![]() # Standard Chartered Bank #### Reference Number ZC18 #### Directors’ Report and Financial Statements #### 31 December 2025 Incorporated in England with limited liability by Royal Charter 1853 Principal Office: 1 Basinghall Avenue, London, EC2V 5DD, England ## Contents Strategic report 01 Who we are and what we do 02 Market environment 03 Our strategy 04 Our business model 05 Financial review 07 Our business 08 Risk review 12 Our stakeholders Directors’ report 16 Directors and their interests 17 Corporate Governance Statement 22 Statement of Directors’ responsibilities Risk review and Capital review 24 Risk Management Framework 25 Principal risk types 30 Credit risk 60 Traded risk 63 Liquidity and Funding risk 70 Operational and Technology risk 71 Capital review Financial statements 72 Independent Auditors’ report 84 Financial statements 90 Notes to the financial statements Supplementary information 201 Supplementary financial information 205 Supplementary people information 206 Important notices #### About this report The following are company designations as described inthedocument: Standard Chartered Bank Group (Group) – being Standard Chartered Bank and its subsidiaries Standard Chartered PLC Group (PLC Group) – being the ultimate parent and its subsidiaries Standard Chartered Bank (Company) – being the standalone Bank legal entity Standard Chartered PLC (PLC) – being the standalone legal entity of the ultimate parent Sustainability reporting – We adopt an integrated approach tocorporatereporting, embedding non-financial information throughoutour Annual Report. For more information on Standard Chartered please visit sc.com uk.linkedin.com/company/standardchartered facebook.com/standardchartered Unless another currency is specified, the word ‘dollar’ or symbol ‘$’ in this document means US dollar and the word ‘cent’ or symbol ‘c’ means one- hundredth of one US dollar. All disclosures in the Strategic Report, Directors’ Report, Risk Review and Capital Review and Supplementary information are unaudited unless otherwise stated. Unless context requires, within this document, ‘China’ refers to the People’s Republic of China and, for the purposes of this document only, excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special Administrative Region (Macau) and Taiwan. ‘Korea’ or ‘South Korea’ refers to the Republic of Korea. Asia includes Australia, Bangladesh, Brunei, Cambodia, India, Indonesia, Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka, Thailand, Vietnam, China, Hong Kong, Japan, Korea, Macau and Taiwan; Africa includes Botswana, Côte d’Ivoire, Egypt, Ghana, Kenya, Mauritius, Nigeria, South Africa, Tanzania, Uganda, and Zambia. The Middle East includes Bahrain, Iraq, Oman, Pakistan, Qatar, Saudi Arabia andthe United Arab Emirates. Europe includes Belgium, Falkland Islands, France, Germany, Jersey, Luxembourg, Poland, Sweden, Türkiye and the United Kingdom. The Americas includes Argentina, Brazil, Colombia and the United States. A full definition of terms used in this report is included in the glossary section ofthe PLC Group’s Annual Report and Accounts 2025 which is available at www.sc.com/investors Within the tables in this report, blank spaces indicate that the number is notdisclosed, dashes indicate that the number is zero and ‘nm’ stands for notmeaningful. Standard Chartered Bank is incorporated in England and Wales with limited liability and is headquartered in London. The Group’s head office provides guidance on governance and regulatory standards. #### Directors’ Report and Financial Statements 31 December 2025 ![]() #### Strategic report 1 Basis point (bps) and percentage movements are in relation to 31 December 2024, with brackets representing negative movements. 2 Senior leadership is defined as Managing Directors and Band 4 roles (including Management Team). #### Who we are We’re a global bank connecting clients to our differentiated network, offering growth opportunities in the world’s most dynamic markets. Our strategy, which combines cross-border capabilities and leading wealth management expertise, helps us deliver our purpose – to drive commerce and prosperity through our unique diversity. We serve three client segments Corporate & Investment Banking – Supports large corporations, development organisations, governments, and financial institutions with risk management, advisory and financing solutions. Wealth & Retail Banking (WRB) – Serves the local and international banking need of our clients across the wealth continuum with a focus on the affluent segment, while supporting small and medium-sized enterprises. Ventures – Promotes a culture of innovation investing in disruptive financial technology and creating alternative financial service business models, as well as growing our digital bank – Trust. What makes us different Our footprint and network – We help clients do business across cross borders through our network of high-growth and established markets. Our wealth management expertise – We help generations grow and protect their wealth, offering local and global expertise. Our commitment to sustainable finance – We mobilise capital to deliver sustainable and inclusive growth for our clients and the communities we call home. Our emphasis on innovation – We scale fintechs and invest in ventures, supporting digital transformation and product development. Where we operate 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 to where it’s needed the most. We serve clients across 51 locations. Our purpose and culture Our distinctive culture has been developed in pursuit of our purpose – to drive commerce and prosperity through our unique diversity. ## Who we are and what we do Read more on page 5 #### Capital KPIs #### Common Equity Tier 1 ratio 13.3% 1bp #### Non-Financial KPIs Diversity and inclusion: #### Women in seniorroles 29.8% ### +0.2ppt Read more on page 6 Read more on page 5 #### Operating income $12,954m 4% #### Profit before tax $4,724m 6% #### Key Performance Indicators (KPIs) and measures #### Financial KPIs Directors’ Report and Financial Statements 2025 | Standard Chartered 1 ![]() ## Market environment Trends in 2025 • Global GDP growth was 3.4 per cent in 2025, slightly higher than 3.3 per cent in 2024, and better than expected as exporters front-loaded exports to the US and consumers remained resilient amid ongoing easing by central banks. • Asia’s growth was 5.3 per cent in 2025 as its export- oriented economies held up much better than expected thanks to strong front-loading of exports. Growth in India was stronger in 2025 owing to a domestic policy stimulus of tax cuts and interest rate reductions which more than countered higher US tariffs. • Sub-Saharan Africa (SSA) likely saw growth of 4.0per cent in 2025, supported by easing global financial conditions, sustained capital inflows and country-specific reforms. Weaker global integration of SSA economies has provided a buffer against risks stemming from US tariffs. • Among the major markets, the US showed resilience, but growth still slowed from 2.7 per cent in 2024 to 2.0 per cent in 2025 amid government spending cuts, tariff disruptions and prolonged government shutdown. Growth was stronger in 2025 in the Euro area and the UK, largely owing to front-loading of exports to the US ahead of tariffs. Monetary easing will continue to filter through, but external trade pressures have shown signs of weighing ongrowth. In most major markets, there are early signs oflabour market softening. • Many central banks continued to loosen monetary policy over the course of 2025 as inflation showed clearer signs ofreturning to target levels. Outlook for 2026 • We expect global growth to be 3.4 per cent in 2026, unchanged from 2025. For many economies, 2026 is likely to be a year of transition from monetary to fiscal policy, and from export-led to increasingly domestic (particularlyinvestment-led) growth. • On the geopolitical front, markets will be eager to see progress to end ongoing conflicts and will be focused on the US mid-term elections. Risks to the outlook remain high amid persistent trade policy uncertainty, geopolitical flash points, and fears of financial-market corrections – all of which point to potentially higher probabilities of extremeoutcomes. • We expect US to grow by 2.3 per cent in 2026, on the back of strong business investment and spending, supported by corporate tax cuts and the race for AI adoption. We expect euro area growth to be more muted at 1.1per cent given trade pressures – from US tariffs, increasing competition from China and the uneven picture across euro-area economies. • Asian economies are likely to see a slowdown in export growth. However, resilient consumer spending and stronger investment should support growth across most economies. • The US continues to diverge from other major economies – inflationary pressures are building in the US, while they remain largely absent elsewhere. We expect no further cuts from the US Federal Reserve (Fed); as this is less than what the market is currently pricing in, it should mean that global yield curves steepen and should also supportive for the US dollar. #### Macroeconomic factors affecting the global landscape #### Actual and projected growth by market 2026 2025 Asia India 6.6% 7.5% Indonesia 5.2% 5.0% Singapore 3.2% 4.8% Americas US 2.3% 2.0% Africa Nigeria 4.0% 3.8% South Africa 2.0% 1.2% Kenya 5.3% 4.9% Middle East UAE 5.0% 5.0% Europe UK 1.2% 1.4% Euro area 1.1% 1.4% #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 2 ![]() ## Our strategy • Help our clients seamlessly connect with growth opportunities across high-growth corridors, utilising ourunique footprint. • Offer increasingly innovative solutions for complex clientneeds by growing our capabilities in advisory, riskmanagement and financing across capital markets,securities services, trade and payments. • Address evolving client demand and drive client satisfaction with investments in digitisation, productinnovation and AI capabilities. • Enhance our ability to serve sophisticated financial institutions in fast-growing client segments such as Sponsors and Fintech. • Support our clients’ transition journeys across our markets by continuing to build market-leading sustainable financecapabilities. Cross-border Affluent • Continue to differentiate through our international affluent client value proposition, solidifying our position as a leading wealth manager in Asia, Africa and the Middle East. • Strengthen our competitive advantages in serving affluent clients’ needs, with investment in our wealth and digital platforms, client centres, people and brand. • Deliver personalised and trusted advisory and differentiated solutions to clients, leveraging AI and digital tools to grow client engagement and wealth penetration. • Build a robust pipeline of future affluent clients as we continue to reshape our mass retail business. • Connect clients to sustainability capabilities across the bank by embedding sustainable investments into our Wealth Solutions propositions. #### Strategic priorities We are a global bank connecting corporate, institutional and affluent clients to a network that offers unique access to sustainable growth opportunities across Asia, Africa and the Middle East. We specialise in solving complex cross-border challenges for sophisticated clients. Our strategy is designed to deliver our purpose: to drive commerce and prosperity through our unique diversity. This is underpinned byour brand promise, here for good. #### Sustainability #### Cross-border Combining differentiated cross-border capabilities… #### Affluent …with leading wealth management expertise #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 3 ![]() Our business model reflects our strategy of combining differentiated cross-border banking capabilities with leading wealth management expertise for affluent clients, supported by leadership in sustainability. ## Our business model Corporate & Investment Banking(CIB) Supports large corporations, development organisations, governments, and financial institutions with risk management, advisory and financing solutions. Global Markets • Macro Trading • Credit Trading Global Banking • Lending & Financial Solutions • Capital Markets & Advisory Responsible business practices We strive to be a responsible business by operationalising ournet zero targets, managing environmental and social risks, and acting transparently. Transaction Services • Payments and Liquidity • Trade & Working Capital • Securities & Prime Services Wealth Solutions • Investments • Bancassurance • Wealth advice • Portfolio management Retail Products • Deposits • Mortgages • Credit cards • Personal loans Wealth & Retail Banking(WRB) Serves the local and international banking needs of our clients across the wealth continuum with a focus on the affluent segment, while also supporting small and medium-sized enterprises. Ventures Promotes a culture of innovation across the Group, investing in disruptive financial technology and creating alternative financial service business models, as well as growing our digital bank –Trust. 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 inclusion. #### Our key products and services #### Our business segments Sustainability is integral to the Group #### andour client offering across all our #### business segments.Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 4 ![]() #### Summary of financial performance 2025 $million 2024 $million Change % Net Interest income 3,715 4,400 (16) Non NII 1 9,239 8,014 15 Operating income 12,954 12,414 4 Operating expenses (7,955) (7,550) (5) Operating profit before impairment and taxation 4,999 4,864 3 Credit impairment (248) (15) nm Goodwill & Other impairment (29) (410) 93 Profit/(Loss) from associates and joint ventures 2 8 (75) Profit before taxation 4,724 4,447 6 Taxation (1,314) (1,465) 10 Profit for the period 3,410 2,982 14 1 Non NII is the sum of net fees and commission, net trading income and other operating income. Operating income increased 4 per cent. Excluding three notable items in the prior year relating to gains on revaluation of FX positions ($157million), hyperinflationary accounting adjustments ($139million) and loss on subsidiaries disposals ($217million), operating income was up 5 per cent and was driven by growth in non net interest income (Non NII), partly offset by lower net interest income (NII). Net interest income (NII) decreased 16 per cent, driven by margin compression from lower benchmark rates, partly offset by benefits from short-term hedge roll off. Non NII increased 15 per cent driven by sustained momentum in Wealth Solutions, higher volumes in Global Banking, and stronger client flows and episodic income in Global Markets. Operating expenses are up 5 per cent driven by continued investment spend on business growth and transformational initiatives alongside higher variable compensation. Credit impairment is a net charge of $248million and is driven by higher charge-offs and delinquencies in WRB partially offset by net recovery in CIB. Goodwill & Other impairment is lower than prior year by $381million due to non-repeat of prior year write-off of software assets. Taxation of $1,314million for the year represents an effective tax rate of 28 per cent against prior year effective tax rate of 33%, and is due to reduced loss on subsidiaries disposal, favourable adjustments in respects of prior periods and lower level of non-deductible expenses. #### Segmental performance Profit/(loss) before tax by client segment 2025 $million 2024 1 $million Change % Corporate & Investment Banking 4,239 4,056 5 Wealth & Retail Banking 1,185 1,294 (8) Ventures (45) (80) 44 Central & other items (655) (823) 20 Profit before taxation 4,724 4,447 6 1 Segment results have been re-presented in line with the PLC Group’s RNS on Re-Presentation of Financial Information issued on 2 April 2025 to reflect the reallocation of Treasury income and certain costs across segments Corporate & Investment Banking (CIB) • Profit before taxation increased 5 per cent driven by higher income from Global Banking and Global Markets and lower software impairments, partly offset by higher costs • Operating income of $9,230 million was up 4 per cent driven by higher volumes and increased capital market activity in Global Banking, as well as improved flow and episodic income in Global Markets • Operating expense of $5,083 million was up 4 per cent due to higher compensation and strategic investments • Credit impairment is a net write back of $97 million and is due to Stage 3 releases. Other impairment is lower than prior year due to non-recurrence of prior year software impairments ## Financial review #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 5 ![]() Wealth & Retail Banking (WRB) • Profit before taxation decreased 8 percent primarily driven by higher costs from increased investment spend, partly offset byhigher income from Wealth Solutions. • Operating income of $4,046million was down slightly compared to prior year due to margin compression in Deposits, partly offset by higher Wealth Solutions performance • Operating expense of $2,557million was up 5 per cent due to higher investment spend and increase in Affluent frontline staffcost • Credit impairment is a net charge of $299million primarily reflecting higher charge-offs and normalised flows in unsecured portfolio. Other impairment is lower than prior year due to non-recurrence of prior year software impairments Ventures • Loss before taxation of $45 million decreased by $35 million driven by growth in Unsecured Lending volumes and income inTrust Bank. Central & Other items (C&O) • Loss before taxation of $655 million decreased by $168 million driven by benefits from the roll-off of short-term hedges, partly offset by non-repeat of prior year notable items (FX revaluation gains, hyperinflationary accounting adjustment and loss from subsidiary disposals). #### Balance sheet and capital 2025 $million 2024 $million Change % Total assets 593,362 563,534 5 Total liabilities 557,724 529,418 5 Common Equity Tier 1 (%) 13.3% 13.3% 1¹ 1 Change is the basis points (bps) difference between the two periods rather than the percentage change. The Group’s balance sheet is strong, highly liquid and well diversified. Total Assets increased 5 per cent from 31 December 2024 due to growth in financial assets held at fair value through profit or loss (primarily in loans and advances to customers), increase in other assets from higher volumes of precious metals and higher central bank balances. Total Liabilities increased 5 per cent from 31 December 2024 driven by growth in customer accounts, including CIB CASA and WRB CASA and Term Deposits, as well as deposits by banks. Common Equity Tier 1 (CET 1) ratio remains stable at 13.3 per cent as of 31 December 2025. The Group continues to operate through its branches and various subsidiaries, all of which remain well-capitalised in accordance with their applicable risk appetites and applicable regulatory requirements. #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 6 ![]() Standard Chartered Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the PRA and by theFinancial Conduct Authority (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 subsidiary of the PLC Group for the purposes of the Bank of England-led single point of entry preferred resolution strategy for the PLC Group. The Group is a core part of, and critical provider 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) origination hub supporting a significant part of CIB revenues and is key to the global network proposition • The Group is the relationship hub for the majority of key CIB clients, particularly Organisation for Economic Co-operation and Development (OECD) clients • The Group holds the majority of the PLC Group’s corporate and financial institutions deposits, a significant part of the PLC Group’s USD funding base Capabilities • The Group holds key licences 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 majority of Global Market revenues • The Group remains a main access point to high quality USD funding Critical infrastructure • The Group is the key liquidity management centre: holding the majority of the PLC Group’s high-quality liquid 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 including shared service centres and centres of excellence Investors • The Group’s UK domicile underpins a unique investor proposition: emerging markets access from a UK regulatedplatform • A significant number of PLC Group’s equity and debt investors are based in the Group’s footprint Recovery and resolution • Standard Chartered Bank is the largest material subsidiary for the purposes of minimum requirement for own funds and eligible liabilities (MREL) and total loss-absorbing capital (TLAC) • The Group is critical to the delivery of capital and liquidity generating management actions in PLC Group’s recoveryplanning • The Group houses various critical services and critical functions in resolution and resolution management #### The Group’s Credit Ratings The Group remains a highly rated institution (in both absolute and relative terms) with the following long and short-term issuer ratings all with a stable outlook. Moody’s revised the rating outlook on Standard Chartered Bank to stable from positive in November 2025, which was primarily driven by Moody’s methodology change. S&P Moody’s Fitch Long Term A+ A1 A+ Short Term A-1 P-1 F1 Outlook Stable Stable Stable ## Our business #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 7 ![]() #### Strategic report #### An update on our risk management approach Our Risk Management Framework (RMF) sets out the principles and minimum requirements for risk management and governance across the Group. The RMF enables the Group to manage enterprise-wide risks, with the objective of maximising risk-adjusted returns while remaining within our Risk Appetite (RA). The PLC Group 2025 Annual Report outlines our risk management approach through the Enterprise Risk Management Framework (pages 220 to 232). The PLC Group 2025 Annual Report also defines our Risk Culture, Roles and Responsibilities, the Risk Function, approach to Risk Identification and Assessment, Risk Appetite and Stress Testing, and Principal Risks that are also applicable tothe Group Principal Risk Types and Risk Appetite Principal Risk 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 provides an overview of the Group’s current PRTs and their corresponding RA statements. Principal Risk Types Definition Risk Appetite Statement Credit Risk Potential for loss due to failure of a counterparty to meet its agreed obligations to pay the Group. The Group manages its credit exposures following the principle of diversification across products, geographies, client segments and industry sectors. Traded Risk Potential for market or counterparty credit risk losses resulting from activities undertaken by the Group in fair valued financial market instruments. The Group should control its financial markets activities to ensure that market and counterparty credit risk losses do not cause material damage to the Group’s franchise. Treasury Risk Potential for insufficient capital, liquidity, or funding to support our operations, the risk of reductions in earnings or value from movements ininterest rates impacting banking book items and the potential for losses from a shortfall in theGroup’s pension plans. Individual regulated entities within the Group should maintainsufficient capital, liquidity, and funding to support itsoperations, and an interest rate profile ensuring that the reductions in earnings or value from movements in interest rates impacting banking book items do not cause material damage to the Group’s franchise. In addition, the Group should ensure that 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(including legal risks). The Group aims to mitigate and control Operational and Technology risks, to seek to ensure that events, including any related to conduct of business matters, do not causethe Group material harm as a result of business disruption, financial loss or reputational damage. Information and Cyber Security Risk Risk to the Group’s assets, operations, and individuals due to the potential for unauthorised access, use, disclosure, disruption, modification, ordestruction of information assets and/or information systems. The Group aims to mitigate and control ICS risks to ensurethat incidents do not cause the Group material harm, business disruption, financial loss or reputational damage, recognising that whilst incidents are unwanted, they cannot be entirely avoided. Financial CrimeRisk 1 Potential for legal or regulatory penalties, material financial loss or reputational damage resulting from the failure to comply with applicable laws and regulations relating to international sanctions, anti-money laundering and anti-bribery and corruption, and fraud. The Group has no appetite for breaches of laws and regulations related to Financial Crime, recognising thatwhilst incidents 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 integrity 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, recognising that whilst incidents 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 financial performance, operations, or the Group’s name, brand or standing, arising from environmental, social or governance factors, or as a result of the Group’s actual or perceived actions or inactions. The Group aims to measure and manage financial and non-financial risks arising from climate change, reduce emissions in line with our net zero strategy and protect the Group from material reputational damage by upholding responsible conduct and striving to do no significant environmental and social harm. Model Risk Potential loss that may occur because of decisions orthe risk of mis-estimation that could be principally based on the output of models, due to errors in the development, implementation, or use of such models. The Group has no appetite for material adverse implications arising from misuse of models or errors in thedevelopment or implementation of models, whilst accepting some model uncertainty. 1 Fraud forms part of the Financial Crime RA Statement but in line with market practice does not apply a zero-tolerance approach. ## Risk review Directors’ Report and Financial Statements 2025 | Standard Chartered 8 ![]() #### Topical and Emerging Risks (TERs) Topical Risks refer to themes that may have emerged but are still evolving rapidly and unpredictably. Emerging Risks refer to unpredictable and uncontrollable outcomes from certain events which may have the potential to adversely impact our business. As part of our ongoing risk identification process, we have updated the PLC Group’s TERs from those disclosed in the 2025 Half-Year Report. These remain relevant for the Group and are summarised below, including the actions we are taking to mitigate them based on our current knowledge and assumptions. The TER list is not exhaustive and there may be additional risks which could have an adverse effect on the Group. Our mitigation approach for these risks may not eliminate them but demonstrates the Group’s awareness and attempt to mitigate or manage their impact. The full disclosure on TERs, including steps we have taken to mitigate them, can be found in pages 45 to 49 of the PLC Group 2025Annual Report TERs Description How these risks are mitigated Macroeconomic and geopolitical considerations • Expanding array of global tensions andtransition of the international order: Geopolitical fragmentation is driving more fluid alliances, with reduced co-ordination on key global issues. Resurging nationalism, aggressive use of tariffs, hybrid warfare and spillovers from open conflict complicate the global landscape. • Macroeconomic uncertainty including potential price bubbles: Tariffs and trade tensions, as well as uncertain interest rate trajectory create a challenging business environment. Correction of a potential Artificial Intelligence (AI) driven bubble would have implications to the broader economy, with particular scrutiny on the private credit sector. The private credit sector is also considered with concerns over default rates and increasing connectedness with traditional banksand the insurance industry. • Supply chain issues and key material shortages: Supply routes are vulnerable to physical disruptions from conflict or piracy. Growing need for minerals and rare earths can be leveraged to increase influence for refiners. • We conduct portfolio reviews and stress tests at Group, country, business and asset class level, with regular reviews of vulnerable sectors. • We have a structural hedging programme to mitigate the impact of volatile interest rates. • We run daily market risk stress scenarios to assess theimpact of unlikely but plausible market shocks. • We run a suite of management scenarios with differingseverities to assess their impact on key risk appetite metrics. • We have a dedicated country risk team that closely monitors sovereign risk. • We maintain a diversified portfolio across products andgeographies, with specific risk appetite metrics tomonitor concentrations. • Increased scrutiny is applied when onboarding clients insensitive industries and ensuring compliance withsanctions. • We maintain underwriting principles for specialised product and industry segments, detailing transaction level origination standards and sub-segment caps supported by regular portfolio reviews. • We regularly review our supply chains and third-party arrangements to improve operational resilience. • We actively review and test our crisis management andbusiness continuity plans. ESG considerations • Evolving ESG Dynamics: Economic pressures and geopolitical tensions suchas increased tariffs may push companies to consider deprioritising their climate transition. In addition, the cost of managing the climate impacts from more frequent extreme weather events is increasing, with the burden disproportionately borne by developing markets, which in turn lowers their ability to invest in transition infrastructure. • Climate Risk considerations are embedded across relevant Principal Risk Types. We perform client-level Climate Risk assessments and set adequate mitigants or controls where relevant. • PLC Group has delivered on its commitment to be net zero in its own operations (Scope 1 and 2 emissions) bythe end of 2025 and intends to maintain this goingforward. • We embed our values through our Position Statements and a list of prohibited activities. We also maintain ESG and Reputational Risk standards to identify, assess and manage risks when providing services to clients. #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 9 ![]() TERs Description How these risks are mitigated ESG considerations • Management of greenwashing risks is integrated into PLC Group’s ESG and Reputational (ESGR) Risk Type Framework, ESGR policies, Sustainable Finance frameworks, and relevant product and marketingstandards. • Detailed portfolio reviews and stress tests are conducted to assess the resilience of our clients and operations to climate-related physical and transition risks. • Suppliers that are identified as presenting higher risks ofmodern slavery are subject to risk assessments. New business structures, channels and competition • Competitive disruption: In addition to established forms of competition such as FinTechs, traditional finance faces disintermediation from digital assets, particularly stablecoins, as well as the growth of private credit. These risks maybe particularly prevalent in emerging markets. • Rapid adoption of AI: AI’s rapid evolution requires large investment to keep pace with the latest developments, with adoption needing to balance technological advancement with compliance, controls and model risk. Cost pressure and lack of key skills mayhamper a swift transition. Risks offraudand smarter malware are alsoheightened. • Cyber, data and operational resilience: There is an increasing focus on operational resilience from regulators globally. It is key to ensure that the Group’s critical infrastructure is fully mapped, safeguarded and built with resilience in its design. Reliance on third parties introduces additional risk by expanding the Group’s digital footprint. Geopolitical tensions may spillover tothe cyber domain, with other considerations such as data sovereignty complicating a global business model. • We continuously monitor and evaluate emerging technology trends, business models and opportunities. • We have enhanced governance for evolving areas, suchas the PLC Group’s Digital Asset Risk Committee. • We have instituted the AI Safety Council which evaluates and assesses AI solutions prior to use. • We apply a tiered approach to evaluate AI systems, proportionate to the associated risks. • We are partnering with central banks and other stakeholders on digital currency and stablecoin projectsaround the world. • We manage data and information security risks through PLC Group’s Compliance and Information and Cyber Security (ICS) Risk Type Frameworks. PLC Group also maintains a global Group Data Conduct Policy. • The Group continues to invest in its resilience capabilities, with a focus on regulatory compliance, aswell as ensuring the continued operational stability of the Bank. • The Group is focused on uplifting its global data centrefootprint, enhancing technology to reduce obsolescence, assuring its use of Third Parties, and building response and recovery capabilities. • We prioritise security and robust testing in the design ofour products and services, including implementing encryption, phishing resistance and stringent access controls to safeguard user data. • The PLC Group has implemented a ‘defence-in-depth’ ICS control environment strategy to protect, detect and respond to known and emerging ICS threats. • We upskill colleagues on the human aspect of ICS risk, underpinned by our Code of Conduct and Ethics. • We also assign mandatory ICS learning, phishing exercises and role-specific training. • The PLC Group’s Incident Response processes include 24/7 security event monitoring, triage and analysis. • New risks are identified through the New Initiatives RiskAssessment and Third-Party Risk Management Policy and Standards. #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 10 ![]() TERs Description How these risks are mitigated New business structures, channels and competition • We identify security threats to third parties and deliver threat intelligence and briefings to strategic clients to enhance our services and relationships. • We have initiated a post quantum cryptography programme to manage the bank-wide transition topost-quantum encryption standards. • We test the effectiveness of our crisis management andcontinuity strategies through a series of severe butplausible disruption scenarios. • We have implemented pan-bank stress testing for our Important Business Services to ensure vulnerabilities are effectively identified and remediated. • We have improved operational resilience monitoring capabilities to identify potential vulnerabilities quickly and put in place necessary remediations and controls. Regulatory considerations • Regulatory evolution and fragmentation: Regulation continues to diverge, with significant new regimes coming into force at different paces across our footprint. The Group’s presence in a variety of jurisdictions exposes us to increasing regulatory fragmentation, with ongoing uncertainty on topics suchas sanctions, data, AI, and climate. The rise in consultations relating todigital assets, may introduce potentialinconsistent standards acrossjurisdictions. • We actively monitor regulatory developments andrespond to consultations either bilaterally withregulators and external legal advisors or throughwell-established industry bodies. • We track evolving country-specific requirements andactively collaborate with regulators to support important initiatives. • We are leveraging new technology to identify and mapnew regulations. • We remain focused on protecting consumers by proactively identifying and mitigating risks such asscams, phishing and impersonation. Demographic considerations • Skills and the competition for talent: An inability to attract or retain the talent to fill key future skills gaps, both digital and interpersonal, will become a competitive disadvantage. Flexible working may limit the human interaction required todevelop key soft skills. • Demographic and migration trends: This reflects the challenges of managing ageing and shrinking populations in developed markets, whilemaximising the potential of booming younger workforces in developing markets. • Our People Strategy builds a future-ready, multi-generational workforce through structured re-skilling and mobility programs; this enables prompt redeployment as roles evolve, and also mitigates the demographic risks of shrinking and ageing populations. • We have an internal Talent Marketplace which enables colleagues to sign up for projects to access diverse experiences and career opportunities. • We place an emphasis on skills and identifying talent toaccelerate, and how to deploy them in areas with thehighest impact for our clients and the business. • We emphasise frequent two-way feedback through performance and development conversations to embed a culture of continuous learning and development. • We provide support and resources to help balance productivity, collaboration and wellbeing, with more than 60 per cent of PLC Group’s staff working flexibly. • PLC Group’s Human Rights Position Statement outlines our commitment to maintain a safe, supportive, diverse, and inclusive workplace, as well as supporting social and economic development in the communities in which we operate. #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 11 ![]() Listening and responding to stakeholder priorities and concerns is critical to achieving our purpose and delivering on our brand promise, here for good. We communicate progress regularly with external stakeholders through channels such as sc.com, established social media platforms and this report. #### Section 172 Statement This section forms our Section 172 disclosure, describing how the directors considered the matters set out in section 172(1)(a) to(f) of the Companies Act 2006 when performing their duty to promote the success of the Company. It also forms the directors’ statement required under section 414CZA of the Act. Read more about how the Court 1 had regard to each section 172 principle during the year Section 172 Principles Disclosure The likely consequences of any decisions in the long term Principal Court decision – page 12 Our approach to Sustainability – page 14 The interests of the Company’s employees. Stakeholder engagement – page 12 Directors report – page 16 The need to foster business relationships with suppliers, customers and others Stakeholder engagement – page 12 The impact of the Company’s operations on the community andtheenvironment Directors report – page 20 Our approach to Sustainability – page 14 The desirability of the Company maintaining a reputation for high standards ofbusiness conduct Integrity, conduct and ethics – page 19 The need to act fairly as between members of the company Stakeholder engagement – page 12 1 The Court is the decision-making body of Standard Chartered Bank Group. It is collectively responsible for leading the Group within a framework of prudent and effective 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. Detailed information about how the Court engages directly with stakeholders and shareholders can be found in the Director’s report on pages 16 to 21 ## Our Stakeholders An example of the Court’s Principal decision is included in this section. This section also forms our key non-financial disclosures in relation to sections 414CA and 414CB of the Companies Act. Our non-financial information statement can be found at the end of this section. #### Principal Court decisions – market exits The Court approved the divestment of three Wealth and Retail Banking (WRB) businesses in Uganda, Zambia and SriLanka, with the PLC Group concentrating its resources in these markets on serving the cross-border needs of global corporate and financial institution clients through its CIB business. In determining the preferred acquiror for each WRBbusiness, the Court considered the impact of each transaction on key stakeholders including our employees, clients and the broader market environment. This included determining that acquirors were able to provide continuous employment for all in-scope employees and a seamless product offering for all clients. The Court also considered theregulatory and licensing status of each acquiror and theireconomic and operational capacity to integrate the WRB businesses into their own group in a timely manner. Additionally, the Court approved expanding the divestment of the WRB business in Botswana to include the Corporate and Investment Banking business in Botswana, through thesale of Standard Chartered Bank (Botswana) Limited. Inmaking this decision, the Court considered the impact on key stakeholders including our employees, clients, regulators, and the broader market environment. It was determined that the combined scale of the full Botswana franchise would provide prospective acquirors with greater potential for efficient funding, operational leverage and client coverage. This approval remains subject to confirmation of the preferred acquiror and transaction terms. #### Stakeholder engagement Clients Why we engage We engage with our clients to understand how they live andwork across our markets so we can design services and solutions that help them navigate an increasingly complex financial environment. We engage with our clients regularly so we can respond to their evolving priorities, strengthen long-term relationships and continue to enhance the value we create for them. Theseinteractions shape how we innovate, how we tailor oursolutions and how we ensure our products and services meet the specific needs of clients across our global footprint. Their interests • Differentiated product and service offering • Digital products and strong user experience • Sustainable finance • Access to international markets #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 12 ![]() How we engage In 2025, our WRB business deepened client engagement byfocusing on more personalised, insight-led interactions. We enhanced day-to-day engagement by using tools that offer timely, actionable market intelligence, including our AI-powered FX Insights, giving clients real-time information ina simple, intuitive format. This has improved the quality ofconversations between clients and relationship managers and enabled more informed decision-making. We launched our new marketing campaign, Now is your time for Wealth, aimed at the affluent segment. This signals our commitment to executing a more data-driven and personalised approach for a more holistic client engagement, reinforcing our position as an international wealth manager. In CIB, our engagement in 2025 centred on providing advisory-led, relationship-driven support to clients navigating a period of economic uncertainty, supply-chain realignment and evolving regulatory requirements. Rather than focusing on isolated transactions, we developed deeper, continuous dialogue with corporate and institutional clients to help them manage risks, identify growth opportunities and adapt to shifting market dynamics. Our CIB business continued to deliver sophisticated, cross-border solutions for clients. Anexample is our partnership with the Government of the Bahamas, The Nature Conservancy and the Inter-American Development Bank to structure an innovative debt conversion initiative that reduced sovereign debt servicing costs while supporting climate and nature outcomes. For more details on how we engage with clients, refer to further information contained on page 38 of the PLC Group’s 2025 Annual Report and Accounts Employees Why we engage We know that our employees are key to driving our performance and productivity and that the diversity of our people, cultures and network sets us apart. Ensuring we have optimal talent and cultural experience to enable sustained high-performance by colleagues is vital in delivering our strategy. By engaging employees and fostering a positive experience for them, we can better serve our clients and deliver our purpose. Our inclusive and high-performing cultureenables us to unlock innovation, make better decisions, deliver our strategy, live our valued behaviours andembody our brand promise, here for good. Their interests • Day-to-day experience • Health and wellbeing • Reskilling and upskilling initiatives • Career progression • Reward and remuneration • Positive work/life balance How we engage Frequent feedback from employee surveys help us identify and close gaps between colleagues’ expectations 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, or return to work after parental leave. In addition to leveraging inputs from these surveys, there are regular colleague communications through varied channels includingregular People Leader Calls, Townhalls and aGlobal, Functional and Market level the Board and GroupManagement Team also engage with and listen totheviewsof colleagues through interactive sessions. Read more on the Court’s engagement with the workforce on page 18 Investors Why we engage We recognise the importance of maintaining open, transparent and constructive engagement with investors to support sustainable long-term value creation and maintain market confidence. Their interests • Strong and sustainable financial performance • Execution of the Group’s long-term strategy • Robust governance practices • Progress on ESG matters, including advancing our net-zero agenda How we engage Our PLC Group engages with investors through results presentations, one-on-one and group meetings, analyst briefings, conferences, roadshows, investor days, regulatory announcements and the PLC Group’s website. For more details on how we engage with investors, refer tofurther information contained on page 39 of the PLC Group’s 2025 Annual Report and Accounts Society Why we engage We partner with global and local NGOs to help the Group economically empower under-served young people, especially women and those with disabilities. Their interests • Access to decent jobs • Financial access for microbusinesses • Gender equality • Disability inclusion • Skills and businesses that address environmental and social challenges • Provision of mentoring and training support How we engage With the Standard Chartered Foundation, we advanced strategic partnerships in 2025 with NGOs in support of ourgoal to empower underserved young people. New employability programmes to help young people secure decent jobs were implemented. We also continued to engage our partners to adapt programmes to continue supporting as many young people as possible. For more details on how we engage with the society, refer tofurther information contained on page 40-41 of the PLC Group’s 2025 Annual Report and Accounts #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 13 ![]() Suppliers Why we engage We are committed to fostering an inclusive and sustainable supply chain that reflects the diversity of the communities weserve. By engaging with diverse suppliers – small and medium-sized businesses, businesses owned by women, ethnic minorities, persons with disabilities, and social enterprises we help create equitable economic opportunitiesand drive innovation across our value chain. Their interests • Open and transparent tendering process • Simple and consistent onboarding requirements • Accurate and on-time payments • Willingness to adopt supplier-driven innovation • Guidance on implementation of sustainability matters How we engage We aim to identify and work with a more diverse range ofsuppliers. We focus on growing these relationships and increasing spend with existing and new diverse suppliers, while committing to supporting suppliers through coaching, mentoring and outreach programs. For more details on how we engage with suppliers, refer tofurther information contained on page 41 of the PLC Group’s 2025 Annual Report and Accounts Regulators and Governments Why we engage We engage with public authorities to play our part in supporting the effective functioning of the financial systemand the broader economy. Their interests • Strong capital base and liquidity position • Robust standards for financial conduct and financial crime • Competitive economies and markets • Digital innovation and use of AI in financial services • Operational resilience • Sustainable finance and net zero transition • Market integrity and customer protection • International and digital trade • Financial stability How we engage We engage with government, regulators and policy makers at the global, regional and national level as well as trade associations to share insights and support the development of best practices and adoption of consistent approaches across our markets. For more details on how we engage with regulators andgovernments, refer to further information contained onpage 41 of the PLC Group’s 2025 Annual Report andAccounts Our approach to Sustainability Sustainability is a strategic focus area for the Group, as we strive to promote inclusive growth and prosperity across the markets where we operate. The Group leverages the PLC Group’s sustainability approach. The approach is articulated through the PLC Group’s long-term sustainability goals –Sustainability Aspirations – and short-term sustainability targets – the Sustainability Strategic Pillars. The Aspirations and Pillars set out how weintend to deliver across our sustainability agenda. Sustainability Aspirations: our long-term goals The PLC Group Sustainability Aspirations (indicated below) are consolidated into four overarching long-term goals, each supported by key performance indicators. Together, these reflect our commitment to fostering sustainable social and economic development in our markets. • Aspiration 1: Mobilise $300 billion of sustainable Finance • Aspiration 2: Operationalise our interim 2030 Financed emissions targets to meet our 2050 net zero ambition • Aspiration 3: Enhance and deepen the sustainabilityecosystem • Aspiration 4: Drive social impact with our clients and communities Sustainability Strategic Pillars: our short-term targets and immediate priorities The four Sustainability Strategic Pillars represent our near-term strategic focus designed to drive momentum and accelerate progress toward the longer-term Sustainability Aspirations. • Pillar 1: Scale sustainable Finance income • Pillar 2: Further embed sustainability across the organisation • Pillar 3: Deliver on the annual milestones set forth in our net zero roadmap • Pillar 4: Leverage our Innovation Hubs Our non-financial and sustainability reporting requirements are achieved by reference to PLC Group activities where relevant and to the PLC Group report. More information about the Group’s approach to sustainability can be found on pages 75-82 of the PLCGroup’s 2025 Annual Report and Accounts #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 14 ![]() This table sets out where shareholders and stakeholders of the Group can find key non-financial and sustainability matters inthis report. As the Company is a subsidiary undertaking of PLC and included within PLC Group, compliance with the non-financial and sustainability reporting requirements contained in sections 414 CA and 414 CB of the Companies Act 2006 isachieved by reference to PLC Group activities where relevant and to the PLC Group report available at sc.com via sc.com/sustainabilitylibrary Reporting requirement Where to read more in this report about policies, impact (including risks, policy embedding, due diligence and outcomes) Business model Page 4 Risk Review (principal risks) Pages 25 to 70 Environment • Sustainable & Responsible Business • Directors Report Page 14 Pages 16 to 22 Employees Page 13 Human rights Page 18 Social matters Page 13 Anti-corruption and anti-bribery Page 8 #### Authority The strategic report up to page 15 has been issued by order of the Court. Bill Winters Director 24 February 2026 Company Reference Number: ZC18 ## Non-financial and sustainability ## information statement #### Strategic report Directors’ Report and Financial Statements 2025 | Standard Chartered 15 The directors present their report and the audited financial statements of Standard Chartered Bank and its subsidiaries (the ‘Group’) and Standard Chartered Bank (the ‘Company’) for the year ended 31 December 2025. 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 -15) that would otherwise be disclosed in this Directors’ report as required by paragraphs 2,6,10,11,12 of the Regulations. #### Activities The activities of the Group are banking and providing otherfinancial services. The Group comprises a network of branches and outlets in 51 markets. The Financial Review on pages 5 to 6 contains a review of the business during 2025. #### Key stakeholders The long-term success of the Group is dependent on its relationships with its key stakeholders. On pages 12 to 14 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 decision-making processes. #### Results and dividends The results for the year are given in the income statement onpage 84. Dividends of $2,276 million were paid during the year to ordinary shareholders (2024: $2,395 million). #### Share capital Details of the Company’s share capital including the particulars 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. #### Financial instruments Details of financial instruments are given in Note 12 to theaccounts. Details of exposure to credit, traded, liquidity 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 38 to the accounts. #### Research and development During the year, the Group invested $1.82 billion (2024:$1.86 billion) in research and development, of which$797 million (2024: $801 million) was recognised as an expense. The research and development investment primarily related to the planning, analysis, design, development, testing, integration, deployment and initial support of technology systems. Future developments in the business of #### theGroup An indication of likely future developments in the business ofthe Group is provided in the Strategic report. #### Directors and their interests Mr W Winters, CBE Mr D De Giorgi (Resigned 10 February 2026) Mr S Apte Ms J Hunt Ms D Jurgens Mr L Leong Ms A McFadyen Ms M Ramos Ms S Ricke (Resigned 31 December 2025) Mr P Rivett Dr J Viñals (Resigned 8 May 2025) Dr L Yueh, CBE Mr S Apte, MS J Hunt, Ms D Jurgens, Mr L Leong, Mr P Rivett, and Dr L Yueh, CBE are all independent non-executive directors. Dr J Viñals, Ms S Ricke and Mr D De Giorgi resigned as directors of the Company with effect from 8 May 2025, 31 December 2025 and 10 February 2026 respectively. None of the directors have a beneficial or non-beneficial interest in the shares of the Company or in any of its subsidiary undertakings. Details of directors’ pay and benefits are disclosed in Note 37 to the accounts. All of the directors as at 31 December 2025 (except Ms McFadyen and Ms S Ricke) are directors of the Company’s ultimate holding company, Standard Chartered PLC. ## Directors’ report Directors’ Report and Financial Statements 2025 | Standard Chartered 16 #### Directors’ reportDirector training Director induction Upon joining the Court and for any changes in roles and responsibilities, our directors undertake a comprehensive tailored induction programme based on their previous experience and knowledge which is led by the Corporate Secretariat function. In addition to site visits across some of the PLC Group’s key markets and meetings with the Management Team and Court members, the induction programme includes an overview of the following areas: the regulatory environment; corporate governance including directors’ duties; Court and committee governance; strategy; business areas including, CIB, WRB and SC Ventures; the regions; legal; talent, corporate affairs, brand and marketing; audit; transformation, technology and operations; corporate activity; conduct, financial crime and compliance; financeand taxation; capitaland liquidity; internal audit; sustainability; and risk. Deep dives are also arranged for topics relevant to the director’s committee membership. Development plan for the new Group Chair A tailored development plan was devised for Maria Ramos asshe transitioned into the role of Group Chair during 2025. The development plan complemented her deep knowledge of the PLC Group and her strong banking experience, havingpreviously held the roles on the PLC Board of Senior Independent Director and Board Risk Committee Chair, as well as previously being the chair of a listed mining company. While Maria already had extensive knowledge of the PLC Group’s operations, regularly travelled to our key markets across Asia, Africa and the Middle East and was well versed with the significant issues and key risks facing the PLC Group, it was important to take further steps to deepen her knowledge given the new role. Accordingly, the development plan placed emphasis on ensuring she met with management across the PLC Group, a wide range of stakeholders, investors, regulators, and employees, with the aim of raising her profile with key stakeholders across the PLC Group as well as increasing her understanding of the PLC Group’s Asia footprint. The Group Corporate Secretariat provides support to Maria indischarging her responsibilities and has worked with her toensure she received a comprehensive handover and development plan. Prior to her appointment, Maria received significant insight and preparation from the outgoing Group Chairman, José Viñals, through the transition, including a period of shadowing him through discussions and meetings. Ongoing training Ongoing development plans ensure that our Court directors lead with confidence and integrity and promote the Group’s culture, purpose and valued behaviours. Mandatory learning and training are also important elements of directors’ fitness and propriety assessments as required under the UK Senior Managers and Certification Regime. During the year, all directors participated in an education programme which included mandatory learning, briefings, presentations fromguest speakers and papers on a wide range of topics including expected credit loss, information and cyber security, Audit and Corporate Governance socialisation, software security vulnerability management, managing quantum computing ICS risks and directors’ duties, to ensure that they are well informed and that the Court remains highly effective. #### Going concern Having made appropriate enquiries, the Court is satisfied that the Company and the Group as a whole have adequate resources to continue in operation and meet its liabilities asthey fall due for a period of at least 12 months from 24 February 2026 and therefore continues to adopt the goingconcern basis in preparing the financial statements. #### Political donations The Group has a policy in place which prohibits donations being made that would: (i) improperly influence legislation or regulation, (ii) promote political views or ideologies, (iii) fund political causes. In alignment to this, no political donations were made in the year ended 31 December 2025. #### Qualifying Third Party Indemnities The Company has granted indemnities to all of its directors on terms consistent with the applicable statutory provisions. Qualifying third-party indemnity provisions for the purposes of section 234 of the Companies Act 2006 were accordingly in force during the course of the financial year ended 31 December 2025 and remain in force at the date of this report. #### Qualifying Pension Scheme Indemnities Qualifying pension scheme indemnity provisions (as defined by section 235 of the Companies Act 2006) were in force during the course of the financial year ended 31 December 2025 for the benefit of the directors of the UK’s pension fundcorporate trustee (Standard Chartered Trustees (UK) Limited) and remain in force at the date of this report. #### Areas of operation The Company operates through branches and subsidiaries in51 markets across Asia, the Middle East, Africa, Europe and the Americas. #### Related party transactions Details of transactions with directors and officers and other related parties are set out in Note 35 to the financial statements. #### Corporate Governance Statement The Group operates under the subsidiary governance model. As the Group continues to cover the vast majority of PLC Group’s total footprint, the governance arrangements of theCompany and PLC similarly reflect this overlap and is represented by a predominately mirrored board structure between PLC and the Company. As a wholly-owned subsidiary of a listed 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 (2024) (the “Code”) where applicable withrespect to board leadership, responsibilities, composition (including succession and evaluation), audit, risk and internal control, and remuneration to ensure that the Group is well Directors’ Report and Financial Statements 2025 | Standard Chartered 17 ![]() 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 principles areset at PLC Board level and then disseminated through theGroup to be approved by subsidiary boards. The Court is supported by four primary committees: Audit Committee; Risk Committee; Nomination Committee; and USRisk Committee. Each of the primary committees and the Court have implemented clear lines of responsibility and policies to support the Court in its effective decision making. 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 Nomination, Audit and Risk Committees have similar membership as the Board of PLC Group and itsNomination, Audit and Risk Committees, with the appropriate balance, skills, background and experience tomake a valued contribution. The Court Nomination Committee 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 financial, audit, internal control and non-financial crime issues. The Court Risk Committee is responsible for the oversight and review of principal risks. The Committee Chairs report to the Court on the Committees’ key areas of focus following each meeting. For further information on how theNomination Committee, Audit Committee and Risk Committee operate (including in respect of their compliance with the Code), please see pages 155 to 175 of PLC Group’s 2025 Annual Report. The Court, together with the PLC Group, are committed to high standards of engagement with employees, suppliers and other stakeholders. For a description of how the directorsengaged with stakeholders, including as to howsuch engagement has been considered in the Court’sdecision making, please refer to page 12. A copy of the UK Corporate Governance Code can be found at frc.org.uk #### Employee policies 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 opportunities to provide feedback and engage in a dialogue. We strive to listen and act on feedback from colleagues to ensure internal communications are timely, informative, meaningful, and in support of our strategy and transformation. Pulse is our primary internal communications channel that allows colleagues to receive company updates and information that is personalised by role and location, sign up for events, provide feedback, and navigate to other internal platforms. In addition to targeted digital communications, we also organise audio and video calls, virtual and face-to-face townhalls, and other staff engagement and recognition events. We periodically analyse and measure the impact of our communications through a range of feedback tools, including an annual global internal communications survey. Our senior leaders and people leaders play a critical 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 additional support to our senior leaders and people leaders with specific calls and communications packs to help them provide context and guidance to their team members to better understand theirrole in executing and delivering our strategy. Across the organisation, regular team meetings 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 individuals, the team and the business area have contributed to our overall performance and how recognition and reward relate to this. 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, including through interactive engagement sessions. 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 including Instagram and X, which collectively have 13.1 million followers. The diverse range of internal and external communication tools and channels we have put in place aim to ensure that all colleagues receive timely and relevant information to support their effectiveness. Read more on how the Court have engaged with employees and considered employee interests on page 13 of the Strategic Report Employee policies We work hard to ensure our employees’ wellbeing is so that they can thrive at work and in their personal lives. Our PLC Group minimum standards provide employees with a range of flexible working options, in relation to both location and working patterns. Employees are provided with at least 30 days’ leave (through annual leave and public holidays), and new parents are provided a minimum of 20 calendar weeks’ fully paid leave, irrespective of gender, relationship status or how a child comes to permanently join a family. These benefits are in excess of the International Labour Organisation’s (ILO) minimum standards. We seek to maintain a meaningful relationship based on mutual trust and respect with various employee representative bodies (including unions and work councils). In our recognition and interactions, we are heavily influenced by the 1948 United Nations Universal Declaration of Human Rights (UDHR), and several ILO conventions including the Right to Organise and Collective Bargaining Convention, 1949 (No. 98) and the Freedom of Association and Protection of the Right to #### Directors’ report Directors’ Report and Financial Statements 2025 | Standard Chartered 18 Organise Convention, 1948 (No. 87). Working conditions andterms of employment of other employees are based onour PLC Group and country policies, and in accordance with individual 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 mediation, are dealt with through our PLC Group Grievance Standard. This includes concerns related to bullying, harassment, sexual harassment, discrimination and/or victimisation, as well as concerns regarding conditions ofemployment (for example, working 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 reviewing the grievance, conducting fact finding into the grievance and providing awritten outcome to the aggrieved employee. Where employees raise concerns regarding alleged wrongdoing pertaining to another employee or in circumstances where the employee alleges wrongdoing, but does not wish to raise a grievance, such concerns are investigated in accordance with the PLC Group Investigations Standard. If a grievance or investigation is upheld, the next steps mightinclude remedying a process, or initiating a disciplinary review of the conduct of the colleague who is the subject of the concern. The PLC Group Grievance Standard, PLC Group Investigations Standard and accompanying process are reviewed on a periodic basis in consultation with stakeholders across HR, Legal, Compliance, Group Investigations and Shared Investigative Services. Grievance and investigation trends are reviewed on a regular basis and action is taken toaddress any concerning trends. There is a distinct PLC Group Speaking 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 Company. The PLC Group is committed to creating a fair, consistent andtransparent approach to making decisions in a disciplinary context. This commitment is codified in our Fair Accountability Principles, which underpin our PLC Group Disciplinary Standard. Dismissals due to misconduct issues and/or performance (where required by law to follow adisciplinary process) are governed by the PLC Group Disciplinary Standard. Where local law or regulation requires a different process with regards to dismissals and other disciplinary outcomes, we have clearly documented countryvariances in place. Our PLC Group Diversity and Inclusion Standard applies toallemployees, including the Management Team, and non-employed workers as well as any other individual working for the PLC Group, including contractors, consultants and secondees. All colleagues are required to comply with this standard. This is reflected in our PLC Group Code of Conduct and Ethics, which colleagues are required to recommit to on an annual basis. The standard has been developed to ensure a diverse and inclusive workplace, withfair and equal treatment, and the provision of opportunities for employees to participate fully and reach their full potential in a respectful working environment. All individuals are entitled to be treated with dignity and respect, and to be free from harassment, bullying, discrimination and victimisation. This helps to support productive working conditions, decreased staff attrition, positive employee morale and engagement, maintains employee wellbeing, and reduces people-related risk. All colleagues are responsible for fostering an inclusive culturewhere individuality and differing skills, capabilities 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, including conducting themselves inamanner that demonstrates appropriate, non-discriminatory behaviours. We do not accept unlawful discrimination in our recruitment or employment practices on any grounds including but not limited to: sex, race, colour, nationality, ethnicity, national orindigenous origin, disability, age, marital or civil partner status, pregnancy or maternity/paternity, sexual orientation, gender identity, expression or reassignment, HIV or AIDS status, parental status, military and veterans status, flexibilityof working arrangements, religion or belief. We arecommitted to providing equal opportunities and fair treatment in recruitment, appraisals, pay and conditions, training, development, succession planning, promotion, grievance/disciplinary procedures and employment termination practices, that are inclusive and accessible; and that do not directly or indirectly discriminate. Recruitment, employment, training, development and promotion decisions are based on the skills, knowledge and behaviour required toperform the role to the PLC Group’s standards. Implied inall employment terms and our fair pay charter is the commitment to equal pay for equal work. We comply with the duty to consider reasonable workplace adjustments (including during the hiring process) to ensure all individuals feel supported and are able to participate fully and reach their potential. We comply with the duty to consider reasonable workplace adjustments (including during the hiring process) to ensure allindividuals feel supported and are able to participate fullyand reach their potential. We aim to be a disability confident organisation with a focus on removing barriers, improving accessibility and supporting colleagues who acquire a disability through appropriate training and workplace adjustments where possible to enable continued employment and career development. #### Health, Safety and Wellbeing Our health, safety and wellbeing (HSW) vision is to enableahealthy, safe and resilient workforce that supports employee productivity, operational resilience and sustainable performance. Effective management of HSW risks is fundamental to maintaining trust with colleagues, clients, regulators and communities, and forms part of the PLC Group’s enterprise risk management framework. #### Directors’ report Directors’ Report and Financial Statements 2025 | Standard Chartered 19 ![]() Our global HSW programme encompasses both physical andmental health and wellbeing and is embedded across our operations. We comply with all applicable regulatory requirements and internal standards in every market, adopting the more stringent requirement. Status of health and safety management and compliance are reported at least biannually to each country’s Management Team. HSW performance are reported annually to the Group RiskCommittee and Court Risk Committee. We operate a global H&S management system and compliance tracker, complemented by leading indicators such as near-miss reporting, inspections, training completion and audit outcomes to strengthen preventive controls. We align to the International Labour Organization Code ofPractice and UK Health and Safety Executive guidance, ensuring consistent recording, notification and management of occupational accidents and disease that may involve employees, contractors, and visitors. In 2025, there were nowork-related fatalities or occupational ill health cases. 16 major injuries were recorded, with commuting-related incidents remaining the most common. Major injuries follow the UK definition and fractures remain to be the most common type accounting for 56% of recorded. We recorded a 14% increase in reported injuries reflecting improved reporting awareness and earlier intervention. Injury rates remain aligned with, or better than, industry benchmarks. An Operational Excellence programme was implemented across the premises portfolio to address ageing assets, near-miss trends and third-party risk. Lessons learned are systematically reviewed to drive continuous improvement. The programme involves the review of the CRES process universe to incorporate business resilience risk and impacts ofageing and natural disasters to premises, risk profiling and tiering of real estate portfolio, third party inspections, review of third party supplier key performance metrics for integrated facilities management, training and upskilling for timely reporting, escalation, investigation and analysis of incidents. Except in markets where cover is provided through State- mandated healthcare, the Bank provides global access to medical and healthcare services. Counselling and proactive wellbeing support is provided through the Employee Assistance Programme and Unmind platform. Mental health is treated with the same priority as physical health. Over 600 Mental Health First Aiders across 51 markets support early intervention and stigma reduction. In 2025, 795 of our locations achieved the WELL Health- Safety Rating — an increase of more than 640 sites from 2024 — and 21 locations earned the WELL Equity Rating, anaddition of 12 from 2024 while we are on our way to obtaining certifications in major projects embedding accessibility, belonging and equitable experiences deeper into our global workplace strategy. These achievements reflect our continued effort to ensure every colleague feels safe, supported and able to perform at their best, wherever they are. Looking ahead, priorities include strengthening preventive risk management through data driven insights supporting decision making, embedding wellbeing into leadership capability, and reinforcing a culture of continuous improvement. #### 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 diligence and contract management. For information about how the PLC Group engages with suppliers on environmental and social matters, please see our Supplier Charter and Supplier Diversity and Inclusion Standard. We publish a Modern Slavery Statement annually under the UK Modern Slavery Act 2015 and Australian Modern Slavery Act 2018. The 2025 Modern Slavery Statement describes theactions the Group has taken during 2025 to assess and manage the risk of slavery, forced, bonded or compulsory labour, the worst forms of child labour, and human trafficking (modern slavery) in its operations and supply chain. Our Supplier Charter and Supplier Diversity and Inclusion standard can be viewed at sc.com/suppliercharter and sc.com/supplierdiversity #### Clients and Products We aim to design and offer products based on client needs to ensure fair client treatment and to support fair outcomes for clients. The PLC Group has in place a risk framework, comprising policies, standards and controls to support these objectives in alignment with our Conduct Risk Management approach. We ensure products sold are suitable for clients and comply with relevant laws and regulations. We also review our products on a periodic basis and refine them to keep them relevant to the changing needs of clients and to meet regulatory obligations. We have processes and guidelines specific to each of our client industries, to promptly resolve client complaints and understand and respond to client issues. #### Environmental impact of our operations The PLC Group aims to minimise 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. In2025, the PLC Group achieved its net zero target across Scope 1 and 2 emissions, marking a significant milestone The PLC Group’s reporting methodology is based upon the “The Greenhouse Gas Protocol – A Corporate Accounting andReporting Standard (Revised Edition)”. Information on the principles and methodologies used tocalculate the GHG emissions of the PLC Group can be found in our Environmental Reporting Criteria document at sc.com/environmentcriteria #### Directors’ report Directors’ Report and Financial Statements 2025 | Standard Chartered 20 ![]() #### Directors’ report #### Summary of Activities of the Company’s #### Jersey Branch Standard Chartered Bank Jersey Branch’s Affluent banking activities 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 relationship with the Group, which includes monitoring our use of the auditors for non-audit services and the balance of audit and non-audit fees paid. Each director believes that there is no relevant information of which our Group statutory auditor is unaware. Each has taken all reasonable steps necessary as a director to be aware of any relevant audit information and to establish that Ernst & Young LLP (EY) is made aware of anypertinent information. A resolution to re-appoint EY as auditor was passed at the 2025 PLC Annual General Meeting. By order of the Court Bill Winters Director 24 February 2026 Company Reference Number: ZC18 Directors’ Report and Financial Statements 2025 | Standard Chartered 21 ![]() The directors are responsible for preparing the Directors’ Report and the Group and Company Financial Statements inaccordance with applicable law and regulations. Company law requires the directors to prepare Group and Company financial statements for each financial year. Underthat law: • the Group financial statements have been prepared in accordance with UK-adopted International Accounting Standards and International Financial Reporting Standards as adopted by the European Union • the Company financial statements have been properly prepared in accordance with UK-adopted International Accounting Standards 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. Under company law the directors must not approve the financial statements unless they are satisfied that they give 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 directors are required to: • select suitable accounting policies and then apply themconsistently • make judgements and estimates that are reasonable, relevant and reliable • state whether they have been prepared in accordance with UK-adopted International Accounting Standards and International Financial Reporting Standards as adopted by the European Union • assess the Group and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and • use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or tocease operations or have no realistic alternative but todo so. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility 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 irregularities. Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report and Directors’ Report that comply with that law and those regulations. Responsibility statement of the directors inrespect of the Directors’ Report and Financial 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, liabilities, financial position andprofit or loss of the Company and the undertakings included in the consolidation taken as a whole; and • The Strategic Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included inthe consolidation taken as a whole, together with a description of the emerging risks and uncertainties that they face. We consider the Directors’ Report and Financial Statements, taken as a whole, is fair, balanced and understandable and provides the information necessary to assess the Group’s position and performance, business model and strategy. By order of the Court Bill Winters Director 24 February 2026 ## Statement of directors’ responsibilities #### Directors’ report Directors’ Report and Financial Statements 2025 | Standard Chartered 22 ![]() The following parts of the Risk review and Capital review form part of these financial statements – a) Risk review: Disclosures marked as ‘audited’ from the start of Credit Risk section (page 30) to the end of other principal risks inthe same section (page 70); and b) Capital review: Tables marked as ‘audited’ from the start of ‘Capital base’ (page 71) to the end of ‘Total capital’ (page 71). Risk index Page number Risk management approach Risk management framework 24 Principal risks 25 Risk profile Credit Risk 30 Basis of preparation 30 Credit Risk overview 30 Impairment model 30 Summary of Credit Risk performance 30 Maximum exposure to Credit Risk 31 Analysis of financial instrument by stage 33 Credit quality analysis 35 • Credit quality by client segment 35 Movement in gross exposures and credit impairment for loans and advances, debt securities, undrawn commitments and financial guarantees 40 Credit impairment charge 43 Problem credit management and provisioning 43 • Forborne and other modified loans by client segment 43 Credit Risk mitigation 44 • Collateral 44 • Collateral held on loans and advances 44 • Collateral – Corporate and Investment Banking 45 • Collateral – Wealth and Retail Banking 46 • Mortgage loan-to-value ratios by geography 47 • Collateral and other credit enhancements possessed or called upon 47 • Other Credit Risk mitigation 47 Other portfolio analysis 47 • Contractual maturity analysis of loans and advances by client segment 48 • Credit quality by industry 49 • Debt securities and other eligible bills 53 IFRS 9 expected credit loss methodology 54 Traded Risk 60 Counterparty Credit Risk 60 Derivative financial instruments Credit Risk mitigation 60 Market Risk movements 60 Liquidity and Funding risk 63 Liquidity and Funding risk metrics 63 Liquidity analysis of the Group’s balance sheet 64 Interest Rate Risk in the Banking Book 69 Operational and Technology Risk 70 Operational and Technology Risk profile 70 Other principal risks 70 Capital Capital management and governance 71 Capital ratio 71 Capital base 71 Leverage ratio 71 ## Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 23 ![]() #### Risk review and Capital review #### Risk Management Framework The Risk Management Framework (RMF) enables the Group to manage enterprise-wide risks, with the objective of maximising risk-adjusted returns while remaining within ourRisk 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 2025. The PLC Group 2025 Annual Report (pages 220 to 232) outlines our risk management approach through the Enterprise Risk Management Framework. The PLC Group 2025 Annual Report also defines our Risk Culture, Roles and Responsibilities, the Risk Function, approach to Risk Identification and Assessment, Risk Appetite and Stress Testing, and Principal Risks that are also applicable to the Group 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 consideration in the ERMF effectiveness review. The GCRO isresponsible for annually affirming the effectiveness 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 identify improvement opportunities and build plans to address them. Executive and Board risk oversight Overview The corporate governance and committee structure helps theGroup to conduct our business. The Court has ultimate responsibility 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. During the financial year ended on31 December 2025, the Court comprised of the majority 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 specific purpose ofproviding independent decision making attheCourt meetings. Court Risk Committee Court Audit Committee Court Nomination Committee Combined United States Operators and Risk Committee (US Risk Committee) Court and Executive level risk committee governance structure The Committee governance structure below presents the view as of 2025. COURT COURT LEVEL COMMITTEES 1 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. Directors’ Report and Financial Statements 2025 | Standard Chartered 24 Court Risk Committee The CRC is concerned with the oversight and review ofprincipal risks. Court Audit Committee The Court Audit Committee is concerned with the oversight and review of financial, audit, internal control and non- financial crime issues. Court Nomination Committee The Court Nomination Committee is responsible for oversight and review of the composition of, and appointments to the Company’s Court, and the development of a diverse pipeline for succession. 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): and to ensure compliance with the Dodd-Frank Act section 165 Enhanced Prudential Standards. The Committee is responsible for approval and oversight of the US strategy, the Risk Management Framework and associated policies, and the Risk Appetite Statement and metrics for CUSO. The Committee also approves the remuneration and performance objectives of key US Officers. The Group has two management level committees, namely the Standard Chartered Bank Executive Risk Committee (SCB ERC) and Solo & Standard Chartered Bank UK (Branch) Asset and Liability Management Committee (Solo & SCB ALCO). 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 implementation of the RMF, including the delegation of any part of its authorities to appropriate individuals or properly constituted sub-committees. SCB ERC relies on joint meetings with the PLC Group Risk Committee toprovide oversight of the PRTs across clients, businesses, products andfunctions. The Committee requests and receivesrelevant information to fulfil its governance mandates relating to the risks to which the Group is exposed, and alerts Senior or Executive management when risk reports do not meet its requirements. Solo & Standard Chartered Bank UK (Branch) Asset and Liability Management Committee Solo & SCB ALCO is appointed by the SC Bank CFO and chaired by the Group Treasurer. The Committee is responsible for determining the Group’s approach to balance sheet management and ensuring that, in executing the Group’s strategy, the Group operates within the internally approved RA and external requirements relating to capital, loss- absorbing capacity, liquidity, leverage, Interest Rate Risk in the Banking Book (IRRBB), Banking Book Basis Risk and Structural Foreign Exchange 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 information on risk measures, RA metrics and thresholds, risk concentrations, forward-looking assessments, updates on specific risk situations, and actions agreed by these committees to reduce or manage risk. Principal Risk 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, including mitigation andmonitoring thereof, 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. #### Financial Principal Risk Types Credit Risk Mitigation We apply segment-specific PLC Group policies for Corporate Investment Banking (CIB) and Wealth and Retail Banking (WRB), which set the principles that must be followed for the end-to-end credit process covering initiation, assessment, documentation, approval, monitoring, and governance. We also apply the PLC Group standards for the eligibility, enforceability, and effectiveness of mitigation arrangements. Potential losses are mitigated using a range of tools, such as collateral, netting agreements, credit insurance, credit derivatives and guarantees. Risk mitigants are carefully assessed for their market value, legal enforceability, correlation, and counterparty risk of the protection provider. Collateral is valued prior to drawdown and monitored regularly thereafter as required, to reflect current market conditions, the probability of recovery, and the period of time to realise the collateral in the event of liquidation. We also seek to diversify collateral holdings across asset classes and markets. Where guarantees, credit insurance, standby letters ofcreditor credit derivatives are used as Credit Risk mitigation, the creditworthiness of the protection provider isassessed and monitored using the same credit process applied to the obligor. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 25 Monitoring 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 information on key political and economic trends across major portfolios and countries, portfolio delinquency and loan impairment performance. In CIB, clients and portfolios are subject to additional review when they display signs of actual or potential weakness; for example, where there is a decline in the client’s position within their industry, financial deterioration, a breach of covenants, or non-performance of an obligation within the stipulated period. Such accounts are subject to a dedicated early alert process overseen by the Credit Issues Committee in the relevant countries where client account strategies and credit grades are re-evaluated. In addition, remedial actions can be undertaken, such as exposure reduction, security enhancement or exiting the account. Stressed Assets Group (SAG) is the specialist recovery unit for CIB that operates independently from the main business. The Stressed Asset Risk (SAR) is the second line risk unit. SAR is responsible for the independent challenge, monitoring and approving of the credit risk decisions including stage 3 credit impairment provision of the credit-impaired accounts. Regular portfolio reviews across industries are conducted. Senior members from the CIB business and Risk participate in more extensive portfolio reviews (known as the ‘industry portfolio review’) for certain industry groups. In addition to a review of the portfolio information, this 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 Financial Risk Committee. For WRB, exposures and collateral monitoring are performed at the counterparty and/or portfolio level across different client segments to ensure transactions and portfolio exposures remain within RA. Portfolio 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 specialist independent function. In some countries, aspects of collections and recovery activities are outsourced. For discretionary lending portfolios, similar processes to those of CIB are followed. Any material in-country developments that may impact sovereign ratings are monitored closely by Country Risk withinthe ERM function. The Country Risk Early Warning system, a triage-based risk identification system, categorises countries based on a forward-looking view of possible downgrades and the potential incremental risk-weighted assets (RWA) impact. In addition, an independent Credit Risk Review team within the ERM function 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 withinRAandpolicies. Results of the reviews 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, including willingness, ability, and capacity to repay. The primary lending consideration for counterparties is based on their credit quality and operating cashflows while for individual borrowers it is based on personal income or wealth. The risk assessment gives due consideration to the client’s liquidity and leverage position. Where applicable, the assessment includes a detailed analysis of the Credit Risk mitigation arrangements to determine the level of reliance on such arrangements as the secondary source of repayment in the event of a significant deterioration in a client’s credit quality leading to default. Client income, net worth, and the liquidity of assets by class are considered for overall risk assessment for wealth lending. Wealth lending credit limits are subject to the availability ofqualified collateral. We implement a standard alphanumeric Credit Risk grade system to differentiate the credit quality of exposures for CIB clients, whereby credit grades (CG) 1 to 12 are assigned to reflect the probability of default of performing clients (CG 1 being the best performing), and credit grades 13 and 14 are assigned to non-performing or defaulted clients. WRB internal ratings-based portfolios use application andbehavioural credit scores that are calibrated to generate a probability of default. The Risk Decision Framework uses acredit rating system to define the portfolio/new booking segmentation, shape and decision criteria for the unsecured consumer business segment. Advanced Internal Ratings Based (AIRB) models cover themajority of our exposures and are used in assessing risksatacustomer and portfolio level, setting strategy andoptimising our risk-return decisions. The PLC Group Model Risk 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 validation team. Reviews are alsotriggered if the performance of a model deteriorates materially against predetermined thresholds, measured through the ongoing model performance monitoring 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 established 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). #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 26 ![]() Credit Concentration Risk Credit Concentration Risk for CIB is managed through concentration limits covering large exposure limit to a single counterparty or a group of connected counterparties (based on control and economic dependence criteria), or at portfolio level for multiple exposures that are closely correlated. Single name and Portfolio RA metrics are set, where appropriate, by credit grade, industry, products, tenor, collateralisation level, top clients, 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. Credit impairment For CIB, in line with the regulatory guidelines, Stage 3 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 unlikeliness to pay its credit obligations in full as they fall due. These credit-impaired accounts are managed by SAG. In WRB, loans to individuals and small businesses are considered credit-impaired as soon as any payment of interest or principal is 90 days overdue or they meet other objective evidence of impairment, such as bankruptcy, debt restructuring, fraud, or death, with unlikely continuation of contractual payments. Financial assets are written-off, in the amount that is determined to be irrecoverable, when they meet conditions set such that empirical evidence suggests the client is unlikely to meet their contractual obligations, oraloss of principal is reasonably expected. Estimating the amount and timing of future recoveries involves significant judgement and considers the assessment of matters such as future economic conditions and the value of collateral, for which there may not be a readily accessible market. The total amount of the Group’s impairment provision is inherently uncertain, being sensitive to changes ineconomic and credit conditions across the markets in which the Group operates. Read more on sensitivity analysis of ECL under IFRS 9 intheRisk profile section on page 57 Underwriting The underwriting of securities and loans is in scope of the CIBRA. The Underwriting Committee approves individual proposals to underwrite new security issues and loans for our clients in compliance with the RA statement. Additional risk triggers are set based on the type of exposure and credit grade as approved by the GCRO. Traded Risk Mitigation Traded Risk limits are calibrated to ensure that risk exposure is affordable under both normal and stress conditions. The Traded Risk Policy sets the principles that must be followed for the end-to-end traded risk management process including limit setting, risk capture and measurement, limit monitoring and escalation, risk mitigation, and stress testing. Policies are reviewed and approved by the Global Head, Traded Risk Management periodically to ensure their ongoing effectiveness. Market Risk Measurement The Group uses a VaR model to measure the risk of losses arising from future potential adverse movements in market rates, prices, and volatilities. 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. The Group applies two VaR methodologies: • Historical simulation: this involves the revaluation of all existing positions to reflect the effect of historically 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 specific (credit spread) risk factors. The enhanced Volatility Scaling VaR (VSV) model went live in January 2025 where risk factors’ returns are scaled to reflect historical volatility. TheVSV model is more responsive to volatility changes observed in the market. • Monte Carlo simulation: this methodology is used in conjunction with historical simulations when historical data is not directly available. This approach is applied for the idiosyncratic credit spread risk factor or single name equity risk factor. The simulation is performed by calibrating the model to preserve volatility of 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 risks are not captured in the regulatory VaR measure and these risks not in VaR are subject to capital add-ons. Counterparty Credit Risk measurement A Potential Future Exposure (PFE) model is used to measure the credit exposure arising from the positive mark-to-market of traded products. The PFE model provides a quantitative estimate of future potential movements in market rates, prices, and volatilities at a certain confidence level over different time horizons based on the tenor of the transactions. The Group applies two PFE methodologies: simulation-based, used for the bulk of FX, interest rates and commodity products, and add-on-based for credit products and residual non-simulation-based products. Monitoring Traded Risk Management monitors the overall portfolio risk and ensures that it is within specified limits and therefore RA. Limits are typically reviewed at least once a year. All material Traded Risks are monitored daily against approved limits. Traded Risk limits apply at all times unless separate intra-day limits have been set. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 27 ![]() Treasury Risk We apply the PLC Group policies for the management of material 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, financial plans and capital plans (Corporate Plan) are drawn up covering a five-year horizon which are approved by the Court annually. The plan ensures that adequate levels of capital, including loss absorbing capacity, and an efficient mix of the different components of capital, are maintained to support our strategy and business plans. This process considers downside scenarios and the availability of recovery actions to course correct, as appropriate. 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 including capital, leverage and Minimum Requirement for own funds and Eligible Liability (MREL), are assessed within the Corporate Plan to ensure that the strategy can be achieved within risk tolerances. Structural Foreign Exchange (FX) Risk The Group’s structural FX position results from the Company’s non-US dollar investment in the share capital and reserves of subsidiaries 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 (CET1) ratio. Hedges are contracted across PLC Group and Solo to manage their structural FX position in accordance with the RA. As a result net investment hedges to partially cover its exposure to certain non-US dollar currencies, mitigating the FX impact of such positions on its CET1 ratios. Read more on our Structural foreign exchange exposures onpage 61 Liquidity and Funding Risk At Solo and entity level we implement various RA metrics to monitor and manage liquidity and funding risk. This ensures that the Group maintains an adequate and well-diversified liquidity buffer, as well as a stable funding base, to meet its liquidity and funding regulatory requirements. Read more on Liquidity and Funding Risk on page 63 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 limits and management action triggers. This risk arises from differences in the repricing profile, interest rate basis, and optionality of banking book assets, liabilities and off-balance sheet items. IRRBB represents an economic and earnings risk to the Group and its capital adequacy. Read more on IRRBB on page 69 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 liabilities with respect to its occupational pension plans or other long-term benefit obligations. For a funded plan it represents the risk that additional contributions will need to be made because of a future funding shortfall. For unfunded obligations, it represents the risk that the cost of meeting future benefit payments is greater than currently anticipated. Recovery and Resolution Planning In line with PRA requirements, the Group maintains a Recovery Plan and a Solo Recovery Plan (SCB UK and its branches). The Solo Recovery Plan includes a set of recovery indicators, an escalation framework, and a set of management actions capable of being implemented during a stress. The Solo Recovery Plan is also subject to periodic fire-drill testing in line with the Group. Other major entities of SC Bank also maintain their 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 capabilities, arrangements, and resources in place to maintain, test and improve resolution capabilities, and continue to meet the required resolvability outcomes on an ongoing basis. The Resolvability Self-Assessment Report was submitted by the PLC Group to the PRA in October 2023, with an update provided in January 2024. The PLC Group also published its latest resolvability disclosure, as required by the BoE, on 6 August 2024. The next PLC Group Resolvability Self- Assessment Report will be submitted to the BoE/PRA in October 2026. Monitoring 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 activities and those that arise from internal and external events. Internal risk management reports covering the capital, liquidity and IRRBB positions are presented to the Solo & SCB ALCO. The reports contain key information on balance sheet trends, exposures against RA and supporting risk measures which enable members to make informed decisions around the overall management of the balance sheet. In addition, an independent Treasury CRO within ERM reviews the prudence and effectiveness of Treasury Risk management. Pension Risk is managed by the Head of Pensions and Reward Analytics, and monitored by the Treasury CRO onaperiodic basis. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 28 ![]() #### Non-financial Principal Risk Types In the same way as financial risks, non-financial risk types aremanaged in line with the PLC Group’s RTFs which are cascaded to the Group. Our management of ESGR Risk is setout below. Read more on Operational and Technology, Information and Cyber Security, Model, Financial Crime andCompliance PRTs on pages 229 to 232 of the PLC Group 2025 Annual Report Environmental, Social and Governance and Reputational (ESGR) Risk ESGR Risk is defined as the risk of potential or actual adverse impact on the environment and/or society, or to the Group’s financial performance, operations or the Group’s name, brand or standing, arising from environmental, social orgovernance factors, or as a result of the Group’s actual orperceived actions or inactions. ESGR Risk continues to be anarea of growing importance, driving a need for strategic transformation across business activities and risk management. Mitigation The ESGR RTF provides the overall risk management approach for Environmental, Social and Governance and Reputational risks. The ESG Risk policy outlines the Group’s commitment to integrating ESG considerations into its business, operations, and decision-making process. The policy sets out the requirements for identifying, assessing, escalating and managing ESG risks for the Group’s operations, clients/ transactions and third parties. The Reputational Risk policy outlines the requirements foridentifying, assessing, escalating and managing negativeshifts in stakeholder perceptions arising from clienton-boarding and due diligence, transactions, product design and product features, or strategic coverages such as entry into new markets or investments. Whenever potential for stakeholder concerns is identified, issues aresubject to review and decision by both the first and secondlines of defence. The policy also sets out the key considerations for mitigating greenwashing risk that can arise during product and/or deal lifecycle, sustainability reporting and disclosures, and external campaigns related tosustainability themes. Monitoring Exposure to Reputational Risks arising from transactions, clients, products and strategic coverage is monitored throughestablished triggers to prompt the appropriate risk-based considerations and assessment by the first line ofdefence and escalations to the second line of defence. Riskacceptance decisions and thematic trends are also reviewed on a periodic basis. Exposure to ESG Risks is monitored through triggers embedded within the first line of defence processes. The environmental and social risks are considered for clients and transactions via Client Environmental, Social and Governance Risk Assessments (C-ESGRA), Transaction Environmental and Social Risk Assessments (ESRA), Reputational Risk Materiality Assessments (RRMA) and/or Climate Risk Assessments (CRAs). Vendors that identified as high risk which meet the high-risk category-country combinations based on responses provided by the supplier at onboarding are assessed for modern slavery risk. Exposure to Climate Risk is monitored in conjunction with other PRTs. We have embedded qualitative and quantitative climate considerations into the Group’s Credit Underwriting Principles for Oil and Gas, Mining, Shipping, Commercial real estate and Project Finance portfolio. Starting October 2025, we have introduced a Client-level Physical Risk Grading Framework in order to identify and monitor key risk hotspots in the CIB portfolio with regards to clients’ exposure to extreme weather events. This is in addition to the Transition Risk Grading already in place for CIB clients. We have also expanded coverage of Climate and Credit Risk considerations to physical collateral, as they serve as key risk mitigants especially in default events. We use available data or proxy methodologies to assess the portfolios within WRB for transition risks particularly consumer mortgage. We assess physical risk concentrations for our WRB portfolio on a quarterly basis and assess the physical risk vulnerabilities of our sites periodically and when new sites are onboarded. Wehave initiated an evaluation of physical risk vulnerabilities at our primary vendors’ delivery sites this year. We are also monitoring the climate risk-related vulnerabilities and readiness of our top corporate liquidity providers, including the concentration of liquidity exposures on clients with high transition and/or high physical risk. Our Net Zero Climate Risk Working Forum meets every twomonths to discuss account plans and risk management strategies for high climate risk and net zero divergent clients. We are also enhancing the oversight on any new grossly misaligned clients through a mandatory second line review aspart of the deal approval process. 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 (ICAAP). Management information isreviewed at a quarterly frequency and any breaches in RAare reported to the GRC and BRC. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 29 ![]() #### Basis of preparation Unless otherwise stated the balance sheet and income statement information within this section is based on the financial booking location. The presentation of segmental information has been changed in 2025 as set out in Note 1 to the financial statements. Prior period amounts have been re-presented in line with this change. Loans and advances to customers and banks held at amortised cost in this ‘Risk profile’ section include reverse repurchase agreement balances held at amortised cost, per Note 15 “Reverse repurchase and repurchase agreements including other similar secured lending and borrowing”. Credit Risk overview Credit Risk is the potential for loss due to the failure of a counterparty to meet its obligations to pay the Group. Credit exposures arise from both the banking and trading books. Impairment model IFRS 9 mandates an impairment model that requires the recognition of expected credit losses (ECL) on all financial debt instruments held at amortised cost, Fair Value through Other Comprehensive Income (FVOCI), undrawn loan commitments, and financial guarantees. Read more on the accounting policy on page 101 and the IFRS 9 expected credit loss methodology on page 54 #### Summary of Credit Risk Performance Maximum exposure The Group’s on-balance sheet maximum exposure to Credit Risk increased by $19.7 billion to $562.9 billion (31 December 2024: $543.2 billion). Cash and balances at central banks increased by $8.3 billion to $64.9 billion (31 December 2024: $56.7 billion), reflecting higher statutory reserve requirements and increased unrestricted balances driven by funding inflows and high- quality liquid asset deployment. Loans and advances to customers increased by $1.0 billion to $159.3 billion (31 December 2024: $158.2 billion), comprising increases of $0.8 billion in CIB and $6.5 billion across WRB and Ventures, offset by a $6.4 billion decrease in Central and other items. Debt securities (not held at fair value through profit or loss) increased by $7.5 billion to $103.7 billion (31 December 2024: $96.2 billion) due to maturing exposures. Fair value through profit and loss increased by $18.5 billion to $120.8 billion (31 December 2024: $102.3 billion), largely due to an increase in debt securities and loans to customers. Derivative financial instruments decreased by $16.2 billion to $66.5 billion (31 December 2024: $82.7 billion) mainly due to the weakening of the US dollar. Off-balance sheet instruments increased by $43.6 billion to $248.9 billion (31 December 2024: $205.3 billion) due to increases in financial guarantees and other equivalents, and undrawn commitments driven by client demand. Read more on Maximum exposure to Credit Risk onpage31 Loans and Advances The Group continues to focus on high-quality origination, with 93 per cent (31 December 2024: 93 per cent) of the Group’s gross loans and advances to customers remaining in stage 1 at $151.2 billion (31 December 2024: $149.8 billion). Stage 1 gross loans and advances to customers increased by $1.5 billion to $151.2 billion (31 December 2024: $149.8 billion). CIB gross stage 1 balances increased by $1.5 billion in the financing, insurance and non-banking sector. WRB gross stage 1 balances increased by $5.9 billion largely due to higher secured wealth and mortgages balances. This was offset by a $6.2 billion reduction in Central and other items primarily due to the maturity of placements held with the Monetary Authority of Singapore. Stage 2 gross loans and advances to customers decreased by $0.5 billion to $6.8 billion (31 December 2024: $7.3 billion). CIB gross stage 2 balances decreased by $0.6 billion to $5.6 billion (31 December 2024: $6.3 billion), driven by the financing, insurance and non-banking sector. WRB gross stage 2 balances are broadly unchanged at $1.2 billion (31 December 2024: $1.0 billion). Stage 3 gross loans and advances to customers were broadly stable at $4.0 billion (31 December 2024: $4.1 billion) across all segments. Read more on Analysis of financial instrument by stage on page 33; Credit quality by client segment on page 35 Credit impairment charges The Group’s credit impairment was a net charge of $248 million (31 December 2024: $15 million). WRB contributed a net charge of $299 million (31 December 2024: $260 million) driven by increase in charge-offs due to the higher interest rate environment impacting repayments on credit cards and personal loans, and maturity and portfolio growth of digital partnerships in Indonesia. For CIB, the credit impairment release of $97 million was primarily driven by stage 3 releases that was lower by $189 million when compared to 2024. Stage 1 and 2 increased by $55 million due to overlays and portfolio movements. Ventures net impairment charge was $33 million (31 December 2024: $25 million) due to portfolio growth and maturity of Trust Bank Plc. For Central and other items, credit impairment charge was lower at $13 million (31 December 2024: $16 million). Read more on Credit impairment charges on page 43 ## Credit Risk #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 30 ![]() 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 2025, before and after taking into account any collateral held or other Credit Risk mitigation. Read more about Summary of Credit Risk Performance on page 30 Group 2025 2024 Maximum exposure $million Credit risk management Net Exposure $million Maximum exposure $million Credit risk management Net exposure $million Collateral 8 $million Master netting agreements $million Collateral 8 $million Master netting agreements $million On-balance sheet Cash and balances at central banks 64,943 – – 64,943 56,665 – – 56,665 Loans and advances to banks 1 24,771 3,698 – 21,073 22,941 2,889 – 20,052 of which – reverse repurchase agreements and other similar secured lending 3,698 3,698 – – 2,889 2,889 – – Loans and advances to customers 1 159,254 61,700 – 97,554 158,242 54,780 – 103,462 of which – reverse repurchase agreements and other similar secured lending 7,350 7,350 – – 9,121 9,121 – – Investment securities – Debt securities and other eligible bills 2,3 103,665 – – 103,665 96,179 – – 96,179 Fair value through profit or loss 4 120,756 66,326 – 54,430 102,258 65,603 – 36,655 Loans and advances to banks 2,435 – – 2,435 2,033 – – 2,033 Loans and advances to customers 8,945 – – 8,945 3,989 – – 3,989 Reverse repurchase agreements and other similar lending 66,326 66,326 – – 65,603 65,603 – – Investment securities – Debt securities and other eligible bills 2,3 43,050 – – 43,050 30,633 – – 30,633 Derivative financial instruments 5 66,479 12,912 50,816 2,751 82,717 12,984 65,027 4,706 Accrued income 1,697 – – 1,697 1,846 – – 1,846 Assets held for sale 9 909 – – 909 866 – – 866 Other assets 6 20,435 – – 20,435 21,535 – – 21,535 Total balance sheet 562,909 144,636 50,816 367,457 543,249 136,256 65,027 341,966 Off-balance sheet 7 Undrawn Commitments 143,923 2,972 – 140,951 123,931 1,861 – 122,070 Financial Guarantees and other equivalents 104,930 2,754 – 102,176 81,343 1,570 – 79,773 Total off-balance sheet 248,853 5,726 – 243,127 205,274 3,431 – 201,843 Total 811,762 150,362 50,816 610,584 748,523 139,687 65,027 543,809 1 Amounts are net of ECL provisions. An analysis of credit quality is set out in the credit quality analysis section on page 35. Further details of collateral held by client segment and stage are set out in the collateral analysis section on page 44. The Group also has credit mitigation through Credit Default Swaps and Credit Linked Notes as set out on page 47. 2 Excludes equity and other investments of $256 million (31 December 2024: $263million). Further details are set out in Note 12 Financial instruments. 3 The Group has credit insurance over $4.2 billion (31 December 2024: $4.03 billion) of other eligible bills. 4 Excludes equity and other investments of $322 million (31 December 2024: $1,366 million). Further details are set out in Note 12 Financial instruments. 5 The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of the positive and negative mark-to-market values of applicable derivative transactions. 6 Other assets include cash collateral, and acceptances, in addition to unsettled trades and other financial assets. 7 Excludes ECL provisions of $189 million (31 December 2024: $208 million) which are reported under Provisions for liabilities and charges. 8 Adjusted for over-collateralisation, which has been determined with reference to the drawn and undrawn component as this best reflects the effect on the amountarising from expected credit losses. 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 provisions. Further details are set out in Note 20 Assets held for sale and associated liabilities. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 31 ![]() Company 2025 2024 Maximum exposure $million Credit risk management Net Exposure $million Maximum exposure $million Credit risk management Net exposure $million Collateral 7 $million Master netting agreements $million Collateral 7 $million Master netting agreements $million On-balance sheet Cash and balances at central banks 52,348 – – 52,348 45,233 – – 45,233 Loans and advances to banks 1 11,108 855 – 10,253 11,755 1,423 – 10,332 of which – reverse repurchase agreements and other similar secured lending 855 855 – – 1,423 1,423 – – Loans and advances to customers 1 80,091 21,919 – 58,172 77,597 24,378 – 53,219 of which – reverse repurchase agreements and other similar secured lending 6,865 6,865 – – 9,041 9,041 – – Investment securities – Debt securities and other eligible bills 2 79,448 – – 79,448 81,855 – – 81,855 Fair value through profit or loss 3 99,705 60,950 – 38,755 87,122 62,141 – 24,981 Loans and advances to banks 2,337 – – 2,337 1,880 – – 1,880 Loans and advances to customers 6,615 – – 6,615 3,276 – – 3,276 Reverse repurchase agreements and other similar lending 60,950 60,950 – – 62,141 62,141 – – Investment securities – Debt securities and other eligible bills 2 29,803 – – 29,803 19,825 – – 19,825 Derivative financial instruments 4 66,631 12,063 52,411 2,157 82,844 11,788 67,030 4,026 Accrued income 1,127 – – 1,127 1,256 – – 1,256 Assets held for sale 8 227 – – 227 474 – – 474 Other assets 5 14,577 – – 14,577 17,587 – – 17,587 Total balance sheet 405,262 95,787 52,411 257,064 405,723 99,730 67,030 238,963 Off-balance sheet 6 Undrawn Commitments 80,006 1,957 – 78,049 69,293 1,033 – 68,260 Financial Guarantees and other equivalents 10 91,342 2,231 – 89,111 69,038 1,215 – 67,823 Total off-balance sheet 171,348 4,188 – 167,160 138,331 2,248 – 136,083 Total 9 576,610 99,975 52,411 424,224 544,054 101,978 67,030 375,046 1 Amounts are net of ECL provisions. An analysis of credit quality is set out in the credit quality analysis section page 35. Further details of collateral held by client. Segment and stage are set out in the collateral analysis section page 44. The Group also has credit mitigation through Credit Linked Notes as set out on page 47. 2 Excludes equity and other investments of $236 million (31 December 2024: $246 million). Further details are set out in Note 12 Financial instruments. 3 Excludes equity and other investments of $189 million (31 December 2024: $1,227 million). Further details are set out in Note 12 Financial instruments. 4 The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of the positive and negative mark-to-market values of applicable derivative transactions. 5 Other assets include cash collateral, and acceptances, in addition to unsettled trades and other financial assets. 6 Excludes ECL provisions of $153 million (31 December 2024: $148 million) which are reported under Provisions for liabilities and charges. 7 Adjusted for over-collateralisation, which has been determined with reference to the drawn and undrawn component as this best reflects the effect on the amountarising from expected credit losses. Loans and advances to customers collateral now re-presented between on and off -balance sheet as it also includesguarantees. 8 The amount is after ECL provisions. Further details are set out in Note 20 Assets held for sale and associated liabilities. 9 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million (31 December 2024: $10,066 million). The amounts are held within stage 1 and rated as ‘strong’ and is net of an expected credit loss of $3.0 million (31 December 2024: $2.4 million). 10 In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This omission has been identified and corrected in the current period. These guarantees provide protection against negligence and non-payment of damages associated with such negligence in the provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion (31 December 2024: $88.8 billion). Based on current information, the Company does not expect any material losses to arise from these guarantees. These amounts are not included in the table above. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 32 ![]() Analysis of financial instrument by stage (audited) The table below presents the gross and credit impairment balances by stage for amortised cost and FVOCI financial instruments as at 31 December 2025. Read more about Summary of Credit Risk Performance on page 30 Group 2025 Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Cash and balances atcentral banks 63,717 – 63,717 463 (1) 462 773 (9) 764 64,953 (10) 64,943 Loans and advances to banks (amortised cost) 24,521 (3) 24,518 216 – 216 41 (4) 37 24,778 (7) 24,771 Loans and advances to customers (amortised cost) 151,235 (292) 150,943 6,793 (190) 6,603 4,027 (2,319) 1,708 162,055 (2,801) 159,254 Debt securities and other eligible bills 5 102,189 (43) 1,198 (5) 296 (5) 103,683 (53) Amortised cost 33,660 (16) 33,644 243 (2) 241 26 – 26 33,929 (18) 33,911 FVOCI 2 68,529 (27) 955 (3) 270 (5) 69,754 (35) – Accrued income (amortisedcost) 4 1,697 – 1,697 – – – – – – 1,697 – 1,697 Assets held for sale 920 (22) 898 8 – 8 8 (5) 3 936 (27) 909 Other assets 4 20,435 – 20,435 – – – 3 (3) – 20,438 (3) 20,435 Undrawn commitments 3 140,508 (30) 3,411 (24) 4 (2) 143,923 (56) Financial guarantees, trade credits and irrevocable letter of credits 3 103,099 (21) 1,240 (14) 591 (98) 104,930 (133) Total 608,321 (411) 13,329 (234) 5,743 (2,445) 627,393 (3,090) 2024 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 securities and other eligible bills 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 4 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) Financial 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 provision in respect of debt securities measured at FVOCI is held within the OCI reserve. 3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a liability and therefore there is no “net carrying amount”. ECL allowances on off-balance sheet instruments are held as liability provisions to the extent that the drawn and undrawn components of loan exposures can be separately identified. Otherwise they will be reported against the drawn component. 4 Stage 1 ECL is not material. 5 Stage 3 gross includes $278 million (2024: $59 million) originated credit-impaired debt securities with impairment of $5 million (2024: $Nil). #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 33 ![]() Company 2025 Stage 1 Stage 2 Stage 3 Total Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Gross balance 1 $million Total credit impairment $million Net carrying value $million Cash and balances atcentral banks 52,226 – 52,226 122 – 122 – – – 52,348 – 52,348 Loans and advances to banks (amortised cost) 10,965 (2) 10,963 145 – 145 1 (1) – 11,111 (3) 11,108 Loans and advances to customers (amortised cost) 75,255 (124) 75,131 3,817 (112) 3,705 2,697 (1,442) 1,255 81,769 (1,678) 80,091 Debt securities and other eligible bills 79,073 (34) 390 (2) – – 79,463 (36) Amortised cost 31,665 (14) 31,651 97 (1) 96 – – – 31,762 (15) 31,747 FVOCI 2 47,408 (20) 293 (1) – – 47,701 (21) – Accrued income (amortisedcost) 4 1,127 1,127 – – 1,127 – 1,127 Assets held for sale 239 (12) 227 – – – – – – 239 (12) 227 Other assets 4 14,577 – 14,577 – – – – – – 14,577 – 14,577 Undrawn commitments 3 77,412 (18) 2,592 (16) 2 (1) 80,006 (35) Financial guarantees, trade credits and irrevocable letter of credits 3 90,280 (17) 541 (12) 521 (89) 91,342 (118) Total 5 401,154 (207) 7,607 (142) 3,221 (1,533) 411,982 (1,882) 2024 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 securities and other eligible bills 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 4 17,587 – 17,587 – – – – – – 17,587 – 17,587 Undrawn commitments 3 66,520 (15) 2,770 (17) 3 – 69,293 (32) Financial guarantees, trade credits and irrevocable letter of credits 3,6 67,538 (10) 1,059 (4) 441 (102) 69,038 (116) Total 5 364,333 (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 provision in respect of debt securities measured at FVOCI is held within the OCI reserve. 3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a liability and therefore there is no “net carrying amount”. ECL allowances on off-balance sheet instruments are held as liability provisions to the extent that the drawn and undrawn components of loan exposures can be separately identified. Otherwise they will be reported against the drawn component. 4 Stage 1 ECL is not material. 5 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million (31 December 2024: $10,066 million). The amounts are held within stage 1 and rated as ‘strong’ and is net of an expected credit loss of $3.0 million (31 December 2024: $2.4 million). 6 In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This omission has been identified and corrected in the current period. These guarantees provide protection against negligence and non-payment of damages associated with such negligence in the provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion (31 December 2024: $88.8 billion). Based on current information, the Company does not expect any material losses to arise from these guarantees. These amounts are not included in the table above. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 34 ![]() 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 monitoring of risk. All loans are assigned a CG, which is reviewed periodically and amended in light of changes in the borrower’s circumstances or behaviour. CGs 1 to 12 are assigned to stage 1 and stage 2 (performing) clients or accounts, while CGs 13 and 14 are assigned to stage 3 (credit-impaired) clients. 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. Credit risk management Private Banking 1 Wealth & Retail Banking 4 Maximum exposure $million Collateral 8 $million Master netting agreements $million Net exposure $million Net exposure $million Strong 1A to 5B AAA/AA+ to BBB-/BB+ 2 0 to 0.425 Class I and Class IV Current loans (no past dues nor impaired) Satisfactory 6A to 11C BB to CCC+ 3 0.426 to 15.75 Class II and Class III Loans past due till 29 days Higher risk Grade 12 CCC+/C 15.751 to 99.999 Stressed Assets Group (SAG) Managed Past due loans 30 days and over till 90 days 1 For Private Banking, classes of risk represent the type of collateral held. Class I represents facilities with liquid collateral, such as cash and marketable securities. Class II represents unsecured/partially secured facilities and those with illiquid collateral, such as equity in private enterprises. Class III represents facilities with residential or Commercial real estate collateral. Class IV covers margin trading facilities. 2 Banks’ rating: AAA/AA+ to BB+/BB. Sovereigns’ rating: AAA to BB+. 3 Banks’ rating: BB to “CCC+ to C”. Sovereigns’ rating: BB+/BB to B-/CCC+. 4 Wealth & Retail Banking excludes Private Banking. Medium enterprise clients within Business Banking are managed using the same internal credit grades as CIB. The table below sets out the gross loans and advances held at amortised cost, ECL provisions and ECL coverage by business segment and stage. ECL coverage represents the ECL reported for each segment and stage as a proportion of the gross loan balance for each segment and stage. Read more about Summary of Credit Risk Performance on page 30 #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 35 ![]() Loans and advances by client segment (audited) Group Amortised cost 2025 Banks $million Customers Undrawn commitments $million Financial Guarantees $million Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Customer Total $million Stage 1 24,521 84,810 51,641 902 13,882 151,235 140,508 103,099 • Strong 16,991 58,892 47,206 896 13,126 120,120 126,631 60,779 • Satisfactory 7,530 25,918 4,435 6 756 31,115 13,877 42,320 Stage 2 216 5,609 1,179 5 – 6,793 3,411 1,240 • Strong 41 1,459 848 – – 2,307 1,078 299 • Satisfactory 172 3,488 68 – – 3,556 2,165 873 • Higher risk 3 662 263 5 – 930 168 68 Of which (stage 2): • Less than 30 days past due – 86 68 – – 154 – – • More than 30 days past due 3 69 263 5 – 337 – – Stage 3, credit-impaired financial assets 41 2,842 1,170 13 2 4,027 4 591 Gross balance¹ 24,778 93,261 53,990 920 13,884 162,055 143,923 104,930 Stage 1 (3) (72) (186) (23) (11) (292) (30) (21) • Strong (1) (30) (158) (21) (11) (220) (14) (9) • Satisfactory (2) (42) (28) (2) – (72) (16) (12) Stage 2 – (137) (51) (2) – (190) (24) (14) • Strong – (3) (34) – – (37) (1) – • Satisfactory – (123) (4) – – (127) (15) (9) • Higher risk – (11) (13) (2) – (26) (8) (5) Of which (stage 2): • Less than 30 days past due – (9) (4) – – (13) – – • More than 30 days past due – – (13) (2) – (15) – – Stage 3, credit-impaired financial assets (4) (1,653) (658) (6) (2) (2,319) (2) (98) Total credit impairment (7) (1,862) (895) (31) (13) (2,801) (56) (133) Net carrying value 24,771 91,399 53,095 889 13,871 159,254 Stage 1 0.0% 0.1% 0.4% 2.5% 0.1% 0.2% 0.0% 0.0% • Strong 0.0% 0.1% 0.3% 2.3% 0.1% 0.2% 0.0% 0.0% • Satisfactory 0.0% 0.2% 0.6% 33.3% 0.0% 0.2% 0.1% 0.0% Stage 2 0.0% 2.4% 4.3% 40.0% 0.0% 2.8% 0.7% 1.1% • Strong 0.0% 0.2% 4.0% 0.0% 0.0% 1.6% 0.1% 0.0% • Satisfactory 0.0% 3.5% 5.9% 0.0% 0.0% 3.6% 0.7% 1.0% • Higher risk 0.0% 1.7% 4.9% 40.0% 0.0% 2.8% 4.8% 7.4% Of which (stage 2): • Less than 30 days past due 0.0% 10.5% 5.9% 0.0% 0.0% 8.4% 0.0% 0.0% • More than 30 days past due 0.0% 0.0% 4.9% 40.0% 0.0% 4.5% 0.0% 0.0% Stage 3, credit-impaired financial assets (S3) 9.8% 58.2% 56.2% 46.2% 100.0% 57.6% 50.0% 16.6% • Stage 3 Collateral – 90 437 – – 527 – 56 Fair value through profit or loss Performing 31,769 45,831 – – – 45,831 – – • Strong 23,502 26,951 – – – 26,951 – – • Satisfactory 8,267 18,880 – – – 18,880 – – • Higher risk – – – – – – – – Impaired (CG13-14) 92 14 – – – 14 – – Gross balance (FVTPL) 2 31,861 45,845 – – – 45,845 – – Net carrying value (incl FVTPL) 56,632 137,244 53,095 889 13,871 205,099 – – 1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $7,350 million under Customers and of $3,698 million under Banks, held at amortised cost. 2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $36,900 million under Customers and of $29,426 million under Banks, held at fair value through profit or loss. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 36 ![]() Amortised cost 2024 Banks $million Customers Undrawn commitments $million Financial Guarantees $million Corporate & Investment Banking $million Wealth & Retail Banking $million Ventures $million Central & other items $million Customer Total $million Stage 1 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-impaired 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-impaired financial assets (2) (1,830) (616) (6) – (2,452) (1) (129) Total credit impairment (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-impaired 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 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 – – Impaired (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 similar secured lending of $9,121 million under Customers and of $2,889 million under Banks, held at amortised cost. 2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $37,911 million under Customers and of $27,692 million under Banks, held at fair value through profit and loss. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 37 ![]() Loans and advances by client segment (audited) Company Amortised cost 2025 Banks $million Customers Undrawn commitments $million Financial Guarantees 4 $million Corporate & Investment Banking $million Wealth & Retail Banking $million Central & other items $million Customer Total $million Stage 1 10,965 59,119 11,614 4,522 75,255 77,412 90,280 • Strong 7,577 42,374 9,417 3,865 55,656 66,991 50,505 • Satisfactory 3,388 16,745 2,197 657 19,599 10,421 39,775 Stage 2 145 3,481 336 – 3,817 2,592 541 • Strong 18 720 222 – 942 905 174 • Satisfactory 127 2,258 40 – 2,298 1,597 319 • Higher risk – 503 74 – 577 90 48 Of which (stage 2): • Less than 30 days past due – 79 40 – 119 – – • More than 30 days past due – 55 74 – 129 – – Stage 3, credit-impaired financial assets 1 2,040 657 – 2,697 2 521 Gross balance¹ 11,111 64,640 12,607 4,522 81,769 80,006 91,342 Stage 1 (2) (40) (78) (6) (124) (18) (17) • Strong (1) (14) (73) (6) (93) (5) (7) • Satisfactory (1) (26) (5) – (31) (13) (10) Stage 2 – (88) (24) – (112) (16) (12) • Strong – (1) (16) – (17) – – • Satisfactory – (87) (2) – (89) (11) (7) • Higher risk – – (6) – (6) (5) (5) Of which (stage 2): • Less than 30 days past due – (3) (2) – (5) – – • More than 30 days past due – – (6) – (6) – – Stage 3, credit-impaired financial assets (1) (1,034) (408) – (1,442) (1) (89) Total credit impairment (3) (1,162) (510) (6) (1,678) (35) (118) Net carrying value 11,108 63,478 12,097 4,516 80,091 Stage 1 0.0% 0.1% 0.7% 0.1% 0.2% 0.0% 0.0% • Strong 0.0% 0.0% 0.8% 0.2% 0.2% 0.0% 0.0% • Satisfactory 0.0% 0.2% 0.2% 0.0% 0.2% 0.1% 0.0% Stage 2 0.0% 2.5% 7.1% 0.0% 2.9% 0.6% 2.2% • Strong 0.0% 0.1% 7.2% 0.0% 1.8% 0.0% 0.0% • Satisfactory 0.0% 3.9% 5.0% 0.0% 3.9% 0.7% 2.2% • Higher risk 0.0% 0.0% 8.1% 0.0% 1.0% 5.6% 10.4% Of which (stage 2): • Less than 30 days past due 0.0% 3.8% 5.0% 0.0% 4.2% 0.0% 0.0% • More than 30 days past due 0.0% 0.0% 8.1% 0.0% 4.7% 0.0% 0.0% Stage 3, credit-impaired financial assets (S3) 100.0% 50.7% 62.1% 0.0% 53.5% 50.0% 17.1% • Stage 3 Collateral – 76 249 – 325 – 48 Fair value through profit or loss Performing 28,358 41,543 – – 41,543 – – • Strong 20,718 23,677 – – 23,677 – – • Satisfactory 7,640 17,866 – – 17,866 – – • Higher risk – – – – – – – Impaired (CG13-14) – 1 – – 1 – – Gross balance (FVTPL) 2 28,358 41,544 – – 41,544 – – Net carrying value (incl FVTPL) 3 39,466 105,022 12,097 4,516 121,635 – – 1 Loans and advances include reverse repurchase agreements and other similar secured lending for $6,865 million under Customers and for $855 million under Banks, held at amortised cost. 2 Loans and advances include reverse repurchase agreements and other similar secured lending for $34,929 million under Customers and for $26,021 million under Banks, held at fair value through profit and loss. 3 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million. The amounts are held within stage 1 and rated as ‘strong’ at 31 December 2025 and is net of an expected credit loss of $3 million. 4 Excludes certain guarantees provided to custody clients of subsidiaries. These guarantees provide protection against negligence and non-payment of damages associated with such negligence in the provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion Based on current information, the Company does not expect any material losses are expected to arise from these guarantees. These amounts are not included in the table above. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 38 ![]() Amortised cost 2024 Banks $million Customers Undrawn commitments $million Financial Guarantees 4 $million Corporate & Investment Banking $million Wealth & Retail Banking $million Central & other items $million Customer Total $million 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-impaired 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-impaired financial assets – (1,175) (405) – (1,580) – (102) Total credit impairment (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-impaired financial assets (S3) 0.0% 58.6% 59.6% 0.0% 58.8% 0.0% 23.1% • Stage 3 Collateral – 123 244 – 367 – 20 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 – – Impaired (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 similar secured lending of $9,041 million under Customers and of $1,423 million under Banks, held at amortised cost. 2 Loans and advances include reverse repurchase agreements and other similar secured lending of $37,175 million under Customers and of $24,966 million under Banks, held at fair value through profit and loss. 3 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $10,066 million. The amounts are held within stage 1 and rated as ‘strong’ at 31 December 2024 and is net of an expected credit loss of $2.4 million. 4 In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This omission has been identified and corrected in current period. These guarantees provide protection against negligence and non-payment of damages associated with such negligence in the provision of custody services. The maximum exposure to loss under these guarantees was $88.8 billion. Based on current information, the Company does not expect any material losses to arise from these guarantees. These amounts are not included in the table above. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 39 Movement in gross exposures and credit impairment for loans and advances, debt securities, undrawn commitments and financial guarantees (audited) The tables overleaf set out the movement in gross exposures and credit impairment by stage in respect of amortised cost loans to banks and customers, undrawn commitments, financial guarantees and debt securities classified at amortised cost and FVOCI. The tables are presented for the Group and separately for CIB and WRB (which also includes a separate presentation for secured and unsecured exposures). Methodology The movement lines within the tables are an aggregation of monthly movements over the year and will therefore reflect the accumulation of multiple trades during the year. The credit impairment charge in the income statement comprises the amounts within the boxes in the table below less recoveries of amounts previously written off. Discount unwind is reported in net interest income and related to stage 3 financial instruments only. The approach for determining the key line items in the tables is set out below. • Transfers – transfers between stages are deemed tooccurat the beginning of a month based on prior month closing balances. • Net remeasurement from stage changes – the remeasurement of credit impairment provisions arising from a change in stage is reported within the stage that the assets are transferred to. For example, assets transferred into stage 2 are remeasured from a 12 month to a lifetime expected credit loss, with the effect of remeasurement reported in stage 2. For stage 3, this represents the initial remeasurement from specific provisions recognised on individual assets transferred into stage 3 in the year. • Net changes in exposures – new business written less repayments in the year. Within stage 1, new business written will attract up to 12 months of expected credit loss charges. Repayments of non-amortising loans (primarily within CIB) will have low amounts of expected credit loss provisions attributed to them, due to the release of provisions over the term to maturity. In stages 2 and 3, the net change in exposures reflects repayments although stage 2 may include new facilities where clients are on non-purely precautionary early alert, or are CG 12. • 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 provisions over the term to maturity. 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 additional specific provisions recognised on exposures held within stage 3. • Interest due but not paid – change in contractual amountof interest due in stage 3 financial instruments butnot paid, being the net of accruals, repayments andwrite-offs, together with the corresponding change incredit impairment. Changes to ECL models, which 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 $55.2 billion to $521.6 billion (31 December 2024: $466.4 billion). CIB exposure increased due to higher exposures in financial guarantees in the financing, insurance and non-banking sector. WRB exposures increased, driven by higher demand for mortgage and secured wealth products in Singapore. Total stage 1 provisions increased by $72 million to $389 million (31 December 2024: $317 million). CIB provisions increased due to higher management overlays and portfolio movements. WRB provisions increased due to increased level of provisions on credit cards and personal loans and unsecured lending. Stage 2 gross exposures decreased by $1.4 billion to $12.9 billion (31 December 2024: $14.3 billion), mainly driven by the financing, insurance and non-banking sector. Stage 2 provisions decreased by $4 million to $233 million (31 December 2024: $237 million) as a result of a strategic pivot to affluent clients and improvements from credit remediation actions in WRB. Stage 3 gross exposures increased by $0.1 billion to $5.0 billion (31 December 2024: $4.9 billion), driven by the increase in personal loans and other unsecured lending in WRB. There was an increase of $0.2 billion in debt securities classified as POCI to $0.3 billion (31 December 2024: $0.1 billion) due to higher holdings of treasury bills in one defaulted sovereign. Stage 3 provisions decreased by $0.2 billion to $2.4 billion (31 December 2024: $2.6 billion) due to repayments and write-offs in CIB. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 40 ![]() All segments – Group (audited) Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 4 Total Gross balance 5 $million Total credit impairment $million Net $million Gross balance 5 $million Total credit impairment $million Net $million Gross balance 5 $million Total credit impairment $million Net $million Gross balance 5 $million Total credit impairment $million Net $million 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 impairment (charge)/release (67) (135) 184 (18) As at 1 January 2025 466,361 (317) 466,044 14,307 (237) 14,070 4,891 (2,586) 2,305 485,559 (3,140) 482,419 Transfers to stage 1 11,669 (274) 11,395 (11,667) 274 (11,393) (2) – (2) – – – Transfers to stage 2 (26,950) 67 (26,883) 27,307 (86) 27,221 (357) 19 (338) – – – Transfers to stage 3 (130) – (130) (1,504) 124 (1,380) 1,634 (124) 1,510 – – – Net change in exposures 57,306 (169) 57,137 (13,553) (21) (13,574) (1,002) 444 (558) 42,751 254 43,005 Net remeasurement from stage changes – 39 39 – (66) (66) – (106) (106) – (133) (133) Changes in models – – – – – – – – – – – – Changes in risk parameters – 112 112 – (84) (84) – (604) (604) – (576) (576) Write-offs – – – – – – (497) 497 – (497) 497 – Interest due but unpaid – – – – – – (128) 128 – (128) 128 – Discount unwind – – – – – – – 81 81 – 81 81 Exchange translation differences and other movements¹ 13,296 153 13,449 (2,032) (137) (2,169) 420 (177) 243 11,684 (161) 11,523 As at 31 December 2025² 521,552 (389) 521,163 12,858 (233) 12,625 4,959 (2,428) 2,531 539,369 (3,050) 536,319 Income statement ECL (charge)/release 3 (18) (171) (266) (455) Recoveries of amounts previously written off – – 211 211 Total credit impairment (charge)/release (18) (171) (55) (244) 1 Includes fair value adjustments and amortisation on debt securities. 2 Excludes Cash and balances at central banks, Accrued income, Assets held for sale and Other assets gross balance of $88,024 million (31 December 2024: $80,975 million) and total credit impairment of $40 million (31 December 2024: $63 million). 3 Does not include charge relating to Other assets of $4 million (31 December 2024: release of $3 million). 4 Stage 3 gross includes $278 million (31 December 2024: $59 million) and ECL $5 million (31 December 2024: $Nil) originated credit-impaired debt securities 5 The gross balance includes the notional amount of off balance sheet instruments. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 41 ![]() All segments – Company (audited) Amortised cost and FVOCI Stage 1 Stage 2 Stage 3 Total Gross balance 4 $million Total credit impairment $million Net $million Gross balance 4 $million Total credit impairment $million Net $million Gross balance 4 $million Total credit impairment $million Net $million Gross balance 4 $million Total credit impairment $million Net $million 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 impairment (charge)/release (26) 6 135 115 As at 1 January 2025 299,918 (157) 299,761 8,292 (123) 8,169 3,132 (1,682) 1,450 311,342 (1,962) 309,380 Transfers to stage 1 7,296 (136) 7,160 (7,294) 136 (7,158) (2) – (2) – – – Transfers to stage 2 (17,350) 22 (17,328) 17,634 (35) 17,599 (284) 13 (271) – – – Transfers to stage 3 (106) – (106) (974) 62 (912) 1,080 (62) 1,018 – – – Net change in exposures 38,911 (61) 38,850 (8,551) (39) (8,590) (754) 273 (481) 29,606 173 29,779 Net remeasurement from stage changes – 2 2 – (24) (24) – (79) (79) – (101) (101) Changes in risk parameters – 41 41 – (32) (32) – (261) (261) – (252) (252) Write-offs – – – – – – (207) 207 – (207) 207 – Interest due but unpaid – – – – – – 3 (3) – 3 (3) – Discount unwind – – – – – – – 57 57 – 57 57 Exchange translation differences and other movements¹ 4,316 94 4,410 (1,622) (87) (1,709) 253 4 257 2,947 11 2,958 As at 31 December 2025² 332,985 (195) 332,790 7,485 (142) 7,343 3,221 (1,533) 1,688 343,691 (1,870) 341,821 Income statement ECL (charge)/release 3 (18) (95) (67) (180) Recoveries of amounts previously written off – – 92 92 Total credit impairment (charge)/release (18) (95) 25 (88) 1 Includes fair value adjustments and amortisation on debt securities. 2 Excludes Cash and balances at central banks, Accrued income, Assets held for Sale and Other assets gross balance of $68,291 million (31 December 2024: $64,555 Million) and total credit impairment of $12 million (31 December 2024: $5 million). Also excluded Amounts due from subsidiary undertakings and other related parties of $11,538 million (31 December 2024: $10,066 million). The amounts are held within stage 1 and is net of an expected credit loss of $3.0 million (31 December 2024: $2.4 million). In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This omission has been identified and corrected in the current period. These guarantees provide protection against negligence and non payment of damages associated with such negligence in the provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion (31 December 2024: $88.8 billion). Based on current information, the Company does not expect any material losses to arise from these guarantees. These amounts are not included in the table above. 3 Does not include charge relating to Other assets of $Nil (31 December 2024: $2 million). 4 The gross balance includes the notional amount of off balance sheet instruments. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 42 ![]() Credit impairment charge (audited) The table below analyses credit impairment charges or releases of the ongoing business portfolio and restructuring business portfolio for the year ended 31 December 2025. Read more on Summary of Credit Risk Performance on page 30 2025 2024 1 Stage 1 & 2 $million Stage 3 $million Total $million Stage 1 & 2 $million Stage 3 $million Total $million Ongoing business portfolio Corporate & Investment Banking 73 (170) (97) 18 (304) (286) Wealth & Retail Banking 97 202 299 150 110 260 Ventures 7 26 33 13 12 25 Central & other items 16 (3) 13 18 (2) 16 Total credit impairment charge/(release) 193 55 248 199 (184) 15 1 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025, with no change in total credit. Impairment charge. Problem credit management and provisioning (audited) Forborne and other modified loans by client segment A forborne loan arises when a concession has been made to the contractual terms of a loan in response to a customer’s financial difficulties. Net forborne loans increased by $41 million to $544 million (31 December 2024: $503 million) largely due to an increase in net performing forborne loans in CIB. Net non-performing forborne loans decreased by $18 million to $443 million (31 December 2024: $461 million) with a $51 million reduction in CIB partly offset by a $33 million increase in WRB. The table below presents loans with forbearance measures by segment. Group Amortised cost 2025 2024 Corporate & Investment Banking $million Wealth & Retail Banking $million Total $million Corporate & Investment Banking $million Wealth & Retail Banking $million Total $million Gross stage 1 and 2 forborne loans 89 20 109 17 26 43 Modification of terms and conditions 1 89 20 109 17 26 43 Impairment provisions (8) – (8) – (1) (1) Modification of terms and conditions 1 (8) – (8) – (1) (1) Net stage 1 and 2 forborne loans 81 20 101 17 25 42 Collateral – 11 11 – 25 25 Gross stage 3 forborne loans 835 191 1,026 960 148 1,108 Modification of terms and conditions 1 834 191 1,025 959 148 1,107 Refinancing 2 1 – 1 1 – 1 Impairment provisions (501) (82) (583) (575) (72) (647) Modification of terms and conditions 1 (500) (82) (582) (574) (72) (646) Refinancing 2 (1) – (1) (1) – (1) Net stage 3 forborne loans 334 109 443 385 76 461 Collateral 26 21 47 74 53 127 Net carrying value of forborne loans 415 129 544 402 101 503 1 Modification of terms is any contractual change apart from refinancing, as a result of credit stress of the counterparty, i.e. interest reductions, loan covenantwaivers. 2 Refinancing is a new contract to a lender in credit stress, such that they are refinanced and can pay other debt contracts that they were unable to honour. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 43 ![]() Company Amortised cost 2025 2024 Corporate & Investment Banking $million Wealth & Retail Banking $million Total $million Corporate & Investment Banking $million Wealth & Retail Banking $million Total $million Gross stage 1 and 2 forborne loans 50 11 61 – 15 15 Modification of terms and conditions 1 50 11 61 – 15 15 Impairment provisions (2) – (2) – – – Modification of terms and conditions 1 (2) – (2) – – – Net stage 1 and 2 forborne loans 48 11 59 – 15 15 Collateral – 9 9 – 14 14 Gross stage 3 forborne loans 593 3 596 701 7 708 Modification of terms and conditions 1 593 3 596 701 7 708 Refinancing 2 – – – – – – Impairment provisions (309) (1) (310) (394) (3) (397) Modification of terms and conditions 1 (309) (1) (310) (394) (3) (397) Refinancing 2 – – – – – – Net stage 3 forborne loans 284 2 286 307 4 311 Collateral 21 2 23 62 3 65 Net carrying value of forborne loans 332 13 345 307 19 326 1 Modification of terms is any contractual change apart from refinancing, as a result of credit stress of the counterparty, i.e. interest reductions, loan covenantwaivers. 2 Refinancing is a new contract to a lender in credit stress, such that they are refinanced and can pay other debt contracts that they were unable to honour. Credit risk mitigation Potential credit losses from any given account, customer or portfolio are mitigated using a range of tools such as collateral, netting arrangements, credit insurance and credit derivatives, taking into account expected volatility and guarantees. The reliance that can be placed on these mitigants is carefully assessed in light of issues such as legal certainty and enforceability, market valuation 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 mitigation policy and for the effect of over-collateralisation. The extent of over-collateralisation has been determined 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 arising from ECL. The value of collateral reflects management’s best estimate and is backtested against our prior experience. Collateral held on loans and advances The table below details collateral held against exposures, separately disclosing stage 2 and stage 3 exposure and corresponding collateral. Group Amortised cost 2025 Net amount outstanding Collateral Net exposure Total $million Stage 2 financial assets $million Credit- impaired financial assets (S3) $million Total 2 $million Stage 2 financial assets $million Credit- impaired financial assets (S3) $million Total $million Stage 2 financial assets $million Credit- impaired financial assets (S3) $million Corporate & Investment Banking 1 116,170 5,688 1,226 21,424 1,493 90 94,746 4,195 1,136 Wealth & Retail Banking 53,095 1,128 512 39,761 681 437 13,334 447 75 Ventures 889 3 7 – – – 889 3 7 Central & other items 13,871 – – 4,213 – – 9,658 – – Total 2 184,025 6,819 1,745 65,398 2,174 527 118,627 4,645 1,218 2024 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 1 Includes loans and advances to banks. 2 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 44 ![]() Company Amortised cost 2025 Net amount outstanding Collateral Net exposure Total $million Stage 2 financial assets $million Credit- impaired financial assets (S3) $million Total 2 $million Stage 2 financial assets $million Credit- impaired financial assets (S3) $million Total $million Stage 2 financial assets $million Credit- impaired financial assets (S3) $million Corporate & Investment Banking 1 74,586 3,538 1,006 12,272 939 76 62,314 2,599 930 Wealth & Retail Banking 12,097 312 249 6,771 99 249 5,326 213 – Central & other items 4,516 – – 3,731 – – 785 – – Total 2 91,199 3,850 1,255 22,774 1,038 325 68,425 2,812 930 2024 Corporate & Investment Banking 1 76,759 3,927 833 19,149 1,542 123 57,610 2385 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 1 Includes loans and advances to banks. 2 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures. Collateral – Corporate & Investment Banking (audited) Our underwriting standards encourage taking specific charges on assets and we consistently seek high-quality, investment-grade collateral. 80 per cent (31 December 2024: 88 per cent) of tangible collateral excluding reverse repurchaseagreements and financial guarantees held comprises physical assets or is property based, with the remainder heldin cash. Overall collateral decreased by $5.0 billion to $21.4 billion (31 December 2024: $26.4 billion). Non-tangible collateral,such as guarantees and standby letters of credit, is also held against corporate exposures, although the financial effect of this type of collateral is less significant in terms of recoveries. However, this is considered when determining theprobability of default and other credit-related factors. Collateral is also held against off balance sheet exposures, includingundrawn commitments and trade-related instruments. The following table provides an analysis of the types of collateral held against CIB loan exposures. Corporate & Investment Banking Amortised cost Group Company 2025 $million 2024 $million 2025 $million 2024 $million Maximum exposure 116,170 113,333 74,586 76,759 Property 3,454 3,459 1,925 1,752 Plant, machinery and other stock 710 904 436 636 Cash 1,811 1,031 1,000 835 Reverse repos 6,897 11,972 3,989 10,464 AAA 587 – – – AA- to AA+ 233 897 57 742 A- to A+ 2,428 8,225 2,426 8,225 BBB- to BBB+ 1,229 981 598 564 Lower than BBB- – 95 – – Unrated 2,420 1,774 908 933 Financial guarantees and insurance 5,677 5,564 4,083 4,187 Commodities 11 33 8 8 Ships and aircraft 2,864 3,416 831 1,267 Total value of collateral 1,2 21,424 26,379 12,272 19,149 Net exposure 94,746 86,954 62,314 57,610 1 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures. 2 The group also has credit mitigation through Credit Default Swaps and Credit Linked Notes as set out on page 47. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 45 ![]() Collateral – Wealth & Retail Banking (audited) Group In WRB, fully secured products increased by 2 per cent to 88 per cent of the total portfolio (31 December 2024: 86 per cent) due to an increase in the mortgages portfolio and higher demand for secured wealth products. The following table presents an analysis of loans to individuals by product; split between fully secured, partially secured andunsecured: Amortised cost 2025 2024 Fully secured 1 $million Partially secured 1 $million Unsecured $million Total 2 $million Fully secured 1 $million Partially secured 1 $million Unsecured $million Total 2 $million Maximum exposure 46,855 69 6,171 53,095 40,229 226 6,561 47,016 Loans to individuals Mortgages 25,659 – – 25,659 23,001 – – 23,001 CCPL 5 – – 5,201 5,201 – – 5,930 5,930 Secured wealth products 20,495 – – 20,495 16,595 – – 16,595 Other 4,5 701 69 970 1,740 633 226 631 1,490 Total collateral 2 39,761 31,210 Net exposure 3 13,334 15,806 Percentage of total loans 88% 0% 12% 86% 0% 14% 1 Secured loans are fully secured if the fair value of the collateral is equal to or greater than the loan at the time of origination. All other secured loans are considered to be partly secured. 2 Collateral values are adjusted where appropriate in accordance with our risk mitigation policy and for the effect of over-collateralisation. 3 Amounts net of ECL. 4 Includes Auto Loans previously presented separately. Prior period has been represented. 5 Prior period has been represented between CCPL and Other for $463 million under Fully secured to align product classification. Company In WRB, $9.6 billion which equates to 79 per cent of the portfolio is fully secured (31 December 2024: 80 per cent). The following table presents an analysis of loans to individuals by product; split between fully secured, partially secured and unsecured. Amortised cost 2025 2024 Fully secured 1 $million Partially secured 1 $million Unsecured $million Total 2 $million Fully secured 1 $million Partially secured 1 $million Unsecured $million Total 2 $million Maximum exposure 9,601 47 2,449 12,097 9,375 167 2,237 11,779 Loans to individuals Mortgages 5,082 – – 5,082 5,030 – – 5,030 CCPL 5 – – 1,822 1,822 – – 1,890 1,890 Secured wealth products 3,933 – – 3,933 3,860 – – 3,860 Other 4,5 586 47 627 1,260 485 167 347 999 Total collateral 2 6,771 6,653 Net exposure 3 5,326 5,126 Percentage of total loans 79% 0% 21% 80% 1% 19% 1 Secured loans are fully secured if the fair value of the collateral is equal to or greater than the loan at the time of origination. All other secured loans are considered to be partly secured. 2 Collateral values are adjusted where appropriate in accordance with our risk mitigation policy and for the effect of over-collateralisation. 3 Amounts net of ECL. 4 Includes Auto loans previously presented separately. Prior period has been represented. 5 Prior period has been represented between CCPL and Other for $464 million under fully secured to align product classification. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 46 ![]() Mortgage loan-to-value ratios by geography (audited) Loan-to-value (LTV) ratios measure the ratio of the current mortgage outstanding to the current fair value of the properties on which they are secured. In mortgages, the value of property held as security significantly exceeds the value of mortgage loans. The average LTV of the overall mortgage portfolio is low at 45.3 per cent (31 December 2024: 45.1 per cent). Singapore, which represents 62.6 per cent of the mortgage portfolio as at 31 December 2025, has an average LTV of 42.7 per cent (31 December 2024: 42.5 per cent). An analysis of LTV ratios by geography for the mortgage portfolio is presented in the table below. Amortised cost 2025 2024 Singapore % Malaysia % Jersey % Others % Total % Singapore % Malaysia % Jersey % Others % Total % Less than 50 per cent 51.8 37.1 30.5 61.8 49.8 52.7 37.4 28.2 62.8 51.0 50 per cent to 59 per cent 19.4 15.5 14.0 16.1 17.8 21.8 15.2 14.9 16.5 19.2 60 per cent to 69 per cent 15.8 18.6 30.9 13.1 17.0 15.6 18.1 33.7 12.4 16.7 70 per cent to 79 per cent 12.7 15.9 17.7 7.2 12.5 9.6 16.2 17.6 6.4 10.4 80 per cent to 89 per cent 0.2 10.9 6.3 1.4 2.4 0.1 11.6 3.9 1.2 2.2 90 per cent to 99 per cent 0.0 1.4 0.3 0.3 0.3 0.0 0.9 1.7 0.5 0.4 100 per cent and greater 0.1 0.6 0.3 0.1 0.2 0.1 0.6 0.1 0.3 0.2 Average portfolio loan-to-value 42.7 55.3 57.5 42.4 45.3 42.5 55.4 58.8 42.2 45.1 Loans to individuals – mortgages ($million) 16,054 3,738 2,348 3,519 25,659 13,756 3,332 2,142 3,771 23,001 Collateral and other credit enhancements possessed orcalledupon (audited) The Group obtains assets by taking possession of collateral (such as property, plant and equipment) or calling upon other credit enhancements (such as guarantees). Repossessed properties are sold in an orderly fashion. Where the proceeds are in excess of the outstanding loan balance the excess is returned to the borrower. Certain equity securities acquired may be held by the Group for investment purposes and are classified as fair value through profit or loss, and the related loan written off. The carrying value of collateral possessed and held by the Group as at 31 December 2025 is $Nil (31 December 2024: $23.7 million). Other Credit Risk mitigation Other forms of Credit Risk mitigation are set out below. Credit default swaps The Group has entered into credit default swaps for portfolio management purposes, referencing loan assets with a notional value of $3.5 billion (31 December 2024: $2.8 billion). These credit default swaps are accounted for as financial guarantees 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 $22.4 billion (31 December 2024: $18.6 billion). The Group continues to hold the underlying assets for which the credit linked notes provide mitigation. The credit linked notes are recognised as a financial liability at amortised cost on the balance sheet and are adjusted, where appropriate, for reductions in expected future cash flows with a corresponding credit to credit impairment in the income statement. Off-balance sheet exposures For certain types of exposures, such as letters of credit and guarantees, the Group obtains collateral such as cash depending on internal Credit Risk assessments, as well as in the case of letters of credit holding legal title to the underlying assets should a default take place. Other portfolio analysis This section provides maturity analysis of loans and advances by business segment. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 47 ![]() Contractual maturity analysis of loans and advances by client segment (audited) Shorter maturities give us the flexibility to respond promptly to events and rebalance or reduce our exposure to clients or sectors that are facing increased pressure or uncertainty. Loans and advances to the CIB segment remain predominantly short-term, with $53.5 billion (31 December 2024: $58.4 billion) maturing in less than one year. The WRB loan book continues to be longer-term in nature with 45 per cent (31 December 2024: 47 per cent) of the loans maturing over five years, as mortgages constitute the majority of this portfolio. Group Amortised cost 2025 2024 One year or less $million One to five years $million Over five years $million Total $million One year or less $million One to five years $million Over five years $million Total $million Corporate & Investment Banking 53,534 26,658 13,069 93,261 58,427 20,537 13,461 92,425 Wealth & Retail Banking 25,051 4,557 24,382 53,990 20,579 4,748 22,534 47,861 Ventures 920 – – 920 391 204 – 595 Central & other items 13,611 272 1 13,884 20,259 – 1 20,260 Gross loans and advances to customers 93,116 31,487 37,452 162,055 99,656 25,489 35,996 161,141 Impairment provisions (2,577) (173) (51) (2,801) (2,652) (172) (75) (2,899) Net loans and advances to customers 90,539 31,314 37,401 159,254 97,004 25,317 35,921 158,242 Net loans and advances to banks 22,128 2,259 384 24,771 20,285 2,376 280 22,941 Company Amortised cost 2025 2024 One year or less $million One to five years $million Over five years $million Total 1 $million One year or less $million One to five years $million Over five years $million Total 1 $million Corporate & Investment Banking 38,454 18,067 8,119 64,640 44,859 12,646 8,790 66,295 Wealth & Retail Banking 6,488 2,367 3,752 12,607 5,831 2,278 4,174 12,283 Ventures – – – – – – – – Central & other items 4,249 272 1 4,522 813 – 1 814 Gross loans and advances to customers 49,191 20,706 11,872 81,769 51,503 14,924 12,965 79,392 Impairment provisions (1,558) (86) (34) (1,678) (1,683) (75) (37) (1,795) Net loans and advances to customers 1 47,633 20,620 11,838 80,091 49,820 14,849 12,928 77,597 Net loans and advances to banks 9,685 1,039 384 11,108 10,162 1,313 280 11,755 1 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million (31 December 2024: $10,066 million). The amounts are held within stage 1 and rated as ‘strong’ and is net of an expected credit loss of $3 million (31 December 2024: $2.4 million). #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 48 ![]() Credit quality by industry Loans and advances This section provides an analysis of the Group’s amortised cost portfolio by industry on a gross, total credit impairment andnetbasis. Group To better reflect the concentration risks for net loans and advances to customers, the Group has now included details of geographic concentrations for this portfolio. For total net loans and advances to customers, $61.5 billion (31 December 2024: $63.5 billion) is booked in Singapore, $21.9 billion (31 December 2024: $25.8 billion) is booked in the UK and $24.6 billion (31 December 2024: $18.3 billion) is booked in the US. As the Group operates a global booking model across the CIB and Central and other items segments, the booking location does not necessarily reflect the country of risk (which is the country that can directly or indirectly put the counterparty at risk for the highest amount of potential financial losses) of the underlying counterparties. For the portion of loans and advances analysed by industry in the tables below, $28.5 billion (31 December 2024: $36.8 billion) is booked in Singapore and $21.9 billion (31 December 2024: $25.8 billion) in UK. On a country of risk basis, the UK and Singapore would be approximately 69% (31 December 2024: 74%) and 41% (31 December 2024: 28%) lower respectively, with increases in loans to customers in India, UAE and the US. Amortised cost 2025 Stage 1 Stage 2 Stage 3 Total Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Industry: Energy 10,988 (16) 10,972 640 (17) 623 458 (410) 48 12,086 (443) 11,643 Manufacturing 10,394 (10) 10,384 527 (15) 512 564 (289) 275 11,485 (314) 11,171 Financing, insurance and non-banking 27,437 (9) 27,428 386 (7) 379 72 (66) 6 27,895 (82) 27,813 Transport, telecom and utilities 10,746 (8) 10,738 1,809 (41) 1,768 390 (108) 282 12,945 (157) 12,788 Food and household products 7,120 (6) 7,114 295 (17) 278 185 (177) 8 7,600 (200) 7,400 Commercial real estate 6,720 (3) 6,717 939 (18) 921 163 (91) 72 7,822 (112) 7,710 Mining and quarrying 3,296 (5) 3,291 214 (7) 207 32 (28) 4 3,542 (40) 3,502 Consumer durables 3,235 (6) 3,229 232 (14) 218 194 (190) 4 3,661 (210) 3,451 Construction 1,364 (2) 1,362 319 (1) 318 127 (127) – 1,810 (130) 1,680 Trading companies & distributors 374 – 374 6 – 6 77 (46) 31 457 (46) 411 Government 13,762 (13) 13,749 119 – 119 473 (62) 411 14,354 (75) 14,279 Other 3,256 (5) 3,251 123 – 123 109 (61) 48 3,488 (66) 3,422 Total 2 98,692 (83) 98,609 5,609 (137) 5,472 2,844 (1,655) 1,189 107,145 (1,875) 105,270 Retail Products: Mortgages 24,836 (9) 24,827 542 (3) 539 437 (144) 293 25,815 (156) 25,659 Credit Cards 3,600 (86) 3,514 153 (36) 117 43 (36) 7 3,796 (158) 3,638 Personal Loans and other unsecured lending 2,384 (86) 2,298 81 (7) 74 158 (76) 82 2,623 (169) 2,454 Secured wealth products 20,077 (27) 20,050 313 (5) 308 477 (341) 136 20,867 (373) 20,494 Other 1,646 (1) 1,645 95 (2) 93 68 (67) 1 1,809 (70) 1,739 Total 52,543 (209) 52,334 1,184 (53) 1,131 1,183 (664) 519 54,910 (926) 53,984 Net carrying value (customers)¹ 151,235 (292) 150,943 6,793 (190) 6,603 4,027 (2,319) 1,708 162,055 (2,801) 159,254 Net carrying value (Banks)¹ 24,521 (3) 24,518 216 – 216 41 (4) 37 24,778 (7) 24,771 1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $7,350 million for Customers and $3,698 million for Banks. 2 Includes Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 36. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 49 ![]() Amortised cost 2024 Stage 1 Stage 2 Stage 3 Total Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million 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 Financing, insurance and non-banking 26,699 (12) 26,687 804 (1) 803 86 (74) 12 27,589 (87) 27,502 Transport, telecom and utilities 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 Mining and quarrying 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 & distributors 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 4 103,423 (68) 103,355 6,288 (136) 6,152 2,975 (1,829) 1,146 112,686 (2,033) 110,653 Retail Products: Mortgages 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 2,822 (82) 2,740 67 (13) 54 113 (62) 51 3,002 (157) 2,845 Secured wealth products 16,110 (24) 16,086 387 (5) 382 460 (334) 126 16,957 (363) 16,594 Other 2,3 1,465 (3) 1,462 19 – 19 70 (60) 10 1,554 (63) 1,491 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 similar secured lending held at amortised cost of $9,121 million for Customers and $2,889 million for Banks. 2 Includes Auto Loans previously presented separately. Prior period has been represented. 3 Prior period has been represented between Personal Loans and other unsecured lending and Other for $463 million to align product classification. 4 Include Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 37. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 50 ![]() Company To better reflect the concentration risks for net loans and advances to customers, the Company has now included details of geographic concentrations for this portfolio. For total net loans and advances to customers, $24.6 billion (31 December 2024: $18.3 billion) is booked in the US and $21.9 billion (31 December 2024: $25.8 billion) is booked in the UK, all of which is within the analysis by industry in the table below. As the Company operates a global booking model across CIB and Central and other items segments, the booking location does not necessarily reflect the country of risk (which is the country that can directly or indirectly put the counterparty at risk for the highest amount of potential financial losses) of the underlying counterparties. On a country of risk basis, the UK would be approximately 78% (31 December 2024: 84%) lower respectively, with increases in loans to customers in India and UAE. Amortised cost 2025 Stage 1 Stage 2 Stage 3 Total Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Industry: Energy 6,958 (2) 6,956 360 (5) 355 241 (191) 50 7,559 (198) 7,361 Manufacturing 6,067 (5) 6,062 333 (12) 321 505 (245) 260 6,905 (262) 6,643 Financing, insurance and non-banking 24,275 (7) 24,268 348 (7) 341 24 (18) 6 24,647 (32) 24,615 Transport, telecom and utilities 5,886 (6) 5,880 1,330 (37) 1,293 316 (88) 228 7,532 (131) 7,401 Food and household products 4,209 (3) 4,206 128 (10) 118 46 (44) 2 4,383 (57) 4,326 Commercial real estate 5,005 (2) 5,003 714 (12) 702 161 (89) 72 5,880 (103) 5,777 Mining and quarrying 2,638 (4) 2,634 120 (1) 119 29 (26) 3 2,787 (31) 2,756 Consumer durables 2,436 (6) 2,430 57 (4) 53 175 (171) 4 2,668 (181) 2,487 Construction 1,181 (1) 1,180 14 – 14 66 (65) 1 1,261 (66) 1,195 Trading companies & distributors 215 – 215 1 – 1 54 (24) 30 270 (24) 246 Government 2,865 (8) 2,857 75 – 75 339 (22) 317 3,279 (30) 3,249 Other 1,906 (2) 1,904 1 – 1 84 (51) 33 1,991 (53) 1,938 Total 2 63,641 (46) 63,595 3,481 (88) 3,393 2,040 (1,034) 1,006 69,162 (1,168) 67,994 Retail Products: Mortgages 4,839 (5) 4,834 111 (2) 109 227 (89) 138 5,177 (96) 5,081 Credit Cards 375 (9) 366 80 (16) 64 6 (5) 1 461 (30) 431 Personal Loans and other unsecured lending 1,404 (55) 1,349 31 (3) 28 21 (5) 16 1,456 (63) 1,393 Secured wealth products 3,798 (7) 3,791 53 (2) 51 383 (292) 91 4,234 (301) 3,933 Other 1,198 (2) 1,196 61 (1) 60 20 (17) 3 1,279 (20) 1,259 Total 11,614 (78) 11,536 336 (24) 312 657 (408) 249 12,607 (510) 12,097 Net carrying value (customers)¹ 75,255 (124) 75,131 3,817 (112) 3,705 2,697 (1,442) 1,255 81,769 (1,678) 80,091 Net carrying value (Banks)¹ 10,965 (2) 10,963 145 – 145 1 (1) – 11,111 (3) 11,108 1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $6,865 million for Customers and $855 million for Banks. 2 Include Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 38. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 51 ![]() Amortised cost 2024 Stage 1 Stage 2 Stage 3 Total Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million Gross balance $million Total credit impairment $million Net carrying amount $million 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 Financing, insurance and non-banking 23,812 (9) 23,803 413 (1) 412 24 (22) 2 24,249 (32) 24,217 Transport, telecom and utilities 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 Mining and quarrying 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 & distributors 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 4 61,317 (48) 61,269 3,787 (72) 3,715 2,005 (1,175) 830 67,109 (1,295) 65,814 Retail Products: Mortgages 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 3 1,285 (44) 1,241 32 (8) 24 21 (9) 12 1,338 (61) 1,277 Secured wealth products 3,708 (6) 3,702 79 (2) 77 367 (285) 82 4,154 (293) 3,861 Other 2,3 983 (1) 982 8 – 8 31 (20) 11 1,022 (21) 1,001 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 similar secured lending held at amortised cost of $9,041 million for Customers and $1,423 million for Banks. 2 Includes Auto Loans previously presented separately. Prior period has been represented. 3 Prior period has been represented between Personal Loans and other unsecured lending and Other for $464 million to align product classification. 4 Include Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 39. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 52 ![]() Debt securities and other eligible bills (audited) This section provides further detail on gross debt securities and treasury bills. The standard credit ratings used by the Group are those used by Standard & Poor’s or its equivalent. Debt securities held that have a short-term rating are reported against the long-term rating of the issuer. For securities that are unrated, the Group applies an internal credit rating, as described under the credit rating and measurement section on page 26. Total gross debt securities and other eligible bills increased by $7.5 billion to $103.7 billion (31 December 2024: $96.2 billion) largely due to deployment of excess surplus in Singapore Stage 1 exposures. Stage 1 gross balance increased by $7.7 billion to $102.2 billion (31 December 2024: $94.5 billion) due to deployment of excess surplus in Singapore. Stage 2 gross balance decreased by $0.4 billion to $1.2 billion (31 December 2024: $1.6 billion). Stage 3 gross balance increased by $0.2 billion to $0.3 billion (31 December 2024: $0.1 billion). Group Amortised cost and FVOCI 2025 2024 Gross $million ECL $million Net 2 $million Gross $million ECL $million Net 2 $million Stage 1 102,189 (43) 102,146 94,480 (20) 94,460 • Strong 98,296 (36) 98,260 90,971 (16) 90,955 • Satisfactory 3,893 (7) 3,886 3,509 (4) 3,505 Stage 2 1,198 (5) 1,193 1,612 (3) 1,609 • Strong 68 – 68 560 – 560 • Satisfactory 1,130 (5) 1,125 31 – 31 • High Risk – – – 1,021 (3) 1,018 Stage 3 296 (5) 291 103 (2) 101 Gross balance¹ 103,683 (53) 103,630 96,195 (25) 96,170 1 Stage 3 gross includes $278 million (31 December 2024: $59 million) originated credit-impaired debt securities with $5m impairment (31 December 2024: $Nil) The Group also has credit insurance over $4.2 billion (31 December 2024: $4.03 billion) of other eligible bills. 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 $103,665 million (31 December 2024: $96,179 million). Refer to the Analysis of financial instrument by stage table on page 33. Company Amortised cost and FVOCI 2025 2024 Gross $million ECL $million Net $million Gross $million ECL $million Net $million Stage 1 79,073 (34) 79,039 81,618 (15) 81,603 • Strong 75,799 (28) 75,771 78,648 (12) 78,636 • Satisfactory 3,274 (6) 3,268 2,970 (3) 2,967 Stage 2 390 (2) 388 244 (2) 242 • Strong 48 – 48 – – – • Satisfactory 342 (2) 340 6 – 6 • High Risk – – – 238 (2) 236 Stage 3 – – – – – – Gross balance¹ 79,463 (36) 79,427 81,862 (17) 81,845 1 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 $79,448 million (31 December 2024: $81,855 million). Refer to the Analysis of financial instrument by stage table on page 33. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 53 ![]() IFRS 9 expected credit loss methodology (audited) Approach for determining expected credit losses Credit loss terminology Component Definition Probability of default (PD) The probability that a counterparty will default, over the next 12 months from the reporting date (stage 1) or over the lifetime 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 lifetime (or term structure) PDs are based on statistical models, calibrated using historical data and adjusted to incorporate forward-looking economic assumptions. Loss given default (LGD) The loss that is expected to arise on default, incorporating the impact of forward-looking economic assumptions where relevant, which represents the difference between the contractual cash flows 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 financial asset, taking into account forward-looking economic assumptions where relevant. Exposure at default (EAD) The expected balance sheet exposure at the time of default, taking into account expected changes over the lifetime of the exposure. This incorporates the impact of drawdowns of facilities with limits, principal and repayments of interest and amortisation. To determine the expected credit loss (ECL), these components are multiplied together: PD for the reference period (up to 12 months or lifetime) x LGD x EAD and discounted to the balance sheet date using the effective interest rate as the discount rate. IFRS 9 ECL 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-specific models have also been developed. Thecalibration offorward-looking information is assessed ata country orregion level to take into account local macroeconomic conditions. Retail ECL models are country and product specific given the local nature of the retail business. For less material portfolios, primarily in retail, the Group has adopted less sophisticated approaches based on historical roll rates or loss rates: • For medium-sized portfolios, a roll rate model is applied, which uses a matrix that gives the average loan migration rate between delinquency states from period to period. A matrix multiplication is then performed to generate the final PDs by delinquency bucket over different time horizons. • For smaller portfolios, a loss rate approach is applied. These use an adjusted gross charge-off rate, developed using monthly write-off and recoveries over an appropriate historical observation window (typically 12 months, extended to 24 months for certain portfolios where this provides a more stable and representative estimate), and total outstanding balances. • While the loss rate approaches do not incorporate forward looking information, to the extent that there are significant changes in the macroeconomic forecasts, an assessment is completed on whether an adjustment to the modelled output is required. For a limited number of exposures, proxy parameters or approaches are used where the data is not available to calculate the origination PDs for the purpose of applying the SICR criteria; or for some retail portfolios where a full history of LGD data is not available, estimates based on the loss experience from similar portfolios are used. The use of proxies is monitored and will reduce over time. When existing IFRS 9 PD models are redeveloped, where material and without undue cost or effort, origination PDs are recalibrated if there is a change in measurement approach to ensure credit risk is measured on a consistent basis. A change in measurement approach refers to changes in the conceptual or methodological basis of PD estimation that affect comparability of estimates with the previous model. The following processes are in place to assess the ongoing performance of the models: • Quarterly model monitoring that uses recent data to compare the differences between model predictions and actual outcomes against approved thresholds. • Annual independent validation is performed by Group Model Valuation (GMV) with the depth of validation varies determined by the model materiality. Material models would go through a full annual re-validation process, while a less intensive validation process will be performed on non-material models. Application of lifetime ECL ECL is estimated based on the period over which the Group is exposed to Credit Risk. For the majority of exposures this equates to the maximum contractual period. For retail credit cards and corporate overdraft facilities, 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 facilities is 24 months. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 54 Key assumptions and judgements indeterminingECL Incorporation of forward-looking information The evolving economic environment is a key determinant of the ability of a bank’s clients to meet their obligations as they fall due. It is a fundamental principle of IFRS 9 that the provisions banks hold against potential future credit risk losses should depend not just on the health of the economy today but should also take into account potential changes to the economic environment. For example, if a bank were to anticipate a sharp slowdown in the world economy over the coming year, it should hold more provisions today to absorb the credit losses likely to occur in the near future. To capture the effect of changes to the economic environment, the PDs and LGDs used to calculate ECL incorporate forward- looking information in the form of forecasts of the values of economic variables and asset prices that are likely to have an effect on the repayment ability of the Group’s clients. The ‘Base Forecast’ of the economic variables and asset prices is based on management’s view of the five-year outlook, supported by projections from the Group’s in-house research team and outputs from a third-party model that project specific economic variables and asset prices. The research team takes consensus views into consideration and senior management reviews projections for some core country variables against consensus when forming their view of the outlook. For the period beyond five years, management utilises the in-house research view and third-party model outputs, which allow for a reversion to long-term growth rates or norms. All projections are updated on a quarterly basis. Forecast of key macroeconomic variables underlying the ECL calculation and the impact on non-linearity In the Base Forecast – management’s view of the most likely outcome – the pace of growth of the world economy in 2026 is expected to remain broadly unchanged from 2024 at around 3.1 per cent. This compares to the average of 3.7 per cent growth for the 10 years prior to COVID-19 (between 2010 and 2019). Growth in 2025 had been supported by exporters front-loading exports to the US and consumers in key markets remaining resilient. 2025 for many economies is likely to be a year of transition from monetary to fiscal policy, and from export-led to increasingly domestic (particularly investment-led) growth. The US economy is expected to grow slightly faster in 2026 than the 1.5 per cent growth for last year. The outlook is supported by strong business investment and spending, which will be underpinned by corporate tax cuts and the race for AI adoption. Similarly, the outlook for the Middle East is expected to be slightly better in 2026 as OPEC+ cuts are phased out resulting in the gradual recovery in oil output. Ongoing diversification and infrastructure programmes will also support investment spending. In Asia growth is expected to remain robust though moderate on the fading effects from the strong front-loading of exports to the US in 2025. Political uncertainty in some countries may also weigh on growth. Africa is expected to remain strong with the region less exposed than others to trade tensions. In larger economies such as Nigeria and South Africa, reform momentum will provide additional support. In contrast, growth prospects in the Euro area are expected to remain muted at around 1 per cent (unchanged from 2025) given trade pressures – both from UStariffs and increasing competition from China – and the uneven picture across economies in the region. The risks around the economic outlook remain elevated amidpersistent trade policy uncertainty, heightened geopolitical tensions, including around disruptions toglobalinternational relationships, and fears of financial-market corrections – allofwhich point topotentially higherprobability ofadverseoutcomes. While the quarterly Base Forecast inform the Group’s strategic plan, one key requirement of IFRS 9 is that the assessment of provisions should consider multiple future economic environments. For example, the global economy may grow at a different pace than the Base Forecast, and these variations would have different implications for the provisions that the Group should hold today. As the negative impact of an economic downturn on credit losses tends to be greater than the positive impact of an economic upturn, iftheGroup sets provisions only on the ECL under the Base Forecast it might maintain a level of provisions that does not appropriately capture the range of potential outcomes. To address the inherent uncertainty in economic forecast, and the property of skewness (or non-linearity), IFRS 9 requires reported ECL to be a probability-weighted ECL calculated over a range of possible outcomes. To assess the range of possible outcomes, the Group simulates a set of 50 scenarios around the Base Forecast, calculates the ECL under each of them and assigns an equal weight of 2 per cent to each scenario outcome. These scenarios are generated by a Monte Carlo simulation, whichaddresses the challenges of crafting many realistic alternative scenarios in the many countries in which the Group operates. The alternative scenarios are modelled while considering the degree of historical uncertainty (or volatility) observed from Q1 1990 to Q3 2023 around economic outcomes, the trends in each macroeconomic variable modelled and the correlation in the unexplained movements around these trends. Collectively, the 50 scenarios explore a range of hypothetical alternative outcomes for the global economy, including scenarios that turn out better than expected and those that amplify anticipated stresses. The tables on page 57 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 within the BaseForecast. China’s GDP growth is expected to ease slightly to 4.3 per cent in 2026 from 4.9 per cent in 2025, reflecting the fading impact from the front-loading of activity last year and the ongoing correction in the property sector. Similarly, GDP growth is expected to moderate in Singapore as external demand turns less supportive in 2026. While growth in India isalso expected to ease to 6.5 per cent from 6.9 per cent in 2025, it will remain amongst the fastest growing economies in theworld. The outlook will be supported by consumption (supported by policies such as tax cuts), ample rainfall and low inflation. Growth in the UAE is also expected to remain robust in 2026 at 4 per cent (down from 5 percent in 2025). The forecast assumes continued hydrocarbon-sector expansion as oil output rises. Growth in the non-oil sector is also expected to be strong. Brent crude oil prices are expected to average around $63 in2026 compared to $69 in 2025. They are expected to rise modestly over the next few years. The five-year average oil price is $70. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 55 ![]() 2025 year-end forecasts 7 China 5 UAE Singapore 6 India 5 yr average base forecast Base forecast quarterly peak/trough Low 2 High 3 5 yr average base forecast Base forecast quarterly peak/ trough Low 2 High 3 5 yr average base forecast Base forecast quarterly peak/ trough Low 2 High 3 5 yr average base forecast Base forecast quarterly peak/ trough Low 2 High 3 GDP growth (YoY%) 3.8 4.7/3.3 (6.9) 14.3 3.3 4.8/2.2 (3.9) 9.4 2.7 4.3/0.5 (5.5) 9.8 6.3 6.5/5.9 3.0 10.5 Unemployment (%) 3.3 3.4/3.3 2.9 3.8 N/A N/A NA NA 2.8 3.0/2.8 1.7 4.3 N/A N/A NA NA 3-month interest rates (%) 1.4 1.5/1.4 (0.3) 3.6 3.7 3.7/3.7 0.3 7.0 2.4 3.0/1.0 (0.4) 6.4 6.3 6.5/5.8 1.0 13.7 House prices (YoY%) (0.1) 2.3/(2.5) (8.3) 15.4 2.1 4.2/1.8 (15.8) 21.4 2.8 3.7/2.6 (16.8) 22.5 6.3 6.5/6.1 2.0 10.6 2024 year-end forecasts China 5 UAE Singapore 6 India 5 yr average base forecast Base forecast quarterly peak/ trough Low 2 High 3 5 yr average base forecast Base forecast quarterly peak/ trough Low 2 High 3 5 yr average base forecast Base forecast quarterly peak/ trough Low 2 High 3 5 yr average base forecast Base forecast quarterly peak/ 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 2025 year-end forecasts 2024 year-end forecasts 5 yr average base forecast Base forecast peak/trough Low 2 High 3 5 yr average base forecast Base forecast peak/trough Low 2 High 3 Brent Crude, $ pb 69.5 75.2/62.0 30 146.5 76.2 77.8/74.8 44.5 107.8 1 NA – Not available. 2 Represents the 10 th percentile in the range of economic scenarios used to determine non-linearity. 3 Represents the 90 th percentile in the range of economic scenarios used to determine non-linearity. 4 Base forecasts are evaluated from Q1 2026 to Q4 2030. The forward-looking simulation starts from Q1 2026. 5 A judgemental management adjustment is held in respect of the China commercial real estate sector as discussed below. 6 Singapore unemployment rate covers the resident unemployment rate, which refers to citizens and permanent residents. 7 Data presented are those used in the calculation of ECL. These may differ slightly to forecasts presented elsewhere in the Financial statements as they are finalised before the period end. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 56 ![]() Judgemental adjustments As at 31 December 2025, the Group held $96 million (31 December 2024: $50 million) of judgemental management overlays, $74 million (31 December 2024: $42 million) of which relates to CIB, $11 million (31 December 2024: $1 million) to WRB and $11 million (31 December 2024: $7 million) to Central and other items. Overlays in CIB and Central and other items have been taken for Bangladesh by estimating the impact of deterioration to certain exposures in the country which reflects that the political situation has contributed to an increasing level of uncertainty in the macroeconomic outlook as well as the impact of a recent change in the restructuring policy announced by the local regulator and has been determined by estimating the impact of deterioration to certain exposures. Overlays have also been taken across CIB andWRB for marginal amounts relating to climate risks andother items. Read more on the adjustment for Climate Risk in Note 1 of the "Notes to the financial statements" on page 92 As at 31 December 2025, judgemental post model adjustments which increased ECL by a net $38 million (31 December 2024: $9 million decrease in ECL) have been applied. There was a $56 million (31 December 2024: $16 million) upward adjustment for non-linearity which has been estimated by assigning probability weights of 59 per cent, 26per cent and 15 per cent respectively to the Base Forecast, Market Correction and Bank Capital Stress Test roll forward scenarios which are presented on page 58 and comparing this to the unweighted Base Forecast ECL. At 31 December 2024, probability weights of 68 per cent, 22 per cent and 10 per cent respectively to the Base Forecast, Higher for Longer Commodities and Rates and Global Trade and Geopolitical Tensions scenarios as disclosed in the 2024 financial statements. The nonlinearity PMA represents the difference between the probability weighted ECL calculated using the three scenarios and the probability weighted ECL calculated by the Monte Carlo model together with an adjustment of $4 million (31 December 2024: Nil) to incorporate non- linearity for portfolios under a loss rate approach. There was also a remaining $18 million reduction (31 December 2024: $25 million reduction) in ECL which relates to adjustments applied to and for certain WRB models, primarily to adjust for temporary factors impacting modelled outputs. These will be released when these factors normalise. Judgemental adjustments are re-assessed quarterly, are reviewed and approved by the IFRS 9 Impairment Committee and will be released when the risks are no longer relevant. Stage 3 assets Credit-impaired assets managed by Stressed Asset Risk incorporate forward-looking economic assumptions in respect of the recovery outcomes identified, and are assigned individual probability weightings. These assumptions are not based on a Monte Carlo simulation but are informed by the Base Forecast. Sensitivity of expected credit loss calculation to macroeconomic variables The ECL calculation relies on multiple variables and is inherently non-linear and portfolio-dependent, which implies that no single analysis can fully demonstrate the sensitivity of the ECL to changes in the macroeconomic variables. The Group has conducted a series of analyses with the aim of identifying the macroeconomic variables which might have the greatest impact on overall ECL. These encompassed single variable and multi-variable exercises, using simple up/ down variation and extracts from actual calculation data, as well as bespoke scenario design and assessments. The primary conclusion of these exercises is that no individual macroeconomic variable is materially influential. The Group believes this is plausible as the number of variables used in the ECL calculation is large. This does not mean that macroeconomic variables are uninfluential; rather, that the Group believes that consideration of macroeconomics should involve whole scenarios, as this aligns with the multi-variable nature of the calculation. The Group faces downside risks in the operating environment related to the uncertainties surrounding the macroeconomic outlook. To explore this, a sensitivity analysis of ECL was undertaken to explore the effect of slower economic recoveries across the Group’s footprint markets. Two downside scenarios are considered. The first scenario explores a modest downturn driven by financial market corrections in the US and other major economies. The second is a roll forward of the 2025 Bank of England’s Bank Capital Stress Test (BCST) scenario and is characterised by a synchronised and severe downturn across all key markets, global supply side disruptions (including tariffs) and a high commodity price, inflation and interest rate environment. Baseline Market Correction Bank Capital Stress Test Five year average Peak/Trough Five year average Peak/Trough Five year average Peak/Trough China GDP 3.8 4.7/3.3 3.4 4.1/1.9 2.8 4.4/(1.8) China unemployment 3.3 3.4/3.3 3.5 3.7/3.3 4.4 5.0/3.6 China property prices (0.1) 2.3/(2.5) (2.6) 1.8/(10.0) (4.1) 10.8/(12.4) UAE GDP 3.3 4.8/2.2 3.2 4.5/2.4 2.2 3.9/(0.7) UAE property prices 2.1 4.2/1.8 1.9 2.5/0.6 (4.7) 8.1/(16.2) US GDP 1.9 2.1/1.2 1.2 2.5/(0.8) 0.1 1.4/(3.8) Singapore GDP 2.7 4.3/0.5 2.2 3.7/(1.2) 1.1 3.8/(7.0) India GDP 6.3 6.5/5.9 5.9 6.3/4.9 4.8 6.2/0.0 Crude oil 69.5 75.2/62.0 67.5 75.2/55.6 109.1 139.2/81.0 #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 57 ![]() The total reported stage 1 and 2 ECL provisions (including both on and off-balance sheet instruments) would be approximately $67 million higher under the Market Correction scenario and $350 million higher under the BCST roll forward scenario than the baseline ECL provisions (which 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 2.6 per cent in the base case to 2.7 per cent and 4.3 per cent respectively under the Market Correction and BCST roll forward 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 the Market Correction scenario, the majority of the increase in CIB came from the main corporate and project finance portfolio, with commercial real estate and sovereign exposures impacted in the BCST roll forward scenario. 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 provisions as these primarily relate to unsecured retail exposures for which the LGD is not sensitive to changes in the macroeconomic forecasts. There is also no material change for non-modelled stage 3 exposures as these are more sensitive to client specific factors than to alternative macroeconomic scenarios. The actual outcome of any scenario may be materially different due to, among other factors, the effect of management actions to mitigate potential increases in risk and changes in the underlying portfolio. Modelled provisions Increase in ECL Market Correction $million Bank Capital Stress Test $ million Stage 1 Corporate & Investment Banking 23 23 Wealth & Retail Banking 7 14 Ventures – – Central & Others 9 64 Total increase in stage 1 ECL 39 101 Stage 2 Corporate & Investment Banking 22 145 Wealth & Retail Banking 6 51 Ventures – – Central & Others – 53 Total increase in stage 2 ECL 28 249 Total Stage 1 & 2 Corporate & Investment Banking 45 168 Wealth & Retail Banking 13 65 Ventures – – Central & Others 9 117 Total increase in stage 1 & 2 ECL 67 350 Significant increase in credit risk (SICR) Quantitative criteria SICR is assessed by comparing the risk of default at the reporting date to the risk of default at origination. Whether a change in the risk of default is significant or not is assessed using quantitative and qualitative criteria. These criteria 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 lifetime probability of default (IFRS 9 PD) over the residual 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 initial recognition as these may increase by several multiples without representing a significant increase in credit risk. Where IFRS 9 PDs are relatively high at initial recognition, a relative measure is more appropriate in assessing whether there is a significant increase in credit risk, as the IFRS 9 PDs increase more quickly. The SICR thresholds have been calibrated based on the following principles: • Stability – The thresholds are set to achieve a stable stage 2 population at a portfolio level, trying to minimise 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 • Relationship with 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 quantitative thresholds are a relative 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 WRB (excluding Private Banking) clients, portfolio specific quantitative thresholds are applied across the following portfolios: Credit cards (Singapore, Malaysia and UAE), Business client mortgages (India), and Mortgages (UAE). In 2025, we have updated SICR for UAE mortgage, Singapore Credit cards and Malaysia Credit cards. The impact of these changes was not material. These thresholds capture relative and absolute increases in IFRS 9 PD, with average lifetime IFRS 9 PD cut-offs. They are further tailored based on customer utilisation bands for credit cards; behavioural score and maximum delinquency in the last 12 months for Business client mortgages. The approach also differentiates between exposures that are current and those that are 1 to 29 days past due. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 58 ![]() The range of thresholds applied are: Portfolio Relative IFRS 9 PD increase (%) Absolute IFRS 9 PD increase (%) Customer utilisation (%) Average IFRS 9 PD (lifetime) Credit cards – Current 70 – 200 3.5 – 6.2 85 – 95 4.15 – 13.5 Credit cards – 1-29 days past due 20 – 180 2.5 – 6.1 25 – 46 5.4 – 9.5 Business client mortgages – Current 100 4.4 – – Business client mortgages – 1-29 days past due 100 7.0 – – Mortgages-Current 500 2.75 – – Mortgages-1-29 days past due 700 3.5 – – For all other material WRB portfolios (excluding Private Banking) for which a statistical model has been built, the quantitative 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 within their personal loan portfolios compared with the Group’s other personal loan portfolios. The original lifetime IFRS 9 PD term structure is determined based on the original application score or risk 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 margining or LTV covenants have been breached. ForClass I assets (lending against diversified liquid collateral), if these margining requirements have not been met within 30days of a trigger, a SICR is assumed to have occurred. ForClass I and Class III assets (real-estate lending), a SICR isassumed to have occurred where the bank is unable to ‘selldown’ the applicable assets to meet revised collateral requirements within five days of a trigger. Class II assets aretypically unsecured or partially secured, or secured against illiquid collateral such as shares in private companies.Significant credit deterioration of these assets isdeemed tohave occurred when any early alert trigger hasbeen breached. Qualitative criteria Qualitative factors that indicate that there has been asignificant 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 exhibits risk or potential weaknesses of a material nature requiring closer monitoring, supervision or attention by management. Weaknesses insuch a borrower’s account, if left uncorrected, could result indeterioration of repayment prospects and the likelihood ofbeing downgraded. Indicators could include a rapid erosion of position within the industry, concerns overmanagement’s ability to manage operations, weak/deteriorating operating results, liquidity 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 significant increase in credit risk. Accounts rated CG12 are primarily managed by relationship managers in the CIB unit with support from SAG for certain accounts. All CIB clients are placed in CG12 when they are 30 DPD unless they are granted a waiver through a strict governance process. In WRB, SICR is also assessed for where specific risk 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 specific products/customer cohorts or across the overall consumer banking portfolio in the affected market. For less material portfolios, which are modelled based on a roll-rate or loss-rate approach, SICR is primarily assessed through the 30 DPD trigger. Backstop Across all portfolios, accounts that are 30 or more DPD on contractual payments of principal and/or interest that have not been captured by the criteria above are considered to have experienced a significant increase in credit risk. 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 criteria. Such instances are expected to be rare, for example due to events and material uncertainties arising close to the reporting date. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 59 ## Traded Risk #### Risk review and Capital review Traded Risk Counterparty Credit Risk Counterparty Credit Risk is the potential for loss in the event of the default of a derivative counterparty, after taking into account the value of eligible collaterals and risk mitigation techniques. The Group’s counterparty credit exposures are included in the Credit Risk section. Derivative financial instruments Credit Risk mitigation The Group enters into master netting agreements, which inthe event of default result in a single amount owed byortothe counterparty through netting the sum ofthepositive and negative mark-to-market values ofapplicable derivative transactions. In addition, the Group enters into collateral agreements withcounterparties when collateral is deemed a necessary ordesirable mitigant to the exposure. Cash collateral includescollateral called under a variation margin process from counterparties if total uncollateralised mark-to-market exposure exceeds the threshold and minimum transfer amount specified in the CSA. With certain counterparties, theCSA is reciprocal and requires the Group to post collateral if the overall mark-to-market values of positions are in the counterparty’s favour and exceed an agreed threshold. Tomitigate settlement risk of FX transactions, the Group usessafe settlement processes like Delivery versus Payment (DvP) and Continuously-Linked Settlements (CLS). TheGroupalso enters into risk-reducing bilateral netting agreements to net payments and receipts of the same currency on the same day. Market Risk (audited) Market Risk is the potential for fair value loss due to adverse moves in financial markets. A summary of our current policies and practices regarding Market Risk management is provided in the Principal Risks section (page 27). The primary categories of Market Risk for the Group are: • Interest Rate Risk: arising from changes in yield curves and implied volatilities • Foreign Exchange Risk: arising from changes in currency exchange rates and implied volatilities • Commodity Risk: arising from changes in commodity prices and implied volatilities • Credit Spread Risk: arising from changes in the price of debt instruments and credit-linked derivatives and driven by factors other than the level of risk-free interest rates • Equity Risk: arising from changes in the prices of equities and implied volatilities Market Risk movements (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. Global financial markets generally proved resilient in 2025. The first half of the year was marked by trade concerns due to the US raising tariffs to the highest levels in a century and causing developed market equities to record a year-to-date fall of 17 per cent in April. The second half of the year saw fiscal and monetary stimulus with all major asset classes delivering positive returns and developed market equities ending the year with a 22 per cent return from the low in April. Highlights included: President Trump’s April tariff announcement triggering a two-day $5 trillion stock market retracement followed by recovery as tariffs were paused and/or negotiated; the Federal Reserve cutting rates three times in 2025, while the European Central Bank cut rates eight times and the Bank of Japan hiked; oil prices reaching $78/barrel in June 2025 after military confrontation between Israel and Iran but falling to $60/barrel by year end on increased supply and weakening demand; Big Technology firms spending c$400 billion on AI infrastructure, raising concerns about the viability of returns; notable defaults in Q4 in the Private Credit market, including First Brands Group and Tricolor Holdings; and the price of gold increasing by 65 per cent as it is increasingly perceived as a safe haven asset. Trading VaR The Group’s exposure to Market Risk arises predominantly from the Trading book: • The Group provides clients with access to markets, facilitation of which entails the Group taking moderate Market Risk positions. All trading teams support client activity. There are no proprietary trading teams. Hence, income earned from Market Risk-related activities is primarily driven by the volume of client activity. The average level of trading VaR in 2025 was $19.7 million, 7 per cent higher than 2024 ($18.4 million). The increase in average trading VaR was driven by an increase in market volatility combined with a VaR model enhancement to make the model more responsive to market volatility. Directors’ Report and Financial Statements 2025 | Standard Chartered 60 ![]() Daily Value at Risk (VaR at 97.5%, one day) (audited) Trading 2025 2024 Average $million High $million Low $million Year end $million Average $million High $million Low $million Year end $million Commodity Risk 9.1 18.8 2.4 11.0 4.5 9.7 2.3 4.1 Interest Rate Risk 9.8 19.8 6.0 9.2 10.7 18.2 5.6 12.4 Credit Spread Risk 7.2 10.4 3.4 5.9 4.6 8.5 2.9 3.4 Foreign Exchange Risk 6.8 12.8 3.5 4.0 8.9 15.6 5.1 7.6 Diversification effect (13.2) NA NA (13.1) (10.3) NA NA (6.0) Total 1 19.7 31.3 12.4 17.0 18.4 29.4 11.0 21.5 The following table sets out how trading VaR is distributed across the Group’s businesses: Trading 2025 2024 Average $million High $million Low $million Year end $million Average $million High $million Low $million Year end $million Macro Trading 2 15.4 24.6 7.8 13.9 15.8 27.7 8.0 17.7 Global Credit 9.4 14.0 5.5 5.9 5.2 9.2 3.1 4.0 XVA 3.9 6.2 2.8 3.4 4.3 5.7 3.3 3.3 Diversification effect (9.0) NA NA (6.2) (6.9) NA NA (3.5) Total 1 19.7 31.3 12.4 17.0 18.4 29.4 11.0 21.5 1 The total VaR is non-additive across risk types due to diversification effects, which is measured as the difference between the sum of the VaR by individual risk type or business and the combined total VaR. As the maximum and minimum occur on different days for different risk types or businesses, it is not meaningful to calculate a portfolio diversification benefit for these measures. 2 Macro Trading comprises the Rates, FX and Commodities businesses. Structural foreign exchange exposures The tables below set out the principal structural foreign exchange exposures (net of investment hedges) of the Group and the net investment hedges using derivative financial instruments to partly cover the Group’s exposure to various foreign exchange currencies. 2025 2024 Structural foreign exchange exposure (net of investment hedges) $million Net investment hedges $million Structural foreign exchange exposure (net of investment hedges) $million Net investment hedges $million Singapore dollar 3,931 – 3,279 – Indian rupee 2,159 3,099 3,451 1,784 Malaysian ringgit 1,637 – 1,538 – Euro 1,448 – 1,112 – Bangladeshi taka 1,102 – 1,113 – Thai baht 769 – 763 – UAE dirham 624 1,852 797 1,470 Pakistani rupee 381 – 392 – Indonesian rupiah 264 – 230 – Other 3,971 29 3,512 – Total 16,286 4,980 16,187 3,254 Changes in the valuation of these positions are taken to translation reserves. For analysis of the Group’s capital position and requirements, refer to the Capital Review on page 71. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 61 ![]() Non-Trading VaR The Group’s exposure to Market Risk also arises from the Non-trading book: • Treasury is required to hold a liquid assets buffer, much of which is held in high-quality marketable debt securities • The Group underwrites and sells down loans, and invests in select investment grade debt securities with no trading intent The average level of non-trading VaR in 2025 was $36.8 million, 55 per cent higher than 2024 ($23.8 million). The increase in average non-trading VaR was driven by an increase in market volatility combined with a VaR model enhancement to make the model more responsive to market volatility and larger US agency bonds inventory in the CIB non-trading portfolio. Daily Value at Risk (VaR at 97.5%, one day) (audited) Non-Trading 1 2025 2024 Average $million High $million Low $million Year end $million Average $million High $million Low $million Year end $million Interest Rate Risk 29.7 45.1 16.5 28.3 18.4 23.6 11.5 22.8 Credit Spread Risk 15.5 24.6 9.9 9.9 13.1 21.3 8.1 11.5 Commodity Risk 1.3 4.9 0.2 1.0 – – – – Equity Risk – – – – 0.4 0.9 – – Diversification effect (9.7) NA NA (6.5) (8.1) NA NA (4.2) Total 2 36.8 51.0 22.8 32.7 23.8 30.5 17.4 30.1 The following table sets out how non-trading VaR is distributed across the Group’s businesses: Non-Trading 1 2025 2024 Average $million High $million Low $million Year end $million Average $million High $million Low $million Year end $million Global Credit 22.5 31.4 9.9 21.6 4.0 9.5 2.3 8.2 Treasury 23.4 33.0 16.7 17.9 22.8 27.2 16.8 27.0 Macro Trading 1.3 4.9 0.2 1.0 - - - - Listed Private Equity – – – – 0.4 0.9 – – Diversification effect (10.4) NA NA (7.8) (3.4) NA NA (5.1) Total 2 36.8 51.0 22.8 32.7 23.8 30.5 17.4 30.1 1 The non-trading book VaR does not include the loan underwriting business. 2 The total VaR is non-additive across risk types due to diversification effects, which is measured as the difference between the sum of the VaR by individual risk type or business and the combined total VaR. As the maximum and minimum occur on different days for different risk types or businesses, it is not meaningful to calculate a portfolio diversification benefit for these measures. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 62 ![]() Liquidity and Funding risk Liquidity and Funding Risk is the risk that the Group may not have sufficient stable or diverse sources of funding to meet its obligations as they fall due. The Group follows the PLC Group’s Liquidity and Funding Risk framework, which requires each country to ensure that it operates within predefined liquidity limits and remains in compliance with PLC Group’s liquidity policies and practices, as well as local regulatory requirements. The table below shows the composition of liabilities in which customer deposits make up 52 per cent of total liabilities and equity as at 31 December 2025, the majority of which are current accounts, savings accounts and time deposits. Composition of liabilities and equity Percentage Equity 6.0% Subordinated liabilities and other borrowed funds 1.4% Debt securities in issue 9.8% Derivative financial instruments 11.5% Customer accounts 52.1% Deposit by banks 5.9% Other liabilities 13.3% Total 100.0% Liquidity and Funding risk metrics The Group monitors key liquidity metrics regularly on a country basis. The following liquidity and funding Board Risk Appetite metrics define the maximum amount and type of risk that the Group is willing to assume in pursuit of its strategy: liquidity coverage ratio (LCR), internal liquidity stress tests, recovery capacity and net stable funding ratio (NSFR). In addition to the Board Risk Appetite, there are further limits that apply at Group and country level to measure and monitor specific risks such as cross currency risk, concentration risk and short term funding risk. Liquidity coverage ratio (LCR) The LCR aims to ensure that a bank has sufficient unencumbered high-quality liquid assets to meet its liquidity needs in a 30-calendar-day liquidity stress scenario. Standard Chartered Bank is not regulated for LCR, however, the bank and material subsidiaries in the consolidation group have standalone LCR ratios above 100 per cent at 31 December 2025, calculated under the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook. Stressed coverage Stress testing and scenario analysis are used to assess the financial and management capability to continue to operate effectively under extreme, but plausible, operating conditions and to understand the potential threats to the PLC Group’s liquidity and other financial resources. The PLC Group’s internal liquidity adequacy assessment process (‘ILAAP’) stress testing framework covers the following stress scenarios: • Standard Chartered-specific – Captures the liquidity impact from an idiosyncratic event affecting Standard Chartered only, with the rest of the market assumed to be operating normally. • Market wide – Captures the liquidity impact from amarketwide crisis affecting all participants in acountry,region or globally. • Combined – Assumes both Standard Chartered-specific and Market-wide events affect the PLC Group simultaneously and hence is the most severe scenario. All scenarios include, but are not limited to, modelled outflows for retail and wholesale funding, off-balance sheet funding risk, cross currency funding risk, intraday risk, franchise risk and risks associated with a deterioration of a firm’s credit rating. Concentration risk approach captures single name and industry concentrations. As of 31 December 2025, all entities within the Group follow a consistent approach and met their individual ILAAP stress test requirements within risk appetite, and as a result, ensure Group has surplus liquidity on a consolidated basis to meet the defined risk appetite. Net stable funding ratio (NSFR) The NSFR is a balance sheet metric which requires institutions to maintain a stable funding profile in relation to an assumed duration of their assets and off-balance sheet activities over a one-year horizon. It is the ratio between the amount of available stable funding (ASF) and the amount of required stable funding (RSF). ASF factors are applied to balance sheet liabilities and capital, based on their perceived stability and the amount of stable funding they provide. Likewise, RSF factors are applied to assets and off-balance sheet exposures according to the amount of stable funding they require. Standard Chartered Bank is not regulated for NSFR, however the bank and material subsidiaries in the consolidation have standalone NSFR ratios above 100 per cent at 31 December 2025. Liquidity pool The liquidity value of the Group’s LCR eligible liquidity pool at the reporting date was $142 billion. The figures in the below table account for haircuts, currency convertibility and portability constraints, and therefore are not directly comparable with the consolidated balance sheet. A liquidity pool is held to offset stress outflows as defined in the LCR per PRA rulebook. Group Company 2025 $million 2024 $million 2025 $million 2024 $million Level 1 securities Cash and balances at central banks 67,309 69,453 50,444 42,180 Central banks, governments/public sector entities 58,290 42,389 28,941 23,714 Multilateral development banks and international organisations 10,624 14,385 8,055 14,287 Other 396 343 376 343 Total Level 1 securities 136,619 126,570 87,816 80,524 Level 2A securities 4,541 4,060 3,101 3,306 Level 2B securities 833 411 799 410 Total LCR eligible assets 141,993 131,041 91,716 84,240 ## Liquidity and Funding Risk #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 63 ![]() Liquidity analysis of the Group’s balance sheet (audited) Contractual maturity of assets and liabilities The following table presents assets and liabilities by maturity groupings based on the remaining period to the contractual maturity date as at the balance sheet date on a discounted basis. Contractual maturities do not necessarily reflect actual repayments or cash flows. Within the tables below, cash and balances with central banks, interbank placements and investment securities that are fair value through other comprehensive income are used by the Group principally for liquidity management purposes. As at the reporting date, assets remain predominantly short-dated, with 65 per cent maturing in one year. Group 2025 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Assets Cash and balances at central banks 62,045 – – – – – – 2,898 64,943 Derivative financial instruments 16,060 10,589 9,828 4,501 3,769 5,580 9,724 6,428 66,479 Loans and advances to banks 1,2 13,885 14,124 9,945 5,251 3,550 6,050 2,660 1,167 56,632 Loans and advances to customers 1,2 59,388 26,247 13,310 9,954 8,752 23,494 23,119 40,835 205,099 Investment securities 1 14,428 18,630 12,067 10,529 9,401 15,016 32,814 34,408 147,293 Other assets 4,614 33,972 1,089 992 1,362 388 31 5,234 47,682 Due from subsidiary undertakings and other related parties 5,234 – – – – – – – 5,234 Total assets 175,654 103,562 46,239 31,227 26,834 50,528 68,348 90,970 593,362 Liabilities Deposits by banks 1,3 26,152 1,966 1,340 690 612 2,062 2,222 4 35,048 Customer accounts 1,4 238,169 30,048 19,038 7,067 7,474 5,133 1,427 589 308,945 Derivative financial instruments 16,958 13,463 9,147 4,830 3,290 5,303 9,840 5,389 68,220 Senior debt 5 800 1,340 1,276 1,171 1,505 3,470 6,147 5,858 21,567 Other debt securities in issue 1 2,853 3,239 8,989 5,692 3,383 2,189 7,804 2,648 36,797 Due to parent companies and other related undertakings 37,272 – – – – – – – 37,272 Other liabilities 6,468 26,620 871 547 163 1,350 1,800 3,881 41,700 Subordinated liabilities and other borrowed funds 2 38 102 83 130 406 1,003 6,411 8,175 Total liabilities 328,674 76,714 40,763 20,080 16,557 19,913 30,243 24,780 557,724 Net liquidity gap (153,020) 26,848 5,476 11,147 10,277 30,615 38,105 66,190 35,638 1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value through profit or loss, see Note 12 Financial instruments. 2 Loans and advances include reverse repurchase agreements and other similar secured lending of $77.4 billion. 3 Deposits by banks include repurchase agreements and other similar secured borrowing of $7.2 billion. 4 Customer accounts include repurchase agreements and other similar secured borrowing of $31.7 billion. 5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 64 ![]() 2024 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Assets Cash and balances at central banks 53,804 – – – – – – 2,861 56,665 Derivative 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 securities 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 subsidiary 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 Liabilities 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 Derivative 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 securities 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 liabilities 9,131 23,171 669 483 125 3,987 419 2,774 40,759 Subordinated liabilities and other borrowed funds 8 36 – 73 19 206 532 9,485 10,359 Total liabilities 305,974 72,467 37,073 19,494 15,896 24,237 27,495 26,782 529,418 Net liquidity gap (147,315) 36,282 11,547 5,751 8,474 24,308 29,516 65,553 34,116 1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value through profit or loss, see Note 12 Financial instruments. 2 Loans and advances include reverse repurchase agreements and other similar secured lending of $77.6 billion. 3 Deposits by banks include repurchase agreements and other similar secured borrowing of $8.4 billion. 4 Customer accounts include repurchase agreements and other similar secured borrowing of $34.7 billion. 5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 65 ![]() Company 2025 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Assets Cash and balances at central banks 51,364 – – – – – – 984 52,348 Derivative financial instruments 16,137 10,484 9,672 4,417 4,018 5,725 9,770 6,408 66,631 Loans and advances to banks 1,2 9,352 9,339 6,833 3,983 1,960 4,787 2,044 1,168 39,466 Loans and advances to customers 1,2 33,110 14,914 10,551 7,569 7,148 19,444 13,810 15,089 121,635 Investment securities 1 4,486 6,792 8,926 8,420 6,672 13,317 29,269 31,794 109,676 Investment in subsidiary undertaking – – – – – – – 10,800 10,800 Other assets 2,817 21,577 477 487 984 82 20 2,482 28,926 Due from subsidiary undertakings and other related parties 11,538 – – – – – – – 11,538 Total assets 128,804 63,106 36,459 24,876 20,782 43,355 54,913 68,725 441,020 Liabilities Deposits by banks 1,3 21,654 1,459 916 564 595 1,959 1,774 – 28,921 Customer accounts 1,4 128,972 16,263 11,066 3,205 4,417 4,181 1,275 582 169,961 Derivative financial instruments 16,873 13,160 8,990 4,680 3,304 5,376 9,869 5,304 67,556 Senior debt 5 795 1,340 1,226 1,127 1,505 3,480 5,767 5,857 21,097 Other debt securities in issue 1 2,815 3,010 8,846 5,455 3,253 1,581 6,630 1,723 33,313 Due to parent companies and other related undertakings 50,980 – – – – – – – 50,980 Other liabilities 5,706 19,011 767 541 115 1,197 1,595 1,168 30,100 Subordinated liabilities and other borrowed funds – 1 18 – 20 – – 8,119 8,158 Total liabilities 227,795 54,244 31,829 15,572 13,209 17,774 26,910 22,753 410,086 Net liquidity gap (98,991) 8,862 4,630 9,304 7,573 25,581 28,003 45,972 30,934 1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value through profit or loss, see Note 12 Financial instruments. 2 Loans and advances include reverse repurchase agreements and other similar secured lending of $68.7 billion. 3 Deposits by banks include repurchase agreements and other similar secured borrowing of $6.5 billion. 4 Customer accounts include repurchase agreements and other similar secured borrowing of $31.5 billion. 5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 66 ![]() 2024 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Assets Cash and balances at central banks 44,072 – – – – – – 1,161 45,233 Derivative 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 securities 1 3,726 7,620 7,679 3,010 5,953 15,370 23,346 36,449 103,153 Investment in subsidiary undertaking – – – – – – – 10,671 10,671 Other assets 7,595 15,370 652 234 359 33 51 2,781 27,075 Due from subsidiary 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 Liabilities 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 Derivative 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 securities 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 liabilities 9,648 16,332 648 432 92 3,888 321 – 31,361 Subordinated liabilities and other borrowed funds 8 36 – 73 19 206 514 8,945 9,801 Total liabilities 222,020 54,153 28,444 16,035 12,759 22,726 26,534 22,038 404,709 Net liquidity gap (94,830) 14,036 10,643 4,445 7,686 18,528 19,952 50,522 30,982 1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value through profit or loss, see Note 12 Financial instruments. 2 Loans and advances include reverse repurchase agreements and other similar secured lending of $72.6 billion. 3 Deposits by banks include repurchase agreements and other similar secured borrowing of $8.1 billion. 4 Customer accounts include repurchase agreements and other similar secured borrowing of $34.6 billion. 5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group. Behavioural maturity of financial assets and liabilities The cash flows presented in the previous section reflect the cash flows that will be contractually payable over the residual maturity of the instruments. However, contractual maturities do not necessarily reflect the timing of actual repayments or cash flow. In practice, certain assets and liabilities behave differently from their contractual terms, especially for short-term customer accounts, credit card balances and overdrafts, which extend to a longer period than their contractual maturity. On the other hand, mortgage balances tend to have a shorter repayment period than their contractual maturity date. Expected customer behaviour is assessed and managed on a country basis using qualitative and quantitative techniques, including analysis of observed customer behaviour over time. Maturity of financial liabilities on an undiscounted basis The following table analyses the contractual cash flows payable for the Group’s financial liabilities by remaining contractual maturities on an undiscounted basis (except for trading liabilities and derivatives not treated as hedging derivatives). The financial liability balances in the table below will not agree to the balances reported in the consolidated balance sheet as the table incorporates all contractual cash flows, on an undiscounted basis, relating to both principal and interest payments. Derivatives not treated as hedging derivatives are included in the ‘On demand’ time bucket and not by contractual maturity. Within the ‘More than five years and undated’ maturity band are undated financial liabilities, the majority of which relate to subordinated debt, on which interest payments are not included as this information would not be meaningful, given the instruments are undated. Interest payments on these instruments are included within the relevant maturities up to five years. #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 67 ![]() Group 2025 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Deposits by banks 26,210 1,976 1,350 704 626 2,094 2,258 4 35,222 Customer accounts 239,259 30,237 19,289 7,224 7,673 5,210 1,486 614 310,992 Derivative financial instruments 67,741 1 19 16 42 41 267 163 68,290 Debt securities in issue 3,709 4,629 10,394 6,966 5,009 6,139 14,691 8,933 60,470 Due to parent companies and other related undertakings 37,272 37,272 Subordinated liabilities and other borrowed funds 32 55 137 87 137 448 1,365 11,251 13,512 Other liabilities 6,697 26,888 848 546 162 1,349 1,800 4,000 42,290 Total liabilities 380,920 63,786 32,037 15,543 13,649 15,281 21,867 24,965 568,048 2024 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 Derivative financial instruments 81,886 23 26 8 3 74 247 310 82,577 Debt securities 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 liabilities and other borrowed funds 33 132 89 191 89 534 1,450 14,350 16,868 Other liabilities 10,019 23,101 659 464 125 3,925 419 2,981 41,693 Total liabilities 366,745 55,396 26,605 13,375 12,685 19,081 20,398 26,278 540,563 Company 2025 One month or less $million Between one month and three months $million Between three months and six months $million Between six months and nine months $million Between nine months and one year $million Between one year and two years $million Between two years and five years $million More than five years and undated $million Total $million Deposits by banks 21,711 1,468 920 574 605 1,979 1,774 – 29,031 Customer accounts 129,277 16,383 11,220 3,286 4,547 4,248 1,325 602 170,888 Derivative financial instruments 67,143 – 1 1 10 26 247 160 67,588 Debt securities in issue 3,666 4,399 10,195 6,684 4,879 5,522 13,124 7,982 56,451 Due to parent companies and other related undertakings 50,980 50,980 Subordinated liabilities and other borrowed funds 32 55 137 87 137 448 1,345 11,269 13,510 Other liabilities 4,303 19,276 744 539 114 1,197 1,595 3,298 31,066 Total liabilities 277,112 41,581 23,217 11,171 10,292 13,420 19,410 23,311 419,514 2024 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 Derivative financial instruments 82,072 23 25 8 3 68 237 309 82,745 Debt securities 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 liabilities and other borrowed funds – 132 41 191 92 138 1,619 14,121 16,334 Other liabilities 8,481 16,293 648 432 92 3,888 321 1,821 31,976 Total liabilities 280,238 36,990 18,142 10,004 9,509 17,058 18,993 24,113 415,047 #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 68 ![]() The following table provides the estimated impact to a hypothetical base case projection of the Group’s earnings under the following scenarios: • A 50 basis point parallel interest rate shock (up and down) to the current market-implied path of rates, across all yield curves. • A 100 basis point parallel interest rate shock (up and down) to the current market-implied path of rates, across all yield curves. These interest rate shock scenarios assume all other economic variables remain constant. The sensitivities shown represent the estimated change to a hypothetical base case projected net interest income (NII), plus the change in interest rate implied income and expense from FX swaps used to manage banking book currency positions, under the different interest rate shock scenarios. The base case projected NII is based on the current market- implied path of rates and forward rate expectations. The NII sensitivities below stress this base case by a further 50 or 100bps. Actual observed interest rate changes will likely differ from market expectation. Accordingly, the shocked NII sensitivity does not represent a forecast of the Group’s net interest income. The interest rate sensitivities are indicative stress tests and based on simplified scenarios, estimating the aggregate impact of an unanticipated, instantaneous parallel shock across all yield curves over a one-year horizon, including the time taken to implement changes to pricing before becoming effective. The assessment assumes that the size and mix of the balance sheet remain constant and that there are no specific management actions in response to the change in rates. No assumptions are made in relation to the impact on credit spreads in a changing rate environment. Significant modelling and behavioural assumptions are made regarding scenario simplification, market competition, pass-through rates, asset and liability re-pricing tenors, and price flooring. In particular, the assumption that interest rates of all currencies and maturities shift by the same amount concurrently, and that no actions are taken to mitigate the impacts arising from this are considered unlikely. Reported sensitivities will vary over time due to a number of factors including changes in balance sheet composition, market conditions, customer behaviour and risk management strategy. Therefore, while the NII sensitivities are a relevant measure of the Group’s interest rate exposure, they should not be considered an income or profit forecast. Net interest income sensitivity (audited) Estimated one-year impact to earnings from a parallel shift in yield curves at the beginning of the period of: 2025 USD bloc $million SGD bloc $million EUR bloc $million Other currency bloc $million Total $million + 50 basis points 10 10 10 90 120 - 50 basis points (20) (10) (10) (90) (130) + 100 basis points 10 30 20 180 240 - 100 basis points (30) (30) (30) (180) (270) 2024 + 50 basis points 20 10 10 80 120 - 50 basis points (20) (20) (10) (90) (140) + 100 basis points 30 20 20 150 220 - 100 basis points (50) (40) (20) (170) (280) As at 31 December 2025, the Group estimates the one-year impact of an instantaneous, parallel increase across all yield curves of 50 basis points to increase projected NII by $120 million. The equivalent impact from a parallel decrease of 50 basis points would result in a reduction in projected NII of $130 million. The Group estimates the one-year impact of an instantaneous, parallel increase across all yield curves of 100 basis points to increase projected NII by $240 million. The equivalent impact from a parallel decrease of 100 basis points would result in a reduction in projected NII of $270 million. The benefit from rising interest rates is primarily from reinvesting at higher yields and from assets re-pricing faster and to a greater extent than deposits. ## Interest Rate Risk in the Banking Book #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 69 ![]() Operational and Technology Risk Operational and Technology Risk profile The Group follows PLC Group in terms of monitoring and managing our Operational and Technology risks. Details of these can be found on page 229 of the PLC Group’s 2025 Annual Report. Operational Risk events and losses Operational losses are one indicator of the effectiveness and robustness of our non-financial risk and control environment. The Group’s profile of operational loss events in 2025 and 2024 is summarised in the table below, which shows the distribution of gross operational losses by Basel business line. In 2025, Payments and Settlements is higher due to high value payment related events and Retail Banking due to prior period adjustments. Distribution of Operational Losses by Basel business line 2 % Loss 2025 2024¹ Agency Services 12.4 0.0 Asset Management 0.0 0.0 Commercial Banking 7.0 1.7 Corporate Finance 0.0 0.0 Corporate Items 11.3 82.5 Payment and Settlements 40.4 8.7 Retail Banking 22.2 4.1 Retail Brokerage 0.0 0.0 Trading and Sales 6.7 3.0 1 Losses in 2024 have been restated to include incremental events recognised in 2025. 2 Operational losses for 2024 and 2025 are based on data as at 5 January 2026. The Group’s profile of operational loss events in 2025 and 2024 is also summarised by Basel event type in the table below. It shows the distribution of gross operational losses by Basel event type. Distribution of Operational Losses by Basel event type 2 % Loss 2025 2024¹ Business disruption and system failures 2.5 0.8 Client products and business practices 1.5 1.3 Damage to physical assets 0.0 0.0 Employment practices and workplace safety 0.0 0.1 Execution delivery and process management 78.2 95.7 External fraud 9.8 1.7 Internal fraud 8.0 0.4 1 Losses in 2024 have been restated to include incremental events recognisedin 2025. 2 Operational losses for 2024 and 2025 are based on data as at 5 January2026. Other principal risks The losses arising from operational failures for other principal and integrated risks are reported as operational losses. Operational losses do not include operational risk-related credit impairments. ## Operational and Technology Risk #### Risk review and Capital review Directors’ Report and Financial Statements 2025 | Standard Chartered 70 ![]() #### 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 subsidiaries. Standard Chartered Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA). Capital requirements are set by the PRA for Standard Chartered Bank on a solo consolidation basis. The solo- consolidated group differs from Standard Chartered Bank(Company) in that it includes the full consolidation offour subsidiaries, namely Standard Chartered Holdings (International) B.V., Standard Chartered Grindlays PTY Limited, SCMB Overseas Limited and Corrasi Covered BondsLLP. The Group continues to operate through its branches andvarious subsidiaries, all of which remain well-capitalised in accordance with their applicable risk appetites andapplicable regulatory requirements. The Group’s CET1 capital ratio remains stable at 13.3 per cent as of 31 December 2025 with a leverage ratio of 4.8 per cent. The Group maintains high levels of loss absorbing capacity. RWAs increased by $6.6 billion to $175.8 billion. CET1 capital increased by $0.9 billion to $23.4 billion, driven primarily by profits of $3.4 billion and the foreign currency translation impact of$0.5 billion. These increases were partially offset bydistributions of $2.7 billion and higher regulatory deductionsof $0.3 billion (largely from intangible assets). Capital ratios 2025 2024 CET1 13.3% 13.3% Tier 1 capital 16.7% 16.8% Total capital 21.5% 23.0% ## Capital review #### Risk review and Capital review Capital base 1 (audited) 2025 $million 2024 $million 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 10,090 10,215 Accumulated other comprehensive income (and other reserves) (6,065) (6,939) Non-controlling interests (amount allowed in consolidated CET1) 198 178 Independently audited year-end profits 3,377 2,953 Foreseeable dividends (192) (193) CET1 capital before regulatory adjustments 28,301 27,107 CET1 regulatory adjustments Additional value adjustments (prudential valuation adjustments) (532) (426) Intangible assets (net of related tax liability) (4,014) (3,675) Deferred tax assets that rely on future profitability (excludes those arising from temporary differences) (15) (30) Fair value reserves related to net losses on cash flow hedges (135) (8) Deduction of amounts resulting from the calculation of excess expected loss (364) (417) Net gains on liabilities at fair value resulting from changes in own credit risk 308 246 Defined-benefit pension fund assets (99) (115) Fair value gains arising from the institution’s own credit risk related to derivative liabilities (65) (91) Exposure amounts which could qualify for risk weighting of 1250% (21) (116) Total regulatory adjustments to CET1 (4,937) (4,632) CET1 capital 23,364 22,475 Additional Tier 1 capital (AT1) instruments 2 5,959 5,917 AT1 regulatory adjustments (20) (20) Tier 1 capital 29,303 28,372 Tier 2 capital instruments 8,498 10,583 Tier 2 regulatory adjustments (30) (30) Tier 2 capital 8,468 10,553 Total capital 37,771 38,925 Total risk-weighted assets (unaudited) 175,845 169,223 1 Capital base is prepared on the regulatory scope of consolidation. 2 Includes Instrument issued by subsidiaries that are given recognition in AT1 Capital. Leverage ratio Capital and total exposures 2025 $million 2024 $million Tier 1 capital 29,303 28,372 Total leverage ratio exposures 613,113 559,409 Leverage ratio 4.8% 5.1% Directors’ Report and Financial Statements 2025 | Standard Chartered 71 ![]() Independent Auditor’s report to the ## members of Standard Chartered Bank Opinion In our opinion: • 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 2025 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 Financial Reporting 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 financial statements of Standard Chartered Bank (the ‘Company’ or the ‘Parent Company’) and its subsidiaries, interests in associates, and jointly controlled entities (together with the Company—the ‘Group’) for the year ended 31 December 2025 which comprise: Group Company Consolidated income statement for the year ended 31 December 2025; Balance sheet as at 31 December 2025; 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 2025; 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 39 to the financial statements, including: material accounting policy information. Consolidated cash flow statement for the year then ended; Risk review and Capital review disclosures marked as ‘audited’ from page 23 to page 71. Related notes 1 to 39 to the financial statements, including: material accounting policy information; Risk review and Capital review disclosures marked as ‘audited’ from page 23 to page 71. The financial reporting 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 applied in accordance with section 408 of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of thefinancial statements section of our report. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion. Independence We are independent of the Group and the Company in accordance with the ethical requirements that are relevant toour audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by the FRC’s Ethical 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 auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting inthe preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group and the Parent Company’s ability to continue to adopt the going concern basis of accounting included: • performing a risk assessment to identify factors that could impact the going concern basis of accounting, including consideration of principal and emerging risks; • assessing management’s going concern assessment, including the Group’s forecast capital, liquidity and leverage ratios over the period of twelve months from 24 February 2026, to evaluate the headroom against minimum regulatory requirements and the risk appetite set by the directors; • engaging EY economic specialists to assess and challenge the reasonableness of assumptions used to develop the forecasts in the Corporate Plan (5-year forward looking plan of the business) and evaluating the accuracy of historical forecasting; • assessing the Group’s funding plan and repayment plan for funding instruments maturing over the period of twelve months from 24 February 2026; • understanding and evaluating credit rating agency ratings; Directors’ Report and Financial Statements 2025 | Standard Chartered 72 ![]() • engaging EY prudential regulatory specialists to evaluate the results of management’s stress testing on funding, liquidity, and regulatory capital; • reviewing correspondence with prudential regulators and authorities for matters that may impact the going concern assessment; and • evaluating the going concern disclosure included innote1to the financial statements to assess that thedisclosure was appropriate and in conformity withthereporting standards. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Company’s ability to continue as a going concern for a period of twelve months from 24 February 2026. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group’s and the Parent Company’s ability to continue as a going concern. #### Independent Auditor’s Report to the members of Standard Chartered Bank Overview of our audit approach Audit scope We performed an audit of the complete financial information of 6 components in 5 countries and audit procedures on specific balances for a further 5 components in 4 countries. We performed central procedures for certain audit areas and balances as outlined in Tailoring the scope section of our report. Key audit matters Credit impairment Impairment of investments in subsidiary undertakings Valuation of financial instruments held at fair value with higher risk characteristics. Materiality Overall Group materiality of $258m which represents 5% of Adjusted Profit before Tax. An overview of the scope of the Parent Company and Group audits Tailoring 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 sufficient appropriate audit evidence on which to base our audit opinion. We performed risk assessment procedures, with input from our component auditors, to identify and assess risks of material misstatement of the Group financial statements and identified significant accounts and disclosures. When identifying components atwhich audit work needed to be performed to respond tothe identified risks of material misstatement of the Group financial statements, we considered our understanding oftheGroup and its business environment, the applicable financial framework, the Group’s system of internal control atthe entity level, the existence of centralised processes, theIT application environment, and any relevant internal audit results. We took a centralised approach to auditing certain processes and controls, as well as the substantive testing of specific balances. This included audit work over the Group’s Global Business Services shared services centre (SSC), Corporate and Investment Banking SSC, Credit Impairment SSC and Global 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, including: Revenue recognition; Management override of controls; Technology costs; Impairment of goodwill; Going concern and long-term viability; Hedge accounting; Climate risk; Share based payments; Taxation; Legal and regulatory matters; Centralised reconciliations; Onerous contracts, including impairment of leased properties; IT matters; and certain transformation programmes. In addition to the above areas, for select components in Germany, Japan, Saudi Arabia and Cote D’Ivoire, the primary audit engagement team (“the Primary Audit Team”) performed certain procedures centrally over the cash balances as at 31 December 2025. These components are separate to those described below. We identified 11 components in 9 countries as individually relevant to the Group due a significant risk or an area of higher assessed risk of material misstatement of the Group financial statements being associated with the components, or due to financial size of the component relative totheGroup. For those individually relevant components, we identified the significant accounts where audit work needed to be performed at these components by applying professional judgement, having considered the Group significant accounts on which centralised procedures are performed, the reasons for identifying the financial reporting component as an individually relevant component and the size of the component’s account balance relative to the Group significant financial statement account balance. We then considered whether the remaining group significant account balances that are not subject to audit procedures, in aggregate, could give rise to a risk of material misstatement of the Group financial statements. We did not identify additional scope required as we assessed the residual risk tonot be material. Directors’ Report and Financial Statements 2025 | Standard Chartered 73 ![]() Having identified the components for which work will beperformed, we determined the scope to assign to eachcomponent. Of the 11 components selected, we designed and performed audit procedures on the entire financial information of 6 components (“full scope components”). For 5 components, we designed and performed audit procedures on specific significant financial statement account balances or disclosures of the financial information of the component (“specific scope components”). Group’s Absolute PBT Group’s Total assets Group’s Absolute Operating Income 2025 2024 2025 2024 2025 2024 Full scope components 54% 54% 83% 84% 63% 61% Specific scope components 15% 11% 4% 4% 12% 10% Specified procedures 0% 3% 0% 0.50% 0% 3% Total 68% 68% 87% 89% 75% 74% Of the remaining components that together represent 32% of the Group’s absolute PBT, none are individually greater than 4.5%. For certain of these components, we performed other procedures at the Group level which included: performing analytical reviews at the Group financial statement level, evaluating entity level controls, performing audit procedures on the centralised shared service centres, testing of consolidation journals and intercompany eliminations, inquiring with certain overseas EY teams on the outcome ofprior year local statutory audits (where audited by EY) toidentify any potential risks of material misstatement totheGroup financial statements. We also had regard forthe extent of centralised procedures in respect of key audit matters. Involvement with component teams In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the components by us, the Primary Audit Team, or by component auditors from other firms operating under our instruction. All of the direct components of the Group (full or specific scope) were audited by EY global network firms. Audit procedures were performed on 2 full scope components (including the audit 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 direction and supervision of the Senior Statutory Auditor. For the remaining 9 components, where the work was performed by component auditors, we determined the appropriate level of involvement to enable us to determine that sufficient and appropriate audit evidence had been obtained as a basis for our opinion on the Group as a whole. In addition to the above, the Primary Audit Team also performed full-scope audit procedures on components related to the Group consolidation process. In addition, the Group has centralised processes and controls over key areas in its shared service centres. Members of the Primary Audit Team undertook direct oversight, review and coordination of our shared service centre audits. The Primary Audit Team continued to follow a programme f planned visitsto component teams and shared service centres. Duringthe current year’s audit cycle, visits were undertaken by the Primary Audit Team to the component teams in the following locations: • India (including the shared services centre) • Malaysia (including the shared services centre) • Singapore (including the shared services centre) • United Arab Emirates • United States of America • Kenya These visits involved discussing the audit approach with the component team and any issues arising from their work, meeting with local management, attending planning and closing meetings, and reviewing relevant audit working papers on risk areas. In addition to the site visits, the Primary 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 was responsible for the scope and direction of the audit process. The Primary Audit Team also undertook video conference meetings with component and SSC audit teams and management. These virtual meetings involved discussing the audit approach and any issues arising from their work, as well as performing remote reviews of key audit workpapers. This, together with the procedures performed at the Group level, gave us sufficient and appropriate evidence for our opinion on the Group and Company financial statements. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 74 ![]() Climate change Stakeholders are increasingly interested in how climate change will impact economy, including the banking sector, and further how this may consequently impact the valuation of assets and liabilities held on bank balance sheets. TheGroup manages climate risk according to the characteristics of the impacted principal risk types. Theassessment of that risk by the Group is explained onpage 29 in the ‘Risk profile’ section, and in the Strategic Report on pages 9-10 and 14-15, where management has alsoexplained their climate commitments. All of these disclosures form part of the ‘Other information’, rather than the audited financial statements. Our procedures on these unaudited disclosures therefore consisted solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in line with our responsibilities on ‘Other information’. 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 financial statements. The Group has explained in the Strategic Report how they have reflected the impact of climate change in their financial statements, including how this aligns with their commitment to the aspirations of the Paris Agreement to achieve net zero emissions by 2050. Significant judgements and estimates relating to climate change are included in the section ‘Climate change impact on the Group’s balance sheet’ ofnote 1 to the financial 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liabilities. Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating whether management’s assessment of the impact of climate risk has been appropriately reflected in the valuation of assets and liabilities, where material and where it can be reliably measured, following the currently effective requirements of UK IAS and EU IFRS. This was in the context of the Group’s process being limited, given that this is a highly evolving area, as a result of limitations in the data available and the nascent modelling capabilities, and as the Group considers how it further embeds its climate ambitions into the planning process. As part of this evaluation, we performed our own risk assessment, supported by our climate change specialists, to determine the risks of material misstatement in the financial statements from climate change which needed to be considered in our audit. We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability, and the associated disclosures. Where considerations of climate 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 financial statements to impact certain key audit matters. Details of our procedures and findings 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 significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters. Risk Our response to the risk Credit Impairment Refer to Note 8 of the financial statements; and relevant credit risk disclosures (including pages 30 - 59) At 31 December 2025, the Group reported a credit impairment balance sheet provision of $3,090 million (2024: $3,204 million), and an income statement charge of $248 million (2024: $15 million). Determining expected credit losses is highly judgemental and subjective as a result of the significant uncertainty associated with the estimation of expected future credit losses. Assumptions with increased complexity in respect ofthe timing and measurement of expected credit losses (ECL) include: We evaluated the adequacy of the design of the Group’s controls over material ECL balances. Operating effectivenesswas tested for controls upon which weintended to place reliance. We performed an overall stand-back assessment of the ECL allowance in total and by stage. We considered the overall level of economic uncertainty, credit quality of the Group’s portfolios, the impact of sovereign risk, and the uncertainty owing to the US trade and tariff policy. We performed peer benchmarking to the extent that this was considered relevant and investigated and sought explanations for any areas identified as being outliers. Our assessment also included the evaluation of the macroeconomic environment by considering trends in the economies and countries to which the Group is exposed. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 75 ![]() Risk Our response to the risk Staging – The determination of what constitutes a significant increase in credit risk and default and consequent complete and timely allocation of qualifying assets to the appropriate stage in accordance with IFRS 9. Modelled output – Appropriateness of accounting interpretations, modelling assumptions, modelling techniques and the data used to determine the Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) used to calculate the ECL. Multiple economic scenarios – The determination of the appropriateness of economic variables, the future forecasting of these variables and the approach to determine both the base case forecast and the Monte Carlo Simulation. The assessment of non-linearity produced by the Monte Carlo simulation, the benchmarking of the output tothe discrete scenarios and the evaluation of the need for anyoverlays. Management overlays and post-model adjustments – Appropriateness, completeness and valuation of risk event overlays to capture risks not identified by the credit impairment models, including the consideration of the risk of management override. Individually assessed ECL allowances – Measurement of individual provisions including the assessment of probability weighted recovery scenarios, existence and valuation of collateral, and expected future cashflows. In 2025, the most material factors impacting the ECL weregeopolitical uncertainty, the impact of the US tariffs, and the idiosyncratic risks at a sovereign and sector level. Inaddition, we considered the impact of climate as part ofimpairment provisioning. Overall, economic uncertainty remains elevated with a consequent increased risk to the downside and therefore in line with the prior year there continues to be an elevated risk of a material misstatement to ECL. Staging – We evaluated the criteria used to allocate financial assets within the scope of IFRS 9 to stage 1, 2 or 3. We reperformed the staging distribution for all relevant financial assets. We performed sensitivity analysis to assess the impact of changes to the quantitative thresholds on the EAD and ECL. We reperformed the Group’s staging effectiveness and investigated any differences or anomalies. To test the completeness of the identification of significant increase in credit risk, we challenged the credit risk ratings (including appropriate operation of quantitative backstops) for a sample of performing accounts and other accounts exhibiting risk characteristics such as financial difficulty, deferment of payment, late payment and heightened risk accounts appearing on the watchlist. Modelled output – With the support of EY credit risk modelling specialists, we performed a risk assessment over the models used in the ECL calculation using independently determined quantitative and qualitative criteria, and applied this risk rating to select a sample of models to test. For the selected models, we assessed the reasonableness of underlying assumptions, methodology and model build. This included evaluating model design and formulae, model implementation and validation, model monitoring, sensitivity testing and independently recalculating the Probability of Default, Loss Given Default and Exposure at Default parameters for a sample of higher risk models. 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. We sample tested material data adjustments to the modelled output. Economic scenarios – In collaboration with our economic specialists, we challenged the completeness and appropriateness of the macroeconomic variables used as inputs to the ECL models. Our economic specialists assisted in evaluating the reasonableness of the base forecast for a sample of macroeconomic variables most pertinent to the Group’s ECL calculation. Procedures performed included benchmarking the forecast for a sample of macroeconomic variables to peers, historical data analysis and examination of a variety of global external sources. We assessed the appropriateness of the output of the Monte Carlo simulation by performing a sensitivity test across a sample of economic variables, spanning multiple markets, using an independent challenger model. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 76 ![]() Risk Our response to the risk We assessed the reasonableness of the non-linearity produced by the Monte Carlo simulation and the appropriateness of management’s overlay. Our economists, assessed and challenged the Group’s choice of discrete scenarios to benchmark the output from the Monte Carlo model and determine the sensitivity analysis as set out on pages 55 to 58 in the annual report. This challenge included the choice of discrete scenarios, the weights applied to each scenario and the quantum of the non-linearity overlay. We also performed a stand-back assessment by benchmarking the uplift and overall ECL charge and provision coverage topeers. Management overlays and post model adjustments – Wechallenged the completeness and appropriateness ofoverlays used for risks not captured by the models, andevaluated the outcome of model monitoring procedures that highlighted model deficiencies including the need forpost model adjustments. We focused our challenge onidiosyncratic risks at a sector and sovereign level, including the impact of climate, and the results of model monitoring procedures. Our procedures included assessing the need for management overlays and post model adjustments, evaluating the assumptions and judgments used to determine these taking current market conditions into account, and computing independent ranges whereappropriate. Individually assessed ECL allowances – We selected a sample of individually assessed provisions and challenged management’s level of provisioning by performing recalculation procedures. These procedures included challenging management’s forward looking economic assumptions, the appropriateness of the recovery outcomes, cashflow profiles and timings, and the individual probability weightings used for each scenario. We also engaged our valuation specialists to independently assess the value of collateral used in management’s calculations on a sample basis. In conjunction with our technical accounting experts, we considered the appropriateness of the accounting treatment applied for material loan restructurings. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 77 ![]() . Risk Our response to the risk Impairment assessment of investments in subsidiary undertakings Refer to Note 31 of the financial statements. In the Parent Company financial statements as at 31 December 2025, the investment in subsidiary undertakings balance was $10,800 million (2024: $10,671 million). On an annual basis, management is required to perform an assessment for indicators of impairment in respect of investments in subsidiary undertakings. Where indicators of impairment are identified, the recoverable amount of the investment should be estimated. The Group identified indicators of impairment of investments in subsidiary undertakings, including macroeconomic and geopolitical factors which have an impact on the financial position and performance of the subsidiaries. In assessing for indicators of impairment, among other procedures, management compares the Net Asset Value (‘NAV’) of the subsidiary to the carrying value of each direct subsidiary of the Parent Company. Where the net assets do not support the carrying value, the recoverable amount is estimated by determining the higher of value in use (VIU) or fair value less cost to sell. 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 impairment of investments insubsidiary undertakings for compliance with accountingstandards. We compared the NAV of the subsidiaries to their carrying value to consider whether any impairment or reversal of impairment recognised in the Parent Company financial results was reasonable. Where the NAV did not support thecarrying value, we obtained the VIU models toassesswhether this was a reasonable basis for therecoverable amount. We performed the following procedures on the VIU models: • Agreed the material inputs in the VIU models totheirsource and tested the mathematical accuracyofthe models. • Engaged EY specialists to assess the reasonableness of the regulatory capital haircut adjustment to future profitability forecasts and to calculate an independent range for assumptions underlying the VIU calculations, such as the discount rate and long-term growth rate. Key observations communicated totheAuditCommittee How we scoped our audit to respond to the riskand involvement with component teams We communicated that the Group ECL provisions were reasonably estimated and materially in compliance with IFRS 9. We highlighted the following matters to the Audit Committee that contributed to our overall conclusion: • Our evaluation of the appropriateness of the significant increase in credit risk triggers, and the results of our staging reperformance. • Our assessment of the appropriateness of the Group’s models to generate the ECL including the appropriateness and validity of the data used in the models. • Our evaluation of the completeness and appropriateness of economic variables, the choice of discrete scenarios, the weightings applied to these scenarios, and the outcome of our challenger model. • Our assessment of the appropriateness of post model adjustments and overlays, including idiosyncratic overlays relating to sectors, climate and non-linearity. • For individually assessed ECL allowances, the overall reasonableness of the provisions, including assumptions applied, and collateral valuations. We continued to highlight to the Committee that there remains increased uncertainty and volatility in determining expected credit losses due to the elevated risks in the macroeconomic and geopolitical landscape. For the purposes of determining the scope of work to be conducted centrally and by component teams, we considered the following: • The Group’s gross exposure and ECL by market • The Group’s and EY’s independent sovereign risk assessment • Market of origin for individual defaulted exposures • The Group’s material IFRS 9 systems and processes, including modelled ECL, and where those systems and process were located Based on this assessment, we determined that specific credit related procedures were required to be performed centrally and by 5 full scope and 4 specified scope locations. 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. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 78 ![]() Risk Our response to the risk Where the recoverable amount is based on the VIU, this is modelled by reference to future cashflow forecasts (profit forecasts including 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 underpinning the impairment assessments are inappropriate, then the investments in subsidiaries balances may be misstated. The level of risk remains consistent with the prior year. • Reconciled the future profitability forecasts used in the models to the Standard Chartered PLC Group’s Board approved Corporate Plan (‘the Plan’). We challenged the reasonableness of the forecasts through back testing to historical performance and evaluating underlying business strategies. We engaged EY specialists to determine the reasonableness of the forward macroeconomic inputs used in the Plan. • We assessed the appropriateness of disclosures for impairment of investments in subsidiary undertakings in accordance with IAS 36. #### Independent Auditor’s Report to the members of Standard Chartered Bank Risk Our response to the risk Valuation of financial instruments held at fair value withhigher risk characteristics (Level 3 and certain Level2portfolios) Refer to Notes 12 and 13 to the financial statements. At 31 December 2025, the Group reported financial assets measured at fair value of $257,567 million (2024: $245,417 million), and financial liabilities at fair value of $133,791 million (2024: 145,506 million), of which financial assets of $7,246 million (2024: $5,288 million) and financial liabilities of $2,005 million (2024: $2,016 million) are classified as Level 3 in the fair value hierarchy. The fair value of financial instruments with higher risk characteristics involves the use of management judgement in the selection of valuation models and techniques, pricinginputs and assumptions and fair value adjustments. Ahigher level of estimation uncertainty is involved for financial instruments valued using complex models; pricinginputs that have limited observability; and fair value adjustments, including the Credit Valuation Adjustments forilliquid counterparties. We evaluated the design and operating effectiveness ofcontrols relating to the valuation of financial instruments, including independent price verification, model validation and approval, fair value adjustments, and significant dealreview. Among other procedures, we engaged our valuation specialists to assist 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 derivative financial instruments (including those embedded within customer accounts, debt securities in issue, and deposits by banks) to assess the appropriateness of models and the adequacy of assumptions and inputs used by the Group; Key observations communicated to the Audit Committee How we scoped our audit to respond to the risk and involvement with component teams Investments in subsidiary undertakings balance reported inthe Parent Company financial statements and the associated disclosures, are not materially misstated asat31 December 2025. All audit work performed to address this risk was materially undertaken centrally by the Group Audit Team. Directors’ Report and Financial Statements 2025 | Standard Chartered 79 ![]() Risk Our response to the risk We considered the following portfolios presented a higher level of estimation uncertainty: • Derivatives: Level 3 and certain Level 2 derivatives (including those embedded within customer accounts, debt securities 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 similar secured lending, anddebtsecurities and other eligible bills with unobservable pricing inputs. The level of risk remains consistent with the prior year. • Test valuations of other Level 3 financial instruments with higher estimation uncertainty, such as equity shares, loans and advances to customers, reverse repurchase agreements and other similar secured lending, and debt securities and other eligible bills. Where appropriate, we compared management’s valuation to our own independently developed range; • Assessed the appropriateness and observability of pricing inputs as part of the IPV process and recognition of day 1 P&L; 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 determining illiquid credit spreads. Where differences between our independent valuation and management’s valuation were outside our thresholds, we performed additional testing to assess the impact on the valuation of financial instruments. Throughout our audit procedures we considered the continuing uncertainty arising from the current macroeconomic environment. In addition, we assessed whether there were any indicators of aggregate bias in financial instrument marking and methodology assumptions. We also assessed management’s disclosures regarding fair value measurement. Key observations communicated to the Audit Committee How we scoped our audit to respond to the risk and involvement with component teams We concluded that assumptions used by management to estimate the fair value of financial instruments with higher risk characteristics, and the recognition of related income, were reasonable. We highlighted the following matters to the Audit Committee: • We did not identify material differences arising from ourindependent testing of valuations dependent oncomplex models; • The fair values of other Level 3 financial instruments, valued using pricing inputs with limited observability, were not materially misstated as at 31 December 2025 based on our independent calculations; and • Valuation adjustments, including Credit Valuation Adjustments for illiquid counterparties, were appropriate, based on our analysis of market data and benchmarking of pricing information. We performed centralised audit procedures over this risk. These procedures were performed by the Primary Team and CIB SSC, covering over 98% of the risk amount. The key audit matters remain consistent from prior year. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 80 ![]() Our application of materiality We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and in forming our audit opinion. Materiality The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures. We determined materiality for the Group to be $258 million (2024: $252 million), which is 5% (2024: 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 the most appropriate and relevant measure for the users of the financial statements, given the Group is profit-making, it is consistent with the wider industry, and it is the standard for listed and regulated entities. This increase from prior year is driven by an increase in our materiality basis of adjusted profit before tax and is reflected in all materiality thresholds discussed below. We determined materiality for the Parent Company to be $179 million (2024: $164 million), which is 5% (2024: 5%) of adjusted profit before tax. We believe that adjusted profit before tax provides us with the most relevant and appropriate measure for the users of the financial statements, given the Company is profit making, it is consistent with the wider industry, and it is the standard for regulated entities. Starting basis • Reported profit before tax – $4,724m Adjustments • Non-recurring items– $433m Materiality • Adjusted profit before tax – $5,157m • Materiality of $258m (5% of adjusted profit before tax) During the course of our audit, we reassessed initial materiality. This assessment resulted in a higher final materiality calculated based on the actual financial performance of the Group for the year. There were no changes to the basis for materiality from the planning stage. Performance materiality The application of materiality at the individual accountorbalance level. It is set at an amount to reduce toan appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality. On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was that performance materiality was 50% (2024: 50%) of our planning materiality, namely $129m (2024: $126m). We have set performance materiality at this percentage due to a variety of risk factors such as the expectation of misstatements, internal control environment considerations and other factors such as the global complexity 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 financial statements. The performance materiality 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 materiality allocated to components was $19m to $28m (2024: $16m to $31m). Reporting threshold An amount below which identified misstatements are considered as being clearly trivial. We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of $13m (2024: $13m), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative considerations in forming our opinion. Other information The other information comprises the information included in the Annual Report set out on pages 1 to 206, including the Strategic report (pages 1 to 15), the Directors’ report (pages 16 to 21), the Statement of directors’ responsibilities (page 22) and the information not marked as ‘audited’ in the Risk review and Capital review section (pages 23 to 71), and the Supplementary information (pages 201 to 206), other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 81 Opinions on other matters prescribed by the Companies Act 2006 In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial 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 identified material 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 opinion: • adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or • the Parent Company financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit. Responsibilities of directors As explained more fully in the directors’ responsibilities statement set out on page 22, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. 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, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non- compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk 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 intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most significant are those that relate to the reporting 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, including but not limited to regulations 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 jurisdictions in which the Group operates. In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements and those laws and regulations relating to regulatory capital and liquidity, conduct, financial crime including anti-money laundering, sanctions and market abuse recognising the financial and regulated nature of the Group’s activities. • We understood how the Group is complying with those frameworks by performing a combination of inquiries of senior management and those charged with governance as required by auditing standards, review of board and certain committee meeting minutes, gaining an understanding of the Group’s approach to governance, inspection of regulatory correspondence in the year and engaging with internal and external legal counsel. We also engaged EY financial crime and forensics specialists to perform procedures on areas relating to anti-money laundering, whistleblowing, and sanctions compliance. Through these procedures, we became aware of actual or suspected non-compliance. The identified actual or suspected non-compliance was not sufficiently significant to our audit that would have resulted in it being identified as a key audit matter. #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 82 • We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur by considering the controls that the Group has established to address risks identified by the entity, or that otherwise seek to prevent, deter or detect fraud. Our procedures to address the risks identified also included incorporation of unpredictability into the nature, timing and/or extent of our testing, challenging assumptions and judgements made by management in their significant accounting estimates and journal entry testing. • Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved inquiries 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, including journal entry testing. We also performed inspection of key correspondence from the relevant regulatory authorities 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 communicated by management to the Group audit engagement team and component teams (where applicable) who performed audit procedures such as inquiries with management, sending confirmations to external legal counsel, substantive testing and meeting with regulators. Where appropriate, we involved specialists 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 activities. 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 capabilities, which included the use of specialists where appropriate. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report. Other matters we are required to address • Following the recommendation from the audit committee, we were re-appointed by the Company on 8 May 2025 to audit the financial statements for the year ending 31 December 2025 and subsequent financial periods. • The period of total uninterrupted engagement including previous renewals and reappointments is six years, covering the years ending 31 December 2020 to 31 December 2025. • The audit opinion is consistent with the additional report to the audit 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 responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Micha Missakian Senior statutory auditor for and on behalf of Ernst & Young LLP, Statutory Auditor London 24 February 2026 #### Independent Auditor’s Report to the members of Standard Chartered Bank Directors’ Report and Financial Statements 2025 | Standard Chartered 83 ![]() | | | | | | --- | --- | --- | --- | | | | 2025 | 2024 | | | Notes | $million | $million | | Interest income | | 16,888 | 19,310 | | Interest expense | | (13,173) | (14,910) | | Net interest income | 3 | 3,715 | 4,400 | | Fees and commission income | | 3,957 | 3,486 | | Fees and commission expense | | (1,031) | (824) | | Net fee and commission income | 4 | 2,926 | 2,662 | | Net trading income | 5 | 6,185 | 5,530 | | Other operating income | 6 | 128 | (178) | | Operating income | | 12,954 | 12,414 | | Staff costs | | (6,773) | (6,417) | | Premises costs | | (267) | (254) | | General administrative expenses | | (194) | (223) | | Depreciation and amortisation | | (721) | (656) | | Operating expenses | 7 | (7,955) | (7,550) | | Operating profit before impairment losses and taxation | | 4,999 | 4,864 | | Credit impairment | 8 | (248) | (15) | | Goodwill, property, plant and equipment and other impairment | 9 | (29) | (410) | | Profit from associates and joint ventures | | 2 | 8 | | Profit before taxation | | 4,724 | 4,447 | | Taxation | 10 | (1,314) | (1,465) | | Profit for the year | | 3,410 | 2,982 | | Profit attributable to: | | | | | Non-controlling interests | 28 | 34 | 39 | | Parent company shareholders | | 3,376 | 2,943 | | Profit for the year | | 3,410 | 2,982 | The notes on pages 91 to 200 form an integral part of these financial statements. #### Financial statements #### Consolidated income statement For the year ended 31 December 2025 Directors’ Report and Financial Statements 2025 | Standard Chartered 84 ![]() | | | | | | --- | --- | --- | --- | | | | 2025 | 2024 | | | Notes | $million | $million | | Profit for the year | | 3,410 | 2,982 | | Other comprehensive income/(loss) | | | | | Items that will not be reclassified to income statement: | | (45) | (198) | | Own credit losses on financial liabilities designated at fair value through profit or loss | | (62) | (319) | | Equity instruments at fair value through other comprehensive income | | 61 | (6) | | Actuarial (loss)/gain on retirement benefit obligations | 29 | (41) | 26 | | Revaluation (deficit)/surplus | | (3) | 9 | | Taxation relating to components of other comprehensive loss | 10 | – | 92 | | Items that may be reclassified subsequently to income statement: | | 953 | (278) | | Exchange differences on translation of foreign operations: | | | | | Net gains/(losses) taken to equity | | 450 | (663) | | Net gains on net investment hedges | 13 | 75 | 44 | | Share of other comprehensive loss from associates and joint ventures | | – | (5) | | Debt instruments at fair value through other comprehensive income | | | | | Net valuation gains taken to equity | | 276 | 216 | | Reclassified to income statement | 6 | 27 | 172 | | Net impact of expected credit loss | | 17 | (36) | | Cash flow hedges: | | | | | Net movements in cash flow hedge reserve | 13 | 150 | 32 | | Taxation relating to components of other comprehensive income/(loss) | 10 | (42) | (38) | | Other comprehensive income/(loss) for the year, net of taxation | | 908 | (476) | | Total comprehensive income for the year | | 4,318 | 2,506 | | Total comprehensive income attributable to: | | | | | Non-controlling interests | 28 | 66 | 22 | | Parent company shareholders | | 4,252 | 2,484 | | Total comprehensive income for the year | | 4,318 | 2,506 | #### Financial statements #### Consolidated statement of comprehensive income For the year ended 31 December 2025 Directors’ Report and Financial Statements 2025 | Standard Chartered 85 ![]() | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Group | | Company | | | | | 2025 | 2024 | 2025 | 2024 | | | Notes | $million | $million | $million | $million | | Assets | | | | | | | Cash and balances at central banks | 12,34 | 64,943 | 56,665 | 52,348 | 45,233 | | Financial assets held at fair value through profit or loss | 12 | 121,078 | 103,624 | 99,894 | 88,349 | | Derivative financial instruments | 12,13 | 66,479 | 82,717 | 66,631 | 82,844 | | Loans and advances to banks | 12,14 | 24,771 | 22,941 | 11,108 | 11,755 | | Loans and advances to customers | 12,14 | 159,254 | 158,242 | 80,091 | 77,597 | | Investment securities | 12 | 103,921 | 96,442 | 79,684 | 82,101 | | Other assets | 19 | 38,158 | 28,478 | 23,568 | 21,552 | | Due from subsidiary undertakings and other related parties | | 5,234 | 5,222 | 11,538 | 10,066 | | Current tax assets | 10 | 549 | 644 | 412 | 516 | | Prepayments and accrued income | | 2,038 | 2,197 | 1,392 | 1,535 | | Interests in associates and joint ventures | | 75 | 75 | – | – | | Investments in subsidiary undertakings | 31 | – | – | 10,800 | 10,671 | | Goodwill and intangible assets | 16 | 4,111 | 3,774 | 2,245 | 1,988 | | Property, plant and equipment | 17 | 1,303 | 1,144 | 714 | 659 | | Deferred tax assets | 10 | 387 | 350 | 251 | 233 | | Retirement benefit schemes in surplus | | 104 | 118 | 104 | 118 | | Assets classified as held for sale | 20 | 957 | 901 | 240 | 474 | | Total assets | | 593,362 | 563,534 | 441,020 | 435,691 | | Liabilities | | | | | | | Deposits by banks | 12 | 25,758 | 22,409 | 20,607 | 17,824 | | Customer accounts | 12 | 270,058 | 239,204 | 132,018 | 119,502 | | Repurchase agreements and other similar secured borrowing | 12,15 | 5,186 | 9,921 | 4,828 | 9,845 | | Financial liabilities held at fair value through profit or loss | 12 | 65,571 | 62,929 | 64,880 | 61,683 | | Derivative financial instruments | 12,13 | 68,220 | 82,577 | 67,556 | 82,745 | | Debt securities in issue | 12,21 | 43,577 | 39,864 | 37,849 | 36,081 | | Other liabilities | 22 | 26,813 | 27,767 | 19,421 | 21,486 | | Due to parent companies, subsidiary undertakings & other related parties | | 37,272 | 28,246 | 50,980 | 42,313 | | Current tax liabilities | 10 | 517 | 559 | 254 | 294 | | Accruals and deferred income | | 4,581 | 4,265 | 2,620 | 2,441 | | Subordinated liabilities and other borrowed funds | 12,26 | 8,175 | 10,359 | 8,158 | 9,801 | | Deferred tax liabilities | 10 | 523 | 427 | 358 | 308 | | Provisions for liabilities and charges | 23 | 247 | 261 | 191 | 186 | | Retirement benefit schemes in deficit | | 312 | 249 | 216 | 200 | | Liabilities included in disposal groups held for sale | 20 | 914 | 381 | 150 | – | | Total liabilities | | 557,724 | 529,418 | 410,086 | 404,709 | | Equity | | | | | | | Share capital and share premium account | 27 | 21,643 | 21,643 | 21,643 | 21,643 | | Other reserves | | (6,065) | (6,939) | (3,666) | (3,804) | | Retained earnings | | 13,744 | 13,226 | 7,235 | 7,421 | | Total parent company shareholders’ equity | | 29,322 | 27,930 | 25,212 | 25,260 | | Other equity instruments | 27 | 5,722 | 5,722 | 5,722 | 5,722 | | Total equity excluding non-controlling interests | | 35,044 | 33,652 | 30,934 | 30,982 | | Non-controlling interests | 28 | 594 | 464 | – | – | | Total equity | | 35,638 | 34,116 | 30,934 | 30,982 | | Total equity and liabilities | | 593,362 | 563,534 | 441,020 | 435,691 | The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its individual statement of comprehensive income and related notes that form a part of these financial statements. The Company profit forthe year after tax is $2,517 million (2024: Profit after tax $2,325 million). The notes on pages 91 to 200 form an integral part of these financial statements These financial statements were approved by the Court of Directors and authorised for issue on 24 February 2026 and signed on its behalf by: Bill Winters, Director #### Financial statements #### Balance sheets As at 31 December 2025 Directors’ Report and Financial Statements 2025 | Standard Chartered 86 ![]() | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Ordinary | Preference | | | | | | | | | | | | | | share | share | | | Fair value | Fair value | | | | | | | | | | capital | capital | Capital | | through other | through other | | | | Parent | | | | | | andshare | and share | and | Own credit | comprehensive | comprehensive | Cash flow | | | company | | Non- | | | | premium | premium | merger | adjustment | income reserve | income reserve | hedge | Translation | Retained | shareholders’ | Other equity | controlling | | | | account | account | reserves 1 | reserve | – debt | – equity | reserve | reserve | earnings | equity instruments | | interests | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | As at 01 January 2024 | 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) 8 | 21 | (609) | 187 2,9 | (459) | – | (17) | (476) | | Distributions | – | – | – | – | – | – | – | – | – | – | – | (125) | (125) | | Other equity instruments | | | | | | | | | | | | | | | issued, net ofexpenses | – | – | – | – | – | – | – | – | – | – | 980 | – | 980 | | Share option expense, net | | | | | | | | | | | | | | | oftaxation | – | – | – | – | – | – | – | – | 205 | 205 | – | – | 205 | | Dividends on ordinary | | | | | | | | | | | | | | | shares | – | – | – | – | – | – | – | – | (2,395) | (2,395) | – | – | (2,395) | | Dividends on preference | | | | | | | | | | | | | | | shares and AT1 securities | – | – | – | – | – | – | – | – | (349) | (349) | – | – | (349) | | Deemed distribution | | | | | | | | | | | | | | | toparent 3 | – | – | – | – | – | – | – | – | (226) | (226) | – | – | (226) | | Other movements | – | – | – | (1) | 7 | – | – | 210 4 | (127) 5 | 89 | – | (513) 6 | (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 | | Profit for the year | – | – | – | – | – | – | – | – | 3,376 | 3,376 | – | 34 | 3,410 | | Other comprehensive | | | | | | | | | | | | | | | (loss)/income 7 | – | – | – | (62) | 301 | (1) 8 | 127 | 493 | 18 2,9 | 876 | – | 32 | 908 | | Distributions | – | – | – | – | – | – | – | – | – | – | – | (98) | (98) | | Share option expense, net | | | | | | | | | | | | | | | oftaxation | – | – | – | – | – | – | – | – | 200 | 200 | – | – | 200 | | Dividends on ordinary | | | | | | | | | | | | | | | shares | – | – | – | – | – | – | – | – | (2,276) | (2,276) | – | – | (2,276) | | Dividends on preference | | | | | | | | | | | | | | | shares and AT1 securities | – | – | – | – | – | – | – | – | (389) | (389) | – | – | (389) | | Deemed distribution | | | | | | | | | | | | | | | toparent 3 | – | – | – | – | – | – | – | – | (276) | (276) | – | – | (276) | | Other movements | – | – | – | – | (27) | – | – | 43 4 | (135) 10 | (119) | – | 162 6 | 43 | | As at 31 December 2025 | 20,893 | 750 | 40 | (308) | 91 | 100 | 135 | (6,123) | 13,744 | 29,322 | 5,722 | 594 | 35,638 | 1 Includes capital reserve of $35 million (31 December 2024: $35 million) and capital redemption reserve of $5 million (31 December 2024: $5 million). 2 Includes actuarial (loss)/gain, net of taxation on Group defined benefit schemes. 3 Relates to deemed capital contribution arising from share-based payment net of taxation of $276 million (31 December 2024: $226 million). 4 2025 movement mainly includes realisation of translation adjustment loss from sale of Standard Chartered Bank Gambia Limited ($8 million) and Standard Chartered Cameroon ($9 million) transferred to other operating income. 2024 movement includes realisation of translation adjustment loss from sale of SCB Zimbabwe Limited ($190 million), SCB Angola S.A. ($31 million), SCB Sierra Leone Limited ($25 million) transferred to other operating income. 5 Mainly includes movements related to Ghana hyperinflation. 6 Movement are primarily from non-controlling interest (refer note 28). 7 All the amounts are net of tax. 8 Includes $65 million (31 December 2024: $8 million) mark-to-market gain on equity instruments (net of tax), $57 million (31 December 2024: $174 million) relating to transfer of gain on sale of equity investment to retained earnings and reversal of deferred tax liability $9 million (31 December 2024: $76 million reversal of deferred tax asset). For movement in deferred tax refer Note 10. 9 Includes $57 million (2024: $174 million) gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings partly offset by $9 million (2024: $13 million) capital gain tax. 10 Includes $154 million recognised upon redemption of preference AT1 shares at their issue price. Those shares, issued by a subsidiary (Standard Chartered Bank Singapore Limited), were recognised against non-controlling interest and their carrying amount had been reduced below their issue price upon dividend payments made in prior period. Note 27 includes a description of each reserve. The notes on pages 91 to 200 form an integral part of these financial statements #### Financial statements #### Consolidated statement of changes in equity For the year ended 31 December 2025 Directors’ Report and Financial Statements 2025 | Standard Chartered 87 ![]() | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Group | | Company | | | | | 2025 | 2024 | 2025 | 2024 | | | Notes | $million | $million | $million | $million | | Cash flows from operating activities: | | | | | | | Profit before taxation | | 4,724 | 4,447 | 3,245 | 3,058 | | Adjustments for non-cash items and other adjustments | | | | | | | included within income statement | 33 | 397 | 1,107 | (429) | (1) | | Change in operating assets | 33 | (7,631) | (34,790) | 273 | (26,161) | | Change in operating liabilities | 33 | 27,822 | 25,731 | 11,452 | 13,864 | | Contributions to defined benefit schemes | 29 | (77) | (48) | (46) | (39) | | UK and overseas taxes paid | 10 | (1,282) | (1,422) | (711) | (720) | | Net cash from/(used in) operating activities | | 23,953 | (4,975) | 13,784 | (9,999) | | Cash flows from investing activities: | | | | | | | Internally generated Capitalised Software | 16 | (715) | (479) | (521) | (246) | | Purchase of property, plant and equipment | 17 | (225) | (224) | (149) | (176) | | Disposal of property, plant and equipment | 17 | 17 | 13 | 3 | 15 | | Acquisition of investment in subsidiaries, associates, and joint ventures | | – | (1) | – | – | | Dividends received from subsidiaries, associates and joint | | | | | | | ventures | 33 | 2 | 6 | 1,260 | 1,052 | | Disposal of investment in subsidiaries, associates and joint | | | | | | | ventures 1 | | 48 | 51 | – | 26 | | Disposal of held for sale property, plant and equipment | | 126 | – | – | – | | Purchase of investment securities | | (128,640) | (131,058) | (68,809) | (84,630) | | Disposal and maturity of investment securities | | 124,353 | 132,861 | 72,962 | 91,907 | | Net cash (used in)/from investing activities | | (5,034) | 1,169 | 4,746 | 7,948 | | Cash flows from financing activities: | | | | | | | Premises and equipment lease liability principal payment | | (90) | (97) | (42) | (43) | | Issue of Additional Tier 1 capital, net of expenses | 27 | – | 980 | – | 980 | | Interest paid on subordinated liabilities | 33 | (551) | (569) | (492) | (528) | | Repayment of subordinated liabilities | 33 | (2,705) | (1,000) | (2,173) | (1,000) | | Proceeds from issue of senior debts | 33 | 2,500 | 3,134 | 2,455 | 3,114 | | Repayment of senior debts | 33 | (4,001) | (2,480) | (3,986) | (2,471) | | Interest paid on senior debts | 33 | (376) | (282) | (374) | (282) | | Net cash inflow from non-controlling interests | 28 | 8 | (506) | – | – | | Distributions and Dividends paid to non-controlling interests, preference shareholders and AT1 securities | | (487) | (474) | (389) | (349) | | Dividends paid to ordinary shareholders | | (2,276) | (2,395) | (2,276) | (2,395) | | Net cash used in financing activities | | (7,978) | (3,689) | (7,277) | (2,974) | | Net increase/(decrease) in cash and cash equivalents | | 10,941 | (7,495) | 11,253 | (5,025) | | Cash and cash equivalents at beginning of the year | | 78,949 | 88,360 | 48,101 | 53,988 | | Effect of exchange rate movements on cash and cash | | | | | | | equivalents | | 2,471 | (1,916) | (64) | (862) | | Cash and cash equivalents at end of the year | 34 | 92,361 | 78,949 | 59,290 | 48,101 | 1 2025 includes disposal of Standard Chartered Bank Cameroon S.A. ($ 29 million), Standard Chartered Tanzania Nominees Limited - WRB business ($13 million), Standard Chartered Bank Gambia Limited ($6 million). 2024 balance includes disposal of SCB Zimbabwe Limited ($24 million), SCB Angola S.A. ($10 million) and SCB Sierra Leone Limited ($17 million). For Bank Group, interest received was $15,885 million (31 December 2024: $19,638 million), interest paid was $12,639 million (31 December 2024: $15,035 million). For Bank Company, interest received was $11,945 million (31 December 2024: $13,579million), interest paid was $9,986 million (31 December 2024: $11,596 million). #### Financial statements #### Cash flow statement For the year ended 31 December 2025 Directors’ Report and Financial Statements 2025 | Standard Chartered 88 ![]() Ordinary share capital and share premium account $million Preference share capital and share premium account $million Capital and merger reserves 1 $million Own credit adjustment reserve $million Fair value through other comprehensive income reserve – debt $million Fair value through other comprehensive income reserve – equity $million Cash flow hedge reserve $million Translation reserve $million Retained earnings $million Parent company shareholders’ equity $million Other equity instruments $million Total $million At 1 January 2024 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) 194 2 (164) – (164) Other equity instruments issued, net ofexpenses – – – – – – – – – – 980 980 share option expense, net oftaxation – – – – – – – – 127 127 – 127 Dividends on ordinary shares – – – – – – – – (2,395) (2,395) – (2,395) Dividends on preference share and AT1 securities – – – – – – – – (349) (349) – (349) Deemed distribution toparent 3 – – – – – – – – (144) (144) – (144) Other Movements – – – (1) 7 – – (49) (8) (51) – (51) At 31 December 2024 20,893 750 40 (243) (401) 131 (17) (3,314) 7,421 25,260 5,722 30,982 Profit forthe year – – – – – – – – 2,517 2,517 – 2,517 Other comprehensive (loss)/income 4 – – (64) 295 (7) 54 (140) 18 2 156 – 156 share option expense, net oftaxation – – – – – – – – 135 135 – 135 Dividends on ordinary shares – – – – – – – – (2,276) (2,276) – (2,276) Dividends on preference share and AT1 securities – – – – – – – – (389) (389) – (389) Deemed distribution toparent 3 – – – – – – – – (191) (191) – (191) Other Movements – – – – – – – – – – – – At 31 December 2025 20,893 750 40 (307) (106) 124 37 (3,454) 7,235 25,212 5,722 30,934 1 Includes capital reserve of $35 million (31 December 2024: $35 million) and capital redemption reserve of $5 million (31 December 2024: $5 million). 2 Includes actuarial (loss)/gain, net of taxation on Group defined benefit schemes. 3 Relates to deemed capital contribution arising from share-based payment net of taxation of $191 million (31 December 2024: $144 million). 4 All amounts are net of tax. Note 27 includes a description of each reserve. The notes on pages 91 to 200 form an integral part of these financial statements #### Financial statements #### Company statement of changes in equity For the year ended 31 December 2025 Directors’ Report and Financial Statements 2025 | Standard Chartered 89 ![]() Section Note Page Basis of preparation 1 Accounting policies 91 Performance/return 2 Segmental information 95 3 Net interest income 96 4 Net fees and commission 97 5 Net trading income 99 6 Other operating income 99 7 Operating expenses 100 8 Credit impairment 101 9 Goodwill, fixed assets and other impairment 105 10 Taxation 106 11 Dividends 111 Assets and liabilities held at fair value 12 Financial instruments 112 13 Derivative financial instruments 143 Financial instruments held at amortised cost 14 Loans and advances to banks and customers 154 15 Reverse repurchase and repurchase agreements including othersimilarlending and borrowing 154 Other assets and investments 16 Goodwill and intangible assets 156 17 Property, plant and equipment 159 18 Leased assets 161 19 Other assets 162 20 Assets held for sale and associated liabilities 162 Funding, accruals, provisions, contingent liabilities and legal proceedings 21 Debt securities in issue 163 22 Other liabilities 164 23 Provisions for liabilities and charges 165 24 Contingent liabilities and commitments 165 25 Legal and regulatory matters 166 Capital instruments, equity and reserves 26 Subordinated liabilities and other borrowed funds 167 27 Share capital, other equity instruments and reserves 168 28 Non-controlling interests 170 Employee benefits 29 Retirement benefit obligations 171 30 Share-based payments 178 Scope of consolidation 31 Investments in subsidiary undertakings, joint ventures and associates 184 32 Structured entities 185 Cash flow statement 33 Cash flow statement 187 34 Cash and cash equivalents 188 Other disclosure matters 35 Related party transactions 189 36 Auditor’s remuneration 192 37 Remuneration of directors 192 38 Post balance sheet events 193 39 Related undertakings of the Group 194 #### Financial statements #### Contents – Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 90 ![]() 1. Accounting policies Statement of compliance The Group financial statements consolidate Standard Chartered Bank (the Company) and its subsidiaries (together referred to as the Group) and equity account the Group’s interests in associates and jointly controlled entities. The parent company financial statements present information about the Company as a separate entity. The Group financial statements have been prepared in accordance with UK- adopted international accounting standards and International Financial Reporting Standards (IFRS) (Accounting Standards) as adopted by the European Union (EU IFRS), as there are no applicable differences for the periods presented. The Company financial statements have been prepared in accordance with UK-adopted international accounting standards as applied in conformity with section 408 of the Companies Act 2006. The financial statements have been prepared in accordance with the requirements of the Companies Act 2006. The following parts of the Risk review and Capital review form part of these financial statements: a Risk review: Disclosures from the start of Risk profile section (page 30) to the end of other principal risks in the same section (page 70) excluding: • Liquidity coverage ratio (LCR), (page 63) • Stressed coverage, (page 63) • Net stable funding ratio (NSFR), (page 63) • Liquidity pool, (page 63) • Interest Rate Risk in the Banking Book, (page 69) • Operational risk, (page 70) • Other principal risks, (page 70) b Capital review: from the start of ‘Capital Requirements Directive (CRD) capital base’ to the end of ‘movement in total capital’, excluding capital ratios and risk-weighted assets (RWA) Basis of preparation The consolidated and Company financial statements have been prepared on a going concern basis and under the historical cost convention, as modified by the revaluation of cash-settled share-based payments, fair value through other comprehensive income, and financial assets and liabilities (including derivatives) at fair value through profit or loss. The consolidated financial 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 million dollars, except when otherwise indicated. Re-presentation of segmental information During the period there has been a change in respect to the classification of income attributable to geographic markets which have been re-presented to ensure recognition is in line with transfer pricing principles for services performed including origination, structuring, booking, and risk management. This is necessary to align the presentation of the disclosure of client segments in line with the Regulatory News Service filing (RNS) on Re-Presentation of Financial Information issued on 2 April 2025. Prior period amounts have been re-presented in line with the current year basis of preparation to align with the information reviewed by the Chief Operating Decision Maker. Where the re-representation has impacted disclosure, it is included within the footnotes in the following sections and tables: • Risk review: Credit impairment charge (audited) • Note 2 Segmental information • Note 4 Net fees and commission Significant and other accounting estimates and judgements In determining the carrying amounts of certain assets and liabilities, the Group makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The Group’s estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. Further information about key assumptions concerning the future, and other key sources of estimation uncertainty and judgement, are set out in the relevant disclosure notes for the areas set out under the relevant headings below: #### Financial statements #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 91 ![]() 1. Accounting policies continued Significant accounting estimates and critical judgements Significant accounting estimates and judgements represent those items which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year. Significant accounting estimates and judgements are: • Expected credit loss calculations (Note 8) • Financial instruments measured at fair value (Note 12) Macroeconomic and geopolitical uncertainty is already embedded in the estimate of forward-looking cash flows that affect the estimate of Expected credit loss calculations and impact the recoverability of certain assets, including of goodwill, deferred tax assets and investments in subsidiary undertakings. Other areas of accounting estimate and judgement Other areas of accounting estimate and judgement do not meet the definition under IAS 1 of significant accounting estimates or critical accounting judgements, but the recognition of certain material assets and liabilities are based on assumptions and/or are subject to long-term uncertainties. The other areas of accounting estimate and judgement are: • Taxation (Note 10) • Goodwill and intangible assets-Goodwill impairment and capitalisation of internally generated software intangibles (Note 9 and Note 16) • Provisions for liabilities and charges – Other provisions (Note 23) • Legal and regulatory matters – (Note 25) • Retirement benefit obligations (Note 29) • Share-based payments (Note 30) • Investments in subsidiary undertakings (Note 31) Climate 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 liabilities. The PLC Group has assessed the impact of climate risk on the financial report. This is set out within the non-financial and sustainability information statement and the Sustainability Review in the PLC Annual Report, which incorporate the PLC Group’s climate-related disclosures which align with the recommendations from the Task Force for Climate related Financial Disclosures (TCFD) and Hong Kong Listing Requirements. Further risk disclosures have been provided in the Principal Risks and Uncertainties section of the Annual Report where the PLC Group has described how it manages climate risk, which manifests through the PLC Group’s business and operations and impact the relevant Principal Risk Types (PRTs). This 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 within 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 recoverability of certain assets, including of goodwill, deferred tax assets and investments in subsidiary undertakings. However, these did not result in any material change to this year’s balance sheet or income statement. Transition risk, as our clients move to lower carbon emitting revenues, (either by virtue of legislation, technological advancement, or changing end customer preference) is considered with reference to client transition pathways and manifests 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 covers our 12 highest emitting sectors, manages transition risk. Net zero targets, climate risk questionnaires which are used to assess clients for transition risks and the credibility of their transition plan (CTP) enable the portfolio managers to work with our clients on their transition and deploy capital to those clients which are engaged and have adequate transition pathways. All of these actions manage the Group’s transition risk and engage clients before transition risk manifests itself into credit losses. We have also evaluated transition risk to achieve net zero in our own operations. We use scenario analysis to evaluate how various Transition Risk scenarios impact Loan Impairment intensities. These scenarios consider climate transition costs including the impact of rising carbon prices, technology investment costs, and changes in carbon intensities. While physical risk is included within the majority of our mortgage lending decisions, we have also applied 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 residential mortgages to identify properties that are expected to become uninhabitable and/or unusable due to increased frequency and intensity of physical risk events from acute and chronic risks. We evaluate the physical risk vulnerabilities of our existing sites, both existing and new on a periodic basis. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 92 ![]() #### Notes to the financial statements 1. Accounting policies continued Across 2025 we focussed on sites hosting important business services, especially those vulnerable to extreme Physical Risks, to strengthen resilience, and have initiated an evaluation of Physical Risk vulnerabilities at our primary supplier’s delivery sites to proactively address potential business disruptions. Additionally, we assess the impact of climate risk on the classification of financial 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 quantitative assessment of the impact of climate risk on the IFRS 9 ECL provision. This assessment was 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 internal climate risk models for six Corporate priority sectors (Oil and Gas, Power, Steel, Mining, Shipping, and Automotive), one Generic Carbon Elasticity Model (CEM) for the remaining Corporate sectors, an enhanced Sovereign Climate Probability of Default (PD) model, newly developed Project Finance (PF) and Shipping Finance (SF) PD models, and Retail Mortgages Loss Given Default (LGD) models (for top four countries). The top-down approach is used for the remaining portfolios without internal climate risk models. The impact assessment, resulted in only an immaterial ECL increase across CIB and WRB for the PLC Group, which has been recorded as a management overlay for the 2025 year end. The Group’s corporate plan has a five-year outlook and considers the highest emitting sectors the Group finances. The majority of the PLC Group sector targets are production/physical intensities which allow continued levels of lending as long as the products the client produce have a decreasing carbon cost. For Coal Mining and Oil and Gas, these sectors have absolute targets which represent a decreasing carbon budget. Coal Mining is an immaterial book, whilst for oil and gas lending is being actively monitored on a portfolio basis 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 recoverability models. The Group has for the fourth time in the 2026 corporate plan included anticipated credit impairment charges, now across eleven NZ sectors (Aviation, Auto, Power, Oil and Gas, Commercial Real Estate, Cement, Agriculture, Shipping, Aluminium, Steel and Coal). This addition of credit impairment has not in itself, materially impacted the recoverability of Group assets supported by discounted cash flow models (such as Value in Use) which utilise the corporate plan. The PLC Group has progressively strengthened its scenario analysis capabilities with the modelling of Climate Risk impact over a 30-year period across multiple dimensions including scenario data and pathways across CIB and WRB portfolios. While we have taken the first step in our journey to transition from our reliance on vendor models to in-house capabilities, challenges underpin the scenario analysis, such as reliance on nascent methodologies, dependencies on first generation models and data limitations. Notwithstanding these challenges, our work to date, using certain assumptions and proxies, indicates that our business is resilient to all Network of Central Banks and Supervisors for Greening the Financial System (NGFS) scenarios that were explored. The Group, although acknowledging the limitations of current data available, increasing sophistication of models evolving and nascent nature of climate impacts on internal and client assets, considers Climate Risk to have limited quantitative impact in the immediate term, and as a longer-term risk is expected to be addressed through its business strategy and financial planning as the Group implements its net zero journey. In reaching this conclusion, the Group also leverages assessments performed at PLC Group level and the extent to which the results impact the Group. New accounting standards in issue but not yet effective There were no new accounting standards or interpretations that had a material effect on the Group’s Financial Statements in 2025. IFRS 18 Presentation and Disclosure in Financial Statements The new standard IFRS 18 was issued in April 2024 and is effective for annual reporting periods beginning on or after January 1, 2027 but earlier application is permitted. This new standard replaces IAS 1 Presentation of Financial Statements and amends IAS 7 Statement of Cash Flows. IFRS 18 introduces three defined categories for income and expenses—operating, investing and financing – to improve the structure of the income statement, and requires all companies to provide new defined subtotals, including operating profit. IFRS 18 will require disclosure of explanations of company-specific 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 information and whether to provide it in the primary financial statements or in the notes. The Group will apply IFRS 18 for annual reporting periods beginning on January 1, 2027 and whilst the Group assessment remains ongoing, it is currently not expected to have a material impact on the Group’s financial statements other than a change in the presentation of the primary statements. Directors’ Report and Financial Statements 2025 | Standard Chartered 93 ![]() 1. Accounting policies continued IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments which amended requirements related to settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics of financial assets, including those with 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 financial instruments with contingent features that do not relate directly to basic lending risks and costs. The amendments will be effective for annual reporting periods beginning on or after 1 January 2026. The amendments are not expected to have a material impact on the Group’s financial statements . Going concern These financial statements were approved by the Court of directors on 24 February 2026. The directors have made an assessment of the Group’s ability to continue as a going concern. This assessment has been made having considered the current macroeconomic and geopolitical headwinds, including: • A review of the Group Strategy and Corporate plan, including the annual budget • An assessment of the actual performance to date, loan book quality, credit impairment, legal and regulatory matters, compliance matters, and recent regulatory developments. • Consideration of stress testing performed, including the Solo Recovery Plan (RP) which includes the application of stressed scenarios. Under the tests and through the range of scenarios, the results of these exercises and the RP demonstrate that the Group has sufficient capital and liquidity to continue as a going concern and meet minimum regulatory capital and liquidity requirements • Analysis of the capital position, including the Solo capital and leverage ratios, and ICAAP which summarises the Solo capital and risk assessment processes, assesses its capital requirements and the adequacy of resources to meet them. • Analysis of the funding and liquidity position of Solo, including the Internal Liquidity Adequacy Assessment Process (ILAAP), which considers the Solo and Group’s liquidity position, its framework and whether sufficient liquidity resources are being maintained to meet liabilities as they fall due. Further, funding and liquidity was considered in the context of the risk appetite metrics, including the Solo LCR ratio. • The level of debt in issue, including redemptions and issuances during the year, debt falling due for repayment in the next 12 months and further planned debt issuances, including the appetite in the market for the Group’s debt • The portfolio of debt securities held at amortised cost • A detailed review of all principal and emerging risks Based on the analysis performed, the directors confirm they are satisfied that the Group has adequate resources to continue in business for a period of at least 12 months from 24 February 2026. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the financial statements. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 94 ![]() #### Notes to the financial statements 2. Segmental information Basis of preparation 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. The analysis reflects the location in which the transaction or balance was booked. Disclosures have been re-presented as explained in Note 1 ‘Re-presentation of segmental information’. The effect of the change has impacted the classification of cost and income across client segments. Client segments Comparatives have been re-presented in line with the PLC Group’s RNS on representation of financial information issued on 2 April 2025 to align with the information reviewed by the Chief Operating Decision Maker. Profit before tax (PBT) by client segment | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | 2024 1 | | | | | Corporate & | Wealth & | | | | Corporate & | Wealth & | | | | | | Investment | Retail | | Central & | | Investment | Retail | | Central & | | | | Banking | Banking | Ventures 1 | other items | Total | Banking | Banking | Ventures | other items | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Operating income | 9,230 | 4,046 | 102 | (424) | 12,954 | 8,837 | 4,052 | 86 | (561) | 12,414 | | External | 7,507 | 2,217 | 103 | 3,127 | 12,954 | 6,697 | 2,390 | 87 | 3,240 | 12,414 | | Inter-segment | 1,723 | 1,829 | (1) | (3,551) | – | 2,140 | 1,662 | (1) | (3,801) | – | | Operating | | | | | | | | | | | | expenses | (5,083) | (2,557) | (114) | (201) | (7,955) | (4,872) | (2,426) | (133) | (119) | (7,550) | | Operating profit | | | | | | | | | | | | before impairment | | | | | | | | | | | | losses and taxation | 4,147 | 1,489 | (12) | (625) | 4,999 | 3,965 | 1,626 | (47) | (680) | 4,864 | | Credit impairment | 97 | (299) | (33) | (13) | (248) | 286 | (260) | (25) | (16) | (15) | | Other impairment | (5) | (5) | – | (19) | (29) | (195) | (72) | (8) | (135) | (410) | | Profit from associates | | | | | | | | | | | | and joint ventures | – | – | – | 2 | 2 | – | – | – | 8 | 8 | | Profit/(loss) | | | | | | | | | | | | before taxation | 4,239 | 1,185 | (45) | (655) | 4,724 | 4,056 | 1,294 | (80) | (823) | 4,447 | | Total assets | 386,876 | 55,357 | 3,486 | 147,643 | 593,362 | 375,902 | 49,161 | 3,088 | 135,383 | 563,534 | | Total liabilities | 504,576 | 92,169 | 3,178 | (42,199) | 557,724 | 478,637 | 78,966 | 2,821 | (31,006) | 529,418 | 1 Segment results have been re-presented in line with the PLC Group’s RNS on Re-Presentation of Financial Information issued on 2 April 2025. Operating income by client segment | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | 2024 1 | | | | | Corporate & | Wealth & | | | | Corporate & | Wealth & | | | | | | Investment | Retail | | Central & | | Investment | Retail | | Central & | | | | Banking | Banking | Ventures 1 | other items | Total | Banking | Banking | Ventures | other items | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Net interest income | 1,724 | 2,301 | 78 | (388) | 3,715 | 2,378 | 2,404 | 52 | (434) | 4,400 | | Net fees and commission | | | | | | | | | | | | income | 1,724 | 1,210 | 23 | (31) | 2,926 | 1,658 | 1,012 | 21 | (29) | 2,662 | | Net trading and other income | 5,782 | 535 | 1 | (5) | 6,313 | 4,801 | 636 | 13 | (98) | 5,352 | | Operating income | 9,230 | 4,046 | 102 | (424) | 12,954 | 8,837 | 4,052 | 86 | (561) | 12,414 | 1 Segment results have been re-presented in line with the PLC Group’s RNS on Re-Presentation of Financial Information issued on 2 April 2025. Reported operating income by geography 1 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | Singapore | India | UAE | UK | US | Others | Total | | | $million | $million | $million | $million | $million | $million | $million | | 2025 | 3,046 | 1,521 | 1,191 | 1,512 | 1,256 | 4,428 | 12,954 | | 2024 | 2,813 | 1,539 | 1,234 | 1,560 | 974 | 4,294 | 12,414 | 1 Reported operating income by geography is based on the revenues attributed to all foreign countries in total from which the Group derives revenues. Directors’ Report and Financial Statements 2025 | Standard Chartered 95 ![]() 3. Net interest income Accounting policy Interest income for financial assets held at either fair value through other comprehensive income or amortised cost, and interest expense on all financial liabilities held at amortised 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 financial asset or financial liability. When calculating the effective interest rate, the Group estimates cash flows considering 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 financial instruments, periodic re-estimation 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 financial asset or liability is adjusted to reflect the actual and revised cash flows, discounted at the instruments original effective interest rate. The adjustment is recognised as interest income or expense in the period in which the revision is made as long as the change in estimates is not due to credit issues. Interest income for financial assets that are either held at fair value through other comprehensive income or amortised cost that have become credit-impaired subsequent to initial recognition (stage 3) and have had amounts written 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 financial asset including expected credit losses. Should the credit risk on a stage 3 financial asset improve such that the financial asset is no longer considered credit-impaired, interest income recognition reverts to a computation based on the rehabilitated gross carrying value of the financial asset. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Balances at central banks | 2,105 | 2,500 | | Loans and advances to banks | 1,175 | 1,296 | | Loans and advances to customers | 9,002 | 10,436 | | Debt securities | 3,517 | 3,718 | | Other eligible bills | 1,009 | 1,254 | | Accrued on impaired assets (discount unwind) | 80 | 106 | | Interest income | 16,888 | 19,310 | | Of which: financial instruments held at fair value through other comprehensive income | 2,955 | 2,892 | | Deposits by banks | 702 | 728 | | Customer accounts | 10,358 | 11,896 | | Debt securities in issue | 1,582 | 1,653 | | Subordinated liabilities and other borrowed funds | 485 | 597 | | Interest expense on IFRS 16 lease liabilities | 46 | 36 | | Interest expense | 13,173 | 14,910 | | Net interest income | 3,715 | 4,400 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 96 ![]() 4. Net fees and commission Accounting policy The Group can act as trustee or in other Fiduciary capacities that result in the holding or placing of assets on behalf of individuals, trusts, retirement benefit plans and other institutions. The assets and income arising thereon are excluded from these financial statements, as they are not assets and income of the Group. The Group applies the following practical expedients: • information on amounts of transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations 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 consideration is not adjusted for the effects of a significant financing component as the period between the Group providing a service and the customer paying for it is expected to be less than one year • incremental costs of obtaining a fee-earning contract are recognised upfront in ‘Fees and commission expense’ rather than amortised, if the expected term of the contract is less than one year The determination of the services 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 considerations on income recognition 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 significant 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. Syndication fees are recognised when the syndication is complete defined as achieving the final approved hold position. Fees are generally received before completion of the syndication, or within 12 months of the transaction date. Securities services include custody services, fund accounting and administration, 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. Wealth Management Upfront consideration on bancassurance agreements is amortised straight-line over the contractual term. Commissions for bancassurance activities are recorded as they are earned through sales of third-party insurance products to customers. These commissions are received within a short time frame of the commission being 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 specified date after achievement of a target has been confirmed. Upfront and trailing commissions for managed investment placements are recorded as they are confirmed. Income from these activities is relatively even throughout the period, and cash is usually received within a short time frame after the commission 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 recognition 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 fulfilling the reward at the time of redemption. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 97 ![]() 4. Net fees and commission continued | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Fees and commissions income | 3,957 | 3,486 | | Of which: | | | | Financial instruments that are not fair valued through profit or loss | 1,276 | 1,162 | | Trust and other fiduciary activities | 353 | 278 | | Fees and commissions expense | (1,031) | (824) | | Of which: | | | | Financial instruments that are not fair valued through profit or loss | (286) | (156) | | Trust and other fiduciary activities | (23) | (12) | | Net fees and commission | 2,926 | 2,662 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | 2024 1 | | | | | Corporate & | Wealth & | | | | Corporate & | Wealth & | | | | | | Investment | Retail | | Central & | | Investment | Retail | | Central & | | | | Banking | Banking | Ventures 1 | other items | Total | Banking | Banking | Ventures | other items | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Transaction | | | | | | | | | | | | Services | 1,379 | – | – | – | 1,379 | 1,274 | – | – | – | 1,274 | | Payments & | | | | | | | | | | | | Liquidity | 656 | – | – | – | 656 | 657 | – | – | – | 657 | | Securities & | | | | | | | | | | | | Prime Services | 212 | – | – | – | 212 | 141 | – | – | – | 141 | | Trade & Working | | | | | | | | | | | | Capital | 511 | – | – | – | 511 | 476 | – | – | – | 476 | | Global Banking | 1,007 | – | – | – | 1,007 | 876 | – | – | – | 876 | | Lending & | | | | | | | | | | | | Financing | | | | | | | | | | | | Solutions | 610 | – | – | – | 610 | 598 | – | – | – | 598 | | Capital Market & | | | | | | | | | | | | Advisory | 397 | – | – | – | 397 | 278 | – | – | – | 278 | | Global Markets | 41 | – | – | – | 41 | 40 | – | – | – | 40 | | Macro Trading | 8 | – | – | – | 8 | 7 | – | – | – | 7 | | Credit Trading | 33 | – | – | – | 33 | 37 | – | – | – | 37 | | Valuation & | | | | | | | | | | | | Other Adj | – | – | – | – | – | (4) | – | – | – | (4) | | Wealth Solutions | – | 1,135 | 1 | – | 1,136 | – | 913 | – | – | 913 | | Investment | | | | | | | | | | | | Products | – | 839 | – | – | 839 | – | 734 | – | – | 734 | | Bancassurance | – | 296 | 1 | – | 297 | – | 179 | – | – | 179 | | CCPL & Other Unsecured Lending | – | 217 | – | – | 217 | – | 229 | – | – | 229 | | Deposits | – | 104 | – | – | 104 | – | 97 | – | – | 97 | | Mortgages & Other Secured Lending | – | 14 | – | – | 14 | – | 20 | – | – | 20 | | Ventures | – | – | 41 | – | 41 | – | – | 39 | – | 39 | | Treasury & Others | 1 | 19 | (1) | (1) | 18 | (2) | 19 | – | (19) | (2) | | Net fees and commission income | 2,428 | 1,489 | 41 | (1) | 3,957 | 2,188 | 1,278 | 39 | (19) | 3,486 | | Net fees and commission | | | | | | | | | | | | expense | (704) | (279) | (18) | (30) | (1,031) | (530) | (266) | (18) | (10) | (824) | | Net fees and commission | 1,724 | 1,210 | 23 | (31) | 2,926 | 1,658 | 1,012 | 21 | (29) | 2,662 | 1 Results have been re-presented to reflect the reallocation of Treasury and Other items across product. Upfront bancassurance consideration amounts are amortised on a straight-line basis over the contractual period to which the consideration relates. Deferred income on the balance sheet in respect of these activities is $374 million (31 December 2024: $419 million), which will be earned evenly over the remaining life of the contract till June 2032. For the twelve months ended 31 December 2025, $45 million of fee income was released from deferred income (31 December 2024: $45 million). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 98 ![]() 5. Net trading income Accounting policy Gains and losses arising from changes in the fair value of financial 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 initial fair value of a financial instrument held at fair value through profit or loss relies on unobservable inputs, the difference between the initial 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 positions, margins on market making and customer business and fair value changes. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Net trading income | 6,185 | 5,530 | | Significant items within net trading income include: | | | | Gains on instruments held for trading 1 | 5,024 | 4,272 | | Gains on financial assets mandatorily at fair value through profit or loss | 4,839 | 4,580 | | Losses on financial liabilities designated at fair value through profit or loss | (3,568) | (3,162) | 1 Includes $26 million gain (31 December 2024: $54 million loss) from the translation of foreign currency monetary assets and liabilities. 6. Other operating income | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Other operating income/(loss) includes: | | | | Rental income from operating lease assets | 6 | 7 | | Net loss on disposal of fair value through other comprehensive income debt instruments | (27) | (172) | | Net loss on disposal of amortized cost financial assets | (26) | (18) | | Net gain/(loss) on sale of businesses 1 | 4 1 | (214) 2 | | Dividend income | 6 | 3 | | Others 3 | 165 | 216 | | Other operating income/(loss) | 128 | (178) | 1 Includes $3 million gain from disposal of businesses ($13 million gain from WRB business in SCB Tanzania, partly offset by $5 million loss from Standard Chartered Bank Gambia Limited and $5 million loss from Standard Chartered Bank Cameroon S.A.) of which $17 million relates to realisation of translation adjustment loss. Total cash consideration received from the disposal was $48 million ($13 million: SCB Tanzania, $6 million: Standard Chartered Bank Gambia Limited, $29 million: Standard Chartered Bank Cameroon S.A.). 2 2024 balance mainly includes loss on disposal of Africa subsidiaries $217 million ($172 million: SCB Zimbabwe Limited, $26 million: SCB Angola S.A. and $19 million: SCB Sierra Leone Limited) of which $246 million relates to realisation of translation adjustment loss. Total cash consideration received was $51 million ($24 million: SCB Zimbabwe Limited, $10 million: SCB Angola S.A. and $17 million: SCB Sierra Leone Limited). 3 2025 balance includes $125 million gain on disposal of property, plant and equipment and IAS 29 adjustment Ghana hyperinflationary impact ($8 million). 2024 balance includes IAS 29 adjustment Ghana hyperinflationary impact ($139 million), Research and development expenditure credit ($32 million), mark-to-market gains from deferred compensation income ($17 million), rebates/incentives received from VISA card ($10 million), gain on disposal of property, plant and equipment ($3 million) and immaterial balances across other geographies. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 99 ![]() 7. Operating expenses | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Staff costs: | | | | Wages and salaries | 5,331 | 5,007 | | Social security costs | 223 | 184 | | Other pension costs (Note 29) | 392 | 332 | | Share-based payment costs (Note 30) | 209 | 219 | | Other staff costs | 618 | 675 | | | 6,773 | 6,417 | | Premises and equipment expenses: | 267 | 254 | | General administrative expenses: | | | | UK bank levy | 52 | 90 | | Other general administrative expenses | 142 | 133 | | | 194 | 223 | | Depreciation and amortisation: | | | | Property, plant and equipment: | | | | Premises | 153 | 130 | | Equipment | 90 | 68 | | Intangibles: | | | | Software | 474 | 455 | | Acquired on business combinations | 4 | 3 | | | 721 | 656 | | Total operating expenses | 7,955 | 7,550 | Other staff costs include redundancy expenses of $103 million (31 December 2024: $142 million). Further costs in this category include training, travel costs and other staff related costs. The Group has recognised $15 million of accelerated share based payment expense relating to the amendment of vesting schedules as allowed for by the PRA Policy Statement on Remuneration Reform (dated 15 October 2025). 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 $797 million (31 December 2024: $801 million), which was recognized as an expense in the year. Other general administrative expenses include recharges of $1,350 million (31 December 2024: $1,424 million) with respect to costs incurred by fellow subsidiary undertakings The UK bank levy is applied to chargeable equity and liabilities on the balance sheet of UK operations. Key exclusions from chargeable equity and liabilities include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain sovereign debt and liabilities subject to netting. The rates are 0.10 per cent for short-term liabilities and 0.05 per cent for long-term liabilities. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 100 ![]() 8. Credit impairment Accounting policy Significant accounting estimates and judgements The Group’s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying assumptions. The significant judgements in determining expected credit loss include: • The Group’s criteria for assessing if there has been a significant increase in credit risk; • Development of expected credit loss models, including the choice of inputs relating to macroeconomic variables; • Determining estimates of forward looking macroeconomic forecasts; • Evaluation of management overlays and post-model adjustments; • Determination of recovery scenarios and probability weightings for Stage 3 individually assessed provisions The calculation of credit impairment provisions also involves expert credit judgement to be applied by the credit risk management team based upon counterparty information they receive from various sources including relationship managers and on external market information. Details on the approach for determining expected credit loss can be found in the credit risk section, under IFRS 9 Methodology (page 54). Estimates of forecasts of key macroeconomic variables underlying the expected credit loss calculation can be found within the Risk review, Key assumptions and judgements in determining expected credit loss (page 55). Expected credit losses An ECL represents the present value of expected cash shortfalls over the residual term of a financial asset, undrawn commitment or financial 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, probability-weighted amounts which are determined by evaluating a range of reasonably possible outcomes, the time value of money, and considering all reasonable and supportable information including that which is forward-looking. For material portfolios, the estimate of expected cash shortfalls is determined by multiplying the probability 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 lifetime 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 sophisticated approaches based on historical 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 indices and commodity 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 information, which 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-linearity 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 determining the PD (and where relevant, the LGD and EAD) and in determining 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 limited to the maximum contractual period for which the Group is exposed to credit risk. However, for certain revolving credit facilities, which include credit cards or overdrafts, the Group’s exposure to credit risk is not limited to the contractual period. 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 facilities. For credit-impaired financial instruments, the estimate of cash shortfalls may require the use of expert credit judgement. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 101 ![]() 8. Credit impairment continued The estimate of expected cash shortfalls on a collateralised financial instrument reflects the amount and timing of cash flows that are expected from foreclosure on the collateral less the costs of obtaining and selling the collateral, regardless of whether foreclosure is deemed probable. Cash flows from unfunded credit enhancements held are included within the measurement of expected credit losses if they are part of, or integral to, the contractual terms of the instrument (this includes financial guarantees, unfunded risk participations and other non-derivative credit 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 if this is virtually certain to be received. Cash shortfalls are discounted using the effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired instruments (POCI)) on the financial instrument as calculated at initial recognition or if the instrument has a variable interest rate, the current effective interest rate determined under the contract. | | | | --- | --- | | Instruments | Location of expected credit loss provisions | | Financial assets held at amortised cost | Loss provisions: netted against gross carrying value 1 | | Financial assets held FVOCI – Debt instruments | Other comprehensive income (FVOCI expected credit loss reserve) 2 | | Loan commitments | Provisions for liabilities and charges 3 | | Financial guarantees | Provisions for liabilities and charges 3 | 1 Purchased or originated credit-impaired assets do not attract an expected credit loss provision on initial recognition. An expected credit loss provision will be recognised only if there is an increase in expected credit losses from that considered at initial recognition. 2 Debt and treasury securities classified as fair 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 within other comprehensive income (OCI) and is recycled to the profit and loss account along with any fair value measurement gains or losses held within FVOCI when the applicable instruments are derecognised. 3 Expected credit loss on loan commitments and financial guarantees is recognised as a liability provision. Where a financial instrument includes both a loan (i.e. financial asset component) and an undrawn commitment (i.e. loan commitment component), and it is not possible to separately identify the expected credit loss on these components, expected credit loss amounts on the loan commitment are recognised together with expected credit loss amounts on the financial asset. To the extent the combined expected credit loss exceeds the gross carrying amount of the financial asset, the expected credit loss is recognised as a liability provision. Recognition 12 months expected credit losses (stage 1) Expected credit losses are recognised at the time of initial recognition of a financial instrument and represent the lifetime cash shortfalls arising from possible 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 significant increase in the credit risk of an instrument or the instrument becomes credit-impaired. If an instrument is no longer considered to exhibit a significant increase in credit risk, expected credit losses will revert to being determined on a 12-month basis. Significant increase in credit risk (Stage 2) Significant 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 origination (after taking into account the passage of time). Significant does not mean statistically significant nor is it assessed in the context of changes in expected credit loss. Whether a change in the risk of default is significant or not is assessed using a number of quantitative and qualitative factors, the weight of which depends on the type of product and counterparty. Financial assets that are 30 or more days past due and not credit-impaired will always be considered to have experienced a significant increase in credit risk. For less material portfolios where a loss rate or roll rate approach is applied to compute expected credit loss, significant increase in credit risk is primarily based on 30 days past due. Quantitative factors include an assessment of whether there has been significant increase in the forward-looking probability of default (PD) since origination. A forward-looking PD is one that is adjusted for future economic conditions to the extent these are correlated to changes in credit risk. We compare the residual lifetime PD at the balance sheet date to the residual lifetime PD that was expected at the time of origination 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 significant increase in credit risk (see page 58 to 59). Qualitative 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 monitoring). A non-purely precautionary early alert account is one which exhibits material credit concerns which may result in a default by the client if left unaddressed requiring closer monitoring, supervision, or attention by management. Indicators could include a rapid erosion of position within the industry, concerns over management’s ability to manage operations, weak/deteriorating operating results, liquidity strain and overdue balances among other factors . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 102 ![]() #### Notes to the financial statements 8. Credit impairment continued Credit-impaired (or defaulted) exposures (Stage 3) Financial assets that are credit-impaired (or in default) represent those that are at least 90 days past due in respect of principal and/or interest. Financial assets are also considered to be credit-impaired where the obligors 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 possible to identify a single discrete event but instead the combined effect of several events may cause financial assets to become credit-impaired. • Evidence that a financial asset is credit-impaired includes observable data about the following events: • Significant financial difficulty 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 financial difficulty, the lenders of the borrower have granted the borrower concession/s that lenders would not otherwise consider. This would include forbearance actions (page 43); • Pending or actual bankruptcy or other financial reorganisation to avoid or delay discharge of the borrower’s obligation/s; • The disappearance of an active market for the applicable financial asset due to financial difficulties of the borrower; • Purchase or origination of a financial asset at a deep discount that reflects incurred credit losses. Lending commitments to a credit-impaired obligor that have not yet been drawn down are included to the extent that the commitment cannot be withdrawn. Loss provisions against credit-impaired financial assets are determined based on an assessment of the present value of expected cash shortfalls (discounted at the instrument’s original effective interest rate) under a range of scenarios, including the realisation of any collateral held where appropriate. The Group’s definition of default is aligned with the regulatory definition of default as set out in the UK’s onshored capital requirements regulations (Art 178). Expert credit judgement For Corporate & Investment Banking 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 exhibit credit deterioration, it will move along the credit grading scale in the performing book. When a borrower is classified as CG12 (which is the lowest performing book and credit grade and is a qualitative grade and is a qualitative trigger for significant increase in credit risk (see page 58)), it will continue to be primarily managed by relationship managers in the CIB unit with support from Stressed Asset Group (SAG) for certain accounts. SAG is the Group’s specialist recovery unit, which is independent of the Client Coverage/Relationship Managers. Borrowers graded CG12 exhibit well-defined weaknesses in areas such as management and/or performance but there is no current expectation of a loss of principal or interest at this stage and there is no indication of unlikeliness to repay (it is still a performing asset). Where the impairment assessment indicates that there will be a loss of principal on a loan in the likely scenario, the borrower is graded a CG14 while borrowers of other credit-impaired loans are graded CG13. Instruments graded CG13 or CG14 are regarded as stage 3. Credit-impaired accounts are managed by SAG, which is independent of the Client Coverage/Relationship Managers. Where a portion of exposure is considered not recoverable, a stage 3 credit impairment provision is raised. This stage 3 provision is the difference between the loan-carrying amount and the probability-weighted 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 information on the value recoverable collateral and time to realise the same. The individual circumstances of each client are considered when SAG estimates future cashflows and the timing of future recoveries which involves significant judgement. All available sources, such as cashflow arising from operations, selling assets or subsidiaries, realising collateral or payments under guarantees, are considered. In any decision relating to the raising of provisions, the Group attempts to balance economic conditions, local knowledge and experience, and the results of independent asset reviews. The individual impairment provisions (viz. those not directly from a model) are approved by Stressed Assets Risk (SAR) who are in the Second Line of Defence. For financial assets which are not individually significant, such as the Retail Banking portfolio or small business loans, which comprise a large number of homogeneous loans that share similar characteristics, statistical estimates and techniques are used, as well as credit scoring analysis. Directors’ Report and Financial Statements 2025 | Standard Chartered 103 ![]() 8. Credit impairment continued Wealth, Retail and Business Banking clients are considered credit-impaired 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 identified fraud on the account. Additionally, if the account is unsecured and the borrower has other credit accounts with the Group that are considered credit-impaired, the account may be also be credit-impaired. Techniques used to compute impairment amounts use models which analyse historical repayment and default rates over a time horizon. Where various models are used, judgement is required to analyse the available information provided and select the appropriate model or combination of models to use. The core components in determining credit-impaired expected credit loss provisions are the value of gross charge-off and recoveries. Gross charge-off and/or loss provisions are recognised when it is established that the account is unlikely to pay through the normal process. Recovery of unsecured debt post credit impairment is recognised based on actual cash collected, either directly from clients or through the sale of defaulted loans to third-party institutions. Release of credit impairment provisions for secured loans is recognised if the loan outstanding is paid in full (release of full provision), or the provision is higher than the loan outstanding (release of the excess provision). 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. Modified financial instruments Where the original contractual terms of a financial asset have been modified for credit reasons and the instrument has not been derecognised (an instrument is derecognised when a modification results in a change in cash flows that the Group would consider substantial), the resulting modification loss is recognised within credit impairment in the income statement with a corresponding decrease in the gross carrying value of the asset. If the modification involved a concession that the bank would not otherwise consider, the instrument is considered to be credit-impaired and is considered forborne. Expected credit loss for modified financial assets that have not been derecognised and are not considered to be credit- impaired will be recognised on a 12-month basis, or a lifetime basis, if there is a significant increase in credit risk. These assets are assessed (by comparison to the origination date) to determine whether there has been a significant increase in credit risk subsequent to the modification. Although loans may be modified for non-credit reasons, a significant increase in credit risk may occur. In addition to the recognition of modification gains and losses, the revised carrying value of modified financial assets will impact the calculation of expected credit losses, with any increase or decrease in expected credit loss recognised within impairment. Forborne loans Forborne loans are those loans that have been modified in response to a customer’s financial difficulties. Forbearance strategies assist clients who are temporarily in financial distress and are unable to meet their original contractual repayment terms. Forbearance can be initiated by the client, the Group or a third-party including government sponsored programmes or a conglomerate of credit institutions. Forbearance may include debt restructuring such as new repayment schedules, payment deferrals, tenor extensions, interest only payments, lower interest rates, forgiveness of principal, interest or fees, or relaxation of loan covenants. Forborne loans that have been modified (and not derecognised) on terms that are not consistent with those readily available in the market and/or where we have granted a concession compared to the original terms of the loans are considered credit-impaired if there is a detrimental impact on cash flows. The modification loss (see Classification and measurement – Modifications) is recognised in the profit or loss within credit impairment and the gross carrying value of the loan reduced by the same amount. The modified loan is disclosed as ‘Loans subject to forbearance – credit-impaired’. Loans that have been subject to a forbearance modification, but which are not considered credit-impaired (not classified as CG13 or CG14), are disclosed as ‘Forborne – not credit-impaired’. This may include amendments to covenants within the contractual terms. Write-offs of credit-impaired instruments and reversal of impairment 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 provision. Such loans are written off after all the necessary procedures have been completed, it is decided that there is no realistic probability of recovery and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off decrease the amount of the provision for credit impairment in the income statement. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 104 ![]() #### Notes to the financial statements 8. Credit impairment continued Loss provisions on purchased or originated credit-impaired instruments (POCI) The Group measures expected credit loss on a lifetime basis for POCI instruments throughout the life of the instrument. However, expected credit loss is not recognised in a separate loss provision on initial recognition for POCI instruments as the lifetime expected credit loss is inherent within the gross carrying amount of the instruments. The Group recognises the change in lifetime expected credit losses arising subsequent to initial recognition in the income statement and the cumulative change as a loss provision. Where lifetime expected credit losses on POCI instruments are less than those at initial recognition, then the favourable differences are recognised as impairment gains in the income statement (and as impairment loss where the expected credit losses are greater). Improvement in credit risk/curing For financial assets that are credit-impaired (stage 3), a transfer to stage 2 or stage 1 is only permitted where the instrument is no longer considered to be credit-impaired. An instrument will no longer be considered credit-impaired when there is no shortfall of cash flows compared to the original contractual terms. For financial assets within stage 2, these can only be transferred to stage 1 when they are no longer considered to have experienced a significant increase in credit risk. Where significant increase in credit risk was determined using quantitative measures, the instruments will automatically transfer back to stage 1 when the original PD based transfer criteria are no longer met. Where instruments were transferred to stage 2 due to an assessment of qualitative factors, the issues that led to the reclassification must be cured before the instruments can be reclassified to stage 1. This includes instances where management actions led to instruments being classified as stage 2, requiring that action to be resolved before loans are reclassified to stage 1. 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 criteria have to be satisfied: • At least a year has passed with no default based upon the forborne contract terms • The customer is likely to repay its obligations in full without realising security • The customer has no accumulated impairment against amount outstanding (except for ECL) Subsequent to the criteria above, a further two-year probation 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. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Net credit impairment on loans and advances to banks and customers | 230 | 58 | | Net credit impairment against profit or loss during the period relating to debt securities 1 | 28 | (58) | | Net credit impairment relating to financial guarantees and loan commitments | (14) | 18 | | Net credit impairment relating to other financial assets | 4 | (3) | | Credit impairment 1 | 248 | 15 | 1 Includes impairment charge of $5 million (31 December 2024: $14 million release) on originated credit-impaired debt securities. 9. Goodwill, property, plant and equipment and other impairment Accounting policy Refer to the below referenced notes for the relevant accounting policy. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Impairment of property, plant and equipment (Note 17) | 1 | 2 | | Impairment of other intangible assets (Note 16) | 22 | 383 | | Other | 6 | 25 | | Goodwill, fixed assets and other impairment | 29 | 410 | Directors’ Report and Financial Statements 2025 | Standard Chartered 105 ![]() 10. Taxation Accounting policy Income tax payable on profits is based on the applicable tax law in each jurisdiction and is recognised as an expense in the period in which profits arise. Deferred tax is provided on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial 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 liability 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 utilised. Where permitted, deferred tax assets and liabilities are offset on an entity 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 • Determining the Group’s tax charge for the year involves estimation and judgement, which includes an interpretation of local tax laws and an assessment of whether the tax authorities will accept the position taken. These judgements take account of external advice where appropriate, and the Group’s view on settling with the relevant tax authorities. • The Group provides for current tax liabilities at the best estimate of the amount that is expected to be paid to the tax authorities where an outflow is probable. In making its estimates the Group assumes that the tax authorities will examine all the amounts reported to them and have full knowledge of all relevant information. • The recoverability of the Group’s deferred tax assets is based on management’s judgement of the availability of future taxable profits against which the deferred tax assets will be utilised. In preparing management forecasts the effect of applicable laws and regulations relevant to the utilisation of future taxable profits have been considered. The following table provides analysis of taxation charge in the year: | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | The charge for taxation based upon the profit for the year comprises: | | | | Current tax: | | | | United Kingdom corporation tax at 25 per cent (2024: 25 per cent): | | | | Current tax charge on income for the year | – | – | | Adjustments in respect of prior years (including double tax relief) | (3) | 1 | | Foreign tax: | | | | Current tax charge on income for the year | 1,359 | 1,357 | | Adjustments in respect of prior years | (60) | (7) | | | 1,296 | 1,351 | | Deferred tax: | | | | Origination/reversal of temporary differences | 69 | 123 | | Adjustments in respect of prior years | (51) | (9) | | | 18 | 114 | | Tax on profits on ordinary activities | 1,314 | 1,465 | | Effective tax rate | 27.8% | 32.9% | The tax charge for the year of $1,314 million (31 December 2024: $1,465 million) on a profit before tax of $4,724 million (31 December 2024: $4,447 million) reflects the impact of non-creditable withholding taxes and other taxes, and non-deductible expenses partly offset by adjustments in respect of prior periods. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 106 ![]() 10. Taxation continued 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: | | | | | | | --- | --- | --- | --- | --- | | | 2025 | | 2024 | | | | $million | % | $million | % | | Profit on ordinary activities before tax | 4,724 | | 4,447 | | | Tax at 25 per cent (2024: 25 per cent) | 1,181 | 25.0 | 1,112 | 25.0 | | Lower tax rates on overseas earnings | (245) | (5.2) | (274) | (6.2) | | Higher tax rates on overseas earnings | 219 | 4.6 | 269 | 6.1 | | Tax at domestic rates applicable where profits earned | 1,155 | 24.4 | 1,107 | 24.9 | | Non-creditable withholding taxes and other taxes | 248 | 5.3 | 221 | 5.0 | | Tax exempt income | (48) | (1.0) | (51) | (1.1) | | Non-deductible expenses | 130 | 2.7 | 156 | 3.5 | | Bank levy | 13 | 0.3 | 23 | 0.5 | | Non-taxable losses on investments 1 | 8 | 0.2 | 50 | 1.1 | | Payments on financial instruments in reserves | (83) | (1.8) | (75) | (1.7) | | Deferred tax not recognised | 53 | 1.1 | 64 | 1.4 | | Deferred tax rate changes | 4 | 0.1 | (3) | (0.1) | | Adjustments to tax charge in respect of prior years | (114) | (2.4) | (15) | (0.3) | | Other items | (52) | (1.1) | (12) | (0.3) | | Tax on profit on ordinary activities | 1,314 | 27.8 | 1,465 | 32.9 | 1 2025 Includes tax impact of $3million (2024: $55million) relating to loss on sale of subsidiaries 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 including acquisitions, disposals and restructuring of our businesses, the mix of profits across jurisdictions with different reported tax rates, changes in tax legislation and tax rates and resolution of uncertain tax positions. The evaluation of uncertain tax positions involves an interpretation of local tax laws which could be subject to challenge by a tax authority, and an assessment of whether the tax authorities will accept the position taken. The Group does not currently consider that assumptions or judgements made in assessing tax liabilities have a significant risk of resulting in a material adjustment within the next financial year. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Current tax | Deferred tax | Total | Current tax | Deferred tax | Total | | Tax recognised in other comprehensive income | $million | $million | $million | $million | $million | $million | | Items that will not be reclassified to income statement | (10) | 10 | – | (16) | 108 | 92 | | Own credit adjustment | – | – | – | 1 | 27 | 28 | | Equity instruments at fair value through other comprehensive income | (9) | – | (9) | (17) | 89 | 72 | | Retirement benefit obligations | (1) | 10 | 9 | – | (8) | (8) | | Items that may be reclassed subsequently to income statement | (3) | (39) | (42) | (7) | (31) | (38) | | Debt instruments at fair value through other comprehensive income | (3) | (16) | (19) | (7) | (20) | (27) | | Cash flow hedges | – | (23) | (23) | – | (11) | (11) | | Total tax credit/(charge) recognised in equity | (13) | (29) | (42) | (23) | 77 | 54 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 107 ![]() 10. Taxation continued Current tax: The following are the movements in current tax during the year: | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Current tax comprises: | | | | | | Current tax assets | 644 | 484 | 516 | 395 | | Current tax liabilities | (559) | (445) | (294) | (188) | | Net current tax opening balance | 85 | 39 | 222 | 207 | | Movements in income statement | (1,296) | (1,351) | (740) | (681) | | Movements in other comprehensive income | (13) | (23) | (13) | (23) | | Taxes paid | 1,282 | 1,422 | 711 | 720 | | Other movements | (26) | (2) | (22) | (1) | | Net current tax balance as at 31 December | 32 | 85 | 158 | 222 | | Current tax assets | 549 | 644 | 412 | 516 | | Current tax liabilities | (517) | (559) | (254) | (294) | | Total | 32 | 85 | 158 | 222 | Deferred tax: The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the year: Group | | | | | | | | --- | --- | --- | --- | --- | --- | | | At 1 January | Exchange & other | (Charge)/credit | (Charge)/credit | At 31 December | | | 2025 | adjustments | to profit | to equity 2025 | | | | $million | $million | $million | $million | $million | | Deferred tax comprises: | | | | | | | Accelerated tax depreciation | (260) | (17) | – | – | (277) | | Impairment provisions on loans and advances | 178 | (5) | – | – | 173 | | Tax losses carried forward | 69 | 9 | (33) | – | 45 | | Equity instruments at fair value through other comprehensive income | (32) | (5) | – | – | (37) | | Debt instruments at fair value through other comprehensive income | (3) | 7 | – | (16) | (12) | | Cashflow hedges | (7) | (4) | – | (23) | (34) | | Own credit adjustment | – | – | – | – | – | | Retirement benefit obligations | (7) | 1 | 13 | 10 | 17 | | Share-based payments | 41 | 2 | 6 | – | 49 | | Other temporary differences | (56) | (2) | (4) | 2 | (60) | | Net deferred tax | (77) | (14) | (18) | (27) | (136) | | | | | | | | | --- | --- | --- | --- | --- | --- | | | At 1 January | Exchange & other | (Charge)/credit | (Charge)/credit | At 31 December | | | 2024 | adjustments | to profit | to equity 2024 | | | | $million | $million | $million | $million | $million | | Deferred tax comprises: | | | | | | | Accelerated tax depreciation | (318) | 8 | 53 | (3) | (260) | | Impairment provisions 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 obligations | 2 | (4) | 3 | (8) | (7) | | Share-based payments | 30 | – | 11 | – | 41 | | Other temporary differences | 80 | 2 | (173) | 35 | (56) | | Net deferred tax | (80) | 8 | (114) | 109 | (77) | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 108 ![]() 10. Taxation continued Deferred tax comprises assets and liabilities as follows: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Total | Asset | Liability | Total | Asset | Liability | | | $million | $million | $million | $million | $million | $million | | Deferred tax comprises: | | | | | | | | Accelerated tax depreciation | (277) | 41 | (318) | (260) | 29 | (289) | | Impairment provisions on loans and advances | 173 | 175 | (2) | 178 | 153 | 25 | | Tax losses carried forward | 45 | 14 | 31 | 69 | 46 | 23 | | Equity instruments at fair value through other comprehensive income | (37) | (2) | (35) | (32) | (7) | (25) | | Debt instruments at fair value through other comprehensive income | (12) | (3) | (9) | (3) | 5 | (8) | | Cashflow hedges | (34) | (12) | (22) | (7) | (2) | (5) | | Own credit adjustment | – | – | – | – | – | – | | Retirement benefit obligations | 17 | 34 | (17) | (7) | 14 | (21) | | Share-based payments | 49 | 14 | 35 | 41 | 7 | 34 | | Other temporary differences | (60) | 126 | (186) | (56) | 105 | (161) | | | (136) | 387 | (523) | (77) | 350 | (427) | Deferred tax: The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon during the year: Company | | | | | | | | --- | --- | --- | --- | --- | --- | | | At 1 January | Exchange & other | (Charge)/credit | (Charge)/credit | At 31 December | | | 2025 | adjustments | to profit | to equity 2025 | | | | $million | $million | $million | $million | $million | | Deferred tax comprises: | | | | | | | Accelerated tax depreciation | (202) | (12) | – | – | (214) | | Impairment provisions on loans and advances | 96 | (1) | 5 | – | 100 | | Tax losses carried forward | 50 | 7 | (12) | – | 45 | | Equity instruments at fair value through other comprehensive income | (30) | (5) | – | – | (35) | | Debt instruments at fair value through other comprehensive income | 22 | 1 | 1 | (22) | 2 | | Cashflow hedges | (4) | (3) | – | (14) | (21) | | Own credit adjustment | – | – | – | – | – | | Retirement benefit obligations | (15) | 1 | 2 | 9 | (3) | | Share-based payments | 16 | – | 1 | – | 17 | | Other temporary differences | (8) | (5) | 15 | – | 2 | | Net deferred tax | (75) | (17) | 12 | (27) | (107) | | | | | | | | | --- | --- | --- | --- | --- | --- | | | At 1 January | Exchange & other | (Charge)/credit | (Charge)/credit | At 31 December | | | 2024 | adjustments | to profit | to equity 2024 | | | | $million | $million | $million | $million | $million | | Deferred tax comprises: | | | | | | | Accelerated tax depreciation | (264) | 8 | 54 | – | (202) | | Impairment provisions 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 obligations | (5) | (6) | 3 | (7) | (15) | | Share-based payments | 11 | – | 5 | – | 16 | | Other temporary differences | 90 | 2 | (100) | – | (8) | | Net deferred tax | (98) | 1 | (51) | 73 | (75) | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 109 ![]() 10. Taxation continued Deferred tax comprises assets and liabilities as follows: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Total | Asset | Liability | Total | Asset | Liability | | | $million | $million | $million | $million | $million | $million | | Deferred tax comprises: | | | | | | | | Accelerated tax depreciation | (214) | 42 | (256) | (202) | 31 | (233) | | Impairment provisions on loans and advances | 100 | 100 | – | 96 | 96 | – | | Tax losses carried forward | 45 | 14 | 31 | 50 | 26 | 24 | | Equity instruments at fair value through other comprehensive income | (35) | (1) | (34) | (30) | (7) | (23) | | Debt instruments at fair value through other comprehensive income | 2 | 2 | – | 22 | 22 | – | | Cashflow hedges | (21) | (11) | (10) | (4) | (2) | (2) | | Own credit adjustment | – | – | – | – | – | – | | Retirement benefit obligations | (3) | 19 | (22) | (15) | 9 | (24) | | Share-based payments | 17 | 13 | 4 | 16 | 6 | 10 | | Other temporary differences | 2 | 73 | (71) | (8) | 52 | (60) | | | (107) | 251 | (358) | (75) | 233 | (308) | Group The recoverability of the Group’s deferred tax assets is based on management’s judgement of the availability of future taxable profits against which the deferred tax assets will be utilised. The Group’s total deferred tax assets include $45 million relating to tax losses carried forward, of which $31 million arises in legal entities with offsetting deferred tax liabilities. The remaining deferred tax assets on losses of $14 million are forecast to be recovered before expiry and within five years. Company The recoverability of the Group’s deferred tax assets is based on management’s judgement of the availability of future taxable profits against which the deferred tax assets will be utilised. The Group’s total deferred tax assets include $45 million relating to tax losses carried forward, of which $31 million arises in legal entities with offsetting deferred tax liabilities. The remaining deferred tax assets on losses of $14 million are forecast to be recovered before expiry and within five years. Unrecognised deferred tax Group | | | | | | | --- | --- | --- | --- | --- | | | Net 2025 | Gross 2025 | Net 2024 | Gross 2024 | | | $million | $million | $million | $million | | No account has been taken of the following potential deferred tax | | | | | | assets/(liabilities): | | | | | | Withholding tax on unremitted earnings from overseas subsidiaries | | | | | | and associates | (379) | (2,912) | (358) | (2,719) | | Tax losses | 985 | 3,936 | 1,027 | 4,099 | | Held over gains on incorporation of overseas branches | (184) | (656) | (171) | (610) | | Other temporary differences | 305 | 1,174 | 345 | 1,310 | Company | | | | | | | --- | --- | --- | --- | --- | | | Net 2025 | Gross 2025 | Net 2024 | Gross 2024 | | | $million | $million | $million | $million | | No account has been taken of the following potential deferred tax | | | | | | assets/(liabilities): | | | | | | Withholding tax on unremitted earnings from overseas subsidiaries | | | | | | and associates | (265) | (1,899) | (243) | (1,768) | | Tax losses | 880 | 3,403 | 911 | 3,530 | | Held over gains on incorporation of overseas branches | (184) | (656) | (171) | (610) | | Other temporary differences | 289 | 1,086 | 333 | 1,245 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 110 ![]() 11. Dividends Accounting policy The Court considers a number of factors which include the rate of recovery in the Group’s financial performance, the macroeconomic environment, and opportunities to further invest in our business and grow profitably in our markets. Ordinary equity shares | | | | | | | --- | --- | --- | --- | --- | | | 2025 | | 2024 | | | | Cents per | | Cents per | | | | share | $million | share | $million | | 2024/2023 final dividend declared and paid during the year | 5 | 995 | 6 | 1,240 | | 2025/2024 interim dividend declared and paid during the year | 6 | 1,281 | 6 | 1,155 | Dividends on ordinary equity shares are recorded in the period in which they are declared and, in respect of the final dividend, have been approved by the shareholders. Preference shares and Additional Tier 1 securities Dividends on these preference shares and securities classified as equity are recorded in the period in which they are declared | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Non-cumulative redeemable preference shares: | | | | Floating rate preference shares of $5 each 1 | 47 | 54 | | Additional Tier 1 securities: Fixed rate resetting perpetual subordinated contingent convertible securities | 342 | 295 | | | 389 | 349 | 1 Floating rate is based on Secured Overnight Financing Rate (SOFR), average rate paid for floating preference shares is 6.23% (2024: 7.21%). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 111 ![]() 12. Financial instruments Classification and measurement Accounting policy Financial assets held at amortised 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 principal and interest (SPPI) characteristics. In assessing whether the contractual cash flows have SPPI characteristics, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making the assessment, the Group considers: • Contingent events that would change the amount and timing of cash flows • Leverage features • Prepayment and extension terms • Terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse asset arrangements) • Features that modify consideration of the time value of money – e.g. periodical reset of interest rates. Whether financial assets are held at amortised cost or at FVOCI depends on the objectives of the business models under which the assets are held. A business model refers to how the Group manages financial assets to generate cash flows. The Group makes an assessment of the objective of a business model in which an asset is held at the individual product business line, and where applicable within business lines depending on the way the business is managed and information 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, including 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 timing of sales in prior periods, the reasons for such sales and expectations about future sales activity. The Group’s business model assessment is as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Business | Business | | | | | | | | model | objective | Characteristics | | Businesses | | Products | | | Hold to | Intent is to | • | Providing financing and | • | Global Banking | • | Loans and | | collect | originate financial | originating assets to earn interest | | • | Transaction | advances | | | | assets and hold | income as primary income stream | | Banking | | • | Debt securities | | | them to maturity, | • | Performing credit risk | • | Retail Lending | | | | | collecting the | management activities | | • | Treasury | | | | | contractual cash | • | Costs include funding costs, transaction | Markets (Loans | | | | | | flows over the term | costs and impairment losses | | and Borrowings) | | | | | | of the instrument | | | | | | | | | | | | • | Global Markets | | | | Hold to | Business objective | • | Portfolios held for liquidity needs; or | • | Treasury | • | Debt securities | | collect | met through both | where a certain interest yield profile is | | Markets | | | | | and sell | hold to collect and | maintained; or that are normally | | • | Central Credit | | | | | by selling financial | rebalanced to achieve matching of | | Unit | | | | | | assets | duration of assets and liabilities | | | | | | | | | • | Income streams come from interest | | | | | | | | income, fair value changes, and | | | | | | | | | impairment losses | | | | | | | Fair value | All other business | • | Assets held for trading | • | Treasury | • | Derivatives | | through | objectives, | • | Assets that are originated, purchased, | Markets | | • | Equity shares | | profit | including trading | and sold for profit taking or | | • | Global Markets | • | Trading | | or loss | and managing | underwriting activity | | • | All other | portfolios | | | | financial assets on | • | Performance of the portfolio is | | business lines | • | Reverse repos | | | a fair value basis | evaluated on a fair value basis | | | | • | Bond and Loan | | | | • | Income streams are from fair value | | | | Syndication | | | | | changes or trading gains or losses | | | | | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 112 ![]() 12. Financial instruments continued Accounting policy continued The Group’s business model assessment is as follows: Financial assets which have SPPI characteristics and that are held within a business model whose objective is to hold financial assets to collect contractual cashflows (hold to collect) are recorded at amortised cost. Conversely, financial assets which have SPPI characteristics but are held within a business model whose objective is achieved by both collecting contractual cashflows and selling financial assets (Hold to collect and sell) are classified as held at FVOCI. Both hold to collect and hold to collect and sell business models involve holding financial assets to collect the contractual cashflows. However, the business models are distinct by reference to the frequency and significance that asset sales play in meeting the objective under which a particular group of financial assets is managed. Hold to collect business models are characterised by asset sales that are incidental to meeting the objectives under which 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 financial assets but sales for other reasons should be infrequent or insignificant. Cashflows from the sale of financial assets under a hold to collect and sell business model by contrast are integral to achieving the objectives under which a particular group of financial assets are managed. This may be the case where frequent sales of financial assets are required to manage the Group’s daily liquidity requirements or to meet regulatory requirements to demonstrate liquidity of financial instruments. Sales of assets under hold to collect and sell business models are therefore both more frequent and more significant 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 initial recognition as held at FVOCI on an instrument-by-instrument basis. Dividends received are recognised in profit or loss. Gains and losses arising from changes in the fair value of these instruments, including foreign exchange gains and losses, are recognised directly in equity and are never reclassified to profit or loss even on derecognition. Mandatorily classified at fair value through profit or loss Financial assets and liabilities which are mandatorily held at fair value through profit or loss are split between two subcategories as follows: Trading, including: • Financial assets and liabilities held for trading, which are those acquired principally for the purpose of selling in the short-term • Derivatives Non-trading mandatorily at fair value through profit or loss, including: • Instruments in a business which has a fair value business model (see the Group’s business model assessment) which are not trading or derivatives • Hybrid financial assets that contain one or more embedded derivatives • Financial assets that would otherwise be measured at amortised cost or FVOCI but which do not have SPPI characteristics • Equity instruments that have not been designated as held at FVOCI • Financial liabilities that constitute contingent consideration in a business combination Designated at fair value through profit or loss Financial assets and liabilities may be designated at fair value through profit or loss when the designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities on a different basis (‘accounting mismatch’). Financial liabilities may also be designated at fair value through profit or loss where they are managed on a fair value basis or have an embedded derivative where the Group is not able to separately value, and thus bifurcate, the embedded derivative component. Financial liabilities held at amortised cost Financial liabilities that are not financial guarantees or loan commitments and that are not classified as financial liabilities held at fair value through profit or loss are classified as financial liabilities held at amortised 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 specific date or at the option of the shareholder are classified as financial liabilities and are presented in other borrowed funds. The dividends on these preference shares are recognised in the income statement as interest expense on an amortised cost basis using the effective interest method. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 113 ![]() 12. Financial instruments continued Financial guarantee contracts and loan commitments The Group issues financial guarantee contracts and loan commitments in return for fees. Financial guarantee contracts and any loan commitments issued at below-market interest rates are initially recognised at their fair value as a financial liability, and subsequently measured at the higher of the initial value less the cumulative amount of income recognised in accordance with the principles of IFRS 15 Revenue from Contracts with Customers and their expected credit loss provision. 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 financial assets and liabilities The fair value of financial instruments is generally measured on the basis of the individual financial instrument. However, when a group of financial assets and financial liabilities is managed on the basis of its net exposure to either market risk or credit risk, the fair value of the group of financial instruments is measured on a net basis. The fair values of quoted financial assets and liabilities in active markets are based on current prices. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. If the market for a financial instrument, and for unlisted securities, is not active, the Group establishes fair value by using valuation techniques. Initial recognition Regular way purchases and sales of financial assets held at fair value through profit or loss, and held at fair value through other comprehensive income, are initially 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 amortised cost are recognised on the settlement date (the date on which cash is advanced to the borrowers). All financial instruments are initially recognised at fair value, which is normally the transaction price, plus directly attributable transaction costs for financial assets and liabilities which are not subsequently measured at fair value through profit or loss. In certain circumstances, the initial fair value may be based on a valuation technique which may lead to the recognition of profits or losses at the time of initial recognition. However, these profits or losses can only be recognised when the valuation technique used is based solely on observable market data. In those cases where the initially 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 immediately 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 Financial assets and financial liabilities held at amortised cost Financial assets and financial liabilities held at amortised 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 qualifying fair value hedge relationship, its carrying value is adjusted by the fair value gain or loss attributable to the hedged risk. Financial assets held at FVOCI Debt instruments held at FVOCI are subsequently carried at fair value, with all unrealised gains and losses arising 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 derecognition, the cumulative 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 arising from changes in fair value (including any related foreign exchange gains or losses) recognised in other comprehensive income and accumulated in a separate component of equity. On derecognition, the cumulative reserve is transferred to retained earnings and is not recycled to profit or loss. Financial assets and liabilities held at fair value through profit or loss Gains and losses arising from changes in fair value, including contractual interest income or expense, recorded in the net trading income line in the profit or loss. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 114 ![]() 12. Financial instruments continued Derecognition of financial instruments Financial assets which are subject to commercial refinancing 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 original contract have expired, the old loan is derecognised and the new loan is recognised at fair value. For all other modifications 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 derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of the consideration received (including any new asset obtained less any new liability 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 liability that are held in other comprehensive income. Financial liabilities are derecognised when they are extinguished. A financial liability is extinguished when the obligation is discharged, cancelled or expires and this is evaluated both qualitatively and quantitatively. However, where a financial liability has been modified, it is derecognised if the difference between the modified cash flows and the original cash flows is more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitative assessment to determine 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 liability and the consideration paid is included in ‘Other income’ except for the cumulative fair value adjustments attributable to the credit risk of a liability that are held in Other comprehensive income, which are never recycled to the profit or loss. Modified financial instruments Financial assets and financial liabilities whose original contractual terms have been modified, including those loans subject to forbearance strategies, are considered to be modified instruments. Modifications may include changes to the tenor, cash flows and or interest rates among other factors. Where derecognition of financial assets is appropriate (see Derecognition), the newly recognised residual loans are assessed to determine whether the assets should be classified as purchased or originated credit-impaired assets (POCI). Where derecognition is not appropriate, the gross carrying amount of the applicable instruments is recalculated as the present value of the renegotiated or modified contractual cash flows discounted at the original effective interest rate (or credit adjusted effective interest rate for POCI financial assets). The difference between the recalculated values and the pre-modified gross carrying values of the instruments are recorded as a modification gain or loss in the profit or loss. Gains and losses arising from modifications for credit reasons are recorded as part of ‘Credit Impairment’ (see Credit Impairment policy). Modification gains and losses arising from non-credit reasons are recognised either as part of ‘Credit Impairment’ or within income depending on whether there has been a change in the credit risk on the financial asset subsequent to the modification. Modification gains and losses arising on financial liabilities are recognised within income. The movements in the applicable expected credit loss loan positions are disclosed in further detail in Risk Review . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 115 ![]() #### Notes to the financial statements 12. Financial instruments continued The Group’s classification of its financial assets and liabilities is summarised in the following tables. Group | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Assets at fair value | | | | | | | | | | Non-trading | Designated | | | | | | | | | | mandatorily | at fair value | Fair value | Total | Assets | | | | | | Derivatives | at fair value through | | through other | financial | held at | | | | | | held for | through | profit | comprehensive | assets at | amortised | | | | | Trading | hedging | profit or loss | or loss | income | fair value | cost | Total | | Assets | Notes | $million | $million | $million | $million | $million | $million | $million | $million | | Cash and balances at central banks 1 | | – | – | – | – | – | – | 64,943 | 64,943 | | Financial assets held at fair value through profit or loss | | | | | | | | | | | Loans and advances to banks 2,3 | | 2,435 | – | – | – | – | 2,435 | – | 2,435 | | Loans and advances to customers 3 | | 8,753 | – | 192 | – | – | 8,945 | – | 8,945 | | Reverse repurchase agreements | | | | | | | | | | | and other similar secured lending | 15 | – | – | 66,326 | – | – | 66,326 | – | 66,326 | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | 42,646 | – | 404 | – | – | 43,050 | – | 43,050 | | Equity shares | | 216 | – | 106 | – | – | 322 | – | 322 | | | | 54,050 | – | 67,028 | – | – | 121,078 | – | 121,078 | | Derivative financial instruments | 13 | 65,464 | 1,015 | – | – | – | 66,479 | – | 66,479 | | Loans and advances to banks 2,3 | 14 | – | – | – | – | – | – | 24,771 | 24,771 | | of which – reverse repurchase | | | | | | | | | | | agreements and other similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 3,698 | 3,698 | | Loans and advances to customers 3 | 14 | – | – | – | – | – | – | 159,254 | 159,254 | | of which – reverse repurchase | | | | | | | | | | | agreements and other similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 7,350 | 7,350 | | Investment securities | | | | | | | | | | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | – | – | – | – | 69,754 | 69,754 | 33,911 | 103,665 | | Equity shares | | – | – | – | – | 256 | 256 | – | 256 | | | | – | – | – | – | 70,010 | 70,010 | 33,911 | 103,921 | | Other assets | 19 | – | – | – | – | – | – | 20,435 | 20,435 | | Assets held for sale | 20 | – | – | – | – | – | – | 909 | 909 | | Total at 31 December 2025 | | 119,514 | 1,015 | 67,028 | – | 70,010 | 257,567 | 304,223 | 561,790 | 1 Comprises cash held at central banks in restricted accounts of $2,893 million, or on demand, or placements which are contractually due to mature over-night only. Other placements with central banks are reported as part of Loans and advances to customers. 2 Loans and advances to banks includes amounts due on demand from banks and other central banks. 3 Further analysed in Risk review and Capital review (pages 49 to 50) . Directors’ Report and Financial Statements 2025 | Standard Chartered 116 ![]() 12. Financial instruments continued | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Assets at fair value | | | | | | | | | | Non-trading | Designated | | | | | | | | | | mandatorily | at fair value | Fair value | Total | Assets | | | | | | Derivatives | at fair value through | | through other | financial | held at | | | | | | held for | through | profit | comprehensive | assets at | amortised | | | | | Trading | hedging | profit or loss | or loss | income | fair value | cost | Total | | Assets | Notes | $million | $million | $million | $million | $million | $million | $million | $million | | Cash and balances at central banks 1 | | – | – | – | – | – | – | 56,665 | 56,665 | | Financial assets held at fair value through profit or loss | | | | | | | | | | | Loans and advances to banks 2,3 | | 2,033 | – | – | – | – | 2,033 | – | 2,033 | | Loans and advances to customers 3 | | 3,833 | – | 156 | – | – | 3,989 | – | 3,989 | | Reverse repurchase agreements | | | | | | | | | | | and other similar secured lending | 15 | 260 | – | 65,343 | – | – | 65,603 | – | 65,603 | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | 30,217 | – | 416 | – | – | 30,633 | – | 30,633 | | Equity shares | | 1,240 | – | 126 | – | – | 1,366 | – | 1,366 | | | | 37,583 | – | 66,041 | – | – | 103,624 | – | 103,624 | | Derivative 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 similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 2,889 | 2,889 | | Loans and advances to customers 3 | 14 | – | – | – | – | – | – | 158,242 | 158,242 | | of which – reverse repurchase | | | | | | | | | | | agreements and other similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 9,121 | 9,121 | | Investment securities | | | | | | | | | | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | – | – | – | – | 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 million, or on demand, or placements which are contractually due to mature over-night only. Other placements with central banks are reported as part of Loans and advances to customers. 2 Loans and advances to banks includes amounts due on demand from banks and other central banks. 3 Further analysed in Risk review and Capital review (pages 49 to 50) . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 117 ![]() 12. Financial instruments continued Company | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Assets at fair value | | | | | | | | | | Non-trading | Designated | | | | | | | | | | mandatorily | at fair value | Fair value | Total | Assets | | | | | | Derivatives | at fair value through | | through other | financial | held at | | | | | | held for | through | profit | comprehensive | assets at | amortised | | | | | Trading | hedging | profit or loss | or loss | income | fair value | cost | Total | | Assets | Notes | $million | $million | $million | $million | $million | $million | $million | $million | | Cash and balances at central banks 1 | | – | – | – | – | – | – | 52,348 | 52,348 | | Financial assets held at fair value through profit or loss | | | | | | | | | | | Loans and advances to banks 2,3 | | 2,337 | – | – | – | – | 2,337 | – | 2,337 | | Loans and advances to customers 3 | | 6,585 | – | 30 | – | – | 6,615 | – | 6,615 | | Reverse repurchase agreements | | | | | | | | | | | and other similar secured lending | 15 | – | – | 60,950 | – | – | 60,950 | – | 60,950 | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | 26,724 | – | 3,079 | – | – | 29,803 | – | 29,803 | | Equity shares | | 189 | – | – | – | – | 189 | – | 189 | | Other assets | | – | – | – | – | – | – | – | – | | | | 35,835 | – | 64,059 | – | – | 99,894 | – | 99,894 | | Derivative financial instruments | 13 | 65,804 | 827 | – | – | – | 66,631 | – | 66,631 | | Loans and advances to banks 2,3 | 14 | – | – | – | – | – | – | 11,108 | 11,108 | | of which – reverse repurchase | | | | | | | | | | | agreements and other similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 855 | 855 | | Loans and advances to customers 3 | 14 | – | – | – | – | – | – | 80,091 | 80,091 | | of which – reverse repurchase | | | | | | | | | | | agreements and other similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 6,865 | 6,865 | | Investment securities | | | | | | | | | | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | – | – | – | – | 47,701 | 47,701 | 31,747 | 79,448 | | Equity shares | | – | – | – | – | 236 | 236 | – | 236 | | | | – | – | – | – | 47,937 | 47,937 | 31,747 | 79,684 | | Other assets | 19 | – | – | – | – | – | – | 14,577 | 14,577 | | Assets held for sale | 20 | – | – | – | – | – | – | 227 | 227 | | Total at 31 December 2025 | | 101,639 | 827 | 64,059 | – | 47,937 | 214,462 | 190,098 | 404,560 | 1 Comprises cash held at central banks in restricted accounts of $984 million, or on demand, or placements which are contractually due to mature over-night only. Other placements with central banks are reported as part of Loans and advances to customers. 2 Loans and advances to banks includes amounts due on demand from banks and other central banks. 3 Further analysed in Risk review and Capital review (pages 51 to 52). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 118 ![]() 12. Financial instruments continued | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Assets at fair value | | | | | | | | | | Non-trading | Designated | | | | | | | | | | mandatorily | at fair value | Fair value | Total | Assets | | | | | | Derivatives | at fair value through | | through other | financial | held at | | | | | | held for | through | profit | comprehensive | assets at | amortised | | | | | Trading | hedging | profit or loss | or loss | income | fair value | cost | Total | | Assets | Notes | $million | $million | $million | $million | $million | $million | $million | $million | | Cash and balances at central banks 1 | | – | – | – | – | – | – | 45,233 | 45,233 | | Financial assets held at fair value through profit or loss | | | | | | | | | | | Loans and advances to banks 2,3 | | 1,880 | – | – | – | – | 1,880 | – | 1,880 | | Loans and advances to customers 3 | | 3,247 | – | 29 | – | – | 3,276 | – | 3,276 | | Reverse repurchase agreements | | | | | | | | | | | and other similar secured lending | 15 | 260 | – | 61,881 | – | – | 62,141 | – | 62,141 | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | 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 | | Derivative financial instruments | 13 | 81,534 | 1,310 | – | – | – | 82,844 | – | 82,844 | | Loans and advances to banks 2,3 | 14 | – | – | – | – | – | – | 11,755 | 11,755 | | of which – reverse repurchase | | | | | | | | | | | agreements and other similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 1,423 | 1,423 | | Loans and advances to customers 3 | 14 | – | – | – | – | – | – | 77,597 | 77,597 | | of which – reverse repurchase | | | | | | | | | | | agreements and other similar | | | | | | | | | | | secured lending | 15 | – | – | – | – | – | – | 9,041 | 9,041 | | Investment securities | | | | | | | | | | | Debt securities, alternative tier one | | | | | | | | | | | and other eligible bills | | – | – | – | – | 46,650 | 46,650 | 35,205 | 81,855 | | Equity shares | | – | – | – | – | 246 | 246 | – | 246 | | | | – | – | – | – | 46,896 | 46,896 | 35,205 | 82,101 | | Other assets | 19 | – | – | – | – | – | – | 17,587 | 17,587 | | Assets held for sale | 20 | – | – | – | – | – | – | 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 million, or on demand, or placements which are contractually due to mature over-night only. Other placements with central banks are reported as part of Loans and advances to customers. 2 Loans and advances to banks includes amounts due on demand from banks and other central banks. 3 Further analysed in Risk review and Capital review (pages 51 to 52) . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 119 ![]() 12. Financial instruments continued Group | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Liabilities at fair value | | | | | | | | | Designated | Total | | | | | | | Derivatives | at fair value | financial | | | | | | | held for | through | liabilities at | Amortised | | | | | Trading | hedging | profit or loss | fair value | cost | Total | | Liabilities | Notes | $million | $million | $million | $million | $million | $million | | Financial liabilities held at fair value through profit | | | | | | | | | or loss | | | | | | | | | Deposits by banks | | – | – | 2,118 | 2,118 | – | 2,118 | | Customer accounts | | – | – | 7,213 | 7,213 | – | 7,213 | | Repurchase agreements and other similar | | | | | | | | | secured borrowing | 15 | – | – | 33,660 | 33,660 | – | 33,660 | | Debt securities in issue | 21 | – | – | 14,787 | 14,787 | – | 14,787 | | Short positions | | 7,793 | – | – | 7,793 | – | 7,793 | | | | 7,793 | – | 57,778 | 65,571 | – | 65,571 | | Derivative financial instruments | 13 | 67,740 | 480 | – | 68,220 | – | 68,220 | | Deposits by banks | | – | – | – | – | 25,758 | 25,758 | | Customer accounts | | – | – | – | – | 270,058 | 270,058 | | Repurchase agreements and other similar secured | | | | | | | | | borrowing | 15 | – | – | – | – | 5,186 | 5,186 | | Debt securities in issue | 21 | – | – | – | – | 43,577 | 43,577 | | Other liabilities | 22 | – | – | – | – | 26,306 | 26,306 | | Subordinated liabilities and other borrowed funds | 26 | – | – | – | – | 8,175 | 8,175 | | Liabilities included in disposal groups held for sale | 20 | – | – | – | – | 908 | 908 | | Total at 31 December 2025 | | 75,533 | 480 | 57,778 | 133,791 | 379,968 | 513,759 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Liabilities at fair value | | | | | | | | | Designated | Total | | | | | | | Derivatives | at fair value | financial | | | | | | | held for | through | liabilities at | Amortised | | | | | Trading | hedging | profit or loss | fair value | cost | Total | | Liabilities | Notes | $million | $million | $million | $million | $million | $million | | Financial liabilities held at fair 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 similar | | | | | | | | | secured borrowing | 15 | 925 | – | 32,285 | 33,210 | – | 33,210 | | Debt securities in issue | 21 | – | – | 12,176 | 12,176 | – | 12,176 | | Short positions | | 6,850 | – | – | 6,850 | – | 6,850 | | | | 7,775 | – | 55,154 | 62,929 | – | 62,929 | | Derivative 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 similar secured | | | | | | | | | borrowing | 15 | – | – | – | – | 9,921 | 9,921 | | Debt securities in issue | 21 | – | – | – | – | 39,864 | 39,864 | | Other liabilities | 22 | – | – | – | – | 27,350 | 27,350 | | Subordinated liabilities and other borrowed funds | 26 | – | – | – | – | 10,359 | 10,359 | | Liabilities 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 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 120 ![]() 12. Financial instruments continued Company | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Liabilities at fair value | | | | | | | | | Designated | Total | | | | | | | Derivatives | at fair value | financial | | | | | | | held for | through | liabilities at | Amortised | | | | | Trading | hedging | profit or loss | fair value | cost | Total | | Liabilities | Notes | $million | $million | $million | $million | $million | $million | | Financial liabilities held at fair value through profit | | | | | | | | | or loss | | | | | | | | | Deposits by banks | | – | – | 1,787 | 1,787 | – | 1,787 | | Customer accounts | | – | – | 6,480 | 6,480 | – | 6,480 | | Repurchase agreements and other similar | | | | | | | | | secured borrowing | 15 | – | – | 33,162 | 33,162 | – | 33,162 | | Debt securities in issue | 21 | – | – | 16,561 | 16,561 | – | 16,561 | | Short positions | | 6,890 | – | – | 6,890 | – | 6,890 | | Other liabilities | | – | – | – | – | – | – | | | | 6,890 | – | 57,990 | 64,880 | – | 64,880 | | Derivative financial instruments | 13 | 67,143 | 413 | – | 67,556 | – | 67,556 | | Deposits by banks | | – | – | – | – | 20,607 | 20,607 | | Customer accounts | | – | – | – | – | 132,018 | 132,018 | | Repurchase agreements and other similar secured | | | | | | | | | borrowing | 15 | – | – | – | – | 4,828 | 4,828 | | Debt securities in issue | 21 | – | – | – | – | 37,849 | 37,849 | | Other liabilities | 22 | – | – | – | – | 18,970 | 18,970 | | Subordinated liabilities and other borrowed funds | 26 | – | – | – | – | 8,158 | 8,158 | | Liabilities included in disposal groups held for sale | 20 | – | – | – | – | 147 | 147 | | Total at 31 December 2025 | | 74,033 | 413 | 57,990 | 132,436 | 222,577 | 355,013 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Liabilities at fair value | | | | | | | | | Designated | Total | | | | | | | Derivatives | at fair value | financial | | | | | | | held for | through | liabilities at | Amortised | | | | | Trading | hedging | profit or loss | fair value | cost | Total | | Liabilities | Notes | $million | $million | $million | $million | $million | $million | | Financial liabilities held at fair 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 similar | | | | | | | | | secured borrowing | 15 | 724 | – | 32,156 | 32,880 | – | 32,880 | | Debt securities in issue | 21 | – | – | 12,062 | 12,062 | – | 12,062 | | Short positions | | 6,446 | – | – | 6,446 | – | 6,446 | | Other liabilities | | – | – | – | – | – | – | | | | 7,170 | – | 54,513 | 61,683 | – | 61,683 | | Derivative financial instruments | 13 | 82,064 | 681 | – | 82,745 | – | 82,745 | | Deposits by banks | | – | – | – | – | 17,824 | 17,824 | | Customer accounts | | – | – | – | – | 119,502 | 119,502 | | Repurchase agreements and other similar secured | | | | | | | | | borrowing | 15 | – | – | – | – | 9,845 | 9,845 | | Debt securities in issue | 21 | – | – | – | – | 36,081 | 36,081 | | Other liabilities | 22 | – | – | – | – | 21,124 | 21,124 | | Subordinated liabilities and other borrowed funds | 26 | – | – | – | – | 9,801 | 9,801 | | Liabilities included in disposal groups held for sale | 20 | – | – | – | – | – | – | | Total at 31 December 2024 | | 89,234 | 681 | 54,513 | 144,428 | 214,177 | 358,605 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 121 ![]() 12. Financial instruments continued Offsetting of financial instruments Financial assets and liabilities 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 intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. In practice, for credit mitigation, the Group is able to offset assets and liabilities which do not meet the IAS 32 netting criteria set out below. Such arrangements include master netting arrangements for derivatives 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 addition, the Group also receives and pledges readily realisable collateral for derivative transactions 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 liquid assets which can be sold in the event of a default. The following tables set out the impact of netting on the balance sheet. This comprises derivative transactions settled through an enforceable netting agreement where we have the intent and ability to settle net and which are offset on the balance sheet. Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | | | | Net amounts | Related amount not offset | | | | | Gross amounts | | of financial | in the balance sheet | | | | | of recognised | Impact of | instruments | | | | | | financial | offset in the | presented in the | Financial | Financial | | | | instruments | balance sheet | balance sheet | collateral | instruments | Net amount | | | $million | $million | $million | $million | $million | $million | | As at 31 December 2025 | | | | | | | | Derivative financial instruments | 77,650 | (11,171) | 66,479 | (12,912) | (50,816) | 2,751 | | Reverse repurchase agreements and other similar secured lending | 142,210 | (64,836) | 77,374 | (77,374) | – | – | | Total Assets | 219,860 | (76,007) | 143,853 | (90,286) | (50,816) | 2,751 | | Derivative financial instruments | 79,391 | (11,171) | 68,220 | (10,790) | (50,816) | 6,614 | | Repurchase agreements and other similar | | | | | | | | secured borrowing | 103,682 | (64,836) | 38,846 | (38,846) | – | – | | Total Liabilities | 183,073 | (76,007) | 107,066 | (49,636) | (50,816) | 6,614 | | As at 31 December 2024 | | | | | | | | Derivative financial instruments | 98,176 | (15,459) | 82,717 | (12,984) | (65,027) | 4,706 | | Reverse repurchase agreements and other similar secured lending | 115,927 | (38,314) | 77,613 | (77,613) | – | – | | Total Assets | 214,103 | (53,773) | 160,330 | (90,597) | (65,027) | 4,706 | | Derivative financial instruments | 98,036 | (15,459) | 82,577 | (9,181) | (65,027) | 8,369 | | Repurchase agreements and other similar | | | | | | | | secured borrowing | 81,445 | (38,314) | 43,131 | (43,131) | – | – | | Total Liabilities | 179,481 | (53,773) | 125,708 | (52,312) | (65,027) | 8,369 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 122 ![]() 12. Financial instruments continued Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | | | | Net amounts | Related amount not offset | | | | | Gross amounts | | of financial | in the balance sheet | | | | | of recognised | Impact of | instruments | | | | | | financial | offset in the | presented in the | Financial | Financial | | | | instruments | balance sheet | balance sheet | collateral | instruments | Net amount | | | $million | $million | $million | $million | $million | $million | | As at 31 December 2025 | | | | | | | | Derivative financial instruments | 77,802 | (11,171) | 66,631 | (12,063) | (52,411) | 2,157 | | Reverse repurchase agreements and other similar secured lending | 132,907 | (64,237) | 68,670 | (68,670) | – | – | | Total Assets | 210,709 | (75,408) | 135,301 | (80,733) | (52,411) | 2,157 | | Derivative financial instruments | 78,727 | (11,171) | 67,556 | (9,239) | (52,411) | 5,906 | | Repurchase agreements and other similar | | | | | | | | secured borrowing | 102,227 | (64,237) | 37,990 | (37,990) | – | – | | Total Liabilities | 180,954 | (75,408) | 105,546 | (47,229) | (52,411) | 5,906 | | As at 31 December 2024 | | | | | | | | Derivative financial instruments | 98,303 | (15,459) | 82,844 | (11,788) | (67,030) | 4,026 | | Reverse repurchase agreements and other similar secured lending | 110,919 | (38,314) | 72,605 | (72,605) | – | – | | Total Assets | 209,222 | (53,773) | 155,449 | (84,393) | (67,030) | 4,026 | | Liabilities | | | | | | | | Derivative financial instruments | 98,204 | (15,459) | 82,745 | (8,196) | (67,030) | 7,519 | | Repurchase agreements and other similar | | | | | | | | secured borrowing | 81,039 | (38,314) | 42,725 | (42,725) | – | – | | Total Liabilities | 179,243 | (53,773) | 125,470 | (50,921) | (67,030) | 7,519 | Related amounts not offset in the balance sheet comprises: • Financial instruments not offset in the balance sheet but covered by an enforceable netting arrangement. This comprises master netting arrangements held against derivative financial instruments and excludes the effect of over-collateralisation • Financial instruments where a legal opinion evidencing enforceability of the right of offset may not have been sought, or may have been unable to such opinion • Financial collateral comprises cash collateral pledged and received for derivative financial instruments and collateral bought and sold for reverse repurchase and repurchase agreements respectively and excludes the effect of over-collateralisation Financial liabilities designated at fair value through profit or loss | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Carrying Balance aggregate fair value | 57,778 | 55,154 | | Amount Contractually obliged to repay at maturity | 57,591 | 55,474 | | Difference between aggregate fair value and contractually obliged to repay at maturity | 187 | (320) | | Cumulative change in Fair Value accredited to Credit Risk Difference | (229) | (182) | The net fair value loss on financial liabilities designated at fair value through profit or loss was $3,568 million for the year (31 December 2024: net loss of $3,162 million). Further details of the Group’s own credit adjustment (OCA) valuation technique is described later in this note. Valuation of financial instruments The Valuation Methodology function is responsible for independent price verification, oversight of fair value and appropriate value adjustments and escalation of valuation issues. Independent price verification is the process of determining that the valuations incorporated into the financial statements are validated independent of the business area responsible for the product. The Valuation Methodology function has oversight of the fair value adjustments to ensure the financial instruments are priced to exit. These are key controls in ensuring the material accuracy of the valuations incorporated in the financial statements. The market data used for price verification (PV) may include data sourced from recent trade data involving external counterparties or third parties such as Bloomberg, Reuters, brokers and consensus pricing providers. The Valuation Methodology function performs an ongoing review of the market data sources that are used as part of the PV and fair value processes which are formally documented on a semi-annual basis detailing the suitability of the market data used for price testing. Price verification uses independently sourced data that is deemed most representative of the market the instruments trade in. To determine the quality of the market data inputs, factors such as independence, relevance, reliability, availability of multiple data sources and methodology employed by the pricing provider are taken into consideration. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 123 ![]() 12. Financial instruments continued The Valuation and Benchmarks Committee (VBC) is the valuation governance forum consisting of representatives from Traded Risk Management, Product Control, Valuation Methodology and the business, which meets monthly to discuss and approve the independent valuations of the inventory. For Strategic Investments and Principal Finance, the respective Valuation Forums and Investment Committee meetings are held on a quarterly basis to review investments and valuations. The Group evaluates the significance of financial instruments and material accuracy of the valuations incorporated in the financial statements as they involve a high degree of judgement and estimation uncertainty in determining the carrying values of financial assets and liabilities at the balance sheet date. Significant accounting estimates The significant accounting estimates include: • Fair value of financial instruments is determined using valuation techniques and estimates which, to the extent possible, use market observable inputs, but in some cases use non-market observable inputs. Changes in the observability of significant valuation inputs can materially affect the fair values of financial instruments • When establishing the exit price of a financial instrument using a valuation technique, the Group estimates valuation adjustments in determining the fair value. Significant accounting judgements The significant accounting judgements include: • In determining the valuation of financial instruments, the Group makes judgements on the amounts reserved to cater for model and valuation risks, which cover both Level 2 and Level 3 assets, and the significant valuation judgements in respect of Level 3 instruments • Where the estimated measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based on models that use a significant degree of non-market-based unobservable inputs. Valuation techniques Refer to the fair value hierarchy explanation – Level 1, 2 and 3 (page 127) • Financial instruments held at fair value – Debt securities – asset-backed securities: Asset-backed securities are valued based on external prices obtained from consensus pricing providers, broker quotes, recent trades, arrangers’ quotes, etc. Where an observable price is available for a given security, it is classified as Level 2. In instances where third-party prices are not available or reliable, the security is classified as Level 3. The fair value of Level 3 securities is estimated using market standard cash flow models with input parameter assumptions which include prepayment speeds, default rates, discount margins derived from comparable securities with similar vintage, collateral type, and credit ratings. – Debt securities in issue: These debt securities relate to structured notes issued by the Group. Where independent market data is available through pricing vendors and broker sources these positions are classified as Level 2. Where such liquid external prices are not available, valuations of these debt securities are implied using input parameters such as bond spreads and credit spreads, and are classified as Level 3. These input parameters are determined with reference to the same issuer (if available) or proxies from comparable issuers or assets. – Derivatives: Derivative products are classified as Level 2 if the valuation of the product is based upon input parameters which are observable from independent and reliable market data sources. Derivative products are classified as Level 3 if there are significant valuation input parameters which are unobservable in the market, such as products where the performance is linked to more than one underlying variable. Examples are commodity crack swaption, equity options based on the performance of two or more underlying indices and interest rate products with quanto payouts. In most cases these unobservable correlation parameters cannot be implied from the market, and methods such as historical analysis and comparison with historical levels or other benchmark data must be employed. – Equity shares – unlisted equity investments Valuation of unlisted equity instruments is determined using commonly accepted valuation techniques considered most appropriate to the investment, which may include the market approach, income approach or asset-based approach, depending on the underlying fact patterns and circumstances. All unlisted equity instruments are classified as Level 3, except for those where observable inputs are available (e.g. over-the-counter prices), as the valuation techniques applied generally involve unobservable inputs that requirement significant judgment, which include valuation multiples, discount rates, forecasted cash flows, etc. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 124 12. Financial instruments continued – Loans and advances: These primarily include loans in the FM Bond and Loan Syndication business which were not fully syndicated as at the balance sheet date and other financing transactions within Financial Markets, and loans and advances including reverse repurchase agreements that do not have SPPI cashflows or are managed on a fair value basis. Where available, loan valuation is based on observable clean sales transactions prices or market observable spreads. If observable credit spreads are not available, proxy spreads based on comparables with similar credit grade, sector and region, are used. Where observable transaction prices, credit spreads and market standard proxy methods are available, these loans are classified as Level 2. Where there are no recent transactions or comparables, these loans are classified as Level 3. – Other debt securities: These debt securities include convertible bonds, corporate bonds, credit and structured notes. Where quoted prices are available through pricing vendors, brokers or observable trading activities from liquid markets, these are classified as Level 2 and valued using such quotes. Where there are significant valuation inputs which are unobservable in the market, due to illiquid trading or the complexity of the product, these are classified as Level 3. The valuations of these debt securities are implied using input parameters such as bond spreads and credit spreads. These input parameters are determined with reference to the same issuer (if available) or proxied from comparable issuers or assets. • Financial instruments held at amortised cost The following sets out the Group’s basis for establishing fair values of amortised cost financial instruments and their classification between Levels 1, 2 and 3. As certain categories of financial instruments are not actively traded, there is a significant level of management judgement involved in calculating the fair values: – Cash and balances at central banks: The fair value of cash and balances at central banks is their carrying amounts – Debt securities in issue, subordinated liabilities and other borrowed funds: The aggregate fair values are calculated based on quoted market prices. For those notes where quoted market prices are not available, a discounted cash flow model is used based on a current market related yield curve appropriate for the remaining term to maturity – Deposits and borrowings: The estimated fair value of deposits with no stated maturity is the amount repayable on demand. The estimated fair value of fixed interest-bearing deposits and other borrowings without quoted market prices is based on discounted cash flows using the prevailing market rates for debts with a similar Credit Risk and remaining maturity – Investment securities: For investment securities that do not have directly observable market values, the Group utilises a number of valuation techniques to determine fair value. Where available, securities are valued using input proxies from the same or closely related underlying (for example, bond spreads from the same or closely related issuer) or input proxies from a different underlying (for example, a similar bond but using spreads for a particular sector and rating). Certain instruments cannot be proxies as set out above, and in such cases the positions are valued using non-market observable inputs. This includes those instruments held at amortised cost and predominantly relates to asset-backed securities. The fair value for such instruments is usually proxies from internal assessments of the underlying cash flows – Loans and advances to banks and customers: For loans and advances to banks, the fair value of floating rate placements and overnight deposits is their carrying amounts. The estimated fair value of fixed interest-bearing deposits is based on discounted cash flows using the prevailing money market rates for debts with a similar Credit Risk and remaining maturity. The Group’s loans and advances to customers portfolio is well diversified by geography and industry. Approximately a quarter of the portfolio re-prices within one month, and approximately half re-prices within 12 months. Loans and advances are presented net of provisions for impairment. The fair value of loans and advances to customers with a residual maturity of less than one year generally approximates the carrying value. The estimated fair value of loans and advances with a residual maturity of more than one year represents the discounted amount of future cash flows expected to be received, including assumptions relating to prepayment rates and Credit Risk. Expected cash flows are discounted at current market rates to determine fair value. The Group has a wide range of individual instruments within its loans and advances portfolio and as a result providing quantification of the key assumptions used to value such instruments is impractical – Other assets: Other assets comprise primarily cash collateral and trades pending settlement. The carrying amount of these financial instruments is considered to be a reasonable approximation of fair value as they are either short-term in nature or re-price to current market rates frequently. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 125 ![]() 12. Financial instruments continued Fair value adjustments When establishing the exit price of a financial instrument using a valuation technique, the Group considers adjustments to the modelled price which market participants would make when pricing that instrument. The main valuation adjustments (described further below) in determining fair value for financial assets and financial liabilities are as follows: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | Movement | | | Movement | | | | 01.01.25 | during the year | 31.12.25 | 01.01.24 | during the year | 31.12.24 | | | $million | $million | $million | $million | $million | $million | | Bid-offer valuation adjustment | 93 | 5 | 98 | 91 | 2 | 93 | | Credit valuation adjustment | 95 | 3 | 98 | 98 | (3) | 95 | | Debit valuation adjustment | (98) | 29 | (69) | (118) | 20 | (98) | | Model valuation adjustment | 5 | (2) | 3 | 4 | 1 | 5 | | Funding valuation adjustment | 31 | 8 | 39 | 36 | (5) | 31 | | Other fair value adjustments | 19 | 1 | 20 | 20 | (1) | 19 | | Total | 145 | 44 | 189 | 131 | 14 | 145 | | Income deferrals | | | | | | | | Day 1 and other deferrals | 81 | 11 | 92 | 63 | 18 | 81 | | Total | 81 | 11 | 92 | 63 | 18 | 81 | 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 neutralising the business’ positions through dealing away in the market, thereby bringing long positions to bid and short positions to offer. The methodology to calculate the bid-offer adjustment for a derivative portfolio involves netting between long and short positions and the grouping of risk by strike and tenor based on the hedging strategy where long positions are marked to bid and short positions marked to offer in the systems. • Credit valuation adjustment (CVA): The Group accounts for CVA against the fair value of derivative products. CVA is an adjustment to the fair value of the transactions to reflect the possibility that our counterparties may default and we may not receive the full market value of the outstanding transactions. It represents an estimate of the adjustment a market participant would include when deriving a purchase price to acquire our exposures. CVA is calculated for each subsidiary, and within each entity for each counterparty to which the entity has exposure and takes account of any collateral we may hold. The Group calculates the CVA by using estimates of future positive exposure, market-implied probability of default (PD) and recovery rates. Where market-implied data is not readily available, we use market-based proxies to estimate the PD. Wrong-way risk occurs when the exposure to a counterparty is adversely correlated with the credit quality of that counterparty, and the Group has implemented a model to capture this impact for key wrong-way exposures. The Group also captures the uncertainties associated with wrong-way risk in the Group’s Prudential Valuation Adjustments framework. • Debit valuation adjustment (DVA): The Group calculates DVA adjustments on its derivative liabilities to reflect changes in its own credit standing. The Group’s DVA adjustments will increase if its credit standing worsens and, conversely, decrease if its credit standing improves. For derivative liabilities, a DVA adjustment is determined by applying the Group’s probability of default to the Group’s negative expected exposure against the counterparty. The Group’s probability of default and loss expected in the event of default is derived based on bond and CDS spreads associated with the Group’s issuances and market standard recovery levels. The expected exposure is modelled based on the simulation of the underlying risk factors over the expected life of the deal. This simulation methodology incorporates the collateral posted by the Group and the effects of master netting agreements. • Model valuation adjustment: Valuation models may have pricing deficiencies or limitations that require a valuation adjustment. These pricing deficiencies or limitations arise due to the choice, implementation and calibration of the pricing model. • Funding valuation adjustment (FVA): The Group makes FVA adjustments against derivative products, including embedded derivatives. FVA reflects an estimate of the adjustment to its fair value that a market participant would make to incorporate funding costs or benefits that could arise in relation to the exposure. FVA is calculated by determining the net expected exposure at a counterparty level and then applying a funding rate to those exposures that reflect the market cost of funding. The FVA for uncollateralised (including partially collateralised) derivatives incorporates the estimated present value of the market funding cost or benefit associated with funding these transactions. • Other fair value adjustments: For certain products, the prices cannot be replicated by usual models or the choice of model inputs can be more subjective. In these circumstances, an adjustment may be necessary to reflect the prices available in the market. In general, where there is a high degree of uncertainty in the valuation (e.g. due to the nature of the trade, model inputs, model selection etc.), an adjustment can be taken to adopt a more conservative value to better reflect the expected exit price. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 126 12. Financial instruments continued • Day one and other deferrals: In certain circumstances the initial fair value is based on a valuation technique which differs to the transaction price at the time of initial recognition. However, these gains can only be recognised when the valuation technique used is based primarily on observable market data. In those cases where the initially recognised fair value is based on a valuation model that uses inputs which are not observable in the market, the difference between the transaction price and the valuation model is not recognised immediately in the income statement. The difference is amortised to the income statement until the inputs become observable, or the transaction matures or is terminated. Other deferrals primarily represent adjustments taken to reflect the specific terms and conditions of certain derivative contracts which affect the termination value at the measurement date. In addition, the Group calculates own credit adjustment (OCA) on its issued debt designated at fair value, including structured notes, in order to reflect changes in its own credit standing. Issued debt is discounted utilising the spread at which similar instruments would be issued or bought back at the measurement date as this reflects the value from the perspective of a market participant who holds the identical item as an asset. OCA measures the difference between the fair value of issued debt as of reporting date and theoretical fair values of issued debt adjusted up or down for changes in own credit spreads from inception date to the measurement date. Under IFRS 9 the change in the OCA component is reported under other comprehensive income. The Group’s OCA reserve will increase if its credit standing worsens in comparison to the inception of the trade and, conversely, decrease if its credit standing improves. The Group’s OCA reserve will reverse over time as its liabilities mature. Fair value hierarchy – financial instruments held at fair value Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels The fair values of quoted financial assets and liabilities in active markets are based on current prices. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets for identical instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor liquidity, fair values have been determined using valuation techniques which, to the extent possible, use market observable inputs, but in some cases use unobservable inputs. Valuation techniques used include discounted cash flow analysis and pricing models and, where appropriate, comparison with instruments that have characteristics similar to those of the instruments held by the Group. Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to the observability of the significant inputs used to determine the fair values. Changes in the observability of significant valuation inputs during the reporting period may result in a transfer of assets and liabilities within the fair value hierarchy. The Group recognises transfers between levels of the fair value hierarchy when there is a significant change in either its principal market or the level of observability of the inputs to the valuation techniques as at the end of the reporting period. • Level 1: Fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Fair value measurements are those with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable. • Level 3: Fair value measurements are those where inputs which could have a significant effect on the instrument’s valuation are not based on observable market data. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 127 ![]() 12. Financial instruments continued The following tables show the classification of financial instruments held at fair value into the valuation hierarchy: Group | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | | Assets | $million | $million | $million | $million | $million | $million | $million | $million | | Financial instruments held at fair value through profit or loss | | | | | | | | | | Loans and advances to banks | – | 2,435 | – | 2,435 | – | 2,033 | – | 2,033 | | Loans and advances to customers | – | 6,523 | 2,422 | 8,945 | – | 2,633 | 1,356 | 3,989 | | Reverse repurchase agreements and other similar secured lending | – | 62,972 | 3,354 | 66,326 | – | 63,047 | 2,556 | 65,603 | | Debt securities and other eligible bills | 16,060 | 25,986 | 1,004 | 43,050 | 13,686 | 16,084 | 863 | 30,633 | | Of which: | | | | | | | | | | Issued by central banks & | | | | | | | | | | governments | 15,572 | 21,055 | – | 36,627 | 13,226 | 12,212 | 9 | 25,447 | | Issued by corporates other than financial institutions 1 | 46 | 1,390 | 109 | 1,545 | 3 | 938 | 355 | 1,296 | | Issued by financial institutions 1 | 442 | 3,541 | 895 | 4,878 | 457 | 2,934 | 499 | 3,890 | | Equity shares | 213 | 6 | 103 | 322 | 1,241 | 9 | 116 | 1,366 | | Derivative financial instruments | 761 | 65,596 | 122 | 66,479 | 448 | 82,122 | 147 | 82,717 | | Of which: | | | | | | | | | | Foreign exchange | 127 | 52,646 | 58 | 52,831 | 201 | 68,511 | 58 | 68,770 | | Interest rate | 39 | 10,026 | 44 | 10,109 | 27 | 11,558 | 78 | 11,663 | | Credit | – | 507 | 16 | 523 | – | 792 | 9 | 801 | | Equity and stock index options | – | 238 | 4 | 242 | – | 204 | 2 | 206 | | Commodity | 595 | 2,179 | – | 2,774 | 220 | 1,057 | – | 1,277 | | Investment securities | | | | | | | | | | Debt securities and other eligible bills | 36,121 | 33,633 | – | 69,754 | 27,696 | 31,117 | – | 58,813 | | Of which: | | | | | | | | | | Issued by central banks & | | | | | | | | | | governments | 25,499 | 18,026 | – | 43,525 | 20,740 | 13,360 | – | 34,100 | | Issued by corporates other than financial institutions 1 | – | 438 | – | 438 | – | 490 | – | 490 | | Issued by financial institutions 1 | 10,622 | 15,169 | – | 25,791 | 6,956 | 17,267 | – | 24,223 | | Equity shares | 12 | 3 | 241 | 256 | 10 | 3 | 250 | 263 | | Total assets at 31 December | 53,167 | 197,154 | 7,246 | 257,567 | 43,081 | 197,048 | 5,288 | 245,417 | | Liabilities | | | | | | | | | | Financial instruments held at fair value through profit or loss | | | | | | | | | | Deposits by banks | – | 2,008 | 110 | 2,118 | – | 1,421 | 50 | 1,471 | | Customer accounts | – | 6,703 | 510 | 7,213 | – | 8,867 | 355 | 9,222 | | Repurchase agreements and other similar secured borrowing | – | 33,660 | – | 33,660 | – | 33,210 | – | 33,210 | | Debt securities in issue | – | 13,693 | 1,094 | 14,787 | – | 10,983 | 1,193 | 12,176 | | Short positions | 1,217 | 6,500 | 76 | 7,793 | 1,596 | 5,074 | 180 | 6,850 | | Derivative financial instruments | 384 | 67,621 | 215 | 68,220 | 446 | 81,893 | 238 | 82,577 | | Of which: | | | | | | | | | | Foreign exchange | 159 | 53,950 | 21 | 54,130 | 210 | 67,757 | 11 | 67,978 | | Interest rate | 83 | 10,058 | 22 | 10,163 | 14 | 12,216 | 23 | 12,253 | | Credit | – | 1,160 | 117 | 1,277 | – | 996 | 166 | 1,162 | | Equity and stock index options | – | 222 | 54 | 276 | – | 109 | 37 | 146 | | Commodity | 142 | 2,231 | 1 | 2,374 | 222 | 815 | 1 | 1,038 | | Total liabilities at 31 December | 1,601 | 130,185 | 2,005 | 133,791 | 2,042 | 141,448 | 2,016 | 145,506 | 1 Includes covered bonds of $3,008 million (2024: $3,690 million), securities issued by Multilateral Development Banks/International Organisations of $14,401 million (2024: $8,867 million) and State-owned agencies and development banks of $12,128 million (2024: $10,268 million). The fair value of financial assets and financial liabilities classified as Level 2 in the fair value hierarchy that are subject to complex modelling techniques is $145 million (2024: $512 million) and $157 million (2024: $180 million) respectively. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 128 ![]() 12. Financial instruments continued There were no significant changes to valuation or levelling approaches in 2025. There were no significant transfers of financial assets and liabilities measured at fair value between Level 1 and Level 2 during the year Company | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | | Assets | $million | $million | $million | $million | $million | $million | $million | $million | | Financial instruments held at fair value through profit or loss | | | | | | | | | | Loans and advances to banks | – | 2,337 | – | 2,337 | – | 1,880 | – | 1,880 | | Loans and advances to customers | – | 5,746 | 869 | 6,615 | – | 2,414 | 862 | 3,276 | | Reverse repurchase agreements and other similar secured lending | – | 57,913 | 3,037 | 60,950 | – | 59,942 | 2,199 | 62,141 | | Debt securities and other eligible bills | 7,147 | 22,155 | 501 | 29,803 | 7,505 | 12,078 | 242 | 19,825 | | Of which: | | | | | | | | | | Issued by central banks & | | | | | | | | | | governments | 6,807 | 15,690 | – | 22,497 | 7,112 | 7,281 | – | 14,393 | | Issued by corporates other than financial institutions 1 | 41 | 1,008 | 89 | 1,138 | 3 | 694 | 141 | 838 | | Issued by financial institutions 1 | 299 | 5,457 | 412 | 6,168 | 390 | 4,103 | 101 | 4,594 | | Equity shares | 188 | 1 | – | 189 | 1,218 | 9 | – | 1,227 | | Derivative financial instruments | 779 | 65,755 | 97 | 66,631 | 484 | 82,230 | 130 | 82,844 | | Of which: | | | | | | | | | | Foreign exchange | 145 | 52,674 | 38 | 52,857 | 238 | 68,497 | 47 | 68,782 | | Interest rate | 39 | 10,215 | 40 | 10,294 | 27 | 11,788 | 72 | 11,887 | | Credit | – | 430 | 16 | 446 | – | 614 | 9 | 623 | | Equity and stock index options | – | 10 | 3 | 13 | – | 97 | 2 | 99 | | Commodity | 595 | 2,426 | – | 3,021 | 219 | 1,234 | – | 1,453 | | Investment securities | | | | | | | | | | Debt securities and other eligible bills | 18,204 | 29,497 | – | 47,701 | 18,882 | 27,768 | – | 46,650 | | Of which: | | | | | | | | | | Issued by central banks & | | | | | | | | | | governments | 7,902 | 13,985 | – | 21,887 | 12,419 | 9,475 | – | 21,894 | | Issued by corporates other than financial institutions 1 | – | 438 | – | 438 | – | 490 | – | 490 | | Issued by financial institutions 1 | 10,302 | 15,074 | – | 25,376 | 6,463 | 17,803 | – | 24,266 | | Equity shares | 12 | 2 | 222 | 236 | 10 | 3 | 233 | 246 | | Total assets at 31 December | 26,330 | 183,406 | 4,726 | 214,462 | 28,099 | 186,324 | 3,666 | 218,089 | | Liabilities | | | | | | | | | | Financial instruments held at fair value through profit or loss | | | | | | | | | | Deposits by banks | – | 1,689 | 98 | 1,787 | – | 1,413 | 50 | 1,463 | | Customer accounts | – | 6,226 | 254 | 6,480 | – | 8,580 | 252 | 8,832 | | Repurchase agreements and other similar secured borrowing | – | 33,162 | – | 33,162 | – | 32,880 | – | 32,880 | | Debt securities in issue | – | 15,481 | 1,080 | 16,561 | – | 10,932 | 1,130 | 12,062 | | Short positions | 930 | 5,886 | 74 | 6,890 | 1,413 | 4,853 | 180 | 6,446 | | Derivative financial instruments | 389 | 67,075 | 92 | 67,556 | 472 | 82,183 | 90 | 82,745 | | Of which: | | | | | | | | | | Foreign exchange | 164 | 53,698 | 43 | 53,905 | 236 | 68,193 | 27 | 68,456 | | Interest rate | 83 | 10,371 | 22 | 10,476 | 14 | 12,453 | 23 | 12,490 | | Credit | – | 793 | 2 | 795 | – | 703 | 16 | 719 | | Equity and stock index options | – | 21 | 24 | 45 | – | 16 | 23 | 39 | | Commodity | 142 | 2,192 | 1 | 2,335 | 222 | 818 | 1 | 1,041 | | Total liabilities at 31 December | 1,319 | 129,519 | 1,598 | 132,436 | 1,885 | 140,841 | 1,702 | 144,428 | 1 Includes covered bonds of $3,008 million (2024: $3,608 million), securities issued by Multilateral Development Banks/International Organisations of $13,769 million (2024: $8,479 million) and State-owned agencies and development banks of $11,838 million (2024: $9,883 million). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 129 ![]() 12. Financial instruments continued The fair value of financial assets and financial liabilities classified as Level 2 in the fair value hierarchy that are subject to complex modelling techniques is $10 million (2024: $105 million) and $93 million (2024: $124 million) respectively. There were no significant changes to valuation or levelling approaches in 2025. There were no significant transfers of financial assets and liabilities measured at fair value between Level 1 and Level 2 during the year. Fair value hierarchy – financial instruments measured at amortised cost The following table shows the carrying amounts and incorporates the Group’s estimate of fair values of those financial assets and liabilities not presented on the Group’s balance sheet at fair value. These fair values may be different from the actual amount that will be received or paid on the settlement or maturity of the financial instrument. For certain instruments, the fair value may be determined using assumptions for which no observable prices are available. Group | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | 2024 | | | | | Carrying | | Fair value | | | Carrying | | Fair value | | | | | value | Level 1 | Level 2 | Level 3 | Total | value | Level 1 | Level 2 | Level 3 | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Assets | | | | | | | | | | | | Cash and balances at central | | | | | | | | | | | | banks 1 | 64,943 | – | 64,943 | – | 64,943 | 56,665 | – | 56,665 | – | 56,665 | | Loans and advances to banks | 24,771 | – | 24,745 | 37 | 24,782 | 22,941 | – | 22,780 | 162 | 22,942 | | of which – reverse repurchase | | | | | | | | | | | | agreements and other similar | | | | | | | | | | | | secured lending | 3,698 | – | 3,707 | – | 3,707 | 2,889 | – | 2,892 | – | 2,892 | | Loans and advances to customers | 159,254 | – | 21,176 | 138,367 | 159,543 | 158,242 | – | 35,308 | 125,075 | 160,383 | | of which – reverse repurchase | | | | | | | | | | | | agreements and other similar | | | | | | | | | | | | secured lending | 7,350 | – | 7,350 | – | 7,350 | 9,121 | – | 9,121 | – | 9,121 | | Investment securities 2 | 33,911 | – | 34,492 | – | 34,492 | 37,366 | – | 35,512 | 24 | 35,536 | | Other assets¹ | 20,435 | – | 20,435 | – | 20,435 | 21,535 | – | 21,535 | – | 21,535 | | Assets held for sale | 909 | 74 | 45 | 790 | 909 | 866 | 58 | 335 | 473 | 866 | | At 31 December | 304,223 | 74 | 165,836 | 139,194 | 305,104 | 297,615 | 58 | 172,135 | 125,734 | 297,927 | | Liabilities | | | | | | | | | | | | Deposits by banks | 25,758 | – | 25,758 | – | 25,758 | 22,409 | – | 22,246 | – | 22,246 | | Customer accounts | 270,058 | – | 269,946 | – | 269,946 | 239,204 | – | 238,960 | – | 238,960 | | Repurchase agreements and other similar secured borrowing | 5,186 | – | 5,186 | – | 5,186 | 9,921 | – | 9,921 | – | 9,921 | | Debt securities in issue | 43,577 | 31 | 43,694 | – | 43,725 | 39,864 | – | 39,744 | – | 39,744 | | Subordinated liabilities and other borrowed funds | 8,175 | – | 8,639 | – | 8,639 | 10,359 | – | 10,360 | – | 10,360 | | Other liabilities 1 | 26,306 | – | 26,306 | – | 26,306 | 27,350 | – | 27,350 | – | 27,350 | | Liabilities held for sale | 908 | 147 | 761 | – | 908 | 360 | 89 | 271 | – | 360 | | At 31 December | 379,968 | 178 | 380,290 | – | 380,468 | 349,467 | 89 | 348,852 | – | 348,941 | 1 The carrying amount of these financial instruments is considered to be a reasonable approximation of fair value as they are short-term in nature or reprice to current market rates frequently. 2 Includes Government bonds and Treasury bills of $15,935 million at 31 December 2025 and $14,223 million at 31 December 2024. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 130 ![]() 12. Financial instruments continued Company | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | 2024 | | | | | Carrying | | Fair value | | | Carrying | | Fair value | | | | | value | Level 1 | Level 2 | Level 3 | Total | value | Level 1 | Level 2 | Level 3 | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Assets | | | | | | | | | | | | Cash and balances at central | | | | | | | | | | | | banks 1 | 52,348 | – | 52,348 | – | 52,348 | 45,233 | – | 45,233 | – | 45,233 | | Loans and advances to banks | 11,108 | – | 11,108 | – | 11,108 | 11,755 | – | 11,669 | 87 | 11,756 | | of which – reverse repurchase | | | | | | | | | | | | agreements and other similar | | | | | | | | | | | | secured lending | 855 | – | 855 | – | 855 | 1,423 | – | 1,426 | – | 1,426 | | Loans and advances to customers | 80,091 | – | 9,704 | 70,671 | 80,375 | 77,597 | – | 14,168 | 63,640 | 77,808 | | of which – reverse repurchase | | | | | | | | | | | | agreements and other similar | | | | | | | | | | | | secured lending | 6,865 | – | 6,866 | – | 6,866 | 9,041 | – | 9,041 | – | 9,041 | | Investment securities 2 | 31,747 | – | 30,911 | – | 30,911 | 35,205 | – | 33,387 | – | 33,387 | | Other assets 1 | 14,577 | – | 14,577 | – | 14,577 | 17,587 | – | 17,587 | – | 17,587 | | Assets held for sale | 227 | 74 | 15 | 138 | 227 | 474 | – | – | 474 | 474 | | At 31 December | 190,098 | 74 | 118,663 | 70,809 | 189,546 | 187,851 | – | 122,044 | 64,201 | 186,245 | | Liabilities | | | | | | | | | | | | Deposits by banks | 20,607 | – | 20,607 | – | 20,607 | 17,824 | – | 17,662 | – | 17,662 | | Customer accounts | 132,018 | – | 131,905 | – | 131,905 | 119,502 | – | 119,255 | – | 119,255 | | Repurchase agreements and other similar secured borrowing | 4,828 | – | 4,828 | – | 4,828 | 9,845 | – | 9,845 | – | 9,845 | | Debt securities in issue | 37,849 | – | 37,784 | – | 37,784 | 36,081 | – | 35,938 | – | 35,938 | | Subordinated liabilities and other borrowed funds | 8,158 | – | 8,162 | – | 8,162 | 9,801 | – | 9,801 | – | 9,801 | | Other liabilities 1 | 18,970 | – | 18,970 | – | 18,970 | 21,124 | – | 21,124 | – | 21,124 | | Liabilities held for sale | 147 | 147 | – | – | 147 | – | – | – | – | – | | At 31 December | 222,577 | 147 | 222,256 | – | 222,403 | 214,177 | – | 213,625 | – | 213,625 | 1 The carrying amount of these financial instruments is considered to be a reasonable approximation of fair value as they are short-term in nature or reprice to current market rates frequently. 2 Includes Government bonds and Treasury bills of $14,212 million as at 31 December 2025 and $13,135 million as at 31 December 2024. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 131 ![]() 12. Financial instruments continued Loans and advances to customers by client segment 1 Group | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | | 2024 | | | | | | | Carrying value | | | Fair value | | | Carrying value | | | Fair value | | | | | Stage 1 and | | | Stage 1 and | | | Stage 1 and | | | Stage 1 and | | | | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Corporate & | | | | | | | | | | | | | | Investment | | | | | | | | | | | | | | Banking | 1,189 | 90,210 | 91,399 | 1,195 | 90,366 | 91,561 | 1,047 | 89,345 | 90,392 | 921 | 89,602 | 90,523 | | Wealth & | | | | | | | | | | | | | | Retail Banking | 512 | 52,583 | 53,095 | 510 | 52,826 | 53,336 | 501 | 46,515 | 47,016 | 502 | 48,529 | 49,031 | | Ventures | 7 | 882 | 889 | 7 | 883 | 890 | – | 574 | 574 | – | 573 | 573 | | Central & | | | | | | | | | | | | | | other items | – | 13,871 | 13,871 | – | 13,756 | 13,756 | 98 | 20,162 | 20,260 | 98 | 20,158 | 20,256 | | Total as at | 1,708 | 157,546 | 159,254 | 1,712 | 157,831 | 159,543 | 1,646 | 156,596 | 158,242 | 1,521 | 158,862 | 160,383 | 1 Loans and advances includes reverse repurchase agreements and other similar secured lending: carrying value $7,350 million and fair value $7,350 million (31 December 2024: $9,121 million and $9,121 million respectively). Company | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | | 2024 | | | | | | | | Carrying value | | | Fair value | | | Carrying value | | | Fair value | | | | Stage 1 and | | | Stage 1 and | | | Stage 1 and | | | Stage 1 and | | | | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | Stage 3 | stage 2 | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Corporate & | | | | | | | | | | | | | | Investment | | | | | | | | | | | | | | Banking | 1,006 | 62,472 | 63,478 | 1,004 | 62,624 | 63,628 | 830 | 64,174 | 65,004 | 706 | 64,559 | 65,265 | | Wealth & | | | | | | | | | | | | | | Retail Banking | 249 | 11,848 | 12,097 | 248 | 11,983 | 12,231 | 275 | 11,504 | 11,779 | 275 | 11,454 | 11,729 | | Ventures | – | – | – | – | – | – | – | – | – | – | – | – | | Central & | | | | | | | | | | | | | | other items | – | 4,516 | 4,516 | – | 4,516 | 4,516 | – | 814 | 814 | – | 814 | 814 | | Total as at | 1,255 | 78,836 | 80,091 | 1,252 | 79,123 | 80,375 | 1,105 | 76,492 | 77,597 | 981 | 76,827 | 77,808 | 1 Loans and advances includes reverse repurchase agreements and other similar secured lending: carrying value $6,866 million and fair value $6,866 million (31 December 2024: $9,041 million and $9,041 million respectively). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 132 ![]() 12. Financial instruments continued Fair value of financial instruments Level 3 Summary and significant unobservable inputs The following table presents the Group’s primary Level 3 financial instruments which are held at fair value. The table also presents the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and the weighted average of those inputs: Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | Value as at | | | | | | | 31 December 2025 | | | | | | | | Assets | Liabilities | Principal | Significant | | Weighted | | Instrument | $million | $million | valuation technique | unobservable inputs | Range 1 | average 2 | | Loans and advances to | 2,422 | – | Discounted cash flows | Price/yield | 2.1% – 61.3% | 8.7% | | customers 3 | | | Comparable pricing/yield | Price/yield | 29.4% – 100% | 93.2% | | Reverse repurchase | 3,354 | – | Discounted cash flows | Repo curve | 0.6% – 8.1% | 5.4% | | agreements and other similar secured lending | | | | Price/yield | 4.1% – 25.1% | 11.3% | | Debt securities, alternative | 1,004 | – | Discounted cash flows | Price/yield | 3.1% – 53.8% | 12.6% | | tier one and other eligible | | | | | | | | securities | | | | | | | | Equity shares (includes | 344 | – | Comparable pricing/yield 4 | Price | N/A | N/A | | private equity investments) | | | Discounted cash flows | Discount rates | 9.2% to 25.9% | 12.9% | | | | | Option pricing model | Equity value based on | 5.4x to 23.0x | 11.5x | | | | | | EV/Revenue multiples | | | | | | | | Equity value based on | 3.2x to 3.2x | 3.2x | | | | | | EV/EBITDA multiples | | | | | | | | Equity value based on | 40.0% to 40.0% | 40.0% | | | | | | volatility | | | | Derivative financial | | | | | | | | instruments of which: | | | | | | | | Foreign exchange | 58 | 21 | Option pricing model | Foreign exchange option | 0.4% – 44.6% | 33.1% | | | | | | implied volatility | | | | | | | Discounted cash flows | Interest rate curves | 0.4% – 36.0% | 14.3% | | | | | | Foreign exchange curves | 1.3% – 3.9% | 1.7% | | Commodities | – | 1 | Discounted cash flows | Commodity prices | $0.23 – $341.2 | $62 | | | | | Internal Pricing Model | CM-CM correlation | 59.7% – 97.4% | 78.6% | | Interest rate | 44 | 22 | Discounted cash flows | Interest rate curves | 3.51% – 36.04% | 9.8% | | Credit | 16 | 117 | Discounted cash flows | Credit spreads | 0.9% – 1.0% | 0.9% | | | | | | Price/yield | 5.1% – 25.1% | 9.9% | | | | | Internal Pricing Model | Bond option implied | 5% – 13% | 10.8% | | | | | | volatility | | | | Equity and stock index | 4 | 54 | Internal pricing model | Equity-Equity correlation | 50.8% – 100% | 77.6% | | | | | | Equity-FX correlation | (26.9)% – 46.8% | 6.7% | | Deposits by banks | – | 110 | Discounted cash flows | Price/yield | 4.7% – 6.1% | 5.9% | | Customer accounts | – | 510 | Discounted cash flows | Price/yield | 6.1% – 20.8% | 12.5% | | Debt securities in issue | – | 1,094 | Discounted cash flows | Price/yield | 7.4% – 19.1% | 17.1% | | | | | | Interest rate curves | 3.6% – 36.0% | 15.1% | | | | | Internal pricing model | Equity-Equity correlation | 50.8% – 100% | 77.6% | | | | | | Equity-FX correlation | (26.9)% – 46.8% | 6.7% | | | | | Option pricing model | Bond option implied | 5% – 13% | 10.8% | | | | | | volatility | | | | Short positions | – | 76 | Discounted cash flows | Price/yield | 7.1% – 7.1% | 7.1% | | Total | 7,246 | 2,005 | | | | | 1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 financial instruments as at 31 December 2025. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial instruments. 2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful indicator. 3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield for better representation of material inputs. 4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 133 ![]() 12. Financial instruments continued | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | Value as at | | | | | | | 31 December 2024 | | | | | | | | Assets | Liabilities | Principal | Significant | | Weighted | | Instrument | $million | $million | valuation technique | unobservable inputs | Range 1 | average 2 | | Loans and advances to | 1,356 | – | Discounted cash flows | Price/yield | 1.0% – 26.07% | 6.8% | | customers 3 | | | Comparable pricing/yield | Price | 1.27% – 100% | 92.1% | | Reverse repurchase | 2,556 | – | Discounted cash flows | Repo curve | 2.0% – 7.6% | 6.2% | | agreements and other similar | | | | Price/yield | 5.0% – 10.5% | 6.1% | | secured lending | | | | | | | | Debt securities, alternative | 854 | – | Discounted cash flows | Price/yield | 5.3% – 15.3% | 8.7% | | tier one and other eligible | | | | Recovery rates | 0.01% – 16.3% | 9.2% | | securities | | | | | | | | Government bonds and treasury bills | 9 | – | Discounted cash flows | Price/yield | 23.5% – 23.5% | 23.5% | | Equity shares (includes private | 366 | – | Comparable pricing/yield 4 | Price | N/A | N/A | | equity investments) | | | Discounted cash flows | Discount rates | 9.2% – 20.4% | 12.1% | | | | | Option pricing 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 on | 50.0% – 50.0% | 50.0% | | | | | | volatility | | | | Derivative financial | | | | | | | | instruments of which: | | | | | | | | Foreign exchange | 58 | 11 | Option pricing model | Foreign exchange option | 10.2% – 46.2% | 42.0% | | | | | | implied volatility | | | | | | | | Interest rate curves | 3.5% – 9.0% | 4.2% | | | | | | Foreign exchange curves | (0.03)% – 34.3% | 6.1% | | Commodities | – | 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 pricing model | Bond option implied | 2.3% – 2.9% | 2.7% | | | | | | volatility | | | | 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 pricing model | Equity-Equity correlation | 44.9% – 100% | 80.0% | | | | | | Equity-FX correlation | (36.4)% – 48.9% | 5.0% | | 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 securities 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 pricing model | Equity-FX correlation | (36.4)% – 48.9% | 5.0% | | | | | Option pricing model | Bond option implied | 4.0% – 15.0% | 12.5% | | | | | | volatility | | | | | | | Discounted cash flows | Price/yield | 5.9% – 12.7% | 6.3% | | Short positions | – | 180 | Discounted cash flows | Price/yield | 5.9% – 12.7% | 6.3% | | Other Liabilities | – | – | Comparable pricing/yield | EV/EBITDA multiples | 3.07x-9.95x | 6.84x | | 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 financial instruments as at 31 December 2024. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial instruments. 2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful indicator. 3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield for better representation of material inputs. 4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 134 ![]() 12. Financial instruments continued Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | Value as at | | | | | | | 31 December 2025 | | | | | | | | Assets | Liabilities | Principal | Significant | | Weighted | | Instrument | $million | $million | valuation technique | unobservable inputs | Range 1 | average 2 | | Loans and advances to | 869 | – | Discounted cash flows | Price/yield | 3.06% – 23.7% | 10.3% | | customers 3 | | | Comparable pricing/Yield | Price/yield | 29.4% – 99.58% | 90.9% | | Reverse repurchase | 3,037 | – | Discounted cash flows | Repo curve | 3.9% – 8.06% | 5.8% | | agreements and other similar | | | | Price/yield | 4.1% – 25.1% | 11.3% | | secured lending | | | | | | | | Debt securities, alternative | 501 | – | Discounted cash flows | Price/yield | 3.06% – 53.79% | 16.5% | | tier one and other eligible | | | | | | | | securities | | | | | | | | Equity shares (includes private | 222 | – | Comparable pricing/yield 4 | Price | N/A | N/A | | equity investments) | | | Discounted cash flows | Discount rates | 25.9% to 25.9% | 25.9% | | Derivative financial | | | | | | | | instruments of which: | | | | | | | | Foreign exchange | 38 | 43 | Option pricing model | Foreign exchange option | 0.35% – 44.6% | 37.7% | | | | | | implied volatility | | | | | | | Discounted cash flows | Interest rate curves | 0.35% – 36.04% | 12.6% | | Commodities | – | 1 | Discounted cash flows | Commodity prices | $0.23 – $341.19 | $62. | | | | | Internal Pricing Model | CM-CM correlation | 59.71% – 97.4% | 78.6% | | Interest rate | 40 | 22 | Discounted cash flows | Interest rate curves | 3.51% – 36.04% | 10.4% | | Credit | 16 | 2 | Discounted cash flows | Credit spreads | 0.86% – 1.02% | 0.9% | | | | | | Price/yield | 5.06% – 25.1% | 15.2% | | | | | Internal Pricing Model | Bond option implied | 5% – 13% | 10.8% | | | | | | volatility | | | | Equity and stock index | 3 | 24 | Internal pricing model | Equity-Equity correlation | 50.76% – 100% | 77.6% | | | | | | Equity-FX correlation | -26.92% – 46.76% | 6.7% | | Deposits by banks | – | 98 | Discounted cash flows | Price/y | 4.72% – 4.72% | 4.7% | | Customer accounts | – | 254 | Discounted cash flows | Price/yield | 8.08% – 20.78% | 15.8% | | Debt securities in issue | – | 1,080 | Discounted cash flows | Price/yield | 16.99% – 16.99% | 17.0% | | | | | | Interest rate curves | 3.58% – 36.04% | 13.4% | | | | | Internal pricing model | Equity-Equity correlation | 50.76% – 100% | 77.6% | | | | | | Equity-FX correlation | -26.92% – 46.76% | 6.7% | | | | | Option pricing model | Bond option implied | 5% – 13% | 10.8% | | | | | | volatility | | | | Short positions | – | 74 | Discounted cash flows | Price/yield | 7.13% – 7.13% | 7.1% | | Total | 4,726 | 1,598 | | | | | 1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 financial instruments as at 31 December 2025. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial instruments. 2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful indicator. 3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield for better representation of material inputs. 4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 135 ![]() 12. Financial instruments continued | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | Value as at | | | | | | | 31 December 2024 | | | | | | | | Assets | Liabilities | Principal | Significant | | Weighted | | Instrument | $million | $million | valuation technique | unobservable inputs | Range 1 | average 2 | | Loans and advances to | 862 | – | Discounted cash flows | Price/yield | 1.8% – 26.1% | 6.4% | | customers 3 | | | Comparable pricing/yield | Price | 26.5% – 100% | 92.7% | | Reverse repurchase | 2,199 | – | Discounted cash flows | Repo curve | 2.0% – 7.6% | 6.7% | | agreements and other similar | | | | Price/yield | 5.0% – 10.5% | 6.1% | | secured lending | | | | | | | | Debt securities, alternative | 242 | – | Discounted cash flows | Price/yield | 5.3% – 15.3% | 11.7% | | tier one and other eligible | | | | Recovery rate | 0.01% – 15.0% | 7.6% | | securities | | | | | | | | Equity shares (includes private | 233 | – | Comparable pricing/yield 4 | Price | N/A | N/A | | equity investments) | | | Discounted cash flows | Discount rates | 12.5% – 20.4% | 19.1% | | | | | Option pricing model | Equity value based on | 6.4x – 6.4x | 6.4x | | | | | | EV/Revenue multiples | | | | Derivative financial | | | | | | | | instruments of which: | | | | | | | | Foreign exchange | 47 | 27 | Option pricing model | Foreign exchange option | 10.2% – 46.2% | 42.0% | | | | | | implied volatility | | | | | | | | Interest rate curves | 3.5% – 7.2% | 4.2% | | | | | | Foreign exchange curves | 0.03% – 34.3% | 6.9% | | Commodities | - | 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 pricing model | Equity-Equity correlation | 44.9% – 100% | 80.0% | | | | | | Equity-FX correlation | (36.4)% – 48.9% | 5.0% | | 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 securities 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 pricing model | Equity-Equity correlation | 44.9% – 100% | 80.0% | | | | | | Equity-FX correlation | (36.4)% – 48.9% | 5.0% | | | | | Option pricing model | Bond option implied | 4.0% – 15.0% | 12.5% | | | | | | volatility | | | | Short position | – | 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 financial instruments as at 31 December 2024. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial instruments. 2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful indicator. 3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield for better representation of material inputs. 4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 136 12. Financial instruments continued The following section describes the significant unobservable inputs identified in the valuation technique table: • Comparable price/yield is a valuation methodology in which the price of a comparable instrument is used to estimate the fair value where there are no direct observable prices. Yield is the interest rate that is used to discount the future cash flows in a discounted cash flow model. Valuation using comparable instruments can be done by calculating an implied yield (or spread over a liquid benchmark) from the price of a comparable instrument, then adjusting that yield (or spread) to derive a value for the instrument. The adjustment should account for relevant differences in the financial instruments such as maturity and/or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable instrument and the instrument being valued in order to establish the value of the instrument (for example, deriving a fair value for a junior unsecured bond from the price of a senior secured bond). An increase in price, in isolation, would result in a favourable movement in the fair value of the asset. An increase in yield, in isolation, would result in an unfavourable movement in the fair value of the asset • Correlation is the measure of how movement in one variable influences the movement in another variable. An equity correlation is the correlation between two equity instruments, 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 specified period • Credit spread represents the additional yield that a market participant would demand for taking exposure to the Credit Risk of an instrument • Discount rate refers to the rate of return used to convert expected cash flows into present value • Equity-FX correlation is the correlation between equity instrument and foreign exchange instrument • EV/EBITDA multiple is the ratio of Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA). EV is the aggregate market capitalisation and debt minus the cash and cash equivalents. An increase in EV/ EBITDA multiple will result in a favourable movement in the fair value of the unlisted firm • EV/Revenue multiple is the ratio of Enterprise Value (EV) to Revenue. An increase in EV/Revenue multiple will result in a favourable movement in the fair value of the unlisted firm • Foreign exchange curves is the term structure for forward rates and swap rates between currency pairs over a specified period • Interest rate curves is the term structure of interest rates and measures of future interest rates at a particular point in time • Recovery rates is the expectation of the rate of return resulting from the liquidation of a particular loan. As the probability of default increases for a given instrument, the valuation of that instrument will increasingly reflect its expected recovery level assuming default. An increase in the recovery rate, in isolation, would result in a favourable movement in the fair value of the loan • Repo curve is the term structure of repo rates on repos and reverse repos at a particular point in time • Volatility represents an estimate of how much a particular instrument, parameter or index will change in value over time. Generally, the higher the volatility, the more expensive the option will be #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 137 ![]() 12. Financial instruments continued Level 3 movement tables – financial assets The table below analyses movements in Level 3 financial assets carried at fair value. Group | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Held at fair value through profit or loss | | | | Investment securities | | | | | | Reverse | | | | | | | | | | | repurchase | Debt | | | Debt | | | | | | | agreements | securities, | | | securities, | | | | | | | and other | alternative | | | alternative | | | | | Loans and | Loans and | similar | tier one | | Derivative | tier one | | | | | advances to | advances to | secured | and other | Equity | financial | and other | Equity | | | | banks | customers | lending | eligible bills | shares | instruments | eligible bills | shares | Total | | Assets | $million | $million | $million | $million | $million | $million | $million | $million | $million | | At 01 January 2025 | – | 1,356 | 2,556 | 863 | 116 | 147 | – | 250 | 5,288 | | Total gains/(losses) recognised in income statement | – | 23 | (3) | 36 | (9) | (22) | – | – | 25 | | Net trading income | – | 23 | (3) | 36 | (9) | (22) | – | – | 25 | | Other operating income | – | – | – | – | – | – | – | – | – | | Total losses recognised in other comprehensive income (OCI) | – | – | – | – | – | – | – | 49 | 49 | | Fair value through OCI reserve | – | – | – | – | – | – | – | 49 | 49 | | Exchange difference | – | – | – | – | – | – | – | – | – | | Purchases | – | 2,029 | 8,796 | 391 | 13 | 171 | – | 2 | 11,402 | | Sales | – | (601) | (6,941) | (921) | (10) | (114) | – | (60) | (8,647) | | Settlements | – | (180) | (1,054) | (6) | – | (38) | – | – | (1,278) | | Transfers out 1 | – | (803) | – | (280) | (7) | (23) | – | – | (1,113) | | Transfers in 2 | – | 598 | – | 921 | – | 1 | – | – | 1,520 | | Other Movement | – | – | – | – | – | – | – | – | – | | At 31 December 2025 | – | 2,422 | 3,354 | 1,004 | 103 | 122 | – | 241 | 7,246 | | Recognised in the income statement 3 | – | (9) | (3) | 5 | (9) | (17) | – | – | (33) | | 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 gains 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) | 1 Transfers out includes loans and advances, debt securities, alternative tier one and other eligible bills, reverse repurchase agreements and derivative financial instruments where the valuation parameters became observable during the period and were transferred to Level 1 and Level 2. 2 Transfers in primarily relate to loans and advances, debt securities, alternative tier one and other eligible bills, reverse repurchase agreements, equity shares and derivative financial instruments where the valuation parameters become unobservable during the year. 3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of assets. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 138 ![]() 12. Financial instruments continued Level 3 movement tables – financial assets The table below analyses movements in Level 3 financial assets carried at fair value. Company | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Held at fair value through profit or loss | | | | Investment securities | | | | | | Reverse | | | | | | | | | | repurchase | Debt | | Debt | | | | | | | agreements | securities, | | securities, | | | | | | | and other | alternative | | alternative | | | | | Loans and | Loans and | similar | tier one and | Derivative | tier one and | | | | | advances to | advances to | secured | other | financial | other | Equity | | | | banks | customers | lending | eligible bills | instruments | eligible bills | shares | Total | | Assets | $million | $million | $million | $million | $million | $million | $million | $million | | At 01 January 2025 | – | 862 | 2,199 | 242 | 130 | – | 233 | 3,666 | | Total gains/(losses) recognised in income statement | – | 12 | (1) | 26 | (10) | – | – | 27 | | Net trading income | – | 12 | (1) | 26 | (10) | – | – | 27 | | Total losses recognised in other comprehensive income (OCI) | – | – | – | – | – | – | 49 | 49 | | Fair value through OCI reserve | – | – | – | – | – | – | 49 | 49 | | Purchases | – | 781 | 8,795 | 244 | 139 | – | 2 | 9,961 | | Sales | – | (409) | (6,941) | (342) | (114) | – | (62) | (7,868) | | Settlements | – | (158) | (1,015) | (6) | (29) | – | – | (1,208) | | Transfers out 1 | – | (803) | – | (230) | (21) | – | – | (1,054) | | Transfers in 2 | – | 584 | – | 567 | 2 | – | – | 1,153 | | At 31 December 2025 | – | 869 | 3,037 | 501 | 97 | – | 222 | 4,726 | | Recognised in the income statement 3 | – | (16) | (1) | – | – | – | – | (17) | | 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 gains 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) | 1 Transfers out includes loans and advances, debt securities, alternative tier one and other eligible bills, equity shares and derivative financial instruments where the valuation parameters became observable during the period and were transferred to Level 1 and Level 2. 2 Transfers in primarily relate to loans and advances, debt securities, alternative tier one and other eligible bills, equity shares and derivative financial instruments where the valuation parameters become unobservable during the year. 3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of assets. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 139 ![]() 12. Financial instruments continued Level 3 movement tables – financial liabilities | | | | | | | | --- | --- | --- | --- | --- | --- | | Group | | | | | | | | | | Debt | Derivative | | | | Deposits | Customer | securities | financial | | | | by banks | accounts | in issue | instruments | Short positions | | | $million | $million | $million | $million | $million | | At 01 January 2025 | 50 | 355 | 1,193 | 238 | 180 2,016 | | Total losses recognised in income | | | | | | | statement – net trading income | 3 | 12 | 24 | 8 | – 47 | | Issues | 81 | 1,326 | 2,113 | 651 | – 4,171 | | Settlements | (64) | (1,016) | (2,194) | (595) | (104) (3,973) | | Transfers out 1 | – | (230) | (58) | (88) | – (376) | | Transfers in 2 | 40 | 63 | 16 | 1 | – 120 | | At 31 December 2025 | 110 | 510 | 1,094 | 215 | 76 2,005 | | Recognised in the income statement 3 | 3 | 2 | 2 | (13) | – (6) | | 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) | Total $million 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 1 Transfers out during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters became observable during the year and were transferred to Level 2 financial liabilities. 2 Transfers in during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters became unobservable during the year. 3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of liabilities. Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Debt | Derivative | | | | | Deposits | Customer | securities | financial | | | | | by banks | accounts | in issue | instruments | Short positions | Total | | | $million | $million | $million | $million | $million | $million | | At 01 January 2025 | 50 | 252 | 1,130 | 90 | 180 | 1,702 | | Total losses recognised in income | | | | | | | | statement – net trading income | 3 | 8 | 22 | 22 | – | 55 | | Issues | 80 | 768 | 2,037 | 100 | – | 2,985 | | Settlements | (64) | (594) | (2,067) | (90) | (106) | (2,921) | | Transfers out 1 | – | (230) | (58) | (31) | – | (319) | | Transfers in 2 | 29 | 50 | 16 | 1 | – | 96 | | At 31 December 2025 | 98 | 254 | 1,080 | 92 | 74 | 1,598 | | Recognised in the income statement 3 | 3 | – | – | – | – | 3 | | 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 | 1 Transfers out during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters became observable during the year and were transferred to Level 2 financial liabilities. 2 Transfers in during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters become unobservable during the year. 3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of liabilities. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 140 ![]() 12. Financial instruments continued Sensitivities in respect of the fair values of Level 3 assets and liabilities Sensitivity analysis is performed on products with significant unobservable inputs. The Group applies a 10 per cent increase or decrease on the values of these unobservable inputs, to generate a range of reasonably possible alternative valuations. The percentage shift is determined by statistical analysis performed on a set of reference prices based on the composition of the Group’s Level 3 inventory as the measurement date. Favourable and unfavourable changes (which show the balance adjusted for input change) are determined on the basis of changes in the value of the instrument as a result of varying the levels of the unobservable parameters. The Level 3 sensitivity analysis assumes a one-way market move and does not consider offsets for hedges. Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Held at fair value through profit or loss | | | Fair value through other comprehensive income | | | | Favourable | Unfavourable | | Favourable | Unfavourable | | | Net exposure | changes | changes | Net exposure | changes | changes | | | $million | $million | $million | $million | $million | $million | | Financial instruments held at fair value | | | | | | | | Loans and advances | 2,422 | 2,491 | 2,331 | – | – | – | | Reverse Repurchase agreements and other similar secured lending | 3,354 | 3,386 | 3,326 | – | – | – | | Debt securities, alternative tier one and other eligible bills | 1,004 | 1,025 | 985 | – | – | – | | Equity shares | 103 | 113 | 92 | 241 | 265 | 217 | | Derivative financial instruments | (93) | (70) | (115) | – | – | – | | Customer accounts | (510) | (497) | (525) | – | – | – | | Deposits by banks | (110) | (108) | (112) | – | – | – | | Short positions | (76) | (76) | (77) | – | – | – | | Debt securities in issue | (1,094) | (1,017) | (1,171) | – | – | – | | At 31 December 2025 | 5,000 | 5,247 | 4,734 | 241 | 265 | 217 | | Financial instruments held at fair value | | | | | | | | Loans and advances | 1,356 | 1,388 | 1,296 | – | – | – | | Reverse Repurchase agreements and other similar secured lending | 2,556 | 2,591 | 2,521 | – | – | – | | Debt securities, alternative tier one and other eligible bills | 863 | 896 | 831 | – | – | – | | Equity shares | 116 | 127 | 105 | 250 | 275 | 225 | | Derivative financial instruments | (91) | (79) | (105) | – | – | – | | Customer accounts | (355) | (344) | (367) | – | – | – | | Deposits by banks | (50) | (50) | (50) | – | – | – | | Short positions | (180) | (178) | (182) | – | – | – | | Debt securities in issue | (1,193) | (1,134) | (1,252) | – | – | – | | At 31 December 2024 | 3,022 | 3,217 | 2,797 | 250 | 275 | 225 | The reasonably possible alternatives could have increased or decreased the fair values of financial instruments held at fair value through profit or loss and those classified as fair value through other comprehensive income by the amounts disclosed below. | | | | | | | --- | --- | --- | --- | --- | | | | Fair value changes | | | | | Possible increase | | Possible decrease | | | | 2025 | 2024 | 2025 | 2024 | | Financial instruments | $million | $million | $million | $million | | Held at fair value through profit or loss | 246 | 195 | (267) | (225) | | Fair value through other comprehensive income | 24 | 25 | (24) | (25) | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 141 ![]() 12. Financial instruments continued Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Held at fair value through profit or loss | | | Fair value through other comprehensive income | | | | Favourable | Unfavourable | | Favourable | Unfavourable | | | Net exposure | changes | changes | Net exposure | changes | changes | | | $million | $million | $million | $million | $million | $million | | Financial instruments held at fair value | | | | | | | | Loans and advances | 869 | 919 | 811 | – | – | – | | Reverse Repurchase agreements and other similar secured lending | 3,037 | 3,067 | 3,010 | – | – | – | | Debt securities, alternative tier one and other eligible bills | 501 | 515 | 489 | – | – | – | | Equity shares | – | – | – | 222 | 244 | 199 | | Derivative financial instruments | 5 | 22 | (10) | – | – | – | | Customer accounts | (254) | (244) | (265) | – | – | – | | Deposits by banks | (98) | (96) | (99) | – | – | – | | Short positions | (74) | (74) | (75) | – | – | – | | Debt securities in issue | (1,080) | (1,001) | (1,160) | – | – | – | | At 31 December 2025 | 2,906 | 3,108 | 2,701 | 222 | 244 | 199 | | Financial instruments held at fair value | | | | | | | | Loans and advances | 862 | 888 | 819 | – | – | – | | Reverse Repurchase agreements and other similar secured lending | 2,199 | 2,232 | 2,165 | – | – | – | | Debt securities, alternative tier one and other eligible bills | 242 | 247 | 237 | – | – | – | | Equity shares | – | – | – | 233 | 256 | 210 | | Derivative financial instruments | 40 | 52 | 27 | – | – | – | | Customer accounts | (252) | (244) | (261) | – | – | – | | Deposits by banks | (50) | (50) | (50) | – | – | – | | Short positions | (180) | (178) | (182) | – | – | – | | Debt securities in issue | (1,130) | (1,076) | (1,184) | – | – | – | | At 31 December 2024 | 1,731 | 1,871 | 1,571 | 233 | 256 | 210 | The reasonably possible alternatives could have increased or decreased the fair values of financial instruments held at fair value through profit or loss and those classified as fair value through other comprehensive income by the amounts disclosed below. | | | | | | | --- | --- | --- | --- | --- | | | | Fair value changes | | | | | Possible increase | | Possible decrease | | | | 2025 | 2024 | 2025 | 2024 | | Financial instruments | $million | $million | $million | $million | | Held at fair value through profit or loss | 201 | 140 | (206) | (160) | | Fair value through other comprehensive income | 22 | 23 | (23) | (23) | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 142 ![]() 13. Derivative financial instruments Accounting policy Fair values may be obtained from quoted market prices in active markets, recent market transactions, and valuation techniques, including discounted cash flow models and option pricing models, as appropriate. Where the initially recognised fair value of a derivative contract is based on a valuation model that uses inputs which are not observable in the market, it follows the same initial recognition accounting policy as for other financial assets and liabilities. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative. Hedge accounting Under certain conditions, the Group may designate a recognised asset or liability, a firm commitment, highly probable forecast transaction or net investment of a foreign operation into a formal hedge accounting relationship with a derivative that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group has elected to continue applying IAS 39 for hedge accounting. There are three categories of hedge relationships: • Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liabilities 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 liability, 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 inception and on a quarterly basis, whether the derivatives designated in hedge relationships are highly effective in offsetting changes in fair values or cash flows of hedged items. Hedges are considered to be highly effective if all the following criteria are met: • At inception of the hedge and throughout its life, the hedge is prospectively expected to be highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk • Prospective and retrospective effectiveness of the hedge should be within a range of 80–125%. This 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), which 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 probability of occurring and must present an exposure to variations in cash flows that are expected to affect reported profit or loss. Fair value hedge Changes in the fair value of derivatives that are designated 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 liability that are attributable to the hedged risk. If the hedge no longer meets the criteria for hedge accounting, 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 remaining term to maturity of the hedged item. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised immediately in the income statement. For financial assets classified as fair value through other comprehensive income, the hedge accounting adjustment attributable to the hedged risk is included in net trading income to match the hedging derivative . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 143 ![]() 13. Derivative financial instruments continued Cash flow hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedging instruments are initially recognised in other comprehensive income, accumulating in the cash flow hedge reserve within equity. These amounts are subsequently recycled to the income statement in the periods when the hedged item affects profit or loss. Both the derivative fair 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 derivative method, which creates a derivative instrument to serve as a proxy for the hedged transaction. The terms of the hypothetical derivative match the critical terms of the hedged item and it has a fair value of zero at inception. The hypothetical derivative and the actual derivative are regressed to establish the statistical significance of the hedge relationship. Any ineffective portion of the gain or loss on the hedging instrument is recognised in the net trading income immediately. If a cash flow hedge is discontinued, 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 immediately reclassified to profit or loss. Net investment hedge Hedges of net investments are accounted for in a similar manner to cash flow hedges, with gains and losses arising 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 within equity. These amounts remain in equity until the net investment is disposed of. The ineffective portion of the hedges is recognised in the net trading income immediately. The tables below analyse the notional principal amounts and the positive and negative fair values of derivative financial instruments. Notional principal amounts are the amounts of principal underlying the contract at the reporting date. Derivatives Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Notional | | | Notional | | | | | principal | | | principal | | | | | amounts | Assets | Liabilities | amounts | Assets | Liabilities | | Derivatives | $million | $million | $million | $million | $million | $million | | Foreign exchange derivative contracts 1 : | | | | | | | | Forward foreign exchange contracts | 5,982,099 | 41,876 | 42,276 | 5,007,030 | 55,423 | 53,632 | | Currency swaps and options | 1,457,790 | 10,955 | 11,854 | 1,241,536 | 13,347 | 14,346 | | | 7,439,889 | 52,831 | 54,130 | 6,248,566 | 68,770 | 67,978 | | Interest rate derivative contracts: | | | | | | | | Swaps | 10,108,824 | 19,920 | 20,167 | 6,790,635 | 24,809 | 25,007 | | Forward rate agreements and options | 321,508 | 1,321 | 1,083 | 292,625 | 2,283 | 2,678 | | | 10,430,332 | 21,241 | 21,250 | 7,083,260 | 27,092 | 27,685 | | Exchange traded futures and options | 634,982 | 39 | 84 | 375,487 | 30 | 27 | | Credit derivative contracts | 82,463 | 523 | 1,277 | 220,389 | 801 | 1,162 | | Equity and stock index options | 12,958 | 242 | 276 | 7,427 | 206 | 146 | | Commodity derivative contracts | 184,168 | 2,774 | 2,374 | 142,065 | 1,277 | 1,038 | | Gross total derivatives | 18,784,792 | 77,650 | 79,391 | 14,077,194 | 98,176 | 98,036 | | Offset | – | (11,171) | (11,171) | – | (15,459) | (15,459) | | Total derivatives | 18,784,792 | 66,479 | 68,220 | 14,077,194 | 82,717 | 82,577 | 1 Foreign exchange derivative contracts include precious metals derivatives . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 144 ![]() 13. Derivative financial instruments continued Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Notional | | | Notional | | | | | principal | | | principal | | | | | amounts | Assets | Liabilities | amounts | Assets | Liabilities | | Derivatives | $million | $million | $million | $million | $million | $million | | Foreign exchange derivative contracts 1 : | | | | | | | | Forward foreign exchange contracts | 6,117,189 | 42,099 | 42,261 | 5,040,980 | 55,576 | 54,196 | | Currency swaps and options | 1,444,474 | 10,758 | 11,644 | 1,233,628 | 13,206 | 14,260 | | | 7,561,663 | 52,857 | 53,905 | 6,274,608 | 68,782 | 68,456 | | Interest rate derivative contracts: | | | | | | | | Swaps | 10,159,444 | 20,141 | 20,484 | 6,826,162 | 25,053 | 25,248 | | Forward rate agreements and options | 326,751 | 1,284 | 1,078 | 293,160 | 2,263 | 2,674 | | | 10,486,195 | 21,425 | 21,562 | 7,119,322 | 27,316 | 27,922 | | Exchange traded futures and options | 634,982 | 40 | 85 | 375,487 | 30 | 27 | | Credit derivative contracts | 75,850 | 446 | 795 | 213,526 | 623 | 719 | | Equity and stock index options | 1,993 | 13 | 45 | 2,210 | 99 | 39 | | Commodity derivative contracts | 186,156 | 3,021 | 2,335 | 143,982 | 1,453 | 1,041 | | Gross total derivatives | 18,946,839 | 77,802 | 78,727 | 14,129,135 | 98,303 | 98,204 | | Offset | – | (11,171) | (11,171) | – | (15,459) | (15,459) | | Total derivatives | 18,946,839 | 66,631 | 67,556 | 14,129,135 | 82,844 | 82,745 | 1 Foreign exchange derivative contracts include precious metals derivatives. The Group limits exposure to credit losses in the event of default by entering into master netting agreements with certain market counterparties. As required by IAS 32, exposures are only presented net in these accounts where they are subject to legal right of offset and intended to be settled net in the ordinary course of business. The Group applies balance sheet offsetting only in the instance where we are able to demonstrate legal enforceability of the right to offset (e.g. via legal opinion) and the ability and intention to settle on a net basis (e.g. via operational practice) The Group may enter into economic hedges that do not qualify for IAS 39 hedge accounting treatment, including derivative such as interest rate swaps, interest rate futures and cross currency swaps to manage interest rate and currency risks of the Group. These derivatives are measured at fair value, with fair value changes recognised in net trading income: refer to Market risk (page 60). The Derivatives and Hedging sections of the Risk review and Capital review (page 59) explain the Group’s risk management of derivative contracts and application of hedging. Derivatives held for hedging The Group enters into derivative contracts for the purpose of hedging interest rate, currency and structural foreign exchange risks inherent in assets, liabilities and forecast transactions. The table below summarises the notional principal amounts and carrying values of derivatives designated in hedge accounting relationships at the reporting date. Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Notional | | | Notional | | | | | principal | | | principal | | | | | amounts | Assets | Liabilities | amounts | | | | | $million | $million | $million | $million | Assets | Liabilities | | Derivatives designated as fair value hedges: | | | | | | | | Interest rate swaps | 42,671 | 516 | 399 | 42,694 | 639 | 622 | | Currency swaps | 1,954 | 92 | – | 1,035 | – | 56 | | | 44,625 | 608 | 399 | 43,729 | 639 | 678 | | Derivatives designated as cash flow hedges: | | | | | | | | Interest rate swaps | 38,948 | 168 | 40 | 32,651 | 68 | 134 | | Forward foreign exchange contracts | 3,848 | 110 | 31 | 9,173 | 608 | – | | Currency swaps | 644 | 10 | 10 | 2,163 | 114 | 1 | | | 43,440 | 288 | 81 | 43,987 | 790 | 135 | | Derivatives designated as net | | | | | | | | investment hedges: | | | | | | | | Forward foreign exchange contracts | 4,868 | 119 | – | 3,222 | 36 | – | | Total derivatives held for hedging | 92,933 | 1,015 | 480 | 90,938 | 1,465 | 813 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 145 ![]() 13. Derivative financial instruments continued Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Notional | | | Notional | | | | | principal | | | principal | | | | | amounts | Assets | Liabilities | amounts | Assets | Liabilities | | | $million | $million | $million | $million | $million | $million | | Derivatives designated as fair value hedges: | | | | | | | | Interest rate swaps | 40,695 | 513 | 394 | 41,622 | 616 | 621 | | Currency swaps | 193 | 2 | – | – | – | – | | | 40,888 | 515 | 394 | 41,622 | 616 | 621 | | Derivatives designated as cash flow hedges: | | | | | | | | Interest rate swaps | 20,322 | 87 | 19 | 23,611 | 49 | 60 | | Forward foreign exchange contracts | 2,579 | 107 | – | 8,884 | 578 | – | | Currency swaps | – | – | – | 1,231 | 31 | – | | | 22,901 | 194 | 19 | 33,726 | 658 | 60 | | Derivatives designated as net | | | | | | | | investment hedges: | | | | | | | | Forward foreign exchange contracts | 4,839 | 118 | – | 3,222 | 36 | – | | Total derivatives held for hedging | 68,628 | 827 | 413 | 78,570 | 1,310 | 681 | Fair value hedges The Group issues various long-term fixed-rate debt issuances that are measured at amortised cost, including 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 securities such as government and corporate bonds, including some denominated in foreign currency (see Note 12). These assets and liabilities 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 ineffectiveness from fair value hedges is driven by cross-currency basis risk and interest cashflows mismatch between the hedging instruments and underlying hedged items. The amortisation of fair value hedge adjustments for hedged items no longer designated is recognised in net interest income. As at 31 December 2025, the Group held the following interest rate and cross currency swaps as hedging instruments in fair value hedges of interest and currency risk. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 146 ![]() 13. Derivative financial instruments continued Hedging instruments and ineffectiveness Group | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | Change in fair | | | | | Carrying Amount | | value used to | Ineffectiveness | | | | | | calculate hedge | recognised in | | | Notional | Asset | Liability | ineffectiveness² | profit or loss | | Interest rate¹ | $million | $million | $million | $million | $million | | Interest rate swaps – debt securities/subordinated | | | | | | | notes issued | 23,972 | 372 | 340 | 319 | – | | Interest rate swaps – loans and advances to customers | 214 | – | 3 | 1 | – | | Interest rate swaps – debt securities and other eligible bills | 18,485 | 144 | 56 | (319) | (9) | | Interest and currency risk 1 | | | | | | | Cross currency swaps – debt securities/subordinated | | | | | | | notes issued | 1,954 | 92 | – | 141 | – | | Cross currency swaps – debt securities and other eligible bills | – | – | – | – | – | | Total as at 31 December 2025 | 44,625 | 608 | 399 | 142 | (9) | | Interest rate swaps – debt securities/subordinated | | | | | | | notes issued | 28,236 | 199 | 588 | (57) | (4) | | Interest rate swaps – loans and advances to customers | 807 | 1 | 12 | (3) | – | | Interest rate swaps – debt securities and other eligible bills | 13,651 | 439 | 22 | 141 | 2 | | Interest and currency risk¹ | | | | | | | Cross currency swaps – debt securities/subordinated | | | | | | | notes issued | 1,035 | – | 56 | (52) | (1) | | Cross currency swaps – debt securities and other eligible bills | – | – | – | (10) | – | | Total as at 31 December 2024 | 43,729 | 639 | 678 | 19 | (3) | 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 derivatives, with changes in fair value including hedge ineffectiveness recorded within net trading income. 2 This represents a (loss)/gains change in fair value used for calculating hedge ineffectiveness. Hedged items in fair value hedges | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | Cumulative | | | | | | Accumulated amount of fair value | | balance of fair | | | | | | hedge adjustments included in the | Change in the | value adjustments | | | Carrying Amount | | | carrying amount | value used for | from de- | | | | | | | calculating hedge | designated hedge | | | Asset | Liability | Asset | Liability | ineffectiveness 1 | relationships 2 | | | $million | $million | $million | $million | $million | $million | | Debt securities/subordinated notes issued | – | 26,038 | – | 32 | (460) | (164) | | Debt securities and other eligible bills | 18,449 | – | (46) | – | 310 | 73 | | Loans and advances to customers | 214 | – | – | – | (1) | – | | Total as at 31 December 2025 | 18,663 | 26,038 | (46) | 32 | (151) | (91) | | Debt securities/subordinated notes issued | – | 29,845 | – | 503 | 104 | (242) | | Debt securities and other eligible bills | 13,195 | – | (327) | – | (130) | 204 | | Loans and advances to customers | 811 | – | 4 | – | 4 | 4 | | Total as at 31 December 2024 | 14,006 | 29,845 | (323) | 503 | (22) | (34) | 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. 2 This represents a credit/(debit) to the balance sheet value. Income statement impact of fair value hedges | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Change in fair value of hedging instruments | 142 | 19 | | Change in fair value of hedged risks attributable to hedged items | (151) | (22) | | Net ineffectiveness loss to net trading income | (9) | (3) | | Amortisation (loss)/gain to net interest income | (16) | 129 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 147 ![]() 13. Derivative financial instruments continued Hedging instruments and ineffectiveness Company Interest rate¹ | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | Change in fair | | | | | Carrying Amount | | value used to | Ineffectiveness | | | | | | calculate hedge | recognised in | | | Notional | Asset | Liability | ineffectiveness | profit or loss | | | $million | $million | $million | $million | $million | | Interest rate swaps – debt securities/subordinated | | | | | | | notes issued | 23,798 | 372 | 340 | 319 | – | | Interest rate swaps – loans and advances to customers | 149 | – | 3 | 2 | – | | Interest rate swaps – debt securities and other eligible bills | 16,748 | 141 | 51 | (309) | (9) | | Interest and currency risk 1 | | | | | | | Cross currency swaps – debt securities/subordinated | | | | | | | notes issued | 193 | 2 | – | 1 | – | | Cross currency swaps – debt securities and other eligible bills | – | – | – | – | – | | Total as at 31 December 2025 | 40,888 | 515 | 394 | 13 | (9) | | Interest rate swaps – debt securities/subordinated | | | | | | | notes issued | 28,236 | 200 | 588 | (57) | (4) | | Interest rate swaps – loans and advances to customers | 760 | – | 12 | (4) | – | | Interest rate swaps – debt securities and other eligible bills | 12,626 | 416 | 21 | 137 | 2 | | Interest and currency risk 1 | | | | | | | Cross currency swaps – debt securities/subordinated | | | | | | | notes issued | – | – | – | 8 | – | | Cross currency swaps – debt securities and other eligible bills | – | – | – | (10) | – | | Total as at 31 December 2024 | 41,622 | 616 | 621 | 74 | (2) | 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 derivatives, with changes in fair value including hedge ineffectiveness recorded within net trading income. 2 This represents a (loss)/gains change in fair value used for calculating hedge ineffectiveness. Hedged Items in fair value hedges | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | Cumulative | | | | | | Accumulated amount of fair value | | balance of fair | | | | | | hedge adjustments included in the | Change in the | value adjustments | | | Carrying Amount | | | carrying amount | value used for | from de- | | | | | | | calculating hedge | designated hedge | | | Asset | Liability | Asset | Liability | ineffectiveness 1 | relationships 2 | | | $million | $million | $million | $million | $million | $million | | Debt securities/subordinated notes issued | – | 24,183 | – | 114 | (320) | (164) | | Debt securities and other eligible bills | 16,695 | – | (51) | – | 300 | 75 | | Loans and advances to customers | 150 | – | – | – | (2) | – | | Total as at 31 December 2025 | 16,845 | 24,183 | (51) | 114 | (22) | (89) | | Debt securities/subordinated notes issued | – | 28,751 | – | 444 | 45 | (242) | | Debt securities and other eligible bills | 12,192 | – | (314) | – | (125) | 204 | | Loans and advances to customers | 765 | – | 5 | – | 4 | 4 | | Total as at 31 December 2024 | 12,957 | 28,751 | (309) | 444 | (76) | (34) | 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. 2 This represents a credit/(debit) to the balance sheet value. Income statement impact of fair value hedges | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Change in fair value of hedging instruments | 13 | 74 | | Change in fair value of hedged risks attributable to hedged items | (22) | (76) | | Net ineffectiveness loss to net trading income | (9) | (2) | | Amortisation (loss)/gain to net interest income | (16) | 131 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 148 ![]() 13. Derivative financial instruments continued Cash flow hedges The Group has exposure to market movements in future interest cash flows on portfolios of customer accounts, debt securities and loans and advances to customers. The amounts and timing of future cash flows, representing both principal and interest flows, are projected on the basis of contractual terms and other relevant factors, including estimates of prepayments and defaults. The hedging strategy of the Group involves using interest rate swaps to manage the variability in future cash flows on assets and liabilities that have floating rates of interest by exchanging the floating rates for fixed rates. It also uses foreign exchange contracts and currency swaps to manage the variability in future exchange rates on its assets and liabilities 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 relationship with 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 ineffectiveness for cash flow hedges is mainly driven by reset frequency and payment mismatch between the hedging instrument and the underlying hedged item. The hedged risk is determined as the variability of future cash flows arising from changes in the designated benchmark interest and/or foreign exchange rates. Hedging instruments and ineffectiveness Group | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | Ineffectiveness | | | | | | | Change in fair | | gain/(loss) | Amount | | | | | Carrying Amount | value used to | Gain/(loss) | recognised in | reclassified from | | | | | | calculate hedge | recognised in | net trading | reserves to | | | Notional | Asset | Liability | ineffectiveness¹ | OCI | income | income | | | $million | $million | $million | $million | $million | $million | $million | | Interest rate risk | | | | | | | | | Interest rate swaps | 38,948 | 168 | 40 | 172 | 169 | 3 | – | | Currency risk | | | | | | | | | Forward foreign exchange contract | 3,848 | 110 | 31 | (6) | (5) | (1) | – | | Cross currency swaps | 644 | 10 | 10 | (93) | (94) | 1 | – | | Total as at 31 December 2025 | 43,440 | 288 | 81 | 73 | 70 | 3 | – | | 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) | – | 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. Hedged items in cash flow hedges | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | | Cumulative | | | Cumulative | | | | | balance in the | | | balance in the | | | | | cash flow hedge | Change in fair | | cash flow hedge | | | Change in fair | | reserve from | value used for | | reserve from | | | value used for | | de-designated | calculating | | de-designated | | | calculating hedge | Cash flow hedge | hedge | hedges | Cash flow hedge | hedge | | | ineffectiveness 1 | reserve | relationships | ineffectiveness 1 | reserve | relationships | | | $million | $million | $million | $million | $million | $million | | Customer accounts | 15 | 2 | 14 | (82) | (3) | 16 | | Debt securities and other eligible bills | (17) | 1 | – | (7) | (16) | (4) | | Loans and advances to customers | (145) | 156 | (3) | 22 | 32 | (6) | | Intragroup borrowing currency hedge | 77 | – | – | (54) | – | – | | Total as at 31 December | (70) | 159 | 11 | (121) | 13 | 6 | 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 149 ![]() 13. Derivative financial instruments continued Impact of cash flow hedges on profit and loss and other comprehensive income | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Cash flow hedge reserve balance as at 1 January | 8 | (13) | | Gain recognised in other comprehensive income on effective portion of changes in fair value of hedging instruments | 70 | 121 | | Loss/(Gain) reclassified to income statement when hedged item affected net profit | 80 | (89) | | Taxation charge relating to cash flow hedges | (23) | (11) | | Cash flow hedge reserve balance as at 31 December | 135 | 8 | Hedging instruments and ineffectiveness Company | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | Ineffectiveness | | | | | | | Change in fair | | gain/(loss) | Amount | | | | | Carrying Amount | value used to | Gain/(loss) | recognised in | reclassified from | | | | | | calculate hedge | recognised in | net trading | reserves to | | | Notional | Asset | Liability | ineffectiveness¹ | OCI | income | income | | | $million | $million | $million | $million | $million | $million | $million | | Interest rate risk | | | | | | | | | Interest rate swaps | 20,322 | 87 | 19 | 72 | 72 | – | – | | Currency risk | | | | | | | | | Forward foreign exchange contract | 2,579 | 107 | – | (2) | (2) | – | – | | Cross currency swaps | – | – | – | (77) | (77) | – | – | | Total as at 31 December 2025 | 22,901 | 194 | 19 | (7) | (7) | – | – | | 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) | – | 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. Hedged items in cash flow hedges | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | | Cumulative | | | Cumulative | | | | | balance in the | | | balance in the | | | | | cash flow hedge | | | cash flow hedge | | | Change in fair | | reserve from | Change in fair | | reserve from | | | value used for | | de-designated | value used for | | de-designated | | | calculating hedge | Cash flow hedge | hedge | calculating hedge | Cash flow hedge | hedge | | | ineffectiveness¹ | reserve | relationships | ineffectiveness 1 | reserve | relationships | | | $million | $million | $million | $million | $million | $million | | Customer accounts | 11 | 2 | 14 | (81) | (3) | 16 | | Debt securities and other eligible bills | (17) | – | – | (5) | (18) | (4) | | Loans and advances to customers | (64) | 73 | (5) | 6 | 31 | (6) | | Intragroup borrowing currency hedge | 77 | – | – | (54) | – | – | | Total as at 31 December | 7 | 75 | 9 | (134) | 10 | 6 | 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. Impact of cash flow hedges on profit and loss and other comprehensive income | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Cash flow hedge reserve balance as at 1 January | (17) | (51) | | (Loss)/gain recognised in other comprehensive income on effective portion of changes in fair value of hedging instruments | (7) | 134 | | Loss/(gain) reclassified to income statement when hedged item affected net profit | 75 | (88) | | Taxation charge relating to cash flow hedges | (14) | (12) | | Cash flow hedge reserve balance as at 31 December | 37 | (17) | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 150 ![]() 13. Derivative financial instruments continued Net investment hedges Foreign currency exposures arise from investments in subsidiaries that have a different functional currency from that of the presentation currency of the parent. This risk arises from the fluctuation in spot exchange rates between the functional currency of the subsidiaries and the parent’s functional 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 significant impact on the regulatory ratios of the Group and its banking subsidiaries. The Group uses foreign exchange forwards to manage the effect of exchange rates on its net investments in foreign subsidiaries. Hedging instruments and ineffectiveness Group | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Changes in the | | | | | | | | | Change in fair value of the | | | | | | | | Carrying amount | value used to | hedging | Ineffectiveness | Amount | | | | | | calculate hedge | instrument | recognised in | reclassified from | | | Notional | Asset | Liability | ineffectiveness 2 | recognised in OCI | profit or loss | reserves to income | | Derivative forward currency contracts 1 | $million | $million | $million | $million | $million | $million | $million | | As at 31 December 2025 | 4,868 | 119 | – | 75 | 75 | – | – | | As at 31 December 2024 | 3,222 | 36 | – | 44 | 44 | – | – | | | | | | | | | --- | --- | --- | --- | --- | --- | | 1 | These derivative forward currency contracts have a maturity of less than one year. The hedges are rolled on a periodic basis. | | | | | | 2 | This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. | | | | | | Hedged items in net investment hedges | | 2025 | | | 2024 | | | | | Balances | | | | | | | remaining in the | | | | | | | translation reserve | | | translation reserve | | | | from hedging | | | | | | Change in the | relationships for | Change in the | | | | | value used for | which hedge | | | | calculating hedge ineffectiveness¹ $million Translation reserve² $million accounting is no longer applied $million value used for calculating hedge ineffectiveness 1 $million Translation reserve 2 $million Balances remaining in the from hedging relationships for which hedge accounting is no longer applied $million Net investments (75) 118 – (44) 36 – 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. 2 This represents the mark-to-market including accrued interest on live hedges at 31 December. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Gains recognised in other comprehensive income | 75 | 44 | Hedging instruments and ineffectiveness Company | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Changes in the | | | | | | | | | Change in fair value of the | | | | | | | | Carrying amount | value used to | hedging | Ineffectiveness | Amount | | | | | | calculate hedge | instrument | recognised in | reclassified from | | | Notional | Asset | Liability | ineffectiveness 2 | recognised in OCI | profit or loss | reserves to income | | Derivative forward currency contracts 1 | $million | $million | $million | $million | $million | $million | $million | | As at 31 December 2025 | 4,839 | 118 | – | 75 | 75 | – | – | | As at 31 December 2024 | 3,222 | 36 | – | 15 | 15 | – | – | 1 These derivative forward currency contracts have a maturity of less than one year. The hedges are rolled on a periodic basis. 2 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. Hedged items in net investment hedges | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | | Balances | | | Balances | | | | | remaining in the | | | remaining in the | | | | | translation reserve | | | translation reserve | | | | | from hedging | | | from hedging | | | Change in the | | relationships for | Change in the | | relationships for | | | value used for | | which hedge | value used for | | which hedge | | | calculating hedge | Translation | accounting is no | calculating hedge | Translation | accounting is no | | | ineffectiveness 1 | reserve 2 | longer applied | ineffectiveness 1 | reserve 2 | longer applied | | | $million | $million | $million | $million | $million | $million | | Net investments | (75) | 117 | – | (15) | 36 | – | 1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness. 2 This represents the mark-to-market including accrued interest on live hedges at 31 December . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 151 ![]() 13. Derivative financial instruments continued Impact of net investment hedges on other comprehensive income | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Gains recognised in other comprehensive income | 75 | 15 | Maturity of hedging instruments Group | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | 2025 | | | | 2024 | | | | | | More than | | | | More than | | | | | | | one month | | | | one month | | | | | | Less | and less | | | Less | and less | | | | | | than one | than one | One to five | More than | than one | than one | One to five | More than | | Fair value hedges | | month | year | years | five years | month | year | years | five years | | Interest rate swap | | | | | | | | | | | Notional | $million | 285 | 5,340 | 27,768 | 9,278 | 1,300 | 8,850 | 22,506 | 10,038 | | Cross currency swap | | | | | | | | | | | Notional | $million | – | – | 1,954 | – | – | – | 1,035 | – | | Average fixed interest rate (to USD) (%) | EUR | – | – | 2.30 | – | – | – | 2.40 | – | | Average exchange rate | EUR/USD | – | – | 0.90 | – | – | – | 0.91 | – | | Cash flow hedges | | | | | | | | | | | Interest rate swap | | | | | | | | | | | Notional | $million | 1,253 | 11,099 | 25,217 | 1,379 | 2,250 | 13,331 | 15,286 | 1,784 | | Average fixed interest rate (%) | USD | 4.00 | 4.10 | 3.60 | 3.70 | 5.02 | 4.59 | 4.06 | 3.74 | | Cross currency swap | | | | | | | | | | | Notional | $million | – | 538 | 106 | – | 28 | 1,525 | 610 | – | | Average fixed interest rate (%) | INR | – | 10.10 | 10.60 | – | – | 9.19 | 11.41 | – | | | JPY | – | – | – | – | – | 0.08 | – | – | | | BRL | – | 10.90 | – | – | – | – | 10.90 | – | | Average exchange rate | INR/USD | – | 87.60 | 83.01 | – | – | 83.63 | 83.20 | – | | | JPY/USD | – | – | – | – | – | 153.62 | – | – | | | BRL/USD | – | 5.53 | – | – | – | – | 5.53 | – | | Forward foreign exchange contracts | | | | | | | | | | | Notional | $million | 718 | 2,834 | 296 | – | 2,024 | 6,860 | 289 | – | | Average exchange rate | HKD/USD | 7.77 | 7.75 | – | – | – | – | – | – | | | BRL/USD | – | 6.54 | 6.37 | – | – | – | 6.5 | – | | | JPY/USD | 148.75 | 147.10 | – | – | 147.38 | 146.65 | – | – | | Net investment hedges | | | | | | | | | | | Foreign exchange derivatives | | | | | | | | | | | Notional | $million | 4,839 | 29 | – | – | 3,222 | – | – | – | | Average exchange rate | INR/USD | 86.63 | – | – | – | 84.07 | – | – | – | | | AED/USD | 3.67 | – | – | – | 3.67 | – | – | – | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 152 ![]() 13. Derivative financial instruments continued Maturity of hedging instruments Company | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | 2025 | | | | 2024 | | | | | | 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 | $million | 259 | 4,544 | 26,614 | 9,279 | 1,300 | 8,715 | 21,569 | 10,038 | | Cross currency swap | | | | | | | | | | | Notional | $million | – | – | 193 | – | – | – | – | – | | Average fixed interest rate (to USD) | | | | | | | | | | | (%) | HKD | – | – | 2.36 | – | – | – | – | – | | Average exchange rate | HKD/USD | – | – | 7.85 | – | – | – | – | – | | Cash flow hedges | | | | | | | | | | | Interest rate swap | | | | | | | | | | | Notional | $million | 994 | 7,441 | 11,507 | 380 | 2,005 | 11,373 | 9,449 | 784 | | Average fixed interest rate (%) | USD | 4.02 | 4.16 | 3.67 | 3.54 | 5.36 | 4.30 | 4.29 | 3.95 | | Cross currency swap | | | | | | | | | | | Notional | $million | – | – | – | – | – | 1,231 | – | – | | Average fixed interest rate (%) | JPY | – | – | – | – | – | 0.19 | – | – | | Average exchange rate | JPY/USD | – | – | – | – | – | 153.62 | – | – | | Forward foreign exchange contracts | | | | | | | | | | | Notional | $million | 608 | 1,971 | – | – | 2,024 | 6,860 | – | – | | Average exchange rate | INR/USD | – | – | – | – | 147.38 | 145.65 | – | – | | | HKD/USD | 7.77 | – | – | – | – | – | – | – | | | JPY/USD | 148.75 | 147.10 | – | – | – | – | – | – | | Net investment hedges | | | | | | | | | | | Foreign exchange derivatives | | | | | | | | | | | Notional | $million | 4,839 | – | – | – | 3,222 | – | – | – | | Average exchange rate | INR/USD | 86.63 | – | – | – | 84.07 | – | – | – | | | AED/USD | 12.86 | – | – | – | 3.67 | – | – | – | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 153 ![]() 14. Loans and advances to banks and customers Accounting policy Refer to Note 12 Financial instruments for the relevant accounting policy | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Loans and advances to banks | 24,778 | 22,949 | 11,111 | 11,757 | | Expected credit loss | (7) | (8) | (3) | (2) | | | 24,771 | 22,941 | 11,108 | 11,755 | | Loans and advances to customers | 162,055 | 161,141 | 81,769 | 79,392 | | Expected credit loss | (2,801) | (2,899) | (1,678) | (1,795) | | | 159,254 | 158,242 | 80,091 | 77,597 | | Total loans and advances to banks and customers 1 | 184,025 | 181,183 | 91,199 | 89,352 | 1 Includes $2.5 billion (Group) and $0.4 billion (Company) (31 December 2024: $1.8 billion (Group) and $0.6 billion (Company)) of assets pledged as collateral. Analysis of loans and advances to customers by client segments and related impairment provisions as set out within the Risk review and Capital review (page 48). 15. Reverse repurchase and repurchase agreements including other similar lending and borrowing Accounting policy The Group purchases securities (a reverse repurchase agreement – ‘reverse repo’) typically with financial institutions subject to a commitment to resell or return the securities at a predetermined price. These securities 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. Consideration paid (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 the majority 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 securities (a repurchase agreement – ‘repo’) subject to a commitment to repurchase or redeem the securities at a predetermined price. The securities are retained on the balance sheet as the Group retains substantially all the risks and rewards of ownership and these securities are disclosed as pledged collateral. Consideration received (or cash collateral received) is accounted for as a financial liability at amortised cost unless it is either mandatorily classified as fair value through profit or loss or irrevocably designated at fair value through profit or loss at initial recognition. Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets similar to those provided as collateral in the event of a default. Securities sold subject to repos, either by way of a Global Master Repurchase Agreement (GMRA), or through a securities sale and Total Return Swap (TRS) continue to be recognised on the balance sheet as the Group retains substantially the associated risks and rewards of the securities (the TRS is not recognised). Assets sold under repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding. Reverse repurchase agreements and other similar secured lending | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Banks | 33,124 | 30,581 | 26,876 | 26,389 | | Customers | 44,250 | 47,032 | 41,794 | 46,216 | | | 77,374 | 77,613 | 68,670 | 72,605 | | Of which: | | | | | | Fair value through profit or loss | 66,326 | 65,603 | 60,950 | 62,141 | | Banks | 29,426 | 27,692 | 26,021 | 24,966 | | Customers | 36,900 | 37,911 | 34,929 | 37,175 | | Held at amortised cost | 11,048 | 12,010 | 7,720 | 10,464 | | Banks | 3,698 | 2,889 | 855 | 1,423 | | Customers | 7,350 | 9,121 | 6,865 | 9,041 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 154 ![]() 15. Reverse repurchase and repurchase agreements including other similar lending #### andborrowing continued Under reverse repurchase and securities borrowing arrangements, the Group obtains securities on terms which permit it to repledge or resell the securities to others. Amounts on such terms are: | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Securities and collateral received (at fair value) | 79,073 | 81,108 | 69,841 | 75,641 | | Securities and collateral which can be repledged or sold (at fair value) | 76,666 | 80,860 | 68,477 | 75,394 | | Amounts repledged/transferred to others for financing activities, to satisfy liabilities under sale and repurchase agreements (at fair value) | 16,533 | 27,683 | 15,988 | 27,354 | Repurchase agreements and other similar secured borrowing | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Banks | 7,172 | 8,416 | 6,527 | 8,139 | | Customers | 31,674 | 34,716 | 31,463 | 34,586 | | | 38,846 | 43,132 | 37,990 | 42,725 | | Of which: | | | | | | Fair value through profit or loss | 33,660 | 33,211 | 33,162 | 32,880 | | Banks | 5,754 | 7,570 | 5,467 | 7,369 | | Customers | 27,906 | 25,641 | 27,695 | 25,511 | | Held at amortised cost | 5,186 | 9,921 | 4,828 | 9,845 | | Banks | 1,418 | 846 | 1,060 | 770 | | Customers | 3,768 | 9,075 | 3,768 | 9,075 | The tables below set out the financial assets provided as collateral for repurchase and other secured borrowing transactions: Group | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Fair value | | | | | | | Fair value through other | | | | | | through | comprehensive | | Off-balance | | | | profit or loss | income | Amortised cost | sheet | Total | | Collateral pledged against repurchase agreements | $million | $million | $million | $million | $million | | On-balance sheet | | | | | | | Debt securities and other eligible bills | 4,828 | 8,493 | 10,046 | – | 23,367 | | Off-balance sheet | | | | | | | Repledged collateral received | – | – | – | 16,533 | 16,533 | | At 31 December 2025 | 4,828 | 8,493 | 10,046 | 16,533 | 39,900 | | On-balance sheet | | | | | | | Debt securities and other eligible bills | 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 | Company | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Fair value | | | | | | | Fair value through other | | | | | | through | comprehensive | | Off-balance | | | | profit or loss | income | Amortised cost | sheet | Total | | Collateral pledged against repurchase agreements | $million | $million | $million | $million | $million | | On-balance sheet | | | | | | | Debt securities and other eligible bills | 4,665 | 8,359 | 9,998 | – | 23,022 | | Off-balance sheet | | | | | | | Repledged collateral received | – | – | – | 15,988 | 15,988 | | At 31 December 2025 | 4,665 | 8,359 | 9,998 | 15,988 | 39,010 | | On-balance sheet | | | | | | | Debt securities and other eligible bills | 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 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 155 ![]() 16. Goodwill and intangible assets Accounting policy Goodwill Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in Investments in associates and joint ventures. Goodwill included in intangible assets is assessed at each balance sheet date for impairment and carried at cost less any accumulated impairment losses. Gains 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 discounting these at an appropriate discount rate, the determination of which requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impairment testing. CGUs represent the lowest level within the Group which 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 158). Other accounting estimates and judgements The carrying amount of goodwill is based on the application of judgements including the basis of goodwill impairment calculation assumptions. Judgement is also applied in determination of CGUs. Estimates include forecasts used for determining cash flows for CGUs, the appropriate 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 impaired. The estimation of future cash flows and the level to which they are discounted is inherently uncertain and requires significant judgement and is subject to potential change over time. Acquired intangibles At the date of acquisition of a subsidiary or associate, intangible assets which are deemed separable and that arise from contractual or other legal rights are capitalised and included within the net identifiable assets acquired. These intangible assets are initially measured at fair value, which reflects market expectations of the probability 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 indicators of impairment. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount, the asset is written down immediately to the recoverable amount. Computer software Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Internally generated software represents substantially all of the total software capitalised. Direct costs of the development of separately identifiable internally generated software are capitalised 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 immediately when incurred. Internally generated software is amortised over each asset’s useful life to a maximum of 10-years. On an annual basis the residual values and useful lives of software assets, including software under development are reviewed, including assessing for indicators of impairment. Indicators of impairment 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 capitalised software that is internally generated, judgement is required to determine which costs relate to research (expensed) and which costs relate to development (capitalised). Further judgement is required to determine the technical feasibility 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 functionality or improved asset safeguarding. Software as a Service (SaaS) and similar cloud service models is a contractual arrangement that conveys the right to receive access to the supplier’s software application 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, including customisation costs related to implementation of the SaaS may meet the definition of an intangible asset in their own right if it is separately identifiable and control is established. These costs are capitalised 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. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 156 ![]() 16. Goodwill and intangible assets continued Group | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | | Acquired | Computer | | | Acquired | Computer | | | | Goodwill | intangibles | software | Total | Goodwill | intangibles | software | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | | Cost | | | | | | | | | | At 1 January | 1,292 | 128 | 4,480 | 5,900 | 1,299 | 135 | 4,579 | 6,013 | | Exchange translation differences | 9 | 4 | 211 | 224 | (7) | 2 | (86) | (91) | | Additions | – | – | 715 | 715 | – | – | 479 | 479 | | Impairment | – | – | (72)¹ | (72) | – | – | (467) 1,2 | (467) | | Amounts written off | – | – | – | – | – | (9) | (25) | (34) | | At 31 December | 1,301 | 132 | 5,334 | 6,767 | 1,292 | 128 | 4,480 | 5,900 | | Provision for amortisation | | | | | | | | | | At 1 January | – | 122 | 2,004 | 2,126 | – | 115 | 1,688 | 1,803 | | Exchange translation differences | – | 4 | 98 | 102 | – | 4 | (32) | (28) | | Amortisation | – | 4 | 474 | 478 | – | 3 | 455 | 458 | | Impairment charge | – | – | (50)¹ | (50) | – | – | (84) 1,2 | (84) | | Amounts written off | – | – | – | – | – | – | (23) | (23) | | At 31 December | – | 130 | 2,526 | 2,656 | – | 122 | 2,004 | 2,126 | | Net book value | 1,301 | 2 | 2,808 | 4,111 | 1,292 | 6 | 2,476 | 3,774 | 1 The Group has performed its annual review of computer software intangibles to determine instances when carrying value is greater than its recoverable amount and impaired $22 million (31 December 2024: $45 million). 2 During 2024, the Group performed a review of its computer software intangibles which were capitalised as at 31 December 2023, and impaired $338 million of the 2024 net book value due to limitations in the available evidence to support the continued capitalisation of the assets. At 31 December 2025, accumulated goodwill impairment losses incurred from 1 January 2005 amounted to $3,237 million (31 December 2024: $3,237 million), of which Nil was recognised in 2025 (31 December 2024: Nil). Company | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | | Acquired | Computer | | | Acquired | Computer | | | | Goodwill | intangibles | software | Total | Goodwill | intangibles | software | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | | Cost | | | | | | | | | | At 1 January | 72 | 17 | 3,399 | 3,488 | 72 | 28 | 3,568 | 3,668 | | Exchange translation differences | – | 2 | 135 | 137 | – | (1) | (75) | (76) | | Additions | – | – | 521 | 521 | – | – | 246 | 246 | | Impairment | – | – | (49)¹ | (49) | – | – | (327) 1,2 | (327) | | Amounts written off | – | – | – | – | – | (10) | (13) | (23) | | At 31 December | 72 | 19 | 4,006 | 4,097 | 72 | 17 | 3,399 | 3,488 | | Provision for amortisation | | | | | | | | | | At 1 January | – | 16 | 1,484 | 1,500 | – | 17 | 1,292 | 1,309 | | Exchange translation differences | – | 2 | 64 | 66 | – | (1) | (33) | (34) | | Amortisation | – | – | 319 | 319 | – | – | 305 | 305 | | Impairment charge | – | – | (33)¹ | (33) | – | – | (67) 1,2 | (67) | | Amounts written off | – | – | – | – | – | – | (13) | (13) | | At 31 December | – | 18 | 1,834 | 1,852 | – | 16 | 1,484 | 1,500 | | Net book value | 72 | 1 | 2,172 | 2,245 | 72 | 1 | 1,915 | 1,988 | 1 The Group has performed its annual review of computer software intangibles to determine instances when carrying value is greater than its recoverable amount and impaired $16 million (31 December 2024: $22 million). 2 During 2024, the Group performed a review of its computer software intangibles which were capitalised as at 31 December 2023, and impaired $238 million of the 2024 net book value due to limitations in the available evidence to support the continued capitalisation of the assets. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 157 ![]() 16. Goodwill and intangible assets continued CGU structure When considering the generation of independent cash inflows and appropriate level of management, Corporate & Investment Banking and Wealth Management are managed on a global basis, while Retail Banking and others including Treasury Market activities are managed on a country basis. Outcome of impairment assessment An annual assessment is made as to whether the current carrying value of goodwill is impaired. For the purposes of impairment testing, goodwill is allocated at the date of acquisition to a CGU. Goodwill is considered to be impaired if the carrying amount of the relevant CGU exceeds its recoverable amount. Indicators of impairment include changes in the economic performance and outlook of the region including geopolitical changes, changes in market value of regional investments, large credit defaults and strategic decisions to exit 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 estimated terminal value based on a perpetuity value after year five. The cashflow projections are based on forecasts approved by management up to 2030. 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 goodwill allocated to material CGUs and key assumptions used in determining the recoverable amounts are set out below and are solely estimates for the purposes of assessing impairment of acquired goodwill. Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | | 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 | $million | per cent | per cent | $million | per cent | per cent | | Country CGUs | | | | | | | | Africa & Middle East | 64 | | | 65 | | | | Pakistan | 30 | 33.9 | 2.5 | 31 | 35.9 | 3.3 | | Bahrain | 34 | 16.1 | 1.0 | 34 | 12.4 | 0.8 | | Asia | 290 | | | 278 | | | | Singapore | 290 | 13.1 | 2.0 | 278 | 13.0 | 2.3 | | Global CGUs | 947 | | | 949 | | | | Wealth Management | 83 | 15.1 | 1.6 | 83 | 15.0 | 1.8 | | Corporate & Investment Banking | 864 | 15.5 | 2.1 | 866 | 15.5 | 2.3 | | | 1,301 | | | 1,292 | | | In the current year, there are no CGUs for which reasonably possible changes on key estimates (cashflow, discount rate and GDP growth) would cause an impairment. Company Acquired intangibles primarily comprise those recognised as part of the acquisitions of American Express Bank, Tradewinds, Australia and New Zealand Project Finance and Grindlays. Significant items of goodwill arising on acquisitions have been allocated to the following cash generating units for the purposes of impairment testing: | | | | | --- | --- | --- | | | 2025 | 2024 | | | Goodwill | Goodwill | | Cash generating unit | $million | $million | | Country CGUs | | | | Bahrain | 17 | 17 | | Global CGUs | | | | Corporate & Investment Banking | 55 | 55 | | | 72 | 72 | In the current year, there are no CGUs for which reasonably possible changes on key estimates (cashflow, discount rate and GDP growth) would cause an impairment. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 158 ![]() 17. Property, plant and equipment Accounting Policy All property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. Land and buildings comprise mainly branches and offices. Freehold land is not depreciated although it is subject to impairment testing. Depreciation 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 remaining 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 capitalised and included in Property, plant and equipment with a corresponding liability to the lessor recognised in Other liabilities. The accounting policy for lease assets is set out in Note 18. Group | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | 2024 | | | | | | | Leased | Leased | | | | Leased | Leased | | | | | | premises | equipment | | | | premises | equipment | | | | Premises | Equipment | assets | assets | Total | Premises | Equipment | assets | assets | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Cost or valuation | | | | | | | | | | | | At 1 January | 602 | 548 | 991 | 30 | 2,171 | 532 | 477 | 900 | 6 | 1,915 | | Exchange translation differences | 11 | 25 | 30 | – | 66 | 5 | (7) | (20) | (2) | (24) | | Additions | 104 1 | 121 1 | 159 | 21 | 405 | 91 | 106 | 112 | 27 | 336 | | Disposals and fully depreciated | | | | | | | | | | | | assets written off 2 | (14) | (49) | (16) | – | (79) | (17) | (28) | (1) | (1) | (47) | | Other movement | (3) | – | – | – | (3) | (9) | – | – | – | (9) | | Transfers to assets held for sale | (43) | – | – | – | (43) | – | – | – | – | – | | As at 31 December | 657 | 645 | 1,164 | 51 | 2,517 | 602 | 548 | 991 | 30 | 2,171 | | Depreciation | | | | | | | | | | | | Accumulated at 1 January | 218 | 339 | 460 | 10 | 1,027 | 198 | 305 | 378 | 4 | 885 | | Exchange translation differences | 7 | 24 | (1) | – | 30 | (2) | 4 | (20) | (2) | (20) | | Charge for the year | 43 | 74 | 110 | 16 | 243 | 29 | 59 | 101 | 9 | 198 | | Impairment (release)/charge | – | – | 1 | – | 1 | – | – | 2 | – | 2 | | Attributable to assets sold, transferred or written off 2 | (10) | (47) | (15) | – | (72) | (7) | (29) | (1) | (1) | (38) | | Transfers to assets held for sale | (15) | – | – | – | (15) | – | – | – | – | – | | Accumulated at 31 December | 243 | 390 | 555 | 26 | 1,214 | 218 | 339 | 460 | 10 | 1,027 | | Net book amount at 31 December | 414 | 255 | 609 | 25 | 1,303 | 384 | 209 | 531 | 20 | 1,144 | 1 Refer to the cash flow statement under cash flows from investing activities section for the purchase of property, plant and equipment during the year of $225 million (31 December 2024: $224 million). 2 In the cash flow statement, disposals of property, plant and equipment of $17 million (31 December 2024: $13 million) 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 Directors’ Report and Financial Statements 2025 | Standard Chartered 159 ![]() 17. Property, plant and equipment continued Company | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | 2024 | | | | | | | Leased | Leased | | | | Leased | Leased | | | | | | premises | equipment | | | | premises | equipment | | | | Premises | Equipment | assets | assets | Total | Premises | Equipment | assets | assets | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Cost or valuation | | | | | | | | | | | | At 1 January | 249 | 377 | 550 | 28 | 1,204 | 200 | 303 | 486 | 1 | 990 | | Exchange translation differences | (6) | 2 | (2) | – | (6) | 11 | (10) | (8) | – | (7) | | Additions | 67 1 | 82 1 | 33 | 21 | 203 | 58 | 91 | 72 | 27 | 248 | | Disposals and fully depreciated | | | | | | | | | | | | assets written off 2 | (1) | (8) | (1) | – | (10) | (11) | (7) | – | – | (18) | | Other movement | (3) | – | – | – | (3) | (9) | – | – | – | (9) | | Transfers to assets held for sale | (14) | (1) | (1) | – | (16) | – | – | – | – | – | | As at 31 December | 292 | 452 | 579 | 49 | 1,372 | 249 | 377 | 550 | 28 | 1,204 | | Depreciation | | | | | | | | | | | | Accumulated at 1 January | 65 | 214 | 256 | 10 | 545 | 60 | 184 | 224 | 1 | 469 | | Exchange translation differences | – | 1 | (3) | – | (2) | (1) | (5) | (11) | – | (17) | | Charge for the year | 16 | 51 | 44 | 16 | 127 | 6 | 41 | 41 | 9 | 97 | | Impairment (release)/charge | – | – | – | – | – | – | – | 2 | – | 2 | | Attributable to assets sold, transferred or written off 2 | (1) | (7) | (1) | – | (9) | – | (6) | – | – | (6) | | Transfers to assets held for sale | (1) | (1) | (1) | – | (3) | – | – | – | – | – | | Accumulated at 31 December | 79 | 258 | 295 | 26 | 658 | 65 | 214 | 256 | 10 | 545 | | Net book amount at 31 December | 213 | 194 | 284 | 23 | 714 | 184 | 163 | 294 | 18 | 659 | 1 Refer to the cash flow statement under cash flows from investing activities section for the purchase of property, plant and equipment during the year of $149 million (31 December 2024: $176 million). 2 In the cash flow statement, disposals of property, plant and equipment of $3 million (31 December 2024: $15 million) 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 Directors’ Report and Financial Statements 2025 | Standard Chartered 160 ![]() 18. Leased assets Accounting policy Where the Group is a lessee and the lease is deemed in scope of IFRS 16, it recognises a liability 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 liability is recognised in ‘Other liabilities’. A corresponding right-of-use asset equal to the liability, 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 liability using the effective interest method. Depreciation on the asset is recognised in ‘Depreciation and amortisation’, and interest on the lease liability is recognised in ‘Interest expense’. If a leased premise, or a physically distinct portion of a premise such as an individual 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 indicator of impairment. An impairment 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 ability and likelihood of obtaining a subtenant. The key judgement in determining lease balances is the determination of the lease term, in particular whether the Group is reasonably certain that it will exercise extension options present in lease contracts. On initial recognition, the Group considers a range of characteristics such as premises function, regional trends and the term remaining on the lease to determine 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 determination 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 pricing information to determine 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 primarily enters lease contracts that grant it the right to use premises such as office buildings and retail branches. Existing lease liabilities may change in future periods due to changes in assumptions or decisions to exercise lease renewal or termination options, changes in payments due to renegotiations of market rental rates as permitted by those contracts and changes to payments due to rent being contractually linked to an inflation index. In general the re-measurement of a lease liability under these circumstances leads to an equal change to the right-of-use asset balance, with no immediate effect on the income statement. The total cash outflow during the year for premises and equipment leases was $136 million for Group and $63 million for Company (31 December 2024: $133 million for Group, $62 million for Company). The total expense during the year in respect of leases with a term less than or equal to 12 months nil million for Group. The right-of-use asset balances and depreciation charges are disclosed in Note 17. The lease liability balances | | | | --- | --- | | are disclosed in Note 22 and the interest expense on lease liabilities is disclosed in Note 3. | | | Maturity analysis | | | The maturity profile for lease liabilities associated with leased premises and equipment assets is as follows: | | | Other liabilities – lease liabilities | | | 2025 | 2024 | Other liabilities – lease liabilities One year or less $million Between one year and two years $million Between two years and five years $million More than five years $million Total $million One year or less $million Between one year and two years $million Between two years and five years $million More than five years $million Total $million Group 175 161 332 234 902 135 109 215 327 786 Company 64 46 112 210 432 71 50 101 235 457 #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 161 ![]() 19. Other assets | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | Other assets include: | $million | $million | $million | $million | | Financial assets held at amortized cost (Note 12): | | | | | | Cash collateral 1 | 10,790 | 9,181 | 9,239 | 8,196 | | Acceptances and endorsements | 5,411 | 4,149 | 3,339 | 2,320 | | Unsettled trades and other financial assets | 4,234 | 8,205 | 1,999 | 7,071 | | | 20,435 | 21,535 | 14,577 | 17,587 | | Non-financial assets: | | | | | | Commodities and emissions certificate | 17,370 2 | 6,570 2 | 8,695 3 | 3,743 3 | | Other assets | 353 | 373 | 296 | 222 | | | 38,158 | 28,478 | 23,568 | 21,552 | 1 Cash collateral are margins placed to collateralize net derivative mark-to-market positions. 2 Comprises precious metals and emission certificates, being inventory that is carried at fair value less costs to sell. $11.9 billion is precious metals which are classified as Level 1, the fair value of which being derived from observable spot or short-term futures prices from relevant exchanges (31 December 2024: $3.8 billion). $5.5 billion is emissions certificates and other commodity related balances classified as Level 2 (31 December 2024: $2.7 billion). 3 Comprises precious metals and emission certificates, being inventory that is carried at fair value less costs to sell. $5.2 billion is precious metals which are classified as Level 1, the fair value of which being derived from observable spot or short-term futures prices from relevant exchanges (31 December 2024: $3 billion). $3.5 billion is emissions certificates and other commodity related balances classified as Level 2 (31 December 2024: $0.7 billion). 20. Assets held for sale and associated liabilities Accounting Policy Upon reclassification property, plant and equipment are measured at the lower of their carrying amount and fair value less costs to sell. Financial instruments continue to be measured per the accounting policies in Note 12 Financial 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 2026. Assets held for sale Group: The financial assets reported below are classified under Level 1 $74 million (31 December 2024: $58 million), Level 2 $45 million (31 December 2024: $335 million) and Level 3 $790 million (31 December 2024: $473 million). Company: The financial assets reported below are classified under Level 1 $74 million (31 December 2024: nil), Level 2 $15 million (31 December 2024: nil) and Level 3 $138 million (31 December 2024: $474 million). | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | Assets held for sale | $million | $million | $million | $million | | Financial assets held at amortised cost | 909 | 866 | 227 | 474 | | Cash and balances at central banks | – | 109 | | | | Loans and advances to banks | – | – | – | – | | Loans and advances to customers | 909 | 656 | 227 | 474 | | Debt securities held at amortised cost | – | 101 | – | – | | Property, plant and equipment 1 | 24 | 8 | 13 | – | | Others | 24 | 8 | 13 | – | | Others | 24 | 27 | – | – | | | 957 | 901 | 240 | 474 | 1 Consideration on disposal of Property, plant and equipment classified under assets held for sale was $126 million for Group (31 December 2024: nil). Liabilities held for sale Group: The financial liabilities reported below are classified under Level 1 $147 million (31 December 2024: $89 million) and Level 2 $761 million (31 December 2024: $271 million). Company: The financial liabilities reported below are classified under Level 1 $147 million (31 December 2024: nil), Level 2 nil (31 December 2024: nil), Level 3 nil (31 December 2024: nil). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 162 ![]() 20. Assets held for sale and associated liabilities continued | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Financial liabilities held at amortised cost | 908 | 360 | 147 | – | | Deposits by banks | – | – | – | – | | Customer accounts | 908 | 360 | 147 | – | | Other liabilities | 6 | 16 | 3 | – | | Provisions for liabilities and charges | – | 5 | – | – | | | 914 | 381 | 150 | – | Group: The amounts included in the tables above include $741 million of assets and $914 million of liabilities representing the Botswana, Uganda, Zambia and Sri Lanka WRB businesses transferred to held for sale during the year. Company: The amounts included in the tables above include $75 million of assets and $150 million of liabilities forming part of Sri Lanka business transferred to held for sale during the year 21. Debt securities in issue Accounting policy Refer to Note 12 Financial instruments for the relevant accounting policy. Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Certificates of | Other debt | | Certificates of | Other debt | | | | deposit of | securities | | deposit of | securities | | | | $100,000 or more | in issue | Total | $100,000 or more | in issue | Total | | | $million | $million | $million | $million | $million | $million | | Debt securities in issue | 21,277 | 22,300 | 43,577 | 17,606 | 22,258 | 39,864 | | Debt securities in issue included within: | | | | | | | | Financial liabilities held at fair value through profit or loss (Note 12) | – | 14,787 | 14,787 | – | 12,176 | 12,176 | | Total debt securities in issue | 21,277 | 37,087 | 58,364 | 17,606 | 34,434 | 52,040 | Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Certificates of | Other debt | | Certificates of | Other debt | | | | deposit of | securities | | deposit of | securities | | | | $100,000 or more | in issue | Total | $100,000 or more | in issue | Total | | | $million | $million | $million | $million | $million | $million | | Debt securities in issue | 21,277 | 16,572 | 37,849 | 17,457 | 18,624 | 36,081 | | Debt securities in issue included within: | | | | | | | | Financial liabilities held at fair value through profit or loss (Note 12) | – | 16,561 | 16,561 | – | 12,062 | 12,062 | | Total debt securities in issue | 21,277 | 33,133 | 54,410 | 17,457 | 30,686 | 48,143 | In 2025, the Company issued a total of $176 million senior notes for general business purposes of the Group as shown below: | | | | --- | --- | | Securities | $million | | CNY 500 million callable fixed rate senior notes due 2030 (callable 2028 and 2029) | 70 | | CNY 400 million callable fixed rate senior notes due 2030 (callable 2028 and 2029) | 56 | | USD 50 million callable fixed rate senior notes due 2030 (callable 2027, 2028 and 2029) | 50 | | Total Senior Notes issued | 176 | In 2024, the Company issued a total of $2.5 billion senior notes for general business purposes of the Group as shown below: | | | | --- | --- | | Securities | $million | | USD 1,000 million callable fixed rate senior notes due 2028 (callable 2027) | 1,000 | | USD 1,500 million callable fixed rate senior notes due 2035 (callable 2034) | 1,500 | | Total Senior Notes issued | 2,500 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 163 ![]() 22. Other liabilities Accounting policy Refer to Note 12 Financial instruments for the relevant accounting policy for financial liabilities, Note 18 Leased assets for the accounting policy for leases. | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Financial liabilities held at amortized cost (Note 12) | | | | | | Acceptances and endorsements | 5,417 | 4,149 | 3,339 | 2,321 | | Cash collateral¹ | 12,912 | 12,984 | 12,063 | 11,788 | | Property leases | 696 | 603 | 320 | 327 | | Equipment leases | 13 | 14 | 12 | 13 | | Unsettled trades and other financial liabilities | 7,268 | 9,600 | 3,236 | 6,675 | | | 26,306 | 27,350 | 18,970 | 21,124 | | Non-financial liabilities | | | | | | Other liabilities | 507 | 417 | 451 | 362 | | | 26,813 | 27,767 | 19,421 | 21,486 | 1 Cash collateral are margins received against collateralize net derivative mark-to-market positions. 23. Provisions for liabilities and charges Accounting policy The recognition and measurement of provisions for liabilities and charges requires significant judgement and the use of estimates about uncertain future conditions or events. Estimates include the best estimate of the probability of outflow of economic resources, cost of settling a provision and timing of settlement. Judgement is required to assess inherently uncertain areas such as the anticipated outcome and financial impact of legal claims and regulatory and enforcement investigations and proceedings. Group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Provision for credit | | | Provision for credit | | | | | commitments 1 | Other provisions 2 | Total | commitments 1 | Other provisions 2 | Total | | | $million | $million | $million | $million | $million | $million | | At 1 January | 208 | 53 | 261 | 180 | 55 | 235 | | Exchange translation differences | (4) | – | (4) | 10 | (3) | 7 | | Charge/(release) against profit | (14) | 24 | 10 | 18 | 14 | 32 | | Provisions utilised | – | (19) | (19) | – | (25) | (25) | | Transfer 3 | – | – | – | – | 12 | 12 | | Other movements | (1) | – | (1) | – | – | – | | At 31 December | 189 | 58 | 247 | 208 | 53 | 261 | Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Provision for credit | | | Provision for credit | | | | | commitments 1 | Other provisions 2 | Total | commitments 1 | Other provisions 2 | Total | | | $million | $million | $million | $million | $million | $million | | At 1 January | 148 | 38 | 186 | 132 | 39 | 171 | | Exchange translation differences | (2) | (1) | (3) | (2) | (1) | (3) | | Charge/(release) against profit | 7 | 9 | 16 | 18 | (5) | 13 | | Provisions utilised | – | (8) | (8) | – | (2) | (2) | | Transfer 3 | – | – | – | – | 7 | 7 | | At 31 December | 153 | 38 | 191 | 148 | 38 | 186 | 1 Expected credit loss for credit commitment comprises those undrawn contractually committed facilities where there is doubt as to the borrowers’ ability to meet their repayment obligations. 2 Other provisions consist mainly of provisions for legal claims and regulatory and enforcement investigations and proceedings. 3 Includes the provisions transferred to held for sale. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 164 ![]() 24. Contingent liabilities and commitments Accounting policy Financial guarantee contracts and loan commitments Financial guarantee contracts and any loan commitments issued at below-market interest rates are initially recognised at their fair value as a financial liability, and subsequently measured at the higher of the initial value less the cumulative amount of income recognised and their expected credit loss provision. Loan commitments 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 financial guarantee contracts and loan commitments are disclosed in the table below. Financial guarantees, trade credits and irrevocable letters of credit are the notional values of contracts issued by the Group’s Transaction Banking business for which an obligation to make a payment has not arisen 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 financial loss suffered. These contracts have various legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facilitate trade through export and import business, provide guarantees to financial institutions where the Group has a local presence, as well as guaranteeing project financing involving large construction projects undertaken by sovereigns and corporates. The contracts may contain performance clauses which require the counterparty performing services or providing goods to meet certain conditions before a right 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 intention to provide funds to a customer or on behalf of a customer under prespecified terms and conditions 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 financial statements as commitments. Some of these commitments are generally considered 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-financial assets. The table below shows the contract or underlying principal amounts of unmatured off-balance sheet transactions at the balance sheet date. The contract or underlying principal amounts indicate the volume of business outstanding and do not represent amounts at risk. | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Financial guarantees and trade credits | | | | | | Financial guarantees, trade and irrevocable letters of credit | 104,930 | 81,343 | 91,342 | 69,038 | | | 104,930 | 81,343 | 91,342 | 69,038 | | Commitments | | | | | | Undrawn formal standby facilities, credit lines and other commitments to lend | | | | | | One year and over | 72,212 | 60,968 | 52,248 | 45,406 | | Less than one year | 24,047 | 20,396 | 19,917 | 17,079 | | Unconditionally cancellable | 47,664 | 42,567 | 7,841 | 6,808 | | | 143,923 | 123,931 | 80,006 | 69,293 | | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | Capital commitments | $million | $million | $million | $million | | Contracted capital expenditure approved by the directors | | | | | | but not provided for in these accounts | 46 | 121 | 13 | – | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 165 ![]() 24. Contingent liabilities and commitments continued The table below shows the contract or underlying principal amounts and risk-weighted amounts of unmatured Group off-balance sheet transactions at the balance sheet date. The contract or underlying principal amounts indicate the volume of business outstanding and do not represent amounts at risk. | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Financial guarantees and other contingent liabilities (Group) | | | | | | Financial guarantees, trade and irrevocable letters of credit | 5,009 | 3,771 | 11,188 | 11,790 | | Other contingent liabilities | – | – | – | – | | | 5,009 | 3,771 | 11,188 | 11,790 | | Commitments (Group) | | | | | | Undrawn commitments | 85 | 1,243 | 189 | 1,613 | | | 85 | 1,243 | 189 | 1,613 | As set out in Note 25, the Group has contingent liabilities in respect of certain legal and regulatory matters. 25. Legal and regulatory matters Accounting policy Where appropriate, the Group recognises a provision for liabilities 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 obligation. The uncertainties inherent in legal and regulatory matters affect the amount and timing of any potential outflows with respect to which provisions have been established. These uncertainties also mean that it is not possible to give an aggregate estimate of contingent liabilities arising from such legal and regulatory matters. The Group receives legal claims against it in a number of jurisdictions and is subject to regulatory and enforcement investigations and proceedings from time to time. Apart from the matters described below, the Group currently considers none of the ongoing claims, investigations or proceedings to be individually material. However, in light of the uncertainties involved in such matters there can be no assurance that the outcome of a particular matter or matters currently not considered to be material may not ultimately be material to the Group’s results in a particular reporting period depending on, among other things, the amount of the loss resulting from the matter(s) and the results otherwise reported for such period. Since 2014, the PLC Group has been named as a defendant in a series of lawsuits filed in the United States District Courts for the Southern and Eastern Districts of New York against a number of banks on behalf of plaintiffs who are, or are relatives of, victims of attacks in Iraq, Afghanistan and Israel. The plaintiffs in each of these lawsuits allege that the defendant banks aided and abetted the unlawful conduct of parties with connections to terrorist organisations in breach of the United States Anti- Terrorism Act. None of the lawsuits specify the amount of damages claimed. The PLC Group continues to defend these lawsuits. In January 2020, a shareholder derivative complaint was filed by the City of Philadelphia in New York State Court against 45 current and former directors and senior officers of the PLC Group. It is alleged that the individuals breached their duties to the PLC Group and caused a waste of corporate assets by permitting the conduct that gave rise 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 dismiss the complaint. The plaintiffs are pursuing an appeal against the February 2022 ruling. A ruling on the plaintiffs’ appeal is awaited. Bernard Madoff’s 2008 confession to running a Ponzi scheme through Bernard L. Madoff Investment Securities LLC (BMIS) gave rise to a number of lawsuits against the PLC Group. BMIS and the Fairfield funds (which invested in BMIS) are in bankruptcy and liquidation, respectively. Between 2010 and 2012, five lawsuits were brought against the PLC Group by the BMIS bankruptcy trustee and the Fairfield funds’ liquidators, in each case seeking to recover funds paid to the PLC Group’s clients pursuant to redemption requests made prior to BMIS’ bankruptcy filing. The total amount sought in these cases exceeds U.S.$300 million, excluding any pre-judgment interest that may be awarded. Three of the four lawsuits commenced by the Fairfield funds’ liquidators have been dismissed and those dismissals were upheld by the appeal court. The fourth lawsuit has been dismissed and is not the subject of any further appeal. The PLC Group continues to defend the lawsuit brought by the BMIS bankruptcy trustee. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 166 ![]() 25. Legal and regulatory matters continued In June 2025, a lawsuit was filed in the Singapore High Court against Standard Chartered Bank (Singapore) Limited (“Standard Chartered Singapore”), by three companies now in liquidation that had misappropriated funds from 1Malaysia Development Berhad (1MDB), seeking U.S.$2.7billion. The companies allege, among other things, that Standard Chartered Singapore knew or ought to have known that these companies were engaged in the fraud on 1MDB at the time that Standard Chartered Singapore effected transfers instructed by these companies. The companies allege that in doing so, Standard Chartered Singapore breached its mandate and applicable duties. Standard Chartered Singapore had reported the transaction activities of these companies before it closed their accounts in early 2013. Standard Chartered Singapore denies any and all liability and will defend this lawsuit. The Group is defending a lawsuit filed in the courts of Victoria, Australia, against a number of financial institutions by two companies in liquidation, Jabiru Satellite Limited and NewSat Limited. The claimants allege that the defendants breached implied obligations under 2013 loan agreements and acted unconscionably by declining to waive breaches and events of default and by refusing to continue funding their satellite project, ultimately resulting in the claimants entering receivership. The claimants have asserted loss and damage of up to U.S.$4.81 billion from the defendants. In addition to having denied any and all liability, the defendants will contest the claimants’ alleged losses, which the Group considers to be baseless. The trial of this claim is due to start in Q2 2026. The Group has concluded that the threshold for recording provisions pursuant to IAS 37 Provisions, Contingent Liabilities and Contingent Assets is not met with respect to the above matters; however, the outcomes of these matters are inherently uncertain and difficult to predict. 26. Subordinated liabilities and other borrowed funds Accounting policy Refer to Note 12 Financial instruments for the relevant accounting policy. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Subordinated loan capital – issued by subsidiary undertakings | | | | NPR2.4 billion 10.3 per cent fixed rate subordinated notes due 2028 2 | 17 | 18 | | $540 million floating rate subordinated notes due 2030 (callable 2025) 1 | – | 540 | | | 17 | 558 | | Subordinated loan capital – issued by the Company | | | | $700 million 8.0 per cent subordinated notes due 2031 | 330 | 326 | | $500 million 4.96 per cent fixed rate subordinated notes due 2043 | 500 | 410 | | $2 billion 4.57 per cent fixed rate subordinated notes due 2044 (callable 2039) | 1,903 | 1,849 | | $250 million 4.82 per cent fixed rate subordinated notes due 2048 (callable 2043) | 186 | 250 | | $1.25 billion floating rate subordinated notes due 2032 (callable 2027) | 1,250 | 1,250 | | $1 billion 3.516 per cent fixed rate reset subordinated debt due 2030 (callable 2025) | – | 996 | | £504 million 6.1368 per cent fixed rate subordinated notes due 2043 (callable 2038) | 673 | 624 | | $2 billion 5.3 per cent fixed rate reset subordinated notes due 2035 (callable 2030) | 1,857 | 1,782 | | £527 million floating rate subordinated notes due 2039 (callable 2034) | 709 | 660 | | €1 billion 2.5 per cent fixed rate reset subordinated notes due 2030 (callable 2025) | – | 1,020 | | $750 million 3.603 per cent fixed rate reset subordinated notes due 2033 (callable 2032) | 750 | 634 | | | 8,158 | 9,801 | | Total for Group | 8,175 | 10,359 | 1 Issued by Standard Chartered Bank Singapore Limited. 2 Issued by Standard Chartered Bank Nepal Limited. NPR refers to Nepalese Rupee. | | | | | | | | --- | --- | --- | --- | --- | --- | | | USD | GBP | EUR | NPR | Total | | 2025 | 6,776 | 1,382 | – | 17 | 8,175 | | 2024 | 8,037 | 1,284 | 1,020 | 18 | 10,359 | Redemptions and repurchases during the year Standard Chartered Bank exercised its right to redeem $1 billion 3.516 per cent subordinated notes 2025, $540 million floating rate subordinated notes 2025 and €1 billion 2.5 per cent subordinated notes 2025. Issuances during the year There were no issuances during the year. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 167 ![]() 27. Share capital, other equity instruments and reserves Accounting policy Securities which carry a discretionary coupon and have no fixed maturity or redemption date are classified as other equity instruments. Interest payments on these securities are recognised, net of tax, as distributions 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 consideration paid 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 consideration received is included in shareholders’ equity of the Group and/or the Company. Group and Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | Preference share | Total share capital | | | | Number of | Ordinary | Ordinary share | capital and share | and share | Other equity | | | ordinary shares | share capital 1 | premium | premium 2 | premium | instruments | | | millions | $million | $million | $million | $million | $million | | At 1 January 2024 | 20,597 | 20,597 | 296 | 750 | 21,643 | 4,742 | | Additional Tier 1 equity issuance | – | – | – | – | – | 980 | | At 31 December 2024 | 20,597 | 20,597 | 296 | 750 | 21,643 | 5,722 | | Additional Tier 1 equity issuance | – | – | – | – | – | – | | At 31 December 2025 | 20,597 | 20,597 | 296 | 750 | 21,643 | 5,722 | 1 Issued and fully paid ordinary shares of $1 each. 2 Includes preference share capital of $61,500. Ordinary share capital The authorised share capital of the Company at 31 December 2025 was $26,789 million and TWD 1,225 million (31 December 2024: $26,789 million and TWD 1,225 million) made up of 26,782 million ordinary shares of $1 each, 2.4 million non-cumulative irredeemable preference shares of $0.01 each, 1 million non-cumulative 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 million non-cumulative redeemable preference shares of TWD24.50 each. The issued share capital of the Company at 31 December 2025 was $20,597 million (31 December 2024: $20,597 million) made up of: 20,597 million ordinary 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 restrictions as to voting 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 $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: | | | | --- | --- | | Nominal amount of Shares or Stock held | Nominal amount of Shares or Stock held | | $25 or more but less than $50 | 1 vote | | $50 or more but less than $100 | 2 votes | | $100 or more but less than $250 | 3 votes | | $250 or more but less than $375 | 4 votes | | $375 or more but less than $500 | 5 votes | | $500 or more but less than $750 | 6 votes | | $750 or more but less than $1,000 | 7 votes | | $1,000 or more but less than $1,250 | 8 votes | | $1,250 or more but less than $1,500 | 9 votes | | $1,500 or more | 10 votes | 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 dividend payment date falling 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 dividend thereon up to but excluding the redemption date. 2.4 million non-cumulative irredeemable preference shares of $0.01 each. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 168 ![]() 27. Share capital, other equity instruments and reserves continued Other equity instruments The table provides details of outstanding Fixed Rate Resetting Perpetual Subordinated Contingent Convertible AT1 securities issued by Standard Chartered Bank. All issuances are made for general business purposes and to increase the regulatory capital base of the Group. | | | | | | | | --- | --- | --- | --- | --- | --- | | | Nominal value | Proceeds net of issue costs | Interest rate 1 | | | | Issuance date | million | $million | % | Coupon payment dates 2 | First reset dates 3 | | 02 June 2021 | USD 1,250 | 1,250 | 4.75 | 14 January, 14 July each year | 14 July 2031 | | 23 August 2021 | USD 1,500 | 1,500 | 4.30 | 19 February, 19 August each year | 19 February 2029 | | 15 August 2022 | USD 1,000 | 1,000 | 7.75 | 15 February, 15 August each year | 15 February 2028 | | 31 March 2023 | USD 750 | 750 | 7.75 | 30 January, 30 July each year | 30 July 2037 | | 31 March 2023 | GBP 96 | 120 | 7.90 | 4 April, 4 October each year | 4 April 2028 | | 31 March 2023 | GBP 99 | 122 | 7.90 | 4 April, 4 October each year | 4 April 2028 | | 27 March 2024 | USD 400 | 400 | 7.875 | 8 March, 8 September each year | 8 September 2030 | | 19 September 2024 | SGD 750 | 580 | 5.30 | 19 March, 19 September each year | 19 March 2030 | | | Total | 5,722 | | | | 1 Interest rates for the period from (and including) the issue date to (but excluding) the first reset date. 2 Interest payable semi-annually in arrears. 3 Securities are resettable each date falling five years, or an integral multiple of five years, after the first reset date. The principal terms of the AT1 securities are described below: • The securities are perpetual and redeemable, at the option 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 securities are also redeemable for certain regulatory or tax reasons on any date at 100 per cent of their principal amount together with any accrued but unpaid interest up to (but excluding) the date fixed for redemption. Any redemption is subject to the Company giving notice to the relevant regulator and the regulator granting permission to redeem • Interest payments on these securities will be accounted for as a dividend • Interest on the securities is due and payable only at the sole and absolute discretion of the Company, subject to certain additional restrictions set out in the terms and conditions. Accordingly, 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 securities will 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 securities rank behind 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 claims of other creditors of the Company, whether subordinated or unsubordinated, other than claims which rank, or are expressed to rank, pari passu with, or junior to, the claims of holders of the AT1 securities in a winding-up occurring prior to the Loss Absorption Event. Reserves The constituents of the reserves are summarised as follows: The capital reserve represents the exchange difference on redenomination of share capital and share premium from sterling to US dollars in 2001. The capital redemption reserve represents the nominal value of preference shares redeemed. • Own credit adjustment reserve represents the cumulative gains and losses on financial liabilities designated at fair value through profit or loss relating to own credit. Gains and losses on financial liabilities designated at fair value through profit or loss relating to own credit in the year have been taken through other comprehensive income into this reserve. On derecognition of applicable instruments, the balance of any OCA will not be recycled to the income statement, but will be transferred within equity to retained earnings • Fair value through other comprehensive income (FVOCI) debt reserve represents the unrealised fair value gains and losses in respect of financial assets classified as FVOCI, net of expected credit losses. Gains and losses are deferred in this reserve and are reclassified to the income statement when the underlying asset is sold, matures or becomes impaired • FVOCI equity reserve represents unrealised fair value gains and losses in respect of financial assets classified as FVOCI. Gains and losses are recorded in this reserve and never recycled to the income statement • Cash flow hedge reserve represents the effective portion of the gains and losses on derivatives that meet the criteria for these types of hedges. Gains and losses are deferred in this reserve and are reclassified to the income statement when the underlying hedged item affects profit and loss or when a forecast transaction is no longer expected to occur • Translation reserve represents the cumulative foreign exchange gains and losses on translation of the net investment of the Group in foreign operations. Since 1 January 2004, gains and losses are deferred to this reserve and are reclassified to the income statement when the underlying foreign operation is disposed. Gains and losses arising from derivatives used as hedges of net investments are netted against the foreign exchange gains and losses on translation of the net investment of the foreign operations #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 169 ![]() 27. Share capital, other equity instruments and reserves continued • Retained earnings represents profits and other comprehensive income earned by the Group and Company in the current and prior periods, together with the after tax increase relating to equity-settled share options, less dividend distributions and own shares held (treasury shares) A substantial part of the Group’s reserves is held in overseas subsidiary undertakings and branches, principally to support local operations or to comply with local regulations. The maintenance of local regulatory capital ratios could potentially restrict the amount of reserves which can be remitted. In addition, if these overseas reserves were to be remitted, further unprovided taxation liabilities might arise. As at 31 December 2025, the distributable reserves of Standard Chartered Bank (the Company) were $2.6 billion (31 December 2024: $2.2 billion). Distributable reserves of the Company were $2.6 billion, which include the distributable portions of retained earnings. Distributable reserves are calculated from Retained earnings, reduced by ordinary dividend payments, distributions on additional tier 1 instruments, impairments in investments in subsidiaries, restricted items in line with section 830 and 831 of the Companies Act 2006, and the local statutory restrictions of foreign branches which are reasonably expected to be enforced. They are increased by profits and the realisation of retained earnings. 28. Non-controlling interests Accounting policy Non-controlling interests are measured at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | At 1 January | 464 | 1,080 | | Comprehensive income for the year | 66 | 22 | | Profit/(loss) in equity attributable to non-controlling interests | 32 | (17) | | Other profits attributable to non-controlling interests | 34 | 39 | | Distributions | (98) | (125) | | Others 1 | 162 | (513) | | At 31 December | 594 | 464 | 1 Movements in 2025 are primarily from non-controlling interest pertaining to Standard Chartered Bank Singapore Limited $154 million and Trust Bank Singapore Limited $8 million. Net cash flow from non-controlling interest is $8 million (2024: $506 million). Movements in 2024 are primarily from non-controlling interest pertaining to Standard Chartered Bank Singapore Limited $562 million pertaining to redemption of preference shares and Standard Chartered Bank Angola S.A. $6 million offset by Trust Bank Singapore Limited ($55 million). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 170 ![]() 29. Retirement benefit obligations Accounting policy The Group operates pension and other post-retirement benefit plans around the world, which can be categorised into defined contribution plans and defined benefit plans. • For defined contribution plans, the Group pays contributions to publicly or privately administered pension plans on a statutory or contractual basis, and such amounts are charged to operating expenses. The Group has no further payment obligations once the contributions have been paid. • For defined benefit plans, which promise levels of payments where the future cost is not known with certainty: – The accounting obligation 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 liability for the year by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability, taking into account any changes in the net defined benefit liability during the year as a result of contributions and benefit payments. Net interest expense, the cost of the accrual of new benefits, benefit enhancements (or reductions) and administration 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 obligations. This measurement requires the use of estimates, such as discount rates, inflation, pension 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 obligations. This is the approach | | | adopted across all our geographies. | | Inflation | Where there are inflation-linked bonds available (e.g. United Kingdom and the eurozone), the Group | | | derives inflation based on the market on those bonds, with the market yield adjusted in respect of the United | | | Kingdom to take account of the fact that liabilities are linked to Consumer Price Index inflation, whereas the | | | reference bonds are linked to Retail Price Index inflation. Where no inflation-linked bonds exist, we determine | | | inflation assumptions based on a combination of long-term forecasts and short-term inflation data. | | Salary growth | Salary growth assumptions reflect the Group’s long-term expectations, taking into account future business | | | plans and macroeconomic data (primarily expected future long-term inflation). | | Demographic | Demographic assumptions, including mortality 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 historic experience and/or future expectations . | The sensitivity of the liabilities to changes in these assumptions is shown in the Note below. Group Retirement benefit obligations comprise: | | | | | | | --- | --- | --- | --- | --- | | | Obligation | | Charge¹ | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Defined benefit plans obligation | 186 | 118 | 102 | 37 | | Defined contribution plans obligation | 22 | 13 | 290 | 295 | | Total | 208 | 131 | 392¹ | 332¹ | 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 contribution arrangements. The aim of all these plans is, as part of the Group’s commitment to financial 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 conditions. The defined benefit plans expose the Group to currency risk, interest rate risk, investment risk and actuarial risks such as longevity risk. The disclosures required under IAS 19 have been calculated by independent qualified actuaries based on the most recent full actuarial valuations updated, where necessary, to 31 December 2025. Financial and demographic assumptions have remained largely consistent with those used in the prior year. And the impact on the liabilities of any movements in interest and inflation rates has been partially hedged by the government and corporate bonds held. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 171 ![]() 29. Retirement benefit obligations continued The increase in the pension deficit during the year was primarily driven by regulatory and legal developments in India (causing a past service cost of $48 million) and Kenya ($19 million). In India, a past service cost has been recognised in relation to statutory lump sum plans, based on the current interpretation of new regulations that expand the definition of pay on which they are calculated. The new regulations were substantively enacted on 21 November and applied both immediately and retrospectively; further clarification from the local authorities is expected in 2026. In Kenya, the Retirement Benefits Appeals Tribunal (RBAT) ruled broadly in favour of a longstanding legal case brought by 629 former employees. A past service cost reflects the financial impact of this judgment, which included a mandate to fund the plan. Where legacy colleagues have yet to be traced, the temporary surplus arising from the mandated funding has been disregarded under IFRIC14. UK Fund The Standard Chartered Pension Fund (the ‘UK Fund’) is the Bank Group’s largest pension plan, representing 55 per cent (31 December 2024: 56 per cent) of total pension liabilities. The UK Fund is set up under a trust that is legally separate from the Bank (its formal sponsor) and, as required by UK legislation, at least one-third of the trustee directors are nominated by members; the remainder are appointed by the Bank. The trustee directors have a fiduciary 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 UK employees are now offered membership of a defined contribution plan. The financial position of the UK Fund is regularly assessed by an independent qualified actuary. The funding valuation as at 31 December 2023 was completed in December 2024 by the Scheme Actuary, T Kripps of Willis Towers Watson, using assumptions different from those used for IAS19, and agreed with the UK Fund trustee. It showed that the UK Fund was 96% funded at that date, revealing a past service deficit of $48 million (£38 million). To repair the deficit, three annual cash payments each of $13 million (£10 million) were agreed, with the first of these paid in December 2024, and two further instalments to be paid in December 2025 and December 2026. However, the agreement allowed that the payments due in 2025 and 2026 may be varied depending on the funding position at the preceding 30 June provided that total payments over the three year recovery plan period do not exceed $38 million (£30 million). Based on financial conditions at 30 June 2025, the Scheme Actuary determined that the 2025 payment should be $7 million (£5 million), and this was remitted to the Fund in December. As part of the 2023 valuation agreement, it was agreed that gilts with a nominal value of $200 million (£160 million) would remain in escrow to provide additional security the Trustee. The Group has not recognised any additional liability under IFRIC 14, as the Bank has control of any pension surplus under the Trust Deed and Rules. Overseas plans The principal 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, Thailand and UAE remain open for accrual of future benefits. Key assumptions The principal financial assumptions used at 31 December 2025 were: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | UK Fund | Overseas Plans 1 | Unfunded Plans 2 | UK Funded | Overseas Plans 1 | Unfunded Plans 2 | | | % | % | % | % | % | % | | Discount rate | 5.5 | 5.5 – 6.7 | 1.4 – 6.7 | 5.5 | 3.4 – 6.9 | 2.5 – 6.9 | | Price inflation | 2.4 | 2.0 – 5.0 | 2.0 – 5.0 | 2.5 | 2.0 – 5.0 | 2.0 – 5.0 | | Salary increases | n/a | 3.5 – 7.5 | 2.4 – 7.5 | n/a | 3.5 – 8.5 | 4.0 – 8.5 | | Pension increases | 2.4 | 0.0 – 2.8 | 0.0 – 2.4 | 2.3 | 0.0 – 2.9 | 0.0 – 2.3 | | Post-retirement medical rate | n/a | n/a | 8% in 2025 | n/a | n/a | 8% in 2024 | | | | | reducing by | | | reducing by | | | | | 0.5% per | | | 0.5% per | | | | | annum to 5% | | | annum to 5% | | | | | in 2031 | | | in 2030 | 1 The range of assumptions shown is for the main funded defined benefit overseas plans in India, Jersey, and the US. These comprise around 75 per cent of the total liabilities 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 80 per cent of the total liabilities of unfunded plans. The principal non-financial assumptions 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 2024 improvement model with a 1.25 per cent annual trend and initial addition parameter of 0.25 per cent. Scaling factors of 81 per cent for male pensioners, 93 per cent for female pensioners, 81 per cent for male dependants and 81 per cent for female dependants have been applied. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 172 ![]() 29. Retirement benefit obligations continued The resulting assumptions for life expectancy for the UK Fund are that a male member currently aged 60 will live for 28 years (2024: 28 years) and a female member for 29 years (2024: 29 years) and a male member currently aged 40 will live for 29 years (2024: 29 years) and a female member for 31 years (2024: 31 years) after their 60 th birthdays. Both financial and non-financial assumptions can be expected to change in the future, which would affect the value placed on the liabilities. For example, changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below: • If the discount rate increased by 25 basis points, the liability would reduce by approximately $25 million for the UK Fund (31 December 2024: $25 million) and $15 million for the other plans (31 December 2024: $15 million) • If the rate of inflation increased by 25 basis points, the liability allowing for the consequent impact on pension and salary increases, would increase by approximately $15 million for the UK Fund (31 December 2024: $15 million) and $5 million for the other plans (31 December 2024: $10 million) • If the rate of salary growth relative to inflation increased by 25 basis points, the liability would increase by nil for the UK Fund (31 December 2024: nil) and approximately $5 million for the other plans (31 December 2024: $5 million) • If longevity expectations increased by one year, the liability would increase by approximately $40 million for the UK Fund (31 December 2024: $35 million) and $10 million for the other plans (31 December 2024: $10 million) Although this analysis does not take account of the full distribution of cash flows expected under the UK Fund, it does provide an approximation of the sensitivity to the main assumptions. While changes in other assumptions would also have an impact, the effect would not be as significant. Profile of plan obligations | | | | | | --- | --- | --- | --- | | | Funded plans | | Unfunded | | | UK Fund | Overseas | plans | | Duration of the defined benefit obligation (in years) | 10 | 8 | 8 | | Duration of the defined benefit obligation – 2024 | 10 | 8 | 8 | | Benefits expected to be paid from plans | | | | | Benefits expected to be paid during 2026 | 89 | 73 | 20 | | Benefits expected to be paid during 2027 | 92 | 61 | 18 | | Benefits expected to be paid during 2028 | 94 | 63 | 17 | | Benefits expected to be paid during 2029 | 96 | 68 | 16 | | Benefits expected to be paid during 2030 | 99 | 71 | 18 | | Benefits expected to be paid during 2031 to 2035 | 529 | 402 | 87 | Fund values: The fair value of assets and present value of liabilities of the defined benefit plans were: | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | | 2024 | | | | | | | 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 | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | At 31 December | | | | | | | | | | | | | | Equities | 2 | – | 2 | 50 | – | 50 | 2 | – | 2 | 43 | – | 43 | | Government bonds | 332 | – | 332 | 243 | – | 243 | 342 | – | 342 | 204 | – | 204 | | Corporate bonds | 411 | 134 | 545 | 225 | – | 225 | 357 | 126 | 483 | 253 | – | 253 | | Hedge funds | – | 4 | 4 | 2 | – | 2 | – | 5 | 5 | – | – | – | | Infrastructure | – | 191 | 191 | – | – | – | – | 170 | 170 | – | – | – | | Property | – | 80 | 80 | – | 18 | 18 | – | 81 | 81 | – | 16 | 16 | | Derivatives | 2 | (2) | – | – | – | – | 22 | (1) | 21 | – | – | – | | Cash and equivalents | 38 | – | 38 | 132 | – | 132 | 35 | – | 35 | 29 | – | 29 | | Others | 9 | – | 9 | 6 | – | 6 | 7 | 2 | 9 | – | 88 | 88 | | Total fair value | | | | | | | | | | | | | | of assets 1 | 794 | 407 | 1,201 | 658 | 18 | 676 | 765 | 383 | 1,148 | 529 | 104 | 633 | 1 Self-investment is monitored closely and is less than $1 million of Standard Chartered equities and bonds for 2025 (2024: <$1 million). 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. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 173 ![]() 29. Retirement benefit obligations continued | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | Funded plans | | | Funded plans | | | | | Overseas | Unfunded | | Overseas | Unfunded | | | UK Fund | Plans | Plans | UK Fund | Plans | Plans | | | $million | $million | $million | $million | $million | $million | | Total fair value of assets | 1,201 | 672 1 | n/a | 1,148 | 633 | n/a | | Present value of liabilities | (1,133) | (749) | (177) | (1,070) | (655) | (174) | | Net pension plan asset/(obligation) | 68 | (77) | (177) | 78 | (22) | (174) | | Of which: Total pension assets in respect of plans in surplus | 68 | 36 | – | 78 | 41 | – | | Of which: Total pension obligations in respect of plans in deficit | – | (113) | (177) | – | (63) | (174) | 1 Overseas plan assets include an asset ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus. The pension cost for defined benefit plans was: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | | Funded plans | | | | Funded plans | | | | | | Overseas | | | | Overseas | | | | | UK Fund | plans | Other | Total | UK Fund | plans | Other | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | | Current service cost 1 | – | 26 | 5 | 31 | – | 19 | 7 | 26 | | Past service cost and curtailments 2 | – | 67 | – | 67 | – | 2 | (1) | 1 | | Settlement cost 3 | – | 1 | – | 1 | – | 3 | – | 3 | | Interest income on pension plan assets | (65) | (47) | – | (112) | (56) | (26) | – | (82) | | Interest on pension plan liabilities | 60 | 46 | 9 | 115 | 54 | 27 | 8 | 89 | | Total charge to profit before deduction | | | | | | | | | | of tax | (5) | 93 | 14 | 102 | (2) | 25 | 14 | 37 | | Net (gain)/losses on plan assets 4 | 18 | (3) | – | 15 | 78 | (3) | – | 75 | | (Gains)/losses on liabilities | 10 | 17 | (1) | 26 | (103) | 3 | (1) | (101) | | Total (gains)/losses recognised directly | | | | | | | | | | in statement of comprehensive income | | | | | | | | | | before tax | 28 | 14 | (1) | 41 | (25) | – | (1) | (26) | | Deferred taxation | (2) | (8) | – | (10) | 5 | 3 | – | 8 | | Total (gains)/losses after tax | 26 | 6 | (1) | 31 | (20) | 3 | (1) | (18) | 1 Includes administrative expenses paid out of plan assets of $1 million (2024: $1 million) and actuarial losses of $1 million (31 December 2024: $1 million) that are immediately recognised through P&L in line with the requirements of IAS 19. 2 Relates to provisional impact of regulatory change in India and RBAT court ruling in Kenya. 3 Impact of settlements relates termination benefits paid out in Indonesia. 4 The actual return on the UK Fund assets was a gain of $47 million (31 December 2024: $22 million loss) and on overseas plan assets was a gain of $50 million (31 December 2024: $29 million gain). Movement in the defined benefit pension deficit during the year comprise: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | | Funded plans | | | | Funded plans | | | | | | Overseas | | | | Overseas | | | | | UK Fund | plans | Other | Total | UK Fund | plans | Other | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | | Surplus/(deficit) at 1 January 2025 | 78 | (22) | (174) | (118) | 40 | (20) | (181) | (161) | | Contributions | 7 | 55 | 15 | 77 | 13 | 18 | 17 | 48 | | Current service cost 1 | – | (26) | (5) | (31) | – | (19) | (7) | (26) | | Past service cost and curtailments 2 | – | (67) | – | (67) | – | (2) | 1 | (1) | | Settlement costs and transfers impact 3 | – | (1) | – | (1) | – | (3) | – | (3) | | Net interest on the net defined benefit | | | | | | | | | | asset/liability | 5 | 1 | (9) | (3) | 2 | (1) | (8) | (7) | | Actuarial gains/(losses) | (28) | (14) | 1 | (41) | 25 | – | 1 | 26 | | Other Movement | – | – | – | – | – | (1) | – | (1) | | Asset Ceiling 4 | – | (4) | – | (4) | – | – | – | – | | Exchange rate adjustment | 6 | 1 | (5) | 2 | (2) | 6 | 3 | 7 | | Surplus/(deficit) at 31 December 2025 | 68 | (77) | (177) | (186) | 78 | (22) | (174) | (118) | 1 Includes administrative expenses paid out of plan assets of $1 million (31 December 2024: $1 million). 2 Relates to provisional impact of plan amendments in India and RBAT court ruling in Kenya. 3 Impact of settlements relates to termination benefits in Indonesia. 4 Overseas plans include an asset ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 174 ![]() 29. Retirement benefit obligations continued The Bank Group’s expected contribution to its defined benefit pension plans in 2026 is $65 million. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Assets | Obligations | Total | Assets | Obligations | Total | | | $million | $million | $million | $million | $million | $million | | At 1 January | 1,781 | (1,899) | (118) | 1,668 | (1,829) | (161) | | Contributions 1 | 88 | (11) | 77 | 49 | (1) | 48 | | Current service cost 2 | – | (31) | (31) | – | (26) | (26) | | Past service cost and curtailments | – | (67) | (67) | – | (1) | (1) | | Settlement costs 3 | – | (1) | (1) | – | (3) | (3) | | Interest cost on pension plan liabilities | – | (115) | (115) | – | (89) | (89) | | Interest income on pension plan assets | 112 | – | 112 | 82 | – | 82 | | Benefits paid out | (167) | 167 | – | (131) | 131 | – | | Actuarial gains/(losses) 4 | (15) | (26) | (41) | (75) | 101 | 26 | | Effect of Asset Ceiling 5 | (4) | – | (4) | – | – | – | | Other Movement | – | – | – | 212 | (213) | (1) | | Exchange rate adjustment | 78 | (76) | 2 | (24) | 31 | 7 | | At 31 December | 1,873 | (2,059) | (186) | 1,781 | (1,899) | (118) | 1 Includes employee contributions of $11 million (31 December 2024: $1 million). 2 Includes administrative expenses paid out of plan assets of $1 million (31 December 2024: $1 million). 3 Impact of settlements relates to termination benefits paid out in Indonesia. 4 Actuarial loss on obligation comprises of $8 million loss (31 December 2024: $133 million gain) from financial assumption changes, $1 million gain (31 December 2024: $11 million gain) from demographic assumption changes and $19 million loss (31 December 2024: $33 million loss) from experience. 5 Assets reflect a ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus. Company Retirement benefit obligations comprise: | | | | | | | --- | --- | --- | --- | --- | | | Obligation | | Charge (Note 7) | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Defined benefit plans obligation | 111 | 81 | 32 | 22 | | Defined contribution plans obligation | 1 | 1 | 131 | 147 | | Net obligation | 112 | 82 | 163 | 169 | Retirement benefit charge comprises: UK Fund See the Bank Group section on the UK Fund in this note (page 172). There are no differences between Bank Group and Company in respect of the Fund Overseas Plans The principal overseas defined benefit arrangements operated by the Company are in Germany, Jersey, India, United Arab Emirates (UAE) and the United States of America (US). All Plans The disclosures required under IAS 19 have been calculated by qualified independent actuaries based on the most recent full actuarial valuations updated, where necessary, to 31 December 2025. The financial assumptions used at 31 December 2025 as shown below. Sensitivities are recorded on page 172 of the Bank Group accounts and those for non-UK Fund plans are applicable in proportion to the lower liabilities of the Company. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | UK Fund | Overseas Plans 1 | Unfunded Plans 2 | UK Funded | Overseas Plans 1 | Unfunded Plans 2 | | | % | % | % | % | % | % | | Discount rate | 5.5 | 3.4 – 9.9 | 5.5 – 6.7 | 5.5 | 3.4 – 12.5 | 4.5 – 6.9 | | Price inflation | 2.4 | 2.8 – 6.0 | 2.4 – 5.0 | 2.5 | 2.0 – 6.0 | 2.5 – 6.9 | | Salary increases | n/a | 3.5 – 8.0 | 2.4 – 4.0 | n/a | 3.5 – 8.5 | 4.5 – 8.5 | | Pension increases | 2.4 | 0.0 – 2.9 | 0.0 – 2.4 | 2.3 | 0.0 – 2.9 | 0.0 – 2.3 | | Post-retirement | n/a | n/a | 8% in 2025 reducing | n/a | n/a | 8% in 2024 reducing | | medical rate | | | by 0.5% per annum | | | by 0.5% per annum | | | | | to 5% in 2031 | | | to 5% in 2030 | 1 The range of assumptions shown is for the main funded defined benefit overseas plans in Bangladesh, Germany, India, Jersey and the US. These comprise around 90 per cent of the total liabilities 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 liabilities of unfunded plans. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 175 ![]() 29. Retirement benefit obligations continued Fund values: The fair value of assets and present value of liabilities of the defined benefit plans were: | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | | 2024 | | | | | | | 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 | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | At 31 December | | | | | | | | | | | | | | Equities | 2 | – | 2 | 36 | – | 36 | 2 | – | 2 | 35 | – | 35 | | Government bonds | 332 | – | 332 | 231 | – | 231 | 342 | – | 342 | 195 | – | 195 | | Corporate bonds | 411 | 134 | 545 | 221 | – | 221 | 357 | 126 | 483 | 250 | – | 250 | | Hedge funds | – | 4 | 4 | – | – | – | – | 5 | 5 | – | – | – | | Infrastructure | – | 191 | 191 | – | – | – | – | 170 | 170 | – | – | – | | Property | – | 80 | 80 | – | 18 | 18 | – | 81 | 81 | – | 15 | 15 | | Derivatives | 2 | (2) | – | – | – | – | 22 | (1) | 21 | – | – | – | | Cash and equivalents | 38 | – | 38 | 58 | – | 58 | 35 | – | 35 | 22 | – | 22 | | Others | 9 | – | 9 | 6 | – | 6 | 7 | 2 | 9 | – | 37 | 37 | | Total fair value | | | | | | | | | | | | | | of assets 1 | 794 | 407 | 1,201 | 552 | 18 | 570 | 765 | 383 | 1,148 | 502 | 52 | 554 | 1 Self investment is monitored closely and is less than $1 million of Standard Chartered equities and bonds for 2025 (2024: <$1 million). 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. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | Funded plans | | | Funded plans | | | | | Overseas | Unfunded | | Overseas | Unfunded | | | UK Fund | Plans | Plans | UK Fund | Plans | Plans | | | $million | $million | $million | $million | $million | $million | | Total fair value of assets | 1,201 | 567 1 | n/a | 1,148 | 554 | n/a | | Present value of liabilities | (1,133) | (585) | (161) | (1,070) | (553) | (160) | | Net pension plan asset/(obligation) | 68 | (18) | (161) | 78 | 1 | (160) | | Of which: Total pension assets in respect of plans in surplus | 68 | 36 | – | 78 | 40 | – | | Of which: Total pension obligations in respect of plans in deficit | – | (54) | (161) | – | (39) | (160) | 1 Overseas plan assets include an asset ceiling in a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus. The pension cost for defined benefit plans was: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | | Funded plans | | | | Funded plans | | | | | | Overseas | | | | Overseas | | | | | UK Fund | plans | Other | Total | UK Fund | plans | Other | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | | Current service cost 1 | – | 15 | 4 | 19 | – | 9 | 4 | 13 | | Past service cost and curtailments 2 | – | 9 | 1 | 10 | – | 2 | (1) | 1 | | Settlement cost 3 | – | 1 | – | 1 | – | 3 | – | 3 | | Interest income on pension plan assets | (65) | (38) | – | (103) | (56) | (19) | – | (75) | | Interest on pension plan liabilities | 60 | 36 | 9 | 105 | 54 | 18 | 8 | 80 | | Total charge to profit before deduction | | | | | | | | | | of tax | (5) | 23 | 14 | 32 | (2) | 13 | 11 | 22 | | Net (gain)/losses on plan assets 4 | 18 | (2) | – | 16 | 78 | (2) | – | 76 | | (Gains)/losses on liabilities | 10 | 17 | – | 27 | (103) | (1) | (1) | (105) | | Total (gains)/losses recognised directly in statement of comprehensive income | | | | | | | | | | before tax | 28 | 15 | – | 43 | (25) | (3) | (1) | (29) | | Deferred taxation | (2) | (7) | – | (9) | 5 | 1 | – | 6 | | Total (gains)/losses after tax | 26 | 8 | – | 34 | (20) | (2) | (1) | (23) | 1 Includes administrative expenses paid out of plan assets of $1 million (2024: $1 million). 2 Relates to provisional impact of regulatory change in India. 3 Impact of settlements relates to termination benefits in Indonesia. 4 The actual return on the UK Fund assets was a loss of $47 million (2024: $22 million gain) and on overseas plan assets was a gain of $40 million (2024: $21 million gain) . #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 176 ![]() 29. Retirement benefit obligations continued Movement in the defined benefit pension plans and post-retirement medical deficit during the year comprise: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | 2024 | | | | | | Funded plans | | | | Funded plans | | | | | | Overseas | | | | Overseas | | | | | UK Fund | plans | Other | Total | UK Fund | plans | Other | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | | Deficit at 1 January | 78 | 1 | (160) | (81) | 40 | 2 | (170) | (128) | | Contributions | 7 | 23 | 16 | 46 | 13 | 10 | 16 | 39 | | Current service cost | – | (15) | (4) | (19) | – | (9) | (4) | (13) | | Past service cost and curtailments | – | (9) | (1) | (10) | – | (2) | 1 | (1) | | Settlement costs and transfers impact | – | (1) | – | (1) | – | (3) | – | (3) | | Net interest on the net defined benefit | | | | | | | | | | asset/liability | 5 | 2 | (9) | (2) | 2 | 1 | (8) | (5) | | Actuarial (losses)/gains | (28) | (15) | – | (43) | 25 | 3 | 1 | 29 | | Other Movement | – | – | – | – | – | (1) | – | (1) | | Effect of asset ceiling 1 | – | (3) | – | (3) | – | – | – | – | | Exchange rate adjustment | 6 | (1) | (3) | 2 | (2) | – | 4 | 2 | | Deficit at 31 December | 68 | (18) | (161) | (111) | 78 | 1 | (160) | (81) | 1 Assets reflect a ceiling in a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus. The Company’s expected contribution to its defined benefit pension plans in 2026 is $39million | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | Assets | Obligations | Total | Assets | Obligations | Total | | | $million | $million | $million | $million | $million | $million | | At 1 January | 1,702 | (1,783) | (81) | 1,599 | (1,727) | (128) | | Contributions 1 | 54 | (8) | 46 | 39 | – | 39 | | Current service cost 2 | – | (19) | (19) | – | (13) | (13) | | Past service cost and curtailments 3 | – | (10) | (10) | – | (1) | (1) | | Settlement costs 4 | – | (1) | (1) | – | (3) | (3) | | Interest cost on pension plan liabilities | – | (105) | (105) | – | (80) | (80) | | Interest income on pension plan assets | 103 | – | 103 | 75 | – | 75 | | Benefits paid out | (148) | 148 | – | (123) | 123 | – | | Actuarial (losses)/gains 5 | (16) | (27) | (43) | (76) | 105 | 29 | | Other Movement | – | – | – | 212 | (213) | (1) | | Effect of asset ceiling 6 | (3) | – | (3) | – | – | – | | Exchange rate adjustment | 76 | (74) | 2 | (24) | 26 | 2 | | At 31 December | 1,768 | (1,879) | (111) | 1,702 | (1,783) | (81) | 1 Includes employee contributions of $10 million (31 December 2024: nil). 2 Includes administrative expenses paid out of plan assets of $1 million (31 December 2024: $1 million). 3 Relates to provisional impact of regulatory change in India. 4 Impact of settlements relates to termination benefits in Indonesia. 5 Actuarial loss on obligation comprises of $9 million loss (31 December 2024: $135 million gain) from financial assumption changes, $1 million gain (31 December 2024: $1 million gain) from demographic assumption changes and $19 million loss (31 December 2024: $31 million loss) from experience. 6 Assets include a ceiling in a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 177 ![]() 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 conditions (for example, profitability 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 binomial option pricing model. Non-market vesting conditions 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 revision of original estimates, if any, in the income statement and a corresponding adjustment to equity over the remaining vesting period. Forfeitures prior to vesting attributable to factors other than the failure to satisfy service conditions and non-market vesting conditions are treated as a cancellation and the remaining unamortised 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 liability 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 conditions or market-based performance conditions, the cumulative charge incurred up to the date of forfeiture is credited to the income statement. Other accounting estimates and judgements Share-based payments involve judgement and estimation uncertainty exists when determining the expenses and carrying values of share awards at the balance sheet date. • LTIP awards are determined using an estimation of the probability of meeting certain metrics over a three-year performance period using the Monte Carlo simulation model. • Deferred shares are determined using an estimation of expected dividends. • Sharesave Plan valuations are determined using a binomial option-pricing 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. | | | | | --- | --- | --- | | | 2025 1 | 2024 1 | | | Total | Total | | | $million | $million | | Deferred share awards | 168 | 125 | | Other share awards | 41 | 96 | | Total share-based payments 1 | 209 | 221 | 1 No forfeiture assumed. The Group determines both the grant and settlement date for all schemes, and no option to determine grant or settlement date is available to employees. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 178 ![]() 30. Share-based payments continued Discretionary share plans The 2021 Standard Chartered Share Plan (the ‘2021 Plan’) was approved by shareholders in May 2021 and is the Group’s main share plan, replacing the 2011 Standard Chartered Share Plan (the ‘2011 Plan’) for new awards from June 2021. It is used to deliver various types of share awards to employees and former employees of the Group, including directors and former executive directors: | | | | | | | --- | --- | --- | --- | --- | | Award type | Description and performance measures | | Valuation | | | Long Term | The vesting of awards granted in 2025, 2024 | | The fair value of the relative TSR component is | | | Incentive Plan | and 2023 are subject to the following | | calculated using the probability of meeting the | | | (LTIP) awards | performance measures: | | measures over a three-year performance period, | | | | • | relative Total Shareholder Return (TSR) 1 ; | using a Monte Carlo simulation model. | | | | • | Return on Tangible Equity (RoTE 2 ) (with a | The value of the remaining components is based | | | | Common Equity Tier 1 (CET1) underpin); and | | on the expected performance against the RoTE | | | | • | strategic measures (including targets set for | and strategic measures in the scorecard and | | | | sustainability linked to business strategy) | | the resulting estimated number of shares | | | | Each measure is assessed independently over | | expected to vest at each reporting date. | | | | a three-year period. LTIP awards have an individual | | These combined values are used to determine | | | | conduct gateway requirement that results in the | | the accounting charge. | | | | award lapsing if not met. | | No dividend equivalents accrue for the LTIP awards | | | | | | made in 2025, 2024 | | or 2023 and the fair value takes | | | Vested awards are delivered in ordinary Standard | | this into account, calculated by reference to market | | | | Chartered PLC shares. | | consensus dividend yield. | | | Deferred | Used to deliver: | | The fair value for deferred shares, which are | | | shares | • | the deferred portion of year-end variable | granted to employees who are not categorised | | | | remuneration, in line with both market practice | | as material risk takers, is based on 100 per cent | of the face value of the shares at the date of grant | | | and regulatory requirements. These awards vest | | | | | | in instalments on anniversaries of the award date | | as the share price will reflect expectations of all | | | | specified at the time of grant. This enables the | | future dividends. | | | | Group to meet regulatory requirements relating to | | For awards granted to material risk takers in 2025, | | | | deferral levels, and is in line with market practice. | | the fair value of awards takes into account the lack | | | | • | replacement buy-out awards to new joiners who | of dividend equivalents, calculated by reference to | | | | forfeit awards on leaving their previous employers. | | market consensus dividend yield. | | | | 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. | | | | | | Vested awards are delivered in ordinary Standard | | | | | | Chartered PLC shares. | | | | 1 TSR or Total Shareholder Return is the total return of the PLC Group’s equity (share price growth and dividends) to investors. 2 2 ROTE is the ratio of the current year’s profit available for distribution to ordinary share-holders to the average tangible equity, being ordinary shareholders’ equity less the average intangible assets for the reporting period. The remaining life of the 2021 Standard Chartered Share Plan during which new awards can be made is six years. LTIP awards | | | | | --- | --- | --- | | | 2025 | 2024 | | Grant date | 12-May | 12-March | | Share price at grant date (£) | 11.70 | 6.60 | | Vesting period (years) | 3-7 | 3-7 | | Expected divided yield (%) | 3.5 | 4.2 | | Fair value (RoTE) (£) | 2.86,2.96,3.06 | 1.55,1.61,1.68 | | Fair value (TSR) (£) | 1.97,2.04,2.10 | 0.95,1.01,1.06 | | Fair value (Strategic) (£) | 3.81,3.94,4.08 | 2.06,2.15,2.24 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 179 ![]() 30. Share-based payments continued Deferred shares – year-end | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | 2025 | | | | | Grant date | 17-Nov | | 24-Sep | | 12-May | | 14-Mar | | | Share price at grant date (£) | 16.13 | | 14.55 | | 11.7 | | 11.77 | | | | Expected | | Expected | | Expected | | Expected | | | | dividend yield | Fair value | dividend yield | Fair value | dividend yield | Fair value | dividend yield | Fair value | | Vesting period (years) | (%) | (£) | (%) | (£) | (%) | (£) | (%) | (£) | | 1-3 years | NA | 20.49 | NA | 18.48 | NA | 14.86 | NA | 14.95 | | | | | | 16.95, | 13.18, | 13.41, | | 13.34, | | 1-5 years | – | – | 2.5, 2.5, 2.5 | 17.16, 17.37 | 3.5, 3.5, 3.5 | 13.64 | 3.3, 3.3, 3.3 | 13.56, 13.78 | | 3-7 years | – | – | – | – | – | – | 3.3, 3.3 | 12.30, 12.71 | | | | | | | | --- | --- | --- | --- | --- | | | | | 2024 | | | Grant date | 17 June | | 11 March | | | Share price at grant date (£) | 7.24 | | 6.56 | | | | Expected | | Expected | | | | dividend yield | Fair value | dividend yield | Fair value | | Vesting period (years) | (%) | (£) | (%) | (£) | | 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 | Deferred shares – buy-outs | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | 2025 | | | | | | Grant date | 17-Nov | | 24-Sep | | 12-May | | 14-Mar | | | Share price at grant date (£) | 16.13 | | 14.55 | | 11.7 | | 11.77 | | | | Expected | | Expected | | Expected | | Expected | | | | dividend yield | Fair value | dividend yield | Fair value | dividend yield | Fair value | dividend yield | Fair value | | Vesting period (years) | (%) | (£) | (%) | (£) | (%) | (£) | (%) | (£) | | 3 months | | | 2.5 | 19.44 | | | 3.3 | 15.07 | | 4 months | 3.3 | 21.14 | | | 3.5 | 15.87 | | | | | | | | 18.85, | | | | | | 6 months | | | 2.5 | 19.09, 19.32 | | | | | | 7 months | 3.3 | 20.97 | | | | | | | | 9 months | | | 2.5 | 19.2 | | | | | | 10 months | | | | | 3.5 | 15.58 | | | | | | | 18.39, | 18.62, | | | | | | | | 20.30, | | 18.74, | | 15.06, | | | | | | 20.46, | 18.85, | 18.97, | | 15.33, | | | | 1 year | 3.3 | 20.63 | 2.5 | 19.09 | 3.5 | 15.44 | 3.3 | 14.59, 14.71 | | | | | 17.94, | 18.17, | | | | | | | 19.65, | 19.81, | 18.28, | 18.39, | | | | | | 2 years | 3.3 | 19.97 | 2.5 | 18.51, 18.62 | 3.5 | 14.92 | 3.3 | 14.12, 14.24 | | | | | 17.72, | 17.94, | | | | | | 3 years | 3.3 | 19.18, 19.33 | 2.5 | 18.17 | 3.5 | 14.41 | 3.3 | 13.78 | | 4 years | | | 2.5 | 17.51 | | | | | | 5 years      | | | | | | | | | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 180 ![]() 30. Share-based payments continued | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | 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 | | | | dividend yield | Fair value | dividend yield | Fair value | dividend yield | Fair value | dividend yield | Fair value | | Vesting period (years) | (%) | (£) | (%) | (£) | (%) | (£) | (%) | (£) | | 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 | | | 9.02, | 9.11, | 8.58, | 8.66, | 7.73, | 7.81, | | 1 year | 4.2 | 11.22, 11.36 | 4.2 | 9.21, 9.30 | 3.8 | 8.74 | 4.2 | 7.89, 7.97 | | 1.4 years | | | 8.65, | 8.74, | | | 7.42, | 7.50, | | 2 years | 4.2 | 10.77, 10.90 | 4.2 | 8.83, 8.93 | 3.8 | 8.26, 8.34 | 4.2 | 7.57, 7.65 | | 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 | 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 Standard Chartered PLC shares 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 invitation or the closing share price on the last trading day prior to the invitation. 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 securities law and regulatory restrictions. In these countries, where possible, the Group offers an equivalent cash-based alternative to its employees. The remaining life of the 2023 Sharesave Plan during which new awards can be made is eight years. Valuation – Sharesave: Options under the Sharesave plans are valued using a binomial option-pricing model. The same fair value is applied to all employees including executive directors. The fair value per option granted and the assumptions used in the calculation are as follows: All Employee Sharesave Plan (Sharesave) | | | | | --- | --- | --- | | | 2025 | 2024 | | Grant date | 24 September | 23 September | | Share price at grant date (£) | 14.55 | 7.59 | | Exercise price (£) | 11.10 | 6.10 | | Vesting period (years) | 3 | 3 | | Expected volatility (%) | 31.2 | 32.9 | | Expected option life (years) | 3.5 | 3.5 | | Risk-free rate (%) | 3.98 | 3.88 | | Expected dividend yield (%) | 2.5 | 4.2 | | Fair value (£) | 6.49 | 2.73 | The expected volatility is based on historical volatility over the last three years, or the three years prior 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 dividend yield is calculated by reference to market consensus dividend yield. Limits 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 discretionary 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. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 181 ![]() 30. Share-based payments continued 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 individual under the 2021 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. There are no participants with options and awards granted and to be granted in excess of the 1% individual limit, and there are no related entity participants or service providers with options and awards granted and to be granted in any 12-month period exceeding 0.1% of the relevant class of shares in issue (excluding treasury shares). Reconciliation of share award movements for the year to 31 December 2025 | | | | | | | --- | --- | --- | --- | --- | | | Discretionary 1,2 | | | Weighted | | | | | | average | | | | | | Sharesave | | | | Deferred | | exercise price | | | LTIP | shares | Sharesave 2.6,7 | (£) | | Outstanding at 1 January 2025 2 | 8,924,192 | 43,009,271 | 13,752,137 | 5.49 | | Granted 3,4,5 | 1,825,362 | 13,385,159 | 3,427,900 | – | | Lapsed 8 | (304,929) | (527,940) | (921,597) | 6.25 | | Exercised | (1,192,019) | (17,174,553) | (814,557) | 3.90 | | Outstanding at 31 December 2025 | 9,252,606 | 38,691,937 | 15,443,883 | 6.78 | | Total number of securities available for issue under the plan | 9,252,606 | 38,691,937 | 15,443,883 | | | Percentage of the issued shares this represents as at 31 December 2024 | 0.41 | 1.71 | 0.68 | 6.78 | | Exercisable as at 31 December 2025 | – | 58,438 | 68,827 | 5.49 | | Range of exercise prices (£) | – | – | 4.23 – 11.10 | | | Intrinsic value of vested but not exercised options ($ million) | 0.00 | 1.43 | 1.18 | | | Weighted average contractual remaining life (years) | 7.07 | 7.99 | 2.08 | | | Weighted average share price for awards exercised during the period (£) | 11.78 | 11.75 | 11.60 | | 1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards. 2 The opening balances were adjusted during the year due to a change in approach to determining which historical grants to include under the SC Bank consolidation. 3 1,825,362 (LTIP) granted on 12 May 2025. The closing price of the shares immediately before the date on which the options or awards were granted was £10.675. 4 11,905,575 (Deferred shares) granted on 14 March 2025. The closing price of the shares immediately before the date on which the options or awards were granted was £11.58. 114,069 (Deferred shares) granted as a notional dividend on 27 March 2025; 333,619 (Deferred shares) granted on 12 May 2025; The closing price of the shares immediately before the date on which the options or awards were granted was £10.675. 39,009 (Deferred shares) granted as a notional dividend on 28 August 2025. 837,836 (Deferred shares) granted on 24 September 2025. The closing price of the shares immediately before the date on which the options or awards were granted was £14.545. 155,051 (Deferred shares) granted on 17 November 2025. The closing price of the shares immediately before the date on which the options or awards were granted was £16.130. 5 No discretionary awards (LTIP or deferred/buy-out awards) have been granted in the form of options since June 2015. For historic awards granted as options and exercised in the period to 31 December 2025, the exercise price of deferred/Buy-out shares options was nil. 6 The exercise price of Sharesave grants are determined with a 20% discount on the higher of the average closing price of the five days prior to invitation date or the closing share price of the last day prior to invitation date. For Sharesave options granted in 2025, the exercise price is £11.10 per share calculated based on a 20% discount on £13.88 which was the average closing price of the five days prior to invitation date of 18 August 2025. 7 All Sharesave awards are in the form of options. The exercise price of Sharesave options exercised was £11.10 for options granted in 2025, £6.10 for options granted in 2024, £5.88 for options granted in 2023, £4.23 for options granted in 2022. 8 No options or share awards were cancelled in the period. See pages 189 and 192-193 for information specific to Directors #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 182 ![]() 30. Share-based payments continued Reconciliation of share award movements for the year to 31 December 2024 | | | | | | | --- | --- | --- | --- | --- | | | Discretionary 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 securities available 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 (£) | – | – | 3.67 – 6.10 | | | Intrinsic value of vested but not exercised options ($ million) | 0.00 | 3.03 | 5.60 | | | Weighted average contractual remaining life (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 dividend on 1 March 2024; 214 (LTIP) granted as a notional dividend on 8 August 2024. 20,352,568 (Deferred shares) granted on 11 March 2024; 181,907 (Deferred shares) granted as a notional dividend on 1 March 2024; 452,138 (Deferred shares) granted on 17 June 2024; 69,815 (Deferred shares) granted as a notional dividend 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 discretionary awards (LTIP or deferred/buy-out awards) have been granted in the form of options since June 2015. For historic awards granted as options and exercised in the period to 31 December 2024, the exercise price of deferred/buy-out shares options was nil. 4 The exercise price of Sharesave grants are determined with a 20% discount on the higher of the average closing price of the five days prior to invitation date or the closing share price of the last day prior to invitation date. For Sharesave options granted in 2024, the exercise price is £6.10 per share calculated based on a 20% discount on £7.62 which was the closing price on the day prior to invitation date of 19 August 2024. 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 189 and pages 192- 193 for information specific to Directors. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 183 ![]() 31. Investments in subsidiary undertakings, joint ventures and associates Accounting policy Associates and joint arrangements The Group did not have any contractual interest in joint operations. Investments in associates and joint ventures are accounted for by the equity method of accounting and are initially recognised at cost. The Group’s investment in associates and joint ventures includes goodwill identified on acquisition (net of any accumulated impairment loss). The Group’s share of its associates’ and joint ventures’ post-acquisition profits or losses is recognised in the income statement, and its share of post-acquisition movements in other comprehensive income is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate or a joint venture equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture. Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in the associates and joint ventures. At each balance sheet date, the Group assesses whether there is any objective evidence of impairment in the investment in associates and joint ventures. Such evidence includes a significant or prolonged decline in the fair value of the Group’s investment in an associate or joint venture below its cost, among other factors. Business combinations The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. In the Company’s financial statements, investment in subsidiaries, associates and joint ventures are held at cost less impairment and dividends from pre-acquisition profits received prior to 1 January 2009, if any. Inter-company transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated in the Group accounts. Other areas of accounting estimates and judgement The Group applies judgement in determining if it has control, joint control or significant influence over subsidiaries, joint ventures and associates respectively. These judgements are based upon identifying the relevant activities of counterparties, being those activities that significantly affect the entities returns, and further making a decision of if the Group has control over those entities, joint control, or has significant influence (being the power to participate in the financial and operating policy decisions but not control them). These judgements are at times determined by equity holdings, and the voting rights associated with those holdings. However, further considerations including but not limited to board seats, advisory committee members and specialist knowledge of some decision-makers are also taken into account. Further judgement is required when determining 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 dispersion of other shareholders. Impairment testing of investments in associates and joint ventures, and on a Company level investments in subsidiaries is performed if there is a possible indicator of impairment. Judgement is used to determine if there is objective evidence of impairment. Objective evidence may be observable data such as losses incurred on the investment when applying the equity method, the granting of concessions as a result of financial difficulty, or breaches of contracts/regulatory fines of the associate or joint venture. Further judgement is required when considering broader indicators of impairment such as losses of active markets or ratings downgrades across key markets in which the associate or joint venture operate in. Impairment testing is based on estimates including forecasting 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 estimation of future cash flows and the level to which they are discounted is inherently uncertain and requires significant judgement. | | | | | --- | --- | --- | | | 2025 | 2024 | | Investments in subsidiary undertakings | $million | $million | | As at 1 January | 10,671 | 10,066 | | Additions 1 | 169 | 601 | | Disposal | – | (7) | | Impairment (charge)/release 2 | (40) | 11 | | As at 31 December | 10,800 | 10,671 | 1 2025 movement primarily includes Standard chartered AG limited $167 million. 2024 movement includes issuances of $580 million to Standard Chartered Bank (Singapore) Limited. 2 2025 movement primarily relates to the net of impairment charge of Standard Chartered Holdings Inc. A complete list of subsidiary undertakings is included in Note 39. During 2025 the Group disposed of some of its indirectly held investments in subsidiaries and the losses on disposal were Standard Chartered Bank Gambia Limited (loss: $5.4 million including translation adjustment loss: $8 million) and Standard Chartered Bank Cameroon S.A. (loss: $5.3 million including translation adjustment loss: $9 million). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 184 ![]() 31. Investments in subsidiary undertakings, joint ventures and associates continued While the Group’s subsidiaries are subject to local statutory capital and liquidity requirements in relation to foreign exchange remittance, these restrictions arise in the normal course of business and do not significantly restrict the Group’s ability to access or use assets and settle liabilities of the Group. The Group does not have significant restrictions on its ability to access or use its assets and settle its liabilities other than those resulting from the regulatory framework within which the banking subsidiaries operate. These frameworks require banking operations to keep certain levels of regulatory capital, liquid assets, exposure limits and comply with other required ratios. These restrictions are summarised below: Regulatory and liquidity requirements The Group’s subsidiaries are required to maintain minimum capital, leverage ratios, liquidity and exposure ratios which therefore restrict the ability of these subsidiaries to distribute cash or other assets to the parent company. The subsidiaries are also required to maintain balances with central banks and other regulatory authorities in the countries in which they operate. At 31 December 2025, the total cash and balances with central banks was $64.9 billion (31 December 2024: $56.7 billion) of which $2.9 billion (31 December 2024: $2.9 billion) is restricted. Statutory requirements The Group’s subsidiaries are subject to statutory requirements not to make distributions of capital and unrealised profits to the parent company, generally to maintain solvency. These requirements restrict the ability of subsidiaries to remit dividends to the Group. Certain subsidiaries are also subject to local exchange control regulations which provide for restrictions on exporting capital from the country other than through normal dividends . 32. Structured entities Accounting policy Structured entities are consolidated when the substance of the relationship between the Group and the structured entity indicates the Group has power over the contractual relevant activities of the structured entity, is exposed to variable returns, and can use that power to affect the variable return exposure. In determining whether to consolidate a structured entity to which assets have been transferred, the Group takes into account its ability to direct the relevant activities of the structured entity. These relevant activities are generally evidenced through a unilateral right to liquidate the structured entity, investment in a substantial proportion of the securities issued by the structured entity or where the Group holds specific subordinate securities that embody certain controlling rights. The Group may further consider relevant activities embedded within contractual arrangements such as call options which give the practical ability to direct the entity, special relationships between the structured entity and investors, and if a single investor has a large exposure to variable returns of the structured entity. Judgement is required in determining control over structured entities. The purpose and design of the entity is considered, along with a determination of what the relevant activities 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 principal in its own right or as an agent on behalf of others. Judgement is further required in the ongoing assessment of control over structured entities, specifically if market conditions have an effect on the variable return exposure of different investors. Interests in consolidated structured entities: A structured entity is consolidated into the Group’s financial statements where the Group controls the structured entity, as per the determination in the accounting policy above. The following table presents the Group’s interests in consolidated structured entities. The following table presents the Group’s interests in consolidated structured entities. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Principal and other structured finance | 436 | 239 | | Total | 436 | 239 | Interests in unconsolidated structured entities: Unconsolidated structured entities are all structured entities that are not controlled by the Group. The Group enters into transactions with unconsolidated structured entities in the normal course of business to facilitate customer transactions and for specific investment opportunities. An interest in a structured entity is contractual or non-contractual involvement which creates variability of the returns of the Group arising from the performance of the structured entity. The table below presents the carrying amount of the assets recognised in the financial statements relating to variable interests held in unconsolidated structured entities, the maximum exposure to loss relating to those interests and the total assets of the structured entities. Maximum exposure to loss is primarily limited to the carrying amount of the Group’s on-balance sheet exposure to the structured entity. For derivatives, the maximum 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. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 185 ![]() 32. Structured entities continued | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | 2025 | | | | | 2024 | | | | | | | | Corporate | | | | | | Corporate | | | | | | Asset | | Lending & | Principal | | | Asset | | Lending & | Principal | | | | | -backed | | Structured | Finance | Other | | -backed | | Structured | Finance | Other | | | | securities | Lending | Finance | funds | activities | Total | securities | Lending | Finance | funds | activities | Total | | | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | | Group’s interest – assets | | | | | | | | | | | | | | Financial assets held at fair value through profit | | | | | | | | | | | | | | or loss | 590 | 458 | 197 | 78 | – | 1,323 | 358 | 71 | 178 | 86 | – | 693 | | Loans and advances/ | | | | | | | | | | | | | | Investment securities at amortised cost | 8,316 | 12,988 | 10,759 | – | 107 | 32,170 | 11,372 | 9,105 | 8,648 | – | 97 | 29,222 | | Investment securities | | | | | | | | | | | | | | (fair value through other comprehensive income) | 1,227 | – | – | – | – | 1,227 | 1,421 | – | – | – | – | 1,421 | | Other assets | – | 8 | 12 | – | – | 20 | – | – | – | – | – | – | | Total assets | 10,133 | 13,454 | 10,968 | 78 | 107 | 34,740 | 13,151 | 9,176 | 8,826 | 86 | 97 | 31,336 | | Off-balance sheet | 151 | 9,552 | 6,817 | 23 | 32 | 16,575 | – | 6,369 | 5,554 | 61 | 73 | 12,057 | | Group’s maximum | | | | | | | | | | | | | | exposure to loss | 10,284 | 23,006 | 17,785 | 101 | 139 | 51,315 | 13,151 | 15,545 | 14,380 | 147 | 170 | 43,393 | | Total assets of structured entities | 114,415 | 14,209 | 14,357 | 99 | – | 143,080 | 86,906 | 9,492 | 10,748 | 115 | – | 107,261 | The main types of activities for which the Group utilises unconsolidated structured entities cover synthetic credit default swaps for managed investment funds (including specialised Principal Finance funds), portfolio management purposes, structured finance and asset-backed securities. These are detailed as follows: • Asset-backed securities (ABS): The Group also has investments in asset-backed securities issued by third-party sponsored and managed structured entities. For the purpose of market making and at the discretion of ABS trading desk, the Group may hold an immaterial amount of debt securities from structured entities originated by credit portfolio management. This is disclosed in the ABS column above. • Portfolio management (Group sponsored entities): For the purposes of portfolio management, the Group purchased credit protection via synthetic credit default swaps from note-issuing structured entities. This 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 entities. The Group continues to own or hold all of the risks and returns relating to these assets. The credit protection obtained from the regulatory-compliant securitisation only serves to protect the Group against losses upon the occurrence of eligible credit 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 entities but may hold an insignificant 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 securities to collateralise the structured entities swap obligations to the Group, and to repay the principal to investors at maturity. The structured entities reimburse the Group on actual losses incurred, through the use of the cash collateral or realisation of the collateral security. Correspondingly, the structured entities write down the notes issued by an equal amount of the losses incurred, in reverse order of seniority. All funding is committed for the life of these vehicles and the Group has no indirect exposure in respect of the vehicles’ liquidity position. 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 entities have Standard Chartered branding. • Lending: Lending comprises secured lending in the normal course of business to third parties through structured entities. • Structured Finance: Structured finance comprises interests in transaction that the Group or, more usually, a customer has structured, using one or more structured entities, which provide beneficial arrangements for customers. The Group’s exposure primarily represents the provision of funding to these structures as a financial intermediary, for which it receives a lender’s return. The transactions largely relate to real estate financing and the provision of aircraft leasing and ship finance. • Principal Finance Fund: The Group’s exposure to Principal Finance Funds represents committed or invested capital in unleveraged investment funds, primarily investing in pan-Asian infrastructure, real estate and private equity. • Other activities: Other activities include structured entities created to support margin financing transactions, the refinancing of existing credit and debt facilities, as well as setting up of bankruptcy remote structured entities. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 186 ![]() 32. Structured entities continued In the above table, the Group determined the total assets of the structured entities using following bases: • Asset Backed Securities, Principal Finance, and Other activities are based on the published total assets of the structured entities • Lending and Structured Finance are estimated based on the Group’s loan values to the structured entities. 33. Cash flow statement Adjustment for non-cash items and other adjustments included within income statement | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Amortisation of discounts and premiums of investment securities | (428) | (420) | (351) | (259) | | Interest expense on subordinated liabilities | 485 | 597 | 527 | 682 | | Interest expense on senior debt securities in issue | 542 | 651 | 819 | 1,077 | | Other non-cash items | (118) | (87) | (92) | (29) | | Net (gain)/loss on sale of business | (4) | 214 | – | (26) | | Pension costs for defined benefit schemes | 102 | 37 | 32 | 22 | | Share-based payment costs | 209 | 219 | 153 | 136 | | Impairment losses on loans and advances and other credit risk provisions | 248 | 15 | 88 | (114) | | Dividend income from subsidiaries | – | – | (1,260) | (1,052) | | Other impairment | 29 | 410 | 57 | 273 | | Gain on disposal of property, plant and equipment | (125) | (3) | (2) | (3) | | Loss on disposal of FVOCI & AMCST financial assets | 53 | 190 | 54 | 154 | | Depreciation and amortisation | 721 | 656 | 446 | 403 | | Fair value changes taken to PL | (1,289) | (1,418) | (871) | (1,226) | | Foreign currency revaluation | (26) | 54 | (29) | (39) | | Profit from associates and joint ventures | (2) | (8) | – | – | | Total | 397 | 1,107 | (429) | (1) | Change in operating assets | | | | | | | --- | --- | --- | --- | --- | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Decrease/(increase) in derivative financial instruments | 14,746 | (25,886) | 14,113 | (24,384) | | Increase in debt securities, treasury bills and equity shares held | | | | | | at fair value through profit or loss | (4,113) | (6,173) | (8,588) | (4,319) | | Increase in loans and advances to banks and customers | (9,382) | (7,165) | (2,198) | (970) | | Net decrease/(increase) in prepayments and accrued income | 190 | (153) | 144 | (167) | | Net (increase)/decrease in other assets | (9,072) | 4,587 | (3,198) | 3,679 | | Total | (7,631) | (34,790) | 273 | (26,161) | Change in operating liabilities | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | (Decrease)/increase in derivative financial instruments | (12,814) | 23,137 | (13,032) | 22,001 | | Increase/(decrease) in deposits from banks, customer accounts, debt securities in issue and short positions | 32,068 | 2,008 | 17,650 | (4,981) | | Increase in accruals and deferred income | 213 | 58 | 165 | 25 | | Increase/(decrease) in amount due to parents/subsidiaries/ | | | | | | other related parties | 8,921 | (2,059) | 8,576 | (4,197) | | Net (decrease)/increase in other liabilities | (566) | 2,587 | (1,907) | 1,016 | | Total | 27,822 | 25,731 | 11,452 | 13,864 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 187 ![]() 33. Cash flow statement continued Changes in liabilities arising from financing activities | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Subordinated debt (including accrued interest): | | | | | | Opening balance | 10,357 | 11,457 | 9,803 | 10,899 | | Interest paid | (551) | (569) | (492) | (528) | | Repayment | (2,705) | (1,000) | (2,173) | (1,000) | | Foreign exchange movements | 225 | (102) | 235 | (92) | | Fair value changes from hedge accounting | 296 | (4) | 296 | (4) | | Accrued interest and others | 556 | 575 | 491 | 528 | | Closing balance | 8,178 | 10,357 | 8,160 | 9,803 | | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Senior debt (including accrued interest): | | | | | | Opening balance | 8,469 | 7,860 | 8,413 | 7,827 | | Proceeds from the issue | 2,500 | 3,134 | 2,455 | 3,114 | | Interest paid | (376) | (282) | (374) | (282) | | Repayment | (4,001) | (2,480) | (3,986) | (2,471) | | Foreign exchange movements | 29 | (45) | 30 | (44) | | Fair value changes from hedge accounting | 62 | – | 62 | – | | Accrued interest and others | 362 | 282 | (1,764) | 269 | | Closing balance | 7,045 | 8,469 | 4,836 | 8,413 | Senior debt is presented as part of debt securities in issue in the Group and Company balance sheets. 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 acquisition, are not subject to contractual restrictions, are subject to insignificant changes in value, are highly liquid and are held for the purpose of meeting short-term cash commitments. This includes products such as treasury bills and other eligible bills, short-term government securities, loans and advances to banks (including 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 identified by the Group and Company as being cash and cash equivalents based on the criteria described above. | | | | | | | --- | --- | --- | --- | --- | | | Group | | Company | | | | 2025 | 2024 | 2025 | 2024 | | | $million | $million | $million | $million | | Cash and balances at central banks | 64,943 | 56,665 | 52,348 | 45,233 | | Less: restricted balances | (2,893) | (2,859) | (984) | (1,160) | | Treasury bills and other eligible bills | 13,104 | 4,938 | 1,440 | 529 | | Loans and advances to banks | 4,387 | 2,481 | 2,701 | 1,724 | | Loans and advances to customers | 11,301 | 16,364 | 2,226 | 500 | | Investments | 273 | 830 | 272 | 640 | | Amounts owed by and due to subsidiary | 1,246 | 530 | 1,287 | 635 | | Total | 92,361 | 78,949 | 59,290 | 48,101 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 188 ![]() 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 additional information for key management compensation. Key management comprises non-executive directors, executive directors of Standard Chartered PLC, the Court directors of Standard Chartered Bank and the persons discharging managerial responsibilities (PDMR) of Standard Chartered PLC Group. | | | | | --- | --- | --- | | | 2025¹ | 2024 | | | $million | $million | | Salaries, allowances and benefits in kind | 47 | 40 | | Share-based payments | 40 | 38 | | Bonuses paid or receivable | – | 7 | | Termination benefits | – | 2 | | Total | 87 | 87 | 1 Following the Prudential Regulation Authority (PRA) publication of revised remuneration regulations on 15 October 2025, we have changed the structure of variable remuneration from 2025 onwards. This is reflected in the table above, with the value split between salaries, allowances and benefit in kind and share based payments in line with IAS 24. Transactions with directors and others Directors and officers have banking relationships with Group companies which are entered into in the normal course of business and on substantially the same terms as for comparable transactions with other persons of a similar standing or, where applicable, with other employees within limits acceptable to the PRA. These transactions did not involve more than the normal risk of repayment or present other unfavourable features At 31 December 2025, the total amounts to be disclosed under the Companies Act 2006 (the Act) about loans to directors were as follows: | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Advances and credits | 4 | – | | Deposits | 32 | – | As at 31 December 2025, Standard Chartered Bank had in place a charge over $69 million (31 December 2024: $68 million) of cash assets in favour of the independent trustee of its employer financed retirement benefit scheme. Other than as disclosed in the Annual Report and Accounts, there were no other transactions, arrangements or agreements outstanding for any director, connected person or officer of the Company which have to be disclosed under the Act. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 189 ![]() 35. Related party transactions continued Group | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | | 2024 | | | | Due from/to | | | | Due from/to | | | | | | subsidiary | | Subordinated | | subsidiary | | Subordinated | | | | undertakings | | liabilities and | | undertakings | | liabilities and | | | | and other | Derivative | other | | and other | Derivative | other | | | | related | financial | borrowed | Debt | related | financial | borrowed | Debt | | | parties | instruments | funds | Securities | parties | instruments | funds | Securities | | | $million | $million | $million | $million | $million | $million | $million | $million | | Assets | | | | | | | | | | Ultimate parent company | 167 | 783 | – | 19 | 51 | 1,111 | – | 14 | | Fellow subsidiaries of SC PLC Group | 5,067 | 9,347 | – | 426 | 5,133 | 12,811 | – | 416 | | | 5,234 | 10,130 | – | 445 | 5,184 | 13,922 | – | 430 | | Liabilities | | | | | | | | | | Ultimate parent company | 14,677 | 362 | 7,828 | 8,310 | 11,331 | 167 | 10,015 | 8,096 | | Fellow subsidiaries of SC PLC Group | 22,595 | 9,227 | – | 977 | 16,915 | 11,153 | – | 966 | | | 37,272 | 9,589 | 7,828 | 9,287 | 28,246 | 11,320 | 10,015 | 9,062 | | | | | | | | --- | --- | --- | --- | --- | | | | 2025 | | | | | Fees and | Fees and | | | | | commission | commission | Interest | Interest | | | income | expense | income | expense | | | $million | $million | $million | $million | | Ultimate parent company | – | – | – | 1,479 | | Fellow subsidiaries of SC PLC Group | 231 | 270 | 94 | 874 | | | 231 | 270 | 94 | 2,353 | | | | | | | | --- | --- | --- | --- | --- | | | | 2024 | | | | | Fees and | Fees and | | | | | commission | commission | Interest | Interest | | | income | expense | income | expense | | | $million | $million | $million | $million | | Ultimate parent company | – | – | – | 1,604 | | Fellow subsidiaries of SC PLC Group | 288 | 270 | 160 | 736 | | | 288 | 270 | 160 | 2,340 | 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 participate 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 subsidiaries. Associates and joint ventures 2025 $million 2024 $million Assets Financial Assets held at FVTPL 10 – Derivative assets 5 5 | | | | | --- | --- | --- | | | | Total assets 15 5 | | Liabilities | | | | Deposits | 69 | 30 | | Derivative liabilities | 3 | 4 | | Total liabilities | 72 | 34 | | Loan commitments and other guarantees¹ | 107 | 12 | 1 The maximum loan commitments and other guarantees during the year was $107 million (31 December 2024: $12 million). #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 190 ![]() 35. Related party transactions continued Company | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | | | 2024 | | | | Due from/to | | | | Due from/to | | | | | | subsidiary | | Subordinated | | subsidiary | | Subordinated | | | | undertakings | | liabilities and | | undertakings | | liabilities and | | | | and other | Derivative | other | | and other | Derivative | other | | | | related | financial | borrowed | Debt | related | financial | borrowed | Debt | | | parties | instruments | funds | Securities | parties | instruments | funds | Securities | | | $million | $million | $million | $million | $million | $million | $million | $million | | Assets | | | | | | | | | | Ultimate parent company | 167 | 783 | – | 19 | 51 | 1,111 | – | 11 | | Subsidiaries and fellow subsidiaries of SC | | | | | | | | | | PLC Group | 11,371 | 12,863 | – | 5,087 | 9,980 | 17,546 | – | 4,283 | | | 11,538 | 13,646 | – | 5,106 | 10,031 | 18,657 | – | 4,294 | | Liabilities | | | | | | | | | | Ultimate parent company | 14,677 | 362 | 7,828 | 8,310 | 11,323 | 167 | 9,475 | 8,096 | | Subsidiaries and fellow subsidiaries of SC | | | | | | | | | | PLC Group | 36,303 | 13,336 | – | 83 | 30,990 | 15,518 | – | 16 | | | 50,980 | 13,698 | 7,828 | 8,393 | 42,313 | 15,685 | 9,475 | 8,112 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | 2025 | | | | | Fees and | Fees and | | | | | | commission | commission | Interest | Interest | Dividend | | | income | expense | income | expense | income | | | $million | $million | $million | $million | $million | | Ultimate parent company | – | – | – | 1,468 | – | | Subsidiaries and fellow subsidiaries of SC PLC Group | 443 | 382 | 486 | 1,322 | 1,260 | | | 443 | 382 | 486 | 2,790 | 1,260 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | 2024 | | | | | Fees and | Fees and | | | | | | commission | commission | Interest | Interest | Dividend | | | income | expense | income | expense | income | | | $million | $million | $million | $million | $million | | Ultimate parent company | – | – | – | 1,563 | – | | Subsidiaries and fellow subsidiaries of SC PLC Group | 504 | 325 | 589 | 1,212 | 1,052 | | | 504 | 325 | 589 | 2,775 | 1,052 | As at 31 December 2025, Standard Chartered Bank had in place a charge over $69 million (31 December 2024: $68 million) 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 participate 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 Directors’ Report and Financial Statements 2025 | Standard Chartered 191 ![]() 36. Auditor’s remuneration Auditor’s remuneration is included within other general administration expenses. The amounts paid by the Group to their principal auditor, 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 provision of other services. | | | | | --- | --- | --- | | | 2025 | 2024 | | | $million | $million | | Audit fees for the Standard Chartered PLC Group statutory audit | 36.9 | 31.3 | | Of which fees for the statutory audit of Standard Chartered Bank Group | 27.3 | 23.2 | | Fees payable to EY for other services provided to the Standard Chartered Bank Group: | | | | Audit of Standard Chartered Bank subsidiaries | 8.9 | 8.1 | | Total Audit fees | 45.8 | 39.4 | | Audit -related assurance services | 4.9 | 4.1 | | Other assurance services | 4.9 | 4.8 | | Other non-audit services | 1.3 | 0.4 | | Transaction related services | 0.6 | 0.6 | | Total fees payable | 57.5 | 49.3 | The following is a description of the type of services included within the categories 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 interim financial information, reporting on regulatory returns, reporting to a regulator on client assets and extended work performed over financial information and controls authorised by those charged with governance • Other assurance services include agreed-upon-procedures in relation to statutory and regulatory filings • Transaction related services are fees payable to EY LLP for issuing comfort letters. Expenses incurred in respect of their role as auditors were reimbursed to EY LLP $1 million (2024: $1 million). 37. Remuneration of directors This table sets out salary (including salary shares), pension and benefits received in 2025 and variable remuneration awards received in respect of 2025. | | | | | --- | --- | --- | | | 2025 1 | 2024 2 | | | £million | £million | | Salaries and fees | 7,401 | 8,707 | | Pension | 349 | 457 | | Benefits | 635 | 539 | | Annual incentive | 5,464 | 4,418 | | Vesting of LTIP awards | 8,364 | 7,932 | | Total fees payable | 22,213 | 22,053 | 1 Following shareholder approval of the new remuneration policy at the May 2025 AGM, Bill Winters and Diego De Giorgi’s salaries reduced by 40 per cent and 33 per cent respectively, effective from 1 April 2025. 2 The values of vesting 2022-24 LTIP awards have been restated based on the final vesting outcome of 88 per cent and actual share price of £11.908 when the awards vested in March 2025. Additional information on the remuneration elements in the above single total figure table. Salaries and fees The total salaries of the three directors as at 1 January 2025 (or the date of appointment, if later) was £5,117,000. From 1 January to 31 March 2025, two of the directors received their salary 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 was determined based on the monetary value and the prevailing market price of the Group’s shares on the date of allocation. Following shareholder approval of the new remuneration policy at the May 2025 AGM, Bill Winters and Diego De Giorgi’s salaries reduced by 40 per cent and 33 per cent respectively, effective from 1 April 2025 and all three salaries are now paid fully in cash. The emoluments, including share-based payments and other benefits, of the highest paid director during 2025 were £12,694,475 (2024: £12,694,475). There were employer pension contributions for the highest paid director during 2025 of £175.425 (2024: £251,700). The total annualised fees of the Chairman and directors as at 1 January 2025 (or the date of appointment, if later) were £3,442,158. There is no apportionment of remuneration between Standard Chartered Bank and Standard Chartered PLC. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 192 37. Remuneration of directors continued 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 PLC Group can be found in the SC PLC Group’s 2025 Directors’ remuneration report on pages 182 to 185. The directors who are also employees of the PLC Group received a flexible benefits allowance in alignment with the UK workforce to include a mixture of core pension and benefits provision, including private medical cover, life assurance and permanent health insurance. Some directors use a Group car service for travelling and, in some circumstances, were accompanied by their spouses to attend events. From 2025 for those directors who are also employees of the PLC Group, 30 per cent of annual incentive awards will be in deferred share awards, to be delivered pro-rata over three years. The proportion deferred will fall to 15 per cent over 3 years once an executive director has met their shareholding requirement. Vesting of LTIP awards The long-term incentive plan (LTIP) awards granted in March 2022 vested in March 2025, based on performance over the years 2022 to 2024. 88 per cent of these awards vested. The LTIP awards granted in March 2023 are due to vest in March 2026, based on performance over the years 2023 to 2025. Following an assessment of the performance measures (RoTE with CET1 underpin, relative TSR, sustainability 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 2026, the end of the three-year performance period. Based on a share price of £15.95, the three-month average to 31 December 2025, the projected value to be delivered to the directors is £8,363,962. The highest paid director has not exercised any share options during the year. An LTIP award of 816,213 shares was made in May 2025 to the highest paid director, at a share price of £10.675 (adjusted for loss of dividend), which are subject to the satisfaction of stretching RoTE, relative TSR and sustainability performance measures over three years (2025 to 2027). 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 115 to 119. Further information on the remuneration for those directors who are also executive directors of the PLC Group can be found in the PLC Group’s 2025 Directors’ remuneration report on pages 180 to 183. 38. Post balance sheet events There have been no material events after the reporting date that require disclosure or adjustment in these financial statements. #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 193 ![]() 39. Related undertakings of the Group As at 31 December 2025, 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 subsidiaries of the Group. Unless otherwise indicated, all related undertakings are held indirectly. Subsidiary Undertakings | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | SC (Secretaries) Limited ix | 100 | 1 | | SCMB Overseas Limited v | 100 | 1, 151 | | Standard Chartered Africa Limited v | 100 | 1, 151 | | Standard Chartered Bank i | 100; 100 Q,T | 1 | | Standard Chartered Foundation ix | 100 | 1, 146 | | Standard Chartered Health Trustee (UK) | | | | Limited ix | 100 | 1 | | Standard Chartered Nominees (Private | | | | Clients UK) Limited i | 100 | 1 | | Standard Chartered Securities (Africa) | | | | Holdings Limited v | 100 | 1, 151 | | Standard Chartered Trustees (UK) Limited ix | 100 | 1 | | Bricks (C&K) LP ix | 100 Y | 2, 146 | | Bricks (C) LP ix | 100 Y | 2, 146 | | Bricks (T) LP ix | 100 Y | 2, 146 | | Corrasi Covered Bonds LLP ix | 75 AA | 3 | | Standard Chartered Grindlays Pty Limited v | 100 | 5 | | Standard Chartered Bank Insurance Agency | | | | (Proprietary) Limited i | 100 | 7 | | Standard Chartered Investment Services | | | | (Proprietary) Limited i | 100 | 7 | | Standard Chartered Bank Botswana | | | | Limited i | 75.827 | 7 | | Standard Chartered Botswana Nominees | | | | (Proprietary) Limited i | 100 | 7 | | Standard Chartered Botswana Education | | | | Trust ix | 100 AB | 7 | | Standard Chartered Representação e | | | | Participações Ltda i | 100 | 8 | | Standard Chartered Securities (B) Sdn Bhd i | 100 | 97 | | SCB Investment Holding Company Limited v | 100 A | 102 | | Standard Chartered Global Business | | | | Services Co., Ltd vii | 100 | 12, 148 | | Standard Chartered Global Business | | | | Services (Guangzhou) Co., Ltd. vii | 100 | 109, 148 | | Standard Chartered Bank Cote d’Ivoire SA ix | 100 | 14 | | Standard Chartered Bank AG i | 100 | 16 | | Standard Chartered Bank Ghana PLC i | 69.416; | | | | 87.043 T | 18 | | Standard Chartered Ghana Nominees Limited i | 100 | 18 | | Standard Chartered Wealth Management | | | | Limited Company i | 100 | 19 | | Standard Chartered PF Real Estate (Hong | | | | Kong) Limited v | 100 | 75 | | Standard Chartered Private Equity Limited v | 100 | 20 | | Standard Chartered Asia Limited v | 100; 100 AD | 20 | | Standard Chartered Global Business | | | | Services Private Limited viii | 100 | 22 | | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Standard Chartered Finance Private Limited viii | 98.895 | 23 | | Standard Chartered Capital Limited i | 100 | 138 | | Standard Chartered Securities (India) Limited i | 100 | 87 | | Standard Chartered (India) Modeling and Analytics Centre Private Limited viii | 100 | 26 | | Standard Chartered Assurance Limited i | 100; 100 M | 29 | | Standard Chartered Isle of Man Limited i | 100 | 29 | | Standard Chartered Securities (Japan) | | | | Limited i | 100 | 30 | | SCB Nominees (CI) Limited i | 100 | 31 | | Standard Chartered Bancassurance | | | | Intermediary Limited i | 100 | 32 | | Standard Chartered Investment Services | | | | Limited v | 100 | 32 | | Standard Chartered Bank Kenya Limited i | 74.318; | | | | 100 J | 32 | | Standard Chartered Securities (Kenya) | | | | Limited i | 100 | 32 | | Standard Chartered Financial Services Limited i | 100 | 32 | | Standard Chartered Kenya Nominees Limited i | 100 | 32 | | Standard Chartered Metropolitan Holdings | | | | SAL v | 100 A | 33 | | Cartaban (Malaya) Nominees Sdn Berhad i | 100 | 34 | | Cartaban Nominees (Asing) Sdn Bhd i | 100 | 34 | | Cartaban Nominees (Tempatan) Sdn Bhd i | 100 | 34 | | Golden Maestro Sdn Bhd v | 100 | 34 | | Price Solutions Sdn Bhd i | 100 | 34 | | SCBMB Trustee Berhad ix | 100 | 34 | | Standard Chartered Bank Malaysia Berhad i | 100; 100 S | 34 | | Standard Chartered Saadiq Berhad i | 100 | 34 | | Resolution Alliance Sdn Bhd v | 91 | 35, 146 | | Standard Chartered Global Business | | | | Services Sdn Bhd viii | 100 | 103 | | Standard Chartered Bank (Mauritius) | | | | Limited i | 100 | 38 | | Standard Chartered Private Equity | | | | (Mauritius) Limited i | 100 | 101 | | Standard Chartered Private Equity | | | | (Mauritius) II Limited i | 100 | 101 | | Standard Chartered Private Equity | | | | (Mauritius) lll Limited i | 100 | 101 | | Subcontinental Equities Limited v | 100 | 39 | | Standard Chartered Bank Nepal Limited i | 70.21 | 40 | | Standard Chartered Holdings (Africa) B.V. v | 100 | 1, 149 | | Standard Chartered Holdings (Asia Pacific) B.V. v | 100 | 1, 149 | | Standard Chartered Holdings | | | | (International) B.V. v | 100 | 1, 149 | | Standard Chartered MB Holdings B.V. v | 100 | 1, 149 | | Standard Chartered Bank Nigeria Limited i | 100; 100 N,T | 42 | | Standard Chartered Capital & Advisory | | | | Nigeria Limited i | 100 | 42 | | Standard Chartered Nominees (Nigeria) | | | | Limited i | 100 | 42 | | Standard Chartered Bank (Pakistan) Limited i | 98.986 | 43 | | Standard Chartered Group Services, Manila | | | | Incorporated viii | 100 | 44 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 194 ![]() 39. Related undertakings of the Group #### continued | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Standard Chartered Global Business | | | | Services spółka z ograniczoną | | | | odpowiedzialnością viii | 100 | 45 | | Standard Chartered Capital (Saudi Arabia) i | 100 | 104 | | Standard Chartered Real Estate Investment | | | | Holdings (Singapore) Private Limited v | 100 | 46 | | Raffles Nominees (Pte.) Limited i | 100 | 47 | | SCTS Capital Pte. Ltd i | 100 | 48 | | SCTS Management Pte. Ltd. i | 100 | 48 | | Standard Chartered Bank (Singapore) | | | | Limited i | 100 A,B,C,U,V,W | 48 | | Standard Chartered Trust (Singapore) | | | | Limited ix | 100 | 48 | | Standard Chartered Holdings (Singapore) | | | | Private Limited v | 100 | 48 | | Standard Chartered Nominees (Singapore) | | | | Pte Ltd i | 100 | 48 | | Trust Bank Singapore Limited i | 60 | 118 | | Standard Chartered Nominees South Africa | | | | Proprietary Limited (RF) i | 100 | 52 | | Standard Chartered Bank Tanzania Limited i | 100; 100 J | 53 | | Standard Chartered Tanzania Nominees | | | | Limited i | 100 | 53 | | Standard Chartered Bank (Thai) Public | | | | Company Limited i | 99.871 | 54 | | Standard Chartered Yatirim Bankasi Turk | | | | Anonim Sirket ii | 100 | 55 | | Standard Chartered Bank Uganda Limited i | 100 | 56 | | Standard Chartered Bank International | | | | (Americas) Limited i | 100 | 100 | | Standard Chartered Holdings Inc. v | 100 | 61 | | Standard Chartered Securities (North | | | | America) LLC i | 100 AA | 61 | | Standard Chartered Trade Services | | | | Corporation i | 100 | 83 | | Standard Chartered Bank (Vietnam) Limited i | 100 X | 64 | | Sky Harmony Holdings Limited v | 100 | 106 | | Standard Chartered Bank Zambia Plc i | 90 | 107 | | Standard Chartered Zambia Securities | | | | Services Nominees Limited i | 100 | 125 | | CMB Nominees (RF) Proprietary Limited ix | 100 | 52 | | Standard Chartered Funds VCC ix | 100 | 48 | | Standard Chartered Luxembourg S.A. i | 100 | 95 | | Berkeley Square Finance 1 Designated | | | | Activity Company i | 100 | 112 | | Slate One LLC i | 100 | 94 | | Actis Treit Holdings (Mauritius) Limited v | 62.001 A,B | 134, 146 | | Actis Treit Holdings No.1 (Singapore) Private | | | | Limited v | 100 | 141, 146 | | Actis Treit Holdings No.2 (Singapore) Private | | | | Limited v | 100 | 141, 146 | Fellow Subsidiaries | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | FinVentures UK Limited v | 100 | 1, 151 | | SC Ventures G.P. Limited v | 100 | 1 | | SC Ventures Innovation Investment L.P. v | 100 Y | 1 | | Standard Chartered I H Limited v | 100 | 1, 151 | | Standard Chartered Strategic Investments | | | | Limited v | 100 | 1, 151 | | SC Ventures Holdings Limited v | 100; 100 M | 1 | | Zodia Markets (UK) Limited i | 100 | 1 | | Zodia Markets Holdings Limited v | 83.96 | 1 | | Zodia Custody Limited iv | 95.1; | | | | 15.132 K | 96 | | Zodia Holdings Limited v | 100 A | 96 | | Assembly Payments UK Ltd iv | 100 | 4, 146 | | CurrencyFair (UK) Limited i | 100 | 4, 146 | | Zai Technologies Limited iv | 100 | 4, 146 | | Assembly Payments Australia Pty Ltd iv | 100 | 119, 146 | | Zai Australia Pty Ltd iv | 100 | 11 | | CurrencyFair Australia Pty Ltd iv | 100 | 6, 146 | | CurrencyFair (Canada) Ltd iv | 100 | 10, 146 | | Guangzhou CurrencyFair Information | | | | Technology Limited iv | 100 | 13,146,147 | | Solvezy Technology Ghana Ltd iv | 100 | 17 | | CurrencyFair Asia Limited iv | 100 | 85, 146 | | Zodia Custody (Hong Kong) Limited iv | 100 | 120 | | Assembly Payments India Private Limited iv | 100 | 86 | | SCV Research and Development Pvt. Ltd. iv | 100 | 105 | | PT Labamu Sejahtera Indonesia iv | 100 | 27 | | CurrencyFair Limited iv | 100 | 135, 146, 153 | | CurrencyFair Nominees Limited iv | 100 | 133, 146 | | Zodia Markets (Ireland) Limited i | 100 | 121 | | Zodia Custody (Ireland) Limited iv | 100 | 122 | | Solvezy Technology Kenya Limited iv | 100 | 32 | | Assembly Payments Malaysia Sdn. Bhd. iv | 100 | 37, 146 | | PromisePay Limited iv | 100 | 41, 146 | | Standard Chartered Private Equity | | | | (Singapore) Pte. Ltd v | 100 | 46 | | Audax Financial Technology Pte. Ltd iv | 100 A | 132 | | CashEnable Pte. Ltd. iv | 100 A | 131 | | Letsbloom Pte. Ltd. iv | 100 A | 84 | | Libeara (Singapore) Pte. Ltd. iv | 100 | 84 | | Libeara Pte. Ltd. v | 100 | 84 | | SCV Research and Development Pte. Ltd. iv | 100 A | 143 | | Zodia Custody (Singapore) Pte. Ltd. iv | 100 | 143 | | Power2SME Pte. Ltd. v | 91.577 | 131 | | SCV Master Holding Company Pte. Ltd. v | 100; 100 M | 131 | | Solv-India Pte. Ltd. v | 100 | 131 | | CurrencyFair (Singapore) Pte.Ltd iv | 100 | 49, 146 | | Assembly Payments SGP Pte. Ltd. iv | 100 | 50, 146 | | Assembly Payments Pte. Ltd. iv | 100; 100 J | 50, 146 | | Furaha Finserve Uganda Limited i | 100 | 57 | | Appro Onboarding Solutions FZ-LLC iv | 100 | 58 | | Financial Inclusion Technologies Ltd v | 100 A | 88 | | Furaha Holding Ltd v | 100; 100 B | 59 | | myZoi Financial Inclusion Technologies LLC iv | 100 | 60 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 195 ![]() 39. Related undertakings of the Group #### continued | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | CurrencyFair (USA) Inc iv | 100 AC | 63, 146 | | Stanchart Nominees Limited i | 100 | 1, 152 | | Standard Chartered Holdings Limited v | 100 | 1, 147, 151, 152 | | Standard Chartered NEA Limited v | 100 | 1, 147, 151 | | Standard Chartered Nominees Limited i | 100 | 1, 152 | | Standard Chartered (Guangzhou) Business | | | | Management Co., Ltd. ii | 100 | 108, 147, 148 | | Standard Chartered Bank (China) Limited i | 100 | 69, 147, 148 | | Standard Chartered Securities (China) Limited i | 100 | 70, 147, 148 | | Horsford Nominees Limited i | 100 | 71 | | Marina Acacia Shipping Limited vi | 100 | 72 | | Marina Amethyst Shipping Limited vi | 100 | 72 | | Marina Angelite Shipping Limited vi | 100 | 72 | | Marina Beryl Shipping Limited vi | 100 | 72 | | Marina Emerald Shipping Limited vi | 100 | 72 | | Marina Flax Shipping Limited vi | 100 | 72 | | Marina Gloxinia Shipping Limited vi | 100 | 72 | | Marina Hazel Shipping Limited vi | 100 | 72 | | Marina Ilex Shipping Limited vi | 100 | 72 | | Marina Iridot Shipping Limited vi | 100 | 72 | | Marina Mimosa Shipping Limited vi | 100 | 72 | | Marina Moonstone Shipping Limited vi | 100 | 72 | | Marina Peridot Shipping Limited vi | 100 | 72 | | Marina Sapphire Shipping Limited vi | 100 | 72 | | Marina Tourmaline Shipping Limited vi | 100 | 72 | | Standard Chartered Securities (Hong Kong) | | | | Limited i | 100 | 72 | | Marina Leasing Limited vi | 100 | 72 | | Standard Chartered Leasing Group Limited v | 100 | 72 | | Standard Chartered Trade Support (HK) | | | | Limited i | 100 | 72 | | Mox Bank Limited i | 74.36 | 73 | | Standard Chartered Bank (Hong Kong) Limited i | 100 A,B,C,D | 74 | | Standard Chartered Trustee (Hong Kong) | | | | Limited ix | 100 | 76 | | Standard Chartered Funding (Jersey) Limited v | 100 | 77 | | Standard Chartered Bank Korea Limitedi | 100 | 78 | | Standard Chartered Securities Korea Co., Ltd i | 100 | 79 | | Marina Morganite Shipping Limited vi | 100 | 113, 150 | | Marina Moss Shipping Limited vi | 100 | 113, 150 | | Marina Tanzanite Shipping Limited vi | 100 | 113, 150 | | Marina Angelica Shipping Limited vi | 100 | 80, 150 | | Marina Aventurine Shipping Limited vi | 100 | 80, 150 | | Marina Citrine Shipping Limited vi | 100 | 80, 150 | | Marina Dahlia Shipping Limited vi | 100 | 80, 150 | | Marina Dittany Shipping Limited vi | 100 | 80, 150 | | Marina Lilac Shipping Limited vi | 100 | 80, 150 | | Marina Lolite Shipping Limited vi | 100 | 80, 150 | | Marina Obsidian Shipping Limited vi | 100 | 80, 150 | | Marina Quartz Shipping Limited vi | 100 | 80, 150 | | Marina Remora Shipping Limited vi | 100 | 80, 150 | | Marina Turquoise Shipping Limited vi | 100 | 80, 150 | | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Marina Zircon Shipping Limited vi | 100 | 80, 150 | | Price Solution Pakistan (Private) Limited i | 100 | 81 | | Standard Chartered Bank (Taiwan) Limited i | 100 | 82 | | Letsbloom India Private Limited iv | 100 | 90 | | Qatalyst Pte. Ltd. iv | 72.727 | 131 | | Solv Vietnam Company Limited iv | 100 X | 91 | | TASConnect (Hong Kong) Private Limited iv | 100 | 92 | | TASConnect (Malaysia) Sdn. Bhd. iv | 100 | 36 | | TASConnect (Shanghai) Financial | | | | iv | 100 | 136, 148 | | Technology Pte. Ltd | | | | Zodia Custody Australia Pty. Ltd. iv | 100 | 114 | | Zodia Markets (AME) Limited iv | 100 | 115 | | Zodia Markets (Jersey) Limited iv | 100 | 117 | | Fourtwothree Pte. Ltd iv | 100 | 84 | | HAL Holding Ltd iv | 100 | 140 | | Zodia Custody (Europe) S.A. iv | 100 | 116 | | Anchorpoint Financial Limited iv | 50.5 | 20 | | Appro Marketing Solutions L.L.C iv | 100 | 126 | | CFZ Holding Limited iv | 29.96;100 A | 135 | | Currencyfair Group Limited iv | 100 | 135,146 | | Nusavest Pte. Ltd. iv | 100 | 131 | | Regwise Ltd iv | 100 | 145 | | Standard Chartered Services Holdings Limited v | 100 | 1 | | Standard Chartered Services Limited viii | 100 | 1 | | Tungsten Custody Solutions FZE iv | 100 | 93 | | Tungsten Custody Solutions Ltd iv | 100 | 62 | | Tungsten Holding Limited iv | 100 | 62 | | Zodia Markets Technology Services FZCO iv | 0.1 | 25 | Associates | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Clifford Capital Holdings Pte. Ltd. v | 9.9 | 98 | | Verified Impact Exchange Holdings Pte. Ltd i | 13 | 99 | | Seychelles International Mercantile Banking | | | | Corporation Limited. i | 22 | 65 | Significant investment holdings and other related undertakings | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Corrasi Covered Bonds (LM) Limited i | 20 | 3, 146 | | ATSC Cayman Holdco Limited v | 5.272 A ;100 B | 127 | | Actis Temple Stay Holdings (HK) Limited v | 39.689 A ; | | | | 39.689 B | 128, 146 | | Mikado Realtors Private Limited ix | 26 | 129 | | Industrial Minerals and Chemical Co. Pvt. Ltd ix | 26 | 142 | | Paxata, Inc. iii | 40.74 O ; | | | | 8.908 P | 63 | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 196 ![]() 39. Related undertakings of the Group #### continued In liquidation | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Subsidiary Undertakings | | | | Standard Chartered Masterbrand Licensing | | | | Limited ix | 100 | 110 | | Birdsong Limited ix | 100 | 66 | | Nominees One Limited ix | 100 | 66 | | Nominees Two Limited ix | 100 | 66 | | Songbird Limited ix | 100 | 66 | | Standard Chartered Secretaries (Guernsey) | | | | Limited ix | 100 | 66 | | Standard Chartered Trust (Guernsey) Limited ix | 100 | 66 | | Standard Chartered Financial Services | | | | (Luxembourg) S.A. ix | 100 | 67 | | Banco Standard Chartered en Liquidacion ix | 100 | 111 | | Standard Chartered Uruguay | | | | Representacion S.A. ix | 100 | 68 | | SC Transport Leasing 1 LTD ix | 100 | 130 | | SC Transport Leasing 2 Limited ix | 100 | 130 | | Standard Chartered Leasing (UK) Limited ix | 100 | 130 | | Fellow Subsidiaries | | | | Standard Chartered Trust (Hong Kong) | | | | Limited i | 100 | 76 | Subsidiary/Associate undertakings and Significant investment holdings – Liquidated/dissolved/sold | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Subsidiary Undertakings | | | | The SC Transport Leasing Partnership 1 vi | 100 Y | 1 | | The SC Transport Leasing Partnership 2 vi | 100 Y | 1 | | The SC Transport Leasing Partnership 3 vi | 100 Y | 1 | | The SC Transport Leasing Partnership 4 vi | 100 Y | 1 | | Standard Chartered Bank Cameroon S.A. i | 100 | 9 | | Standard Chartered Bank Gambia Limited i | 74.852 | 15 | | Standard Chartered Leasing (UK) 3 Limited vi | 100 | 144 | | Cerulean Investments LP ix | 100 Y | 144 | | Standard Chartered IL&FS Management | | | | (Singapore) Pte. Limited ix | 50 | 51 | | St Helen’s Nominees India Private Limited i | 100 | 24 | | Standard Chartered Private Equity Advisory | | | | (India) Private Limited viii | 100 | 24 | | Fellow Subsidiaries | | | | Assembly Payments HK Limited iv | 100 | 21, 146 | | Standard Chartered Research and Technology India Private Limited iv | 100 A,R | 123 | | CurrencyFair (Canada) Limited iv | 100 | 28,146 | | Tawi Fresh Kenya Limited iv | 100 | 32 | | Pegasus Dealmaking Pte. Ltd. iv | 100 | 143 | | Promisepay (PTY) Ltd iv | 100 | 124, 146 | | Marina Partawati Shipping Pte. Ltd. vi | 100 | 137 | | SC Ventures Management Consulting | | | | (Shenzhen) Limited ix | 100 | 139, 147 | | Marina Opah Shipping Pte. Ltd. vi | 100 | 144 | | | | | | --- | --- | --- | | | Proportion of | | | | shares held | | | Name | (%) | Footnotes | | Marina Cobia Shipping Pte. Ltd. vi | 100 | 144 | | Marina Aquata Shipping Pte. Ltd. vi | 100 | 144 | | Marina Aruana Shipping Pte. Ltd. vi | 100 | 144 | | Associates | | | | Fintech for International Development Ltd | | | | (In Liquidation 03/01/2024) ix | 58.901 A | 89 | Footnotes Registered address | | | | | --- | --- | --- | | | Address | | | 1 | 1 Basinghall Avenue, London, EC2V 5DD, United Kingdom | | | 2 | 2 More London Riverside, London, SE1 2JT, United Kingdom | | | 3 | 5 Churchill Place, 10 th floor, London, E14 5HU, United Kingdom | | | 4 | Robert Denholm House, Bletchingly Road, Nutfield, Redhill, | | | | RH1 4HW, United Kingdom | | | 5 | Level 5, 345 | George St, Sydney NSW 2000, Australia | | 6 | Milsons Landing, Level 5, 6A Glen Street, Milsons Point NSW | | | | 2061, | Australia | | 7 | 5 th Floor Standard House Bldg, The Mall, Queens Road, PO | | | | Box 496, Gaborone, Botswana | | | 8 | Avenida Brigadeiro Faria Lima, no 3.477, 6 o andar, conjunto | | | | 62 – Torre Norte, Condominio Patio Victor Malzoni, CEP | | | | 04538-133, Sao Paulo, Brazil | | | 9 | 1155, | Boulevard de la Liberté, Douala, B.P. 1784, Cameroon | | 10 | 66 Wellington Street, West, Suite 4100, Toronto Dominion | | | | Centre, Toronto ON M5K 1B7, Canada | | | 11 | Level 1, 55 Collins Street, Melbourne VIC 3000, Australia | | | 12 | No. 35, Xinhuanbei Road, TEDA, Tianjin, 300457, China | | | 13 | Room 2619, | No 9, Linhe West Road, Tianhe District, | | | Guangzhou, China | | | 14 | Standard Chartered Bank Cote d’Ivoire, 23 Boulevard de la | | | | République, Abidjan 17, 17 B.P. 1141, Cote d’Ivoire | | | 15 | 8 Ecowas Avenue, Banjul, Gambia | | | 16 | TaunusTurm, Taunustor 1, 60310, Frankfurt am Main, Germany | | | 17 | Standard Chartered Bank Building, 87 Independance Avenue, | | | | Ridge, ACCRA, Greater ACCRA, GA-016-4621, Ghana | | | 18 | Standard Chartered Bank Building, No. 87, Independence | | | | Avenue, P.O. Box 768, Accra, Ghana | | | 19 | Standard Chartered Bank Ghana Limited, 87, Independence | | | | Avenue, Post Office Box 678, Accra, Ghana | | | 20 | 13/F Standard Chartered Bank Building, 4-4A Des Voeux | | | | Road Central, Hong Kong | | | 21 | 31/F, Tower 2 Times Square, 1 Matheson St, Causeway Bay, | | | | Hong Kong | | | 22 | 6 th Floor, Tower 3, DLF Downtown, 100 Feet Road, | | | | Tharamani, Chennai, Tamil Nadu, 600113, India | | | 23 | 90 M.G.Road, II Floor, Fort, Mumbai, Maharashtra, 400001, | | | | India | | | 24 | Ground Floor, Crescenzo Building, G Block, C 38/39, Bandra | | | | Kurla Complex, Bandra (East), Mumbai, Maharashtra, | | | | 400051, | India | | 25 | Unit RET-R5-186, Detached Retail R5,, Plot No: JLT-PH 2 - | | | | RET-R5, Jumeirah, United Arab Emirates | | | 26 | Vaishnavi Serenity, First Floor, No. 112, Koramangala | | | | Industrial Area, 5 th Block, Koramangala, Bangalore, | | | | Karnataka, 560095, India | | | 27 | The Icon Business Park Blok F No. 5, Desa/Kelurahan, Sampora | | | | Kec, Cisauk, Kab Tangerang Provinsi, Banten, 15345, Indonesia | | | 28 | 91 Pembroke Road, Dublin 4, Ballsbridge, Dublin, DO4 EC42, | | | | Ireland | | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 197 ![]() 39. Related undertakings of the Group #### continued | | | | | | --- | --- | --- | --- | | | Address | | | | 29 | Third Floor, St. George’s Court, Upper Church Street, Douglas, | | | | | IM1 1EE, Isle of Man | | | | 30 | 21/F, Sanno Park Tower, 2-11-1 Nagatacho, Chiyoda-ku, | | | | | Tokyo, 100-6155, Japan | | | | 31 | 15 Castle Street, St Helier, JE4 8PT, Jersey | | | | 32 | Standard Chartered@Chiromo, 48 Westlands Road, P. O. | | | | | Box 30003 – | 00100, | Nairobi, Kenya | | 33 | Atrium Building, Maarad Street, 3 rd Floor, P.O. Box 11-4081 | | | | | Raid El Solh, Beirut Central District, Lebanon | | | | 34 | Level 25, Equatorial Plaza, Jalan Sultan Ismail, 50250 Kuala | | | | | Lumpur, Malaysia | | | | 35 | Suite 18-1, Level 18, Vertical Corporate Tower B, Avenue 10, | | | | | The Vertical, Bangsar South City, No. 8, Jalan Kerinchi, | | | | | 59200 | Kuala Lumpur, Wilayah Persekutuan, Malaysia | | | 36 | Level 7, Mercu 3. No. 3, Jalan Bangsar, KL ECO City, 59200 | | | | | Kuala Lumpur, Malaysia | | | | 37 | Level 13, Menara 1 Sentrum 201, Jalan Tun Sambanthan, | | | | | Brickfields, 50470 Kuala Lumpur, Malaysia | | | | 38 | 6 th Floor, Standard Chartered Tower, 19, Bank Street, | | | | | Cybercity, Ebene, 72201, Mauritius | | | | 39 | Mondial Management Services Ltd, Unit 2L, 2 nd Floor | | | | | Standard Chartered Tower, 19 Cybercity, Ebene, Mauritius | | | | 40 | Standard Chartered Bank Nepal Limited, Madan Bhandari | | | | | Marg. Ward No.31, Kathmandu Metropolitan City, Kathmandu | | | | | District, Bagmati Province, Kathmandu, 44600, Nepal | | | | 41 | PromisePay, 4 All good Place, Rototuna North, Hamilton, | | | | | 3210, | New Zealand | | | 42 | 142, Ahmadu Bello Way, Victoria Island, Lagos, 101241, Nigeria | | | | 43 | P.O. Box No. 5556, I.I. Chundrigar Road, Karachi, 74000, | | | | | Pakistan | | | | 44 | 8 th Floor, Makati Sky Plaza Building 6788, Ayala Avenue San | | | | | Lorenzo, City of Makati, Fourth District, National Capi, 1223, | | | | | Philippines | | | | 45 | Rondo Ignacego Daszyńskiego 2B, 00-843, Warsaw, Poland | | | | 46 | 8 Marina Boulevard, #25-01 Marina Bay Financial Centre, | | | | | 018981, | Singapore | | | 47 | 7 Changi Business Park Crescent, #03-00 Standard | | | | | Chartered @ Changi, 486028, Singapore | | | | 48 | 8 Marina Boulevard, #27-01 Marina Bay Financial Centre | | | | | Tower 1, 018981, | Singapore | | | 49 | 1 Robinson Road, #17-00, AIA Tower, 048542, Singapore | | | | 50 | 38 Beach Road, #29-11 South Beach Tower, 189767, | | | | | Singapore | | | | 51 | Abogado Pte Ltd, No. 8 Marina Boulevard, #05-02 MBFC | | | | | Tower 1, 018981, | Singapore | | | 52 | 2 nd Floor, 115 West Street, Sandton, Johannesburg, 2196, | | | | | South Africa | | | | 53 | 1 Floor, International House, Shaaban Robert Street/Garden | Avenue, PO Box 9011, Dar Es Salaam, Tanzania, United | | | | Republic of | | | | 54 | No. 140, 11 th , 12 th and 14 th Floor, Wireless Road, Lumpini, | | | | | Patumwan, Bangkok, 10330, Thailand | | | | | | | | --- | --- | --- | | | Address | | | 55 | Buyukdere Cad. Yapi Kredi Plaza C Blok, Kat 15, Levent, | | | | Istanbul, 34330, Turkey | | | 56 | Standard Chartered Bank Bldg, 5 Speke Road, PO Box 7111, | | | | Kampala, Uganda | | | 57 | 14 Mackinnon Road, Nakasero, Kampala, 141769, Uganda | | | 58 | Arjaan Office Towers, Office 105, Dubai Media City, United | | | | Arab Emirates | | | 59 | Unit IH-00-01-07-OF-05, Level 7, IH-00-01-CP-05, Dubai | | | | International Financial Centre, Dubai, United Arab Emirates | | | 60 | Part of Level 15, Standard Chartered Bank Building, Plot 8, | | | | Burj Downtown, Dubai, United Arab Emirates | | | 61 | Corporation Trust Center, 1209 Orange Street, Wilmington | | | | DE 19801, | United States | | 62 | Office 1809, 18 | Floor Sky Tower, Shams Abu Dhabi, Al Reem | | | Island, Abu Dhabi, United Arab Emirates | | | 63 | 251 | Little Falls Drive, Wilmington DE 19808, United States | | 64 | Level 3, #CP1.L01 and CP2.L01, Capital Place, 29 Lieu Giai, | | | | Ngoc Ha Ward, Hanoi, 10000, Vietnam | | | 65 | Victoria House, State House Avenue, Victoria, MAHE, | | | | Seychelles | | | 66 | Bucktrout House, Glategny Esplanade, St Peter Port, GY1 | | | | 3HQ, Guernsey | | | 67 | 30 Rue Schrobilgen, 2526, Luxembourg | | | 68 | Luis Alberto de Herrera 1248, Torre II, Piso 11, Esc. 1111, Uruguay | | | 69 | Standard Chartered Tower, 201 Century Avenue, Pudong, | | | | Shanghai, 200120, | China | | 70 | 1201 1-2, 15-16, 12/F, Unit No.1, Building No.1, No. 1 Dongsanhuan | | | | Zhong Road, Chaoyang District, Beijing, China | | | 71 | 18/F., Standard Chartered Tower, 388 Kwun Tong Road, | | | | Kwun Tong, Kowloon, Hong Kong | | | 72 | 15/F., Two International Finance Centre, No. 8 Finance | | | | Street, Central, Hong Kong | | | 73 | 39/F., Oxford House, Taikoo Place, 979 King’s Road, Quarry | | | | Bay, Hong Kong | | | 74 | 32/F., 4-4A Des Voeux Road, Central, Hong Kong | | | 75 | 14 th Floor, One Taikoo Place, 979 King’s Road, Quarry Bay, | | | | Hong Kong | | | 76 | 14/F, Standard Chartered Bank Building, 4-4A Des Voeux | | | | Road, Central, Hong Kong | | | 77 | IFC 5, St Helier, JE1 1ST, Jersey | | | 78 | 47, Jong-ro, Jongno-gu, Seoul, 110-702, Korea, Republic of | | | 79 | 2F, 47, Jong-ro, Jongno-gu, Seoul, Korea, Republic of | | | 80 | Trust Company Complex, Ajeltake Road, Ajeltake Island, | | | | Majuro, MH96960, Marshall Islands | | | 81 | 3 rd Floor Main SCB Building, I.I Chundrigar Road, Karachi, | | | | Sindh, 74000, | Pakistan | | 82 | 1F, No.177 & 3F-6F, 18F, No.179, Liaoning Street, Zhongshan | | | | Dist., Taipei, 104, Taiwan (Province of China) | | | 83 | C/O Corporation Service Company, 251 Little Falls Drive, | | | | Wilmington DE 19808, United States | | | 84 | 16 Raffles Quay, #16-02, Hong Leong Building, 048581, | | | | Singapore | | | 85 | Suite 12100, | 12/F., YF Life Tower, 33 Lockhart Road, Wan | | | Chai, Hong Kong | | | 86 | | 1 st Floor, UB Plaza, No. 1 & 2, Vittal Mallya Road, Bengalur, India | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 198 ![]() 39. Related undertakings of the Group #### continued | | | | | | | --- | --- | --- | --- | --- | | | Address | | | | | 87 | 12 th Floor, Crescenzo Business District,, Plot no. C-38/39, | | | | | | G-Block,, Bandra – Kurla Complex, Bandra East,, Mumbai, | | | | | | Maharashtra, 400051, India | | | | | 88 | 16 th Floor, WeWork Hub 71, Al Khatem Tower, ADGM | | | | | | Square, Al Maryah Island, Abu Dhabi, United Arab Emirates | | | | | 89 | Parker Andrews Ltd, 5 th Floor. The Union Building, 51-59 Rose | | | | | | Lane, Norwich, NR1 1BY | | | | | 90 | Unit 1 – 127A, WeWork Futura, Magarpatta Road, Kirtane | | | | | | Baug, Hadpsar I.E., Pune – 411013, Maharashtra, India | | | | | 91 | L17-11, Floor 17, Vincom Center, 72 Le Thanh Ton, Ben Nghe | | | | | | Ward, District 1, Ho Chi Minh City, Vietnam | | | | | 92 | 30 th floor, One Taikoo Place, 979 King’s Road, Hong Kong, | | | | | | Hong Kong | | | | | 93 | 5.01 and 5.02 Convention Tower, DWTC, Dubai, United | | | | | | Arab Emirates | | | | | 94 | Al Tamimi & Company International Limited, Tornado | | | | | | Tower, No. 17, 19 th Floor, Doha, Qatar | | | | | 95 | 53 Boulevard Royal, Grand Duchy of Luxembourg, 2449, | | | | | | Luxembourg | | | | | 96 | 1 st Floor, 6-8 Eastcheap, London, EC3M 1AE | | | | | 97 | G01-02, Wisma Haji Mohd Taha Building,, Jalan Gadong, | | | | | | BE4119, | | Brunei Darussalam | | | 98 | 38 Beach Road, #19-11 South Beach Tower, 189767, Singapore | | | | | 99 | 10 Marina Boulevard #08-08, Marina Bay Financial Centre, | | | | | | 018983, | | Singapore | | | 100 | 1095 | Avenue of Americas, New York City NY 10036, | | | | | United States | | | | | 101 | c/o Ocorian Corporate Services (Mauritius) Ltd, 6 th Floor, | | | | | | Tower A,1, Exchange Square, Wall Street, Ebene, Mauritius | | | | | | – | 72201, | Mauritius | | | 102 | c/o Maples Finance Limited, PO Box 1093 GT, Queensgate | | | | | | House, Georgetown, Grand Cayman, Cayman Islands | | | | | 103 | Level 1, Wisma Standard Chartered, Jalan Teknologi 8,, | | | | | | Taman Teknologi Malaysia, Bukit Jalil,, 57000 Kuala | | | | | | Lumpur, Wilayah Persekutuan, Malaysia | | | | | 104 | Al Faisaliah Office Tower Floor No 7 (T07D), King Fahad | | | | | | Highway, Olaya District, P.O box 295522, Riyadh, 11351, Saudi | | | | | | | Arabia | | | | 105 | No. 2734, | | 3 rd Floor, Sector – I, HSR Layout, Bangalore, 560102, | | | | India | | | | | 106 | | | The Company’s Registered Office, Vistra Corporate Services | | | | | | Centre, Wickhams Cay II, Road Town, Tortola, VG1110, Virgin | | | | Islands, British | | | | | 107 | Standard Chartered House, Stand No. 4642, Corner of | | Mwaimwene Road and Addis Ababa Drive, Lusaka, Lusaka, | | | | 10101, | Zambia | | | | 108 | Units 1101B (Office use only), No. 235 Tianhebei Rd., Tianhe | | | | | | District, Guangzhou City, Guangdong Province, China | | | | | 109 | Unit 802B, 803, 1001A,1002B,1003-1005,1101-1105, 201- | | | | | | 1205,1302C,1303, | | No. 235 | Tianhe North Road, Tianhe District, | | | Guangzhou City, Guangdong Province, China | | | | | 110 | C/O Teneo Financial Advisory Limited, The Colmore | | | | | | Building, 20 Colmore Circus, Queensway, Birmingham, B4 | | | | | | 6AT, United Kingdom | | | | | 111 | Jiron Huascar 2055, Jesus Maria, Lima, 15072, Peru | | | | | 112 | 10 Earlsfort Terrace, Dublin 2, Dublin, D02 T380, Ireland | | | | | | | | | --- | --- | --- | | | Address | | | 113 | TMF Trust Labuan Limited, Brumby Centre, Lot 42, Jalan | | | | Muhibbah, 87000 Labuan F.T., Malaysia | | | 114 | c/o King & Wood Mallesons, Level 61, Governor Phillip | | | | Tower, 1 Farrer Place, Sydney NSW 2000, Australia | | | 115 | 2402B, | 24 th Floor, Tamouh Tower, Tamouh, Abu Dhabi, Al | | | Reem Island, United Arab Emirates | | | 116 | 2 Place de Paris, 2314, Luxembourg | | | 117 | No 1 Grenville Street, St Helier, JE2 4UF, Jersey | | | 118 | 77 Robinson Road, #25-00 Robinson 77, 068896, Singapore | | | 119 | Level 22, 120 | Spencer Street, Melbourne VIC 3000, Australia | | 120 | Room 1915, | 19/F, Lee Garden One, 33 Hysan Avenue, | | | Causeway Bay, Hong Kong | | | 121 | One Central Plaza, Temple Bar, Dublin 2, Dublin, D02 EF64, | | | | Ireland | | | 122 | 27 Fitzwilliam Street, Dublin, D02 TP23, Ireland | | | 123 | No. 2734, | Sector-I, HSR Layout, HSR Layout, Bangalore, | | | Bangalore South, Karnataka, 560102, India | | | 124 | 1 st Floor Building 33, Waterford Office Park, Waterford Drive, | | | | Fourways, Gauteng, 2191, South Africa | | | 125 | Stand No. 4642, Corner of Mwaimwena Road and Addis | | | | Ababa Drive, Lusaka, 10101, Zambia | | | 126 | BurDubai First Business Center Office number B2007-258, | | | | Dubai, United Arab Emirates | | | 127 | Avenue,George Town, Grand Cayman, KY1-9005, Cayman | Intertrust Corporate Services (Cayman) Limited, 190 Elgin | | | Islands | | | 128 | Unit 605-07, 6/F Wing OnCentre, 111 Connaught Road, | | | | Central,Sheung Wan, Hong Kong | | | 129 | 1221 | A, Devika Tower, 12 th Floor, 6 Nehru Place, New Delhi 110019 | | 130 | The Colmore Building, 20 Colmore Circus, Queensway, | | | | Birmingham, B4 6AT, United Kingdom | | | 131 | 9 Raffles Place, #18-21 Republic Plaza, 048619, Singapore | | | 132 | Acclime Singapore Pte. Ltd, 9 Raffles Place #18-21, Republic | | | | Plaza, 048619, | Singapore | | 133 | WeWork, One Central Plaza, Dame Street, Dublin 2, Dublin, | | | | D02 K7K5, Ireland | | | 134 | IQEQ Corporate Services (Mauritius) Ltd, 33, Edith Cavell | | | | Street, Port Louis, 11324, Mauritius | | | 135 | One, Central Plaza, Dame Street, Dublin 2, Dublin, D02 | | | | K7K5, Ireland | | | 136 | Level C, No. 888 2 nd Huanhu West Road, Nanhui New Town, | | | | Pudong New Area, Shanghai, China | | | 137 | 8 Marina Boulevard, Level 26, Marina Bay Financial Centre, | | | | Tower 1, 018981, | Singapore | | 138 | 12 th Floor, Parinee Crescenzo Building, Plot C-38 & 39, G Block | | | | Bandra (E) Opp. MCA Ground, Mumbai, 400051, India | | | 139 | Unit 8C-17B, Xinlikang Building, 3044 Xinghai Blvd, Nanshan | | | | District, Shenzhen, China | | | 140 | Dedicated desk # 14-123-039, 15 th Floor, Al Khatem Tower, | | | | ADGM Square, Abu Dhabi, United Arab Emirates | | | 141 | 6 Battery Road #13-01, 049909, Singapore | | | 142 | 4thFloor, 274, Chitalia House, Dr. Cawasji Hormusji Road, | | | | Dhobi Talao, Mumbai City, Maharashtra, India 400 002, | | | | Mumbai, 400 002, India | | | 143 | 9 Raffles Place, #26-01 Republic Plaza, 048619, Singapore | | | 144 | Ground Floor, Two Dockland Central, Guild Street, North | | | | Dock, Dublin, D01 K2C5, Ireland | | | 145 | 100 | Longwater Avenue, Reading, Berkshire, RG2 6GP, United | | | Kingdom | | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 199 ![]() 39. Related undertakings of the Group #### continued Other notes | | | | | --- | --- | --- | | | Other notes | | | 146 | The Group has determined that these undertakings are | | | | excluded from being consolidated into the Groups | | | | accounts, and do not meet the definition of a Subsidiary | | | | under IFRS. See note 32 for the consolidation policy and | | | | disclosure of the undertaking. | | | 147 | Registered as a Limited company under the Law of China | | | 148 | Limited liability company | | | 149 | The Group has determined the principal place of operation | | | | to be United Kingdom | | | 150 | The Group has determined the principal place of operation | | | | to be Hong Kong | | | 151 | Company is exempt from the requirements of the | | | | companies Act relating to the audit of individual accounts | | | | by virtue of S479A of the Companies Act 2006. Company | | | | names and associated numbers of the subsidiaries and | | | | fellow subsidiaries taking an audit exemption for the year | | | | ended 31 December 2025 are: | | | | Subsidiaries – SCMB Overseas Limited 01764223, Standard | | | | Chartered Africa Limited 00002877and Standard | | | | Chartered Securities (Africa) Holdings Limited 05843604. | | | | Fellow subsidiaries – Standard Chartered Holdings Limited | | | | 02426156, | Standard Chartered I H Limited 08414408, | | | Finventures UK Limited 04275894, Standard Chartered | | | | Strategic Investments Limited 01388304 and Standard | | | | Chartered NEA Limited 05345091. | | | | In line with section 479C of the Companies Act 2006, the | | | | Parent undertaking (Standard Chartered PLC Company) | | | | guarantees all outstanding liabilities to which the subsidiary | | | | company is subject at the end of the financial year | including external liabilities of Finventures UK Limited | | | ($2.3million) and Standard Chartered NEA Limited | | | | ($22.0million). In line with section 479C of the Companies | | | | Act 2006, | the Parent undertaking (Standard Chartered | | | subsidiary company is subject to at the end of the financial | Bank) guarantees all outstanding liabilities to which the | | | year including external liabilities of SCMB Overseas Limited | | | | ($6.3million) | | | 152 | Directly held related undertaking | | | 153 | Group’s ultimate ownership for CurrencyFair entities is | | | | 43.422% | | Description of shares | | | | --- | --- | | | Description | | A | Class A Ordinary shares | | B | Class B Ordinary shares | | C Class C Ordinary shares | | | D Class D Ordinary shares | | | E | Class A2 shares | | F | Class B Shares | | G | Class B Equity interest | | H | Series A Preferred | | I Series B Preferred | | | J | Preference shares | | K | Series A preference shares | | L Series B preference shares | | | M Redeemable preference shares | | | N | Series B Redeemable preference shares | | O | Series C2 preference shares | | P | Series C3 preference shares | | Q | Redeemable non-cumulative preference shares | | R | Compulsory convertible cumulative preference shares | | S | Irredeemable convertible preference shares | | T | Irredeemable non-cumulative preference shares | | U | Class B Non-cumulative preference shares | | V Class C Non-cumulative preference shares | | | W | Class D Non-cumulative preference shares | | X Charter capital | | | Y | Limited Partnership | | Z | Partnership Interest | | AA | Membership interest | | AB | Trust | | AC | Uncertificated | | AD | Deferred shares | | AE | Guarantee | Business activity | | | | --- | --- | | | Activity | | i | Banking & Financial Services | | ii | Commercial real estate | | iii | Data Analytics | | iv | Digital Venture | | v | Investment holding company | | vi | Leasing and Finance | | vii | Research & development | | viii | Support Services | | ix | Others | #### Notes to the financial statements Directors’ Report and Financial Statements 2025 | Standard Chartered 200 ![]() #### Supplementary financial information Contractual maturity of Loans, Investment securities and Deposits 2025 Loans and advances to banks $million Loans and advances to customers $million Investment securities – Treasury and other eligible Bills $million Investment securities – Debt securities $million Investment securities – Equity shares $million Bank deposits $million Customer accounts $million One year or less 46,755 117,651 49,518 15,537 – 30,760 301,796 Between one and five years 8,710 46,613 – 47,830 – 4,284 6,560 Between five and ten years 881 13,746 – 10,911 – 4 532 Between ten years and fifteen years 164 6,410 – 4,032 – – 47 More than fifteen years and undated 122 20,677 – 18,887 578 – 10 Total 56,632 205,097 49,518 97,197 578 35,048 308,945 Total amortised cost and FVOCI exposures 24,771 159,254 Of which: Fixed interest rateexposures 19,843 81,749 Of which: Floating interest rateexposures 4,928 77,505 2024 Loans and advances to banks $million Loans and advances to customers $million Investment securities – Treasury and other eligible Bills $million Investment securities – Debt securities $million Investment securities – Equity shares $million Bank deposits $million Customer accounts 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 Maturity and yield of Debt securities, alternative tier one and other eligible bills held at amortised cost One year or less Between one and fiveyears Between five and tenyears More than ten years Total $million Yield % $million Yield % $million Yield % $million Yield % $million Yield % Central and other government agencies • US 1,823 1.08 7,694 1.62 1,381 2.15 4,197 2.59 15,095 1.87 • UK 78 0.50 286 2.90 49 0.88 – – 413 2.21 • Other 1,786 3.19 4,528 3.11 1,829 3.51 8 9.78 8,151 3.22 Other debt securities 1,395 6.67 2,426 6.00 4,088 4.86 2,343 – 10,252 5.22 As at 31 December 2025 5,082 3.35 14,934 2.81 7,347 3.99 6,548 3.15 33,911 3.21 One year or less Between one and fiveyears Between five and tenyears More than ten years Total $million Yield % $million Yield % $million Yield % $million Yield % $million Yield % Central and other government agencies • US 1,172 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 securities 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 #### Supplementary information Directors’ Report and Financial Statements 2025 | Standard Chartered 201 ![]() The maturity distributions are presented in the above table on the basis of contractual maturity dates. The weighted average yield for each range of maturities is calculated by dividing the annualised interest income for the year by the book amount of debt securities at that date. Insured and uninsured deposits SCB operates and provides services to customers across many countries and insured deposits is determined on the basis of limits enacted within local regulations. 2025 2024 Insured deposits Uninsured deposits Total $million Insured deposits Uninsured deposits Total $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Current accounts 10 8,040 21,091 129,483 158,624 8 6,104 17,356 118,803 142,271 Savings deposits – 6,399 – 17,304 23,703 – 6,161 – 17,224 23,385 Time deposits 27 6,657 6,368 108,171 121,223 – 5,646 5,900 93,675 105,221 Other deposits – 51 7,552 32,840 40,443 – 104 9,030 35,426 44,560 Total 37 21,147 35,011 287,798 343,993 8 18,015 32,286 265,128 315,437 UK and non-UK deposits The following table summarises the split of Bank and Customer deposits into UK and non-UK deposits for respective account lines based on the domicile or residence of the clients. 2025 2024 UK deposits Non-UK deposits Total $million UK deposits Non-UK deposits Total $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Bank deposits $million Customer accounts $million Current accounts 403 7,241 20,698 130,282 158,624 478 5,751 16,886 119,156 142,271 Savings deposits – 42 – 23,661 23,703 – 40 – 23,345 23,385 Time deposits 566 7,403 5,829 107,425 121,223 315 7,473 5,585 91,848 105,221 Other deposits 950 11,944 6,602 20,947 40,443 2,317 12,795 6,713 22,735 44,560 Total 1,919 26,630 33,129 282,315 343,993 3,110 26,059 29,184 257,084 315,437 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 liabilities for the periods ended 31 December 2025 and 31 December 2024 under the revised definition of net interest margin. For the purpose of these tables, average balances have been determined on the basis of daily balances, except for certain categories, for which balances have been determined less frequently. The Group does not believe that the information presented in these tables would be significantly different had such balances been determined on a daily basis. Average assets 2025 Average non-interest earning balance $million Average interest earning balance $million Interest income $million Gross yield % Gross yield total balance % Cash and balances at central banks 6,184 59,592 2,105 3.53 3.20 Gross loans and advances to banks 35,124 22,421 1,175 5.24 2.04 Gross loans and advances to customers 52,774 160,398 8,988 5.60 4.22 Impairment provisions against loans and advances to banks and customers – (3,224) – – – Investment securities – Treasury and Other Eligible Bills 19,271 21,068 1,009 4.79 2.50 Investment securities – Debt Securities 20,172 83,112 3,517 4.23 3.41 Investment securities – Equity Shares 1,397 – – – – Due from subsidiary undertakings and other related parties – 5,521 94 1.70 1.70 Property, plant and equipment and intangible assets 4,312 – – – – Prepayments, accrued income and other assets 105,773 – – – – Investment associates and joint ventures 128 – – – – 245,135 348,888 16,888 4.84 2.84 Adjustment for trading book funding cost and others 788 Total average assets 245,135 348,888 17,676 5.07 2.98 #### Supplementary information Directors’ Report and Financial Statements 2025 | Standard Chartered 202 ![]() Average balance sheets and yields and volume and price variances continued Average assets 2024 Average non-interest earning balance $million Average interest earning balance $million Interest income $million 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 provisions against loans and advances to banks and customers – (3,589) – – – Investment securities – Treasury and Other Eligible Bills 11,204 18,502 1,244 6.72 4.19 Investment securities – Debt Securities 17,532 83,820 3,728 4.45 3.68 Investment securities – Equity Shares 2,201 – – – – Due from subsidiary undertakings and other related parties – 8,085 127 1.57 1.57 Property, plant and equipment and intangible assets 4,271 – – – – Prepayments, accrued income and other assets 80,414 – – – – Investment associates and joint ventures 145 – – – – 199,543 351,006 19,310 5.50 3.51 Adjustment for trading book funding cost and others 582 Total average assets 199,543 351,006 19,892 5.67 3.61 Average liabilities 2025 Average non-interest bearing balance $million Average interest bearing balance $million Interest expense $million Rate paid % Rate paid total balance % Deposits by banks 13,082 22,402 702 3.13 1.98 Customer accounts: Current accounts 28,097 108,875 3,013 2.77 2.20 Savings deposits – 23,926 471 1.97 1.97 Time deposits 10,647 100,278 4,745 4.73 4.28 Other deposits 36,357 4,591 187 4.07 0.46 Debt securities in issue 11,637 34,491 1,582 4.59 3.43 Due to parent companies, subsidiary undertakings & other related parties – 34,925 1,942 5.56 5.56 Accruals, deferred income and other liabilities 121,081 794 46 5.79 0.04 Subordinated liabilities and other borrowed funds – 8,390 485 5.78 5.78 Non-controlling interests 818 – – – – Shareholders’ funds 33,631 – – – – 255,350 338,672 13,173 3.89 2.22 Adjustment for trading book funding cost and others (2,326) Financial guarantee fees on interest earning assets Total average liabilities and shareholders’ funds 255,350 338,672 10,847 3.20 1.83 #### Supplementary information Directors’ Report and Financial Statements 2025 | Standard Chartered 203 ![]() Average liabilities 2024 Average non-interest bearing balance $million Average interest bearing balance $million Interest expense $million 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 securities in issue 11,633 27,857 1,653 5.93 4.19 Due to parent companies, subsidiary undertakings & other related parties – 29,325 4,573 15.59 15.59 Accruals, deferred income and other liabilities 94,604 572 36 6.29 0.04 Subordinated liabilities 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) Financial guarantee fees on interest earning assets Total average liabilities and shareholders’ funds 225,789 324,760 13,012 4.01 2.36 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, divided by average interest-earning assets excluding financial assets measured at fair value through profit or loss. 2025 $million 2024 $million Interest income (reported) 16,888 19,310 Adjustment for trading book funding cost and others 788 582 Interest Income adjusted for trading book funding cost and others 17,676 19,892 Average interest earning assets 348,888 351,006 Gross yield (%) 5.07 5.67 Interest expense (reported) 13,173 14,910 Adjustment for trading book funding cost and others (2,326) (1,898) Interest expense adjusted for trading book funding cost and others 10,847 13,012 Average interest-bearing liabilities 338,672 324,760 Rate paid (%) 3.20 4.01 Net yield (%) 1.87 1.66 Adjusted net interest income 1 6,829 6,880 Net interest margin (%) 1.96 1.96 1 Adjusted net interest income has been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to reflect the reclassification of funding cost mismatches to non-net interest income (Non NII). Adjusted NII is reported NII less trading book funding cost, treasury currency management activities, cash collateral and prime service. #### Supplementary information Directors’ Report and Financial Statements 2025 | Standard Chartered 204 ![]() 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 liabilities, 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 liabilities. 2025 versus 2024 2024 versus 2023 (Decrease)/increase in interest due to: Net increase/ (decrease) in interest $million (Decrease)/increase in interest due to: Net increase/ (decrease) in interest $million Volume $million Rate $million Volume $million Rate $million Interest earning assets Cash and unrestricted balances at central banks 149 (544) (395) (452) 139 (313) Loans and advances to banks (6) (115) (121) (121) 242 121 Loans and advances to customers (316) (1,110) (1,426) 421 586 1,007 Investment securities 81 (527) (446) (142) 260 118 Due from subsidiary undertakings and other related parties (44) 10 (34) 47 (50) (3) Total interest earning assets (136) (2,286) (2,422) (247) 1,177 930 Interest bearing liabilities Subordinated liabilities and other borrowed funds (265) 153 (112) 29 (34) (5) Deposits by banks 66 (92) (26) (19) 121 102 Customer accounts: Current accounts and savings deposits 187 1,447 1,634 90 (1,886) (1,796) Time and other deposits (137) (393) (530) (156) 654 498 Debt securities in issue 304 (375) (71) (192) 74 (118) Due to parent companies, subsidiary undertakings & other related parties 311 (2,943) (2,632) 403 2,053 2,456 Total interest bearing liabilities 466 (2,203) (1,737) 155 982 1,137 Return on assets 2025 $million 2024 $million Profit attributable to shareholders 3,376 2,943 Total assets 593,362 563,534 Return on assets 1 0.6% 0.5% 1 Represents profit attributable to Parent company shareholders divided by the total assets of the Group. #### Supplementary people information The following table summarises the number of employees within the Group and Company: Group 2025 2024 Business Support services Total Business Support services Total At 31 December 19,259 47,265 66,524 19,252 46,450 65,702 Average for the year 19,353 46,408 65,761 19,582 48,114 67,696 Company 2025 2024 Business Support services Total Business Support services Total At 31 December 8,076 11,744 19,820 7,880 12,307 20,187 Average for the year 7,992 11,939 19,932 8,162 12,927 21,089 #### Supplementary information Directors’ Report and Financial Statements 2025 | Standard Chartered 205 #### Important notices Forward-looking statements The information included in this document may contain ‘forward-looking statements’ based upon current expectations or beliefs as well as statements formulated with assumptions about future events. Forward-looking statements include, without limitation, projections, estimates, commitments, plans, approaches, ambitions and targets (including, without limitation, ESG commitments, ambitions and targets). Forward-looking statements often use words such as ‘may’, ‘could’, ‘will’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘believe’, ‘plan’, ‘seek’, ‘aim’, ‘continue’ or other words of similar meaning to any of the foregoing. Forward- looking statements may also (or additionally) be identified by the fact that they do not relate only to historical or current facts. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and other factorsthat could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or impliedin the forward-looking statements. Readers should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause the Group’s actual results and its plans and objectives to differ materially from those expressed or implied in forward-looking statements. The factors include (but are not limited to): changes in global, political, economic, business, competitive and market forces or conditions, or in future exchange and interest rates; changes in environmental, geopolitical, social or physical risks; legal, regulatory and policy developments, including regulatory measures addressing climate change and broader sustainability-related issues; the development of standards and interpretations, including evolving requirements and practices in ESG reporting; the ability of the Group, together with governments and other stakeholders to measure, manage, and mitigate the impacts of climate change and broader sustainability-related issues effectively; risks arising out of health crises and pandemics; risks of cyber-attacks, data, information or security breaches or technology failures involving the Group; changes in tax rates or policy; future business combinations or dispositions; and other factors specific to the Group, including those identified in this document and financial statements of the Group. To the extent that any forward-looking statements contained in this document are based on past or current trends and/or activities of the Group, they should not be taken as a representation that such trends or activities will continue in the future. No statement in this document is intended to be, nor should be interpreted as, a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date that it is made. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise. Please refer to this document and the financial statements of the Group for a discussion of certain of the risks and factors that could adversely impact the Group’s actual results, and cause its plans and objectives, to differ materially from those expressed or implied in any forward-looking statements. Financial instruments Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter. Caution regarding climate and environment related information Some of the climate and environment related information in this document is subject to certain limitations, and therefore the reader should treat the information provided, as well as conclusions, projections and assumptions drawn from such information, with caution. The information may be limited due to a number of factors, which include (but are not limited to): a lack of reliable data; a lack of standardisation of data; and future uncertainty. The information includes externally sourced data that may not have been verified. Furthermore, some of the data, models and methodologies used to create the information is subject to adjustment which is beyond our control, and the information is subject to change without notice. #### Supplementary information Directors’ Report and Financial Statements 2025 | Standard Chartered 206 ![]() #### www.sc.com