loss calculation can be found
with
in the R
isk review, Key assumptions and judgements in determin
ing expected cred
it loss (page 89).
Expected credit losses
An ECL represents the present value of expected cash shortfalls over the residual term of a ﬁnanc
ial asset, undrawn
commitment or ﬁnanc
ial guarantee.
A cash shortfall is 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.
Measurement
ECL are computed as unbiased, probabil
ity-we
ighted amounts which are determined by evaluating a range of reasonably
possible outcomes, the time value of money, and consider
ing all reasonable and supportable
informat
ion
includ
ing that
which is forward-looking.
For material portfolios, the estimate of expected cash shortfalls is determined by multiply
ing the probab
il
ity of default (PD)
with the loss given default (LGD) with the expected exposure at the time of default (EAD). There may be multiple default
events over the lifet
ime of an
instrument. Further details on the components of PD, LGD and EAD are disclosed in the Credit
risk section. For less material Retail Banking loan portfolios, the Group has adopted less sophist
icated approaches based on
histor
ical roll rates or loss rates.
Forward-looking economic assumptions are incorporated into the PD, LGD and EAD where relevant and where they inﬂuence
credit risk, such as GDP growth rates, interest rates, house price ind
ices and commod
ity prices among others. These
assumptions are incorporated using the Group’s most likely forecast for a range of macroeconomic assumptions. These
forecasts are determined using all reasonable and supportable informat
ion, wh
ich includes both internally developed
forecasts and those available externally, and are consistent with those used for budgeting, forecasting and capital planning.
To account for the potential non-linear
ity
in credit losses, multiple forward-looking scenarios are incorporated into the range
of reasonably possible outcomes for all material portfolios. For example, where there is a greater risk of downside credit losses
than upside gains, multiple forward-looking economic scenarios are incorporated into the range of reasonably possible
outcomes, both in respect of determin
ing the PD (and where relevant, the LGD and EAD) and
in determin
ing the overall ECL
amounts. These scenarios are determined using a Monte Carlo approach centred around the Group’s most likely forecast of
macroeconomic assumptions.
The period over which cash shortfalls are determined is generally lim
ited to the max
imum contractual period for which
the Group is exposed to credit risk. However, for certain revolving credit facil
it
ies, which include credit cards or overdrafts,
the Group’s exposure to credit risk is not lim
ited to the contractual per
iod. For these instruments, the Group estimates an
appropriate life based on the period that the Group is exposed to credit risk, which includes the effect of credit risk
management actions such as the withdrawal of undrawn facil
it
ies.
For credit-impa
ired ﬁnancial
instruments, the estimate of cash shortfalls may require the use of expert credit judgement.
The estimate of expected cash shortfalls on a collateralised ﬁnanc
ial
instrument reﬂects the amount and tim
ing of cash
ﬂows that are expected from foreclosure on the collateral less the costs of obtain
ing and sell
ing the collateral, regardless
of whether foreclosure is deemed probable.
Cash ﬂows from unfunded credit enhancements held are included with
in the measurement of expected cred
it losses
if they are part of, or integral to, the contractual terms of the instrument (this includes ﬁnanc
ial guarantees, unfunded r
isk
partic
ipat
ions and other non-derivat
ive cred
it insurance). Although non-integral credit enhancements do not impact the
measurement of expected credit losses, a reimbursement asset is recognised to the extent of the ECL recorded.
8. Credit impa
irment cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
141
Directors’ Report and Financ
ial Statements 2024
Cash shortfalls are discounted using the effective interest rate (or credit-adjusted effective interest rate for purchased or
orig
inated cred
it-impa
ired
instruments (POCI)) on the ﬁnanc
ial
instrument as calculated at in
it
ial recognit
ion or
if the
instrument has a variable interest rate, the current effective interest rate determined under the contract.

Instruments | Location of expected credit loss provis ions
Financ ial assets held at amort ised cost | Loss provis ions: netted aga inst gross carrying value 1
Financ ial assets held FVOCI – Debt instruments | Other comprehensive income (FVOCI expected credit loss reserve) 2
Loan commitments | Provis ions for l iab il it ies and charges 3
Financ ial guarantees | Provis ions for l iab il it ies and charges 3

1
Purchased or orig
inated cred
it-impa
ired assets do not attract an expected cred
it loss provis
ion on
in
it
ial recognit
ion. An expected cred
it loss provis
ion w
ill be
recognised only if there is an increase in expected credit losses from that considered at in
it
ial recognit
ion
2
Debt and treasury securit
ies class
if
ied as fa
ir value through other comprehensive income (FVOCI) are held at fair value on the face of the balance sheet. The expected
credit loss attributed to these instruments is held as a separate reserve with
in other comprehens
ive income (OCI) and is recycled to the proﬁt and loss account along
with any fair value measurement gains or losses held with
in FVOCI when the appl
icable instruments are derecognised
3
Expected credit loss on loan commitments and ﬁnanc
ial guarantees
is recognised as a liab
il
ity provis
ion. Where a ﬁnancial
instrument includes both a loan
(i.e. ﬁnanc
ial asset component) and an undrawn comm
itment (i.e. loan commitment component), and it is not possible to separately ident
ify the expected cred
it loss
on these components, expected credit loss amounts on the loan commitment are recognised together with expected credit loss amounts on the ﬁnanc
ial asset.
To the extent the combined expected credit loss exceeds the gross carrying amount of the ﬁnanc
ial asset, the expected cred
it loss is recognised as a liab
il
ity provis
ion
Recognit
ion
12 months expected credit losses (stage 1)
Expected credit losses are recognised at the time of in
it
ial recognit
ion of a ﬁnancial
instrument and represent the lifet
ime
cash shortfalls aris
ing from poss
ible default events up to 12 months into the future from the balance sheet date. Expected
credit losses continue to be determined on this basis until there is either a sign
iﬁcant
increase in the credit risk of an
instrument or the instrument becomes credit-impa
ired. If an
instrument is no longer considered to exhib
it a s
ign
iﬁcant
increase in credit risk, expected credit losses will revert to being determined on a 12-month basis.
Sign
iﬁcant
increase in credit risk (Stage 2)
Sign
iﬁcant
increase in credit risk is assessed by comparing the risk of default of an exposure at the reporting date to the risk
of default at orig
inat
ion (after taking into account the passage of time). Sign
iﬁcant does not mean stat
ist
ically s
ign
iﬁcant nor
is it assessed in the context of changes in expected credit loss. Whether a change in the risk of default is sign
iﬁcant or not
is
assessed using a number of quantitat
ive and qual
itat
ive factors, the we
ight of which depends on the type of product and
counterparty. Financ
ial assets that are 30 or more days past due and not cred
it-impa
ired w
ill always be considered to have
experienced a sign
iﬁcant
increase in credit risk. For less material portfolios where a loss rate or roll rate approach is applied to
compute expected credit loss, sign
iﬁcant
increase in credit risk is primar
ily based on 30 days past due.
Quantitat
ive factors
include an assessment of whether there has been sign
iﬁcant
increase in the forward-looking probabil
ity
of default (PD) since orig
inat
ion. A forward-looking PD is one that is adjusted for future economic condit
ions to the extent
these are correlated to changes in credit risk. We compare the residual lifet
ime PD at the balance sheet date to the res
idual
lifet
ime PD that was expected at the t
ime of orig
inat
ion for the same point in the term structure and determine whether both
the absolute and relative change between the two exceeds predetermined thresholds. To the extent that the differences
between the measures of default outlined exceed the deﬁned thresholds, the instrument is considered to have experienced
a sign
iﬁcant
increase in credit risk (see page 93 to 95).
Qualitat
ive factors assessed
include those linked to current credit risk management processes, such as lending placed on
non-purely precautionary early alert (and subject to closer monitor
ing).
A non-purely precautionary early alert account is one which exhib
its r
isk or potential weaknesses of a material nature
requir
ing closer mon
itor
ing, superv
is
ion, or attent
ion by management. Weaknesses in such a borrower’s account, if left
uncorrected, could result in deteriorat
ion of repayment prospects and the l
ikel
ihood of be
ing downgraded. Indicators
could include a rapid erosion of posit
ion w
ith
in the
industry, concerns over management’s abil
ity to manage operat
ions,
weak/deteriorat
ing operat
ing results, liqu
id
ity strain and overdue balances among other factors.
8. Credit impa
irment cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
142
Directors’ Report and Financ
ial Statements 2024
Credit-impa
ired (or defaulted) exposures (Stage 3)
Financ
ial assets that are cred
it-impa
ired (or
in default) represent those that are at least 90 days past due in respect of
princ
ipal and/or
interest. Financ
ial assets are also cons
idered to be credit-impa
ired where the obl
igors are unlikely to pay
on the occurrence of one or more observable events that have a detrimental impact on the estimated future cash ﬂows of
the ﬁnancial asset. It may not be poss
ible to ident
ify a s
ingle discrete event but instead the combined effect of several events
may cause ﬁnancial assets to become cred
it-impa
ired.
•
Evidence that a ﬁnanc
ial asset
is credit-impa
ired
includes observable data about the following events:
•
Sign
iﬁcant ﬁnancial d
iff
iculty of the
issuer or borrower;
•
Breach of contract such as default or a past due event;
•
For economic or contractual reasons relating to the borrower’s ﬁnanc
ial d
iff
iculty, the lenders of the borrower have granted
the borrower concession/s that lenders would not otherwise consider. This would include forbearance actions (page 76);
•
Pending or actual bankruptcy or other ﬁnanc
ial reorgan
isat
ion to avo
id or delay discharge of the borrower’s obligat
ion/s;
•
The disappearance of an active market for the applicable ﬁnanc
ial asset due to ﬁnancial d
iff
icult
ies of the borrower;
•
Purchase or orig
inat
ion of a ﬁnanc
ial asset at a deep d
iscount that reﬂects incurred credit losses
Lending commitments to a credit-impa
ired obl
igor that have not yet been drawn down are included to the extent that
the commitment cannot be withdrawn. Loss provis
ions aga
inst credit-impa
ired ﬁnancial assets are determ
ined based
on an assessment of the present value of expected cash shortfalls (discounted at the instrument’s orig
inal effect
ive
interest rate) under a range of scenarios, includ
ing the real
isat
ion of any collateral held where appropr
iate. The Group’s
deﬁnit
ion of default is aligned with the regulatory deﬁn
it
ion of default as set out in the UK’s onshored capital requirements
regulations (Art 178).
Expert credit judgement
For Corporate & Investment and Private Banking, borrowers are graded by credit risk management on
a credit grading (CG) scale from CG1 to CG14. Once a borrower starts to exhib
it cred
it deteriorat
ion,
it will move along the
credit grading scale in the performing book and when it is classif
ied as CG12 (wh
ich is a qualitat
ive tr
igger for sign
iﬁcant
increase in credit risk (see page 94)the credit assessment and oversight of the loan will normally be performed by Stressed
Assets Risk (SAR).
Borrowers graded CG12 exhib
it well-deﬁned weaknesses
in areas such as management and/or performance but there
is no current expectation of a loss of princ
ipal or
interest in the likely scenario. Where the impa
irment assessment
ind
icates
that there will be a loss of princ
ipal on a loan
in the likely scenario, the borrower is graded a CG14 while borrowers of other
credit-impa
ired loans are graded CG13. Instruments graded CG13 or CG14 are regarded as stage 3.
For ind
iv
idually sign
iﬁcant ﬁnancial assets w
ith
in stage 3, SAR w
ill consider all judgements that have an impact on the
expected future cash ﬂows of the asset. These include: the business prospects, industry and geo polit
ical cl
imate of the
customer, quality of realisable value of collateral, the Group’s legal posit
ion relat
ive to other claimants and any renegotiat
ion/
forbearance/ modif
icat
ion options. The future cash ﬂow calculation involves sign
iﬁcant judgements and est
imates. As new
informat
ion becomes ava
ilable and further negotiat
ions/ forbearance measures are taken the est
imates of the future cash
ﬂows will be revised, and will have an impact on the future cash ﬂow analysis.
For ﬁnancial assets wh
ich are not ind
iv
idually sign
iﬁcant, such as the Reta
il Banking portfolio or small business loans, which
comprise a large number of homogenous loans that share sim
ilar character
ist
ics, stat
ist
ical est
imates and techniques are
used, as well as credit scoring analysis.
Consumer and Business Banking clients are considered credit-impa
ired where they are more 90 days past due, or
if the
borrower ﬁles for bankruptcy or other forbearance programme, the borrower is deceased or the business is closed in the
case of a small business, or if the borrower surrenders the collateral, or there is an ident
iﬁed fraud on the account. Add
it
ionally,
if the account is unsecured and the borrower has other credit accounts with the Group that are considered credit-impa
ired,
the account may be also be credit-impa
ired.
Techniques used to compute impa
irment amounts use models wh
ich analyse histor
ical repayment and default rates over
a time horizon. Where various models are used, judgement is required to analyse the available informat
ion prov
ided and
select the appropriate model or combinat
ion of models to use.
Expert credit judgement is also applied to determine whether any post-model adjustments are required for credit risk
elements which are not captured by the models.
8. Credit impa
irment cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
143
Directors’ Report and Financ
ial Statements 2024
Modif
ied ﬁnancial
instruments
Where the orig
inal contractual terms of a ﬁnancial asset have been mod
if
ied for cred
it reasons and the instrument has not
been derecognised (an instrument is derecognised when a modif
icat
ion results in a change in cash ﬂows that the Group
would consider substantial), the resulting modif
icat
ion loss is recognised with
in cred
it impa
irment
in the income statement
with a corresponding decrease in the gross carrying value of the asset. If the modif
icat
ion involved a concession that the
bank would not otherwise consider, the instrument is considered to be credit-impa
ired and
is considered forborne.
Expected credit loss for modif
ied ﬁnancial assets that have not been derecogn
ised and are not considered to be credit-
impa
ired w
ill be recognised on a 12-month basis, or a lifet
ime bas
is, if there is a sign
iﬁcant
increase in credit risk. These assets
are assessed (by comparison to the orig
inat
ion date) to determine whether there has been a sign
iﬁcant
increase in credit risk
subsequent to the modif
icat
ion. Although loans may be modif
ied for non-cred
it reasons, a sign
iﬁcant
increase in credit risk
may occur. In addit
ion to the recogn
it
ion of mod
if
icat
ion gains and losses, the revised carrying value of modif
ied ﬁnancial
assets will impact the calculation of expected credit losses, with any increase or decrease in expected credit loss recognised
with
in
impa
irment.
Forborne loans
Forborne loans are those loans that have been modif
ied
in response to a customer’s ﬁnanc
ial d
iff
icult
ies. Forbearance
strategies assist clients who are temporarily in ﬁnanc
ial d
istress and are unable to meet their orig
inal contractual repayment
terms. Forbearance can be in
it
iated by the client, the Group or a third-party includ
ing government sponsored programmes
or a conglomerate of credit inst
itut
ions. Forbearance may include debt restructuring such as new repayment schedules,
payment deferrals, tenor extensions, interest only payments, lower interest rates, forgiveness of princ
ipal,
interest or fees,
or relaxation of loan covenants.
Forborne loans that have been modif
ied (and not derecogn
ised) on terms that are not consistent with those readily available
in the market and/or where we have granted a concession compared to the orig
inal terms of the loans are cons
idered
credit-impa
ired
if there is a detrimental impact on cash ﬂows. The modif
icat
ion loss (see Classif
icat
ion and measurement –
Modif
icat
ions) is recognised in the proﬁt or loss with
in cred
it impa
irment and the gross carry
ing value of the loan reduced
by the same amount. The modif
ied loan
is disclosed as ‘Loans subject to forbearance – credit-impa
ired’.
Loans that have been subject to a forbearance modif
icat
ion, but which are not considered credit-impa
ired (not class
if
ied
as CG13 or CG14), are disclosed as ‘Forborne – not credit-impa
ired’. Th
is may include amendments to covenants with
in the
contractual terms.
Write-offs of credit-impa
ired
instruments and reversal of impa
irment
To the extent a ﬁnancial debt
instrument is considered irrecoverable, the applicable portion of the gross carrying value is
written off against the related loan provis
ion. Such loans are wr
itten off after all the necessary procedures have been
completed, it is decided that there is no realist
ic probab
il
ity of recovery and the amount of the loss has been determ
ined.
Subsequent recoveries of amounts previously written off decrease the amount of the provis
ion for cred
it impa
irment
in the
income statement.
Loss provis
ions on purchased or or
ig
inated cred
it-impa
ired
instruments (POCI)
The Group measures expected credit loss on a lifet
ime bas
is for POCI instruments throughout the life of the instrument.
However, expected credit loss is not recognised in a separate loss provis
ion on
in
it
ial recognit
ion for POCI
instruments
as the lifet
ime expected cred
it loss is inherent with
in the gross carry
ing amount of the instruments. The Group recognises
the change in lifet
ime expected cred
it losses aris
ing subsequent to
in
it
ial recognit
ion
in the income statement and the
cumulative change as a loss provis
ion. Where l
ifet
ime expected cred
it losses on POCI instruments are less than those
at in
it
ial recognit
ion, then the favourable d
ifferences are recognised as impa
irment ga
ins in the income statement (and as
impa
irment loss where the expected cred
it losses are greater).
Improvement in credit risk/curing
For ﬁnancial assets that are cred
it-impa
ired (stage 3), a transfer to stage 2 or stage 1
is only permitted where the instrument is
no longer considered to be credit-impa
ired. An
instrument will no longer be considered credit-impa
ired when there
is no
shortfall of cash ﬂows compared to the orig
inal contractual terms.
For ﬁnancial assets w
ith
in stage 2, these can only be transferred to stage 1 when they are no longer cons
idered to have
experienced a sign
iﬁcant
increase in credit risk.
Where sign
iﬁcant
increase in credit risk was determined using quantitat
ive measures, the
instruments will automatically
transfer back to stage 1 when the orig
inal PD based transfer cr
iter
ia are no longer met. Where
instruments were transferred
to stage 2 due to an assessment of qualitat
ive factors, the
issues that led to the reclassif
icat
ion must be cured before the
instruments can be reclassif
ied to stage 1. Th
is includes instances where management actions led to instruments being
classif
ied as stage 2, requ
ir
ing that act
ion to be resolved before loans are reclassif
ied to stage 1.
8. Credit impa
irment cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
144
Directors’ Report and Financ
ial Statements 2024
A forborne loan can only be removed from being disclosed as forborne if the loan is performing (stage 1 or 2) and a further
two-year probation period is met.
In order for a forborne loan to become performing, the following criter
ia have to be sat
isf
ied:
•
At least a year has passed with no default based upon the forborne contract terms
•
The customer is likely to repay its obligat
ions
in full without realis
ing secur
ity
•
The customer has no accumulated impa
irment aga
inst amount outstanding (except for ECL)
Subsequent to the criter
ia above, a further two-year probat
ion period has to be fulﬁlled, whereby regular payments are
made by the customer and none of the exposures to the customer are more than 30 days past due.

| 2024 | 2023
| $mill ion | $mill ion
Net credit impa irment on loans and advances to banks and customers | 58 | 55
Net credit impa irment / (release) aga inst proﬁt or loss during the period relating to debt securit ies 1 | (58) | (50)
Net credit impa irment / (release) relat ing to ﬁnanc ial guarantees and loan comm itments | 18 | (63)
Net credit impa irment / (release) relat ing to other ﬁnanc ial assets | (3) | –
Credit impa irment/(release) 1 | 15 | (58)

1
Includes impa
irment release of $14 m
ill
ion (31 December 2023: $1 m
ill
ion charge) on or
ig
inated cred
it-impa
ired debt secur
it
ies
9. Goodwill, ﬁxed assets and other impa
irment
Accounting policy
Refer to the below referenced notes for the relevant accounting policy.

| 2024 | 2023
| $mill ion | $mill ion
Impairment of property, plant and equipment (Note 17) | 2 | (1)
Impairment of other intang ible assets (Note 16) | 383 | 35
Other | 25 | 8
Goodwill, ﬁxed assets and other impa irment | 410 | 42

10. Taxation
Accounting policy
Income tax payable on proﬁts is based on the applicable tax law in each jur
isd
ict
ion and
is recognised as an expense in
the period in which proﬁts arise.
Deferred tax is provided on temporary differences aris
ing between the tax bases of assets and l
iab
il
it
ies and the
ir carrying
amounts in the consolidated ﬁnanc
ial statements. Deferred tax
is determined using tax rates (and laws) that have been
enacted or substantively enacted as at the balance sheet date, and that are expected to apply when the related deferred
tax asset is realised or the deferred income tax liab
il
ity is settled.
Deferred tax assets are recognised where it is probable that future taxable proﬁt will be available against which the
temporary differences can be util
ised. Where perm
itted, deferred tax assets and liab
il
it
ies are offset on an ent
ity basis
and not by component of deferred taxation.
Current and deferred tax relating to items which are charged or credited directly to equity, is credited or charged directly
to equity and is subsequently recognised in the income statement together with the current or deferred gain or loss.
Other accounting estimates and judgements
•
Determin
ing the Group’s tax charge for the year
involves estimat
ion and judgement, wh
ich includes an interpretat
ion of
local tax laws and an assessment of whether the tax authorit
ies w
ill accept the posit
ion taken. These judgements take
account of external advice where appropriate, and the Group’s view on settling with the relevant tax authorit
ies.
•
The Group provides for current tax liab
il
it
ies at the best est
imate of the amount that is expected to be paid to the tax
authorit
ies where an outﬂow
is probable. In making its estimates the Group assumes that the tax authorit
ies w
ill examine
all the amounts reported to them and have full knowledge of all relevant informat
ion.
•
The recoverabil
ity of the Group’s deferred tax assets
is based on management’s judgement of the availab
il
ity of future
taxable proﬁts against which the deferred tax assets will be util
ised. In prepar
ing management forecasts the effect of
applicable laws and regulations relevant to the util
isat
ion of future taxable proﬁts have been considered.
10. Taxation continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
145
Directors’ Report and Financ
ial Statements 2024
The following table provides analysis of taxation charge in the year:

| 2024 | 2023
| $mill ion | $mill ion
The charge for taxation based upon the proﬁt for the year comprises: |  |
Current tax: |  |
United Kingdom corporation tax at 25 per cent (2023: 23.5 per cent): |  |
Current tax charge on income for the year | – | (111)
Adjustments in respect of prior years (includ ing double tax rel ief) | 1 | 16
Foreign tax: |  |
Current tax charge on income for the year | 1,357 | 1,200
Adjustments in respect of prior years | (7) | 6
| 1,351 | 1,111
Deferred tax: |  |
Orig inat ion/reversal of temporary differences | 123 | 76
Adjustments in respect of prior years | (9) | (10)
| 114 | 66
Tax on proﬁts on ordinary activ it ies | 1,465 | 1,177
Effective tax rate | 32.9% | 26.7%

The tax charge for the year of $1,465 mill
ion (31 December 2023: $1,177 m
ill
ion) on a proﬁt before tax of $4,447 m
ill
ion
(31 December 2023: $4,414 mill
ion) reﬂects the
impact of non-creditable withhold
ing taxes and other taxes,
and non-deductible expenses.
Tax rate: The tax charge for the year is higher than the charge at the rate of corporation tax in the UK, 25 per cent.
The differences are explained below:

| 2024 | 2023
| $mill ion | % | $mill ion | %
Proﬁt on ordinary activ it ies before tax | 4,447 |  | 4,414 |
Tax at 25 per cent (2023: 23.5 per cent) | 1,112 | 25.0 | 1,037 | 23.5
Lower tax rates on overseas earnings | (274) | (6.2) | (264) | (6.0)
Higher tax rates on overseas earnings | 269 | 6.1 | 302 | 6.8
Tax at domestic rates applicable where proﬁts earned | 1,107 | 24.9 | 1,075 | 24.3
Non-creditable withhold ing taxes and other taxes | 221 | 5.0 | 70 | 1.6
Tax exempt income | (51) | (1.1) | (20) | (0.5)
Non-deductible expenses | 156 | 3.5 | 146 | 3.3
Bank levy | 23 | 0.5 | 26 | 0.6
Non-taxable losses on investments 1 | 50 | 1.1 | (98) | (2.2)
Payments on ﬁnancial instruments in reserves | (75) | (1.7) | (65) | (1.5)
Deferred tax not recognised | 64 | 1.4 | 34 | 0.8
Deferred tax rate changes | (3) | (0.1) | (3) | –
Adjustments to tax charge in respect of prior years | (15) | (0.3) | 12 | 0.3
Other items | (12) | (0.3) | – | –
Tax on proﬁt on ordinary activ it ies | 1,465 | 32.9 | 1,177 | 26.7

1
2024 Includes tax impact of $55m (2023: $nil) relating to loss on sale of subsid
iar
ies in Africa.
Factors affecting the tax charge in future years: the Group’s tax charge, and effective tax rate in future years could be
affected by several factors includ
ing acqu
is
it
ions, disposals and restructuring of our businesses, the mix of proﬁts across
jurisd
ict
ions w
ith different reported tax rates, changes in tax legislat
ion and tax rates and resolut
ion of uncertain tax
posit
ions.
The evaluation of uncertain tax posit
ions
involves an interpretat
ion of local tax laws wh
ich could be subject to challenge by
a tax authority, and an assessment of whether the tax authorit
ies w
ill accept the posit
ion taken. The Group does not currently
consider that assumptions or judgements made in assessing tax liab
il
it
ies have a s
ign
iﬁcant r
isk of resulting in a material
adjustment with
in the next ﬁnancial year.
10. Taxation continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
146
Directors’ Report and Financ
ial Statements 2024

| 2024 | 2023
| Current tax | Deferred tax | Total | Current tax | Deferred tax | Total
Tax recognised in other comprehensive income | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Items that will not be reclassif ied to income statement | (16) | 108 | 92 | – | (75) | (75)
Own credit adjustment | 1 | 27 | 28 | – | (26) | (26)
Equity instruments at fair value through other |  |  |  |  |  |
comprehensive income | (17) | 89 | 72 | – | (56) | (56)
Retirement beneﬁt obligat ions | – | (8) | (8) | – | 7 | 7
Items that may be reclassed subsequently to |  |  |  |  |  |
income statement | (7) | (31) | (38) | – | (91) | (91)
Debt instruments at fair value through other |  |  |  |  |  |
comprehensive income | (7) | (20) | (27) | – | (8) | (8)
Cash ﬂow hedges | – | (11) | (11) | – | (83) | (83)
Total tax credit/(charge) recognised in equity | (23) | 77 | 54 | – | (166) | (166)

Current tax:
The following are the movements in current tax during the year:

| Group | Company
| 2024 | 2023 | 2024 | 2023
Current tax comprises: | $mill ion | $mill ion | $mill ion | $mill ion
Current tax assets | 484 | 446 | 395 | 347
Current tax liab il it ies | (445) | (556) | (188) | (329)
Net current tax opening balance | 39 | (110) | 207 | 18
Movements in income statement | (1,351) | (1,111) | (681) | (487)
Movements in other comprehensive income | (23) | – | (23) | –
Taxes paid | 1,422 | 1,229 | 720 | 658
Other movements | (2) | 31 | (1) | 18
Net current tax balance as at 31 December | 85 | 39 | 222 | 207
Current tax assets | 644 | 484 | 516 | 395
Current tax liab il it ies | (559) | (445) | (294) | (188)
Total | 85 | 39 | 222 | 207

Deferred tax:
The following are the major deferred tax liab
il
it
ies and assets recogn
ised by the Group and movements
thereon during the year:
Group

|  | Exchange & |  | (Charge)/ | At 31
| At 1 January | other | (Charge)/ | credit to | December
| 2024 | adjustments | credit to proﬁt | equity | 2024
Deferred tax comprises: | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Accelerated tax depreciat ion | (318) | 8 | 53 | (3) | (260)
Impairment provis ions on loans and advances | 203 | (9) | (16) | – | 178
Tax losses carried forward | 70 | (24) | 23 | – | 69
Equity instruments at fair value through other |  |  |  |  |
comprehensive income | (126) | 5 | – | 89 | (32)
Debt instruments at fair value through other comprehensive income | 28 | 4 | (15) | (20) | (3)
Cashﬂow hedges | 3 | 1 | – | (11) | (7)
Own credit adjustment | (52) | 25 | – | 27 | –
Retirement beneﬁt obligat ions | 2 | (4) | 3 | (8) | (7)
Share-based payments | 30 | – | 11 | – | 41
Other temporary differences | 80 | 2 | (173) | 35 | (56)
Net deferred tax assets/liab il it ies | (80) | 8 | (114) | 109 | (77)

10. Taxation continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
147
Directors’ Report and Financ
ial Statements 2024

|  | Exchange & |  | (Charge)/ | At 31
| At 1 January | other | (Charge)/ | credit to | December
| 2023 | adjustments | credit to proﬁt | equity | 2023
Deferred tax comprises: | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Accelerated tax depreciat ion | (306) | (4) | (8) | – | (318)
Impairment provis ions on loans and advances | 222 | (19) | – | – | 203
Tax losses carried forward | 89 | 32 | (51) | – | 70
Equity instruments at fair value through other |  |  |  |  |
comprehensive income | (74) | 4 | – | (56) | (126)
Debt instruments at fair value through other comprehensive income | 53 | (14) | (3) | (8) | 28
Cashﬂow hedges | 88 | (2) | – | (83) | 3
Own credit adjustment | – | (26) | – | (26) | (52)
Retirement beneﬁt obligat ions | 2 | 2 | (9) | 7 | 2
Share-based payments | 26 | – | 4 | – | 30
Other temporary differences | 64 | 15 | 1 | – | 80
Net deferred tax assets/liab il it ies | 164 | (12) | (66) | (166) | (80)

Deferred tax comprises assets and liab
il
it
ies as follows:

| 2024 | 2023
| Total | Asset | Liab il ity | Total | Asset | Liab il ity
Deferred tax comprises: | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Accelerated tax depreciat ion | (260) | 29 | (289) | (318) | 12 | (330)
Impairment provis ions on loans and advances | 178 | 153 | 25 | 203 | 192 | 11
Tax losses carried forward | 69 | 46 | 23 | 70 | 22 | 48
Equity instruments at fair value through other |  |  |  |  |  |
comprehensive income | (32) | (7) | (25) | (126) | (1) | (125)
Debt instruments at fair value through other |  |  |  |  |  |
comprehensive income | (3) | 5 | (8) | 28 | 28 | –
Cashﬂow hedges | (7) | (2) | (5) | 3 | 12 | (9)
Own credit adjustment | – | – | – | (52) | – | (52)
Retirement beneﬁt obligat ions | (7) | 14 | (21) | 2 | 9 | (7)
Share-based payments | 41 | 7 | 34 | 30 | 3 | 27
Other temporary differences | (56) | 105 | (161) | 80 | 225 | (145)
| (77) | 350 | (427) | (80) | 502 | (582)

Deferred tax: The following are the major deferred tax liab
il
it
ies and assets recogn
ised by the Company and movements
thereon during the year:
Company

|  | Exchange & |  | (Charge)/ | At 31
| At 1 January | other | (Charge)/ | credit to | December
| 2024 | adjustments | credit to proﬁt | equity | 2024
Deferred tax comprises: | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Accelerated tax depreciat ion | (264) | 8 | 54 | – | (202)
Impairment provis ions on loans and advances | 121 | (7) | (18) | – | 96
Tax losses carried forward | 70 | (25) | 5 | – | 50
Equity instruments at fair value through other |  |  |  |  |
comprehensive income | (123) | 2 | – | 91 | (30)
Debt instruments at fair value through other comprehensive income | 49 | (1) | – | (26) | 22
Cashﬂow hedges | 5 | 3 | – | (12) | (4)
Own credit adjustment | (52) | 25 | – | 27 | –
Retirement beneﬁt obligat ions | (5) | (6) | 3 | (7) | (15)
Share-based payments | 11 | – | 5 | – | 16
Other temporary differences | 90 | 2 | (100) | – | (8)
Net deferred tax assets/liab il it ies | (98) | 1 | (51) | 73 | (75)

10. Taxation continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
148
Directors’ Report and Financ
ial Statements 2024

|  | Exchange & |  | (Charge)/ | At 31
| At 1 January | other | (Charge)/ | credit to | December
| 2023 | adjustments | credit to proﬁt | equity | 2023
Deferred tax comprises: | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Accelerated tax depreciat ion | (270) | (3) | 9 | – | (264)
Impairment provis ions on loans and advances | 135 | (2) | (12) | – | 121
Tax losses carried forward | 67 | 32 | (29) | – | 70
Equity instruments at fair value through other |  |  |  |  |
comprehensive income | (65) | (4) | – | (54) | (123)
Debt instruments at fair value through other comprehensive income | 61 | – | – | (12) | 49
Cashﬂow hedges | 86 | (2) | – | (79) | 5
Own credit adjustment | – | (25) | – | (27) | (52)
Retirement beneﬁt obligat ions | 1 | 1 | (11) | 4 | (5)
Share-based payments | 10 | – | 1 | – | 11
Other temporary differences | 68 | (3) | 25 | – | 90
Net deferred tax assets/liab il it ies | 93 | (6) | (17) | (168) | (98)

Deferred tax of the Company comprises assets and liab
il
it
ies as follows:

| 2024 | 2023
| Total | Asset | Liab il ity | Total | Asset | Liab il ity
Deferred tax comprises: | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Accelerated tax depreciat ion | (202) | 31 | (233) | (264) | 12 | (276)
Impairment provis ions on loans and advances | 96 | 96 | – | 121 | 113 | 8
Tax losses carried forward | 50 | 26 | 24 | 70 | 22 | 48
Equity instruments at fair value through other |  |  |  |  |  |
comprehensive income | (30) | (7) | (23) | (123) | (1) | (122)
Debt instruments at fair value through other |  |  |  |  |  |
comprehensive income | 22 | 22 | – | 49 | 50 | (1)
Cashﬂow hedges | (4) | (2) | (2) | 5 | 12 | (7)
Own credit adjustment | – | – | – | (52) | – | (52)
Retirement beneﬁt obligat ions | (15) | 9 | (24) | (5) | 4 | (9)
Share-based payments | 16 | 6 | 10 | 11 | 3 | 8
Other temporary differences | (8) | 52 | (60) | 90 | 164 | (74)
| (75) | 233 | (308) | (98) | 379 | (477)

Group
The recoverabil
ity of the Group’s deferred tax assets
is based on management’s judgement of the availab
il
ity of future
taxable proﬁts against which the deferred tax assets will be util
ised. The Group’s total deferred tax assets
include $69 mill
ion
relating to tax losses carried forward, of which $23 mill
ion ar
ises in legal entit
ies w
ith offsetting deferred tax liab
il
it
ies.
The remain
ing deferred tax assets on losses of $46 m
ill
ion are forecast to be recovered before exp
iry and with
in ﬁve years.
Company
The recoverabil
ity of the Company’s deferred tax assets
is based on management’s judgement of the availab
il
ity of
future taxable proﬁts against which the deferred tax assets will be util
ised. The Company’s total deferred tax assets
include $50 mill
ion relat
ing to tax losses carried forward, of which $24 mill
ion ar
ises in legal entit
ies w
ith offsetting
deferred tax liab
il
it
ies. The rema
in
ing deferred tax assets on losses of $26 m
ill
ion are forecast to be recovered before
expiry and with
in ﬁve years.
10. Taxation continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
149
Directors’ Report and Financ
ial Statements 2024
Unrecognised deferred tax

| Net | Gross | Net | Gross
| 2024 | 2024 | 2023 | 2023
Group | $mill ion | $mill ion | $mill ion | $mill ion
No account has been taken of the following potential deferred |  |  |  |
tax assets/(liab il it ies): |  |  |  |
Withhold ing tax on unrem itted earnings from overseas subsid iar ies |  |  |  |
and associates | (358) | (2,719) | (347) | (2,634)
Tax losses | 1,027 | 4,099 | 920 | 3,683
Held over gains on incorporation of overseas branches | (171) | (610) | (174) | (621)
Other temporary differences | 345 | 1,310 | 377 | 1,436

| Net | Gross | Net | Gross
| 2024 | 2024 | 2023 | 2023
Company | $mill ion | $mill ion | $mill ion | $mill ion
No account has been taken of the following potential deferred |  |  |  |
tax assets/(liab il it ies): |  |  |  |
Withhold ing tax on unrem itted earnings from overseas subsid iar ies |  |  |  |
and associates | (243) | (1,768) | (241) | (1,694)
Tax losses | 911 | 3,530 | 827 | 3,215
Held over gains on incorporation of overseas branches | (171) | (610) | (174) | (621)
Other temporary differences | 333 | 1,245 | 369 | 1,397

11. Div
idends
Accounting policy
The Court considers a number of factors which include the rate of recovery in the Group’s ﬁnanc
ial performance, the
macroeconomic environment, and opportunit
ies to further
invest in our business and grow proﬁtably in our markets.
Ordinary equity shares

| 2024 | 2023
| Cents per |  | Cents per |
| share | $mill ion | share | $mill ion
2023/2022 ﬁnal div idend declared and pa id during the year | 6 | 1,240 | 8 | 1,661
2024/2023 Interim dividend declared and paid during the year | 6 | 1,155 | 5 | 938

Div
idends on ord
inary equity shares are recorded in the period in which they are declared and, in respect of the ﬁnal div
idend,
have been approved by the shareholders.
Preference shares and Addit
ional T
ier 1 securit
ies
Div
idends on these preference shares and secur
it
ies class
if
ied as equ
ity are recorded in the period in which they are declared

| 2024 | 2023
| $mill ion | $mill ion
Non-cumulative redeemable preference shares: |  |
7.014 per cent preference shares of $5 each | – | 45
Floating rate preference shares of $5 each 1 | 54 | 50
| 54 | 95
Addit ional T ier 1 securit ies: F ixed rate resetting perpetual subordinated contingent convertible securit ies | 295 | 268
| 349 | 363

1
Floating rate is based on Secured Overnight Financ
ing Rate (SOFR), average rate pa
id for ﬂoating preference shares is 7.21% (2023: 6.62%)
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
150
Directors’ Report and Financ
ial Statements 2024
12. Financ
ial
instruments
Classif
icat
ion and measurement
Accounting policy
Financ
ial assets held at amort
ised cost and fair value through other comprehensive income
Debt instruments held at amortised cost or held at FVOCI have contractual terms that give rise to cash ﬂows that are solely
payments of princ
ipal and
interest (SPPI) characterist
ics.
In assessing whether the contractual cash ﬂows have SPPI characterist
ics, the Group cons
iders the contractual terms of the
instrument. This includes assessing whether the ﬁnanc
ial asset conta
ins a contractual term that could change the tim
ing or
amount of contractual cash ﬂows such that it would not meet this condit
ion. In mak
ing the assessment, the Group considers:
•
Contingent events that would change the amount and tim
ing of cash ﬂows
• Leverage features
• Prepayment and extension terms
•
Terms that lim
it the Group’s cla
im to cash ﬂows from specif
ied assets (e.g. non-recourse asset arrangements)
•
Features that modify considerat
ion of the t
ime value of money – e.g. period
ical reset of
interest rates
Whether ﬁnancial assets are held at amort
ised cost or at FVOCI depends on the object
ives of the bus
iness models under
which the assets are held. A business model refers to how the Group manages ﬁnanc
ial assets to generate cash ﬂows.
The Group makes an assessment of the objective of a bus
iness model in which an asset is held at the ind
iv
idual product
business line, and where applicable with
in bus
iness lines depending on the way the business is managed and informat
ion
is provided to management. Factors considered include:
•
How the performance of the product business line is evaluated and reported to the Group’s management
•
How managers of the business model are compensated, includ
ing whether management
is compensated based on
the fair value of assets or the contractual cash ﬂows collected
•
The risks that affect the performance of the business model and how those risks are managed
•
The frequency, volume and tim
ing of sales
in prior periods, the reasons for such sales and expectations about future
sales activ
ity
The Group’s business model assessment is as follows:

Business model | Business object ive | Characterist ics | Businesses | Products
Hold to collect | Intent is to orig inate ﬁnancial | • | Provid ing ﬁnancing and or ig inat ing | • Global Banking | • Loans and
| assets and hold them to |  | assets to earn interest income | • Transaction | advances
| maturity, collecting the |  | as primary income stream | Banking | • Debt securit ies
| contractual cash ﬂows over |  | • Performing credit risk | • Retail Lending |
| the term of the instrument |  | management activ it ies | • Treasury Markets |
|  | • | Costs include funding costs, | (Loans and |
|  |  | transaction costs and | Borrowings) |
|  |  | impa irment losses |  |
Hold to collect | Business object ive met | • | Portfolios held for liqu id ity needs; | • Treasury Markets | • Debt securit ies
and sell | through both hold to collect |  | or where a certain interest yield |  |
| and by selling ﬁnanc ial assets |  | proﬁle is mainta ined; or that are |  |
|  |  | normally rebalanced to achieve |  |
|  |  | matching of duration of assets |  |
|  |  | and liab il it ies |  |
|  | • | Income streams come from |  |
|  |  | interest income, fair value changes, |  |
|  |  | and impa irment losses |  |
Fair value through | All other business object ives, | • | Assets held for trading | • Treasury Markets | • Derivat ives
proﬁt or loss | includ ing trad ing and | • | Assets that are orig inated, | • All other | • Equity shares
| managing ﬁnanc ial assets |  | purchased, and sold for proﬁt | business lines | • Trading portfolios
| on a fair value basis |  | taking or underwrit ing act iv ity |  | • Reverse repos
|  | • | Performance of the portfolio is |  | • Bond and Loan
|  |  | evaluated on a fair value basis |  | Syndicat ion
|  | • | Income streams are from fair value |  |
|  |  | changes or trading gains or losses |  |

12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
151
Directors’ Report and Financ
ial Statements 2024
Financ
ial assets wh
ich have SPPI characterist
ics and that are held w
ith
in a bus
iness model whose object
ive
is to hold ﬁnanc
ial
assets to collect contractual cashﬂows (hold to collect) are recorded at amortised cost. Conversely, ﬁnanc
ial assets wh
ich
have SPPI characterist
ics but are held w
ith
in a bus
iness model whose object
ive
is achieved by both collecting contractual
cashﬂows and selling ﬁnanc
ial assets (Hold to collect and sell) are class
if
ied as held at FVOCI. Both hold to collect and hold to
collect and sell business models involve holding ﬁnanc
ial assets to collect the contractual cashﬂows. However, the bus
iness
models are dist
inct by reference to the frequency and s
ign
iﬁcance that asset sales play
in meeting the object
ive under wh
ich
a particular group of ﬁnanc
ial assets
is managed. Hold to collect business models are characterised by asset sales that are
inc
idental to meet
ing the object
ives under wh
ich a group of assets is managed. Sales of assets under a hold to collect
business model can be made to manage increases in the credit risk of ﬁnanc
ial assets but sales for other reasons should be
infrequent or ins
ign
if
icant. Cashﬂows from the sale of ﬁnancial assets under a hold to collect and sell bus
iness model by
contrast are integral to achiev
ing the objectives under wh
ich a particular group of ﬁnanc
ial assets are managed. Th
is may
be the case where frequent sales of ﬁnancial assets are requ
ired to manage the Group’s daily liqu
id
ity requirements or to
meet regulatory requirements to demonstrate liqu
id
ity of ﬁnanc
ial
instruments. Sales of assets under hold to collect and sell
business models are therefore both more frequent and more sign
iﬁcant
in value than those under the hold to collect model.
Equity instruments designated as held at FVOCI
Non-trading equity instruments acquired for strategic purposes rather than capital gain may be irrevocably designated at
in
it
ial recognit
ion as held at FVOCI on an
instrument-by-instrument basis. Div
idends rece
ived are recognised in proﬁt or loss.
Gains and losses aris
ing from changes
in the fair value of these instruments, includ
ing fore
ign exchange gains and losses,
are recognised directly in equity and are never reclassif
ied to proﬁt or loss even on derecogn
it
ion.
Mandatorily classif
ied at fa
ir value through proﬁt or loss
Financ
ial assets and l
iab
il
it
ies wh
ich are mandatorily held at fair value through proﬁt or loss are split between two
subcategories as follows:
Trading, includ
ing:
•
Financ
ial assets and l
iab
il
it
ies held for trad
ing, which are those acquired princ
ipally for the purpose of sell
ing in the
short-term
• Derivat
ives
Non-trading mandatorily at fair value through proﬁt or loss, includ
ing:
•
Instruments in a business which has a fair value business model (see the Group’s business model assessment) which are
not trading or derivat
ives
•
Hybrid ﬁnanc
ial assets that conta
in one or more embedded derivat
ives
•
Financ
ial assets that would otherw
ise be measured at amortised cost or FVOCI but which do not have SPPI characterist
ics
•
Equity instruments that have not been designated as held at FVOCI
•
Financ
ial l
iab
il
it
ies that const
itute contingent considerat
ion
in a business combinat
ion
Designated at fair value through proﬁt or loss
Financ
ial assets and l
iab
il
it
ies may be des
ignated at fair value through proﬁt or loss when the designat
ion el
im
inates or
sign
iﬁcantly reduces a measurement or recogn
it
ion
incons
istency that would otherw
ise arise from measuring assets or
liab
il
it
ies on a d
ifferent basis (‘accounting mismatch’).
Financ
ial l
iab
il
it
ies may also be des
ignated at fair value through proﬁt or loss where they are managed on a fair value basis or
have an embedded derivat
ive where the Group
is not able to separately value, and thus bifurcate, the embedded derivat
ive
component.
Financ
ial l
iab
il
it
ies held at amort
ised cost
Financ
ial l
iab
il
it
ies that are not ﬁnancial guarantees or loan comm
itments and that are not classif
ied as ﬁnancial l
iab
il
it
ies
held at fair value through proﬁt or loss are classif
ied as ﬁnancial l
iab
il
it
ies held at amort
ised cost.
Preference shares which carry a mandatory coupon that represents a market rate of interest at the issue date, or which
are redeemable on a specif
ic date or at the opt
ion of the shareholder are classif
ied as ﬁnancial l
iab
il
it
ies and are presented
in other borrowed funds. The div
idends on these preference shares are recogn
ised in the income statement as interest
expense on an amortised cost basis using the effective interest method.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
152
Directors’ Report and Financ
ial Statements 2024
Financ
ial guarantee contracts and loan comm
itments
The Group issues ﬁnanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts
and any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a ﬁnanc
ial
liab
il
ity, and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in
accordance with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion.
Loan commitments may be designated at fair value through proﬁt or loss where that is the business model under which
such contracts are held.
Fair value of ﬁnanc
ial assets and l
iab
il
it
ies
The fair value of ﬁnanc
ial
instruments is generally measured on the basis of the ind
iv
idual ﬁnanc
ial
instrument. However,
when a group of ﬁnancial assets and ﬁnancial l
iab
il
it
ies
is managed on the basis of its net exposure to either market risk
or credit risk, the fair value of the group of ﬁnanc
ial
instruments is measured on a net basis.
The fair values of quoted ﬁnanc
ial assets and l
iab
il
it
ies
in active markets are based on current prices. A market is regarded as
active if transactions for the asset or liab
il
ity take place with sufﬁc
ient frequency and volume to prov
ide pric
ing
informat
ion
on an ongoing basis. If the market for a ﬁnanc
ial
instrument, and for unlisted securit
ies,
is not active, the Group establishes fair
value by using valuation techniques.
Init
ial recogn
it
ion
Regular way purchases and sales of ﬁnancial assets held at fa
ir value through proﬁt or loss, and held at fair value through
other comprehensive income are in
it
ially recognised on the trade date (the date on which the Group commits to purchase or
sell the asset). Loans and advances and other ﬁnancial assets held at amort
ised cost are recognised on the settlement date
(the date on which cash is advanced to the borrowers).
All ﬁnancial
instruments are in
it
ially recognised at fair value, which is normally the transaction price, plus directly attributable
transaction costs for ﬁnanc
ial assets and l
iab
il
it
ies wh
ich are not subsequently measured at fair value through proﬁt or loss.
In certain circumstances, the in
it
ial fair value may be based on a valuation technique which may lead to the recognit
ion of
proﬁts or losses at the time of in
it
ial recognit
ion. However, these proﬁts or losses can only be recogn
ised when the valuation
technique used is based solely on observable market data. In those cases where the in
it
ially recognised fair value is based on
a valuation model that uses unobservable inputs, the difference between the transaction price and the valuation model is
not recognised immed
iately
in the income statement, it will be recognised in proﬁt or loss following the passage of time,
or as the inputs become observable, or the transaction matures or is terminated.
Subsequent measurement
Financ
ial assets and ﬁnancial l
iab
il
it
ies held at amort
ised cost
Financ
ial assets and ﬁnancial l
iab
il
it
ies held at amort
ised cost are subsequently carried at amortised cost using the
effective interest method (see ‘Interest income and expense’). Foreign exchange gains and losses are recognised in the
income statement.
Where a ﬁnancial
instrument carried at amortised cost is the hedged item in a qualify
ing fa
ir value hedge relationsh
ip,
its carrying value is adjusted by the fair value gain or loss attributable to the hedged risk.
Financ
ial assets held at FVOCI
Debt instruments held at FVOCI are subsequently carried at fair value, with all unrealised gains and losses aris
ing from
changes in fair value recognised in other comprehensive income and accumulated in a separate component of equity.
Foreign exchange gains and losses on the amortised cost are recognised in income. Changes in expected credit losses are
recognised in the proﬁt or loss and are accumulated in equity. On derecognit
ion, the cumulat
ive fair value gains or losses,
net of the cumulative expected credit loss reserve, are transferred to the proﬁt or loss.
Equity investments designated at FVOCI are subsequently carried at fair value with all unrealised gains and losses aris
ing
from changes in fair value (includ
ing any related fore
ign exchange gains or losses) recognised in other comprehensive income
and accumulated in a separate component of equity. On derecognit
ion, the cumulat
ive reserve is transferred to retained
earnings and is not recycled to proﬁt or loss.
Financ
ial assets and l
iab
il
it
ies held at fa
ir value through proﬁt or loss
Gains and losses aris
ing from changes
in fair value, includ
ing contractual
interest income or expense, recorded in the net
trading income line in the proﬁt or loss.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
153
Directors’ Report and Financ
ial Statements 2024
Derecognit
ion of ﬁnancial
instruments
Financ
ial assets wh
ich are subject to commercial reﬁnanc
ing where the loan
is priced to the market with no payment related
concessions regardless of form of legal documentation or nature of lending will be derecognised. Where the Group’s rights to
the cash ﬂows under the orig
inal contract have exp
ired, the old loan is derecognised and the new loan is recognised at fair
value. For all other modif
icat
ions for example forborne loans or restructuring, whether or not a change in the cash ﬂows is
‘substantially different’ is judgemental and will be considered on a case-by-case basis, taking into account all the relevant
facts and circumstances.
On derecognit
ion of a ﬁnancial asset, the d
ifference between the carrying amount of the asset (or the carrying amount
allocated to the portion of the asset derecognised) and the sum of the considerat
ion rece
ived (includ
ing any new asset
obtained less any new liab
il
ity assumed) and any cumulative gain or loss that had been recognised in other comprehensive
income is recognised in proﬁt or loss except for equity instruments elected FVOCI (see above) and cumulative fair value
adjustments attributable to the credit risk of a liab
il
ity, that are held in other comprehensive income.
Financ
ial l
iab
il
it
ies are derecogn
ised when they are extingu
ished. A ﬁnancial l
iab
il
ity is extingu
ished when the obl
igat
ion
is
discharged, cancelled or expires and this is evaluated both qualitat
ively and quant
itat
ively. However, where a ﬁnancial
liab
il
ity has been modif
ied,
it is derecognised if the difference between the modif
ied cash ﬂows and the or
ig
inal cash ﬂows
is more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitat
ive assessment to determ
ine whether
the terms of the two instruments are substantially different.
If the Group purchases its own debt, it is derecognised and the difference between the carrying amount of the liab
il
ity and
the considerat
ion pa
id is included in 'Other income' except for the cumulative fair value adjustments attributable to the
credit risk of a liab
il
ity that are held in Other comprehensive income, which are never recycled to the proﬁt or loss.
Modif
ied ﬁnancial
instruments
Financ
ial assets and ﬁnancial l
iab
il
it
ies whose or
ig
inal contractual terms have been mod
if
ied,
includ
ing those loans subject
to forbearance strategies, are considered to be modif
ied
instruments. Modif
icat
ions may include changes to the tenor,
cash ﬂows and or interest rates among other factors.
Where derecognit
ion of ﬁnancial assets
is appropriate (see Derecognit
ion), the newly recogn
ised residual loans are assessed
to determine whether the assets should be classif
ied as purchased or or
ig
inated cred
it-impa
ired assets (POCI).
Where derecognit
ion
is not appropriate, the gross carrying amount of the applicable instruments is recalculated as the
present value of the renegotiated or modif
ied contractual cash ﬂows d
iscounted at the orig
inal effect
ive interest rate
(or credit adjusted effective interest rate for POCI ﬁnanc
ial assets). The d
ifference between the recalculated values and
the pre-modif
ied gross carry
ing values of the instruments are recorded as a modif
icat
ion gain or loss in the proﬁt or loss.
Gains and losses aris
ing from mod
if
icat
ions for credit reasons are recorded as part of ‘Credit Impairment’ (see Credit
Impairment policy). Modif
icat
ion gains and losses aris
ing from non-cred
it reasons are recognised either as part of
‘Credit Impairment’ or with
in
income depending on whether there has been a change in the credit risk on the ﬁnanc
ial
asset subsequent to the modif
icat
ion. Modif
icat
ion gains and losses aris
ing on ﬁnancial l
iab
il
it
ies are recogn
ised with
in
income. The movements in the applicable expected credit loss loan posit
ions are d
isclosed in further detail in Risk Review.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
154
Directors’ Report and Financ
ial Statements 2024
The Group’s classif
icat
ion of its ﬁnanc
ial assets and l
iab
il
it
ies
is summarised in the following tables.
Group

|  | Assets at fair value |  |
|  |  |  | Non-trading |  |  |  |  |
|  |  |  | mandatorily | Designated | Fair value | Total | Assets |
|  |  | Derivat ives | at fair value | at fair value | through other | ﬁnancial | held at |
|  |  | held for | through | through | comprehensive | assets at | amortised |
|  | Trading | hedging | proﬁt or loss | proﬁt or loss | income | fair value | cost | Total
Assets | Notes | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and balances at |  |  |  |  |  |  |  |  |
central banks 1 |  | – | – | – | – | – | – | 56,665 | 56,665
Financ ial assets held |  |  |  |  |  |  |  |  |
at fair value through |  |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |  |
Loans and advances |  |  |  |  |  |  |  |  |
to banks 2 |  | 2,033 | – | – | – | – | 2,033 | – | 2,033
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 |  | 3,833 | – | 156 | – | – | 3,989 | – | 3,989
Reverse repurchase |  |  |  |  |  |  |  |  |
agreements and |  |  |  |  |  |  |  |  |
other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 15 | 260 | – | 65,343 | – | – | 65,603 | – | 65,603
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative tier |  |  |  |  |  |  |  |  |
one and other |  |  |  |  |  |  |  |  |
elig ible b ills |  | 30,217 | – | 416 | – | – | 30,633 | – | 30,633
Equity shares |  | 1,240 | – | 126 | – | – | 1,366 | – | 1,366
|  | 37,583 | – | 66,041 | – | – | 103,624 | – | 103,624
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 13 | 81,252 | 1,465 | – | – | – | 82,717 | – | 82,717
Loans and advances |  |  |  |  |  |  |  |  |
to banks 2,3 | 14 | – | – | – | – | – | – | 22,941 | 22,941
of which – reverse |  |  |  |  |  |  |  |  |
repurchase |  |  |  |  |  |  |  |  |
agreements and |  |  |  |  |  |  |  |  |
other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 15 | – | – | – | – | – | – | 2,889 | 2,889
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 | 14 | – | – | – | – | – | – | 158,242 | 158,242
of which – reverse |  |  |  |  |  |  |  |  |
repurchase |  |  |  |  |  |  |  |  |
agreements and |  |  |  |  |  |  |  |  |
other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 15 | – | – | – | – | – | – | 9,121 | 9,121
Investment securit ies |  |  |  |  |  |  |  |  |
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative |  |  |  |  |  |  |  |  |
tier one and other |  |  |  |  |  |  |  |  |
elig ible b ills |  | – | – | – | – | 58,813 | 58,813 | 37,366 | 96,179
Equity shares |  | – | – | – | – | 263 | 263 | – | 263
|  | – | – | – | – | 59,076 | 59,076 | 37,366 | 96,442
Other assets | 19 |  |  |  |  | – | – | 21,535 | 21,535
Assets held for sale | 20 | – | – | – | – | – | – | 866 | 866
Total at |  |  |  |  |  |  |  |  |
31 December 2024 |  | 118,835 | 1,465 | 66,041 | – | 59,076 | 245,417 | 297,615 | 543,032

1
Comprises cash held at central banks in restricted accounts of $2,859 mill
ion, or on demand, or placements wh
ich are contractually due to mature over-night only. Other
placements with central banks are reported as part of Loans and advances to customers
2
Further analysed in Risk review and Capital review (pages 44 to 110)
3
Loans and advances to banks include amounts due on demand from banks other than central banks
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
155
Directors’ Report and Financ
ial Statements 2024

|  | Assets at fair value |  |
|  |  |  | Non-trading |  |  |  |  |
|  |  |  | mandatorily | Designated | Fair value | Total | Assets |
|  |  | Derivat ives | at fair value | at fair value | through other | ﬁnancial | held at |
|  |  | held for | through | through | comprehensive | assets at | amortised |
|  | Trading | hedging | proﬁt or loss | proﬁt or loss | income | fair value | cost | Total
Assets | Notes | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and balances at |  |  |  |  |  |  |  |  |
central banks 1 |  | – | – | – | – | – | – | 64,198 | 64,198
Financ ial assets held |  |  |  |  |  |  |  |  |
at fair value through |  |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |  |
Loans and advances |  |  |  |  |  |  |  |  |
to banks 2 |  | 2,265 | – | – | – | – | 2,265 | – | 2,265
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 |  | 3,001 | – | 187 | – | – | 3,188 | – | 3,188
Reverse repurchase |  |  |  |  |  |  |  |  |
agreements and |  |  |  |  |  |  |  |  |
other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 15 | 185 | – | 67,964 | – | – | 68,149 | – | 68,149
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative |  |  |  |  |  |  |  |  |
tier one and other |  |  |  |  |  |  |  |  |
elig ible b ills |  | 21,452 | – | 604 | – | – | 22,056 | – | 22,056
Equity shares |  | 1,322 | – | 120 | – | – | 1,442 | – | 1,442
|  | 28,225 | – | 68,875 | – | – | 97,100 | – | 97,100
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 13 | 50,883 | 1,671 | – | – | – | 52,554 | – | 52,554
Loans and advances |  |  |  |  |  |  |  |  |
to banks 2,3 | 14 | – | – | – | – | – | – | 22,803 | 22,803
of which – reverse |  |  |  |  |  |  |  |  |
repurchase |  |  |  |  |  |  |  |  |
agreements |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 15 | – | – | – | – | – | – | 1,653 | 1,653
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 | 14 | – | – | – | – | – | – | 156,143 | 156,143
of which – reverse |  |  |  |  |  |  |  |  |
repurchase |  |  |  |  |  |  |  |  |
agreements |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 15 | – | – | – | – | – | – | 13,827 | 13,827
Investment securit ies |  |  |  |  |  |  |  |  |
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative |  |  |  |  |  |  |  |  |
tier one and other |  |  |  |  |  |  |  |  |
elig ible b ills |  | – | – | – | – | 62,120 | 62,120 | 39,920 | 102,040
Equity shares |  | – | – | – | – | 434 | 434 | – | 434
|  | – | – | – | – | 62,554 | 62,554 | 39,920 | 102,474
Other assets | 19 |  |  |  |  | – | – | 20,714 | 20,714
Assets held for sale | 20 | – | – | – | – | – | – | 693 | 693
Total at |  |  |  |  |  |  |  |  |
31 December 2023 |  | 79,108 | 1,671 | 68,875 | – | 62,554 | 212,208 | 304,471 | 516,679

1
Comprises cash held at central banks in restricted accounts of $3,050 mill
ion, or on demand, or placements wh
ich are contractually due to mature over-night only.
Other placements with central banks are reported as part of Loans and advances to customers
2
Further analysed in Risk review and Capital review (pages 44 to 110)
3
Loans and advances to banks include amounts due on demand from banks other than central banks
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
156
Directors’ Report and Financ
ial Statements 2024
Company

|  | Assets at fair value |  |
|  |  |  | Non-trading |  |  |  |  |
|  |  |  | mandatorily | Designated | Fair value | Total | Assets |
|  |  | Derivat ives | at fair value | at fair value | through other | ﬁnancial | held at |
|  |  | held for | through | through | comprehensive | assets at | amortised |
|  | Trading | hedging | proﬁt or loss | proﬁt or loss | income | fair value | cost | Total
Assets | Notes | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and balances at |  |  |  |  |  |  |  |  |
central banks 1 |  | – | – | – | – | – | – | 45,233 | 45,233
Financ ial assets held |  |  |  |  |  |  |  |  |
at fair value through |  |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |  |
Loans and advances |  |  |  |  |  |  |  |  |
to banks² |  | 1,880 | – | – | – | – | 1,880 | – | 1,880
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 |  | 3,247 | – | 29 | – | – | 3,276 | – | 3,276
Reverse repurchase |  |  |  |  |  |  |  |  |
agreements |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 16 | 260 | – | 61,881 | – | – | 62,141 | – | 62,141
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative |  |  |  |  |  |  |  |  |
tier one and other |  |  |  |  |  |  |  |  |
elig ible b ills |  | 17,187 | – | 2,638 | – | – | 19,825 | – | 19,825
Equity shares |  | 1,223 | – | 4 | – | – | 1,227 | – | 1,227
Other assets |  | – | – | – | – | – | – | – | –
|  | 23,797 | – | 64,552 | – | – | 88,349 | – | 88,349
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 14 | 81,534 | 1,310 | – | – | – | 82,844 | – | 82,844
Loans and advances |  |  |  |  |  |  |  |  |
to banks 2,3 | 15 | – | – | – | – | – | – | 11,755 | 11,755
of which – reverse |  |  |  |  |  |  |  |  |
repurchase |  |  |  |  |  |  |  |  |
agreements |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 16 | – | – | – | – | – | – | 1,423 | 1,423
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 | 15 | – | – | – | – | – | – | 77,597 | 77,597
of which – reverse |  |  |  |  |  |  |  |  |
repurchase |  |  |  |  |  |  |  |  |
agreements |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 16 | – | – | – | – | – | – | 9,041 | 9,041
Investment securit ies |  |  |  |  |  |  |  |  |
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative |  |  |  |  |  |  |  |  |
tier one and other |  |  |  |  |  |  |  |  |
elig ible b ills |  | – | – | – | – | 46,650 | 46,650 | 35,205 | 81,855
Equity shares |  | – | – | – | – | 246 | 246 | – | 246
|  | – | – | – | – | 46,896 | 46,896 | 35,205 | 82,101
Other assets | 20 |  |  |  |  | – | – | 17,587 | 17,587
Assets held for sale | 21 | – | – | – | – | – | – | 474 | 474
Total at |  |  |  |  |  |  |  |  |
31 December 2024 |  | 105,331 | 1,310 | 64,552 | – | 46,896 | 218,089 | 187,851 | 405,940

1
Comprises cash held at central banks in restricted accounts of $1,160 mill
ion, or on demand, or placements wh
ich are contractually due to mature over-night only. Other
placements with central banks are reported as part of Loans and advances to customers
2
Further analysed in Risk review and Capital review (pages 44 to 110)
3
Loans and advances to banks include amounts due on demand from banks other than central banks
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
157
Directors’ Report and Financ
ial Statements 2024

|  | Assets at fair value |  |
|  |  |  | Non-trading |  |  |  |  |
|  |  |  | mandatorily | Designated | Fair value | Total | Assets |
|  |  | Derivat ives | at fair value | at fair value | through other | ﬁnancial | held at |
|  |  | held for | through | through | comprehensive | assets at | amortised |
|  | Trading | hedging | proﬁt or loss | proﬁt or loss | income | fair value | cost | Total
Assets | Notes | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cash and balances at |  |  |  |  |  |  |  |  |
central banks 1 |  | – | – | – | – | – | – | 52,758 | 52,758
Financ ial assets held |  |  |  |  |  |  |  |  |
at fair value through |  |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |  |
Loans and advances |  |  |  |  |  |  |  |  |
to banks 2 |  | 2,244 | – | – | – | – | 2,244 | – | 2,244
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 |  | 2,566 | – | 56 | – | – | 2,622 | – | 2,622
Reverse repurchase |  |  |  |  |  |  |  |  |
agreements and other |  |  |  |  |  |  |  |  |
sim ilar secured lend ing | 16 | 185 | – | 64,619 | – | – | 64,804 | – | 64,804
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative tier one |  |  |  |  |  |  |  |  |
and other elig ible b ills |  | 13,713 | – | 1,714 | – | – | 15,427 | – | 15,427
Equity shares |  | 1,312 | – | 3 | – | – | 1,315 | – | 1,315
Other assets |  | – | – | – | – | – | – | – | –
|  | 20,020 | – | 66,392 | – | – | 86,412 | – | 86,412
Derivat ive ﬁnancial |  |  |  |  |  |  |  |  |
instruments | 14 | 51,627 | 1,594 | – | – | – | 53,221 | – | 53,221
Loans and advances |  |  |  |  |  |  |  |  |
to banks 2,3 | 15 | – | – | – | – | – | – | 10,135 | 10,135
of which – reverse |  |  |  |  |  |  |  |  |
repurchase agreements |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 16 | – | – | – | – | – | – | 554 | 554
Loans and advances |  |  |  |  |  |  |  |  |
to customers 2 | 15 | – | – | – | – | – | – | 75,883 | 75,883
of which – reverse |  |  |  |  |  |  |  |  |
repurchase agreements |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |
secured lending | 16 | – | – | – | – | – | – | 12,212 | 12,212
Investment securit ies |  |  |  |  |  |  |  |  |
Debt securit ies, |  |  |  |  |  |  |  |  |
alternative tier one |  |  |  |  |  |  |  |  |
and other elig ible b ills |  | – | – | – | – | 54,300 | 54,300 | 38,062 | 92,362
Equity shares |  | – | – | – | – | 409 | 409 | – | 409
|  | – | – | – | – | 54,709 | 54,709 | 38,062 | 92,771
Other assets | 20 |  |  |  |  | – | – | 16,990 | 16,990
Assets held for sale | 21 | – | – | – | – | – | – | 52 | 52
Total at |  |  |  |  |  |  |  |  |
31 December 2023 |  | 71,647 | 1,594 | 66,392 | – | 54,709 | 194,342 | 193,880 | 388,222

1
Comprises cash held at central banks in restricted accounts of $1,311 mill
ion, or on demand, or placements wh
ich are contractually due to mature over-night only. Other
placements with central banks are reported as part of Loans and advances to customers
2
Further analysed in Risk review and Capital review (pages 44 to 110)
3
Loans and advances to banks include amounts due on demand from banks other than central banks
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
158
Directors’ Report and Financ
ial Statements 2024
Group

|  | Liab il it ies at fa ir value |  |
|  |  |  | Designated at |  |  |
|  |  | Derivat ives | fair value | Total ﬁnancial |  |
|  |  | held for | through proﬁt | liab il it ies at | Amortised |
|  | Trading | hedging | or loss | fair value | cost | Total
Liab il it ies | Notes | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Financ ial l iab il it ies held at fa ir value |  |  |  |  |  |  |
through proﬁt or loss |  |  |  |  |  |  |
Deposits by banks |  | – | – | 1,471 | 1,471 | – | 1,471
Customer accounts |  | – | – | 9,222 | 9,222 | – | 9,222
Repurchase agreements and |  |  |  |  |  |  |
other sim ilar secured borrow ing | 15 | 925 | – | 32,285 | 33,210 | – | 33,210
Debt securit ies in issue | 21 | – | – | 12,176 | 12,176 | – | 12,176
Short posit ions |  | 6,850 | – | – | 6,850 | – | 6,850
|  | 7,775 | – | 55,154 | 62,929 | – | 62,929
Derivat ive ﬁnancial instruments | 13 | 81,764 | 813 | – | 82,577 | – | 82,577
Deposits by banks |  | – | – | – | – | 22,409 | 22,409
Customer accounts |  | – | – | – | – | 239,204 | 239,204
Repurchase agreements and other |  |  |  |  |  |  |
sim ilar secured borrow ing | 15 | – | – | – | – | 9,921 | 9,921
Debt securit ies in issue | 21 | – | – | – | – | 39,864 | 39,864
Other liab il it ies | 22 | – | – | – | – | 27,350 | 27,350
Subordinated liab il it ies and other |  |  |  |  |  |  |
borrowed funds | 26 | – | – | – | – | 10,359 | 10,359
Liab il it ies included in disposal |  |  |  |  |  |  |
groups held for sale | 20 | – | – | – | – | 360 | 360
Total at 31 December 2024 |  | 89,539 | 813 | 55,154 | 145,506 | 349,467 | 494,973
Financ ial l iab il it ies held at fa ir value |  |  |  |  |  |  |
through proﬁt or loss |  |  |  |  |  |  |
Deposits by banks |  | – | – | 1,321 | 1,321 | – | 1,321
Customer accounts |  | 39 | – | 9,127 | 9,166 | – | 9,166
Repurchase agreements and other |  |  |  |  |  |  |
sim ilar secured borrow ing | 15 | 1,438 | – | 37,994 | 39,432 | – | 39,432
Debt securit ies in issue | 21 | – | – | 9,850 | 9,850 | – | 9,850
Short posit ions |  | 6,050 | – | – | 6,050 | – | 6,050
|  | 7,527 | – | 58,292 | 65,819 | – | 65,819
Derivat ive ﬁnancial instruments | 13 | 53,209 | 1,964 | – | 55,173 | – | 55,173
Deposits by banks |  | – | – | – | – | 23,616 | 23,616
Customer accounts |  | – | – | – | – | 237,902 | 237,902
Repurchase agreements and other |  |  |  |  |  |  |
sim ilar secured borrow ing | 15 | – | – | – | – | 12,033 | 12,033
Debt securit ies in issue | 21 | – | – | – | – | 36,481 | 36,481
Other liab il it ies | 22 | – | – | – | – | 24,109 | 24,109
Subordinated liab il it ies and other |  |  |  |  |  |  |
borrowed funds | 26 | – | – | – | – | 11,454 | 11,454
Liab il it ies included in disposal groups |  |  |  |  |  |  |
held for sale | 20 | – | – | – | – | 726 | 726
Total at 31 December 2023 |  | 60,736 | 1,964 | 58,292 | 120,992 | 346,321 | 467,313

12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
159
Directors’ Report and Financ
ial Statements 2024
Company

|  | Liab il it ies at fa ir value |  |
|  |  |  | Designated at |  |  |
|  |  | Derivat ives | fair value | Total ﬁnancial |  |
|  |  | held for | through proﬁt | liab il it ies at | Amortised |
|  | Trading | hedging | or loss | fair value | cost | Total
Liab il it ies | Notes | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Financ ial l iab il it ies held at fa ir value |  |  |  |  |  |  |
through proﬁt or loss |  |  |  |  |  |  |
Deposits by banks |  | – | – | 1,463 | 1,463 | – | 1,463
Customer accounts |  | – | – | 8,832 | 8,832 | – | 8,832
Repurchase agreements and other |  |  |  |  |  |  |
sim ilar secured borrow ing | 16 | 724 | – | 32,156 | 32,880 | – | 32,880
Debt securit ies in issue | 22 | – | – | 12,062 | 12,062 | – | 12,062
Short posit ions |  | 6,446 | – | – | 6,446 | – | 6,446
|  | 7,170 | – | 54,513 | 61,683 | – | 61,683
Derivat ive ﬁnancial instruments | 14 | 82,064 | 681 | – | 82,745 | – | 82,745
Deposits by banks |  | – | – | – | – | 17,824 | 17,824
Customer accounts |  | – | – | – | – | 119,502 | 119,502
Repurchase agreements and other |  |  |  |  |  |  |
sim ilar secured borrow ing | 16 | – | – | – | – | 9,845 | 9,845
Debt securit ies in issue | 22 | – | – | – | – | 36,081 | 36,081
Other liab il it ies | 23 | – | – | – | – | 21,124 | 21,124
Subordinated liab il it ies and other |  |  |  |  |  |  |
borrowed funds | 27 | – | – | – | – | 9,801 | 9,801
Total at 31 December 2024 |  | 89,234 | 681 | 54,513 | 144,428 | 214,177 | 358,605
Financ ial l iab il it ies held at fa ir value |  |  |  |  |  |  |
through proﬁt or loss |  |  |  |  |  |  |
Deposits by banks |  | – | – | 1,321 | 1,321 | – | 1,321
Customer accounts |  | – | – | 8,852 | 8,852 | – | 8,852
Repurchase agreements and other |  |  |  |  |  |  |
sim ilar secured borrow ing | 16 | 1,438 | – | 37,736 | 39,174 | – | 39,174
Debt securit ies in issue | 22 | – | – | 9,554 | 9,554 | – | 9,554
Short posit ions |  | 5,566 | – | – | 5,566 | – | 5,566
|  | 7,004 | – | 57,463 | 64,467 | – | 64,467
Derivat ive ﬁnancial instruments | 14 | 53,614 | 1,917 | – | 55,531 | – | 55,531
Deposits by banks |  | – | – | – | – | 18,280 | 18,280
Customer accounts |  | – | – | – | – | 121,648 | 121,648
Repurchase agreements and other |  |  |  |  |  |  |
sim ilar secured borrow ing | 16 | – | – | – | – | 11,977 | 11,977
Debt securit ies in issue | 22 | – | – | – | – | 34,740 | 34,740
Other liab il it ies | 23 | – | – | – | – | 18,879 | 18,879
Subordinated liab il it ies and other |  |  |  |  |  |  |
borrowed funds | 27 | – | – | – | – | 10,896 | 10,896
Total at 31 December 2023 |  | 60,618 | 1,917 | 57,463 | 119,998 | 216,420 | 336,418

12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
160
Directors’ Report and Financ
ial Statements 2024
Offsetting of ﬁnanc
ial
instruments
Financ
ial assets and l
iab
il
it
ies are offset and the net amount reported
in the balance sheet when there is a legally
enforceable right to offset the recognised amounts and there is an intent
ion to settle on a net bas
is, or to realise the asset
and settle the liab
il
ity simultaneously.
In practice, for credit mit
igat
ion, the Group is able to offset assets and liab
il
it
ies wh
ich do not meet the IAS 32 netting criter
ia
set out below. Such arrangements include master netting arrangements for derivat
ives and global master repurchase
agreements for repurchase and reverse repurchase transactions. These agreements generally allow that all outstanding
transactions with a particular counterparty can be offset but only in the event of default or other predetermined events.
In addit
ion, the Group also rece
ives and pledges readily realisable collateral for derivat
ive transact
ions to cover net exposure
in the event of a default. Under repurchase and reverse repurchase agreements the Group pledges (legally sells) and obtains
(legally purchases) respectively, highly liqu
id assets wh
ich can be sold in the event of a default.
The following tables set out the impact of netting on the balance sheet. This comprises derivat
ive transact
ions settled
through an enforceable netting agreement where we have the intent and abil
ity to settle net and wh
ich are offset on
the balance sheet.
Group

| 2024
|  |  | Net amounts of | Related amount not offset in |
|  |  | ﬁnancial | the balance sheet |
| Gross amounts |  | instruments |  |  |
| of recognised | Impact of | presented in |  |  |
| ﬁnancial | offset in the | the balance | Financ ial | Financ ial |
| instruments | balance sheet | sheet | instruments | collateral | Net amount
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at 31 December 2024 |  |  |  |  |  |
Derivat ive ﬁnancial instruments | 98,176 | (15,459) | 82,717 | (65,027) | (12,984) | 4,706
Reverse repurchase agreements and other |  |  |  |  |  |
sim ilar secured lend ing | 115,927 | (38,314) | 77,613 | – | (77,613) | –
Total Assets | 214,103 | (53,773) | 160,330 | (65,027) | (90,597) | 4,706
Derivat ive ﬁnancial instruments | 98,036 | (15,459) | 82,577 | (65,027) | (9,181) | 8,369
Repurchase agreements and other |  |  |  |  |  |
sim ilar secured borrow ing | 81,445 | (38,314) | 43,131 | – | (43,131) | –
Total Liab il it ies | 179,481 | (53,773) | 125,708 | (65,027) | (52,312) | 8,369
|  |  | 2023 |  |  |
As at 31 December 2023 |  |  |  |  |  |
Derivat ive ﬁnancial instruments | 100,321 | (47,767) | 52,554 | (43,684) | (7,960) | 910
Reverse repurchase agreements and other |  |  |  |  |  |
sim ilar secured lend ing | 95,461 | (11,832) | 83,629 | – | (83,629) | –
Total Assets | 195,782 | (59,599) | 136,183 | (43,684) | (91,589) | 910
Derivat ive ﬁnancial instruments | 102,940 | (47,767) | 55,173 | (43,684) | (8,378) | 3,111
Repurchase agreements and other sim ilar |  |  |  |  |  |
secured borrowing | 63,297 | (11,832) | 51,465 | – | (51,465) | –
Total Liab il it ies | 166,237 | (59,599) | 106,638 | (43,684) | (59,843) | 3,111

12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
161
Directors’ Report and Financ
ial Statements 2024
Company

| 2024
|  |  | Net amounts |  |  |
| Gross |  | of ﬁnancial |  |  |
| amounts of |  | instruments | Related amount not offset in |
| recognised | Impact of | presented in | the balance sheet |
| ﬁnancial | offset in the | the balance | Financ ial | Financ ial |
| instruments | balance sheet | sheet | instruments | collateral | Net amount
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at 31 December 2024 |  |  |  |  |  |
Derivat ive ﬁnancial instruments | 98,303 | (15,459) | 82,844 | (67,030) | (11,788) | 4,026
Reverse repurchase agreements and other |  |  |  |  |  |
sim ilar secured lend ing | 110,919 | (38,314) | 72,605 | – | (72,605) | –
Total Assets | 209,222 | (53,773) | 155,449 | (67,030) | (84,393) | 4,026
Derivat ive ﬁnancial instruments | 98,204 | (15,459) | 82,745 | (67,030) | (8,196) | 7,519
Repurchase agreements and other sim ilar |  |  |  |  |  |
secured borrowing | 81,039 | (38,314) | 42,725 | – | (42,725) | –
Total Liab il it ies | 179,243 | (53,773) | 125,470 | (67,030) | (50,921) | 7,519
| 2023
As at 31 December 2023 |  |  |  |  |  |
Derivat ive ﬁnancial instruments | 100,988 | (47,767) | 53,221 | (45,556) | (7,289) | 376
Reverse repurchase agreements and other |  |  |  |  |  |
sim ilar secured lend ing | 89,402 | (11,832) | 77,570 | – | (77,570) | –
Total Assets | 190,390 | (59,599) | 130,791 | (45,556) | (84,859) | 376
Liab il it ies |  |  |  |  |  |
Derivat ive ﬁnancial instruments | 103,298 | (47,767) | 55,531 | (45,556) | (7,505) | 2,470
Repurchase agreements and other sim ilar |  |  |  |  |  |
secured borrowing | 62,983 | (11,832) | 51,151 | – | (51,151) | –
Total Liab il it ies | 166,281 | (59,599) | 106,682 | (45,556) | (58,656) | 2,470

Related amounts not offset in the balance sheet comprises:
•
Financ
ial
instruments not offset in the balance sheet but covered by an enforceable netting arrangement. This comprises
master netting arrangements held against derivat
ive ﬁnancial
instruments and excludes the effect of over-collateralisat
ion
•
Financ
ial
instruments where a legal opin
ion ev
idenc
ing enforceab
il
ity the r
ight of offset may not have sought, or may have
been unable to obtain such opin
ion
•
Financ
ial collateral compr
ises cash collateral pledged and received for derivat
ive ﬁnancial
instruments and collateral
bought and sold for reverse repurchase and repurchase agreements respectively and excludes the effect of over-
collateralisat
ion
Financ
ial l
iab
il
it
ies des
ignated at fair value through proﬁt or loss

| 2024 | 2023
| $mill ion | $mill ion
Carrying Balance aggregate fair value | 55,154 | 58,292
Amount Contractually obliged to repay at maturity | 55,474 | 59,576
Difference between aggregate fair value and contractually obliged to repay at maturity | (320) | (1,284)
Cumulative change in Fair Value accredited to Credit Risk Difference | (182) | 87

The net fair value loss on ﬁnanc
ial l
iab
il
it
ies des
ignated at fair value through proﬁt or loss was $3,162 mill
ion for the year
(31 December 2023: net loss of $2,445 mill
ion).
Further details of the Group’s own credit adjustment (OCA) valuation technique is described later in this note.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
162
Directors’ Report and Financ
ial Statements 2024
Valuation of ﬁnanc
ial
instruments
The Valuation Methodology function is responsible for independent price verif
icat
ion, oversight of fair value and appropriate
value adjustments and escalation of valuation issues. Independent price verif
icat
ion is the process of determin
ing that the
valuations incorporated into the ﬁnanc
ial statements are val
idated independent of the business area responsible for the
product. The Valuation Methodology function has oversight of the fair value adjustments to ensure the ﬁnanc
ial
instruments
are priced to exit. These are key controls in ensuring the material accuracy of the valuations incorporated in the ﬁnanc
ial
statements. The market data used for price verif
icat
ion (PV) may include data sourced from recent trade data involv
ing
external counterparties or third parties such as Bloomberg, Reuters, brokers and consensus pric
ing prov
iders. 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 detail
ing the su
itab
il
ity of the market data used for price
testing. Price verif
icat
ion 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, reliab
il
ity, availab
il
ity
of multiple data sources and methodology employed by the pric
ing prov
ider are taken into considerat
ion.
The Valuation and Benchmarks Committee (VBC) is the valuation governance forum consist
ing of representat
ives 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 Princ
ipal F
inance, the Investment Committee meeting is held on a quarterly
basis to review investments and valuations.
Sign
iﬁcant account
ing estimates and judgements
The Group evaluates the sign
iﬁcance of ﬁnancial
instruments and material accuracy of the valuations incorporated in the
ﬁnancial statements as they
involve a high degree of judgement and estimat
ion uncerta
inty in determin
ing the carry
ing
values of ﬁnancial assets and l
iab
il
it
ies at the balance sheet date.
•
Fair value of ﬁnanc
ial
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 observabil
ity
of sign
iﬁcant valuat
ion inputs can materially affect the fair values of ﬁnanc
ial
instruments
•
When establish
ing the ex
it price of a ﬁnanc
ial
instrument using a valuation technique, the Group estimates valuation
adjustments in determin
ing the fa
ir value
•
In determin
ing the valuat
ion of ﬁnanc
ial
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 sign
iﬁcant valuat
ion judgements in respect
of Level 3 instruments (page 171)
•
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 sign
iﬁcant degree of non-market-based unobservable
inputs
Valuation techniques
Refer to the fair value hierarchy explanation – Level 1, 2 and 3 (page 165)
•
Financ
ial
instruments held at fair value
–
Debt securit
ies
– asset-backed securit
ies: Asset-backed secur
it
ies are valued based on external pr
ices obtained from
consensus pric
ing prov
iders, broker quotes, recent trades, arrangers’ quotes, etc. Where an observable price is available
for a given security, it is classif
ied as Level 2. In
instances where third-party prices are not available or reliable, the security
is classif
ied as Level 3. The fa
ir value of Level 3 securit
ies
is estimated using market standard cash ﬂow models with input
parameter assumptions which include prepayment speeds, default rates, discount margins derived from comparable
securit
ies w
ith sim
ilar v
intage, collateral type, and credit ratings.
–
Debt securit
ies
in issue:
These debt securit
ies relate to structured notes
issued by the Group. Where independent market
data is available through pric
ing vendors and broker sources these pos
it
ions are class
if
ied as Level 2. Where such l
iqu
id
external prices are not available, valuations of these debt securit
ies are
impl
ied us
ing input parameters such as bond
spreads and credit spreads, and are classif
ied as Level 3. These
input parameters are determined with reference to the
same issuer (if available) or proxies from comparable issuers or assets.
–
Derivat
ives:
Derivat
ive products are class
if
ied as Level 2
if the valuation of the product is based upon input parameters
which are observable from independent and reliable market data sources. Derivat
ive products are class
if
ied as Level 3
if there are sign
iﬁcant valuat
ion 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 ind
ices and
interest rate products with quanto payouts.
In most cases these unobservable correlation parameters cannot be impl
ied from the market, and methods such as
histor
ical analys
is and comparison with histor
ical levels or other benchmark data must be employed.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
163
Directors’ Report and Financ
ial Statements 2024
–
Equity shares - unlisted equity investments:
The majority of unl
isted equity investments are valued based on market
multiples, includ
ing Pr
ice to Book (P/B), Price-to-Earnings (P/E) or enterprise value to earnings before income tax,
depreciat
ion and amort
isat
ion (EV/EBITDA) rat
ios of comparable listed companies. The primary inputs for the valuation
of these investments are the actual ﬁnanc
ials or forecasted earn
ings of the investee companies and market multiples
obtained from the comparable listed companies. To ensure comparabil
ity between these unquoted
investments and the
comparable listed companies, appropriate adjustments are also applied (for example, liqu
id
ity 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 pric
ing model), wh
ich 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 classif
ied as
Level 3 on the basis that the valuation methods involve judgements ranging from determin
ing comparable compan
ies
to discount rates where the discounted cash ﬂow method is applied.
–
Loans and advances:
These primar
ily
include loans in the FM Bond and Loan Syndicat
ion bus
iness which were not fully
syndicated as of the balance sheet date and other ﬁnanc
ing transact
ions with
in F
inanc
ial Markets, and loans and
advances includ
ing reverse repurchase agreements that do not have SPPI cashﬂows or are managed on a fa
ir value
basis. Where available, 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 sim
ilar cred
it grade,
sector and region, are used. Where observable transaction prices, credit spreads and market standard proxy methods
are available, these loans are classif
ied as Level 2. Where there are no recent transact
ions or comparables, these loans
are classif
ied as Level 3.
–
Other debt securit
ies:
These debt securit
ies
include convertible bonds, corporate bonds, credit and structured notes.
Where quoted prices are available through pric
ing vendors, brokers or observable trad
ing activ
it
ies from liqu
id markets,
these are classif
ied as Level 2 and valued us
ing such quotes. Where there are sign
iﬁcant valuat
ion inputs which are
unobservable in the market, due to ill
iqu
id trading or the complexity of the product, these are classif
ied as Level 3.
The valuations of these debt securit
ies are
impl
ied us
ing 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
•
Financ
ial
instruments held at amortised cost
The following sets out the Group’s basis for establish
ing fa
ir values of amortised cost ﬁnanc
ial
instruments and their
classif
icat
ion between Levels 1, 2 and 3. As certain categories of ﬁnanc
ial
instruments are not actively traded, there is
a sign
iﬁcant 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 securit
ies
in issue, subordinated liab
il
it
ies 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 remain
ing term to matur
ity
–
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 prevail
ing market rates for debts w
ith a sim
ilar Cred
it Risk and
remain
ing matur
ity
–
Investment securit
ies:
For investment securit
ies that do not have d
irectly observable market values, the Group util
ises
a number of valuation techniques to determine fair value. Where available, securit
ies are valued us
ing 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 sim
ilar bond but us
ing spreads for a particular sector and rating). Certain
instruments cannot be proxies as set out above, and in such cases the posit
ions are valued us
ing non-market observable
inputs. This includes those instruments held at amortised cost and predominantly relates to asset-backed securit
ies.
The fair value for such instruments is usually proxies from internal assessments of the underlying cash ﬂows
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
164
Directors’ Report and Financ
ial Statements 2024
–
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 prevail
ing money market rates for debts w
ith a sim
ilar Cred
it Risk and
remain
ing matur
ity. The Group’s loans and advances to customers’ portfolio is well divers
iﬁed by geography and
industry.
Approximately a quarter of the portfolio re-prices with
in one month, and approx
imately half re-prices with
in 12 months.
Loans and advances are presented net of provis
ions for
impa
irment. The fa
ir 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, includ
ing assumpt
ions 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 ind
iv
idual instruments
with
in
its loans and advances portfolio and as a result provid
ing quant
if
icat
ion of the key assumptions used to value such
instruments is impract
ical
–
Other assets
: Other assets comprise primar
ily of cash collateral and trades pend
ing settlement. The carrying amount of
these ﬁnancial
instruments is considered to be a reasonable approximat
ion of fa
ir value as they are either short-term in
nature or re-price to current market rates frequently
Fair value adjustments
When establish
ing the ex
it price of a ﬁnanc
ial
instrument using a valuation technique, the Group considers adjustments to
the modelled price which market partic
ipants would make when pr
ic
ing that
instrument. The main valuation adjustments
(described further below) in determin
ing fa
ir value for ﬁnanc
ial assets and ﬁnancial l
iab
il
it
ies are as follows:

|  | Movement |  |  | Movement |
|  | during the |  |  | during the |
| 01.01.24 | year | 31.12.24 | 01.01.23 | year | 31.12.23
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Bid-offer valuation adjustment | 91 | 2 | 93 | 89 | 2 | 91
Credit valuation adjustment | 98 | (3) | 95 | 135 | (37) | 98
Debit valuation adjustment | (118) | 20 | (98) | (91) | (27) | (118)
Model valuation adjustment | 4 | 1 | 5 | 3 | 1 | 4
Funding valuation adjustment | 36 | (5) | 31 | 44 | (8) | 36
Other fair value adjustments | 20 | (1) | 19 | 19 | 1 | 20
Total | 131 | 14 | 145 | 199 | (68) | 131
Income deferrals |  |  |  |  |  |
Day 1 and other deferrals | 63 | 18 | 81 | 160 | (97) | 63
Total | 63 | 18 | 81 | 160 | (97) | 63

Note: Bracket represents 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 neutralis
ing the bus
iness’
posit
ions through deal
ing away in the market, thereby bring
ing long pos
it
ions to b
id and short posit
ions to offer. The
methodology to calculate the bid-offer adjustment for a derivat
ive portfol
io involves netting between long and short
posit
ions and the group
ing of risk by strike and tenor based on the hedging strategy where long posit
ions are marked
to bid and short posit
ions marked to offer
in the systems.
–
Credit valuation adjustment (CVA):
The Group accounts for CVA against the fair value of derivat
ive products. CVA
is an
adjustment to the fair value of the transactions to reﬂect the possib
il
ity 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
partic
ipant would
include when deriv
ing a purchase pr
ice to acquire our exposures. CVA is calculated for each subsid
iary,
and with
in each ent
ity 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 posit
ive exposure, market-
impl
ied probab
il
ity of
default (PD) and recovery rates. Where market-impl
ied 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 uncertaint
ies assoc
iated with wrong-way risk in the Group’s Prudential
Valuation Adjustments framework.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
165
Directors’ Report and Financ
ial Statements 2024
•
Debit valuation adjustment (DVA):
The Group calculates DVA adjustments on its derivat
ive l
iab
il
it
ies 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 derivat
ive l
iab
il
it
ies, a DVA adjustment
is determined by applying the Group’s probabil
ity of
default to the Group’s negative expected exposure against the counterparty. The Group’s probabil
ity 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 simulat
ion of the underly
ing risk factors
over the expected life of the deal. This simulat
ion methodology
incorporates the collateral posted by the Group and the
effects of master netting agreements.
•
Model valuation adjustment:
Valuation models may have pric
ing deﬁcienc
ies or lim
itat
ions that require a valuation
adjustment. These pric
ing deﬁcienc
ies or lim
itat
ions arise due to the choice, implementat
ion and cal
ibrat
ion of the
pric
ing model.
•
Funding valuation adjustment (FVA):
The Group makes FVA adjustments against derivat
ive products,
includ
ing embedded
derivat
ives. FVA reﬂects an est
imate of the adjustment to its fair value that a market partic
ipant would make to
incorporate funding costs or beneﬁts that could arise in relation to the exposure. FVA is calculated by determin
ing 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 (includ
ing part
ially collateralised) derivat
ives
incorporates the
estimated present value of the market funding cost or beneﬁt associated with funding these transactions.
•
Other fair value adjustments:
The Group calculates the fair value on the interest rate callable products by calibrat
ing to
a set of market prices with differ
ing matur
ity, expiry and strike of the trades.
•
Day one and other deferrals:
In certain circumstances the in
it
ial fair value is based on a valuation technique which differs
to the transaction price at the time of in
it
ial recognit
ion. However, these ga
ins can only be recognised when the valuation
technique used is based primar
ily on observable market data. In those cases where the
in
it
ially 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 immed
iately
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 primar
ily represent adjustments taken to reﬂect the spec
if
ic terms and cond
it
ions of certa
in derivat
ive
contracts which affect the terminat
ion value at the measurement date.
In addit
ion, the Group calculates own cred
it adjustment (OCA) on its issued debt designated at fair value, includ
ing
structured notes, in order to reﬂect changes in its own credit standing. Issued debt is discounted util
is
ing the spread at which
sim
ilar
instruments would be issued or bought back at the measurement date as this reﬂects the value from the perspective
of a market partic
ipant who holds the
ident
ical
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 incept
ion 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
incept
ion of the trade and, conversely, decrease
if its credit standing improves. The Group’s OCA reserve will reverse over
time as its liab
il
it
ies mature.
Fair value hierarchy – ﬁnanc
ial
instruments held at fair value
Assets and liab
il
it
ies carr
ied at fair value or for which fair values are disclosed have been classif
ied
into three levels The fair
values of quoted ﬁnancial assets and l
iab
il
it
ies
in active markets are based on current prices. A market is regarded as active
if transactions for the asset or liab
il
ity take place with sufﬁc
ient frequency and volume to prov
ide pric
ing
informat
ion on an
ongoing basis. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets
for ident
ical
instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor
liqu
id
ity, 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
pric
ing models and, where appropr
iate, comparison with instruments that have characterist
ics s
im
ilar to those of the
instruments held by the Group.
Assets and liab
il
it
ies carr
ied at fair value or for which fair values are disclosed have been classif
ied
into three levels according
to the observabil
ity of the s
ign
iﬁcant
inputs used to determine the fair values. Changes in the observabil
ity of s
ign
iﬁcant
valuation inputs during the reporting period may result in a transfer of assets and liab
il
it
ies w
ith
in the fa
ir value hierarchy.
The Group recognises transfers between levels of the fair value hierarchy when there is a sign
iﬁcant change
in either its
princ
ipal market or the level of observab
il
ity 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 ident
ical assets
or liab
il
it
ies.
•
Level 2:
Fair value measurements are those with quoted prices for sim
ilar
instruments in active markets or quoted prices
for ident
ical or s
im
ilar
instruments in inact
ive markets and ﬁnancial
instruments valued using models where all sign
iﬁcant
inputs are observable.
•
Level 3:
Fair value measurements are those where inputs which could have a sign
iﬁcant effect on the
instrument’s valuation
are not based on observable market data.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
166
Directors’ Report and Financ
ial Statements 2024
The following tables show the classif
icat
ion of ﬁnanc
ial
instruments held at fair value into the valuation hierarchy:
Group

| 2024 | 2023
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Assets | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Financ ial instruments held at fair value through |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |
Loans and advances to banks | – | 2,033 | – | 2,033 | – | 2,265 | – | 2,265
Loans and advances to customers | – | 2,633 | 1,356 | 3,989 | – | 2,016 | 1,172 | 3,188
Reverse repurchase agreements and other |  |  |  |  |  |  |  |
sim ilar secured lend ing | – | 63,047 | 2,556 | 65,603 | – | 66,784 | 1,365 | 68,149
Debt securit ies and other el ig ible b ills | 13,686 | 16,084 | 863 | 30,633 | 11,626 | 9,210 | 1,220 | 22,056
Of which: |  |  |  |  |  |  |  |
Issued by Central banks & Governments | 13,226 | 12,212 | 9 | 25,447 | 11,178 | 5,994 | – | 17,172
Issued by corporates other than ﬁnancial inst itut ions 1 | 3 | 938 | 355 | 1,296 | – | 927 | 318 | 1,245
Issued by ﬁnancial inst itut ions 1 | 457 | 2,934 | 499 | 3,890 | 448 | 2,289 | 902 | 3,639
Equity shares | 1,241 | 9 | 116 | 1,366 | 1,243 | 114 | 85 | 1,442
Derivat ive ﬁnancial instruments | 448 | 82,122 | 147 | 82,717 | 940 | 51,538 | 76 | 52,554
Of which: |  |  |  |  |  |  |  |
Foreign exchange | 201 | 68,511 | 58 | 68,770 | 114 | 45,585 | 24 | 45,723
Interest rate | 27 | 11,558 | 78 | 11,663 | 37 | 5,426 | 3 | 5,466
Credit | – | 792 | 9 | 801 | – | 405 | 47 | 452
Equity and stock index options | – | 204 | 2 | 206 | – | 47 | 2 | 49
Commodity | 220 | 1,057 | – | 1,277 | 789 | 75 | – | 864
Investment securit ies |  |  |  |  |  |  |  |
Debt securit ies and other el ig ible b ills | 27,696 | 31,117 | – | 58,813 | 25,288 | 36,761 | 71 | 62,120
Of which: |  |  |  |  |  |  |  |
Issued by Central banks & Governments | 20,740 | 13,360 | – | 34,100 | 19,475 | 14,530 | 51 | 34,056
Issued by corporates other than ﬁnancial inst itut ions 1 | – | 490 | – | 490 | – | 1,019 | – | 1,019
Issued by ﬁnancial inst itut ions 1 | 6,956 | 17,267 | – | 24,223 | 5,813 | 21,212 | 20 | 27,045
Equity shares | 10 | 3 | 250 | 263 | 183 | 6 | 245 | 434
Total assets at 31 December | 43,081 | 197,048 | 5,288 | 245,417 | 39,280 | 168,694 | 4,234 | 212,208
Liab il it ies |  |  |  |  |  |  |  |
Financ ial instruments held at fair value through |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |
Deposits by banks | – | 1,421 | 50 | 1,471 | – | 1,253 | 68 | 1,321
Customer accounts | – | 8,867 | 355 | 9,222 | – | 8,934 | 232 | 9,166
Repurchase agreements and other |  |  |  |  |  |  |  |
sim ilar secured borrow ing | – | 33,210 | – | 33,210 | – | 39,432 | – | 39,432
Debt securit ies in issue | – | 10,983 | 1,193 | 12,176 | – | 8,824 | 1,026 | 9,850
Short posit ions | 1,596 | 5,074 | 180 | 6,850 | 2,151 | 3,796 | 103 | 6,050
Derivat ive ﬁnancial instruments | 446 | 81,893 | 238 | 82,577 | 740 | 54,271 | 162 | 55,173
Of which: |  |  |  |  |  |  |  |
Foreign exchange | 210 | 67,757 | 11 | 67,978 | 113 | 46,304 | 12 | 46,429
Interest rate | 14 | 12,216 | 23 | 12,253 | 46 | 7,107 | 5 | 7,158
Credit | – | 996 | 166 | 1,162 | – | 448 | 126 | 574
Equity and stock index options | – | 109 | 37 | 146 | – | 108 | 19 | 127
Commodity | 222 | 815 | 1 | 1,038 | 581 | 304 | – | 885
Total liab il it ies at 31 December | 2,042 | 141,448 | 2,016 | 145,506 | 2,891 | 116,510 | 1,591 | 120,992

1
Includes covered bonds of $3,690 mill
ion (2023: $6,377 m
ill
ion), secur
it
ies
issued by Multilateral Development Banks/International Organisat
ions of $8,867 m
ill
ion
(2023: $6,300 mill
ion) and State-owned agenc
ies and development banks of $10,268 mill
ion(2023: $3,186m
ill
ion)
The fair value of ﬁnanc
ial assets and ﬁnancial l
iab
il
it
ies class
if
ied as Level 2
in the fair value hierarchy that are subject to
complex modelling techniques is $512 mill
ion (2023: $707 m
ill
ion) and $180 m
ill
ion (2023: $125 m
ill
ion) respect
ively.
There were no sign
iﬁcant changes to valuat
ion or levelling approaches in 2024.
There were no sign
iﬁcant transfers of ﬁnancial assets and l
iab
il
it
ies measured at fa
ir value between Level 1 and Level 2
during the year.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
167
Directors’ Report and Financ
ial Statements 2024
Company

| 2024 | 2023
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Assets | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Financ ial instruments held at fair value through |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |
Loans and advances to banks | – | 1,880 | – | 1,880 | – | 2,244 | – | 2,244
Loans and advances to customers | – | 2,414 | 862 | 3,276 | – | 1,598 | 1,024 | 2,622
Reverse repurchase agreements and other |  |  |  |  |  |  |  |
sim ilar secured lend ing | – | 59,942 | 2,199 | 62,141 | – | 63,712 | 1,092 | 64,804
Debt securit ies and other el ig ible b ills | 7,505 | 12,078 | 242 | 19,825 | 8,376 | 6,937 | 114 | 15,427
Of which: |  |  |  |  |  |  |  |
Issued by Central banks & governments | 7,112 | 7,281 | – | 14,393 | 7,951 | 3,850 | – | 11,801
Issued by corporates other than ﬁnancial inst itut ions 1 | 3 | 694 | 141 | 838 | – | 427 | 20 | 447
Issued by ﬁnancial inst itut ions 1 | 390 | 4,103 | 101 | 4,594 | 425 | 2,660 | 94 | 3,179
Equity shares | 1,218 | 9 | – | 1,227 | 1,203 | 112 | – | 1,315
Derivat ive ﬁnancial instruments | 484 | 82,230 | 130 | 82,844 | 932 | 52,217 | 72 | 53,221
Of which: |  |  |  |  |  |  |  |
Foreign exchange | 238 | 68,497 | 47 | 68,782 | 107 | 41,092 | 21 | 41,220
Interest rate | 27 | 11,788 | 72 | 11,887 | 37 | 10,478 | 2 | 10,517
Credit | – | 614 | 9 | 623 | – | 432 | 47 | 479
Equity and stock index options | – | 97 | 2 | 99 | – | 21 | 2 | 23
Commodity | 219 | 1,234 | – | 1,453 | 788 | 194 | – | 982
Investment securit ies |  |  |  |  |  |  |  |
Debt securit ies and other el ig ible b ills | 18,882 | 27,768 | – | 46,650 | 21,960 | 32,340 | – | 54,300
Of which: |  |  |  |  |  |  |  |
Issued by central banks & governments | 12,419 | 9,475 | – | 21,894 | 16,376 | 9,855 | – | 26,231
Issued by corporates other than ﬁnancial inst itut ions 1 | – | 490 | – | 490 | – | 1,001 | – | 1,001
Issued by ﬁnancial inst itut ions 1 | 6,463 | 17,803 | – | 24,266 | 5,584 | 21,484 | – | 27,068
Equity shares | 10 | 3 | 233 | 246 | 182 | 1 | 226 | 409
Total ﬁnancial instruments at 31 December 2024 | 28,099 | 186,324 | 3,666 | 218,089 | 32,653 | 159,161 | 2,528 | 194,342
Liab il it ies |  |  |  |  |  |  |  |
Financ ial instruments held at fair value through |  |  |  |  |  |  |  |
proﬁt or loss |  |  |  |  |  |  |  |
Deposits by banks | – | 1,413 | 50 | 1,463 | – | 1,253 | 68 | 1,321
Customer accounts | – | 8,580 | 252 | 8,832 | – | 8,722 | 130 | 8,852
Repurchase agreements and other |  |  |  |  |  |  |  |
sim ilar secured borrow ing | – | 32,880 | – | 32,880 | – | 39,174 | – | 39,174
Debt securit ies in issue | – | 10,932 | 1,130 | 12,062 | – | 8,693 | 861 | 9,554
Short posit ions | 1,413 | 4,853 | 180 | 6,446 | 1,956 | 3,507 | 103 | 5,566
Derivat ive ﬁnancial instruments | 472 | 82,183 | 90 | 82,745 | 737 | 54,732 | 62 | 55,531
Of which: |  |  |  |  |  |  |  |
Foreign exchange | 236 | 68,193 | 27 | 68,456 | 110 | 42,525 | 16 | 42,651
Interest rate | 14 | 12,453 | 23 | 12,490 | 46 | 11,161 | 5 | 11,212
Credit | – | 703 | 16 | 719 | – | 525 | 32 | 557
Equity and stock index options | – | 16 | 23 | 39 | – | 64 | 9 | 73
Commodity | 222 | 818 | 1 | 1,041 | 581 | 457 | – | 1,038
Total ﬁnancial instruments at 31 December 2024 | 1,885 | 140,841 | 1,702 | 144,428 | 2,693 | 116,081 | 1,224 | 119,998

1
Includes covered bonds of $3,608 mill
ion (2023: $6,149 m
ill
ion), secur
it
ies
issued by Multilateral Development Banks/International Organisat
ions of $8,479 m
ill
ion
(2023: $6,118 mill
ion) and State-owned agenc
ies and development banks of $9,883 mill
ion (2023: $3,153 m
ill
ion)
The fair value of ﬁnanc
ial assets and ﬁnancial l
iab
il
it
ies class
if
ied as Level 2
in the fair value hierarchy that are subject to
complex modelling techniques is $105 mill
ion (2023: $489 m
ill
ion) and $124 m
ill
ion (2023: $68 m
ill
ion) respect
ively.
There were no sign
iﬁcant changes to valuat
ion or levelling approaches in 2024.
There were no sign
iﬁcant transfers of ﬁnancial assets and l
iab
il
it
ies measured at fa
ir value between Level 1 and Level 2
during the year.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
168
Directors’ Report and Financ
ial Statements 2024
Fair value hierarchy – ﬁnanc
ial
instruments measured at amortised cost
The following table shows the carrying amounts and incorporates the Group's estimate of fair values of those ﬁnanc
ial assets
and liab
il
it
ies not presented on the Group’s balance sheet at fa
ir value. These fair values may be different from the actual
amount that will be received or paid on the settlement or maturity of the ﬁnanc
ial
instrument. For certain instruments,
the fair value may be determined using assumptions for which no observable prices are available.
Group

| 2024 | 2023
| Carrying | Fair value | Carrying | Fair value
| value | Level 1 | Level 2 | Level 3 | Total | value | Level 1 | Level 2 | Level 3 | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |  |  |
Cash and balances at |  |  |  |  |  |  |  |  |  |
central banks¹ | 56,665 | – | 56,665 | – | 56,665 | 64,198 | – | 64,198 | – | 64,198
Loans and advances to banks | 22,941 | – | 22,780 | 162 | 22,942 | 22,803 | – | 22,746 | – | 22,746
of which – reverse |  |  |  |  |  |  |  |  |  |
repurchase agreements |  |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |  |
secured lending | 2,889 | – | 2,892 | – | 2,892 | 1,653 | – | 1,653 | – | 1,653
Loans and advances to |  |  |  |  |  |  |  |  |  |
customers | 158,242 | – | 35,308 | 125,075 | 160,383 | 156,143 | – | 47,454 | 106,336 | 153,790
of which – reverse |  |  |  |  |  |  |  |  |  |
repurchase agreements |  |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |  |
secured lending | 9,121 | – | 9,121 | – | 9,121 | 13,827 | – | 13,827 | – | 13,827
Investment securit ies² | 37,366 | – | 35,512 | 24 | 35,536 | 39,920 | – | 37,795 | 33 | 37,828
Other assets¹ | 21,535 | – | 21,535 | – | 21,535 | 20,714 | – | 20,714 | – | 20,714
Assets held for sale | 866 | 58 | 335 | 473 | 866 | 693 | 101 | 541 | 51 | 693
At 31 December | 297,615 | 58 | 172,135 | 125,734 | 297,927 | 304,471 | 101 | 193,448 | 106,420 | 299,969
Liab il it ies |  |  |  |  |  |  |  |  |  |
Deposits by banks | 22,409 | – | 22,246 | – | 22,246 | 23,616 | – | 23,671 | – | 23,671
Customer accounts | 239,204 | – | 238,960 | – | 238,960 | 237,902 | – | 234,937 | – | 234,937
Repurchase agreements |  |  |  |  |  |  |  |  |  |
and other sim ilar secured |  |  |  |  |  |  |  |  |  |
borrowing | 9,921 | – | 9,921 | – | 9,921 | 12,033 | – | 12,033 | – | 12,033
Debt securit ies in issue | 39,864 | – | 39,744 | – | 39,744 | 36,481 | – | 36,355 | – | 36,355
Subordinated liab il it ies and |  |  |  |  |  |  |  |  |  |
other borrowed funds | 10,359 | – | 10,360 | – | 10,360 | 11,454 | – | 12,545 | – | 12,545
Other liab il it ies¹ | 27,350 | – | 27,350 | – | 27,350 | 24,109 | – | 24,109 | – | 24,109
Liab il it ies held for sale | 360 | 89 | 271 | – | 360 | 726 | 54 | 672 | – | 726
At 31 December | 349,467 | 89 | 348,852 | – | 348,941 | 346,321 | 54 | 344,322 | – | 344,376

1
The carrying amount of these ﬁnanc
ial
instruments is considered to be a reasonable approximat
ion of fa
ir value as they are short-term in nature or reprice to current
market rates frequently
2
Includes Government bonds and Treasury bills of $14,223 mill
ion at 31 December 2024 and $12,667 m
ill
ion at 31 December 2023
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
169
Directors’ Report and Financ
ial Statements 2024
Company

|  |  | 2024 |  |  |  |  | 2023 |  |
| Carrying |  | Fair value |  |  | Carrying |  | Fair value |  |
| value | Level 1 | Level 2 | Level 3 | Total | value | Level 1 | Level 2 | Level 3 | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |  |  |
Cash and balances at |  |  |  |  |  |  |  |  |  |
central banks¹ | 45,233 | – | 45,233 | – | 45,233 | 52,758 | – | 52,758 | – | 52,758
Loans and advances to banks | 11,755 | – | 11,669 | 87 | 11,756 | 10,135 | – | 10,104 | – | 10,104
of which – reverse |  |  |  |  |  |  |  |  |  |
repurchase agreements |  |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |  |
secured lending | 1,423 | – | 1,426 | – | 1,426 | 554 | – | 554 | – | 554
Loans and advances to |  |  |  |  |  |  |  |  |  |
customers | 77,597 | – | 14,168 | 63,640 | 77,808 | 75,883 | – | 21,435 | 52,113 | 73,548
of which – reverse |  |  |  |  |  |  |  |  |  |
repurchase agreements |  |  |  |  |  |  |  |  |  |
and other sim ilar |  |  |  |  |  |  |  |  |  |
secured lending | 9,041 | – | 9,041 | – | 9,041 | 12,212 | – | 12,212 | – | 12,212
Investment securit ies² | 35,205 | – | 33,387 | – | 33,387 | 38,062 | – | 35,872 | 33 | 35,905
Other assets¹ | 17,587 | – | 17,587 | – | 17,587 | 16,990 | – | 16,990 | – | 16,990
Assets held for sale | 474 | – | – | 474 | 474 | 52 | – | – | 52 | 52
At 31 December 3 | 187,851 | – | 122,044 | 64,201 | 186,245 | 193,880 | – | 137,159 | 52,198 | 189,357
Liab il it ies |  |  |  |  |  |  |  |  |  |
Deposits by banks | 17,824 | – | 17,662 | – | 17,662 | 18,280 | – | 18,335 | – | 18,335
Customer accounts | 119,502 | – | 119,255 | – | 119,255 | 121,648 | – | 121,525 | – | 121,525
Repurchase agreements |  |  |  |  |  |  |  |  |  |
and other sim ilar secured |  |  |  |  |  |  |  |  |  |
borrowing | 9,845 | – | 9,845 | – | 9,845 | 11,977 | – | 11,977 | – | 11,977
Debt securit ies in issue | 36,081 | – | 35,938 | – | 35,938 | 34,740 | – | 34,976 | – | 34,976
Subordinated liab il it ies |  |  |  |  |  |  |  |  |  |
and other borrowed funds | 9,801 | – | 9,801 | – | 9,801 | 10,896 | – | 11,457 | – | 11,457
Other liab il it ies¹ | 21,124 | – | 21,124 | – | 21,124 | 18,879 | – | 18,879 | – | 18,879
Liab il it ies held for sale | – | – | – | – | – | – | – | – | – | –
At 31 December | 214,177 | – | 213,625 | – | 213,625 | 216,420 | – | 217,149 | – | 217,149

1
The carrying amount of these ﬁnanc
ial
instruments is considered to be a reasonable approximat
ion of fa
ir value as they are short-term in nature or reprice to current
market rates frequently
2
Includes Government bonds and Treasury bills of $13,135 mill
ion as at 31 December 2024 and $11,991 m
ill
ion as at 31 December 2023
3
Excludes ‘Amounts due from subsid
iar
ies and other related parties’ of $10,066 mill
ion (31 December 2023: $10,053 m
ill
ion). The carry
ing amounts of due from subsid
iary
undertakings and other related parties approximate fair value
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
170
Directors’ Report and Financ
ial Statements 2024
Loans and advances to customers by client segment
¹
Group

| 2024 | 2023
| Carrying value | Fair value | Carrying value | Fair value
|  | Stage 1 |  |  | Stage 1 |  |  | Stage 1 |  |  | Stage 1 |
|  | and |  |  | and |  |  | and |  |  | and |
| Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & |  |  |  |  |  |  |  |  |  |  |  |
Investment Banking | 1,047 | 89,345 | 90,392 | 921 | 89,602 | 90,523 | 1,525 | 83,008 | 84,533 | 1,513 | 80,659 | 82,172
Wealth & Retail Banking | 501 | 46,515 | 47,016 | 502 | 48,529 | 49,031 | 425 | 47,190 | 47,615 | 426 | 47,197 | 47,623
Ventures | – | 574 | 574 | – | 573 | 573 | – | 230 | 230 | – | 230 | 230
Central & other items | 98 | 20,162 | 20,260 | 98 | 20,158 | 20,256 | 209 | 23,556 | 23,765 | 209 | 23,556 | 23,765
At 31 December | 1,646 | 156,596 | 158,242 | 1,521 | 158,862 | 160,383 | 2,159 | 153,984 | 156,143 | 2,148 | 151,642 | 153,790

1
Loans and advances includes reverse repurchase agreements and other sim
ilar secured lend
ing: carrying value $9,121 mill
ion and fa
ir value $9,121 mill
ion
(31 December 2023: $13,827 mill
ion and $13,827 m
ill
ion respect
ively)
Company

| 2024 | 2023
| Carrying value | Fair value | Carrying value | Fair value
|  | Stage 1 |  |  | Stage 1 |  |  | Stage 1 |  |  | Stage 1 |
|  | and |  |  | and |  |  | and |  |  | and |
| Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Corporate & |  |  |  |  |  |  |  |  |  |  |  |
Investment Banking | 830 | 64,174 | 65,004 | 706 | 64,559 | 65,265 | 1,192 | 60,809 | 62,001 | 1,192 | 58,543 | 59,735
Wealth & Retail Banking | 275 | 11,504 | 11,779 | 275 | 11,454 | 11,729 | 231 | 12,272 | 12,503 | 231 | 12,203 | 12,434
Central & other items | – | 814 | 814 | – | 814 | 814 | 209 | 1,170 | 1,379 | 209 | 1,170 | 1,379
At 31 December | 1,105 | 76,492 | 77,597 | 981 | 76,827 | 77,808 | 1,632 | 74,251 | 75,883 | 1,632 | 71,916 | 73,548

1
Loans and advances includes reverse repurchase agreements and other sim
ilar secured lend
ing: carrying value $9,041 mill
ion and fa
ir value $9,041 mill
ion
(31 December 2023: $12,212 mill
ion and fa
ir value $12,212 mill
ion)
12. Financ
ial
instruments continued
Fair value of ﬁnanc
ial
instruments
Level 3 Summary and sign
iﬁcant unobservable
inputs
The following table presents the Group’s primary Level 3 ﬁnanc
ial
instruments which are held at fair value. The table also
presents the valuation techniques used to measure the fair value of those ﬁnanc
ial
instruments, the sign
iﬁcant unobservable
inputs, the range of values for those inputs and the weighted average of those inputs:
Group

| Value as at 31 |  |  |  |
| December 2024 |  |  |  |
| Assets | Liab il it ies |  | Sign iﬁcant unobservable |  | Weighted
Instrument | $mill ion | $mill ion | Princ ipal valuat ion technique | inputs | Range 1 | average 2
Loans and advances to customers | 1,356 | – | Discounted cash ﬂows | Price/yield | 1.0% - 100% | 25.2%
Reverse repurchase agreements | 2,556 | – | Discounted cash ﬂows | Repo curve | 2.0% - 7.6% | 6.2%
and other sim ilar secured lend ing |  |  |  | Price/yield | 5.0% - 10.5% | 6.1%
Debt securit ies, alternat ive tier one | 854 | – | Discounted cash ﬂows | Price/yield | 5.3% - 15.3% | 8.7%
and other elig ible secur it ies |  |  |  | Recovery rate | 0.01% - 16.3% | 9.2%
Government bonds and | 9 | – | Discounted cash ﬂows | Price/yield | 23.5% - 23.5% | 23.5%
treasury bills |  |  |  |  |  |
Equity shares (includes | 366 | – | Comparable pric ing/y ield | EV/EBITDA multiples | 5.3x - 5.3x | 5.3x
private equity investments) |  |  |  | EV/Revenue multiples | 8.5x - 12.9x | 9.0x
|  |  |  | P/E multiples | 17.9x - 48.3x | 46.9x
|  |  |  | P/B multiples | 0.6x - 0.7x | 0.6x
|  |  |  | P/S multiples | 1.2x - 1.3x | 1.3x
|  |  |  | Liqu id ity discount | 20.0% - 25.0% | 20.0%
|  |  | Discounted cash ﬂows | Discount rates | 9.2% - 20.4% | 12.1%
|  |  | Option pric ing model | Equity value based on | 5.7x - 23.6x | 16.2x
|  |  |  | EV/Revenue multiples |  |
|  |  |  | Equity value based on | 10.1x - 10.1x | 10.1x
|  |  |  | EV/EBITDA multiples |  |
|  |  |  | Equity value based | 50.0% | 50.0%
|  |  |  | on volatil ity | - 50.0% |
Derivat ive ﬁnancial instruments |  |  |  |  |  |
of which: |  |  |  |  |  |
Foreign exchange | 58 | 11 | Option pric ing model Foreign exchange option |  | 10.2% - 46.2% | 42.0%
|  |  |  | impl ied volat il ity |  |
|  |  |  | Interest rate curves | 3.5% - 9.0% | 4.2%
|  |  |  | Foreign exchange curves | (0.03)% | 6.1%
|  |  |  |  | - 34.3% |
Commodit ies | – | 1 | Discounted cash ﬂows | Commodity prices | $384 - $391 | $387
|  |  |  | CM-CM correlation | 73.7% - 97.9% | 86.0%
Interest rate | 78 | 23 | Discounted cash ﬂows | Interest rate curves | 3.5% - 43.9% | 5.1%
|  |  | Option pric ing model | Bond option | 2.3% - 2.9% | 2.7%
|  |  |  | impl ied volat il ity |  |
Credit | 9 | 166 | Discounted cash ﬂows | Credit spreads | 0.1% - 1.7% | 0.8%
|  |  |  | Price/yield | 4.8% - 5.9% | 5.1%
Equity and stock index | 2 | 37 | Internal pric ing model | Equity-Equity correlation | 44.9% - 100% | 80.0%
|  |  |  | Equity-FX correlation | (36.4)% | 5.0%
|  |  |  |  | - 48.9% |
Deposits by banks | – | 50 | Discounted cash ﬂows | Credit spreads | 0.2% - 3.2% | 1.7%
Customer accounts | – | 355 | Discounted cash ﬂows | Price/yield | 4.8% - 12.7% | 7.1%
|  |  |  | Interest rate curves | 3.5% - 4.4% | 4.1%
Debt securit ies in issue | – | 1,193 | Discounted cash ﬂows | Price/yield | 6.2% - 14.8% | 12.7%
|  |  |  | Interest rate curves | 3.5% - 4.4% | 4.1%
|  |  | Internal pric ing model | Equity-FX correlation | (36.4)% | 5.0%
|  |  |  |  | - 48.9% |
|  |  | Option pric ing model | Bond option | 4.0% - 15.0% | 12.5%
|  |  |  | impl ied volat il ity |  |
Short posit ions | – | 180 | Discounted cash ﬂows | Price/yield | 5.9% - 12.7% | 6.3%
Total | 5,288 | 2,016 |  |  |  |

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 ﬁnanc
ial
instruments as at
31 December 2024. The ranges of values used are reﬂective of the underlying characterist
ics of these Level 3 ﬁnancial
instruments based on the market condit
ions 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 ﬁnanc
ial
instruments
2
Weighted average for non-derivat
ive ﬁnancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives has
been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful ind
icator
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
171
Directors’ Report and Financ
ial Statements 2024
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
172
Directors’ Report and Financ
ial Statements 2024

| Value as at 31 |  |  |  |
| December 2023 |  |  |  |
| Assets | Liab il it ies |  | Sign iﬁcant unobservable |  | Weighted
Instrument | $mill ion | $mill ion | Princ ipal valuat ion technique | inputs | Range 1 | average 2
Loans and advances to customers | 1,172 | – | Discounted cash ﬂows | Price/yield | 1.7% - 100% | 14.0%
|  |  |  | Credit spreads | 0.1% - 0.8% | 0.6%
Reverse repurchase agreements | 1,365 | – | Discounted cash ﬂows | Repo curve | 5.1% - 7.6% | 6.3%
and other sim ilar secured lend ing |  |  |  | Price/yield | (2.7)% - 10.3% | (1.2)%
Debt securit ies, alternat ive tier one | 1,240 | – | Discounted cash ﬂows | Price/yield | (14.1)% | 10.1%
and other elig ible secur it ies |  |  |  |  | - 25.8% |
|  |  |  | Recovery rates | 0.1% - 1.0% | 0.2%
|  |  | Internal pric ing model | Equity-Equity correlation | 44.1% - 100% | 80.7%
|  |  |  | Equity-FX correlation | (35.9)% | 14.2%
|  |  |  |  | - 45.5% |
Government bonds and | 51 | – | Discounted cash ﬂows | Price/yield | 17.7% - 21.8% | 20.6%
treasury bills |  |  |  |  |  |
Equity shares (includes private | 330 | – | Comparable pric ing/y ield | EV/Revenue multiples | 9.3x - 30.9x | 15.8x
equity investments) |  |  |  | P/E multiples | 13.2x - 51.8x | 44.8x
|  |  |  | P/B multiples | 0.5x - 2.7x | 2.6x
|  |  |  | P/S multiples | 1.5x - 1.6x | 1.5x
|  |  |  | Liqu id ity discount | 20% - 20% | 20.0%
|  |  | Discounted cash ﬂows | Discount rates | 9.2% - 35.6% | 22.2%
|  |  | Option pric ing model | Equity value based on | 8.4x - 42.5x | 27.5x
|  |  |  | EV/Revenue multiples |  |
|  |  |  | Equity value based on | 3.1x - 3.1x | 3.1x
|  |  |  | EV/EBITDA multiples |  |
|  |  |  | Equity value based on 50.0% - 65.0% |  | 61.9%
|  |  |  | volatil ity |  |
Derivat ive ﬁnancial instruments of which: |  |  |  |  |  |
Foreign exchange | 24 | 12 | Option pric ing model | Foreign exchange | 0.5% - 51% | 24.5%
|  |  |  | option impl ied volat il ity |  |
|  |  | Discounted cash ﬂows | Interest rate curves | 3.6% - 5.8% | 3.8%
|  |  |  | Foreign exchange curves | 0.6% - 64.2% | 12.7%
Interest rate | 3 | 5 | Discounted cash ﬂows | Interest rate curves | 3.6% - 8.5% | 5.2%
Credit | 47 | 126 | Discounted cash ﬂows | Price/yield | 1.8% - 16.3% | 8.7%
Equity and stock index | 2 | 19 | Internal pric ing model | Equity-Equity correlation | 44.1% - 100% | 55.0%
|  |  |  | Equity-FX correlation | (35.9)% | 13.3%
|  |  |  |  | - 45.4% |
Deposits by banks | – | 68 | Discounted cash ﬂows | Credit spreads | 0.6% - 3.4% | 2.0%
Customer accounts | – | 232 | Discounted cash ﬂows | Interest rate curves | 2.9% - 8.6% | 6.1%
|  |  |  | Price/yield | 6.3% - 15.1% | 10.5%
|  |  | Internal pric ing model | Equity-Equity correlation | 44.1% - 100% | 80.7%
|  |  |  | Equity-FX correlation | (35.9)% | 14.2%
|  |  |  |  | - 45.5% |
Debt securit ies in issue | – | 1,026 | Discounted cash ﬂows | Price/yield | 6.6% - 20.9% | 17.9%
|  |  |  | Interest rate curves | 2.9% - 5.3% | 4.4%
|  |  |  | Equity-Equity Correlation | 44.1% - 100% | 80.7%
|  |  | Internal pric ing model | Bond option impl ied | 2.9% - 5.3% | 4.4%
|  |  |  | volatil ity |  |
|  |  |  | Equity-FX correlation | (35.9)% | 14.2%
|  |  |  |  | - 45.5% |
Short posit ions | – | 103 | Discounted cash ﬂows | Price/yield | 7.1% - 7.1% | 7.1%
Total | 4,234 | 1,591 |  |  |  |

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 ﬁnanc
ial
instruments as at
31 December 2023. The ranges of values used are reﬂective of the underlying characterist
ics of these Level 3 ﬁnancial
instruments based on the market condit
ions
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 ﬁnanc
ial
instruments
2
Weighted average for non-derivat
ive ﬁnancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives has
been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful ind
icator
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
173
Directors’ Report and Financ
ial Statements 2024
Company

| Value as at 31 |  |  |  |  |
| December 2024 |  |  |  |  |
| Assets | Liab il it ies |  | Sign iﬁcant unobservable |  | Weighted
Instrument | $mill ion | $mill ion | Princ ipal valuat ion technique | inputs | Range 1 | average 2
Loans and advances to customers | 862 | – | Discounted cash ﬂows | Price/yield | 1.8% - 100% | 36.1%
Reverse repurchase agreements | 2,199 | – | Discounted cash ﬂows | Repo Curve | 2.0% - 7.6% | 6.7%
and other sim ilar secured lend ing |  |  |  | Price/yield | 5.0% - 10.5% | 6.1%
Debt securit ies, alternat ive tier one | 242 | – | Discounted cash ﬂows | Price/yield | 5.3% - 15.3% | 11.7%
and other elig ible secur it ies |  |  |  | Recovery rate | 0.01% - 15.0% | 7.6%
Equity shares (includes | 233 | – | Comparable pric ing/y ield | P/E multiples | 48.3x - 48.3x | 45.7x
private equity investments) |  |  |  | P/B multiples | 0.7x - 3.2x | 1.3x
|  |  |  | Liqu id ity discount | 20.0% | 20.0%
|  |  |  |  | - 20.0% |
|  |  | Discounted cash ﬂows | Discount rates | 12.5% - 20.4% | 19.1%
|  |  | Option pric ing model | Equity value based on | 6.4x - 6.4x | 6.4x
|  |  |  | EV/Revenue multiples |  |
Derivat ive ﬁnancial instruments |  |  |  |  |  |
of which: |  |  |  |  |  |
Foreign exchange | 47 | 27 | Option pric ing model Foreign exchange option |  | 10.2% - 46.2% | 42.0%
|  |  |  | impl ied volat il ity |  |
|  |  |  | Interest rate curves | 3.5% - 7.2% | 4.2%
|  |  |  | Foreign exchange curves | (0.03)% | 6.9%
|  |  |  |  | - 34.3% |
Commodit ies | – | 1 | Discounted cash ﬂows | Commodity prices | $384 - $391 | $387
|  |  |  | CM-CM correlation | 73.7% - 97.9% | 86.0%
Interest rate | 72 | 23 | Discounted cash ﬂows | Interest rate curves | 3.5% - 7.2% | 5.1%
Credit | 9 | 16 | Discounted cash ﬂows | Credit spreads | 0.1% - 1.7% | 0.8%
|  |  |  | Price/yield | 4.8% - 5.9% | 5.3%
Equity and stock index | 2 | 23 | Internal pric ing model | Equity-Equity correlation | 44.9% - 100% | 80.0%
|  |  |  | Equity-FX correlation | (36.4)% | 5.0%
|  |  |  |  | - 48.9% |
Deposits by banks | – | 50 | Discounted cash ﬂows | Credit spreads | 0.2% - 3.2% | 1.7%
Customer accounts | – | 252 | Discounted cash ﬂows | Price/yield | 5.7% - 12.7% | 7.5%
|  |  |  | Interest rate curves | 3.5% - 4.4% | 4.1%
Debt securit ies in issue | – | 1,130 | Discounted cash ﬂows | Price/yield | 6.2% - 14.8% | 13.3%
|  |  |  | Interest rate curves | 3.5% - 4.4% | 4.1%
|  |  | Internal pric ing model | Equity-Equity correlation | 44.9% - 100% | 80.0%
|  |  |  | Equity-FX correlation | (36.4)% | 5.0%
|  |  |  |  | - 48.9% |
|  |  | Option pric ing model | Bond option impl ied | 4.0% - 15.0% | 12.5%
|  |  |  | volatil ity |  |
Short posit ions | – | 180 | Discounted cash ﬂows | Price/yield | 5.9% - 12.7% | 6.3%
Total | 3,666 | 1,702 |  |  |  |

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 ﬁnanc
ial
instruments as at
31 December 2024. The ranges of values used are reﬂective of the underlying characterist
ics of these Level 3 ﬁnancial
instruments based on the market condit
ions
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 ﬁnanc
ial
instruments
2
Weighted average for non-derivat
ive ﬁnancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives has
been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful ind
icator
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
174
Directors’ Report and Financ
ial Statements 2024

| Value as at 31 |  |  |  |  |
| December 2023 |  |  |  |  |
| Assets | Liab il it ies |  | Sign iﬁcant unobservable |  | Weighted
Instrument | $mill ion | $mill ion | Princ ipal valuat ion technique | inputs | Range 1 | average 2
Loans and advances to customers | 1,024 | – | Discounted cash ﬂows | Price/yield | 1.7% - 100% | 14.3%
|  |  |  | Credit spreads | 0.1% - 0.8% | 0.6%
Reverse repurchase agreements | 1,092 | – | Discounted cash ﬂows | Repo curve | 5.1% - 7.6% | 6.5%
and other sim ilar secured lend ing |  |  |  | Price/yield | (2.7)% - 10.3% | (1.2)%
Debt securit ies, alternat ive tier one | 114 | – | Discounted cash ﬂows | Price/yield | (2.8)% - 25.8% | 10.0%
and other elig ible secur it ies |  |  |  | Recovery rates | 0.1% - 0.1% | 0.1%
Equity shares (includes | 226 | – | Comparable pric ing/y ield | P/E multiples | 51.8x | 43.1x
private equity investments) |  |  |  | P/B multiples | 0.6x - 2.7x | 2.6x
|  |  |  | P/S multiples | N/A | N/A
|  |  |  | Liqu id ity discount | 20.0% | 20.0%
|  |  |  |  | - 20.0% |
|  |  | Discounted cash ﬂows | Discount rates | 12.6% - 18.5% | 16.9%
|  |  | Option pric ing model | Equity value based on | 10.7x | 10.7x
|  |  |  | EV/Revenue multiples |  |
|  |  |  | Equity value based on | N/A | N/A
|  |  |  | EV/EBITDA multiples |  |
|  |  |  | Equity value based on | N/A | N/A
|  |  |  | volatil ity |  |
Derivat ive ﬁnancial instruments |  |  |  |  |  |
of which: |  |  |  |  |  |
Foreign exchange | 21 | 16 | Option pric ing model | Foreign exchange | 0.5% - 51% | 35.2%
|  |  |  | option impl ied volat il ity |  |
|  |  | Discounted cash ﬂows | Interest rate curves | 3.6% - 5.8% | 3.8%
|  |  |  | Foreign exchange curves | 0.6% - 64.2% | 20.7%
Interest rate | 2 | 5 | Discounted cash ﬂows | Interest rate curves | 3.6% - 7.5% | 5.0%
Credit | 47 | 32 | Discounted cash ﬂows | Price/yield | 1.8% - 16.3% | 8.9%
Equity and stock index | 2 | 9 | Internal pric ing model Equity-Equity Correlation |  | 44.1% - 100% | 80.7%
|  |  |  | Equity-FX Correlation | (35.9)% | 14.2%
|  |  |  |  | - 45.5% |
Deposits by banks | – | 68 | Discounted cash ﬂows | Credit spreads | 0.6% - 3.4% | 2.0%
Customer accounts | – | 130 | Discounted cash ﬂows | Interest rate curves | 6.4% - 8.6% | 7.1%
|  |  |  | Price/yield | 6.3% - 15.1% | 9.7%
Debt securit ies in issue | – | 861 | Discounted cash ﬂows | Price/yield | 6.6% - 18.2% | 18.0%
|  |  |  | Interest rate curves | 2.9% - 5.3% | 4.4%
|  |  | Internal pric ing model | Equity-Equity correlation | 44.1% - 100% | 80.7%
|  |  |  | Equity-FX correlation | (35.9)% | 14.2%
|  |  |  |  | - 45.5% |
|  |  |  | Bond option impl ied | 2.9% - 5.3% | 4.4%
|  |  |  | volatil ity |  |
Short posit ion | – | 103 | Discounted cash ﬂows | Price/yield | 7.1% - 7.1% | 7.1%
Total | 2,528 | 1,224 |  |  |  |

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 ﬁnanc
ial
instruments as at
31 December 2023. The ranges of values used are reﬂective of the underlying characterist
ics of these Level 3 ﬁnancial
instruments based on the market condit
ions
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 ﬁnanc
ial
instruments
2
Weighted average for non-derivat
ive ﬁnancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives has
been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful ind
icator
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
175
Directors’ Report and Financ
ial Statements 2024
The following section describes the sign
iﬁcant unobservable
inputs ident
iﬁed
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 impl
ied y
ield
(or spread over a liqu
id benchmark) from the pr
ice of a comparable instrument, then adjust
ing that y
ield (or spread) to
derive a value for the instrument. The adjustment should account for relevant differences in the ﬁnanc
ial
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, deriv
ing a fa
ir value for a
junior unsecured bond from the pr
ice of a senior secured bond). An increase in price, in isolat
ion, would result
in a favourable
movement in the fair value of the asset. An increase in yield, in isolat
ion, 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, an interest rate correlation refers to the correlation between
two swap rates, while commodity correlation is correlation between two commodity underlying prices
•
Commodity price curves is the term structure for forward rates over a specif
ied per
iod
•
Credit spread represents the addit
ional y
ield that a market partic
ipant would demand for tak
ing 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, Depreciat
ion and Amort
isat
ion
(EBITDA). EV is the aggregate market capital
isat
ion and debt minus the cash and cash equivalents. An increase in
EV/EBITDA multiples, 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 specif
ied per
iod
•
Net asset value (NAV) is the value of an entity's assets after deducting any liab
il
it
ies.
•
Interest rate curves is the term structure of interest rates and measure of future interest rates at a particular point in time
•
Liqu
id
ity discounts in the valuation of unlisted investments primar
ily appl
ied to the valuation of unlisted ﬁrms’ investments
to reﬂect the fact that these stocks are not actively traded. An increase in liqu
id
ity discount will result an unfavourable
movement in the fair value of the unlisted ﬁrm
•
Price-Earnings (P/E) multiples is the ratio of the market value of 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 rates are the expectation of the rate of return resulting from the liqu
idat
ion of a particular loan. As the probabil
ity
of default increases for a given instrument, the valuation of that instrument will increas
ingly reﬂect
its expected recovery
level assuming default. An increase in the recovery rate, in isolat
ion, 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.
•
Volatil
ity represents an est
imate of how much a particular instrument, parameter or index will change in value over time.
Generally, the higher the volatil
ity, the more expens
ive the option will be
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
176
Directors’ Report and Financ
ial Statements 2024
Level 3 movement tables – ﬁnancial assets
The table below analyses movements in Level 3 ﬁnanc
ial assets carr
ied at fair value.
Group
Assets

| Held at fair value through proﬁt or loss | Investment securit ies
|  |  | Reverse |  |  |  |  |  |
|  |  | repurchase | Debt |  |  | Debt |  |
|  |  | agreements | securit ies, |  |  | securit ies, |  |
|  |  | and other | alternative |  |  | alternative |  |
| Loans and | Loans and | sim ilar | tier one and |  | Derivat ive | tier one and |  |
| advances to | advances to | secured | other | Equity | ﬁnancial | other | Equity |
| banks | customers | lending | elig ible b ills | shares | instruments | elig ible b ills | shares | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 01 January 2024 | – | 1,172 | 1,365 | 1,220 | 85 | 76 | 71 | 245 | 4,234
Total (losses)/gains |  |  |  |  |  |  |  |  |
recognised in |  |  |  |  |  |  |  |  |
income statement | (1) | (16) | 18 | (122) | 7 | (51) | – | – | (165)
Net trading income | (1) | (16) | 18 | (64) | 7 | (51) | – | – | (107)
Other operating income | – | – | – | (58) | – | – | – | – | (58)
Total losses recognised |  |  |  |  |  |  |  |  |
in other comprehensive |  |  |  |  |  |  |  |  |
income (OCI) | – | – | – | – | – | – | (11) | (8) | (19)
Fair value through |  |  |  |  |  |  |  |  |
OCI reserve | – | – | – | – | – | – | – | (4) | (4)
Exchange difference | – | – | – | – | – | – | (11) | (4) | (15)
Purchases | – | 1,262 | 6,071 | 647 | 24 | 290 | – | 9 | 8,303
Sales | – | (1,261) | (4,251) | (899) | – | (174) | – | – | (6,585)
Settlements | (7) | (41) | (782) | – | – | (22) | – | – | (852)
Transfers out 1 | (13) | (243) | (5) | – | – | (7) | (260) | – | (528)
Transfers in 2 | 21 | 483 | 140 | 17 | – | 35 | 200 | 4 | 900
At 31 December 2024 | – | 1,356 | 2,556 | 863 | 116 | 147 | – | 250 | 5,288
Recognised in the |  |  |  |  |  |  |  |  |
income statement 3 | – | 7 | 1 | (1) | 7 | (15) | – | – | (1)
At 01 January 2023 | 21 | 1,308 | 1,988 | 807 | 92 | 44 | – | 484 | 4,744
Total gains/(losses) |  |  |  |  |  |  |  |  |
recognised in |  |  |  |  |  |  |  |  |
income statement | – | (15) | (49) | (260) | (8) | 13 | – | – | (319)
Net trading income | – | (15) | (49) | (272) | (8) | 13 | – | – | (331)
Other operating income | – | – | – | 12 | – | – | – | – | 12
Total gains recognised |  |  |  |  |  |  |  |  |
in other comprehensive |  |  |  |  |  |  |  |  |
income (OCI) | – | – | – | – | – | – | 1 | 42 | 43
Fair value through |  |  |  |  |  |  |  |  |
OCI reserve | – | – | – | – | – | – | – | 43 | 43
Exchange difference | – | – | – | – | – | – | 1 | (1) | –
Purchases | 22 | 1,046 | 4,838 | 1,051 | 1 | 189 | 21 | 1 | 7,169
Sales | (22) | (1,133) | (3,943) | (516) | – | (118) | (23) | (5) | (5,760)
Settlements | – | (16) | (1,469) | – | – | (25) | – | – | (1,510)
Transfers out 1 | (21) | (224) | – | (6) | – | (27) | (5) | (284) | (567)
Transfers in 2 | – | 206 | – | 144 | – | – | 77 | 7 | 434
At 31 December 2023 | – | 1,172 | 1,365 | 1,220 | 85 | 76 | 71 | 245 | 4,234
Recognised in the |  |  |  |  |  |  |  |  |
income statement 3 | – | (3) | 3 | (3) | (8) | (11) | – | – | (22)

1
Transfers out includes loans and advances, debt securit
ies, alternat
ive tier one and other elig
ible b
ills, reverse repurchase agreements and other sim
ilar secured lend
ing
and derivat
ive ﬁnancial
instruments where the valuation parameters became observable during the period and were transferred to Level 1 and Level 2
2
Transfers in primar
ily relate to loans and advances, debt secur
it
ies, alternat
ive tier one and other elig
ible b
ills, reverse repurchase agreements and other sim
ilar secured
lending, equity shares and derivat
ive ﬁnancial
instruments where the valuation parameters become unobservable during the year
3
Represents total unrealised (losses)/gains recognised in the income statement, with
in net trad
ing income, relating to change in fair value of assets
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
177
Directors’ Report and Financ
ial Statements 2024
Level 3 movement tables – ﬁnancial assets
The table below analyses movements in Level 3 ﬁnanc
ial assets carr
ied at fair value.
Company
Assets

| Held at fair value through proﬁt or loss | Investment securit ies
|  |  | Reverse | Debt |  |  |  | Debt |  |
|  |  | repurchase | securit ies, |  |  |  | securit ies, |  |
|  |  | agreements | alternative |  |  |  | alternative |  |
|  | Loans and | and other | tier one |  |  |  | tier one |  |
| Loans and | advances | sim ilar | and other |  |  | Derivat ive | and other |  |
| advances | to | secured | elig ible | Equity | Other | ﬁnancial | elig ible | Equity |
| to banks | customers | lending | bills | shares | Assets | instruments | bills | shares | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 01 January 2024 | – | 1,024 | 1,092 | 114 | – | – | 72 | – | 226 | 2,528
Total (losses)/gains |  |  |  |  |  |  |  |  |  |
recognised in |  |  |  |  |  |  |  |  |  |
income statement | – | (24) | 17 | (50) | – | – | (41) | – | – | (98)
Net trading income | – | (24) | 17 | (50) | – | – | (41) | – | – | (98)
Other operating income | – | – | – | – | – | – | – | – | – | –
Total losses recognised |  |  |  |  |  |  |  |  |  |
in other comprehensive |  |  |  |  |  |  |  |  |  |
income (OCI) | – | – | – | – | – | – | – | – | – | –
Fair value through |  |  |  |  |  |  |  |  |  |
OCI reserve | – | – | – | – | – | – | – | – | 1 | 1
Exchange difference | – | – | – | – | – | – | – | – | (1) | (1)
Purchases | – | 683 | 5,177 | 423 | – | – | 317 | – | 9 | 6,609
Sales | (20) | (939) | (3,392) | (253) | – | – | (213) | – | – | (4,817)
Settlements | – | (28) | (782) | – | – | – | (13) | – | – | (823)
Transfers out 1 | – | (226) | (5) | – | – | – | (24) | (200) | (2) | (457)
Transfers in 2 | 20 | 372 | 92 | 8 | – | – | 32 | 200 | – | 724
At 31 December 2024 | – | 862 | 2,199 | 242 | – | – | 130 | – | 233 | 3,666
Recognised in the |  |  |  |  |  |  |  |  |  |
income statement 3 | – | – | – | – | – | – | (13) | – | – | (13)
At 01 January 2023 | – | 899 | 1,988 | 469 | – | – | 39 | – | 220 | 3,615
Total (losses) /gains |  |  |  |  |  |  |  |  |  |
recognised in |  |  |  |  |  |  |  |  |  |
income statement | – | (4) | (52) | (267) | – | – | 13 | – | – | (310)
Net trading income | – | (4) | (52) | (267) | – | – | 13 | – | – | (310)
Other operating income | – | – | – | – | – | – | – | – | – | –
Total gains recognised in |  |  |  |  |  |  |  |  |  |
other comprehensive |  |  |  |  |  |  |  |  |  |
income (OCI) | – | – | – | – | – | – | – | – | 42 | 42
Fair value through |  |  |  |  |  |  |  |  |  |
OCI reserve | – | – | – | – | – | – | – | – | 42 | 42
Exchange difference | – | – | – | – | – | – | – | – | – | –
Purchases | – | 957 | 4,568 | 208 | – | – | 171 | – | 1 | 5,905
Sales | – | (798) | (3,943) | (289) | – | – | (111) | – | (5) | (5,146)
Settlements | – | (9) | (1,469) | – | – | – | (17) | – | – | (1,495)
Transfers out 1 | – | (216) | – | (8) | – | – | (23) | – | (32) | (279)
Transfers in 2 | – | 195 | – | 1 | – | – | – | – | – | 196
At 31 December 2023 | – | 1,024 | 1,092 | 114 | – | – | 72 | – | 226 | 2,528
Recognised in the |  |  |  |  |  |  |  |  |  |
income statement 3 | – | – | – | – | – | – | (9) | – | – | (9)

1
Transfers out includes loans and advances, debt securit
ies, alternat
ive tier one and other elig
ible b
ills, reverse repurchase agreements and other sim
ilar secured lend
ing
and derivat
ive ﬁnancial
instruments where the valuation parameters became observable during the period and were transferred to Level 1 and Level 2
2
Transfers in primar
ily relate to loans and advances, debt secur
it
ies, alternat
ive tier one and other elig
ible b
ills, reverse repurchase agreements and other sim
ilar secured
lending and derivat
ive ﬁnancial
instruments where the valuation parameters become unobservable during the year
3
Represents Total unrealised (losses)/gains recognised in the income statement, with
in net trad
ing income, relating to change in fair value of assets
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
178
Directors’ Report and Financ
ial Statements 2024
Level 3 movement tables – ﬁnancial l
iab
il
it
ies
Group

|  |  | Debt | Derivat ive |  |
| Deposits by | Customer | securit ies in | ﬁnancial | Short |
| banks | accounts | issue | instruments | posit ions | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 01 January 2024 | 68 | 232 | 1,026 | 162 | 103 | 1,591
Total losses recognised in income statement – |  |  |  |  |  |
net trading income | 29 | 9 | 16 | 4 | 3 | 61
Issues | 33 | 776 | 3,785 | 483 | 177 | 5,254
Settlements | (80) | (644) | (2,641) | (407) | (103) | (3,875)
Transfers out 1 | – | (26) | (1,063) | (10) | – | (1,099)
Transfers in 2 | – | 8 | 70 | 6 | – | 84
At 31 December 2024 | 50 | 355 | 1,193 | 238 | 180 | 2,016
Recognised in the income statement 3 | 29 | 5 | 2 | 2 | – | 38
At 01 January 2023 | 133 | 170 | 427 | 118 | 40 | 888
Total (gains)/losses recognised in income statement |  |  |  |  |  |
– net trading income | – | (20) | 32 | (53) | 3 | (38)
Issues | 293 | 509 | 1,466 | 404 | 100 | 2,772
Settlements | (353) | (442) | (1,178) | (297) | (40) | (2,310)
Transfers out 1 | (5) | (9) | (85) | (13) | – | (112)
Transfers in 2 | – | 24 | 364 | 3 | – | 391
At 31 December 2023 | 68 | 232 | 1,026 | 162 | 103 | 1,591
Recognised in the income statement 3 | – | (21) | 6 | (47) | – | (62)

1
Transfers out during the year primar
ily relates to debt secur
it
ies
in issue, customer accounts and derivat
ive ﬁnancial
instruments where the valuation parameters
became observable during the year and were transferred to Level 2 ﬁnanc
ial l
iab
il
it
ies
2
Transfers in during the year primar
ily relates to customer accounts, debt secur
it
ies
in issue and derivat
ive ﬁnancial
instruments where the valuation parameters
became unobservable during the year
3
Represents Total unrealised losses/(gains) recognised in the income statement, with
in net trad
ing income, relating to change in fair value of liab
il
it
ies
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
179
Directors’ Report and Financ
ial Statements 2024
Company

|  |  | Debt | Derivat ive |  |
| Deposits by | Customer | securit ies in | ﬁnancial | Short |
| banks | accounts | issue | instruments | posit ions | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 01 January 2024 | 68 | 130 | 861 | 62 | 103 | 1,224
Total losses recognised in income statement – net |  |  |  |  |  |
trading income | 29 | 4 | 13 | 3 | 3 | 52
Issues | 33 | 545 | 3,487 | 140 | 177 | 4,382
Settlements | (80) | (429) | (2,238) | (116) | (103) | (2,966)
Transfers out 1 | – | (26) | (1,063) | (5) | – | (1,094)
Transfers in 2 | – | 28 | 70 | 6 | – | 104
At 31 December 2024 | 50 | 252 | 1,130 | 90 | 180 | 1,702
Recognised in the income statement 3 | 29 | – | – | (1) | – | 28
At 01 January 2023 | 119 | 67 | 262 | 110 | 40 | 598
Total losses/(gains) recognised in income statement |  |  |  |  |  |
– net trading income | – | 2 | 26 | (16) | 3 | 15
Issues | 281 | 260 | 993 | 154 | 100 | 1,788
Settlements | (327) | (203) | (699) | (177) | (40) | (1,446)
Transfers out 1 | (5) | – | (85) | (9) | – | (99)
Transfers in 2 | – | 4 | 364 | – | – | 368
At 31 December 2023 | 68 | 130 | 861 | 62 | 103 | 1,224
Recognised in the income statement 3 | – | – | – | (10) | – | (10)

1
Transfers out during the year primar
ily relates to debt secur
it
ies
in issue, customer accounts and derivat
ive ﬁnancial
instruments where the valuation parameters
became observable during the year and were transferred to Level 2 ﬁnanc
ial l
iab
il
it
ies
2
Transfers in during the year primar
ily relates to debt secur
it
ies
in issue, customer accounts and derivat
ive ﬁnancial
instruments where the valuation parameters become
unobservable during the year
3
Represents total unrealised losses/(gains) recognised in the income statement, with
in net trad
ing income, relating to change in fair value of liab
il
it
ies
Sensit
iv
it
ies
in respect of the fair values of Level 3 assets and liab
il
it
ies
Sensit
iv
ity analysis is performed on products with sign
iﬁcant 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 statist
ical analys
is performed on a set of reference prices based on the composit
ion
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 sensit
iv
ity analysis assumes a one-way market move and does not
consider offsets for hedges.
12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
180
Directors’ Report and Financ
ial Statements 2024
Group

|  |  |  | Fair value through other
| Held at fair value through proﬁt or loss | comprehensive income
|  | Favourable | Unfavourable |  | Favourable | Unfavourable
| Net exposure | changes | changes | Net exposure | changes | changes
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Financ ial instruments held at fair value |  |  |  |  |  |
Loans and advances | 1,356 | 1,388 | 1,296 | – | – | –
Reverse Repurchase agreements and other sim ilar |  |  |  |  |  |
secured lending | 2,556 | 2,591 | 2,521 | – | – | –
Debt securit ies, alternat ive tier one and other |  |  |  |  |  |
elig ible b ills | 863 | 896 | 831 | – | – | –
Equity shares | 116 | 127 | 105 | 250 | 275 | 225
Derivat ive ﬁnancial instruments | (91) | (79) | (105) | – | – | –
Customers accounts | (355) | (344) | (367) | – | – | –
Deposits by banks | (50) | (50) | (50) | – | – | –
Short posit ions | (180) | (178) | (182) | – | – | –
Debt securit ies in issue | (1,193) | (1,134) | (1,252) | – | – | –
At 31 December 2024 | 3,022 | 3,217 | 2,797 | 250 | 275 | 225
Financ ial instruments held at fair value |  |  |  |  |  |
Loans and advances | 1,172 | 1,186 | 1,140 | – | – | –
Reverse Repurchase agreements and other sim ilar |  |  |  |  |  |
secured lending | 1,365 | 1,367 | 1,362 | – | – | –
Debt securit ies, alternat ive tier one and other |  |  |  |  |  |
elig ible b ills | 1,220 | 1,265 | 1,153 | 71 | 77 | 65
Equity shares | 85 | 94 | 77 | 245 | 270 | 221
Derivat ive ﬁnancial instruments | (86) | (44) | (127) | – | – | –
Customers accounts | (232) | (218) | (246) | – | – | –
Deposits by banks | (68) | (68) | (68) | – | – | –
Short posit ions | (103) | (101) | (105) | – | – | –
Debt securit ies in issue | (1,026) | (951) | (1,100) | – | – | –
At 31 December 2023 | 2,327 | 2,530 | 2,086 | 316 | 347 | 286

The reasonably possible alternatives could have increased or decreased the fair values of ﬁnanc
ial
instruments held at
fair value through proﬁt or loss and those classif
ied as fa
ir value through other comprehensive income by the amounts
disclosed below.

| Fair value changes
| Possible increase | Possible decrease
| 2024 | 2023 | 2024 | 2023
Financ ial instruments | $mill ion | $mill ion | $mill ion | $mill ion
Held at fair value through proﬁt or loss | 195 | 203 | (225) | (241)
Fair value through other comprehensive income | 25 | 31 | (25) | (30)

12. Financ
ial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
181
Directors’ Report and Financ
ial Statements 2024
Company

|  |  |  | Fair value through other
| Held at fair value through proﬁt or loss | comprehensive income
|  | Favourable | Unfavourable |  | Favourable | Unfavourable
| Net exposure | changes | changes | Net exposure | changes | changes
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Financ ial instruments held at fair value |  |  |  |  |  |
Loans and advances | 862 | 888 | 819 | – | – | –
Reverse Repurchase agreements and other sim ilar |  |  |  |  |  |
secured lending | 2,199 | 2,232 | 2,165 | – | – | –
Debt securit ies, alternat ive tier one and other |  |  |  |  |  |
elig ible b ills | 242 | 247 | 237 | – | – | –
Equity shares | – | – | – | 233 | 256 | 210
Derivat ive ﬁnancial instruments | 40 | 52 | 27 | – | – | –
Customers accounts | (252) | (244) | (261) | – | – | –
Deposits by banks | (50) | (50) | (50) | – | – | –
Short posit ions | (180) | (178) | (182) | – | – | –
Debt securit ies in issue | (1,130) | (1,076) | (1,184) | – | – | –
At 31 December 2024 | 1,731 | 1,871 | 1,571 | 233 | 256 | 210
Financ ial instruments held at fair value |  |  |  |  |  |
Loans and advances | 1,024 | 1,037 | 999 | – | – | –
Reverse Repurchase agreements and other sim ilar |  |  |  |  |  |
secured lending | 1,092 | 1,094 | 1,090 | – | – | –
Debt securit ies, alternat ive tier one and other |  |  |  |  |  |
elig ible b ills | 114 | 118 | 110 | – | – | –
Equity shares | – | – | – | 226 | 249 | 203
Derivat ive ﬁnancial instruments | 10 | 15 | 5 | – | – | –
Customers accounts | (130) | (122) | (138) | – | – | –
Deposits by banks | (68) | (68) | (68) | – | – | –
Short posit ions | (103) | (101) | (105) | – | – | –
Debt securit ies in issue | (861) | (788) | (934) | – | – | –
At 31 December 2023 | 1,078 | 1,185 | 959 | 226 | 249 | 203

The reasonably possible alternatives could have increased or decreased the fair values of ﬁnanc
ial
instruments held at
fair value through proﬁt or loss and those classif
ied as fa
ir value through other comprehensive income by the amounts
disclosed below.
Financ
ial
instruments

| Fair value changes
| Possible increase | Possible decrease
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Held at fair value through proﬁt or loss | 140 | 107 | (160) | (119)
Fair value through other comprehensive income | 23 | 23 | (23) | (23)

Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
182
Directors’ Report and Financ
ial Statements 2024
13. Derivat
ive ﬁnancial
instruments
Accounting policy
Fair values may be obtained from quoted market prices in active markets, recent market transactions, and valuation
techniques, includ
ing d
iscounted cash ﬂow models and option pric
ing models, as appropr
iate. Where the in
it
ially recognised
fair value of a derivat
ive contract
is based on a valuation model that uses inputs which are not observable in the market,
it follows the same in
it
ial recognit
ion account
ing policy as for other ﬁnanc
ial assets and l
iab
il
it
ies. All der
ivat
ives are carr
ied
as assets when fair value is posit
ive and as l
iab
il
it
ies when fa
ir value is negative.
Hedge accounting
Under certain condit
ions, the Group may des
ignate a recognised asset or liab
il
ity, a ﬁrm commitment, highly probable
forecast transaction or net investment of a foreign operation into a formal hedge accounting relationsh
ip w
ith a derivat
ive
that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group,
as a policy choice to continue to apply hedge accounting in accordance with IAS 39. The Group applied IBOR reform Phase 2
reliefs in respect of hedging relationsh
ips d
irectly affected by IBOR reform.
There are three categories of hedge relationsh
ips:
•
Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liab
il
it
ies
or ﬁrm commitments
•
Cash ﬂow hedge: to manage interest rate or foreign exchange risk of highly probable future cash ﬂows attributable
to a recognised asset or liab
il
ity, or a forecasted transaction
•
Net investment hedge: to manage the structural foreign exchange risk of an investment in a foreign operation
The Group assesses, both at hedge incept
ion and on a quarterly bas
is, whether the derivat
ives des
ignated in hedge
relationsh
ips are h
ighly effective in offsetting changes in fair values or cash ﬂows of hedged items. Hedges are considered
to be highly effective if all the following criter
ia are met:
•
At incept
ion of the hedge and throughout
its life, the hedge is prospectively expected to be highly effective in achiev
ing
offsetting changes in fair value or cash ﬂows attributable to the hedged risk
•
Prospective and retrospective effectiveness of the hedge should be with
in a range of 80–125%. Th
is is tested using
regression analysis
•
This is tested using regression analysis where the slope of the regression line must be between -0.80 and -1.25 and the data
pairs between the hedged item and the hedging instrument are regressed to a 95% conﬁdence interval. The regression
co-efﬁcient (R squared), wh
ich measures the correlation between the variables in the regression, is at least 80%
In the case of the hedge of a forecast transaction, the transaction must have a high probabil
ity of occurr
ing and must
present an exposure to variat
ions
in cash ﬂows that are expected to affect reported proﬁt or loss.
Fair value hedge
Changes in the fair value of derivat
ives that are des
ignated and qualify as fair value hedging instruments are recorded
in net trading income, together with any changes in the fair value of the hedged asset or liab
il
ity that are attributable to
the hedged risk. If the hedge no longer meets the criter
ia for hedge account
ing, the adjustment to the carrying amount
of a hedged item for which the effective interest method is used is amortised to the income statement over the remain
ing
term to maturity of the hedged item. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised
immed
iately
in the income statement. For ﬁnanc
ial assets class
if
ied as fa
ir value through other comprehensive income,
the hedge accounting adjustment attributable to the hedged risk is included in net trading income to match the
hedging derivat
ive.
Cash ﬂow hedge
The effective portion of changes in the fair value of derivat
ives that are des
ignated and qualify as cash ﬂow hedging
instruments are in
it
ially recognised in other comprehensive income, accumulating in the cash ﬂow hedge reserve with
in
equity. These amounts are subsequently recycled to the income statement in the periods when the hedged item affects
proﬁt or loss. Both the derivat
ive fa
ir value movement and any recycled amount are recorded in the ‘Cashﬂow hedges’ line
item in other comprehensive income.
The Group assesses hedge effectiveness using the hypothetical derivat
ive method, wh
ich creates a derivat
ive
instrument to
serve as a proxy for the hedged transaction. The terms of the hypothetical derivat
ive match the cr
it
ical terms of the hedged
item and it has a fair value of zero at incept
ion. The hypothet
ical derivat
ive and the actual der
ivat
ive are regressed to
establish the statist
ical s
ign
iﬁcance of the hedge relat
ionsh
ip. Any
ineffect
ive port
ion of the gain or loss on the hedging
instrument is recognised in the net trading income immed
iately.
If a cash ﬂow hedge is discont
inued, the amount accumulated
in the cash ﬂow hedge reserve is released to the income
statement as and when the hedged item affects the income statement.
Should the Group consider the hedged future cash ﬂows are no longer expected to occur due to reasons, the cumulative
gain or loss will be immed
iately reclass
if
ied to proﬁt or loss.
13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
183
Directors’ Report and Financ
ial Statements 2024
Net investment hedge
Hedges of net investments are accounted for in a sim
ilar manner to cash ﬂow hedges, w
ith gains and losses aris
ing on the
effective portion of the hedges recorded in the line ‘Exchange differences on translation of foreign operations’ in other
comprehensive income, accumulating in the translation reserve with
in equ
ity. These amounts remain in equity until the net
investment is disposed of. The ineffect
ive port
ion of the hedges is recognised in the net trading income immed
iately.
The tables below analyse the notional princ
ipal amounts and the pos
it
ive and negat
ive fair values of derivat
ive ﬁnancial
instruments. Notional princ
ipal amounts are the amounts of pr
inc
ipal underly
ing the contract at the reporting date.
Derivat
ives
Group

| 2024 | 2023
| Notional |  |  | Notional |  |
| princ ipal |  |  | princ ipal |  |
| amounts | Assets | Liab il it ies | amounts | Assets | Liab il it ies
Derivat ives | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Foreign exchange derivat ive contracts: |  |  |  |  |  |
Forward foreign exchange contracts | 5,007,030 | 55,423 | 53,632 | 3,315,302 | 36,523 | 36,348
Currency swaps and options | 1,241,536 | 13,347 | 14,346 | 967,868 | 9,200 | 10,081
| 6,248,566 | 68,770 | 67,978 | 4,283,170 | 45,723 | 46,429
Interest rate derivat ive contracts: |  |  |  |  |  |
Swaps | 6,790,635 | 24,809 | 25,007 | 4,412,137 | 51,193 | 52,496
Forward rate agreements and options | 292,625 | 2,283 | 2,678 | 309,630 | 2,001 | 2,382
| 7,083,260 | 27,092 | 27,685 | 4,721,767 | 53,194 | 54,878
Exchange traded futures and options | 375,487 | 30 | 27 | 321,138 | 39 | 47
Credit derivat ive contracts | 220,389 | 801 | 1,162 | 272,695 | 452 | 574
Equity and stock index options | 7,427 | 206 | 146 | 6,771 | 49 | 127
Commodity derivat ive contracts | 142,065 | 1,277 | 1,038 | 112,846 | 864 | 885
Gross total derivat ives | 14,077,194 | 98,176 | 98,036 | 9,718,387 | 100,321 | 102,940
Offset 1 | – | (15,459) | (15,459) | – | (47,767) | (47,767)
Total derivat ives | 14,077,194 | 82,717 | 82,577 | 9,718,387 | 52,554 | 55,173

1
In 2024, the Group migrated contracts from Collateralized to Market (CTM) to Settled to Market (STM) for house cleared contracts with London Clearing House
Company

| 2024 | 2023
| Notional |  |  | Notional |  |
| princ ipal |  |  | princ ipal |  |
| amounts | Assets | Liab il it ies | amounts | Assets | Liab il it ies
Derivat ives | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Foreign exchange derivat ive contracts: |  |  |  |  |  |
Forward foreign exchange contracts | 5,040,980 | 55,576 | 54,196 | 3,857,570 | 31,658 | 31,966
Currency swaps and options | 1,233,628 | 13,206 | 14,260 | 1,001,366 | 9,562 | 10,685
| 6,274,608 | 68,782 | 68,456 | 4,858,936 | 41,220 | 42,651
Interest rate derivat ive contracts: |  |  |  |  |  |
Swaps | 6,826,162 | 25,053 | 25,248 | 4,979,421 | 56,121 | 56,504
Forward rate agreements and options | 293,160 | 2,263 | 2,674 | 312,356 | 2,124 | 2,428
| 7,119,322 | 27,316 | 27,922 | 5,291,777 | 58,245 | 58,932
Exchange traded futures and options | 375,487 | 30 | 27 | 321,138 | 39 | 47
Credit derivat ive contracts | 213,526 | 623 | 719 | 278,156 | 479 | 557
Equity and stock index options | 2,210 | 99 | 39 | 4,486 | 23 | 73
Commodity derivat ive contracts | 143,982 | 1,453 | 1,041 | 117,875 | 982 | 1,038
Gross total derivat ives | 14,129,135 | 98,303 | 98,204 | 10,872,368 | 100,988 | 103,298
Offset 1 | – | (15,459) | (15,459) | – | (47,767) | (47,767)
Total derivat ives | 14,129,135 | 82,844 | 82,745 | 10,872,368 | 53,221 | 55,531

1
In 2024, the Group migrated contracts from Collateralized to Market (CTM) to Settled to Market (STM) for house cleared contracts with London Clearing House
13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
184
Directors’ Report and Financ
ial Statements 2024
The Group lim
its exposure to cred
it 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 enforceabil
ity of the
right to offset (e.g. via legal opin
ion) and the ab
il
ity and
intent
ion to settle on a net bas
is (e.g. via operational practice).
The Group may enter into economic hedges that do not qualify for IAS 39 hedge accounting treatment, includ
ing der
ivat
ive
such as interest rate swaps, interest rate futures and cross currency swaps to manage interest rate and currency risks of the
Group. These derivat
ives are measured at fa
ir value, with fair value changes recognised in net trading income: refer to
Market risk (page 96).
The Derivat
ives and Hedg
ing sections of the Risk review and Capital review (page 99) explain the Group’s risk management
of derivat
ive contracts and appl
icat
ion of hedg
ing.
Derivat
ives held for hedg
ing
The Group enters into derivat
ive contracts for the purpose of hedg
ing interest rate, currency and structural foreign exchange
risks inherent in assets, liab
il
it
ies and forecast transact
ions. The table below summarises the notional princ
ipal amounts
and carrying values of derivat
ives des
ignated in hedge accounting relationsh
ips at the report
ing date.
Group

| 2024 | 2023
| Notional |  |  | Notional |  |
| princ ipal |  |  | princ ipal |  |
| amounts | Assets | Liab il it ies | amounts | Assets | Liab il it ies
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Derivat ives des ignated as fair value hedges: |  |  |  |  |  |
Interest rate swaps | 42,694 | 639 | 622 | 47,257 | 1,115 | 1,224
Currency swaps | 1,035 | – | 56 | 115 | 10 | 6
| 43,729 | 639 | 678 | 47,372 | 1,125 | 1,230
Derivat ives des ignated as cash ﬂow hedges: |  |  |  |  |  |
Interest rate swaps | 32,651 | 68 | 134 | 35,467 | 99 | 535
Forward foreign exchange contracts | 9,173 | 608 | – | 11,862 | 416 | 183
Currency swaps | 2,163 | 114 | 1 | 1,007 | 21 | 4
| 43,987 | 790 | 135 | 48,336 | 536 | 722
Derivat ives des ignated as net investment hedges: |  |  |  |  |  |
Forward foreign exchange contracts | 3,222 | 36 | – | 4,402 | 10 | 12
Total derivat ives held for hedg ing | 90,938 | 1,465 | 813 | 100,110 | 1,671 | 1,964

Company

| 2024 | 2023
| Notional |  |  | Notional |  |
| princ ipal |  |  | princ ipal |  |
| amounts | Assets | Liab il it ies | amounts | Assets | Liab il it ies
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Derivat ives des ignated as fair value hedges: |  |  |  |  |  |
Interest rate swaps | 41,622 | 616 | 621 | 45,062 | 1,075 | 1,207
Currency swaps | – | – | – | 115 | 10 | 6
| 41,622 | 616 | 621 | 45,177 | 1,085 | 1,213
Derivat ives des ignated as cash ﬂow hedges: |  |  |  |  |  |
Interest rate swaps | 23,611 | 49 | 60 | 33,330 | 81 | 535
Forward foreign exchange contracts | 8,884 | 578 | – | 11,097 | 416 | 165
Currency swaps | 1,231 | 31 | – | 199 | 4 | 1
| 33,726 | 658 | 60 | 44,626 | 501 | 701
Derivat ives des ignated as net investment hedges: |  |  |  |  |  |
Forward foreign exchange contracts | 3,222 | 36 | – | 3,339 | 8 | 3
Total derivat ives held for hedg ing | 78,570 | 1,310 | 681 | 93,142 | 1,594 | 1,917

13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
185
Directors’ Report and Financ
ial Statements 2024
Fair value hedges
The Group issues various long-term ﬁxed-rate debt issuances that are measured at amortised cost, includ
ing some
denominated in foreign currency, such as unsecured senior and subordinated debt (see Notes 22 and 27). The Group also
holds various ﬁxed rate debt securit
ies such as government and corporate bonds,
includ
ing some denom
inated in foreign
currency (see Note 12). These assets and liab
il
it
ies held are exposed to changes
in fair value due to movements in market
interest and foreign currency rates.
The Group uses interest rate swaps to exchange ﬁxed rates for ﬂoating rates on funding to match ﬂoating rates received on
assets, or exchange ﬁxed rates on assets to match ﬂoating rates paid on funding. The Group further uses cross- currency
swaps to match the currency of the issued debt or held asset with that of the entity’s functional currency.
Hedge ineffect
iveness from fa
ir value hedges is driven by cross-currency basis risk and interest cashﬂows mismatch between
the hedging instruments and underlying hedged items. The amortisat
ion of fa
ir value hedge adjustments for hedged items
no longer designated is recognised in net interest income.
At 31 December 2024 the Group held the following interest rate and cross currency swaps as hedging instruments in fair value
hedges of interest and currency risk.
Hedging instruments and ineffect
iveness
Group

|  | Carrying Amount | Change in fair |  |
|  |  |  | value used to |  |
|  |  |  | calculate |  | Ineffectiveness
|  |  |  | hedge |  | recognised in
| Notional | Asset | Liab il ity ineffect | iveness |  | proﬁt or loss
Interest rate 1 | $mill ion | $mill ion | $mill ion | $mill ion |  | $mill ion
Interest rate swaps – debt securit ies/subord inated notes issued | 28,236 | 199 | 588 | (57) |  | (4)
Interest rate swaps – loans and advances to customers | 807 | 1 | 12 | (3) |  | –
Interest rate swaps – debt securit ies and other el ig ible b ills | 13,651 | 439 | 22 | 141 |  | 2
Interest and currency risk 1 |  |  |  |  |  |
Cross currency swaps – debt securit ies/subord inated notes issued | 1,035 | – | 56 | (52) |  | (1)
Cross currency swaps – debt securit ies and other el ig ible b ills | – | – | – | (10) |  | –
Total at 31 December 2024 | 43,729 | 639 | 678 | 19 |  | (3)
Interest rate swaps – debt securit ies/subord inated notes issued | 26,617 | 311 | 1,107 | 574 |  | 3
Interest rate swaps – loans and advances to customers | 537 | 5 | 1 | 1 |  | –
Interest rate swaps – debt securit ies and other el ig ible b ills | 20,103 | 799 | 116 | (382) |  | (14)
Interest and currency risk 1 |  |  |  |  |  |
Cross currency swaps – debt securit ies/subord inated notes issued | 70 | – | 6 | (2) |  | –
Cross currency swaps – debt securit ies and other el ig ible b ills | 45 | 10 | – | 10 |  | –
Total at 31 December 2023 | 47,372 | 1,125 | 1,230 | 201 |  | (11)

1
Interest rate swaps are designated in hedges of the fair value of interest rate risk attributable to the hedged item. Cross currency swaps are used to hedge both interest
rate and currency risks. All the hedging instruments are derivat
ives, w
ith changes in fair value includ
ing hedge
ineffect
iveness recorded w
ith
in net trad
ing income
13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
186
Directors’ Report and Financ
ial Statements 2024
Hedged items in fair value hedges

|  |  | Accumulated amount of fair |  | Cumulative
|  |  | value hedge adjustments |  | balance of fair
|  |  | included in the carrying |  | value
| Carrying Amount | amount |  | adjustments
|  |  |  |  | Change in the | from
|  |  |  |  | value used for | de-
|  |  |  |  | calculating | designated
|  |  |  |  | hedge | hedge
| Asset | Liab il ity | Asset | Liab il ity | ineffect iveness¹ | relationsh ips²
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Debt securit ies/subord inated notes issued | – | 29,845 | – | 503 | 104 | (242)
Debt securit ies and other el ig ible b ills | 13,195 | – | (327) | – | (130) | 204
Loans and advances to customers | 811 | – | 4 | – | 4 | 4
Total at 31 December 2024 | 14,006 | 29,845 | (323) | 503 | (22) | (34)
Debt securit ies/subord inated notes issued | – | 27,465 | – | 674 | (569) | (50)
Debt securit ies and other el ig ible b ills | 18,977 | – | (520) | – | 358 | 591
Loans and advances to customers | 534 | – | (4) | – | (1) | 11
Total at 31 December 2023 | 19,511 | 27,465 | (524) | 674 | (212) | 552

1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
2
This represents a credit/(debit) to the balance sheet value
Income statement impact of fair value hedges

| 2024 | 2023
| $mill ion | $mill ion
Change in fair value of hedging instruments | 19 | 201
Change in fair value of hedged risks attributable to hedged items | (22) | (212)
Net ineffect iveness loss to net trad ing income | (3) | (11)
Amortisat ion ga in to net interest income | 129 | 193

Hedging instruments and ineffect
iveness
Company

|  | Carrying Amount |  | Change in fair |  |
|  |  |  | value used to |  |
|  |  |  | calculate |  | Ineffectiveness
|  |  |  | hedge |  | recognised in
| Notional | Asset | Liab il ity ineffect | iveness |  | proﬁt or loss
Interest rate 1 | $mill ion | $mill ion | $mill ion | $mill ion |  | $mill ion
Interest rate swaps – debt securit ies/subord inated notes issued | 28,236 | 200 | 588 | (57) |  | (4)
Interest rate swaps – loans and advances to customers | 760 | – | 12 | (4) |  | –
Interest rate swaps – debt securit ies and other el ig ible b ills | 12,626 | 416 | 21 | 137 |  | 2
Interest and currency risk 1 |  |  |  |  |  |
Cross currency swaps – debt securit ies/subord inated notes issued | – | – | – | 8 |  | –
Cross currency swaps – debt securit ies and other el ig ible b ills | – | – | – | (10) |  | –
Total at 31 December 2024 | 41,622 | 616 | 621 | 74 |  | (2)
Interest rate swaps – debt securit ies/subord inated notes issued | 26,617 | 311 | 1,107 | 575 |  | 3
Interest rate swaps – loans and advances to customers | 509 | 4 | 1 | – |  | –
Interest rate swaps – debt securit ies and other el ig ible b ills | 17,936 | 760 | 99 | (367) |  | (13)
Interest and currency risk¹ |  |  |  |  |  |
Cross currency swaps – debt securit ies/subord inated notes issued | 70 | – | 6 | (2) |  | –
Cross currency swaps – debt securit ies and other el ig ible b ills | 45 | 10 | – | 10 |  | –
Total at 31 December 2023 | 45,177 | 1,085 | 1,213 | 216 |  | (10)

1
Interest rate swaps are designated in hedges of the fair value of interest rate risk attributable to the hedged item. Cross currency swaps are used to hedge both interest
rate and currency risks. All the hedging instruments are derivat
ives, w
ith changes in fair value includ
ing hedge
ineffect
iveness recorded w
ith
in net trad
ing income
13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
187
Directors’ Report and Financ
ial Statements 2024
Hedged Items in fair value hedges

|  |  | Accumulated amount of fair |  | Cumulative
|  |  | value hedge adjustments |  | balance of fair
|  |  | included in the carrying |  | value
| Carrying Amount | amount |  | adjustments
|  |  |  |  | Change in the | from
|  |  |  |  | value used for | de-
|  |  |  |  | calculating | designated
|  |  |  |  | hedge | hedge
| Asset | Liab il ity | Asset | Liab il ity | ineffect iveness¹ | relationsh ips²
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Debt securit ies/subord inated notes issued | – | 28,751 | – | 444 | 45 | (242)
Debt securit ies and other el ig ible b ills | 12,192 | – | (314) | – | (125) | 204
Loans and advances to customers | 765 | – | 5 | – | 4 | 4
Total at 31 December 2024 | 12,957 | 28,751 | (309) | 444 | (76) | (34)
Debt securit ies/subord inated notes issued | – | 27,465 | – | 674 | (570) | (50)
Debt securit ies and other el ig ible b ills | 16,867 | – | (510) | – | 344 | 564
Loans and advances to customers | 507 | – | (2) | – | – | 11
Total at 31 December 2023 | 17,374 | 27,465 | (512) | 674 | (226) | 525

1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
2
This represents a credit/(debit) to the balance sheet value
Income statement impact of fair value hedges

| 2024 | 2023
| $mill ion | $mill ion
Change in fair value of hedging instruments | 74 | 216
Change in fair value of hedged risks attributable to hedged items | (76) | (226)
Net ineffect iveness loss to net trad ing income | (2) | (10)
Amortisat ion ga in to net interest income | 131 | 192

Cash ﬂow hedges
The Group has exposure to market movements in future interest cash ﬂows on portfolios of customer accounts, debt
securit
ies and loans and advances to customers. The amounts and t
im
ing of future cash ﬂows, represent
ing both princ
ipal
and interest ﬂows, are projected on the basis of contractual terms and other relevant factors, includ
ing est
imates of
prepayments and defaults.
The hedging strategy of the Group involves using interest rate swaps to manage the variab
il
ity in future cash ﬂows on assets
and liab
il
it
ies that have ﬂoat
ing rates of interest by exchanging the ﬂoating rates for ﬁxed rates. It also uses foreign exchange
contracts and currency swaps to manage the variab
il
ity in future exchange rates on its assets and liab
il
it
ies and costs
in
foreign currencies. This is done on both a micro basis whereby a single interest rate or cross-currency swap is designated in a
separate relationsh
ip w
ith a single hedged item (such as a ﬂoating-rate loan to a customer), and on a portfolio basis whereby
each hedging instrument is designated against a group of hedged items that share the same risk (such as a group of
customer accounts). Hedge ineffect
iveness for cash ﬂow hedges
is mainly driven by payment frequency mismatch between
the hedging instrument and the underlying hedged item.
The hedged risk is determined as the variab
il
ity of future cash ﬂows aris
ing from changes
in the designated benchmark
interest and/or foreign exchange rates.
13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
188
Directors’ Report and Financ
ial Statements 2024
Hedging instruments and ineffect
iveness
Group

|  | Carrying Amount | Change in fair |  | Ineffectiveness |
|  |  |  | value used to |  | (loss)/gain | Amount
|  |  |  | calculate | Gain | recognised in | reclassif ied
|  |  |  | hedge | recognised | net trading | from reserves
| Notional | Asset | Liab il ity | ineffect iveness | in OCI | income | to income
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Interest rate risk |  |  |  |  |  |  |
Interest rate swaps | 32,651 | 68 | 134 | (1) | 2 | (3) | –
Currency risk |  |  |  |  |  |  |
Forward foreign exchange contract | 9,173 | 608 | – | 42 | 42 | – | –
Cross currency swaps | 2,163 | 114 | 1 | 76 | 77 | (1) | –
Total as at 31 December 2024 | 43,987 | 790 | 135 | 117 | 121 | (4) | –
Interest rate risk |  |  |  |  |  |  |
Interest rate swaps | 35,467 | 99 | 535 | 501 | 499 | 2 | –
Currency risk |  |  |  |  |  |  |
Forward foreign exchange contract | 11,862 | 416 | 183 | 107 | 106 | 1 | –
Cross currency swaps | 1,007 | 21 | 4 | – | – | – | –
Total as at 31 December 2023 | 48,336 | 536 | 722 | 608 | 605 | 3 | –

Hedged items in cash ﬂow hedges

|  | 2024 |  |  | 2023 |
|  |  | Cumulative |  |  | Cumulative
|  |  | balance in the |  |  | balance in the
|  |  | cash ﬂow |  |  | cash ﬂow
|  |  | hedge reserve |  |  | hedge reserve
| Change in fair |  | from | Change in fair |  | from
| value used for |  | de- | value used for |  | de-
| calculating |  | designated | calculating |  | designated
| hedge | Cash ﬂow | hedge | hedge | Cash ﬂow | hedge
| ineffect iveness¹ | hedge reserve | relationsh ips | ineffect iveness¹ | hedge reserve | relationsh ips
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Customer accounts | (82) | (3) | 16 | (389) | (74) | 25
Debt securit ies and other el ig ible b ills | (7) | (16) | (4) | (19) | (28) | (12)
Loans and advances to customers | 22 | 32 | (6) | (197) | 77 | –
Intragroup borrowing currency hedge | (54) | – | – | – | – | –
Total at 31 December | (121) | 13 | 6 | (605) | (25) | 13

1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
Impact of cash ﬂow hedges on proﬁt and loss and other comprehensive income

| 2024 | 2023
| Income/ | Income/
| (expense) | (expense)
| $mill ion | $mill ion
Cash ﬂow hedge reserve balance as at 1 January | (13) | (513)
Gains recognised in other comprehensive income on effective portion of changes in fair value of |  |
hedging instruments | 121 | 605
Gains reclassif ied to income statement when hedged item affected net proﬁt | (89) | (22)
Taxation credit relating to cash ﬂow hedges | (11) | (83)
Cash ﬂow hedge reserve balance as at 31 December | 8 | (13)

13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
189
Directors’ Report and Financ
ial Statements 2024
Hedging instruments and ineffect
iveness
Company

|  | Carrying Amount | Change in fair |  | Ineffectiveness
|  |  |  | value used to |  | (loss)/gain
|  |  |  | calculate | Gains | recognised in
|  |  |  | hedge | recognised | net trading
| Notional | Asset | Liab il ity | ineffect iveness | in OCI | income
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Interest rate risk |  |  |  |  |  |
Interest rate swaps | 23,611 | 49 | 60 | 45 | 47 | (2)
Currency risk |  |  |  |  |  |
Forward foreign exchange contract | 8,884 | 578 | – | 34 | 34 | –
Cross currency swaps | 1,231 | 31 | – | 53 | 53 | –
Total as at 31 December 2024 | 33,726 | 658 | 60 | 132 | 134 | (2)
Interest rate risk |  |  |  |  |  |
Interest rate swaps | 33,330 | 81 | 535 | 478 | 476 | 2
Currency risk |  |  |  |  |  |
Forward foreign exchange contract | 11,097 | 416 | 165 | 107 | 106 | 1
Cross currency swaps | 199 | 4 | 1 | – | – | –
Total as at 31 December 2023 | 44,626 | 501 | 701 | 585 | 582 | 3

Hedged items in cash ﬂow hedges

| 2024 | 2023
|  |  | Cumulative |  |  | Cumulative
|  |  | balance in the |  |  | balance in the
|  |  | cash ﬂow |  |  | cash ﬂow
|  |  | hedge reserve |  |  | hedge reserve
| Change in fair |  | from | Change in fair |  | from
| value used for |  | de- | value used for |  | de-
| calculating |  | designated | calculating |  | designated
| hedge | Cash ﬂow | hedge | hedge | Cash ﬂow | hedge
| ineffect iveness¹ | hedge reserve | relationsh ips | ineffect iveness¹ | hedge reserve | relationsh ips
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Customer accounts | (81) | (3) | 16 | (389) | (74) | 25
Debt securit ies and other el ig ible b ills | (5) | (18) | (4) | (19) | (28) | (12)
Loans and advances to customers | 6 | 31 | (6) | (174) | 60 | –
Intragroup borrowing currency hedge | (54) | – | – | – | – | –
Total at 31 December | (134) | 10 | 6 | (582) | (42) | 13

1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
Impact of cash ﬂow hedges on proﬁt and loss and other comprehensive income

| 2024 | 2023
| $mill ion | $mill ion
Cash ﬂow hedge reserve balance as at 1 January | (51) | (522)
Gains recognised in other comprehensive income on effective portion of changes in fair value of |  |
hedging instruments | 134 | 582
Gains reclassif ied to income statement when hedged item affected net proﬁt | (88) | (32)
Taxation credit relating to cash ﬂow hedges | (12) | (79)
Cash ﬂow hedge reserve balance as at 31 December | (17) | (51)

13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
190
Directors’ Report and Financ
ial Statements 2024
Net investment hedges
Foreign currency exposures arise from investments in subsid
iar
ies that have a different functional currency from that of the
presentation currency of the Group. This risk arises from the ﬂuctuation in spot exchange rates between the functional
currency of the subsid
iar
ies and the Group’s presentation currency, which causes the value of the investment to vary.
The Group’s policy is to hedge these exposures only when not doing so would be expected to have a sign
iﬁcant
impact on the
regulatory ratios of the Group and its banking subsid
iar
ies. The Group uses foreign exchange forwards to manage the effect
of exchange rates on its net investments in foreign subsid
iar
ies.
Hedging instruments and ineffect
iveness
Group

|  | Carrying amount |  | Changes in |  |
|  |  |  |  | the value of |  |
|  |  |  | Change in fair | the hedging |  | Amount
|  |  |  | value used to | instrument | Ineffectiveness | reclassif ied
|  |  |  | calculate hedge | recognised in | recognised in | from reserves
| Notional | Asset | Liab il ity | ineffect iveness 2 | OCI | proﬁt or loss | to income
Derivat ive forward currency contracts 1 | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at 31 December 2024 | 3,222 | 36 | – | 44 | 44 | – | –
As at 31 December 2023 | 4,402 | 10 | 12 | (18) | (18) | – | –

1
These derivat
ive forward currency contracts have a matur
ity of less than one year. The hedges are rolled on a period
ic bas
is
2
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
Hedged items in net investment hedges

| 2024 | 2023
|  |  | Balances |  |  | Balances
|  |  | remain ing in |  |  | remain ing in
|  |  | the translation |  |  | the translation
|  |  | reserve from |  |  | reserve from
|  |  | hedging |  |  | hedging
|  |  | relationsh ips |  |  | relationsh ips
| Change in the |  | for which | Change in the |  | for which
| value used for |  | hedge | value used for |  | hedge
| calculating |  | accounting is | calculating |  | accounting is
| hedge | Translation | no longer | hedge | Translation | no longer
| ineffect iveness¹ | reserve² | applied | ineffect iveness¹ | reserve² | applied
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Net investments | (44) | 36 | – | 18 | (2) | –

Impact of net investment hedges on other comprehensive income

| 2024 | 2023
| $mill ion | $mill ion
Gains/(losses) recognised in other comprehensive income | 44 | (18)

1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
2
This represents the mark-to-market includ
ing accrued
interest on live hedges at 31 December
Hedging instruments and ineffect
iveness
Company

|  | Carrying amount |  | Changes in |  |
|  |  |  |  | the value of |  |
|  |  |  | Change in fair | the hedging |  | Amount
|  |  |  | value used to | instrument | Ineffectiveness | reclassif ied
|  |  |  | calculate hedge | recognised in | recognised in | from reserves
| Notional | Asset | Liab il ity | ineffect iveness 2 | OCI | proﬁt or loss | to income
Derivat ive forward currency contracts 1 | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
As at 31 December 2024 | 3,222 | 36 | – | 15 | 15 | – | –
As at 31 December 2023 | 3,339 | 8 | 3 | (16) | (16) | – | –

1
These derivat
ive forward currency contracts have a matur
ity of less than one year. The hedges are rolled on a period
ic bas
is
2
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
191
Directors’ Report and Financ
ial Statements 2024
Hedged items in net investment hedges

| 2024 | 2023
|  |  | Balances |  |  | Balances
|  |  | remain ing in |  |  | remain ing in
|  |  | the translation |  |  | the translation
|  |  | reserve from |  |  | reserve from
|  |  | hedging |  |  | hedging
|  |  | relationsh ips |  |  | relationsh ips
| Change in the |  | for which | Change in the |  | for which
| value used for |  | hedge | value used for |  | hedge
| calculating |  | accounting is | calculating |  | accounting is
| hedge | Translation | no longer | hedge | Translation | no longer
| ineffect iveness¹ | reserve² | applied | ineffect iveness¹ | reserve² | applied
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Net investments | (15) | 36 | – | 16 | 5 | –

1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
2
This represents the mark-to-market includ
ing accrued
interest on live hedges at 31 December
Impact of net investment hedges on other comprehensive income

| 2024 | 2023
| $mill ion | $mill ion
Gains/(losses) recognised in other comprehensive income | 15 | (16)

13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
192
Directors’ Report and Financ
ial Statements 2024
Maturity of hedging instruments
Group

|  | 2024 | 2023
|  |  | More than |  |  |  | More than |  |
|  |  | one month |  |  |  | one month |  |
|  |  | and less |  |  |  | and less |  |
|  | Less than | than one | One to ﬁve | More than | Less than | than one | One to ﬁve | More than
Fair value hedges |  | one month | year | years | ﬁve years | one month | year | years | ﬁve years
Interest rate swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | 1,300 | 8,850 | 22,506 | 10,038 | 2,914 | 6,142 | 28,697 | 9,504
Cross currency swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | – | – | 1,035 | – | – | 115 | – | –
Average ﬁxed interest | GBP | – | – | – | – | – | 1.33% | – | –
rate (to USD) | CNH | – | – | – | – | – | 3.17% | – | –
| EUR | – | – | 2.40% | – | – | – | – | –
Average exchange rate | GBP/USD | – | – | – | – | – | 0.66 | – | –
| HKD/USD | – | – | – | – | – | 6.37 | – | –
| EUR/USD | – | – | 0.91 | – | – | – | – | –
Cash ﬂow hedges |  |  |  |  |  |  |  |  |
Interest rate swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | 2,250 | 13,331 | 15,286 | 1,784 | 1,990 | 25,831 | 7,239 | 407
Average ﬁxed | USD | 5.02% | 4.59% | 4.06% | 3.74% | 5.09% | 3.39% | 4.68% | 3.16%
interest rate |  |  |  |  |  |  |  |  |
Cross currency swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | 28 | 1,525 | 610 | – | 74 | 735 | 198 | –
| KRO | – | – | – | – | – | 4.11% | 3.11% | –
| THO | – | – | – | – | – | 2.17% | 2.36% | –
| IDR | – | – | – | – | – | 6.43% | – | –
| INR | – | 9.19% | 11.41% | – | – | 7.85% | 10.02% | –
| JPY | – | 0.08% | – | – | – | – | – | –
| BRL | – | – | 10.89% | – | – | – | – | –
Average exchange rate | INR/USD | – | 83.63 | 83.20 | – | – | 82.90 | 82.69 | –
| KRO/USD | – | – | – | – | – | 1,275.24 | 1,220.50 | –
| THO/USD | – | – | – | – | – | 33.72 | 33.72 | –
| IDR/USD | – | – | – | – | – | 15,715.00 | – | –
| JPY/USD | – | 153.62 | – | – | – | – | – | –
| BRL/USD | – | – | 5.53 | – | – | – | – | –
Forward foreign |  |  |  |  |  |  |  |  |
exchange contracts |  |  |  |  |  |  |  |  |
Notional | $mill ion | 2,024 | 6,860 | 289 | – | 2,194 | 9,668 | – | –
Average exchange rate | JPY/USD | 147.38 | 145.65 | – | – | 130.49 | 136.05 | – | –
| BRL/USD | – | – | 6.54 | – | – | 5.17 | – | –
Net investment hedges |  |  |  |  |  |  |  |  |
Foreign exchange |  |  |  |  |  |  |  |  |
derivat ives |  |  |  |  |  |  |  |  |
Notional | $mill ion | 3,222 | – | – | – | 4,402 | – | – | –
Average exchange rate | INR/USD | 84.07 | – | – | – | 82.91 | – | – | –
| SGD/USD | – | – | – | – | 1.33 | – | – | –
| AED/USD | 3.67 | – | – | – | 3.67 | – | – | –

13. Derivat
ive ﬁnancial
instruments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
193
Directors’ Report and Financ
ial Statements 2024
Maturity of hedging instruments
Company

|  | 2024 | 2023
|  |  | More than |  |  |  | More than |  |
|  |  | one month |  |  |  | one month |  |
|  |  | and less |  |  |  | and less |  |
|  | Less than | than one | One to ﬁve | More than | Less than | than one | One to ﬁve | More than
Fair value hedges |  | one month | year | years | ﬁve years | one month | year | years | ﬁve years
Interest rate swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | 1,300 | 8,715 | 21,569 | 10,038 | 2,914 | 6,142 | 26,502 | 9,504
Cross currency swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | – | – | – | – | – | 115 | – | –
Average ﬁxed interest | GBP | – | – | – | – | – | 1.33% | – | –
rate (to USD) | CNH | – | – | – | – | – | 3.17% | – | –
Average exchange rate | GBP/USD | – | – | – | – | – | 0.66 | – | –
| HKD/USD | – | – | – | – | – | 6.37 | – | –
Cash ﬂow hedges |  |  |  |  |  |  |  |  |
Interest rate swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | 2,005 | 11,373 | 9,449 | 784 | 1,965 | 25,058 | 5,900 | 407
Average ﬁxed | USD | 5.36% | 4.30% | 4.29% | 3.95% | 5.09% | 2.59% | 4.56% | 2.65%
interest rate |  |  |  |  |  |  |  |  |
Cross currency swap |  |  |  |  |  |  |  |  |
Notional | $mill ion | – | 1,231 | – | – | – | 199 | – | –
Average ﬁxed | KRO | – | – | – | – | – | 3.13% | – | –
interest rate | PHP | – | – | – | – | – | 6.30% | – | –
| IDR | – | – | – | – | – | 6.43% | – | –
| JPY | – | 0.19% | – | – | – | – | – | –
Average exchange rate | KRO/USD | – | – | – | – | – | 1,318.70 | – | –
| PHP/USD | – | – | – | – | – | 55.54 | – | –
| IDR/USD | – | – | – | – | – | 15,715.00 | – | –
| JPY/USD | – | 153.62 | – | – | – | – | – | –
Forward foreign |  |  |  |  |  |  |  |  |
exchange contracts |  |  |  |  |  |  |  |  |
Notional | $mill ion | 2,024 | 6,860 | – | – | 2,194 | 8,903 |  |
Average exchange rate | JPY/USD | 147.38 | 145.65 | – | – | 130.49 | 136.05 | – | –
Net investment hedges |  |  |  |  |  |  |  |  |
Foreign exchange |  |  |  |  |  |  |  |  |
derivat ives |  |  |  |  |  |  |  |  |
Notional | $mill ion | 3,222 | – | – | – | 3,339 | – | – | –
Average exchange rate | INR/USD | 84.07 | – | – | – | 82.91 | – | – | –
| AED/USD | 3.67 | – | – | – | 3.67 | – | – | –

Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
194
Directors’ Report and Financ
ial Statements 2024
14. Loans and advances to banks and customers
Accounting policy
Refer to Note 12 Financ
ial
instruments for the relevant accounting policy

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Loans and advances to banks | 22,949 | 22,821 | 11,757 | 10,141
Expected credit loss | (8) | (18) | (2) | (6)
| 22,941 | 22,803 | 11,755 | 10,135
Loans and advances to customers | 161,141 | 159,552 | 79,392 | 78,181
Expected credit loss | (2,899) | (3,409) | (1,795) | (2,298)
| 158,242 | 156,143 | 77,597 | 75,883
Total loans and advances to banks and customers 1 | 181,183 | 178,946 | 89,352 | 86,018

1
Includes $1.8 bill
ion (Bank Group) and $0.6 b
ill
ion (Bank Company) (31 December 2023: $2.2 b
ill
ion for Bank Group and Company) of assets pledged as collateral.
Analysis of loans and advances to customers by client segments and related impa
irment prov
is
ions as set out w
ith
in the
Risk review and Capital review (page 44 to 110).
15. Reverse repurchase and repurchase agreements includ
ing other s
im
ilar lend
ing and borrowing
Accounting policy
The Group purchases securit
ies (a reverse repurchase agreement – ‘reverse repo’) typ
ically with ﬁnanc
ial
inst
itut
ions subject
to a commitment to resell or return the securit
ies at a predeterm
ined price. These securit
ies are not
included in the balance
sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet as
collateral received. Considerat
ion pa
id (or cash collateral provided) is accounted for as a loan asset at amortised cost unless
it is managed on a fair value basis or designated at fair value through proﬁt or loss. In major
ity of cases through the
contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to
sell or repledge the asset concerned.
The Group also sells securit
ies (a repurchase agreement – ‘repo’) subject to a comm
itment to repurchase or redeem the
securit
ies at a predeterm
ined price. The securit
ies are reta
ined on the balance sheet as the Group retains substantially
all the risks and rewards of ownership and these securit
ies are d
isclosed as pledged collateral. Considerat
ion rece
ived
(or cash collateral received) is accounted for as a ﬁnanc
ial l
iab
il
ity at amortised cost unless it is either mandatorily classif
ied
as fair value through proﬁt or loss or irrevocably designated at fair value through proﬁt or loss at in
it
ial recognit
ion.
Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets sim
ilar
to those provided as collateral in the event of a default. Securit
ies sold subject to repos, e
ither by way of a Global Master
Repurchase Agreement (GMRA), or through a securit
ies sale and Total Return Swap (TRS) cont
inue to be recognised on the
balance sheet as the Group retains substantially the associated risks and rewards of the securit
ies (the TRS
is not recognised).
Assets sold under repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding.
15. Reverse repurchase and repurchase agreements includ
ing other s
im
ilar lend
ing and borrowing continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
195
Directors’ Report and Financ
ial Statements 2024
Reverse repurchase agreements and other sim
ilar secured lend
ing

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Banks | 30,581 | 27,706 | 26,389 | 23,965
Customers | 47,032 | 55,923 | 46,216 | 53,605
| 77,613 | 83,629 | 72,605 | 77,570
Of which: |  |  |  |
Fair value through proﬁt or loss | 65,603 | 68,149 | 62,141 | 64,804
Banks | 27,692 | 26,053 | 24,966 | 23,411
Customers | 37,911 | 42,096 | 37,175 | 41,393
Held at amortised cost | 12,010 | 15,480 | 10,464 | 12,766
Banks | 2,889 | 1,653 | 1,423 | 554
Customers | 9,121 | 13,827 | 9,041 | 12,212

Under reverse repurchase and securit
ies borrow
ing arrangements, the Group obtains securit
ies on terms wh
ich permit it to
repledge or resell the securit
ies to others. Amounts on such terms are:

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Securit ies and collateral rece ived (at fair value) | 81,108 | 87,153 | 75,641 | 80,899
Securit ies and collateral wh ich can be repledged or sold (at fair value) | 80,860 | 87,084 | 75,394 | 80,852
Amounts repledged/transferred to others for ﬁnancing act iv it ies, |  |  |  |
to satisfy liab il it ies under sale and repurchase agreements (at fa ir value) | 27,683 | 33,652 | 27,354 | 32,774

Repurchase agreements and other sim
ilar secured borrow
ing

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Banks | 8,416 | 4,968 | 8,139 | 4,824
Customers | 34,716 | 46,497 | 34,586 | 46,327
| 43,132 | 51,465 | 42,725 | 51,151
Of which: |  |  |  |
Fair value through proﬁt or loss | 33,211 | 39,432 | 32,880 | 39,174
Banks | 7,570 | 4,137 | 7,369 | 4,030
Customers | 25,641 | 35,295 | 25,511 | 35,144
Held at amortised cost | 9,921 | 12,033 | 9,845 | 11,977
Banks | 846 | 831 | 770 | 794
Customers | 9,075 | 11,202 | 9,075 | 11,183

15. Reverse repurchase and repurchase agreements includ
ing other s
im
ilar lend
ing and borrowing continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
196
Directors’ Report and Financ
ial Statements 2024
The tables below set out the ﬁnancial assets prov
ided as collateral for repurchase and other secured borrowing transactions:
Group

|  | Fair value |  |  |
| Fair value | through other |  |  |
| through proﬁt | comprehensive | Amortised | Off-balance |
| or loss | income | cost | sheet | Total
Collateral pledged against repurchase agreements | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
On-balance sheet |  |  |  |  |
Debt securit ies and other el ig ible b ills | 4,297 | 4,185 | 7,592 | – | 16,074
Off-balance sheet |  |  |  |  |
Repledged collateral received | – | – | – | 27,683 | 27,683
At 31 December 2024 | 4,297 | 4,185 | 7,592 | 27,683 | 43,757
On-balance sheet |  |  |  |  |
Debt securit ies and other el ig ible b ills | 4,069 | 7,312 | 10,181 | – | 21,562
Off-balance sheet |  |  |  |  |
Repledged collateral received | – | – | – | 33,652 | 33,652
At 31 December 2023 | 4,069 | 7,312 | 10,181 | 33,652 | 55,214

Company

|  | Fair value |  |  |
| Fair value | through other |  |  |
| through proﬁt | comprehensive | Amortised | Off-balance |
| or loss | income | cost | sheet | Total
Collateral pledged against repurchase agreements | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
On-balance sheet |  |  |  |  |
Debt securit ies and other el ig ible b ills | 4,296 | 4,159 | 7,542 | – | 15,997
Off-balance sheet |  |  |  |  |
Repledged collateral received | – | – | – | 27,354 | 27,354
At 31 December 2024 | 4,296 | 4,159 | 7,542 | 27,354 | 43,351
On-balance sheet |  |  |  |  |
Debt securit ies and other el ig ible b ills | 3,985 | 7,293 | 10,181 | – | 21,459
Off-balance sheet |  |  |  |  |
Repledged collateral received | – | – | – | 32,774 | 32,774
At 31 December 2023 | 3,985 | 7,293 | 10,181 | 32,774 | 54,233

Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
197
Directors’ Report and Financ
ial Statements 2024
16. Goodwill and intang
ible assets
Accounting policy
Goodwill
Goodwill on acquis
it
ions of subsid
iar
ies is included in intang
ible assets. Goodw
ill on acquis
it
ions of associates is included in
Investments in associates and jo
int ventures. Goodw
ill included in intang
ible assets
is assessed at each balance sheet date
for impa
irment and carr
ied at cost less any accumulated impa
irment losses. Ga
ins and losses on the disposal of an entity
include the carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting
expected cash ﬂows of the relevant cash generating units (CGUs) and discount
ing these at an appropr
iate discount rate, the
determinat
ion of wh
ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa
irment
testing. CGUs represent the lowest level with
in the Group wh
ich generate separate cash inﬂows and at which the goodwill
is monitored for internal management purposes. These are equal to or smaller than the Group’s reportable segments
(as set out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has
been allocated are set out in the CGU table (page 199).
Other accounting estimates and judgements
The carrying amount of goodwill is based on the applicat
ion of judgements
includ
ing the bas
is of goodwill impa
irment
calculation assumptions. Judgement is also applied in determinat
ion of CGUs.
Estimates include forecasts used for determin
ing cash ﬂows for CGUs, the appropr
iate long-term growth rates to use
and discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual
assessment to evaluate whether the carrying value of goodwill is impa
ired. The est
imat
ion of future cash ﬂows and the level
to which they are discounted is inherently uncertain and requires sign
iﬁcant judgement and
is subject to potential change
over time.
Acquired intang
ibles
At the date of acquis
it
ion of a subsid
iary or assoc
iate, intang
ible assets wh
ich are deemed separable and that arise
from contractual or other legal rights are capital
ised and
included with
in the net
ident
iﬁable assets acqu
ired. These
intang
ible assets are
in
it
ially measured at fair value, which reﬂects market expectations of the probabil
ity that the future
economic beneﬁts embodied in the asset will ﬂow to the entity and are amortised on the basis of their expected useful
lives (4 to 16 years). At each balance sheet date, these assets are assessed for ind
icators of
impa
irment. In the event that an
asset’s carrying amount is determined to be greater than its recoverable amount, the asset is written down immed
iately to
the recoverable amount.
Computer software
Acquired computer software licences are capital
ised on the bas
is of the costs incurred to acquire and bring to use the
specif
ic software.
Internally generated software represents substantially all of the total software capital
ised. D
irect costs of the development
of separately ident
iﬁable
internally generated software are capital
ised where
it is probable that future economic beneﬁts
attributable to the software will ﬂow from its use. These costs include staff remuneration costs such as salaries, statutory
payments and share-based payments, materials, service providers and contractors provided their time is directly attributable
to the software build. Costs incurred in the ongoing maintenance of software are expensed immed
iately when
incurred.
Internally generated software is amortised over each asset’s useful life to a maximum of 10-years. On an annual basis
software assets’ residual values and useful lives are reviewed, includ
ing assess
ing for ind
icators of
impa
irment. Ind
icators of
impa
irment
include loss of business relevance, obsolescence, exit of the business to which the software relates, technological
changes, change in use of the asset, reduction in useful life, plans to reduce usage or scope.
For capital
ised software that
is internally generated, judgement is required to determine which costs relate to research
(expensed) and which costs relate to development (capital
ised). Further judgement
is required to determine the technical
feasib
il
ity of completing the software such that it will be available for use. Estimates are used to determine how the software
will generate probable future economic beneﬁts: these estimates include cost savings, income increases, balance sheet
improvements, improved functional
ity or
improved asset safeguarding.
Software as a Service (SaaS) and sim
ilar cloud serv
ice models is a contractual arrangement that conveys the right to receive
access to the supplier’s software applicat
ion over the contract term. As such, the Group does not have control and as a result
recognises an operating expense for these costs over the contract term. Certain costs, includ
ing custom
isat
ion costs related
to implementat
ion of the SaaS may meet the deﬁnit
ion of an intang
ible asset
in their own right if it is separately ident
iﬁable
and control is established. These costs are capital
ised
if it is expected to provide the Group with future economic beneﬁts
ﬂowing from the underlying resource and the Group can restrict others from accessing those beneﬁts.
16. Goodwill and intang
ible assets cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
198
Directors’ Report and Financ
ial Statements 2024
Goodwill and intang
ible assets
Group

| 2024 | 2023
|  | Acquired | Computer |  |  | Acquired | Computer |
| Goodwill | intang ibles | software | Total | Goodwill | intang ibles | software | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cost |  |  |  |  |  |  |  |
At 1 January | 1,299 | 135 | 4,579 | 6,013 | 1,323 | 143 | 3,962 | 5,428
Exchange translation |  |  |  |  |  |  |  |
differences | (7) | 2 | (86) | (91) | (24) | (8) | 23 | (9)
Addit ions | – | – | 479 | 479 | – | – | 649 | 649
Impairment 1 | – | – | (467) | (467) | – | – | (50) | (50)
Amounts written off | – | (9) | (25) | (34) | – | – | (5) | (5)
At 31 December | 1,292 | 128 | 4,480 | 5,900 | 1,299 | 135 | 4,579 | 6,013
Provis ion for amort isat ion |  |  |  |  |  |  |  |
At 1 January | – | 115 | 1,688 | 1,803 | – | 119 | 1,257 | 1,376
Exchange translation |  |  |  |  |  |  |  |
differences | – | 4 | (32) | (28) | – | (8) | 6 | (2)
Amortisat ion | – | 3 | 455 | 458 | – | 4 | 440 | 444
Impairment charge 1 | – | – | (84) | (84) | – | – | (15) | (15)
Amounts written off | – | – | (23) | (23) | – | – | – | –
At 31 December | – | 122 | 2,004 | 2,126 | – | 115 | 1,688 | 1,803
Net book value | 1,292 | 6 | 2,476 | 3,774 | 1,299 | 20 | 2,891 | 4,210

1
During 2024, the Group performed a review of its computer software intang
ibles wh
ich were capital
ised as at 31 December 2023, and
impa
ired $338 m
ill
ion of the 2024
net book value due to lim
itat
ions in the available evidence to support the continued capital
isat
ion 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 intang
ibles to determ
ine instances
when the Group is no longer using certain applicat
ions
in its ongoing business and impa
ired $45 m
ill
ion. A total of $383 m
ill
ion
is recorded with
in
impa
irment to reﬂect
the above.
At 31 December 2024, accumulated goodwill impa
irment losses
incurred from 1 January 2005 amounted to $3,237 mill
ion
(31 December 2023: $3,237mill
ion), of wh
ich $nil was recognised in 2024 (31 December 2023: $nil).
Company

| 2024 | 2023
|  | Acquired | Computer |  |  | Acquired | Computer |
| Goodwill | intang ibles | software | Total | Goodwill | intang ibles | software | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cost |  |  |  |  |  |  |  |
At 1 January | 72 | 28 | 3,568 | 3,668 | 72 | 29 | 3,183 | 3,284
Exchange translation |  |  |  |  |  |  |  |
differences | – | (1) | (75) | (76) | – | (1) | 35 | 34
Addit ions | – | – | 246 | 246 | – | – | 378 | 378
Impairment 1 | – | – | (327) | (327) | – | – | (23) | (23)
Amounts written off | – | (10) | (13) | (23) | – | – | (5) | (5)
At 31 December | 72 | 17 | 3,399 | 3,488 | 72 | 28 | 3,568 | 3,668
Provis ion for amort isat ion |  |  |  |  |  |  |  |
At 1 January | – | 17 | 1,292 | 1,309 | – | 18 | 987 | 1,005
Exchange translation |  |  |  |  |  |  |  |
differences | – | (1) | (33) | (34) | – | (1) | 11 | 10
Amortisat ion | – | – | 305 | 305 | – | – | 302 | 302
Impairment charge 1 | – | – | (67) | (67) | – | – | (8) | (8)
Amounts written off | – | – | (13) | (13) | – | – | – | –
At 31 December | – | 16 | 1,484 | 1,500 | – | 17 | 1,292 | 1,309
Net book value | 72 | 1 | 1,915 | 1,988 | 72 | 11 | 2,276 | 2,359

1
During 2024, the Group performed a review of its computer software intang
ibles wh
ich were capital
ised as at 31 December 2023, and
impa
ired $238 m
ill
ion of the 2024
net book value due to lim
itat
ions in the available evidence to support the continued capital
isat
ion 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 intang
ibles to determ
ine instances
when the Group is no longer using certain applicat
ions
in its ongoing business and impa
ired $22 m
ill
ion. A total of $260 m
ill
ion
is recorded with
in
impa
irment to reﬂect
the above.
16. Goodwill and intang
ible assets cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
199
Directors’ Report and Financ
ial Statements 2024
Outcome of impa
irment assessment
An annual assessment is made as to whether the current carrying value of goodwill is impa
ired. For the purposes of
impa
irment test
ing, goodwill is allocated at the date of acquis
it
ion to a CGU. Goodwill is considered to be impa
ired
if the
carrying amount of the relevant CGU exceeds its recoverable amount. Indicators of impa
irment
include changes in the
economic performance and outlook of the region includ
ing geopol
it
ical changes, changes
in market value of regional
investments, large credit defaults and strategic decis
ions to ex
it certain regions. The recoverable amounts for all the CGUs
were measured based on value in use (VIU). The calculation of VIU for each CGU is calculated using ﬁve-year cashﬂow
projections and an est
imated terminal value based on a perpetuity value after year ﬁve. The cashﬂow project
ions are based
on forecasts approved by management up to 2029. The perpetuity terminal value amount is calculated using year ﬁve
cashﬂows using long-term GDP growth rates. All cashﬂows are discounted using discount rates which reﬂect market rates
appropriate to the CGU.
The cash ﬂows used as an input to the VIU calculations used in determin
ing whether goodw
ill allocated to CGUs should be
impa
ired were amended dur
ing 2024 to reﬂect changes to the basis on which business performance is monitored. There has
been no impact from the change estimated in the current period. It is impract
icable for the Group to est
imate the amount of
the effect of this change in future periods.
The goodwill allocated to each CGU and key assumptions used in determin
ing the recoverable amounts are set out below
and are solely estimates for the purposes of assessing impa
irment of acqu
ired goodwill.
Group

| 2024 | 2023
|  |  | Long-term |  |  | Long-term
|  | Pre Tax | forecast GDP |  | Pre Tax | forecast GDP
| Goodwill | Discount rates | growth rates | Goodwill | Discount rates | growth rates
Cash generating unit | $mill ion | per cent | per cent | $mill ion | per cent | per cent
Country CGUs |  |  |  |  |  |
Africa & Middle East | 65 |  |  | 65 |  |
Pakistan | 31 | 35.9 | 3.3 | 31 | 35.5 | 3.2
Bahrain | 34 | 12.4 | 0.8 | 34 | 12.4 | 0.5
Asia | 278 |  |  | 284 |  |
Singapore | 278 | 13.0 | 2.3 | 284 | 13.9 | 2.1
Global CGUs | 949 |  |  | 950 |  |
Wealth Management | 83 | 15.0 | 1.8 | 83 | 15.4 | 1.9
Corporate & Investment Banking | 866 | 15.5 | 2.3 | 867 | 16.1 | 2.3
| 1,292 |  |  | 1,299 |  |

In the current year, there are no CGUs for which any ind
iv
idual movement on key estimates (cashﬂow, discount rate and GDP
growth) would cause an impa
irment.
Company
Acquired intang
ibles pr
imar
ily compr
ise those recognised as part of the acquis
it
ions of American Express Bank, Tradewinds,
Australia and New Zealand Project Finance and Grindlays.
Sign
iﬁcant
items of goodwill aris
ing on acqu
is
it
ions have been allocated to the following cash generating units for the
purposes of impa
irment test
ing:

| 2024 | 2023
Cash generating unit | $mill ion | $mill ion
Country CGUs |  |
Bahrain | 17 | 17
Global CGUs |  |
Corporate & Investment Banking | 55 | 55
| 72 | 72

In the current year, there are no CGUs for which any ind
iv
idual movement on key estimates (cashﬂow, discount rate and GDP
growth) would cause an impa
irment.
Notes to the ﬁnancial statements cont
inued
16. Goodwill and intang
ible assets cont
inued
Standard Chartered Bank
200
Directors’ Report and Financ
ial Statements 2024
Acquired intang
ibles
This primar
ily compr
ises of the intellectual property acquired from Standard chartered Bank Hongkong Lim
ited.
The acquired intang
ibles are amort
ised over periods from four years to a maximum of 16 years. The constituents are as
follows:

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Acquired intang ibles compr ise: |  |  |  |
Brand names | 1 | – | 1 | –
Customer relationsh ips | – | 1 | – | 2
Licences | 5 | 19 | – | 10
Net book value | 6 | 20 | 1 | 12

17. Property, plant and equipment
Accounting policy
All property, plant and equipment is stated at cost less accumulated depreciat
ion and
impa
irment losses.
Land and build
ings compr
ise mainly branches and ofﬁces. Freehold land is not depreciated although it is subject to
impa
irment test
ing.
Depreciat
ion on other assets
is calculated using the straight-line method to allocate their cost to their residual values
over their estimated useful lives, as follows:
• Owned premises
up to 50 years
• Leasehold premises
up to 50 years
• Leasehold improvements
shorter of remain
ing lease term and 10 years
• Equipment and motor vehicles
three to 15 years
Where the Group is a lessee of a right-of-use asset, the leased assets are capital
ised and
included in Property, plant and
equipment with a corresponding liab
il
ity to the lessor recognised in Other liab
il
it
ies. The account
ing policy for lease assets
is set out in Note 18.
Group

| 2024
|  |  | Leased | Leased |
|  |  | premises | equipment |
| Premises | Equipment | assets | assets | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cost or valuation |  |  |  |  |
At 1 January | 532 | 477 | 900 | 6 | 1,915
Exchange translation differences | 5 | (7) | (20) | (2) | (24)
Addit ions | 91 1 | 106 1 | 112 | 27 1 | 336
Disposals and fully depreciated assets written off 2 | (17) | (28) | (1) | (1) | (47)
Other movements | (9) | – | – | – | (9)
As at 31 December | 602 | 548 | 991 | 30 | 2,171
Depreciat ion |  |  |  |  |
Accumulated at 1 January | 198 | 305 | 378 | 4 | 885
Exchange translation differences | (2) | 4 | (20) | (2) | (20)
Charge for the year | 29 | 59 | 101 | 9 | 198
Impairment charge | – | – | 2 | – | 2
Attributable to assets sold, transferred or written off 2 | (7) | (29) | (1) | (1) | (38)
Accumulated at 31 December | 218 | 339 | 460 | 10 | 1,027
Net book amount at 31 December | 384 | 209 | 531 | 20 | 1,144

1
Refer to the cash ﬂow statement under cash ﬂows from invest
ing act
iv
it
ies section for the purchase of property, plant and equipment during the year of $224 mill
ion
2
Disposals for property, plant and equipment during the year of $13 mill
ion
in the cash ﬂow statement would include the gains and losses incurred as part of other
operating income (Note 6) on disposal of assets during the year and the net book value disposed
Notes to the ﬁnancial statements cont
inued
17. Property, plant and equipment continued
Standard Chartered Bank
201
Directors’ Report and Financ
ial Statements 2024

| 2023
|  |  | Leased | Leased |
|  |  | premises | equipment |
| Premises | Equipment | assets | assets | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cost or valuation |  |  |  |  |
At 1 January | 549 | 519 | 780 | 7 | 1,855
Exchange translation differences | (24) | (18) | (3) | (1) | (46)
Addit ions | 25 1 | 75 1 | 124 | – | 224
Disposals and fully depreciated assets written off 2 | (33) | (99) | (1) | – | (133)
Transfers to assets held for sale | 15 | – | – | – | 15
As at 31 December | 532 | 477 | 900 | 6 | 1,915
Depreciat ion |  |  |  |  |
Accumulated at 1 January | 207 | 348 | 302 | 4 | 861
Exchange translation differences | (9) | (15) | (23) | (1) | (48)
Charge for the year | 30 | 71 | 101 | 1 | 203
Impairment (release)/charge | – | – | (1) | – | (1)
Attributable to assets sold, transferred or written off 2 | (31) | (98) | (1) | – | (130)
Transfers to assets held for sale | 1 | (1) | – | – | –
Accumulated at 31 December | 198 | 305 | 378 | 4 | 885
Net book amount at 31 December | 334 | 172 | 522 | 2 | 1,030

1
Refer to the cash ﬂow statement under cash ﬂows from invest
ing act
iv
it
ies section for the purchase of property, plant and equipment during the year of $100 mill
ion
2
Disposals for property, plant and equipment during the year of $15 mill
ion
in the cash ﬂow statement would include the gains and losses incurred as part of other
operating income (Note 6) on disposal of assets during the year and the net book value disposed
Company

| 2024
|  |  | Leased | Leased |
|  |  | premises | equipment |
| Premises | Equipment | assets | assets | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cost or valuation |  |  |  |  |
At 1 January | 200 | 303 | 486 | 1 | 990
Exchange translation differences | 11 | (10) | (8) | – | (7)
Addit ions | 58 1 | 91 1 | 72 | 27 1 | 248
Disposals and fully depreciated assets written off 2 | (11) | (7) | – | – | (18)
Other movements | (9) | – | – | – | (9)
As at 31 December | 249 | 377 | 550 | 28 | 1,204
Depreciat ion |  |  |  |  |
Accumulated at 1 January | 60 | 184 | 224 | 1 | 469
Exchange translation differences | (1) | (5) | (11) | – | (17)
Charge for the year | 6 | 41 | 41 | 9 | 97
Impairment charge | – | – | 2 | – | 2
Attributable to assets sold, transferred or written off 2 | – | (6) | – | – | (6)
Accumulated at 31 December | 65 | 214 | 256 | 10 | 545
Net book amount at 31 December | 184 | 163 | 294 | 18 | 659

1
Refer to the cash ﬂow statement under cash ﬂows from invest
ing act
iv
it
ies section for the purchase of property, plant and equipment during the year of $176 mill
ion
2
Disposals for property, plant and equipment during the year of $15 mill
ion
in the cash ﬂow statement would include the gains and losses incurred as part of other
operating income (Note 6) on disposal of assets during the year and the net book value disposed
17. Property, plant and equipment continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
202
Directors’ Report and Financ
ial Statements 2024

| 2023
|  |  | Leased | Leased |
|  |  | premises | equipment |
| Premises | Equipment | assets | assets | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Cost or valuation |  |  |  |  |
At 1 January | 205 | 311 | 377 | 1 | 894
Exchange translation differences | (2) | (2) | (3) | – | (7)
Addit ions | 7 1 | 46 1 | 112 | – | 165
Disposals and fully depreciated assets written off 2 | (27) | (52) | – | – | (79)
Transfers to assets held for sale | 17 | – | – | – | 17
As at 31 December | 200 | 303 | 486 | 1 | 990
Accumulated at 1 January | 75 | 191 | 197 | 1 | 464
Exchange translation differences | – | – | (15) | – | (15)
Charge for the year | 9 | 45 | 43 | – | 97
Impairment (release)/charge | – | – | (1) | – | (1)
Attributable to assets sold, transferred or written off 2 | (26) | (52) | – | – | (78)
Transfers to assets held for sale | 2 | – | – | – | 2
Accumulated at 31 December | 60 | 184 | 224 | 1 | 469
Net book amount at 31 December | 140 | 119 | 262 | – | 521

1
Refer to the cash ﬂow statement under cash ﬂows from invest
ing act
iv
it
ies section for the purchase of property, plant and equipment during the year of $53 mill
ion
2
Disposals for property, plant and equipment during the year of $1 mill
ion
in the cash ﬂow statement would include the gains and losses incurred as part of other
operating income (Note 6) on disposal of assets during the year and the net book value disposed
18. Leased assets
Accounting policy
Where the Group is a lessee and the lease is deemed in scope of IFRS 16, it recognises a liab
il
ity equal to the present value
of lease payments over the lease term, discounted using the incremental borrowing rate applicable in the economic
environment of the lease. The liab
il
ity is recognised in ‘Other liab
il
it
ies’. A correspond
ing right-of-use asset equal to the liab
il
ity,
adjusted for any lease payments made at or before the commencement date, is recognised in ‘Property, plant and
equipment’. The lease term includes any extension options contained in the contract that the Group is reasonably certain it
will exercise.
The Group subsequently depreciates the right-of-use asset using the straight-line method over the lease term and measures
the lease liab
il
ity using the effective interest method. Depreciat
ion on the asset
is recognised in ‘Depreciat
ion and
amortisat
ion’, and
interest on the lease liab
il
ity is recognised in ‘Interest expense’.
If a leased premise, or a physically dist
inct port
ion of a premise such as an ind
iv
idual ﬂoor, is deemed by management to be
surplus to the Group’s needs and action has been taken to abandon the space before the lease expires, this is considered an
ind
icator of
impa
irment. An
impa
irment loss
is recognised if the right-of-use asset, or portion thereof, has a carrying value in
excess of its value-in-use when taking into account factors such as the abil
ity and l
ikel
ihood of obta
in
ing a subtenant.
The key judgement in determin
ing lease balances
is the determinat
ion of the lease term,
in particular whether the Group is
reasonably certain that it will exercise extension options present in lease contracts. On in
it
ial recognit
ion, the Group cons
iders
a range of characterist
ics such as prem
ises function, regional trends and the term remain
ing on the lease to determ
ine
whether it is reasonably certain that a contractual right to extend a lease will be exercised. When there are changes to
assumptions the lease balances are remeasured.
The estimates involved are the determinat
ion of
incremental borrowing rates in the respective economic environments.
The Group uses third-party broker quotes to estimate its USD cost of senior unsecured borrowing, then uses cross currency
swap pric
ing
informat
ion to determ
ine the equivalent cost of borrowing in other currencies. If it is not possible to estimate
an incremental borrowing rate through this process, other proxies such as local government bond yields are used.
The Group primar
ily enters lease contracts that grant
it the right to use premises such as ofﬁce build
ings and reta
il branches.
Exist
ing lease l
iab
il
it
ies may change
in future periods due to changes in assumptions or decis
ions to exerc
ise lease renewal or
terminat
ion opt
ions, changes in payments due to renegotiat
ions of market rental rates as perm
itted by those contracts and
changes to payments due to rent being contractually linked to an inﬂat
ion
index. In general the re-measurement of a lease
liab
il
ity under these circumstances leads to an equal change to the right-of-use asset balance, with no immed
iate effect on
the income statement.
The total cash outﬂow during the year for premises and equipment leases was $133 mill
ion for Group and $62 m
ill
ion for Company.
18. Leased assets continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
203
Directors’ Report and Financ
ial Statements 2024
The total expense during the year in respect of leases with a term less than or equal to 12 months nil for Group.
The right-of-use asset balances and depreciat
ion charges are d
isclosed in Note 17. The lease liab
il
ity balances are disclosed
in Note 22 and the interest expense on lease liab
il
it
ies
is disclosed in Note 3.
Maturity analysis
The maturity proﬁle for lease liab
il
it
ies assoc
iated with leased premises and equipment assets is as follows:
Group

| 2024 | 2023
|  |  | Between |  |  |  | Between | Between |  |
|  | Between one | two years |  |  |  | one year | two years |  |
| One year or | year and | and ﬁve | More than |  |  | and two | and ﬁve | More than |
| less | two years | years | ﬁve years | Total | One year or | years | years | ﬁve years | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | less $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Other liab il it ies |  |  |  |  |  |  |  |  |  |
– lease |  |  |  |  |  |  |  |  |  |
liab il it ies | 135 | 109 | 215 | 327 | 786 | 123 | 103 | 208 | 308 | 742

Company

| 2024 | 2023
|  |  | Between |  |  |  | Between | Between |  |
|  | Between one | two years |  |  |  | one year | two years |  |
| One year or | year and | and ﬁve | More than |  |  | and two | and ﬁve | More than |
| less | two years | years | ﬁve years | Total | One year or | years | years | ﬁve years | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | less $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Other liab il it ies |  |  |  |  |  |  |  |  |  |
– lease |  |  |  |  |  |  |  |  |  |
liab il it ies | 71 | 50 | 101 | 235 | 457 | 60 | 48 | 89 | 201 | 398

19. Other assets
Group

| 2024 | 2023
Other assets include: | $mill ion | $mill ion
Financ ial assets held at amort ized cost (Note 12): |  |
Cash collateral 1 | 9,181 | 8,378
Acceptances and endorsements | 4,149 | 3,967
Unsettled trades and other ﬁnancial assets | 8,205 | 8,369
| 21,535 | 20,714
Non-ﬁnancial assets: |  |
Commodit ies and em iss ions cert if icate 2 | 6,570 | 7,405
Other assets | 373 | 388
| 28,478 | 28,507

1
Cash collateral are margins placed to collateralize net derivat
ive mark-to-market (MTM) pos
it
ions
2
Physically held commodit
ies and em
iss
ion cert
if
icates are
inventory that is carried at fair value less costs to sell, $3.8 bill
ion (31 December 2023: $3.6 b
ill
ion) are class
if
ied
as Level 1 and $2.7 bill
ion are class
if
ied as Level 2 (31 December 2023: $3.8 b
ill
ion). For commod
it
ies, the fa
ir value is derived from observable spot or short-term futures
prices from relevant exchanges.
Company
Other assets include:

| 2024 | 2023
| $mill ion | $mill ion
Financ ial assets held at amort ised cost (Note 12): |  |
Cash collateral 1 | 8,196 | 7,505
Acceptances and endorsements | 2,320 | 2,315
Unsettled trades and other ﬁnancial assets | 7,071 | 7,170
| 17,587 | 16,990
Non-ﬁnancial assets: |  |
Commodit ies 2 | 3,743 | 4,485
Other assets | 222 | 267
| 21,552 | 21,742

1
Cash collateral are margins placed to collateralize net derivat
ive mark-to-market (MTM) pos
it
ions
2
Commodit
ies and em
iss
ions cert
if
icates are carr
ied at fair value less costs to sell, $3 bill
ion (31 December 2023: $3.2 b
ill
ion) are class
if
ied as Level 1 and $0.7 b
ill
ion are
classif
ied as Level 2 (31 December 2023: $1.2 b
ill
ion).
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
204
Directors’ Report and Financ
ial Statements 2024
20. Assets held for sale and associated liab
il
it
ies
Accounting policy
Upon reclassif
icat
ion property, plant and equipment are measured at the lower of their carrying amount and fair value less
costs to sell. Financ
ial
instruments continue to be measured per the accounting polic
ies
in Note 13 Financ
ial
instruments.
The assets below have been presented as held for sale following the approval of Group management and the transactions
are expected to complete in 2025.
Group
Assets held for sale
The ﬁnancial assets reported below are class
if
ied under Level 1 $58 m
ill
ion (31 December 2023: $101 m
ill
ion),
Level 2 $335 mill
ion (31 December 2023: $541 m
ill
ion) and Level 3 $473 m
ill
ion (31 December 2023: $51 m
ill
ion).

| 2024 | 2023
Assets held for sale | $mill ion | $mill ion
Financ ial assets held at amort ised cost | 866 | 693
Cash and balances at central banks | 109 | 246
Loans and advances to banks | – | 24
Loans and advances to customers | 656¹ | 243
Debt securit ies held at amort ised cost | 101 | 180
Property, plant and equipment | 8 | 12
Others | 8 | 12
Others | 27 | 50
| 901 | 755

1
Includes $414 mill
ion unsecured personal loan bus
iness from SC Bank India which was disposed on 23 January 2025 for a considerat
ion of INR 32 b
ill
ion ($375 m
ill
ion)
Liab
il
it
ies held for sale
The ﬁnancial l
iab
il
it
ies reported below are class
if
ied under Level 1 $89 m
ill
ion (31 December 2023: $54 m
ill
ion)
and Level 2 $271 mill
ion (31 December 2023: $672 m
ill
ion).

| 2024 | 2023
Liab il it ies held for sale | $mill ion | $mill ion
Financ ial l iab il it ies held at amort ised cost | 360 | 726
Deposits by banks | – | 3
Customer accounts | 360 | 723
Other liab il it ies | 16 | 50
Provis ions for l iab il it ies and charges | 5 | 11
| 381 | 787

Company
Assets held for sale
The ﬁnancial assets reported below are class
if
ied under Level 1 n
il (31 December 2023: nil), Level 2 nil (31 December 2023: nil)
and Level 3 $474 mill
ion (31 December 2023: $52 m
ill
ion).

| 2024 | 2023
Assets held for sale | $mill ion | $mill ion
Financ ial assets held at amort ised cost | 474 | 52
Loans and advances to customers | 474 | 52
Others | – | 16
| 474 | 68

20. Assets held for sale and associated liab
il
it
ies cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
205
Directors’ Report and Financ
ial Statements 2024
Liab
il
it
ies held for sale
The ﬁnancial l
iab
il
it
ies reported below are class
if
ied under Level 1 n
il (31 December 2023: nil), Level 2 nil
(31 December 2023: nil), Level 3 nil (31 December 2023: $5 mill
ion)

| 2024 | 2023
Liab il it ies held for sale | $mill ion | $mill ion
Other liab il it ies | – | 5
| – | 5

21. Debt securit
ies
in issue
Accounting policy
Refer to Note 12 Financ
ial
instruments for the relevant accounting policy.
Group

| 2024 | 2023
| Certif icates of |  |  | Certif icates of |  |
| deposit of | Other debt |  | deposit of | Other debt |
| $100,000 or | securit ies in |  | $100,000 or | securit ies in |
| more | issue | Total | more | issue | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Debt securit ies in issue | 17,606 | 22,258 | 39,864 | 13,833 | 22,648 | 36,481
Debt securit ies in issue included with in: |  |  |  |  |  |
Financ ial l iab il it ies held at fa ir value through |  |  |  |  |  |
proﬁt or loss (Note 12) | – | 12,176 | 12,176 | – | 9,850 | 9,850
Total debt securit ies in issue | 17,606 | 34,434 | 52,040 | 13,833 | 32,498 | 46,331

Company

| 2024 | 2023
| Certif icates of |  |  | Certif icates of |  |
| deposit of | Other debt |  | deposit of | Other debt |
| $100,000 or | securit ies in |  | $100,000 or | securit ies in |
| more | issue | Total | more | issue | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Debt securit ies in issue | 17,457 | 18,624 | 36,081 | 13,733 | 21,007 | 34,740
Debt securit ies in issue included with in: |  |  |  |  |  |
Financ ial l iab il it ies held at fa ir value through |  |  |  |  |  |
proﬁt or loss (Note 12) | – | 12,062 | 12,062 | – | 9,554 | 9,554
Total debt securit ies in issue | 17,457 | 30,686 | 48,143 | 13,733 | 30,561 | 44,294

In 2024, the Company issued a total of $2.5 bill
ion sen
ior notes for general business purposes of the Group as shown below:

Securit ies | $mill ion
USD 1,000 mill ion callable ﬁxed rate sen ior notes due 2028 (callable 2027) | 1,000
USD 1500 mill ion callable ﬁxed rate sen ior notes due 2035 (callable 2034) | 1,500
Total Senior Notes issued | 2,500

In 2023, the Company issued a total of $2.9 bill
ion sen
ior notes for general business purposes of the Group as shown below :

Securit ies | $mill ion
USD 1,500 mill ion callable ﬁxed rate sen ior notes due 2029 (callable 2028) | 1,500
USD 750 mill ion callable ﬁxed rate sen ior notes due 2028 (callable 2027) | 750
USD 653 mill ion callable ﬁxed rate sen ior notes due 2030 (callable 2029) | 653
Total Senior Notes issued | 2,903

Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
206
Directors’ Report and Financ
ial Statements 2024
22. Other liab
il
it
ies
Accounting policy
Refer to Note 12 Financ
ial
instruments for the relevant accounting policy for ﬁnanc
ial l
iab
il
it
ies, Note 18 Leased assets
for the accounting policy for leases
Group

| 2024 | 2023
| $mill ion | $mill ion
Financ ial l iab il it ies held at amort ized cost (Note 12) |  |
Acceptances and endorsements | 4,149 | 4,026
Cash collateral | 12,984 | 7,960
Property leases | 603 | 593
Equipment leases | 14 | 1
Unsettled trades and other ﬁnancial l iab il it ies | 9,600 | 11,529
| 27,350 | 24,109
Non-ﬁnancial l iab il it ies |  |
Other liab il it ies | 417 | 368
| 27,767 | 24,477

Company

| 2024 | 2023
| $mill ion | $mill ion
Financ ial l iab il it ies held at amort ised cost (Note 12) |  |
Acceptances and endorsements | 2,321 | 2,315
Cash collateral 1 | 11,788 | 7,289
Property leases | 327 | 295
Equipment leases | 13 | –
Unsettled trades and other ﬁnancial l iab il it ies | 6,675 | 8,980
| 21,124 | 18,879
Non-ﬁnancial l iab il it ies |  |
Other liab il it ies | 362 | 334
| 21,486 | 19,213

1
Cash collateral are margins received against collateralize net derivat
ive mark-to-market (MTM) pos
it
ions
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
207
Directors’ Report and Financ
ial Statements 2024
23. Provis
ions for l
iab
il
it
ies and charges
Accounting policy
The recognit
ion and measurement of prov
is
ions for l
iab
il
it
ies and charges requ
ires sign
iﬁcant judgement and the use of
estimates about uncertain future condit
ions or events.
Estimates include the best estimate of the probabil
ity of outﬂow of econom
ic resources, cost of settling a provis
ion and
tim
ing of settlement. Judgements are requ
ired for inherently uncertain areas such as legal decis
ions (
includ
ing external
advice obtained), and outcome of regulator reviews.
Group

| 2024 | 2023
| Provis ion for |  |  | Provis ion for |  |
| credit | Other |  | credit | Other |
| commitments 1 | provis ions 2 | Total | commitments¹ | provis ions² | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 1 January | 180 | 55 | 235 | 251 | 84 | 335
Exchange translation differences | 10 | (3) | 7 | (8) | 4 | (4)
Charge/(release) against proﬁt | 18 | 14 | 32 | (63) | 15 | (48)
Provis ions ut il ised | – | (25) | (25) | – | (45) | (45)
Transfer 3 | – | 12 | 12 | – | (3) | (3)
At 31 December | 208 | 53 | 261 | 180 | 55 | 235

Company

| 2024 | 2023
| Provis ion for |  |  | Provis ion for |  |
| credit | Other |  | credit | Other |
| commitments 1 | provis ions 2 | Total | commitments¹ | provis ions² | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 1 January | 132 | 39 | 171 | 183 | 66 | 249
Exchange translation differences | (2) | (1) | (3) | (2) | – | (2)
Charge/(release) against proﬁt | 18 | (5) | 13 | (49) | (4) | (53)
ions ut Provis il ised | – | (2) | (2) | – | (20) | (20)
Transfer 3 | – | 7 | 7 | – | (3) | (3)
At 31 December | 148 | 38 | 186 | 132 | 39 | 171

1
Expected credit loss for credit commitment comprises those undrawn contractually committed facil
it
ies where there is doubt as to the borrowers’ abil
ity to meet the
ir
repayment obligat
ions
2
Other provis
ions cons
ist mainly of provis
ions for legal cla
ims and regulatory and enforcement invest
igat
ions and proceedings
3
Includes the provis
ions transferred to held for sale
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
208
Directors’ Report and Financ
ial Statements 2024
24. Contingent liab
il
it
ies and comm
itments
Accounting policy
Financ
ial guarantee contracts and loan comm
itments
Financ
ial guarantee contracts and any loan comm
itments issued at below-market interest rates are in
it
ially recognised at
their fair value as a ﬁnanc
ial l
iab
il
ity, and subsequently measured at the higher of the in
it
ial value less the cumulative amount
of income recognised and their expected credit loss provis
ion. Loan comm
itments may be designated at fair value through
proﬁt or loss where that is the business model under which such contracts are held. Notional values of ﬁnanc
ial guarantee
contracts and loan commitments are disclosed in the table below.
Financ
ial guarantees, trade cred
its and irrevocable letters of credit are the notional values of contracts issued by the Group’s
Transaction Banking business for which an obligat
ion to make a payment has not ar
isen at the reporting date. Transaction
Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not paid,
the Group will reimburse the holder of the contract for the actual ﬁnanc
ial loss suffered. These contracts have var
ious legal
forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facil
itate trade
through export and import business, provide guarantees to ﬁnanc
ial
inst
itut
ions where the Group has a local presence,
as well as guaranteeing project ﬁnanc
ing
involv
ing large construct
ion projects undertaken by sovereigns and corporates.
The contracts may contain performance clauses which require the counterparty performing services or provid
ing goods to
meet certain condit
ions before a r
ight to payment is achieved, however the Group does not guarantee this performance.
The Group will only guarantee the credit of the counterparty paying for the services or goods.
Commitments are where the Group has conﬁrmed its intent
ion to prov
ide funds to a customer or on behalf of a customer
under prespecif
ied terms and cond
it
ions
in the form of loans, overdrafts, future guarantees whether cancellable or not and
the Group has not made payments at the balance sheet date; those instruments are included in these ﬁnanc
ial statements
as commitments. Commitments and contingent liab
il
it
ies are generally cons
idered on demand as the Group may have to
honour them, or the client may draw down at any time.
Capital commitments are contractual commitments the Group has entered into to purchase non-ﬁnanc
ial assets.
The table below shows the contract or underlying princ
ipal amounts of unmatured off-balance sheet transact
ions at the
balance sheet date. The contract or underlying princ
ipal amounts
ind
icate the volume of bus
iness outstanding and do not
represent amounts at risk.

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Financ ial guarantees and trade cred its |  |  |  |
Financ ial guarantees, trade and irrevocable letters of credit | 81,343 | 60,707 | 69,038 | 49,586
| 81,343 | 60,707 | 69,038 | 49,586
Commitments |  |  |  |
Undrawn formal standby facil it ies, credit lines and other commitments to lend |  |  |  |
One year and over | 60,968 | 62,083 | 45,406 | 48,719
Less than one year | 20,396 | 17,895 | 17,079 | 14,113
Uncondit ionally cancellable | 42,567 | 37,921 | 6,808 | 6,175
| 123,931 | 117,899 | 69,293 | 69,007

| Group | Company
| 2024 | 2023 | 2024 | 2023
Capital commitments | $mill ion | $mill ion | $mill ion | $mill ion
Contracted capital expenditure approved by the directors but not provided |  |  |  |
for in these accounts | 121 | 215 | – | –

24. Contingent liab
il
it
ies and comm
itments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
209
Directors’ Report and Financ
ial Statements 2024
The table below shows the contract or underlying princ
ipal amounts and r
isk-weighted amounts of unmatured Group
off-balance sheet transactions at the balance sheet date. The contract or underlying princ
ipal amounts
ind
icate the volume
of business outstanding and do not represent amounts at risk.

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Financ ial guarantees and other cont ingent liab il it ies(Group) |  |  |  |
Financ ial guarantees, trade and irrevocable letters of credit | 3,771 | 3,031 | 11,790 | 12,017
Other contingent liab il it ies | – | – | – | –
| 3,771 | 3,031 | 11,790 | 12,017
Commitments(Group) |  |  |  |
Undrawn commitments | 1,243 | 1,504 | 1,613 | 1,916
| 1,243 | 1,504 | 1,613 | 1,916

Please refer to Note 19 for further details. As set out in Note 25, the Group has contingent liab
il
it
ies
in respect of certain legal
and regulatory matters for which it is not practicable to estimate the ﬁnanc
ial
impact as there are many factors that may
affect the range of possible outcomes.
25. Legal and regulatory matters
Accounting policy
Where appropriate, the Group recognises a provis
ion for l
iab
il
it
ies when
it is probable that an outﬂow of economic
resources embodying economic beneﬁts will be required, and for which a reliable estimate can be made of the obligat
ion.
The uncertaint
ies
inherent in legal and regulatory matters affect the amount and tim
ing of any potent
ial outﬂows with
respect to which provis
ions have been establ
ished. These uncertaint
ies also mean that
it is not possible to give an aggregate
estimate of contingent liab
il
it
ies ar
is
ing from such legal and regulatory matters.
The Group receives legal claims against it in a number of jur
isd
ict
ions and
is subject to regulatory and enforcement
invest
igat
ions and proceedings from time to time. Apart from the matters described below, the Group currently considers
none of the ongoing claims, invest
igat
ions or proceedings to be ind
iv
idually material. However, in light of the uncertaint
ies
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 PLC Group has been named as a defendant in a series of lawsuits that have been ﬁled in the United States
Distr
ict Courts for the Southern and Eastern D
istr
icts of New York aga
inst a number of banks (includ
ing Standard Chartered
or its afﬁl
iates) on behalf of pla
int
iffs who are, or are relat
ives of, vict
ims of attacks
in Iraq, Afghanistan and Israel. The
plaint
iffs
in each of these lawsuits have alleged that the defendant banks aided and abetted the unlawful conduct of parties
with connections to terrorist organisat
ions
in breach of the United States Anti-Terrorism Act. None of these lawsuits specify
the amount of damages claimed. The PLC Group continues to defend these lawsuits.
In January 2020, a shareholder derivat
ive compla
int was ﬁled by the City of Philadelph
ia
in New York State Court against
45 current and former directors and senior ofﬁcers of the PLC Group. It is alleged that the ind
iv
iduals breached their duties
to the PLC Group and caused a waste of corporate assets by permitt
ing the conduct that gave r
ise to the costs and losses to
the PLC 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 dism
iss the compla
int. The plaint
iffs are pursu
ing an appeal against the February 2022
ruling. A hearing date for the plaint
iffs' appeal
is awaited.
Bernard Madoff’s 2008 confession to running a Ponzi scheme through Bernard L. Madoff Investment Securit
ies LLC (BMIS)
gave rise to a number of lawsuits against the PLC Group. BMIS and the Fairf
ield funds (wh
ich invested in BMIS) are in
bankruptcy and liqu
idat
ion, respectively. Between 2010 and 2012, ﬁve lawsuits were brought against the PLC Group by the
BMIS bankruptcy trustee and the Fairf
ield funds’ l
iqu
idators,
in each case seeking to recover funds paid to the PLC Group’s
clients pursuant to redemption requests made prior to BMIS’ bankruptcy ﬁl
ing. The total amount sought
in these cases
exceeds USD 300 mill
ion, exclud
ing any pre-judgment interest that may be awarded. Three of the four lawsuits commenced
by the Fairf
ield funds’ l
iqu
idators have been d
ism
issed and the appeals of those d
ism
issals by the funds’ l
iqu
idators are
ongoing. The fourth lawsuit has been dism
issed and
is not the subject of any further appeal. The PLC Group continues to
defend the lawsuit brought by the BMIS bankruptcy trustee.
The Group has concluded that the threshold for recording provis
ions pursuant to IAS 37 Prov
is
ions, Cont
ingent Liab
il
it
ies and
Contingent Assets is not met with respect to the above matters; however, the outcomes of these lawsuits are inherently
uncertain and diff
icult to pred
ict.
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
210
Directors’ Report and Financ
ial Statements 2024
26. Subordinated liab
il
it
ies and other borrowed funds

| 2024 | 2023
| $mill ion | $mill ion
Subordinated loan capital – issued by subsid iary undertak ings |  |
NPR 2.4 bill ion ﬁxed sub debt rate 10.3 percent 2 | 18 | 18
$540 mill ion ﬂoat ing rate subordinated notes due 2030 (callable 2025) 1 | 540 | 540
| 558 | 558
Subordinated loan capital – issued by the Company |  |
$700 mill ion 8.0 per cent subord inated notes due 2031 | 326 | 342
$500 mill ion 4.96 per cent ﬁxed rate subord inated notes due 2043 | 410 | 414
$2 bill ion 4.57 per cent ﬁxed rate subord inated notes due 2044 (callable 2039) | 1,849 | 1,856
$250 mill ion 4.82 per cent ﬁxed rate subord inated notes due 2048 (callable 2043) | 250 | 250
$1 bill ion 2.94 per cent ﬁxed rate subord inated notes due 2029 (callable 2024) | – | 999
$1.25 bill ion ﬂoat ing rate subordinated notes due 2032 (callable 2027) | 1,250 | 1,250
$1 bill ion 3.516 per cent ﬁxed rate reset subord inated debt due 2030 (callable 2025) | 996 | 965
£504 mill ion 6.1368 per cent ﬁxed rate subord inated notes due 2043 (callable 2038) | 624 | 689
$2 bill ion 5.3 per cent ﬁxed rate reset subord inated notes due 2035 (callable 2030) | 1,782 | 1,764
£527 mill ion ﬂoat ing rate subordinated notes due 2039 (callable 2034) | 660 | 671
€1 bill ion 2.5 per cent ﬁxed rate reset subord inated notes due 2030 (callable 2025) | 1,020 | 1,048
$750 mill ion 3.603 per cent ﬁxed rate reset subord inated notes due 2033 (callable 2032) | 634 | 648
| 9,801 | 10,896
Total for Group | 10,359 | 11,454

1
Issued by Standard Chartered Bank Singapore Lim
ited
2
Issued by Standard Chartered Bank Nepal Lim
ited. NPR refers to Nepalese Rupee

| 2024 | 2023
| $mill ion | $mill ion
USD | 8,037 | 9,028
GBP | 1,284 | 1,360
EUR | 1,020 | 1,048
NPR | 18 | 18
Total | 10,359 | 11,454

Redemptions and repurchases during the year
Standard Chartered Bank exercised its right to redeem USD 1 bill
ion 2.94 per cent ﬁxed rate subord
inated notes 2029.
Issuances during the year
There was no issuance during the period.
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
211
Directors’ Report and Financ
ial Statements 2024
27. Share capital, other equity instruments and reserves
Accounting policy
Securit
ies wh
ich carry a discret
ionary coupon and have no ﬁxed matur
ity or redemption date are classif
ied as other equ
ity
instruments. Interest payments on these securit
ies are recogn
ised, net of tax, as distr
ibut
ions from equity in the period in
which they are paid.
Where the Company or other members of the consolidated Group purchase the Company’s equity share capital, the
considerat
ion pa
id is deducted from the total shareholders’ equity of the Group and/or of the Company as treasury shares
until they are cancelled. Where such shares are subsequently sold or reissued, any considerat
ion rece
ived is included in
shareholders’ equity of the Group and/or the Company.
Group and Company

|  |  |  |  | Total share |
| Number of |  | Ordinary | Preference | capital and |
| ordinary | Ordinary | share | share | share | Other equity
| shares | share capital 1 | premium | premium | premium | instruments
| mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 1 January 2023 | 20,597 | 20,597 | 296 | 1,500 | 22,393 | 4,750
Cancellation of shares includ ing share buy-back | – | – | – | (750) | (750) | –
Addit ional T ier 1 equity issuance | – | – | – | – | – | 992
Addit ional T ier 1 redemption | – | – | – | – | – | (1,000)
At 31 December 2023 | 20,597 | 20,597 | 296 | 750² | 21,643 | 4,742
Addit ional T ier 1 equity issuance | – | – | – | – | – | 980
At 31 December 2024 | 20,597 | 20,597 | 296 | 750² | 21,643 | 5,722

1
Issued and fully paid ordinary shares of $1 each
2
Includes preference share capital of $37,500
Ordinary share capital
The authorised share capital of the Company at 31 December 2024 was $ 26,789 mill
ion and TWD 1,225 m
ill
ion
(31 December 2023: $ 26,789 mill
ion and TWD 1,225 m
ill
ion) made up of 26,782 m
ill
ion ord
inary shares of $1 each,
2.4 mill
ion non-cumulat
ive irredeemable preference shares of $0.01 each, 1 mill
ion non-cumulat
ive preference shares of
$5 each, 15,000 non-cumulative redeemable preference shares of $5 each, 462,500 non-cumulative redeemable 8.125%
preference shares of $5 each and 50 mill
ion non-cumulat
ive redeemable preference shares of TWD24.50 each.
The issued share capital of the Company at 31 December 2024 was $20,597 mill
ion (31 December 2023: $20,597 m
ill
ion)
made up of: 20,597 mill
ion ord
inary shares of $1 each.
There was no new issue of shares during the year. The Company has one class of ordinary shares, which carries no rights
to ﬁxed income. Subject to any special rights or restrict
ions as to vot
ing attached to any shares in accordance with the
Company’s Royal Charter Bye-Laws and Rules, on a show of hands every member present at a general meeting by a
representative or proxy shall have one vote. On a poll, every member holding shares or stock of less than the nominal amount
of US$25 shall not have any vote, but every other member who is present in person or by proxy shall have votes in accordance
with the following scale:

| Number of
Nominal amount of Shares or Stock held | Votes
US$25 or more but less than US$50 | 1 vote
US$50 or more but less than US$100 | 2 votes
US$100 or more but less than US$250 | 3 votes
US$250 or more but less than US$375 | 4 votes
US$375 or more but less than US$500 | 5 votes
US$500 or more but less than US$750 | 6 votes
US$750 or more but less than US$1,000 | 7 votes
US$1,000 or more but less than US$1,250 | 8 votes
US$1,250 or more but less than US$1,500 | 9 votes
US$1,500 or more | 10 votes

27. Share capital, other equity instruments and reserves continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
212
Directors’ Report and Financ
ial Statements 2024
Preference share capital
7,500 non-cumulative redeemable preference shares issued on 8 December 2006 with a nominal value of $5 each and 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 in whole or in part on 31 Jan 2027 and on any quarterly div
idend payment date fall
ing on or
around ten-year intervals thereafter. The amount payable on redemption will be the paid-up amount of $100,000 per
preference share to be redeemed, plus an amount equal to the accrued but unpaid div
idend thereon up to but exclud
ing
the redemption date.
Other equity instruments
The table provides details of outstanding Fixed Rate Resetting Perpetual Subordinated Contingent Convertible AT1 securit
ies
issued by Standard Chartered Bank. All issuances are made for general business purposes and to increase the regulatory
capital base of the Group.

|  | Proceeds net of issue |  |  |
Issuance date | Nominal value | costs | Interest rate 1 | Coupon payment dates 2 | First reset dates 3
14 January 2021 | USD 1,250 mill ion | USD 1,250 mill ion | 4.75% | 14 January, 14 July each year | 14 July 2031
19 August 2021 | USD 1,500 mill ion | USD 1,500 mill ion | 4.30% | 19 February, 19 August each year | 19 August 2028
15 August 2022 | USD 1,000 mill ion | USD 1,000 mill ion | 7.75% | 15 February, 15 August each year | 15 February 2028
31 March 2023 | USD 750 mill ion | USD 750 mill ion | 7.75% | 30 January, 30 July each year | 30 July 3037
31 March 2023 | GBP 96 mill ion | USD 120 mill ion | 7.90% | 4 April, 4 October each year | 4 April 2028
31 March 2023 | GBP 99 mill ion | USD 122 mill ion | 7.90% | 4 April, 4 October each year | 4 April 2028
27 March 2024 | USD400 mill ion | USD 400 mill ion | 7.875% | 8 March, 8 September each year | 8 September 2030
19 Sep 2024 | SGD750 mill ion | USD 580 mill ion | 5.30% | 19 March, 19 September each year | 19 March 2030
| Total | USD 5,722 mill ion |  |  |

1
Interest rates for the period from (and includ
ing) the
issue date to (but excluding) the ﬁrst reset date
2
Interest payable semi-annually in arrears
3
Securit
ies are resettable each date fall
ing ﬁve years, or an integral multiple of ﬁve years, after the ﬁrst reset date
The princ
ipal terms of the AT1 secur
it
ies are descr
ibed below:
•
The securit
ies are perpetual and redeemable, at the opt
ion of the Company in whole but not in part, on the ﬁrst call date
or on any ﬁfth anniversary after the ﬁrst call date
•
The securit
ies are also redeemable for certa
in regulatory or tax reasons on any date at 100 per cent of their princ
ipal
amount together with any accrued but unpaid interest up to (but excluding) the date ﬁxed for redemption. Any
redemption is subject to the Company giv
ing not
ice to the relevant regulator and the regulator granting permiss
ion
to redeem interest payments on these securit
ies w
ill be accounted for as a div
idend
•
Interest on the securit
ies
is due and payable only at the sole and absolute discret
ion of the Company, subject to certa
in
addit
ional restr
ict
ions set out
in the terms and condit
ions. Accord
ingly, the Company may at any time elect to cancel
any interest payment (or part thereof) which would otherwise be payable on any interest payment date
•
The securit
ies w
ill be written down in full should the fully loaded Common Equity Tier 1 ratio of the issuer fall below
7.0 per cent (a Loss Absorption Event).
The securit
ies rank beh
ind the claims against the Company of: (a) unsubordinated creditors; (b) claims which are expressed
to be subordinated to the claims of unsubordinated creditors of the Company but not further or otherwise; or (c) claims which
are, or are expressed to be, junior to the cla
ims of other creditors of the Company, whether subordinated or unsubordinated,
other than claims which rank, or are expressed to rank, pari passu with, or jun
ior to, the cla
ims of holders of the AT1 securit
ies
in a wind
ing-up occurr
ing prior to the Loss Absorption Event.
27. Share capital, other equity instruments and reserves continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
213
Directors’ Report and Financ
ial Statements 2024
Reserves
The constituents of the reserves are summarised as follows:
The capital reserve represents the exchange difference on redenominat
ion of share cap
ital and share premium from sterling
to US dollars in 2001. The capital redemption reserve represents the nominal value of preference shares redeemed.
•
Own credit adjustment reserve represents the cumulative gains and losses on ﬁnanc
ial l
iab
il
it
ies des
ignated at fair
value through proﬁt or loss relating to own credit. Gains and losses on ﬁnanc
ial l
iab
il
it
ies des
ignated 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 derecognit
ion of appl
icable instruments, the balance of any OCA will not be recycled to the income statement,
but will be transferred with
in equ
ity to retained earnings
•
Fair value through other comprehensive income (FVOCI) debt reserve represents the unrealised fair value gains and losses
in respect of ﬁnanc
ial assets class
if
ied as FVOCI, net of expected cred
it losses. Gains and losses are deferred in this reserve
and are reclassif
ied to the
income statement when the underlying asset is sold, matures or becomes impa
ired.
•
FVOCI equity reserve represents unrealised fair value gains and losses in respect of ﬁnanc
ial assets class
if
ied as FVOCI.
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 derivat
ives that meet the cr
iter
ia for
these types of hedges. Gains and losses are deferred in this reserve and are reclassif
ied to the
income statement when the
underlying hedged item affects proﬁt and loss or when a forecast transaction is no longer expected to occur.
•
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 reclassif
ied to the
income statement when the underlying foreign operation is disposed. Gains and losses aris
ing from der
ivat
ives 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 div
idend d
istr
ibut
ions
and own shares held (treasury shares).
A substantial part of the Group’s reserves is held in overseas subsid
iary undertak
ings and branches, princ
ipally 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 addit
ion,
if these overseas reserves were to be remitted, further
unprovided taxation liab
il
it
ies m
ight arise.
As at 31 December 2024, the distr
ibutable reserves of Standard Chartered Bank (the Company) were $2.2 b
ill
ion
(31 December 2023: $2.7 bill
ion). These compr
ised of retained earnings. Distr
ibut
ion of reserves is subject to mainta
in
ing
min
imum cap
ital requirements.
28. Non-controlling interests
Non-controlling interests are measured at the non-controlling interest’s proportionate share of the acquiree’s ident
iﬁable
net assets.

| 2024 | 2023
| $mill ion | $mill ion
At 1 January | 1,080 | 1,164
Comprehensive income/(loss) for the year | 22 | (2)
Loss in equity attributable to non-controlling interests | (17) | (31)
Other proﬁts attributable to non-controlling interests | 39 | 29
Distr ibut ions | (125) | (103)
Other (decrease) / increases 1 | (513) | 21
At 31 December | 464 | 1,080

1
Movement in 2024 is primar
ily from Standard Chartered Bank S
ingapore Lim
ited $562 m
ill
ion perta
in
ing to redempt
ion of preference shares and disposal of Standard
Chartered Bank Angola S.A. ($6 mill
ion) partly offset by non-controll
ing interest in Trust Bank Singapore Lim
ited ($55 m
ill
ion). Net Cash Flow from Non Controll
ing
interest is $506 mill
ion (2023: Cash rece
ived $21 mill
ion). Movements
in 2023 driven by addit
ional
investment by minor
ity shareholders ($28 m
ill
ion) majorly
in Trust Bank
Singapore Lim
ited offset by release of
interest on account of change in ownership ($7 mill
ion).
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
214
Directors’ Report and Financ
ial Statements 2024
29. Retirement beneﬁt obligat
ions
Accounting policy
The Group operates pension and other post-retirement beneﬁt plans around the world, which can be categorised into
deﬁned contribut
ion
plans and
deﬁned beneﬁt
plans.
• For
deﬁned contribut
ion
plans, the Group pays contribut
ions to publ
icly or privately admin
istered pens
ion plans on
a statutory or contractual basis, and such amounts are charged to operating expenses. The Group has no further
payment obligat
ions once the contr
ibut
ions have been pa
id.
• For
deﬁned beneﬁt
plans, which promise levels of payments where the future cost is not known with certainty:
–
the accounting obligat
ion
is calculated annually by independent actuaries using the projected unit method.
–
Actuarial gains and losses that arise are recognised in shareholders’ equity and presented in the statement of other
comprehensive income in the period they arise.
–
The Group determines the net interest expense on the net deﬁned beneﬁt liab
il
ity for the year by applying the
discount rate used to measure the deﬁned beneﬁt obligat
ion at the beg
inn
ing of the annual per
iod to the net deﬁned
beneﬁt liab
il
ity, taking into account any changes in the net deﬁned beneﬁt liab
il
ity during the year as a result of
contribut
ions and beneﬁt payments. Net
interest expense, the cost of the accrual of new beneﬁts, beneﬁt enhancements
(or reductions) and admin
istrat
ion expenses met directly from plan assets are recognised in the income statement
in the period in which they were incurred.
Other accounting estimates and judgements
There are many factors that affect the measurement of the retirement beneﬁt obligat
ions. Th
is measurement requires
the use of estimates, such as discount rates, inﬂat
ion, pens
ion increases, salary increases, and life expectancies which are
inherently uncertain. The table below summarises how these assumptions are set:

Assumption | Detail
Discount rate | Determined by reference to market yields at the end of the reporting period on high-quality corporate bonds
| (or, in countries where there is no deep market in such bonds, government bonds) of a currency and term
| consistent with the currency and term of the post-employment beneﬁt obligat ions. Th is is the approach
| adopted across all our geographies.
Inﬂation | Where there are inﬂat ion-l inked bonds available (e.g. United Kingdom and the eurozone), the Group derives
| inﬂat ion based on the market on those bonds, w ith the market yield adjusted in respect of the United Kingdom to
| take account of the fact that liab il it ies are l inked to Consumer Price Index inﬂat ion, whereas the reference bonds
| are linked to Retail Price Index inﬂat ion. Where no inﬂat ion-l inked bonds exist, we determine inﬂat ion assumpt ions
| based on a combinat ion of long-term forecasts and short-term inﬂat ion data.
Salary growth | Salary growth assumptions reﬂect the Group’s long-term expectations, taking into account future business plans
| and macroeconomic data (primar ily expected future long-term inﬂat ion).
Demographic | Demographic assumptions, includ ing mortal ity and turnover rates, are typically set based on the assumptions
assumptions | used in the most recent actuarial funding valuation, and will generally use industry standard tables, adjusted
| where appropriate to reﬂect recent histor ic exper ience and/or future expectations.

The sensit
iv
ity of the liab
il
it
ies to changes
in these assumptions is shown in the Note below.
Bank Group
Net Retirement beneﬁt obligat
ion and charge compr
ise:

| Net Obligat ion | Charge 1
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Deﬁned beneﬁt plans obligat ion | 118 | 161 | 37 | 41
Deﬁned contribut ion plans obl igat ion | 13 | 16 | 295 | 271
Total | 131 | 177 | 332 | 312

1
Refer note 7: Operating expenses
The Group operates over 50 deﬁned beneﬁt plans across its geographies, many of which are closed to new entrants who
now join deﬁned contr
ibut
ion arrangements. The a
im of all these plans is, as part of the Group’s commitment to ﬁnanc
ial
wellbeing for employees, to give employees the opportunity to save appropriately for retirement in a way that is consistent
with local regulations, taxation requirements and market condit
ions. The deﬁned beneﬁt plans expose the Group to currency
risk, interest rate risk, investment risk and actuarial risks such as longevity risk.
29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
215
Directors’ Report and Financ
ial Statements 2024
The material holdings of government and corporate bonds shown on page 270 partially hedge movements in the liab
il
it
ies
resulting from interest rate and inﬂat
ion changes. Sett
ing aside movements from other drivers such as currency ﬂuctuation,
increases in discount rates in most countries with material pension liab
il
it
ies over 2024 has led to lower l
iab
il
it
ies. Th
is has been
partly offset by decreases in the value of bonds held, however growth assets such as equit
ies performed well over 2024,
leading to an increase in the pension deﬁc
it reported. These movements are shown as actuar
ial gains and losses in the table
below. Contribut
ions
into a number of plans in excess of the amounts required to fund beneﬁts accruing have also partially
offset the increase in the net deﬁc
it over the year.
The disclosures required under IAS 19 have been calculated by independent qualif
ied actuar
ies based on the most recent
full actuarial valuations updated, where necessary, to 31 December 2024.
UK Fund
The Standard Chartered Pension Fund (the ‘UK Fund’) is the Bank Group’s largest pension plan, representing 56 per cent
(31 December 2023: 67 per cent) of total pension liab
il
it
ies. The UK Fund
is set up under a trust that is legally separate
from the Bank (its formal sponsor) and, as required by UK legislat
ion, at least one-th
ird of the trustee directors are nominated
by members; the remainder are appointed by the Bank. The trustee directors have a ﬁduc
iary duty to members and are
responsible for governing the UK Fund in accordance with its Trust Deed and Rules.
The UK Fund was closed to new entrants from 1 July 1998 and closed to the accrual of new beneﬁts from 1 April 2018.
All employees are now offered membership of a deﬁned contribut
ion plan.
The ﬁnancial pos
it
ion of the UK Fund
is regularly assessed by an independent qualif
ied actuary. The fund
ing valuation as at
31 December 2023 was completed in December 2024 by the Scheme Actuary, T Kripps of WTW, using assumptions different
from those on page 286, and agreed with the UK Fund trustee. It showed that the UK Fund was 96% funded at that date,
revealing a past service deﬁc
it of $48m
ill
ion (£38 m
ill
ion).
To repair the deﬁc
it, three annual cash payments of $13 m
ill
ion (£10 m
ill
ion) were agreed, w
ith the ﬁrst of these paid in
December 2024, and two further instalments to be paid in December 2025 and December 2026. However, the agreement
allows that the payments due in 2025 and 2026 may be varied depending on the funding posit
ion at the preced
ing 30 June.
As part of the 2023 valuation agreement, it was agreed that gilts with a nominal value of $200 mill
ion (£160 m
ill
ion) would
remain in escrow to provide addit
ional secur
ity to the Trustee.
The Bank Group has not recognised any addit
ional l
iab
il
ity under IFRIC 14 as the Bank has control of any pension surplus
under the Trust Deed and Rules.
Overseas plans
The princ
ipal overseas deﬁned beneﬁt arrangements operated by the Bank Group are
in Germany, India, Jersey,
United Arab Emirates (UAE) and the United States of America (US). Plans in Germany, India and UAE remain open
for accrual of future beneﬁts.
Key assumptions
The princ
ipal ﬁnancial assumpt
ions used at 31 December 2024 were:

| 2024 | 2023
|  | Overseas | Unfunded |  | Overseas | Unfunded
| UK Fund | Plans 1 | Plans 2 | UK Funded | Plans 1 | Plans 2
| % | % | % | % | % | %
Discount rate | 5.5 | 3.4 - 6.9 | 2.5 – 6.9 | 4.6 | 3.3-7.4 | 3.1-7.4
Price inﬂat ion | 2.5 | 2.0 – 5.0 | 2.0 – 5.0 | 2.5 | 2.2-5.0 | 2.0-5.0
Salary increases | n/a | 3.5 – 8.5 | 4.0 – 8.5 | n/a | 3.7-8.5 | 4.0-8.5
Pension increases | 2.3 | 0.0 – 2.9 | 0.0 – 2.3 | 2.3 | 0.0-2.9 | 0.0-2.3
Post-retirement medical rate | n/a |  | n/a 8% in 2024 reducing |  |  | 8% in 2023 reducing
|  |  | by 0.5% per annum |  |  | by 0.5% per annum
|  |  | to 5% in 2030 |  |  | to 5% in 2029

1
The range of assumptions shown is for the main funded deﬁned beneﬁt overseas plans in Germany, India, Jersey, and the US. These comprise around 85 per cent of the
total liab
il
it
ies of funded overseas deﬁned beneﬁt plans
2
The range of assumptions shown is for the main unfunded plans in, India, Thailand, UAE, UK and the US. They comprise around 90 per cent of the total liab
il
it
ies of
unfunded plans
The princ
ipal non-ﬁnancial assumpt
ions are those made for UK life expectancy. The UK mortality tables are S4PMA for
males and S4PFA for females, projected by year of birth with the CMI 2023 improvement model with a 1.25% annual trend
and in
it
ial addit
ion parameter of 0.25%. Scal
ing factors of 81% for male pensioners, 93% for female pensioners, 81% for male
dependants and 81% for female dependants have been applied.
The assumptions for life expectancy for the UK Fund are that a male member currently aged 60 will live for 28 years
(31 December 2023: 27 years) and a female member for 29 years (31 December 2023: 30 years) and a male member currently
aged 40 will live for 29 years (31 December 2023: 29 years) and a female member for 31 years (31 December 2023: 32 years)
after their 60th birthdays.
29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
216
Directors’ Report and Financ
ial Statements 2024
Both ﬁnancial and non-ﬁnancial assumpt
ions can be expected to change in the future, which would affect the value placed
on the liab
il
it
ies. For example, changes at the report
ing date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the deﬁned beneﬁt obligat
ion by the amounts shown below:
•
If the discount rate increased by 25 basis points, the liab
il
ity would reduce by approximately $25 mill
ion for the UK Fund
(31 December 2023: $35 mill
ion) and $15 m
ill
ion for the other plans (31 December 2023: $20 m
ill
ion)
•
If the rate of inﬂat
ion
increased by 25 basis points, the liab
il
ity allowing for the consequent impact on pension and salary
increases, would increase by approximately $15 mill
ion for the UK Fund (31 December 2023: $20 m
ill
ion) and $10 m
ill
ion for
the other plans (31 December 2023: $10 mill
ion)
•
If the rate of salary growth relative to inﬂat
ion
increased by 25 basis points, the liab
il
ity would increase by nil for the UK
Fund (31 December 2023: nil) and approximately $5 mill
ion for the other plans (31 December 2023: $5 m
ill
ion)
•
If longevity expectations increased by one year, the liab
il
ity would increase by approximately $35 mill
ion for the UK Fund
(31 December 2023: $35 mill
ion) and $10 m
ill
ion for the other plans (31 December 2023: $10 m
ill
ion)
Although this analysis does not take account of the full distr
ibut
ion of cash ﬂows expected under the UK Fund, it does provide
an approximat
ion of the sens
it
iv
ity to the main assumptions. While changes in other assumptions would also have an
impact, the effect would not be as sign
iﬁcant.
Proﬁle of plan obligat
ions

| Funded plans | Unfunded
| UK Fund | Overseas | plans
Duration of the deﬁned beneﬁt obligat ion ( in years) | 10 | 9 | 8
Duration of the deﬁned beneﬁt obligat ion – 2023 | 11 | 11 | 9
Beneﬁts expected to be paid from plans |  |  |
Beneﬁts expected to be paid during 2025 | 83 | 47 | 19
Beneﬁts expected to be paid during 2026 | 85 | 47 | 17
Beneﬁts expected to be paid during 2027 | 88 | 48 | 16
Beneﬁts expected to be paid during 2028 | 90 | 51 | 17
Beneﬁts expected to be paid during 2029 | 92 | 57 | 16
Beneﬁts expected to be paid during 2030 to 2034 | 495 | 320 | 78

Fund values:
The fair value of assets and present value of liab
il
it
ies of the deﬁned beneﬁt plans were:

| 2024 |  | 2023
| UK Fund | Overseas plans | UK Fund | Overseas plans
| Quoted | Unquoted | Total | Quoted | Unquoted | Total | Quoted | Unquoted | Total | Quoted | Unquoted | Total
| assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 31 December |  |  |  |  |  |  |  |  |  |  |  |
Equit ies | 2 | – | 2 | 43 | – | 43 | 2 | – | 2 | 44 | – | 44
Government bonds | 342 | – | 342 | 204 | – | 204 | 443 | – | 443 | 119 | – | 119
Corporate bonds | 357 | 126 | 483 | 253 | – | 253 | 360 | 113 | 473 | 148 | – | 148
Hedge funds | – | 5 | 5 | – | – | – | – | 9 | 9 | – | – | –
Infrastructure | – | 170 | 170 | – | – | – | – | 166 | 166 | – | – | –
Property | – | 81 | 81 | – | 16 | 16 | – | 84 | 84 | – | – | –
Derivat ives | 22 | (1) | 21 | – | – | – | 2 | 5 | 7 | – | – | –
Cash and equivalents | 35 | – | 35 | 29 | – | 29 | 66 | – | 66 | 20 | – | 20
Others | 7 | 2 | 9 | – | 88 | 88 | 7 | 2 | 9 | – | 78 | 78
Total fair value of |  |  |  |  |  |  |  |  |  |  |  |
assets 1 | 765 | 383 | 1,148 | 529 | 104 | 633 | 880 | 379 | 1259 | 331 | 78 | 409

1
Self-investment is monitored closely and is less than $1 mill
ion of Standard Chartered equ
it
ies and bonds for 2024 (2023: <$1 m
ill
ion). Self-
investment is only
allowed where it is not practical to exclude it – for example through investment in index-tracking funds where the Standard Chartered Group is a constituent of
the relevant index
29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
217
Directors’ Report and Financ
ial Statements 2024

| 2024 | 2023
| Funded plans |  | Funded plans | Unfunded
|  | Overseas | Unfunded |  | Overseas | Plans
| UK Fund | Plans | Plans | UK Fund | Plans | $mill ion
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion |
Total fair value of assets | 1,148 | 633 | n/a | 1259 | 409 | n/a
Present value of liab il it ies | (1,070) | (655) | (174) | (1219) | (429) | (181)
Net pension plan asset / (obligat ion) | 78 | (22) | (174) | 40 | (20) | (181)
Of which: Total pension assets in respect of plans |  |  |  |  |  |
in surplus | 78 | 41 | – | 40 | 35 |
Of which: Total pension obligat ions in respect of plans |  |  |  |  |  |
in deﬁc it | – | (63) | (174) |  | (55) | (181)

The pension cost for deﬁned beneﬁt plans was:

| 2024 | 2023
| Funded plans |  | Funded plans |
|  | Overseas | Unfunded |  |  | Overseas | Unfunded |
| UK Fund | Plans | Plans | Total | UK Fund | plans | plans | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Current service cost 1 | – | 19 | 7 | 26 | – | 15 | 9 | 24
Past service cost and |  |  |  |  |  |  |  |
curtailments 2 | – | 2 | (1) | 1 | 8 | – | – | 8
Settlement cost 3 | – | 3 | – | 3 | – | 2 | – | 2
Interest income on |  |  |  |  |  |  |  |
pension plan assets | (56) | (26) | – | (82) | (57) | (25) | – | (82)
Interest on pension |  |  |  |  |  |  |  |
plan liab il it ies | 54 | 27 | 8 | 89 | 56 | 25 | 8 | 89
Total charge to proﬁt |  |  |  |  |  |  |  |
before deduction of tax | (2) | 25 | 14 | 37 | 7 | 17 | 17 | 41
Net (gain) / losses on |  |  |  |  |  |  |  |
plan assets 4 | 78 | (3) |  | 75 | (18) | (50) |  | (68)
(Gains) / losses |  |  |  |  |  |  |  |
on liab il it ies | (103) | 3 | (1) | (101) | 30 | 57 | 8 | 95
Total (gains)/losses |  |  |  |  |  |  |  |
recognised directly |  |  |  |  |  |  |  |
in statement of |  |  |  |  |  |  |  |
comprehensive income |  |  |  |  |  |  |  |
before tax | (25) | – | (1) | (26) | 12 | 7 | 8 | 27
Deferred taxation | 5 | 3 | – | 8 | (1) | (6) | – | (7)
Total (gains) /losses after |  |  |  |  |  |  |  |
tax | (20) | 3 | (1) | (18) | 11 | 1 | 8 | 20

1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2023: $1 m
ill
ion)
2
Includes plan amendments in India
3
Terminat
ion beneﬁts pa
id in Indonesia
4
The actual return on the UK Fund assets was a loss of $22 mill
ion (2023: $75 m
ill
ion ga
in) and on overseas plan assets was a gain of $29 mill
ion (2023: $75 m
ill
ion ga
in)
29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
218
Directors’ Report and Financ
ial Statements 2024
Movement in the deﬁned beneﬁt pension deﬁc
it dur
ing the year comprise:

| 2024 | 2023
| Funded plans |  | Funded plans |
|  | Overseas | Unfunded |  |  | Overseas | Unfunded |
| UK Fund | plans | plans | Total | UK Fund | plans | plans | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Surplus/(deﬁcit) at |  |  |  |  |  |  |  |
1 January | 40 | (20) | (181) | (161) | 48 | (28) | (167) | (147)
Contribut ions | 13 | 18 | 17 | 48 | 8 | 38 | 14 | 60
Current service cost 1 | – | (19) | (7) | (26) | – | (15) | (9) | (24)
Past service cost and |  |  |  |  |  |  |  |
curtailments | – | (2) | 1 | (1) | (8) | – | – | (8)
Settlement costs and |  |  |  |  |  |  |  |
transfers impact | – | (3) | – | (3) | – | (2) | – | (2)
Net interest on the |  |  |  |  |  |  |  |
net deﬁned beneﬁt |  |  |  |  |  |  |  |
asset/liab il ity | 2 | (1) | (8) | (7) | 1 | – | (8) | (7)
Actuarial gains/(losses) | 25 | – | 1 | 26 | (12) | (7) | (8) | (27)
Assets held for sale 2 | – | – | – | – | – | (7) | 6 | (1)
Other Movement 3 | – | (1) | – | (1) |  |  |  |
Exchange rate adjustment | (2) | 6 | 3 | 7 | 3 | 1 | (9) | (5)
Surplus/(deﬁcit) at |  |  |  |  |  |  |  |
31 December¹ | 78 | (22) | (174) | (118) | 40 | (20) | (181) | (161)

1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2023: $1 m
ill
ion)
2
For 2023 this included the impact of plans in Cameroon, Cote D’Ivoire, Jordan and Zimbabwe being excluded from the closing balances and classif
ied separately under
Assets held for Sale.
3
This relates to the Standard Chartered India Provident Fund, which has previously been treated as a deﬁned contribut
ion plan. However, w
ith effect from November
2024, a min
imum rate of return
is applicable to the plan, and so going forward it will be treated as a deﬁned beneﬁt plan as required by IAS 19.
The Bank Group’s expected contribut
ion to
its deﬁned beneﬁt pension plans in 2025 is $48 mill
ion.

| 2024 | 2023
| Assets | Obligat ions | Total | Assets | Obligat ions | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 1 January | 1,668 | (1,829) | (161) | 1,552 | (1,699) | (147)
Contribut ions 1 | 49 | (1) | 48 | 61 | (1) | 60
Current service cost 2 | – | (26) | (26) | – | (24) | (24)
Past service cost and curtailments | – | (1) | (1) | – | (8) | (8)
Settlement costs 3 | – | (3) | (3) | – | (2) | (2)
Interest cost on pension plan liab il it ies | – | (89) | (89) | – | (89) | (89)
Interest income on pension plan assets | 82 | – | 82 | 82 | – | 82
Beneﬁts paid out | (131) | 131 | – | (120) | 120 | –
Actuarial gains/(losses) 4 | (75) | 101 | 26 | 68 | (95) | (27)
Asset held for Sale | – | – | – | (7) | 6 | (1)
Other Movement 5 | 212 | (213) | (1) | – | – | –
Exchange rate adjustment | (24) | 31 | 7 | 32 | (37) | (5)
At 31 December | 1,781 | (1,899) | (118) | 1,668 | (1,829) | (161)

1
Includes employee contribut
ions of $1 m
ill
ion (2023: $1 m
ill
ion)
2
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2023: $1 m
ill
ion)
3
Impact of settlements relates to terminat
ion beneﬁts pa
id in Indonesia.
4
Actuarial gain on obligat
ion compr
ises of $133 mill
ion ga
in (2023: $28 mill
ion loss) from ﬁnancial assumpt
ion changes, $1 mill
ion ga
in (2023: $1 mill
ion loss) from
demographic assumption changes and $33 mill
ion loss (2023: $34 m
ill
ion loss) from exper
ience.
5
These are assets and liab
il
it
ies of the Standard Chartered Ind
ia Provident Fund, which has previously been treated as a deﬁned contribut
ion plan. However, w
ith effect
from November 2024, a min
imum rate of return
is applicable to the plan, and so going forward it will be treated as a deﬁned beneﬁt plan as required by IAS 19
29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
219
Directors’ Report and Financ
ial Statements 2024
Company
Retirement beneﬁt obligat
ions compr
ise:

| Obligat ion | Charge
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Deﬁned beneﬁt plans obligat ion | 81 | 128 | 22 | 29
Deﬁned contribut ion plans obl igat ion | 1 | 5 | 147 | 135
Net | 82 | 133 | 169 | 164

Retirement beneﬁt charge comprises:
UK Fund
See the Bank Group section on the UK Fund in this note (page 215). There are no differences between Bank Group and
Company in respect of the Fund
Overseas Plans
The princ
ipal overseas deﬁned beneﬁt arrangements operated by the Company are
in Germany, Jersey, India,
United Arab Emirates (UAE) and the United States of Americas (US).
All Plans
The disclosures required under IAS 19 have been calculated by qualif
ied
independent actuaries based on the most
recent full actuarial valuations updated, where necessary, to 31 December 2024.
The ﬁnancial assumpt
ions used at 31 December 2024 as shown below. Sensit
iv
it
ies are recorded on page 216 of the Bank
Group accounts and those for non-UK Fund plans are applicable in proportion to the lower liab
il
it
ies of the Company.

| 2024 | 2023
|  | Overseas | Unfunded |  | Overseas | Unfunded
| UK Fund | Plans 1 | Plans 2 | UK Funded | Plans 1 | Plans 2
| % | % | % | % | % | %
Discount rate | 5.5 | 3.4 – 12.5 | 4.5 – 6.9 | 4.6 | 3.3-7.4 | 4.6-7.4
Price inﬂat ion | 2.5 | 2.0 – 6.0 | 2.5 – 6.9 | 2.5 | 2.2-5.0 | 2.5-5.0
Salary increases | n/a | 3.5 – 8.5 | 4.5 – 8.5 | n/a | 3.7-8.5 | 4.5 -8.5
Pension increases | 2.3 | 0.0 – 2.9 | 0.0 – 2.3 | 2.3 | 0.0-2.9 | 0.0-2.3
Post-retirement medical rate | n/a | n/a | 8% in 2024 reducing | n/a | n/a | 8% in 2023 reducing
|  |  | by 0.5% per annum |  |  | by 0.5% per annum to
|  |  | to 5% in 2030 |  |  | 5% in 2029

1
The range of assumptions shown is for the main funded deﬁned beneﬁt overseas plans in Germany, Bangladesh, India, Jersey and the US. These comprise around
90 per cent of the total liab
il
it
ies of funded overseas plans
2
The range of assumptions shown is for the main unfunded deﬁned beneﬁt plans in India, UAE, UK and the US. These comprise around 90 per cent of the total liab
il
it
ies
of unfunded plans
29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
220
Directors’ Report and Financ
ial Statements 2024
Fund values:
The fair value of assets and present value of liab
il
it
ies of the deﬁned beneﬁt plans were:

| 2024 | 2023
| UK Fund | Overseas plans | UK Fund | Overseas plans
| Quoted | Unquoted | Total | Quoted | Unquoted | Total | Quoted | Unquoted | Total | Quoted | Unquoted | Total
| assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 31 December |  |  |  |  |  |  |  |  |  |  |  |
Equit ies | 2 | – | 2 | 35 | – | 35 | 2 | – | 2 | 39 | – | 39
Government bonds | 342 | – | 342 | 195 | – | 195 | 443 | – | 443 | 111 | – | 111
Corporate bonds | 357 | 126 | 483 | 250 | – | 250 | 360 | 113 | 473 | 146 | – | 146
Hedge funds | – | 5 | 5 | – | – | – | – | 9 | 9 | – | – | –
Infrastructure | – | 170 | 170 | – | – | – | – | 166 | 166 | – | – | –
Property | – | 81 | 81 | – | 15 | 15 | – | 84 | 84 | – | – | –
Derivat ives | 22 | (1) | 21 | – | – | – | 2 | 5 | 7 | – | – | –
Cash and equivalents | 35 | – | 35 | 22 | – | 22 | 66 | - | 66 | 12 | – | 12
Others | 7 | 2 | 9 | – | 37 | 37 | 7 | 2 | 9 | – | 32 | 32
Total fair value |  |  |  |  |  |  |  |  |  |  |  |
of assets 1 | 765 | 383 | 1,148 | 502 | 52 | 554 | 880 | 379 | 1259 | 308 | 32 | 340

1
Self investment is monitored closely and is less than $1 mill
ion of Standard Chartered equ
it
ies and bonds for 2024 (2023: <$1 m
ill
ion). Self-
investment is only allowed
where it is not practical to exclude it – for example through investment in index-tracking funds where the Bank is a constituent of the relevant index

| At 31 December 2024 | At 31 December 2023
| Funded plans | Unfunded | Funded plans | Unfunded
|  | Overseas | Plans |  | Overseas | Plans
| UK Fund | Plans | $mill ion | UK Fund | Plans | $mill ion
| $mill ion | $mill ion |  | $mill ion | $mill ion |
Total fair value of assets | 1,148 | 554 | n/a | 1259 | 340 | n/a
Present value of liab il it ies | (1,070) | (553) | (160) | (1219) | (338) | (170)
Net pension plan asset / (obligat ion) | 78 | 1 | (160) | 40 | 2 | (170)
Of which: Total pension assets in respect of plans |  |  |  |  |  |
in surplus | 78 | 40 | – | 40 | 34 | –
Of which: Total pension obligat ions in respect of |  |  |  |  |  |
plans in deﬁc it | – | (39) | (160) | – | (32) | (170)

29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
221
Directors’ Report and Financ
ial Statements 2024
The pension cost for deﬁned beneﬁt plans was:

| 2024 | 2023
| Funded plans |  |  | Funded plans |  |
|  | Overseas | Unfunded |  |  | Overseas | Unfunded |
| UK Fund | plans | plans | Total | UK Fund | plans | plans | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Current service cost 1 | – | 9 | 4 | 13 | – | 7 | 6 | 13
Past service cost and |  |  |  |  |  |  |  |
curtailments 2 | – | 2 | (1) | 1 | 8 | – | – | 8
Settlement cost 3 | – | 3 | – | 3 | – | 2 | – | 2
Interest income on |  |  |  |  |  |  |  |
pension plan assets | (56) | (19) | – | (75) | (57) | (18) | – | (75)
Interest on pension |  |  |  |  |  |  |  |
plan liab il it ies | 54 | 18 | 8 | 80 | 56 | 18 | 7 | 81
Total charge to proﬁt |  |  |  |  |  |  |  |
before deduction of tax | (2) | 13 | 11 | 22 | 7 | 9 | 13 | 29
Net gain / losses on |  |  |  |  |  |  |  |
plan assets 4 | 78 | (2) |  | 76 | (18) | (13) | – | (31)
Gains / losses on liab il it ies | (103) | (1) | (1) | (105) | 30 | 18 | 8 | 56
Total (gains)/losses |  |  |  |  |  |  |  |
recognised directly |  |  |  |  |  |  |  |
in statement of |  |  |  |  |  |  |  |
comprehensive income |  |  |  |  |  |  |  |
before tax | (25) | (3) | (1) | (29) | 12 | 5 | 8 | 25
Deferred taxation | 5 | 1 | – | 6 | (1) | (3) | – | (4)
Total (gains) /losses |  |  |  |  |  |  |  |
after tax | (20) | (2) | (1) | (23) | 11 | 2 | 8 | 21

1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (31 December 2023: $1 m
ill
ion)
2
Relates to plan amendments in India
3
Terminat
ion beneﬁts pa
id from the pension fund in Indonesia
4
The actual return on the UK Fund assets was a loss of $22 mill
ion (31 December 2023: $75 m
ill
ion ga
in) and on overseas plan assets was a gain of $21 mill
ion (31
December 2023: $31 mill
ion ga
in)
Movement in the deﬁned beneﬁt pension plans and post-retirement medical deﬁc
it dur
ing the year comprise:

| 2024 | 2023
| Funded plans |  | Funded plans |
|  | Overseas | Unfunded |  |  | Overseas | Unfunded |
| UK Fund | plans | plans | Total | UK Fund | plans | plans | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Surplus/(Deﬁcit) at |  |  |  |  |  |  |  |
1 January | 40 | 2 | (170) | (128) | 48 | (10) | (158) | (120)
Contribut ions | 13 | 10 | 16 | 39 | 8 | 26 | 12 | 46
Current service cost | – | (9) | (4) | (13) | – | (7) | (6) | (13)
Past service cost |  |  |  |  |  |  |  |
and curtailments | – | (2) | 1 | (1) | (8) | – | – | (8)
Settlement costs and |  |  |  |  |  |  |  |
transfers impact | – | (3) | – | (3) | – | (2) | – | (2)
Net interest on the |  |  |  |  |  |  |  |
net deﬁned beneﬁt |  |  |  |  |  |  |  |
asset/liab il ity | 2 | 1 | (8) | (5) | 1 | – | (7) | (6)
Actuarial (losses)/gains | 25 | 3 | 1 | 29 | (12) | (5) | (8) | (25)
Asset held for Sale 1 | – | – | – | – | – | – | (1) | (1)
Other Movement 2 | – | (1) | – | (1) | – | – | – | –
Exchange rate adjustment | (2) | – | 4 | 2 | 3 | – | (2) | 1
Surplus/(Deﬁcit) at |  |  |  |  |  |  |  |
31 December | 78 | 1 | (160) | (81) | 40 | 2 | (170) | (128)

1 This reﬂects the sale of the business in Jordan.
2 This relates to the Standard Chartered India Provident Fund, which has previously been treated as a deﬁned contribut
ion plan. However, w
ith effect from November
2024, a min
imum rate of return
is applicable to the plan, and so going forward it will be treated as a deﬁned beneﬁt plan as required by IAS 19.
29. Retirement beneﬁt obligat
ions cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
222
Directors’ Report and Financ
ial Statements 2024
The Company’s expected contribut
ion to
its deﬁned beneﬁt pension plans in 2025 is $44 mill
ion

| 2024 | 2023
| Assets | Obligat ions | Total | Assets | Obligat ions | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
At 1 January | 1,599 | (1,727) | (128) | 1,491 | (1,611) | (120)
Contribut ions | 39 | – | 39 | 46 | – | 46
Current service cost 1 | – | (13) | (13) | – | (13) | (13)
Past service cost and curtailments | – | (1) | (1) | – | (8) | (8)
Settlement costs | – | (3) | (3) | – | (2) | (2)
Interest cost on pension plan liab il it ies | – | (80) | (80) | – | (81) | (81)
Interest income on pension plan assets | 75 | – | 75 | 75 | – | 75
Beneﬁts paid out | (123) | 123 | – | (114) | 114 | –
Actuarial (losses)/gains 2 | (76) | 105 | 29 | 31 | (56) | (25)
Asset held for Sale | – | – | – | – | (1) | (1)
Other Movement 3 | 212 | (213) | (1) | – | – | –
Exchange rate adjustment | (24) | 26 | 2 | 70 | (69) | 1
At 31 December | 1,702 | (1,783) | (81) | 1,599 | (1,727) | (128)

1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (31 December 2023: $1 m
ill
ion)
2
Actuarial gain on obligat
ion compr
ises of $135 mill
ion ga
in (31 December 2023: $25 mill
ion loss) from ﬁnancial assumpt
ion changes, $1 mill
ion ga
in (31 December 2023: $1
mill
ion loss) from demograph
ic assumption changes and $31 mill
ion loss (31 December 2023: $30 m
ill
ion loss) from exper
ience
3
These are assets and liab
il
it
ies of the Standard Chartered Ind
ia Provident Fund, which has previously been treated as a deﬁned contribut
ion plan. However, w
ith effect
from November 2024, a min
imum rate of return
is applicable to the plan, and so going forward it will be treated as a deﬁned beneﬁt plan as required by IAS 19.
30. Share-based payments
Accounting policy
The Group operates equity-settled and cash-settled share-based compensation plans. The fair value of the employee
services (measured by the fair value of the awards granted) received in exchange for the grant of the shares and awards
is recognised as an expense. For deferred share awards granted as part of an annual performance award, the expense is
recognised over the period from the start of the performance period to the vesting date. For example, the expense for
three-year awards granted in 2024 in respect of 2023 performance, which vest in 2025-2027, is recognised as an expense over
the period from 1 January 2023 to the vesting dates in 2025-2027. For all other awards, the expense is recognised over the
period from the date of grant to the vesting date.
For equity-settled awards, the total amount to be expensed over the vesting period is determined by reference to the fair
value of the shares and awards at the date of grant, which excludes the impact of any non-market vesting condit
ions
(for example, proﬁtabil
ity and growth targets). The fair value of equity instruments granted is based on market prices,
if available, at the date of grant. In the absence of market prices, the fair value of the instruments is estimated using an
appropriate valuation technique, such as a binom
ial opt
ion pric
ing model. Non-market vest
ing condit
ions are
included in
assumptions for the number of shares and awards that are expected to vest.
At each balance sheet date, the Group revises its estimates of the number of shares and awards that are expected to vest.
It recognises the impact of the revis
ion of or
ig
inal est
imates, if any, in the income statement and a corresponding adjustment
to equity over the remain
ing vest
ing period. Forfeitures prior to vesting attributable to factors other than the failure to satisfy
service condit
ions and non-market vest
ing condit
ions are treated as a cancellat
ion and the remain
ing unamort
ised charge
is debited to the income statement at the time of cancellation. The proceeds received net of any directly attributable
transaction costs are credited to share capital (nominal value) and share premium when awards in the form of options
are exercised.
Cash-settled awards are revalued at each balance sheet date and a liab
il
ity recognised on the balance sheet for all unpaid
amounts, with any changes in fair value charged or credited to staff costs in the income statement until the awards are
exercised. Where forfeitures occur prior to vesting that are attributable to factors other than a failure to satisfy service
condit
ions or market-based performance cond
it
ions, the cumulat
ive charge incurred up to the date of forfeiture is credited
to the income statement.
30. Share-based payments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
223
Directors’ Report and Financ
ial Statements 2024
Other accounting estimates and judgements
Share-based payments involve judgement and estimat
ion uncerta
inty exists when determin
ing the expenses and carry
ing
values of share awards at the balance sheet date.
•
LTIP awards are determined using an estimat
ion of the probab
il
ity of meet
ing certain metrics over a three-year
performance period using the Monte Carlo simulat
ion model.
•
Deferred shares are determined using an estimat
ion of expected d
iv
idends.
•
Sharesave Plan valuations are determined using a binom
ial opt
ion-pric
ing model.
The Group operates a number of share-based arrangements for its executive directors and employees. Details of the
share-based payment charge are set out below.

| 2024¹ | 2023¹
| Total | Total
| $mill ion | $mill ion
Deferred share awards | 125 | 99
Other share awards | 96 | 75
Total share-based payments 1,2 | 221 | 174

1
No forfeiture assumed
2
Includes $2 mill
ion (2023: $1 m
ill
ion) of share-based payments reported
in ‘other staff costs’. This reﬂects Bank Group’s requirement under IFRS 2 to account for
cash-settled awards made to employees of Bank Group settled by Standard Chartered PLC with payments linked to PLC’s share price as equity-settled awards
Discret
ionary 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, includ
ing d
irectors and former
executive directors:

Award type | Descript ion and performance measures | Valuation
Long Term | The vesting of awards granted in 2024, 2023 and 2022 are | The fair value of the relative TSR component is calculated
Incentive Plan | subject to the following performance measures: | using the probabil ity of meet ing the measures over a
(LTIP) awards | • relative total shareholder return (TSR); | three-year performance period, using a Monte Carlo
| • return on tangible equity (RoTE) (with a Common Equity | simulat ion model.
| Tier 1 (CET1) underpin); and | The value of the remain ing components is based on the
| • strategic measures (includ ing targets set for susta inab il ity expected performance against the RoTE and strategic |
| linked to business strategy) | measures in the scorecard and the resulting estimated
| Each measure is assessed independently over a three-year | number of shares expected to vest at each reporting date.
| period. LTIP awards have an ind iv idual conduct gateway | These combined values are used to determine the
| requirement that results in the award lapsing if not met. | accounting charge.
|  | No div idend equ ivalents accrue for the LTIP awards made in
|  | 2024, 2023 or 2022 and the fair value takes this into account,
|  | calculated by reference to market consensus div idend y ield.
Deferred | Used to deliver: | The fair value for deferred shares, which are granted to
shares | • the deferred portion of year-end variable remuneration, | employees who are not categorised as material risk takers,
| in line with both market practice and regulatory | is based on 100 per cent of the face value of the shares at
| requirements. These awards vest in instalments on | the date of grant as the share price will reﬂect expectations
| anniversar ies of the award date spec if ied at the t ime | of all future div idends.
| of grant. This enables the Group to meet regulatory | For awards granted to material risk takers in 2024, the fair
| requirements relating to deferral levels, and is in line with | value of awards takes into account the lack of div idend
| market practice. | equivalents, calculated by reference to market consensus
| • replacement buy-out awards to new joiners who forfe it | div idend y ield.
| 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 buy-outs, and is in line with market practice. |
| Deferred share awards are not subject to any |
| performance measures. |

The remain
ing l
ife of the 2021 Standard Chartered Share Plan during which new awards can be made is seven years.
30. Share-based payments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
224
Directors’ Report and Financ
ial Statements 2024
LTIP awards

| 2024 | 2023
Grant date | 12-March | 13-March
Share price at grant date (£) | 6.60 | 7.40
Vesting period (years) | 3-7 | 3-7
Expected div ided y ield (%) | 4.2 | 3.1
Fair value (RoTE) (£) | 1.55,1.61,1.68 | 1.91, 1.85
Fair value (TSR) (£) | 0.95,1.01,1.06 | 1.08, 1.04
Fair value (Strategic) (£) | 2.06,2.15,2.24 | 2.54, 2.46

Deferred shares – year-end

| 2024
Grant date | 17 June |  |  | 11 March |
Share price at grant date (£) | 7.24 |  |  | 6.56 |
Vesting period (years) | Expected div idend | Fair value (£) | Expected div | idend | Fair value (£)
| yield (%) |  |  | yield (%) |
1-3 years | N/A |  | 9.17 | 4.2, 4.2 | 7.65, 8.30
1-5 years | 3.8, 3.8, 3.8 | 8.05, 8.20, 8.35 |  | 4.2, 4.2, NA | 7.19, 7.49, 8.30
3-7 years |  |  |  | 4.2, 4.2 | 6.49, 6.76

| 2023
Grant date | 18 September | 19 June | 13 March
Share price at grant date |  |  |
(£) | 7.43 | 6.75 | 7.40

| Expected div idend | Fair value | Expected div idend | Fair value | Expected div idend |
Vesting period (years) | yield (%) | (£) | yield (%) | (£) | yield (%) | Fair value (£)
1-3 years | N/A | 7.43 | 3.3 | 6.75 | 3.1 | 7.40
1-5 years | 3.0 | 6.51 | 3.3, 3.3 | 5.83, 6.23 | 3.1, 3.1 | 6.85, 6.65
3-7 years |  |  |  |  | 3.1,3.1,3.1,3.1 | 6.65, 6.75, 6.35, 6.16

Deferred shares – buy-outs

| 2024
Grant date | 18-Nov | 23-Sep | 17-Jun | 11-Mar
Share price at grant date (£) | 9.43 | 7.59 | 7.24 | 6.56

| Expected |  | Expected |  | Expected |  | Expected |
| div idend y ield |  | div idend y ield |  | div idend y ield |  | div idend y ield |
Vesting period (years) | (%) | Fair value (£) | (%) | Fair value (£) | (%) | Fair value (£) | (%) | Fair value (£)
3 months |  |  | 4.2 | 9.59 | 3.8 | 9.07 | 4.2 | 8.22
4 months | 4.2 | 11.83 |  |  |  |  |  |
6 months |  |  | 4.2 | 9.49 | 3.8 | 8.99 | 4.2 | 8.14
7 months | 4.2 | 11.69 |  |  |  |  |  |
9 months |  |  | 4.2 | 9.4 | 3.8 | 8.90 | 4.2 | 8.06
10 months |  |  |  |  |  |  |  |
1 year | 4.2 | 11.22, 11.36 | 4.2 | 9.02, 9.11, | 3.8 | 8.58, 8.66, | 4.2 | 7.73, 7.81,
|  |  |  | 9.21, 9.30 |  | 8.74 |  | 7.89, 7.97
1.4 years |  |  |  |  |  |  |  |
2 years | 4.2 | 10.77, 10.90 | 4.2 | 8.65, 8.74, | 3.8 | 8.26, 8.34 | 4.2 | 7.42, 7.50,
|  |  |  | 8.83, 8.93 |  |  |  | 7.57, 7.65
2.4 years |  |  |  |  |  |  |  |
3 years | 4.2 | 10.46 | 4.2 | 8.39 |  |  | 4.2 | 7.20, 7.34
4 years | 4.2 | 10.04 |  |  |  |  | 4.2 | 7.05

5 years
30. Share-based payments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
225
Directors’ Report and Financ
ial Statements 2024

| 2023
Grant date | 20-Nov | 18-Sep | 19-Jun | 13-Mar
Share price at grant date (£) | 6.60 | 7.43 | 6.75 | 7.40

| Expected |  | Expected |  | Expected |  | Expected |
| div idend y ield | Fair value | div idend y ield | Fair value | div idend y ield | Fair value | div idend y ield |
Vesting period (years) | (%) | (£) | (%) | (£) | (%) | (£) | (%) | Fair value (£)
3 months |  |  | 3.0 | 7.38 | 3.3 | 6.7 | 3.1 | 7.34
4 months | 3.0 | 6.54 |  |  |  |  |  |
6 months |  |  | 3.0 | 7.32 | 3.3 | 6.64 |  |
7 months | 3.0 | 6.49 |  |  |  |  |  |
9 months |  |  | 3.0 | 7.27 | 3.3 | 6.48, |  |
|  |  |  |  |  | 6.59 |  |
10 months | 3.0 | 6.44 |  |  |  |  |  |
1 year | 3.0 | 6.25, | 3.0 | 7.06, 7.11, | 3.3 | 6.18, | 3.1 | 7.12, 7.18
|  | 6.30, |  | 7.16, 7.22 |  | 6.38, |  |
|  | 6.35, 6.39 |  |  |  | 6.43, |  |
|  |  |  |  |  | 6.54 |  |
2 years | 3.0 | 6.12, 6.16, | 3.0 | 6.85, 6.9, | 3.3 | 5.98, | 3.1 | 6.91, 6.96
|  | 6.21 |  | 6.95, 7.01 |  | 6.18, 6.33 |  |
3 years | 3.0 | 5.94, | 3.0 | 6.65, 6.7, | 3.3 | 5.79, | 3.1 | 6.70, 6.75
|  | 5.98, 6.03 |  | 6.8 |  | 5.98, 6.13 |  |
4 years | 3.0 | 5.76 |  |  |  |  | 3.1 | 6.50, 6.55
5 years |  |  |  |  |  |  | 3.1 | 6.35

All Employee Sharesave Plans
Under the 2023 Sharesave Plan, employees may open a savings contract and save up to £500 (increased from £250 since
2024) per month over three years to purchase ordinary shares in the Company at a discount of up to 20 per cent (the ‘option
exercise price’). The discount applies to the higher of the 5-day average share price prior to the inv
itat
ion or the closing share
price on the last trading day prior to the inv
itat
ion. At the end of the savings contract they have a period of six months to
exercise the option. There are no performance measures attached to Sharesave options and no exercise price is payable to
receive an option. In some countries in which the Group operates, it is not possible to operate equity-settled Sharesave,
typically due to securit
ies law and regulatory restr
ict
ions. In these countr
ies, where possible, the Group offers an equivalent
cash-based alternative to its employees.
The remain
ing l
ife of the 2023 Sharesave Plan during which new awards can be made is nine years.
Valuation – Sharesave:
Options under the Sharesave plans are valued using a binom
ial opt
ion-pric
ing model. The same fa
ir value is applied to all
employees includ
ing execut
ive directors. The fair value per option granted and the assumptions used in the calculation are
as follows:
All Employee Sharesave Plan (Sharesave)

| 2024 | 2023
Grant date | 23 | 18
| September | September
Share price at grant date (£) | 7.59 | 7.35
Exercise price (£) | 6.10 | 5.88
Vesting period (years) | 3 | 3
Expected volatil ity (%) | 32.9 | 36.7
Expected option life (years) | 3.5 | 3.5
Risk-free rate (%) | 3.88 | 4.48
Expected div idend y ield (%) | 4.2 | 3.0
Fair value (£) | 2.73 | 3.05

The expected volatil
ity
is based on histor
ical volat
il
ity over the last three years, or the three years pr
ior to grant. The expected
life is the average expected period to exercise. The risk-free rate of return is the yield on zero-coupon UK Government bonds
of a term consistent with the assumed option life. The expected div
idend y
ield is calculated by reference to market consensus
div
idend y
ield.
30. Share-based payments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
226
Directors’ Report and Financ
ial Statements 2024
Lim
its
An award shall not be granted under the 2021 Plan in any calendar year if, at the time of its proposed grant, it would cause
the number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years, ending with that
calendar year, under the 2021 Plan and under any other discret
ionary share plan operated by Standard Chartered PLC to
exceed 5 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time.
An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed
grant, it would cause the number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years
ending with that calendar year, under the 2021 Plan or 2023 Sharesave Plan and under any other employee share plan
operated by Standard Chartered PLC to exceed 10 per cent of the ordinary share capital of Standard Chartered PLC in issue
at that time.
An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed
grant, it would cause the number of Standard Chartered PLC ordinary shares which may be issued or transferred pursuant
to awards then outstanding under the 2021 Plan or 2023 Sharesave Plan as relevant to exceed such number as represents
10 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time.
The number of Standard Chartered PLC ordinary shares which may be issued pursuant to awards granted to an ind
iv
idual
under the 2021 or 2023 Plan in any 12-month period must not exceed 1 per cent of the ordinary share capital of Standard
Chartered PLC in issue at that time.
Standard Chartered PLC has been granted a waiver from strict compliance with Rules 17.03A, 17.03B(1), 17.03E and 17.03(18)
of the Rules Governing the List
ing of Secur
it
ies on the Stock Exchange of Hong Kong. Deta
ils are set out in the market
announcement made on 4 May 2023.
Reconcil
iat
ion of share award movements for the year to 31 December 2024

| Discret ionary 1 |  | Weighted
|  |  |  | average
|  |  |  | Sharesave
|  | Deferred |  | exercise price
| LTIP | shares | Sharesave 4,5 | (£)
Outstanding at 1 January 2024 | 10,338,310 | 39,709,125 | 10,876,723 | 4.57
Granted 2,3 | 2,058,432 | 21,439,877 | 6,550,317 | –
Lapsed 6 | (2,590,658) | (1,362,325) | (1,011,865) | 4.91
Exercised | (877,142) | (16,687,307) | (2,618,370) | 3.44
Outstanding at 31 December 2024 | 8,928,942 | 43,099,370 | 13,796,805 | 5.49
Total number of securit ies ava ilable for issue under the plan | 8,928,942 | 43,099,370 | 13,796,805 |
Percentage of the issued shares this represents as at 31 December 2024 | 0.37 | 1.78 | 0.57 | 5.49
Exercisable as at 31 December 2024 | – | 245,006 | 738,353 | 3.82
Range of exercise prices (£) 3 | – | – | 3.67 – 6.10 |
Intrins ic value of vested but not exerc ised options ($ mill ion) | 0.00 | 3.03 | 5.60 |
Weighted average contractual remain ing l ife (years) | 7.28 | 8.19 | 2.59 |
Weighted average share price for awards exercised during the period (£) | 6.60 | 6.68 | 8.25 |

1
Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards.
2
2,053,159 (LTIP) granted on 12 March 2024; 5,059 (LTIP) granted as a notional div
idend on 1 March 2024; 214 (LTIP) granted as a not
ional div
idend on 8 August 2024.
20,352,568 (Deferred shares) granted on 11 March 2024; 181,907 (Deferred shares) granted as a notional div
idend on 1 March 2024; 452,138 (Deferred shares) granted
on 17 June 2024; 69,815 (Deferred shares) granted as a notional div
idend on 8 August 2024; 184,526 (Deferred shares) granted on 23 September 2024; 198,923
(Deferred shares) granted on 18 November 2024. 6,550,317 (Sharesave) granted on 23 September 2024.
3
No discret
ionary awards (LTIP or deferred/buy-out awards) have been granted
in the form of options since June 2015. For histor
ic awards granted as opt
ions and
exercised in the period to 31 Dec 2024, the exercise price of deferred/ buy-out shares options was nil.
4
For Sharesave granted in 2024 the exercise price is £6.10 per share, a 20% discount from the closing share price on 16 August 2024 (£7.624). The average of the closing
prices over the ﬁve days to the inv
itat
ion date of 19 August 2024 was £7.421.
5
All Sharesave awards are in the form of options. The exercise price of Sharesave options exercised is £ 6.10 for options granted in 2024, £ 5.88 for options granted in 2023,
£4.23 for options granted in 2022, £3.67 for options granted in 2021, and £3.14 for options granted in 2020.
6
No options or share awards were cancelled in the period.
See page 234 and 237 to 238 for informat
ion spec
if
ic to D
irectors
30. Share-based payments continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
227
Directors’ Report and Financ
ial Statements 2024
Reconcil
iat
ion of share award movements for the year to 31 December 2023

| Discret ionary 1 |  | Weighted
|  |  |  | average
|  |  |  | Sharesave
|  | Deferred |  | exercise price
| LTIP | shares | Sharesave | (£)
Outstanding at 1 January 2023 | 10,739,911 | 39,721,124 | 9,959,559 | 3.85
Granted 2,3 | 2,019,504 | 18,097,855 | 3,994,289 | -
Lapsed | (1,815,215) | (1,067,731) | (1,021,483) | 4.17
Exercised | (605,890) | (17,042,123) | (2,055,642) | 3.81
Outstanding at 31 December 2023 | 10,338,310 | 39,709,125 | 10,876,723 | 4.57
Total number of securit ies ava ilable for issue under the plan | 10,338,310 | 39,709,125 | 10,876,723 | 4.57
Percentage of the issued shares this represents as at 31 December 2023 | 0.39 | 1.49 | 0.41 |
Exercisable as at 31 December 2023 | - | 670,108 | 1,319,426 | 3.17
Range of exercise prices (£) 3 | - | - | 3.14 - 5.88 |
Intrins ic value of vested but not exerc ised options ($ mill ion) | 0.00 | 5.69 | 5.88 |
Weighted average contractual remain ing l ife (years) | 5.79 | 8.16 | 2.39 |
Weighted average share price for awards exercised during the period (£) | 6.95 | 7.04 | 6.68 |

1
Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards
2
2,011,685 (LTIP) granted on 13 March 2023, 6,501 (LTIP) granted as a notional div
idend on 1 March 2023, 1318 (LTIP) granted as a not
ional div
idend on 1 September 2023,
17,360,108 (Deferred shares) granted on 13 March 2023, 96,805 (Deferred shares) granted as a notional div
idend on 1 March 2023, 288,238 (Deferred shares) granted on
19 June 2023, 218,497 (Deferred shares) granted on 18 September 2023, 41,298 (Deferred shares) granted as a notional div
idend on 1 September 2023, 92,909 (Deferred
shares) granted on 20 November 2023; 3,994,289 (Sharesave) granted on 18 September 2023 under the 2023 Sharesave Plan
3
For Sharesave granted in 2023 the exercise price is £5.88 per share, a 20% discount from the average of the closing prices over the ﬁve days to the inv
itat
ion date of
21 August 2023. The closing share price on 18 August 2013 was £7.214.
For informat
ion spec
if
ic to D
irectors, please look at 293 and 294 of the 2023 Standard Chartered Bank Directors’ Report and
Financ
ial Statements.
31. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
Accounting policy
Associates and jo
int arrangements
The Group did not have any contractual interest in jo
int operat
ions.
Investments in associates and jo
int ventures are accounted for by the equ
ity method of accounting and are in
it
ially
recognised at cost. The Group’s investment in associates and jo
int ventures
includes goodwill ident
iﬁed on acqu
is
it
ion
(net of any accumulated impa
irment loss).
The Group’s share of its associates’ and jo
int ventures’ post-acqu
is
it
ion proﬁts or losses is recognised in the income statement,
and its share of post-acquis
it
ion movements in other comprehensive income is recognised in reserves. The cumulative
post-acquis
it
ion movements are adjusted against the carrying amount of the investment. When the Group’s share of losses
in an associate or a jo
int venture equals or exceeds
its interest in the associate, includ
ing any other unsecured rece
ivables, the
Group does not recognise further losses, unless it has incurred obligat
ions or made payments on behalf of the assoc
iate or
joint venture.
Unrealised gains and losses on transactions between the Group and its associates and jo
int ventures are el
im
inated to the
extent of the Group’s interest in the associates and jo
int ventures. At each balance sheet date, the Group assesses whether
there is any object
ive ev
idence of impa
irment
in the investment in associates and jo
int ventures. Such ev
idence includes a
sign
iﬁcant or prolonged decl
ine in the fair value of the Group’s investment in an associate or jo
int venture below
its cost,
among other factors.
Sign
iﬁcant account
ing estimates and judgements
The Group applies judgement in determin
ing
if it has control, jo
int control or s
ign
iﬁcant
inﬂuence over subsid
iar
ies, jo
int
ventures and associates respectively. These judgements are based upon ident
ify
ing the relevant activ
it
ies of counterparties,
being those activ
it
ies that sign
iﬁcantly affect the ent
it
ies returns, and further mak
ing a decis
ion of
if the Group has control
over those entit
ies, joint control, or has s
ign
iﬁcant
inﬂuence (being the power to partic
ipate
in the ﬁnanc
ial and operat
ing
policy decis
ions but not control them).
These judgements are at times determined by equity holdings, and the voting rights associated with those holdings.
However, further considerat
ions
includ
ing but not l
im
ited to board seats, adv
isory committee members and special
ist
knowledge of some decis
ion-makers are also taken
into account. Further judgement is required when determin
ing
if the
Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity.
Judgement is required to determine the relative size of the Group’s shareholding when compared to the size and dispers
ion
of other shareholders.
31. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
228
Directors’ Report and Financ
ial Statements 2024
Impairment testing of investments in associates and jo
int ventures, and on a Company level
investments in subsid
iar
ies is
performed if there is a possible ind
icator of
impa
irment. Judgement
is used to determine if there is object
ive ev
idence of
impa
irment. Objective ev
idence may be observable data such as losses incurred on the investment when applying the equity
method, the granting of concessions as a result of ﬁnanc
ial d
iff
iculty, or breaches of contracts/regulatory ﬁnes of the
associate or jo
int venture. Further judgement
is required when consider
ing broader
ind
icators of
impa
irment such as losses
of active markets or ratings downgrades across key markets in which the associate or jo
int venture operate
in.
Impairment testing is based on estimates includ
ing forecast
ing the expected cash ﬂows from the investments, growth rates,
terminal values and the discount rate used in calculation of the present values of those cash ﬂows. The estimat
ion of future
cash ﬂows and the level to which they are discounted is inherently uncertain and requires sign
iﬁcant judgement.
Business combinat
ions
The acquis
it
ion method of accounting is used to account for the acquis
it
ion of subsid
iar
ies by the Group.
In the Company’s ﬁnancial statements,
investment in subsid
iar
ies, associates and jo
int ventures are held at cost less
impa
irment and d
iv
idends from pre-acqu
is
it
ion proﬁts received prior to 1 January 2009, if any. Inter-company transactions,
balances and unrealised gains and losses on transactions between Group companies are elim
inated
in the Group accounts.

| 2024 | 2023
Investments in subsid iary undertak ings | $mill ion | $mill ion
As at 1 January | 10,066 | 10,300
Addit ions 1 | 601 | 529
Disposal | (7) | (465)²
Impairment release/(charge) | 11 | (298)³
As at 31 December | 10,671 | 10,066

1
Includes issuances of $580.4 mill
ion to Standard Chartered Bank (S
ingapore) Lim
ited (31 December 2023 Includes
issuances of $124 mill
ion to Standard Chartered Bank
AG, $299 mill
ion to Standard Chartered Bank (S
ingapore) Lim
ited), $47 m
ill
ion to SC Ventures Hold
ings Lim
ited, $40 m
ill
ion to Standard Chartered Cap
ital Ltd and $18
mill
ion to Standard Chartered Afr
ica Ltd)
2
Includes disposal of SC Ventures Holdings Lim
ited ($464 m
ill
ion)
3
Primar
ily relates to the net of
impa
irment charge of $388 m
ill
ion on account of decrease
in the valuation of SC Ventures Holdings Lim
ited and
impa
irment release of $78
mill
ion
in the valuation of Standard Chartered Bank AG
At 31 December 2024 the princ
ipal subs
id
iary undertak
ings, all ind
irectly held except for Standard Chartered Bank AG,
Standard Chartered Bank (Pakistan) Lim
ited, Standard Chartered Bank (Maur
it
ius) L
im
ited and 13.6 per cent of Standard
Chartered Bank (Singapore) Lim
ited, and pr
inc
ipally engaged
in the business of banking and provis
ion of other ﬁnancial
services, were as follows:

|  | Group interest in
Place of incorporation or registrat ion | Main areas of operation | ordinary share capital %
Standard Chartered Bank (Singapore) Lim ited, S ingapore | Singapore | 100
Standard Chartered Bank AG, Germany | Germany | 100
Standard Chartered Bank Malaysia Berhad, Malaysia | Malaysia | 100
Standard Chartered Bank Niger ia L im ited, N iger ia | Niger ia | 100
Standard Chartered Bank (Vietnam) Lim ited, V ietnam | Vietnam | 100
Standard Chartered Bank (Maurit ius) L im ited, Maur it ius | Maurit ius | 100
Standard Chartered Bank (Thai) Public Company Lim ited, Tha iland | Thailand | 99.87
Standard Chartered Bank (Pakistan) Lim ited, Pak istan | Pakistan | 98.99
Standard Chartered Bank Zambia PLC, Zambia | Zambia | 90.00
Standard Chartered Bank Botswana Lim ited, Botswana | Botswana | 75.83
Standard Chartered Bank Kenya Lim ited, Kenya | Kenya | 74.32
Standard Chartered Bank Nepal Lim ited, Nepal | Nepal | 70.21
Standard Chartered Bank Ghana PLC, Ghana | Ghana | 69.42

A complete list of subsid
iary undertak
ing is included in Note 39.
The Group does not have any material non-controlling interest except as listed above, which contribute $69 mill
ion
(31 December 2023: $58 mill
ion) of the proﬁt attr
ibutable to non-controlling interest and $231 mill
ion (31 December 2023:
$172 mill
ion) of the equ
ity attributable to non-controlling interests.
During 2024 the Group disposed of its investments in subsid
iar
ies and the gain/loss on disposal was SCB Zimbabwe Lim
ited &
Africa Enterprise Network Trust (loss:$171.44 mill
ion
includ
ing translat
ion adjustment loss: $190.42 mill
ion), SCB Angola S.A.
(loss:$26.37 mill
ion
includ
ing translat
ion adjustment loss:$30.61 mill
ion) and SCB S
ierra Leone Lim
ited (loss: $18.90 m
ill
ion
includ
ing translat
ion adjustment loss:$25.08 mill
ion).
31. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
229
Directors’ Report and Financ
ial Statements 2024
While the Group’s subsid
iar
ies are subject to local statutory capital and liqu
id
ity requirements in relation to foreign exchange
remittance, these restrict
ions ar
ise in the normal course of business and do not sign
iﬁcantly restr
ict the Group’s abil
ity to
access or use assets and settle liab
il
it
ies of the Group.
The Group does not have sign
iﬁcant restr
ict
ions on
its abil
ity to access or use
its assets and settle its liab
il
it
ies other than
those resulting from the regulatory framework with
in wh
ich the banking subsid
iar
ies operate. These frameworks require
banking operations to keep certain levels of regulatory capital, liqu
id assets, exposure l
im
its and comply w
ith other required
ratios. These restrict
ions are summar
ised below:
Regulatory and liqu
id
ity requirements
The Group’s subsid
iar
ies are required to mainta
in m
in
imum cap
ital, leverage ratios, liqu
id
ity and exposure ratios which
therefore restrict the abil
ity of these subs
id
iar
ies to distr
ibute cash or other assets to the parent company.
The subsid
iar
ies are also required to mainta
in balances w
ith central banks and other regulatory authorit
ies
in the
countries in which they operate. At 31 December 2024, the total cash and balances with central banks was $56.7 bill
ion
(31 December 2023: $64.2 bill
ion) of wh
ich $2.9 bill
ion (31 December 2023: $3 b
ill
ion)
is restricted.
Statutory requirements
The Group’s subsid
iar
ies are subject to statutory requirements not to make distr
ibut
ions of capital and unrealised proﬁts to
the parent company, generally to mainta
in solvency. These requ
irements restrict the abil
ity of subs
id
iar
ies to remit div
idends
to the Group. Certain subsid
iar
ies are also subject to local exchange control regulations which provide for restrict
ions on
exporting capital from the country other than through normal div
idends.
Contractual requirements
The encumbered assets in the balance sheet of the Group’s subsid
iar
ies are not available for transfer around the Group.
Share of proﬁt from investment in associates and jo
int ventures compr
ises:

| 2024 | 2023
| $mill ion | $mill ion
Loss from investment in jo int ventures | – | (7)
Proﬁt from investment in associates | 8 | 3
Total | 8 | (4)

Group
Interests in associates and jo
int ventures

| 2024 | 2023
| $mill ion | $mill ion
As at 1 January | 81 | 143
Exchange translation difference | 1 | –
Addit ions 1 | 5 | 1
Share of proﬁts | 8 | (4)
Disposals | – | (55) 2
Div idend rece ived | (6) | (4)
Share of FVOCI and Other reserves | (5) | –
Other Movements | (9) | –
As at 31 December | 75 | 81

1
Includes non-cash considerat
ion of $3.6 m
ill
ion (convert
ible notes) from Verif
ied Impacts Hold
ings Pte Ltd
2
Disposal of interest in associates due to change in ownership. Associates - CurrencyFair Lim
ited ($40 m
ill
ion), F
intech for International Development Ltd ($1 mill
ion),
Olea Global Pte. Ltd. ($14 mill
ion)
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
230
Directors’ Report and Financ
ial Statements 2024
32. Structured entit
ies
Accounting policy
Structured entit
ies are consol
idated when the substance of the relationsh
ip between the Group and the structured ent
ity
ind
icates the Group has power over the contractual relevant act
iv
it
ies of the structured entity, is exposed to variable returns,
and can use that power to affect the variable return exposure.
In determin
ing whether to consol
idate a structured entity to which assets have been transferred, the Group takes into
account its abil
ity to d
irect the relevant activ
it
ies of the structured entity. These relevant activ
it
ies are generally evidenced
through a unilateral right to liqu
idate the structured ent
ity, investment in a substantial proportion of the securit
ies
issued by
the structured entity or where the Group holds specif
ic subord
inate securit
ies that embody certa
in controlling rights. The
Group may further consider relevant activ
it
ies embedded with
in contractual arrangements such as call opt
ions which give
the practical abil
ity to d
irect the entity, special relationsh
ips between the structured ent
ity and investors, and if a single
investor has a large exposure to variable returns of the structured entity.
Judgement is required in determin
ing control over structured ent
it
ies. The purpose and des
ign of the entity is considered,
along with a determinat
ion of what the relevant act
iv
it
ies are of the entity and who directs these. Further judgements are
made around which investor is exposed to and absorbs the variable returns of the structured entity. The Group will have to
weigh up all of these facts to consider whether the Group, or another involved party is acting as a princ
ipal
in its own right or
as an agent on behalf of others. Judgement is further required in the ongoing assessment of control over structured entit
ies,
specif
ically
if market condit
ions have an effect on the var
iable return exposure of different investors.
Interests in consolidated structured entit
ies:
A structured entity is consolidated into the Group’s ﬁnanc
ial statements where
the Group controls the structured entity, as per the determinat
ion
in the accounting policy above. The following table
presents the Group’s interests in consolidated structured entit
ies.
The following table presents the Group's interests in consolidated structured entit
ies.

| 2024 | 2023
| $mill ion | $mill ion
Princ ipal and other structured ﬁnance | 239 | 116
Total | 239 | 116

Interests in unconsolidated structured entit
ies:
Unconsolidated structured entit
ies are all structured ent
it
ies that are not controlled by the Group. The Group enters
into
transactions with unconsolidated structured entit
ies
in the normal course of business to facil
itate customer transact
ions and
for specif
ic
investment opportunit
ies. An
interest in a structured entity is contractual or non-contractual involvement which
creates variab
il
ity of the returns of the Group aris
ing from the performance of the structured ent
ity.
The table below presents the carrying amount of the assets recognised in the ﬁnanc
ial statements relat
ing to variable
interests held in unconsolidated structured entit
ies, the max
imum exposure to loss relating to those interests and the total
assets of the structured entit
ies. Max
imum exposure to loss is primar
ily l
im
ited to the carry
ing amount of the Group’s on-
balance sheet exposure to the structured entity. For derivat
ives, the max
imum exposure to loss represents the on-balance
sheet valuation and not the notional amount. For commitments and guarantees, the maximum exposure to loss is the
notional amount of potential future losses.
32. Structured entit
ies cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
231
Directors’ Report and Financ
ial Statements 2024

| 2024 |  | 2023
| Asset- |  |  | Princ ipal |  |  | Asset- |  |  | Princ ipal |  |
| backed |  | Structured | Finance | Other |  | backed |  | Structured | Finance | Other |
| securit ies | Lending | Finance | funds | activ it ies | Total | securit ies | Lending | Finance | funds | activ it ies | Total
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Group's interest – assets |  |  |  |  |  |  |  |  |  |  |  |
Financ ial assets held |  |  |  |  |  |  |  |  |  |  |  |
at fair value through |  |  |  |  |  |  |  |  |  |  |  |
proﬁt or loss | 358 | 71 | 178 | 86 | – | 693 | 368 | 172 | 139 | 75 | – | 754
Loans and advances/ |  |  |  |  |  |  |  |  |  |  |  |
Investment securit ies |  |  |  |  |  |  |  |  |  |  |  |
at amortised cost | 11,372 | 9,105 | 8,648 | – | 97 | 29,222 | 13,184 | 9,298 | 7,210 | – | 190 | 29,882
Investment securit ies |  |  |  |  |  |  |  |  |  |  |  |
(fair value through |  |  |  |  |  |  |  |  |  |  |  |
other comprehensive |  |  |  |  |  |  |  |  |  |  |  |
income) | 1,421 | – | – | – | – | 1,421 | 1,977 | – | – | – | – | 1,977
Other assets | – | – | – | – | – | – | – | – | 34 | – | – | 34
Total assets | 13,151 | 9,176 | 8,826 | 86 | 97 | 31,336 | 15,529 | 9,470 | 7,383 | 75 | 190 | 32,647
Off-balance sheet | – | 6,369 | 5,554 | 61 | 73 | 12,057 | – | 3,971 | 4,752 | – | 20 | 8,743
Group's maximum |  |  |  |  |  |  |  |  |  |  |  |
exposure to loss | 13,151 | 15,545 | 14,380 | 147 | 170 | 43,393 | 15,529 | 13,441 | 12,135 | 75 | 210 | 41,390
Total assets of |  |  |  |  |  |  |  |  |  |  |  |
structured entit ies | 86,906 | 9,492 | 10,748 | 115 | - | 107,261 | 113,622 | 9,470 | 7,383 | 89 | 1,688 | 132,252

The main types of activ
it
ies for which the Group util
ises unconsol
idated structured entit
ies cover synthet
ic credit default
swaps for managed investment funds (includ
ing spec
ial
ised Pr
inc
ipal F
inance funds), portfolio management purposes,
structured ﬁnance and asset-backed securit
ies. These are deta
iled as follows:
•
Asset-backed securit
ies (ABS):
The Group also has investments in asset-backed securit
ies
issued by third-party sponsored
and managed structured entit
ies. For the purpose of market mak
ing and at the discret
ion of ABS trad
ing desk, the Group
may hold an immater
ial amount of debt secur
it
ies from structured ent
it
ies or
ig
inated by cred
it portfolio management.
This is disclosed in the ABS column above.
Portfolio management (Group sponsored entit
ies): For the purposes of portfol
io management, the Group purchased credit
protection via synthetic credit default swaps from note-issu
ing structured ent
it
ies. Th
is credit protection creates credit risk
which the structured entity and subsequently the end investor absorbs. The referenced assets remain on the Group’s
balance sheet as they are not assigned to these structured entit
ies. The Group cont
inues to own or hold all of the risks
and returns relating to these assets. The credit protection obtained from the regulatory-compliant securit
isat
ion only
serves to protect the Group against losses upon the occurrence of elig
ible cred
it events and the underlying assets are not
derecognised from the Group’s balance sheet. The Group does not hold any equity interests in the structured entit
ies but
may hold an ins
ign
if
icant amount of the
issued notes for market making purposes. This is disclosed in the ABS section
above. The proceeds of the notes’ issuance are typically held as cash collateral in the issuer’s account operated by a trustee
or invested in AAA-rated government-backed securit
ies to collateral
ise the structured entit
ies swap obl
igat
ions to the
Group, and to repay the princ
ipal to
investors at maturity. The structured entit
ies re
imburse the Group on actual losses
incurred, through the use of the cash collateral or realisat
ion of the collateral secur
ity. Correspondingly, the structured
entit
ies wr
ite down the notes issued by an equal amount of the losses incurred, in reverse order of senior
ity. All fund
ing is
committed for the life of these vehicles and the Group has no ind
irect exposure
in respect of the vehicles’ liqu
id
ity posit
ion.
The Group has reputational risk in respect of certain portfolio management vehicles and investment funds either because
the Group is the arranger and lead manager or because the structured entit
ies have Standard Chartered brand
ing.
•
Lending:
Lending comprises secured lending in the normal course of business to third parties through structured entit
ies
•
Structured Finance:
Structured ﬁnance comprises interests in transaction that the Group or, more usually, a customer has
structured, using one or more structured entit
ies, wh
ich provide beneﬁc
ial arrangements for customers. The Group’s
exposure primar
ily represents the prov
is
ion of fund
ing to these structures as a ﬁnanc
ial
intermed
iary, for wh
ich it receives a
lender’s return. The transactions largely relate to real estate ﬁnanc
ing and the prov
is
ion of a
ircraft leasing and ship ﬁnance
•
Princ
ipal F
inance Fund:
The Group’s exposure to Princ
ipal F
inance Funds represents committed or invested capital in
unleveraged investment funds, primar
ily
invest
ing
in pan-Asian infrastructure, real estate and private equity.
•
Other activ
it
ies:
Other activ
it
ies include structured entit
ies created to support marg
in ﬁnanc
ing transact
ions, the
reﬁnancing of ex
ist
ing cred
it and debt facil
it
ies, as well as setting up of bankruptcy remote structured entit
ies.
32. Structured entit
ies cont
inued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
232
Directors’ Report and Financ
ial Statements 2024
In the above table, the Group determined the total assets of the structured entit
ies us
ing following bases:
•
Asset Backed Securit
ies, Pr
inc
ipal F
inance, and Other activ
it
ies are based on the published total assets of the
structured entit
ies
•
Lending and Structured Finance are estimated based on the Group's loan values to the structured entit
ies.
33. Cash ﬂow statement
Adjustment for non-cash items and other adjustments included with
in
income statement

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Amortisat ion of d iscounts and premiums of investment securit ies | (420) | (509) | (259) | (286)
Interest expense on subordinated liab il it ies | 597 | 602 | 682 | 876
Interest expense on senior debt securit ies in issue | 651 | 516 | 1,077 | 820
Other non-cash items | (87) | 142 | (29) | (126)
Net loss/(gain) on sale of businesses¹ | 214 | (448) | (26) | (6)
Pension costs for deﬁned beneﬁt schemes | 37 | 41 | 22 | 25
Share-based payment costs | 219 | 175 | 136 | 116
Impairment losses/(releases) on loans and advances and other credit risk |  |  |  |
provis ions | 15 | (58) | (114) | (81)
Div idend income from subsid iar ies | – | – | (1,052) | (2,060)
Other impa irment | 410 | 42 | 273 | 314
Gain on disposal of property, plant and equipment | (3) | (12) | (3) | –
Loss on disposal of FVOCI & AMCST ﬁnanc ial assets | 190 | 178 | 154 | 114
Depreciat ion and amort isat ion | 656 | 647 | 403 | 399
Fair value changes taken to Income statement | (1,418) | (1,531) | (1,226) | (940)
Foreign Currency revaluation | 54 | 104 | (39) | 45
(Proﬁt)/Loss from associates and jo int ventures | (8) | 4 | – | –
Total | 1,107 | (107) | (1) | (790)

1
refer note 6 on page 138.
Change in operating assets

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
(Increase)/decrease in derivat ive ﬁnancial instruments | (25,886) | 9,954 | (24,384) | 8,873
Increase in debt securit ies, treasury b ills and equity shares held at fair value |  |  |  |
through proﬁt or loss | (6,173) | (10,371) | (4,319) | (3,059)
(Increase)/decrease in loans and advances to banks and customers | (7,165) | (2,412) | (970) | 5,247
Net (increase)/decrease in prepayments and accrued income | (153) | 75 | (167) | 209
Net decrease in other assets | 4,587 | 7,160 | 3,679 | 11,834
Total | (34,790) | 4,406 | (26,161) | 23,104

Change in operating liab
il
it
ies

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Increase/(decrease) in derivat ive ﬁnancial instruments | 23,137 | (11,197) | 22,001 | (10,275)
Net increase/(decrease) in deposits from banks, customer accounts, |  |  |  |
debt securit ies in issue and short posit ions | 2,008 | 2,419 | (4,981) | (9,347)
Increase in accruals and deferred income | 58 | 431 | 25 | 315
(Decrease)/ increase in amount due to parents/subsid iar ies/other related parties | (2,059) | 3,580 | (4,197) | 7,627
Net increase /(decrease) in other liab il it ies | 2,587 | 264 | 1,016 | (2,211)
Total | 25,731 | (4,503) | 13,864 | (13,891)

33. Cash ﬂow statement continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
233
Directors’ Report and Financ
ial Statements 2024
Disclosures

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Subordinated debt (includ ing accrued interest): |  |  |  |
Opening balance | 11,457 | 13,272 | 10,899 | 12,731
Proceeds from the issue | – | 18 | – | –
Interest paid | (569) | (714) | (528) | (583)
Repayment | (1,000) | (2,160) | (1,000) | (2,160)
Foreign exchange movements | (102) | 113 | (92) | 113
Fair value changes from hedge accounting | (4) | 215 | (4) | 215
Accrued Interest and Others | 575 | 713 | 528 | 583
Closing balance | 10,357 | 11,457 | 9,803 | 10,899

| Group | Company
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Senior debt (includ ing accrued interest): |  |  |  |
Opening balance | 7,860 | 5,154 | 7,827 | 4,777
Proceeds from the issue | 3,134 | 5,597 | 3,114 | 4,820
Interest paid | (282) | (235) | (282) | (235)
Repayment | (2,480) | (2,546) | (2,471) | (1,806)
Foreign exchange movements | (45) | 2 | (44) | 3
Fair value changes from hedge accounting | – | (1) | – | –
Accrued Interest and Others | 282 | (111) | 269 | 268
Closing balance | 8,469 | 7,860 | 8,413 | 7,827

34. Cash and cash equivalents
Accounting policy
Cash and cash equivalents includes:
•
Cash on hand and balances at central banks’ that are on demand or placements which are contractually due to mature
overnight only, except for restricted balances; and
•
Other balances listed in the table below, when they have less than three months’ maturity from the date of acquis
it
ion,
are not subject to contractual restrict
ions, are subject to
ins
ign
if
icant changes
in value, are highly liqu
id and are held for
the purpose of meeting short-term cash commitments. This includes products such as treasury bills and other elig
ible b
ills,
short-term government securit
ies, loans and advances to banks (
includ
ing reverse repos), and loans and advances to
customers (only non demand or non overnight placements at central banks), which are held for appropriate business
purposes. On demand accounts with non central banks are reported as part of ‘Loans & Advances to banks’.
The following balances have been ident
iﬁed by the Group and Company as be
ing cash and cash equivalents based on the
criter
ia descr
ibed above.

| Group |  | Company |
| 2024 | 2023 | 2024 | 2023
| $mill ion | $mill ion | $mill ion | $mill ion
Cash and balances at central banks | 56,665 | 64,198 | 45,233 | 52,758
Less: restricted balances | (2,859) | (3,050) | (1,160) | (1,311)
Treasury bills and other elig ible b ills | 4,938 | 3,298 | 529 | 896
Loans and advances to banks | 2,481 | 3,195 | 1,724 | 1,333
Loans and advances to customers | 16,364 | 20,475 | 500 | 68
Investments | 830 | 244 | 640 | 244
Amounts due from fellow group undertakings | 530 | – | 635 | –
Total | 78,949 | 88,360 | 48,101 | 53,988

Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
234
Directors’ Report and Financ
ial Statements 2024
35. Related party transactions
Directors and ofﬁcers
Details of directors’ remuneration and interests in shares are disclosed in the Note 37 Remuneration of Directors.
IAS 24 Related party disclosures requires the following addit
ional
informat
ion for key management compensat
ion.
Key management comprises non-executive directors, executive directors of Standard Chartered PLC, the Court
directors of Standard Chartered Bank and the persons discharg
ing manager
ial responsib
il
it
ies (PDMR) of Standard
Chartered PLC Group.

| 2024 | 2023
| $mill ion | $mill ion
Salaries, allowances and beneﬁts in kind | 40 | 41
Share-based payments | 38 | 26
Bonuses paid or receivable | 7 | 5
Terminat ion beneﬁts | 2 | –
Total | 87 | 72

Transactions with directors and others
As at 31 December 2024, the total amounts to be disclosed under the Companies Act 2006 (the Act) and the List
ing Rules of
the Hong Kong Stock Exchange Lim
ited (HK L
ist
ing Rules) about loans to d
irectors were as follows:

| 2024 | 2023
| Number | $mill ion | Number | $mill ion
Directors 1 | 3 | – | 4 | –

1 Outstanding loan balances were below $50,000
The loan transactions provided to the directors of Standard Chartered PLC were a connected transaction under Chapter 14A
of the HK List
ing Rules. It was fully exempt as ﬁnancial ass
istance under Rule 14A.87(1), as it was provided in our ordinary and
usual course of business and on normal commercial terms.
Other than as disclosed in these ﬁnanc
ial statements, there were no other transact
ions, arrangements or agreements
outstanding for any director of the Company which have to be disclosed under the Act.
Group

| 2024 | 2023
| Due from/to |  |  |  |  |  |  |
| subsid iary |  | Subordinated |  | Due from/to |  | Subordinated |
| undertakings |  | liab il it ies and |  | subsid iary |  | liab il it ies and |
| and other | Derivat ive | other |  | undertakings | Derivat ive | other |
| related | ﬁnancial | borrowed | Debt | and other | ﬁnancial | borrowed | Debt
| parties | instruments | funds | Securit ies | related parties | instruments | funds | Securit ies
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |
Ultimate parent company | 51 | 1,111 | – | 14 | 26 | 1,127 | – | 20
Fellow subsid iar ies of |  |  |  |  |  |  |  |
SC PLC Group | 5,133 | 12,811 | – | 416 | 5,640 | 7,057 | – | 655
| 5,184 | 13,922 | – | 430 | 5,666 | 8,184 | – | 675
Liab il it ies |  |  |  |  |  |  |  |
Ultimate parent company | 11,331 | 167 | 10,015 | 8,096 | 10,193 | 85 | 11,094 | 9,543
Fellow subsid iar ies of |  |  |  |  |  |  |  |
SC PLC Group | 16,915 | 11,153 | – | 966 | 20,974 | 6,748 | – | 18
| 28,246 | 11,320 | 10,015 | 9,062 | 31,167 | 6,833 | 11,094 | 9,561

35. Related party transactions continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
235
Directors’ Report and Financ
ial Statements 2024

| 2024
| Fees and | Fees and |  |
| commiss ion | commiss ion | Interest | Interest
| income | expense | income | expense
| $mill ion | $mill ion | $mill ion | $mill ion
Ultimate parent company | – | – | – | 1,604
Fellow subsid iar ies of SC PLC Group | 288 | 270 | 160 | 736
| 288 | 270 | 160 | 2,340
| 2023
| Fees and | Fees and |  |
| commiss ion | commiss ion | Interest | Interest
| income | expense | income | expense
| $mill ion | $mill ion | $mill ion | $mill ion
Ultimate parent company | – | – | – | 1,296
Fellow subsid iar ies of SC PLC Group | 225 | 151 | 129 | 819
| 225 | 151 | 130 | 2,116

The Group contributes to employee pension funds and provides banking services free of charge to the UK fund. For details of
the funds (see Note 29).
The Group’s employees partic
ipate
in the Standard Chartered PLC group’s share-based compensation plans (see Note 30).
The cost of the compensation is recharged from Standard Chartered PLC to the Group’s branches and subsid
iar
ies.
Associates and jo
int ventures
The following transactions with related parties are on an arm’s length basis:

|  | 2024 | 2023
|  | $mill ion | $mill ion
| Assets |  |
| Financ ial Assets held at FVTPL | – | 14
| Derivat ive assets | 5 | 12
| Total assets | 5 | 26
| Liab il it ies |  |
| Deposits | 30 | 38
| Derivat ive l iab il it ies | 4 | –
| Other liab il it ies | – | 1
| Total liab il it ies | 34 | 39
| Loan commitments and other guarantees¹ | 12 | 113

1
The maximum loan commitments and other guarantees during the year was $12 mill
ion (31 December 2023: $113 m
ill
ion)
35. Related party transactions continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
236
Directors’ Report and Financ
ial Statements 2024
Company

| 2024 | 2023
| Due from/to |  |  |  |  |  |  |
| subsid iary |  | Subordinated |  | Due from/to |  | Subordinated |
| undertakings |  | liab il it ies and |  | subsid iary |  | liab il it ies and |
| and other | Derivat ive | other |  | undertakings | Derivat ive | other |
| related | ﬁnancial | borrowed | Debt | and other | ﬁnancial | borrowed | Debt
| parties | instruments | funds | Securit ies | related parties | instruments | funds | Securit ies
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Assets |  |  |  |  |  |  |  |
Ultimate parent company | 51 | 1,111 | – | 11 | 26 | 1,127 | – | 20
Subsid iar ies and |  |  |  |  |  |  |  |
fellow subsid iar ies |  |  |  |  |  |  |  |
of SC PLC Group | 9,980 | 17,546 | – | 4,283 | 10,028 | 10,365 | – | 4,436
| 10,031 | 18,657 | – | 4,294 | 10,053 | 11,492 | – | 4,456
Liab il it ies |  |  |  |  |  |  |  |
Ultimate parent company | 11,323 | 167 | 9,475 | 8,096 | 10,184 | 85 | 10,554 | 9,543
Subsid iar ies and |  |  |  |  |  |  |  |
fellow subsid iar ies |  |  |  |  |  |  |  |
of SC PLC Group | 30,990 | 15,518 | – | 16 | 37,133 | 10,281 | – | 18
| 42,313 | 15,685 | 9,475 | 8,112 | 47,317 | 10,366 | 10,554 | 9,561

| 2024
| Fees and | Fees and |  |  |
| commiss ion | commiss ion | Interest | Interest | Div idend
| income | expense | income | expense | income
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Ultimate parent company | – | – | – | 1,563 | –
Subsid iar ies and fellow subsid iar ies of SC PLC Group | 504 | 325 | 589 | 1,212 | 1,052
| 504 | 325 | 589 | 2,775 | 1,052
| 2023
| Fees and | Fees and |  |  |
| commiss ion | commiss ion | Interest | Interest | Div idend
| income | expense | income | expense | income
| $mill ion | $mill ion | $mill ion | $mill ion | $mill ion
Ultimate parent company | – | – | – | 1,257 | –
Subsid iar ies and fellow subsid iar ies of SC PLC Group | 349 | 59 | 459 | 1,378 | 2,060
| 349 | 59 | 459 | 2,635 | 2,060

As at 31 December 2024, Standard Chartered Bank had in place a charge over $68 mill
ion (31 December 2023: $68 m
ill
ion)
of cash assets in favour of the non-consolidated independent trustee of its employer ﬁnanced retirement beneﬁt scheme.
The Company contributes to employee pension funds and provides banking services free of charge to the UK fund.
For details of the funds see note 29.
The Company’s employees partic
ipate
in the Standard Chartered PLC group’s share-based compensation plans (see note 30).
The Company has an agreement with Standard Chartered PLC that in the event of the Company defaulting on its debt
coupon interest payments, where the terms of such debt requires it, Standard Chartered PLC shall issue shares as settlement
for non-payment of the coupon interest.
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
237
Directors’ Report and Financ
ial Statements 2024
36. Auditor’s remuneration
Auditor’s remuneration is included with
in other general adm
in
istrat
ion expenses. The amounts paid by the Group to their
princ
ipal aud
itor, Ernst & Young LLP (EY LLP) and its associates (together EY LLP), are set out below. All services are approved
by the Group Audit Committee and are subject to controls to ensure the external auditor’s independence is unaffected by the
provis
ion of other serv
ices.

| 2024 | 2023
| $mill ion | $mill ion
Audit fees for the Standard Chartered PLC Group statutory audit | 31.3 | 27.8
Of which fees for the statutory audit of Standard Chartered Bank Group | 23.2 | 20.6
Fees payable to EY for other services provided to the Standard Chartered Bank Group: |  |
Audit of Standard Chartered Bank subsid iar ies | 8.1 | 8.8
Total Audit fees | 39.4 | 36.6
Audit -related assurance services | 4.1 | 3.4
Other assurance services | 4.8 | 6.2
Other non-audit services | 0.4 | 0.8
Transaction related services | 0.6 | –
Total fees payable | 49.3 | 47.0

The following is a descript
ion of the type of serv
ices included with
in the categor
ies listed above:
•
Audit fees for the Group statutory audit are in respect of fees payable to EY LLP for the statutory audit of the consolidated
ﬁnancial statements of the Group and the separate ﬁnancial statements of Standard Chartered PLC
•
Audit-related fees consist of fees such as those for services required by law or regulation to be provided by the auditor,
reviews of inter
im ﬁnancial
informat
ion, report
ing on regulatory returns, reporting to a regulator on client assets and
extended work performed over ﬁnancial
informat
ion and controls author
ised by those charged with governance
•
Other assurance services include agreed-upon-procedures in relation to statutory and regulatory ﬁl
ings
•
Transaction related services are fees payable to EY LLP for issu
ing comfort letters
Expenses incurred in respect of their role as auditor, were reimbursed to EY LLP $1 mill
ion (2023:$0.9 m
ill
ion).
37. Remuneration of Directors
This table sets out salary (includ
ing salary shares), pens
ion and beneﬁts received in 2024 and variable remuneration awards
received in respect of 2024.

| 2024 1 | 2023 2
| £000 | £000
Salaries and fees | 8,707 | 8,299
Pension | 457 | 421
Beneﬁts | 539 | 638
Annual incent ive | 4,418 | 3,399
Vesting of LTIP awards | 6,126 | 5,475
Buy-out award 3 | - | 862
Total fees payable | 20,247 | 19,094

1
Diane Jurgens and Lincoln Leong jo
ined the Court on 1 March 2024 and 2 November 2024 respect
ively.
2
The values of vesting 2021-23 LTIP awards have been restated based on the ﬁnal vesting outcome of 57 per cent and actual share price of £6.59 when the awards vested
in March 2024.
3
S Ricke received a buy-out award in respect of shares forfeited upon leaving her former role to jo
in the Group. The buy-out award takes the form of upfront shares,
deferred shares, and deferred cash, and has been calculated in line with PRA and FCA remuneration regulations. The buy-out will be delivered over the period of March
2023 – 2027.
37. Remuneration of Directors continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
238
Directors’ Report and Financ
ial Statements 2024
Addit
ional
informat
ion on the remunerat
ion elements in the above single total ﬁgure table
Salaries and fees
The total salaries of the three directors as at 1 January 2024 (or the date of appointment, if later) was £5,117,000. For two of
the directors, salary is paid part in cash and part in shares which are subject to a retention period and released pro rata over
ﬁve years. The number of salary shares allocated is determined based on the monetary value and the prevail
ing market pr
ice
of the Group’s shares on the date of allocation. The emoluments, includ
ing share-based payments and other beneﬁts, of the
highest paid director during 2024 were £10,655,707 (2024: £7,836,987). There were employer pension contribut
ions for the
highest paid director during 2024 of £251,700 (2023: £250,625).
The total annualised fees of the Chairman and directors as at 1 January 2024 (or the date of appointment, if later) were
£3,590,499
There is no apportionment of remuneration between Standard Chartered Bank and Standard Chartered PLC.
Share awards
No directors exercised share awards over Standard Chartered PLC during the year.
Pension and beneﬁts
An explanation of pension and beneﬁts for those directors who are also executive directors of the SC PLC Group can be found
in the SC PLC Group’s 2024 Directors’ remuneration report on pages 143 to 174. The directors who are also employees of the SC
PLC Group received a ﬂexible beneﬁts allowance in alignment with the UK workforce to include a mixture of core pension and
beneﬁts provis
ion,
includ
ing pr
ivate medical cover, life assurance and permanent health insurance. Some directors
occasionally use a Group car service for traveling and, in some circumstances, were accompanied by their spouses to attend
events.
For those directors who are also employees of the SC PLC Group, annual incent
ives
in respect of 2024 are delivered upfront
with at least 50 per cent paid in shares subject to a min
imum twelve-month retent
ion period..
Vesting of LTIP awards
The long-term incent
ive plan (LTIP) awards granted
in March 2021 vested in March 2024, based on performance over the
years 2021 to 2023. 57 per cent of these awards vested.The LTIP awards granted in March 2022 are due to vest in March 2025,
based on performance over the years 2022 to 2024. Following an assessment of the performance measures (RoTE with CET1
underpin, relative TSR, sustainab
il
ity and strategic measures), the projected outcome of these awards is 88 per cent. The ﬁnal
assessment of the relative TSR performance will be conducted in March 2025, the end of the three-year performance period.
Based on a share price of £9.197, the three-month average to 31 December 2024, the projected value to be delivered to the
directors is £6,125,761.
The highest paid director has not exercised any share options during the year.
An LTIP award of 616,378 shares was made in March 2024 to the highest paid director, at a share price of £6.60 (adjusted for
loss of div
idend), wh
ich are subject to the satisfact
ion of stretch
ing RoTE, relative TSR, sustainab
il
ity and strategic
performance measures over three years (2024 to 2026).
Other disclosures
The remuneration policy and practices applying to the Material Risk Taker employees of the Bank are the same as those
applied by the SC PLC Group which are set out in the SC Pillar 3 report on pages 132 to 137.
Further informat
ion on the remunerat
ion for those directors who are also executive directors of the SC PLC Group can be
found in the SC PLC Group’s 2024 Directors’ remuneration report on pages 143 to 181.
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
239
Directors’ Report and Financ
ial Statements 2024
38. Related undertakings of the Group
As at 31 December 2024, the Group’s interests in related undertakings in accordance with Section 409 of the Companies Act
2006 are disclosed below. Unless otherwise stated, the share capital disclosed comprises ordinary or common shares which
are held by subsid
iar
ies of the Group. Unless otherwise ind
icated, all related undertak
ings are held ind
irectly.
Name

| Proportion of |
| shares held |
| (%) | Footnotes
Subsid iary Undertak ings |  |
SC (Secretaries) Lim ited vi i i | 100 | 1
SC Transport Leasing 1 Ltd iv | 100 | 1 , 86 , 87
SC Transport Leasing 2 Lim ited iv | 100 | 1 , 86 , 87
SCMB Overseas Lim ited i i i | 100 | 1 , 85 , 87
Standard Chartered Africa Lim ited i i i | 100 | 1 , 85 , 87
Standard Chartered Bank i | 100; 100 I,K | 1
Standard Chartered Foundation vi i | 100 V | 1 , 82
Standard Chartered Health | 100 | 1
Trustee (UK) Lim ited vi i |  |
Standard Chartered Leasing | 100 | 1 , 87
(UK) Lim ited iv |  |
Standard Chartered Nominees | 100 | 1
(Private Clients UK) Lim ited i |  |
Standard Chartered Securit ies | 100 | 1 , 85 , 87
(Africa) Holdings Lim ited i i i |  |
Standard Chartered Trustees | 100 | 1
(UK) Lim ited vi i |  |
The SC Transport Leasing Partnership 1 iv | 100 P | 1 , 87
The SC Transport Leasing Partnership 2 iv | 100 P | 1 , 87
The SC Transport Leasing Partnership 3 iv | 100 P | 1 , 87
The SC Transport Leasing Partnership 4 iv | 100 P | 1 , 87
Bricks (C&K) LP vi i | 100 P | 2 , 82
Bricks (C) LP vi i | 100 P | 2 , 82
Bricks (T) LP vi i | 100 P | 2 , 82
Corrasi Covered Bonds LLP vi i | 75 R | 3
Standard Chartered Grindlays | 100 | 4
Pty Lim ited i i i |  |
Standard Chartered Bank Insurance | 100 | 5
Agency (Proprietary) Lim ited i |  |
Standard Chartered Investment | 100 | 5
Services (Proprietary) Lim ited i |  |
Standard Chartered Bank | 75.827 | 5
Botswana Lim ited i |  |
Standard Chartered Botswana Nominees | 100 | 5
(Proprietary) Lim ited i |  |
Standard Chartered Botswana | 100 S | 5
Education Trust vi i |  |
Standard Chartered Representação e | 100 | 6
Partic ipações Ltda i |  |
Standard Chartered Securit ies (B) | 100 | 55
Sdn Bhd i |  |
Standard Chartered Bank Cameroon S.A. i | 100 | 7
SCB Investment Holding | 99.999 A | 60
Company Lim ited i i i |  |
Standard Chartered Global Business | 100 | 9 , 84
Services Co., Ltd v |  |
Standard Chartered Global Business | 100 | 65 , 84
Services (Guangzhou) Co., Ltd. v |  |

| Proportion of |
| shares held |
Name | (%) | Footnotes
Standard Chartered Bank | 100 | 10
Cote d'Ivoire SA i |  |
Standard Chartered Bank | 74.852 | 11
Gambia Lim ited i |  |
Standard Chartered Bank AG i | 100 | 12
Standard Chartered Bank Ghana PLC i | 69.416; | 13
| 87.043 K |
Standard Chartered Ghana | 100 | 13
Nominees Lim ited i |  |
Standard Chartered Wealth | 100 | 14
Management Lim ited Company i |  |
Standard Chartered PF Real Estate | 100 | 50
(Hong Kong) Lim ited i i i |  |
Standard Chartered Private | 100 | 15
Equity Lim ited i i i |  |
Standard Chartered Asia Lim ited i i i | 100; 100 U | 15
Standard Chartered Global Business | 100 | 16
Services Private Lim ited vi |  |
Standard Chartered Finance | 98.675 | 17
Private Lim ited vi |  |
St Helen's Nominees India Private Lim ited i | 100 | 18
Standard Chartered Private Equity | 100 | 18
Advisory (India) Private Lim ited vi |  |
Standard Chartered Capital Lim ited i | 100 | 76
Standard Chartered Securit ies | 100 | 52
(India) Lim ited i |  |
Standard Chartered (India) Modeling | 100 | 19
and Analytics Centre Private Lim ited vi |  |
Standard Chartered Assurance Lim ited i | 100; 100 E | 20
Standard Chartered Isle of Man Lim ited i | 100 | 20
Standard Chartered Securit ies | 100 | 21
(Japan) Lim ited i |  |
SCB Nominees (CI) Lim ited vi i | 100 | 22
Standard Chartered Bancassurance | 100 | 23
Intermediary Lim ited i |  |
Standard Chartered Investment | 100 | 23
Services Lim ited i i i |  |
Standard Chartered Bank Kenya Lim ited i | 74.318; 100 D | 23
Standard Chartered Securit ies | 100 | 23
(Kenya) Lim ited i |  |
Standard Chartered Financ ial | 100 | 23
Services Lim ited i |  |
Standard Chartered Kenya | 100 | 23
Nominees Lim ited i |  |
Standard Chartered Metropolitan | 99.9 A | 24
Holdings SAL i i i |  |
Cartaban (Malaya) Nominees | 100 | 25
Sdn Berhad i |  |
Cartaban Nominees (Asing) Sdn Bhd i | 100 | 25
Cartaban Nominees (Tempatan) Sdn | 100 | 25
Bhd i |  |

38. Related undertakings of the Group continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
240
Directors’ Report and Financ
ial Statements 2024

| Proportion of |
| shares held |
Name | (%) | Footnotes
Golden Maestro Sdn Bhd i i i | 100 | 25
Price Solutions Sdn Bhd i | 100 | 25
SCBMB Trustee Berhad vi i | 100 | 25
Standard Chartered Bank | 100; 100 J | 25
Malaysia Berhad i |  |
Standard Chartered Saadiq Berhad i | 100 | 25
Resolution Alliance Sdn Bhd i i i | 91 | 26
Standard Chartered Global Business | 100 | 61
Services Sdn Bhd vi |  |
Standard Chartered Bank | 100 | 27
(Maurit ius) L im ited i |  |
Standard Chartered Private Equity | 100 | 59
(Maurit ius) L im ited i |  |
Standard Chartered Private Equity | 100 | 59
(Maurit ius) II L im ited i |  |
Standard Chartered Private Equity | 100 | 59
(Maurit ius) lll L im ited i |  |
Subcontinental Equit ies L im ited i i i | 100 | 28
Standard Chartered Bank Nepal Lim ited i | 70.21 | 29
Standard Chartered Holdings | 100 | 1 , 85
(Africa) B.V. i i i |  |
Standard Chartered Holdings | 100 | 1 , 85
(Asia Pacif ic) B.V. i i i |  |
Standard Chartered Holdings | 100 | 1 , 85
(International) B.V .i i i |  |
Standard Chartered MB Holdings B.V. i i i | 100 | 1 , 85
Standard Chartered Bank Niger ia L im ited i | 100; 100 F,K | 30
Standard Chartered Capital & Advisory | 100 | 30
Niger ia L im ited i |  |
Standard Chartered Nominees | 100 | 30
(Niger ia) L im ited i |  |
Standard Chartered Bank | 98.986 | 31
(Pakistan) Lim ited i |  |
Standard Chartered Group Services, | 100 | 32
Manila Incorporated vi |  |
Standard Chartered Global Business | 100 | 33
Services spółka z ograniczoną |  |
odpowiedz ialnośc ią vi |  |
Standard Chartered Capital | 100 | 62
(Saudi Arabia) i |  |
Standard Chartered Real Estate | 100 | 34
Investment Holdings (Singapore) |  |
Private Lim ited i i i |  |
Rafﬂes Nominees (Pte.) Lim ited i | 100 | 35
SCTS Capital Pte. Ltd i | 100 | 36
SCTS Management Pte. Ltd. i | 100 A,B,C,N | 36
Standard Chartered Bank | 100 | 36
(Singapore) Lim ited i |  |
Standard Chartered Trust | 100 | 36
(Singapore) Lim ited vi i |  |
Standard Chartered Holdings (Singapore) | 100 | 36
Private Lim ited i i i |  |
Standard Chartered Nominees | 100 | 36
(Singapore) Pte Ltd i |  |

| Proportion of |
| shares held |
Name | (%) | Footnotes
Trust Bank Singapore Lim ited i | 60 | 68
Standard Chartered Nominees South | 100 | 38
Africa Proprietary Lim ited (RF) i |  |
Standard Chartered Bank | 100; 100 D | 39
Tanzania Lim ited i |  |
Standard Chartered Tanzania | 100 | 39
Nominees Lim ited i |  |
Standard Chartered Bank (Thai) | 99.871 | 40
Public Company Lim ited i |  |
Standard Chartered Yatir im Bankas i | 100 | 41
Turk Anonim Sirket i |  |
Standard Chartered Bank | 100 | 42
Uganda Lim ited i |  |
Standard Chartered Bank | 100 | 58
International (Americas) Lim ited i |  |
Standard Chartered Holdings Inc. i i i | 100 | 43
Standard Chartered Securit ies | 100 R | 43
(North America) LLC i |  |
Standard Chartered Trade | 100 | 51
Services Corporation i |  |
Standard Chartered Bank | 100O | 45
(Vietnam) Lim ited i |  |
Sky Harmony Holdings Lim ited i i i | 100 | 63
Standard Chartered Bank Zambia Plc i | 90 | 64
Standard Chartered Zambia Securit ies | 100 | 69
Services Nominees Lim ited i |  |
CMB Nominees (RF) Proprietary Lim ited vi i | 100 | 38
Standard Chartered Funds VCC vi i | 100 | 36
Standard Chartered Luxembourg S.A. i | 100 | 53
Associates |  |
Clifford Capital Holdings Pte. Ltd. i i i | 9.9 | 56
Verif ied Impact Exchange Hold ings | 13.421 | 57
Pte. Ltd i |  |
Seychelles International Mercantile | 22 | 46
Banking Corporation Lim ited. i |  |
Sign iﬁcant investment holdings and |  |
other related undertakings |  |
Corrasi Covered Bonds (LM) Lim ited i | 20 | 3
ATSC Cayman Holdco Lim ited i i i | 5.272 A ; 100 B | 77
Actis Temple Stay Holdings (HK) Lim ited i i i | 39.689 ; A | 70
| 39.689 B |
Mikado Realtors Private Lim ited vi i | 26 | 78
Industrial Minerals and Chemical Co. Pvt. | 26 | 79
Ltd vi i |  |
Paxata, Inc. vi i | 40.74 G ; | 64
| 8.908 H |

38. Related undertakings of the Group continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
241
Directors’ Report and Financ
ial Statements 2024

| Proportion of |
| shares held |
Name | (%) | Footnotes
Subsid iary Undertak ings – In liqu idat ion |  |
Standard Chartered Masterbrand | 100 | 66
Licens ing L im ited vi i |  |
Standard Chartered Leasing | 100 | 66
(UK) 3 Lim ited iv |  |
Birdsong Lim ited vi i | 100 | 47
Nominees One Lim ited vi i | 100 | 47
Nominees Two Lim ited vi i | 100 | 47
Songbird Lim ited vi i | 100 | 47
Standard Chartered Secretaries | 100 | 47
(Guernsey) Lim ited vi i |  |
Standard Chartered Trust | 100 | 47
(Guernsey) Lim ited vi i |  |
Standard Chartered Financ ial Serv ices | 100 | 48
(Luxembourg) S.A. vi i |  |
Banco Standard Chartered | 100 | 67
en Liqu idac ion vi i |  |
Standard Chartered Uruguay | 100 | 49
Representacion S.A. vi i |  |
Standard Chartered IL&FS Management | 50 | 37
(Singapore) Pte. Lim ited vi i |  |
Cerulean Investments LP vi i | 100 P | 8
Subsid iary/Assoc iate undertakings – |  |
Liqu idated/d issolved/sold |  |
Assembly Payments, Inc i | 100 | 71
Assembly Escrow Inc i | 100 | 72 , 82
Shoal Lim ited i i | 100 | 1
Standard Chartered Bank | 100 | 73
Zimbabwe Lim ited i |  |
Africa Enterprise Network Trust vi i | 100 S | 73 , 83
Standard Chartered Nominees Zimbabwe | 100 | 73
(Private) Lim ited vi i |  |
Standard Chartered Bank Angola S.A. i | 60 | 74
Standard Chartered Bank | 80.656 | 75
Sierra Leone Lim ited i |  |
The BW Leasing Partnership 1 LP iv | 100 P | 54 , 82
The BW Leasing Partnership 2 LP iv | 100 P | 54 , 82
The BW Leasing Partnership 3 LP iv | 100 P | 54 , 82
The BW Leasing Partnership 4 LP iv | 100 P | 54 , 82
The BW Leasing Partnership 5 LP iv | 100 P | 54 , 82
Standard Chartered Overseas | 100 | 44
Investment, Inc. i i i |  |
Actis Rivendell Holdings (HK) Lim ited i i i | 39.671 A ; | 70
| 39.671 B |

| Descript ion of shares
A | Class A Ordinary shares
B | Class B Ordinary shares
C | Class C Ordinary shares
D | Preference shares
E | Redeemable preference shares
F | Series B Redeemable preference shares
G | Series C2 preference shares
H | Series C3 preference shares
I | Redeemable non-cumulative preference shares
J | Irredeemable convertible preference shares
K | Irredeemable non-cumulative preference shares
L | Class B Non-cumulative preference shares
M | Class C Non-cumulative preference shares
N | Class D Non-cumulative preference shares
O | Charter capital
P | Lim ited Partnersh ip
Q | Partnership Interest
R | Membership interest
S | Trust
T | icated Uncertif
U | Deferred shares
V | Guarantee
| Activ ity
i | Banking & Financ ial Serv ices
i i | Dig ital Venture
i i i | Investment holding company
iv | Leasing and Finance
v | Research & development
vi | Support Services
vi i | Others

38. Related undertakings of the Group continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
242
Directors’ Report and Financ
ial Statements 2024

| Address in country of incorporation
1 | 1 Basinghall Avenue, London, EC2V 5DD, United Kingdom
2 | 2 More London Rivers ide, London, SE1 2JT, Un ited Kingdom
3 | 1 Bartholomew Lane, London, EC2N 2AX, United Kingdom
4 | Level 5, 345 George St, Sydney NSW 2000, Australia
5 | 5th Floor Standard House Bldg, The Mall, Queens Road,
| O Box 496, Gaborone, Botswana
6 | Avenida Brigade iro Far ia Lima, no 3.477, 6º andar, conjunto
| 62 - Torre Norte, Condomin io Pat io Victor Malzoni, CEP
| 04538-133, Sao Paulo, Brazil
7 | 1155, Boulevard de la Liberté, Douala, B.P. 1784, Cameroon
8 | Maples Corporate Services Lim ited, PO Box 309, Ugland
| House, Grand Cayman, KY1-1104 , Cayman Islands
9 | No. 35, Xinhuanbe i Road, TEDA, T ianjin, 300457, China
10 | 23 Boulevard de la République, Abidjan 17, 17 B.P. 1141,
| Cote d'Ivoire
11 | 8 Ecowas Avenue, Banjul, Gambia
12 | Taunusanlage 16, 60325, Frankfurt am Main, Germany
13 | Standard Chartered Bank Build ing, No. 87, Independence
| Avenue, P.O. Box 768, Accra, Ghana
14 | 87, Independence Avenue, Post Ofﬁce Box 678,
| Accra, Ghana
15 | 13/F Standard Chartered Bank Build ing, 4-4A Des Voeux
| Road Central, Hong Kong
16 | 1st Floor, Europe Build ing, No.1, Haddows Road,
| Nungambakkam, Chennai, 600 006, India
17 | 90 M.G.Road, II Floor, Fort, Mumbai, Maharashtra,
| 400001, India
18 | Ground Floor, Crescenzo Build ing, G Block, C 38/39,
| Bandra Kurla Complex, Bandra (East) , Mumbai,
| Maharashtra , 400051, India
19 | Vaishnav i Seren ity, First Floor, No. 112, Koramangala
| Industrial Area, 5th Block, Koramangala, Bangalore,
| Karnataka, 560095, India
20 | 1st Floor, Goldie House, 1-4 Goldie Terrace,
| Upper Church Street, Douglas, IM1 1EB, Isle of Man
21 | 21/F, Sanno Park Tower, 2-11-1 Nagatacho,
| Chiyoda-ku, Tokyo, 100-6155, Japan
22 | 15 Castle Street, St Helier, JE4 8PT, Jersey
23 | Standard Chartered@Chiromo, 48 Westlands Road,
| P. O. Box 30003 - 00100, Nairob i , Kenya
24 | Atrium Build ing, Maarad Street, 3rd Floor, P.O. Box 11-4081
| Raid El Solh, Beirut Central Distr ict, Lebanon
25 | Level 25, Equatorial Plaza, Jalan Sultan Ismail,
| 50250 Kuala Lumpur, Malaysia
26 | Suite 18-1, Level 18, Vertical Corporate Tower B, Avenue 10,
| The Vertical, Bangsar South City , No. 8, Jalan Kerinch i ,
| 59200 Kuala Lumpur, Wilayah Persekutuan, Malaysia
27 | 6th Floor, Standard Chartered Tower , 19, Bank Street,
| Cybercity, Ebene, 72201, Maurit ius
28 | Mondial Management Services Ltd, Unit 2L, 2nd Floor
| Standard Chartered Tower, 19 Cybercity, Ebene, Maurit ius
29 | Madan Bhandari Marg. Ward No.31, Kathmandu
| Metropolitan City, Kathmandu Distr ict, Bagmat i Province,
| Kathmandu, 44600, Nepal
30 | 142, Ahmadu Bello Way, Victor ia Island, Lagos,
| 101241, Niger ia

| Address in country of incorporation
31 | P.O. Box No. 5556, I.I. Chundrigar Road , Karachi ,
| 74000, Pakistan
32 | 8th Floor, Makati Sky Plaza Build ing 6788, Ayala Avenue
| San Lorenzo, City of Makati, Fourth Distr ict, Nat ional Capi,
| 1223, Phil ipp ines
33 | Rondo Ignacego Daszyńskiego 2B, 00-843,
| Warsaw, Poland
34 | 9 Rafﬂes Place, #26-01 Republic Plaza, 048619, Singapore
35 | 7 Changi Business Park Crescent, #03-00 Standard
| Chartered @ Changi, 486028, Singapore
36 | 8 Marina Boulevard, #27-01 Marina Bay Financ ial Centre
| Tower 1, 018981, Singapore
37 | Abogado Pte Ltd, No. 8 Marina Boulevard, #05-02 MBFC
| Tower 1, 018981, Singapore
38 | 2nd Floor, 115 West Street, Sandton, Johannesburg, 2196,
| South Africa
39 | 1 Floor, International House, Shaaban Robert Street/
| Garden Avenue, PO Box 9011, Dar Es Salaam, Tanzania,
| United Republic of
40 | No. 140, 11th, 12th and 14th Floor, Wireless Road, Lumpin i,
| Patumwan, Bangkok, 10330, Thailand
41 | Buyukdere Cad. Yapi Kredi Plaza C Blok, Kat 15, Levent,
| Istanbul, 34330, Turkey
42 | Standard Chartered Bank Bldg, 5 Speke Road, PO Box 7111,
| Kampala, Uganda
43 | Corporation Trust Center, 1209 Orange Street, Wilm ington
| DE 19801, United States
44 | 50 Fremont Street, San Francisco CA 94105, United States
45 | Level 3, #CP1.L01 and #CP2.L01, Capital Place, 29
| Lieu Gia i Street, Ngoc Khanh Ward, Ba D inh Distr ict,
| Ha Noi, 10000, Vietnam
46 | Victor ia House, State House Avenue, V ictor ia,
| MAHE, Seychelles
47 | Bucktrout House, Glategny Esplanade, St Peter Port,
| GY1 3HQ, Guernsey
48 | 30 Rue Schrobilgen, 2526, Luxembourg
49 | Luis Alberto de Herrera 1248, Torre II, Piso 11,
| Esc. 1111, Uruguay
50 | 14th Floor, One Taikoo Place, 979 King's Road,
| Quarry Bay, Hong Kong
51 | C/O Corporation Service Company, 251 Little Falls Drive,
| Wilm ington DE 19808, Un ited States
52 | 2nd Floor, 23-25 M.G. Road, Fort, Mumbai 400 001, India
53 | 53 Boulevard Royal, Grand Duchy of Luxembourg,
| 2449, Luxembourg
54 | 5th Floor, Holland House, 1-4 Bury Street, London,
| EC3A 5AW, United Kingdom
55 | G01-02, Wisma Haj i Mohd Taha Bu ild ing,
| Jalan Gadong, BE4119, Brunei Darussalam
56 | 1 Rafﬂes Quay , #23-01 , One Rafﬂes Quay,
| 048583 , Singapore
57 | 10 Marina Boulevard #08-08, Marina Bay Financ ial Centre,
| 018983, Singapore
58 | 1095 Avenue of Americas, New York City NY 10036,
| United States

38. Related undertakings of the Group continued
Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
243
Directors’ Report and Financ
ial Statements 2024

| Address in country of incorporation
59 | c/o Ocorian Corporate Services (Maurit ius) Ltd, 6th Floor,
| Tower A,1, Exchange Square, Wall Street, Ebene, Maurit ius
| – 72201, Maurit ius
60 | c/o Maples Finance Lim ited, PO Box 1093 GT, Queensgate
| House, Georgetown, Grand Cayman, Cayman Islands
61 | Level 1, Wisma Standard Chartered, Jalan Teknologi 8,
| Taman Teknologi Malaysia, Bukit Jalil, , 57000 Kuala
| Lumpur, Wilayah Persekutuan, Malaysia
62 | Al Faisal iah Ofﬁce Tower Floor No 7 (T07D) , K ing Fahad
| Highway, Olaya Distr ict, P.O box 295522 , R iyadh, 11351 ,
| Saudi Arabia
63 | The Company's Registered Ofﬁce, Vistra Corporate
| Services Centre, Wickhams Cay II, Road Town, Tortola,
| VG1110, Virg in Islands, Br it ish
64 | Standard Chartered House, Stand No. 4642, Corner of
| Mwaimwene Road and Addis Ababa Drive, Lusaka,
| Lusaka, 10101, Zambia
65 | Unit 802B, 803, 1001A,1002B,1003-1005,1101-1105, 201-
| 1205,1302C,1303, No. 235 Tianhe North Road, Tianhe
| Distr ict, Guangzhou C ity, Guangdong Province, China
66 | C/O Teneo Financ ial Adv isory Lim ited, The Colmore
| Build ing, 20 Colmore C ircus, Queensway, Birm ingham,
| B4 6AT, United Kingdom
67 | Jiron Huascar 2055, Jesus Maria, Lima, 15072, Peru
68 | 77 Robinson Road, #25-00 Robinson 77, 068896, Singapore
69 | Stand No. 4642 , Corner of Mwaimwena Road and
| Addis Ababa Drive, Lusaka, 10101, Zambia
70 | Unit 605-07, 6/F Wing OnCentre, 111 Connaught Road,
| Central,Sheung Wan, Hong Kong
71 | 555 Washington Av, St Louis, MO, United States of
| America, 63101
72 | 25 Taylor St, San Francisco CA 94102-3916, United States
73 | Africa Unity Square Build ing, 68 Nelson Mandela Avenue,
| Harare, Zimbabwe
74 | Edifíc io K ilamba, 8º Andar Avenida 4 de Fevereiro, Marginal,
| Luanda, Angola
75 | 9 & 11, Lightfoot Boston Street, Freetown, Sierra Leone
76 | 12th Floor, Parinee Crescenzo Build ing, Plot C-38 & 39,
| G Block Bandra (E) Opp. MCA Ground, Mumbai,
| 400051, India
77 | Intertrust Corporate Services (Cayman) Lim ited, 190 Elg in
| Avenue,George Town, Grand Cayman , KY1-9005, Cayman
| Islands
78 | 1221 A, Devika Tower, 12th Floor, 6 Nehru Place, New Delhi
| 110019
79 | 4thFloor, 274, Chital ia House, Dr. Cawasji Hormusji Road,
| Dhobi Talao, Mumbai City, Maharashtra, India 400 002,
| Mumbai, 400 002, India
80 | IQEQ Corporate Services (Maurit ius) Ltd, 33, Ed ith Cavell
| Street, Port Louis, 11324, Maurit ius
81 | 6 Battery Road #13-01, 049909, Singapore

| Other notes
82 | The Group has determined that these undertakings are
| excluded from being consolidated into the Groups
| accounts, and do not meet the deﬁnit ion of a Subsid iary
| under IFRS. See note 32 for the consolidat ion pol icy and
| disclosure of the undertaking.
83 | No share capital by virtue of being a trust
84 | Lim ited l iab il ity company
85 | The Group has determined the princ ipal place of
| operation to be United Kingdom
86 | The Group has determined the princ ipal place of
| operation to be Hong Kong
87 | Company is exempt from the requirement for an audit of
| its ind iv idual accounts by virtue of Section 479A of the
| Companies Act 2006. Company names and associated
| numbers of the qualify ing subs id iar ies taking an audit
| exemption for the year ended 31 December 2024 are SCMB
| Overseas Lim ited 01764223, Standard Chartered Afr ica
| Lim ited 00002877, Standard Chartered Secur it ies (Afr ica)
| Holdings Lim ited 05843604, Standard Chartered Leas ing
| (UK) Lim ited 05513184, SC Transport Leas ing 2 Lim ited
| 06787090, SC Transport Leasing 1 Ltd. 06787116, The SC
| Transport Leasing Partnership 1 LP13441, The SC Transport
| Leasing Partnership 2 LP13440, The SC Transport Leasing
| Partnership 3 LP13442, The SC Transport Leasing
| Partnership 4 LP13443. In line with section 479C of the
| Companies Act 2006, the Parent undertaking (Standard
| Chartered Bank Company) guarantees all outstanding
| liab il it ies to wh ich the subsid iary company is subject at the
| end of the ﬁnancial year includ ing external l iab il it ies of
| SCMB Overseas Lim ited ($5.9m ill ion)

Notes to the ﬁnancial statements cont
inued
Standard Chartered Bank
244
Directors’ Report and Financ
ial Statements 2024
39. Group Reorganisat
ion
Nil
40. Post balance sheet events
On 23 January 2025, the Indian branch of Standard Charted Bank sold its Unsecured Personal Loan business to Kotak
Mahindra Bank Lim
ited for a purchase cons
iderat
ion of INR32 b
ill
ion ($375 m
ill
ion) aga
inst a book value of $389 mill
ion on
that date, giv
ing r
ise to a loss on disposal of $14 mill
ion.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
245
Supplementary informat
ion
Contractual maturity of Loans, Investment securit
ies and Depos
its
2024
Loans and
advances to
banks
$mill
ion
Loans and
advances to
customers
$mill
ion
Investment
securit
ies
– Treasury and
other elig
ible
Bills
$mill
ion
Investment
securit
ies
– Debt
securit
ies
$mill
ion
Investment
securit
ies
– Equityshares
$mill
ion
Bank deposits
$mill
ion
Customer
accounts
$mill
ion
One year or less
41,096
128,508
29,750
15,066
–
26,070
273,937
Between one and ﬁve years
10,398
34,276
41
44,835
–
6,223
8,778
Between ﬁve and ten years
863
12,832
–
14,157
–
3
301
Between ten years and ﬁfteen years
71
6,712
–
5,760
–
–
114
More than ﬁfteen years and undated
238
17,814
–
17,204
1,629
2
11
Total
52,666
200,142
29,791
97,022
1,629
32,298
283,141
Total amortised cost and
FVOCI exposures
22,941
158,242
Fixed interest rate exposures
19,349
86,042
Floating interest rate exposures
3,592
72,200
2023
Loans and
advances to
banks
$mill
ion
Loans and
advances to
customers
$mill
ion
Investment
securit
ies
– Treasury and
other elig
ible
Bills
$mill
ion
Investment
securit
ies
– Debt
securit
ies
$mill
ion
Investment
securit
ies
– Equity shares
$mill
ion
Bank deposits
$mill
ion
Customer
accounts
$mill
ion
One year or less
46,411
137,816
21,695
22,486
–
25,813
285,976
Between one and ﬁve years
3,612
29,162
4
43,724
–
4,088
7,362
Between ﬁve and ten years
837
9,816
–
14,565
–
4
131
Between ten years and ﬁfteen years
35
6,891
–
9,189
–
–
86
More than ﬁfteen years and undated
226
17,742
–
12,434
1,875
–
10
Total
51,121
201,427
21,699
102,398
1,875
29,905
293,565
Total amortised cost and
FVOCI exposures
22,803
156,143
Fixed interest rate exposures
20,514
94,343
Floating interest rate exposures
2,289
61,800
Maturity and yield of Debt securit
ies, alternat
ive tier one and other elig
ible b
ills held at amortised cost
One year or less
Between one and ﬁve
years
Between ﬁve and ten
years
More than ten years
Total
$mill
ion
Yield %
$mill
ion
Yield %
$mill
ion
Yield %
$mill
ion
Yield %
$mill
ion
Yield %
Central and
other government agencies
• US
1,172
1.64
7,070
1.92
3,375
1.54
4,353
2.76
15,970
2.05
• UK
17
0.50
588
1.97
44
0.88
–
–
649
1.85
• Other
1,510
3.66
5,882
3.85
1,569
4.46
14
9.62
8,975
3.93
Other debt securit
ies
1,538
6.26
1,747
7.18
3,883
4.88
4,604
5.34
11,772
5.58
As at 31 December 2024
4,237
4.03
15,287
3.26
8,871
3.51
8,971
4.09
37,366
3.61
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
246
One year or less
Between one and ﬁve
years
Between ﬁve and ten
years
More than ten years
Total
$mill
ion
Yield %
$mill
ion
Yield %
$mill
ion
Yield %
$mill
ion
Yield %
$mill
ion
Yield %
Central and other
government agencies
• US
1,373
1.44
6,807
1.62
4,356
1.66
4,524
3.89
17,060
2.22
• UK
39
2.75
39
1.25
101
0.67
–
–
179
1.25
• Other
1,915
2.88
4,556
2.93
1,460
3.16
37
9.13
7,968
2.99
Other debt securit
ies
2,361
6.51
2,156
5.44
1,688
5.90
8,508
5.21
14,713
5.54
As at 31 December 2023
5,688
4.05
13,558
2.67
7,605
2.87
13,069
4.76
39,920
3.59
The maturity distr
ibut
ions are presented in the above table on the basis of contractual maturity dates. The weighted
average yield for each range of maturit
ies
is calculated by div
id
ing the annualised interest income for the year by the book
amount of debt securit
ies at that date.
Insured and uninsured deposits
SCB operates and provides services to customers across many countries and insured deposit is determined on the basis of
lim
its enacted w
ith
in local regulat
ions.
2024
2023
Insured deposits
Uninsured deposits
Total
$mill
ion
Insured deposits
Uninsured deposits
Total
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Current
accounts
8
6,104
17,356
118,803
142,271
9
7,932
17,790
112,752
138,483
Savings
deposits
–
6,161
–
17,224
23,385
–
5,359
–
15,063
20,422
Time deposits
–
5,646
5,900
93,675
105,221
1
5,072
6,643
99,876
111,592
Other deposits
–
104
9,030
35,426
44,560
–
93
5,462
47,418
52,973
Total
8
18,015
32,286
265,128
315,437
10
18,456
29,895
275,109
323,470
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 domic
ile or res
idence of the clients.
2024
2023
UK deposits
Non-UK deposits
Total
$mill
ion
UK deposits
Non-UK deposits
Total
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Bank
deposits
$mill
ion
Customer
accounts
$mill
ion
Current
accounts
478
5,751
16,886
119,156
142,271
888
5,695
16,911
114,989
138,483
Savings
deposits
–
40
–
23,345
23,385
–
31
–
20,391
20,422
Time deposits
315
7,473
5,585
91,848
105,221
310
5,237
6,334
99,711
111,592
Other deposits
2,317
12,795
6,713
22,735
44,560
1,683
16,513
3,779
30,998
52,973
Total
3,110
26,059
29,184
257,084
315,437
2,881
27,476
27,024
266,089
323,470
Supplementary informat
ion cont
inued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
247
Supplementary informat
ion cont
inued
Average balance sheets and yields and volume and price variances
Average balance sheets and yields
The following tables set out the average balances for the SC Bank Group’s assets and liab
il
it
ies for the per
iods ended 31
December 2024 and 31 December 2023. 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 informat
ion presented
in these tables would be sign
iﬁcantly d
ifferent had such balances been
determined on a daily basis.
Average assets
2024
Average
non-interest
earning
balance
$mill
ion
Average
interest
earning
balance
$mill
ion
Interest
income
$mill
ion
Gross yield
%
Gross yield
total balance
%
Cash and balances at central banks
6,262
55,364
2,500
4.52
4.06
Gross loans and advances to banks
33,338
22,539
1,296
5.75
2.32
Gross loans and advances to customers
44,176
166,285
10,415
6.26
4.95
Impairment provis
ions aga
inst loans and advances to
banks and customers
–
(3,589)
–
–
–
Investment securit
ies – Treasury and Other El
ig
ible B
ills
11,204
18,502
1,244
6.72
4.19
Investment securit
ies – Debt Secur
it
ies
17,532
83,820
3,728
4.45
3.68
Investment securit
ies – Equ
ity Shares
2,201
–
–
–
–
Due from subsid
iary undertak
ings and other related parties
–
8,085
127
1.57
1.57
Property, plant and equipment and intang
ible assets
4,271
–
–
–
–
Prepayments, accrued income and other assets
80,414
–
–
–
–
Investment associates and jo
int ventures
145
–
–
–
–
Total average assets
199,543
351,006
19,310
5.50
3.51
Average assets
2023
Average
non-interest
earning
balance
$mill
ion
Average
interest
earning
balance
$mill
ion
Interest
income
$mill
ion
Gross yield
%
Gross yield
total balance
%
Cash and balances at central banks
6,849
65,375
2,813
4.30
3.89
Gross loans and advances to banks
30,042
24,619
1,175
4.77
2.15
Gross loans and advances to customers
48,839
160,448
9,408
5.86
4.50
Impairment provis
ions aga
inst loans and advances to
banks and customers
–
(4,330)
–
–
–
Investment securit
ies – Treasury and Other El
ig
ible B
ills
4,284
18,151
1,204
6.63
5.37
Investment securit
ies – Debt Secur
it
ies
13,372
87,099
3,650
4.19
3.63
Investment securit
ies – Equ
ity Shares
1,313
–
–
–
–
Due from subsid
iary undertak
ings and other related parties
–
5,088
130
2.56
2.56
Property, plant and equipment and intang
ible assets
4,202
–
–
–
–
Prepayments, accrued income and other assets
95,872
–
–
–
–
Investment associates and jo
int ventures
143
–
–
–
–
Total average assets
204,916
356,450
18,380
5.16
3.27
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
248
Average liab
il
it
ies
2024
Average
non-interest
bearing
balance
$mill
ion
Average
interest
bearing
balance
$mill
ion
Interest
expense
$mill
ion
Rate paid
%
Rate paid
total balance
%
Deposits by banks
12,443
20,302
728
3.59
2.22
Customer accounts:
Current accounts
29,308
106,029
1,290
1.22
0.95
Savings deposits
–
19,917
570
2.86
2.86
Time deposits
9,454
98,355
4,987
5.07
4.63
Other deposits
34,254
9,428
476
5.05
1.09
Debt securit
ies
in issue
11,633
27,857
1,653
5.93
4.19
Due to parent companies, subsid
iary undertak
ings
& other related parties
–
29,325
4,573
15.59
15.59
Accruals, deferred income and other liab
il
it
ies
94,604
572
36
6.29
0.04
Subordinated liab
il
it
ies and other borrowed funds
–
12,975
597
4.60
4.60
Non-controlling interests
1,041
–
–
-
-
Shareholders’ funds
33,052
–
–
-
-
225,789
324,760
14,910
4.59
2.71
Adjustment for trading book funding cost and others
(1,898)
Total average liab
il
it
ies and shareholders’ funds
225,789
324,760
13,012
4.01
2.36
Average liab
il
it
ies
2023
Average
non-interest
bearing
balance
$mill
ion
Average
interest
bearing
balance
$mill
ion
Interest
expense
$mill
ion
Rate paid
%
Rate paid
total balance
%
Deposits by banks
10,587
20,824
626
3.01
1.99
Customer accounts:
Current accounts
28,008
100,986
2,839
2.81
2.20
Savings deposits
–
18,922
512
2.71
2.71
Time deposits
8,310
105,927
5,099
4.81
4.46
Other deposits
44,163
5,008
173
3.45
0.35
Debt securit
ies
in issue
10,246
31,086
1,771
5.70
4.28
Due to parent companies, subsid
iary undertak
ings
& other related parties
–
26,744
2,116
7.91
7.91
Accruals, deferred income and other liab
il
it
ies
103,131
584
35
5.99
0.03
Subordinated liab
il
it
ies and other borrowed funds
–
12,341
602
4.88
4.88
Non-controlling interests
1,184
–
–
-
-
Shareholders’ funds
33,315
–
–
-
-
238,944
322,422
13,773
4.27
2.45
Adjustment for trading book funding cost and others
(1,087)
Total average liab
il
it
ies and shareholders’ funds
238,944
322,422
12,686
3.93
2.26
Supplementary informat
ion cont
inued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
249
Net interest margin
For the purposes of calculating net interest margin the following adjustments are made:
Net interest income is adjusted for trading book funding cost, cash collateral and prime services on interest earning assets,
div
ided by average
interest-earning assets excluding ﬁnanc
ial assets measured at fa
ir value through proﬁt or loss.
2024
$mill
ion
2023
$mill
ion
Interest income
19,310
18,380
Average interest earning assets
351,006
356,450
Gross yield (%)
5.50
5.16
Interest expense
14,910
13,773
Adjustment for trading book funding cost and others
(1,898)
(1,087)
Interest expense adjusted for trading book funding cost and others
13,012
12,686
Average interest-bearing liab
il
it
ies
324,760
322,422
Rate paid (%)
4.01
3.93
Net yield (%)
1.49
1.23
Net interest income adjusted for trading book funding cost and others
6,298
5,694
Net interest margin (%)
1.79
1.60
Volume and price variances
The following table analyses the estimated change in the Group’s net interest income attributable to changes in the
average volume of interest-earning assets and interest-bearing liab
il
it
ies, and changes
in their respective interest rates
for the years presented. Volume and rate variances have been determined based on movements in average balances
and average exchange rates over the year and changes in interest rates on average interest-earning assets and average
interest- bearing liab
il
it
ies.
2024 versus 2023
2023 versus 2022
(Decrease)/increase in
interest due to:
Net increase/
(decrease) in
interest
$mill
ion
(Decrease)/increase in
interest due to:
Net increase/
(decrease) in
interest
$mill
ion
Volume
$mill
ion
Rate
$mill
ion
Volume
$mill
ion
Rate
$mill
ion
Interest earning assets
Cash and unrestricted balances at central banks
(452)
139
(313)
575
1,493
2,068
Loans and advances to banks
(121)
242
121
(189)
729
540
Loans and advances to customers
421
586
1,007
325
3,359
3,684
Investment securit
ies
(142)
260
118
(47)
2,346
2,299
Due from subsid
iary undertak
ings and other
related parties
47
(50)
(3)
(6)
30
24
Total interest earning assets
(247)
1,177
930
658
7,957
8,615
Interest bearing liab
il
it
ies
Subordinated liab
il
it
ies and other borrowed funds
29
(34)
(5)
(33)
73
40
Deposits by banks
(19)
121
102
(59)
327
268
Customer accounts:
Current accounts and savings deposits
90
(1,886)
(1,796)
(243)
3,025
2,782
Time and other deposits
(156)
654
498
612
2,975
3,587
Debt securit
ies
in issue
(192)
74
(118)
124
1,280
1,404
Due to parent companies, subsid
iary undertak
ings &
other related parties
403
2,053
2,456
(58)
436
378
Total interest bearing liab
il
it
ies
155
982
1,137
343
8,116
8,459
Supplementary informat
ion cont
inued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
250
Return on assets
2024
$mill
ion
2023
$mill
ion
Proﬁt attributable to shareholders
2,943
3,208
Total assets
563,534
538,579
Return on assets
1
0.5%
0.6%
1
Represents proﬁt attributable to shareholders div
ided by the total assets of the Group
The following table summarises the number of employees with
in the Group and Company:
Group
2024
2023
Business
Support
services
Total
Business
Support
services
Total
At 31 December
19,252
46,450
65,702
19,611
49,619
69,230
Average for the year
19,582
48,114
67,696
19,958
49,417
69,375
Company
2024
2023
Business
Support
services
Total
Business
Support
services
Total
At 31 December
7,880
12,307
20,187
8,245
13,493
21,738
Average for the year
8,162
12,927
21,089
8,479
13,483
21,962
Supplementary informat
ion cont
inued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
251
Important notices
Forward-looking statements
The informat
ion
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
lim
itat
ion, project
ions, est
imates, commitments, plans, approaches, ambit
ions and targets (
includ
ing, w
ithout lim
itat
ion,
ESG commitments, ambit
ions and targets). Forward-look
ing statements often use words such as ‘may’, ‘could’, ‘will’, ‘expect’,
‘intend’, ‘estimate’, ‘antic
ipate’, ‘bel
ieve’, ‘plan’, ‘seek’, ‘aim’, ‘continue’ or other words of sim
ilar mean
ing to any of the foregoing.
Forward-looking statements may also (or addit
ionally) be
ident
iﬁed by the fact that they do not relate only to h
istor
ical or
current facts.
By their very nature, forward-looking statements are subject to known and unknown risks and uncertaint
ies and other
factors that could cause actual results, and the Group’s plans and objectives, to d
iffer materially from those expressed or
impl
ied
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 object
ives to d
iffer materially from
those expressed or impl
ied
in forward-looking statements. The factors include (but are not lim
ited to): changes
in global,
polit
ical, econom
ic, business, competit
ive and market forces or cond
it
ions, or
in future exchange and interest rates; changes in
environmental, geopolit
ical, soc
ial or physical risks; legal, regulatory and policy developments, includ
ing regulatory measures
addressing climate change and broader sustainab
il
ity-related issues; the development of standards and interpretat
ions,
includ
ing evolv
ing requirements and practices in ESG reporting; the abil
ity of the Group, together w
ith governments and
other stakeholders to measure, manage, and mit
igate the
impacts of climate change and broader sustainab
il
ity-related
issues effectively; risks aris
ing out of health cr
ises and pandemics; risks of cyber-attacks, data, informat
ion or secur
ity
breaches or technology failures involv
ing the Group; changes
in tax rates or policy; future business combinat
ions or
dispos
it
ions; and other factors specif
ic to the Group,
includ
ing those
ident
iﬁed
in this document and ﬁnanc
ial 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 activ
it
ies of the Group, they should not be taken as a representation that such trends or activ
it
ies 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 histor
ical or publ
ished 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 discla
ims any obl
igat
ion to rev
ise or update any forward-looking statement contained
with
in th
is document, regardless of whether those statements are affected as a result of new informat
ion, future events or
otherwise.
Please refer to this document and the ﬁnanc
ial statements of the Group for a d
iscuss
ion of certa
in of the risks and factors
that could adversely impact the Group’s actual results, and cause its plans and object
ives, to d
iffer materially from those
expressed or impl
ied
in any forward-looking statements.
Financ
ial
instruments
Nothing in this document shall constitute, in any jur
isd
ict
ion, an offer or sol
ic
itat
ion to sell or purchase any securit
ies or other
ﬁnancial
instruments, nor shall it constitute a recommendation or advice in respect of any securit
ies or other ﬁnancial
instruments or any other matter.
Caution regarding climate and environment related informat
ion
Some of the climate and environment related informat
ion
in this document is subject to certain lim
itat
ions, and therefore
the reader should treat the informat
ion prov
ided, as well as conclusions, project
ions and assumpt
ions drawn from such
informat
ion, w
ith caution. The informat
ion may be l
im
ited due to a number of factors, wh
ich include (but are not lim
ited to):
a lack of reliable data; a lack of standardisat
ion of data; and future uncerta
inty. The informat
ion
includes externally sourced
data that may not have been verif
ied. Furthermore, some of the data, models and methodolog
ies used to create the
informat
ion
is subject to adjustment which is beyond our control, and the informat
ion
is subject to change without notice.
Supplementary informat
ion cont
inued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
252
Glossary
AT1 or Addit
ional T
ier 1 capital
Addit
ional T
ier 1 capital consists of instruments other than Common Equity Tier 1 that meet the condit
ions set out
in
Article 52(1) of the Capital Requirements Regulation (as it forms part of UK domestic law), as well as the share premium
accounts related to those instruments..
Addit
ional value adjustment
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.
Advances-to-deposits/customer advances-to-deposits (ADR) ratio
The ratio of total loans and advances tocustomers relative to total customer accounts, excluding approved balances held
with central banks, conﬁrmed as repayable at the point of stress. A low advances-to-deposits ratio demonstrates that
customer accounts exceed customer loans resulting from emphasis placed on generating a high level of stable funding from
customers.
ASEAN
Associat
ion of South East As
ian Nations (ASEAN) which includes the Group’s operations in Brunei, Indonesia, Malaysia,
Phil
ipp
ines, Singapore, Thailand and Vietnam.
AUM or Assets under management
Total market value of assets such as deposits, securit
ies and funds held by the Group on behalf of the cl
ients.
Basel II
The capital adequacy framework issued by the Basel Committee on Banking Supervis
ion (BCBS)
in June 2006 in the form
of the International Convergence of Capital Measurement and Capital Standards.
Basel III
The global regulatory standards on bank capital adequacy and liqu
id
ity, orig
inally
issued in December 2010 and updated in
June 2011. In December 2017, the BCBS published a document setting out the ﬁnal
isat
ion of the Basel III framework. The
requirements are expected to begin to be implemented in the UK from 2026.
BCBS or Basel Committee on Banking Supervis
ion
A forum on banking supervisory matters which develops global supervisory standards for the banking industry. Its members
are ofﬁcials from 45 central banks or prudent
ial supervisors from 28 countries and territor
ies.
Basis point (bps)
One hundredth of a per cent (0.01 per cent); 100 basis points is 1 per cent.
CRD or Capital Requirements Direct
ive
An EU capital adequacy legislat
ive package largely
implemented or onshored into UK law. The package comprises the
Capital Requirements Direct
ive and the Cap
ital Requirements Regulation (CRR) and implements the Basel III framework
together with transit
ional arrangements for some of
its requirements. CRD IV came into force on 1 January 2014. The EU CRR II
and CRD V amending the exist
ing 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 has recently implemented the UK’s version of CRR II.
Capital-lite income
Income derived from products with low RWA consumption or products which are non-funding in nature.
Capital resources
Sum of Tier 1 and Tier 2 capital after regulatory adjustments.
CGU or Cash-generating unit
The smallest ident
iﬁable 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.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
253
Glossary continued
Clawback
An amount an ind
iv
idual is required to pay back to the Group, which has to be returned to the Group under
certain circumstances
Climate Risk Assessment (CRA)
The CRA is an internal assessment conducted on in-scope corporate clients to ident
ify cl
imate risks, across Physical and
Transit
ion r
isks, that may lead to addit
ional cred
it risks for the Group. The assessment is conducted across four sections, using
Group's in house methodology as well as client public disclosures. The CRA produces a BRAG score ind
icat
ing the level of
climate risk of an entity and is supported by long-form analysis of the drivers of this score.
Commercial real estate
Includes ofﬁce build
ings,
industr
ial property, med
ical centres, hotels, malls, retail stores, shopping centres, farm land,
multi-family housing build
ings, warehouses, garages, and
industr
ial propert
ies. Commercial real estate loans are those
backed by a package of commercial real estate assets.
CET1 or Common Equity Tier 1 capital
Common Equity Tier 1 capital consists of the items, includ
ing the common shares
issued by the Group and related share
premium, retained earnings, accumulated other comprehensive income and other disclosed reserves, elig
ible noncontroll
ing
interests and regulatory adjustments required in the calculation of Common Equity Tier 1, set out in Article 26(1) of the of the
Capital Requirements Regulation (as it forms part of UK domestic law), capable of being available to the inst
itut
ion for
unrestricted and immed
iate use to absorb losses as soon as these occur.
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 ﬁnanc
ial
instrument, at which point all the remain
ing
outstanding princ
ipal 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
procyclical
ity
in the ﬁnanc
ial system. CCyB as deﬁned
in the Basel III standard provides for an addit
ional cap
ital requirement
of up to 2.5 per cent of risk-weighted assets in a given jur
isd
ict
ion. The Bank of England’s F
inanc
ial Pol
icy Committee has
the power to set the CCyB rate for the United Kingdom. Each bank must calculate its ‘inst
itut
ion-specif
ic’ CCyB rate,
deﬁned as the weighted average of the CCyB rates in effect across the jur
isd
ict
ions
in which it has credit exposures.
The inst
itut
ion-specif
ic CCyB rate
is then applied to a bank’s total risk-weighted assets.
Court
The Court is the decis
ion mak
ing body of Standard Chartered Bank Group.
It is collectively responsible for: leading the Group
with
in a framework of prudent and effect
ive controls, the long-term success of the Group and the delivery of sustainable
value to all stakeholders.
The membership of the Court is comprised of all but two independent non-executive directors from
the PLC Board, executive directors from the PLC Board and directors who are appointed solely to the Court.
Cover ratio
The ratio of impa
irment prov
is
ions for each stage to the gross loan exposure for each stage.
Cover ratio after collateral/cover ratio includ
ing collateral
The ratio of impa
irment prov
is
ions for stage 3 loans and real
isable value of collateral held against these nonperforming loan
exposures to the gross loan exposure of stage 3 loans.
Counterparty credit risk
The ratio of impa
irment prov
is
ions for stage 3 loans and real
isable value of collateral held against these nonperforming loan
exposures to the gross loan exposure of stage 3 loans.
CCF or Credit conversion factor
An estimate of the amount the Group expects a customer to have drawn further on a facil
ity l
im
it at the po
int of default.
This is either prescribed by CRR or modelled by the bank.
CDS or Credit default swaps
A credit derivat
ive
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.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
254
Glossary continued
Credit grade
A standard alphanumeric Credit Risk grade system is used for CIB Client Coverage. The numeric grades run from 1 to 14 and
some of the grades are further sub-classif
ied. Lower numer
ic credit grades are ind
icat
ive of a lower likel
ihood of default.
Credit grades 1 to 12 are assigned to performing customers, while credit grades 13 and 14 are assigned to nonperforming or
defaulted customers.
Credit inst
itut
ions
An inst
itut
ion whose business is to receive deposits or other repayable funds from the public and to grant credits for its
own account.
Credit risk mit
igat
ion
Credit risk mit
igat
ion is a process to mit
igate potent
ial credit losses from any given account, customer or portfolio by
using a range of tools such as collateral, netting agreements, credit insurance, credit derivat
ives and guarantees.
CVA or Credit valuation adjustments
An adjustment to the fair value of derivat
ive contracts that reﬂects the poss
ib
il
ity 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 ind
iv
iduals and companies which are not credit inst
itut
ions includ
ing secur
it
ies sold under
repurchase agreement (see repo/reverse repo). Such funds are recorded as liab
il
it
ies
in the Group’s balance sheet under
customer accounts.
Days past due
One or more days that interest and/or princ
ipal payments are overdue based on the contractual terms.
DVA or Debit valuation adjustment
An adjustment to the fair value of derivat
ive contracts that reﬂects the poss
ib
il
ity that the Group may default and not pay
the full market value of contracts.
Debt securit
ies
Debt securit
ies are assets on the Group’s balance sheet and represent cert
if
icates of
indebtedness of credit inst
itut
ions,
public bodies or other undertakings excluding those issued by central banks.
Debt securit
ies
in issue
Debt securit
ies
in issue are transferable certif
icates of
indebtedness of the Group to the bearer of the certif
icate. These are
liab
il
it
ies of the Group and
include certif
icates of depos
its.
Deferred tax asset
Income taxes recoverable in future periods in respect of deductible temporary differences between the accounting and tax
base of an asset or liab
il
ity 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 liab
il
ity
Income taxes payable in future periods in respect of taxable temporary differences between the accounting and tax base
of an asset or liab
il
ity that will result in taxable amounts in future periods.
Default
Financ
ial assets
in default represent those that are at least 90 days past due in respect of princ
ipal or
interest and/or where
the assets are otherwise considered to be unlikely to pay, includ
ing those that are cred
it-impa
ired.
Deﬁned beneﬁt obligat
ion
The present value of expected future payments required to settle the obligat
ions of a deﬁned beneﬁt scheme result
ing from
employee service.
Deﬁned beneﬁt scheme
Pension or other post-retirement beneﬁt scheme other than a deﬁned contribut
ion scheme.
Deﬁned contribut
ion scheme
A pension or other post-retirement beneﬁt scheme where the employer’s obligat
ion
is lim
ited to
its contribut
ions to the fund.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
255
Glossary continued
Delinquency
A debt or other ﬁnancial obl
igat
ion
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.
Deposits by banks
Deposits by banks comprise amounts owed to other domestic or foreign credit inst
itut
ions by the Group includ
ing secur
it
ies
sold under repo.
Div
idend 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 exhib
its r
isks or potential weaknesses of a material nature requir
ing closer mon
itor
ing,
supervis
ion, or attent
ion by management. Weaknesses in such a borrower’s account, if left uncorrected, could result in
deteriorat
ion of repayment prospects and the l
ikel
ihood of be
ing downgraded to credit grade 12 or worse. When an account
is on early alert, it is classif
ied as e
ither purely precautionary or non-purely precautionary. A purely precautionary account is
one that exhib
its early alert character
ist
ics, but these do not present any
imm
inent cred
it concern. If the symptoms present an
imm
inent cred
it concern, an account will be considered for classif
icat
ion as non-purely precautionary.
Effective tax rate
The tax on proﬁt/ (losses) on ordinary activ
it
ies as a percentage of proﬁt/ (loss) on ordinary activ
it
ies before taxation.
Encumbered assets
On-balance sheet assets pledged or used as collateral in respect of certain of the Group’s liab
il
it
ies.
ESG
Environmental, Social and Governance
EU or European Union
The European Union (EU) is a polit
ical and econom
ic union of 27 member states that are located primar
ily
in Europe.
Eurozone
Represents the 20 EU countries that have adopted the euro as their common currency.
ECL or Expected credit loss
Represents the present value of expected cash shortfalls over the residual term of a ﬁnanc
ial asset, undrawn comm
itment or
ﬁnancial guarantee.
Expected loss
The Group measure of antic
ipated 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 antic
ipated loss based on probab
il
ity 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.
EAD or Exposure at default
The estimat
ion of the extent to wh
ich 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 princ
ipal, so that exposure
is typically less than the approved loan lim
it.
ECAI or External Credit Assessment Institut
ion
External credit ratings are used to assign risk-weights under the standardised approach for sovereigns, corporates and
inst
itut
ions. The external ratings are from credit rating agencies that are registered or certif
ied
in accordance with the credit
rating agencies regulation or from a central bank issu
ing cred
it ratings which is exempt from the applicat
ion of th
is
regulation.
Facil
itated Em
iss
ions
Facil
itated em
iss
ions refer to the greenhouse gas em
iss
ions that result from the fac
il
itat
ion of ﬁnanc
ial transact
ions by
ﬁnancial
inst
itut
ions.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
256
Glossary continued
FCA or Financ
ial Conduct Author
ity
The Financ
ial Conduct Author
ity regulates the conduct of ﬁnanc
ial ﬁrms and, for certa
in ﬁrms, sets prudential standards in
the UK. It has a strategic object
ive to ensure that the relevant markets funct
ion well.
Financed Emiss
ions
Financed emiss
ions are the em
iss
ions attr
ibuted to a ﬁnanc
ial
inst
itut
ion when ﬁnanc
ing a cl
ient.
Forbearance
Forbearance takes place when a concession is made to the contractual terms of a loan in response to an obligor’s ﬁnanc
ial
diff
icult
ies. The Group classif
ies such mod
if
ied loans as e
ither ‘Forborne – not impa
ired loans’ or ‘Loans subject to forbearance
– impa
ired’. Once a loan
is categorised as either of these, it will remain in one of these two categories until the loan matures or
satisf
ies the ‘cur
ing’ condit
ions descr
ibed in Note 8 to the ﬁnanc
ial statements.
Forborne – not impa
ired loans
Loans where the contractual terms have been modif
ied due to ﬁnancial d
iff
icult
ies of the borrower, but the loan is not
considered to be impa
ired. 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.
FVA or Funding valuation adjustments
FVA reﬂects an adjustment to fair value in respect of derivat
ive contracts that reﬂects the fund
ing costs that the market
partic
ipant would
incorporate when determin
ing an ex
it price.
G-SIBs or Global Systemically Important Banks
Global banking ﬁnanc
ial
inst
itut
ions whose size, complexity and systemic interconnectedness mean that their distress or
failure would cause sign
iﬁcant d
isrupt
ion to the w
ider ﬁnanc
ial system and econom
ic activ
ity. The l
ist of G-SIBs is assessed
under a framework established by the 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 Institut
ions (G-SIIs).
G-SII buffer
A CET1 capital buffer which results from designat
ion as a G-SII. The G-SII 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 EU, the G-SII buffer is implemented
via CRD IV as Global Systemically Important Institut
ions (G-SII) buffer requ
irement.
Hong Kong regional hub
Standard Chartered Bank (Hong Kong) Lim
ited and
its subsid
iar
ies includ
ing the pr
imary operating entit
ies
in China, Korea
and Taiwan. Standard Chartered PLC is the ultimate parent company of Standard Chartered Bank (Hong Kong) Lim
ited.
Interest rate risk
The risk of an adverse impact on the Group’s income statement due to changes in interest rates.
IRB or internal ratings-based approach
Risk-weight
ing methodology
in accordance with the Basel Capital Accord where capital requirements are based on a ﬁrm’s
own estimates of prudential parameters.
Internal model approach
The approach used to calculate market risk capital and RWA with an internal market risk model approved by the PRA under
the terms of CRD/CRR.
IAS or International Accounting Standard
A standard that forms part of the International Financ
ial Report
ing Standards framework.
IASB or International Accounting Standards Board
An independent standard-setting body responsible for the development and publicat
ion of IFRS, and approv
ing
interpretat
ions of IFRS standards that are recommended by the IFRS Interpretat
ions Committee (IFRIC).
IFRS or International Financ
ial Report
ing Standards
A set of internat
ional account
ing standards developed and issued by the International Accounting Standards Board,
consist
ing of pr
inc
iples-based gu
idance contained with
in IFRSs and IASs. All compan
ies that have issued publicly traded
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
257
Glossary continued
securit
ies
in the EU are required to prepare annual and inter
im reports under IFRS and IAS standards that have been
endorsed by the EU.
IFRIC
The IFRS Interpretations Committee supports the IASB in provid
ing author
itat
ive gu
idance on the accounting treatment of
issues not specif
ically dealt w
ith by exist
ing IFRSs and IASs.
Income Return on risk weighted assets (IRORWA)
Annualised income excluding Debit Valuation Adjustment as a percentage of Average RWA..
Investment grade
A debt security, treasury bill or sim
ilar
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, includ
ing certa
in exposures held off-balance
sheet as adjusted by stipulated credit conversion factors. Intended to be a simple, non-risk-based backstop measure.
Liqu
idat
ion portfolio
A portfolio of assets which is beyond our current risk appetite metrics and is held for liqu
idat
ion.
LCR or Liqu
id
ity coverage ratio
The ratio of the stock of high-quality liqu
id assets to expected net cash outﬂows under stressed cond
it
ions over the follow
ing
30 days. High-quality liqu
id assets should be unencumbered, l
iqu
id
in markets during a time of stress, and ideally, be central
bank elig
ible.
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 facil
it
ies.
Loans and advances to customers
This represents 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 and advances to banks
Amounts loaned to credit inst
itut
ions includ
ing secur
it
ies bought under Reverse repo.
LTV or loan-to-value ratio
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 determin
ing the appropr
iate level of risk for the loan and therefore the correct
price of the loan to the borrower.
Loans past due
Loans on which payments have been due for up to a maximum of 90 days includ
ing those on wh
ich partial payments are
being made.
Loans subject to forbearance – impa
ired
Loans where the terms have been renegotiated on terms not consistent with current market levels due to ﬁnanc
ial d
iff
icult
ies
of the borrower. Loans in this category are necessarily impa
ired. See ‘Forbearance’.
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.
LGD or Loss given default
The percentage of an exposure that a lender expects to lose in the event of obligor default.
Low returning clients
See ‘Perennial sub-optimal clients’.
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 specif
ic crystall
ised risk, behaviour, conduct or adverse performance outcome.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
258
Glossary continued
Master netting agreement
An agreement between two counterparties that have multiple derivat
ive contracts w
ith 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 terminat
ion of,
any one contract.
Mezzanine capital
Financ
ing that comb
ines debt and equity characterist
ics. For example, a loan that also confers some proﬁt part
ic
ipat
ion to
the lender.
MREL or min
imum requ
irement for own funds and elig
ible l
iab
il
it
ies
A requirement under the Bank Recovery and Resolution Direct
ive for EU resolut
ion authorit
ies and the Bank of England
(as the UK resolution authority) to set a min
imum requ
irement for own funds and elig
ible l
iab
il
it
ies for bank
ing groups,
implement
ing the FSB’s Total Loss Absorb
ing Capacity (TLAC) standard. MREL is intended to ensure that there is sufﬁc
ient
equity and specif
ic types of l
iab
il
it
ies to fac
il
itate an orderly resolut
ion that min
im
ises any impact on ﬁnanc
ial stab
il
ity and
ensures the continu
ity of cr
it
ical funct
ions and avoids exposing taxpayers to loss.
Net asset value (NAV) per share
Ratio of net assets (total assets less total liab
il
it
ies) to the number of ord
inary shares outstanding at the end of
a reporting period.
Net exposure
The aggregate of loans and advances to customers/loans and advances to banks after impa
irment prov
is
ions, restr
icted
balances with central banks, derivat
ives (net of master nett
ing agreements), investment debt and equity securit
ies,
and letters of credit and guarantees.
NII or Net interest income
The difference between interest received on assets and interest paid on liab
il
it
ies.
NSFR or Net stable funding ratio
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 liqu
id
ity measure designed to restrain the amount of wholesale borrowing and encourage stable funding
over a one-year time horizon.
Net Zero Roadmap
Net Zero refers to a condit
ion
in which human-caused residual greenhouse gas emiss
ions (GHG) are balanced by human-led
removals over a specif
ied per
iod and with
in spec
if
ied boundar
ies. Our Net Zero Roadmap refers to the short and medium-
term objectives and quant
if
iable targets the Group has set to ach
ieve net zero carbon emiss
ions
in our operations by 2025
and in our ﬁnanced emiss
ions by 2050.
NPLs or non-performing loans
An NPL is any loan that is more than 90 days past due or is otherwise ind
iv
idually impa
ired. Th
is excludes Retail loans
renegotiated at or after 90 days past due, but on which there has been no default in interest or princ
ipal payments for
more than 180 days since renegotiat
ion, and aga
inst which no loss of princ
ipal
is expected.
Non-linear
ity
Non-linear
ity of expected cred
it 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 NII
The sum of net fees andcommiss
ion, net trad
ing income and other operating income.
Operating expenses
Staff and premises costs, general and admin
istrat
ive expenses, depreciat
ion and amort
isat
ion.
Operating income or operating proﬁt
Net interest, net fee and net trading income, as well as other operating income.
OTC or Over-the-counter derivat
ives
A bilateral transaction (e.g. derivat
ives) that
is not exchange traded and that is valued using valuation models.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
259
Glossary continued
OCA or Own credit adjustment
An adjustment to the Group’s issued debt designated at fair value through proﬁt or loss that reﬂects the possib
il
ity that
the Group may default and not pay the full market value of the contracts.
Perennial sub-optimal clients
Clients that have returned below 3% return on risk-weighted assets for the last three years
Physical risks
The risk of increased extreme weather events includ
ing ﬂood, drought and sea level r
ise.
Pillar 1
The ﬁrst pillar of the three pillars of the Basel framework which provides the approach to calculation of the min
imum
capital requirements for credit, market and operational risk. Min
imum cap
ital 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
mit
igants are not ava
ilable.
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 comparabil
ity between banks and further promotes
improvements in risk practices.
Prior
ity Bank
ing
Prior
ity Bank
ing customers are ind
iv
iduals who have met certain criter
ia for depos
its, AUM, mortgage loans or monthly
payroll. Criter
ia var
ies by country.
Private equity investments
Equity securit
ies
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 inst
itut
ional
investors and used to fund investment strategies such as leveraged buyouts, venture capital, growth capital, distressed
investments and mezzanine capital.
PD or Probabil
ity of default
PD is an internal estimate for each borrower grade of the likel
ihood that an obl
igor will default on an obligat
ion over a g
iven
time horizon.
Probabil
ity we
ighted
Obtained by consider
ing the values the metr
ic can assume, weighted by the probabil
ity of each value occurr
ing.
Proﬁt (loss) attributable to ordinary shareholders
Proﬁt (loss) for the year after non-controlling interests and div
idends declared
in respect of preference shares classif
ied
as equity.
PVA or Prudent valuation adjustment
An adjustment to CET1 capital to reﬂect the difference between fair value and prudent value posit
ions, where the appl
icat
ion
of prudence results in a lower absolute carrying value than recognised in the ﬁnanc
ial statements.
PRA or Prudential Regulation Authority
The Prudential Regulation Authority is the statutory body responsible for the prudential supervis
ion of banks, bu
ild
ing
societ
ies, cred
it unions, insurers and a small number of sign
iﬁcant
investment ﬁrms in the UK. The PRA is a part of the
Bank of England.
Rate paid
Interest expense adjusted for interest expense incurred on amortised cost liab
il
it
ies used to fund ﬁnancial
instruments held at
fair value through proﬁt or loss, div
ided by average
interest bearing liab
il
it
ies
Regulatory consolidat
ion
The regulatory consolidat
ion of Standard Chartered PLC d
iffers from the statutory consolidat
ion
in that it includes Ascenta IV,
Global Dig
ital Asset Hold
ings Lim
ited, Olea Global group, Part
ior Holdings Pte. Ltd., SBI Zodia Custody Co. Ltd, Seychelles
International Mercantile Banking Corporation Lim
ited., Vault22 Solut
ions Holdings Ltd, and all of the legal entit
ies
in the
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
260
Glossary continued
Currency Fair group on a proportionate consolidat
ion bas
is. These entit
ies are cons
idered associates for statutory accounting
purposes.
The regulatory consolidat
ion further excludes the follow
ing entit
ies, wh
ich are consolidated for statutory accounting
purposes; Audax Financ
ial Technology Pte. Ltd, Furaha F
inserve Uganda Lim
ited, Letsbloom Ind
ia Private Lim
ited, Letsbloom
Pte. Ltd., Pegasus Dealmaking Pte. Ltd., PointSource Technologies Pte. Ltd., PT Labamu Sejahtera Indonesia, Qatalyst Pte. Ltd.,
SCV Research and Development Pte. Ltd., SCV Research and Development Pvt. Ltd., Solv Vietnam Company Lim
ited, Solvezy
Technology Ghana Ltd, Solvezy Technology Kenya Lim
ited, Standard Chartered Assurance L
im
ited, Standard Chartered
Bancassurance Intermediary Lim
ited, Standard Chartered Bank Insurance Agency (Propr
ietary) Lim
ited, Standard Chartered
Botswana Education Trust, Standard Chartered Isle of Man Lim
ited, TASConnect (Hong Kong) Pr
ivate Lim
ited, TASConnect
(Malaysia) Sdn. Bhd., TASConnect (Shanghai) Financ
ial Technology Pte. Ltd and Taw
i Fresh Kenya Lim
ited.
Repo/reverse repo
A repurchase agreement or repo is a short-term funding agreement, which allows a borrower to sell a ﬁnanc
ial asset,
such as asset-backed securit
ies 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.
Resident
ial mortgage
A loan to purchase a resident
ial property wh
ich 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.
RoRWA or Return on risk-weighted assets
Proﬁt before tax for year as a percentage of RWA.
RoTE or Return on ordinary shareholders’ tangible equity
The ratio of the current year’s proﬁt available for distr
ibut
ion to ordinary shareholders to the average tangible equity, being
ordinary shareholders’ equity less the average intang
ible assets for the report
ing period. Where a target RoTE is stated, this is
based on proﬁt and equity expectations for future periods.
RWA or Risk-weighted assets
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 provis
ions.
Risks-not-in-VaR (RNIV)
A framework for ident
ify
ing and quantify
ing marg
inal 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 histor
ical market data not be
ing available.
Roll rate
Uses a matrix that gives average loan migrat
ion rate from del
inquency states from period to period. A matrix multipl
icat
ion is
then performed to generate the ﬁnal PDs by delinquency bucket over different time horizons.
Scope 1 emiss
ions
Direct GHG emiss
ions that occur from sources owned or controlled by the Group -
i.e., emiss
ions from combust
ion in owned or
controlled boilers, furnaces, vehicles, as well as fugit
ive em
iss
ions from pressure conta
in
ing equ
ipment at Group locations.
Scope 2 emiss
ions
Indirect GHG emiss
ions from the generat
ion of purchased or acquired electric
ity, steam, heat
ing, or cooling consumed by the
Group.
Scope 3 emiss
ions
All ind
irect GHG em
iss
ions (not
included in Scope 2) that occur in the value chain of the Group, aris
ing from sources not
controlled by the Group. This comprises of both upstream and downstream value chain emiss
ions and
includes absolute
ﬁnanced emiss
ions.
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 orig
inat
ion. All other secured loans are considered to be partly secured.
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
261
Securit
isat
ion
Securit
isat
ion is a process by which credit exposures are aggregated into a pool, which is used to back new securit
ies. Under
tradit
ional secur
it
isat
ion transactions, assets are sold to a structured entity which then issues new securit
ies to
investors at
different levels of senior
ity (cred
it tranching). This allows the credit quality of the assets to be separated from the credit rating
of the orig
inat
ing inst
itut
ion and transfers risk to external investors in a way that meets their risk appetite. Under synthetic
securit
isat
ion transactions, the transfer of risk is achieved by the use of credit derivat
ives or guarantees, and the exposures
being securit
ised rema
in exposures of the orig
inat
ing inst
itut
ion.
Senior debt
Debt that takes prior
ity over other unsecured or otherw
ise more ‘ jun
ior’ debt owed by the
issuer. Senior debt has greater
senior
ity
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.
SICR or Sign
iﬁcant
increase in credit risk
Assessed by comparing the risk of default of an exposure at the reporting date to the risk of default at orig
inat
ion (after
consider
ing the passage of t
ime).
Solo
The solo regulatory group as listed in the Prudential Regulation Authority written notice dated 16 September 2024 differs from
Standard Chartered Company in that it includes the full consolidat
ion of four subs
id
iar
ies, namely Standard Chartered
Holdings (International) B.V., Standard Chartered Grindlays PTY Lim
ited, SCMB Overseas L
im
ited, and Corras
i Covered Bonds
LLP.
Sovereign exposures
Exposures to central governments and central government departments, central banks and entit
ies owned or guaranteed
by the aforementioned. Sovereign exposures, as deﬁned by the European Banking Authority, include only exposures to
central governments.
Stage 1
Assets have not experienced a sign
iﬁcant
increase in credit risk since orig
inat
ion and impa
irment recogn
ised on the basis of
12 months expected credit losses.
Stage 2
Assets have experienced a sign
iﬁcant
increase in credit risk since orig
inat
ion and impa
irment
is recognised on the basis of
lifet
ime expected cred
it losses.
Stage 3
Assets that are in default and considered credit-impa
ired (non-perform
ing loans).
Standardised approach
In relation to credit risk, a method for calculating credit risk capital requirements using External Credit Assessment
Institut
ions (ECAI) rat
ings and supervisory risk weights. In relation to operational risk, a method of calculating the operational
capital requirement by the applicat
ion of a superv
isory deﬁned percentage charge to the gross income of eight specif
ied
business lines.
Structured note
An investment tool which pays a return linked to the value or level of a specif
ied asset or
index and sometimes offers
capital protection if the value declines. Structured notes can be linked to equit
ies,
interest rates, funds, commodit
ies and
foreign currency.
Subordinated liab
il
it
ies
Liab
il
it
ies wh
ich, in the event of insolvency or liqu
idat
ion of the issuer, are subordinated to the claims of depositors and other
creditors of the issuer.
Sustainab
il
ity Aspirat
ions
Our Sustainab
il
ity Aspirat
ions are consol
idated into four overarching long-term goals, each supported by key performance
ind
icators that we use to measure our progress and outcomes
in areas in which we can make a contribut
ion to the del
ivery of
the UN Sustainable Development Goals (SDGs).
Sustainable Finance income
Income generated from Sustainable Finance products and clients as listed in the Green and Sustainable Product Framework.
Addit
ional products may be approved throughout the year by the Susta
inable Finance Governance Committee.
Glossary continued
Standard Chartered Bank
Directors’ Report and Financ
ial Statements 2024
262
Glossary continued
Tier 1 capital
The sum of Common Equity Tier 1 capital and Addit
ional T
ier 1 capital.
Tier 1 capital ratio
Tier 1 capital as a percentage of risk-weighted assets.
Tier 2 capital
Tier 2 capital comprises qualify
ing subord
inated liab
il
it
ies and related share prem
ium accounts.
TLAC or Total loss absorbing capacity
An internat
ional standard for TLAC
issued by the FSB, which requires G-SIBs to have sufﬁc
ient loss-absorb
ing and
recapital
isat
ion capacity available in resolution, to min
im
ise impacts on ﬁnanc
ial stab
il
ity, ma
inta
in the cont
inu
ity of
crit
ical funct
ions and avoid exposing public funds to loss.
Transit
ion r
isks
The risk of of ﬁnanc
ial
impact due to changes in market dynamics or sectoral economics due to governments’ response to
climate change, as well as competitors and advancements in technology.
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 equit
ies and l
iab
il
it
ies on the Group’s UK tax res
ident entit
ies’ balance sheets.
Key exclusions from chargeable equit
ies and l
iab
il
it
ies
include Tier 1 capital, insured or guaranteed retail deposits, repos
secured on certain sovereign debt and liab
il
it
ies subject to nett
ing.
Unbiased
Not overly optim
ist
ic or pessim
ist
ic, represents informat
ion that
is not slanted, weighted, emphasised, de-emphasised or
otherwise manipulated to increase the probabil
ity that the ﬁnancial
informat
ion w
ill be received favourably or unfavourably
by users.
Unlikely to pay
Indicat
ions of unl
ikel
iness to pay shall
include placing the credit obligat
ion on non-accrued status; the recogn
it
ion of a
specif
ic cred
it adjustment resulting from a sign
iﬁcant perce
ived decline in credit quality subsequent to the Group taking on
the exposure; selling the credit obligat
ion at a mater
ial credit-related economic loss; the Group consenting to a distressed
restructuring of the credit obligat
ion where th
is is likely to result in a dim
in
ished ﬁnanc
ial obl
igat
ion caused by the mater
ial
forgiveness, or postponement, of princ
ipal,
interest or, where relevant fees; ﬁl
ing for the obl
igor's bankruptcy or a sim
ilar order
in respect of an obligor's credit obligat
ion to the Group; the obl
igor has sought or has been placed in bankruptcy or sim
ilar
protection where this would avoid or delay repayment of a credit obligat
ion to the Group.
VaR or Value at Risk
A quantitat
ive measure of market r
isk estimat
ing the potent
ial loss that will not be exceeded in a set time period at a set
statist
ical conﬁdence level.
ViU or Value-in-Use
The present value of the future expected cash ﬂows expected to be derived from an asset or CGU.
Write-downs
After an advance has been ident
iﬁed as
impa
ired and
is subject to an impa
irment prov
is
ion, the stage may be reached
whereby it is concluded that there is no realist
ic prospect of further recovery. Wr
ite-downs will occur when, and to the extent
that, the whole or part of a debt is considered irrecoverable.
XVA
The term used to incorporate credit, debit and funding valuation adjustments to the fair value of derivat
ive ﬁnancial
instruments. See ‘CVA’, ‘DVA’ and ‘FVA’.