Standard Chartered (STAN) investor relations material

Business performance and outlook

• Achieved 9% operating income growth in Q1 2024, with strong momentum continuing into Q2 across core businesses.

• Markets business maintained strong flow income, and banking business showed robust origination and client activity.

• Wealth division saw healthy net new money and client activity, though Q1 inflows should not be annualized.

• A $240 million gain in ventures business from Q2 2023 will not repeat, impacting year-on-year comparisons.

• Guidance for 2026 remains at the low end of the 5%-7% income growth range due to prior episodic gains and flat NII outlook.

Wealth management and regulatory environment

• 60% of net new money in wealth comes from international clients, with a strong platform supporting growth.

• Regulatory changes in China and Hong Kong focus mainly on brokerage, with minimal impact expected on banking flows.

• Most global Chinese client funds are already offshore, limiting regulatory impact.

• Additional compliance steps, such as closing zero-balance accounts, are being implemented.

• No slowdown in net new money inflows observed due to regulatory changes so far.

Transaction banking and deposit growth

• Transaction services income pressured by net interest margin compression, but fee income from services is growing.

• Deposit growth remains strong, especially in Hong Kong and Singapore, driven by affluent and retail segments.

• Technology investments and client relationships support ongoing deposit and liability growth.

• Expectation for non-interest income businesses to outpace NII growth in coming years.

• Core operating deposits growing at mid-single-digit rates, supporting future fee income.