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Annual Report 2025
Strategic report
02 Who we are and what we do
04 Group Chair’s statement
06 Group Chief Executive’s statement
09 Our strategy
10 Our business model
12 Key performance indicators
14 Market environment
17 Group Chief Financial Officer's review
20 Client segment reviews
32 Our people and culture
37 Stakeholder engagement
42 Group Chief Risk Officer's review
50 Non-financial and sustainability information statement
51 Viability statement
Financial review
54 Financial summary
62 Underlying versus reported results reconciliations
65 Alternative performance measures
Sustainability review
68 Chief Sustainability Officer's review
75 Our approach to sustainability
83 Sustainable finance
90 Climate
111 Nature
113 Social impact
116 Managing Environmental and Social Risk
118 Integrity, conduct and ethics
122 Sustainability governance
Contents
Directors’ report
130 Board of Directors
135 Management Team
138 Corporate governance
155 Committee reports
180 Directors’ remuneration report
207 Other statutory and regulatory disclosures
217 Statement of directors’ responsibilities
Risk review and Capital review
220 Enterprise Risk Management Framework
226 Principal risks
233 Credit Risk
277 Traded Risk
281 Liquidity and Funding Risk
286 Operational and Technology Risk
287 Environmental, Social and Governance
andReputational Risk
303 Capital review
Financial statements
310 Independent Auditor’s report
322 Financial statements
329 Notes to the financial statements
Supplementary information
436 Supplementary financial information
444 Supplementary people information
450 Supplementary sustainability information
458 Climate reporting index
466 Shareholder information
470 Glossary
Discover more
in our suite of reports
Learn more about our
clientsegments
This Annual Report is part of a wider suite ofcorporate
reportsanddisclosures.
For our full suite of 2025 disclosures visit
sc.com/financial-results and sc.com/sustainabilitylibrary
Financial reporting
• Annual Report
• Bank Report
• Pillar 3 Report
Sustainability reporting
• Sustainable Finance Impact Report
• Transition Plan
• Nature Report
• DE&I Impact Report
• Modern Slavery Statement
Read more in our Client segment review on pages 20 to 31
For more information regarding reporting measures
andterms specific to this Annual Report, seepage478
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.
1 Reconciliations from underlying to reported and definitions of alternative performance measures can be found on pages 62 to 65.
2 Read more about our culture of inclusion on page 36, and about our Sustainability Aspirations on page 76.
3 Year-on-year growth in operating income and profit before tax is on a constant currency basis.
4 Senior leadership is defined as Managing Directors and Band 4 roles (including the Group Management Team).
2025 performance highlights
Return on tangible equity (RoTE)
Underlying basis
14.7%
300bps
Reported basis
11.9%
220bps
Common Equity Tier
1 ratio (CET1)
14.1%
-12bps
Above our 13-14%
targetrange
Total shareholder
return
89.0%
35.5ppt
Financial KPIs
1
Diversity and
inclusion: women
insenior roles
4
33.0%
-0.3ppt
Mobilising
sustainable
finance
$157bn
$34bn
Non-financial KPIs
2
Operating income
Underlying basis
$20,894m
6%
Reported basis
$20,942m
7%
Profit before tax
Underlying basis
$7,900m
18%
Reported basis
$6,963m
18%
Earnings per share
Underlying basis
229.7 cents
61.6 cents
Reported basis
195.4 cents
54.1 cents
Other financial measures
1,3
Tangible net asset value per ordinary share
1,730 cents
189 cents
Employee net promoter score (eNPS)
17.56
-3.9 points
Annual Report 2025 | Standard Chartered 1
Strategic report
Who we are and what we do
Total operating income
$20,894m
Underlying basis
$20,942m
Reported basis
How we serve clients
We connect corporate, institutional and affluent clients
to growth opportunities across our network.
We serve three client segments
We’ve been supporting clients
since opening our doors in Mumbai,
Kolkata and Shanghai in 1858
and we remain the ambitious,
network-driven bank we set out to
be more than 170 years ago.
Corporate & Investment Banking
Supports large corporations, development organisations,
governments, and financial institutions with risk
management, advisory and financing solutions.
Operating income
Underlying basis
$12,394m
Reported basis
$12,349m
Operating income
Underlying basis
$8,464m
Reported basis
$8,465m
Wealth & Retail Banking
Serves the local and international banking needs
of our clients across the wealth continuum with a focus
on the affluent segment, while supporting small and
medium-sized enterprises.
Central and other items
Operating income
Underlying basis: $(379)m
Reported basis
$(287)m
Operating income
Underlying basis
$415m
Reported basis
$415m
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 banks – Mox and Trust.
Read more on our client segments on pages 20 to 31
Standard Chartered | Annual Report 20252
What makes us different
Our strength lies in the connectivity of
our markets, the diversity of our people
and the depth of our client relationships.
Where we operate
We operate in the world’s most
dynamic markets, which set the pace
for global growth and prosperity.
Our purpose and culture
Our distinctive culture has been developed in pursuit of our purpose – to drive commerce
and prosperity through our unique diversity.
We’re committed to promoting equality and inclusion, as it’s our diversity that sets us apart and helps us drive
business growth. We are guided by our valued behaviours, and our brand promise, here for good.
Our distinctive strengths, such as our expertise
in managing generational wealth, our commitment
to mobilising sustainable finance, and our innovative
approach, are just some of the qualities that set us apart.
Our strengths
Our footprint and network
We help clients do business across 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.
Read more in our business model on page 10
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 most.
We serve clients across
54
global locations
Read more on our people and culture on pages 32 to 36
Read more in our client segments on page 20 to 31
Do the right thing Never settle Better together
Our purpose
To drive commerce and prosperity through ourunique diversity.
Valued behaviours
Annual Report 2025 | Standard Chartered 3
Strategic report
Group Chair’s statement
image TBC
Power continues to be projected less through formal institutions
and established norms and more through economic leverage,
technological capability and control of strategic resources.
Assuch, the ability to sustain growth is increasingly determined
by access – to capital, to data, to energy, to supply chains,
andtoreliable networks. While many factors are reshaping
theglobal landscape, we must cut through the noise and identify
those trends that are most relevant to our clients, markets
andcommunities, and that play to our distinctive competitive
advantages. Bill explains some of these trends in his review;
Iwillhighlight the following:
• First is the promise of technology, much of which is
materialising in the form of enhanced productivity.
Technological advancement has radically changed the
industrial landscape and with it the business models,
investment decisions and competitive strengths of both
incumbents and new entrants alike. Many of the largest
corporates today are themselves technology companies
orotherwise heavily reliant on it as an enabler.
• Second, a broad digital transformation of finance, and the
banking system in particular, is underway. Adoption
isaccelerating, integration is deepening, and the boundary
between financial services and technology continues to
blur.Digital assets, tokenisation and the future of money
arenolonger theoretical. They are becoming embedded
inreal-world use cases – in trade, in payments and in capital
markets – demanding both innovation and rigorous risk
management from global banks.
Our strategy has never been clearer. We combine our
differentiated cross-border capabilities and leading
wealthmanagement expertise to connect clients to growth
opportunities across Asia, Africa and the Middle East. Across
thebusiness we are aligned to our strategic direction, having
simplified our structure to ensure we meet the needs of our
globally-minded clients, whether they are corporates, financial
institutions, individuals or families. Our capital position and
liquidity are robust, our risk discipline is well-embedded, and we
have proven our renewed ability to generate sustainable returns,
as evidenced by 2025 being the strongest year of financial
performance since the financial crisis.
Those achievements form a solid foundation on which we
nowbuild. But as we move forward, we do so in the knowledge
that the world is transforming. We must ensure our approach
continues to reflect our environment, by evaluating and
balancing the risks and opportunities presented by an
ever-changing landscape.
The friction and fracturing of our
operatingcontext
Our ability to remain agile and proactive is of paramount
importance. This is what our clients seek when partnering
withus, and it is what our people seek in working for Standard
Chartered. We helped our clients navigate the shifting
geopolitical and geoeconomic sands of 2025 to deliver a robust
performance. And, while worldwide growth and business
pragmatism have thus far prevailed, we remain acutely aware
that ongoing disruption is altering both clients’ needs and our
consideration of risk.
2025 marked my first year as Chair
ofStandard Chartered, and I am acutely
aware of the responsibility this entails.
AsIstepped into this role, I did so with
aprofound respect for my predecessor,
JoséViñals, who during his tenure, provided
steady, principled leadership through
aperiod of exceptional change for the
global banking system and the Group.
Maria Ramos
Group Chair
Standard Chartered | Annual Report 20254
• Third, and related to the first two factors, is the contest for
strategic resources that underpin the adoption of AI and
data-intensive technologies. This is driving unprecedented
demand for data centres, reliable energy and critical minerals,
further reshaping geopolitics, supply chains and investment
priorities, and reinforcing the strategic value of resilience,
access and partnership. It offers significant advantage to
those markets that can responsibly capitalise on their natural
resources. Such an endowment, if well-stewarded, can
present significant opportunity for economic and social
development, so we must endeavour to play a role that
facilitates suchoutcomes.
Against this backdrop, global governance is in focus. Financial
regulators are shifting from policy consultation and design
towards implementation and enforcement – while still
recognising their role in stimulating further economic growth.
Asregulatory convergence and coordination is sought, even
ifchallenging to achieve, as a Group we must retain the ability
toact decisively, particularly if we wish to capitalise on our
leadership position in digital assets and in our advocacy
foramodel of banking that is more transparent, secure
andimmediate.
In engaging in these trends, our conduct at Standard Chartered
must be underpinned by trust, discipline and accountability,
enabling clear decisions in complex markets. Good conduct
provides certainty to clients, supports prudent risk-taking, and
strengthens confidence across our markets, directly contributing
to sustainable growth and long-term success globally.
Maintaining strategic discipline and focus
The Group Management Team, under Bill’s leadership, continues
to show that our distinctive strategy is effective, agile and resilient
to the external environment. And the strong financial performance
outlined in the financial review later in this report reflects our
sharper focus and our improved discipline in execution. Therole
of the Board is to maintain this momentum and to translate our
clear strategic intent into sustained outcomes.
The Board’s confidence in management is grounded in
consistent delivery, sound judgement and their understanding
ofthe risks inherent in operating across our markets. The Board
remains rigorous in its oversight, challenging assumptions and
decisions and ensuring that performance is sustainable and
within our risk appetite. This balance – between trust and scrutiny
– is essential to good governance, particularly in avolatile
globalenvironment.
I believe resilience matters as much as ambition. A central
priority for the Board will therefore remain safeguarding the
Group’s financial strength, risk discipline and regulatory standing,
ensuring that the extraordinary growth opportunities we face are
pursued with care and that trade-offs are made transparently.
Relevance – to clients and to society – will also be central to our
approach. Standard Chartered operates in markets that are
critical to global growth and development, and we play an
important role in facilitating trade, investment and financial
inclusion. Our commitment to sustainability and responsible
finance is integral to our franchise and long-term value creation.
This is not about pursuing objectives in isolation but about
recognising that strong financial performance and positive
social impact are mutually reinforcing when approached with
discipline and integrity.
Such an approach is deeply valued by our clients, and it is often
cited as their reason for both choosing and remaining with us.
And, over the last year in particular, this has been highlighted
asan example of true differentiation from our global peers.
Culture as a strategic asset
In a global institution spanning diverse markets and regulatory
regimes, culture is not an abstract concept; it is a strategic asset.
As Chair, I experienced this firsthand during market visits in 2025
to Malaysia, Hong Kong, Singapore, the UAE, Mainland China,
and the US. While our footprint is diverse it is our inclusive,
collaborative, client-centric culture that sets us apart from our
peers and serves as a valuable anchor of continuity.
Standard Chartered’s valued behaviours – do the right thing,
never settle and better together – are central to how
wemanage risk, serve clients and build trust. The Board will
continue to focus on how these behaviours are reinforced
through leadership, incentives and everyday decision-making,
and on ensuring that the tone from the top is consistently
reflected throughout the organisation.
In fulfilling its responsibilities, the Board must maintain a
balanceand diversity of perspectives, skills and experience and
remain engaged, informed and forward-looking in its oversight.
During the year, Phil Rivett succeeded me as Senior Independent
Director when I took the role of Chair in May. Phil also became
Chair of the Board Risk Committee in August, with Jackie Hunt
taking over as Chair of the Audit Committee in September.
Pete Burrill was appointed as interim Group Chief Financial
Officer in February, succeeding Diego De Giorgi, who stepped
down as Executive Director and GCFO. The Board thanks Diego
for his contribution and wishes him well for the future.
The Board, as part of its core governance mandate, continues
tofocus on long term succession planning for the Board and
itsCommittees and provides oversight of detailed executive
andsenior management succession plans, ensuring the
Groupremains well positioned to deliver the strategy and
long-termobjectives.
Looking ahead with confidence
As Chair, I intend to act as a steward of this remarkable
institution – to preserve its strengths, to support its continued
improvement, and to help ensure that Standard Chartered
remains relevant and trusted for the long term.
Reflecting the Board’s confidence in the Group’s future prospects,
we are pleased to recommend an increased full-year dividend
of61 cents per share (a 65 per cent increase) and are announcing
afurther share buyback of $1.5 billion, in addition to the $2.8 billion
already announced over the course of 2025.
I would like to thank our clients for their trust, our colleagues for
their extraordinary commitment, and our shareholders for their
continued support. Together, we are building a stronger, more
resilient and even more distinctive Standard Chartered – one
that will continue to deliver sustainable performance and value
creation in the years ahead.
Maria Ramos
Group Chair, Standard Chartered PLC
24 February 2026
Annual Report 2025 | Standard Chartered 5
Strategic report
Group Chief Executive’s statement
We built additional momentum in 2025,leveraging our
distinct competitive advantages, and intend to capitalise
onthis in the years to come, having exceeded our 13 per cent
Return onTangible Equity (RoTE) milestone ayearearlier
thanguided.
Navigating a period of extraordinary change
We recognise that short-term results alone are not sufficient
in banking; lasting success comes from building long-term
resilience –for our clients, our communities and our own
organisation. Sustainable performance comes from adapting
to structural change and turning thatintodistinctive
clientvalue.
We continually assess the structural shifts shaping the
futureof finance – some of which I explore below – and refine
our strategic response to ensure that our current momentum
translates into long-term value. The strengths that have
fuelled our recent progress will continue to support our
success and adaptability as a financial services company,
even asmarkets evolve.
1. The emergence of a multipolar and
multi-alignedworld
The global marketplace is rapidly changing, with growth,
capital and innovation more widely distributed and
geopolitical alignment more fluid. As alliances form around
specific trade, security and investment priorities, this creates
new opportunities but also increased complexity in financing,
supply chains, procurement, and logistics for clients
operatinginternationally.
• We help our clients navigate change by using our strong
local presence across Asia, Africa and the Middle East
tofacilitate secure and compliant trade, investment
andwealth flows.
• Our investment over decades to develop these
capabilitiesgives us a structural competitive advantage.
• In relation to China, for example – which is neither
converging with other financial systems nor isolating
itself,but developing its own capital markets, payment
rails and international linkages – we have built a leading
RMB franchise in many of the markets in which we operate.
2. Digital transformation and evolving
clientexpectations
Money is becoming digital, programmable and increasingly
interoperable across systems.
Distributed ledger technology, tokenisation and new
settlement models are already reshaping payments,
securities issuance and settlement, custody and liquidity
management. These changes raise fundamental questions
about where trust and value will ultimately reside. History
suggests that financial innovation does not eliminate clients’
need for banks; it changes the form that banking takes.
Our performance in recent years has been
strong in both absolute terms and relative
to many of our peers. This is reflected in
keymetrics such asthe value of our client
franchise, financial results, and share price.
We have taken advantage of agenerally
supportive business environment. Shifts in
trade and investment driven by geopolitical
changes have worked in our favour, and
growth remains strong in our keymarkets.
Bill Winters
Group Chief Executive
Standard Chartered | Annual Report 20256
• We have built market-leading digital asset capabilities,
supporting clients across trading, custody, settlement
andtokenisation in a compliant and scalable way.
• Our approach is pragmatic, applying distributed ledger
technology where it solves real problems – particularly
incross-border payments, liquidity management and
market infrastructure – rather than pursuing novelty
foritsown sake.
• We are modernising our financial plumbing while preserving
the trust on which the system depends, partnering where
necessary with those that share thisvision.
Digital-first banking models have reshaped client
expectations across all segments, with clients increasingly
prioritising convenience and consistency over physical
interaction. Such models are cheaper to run and easier to
scale, raising industry benchmarks for simplicity and speed.
• Through our uniquely diversified digital banking portfolio
across our markets, we serve distinct customer segments
while enhancing offerings in our core businesses.
Theseexperiences have improved customer satisfaction
and productivity across our Wealth & Retail Banking
(WRB)business.
• We are equally committed to advancing digital
engagement with our Corporate & Investment Banking
(CIB) clients, investing in new platforms, portals and digital
channels, making it easier for them to access services,
manage transactions and engage with us securely
andefficiently.
3. The changing role of banks in serving the
realeconomy
Banks are increasingly acting as service providers, credit
originators and intermediaries, connecting borrowers and
investors rather than holding risk alone.
The post-financial crisis capital rules strengthened the
systembut made bank capital more expensive for some
activities and changed the critical role of banks in serving
thereal economy. The role of non-bank financial institutions
in the provision of credit, pricing and liquidity, significantly
outpacing that of banks. This is not cyclical –itreflects
alasting reallocation of risk and capital that comes along
with banks having governments aslenders of lastresort.
• These trends play directly to our strengths. We provide
value to borrowers and investors through credit
origination, warehousing, structuring and distribution,
rather than balance-sheet accumulation alone.
• This is driving greater demand for cross-border hedging
and liquidity solutions, which we capture as valuable ‘flow’
business in our Global Markets franchise.
• Our experience across our unique geographic footprint
allows us to originate assets in markets, sectors and
corridors where others cannot. That origination capability
sits at the intersection of our corporate, institutional
andwealth businesses, allowing us to connect borrowers,
sponsors and investors in ways that are difficult to replicate.
4. Rising wealth participation is reshaping
capitalmarkets
Affluent individuals and corporates are moving beyond
deposits into equities, bonds and funds, while governments
and regulators promote infrastructure and private sector
growth. Capital markets across our footprint are transforming
rapidly. Economies that once relied on bank lending and
physical assets are shifting towards more accessible and
sophisticated financial systems. This is not cyclical yield-chasing,
but astructural change in how wealth is built, preserved
andtransferred.
Technology is an accelerator, enabling broader participation
and making capital markets integral to everyday economic
life – unlocking new channels for savings, generational wealth
transfer, investment and risk management.
• As capital markets expand, our ability to provide trusted
advice and innovative solutions becomes a critical
differentiator, ensuring we capture growth while helping
clients navigate complexity.
• Wealth continues to grow rapidly across our footprint with
the largest opportunities concentrated in our top markets,
and this expansion is becoming increasingly international.
Our affluent business is both large and high returning, driven
by clients’ growing need to manage and grow their assets,
and by our position as a top wealth manager in Asia.
We differentiate ourselves by combining deep local market
capabilities with global wealth and capital markets products
and services, allowing our clients to improve returns and
funding costs.
5. The transition economy and sustainable finance
The global transition to a lower-carbon economy will
significantly affect capital allocation for decades. But, as
wesaw in 2025, it will not follow a straight path. What has
changed is the pace and pattern of the transition itself –
more urgent because of accelerating climate impacts, more
volatile because of geopolitical and energy-market shocks,
and more centred on emerging markets where capital is
scarcest and where credible transition pathways, not just
green solutions, are now essential.
Asia, Africa and the Middle East will account for most of
thefuture global population growth, energy demand and
infrastructure investment. For these regions, the challenge
isnot whether to grow, but how to grow – balancing
development, affordability and sustainability.
• We have built one of the leading sustainable finance
franchises across our footprint, precisely because we
operate where the transition is most dynamic and
mostconsequential.
• Our role extends beyond financing renewable energy
tosupporting modernised grids, electrified transport,
emerging industries, sustainable trade and adaptation
– often in markets where capital is scarce andrisk is
misunderstood.
Sustainable finance, in this context, is not an overlay. Itisa
growth opportunity andcore capability that combines local
knowledge, cross-border capabilities, structuring expertise
and long-termclient relationships.
Annual Report 2025 | Standard Chartered 7
Strategic report
Taking the trends above together, they reinforce the logic
ofour strategy. We focus on areas where cross-border
connectivity matters, where clients value insight, access
andtrust. Whenwe describe Standard Chartered as a
super-connector, we mean something specific. We sit at
thecentre of the world’s most important trade and capital
corridors andhelp clients move money, manage risk, exchange
ideas and deploy capital across borders that others cannot
serveeffectively.
Further progress executing our
distinctivestrategy
Our robust performance in 2025 reflected the disciplined
execution of our strategy to maximise our areas of strongest
competitive advantage:
• Serving our international corporate, institutional and
individual clients with our differentiated cross-border
products and services.
• Helping our affluent customers manage their wealth
inourmarkets across Asia, Africa and the Middle East.
We specialise in providing creative solutions to complex
issues for these sophisticated and internationally oriented
clients. As Pete, our interim Group Chief Financial Officer,
willexplain in more detail, we made good progress in both
respects in 2025. I would like to take this opportunity to thank
Diego for his valuable contribution during his tenure. Pete
brings extensive sectoral experience and provides valuable
continuity to the leadership of our finance function.
Our distinctive model relies on the quality and resilience
ofour people. Our achievements in 2025 are a direct result
oftheir extraordinary commitment and ingenuity, and I want
to thank them for their dedication and for embracing the
challenges and opportunities of a rapidly changing world.
Iam most proud that people who are the best at what they
do choose to work at Standard Chartered, bringing their
expertise and insights to help us deliver an increasingly
distinctive client proposition. As we strive for excellence and
deepen our role as a super-connector, it is the collective spirit
and drive of our people that will define our next chapter.
Our ongoing focus on serving our clients in the most
productive way – through continuous transformation of our
technology, adoption of advanced data skills (including AI),
simplification of our processes, and disciplined expense
management – has served us well. Initiatives such as Fit for
Growth and other ongoing transformation programmes are
enabling us to grow income at a faster rate than expenses
while simultaneously enhancing the resilience of our
functions. Our transformation is not limited to operational
improvements; it is also underpinning a profound cultural
shift. We are building a bank that is agile, seamless and
trulyclient-centric, where collaboration and innovation are
not just aspirations but embedded in our daily practice.
Continuity of strategy under our new Chair
This year marks an important transition in our leadership,
asMaria Ramos succeeded José Viñals as Chair. We are
grateful to José for his steady guidance and commitment,
which have been instrumental in steering the bank through
adynamic period. Maria’s appointment brings both
continuity and freshperspective; she is exceptionally well
placed toguide usthrough the next chapter. For further
detailonhervision and priorities, I encourage you to read
Maria’s statement, where she sets out her objectives.
Looking ahead: this is (still) our time
This year, we and our clients confronted a global economy
and international system at what felt like an inflection point.
Trends previously considered medium-term have accelerated.
Trust and incrementalism – a belief that tomorrow will be
aslightly modified version of today – have given way to
amoresubstantial re-think. In response, markets and key
actorsare re-wiring their financial systems’ connectivity,
security alliances, trading routes and infrastructure, and
technological dependencies.
Our unique business model with its trusted network of
deeply-rooted local franchises has always thrived in febrile
environments, and we expect the prevailing conditions to
continue for the foreseeable future. Our strategy is designed
to enable us to endure change, to support clients asthe world
becomes more complex and as their own needs evolve, and
toensure that we remain relevant, resilient and trusted over
the long term. We allocate capital, talent and technology
accordingly – and we are equally deliberate about what
wechoose not to do.
We remain committed to sharing our success with our
shareholders and will continue to actively manage our
capitalposition with this objective in mind. We are therefore
announcing a further share buyback programme of$1.5 billion,
to commence imminently.
This bank has been transformed in the last ten years, from
atraditional, broad-based commercial bank into a focused,
structurally more profitable, and distinctly positioned
international institution. But what got us here will not get
usto where we want to be over the next decade. We will
explain more about our plans at our capital markets event
inMay of this year, where we will describe our next phase
ofgrowth and the expected financial effects of our plans.
Bill Winters
Group Chief Executive
24 February 2026
Group Chief Executive’s statement
Standard Chartered | Annual Report 20258
Our strategy
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.
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.
• 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 of $1.5 billion over five
years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
Sustainability
Cross-border
Combining differentiated
cross-border capabilities…
Affluent
…with leading wealth
management expertise
Network income
~70% of CIB income
inmediumterm
Income from financial
institution clients
~60% of CIB income
inmediumterm
Wealth
Solutions
income
Double-digit
CAGR from
2025to 2029
Affluent
income
75% of WRB
income
Net new
money
$200bn from
2025 to 2029
Annual Report 2025 | Standard Chartered 9
Strategic report
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
Our resources
Our resources provide the strong foundation
that helps us deliver our strategy.
Our businesses
We bring together three interconnected client
segments, delivering a range of products and services,
supported by our leading Sustainability business.
Human capital
Diversity differentiates us; it is in our purpose
statement. Delivering our strategy rests on how
wecontinue to invest in our people, the employee
experience and culture.
Brand recognition
We are a leading international banking group with
170 years of history. In many of our markets, we are
ahousehold name.
International network
Our network is our unique competitive advantage
and connects corporates, financial institutions,
individuals and small and medium-sized enterprises
across some of the world’s fastest-growing and most
dynamic markets.
Financial strength
With our solid balance sheet and prudent financial
management, we are a strong and trusted partner
for our clients.
Local expertise
We are deeply rooted in the markets where we
operate, offering us insights that help our clients
achieve their ambitions locally and across borders.
Technology
Our foundations in technology and data act as key
enablers in providing world-class client services.
Sustainability
Sustainability is integral
to the Group and our
client offering across all
our business segments.
Responsible business
practices
We strive to be a
responsible business by
operationalising our net
zerotargets, managing
environmental and social
risks, and acting
transparently.
Our client segments
Read more on our client segments
on pages 24 to 31
Corporate & Investment Banking
Supports large corporations, development
organisations, governments, and financial
institutions with risk management, advisory
and financing solutions.
Wealth & Retail Banking
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 banks –
Mox and Trust.
Standard Chartered | Annual Report 202510
Our value creation
We create long-term value for a broad
rangeof stakeholders.
Clients
We deliver banking solutions for our clients across
our network, both digitally and in person. We help
individuals grow and protect their wealth while
connecting corporates and financial institutions
toopportunities across our network.
Employees
We believe that employee experience drives
clientexperience. We want all our people to pursue
their ambitions, deliver with purpose and have a
rewarding career enabled by great people leaders.
Suppliers
We partner with diverse suppliers, locally and
globally, to provide efficient and sustainable goods
and services for our business.
Investors
We aim to deliver robust returns and long-term
sustainable value for our investors.
Regulators and governments
We play our part in supporting the effective
functioning of the financial system and the
broadereconomy by proactively engaging with
public authorities.
Society
We strive to operate as a sustainable and
responsible company, working with local partners
topromote social and economic development.
Read more in our Sustainability review
onpages 67 to 128
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
Global Markets
• Macro Trading
• Credit Trading
Global Banking
• Lending
&Financial
Solutions
• Capital Markets
& Advisory
Transaction
Services
• Payments
&Liquidity
• Trade & Working
Capital
• Securities & Prime
Services
Wealth Solutions
• Investments
• Bancassurance
• Wealth advice
• Portfolio
management
Retail Products
• Deposits
• Mortgages
• Credit cards
• Personal loans
Annual Report 2025 | Standard Chartered 11
Strategic report
Key performance indicators
We measure our progress against Group key performance indicators
(KPIs), as detailed below, as well as client KPIs, which can be found
onpages 24 to 31. Our Group KPIs include non-financial measures,
reflecting our commitment to build an engaged, diverse and inclusive
culture and support social and environmental outcomes.
Financial KPIs
Underlying return on tangible equity (RoTE)
1,2
%
+300bps
Aim
Deliver sustainable equity improvement in the Group’s
profitability as a percentage of the value of shareholders’
tangible equity.
Progress in 2025
Consistent execution of our strategic priorities has translated
into materially higher returns, with underlying RoTE of 14.7 per
cent in 2025, exceeding our 13 per cent target a year earlier
than planned.
1 The underlying profit attributable to ordinary shareholders expressed as a percentage of average ordinary shareholders’ tangible equity.
2 2021–2022 was restated to reflect market and business exits announced in Q1’23.
3 Combines simple share price appreciation with dividends paid to show the total return to the shareholder and is expressed as a percentage total return
toshareholders. The outcomes for 2024 and 2023 have been restated due to an adjustment to the 2023 TSR input data, reflecting a change in adjustment
factorbythe data provider.
Total shareholder return (TSR)
3
%
89.0%
Aim
Deliver a positive return on shareholders’ investment through
share price appreciation and dividends paid.
Progress in 2025
Our total shareholder return for the full year was 89.0 per cent,
reflecting the significantly improved share price during2025.
2025
2024
2023
2022
2021
89.0%
53.5%
5.1%
41.4%
(2.0)%
-12bps
Common Equity Tier ratio (CET1)
1
%
Aim
Maintain a strong capital base and CET1 ratio.
Progress in 2025
The Group remains well capitalised and highly liquid, with
aCET1 ratio of 14.1 per cent above our target range. The Board
has announced a full-year dividend of 61 cents per share
anda further share buyback programme of $1.5 billion
commencing imminently.
2025
2024
2023
2022
2021
14.1%
14.2%
14.1%
14.0%
14.1%
2025
2024
2023
2022
2021
14.7%
11.7%
10.1%
7.7%
6.5%
Standard Chartered | Annual Report 202512
4 Subject to local legal requirements.
5 Senior level refers to roles that are at least at the level of Executive Director (Band 4) and Managing Director (Band 3) as at 31 December of each reporting year.
6 We define mobilisation of sustainable finance as our share of any investment or financial service provided to clients that supports: (i) the preservation and/or
improvement of biodiversity, nature or the environment; (ii) the long-term avoidance/decrease of greenhouse gas emissions, including the alignment of a client’s
business andoperations with a 1.5°C trajectory or national net zero pathway (known as transition finance); (iii) a social purpose; or (iv) incentivising our clients to
meet their own sustainability objectives (known as sustainability-linked finance). It is a measure of total capital mobilised and considers the total value committed
on facilities provided to clients. Mobilisation is the provision of capital that, as per the legal contractual documents, meet the sustainable finance verification
criteria, or SLL eligibility, as of the date of execution of the trade.
7 Figures reflect cumulative sustainable finance mobilised since January 2021 up to September of each year.
8 The 2024 balance has been restated from $121 billion to $123 billion. See page 83 for details.
9 eNPS ranges from -100 to +100 and is based on a single question that measures whether colleagues would recommend working for the Bank. It is calculated
bydeducting the percentage of detractors from the percentage of promoters.
Non-financial KPIs
Women in senior roles
4,5
%
-0.3%
Aim
Increase representation
4
of women in senior leadership roles
5
globally to 35 per cent by the end of 2025.
Progress in 2025
The slight decrease reflects growth in the overall senior
leadership population, which impacted the proportional
representation of women.
2025
2024
2023
2022
2021
33.0%
33.1%
32.5%
32.1%
30.7%
Employee net promoter score (eNPS)
9
-2.9points
Aim
Improve the overall employee experience across the Group
bycreating a better work environment for our colleagues
thatshould translate into an improved client experience.
Progress in 2025
eNPS reflects wider engagement trends and the
organisational changes underway.
2025
2024
2023
2022
2021
17.56%
20.44%
25.86%
17.55%
12.94%
Mobilisation of sustainable finance
6,7,8
$bn
+$34bn
Aim
Cumulative progress towards our commitment to mobilise
$300 billion between 2021 and 2030.
Progress in 2025
We are tracking well against our commitment, having now
mobilised over half of our target amount.
2025
2024
2023
2022
2021
$157bn
The group announced this target in Q4 2021
$123bn
8
$87bn
$57bn
Alignment to remuneration
Reward for all Group employees, including executive
directors, continues to be aligned to the Group’s strategic
priorities, through our annual and long-term incentive
scorecards. Our approach to remuneration is consistent for
allemployees and is designed to create alignment with our
Fair Pay Charter, which applies globally. However, our pay
structures may vary according to location (to comply with
local requirements). Variable remuneration falls into two
categories: annual incentive and a long-term incentive
plan(LTIP), which are aligned to the KPIs indicated.
Annual incentive is based on measurable performance
criteria linked to the Group’s strategy and assessed over
a period of one year.
LTIP awards are granted to senior executives who
havethe ability to influence the long-term performance
of theGroup. Awards are performance dependent
based on measurable, long-term criteria.
Read more in our Directors’ remuneration report
on pages 180-206
Annual Report 2025 | Standard Chartered 13
Strategic report
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 China
was stable at 5.0 per cent in 2025, the same as in 2024,
although momentum eased over the course of the year.
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 4.0 per
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 the 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 1.1 per cent given trade pressures – from US tariffs,
increasing competition from China and the uneven
pictureacross euro-area economies.
• China is likely to grow by 4.6 per cent in 2026, driven
primarily by tech-led investment and productivity
gains,along with an increasing policy focus on boosting
domesticconsumption. 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 be supportive
for the US dollar.
Medium-term and long-term view
Focus on fiscal concerns
• Global central banks have delivered over 150 rate cuts
inthe past 12 months and are now nearing the end of
theirmonetary easing cycles. Fiscal policy is set to take
centre stage in 2026, with an increased focus on defence
and infrastructure spending in major economies,
includingtheEU.
• Global debt outstanding has reached new record levels.
Fiscal challenges across both developed and emerging
market economies have not been resolved; H1 2025 saw
$21 trillion added to the global debt tally, taking debt
outstanding to nearly $340 trillion.
• Under pressure to support growth, governments across
both developed and emerging markets are likely to rely
increasingly on fiscal stimulus. The extra borrowing
required is likely to put renewed upward pressure
onbondyields, barring a global recession.
• We expect yield curve steepening to emerge as the
dominant trend for global curves asmore corporate
borrowers are tapping the markets atthe same time
thatsovereigns are ramping up debt issuance to fund
fiscal stimulus.
• With the Fed likely to keep interest rates well above
pre-pandemic lows, and with the return of the ‘steeper-
for-longer’ theme for yield curves globally, economies with
external funding needs could face greater scrutiny than
those more reliant on domestic funding.
Broader global trends
• Long-term growth in the developed world is constrained
by ageing populations and high levels of debt.
• Rising nationalism, anti-globalisation and protectionism
are threats to long-term growth prospects in
emergingmarkets.
• However, there are potential offsets. Higher capex to meet
sustainability targets and moves towards digitalisation
could boost productivity growth, providing an antidote
toeconomic scarring concerns. Within emerging markets,
countries in Asia are best placed to take advantage
ofdigitalisation, including generative AI (GenAI).
• Relatively younger populations, and the adoption
ofdigital technology, will allow emerging markets
tobecome increasingly important to global growth.
• In order to meet net zero targets, energy-related spending
will have to increase significantly; headwinds include
insufficient funds across emerging markets, labour
shortages and supply chain constraints.
Macroeconomic factors affecting the global landscape
Standard Chartered | Annual Report 202514
Regional outlook
Greater China and North Asia
Actual and projected growth by market in 2025 and 2026
ASEAN and South Asia
Actual and projected growth by market in 2025 and 2026
2026
2025
4.6%
5.0%
2026
2025
3.2%
3.5%
2026
2025
2.0%
1.0%
China
Hong Kong
Korea
2026
2025
6.6%
7.5%
2026
2025
5.2%
5.0%
2026
2025
3.2%
4.8%
India
Indonesia
Singapore
The latest US–China trade agreement has eased tariff
uncertainty somewhat for 2026. Our baseline now assumes
tariffs to stay around current levels throughout 2026.
Weexpect China’s exports to stay resilient and policy to
continue to support domestic demand, especially consumption,
amid the prolonged housing-market correction. China’s total
factor productivity gains should continue to fuel growth,
aided by rapid AI adoption.
The 15
th
Five Year Plan (FYP) continues to push for
consumption-based and technology-driven growth,
underlining China’s structural transition.
We expect China’s macro policies to remain supportive
tocushion growth, but policymakers may avoid ultra-loose
measures to safeguard financial stability and balance
short-term economic relief with the long-term
structuralagenda.
We expect China’s fiscal policy to remain supportive of
theeconomy in the near-term to avoid a fiscal cliff, but the
budget deficit is likely to be moderately smaller compared
to2025. The People’s Bank of China is likely to maintain
accommodative monetary policy, but with measured easing
to manage financial stability concerns. We expect China’s
economy to grow 4.6 per cent in2026.
Hong Kong’s household spending may continue to recover in
2026. Business investment and hiring intentions are expected
to recover in 2026 thanks to relatively steady domestic
growth and reduced tariff uncertainty, providing relief to
thelabour market. Meanwhile, merchandise export growth
islikely to decelerate in 2026 on unfavourable base effects
and fading front-loading activity. We expect Hong Kong’s
role as a global offshore Renminbi (RMB) business hub to
strengthen. China’s 15
th
FYP proposes advancing RMB
internationalisation.
We expect South Korea’s GDP growth to accelerate in
2026.The composition of growth may turn more balanced
asconstruction investment turns positive, facility investment
stays stable and private consumption strengthens.
Whileweexpect exports to slow versus 2025 due to base
effects, they remain the key source of support for Korea’s
economy. We expect the Bank of Korea to keep rates on hold
for a prolonged period.
In India, a GDP growth forecast of 7.5 per cent for FY26
(ending March 2026) and 6.6 per cent next year amid
well-contained inflation puts it on a solid footing. Policy-push
viatax and interest rate cuts, continued focus on capital
expenditure and good weather islikely to lead to more even
distribution of growth. Downside surprises to inflation have
led to easier monetary policy, although rate cuts have likely
come to an end. Apolicy change to allow theIndian rupee
tobe the shock absorber amid weak capital inflows ensures
macroeconomic stability from a medium-term perspective.
Focus remains on the government’s measures toimprove
theease of doing business, which will be critical inattracting
larger capital inflows into India.
We expect growth in ASEAN to remain stable in 2026.
Exporting economies including Singapore, Malaysia,
Thailandand Vietnam, had performed better than expected
in 2025, despite tariff-related uncertainty on the back of
anextended period of tariff-reprieve and the front-loading
ofexports to the US.
However, normalisation of exports may be a growth drag
in2026. Meanwhile, AI-related activity may continue
tosupport growth, either via manufacturing or investment.
Moredomestically driven economies, including those
ofIndonesia andthe Philippines, may benefit from a more
efficient utilisation of their fiscal budgets in 2026. Issues,
including logistical challenges and increased fiscal scrutiny,
affected their growth in 2025 but we expect these economies
toperform better in 2026 once these issues are resolved.
Asian central banks may be close to the end of their easing
cycles. While inflation is likely to remain manageable, it could
pick up in 2026. We expect only further modest easing in
Indonesia, the Philippines and Thailand inH1 2026. Having
said that, foreign exchange stability remains a focal point
forsome of these central banks, which may affect their
interest ratedecisions. Meanwhile, the Monetary Authority
ofSingapore may be the first central bank in the region
totighten monetary policy in April, unwinding some of the
pre-emptive easing in H1 2025, amid stronger-than-expected
economic performance.
Annual Report 2025 | Standard Chartered 15
Strategic report
Market trends and outlook: Regional outlook
Americas
Actual and projected growth by market in 2025 and 2026
2026
2025
2.3%
2.0%
US
We expect a gradual acceleration of US growth in 2026,
underpinned by strong investment growth amid corporate tax
cuts and the race for AI build out. Despite softer employment
growth, which partly reflects supply-side factors such as lower
immigration, we expect high productivity growth to sustain the
resilience in the US economy. Business hiring is likely to pick up
later in 2026, aided by loose financial conditions and resilient
domestic demand.
Tariff-induced price pressure has started to gradually filter
through the economy. Concerns over the inflation trajectory
may limit the room for Fed easing in 2026.
Legal challenges against the tariffs still pose significant
uncertainty over the US fiscal trajectory and long-term interest
rates. Upcoming mid-term elections could put the administration
on the defensive, limiting the room for more radical changes.
In Latin America, growth is likely to pick up for most countries
inan environment of more supportive monetary policy and
sustained commodity tailwinds. A busy election calendar could
increase market volatility, although potential swings tothe
rightcould boost investment sentiment in anticipation of more
market-friendly legislative environments. Fiscal risks are likely
toremain elevated, with high borrowing costs and increasing
spending rigidity challenging fiscal consolidation.
Africa
Actual and projected growth by market in 2025 and 2026
2026
2025
4.0%
3.8%
2026
2025
2.0%
1.2%
2026
2025
5.3%
4.9%
Nigeria
South Africa
Kenya
We expect continued robust growth in Sub-Saharan Africa
(SSA), which is less exposed than other regions to escalating
trade tensions. Inlarger economies such as Nigeria and South
Africa, reform momentum is the main driver of the turnaround.
Favourable commodity prices and still-supportive portfolio
investor flows should also continue to provide support.
Most SSA economies have seen a marked improvement ingross
reserve accumulation, helped by gold valuation gains in the
case of the West African Economic and Monetary Union region,
Ghana, South Africa, Zambia and Uganda. Thistrend should
persist in 2026, boosting external liquidity.
Although the ability of Senegal and Kenya to secure IMF-funded
programmes will be closely watched, this is unlikely todetract
from broader investor appetite for SSA assets.
2026 should see continued portfolio inflows to the region, with
FX stability allowing for significant monetary easing inGhana,
Nigeria and Zambia. We forecast a pick-up in private-sector
credit across most SSA markets. This will besupported by
banking-sector consolidation in Nigeria, wherenew minimum
capital requirements are taking effect, and stepped-up efforts
in Kenya and Ghana to address delayedgovernment
payments, should reduce non-performingloans.
Middle East
Actual and projected growth by market in 2025 and 2026
2026
2025
5.0%
5.0%
UAE
Despite relatively low oil prices, we expect the Gulf Cooperation
Council (GCC) to remain a bright spot for global growth in
2026,with the region’s non-oil growth exceeding overall global
economic growth. With the exceptions of Saudi Arabia, Kuwait
and Bahrain, most of the region’s fiscal breakeven oil prices
remain low. In some cases, they have declined; for Oman, this
has prompted consecutive credit rating upgrades. Investment
in the non-oil sector will continue to drive economic activity in
2026, while lower interest rates, favourable demographics and
labour market dynamics should benefit consumption growth
and sectors such as housing in Saudi Arabia, the UAE and Qatar.
Cautious central bank policies should keep FX and inflation
risksin check in Türkiye, Egypt and Pakistan. On the trade front,
the GCC, and theUAE in particular, will continue to benefit from
rising South–South trade as global trade is re-routed in a more
fragmented world. In parallel, policymakers’ focus on AI should
add impetus to the US–GCC investment corridor.
Europe
Actual and projected growth by market in 2025 and 2026
2026
2025
1.2%
1.4%
2026
2025
1.1%
1.4%
UK
Euro area
European growth is likely to be weak in the first half of
theyearas trade pressures weigh on exporters. However,
European consumers remain in a relatively healthy position and
consumer spending should support overall economic growth.
German fiscal stimulus should also provide more ofatailwind
togrowth as the yearprogresses.
The UK growth outlook will be weighed down by a weaker
labour market and fiscal tightening. However, reforms to the
UK’s planning system and efforts to improve trade – particularly
with the EU – should yield growth benefits over time.
The European Central Bank has almost finished its interest-rate
cutting cycleas inflation is close to target, but the Bank of
England likely has further room to cut owing to labour market
weakness and slowing inflation.
Standard Chartered | Annual Report 202516
Summary of financial performance
All commentary that follows is on an underlying basis
andcomparisons are made to the equivalent period in 2024
on a constant currency basis, unless otherwise stated. 2024
included items totalling $295 million (2025: $1 million loss)
relating to gains on revaluation of FX positions in Egypt
andahyperinflationary accounting adjustment in Ghana
(thenotable items).
Our operating income grew by 6 per cent to $20.9 billion
or8per cent excluding the notable items, driven by record
performance in Wealth Solutions and Global Markets and
strong double-digit growth in Global Banking. Operating
expenses grew by 4 per cent, disciplined cost management
enabled us to generate positive income-to-cost jaws of
2percent, or 4 per cent excluding the impact of notable
items. Credit impairment charges were $676 million, equivalent
toan annualised loan-loss rate of 19 basis points,with asset
quality remaining resilient in the face ofavolatile global
environment. Underlying profit before tax of$7.9 billion was
up 18 per cent, and underlying earnings per share of 229.7
cents, increased 37 per cent benefitting from a reduction
inshare count as well as the increase in profitability.
The Group remains well capitalised and highly liquid with
astrong and diverse deposit base. The liquidity coverage
ratio of 155 per cent reflects disciplined asset and liability
management. The Common Equity Tier 1 (CET1) ratio of
14.1per cent is above the Group’s target range of 13percent
to 14per cent, enabling the Board to announce afurther
$1.5 billion share buyback programme to commenceimminently.
Net interest income (NII) of $11.2 billion was up 1 per cent,
asthe benefit from higher volumes and improved balance
sheet mix was partly offset by the impact of lower interest
rates leading to margin compression, albeit pass-through
rates remain robustly managed.
Non NII of $9.7 billion increased 13 per cent or 17 per cent
excluding the notable items. This was driven by record
performance in Wealth Solutions from continued momentum
in new clients onboarding and growth in net new money,
strong performance in Global Banking from higher origination
and distribution volumes and robust growth in Global Markets
from client flow income. Ventures realised a $238 million gain
from the Solv India transaction.
Group Chief Financial Officer’s review
We delivered strong performance in 2025
reflecting sustained successful execution
ofour cross-border and affluent banking
strategy which helped our clients navigate
an uncertain external environment. The
continued strategic focus on areas of our
distinctive competitive advantage helped
us deliver an underlying return on tangible
equity of 14.7 per cent in 2025, surpassing
our 13 per cent underlying return on tangible
equity target a year earlier than planned.
Pete Burrill
Interim Group Chief Financial Officer
Annual Report 2025 | Standard Chartered 17
Strategic report
GCFO’s review
Operating expenses of $12.3 billion increased 4 per cent.
Thiswas largely driven by continued investments into business
growth initiatives, including strategic hiring of Relationship
Managers in Wealth & Retail Banking (WRB) and coverage
bankers in Corporate & Investment Banking (CIB) and higher
performance related compensation reflecting a combination
of strong profitability, share price increases and a change
inregulation which enabled the acceleration of deferred
bonuses. This was partly offset by efficiency saves, primarily
linked to the Fit for Growth programme. The cost-to-income
ratio improved by 1 percentage point to 59 per cent.
Credit impairment charge of $676 million represents a loan
loss rate of 19 basis points, in line with the prior year. WRB
impairment of $595 million was down $28 million, reflecting
portfolio optimisation actions. The $59 million charge in
Ventures was down $14 million year-on-year as delinquency
rates improved in Mox. CIB impairment was a net charge
of$4 million, up $124 million from the non-repeat of prior
yearreleases.
Other impairment of $42 million decreased by $546 million
year-on-year primarily due to lower software asset write-offs.
Profit from associates and joint ventures was up 42 per cent
to $71 million mainly reflecting higher profits at China
BohaiBank.
Restructuring, FFG, Debit Valuation Adjustment (DVA) and
other items totalled $937 million (2024: $797 million).
Restructuring of $320 million reflects the impact of actions
tosimplify technology platforms and business exits (2024:
$285 million). Charges to structurally improve productivity
through the Fit for Growth programme totalled $531 million
(2024: $156 million). Movements in DVA were a negative
$31 million (2024: negative $24 million) while Other Items
were a $55 million charge (2024: $332 million).
Taxation was $1.9 billion on reported basis, with an underlying
effective tax rate of 25.3 per cent down 5.3 per cent year-on-
year reflecting a favourable change in the geographic mix
ofprofits, reduced impact of deferred tax not recognised for
UK losses and beneficial adjustments for prior period items.
Underlying RoTE increased by 300 basis points to 14.7 per
cent reflecting increased profits, a lower underlying effective
tax rate, and gains on SC Ventures equity investments
recognised through fair value movements in other
comprehensive income. Reported RoTE increased 220 basis
points to 11.9 per cent from an 18 per cent increase in profit
before tax and 6 per cent drop-in tax rate.
Underlying basic earnings per share (EPS) increased
61.6cents or 37 per cent to 229.7 cents and reported EPS
increased 54.1 cents or 38 per cent to 195.4 cents.
A final ordinary dividend per share of 49 cents has been
proposed taking the full-year dividend to 61 cents per share,
a65 per cent increase year-on-year. The Group completed
a$1.5 billion share buyback programme during the first half
ofthe year and the $1.3 billion share buyback programme
announced on 31 July 2025 was completed on 26 January 2026.
The increased dividend, along with a new share buyback
programme of $1.5 billion to be commenced imminently,
takes the total shareholder distributions announced since
thefull-year 2023 results to $9.1 billion.
Guidance
In 2026, the Group’s reporting will move from an underlying
toa reported basis, and our 2026 guidance below is set
onthis basis:
• Reported operating income growth year-on-year
tobearound the bottom end of 5-7 per cent range
atconstant currency.
– Within which, net interest income
1
expected tobe
broadly flat year-on-year at constant currency.
• Reported cost to be broadly flat in constant currency
including the final year of Fit for Growth charges.
• Statutory RoTE to be greater than 12 per cent.
Pete Burrill
Interim Group Chief Financial Officer
24 February 2026
1 Net interest income is adjusted for trading book funding cost, treasury currency management activities, and financial guarantee fees oninterestearningassets.
Standard Chartered | Annual Report 202518
Summary of financial performance
2025
$million
2024
$million
Change
%
Constant
currency change
1
%
Underlying net interest income
2
11,185 11,096 1 1
Underlying non NII
2
9,709 8,600 13 13
Underlying operating income 20,894 19,696 6 6
Underlying operating expenses (12,347) (11,790) (5) (4)
Underlying operating profit before impairment and taxation 8,547 7,906 8 9
Credit impairment (676) (557) (21) (21)
Other impairment (42) (588) 93 93
Profit from associates and joint ventures 71 50 42 42
Underlying profit before taxation 7,900 6,811 16 18
Restructuring
5
(320) (285) (12) (13)
FFG
5
(531) (156) nm nm
DVA (31) (24) (29) (29)
Other items (55) (332) 83 83
Reported profit before taxation 6,963 6,014 16 18
Taxation (1,866) (1,972) 5 6
Profit for the year 5,097 4,042 26 29
Net interest margin (%)
3,4
2.03 2.06 (3)
Underlying return on tangible equity (%)
4
14.7 11.7 300
Underlying basic earnings per share (cents) 229.7 168.1 37
1 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods.
2 Underlying Net Interest Income (NII) 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 underlying non NII.
3 Net interest margin has been restated due to the revision of underlying net interest income as outlined in footnote 2.
4 Change is the basis points (bps) difference between the two periods rather than the percentage change.
5 FFG (Fit for Growth) charge previously reported within Restructuring has been re-presented as a separate item.
Reported financial performance summary
2025
$million
2024
$million
Change
%
Constant
currency change
1
%
Net interest income 5,955 6,366 (6) (6)
Non NII 14,987 13,177 14 14
Reported operating income 20,942 19,543 7 7
Reported operating expenses (13,304) (12,502) (6) (6)
Reported operating profit before impairment and taxation 7,638 7,041 8 10
Credit impairment (672) (547) (23) (22)
Other impairment (65) (588) 89 89
Profit from associates and joint ventures 62 108 (43) (43)
Reported profit before taxation 6,963 6,014 16 18
Taxation (1,866) (1,972) 5 6
Profit for the year 5,097 4,042 26 29
Reported return on tangible equity (%)
2
11.9 9.7 220
Reported basic earnings per share (cents) 195.4 141.3 38
1 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods.
2 Change is the basis points (bps) difference between the two periods rather than the percentage change.
Annual Report 2025 | Standard Chartered 19
Strategic report
As a super-connector, we bring cross-border capabilities to
ourclients, linking Asia, the Middle East and Africa to Europe
and the Americas.
With our expertise in sustainable finance, we help our clients
make progress on their climate objectives while unlocking
sustainable investment opportunities across our footprint.
We also help clients transact and tokenise digital products
andprovide custody services through Group and SC
Venturebusinesses.
The super-connector bank helping clients
do business across borders.
Corporate & Investment Banking
Total network income
from 2019 to 2025 CAGR
1
+10%
Now is your time to lead across borders
$7.6bn
2025
$7.3bn
2024
$6.8bn
2023
$5.1bn
2022
$4.0bn
2021
$3.9bn
2020
$4.3bn
2019
1 Compound Annual Growth Rate.
Standard Chartered | Annual Report 202520
Learn about Corporate &
Investment Banking online
Visit sc.com/crossborder
Annual Report 2025 | Standard Chartered 21
Strategic report
2025
2024
2023
54%
51%
49%
2025
2024
2023
61.5%
61%
61%
Corporate & Investment Banking
Client segment reviews
CIB supports local and large corporations, governments, banks and
investors with their transaction services, banking and financial markets’
needs. Weprovide differentiated cross-border capabilities to over 17,000
clients in some of the world’s fastest-growing economies andmost active
trade corridors.
Segment overview
Our strong and deep local presence enables us to
co-createbespoke financing solutions and connect our
clients multilaterally to investors, suppliers, buyers and
sellers.Ourproducts and services enable our clients to move
capital,manage risk and invest to create wealth. Our clients
represent a large and important part of the economies we
serve. CIBisat the heart of the Group’s shared purpose to
drive commerce and prosperity through our unique diversity.
We are also committed to promoting sustainable finance
inour markets and channelling capital to where the impact
will be greatest. We are delivering on our ambition to
supportsustainable economic growth, increasing support
and funding for financial offerings that have a positive
impact on our communities and environment.
Performance highlights
Underlying basis
$5,875m
9%
Reported basis
$5,350m
4%
Profit before taxation
$175.9bn
$6.5bn
Risk-weighted assets
Underlying basis
15.8%
90bps
Reported basis
14.1%
Flat
Return on tangible equity
Contributions of Financial Institutions segment
54%
Aim: Drive growth in high-returning Financial
Institutionssegment.
Analysis: Share of Financial Institutions income increased
to54 per cent in2025, reflecting sustained focus on the
segment to drive income growth and returns.
Network as % of total income
61.5%
Aim: Drive cross-border income by focusing on strategic
corridors with growth potential.
Analysis: Network income increased to 61.5 per cent in 2025
from 61 per cent in 2024, reflecting continued execution
against our cross-border strategy for large global corporate
and Financial Institutionclients.
Standard Chartered | Annual Report 202522
Performance highlights
• Underlying profit before tax of $5,875 million increased by
9per cent at constant currency driven by higher income,
and lower impairment charge partially offset by higher
operating expenses.
• Underlying operating income of $12,394 million increased
by 4 per cent at constant currency primarily driven by
strongperformance in Global Markets and Global Banking.
GlobalMarkets increased 12 per cent driven by continued
strong growth inflow income (up 15 per cent) and growth
in episodic income (3 per cent). Global Banking increased
15 per cent due to higher origination and distribution
volumes from strong pipeline execution, coupled with
increased Capital Markets activities. Transaction Services
income decreased 7 per cent as growth in Securities &
Prime Services was offset by lower Payments & Liquidity
and Trade & WorkingCapital incomes.
• Underlying operating expenses were up by 2 per cent
atconstant currency largely due to strategic business
investments and higher performance-related pay.
• Credit impairment was a net charge of $4 million
asthegross impairments were offset by recoveries.
Otherimpairment decreased by $284 million year-on year
duetonon-repeat of software asset write-offs.
• RWAs of $175.9 billion were up $6.5 billion, mainly driven by
higher operational and market RWA. Credit RWA increase
from asset growth was offset by RWA optimisation actions.
Business focus
• Deliver sustainable growth for clients by leveraging
ourunique network to facilitate trade, capital and
investment flows across our footprint markets.
• Generate high-quality returns by improving income mix,
growing capital-lite income, expanding our wallet share,
and driving balance sheet velocity, while maintaining
disciplined risk management.
• Be a digital-first and data-driven bank that delivers
enhanced client experiences.
• Accelerate our sustainable finance offering to our clients
through product innovation and enabling transition
toalow-carbon future.
Progress
• Our underlying income performance was driven by our
diversified product suite, expanded client solutions and
optimised resource allocation by focusing on clients
whosecross-border needs played directly to our strengths.
Our cross-border income was 61.5 per cent of total CIB
income with growth across strategic corridors.
• We increased the share of income from our financial
institution income as a percentage of total CIB
income,from 51 per cent in 2024 to 54 per cent in 2025.
Client Digital Transaction Initiation stood at 72.1 per cent
(2024: 68.3 percent) largely in Cash, Trade and FX.
Clientexperience remained at the centre of our digital
transformation, with our Customer Satisfaction Score
improving to 76.5 per cent (2024: 71.6 per cent).
• We have delivered $1.07 billion sustainable finance
income, achieving our target of $1 billion income by 2025,
and have mobilised $157 billion against our commitment
to mobilise $300 billion of sustainable finance by 2030.
Annual Report 2025 | Standard Chartered 23
Strategic report
With our wealth insights, tailored advice and global network,
weconnect our clients to investment opportunities across Asia,
Africaand the Middle East, meeting their wealth needs domestically
and internationally.
Our products and services, supported by views from our Chief
Investment Office, help our clients grow, protect and pass on their
wealth to future generations.
As we look to accelerate our affluent business, we are backed
bya$1.5 billion investment commitment and are targeting
$200 billion inaffluent net new money from 2025 to 2029.
Helping clients grow and protect
theirwealthwhile ensuring family values
arepreserved across generations.
Wealth & Retail Banking
2017
199
2018
201
2019
223
2020
240
2021
255
2022
258
2023
272
2024
367
$447bn
2025
Now is your time to grow with purpose
1 Assets under management.
2 Compound Annual Growth Rate.
Affluent AUM
1
($bn)
from 2017 to 2025 CAGR
2
+11%
Standard Chartered | Annual Report 202524
Affluent metrics
Net new money in 2025
$51.5bn
New to bank clients
in2025
275k
International clients
386k
International client
AUM
1
$243bn
Learn about Wealth &
Retail Banking online
Visit sc.com/wealth
Annual Report 2025 | Standard Chartered 25
Strategic report
Wealth & Retail Banking
Client segment reviews
WRB continues to build on strong momentum, reinforcing our position as a leading
international wealth manager across Asia, Africa and the Middle East. Our trusted brand,
deep local presence andexpansive global network are our core differentiators. Clients
choose us for our expertise, personalised solutions and stability, enabling us to capture
strong structural tailwinds driving cross-border wealth flows.
Segment overview
We serve individuals and small and medium businesses
bydirectly addressing their international and wealth needs.
We focus on the affluent spectrum, encompassing Private,
Priority Private, Priority and Premium Banking clients, offering
them a comprehensive product suite spanning: deposits,
payments, financing, advisory, investments and
bancassurance. In particular, our open architecture allows
usto collaborate with partners to bring best-in-class and
first-to-market wealth solutions to our clients.
In Personal Banking, we focus on engaging emerging
affluentclients early in their wealth journey. By partnering
with them as their first or primary wealth advisor, we grow
with them asthey progress along the affluent continuum,
cultivating astrong pipeline of our future affluent clients.
For our small and medium business clients, we provide an
integrated offering through the Small and Medium Enterprise
(SME) segment that covers both their business operations
and personal wealth needs. Many of these fast-growing
companies particularly value our international network for
their cross-border needs.
WRB is closely integrated with the Group’s other client
segments. We support entrepreneurs from our Private Bank
with one-stop solutions for their corporate banking needs,
offer employee banking services to CIB clients and serve
asasource of high-quality liquidity for the Group.
Performance highlights
Underlying basis
$2,883m
14%
Reported basis
$2,427m
10%
Profit before taxation
$56.8bn
$0.5bn
Risk-weighted assets
Underlying basis
25.5%
480bps
Reported basis
20.9%
310bps
Return on tangible equity
Affluent net new money (NNM)
$51.5bn
Aim: Achieve NNM from new and existing affluent clients,
viainnovation and advisory-led and digital-first
wealthpropositions.
Analysis: Affluent NNM continued to grow in 2025, nearly
doubling from 2023 levels, and registered 14 per cent
growthonAUM,supported by strong NTB client acquisition
momentum and deeper engagement with internationalclients.
2025
2024
2023
$51.5bn
$43.9bn
$27.1bn
International affluent clients in wealth hubs
386k
Aim: Solidify our position as a leading international wealth
manager by leveraging our client continuum, global network
and expertise in wealth solutions.
Analysis: International affluent clients increased 18 per cent
year-on-year in 2025, achieving three-year growth target
of375k setin2023, one year ahead of schedule.
2025
2024
2023
386k
325k
274k
Standard Chartered | Annual Report 202526
• Continued to invest in the hiring of affluent relationship
managers and wealth specialists, uplift digital capabilities
and build new client centres; opened seven new client
centres in 2025, taking the total to 18.
• Continued to digitise and enhance the wealth client
journeys with new self-service capabilities, streamline
processes, and build more comprehensive portfolio
advisory capabilities for both clients and frontline teams.
• Launched three funds managed by SC Variable Capital
Company and expanded our differentiated wealth
solutions, such as our exclusive Signature Select and
Signature CIO funds, with the combined AUM from
Standard Chartered exclusive funds crossing $8 billion.
• Recognised for excellence in private banking, digital
wealth and other capabilities, with 40 industry awards
received in 2025.
Performance highlights
• Underlying profit before tax of $2,883 million, increased
by14 per cent at constant currency driven by higher
income, lower credit and other impairment charges,
partially offset by higher operating expenses.
• Underlying operating income of $8,464 million grew
6percent at constant currency primarily driven by a 24
percent increase inWealth Solutions, with broad-based
growth across markets and products. This growth was
supported by sustained momentum in affluent NTB clients
and NNM inflows. Deposits & Mortgages decreased 2 per
cent atconstant currency,reflecting rate-driven pressures
from lower benchmark interest rates, partially offset by
volume growth and proactive pricing actions. CCPL &
Other Unsecured Lending remained flat, with strategic
portfoliooptimisation in selective markets offsetting
benefits from improved margins.
• Underlying operating expenses increased by 5 per cent
inconstant currency with continued investment in affluent
business growth initiatives, including the strategic hiring
ofaffluent relationship managers and uplifting digital
capabilities. Cost growth was managed through efficiency
initiatives on branches, as well as off-strategy products
and client segments. Productivity measures also increased
efficiency of relationship managers and improved
clientservicing.
• The credit impairment charge decreased by $28 million
to$595 million, primarily driven by optimisation actions
intheunsecured lending portfolio. Other impairment
charges decreased by $108 million due to the non-repeat
of software asset write-offs.
• RWAs reduced by $0.5 billion to $56.8 billion, mainly due
tooptimisation of our unsecured lending portfolio and the
transfer of an unsecured lending portfolio to Mox Bank in
Ventures, allowing growth in the affluent segment through
the Wealth Lending and Secured Lending portfolios.
Totalliabilities increased by 14 per cent at constant
currency, underpinned by NTB acquisition and growth
inaffluent NNM.
Business focus
• Lead in international wealth management – We will
capitalise on our position as a leading international wealth
manager, by capturing wealth flows across key global
corridors, particularly for Global Chinese and Global Indian
clients, in Asia, Africa and the Middle East. We will
leverage our unique advantages: our client continuum,
global network and deep expertise in wealth solutions.
• Deliver hyper-personalised, advisory-led wealth solutions
– We will provide a differentiated client experience
through hyper-personalised advisory-led propositions. This
will be powered by a best-in-class open architecture
solutions platform, enhanced by data and AI.
• Accelerate investment in our growth engines – To drive
growth and market share, we will accelerate investment in
our core enablers: our affluent frontline teams, our wealth
and digital platforms, our client centres, and our brand
and marketing initiatives.
• Serve entrepreneurial and SME owner clients – We will
comprehensively serve SME business owners and
international entrepreneurs whose personal and business
finances are deeply interconnected. Our proposition for
them will be anchored in integrated solutions for cash,
trade, cross-border connectivity and wealth management.
• Continue reshaping our mass retail business – Building on
our progress, we will continue to reshape our mass retail
business. Our focus remains on building a strong pipeline
of future affluent and international banking clients,
whileactively optimising low returning, single-product
relationships and geographies.
Progress
• Ranked #3 wealth manager in Asia based on Asian
PrivateBanker rankings for 2024.
1
Affluent AUM stood
at$447 billion as of 31 December 2025.
• Strong momentum in client growth with 275,000 NTB
affluent clients and affluent NNM
2
reaching $52 billion,
representing 14 per cent of AUM.
• Up-tiered 307,000 individual clients through our wealth
continuum across and within the personal and affluent
segments, by tailoring our propositions and service models
to the needs of our clients.
1 Source: Asian Private Banker. This ranking combines Asia Private Banker Wealth Continuum & Private Banking rankings for 2024; using Wealth Continuum AUM
balances for those banks which provide both.
2 Net new money is shown at YTD constant currency FX rates.
Annual Report 2025 | Standard Chartered 27
Strategic report
Ventures
Now is your time to build what comes next
Building and investing in breakthrough ventures
thatinformthe future of finance.
23%
27%
31%
19%
3
high-conviction
themesand our
enablers
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SC Ventures’ role is focused on exploring
alternative business models, investing in
frontiertechnology and promoting innovation.
We bring expertise and perspectives from
theworld’s most dynamic markets, to turn
concepts into new business models at scale.
Since launching in 2018, we have invested in
more than 30 ventures including Trust Bank,
Singapore’s first digitally native bank, created
in partnership with FairPrice Group, and
small business B2B marketplace Solv – which
operates in Kenya.
We currently invest in 26 ventures
across three high-conviction themes:
Digital Banking & Lifestyle, Trade &
Supply Chains and Digital Assets,
enabled by AI, Web3/Blockchain, ESG
and Quantum (Next Horizon ventures)
Standard Chartered | Annual Report 202528
26
Ventures
Digital Assets
• Libeara
• Project 37C
• SWIAT
• Zodia Custody
• Zodia Markets
Digital Banking
&Lifestyle
• Appro
• audax
• Furaha
• myZoi
• Vault22
• Zai
Next Horizon
• Akashaverse
• FourTwoThree
• letsbloom
• Lexarius
• RegWise
• Qatalyst
• Qubitra
Trade & Supply
Chains
• Hal
• Jumbotail
• Labamu
• NusaVest
• Olea
• Solv Ghana
• Solv Kenya
• TASConnect
Learn about SC Ventures
online
Visit sc.com/ventures
Annual Report 2025 | Standard Chartered 29
Strategic report
Formed in 2022, the Ventures client segment is a consolidation of
SCVenturesand its related entities as well as the Group’s twomajority-owned
digital banks – Mox in Hong Kong and TrustinSingapore.
Segment overview
SC Ventures builds and invests in breakthrough ventures, in
and beyond banking. It provides a platform for organisations
to drive innovation and transformation. The SC Ventures
platform currently represents a diverse portfolio of almost
30ventures and more than 30 investments.
Mox, a cloud-native, mobile-only digital bank, was launched
in Hong Kong as a joint venture with HKT, PCCW and
Trip.com in September 2020. It penetrated over 10 per cent
ofHong Kong’s total bankable population, and Mox Credit
Card is ranked as the seventh-largest credit card portfolio
among all Hong Kong retail banks.
1
Trust Bank is a digital retail bank, launched in Singapore
in2022 in partnership with FairPrice Group. It has over one
million customers, making it the fourth largest retail bank
inSingapore.
Ventures
Client segment reviews
Performance highlights
Underlying basis
$(167)m
57%
Reported basis
$(171)m
56%
Loss before taxation
$4.9bn
$2.5bn
Risk-weighted assets (RWA)
$42.5m
29%
External funds raised
Customers
2
2.9m
2025
2024
2023
2.9m
2.3m
1.5m
1 According to TransUnion’s Market Insights and Intelligence Dashboard (MIID) for the period from January to December 2025.
2 Restated to capture subsidiaries only.
Standard Chartered | Annual Report 202530
Business focus
• SC Ventures’ focus is on building and scaling new business
models across three high-conviction themes of Digital
Banking & Lifestyle, Trade & Supply Chains and Digital
Assets, enabled by AI, Web3/Blockchain, ESG and
Quantum. We do this by connecting ecosystems, partners
and clients to create value and new sources of revenues,
providing optionality for the Bank. In addition, SC Ventures
identifies partners, and makes minority investments in
companies that provide technology capabilities, which
can then be integrated into the Bank and Ventures.
• Mox aims to become a leading digital bank, focusing
oncards, digital lending, deposits, wealth management
and insurance. Mox plans to enhance its offering with
abroader range of digital financial solutions to cater
tocustomer needs in a competitive market.
• Trust Bank aims to establish itself as one of the main
retailbanks in Singapore, and gain wallet share by
capitalising on its market-leading customer experience.
Key near-term priorities are to continue to innovate in core
banking products including savings and lending, deepen
engagement with existing customers and to broaden
itswealth management proposition.
Progress
• In 2025, SC Ventures maintained positive momentum,
further enhancing its business performance. It launched
four new ventures, raised funds amid a challenging
environment, and expanded its geographical reach.
Across SC Ventures subsidiaries, the customer base grew
by 57 per cent year-on-year to reach nearly 1.1 million.
SC Ventures completed the sale of Solv India to Jumbotail,
one of India’s leading B2B marketplaces. The combined
business is now one of the largest B2B e-commerce platforms
in India. As a result of the transaction, SC Ventures reported
again of $0.2 billion in its second quarter 2025 results.
SC Venture’s portfolio of compliant and bank-grade
digitalasset platforms continues to prove our commitment
tobuilding infrastructure that will enable institutional
adoption.During the year, Zodia Markets successfully raised
$18.3 million
1
in a Series A funding round, in addition to
significantly expanding its client base.
• In 2025, Mox continued its strong growth trajectory,
achieving a robust 15 per cent year-on-year increase
incustomer base and reaching approximately
750,000customers.
Mox continued to achieve strong performance, supported
byan engaged customer base, delivering 21 per cent
year-on-year growth in deposits. Unsecured loan balances
grew 115 per cent year-on-year, benefitting from client
acquisition and deepening, and including the impact of
anacquisition ofunsecured loans from Standard Chartered
Hong Kong. Mox Card has been used in nearly 157 million
transactions to date and has rewarded a total of 1.8 billion
Asia Miles to date. By the firsthalf of 2025, Mox’s market
share had reached 24 per cent (was ranked number 1) and
25per cent (was ranked number 2) inlending and deposits
respectively, among all Hong Kong digital banks.
Mox was recognised for its excellence by various global
named agencies, such as the Top 100 Digital Banks and was
rated number one in Hong Kong in Neobank Ranking 2025
byTheBanker, Best Digital Bank in Hong Kong by the Asian
Banker and Digital Bank of the Year – Hong Kong by Asian
Banking and Finance.
Mox has established a strong connection with Hong Kong
customers since its launch – the bank’s app is currently the
highest-rated digital banking app in Hong Kong, achieving
ascore of 4.8 out of 5 in the Apple App Store.
In 2025, Mox launched Mox Insure, offering personal accident
and travel insurance products. Mox also expanded offerings
such as personalised portfolio investment under its digital
wealth platform, Mox Invest, creating a strong foundation
forrevenue diversification.
• Trust Bank continued its strong growth in 2025, with
customer numbers up 15 per cent year-on-year reaching
more than one million customers, taking its share of the
adult population in Singapore beyond 20 per cent.
The bank delivered robust financial performance with
creditcard spend growing 39 per cent and unsecured
loanbalances rising 67 per cent year-on-year, driven by
newcapabilities introduced over the past year. The bank
continued to strengthen the quality of its funding base, with
about one-third of total balances coming from customers
who credit their salary to their Trust savings account.
During 2025, Trust Bank was named Singapore’s Best Digital
Bank for Consumers by Euromoney and the top mobile
banking app for a digital bank globally by The Digital Banker.
The bank made strong progress on AI adoption, driving
productivity gains and enhanced customer experience.
In Q1 2025, Trust Bank launched its digital wealth platform,
TrustInvest, initially with a fund proposition. This was followed
by a US stocks and ETFs trading platform in Q4 2025 and
creates a strong foundation for revenue diversification.
Performance highlights
• Underlying loss before tax decreased by $218 million
to$167 million, primarily driven by higher income.
Incomerose by $232 million to $415 million, driven primarily
bya$238 million gain from the Solv India transaction.
• Operating expenses were flat as business growth was
offset by Solv India deconsolidation and efficiencies
related tostaff, marketing and vendor costs.
• Credit impairment decreased by $14 million to $59 million,
reflecting a reduction in delinquencies in Mox, driven
bycontinuous improvement in both contractual and
bankruptcy write-offs, partially offset by an increase
inTrust in line with the growth in the asset book.
• Ventures equity investments recognised $269 million gains,
net of tax, in the year, through fair value movements in
other comprehensive income.
1 Includes SC Ventures investment in Series A of $1.4 million.
Annual Report 2025 | Standard Chartered 31
Strategic report
Our people and culture
Our people help deliver our strategy, unlock value for our clients
andmake us theBank we are today. By building a high performance,
supportive workplace, our people can continue to thrive.
We have a unique culture, developed over 170 years of
pursuing a purpose – to drive commerce and prosperity
through our unique diversity – that hasn’t changed since our
founding. Our ambition is to deliver innovative solutions that
create long-term value for our clients and communities.
Our valued behaviours
Our valued behaviours are how we manifest our culture
consistently – they’re our guiding principles for how we work
together and the way we do business every single day.
It’s easy to talk about culture but its more than rhetoric.
It’sabout embedding these behaviours into daily actions
anddecisions. In addition to reinforcing our valued behaviours
consistently through communications and sharing stories, we:
• Model them visibly: Setting out behavioural expectations
of all our people leaders in our Leadership Agreement
soall leaders must model the behaviours (no exceptions).
• Measure them consistently: Embedding behaviours into
core people processes like recruitment and onboarding
and performance management.
• Reward them genuinely: Publicly recognising people who
live our valued behaviours.
• Enforce them fairly: Acting decisively when behaviours
arenot met.
Creating a unique employment
proposition that welcomes talent
whilebuilding future-ready
capabilities is essential for driving
sustainable highperformance.
Will Brown, Group Head of HR
Never settle Better together Do the right thing
Our valued behaviours in action
Continuously improve and innovate,
so we lead rather than react
tochange.
Simplify to make things easier,
faster and better across
everythingwe do.
Learn from our successes and
failures, because the pace
ofchange demands learn-it-alls
notknow-it-alls.
See more in others, taking time
tolisten to diverse viewpoints
andovercome bias.
Ask how can I help? when people
need a hand. We only succeed
collectively.
Build for the long term, because
performance comes from harnessing
our diverse talents.
Live with integrity, even when
noone is watching.
Think client, always considering the
outcomes in whatever we are doing.
Be brave, be the change, because
the standards we walk past are
thestandards we accept.
Read more on embedding and
monitoring culture on page 148
Standard Chartered | Annual Report 202532
The colleague experience
Our Employee Value Proposition (EVP) helps us build
amotivated workforce that’s able to deliver our strategy;
weaspire to provide clarity on the contribution we expect
from our colleagues, and what they can expect in return.
This year we launched our global EVP film
series Stand for More, recognised by three
leading employer brand-focused bodies.
Read more online at
sc.com/standformore
Each pillar of our EVP enables us to deliver a market-leading
position aligned with our corporate strategy, our brand
promise, here for good, and our purpose.
Investing in colleague growth and wellbeing
We offer the opportunity and investment needed for
ajob to grow into a rewarding career, as well as access
to innovative learning solutions, exposure to different
markets and cultures, flexible working practices, fair,
fixedand performance-related pay and the opportunity
to lead with purpose. Colleagues bring expertise, skills,
ambition and a desire to grow.
Prosperity through diversity
We offer the opportunity to be part of a diverse family
ofcolleagues, where voices are respected and heard,
inan environment where we challenge the status quo.
Colleagues bring curiosity, ideas and an open mind.
Here for good
We offer work that you can be proud of, a safe
environment built on belonging and trust, connection
tothe world’s most dynamic markets and access to
volunteering days for our global impact programmes.
Colleagues bring integrity, values and a desire to create
a future of which we can all be proud.
Listening to employees
Regular feedback through employee surveys helps us
identifyand close gaps between colleague expectations
andexperience. Colleague sentiment is captured through
ourannual My Voice survey, as well as weekly surveys and
atkey moments – when employees join us, leave, or return
towork after parental leave. In addition, the Board and Group
Management Team engage with and listen to the views
ofcolleagues through interactive sessions. In 2025, our annual
My Voice survey was conducted during May and June. 85per
cent of our employees responded (2024: 87 per cent). Overall,
our employee experience remains positive and stablewith 83
per cent saying the Bank meets or exceeds their expectations
as an employer (2024: 83 per cent). Colleagueshave boughtin
to our refreshed strategy andtherationale fortransformation
isviewed positively. Thereare high levels of understanding
ofour purpose (87percent) and how the strategy supports
it(86 per cent). Most (82 per cent) are clearabout the desired
outcomes ofour transformation, areinformed about its progress
(73percent), and are enthusiastic about it (74 per cent).
Insights from interviews and My Voice highlight that our
people have pride, excitement and deep care for our clients,
our business and the people within it.
{8}{5}
%
{8}{3}
%
{8}{7}
%
{8}{2}
%
of our employees
responded (2024: 87%)
say the Bank meets
orexceeds their
expectations as an
employer (2024: 83%)
understand ourpurpose
are clear about the
desiredoutcomes of our
transformation
My Voice 2025 results
Our purpose should guide everything we do.
Having a strong culture embedded in our
underlying purpose is critical in making
theBank great.
Bill Winters, Group Chief Executive
Find out what major accolades we’ve won this year
sc.com/awards
Annual Report 2025 | Standard Chartered 33
Strategic report
Flexible working
Some 82 per cent of colleagues across 44 markets can
workflexibly – with nearly 50,000 employees currently
working flexibly across the Bank. In 2025, we reaffirmed our
commitment to flexible working, including the rollout in India.
Among the 5,400 additional eligible colleagues, 64 per cent
are now working flexibly and80 percent of all colleagues in
India believe that flexible work has apositive impact on their
ability to get work done. Globally, people leaders continue
tomaintain arrangements thatbalance client and business
needs with individual preferences. We recognise the need
forcollaboration andapprenticeship, and we will continue
toencourage flexibility with guardrails in place on work
location, pattern and role eligibility to ensure flexibility
withina framework.
Developing skills for future strategic value
andenabling careers
At the Bank, we have made strong progress in leveraging
skills to enable us to deploy critical capabilities faster,
strengthen our workforce resilience and accelerate execution
of our strategic priorities
We are continuing to embed skills into the operating model
for how work gets done and how talent flows across the
organisation. We have strengthened the foundations
required to support this shift, including enhancing our skills
architecture, defining skills profiles to set enterprise standards
for role expectations, and embedding skills data more
consistently into core talent processes. This has improved
comparability across businesses and markets, allowing skills
tobe recognised, portable and deployable across our network.
Our approach focuses on complementing core business skills
with human skills in resilience, adaptability, problem-solving,
leadership and human/AI collaboration.
In September 2024, we launched a dedicated AI Academy
designed to empower colleagues through continuous
learning and enhanced adaptability. More than 33,000
colleagues have taken part in the learning so far. The AI
landscape continues to evolve rapidly, and we remain
committed to expanding our AI learning agenda under a
wider AI talent strategy. The focus is on equipping colleagues
with tailored, role-specific solutions that move beyond
awareness towards applied capability, empowering
colleagues to use AI confidently and responsibly.
Our internal skills-building activities are creating career
opportunities and saving costs. In 2025, internal deployment
increased to 47.4 per cent (+1.7 per cent year-on-year and
over a 15 per cent increase from 2023). Of these moves, 43 per
cent were skills-adjacent, where colleagues transition to roles
with related, rather than exact, skillsets to learn on the job.
Our people and culture
Critically, 94 per cent of people leaders report high satisfaction
with deployed talent after six months. This has saved
$1.88 million in 2025 and unlocked $1.75 million inproductivity
through our internal Talent Marketplace.
Responsible use of AI
The Bank’s AI strategy is to ensure AI is scaled safely and
effectively and centred on building the human capability that
powers transformation. Our colleague focus ison AI talent
and literacy – building theworkforce capability that enables
colleagues to work confidently, safely and effectively with AI.
Being AI-ready means understanding what skills the future
ofwork demands and giving people clear, practical ways
tobuild them. We’re defining the skills needed for our
workforce to thrive – human, technical and domain skills
– and embedding them into how we hire, develop and enable
ourteams. Success for us in this work is that every colleague
understands what AI-ready means for their role and has
aclear path to get there.
We build the skills and mindsets required for colleagues
towork effectively with AI by helping our colleagues integrate
human judgement so they can make better decisions, solve
problems in new ways and redesign work to deliver greater
value. We have enabled colleagues to engage with AI in
low-risk, beneficial scenarios, such as our AI-powered
coaching tool, CAISY, which allows them to practice business
and human skills in a simulated environment before applying
it in real situations.
Building leadership capabilities
We have invested significantly in leadership identity,
development and measurement. To improve organisational
health (with fewer layers and wider spans of control) and
enhance the colleague experience, we are transitioning to
fewer but better-equipped people leaders.
People leaders now have access to greater support in critical
moments through the launch of a new HR advisory (HRA)
service. This ranges from helping new people leaders into
their roles, guiding on employee relations issues or helping
drive high performance to engagement. The introduction
ofHRAnow provides a platform for HR to get closer to our
people leaders to proactively shift areas of organisational
health directly with the business. In addition, we have a series
of people leader programmes, with over 5,400 people leaders
attending our leadership programmes in 2025. Wehave also
introduced a First Time People Leader programme and a
refreshed Senior Leader Onboarding programme, Fast Start.
In 2025, over 97 per cent of our people leaders received
feedback, either through our always-on Feedback 365 tool,
available toall colleagues, or through the structured annual
360-degree feedback tool available to people leaders.
Leaders are also provided with a consolidated view of the
environment they are creating for their teams, and feedback
on their leadership skills, as part of their leadership
dashboard. The dashboard brings even greater transparency
to performance and development conversations, highlighting
the importance we place on leadership.
49,000
colleagues have completed skills-based learning,
which exceeded our FY 2025 target of40,300
Standard Chartered | Annual Report 202534
In 2025, the Group sharpened its focus on three strategic
D&Ipriorities:
1 Applicable where legally permitted.
2 The Performance & Pay survey was conducted in Q2 2025 capturing
sentiment on 2024 year end performance and pay cycle.
Unlocking client value through conduct
andhighperformance
We aim to nurture high performance through differentiation
of reward, continuous feedback, and in-the-moment
recognition. Our framework supports people leaders in driving
performance and we are taking steps to improve awareness
of the levers available. We have enhanced the process
ofcalibrating colleagues’ performance, especially at a senior
level, ensuring we positively differentiate outcomes, creating
opportunities for high-potential colleagues.
Recent insights highlight good progress in key performance
habits such as goal setting, exchanging feedback, and
having regular performance check-ins. We are seeing greater
differentiation of pay outcomes for colleagues, aligned to
performance, with greater variations (upwards and
downwards) in total compensation year-on-year.
• In 2025, 86 per cent of colleagues set goals by the February
deadline compared to 75 per cent in 2024.
• More than 378,000 pieces of feedback were exchanged
through Leadership Feedback and Feedback365 in 2025,
with an increase of 4.6 per cent in Leadership Feedback
compared to 2024.
• Since Appreciate, our colleague recognition platform,
launched in 2024, over one million people have been
recognised. In the 2024 Performance and Pay survey,
68per cent of colleagues reported having check-ins at
least quarterly (+3ppt), with a further 16 per cent having
them once in six months.
2
• Overall sentiment around driving high-performance was
positive (people leaders: 82 per cent; all colleagues 84 per
cent), as was sentiment around feedback and recognition
(74 per cent of people leaders and 78 per cent of all
colleagues said they are comfortable providing feedback
to their people leader, an increase of +2ppt from 2024).
We have strengthened our focus on reinforcing good conduct
standards from the top down. In 2025, all MDs attended
sessions outlining their businesses expectations. We have
also extended our ‘It Matters’ programme and all senior
leaders attended in 2025. ‘It Matters’ emphasises the role
ofconduct in building a high-performance environment
andprotecting the business.
Embedding an inclusive workplace
Inclusion is a key enabler for executing our business strategy,
anchored in our purpose. We strive for a dynamic workforce
that reflects our client base across the markets we operate in.
Our approach supports attracting and retaining top talent
alongside better understanding and serving our clients’ needs.
This is not only good for business, but also the right thing to do.
19.1%
of our CEOs are women
33.0%
global senior women
leadership representation
Female representation
Board (%)
54.5%
58.3%
45.5%
41.7%
Management Team (%)
50.0%
57.1%
50.0%
42.9%
Management Team and their direct reports (%)
67.0%
65.9%
33.0%
34.1%
Senior leadership (%)
67.0%
66.9%
33.0%
33.1%
All employees (%)
54.9%
55.0%
45.1%
45.0%
Female Male
Read more on our Board gender diversity onpage141
Refreshing the colleague community approach
Employee-led networks that drive engagement,
belonging and business-aligned impact
Developing a diverse talent pipeline mindset
Wideningthe funnel and developing diverse talent
tobuild the leadership pipeline
Building sponsorship muscle
Equipping leaders to advocate fairly for diverse talent
Our inclusion index measures six key elements including
thebelief that colleagues are advocates for inclusion and
that the Bank clearly communicates how feedback shapes
inclusion initiatives. Our inclusion levels remain high and
arereflected in the 82.1percent of colleagues who shared
positive sentiments inthe 2025 annual My Voice survey.
Thelaunch of six refreshed Global Colleague Communities
has also resulted higher levelsof colleague inclusion
sentiments and engagement. Colleague Community
members have ahigher eNPS (+11.92) and intent toremain
with the Bank (+5ppt) than other colleagues.
Annual Report 2025 | Standard Chartered 35
Strategic report
Our people and culture
Award-winning AI and data improvements
We have a firm belief that in order to deliver optimised value and impact
asabusiness, we need to enable a working environment that delivers
performance excellence. In November 2024, we introduced the first Bank-wide
GenAI application within our goal-setting and performance practices, combining
human-centred AI with leading technologies. The launch of these applications
was closely monitored, and analysis shows positive colleague sentiment
inoverall experience, efficiency and quality of impact. Asaresult ofthis
implementation, we won two SAP Innovation Awards.
Evolving technology offers great opportunities to enhancethe colleague
experience. Notably, in our 2025 MyVoice survey, 82 per cent of colleagues
view AIpositively, withonly 13 per cent expressing concerns aboutdisruption
orbeing unprepared. We are committed toinvolving colleagues in the benefits
AI brings and are identifying ways for colleagues to engage withAI inlow-risk,
beneficial scenarios, such as our AI-powered coaching tool, CAISY. CAISY
allows colleagues topractice business and human skillsin a simulated
environment before applying these skills in real situations.
Embedding an inclusive workplace (continued)
We are committed to further strengthening our inclusive
culture, so all colleagues feel that their identity is understood
and recognised for its uniqueness andanyone with the
capability to excel can do so. We have reviewed and updated
the Group’s employee privacy notices, so it’s clear how
identity data will and will not be used.
Wecontinue to focus on increasing self-declaration
(including socioeconomic status in the UK) so that we can
further improve colleague experience by introducing policies
and interventions representative of the needs of our
diverseworkforce.
We are focused on building a workforce that is representative
of our client base and footprint. 19.1 per cent of our CEOs
arewomen and as at 31 December 2025, our global senior
women leadership representation remains at 33.0 per cent,
reflecting a significant increase of 8.0ppt since 2016 (when
the Group first signed up to the Women in Finance Charter).
We aim to have 35 per cent representation of women at a
global senior level by end of 2028. As of 2025, 36.4 per cent
ofour Group Management Team identified as Asian or ethnic
minority. In the UK, Black representation in senior leadership
is1.5 per cent and ethnic minority in senior leadership is
19.3per cent. To further build the leadership pipeline, we are
supporting diverse talent bystrengthening our sponsorship
efforts, including piloting aprogramme for Black and African
accelerated talent in the UAE, Africa and UK.
Wellbeing as an enabler for sustainable
highperformance
As we raise performance standards, we continue to invest
inthe essentials of our wellbeing agenda, which operates
atan individual, team and organisational level.
In January 2025, we introduced an upgraded version of
wellbeing platform, Unmind. More than 24 per cent of our
colleagues globally have registered for an account (seven per
cent higher than the expected average and over 10 per cent
more than 2024). The wellbeing platform focuses on four
coreareas of support:
• Therapy and coaching – Colleagues can access up to
12virtual sessions a year of coaching, counselling or clinical
psychotherapy, booking a specialist that suits their needs.
Since launching, more than 6,051 sessions have been booked.
• 24/7 helpline – Colleagues can speak to someone on
thephone, wherever they are in the world, 24/7, 365 days
ayear, and can also access basic financial and legal
support. The Unmind Helpline is also available to anyone
in their household, as well as their dependants.
• Wellbeing tools – Colleagues have access to a wide range
of bite-sized courses and short videos on topics such
assleep, overcoming burnout, building resilience and
managing stress – as well as in-the-moment support tools
such as breathing exercises, plus a wellbeing tracker.
• People leader training – This includes practical
insightstoequip people leaders with the knowledge
andskills needed to develop effective and sustainably
high-performing teams, with bite-sized learning.
There are also in-depth courses promoting learning that
supports teams’ psychological safety and identifies the
signs someone might be struggling.
Standard Chartered | Annual Report 202536
Stakeholder engagement
Listening and responding to stakeholder priorities and concerns
iscritical toachieving our purpose and delivering on our brand
promise, here for good. Westrive to maintain open and constructive
relationships with a wide rangeofstakeholders including:
Section 172 Statement
Each director of Standard Chartered PLC confirms that, while performing their duties during the year, they have acted in the
waythey consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members
asa whole and, in doing so, had regard to the factors set out in Section 172(1)(a) to (f) of the Companies Act 2006.
You can read more on how the Board had regard to each Section 172 principle during the year:
Section 172 principles Disclosure Page
A. The likely consequences of any decision in the long term • Our strategy
• Sustainability review
9
66 – 128
B. The interests of the Company’s employees • Whistleblowing
• Diversity
• Sustainability review
118
32 – 36
66 – 128
C. The need to foster the Company’s business relationships
with suppliers, customers and others
• Stakeholder engagement 37 – 41
D. The impact of the Company’s operations on the
community and the environment
• Board activities
• Sustainability review
141 – 145
66 – 128
E. The desirability of the Company maintaining a
reputation for high standards of business conduct
• Whistleblowing
• Integrity, conduct and ethics
118
118 – 121
F. The need to act fairly between members of the Company • Our strategy
• Stakeholder engagement
• Annual General Meeting
• Dividend policy
• Sustainability review
9
37 – 41
466
210
66 – 128
Read more on the Board’s key activities and principal decisions during 2025 on pages 143 to 147
Stakeholder feedback, where appropriate, is communicated
internally to senior management through the relevant forums
and governing committees such as the Sustainability Forum
to the Board’s Culture and Sustainability Committee, which
oversees the Group’s approach to its main relationships
withstakeholders.
Employees
Clients Investors Society Suppliers Regulators and
governments
We communicate progress regularly with external
stakeholders through channels such as sc.com, established
social media platforms and this report.
Read more on how we engage with our stakeholders
andthe initiatives that we are members of at
sc.com/sustainabilitystakeholders
Annual Report 2025 | Standard Chartered 37
Strategic report
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.
Our clients span individuals, entrepreneurs and families in
ourWealth & Retail Banking (WRB) business, and large
corporations, financial institutions, fintechs, governments and
development organisations in our Corporate & Investment
Banking (CIB) business.
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
How the Group engages
Corporate & Investment Banking
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 relationship-led model ensures clients are supported,
notonly in today’s environment, but in planning for the
opportunities and challenges ahead.
Our cross-border network allows us to support clients as
tradeflows have shifted and new corridors of commerce have
opened. Our relationship teams worked closely with clients
tounderstand their liquidity, risk management and financing
needs, ensuring the solutions we provide are highly tailored
and respond to their strategies.
In 2025, 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. We also announced an agreement to sell high-
integrity forest protection carbon credits in Brazil over the next
five years. These partnerships reflect our role in bringing together
public and private capital,technical expertise and global
connectivity to support clients’financing, sustainability and
growth objectives across ourkeymarkets.
As digital assets continued to evolve, we deepened engagement
with clients seeking to develop new forms ofvalue transfer.
Bybeing among the first banks to offer spot crypto trading
forinstitutional clients and expanding ourregulated digital
assets custody services, we opened conversations about how
tokenised assets and digital markets infrastructure will shape the
future offinancial flows. Anexample is our joint announcement
with Capital A Bhd. to explore the development and testing
ofaringgit-denominated stablecoin through Bank Negara,
Malaysia’s Digital Asset Innovation Hub.
Wealth & Retail Banking
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 also extended our engagement, providing opportunities
totheir next generation through initiatives such as our Young
Entrepreneurs Programme, which supported the children of our
clients with a curated programme focused on financial skills,
leadership confidence and mentorship, strengthening
relationships across families.
For ultra-high-net-worth (UHNW) clients, our bespoke
programmes connected them to hard-to-access opportunities:
• The Private Markets Co-Investment Club opened the doors
for clients to explore private market opportunities in a
structured and transparent way.
• Our Global Families Network forum enabled UHNW clients
and their families to participate in intimate forums designed
to support deeper dialogue on topics including succession
planning, philanthropy and long-term investment themes.
In 2025, 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 holistic client engagement, reinforcing our position
as an international wealth manager.
The campaign was featured in a mix of out-of-home advertising
across airports and in-city sites, print advertising, film and
content partnership with leading international, regional and
local media across seven markets – Singapore, Hong Kong,
Mainland China, Korea, Taiwan, the UAE and India.
Across our initiatives, our focus remains on strengthening the
personal connection with clients by offering relevant insights,
personalised guidance and opportunities that support
theirambitions.
How the Board engages
In 2025, while attending Board and committee meetings
inMalaysia and Singapore, the directors also met with
clientsand their representatives including chairs, C-suite
and business leaders from corporates, financial institutions,
SMEs, and Private and Priority Banking clients to understand
their current and future needs.
A presentation on transition finance from a client perspective
was delivered during the Subsidiary Governance Conference
inMalaysia, providing useful insights to the Board and its
subsidiary boards.
Our stakeholders
Standard Chartered | Annual Report 202538
In addition to face-to-face interactions, the directors also
participated in industry events and seminars and received
presentations at Board meetings to stay abreast of market
trends and innovations. This ensured the Board remained
responsive and proactive in addressing client requirements.
Outcomes of engagement
CIB
• We achieved strong income growth in Sustainable Finance,
outpacing growth in global renewables investment. Our client
engagement helped drive the issuance of our first social bond,
for €1 billion, which increased lending toSMEs, particularly
women-owned businesses, helping them create jobs and
expand their impact.
• Client surveys published in 2025 such as the Bank’s Future
ofTrade report and two Islamic Banking reports (one for
corporates and one for financial institutions) provided insights
into how the Group can improve outcomes for clients.
WRB
• We were the most recommended bank among affluent
clients in eight of our top markets, based on independent
market research conducted by RFI Global in the second
halfof 2025.
1
• In our Private Banking client survey, global NPS, global
relationship manager and global net easy scores improved
from the year before. 93 per cent of clients scored usfour and
above (out of five) on overall satisfaction withourservice.
Employees
Why we engage
Our employees are key to driving our performance and
productivity and the diversity of our people, culture and
network sets us apart.
Ensuring we have optimal talent and cultural experience
toenable sustained high-performance from 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.
We proactively assess and manage people-related risks, such
ascapacity, capability and culture, as part of our Group Risk
Management Framework.
Our people strategy, approved by the Board, is future-focused,
with external events accelerating many of the future of work
trends that continue to inform our approach.
Their interests
• Day-to-day experience
• Health and wellbeing
• Reskilling and upskilling initiatives
• Career progression
• Reward and remuneration
• Positive work/life balance
How the Group engages
Frequent feedback, from employee surveys, helps us identify
andclose gaps between colleague expectations and experience.
Colleague sentiment is captured through an annual survey,
known as My Voice, 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 various channels including regular
people leader calls, townhalls ata global, functional and market
level held by our Group Management Team, leadership teams
and CEOs, in addition to opportunities for in-person connections.
Read more on our people and culture on pages 32 to 36
How the Board engages
The Board implements an alternative employee engagement
approach to that recommended by the UK Code. We host
BoardWorkforce Engagement (BWE) events facilitated byINEDs
whogather and convey insights from colleagues across diverse
sectors of the organisation, utilising this information to enhance
and corroborate data collected through employee surveys
andother feedback channels that is presented to the Board and
its committees throughout the year.
In 2025, Board members engaged directly with employees
inSingapore and Malaysia. Prior to these meetings, directors
received briefings on the individual market, which included
analysis of local trends from the annual My Voice survey, along
with pertinent data provided by local and regional management
teams. Insights gathered from these sessions were subsequently
communicated to the Culture and Sustainability Committee
andother relevant stakeholders The BWE events found that
employees value the Bank’s culture and leadership, and areas of
opportunity included technology, communication and strategic
clarity. The feedback also highlighted the importance of
ongoing, open engagement between employees and senior
leaders. Thisengagement enables directors to gain a
comprehensive understanding ofthe challenges, achievements,
concerns, and opportunities, allowing the Board to ensure the
voice ofemployees is reflected in decision-making and its
oversight of our people strategy.
Outcomes from engagement
In response to employee feedback, modifications to the BWE
framework are planned for 2026 to increase the frequency and
improve the structure of the BWE events.
Investors
Why we engage
The Group’s investors include institutional shareholders, private
and non-institutional shareholders.
We rely on capital from both equity and debt investors
toexecute our business model.
We recognise the importance of maintaining open,
transparentand constructive engagement with investors
tosupport sustainable long-term value creation and maintain
market confidence.
1 The survey was conducted among ~1000 Affluent banking clients per market byindependent market research firm, RFI Global.
Annual Report 2025 | Standard Chartered 39
Strategic report
Our stakeholders
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 the Group engages
The Group engages with investors through results presentations,
one-on-one and group meetings, analyst briefings, conferences,
roadshows, investor days, regulatory announcements and the
Group’s website.
How the Board engages
Board-level engagement is an essential element of the Group’s
approach and takes place through a variety ofchannels. During
the year, the Group Chair met with majorinstitutional investors
to discuss governance andstrategy.
The Group Chief Executive and Group Chief Financial Officer
also held meetings with potential and existing shareholders to
discuss business performance and strategic priorities.
The Remuneration Committee Chair led an investor consultation
on proposals for the new directors’ remuneration policy, which
was put to shareholders at the 2025 AGM.
In addition, selected investors were invited to present their
views directly to the Board, and the Group Chair also hosted
astewardship focused event in November 2025.
The AGM is our principal engagement event with our retail
investors, providing them with the opportunity to ask the Board
questions pertaining to the business of the meeting.
The Board also receives regular updates from Investor Relations
and Group Secretariat on investor perceptions and market
developments, ensuring these views are considered during Board
discussions and decisions.
Outcomes from engagement
Feedback received from investors during the year focused onthe
Group’s network strategy and affluent franchise, the underlying
drivers of performance, capital management, efficiency and cost
control, as well as governance matters.
The Board noted the views expressed and will continue to take
such feedback into account, where appropriate, when
formulating and reviewing the Group’s strategic priorities.
All resolutions proposed at the 2025 AGM were passed and we
remain grateful for the continued support of our shareholders.
Read more on the Board’s engagement with shareholders
on page 146
Society
Why we engage
We partner with global and local NGOs to help the Groupand
the Standard Chartered Foundation, formerly Futuremakers,
economically empower under-served young people, especially
women and those with disabilities.
Youth unemployment is a key issue in many of our markets.
The involvement of key external stakeholders that are partofthe
employment and entrepreneurship ecosystem, including local
businesses and governments, is critical to ensuring our
programmes provide participants with theskills, capabilities
and networks that help them secure employment and business
growth opportunities.
Their interests
With our partners, our programmes are designed and
delivered in collaboration with relevant local stakeholders
toaddress key barriers to youth employment and
entrepreneurship. Focus areas include:
• 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 the Group engages
Partners
With the Standard Chartered Foundation, we advanced
strategic partnerships in 2025 with NGOs in support of our goal
to empower under-served young people. Newemployability
programmes to help young people secure decent jobs were
implemented in countries across Asia, aswell as Kenya
andNigeria. We also continued to engage ourpartners to
adaptprogrammes to continue supporting asmany young
peopleaspossible.
Convening and ecosystem building
In 2025, we convened NGOs, multilateral stakeholders,
employers and young people at a high-level hybrid event
during the UN General Assembly, focused on how best to
break down barriers to decent employment for young people
in Africa. To help shape the discussion, Standard Chartered
Foundation collaborated with Business Fights Poverty to
develop a report highlighting new ways of working for
corporate foundations in light of the significant reduction
indevelopment financing in 2025.
We also convened NGOs and other stakeholders as part ofan
effort to design a new ecosystem programme to enabledecent
jobs for young people centred on the blue economy in ASEAN.
Employee volunteering
We offer our employees three days of paid volunteering leave
annually, enabling them to contribute their time, energy and
professional skills where it matters most.
In 2025, we strengthened our employee volunteering
programme by enhancing access to skills-based opportunities,
such as mentoring and training, creating pathways for
employees to apply their professional expertise to positive social
impact. This supports community outcomes across priority areas
including youth employment, financial education, inclusion and
gender equality.
How the Board engages
While in Malaysia, Board members shared their expertise on
leadership with young women from a programme delivered by
the Standard Chartered Foundation and its partner Women
Win. As well as gaining career insights, sharing such expertise
helps develop young peoples’ confidence and professional
communication.
Standard Chartered | Annual Report 202540
To enhance sustainable procurement initiatives and contribute
positively to our communities, in 2025 we partnered with Business
in the Community, a leading UK NGO dedicated toresponsible
business practices. As part of the partnership, we’ve participated
in a sustainable procurement working group to deliver best
practice outcomes to support diverse business opportunities.
How the Board engages
Progress is tracked, on an annual basis, by the Culture and
Sustainability Board Committee and the Group Diversity
andInclusion Council. This supports alignment with our wider
sustainability goals and embeds accountability for progress.
Outcomes from engagement
We remain committed to a diverse and inclusive supply chain in
2026. To broaden our impact, we aim to incorporate our larger
suppliers into our inclusion programmes, encouraging them to
engage and report on their own diverse spending and activities.
Read more on the principles of supplier diversity and
inclusion in our Supplier Diversity and Inclusion Standard at
sc.com/supplier-standard
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 appropriate
toaglobal systemically important bank
• 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 the Group engages
We engage with government, regulators and policymakers
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.
How the Board engages
The Board, either collectively or individually, engaged with
relevant policymakers and regulators in several jurisdictions
across our global footprint. Topics of discussion included
changes in the regulatory landscape for financial services,
developments in new regulation in such areas as digital assets,
and sustainable finance, and the issue of fragmenting rule sets
across the global context.
Outcomes from engagement
The Group seeks to engage openly and strengthen relationships
with the regulators in the markets in which itoperates.
Outcomes from engagement
• Enabled 16,305 jobs for young people in 2025, impacting
over145,000 lives in society
1
• We aim to enable 250,000 jobs by 2030
2
• We also aim to convene and collaborate for ecosystem
building to make a bigger impact in enabling jobs beyond
ASEAN and to our other regions, through our youth
programmes.
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.
Our partnerships enable diverse suppliers to access new markets,
build capacity and strengthen their business resilience, while
providing us with fresh perspectives, agile solutions, and stronger
community connections. Through these relationships, we
continue to advance shared growth, inclusion and long-term
value creation for all stakeholders.
We continue our focus on decarbonising our supply chain. We
work with our suppliers to calculate emissions and set reduction
targets where appropriate.
Read more on supply chain management and engagement
onpage 96
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 the Group engages
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 programmes.
In 2025, in partnership with WEConnect International –aglobal
network supporting women-owned businesses –we hosted three
virtual and three face-to-face events across our markets. By
partnering with WEConnect International directly, we have
continued to identify and expand our diverse supplier base.
Through our events, we provide a platform for our suppliers
tocollaborate, share knowledge and exchange best practices.
The events foster transparency, supports capability building,
promotes recognition and ensures our suppliers are aligned with
our sustainability standards and decarbonisation goals.
1 Lives impacted estimates are drawn from our social return on investment model.
2 This target has been revised upwards from 140,000 to 250,000 jobs enabled by 2030, due to a) a revision of the employability KPI to account for under-served male
participants and b) moving the baseline from 2024 to 2019 to show progress since the start of programming.
Annual Report 2025 | Standard Chartered 41
Strategic report
Managing risk
2025 saw the emergence of a multipolar global economy,
with recent geopolitical shocks, industrial policy, and
protectionist measures accelerating fragmentation in trade,
technology, and capital flows. Heightened trade tensions
from US tariffs were a focal point during the year, and
although this tapered in the second half, uncertainties
remain. Constant fluctuations in policy changes and
escalating conflicts led to increased economic uncertainty,
market volatility and elevating refinancing risks across
emerging markets, among other factors. Throughout the year,
we maintained a proactive approach to risk management
and remained anticipatory in addressing emerging risks.
Wemonitored thebusiness through our well-established risk
frameworks and practices, such as stress tests and portfolio
reviews, highlighting any potential concentrations to be
acted upon. We conducted thorough assessments of trade
linkages and identified vulnerable countries and sectors.
Beyond trade tensions, we closely monitored secondary
impacts and categorised country risks through our
Group Chief Risk Officer’s review
Country Risk Early Warning System. We strengthened
ourstress-testing capabilities by increasing the number of
management stresstests conducted. The Group continues
tomonitor direct exposures to countries involved in conflicts
and the resultant secondary effects. Wealso remain vigilant
in managing risks from escalating conflicts by continuously
monitoring sovereign risks and scanning for topical and
emerging threats.
We are seeing an evolution in the exchange of value
throughnew forms of digital money via decentralised
systems usingdistributed ledger technology that offer an
alternative to traditional payments. Financial institutions such
as digital-native banks as well as corporates are increasingly
looking to innovations such as stablecoins to take advantage
of their potential benefits, which include faster settlement,
programmability and more efficient cross-border payments.
The Group’s strong performance in2025
isunderpinned by our commitment to
effective risk management and a strong
track record of managing risks during
periods of volatile macroeconomic and
geopolitical conditions.
We proactively manage risk
inachangingworld.
Jason Forrester
Group Chief Risk Officer
Standard Chartered | Annual Report 202542
Digital assets such as stablecoins bring about new risk
vectors. As we increase our digital assets activity across the
Group, we remain focused on understanding how these risks
may materialise, and evolving our relevant risk frameworks
accordingly, and in compliance with relevant legislative and
regulatory regimes.
Banks are increasingly shifting from balance-sheet lenders
tocredit intermediaries as private credit expands, reflecting
regulatory constraints and the growing role of non-bank
capital. This evolution redistributes risks beyond the banking
sector, requiring enhanced oversight and underscoring
thevalue of disciplined credit underwriting.
Read more on ‘Topical and Emerging Risks’and
howwearemitigating them on pages 45 to 49
Corporate & Investment Banking (CIB)
Our CIB credit portfolio remained resilient amid volatile
market conditions, with overall good asset quality as
evidenced by our largely investment-grade corporate
portfolio (31 December 2025: 74 per cent; 31 December
2024: 74 per cent). In consideration of the macroeconomic
challenges, we have been pre-emptive in assessing potential
impacts of a potential trade war escalation by conducting
extensive stress tests and portfolio reviews across vulnerable
countries, sectors and clients. While the risk of re-escalation
inglobal tariffs has moderated, we continue to update
ourassessments based on latest developments and take
timely risk mitigating actions as appropriate. Outside tariffs,
we remain vigilant in monitoring geopolitical risks, including
conflicts in Ukraine and the Middle East, and various US
policy risks, and their impact across geographies, commodity
prices and clients, as well as sovereign risks across our
globalfootprint. The Group’s exposure to data centres and
private credit is subject to defined portfolio limits, stringent
underwriting standards, concentration sub-caps and regular
portfolio reviews. We continued to de-risk in China and Hong
Kong commercial real estate, and have limited exposures
toUS regional banks and insurance companies.
Our CIB Traded Risk increased during 2025, as evidenced
bythe higher average Value at Risk (VaR) (31 December
2025: trading $25.4 million and non-trading $47.0 million;
31 December 2024: trading $21.1 million and non-trading
$34.2 million). The higher non-trading VaR was driven by
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. While elevated, the increased risk remained within
risk appetite (RA) during the period. Stress tests were used
extensively to detect any emerging issue in terms of Market
Risk or Counterparty Credit Risk, with mitigating actions taken
where required. There were no margin call issues with our
collateralised counterparties, including hedge funds.
Concentration Risk is monitored tightly and contained by
limits. Velocity of assets in the trading book is enforced via
tight ageing limits. We remain vigilant and are continuously
enhancing our modelling and stress-testing capabilities
inanticipation of further market volatility.
Wealth & Retail Banking (WRB)
The WRB credit portfolio continued to demonstrate
resilienceamid the economic uncertainties and geopolitical
challenges. Portfolio management actions have continued
tobe dynamically adjusted in the last 18 months in response
tothechallenging and rapidly changing macroeconomic
andoperating conditions, with scenario testing being utilised
tomanage the uncertainties. As a result of credit portfolio
actions taken, we are seeing signs of credit performance
improvement. We remain focused on proactive risk
management across credit origination, portfolio management
and collections to manage the risks of a challenging and
uncertain economic environment and associated market
volatility on the WRB portfolios. We are also refining our
portfolio strategy in our consumer unsecured lending and
digital partnerships portfolios to selectively reduce exposure
and to drive better profitability. Ourend-to-end Credit Risk
management actions are aligned for the successful execution
of the pivot to the ‘affluent’ segment. While the WRB strategy
leverages on the market-wide global growth in demand for
wealth management services, an essential component of
ourcompetitiveness will be our risk management approach,
which remains grounded in core principles and our long-held
market expertise while also adapting to new risks presented
by the dynamic global landscape.
Treasury Risk
Liquidity remained resilient across the Group and major
legalentities (31 December 2025 liquidity coverage ratio
(LCR): 155per cent; 31 December 2024: 138 per cent) with
asurplus toboth RA and regulatory requirements. We are
focused onproactively managing our capital, Interest Rate
Risk in the Banking Book (IRRBB) and liquidity risks, including
increasing our access to contingent funding sources as
appropriate, andenhancing our framework for managing
Treasury Risksinvolatile marketscenarios. The Group remains
well capitalised with CET1 ratio at 14.1 per cent (31 December
2024: 14.2 per cent) while the Leverage ratio was 4.7 per cent
(31 December 2024: 4.8 per cent).
Read more on managing Liquidity and Funding Risk
andIRRBB on pages 281 to 285
Annual Report 2025 | Standard Chartered 43
Strategic report
The ERMF is complemented by frameworks, policies and
standards that are mainly aligned to the principal risk types
(PRTs) and is embedded across the Group, including its
branches and subsidiaries.
1
The ERMF enables the Group to manage enterprise-wide
risks, with the objective of maximising risk-adjusted returns
while remaining within our RA.
Principal risk types and risk appetite
PRTs are those risks that are inherent in our strategy and
business model and have been formally defined in the
Group’s ERMF. These risks are managed through distinct risk
type frameworks (RTFs) that are approved by the Group
Chief Risk Officer (GCRO). The table below details the
Group’s current PRTs, definitions and our RA statements.
1 The Group’s ERMF and system of internal control applies only to wholly controlled subsidiaries of the Group, and not to associates, joint ventures or structured
entities of the Group.
2 Fraud forms part of the Financial Crime RA Statement but, in line with market practice, does not apply a zero-tolerance approach.
Our risk management approach
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.
The Group should maintain sufficient capital, liquidity
andfunding to support its operations, and an interest
rateprofile that ensures 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
(ICS) 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 while incidents are unwanted, they
cannot be entirely avoided.
Financial
CrimeRisk
2
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
while 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 or 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 while 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 misestimation 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,
whileaccepting some model uncertainty.
Read more on our risk management approach on pages 220 to 232
Our Enterprise Risk Management Framework (ERMF) sets out the principles and minimum
requirements for risk management and governance across the Group.
Standard Chartered | Annual Report 202544
As part of our risk identification process, we have updated
ourTopical and Emerging Risks (TERs) from those disclosed
inthe 2025 Half Year Report. Below is a summary of the TERs,
and the actions we are taking to mitigate them based on our
current knowledge and assumptions.
The list of TERs is not exhaustive and there may be additional
risks that could have an adverse effect on the Group.
Ourmitigation approach for these risks may not eliminate
them but demonstrates our awareness and attempts to
mitigate or manage their impact.
Macroeconomic and geopolitical considerations
There is a complex interconnectedness between risks due to
the direct influence of geopolitics on macroeconomics, as well
as the global or concentrated nature of key supply chains.
Amore complex, differently integrated and generally more
volatile global landscape could challenge cross-border
business models but also provide new business opportunities.
The Group is exposed to these risks directly through
investments, infrastructure and employees, and also indirectly
through its clients. While the primary impact is financial, there
may be other ramifications such as reputational, compliance
or operational considerations.
Expanding array of global tensions and transition
oftheinternational order
The global geopolitical landscape has shifted from a
rules-based international order to a system driven by relative
power dynamics. Fluid political and economic alliances are
evolving, with the landscape further complicated by ongoing
conflicts, e.g., in Ukraine and the Middle East.
In the near term, geopolitical fragmentation is also
hampering collaboration on key global challenges.
Theerosion of international rules and the organisations
thatunderpin them could undermine coordination efforts
onstructural global issues, such as climate risk mitigation, or
ad hoc emergencies. The dismantling of some international
development organisations may also impact future
cooperation efforts, including on combatting the potential
spread of future pandemics. These trends are prompting
reform at multinational institutions, albeit the pace is slow.
National interests are returning more visibly, with national
security or prosperity goals re-shaping engagement within
and between countries. Domestic political volatility is
increasing across numerous markets. Internationally, alliances
are reorganising. Importantly, the US’s use of tariffs to achieve
both economic and political goals, rollbacks of policy in
areassuch as Environmental, Social, and Governance (ESG),
and direct interventions in global conflicts have all changed
themacroeconomic and geopolitical landscape. Some
ofthese actions have caused fractures between the US
andtraditional allies, leaving many long-standing bilateral
relationships in a state of flux.
The positioning of ‘middle powers’ is complex and evolving,
with a rise in ‘mini-lateral’ groups of countries that are
ideologically or geographically aligned. The negotiating
power of these alliances is strengthened where they are
instrategic areas or involve the control of key resources.
The Group may be impacted by direct exposure to countries
engaged in conflicts, as well as by second-order effects
onitsclients and markets such as agricultural commodities,
oiland gas. The sanctions landscape is also becoming
increasingly complex, with potential divergence across
regimes requiring heightened awareness in running
acompliant, global operation.
The malicious use of AI-enabled disinformation could
furtherundermine trust in the political process. Terrorism and
cyber warfare are also ongoing threats, with unpredictability
exacerbated by the wider range of ideologies at play and
enhanced capabilities to disrupt infrastructure in rival countries.
Macroeconomic uncertainty including potential
pricebubbles
While many tariff deals have been struck between the US
and the rest of the world, the average global tariff level has
increased significantly relative to a year ago. The potential
for change remains, with the US administration applying
additional tariffs in response to non-economic issues or
toachieve leverage in other areas.
Despite this, global trade has broadly readjusted and
financial markets have not been adversely impacted.
Therelative alignment between the US and China is a major
factor. However, dislocation risks persist, and headwinds
arebrewing in export-reliant locations such as South East
Asia. Friction has also been seen around the export of rare
earthmetals from China. Potential uncertainty has driven
a‘debasement trade’ shift to hard assets, with the price
ofgoldincreasing by 65 per cent in 2025.
Although the interest rate cut cycle has begun, the short-term
trajectory remains uncertain. Tariffs, supply chain disruption,
strong labour markets and higher deficits could be inflationary,
leading to higher rates. In contrast, aggressive cuts could
further fuel inflation. Developed markets have diminished
fiscal flexibility to react due to their high debt levels and
social burdens. There are growing concerns inEurope,
wherefiscal weakness in France and government instability
inGermany threaten to undermine the European Union’s
strongest members and the integrity of the bloc. Volatile
interest rates could also impact the Group’s net interest
income outlook.
Topical and Emerging Risks
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 that may have the potential to adversely impact our business.
Annual Report 2025 | Standard Chartered 45
Strategic report
The global landscape remains challenging for businesses,
with structural spending still a risk while volatility remains.
Asother cost pressures such as the ESG transition or keeping
up with technological advances build, companies may start
to feel a squeeze, especially if interest rates do not fall
asrapidly as expected.
Tariff volatility, policy unpredictability and uncertainty
overthe continued independence of the Fed could impact
investor perceptions of risk-free assets across global markets,
and encourage a gradual and steady diversification. In an
extreme case, the rest of the world could reduce trade with
the US, which could result in further weakening of the US
dollar, challenging its status as the global reserve currency,
orrisk premia on traditionally risk-free assets such as US
Treasuries. However, these are unlikely to materialise
intheshort term.
One potential headwind for global markets could be a
downturn caused by the bursting of the perceived AI bubble,
with valuations of key players and significant investment
from private credit players in the sector drawing some
concern. A correction would have implications to the
broadereconomy, with sectors such as energy, construction
and commercial real estate all highly dependent on AI
infrastructure growth, particularly data centres. Conversely,
the AI race is fueling growth in demand for semiconductor
chips, whose availability and price are becoming a concern.
Concentration risk in sectors with an AI or semiconductor
nexus needs to be monitored.
The private credit sector is also under greater scrutiny, with
concerns over default rates and increasing connectedness
with traditional banks and the insurance industry. Lack of
regulation or transparency, and lower underwriting standards
all heighten inherent risks and make the segment more
susceptible to downturns and other threats such as fraud.
While idiosyncratic risks remain, emerging markets are
generally seeing improved sentiment as debt restructurings
have progressed and acute sovereign default risks have
receded in certain markets. Multilateral support mechanisms,
alongside bilateral funding, have helped to shore up external
positions in several emerging markets. Trends such as
de-dollarisation and disintermediation through alternative
payment channels may have a larger impact in emerging
markets, and how credit risk is managed in such centres.
Supply chain issues and key material shortages
Geopolitical volatility, shifts towards protectionism, and
ongoing conflicts have complicated the operation of global
supply chains. Countries are ‘de-risking’ through diversifying
their supply chains. This includes tactics such as reducing
reliance on rivals or concentrated suppliers, looking to either
re-industrialise or make use of near-shoring and friend-
shoring production, and forming entirely new relationships.
The growing need for minerals and rare earth elements
topower future technologies can be leveraged to achieve
economic or political aims by restricting access. This can
bolster the negotiating influence of refiners and producers
such as China, Indonesia and some African markets.
However, AI applications could provide additional supply
chain robustness, as inefficiencies are reduced by predictive
analytics around supply and demand, weather patterns
andmaintenance requirements.
ESG considerations
Evolving ESG dynamics
Stakeholder scrutiny on ESG commitments and practices
continues. Regulators are implementing standards, reporting
requirements and timelines that can vary significantly,
leading to further complexity in ensuring compliance across
different jurisdictions.
Greenwashing risk remains heightened, with both regulator
and non-governmental organisation scrutiny on market
integrity. The Group maintains its external commitments to
achieve net zero targets and mobilise sustainable financing
amid shifting global attitudes.
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.
Frontier technologies such as quantum computing and AI
may also come with substantial energy and water demands.
These need to be understood, particularly the impact on
companies’ ability to deliver against sustainability targets.
Environmental risks such as loss of biodiversity pose
incremental challenges to food, health systems and energy
security. Modern slavery and human rights concerns are
increasingly in focus, expanding beyond direct operations
toextended supply chains.
How these risks are mitigated
• 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
RAmetrics.
• We have a dedicated country risk team that closely
monitors sovereign risk.
• We maintain a diversified portfolio across products
and geographies, with specific RA 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.
Topical and Emerging Risks (TERs)
Standard Chartered | Annual Report 202546
New business structures, channels andcompetition
Competitive disruption
Sources of disruption and disintermediation to traditional
finance are increasing, with more established fintech and
private credit sectors being joined by increasing use cases for
digital assets. Stablecoins could provide alternative payment
and deposit channels, with adoption expected to be most
prevalent in emerging markets where local currencies are
highly volatile. This could lead to deposit outflows from
traditional banking products.
While there is increasing regulatory scrutiny on alternative
financing providers, such as the Bank of England’s proposed
stress test for the private credit market, there is still a
governance gap that could put banks at a competitive
disadvantage.
Financiers that can harness technology can rapidly improve
their market share, as the concept of a hyper-personalised
‘segment of one’ is increasing in prominence, and may change
marketing, client service and distribution channels.
The proactive management of the impact of AI and more
nascent technologies such as quantum computing may lead
to sunk costs into projects that are ultimately not required
ordo not become part of daily operations.
Rapid adoption of AI
The expansion of AI capabilities is increasingly pervasive and
pivotal to business operations across industries. Traditional
finance faces adoption challenges in complying with existing
regulation and governance standards. Cost pressures and
lack of key skills in the industry could hamper a swift transition.
The increased use of partnerships with specialist tech
providers is operationally efficient, although it increases
third-party and model risks and requires enhanced due
diligence toensure secure adoption.
1 By suppliers we are referring to external third parties (vendors) that have a commercial arrangement with the Group for the provision of goods and/or services.
Examples of suppliers include landlords, management consultants, and IT service providers.
The integration of more sophisticated insights utilising big
data and AI could enhance the services offered to clients.
However, if such capabilities are widely available it may
impact banks’ ability to differentiate. AI also has implications
on broader considerations such as the ethical use of data
andprotecting privacy and security, and the increase in
‘shadow AI’ or the use of unauthorised AI channels or tools.
There has been a large increase in the use of AI in fraud,
scams and spreading misinformation. AI powered deepfakes
and autonomously generated malware are changing the
nature of cyber threats, in particular increasing the speed of
attack. However, the availability and maturity of security and
controls continues to lag development of the technology itself.
There are also potential societal and economic impacts from
replacement of jobs, which may be concentrated in some
sub-sectors and disproportionately impact junior positions
and youth entering the workforce. Leveraging the benefits
ofaugmented AI while managing these risks will be a core
part of the Group’s business model.
Cyber, data and operational resilience
An expanding digital footprint and integration of smarter
AIsystems increases inherent cyber and operational risk, with
more opportunities for cybercriminals to gain entry or access
to corporate assets, including infrastructure such as cloud
andthird-party enabled services. These threats extend to
ourclients, with the Group at risk of financial loss if they are
materially affected.
Reliance on third parties for critical processes is an
increasingregulatory focus and can introduce significant risks
if thesethird parties fail to deliver or face operational issues.
Assupply chains become more complex and digital, security
risksare shifting down to 4th and nth party. This increased
interconnectedness is likely to further reduce the tolerance
forerrors and outages.
Ongoing geopolitical tensions increase the risk of conflict
spilling into the cyber domain, including cyber risks from
nation-state actors seeking to disrupt operations, access
sensitive information, or gain strategic advantage. The scale
and sophistication of threats continues to increase, with
ransomware a persistent concern. The barriers to entry for
attacks is reducing, and malicious actors are embracing new
wave technology with increased potency, such as AI. In the
longer term, advances inquantum computing could threaten
encryption, one of the core aspects of security, which will
necessitate a complex global transition to enhance data
architecture. There are alsogrowing data sovereignty
requirements to localise data, systems and operations,
withdata increasingly recognised asbeing at the centre
ofglobal trade.
The adoption of new technologies, products or business
models requires clear operating models and risk frameworks.
Itis essential to upskill our people to develop in-house
capabilities to manage associated risks. People, process
andtechnology agendas must be viewed holistically to
effectively implement new infrastructure and reduce the
riskof obsolescence.
How these risks are mitigated
• 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.
• We have delivered on our commitment to be net zero
in our own operations (Scope 1 and 2 emissions) by the
end of 2025 and intend to maintain this going forward.
• We embed our values through our Position Statements
and a list of prohibited activities. We also maintain
ESGR standards to identify, assess and manage risks
when providing services to clients.
• Management of greenwashing risks is integrated
intoour ESGR RTF, 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
1
that are identified as presenting higher risks
of modern slavery are subject to a risk assessment.
Read more on our Modern Slavery Statement at
sc.com/modernslavery
Annual Report 2025 | Standard Chartered 47
Strategic report
Regulatory considerations
Regulatory evolution and fragmentation
Amid other changes in regulation, we are seeing a rise
inconsultations relating to digital assets, with potential
inconsistent standards across jurisdictions raising risks
aroundlegal enforceability, ownership and capital treatment.
There is also greater regulatory interest in the use of AI and
itsethical application in decision-making. As technologies
getmore complex, we also see increased focus on consumer
protection, particularly with ageing populations and a rise
inpopulist agendas.
In many Western jurisdictions, competitiveness and growth
are becoming more pressing issues for regulatory authorities.
Such policymaking comes at a natural tension with resilience
considerations, as seen in the divergence in timing and
approach of Basel 3.1 adoption across the US, UK and some
Asian markets. Other areas of divergence include ESG
regulation, and extraterritorial and localisation requirements,
including data sovereignty.
While some deregulation can be beneficial, an uncoordinated
global regime makes it challenging to manage cross-border
activities, with additional complexity and cost.
Topical and Emerging Risks (TERs)
How these risks are mitigated
• We continuously monitor and evaluate emerging
technology trends, business models and opportunities.
• We have enhanced governance for evolving areas,
such as the Digital Asset Risk Committee.
• We have instituted an 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 our Compliance and Information and Cyber
Security (ICS) RTFs. We maintain 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 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 colleague Code of Conduct and
Ethics. We also assign mandatory ICS learning,
phishing exercises and role-specific training.
• The 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.
• We identify security threats to third parties and deliver
threat intelligence and briefings to strategic clients
toenhance our service 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.
How these risks are mitigated
• 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 focussed on protecting consumers
byproactively identifying and mitigating risks such
asscams, phishing and impersonation.
Standard Chartered | Annual Report 202548
Demographic considerations
Skills and the competition for talent
Evolving client expectations and rapid technological
development are transforming the workplace, accelerating
changes to how people work, connect and collaborate.
Thefuture workforce will continue to augment, with a focus on
ensuring that human and technical skills intertwine effectively.
Workforce expectations also continue to evolve, with health,
wellbeing and purpose becoming top focuses for talent
attraction. Maintaining an EVP that caters for multiple
generations with differing priorities is a key challenge
inbuilding a high-performing, integrated employee base.
Flexible working is an increasingly important factor for
colleagues and an overall positive factor in workforce
experience. However, there are risks around potential lack
ofdevelopment opportunities from face-to-face interaction,
especially for more junior employees. The role of people
leaders will continue to evolve to enable the right balance
forboth individuals and teams.
Demographic and migration trends
Developed markets’ budgets will be increasingly strained by
ageing populations, and nationalistic policies on issues such
as immigration could exacerbate the problem. Conversely,
emerging markets are experiencing fast-growing, younger
workforces. Population growth will put pressure on key
resources to fully capitalise on the ‘demographic dividend’.
Existing fiscal and social vulnerabilities may also hinder
emerging markets’ ability to turbocharge their growth.
Population displacement is rising, which may increase the
fragility of societal structures in vulnerable centres. Large
scale movement could cause social unrest and accelerate
thespread of future pandemics. The ability to react to such
external scenarios may be diminished due to broader declines
in international institutions and reduced global cooperation.
Societal unrest continues to increase, and the threat of
terrorist activity and political violence has also heightened
over the past 12 months.
Net population growth for the 21
st
century will be in
less-developed countries. Proactively planning for these
demographic shifts will be essential in maintaining an
efficient global business model.
Jason Forrester
Group Chief Risk Officer
24 February 2026
How these risks are mitigated
• Our People Strategy builds a future-ready,
multi-generational workforce through structured
re-skilling and mobility programmes; 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 our employees working flexibly.
• Our Human Rights Position Statement outlines our
commitment to maintain a safe, supportive, diverse
and inclusive workplace, and to support social
andeconomic development in the communities
inwhich we operate.
Annual Report 2025 | Standard Chartered 49
Strategic report
We have included non-financial sustainability-related information within this Annual Report, which we believe best meets
theinterests of our key stakeholders as described on pages 37 to 41. This is based on external stakeholder engagement
andtheresults of our materiality assessment on pages 72 to 73.
The table below sets out where information can be found on key non-financial matters in this report, in compliance with the
non-financial reporting requirements contained in sections 414CA and 414CB of the Companies Act 2006. This comprises our
non-financial and sustainability information statement for 2025.
Climate-related information required under sections 414CA and 414CB of the Companies Act 2006, the UK Financial Conduct
Authority’s (FCA) UK Listing Rule 6.6.6R (8) and Part D of the Environmental, Social and Governance Reporting Code (Appendix
C2to The Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited) is integrated throughout
thisAnnual Report.
Read more in our Climate reporting index on pages 458 to 465
Non-financial and sustainability
information statement
Section information and policies including risks, due diligence processes and outcomes
Reporting requirement Page
Environmental matters
Our operations 93, 109, 110, 116
Our suppliers 96, 109, 110, 116
Our clients 97, 109, 110, 116
Employees
Employees 39
Employee policies and engagement 213
Health, safety and wellbeing 215
Diversity 214
Human rights
Suppliers 96
Respecting human rights 117
Social matters
Commercial activities 113
Philanthropic activities 113
Anti-corruption and anti-bribery matters
Code of conduct and ethics 118
Fighting financial crime 119
Political donations 216
Anti-money laundering 117
Speaking Up 118
Description of business model
Who we are and what we do 2
Our strategy 9
Our business model 10
Principal risks and uncertainties
Risk review and Capital review 218
Non-financial KPIs
Supplementary people information 444
Supplementary sustainability information 450
Further disclosures, including our Group policies, are available at sc.com/sustainabilitylibrary
Standard Chartered | Annual Report 202550
Viability statement
The directors are required to issue a viability statement
regarding the Group, explaining their assessment of the
prospects of the Group over an appropriate period of time
andstate whether they have reasonable expectation that
theGroup will be able to continue in operation and meet
itsliabilities as they fall due.
The directors are also to disclose the period of time for which
they have made the assessment and the reason they consider
that period to be appropriate.
In considering the viability of the Group, the directors
haveassessed the key factors including, but not limited to;
inflationary pressures, spikes in oil prices, disruption to global
supply chains, rise in interest rates, depreciation in emerging
market currencies, market volatility, economic recession, and
geopolitical events likely to affect the Group’s business model
and strategic plan, future performance, capital adequacy,
solvency and liquidity taking into account the emerging risks
aswell as the principal risks.
The viability assessment has been made over a period
ofthreeyears, which the directors consider appropriate as
itiswithin both the Group’s strategic planning horizon and
supports thebasis upon which its regulatory capital stress tests
are undertaken and is representative of the continuous level
ofregulatory change affecting the financial services industry.
The directors will continue to monitor and consider the
appropriateness of this period.
The directors have reviewed the corporate plan, which is
theoutput of the Group’s formalised budgeting and strategic
planning process. The 2026 Corporate Plan reflects further
refinement of the strategy pursued for the past several years,
with continued focus on differentiated cross-border banking
capabilities for Corporate and Institutional clients and leading
Wealth Management expertise for Affluent clients, supported
by ongoing leadership in Sustainability. Measures are being
implemented to increase the Group’s resilience toongoing
external environment uncertainties and to sharpen focus
onareas of strength.
The Corporate Plan is evaluated and approved annually
bytheBoard, with confirmation from the Group Chief Risk
Officer that it is aligned to the Enterprise Risk Management
Framework andremains within the Group Risk Appetite
Statement. Theplan incorporates future projections
coveringprofitability, capital and liquidity requirements,
keyregulatory ratios and resource needs over the planning
horizon. It details the Group’s key performance measures
including forecast of profit, CET1 capitalratio, return on tangible
equity, cost to income ratio andcashinvestment projections.
The Board monitors the Group’s performance bycomparing
reported results to the budget andthe corporate plan.
The Group performs enterprise-wide stress tests using arange
of bespoke hypothetical scenarios that explore theresilience
ofthe Group to shocks to its balance sheet andbusiness model.
To assess the Group’s balance sheet vulnerabilities and capital
and liquidity adequacy, severe butplausible macro-financial
scenarios explore shocks that trigger one or more of:
• Global slowdowns including recessions in China, Asian and
Western economies that can be acute or more protracted,
resulting in severe declines in property prices
• Sharp falls in world trade volumes and disruption to global
supply chains, including the severe worsening of trade
tensions and rise of protectionism
• Inflationary pressures in the global economy including
volatility in commodity prices
• Significant rises in interest rates and depreciation
inemerging market currencies, resulting in heightened
sovereign risk
• Financial market volatility, including significant moves
inasset prices driven by a combination of macroeconomic
and geopolitical events.
In 2025, the primary focus has been on:
• The effect of increased global trade tensions leading
tosevere economic downturns across Asia and other
regions,coupled with interest rate reductions and lower
commodity prices
• The effect of high interest rates and persistent inflation,
including spikes in the oil price, combined with severe
marketvolatility and severe economic downturns
inChinaand other economies
• The impact of intensifying geopolitical tensions oneconomic
and financial activity in our footprint marketsincluding
anassessment of both financial andoperational risks
• The successful completion of the Bank of England’s
BankCapital Stress Test
• Testing liquidity resilience through severe scenarios similar
toSilicon Valley Bank or Credit Suisse and fully integrating
them in the liquidity risk framework to inform the
requirement for contingent collateral actions.
In 2025, the Group undertook a number of Climate Risk
stresstests, including those mandated by the Otoritas Jasa
Keuangan (OJK), Central Bank of United Arab Emirates
(CBUAE), Bank of Mauritius, and an internal management
scenario analysis. The Group also submitted the Monetary
Authority of Singapore’s (MAS) and Bank Negara Malaysia’s
(BNM) Climate Risk stress tests, which started in 2024.
For the internal management scenario analysis, we leveraged
Phase 4 of the Network for Greening the Financial System
(NGFS) scenarios that cover a wide range of transition
andphysical risks. CIB stress testing focused on corporates,
leveraging internally built and enhanced climate models along
with quantitative methods that consider a range offactors
including, but not limited to, the client’s financials, their
emissions profile, transition plans and physical risk adaptation.
WRB stress testing focused on our consumer mortgage
portfolio by performing stranded asset analysis to identify
properties that are expected to become uninhabitable and/or
unusable due to increased frequency and intensity of physical
risk events. This included examining exposure concentration
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.
The expected credit losses across the climate scenarios are
estimated to be within monitoring thresholds and considered
to be marginal. We believe that the level of these losses can
remain controlled by continuing to take necessary actions
which the Group is already doing across sectors – engaging
with our clients on just transition and supporting them
inenhancing their climate transition plans and physical
riskadaptation profiles.
Annual Report 2025 | Standard Chartered 51
Strategic report
In 2025, Climate Risk was also considered as part of ourformal
annual corporate strategy and financial planningprocess.
Under this range of scenarios, the results of these stress
testsdemonstrate that the Group has sufficient capital and
liquidity to continue as a going concern and meet regulatory
minimum capital and liquidity requirements.
To evaluate the vulnerabilities inherent in the Group’s
businessmodel, we examine extreme scenarios that could
potentially result in the firm reaching the point ofnon-viability.
Theprobability of such events occurring isconsidered to be
low.During the year, we analysed the resilience of our critical
technology applications in the event of severe outages across
multiple geographies, along with itsimplications for our
operational model. The insights derived from these assessments
can provide valuable guidance forstrategy formulation, risk
management, operational resilience, as well ascapital and
liquidity planning.
The directors further considered the Group’s Internal
LiquidityAdequacy Assessment Process (ILAAP), which
considers the Group’s liquidity position, its framework and
whether sufficient liquidity resources are being maintained
tomeet liabilities as they fall due.
The Board Risk Committee (BRC) is appointed by the
Boardtoassist and advise the Board in fulfilling its oversight
responsibilities in relation to the key risks of the Group and
makes recommendations to the Board on the Group’s Risk
Appetite Statement. Its specific responsibilities include review
of theGroup’s Enterprise Risk Management Framework,
assessment of emerging and existing principal risks, oversight
of stress testing, approval of certain capital and liquidity
regulatory submissions and review of material acquisitions
anddisposals.
The BRC receives regular reports on the Group’s key risks, aswell
as updates on the macroeconomic environment, geopolitical
and sovereign risks, market developments, andrelevant
regulatory updates.
In 2025, the BRC carefully monitored sovereign and geopolitical
risks arising from US tariffs, global conflicts and market volatility
and considered the potential impact of key emerging risks and
opportunities on the Group, our clients, colleagues, markets and
regulators. The Committee continued to focus on strengthening
the Group’s approach to stress testing andchallenged the
outcomes and key findings arising from stress tests including
those arising as part of the Internal Capital Adequacy
Assessment Process (ICAAP) submission and the 2025 Bank
ofEngland (BoE) Bank Capital Stress Test. The Committee
challenged management to consider the use of these stress
tests to further enhance performance and accelerate the use
ofstress testing tools. There were regular updates to the
Committee on the Group’s recovery and resolution capabilities,
and theCommittee provided feedback on the Group’s activities
to improve recovery and resolution planning capabilities and
arrangements. The Committee also reviewed and discussed
updates on, and tracked progress of, key technology-related
change programmes, holding management to account on
deliverables and committed timelines. Information and Cyber
Security (ICS) risk remained an important priority and progress
made on ICS risk management was regularly reviewed.
TheCommittee paid particular attention to the CIB and WRB
credit portfolios to ensure they remain resilient, and considered
portfolio deep dives including oil and gas, solar and electric
vehicles in light of the evolving geopolitical landscape.
Based on the information received, the directors considered
theprincipal uncertainties as well as the principal risks in
theirassessment of the Group’s viability, how these impact
therisk profile, performance and viability of the Group and
anyspecific mitigating or remedial actions necessary.
For further details of information relevant to the directors,
assessment can be found in the following sections of this
Annual Report:
• the Group’s Business model (pages 10 to 11) and Strategy
(pages 9)
• the Group’s current position and prospects including
factorslikely to affect future results and development,
together with a description of financial and funding
positions are described in the client segment reviews
(pages22 to 31).
An update on the key risk themes of the Group is discussed
inthe Group Chief Risk Officer’s review on pages 42 to 49,
andthe following sections of this Annual Report:
– The BRC section of the Directors’ report (pages 166 to171)
– The Group’s Topical and Emerging Risks sets out
thekeyexternal factors that could impact the Group
inthecoming year (pages 45 to 49)
– The Group’s Enterprise Risk Management Framework
details how the Group identifies, manages and governs
risk (pages 220 to 225)
– The Group’s Risk profile provides an analysis of our risk
exposures across all major risk types (page 226 to 232)
– The capital position of the Group, regulatory
development and the approach to management and
allocation of capital are set out in the Capital review
(pages 303 to 308).
Having considered all the factors outlined above, thedirectors
confirm that they have a reasonable expectation that the
Group will be able to continue inoperation and meet its
liabilities as they fall due over the period of the assessment
upto 24 February 2029.
Our Strategic report from pages 1 to 52 has been reviewed
andapproved by the Board.
Bill Winters, CBE
Group Chief Executive
24 February 2026
Viability statement
Standard Chartered | Annual Report 202552
In this section
54 Financial summary
62 Underlying versus reported results reconciliation
65 Alternative performance measures
Financial
review
Case study
Partnering on AI
and cross-border
services with
Alibaba
In July 2025, we signed a strategic partnership with Alibaba
Group to increase the use of AI across our business.
Under the agreement, the Bank will deploy Alibaba Cloud AI
tech in client service, sales intelligence, risk management and
compliance functions, while supporting workforce upskilling
through training programmes.
In turn, we will provide a comprehensive range of banking
services to Alibaba Group, from supply chain financing
support to cross-border fund management solutions.
Read more: sc.com/alibaba
Annual Report 2025 | Standard Chartered 53
Financial review
Financial summary
Statement of results
2025
$million
2024
$million
Change
1
%
Underlying performance
Operating income 20,894 19,696 6
Operating expenses (12,347) (11,790) (5)
Credit impairment (676) (557) (21)
Other impairment (42) (588) 93
Profit from associates and joint ventures 71 50 42
Profit before taxation 7,900 6,811 16
Profit attributable to ordinary shareholders² 5,360 4,276 25
Return on ordinary shareholders’ tangible equity (%) 14.7 11.7 300bps
Cost-to-income ratio (%) 59.1 59.9 80bps
Reported performance
7
Operating income 20,942 19,543 7
Operating expenses (13,304) (12,502) (6)
Credit impairment (672) (547) (23)
Goodwill & other impairment (65) (588) 89
Profit from associates and joint ventures 62 108 (43)
Profit before taxation 6,963 6,014 16
Taxation (1,866) (1,972) 5
Profit for the period 5,097 4,042 26
Profit attributable to parent company shareholders 5,085 4,050 26
Profit attributable to ordinary shareholders
2
4,558 3,593 27
Return on ordinary shareholders’ tangible equity (%) 11.9 9.7 220bps
Cost-to-income ratio (%) 63.5 64.0 50bps
Net interest margin (%)
6,9
2.03 2.06 (3)bps
Balance sheet and capital
Total assets 919,955 849,688 8
Total equity 54,586 51,284 6
Average tangible equity attributable to ordinary shareholders
2
38,242 36,876 4
Loans and advances to customers 286,788 281,032 2
Customer accounts 530,161 464,489 14
Risk-weighted assets 258,031 247,065 4
Total capital 53,227 53,091 –
Total capital ratio (%) 20.6 21.5 (86)bps
Common Equity Tier 1 36,440 35,190 4
Common Equity Tier 1 ratio (%) 14.1 14.2 (12)bps
Advances-to-deposits ratio (%)
3
51.4 53.3 (190)bps
Liquidity coverage ratio (%) 155.4 138.2 1720bps
UK leverage ratio (%) 4.7 4.8 (11)bps
Cents Cents Change¹
Information per ordinary share
8
Earnings per share
4
– underlying 229.7 168.1 61.6
– reported 195.4 141.3 54.1
Net asset value per share
5
2,007 1,781 226
Tangible net asset value per share
5
1,730 1,541 189
Number of ordinary shares at period end (millions) 2,247 2,408 (7)
1 Variance is better/(worse) other than assets, liabilities and risk-weighted assets. Change is percentage points difference between two points rather than percentage change for total capital
ratio (%), Common Equity Tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio (%), liquidity coverage ratio (%), leverage ratio (%), cost-to-income ratio (%) and return on ordinary
shareholders’ tangible equity (%).
2 Profit/(loss) attributable to ordinary shareholders is after the deduction of dividends payable to the holders of non-cumulative redeemable preference shares and Additional Tier 1 securities
classified as equity.
3 When calculating this ratio, total loans and advances to customers excludes reverse repurchase agreements and other similar secured lending, excludes approved balances held with central
banks, confirmed as repayable at the point of stress and includes loans and advances to customers held at fair value through profit andloss. Total customer accounts include customer accounts
held at fair value through profit or loss.
4 Represents the underlying or reported earnings divided by the basic weighted average number of shares.
5 Calculated on period end net asset value, tangible net asset value and number of shares.
6 Net interest margin is calculated as adjusted net interest income divided by average interest-earning assets, annualised.
7 Reported performance/results within this annual report means amounts reported under UK-adopted International Accounting Standards and International Financial Reporting Standards.
8 Change is cents difference between the two periods for earnings per share, net asset value per share and tangible net asset value per share. Number of ordinary shares at period end
ispercentage difference between the two periods.
9 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 NII.
Standard Chartered | Annual Report 202554
Operating income by product
2025
$million
2024
1
$million
Change
%
Constant currency
change
2
%
Transaction Services 6,005 6,434 (7) (7)
Payments & Liquidity 4,155 4,605 (10) (10)
Securities & Prime Services 648 611 6 7
Trade & Working Capital 1,202 1,218 (1) (1)
Global Banking 2,229 1,935 15 15
Lending & Financial Solutions 1,905 1,677 14 13
Capital Markets & Advisory 324 258 26 26
Global Markets 3,863 3,450 12 12
Macro Trading 3,116 2,852 9 9
Credit Trading 753 644 17 17
Valuation & Other Adj (6) (46) 87 87
Wealth Solutions 3,086 2,490 24 24
Investment Products 2,347 1,827 28 28
Bancassurance 739 663 11 12
Deposits & Mortgages 4,080 4,170 (2) (2)
CCPL & Other Unsecured Lending 1,080 1,081 – –
Ventures 415 183 127 125
Digital Banks 195 142 37 36
SCV 220 41 nm nm
Treasury & Other 136 (47) nm nm
Total underlying operating income 20,894 19,696 6 6
1 Products 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 income.
2 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods.
The operating income by product commentary that follows
ison an underlying basis and comparisons are made to the
equivalent period in 2024 on a constant currency basis, unless
otherwise stated. 2024 included items totalling $295 million
(2025: $1 million loss) relating to gains on revaluation of
FXpositions in Egypt and a hyperinflationary accounting
adjustment in Ghana (the notable items).
Transaction Services income decreased 7 per cent as growth
in Securities & Prime Services was more than offset by lower
Payments & Liquidity and Trade & Working Capital income.
Payments & Liquidity income decreased 10 per cent, driven
bythe impact of lower interest rates and margin compression,
albeit passthrough rates continued to be tightly managed
and there was strong growth in balances. Securities & Prime
Services income grew 7 per cent due to higher fee from
increase in custody balances. Trade & Working Capital
income was down 1 per cent as growth in fees was offset
bylower average volumes and margin compression.
Global Banking income increased 15 per cent as Lending
&Financial Solutions grew 13 per cent from strong pipeline
execution which led to higher origination and distribution
volumes and increased carry income. Capital Market &
Advisory income was up 26 per cent on the back of increased
bond fees and Mergers & Acquisitions transactions.
Global Markets income increased 12 per cent driven by
continued strong growth in flow income which grew 15 per
cent primarily from Financial Institutions clients and increased
Rates and Credit trading volumes. Episodic income grew
3percent from higher macro trading income.
Wealth Solutions income was up 24 per cent, driven by a 28
per cent increase in Investment Products income and 12 per
cent increase in Bancassurance. This was driven by continued
momentum in affluent new-to-bank onboarding, with
275,000 clients onboarded in 2025, and $52 billion of affluent
net new money, equivalent to 14 per cent growth of assets
under management.
Deposits & Mortgages income decreased 2 per cent.
Thebenefit from higher deposit volumes and proactive
pricing actions was more than offset by the impact of lower
interest rates, while Mortgages income increased year-on
year supported by margin expansion from lower funding
costand higher volumes in a few select markets.
CCPL & Other Unsecured Lending income remained flat as
an increase in margins was partly offset by lower volumes
resulting from portfolio optimisation actions.
Ventures income more than doubled year-on year. Digital
Banks income was up $53 million driven by higher Deposit
volumes and fee income as they continue to grow their
customer base. SCV income was up $179 million mainly
froma$238 million gain from the Solv India transaction
(seepage 340).
Treasury & other performance improved by $183 million
asthe benefit in Treasury from the repricing of longer
datedassets was partly offset by the non-repeat of the
notableitems.
Annual Report 2025 | Standard Chartered 55
Financial review
Financial summary
Profit before tax by client segment
2025
$million
2024
1
$million
Change
%
Constant currency
change
2
%
Corporate & Investment Banking
1
5,875 5,431 8 9
Wealth & Retail Banking
1
2,883 2,537 14 14
Ventures (167) (385) 57 57
Central & other items
1
(691) (772) 10 14
Underlying profit before taxation 7,900 6,811 16 18
1 Underlying profit before taxation has been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to reflect
thereallocation of Treasury income and certain costs across segments.
2 Comparisons presented on the basis of the current period’s transactional currency rate, ensuring like-for-like currency rates between the two periods.
The client segment commentary that follows is on an
underlying basis and comparisons are made to the
equivalent period in 2024 on a constant currency basis, unless
otherwise stated. 2024 included items totalling $295 million
(2025: $1 million loss) relating to gains on revaluation of FX
positions in Egypt and a hyperinflationary accounting
adjustment in Ghana (the notable items).
Corporate & Investment Banking (CIB) profit before taxation
increased 9 per cent. Income grew 4 per cent with a record
performance in Global Markets and strong double-digit
growth in Global Banking partly offset by lower Transaction
Services. Expenses were 2 per cent higher, mainly from
investments in business initiatives, while credit impairment
was a net charge of $4 million compared to a $120 million net
release in 2024. The other impairment decreased by
$284 million year-on year due to non-repeat of software
asset write-offs.
Wealth & Retail Banking (WRB) profit before taxation
increased 14 per cent. Income grew by 6 per cent, driven by a
record performance in Wealth Solutions. Expenses increased
5 per cent, mainly from increased investment spend on business
initiatives including strategic hiring of relationship managers.
The credit impairment charge of $595 million was down
$28 million from portfolio optimisation actions across in
unsecured lending portfolios. The other impairment charge
decreased $108 million compared to 2024 due to non-repeat
of software asset write-offs.
Ventures loss before tax decreased by $218 million to
$167 million mainly from higher income of $232 million. Digital
Banks income increased by $53 million driven by continued
growth in customers and volumes. while SCV income
increased by $179 million supported by a $238 million gain
from the Solv India transaction. Expenses remained flat as
costs were well controlled, while the $59 million credit
impairment charge was down $14 million year-on-year as
delinquency rates have improved in Mox.
Central & other items (C&O) loss before tax improved by
$81 million year-on year. Treasury benefited from the repricing
of longer dated assets; this was in part offset by the non-
repeat of the notable items. Other impairments were lower
by $159 million reflecting non-repeat of prior year software
asset write-offs.
Adjusted net interest income and margin
2025
$million
2024
$million
Change
1
%
Adjusted net interest income
2
11,184 11,112 1
Average interest-earning assets 550,930 539,338 2
Average interest-bearing liabilities 581,911 539,787 8
Gross yield (%)
3
4.60 5.29 (69)
Rate paid (%)
3
2.43 3.22 79
Net yield (%)
3
2.17 2.07 10
Net interest margin (%)
3,4
2.03 2.06 (3)
1 Variance is better/(worse), other than assets and liabilities which is increase/(decrease).
2 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 NII. Adjusted net interest income is reported net interest income less trading book funding cost, Treasury currency
management activities, cash collateral and prime services.
3 Change is the basis points (bps) difference between the two periods rather than the percentage change. Net interest margin has been re-presented due to the
revision to Adjusted net interest income as outlined in footnote 2.
4 Adjusted net interest income divided by average interest-earning assets, annualised.
Standard Chartered | Annual Report 202556
Credit risk summary
Income Statement (Underlying view)
2025
$million
2024
$million
Change
1
%
Total credit impairment charge
2
676 557 21
Of which stage 1 and 2
2
296 371 (20)
Of which stage 3
2
380 186 104
1 Variance is increase/(decrease) comparing current reporting period to prior reporting period.
2 Refer to Credit Impairment charge table in the Risk review on page 254 for reconciliation from underlying to reported credit impairment.
Balance sheet
2025
$million
2024
$million
Change
1
%
Gross loans and advances to customers
2
290,849 285,936 2
Of which stage 1 275,062 269,102 2
Of which stage 2 9,823 10,631 (8)
Of which stage 3 5,964 6,203 (4)
Expected credit loss provisions (4,061) (4,904) (17)
Of which stage 1 (528) (483) 9
Of which stage 2 (446) (473) (6)
Of which stage 3 (3,087) (3,948) (22)
Net loans and advances to customers 286,788 281,032 2
Of which stage 1 274,534 268,619 2
Of which stage 2 9,377 10,158 (8)
Of which stage 3 2,877 2,255 28
Cover ratio of stage 3 before/after collateral (%)
3
52 / 68 64 / 78 (12) / (10)
Credit grade 12 accounts ($million) 1,111 969 15
Early alerts ($million)
5
4,303 5,559 (23)
Investment grade corporate exposures (%)
3
74 74 –
Aggregate top 20 corporate exposures as a percentage of Tier 1 capital
3,4
64 61 3
1 Variance is increase/(decrease) comparing current reporting period to prior reporting period.
2 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $8,242 million (31 December 2024: $9,660 million).
3 Change is the percentage points difference between the two points rather than the percentage change.
4 Excludes repurchase and reverse repurchase agreements.
5 Includes non-purely precautionary early alert balances.
Adjusted net interest income was up 1 per cent compared
to2024 as the benefit from higher volumes and improved
balance sheet mix was partly offset by the impact of lower
rates and margins. Net interest margin was 3 basis points
lower as the impact of falling rates and margin compression
was partially offset by better asset and deposit mix.
Average interest-earning assets were up 2 per cent
compared to 2024 driven by growth in Global Banking,
Mortgages and Wealth Lending partially offset by reduction
in Treasury assets and Trade and Working Capital. Gross
yields decreased 69 basis points compared to the prior year
due to the fall in benchmark interest rates. Average interest-
bearing liabilities increased 8 per cent on the prior year from
strong growth in customer accounts, primarily in WRB Term
and CASA deposits. The rate paid on liabilities decreased
79basis points compared with the average in the prior year,
reflecting the impact of interest rate movements and
improved liability mix.
Annual Report 2025 | Standard Chartered 57
Financial review
Financial summary
Asset quality remained resilient during the year, with an
improvement in a number of underlying credit metrics.
TheGroup continues to actively manage the credit portfolio
while remaining alert to a volatile and challenging external
environment including increased geopolitical tensions and
evolving policy changes which may lead to idiosyncratic
stress in a select number of geographies and industry sectors.
The credit impairment charge of $676 million was up
$119 million year-on-year, of which $95 million relates to debt
securities which were a net release of $57 million in 2024 and
a charge of $38 million in 2025. The loan loss rate of 19 basis
points, which by definition excludes debt securities, remained
flat year-on year.
WRB charges of $595 million were $28 million lower reflecting
the impact of portfolio optimisation actions. The $59 million
charge in Ventures was down $14 million year-on-year
asdelinquency rates improved in Mox following a change
inunderlying credit criteria. There was net charge in CIB
of$4 million, with a non-repeat of prior year net releases.
Duringthe year the non-linearity impact increased
by$70 million to $113 million. This reflects an increased
probability weighting of the two downside scenarios from 32
per cent as at 31 December 2024 to 41 per cent while the base
forecast probability weighting reduced from 68 per cent as
at31 December 2024 to 59 per cent as at 31 December 2025.
TheGroup retains a China commercial real estate (CRE)
management overlay of $36 million and a $47 million overlay
for clients who have exposure to the Hong Kong CRE sector.
During 2025 the CRE overlays reduced by $11 million for Hong
Kong and $34 million for China primarily driven by exposure
movements and repayments.
Gross stage 3 loans and advances to customers of $6 billion
were 4 per cent lower year-on-year as repayments, client
upgrades and write-offs more than offset new inflows.
Credit-impaired loans represented 2.1 per cent of gross
loansand advances, down from 2.2 per cent in the prior year.
Thestage 3 cover ratio before collateral of 52 per cent
decreased by 12percentage points mainly due to restructuring
and lower provisions on inflows as they are covered by
creditmitigants. The cover ratio post collateral at 68 per cent
decreased 10 percentage points as some of the stage 3 inflows
are now being covered by guarantees and credit insurance
which arenot classified as tangible collateral.
Early alert exposures at $4.3 billion reduced by $1.3 billion
year-on-year primarily from migrations into credit grade 12,
while credit grade 12 balances remained around $1 billion as
new inflows were largely offset by sovereign client upgrades.
The proportion of investment grade corporate exposures
of74 per cent was broadly stable year-on-year.
Restructuring, FFG, DVA and Other items
2025 2024
Restructuring
$million
FFG
$million
DVA
$million
Net loss on
businesses
disposed of/
held for sale
$million
Other items
$million
Restructuring
1
$million
FFG
1
$million
DVA
$million
Net loss on
businesses
disposed of/
held for sale
2
$million
Other items
3
$million
Operating income (24) – (31) (10) 113 103 – (24) (232) –
Operating
expenses (289) (510) – – (158) (456) (156) – – (100)
Credit impairment 4 – – – – 10 – – – –
Other impairment (2) (21) – – – – – – – –
Profit from
associates and
joint ventures (9) – – – – 58 – – – –
Profit/(loss)
beforetaxation (320) (531) (31) (10) (45) (285) (156) (24) (232) (100)
1 FFG (Fit for Growth) charge previously reported within Restructuring has been re-presented as a separate item.
2 Net loss on businesses disposed of/ held for sale 2024 includes $172 million primarily relating to recycling of FX translation losses from reserves into P&L on the sale
of Zimbabwe, $26 million loss on sale of Angola, $19 million loss on Sierra Leone and $15 million loss on the Aviation business disposal.
3 Other items 2024 include $100 million charge relating to Korea equity-linked securities (ELS) portfolio.
Standard Chartered | Annual Report 202558
The Group’s reported performance is adjusted for profits or
losses of a capital nature, amounts consequent to investment
transactions driven by strategic intent, other infrequent and/
or exceptional transactions that are significant or material
inthe context of the Group’s normal business earnings for the
period and items which management and investors would
ordinarily identify separately when assessing underlying
performance period-by period.
Restructuring charges of $320 million, reflect the impact of
actions to transform the organisation to improve productivity,
primarily additional redundancy charges, simplifying
technology platforms and business exits.
During 2025 charges related to the Fit for Growth programme
totalled $531 million. Movements in the Debit Valuation
Adjustment (DVA) were a negative $31 million driven by
thetightening of the Group’s asset swap spreads.
Other items charge of $45 million reflect mainly a $113 million
gains on the sale of property, charges booked for the
participation in a compensation scheme recommended by
the Korean Financial Supervisory Service and the settlement
of a legal case relating to section 90A of the UK Financial
Service Market Act.
Balance sheet and liquidity
2025
$million
2024
$million
Increase/
(Decrease)
$million
Increase/
(Decrease)
%
Assets
Loans and advances to banks 43,901 43,593 308 1
Loans and advances to customers 286,788 281,032 5,756 2
Other assets 589,266 525,063 64,203 12
Total assets 919,955 849,688 70,267 8
Liabilities
Deposits by banks 30,846 25,400 5,446 21
Customer accounts 530,161 464,489 65,672 14
Other liabilities 304,362 308,515 (4,153) (1)
Total liabilities 865,369 798,404 66,965 8
Equity 54,586 51,284 3,302 6
Total equity and liabilities 919,955 849,688 70,267 8
Advances-to-deposits ratio (%)
1
51.4 53.3
Liquidity coverage ratio (%) 155 138
1 The Group excludes $8,474 million held with central banks (31 December 2024: $19,187 million) that has been confirmed as repayable at the point of stress.
Advances exclude repurchase agreement and other similar secured lending of $8,243 million (31 December 2024: $9,660 million) and include loans and advances
tocustomers held at fair value through profit or loss of $12,355 million (31 December 2024: $7,084 million). Deposits include customer accounts held at fair value
through profit or loss of $19,414 million (31 December 2024: $21,772 million).
Annual Report 2025 | Standard Chartered 59
Financial review
Total risk-weighted assets (RWA) of $258 billion increased
$11 billion or 4 per cent in comparison to 31 December 2024.
Credit risk RWA increased by $2.8 billion to $192.1 billion.
Thiswas driven by an increase of $6.4 billion in asset growth,
quality and mix, a $1.0 billion increase in derivatives and
a$3.9 billion increases from foreign currency translation.
Theincrease was partly offset by a decrease of $7.4 billion
from optimisation actions and $1.1 billion reduction from
model changes.
Operational risk RWA increased by $5.7 billion to $35.2 billion
driven by an increase in average income as measured over
arolling three-year time horizon. 2025 includes a $3.1 billion
increases relating to average income for the years 2022
to2024 and a $2.6 billion increase relating to the average
income for the years 2023 to 2025 as the Group is now
performing the annual operational risk RWA computation
inthe fourth quarter of the current year rather than the first
quarter of the following year.
Market risk RWA increased by $2.4 billion to $30.7 billion
driven mainly by increase in specific interest rate risk from
higher credit trading.
Financial summary
The Group’s balance sheet remains strong, liquid and
welldiversified:
Loans and advances (L&A) to customers increased 2 per cent,
or $6 billion, to $287 billion as at 31 December 2025. Excluding
a $7 billion increase from currency translation and the
$14 billion reduction in Treasury and securities backed loans
held to collect, the underlying growth was $13 billion or 5 per
cent. The underlying growth is primarily driven by Global
Banking in CIB and Wealth Lending and Mortgages in WRB.
Customer accounts of $530 billion increased by $66 billion
or14 per cent. Excluding a $8 billion increase from currency
translation, customer accounts increased by $58 billion, or
12per cent. This was primarily driven by a $31 billion increase
inWRB term and CASA deposits from targeted campaigns
and a focus on attracting new to bank affluent clients and
net new money. There was also a $13 billion increase in
Transaction Services from CASA inflows and a $7 billion
increase in corporate term deposits from Treasury
management activities. Deposit from banks increased by
21per cent reflecting balance sheet management activities
across a number of markets.
Other assets increased by $64 billion from 31 December 2024,
with a $14 billion increase in cash and balances with central
banks, a $22 billion increase in investment securities primarily
debt securities, a $22 billion increase in non-financial assets
mainly an increase in precious metals inventory and price,
and a $18 billion increase in financial assets held at fair value
through profit or loss. The increases were partly offset by
a$16 billion reduction in derivative financial instruments.
Other liabilities decreased 1 per cent or $4 billion from
31 December 2024, with a $14 billion decrease in derivative
balances partly offset by an increase of $4 billion in financial
liabilities held at fair value through profit and loss and a
$8 billion increase in debt securities in issue.
The advances-to-deposits ratio dropped around 2 percentage
points year-on-year to 51.4 per cent. The point-in-time LCR
of155 per cent increased 17 percentage points year-on-year
due to balance sheet growth and ongoing Treasury liquidity
management actions. It remains well above the minimum
regulatory requirement of 100 per cent.
Risk-weighted assets
2025
$million
2024
1
$million
Change
1
$million
Change
1
%
By risk type
Credit risk 192,145 189,303 2,842 2
Operational risk 35,223 29,479 5,744 19
Market risk 30,663 28,283 2,380 8
Total RWAs 258,031 247,065 10,966 4
1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods.
Standard Chartered | Annual Report 202560
Capital base and ratios
2025
$million
2024
$million
Change
1
$million
Change
1
%
CET1 capital 36,440 35,190 1,250 4
Additional Tier 1 capital (AT1) 7,509 6,482 1,027 16
Tier 1 capital 43,949 41,672 2,277 5
Tier 2 capital 9,278 11,419 (2,141) (19)
Total capital 53,227 53,091 136 –
CET1 capital ratio (%)
2
14.1 14.2 (12)
Total capital ratio (%)
2
20.6 21.5 (86)
Leverage ratio (%)
2
4.7 4.8 (11)
1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods.
2 Change is percentage points difference between two points rather than percentage change.
The Group’s CET1 ratio of 14.1 per cent was 12 basis points
lower year-on-year and is 3.9 percentage points above the
Group’s latest regulatory minimum requirement. The Group’s
Pillar 2A reduced in 2025 post a supervisory review resulting
ina 22-basis points reduction in the Group’s CET1 requirement.
There was 206 basis points of CET1 accretion from underlying
profits, and a further 19 basis points uplift primarily from fair
value gains on other comprehensive income, FX, software
intangibles and regulatory capital adjustments. This was
partly offset by 46 basis points drop from an increase in RWAs.
The Group completed the $1.5 billion share buyback
programme announced with the full year 2024 results
on30
th
July 2025, purchasing 98.2 million shares. The Group
subsequently announced a $1.3 billion share buyback
programme on 31 July 2025 concurrently with the half year
2025 results, and as of 31 December 2025, the Group had
spent $1.1 billion purchasing 53.1 million ordinary shares. Whilst
the $1.3 billion share buyback was completed on 26 January
2026 purchasing 62.2 million shares, the entire $1.3 billion is
deducted from CET1 in the reporting period. The 2025 share
buybacks reduced the CET1 ratio by 113 basis points.
The Board has recommended a final dividend of 49 cents
pershare or $1,092 million resulting in a total 2025 ordinary
dividend of 61 cents a share or $1.38 billion. This, combined
with the payments due to AT1 and preference shareholders
cost approximately 78 basis points.
The Board has announced a share buyback for up to
amaximum consideration of $1.5 billion to further reduce
thenumber of ordinary shares in issue by cancelling the
repurchased shares. The terms of the buyback will be
published, and the programme will start shortly and
isexpected to reduce the Group’s CET1 ratio in the first
quarterof 2026 by58basis points.
The Group’s UK leverage ratio of 4.7 per cent remains
significantly above its minimum requirement of 3.7 per cent.
Annual Report 2025 | Standard Chartered 61
Financial review
Underlying versus reported
resultsreconciliations
Reconciliations between underlying and reported results are set out in the tables below:
Operating income by client segment
Reconciliation of underlying versus reported operating income by client segment set out in note 2 Segmental information
onpage 336.
Net interest income and Non NII
2025 2024
Underlying
$million
Restructuring
$million
Adjustment for
Trading book
funding cost
andOthers
$million
Reported
$million
Underlying
1
$million
Restructuring
$million
Adjustment for
Trading book
funding cost
andOthers
1
$million
Reported
$million
Net interest income 11,185 (1) (5,229) 5,955 11,096 16 (4,746) 6,366
Non NII 9,709 49 5,229 14,987 8,600 (169) 4,746 13,177
Total income 20,894 48 – 20,942 19,696 (153) – 19,543
1 Underlying 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 Underlying Non NII.
Profit before taxation (PBT)
Reconciliation of underlying versus reported Profit/(loss) before taxation is set out in note 2 Segmental information on page 335.
Profit before taxation (PBT) by client segment
Reconciliation of underlying versus reported Profit/(loss) before taxation by client segment set out in note 2 Segmental
information on page 336.
Return on tangible equity (RoTE)
2025
$million
2024
$million
Average parent company shareholders’ equity 45,755 44,478
Less: Average preference share capital and share premium (1,494) (1,494)
Less: Average intangible assets (6,019) (6,108)
Average ordinary shareholders’ tangible equity 38,242 36,876
Profit for the year attributable to equity holders 5,097 4,042
Non-controlling interests (12) 8
Dividend payable on preference shares and AT1 classified as equity (527) (457)
Profit for the year attributable to ordinary shareholders 4,558 3,593
Items normalised
1
:
Restructuring 320 285
FFG 531 156
DVA 31 24
Ventures FVOCI unrealised gains net of tax 269 39
Net loss on sale of businesses 10 232
Other items 45 100
Tax on normalised items (135) (114)
Underlying profit for the year attributable to ordinary shareholders 5,629 4,315
Underlying Return on Tangible Equity (%) 14.7 11.7
Reported Return on Tangible Equity (%) 11.9 9.7
1 Refer to note 2 Segmental information on page 335.
Standard Chartered | Annual Report 202562
2025 2024
Corporate &
Investment
Banking
%
Wealth &
Retail
Banking
%
Ventures
%
Central &
other items
%
Total
%
Corporate &
Investment
Banking
%
Wealth &
Retail
Banking
%
Ventures
%
Central &
other items
%
Total
%
Underlying RoTE 15.8 25.5 nm (17.3) 14.7 14.9 20.7 nm (15.7) 11.7
Restructuring
1
Of which:
Income (0.1) – – (0.3) (0.1) 0.3 0.3 – 0.3 0.3
Of which:
Expenses (1.8) (5.4) nm (0.9) (2.5) (1.5) (2.8) nm (0.4) (1.7)
Of which: Credit
impairment – – – 0.1 – – – – – –
Of which: Other
impairment – (0.1) – (0.3) (0.1) – – – (0.2) –
Of which: Profit
from associates
and joint
ventures – – – – – 0.2 – nm – 0.2
DVA
1
(0.1) – – – (0.1) (0.1) – – – (0.1)
Net gain/(loss)
onbusinesses
disposed/held
forsale
1
– – – (0.3) – – – – (5.4) (0.6)
Other items
1
– – – 3.1 0.3 – (1.2) – – (0.3)
Ventures FVOCI
Unrealised
gains/(losses) – – nm – (0.7) – – nm – (0.1)
Tax on
normaliseditems 0.3 0.9 nm (0.6) 0.4 0.3 0.8 nm 0.1 0.3
Reported RoTE 14.1 20.9 nm (16.5) 11.9 14.1 17.8 nm (21.3) 9.7
1 Refer to note 2 Segmental information on page 336.
Net charge-off ratio
2025 2024
Credit impairment
(charge)/ releasefor
the year/period
$million
Net average
exposure
$million
Net Charge-off
Ratio
%
Credit impairment
(charge)/ releasefor
the year/ period
$million
Net average
exposure
$million
Net Charge-off
Ratio
%
Stage 1 41 314,590 (0.01) 22 314,092 (0.01)
Stage 2 (310) 11,871 2.61 (368) 10,176 3.62
Stage 3 (383) 2,266 16.90 (244) 2,550 9.57
Total exposure (652) 328,727 0.20 (590) 326,818 0.18
Annual Report 2025 | Standard Chartered 63
Financial review
Earnings per ordinary share (EPS)
2025
Underlying
$ million
Restructuring
1
$ million
FFG
1
$ million
DVA
1
$ million
Net loss on sale
of businesses
1
$ million
Other items
1
$ million
Tax on
normalised
items
$ million
Reported
$ million
Profit/(loss) for the
yearattributable to
ordinary shareholders 5,360 (320) (531) (31) (10) (45) 135 4,558
Basic – Weighted
average number
ofshares (millions) 2,333 2,333
Basic earnings per
ordinary share (cents) 229.7 195.4
2024
Underlying
$ million
Restructuring
1
$ million
FFG
1
$ million
DVA
1
$ million
Net loss on sale
of businesses
1
$ million
Other items
1
$ million
Tax on
normalised
items
$ million
Reported
$ million
Profit/(loss) for the
yearattributable to
ordinary shareholders 4,276 (285) (156) (24) (232) (100) 114 3,593
Basic – Weighted
average number
ofshares (millions) 2,543 2,543
Basic earnings per
ordinary share (cents) 168.1 141.3
1 Refer to note 2 Segmental information on page 336.
Underlying versus reported resultsreconciliations
Standard Chartered | Annual Report 202564
Alternative performance measures
Advances-to-deposits/customer advances-to-deposits
(ADR)ratio: The ratio of total loans and advances to
customers relative to total customer accounts, excluding
approved balances held with central banks, confirmed as
repayable atthe point of stress. A low advances-to-deposits
ratio demonstrates that customer accounts exceed customer
loans resulting from emphasis placed on generating a high
level ofstable funding from customers.
Average interest earning balance: Daily average of the
interest earning assets and interest-bearing liabilities balances
excluding the daily average cash collateral balances in other
assets and other liabilities that are related to the Global
Markets trading book.
Constant currency basis: A performance measure on a
constant currency basis is presented such that comparative
periods are adjusted for the current year’s functional currency
rate. The following balances are presented on a constant
currency basis when described as such: 1. Operating income,
2.Operating expenses, 3. Profit before tax and 4. RWAs or
risk-weighted assets.
Cost-to-income ratio (CIR): The proportion of total operating
expenses to total operating income.
Cover ratio: The ratio of impairment provisions for each stage
to the gross loan exposure for each stage.
Cover ratio after collateral/cover ratio including collateral:
The ratio of impairment provisions for stage 3 loans and
realisable value of collateral held against these non-performing
loan exposures to the gross loan exposure of stage 3 loans.
Gross yield: Reported interest income divided by average
interest earning assets.
Income return on risk weighted assets (IRoRWA): Annualised
Income excluding Debit Valuation Adjustment as a percentage
of Average RWA.
Jaws: The difference between the rates of change in revenue
and operating expenses. Positive jaws occurs when the
percentage change in revenue is higher than, or less negative
than, the corresponding rate for operating expenses.
Loan loss rate: Credit Impairment Profit & Loss on Loans
&Advances to Banks & Customers over Gross Average Loans
andAdvances to Banks and Customers excluding FVTPLloans.
Net charge-off ratio: The ratio of net credit impairment charge
or release to average outstanding net loans and advances.
Net tangible asset value per share: Ratio of net tangible
assets(total tangible assets less total liabilities) to the number
of ordinary shares outstanding at the end of a reporting period.
Net yield: Gross yield on average assets less rate paid
onaverage liabilities.
NIM or Net interest margin: Reported net interest income
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.
Non NII: Reported Non NII is a sum of net fees and commission,
net trading income and other operating income
Rate paid: Reported interest expense adjusted for interest
expense incurred on amortised cost liabilities used to fund
financial instruments held at fair value through profit or loss,
divided by average interest-bearing liabilities.
RoTE or Return on ordinary shareholders’ tangible equity:
Theratio of the current year’s profit available for distribution
toordinary shareholders to the average tangible equity, being
ordinary shareholders’ equity less the average intangible assets
for the reporting period. Where a target RoTE is stated, this
isbased on profit and equity expectations for future periods.
TSR or Total shareholder return: The total return of the Group’s
equity (share price growth and dividends) to investors.
Underlying net interest income: Reported net interest
incomenormalised to an underlying basis adjusted for trading
book funding cost, treasury currency management activities,
and financial guarantee fees oninterest earning assets. In prior
periods, underlying net interest income included treasury
currency management activities.
Underlying/Normalised: A performance measure is described
as underlying/normalised if the statutory result has been
adjusted for restructuring and other items representing profits
or losses of a capital nature; DVA; amounts consequent to
investment transactions driven by strategic intent, excluding
amounts consequent to Ventures transactions, as these are
considered part of the Group’s ordinary course of business;
andother infrequent and/or exceptional transactions that
aresignificant or material in the context of the Group’s normal
business earnings for the period, and items which management
and investors would ordinarily identify separately when assessing
performance period-by-period. Restructuring includes impacts
to profit or loss from businesses that have been disclosed as no
longer part of the Group’s ongoing business, redundancy costs,
costs of closure or relocation of business locations, impairments
of assets and other costs which are not related to the Group’s
ongoing business. Restructuring in this context is not the same
as a restructuring provision as defined in IAS 37.
A reconciliation between underlying/normalised and statutory
performance is contained in Note 2 to the financial statements.
The following balances and measures are presented on an
underlying basis when described as such: 1. Operating income,
2. Operating expenses, 3. Profit before tax and 4. Earnings per
share (basic and diluted) 5. CIR 6. Jaws and 7. RoTE.
Underlying Non NII: Reported Non NII normalised to an
underlying basis adjusted for trading book funding cost,
treasury currency management activities, and financial
guarantee fees on interest earning assets. In prior periods,
Underlying Non NII did not include treasury currency
management activities.
Underlying RoTE: The ratio of the current year’s underlying
profit attributable to ordinary shareholders plus fair value
onOCI equity movement relating to Ventures segment to the
weighted average tangible equity, being ordinary shareholders’
equity less the intangible assets for the reporting period.
An alternative performance measure is a financial measure ofhistorical or future financial
performance, financial position, orcash flows, other than a financial measure defined or specified
inthe applicable financial reporting framework. The following are key alternative performance
measures used by the Group to assess financial performance and financial position.
Annual Report 2025 | Standard Chartered 65
Financial review
In this section
68 Chief Sustainability Officer’s review
75 Our approach to sustainability
83 Sustainable finance
90 Climate
111 Nature
113 Social impact
116 Managing Environmental and Social Risk
118 Integrity, conduct and ethics
122 Sustainability governance
Sustainability
review
Case study
Helping Ghana
cook cleaner with
the World Bank
In December 2025, we closed a $200 million
CleanCooking Outcome Bond issued by the World
Bank, unlocking $30.5 million in climate finance
forGhana.
The bond, which will distribute415,000 stoves, aims to make
cleaner cooking accessible to 1.3 million people and reduce
greenhouse gas emissions bymore than 1.8 million tons
ofcarbon dioxide equivalent.
The transaction shows how carbon finance can bedeployed
at scale to reduce carbon emissions inAfrica and other
emerging markets.
Read more: sc.com/cleancooking
Standard Chartered | Annual Report 202566
The Sustainability review provides information on the Group’s approach to sustainability, related
governancestructures, how we manage environmental, social and climate risk, and mobilise sustainable
finance to help clients transition and support sustainable, inclusive growth in our markets.
Sustainability is an area of strategic focus for us, and we aim to integrate it across our business.
Asaresult,sustainability information can be found throughout this Annual Report and across the suite
ofsustainability-related reports on our website at sc.com/sustainabilitylibrary.
This section is designed to address the topics that could have a material (positive or negative) impact on society,
nature or the climate. We describe how we have determined these topics under Materiality on page 72.
Further disclosures are available at sc.com/sustainabilitylibrary
Content map of Annual Report sustainability-related disclosures
Disclosures Page
Strategic report
Key performance indicators 12 – 13
Stakeholder engagement 37 – 41
Non-financial and sustainability information statement 50
Sustainability review
Our approach to sustainability 75 – 82
Sustainable finance 83 – 89
Climate 90 – 110
Nature 111 – 112
Social impact 113 – 115
Managing Environmental and Social Risk 116 – 117
Integrity, conduct and ethics 118 – 121
Sustainability-related governance 122 – 128
Directors’ report
Culture and Sustainability Committee report 176 – 179
Directors’ remuneration report 180 – 206
ESG disclosures 208
Streamlined Energy and Carbon Reporting (SECR) disclosure 208 – 209
Risk review and Capital review
High carbon sectors 260 – 262
Environmental, Social and Governance and Reputational (ESGR) risk 287 – 302
Financial statements
Note 1. Accounting policies: Climate change impact on the Group’s balance sheet 332 – 333
Supplementary information
Supplementary people information 444 – 449
Supplementary sustainability information 450 – 453
Sustainability Aspirations 454 – 457
Climate reporting index 458 – 465
Disclaimer
We report on ESG matters throughout this Annual Report,
inparticular in the following sections:
i Strategic report on pages 37 to 50
ii Directors’ report on pages 129 to 217
iii Sustainability review on pages 66 to 128
iv Risk review and Capital review on pages 287 to 302
v Supplementary sustainability information on pages
450to465
In this Sustainability review, we set out our approach
andprogressrelating to sustainability, and its content
issubjecttothe statements included in (1) the ‘Forward-
looking statements’ section; and (2) the ‘Basis of preparation
andcaution regarding data limitations’ section provided
under‘Important notices’ onpages 467 to 469.
Additional information can be accessed through our
suiteofsupporting sustainability reports and disclosures
at sc.com/sustainabilitylibrary.
Annual Report 2025 | Standard Chartered 67
Sustainability review
In 2025, we expanded the scope of our work in sustainability
innovation by establishing our fifth Innovation Hub, focused
on the circular economy. This reflects the growing appetite
across our markets for financial solutions that embrace
circular concepts, given that the circular economy is a
powerful framework for both sustainability-led competitive
differentiation and for business resilience – one that unlocks
new value chains, supports inclusive growth, creates value,
protects nature and supports business continuity in
aresource-constrained world.
Our sustainable finance activity underscores the commercial
opportunity the transition presents, with $1.07 billion
ofsustainable finance income generated in 2025, meaning
thatwe have exceeded our target of $1 billion in annual
sustainable finance income by 2025. We have also diversified
our sustainable finance revenue mix by increasing the
penetration of our core products across markets while
expanding our product offering suite. Alongside these
milestones, we have now mobilised $157 billion in sustainable
finance for our clients since January 2021 against our
$300 billion target by 2030 and in 2025 issued Standard
Chartered PLC’s first social bond.
Chief Sustainability Officer’s review
Across our markets, the unprecedented pace ofrenewables
adoption is evidence of a positive tipping point and in the
2025 World Energy Investment report
1
, the International
Energy Agency (IEA) highlighted that $2.2 trillion of
investment isnow going collectively towards the global
energy transition alone, with the rapid scaling of green
energy outpacing fossil fuels twofold.
I am also gratified to see increasing action and investment
towards climate adaptation, a subject thatStandard
Chartered has beenchampioning because ofthe
disproportionate effects thatourwarming planet has
onemerging markets.
The Chief Sustainability Officer (CSO) organisation was
established in 2022 to build on the Group’s long-standing
sustainability agenda. Since its creation, we have made
substantial progress against our four Sustainability Strategic
Pillars, which represent our near-term strategic focus.
Thisincludes the work we do to scale sustainable finance,
toembed sustainability across the organisation, deliver
againstour net zero roadmap, and leverage our thematic
Innovation Hubs.
1 World Energy Investment 2025, International Energy Agency.
The commercial imperative to finance
theworld’s sustainability transition is more
compelling than ever for those who
recognise the opportunity alongside the
value atstake that stems from inaction.
There is a determined momentum
todecarbonise on the path to energy
abundance and much of thismomentum
Ihave had the good fortune to witness
myself – driven byour core markets in Asia,
Africa and the Middle East.
Marisa Drew
Chief Sustainability Officer
Standard Chartered | Annual Report 202568
In addition, we have made strong headway on our net zero
pathways, standing firm behind the actions and targets
outlined in our Transition Plan. This includes delivering on our
commitment to be net zero in our own operations (Scope 1
and 2 emissions) by the end of 2025. For the first time, we
have also measured and disclosed the financed methane
emissions intensity associated with our upstream oil and
gasportfolio as we seek to show leadership in tackling
theseemissions, which have a strong contribution to global
warming. We have also strengthened client engagement
across our 12 high-emitting sectors, providing tailored
products and innovative financing solutions to help
accelerate their decarbonisation journeys.
Finally, as an early adopter of the Taskforce on Nature-related
Financial Disclosures (TNFD), we also published our first Nature
Report alongside our 2025 Annual Report. The Nature Report
outlines our approach to assessing, evaluating, understanding
and managing nature-related impacts, dependencies, risks
and opportunities across our CIB financing activities and
direct operations, as part of our initial step towards aligning
our reporting with the TNFD recommendations.
1 Values noted with a caret symbol (^) are subject to independent limited assurance by EY.
2 See pages 93–95 for details.
2025 highlights
$1.07bn^
sustainable finance income
generated in 2025, exceeding our
target of at least $1 billion annual
income by 2025
1
$157bn^
cumulative mobilisation of
sustainable finance from January
2021 to September 2025 against
ourcommitment to mobilise
$300 billion by 2030
€1bn
inaugural social bond issued
Achieved net zero in
ownoperations
(Scope 1 and 2 emissions)
2
Nature Report published
in line with our early adoption
oftheTNFD disclosure framework
Circular Economy
Innovation Hub
established
Our priorities for 2026 remain steadfast: to deliver on our
commitments, to support our clients in their transitions, and
tofoster innovation to drive sustainable and inclusive growth
across our markets. The progress detailed in this report
reflects not just what we have achieved to date, but our
ongoing determination to foster long-term value creation
across our markets.
Marisa Drew
Chief Sustainability Officer
Annual Report 2025 | Standard Chartered 69
Sustainability review
Our suite of sustainability-related
reports and disclosures
Report or disclosure Description
Assurance and
verificationreports
Independent assurance and verification reports by Ernst & Young LLP (EY), Global
Documentation Ltd and Schneider Electric over certain data points within this Annual
Report as detailed on page 74.
Code of Conduct and Ethics Primary tool through which we communicate our conduct expectations. It is designed
toguide colleagues through how to live our valued behaviours on a day-to-day basis,
whatever their business, function, geography, or role.
Country-by-Country
Disclosure
Provides tax information in accordance with the Capital Requirements
(Country-by-Country-Reporting) Regulations 2013.
Diversity, Equality and
Inclusion Impact Report
Includes gender and ethnicity pay gap assessment and the actions we have taken
tosupport a culture of inclusion.
Equator Principles reporting As a member since 2003, we report on how we apply the principles to ensure that the
projects we finance and advise on are developed in a socially responsible manner and
reflect sound environmental management practices.
Environmental and Social
RiskManagement Framework
Provides an overview of our approach to identifying, assessing, and managing the
environmental and social risks associated with our client relationships.
Environmental
ReportingCriteria
Sets out the principles and methodologies used to report our Scope 1, Scope 2 and Scope 3
supply chain greenhouse gas (GHG) emissions.
ESG data pack Environmental, Social and Governance (ESG) and sustainability data is provided in an Excel
format.
ESG Reporting Index Alignment table referencing our disclosures using voluntary sustainability reporting
frameworks: Global Reporting Initiative (GRI) Standards and World Economic Forum (WEF)
Stakeholder Capitalism Metrics.
Standard Chartered
Foundation (previously
‘Futuremakers’) Impact Report
Provides progress and outcomes about the Standard Chartered Foundation, our global
youth economic empowerment initiative, tackling inequality and promoting greater
economic inclusion.
Nature Report Outlines our progress against the recommendations of the Taskforce on Nature-related
Financial Disclosures (TNFD).
Methane White Paper Provides details about the calculation methodology and baseline for the intensity of our
upstream oil and gas portfolio’s methane emissions.
Modern Slavery Statement Sets out the steps we have taken to assess and manage the risk of modern slavery and
human trafficking in our operations and supply chain.
Net Zero Methodological
White Paper – Thejourney
continues
Describes our approach to net zero, laying out the methodologies we have used to calculate
our financed and facilitated emissions, and setting our interim 2030 targets at sector level.
Net Zero Transition Plan Sets out how we aim to deliver on our commitments to reach net zero emissions in our
financed emissions by 2050.
Policies We publish our main sustainability-related policies, including on: anti-money laundering;
anti-bribery and corruption; diversity and inclusion; health, safety and security; privacy;
public policy engagement; and Speaking Up.
Position Statements
andProhibited Activities
We use our cross-sector and sector-specific Position Statements and Prohibited Activities list
to assess whether to provide financial services to clients.
PRB reporting and
self-assessment
Our disclosures on actions undertaken related to the six principles as defined by the United
Nations Principles for Responsible Banking.
Supplier Charter Sets out principles for the behavioural standard that we expect from our suppliers, and those
within a supplier’s sphere of influence that assist them in performing their obligations to us.
Sustainable Finance
ImpactReport
We present the impact of our sustainable finance assets on a portfolio basis.
Sustainable Finance
Frameworks
Our Green and Sustainable Product Framework and Sustainability Bond Framework outline
our definition of green, social and sustainable finance. Our Transition Finance Framework
sets out the activities and entities that we consider eligible for transition finance.
Read the Group’s suite of sustainability-related reports and disclosures on sc.com/sustainabilitylibrary
Standard Chartered | Annual Report 202570
Our approach to
sustainabilityreporting
Reporting standards
We have considered our ESG reporting obligations under
theHong Kong and Financial Conduct Authority (FCA) UK
Listing Rules, as well as the UK Companies Act Climate-related
Financial Disclosure Regulations 2022 (see Directors’ report
on page 208 for further information). We are reporting
against the climate-related disclosure requirements set out
inPart D of the ESG Reporting Code (Appendix C2 to The Rules
Governing the Listing of Securities on the Stock Exchange
ofHong Kong Limited) in this Annual Report on a ‘comply
orexplain’ basis. See our climate reporting index on page 458.
Wehave sought to comply with material requirements to
theextent currently possible without undue cost or effort
forthe Group or for our clients and other third parties who
provide or publish information required for our most material
disclosures. Requirements for which we are not yet able
todisclose all information are explained below and
throughoutthis chapter:
Under paragraph 31 of HKEX Appendix C2 – Part D, an
issuershall disclose the amount and percentage of assets or
business activities vulnerable to climate-related physical risks.
The percentage and amount of our WRB assets or business
activities vulnerable to climate-related physical risks are
disclosed on pages 293 to 295 of the Risk review section
ofthis Annual Report. For CIB, we have seen a steady
improvement in the coverage of Physical Risk data in the last
few years aswe work towards full disclosure. We are in the
process of incorporating a methodology to include physical
risk gradings to identify and assess our clients’ exposure
toextreme weather events. More information can be found
on pages 289 to 297 of the Risk review section. Therefore, the
disclosure ofthe percentage of assets or business activities
vulnerable to climate-related physical risks isa work-in-progress
and is expected to be covered inour2026 Annual Report.
We are disclosing our material Scope 3 financed and
facilitated emissions pursuant to article 28(c) on page 99.
Wedo not include our clients’ underlying Scope 3 emissions
for all reported financed emissions sectors – refer to page 99
for our rationale. This data also does not yet include emissions
related to undrawn loan commitments as these are not part
of our original net zero roadmap. We acknowledge that
industry practice and disclosure requirements evolve over time
as more detailed calculation methodologies are developed,
and we are preparing to cover emissions related to undrawn
loan commitments and any other potential asset classes
deemed to be material in our 2026 Annual Report.
We are not able to present all disclosures for the same period
as the financial statements, as disclosed in more detail on
page 74. However, additional information has been provided
on page 71 forcompliance with Part D of the ESG Reporting
Code, paragraph 17(1).
For our Taskforce on Climate-related Financial Disclosures
(TCFD) content table, see the climate reporting index
on pages 458 to 465
We have also used the GRI Standards to guide our disclosures
and have published an ESG Reporting Index with reference
todisclosures captured in the GRI Universal and select
TopicStandards. We have also considered relevant WEF
Stakeholder Capitalism Metrics.
Read more about our ESG Reporting Index at
sc.com/sustainabilitylibrary
Our approach to sustainability reporting will continue
toevolve subject to regulatory and voluntary standards,
frameworks and principles relevant to our business across
listing locations and footprint markets. We are actively
preparing for future reporting obligations across the various
jurisdictions in which we operate, including reporting under
the International Sustainability Standards Board’s (ISSB) IFRS
S1 General Requirements of Sustainability-related Financial
Information (IFRS S1) and IFRS S2 Climate-related Disclosures
(IFRS S2). This includes preparing for reporting our absolute
gross financed emissions disaggregated by asset class
(including undrawn loan commitments) once required
underIFRS S2 paragraph B62.
During 2025, the Group has been tracking the outcome
oftheEU Omnibus proposal and has concluded that none
ofits subsidiaries are required to report against the EU
Corporate Sustainability Reporting Directive (CSRD) for
the2025 reporting period. We will continue to monitor
jurisdictional updates in future periods to determine
whetherany reporting is required at a subsidiary level.
Metrics and calculation methodology
In our Net Zero Methodological White Paper, we share
thecalculation methodology for our reported financed
andfacilitated emissions calculations and disclosures.
Thepaper sets out the scope of financial products included
inour financed and facilitated emissions calculations
onpage 9and 45.
Read more in our Net Zero Methodological White Paper
– The journey continues, on sc.com/sustainabilitylibrary
Read more about the principles and methodology
formeasuring our environment data at
sc.com/environmentcriteria
The Group includes Environmental, Social and Governance (ESG)
andsustainability information in this Annual Report, providing
investors and stakeholders with an understanding of the implications
of relevant sustainability-related risks and opportunities, and progress
against our objectives. The reporting boundaries for this information
are the same as for the remainder of this Annual Report.
Annual Report 2025 | Standard Chartered 71
Sustainability review
In addition to these restatements and revisions, we
occasionally receive revised prior reporting period data from
third parties as their own data accuracy and review processes
tighten. We revise our data to account for these where
appropriate to maintain comparability and reference the
change in an accompanying footnote.
Materiality
In preparing these disclosures, we have conducted two
separate materiality assessments guided by ISSB educational
material on ‘Sustainability-related risks and opportunities
andthe disclosure of material information’ and ‘GRI 3:
Material Topics 2021’.
Material information using ISSB guidance
We conducted a materiality assessment to identify the
sustainability-related risks and opportunities that could
reasonably be expected to affect the Group’s prospects,
using ISSB educational material. As part of this exercise, we
have determined that climate-related risks and opportunities
could reasonably be expected to affect the Group’s prospects
over the medium to long term, and relevant information
pertaining to those risks and opportunities – including how
we address climate risk through our business strategy and
financial planning as we implement our net zero journey – is
therefore material to the primary users of this Annual Report.
In the short term, the quantitative assessment of the impact
of climate risk on the IFRS 9 expected credit loss (ECL)
provision resulted in only a marginal ECL increase across CIB
and WRB, which has been recorded as a management
overlay for the 2025 year end. Asa result, the Group 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.
SeeNote 1 to the financial statements on pages 332 to 333
forfurther details.
In 2025, we made the following restatements to previous year comparatives:
Page
Prior year total financed emissions have been restated following a restatement inthe oil and gas sector
absolute emissions. The prior period has been restated toapply the Group’s revised methodology to reflect
improvements in data quality and only counts Scope 3 emissions on upstream production activities (including
diversified and integrated counterparties).
92
The agriculture portfolio Implied Temperature Rise and target range have been revised following an update
tothe Carbon Disclosure Project methodology on default temperature scores, moving from 3.1°C to 3.4°C.
98
We have restated our Scope 3 Category 1: Purchased goods and services emissions data for the 2024 reporting
year from 346,193 tCO
2
e to 319,078 tCO
2
e due to one of our largest suppliers (by spend) restating their publicly
reported emissions.
92
Emissions from third party co-located data centres have been reclassified to Scope 3 category 8 from Scope 3
category 1. We re-evaluated the nature of our lessee relationship with these assets and, in line with the GHG
Protocol, believe this data aligns more closely to Scope 3 category 8.
92
2024 sustainable finance mobilisation has been restated resulting in an increase of $2.2 billion from
$120.7 billion up to $122.9 billion.
83
Sustainable investments assets under management for Hong Kong as at 31 December 2024 have been restated
from $599.7 million to $539.2 million for alignment to local regulations around sustainable products classification
and reporting.
88
The materiality assessment process incorporated value chain
mapping, evaluating resources, relationships and stakeholder
engagement across the Group to identify a preliminary list of
potential sustainability-related risks and opportunities and a
corresponding list of their potential impacts on the Group’s
cash flows, access to finance or cost of capital now and in the
future. In identifying information about those potential risks
and opportunities, we considered additional guidance from
frameworks including the Sustainability Accounting
Standards Board (SASB) Standards, GRI Standards and the
United Nations Environment Programme Finance Initiative
(UNEP FI) ESRS Interoperability Guide.
To assess whether information about climate-related risks
and opportunities was material, we considered their likely
effect on the Group’s prospects and the returns to current
and potential shareholders. This included timing, magnitude
and likelihood of the potential effects, and the usefulness
ofthe information associated with those potential effects to
primary users of the Annual Report when making decisions.
This underwent a review and challenge process, with input
from subject matter experts across the Group and third-party
review by external consultants.
As a result of this process, the Group deemed information
about internal carbon pricing, the split of GHG emissions into
constituent gases (with the exception of financed methane
emissions), and Scope 3 categories other than Categories 1, 6
and 15, as immaterial or not applicable.
The full list of climate-related risks and opportunities
identified as part of this assessment can be found in the
Climate risks and opportunities section on page 107.
Howweidentify and manage those risks and their current
and anticipated effects on the Group’s business model,
valuechain, strategy and decision-making is set out
onpages110 and 116 to 117.
Our approach to sustainability reporting
Standard Chartered | Annual Report 202572
Note 1 to the financial statements on pages 332 to 333 sets
outthe effects of those climate-related risks and opportunities
onthe Group’s financial position, financial performance and
cash flows for the reporting period, and their anticipated
effects on the Group’s financial position, financial performance
and cash flows over the short, medium and long term, taking
into consideration how those sustainability-related risks
andopportunities have been factored into the Group’s
financial planning.
Material topics under GRI
GRI 3: Material Topics 2021 provides step-by-step guidance
for organisations on how to determine material topics.
Material topics are those that represent an organisation’s
most significant impacts on the economy, environment
andpeople, including impacts on their human rights – both
positive and negative.
In applying the guidance, we have taken steps to
understandthe Group’s context, identify actual and potential
impacts, assess the significance of the impacts and prioritise
the mostsignificant for reporting. We have done this by
engaging with relevant internal and external stakeholders
and by validating the material topics with experts across
theChief Sustainability Office. Our material topics, which
arereviewed annually, are set out in the table below.
GRI topics Action and decision Learn more
Sustainable
finance
How we identify opportunities to drive positive
environmental and social impact by helping our
clientsaddress environmental and social challenges,
transitiontowards low-carbon economies and achieve
sustainablegrowth.
Sustainable finance
Page 83
Climate The positive and negative impacts of our financing activities,
direct operations and supply chain on the climate. This
includes our emissions, physical and transition climate risk
management, and progress against our net zero roadmap.
Climate
Page 90
Nature How we contribute towards our ambition of shifting
financial flows towards nature-positive outcomes. This
includes the Group’s progress against our nature-related
ambitions.
Nature
Page 111
Human capital
management
The practices used for recruiting, developing and optimising
employee output and relationships, across the value chain.
This includes human rights and modern slavery, health and
safety (including physical and mental wellbeing) and
diversity and inclusion.
Stakeholders
Page 37
Supplementary people information
Page 444
Society and
community
relations
The positive and negative impacts of our financing activities
on the societies and communities around us. This includes
financial inclusion, job creation, vulnerable client protection
and charitable giving.
Social impact
Page 113
Data privacy The protection practices over client and personal
information held by the Group.
Data privacy and protection
Page 121
Topical and emerging risks
Page 47
Corporate
governance
Governance structures and internal control processes
bywhich the Group is directed. This includes risk
management, business conduct, anti-bribery and corruption,
anti-money laundering, and whistleblower protection.
Managing environmental andsocial risk
Page 116
Integrity, conduct andethics
Page 118
Sustainability-related governance
Page 122
Read more about our materiality assessment and how we engage with stakeholders at sc.com/sustainabilitystakeholders
Annual Report 2025 | Standard Chartered 73
Sustainability review
Reporting periods
The reporting periods for the Group’s sustainability
information do not always align with the financial reporting
year. This is due to a lag in the availability of third-party data
and, where applicable, the time needed for independent
third-party assurance. In preparation for future reporting
requirements, we are considering how best to further align
reporting periods going forward by increasing the number
ofestimates used in our calculations.
Greenhouse gas emissions and other operational
environmental performance data
The reporting period for the majority of our operational
environmental performance indicators, including GHG
emissions, waste generation and water consumption, is from
1 October 2024 to 30 September 2025. This allows sufficient
time for independent third-party assurance to be completed
and for obtaining external third-party data where needed
prior to the publication oftheGroup’s Annual Report.
This only differs for the following Scope 3 emissions where
aperiod of 1 January to 31 December with a one to two-year
lag is used: Category 1: Purchased goods; Category 2: Capital
goods; Category 4: Upstream transportation and distribution;
Category 6: Business travel; Category 8: Upstream leased
assets; and Category 15: Investments. Emissions data for
thesecategories is disclosed on a one to two-year lag with
emissions reported in 2025 based on the availability of
third-party data and client data.
For reasons described above, our Scopes 1 and 2 emissions
are reported for the period 1 October 2024 to 30 September
2025. This allows comparability over time and aligns with our
Scope 1 and 2 net zero emissions by 2025 target, which is
based onthe same period.
This year, we are also disclosing our Scopes 1 and 2 emissions
for the period 1 January 2025 to 31 December 2025 on page
452, as newly required under Part D ofthe ESG Reporting
Code, paragraph 17(1).
Sustainable finance data
With the exception of sustainable finance income,
sustainable finance metrics are reported at 30 September
2025, allowing sufficient time to complete reporting.
Sustainable finance income is reported for the full financial
period from 1 January 2025 to 31 December 2025.
Other sustainability-related data
Unless otherwise stated, the reporting period for all other
sustainability information in this Annual Report is from
1 January 2025 to 31 December 2025 to align with the
financial reporting period year.
Independent limited assurance
Ernst & Young LLP (EY) was appointed to provide
independent limited assurance over certain data points
within this Annual Report, indicated with a caret symbol (^).
The assurance engagement was planned and performed
inaccordance with the International Standard on Assurance
Engagements 3000 (Revised) Assurance Engagements Other
than Audits or Reviews of Historical Financial Information
(ISAE 3000 (Revised)). This independent assurance report
isseparate from EY’s audit report on the financial statements
and is available at sc.com/sustainabilitylibrary. This report
includes further detail on the scope, respective responsibilities,
work performed, limitations and conclusions.
We obtained independent limited assurance on the Group’s
Scope 1 and 2 (market-based) GHG emissions and Scope 3
data centres GHG emissions by Global Documentation Ltd.
We also obtained independent verification of the Group’s
Scope 3 emissions associated with business travel (air travel)
from Schneider Electric. These verifications were conducted in
accordance with the ISO 14064-3 GHG standard and are also
available at sc.com/sustainabilitylibrary.
For further details on assurance obtained on comparative
prior year data, please refer to the prior year’s annual report.
Our approach to sustainability reporting
Standard Chartered | Annual Report 202574
Sustainability Aspiration Progress in 2025
Aspiration 1: Mobilise $300 billion of sustainable finance
1
We believe sustainable finance is essential in addressing the significant
socialandenvironmental challenges faced by our markets. It has the potential
to support the needs of businesses, people and communities, by enabling
thetransition to low-carbon technologies, accelerating financial inclusion,
andpromoting sustainable economicgrowth.
We mobilise sustainable finance through bonds, loans, advisory and trade
finance products. Our ability to offer sustainable finance products is supported
by our Sustainable Finance Frameworks, which outline how we apply
sustainable finance labels across products andtransactions.
$157bn^
cumulative mobilisation of sustainable
finance from January 2021 to September
2025 against our commitment to mobilise
$300 billion by 2030.
Sustainability Aspirations:
Ourlong-term goals
Our approach to sustainability
Sustainability is a strategic area of focus, as we strive to promote
inclusive growth and prosperity across the markets where we operate.
Our approach to sustainability supports the Group’s
strategy, which 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.
Our approach is articulated through our long-term
sustainability goals – our Sustainability Aspirations – and
our short-term sustainability targets – our Sustainability
Strategic Pillars. The Aspirations and Pillars set out how
weintend to deliver across our Sustainability agenda.
Sustainability continues to be included in the 2025
Groupscorecard and 2024–26 long-term incentive plan
(LTIP) with performance measures that align with our
Sustainability Aspirations and Sustainability StrategicPillars.
This section sets out progress against our Sustainability
Aspirations and Sustainability Strategic Pillars before we
dive deeper into the material topics set out on page 73,
including sustainable finance, climate, nature and
socialimpact.
1 We define mobilisation of sustainable finance as our share of any investment or financial service provided to clients that supports: (i) the preservation and/or
improvement ofbiodiversity, nature or the environment; (ii) the long-term avoidance/decrease of GHG emissions, including the alignment of a client’s business
andoperations with a 1.5°C trajectory or national net zero pathway (known as transition finance); (iii) a social purpose; or (iv) incentivising our clients to meet their
own sustainability objectives (known assustainability-linked finance). It is a measure of total capital mobilised and considers the total value committed on facilities
provided to clients. Mobilisation is the provision ofcapital that, as per the legal contractual documents meet the sustainable finance verification criteria, or SLL
eligibility, as of the date of execution of the trade.
Our Sustainability Aspirations are consolidated into four overarching long-term goals,
eachsupported by key performance indicators (KPIs). Together, these reflect our commitment
tofosteringsustainable social and economic development in our markets.
Annual Report 2025 | Standard Chartered 75
Sustainability review
Sustainability Aspiration Progress in 2025
Aspiration 2: Operationalise our interim 2030 financed emissions targets to meet our 2050 net zero ambition
We aim to reach net zero in our financed emissions by 2050. The Group has
setand disclosed interim financed emissions reduction targets for 2030 across
our 12 high-emitting sectors, including a facilitated emissions target for oil
andgas, which currently makes up the majority of emissions within our
facilitation portfolio.
We also believe that while target-setting is crucial, we need a clear plan to
transition our business. This can be found in our Transition Plan, which outlines
a comprehensive framework on how we intend to transition our business and
operations, and collaborate with our clients with the aim of delivering on
ourinterim 2030 targets and ultimate 2050 net zero ambition. We recognise
thechallenges posed by those of our markets that have yet to commit to net
zero or whose commitments extend beyond 2050, but we remain focused
ondriving progress and continued to engage our transition priority clients
in2025. This included assessing their targets against the Group’s and better
understanding any opportunities for sustainable finance to support their
journeys. Read more on our progress towards our interim 2030 net zero
targetson page 98.
We continued to work on our key focus
areas in section 9 (Next steps) of our
Transition Plan including:
Set up a net zero alignment process when
approving client limits for deals going
tothe Capital Allocation Forum
Embedded alignment outcomes with
sector pathways into Climate Risk
Assessments and Business Credit
Application documents for in-scope net
zero exposures
Held Net Zero & Climate Risk Working
Forums for 45 per cent of transition priority
clients in 2025 to step up engagement
ontheir transition plans, net zero targets
and sustainable finance opportunities
Aspiration 3: Enhance and deepen the sustainability ecosystem
We continue to utilise our experience and network to actively contribute
tokeyglobal partnerships and initiatives that deliver differentiated impact
and help to mature and advance the sustainability ecosystem. For example,
we continue to maintain guiding roles in the Glasgow Financial Alliance
forNet Zero (GFANZ), the UN Global Alliance of Investors for Sustainable
Development (GISD), and the Integrity Council for the Voluntary Carbon
Market (ICVCM), among others.
1
Through innovative frameworks and impactful initiatives, we have actively
sought to support global efforts to advance and unlock capital flows towards
critical areas such as adaptation and resilience, nature, carbon solutions and
sustainable finance.
‘Scaling Circular Finance: No Time
toWaste’ paper published by newly
established Circular Economy Innovation
Hub
Published our inaugural Nature Report
asa TNFD Early Adopter
Aspiration 4: Drive social impact with our clients and communities
We seek to accelerate the mobilisation of both private and philanthropic
capital to address critical social challenges in our footprint markets.
Byleveraging our financial expertise, product innovation and strategic
partnerships, we deliver solutions that meet immediate needs while
empowering communities for sustainable growth.
With our associated charity, the Standard Chartered Foundation, we establish
strategic collaborations with clients, NGOs and communities to mobilise social
capital, create an inclusive ecosystem to drive inclusive economies and
increase equitable prosperity. Read more on pages 113 to 115.
106,570
jobs enabled and supported since 2019
2
€1bn
inaugural Social Bond issued
1 A list of our primary memberships can be found at sc.com/sustainabilitystakeholders.
2 Total jobs-enabled data comprises underserved participants who access decent employment at the end of the intervention, and direct jobs (part-time and
full-time direct employees, contractors, support/gig workers, and the entrepreneurs themselves) created by supported microbusinesses within 12 months of the end
of the intervention. This KPI is based on actual data collated from project alumni over the seven-year period, estimates based on empirical research, and ex-post
project evaluations. The data comprises 69,360 young participants in decent employment, and 37,210 direct jobs enabled by supported microbusinesses.
For detailed progress against all our Sustainability Aspiration targets read more on pages 454 to 457
Our approach to sustainability
Sustainability Aspirations:
Ourlong-term goals
Standard Chartered | Annual Report 202576
Sustainability Pillars Progress in 2025
Pillar 1: Scale sustainable finance income
Growth and innovation in our sustainable finance franchise is critical to
thedelivery of the Group’s net zero roadmap and to supporting our clients
ontheir own transition journeys. Our sustainable finance teams develop
customised solutions that speak to clients’ needs and ambitions.
The Group’s sustainable finance product suite is set out within our Green
andSustainable Product Framework (GSPF), as described on page 89.
Oursustainable finance income target is a CIB target, based on income,
netoffunding costs, generated from transactions utilising sustainable finance
products for our clients and income generated from clients whose activities
align with those in our Sustainable Finance Frameworks.
$1.07bn^
sustainable finance income generated
in2025, exceeding our target of at least
$1 billion annual income by 2025
1
Pillar 2: Further embed sustainability across the organisation
The CSO organisation aims to act as a catalyst for change and a centre of
excellence. We foster collaboration internally to embed sustainability across
our business operations and functions. We collaborate externally with clients
and other stakeholders who are aligned with our mission to drive change.
We aim to create a self-reinforcing cycle, which is built on established
processes, clear frameworks, engagement with our clients and collaboration
across risk andbusiness teams. Our aim is to work with our clients to support
their transition and decarbonisation journeys and where clients evidence
transition, help to accelerate progress.
4,209
clients evaluated through climate risk
assessments, and 1,204 client ESGR risk
assessment
reviews
2
completed
28,740
colleagues completed the Sustainable
Finance Foundation Programme since
commencement in2022, and38 ad hoc
training courses held in 2025, reaching
more than 6,388 colleagues
Pillar 3: Deliver on the annual milestones set forth in our net zero roadmap
We aim to reach net zero in our financed emissions by 2050, having reached
netzero in our own operations (Scope 1 and 2 emissions) in 2025.
3
We focus on three areas to reduce emissions: our operations, our supply chain
and financed emissions associated with our clients. The majority of our GHG
emissions are linked to our lending activities. As such, we have prioritised our
measurement and decarbonisation efforts in the highest-emitting and most
carbon-intensive sectors of our portfolio.
We have set financed emissions targets for our 12 highest-emitting sectors,
and have further set a facilitated emissions baseline and target for the oil and
gas sector, which currently makes up the majority of emissions within our
facilitation portfolio.
Net zero in Scope
1 and 2 emissions
and predominantly on track for our
12interim high-carbon sector financed
emission targets
4
Measured and disclosed financed
methane emissions intensity associated
with our upstream oil and gas portfolio
Pillar 4: Leverage our Innovation Hubs
Our five thematic Innovation Hubs – Adaptation Finance, Blended Finance
Programmes, Carbon Markets & Finance, Nature Finance and Circular
Economy –focus on emerging sustainability themes that are nascent but ripe
for scale. TheHubs help to drive innovation across the sustainability market.
This model has been more successful than anticipated, as we executed on seven
landmark transactions aligned to the themes of the Hubs in 2025 (compared
to four in 2024). Read more on the work conducted by the Hubs on page 78.
7
transactions aligned to the Group’s
sustainability-themed Innovation Hubs
executed in the year
1 Values noted with a caret symbol (^) are subject to independent limited assurance by EY. The report is available at sc.com/sustainabilitylibrary.
2 This metric captures the number of clients reviewed for Environmental and Social (E&S) risks by dedicated internal E&S specialist teams. In September 2025,
theReputational and E&S risk assessments were consolidated into a single ESGR assessment, Client Environmental, Social, Governance and Reputational Risk
Assessment (Client ESGRA). We aim to report the data for Client ESGRAs in our 2026 Annual Report and Accounts.
3 See pages 93–95 for details about net zero in our Scope 1 and 2 emissions.
4 See pages 99–106 for details about how we track against each of the 12 high-carbon sector pathways.
Sustainability Strategic Pillars:
Our short-term targets and immediate priorities
Our four Sustainability Strategic Pillars represent our near-term strategic focus designed
todrivemomentumand accelerate progress towards ourlonger-term Sustainability Aspirations.
Annual Report 2025 | Standard Chartered 77
Sustainability review
Innovation hubs
Our Innovation Hubs focus on emerging sustainability themes that are nascent
butripe for scale, aligned to areas where the Group has a core competency,
andare particularly suited to clients in our footprint markets.
Our Adaptation Finance, Blended Finance Programmes,
Carbon Markets & Finance, and Nature Finance Innovation
Hubs wereestablished in 2023. In 2025, we launched our fifth
Innovation Hub focused on the Circular Economy to help
identify, facilitate and scale bankable opportunities that
seekto minimise the impact of the economy on the
planet’ssupport systems.
Each Hub is transversal, run by senior leaders in the CSO
organisation, and seeks to identify opportunities for future
returns outside of our core range of traditional products
andservices. By demonstrating leadership to advance the
ecosystem in these emerging thematic areas, the Group
expects to be well positioned to take advantage of the
significant and differentiated revenue potential that will
result from maturation of these themes in the future.
Thedealfacilitates the trade of solar modules resistant
totornadoes and tropical storms, extreme wind, storms
andsandstorms. It also represents the Group’s first labelled
adaptation finance transaction in China.
Standard Chartered is also co-chair of the UK Climate
Financial Risk Forum adaptation working group. In addition,
we have been asked to join the newly formed ASEAN
Working Committee on Capital Market Development and
ASEAN Capital Markets Forum Joint Sustainable Finance
Working Group’s Industry Advisory Panel Working Group
onAdaptation. Through these forums and others, wewill
continue to engage the financial ecosystem to seek
opportunities for adaptation and resilience in Asia, Africa
andthe Middle East.
In 2025, we won the Strategic Leadership – Innovative
Financing Mechanism Award, which is part of the Climate
Resilience Awards launched by the World Business
CouncilforSustainable Development and Global Resilience
Partnership. We also ranked first in the Climate Proof
&ClimateAligned 2025 world’s largest commercial banks
byadaptation maturity.
3
For more on Adaptation Finance see our Adaptation
Economy Report sc.com/adaptation-economy
See our Guide for Adaptation and Resilience Finance at
sc.com/adaptation-resilience
Our
Innovation
Hub
model
Adaptation
Finance
Blended Finance
Programmes
Circular
Economy
Carbon
Markets &
Finance
Nature
Finance
1. Adaptation Finance
1
Context
Across our markets, there is an urgent need to unlock and
scale public and private climate adaptation finance to build
shared societal resilience. This means embedding adaptation
and resilience into financial decision-making to manage risks
and identify new opportunities, which is critical given that
every $1 spent on adaptation this decade could generate up
to $12 of economic benefit.
2
Adaptation represents both a risk and an opportunity for the
Group, its clients and communities. We are working to
identify and scale the adaptation finance opportunity across
our business and to support the development of adaptation
finance across the wider market. Our ‘Guide for Adaptation
and Resilience Finance’ supports the market in identifying
adaptation opportunities, by setting out eligible financeable
activities and guidance on what constitutes adaptation and
resilience investment, alongside a practical roadmap for
financing and investment opportunities.
Progress in 2025
Further to the completion of the Group’s first adaptation
finance transaction in 2024 – an adaptation letter of credit
with a parametric insurance provider, which provided
financial protection for businesses in the renewable energy
sector against extreme weather – we have now also completed
ourfirst adaptation finance transaction for a corporate client.
About the Innovation Hubs
1 Adaptation and resilience finance is considered to be any financial service that is provided to an entity to enable adaptation and enhance resilience to climate and
non-climate-related natural hazards within that entity’s assets, operations, clients, supply chain, or the communities inwhich it operates.
2 Read our research on the Adaptation Economy at sc.com/adaptation-economy.
3 Based on 15 qualitative indicators as described in the Global Bank Climate Adaptation Assessment 2025 published by Climate Proof and ClimateAligned.
Our approach to sustainability
Standard Chartered | Annual Report 202578
2. Blended Finance Programmes
1
Context
As the global community accelerates efforts to meet 2030
climate and sustainability targets, the need for scalable
blended finance solutions remains critical. We are recognised
by Convergence, the global network for blended finance, as
one of the most active commercial banks in blended finance
globally. However, progress is being made, many blended
finance transactions remain bespoke and fragmented.
Wecontinue to champion a programmatic approach through
country- and sector-platforms, to bring public and private
capital together and deliver impact at scale.
Progress in 2025
We continued to advance our programmatic approach by
seeking partnerships with development finance institutions
(DFIs), multilateral development banks (MDBs), family offices,
philanthropic organisations and country platforms.
We are a signatory to the Indonesia and Vietnam Just Energy
Transition Partnerships (JETPs). We have pledged support
inboth countries as part of a cohort of GFANZ member banks
in the Working Group that have collectively committed to
atleast match initial donor contributions. We acted as lead
arranger for Indonesia’s first JETP solar project. Together
withDeutsche Investitions- und Entwicklungsgesellschaft
(DEG) and Proparco we structured a $60 million facility
toco-finance the 92 MWp Saguling floating solar project
developed by PLN IP and ACWA Power, mobilising both
public and private capital to accelerate Indonesia’s transition.
We were mandated to advance Lesotho’s Just Energy
Transition process, the first private sector-led country
platform. The initiative, endorsed by His Majesty King Letsie
IIIof Lesotho and the Government of Lesotho, is designed
tomobilise capital to finance a portfolio of generation and
transmission projects to support the delivery of Lesotho’s
nationally determined contribution (NDC) and Mission 300
Compact. The opportunity represents a unique case study for
a landlocked, developing country to leapfrog from an energy
importer to an exporter of clean power, supporting domestic
and regional energy stability and security, and the creation
oflocal jobs and technical skills development.
We are continuing to work on developing a sector-led
partnership, and our proposal for an innovative financing
solution for renewable energy in Southern African countries
has been shortlisted by British International Investment
intheir ongoing Mobilisation Facility competition.
We continue to use our experience and network to actively
contribute to key global partnerships and initiatives that
deliver differentiated impact and help to mature and
advance the blended finance thematic such as the GFANZ
and the WEF.
1 Blended Finance is the use of catalytic public (and/or philanthropic) capital to increase private sector investment that supports the Sustainable
DevelopmentGoals(SDGs).
Annual Report 2025 | Standard Chartered 79
Sustainability review
3. Carbon Markets & Finance
Context
Effective carbon markets are critical to global efforts
tomitigate climate change and to finance sustainable
development. This was stressed by the UN Intergovernmental
Panel on Climate Change in its April 2022 report on mitigating
climate change, which noted that “the deployment of carbon
dioxide markets to counterbalance hard-to-abate residual
emissions is unavoidable if net zero emissions are to
beachieved”.
Carbon markets put a price on carbon emissions, can be
complementary to credible net zero transition plans, and
help channel climate finance where it’s needed most across
our markets. A high-integrity carbon market, combined
with corporate commitments to cut emissions and high
standards of reporting can accelerate the global progress
towards net zero by 2050, while supporting sustainable
development globally.
The Group has been a firm advocate of carbon market
standardisation and has been at the forefront of several
initiatives working to ensure that high-integrity, scalable
carbon markets develop. We offer trading, advisory,
financing and risk management services to our clients
aroundthe world and continue to develop our suite of
banking solutions as carbon markets grow and mature.
Progress in 2025
The Carbon Markets & Finance Hub focused on further
expanding capabilities and delivering strategic partnerships.
The year was marked by a clear nature agenda in international
climate policy, which put the pressing need for commitment
towards forest conservation and restoration at the top of the
agenda. We signed an exclusive agreement with the Brazilian
State of Acre in connection with Acre’s work to market their
Amazon forest REDD+ conservation credits generated over
the next five years. We also participated in large-scale
carbon project finance, supporting the Chestnut afforestation
project in the US, acting as mandated lead arranger (see
case study on page 82).
We are seeing an increasing need for carbon finance as
thepublic sector is committing to increasingly ambitious
decarbonisation targets, and hyperscalers are entering
agrowing amount of large procurement contracts for
carboncredits. The Hub actively engages with those players,
positioning ourselves as a partner of choice through our
market expertise and strong credentials in the sustainable
and blended finance space. We are broadening our carbon
finance and advisory offering across conventional debt finance,
capital markets and, increasingly, private debtmarkets.
In December 2025, we acted as sole lead manager and
bookrunner for a $200 million Clean Cooking Outcome Bond
issued by the World Bank, unlocking $30.5 million in climate
finance to deploy 415,000 clean cooking devices across four
regions in Ghana. The planned stove distribution aims to
make cleaner cooking accessible to 1.3 million people and
reduce GHG emissions by more than 1.8 million tonnes of
carbon dioxide equivalent. The transaction represents the
first time outcome bond returns have been linked to
Internationally Transferred Mitigation Outcomes under
Article 6.2 of the Paris Agreement, contributing towards
thenational climate targets of Ghana and Switzerland.
On the trading side, we remain a prominent liquidity provider
in the European and UK compliance markets. We are
expanding our capabilities as opportunities arise to support
clients in our home markets as more domestic and sectorial
compliance markets are developing. In 2025, we established
capabilities in the South African compliance market as we
continue working on our capabilities to participate in key
markets such as Carbon Offsetting and Reduction Scheme
for International Aviation (CORSIA) for aviation, Emissions
Trading System 2 (ETS2) for transport in Europe and the
Singapore Carbon Tax scheme.
We continue to demonstrate thought leadership and actively
collaborate with regulators in our key markets. This includes
support for the ICVCM review process for both carbon
standards and methodologies, and driving policy
engagement with industry and country representatives
through our position asco-chair of the International
Workgroup at the International Emissions Trading
Association (IETA).
We participated in the UK’s Jet Zero Taskforce to develop
proposals for the development and use of GHG removal
credits by UK aviation for the UK Government. InAsia, we
co-lead the carbon markets workstream for Singapore
Sustainable Finance Association alongside Climate Impact X
to support the development of an interoperable ASEAN
carbon market.
4. Nature Finance
Context
It is estimated that over half of global GDP is moderately or
highly dependent upon nature.
1
The Nexus assessment from
the Intergovernmental Science-Policy Platform on Biodiversity
and Ecosystem Services (IPBES)² highlighted how biodiversity
loss undermines livelihoods, food security, economies and
health, while also threatening the resilience of our planet
toclimate change.Despite its importance, nature is rapidly
declining. According to the Stockholm Resilience Centre, we
have already breached seven of the nine ‘planetary boundaries’
that are responsible for the stability and resilience of
Earthsystems and demarcate the safe operating space
forhumanity.
3
With respect to biodiversity, a catastrophic
73percent decline in wildlife populations has been observed
from1970 to 2020.
4
Protecting nature is essential to limiting
anthropogenic global warming and mitigating its impacts
sothat the planet can sustain all livelihoods and support
inclusive sustainable economic development.
Our approach to sustainability
1 PWC (2023) Managing nature risks: From understanding to action.
2 McElwee, P. D., et al. (2025). IPBES Nexus Assessment: Summary for Policymakers. Zenodo.
3 Azote for Stockholm Resilience Centre, based on analysis by Sakschewski and Caesar et al. 2025.
4 WWF (2024) Living Planet Report 2024 – A System in Peril. WWF, Gland, Switzerland.
Standard Chartered | Annual Report 202580
Having applied international environmental and social
standards in our financing for more than 20 years, our
presence in markets with some of the richest, remaining
biodiversity in the world positions us to engage with a range
of key stakeholders.
We are guided by our commercial ambition to increasingly
shift financial flows towards nature-positive outcomes by
aligning and contributing to the targets of the Global
Biodiversity Framework.
Progress in 2025
The Nature Finance Hub is responsible for advancing the
Group’s nature risk methodology and identifying financing
opportunities through nature risk assessments. In 2025, the
Group leveraged the Hub’s nature risk capabilities along with
the advancement in its geospatial tools for deal diligence
and nature performance modelling. Notably, in the landmark
project financing for Chestnut Carbon (see case study on
page 82), the Hub conducted nature performance analysis
across the asset locations. We also piloted nature-related
corporate engagement leveraging our in-house impacts and
dependency assessment capabilities to identify nature
finance transition opportunities.
We signed a Memorandum of Understanding with African
Parks to explore an outcome bond for Majete Wildlife
Reserve in Malawi leveraging the Verifiable Nature Unit
asthe outcome monitoring, reporting and verification
mechanism.
We co-funded a feasibility study to scope the potential blue
carbon value from Palk Bay’s seagrass
1
with the International
Union for Conservation of Nature (IUCN). If viable, these blue
carbon credits could catalyse private finance, incentivise
seagrass meadows preservation and generate revenue for
the local community.
The Hub supported Standard Chartered Indonesia in a
seaweed project with Association of Indonesian Employers
(APINDO), Conservation International and Konservasi
Indonesia to support sustainable seaweed industry
development in Indonesia, and provided expertise to
Standard Chartered Foundation to develop the framework
for the ASEAN Blue Economy Programme, which is intended
to create sustainable jobs for youth while protecting the
ocean across ASEAN.
Building on Standard Chartered’s blue economy leadership,
we were an active participant in the Blue Economy and
Finance Forum and United Nations Ocean Conference,
showcasing our execution of ‘The Bahamas debt-for-nature-
swap’ as an exemplary blended finance structure and
advocating the role the private sector can play in advancing
a sustainable and regenerative blue economy.
As an early adopter of the TNFD framework, we have
published our inaugural Nature Report alongside this Annual
Report. It reflects our assessment on the potential nature-
related impacts and dependencies in our financing activities
and direct operations.
Read our Nature Report at sc.com/nature
5. Circular Economy
Context
The transition to a circular economy is essential to reducing
the impact of population and per capita consumption
growth on the world’s finite resources and having a
nature-positive impact on the world’s ecosystems. Studies
have shown that a business-as-usual scenario could result in
the rate of raw material extraction being 60 per cent higher
in 2060 compared to 2020
2
, while waste generation is on
track to increase by 80 per cent, costing the global economy
$417 billion per year by 2050.
3
Eliminating waste and
pollution, extending product life through redesign and efforts
such as repair, reuse and remanufacturing, and keeping
materials in the economy longer through recycling at the
endof product life, collectively represent a multi trillion-dollar
opportunity that also directly contributes to carbon reduction.
The benefits of a circular economy include decoupling
economic growth from the growth of unsustainable resource
extraction and enabling companies and countries to improve
resilience and competitiveness, while also creating jobs
andadvancing all 17 of the UN SDGs.
There is a lot of progress to be made before a circular
economy becomes fully integrated into society as evidenced
by the low material circularity rate globally (around 7 per cent)
and a funding gap measuring in the trillions of dollars globally
needed for scaling infrastructure and solutions for circularity.
The Group recognises the risks and opportunities that the
circular economy can bring, especially to our footprint markets
where significant capital and innovative financing solutions
are required to scale upstream innovation and adoption of
circular solutions and for establishing the waste management
and recycling infrastructure critical for circularity in
developing markets.
Progress in 2025
We established a Circular Economy Innovation Hub, led
byAndrew Morlet, former CEO of the Ellen MacArthur
Foundation, an organisation that has catalysed global focus
on the circular economy and plastics use. The Hub has
initiated work to align circular economy measurement and
reporting definitions and standards, including expanding
theGroup’s Green and Sustainable Product Framework,
tobuild internal knowledge and capacity, and to identify
andsupport client opportunities. It has also led the
development of collaboration efforts with other banks
(circular economy- focused commercial banks and MBDs),
financial institutions, global organisations (UNEPFI, WEF),
governments (co-chairing the UK/Dutch Circular Economy
Finance Group comprising 10 leading commercial banks),
aiming to identify barriers and solutions to increase capital
mobilisation and circular economy investment.
1 Read the full study at sc.com/palk-bay.
2 Global Resources Outlook, UNEP 2024.
3 Global Waste Management Outlook, World Bank 2024.
Annual Report 2025 | Standard Chartered 81
Sustainability review
The Hub published its inaugural paper on the circular
economy entitled ‘Scaling Circular Finance: No Time to
Waste’. The paper makes the case for circular economy
financing and identifies four critical levers to be adopted
byrelevant stakeholders:
(1) Recognise that the circular economy is fundamental
todelivering climate and nature targets.
(2) Agree on circular definitions, principles, measurement
andreporting.
(3) Integrate the circular economy into finance risk models.
(4) Drive for a harmonised international regulatory and
policylandscape.
The work of the Hub is focused on collaboration to progress
these priorities to facilitate the flow of additional capital
towards the circular economy and on supporting clients
ontheir transition to more circular operating models.
Read our Circular Economy report at
sc.com/scalingcircularfinance
The Infrastructure and Development Finance Group, with support from
Carbon Markets and Nature Finance Hubs, unlocks real-world climate
and nature outcomes: Supporting Chestnut Carbon to advance US
afforestation in the voluntary carbon market
Chestnut Carbon, a nature-based carbon removal developer,
announced the closing of a landmark non-recourse project
finance credit facility of up to $210 million in August 2025.
Thisis one of the first applications of a commercial project
financing for a US voluntary carbon removal afforestation
project, with Standard Chartered participating as a
mandated lead arranger alongside a syndicate of banks.
Thistransaction marks a pivotal step towards achieving
increasing commercial scale for both the company and the
broader voluntary carbon market and US afforestation space.
This innovative credit facility leverages the long-term off-take
agreement executed earlier in 2025 between Chestnut
andMicrosoft to deliver more than 7 million tonnes of carbon
removal credits over 25 years as an anchor revenue stream
for the financing. The project is estimated to restore roughly
60,000 acres of unused farmland by planting over 35 million
native, biodiverse hardwood and softwood trees.
Setting a new standard for project finance
inthevoluntary carbon space
Drawing on elements from traditional sectors, most notably
renewable power projects, the deal’s structure, underpinned
by the long-term offtake contract with Microsoft, brings
credit discipline, rigorous underwriting and scalability to
arelatively new asset class.
As the industry evolves, this transaction is a prime example
ofhow innovative financing can help support a path towards
competitively priced capital and investor diversification.
Our approach to sustainability
Standard Chartered | Annual Report 202582
Sustainable finance
Sustainable finance, including transition finance, is a crucial part of our sustainability
strategy and is therefore reflected in both our long-term Sustainability Aspirations
andshort-term Sustainability Strategic Pillars.
Sustainable finance mobilised
1
Product
Oct 2024–Sep 2025
14
$m
Jan 2021– Sep 2024
$m
Cumulative progress
Jan 2021–Sep 2025
$m
Use of proceeds
2,3,10,12
11,035 29,694 40,729
Sustainability-linked loans (SLLs)
3,4,12
7,277 38,232 45,509
Transition finance
5,12
1,629 2,142 3,771
SME lending
6,10
1,270 3,677 4,947
Microfinance
6,10
592 2,691 3,283
Green mortgages
10
901 5,067 5,968
Mergers & Acquisitions (M&A)/advisory
8
4,621 7,777 12,398
Green, Social and Sustainable bonds facilitated
9
6,742 33,643 40,385
Total sustainable finance mobilised
11
34,067 122,923 156,990^
Of the above
Corporate & Investment Banking (CIB) 31,896 114,179 146,075
Wealth & Retail Banking (WRB) 2,171 8,744 10,915
Total sustainable finance mobilised
11,12,13
34,067 122,923 156,990^
Our broad sustainable finance product suite, which includes bonds, loans, advisory and trade finance, is underpinned by our
Sustainable Finance Frameworks (described on page 89) that outline how we apply sustainable finance labels across products
and transactions. We also work with retail and wealth clients to mobilise diverse sources of capital in support of social and
environmental outcomes.
1 We define mobilisation of sustainable finance as our share of any investment or financial service provided to clients that supports: (i) the preservation and/or
improvement of biodiversity, nature or the environment; (ii) the long-term avoidance/decrease of GHG emissions, including the alignment of a client’s business and
operations with a 1.5°C trajectory or national net zero pathway (known as transition finance); (iii) a social purpose; or (iv) incentivising our clients to meet their own
sustainability objectives (known as sustainability-linked finance). It is a measure of total capital mobilised and considers the total value committed on facilities
provided to clients. Mobilisation is the provision of capital that, as per the legal contractual documents, meet the sustainable finance verification criteria, or SLL
eligibility, as of the date of execution of the trade.
2 Mobilisation amounts include transactions with restricted use of the financing proceeds that align to our GSPF.
3 Lending transactions are measured as the loan commitment/underwritten amount provided to the counterparty by the Group.
4 SLLs refer to any type of loan instrument for which the economic characteristics can vary depending on whether the counterparty achieves ambitious, material
andquantifiable predetermined sustainability performance targets. The use of proceeds in relation to an SLL is not a determinant in its categorisation and,
inmostinstances, SLLs will be used for general corporate purposes.
5 Transition finance includes any financial service provided to clients to support them to align their business and/or operations with a 1.5°C trajectory or national
netzero target in line with our Transition Finance Framework (TFF). This is measured on a committed facility-provided basis.
6 SME and microfinance lending is the provision of finance to developed but not high-income countries as per the United Nations World Economic Situation
andProspects (UN WESP) report. The inclusion of small and medium-sized enterprise (SME) lending is linked to the ‘Access to Finance’ sub-theme within the
Group’s GSPF incorporating employment generation, and programmes designed to prevent and/or alleviate unemployment, including through the potential effect
of SME financing and microfinance. SME mobilisation is the lending facilities provided to small companies and renewed when the facilities renew, and includes
loans that fall within the relevant micro, small and medium-sized enterprise (MSME) loan size proxy as per the GSPF. Microfinance mobilisation is measured as the
cash disbursed.
7 Green mortgages are loans issued by our WRB where the underlying property meets a specific energy rating. Mobilisation ismeasured as the cash disbursed to
borrowers. Value mobilised in 2021 includes mortgages originated before 2021 but identified as Green in 2021.
8 M&A/advisory represents where the Group is the financial advisor to a transaction that has been tagged as sustainable in line with the Group’s GSPF or TFF.
Transactions are measured as the deal value or enterprise value divided by the number of advisors on the deal.
9 Capital market bonds are measured by the proportional bookrunner share of facilitated activities as determined by third-party league table rankings based
onthelevel of services provided.
10 A breakdown by eligible category has been provided for these product groups. Categories cannot be provided for SLLs, transition finance or Green, Social and
Sustainable bonds facilitated given the broad range of sustainability themes these can cover, and the diversity of eligible activities included in issuer frameworks.
The categories havebeen provided for use of proceeds, green mortgages, SME lending and microfinance.
11 Total prior year balances have been restated resulting in an increase of $2.2 billion from $120.7 billion up to $122.9 billion. This was due to the inclusion
oftransactions driven by a new product line within Corporate and Institution lending that have met the sustainable finance mobilisation eligibility criteria,
offsetbythe following:
• SME Lending has reduced due to mobilisation focusing on the Group’s five most material markets: India, China, Nepal, Bangladesh and Malaysia.
• As the Group remains cognisant of the ongoing scrutiny of sustainable finance products, during the year a process was undertaken to strengthen our eligibility
criteria review and control process. As a result, certain transactions have been subsequently derecognised across M&A, SLLs and use of proceeds.
12 Some prior year transactions have been reclassified between SLLs, use of proceeds and transition finance. Upon closer review of the reporting tag for these
facilities, it was identified that the incorrect reporting tag had been captured, which has been corrected in the current year. Reclassifications from SLLs to use
ofproceeds totalled $506 million, use of proceeds to SLLs totalled $145 million, use of proceeds to transition finance totalled $374 million, and SLLs to transition
financed totalled $57 million.
13 Values noted with a caret symbol (^) are subject to independent limited assurance by EY. The report is available at sc.com/sustainabilitylibrary.
14 Some transactions included in 2025 reporting related to deals that were signed during prior years but which only received approval for sustainable finance
taggingduring 2025.
Annual Report 2025 | Standard Chartered 83
Sustainability review
Sustainable finance
Our aspiration is to mobilise $300 billion
ofsustainable finance
We mobilised $157 billion of sustainable finance fromJanuary
2021 through to September 2025 against ourcommitment to
mobilise $300 billion by 2030.
We engage with clients about the provision of sustainable
finance products that aim to deliver financial services that
contribute to positive environmental and/or social outcomes.
Our Climate Transition Plan sets out our approach to portfolio
alignment with our net zero commitment, capital allocation
and client engagement for the 12 highest-emitting sectors,
helping usto assess transition readiness, identify where
clients may require support to evolve their business models
and guide decisions on how we deploy our balance sheet.
At the same time, we continue to expand products and
solutions that support both climate mitigation and climate
adaptation, including transition finance instruments,
sustainability-linked structures, blended finance partnerships,
and financing that enhances the resilience of infrastructure,
supply chains and communities to physical climate impacts.
In providing such products and tailored solutions, we aim to
create opportunities to facilitate a just and orderly transition,
while supporting the long-term resilience and competitiveness
of our clients and the economies in which we operate.
Examples of this can be found in our Sustainable Finance
Impact Report available at sc.com/sfimpactreport.
Sustainable finance mobilised – impact theme
To provide greater transparency as to the impact areas covered under our Use of proceeds products (Use of proceeds, SME
lending, microfinance and Green mortgages), we have disclosed belowabreakdown by green and social project categories
asset out in our GSPF. Categories represented are those where thereis a contribution to our sustainable finance mobilisation
metric. Given that SLLs, transition finance and Green, Social andSustainable bonds facilitated cover a broad range of
sustainability themes, and eligible activities are determined byissuerframeworks, theseare excluded from the breakdown below.
Green finance mobilisation themes
Oct 2024–Sep 2025
$m
Jan 2021–Sep 2024
$m
Cumulative progress
$m
Clean transportation 705 1,832 2,537
Eco-efficient products 67 – 67
Energy efficiency 30 408 438
Green buildings 5,430 14,934 20,364
Portfolio of green projects
1
1,529 2,002 3,531
Renewable energy 2,686 9,413 12,099
Sustainable management of living and natural resources 300 351 651
Sustainable water and wastewater management – 215 215
Total green finance mobilised 10,747 29,155 39,902
Social finance mobilisation themes
Oct 2024–Sep 2025
$m
Jan 2021–Sep 2024
$m
Cumulative progress
$m
Access to essential services 156 1,029 1,185
Access to finance 1,922 6,457 8,379
Access to water – 260 260
Affordable basic infrastructure 29 1,622 1,651
Portfolio of social projects
1
50 135 185
Total social finance mobilised 2,157 9,503 11,660
Portfolio of green and social projects
Oct 2024–Sep 2025
$m
Jan 2021–Sep 2024
$m
Cumulative progress
$m
Fund subscription facility – 479 479
MDB, DFIs and other international organisations – 534 534
Others
2
– 110 110
Portfolio of green and social projects
1
894 1,348 2,242
Total green and social finance mobilised 894 2,471 3,365
1 The underlying assets could potentially span across various green and/or social project categories aligned to those in the Sustainability Bond Framework. In such
cases, financing is temporarily reported under this portfolio category until the underlying data can be sufficiently disaggregated to allow accurate and transparent
reporting by specific project type.
2 Includes other transactions eligible for recognition as sustainable in line with our GSPF that cannot be allocated to a specific impact area.
Standard Chartered | Annual Report 202584
Scaling sustainable finance income
Our sustainable finance franchise supports clients on their
transition and broader sustainability journeys by developing
customised solutions that speak to their needs and ambitions.
The franchise generated over $1.07 billion between January
and December 2025, exceeding our target of at least
$1 billion annual income by 2025. This represents over 8.6 per
cent of our total CIB income in 2025, a year-on-year growth
rate of 9 per cent.
As a UK-headquartered international bank we work to
deploy capital across our global markets. As can be seen
onthe following pages and in our 2025 Sustainable Finance
Impact Report, we have raised over $9 billion of sustainable
liabilities across our markets, while 70 per cent of our
$23.4 billion sustainable finance asset base is located in
Asia,Africaand the Middle East. For the 12-month period
ending 30 September 2025, our green assets helped to avoid
6.94 million tCO
2
(of which 2.88 million tCO
2
achieved and
4.06 million tCO
2
expected), and our SME and microfinance
Sustainable finance income
1
Product
2025
$m
2024
$m
YOY
%
Transaction services 340 319 7%
Payments & Liquidity 197 187 5%
Securities & Prime Services 5 4 25%
Trade & Working Capital 138 128 8%
Banking 610 552 11%
Lending and financing solutions 546 507 8%
Capital market and advisory 64 45 42%
Markets 117 111 5%
Macro Trading 106 101 5%
Credit Trading 11 10 10%
Total sustainable finance income by product 1,067^ 982 9%
We generated $1.07 billion^ in sustainable finance income,
achieving our target of $1 billion annual sustainable finance
income by 2025.
Sustainable finance assets and
sustainability-linked assets
Our sustainable finance assets reflect the assets on our
balance sheet generated as a result of this green, social and
sustainable financing activity, and it is against these assets
that we raise sustainable liabilities. Sustainability-linked assets
and transition assets are not included within this assetbase.
The Group’s sustainable finance asset base increased
by1percent to $23.4 billion between October 2024 and
September 2025. This reflects the level of maturity of our
sustainable finance business, with significant replenishment
of assets during the year, with new assets across a range
ofgreen and social categories under our Sustainability Bond
Framework. CIB sustainable finance assets contribute to, but
are not the sole component of, sustainable finance income.
Sustainable finance income also comprises income generated
from off-balance sheet financial products, on both a transaction
basis and for our pureplay clients, and from Transition
Finance,Sustainability-Linked products and Impact-labelled
transactions. As such, growth in sustainable finance income
isnot linked solely to the sustainable finance asset balance.
Read more on our sustainable finance metrics at
sc.com/gspf
The majority of our sustainable finance asset base
($17.0 billion of the $23.4 billion) is made up of financing
togreen projects such as renewable energy projects, green
real estate and clean transportation, such as electric rail.
Oursocial finance assets make up $5.8 billion of the total
sustainable finance asset pool and encompass categories
such as healthcare, education and access to finance in
developing markets. The remaining assets ($0.6 billion of the
$23.4 billion) span across both green and social categories,
including renewable energy, sustainable water and
wastewater management, and access to essential services.
This year select impact metrics from our sustainable finance
assets received limited assurance from EY for the first time.
These are noted with a caret symbol (^) within the sustainable
finance assets tables.
Sustainable finance assets are represented as gross loans and
advances held at amortised cost, prior to credit impairment.
Read more in our Sustainable Finance Impact Report at
sc.com/sfimpactreport
business enabled 32,580 loans to SMEs and enabled over one
million microfinanceloans.
In 2025, we continued to develop our sustainable finance
product suite, with over 40 product variants as set out in our
GSPF. Independently assessed by Morningstar Sustainalytics,
a globally recognised provider of ESG research, ratings and
data, our framework is reviewed annually to reflect changes
in market trends and industry standards.
Our pureplay clients are also key to achieving our sustainable
finance goals. These are companies whose activities align
with those in our GSPF or in our TFF. Their significance lies
intheir ability to deliver credible and robust impact, driven
bythe inherent green and socially sustainable nature of
theirbusiness models and operations, or their critical role
insupporting and/or enabling the transition.
Our sustainable finance income is prepared on an underlying
basis and includes client income generated from our
sustainable finance product suite net offunding costs, as
wellas from clients recognised as green, social, sustainable
ortransition pureplays.
1 Values noted with a caret symbol (^) are subject to independent limited
assurance by EY. The report is available at sc.com/sustainabilitylibrary.
Annual Report 2025 | Standard Chartered 85
Sustainability review
Green finance assets
1,2
Theme
Sept 2025
$m
Sept 2024
$m SDGs Key impact reported³
Clean transportation* 1,790 1,929
6,736 tCO
2
achieved and
expected GHG emissions
avoided
Electric vehicles (EVs) 742 710
EV battery manufacturers 381 622
Manufacturing of specialised component partsofEVs 241 147
Rail 396 450
Several clean transportation projects 30
Climate change adaptation* 1 3
Energy efficiency* 204 141
64,915 tCO
2
achieved and
expected GHG emissions
avoided
LED lighting 98 92
Modernisation of broadband network 105 46
Smart meters – 3
Several energy efficiency projects 1 –
Eco-efficient products 26 37
Green buildings* 8,030 8,816
67,049 tCO
2
achieved and
expected GHG emissions
avoided
Green buildings 4,701 5,554
Green mortgages 3,329 3,262
Pollution prevention and control 37 157
8,701 tCO
2
achieved
andexpected GHG
emissions avoided
Portfolio of green projects 334 436 Multiple
3 tCO
2
achieved
andexpected GHG
emissions avoided
Renewable energy* 6,120 5,498
5,990,151 tCO
2
achieved
and expected GHG
emissions avoided
Transmission lines 84 174
Wind and solar 424 528
Hydropower 72 24
Manufacture of components for renewable
energytechnology 988 954
Solar 2,037 1,618
Waste to energy 201 239
Wind 2,076 1,534
Energy storage 147 130
Green hydrogen 33 19
Advanced biofuels from waste 40 –
Mixed renewables 18 278
Sustainable management of living and natural resources 277 249
523,869 tCO
2
achieved and
expected GHG emissions
avoided
Sustainable water and wastewater management 216 127
Total green assets 17,035 17,393 Multiple
6,661,424 tCO
2
achieved
and expected GHG
emissions avoided
Portfolio of green and social projects
4
576 392 Multiple
Sustainable finance
* Categories denoted with an asterisk are considered to be climate related.
Standard Chartered | Annual Report 202586
Social finance assets
1,2
Theme
Sept 2025
$m
Sept 2024
$m SDGs Key impact reported³
Access to essential services 342 338
Education infrastructure – universities 1 6
Healthcare infrastructure – hospitals 162 230
Provision of supporting healthcare-related
products andservices 179 95
Education loans – 7
Access to finance 4,361 4,050
Several services that support access to finance 283 –
SME lending 3,494 3,467 32,580 SME loans enabled
Microfinance 584 583
1,045,211 microfinance
loansenabled
Affordable basic infrastructure
5
1,001 1,119
Clean cookstoves 2 –
277,093 tCO
2
achieved
andexpected GHG
emissionsavoided
Desalination 73 67
Public transportation 1 –
Telecommunications/internet connectivity 653 879
Water supply 81 53
Water purification 1 –
Road infrastructure 190 120
Affordable housing 68 –
Food security 11 14
Portfolio of social projects
4
51 25 Multiple
Total social assets 5,833 5,547 Multiple
Total green and social finance assets 23,444^ 23,332 Multiple
6,938,517 tCO
2
achieved
andexpected GHG
emissionsavoided^
1,045,211 microfinance
loansenabled^
32,580 SME loans enabled^
Sustainability-linked assets
6
Sept 2025
$m
Sept 2024
$m
Total sustainability-linked loans
7
5,435 6,619
Total sustainability-linked assets 5,435 6,619
1 Amounts included in the table are as at September 2025 and September 2024 and are aligned to the Group’s Sustainable Finance Impact Report available
atsc.com/sfimpactreport.
2 Values noted with a caret symbol (^) are subject to independent limited assurance by EY. The report is available at sc.com/sustainabilitylibrary.
3 Key impact reported includes impacts from assets that are both operational and under construction and therefore reflects a combination of annual achieved and
expected outcomes over the reporting period. The metrics presented in this column are limited to the three impact metrics that are subject to independent limited
assurance by EY. For a broader set of impact metrics across environmental and social categories, please refer to our 2025 Sustainable Finance Impact Report.
4 The underlying assets could potentially span across various green and/or social project categories aligned to those in the Sustainability Bond Framework. In such
cases, financing is temporarily reported under this portfolio category until the underlying data can be sufficiently disaggregated to allow accurate and transparent
reporting by specific project type.
5 The figure has been restated from the 2024 reporting period followed a reclassification of assets. Access to water and road infrastructure has been categorised
under the affordable basic infrastructure theme to align with the classification used in the Sustainability Bond Framework. The underlying asset values remain
unchanged, the restatement reflects categorisation changes only.
6 Amounts included in the table are as at September 2025 and September 2024 and are aligned to the Group’s Sustainable Finance Impact Report available
atsc.com/sfimpactreport.
7 SLLs decreased by $1.2 billion in 2025 due to changes in market conditions, predominantly impacting SLLs in Europe and the Americas.
Annual Report 2025 | Standard Chartered 87
Sustainability review
Total green and social finance and sustainability-linked assets
1
Sept 2025
$m
Sept 2024
$m
Corporate & Investment Banking 23,026 24,098
Wealth & Retail Banking 5,853 5,853
1 Amounts included in the table are as at September 2025 and September 2024 and are aligned to the Group’s Sustainable Finance Impact Report available
atsc.com/sfimpactreport.
2 CIB climate-related assets are those generated under clean transportation, climate change adaptation, energy efficiency, green buildings, and renewable
energycategories. They are on balance sheet, drawn exposures.
3 Total CIB assets are the gross balance of CIB Loans and Advances as reported on page 239.
4 Values noted with a caret symbol (^) are subject to independent limited assurance by EY. The report is available at sc.com/sustainabilitylibrary.
5 Sustainability, green and social bonds and notes are issued against our Sustainability Bond Framework available at sc.com/sustainabilitylibrary.
6 Sustainable deposits and accounts were developed under our GSPF available at sc.com/sustainabilitylibrary.
7 Excluded from the scope of assurance due to country cross-border data constraints. All sustainable deposits are referenced on a net positive basis against
theGroup’s global sustainable finance asset base, including those excluded from the scope of the assurance. The Group’s global Sustainable Finance asset
baseisincluded in the scope of assurance.
8 SI AUM for Hong Kong as at 31 December 2024 has been restated for alignment to local regulations around sustainable products classification and reporting.
Sustainable finance
Theme
Sept 2025
$m
Sept 2024
$m
Total bond issuances outstanding
5
4,612 2,126
Of which sustainable structured notes 1,693 950
Of which green structured notes 573 60
Total sustainable term deposits
6
1,215 3,325
Total sustainable term accounts
6
1,500 1,214
Sustainable retail current and savings accounts and deposits
6
929 1,196
Sustainable liabilities (excluding other WRB sustainable deposits) subject to limited assurance 8,256^ 7,861
Other WRB sustainable deposits
6,7
782 –
Total sustainable liabilities 9,038 7,861
See sc.com/sfimpactreport for more highlights on our Sustainable Finance assets in 2025, including asset locations
Our CIB climate-related assets
2
are 8.8 per cent of total
CIBassets.
3
Our Hong Kong green mortgages balance, which
makes up the majority of our climate-related WRB assets,
is10.4 per cent of total mortgages in Hong Kong. See our
mortgages by region on page 245 and our green mortgages
inthe Sustainable Finance Impact Report at
sc.com/sfimpactreport.
Sustainable liabilities
1,4
Our sustainable liabilities reflect the liabilities on our
balancesheet generated under labelled sustainable finance
instruments. These include Sustainability, Green and Social
bond and note issuances, sustainable term deposits (through
CIB and WRB), and sustainable cash accounts (CIB and
WRB). Sustainable finance liabilities reference our sustainable
assets, as set out above.
The Group’s total sustainable finance liabilities balance
increased by 15 per cent to $9 billion between October 2024
and September 2025. This is due to a significant increase
inthe volume of sustainable and green structured notes
issuances as well asgrowth in client interest across CIB
andWRB in our sustainable account proposition. This offset
the decline inthesustainable deposits balance.
Standard Chartered offers a wide-ranging suite of
sustainable finance liabilities products. The sustainable
liabilities that the Group raises are referenced against the
Group’s global sustainable finance asset base. Liabilities are
not directly linked to specific assets and are included in the
wider Standard Chartered Group balance sheet. As a Group,
we will only raise up to 80 per cent of the value of our total
sustainable finance assets in sustainable finance liabilities –
thisenables us to always maintain a buffer, and maintaining
thisbuffer can require us to originate incremental sustainable
finance assets. These liabilities products allow clients to have
their capital referenced on a net positive basis against assets,
whether existing as of the date of the transaction or in the
future, that we deem as sustainable in accordance with our
externally verified Sustainability Bond Framework.
Wealth & Retail Banking sustainable investing
The Group had $1,984 million sustainable investing (SI) assets
under management (AUM) at 31 December 2025 (a 26 per
cent increase from $1,572 million
8
at 31 December 2024).
SI AUM comprises of AUM held by our clients in SI-labelled
mutual funds, exchange traded funds and structured
products that are part of our Group SI universe. In markets
where there is regulation around sustainable products
classification and/or reporting, the reporting of AUM will
follow accordingly.
Further information on our Sustainable Investments universe
can be found at sc.com/sustainable-investing
Standard Chartered | Annual Report 202588
Green and Sustainable
ProductFramework (GSPF)
Our GSPF governs the activities that we as an
organisation classify as ‘green’, ‘social’ and ‘sustainable’.
It sets out our approach to mitigating greenwashing
riskacross our product suite and defines the themes and
activities that we consider eligible for green, social and
sustainable financing. The Framework is informed by
international market guidelines and standards on green
and sustainable finance, including among others, the
Climate Bonds Standard, EU Taxonomy for sustainable
activities and the Green and Social Loan Principles.
Independently assessed by Morningstar Sustainalytics, our Framework is reviewed
annually with theaim of ensuring it remains in line with the latest industry
standards. Our GSPF received a ‘Significant’ rating from Morningstar Sustainalytics
for its Sustainability Contribution. 2025 updates to the GSPF included expansion
ofthe green activities to add new certifications for green buildings and sustainable
agriculture as well as circular economy solutions. Thresholds for non-waste
bioenergy production and energy efficiency improvements were also updated.
Revisions to oursocial activities included refined criteria to strengthen targeting
and include areas of social impact such as mental health and eldercare facilities.
Sustainability Bond
Framework
Our SBF provides the basis for
theissuance of green, social and
sustainability bonds and notes,
drawing on the activities that we view
as ‘green’, ‘social’ and ‘sustainable’.
It governs our sustainable debt
products issued by the Group, providing
transparency and guidance on the
useof proceeds, process for project
evaluation and selection, management
ofproceeds and reporting, as aligned
with the ICMA Sustainability Bond
Principles. It has received a Second
PartyOpinion from Morningstar
Sustainalytics, which rated the SBF
as‘Aligned’ and ‘Significant’.
Our Sustainable Finance Frameworks
Governance over sustainable finance products
and frameworks
The Group has Product Programme Guidance documents in
place that underpin each Sustainable Finance product that
weoffer, signed off by a delegate of the Sustainable Finance
Governance Committee (SFGC) following approval of the
product construct by the SFGC.
The SFGC is our forum for reviewing Sustainable Finance
products and frameworks, and derives its authority from the
Group Responsibility and Reputational Risk Committee
(GRRRC). The GRRRC is the ultimate approval body for all
ofour Sustainable Finance Frameworks. Membership of the
SFGC is drawn from the CSO organisation, Legal, Compliance,
and ESG and Reputational Risk. The SFGC is our foremost
committee for managing greenwashing risk in sustainable
finance product design and labelling.
Any transaction or entity recognised for the positive
environmental and/or social impact it generates under our
Sustainable Finance Frameworks must meet our minimum
expectations as set out the Group’s Environmental and Social
Risk Management Framework and Position Statements.
Assessments at client level, and where applicable, transaction
level, must be in place before a transaction or entity can
beconsidered to be within our sustainable finance metrics
inorderto ensure any potential trade-offs with other
objectivesare considered.
For more, including the Sustainalytics Sustainability
Contribution Assessment and Second Party Opinion, visit
sc.com/sustainabilitylibrary
For more information on our Green and Sustainable Product
Framework, visit sc.com/gspf
For more information on our Sustainability Bond Framework
visit sc.com/sustainability-bond-framework
For more information on our Transition Finance Framework
visit sc.com/transition-finance-framework
Transition Finance Framework (TFF)
Our TFF sets out the assets and activities that qualify
under a‘transition’ label.
We have outlined our approach to defining and
governing transition finance in our TFF. This framework
has been informed by the IEA Net Zero Emissions 2050
scenario and sets out several principles that help guide
our clients to a low-carbon pathway. It is reviewed
annually for alignment with thelatest available science
and industry standards. Thisyear we published the
fourth iteration of the TFF. Thisincluded a new category
for ground transportation and provided updates to
aviation, shipping and electricity generation,
transmission and storage categories. Thresholds were also introduced for the share
of scrap metal required foreligible steel and aluminium production.
Annual Report 2025 | Standard Chartered 89
Sustainability review
Climate
In 2025, we reached our net zero target for Scope 1 and 2 emissions
1
, marking
asignificant milestone in our journey to decarbonise our operational footprint.
We aim to reach net zero in our financed emissions by 2050. Our net zero
roadmap sets out our key goals, and the progress we have made.
Our global footprint combined with our particular focus on Asia,
Africa and the Middle East informs our unique understanding of
the complexity associated with reaching our targets across our
financed and facilitated emissions, including a heightened focus
on the security and resilience of our markets as they respond to
greater climate change-induced uncertainty. As a financial
institution, the Group has an important role to play in supporting
our clients and markets as they navigate this complexity, while
driving and encouraging change in the real-world economy.
Published in 2025, the Group’s Transition Plan outlines our
approach to delivering this change and our aim to achieve net
zero by 2050, demonstrating to clients, suppliers, clients, and
other key stakeholders that we have a clear plan to meeting the
commitments we have made. The Transition Plan consolidates
and expands upon the disclosures provided in this report, the net
zero roadmap and the Net Zero Methodological White Paper.
The Transition Plan has been developed considering guidelines
provided by the Transition Plan Taskforce and GFANZ
frameworks. It sets out:
• Our current practices: The evolving business practices that
underpin our commitment to net zero by 2050.
• The control environment: The governance framework and
description of controls over our net zero calculations, target
management, client engagement, and decision-making
processes, designed to maintain oversight, accountability,
and alignment with the Group’s net zero objectives.
• How we are embedding net zero: The measures and
initiatives undertaken to integrate net zero considerations
into the client lifecycle. How we are systematically integrating
and operationalising sustainability into client engagement
strategies, with the aim of driving measurable outcomes.
Our Transition Plan informs our Group strategy and decision-
making by incorporating our clients’ decarbonisation maturity as
a key consideration when transacting with our transition priority
clients (TPC). This aligns financing decisions with our clients’
ability and commitment to decarbonise. It helps us identify the
clients who need us the most in their transition to net zero, which
in turn enables us to support them with sustainable finance for
their transition journeys. This contributes to our $300 billion
mobilisation target and provides the Group with more
opportunities to earn sustainable finance income. Significant
areas where net zero has been implemented as part of the
Group’s strategy include:
• Within CIB clients operating in high-emitting sectors, wehave
identified the population of key existing-to-bank TPCs whose
emissions reductions will be essential to enable us to meet our
2030 interim netzero targets. TPCs are defined as the Group’s
most significant clients across the high-emitting sectors.
Onceshortlisted as a TPC, we perform an assessment of the
client’s decarbonisation maturity to tailor theapproach to
assisting them with their transition tonetzero.
• For each of the actively managed high-carbon sectors,
theNet Zero team applies category-specific screening
toassign prospective transactions with an Aligned,
Marginally Misaligned, Misaligned or Grossly Misaligned
rating. The ratings and considerations of assessed
transactions are communicated to the respective originating
business areas at the Group’s Capital Allocation Forum
meetings and is factored into the recommendations and
structuring of the transaction.
• The appointment of Client Coverage sector leads has
increased the level of accountability and enables a clear
point of contact to effectively co-own the internal validation
process with the Net Zero team early during the client
onboarding process.
• On a quarterly basis for internal portfolio management,
wemeasure our emissions for the sectors that require
activeportfolio steering against our risk appetite metrics.
Thequarterly review is completed based on the Group’s
latestquarterly exposures and latest available emissions
andproduction information. The risk appetite metrics
atsector level feed into an overall Board-level risk appetite
metric, and monitor if any sector is in breach of our desired
target pathways.
Read more on sector specific strategies to achieving our
interim net zero targets in our Transition Plan andNet Zero
Methodological White Paper at sc.com/sustainabilitylibrary
Key climate updates during the year
During the year, the Group achieved net zero in our
Scope 1 and Scope 2 emissions, having taken all
possible steps to reduce residual emissions in line
with ISO IWA 42.
Read more on page 92
During 2025, the Group analysed the intensity
ofourupstream oiland gas portfolio for methane.
We found our portfolio compares favourably to
theIEA NZ Emissions 2030 methane target.
Read more on page 107
We are predominantly on track for our 12 interim
high-carbon, sector-financed emission targets.
Read more on page 99
1 See pages 92–95 for details.
Standard Chartered | Annual Report 202590
In 2025, we reached our net zero target for Scope 1 and Scope 2 emissions, marking a significant milestone
inour journey to decarbonise our operational footprint. We aim to reach net zero emissions in our financed
emissions by 2050. To help us remain on track, we have set short and medium-term objectives and
quantifiable targets to manage and report on our progress on an annual basis. As part of that, we have set
interim 2030 targets for all the highest-emitting sectors in the Group’s portfolio.
• Launched our roadmap to net zero by 2050, including
interim targets and a supporting methodology
• Announced plans to mobilise $300 billion
in sustainable finance by 2030
• Published our inaugural TFF
2021
• Developed financed emissions baselines
and 2030 targets for the aviation, shipping and
automotive manufacturers sectors
• Joined Partnership for Carbon Accounting
Financials (PCAF)
2022
• Announced our enhanced oil and gas absolute
financed emissions target
• Updated our power and steel sector baselines and
targets moving from a revenue-based intensity
metric to a production-based intensity metric
• Developed financed emissions baselines and set
interim 2030 targets for four additional sectors:
cement, aluminium, residential mortgages and
commercial real estate, bringing the total number
ofnet zero targets set for high-emitting sectors to 11
• Financed emissions baselines and sectoral progress
against targets, where indicated, assured for the first
time by Ernst & Young
• Calculated the Group’s facilitated emissions from
debt capital markets following the release of the final
PCAF guidance (published in December 2023) under
both the 33 per cent and 100 per cent weighting
factors
• Published the Group’s updated Net Zero
Methodological White Paper
2023
• Measured and disclosed an agriculture baseline and
target, the final high-emitting sector recommended
by the Net-Zero Banking Alliance (NZBA)
• Became the first Global Systemically Important Bank
(GSIB) to have measured and disclosed a baseline
and target for all 12 high-emitting sectors
recommended by the NZBA
• Set a baseline and target for our facilitated emissions
portfolio focusing on the oil and gas sector, which
currently makes up the majority of emissions within
our facilitation portfolio
2024
• Issued the Group’s first Transition Plan set out with
reference to the Transition Plan Taskforce and
GFANZ guidance
• Achieved net zero in our Scope 1 and 2 emissions
1
• Calculated the Group’s financed methane emissions
intensity for the upstream oil and gas sector
• Exceeded our target of at least $1 billion sustainable
finance annual income by 2025
2025
• We expect to have substantially reduced our
exposure to the thermal coal mining sector in line
with our Position Statements
• Aim to meet the Group’s financed and
facilitated emissions interim targets set for
high-emitting sectors
2030
• Aim to become net zero in our financed emissions
2050
2032
• Targeted end date for legacy direct thermal coal mining financing globally in line with our Position Statements
1 See pages 92–95 for details.
Our net zero roadmap
Annual Report 2025 | Standard Chartered 91
Sustainability review
Our emission sources
We reached our net zero target for Scope 1 and Scope 2 emissions and aim to reach net zero in our financed emissions by 2050.
We focus on three areas to reduce emissions across our value chain:
Topics
Size of
emissions (%) Emissions sources Learn more
Our
operations 0.01%
Scope 1 and Scope 2:
Emissions from the combustion of fuels in owned or controlled sources e.g.boilers, generators
and vehicles, refrigeration and air conditioning equipment and the purchase of electricity Page 93
Our suppliers 0.86%
Scope 3 Categories 1–14:
Emissions from our upstream and downstream supply and value chain Page 96
Our clients 99.13%
Scope 3 Category 15:
Emissions from transacting with our clients Page 97
Our carbon accounting is calculated and reported with reference to the ‘GHG Protocol: A Corporate Accounting and Reporting
Standard (2004)’ and PCAF Standards. Following the materiality assessment performed by the Group and outlined in the
section on Materiality on page 72, Scope 2 and Scope 3 categories 1, 6 and 15 were deemed material when using ISSB
educational materials on ‘Sustainability-related risks and opportunities and the disclosure of material information’. For
consistency and transparency in our net zero journey, we will continue to report Scope 1, and Scope 3 categories 2, 4, 5, 7 and 13
on a voluntary basis. Thefollowing tables summarise our most recent performance:
Scope 1 and 2 emissions
2025
(tCO
2
e)
2024
(tCO
2
e)
2023
(tCO
2
e)
Scope 1 emissions
1,3
5,792 7,696 8,488
Scope 2 emissions
2,3
0 17,272 26,246
Total Scope 1 and 2 emissions 5,792 24,968 34,734
Scope 3 supply chain emissions⁴
2025
(tCO
2
e)
2024
(tCO
2
e)
2023
(tCO
2
e)
Category 1: Purchased goods and services
5
251,761 319,078 346,819
Category 2: Capital goods 41,799 43,716 42,707
Category 4: Upstream transportation and distribution (including SAF reductions)
6
16,904 27,268 24,125
Category 5: Waste generated in operations 349 379 520
Category 6: Business travel (air travel) 52,375 53,326 48,046
Category 6: Business travel (miscellaneous other than air travel) 8,446 16,420 8,918
Category 7: Employee commuting
7
60,348 81,065 71,228
Category 8: Upstream leased assets (data centres)
3,12
4,397 4,186 4,431
Category 13: Downstream leased assets (real estate)
8
4,799 7,119 7,898
Total Scope 3 supply chain emissions 441,178 552,557 554,692
Scope 3 Category 15: Investments
9
2025
(tCO
2
e)
2024
(tCO
2
e)
2023
(tCO
2
e)
Financed emissions
10
33,900,000 35,600,000 42,330,000
Facilitated emissions 3,080,000 1,761,000 3,007,000
Scope 3 Category 15 emissions excluding agriculture sector Scope 3 emissions
10
36,980,000 37,361,000 45,337,000
Agriculture sector Scope 3 emissions
11
13,900,000 10,300,000 –
Total Scope 3 category 15 emissions
10
50,880,000 47,661,000 45,337,000
Climate
1 As we aim to improve our emissions measurement and reporting year-on-year, we have
included owned vehicle fleet emissions in our Scope 1 data since 2024 (733 tCO
2
e in 2025
and 1,340 tCO
2
e in 2024) and fugitive emissions since 2023 (3,035 tCO
2
e in 2025, 3,877 tCO
2
e
in 2024 and 5,266 tCO
2
e in 2023).
2 Scope 2 indirect emissions have been calculated using the market-based approach
assetout in the GHG Protocol. Location-based emissions are disclosed on page 209.
3 Our Scope 1 and 2 emissions and Scope 3 Category 8: Upstream leased assets (data
centres) emissions calculations for the most recent reporting year were independently
assured by Global Documentation Ltd. The assurance scope includes the owned vehicle
fleet and fugitive emissions.
4 Scope 3 Category 10, Category 11, Category 12 and Category 14 arenot relevant for the
Group due to the nature of our business, products and services and operations, such that
their emissions are not deemed material. Emissions from Scope 3 Category 2, Category 3,
Category 4, Category 5, Category 7, Category 8, Category 9 and Category 13 are also not
deemed material.
5 We have restated our Scope 3 Category 1: Purchased goods and services emissions data
forthe 2024 reporting year from 345,193 tCO
2
e to 319,078 tCO
2
e due to one of our largest
suppliers (by spend) restating their publicly reported emissions. The supplier restatement
isa result of improved data accuracy within its calculations.
6 We recognise the role of sustainable aviation fuel (SAF) as a lever in lifecycle GHG emissions
of logistics emissions. In line with emerging international standards and guidance, we
account for the use of SAF in our emissions calculations by applying its verified lifecycle
carbon intensity compared to conventional jet fuel for our logistics emissions. Ouremissions
reductions from SAF (through The Book and Claim Model) are only recognised when
supported by robust certification, traceability, and sustainability criteria toavoid double
counting and ensure genuine climate benefit. We will continue to monitor evolving
standards to align with best practice as frameworks mature. Category 4 emissions for 2025
were 17,467 tCO
2
e when excluding the purchase of SAF.
7 Category 7: Employee commuting includes both emissions from commuting (28,834 tCO
2
e)
and emissions associated with home office working (31,484 tCO
2
e).
8 Category 13: Downstream leased assets are leased spaces within locations where the Group
iseither the owner or main tenant of the building.
9 Category 15: Investments includes financed and facilitated emissions and are measured
ona one to two-year lag based on the availability of third-party and client data.
Facilitatedemissions are calculated on a three-year rolling average. Category 15 emissions
are rounded to the nearest 1,000 tCO
2
e.
10 Prior year total financed emissions have been restated following a restatement in the oil
and gas sector absolute emissions. The prior period has been restated to apply the Group’s
methodology of only counting Scope 3 emissions on upstream production activities (including
diversified and integrated counterparties). There was no impact on the baseline year.
11 The baseline emissions for the agriculture sector are calculated using the Implied
Temperature Rise (ITR) method. Agriculture financed emissions includes Scope 3 emissions,
which are complex in nature due to the vast value chain, operations of our clients within this
sector and data availability limitations. The decision to include Scope 3 emissions of the
Group’s agriculture clients was intentional as this has the most real-world impact by
allowing the Group to engage with our clients to decarbonise both their operations and
their supply chains. On an absolute emissions basis the agriculture portfolio has 1.4 MtCO
2
e
in its Scope 1 and 2 emissions and a further 13.9 MtCO
2
e in its Scope 3 emissions, giving the
sector 15.3 MtCO
2
e in total.
12 Emissions from third party co-located data centres have been reclassified to Scope 3
category 8 from Scope 3 category 1. We re-evaluated the nature of our lessee relationship
with these assets and, in line with the GHG Protocol, believe this data aligns more closely
toScope 3 category 8. We have reclassified these emissions in our 2023 and 2024
comparatives, which were already reported separately from other Category 1 emissions.
Standard Chartered | Annual Report 202592
Our operations
This section covers our Scope 1 and Scope 2 emissions
asdefined on page 92.
Our approach to managing our
environmentalfootprint
The Group defines net zero in line with ISO IWA 42 as a
condition in which human-caused residual GHG emissions
arebalanced by human-led removals over a specified period
and within specified boundaries, whereby residual emissions
are those GHG emissions that remain after taking all possible
actions to implement emissions reductions. This approach
aligns with the principles outlined in the GHG Protocol.
In 2025, we achieved our net zero target across Scope 1 and 2
emissions, marking a significant milestone. We reduced our
carbon footprint by 96 per cent from a 2018 baseline of 148
ktCO
2
e to just 6 ktCO
2
e. This achievement reflects the steps
we have taken to decarbonise our real estate portfolio and
aligns with the overall Group’s net zero agenda. Residual
emissions that persist despite our rigorous efforts to
minimisethem are counterbalanced by purchasing and
retiring carbon creditsasdescribed in the carbon credits
section below. Movingforward weremain committed
tosustaining our net zero commitment for Scope 1 and 2
emissions and continue to strengthen measures to support it.
Total carbon emissions
This milestone reflects several years of focused efforts backed by the following strategic levers:
Strategic levers Outcomes
Energy efficiency
improvements
• Leveraged efficiency measures across our property portfolio to actively reduce our
energy consumption
• Reduced our reliance on non-renewable energy sources by replacing old and inefficient
heating, ventilation, air conditioning and lighting systems with efficient ones as a part
of our annual lifecycle replacement programme
• Reduced our energy intensity by 45 per cent from our 2018 baseline
• Currently in the process of rolling out smart meters across key sites to optimise our
energy performance
Renewable energy adoption • Leveraged permanent renewable energy by signing long-term Power Purchase
Agreements (PPAs) in crucial markets such as Singapore, Taiwan and the Philippines
• Implemented onsite solar installations across 52 sites in 17 markets, reducing grid
dependency and making up 2 per cent of our total electricity consumption
Purchase energy attribution
certificates (EACs)/renewable
energy certificates to bridge
market gaps where direct
renewable energy
procurement is not feasible
• Achieved 100 per cent renewable energy for Scope 2. In securing EACs we ensure
compliance to RE100 requirements where possible
• In markets where RE100 eligible EACs are not available, we purchased verifiable EACs,
ensuring transparency, consistency and alignment with our sustainability goals
• Read more about RE100 compliance on page 94
Leveraging Green Building
Certification to improve energy
performance and reduce
Scope 1 and 2 emissions
• Certified nearly 130 buildings across our office and branch portfolio to Leadership in
Energy and Environmental Design (LEED), WELL or other prominent local certification
programmes
• Integrated sustainability principles into our building designs and operations to enhance
energy efficiency, reduce waste and promote the use of sustainable materials
Leveraging green leasing
principles
• As part of our ongoing effort to embed sustainability into our operations, we are
working to integrate green leasing principles into our corporate real estate strategy
aligning with sustainability goals and fostering collaboration with asset owners
Read more on the list of emissions factors used in our calculations on page 13 of our Environmental Reporting Criteria document at
sc.com/reportingcriteria
160
140
Total carbon emissions (ktCO
2
e)
100
120
2018 2019 2020 2021 2022 2023 2024 2025
80
60
40
0
20
Scope 1
Scope 2
139 9
142
148
147
114
83
118
86
5
4
3
47 2
26 6
25 17 8
66
49
32
Annual Report 2025 | Standard Chartered 93
Sustainability review
Progress in 2025
Scope 1
Our Scope 1 emissions primarily originate from our owned
vehicles, fugitive emissions, and fuel consumption used
inbackup diesel generators, which are utilised during grid
power disruptions. We are focused on reducing our reliance
on fossil fuels and optimising carbon emissions. To optimise
fuel consumption, we have enhanced efficiency by reducing
the capacity of our generators as needed. In 2025, in the
Indiamarket, we took significant steps by replacing several
diesel generators with natural gas gensets, reducing our
dependence on high-carbon fossil fuels. Progressively,
weintend to adopt renewable diesel in markets where
itbecomes available.
Scope 2
We have disclosed our Scope 2 GHG emissions using the
market-based calculation methodology. Our location-based
emissions are 74,591 tCO
2
e (also refer to page 209 fordetails).
All of our electricity consumption across our global portfolio
came from renewable sources in the form of PPAs, onsite
solar installations, green tariffs and renewable energy
certificates. The breakdown of this is illustrated in the
figurebelow:
Scope 2 energy mix 2025
On-site RE
PPA
Green Utility
EAC
2%
5%
5%
88%
Energy Attribute Certificates (EACs) account for 88 per
centof our renewable energy mix. We have broadened our
sourcing strategy to include Green PPAs and green utility
tariffs, which each constitute 5 per cent of our renewable
energy mix. We aim to reduce our reliance on EACs and focus
on increasing the share of more direct renewable energy
procurement mechanisms, such as PPAs and green tariffs,
when market conditions allow. Onsite renewable energy
systems, including rooftop solarinstallations, currently make
up 2 per cent of the mix.
These onsite systems reduce grid dependence and are
animportant step towards operational decarbonisation
atthe asset level.
Overall, this approach strengthens resilience, reduces carbon
emissions exposure, and future-proofs the Group’s operations
to align with global clean-energy developments.
Singapore Green Power Transition
In 2025, we transitioned our Singapore portfolio
to100 per cent green energy, marking a significant
milestone in our net zero journey. This achievement
was realised through the strategic implementation
of onsite and offsite PPAs in our head office and
securing fixed-term EACs across the portfolio.
This makes us one of the first within the Singapore
banking sector to achieve 100 per cent green energy
for our operations. As we continue to navigate
thechallenges of the renewable energy market,
thissuccess story serves as an inspiration for further
advancements in our sustainability initiatives.
RE100
Standard Chartered is a member of RE100, a global initiative
by businesses committed to sourcing 100 per cent renewable
electricity for their operations. Our RE100 performance for
2025 is 95 per cent. While we strived to achieve 100 per cent,
market maturity varies significantly by geography, which
constrains full coverage, particularly within Africa and the
Middle East (for example, Bahrain, Qatar, Botswana,
Cameroon, Côte d’Ivoire, Tanzania and Zambia). In these
markets we continue to actively monitor developments and
aim to transition to RE100 certified mechanisms as they
become available.
Moving forward, we remain committed to remain RE100
compliant in all possible markets by continuing to engage
incredible renewable energy sourcing.
Carbon credits
We have purchased and retired carbon credits to cover our
residual Scope 1 and 2 emissions for 2025 in line with ISO IWA
42, and Scope 3 emissions associated with air travel. Our
carbon credit portfolio includes a range of decarbonisation
activities as described in the table on the next page. All
residual Scope 1 and 2 emissions for 2025 are covered by
activities that result in removal of carbon dioxide. Scope 3
emissions associated with air travel are covered by activities
that result in both removal and avoidance of carbon dioxide.
The carbon credits we source are issued by carbon standards
approved by the Group’s relevant governance committees
inrelation to carbon integrity, environmental and social
safeguards and other relevant criteria. For 2025, the relevant
carbon credits were issued by Verra, Gold Standard and
Climate Action Reserve and followed one of the following
methodologies:
Climate
Standard Chartered | Annual Report 202594
Waste
We continue to push for 90
per cent waste avoidance
from landfill by 2030. Overall,
this commitment translates
tobetter waste segregation
and management through
awareness programmes. As at
the end of the 2025 reporting
year, we have reduced our
overall waste generated
by49per cent from our 2018
baseline and achieved 74 per
cent avoidance from landfill.
Across branches, we continue
to drive initiatives to reduce
single-use plastic in operations, demonstrating how everyday
actions can make a measurable impact. In alignment with
our Zero Waste goals, we launched an internal Single-Use
Plastic Free (SUP) certification programme aimed at
eliminating single-use plastic items from our operations.
Sincethe program began in 2020, over 370 sites have
achieved SUP certification.
Percentage of waste
diverted from landfill
In our commitment to sustainability and environmental
stewardship, key sites in India, Poland and Kenya have been
awarded the highest level of TRUE Zero Waste Platinum
Certification for diverting more than 90 per cent of waste
from landfill. This recognition underscores our dedication to
reducing waste, improving resource efficiency, and fostering
sustainable practices across our global operations.
Water
We slightly improved our water efficiency metric by 5 per cent
from 0.53 kilolitres per square metre in 2024 to 0.49 kilolitres
per square metre in 2025. This is a 54 per cent reduction
fromour 2018 baseline. While water availability is a growing
challenge in many of our markets, we did not face any issues
sourcing potable water in 2025. We seek to take a responsible
approach to managing water use across the Group.
For detailed environmental performance data see
ourESGdata pack at sc.com/sustainabilitylibrary
Read the principles and methodology for measuring
ourenvironment data at sc.com/environmentcriteria
Read the independent assurance statement relatedto
Scope 1 and 2 GHG emissions at sc.com/sustainabilitylibrary
80%
70%
Diversion from landfill (%)
50%
60%
2023 2024 2025
40%
30%
20%
0
10%
52%
61%
74%
Methodology
Nature based or
technological based
Removal
oravoidance Scopes covered
Agriculture, Forestry,
andOther Land Uses
Nature based Removal Scope 1 and 2
Energy efficiency Technological based Avoidance Scope 3 emissions associated with air travel
Soil enrichment Nature based Avoidance Scope 3 emissions associated with air travel
We do not use an internal transfer price for carbon and instead use the average purchase price for our carbon credits.
Embedding sustainability into ournew Chennai office
Our flagship office in Chennai, India, saw sustainability
embedded right fromthedesign, focusing on embodied
carbon, local materials sourcing and waste reduction
measures. Theprojectwas built with Leadership
inEnergy and Environmental Design (LEED) and WELL
standards inmind. It houses around 17,000 employees,
incorporating strong sustainability commitments
including eco-friendly materials and waste
reductionprogrammes.
Annual Report 2025 | Standard Chartered 95
Sustainability review
Our suppliers
This section covers our Scope 3 Category 1–14 emissions.
Our approach to managing impacts in our
upstream value chain
The Supply Chain Management team provides procurement
services internally to drive commercial value generation
andmanage sustainability and supply chain risks. Proactive
supplier engagement and data quality remain a key focus
ofour supply chain sustainability strategy as we continue to
engage constructively with suppliers to increase transparency
and accountability around climate impact, and to promote
emissions reductions.
Supplier Charter and engagement
Through our Supplier Charter, we set out the principles that
Standard Chartered expects from its suppliers, and those
within the suppliers’ sphere of influence that assist them
inperforming their obligations for us. These principles have
been drawn from the international organisations and
conventions of which we are members or signatories.
In 2025, we advanced our commitment to building a resilient
and responsible supply chain by reducing our upstream
Scope 3 emissions
1
by 20 per cent. We have reported Category
4 emissions considering the use of SAF reductions for the first
time in 2025 (read more on page 92). Our Category 7 emissions
declined by 26 per cent due to a lower total employee count
for the year and lower office attendance across our sites.
Further upstream Scope 3 emission reductions are attributed
to an increase in more accurate supplier-specific emissions
data and larger suppliers reporting lower emissions.
We continue to prioritise collaboration with suppliers actively
pursuing decarbonisation. As of 2025, 54 per cent of our
supplier spend is now with suppliers with science-based
emissions reduction targets in place.
2
Emissions from business air travel remained broadly
consistent since 2024, reflecting continued adherence
totheGroup’s travel guidelines. We continue to purchase
high-quality carbon credits for our air travel emissions as
described on page 94. In 2025, we reviewed our air travel
emissions calculation methodology and, from January 2026,
we will uplift our calculations in line with Department for
Environment, Food and Rural Affairs (DEFRA) emissions
factorupdates and external assurance recommendations
toinclude well-to-tank emissions.
We continue to build supply chain sustainability knowledge
within our supply chain teams. In 2025, we hosted a live online
learning session for all internal procurement colleagues and
launched an online learning programme to support our
procurement colleagues to integrate sustainability into their
everyday supply chain processes. In 2026, we aim to evolve
our learning programme to support our suppliers directly and
Climate
1 All vendor emission estimations follow the GHG Protocol guidance and use a hybrid of primary and secondary data. All emissions (including air travel) are reported
on a one-year lag (e.g. for the 2025 annual reporting cycle, the data reported was from January 2024 to December 2024) and the methodologies are outlined in our
Environmental Reporting Criteria at sc.com/reportingcriteria. This is in line with the CIB downstream emissions estimation calculations.
2 Spend includes Scope 3 Category 1: Purchased goods and services and capital goods suppliers excluding non-addressable spend. Addressable spend is defined
asexternal costs incurred by Standard Chartered in the normal course of business where Supply Chain Management has influence over where the spend is placed.
It excludes costs such as government and brokerage fees, rates and taxes. It includes Cloud data centres but excludes onsite and co-location data centres, which
are captured under Scope 2 and Scope 3, Category 8, respectively.
focus on integrating sustainability into all our supplier
processes, including a sustainability weighting in our
tenderprocess, where appropriate.
In 2025, we made significant strides in transitioning our
business car fleet to more sustainable options, starting
withuplifting 100 per cent of our Korean fleet to hybrid.
Read more on our emissions calculations in our
Environmental Reporting Criteria available at
sc.com/environmentcriteria
Limitations
Supply chain emissions calculations are evolving and remain
heavily dependent on supplier-provided information. As part
of our continuous improvement process, we will continue to
work with our suppliers on data quality and our own internal
stakeholders to continually improve and enhance our Scope 3
emissions reporting accuracy. This includes the accuracy
ofindividual supplier category mapping to the appropriate
emissions calculation factor. As underlying data evolves,
wewill refine our methodology to improve accuracy and align
to evolving industry standards.
Our Supplier Charter can be viewed at
sc.com/suppliercharter
Read more on how we engage with suppliers on page 41
and see our supplier spend data on page 453
GoGreen with DHL
We’ve continued to partner with one of our largest
logistics providers, DHL, to cut our air freight
emissions through adopting SAF. Through DHL’s
GoGreen Plus programme, we have embedded
athree-year glidepath to 100 per cent emission
reduction of the emissions related to DHL Express
Airshipping using SAF by 2028. We hope this will
transform our global packaged logistics into a model
for decarbonised supply chains.
Standard Chartered | Annual Report 202596
Weintend to achieve this through client engagement
andthe continued provision of financial services, including
sustainable finance and transition products, which are aimed
at supporting our clients’ decarbonisation efforts and, in turn,
reduce emissions in our lending portfolio.
The Group’s targets have been informed by pre-eminent,
scientific forward-looking scenario providers. This includes the
IEA for energy sectors, the Mission Possible Partnership (MPP)
for metals and aviation and the International Maritime
Organization (IMO) for shipping.
In 2024, the Group engaged our external assurance provider
to perform an ISRS 4400 (Revised) ‘Agreed upon Procedure’
review to confirm whether our targets for thermal coal, steel,
oil and gas, power, automotive manufacturers, shipping,
cement, aluminium, and commercial real estate meet the
long-term temperature goal of the Paris Agreement, and
aremathematically accurate in reference to the third-party
science-based scenarios. Due to our footprint – with many
emerging markets and developing countries reliant on
carbon-intensive industries – our financed emissions may
increase before they decrease. However, our aim is to
remainParis-aligned for our interim targets and aligned to
ascience-based 1.5°C scientific pathway by 2050. Given our
science-based approach, we will strive to update our targets
both as the scientific community updates its reference
scenarios and as data availability improves.
In line with the PCAF standards, the Group does not recognise
carbon credits when reporting our financed emissions.
Emissions values are reported gross, exclusive of any offsets
utilised by clients.
Read the Agreed upon Procedure report on our
Intermediate Financed Emissions Targets at
sc.com/sustainabilitylibrary
2030 financed
emissions targets
Steel
Oil and gas
Power
Automotive manufacturers
ShippingAviation
Cement
Aluminium
Residential mortgages
Commercial real estate
Thermal coal miningAgriculture
2021 2022 2023 2024
Our clients
This section covers our Scope 3 Category 15 emissions
(financed and facilitated emissions).
The majority of our GHG emissions are linked to our lending
activities, known as financed emissions. We have prioritised
our efforts in the highest-emitting sectors of our portfolio, and
where working with our clients can have the greatest impact.
The Group has used the GHG Protocol and referred to
PCAFcarbon reporting standards. These standards provide
comprehensive, internationally recognised approaches
whenmeasuring and reporting our emissions to stakeholders.
Whilst there were no changes to our measurement approach
during the year, our proxy approach for determining
emissions for the oil & gas sector changed to reflect
improvements in data quality, only counting Scope 3
emissions on upstream production activities.
The labelling of our sustainable finance products through our
product frameworks also supports us in measuring, monitoring
and reporting our financed emissions. Read more on page 89
for further information on our Sustainable Finance Frameworks.
Setting science-based targets
The Group has set and disclosed science-based interim 2030
financed emissions targets for our 12 highest-emitting sectors,
being the first GSIB to do so. This includes a facilitated
emissions target for our oil and gas sector. These targets are
intended to mitigate the effects of climate change, including
transition risk, and assist the group in achieving our 2050
aspiration of being net zero in our financed emissions.
We are working across our businesses and functions, and
alongside our clients to deliver these targets, notwithstanding
the challenges presented by a material portion of our markets
not having a commitment to achieve net zero by 2050.
Annual Report 2025 | Standard Chartered 97
Sustainability review
Detailed progress against our sectoral financed emissions targets
CIB
Sector
2024
Exposure in
scope ($bn) Interim 2030 target
1
2024
2
2023
2
Baseline
year
% change
cumulative
tobaseline
Year
target set
Absolute
emissions
3
(MtCO
2
e) Physical intensity
Absolute
emissions
3
(MtCO
2
e) Physical intensity
Agriculture
4
8.2
2.4–2.6°C
(13–20%) 15.3 2.33^°C 11.5 2.96°C 2023 -21 2024
Aluminium 0.4
6.1 tCO
2
e/tonne
aluminium (–) 0.6
6.75^ tCO
2
e/
tonne
aluminium 0.1
3.28 tCO
2
e/
tonne aluminium 2021 10
5
2023
Automotive
manufacturers 3.3
66–100 gCO
2
/
Vkm(44–63%) 3.1
145^ gCO
2
/
Vkm 3.1 157 gCO
2
/Vkm 2021 -19 2022
Aviation 1.5
773 gCO2e/RTK
6
(33%) 1.2
771^ gCO
2
e/
RTK 1.2 782 gCO
2
e/RTK 2021 -33 2024
Cement 0.6
0.52 tCO
2
/tonne
cement (22%) 1.8
0.60^ tCO
2
/
tonne cement 2.1
0.62 tCO
2
/tonne
cement 2021 -10 2023
Commercial
real estate 5.3
19–39 kgCO
2
e/
sq.m (47–74%) 0.1
53^ kgCO
2
e/
Sq.m 0.1 58 kgCO
2
e/sq.m 2021 -27 2023
Oil and gas 6.4 9.3 MtCO
2
e (29%) 7.2^ na
7
8.7
8
na
7
2020 -45 2023
Power 6.3
0.17–0.28 tCO
2
/
MWh (46–67%) 5.6
0.39^ tCO
2
/
MWh 4.8 0.43 tCO
2
/MWh 2021 -25 2023
Shipping
9
5.7
0% delta
0% delta 3.0
-0.9%^ delta
+5.1%^ delta 2.9
+3.2% delta
+8.2% delta 2021 -8 2022
Steel 0.6
1.4–1.6 tCO
2
/
tonne steel
(22–32%) 1.0
1.75^ tCO
2
/
tonne steel 1.3
1.87 tCO
2
/tonne
steel 2021 -15 2023
Thermal
coalmining 0.03
0.5 MtCO
2
e
(85%) 1.1^ na
7
1.2 na
7
2020 -67 2021
Others
10
40.1 na
11
7.4 na
11
8.5 na
11
na
11
na
11
na
11
WRB
Residential
mortgages
12
65.7
29–32 kgCO
2
e/sq.m
(15–23%) 0.4
34.2^ kgCO
2
e/
sq.m 0.4 36.0 kg CO
2
e/sq.m 2021 -9 2023
1 An Agreed Upon Procedure review was performed by EY over the Group’s financed emissions net zero targets except for aviation, agriculture and residential
mortgages. Procedures included confirming a net zero target had been set, that the scenarios used to set net zero targets are from credible third-party sources
asrecommended by the NZBA and the selected scenarios align to the quantitative temperature goal of article 2(1)a of the Paris Agreement.
2 Due to third-party data sets that feed into our emissions calculations, the Group’s reported financed emissions figures have a one to two-year lag depending
onwhen third-party data providers release their data refresh.
3 Emissions are calculated in CO
2
except where other GHGs are material, which are noted as CO
2
e (this includes agriculture, aluminium, aviation, commercial real
estate, oil and gas, shipping, thermal coal mining and residential mortgages).
4 Following a CDP methodology update on the default temperature score from 3.1°C to 3.4°C, the 2023 portfolio implied temperature rise (ITR) has been revised from
2.72°C to 2.96°C. As a result, the target pathway has been updated from 2.2–2.4°C to 2.4–2.6°C with the baseline at a higher temperature score.
5 The Aluminium sector intensity increase was driven primarily by increased short-term lending to primary producers, due to mature in 2025. The percentage change
cumulative to baseline column has been calculated based on the change in relation to the sector target given our baseline was already below the 2030 target set.
6 RTK (Revenue tonne-kilometre) is a measure of annual passenger and cargo aircraft traffic representing the metric tonne of revenue load carried one kilometre.
7 Value is not required as the Group has set an absolute emissions target and therefore the production intensity of the portfolio has not been measured.
8 The prior period has been restated from 9.4 MtCO
2
e to apply the Group’s revised methodology to reflect improvements in data quality and only counts Scope 3
emissions on upstream production activities (including diversified and integrated counterparties). There was no impact on the baseline year.
9 Progress is measured against the IMO revised minimum scenario for the shipping sector.
10 Others includes miscellaneous non-high-emitting sectors not included in a sector deep dive.
11 Value is not required as the group has not set a target for the ‘others’ sector.
12 The Group has set its residential mortgages target range at the most ambitious end of the public commitments made by governments and power companies
inthe countries where we operate and has been benchmarked to the Carbon Risk Real Estate Monitor (CRREM) scientific pathway. Reporting for residential
mortgages includes Hong Kong, Singapore, Taiwan and South Korea. These markets make up the majority of the emissions in our residential mortgages portfolio.
Climate
Standard Chartered | Annual Report 202598
Our approach to measuring financed emissions
CIB
Sector Emissions approach Scenario Value chain
Scope of
emissions
2024
PCAF score
1
2023
PCAF score
1
In scope
exposure
coverage
Agriculture Implied temperature
rise (ITR)
IPCC (1.5°C–2°C) Full value chain (pre-farm
andpost-farm)
1, 2 2.1 2.7
86%
3 4.8 4.7
Aluminium Production intensity MPP STS Aluminium producers 1, 2 1.8 1.2 100%
Automotive
manufacturers
Physical intensity IEA APS and NZE Automotive manufacturers 1, 2 2.1 2.3
100%
3 5.0 5.0
Aviation Physical intensity MPP Prudent Aircraft operators,
owners and lessors
1 2.0 2.0
100%
3 2.0 2.0
Cement Production intensity IEA NZE Clinker and cement
manufacturing
1, 2 2.2 2.3
100%
Commercial real
estate
Physical intensity IEA APS and NZE Commercial real estate
investment facilities
1, 2 4.1 4.0
100%
Oil and gas Absolute emissions IEA NZE Upstream, midstream
anddownstream
1, 2 2.7 3.2
99%
3 3.0 3.2
Power Production intensity IEA APS and NZE Electricity generation 1, 2 3.5 3.4 100%
Shipping Physical intensity IMO rev. min.
IMOstriving
Shipping lessors and
companies
1 1.0 1.0
99%
3 1.0 1.0
Steel Production intensity MPP TM Steel producers 1, 2 2.7 3.3 96%
Thermal coal
mining
Absolute emissions IEA NZE Thermal coal miners 1, 2 4.0 3.9
100%
3 3.0 3.0
Others Absolute emissions Other sectors 1, 2 2.9 3.1 84%
WRB
Residential
mortgages Physical intensity CRREM Residential households 1, 2 5.0 4.4 100%
Sector emissions for material Scope 3 high-emitting sectors
Sector
2024 (MtCO
2
e) 2023 (MtCO
2
e)
Scope 1, 2 Scope 3
3
Scope 1, 2 Scope 3
3
Agriculture 1.4 13.9 1.2 10.3
Automotive manufacturers 0.1 3.0 0.1 3.0
Aviation
2
1.0 0.2
Oil and gas 1.0 6.2 1.5 7.2
Shipping
2
0.5 2.5
Thermal coal mining 0.0
4
1.1 0.1 1.1
1 PCAF data quality scores are a ranking system used to disclose the accuracy of emissions data included in the financed emissions calculation. Scores range from 1
to5 with 1 being the best. Client-reported data results in a lower PCAF score whereas estimates or extrapolated data results in a higher score.
2 Disaggregation of Scope 1, 2 and 3 emissions reported for the first time for aviation and shipping.
3 Pursuant to paragraph 28(c), we have reported our Scope 3 category 15 financed emissions. Our reporting is based upon our high-carbon sectors and inclusive
oftheemissions scopes that we deem to be material to each sector and where we have the most influence on supporting our clients on their transition journeys.
Assuch, we do not include all Scope 3 emissions for each reported sector.
4 Scope 1 and 2 emissions for thermal coal mining have been rounded down to 0 to ensure consistency with the total absolute emissions number included
inthefinanced emissions table.
In general, client emissions data is sourced from the below
sources. Where possible, the most recent verified emissions data
has been used:
• externally via third-party data aggregators (such as S&P)
• from annual reports or sustainability reports
• calculated using client production data multiplied by
anappropriate emissions factor
• estimated using internal or public datasets.
Currently, PCAF calls for financial institutions to report Scope 3
emissions for all sectors. Our inclusion of Scope 3 is limited to
sectors where we consider these emissions to be significant
tothe total emission profile of the industry, and where data
qualityis sufficient.
For our financed emissions sector reporting we have elected
tomeasure a specific part of each high-emitting sector’s
valuechain as we deem these activities to result in the most
GHG emissions. The part of the value chain measured is
disclosed inthe sector table above.
The Group applies the United Nations International Standard
Industrial Classification (ISIC) system rather than the Global
Industry Classification Standard (GICS) 6-digit industry-level code
for classifying counterparties into the relevant sector. This is to
ensure cross-functional consistency in client classification, given
sector mapping is utilised in more than just emissions reporting.
Read more in our ‘Net Zero Methodological White Paper
–The journey continues’ publication at
sc.com/sustainabilitylibrary
Annual Report 2025 | Standard Chartered 99
Sustainability review
Sector background
According to the Food and Agriculture Organisation (FAO),
theagriculture sector is responsible for 30 per cent of global
anthropogenic
1
emissions. This sector encompasses an extensive
value chain, extending from the production of fertilisers to sale
offarm products in retail stores. Emissions arise at various stages,
including from the production and useof fertilisers, cultivation
ofcrops, and distribution and processing of agricultural products.
Approach to achieving net zero targets
• Tracking our clients who do not have commitments,
engaging and actively working with those clients to assist
them on setting targets.
• Encouraging our clients to use renewable energy and improve
energy efficiency.
• Improving traceability and labelling for sustainable products.
• Reducing food loss in processing, especially in
developingeconomies.
Baseline, target and portfolio progress 2023to2030
2
Balance in scope Interim target
Performance
versus baseline
$8.2bn 2.4–2.6 °C -21%
Balance in scope Interim target
Performance
versus target
$0.4bn 6.1 tCO
2
e/tonne aluminium +10%
Agriculture
On track Off track
Aluminium
Sector background
The production of aluminium is emissions intensive and
isresponsible for 1 per cent of energy-related emissions as per
theIEA World Energy Outlook (WEO) 2025. The aluminium
sector relies heavily on electricity from onsite power generation
and the local grid. Nearly 60 per cent of the sector’s carbon
emissions are attributable to the electricity consumed during
smelting forthe electrolytic reduction process.
Approach to achieving net zero targets
• Promoting electricity decarbonisation, engaging clients
touptake renewable energy PPAs and low-emission fuel
foronsite power generation.
• Reducing direct emissions through electrification, fuel
switching and use of carbon capture, utilisation and
storage(CCUS).
• Incentivising recycling and resource efficiency that has
asignificantly lower production intensity.
Baseline, target and portfolio progress 2021to2030
1
Progress in the year
The production intensity for the aluminium portfolio has
increased from 3.28 tCO
2
e/tonne aluminium to 6.75 tCO
2
e/tonne
aluminium, an increase of 105 per cent; however, the sector
remains below the net zero target pathway.
This intensity increase was driven primarily by increased
short-term lending to primary aluminium producers (that have
higher emissions intensities per tonne of aluminium produced),
due to mature in 2025. Monitoring the deal pipeline and
promoting transition financing are essential towards aligning
with the 2030 target intensity of 6.1 tCO
2
e/tonne aluminium.
We continue to target the increase of scrap aluminium to avoid
electricity use from the electrolysis phase of production. We are
also working with our primary aluminium producers on their
options for procurement of clean energy.
Progress in the year
The agriculture baseline and target have been set using a
temperature alignment, known as Implied Temperature rise
(ITR). They were updated in 2024 to reflect the increase in CDP
default temperature scores for entities with no commitments
from 3.1°C to 3.4°C. This has resulted in the baseline increasing
from 2.72°C to 2.96°C and the target range increasing from
2.2–2.4°C to 2.4–2.6°C. The ITR for the agriculture portfolio has
decreased from 2.96°C to 2.33°C, a reduction of 21 per cent.
This was mainly driven by:
• Increased lending to clients with improved ITR scores.
• Ongoing engagement of high ITR clients to commit.
toscience-informed targets and submissions to CDP.
The Group continues to actively monitor and place emphasis on
the larger corporates within the value chain to drive change.
Thisincludes those corporates engaging with their suppliers to
decarbonise their Scope 3 emissions, which is where we believe
the greatest impact can be achieved.
Climate
1 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
1 Anthropogenic emissions are emissions caused by human activities and
include energy-related emissions from the burning of fossil fuels, emissions
from agriculture and land use change and emissions from waste.
2 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
3.00
2.50
2.00
1.50
2.33
2.6°C
2.4°C
-13%
to
-20%
2023 24 25 26 27 28 29 2030
Baseline
2.0°C Scope 1, 2 and 3 scenario 1.5°C Scope 1, 2 and 3 scenario
Portfolio progress
Implied Temperature Rise (ITR) score (°C)
2.96
9
6
7
8
1
2
3
4
5
0
3.28
6.75
6.1
Baseline Portfolio progress 2030 Target (MPP STS)
Emission intensity (tCO
2
e / tonne aluminium)
2021 242322 25 26 27 28 29 2030
5.62
Sector breakdowns
Standard Chartered | Annual Report 2025100
On track Off track
Balance in scope Interim target
Performance
versus baseline
$3.3bn 66–100 gCO
2
/Vkm -19%
Automotive
Sector background
The automotive sector is a key sector for international supply
chains and the economy, with tailpipe emissions being the
primary source of carbon emissions from the sector. Annually,
theexhaust emissions from passenger vehicles account for 8 per
cent of global energy-related emissions per IEA WEO, 2025.
Approach to achieving net zero targets
• Encouraging fuel-switching and improving fuel-efficiency
asafirst step.
• Electrification of the vehicle production process.
• Encouraging recycling and the circular economy in the
manufacturing process.
Baseline target and portfolio progress 2021to2030
1
1 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
2 2025 Automotive Package – Proposed revision of the Regulation on CO
2
standards for cars and vans.
Progress in the year
The automotive manufacturers’ portfolio intensity, which is
based upon the CO
2
of tailpipe emissions per distance travelled,
has decreased 8 per cent year-on-year from 157 gCO
2
/Vkm to
145 gCO
2
/Vkm.
This is driven by active financing provided to manufacturers
who are solely making electric vehicles (EVs). Pure battery
EVsare treated as having zero tailpipe emissions in our
methodology, consistent with the NZBA’s automotive sector
emerging practice paper. The decrease was also supported by
progress among other automotive clients in changing their
production mix away from internal combustion engines towards
hybrid engines and EVs.
However, headwinds persisted in the sector with decarbonisation
policy softening
2
and existing large internal combustion engine
manufacturers acknowledging that thepace of decarbonisation
will be slower than anticipated and internal combustion engine
manufacturing will continue to make up asignificant proportion
of sales. As a result, the decarbonisation trajectory may be flatter
in the near term.
The Group aims to monitor and steer the portfolio towards those
automotive manufacturers that have a higher proportion of EVs
in their overall vehicle production mix or have tacit plans to shift
their powertrain production towards lower-emission engines.
210
180
60
90
120
150
30
145
157
100
66
Emission intensity (gCO
2
/ Vkm)
-44%
to
-63%
2021 242322 25 26 27 28 29 2030
Baseline
2030 Target (IEA APS) 2030 Target (IEA NZE)
Portfolio progress
1.78
Balance in scope Interim target
Performance
versus baseline
$1.5bn 773 gCO
2
e/RTK -33%
Aviation
Sector background
The aviation sector accounts for 3 per cent of global energy-
related emissions per IEA WEO, 2025. The majority of emissions
arise from the burning of aviation fuels.
Approach to achieving net zero targets
• Encouraging and financing our clients to scale up the
production and use of SAFs to reduce emissions.
• Supporting clients in financing new aircraft technologies
thathave enhanced fuel efficiency for weighted
distancetravelled.
Baseline target and portfolio progress 2021to2030
1
1 Read more on our target setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
Progress in the year
During 2024, the aviation sector emissions intensity decreased by
1.4 per cent from 782 tCO
2
e/RTK to 771 tCO
2
e/RTK. This is driven
by increased lending towards the latest commercial aircraft with
greater aerodynamic performance and fuel efficiency.
1500
1300
700
900
1100
500
782
771
773
Physical intensity (gCO
2
e/RTK)
Baseline Portfolio progress 2030 Target (MPP Prudent)
-33%
2021 242322 25 26 27 28 29 2030
1152
Annual Report 2025 | Standard Chartered 101
Sustainability review
Sector background
The cement sector contributes approximately 6 per cent towards
global energy-related emissions per IEA WEO, 2025. The primary
source of emissions occurs during the production process where
a chemical reaction takes place between limestone and heat.
Approach to achieving net zero targets
• Improving energy efficiency of cement plants.
• Encouraging clients to use alternative fuels such as waste and
biomass in the production process.
• Encouraging the use of clinker substitutes.
• Financing of electric kiln technologies.
Baseline target and portfolio progress 2021to2030
1
Balance in scope Interim target
Performance
versus baseline
$0.6bn 0.52 tCO
2
/tonne cement -10%
Balance in scope Interim target
Performance
versus baseline
$5.3bn 19–39 kgCO
2
e/sq.m -27%
Cement Commercial real estate
Sector background
The commercial real estate sector contributed 2 per cent
towards global energy-related emissions per IEA WEO, 2025.
Emissions primarily arise from the operation of the building
and,to a lesser extent, embodied emissions related to
theconstruction.
Approach to achieving net zero targets
• The decarbonisation of the power grids that supply the
commercial buildings financed.
• Encouraging fuel switching from fossil fuels to heat pumps
ordirect electricity.
• Lending to retrofit existing building stock to improve
operational efficiency by installing better insulation,
low-energy appliances, efficient cooling and onsite battery
and thermal storage.
• Power purchase agreements for renewable electricity from
the local grid.
Baseline, target and portfolio progress 2021to2030
1
1 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
1 Read more on our target setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
Progress in the year
The cement portfolio intensity has decreased from 0.62 tCO
2
/
tonne cement to 0.60 tCO
2
/tonne cement, a decrease of 3 per
cent year-on-year.
This is driven by increased lending to clients with lower
production intensities, which can be observed as clients improve
the energy efficiency of their plants, increasing the use of clinker
substitutes and scaling up production of low carbon calcined
clay cement to meet their targets.
Progress in the year
The commercial real estate portfolio intensity has decreased 9
per cent from 58 kgCO
2
e/sq.m to 53 kgCO
2
e/sq.m year-on-year.
The reduction is predominantly driven by decreases in the
electricity grid intensities in the markets where funded properties
are located. This follows our belief that energy decarbonisation,
which we are actively pursuing through our power target, has
positive downstream impacts on other sectors.
The Group has further changed the location mix of its portfolio
as a whole, with an increase in exposure to buildings located
inEuropean countries that have lower-intensity electricity grids,
and a relative decrease in exposure to higher-intensity locations
in ASEAN markets.
We continue to work both with our clients to finance new and
energy-efficient buildings, but also with power companies in
their energy supply decarbonisation, which in turn benefits the
commercial real estate portfolio intensity.
0.70
0.40
0.50
0.60
0.30
0.62
0.60
0.52
Baseline Portfolio progress 2030 Target (IEA NZE)
-22%
2021 242322 25 26 27 28 29 2030
Emission intensity
(tCO
2
/Tonne Cementitious product)
0.67
80
60
30
40
50
0
10
20
39
19
53
-47%
to
-74%
Baseline
2030 Target (IEA APS)
2021 242322 25 26 27 28 29 2030
Emission intensity (kgCO
2
e/sq.m floor area)
2030 Target (IEA NZE)
Portfolio progress
70
73
58
On track Off track
Sector breakdowns
Climate
Standard Chartered | Annual Report 2025102
On track Off track
Balance in scope Interim target
Performance
versus baseline
$6.4bn 9.3 MtCO
2
e -45%
Oil and gas
Sector background
The oil and gas sector’s production emissions (i.e. operations)
account for approximately 15 per cent (IEA Emissions from
Oiland Gas Operations in Net Zero Transitions
1
) of global
energy-related emissions.
Approach to achieving net zero targets
• Reducing Scope 1 and 2 production-based emissions through
improvements in operational efficiency, reducing methane
leakages, venting and flaring.
• Encouraging investment in CCUS.
• Encouraging and funding our clients’ shift to gas and greater
investment in renewables.
• Conducting active deal analysis for carbon budget
availability and emissions intensity alignment.
Baseline, target and portfolio progress 2020to2030
2
1 Oil and gas sector operational emissions’ contribution to global
energy-related emission per the IEA’s ‘Emissions from oil and gas operations
in Net Zero Transitions’publication released in 2023.
2 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
3 The oil and gas prior period has been restated due to a change in the
Group’s proxy methodology. There was no impact on the baseline year.
Progress in the year
The oil and gas portfolio emissions decreased 17 per cent
year-on-year from 8.7
3
MtCO
2
e to 7.2 MtCO
2
e. The in-scope
portfolio exposure also decreased by 2 per cent from
2023to2024.
The decrease in emissions has been driven by a decrease in
short-term trade funding and focused lending towards more
carbon-efficient clients and projects. While the year-end
financed emissions are below the 2030 target, they are
anticipated to increase in the short-term as clients increase their
borrowing due to lower interest rates and lower oil and gas
commodity prices.
We are encouraged to see continued focus by our clients on
methane abatement, which materially reduces Scope 1
emissions. We continue to provide funding to oil and gas clients’
renewable portfolios and carbon capture technologies.
16
6
4
2
10
12
8
0
8.7
7.2
9.3
Baseline Portfolio progress 2030 Target (IEA NZE)
-29%
2020 21 242322 25 26 27 28 29 2030
Absolute financed emissions (MtCO
2
e)
14
13.1
1 Refer to our Power Generation and Thermal Coal Position Statement to read
about how we manage environmental and social risks within the power sector.
2 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
Power
Sector background
The electricity and heat sector contributed 41 per cent towards
global energy-related GHG emissions per IEA WEO, 2025.
Itisprojected that global electricity demand will continue to
riseespecially in emerging markets and developing economies.
Approach to achieving net zero targets
• Mobilising lending towards renewable energy and
otherlow-carbon power plant projects.
• Encouraging our clients to invest in renewable energy sources
to diversify their generation mix.
1
Baseline target and portfolio progress 2021to2030
2
Progress in the year
The power portfolio emissions intensity has decreased 9percent
year-on-year from 0.43 tCO
2
/MWh to 0.39 tCO
2
/MWh.
Significant movements included:
• Decreases in funded thermal coal power generation
asbalances mature in line with contractual maturities.
• Increased lending to renewables projects and lower-intensity
gas projects which continue to make up a greater proportion
of the financed power portfolio.
• Increases in lending to counterparties that had higher
percentages of nuclear and renewable generation.
There remains a strong pipeline of lower-intensity power plants
and renewables projects due to start operations inthefuture
that are currently being funded.
Power sector financed generation mix (%)
0.10
0.20
0.30
0.40
0.50
0
0.39
0.43
0.28
0.17
Emissions intensity tCO
2
/MWh
-46%
to
-67%
2021 242322 25 26 27 28 29 2030
Baseline
2030 Target (IEA APS)
Portfolio progress
2030 Target (IEA NZE)
0.60
0.52
319
320 2849
48 30
Natural Gas Low Carbon Thermal Coal Heavy Fuel Oil
2021
2024
Balance in scope Interim target
Performance
versus baseline
$6.3bn 0.17–0.28 tCO
2
/MWh -25%
Annual Report 2025 | Standard Chartered 103
Sustainability review
Shipping
Balance in scope Interim target
Performance
versus baseline
$5.7bn 0% delta -8%
Balance in scope Interim target
Performance
versus baseline
$0.6bn 1.4–1.6 tCO
2
/tonne steel -15%
1 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
1 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
Steel
Sector background
Shipping is key to facilitating global trade. The sector contributes
2 per cent of global energy-related emissions per IEA WEO, 2025.
The sectoral emissions predominantly arise from the combustion
of shipping fuel.
Approach to achieving net zero targets
• Engaging clients to invest in zero emission alternative fuels
and set ambitious targets.
• Financing new ships with greater fuel efficiency in line
withour infrastructure and transport Position Statement.
Baseline, target and portfolio progress 2021to2030
1
Progress in the year
Over the course of the 2025 reporting period, the Group’s
alignment delta for the shipping sector improved significantly,
moving from +3.2 per cent to -0.9 per cent year-on-year against
the revised minimum scenario. This trajectory brings us closer
toour stated objective of achieving a 0 per cent alignment
deltaby 2030.
Climate-related risks are now systematically integrated into our
credit underwriting framework through a structured analysis of
each client’s transition pathway and vessel efficiency profile. This
approach ensures that climate considerations are embedded
across our credit evaluation and portfolio management processes.
Decarbonisation has become a pivotal element in the pricing
of shipping finance. Margins are increasingly shaped not just
byconventional risk-reward evaluations, but also through the
strategic incorporation of climate alignment criteria at both
corporate and asset-specific levels.
Consistent with our commitment to responsible financing
under the Poseidon Principles, we continue to support dual-fuel
and next-generation vessels that demonstrate enhanced energy
efficiency. Our focus remains on partnering with clients who
establish credible transition plans underpinned by ambitious
decarbonisation targets.
Looking ahead, we anticipate that regulatory expectations
and market incentives will further intensify, accelerating the
shifttowards low- and zero-carbon shipping solutions.
Sector background
Steel is a critical material, essential to the functioning of the
global economy from the production of the world’s vehicles and
household appliances to buildings and infrastructure. As such,
the steel sector is the largest source of industrial CO
2
emissions
and accounts for roughly 7 per cent of global emissions per
IEA WEO, 2025.
Approach to achieving net zero targets
• Increasing client renewable electricity usage for electric
arc furnace production.
• Increased scrap steel uptake through trade finance or use
of proceeds finance.
• Increased scrap collection and processing in local economies
• Increased operational efficiencies to existing Blast Furnaces
and Basic Oxygen Furnaces.
Baseline, target and portfolio progress 2021to2030
1
Progress in the year
The steel sector emission intensity has reduced by 6 per cent
year-on-year from 1.87 tCO
2
/tonne steel to 1.75 tCO
2
/tonne steel.
This was driven by increasing lending to clients utilising scrap
steel as opposed to those utilising iron ore in blast furnaces.
We are providing funding for an increased uptake of scrap steel
from some of our primary steel producers that will reduce their
production intensities. Increasing scrap uptake for recycled steel
production using electric arc furnaces reduces the carbon
emission intensity by decreasing the reliance on blast furnaces
that use primary iron ore and coal, thereby saving energy and
raw materials.
The Group has also collected better information for the portfolio
with fewer proxy-based emissions reported, resulting in a better
portfolio intensity.
1
0.2
0.4
0.6
0.0
-0.9%
+3.2%
+11.8%
Relative emissions intensity
2021 242322 25 26 27 28 29 2030
Baseline
IMO StrivingIMO Revised Minimum
Portfolio progress
0.8
+7.3%
1.70
1.60
1.80
1.90
2.00
1.40
1.50
1.30
1.87
1.6
1.4
Emission intensity (tCO
2
/ tonne crude steel)
1.75
2.06
-22%
to
-32%
Baseline
2030 Target (MPP TM regional) 2030 Target (MPP TM)
Portfolio progress
2021 242322 25 26 27 28 29 2030
2.10
2.20
On track Off track
Sector breakdowns
Climate
Standard Chartered | Annual Report 2025104
On track Off track
Balance in scope Interim target
Performance
versus baseline
$0.03bn 0.5 MtCO
2
e -67%
1 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
Thermal coal mining
Sector background
Burning of coal is one of the most significant driving factors
inclimate change. The Group has a Thermal Coal Position
Statement that sets out our aim to phase out our thermal coal
exposure by 2032 (subject to contractual obligations). Scope 1
and 2 emissions come from coal producers using energy in the
mining process, and Scope 3 emissions come from the burning
ofcoal in upstream processes.
Approach to achieving net zero targets
• Rundown of thermal coal exposures in line with contractual
commitments.
Baseline, target and portfolio progress 2020to2030
1
Progress in the year
Thermal coal absolute emissions have decreased by 8 per cent
from 1.2 MtCO
2
e to 1.1 MtCO
2
e. This was due to the portfolio
continuing to be paid down in line with contractual maturities
ofexisting counterparties per the Group’s Thermal Coal
PositionStatement.
3.5
1.5
1
0.5
2.5
3
2
0
1.2
1.1
0.5
Baseline Portfolio progress 2030 Target (IEA NZE)
-85%
2020 21 242322 25 26 27 28 29 2030
3.3
Absolute financed emissions (MtCO
2
e)
Balance in scope Interim target
Performance
versus baseline
$65.7bn 29-32 kgCO
2
e/sq.m -9%
1 Read more on our target-setting approach in the respective sector section
under the reference pathway header in the Net Zero Methodological White
Paper at sc.com/sustainabilitylibrary.
Residential mortgages
Sector background
Residential housing contributed 5 per cent towards global
energy-related emissions per IEA WEO, 2025. The residential
housing sector emissions are primarily from two sources:
theoperation ofthebuilding and embodied emissions
(whichare emissions related to its construction).
Approach to achieving net zero targets
Market initiatives to achieve net zero include:
• Increased lending to clients to improve energy efficiency
through retrofitting and improvement of insulation,
ventilation, and energy management.
• Engaging with clients to decarbonise their electricity supply,
for example, through the direct purchase of green electricity
or green certificates.
Baseline, target and portfolio progress 2021to2030
1
Progress in the year
The Group measured its 2024 progress from the four main
residential mortgage portfolios: Hong Kong, South Korea,
Singapore and Taiwan, accounting for more than 85 per cent
ofthe Group’s exposure. Emissions measured in our baseline
andannual progress include Scope 1 and 2 emissions from
theresidential properties the Group lends against. A physical
intensity of kgCO
2
e/sq.m is the metric used to measure the
portfolio’s progress. While we have set asingle Group-level
target, the nature of the residential real estate market means
alldecarbonisation actions will take place at the local level.
Achieving our target is dependent on actions by local
governments and power companies decarbonising power
generation. The target range has been set at the more
ambitious end of the public commitments made by
governmentsand power companies in the countries where
theGroup operates. These targets have been benchmarked to,
and currently sit above, the global CRREM pathway to 2030.
Theportfolio intensity has decreased 5 per cent from 36.04
kgCO
2
e/sq.m to 34.2 kgCO
2
e/sq.m as we start to see the
emission intensity of power grids in these regions start to
decrease in line with our expectations.
40
30
35
25
36.04
32
29
Emission intensity (kgCO
2
e/sq.m floor area)
34.20
-15%
23%
Baseline
2030 target (upper bound) 2030 target (lower bound)
Portfolio progress
2021 242322 25 26 27 28 29 2030
37.6
Annual Report 2025 | Standard Chartered 105
Sustainability review
Sector
1,2
Interim 2030 target Weighting
2024
MtCO
2
e
2023
MtCO
2
e
Baseline
MtCO
2
e Baseline year
Target set
year
% change
cumulative to
baseline
Oil and gas 2.94 MtCO
2
e (26.9%)
100% weighting factor 3.08^ 1.76 4.02
2021 2024 -23%
33% weighting factor 1.02 0.58 1.33
Sector Emission approach Scenario Value chain
Scope of
emissions
2024 PCAF
score
2023 PCAF
score
In-scope
exposure
coverage
Oil and gas Absolute emissions IEA NZE
Upstream, midstream
anddownstream
1, 2 2.7 2.9
100%
3 3.0 3.0
Oil and gas
Baseline, target and portfolio progress 2021to2030
4
1 The metric and target are based on the rolling three-year average due tothecyclical nature of bond underwriting in the market.
2 Values noted with a caret symbol (^) are subject to independent limited assurance by EY. The report is available at sc.com/sustainabilitylibrary.
3 Value facilitated is equal to the Group’s share of the Bond notional pertheleague table where we act as a bookrunner on the deal for the 2024 financial year.
4 Read more on our target-setting approach in the respective sector section under the reference pathway header in the Net Zero Methodological White Paper at
sc.com/sustainabilitylibrary.
Facilitated emissions
Progress in the year
The facilitated emissions target was set in 2024 for the oil
andgas sector with a reduction target of 26.9 per cent from
a2021 baseline, based on the IEA NZE scenario in line with
financed emissions.
The Group performs active deal analysis for carbon budget
availability and emissions intensity alignment for each oil
and gas bond raised. Alignment to the emissions associated
with facilitation are highly cyclical, due to interest rates and
the global oil price. These emissions trended down between
2021 to 2023 as bond underwriting volumes were low due to
COVID-19 and higher interest rates as a response to a higher
inflationary environment.
During 2024, this cyclicality continued with a return to the market
of many oil and gas counterparties that has seen facilitated
emissions increase up to 3.08 MtCO
2
e. This cyclicality is
anticipated to continue in the medium term as clients increase
their borrowing driven by lower interest rates and lower oil and
gas commodity prices. We aim to continue to monitor this
towards our interim 2030 target in tandem with our financed
emissions oil and gas progress.
4.5
2.0
2.5
3.0
3.5
4.0
1.5
1.76
3.08
2.94
Absolute Facilitated Emissions (MtCO
2
e)
Baseline Portfolio progress 2030 Target (IEA NZE)
2021 242322 25 26 27 28 29 2030
4.02
26.9%
Value facilitated
3
Interim target Performance versus baseline
$3.8bn 2.94 MtCO
2
e -23%
On track Off track
Climate
Standard Chartered | Annual Report 2025106
1 International Energy Agency (2023), Methane Tracker Database.
2 Read more on our methodology and baseline in our Methane White Paper at sc.com/sustainabilitylibrary.
Methane emissions
In 2025, in line with our net zero roadmap, the Group analysed
the intensity of our upstream oil and gas portfolio for
methane emissions, aligned with calculations conducted for
the 12 highest carbon-emitting sectors. Methane emissions
abatement from the oil and gas supply chain is a critical goal
for minimising the impacts of climate change given methane
is a short-lived climate pollutant with a much greater potency
than CO
2
in the near term.
As per the IEA Global Methane Tracker 2025
1
, 85 per cent
ofmethane emissions for the industry are produced by
upstream activities. As a result, the population of clients
considered to be in-scope for our emissions portfolio
calculation are those clients of the Group that have some
form of upstream operations, including integrated and
diversified clients. The Group’s in-scope lending exposure
willcontain a diversified mix of lending for general corporate
purposes as well as integrated and diversified clients covering
upstream, midstream and downstream oil and gas activities.
2
Our Methane White Paper gives more detail on our
methodology and baseline.
The portfolio intensity of the population in scope has been
calculated as 0.089 kgCH
4
/barrel oil equivalent (boe).
Thisisbased on data coverage of over 99 per cent of our
upstream oil and gas portfolio.
We found our portfolio compares favourably to the IEA
NZEmissions 2030 methane target of0.200 kgCH
4
/boe
based on upstream production. Thebaseline calculation
methodology is consistent with the target as total methane
emissions from upstream operations are divided by fuel
production. As at 31 December 2024, over 70 per cent
oftheGroup’s in-scope oil and gas exposure is to clients
thathave announced net zero methane commitments by
2030through either the Oil & Gas Decarbonisation Charter
(OGDC) and/or the Oil & Gas Methane Partnership (OGMP)
Twenty per cent of the in-scope population has achieved
GoldStandard Reporting per the latest OGMP report
‘AnEyeon Methane2025’.
We focus on implementing practical actions to quantify
andreduce methane emissions. This will be achieved by
encouraging public disclosure, promoting policy initiatives
(such as the OGDC and OGMP 2.0, levels four and five,
andeventually gold standard), and by providing methane
abatement financing. The methane intensity disclosures
ofour clients, and by extension of the Group, may change in
the future due to technological advancements of monitoring.
As clients measure their methane abatement more
accurately on an individual asset level (as is required by
OGMP levels four and five) there may be further restatements
of client emission information. We will monitor these changes
and update our financed intensity accordingly.
Climate risks and opportunities
An environmental (such as climate), social or governance
event, or change in condition, if it occurs, could result in
actualor potential financial loss or non-financial detriments
to the Group.
As such, Climate Risk is identified as a material risk for the
Group, which manifests through the Group’s businesses and
operations and impacts the relevant Principal Risk Types
(PRTs). The Group is exposed to Climate Risk through our
clients, own operations, vendors, suppliers and from the
industries and markets that we operate in. Therefore,
wefocus our disclosures on how climate-related risks are
governed, managed and embedded in our business.
We manage Climate Risk according to the characteristics
ofthe relevant PRTs. Risk Framework Owners for the
relevantPRTs are responsible for embedding Climate Risk
requirements within their respective risk types.
Our ESGR Risk Appetite Statement is approved annually
bythe Board and supported by Risk Appetite metrics and
Management Team Limits (MTLs) across relevant risk types.
In 2025, we continued to implement our Transition Plan,
which articulates how we plan to manage Climate Risk
byaiming to deliver on our commitments to reach net zero
emissions in our financed emissions by 2050 and intending
tomaintain net zero emissions in our Scope 1 and 2 emissions
going forward.
Read more about ESGR Risk and Climate Risk in the Risk
review on pages 287 to 302
Read more on our TCFD disclosures in the Climate reporting
index on pages 458 to 465
Read more on our approach to managing Climate Risk
through transition planning in our Transition Plan at
sc.com/transition-plan
Annual Report 2025 | Standard Chartered 107
Sustainability review
Time horizons used to assess the likelihood and impact of climate-related risks and opportunities
During the year, we expanded our climate-related time horizons to better align with the recent Bank of England Climate
Financial Risk Forum (CFRF) publication. This adjustment reflects the progress we have made toward our initial short-term
targets, many of which are now completed. The updated timeframes allow us to more accurately assess and manage
longer-term climate risks and opportunities, while continuing to support our sustainability strategy and the embedded
milestones within this. The time horizons that we now use to identify, assess and manage our identified climate-related risks
andopportunities are as follows:
Short term 0 to 5 years • Our short-term time horizon aligns with our aim:
– To deliver on our interim 2030 financed emissions targets for our 12 highest-emitting
sectors
– To mobilise $300 billion of sustainable finance by 2030
• In line with the Group’s Scope 1 and 2 net zero target, we set year-on-year improvement
targets for our footprint markets. Climate Risk is considered as part of our formal annual
corporate strategy and financial planning process.
Medium term 5 to 10 years • Our strategic and financial planning constitutes action plans that intend to enable us to
align to our net zero targets. These plans include the progression of our TPC
engagement across our core markets.
• Over this timeframe, the most material transition risks identified in our scenario analysis
begin to influence client creditworthiness. Our transition scenarios demonstrate policy
tightening, carbon-pricing convergence and technological cost declines, which
accelerate between 2030 and 2035 under both orderly and disorderly scenarios.
Long term 10+ years • Our long-term time horizon aligns with our aspiration to achieve net zero in our financed
emissions by 2050.
• For climate scenario analysis, we run 30-year scenarios for both physical risk
and transition risk, with some elements of our physical risk scenario analysis extending
to 2100.
• Transition risk as our clients move to lower emitting revenues by virtue of legislation
isconsidered with reference to client transition pathways and manifests over a longer
term than the maturity of the loan book up to 2050.
Climate
Standard Chartered | Annual Report 2025108
List of climate risks and opportunities
We have identified the following climate risks and opportunities as part of our materiality process (see page 72 for details).
While these could reasonably be expected to affect at least part of the Group over the time horizons specified below, they may
not affect all our operations, subsidiaries or value chain equally.
Impacted
risktype Risk description Risk driver
Key risk
driver detail
Time
horizon Further detail
Credit Risk
(WRB)
Physical risks, such as rising sea levels and severe
flood events, could adversely impact repayment
ability through damage to properties or loss of
insurance cover, leading to potential increases in
credit losses for the Group. Credit losses may also
result from changes in the economic environment
as it transitions towards lower emissions (e.g.,
changes in clients’ disposable income due to
fluctuations in energy prices).
Physical
Transition
Acute
Chronic
Market
Short
Medium
Long
WRB Credit
Risk
(page 293)
Credit Risk (CIB)
Disruption to clients’ business models due
tophysical or transition risk impacting their
profitability and thereby affecting their capacity
to repay debt, or the capital and collateral
required to back the loan.
Physical
Transition
Acute
Chronic
Market
Short
Medium
Long
CIB Credit Risk
(page 289)
Operational,
Technology and
Cyber Risk
Impact of acute or chronic physical risks may
disrupt our own properties, data centres and
third parties leading to business disruptions.
Furthermore, costs may increase through
implementation of practices such as renewable
energy sources and waste reduction to
reduceemissions.
Physical
Transition
Acute
Chronic
Technology
Short
Medium
Long
Operational,
Technology
and Cyber Risk
(page 296)
Country Risk
Both physical and transition risk can have a
direct impact on a sovereign’s economic strength
and increase their cost of borrowing, directly
impacting overall creditworthiness.
Physical
Transition
Acute
Chronic
Market
Regulation
Short
Medium
Long
Country Risk
(page 295)
Environmental,
Social and
Governance and
Reputational
(ESGR) Risk
Potential or actual adverse impact on 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.
Transition Regulation
Legal
Short
Medium
ESGR Risk
(page 231)
Traded Risk
Acute physical risk events or a disruptive
transition can cause sudden changes in the
fairvalue of assets driven by commodity price
changes. Additional impact may result due
totrigger sales, or sudden and negative price
adjustments where these risks are not yet
incorporated into prices.
Physical
Transition
Acute
Market
Short
Medium
Traded Risk
(page 297)
Treasury Risk
Impact on client business models and their
overall financial stability from transition to a
low-carbon economy or recovery from a physical
climate event may impact the Group’s capital
orliquidity adequacy.
Physical
Transition
Acute
Chronic
Market
Regulation
Short
Medium
Long
Treasury Risk
(page 297)
Model Risk
Model Risk may exist from inappropriate
design,specification, development or
governance of a model relative to the intended
business objectives and/or ineffective model
remediation in response to issues identified
bymodel validation.
Physical
Transition
Acute
Chronic
Technology
Short
Medium
Long
Model Risk
(page 297)
Annual Report 2025 | Standard Chartered 109
Sustainability review
Impacted
opportunity
type Opportunity description
Opportunity
driver
Key
opportunity
driver detail
Time
horizon Further detail
Sustainable
finance
The global pursuit of a just transition presents
revenue opportunities from connecting clients
with the funding required to implement climate
mitigation and adaptation initiatives. Different
geographies and industries will require different
initiatives and different financial products to
facilitate them.
Physical
Transition
Acute
Chronic
Market
Short
Medium
Long
Sustainable
finance
(page 83)
Operational
resilience and
efficiency
Investing in energy-efficient technologies and
practices can reduce operational costs. We also
have an opportunity to assess and adapt our
operations to become more climate resilient.
Transition Technology
Regulation
Short
Medium
Our operations
(page 93)
Reputational Demonstrating a commitment to reducing our
own and client emissions can enhance the
Group’s reputation among clients and other
stakeholders. There is a potential to increase
client loyalty and attract new clients who
prioritise sustainability. Thestrategic
reputational impact of our opportunities is
considered alongside other climate risks and
opportunities.
Transition Market
Regulation
Short
Medium
Long
Sustainable
finance
(page 83)
Climate risks and opportunities in the Group’s
strategy and financial planning
The current financial effect of climate-related risks is detailed
within Note 1 to the Financial Statements (read more on page
332) where we have considered the effect on the Group,
noting that climate risk did not result in a material change to
the current year’s balance sheet or income statement.
Specifically, our impact assessment resulted in only an
immaterial ECL increase across CIB and WRB, which has been
recorded as a management overlay for the 2025 year-end.
The current effect of climate-related opportunities can be
seen through the progression of our sustainable finance
mobilisation, asset and liabilities and sustainable finance
income, as described on page 83.
The Group does not currently anticipate any significant
residual impact on its financial position, performance, or cash
flows over the short term, medium or long term. Our work to
date across our net zero journey (detailed within the
Sustainability review) and risk management of climate
effects (detailed within the Risk review) supports our shorter
term strategy to mitigate physical and transition risk where
possible and has indicated that our business is resilient to all
Network of Central Banks and Supervisors for Greening the
Financial System (NGFS) scenarios that were explored for
longer term time-frames, validating the actions the Group is
taking in terms of net zero ambitions (read more on page
298). While providing more detail would be market-sensitive,
the current and ongoing targets in relation to sustainable
finance are indicative of the expectations the Group has in
relation to the effects of climate-related opportunities. Our
Innovation Hubs provide details of emerging sustainability
themes that we deem to be potential growth areas. We
identify, assess, prioritise and monitor climate-related
opportunities including through our Innovation Hubs and our
sustainable finance teams, which develop customised
solutions that speak to clients’ needs and ambitions. Our
Transition Plan is a key instrument through which we plan to
deliver on these targets and assess the resilience of the
Group’s strategy to climate-related risks. Read more on how
the Transition Plan informs our strategy and decision making
on page 90. We will continue to monitor current and
anticipated financial effects of climate-related risks and
opportunities as we further enhance our modelling and risk
assessment capabilities.
While they do not directly inform the Group’s identification of
climate-related opportunities, the results from scenario
analysis serve multiple use cases, including as one of the
inputs to CIB clients’ Climate Risk grading (BRAG) assessment,
which is integrated into the existing credit approval process.
This integration is key to informing the overall Climate Risk
management process. A quarterly refresh of the scenario
analysis for CIB monitors expected stressed losses from
Climate Risks against predefined thresholds over a five-year
horizon. High-risk clients identified through scenario analysis
are disseminated for further consideration and discussion in
key forums. The results are used for assessment of Pillar 2A
capital add-on as part of Internal Capital Adequacy
Assessment Process (ICAAP) for CIB and WRB segments, and
for assessing credit impairment due to Climate Risk with a
focus on CIB sectors with interim 2030 targets, as part of
corporate planning. Further information on the processes and
related policies used to identify, assess, prioritise and monitor
climate-related risk (for example, through scenario analysis)
and how these are integrated into and inform our overall risk
management process, are set out in the ESGR Risk section on
page 287 to 302.
Climate
Standard Chartered | Annual Report 2025110
Nature
It is estimated that more than half of global GDP is highly dependent
uponnature
1
. TheNexusassessment
2
from the Intergovernmental
Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)
highlights how biodiversity loss undermines livelihoods, foodsecurity,
economies and health, while also threatening theresilience of our
planet toclimate change.
We acknowledge that protecting nature is essential to
limiting global warming and mitigating the effects of climate
change so that the planet can sustain livelihoods and support
inclusive sustainable economic development.
We aim to contribute to the Global Biodiversity Framework
2030 mission of halting and reversing nature loss by: (1)
continuing to integrate nature in decision-making within our
business (target 14); (2) publishing nature-related disclosures
based on the TNFD recommendations from 2026 onwards
(target 15); and (3) shifting financial flows toward nature-
positive outcomes and contributing to mobilising funding
fornature and delivery of the Global Biodiversity Framework
(target19). We are members of a wide range of industry
platforms working to increase industry awareness of the
relevance of nature considerations to financial decision-making.
This year, we have released our inaugural Nature Report.
Thismarks an important milestone in our journey as an
earlyadopter of the TNFD Framework. The Report details
Standard Chartered’s approach to assessing, evaluating,
understanding and managing nature-related impacts,
dependencies, risks and opportunities across our financing
activities and own operations. It summarises our nature-
related policies and procedures, such as our Environmental
and Social Risk Management (ESRM) Framework and
Position Statements, our Sustainable Finance Frameworks
and our Nature Finance Innovation Hub, which is designed
toidentify and assess nature-related risks and develop
nature-related opportunities. It also outlines the actions
weare taking to further embed nature considerations into
our governance, strategy, and risk and impact
managementprocesses.
Our progress on nature
The initiatives below represent the key highlights of
nature-related activities undertaken by the Group in 2025.
Mobilising finance for nature-positive outcomes
• We structured a €433 million sustainability-linked loan
forthe Ministry of Finance and Budget, Republic of Côte
d’Ivoire, acting as sole lender and mandated lead
arranger. Arranged under Côte d’Ivoire’s Sustainability-
Linked Financing Framework launched in June 2025,
theloan enables access to financing on more favourable
terms by linking financial conditions to clear sustainability
performance targets in renewable energy (excluding
hydropower), deforestation prevention, and reforestation.
• Alongside a syndicate of banks, we participated as a
mandated lead arranger in project financing for Chestnut
Carbon of up to $210 million, to fund a US voluntary carbon
removal afforestation project. See page 82 fordetails.
• We provided advisory services to Kreditanstalt für
Wiederaufbau (KfW) to evaluate the feasibility of the
Tropical Forest Forever Facility (TFFF) and Tropical Forest
Investment Fund (TFIF), a global initiative led by the
Government of Brazil and aimed at creating a long-term,
results-based financing mechanism to incentivise tropical
forest conservation, for which Germany announced a
€1 billion contribution at the United Nations Framework
Convention on Climate Change (UNFCCC) COP30 in Belem.
• We signed an Indonesia seaweed project Memorandum
of Understanding with the Association of Indonesian
Employers (APINDO), Conservation International and
Konservasi Indonesia to support sustainable seaweed
industry development in Indonesia.
• The Standard Chartered Foundation announced its intent
to invest $5 million into creating a thriving blue economy
across ASEAN that enables young people to secure decent
work while maintaining and protecting the ocean.
• Alongside the International Union for Conservation of
Nature (IUCN), we have co-funded a feasibility study to
scope the potential blue carbon value that could be
derived from Palk Bay’s seagrass. This study is led by The
Zoological Society of London, the Wildlife Institute of India
and the Tamil Nadu Forest Department.
3
• Read more about the work done by our Nature Finance
Innovation Hub on page 78.
Understanding the materiality of nature loss on the
Group’s activities
• Our Nature Risk Working Group, comprising of
cross-functional teams from our first and second line
ofdefence, have reviewed the methodology and
assessments developed by the Nature Finance Hub.
Thekey results from our risk and impact assessments,
which have been published in our Nature Report, are:
– Identified potential nature-related impacts and
dependencies in our financing activities: We conducted
an analysis of our CIB portfolio and identified sectors
with the highest exposure to potential nature-sensitive
activities based on nature-related impacts and
dependencies. Our analysis identified agriculture
producers, building products, construction and
engineering, metals and mining, oil and gas, other
materials, commodity traders, pharmaceuticals,
1 PWC (2023) Managing nature risks: From understanding to action.
2 McElwee, P. D., et al. (2025). IPBES Nexus Assessment: Summary for Policymakers. Zenodo.
3 Read the full study at sc.com/palk-bay.
Annual Report 2025 | Standard Chartered 111
Sustainability review
biotechnology and life sciences, consumer services and
food, beverage and tobacco as the sectors with the
highest potential sensitivities to nature-related impacts
and dependencies. Thisaccounts for 8 per cent of CIB’s
2025 total portfolio exposure. The insights gained from
this analysis will be used to prioritise these sectors for
furtherin-depth assessments and client engagement,
enhancing our understanding of the potential
nature-related risks involved and enabling
identification of potential opportunities.
– Identified and assessed nature-related impacts and
dependencies in our direct operations: We assessed our
direct operations’ proximity to sensitive locations based
on our Nature and Agribusiness Position Statements
criteria and examined their nature-related impacts and
dependencies. The results reflect that our direct
operations’ local impacts and dependencies on nature
are limited.
• We are ranked 5
th
out of 150 Financial Institutions in the
2024 Forest500
1
assessment, reflecting the strength and
scope of our deforestation-related policies in agriculture
and forest-risk commodities.
• Joint number one in the World Wildlife Fund’s (WWF)
Above Board 2024 assessment
2
of Banks’ Seafood Sector
Policy Analysis showcasing the robustness of our approach
to the fishing industry.
• Exploring ways to minimise the environmental impact
ofour operations by reducing energy, GHG emissions,
water usage and non-hazardous waste generated in our
operations (refer to page 93 for details).
• Set out the expectations of our suppliers to reduce
wastefrom their operations through our Supplier Charter,
including managing environmental concerns in their
ownsupply chains, and protecting the environment
andconserving natural resources, in compliance with all
applicable environmental laws and regulations.
Supporting collective action to address nature loss
andecosystem decline
• 2025 saw us continue to focus on advancing the
sustainable blue economy:
– Joined #BackBlue, an Ocean Finance Commitment that
aims to ensure that a regenerative sustainable ocean
has a seat at the table in finance and insurance
decisions.
– Published our latest sustainability research, ‘Harnessing
Africa’s Blue Economy’ and ‘Valuing Nature: The ROA
ofan MPA’, highlighting the opportunity a sustainable
blue economy represents in Africa and the importance
of mainstreaming nature considerations into financial
decision-making in marine protected areas.
3
– Continued engagement with the Ocean Risk and
Resilience Action Alliance, the UN Global Compact
Ocean Investment Protocol Steering Committee, the
World Economic Forum Global Future Council for the
Ocean and the WWF Seafood Finance Working Group.
– Actively participated in the Blue Economy & Finance
Forum and the United Nations Ocean Conference,
promoting blue finance solutions such as the Bahamas
debt-for-nature-swap, which we executed in 2024.
• Engaged with market initiatives and financial regulators
toadvance the nature finance ecosystem. This includes
co-chairing the UK–China Nature & Biodiversity Finance
Workstream under the UK–China Green Finance
Taskforce, and memberships in UN Environment
Programme Finance Initiative and Principles for
Responsible Banking, Singapore Sustainable Finance
Association Natural Capital and Biodiversity Workstream,
WEF Nature Positive Transition, Green Finance Institute’s
TNFD UK Consultation Group, WEF Biodiversity Credit
Initiative, UK PRA/FCA Climate Financial Risk Forum
Nature workstream and the Global Islamic
FinanceProgram.
• We are a member of The Royal Foundation’s United for
Wildlife Financial Taskforce Advisory Board, which aims
todisrupt illicit financial flows that underpin wildlife crime.
• Contributed to nature finance-related white papers
fromSingapore Sustainable Finance Association
4
, World
Economic Forum
5
and UK PRA/FCA Climate Financial
RiskForum
6
.
Building internal capacity
• Provided nature-related risk training to the Board
RiskCommittee.
• Piloted nature corporate transition training for selected
Sustainable Finance colleagues in CIB Coverage teams.
• Updated Nature Finance module under Sustainable
Finance Practitioner Programme for CIB Coverage teams.
Read our Nature Report at sc.com/nature
Read more on our memberships and engagements at
sc.com/sustainabilitystakeholders
Read our Supplier Charter at sc.com/suppliercharter
Read our Position Statements at sc.com/positionstatements
1 Based on Forest 500’s 2024 rankings for financial institutions.
2 World Wildlife Fund (WWF) Sustainable Banking, ‘Above Board: 2024 Assessment of Banks’ Seafood Sector Policies’, 2025.
3 Read our research and insights at sc.com/sustainabilitylibrary.
4 Singapore Sustainable Finance Association in partnership with Oliver Wyman, ‘Financing Our Natural Capital: A practical guide for FIs getting started on nature
financing’, April 2025.
5 World Economic Forum, ‘Investing in Mangroves: The Corporate Playbook’ White Paper, April 2025.
6 Climate Financial Risk Forum, Nature-Related Risk Working Group, ‘Developing an approach to nature risk in Financial Services’, October 2025.
Nature
Standard Chartered | Annual Report 2025112
Social impact
We believe in the power of finance to drive positive change in the world.
Our desire to drivesocial impact extends across both our commercial
and our philanthropic activities, reflecting our aspiration to build a future
that is both financially resilient and socially inclusive – a foundation for
healthy and sustainable economies in our markets.
We approach social impact from two angles:
• Through our business and clients: we provide clients with
the financing that they and their communities need to
tackle urgent matters such as inequality, access to
essential services, and inclusive growth.
• Through our corporate philanthropy: we work to drive
impact and prosperity for underserved young people by
providing them with skills and networks and connecting
them with employment and commercial opportunities.
The combination of these efforts underscores our holistic
approach to creating long-term value for our clients,
colleagues and communities. By integrating both commercial
and philanthropic aspirations to support our sustainability
work and our Stands, we aim to accelerate our progress and
amplify positive social impact such as women’s
empowerment and financial inclusion.
Our commercial activities: investment
insocial finance
We seek to partner with our clients and communities to
mobilise social capital.
Empowering women-owned businesses
The Standard Chartered Women’s International Network (SC
WIN) is our holistic proposition across banking and beyond
banking solutions (network access, training programmes and
mentorship). SC WIN launched in 2022, and it is now live in
seven markets – India, Kenya, Malaysia, Singapore, Hong
Kong, Vietnam, and Pakistan.
The Group has made a commitment to extend $1 billion of
financing to women entrepreneurs by 2028. As of December
2025, SC WIN has extended more than $540 million of
financing to women-owned businesses. This results in a
year-on-year growth of 72 per cent in financing, 155 per cent
in deposits, and 44 per cent in client counts. We are well
underway to achieving the Group’s commitment.
Beyond financial support, we’re laying the foundation for
two other factors critical to the success of women
entrepreneurs: inclusive training and educational
programmes, and community support to enable access
to mentorship, networks and resources. Therefore, SC WIN
also provides training and development capabilities, as well
as a SC WIN community for women founders and business
leaders to lean in.
Supporting microlending
We recognise the pivotal role of microlending in fostering
economic inclusion and sustainable development.
Microlending plays a vital role in supporting underserved
communities and creating opportunities for growth. Since
2006, we have financed microfinance partners in India,
Bangladesh, the Philippines, Nepal, Pakistan, Kenya, Uganda,
Tanzania and Nigeria. From 1 October 2024 to 30 September
2025, we’ve lent more than $584 million to microfinance
institutions, enabling over 1.05 million loans. These loans
support a wide range of needs, from building small businesses
to covering education costs or managing unexpected
emergencies.
We have continued to grow our partnerships in 2025. In
Indonesia we have partnered with Amartha, a technology
company that provides microfinance to women-led
microenterprises in rural areas, a region and demographic
that has historically had limited access to finance. Through
this partnership we aim to empower more female MSMEs,
create jobs and build more inclusive economic growth.
Social bond issuance
In March 2025, we issued our inaugural social bond. This
€1 billion eight-year non-call seven-year offering will primarily
facilitate lending to SMEs, ensuring access to finance, helping
create jobs and empowering and nurturing women-owned
SMEs. Named after former Group Chair José Viñals who
retired from the Board in May 2025 at the end of his nine-year
term, the Viñals Social Bond paid tribute to his significant
legacy and impact inside and outside the Group.
This bond was issued under our Sustainability Bond
Framework. Read more about the framework on page 89.
Our philanthropic activities:
communityinvestment
Prevailing youth unemployment continues to be one of the
greatest challenges of our time. The consequences are not
just for young people, but also pose a threat to broader
economic and social prosperity. Our philanthropic approach
focuses on helping tackle this global issue through the
Standard Chartered Foundation – a charitable organisation
established in 2019 – and through community partnerships,
client partnerships and employee volunteering.
Annual Report 2025 | Standard Chartered 113
Sustainability review
In 2025, the Group contributed $39.4 million as charitable
giving in the form of cash contributions. This includes
$15.3 million on our flagship youth economic empowerment
initiative delivered with the Standard Chartered Foundation
(formally known as Futuremakers by Standard Chartered),
which also received an additional $4.3 million of fundraising
from our employees and partners. Programmes under this
initiative are funded by the Standard Chartered Foundation
and directly by local Group offices in those markets where
regulatory restrictions apply.
Enabling youth economic empowerment with
theStandard Chartered Foundation
The Standard Chartered Foundation (the Foundation)
governs and sets the strategy for our youth economic
empowerment community investment, with a goal to
empower young people. Programmes recognise the
importance of youth driving growth by working with them
tosecure decent work and grow their microbusinesses.
Prioritisation is given to the underserved, especially young
women and those with disabilities, who are too often left
behind.
In 2025, working with a range of expert NGO partners, we
supported 24,718 young participants and enabled 16,305 jobs
through employability and entrepreneurship programmes, of
which 53 per cent were for women, and 12 per cent for those
with disabilities. This year-on-year decrease
1
is partly due to
the completion of remaining pre-2024 legacy projects in the
first half of the year, and partly due to challenging economic
context in many of our markets during 2025. 106,570
2
jobs
3
have been enabled since 2019 and, we are actively working
with our NGO partners to identify ways to scale so that we
can deliver the target of 250,000
4
jobs by 2030.
Catalysing decent jobs
Figures from the International Labour Organization (ILO)
show youth unemployment and Not in Employment,
Education or Training rates remain high, rising slightly over
the last year
5
, of which many live in our markets. Systematic
barriers to decent jobs continue to leave many young workers
behind. To help, the Foundation’s employability programmes
focus on working with young people to secure quality jobs –
commonly referred to as decent work. Through our
employability programmes, in 2025, 14,236 young people
accessed decent
6
jobs with 50 per cent of these being women
and 14 per cent being people with disabilities.
The Foundation launched a three-year partnership with
UNICEF Generation Unlimited to help 1,500 young women
secure decent work in Kenya and Nigeria. Projects from a
partnership with Plan International went live in Asia, to equip
over 6,000 young people in Indonesia, the Philippines, South
Korea, Thailand and Vietnam with the skills, networks and
confidence they need to secure decent jobs.
Building disability awareness and inclusion across Foundation
employability programmes also progressed well in 2025.
Forexample, 240 prospective employers became more
disability-confident hirers in Kenya, Pakistan, Ghana,
Tanzania, Uganda and Zambia.
Helping microbusinesses thrive
Supporting smaller businesses, especially women-owned
andyouth-led enterprises, is essential to building inclusive
and sustainable growth. Foundation entrepreneurship
programmes integrate financial access with mentorship,
business skills training and ecosystem support, ensuring that
microbusiness owners not only gain access to capital, but can
use it effectively. Focusing on impact, the programmes are
tailored to help achieve business growth, build social and
green microbusinesses and, in turn, create much needed jobs
in communities. Through our entrepreneurship programmes,
in 2025, we supported 977 microbusinesses to become thrive,
enabling 2,069 jobs. This brings the total number of thriving
microbusinesses since 2019 to 18,319, and the total jobs
enabled by these microbusinesses to 37,210.
We expanded investment in our Women in Tech
entrepreneurship programme across Africa, the Middle East
and Pakistan in 2025, in partnership with Village Capital.
Over three years, the aim is to support 400 female
entrepreneurs to build thriving microbusinesses and create
jobs, with 32 catalytic grants totalling $1.9 million.
Thisprogramme now covers 14 of our markets.
In Vietnam, entrepreneurs were connected to angel investors,
a capital stream they can’t typically access, leading to five
microbusiness owners receiving investments to help their
business grow.
Building ecosystems
For young people to prosper in employment or self-
employment, filling gaps in the ecosystem that supports them
is critical. In 2025, the Foundation announced a $5 million
commitment to help create a thriving blue economy across
ASEAN. Currently in the inception phase, expert organisations
are being convened to create a programme of
interconnected activities. The aim is to enable young people
to secure decent work while maintaining and protecting the
ocean. Results from this pilot programme will inform the
development of similar ecosystem programmes in other
markets and sectors.
1 Over 29,000 jobs were enabled in 2024.
2 The data comprises 69,360 young participants in decent employment, and 37,210 direct jobs enabled by supported microbusinesses.
3 Total jobs-enabled datacomprises underserved participants who access decent employment at the end of the intervention, and direct jobs (part-time and
full-time direct employees, contractors, support/gig workers, and the entrepreneurs themselves) created by supported microbusinesses within 12 months of the end
of the intervention. ThisKPIis based on actual data collated from project alumni over the seven-year period, estimates based on empirical research, and ex-post
project evaluations.
4 This target has been revised upwards from 140,000 to 250,000 jobs enabled by 2030, due to a) a revision of the employability KPI to account for underserved male
participants and b) moving the baseline from 2024 to 2019 to show progress since the start of programming.
5 ILO (2026) World of Work Series: Employment and Social Trends Report.
6 Decent jobs comprises formal employment and self-employment. ‘Decent’ aligns with the ILO definition, but in recognition of the challenges in many markets to
satisfy every criteria for ‘decent’, our programmes count those participants who have met minimum wage plus at least two additional ILO criteria.
Social impact
Standard Chartered | Annual Report 2025114
Charitable giving
2025
$million
2024
$million
2023
$million
Cash contributions 39.4 47.9 31.2
Employee time (non-cash item) 25.8 25.7 28.7
Gifts in-kind (non-cash item)
1
0.7 0.5 0.4
Management costs 4.6 5.2 5.4
Total (direct contributions by Group) 70.5 79.3 65.7
Leverage
2
4.7 2.7 2.9
Total (including leverage) 75.2 82.0 68.6
Percentage of prior year operating profit (PYOP) 1.3 1.6 1.6
1 Gifts in-kind: in-kind contributions of products, property or services valued at the cost to the Group.
2 Leverage: fundraising from employees and partners benefitting the community.
Measuring societal impact
Driving social impact is at the heart of the Foundation’s
ambition. We continued to refine a social return on
investment model that seeks to measure the broader social
and economic impacts of the Foundation’s efforts, and
quantify the overall impact made beyond the individual.
Based on outcomes from youth programmes in 2025, the
model estimates that more than 120,000 lives have been
impacted. The insights show the Foundation’s approach is
making progress and we will continue to share successes and
learnings with peers andstakeholders.
Promoting skills-based volunteering and other
community investments
We believe the most sustainable way to create impact is by
sharing what employees know best – their skills. We have
continued to focus on skills-based volunteering, connecting
colleagues to support social enterprises, NGOs, and youth
through mentoring, financial education, green literacy and
professional advice. This approach not only drives greater
community outcomes but strengthens colleague
engagement, leadership and purpose. In 2025, our employees
contributed more than 412,900 employee volunteering hours,
with more than a quarter (28 per cent) in skills-based
volunteering. 50 per cent of Standard Chartered employees
volunteered in 2025 (53 per cent in 2024).
In some of our markets, we also support community
healthcare, climate, education and agricultural livelihood
projects. In 2025, for example, we supported eye health,
water, sanitation and hygiene education (WASHE), and
education projects in India.
Annual Report 2025 | Standard Chartered 115
Sustainability review
Managing Environmental
and Social Risk
We seek to proactively manage environmental and social risks and
theimpacts arising from the Group’s client relationships and transactions.
Our cross-sector Environmental and Social Risk Management
(ESRM) Framework describes how we apply international
standards and best practices across our markets and helps
usmake informed decisions when considering trade-offs
between sustainability-related risks and opportunities.
On the frontline, our ESRM team within the CSO organisation
oversees the management of environmental and social risks
associated with our client relationships. Our approach is
embedded in our credit approval process and helps us work
with our stakeholders to identify, manage, mitigate and
monitor the potential impacts that stem from our financing
decisions.
Our Position Statements, approved by the GRRRC, outline the
cross-sector and sector-specific criteria we apply to assess
whether to provide financial services to our clients. They also
outline our expectations for clients to follow industry best
practice approaches and encourage them to pursue
sustainability initiatives.
We use these statements – which draw on International
Finance Corporation Performance Standards, the Equator
Principles and global best practice – to assess environmental
and social risk related to our financing.
Our ESRM Framework explains how we apply our Position
Statements in our business relationships with clients and
provides further information regarding our environmental
and social risk assessment, rating and escalation processes,
as well as due diligence and monitoring procedures.
We have been a member of the Equator Principles since
2003. We apply the principles to relevant project-related
transactions and report on their application to ensure
thatthe projects we finance and advise on are developed
inasocially responsible manner and adhere to sound
environmental management practices.
We reviewed 1,204 clients across CIB and WRB client
segments and 685 CIB transactions that presented potential
for elevated environmental and social risk in 2025. If we find
amaterial environmental and social issue, we take steps
toproactively engage the client to mitigate identified risks
and impacts, and support and guide our clients to improve
their environmental and social performance over time.
However, for clients who do not meet our Position Statement
criteria, we may look to withdraw financial services and exit
the lending relationship if we cannot work with them to align
over an agreed timeframe.
In 2025, we advanced our Nature Risk analysis by leveraging
our climate risk asset location data to support in-depth risk
identification of a potentially material sector and assess
ourfinanced assets’ exposure to nature impacts and
dependencies. The Group’s cross-sector Nature Position
Statement provides a consolidated view of our approach
tomanaging Nature Risk across our business, operations
andsupply chain. Further information can be found
onpage111 of this report.
Read more about our ESRM Framework at
sc.com/esriskframework
Read more about our Position Statements at
sc.com/positionstatements
Our list of Prohibited Activities can be found at
sc.com/prohibitedactivities
Our reporting against the Equator Principles can be found
on page 450 and at sc.com/equatorprinciples
Position Statements
Cross-sector Position Statements
Climate Change
Human Rights
Nature
Sector-specific Position Statements
Agribusiness
Chemicals and Manufacturing
Extractive Industries
Infrastructure and Transport
Power Generation
Thermal Coal
Standard Chartered | Annual Report 2025116
Respecting human rights
We are committed to respecting human rights across our
business. We recognise that the global nature of our business
may expose us to the risk of modern slavery and human
trafficking in our operations, supply chain and client
relationships and we are committed to managing and
mitigating these risks. Our Modern Slavery Statement details
our approach and actions to manage modern slavery risks
across our value chain.
Read our Modern Slavery Statement at
sc.com/sustainabilitylibrary
Our Position Statement on Human Rights is a key part of our
ESRM Framework and was developed following engagement
with a range of internal and external stakeholders, including
expert practitioners and civil society organisations. Like our
cross-sector Position Statements, the Human Rights Position
Statement applies to our clients, suppliers and employees
and is regularly reviewed to ensure it addresses emerging
risks and issues.
Due diligence is a central part of our approach in assessing
and managing risks associated with the provision of financial
services to our clients. We approach this due diligence in
accordance with our ESRM and Financial Crime Compliance
(FCC) frameworks.
Read more about our ESRM Framework and Position
Statements at sc.com/positionstatements
We will not knowingly enter into relationships with suppliers
involved in human trafficking, modern slavery or forced
labour including any corporal punishment in the workplace.
ILO Conventions 29 and 105 provide further detail in respect
of forced labour. Suppliers that are identified as presenting
high risks of modern slavery are subject to due diligence.
OurSupplier Charter sets out the principles for the
behavioural standard that we expect from our suppliers,
andthose within our suppliers’ sphere of influence that assist
them in performing their obligations to us.
Read our Supplier Charter at sc.com/suppliercharter
Our Fair Pay Charter sets out the principles by which we seek
to deliver fair and competitive remuneration to all employees.
We use these principles to guide reward and performance
decision-making globally, including how we set, structure and
deliver remuneration.
Read more on our alignment to the Fair Pay Charter
onpage 189 of this Annual Report and in our 2025 Diversity,
Equality and Inclusion Impact Report at
sc.com/diversityfairpayreport
Annual Report 2025 | Standard Chartered 117
Sustainability review
Integrity, conduct and ethics
We aim to live our valued behaviours – never settle, better together
and do the right thing – through our day-to-day actions, decisions
and interactions with colleagues, clients and the markets we serve.
Managing Conduct Risk is critical to delivering positive
outcomes for our clients, markets and stakeholders and
fundamental to achieving our brand promise, here for good.
Conduct Risk may arise anywhere in the Group at any time.
The Group therefore expects all employees to be responsible
for managing Conduct Risk given it is a transversal risk, which
means it impacts every aspect of the Group’s operations.
Our Group Conduct Risk Management Standard sets
minimum standards for the management of Conduct Risk
across our operations. The Group employs a risk-based, three
lines of defence approach to Conduct Risk Management,
where oversight, governance and controls are proportionate
to our assessment of the risk. We set target conduct outcomes
that the Group aspires to deliver for clients, external
stakeholders, employees, and the environment.
Code of Conduct and Ethics
The Code of Conduct and Ethics remains the primary tool
through which we communicate our conduct expectations.
Itis aligned with our Stands, strengthening the link between
ethics, culture, conduct, leadership and the Group’s strategy.
The code is intended to be more than a guidance document,
rather, it is a code to live by, designed to guide colleagues
through how to live our valued behaviours on a day-to-day
basis, whatever their business, function, geography or role.
Toguide us, the code has been shaped around 10 conduct
outcomes and connects these to our culture, valued
behaviours, and ethics. In June 2025, we celebrated Global
Conduct Week with the theme #maketherightcall.
Throughout the event, we translated #maketherightcall into
three core actions: leading with integrity, using conduct as an
accelerator driving the Group’s strategy, #KnowTheRules and
strengthening our commitment to ethical decision-making.
Speaking Up
Our Speaking Up programme provides a safe, independent
and confidential way to report whistleblowing concerns.
Itisaimed at helping to build and maintain a strong ethical
culture, with integrity, trust, and transparency.
The early disclosure of concerns reduces the risk of financial
and reputational loss caused by misconduct. We encourage
colleagues, contractors, clients, suppliers and members of the
public to raise concerns through the Speaking Up channels.
These channels enable whistleblowing concerns to be raised
in various ways, such as via email, a web portal, a telephone
hotline (where available), or by speaking to someone in their
line management, who may or may not be their usual People
Leader (available for employees only). When a concern
israised, our Group Investigations team will determine
whetherthe matter is within the scope of the Speaking Up
programme or should be investigated via another means,
forexample asa grievance.
To reinforce our shared commitment to the
highest possible standards of conduct, each
year we ask our colleagues to reconsider
what the code means to them through a
mandatory refresher e-learning, and to
reaffirm their commitment. In 2025, 99.7
percent of our colleagues completed
themandatory training and affirmation
(99.9percent in 2024).
Colleagues who are overdue without a valid
reason are subject to a 25 per cent reduction
in their annual variable compensation for
theyear they failed to attest.
99.7%
of employees affirmed recommitment
toour Code annually
Read our Code of Conduct and Ethics at
sc.com/codeofconductandethics
Standard Chartered | Annual Report 2025118
Throughout 2025, we hosted a series of awareness
campaigns to ensure that we continue to create an
environment where everyone feels secure and empowered
tospeak up. Global Conduct Week was held from 23–27 June,
themed #maketherightcall, to celebrate good conduct, lead
with integrity, reinforce our valued behaviours and promote
the importance of ethics and trust. All interactive panels were
aimed to encourage colleagues to think about how their daily
decisions and individual actions can aggregate to a much
wider impact on our business strategy and outcomes for our
clients, regulators, communities, and other stakeholders.
We also marked World Whistleblowers Day as part of
GlobalConduct Week. Colleagues were reminded about our
commitment to create an environment where everyone feels
safe and empowered to use our Speaking Up channels to raise
concerns or instances of behaviour that contradict our code.
Our Compliance, Financial Crime and Conduct Risk (CFCR)
team sets our Financial Crime Risk management framework.
We seek to protect our clients and communities against
money laundering, terrorist financing, sanctions, fraud,
andother risks, by applying core controls such as client due
diligence, screening and monitoring, and strengthening our
people’s understanding as to how to identify, manage and
mitigate such risks. We implement the same set of restrictions,
controls, analysis, and response across our entire organisation
in all locations. In addition, anti-bribery and corruption (ABC)
and fraud prevention controls aim to prevent colleagues,
orthird parties working on our behalf, from engaging
infraud,bribery or corruption.
Our mission doesn’t stop at our door – we are on the front
linein the fight against financial crime and our commitment
is global, extending beyond countries in which we have
aphysical presence. To achieve our aspiration to be a leader
in the fight against financial crime, we team up with other
banks, governments and regulators around the world to raise
the bar across the industry and devise innovative ways to
stop criminals in their tracks. Throughout 2025, we actively
participated in various industry groups, including The
Financial Action Task Force, Madison Group, UK Finance
andas amember of The Wolfsberg Group of 12 global banks.
Wecontinue to keep pace with the identification and analysis
ofcriminal networks through our technology and process
capabilities, focusing on the proactive use of data to support
early detection and prevention.
Working across our public and private sectors, we are
committed to finding increasingly more effective ways tofight
financial crime, to protect the communities we serve through
providing outreach programmes as part of our aspiration
toraise awareness on financial crime risks andraise the bar
across the industry. Our public–private partnerships are aimed
at producing new insights about various criminal typologies
and advances in how we collectively combat financial crime
in an increasing number of jurisdictions, including Singapore,
Hong Kong, South Africa, India, the UK, US and UAE.
Furthermore, we have worked with law enforcement agencies
and regulators to raise awareness of financial crime and
tobuild their capability to prevent, detect and investigate.
Sanctions on Russia remain a significant area of focus.
In2025, the attention continued to be on multilateral and
multiagency measures to prevent evasion or circumvention
ofsanctions (for both Russia and Iran) and evolving export
controls on Russia.
For those in high-risk roles and functions, we delivered
additional training across all financial crime areas, including
in-depth awareness on Russia sanctions, managing
proliferation financing risk, ABC training for targeted roles,
training on tax evasion risk, trade AML, financial crime risks
infintech and digital assets, and money laundering risks
concerned with money mules and shell companies. We also
delivered a targeted training module covering ESG and
ABCrisk, and a new module on FCC Threat-Based Risk
Management (TBRM), which is part of the FCC Academy
learning programme for CFCR colleagues. In addition,
masterclasses and forums were held to deepen understanding.
The Speaking Up programme continues
tobeused across all countries, businesses
and functions, and our 2025 My Voice survey
found that there continued to be a high
degree of confidence in the programme.
86per cent of employees felt comfortable
raising concerns through the Speaking Up
channels (2024: 87 per cent). Each year, the
Board reviews a Speaking Up report, which
provides an overview of the effectiveness
ofthe programme. For the period July 2024
to June 2025, Speaking Up channel usage
increased by 5 per cent compared to the prior
12 months. The volume of concerns raised via
the Speaking Up channels by the Group’s
employees are now at the highest level
infiveyears, representative of returning
topre-COVID-19 numbers and due to an
anticipated increase in concerns during
timesof transformation.
86%
of employees felt comfortable raising
concerns through Speaking Up channels
(My Voice survey 2025)
Read more about our Speaking Up programme at
sc.com/speakingup
Fighting financial crime
Access to the financial system helps transform lives around
the world, helping to reduce poverty and spur economic
development. However, the financial system is also used
bythose involved in some of today’s most damaging crimes
– from human trafficking to terrorism, corruption and the
drugtrade. The Group is committed to preventing, detecting,
andreporting criminals who move money through the
banking system.
Annual Report 2025 | Standard Chartered 119
Sustainability review
This was further supported by our Group-wide financial
crimeawareness campaign, ‘The Whole Story’, which brings
together the Group’s leaders and external experts in a series
of internally broadcast briefings, case studies and panel
discussions. The two-week internal campaign returned for
its10
th
year in 2025, with the theme ‘#Awareness to Action’,
which emphasised the need for all colleagues to focus on
theimportant role they have to play in tackling financial
crime through vigilance and timely escalation.
In 2025, no legal cases concluded in which allegations of
corruption had been made against the Group or its employees.
Complaints management
Formal avenues are established for WRB clients to lodge
complaints. A complaints-handling process has been put
inplace to enable the proper receipt, acknowledgement
andindependent and effective handling of complaints,
which are to be resolved and notified to clients within
areasonable turnaround time without compromising
thequality of thereview.
Global key complaints insights, trends and root causes
areprovided to the WRB Risk Committee. Examples of key
metrics that are used to track and manage complaints
acrossWRB markets include: total number of complaints
received in the period split by type and root cause, including
sub-categories such as potentially inappropriate sales,
proven mis-selling or fraud, and percentage of complaints
resolved within the predetermined turnaround time.
Collections and recoveries
The Group has a set of comprehensive policies that govern
collections and recoveries for all WRB segments, in line with
the Group’s Enterprise Risk Management Framework (ERMF)
and under the oversight of the CRO, WRB as Risk Framework
Owner. Oversight and governance of WRB retail collections
are also the responsibility of the WRB Risk function, with
regular reviews of performance metrics and complaints
handling data.
The Group’s credit policies outline the high-level requirements
with respect to all WRB collections and recoveries, which
include the following:
• Ensuring that all collections staff receive appropriate
training and demonstrate sufficient familiarly with the
relevant Code of Conduct and internal policies prior
toundertaking any collection activities.
• Providing fair and reasonable treatment to clients,
regarding any allowed concession or waiver.
• Adhering to all applicable legal and regulatory
requirements, as well as aligning calling and visitation
hours to local regulations and practices.
• Monitoring and regularly reviewing all client interactions
with the Collections teams, including complaints
andfeedback, to ensure compliance with the Group’s
CodeofConduct, internal policies and effective
managementoversight.
• Offering temporary or permanent modifications to loan
terms when required.
Across the Group, while the approach may vary across
markets in line with local regulations, programmes to assist
retail banking borrowers in financial distress are detailed in
local Collections departmental guidelines that comply with
the Group policy requirements.
Each collection and recoveries process is designed to be
transparent, efficient and supportive, ensuring that both the
Group and the clients have the required information to
manage the account and the financial distress situation.
We have invested significantly to ensure our
employees are properly equipped to combat
financial crime. In 2025, 99.7 per cent of
colleagues and governance body members
completed financial crime mandatory
e-learnings, covering topics such as ABC,
AML including terrorist financing, sanctions,
tax evasion and fraud (Asia: 99.6 per cent,
AME: 99.9 per cent, EA: 99.96 per cent,
governance body members: 100 per cent).
Thiscompares with 99.8 per cent in 2024.
99.7%
of colleagues and governance members
completed financial crime mandatory
e-learnings.
1
1 Governance body members represent Standard Chartered PLC
Board members . Colleagues represent permanent employees
ofthe Group as well as fixed-term workers employed by the
Group forafixed period.
Responsible lending and fair treatment
ofretailclients
The Board of Directors provides oversight of the Group’s
treatment of WRB retail clients through its reporting and
committee structures. The relevant governance forum or Risk
Committee is required to challenge the business for any new
or material product proposals prior to the commencement
ofthe product approval process, and there are periodic
governance forums to monitor customer complaints and
collections effectiveness.
Escalations may be taken to the WRB Risk Committee
chaired by the WRB Chief Risk Officer or the Group Risk
Committee chaired by the Group Chief Risk Officer, and
ultimately to the Group’s Board and Board Risk Committee.
Read more about the Board Risk Committee onpage170
Integrity, conduct and ethics
Standard Chartered | Annual Report 2025120
All employees responsible for dealing with clients in financial
distress are required to undergo mandatory training prior
tocommencement of any collection activities. In particular,
training topics include the Group’s Code of Conduct and
Ethics, principles of ‘treating clients fairly’, approaching
situations with a client-centric mindset, understanding the
client’s situation and using the right negotiation skills.
Existing employees also undergo regular training to refresh
and reinforce appropriate ways of dealing with clients who
are undergoing financial distress. Communications guidance
is regularly updated to reflect common circumstances
encountered in our markets.
Where external collections agencies are utilised, these agencies
also undergo assessment and due diligence in accordance
with the Group’s sourcing standards. Their employees
mustundertake the same training as the Group’s internal
Collections teams and are subject to monitoring to ensure
theirconduct complies with Group Collections standards.
The retail collection process typically begins with a
service-oriented reminder sent to the client. This could be
inthe form of an email, SMS, or a phone call, reminding them
of the overdue payment and encouraging them to settle their
account promptly and avoid late fees.
In cases where clients may face financial distress and are
willing and able to pay through modified payment plans,
theCollections team will have the due conversations and
work with these clients to negotiate loan modification
(further details below), settlement and payment plans that
are affordable to ensure the best outcome for both parties.
Based on the strategic approach and the operating rhythm
adopted, certain markets may utilise third-party collections
agencies, which specialise in recovering outstanding debts,
tohandle certain segments of collections and recoveries
cases. The external agencies utilised are subject to ongoing
oversight from the Group throughout the entire process
toensure adherence to the Group’s principles of respecting
client rights and ensuring that all collection practices are
ethical and lawful.
Clients and products
Our five largest clients together accounted for 2.1 per cent
ofour total operating income in the year ended 31 December
2025. We aim to design and offer products based on client
needs to ensure fair client treatment and to support fair
outcomes for clients. The 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.
In 2025, the total number of client complaints in CIB was 1,170
(1,585 in 2024). In WRB, we received 119,472 client complaints
(201,901 in 2024), an average of 1.83 per 1,000 active
clientsper month.
Loan modifications
Loan modification options may be offered to our clients
inaccordance with local regulations and the Group’s internal
credit policies, which consider the most recently available
information on the client’s income, expenditures and
circumstances. Collections staff managing these arrangements
are trained to discuss options thoroughly with clients to agree
on restructured payments that are in alignment with their
financial situation.
Data privacy and protection
The Group is committed to safeguarding personal data
through strong governance, oversight and accountability
frameworks. The Group’s Privacy Notice is the primary tool
through which we fulfil our transparency obligations and
communicate to our customers and stakeholders how we
collect, share, protect and process personal data, which we
operate in accordance with the data protection laws and
regulations of the jurisdictions in which we operate.
Our Compliance, Financial Crime and Conduct Risks (CFCR)
team sets our global Data Privacy risk and compliance
management framework. Compliance with our Privacy
obligations is monitored by the CFCR team under our
Compliance Principal Risk Type Framework. The Group
maintains a formal mechanism to conduct Data Protection
Impact Assessments where required, and we conduct regular
reviews and risk assessments to ensure ongoing compliance
with the Group’s Data Privacy Standard and applicable
Privacy obligations and to assess, monitor and assure
theeffectiveness of Privacy controls. The mechanisms for
overseeing and governing Data Risks (including Data Privacy
risk) are embedded within the Group’s governance structures,
and are implemented through regular reporting to the Board
and Senior Management, through the Board Risk Committee,
Board Audit Committee, Group Risk Committee and individual
Business and Functions’ Non-Financial Risk Committees.
The Group maintains a formal data breach notification
process aligned with regulatory obligations. This process
ensures that any data breaches are promptly assessed,
escalated, and remediated through clear accountability,
coordinated communication, and close collaboration among
reporters and key functions, in accordance with internal
guidelines. In 2025, no material data privacy breaches were
reported, reflecting the continued effectiveness of the
Group’scontrols and response capabilities.
The Group continues to raise awareness of the importance
of,and cultivate a strong culture of accountability in relation
to, Privacy particularly through the Code of Conduct and
regular mandatory Privacy training, such as the Group’s
Privacy and Data Sovereignty Awareness module which
isapplicable to all employees.
Read more on our Privacy Notice at sc.com/dataprivacy
and our Code of Conduct and Ethics at
sc.com/codeofconductandethics
Annual Report 2025 | Standard Chartered 121
Sustainability review
Sustainability governance
Sustainability-related risks, opportunities and organisational
implications are overseen by the Group’s Board, Management
Teamand supporting committees.
Board oversight of sustainability and
climate-related risks and opportunities
The Board is responsible for the long-term success of the
Group and its strategy. Embedding sustainability across our
business is a key strategic priority for the Group, and ultimate
responsibility for this sits with the Board. Oversight is exercised
through the appointment of supporting committees that
consider sustainability and climate-related risks and
opportunities when reviewing and guiding strategic decisions.
Through these committees the Board has oversight of the
progress against the Group’s external commitments,
Sustainability Aspirations and delivery against key sustainability
priorities including sustainable finance, Position Statements,
human rights and community engagement. Since 2019, the
Board has approved changes to the Climate Risk Appetite
Statement annually to reflect our aim to measure and manage
the financial and non-financial risks arising from climate
change and to reduce emissions related to the Group’s
ownactivities, including those associated with providing
financialservices to clients, in line with the Paris Agreement.
To reflectthe combined Climate Risk and Reputational and
Sustainability Risk, a combined Risk Appetite Statement has
been in effect from 2025 for a more comprehensive coverage.
Management-level governance
Supporting the Board in its strategic decisions is the Group
Management Team (GMT) and its supporting committees.
Each member of the GMT is responsible for strategically
driving sustainability considerations within their market(s),
client segment or function in line with our net zero roadmap.
The management committees hold the ultimate decision-
making authority over all material sustainability initiatives
and can direct actions as necessary for areas of improvement
to ensure their effective implementation. This includes
ensuring the effective management of Climate Risk and the
net zero roadmap in support of the Group’s strategy, as well
as overseeing Risk Appetite metrics.
The responsibility for the Group’s risk management approach
and overall second line of defence for Climate Risk sits with
the GCRO as the appropriate senior management function
under the Senior Managers Regime. The GCRO is supported
by the Global Head, Enterprise Risk Management, who has
day-to-day oversight responsibility for Climate Risk.
Read more about the structure of our Board
andManagement Team on pages 130 to 139
Structural overview of our sustainability and climate-relatedgovernance
Board oversight of sustainability and climate-related risks and opportunities
Standard Chartered PLC Board
Board Risk Committee (BRC) Audit Committee (AC) Culture and Sustainability
Committee (CSC)
Management-level governance
Group Management Team
Group Risk Committee (GRC) Group Responsibility
andReputational Risk
Committee(GRRRC)
Sustainability Executive
Committee (SustainabilityExCo)
Supporting governance
Executive committees
Corporate & Investment
Banking Client Review
Committee (CIB CRC)
Sustainable Finance
Governance Committee (SFGC)
Sustainability Operating
Steering Committee (SOSC)
Standard Chartered | Annual Report 2025122
Chair
Group Chair
Agenda frequency
and inputs
• Annual Strategy
Review
• Annual Sustainability
Strategy Update
• ESGR updates
delivered through
regular Group CRO
reports
Governance body
Standard Chartered
PLC Board
Chair
Independent Non-
Executive Director
Agenda frequency
and inputs
• ESGR Risk updates
provided to BRC in
regular Group CRO
reports
• One standalone
update on ESGR Risk
provided in
December 2025
Governance body
Board Risk Committee
(BRC)
Roles and responsibilities
• Oversee the Group’s key risks on behalf of the Board and act as the primary risk
committee at Board level that oversees ESGR Risk.
• Consider the Group’s RA and make recommendations to the Board on the Group’s RA
Statement including the ESGR RA.
• Assess risk types (including ESGR Risk) and the effectiveness of risk management
frameworks and policies.
• Oversee and challenge the design and execution of climate-related Group-wide
enterprise stress tests mandated by relevant regulation, when required.
Topics covered in 2025
• Reviewed and discussed an update on the ESGR Risks regulatory environment and
emerging risk areas; the Group’s ESGR Risk profile; and progress made on embedding
Climate Risk.
• Received Climate Risk Information Reports.
• Monitored adherence to RA metrics.
Supporting governance
The oversight and management of sustainability- and
climate-related risks and opportunities are integrated into
our business management. Several executive committees
operate under their terms ofreference, delineating
responsibilities, decision-making process, authority and the
escalation route for any material issues. Additionally, several
teams across our business, risk and functional areas are either
dedicated to, or spend aproportion of their time, working
onsustainability- andclimate-related activities.
We are also expanding governance and risk management
atthe regional, country and segment levels to better identify
and manage climate-related risks and opportunities.
Governance and steering committees
Several committees and steering groups support the Group’s
Board and Management Team on the management and
monitoring of sustainability and climate-related risks and
opportunities, and associated impacts on our business and
for our key stakeholders.
Roles and responsibilities
• Oversee the Group’s sustainability strategy, with input from the Culture and
Sustainability Committee.
Topics covered in 2025
• Considered the Group’s position on sustainability as part of the annual strategy
discussion.
• Approved the Group’s Risk Appetite (RA) Statement including ESGR RA and Board-level
RA metrics.
• Received an update on the Group’s sustainability strategy, including progress against
the four sustainability strategic pillars, the Group’s scorecard metrics and the tactical
action plan for 2026.
• Endorsed the 2026 sustainability priorities.
• Approved the 2024 Modern Slavery Statement, detailing the steps taken to manage
the risk of modern slavery in the business and its supply chain.
• Received updates on ESGR Risk.
• Received training on Climate Risk.
Annual Report 2025 | Standard Chartered 123
Sustainability review
Chair
Independent Non-
Executive Director
Agenda frequency
and inputs
• Annual climate
disclosures within the
Group’s Annual
Report and control
environment in Q4
• Group’s Net Zero
models in May
Governance body
Audit Committee (AC)
Chair
Independent Non-
Executive Director
Agenda frequency
and inputs
• Three times in 2025
Governance body
Culture and
Sustainability
Committee (CSC)
Sustainability governance
Roles and responsibilities
• Review the Group’s overall Sustainability Strategy.
• Review progress against the Group’s external commitments, Sustainability Aspirations
and delivery against key sustainability priorities.
• Monitor the implementation and delivery of the Group’s public commitment to net zero
emissions by 2050.
• Monitor emerging sustainability issues that require board-level oversight and/or
external stakeholder engagement.
• Monitor progress against the ESG Ratings Strategy Roadmap.
• Review sustainability measures included in the Group annual and/or LTIP scorecards.
Topics covered in 2025
• Reviewed and discussed the Group’s Sustainability Strategy and 2026 priorities.
• Reviewed progress on the Group’s net zero roadmap and endorsed the approach
toannually disclose the Group’s methane portfolio emissions intensity.
• Received updates from the CSO on emerging sustainability issues, peer bank
developments, policies and developments impacting the Group’s key markets, and key
initiatives.
• Considered progress on the Group’s sustainability-related aspirations and endorsed the
modification of two existing KPIs.
• Reviewed progress on the Group’s sustainability-related memberships
• Monitored the Group’s performance on the prioritised external ESG ratings agencies.
• Received training on the Group’s Innovation Hubs (including debt for sustainable
development swaps) and the Global Energy Transition Trends.
• Reviewed the sustainability measures included in the Group annual and LTIP
scorecards.
• Reviewed progress made against Modern Slavery Statement commitments.
Roles and responsibilities
• Oversee the Group’s financial and non-financial reporting.
• Review the operation and effectiveness of the Company’s systems and controls in
relation to whistleblowing systems.
Topics covered in 2025
• Reviewed changes to the climate and GHG emissions-related quantitative disclosures
to be reported in this Annual Report and the key controls around those quantitative
disclosures.
• Received an update on the Group’s net zero models and the validation of these under
the Group’s Model Risk Management framework and provided feedback to
management.
• Reviewed the principal non-financial disclosures made by Standard Chartered,
including the publication of ESG reporting and Task Force on Climate-related Financial
Disclosures (TCFD).
Standard Chartered | Annual Report 2025124
Chair
Group Chief Risk Officer
(GCRO)
Agenda frequency
and inputs
• ESGR Risk updates
were regularly
provided to the GRC
via the Group Risk
Information Report
and GCRO Report
Governance body
Group Risk Committee
(GRC)
Chair
Global Head of
Enterprise Risk
Management (ERM)
Agenda frequency
and inputs
• Sixteen times in 2025
Governance body
Group Responsibility
and Reputational Risk
Committee (GRRRC)
Roles and responsibilities
• Oversee the effective implementation of the Enterprise Risk Management Framework
(ERMF) for the Group, including the delegation of any part of its authorities to
appropriate individuals or properly constituted committees below the GRC.
• Review RA for all Principal Risk Types (PRT) including ESGR Risk across the Group, to
ensure that this is within the approved Board RA and Management Team (MT) limits.
Topics covered in 2025
• Received updates on RA, portfolio risks, recent NGO activity, regulatory updates,
netzero, management and local regulatory stress tests via Group CRO Report.
• Received an annual update on ESGR risk, which included: regulatory updates;
reputational risk profile updates in CIB, WRB and for third parties; climate risk
integration in country risk, credit risk for CIB and WRB, operational and technology risk,
country risk, treasury risk, liquidity risk; and scenario analysis and corporate planning.
• Received regular updates on ESGR risk (including Reputational Risk Materiality
Assessments and Environmental and Social Risk Assessments, and Climate Risk
updates), RA MT Limit and Board RA metrics and monitored adherence to these as
partof the GRC Risk Information Report.
Roles and responsibilities
• Oversee and approve Position Statements including sector-specific and cross-sector
statements including Climate Risk.
• Oversee ESGR-related RA metrics.
• Escalate very high or high ESGR matters to the GRC and BRC as appropriate
• Make decisions on high-rated clients and/or transactions that are based on the
relevant ESGR assessments, while considering trade-offs associated with ESGR risks and
opportunities.
Topics covered in 2025
Reviewed and approved:
• Clients and/or transactions with high ESGR risks.
• The Green and Sustainable Product, Transition Finance and Sustainable Bond
frameworks.
• The process for net zero portfolio steering and governance, including:
1 evaluating clients’ transition plans
2 refreshed financed emissions data for clients in sectors where the Group has set net
zero targets
3 ongoing approach to net zero portfolio management.
• Updates for cross-sector and sector-specific Position Statements.
Annual Report 2025 | Standard Chartered 125
Sustainability review
Chair
Head, Global
Sustainability
Engagement and
Disclosures
Agenda frequency
and inputs
• At least six times
ayear
Governance body
Sustainable Finance
Governance Committee
(SFGC)
Chair
Chief Sustainability
Officer (CSO)
Agenda frequency
and inputs
• Three times in 2025
Governance body
Sustainability
Executive Committee
(Sustainability ExCo)
Sustainability governance
Roles and responsibilities
• Provide leadership, governance and oversight in delivering the Group’s sustainable
financeofferings.
• Review and endorse sustainable finance products and frameworks.
• Guide the Group in identifying opportunities in sustainable finance and managing the
greenwashing risks relating to sustainable finance.
• Oversee appointment, training and qualifications of empowered approvers.
Topics covered in 2025
Reviewed and approved:
• Sustainable finance products including sustainable cash products, sustainable trade finance
products and sustainable finance wealth and retail products.
• Green and sustainable finance transactions including transactions with climate-related KPIs.
• The Group’s GSPF and Sustainable Bond Framework, encompassing a range of climate
finance activities.
• The Group’s TFF outlining our approach to defining transition activities.
• The Group’s approach to pureplay clients which align to the Group’s GSPF and TFF.
• Reviewed and appointed new empowered approvers in alignment with CIB’s geographic
coverage cluster model.
Roles and responsibilities
• Direct actions as necessary for areas of improvement to ensure the effective
implementation of sustainability initiatives.
• Review findings and escalations from delegated committees (including but not limited
to the Sustainability Operating Steering Committee).
• Oversee the net zero programme.
Topics covered in 2025
Discussed:
• Group’s 2026 Sustainability Strategy.
• Group’s prioritised ESG ratings.
• Annual Review of memberships, commitments & aspirations.
• Net zero progress.
Standard Chartered | Annual Report 2025126
Chair
Global Head,
Sustainability Strategic
Initiatives
Agenda frequency
and inputs
• At least eight times
ayear
Governance body
Sustainability
Operating Steering
Committee (SOSC)
Co-Chairs
Global Head,
International
Corporates and CCO
and Head, CIB Advisory,
UK and Europe
Agenda frequency
and inputs
• Monthly
Governance body
Corporate &
Investment Banking
Client Review
Committee (CIB CRC)
Roles and responsibilities
• Central forum where all strategic objectives related to sustainability are consolidated,
prioritised and agreed upon
• Oversee and monitor milestones and deliverables of sustainability initiatives with a focus
onprogramme updates, including schedule, business benefits and cost
• Ensure sustainability investment budget is centrally prioritised and allocated to businesses
and functions quarterly performance reviews
• Be a forum for escalation and decision-making to remove impediments and mitigate risks
across all relevant non-financial risk types relating to delivery of the work in accordance with
the CSO’s objectives and key results and KPIs
Topics covered in 2025
• Enforced accountability and fostered collaboration across the Group to operationalise
theGroup’s net zero plan requirements and the broader sustainability agenda
• Advanced the pan-bank ESG data and digital strategy and capabilities to embed
sustainability into the client and deal lifecycle, enabling the Group’s sustainability ambition
and CSO strategic priorities
• Enabled accurate ESG data capture, mitigating operational and greenwashing risks while
facilitating accurate and timely reporting and disclosures
• Aided the implementation of the Bank’s ESG platform, consolidating ESG data and enabling
business lines to assess ESG risks
• Provided updates on advancement within the Group’s Innovation Hubs
Read the Committees’ terms of reference at sc.com/committees
Roles and responsibilities
• To serve as a forum for assessing corporate responsibility and stakeholder perception
onenvironmental, social, climate risk, net zero and other related policies when onboarding
or maintaining CIB clients
• Approve or reject new client relationships and make decisions on exiting or retaining
existing ones in line with the relevant policies
• Establish clear responsibilities for escalation to the Committee so that decisions are made
as close to the front line as appropriate
Topics covered in 2025
• Client submissions regarding sanctions risk, defence and dual use goods, sensitive clients
and reputational risk
• Coal related exits – client entities that are dependent on thermal coal revenue and will
breach our step-down thresholds
• ESGR approvals for previously medium/high risk cases where the risk profile
remainsunchanged
• Updates from the Net Zero & Climate Risk Working Forum (NZCRWF)
• CIB client committees exits tracking
Annual Report 2025 | Standard Chartered 127
Sustainability review
Incentive structure
Variable remuneration is based on measurable performance
criteria linked to the Group’s strategy, including our
sustainability-related goals and targets, which are overseen
by the Remuneration Committee and the Culture and
Sustainability Committee.
Discretionary annual incentives
The Group scorecard, which contains financial and strategic
measures, is a key input in determining the Group’s variable
remuneration pool. Sustainability-related measures were
included in the 2025 Group scorecard with our Scope 1 and 2
net zero emissions targets now achieved. We continue to
include sustainability in the 2026 Group scorecard related to:
• Growing sustainable finance income in our CIB network.
• Net zero decarbonisation: reducing our financed emissions
for key sectors in line with our risk appetite.
Long-term incentive plan (LTIP)
LTIP awards are granted to members of the Group
Management Team and may also be granted to other
employees in the Group. Sustainability measures continue
tobe included in the 2026-2028 LTIP, focused on our net zero
pathway as follows:
• Accelerating zero: progress towards our 2030 sustainable
finance mobilisation target in each of the three
performance years.
• Net zero decarbonisation: reducing our financed emissions
for key sectors being assessed on annual year-on-year
emission reductions.
Read more in the Directors’ remuneration report
onpages180 to 206
Key individuals or teams with climate-related objectives which impact variable remuneration
In addition to the Group scorecard and LTIP performance measures, dedicated climate- and sustainability-related objectives
apply across functional and regional scorecards including the Risk function, and individual objectives add a further link between
sustainability outcomes and reward.
Individual or team Objectives/performance linkage
Group Management Team
(GMT)
Members of the GMT are eligible for an annual incentive based on the outcome of our
Groupscorecard and an LTIP award which both include sustainability-related measures.
Readmore on pages 180 to 206.
Group Chief Risk Officer
(GCRO)
The GCRO is responsible for the overall second line of defence for Climate Risk as the
appropriate senior management function under the senior managers regime. The GCRO
issupported by the Global Head, Enterprise Risk Management, who has day-to-day
oversightresponsibility for Climate Risk.
Chief Sustainability Officer
(CSO)
The CSO is responsible for setting and driving the Group’s sustainability strategy, including
delivering on the Group’s public sustainability commitments. The CSO organisation houses
the Group’s sustainability strategy, net zero delivery, strategic initiatives, Innovation Hubs
andESRM teams. Performance measures for the CSO include progress against the delivery
ofthe Group’s net zero roadmap and sustainable finance targets.
Global Head of Supply
Chain Management (SCM)
The Global Head of SCM is responsible for the delivery of upstream Scope 3 supply chain
(categories 1, 2, 4 and 6) emission reductions and climate-related supply chain objectives
andtargets.
Global Head of Corporate
Real Estate Services
(CRES)
The Global Head of CRES is responsible for delivering on our aim to maintain net zero
emissions in our Scope 1 and Scope 2 emissions, and to track and monitor Scope 3
(Category5,7 and 13) emissions.
All employees Selected sustainability-related targets are incorporated into our annual Group scorecard,
which is a key input in the setting of the employee annual incentive pool.
Sustainability governance
Standard Chartered | Annual Report 2025128
Directors’
Report
Case study
Partnering with
Liverpool FC,
Formula 1
®
andsponsoring
marathons
In 2025, our partnerships with Liverpool Football
Club and our sponsorship of marathons andglobal
races went from strength to strength.
Liverpool Football Club returned to Asia for their Summer
Tour, visiting Hong Kong – their first visit tothe market
ineight years – and Japan.
Meanwhile, 2025 was a milestone year for our marathons
and global races. The year marked the 20
th
anniversary
oftheGreat City Race 5km corporate runin London and
the20
th
edition of the Standard Chartered Jersey Marathon.
In January 2026, we announced a new Sponsorship with
Formula 1® as Official Wealth Management Partner and
Official Corporate & Investment Banking Partner to the
globalracing series.
Read more: sc.com/sponsorships
In this section
130 Board of directors
134 Compliance statement
135 Management Team
138 Corporate governance
155 Committee reports
180 Directors’ remuneration report
207 Other statutory and regulatory disclosures
217 Statement of directors’ responsibilities
Annual Report 2025 | Standard Chartered 129
Directors’ report
1
2
3
4
5
6
7
8
9
10
Board of Directors
1
Dr Linda Yueh, CBE
Independent Non-Executive Director
2
Shirish Apte
Independent Non-Executive Director
3
Lincoln Leong
Independent Non-Executive Director
4
Maria Ramos
Group Chair
5
Robin Lawther, CBE
Independent Non-Executive Director
From left to right
6
Diane Jurgens
Independent Non-Executive Director
7
Bill Winters, CBE
Group Chief Executive
8
Phil Rivett
Senior Independent Director
9
Jackie Hunt
Independent Non-Executive Director
10
David Tang
Independent Non-Executive Director
On 10 February 2026, we announced that Diego De Giorgi
stepped down from his role asExecutive Director and Group
Chief Financial Officer, and that Pete Burrill was appointed
asInterim Group Chief Financial Officer with effect from
10 February 2026.
Read more about Pete Burrill on page 135
Standard Chartered | Annual Report 2025130
Key to the Board committees
A
Audit Committee
Ri
Board Risk Committee
CS
Culture and Sustainability Committee
GN
Governance and Nomination Committee
R
Remuneration Committee
Denotes Committee Chair
Maria Ramos (67)
Group Chair
Appointed: January 2021 and Group
Chair in May 2025. Maria was
appointed to the Court of Standard
Chartered Bank in January 2021.
Nationality: South African, based
intheUK
Committees:
GN
Skills and experience: Maria has
extensive CEO, banking, commercial,
financial, policy and international
experience.
Career: Maria served as Chief Executive
Officer of ABSA Group Limited
(previously Barclays Africa Group),
from2009 to 2019. Before joining ABSA,
Maria was the Group Chief Executive
ofTransnet Ltd for five years. Maria
served for seven years as Director
General of South Africa’s National
Treasury. Maria has served on several
international boards, including Sanlam
Ltd, Remgro Ltd, and SABMiller plc, and
more recently was a non-executive
director of the Saudi British Bank and
Public Investment Corporation Limited
until December 2020 and Chair of
AngloGold Ashanti PLC until 2024. She
was also a non-executive director of
Compagnie Financière Richemont SA
before stepping down in March 2025.
External appointments: Member of the
Group of Thirty; International Advisory
Board member of the Blavatnik School
of Government at Oxford University;
Advisory Board member of the Wits
Foundation Board of Governors; Board
member of the Institute of International
Finance; Member of the Leadership
Council of TheCityUK; Member of the
Bretton Woods Committee; Board
member of the Institute of International
Finance; Member of the National
Financial Regulatory Administration
International Advisory Council;
andHigh-Level Private Sector
AdvisoryGroup member of Asian
DevelopmentBank.
Bill Winters, CBE (64)
Group Chief Executive
Appointed: June 2015. Bill was also
appointed to the Court of Standard
Chartered Bank in June 2015.
Nationality: American/British, based
inthe UK
Skills and experience: Bill is a career
banker with significant frontline
global banking experience and a
proven track record of leadership
and financial success.
Career: Bill began his career with JP
Morgan, where he became one of its
top five executives and later Co-Chief
Executive Officer at the investment
bank from 2004 until 2009. Bill was
acommittee member of the UK
Independent Commission on Banking,
where he recommended ways to
improve competition and financial
stability. Subsequently, he served as
anadviser to the UK Parliamentary
Commission on Banking Standards and
was asked by the Court of the Bank of
England to complete an independent
review of the Bank of England’s liquidity
operations. In 2011, Bill founded
Renshaw Bay, an alternative asset
management firm, where he was Chair
and CEO until his appointment to the
Standard Chartered PLC Board. Bill
received a CBE in 2013 and was
previously a non-executive director
of Pension Insurance Corporation plc
and RIT Capital Partners plc. He
stepped down as a non-executive
director of Novartis International AG
in March 2025.
External appointments: Non-executive
director at Stripe INC; Advisory Group
member of the Integrity Council for
Voluntary Carbon Markets; and Board
Advisor to the International
RescueCommittee.
Phil Rivett (70)
Senior Independent Director
Appointed: May 2020. Phil was
appointed to the Court of Standard
Chartered Bank in May 2020.
Nationality: British, based in the UK
Committees:
A
Ri
GN
R
Skills and experience: Phil has
significant professional accountancy
and audit experience in the financial
services sector.
Career: Phil joined
PricewaterhouseCoopers (PwC) in 1976,
becoming a partner in 1986. He spent
more than 30 years at PwC and was
lead relationship partner for several
FTSE 100 companies, including several
international banks and financial
services institutions. He has substantial
international experience, having
worked with banks across the Middle
East and Asia, particularly China.
Hebecame Leader of PwC’s Financial
Services Assurance practice in 2007
and was appointed Chair of its Global
Financial Services Group in 2011. Phil has
sat on several global financial services
industry groups, producing guidelines
for best practice in governance,
financial reporting and risk
management.
External appointments: Independent
non-executive director and Chair
oftheaudit committee at Nationwide
Building Society; and Independent
non-executive director at Virgin
MoneyUK PLC.
Annual Report 2025 | Standard Chartered 131
Directors’ report
Shirish Apte (73)
Independent Non-Executive
Director
Appointed: May 2022. Shirish was
appointed to the Court of Standard
Chartered Bank in January 2023.
Nationality: British, based in Singapore
Committees:
A
Ri
GN
R
Skills and experience: Shirish has
extensive corporate, investment
banking, risk management, commercial
and retail banking experience.
Career: Shirish spent more than 30
years with Citigroup, where he focused
on corporate and investment banking,
and managed commercial and retail
banking businesses at country and
regional level. He has strong risk
experience and was a Senior Credit
Officer and a Senior Securities Officer
at Citigroup. Shirish was Co-CEO for
Citi’s Europe, Middle East and Africa
business from 2008 to 2009, and
Regional CEO Asia Pacific from 2009
to2011. He was Chair of Asia Pacific
Banking from 2012 until his retirement
in 2014. He was on the Executive and
Operating Committees of Citigroup
from 2008 to 2014. From June 2014 until
October 2022, he was an independent
non-executive director at the
Commonwealth Bank of Australia.
External appointments: Independent
non-executive director at Singapore
Life Pte Ltd and Hillhouse Investments;
and Independent non-executive
director and Chair of the board risk
andnomination committees at Keppel
Corporation Limited.
Jackie Hunt (57)
Independent Non-Executive
Director
Appointed: October 2022. Jackie
was appointed to the Court
of Standard Chartered Bank in
October 2022.
Nationality: British, based in the UK
Committees:
A
Ri
GN
R
Skills and experience: Jackie is a
chartered accountant and has spent
most of her career within financial
services. She brings significant UK
andinternational financial services
experience, including asset
management, insurance, regulatory
and accounting knowledge.
Career: Jackie has held several senior
management positions at companies
including Hibernian Group, Norwich
Union Insurance (now Aviva), PwC
andRSA Insurance. From 2016 until
2021, she was a member of the Allianz
SE management board. Jackie was
anexecutive director of Prudential plc
and CEO of Prudential UK, Europe and
Africa. She was Group Chief Financial
Officer of Standard Life plc from 2010
to 2013, where she helped transform
the life insurer into a diverse savings,
pensions and asset management
business. Jackie was previously the
Senior Independent Director of
National Express Group PLC, a
non-executive director of TheCityUK
andthe Deputy Chair of the FCA
Practitioner Panel. She was also an
independent non-executive director
ofMan Group PLC, Rothesay Life PLC
and OneWeb Holdings Limited.
External appointments: Independent
non-executive director at Willis Towers
Watson plc; and Director of
ExtrapropUnlimited.
Board of Directors
Diane Jurgens (63)
Independent Non-Executive
Director
Appointed: March 2024. Diane
was appointed to the Court
of Standard Chartered Bank in
March 2024.
Nationality: American, based in the US
Committees:
Ri
CS
Skills and experience: Diane has
significant expertise in driving
technology, product development
andinnovation to transform business
operations across the mass media
andentertainment, mining, automotive
and aerospace sectors.
Career: From 2020 to 2023, Diane
wasExecutive Vice President and
ChiefInformation Officer at The Walt
DisneyCompany, where she oversaw
Disney’s global enterprise technology
organisation. From 2015 to 2020, Diane
was Chief Technology Officer of the
multinational mining and metals
company BHP, where, largely based
inSingapore, she was responsible for
leading capital programme delivery,
technology operations, cyber security,
data privacy, and research and
development. From 2012 to 2015, Diane
was President and Managing Director
of an American and Chinese joint
venture, Shanghai Onstar Telematics,
and was based in Shanghai. Prior
tothat, Diane held numerous senior
executive positions at General Motors
including several global roles across
many of the Group’s key markets.
External appointments: Non-executive
director of the World 50 Group; and
Dean’s Advisory Board member at
theUniversity of Washington College
ofEngineering.
Standard Chartered | Annual Report 2025132
Robin Lawther, CBE (64)
Independent Non-Executive
Director
Appointed: July 2022
Nationality: American/British, based
in the UK
Committees:
CS
Ri
R
Skills and experience: Robin brings
extensive international banking
experience in global markets and
financial institutions with specialist
knowledge in investment banking,
mergers and acquisitions, and
capitalraising.
Career: Robin spent more than 25 years
at JP Morgan Chasein several senior
executive positions. She has valuable
executive and non-executive
experience across global markets and
has considerable understanding of
regulatory and governance issues.
From2019 to 2021, she served as
anon-executive director on the board
of M&G plc. In January 2014, Robin
joined Shareholder Executive (now
UKGovernment Investments), as a
non-executive board member until
completing her term in May 2022. She
received a CBE for services to finance
and diversity in the Queen’s Birthday
Honours 2020. From 2016 to 2020,
Robin was a non-executive board
member of Oras Invest and from 2014
to 2023, she served as an independent
non-executive director of Nordea
BankAbp.
External appointments: Non-executive
director at ICG plc; Independent board
member at Ashurst LLP; and Global
Advisory Board member at Aon PLC.
Lincoln Leong (65)
Independent Non-Executive
Director
Appointed: November 2024.
Lincoln was appointed to the Court of
Standard Chartered Bank
in November 2024.
Nationality: Canadian/Chinese (HK),
based in Hong Kong
Committees:
A
Skills and experience: Lincoln is a
chartered accountant with experience
in investment management and
investment banking.
Career: Lincoln spent more than 15
years at MTR Corporation Limited
inarange of executive roles, becoming
itsChief Executive Officer from 2015
to2019. Prior to this he held a number
ofsenior roles within private equity
andinvestment banking including
asapartner at Capital Z Asia Limited,
Senior Vice President of Investment
Banking at Lehman Brothers Asia Ltd
and Director of, followed by Head of
Corporate Finance at Schroders Asia
Ltd. Lincoln started his career as an
accountant at PriceWaterhouse (now
PwC) in London and subsequently
joined PriceWaterhouse in Vancouver.
He was previously a non-executive
director of Jardine Strategic Holdings
Limited and Mandarin Oriental
International Limited, and an
independent non-executive director
ofLink Asset Management Limited
(manager of the listed Link Real Estate
Investment Trust) and SUNeVision
Holdings Ltd.
External appointments: Independent
non-executive director of Standard
Chartered Bank (Hong Kong) Limited;
Independent non-executive director
and Chair of the audit committee
ofthe China Resources Land Limited;
Non-executive director of Hongkong
Land Holdings Limited; Board member
and executive committee member
ofThe Community Chest of Hong
Kong; and Vice Chair supervisory board
member and executive committee
member of the Hong Kong
HousingSociety.
David Tang (71)
Independent Non-Executive
Director
Appointed: June 2019
Nationality: American, based in China
Committees:
CS
R
Skills and experience: David has
adeep understanding and experience
of emerging technologies most notably
in Mainland China.
Career: David has more than 30
yearsof international and Chinese
operational experience in the
technology and venture capital
industries, covering venture
investments, sales, marketing,
businessdevelopment, research and
development and manufacturing. From
1989 to 2004, David held several senior
positions in Apple, Digital Equipment
Corp and 3Com based in China and
across the Asia Pacific region. From
2004 to 2010, David held various
positions at Nokia, including Corporate
Vice President, Chair of Nokia
Telecommunications Ltd and Vice
Chair of Nokia (China) Investment Co.
Ltd. He went on to become Corporate
Senior Vice President and Regional
President of Advanced Micro Devices,
Greater China, before joining NGP
Capital (Nokia Growth Partners)
inBeijing as Managing Director and
Partner in 2013, a position he held until
June 2021. David was an independent
non-executive director of Kingsoft
Corporation, a Chinese software and
internet services company.
External appointments: Non-executive
director of JOYY Inc.; and Founding
member of the Hong Kong AI
Foundation.
Annual Report 2025 | Standard Chartered 133
Directors’ report
Dr Linda Yueh, CBE (54)
Independent Non-Executive
Director
Appointed: January 2023. Linda was
appointed to the Court of Standard
Chartered Bank in January 2023.
Nationality: American/British, based
in the UK
Committees:
CS
GN
R
Skills and experience: Linda is a
renowned economist and financial
broadcaster with a diverse range of
skills and experience across financial
services, technology, not-for-profit and
business-to-business service sectors.
Career: Linda has held various
academic and advisory roles after
starting her career as a corporate
lawyer. Linda was Economics Editor
atBloomberg News from 2010 to 2012
and Chief Business Correspondent for
the BBC from 2013 to 2015. She was
aVisiting Professor at LSE IDEAS at
theLondon School of Economics and
Political Science from 2019 to 2022
andserved on the Independent Review
Panel on Ring-Fencing and Proprietary
Trading for HM Treasury. Linda held
non-executive directorships with
Scottish Mortgage Investment Trust Plc,
London & Partners Ltd and JPMorgan
Asia Growth & Income Plc. She was
Senior Independent Director of Fidelity
China Special Situations Plc, Trustee
ofthe Coutts Foundation and Adviser
to the UK Board of Trade. Linda
wasawarded a CBE for Services to
Economics in the 2023 New Year
Honours List.
External appointments: Independent
non-executive director of Rentokil Initial
Plc and Segro Plc; Chair of the Baillie
Gifford The Schiehallion Fund Ltd;
Senior Advisor to the CEO at Greene
King; Fellow at St Edmund Hall,
OxfordUniversity; Adjunct Professor
ofEconomics at London Business
School; Trustee of the Fidelity UK and
International Foundations; Associate
Fellow at Chatham House; and
Advisory member of the UK Soft
PowerCouncil and the English Law
Promotion Panel.
Board of Directors
Scott Corrigan (59)
Group General Counsel and
Group Company Secretary
Appointed: November 2025
Nationality: American, based
in the UK
Skills and experience: Scott
joined the Bank in 2014 as
General Counsel, Americas.
Hepreviously held the Group
Company Secretary role
onaninterim basis from 2021
to2022. Scott is also Group
General Counsel, having been
appointed to the role in
January 2025. He leads the
Group’s Legal and Corporate
Secretariat teams globally.
Career: Scott has extensive
legal expertise, having
previously served as Assistant
District Attorney at the New
York County District Attorney’s
Office and as Enforcement
Counsel for the Federal
Reserve Bank of New York.
After leaving government
service, Scott represented
banks, other financial services
firms, and financial services
executives in government
investigations and civil
litigation. He also served in
avariety of managerial roles
as a law firm partner.
Compliance statement
The directors are pleased to
confirm that during 2025 the
Company complied with the UK
Corporate Governance Code
2024 (UK Code) and the Hong
Kong Corporate Governance
Code contained inAppendix C1
of the Hong Kong Listing Rules
(HKCode).
During 2025, an updated
version of the HK Code
waspublished that applies to
the Company’s financial year
ending 31 December 2026.
TheBoard has received
presentations on the changes
and discussed the actions to
betaken to prepare for
theirimplementation.
The Board and the Audit
Committee remained focused
on the Group’s progress towards
ensuring compliance with
Provision 29 of the UK Code,
which applies to the financial
year ending 31 December 2026.
Read more on page 168.
This Directors’ report, which
constitutes our corporate
governance report, provides
insights into how governance
operates within the Group
andhowwe have applied the
principles set out in the UKCode
and HK Code. Copies of the UK
Code and the HK Code can be
found at www.frc.org.uk and
www.hkex.com.hk, respectively.
The Group confirms that it has
adopted a code of conduct
regarding directors’ securities
transactions on terms no less
exacting than required by
Appendix C3 of the Hong Kong
Listing Rules. Having made
specific enquiries of all directors,
the Group confirms that all
directors have complied with
the required standards of the
adopted code of conduct.
A table setting out where
relevant information is disclosed
can be found in Other statutory
and regulatory disclosures
onpage 207.
Standard Chartered | Annual Report 2025134
Management Team
Appointed: May 2025
Nationality: American, based
inSingapore
Career: Noelle’s extensive career
spansmore than 30 years across
financial services, financial technology,
healthcare, and hospitality. She has
deep experience in areas from
modernising global technology to
driving core innovation, as well as
indata and analytics, cyber security,
product management and software
development. Noelle was named one
of the top 50 leaders in technology on
the Forbes CIO Next List in 2023 and
was listed in WomenTech network’s
100 Executive Women in Tech
toWatch for 2025.
Prior to joining the Bank, Noelle was the
Executive Vice President and Global
Chief Information Officer at The Cigna
Group, where she was responsible for
leading the digital, technology, data
and analytics and operations strategy.
Prior to joining The Cigna Group,
herprevious roles included Chief
Information and Digital Officer at
Hilton Worldwide Holdings, and Chief
Card Customer Experience Officer for
Capital One Financial Corporation.
Shealso held leadership roles at Intuit
and Teknowledge.
External appointments: None.
Appointed: February 2026
Nationality: American/British, based
inUK
Career: Pete was appointed as the
Interim Group Chief Financial Officer
inFebruary 2026, following tenure
asGroup Head, Central Finance
andDeputy Chief Financial Officer
since 2017. Additionally, he is Chair
ofthe Standard Chartered Bank AG
Supervisory Board, a position he has
held since March 2025, having joined
the Supervisory Board in 2019. Prior
tojoining the Bank, Pete was Group
Controller and Co-Head of Group
Finance at Deutsche Bank. Earlier in his
career, Pete spent almost 20 years at
KPMG, including 10 years in the United
States followed by 10 years in Germany.
External appointments: None.
Noelle Eder (56)
Group Head, Technology
&Operations
Bill Winters, CBE (64)
Group Chief Executive
Pete Burrill (54)
Interim Group Chief Financial
Officer
Appointed: January 2026
Nationality: British, based in the UK
Career: Jason was appointed as the
Group Chief Risk officer in January
2026, following tenure as Global
Headof Enterprise Risk Management
and Deputy Chief Risk Officer since
joining the Bank in September 2020.
Additionally, he was appointed
Co-Head, Chief Risk Officer, Corporate
& Investment Banking in July 2024
andto Standard Chartered Bank AG’s
Supervisory Board in January 2025.
Jason’s career in financial services
spans over three decades. Prior to his
role at the Bank, Jason accumulated
21years at Credit Suisse, where he held
a variety of senior positions including
Global Head of Enterprise and
Operational Risk Management and
CFO Credit Suisse Europe and Chief
Operating Officer for the Risk Division.
Earlier in his career, Jason spent a
decade at PwC, undertaking key roles
as Senior Manager and Manager in the
Financial Services Audit and Advisory
Groups across London, Moscow
andBirmingham.
External appointments: None.
Jason Forrester (56)
Group Chief Risk Officer
Read more about Bill
on page 131
Annual Report 2025 | Standard Chartered 135
Directors’ report
Management Team
Appointed: August 2024
Nationality: Chinese, based
inHongKong
Career: Mary is an executive director of
Standard Chartered Bank (Hong Kong)
Limited (SCBHK). She has over 30 years
of experience in business management
and banking services. Mary was the
Regional Head of Retail Banking,
Greater China & North Asia, before
being appointed CEO for Hong Kong in
March 2017, and took on an expanded
role as Cluster CEO for Hong Kong,
Taiwan and Macau in January 2021.
External appointments: Rotating
Chairor Vice Chair of the Hong Kong
Association of Banks; Vice President
ofthe Council of the Hong Kong
Institute of Bankers; Council member
ofthe Hong Kong Treasury Markets
Association; Member of the Hong Kong
Monetary Authority’s Banking Advisory
Committee; Member of the Hong Kong
Academy of Finance; Representative
ofHong Kong, Chinatothe Asia-Pacific
Economic Cooperation Business
Advisory Council; Council member
ofthe Hong Kong Management
Association; Member of the Belt and
Road & Greater Bay Area Committee
ofthe Hong Kong Trade Development
Council; Member of the Advisory
Committee on Development of
International Aviation Superhub;
Member of the Human Resources
Planning Commission; Board positions
in the Hong Kong Hospital Authority;
and Member of the Advisory Committee
on Corruption of the Independent
Commission Against Corruption.
Mary Huen (58)
CEO, Hong Kong and Greater
China & North Asia
Judy Hsu (62)
CEO, Wealth & Retail Banking
Appointed: October 2017
Nationality: Canadian, based
inHongKong
Career: Judy was appointed CEO,
Wealth & Retail Banking in January
2021. In addition, she has responsibility
for our ASEAN, South Asia, Greater
China & North Asia markets. She is
alsothe Chair of Trust Bank Singapore
Limited. Previously, Judy was Regional
CEO, ASEAN & South Asia, a position
she held from June 2018 and the CEO
for Standard Chartered Singapore from
2015 to 2018. She joined the Bank in
December 2009 as the Global Head
ofWealth Management and led the
strategic advancement of the division.
Prior to this, Judy spent 18 years
atCitibank, where she held various
leadership roles in its Consumer
Banking business in Asia.
External appointments: Independent
non-executive director of CapitaLand
Limited.
Appointed: December 2025
Nationality: Italian/Dutch, based
intheUAE
Career: Prior to his current role,
Robertowas Global Head of Financial
Markets from January 2017 and Global
Co-Head, Corporate & Investment
Banking from April 2024. He currently
has responsibility for our Europe,
Americas, Middle East and Africa
markets. Before joining the Bank,
Roberto was a partner at Brevan
Howard, leading the Liquid Portfolio
Strategies funds business. Previously,
hespent three years at UBS Investment
Bank in London leading the global
Securities Distribution business and
then co-heading the global Fixed
Income, Currencies and Commodities
division. Roberto spent 17 years at
Morgan Stanley where he held various
senior roles in fixed income derivatives,
led the global Emerging Markets Fixed
Income & FX business, and was latterly
Head of Global Interest Rates, Credit
and Currencies.
External appointments: Independent
non-executive director of MarketAxess
Holdings Inc.
Roberto Hoornweg (57)
CEO, Corporate & Investment
Banking
Standard Chartered | Annual Report 2025136
Benjamin Hung (61)
President, International
Tanuj Kapilashrami (48)
Chief Strategy & Talent Officer
Alex Manson (56)
CEO, SC Ventures
Appointed: April 2024
Nationality: Canadian, based
inHongKong
Career: Ben is the Chair of SCBHK,
Standard Chartered Bank (China)
Limited and Standard Chartered
Bank(Singapore) Limited. Ben joined
Standard Chartered in 1992 and has
held several senior management
positions spanning corporate,
commercial and retail banking. Prior
tohis current role, he was CEO, Asia,
overseeing the Bank’s presence in
21 markets. He was previously Regional
CEO for Greater China & North Asia
and CEO for the Bank’s Retail Banking
and Wealth Management
businessesglobally.
External appointments: Chair of the
Board of directors of the Hong Kong
Financial Services Development
Council; Member of the Hong Kong
Chief Executive’s Council of Advisers,
the Exchange Fund Advisory Committee
and the General Committee of the
Hong Kong General Chamber of
Commerce; Board member of the West
Kowloon Cultural District Authority
Board; Co-Chair of B20’s Finance and
Infrastructure; and Economic Adviser
atthe International Consultative
Conference on the Future Economic
Development of Guangdong Province,
Mainland China; and Visiting Lecturer
at Princeton University.
Appointed: April 2024
Nationality: British, based in the UK
Career: Tanuj heads Corporate
Strategy, Group-wide Transformation
and Corporate Functions (HR, Corporate
Affairs, Brand and Marketing, Supply
Chain Management and Corporate
Real Estate & Services). Before taking
on this role, Tanuj was the Group Head,
Human Resources from 2019, and
joined the Bank as Group Head, Talent,
Learning & Culture in 2017. Tanuj has
over two decades ofexperience in
theglobal financial services sector,
andprior to Standard Chartered, she
built her career at HSBC in a range of
country, regional and global leadership
roles across multiple markets, including
Hong Kong, Singapore, Dubai, India
and London. Tanuj was previously an
associate non-executive director of the
Board ofNHS England advising on their
workforce transformation agenda.
External appointments: Non-executive
director and member of the nomination
and remuneration committees of
JSainsbury’s PLC; and Member of the
Asia House Board of Trustees.
Appointed: August 2024
Nationality: French, based
inSingapore
Career: Alex is the CEO of SC Ventures,
which he set up in 2018. He joined
Standard Chartered in 2012 initially
asGroup Head, Wholesale Banking
Geographies, and later served as
Global Head, Transaction Banking.
Alex set up SC Ventures as a unit of
theBank to promote innovation, invest
in disruptive technology and build new
ventures to explore alternative business
models in the financial sector. Prior to
joining the Bank, Alex was at Deutsche
Bank for 12 years, where he held roles
including Global Head of Lending
andCorporate Banking Coverage and
Head Global Banking (IBD) Coverage
APAC. He started his banking career
atCredit Suisse, where he held roles
inthe Securitization Group, and
Derivatives & Structured Products.
External appointments: Board
member(various) for our ventures and
portfolio companies.
Annual Report 2025 | Standard Chartered 137
Directors’ report
2025 Board meetings attendance
AGM Scheduled
Maria Ramos (Group Chair) 8/8
Bill Winters, CBE (Group Chief Executive) 8/8
Diego De Giorgi (Group Chief Financial Officer)
1
8/8
Phil Rivett 8/8
Shirish Apte 8/8
Jackie Hunt 8/8
Diane Jurgens 8/8
Robin Lawther, CBE 8/8
Lincoln Leong 8/8
David Tang
2
7/8
Dr Linda Yueh, CBE 8/8
Dr José Viñals
3
3/3
1 Diego De Giorgi stepped down as Executive Director and Group Chief Financial Officer on 10 February 2026.
2 David Tang was unable to attend one scheduled meeting due to a family bereavement. David had access to all relevant materials prior to the meeting
andtheopportunity to provide feedback.
3 José Viñals stepped down from the Board on 8 May 2025.
Our Board at a glance
2025 Board priorities
In our commitment to deliver value through a culture of operational excellence, we focused on the following prioritiesduring 2025:
Board and committee changes
Oversaw the implementation of succession plans in
relation to the appointment of the Group Chair, Audit
Committee Chair and Risk Committee Chair.
Read more on page 157
Annual performance review
Appointed an external independent reviewer to
undertake the annual performance review of the Board
and its committees and received recommendations
toenhance performance.
Read more on pages 150 to 152
UK Audit and Corporate Governance
Reforms(ACG)
Oversaw the multidisciplinary Group-wide rollout on
theACG reforms, which went live on 1 January 2026.
Read more on pages 161 and 168
2025 governance outcome highlights
Directors’ remuneration policy
Received the support of shareholders for the new
Directors’ remuneration policy and the implementation
of the 2024 Directors’ remuneration report at our
2025AGM.
Read more on pages 146 and 181
Oversight of key
transformation
programmes
Navigating the geopolitical
environment
Sharpening execution
of the strategy
Succession planningInnovation and
sustainability
Risk, compliance and
regulatory
Standard Chartered | Annual Report 2025138
Group Chair and
INEDtenure
Ethnicity
Diversity as at 31 December 2025 Board and committee composition changes
Average
3.7 years
0 – 3 years
3 – 6 years
6 – 9 years
2
6
1
{3}{6}.{4}%
(2024: 33.3%)
White British/Other White
Asian/Asian British
7
4
Gender Senior positions
(GCE,GCFO, Group Chair
and SID)
{2}{5}%
(2024: 25%)
Women
Men
1
3
{4}{5}.{5}%
(2024: 41.7%)
Women
Men
5
6
Age Independence
44 – 55
56 – 65
66 – 75
2
5
4
Group Chair (independent upon
appointment)
Independent
non-executive directors
Senior independent director
Executive directors
1
7
1
2
1 January 2025
• Diane Jurgens and Jackie Hunt joined the
Board Risk Committee.
• David Tang stepped down from the
Board Risk Committee.
• David Tang and Jackie Hunt joined the
Remuneration Committee.
8 May 2025
• Maria Ramos succeeded José Viñals as Group Chair
and Governance and Nomination Committee Chair.
• Maria stepped down as Senior Independent Director,
Board Risk Committee Chair and as a member ofthe
Audit and Remuneration Committees.
• Phil Rivett was appointed Board Risk Committee
Chair,subject to regulatory approval, and assumed
the role immediately on an interim basis.
• Phil Rivett was appointed as Senior
IndependentDirector.
• Jackie Hunt was appointed as a member of the
Governance and Nomination Committee and, subject
to regulatory approval, was appointed as Audit
Committee Chair.
1 August 2025
• Phil Rivett received regulatory approval as Board Risk
Committee Chair.
15 September 2025
• Jackie Hunt received regulatory approval as Audit
Committee Chair.
1 January 2026
• Phil Rivett was appointed as a member
oftheRemuneration Committee.
10 February 2026
• Diego De Giorgi stepped down as Executive Director
and Group Chief Financial Officer.
Annual Report 2025 | Standard Chartered 139
Directors’ report
Board leadership and Company purpose
Governance structure
Section 172 Statement and
stakeholder engagement
See pages 37 to 41
Board activities
See pages 141 to 145
Board engagement with
ourshareholders
See pages 146 to 147
Roles and responsibilities
See page 149
Board committees
To assist in fulfilling its responsibilities, the Board delegates responsibilities to its five
committees: Audit, Board Risk, Culture andSustainability, Governance and Nomination,
and Remuneration. The Chair of each committee reports to the Board at every meeting,
ensuring that the Board retains suitable oversight of delegated matters.
With exception of the Governance and Nomination Committee (which is chaired
bytheGroup Chair), all the Board committees are composed of INEDs.
Group Chief
Executive and
Management
Team
The Board delegates
authority for the
operational management
of the Group’s business to
the Group Chief Executive
for further delegation by
him in respect of matters
that are necessary for
theeffective day-to-day
running and management
of the business. The Board
holds the Group Chief
Executive accountable in
discharging his delegated
responsibilities. The
Management Team
comprises the Group Chief
Executive and the Group
Chief Financial Officer,
client segment CEOs and
global function heads.
Ithas responsibility for the
day-to-day management
of the Group and for
executing its strategy.
Read more on pages
135 to 137
The Terms of Reference of the Board and its committees are available on our website at sc.com/termsofreference
Audit Committee
The Audit Committee is responsible for oversight and review of matters relating to
financial, non-financial and narrative reporting, the Group’s internal controls, including
internal financial controls, and the work undertaken by the Compliance, Financial Crime
&Conduct Risk (CFCR) function, Group Internal Audit & Investigations (GIAI) and the
Group’s Statutory Auditor, Ernst & Young LLP (EY).
Board Risk Committee
The Board Risk Committee is responsible for oversight of the Group’s key risks. It reviews
the Group’s Risk Appetite, and the appropriateness and effectiveness of the Group’s
Enterprise Risk Management Framework (ERMF), and assesses emerging and existing
principal risks. It also considers the implications of material regulatory change proposals
and due diligence on material acquisitions and disposals.
Culture and Sustainability Committee
The Culture and Sustainability Committee is responsible for oversight and review of the
Group’s culture and sustainability priorities.
Governance andNomination Committee
The Governance and Nomination Committee is responsible for advising the Board in
relation to the composition of, and appointments to, the Board and its committees, and
the development of a diverse pipeline for succession. The Committee also assesses the
independence of each INED and monitors and advises on the impact of changes to
corporate governance affecting the whole Group.
Remuneration Committee
The Remuneration Committee is responsible for setting the principles, parameters and
governance framework for the Group’s remuneration policy and overseeing its
implementation. This Committee determines the framework and policies for the
remuneration of the Group Chair, the executive directors and other senior management.
Italso oversees the alignment of reward, culture and the strategic priorities and oversees
the Fair Pay Charter.
Read more on pages 161 to 169
Read more on pages 170 to 175
Read more on pages 176 to 179
Read more on pages 155 to 160
Read more on pages 180 to 206
The Standard Chartered PLC Board
The Board is responsible for:
• The governance, strategic direction and performance of the Group, and the delivery ofsustainable value within
aframework of prudent and effective controls to which the Group’s culture is aligned.
• The Group’s engagement with key stakeholders and considering their views and interests during its discussions
anddecision-making.
• Overseeing the Group’s conduct and affairs and for promoting its long-term sustainable success.
Under its Terms of Reference, the Board has direct responsibility for specific matters, including approval of the Group’s
long-term objectives, purpose, valuedbehaviours, culture and commercialstrategy.
Standard Chartered | Annual Report 2025140
The Board maintains a comprehensive schedule of meetings
and a forward agenda to ensure meetings run efficiently
and effectively. Board meeting agendas are agreed in
advance by the Group Chair and Group Company Secretary,
ensuring adequate time is allocated to all items with a
balance between strategic, operational, financial and
governance matters. TheGroup Chair holds INED-only
meetings ahead ofeach scheduled Board meeting, which
provides the opportunity for discussion on key agenda items
and other matters without the executive directors and
management present.
The Board considers several standing items at each Board
meeting including:
• Group Chief Executive’s report
• Group Chief Financial Officer’s report
• Committee reports
• Group Company Secretary’s report, including updates
ongovernance matters.
In addition to the regular financial and operational
performance updates included in the Group Chief Executive
and GCFO reports presented to the Board at its regular
meetings, the Board also receives a monthly Group Chief
Executive newsletter and financial updates including
management accounts.
Board activities
Stakeholders considered
Relationships with our key stakeholders were actively
considered during Board and committee meetings, in
decision-making, and in the individual and collective
engagements that took place throughout the year.
Clients
Employees
Investors
Society
Suppliers
Regulators and governments
Read more on our stakeholder engagement on pages 37to41
Key activities during 2025
This table details some of the key areas of focus for the Board during 2025 and the relevant stakeholder groups
to which these areas align.
Activities Outcomes
Strategy
• Reviewed the Group’s strategy over two days at an offsite Board meeting.
Seepage 144 for further information.
• Received and discussed regular corporate development updates.
• Approved and monitored the Group’s exit from various markets and businesses
in the Asia, Africa and the Middle East regions.
• Received updates on the Group’s Investor Relations strategy.
• Reviewed and discussed the progress and evolution of the Group’s Technology
& Operations strategy.
• Discussed the role of digital assets in the evolution of financial services and the
Group’s role in shaping the future of the banking industry.
• Approved sales of WRB businesses
in Uganda, Zambia and Sri Lanka.
See page 145 for further
information.
• Oversaw a new market entry into
Luxembourg. See page 144 for
further information.
Annual Report 2025 | Standard Chartered 141
Directors’ report
Activities Outcomes
Risk management and regulatory
• Received risk reports from the GCRO and Board Risk Committee.
• Reviewed the Financial Conduct Authority (FCA) Firm Evaluation Letter,
engaged directly with the FCA on its contents and approved the response
andactions.
• Received an update on the progress made against the actions agreed with
thePrudential Regulation Authority (PRA) in respect of its findings identified
inthe 2024 Periodic Summary Meeting (PSM) Letter, noting good progress
hadbeen made.
• Reviewed stress testing and assessment of the impacts of tariffs, trade tensions
and market turbulence on the client segments, industry and sectors, and
markets and countries.
• Engaged with the PRA on the findings of its 2025 PSM Letter.
• Received an update on change management and the Group’s key
transformation programmes.
• Approved the Group’s Risk Appetite
for 2026, which included a
consideration of principal risks.
• Approved material changes
totheERMF.
• Approved the Contingent Liquidity
Risk Framework, Board Risk
Appetite and contingent liquidity
risk management plan for
theGroup.
People, culture and values
• Reviewed the Board Diversity Policy.
• Reviewed an annual update on the operation and effectiveness of the Group’s
Speaking Up programme for 2024-2025.
• Received updates on the recruitment and appointment of a new Head of
Technology and Operations (T&O) as well as wider changes and appointments
in the T&O team.
• Reviewed 2025 Group and Management Team scorecards.
• Discussed progress made against the Group’s people strategy.
• Received the annual report on employee conduct and concerns management.
• Reviewed the Group’s culture strategy.
• Discussed the Group’s global
position on diversity and inclusion
(D&I), and sustainability, in the
context of the political stance in
theUS, confirming that our position
remained unchanged with
management firmly committed
tothe Group’s global D&I strategy
and sustainability agenda.
• Approved changes to the Board
Diversity Policy. See page 158 for
further information.
• Approved the Group’s UK and
Australia Modern slavery
statements.
Financials and performance
• Monitored the Group’s financial performance.
• Considered the Group’s approach to capital management and returns.
• Received financial updates from the CFO including key financial highlights
andperformance against budget.
• Discussed the outlook for 2025.
• Received updates on operational events.
• Reviewed and approved the five-year corporate plans and 2026 budget.
• Approved the final dividend for
2024, the interim dividend for
2025and two share buyback
programmes.
• Approved the 2024 Annual Report,
2025 Half-Year Report and
quarterly results.
Board leadership and Company purpose
Key Board meetings
Scheduled meeting
(London)
February
Ad hoc meeting
Scheduled meeting
inmarket (Malaysia)
Global Subsidiary
Governance Conference
(Malaysia)
April
Scheduled meeting
(London)
2025 AGM
May
Scheduled two-day
strategy offsite Board
meeting (London)
June
Board activities
Standard Chartered | Annual Report 2025142
Activities Outcomes
Governance
• Attended a global subsidiary governance conference in Malaysia, held over
twodays in April 2025. See page 145 for further information.
• Reviewed and approved directors’ potential conflicts of interest.
• Received quarterly updates on the Standard Chartered Bank (Hong Kong)
Limited (SCBHK) board and committee meetings.
• Reviewed the Board performance review 2024 and approved the 2025 action plan.
• Received workforce engagement updates.
• Received updates on new regulations impacting corporate governance.
• Received updates on the Group’s AI framework and discussed the establishment
of a governance structure to drive adoption across the business.
• Received an update on the key amendments to the HK Corporate Governance
Code taking effect from 1 January 2026.
• Reviewed material escalations and events from the Group’s key subsidiaries.
• Discussed executive director and Management Team succession planning.
• Received and discussed the 2025 externally facilitated Board performance
review presentation.
• Received an external report on investor perception of the Group.
• Received updates from, and engaged with, three of the Group’s largest
shareholders, providing an overview of their investment views.
• Approved non-executive directors’
independence and reappointment,
and recommended the re-election
of directors at the 2025 AGM.
• Approved several Board and
committee appointments.
Seepages 139 and 157 for
furtherinformation.
• Approved the appointment
ofScottCorrigan as the Group
Company Secretary.
• Approved the expansion of Sir
IainLobban’s role as independent
adviser and critical friend to
theBoard, its committees
andmanagement.
External environment
• Received updates on the macroeconomic and geopolitical environment
including:
– Tariffs and changing global trade flows and the risks and opportunities
forthe Bank
– US-China relations
– Conflicts – Middle East, Russia/Ukraine, Israel/Gaza
– Technology and innovation and how quickly these are changing – AI, digital
currencies and digital assets
– Singapore, Malaysia and the wider ASEAN region
• Given the number of shifts in the macroenvironment and geopolitics/
geoeconomics, the Board tested the resilience of the strategy.
• Identified the associated risks and
opportunities for the Group arising
from the volatile macroeconomic
and geopolitical environment.
• Agreed that the strategy of
focusing on differentiated cross-
border capabilities with leading
wealth management expertise
remained the right one in the
rapidly evolving external
environment.
Scheduled meeting
(London)
July
Scheduled meeting
(London)
September
Scheduled meeting in
market (Singapore)
Stewardship event (London)
November
Scheduled meeting
(London)
December
Annual Report 2025 | Standard Chartered 143
Directors’ report
Strategy offsite meeting
A two-day offsite strategy Board meeting was held in London in June 2025,
which provided an opportunity for the Board to consider detailed strategic
updates, challenge management, and shape and provide feedback on the
Group’s longer-term strategic ambition. The Board discussed key strategic
matters, the Group’s long-term strategic ambition, and progress against
theGroup’s strategic priorities, taking into consideration the evolving
external environment.
The Board discussed geoeconomic and geopolitical drivers; our distinctive
cross-border offering; our affluent business; establishing a stronger
originate-to-distribute engine; building alternative business models
indigitalassets; skills and talent; and our shareholders’ expectations.
The Board concluded that the execution of the strategy remained on
trackwith performance improving and positive client feedback received.
Thestrategy is well-positioned to deliver against a rapidly evolving external
environment and regulatory landscape. The Board acknowledged
enhancements to the alignment between the Group’s brand and strategy
and the importance of building specialist skills, capabilities and knowledge
to deliver the strategy.
Board leadership and Company purpose
Principal Board activities
Principal decisions
New digital assets business in Luxembourg
Stakeholders considered
Clients
Regulators and governments
The Board approved the Group’s entry into Luxembourg
toestablish a new crypto and digital assets custody business.
Inorder to ensure that we may provide a comprehensive
digital assets custody solution for our global clients, the
Groupwas required to establish an EU presence and apply
for alicence under the EU’s newly established digital assets
regulatory framework, the Markets in Crypto Asset Regulation.
Luxembourg was selected to serve as the Group’s entry point
to the EU, with the market having already demonstrated a
proactive approach to the regulation of digital asset services,
and possessing a strong local digital asset ecosystem with a
deep talent pool. The new entity has now obtained its licence
to operate digital asset custody services and represents
akeypillar in the Group’s global digital assets strategy,
supporting clients with a product changing the landscape
oftraditional finance.
Standard Chartered | Annual Report 2025144
Exit of three WRB businesses
Stakeholders considered
Clients
Employees
Society
Regulators and governments
The Board approved the divestment of three WRB
businessesin Uganda, Zambia and Sri Lanka, with the 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 Board took into account
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 Board 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.
Capital distributions
Stakeholders considered
Investors
Regulators and governments
During 2025, the Board approved two dividend payments
and announced buybacks of ordinary shares totalling
$2.8 billion. The Board noted the importance of approving
distributions and other capital management activities within
an appropriately prudent framework. These decisions were
informed by assurance sought from management regarding
the protection of the Group’s capital position and its ability
toexecute planned investment activities for future growth.
With the successful completion of our 2025 buybacks, in
addition to total dividends for 2025 of 61 cents per ordinary
share and a new $1.5 billion buyback announced on
24 February 2026, we have announced greater than $9 billion,
shareholder distributions since February 2024 exceeding
our$8 billion three-year cumulative shareholder
distributionstarget.
Global Subsidiary Governance Conference
The Global Subsidiary Governance Conference, which takes place every two
years, convened in Malaysia in April 2025, coinciding with 150 years of the
Bank’s presence in Malaysia. The conference marked another milestone in
the Group’s subsidiary governance programme. This conference is designed
to strengthen alignment and collaboration between the Group Board and
the boards of the banking subsidiaries across the network.
The conference addressed several priorities, including the Group’s strategic
direction and financial performance, with particular emphasis on leveraging
the Group’s distinctive network to facilitate connectivity across global trade
corridors. Discussions centred on enhanced understanding and management
of Information and Cyber Security Risk in an evolving digital landscape,
alongside a forward-looking perspective on workforce transformations
toalign to the Group’s strategy. The conference also focused on geopolitics
and the macro implications across our regions.
The conference reinforced the Group’s commitment to robust governance
infrastructure and collaborative leadership across its international operations
and demonstrated the cohesive approach to delivering the Group’s strategy
by leveraging its unique physical footprint and diversified markets.
Annual Report 2025 | Standard Chartered 145
Directors’ report
Regular and transparent engagement with our shareholders
helps the Board understand their needs and tailor our public
information accordingly. In addition to engagement via our
Investor Relations team, we communicate through quarterly,
half-year and full-year results, conferences, roadshows,
investor days and media releases. The Remuneration
Committee Chair conducts shareholder engagement
onanannual basis to provide an update on remuneration
forthe executive directors, and at least every three years
toconsult on the development of the executive directors’
remuneration policy.
Board engagement with ourshareholders
Information released by the Group to the London Stock
Exchange and Hong Kong Stock Exchange is also published
on our website at sc.com/stock-exchange-announcements.
INEDs, including the SID and committee chairs, are available
to meet with shareholders and investors on request. They can
share their views on issues affecting the Group through
various channels during the year, including investor events.
Retail shareholders can access dedicated services through
our registrar, Computershare.
Key feedback, recommendations and requests from
shareholder engagements are considered by the Board,
whoare updated on current topics of interest.
During the year, the directors and Company representatives engaged directly with its largest shareholders through a variety
ofinitiatives as set out below:
Engagement Outcome
2025 Directors’
remuneration
policy
The Remuneration Committee Chair led an
investor consultation on proposals for the new
Directors’ remuneration policy which was put to
shareholders at the 2025 AGM.
During the development of the policy, we
consulted with 21 shareholders, accounting for
approximately 60 per cent of our share register,
certain proxy advisers, and other important
stakeholders, including the PRA and FCA. Over
40 meetings were held with the Remuneration
Committee Chair supported by colleagues from
Group Human Resources, Company Secretariat
and Investor Relations.
We began our consultation earlier than usual in
2024 to allow for multiple rounds of engagement
to help shape the policy.
We received valuable input and feedback that
helped to shape the final remuneration policy.
Forexample, we addressed specific feedback
relating to our incentive scorecards by simplifying
the metrics and placing a greater emphasis
onfinancial metrics. The final proposals were
reviewed again with key shareholders and proxy
advisers in late 2024 and early 2025, prior to
being finalised and published in the 2024
Directors’ remuneration report.
The Directors’ remuneration policy was approved
by shareholders at our 2025 AGM, receiving
81.86% votes in favour.
2024 annual
report on
Directors’
remuneration
The consultation also covered proposals for the
2024 year-end executive director remuneration
outcomes, which were then finalised and reported
in the 2024 Directors’ remuneration report.
The 2024 annual report on remuneration was
approved by shareholders at our 2025 AGM,
receiving 98.87% votes in favour.
Stewardship
event
The Group Chair, alongside the Board
committeechairs, hosted a stewardship event for
institutional investors. Investors had the option
toattend either online or in person. The event
was held on 26 November 2025 in London and
provided attendees with an update on the
Group’s strategy, the activities of the Board
committees and a keynote presentation on
artificial intelligence and cyber governance.
Provided an opportunity for institutional investors
to engage with the Board and ask questions.
These covered a diverse range of topics,
includingdigital assets, cyber security, artificial
intelligence, capital return framework and return
on equity, sustainability challenges and
leadership succession.
AGM The AGM, held on 8 May in 2025, was the Board’s
key opportunity for engagement with retail
shareholders, enabling discussion of the Group’s
recent performance and strategic priorities. It was
hosted by the Group Chairman, José Viñals, with
all Board members in attendance.
Provided an opportunity for retail shareholders
toengage with the Board and ask questions.
These covered a diverse range of topics, including
the Group’s strategy, sustainability, biodiversity,
and the energy transition.
Shareholders representing over 82% of the
issuedshare capital voted and all resolutions
were passed.
Board leadership and Company purpose
Standard Chartered | Annual Report 2025146
Engagement Outcome
Investor
meetings
The Group Chair met with the Group’s top
institutional shareholders in one-on-one meetings
on an ad hoc basis.
In parallel, the Group Chief Executive Officer and
Group Chief Financial Officer conducted
extensive regular engagements with potential
and existing shareholders, including the Group’s
major institutional investors, through investor
meetings and conferences.
In addition, in 2025, three shareholders were
invited to present their views directly to the Board,
providing an opportunity for open and
constructive dialogue between the Board and
shareholders on matters of interest and concern.
The Board also commissioned an external
independent investor perception study to offer
insights into how Standard Chartered is
perceived, the areas of focus for investors and
how Standard Chartered can improve its investor
communications. The findings were presented to
the Board in September.
Key topics of interest raised during these
meetings included the Group’s network strategy
and affluent franchise, the underlying drivers of
performance, capital management, operational
efficiency and cost management, as well as
governance matters.
The Board has noted the views expressed and will
continue to take such feedback into account,
where appropriate, when formulating and
reviewing the Group’s strategic priorities.
The Board values constructive engagement with
shareholders and regards effective
communication as an important element of the
Group’s corporate governance framework.
Read more on engagement with shareholders and wider stakeholders on pages 37 to 41
Board engagement with the Group’s subsidiaries
The Board and its committees maintain strong connections and information sharing across the Group by engaging
withitssubsidiaries through various forums.
Subsidiary
committee
meetings
• Annually, the chairs of the SCBHK and Standard Chartered Bank (Singapore) Limited (SCBSL) audit
committees and risk committees are invited to observe meetings of the PLC Audit and Risk Committees.
The Chairs of the PLC Audit and Board Risk Committees are also invited to observe relevant committee
meetings of SCBHK and SCBSL.
Committee
chair video-
conferences
• The Audit Committee Chair hosted an annual videoconference with subsidiary audit committee
members to discuss key topics including Model Risk, Climate Risk, key priorities from Group Finance and
GIAI, an audit update from EY, and an update from CFCR.
• The Board Risk Committee Chair hosted an annual videoconference with subsidiary risk committee
members to discuss key topics including stress testing, sovereign and geopolitical risks, resolvability and
operational resilience.
• The Remuneration Committee Chair held a videoconference attended by members of country
remuneration committees, which covered Group Performance, Reward and Benefits focus areas, 2026
outlook and anticipated UK regulatory changes.
• All videoconferences had dedicated Q&A sessions, which were well utilised and actively encouraged
two-way participation.
Engagement
with local
teams
• Members of the Audit Committee met with local GIAI colleagues in Malaysia and Singapore to increase
awareness of the audit activities within these markets. These discussions provided a useful opportunity
for Audit Committee members to understand any local challenges faced on the ground and how the
control environment is working.
• Members of the Board Risk Committee met with local risk teams in Malaysia and Singapore to gain
insights into their key priorities and areas of focus.
• Members of the Remuneration Committee met with local HR teams in Malaysia and Singapore to gain
their insights into local performance, cultural and engagement matters.
Annual Report 2025 | Standard Chartered 147
Directors’ report
Board leadership and Company purpose
It is the Board’s responsibility to ensure that the Group’s
culture helps drive our purpose and strategic direction.
TheBoard is supported by its Culture and Sustainability
Committee (CSC), which reviews the way the Group develops,
manages and embeds its culture and the associated
expectations of employees, including the Group’s approach
to its purpose, valued behaviours, diversity and inclusion,
employee engagement, policies and practices.
Our distinctive culture has been developed in pursuit of our
purpose – to drive commerce and prosperity through our
unique diversity. Successful delivery of our strategy relies on
our ability to preserve our culture. Our valued behaviours and
brand promise shape our culture and are key to delivering
onour strategy. Read more on our purpose and culture
onpage 3 and our strategy on page 9.
The Board and its committees undertake activities to monitor
and assess our culture and ensure that our desired culture
isembedded throughout the Group.
How we embed our culture
• Leadership communication and tone from the top,
including town halls led by the Group Chair, Group Chief
Executive, GCFO andmembers of the Management Team,
which provideemployees with important information
andbusinessupdates.
• Culture is deeply integrated into our decision-making
processes, strategy and performance ensuring that
ourvalued behaviours and brand promise consistently
guide our decisions.
• Integration of valued behaviours into policies,
decision-making and risk frameworks.
• Remuneration framework, policies and practices, which
are consistent with the Group’s valued behaviours, support
long-term success of the Group and are aligned with our
culture. Read more on pages 180 to 206.
• Linkages with our subsidiaries, including the Global
Subsidiary Governance Conference to ensure alignment
ofthe culture and strategic direction across the Group.
Read more on pages 145 and 147.
• People and performance practices and employee training,
which promote alignment of our valued behaviours
andculture.
How we monitor and assess culture
• Received updates from management on people
andculture.
• Received and assessed insights on how colleagues feel
about our culture via our employee listening channels
including the annual My Voice survey which was
conducted through May and June and had an employee
response rate of 85 per cent. Read more about the
MyVoice outcomes on page 33.
• Reviewed the Culture Dashboard and discussed reports
oncultural indicators, including engagement scores,
conduct metrics, and employee attrition.
• INEDs engaged directly with employees through the
BWEprogramme to understand insights on their lived
experience of working for the Bank and how they bring to
life the diversity and inclusion strategy in their daily work.
• Attended site visits, forums and listening sessions as well
as market visits in Malaysia and Singapore to gain insights
into our culture by meeting and observing colleagues from
across the Group.
• Reviewed and discussed the annual conduct and concerns
management report including an update on the Group’s
confidential whistleblowing programme, Speaking Up.
Read more on page 118 to 119.
Key outcomes
We have strengthened our focus on reinforcing good conduct
standards from the top down. In 2025, all managing directors
attended sessions outlining their businesses expectations and
the ‘It Matters’ training, which includes real-life case studies,
became mandatory across the group. In addition, training
and awareness measures continue to be developed using
avariety of tools including country specific communications,
visible business-led sessions and upliftment of the internal
Global Conduct Week held in June 2025 which encouraged
employees to participate in various educational activities
andembed good conduct. There has also been increased
advertising for the variety of channels available to colleagues
to raise concerns.
To enhance alignment of the Company’s culture with its
purpose, valued behaviours and strategy, and ensure it
isembedded across the organisation, we have overseen
simplification and sharpening of the Group’s strategy
including endorsement of new target cultural markers:
client-centricity, innovation, and collaboration. These cultural
markers align with our valued behaviours and are
characteristics that will be nurtured to deliver our strategy
and aim to make work easier, more efficient, and more
effective. Initial feedback on the target cultural markers
highlighted that our employees remain positive about the
Bank’s strategic direction and the sharpening of our strategy
has been instrumental in opening discussions, unblocking
decisions, focusing efforts, and getting investments needed
to drive us forward.
Following receipt of feedback from participants of the BWE,
the Board has endorsed an adjusted BWE framework for
2026 to enhance engagement.
Culture
Standard Chartered | Annual Report 2025148
Roles and responsibilities
The responsibilities of the Group Chair, Group Chief Executive
and SID are set out in writing and can be found on our website.
sc.com/responsibilities
The roles of the Group Chair and Group Chief Executive are
distinct from one another and held by separate individuals.
The Group Chair, Maria Ramos, is responsible for leading the
Board, ensuring its effectiveness and, together with the Group
Chief Executive, developing and embedding the Group’s
culture. The Group Chair promotes high standards of integrity
and governance across the Group and ensures effective
communication and understanding between the Board,
management, shareholders and other stakeholders.
The SID, Phil Rivett, provides a sounding board for the Group
Chair and acts as an intermediary for the other directors.
TheSID undertakes the performance review of the Group
Chair and holds meetings with each director separately
toreceive their feedback. Consolidated feedback is shared
withthe Group Chair. Phil can be contacted via the Group
Company Secretary at 1 Basinghall Avenue, London EC2V
5DD, and is available to shareholders if they have concerns
that the Group Chair, Group Chief Executive or other
executive directors are not able to resolve or if the normal
channels would be inappropriate.
Director independence
The Governance and Nomination Committee reviews
theindependence of each of the non-executive directors,
considering any circumstances that could impair their
independence. Recommendations are then made to
theBoard for further consideration. In determining the
independence of a non-executive director, the Board considers
each individual against, but not limited to, the criteria set out
in the UK Code and the Hong Kong Listing Rules. The Board
considers the non-executive directors to be independent
ofStandard Chartered, and has concluded that there are
norelationships or circumstances likely to impair any
individual non-executive director’s judgement.
External directorships and other
businessinterests
Board members hold external directorships and other outside
business interests, the details of which are set out in their
biographies on pages 131 to 134. We recognise the significant
benefits that broader boardroom and other commercial,
advisory and charitable activity provide.
We closely monitor the nature and quantity of external
directorships our directors hold, to satisfy ourselves that any
additional appointments will not adversely impact their time
commitment to their role at Standard Chartered. We also
ensure that all Board members remain compliant with the
PRA directorship requirements, as well as proxy advisor and
shareholder guidance on overboarding.
Our established internal processes ensure that directors do
not undertake any new external appointments without first
receiving Board approval. The Board has delegated authority
to make such approvals to the Group Chair, with the
exception of her own appointments. Potential conflicts
ofinterest are considered before any approval is given and,
ifany are identified, appropriate undertakings are sought
and safeguards put in place.
Before committing to an additional appointment, directors
confirm the existence of any potential or actual conflicts, that
the role will not breach their limit as set out by the PRA, and
provide the necessary assurance that the appointment will
not adversely impact their ability to continue to fulfil their role
as a director of Standard Chartered. All directors continue
tohold no more than four non-executive directorships
(oroneexecutive directorship alongside two non-executive
directorships) permitted under the General Organisational
Requirements Part of the PRA Rulebook.
On behalf of the Board, the Governance and Nomination
Committee reviews potential and existing conflicts of interest
annually to consider if they continue to be conflicts of interest,
and also to revisit the terms upon which they were authorised.
The Board is satisfied that our processes in this respect
continue to operate effectively.
Fitness and propriety assessment and
timecommitment
The Group Chair has responsibility for assessing annually the
fitness and propriety of the Company’s INEDs and the Group
Chief Executive Officer under the UK Senior Managers and
Certification Regime. These assessments were carried out
inrespect of each INED and the Group Chief Executive.
TheGroup Chief Executive carried out a similar assessment
for the Group Chief Financial Officer who was an Executive
Director as at 31 December 2025.
These one-to-one sessions considered:
• Performance against core competencies, including their
challenge and conduct in meetings and the Board’s
expectation of directors.
• Time commitment to the Group, including (where
relevant) the potential impact of any outside interests.
• Ongoing development and training needs.
• The Board’s composition and refreshment.
• Level of engagement across the Group.
No issues were identified during these assessments and
weremain satisfied that our INEDs commit sufficient time
indischarging their responsibilities as directors of Standard
Chartered. In general, we estimate that each INED spent
more than their expected time commitments on Board-
related duties.
Access to independent advice
All directors have access to the advice of the Group Company
Secretary, who provides support to the Board and is
responsible for advising the Board on governance matters.
Directors also have access to independent professional
advice at the Group’s expense, on any matter relating to
theirresponsibilities.
Sir Iain Lobban, as independent adviser to the Board and its
committees on cyber security and cyber threat management,
attends relevant items at Board and committee meetings
toprovide an independent view on the Group’s progress
inthese areas.
Division of responsibilities
Annual Report 2025 | Standard Chartered 149
Directors’ report
Composition and succession
As at 31 December 2025, the Board consisted of 11 members,
comprising the Group Chair, two executive directors, the SID,
and seven independent non-executive directors.
On 10 February 2026, we announced that Diego De Giorgi
stepped down from his role as Executive Director and Group
Chief Financial Officer, with effect from 10 February 2026.
The biographies of each director, including details of their
skills and experience, are set out on pages 131 to 134.
We remain committed to ensuring that the Board has the
right balance of skills, knowledge, experience and diversity to
deliver our strategy and achieve our brand promise – here for
good. The Governance and Nomination Committee reviews
the skills, experience and time commitment of our directors
and supports the Board in ensuring adequate succession
plans are in place for the Board, its committees and the
Management Team.
The Governance and Nomination Committee recommends
appointments of new directors to the Board as well as
appointments to the Board’s committees. An overview of
theBoard and committee changes made during the year
canbe found on page 139 and the appointment process for
new directors is detailed on page 158.
Read more on Board composition and succession
intheGovernance and Nomination Committee report
onpages 155 to 160
Annual performance review
Performance review cycle
In line with the UK Code, a formal and rigorous review of the
performance of the Board, its committees, the Group Chair
and the individual directors is conducted annually. We have
adopted an assessment cycle which ensures an external
review of the Board takes place every three years.
Composition, succession and evaluation
Progress against the 2025 Action Plan
As disclosed in the Company’s 2024 Annual Report, the
2024evaluation of the Board, Board committees, individual
directors and the Group Chair was internally facilitated
bytheGroup Company Secretary. Following analysis of
thekey observations from that evaluation, the Board and
itscommittees created a 2025 Action Plan to enhance
performance, the progress of which was monitored during
the year. We are pleased to confirm that all actions have
been completed, and following their implementation we
have a reduction in duplication across the Board and its
committees and improvements to the effectiveness and
efficiency of the Board, through a more strategic focus
toagendas and the meetings.
2025 performance review of the Chair and
individualdirectors
Maria Ramos, as the Group Chair, led the performance review
of individual directors for 2025 alongside the assessment of
each INED’s fitness and proprietary and time commitment,
the details of which can be found on page 149.
Phil Rivett, as SID, reviewed the performance of the Group
Chair, Maria Ramos. Phil held individual meetings with
eachdirector to receive their feedback, which was then
anonymously consolidated and shared with Maria. It was
determined that each director, including the Group Chair,
continues to perform effectively.
2025 external performance review of the Board
In accordance with our dedication to upholding the highest
standards of corporate governance, and as recommended by
the UK Code, we conducted an external Board performance
review in 2025. The review was facilitated by an independent
third party, Clare Chalmers Ltd, who has no other connection
with the Group or its directors and has not previously been
engaged to undertake our performance review. Clare Chalmers
Ltd adheres to the principles of the International Register
ofBoard Reviewers.
The review involved an independent assessment of the
overall performance of the Board and its committees.
2024
Internal review
2025
External
review
2023
Internal
review
Standard Chartered | Annual Report 2025150
The external Board performance review process
Definition of scope andidentification ofpotential reviewers
Following extensive consultations with key stakeholders, including the Group Chair and the SID, the objectives,
focus areas and anticipated outcomes of the Board performance review were agreed. After these consultations,
we selected four potential reviewers from a pool of distinguished consultancy firms which demonstrated the
required expertise and capability to fulfil our rigorous objectives.
1
Appointment ofareviewer
Upon receiving the proposals, a thorough review was conducted to assess each vendor’s experience,
methodology, approach and alignment with our evaluation criteria. Shortlisted vendors were invited to present
their proposals and methodologies to the selection committee. After careful consideration, Clare Chalmers Ltd
was selected as the reviewer based on their demonstrated expertise, comprehensive methodology, and ability
toprovide a tailored review that met our specific requirements.
An initial meeting was held with the reviewer to align on the process, timelines, and key deliverables, and to meet
key stakeholders including the Group Chair and the Group Company Secretary. The Group Chair served as the
escalation point for the review and the Group Company Secretary provided the reviewer with access to relevant
documents and support as requested.
2
Conducting the performance review
• Documents review: Relevant data, including Board and committee papers and terms of reference, directors’
biographies, agenda planners, Board training plan, skills matrix, previous internal and external performance
review reports and the accompanying action trackers were collated and assessed by the reviewer.
• Meeting observations: In September, the reviewer attended the Board meeting and key committee
meetingsto observe dynamics, decision-making processes, and overall performance in real-time.
• Interviews: A framework interview agenda was tailored as agreed with the Group Chair and sent to all
participants ahead of their meeting with the reviewer. Confidential interviews with Board members,
Management Team, seniorexecutives, advisers and other key stakeholders were conducted by the reviewer
togather qualitative insights and candid feedback on various aspects of performance, including composition,
leadership, strategic direction, performance oversight, stakeholder engagement, effectiveness, dynamics,
andareasfor improvement.
3
Analysis, presentations and discussion
After the data was analysed, the reviewer prepared a detailed report based on the reviewer’s analysis of the views
expressed by participants and their own findings from the document review and meeting observations. The report
included suggestions and commentary based on this analysis, suggestions from participants, and the reviewer’s
ideas of pragmatic solutions or applicable good practice. The report was initially discussed with the Group Chair
and the draft report was presented to the Board during a dedicated session in December 2025, which the reviewer
attended. During this meeting, the Board had the opportunity to ask questions, seek clarifications, and discuss
theimplications of the findings. The final report was presented to the Board in February 2026.
4
Outcomes and 2026 Board Action Plan
Following the presentation, the Board developed an action plan to address the recommendations outlined inthe
report. This plan includes specific initiatives, timelines, and responsibilities to ensure the effective implementation
of the recommended actions. A summary of the key themes and action plan objectives is set out on page 152.
A monitoring framework has been established to ensure accountability and track progress of the 2026 Action
Plan. Regular updates on the implementation of the 2026 Action Plan will be provided to the Board and its
committees during2026. Lessons learned from the review have been incorporated intoour governance practices,
and a check-in meeting around the half-year has been scheduled toassess the impact of the implemented changes
and identify further opportunities for enhancement. The performance review process has been instrumental
inreinforcing our commitment to exemplary corporate governance. Byengaging the reviewer, we ensured
anobjective assessment of our performance and identified actionable insights to drive continuous improvement.
5
Annual Report 2025 | Standard Chartered 151
Directors’ report
Key themes arising
fromthe2025 review 2026 Action Plan objectives
Board debate and
performance oversight
• Continue to evolve debate and challenge at Board meetings by encouraging more direct
conversations and more targeted and succinct questioning.
• Focus on enhancing performance oversight by streamlining KPIs, extracting clearer
insights from Board papers, and increasing scrutiny and accountability.
Board and committee
meeting papers
• Continue to monitor the length, focus and timeliness of Board and committee papers with
a view to simplify meeting packs, making them more user-friendly with clearer
prioritisation, concise commentary, greater use of graphics, and introducing short memos
instead of full reports where appropriate.
• Ensure INEDs receive papers in a timely manner so that they can sufficiently prepare
formeetings.
Board and committee
agendas
• Continue streamlining agendas to ensure sufficient time is afforded to address the most
significant topics.
• Focus on the shape of the agendas and meeting flow to increase strategic focus and
improve time allocation.
• Ensure strategic priorities receive appropriate time and structured comparison with peers,
maintaining a strong line of sight on market positioning and long-term strategic direction.
INED training • Ensure the INED training programme integrates business deep-dives, technical briefings
and refresher sessions ensuring all INEDs have the knowledge and context needed
toengage effectively with the increasingly complex and evolving materials presented
atBoard and committee meetings.
Client deep dives • Strengthen the Board’s understanding of current and future client needs by scheduling
deep-dive sessions on major client segments and key global clients, supported by
structured insights from management to ensure the Board has a clear, forward-looking
view of client expectations and strategic opportunities.
Board and committee
responsibilities
• Continue to monitor and eliminate any areas of duplication between the Audit
Committee, Board Risk Committee and the Board.
Culture and Sustainability
Committee (CSC)
• Review the CSC’s remit including exploring alternative opportunities and options.
Audit Committee (AC) • Consider further opportunities to obtain early insights from Group Internal Audit
andInvestigations on key matters.
• Continue to ensure that the AC’s remit remains focused, cognisant of the composition
ofthe AC and its skills.
Board Risk Committee
(BRC)
• Continue to place focus on improving Non-Financial Risk to allow the Board to consider
growth opportunities.
• Further explore how the work and focus of the BRC is communicated to the Board, with
aview to eliminating any duplication.
Governance and
Nomination Committee
(GNC)
• Increase the GNC’s focus on long-term succession planning, ensuring that transitional
periods are factored in for key committee chair roles.
• Allocate more time to the long-term succession planning for the GMT roles.
• Consider the key skills and experience required on the Board over the next few years,
ensuring close alignment to the Group’s strategic ambitions.
• Ensure greater consultation with the wider Board (non-GNC members) through the search
and appointment process of new Board members to enhance the process.
Remuneration Committee • Leverage the insights and expertise of Deloitte, the Remuneration Committee’s external
adviser, to bring in wider perspective to Remuneration Committee discussions.
• Consider the future format of the annual Remuneration Committee strategy session,
including deep-dive topics of interest.
Composition, succession and evaluation
Standard Chartered | Annual Report 2025152
Board induction, training and development
Induction
Upon joining the Board, our directors undertake a
comprehensive tailored induction programme based on their
previous experience and knowledge, which is led by the
Group Corporate Secretariat function.
In addition to site visits across some of the Group’s key
markets and meetings with the Management Team and
Board members, the induction programme includes an
overview of the following areas: the regulatory environment;
corporate governance including directors’ duties; Board 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.
The Governance and Nomination Committee reviews the
progress of the induction programmes and is satisfied that
the inductions of Diane Jurgens and Lincoln Leong, who were
appointed during 2024, were completed during 2025. Further
information regarding their tailored inductions can be found
on page 117 of the 2024 Annual Report.
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 Group and her strong banking experience, having
previously held roles on the 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 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 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 Group, a wide range of stakeholders, investors,
regulators, and employees, with the aim of raising her profile
with key stakeholders across the Group as well as increasing
her understanding of the 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, including a period of shadowing him
through discussions and meetings.
Development plan for new Committee Chairs
During 2025, Phil Rivett was appointed as the Board Risk
Committee Chair and Jackie Hunt was appointed as the
Audit Committee Chair. Both Phil and Jackie received
individualised development plans that took into consideration
their existing knowledge of the Group and aimed to deepen
their understanding of the responsibilities as Chairs of the
respective committees. Prior to appointment they received
handovers from the previous committee chairs and reviewed
the forward-looking agendas to identify specific areas where
further insight would enhance their understanding.
The Group Corporate Secretariat provided oversight of the
completion of their development plans, provided advice and
support and continued to assist Phil and Jackie in discharging
their responsibilities.
Ongoing training
Ongoing training and development plans ensure that our
Board 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,
insights from guest speakers and papers on a wide range
oftopics to ensure that they are well informed and that the
Board remains highly effective. The table overleaf provides
an overview of the directors’ training in 2025.
Annual Report 2025 | Standard Chartered 153
Directors’ report
2025 director training overview
Expected credit
loss training
Information
and Cyber
Security (ICS)
Audit and
Corporate
Governance
(ACG)
socialisation
ACG
socialisation
Software Security
Vulnerability Management/
Managing Quantum
Computing ICS Risks
(INED-only session)
Climate
Risk
Annual
directors’ duties
training
Maria Ramos
Bill Winters, CBE n/a
Diego De Giorgi
1
n/a
Phil Rivett
Shirish Apte
Jackie Hunt
Diane Jurgens
Robin Lawther, CBE
Lincoln Leong
David Tang
Dr Linda Yueh, CBE
Dr José Viñals
2
n/a n/a n/a n/a
1 Diego De Giorgi stepped down from the Board on 10 February 2026.
2 José Viñals stepped down from the Board on 8 May 2025.
Director attended the session
Director was unable to attend the session but received any accompanying materials/recordings of the training and had
anopportunity to raise questions and observations with the Group Chair and Group Company Secretary as well as the
presenter of the training
Committee training
Members of the Board committees also received training relevant to their respective committees. In 2025, the Board Risk
Committee received training on topics including the Internal Capital Adequacy Assessment Process (ICAAP) and the Internal
Liquidity Adequacy Assessment Process (ILAAP), and model risk management. The Culture and Sustainability Committee
received training on sustainability innovation hubs and energy transition. The Remuneration Committee attended a strategy
education session.
Composition, succession and evaluation
Standard Chartered | Annual Report 2025154
Governance and Nomination
Committee report
Audit Committee in September. Both are experienced, highly
respected members of the Board and well-versed in managing
financial services risks. The Committee also recommended
the appointments of Phil and Jackie as members of the
Remuneration Committee and Governance and Nomination
Committee respectively. More information on the Board
andcommittee changes can be found on page 157.
Since year end, and as announced on 10 February 2026, Pete
Burrill was appointed as Interim Group Chief Financial Officer
(GCFO), succeeding Diego De Giorgi who stepped down
asExecutive Director and GCFO. The process for appointing
apermanent GCFO and Executive Director is underway.
The Committee plays an important role in assessing the
performance of the Board, its committees and individual
directors to ensure we continue to function effectively. In 2025,
in accordance with the 2024 UK Corporate Governance Code
(UK Code), we appointed Clare Chalmers Ltd to conduct
anindependent external performance review. Thiswas
abeneficial exercise, concluding that the Board continues
tooperate effectively while highlighting feedback and
recommendations to optimise its performance. An action
plan to address these recommendations has been developed
and will be progressed during 2026. Details of the review
process and outcomes can be found on pages 150 to 152.
As part of the Committee’s broader governance remit, it
received updates on corporate governance developments
impacting our banking subsidiaries; recent regulatory
inspections and audits impacting corporate governance; key
themes from subsidiary board effectiveness reviews; linkages
between banking subsidiaries and the Group; and oversight
of processes around board succession at a country level.
More detail on the Committee’s key activities and areas
offocus during 2025 is set out on pages 156 to 160.
Maria Ramos
Governance and Nomination Committee Chair
Maria Ramos, Governance and Nomination Committee Chair
Committee composition and attendance
Committee member
Scheduled meeting
attendance
Ad hoc meeting
attendance
Maria Ramos
1
3/3 1/1
Dr José Viñals
2
1/1 1/1
Shirish Apte 3/3 1/1
Jackie Hunt
3
2/2 n/a
Phil Rivett 3/3 1/1
Dr Linda Yueh, CBE 3/3 1/1
1 Maria was appointed as Committee Chair on 8 May 2025.
2 José stepped down as Committee Chair on 8 May 2025.
3 Jackie was appointed as a member of the Committee on 8 May 2025.
As Chair of the Governance and Nomination Committee
Iampleased to report on the Committee’s work during 2025,
having succeeded José Viñals as Committee Chair and Group
Chair in May. I would like to thank José, who generously,
diligently and with great care and commitment, chaired
theBoard for almost nine years. We are grateful for his
leadership, impact on the culture, and steady guidance
inshaping and ensuring good governance.
Our focus is to ensure that the Board and its committees
provide effective leadership, challenge and oversight of the
Group’s strategy, risk management and culture. Succession
planning is a central element of this work. We maintain a
robust forward-looking pipeline of independent non-executive
directors (INEDs), taking account of the optimum balance of
skills, experience, expertise, emerging strategic and capability
requirements, and diverse perspectives. Executive and Group
Management Team succession is a key area of work for
theCommittee, covering reviewing and challenging plans,
informed by regular assessment of internal talent and
external market insight.
The Committee regularly reviews the Board and its
committees’ composition, skills and experience to ensure that
as a Board, we can support, shape and challenge the Bank’s
current and future ambitions. Diversity of views and perspective
also remain core to the Committee when considering the
Board’s composition and succession plans. During the year,
the Committee has continued to look at those skills and
attributes which the Board and its committees will need over
the short, medium and longer term, and engaged with
external search firms to assist it.
It was an active year for the Committee in which it oversaw
anumber of significant changes to key Board and committee
positions. Following my appointment as Group Chair in May,
Phil Rivett succeeded me as Senior Independent Director.
InAugust, Phil was also appointed as Chair of the Board Risk
Committee, with Jackie Hunt succeeding Phil as Chair of the
Additional attendees
Group Chief Executive; Group Head, Human Resources;
andGroup Company Secretary also attended Committee
meetings in 2025.
Responsibilities
The Committee’s responsibilities are described in this report
and the Committee’s terms of reference which can be viewed
at sc.com/termsofreference.
Annual Report 2025 | Standard Chartered 155
Directors’ report
Governance and Nomination Committee report
Board composition, succession planning and evaluation
The Committee has responsibility for advising the Board and its committees on their composition, appointments and
succession. The Committee is responsible for reviewing the composition and considering the likely technical skills, knowledge
and experience required for the Board in the context of the development and execution of the Group’s strategy. The Committee
also keeps the Group’s long-term succession plans under review in relation to executive directors and senior management.
Theevaluation of the performance of the Board, its committees and the individual directors is overseen by the Committee.
Action and decision Outcome and impact
External performance review
• Appointed an independent third-party, Clare Chalmers Ltd, to review
theperformance of the Board and its committees in accordance
withtheUKCode.
• Reviewed the external evaluators draft report in December 2025.
Read more on the external performance review process on pages 150 to 151.
• Developed an action plan to address
the external reviewer’s
recommendations to enhance
performance.
• Progress against the action plan will be
monitored during 2026.
Read more on the outcomes
oftheexternal performance review
onpages151to 152.
Board composition and succession planning
• Reviewed the composition of the Board.
• Reviewed succession plans for the Board and its committees, considering
arange of potential future INED candidates.
• Identified appropriate individuals with the necessary skills and attributes
toprovide emergency cover for committee chair roles and senior Board
rolesas required.
• Reviewed succession plans and candidates for the Senior Independent
Director and committee chair roles, and identified appropriate successors.
• Recommended the appointments of:
– Maria Ramos as Group Chair and Governance and Nomination
Committee Chair
– Phil Rivett as Senior Independent Director and Risk Committee Chair
– Jackie Hunt as Audit Committee Chair and member of the Governance
and Nomination Committee
– Phil Rivett as a member of the Remuneration Committee.
• Engaged Russell Reynolds Associates Limited
1
to perform a search
ofcandidates with deep banking experience and experience as former
CEO/CFO/CROs.
• Reviewed and approved the appointment of Ben Hung, President
International, as Chair of Standard Chartered Hong Kong’s board to replace
Stephen Eno who had been on the Board for 11 years.
• Assessed Sir Iain Lobban’s independence in line with the UK Code and
concluded that he remains independent.
• Approved and recommenced the expansion of Sir Iain Lobban’s role as
independent adviser to the Board, its committees and management.
• Regular refreshment of the Board
andsuccession planning ensures the
Board achieves the right blend of skills,
experience, tenure and diversity
toprovide the appropriate level
ofoversight, challenge and
corporateknowledge.
• In accordance with the Committee’s
succession plans, the Board approved
all appointments recommended by
theCommittee, subject to regulatory
approval where required.
• The Board approved the expansion
ofSir Iain Lobban’s advisory role with
effect from 1 January 2026.
• The Committee will update and
enhance the Board’s skills matrix in
2026 to more accurately evaluate the
expertise and experience of each
director and support effective
succession planning.
Read more on the changes to the Board
and its committees during 2025 on page
157 and details of the appointment
process on page 158.
Executive directors and senior talent succession planning
• Discussed management’s executive talent approach.
• Reviewed and provided feedback on the Group’s succession plans for
executive directors and the Management Team in respect of both
contingency plans and long-term strategies. Internal successors were
assessed and their skills developed, and identified and assessed the skills
ofpossible external candidates.
• Approved the Group Management
Team and Group Chief Executive
succession plans.
• The development of a robust pipeline
ensures there are appropriate
short-and longer-term succession
plans inplace for the executive
directors and Management Team.
1 Russell Reynolds also provides senior resourcing to the Group. The Company is not aware of any ongoing business relationship between Russell Reynolds
andtheCompany’s directors.
Standard Chartered | Annual Report 2025156
Action and decision Outcome and impact
Time commitment assessment
• Assessed each director’s time commitment and contribution to the
Board,having regard for the Prudential Regulation Authority directorship
andHKCode requirements, as well as proxy advisor and shareholder
guidanceon overboarding.
• Considered the review of each director’s performance which requires the
directors to assess their own contribution to the Board.
• The Committee recognises that, in certain circumstances, directors may
beunable to attend meetings due to pre-existing business or personal
commitments. Where this occurs, in advance of the meeting directors
receive relevant papers and have the opportunity to feed back any
comments or observations that are discussed at the meeting. Directors
receive updates on any developments after the meeting.
• The assessment confirmed that
nodirector is overboarded.
• The Committee confirmed to the Board
that it remained satisfied that each
director commits the necessary time
toeffectively fulfil their duties and
responsibilities as a director of
Standard Chartered PLC.
• Provides assurance that each director
commits the necessary time and
effortto the Company to effectively
fulfil their responsibilities.
Details of each director’s significant
external appointments can be found
intheir biographies on pages 131 to 134.
External interests and directors’ independence
• Conducted a review of the directors’ existing and previously authorised
potential and actual situational conflicts of interest.
• Noted directors’ other directorships and business interests taken on during
the year in the context of time commitment, overboarding and the
regulatory and shareholder limits on directorships as well as other regulatory
requirements in this area.
• Reviewed the independence of each of the non-executive directors,
considering any circumstances with a reasonable prospect of impairing
theirindependence.
• Concluded that there were no
circumstances which would necessitate
any of the previous authorisations
being revoked or amended.
• Concluded that each INED continued
to be independent.
Board and committee changes during 2025
Maria Ramos was appointed as Group Chair and
Governance and Nomination Committee Chair on 8 May
2025. The search was initiated in 2023 and was led by
aselection panel comprising non-executive directors and
waschaired by Phil Rivett, a member of the Committee.
Theprevious Group Chair, José Viñals, was not involved
intheappointment of their successor.
The decision to appoint Maria as Group Chair was
announced on 4 February 2025, following recommendation
by the Committee. Details of the appointment process can
be found on page 142 of the Group’s 2024 Annual Report.
Further to the decision to appoint Maria Ramos as Group
Chair, the Committee discussed potential candidates to
succeed her as Senior Independent Director. The Committee
identified Phil Rivett as a suitable candidate, having the
requisite skills, experience and corporate memory for the role.
Following recommendation by the Committee to appoint
PhilRivett as Senior Independent Director, the Board
approved his appointment with effect from 8 May 2025.
In light of Maria’s appointment as Group Chair, the
Committee considered a number of changes to the
composition and membership of the committees. Following
the recommendation from the Committee, the Board
approved the appointment of Phil Rivett as Board Risk
Committee Chair, given his strong technical understanding
and broad financial, risk and business experience, and good
understanding of the business and the role of the Board Risk
Committee, having been a member since 2020. In addition,
the Board approved the appointment of Jackie Hunt as
AuditCommittee Chair, given her deep financial literacy and
understanding of the Group and global financial services
industry. She is a qualified Chartered Accountant and has
held a number of senior executive and board positions,
including being a member of audit committees within
thefinancial services industry. She was also appointed
asamember of the Board’s Governance and Nomination
Committee. Read more regarding thedevelopment plans
conducted for Maria, Phil and Jackie in respect of their new
roles on page 153.
Finally, in December 2025 we approved the appointment
ofPhil as a member of the Remuneration Committee with
effect from 1 January 2026.
The Committee keeps the composition of the Board and
itscommittees under review to ensure that it remains
appropriate with the right balance of skills, knowledge,
experience and diversity in accordance with the Board’s
Diversity Policy.
Annual Report 2025 | Standard Chartered 157
Directors’ report
Governance and Nomination Committee report
Appointment process
The directors have power under the Company’s articles of association to appoint new directors. The Committee is responsible
for leading the process for appointments, by identifying suitable candidates based on merit and objective criteria, whilst
considering the promotion of diversity, inclusion and equal opportunity. Recommendations of new Board appointments are
made by the Committee to the Board for approval. Below is an overview of our appointment process.
Election by shareholders
As required by the UK Code, all directors are subject to annual re-election by shareholders, subject to continued satisfactory
performance based upon their annual assessment. Newly appointed directors retire at the Annual General Meeting (AGM)
following appointment andare eligible for election. Non-executive directors are appointed for an initial period of one year
andsubject to (re)election by shareholders at AGMs.
Taking into consideration a range of factors including, but not limited to, each director’s time commitment, performance,
lengthof service and their independence of character and integrity, the Committee recommended to the Board the re-election
of all directors.
Diversity
The Committee is responsible for reviewing the Board Diversity Policy and progress made against it. In addition, the Committee
has regard to the targets set out in the UK Listing Rules, the FTSE Women Leaders Review and the Parker Review.
Action and decision Outcome and impact
Board Diversity Policy
• Reviewed the progress against the policy that was
ineffect during 2025.
• Reviewed the policy and recommended updates to
improve alignment with the Group Diversity & Inclusion
Policy Standard, the 2024 UK Code, the UK Listing Rules
and best practice, as well as enhance the Board’s
oversight and monitoring of the policy.
• We remain satisfied with our progress against our
BoardDiversity Policy which is set out on page 159.
• In December, the Board approved the recommended
changes to the policy with effect from 1 January 2026.
The Board Diversity & Inclusion Policy can be viewed at
sc.com/boarddiversitypolicy
Meet with short-listed candidates to gauge appetite and suitability
Recommend candidate to the Board for review and approval
Discuss the candidates, measuring them against the agreed role specification
Interview final list of candidates
Review long-list of candidates
Engage external recruitment advisor
Conduct candidate search
Agree role specification and key search criteria
Standard Chartered | Annual Report 2025158
Progress against the Board Diversity Policy
Our policy provides for a diverse Board with a wide range of skills and perspectives that its members bring to our Board and its
committees. We set out below our progress against our policy as of 31 December 2025.
Increasing the representation of women on the Board with
an aim to have a minimum of 40% female representation
Female representation on the Board is 45%.
Adopting an ethnicity aspiration of a minimum of 30%
from an ethnic minority background
Representation on the Board from ethnic minority
backgrounds is 36%.
Ensuring that our Board reflects the diverse markets
inwhich we operate
The Board has members either based in or who are nationals
of many of the regions we operate in, including the UK,
Europe, North America, Asia and Africa. Many of the INEDs
have additional experience of having worked and lived in
many of the Group’s other markets. We continue to prioritise
Board representation from our key markets.
Ensuring that the Board is comprised of a good balance
ofskills, experience, knowledge, perspective and varied
backgrounds
The Committee has continued to focus on ensuring that the
Board has the right combination of experience, skills and
attributes required both immediately and in the medium
tolong term. A review is currently being undertaken of the
Board skills and experience matrix to better identify the
depth of experience and potential skills gaps. Deep banking
experience is a particular focus area for a potential
futureINED.
Ensuring that we consider the Group’s aspirations in
relation to disability, sexual orientation, gender identity
and gender expression
We remain committed to all aspects of diversity in our
succession process.
Only engaging search firms who are signed up to the
Voluntary Code of Conduct for Executive Search Firms
Russell Reynolds Associates Limited, who is signed up to the
Voluntary Code, was engaged during 2025 to assist us in
identifying and building a pipeline of high-quality potential
INED candidates. No additional search firms were engaged
with during the year.
Reporting annually on the diversity of the executive
pipeline as well as the diversity of the Board, including
progress being made on reaching the Board’s gender
andethnicity aspirations
We continue to report on our Board and senior talent
succession planning as well as our commitment to
maintaining a diverse Board. We are pleased to have
achieved our gender and ethnicity aspirations.
UK Listing Rules diversity targets and disclosure
We are pleased to report that as at 31 December 2025, our
Board met the diversity targets set out in UK Listing Rules
(UKLR), with 45 per cent of the Board Directors being women,
the senior position of Chair is held by a woman, and four
members of our Board are from minority ethnic backgrounds.
In accordance with UKLR 6.6.6R(10), the tables on page
160detail the composition of the Board and executive
management, as at 31 December 2025. For the purpose
ofthisreporting, ‘executive management’ comprises
members of our Group Management Team and the
GroupCompany Secretary.
This data was collected on a self-reporting basis by each
individual who confirmed which of the categories specified
inthe prescribed tables were most applicable to them.
On 10 February 2026, Diego De Giorgi stepped down
asExecutive Director and Group Chief Financial Officer.
Thischange to the membership of the Board has notaffected
the Company’s ability to continue to meet theUKLR targets.
Annual Report 2025 | Standard Chartered 159
Directors’ report
Governance
The Committee monitors and advises on the impact of changes to corporate governance affecting the whole Group.
Action and decision Outcome and impact
Terms of reference review
• Conducted an annual review of the Committee’s terms
ofreference in November 2025, considering applicable
rules and best practice in the UK and Hong Kong.
• Following the review, and in consideration of the revised
Hong Kong Listing Rules, recommended clarification
ofthe Committee’s responsibility in respect of the
assessment of each director’s time commitment
andcontribution.
• The Board approved amendments to the Committee’s
terms of reference in February 2026.
• Ensured the roles and responsibilities of the Committee
remain appropriate and aligned with best practice.
Subsidiary governance
• Received updates from the Group Heads of CIB and
WRB,who have management responsibility for the
Group’s subsidiaries, on the Group’s approach to
subsidiary governance.
• Reviewed the governance process in place around
succession planning for the Group’s banking subsidiaries.
• Ensured compliance with existing corporate governance
rules across the Group and horizon scanning for changes
across our markets.
Committee performance
• Reviewed progress against the 2025 Action Plan which set
out several actions arising from the internally facilitated
performance review conducted in 2024.
• A review of the Committee’s performance was facilitated
by an independent external reviewer in accordance
withthe UK Code.
• The external reviewer’s report was reviewed and discussed
by the Board with all Committee members present.
• Addressed all actions in the 2025 Action Plan to enhance
the performance of the Committee.
• Developed a 2026 Action Plan to address the external
reviewers’ recommendations from the 2025
performancereview.
• Progress against the 2026 Action Plan will be monitored
during 2026.
Read more on the review on pages 150 to 152.
Meetings
Meetings are scheduled to align with key dates in the Group’s calendar and in accordance with the Committee’s forward
planner. As part of, and in addition to scheduled Committee meetings, the Committee held private members-only meetings.
The Committee Chair reports to the Board on the Committee’s key areas of focus following each meeting.
Number of
Board members
Percentage of
theBoard
(%)
Number of senior
positions on the
Board (GCE,
GCFO, SID and
Group Chair)
Number in
executive
management
Percentage of
executive
management
(%)
Male 6 54.5 3 6 54.5
Female 5 45.5 1 5 45.5
Not specified/prefer not to say – – – – –
Number of
Board members
Percentage of
theBoard
(%)
Number of senior
positions on the
Board (GCE,
GCFO, SID and
Group Chair)
Number in
executive
management
Percentage of
executive
management
(%)
White British or Other White (including minority-white groups) 7 63.6 4 7 63.6
Mixed/Multiple Ethnic Groups – – – – –
Asian/Asian British 4 36.4 – 4 36.4
Black/African/Caribbean/Black British – – – – –
Other Ethnic Group – – – – –
Not specified/prefer not to say – – – – –
Read more on diversity in the Supplementary people information on pages 444 to 449 and on the Group Diversity
andInclusionStandard on pages 214 to 215
Governance and Nomination Committee report
Standard Chartered | Annual Report 2025160
Audit Committee report
judgements made by management and ensured that
disclosures are appropriate.
We worked in close partnership with the Board Risk
Committee (BRC), holding joint meetings to address areas
ofshared responsibility. These included financial crime,
theannual Risk and Control Self-Assessment (RCSA), the
affirmation of the Enterprise Risk Management Framework
(ERMF) and the broader risk management framework,
aswellas internal financial controls for books and records.
We also reviewed the effectiveness of the GIAI function,
Ernst& Young (EY), the Group’s Statutory Auditor, and the
Committee, all of which continue to operate effectively.
We continued close oversight of Financial Crime Risk
(FCR).During 2025 the Committee placed focus on the
financial crime end-to-end programme, a forward-looking
initiativedesigned to build future-proof and resilient FCR
management. We also held a joint meeting with the BRC
focused on FCR, with an external speaker providing insight
onthe external risk landscape. Following this session, a
recommendation was made and approved by the Board
forthe BRC to have sole oversight of FCR, and Compliance
Risks, to consolidate oversight of Principal Risk Types and
avoid duplication.
I invite you to read more about our work in the following pages.
Jackie Hunt
Audit Committee Chair
Committee composition and attendance
Committee member
Scheduled meeting
attendance
Ad hoc meeting
attendance
Jackie Hunt
1
8/8 2/2
Shirish Apte 8/8 2/2
Lincoln Leong 8/8 2/2
Maria Ramos
2
4/4 1/1
Phil Rivett
3
8/8 2/2
1 Jackie was appointed as Committee Chair on 15 September 2025.
2 Maria stepped down as a member of the Committee on 8 May 2025.
3 Phil stepped down as Committee Chair on 15 September 2025.
In addition, there were two joint meetings held with the
BoardRiskCommitteein 2025.
I am pleased to present the Audit Committee report
for2025on pages 161 to 169, which provides an overview
oftheCommittee’s key activities during the year.
Following receipt of regulatory approval, I succeeded
PhilRivett as Audit Committee Chair with effect from
15 September 2025, having been a member of the Committee
for three years. I also assumed the role of Speaking Up Board
Champion. On behalf of the Committee, I would like to thank
Phil for his strong leadership and continued support given
that he remains a member of the Committee. I would also like
to express thanks for his comprehensive handover to me as
incoming Committee Chair to ensure a seamless transition.
During 2025, we remained focused on the Group’s progress
towards ensuring compliance with the Audit and Corporate
Governance (ACG) reforms and Provision 29 of the UK
Corporate Governance Code (UK Code) from 1 January
2026.We focused on the multidisciplinary Group-wide rollout,
withvarious updates provided to the Committee by Finance,
Riskand Group Internal Audit and Investigations (GIAI).
Wespent time discussing the identification of relevant
controls, the implementation of process and controls
mapping, testing and quality assurance, training, tooling
andbusiness readiness. Strengthening the Group’s internal
control environment through the development of the Group’s
Financial Reporting Controls Framework (FRCF) continued to
be a key priority throughout the year. To enhance knowledge
and understanding, two ACG socialisation sessions covering
Material Controls were held in May and September 2025,
towhich all Board members were invited. In addition, the
Board and Committee received training on the determination
ofexpected credit loss (ECL) in accordance with IFRS9.
We scrutinised the integrity of the Group’s published
financialinformation, challenging credit impairments, key
accounting issues, significant accounting estimates and
Additional attendees
Group Chair; Group Chief Executive; Group Chief Financial
Officer (GCFO); Group Chief Risk Officer; Group Chief Internal
Auditor; Group Head, Compliance, Financial Crime &Conduct
Risk (CFCR); and senior representatives from Group Finance,
the Group Statutory Auditor and the Group Company
Secretary also attended Committee meetings.
Jackie Hunt, Audit Committee Chair
Responsibilities
The Committee’s responsibilities are described in this report
and the Committee’s terms of reference which can be viewed
at sc.com/termsofreference.
Annual Report 2025 | Standard Chartered 161
Directors’ report
Audit Committee report
Financial and non-financial reporting
A principal responsibility of the Committee is to monitor and critically assess the integrity of the financial statements, interim
reports, preliminary announcements and related financial reports, including review of any significant financial reporting issues
and judgements. The Committee advises the Board on whether the information presented in the financial statements presents
a fair, balanced and understandable (FBU) assessment of the position and prospects of the Company. The Committee is also
responsible for reviewing the Company’s non-financial reporting disclosures to ensure compliance with relevant standards.
Action and decision Outcome and impact
Financial reporting
• Received detailed reports from the GCFO and the Group’s Statutory Auditor,
EY, in respect of management’s judgements, reporting and audit in relation
to the financial statements.
• Reviewed the clarity and completeness of the disclosures made within the
published financial statements.
• Monitored the integrity of the Group’s published financial statements, such
as half-year and quarterly reports, and formal announcements relating
tothe Group’s financial performance, reviewing the significant financial
judgements, estimates and accounting issues.
Read more on the significant accounting judgements considered during 2025
on page 163.
• The Committee satisfied itself that
theGroup’s accounting policies and
practices are appropriate.
• Ensured alignment with IFRS
andUK-adopted International
AccountingStandards.
• Enhanced disclosure clarity.
Going concern assessment and viability statement
• Reviewed management’s process, assessment and conclusions with respect
to the Group’s going concern assessment and viability statement.
• Reviewed forward-looking Corporate Plan cash flows, including the annual
budget, results of various stress tests that explore the resilience of the Group
to shocks to its balance sheet and business model, principal and emerging
risks, liquidity and capital positions, and key assumptions.
• Recommended to the Board that the financial statements should be
prepared on a going concern basis and recommended the viability
statement to the Board for approval.
Read more on pages 51 to 52 and 217.
• The Board approved the Committee’s
recommendation.
• Satisfied itself that the Company’s risk
management, financial planning and
governance oversight are effective and
forward-looking.
• Ensured that the going concern
assessment and viability statement
disclosures are appropriate and
consistent with the Group’s Strategic
report and other risk disclosures.
Fair, balanced and understandable
• Reviewed drafts of the Annual Report and provided input and challenge to
ensure balance and consistency.
• Received reports from the GCFO and challenged management’s assessment
of the Annual Report, to consider whether it is FBU.
• Evaluated the process for preparing and verifying the Annual Report to
ensure it was appropriate.
• Satisfied itself and recommended to the Board that the processes and
procedures in place ensure that the Annual Report, taken as a whole, is FBU.
The FBU statement can be found on page 217 of the Statement
ofdirectors’responsibilities.
• The Board approved the Committee’s
recommendation.
• The Annual Report is representative of
the year under review and provides the
information necessary for shareholders
to assess the Group’s position and
performance, business model, strategy,
and the business risks it faces.
Non-financial reporting
• Reviewed the principal non-financial disclosures made by Standard
Chartered, including the Pillar 3 disclosures and the publication of the Main
Features of Capital Instruments, Environmental, Social and Governance (ESG)
reporting and Task Force on Climate-related Financial Disclosures (TCFD).
• Received an update on the 2025 climate disclosures within the Annual
Report including new disclosures mandated by Part D of the ESG Reporting
Code (Appendix C2 to the Rules Governing the Listing of Securities on the
Stock Exchange of Hong Kong Limited).
• Ensured that the disclosures are
compliant with standards, frameworks
and principles that are relevant to
theGroup.
• Counselled on the need to ensure
thatclimate disclosures remain
commensurate with the overall
AnnualReport.
Standard Chartered | Annual Report 2025162
Significant matters considered by the Committee
The significant accounting judgements considered during 2025 are detailed below:
Significant matter How it was addressed
Credit impairment • Reviewed and challenged, on a quarterly basis, reports detailing the composition and
credit quality of the loan book, concentrations of risk and provisioning levels, and the key
judgements made in applying the Group Impairment Provisioning Policy, including staging.
• Assessed the overall adequacy of the ECL model output, reviewed, considered and
challenged the economic variables and scenario forecast input to the models, judgemental
post model adjustments (with a focus on the adequacy of non-linearity) and management
overlays in both the wholesale and retail portfolios that were required to estimate ECL
onaquarterly basis.
• Reviewed and discussed updates highlighting expected losses in the Hong Kong
Commercial Real Estate sector, and potential and actual sovereign downgrades.
• In respect of high-risk credit grade and Stage 3 exposures, received briefings on business
plans, including remedial actions and management assessment of the recoveries and
collateral available.
Basis of accounting and
impairment assessment of
China Bohai Bank (Bohai)
• Reviewed and discussed management’s value in use assessment on the Group’s
investment in its associate, Bohai, the appropriateness of the equity method accounting
treatment, including the significant influence assessment, and the related disclosures.
Valuation of financial
instruments held at
fairvalue
• Received reports and updates at each reporting period detailing the key processes
undertaken to produce and validate valuations of financial instruments, including
anychanges in methodology from prior years and significant valuation judgements.
• Received regular updates on the level of unsold positions in the syndication’s portfolio
andthe valuation of these positions and plans for sell down.
• Reviewed credit valuation adjustments, debit valuation adjustments, funding valuation
adjustments and own credit adjustments, and considered the explanation and rationale
for any significant movements.
The Committee confirms that the key judgements and significant issues reported are consistent with the disclosures of key
estimation uncertainties and critical judgements, as set out in Note 1 on pages 330 to 334.
Annual Report 2025 | Standard Chartered 163
Directors’ report
Audit Committee report
External audit
The Committee is responsible for appointing, overseeing the work of, and ensuring the independence, objectivity and
effectiveness oftheGroup’s statutory auditor, EY.
Action and decision Outcome and impact
External Audit Plan and fees
• Reviewed the External Audit Plan and any updates.
• Reviewed and discussed the risks identified by EY’s audit planning, as
well as EY’s planned audit strategy in response to those risks.
• Reviewed the level of audit fees, to ensure that audit work can be
conducted effectively and independently.
• Reviewed and discussed whether the
External Audit Plan is tailored to the
Group’sbusiness and promotes a robust and
quality audit.
• Reviewed and approved the 2025 auditfees.
External audit reports
• Received and discussed EY’s control themes and observations from the
31 December 2024 year-end audit, as well as an update on these
matters later in the year provided by management.
• Received EY’s private Written Auditor Reporting to the Prudential
Regulation Authority for the year ended 31 December 2024 and
reviewed and discussed EY’s approach to Written Auditor Reporting for
the year ended 31 December 2025. Updates from management were
also provided.
• Reviewed EY’s digital plan, which will drive audit quality through
automation, use of data analytics, increased population coverage
andfocused effort of higher audit risk. This included a practical
demonstration of several tools currently being deployed in the
Group’saudit and an overview of those planned for the future.
• Provided feedback to management and
theBoard on the appropriateness of the
financial statements.
• Highlighted areas of improvement to
enhance the quality of the financial
statements.
• Received assurance as to how EY intends
toleverage automation in its audit work.
Annual performance review
• Conducted an annual review of the performance, effectiveness and
independence of EY with input received from Committee members,
chairs of subsidiary audit committees, Group Management Team,
cluster/country chief financial officers, senior members of Group Finance,
Group Internal Audit & Investigations, Risk, Legal and Operations.
• Identified that EY provides a good level of scrutiny and challenge to
management’s judgements and assumptions as set out in their report
on pages 310 to 321.
• EY has allocated sufficient and suitably experienced resources to address
these risks and reviewed the findings from the audit work undertaken.
• EY is considered to be effective, objective and independent in its role
asthe Group’s Statutory Auditor. See ‘Non-audit services’ below for
further information on how independence is safeguarded.
• Recommended the re-appointment of EY as the Group’s Statutory
Auditor to the Board.
• The Board approved and recommended
toshareholders the re-appointment of
EYasthe Group’s Statutory Auditor at the
2025 AGM.
• Maintained independence safeguards.
• Ensured effective oversight of EY and
collaboration with management to increase
audit efficiency.
Standard Chartered | Annual Report 2025164
Non-audit services
The Group’s Auditor Independence Policy includes non-audit
services policies that are based on an overriding principle
that, to avoid any actual or perceived conflicts of interest,
theGroup’s Statutory Auditor should only be used when there
isevidence that there is no alternative in terms of quality
andwhen there is no conflict with their duties as auditor.
Each request for EY to provide non-audit services will be
assessed on its own merits. The following are strictly
prohibited underthe Policy:
• bookkeeping, information technology and internal
auditservices
• corporate finance services, valuation services
orlitigationsupport
• tax or regulatory structuring proposals
• services where fees are paid on a contingent basis
(inwhole or in part)
• consulting services that actively assist in running the
business in place of management as opposed to providing
or validating information, which management then
utilisesin the operation of the business.
The policy requires that annual non-audit service fees are
lower than 70 per cent of the average Group audit fee
overthe previous three consecutive financial years. This cap
excludes audit related non-audit services and services carried
out pursuant to law or regulation. For 2025, the Group spent
$15.5 million (2024: $13 million) on non-audit services provided
by EY (including audit-related assurance services such as
quarterly and half-year reviews and regulatory reporting),
representing 26 per cent of the total fees paid to EY
(2024: 23per cent). Details of EY’s remuneration as the
GroupStatutory Auditor and the types of non-audit services
provided by EY are set out in Note 38 to the financial
statements on page 420.
The policy was reviewed and approved by the Committee
inSeptember 2025.
The non-audit services provided by EY during 2025 complied
with the Company’s non-audit services policies and ensured
that actual or perceived conflicts of interest were avoided,
and EY’s independence and objectivity was maintained.
The Committee considered and concluded there were no
relationships between EY and the Group during 2025 that
adversely affected its independence and objectivity.
Audit tender and lead audit partner rotation
The Company’s last audit tender was in 2017, following which
EY was appointed as the Group’s Statutory Auditor for the
financial year ended 31 December 2020. EY was re-appointed
as the Group’s Statutory Auditor for the financial year ended
31 December 2025 at the 2025 AGM. At the conclusion
oftheaudit for the financial year ended 31 December 2025,
EYhadbeen the Group’s Statutory Auditor for six years.
Micha Missakian, who is experienced in auditing global
banking institutions, served as the lead audit partner for
theCompany following completion of the audit for the
yearended 31 December 2024. Due to the comprehensive
handover from the previous lead audit partner, David
Canning-Jones, the transition of the lead audit partner has
been successful.
As a UK public interest entity, the Group is required to tender
the audit every 10 years and rotate the auditor every 20 years.
As the Committee remains satisfied with EY’s performance,
the Group has no current intention of tendering for an
alternative auditor before the end of the current required
10-year period. The next audit tender will be in respect of
2030 onwards and would likely occur in 2027 to allow for
sufficient transition.
EY is a public interest entity auditor recognised in accordance
with the Hong Kong Financial Reporting Council Ordinance.
During the year, the Company complied with the provisions
of the Statutory Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender Process
and Audit Committee Responsibilities) Order 2014.
Information given to the auditor
Each director believes that there is no relevant information
ofwhich our Group Statutory Auditor, EY, is unaware.
Eachdirector has taken all steps necessary to be aware
ofany relevant audit information and to establish that EY
ismade aware of any pertinent information.
Annual Report 2025 | Standard Chartered 165
Directors’ report
Group Internal Audit and Investigations
The Committee has oversight of Group Internal Audit and Investigations (GIAI), including monitoring its effectiveness
andindependence. GIAI encompasses the activities of the Group Internal Audit (GIA) and Group Investigations teams.
Action and decision Outcome and impact
GIAI reports
• Received reports providing a summary of GIAI activity,
including trends observed and notable outcomes
andopinions.
• Received and discussed a dedicated paper on GIAI’s
assessment of the transformation landscape and a deep
dive into GIAI’s assurance work over the Group’s key
transformation programmes.
• Received updates on material issues raised by GIAI and,
where requested, management developed risk-reduction
plans for items.
• GIAI identified eight key risk themes for 2025:
transformation and change; third-party risk management;
environmental, social and governance; operational
resilience; data quality; financial regulatory reporting;
information and cyber security; and financial crime.
• The Committee satisfied itself that transformation
remains one of the top GIAI risk themes and ensures
coverage through regular change audits, health checks
and business monitoring. The Group is taking steps to
address challenges through enhanced oversight, new
governance structures, and targeted remediation actions.
• The Committee satisfied itself that material issues raised
by GIAI have received sufficient management focus.
Annual plan and budget
• Reviewed and monitored progress against the
2025GIAPlan.
• Reviewed and monitored audit themes, trends and
significant issues.
• Reviewed the 2026 GIA Plan, resourcing and budget.
• Reviewed GIAI’s functional strategy, including GIAI’s
mission, vision and priorities.
• Changes to the 2025 GIA Plan were regularly reviewed
and approved by the Committee.
• The Committee discussed and approved the 2026 GIA
Plan, ensuring alignment with the Company’s principal
risks and strategic priorities.
• The Committee is satisfied that GIAI is appropriately
resourced with sufficient budget.
Group Internal Audit Charter
• Reviewed proposed changes to the GIA Charter. • Discussed and approved changes to the GIA Charter.
Performance assessment and independence
• Discussed the GIA annual self-assessment including
regulatory feedback received and actions being taken
toaddress any findings.
• Received and discussed reports from the Senior Audit
Director, Quality Assurance (QA) & Professional Practices
on the QA function’s view of the quality of GIAI’s audit
work, including trends observed and notable outcomes
and opinions.
• Assessed the role, independence, objectivity and
effectiveness of the GIAI function.
• Progress against the improvement actions identified
fromthe independent external QA review conducted by
Deloitte in 2024, was regularly reported to the Committee.
• Received the internal QA review, which highlighted that
GIA generally complies with the requirements of the GIA
Charter, the Institute of Internal Audit standards and
other regulatory standards, and that there had been
animprovement in the quality of audits from 2024.
• The Committee remained satisfied with GIAI’s
performance against its objectives agreed at the
beginning of the year.
• Demonstrates GIAI’s position and value in the
organisation and its impact, quality, effectiveness,
andefficiency.
• Ensures and confirms that GIAI continues to achieve
itsprimary role to help the Committee, Board and
management to protect the assets, reputation and
sustainability of the Group through independent,
risk-based, timely and objective assurance, advice,
insightand foresight.
• The Committee is satisfied with the independence
andobjectivity of the GIAI function.
Audit Committee report
Standard Chartered | Annual Report 2025166
Internal controls and risk management
The Committee monitors the Company’s systems of internal control, risk management frameworks, and compliance with laws
and regulations. The Committee reviews and considers appropriate actions related to the Group’s procedures for preventing
and detecting fraud and bribery.
Action and decision Outcome and impact
Internal controls and risk management
• A joint meeting was held with BRC to review the annual
RCSA, affirmation of the ERMF and risk management
framework, and the broader risk management
framework, as well as internal financial controls for
booksand records.
• Reviewed the Group’s internal controls including internal
financial controls.
• Received quarterly updates from management on
internal control observations and from EY on areas of
focus which are part of their ongoing audit procedures.
• Discussed reports from GIAI that provide its view on the
system of internal controls across all risk types including
summary highlights of the most significant matters
identified by GIAI and areas of thematic interest that
have arisen as part of the audits and warrant the
Committee’s attention.
• The BRC and the Culture and Sustainability Committee
discussed separate reports from the Group Chief Internal
Auditor on GIAI’s appraisal of controls across key risks,
subject to each committee’s oversight.
Read more on risk management and internal controls
onpages 212 to 213
• Partnered with the BRC to ensure efficiency on matters
ofshared interest.
• Preparation for compliance with Provision 29 of the UK
Code which will apply from 1 January 2026. Read more
onpage 168.
• Enhanced effective operation and monitoring of the
Group’s control environment.
Compliance, Financial Crime and Conduct Risk Function
• Reviewed Standard Chartered’s position to manage
financial crime compliance in an evolving landscape.
• Received a deep dive into the development and progress
of the end-to-end programme for managing financial
crime, a forward-looking programme to build future-proof
and resilient Financial Crime Risk (FCR) management.
• Received reports from the Money Laundering Reporting
Officer in May and December that provided an
overviewof FCR.
• Received CFCR compliance oversight reports.
• Ensured maintenance of effective systems and controls
tomeet legal and regulatory obligations in respect of FCR.
• The financial crime end-to-end programme aims to:
materially enhance client experience, improve risk
effectiveness and improve operational effectiveness
andefficiency.
Whistleblowing oversight
• Reviewed and discussed the annual report on the
operation and effectiveness of Speaking Up, the Group’s
confidential whistleblowing programme.
• The Committee Chair received regular updates on
Speaking Up outside of formal Committee meetings and
met with senior management from our Conduct and
Compliance teams.
• The report provided assurance of the Group’s ongoing
compliance with the PRA and the Financial Conduct
Authority’s Whistleblowing Rules.
Read more on our Speaking Up programme
onpages118to119
The Committee acknowledges the Board’s overall responsibility for the effectiveness of the risk management and internal
control framework, and confirms compliance with UK Code, including section 4 on Audit, RiskandInternal Control. Read more
on risk management and internal controls on pages 212 to 213.
Annual Report 2025 | Standard Chartered 167
Directors’ report
A paper was presented to the Committee that provided a
consolidated overview of concerns raised through the Speaking
Up and grievance channels, as well as via business referrals.
This was presented by representatives from Employee
Relations, GIAI and CFCR to deliver a joined up account.
Strategic Regulatory Reporting Programme
The Committee reviewed and discussed updates to the
Strategic Regulatory Reporting Programme, which is a
programme designed to strengthen aspects of prudential
regulatory reports, with regular progress updates provided
tothe Committee.
Data Risk management
The Committee reviewed and discussed progress on the
delivery of the Group’s refreshed Data Management Strategy,
and the Group’s current data risk exposure. The Committee
focused on data sovereignty and the challenges of operating
across multiple jurisdictions, the various dependencies on
other projects, the prioritisation of critical data elements,
heightened focus on data quality, and the design of the
Global Data Platform.
Complaints deep dives
Dedicated papers on complaint handling in both CIB
andWRB including key areas of focus and themes, and
forward-looking initiatives that will further improve the process
and client experience were received and discussed bythe
Committee. The Committee welcomed the opportunity to
hear from the three lines of defence, which encapsulate the
Group’s approach tomanaging client complaints, and the
focus placed on process improvement and simplification.
Fit For Growth
The Committee was presented with an overview of the
processes and controls around Fir For Growth (FFG) savings.
The Committee received assurance from management that
all FFG savings are subject to appropriate governance and
that there is an appropriate tracking and assurance process
from origination of the savings to embedment.
Aspire programme
An update was provided to the Committee on the Group’s
Aspire programme, which was launched in 2018 to deliver a
modern technology system and data landscape for financial
management and reporting. The programme has modernised
the Group’s financial infrastructure, improved efficiency,
anddelivered substantial financial and operational benefits.
Allcomponents are now live, and it is recognised as industry
leading. Aspire has laid the groundwork for future strategic
delivery, robust controls, and advanced analytics. While the
core transformation is complete, further enhancements and
centralisation efforts are planned for 2026 to maximise value
and consistency. TheCommittee is keen that any lessons
learned from this implementation, can be leveraged for
future technology rollouts.
Climate and net zero model validation
The Committee received an update on the Group’s net
zeromodels and the validation of these under the Group’s
ModelRisk Management framework and provided feedback
to management.
Spotlight on UK Audit and Corporate
Governance reforms implementation
During 2025, the Committee continued its oversight
of the Group’s Material Controls Programme and
FRCF development to ensure compliance with
Provision 29 of the UK Code ahead of its
implementation for the Group’s financial reporting
year beginning on 1 January 2026.
The Committee received regular reports on the
implementation of the Material Controls Programme
and FRCF from management through formal
Committee meetings and informal sessions.
Throughout 2025, an initial list of Material Controls
was defined and the testing and assurance strategy
was also defined. Governance structures were
developed to support operational alignment to
theUK Code.
A dry run of the Material Controls lifecycle was
conducted for FY 2025. In December 2025, the
Committee reviewed and provided feedback on
management’s proposed approach to the disclosure
on Materials Controls.
The 2026 Annual Report will include the Board’s
firstrequired declaration on their effectiveness
ofMaterial Controls (including additional detail
forany Material Controls that have not
operatedeffectively).
Audit Committee report
Other areas of focus
Tax
The Committee approved the updated UK Tax Strategy for
the year ending 31 December 2025 and approved Standard
Chartered PLC country-by-country reporting for the year
ended 31 December 2024, which can be found on the Group’s
website sc.com/country-by-country-disclosure.
Legal and regulatory matters
The Committee received and discussed updates on major
disputes and significant regulatory government investigations
facing the Group. The Committee also reviewed management’s
judgements on the level of provisions and the adequacy
ofdisclosure.
Non-financial misconduct
The Committee reviewed analysis and notable trends on
non-financial misconduct (NFM) matters and key actions
being taken to address such matters within the Group.
TheCommittee discussed the NFM training provided to
employees and the reporting channels available. Training is
now being delivered with a focus on using anonymised case
studies to drive key messages throughout the organisation.
Reporting channels and the possibility of a separate channel
for sexual harassment reporting given the sensitivities
involved was also considered.
Standard Chartered | Annual Report 2025168
Governance
Action and decision Outcome and impact
Terms of reference review
• Conducted an annual review of the Committee’s terms
ofreference in December 2025, considering applicable
rules and best practice in the UK and Hong Kong and
theACG reforms.
• Following the review, alongside the BRC, the Committee
recommended material changes in relation to the transfer
of oversight of FCR and Compliance Risk to the BRC.
Inlight of the ACG reforms, the Committee’s responsibilities
regarding material controls were defined.
• The Board approved the recommended amendments
tothe Committee’s terms of reference in February 2026.
• Ensured the role and responsibilities of the Committee
remain appropriate and aligned with best practice.
Committee performance review
• Regularly reviewed progress against the 2025 Action Plan,
which set out actions arising from the internally facilitated
performance review conducted in 2024.
• A review of the Committee’s performance was facilitated
by an independent external reviewer, in accordance with
the UK Code.
• The external reviewer’s report was reviewed and
discussed by the Board with all Committee
memberspresent.
• Addressed all actions in the 2025 Action Plan to enhance
the performance of the Committee.
• Developed a 2026 Action Plan to address the
externalreviewer’s recommendations from the 2025
performance review.
• Progress against the 2026 Action Plan will be monitored
during 2026.
Read more on the review on pages 150 to 152.
Committee composition
In accordance with the UK Code, the Committee’s
membership comprises independent non-executive directors
who have a deep and broad experience of banking and
therisk factors affecting the Group, including geopolitical,
economic, IT, financial crime and general business risks.
TheBoard is satisfied that the Chair of the Committee, Jackie
Hunt, has recent and relevant financial experience. Jackie
isaqualified chartered accountant and has held a number
ofsenior management positions within the financial services
sector. The skills and experience of each member can be
found on pages 131 to 134.
Meetings
Meetings are scheduled to align with key dates in the Group’s
financial calendar and in accordance with the Committee’s
forward agenda. As part of, and in addition to, scheduled
Committee meetings, the Committee held private
members-only meetings.
The Committee also met with the Group’s Statutory Auditor,
EY, and the Group Chief Internal Auditor, without management
being present.
During the year, the Committee Chair also met regularly with
the EY partners leading the Group’s audit. The Committee
Chair held regular meetings with the Group Head, CFCR and
Group Chief Internal Auditor, and met with members of senior
management to ensure there was sufficient oversight of their
work and key emerging issues.
The Committee Chair reports to the Board on the
Committee’s key areas of focus following each meeting.
Financial Reporting Council Minimum Standard
The Committee confirms that the Committee’s activities
during the year including interactions with management,
GIAIand EY, as set out in this report, have complied with
theFinancial Reporting Council’s Audit Committees and the
External Audit: Minimum Standard issued in May 2023.
Annual Report 2025 | Standard Chartered 169
Directors’ report
Board Risk Committee report
We have continued our review of the Group’s key change,
technology and simplification programmes, including the
consideration of external disruptive incidents and the operational
risks posed. Information and Cyber Security (ICS) Risk remained
an important priority, with focus placed on our approach to
vulnerability management, third parties and responsible use of AI.
We dedicated time throughout the year to undertake education
sessions on software security vulnerability management,
managing quantum computing ICS risks, Climate Risk including
Nature Risk, and Model Risk Management (MRM), which has
enabled the Committee to consider these risks through a broader,
more anticipatory lens.
In July 2025, the Group appointed Jason Forrester as its GCRO,
effective from 1 January 2026, following regulatory approval
received in December 2025. Onbehalf of the Committee, I would
like to thank Sadia Ricke, as departing GCRO, for her significant
contributions in driving a client-focused, risk-aware approach
and for her valuable contributions in and outside of meetings.
Ilook forward to working with Jason in his new role. The
Committee underwent some membership changes in late 2024
and early 2025, andIam pleased to report that the Committee
isoperating effectively and is well placed to oversee and
challenge the risks faced by the Group, with the mitigation
wehave in place.
Phil Rivett
Board Risk Committee Chair
Committee composition and attendance
Committee member
Scheduled meeting
attendance
Ad hoc meetings
attendance
Phil Rivett
1
6/6 3/3
Shirish Apte 6/6 3/3
Jackie Hunt 6/6 3/3
Diane Jurgens
2
6/6 2/3
Robin Lawther, CBE
3
6/6 2/3
Maria Ramos
4
3/3 n/a
In addition, there were two joint meetings held with the
AuditCommittee in 2025.
I am pleased to present the Board Risk Committee report, which
provides an overview of the Committee’s key activities during
2025, on pages 170 to 175. I was appointed as Interim Chair of the
Committee on 8 May 2025 and, following regulatory approval,
assumed the role of Committee Chair on1 August 2025, having
been a member of the Committee for five years. I would like to
extend my gratitude to Maria Ramos, the previous Committee
Chair, for her strong leadership onrisk oversight and for her
comprehensive handover to me as incoming Chair.
This year we focused on carefully monitoring sovereign
andgeopolitical risks, particularly our response to sovereign
downgrades and volatility in key markets. A close watch has
been kept on US tariffs and the risk of higher global inflation and
fluctuating oil prices fuelled by the Russia-Ukraine and Middle
East conflicts for their impacts on our markets. Thissupported the
work on strengthening our approach tostress testing, mindful
ofthe uncertain macroeconomic outlook. The monitoring of
sovereign and geopolitical risks and strengthening of our stress
testing will remain on the Committee’s agenda for 2026 and
beyond. We have also reviewed and challenged that the Group
has appropriate Risk Appetite boundaries and metrics in place to
achieve itsstrategic aspirations, in line with the Corporate Plan.
We have overseen the work underway on resolution and recovery
planning, in particular, addressing our restructuring planning
capabilities in response to feedback received from the Bank of
England (BoE), cognisant of the work of the Board in this area.
Credit Risk has also been carefully monitored in light of the
macroeconomic environment. OurCIB and WRB Risk Reviews
covered sector deep divesincluding oil and gas, solar and electric
vehicles, alongsidereporting of our credit card, personal loan and
partnership portfolios.
Additional attendees
Group Chair; Group Chief Executive; Group Chief Financial Officer;
Group Chief Risk Officer (GCRO); Group Head of Enterprise
RiskManagement; Group Treasurer; Group Head, Compliance,
Financial Crime & Conduct Risk; Group Chief Internal Auditor;
theGroup’s Statutory Auditor and the Group Company Secretary
also attended Committee meetings.
Sir Iain Lobban, our cyber adviser to the Board,
regularly attended discussions on ICS Risk, Financial
Crime Risk (FCR)and technology-related matters.
Phil Rivett, Board Risk Committee Chair
David Tang, a Board member with IT expertise, also attended
technology-related discussions.
EY attended all Committee meetings in 2025. The Committee
Chair regularly meets with senior leaders of the Risk function,
including the GCRO.
Responsibilities
The Committee’s responsibilities are described in this report
andthe Committee’s terms of reference which can be viewed at
sc.com/termsofreference.
1 Phil was appointed as interim Committee Chair on 8 May 2025, and
receivedregulatory approval as Committee Chair on 1 August 2025.
2 Diane was unable to attend one ad hoc meeting which was scheduled at short
notice due to the time zone difference. She had access toall relevant materials
prior to the meeting and opportunity to provide feedback.
3 Robin was unable to attend one ad hoc meeting which was scheduled at short
notice due to pre-existing commitments. She had accessto all relevant materials
prior to the meeting and opportunity toprovide feedback.
4 Maria stepped down as Committee Chair on 8 May 2025.
Standard Chartered | Annual Report 2025170
Principal areas of focus
The table below provides an overview of the principal areas considered by the Committee during the year and the associated
outcome and impact of those activities:
Action and decision Outcome and impact
Macro, sovereign and geopolitical risks
• Discussed regular reports from the GCRO on global
conflicts, the decoupling of China and the US, US tariffs
and executive orders and market volatility.
• Assessed country risks through our Country Risk Early
Warning system and performed out-of-cycle reviews
forat-risk sovereigns.
• Kept abreast of the evolving macro, sovereign and
geopolitical risk environment, critical for wider discussions
on stress testing.
• Identified key emerging risks and opportunities and
critically assessed their potential impact on the Group,
ourclients, colleagues, markets and regulators.
• Challenged management on Risk Appetite metrics
relating to Single Country Risk Exposure considering
external environment volatility.
Stress testing
• Reviewed and challenged the Group’s Internal Capital
Adequacy Assessment Process (ICAAP) and Internal
Liquidity Adequacy Assessment Process (ILAAP)
submissions, including scenarios analysis, stress test
outcomes and reverse stress test results.
• Reviewed and challenged the 2025 BoE Bank Capital
Stress Test.
• Reviewed an overview of internal and regulatory stress
scenarios used across the stress continuum including
updates arising due to emerging sovereign and
geopolitical risks.
• Approved submissions of the following to the Prudential
Regulation Authority (PRA): ICAAP, ILAAP and the Bank
Capital Stress Test.
• Challenged the outcomes and key findings arising from
stress tests to monitor our resilience.
• Critically assessed our approach to stress testing and
challenged management to consider its use to further
enhance performance and accelerate the use of stress
testing tools.
Read more on stress testing on pages 221 to 222.
Recovery and Resolution Planning
• Discussed regular updates on the Group’s recovery
andresolution capabilities, with particular focus on
workto address the findings from the BoE’s 2024
resolvability assessment.
• Reviewed and challenged the Group’s Recovery Plan.
• Reviewed work undertaken to achieve compliance with
the PRA’s Trading Activity Wind-Down requirements.
• Ensured continued robust oversight, governance, testing
and assurance of resolution planning in preparation for
the next Group Resolvability Self-Assessment Report due
in October 2026.
• Provided feedback on the Group’s activities to improve
recovery and resolution planning capabilities and
arrangements, including on restructuring planning.
• Regularly checked that the Committee’s work on
resolvability is complementary to that of the Board.
Read more on Recovery and Resolution Planning
onpages228 to 229.
Technology and Operations (T&O) Risk
• Reviewed and discussed updates on key technology-
related change programmes covering our core banking
applications and data centres, focused on progress,
interdependencies, milestones, resources, key risks and
regulatory engagement.
• Discussed changes to the T&O function and risk profile.
• Tracked progress of key change programmes and
heldmanagement to account on deliverables and
committed timelines.
• Probed into the T&O risk profile with each of the three
lines of defence ensuring robust risk management.
• Recognised the industry-wide increase in third-party risk
and challenged management on the mitigation plan.
Annual Report 2025 | Standard Chartered 171
Directors’ report
Action and decision Outcome and impact
Information and Cyber Security Risk
• Reviewed the progress being made on ICS Risk
management, with papers and input from the three lines
of defence.
• Received Chief Information Security Officer Management
Information reports, providing a holistic end-to-end risk
management view, including key metrics.
• Requested and received training on software security
vulnerability management and managing quantum
computing ICS Risks, which was opened up to the Board.
• Considered the ICS strategy focusing on cyber resilience
and enabling growth.
• Received regular external perspective from Sir Iain Lobban.
• Maintained focus on ICS Risk management, including
control indicator performance.
• Recognised that ICS Risk management continues to
strengthen, in an ever changing and dynamic landscape.
• Challenged management on key ICS priorities to ensure
continued focus in the evolving environment.
• Discussed software security vulnerability management
and managing quantum computing ICS Risks.
• Recommended the ICS strategy to the Board for
endorsement.
Operational resilience
• Reviewed the Group’s overall readiness position against
the Supervisory Statement (SS) 1/21 policy implementation
date of 31 March 2025.
• Considered material changes to Important Business
Services (IBS) and Impact Tolerance Statements (ITOL)
for Corporate & Investment Banking (CIB) and Wealth
&Retail Banking (WRB).
• Reviewed the Treasury Select Committee’s letter to
another UK bank following IT system failures and
explored how the Group would have responded to this
letter to understand any lessons learned and
improvement opportunities.
• Approved the Operational Resilience Group
Self-Assessment for submission to the PRA.
• Challenged the level of testing needed given the
interdependencies with other significant change
programmes and the priorities of our global regulators.
• Approved material changes to the Group’s IBS and ITOL.
• Recognised the dependency on our major business
centres, challenging management to ensure adequate
consideration of this dependency in resilience planning.
Credit Risk
• Paid particular attention to the CIB and WRB portfolios
toensure they remain resilient.
• Focused on credit cards, personal loans and partnerships,
where elevated risk has been observed.
• Considered portfolio deep dives including oil and gas,
solar and electric vehicles in light of the evolving
geopolitical landscape.
• Challenged and received assurance on the alignment
ofCredit Risk Appetite metrics to strategy.
• Challenged Credit Risk oversight in our expanding
markets to ensure robust oversight supporting
portfoliogrowth.
• Probed into potential concentrations in certain industries.
• Reviewed and challenged the results of credit stress tests.
Transformation
• Tracked the progress of our key transformation
programmes and probed into the challenges faced.
• Reviewed and discussed an overview of our
Transformation Office including its governance, resources
and prioritisation.
• Challenged the resources, budget and timelines of our
keytransformation programmes to ensure progress.
• Risk oversight, time management and the resources of our
key transformation programmes will continue as a key
focus in 2026.
Financial Crime Risk
• Discussed reporting on controls in our WRB and
CIBportfolios.
• In conjunction with the Audit Committee, considered
thekey emerging threats in this space.
• Received insights from an external speaker on the
broader Financial Crime Risk (FCR) landscape.
• Considered the oversight of FCR across the Board Risk
Committee and the Audit Committee to ensure maximum
focus and eliminating potential duplication.
Board Risk Committee report
Standard Chartered | Annual Report 2025172
Action and decision Outcome and impact
Risk Appetite
• Reviewed and challenged the changes to the Group’s Risk
Appetite and Board metrics twice during the year through
interim and annual reviews.
• Recommended the Group Risk Appetite and Board
metrics to the Board for approval following its
annualreview.
• Provided feedback to management on key metrics
including ICS and FCR.
• Approved the interim changes to the Group Risk Appetite
and Board metrics.
• The Board approved the Group Risk Appetite and Board
metrics, following recommendation from the Committee.
• Ensured the affordability of the Risk Appetite against
capital capacity, while allowing achievement of 2026
Corporate Plan.
Read more on the Group’s Risk Appetite onpage221.
Enterprise Risk Management Framework
• In conjunction with the Audit Committee, reviewed the
outcomes from the annual effectiveness review of the
Enterprise Risk Management Framework (ERMF).
• Reviewed proposed changes to the ERMF following
itsannual review and recommended the updated ERMF
tothe Board for approval.
• Reviewed material changes to Risk Policies.
• Received affirmation from the GCRO that the ERMF is
materially effective and adequately highlights risks and
improvement areas.
• The Board approved the material changes to the ERMF
following recommendation from the Committee.
Read more on the ERMF on pages 220 to 225. Further details
on Principal Risk Types (PRTs), including definitions of each,
are set out on pages 222 to 223.
Model Risk
• Discussed reports on MRM and the ongoing
implementation work arising from the PRA’s MRM
requirements (SS1/23).
• Received training on MRM.
• Continued to focus on the Group’s Model Risk profile
whilerecognising the progress made on MRM.
• Dedicated time and space for MRM training, including UK
regulators’ requirements regarding Board-level oversight.
Treasury Risk
• Reviewed and discussed reports on our capital and liquidity
position cognisant of the evolving regulatory environment.
• Discussed an enhanced risk-based framework for
managing the capital and liquidity risks of the Hold
toCollect portfolio.
• Challenged and recommended the Contingent Liquidity
Risk Framework, including a Board Risk Appetite metric,
tothe Board for approval.
• Reviewed and challenged regulatory submissions
including ILAAP and ICAAP.
• The Board approved the Contingent Liquidity Risk
Framework, following the Committee’s review
andrecommendation.
• Ensured the enhanced Hold to Collect portfolio
framework supported the structural hedging programme
while managing the risk dynamically.
Digital assets
• Dedicated time assessing whether our risk management
framework (RMF) is fit for purpose to mitigate digital
asset specific risks, in line with the Group’s aspirations
inthis space.
• The review of the RMF supports our digital asset strategy
discussions by the Board.
Traded Risk
• Reviewed and challenged the key financial and
non-financial risks of our trading business including Risk
Appetite and stress testing results.
• Confirmed traded risk is well understood and managed
inline with established Risk Appetite.
Non-Financial Risks
• Closely monitored Non-Financial Risk reporting to
ensurethe Group remains on track to achieve annual
riskreduction.
• Received reports on Elevated Residual Risks and Material
Risk events.
• Discussed a Third-Party Risk Management (TPRM)
update and refreshed strategy.
• Delved into material and thematic issues, with robust
challenge of any overdue items to ensure progress
toachieve risk buydown targets.
• Recognised the ever-growing challenge of TPRM
andprovided feedback on the TPRM strategy ahead
ofitssubmission to the Board for approval.
Annual Report 2025 | Standard Chartered 173
Directors’ report
Action and decision Outcome and impact
Internal Controls
• Discussed reports from Group Internal Audit &
Investigations covering the appraisal of controls across
key risks within the Committee’s scope.
• In conjunction with the Audit Committee, reviewed
theoutcomes of the annual Risk and Control
Self-Assessment (RCSA).
• Reviewed and discussed an addition to its terms of
reference on the oversight of material controls alongside
the Audit Committee, which was recommended to the
Board for approval.
• Encouraged management to ensure that the RCSA
process continues to identify the real risks faced
bytheGroup in its day-to-day operations.
• Ensured that appropriate mitigations and controls are
inplace for material risk events.
Environment, Social, Governance and Reputational Risk
• Reviewed and discussed a paper on the Group’s
approach to Environment, Social, Governance and
Reputational Risk.
• Requested and received training on Climate Risk,
including Nature Risk.
• Reviewed the key areas of reputational risk faced
bytheGroup.
• Devoted time and space to discuss Climate Risk and
Nature Risk, including UK regulators’ current requirements
and future expectations regarding Board-level oversight.
Alignment ofrisk and remuneration
• Received and discussed the risk factors to be considered
by the Remuneration Committee in determining
incentives as part of the 2025 year-end review.
• Assisted the Remuneration Committee in its assessment
as to whether remuneration aligns with effective
riskmanagement and does not encourage
excessiverisk-taking.
Read more on utilising remuneration as a risk management
tool in the Directors’ remuneration report on pages 180 to 206.
Regulatory
• Discussed key communications received from the PRA
and Financial Conduct Authority.
• Reviewed and discussed the BCBS 239 2024
self-assessment exercise and actions to address
identifiedgaps.
• Ensured coverage of the 2025 regulatory priorities within
the scope of its responsibilities and encouraged continued
engagement with regulators.
Board Risk Committee report
Standard Chartered | Annual Report 2025174
Governance
Action and decision Outcome and impact
Terms of reference review
• Conducted an annual review of the Committee’s terms
ofreference in December 2025, considering applicable
rules and best practice in the UK and Hong Kong and
theACG reforms.
• Following the review, alongside the Audit Committee, the
Committee recommended material changes including
the transfer of the oversight of FCR and Compliance Risk
from the Audit Committee to the Board Risk Committee.
Anew material controls responsibility was added in light
of the ACG reforms to complement the oversight of the
Audit Committee.
• The Board approved the proposed amendments to
theCommittee’s terms of reference in February 2026.
• Ensured the role and responsibilities of the Committee
remain appropriate and align with best practice.
Committee performance review
• Regularly reviewed progress against the 2025 Action Plan
which set out actions arising from the internally facilitated
performance review conducted in 2024.
• A review of the Committee’s performance was facilitated
by an independent external reviewer, in accordance with
the 2024 UK Corporate Governance Code.
• The external reviewer’s report was reviewed anddiscussed
by the Board with all Committee memberspresent.
• Addressed all actions in the 2025 Action Plan to enhance
the performance of the Committee.
• Developed a 2026 Action Plan to address the
externalreviewer’s recommendations from the 2025
performancereview.
• Progress against the 2026 Action Plan will be monitored
during 2026.
Read more on the review on pages 150 to 152.
Committee composition
The Committee’s membership comprises independent
non-executive directors (INEDs) who have a deep and broad
experience of banking and the risk factors affecting the
Group, including geopolitical, economic, IT, financial crime
and general business risks. The skills and experience of each
member can be found on pages 131 to 134.
Meetings
Meetings are scheduled to align with key dates in the
Group’scalendar and in accordance with the Committee’s
forward agenda. As part of, and in addition to scheduled
Committee meetings, the Committee held private
members-only meetings.
Two private sessions between Committee members and the
GCRO were held in 2025.
The Committee Chair reports to the Board on the
Committee’s key areas of focus following each meeting.
Risk information provided to the Committee
The Committee is authorised to seek any information that
willallow it to fulfil its governance mandate relating to risks
to which the Group is exposed, and alert senior management
when risk reports do not meet its requirements. The Committee
receives regular reports on risk management and tracks a
wide range of risk metrics through a Board Risk Information
Report which provides an overview of the Group’s risk profile
against the Group’s Risk Appetite Statement. TheGCRO’s
report covers the macroeconomic environment, geopolitical
outlook, material events and disclosures and ongoing risks.
Coverage of PRTs and regulatory matters are also included
inthis report.
Resources
The Committee has sought and received assurance that
theRisk function is adequately resourced to perform its
remiteffectively.
Annual Report 2025 | Standard Chartered 175
Directors’ report
Culture and Sustainability
Committeereport
Communities’ membership since last year, and colleagues
who are members demonstrate higher scores on the
engagement metrics than non-members, demonstrating
their measurable impact. In addition, we discussed and
guided management on the launch of the new sponsorship
programme that is being piloted with our Accelerate Black
and African talent. The programme is for individuals who
have been identified as having the skills, aspirations and
valued behaviours that indicate they can take on bigger
andmore complex challenges in the future.
The sharpening of the Group’s strategy to focus on areas
where we are most competitive and differentiated led
management to review our culture to ensure it was appropriate
and to understand what aspects of our culture will best serve
our clients and our growth ambitions. We endorsed the
Group’s new cultural markers of client-centricity, innovation
and collaboration, which must be embedded to deliver the
Group’s strategy, while challenging management on the
actions needed to embed these and ensure consideration
isgiven to any unintended consequences.
Over the course of the year, we have been reviewing and
shaping the evolution of the Group’s corporate philanthropy
approach to amplify the impact the Group can have on its
commitment to the economic empowerment of underserved
young people. Aligned to the Group’s purpose, brand promise
and ‘Lifting Participation’ Stand, the Standard Chartered
Foundation will harness the Group’s expertise to help tackle
inequality and reach communities who might otherwise not
experience the benefits of the Bank.
Dr Linda Yueh, CBE
Culture and Sustainability Committee Chair
Dr Linda Yueh, Culture and Sustainability Committee Chair
Committee composition and attendance
Committee member
Scheduled meeting
attendance
Dr Linda Yueh, CBE 3/3
Diane Jurgens 3/3
Robin Lawther, CBE 3/3
David Tang 3/3
I am pleased to present the Culture and Sustainability
Committee report on pages 172 to 175, which provides
anoverview of the Committee’s key activities during 2025.
We are pleased to report that the Group has exceeded the
sustainable finance target of at least $1 billion in sustainable
finance income by 2025 and is on track to meet the target
of$300 billion mobilised by 2030.
This year we have overseen good progress in both target
setting and delivering on the Group’s public sustainability
commitments. We are incredibly proud of the Group’s
contribution to both global and core regional market
sustainability projects, initiatives and coalitions that are
delivering differentiated impact and helping to mature and
advance the field of sustainability. We are conscious of the
volatile external environment which has seen a market
retrenchment by the US administration on sustainability
policies. Nonetheless, there are several key macroeconomic
trends and a geographic divergence that largely embraces
sustainability in the Group’s core markets outside the US
andwill continue to present significant opportunities for
theGroup to pursue.
On nature, an increasingly important aspect of sustainability,
the Group has published its first Nature Report alongside
thisAnnual Report, as an early adopter of the Taskforce
onNature-related Financial Disclosures (TNFD). Read our
Nature Report at www.sc.com/nature.
During the year we have overseen the progress being
madeon diversity and inclusion (D&I) which has also faced
challenges with the evolving US landscape. We’re pleased
tosay that the Group remains fully committed to D&I and
thisunwavering commitment has been reaffirmed both to
colleagues within the business and externally. This has been
put into action through Colleague Communities which are
employee-led, Bank-supported networks that bring together
colleagues with shared experiences to foster inclusion and
drive business impact. The latest employee engagement
survey shows a nine percentage point increase in Colleague
Additional attendees
Group Chair; Group Chief Executive; Group Head of HR;
ChiefSustainability Officer; Chief Auditor – Functions;
andGroup Company Secretary also attended Committee
meetings in 2025.
Responsibilities
The Committee’s responsibilities are described in this report
and the Committee’s terms of reference which can be viewed
at sc.com/termsofreference.
Standard Chartered | Annual Report 2025176
Culture
The Committee is responsible for reviewing the way the Group develops, manages and embeds its culture and the Group’s
approach to its purpose, values, diversity and inclusion, employee engagement and workforce policies and practices.
Action and decision Outcome and impact
Culture
• Reviewed and provided feedback on the next iteration
ofthe Group’s culture which aligned it with the Group’s
refocused strategy and identified the cultural markers
that must be nurtured to deliver the strategy as well as
tomake work easier, more efficient, and more effective.
• Received a summary of the annual My Voice employee
engagement survey.
Read more on the Group’s culture and how it has been
embedded on page 32 to 36 and 150.
• Provided guidance on how to implement the cultural
markers and identified the potential unintended
consequences.
• The Committee Chair met with the HR team to evaluate
data, insights, and external best practice.
Diversity and Inclusion
• Received progress updates which focused on the three
Diversity and Inclusion (D&I) strategic priorities – to
develop a diverse talent pipelining mindset; build
sponsorship muscle; and refresh Colleague Communities
– while being mindful of the challenging external
landscape and the opportunities this provided for the
Group to differentiate.
• Tracked progress being made towards the Group’s D&I
strategic priorities and provided guidance on a number
ofareas including the Group’s sponsorship programme,
the target for 35 per cent women at senior levels by
2028and the challenges being faced with collecting
colleagueD&I data.
Board workforce engagement
• Discussed adjustments to the current Board workforce
engagement (BWE) framework and received a summary
of the themes and feedback from the 2025 engagements.
• Provided guidance and endorsed the adjusted BWE
framework which will be in place from 2026.
Sustainability
The Committee is responsible for reviewing the Group’s Sustainability Strategy and progress against the Group’s external
commitments, Sustainability Aspirations and key sustainability priorities. The Committee also keeps emerging sustainability
issues under review.
Action and decision Outcome and impact
Net zero
• Received and discussed a progress update on the
Group’snet zero roadmap, which included a review
oftheevolving sustainability market landscape andthe
potential risks that needed to be monitored. Discussion
included a deep dive into progress against our
science-based targets for our 12 high-emitting sectors.
• Tracked the Group’s net zero progress, probed into
thechallenges being faced, requested analysis on the
response that peers were taking to the issues being faced
in the current sustainability environment, and endorsed
the approach to annually disclose the Group’s methane
portfolio emissions intensity.
Group’s sustainability strategy
• Reviewed and discussed the Group’s sustainability
strategy in light of the market developments following
USpolicy changes at the start of 2025.
• Reviewed and discussed the 2026 sustainability strategy
and the action plan at the end of 2025.
• Provided guidance and feedback which was incorporated
into the Group Management Team’s discussions on the
sustainability strategy.
• Endorsed management’s recommendation to reconfirm
the Group’s ambition to remain a sustainability thought
and action leader given the value creation opportunity
sustainability presents for the Group.
Group’s Sustainability Aspirations
• Received the annual update on the Group’s
SustainabilityAspirations.
• Tracked progress against the Group’s Sustainability
Aspirations and endorsed the proposal to modify two
ofthe existing underlying KPIs. Details of these are set
outon page 454 to 457.
Annual Report 2025 | Standard Chartered 177
Directors’ report
Action and decision Outcome and impact
ESG ratings
• Discussed an update on the Group’s performance against
assessments produced by the Group’s prioritised external
ratings agencies.
• Reviewed the 2025 priority ESG ratings and discussed
theforward strategy to address the identified gaps.
Modern Slavery
• Received an update on progress made against the
Modern Slavery Statement (MSS) commitments, and
theproposed actions to improve the content of the
Group’s MSS.
• Tracked progress against the MSS commitments
andchallenged management’s actions to prevent
modern slavery.
CSO’s Report
• Received regular reports from the CSO covering a wide
range of sustainability updates including peer bank
developments, regulation, policies and developments
impacting the Group’s key markets, and the Group’s
participation in COP30.
• Reviewed the Group’s substantive
sustainabilitymemberships.
• Kept abreast of the fast-changing sustainability
landscape, including the Group’s response and progress
compared to peers.
• Ensured that appropriate governance is in place to
manage the reputational risk of the Group’s sustainability
memberships and that any costs, both time and
monetary, were commensurate with the value obtained.
Remuneration metrics
• Reviewed and provided feedback on the proposed
sustainability measures for inclusion in the Group’s
remuneration scorecards.
• The Group scorecard and Long-Term Incentive
Plan(LTIP)scorecard were approved by the
RemunerationCommittee.
Our Stands
The Committee is responsible for monitoring progress against achievement of the Stands.
Action and decision Outcome and impact
Our Stands
• Reviewed and tracked progress against the three
Stands:Accelerating Zero, Lifting Participation and
Resetting Globalisation.
Read more about our Stands on our website
sc.com/purpose
• Accelerating Zero: Tracked progress against the
sustainable finance mobilisation target, commended
management on the progress made towards advancing
the sustainability ecosystem and probed into the
headwinds being faced in some of the net zero sectors.
• Resetting Globalisation: Challenged and received
assurance that the Group remained ahead of the evolving
external environment with respect to the alternative
methods of payments that are emerging and commended
management for the excellent progress being made.
• Lifting Participation: Discussed the challenges with
achieving the LTIP target due to the shifts in the Group’s
strategy and agreed with management’s approach
torealign this Stand. The 2026–2028 LTIP awards have
simplified performance measures, in line with the
Directors’ remuneration policy, and no longer include
measures relating to our Stands.
Group’s community impact strategy
• Reviewed and provided feedback on the proposal to
reposition the Group’s corporate philanthropy approach.
Discussion included the programme portfolio, alignment
with the refreshed Brand Strategy, potential models to
increase client collaboration, and build out of ecosystem
approach to drive greater impact.
• Provided guidance and challenge on the ongoing work
tostrengthen the Standard Chartered Foundation as a
central, impact-focused platform, elevated to oversee the
Group’s corporate philanthropy. The main focus will be
maintained on youth employment and entrepreneurship.
Culture and Sustainability Committee report
Standard Chartered | Annual Report 2025178
Group Internal audit and investigations
The Committee receives an annual report from the Group Chief Internal Auditor on their work around culture, sustainability
andother matters relevant to the Committee’s remit.
Action and decision Outcome and impact
Group Internal Audit and Investigations
• Received a report from the Group Chief Internal Auditor
on their activities including trends observed and notable
outcomes and assessments with respect to culture
andsustainability.
• Reviewed the emerging trends from Group Internal Audit
and Investigations’ work in relation to the Committee’s
remit and counselled management on the key themes
that needed to be addressed.
Governance
Action and decision Outcome and impact
Terms of reference review
• Conducted the annual review of the Committee’s terms
ofreference in December 2025 and recommended minor
changes to the Board.
• The Board approved minor amendments to the
Committee’s terms of reference in February 2026.
• Ensured the role and responsibilities of the Committee
remain appropriate and aligned with best practice.
Committee performance review
• Reviewed progress against the 2025 Action Plan which set
out several actions arising from the internally facilitated
performance review conducted in 2024.
• A review of the Committee’s performance was facilitated
by an independent external reviewer in accordance with
the UK Code.
• The external reviewer’s report was reviewed and
discussed by the Board.
• Addressed all actions in the 2025 Action Plan to enhance
the performance of the Committee.
• Developed a 2026 Action Plan to address the
externalreviewer’s recommendations from the 2025
performancereview.
• Progress against the 2026 Action Plan will be monitored
during 2026.
Read more on the review on pages 150 to 152.
Meetings
Meetings are scheduled to align with key dates in the Group’s calendar and in accordance with the Committee’s forward
planner, developed by the Committee Chair and the Company Secretary. As part of, and in addition to scheduled Committee
meetings, the Committee held private members-only meetings.
The Committee Chair reports to the Board on the Committee’s key areas of focus following each meeting.
Annual Report 2025 | Standard Chartered 179
Directors’ report
Key sections
Remuneration Committee Chair’s statement Page 181
Remuneration at glance Page 184
Remuneration disclosures Page 190
How to use this report
Within the directors’ remuneration report, we have
usedcolour coding to denote different elements
ofremuneration, as follows:
Salary, pension, benefits (fixed remuneration)
Annual incentive
LTIP
We have also used the following icons to ease
navigation through this section and to show alignment
between remuneration, stakeholders and Group
strategic priorities.
Employees Investors Society
Regulators and
governments
Financial Strategic
Sustainability Personal
Directors’ remuneration report
Additional attendees
Group Chair; Group Chief Executive (GCE); Group Chief
Financial Officer (GCFO); Group Chief Risk Officer; Chief
Strategy and Talent Officer; Group Head, Human Resources;
Global Co-Head of Performance, Reward & Benefits; Group
Company Secretary; Group Head, Compliance, Financial
Crime and Conduct Risk; Group Chief Internal Auditor;
Chairofthe Board Risk Committee
Responsibilities
The Committee is responsible for setting the principles,
parameters and governance framework for the Group’s
remuneration policy and overseeing its implementation.
This includes determining the framework and policies for
theremuneration of the Group Chair, the executive directors
and other senior management considering our Fair Pay
Charter, wider workforce remuneration and alignment
withcultureand conduct.
Shirish Apte, Remuneration Committee Chair
Summary of 2025 remuneration decisions
• Group performance has been strong across both financial
and non-financial measures. Committee decisions
onremuneration reflect this.
• Discretionary incentives at $1,856 million for 2025,
areup10per cent on 2024. The average global salary
increase for 2026 is 2.6 per cent.
• Salary increase of 2 per cent for Bill Winters, GCE.
• Annual incentive of £3,402,000 for Bill, assessed
at84percent of the maximum.
• Projected performance outcome for the 2023–25
long-term incentive plan (LTIP) award of 88 per cent.
• 2025 single total figure of remuneration of £12,694,475 for
Bill and £1,407,114 for Diego De Giorgi, GCFO during 2025.
• Group remuneration structures have been reviewed in light
of Prudential Regulatory Authority (PRA) remuneration
reforms and to ensure the Group remains competitive
withglobal peers.
Committee composition and attendance
Committee member
Scheduled meeting
attendance
Shirish Apte 5/5
Jackie Hunt
1
5/5
Robin Lawther, CBE 5/5
Maria Ramos
2
2/2
David Tang
1
5/5
Dr Linda Yueh, CBE 5/5
1 Jackie and David were appointed as members of the Committee
on1 January 2025.
2 Maria stepped down from the Committee on 8 May 2025 when she was
appointed Group Chair.
The Committee’s terms of reference can be viewed at
sc.com/termsofreference
Standard Chartered | Annual Report 2025180
I am pleased to present the directors’ remuneration report
forthe year ended 31 December 2025. This report provides
anoverview of the Remuneration Committee’s work and
decision-making in determining the remuneration for
executive directors and the wider workforce.
A new directors’ remuneration policy, developed following the
removal of the variable pay cap which applied between 2014
and 2023, was approved by our shareholders at the 2025
AGM. The policy rebalanced total remuneration from fixed
pay towards performance-linked variable remuneration,
reinforcing the alignment between executive director reward,
execution of Group strategy and shareholder returns, as well
as enabling us to better compete for talent with our global
banking peers. Thenew policy operated in 2025 as intended.
The decisions taken by the Committee were based on
carefulconsideration of a broad range of factors, including
performance across the Group, the macroeconomic
environment and the need for fair and competitive reward
for our workforce.
The Group continued to deliver strong performance in 2025,
reflecting the successful and sustained execution of our
cross-border and affluent banking strategy. The continued
strategic focus on areas of our distinctive competitive
advantage helped us to achieve 14.7 per cent underlying
RoTE in 2025, surpassing our 13 per cent target a year earlier
than planned, and outperforming our peers with a share
pricegrowth of 84 per cent.
Underlying profitbefore tax is up 18 per cent and underlying
earnings pershare (229.7 cents) increased 37 per cent,
benefitting fromincreased profitability, and a reduction in
share count through the $2.8 billion share buybacks
announced in 2025.
The Group remains well capitalised and highly liquid with
astrong and diverse deposit base. The CET1 ratio of 14.1 per
cent is above our target range of 13 to 14 per cent, allowing
the Board to announce a further $1.5 billion share buyback
programme. This, along with the 65 per cent year-on-year
increase in the full-year dividend, takes total shareholder
distributions announced since the full-year 2023 results to
$9.1 billion, meeting our target one year earlier than committed.
Group-wide remuneration
Our Fair Pay Charter guides the design and delivery
ofreward. In 2025, we continued to implement initiatives
across the Group in line with the Charter, including a focused
HR advisory support service for people leaders to guide
themthrough critical moments in their leadership career,
anda newGroup share plan platform that will improve
operational efficiency and enhance the colleagueexperience.
We continue to promote continuous feedback, coaching
andtransparent performance discussions. To incentivise
andreward sustainable high performance, we are focused
ondifferentiating bonus outcomes towards exceptional
performance achieved in line with our values.
16.0%
14.0%
2021 2022 2023 2024 2025
8.0%
10.0%
12.0%
6.0%
4.0%
2.0%
0.0%
20.00
16.00
18.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Underlying RoTE
Share price (£)
Our performance in 2025
RoTE and share price performance
Profit before tax
$7,900m
18% (underlying basis)
Return on tangible equity (RoTE)
Underlying basis
14.7%
300bps
Reported basis
11.9%
220bps
Financial KPIs
Total shareholder return (TSR)
89.0%
2024: 53.5%
Operating income
$20,894m
6% (underlying basis)
Common Equity Tier 1 (CET1) ratio
14.1%
-12bps
Annual Report 2025 | Standard Chartered 181
Directors’ report
Directors’ remuneration report
Bill Winters
Diego De Giorgi
2,188 3,402 7,104
1,407
Total: 12,694
Total: 1,407
Annual incentive
LTIPSalary, pension, benefits
£000
Diversity, Equality and Inclusion
Our 2025 Diversity, Equality and Inclusion Impact
Report outlines the steps we are taking and the
progress we are making to create a culture where
our colleagues can thrive and generate positive
results for our clients and the communities that
weoperatein.
Read our 2025 Diversity, Equality and Inclusion
ImpactReport at sc.com/diversityfairpayreport
2025 discretionary annual incentives
The incentive pool outcome for 2025 reflects the strength
ofthe Group’s performance. In determining an appropriate
incentive pool, the Committee considers the Group scorecard
outcome alongside additional factors, such as the external
environment, market competitiveness and overall affordability.
The Committee also considers risk, control and conduct
matters, including ongoing investigations and matters
raisedby regulators.
Following its review of these factors, the Committee set
anannual incentive pool of $1,856 million, a 10 per cent
increase on 2024.
2026 salaries
The average global salary increase for 2026 is 2.6 per cent.
Increases have been focused on junior employees, our top
talent, and areas of strategic importance.
Executive director remuneration
The Committee approved the following outcome for
2025and is satisfied that the award is appropriate given
thestrong Group performance and Bill’s significant
personalcontributions.
2025 annual incentive
(£)
% of
maximum
Bill Winters 3,402,000 84%
Read more on pages 190 to 193
2023–25 LTIP award
The Group has delivered strong performance over the last
three years and this is reflected in the projected performance
outcome of 88 per cent, based on underlying RoTE of14.7per
cent, projected relative TSR ranking within the upper quartile
and above target performance against sustainability and
other strategic measures. The final relative TSR outcome will
be assessed three years from the award date, in March 2026.
The projected outcome is based on the three-month average
share price to 31 December 2025 and included in the single
total figure of remuneration forBill. Diego did not participate
in this LTIP award as it was granted prior to his appointment.
Award share
price
(£)
Valuation
share price
(£)
Projected
outcome
(£)
Bill Winters 7.398 15.95 7,103,714
Given the improvement in RoTE performance and relative
TSR growth, the Committee is satisfied that the projected
outcome reflects the positive performance over the
three-year period.
Bill’s 2023–25 LTIP award will be delivered, pro rata, over
thenext five years beginning in March 2026, aligning
remuneration outcomes with shareholder interests and
theGroup’s long-term performance.
Read more on pages 193 to 195
Single total figure of remuneration for 2025
The 2025 annual incentive and projected 2023–25 LTIP
performance outcome results in a 2025 single figure for
Billof£12,694,475. The single figure for Diego of £1,407,114
includes fixed remuneration only.
Read more on page 190
Change of GCFO
On 10 February 2026 we announced that Diego
DeGiorgi had decided to resign as GCFO, stepping
down as an executive director. In accordance with
the approved directors’ remuneration policy, he will
not receive a 2025 annual incentive award nor a
2026 LTIP award and his in-flight LTIP awards have
been forfeited. Hewill continue to receive his salary
and benefits until his final date of employment
withthe Bank. There are no other remuneration
payments in relation to his stepping down
asanexecutive director.
2025 annual incentive
The annual incentive for Bill is based on targets relating
tothe Group’s annual financial plan and strategic priorities,
as well as his personal performance contribution.
Standard Chartered | Annual Report 2025182
(All disclosures in the directors’ remuneration report are unaudited unless otherwise stated. Disclosures marked as audited should be considered audited in the context
of the financial statements as a whole.)
PRA remuneration reform
The PRA concluded their review into remuneration
reform and published updated regulations on
15 October 2025. We welcome this development,
which has a positive impact on the competitiveness
of UK-headquartered global banks. We have
reviewed our remuneration structures for material
risk takers in accordance with the revised regulations.
Impact on the operation of the remuneration
policy for executive directors
While the Committee is keen to ensure the Group
remains competitive with our global peers, in
considering how to apply the changes to our
executive directors we have also considered the
expectations of our shareholders.
Although we have refined our approach in certain
areas, the overall pay structure remains consistent
with the policy approved by shareholders at the
2025 AGM. The key decisions relate to the timeframe
for the release of incentive awards and are
summarised below.
Annual incentive awards
From 2025, 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 three years once an executive
director has met their shareholding requirement.
LTIP awards
For LTIP awards to be granted from 2026 onwards,
the entire performance-tested award will be
delivered five years after the grant date.
This structure continues to ensure that remuneration
does not incentivise inappropriate risk-taking, and
that decisions are made in the context of long-term,
sustainable performance. Executive directors will
continue to have strong long-term alignment with
shareholders through their incentives and
shareholdings, and a significant portion of their
remuneration will remain subject to malus and
clawback. Bill’s shareholding is currently significantly
above his requirement.
While the revised PRA regulations allow for
retrospective changes to the deferral schedule of
existing awards, the Committee determined that
existing LTIP awards for current and former executive
directors will continue to vest on their original
schedules, in line with commitments made to
shareholders when these awards were granted.
However, consistent with the new regulations, the
additional 12-month retention periods will be
removed from all existing LTIP awards.
2026 salary for Bill Winters
In line with the approved directors’ remuneration policy,
theCommittee considers annual salary increases for
executive directors taking account of any increase in scope
orresponsibility, market competitiveness and salary increases
across the Group. Having considered these factors, Bill’s
salarywill increase by 2 per cent to £1,530,000.
The Committee determined this increase is appropriate
toensure his remuneration opportunity remains competitive
and appropriately positioned with reference to our peer
group.
2026–28 LTIP award
Having considered 2025 performance, the Committee has
approved the following LTIP award for the period of 2026–28,
to be granted in March 2026.
Award value (£) % of salary
Bill Winters 7,350,000 490%
The LTIP award will be linked to the same measures as
the2025–27 LTIP awards. In line with policy, the scorecard
willcontinue to have 80 per cent weighting for financial
measures. However, the Committee determined a change
inweightings between RoTE and relative TSR was needed
toemphasise the importance of RoTE as our primary financial
metric. As such, the weighting for RoTE in the 2026-28 LTIP
scorecard is being increased from 40 per cent to 50 per cent.
Correspondingly, the weighting for relative TSR will decrease
from 40 per cent to 30 per cent. The remaining 20 per cent
will continue to be linked to our sustainability targets.
Read more on the 2026–28 LTIP performance targets
onpage 198
In the rest of this Committee report, we present the
disclosures required by regulations, as well as additional
information, to explain how remuneration for our executives
aligns with our strategy, shareholder interests and wider
workforce pay. In making remuneration decisions for 2025
and beyond, we have also been mindful of the experience
ofour wider stakeholder group.
I would like to thank my fellow Committee members for
theirwork in 2025, and our shareholders for their continued
engagement and support.
Shirish Apte
Remuneration Committee Chair
24 February 2026
Annual Report 2025 | Standard Chartered 183
Directors’ report
Directors’ remuneration report
Remuneration at a glance
Total remuneration
+= + + +
Fixed Variable
Executive director remuneration structure
Salary Pension Benefits LTIP
Annual
incentive
Read more about our directors’ remuneration policy on page 188
Read more about the annual incentive outcome on pages 190 to 193 and LTIP projected outcome on pages 193 to 195
How did we determine executive director variable remuneration outcomes in 2025?
2025
annual
incentive
outcome
84%
2023–25
LTIP
projected
outcome
88%
9% / 10%
50% / 60%
Financials
16% / 100%
16% / 20%
Strategic
9% / 10%
Personal
performance
Sustainability
Unachieved
opportunity
30% / 30%
Relative
TSR
30% / 30%
RoTE with
CET1 underpin
12% / 15%
Sustainability
12% / 100%
Unachieved
opportunity
16% / 25%
Strategic
Bill Winters
How did we pay our executive directors in 2025?
12,694
3,809
3,295
3,4022,188
4,6843,2481,4623,068
2024
2025
12,462
Value based on share price growthValue based on performance
£000
Diego De Giorgi
1,407
9581,811
{1},{4}{0}{7}
2024
2025
2,769
£000
Read more about the single total figure of remuneration on page 190
Standard Chartered | Annual Report 2025184
How will 2025 executive director remuneration be delivered?
Performance year Year 1 Year 2 Year 3 Year 4 Year 5
Salary Cash
Pension Cash
Annual incentive
1
Performance period
70% cash
30% shares
2
delivered pro rata
LTIP
1
Preliminary
performanceperiod
Performance period
Vesting/holding period
Delivered in shares
100% in year 5
1 Variable remuneration, including annual incentive and LTIP, is subject to clawback for up to 10 years from grant.
2 For executive directors who have met their shareholding requirement, the deferral required will decrease to 15 per cent.
Ensuring executive director remuneration isappropriate
Executive director remuneration is reviewed annually against internal and external measures to ensure fairness and alignment
with company performance and stakeholder interests.
Internal
• We maintain a consistent remuneration approach
forallemployees, in line with our Fair Pay Charter.
• The balance between fixed and variable remuneration
isgeared to provide a greater proportion of fixed
remuneration for more junior employees to give more
financial security.
• In comparison, for more senior employees, including the
executive directors, the variable remuneration opportunity
is larger, reflecting their ability to influence the Group’s
performance and, in turn, their remuneration outcome.
External
• We review executive director fixed and variable
remuneration opportunity against a peer group of
international banks to ensure that it remains appropriately
competitive. This peer group reflects both our global
footprint and where we compete for talent.
• The group includes two US banks for whom we have used
a direct report of the Group CEO, in recognition that this
isa more appropriate match for potential recruitment.
• Market data used in our benchmarking is based on the
latest published report and accounts. In addition, we
consider executive director remuneration against FTSE30
companies, with data sourced from an external provider.
For 2026 awards, at maximum opportunity, 87 per cent of Bill’s total remuneration would
bevariable and 61 per cent would be delivered in shares, creating strong alignment with
shareholder interests.
The 2026 maximum remuneration opportunity for Bill against our benchmarking peer group is shown below:
GCE
£8.9m £11.5m £17.0m
3rd quartile 2nd quartile Top quartileBottom quartile Maximum opportunity – current policy
Remuneration peer group: Barclays, Citi (Head ofMarkets), DBS, Deutsche Bank, HSBC, JPMorgan Chase (Co-CEO Commercial andInvestment Bank),
LloydsBankingGroup, OCBC, Société Générale, UBS, UOB.
Annual Report 2025 | Standard Chartered 185
Directors’ report
Directors’ remuneration report
Remuneration at a glance
How does executive director remuneration link to Group strategy and purpose?
Remuneration decisions made across the Group, including for our executive directors, align with our strategic priorities,
including our commitment to sustainable social and economic development. If outcomes are not consistent with our strategic
commitments, the Committee has the discretion to make adjustments.
Measure
2026
annual
incentive
2026–28
LTIP Alignment to strategic priorities and purpose
Financial
Income
Generating diverse income streams supports sustainable Group growth,
creates long-term value for shareholders and enables clients to achieve
their financial goals.
Cost-to-income
ratio
Effective cost management enhances our operational efficiency, ensuring
resources are optimally utilised to support strategic initiatives. This allows
usto invest in growth opportunities, deliver value to shareholders, all while
maintaining a sustainable and responsible business model.
RoTE with CET1
underpin
RoTE targets reflect our focus on maximising shareholder returns and
improving profitability through strategic investments and efficient capital
allocation, supporting broader economic development.
Relative TSR
Relative TSR as a measure demonstrates our commitment to
outperforming peers and delivering superior returns to shareholders,
aligning with our strategic objective of market leadership. This long-term
shareholder value isessential for maintaining trust and confidence in our
role as a key financialinstitution.
Strategic
Sustainability
Sustainability is a strategic focus area for us, as we strive to promote
inclusive growth and prosperity across our footprint. This supports our
purpose of fostering a better future by integrating ESG considerations into
our business practices, promoting long-term prosperity forall stakeholders.
In 2025, we met our Scope 1 and 2 emissions targets. As our Group
sustainability targets are longer term goals, these measures are captured
in our LTIP scorecard.
Strategic
Strategic measures incentivise achievement of KPIs relating to the
Group’slong-term goals, ensuring a focus on sustainable growth and
value creation. These ensure our operations and strategies are aligned
with our purpose of fostering commerce and prosperity in a responsible
and sustainable manner.
Personal
performance
Personal objectives for our executive directors reflect their personal impact
in delivering our strategic priorities and purpose.
Read more on our strategy and purpose on pages 3 and 9
Standard Chartered | Annual Report 2025186
Executive director remuneration and stakeholder experience
The Committee actively considers the perspectives of stakeholders when discussing and determining policies,
practices and outcomes related to executive director remuneration. It has the discretion to adjust remuneration
outcomes if considered appropriate.
Our stakeholders Monitoring how we perform
Investors
Remuneration outcomes reflect key financial and
non-financial performance delivered during the year.
These are based on stretching targets, which are
subject to robust assessment.
A significant portion of executive remuneration
ispaid in shares, and shareholding requirements
apply during and post-employment.
The Committee Chair regularly engages with
shareholders on remuneration matters.
Aggregate value of shares held by the GCE
£67.2m
% of incentives based on financial measures
Across the 2026 annual incentive and
2026–28 LTIPscorecards
73%
Employees
Executive remuneration is considered in the context
of the wider workforce.
Incentives for executive directors are based on a set
of measures that strongly align with those used to
determine discretionary incentives across the Group.
Measures to improve employee experience are
included in the executive director scorecard.
2026 average global salary increase
GCE 2026 salary increase: 2%
2.6%
% of executive director annual incentives
based on improving employee experience
2026 annual incentive scorecard
5%
Regulators and governments
Executive remuneration is set in line with
regulatoryrequirements.
The Committee Chair regularly meets with lead
regulators to discuss our remuneration approach
andoutcomes.
Remuneration outcomes take into account risk,
control and conduct considerations.
CET1 ratio
Minimum regulatory level: 10.3%
14.1%
Malus and clawback provision from
awardgrant
up to 10 years
Society and environment
Sustainability measures used within incentives are
aligned to our Sustainability Aspirations, reflecting
our commitment to sustainable social and
economicdevelopment.
The Committee tracks gender and ethnicity
paygaps, and actively monitors the actions being
taken to close them.
Proportion of executive remuneration
in2025 linked to climate-related
considerations
9%
2025 sustainable finance income
2025 annual incentive scorecard
$1.07bn
Read more about our stakeholders on pages 32 to 41
Annual Report 2025 | Standard Chartered 187
Directors’ report
Directors’ remuneration report
Remuneration at a glance
Summary of the directors’ remuneration policy
The 2025 directors’ remuneration policy was approved by shareholders at the AGM on 8 May 2025. A summary of the executive
director policy is below.
Read the full policy on pages 164 to 169 of the 2024 Annual Report and on our website at sc.com
Aligned with...
Fixed remuneration Executive directors
Management
Team
All UK
employees
Salary
Set to reflect the role, and the skills
and experience of the individual.
• A contractually fixed amount paid fully in cash.
• Reviewed annually.
Pension
To facilitate long-term
retirementsavings.
• 10% of salary.
Benefits
A competitive benefits package
tohelp executives carry out their
duties effectively.
• Core benefits include a benefits cash allowance, private
medical insurance and life insurance. Other benefits may
be selected through the Group’s flexible benefits plan.
• A car and driver or other car-related service is available
tothe GCE, which is a role-based provision due to
securityrequirements.
Variable remuneration Executive directors
Management
Team
All UK
employees
Annual incentive
Remuneration based on
measurable performance criteria
linked to the Group’s strategy
andassessed over a period
ofoneyear.
• Determined based on Group and personal performance
over the preceding financial year.
• GCE: up to 270% of salary.
• GCFO: up to 220% of salary.
• Delivered as a combination of cash and shares.
LTIP
Granted to senior executives
withthe ability to influence the
long-term performance of the
Group. Awards are performance
dependent based on measurable,
long-term criteria.
• Granted annually with Group and personal performance
considered in determining the award level.
• Performance outcome assessed over a forward-looking
period ofatleast three years.
• GCE: up to 490% of salary.
• GCFO: up to 370% of salary.
• Delivered fully in shares after a five-year deferral and
holding period.
Other remuneration Executive directors
Management
Team
All UK
employees
Sharesave
Provides an opportunity to invest
voluntarily in the Group.
• Enables all employees to share in the success of the Group
at a discounted share price.
Shareholding requirements
Provides alignment with the
interests of shareholders during
employment.
• GCE: 500% of salary.
• GCFO: 400% of salary.
• GCE and GCFO requirements remain in place for two years
after stepping down as an executive director.
Standard Chartered | Annual Report 2025188
Group-wide remuneration alignment
Remuneration and culture
Our performance and reward framework supports us in embedding a high-performance culture
and aligns with our principle that colleagues should share in the success of the Group.
• Remuneration decisions are guided by our Fair Pay Charter,
which sets out our fundamental principles around reward.
• Employee performance is assessed based on what is
achieved and how it is achieved in line with our valued
behaviours. Our remuneration structure and policies
ensurethat behaviours consistent with these values are
appropriately recognised and rewarded.
• The wider workforce and our executive directors
participate in continuous performance management and
feedback to ensure that performance is discussed and
assessed throughout the year. Our Performance and
Paysurvey shows that in 2025 there was an increase in
performance check-ins and giving and receiving feedback.
• To incentivise and reward sustainable high performance,
we are continuing to differentiate bonus outcomes with
afocus on rewarding exceptional performance achieved
in line with our valued behaviours.
• We are investing in wellbeing as a critical enabler
ofsustainable high performance.
• Colleagues recognise efforts to live our valued behaviours
by awarding each other recognition points, which are
redeemable against gifts.
• Employees are able to voluntarily invest in the Group
through Sharesave, which enables them to share in the
success of the Group at a discounted share price.
Our Fair Pay Charter
84%
of employees in our
Performance and Pay
survey feel they are
actively engaging and
taking steps to deliver
high performance.
Equal pay
We offer equal pay for equal work by market, and don’t
tolerate unlawful discrimination
Purpose-led
We provide a holistic set of rewards and benefits in line with
our valued behaviours
Competitive
opportunities
We are committed to paying colleagues competitively
Performance-driven
We value sustainable high performance and motivate,
recognise and reward the behaviours and outcomes that
support this
• The Group has a robust formal process for reviewing risk
and control matters and reflecting these in remuneration
outcomes at both an individual and collective level.
• The most significant risk and control matters are discussed
by the Remuneration Committee and, at year-end, these
are reviewed to determine any impact to Group incentives.
• The Board Risk Committee advises and assists the
Remuneration Committee in its assessment as to whether
remuneration frameworks and outcomes align with
effective risk management.
Our approach to risk and control
The determination of our remuneration policy and outcomes align with the Group’s risk
andcontrolframework.
• Long-term sustainable performance is supported through
the ability to make adjustments to variable remuneration
for risk, control and conduct behaviours, the deferral
ofvariable remuneration, and the ability to apply malus
and clawback where appropriate.
• Malus and clawback provisions apply for up to 10 years
from grant, in alignment with remuneration regulations
forsenior management. No malus or clawback provisions
were used during 2025.
Annual Report 2025 | Standard Chartered 189
Directors’ report
Directors’ remuneration report
The following disclosures provide further information and context on executive director and wider workforce remuneration
asrequired by the UK directors’ remuneration report regulations and the Stock Exchange of Hong Kong.
Directors’ remuneration in 2025
This section, which is subject to an advisory vote at the 2026 AGM, outlines the 2025 executive director remuneration
deliveredunder the 2025 shareholder-approved remuneration policy and the 2025 fees for the Group Chair and Independent
Non-Executive Directors (INEDs).
Single total figure of remuneration for executive directors (audited)
The 2025 single total figures of remuneration for Bill and Diego are detailed below. In light of the change in remuneration policy,
this is a transition year for single figure reporting purposes. A like-for-like comparison with 2024 is not possible asthe 2025
outcomes combine fixed pay and annual incentive awards made under the new directors’ remuneration policy witha projected
outcome for an LTIP award made under the previous policy.
Bill Winters Diego De Giorgi
1
£000 2025 2024 2025 2024
Salary 1,748 2,517 1,235 1,641
Pension 175 252 110 109
Benefits 265 299 62 61
Total fixed remuneration 2,188 3,068 1,407 1,811
Annual incentive award 3,402 1,462 – 958
LTIP outcome
Value based on performance 3,295 3,248 – –
Value based on share price growth 3,809 4,684 – –
Total variable remuneration 10,506 9,394 – 958
Single total figure of remuneration 12,694 12,462 1,407 2,769
1 Diego was appointed to the Board and as GCFO on 3 January 2024. The remuneration shown for 2024 is in respect of his services as GCFO during the year.
Diegostepped down from the Board on 10 February 2026.
Notes to the single total figure of remuneration table
Benefits • Bill receives a contribution towards his annual tax preparation due to the complexity of his
taxaffairs, partly due to Group business travel requirements.
• Bill has the use of a car and driver. This is a role-based provision given the executive role
andthe associated security and privacy requirements.
• 2025 figures relate to the 2024/25 UK tax year and 2024 figures relate to the 2023/24 UK taxyear.
Annual incentive award • Received in respect of 2025 and 2024.
Outcome of LTIP award • For 2025, projected values of the 2023–25 LTIP award, awarded in 2023.
• For 2024, values of the 2022–24 LTIP have been restated based on the actual share price
of£11.908 when the awards vested in March 2025.
Read more about the directors’ remuneration policy on page 188
Payments to former directors
There were no payments or pension contributions made to, orin respect of, past directors in the year in excess of the minimum
threshold of £50,000, set for this purpose.
Annual incentive awards
Annual incentive awards for executive directors are based onthe assessment of the executive director scorecard, which includes
an element of personal performance, in line with the current remuneration policy.
The Committee determined that Bill exhibited appropriate levels of conduct and met the gateway requirement tobe eligible
foran incentive award and that the scorecard outcome appropriately reflects performance in 2025. In addition, the Board Risk
Committee assessed Group risk appetite, control issues and conduct to ensure the annual incentive outcome was delivered
withappropriate risk and control management and determined no adjustment was required.
Diego has not been awarded a 2025 annual incentive.
Remuneration disclosures
Standard Chartered | Annual Report 2025190
2025 executive director scorecard outcome
Measure Weighting
Bill Winters
outcome
Financial 60% 50%
Strategic 30% 25%
Personal performance 10% 9%
Risk and control modifier 0%
Total 84%
Maximum annual incentive opportunity (£000) 4,050
Annual incentive outcome (£000) 3,402
Assessment of the 2025 scorecard – financial measures
Measure Weighting Threshold (0%) Maximum (100%) Achievement
Outcome
Underlying Income
1
($m) 20% 19,193 20,793 20,894 20%
Costs
2
($m) 20% 12,498 11,536 12,157 10%
Underlying RoTE
3
with a CET1
4
underpin 20% 10.6% 13.0% RoTE: 14.7%
CET1: 14.1%
20%
1 The Group’s reported income is adjusted for profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other
infrequent and/or exceptional transactions that are significant or material in the context of the Group’s normal business earnings for the period and items which
management and investors would ordinarily identify separately when assessing underlying performance period by period.
2 The Group’s reported costs are adjusted for bank levy exclusion, increase in performance related remuneration beyond what is budgeted for income being
delivered in line with budget, profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent
and/orexceptional transactions that are significant or material in the context of the Group’s normal business earnings for the period and items which
management and investors would ordinarily identify separately when assessing underlying performance period by period.
3 Underlying RoTE represents the ratio of the current year’s underlying profit attributable to ordinary shareholders plus fair value on other comprehensive income
equity movement relating to the Ventures segment to the weighted average tangible equity, being ordinary shareholders’ equity less the intangible assets for the
reporting period. Underlying RoTE normally excludes material regulatory fines and certain other adjustments but, for remuneration purposes, this would be subject
to review by the Committee.
4 The CET1 underpin was set at the higher of 13 per cent or the minimum regulatory level as at 31 December 2025. In addition, the Committee has the discretion
totake into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been
announced and implemented after the start of the performance period.
Assessment of the 2025 scorecard – strategic measures
Clients
Target Assessment
• Deliver cross-border income
growth in Corporate &
Investment Banking (CIB)
• Grow net new money from new
and existing affluent clients
• Increased CIB cross-border income to $7.6 billion (2024: $7.3 billion)
contributing to 66 per cent of total CIB income with growth across
strategic corridors.
• Record performance in client growth with the addition of 276,000
new-to-bank affluent customers and affluent net new money reaching
$52 billion (2024: $44 billion), driven by a focus on our international
andhigh-net-worth clients.
Weighting – 10% Outcome – 10%
Sustainability
Target Assessment
• Grow sustainable
financeincome
• Reduce emissions from our own
operations (Scope 1 and 2
emissions) to net zero by the
end of 2025
• $1.07 billion of sustainable finance income generated in 2025,
exceeding our target of at least $1 billion annual income by 2025.
• Scope 1 and 2 net zero emissions targets achieved.
Weighting – 10% Outcome – 9%
Annual Report 2025 | Standard Chartered 191
Directors’ report
Bill Winters
2025 was an excellent year for Bill, marked by strong and consistent progress in delivering the Group’s
multi-year strategy with solid financial performance and visionary leadership in key areas, recognised
internally and externally. Bill continued his significant work with key stakeholders, including investors,
clients,and leaders across the globe, while navigating regulatory expectations across multiple jurisdictions.
Hisstrategic leadership has been pivotal in defining and refining our growth strategy and key priorities,
andhis relentless focus has ensured execution of our key targets for the year. The progress made is evident
inthe strong performance reported for 2025 and the significantly improved share price. Bill’s leadership has
greatly enhanced Standard Chartered’s competitive position and has provided the platform for continued
progress as we enter 2026.
Assessment of the 2025 scorecard – personal performance
The Committee considers areas of responsibility together with progress against key objectives for the year and personal
contribution to the Group scorecard outcome.
Thiselement focuses on measures that reflect real personal impact, such as transformation of processes and improving the
culture within the Bank. Key achievements against Bill’s personal objectives are summarised below and on the next page.
Directors’ remuneration report
Bill – performance measures
Target Assessment
• Support and ensure
asmooth transition
oftheGroup Chair and
continue to develop
thesenior internal
succession pool
• Bill led the Group through major senior management changes in 2025,
includingthe smooth transition of Maria Ramos into her role as Group Chair
andthe successful onboarding of Management Team members.
• Ongoing organisation development has resulted in fewer, larger roles on
ourManagement Team, and the internal succession pipeline for senior roles
hasimproved.
Remuneration disclosures
Productivity and transformation
Target Assessment
• Execute on our most critical
transformation programmes
• Execute on our Fit for Growth
objectives to simplify,
standardise, and digitise
Standard Chartered
• Exceeded transformational change target with over 82%
ofprogrammes on track (versus target of 75%).
• Robust planning and resource allocation resulted in an overall
programme utilisation rate of 95.4%.
• Fit for Growth created efficiency saves, helping improve cost-to-income
ratio by 1 percentage point to 59%.
Weighting – 5% Outcome – 3.5%
People and culture
Target Assessment
• Delivery of our commitment
tohave 35 per cent females
insenior leadership positions,
ata global level, by 2025¹
• Improve our ‘culture of inclusion’
score (internal index)
• Our global senior women leadership representation at the end of 2025
was 33%, below target for 2025.
• Employee experience remains positive and stable, with our ‘culture of
inclusion’ score currently at 83%, 1 percentage point higher than 2024.
Weighting – 5% Outcome – 2.5%
1 Subject to local legal requirements.
Standard Chartered | Annual Report 2025192
Bill – performance measures
• Lead and support
delivery of the strategy
through relentless
execution under a strong
risk and controls
framework, to produce
higher and sustained
profitable growth
• Bill continued to develop and deliver on our growth strategy and has driven better
collaboration between the Group’s businesses, promoting strong growth with
increased synergies.
• The strategy is working, as evidenced by the Group’s strong operating
performance, customer satisfaction indicators and financial results, delivered
alongside outperformance in non-financial risk reduction across the Group.
• We have exceeded or met all our sustainability public commitments for2025,
with$1.07bn of sustainable finance income exceeding our target of at least
$1bnannual income by 2025, despite challenging market conditions.
• The Bank’s inaugural public mandatory Transition Plan was delivered to external
acclaim, including a positive acknowledgement from the UK regulator, and the
Bank was recognised for its leadership at Reuters Global Sustainability Awards 2025.
• Continue to advance
internal transformation,
ensuring the Bank
progresses and delivers
key change
management initiatives,
including Fit for Growth
• The transformation agenda continues to progress under Bill’s leadership,
withimproved processes and automation through the accelerated investment
ofFit for Growth.
• The Bank has delivered against the major platform changes within timelines,
including some of our major foundations that support Payments and Wealth
&Retail Banking (WRB).
• Promote and develop
aninnovation culture
throughout the Bank,
including in products
and services, increasing
connectivity between
Ventures and the rest
ofthe Bank
• Bill continued to provide thought leadership on the future of banking, which
allowed Standard Chartered to stay ahead of the curve on the deployment of
digital assets into financial markets, including paving the way on an accelerated
distribution model for credit risk, leading to key partnerships with non-banks.
• Bill continues to be a leading advocate for our Ventures business, which
complements the services offered by the traditional bank by addressing the
digital banking and lifestyle needs of clients.
• Bill championed our Group approach to artificial intelligence (AI) with 15 themes
identified for execution, including ‘MyWealth Advisor’ in Singapore and Hong Kong.
• Continue to develop and
embed an ambitious,
high-performance
culture, while retaining
the best of the Bank’s
traditional culture
• Bill continues to personally drive the high-performance agenda, supporting the
introduction of detailed calibration discussions across all aspects of performance
for the Group’s leadership cohort (including the Management Team and their
direct reports).
• Approximately 50% of open roles in 2025 were filled through internal hiring with
strong people leader satisfaction in the pipeline.
Weighting – 10% Outcome – 9%
2023–25 LTIP award
The LTIP values included in Bill’s single total figure of remuneration for 2025 are based on the award that will be subject tofinal
performance testing in March 2026. This award was granted in 2023 with a face value of 132 per cent of salary, toincentivise
theachievement of the Group’s priorities over the three-year period from 2023 to 2025. The award is share-based and subject
tothe performance targets set out below that were set when the award was granted andhavenot been adjusted since.
A conduct gateway requirement must be met before any awards vest. The Committee concluded that Bill exhibited appropriate
conduct during the performance period and, therefore, the conduct gateway was met. Diego did not participate in this award.
RoTE performance of 14.7 per cent was achieved, resulting in a maximum 30 per cent outcome, and relative TSR is projected
tobe ranked above upper quartile resulting in a projected maximum outcome of 30 per cent.
The Committee considered performance against the sustainability and strategic proof points set out in the table below and
determined that an outcome of 28 per cent was appropriate. Based on these assessments, the total projected performance
outcome is 88 per cent. The final relative TSR performance will be assessed in March 2026 and any change to the overall
outcome will be reported in the 2026 Annual Report.
Bill’s award will vest pro rata over 2026 to 2030. Malus and clawback provisions apply.
Annual Report 2025 | Standard Chartered 193
Directors’ report
2023–25 LTIP projected outcome for Bill
Award share price
(£)
Projected outcome
(%)
Valuation share price
(£)
Projected outcome
(£000)
Bill Winters 7.398 88% 15.95 7,104
Read more about the value attributable to share price growth on page 190
For the 2023 awards, the grant price was higher in comparison to the prior year’s award and the Committee therefore
considered that windfall gains were not applicable to this award.
Directors’ remuneration report
Projected performance outcome
Measure Weighting
Minimum
performance
(25% outcome)
Maximum
performance
(100% outcome)
Assessment of
achievement Outcome status
Projected
outcome
Underlying RoTE
1
in 2025 with
a CET1
2
underpin
30% 10% 12.5% RoTE: 14.7%
CET1: 14.1%
Confirmed 30%
Relative TSR performance
against peer group³
30% Median Upper
quartile
Currently
estimated
above upper
quartile
Projected 30%
Sustainability 15% Targets set for sustainability
measures linked to the
business strategy
Above target
performance
achieved
Confirmed 12%
Other strategic measures 25% Targets set for strategic
measures linked to the
business strategy
Above target
performance
achieved
Confirmed 16%
Total 2023–25 LTIP awards projected outcome 88%
1 Underlying RoTE represents the ratio of the current year’s underlying operating profit attributable to ordinary shareholders to the weighted average ordinary
shareholders’ equity less the average goodwill and intangibles for the reporting period. Underlying RoTE normally excludes regulatory fines and certain other
adjustments but, for remuneration purposes, such adjustments are subject to review by the Committee.
2 The CET1 underpin was set at the higher of 13 per cent or the minimum regulatory level as at 31 December 2025. In addition, the Committee has the discretion to
take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced
and implemented after the start of the performance period.
3 Final TSR performance will be assessed three years from the date of award in March 2026.
Remuneration disclosures
Non-financial performance assessment
Sustainability
Proof point Assessment
• Sustainable finance income
inexcess of $1bn by 2025
• $1.07 billion of sustainable finance income generated in 2025,
exceeding target of income in excess of $1bn by 2025.
• Delivery of the net zero
roadmap
• The Group has delivered on the net zero roadmap targets set for the
2023–25 timeline, to reach net zero by 2050.
• Contribution to the
advancement of the
sustainability ecosystem
• Progress has been achieved, supported by our five thematic Innovation
Hubs: Adaptation Finance, Blended Finance Programmes, Carbon
Markets & Finance, Nature Finance and Circular Economy, which focus
on emerging sustainability themes and drive innovation in the market
across sustainability.
Standard Chartered | Annual Report 2025194
Our Stands
Proof point Assessment
• Uplifting participation: increase
access to financial services and
lending to female entrepreneurs
and SMEs
• Targets were met in 2023. However, the original disclosed targets have
since been retired due to the change of strategic focus.
• Resetting globalisation: create
diversity and inclusion supplier
plans; bank an increased
proportion of our clients’
international and domestic
networks of suppliers and buyers
• Group market share is steady and improving in key dynamic markets
(>10%) and we have continued to identify and expand a diverse
supplier base.
Clients
Proof point Assessment
• Improve client satisfaction
rating evidenced in surveys and
internal benchmarks
• Strong performance across all three years based on strengthening of
CIB engagement and experience scores and WRB net promoter score.
• Deliver growth in affluent
wealth client activity
• Outperformance across all three years driven by the focus on
international clients strategy.
• Deliver network income
growthin CIB
• Strong network income performance driven by cross-border income,
including growth across strategic corridors.
• Increase China onshore and
offshore profit before tax in line
with externally disclosed targets
• Targets achieved by 2024 but mixed performance in 2025, resulting
inpartial outcome.
• Drive digital ventures growth
with meaningful value from
digital creations
• Customer base growth in all three years (2025: 57%, 2024: 13%,
2023: 25%) with outperformance in Mox and Trust Bank.
Enablers (ways of working and people)
Proof point Assessment
• Ways of working: organisational
effectiveness – reducing
complexity
• Exceeded transformational change targets of the number of
programmes on track, with 82% achieved versus target of 75%
infinalyear, following steady progress in the earlier years of the
performance period.
• People: improve employee
netpromoter score; increase
diversity; increase our culture
ofinclusion
• Female representation has increased over the three years to 33% versus
a starting point of 32.1% at the end of 2022, and although this is an
improvement, our annual targets have not been achieved resulting
inno outcome for this measure.
• Employee experience remains positive and stable, with our ‘culture
ofinclusion’ score currently at 83% (2024: 82%, 2023: 83%).
Risk and control
Proof point Assessment
• Reduction in non-financial risk,
evaluating the elevated residual
risks to allow for effective
prioritisation and give credit for
risk reduction
• We achieved or exceeded our non-financial risk reduction targets
in2023, 2024 and 2025.
• An assessment of the proportion
of audit issues identified by the
business/region/function
compared with total issues raised
• The proportion of audit issues identified compared to total issues
raisedwas below threshold for 2024 and 2025 resulting in no outcome
for this measure.
Annual Report 2025 | Standard Chartered 195
Directors’ report
Directors’ remuneration report
Service contracts for executive directors
Copies of the executive directors’ service contracts are available for inspection at the Group’s registered office. Bill’s contract
was updated effective 1 January 2020 to reflect the changes made following the implementation of the 2019 remuneration
policy and the change to pension contributions.
Bill Winters Diego De Giorgi
Date of employment contract 1 January 2020 1 September 2023
Notice period 12 months 6 months
Remuneration disclosuresRemuneration disclosures
Single figure of remuneration for the Group Chair and INEDs (audited)
The Group Chair and INEDs were paid in monthly instalments during the year. The INEDs are required to hold shares with a
nominal value of at least $1,000. The table below shows the fees and benefits received by the Group Chair and INEDs in 2025
and 2024. The INEDs’ 2025 benefit figures are in respect of the 2024/25 tax year and the 2024 benefit figures are in respect of
the 2023/24 tax year to provide consistency with the reporting of similar benefits in previous years and with those received by
executive directors.
Fees
£000
Benefits
1
£000
Total
£000
Shares
beneficially
held as at
31 December
2
2025 2024 2025 2024 2025 2024 2025
Group Chair
Maria Ramos
3
959 337 102 1 1,061 338 2,000
Dr José Viñals (former Group Chair)
4
759 1,293 54 57 813 1,350 45,000
Current INEDs
Shirish Apte 320 292 51 1 371 293 2,000
Jackie Hunt 285 188 5 0 290 188 2,000
Diane Jurgens 195 125 27 0 222 125 8,888
Robin Lawther, CBE 236 230 4 0 240 230 2,000
Lincoln Leong
5
259 43 7 0 266 43 13,369
Phil Rivett 303 252 0 0 303 252 2,128
David Tang 195 190 1 1 196 191 2,000
Dr Linda Yueh, CBE 249 242 9 10 258 252 2,000
1 The costs of benefits (and any associated tax costs) are paid by the Group. Due to developments in the application of tax rules and guidance, the Group has
updated its reporting approach in relation to benefits. This has resulted in an increased cost in 2025 compared with 2024.
2 The beneficial interests of the Group Chair and INEDs, and connected persons in the shares of the Company are set out above. These directors do not have any
non-beneficial interests in the Company’s shares. None of these directors used shares as collateral for any loans. No director had either: (1) an interest in the
Company’s preference shares or loan stocks of any subsidiary or associated undertaking of the Group; or (2) any corporate interests in the Company’s ordinary
shares. All figures are as at 31 December 2025 or on the retirement of a director unless otherwise stated.
3 Maria Ramos was appointed to Group Chair on 8 May 2025. She received a one-off relocation allowance, in line with our directors’ remuneration policy.
4 José Viñals retired from the Board on 8 May 2025 and we are no longer tracking his shareholding. His reported fee for 2025 of £759,000 is in respect of the period
1 January 2025 to 8 May 2025. He did not receive any compensation for loss of office as a director.
5 Lincoln Leong’s fee includes his role as an INED of Standard Chartered Bank (Hong Kong) Limited.
INEDs’ letters of appointment
The INEDs have letters of appointment, which are available for inspection at the Group’s registered office. INEDs are appointed
for a period of one year, unless terminated by either party with three months’ notice.
Read more about the INEDs’ appointments on page 131 to 134
2026 policy implementation for directors
Remuneration for the executive directors in 2026 will be in line with our directors’ remuneration policy, approved at the AGM
inMay 2025. Key elements include salary, pension, benefits, an annual incentive and an LTIP award.
Our policy is summarised on page 188 of this report, set out in full on pages 164 to 169 of the 2024 Annual Report andonour
website at sc.com
Standard Chartered | Annual Report 2025196
Executive director salaries
The Committee annually reviews the executive directors’ salaries, considering changes to the scope or responsibility ofthe
role,market alignment and Group-wide increases. Taking these factors into account, Bill’s salary will increase by 2 per cent
to£1,530,000 with effect from 1 April 2026. The Committee determined this salary increase is appropriate to ensure his
remuneration opportunity remains competitive and appropriately positioned with reference to our peer group.
£000
Bill Winters
2026 2025 % change
Salary 1,530 1,500 2
Pension 153 150 2
Total fixed pay 1,683 1,650 2
2026 executive director scorecard
The executive director scorecard reflects our strategic priorities. Targets are set annually by the Committee based on the
Group’sannual financial plans and strategic priorities. Targets and performance achieved will be disclosed retrospectively
inthe2026 Annual Report due to commercial sensitivity.
Financial measures make up 60 per cent of the scorecard. In 2025, we met our Scope 1 and 2 emissions targets. As our Group
sustainability targets are longer term goals, these measures have been captured in our LTIP scorecards. The Committee
assesses strategic and personal measures usingaquantitative and qualitative framework. The overall outcome will be subject
to a risk and control modifier, assessed overthe year.
Measure Weighting Target
2026 scorecard – financial measures
Reported income
1
20% Targets to be disclosed retrospectively
Cost-to-income ratio
2
20%
Reported RoTE
3
with CET1
underpin
4
20%
2026 scorecard – strategic measures
Key transformation programmes: Execution of our most critical transformation programmes
(including the Platinum programmes)
Weighting – 15%
Revenue per FTE: Group productivity measure calculated as revenue/average controllableFTE Weighting – 10%
Inclusion: Measured using the My Voice Inclusion Index, considering concepts of empathy,
respect, fairness, growth, career development opportunities, and work-life balance
Weighting – 5%
2026 scorecard – personal performance measures
Bill
• Continue to personally drive the execution of the growth strategy through our cross-border
capabilities and leading wealth management expertise
• Translate thought leadership into business leadership in the application of digital assets,
tokenisation and distributed ledger technology into our mainstream products and services
• Lead the creation of a clear and Bank-specific approach to the application of advanced data
strategies, including GenAI
• Continue to advance internal transformation, including process simplification and delivery
ofa strong finish on Fit for Growth
• Continue to develop senior internal succession pool, through increased focus on succession
planning and creating cross-functional leadership opportunities for senior talent
Weighting – 10%
1 The Group’s reported income as per the income statement.
2 The proportion of total operating expenses to total operating income.
3 Reported RoTE represents the ratio of the current year’s underlying profit attributable to ordinary shareholders to the weighted average tangible equity, being
ordinary shareholders’ equity less the intangible assets for the reporting period. The Committee reserve discretion to make exceptional adjustments to the reported
RoTE, where appropriate, for ‘one-off’ material events.
4 The CET1 underpin will be set at the higher of 13 per cent or the minimum regulatory level as at 31 December 2026. In addition, the Committee has the discretion to
take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced
and implemented after the start of the performance period.
Annual Report 2025 | Standard Chartered 197
Directors’ report
Directors’ remuneration report
Remuneration disclosures
LTIP award to be granted in 2026
Award value on grant (£) Award as % of salary Award value on vesting (£)
Bill Winters 7,350,000 490% To be determined based on the level of performance
achieved at the end of the three-year period against the
performance measures and the future share price.
From 2026, the Group’s RoTE disclosure and target setting will be on a reported basis, and the range for the 2026–28 LTIP has,
therefore, also been set on a reported basis (rather than underlying as previously). The reported RoTE range for the 2026–28
LTIP scorecard is 12 to 16 per cent. In the context of analyst expectations for our progress over the next three years, the
Committee is confident that the upper end is suitably stretching to incentivise outperformance, while the wider range has been
set in the context of the macroeconomic environment being more uncertain than it has been in recent years with an increasing
level of geopolitical risk. The Committee retain discretion to adjust reported RoTE figures in respect of material or exceptional
items on a case-by-case basis in line with standard market practice. The overall outcome will be subject to a risk and control
modifier, assessed over the performance period.
The peer group of companies selected for the relative TSR performance calculation are those with generally comparable
business activities, size or geographic spread to Standard Chartered or with which we compete for investor funds and talent.
The group is reviewed annually, prior to new LTIP awards being made, and remains unchanged for the 2026–28 awards.
TSR is measured in pound sterling for each company and the data is averaged over a three-month period at the start and end
of the three-year measurement period, which begins on 1 January of the year of grant.
Barclays Deutsche Bank OCBC
BNP Paribas HSBC Standard Bank
Citi ICICI UBS
China Merchants Bank JPMorgan Chase UOB
DBS Group
Deferral and holding periods for the award will be in line with PRA regulatory requirements and the UK Corporate Governance
Code. Subject to performance assessment, vesting will be 75 per cent in year three (subject to a two-year holding period) and
25per cent in year four (subject to a one-year holding period).
Financial measures for 2026–28 LTIP awards
Measure Weighting
Minimum
performance (25%)
Between minimum and
maximum performance
Maximum
performance (100%)
Reported RoTE
1
in 2028 with
aCET1
2
underpin
50% 12% Straight-line assessment between
minimum and maximum
16%
Relative TSR performance against
peergroup
30% Median Straight-line assessment between peer
companies positioned immediately
above and below theGroup
Upper quartile
1 Reported RoTE represents the ratio of the current year’s underlying profit attributable to ordinary shareholders to the weighted average tangible equity, being
ordinary shareholders’ equity less the intangible assets for the reporting period. The Committee reserve discretion to make exceptional adjustments to the reported
RoTE, where appropriate, for ‘one-off’ material events.
2 The CET1 underpin will be set at the higher of 13 per cent or the minimum regulatory level as at 31 December 2028. In addition, the Committee has the discretion to
take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced
and implemented after the start of the performance period.
Non-financial measures for 2026–28 LTIP awards
Sustainability
• Progress towards our 10-year $300 billion sustainable finance mobilisation target:
– Translates to a three-year target of $90 billion
– Progress will be assessed based on cumulative finance mobilised across the assessment period with 100%
vesting for $90 billion or above and 25% for $75 billion (0% if lower), assessed on a straight-line basis in between
• Net zero sector financed emissions decarbonisation:
– For the 12 sectors where the Group has set a 2030 interim net zero target, progress is measured as emission
reductions against the sectoral pathway
– A 100% outcome is achieved if at least 10 sectors are within their emissions reduction pathways or risk appetite
with proportionate reduction as the number of sectors achieving their targets falls to five sectors, at which
theminimum 25% outcome is achieved (with no vesting if fewer than five sectors have achieved the target)
Weighting – 20%
Read more about our net zero decarbonisation on page 90
Standard Chartered | Annual Report 2025198
INED fees
The Board regularly reviews the fee levels, considering market data and the duties, time commitment and contribution
expected for the PLC Board and, where appropriate, subsidiary boards. To ensure we can continue to attract a calibre
ofindividual as INEDs, the Board determined an increase in fees of 4 per cent to be appropriate. The revised fees are effective
from1 January 2026.
The Group Chair and the INEDs are eligible for benefits in line with the directors’ remuneration policy. Neither the Group Chair
orINEDs receive any performance-related remuneration.
Role Annual fee
Group Chair
1
£1,293,000
Senior Independent Director £48,000
Independent Non-Executive Director £123,000
Role Member fee Chair fee
Audit, Board Risk, Remuneration £43,000 £85,000
Culture and Sustainability £37,000 £75,000
Governance and Nomination £19,000 Nil
1 The Group Chair receives a standalone fee, which is inclusive of all services (including Board and Committee responsibilities). The Group does not currently utilise
the role of Deputy Chair and does not plan to do so.
Remuneration Committee
How did the Committee spend their time during their 2025 meetings?
28% 17%16%6%33%
Executive remuneration, policy and shareholder engagement
Senior management remuneration
Regulatory and governanceGroup-wide reward, the Fair Pay Charter and pay diversity
Business performance and risk assessment review
Read more on our workforce engagement framework and how the Committee understands the views of our workforce
inourCulture and Sustainability Committee report on pages 176 to 179 and in Our people and culture on pages 32 to 36
How did our shareholders vote?
For Against Withheld
Advisory vote on the 2024 remuneration report at the
2025AGM
1
1,941,855,272
98.87%
22,208,489
1.13%
787,019
Binding vote to approve the 2025 directors’ remuneration
policyat the 2025 AGM
2
1,607,844,267
81.86%
356,270,992
18.14%
735,521
1 If withheld votes are considered as part of the overall voting outcome distribution, 98.83 per cent of votes would have been ‘For’ the resolution.
2 If withheld votes are considered as part of the overall voting outcome distribution, 81.83 per cent of votes would have been ‘For’ the resolution.
At last year’s AGM, we proposed significant changes to our remuneration structure, responding to the removal of the variable
pay cap for UK banks. This represented a significant change and allowed the Committee to rebalance total remuneration,
fromfixed pay towards performance-linked variable remuneration, reinforcing alignment between executive director reward
and performance, as well enabling us to better compete for talent with our global banking peers.
Although we were pleased to see strong majority support for the policy, we recognise that a minority of shareholders were
unable to support the resolution.
The Committee consulted at length with shareholders during the development of the policy and prior to the AGM. While there
were a variety of views raised by shareholders, there was strong support across the shareholder register regarding the more
material aspects of the policy, including the changes in pay structure.
The Committee remains committed to an open and transparent dialogue with shareholders. We once again engaged with
shareholders in Q1 of 2026, and will continue this approach in future years.
What advice does the Committee receive?
In 2025, the Committee conducted a competitive tender process and Deloitte was appointed as the Committee’s remuneration
adviser in September, replacing PwC who had advised the Committee since 2013.
PwC and Deloitte are signatories to the voluntary remuneration consulting Code of Conduct. Deloitte provides other services
tothe Group including advice on restructuring, HR, tax, risk, treasury, tech and innovation, financial and corporate banking.
TheCommittee is satisfied the advice received was objective and independent and that no potential or actual conflict arose.
The total fees paid were £103,343 to PwC and £80,000 to Deloitte, which includes advice to the Committee relating to executive
directors’ remuneration and regulatory matters.
Annual Report 2025 | Standard Chartered 199
Directors’ report
Directors’ remuneration report
Remuneration disclosures
How effective was the Committee in 2025?
Action and decision Outcome and impact
Terms of reference review
• Conducted the annual review of the Committee’s terms of reference
inNovember 2025 and recommended minor changes to the Board
• The Board approved the minor amendments to the
Committee’s terms of reference in February 2026
• Ensured the Committee roles and responsibilities
remain appropriate and aligned with best practice
Committee performance review
• Reviewed progress against the 2025 Action Plan, which set out several
actions arising from the internally facilitated performance review
conducted in 2024
• A review of the Committee’s performance was facilitated by an
independent external reviewer in accordance with the UK Code
• The external reviewer’s report was reviewed and discussed by the
Board with all Committee members present
• Addressed all actions in the 2025 Action Plan
toenhance the performance of the Committee
• Developed a 2026 Action Plan to address the external
reviewer’s recommendations from the 2025
performance review
• Progress against the 2026 Action Plan will be
monitored during 2026
Read more on the review on pages 150 to 152
The relationship between the remuneration of the GCE and all UK employees
The 2025 ratios based on salary have decreased and ratios based on salary plus annual incentive have increased, reflecting
improved annual incentive performance outcomes and the rebalancing of GCE total remuneration from fixed pay towards
performance-linked variable remuneration under our new directors’ remuneration policy, which was approved by our
shareholders at the 2025 AGM.
The Committee considered the data for the three individuals identified at the quartiles for 2025 and believes it fairly reflects UK
employee pay. They were full-time employees and received remuneration in line with policy, without exceptional pay. Our LTIP
links remuneration to the achievement of long-term strategy and reinforces alignment with shareholder interests. Participation
is typically senior employees who directly influence the award’s performance targets. The identified quartile employees are not
LTIP participants.
The ratio will depend materially on yearly LTIP outcomes for the GCE and accordingly may fluctuate. The Committee also
discloses ratios using salary and salary plus annual incentive, as most UK employees do not typically receive LTIP awards.
Ratio of the total remuneration of the GCE to that of the UK lower quartile, median and upper quartile employees
GCE
2
UK employee
3
– £000 Pay ratio
Year Method
1
£000 P25 P50 P75 P25 P50 P75
2025 A 12,694 117 166 256 109:1 77:1 50:1
2024 A 12,462 113 164 247 110:1 76:1 51:1
2023 A 7,309 110 162 247 66:1 45:1 30:1
2022 A 6,408 95 145 228 67:1 44:1 28:1
2021 A 4,740 92 139 215 52:1 34:1 22:1
2020 A 3,926 84 128 199 46:1 31:1 20:1
2019 A 5,360 83 128 212 65:1 42:1 25:1
2018 A 6,287 78 124 208 80:1 51:1 30:1
2017 A 4,683 76 121 203 61:1 39:1 23:1
1 Pay ratios are calculated using Option A methodology, aligned with investor guidance.
2 GCE pay is the single total figure of remuneration for 2025 and is restated for 2024 to reflect the final 2022–24 LTIP performance outcome assessed in March 2025.
The2025 ratio will be restated in the 2026 Annual Report to reflect the final 2023–25 LTIP performance outcome for eligible employees and the GCE.
3 Employee pay data is based on FTE UK employees as at 31 December for the relevant year, excluding leavers, joiners and transfers in/out of the UK during the year
to ensure a like-for-like comparison. Total remuneration is calculated in line with the single figure methodology and insured benefits data is based on notional
premiums. No other adjustments or assumptions have been made.
The GCFO and Group Chief Risk Officer regularly update the Committee on finance and risk matters and the Committee also
receives input from the Board Risk Committee, Culture and Sustainability Committee and Chair of the Board Audit Committee
on relevant matters.
The Committee manages conflicts of interest when receiving views from senior individuals on remuneration proposals and
noindividual is involved in deciding their own pay.
Standard Chartered | Annual Report 2025200
Additional ratios of pay based on salary and salary plus annual incentive
GCE UK employee – £000 Pay ratio
Salary £000 P25 P50 P75 P25 P50 P75
2025 1,748 79 116 162 22:1 15:1 11:1
2024 2,517 85 116 156 30:1 22:1 16:1
2023 2,496 78 103 149 32:1 24:1 17:1
2022 2,418 72 87 138 34:1 28:1 18:1
2021 2,370 68 100 136 35:1 24:1 17:1
2020 2,370 63 93 116 38:1 25:1 20:1
2019 2,353 65 90 128 36:1 26:1 18:1
2018 2,300 59 86 142 39:1 27:1 16:1
2017 2,300 55 81 124 42:1 28:1 19:1
GCE UK employee – £000 Pay ratio
Salary plus annual incentive £000 P25 P50 P75 P25 P50 P75
2025 5,150 102 142 227 51:1 36:1 23:1
2024 3,979 98 141 217 41:1 28:1 18:1
2023 3,958 96 138 220 41:1 29:1 18:1
2022 3,917 84 123 202 47:1 32:1 19:1
2021 3,559 79 122 186 45:1 29:1 19:1
2020 2,756 74 104 175 37:1 26:1 16:1
2019 3,604 73 109 187 49:1 33:1 19:1
2018 3,691 72 105 183 52:1 35:1 20:1
2017 3,978 69 103 182 58:1 39:1 22:1
180
160
100
120
140
80
60
40
20
0
14
10
12
8
6
4
2
0
Comparator median FTSE 100 Standard Chartered
Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25
Value of £100 invested on 31 December 2016
GCE total remuneration (£m)
Group performance versus the GCE’s remuneration
This graph shows the Group’s TSR performance on a cumulative basis over the past 10 years alongside that of the FTSE 100 and
peer banks. The graph also shows GCE remuneration based on the single figure over the 10 years ended 31 December 2025 for
comparison. The FTSE 100 provides a broad comparison group against which shareholders may measure their relativereturns.
The table below shows the single total figure of remuneration for the GCE since 2016 and the variable remuneration delivered
asa percentage of maximum opportunity.
BW BW BW BW BW BW BW BW BW BW
Salary 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Single total figure of remuneration
1
£000 3,392 4,683 6,287 5,360 3,926 4,740 6,408 7,309 12,462 12,694
Annual incentive as percentage
ofmaximum opportunity 45% 76% 63% 55% 18.5% 57% 70% 66% 66% 84%
Vesting of LTIP awards as apercentage
of maximum
2
– – 27% 38% 26% 23% 37% 57% 88% 88%
1 2024 single figure has been restated to reflect actual performance outcome and share price when the 2022–24 LTIP award started being released in March 2025.
2 2025 projected LTIP outcome of 88 per cent is subject to change until the final assessment of TSR performance in March 2026.
Annual Report 2025 | Standard Chartered 201
Directors’ report
Directors’ remuneration report
Remuneration disclosures
Percentage change in remuneration levels
This table below compares changes in remuneration of directors with UK employees. The same employee population is used
forthe GCE pay ratio disclosure on pages 200 and 201. Employee remuneration is calculated on a mean basis for consistency
year-on-year.
Salary % change Taxable benefits % change
1
Annual incentive % change
2025 2024 2023 2022 2021 2025 2024 2023 2022 2021 2025 2024 2023 2022 2021
GCE Bill Winters (30.5) 0.8 3.2 2.0 0.0 (11.4) 3.9 (3.0) 79.8 (26.5) 132.7 0.0 (2.5) 26.1 208.1
GCFO Diego De Giorgi
2
(24.7) – – – – 2.8 – – – – – – – – –
Workforce average
FTEUKemployee 0.6 2.9 10.4 3.3 3.1 (1.2) (1.2) 2.2 (7.0) (2.0) 2.9 11.5 0.8 14.3 38.2
Group Chair Maria
Ramos
3
184.7 1.5 38.8 25.9 – 11,232.8 100.0 0.0 0.0 –
Not applicable as these
individuals are not eligible for
annual incentive awards.
Dr José Viñals
(former Group Chair)
3
– 0.0 3.4 0.0 0.0 – (17.5) 53.2 170.2 (61.5)
Shirish Apte 9.6 1.7 – – – 5,606.5 – – – –
Jackie Hunt 51.8 1.5 – – – – – – – –
Diane Jurgens – – – – – – – – – –
Robin Lawther, CBE 2.6 2.2 – – – – – – – –
Lincoln Leong – – – – – – – – – –
Phil Rivett 20.3 2.0 5.7 3.9 – 0.0 0.0 0.0 0.0 –
David Tang 2.6 2.7 8.8 0.0 18.3 (35.6) 55.3 0.0 0.0 (82.3)
Dr Linda Yueh, CBE 2.9 10.4 – – – (12.1) – – – –
1 Due to developments in the application of tax rules and guidance, the Group has updated its reporting approach in relation to benefits. This has resulted
inanincreased cost in 2025 compared with 2024.
2 On 10 February 2026, Diego De Giorgi stepped down from the Board.
3 In 2025, on 8 May José Viñals retired from the Board and Maria Ramos was appointed as Group Chair.
Read more about what the GCE, GCFO, Group Chair and INEDs’ data changes relate to on pages 190 and 196
Scheme interests awarded, exercised and lapsed during the year
Employees, including executive directors, are not permitted to engage in any personal investment strategies with regards
totheir Company shares, including hedging against the share price of Company shares.
Scheme interests awarded during 2025
Awards were granted to Bill and Diego under the 2025–27 LTIP on 12 May 2025. Performance measures apply to these awards.
Type of interest awarded
Basis on which
award is made
Number of
shares
1
Award face
value (£)
2
Award outcome achievable
for minimum performance Performance period end
3
Bill Winters LTIP – conditional rights % of salary 816,213 8,713,074 25% 31 December 2027
Diego De Giorgi
4
LTIP – conditional rights % of salary 451,971 4,824,790 25% 31 December 2027
1 The number of shares awarded in respect of the LTIP took account of the lack of dividend equivalents (calculated by reference to market consensus dividend yield)
such that the overall market value of the award is maintained.
2 The award face value is calculated by multiplying the number of shares awarded by the share award price of £10.675.
3 Details of the LTIP performance measures can be found on page 205.
4 Following the announcement of Diego’s resignation on 10 February 2026, this award has been forfeited.
Executive directors’ shareholdings and share interests including share awards (audited)
Shares that count towards the executive director shareholding requirements are beneficially owned shares and unvested share
awards for which performance conditions have been satisfied (on a net of tax basis).
As at 31 December 2025, Bill significantly exceeded his shareholding requirement. In addition to shares acquired from
incentiveplans and the share element of salary, he has voluntarily purchased shares equivalent to 377 per cent of his salary
fromhis own funds.
£9.1m
£7.5m
£4.4m
£1.8m
£58.1m
Diego De Giorgi
Bill Winters
Share held beneficially Unvested share awards not subject to performance measures (net of tax) Shareholding requirement
Standard Chartered | Annual Report 2025202
Shares held
beneficially
1,2,3
Unvested share
awards not subject
to performance
measures
(net of tax)
4
Total shares
counting towards
shareholding
requirement
Shareholding
requirement Salary
Value of shares
counting towards
shareholding
requirement as a
percentage of salary
Unvested share
awards subject to
performance
measures
(before tax)
Bill Winters 3,190,874 497,989 3,688,863 500% salary £1,500,000 4,481% 1,938,636
Diego De Giorgi 101,535 – 101,535 400% salary £1,100,000 168% 856,033
1 All figures are as at 31 December 2025 unless stated otherwise. The closing share price on 31 December 2025 was £18.220. No director had either: (1) an interest
inStandard Chartered PLC’s preference shares or loan stocks of any subsidiary or associated undertaking of the Group; or (2) any corporate interests in Standard
Chartered PLC’s ordinary shares.
2 The beneficial interests of directors and connected persons in the ordinary shares of the Company are set out above. The executive directors do not have any
non-beneficial interest in the Company’s shares. Neither of the executive directors used ordinary shares as collateral for any loans.
3 The shares held beneficially include shares awarded to deliver the share element of executive directors’ salary prior to 1 April 2025, when part of salary was delivered
in shares. Since this date, all salary is delivered in cash.
4 In March 2025, the final assessment of the 2022–24 LTIP award resulted in an 88 per cent outcome due to achievement against RoTE, relative TSR and strategic
measures. The award is no longer subject to performance measures and is included here. The remaining 12 per cent of the award lapsed.
5 As Bill and Diego are UK taxpayers, 47 per cent tax is assumed to apply to other unvested share awards (marginal combined PAYE rate of income tax at 45 per cent
and employee National Insurance contributions at 2 per cent) – rates may change.
Andy Halford retired from the Company on 31 August 2024 and is subject to a two-year post-employment shareholding
requirement. This is being monitored and, as at 31 December 2025, he is continuing to significantly exceed this requirement.
Change in interests during the period 1 January to 31 December 2025 (audited)
Bill Winters
1
Date of grant
Share award
price (£)
As at
1 January Awarded
2
Vested
3
Lapsed
As at
31 December
Performance
period end Vesting date
2018–20 LTIP 9 Mar 2018 7.782 28,179 – 28,179 – – 9 Mar 2021 9 Mar 2025
2019–21 LTIP 11 Mar 2019 6.105 30,604 – 30,604 – – 11 Mar 2022 11 Mar 2025
30,605 – – – 30,605 11 Mar 2026
2020–22 LTIP 9 Mar 2020 5.196 59,282 – 59,282 – – 9 Mar 2023 9 Mar 2025
59,282 – – – 59,282 9 Mar 2026
59,282 – – – 59,282 9 Mar 2027
2021–23 LTIP 15 Mar 2021 4.901 85,853 – 85,853 – – 15 Mar 2024 15 Mar 2025
85,853 – – – 85,853 15 Mar 2026
85,853 – – – 85,853 15 Mar 2027
85,853 – – – 85,853 15 Mar 2028
2022–24 LTIP 14 Mar 2022 4.876 151,386 – 133,219 18,167 – 14 Mar 2025 14 Mar 2025
151,386 – – 18,167 133,219 14 Mar 2026
151,386 – – 18,167 133,219 14 Mar 2027
151,386 – – 18,167 133,219 14 Mar 2028
151,388 – – 18,167 133,221 14 Mar 2029
2023–25 LTIP 13 Mar 2023 7.398 101,209 – – – 101,209 13 Mar 2026 13 Mar 2026
101,209 – – – 101,209 13 Mar 2027
101,209 – – – 101,209 13 Mar 2028
101,209 – – – 101,209 13 Mar 2029
101,209 – – – 101,209 13 Mar 2030
2024–26 LTIP 12 Mar 2024 6.600 123,275 – – – 123,275 12 Mar 2027 12 Mar 2027
123,275 – – – 123,275 12 Mar 2028
123,275 – – – 123,275 12 Mar 2029
123,275 – – – 123,275 12 Mar 2030
123,278 – – – 123,278 12 Mar 2031
2025–27 LTIP 12 May 2025 10.675 – 163,242 – – 163,242 31 Dec 2027 12 May 2028
– 163,242 – – 163,242 12 May 2029
– 163,242 – – 163,242 12 May 2030
– 163,242 – – 163,242 12 May 2031
– 163,245 – – 163,245 12 May 2032
Annual Report 2025 | Standard Chartered 203
Directors’ report
Directors’ remuneration report
Remuneration disclosures
Diego De Giorgi
1,5
Date of grant
Share award
price (£)
As at
1 January Awarded
2
Vested Lapsed
As at 31
December
Performance
period end Vesting date
2024–26 LTIP 12 Mar 2024 6.600 80,812 – – – 80,812 12 Mar 2027 12 Mar 2027
80,812 – – – 80,812 12 Mar 2028
80,812 – – – 80,812 12 Mar 2029
80,812 – – – 80,812 12 Mar 2030
80,814 – – – 80,814 12 Mar 2031
2025–27 LTIP 12 May 2025 10.675 – 90,394 – – 90,394 31 Dec 2027 12 May 2028
– 90,394 – – 90,394 12 May 2029
– 90,394 – – 90,394 12 May 2030
– 90,394 – – 90,394 12 May 2031
– 90,395 – – 90,395 12 May 2032
1 The unvested LTIP awards held by Bill and Diego are conditional rights. They do not have to pay towards these awards. Under these awards, shares are delivered
on vesting or as soon as practicable thereafter.
2 For the 2025–27 LTIP awards granted to Bill and Diego on 12 May 2025, the values granted were: Bill: £7.4 million; Diego: £4.1 million. The number of shares awarded
in respect of the LTIP took into account the lack of dividend equivalents (calculated by reference to market consensus dividend yield) such that the overall value
ofthe award was maintained. Performance measures apply to 2025–27 LTIP awards. The closing price on the day before grant was £10.675.
3 Shares (before tax) were delivered to Bill from the vesting element of LTIP awards. The closing share price on the day before the shares were delivered were:
• 10 March 2025: Shares in respect of the 2018–20 LTIP and 2020–22 LTIP. Previous day closing share price: £12.150.
• 11 March 2025: Shares in respect of the 2019–21 LTIP. Previous day closing share price: £11.705.
• 17 March 2025: Shares in respect of the 2021–23 LTIP. Previous day closing share price: £11.765.
• 19 March 2025: Shares in respect of the 2022–24 LTIP. Previous day closing share price: £12.060.
4 The weighted average closing price for Bill’s awards that vested during the period was £11.976.
5 Following the announcement of Diego’s resignation on 10 February 2026, these awards have been forfeited.
As at 31 December 2025, none of the directors had registered an interest or short position in the shares, underlying shares
ordebentures of the Company or any of its associated corporations that was required to be recorded pursuant to Section
352ofthe Hong Kong Securities and Futures Ordinance, or as otherwise notified to the Company and the Hong Kong Stock
Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers.
Read more on the details of share plan dilution limits onpages 406 to 407
Historical LTIP awards
The current projected outcome for in-flight LTIP awards from the 2024 and 2025 performance years based on current
performance as at 31 December 2025 are set out in the tables below. In the context of the change to using reported RoTE as the
Group’s main metric for target setting, we are reviewing how we will measure progress against the existing in-flight LTIP ranges,
and will provide an update in the 2026 Annual Report.
Current position on the 2024–26 LTIP award: projected partial performance outcome
Measure Weighting Minimum (25%) Maximum (100%)
Assessment as at
31 December 2025
Underlying RoTE
1
in 2026 with a
CET1
2
underpin
30% 10% 13% RoTE above maximum:
indicative full outcome
Relative TSR performance against
peer group
30% Median Upper quartile TSR positioned above
upper quartile: indicative
full outcome
Sustainability 25% Targets set for sustainability measures
linked to the business strategy
Performance tracking
ontarget: indicative
partial outcome
Other strategic measures 15% Targets set for strategic measures linked
to the business strategy
Performance tracking
ontarget: indicative
partial outcome
1 Underlying RoTE represents the ratio of the current year’s underlying operating profit attributable to ordinary shareholders to the weighted average ordinary
shareholders’ equity less the average goodwill and intangibles for the reporting period. Underlying RoTE normally excludes regulatory fines and certain other
adjustments but, for remuneration purposes, such adjustments are subject to review by the Committee.
2 The CET1 underpin was set at the higher of 13 per cent or the minimum regulatory level as at 31 December 2026. In addition, the Committee has the discretion to
take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced
and implemented after the start of the performance period, for example in relation to Basel IV.
Standard Chartered | Annual Report 2025204
Current position on the 2025–27 LTIP award: projected partial performance outcome
Measure Weighting Minimum (25%) Maximum (100%)
Assessment as at
31 December 2025
Underlying RoTE
1
in 2027 with a
CET1
2
underpin
40% 11.5% 14.5% RoTE above maximum:
indicative full outcome
Relative TSR performance against
peer group
40% Median Upper quartile TSR positioned above
upper quartile: indicative
full outcome
Sustainability 20% Targets set for sustainability measures
linked to the business strategy
Performance tracking
above target: indicative
partial outcome
1 Underlying RoTE represents the ratio of the current year’s underlying profit attributable to ordinary shareholders plus fair value on other comprehensive income
equity movement relating to Ventures segment to the weighted average tangible equity, being ordinary shareholders’ equity less the intangible assets for the
reporting period. Underlying RoTE normally excludes material regulatory fines and certain other adjustments but, for remuneration purposes, this would be subject
to review by the Committee.
2 The CET1 underpin was set at the higher of 13 per cent or the minimum regulatory level as at 31 December 2027. In addition, the Committee has the discretion to
take into account at the end of the performance period any changes in regulatory capital and risk-weighted asset requirements that might have been announced
and implemented after the start of the performance period, for example in relation to Basel IV.
The Committee assesses the outcome value of LTIP awards on vesting and has the flexibility to adjust if the formulaic outcome
is not considered to be an appropriate reflection of the performance achieved and to avoid windfall gains.
Allocation of the Group’s earnings between stakeholders
When considering Group variable remuneration, the Committee takes account of shareholders’ concerns about relative
expenditure on pay and determines the allocation of earnings to expenditure on remuneration carefully and has approached
this allocation in a disciplined way. The amount of corporate tax, including the bank levy, is included in the chart because
itisasignificant payment and illustrates the Group’s contribution through the tax system.
1,918 3,754
8,510
9,109
$million
3,2802,062
2024
2025
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
Staff costs Corporate taxation including levy Paid to shareholders in dividends and buybacks
Approach to risk and control
What and how? When?
• The Group annual scorecard and LTIP performance
criteria include risk and control measures
• In addition, the Committee carries out a detailed review
of all risk, control and conduct matters including ongoing
investigations and any matters raised by regulators and
may use its discretion to adjust remuneration to reflect
matters not adequately captured by the scorecards
• All variable remuneration is subject to risk adjustment
provisions (through the reduction or forfeiture of the
valueof current year variable remuneration or the
application of malus or clawback to unpaid or paid
variable remuneration as appropriate, at the
Committee’sdiscretion)
Adjustments would be applied for issues including, but not
limited to:
• Where employee conduct and/or performance falls short
of the expected standards (including failure to meet
appropriate standards of fitness and propriety)
• Material failure of risk management at a Group, business
area, division and/or business unit level
• Material restatement of the Group’s financials or material
breach of regulatory guidelines
Read our Pillar 3 remuneration disclosures in our 2025 Pillar 3 Report at sc.com/financial-results
Annual Report 2025 | Standard Chartered 205
Directors’ report
Directors’ remuneration report
Remuneration disclosures
Remuneration of the five highest-paid individuals and senior management for the year
to31 December 2025
Components of remuneration
Five highest paid
1
$000
Senior
management
2
$000
Salary, cash allowances and benefits in kind 13,473 25,570
Pension contributions 681 1,463
Variable remuneration awards paid or receivable 50,385 74,271
Payments made on appointment 7,319 7,319
Remuneration for loss of office (contractual or other) – 94
Other – –
Total 71,858 108,717
Total HKD equivalent 560,384 847,843
1 The five highest paid individuals includes Bill Winters.
2 Senior management comprises the executive directors and the members of the Management Team at any point during 2025.
Share award movements for the five highest-paid individuals for the year to 31 December 2025
1
LTIP
2
Deferred
shares
2
Sharesave
Weighted
average
Sharesave
exercise price
(£)
Outstanding at 1 January 2025 3,246,134 3,090,430 3,649 5.01
Granted
3,4
1,168,088 881,757 – –
Lapsed (114,210) – – –
Vested/exercised (395,824) (861,411) – –
Outstanding at 31 December 2025 3,904,188 3,110,776 3,649 5.01
Exercisable at 31 December 2025 – – – –
Range of exercise prices (£) – – – 4.23 – 6.10
1 The five highest paid individuals includes Bill Winters.
2 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards.
3 1,168,088 (LTIP) granted on 12 May 2025; 398,549 (Deferred shares) granted on 14 March 2025; 483,208 (Deferred shares) granted on 24 September 2025.
4 Deferred shares were granted at a share price of £11.580 (14 March 2025) and £14.545 (24 September 2025); LTIP shares were granted at a share price of £10.675,
the closing price on the last trading day preceding the grant date. The vesting period for these awards ranges from 1-4 /7years.
Read more about the awards for Bill Winters on page 203
Read more about the IFRS2 accounting standard adopted for share awards on page 403
Read more about the share awards and options for all employees on page 407
The table below shows the emoluments of: (1) the five highest-paid employees; and (2) senior management for the year ended
31 December 2025.
Number of employees
Remuneration band HKD Remuneration band USD equivalent Five highest-paid Senior management
1
3,000,001-3,500,000 384,685-448,799 – 1
14,000,001-14,500,000 1,795,194-1,859,308 – 1
29,000,001-29,500,000 3,718,616-3,782,730 – 1
31,500,001-32,000,000 4,039,187-4,103,300 – 1
32,000,001-32,500,000 4,103,301-4,167,415 – 1
41,000,001-41,500,000 5,257,354-5,321,468 – 2
54,000,001-54,500,000 6,924,320-6,988,434 – 2
55,500,001-56,000,000 7,116,662-7,180,776 – 1
69,500,001-70,000,000 8,911,856-8,975,970 1 –
73,500,001-74,000,000 9,424,769-9,488,883 1 1
78,500,001-79,000,000 10,065,909-10,130,023 1 1
132,500,001-133,000,000 16,990,229-17,054,343 1 1
148,000,001-148,500,000 18,977,765-19,041,879 1 1
Total 5 14
1 Senior management comprises of the executive directors and the members of the Management Team at any point during 2025.
Standard Chartered | Annual Report 2025206
Other statutory and
regulatorydisclosures
This section sets out additional information required to be included in the Directors’ report. Where set out elsewhere in the
report, the information in the tables below is incorporated by reference. The Group operates in the UK and overseas through
several subsidiaries, branches and offices. Information about the principal activities of the Group is set out in the Strategic
report on pages 1 to 52.
Disclosures required pursuant to Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008
Engagement with clients,
suppliers and others
Pages 37 to 41 of the Strategic report
Engagement with employees Pages 32 to 37 and 39 of the Strategic report
Post balance sheet events Note 37 to the financial statements
Directors’ interests Page 196 of the Directors’ remuneration report. As at 17 February 2026, there had been
nochanges to those interests inrelation to directors remaining in office at that date.
Future developments in the
Group’s business
Pages 1 to 52 of the Strategic report
Debt and equity capital Notes 22 and 28 to the financial statements in addition topages 209 to 210 of this
Directors’ report
Loan capital Notes 22 and 27 to the financial statements
Share buyback Note 28 to the financial statements in addition to pages 209 to 210 ofthis Directors’ report
Financial instruments Notes 13 and 14 to the financial statements
The Group’s 2025 financial statements have been prepared in accordance with the principles of the UK Finance Disclosure Code
for Financial Reporting Disclosure.
Disclosures required under UK Listing Rule 6.6.1
UKLR 6.6.1 (11-12) (Waiver of dividends) See Note 28 to the financial statements
UKLR 6.6.1 (1) (2) (3-10) (13) N/A
Application of the principles of the 2024 UK Corporate Governance Code
Page
Board leadership and company purpose
Governance structure 140
Board of directors 130 – 134
Who we are and what we do 2 – 3
Our strategy 9
Integrity, conduct and ethics 118 – 121
Group Code of Conduct and Ethics 215
Key performance indicators 12 – 13
Enterprise Risk Management Framework 220 – 225
Stakeholder engagement and
Section 172 statement
37 – 41
Board engagement with our shareholders 146 – 147
Board activities 141 – 145
Employee engagement and
Employmentpolicies
213 – 215
Culture 148
Division of responsibilities
Governance structure 140
Roles and responsibilities 149
Independence and time commitment 149
External directorships and other
businessinterests
149
Page
Composition, succession and evaluation
Composition, succession and evaluation 150
Governance and Nomination
Committeereport
155 – 160
Board and committee meeting attendance 138, 155, 161,
170, 176 and
180
Board of directors 130 – 134
Annual performance review 150 – 152
Director training and development 153 – 154
Audit, risk and internal control
Audit Committee report 161 – 169
Non-audit services 165
Statement of directors’ responsibilities 219
Fair, balanced and understandable 219
Risk review 218 – 302
Viability statement 51 – 52
Remuneration
Directors’ remuneration report 180 – 206
Annual Report 2025 | Standard Chartered 207
Directors’ report
Other statutory and regulatory disclosures
Our reporting methodology is based on ‘The Greenhouse
Gas(GHG) Protocol – A Corporate Accounting and Reporting
Standard (Revised Edition)’. We have adopted theoperational
control approach to define our reporting boundary for GHG
Scope 1 and 2 emissions. For Scope 3 financed and facilitated
emissions, boundaries are noted for each high-emitting sector
inthe ‘Our approach to measuring financed emissions’ table
inthe Sustainability review onpage99.
Information on the principles and methodologies used
tocalculate the GHG emissions of the Group can be found
inourEnvironmental Reporting Criteria document at
sc.com/environmentcriteria.
Reporting period, boundary and scope
We report on sustainability and ESG matters throughout
thisAnnual Report, including in the following sections: (i)
Strategic report on pages 1 to 52; (ii) Sustainability review
onpages 66 to 128; (iii) Risk review on pages 218 to 302; and (iv)
in the Supplementary sustainability information section on
pages 450 to 465.
The reporting period for Scope 1 and Scope 2 emissions and
energy consumption is from 1 October 2024 to 30 September
2025. This allows sufficient time for independent third-party
assurance to be completed prior to the publication of the
Sustainable finance taxonomies
Standard Chartered continues to assess the applicability of
sustainable finance taxonomies across the Group’s footprint.
Reporting has commenced in several markets in accordance
with local sustainable finance taxonomy regulatory requirements.
The Group will continue to consider applicable taxonomy
alignment in our business decisions, including at a client and
transaction level, as well as more broadly at a sector strategy
level. Given our footprint across Europe and the UK, Asia, Africa
and the Middle East, we need to continually assess taxonomy
alignment requirements based on information available from
clients and through our due diligence processes.
Streamlined energy and carbon reporting
Environmental impact of our operations
We aim to minimise the environmental impact of our operations
as part of our commitment to be a responsible company. We
report on the actions we take to reduce energy and water usage,
and non-hazardous waste generated in ouroperations in the
Sustainability review on page 93 and inthe ESG Data Pack at
sc.com/sustainabilitylibrary.
Environmental, Social and Governance disclosures
Hong Kong Listing
Rules Appendicies
C1and C2
Our disclosures are consistent with the requirements of the ESG Reporting Guide contained in Appendix
C1 and C2 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
With respect to the KPIs noted in Appendix C2: ‘Comply or explain’ provisions, the Group does not
report on KPI A1.3 and KPI A1.6 related to the production and handling of hazardous waste; KPI A2.4
related to water efficiency targets; KPI A2.5 related to packaging materials used for finished products;
KPI B6.1 total products recalled due to safety and health reasons; and KPI B6.4 product recall
procedures. As an office-based financial services provider these issues were not deemed material. For
further information related to Aspect B4 Labour Standards and B5 Supply Chain Management, please
also refer to the Group’s annual Modern Slavery Statement.
With respect to the climate-related disclosures in Part D: ‘Comply or explain’ provisions, the Group has
sought to comply with material requirements to the extent currently possible without undue cost or
effort for the Group or for our clients and other third parties who provide or publish information required
for our most material disclosures. Requirements for which we are not yet able to disclose all information
are disclosed on page 71.
Task Force on
Climate-related
Financial Disclosures
(TCFD)
In accordance with UK Listing Rule 6.6.6R(8), we confirm that we have made disclosures in this Annual
Report consistent with the TCFD recommendations as per Section C – Guidance for All Sectors, and
Section D – Supplemental Guidance for the Financial Sector: Banks of the 2021 TCFD Implementing
Guidance. For further information, refer to our Climate Reporting Index on pages 458 to 465.
Aspect B4 Labour
Standards and B5
Supply Chain
Management
Refer to the Group’s annual Modern Slavery Statement (see below).
Non-financial and
sustainability
information
statement
Our non-financial and sustainability information statement is included within page 50 of the
Strategicreport.
Modern slavery The Group annually publishes a Modern Slavery Statement under the UK Modern Slavery Act 2015
andthe Australian Modern Slavery Act 2018. The Statement for the year ended 31 December 2025
canbe located at sc.com/modernslavery.
Standard Chartered | Annual Report 2025208
GHG emissions and energy consumption data
The Group has disclosed Scope 1 and Scope 2 GHG emissions and energy consumption data as required by the Large
andMedium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
Units 2025 2024 2023
Reporting coverage of data
Annual operating income from 1 October to 30 September $ million 20,818 19,110 17,414
Net internal area of occupied property m
2
864,961 850,817 880,515
GHG emissions
Scope 1 and 2:
Scope 1 emissions tCO
2
e 5,792 7,696 8,488
1
Scope 2 emissions (location-based)
2
tCO
2
e 74,591 82,837 85,741
Scope 2 emissions (market-based)
3
tCO
2
e 0 17,272 26,246
Scope 1 and 2 emissions (market-based)
3
tCO
2
e 5,792 24,968 34,734
Scope 1 and 2 emissions (UK and offshore area only) tCO
2
e 0 – 248
GHG emissions – Intensity:
Total Scope 1 and 2 emissions (market-based)/intensity tCO
2
e/$ million 0 1 2
Environmental resource efficiency
Energy
Indirect non-renewable energy consumption GWh 126 125 142
Indirect renewable energy consumption GWh 13 14 16
Direct non-renewable energy consumption GWh 8 12 13
Direct renewable energy consumption GWh 2 2 2
Energy consumption GWh 150 154 173
Energy consumption (UK and offshore area only) GWh 5 7 6
1 As we aim to improve our emissions measurement and reporting year-on-year, we have included leased vehicle fleet emissions in our Scope 1 data since 2024
(733tCO
2
e in 2025 and 1,340 tCO
2
e in 2024) and fugitive emissions since 2023 (3,035 tCO
2
e in 2025, 3,877 tCO
2
e in 2024 and 5,266 tCO
2
e in 2023).
2 Location-based reductions are attributed to footprint reduction and efficiency gains.
3 Market-based emissions have decreased from 2024 to 2025 also due to footprint reduction, efficiency gains as well as the purchase of additional energy attribution
certificates by the Group.
Further detail on our environmental performance and the independent assurance report can be found in our
ESG data pack at sc.com/sustainabilitylibrary; and associated assumptions and methodologies in our reporting criteria
document at sc.com/environmentalcriteria
Share capital, constitution and
shareholderrights
Share capital in issue
The issued ordinary share capital of the Company was
reduced by a total of 162,524,297 over the course of 2025.
Thiswas due to the cancellation of ordinary shares as part of
the Company’s two share buyback programmes. No ordinary
shares were issued during the year. The Company has one
class of ordinary shares, which carries no rights to fixed income.
On a show of hands, each member present has the right to
one vote at our general meetings. On a poll, each member
isentitled to one vote for every share held. The issued nominal
value of the ordinary shares represents 81.15 per cent of the
total issued nominal value of all share capital.
The remaining 18.85 per cent comprises preference shares,
which have preferential rights to income and capital but
which, in general, do not confer a right to attend and vote
atour general meetings.
There are no specific restrictions on the size of a holding
oronthe transfer of shares, which are both governed by the
Articles of Association and prevailing legislation. There are
nospecific restrictions on voting rights and the directors
arenot aware of any agreements between holders of the
Company’s shares that may result in restrictions on the
transfer of securities or on voting rights. No person has any
special rights of control over the Company’s share capital
and all issued shares are fully paid.
Group’s Annual Report. Accordingly, the operating income used
in the GHG emissions and energy consumption data table below
for associated environmental intensity metrics corresponds to
the same period, rather than the calendar year used for
financialreporting. The reporting periods for other sustainability
information in this Annual Report may differ and are set out
onpage 74.
There was no significant change in the boundary and scope
ofour Scope 1 and Scope 2 emissions reported in this Annual
Report from that of Standard Chartered PLC Annual Report
2024, published on 21 February 2025.
Assurance
Our Scope 1 and 2 emissions are assured (limited level) by
anindependent company, Global Documentation, against
therequirements of ISO 14064.
Annual Report 2025 | Standard Chartered 209
Directors’ report
Other statutory and regulatory disclosures
Buyback
At the AGM held on 8 May 2025, our shareholders renewed
the Company’s authority to make market purchases of up
to239,567,385 ordinary shares, equivalent to approximately
10 per cent of issued ordinary shares as at 19 March 2025,
andup to all of the issued preference share capital.
The authority to make market purchases up to 10 per cent
ofissued ordinary share capital (and, prior to the 2025 AGM,
a similar authority granted in the previous year at the 2024
AGM) was used during the year through two buyback
programmes announced in February and in July 2025.
Thesewere utilised as part of the Group’s approach to
dividend growth and capital returns. The first share buyback
programme commenced on 21 February 2025 and ended
on30 July 2025. The second share buyback programme
commenced on 1 August 2025 and ended on 26 January 2026.
A total of 160,384,816 ordinary shares with a nominal value
of$0.50 each were re-purchased under the two programmes
for an approximate aggregate consideration paid of
$2.8 billion. A monthly breakdown of the shares purchased
during the period including the lowest and highest price paid
per share is set out in Note 28 to the financial statements.
Allordinary shares that were bought back were cancelled.
Articles of Association
The Articles of Association may be amended by special
resolution of the shareholders. The Articles of Association
contain provisions relating to the appointment, retirement
and removal of directors. Read more on the election and
appointment of directors on page 158.
Directors’ powers
Subject to company law, the Articles of Association and
theauthority granted to directors in general meeting,
thedirectors may exercise all the powers of the Company
andmay delegate authorities to committees.
The Company is granted authority to issue shares by the
shareholders at its AGM. The size of the authorities granted
depends on the purposes for which shares are to be issued
and is within applicable legal and regulatory requirements.
Shareholder rights
Under the Companies Act 2006, shareholders holding 5 per
cent or more of the paid-up share capital of the Company
carrying the right of voting at general meetings of the
Company are able to require the directors to hold a general
meeting. Where such a request has been duly lodged with
the Company, the directors are obliged to call a general
meeting within 21 days of becoming subject to the request
and must set a date for the meeting not more than 28 days
from the date of the issue of the notice convening the meeting.
Under the Companies Act 2006, shareholders holding 5
percent or more of the total voting rights at an AGM of the
Company, or 100 shareholders entitled to vote at the AGM
with an average of at least £100 paid-up share capital per
shareholder, are entitled to require the Company to circulate
a resolution intended to be moved at the Company’s next
AGM. Such a request must be made not later than six weeks
before the AGM to which the request relates or, if later, the
time when notice is given of the AGM.
Sufficiency of public float
As at the date of this report, the Company has maintained
the prescribed public float under the rules governing the
listing of securities on The Stock Exchange of Hong Kong
Limited (HKEx) (the Hong Kong Listing Rules), based on the
information publicly available to the Company and within the
knowledge of the directors.
Free float percentage
As of 31 December 2025, the free float percentage of voting
rights attached to all of the Company’s listed ordinary and
preference shares in issue was approximately 99.99 per cent.
For information on the outstanding Fixed Rate Resetting
Perpetual Subordinated Contingent Convertible AT1 securities
issued by Standard Chartered PLC and the rights attached
tothem, see Note 28 and sc.com/capital-securities-in-issue.
Debenture issues and equity-linked agreements
During the financial year ended 31 December 2025, other
than as disclosed in the Annual Report and Notes 22, 27
and28 to the financial statements, the Company made
noissuance of debentures (including debenture stock, bonds
and any other debt securities). Details of the equity-linked
agreements the Group entered into can be found in Note 28
to the financial statements.
Electronic communications
Our shareholders are encouraged to receive our corporate
documents electronically. The annual and interim financial
statements, Notice of AGM and dividend circulars are all
available electronically. If you do not already receive your
corporate documents electronically and would like to do
soinfuture, please contact our registrars at the address on
page467. Shareholders are also able to submit proxy votes
orvoting instructions online by visiting our registrar’s website
atwww.investorcentre.co.uk/eproxy.
Dividends
2025: paid interim dividend of 12.3 cents per ordinary share
(2024: paid interim dividend of 9 cents per ordinary share)
2025: proposed final dividend of 49 cents per ordinary share
(2024: proposed final dividend of 28 cents per ordinary share)
2025: total dividend of 61 cents per ordinary share
(2024: total dividend of 37 cents per ordinary share)
In 2026, the Board adopted a dividend policy which
formalised the existing approach to dividend payments.
Thedividend policy provides that the Board is committed
topaying a sustainable cash dividend to its shareholders,
while retaining the flexibility to invest and grow the business.
TheBoard decides the level of any dividend based on several
factors including, but not limited to, capital adequacy and
regulatory requirements, profitability and earnings and
macroeconomic and credit conditions. This policy may
besupplemented by additional shareholder distributions
ifdeemed appropriate.
Standard Chartered | Annual Report 2025210
Directors’ independence, interests
andconflicts
The Company has received from each of the INEDs an
annualconfirmation of independence, pursuant to Rule 3.13
of the Hong Kong Listing Rules, and still considers all the
non-executive directors to be independent.
Details of the directors’ beneficial and non-beneficial
interests in the ordinary shares of the Company as at
31 December 2025 are shown in the Directors’ remuneration
report on page 196. As at 17 February 2026, the latest
practicable date before publication of this Annual Report,
there had been no changes to those interests in relation
todirectors remaining in office at that date.
At no time during the year did any director hold a material
interest in any contracts of significance (as defined in the
Hong Kong Listing Rules) with the Company or any of its
subsidiary undertakings. In accordance with the Companies
Act 2006, we have established a process requiring directors
to disclose proposed outside business interests before any
areentered into. This enables prior assessment of any conflict
or potential conflict of interest and any impact on time
commitment. On behalf of the Board, the Governance and
Nomination Committee reviews potential and existing
conflicts of interest annually to consider if they continue to be
conflicts of interest, and to revisit the terms upon which they
were authorised. The Board is satisfied that these processes
continue to operate effectively.
The Company has granted indemnities to all 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 financial year ended 31 December 2025 and
remain in force at the date of this report. Qualifying pension
scheme indemnity provisions (as defined by section 235 of the
Companies Act 2006) were in force during the financial year
ended 31 December 2025 for the benefit of the UK’s pension
fund corporate trustee (Standard Chartered Trustees (UK)
Limited) and remain in force at the date of this report.
Significant and related/connected party
contracts and arrangements
The Company is not party to any significant agreements
thatwould take effect, alter or terminate following a change
of control of the Company. The Company does not have
agreements with any director or employee that would
provide compensation for loss of office or employment
resulting from a takeover, except that provisions of the
Company’s share schemes and plans may cause awards
granted to employees under such schemes and plans to vest
on a takeover, subject to any regulatory or tax considerations
that may prevent this.
Details of transactions with directors and officers and other
related parties (within the meaning of IAS 24) are set out
inNote 36 to the financial statements.
Transactions with Temasek
By virtue of its shareholding of over 10 per cent in the
Company, Temasek and its associates are connected persons
of the Company for the purpose of the Rules Governing the
Listing of Securities on HKEx (the HK Listing Rules).
The HK Listing Rules are intended to ensure that there is
nofavourable treatment to Temasek or its associates to
thedetriment of other shareholders in the Company. Unless
transactions between the Group and Temasek or itsassociates
are specifically exempt under the HK Listing Rulesor are
subject to a specific waiver, they may require acombination
of announcements, reporting and independent
shareholders’approval.
On 19 November 2024, the HKEx extended a waiver
(theWaiver) it previously granted to the Company for the
revenue banking transactions with Temasek which do not fall
under the passive investor exemption (the Passive Investor
Exemption) under Rules 14A.99 and 14A.100 of the HK Listing
Rules. Under the Waiver, the HKEx agreed to waive the
announcement requirement, the requirements to enter into
written agreements and to set annual caps, and the annual
report disclosure (including annual review) requirements
under Chapter 14A of the HK Listing Rules for the three-year
period ending 31 December 2027 on the conditions that:
a) the Company will disclose details of the Waiver (including
nature of the revenue banking transactions with Temasek
and reasons for the Waiver) in subsequent annual reports;
and
b) the Company will continue to monitor the revenue banking
transactions with Temasek during the three years ending
31 December 2027 to ensure that the 5 per cent threshold
for the revenue ratio will not be exceeded.
The main reasons for seeking the Waiver were:
• The nature and terms of revenue banking transactions
may vary and evolve over time and the transactions may
be subject to the change in financial and capital markets
outlook. As a result of that, having fixed-term written
agreements would not be suitable to accommodate the
various banking needs of the Company’s customers
(including Temasek).
• It would be impracticable to estimate and determine
anannual cap on the revenue banking transactions with
Temasek as the volume and aggregate value of each
transaction are uncertain and unknown to the Company
as a banking group due to multiple factors including
market-driven factors.
• The revenues generated from revenue banking
transactions were insignificant. Without a waiver from
theHKEx or an applicable exemption, these transactions
would be subject to various percentage ratio tests which
cater for different types of connected transactions and
assuch may produce anomalous results.
As a result of the Passive Investor Exemption and the Waiver,
the vast majority of the Company’s transactions with Temasek
and its associates fall outside of the connected transactions
regime. However, non-revenue transactions with Temasek
orany of its associates continue to be subject to monitoring
for connected transaction issues.
Annual Report 2025 | Standard Chartered 211
Directors’ report
Other statutory and regulatory disclosures
The Company confirms that:
• the revenue banking transactions entered into with
Temasek and its associates in 2025 were below the 5 per
cent threshold for the revenue ratio test under the HK
Listing Rules; and
• it will continue to monitor revenue banking transactions
with Temasek during the three years ending 31 December
2027 to ensure that the 5 per cent threshold for the
revenue ratio will not be exceeded.
The Company therefore satisfied the conditions of the Waiver.
Major shareholders
As at 31 December 2025, Temasek Holdings (Private) Limited
(Temasek) is the only shareholder that has an interest of
more than 10 per cent in the Company’s issued ordinary share
capital carrying a right to vote at any general meeting.
As at 31 December 2025, the Company has been notified of
the following information, from holders of notifiable interests
in the Company’s issued share capital in accordance with
Rule 5 of the Financial Conduct Authority’s (FCA) Disclosure
and Transparency Rules (DTRs).
1
Notifiable interests
Interest in
ordinaryshares
(basedonvoting
rightsdisclosed)
Percentage
of voting
rights
disclosed
2
Nature of holding
as per disclosure
Temasek Holdings
(Private) Limited 447,461,831 17.00 Indirect
BlackRock Inc. 183,640,172 5.55
Indirect (5.01%)
Securities Lending
(0.39%)
Contracts for
Difference (0.14%)
The Capital Group
Companies, Inc 121,730,334 5.04 Indirect
Schroders Plc 36,744,077 4.95 Indirect
1 The information provided was correct at the date of notification.
Theseholdings are likely to have changed since the Company was notified;
however, notification of any change is not required until the next notifiable
threshold is crossed.
2 The percentage of voting rights detailed above was calculated at the time
of the relevant disclosures made in accordance with Rule 5 of the DTRs.
For the period 1 January 2026 up to and including 17 February
2026 (the latest practicable date for inclusion in thisreport),
the Company has not received any additional notifications
pursuant to Rule 5 of the DTRs.
Information provided to the Company pursuant to Rule 5
ofthe DTRs is published on the Company’s website
at sc.com/stock-exchange-announcements and the London
Stock Exchange website at www.londonstockexchange.com.
Risk management and internal controls
3
Risk management
The Board is responsible for maintaining and reviewing the
effectiveness of the risk management framework, including
approval of any material changes to the Enterprise Risk
Management Framework (ERMF). There is an ongoing
process for identifying, evaluating and managing topical and
emerging risks that we face. The Board is satisfied that this
process constitutes a robust assessment of all the principal
risks and topical and emerging risks that the Group faces,
including those that would threaten our business model,
future performance, solvency or liquidity.
Key areas of risk on financial instruments for the directors
included the impairment of loans and advances, and
valuation of financial instruments held at fair value. Read
more on the risk assessment and management in the Audit
Committee report on pages 161 to 169.
The Risk review section sets out the principal risks, our
approach to risk management, an overview of our ERMF
andthe risk for each principal risk type. Read more on the
Board-approved Risk Appetite Statement on page 221
andour risk management approach on pages 220 to 232.
In accordance with Article 435(1)(e) of the Disclosure (CRR)
Part of the PRA Rulebook, the Board Risk Committee, on
behalfof the Board, has considered the adequacy of the risk
management arrangements of the Group and has sought
and received assurance that the risk management systems
inplace are adequate with regard to the Group’s profile
andstrategy.
Internal controls
The Board is responsible for maintaining and reviewing the
effectiveness of the internal control framework covering all
material controls, including financial, operational and
compliance controls. Its effectiveness is reviewed regularly
bythe Board, its committees, the Management Team and
Group Internal Audit and Investigations (GIAI).
In January 2024, the Financial Reporting Council (FRC)
published a revised UK Corporate Governance Code (the
Code), which introduces enhanced requirements for boards
regarding risk management and internal controls. The most
significant change is in respect of Provision 29, which requires
the Board to make a declaration of the effectiveness of
material controls in our FY2026 Annual Report. This declaration
will supplement our existing annual ERMF effectiveness review.
The Stock Exchange of Hong Kong amended its Corporate
Governance Code and related listing rules in July 2025
regarding boards’ responsibilities over risk management and
internal controls, including enhanced Mandatory Disclosure
Requirements on significant control failings or weaknesses.
Throughout 2025, our dedicated Programme has been
preparing for the implementation ofboth codes through
identifying and prioritising material controls against our
Principal Risks, ensuring a robust foundation for the
declaration of effectiveness.
For the year ended 31 December 2025, the Board Risk
Committee and Audit Committee jointly reviewed the
effectiveness of the Group’s ERMF and internal control
framework and discussed reports on the 2025 annual risk
andcontrol self-assessment and on the internal controls
forfinancial books and records.
Group Internal Audit (GIA) represents the third line of defence
and provides independent assurance of the effectiveness
ofmanagement’s control of business activities (the first line)
and of the control processes maintained by the Risk
Framework Owners and Policy Owners (the second line).
Theaudit programme includes obtaining an understanding
of the processes and systems under audit review, evaluating
3 The Group’s Risk Management Framework and System of Internal Control applies only to wholly controlled subsidiaries of the Group, and not to Associates,
JointVentures or Structured Entities of the Group.
Standard Chartered | Annual Report 2025212
the design of controls, and testing the operating
effectiveness and outcomes of key controls.
The work of GIA is focused on the areas of greatest risk
asdetermined by a risk-based assessment methodology.
TheBoard considers the internal control systems of the
Company to be effective and adequate.
GIAI reports regularly to the Audit Committee, the Group
Chair and the Group Chief Executive and the Group Chief
Internal Auditor reports directly to the Chair of the Audit
Committee and administratively to the Group Chief
Executive. The findings of all adverse audits are reported to
the Audit Committee, the Group Chair and the Group Chief
Executive where immediate corrective action is required.
The Board Risk Committee is responsible for exercising
oversight, on behalf of the Board, of the Group’s key risks.
Itreviews the Group’s Risk Appetite Statement and makes
recommendations to the Board. The Audit Committee is
responsible for oversight and advice to the Board on matters
relating to financial, non-financial and narrative reporting.
The Audit Committee’s role is to review, on behalf of the
Board, the Group’s internal controls including internal
financial controls.
The risk management approach on page 223 describes the
Group’s risk management oversight committee structure.
Our business is conducted within a developed control
framework, underpinned by policies and standards. These
aredesigned to ensure the identification and management
of risk, including Credit Risk, Traded Risk, Treasury Risk,
Operational and Technology Risk, Information and Cyber
Security Risk, Compliance Risk, Financial Crime Risk,
Environmental, Social and Governance and Reputational
(ESGR) Risk, and Model Risk. This framework incorporates the
Group’s internal controls on financial reporting. The Board
has established a management structure that clearly defines
roles, responsibilities and reporting lines.
Delegated authorities are documented and communicated.
Executive risk committees regularly review the Group’s risk
profile. The performance of the Group’s businesses is reported
regularly to senior management and the Board. Performance
trends and forecasts, as well as actual performance against
budgets and prior periods, are monitored closely. Group
financial information is prepared on the basis set out in
Note1to the financial statements within the Statement
ofcompliance and financial reporting is subject to the
Group’s control framework for reconciliation processes.
Policies, processes and internal controls have been
established to facilitate complete, accurate and timely
processing of transactions and the safeguarding of assets.
These controls include appropriate segregation of duties, the
regular reconciliation of accounts and the valuation of assets
and positions. In respect of handling inside information, we
have applied industry standard controls that meet regulatory
requirements and expectations. These help ensure that
insideinformation is disclosed only in the normal course
ofprofessional duties, and to the minimum number of
individuals possible. Pre-clearance controls are also in
placeto review personal dealings in related securities.
Suchsystemsand controls are designed to manage rather
than eliminate the risk of failure to achieve business
objectives and can only provide reasonable and not absolute
assurance against material misstatement or loss.
Safeguarding intellectual property rights
The Group has brands including STANDARD CHARTERED,
SC(logo), its blue/green livery, and various product brand
names. These brands are protected through various legal
means including but not limited to a trademark registration
process in all relevant markets. The Group has a global brand
protection strategy which enables proactive enforcement of
the Group’s intellectual property rights against unauthorised
third-party use. The Group also has processes to identify and
protect innovation by various means including patents.
Employee 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 the Group’s strategy and
transformation. Pulse is our primary internal communications
channel that allows colleagues to receive Group 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 employee
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 to ensure
our communications remain effective. 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 the Group’s 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. The Group’s senior leadership regularly shares
global, business, function, and market updates on performance,
strategy, structural changes, HR programmes, community
involvement and other campaigns. The Board engages with
and listens to the views of the workforce through several
sources, including through interactive engagement sessions.
Annual Report 2025 | Standard Chartered 213
Directors’ report
Other statutory and regulatory disclosures
Employees past, present and future can follow our
progressthrough the Group’s LinkedIn network, Facebook
page, Instagram and X, which collectively have nearly
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
Company and the Board have engaged with employees
andconsidered employee interests on page 39 of the
Strategic Report.
Employee share plans
Employees are encouraged to participate in the Company’s
performance through the Employee Sharesave Plans, the
details of which are set out in Note 31 of the financial
statements on pages 403 to 408.
Employment policies
We work hard to ensure our employees’ wellbeing so that
they can thrive at work and in their personal lives. Our 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
Organization’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, 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 Organise Convention, 1948 (No. 87). As at 31 October 2025,
13.5 per cent of employees, across 18 markets, have collective
representation through unions or employee representative
bodies. Working conditions and terms of employment of
other employees are based on our 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 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 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 Group Grievance Standard, Group
Investigation Standard and accompanying process are
reviewed on a periodic basis in consultation with stakeholders
across HR, Legal, Compliance, and Group Internal Audit
andInvestigations. Grievance and investigation trends are
reviewed on aregular basis and action is taken to address
any concerningtrends.
There is a distinct 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 Group. Further information
regarding Speaking Up can be found on pages 118 to 119.
The 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 Group Disciplinary Standard.
Dismissals due to misconduct issues and/or performance
(where required by law to follow a disciplinary process) are
governed by the 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 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 Group, including contractors, consultants and secondees.
All colleagues are required to comply with this standard.
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 a workplace free from
harassment, bullying, discrimination and victimisation.
Thishelps to support productive working conditions,
decreased employee attrition, positive employee morale
andengagement, maintains employee wellbeing and
reduces people-related risk.
Standard Chartered | Annual Report 2025214
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.
Information on the Group’s wider diversity and inclusion
strategy, including gender balance across the Group and
targets for ethnic representation across the Group, can be
found on pages 35 to 36.
Read more on the Group’s approach to diversity and
inclusion can be viewed at sc.com/diversity-and-inclusion
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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 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 by giving
fulland fair considerations to all applications) 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 Bank’s
enterprise risk management framework.
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 is reported annually to the Group Risk
Committee and Board 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 (ILO)
Code of Practice and UK Health and Safety Executive (HSE)
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 per cent
ofthose recorded. We recorded a 14 per cent 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. 513 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.
Read more on how we support our colleagues’ wellbeing
onpages 33 to 36
Annual Report 2025 | Standard Chartered 215
Directors’ report
Group Code of Conduct and Ethics
The Board has adopted a Group Code of Conduct and
Ethics(the Code) relating to the lawful and ethical conduct
ofbusiness and this is supported by the Group’s valued
behaviours. This has been communicated to all directors
andemployees, all of whom are expected to observe high
standards of integrity and fair dealing in relation to
customers, employees and regulators in the communities in
which theGroup operates. Directors and employees are
asked torecommit to the Code annually, and 99.7 per cent
have completed the 2025 recommitment. All Board members
haverecommitted to the Code.
Suppliers and our supply chain
In 2025, USD $5.08 billion was spent with 10,127 suppliers.
Ofthis, 72.3 per cent of the total spend was in the Asia region,
with 21.6 per cent in Europe and the Americas, and 6.1per
cent in Africa and the Middle East. Furthermore, 80 per cent
of total spend in 2025 was with 342 suppliers. In 2025, ourfive
largest suppliers together accounted for 16.2 per cent of total
spend, with the largest ten amounting to 25.18 per cent of
total spend.
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.
Read more on how the Group engages with suppliers
onenvironmental and social matters in our Supplier
Charterand Supplier Diversity and Inclusion standard at
sc.com/suppliers and sc.com/supplier-diversity
Read more on how we create value for our suppliers
andother stakeholder groups on page 11
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, and
(iii) fund political causes. In alignment to this, no political
donations were made in the year ended 31 December 2025.
Read more regarding our public policy engagementon our
website sc.com/politicalengagement
Other statutory and regulatory disclosures
Research and development
During 2025, the Group invested $2.09 billion (2024:
$2.13 billion) in research and development, of which
$1.21(2024: $1.18 billion) 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.
Responsible AI
The Group has been actively embracing AI and digital
innovation to stay competitive in the banking, financial
services and insurance sector for a number of years.
Theapproved AI use cases in the Bank are deployed in
various domains such as customer engagement, operational
efficiency, risk management, customer onboarding, employee
engagement, management reporting and talent acquisition.
Our Responsible AI governance has been established for
several years and is led by a dedicated team within the
ChiefData Office, who have been effectively managing
thecentralised governance of all AI use cases. Our approach
aligns with leading industry standards, specifically the
Monetary Authority of Singapore Fairness, Ethics,
Accountability, and Transparency (MAS FEAT) and Hong
Kong Monetary Authority Big Data and Artificial Intelligence
(HKMA BDAI) guidelines, which are benchmarks in the
Banking regulator space. This alignment not only ensures
ouradherence to high ethical and regulatory guidelines
butalso positions us well for future industry developments.
OurAudit Committee receives twice-yearly reports on
DataRisk, which includes responsible AI.
By order of the Board
Scott Corrigan
Group Company Secretary
24 February 2026
Standard Chartered PLC Registered No. 966425
Standard Chartered | Annual Report 2025216
Statement of directors’
responsibilities
The directors are responsible for preparing the Annual
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, a Directors’
Report, a Directors’ Remuneration Report and a Corporate
Governance Statement that comply with that law
andthoseregulations.
The directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website. Legislation in the UK governing
the preparation and dissemination of financial statements
differs from legislation in other jurisdictions.
Responsibility statement of the directors
inrespect of the annual financial report
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 Annual Report and Accounts, taken as a
whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Group’s
position and performance, business model and strategy.
By order of the Board.
Bill Winters, CBE
Group Chief Executive
24 February 2026
Annual Report 2025 | Standard Chartered 217
Directors’ report
In this section
220 Enterprise Risk Management Framework
226 Principal Risks
233 Credit Risk
277 Traded Risk
281 Liquidity and Funding Risk
286 Operational and Technology Risk
287 Environmental, Social and Governance
andReputational Risk
303 Capital review
Risk review and
Capital review
Case study
Broadening our
wealth offering
across the globe
In February 2025, we opened our first Priority
PrivateWealth Centre in Dubai, expanding our
global wealth offering for high-net-worth clients
inthe Middle East, Europe and Africa.
The new centre caters to the growing demand ofhigh-
net-worth individuals for bespoke, cross-border financial
solutions, including a range of international investment
opportunities and multi-market lending facilities.
In 2025, we also opened additional Wealth Centres
inMainland China, Hong Kong, Taiwan and Korea,
bringingthenumber to 16.
Read more: sc.com/wealthcentres
Standard Chartered | Annual Report 2025218
Risk Index Page
Risk management approach
Enterprise Risk Management Framework
220
Principal Risks
226
Risk profile
Credit Risk
233
Basis of preparation 233
Credit risk overview 233
Impairment model 233
Staging of financial instruments 233
IFRS 9 ECL principles and approaches 233
Summary of Credit Risk performance 234
Maximum exposure to Credit Risk 236
Analysis of financial instrument by stage 237
Credit quality analysis 238
• Credit quality by client segment 239
• Credit quality by key geography 241
Movement in gross exposures and credit
impairment for loans and advances, debt
securities, undrawncommitments and
financial guarantees
246
Analysis of stage 2 balances 253
Credit impairment charge 254
Problem credit management and provisioning 254
• Forborne and other modified loans
byclientsegment
254
• Forborne and other modified loans
bykeygeography
255
Credit risk mitigation 255
• Collateral 255
• Collateral held on loans and advances 255
• Collateral – Corporate & Investment
Banking
256
• Collateral – Wealth & Retail Banking 256
• Mortgage loan-to-value ratios
bygeography
257
• Collateral and other credit enhancements
possessed or called upon
257
Risk Index Page
• Other Credit Risk mitigation 257
Other portfolio analysis 257
• Maturity analysis of loans and advances by
client segment
257
• Credit quality by industry 258
• Industry and Retail Products analysis of
loans and advances by key geography
259
• High carbon sectors 260
• Commercial real estate 262
Debt securities and other eligible bills 263
IFRS 9 ECL methodology 264
Traded risk
277
Counterparty Credit Risk 277
Market Risk 277
Liquidity and Funding Risk
281
Liquidity and Funding Risk metrics 281
Liquidity analysis of the Group’s balance sheet 282
Interest Rate Risk in the Banking Book
285
Operational and Technology Risk
286
Operational and Technology Risk profile 286
Other principal risks 286
Environmental, Social and Governance
and Reputational Risk
287
Managing Climate Risk 287
Assessing the resilience of our strategy using
scenario analysis
298
Capital
Capital summary 303
• Capital ratios 303
• Capital base 304
Movement in total capital 305
Risk-weighted asset 306
Leverage ratio 308
The following parts of the Risk review and Capital review form part of these financial statements and are audited by the
external auditors:
a) Risk review: Disclosures marked as ‘audited’ from the start of Credit risk section (page 233) to the end of other principal risks
in the same section (page 286); and
b) Capital review: Tables marked as ‘audited’ from the start of ‘Capital base’ to the end of ‘Movement in total capital’,
excluding ‘Total risk-weighted assets’ (pages 304 and 305).
Annual Report 2025 | Standard Chartered 219
Risk review and Capital review
Enterprise Risk Management
Framework
Effective risk management is essential in delivering consistent
and sustainable performance for all our stakeholders and is
acentral part of the financial and operational management
of the Group. The Group adds value to clients and the
communities in which they operate by balancing risk and
reward to generate returns for shareholders.
The Enterprise Risk Management Framework (ERMF) enables
the Group to manage enterprise-wide risks, with the objective
of maximising risk-adjusted returns while remaining within
our Risk Appetite (RA). The ERMF is complemented by
frameworks, policies and standards which are mainly aligned
to the Principal Risk Types (PRTs), and is embedded across
the Group, including its branches and subsidiaries.
1
It is
reviewed and approved by the Board annually, with the
latest version being effective from August 2025.
Risk culture
Risk culture encompasses our general awareness, attitudes,
and behaviours towards risk, as well as how risk is managed
at enterprise level.
A healthy risk culture is one in which everyone takes personal
responsibility to identify and assess, openly discuss, and take
prompt action to address existing and emerging risks. We
expect our control functions to provide oversight and challenge
constructively, collaboratively, and in a timely manner on the
risks owned by the first line of defence. This effort is reflected
in our valued behaviours and underpinned by our Code
ofConduct and Ethics.
The risks we face constantly evolve, and we must always
lookfor ways to manage them as effectively as possible.
While unfavourable outcomes will occur from time to time,
ahealthy risk culture means that we react quickly and
transparently. We can then take the opportunity to learn from
our experience and improve our framework and processes.
Read more on our Code of Conduct and Ethics on page 118
Strategic risk management
The Group’s approach to strategic risk management includes
the following:
• Risk identification: impact analyses of risks that arise
fromthe Group’s growth plans, strategic initiatives, and
business model vulnerabilities are reviewed. This assesses
how existing risks have evolved in terms of relative
importance and whether new risks have emerged.
• Risk Appetite: impact analysis is performed to assess
ifstrategic initiatives can be achieved within RA and
highlight areas where additional RA should be considered.
• Stress testing: identified risks are used to develop
scenarios for enterprise stress tests.
Roles and responsibilities
Senior Managers Regime
2
Roles and responsibilities under the ERMF are aligned to the
objectives of the Senior Managers Regime. The Group Chief
Risk Officer (GCRO) is responsible for the overall development
and maintenance of the Group’s ERMF and for identifying
material risks which the Group may be exposed to.
TheGCROdelegates effective implementation of the Risk
Type Frameworks (RTF) to Risk Framework Owners (RFO),
who provide second line of defence oversight for their
respective PRTs.
The Risk function
The Risk function provides independent oversight and
challenge on the Group’s risk management, ensuring that
business is conducted in line with regulatory expectations.
The GCRO directly manages the Risk function, which is
independent from the origination, trading, and sales functions
of the businesses. The Risk function is responsible for:
• proposing the RA for approval by the Board
• maintaining the ERMF, ensuring that it remains relevant
and appropriate to the Group’s business activities, and
iseffectively communicated and implemented across
theGroup
• ensuring that risks are properly assessed, risk and
returndecisions are transparent and risks are controlled
inaccordance with the Group’s standards and RA
• overseeing and challenging the management of PRTs
under the ERMF
• ensuring that the necessary balance in making risk
andreturn decisions is not compromised by short-term
pressures to generate revenues.
We have a unified second line of defence, with all the PRTs
reporting into the GCRO. The unified second line supports
theGroup’s strategy by building a sustainable ERMF that
places regulatory and compliance standards, together with
cultureof appropriate conduct, at the forefront of the
Group’sagenda.
1 The Group’s ERMF and system of internal control applies only to wholly controlled subsidiaries of the Group, and not to associates, joint ventures orstructured
entities of the Group.
2 Senior managers refer to individuals designated as senior management functions under the FCA and PRA Senior Managers Regime.
Risk management is at the heart of banking, it is what we do.
Managing risk effectively is how we drive commerce and prosperity
for our clients and our communities, and it is how we grow
sustainably and profitably as an organisation.
Standard Chartered | Annual Report 2025220
Three lines of defence model
The Group applies a three lines of defence model to
itsday-to-day activities for effective risk management,
andtoreinforce a strong governance and control
environment. Typically:
• Businesses and functions engaged in or supporting
revenue generating activities that own and manage risks
constitute the first line of defence.
• Control functions, independent of the first line of defence,
that provide oversight and challenge of risk management
activities act as the second line of defence.
• Group Internal Audit acts as the third line of defence,
providing independent assurance on the effectiveness
ofcontrols supporting the activities of the first and second
lines ofdefence.
Each PRT has an RTF which outlines the areas of governance
and risk management and is the formal mechanism through
which authorities are delegated. Risk management plans,
processes, activities, and resource allocations are consistent
with the three lines of defence model prescribed by the ERMF.
Risk identification and assessment
Identification and assessment of potentially adverse risk
events is an essential first step in managing the risks of
anybusiness or activity. To ensure consistency we use PRTs
toclassify our risk exposures. However, we also recognise
theneed to maintain a holistic perspective since:
• a single transaction or activity may give rise to multiple
types of risk exposure
• risk concentrations may arise from multiple exposures
thatare closely correlated
• a given risk exposure may change its form from one risk
type to another.
There are also sources of risk that arise beyond our own
operations, such as the Group’s dependency on suppliers
forthe provision of services and technology.
As the Group remains accountable for risks arising from the
actions of such third parties, failure to adequately monitor
and manage these relationships could materially impact
theGroup’s ability to operate.
The Group maintains a taxonomy of risks inherent to the
strategy and business model, as well as a risk inventory which
captures identified risks, including the Topical and Emerging
Risks (TERs) which the Group is or might be exposed to.
Multiple identification and assessment techniques are
usedtoensure breadth and depth of understanding of the
internal and external risk environment, as well as potential
opportunities. A risk assessment of the corporate plan is
undertaken annually, supplemented by risk assessments of
new initiatives. Risk identification findings inform the related
risk oversight process, RA and controls setting, scenario
selection and design, and model refinement and development.
The GCRO and the Group Risk Committee (GRC) regularly
review reports on the risk profile for the PRTs, adherence to
Group RA, stress test results and the risk identification results
including TERs.
Risk Appetite and profile
The Group recognises the following constraints which
determine the risks that we are willing to take in pursuit of our
strategy and the development of a sustainable business:
• Risk capacity is the maximum level of risk the Group can
assume, given its current capabilities and resources, before
breaching constraints determined by capital and liquidity
requirements or the internal operational environment, or
otherwise failing to meet the expectations of regulator
and law enforcement agencies.
• RA is defined by the Group and approved by the Board.
Itis the boundary for the risk that the Group is willing
toundertake to achieve its strategic objectives and
corporate plan. We set our RA to enable us to grow
sustainably while managing our risks, giving confidence
toour stakeholders. The Group RA is supplemented by
riskcontrol tools such as granular level limits, policies,
andstandards to maintain the Group’s risk profile
withinapproved RA.
The Board is responsible for approving the RA Statements,
which are underpinned by a set of financial and operational
control parameters known as RA metrics and their associated
thresholds. These set boundaries for the aggregate risk
exposures that can be taken across the Group.
The Group RA is reviewed at least annually to ensure that
itisfit for purpose and aligned with strategy, with focus given
to new or emerging risks.
Risk Appetite Statement
The Group will not compromise adherence to its RA in order
to pursue revenue growth or higher returns.
Read more on the Group’s RA Statements on page 221.
Stress testing
The objective of stress testing is to support the Group
inassessing that it:
• does not carry excessive risk concentrations that could
produce unacceptably high losses under severe but
plausible scenarios
• has sufficient financial resources to withstand stress,
including under severe but plausible scenarios
• understands key business model risks and considers what
kind of event might crystallise those risks – even if extreme
and with a low likelihood of occurring – and identifies,
asrequired, actions to mitigate the likelihood or impact
ofthose events
• can meet risk appetite and planned distributions after
considering relevant downside scenarios
• has set RA metrics at appropriate levels.
Enterprise stress tests incorporate capital and liquidity
adequacy stress tests, including recovery and resolution, as
well as reverse stress tests. The Group uses historical, topical,
emerging and hypothetical forward-looking scenarios.
Acommon set of scenarios is used across all legal entities
complemented in some cases with entity-specific scenarios.
Annual Report 2025 | Standard Chartered 221
Risk review and Capital review
Stress tests are performed at the Group, country, business,
and portfolio level under a wide range of risks and at varying
degrees of severity. Unless specifically set by the regulator,
scenario design is a bespoke process that aims to explore
risks that can adversely impact the Group.
The Board delegates approval of the Bank of England (BoE)
stress test submissions to the Board Risk Committee (BRC),
which reviews the recommendations from the GRC. Based
onthe stress test results, the Group Chief Financial Officer
(GCFO) and GCRO can recommend strategic actions to the
Board to ensure that the Group’s strategy remains within RA.
In addition, analysis is run at the PRT level to assess specific
risks and concentrations that the Group may be exposed to.
These include qualitative assessments such as stressing
ofcredit sectors or portfolios, and quantitative assessments
such as potential losses from severe but plausible market risk
scenarios or internal stressed liquidity metrics. RA for market
risk stress losses is set at the Group as well as legal entity level.
Non-financial risk types are also stressed to assess the
necessary capital requirements and/or operational resilience
under the Operational and Technology RTF.
The Group has also undertaken a number of Climate Risk
stress tests, both those mandated by regulators as well as
management scenarios.
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 ERMF.
These risks are managed through distinct RTFs which are approved by the GCRO.
The PRTs and associated RA Statements are reviewed annually. The table below shows the Group’s current PRTs, their
definitions and 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.
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 (ICS) 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 while incidents are unwanted,
they cannot be entirely avoided.
Enterprise Risk Management Framework
Standard Chartered | Annual Report 2025222
ERMF effectiveness reviews
The GCRO is responsible for annually affirming the
effectiveness of the ERMF to the BRC via an effectiveness
review. This review is based on the principle of evidence-
based self-assessments for all the RTFs and relevant policies.
A top-down review and challenge of the results is conducted
by the GCRO with all RFOs and an opinion on the internal
control environment is provided by Group Internal Audit.
The ERMF effectiveness review measures year-on-year
progress. The key outcomes of the 2025 review are:
• Continued focus on embedding the ERMF across
theorganisation.
• Financial risks remain effectively managed, and the Group
is continually making progress in embedding non-financial
risk management.
• Self-assessments performed in branches and banking
subsidiaries reflect the embeddedness of the ERMF.
Country and cluster risk committees continue to play an
active role in overseeing and managing risks across our
footprint markets.
Ongoing effectiveness reviews allow for a structured
approach to identify improvement opportunities and build
plans to address them.
Principal Risk Types Definition Risk Appetite Statement
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 while 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 or
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 while
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 misestimation 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; while accepting
some model uncertainty.
Executive and Board risk oversight
Overview
The corporate governance and committee structure helps
theGroup to conduct our business. The Board has ultimate
responsibility for risk management and approves the ERMF
based on the recommendation of the BRC, which also
recommends the Group RA Statement for all PRTs and other
risks. In addition to the BRC and Audit Committee, the Culture
and Sustainability Committee oversees the Group’s culture
and key sustainability priorities.
Group Risk Committee
The GRC, which derives its authority from the GCRO, is
responsible for ensuring the effective management of risk
throughout the Group in support of the Group’s strategy.
TheGCRO chairs the GRC, whose members are drawn from
the Group Management Team. The GRC oversees the effective
implementation of the ERMF for the Group, including the
delegation of any part of its authorities to appropriate
individuals or sub-committees.
1 Fraud forms part of the Financial Crime RA Statement but, in line with market practice, does not apply a zero-tolerance approach.
Annual Report 2025 | Standard Chartered 223
Risk review and Capital review
Group Risk Committee
sub-committees Chair Roles and responsibilities
Group Non-Financial Risk
Committee (GNFRC)
Global Head, Operational,
Technology and Cyber Risk
Governs the non-financial risks, including Fraud Risk,
throughout the Group in support of the ERMF and the
Group’s strategy.
Group Financial Crime Risk
Committee (GFCRC)
Group Head, CFCR Ensures that the Financial Crime Risk profile (excluding Fraud
Risk and Secondary Reputational Risk arising from Financial
Crime Risk) is managed within RA and policies.
Group Responsibility and
Reputational Risk
Committee (GRRRC)
Global Head ERM Ensures the effective management of Environmental, Social,
Governance and Reputational Risk across the Group. This
includes providing oversight of matters arising from clients,
products, transactions and strategic coverage-related
decisions and matters escalated by the respective RFOs.
International Financial
Reporting Standards
(IFRS) 9 Impairment
Committee (IIC)
Co-chaired by the Global
Head ERM and Group
Head, Central Finance
Ensures the effective management of expected credit loss
(ECL) computations, as well as stage allocation of financial
assets for quarterly financial reporting.
Model Risk Committee
(MRC)
Global Head, Model Risk
Management
Supports the Group strategy by ensuring the effective
measurement and management of Model Risk in line with
internal policies and model RA.
Investment Committee Global Head of Stressed
Assets Risk
Ensures the optimised wind-down of the Group’s non-core
direct investment activities in equities, quasi-equities
(excluding mezzanine), funds and other alternative
investments (excluding debt/debt-like instruments).
SC Ventures (SCV) Risk
Committee
CRO, SC Ventures & Global
Head, Digital Asset Risk
Oversees the effective management of risk throughout SCV
and the portfolio of controlled entities operating under SCV.
Regulatory Interpretation
Committee (RIC)
Co-chaired by the Global
Head ERM and Group
Head, Central Finance
Provides oversight of material regulatory interpretations
forthe Capital Requirements Regulation (as amended by
UKlegislation), the Prudential Regulatory Authority (PRA)
rulebook and other relevant regulations impacting Group
regulatory capital calculations and reporting. The areas and
risk types in scope are credit risk, traded risk, operational risk,
large exposures, leverage ratio and securitisation.
Digital Assets Risk
Committee (DRC)
CRO, SC Ventures & Global
Head, Digital Asset Risk
Oversees effective risk management of the Digital Assets
(DA) Risk profile of the Group. This includes providing
subjectmatter expertise and oversight of DA Risk matters
across thePRTs.
Corporate & Investment
Banking Financial Risk
Committee (CIBFRC)
Co-Heads CRO CIB and
CRO, ASEAN & South Asia
Ensures the effective management of financial risk
throughout CIB in support of the Group’s strategy.
Wealth & Retail Banking
Risk Committee (WRBRC)
Chief Risk Officer, WRB
&GCNA
Ensures the effective management of risk throughout WRB
insupport of the Group’s strategy.
Enterprise Risk Management Framework
Standard Chartered | Annual Report 2025224
Group Risk Committee
sub-committees Chair Roles and responsibilities
HK & GCNA Risk
Committee (HK&GCNA
RC)
CRO, Hong Kong & GCNA These committees ensure the effective management of risk
in the clusters in support of the Group’s strategy.
SG & ASEAN Risk
Committee
(SG&ASEANRC)
CRO, Singapore & ASEAN
Standard Chartered Bank
(SCB) India Country Risk
Committee (CRC & CNFRC)
CRO, India & South Asia
UK & Europe Risk
Committee (UK & ERC)
CRO, Europe
US Risk Committee (URC) CRO, Americas
Middle East and Pakistan
Risk Committee (MEPRC)
CRO, AME
Africa Risk Committee CRO, AME
Group Asset and Liability Committee
The Group Asset and Liability Committee (GALCO) is chaired by the GCFO. Its members are drawn principally from the
Management Team. GALCO is responsible for determining the Group’s balance sheet strategy and ensuring that, in executing
the Group’s strategy, the Group operates within RA and regulatory 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.
GALCO is also responsible for ensuring that internal and external recovery planning requirements are met.
Annual Report 2025 | Standard Chartered 225
Risk review and Capital review
Principal risks
Credit Risk
Mitigation
Segment-specific policies are in place for Corporate &
Investment Banking (CIB) and Wealth & 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.
The Group also sets out 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. The Group also seeks to diversify its 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.
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. Credit-impaired
accounts are managed by the Group’s specialist recovery
unit, Stressed Asset Group (SAG), which is independent of
theClient Coverage/Relationship Managers. Stressed Asset
Risk is the second line risk unit and 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
GRC and BRC.
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
cash flows, 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 manage and control our PRTs through distinct RTFs, policiesandRA.
Read more on the Group’s PRT definitions andRiskAppetite Statements on page 221
Standard Chartered | Annual Report 2025226
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 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).
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 GRC and BRC.
Credit impairment
For CIB, in line with the regulatory guidelines, Stage 3
expected credit loss (ECL) is considered when an obligor is
more than 90 days past due on any amount payable to the
Group, or the obligor has symptoms of 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.
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 BAU 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 are 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.
Annual Report 2025 | Standard Chartered 227
Risk review and Capital review
As an input to regulatory capital, trading book VaR is
calculated for expected movements over 10 business days
and to a confidence level of 99 per cent. Some types of
market risk are not captured in the regulatory VaR measure
and these risks not in VaR are subject to capital add-ons.
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.
Treasury Risk
Mitigation
The Group develops policies to address material Treasury
Risks and aims to maintain its risk profile within RA. In order
todo this, metrics are set against Capital Risk, Liquidity and
Funding Risk and IRRBB. Where appropriate, RA metrics are
cascaded down to clusters and countries in the form of limits
and management action triggers.
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 and are approved by the Board
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 Group’s
capitalplan.
RA metrics including capital, leverage, minimum requirement
for own funds and eligible liability (MREL) and double
leverage are assessed within the Corporate Plan to ensure
that the strategy can be achieved within risk tolerances.
Structural Foreign Exchange Risk
The Group’s structural FX position results from the Group’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 Group’s translation reserves with
adirect impact on the Group’s Common Equity Tier 1 ratio.
The Group contracts hedges to manage its structural FX
position in accordance with the RA, and as a result the Group
has taken net investment hedges to partially cover its
exposure to certain non-US dollar currencies to mitigate the
FX impact of such positions on its CET1 ratio.
Liquidity and Funding Risk
At Group, cluster and entity level we implement various
business-as-usual and stress risk 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.
The risk management approach and RA are assessed
annually through the Internal Liquidity Adequacy Assessment
Process. A funding plan, which is part of the Corporate Plan
process, is developed for efficient liquidity projections to
ensure that the Group is adequately funded to support
thebusiness growth and meet its obligations and client
funding needs.
Read more on Liquidity and Funding Risk on page 281
Interest Rate Risk in the Banking Book
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. TheGroup monitors and manages IRRBB using
multiple RAmetrics.
Read more on IRRBB on page 285
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.
The Pension Risk is monitored against the RA and reported
tothe GRC. The RA metric is calculated as the total capital
requirement (including both Pillar 1 and Pillar 2A capital)
inrespect of Pension Risk, expressed as a number of basis
points of RWA.
Recovery and resolution planning
In line with PRA requirements, the Group maintains a Recovery
Plan, which is a live document to be used by management
inthe event of financial stress in order to restore the Group’s
financial strength to a stable and sustainable position.
TheRecovery Plan includes a set of recovery indicators,
anescalation framework, and a set of management actions
capable of being implemented during a stress. A Recovery
Plan is also maintained within each major entity, and all
Recovery Plans are subject to periodic fire-drill testing.
Principal risks
Standard Chartered | Annual Report 2025228
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
Group. In support of this strategy, the Group has a set of
capabilities, arrangements, and resources in place to maintain,
test and improve resolution capabilities, and continues to
meet the required resolvability outcomes on an ongoing basis.
The Resolvability Self-Assessment Report was submitted
bythe Group to the PRA in October 2023, with an update
provided in January 2024. The Group also published its latest
resolvability disclosure, as required by the BoE, on 6 August
2024. The next 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 balance sheet
and the capital, liquidity, and IRRBB positions are presented
to the relevant country Asset and Liability Committee.
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 team within ERM reviews the
prudency 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.
Operational and Technology Risk
Mitigation
The Operational and Technology RTF sets out the Group’s
overall approach to the management of Operational and
Technology Risk in line with the Group’s Operational and
Technology RA. This is supported by the Risk and Control
Self-Assessment (RCSA), which provides a systematic
approach for identification and assessment of operational
risks, including design and operation of mitigating
controls(applicable to all risks as per the Non-Financial
RiskTaxonomy).
The RCSA is used to determine the design and operating
effectiveness of each process, and requires:
• the recording of end-to-end processes which deliver
ourkey client journey and business outcomes
• the identification of risks to support the achievement
ofclient and business outcomes
• the assessment of inherent risk on the impact to client
andbusiness outcomes, and likelihood of occurrence
• the design and monitoring of key controls to effectively
and efficiently mitigate prioritised risks within acceptable
levels and
• the assessment of residual risk and timely treatment
ofelevated risks.
Elevated Residual Risks require treatment plans to address
the underlying causes and reduce the risks to within the RA.
We continue to strengthen our commitment to operational
resilience through a robust risk management framework
which enables the Group to anticipate, prevent, adapt,
respond to, recover from, and learn from both internal
andexternal disruptions, supported by ongoing reviews,
control testing, and scenario-based assessments aimed
atanticipating and reducing the potential impact of
operational disruptions. The Group is required to conduct
anannual self-assessment to evaluate its operational
resilience. Thisself-assessment reviews the effectiveness
ofthe operational resilience framework, identifies areas
forimprovement, and ensures compliance with regulatory
expectations. These activities support the continuous
oversight and improvement of our response and
recoverycapabilities.
Monitoring
To deliver services to clients and to participate in the financial
services sector, the Group runs processes which are exposed
to Operational and Technology risks. The Group prioritises
and manages risks which are significant to our clients and
tothe financial services sectors. The control indicators are
regularly monitored to determine the Group’s exposure
toresidual risk.
The residual risk assessments and reporting of events
formthe Group’s Operational and Technology Risk profile.
Thecompleteness of the Operational and Technology Risk
profile ensures appropriate prioritisation and timeliness
ofriskdecisions, including risk acceptances with treatment
plans for risks that exceed acceptable thresholds.
The BRC is informed on adherence to Operational and
Technology RA through metrics reported for selected risks.
These metrics are monitored, and escalation thresholds are
devised based on the materiality and significance of the
risk.These Operational and Technology RA metrics are
consolidated on a regular basis and reported at the relevant
Group committees, providing senior management with the
relevant information to inform their risk decisions.
Read more on Operational and Technology Risk
onpage286
Annual Report 2025 | Standard Chartered 229
Risk review and Capital review
1 Red Team focuses on simulating real-world attacks to identify vulnerabilities and test the effectiveness of an organization’s defences, acting as adversaries
tochallenge the security measures. Purple Team enhances collaboration between the Red Team and the Blue Team (defenders) to improve threat detection,
response, and overall security posture by sharing insights and strategies from both offensive and defensive perspectives.
2 Read more on how we manage financial crime, including sanctions on page 119.
Information and Cyber Security (ICS) Risk
Mitigation
ICS Risk is managed through the ICS RTF, comprising a risk
assessment methodology and supporting policy, standards,
and methodologies. The ICS Policy and standards are aligned
to industry best practice models including the National
Institute of Standards and Technology Cyber Security
Framework. ISO 27001, Payment Card Industry-Data Security
Standard (PCI-DSS), Swift Customer Security Controls
Framework (CSCF) and Legal, Regulatory and Mandatory
(LRM) requirements. We undertake an annual ICS
Effectiveness Review to evaluate ICS Risk management
practices in alignment with the ERMF.
Monitoring
The Group Chief Information Security Officer (CISO) function
monitors the evolving threat landscape covering cyber threats,
attack vectors and threat actors that could target the Group.
This includes performing a threat-led risk assessment to
identify key threats, in-scope applications and key controls
required to ensure the Group remains within RA.
The ICS Risk profiles of all businesses, functions and countries
are consolidated to present a holistic Group-level ICS Risk
profile for ongoing monitoring. During these reviews, the
status of each risk is assessed against the Group’s controls
toidentify any changes to impact and likelihood, which
affects the overall risk rating.
ICS Board level responsibility and oversight is assured through
the BRC. The Board education programme includes updates
on the cyber security strategy, which is in place at a Group
and Business level to adhere tointernal standards and
applicable laws andregulations.
ICS Risk Security Testing and External Reviews
The Group assesses its cyber posture through extensive
control testing and by executing offensive security testing
exercises, including independent vulnerability analysis and
testing, code reviews, penetration tests and Red and Purple
Team
1
attack simulation testing. This approach constantly
tests the Group’s defences and approach to cyber security.
These show a wider picture of the Group’s risk profile, leading
to better visibility on potential ‘in flight’ risks.
We perform independent third-party verification regarding
the state of our internal information technology and ICS
controls through industry recognised certifications
andattestations:
• PCI DSS controls are assessed annually, in line with market
regulatory requirements.
• We are System and Organisation Controls 2 type 2
certified, the scope of which covers the digital products
and services to financial markets, global banking, cross
products, cash management, trade finance, securities
services and client services group using the Straight2Bank
application suite.
• We undergo assessment based on the requirements
stipulated by Swift’s Customer Security Programme (CSP)
to ensure high compliance.
The Group also tracks remediation of security matters
identified by external reviews, such as the BoE CBEST Threat
Intelligence-Led Assessment and the Hong Kong Monetary
Authority’s (HKMA) Intelligence-led Cyber Attack Simulation
Testing (iCAST).
The CISO and OTCR functions monitor the ICS Risk profile and
ensure that breaches of RA are escalated to the appropriate
governance committee or authority levels for remediation
and tracking.
Financial Crime Risk
2
Roles and responsibilities
The Group Head, CFCR is the Group’s Chief Compliance
andMoney-Laundering Reporting Officer and performs
theFinancial Conduct Authority (FCA) Senior Management
Control Functions SMF 16 and SMF 17 in accordance with
requirements set out by the FCA, including those set out
intheSystems and Controls chapter of the FCA Handbook.
Mitigation
The CFCR function is responsible for the establishment and
maintenance of policies, standards, and oversight of first
lineof defence controls to ensure continued compliance
withfinancial crime laws and regulations, and the mitigation
ofFinancial Crime Risk. This includes controls covering key
financial crime risks such as money laundering, terrorist
financing, sanctions compliance, bribery and corruption, and
fraud. We mitigate these risks through core controls such as
client due-diligence, sanctions screening and other risk-based
measures, supported by ongoing efforts to build awareness
and capability across our people. In this, the requirements
ofthe Operational and Technology RTF are followed
toensure a consistent approach to the management
ofprocesses and controls.
Financial Crime Risk management is built on a risk-based
approach, meaning the risk management plans, processes,
activities, and resource allocations are determined according
to the level of risk.
Monitoring
The Group monitors enterprise-wide financial crime
risksthrough the Financial Crime Risk Assessment. This is
undertaken annually to assess the inherent financial crime
risk exposures and the associated processes and controls
bywhich these exposures are mitigated. As part of this, the
Group monitors sanctions compliance risk, reflecting changes
in global sanctions requirements and developments across
an increasingly complex sanctions landscape.
The controls designed to mitigate Financial Crime Risk in
business operations are governed in line with the Operational
and Technology RTF. The Group has a monitoring and
reporting process in place for Financial Crime Risk, which
includes escalation and reporting to the CFCR and relevant
Country, Business, Senior Management and Board committees.
Principal risks
Standard Chartered | Annual Report 2025230
While not a formal governance committee, the CFCR
Oversight Group provides oversight of CFCR risks including
the effective implementation of the Financial Crime RTF.
Italso provides oversight, challenge and direction to CFCR
policy owners on material changes and positions taken in
CFCR-owned policies, including issues relating to regulatory
interpretation and the Group’s Financial Crime Risk RA.
Compliance Risk
Roles and responsibilities
The Group Head, CFCR is the Group’s Chief Compliance
andMoney-Laundering Reporting Officer and performs
theFCA Senior Management Control Functions SMF 16 and
SMF 17 inaccordance with requirements set out by the FCA,
includingthose set out in the Systems and Controls chapter
ofthe FCA Handbook.
All activities that the Group engages in must comply with the
relevant country/local specific and extraterritorial regulations.
Compliance Risk includes the risks associated with a failure
tocomply with all regulations that are applicable to the
Group regardless of the issuing regulatory authority. Where
Compliance Risk arises, or could arise, from failure to manage
another PRT, the oversight and management processes for
that specific PRT must be followed, to ensure that effective
oversight and challenge of the first line of defence can be
provided by the appropriate second line of defence function.
Areas of regulation can be broadly divided into two distinct
categories: those issued by financial service regulatory
authorities and those issued by non-financial service
regulators. The Group is exposed to both categories of
regulation, and roles and responsibilities differ depending
onthe category. For regulations issued by financial services
regulatory authorities and other regulators that may issue
regulations pertaining to Compliance Risk, CFCR identifies
new and amended regulations as and when issued and
communicates the relevant regulatory obligations to the
country RFO. Where regulatory obligations do not relate
torisks for which CFCR is the RFO, the respective RTF sets
outsecond line of defence ownership.
Each of the assigned second line of defence functions have
responsibilities, including monitoring relevant regulatory
developments from non-financial services regulators
atbothGroup and country levels, policy development,
implementation, and validation as well as oversight and
challenge of first line of defence processes and controls.
Mitigation
The CFCR function is responsible for the establishment and
maintenance of policies, standards, and oversight of the first
line of defence controls to ensure compliance with laws and
regulations, and the mitigation of Compliance Risk. In this,
therequirements of the Operational and Technology RTF
arefollowed to ensure a consistent approach to the
management of processes and controls.
Monitoring
The monitoring of controls designed to mitigate the risk
ofregulatory non-compliance in processes is governed in line
with the Operational and Technology RTF. Compliance Risk
reporting includes escalation and reporting to the CFCR and
relevant Country, Business, Senior Management and BRC.
While not a formal governance committee, the CFCR
Oversight Group provides oversight of CFCR risks including
the effective implementation of the Compliance RTF, and
oversight, challenge and direction to CFCR policy owners
onmaterial changes and positions taken in CFCR-owned
policies, including issues relating to regulatory interpretation
and the Group’s Compliance Risk RA. The Regulatory Change
Oversight Forum provides visibility and oversight of material
and/or complex large-scale regulatory change impacting
non-financial risks.
Environmental, Social and Governance
andReputational (ESGR) Risk
Mitigation
The ESGR RTF provides the overall risk management
approach for ESGR 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 perception arising
from client onboarding 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 (CRA).
Annual Report 2025 | Standard Chartered 231
Risk review and Capital review
Vendors that are identified as high risk which meet
thehigh-risk category and 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 portfolios. 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 regard 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 with clients with high
transition and/or high physical risk.
Our Net Zero Climate Risk Working Forum meets at least
quarterly 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 materially
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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.
Model Risk
Mitigation
The Model Risk Policy and Standards define requirements
formodel development, validation, implementation and use,
including regular model performance monitoring and, where
required, model risk mitigants.
Model deficiencies identified through the development or
validation process, or model performance issues identified
through ongoing monitoring, are mitigated through respective
model risk mitigants. Mitigants include model overlays
aseither post-model adjustments (PMAs) or management
adjustments, model restrictions and potentially a model
recalibration or redevelopment, all of which undergo
independent review, challenge, and approval. PMAs are
usedto address observed deficiencies caused from within
themodel, by adjusting the model output either directly
orindirectly (e.g. adjusting parameters).
Where a PMA is applied as a mitigant for a model used
inPillar 1 or Pillar 2 calculations or models with material
impact on financial accounting disclosures (e.g. IFRS 9),
theindependent review must be performed by Group Model
Validation (GMV) with sign-off from the Model Approver
prior to implementation. Management adjustments are
usedto address issues by applying management decisions
without adjusting a direct modelling component.
As with all PRTs, operational controls are used to govern all
Model Risk-related processes, with regular risk assessments
performed to assess appropriateness and effectiveness of
those controls, in line with the Operational and Technology
RTF, with remediation plans implemented where necessary.
Group Model Risk Policy and Standards also define
requirements for Deterministic Quantitative Methods
(DQMs)that are used as part of an end-to-end modelled
process. DQMs are similar in nature to a model, however the
processing component is either purely deterministic or has an
element of expert judgement. Unlike a model, there is no use
of statistical, economic, financial or mathematical theories.
Monitoring
The Group monitors Model Risk via a set of RA metrics.
Adherence to Model RA and any threshold breaches are
reported to the BRC, GRC and MRC. These metrics and
thresholds are reviewed twice per year to ensure that
threshold calibration remains appropriate, and the themes
adequately cover the current risks.
Models undergo regular performance monitoring based
ontheir level of perceived Model Risk, with monitoring results
presented, and breaches escalated to the Model Sponsor,
Model Owner, GMV and respective MRC or Individual
Delegated Model Approvers. In addition, all models are
subject to periodic revalidation, with frequency and intensity
of the revalidation work determined by the materiality and
uncertainty of the model.
Model Risk management produces Model Risk reports
covering the model landscape, which include performance
metrics, identified model issues and remediation plans.
Theseare presented for discussion at the Model Risk
governance committees on a regular basis.
Principal risks
Standard Chartered | Annual Report 2025232
Credit Risk (audited)
Staging of financial instruments
Financial instruments that are not already credit-impaired
are originated into stage 1 and a 12-month ECL provision
isrecognised.
Instruments will remain in stage 1 until they are repaid, unless
they experience significant credit deterioration (stage 2)
orthey become credit-impaired (stage 3).
Instruments will transfer to stage 2 and a lifetime ECL
provision is recognised when there has been a significant
change in the Credit Risk compared to what was
expectedatorigination.
The framework used to determine a Significant Increase
inCredit Risk (SICR) is set out below.
Basis of preparation
Unless otherwise stated, the balance sheet and income
statement information presented within this section is based
on the booking location. The accounting policy for the
presentation of geographic information has been changed
from being based on a management view which was
principally the location from which a client relationship
ismanaged, to being based on a view reflecting the location
inwhich exposures are financially booked in 2025. Read more
in Note 1 to the financial statements. Prior period amounts
have been re-presented in line with this change with the
impact presented in Note 40 to the financial statements.
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 16 ‘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 contractual 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 342 and the IFRS 9 ECL
methodology on page 264.
IFRS 9 ECL principles and approaches
The main methodology principles and approach adopted by the Group are set out in the following table.
Title Supplementary Information Page
Approach for determiningECL • IFRS 9 ECL methodology 264
• Application of lifetime ECL 264
Key assumptions and
judgements indeterminingECL
• Incorporation of forward-looking information 266
• Forecast of key macroeconomic variables underlying the ECL
calculation and the impact of non-linearity
266
• Impact of multiple economic scenarios 269
• Judgemental adjustments and management overlays 270
• Sensitivity of ECL calculation to macroeconomic variables 271
Significant Increase
inCreditRisk (SICR)
• Quantitative and Qualitative criteria 274
Credit-impaired (or defaulted)
exposures (Stage 3)
• Expert credit judgement 344
Transfers betweenstages • Movement in gross exposures and credit impairment 246
Modified financial assets • Forborne and other modified loans 254
Governance of PMAs and
application of expert credit
judgement in respect of ECL
• IFRS 9 Impairment Committee 275
Stage 1
• 12-month ECL
• Performing
Stage 2
• Lifetime ECL
• Performing but has exhibited SICR
Stage 3
• Credit-impaired
• Non-performing
Annual Report 2025 | Standard Chartered 233
Risk review and Capital review
Credit Risk (audited)
Summary of Credit Risk Performance
Maximum Exposure
The Group’s on-balance sheet maximum exposure to Credit
Risk increased by $43.2 billion to $866.6 billion (31 December
2024: $823.4 billion). Cash and balances at Central banks
increased by $14.3 billion to $77.7 billion (31 December 2024:
$63.4 billion) reflecting deposit growth in Greater China
andNorth Asia requiring a corresponding increase in
statutory reserve placements, and increased unrestricted
balances driven by funding inflows and high-quality liquid
assetdeployment.
Debt securities (not held at fair value through profit or loss)
increased by $22.2 billion to $165.8 billion (31 December 2024:
$143.6 billion) due to deployment of excess surplus and
liquidity buffer purposes. Loans and advances to customers
increased by $5.8 billion to $286.8 billion (31 December 2024:
$281.0 billion), which comprises of a $3.0 billion increase in
CIB, $9.1 billion increase in WRB and Ventures, offset by
$7.1 billion decrease in Central and other items. Fair value
through profit and loss increased by $14.1 billion to
$186.2 billion (31 December 2024: $172.0 billion), largely due
toan increase in treasury bills and in loans to customers in
thefinancing, insurance and non-banking and commercial
real estate sectors.
Derivative financial instruments decreased by $15.7 billion
to$65.8 billion (31 December 2024: $81.5 billion) mainly
duetothe weakening of the US dollar. Off-balance sheet
instruments increased by $40.3 billion to $313.4 billion
(31 December 2024: $273.2 billion), due to an increase
inundrawn commitments, financial guarantees and other
equivalents driven by client demand.
Read more on ‘Maximum exposure to Credit Risk’ on page
236; ‘Credit quality by client segment’ on page 238
Loans and Advances
The Group continues to focus on high-quality origination with
95 per cent (31 December 2024: 94 per cent) of the Group’s
gross loans and advances to customers classified as stage 1.
Stage 1 gross loans and advances to customers increased by
$6.0 billion to $275.1 billion (31 December 2024: $269.1 billion).
CIB gross stage 1 balances increased by $4.1 billion to
$132.8 billion (31 December 2024: $128.7 billion) across
severalsectors including transport, telecom and utilities and
commercial real estate. WRB and Ventures gross stage 1
balances increased by $8.9 billion to $127.3 billion
(31 December 2024: $118.4 billion), mainly due to a $5.3 billion
increase in the mortgage portfolio across Korea and
Singapore and $5.2 billion increase in secured wealth
products due to higher demand in Singapore and Hong
Kong. Central and other items, gross stage 1 balances
decreased by $7.0 billion to $15.0 billion (31 December 2024:
$22.0 billion) primarily due to maturity of placements held
with the Monetary Authority of Singapore.
Stage 2 gross loans and advances to customers decreased by
$0.8 billion to $9.8 billion (31 December 2024: $10.6 billion). CIB
gross stage 2 balances decreased by $0.8 billion to $7.9 billion
(31 December 2024: $8.6 billion), largely due to lower balances
in the financing, insurance and non-banking sector from
asovereign portfolio upgrade. WRB and Ventures gross stage
2 loans and advances to customers balances remained stable
at $2.0 billion (31 December 2024: $2.0 billion).
Stage 3 gross loans and advances decreased by $0.2 billion
to $6.0 billion (31 December 2024: $6.2 billion) primarily in CIB
due to restructuring related write-offs in the China commercial
real estate sector offset by a downgrade in the government
sector. This also contributed to a reduction in the CIB stage
3cover ratio before collateral. The total stage 3 cover
ratioreduced by 11.8 per cent to 51.8 per cent (31 December
2024: 63.6 per cent) of which around 8 per cent was related
toCRE restructuring and 7 per cent was related to downgrades
with low levels of coverage, where strong credit mitigants are
in place. This was partially offset by other portfolio movements.
The total stage 3 cover ratio post tangible collateral
decreased to 68.4 per cent (31 December 2024: 77.8 per cent)
with some of the downgrades being covered by guarantees
and insurance which are not included as tangible collateral.
The WRB stage 3 cover ratio after collateral increased to
88.5per cent (31 December 2024: 83.1 per cent) driven by an
increase in credit impairment provisions and collateral values.
Read more on ‘Analysis of financial instruments by stage’
onpage 237; ‘Credit quality by client segment’ on page 238;
‘Credit quality by industry’ on page 258
Analysis of Stage 2
The proportion of CIB exposures in stage 2 due to
quantitative factors decreased mainly due to model changes
and asovereign portfolio upgrade. In Central and other items,
balances reduced to $1.7 billion (31 December 2024: $2.1 billion)
primarily due to a sovereign upgrade and portfolio movements.
Read more on ‘Credit quality by client segment’ on page
238; ‘Analysis of stage 2 balances’ on page 253; SICR
quantitative and qualitative criteria on page 274
Credit Impairment charges
The Group’s ongoing credit impairment was a net charge
of$676 million (31 December 2024: $557 million).
WRB contributed a net charge of $595 million (31 December
2024: $623 million) which is mainly driven by unsecured
products as per normalised flow and provisions for stressed
assets. The year-on-year decrease was due to portfolio
quality improvements and a reduction in unsecured
exposures which is in line with our strategic pivot to affluent.
Standard Chartered | Annual Report 2025234
CIB contributed a net charge of $4 million (31 December 2024:
$120 million release). The increase was mainly due to portfolio
movements, higher judgemental overlays, and lower releases
compared to 2024. Ventures had a charge of $59 million
(31 December 2024: $73 million) as delinquency rates have
improved following a change in credit underwriting criteria.
Central and other items contributed a net charge of
$18 million (31 December 2024: $19 million release), which
included the impact of model updates in 2025.
Read more on ‘Financial review‘ on page 57;
‘Creditimpairment charge’ on page 254
Commercial Real Estate (CRE)
The Group provides loans to CRE and data centres
counterparties of which $10 billion
1
is to counterparties in the
CIB segment where thesource of repayment is substantially
derived from rental orsale of real estate and is secured by
real estate collateral. Theremaining CRE loans comprise
working capital loans toreal estate corporates, loans with
non-property collateral, unsecured loans and loans to real
estate entities of diversified conglomerates. The average
loan-to-value (LTV) ratio of the performing book CRE
portfolio remained stable at 54 per cent (31 December
2024: 54 per cent). The proportion of loans with an LTV
greater than 80 per cent has increased to 6 per cent
(31 December 2024: 4 per cent).
Total on and off-balance sheet exposure to China CRE
decreased by $1.2 billion to $0.8 billion (31 December 2024:
$2.0 billion) mainly from restructuring related write-offs and
exposure reductions which also reduced stage 3 exposure
to$0.4 billion (31 December 2024: $1.3 billion) and stage 3
provision coverage to 67 per cent (31 December 2024: 87
percent). TheGroup continues to hold a judgemental
management overlay, which decreased by $34 million
to$36 million (31 December 2024: $70 million) due to
repayments and utilisation during the year. The Group
isfurther indirectly exposed to China CRE through its
associate investment inChina Bohai Bank.
The Group’s loans and advances to Hong Kong CRE clients
decreased by $1.0 billion to $1.5 billion (31 December 2024:
$2.5 billion), due to repayments. 32 per cent (31 December
2024: 21 per cent) were in stage 2 and 6 per cent
(31 December 2024: nil) in stage 3. Within stage 2, $0.4 billion
(31 December 2024: nil) is rated as CG12. The portfolio is 86
per cent (31 December 2024: 82 per cent) secured with an
average LTV of below 50 per cent (31 December 2024: below
40 per cent) and continues to be subject to proactive risk
management with close monitoring of valuations and regular
stress tests. TheGroup continues to hold a judgemental
management overlay, which decreased by $11 million
to$47 million (31 December 2024: $58 million) due
torepayments and upgrades.
Read more on ‘Judgemental management overlays’
onpage 271
High carbon sectors
The Group’s high carbon sectors exposure has increased
by$5.4 billion to $43.1 billion (31 December 2024: $37.7 billion)
due to the oil and gas, CRE and power sectors. High carbon
sector exposure is at 12.6 per cent of the Group’s maximum
exposure (31 December 2024: 11.8 per cent).
Oil and gas exposure has increased by $2.0 billion to
$9.5 billion (31 December 2024: $7.4 billion) due to an
increasein short-term trade products, increased lending
togas infrastructure projects, and increased Carbon Capture,
Utilisation and Storage (CCUS) exposure.
CRE and power exposures have increased by $3 billion to
$17 billion (31 December 2024: $14 billion) due to the growth
ofthese sectors. Power continues to show a positive growth
inlower carbon generation, through renewables financing,
carbon efficient gas and the run-down of coal generation.
The increase in high carbon exposure does not directly
translate into higher emissions intensity, as the exposure
includes lending to both higher and lower emissions intensity
counterparties, including sustainable finance and transition
finance lending.
Read more on the emissions profile of all high carbon sectors
on page 92; ‘High carbon sectors’ exposure on page 260;
2030 targets and progress against those targets onpage91
1 The Group’s CRE net nominal exposure, adjusted for non-property collateral.
Annual Report 2025 | Standard Chartered 235
Risk review and Capital review
Credit Risk (audited)
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 on ‘Summary of Credit Risk performance’ on page 234
2025 2024
Credit risk management Credit risk management
Maximum
exposure
$million
Collateral
8
$million
Master
netting
agreements
$million
Net
Exposure
$million
Maximum
exposure
$million
Collateral
8
$million
Master
netting
agreements
$million
Net
exposure
$million
On-balance sheet
Cash and balances at central banks 77,746 – – 77,746 63,447 – – 63,447
Loans and advances to banks
1
43,901 3,724 – 40,177 43,593 2,946 – 40,647
Of which – reverse repurchase
agreements and other similar
securedlending 3,724 3,724 – – 2,946 2,946 – –
Loans and advances to customers
1
286,788 134,253 – 152,535 281,032 119,047 – 161,985
Of which – reverse repurchase
agreements and other similar
securedlending 8,242 8,242 – – 9,660 9,660 – –
Investment securities – Debt securities
andother eligible bills
2,3
165,753 – – 165,753 143,562 – – 143,562
Fair value through profit or loss
4
186,173 84,130 – 102,043 172,031 86,195 – 85,836
Loans and advances to banks 2,984 – – 2,984 2,213 – – 2,213
Loans and advances to customers 12,355 – – 12,355 7,084 – – 7,084
Reverse repurchase agreements and
other similar lending 84,130 84,130 – – 86,195 86,195 – –
Investment securities – Debt securities
and other eligible bills
4
86,704 – – 86,704 76,539 – – 76,539
Derivative financial instruments
5
65,782 14,168 44,712 6,902 81,472 15,005 60,280 6,187
Accrued income 2,631 – – 2,631 2,776 – – 2,776
Assets held for sale
9
1,042 – – 1,042 889 – – 889
Other assets
6
36,770 – – 36,770 34,585 – – 34,585
Total balance sheet 866,586 236,275 44,712 585,599 823,387 223,193 60,280 539,914
Off-balance sheet
7
Undrawn Commitments 199,245 3,513 – 195,732 182,529 2,489 – 180,040
Financial Guarantees and other
equivalents 114,193 3,214 – 110,979 90,632 1,807 – 88,825
Total off-balance sheet 313,438 6,727 – 306,711 273,161 4,296 – 268,865
Total 1,180,024 243,002 44,712 892,310 1,096,548 227,489 60,280 808,779
1 Amounts are net of ECL provisions. An analysis of credit quality is set out in the credit quality analysis section (page 239). Further details of collateral held by client
segment and stage are set out in the collateral analysis section (page 255). The Group also has credit mitigation through Credit Default Swaps and Credit Linked
Notes as set out on page 257.
2 Excludes equity and other investments of $1,203 million (31 December 2024: $994 million). Further details are set out in Note 13 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 $9,084 million (31 December 2024: $5,486 million). Further details are set out in Note 13 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 Hong Kong certificates of indebtedness, cash collateral, and acceptances, in addition to unsettled trades and other financial assets.
7 Excludes ECL provisions of $224 million (31 December 2024: $255 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.
9 The amount is after ECL provisions. Further details are set out in Note 21 Assets held for sale and associated liabilities.
Standard Chartered | Annual Report 2025236
Analysis of financial instruments by stage (audited)
The table below presents the gross and credit impairment balances by stage for the Group’s amortised cost and FVOCI
financial instruments as at 31 December 2025.
Read more on ‘Summary of Credit Risk performance’ on page 234
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 76,520 – 76,520 463 (1) 462 773 (9) 764 77,756 (10) 77,746
Loans and advances
tobanks (amortised cost) 43,608 (6) 43,602 217 (1) 216 90 (7) 83 43,915 (14) 43,901
Loans and advances
tocustomers (amortisedcost) 275,062 (528) 274,534 9,823 (446) 9,377 5,964 (3,087) 2,877 290,849 (4,061) 286,788
Debt securities and other
eligible bills
5
164,283 (56) 1,198 (5) 296 (5) 165,777 (66)
Amortised cost 57,005 (22) 56,983 243 (2) 241 26 – 26 57,274 (24) 57,250
FVOCI
2
107,278 (34) 955 (3) 270 (5) 108,503 (42) –
Accrued income
(amortisedcost)
4
2,631 2,631 – – 2,631 – 2,631
Assets held forsale 1,053 (22) 1,031 8 – 8 8 (5) 3 1,069 (27) 1,042
Other assets
4
36,769 – 36,769 – – – 7 (6) 1 36,776 (6) 36,770
Undrawn commitments
3
195,032 (49) 4,208 (33) 5 (2) 199,245 (84)
Financial guarantees, trade
credits and irrevocable
letterof credits
3
112,091 (26) 1,511 (16) 591 (98) 114,193 (140)
Total 907,049 (687) 17,428 (502) 7,734 (3,219) 932,211 (4,408)
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 originated credit-impaired debt securities with impairment of $5 million.
2024
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 62,597 – 62,597 432 (4) 428 426 (4) 422 63,455 (8) 63,447
Loans and advances
tobanks (amortised cost) 43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593
Loans and advances to
customers (amortised cost) 269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032
Debt securities and other
eligible bills
5
141,862 (23) 1,614 (4) 103 (2) 143,579 (29)
Amortised cost 54,637 (15) 54,622 475 (2) 473 42 – 42 55,154 (17) 55,137
FVOCI
2
87,225 (8) 1,139 (2) 61 (2) 88,425 (12)
Accrued income
(amortisedcost)
4
2,776 2,776 – – 2,776 – 2,776
Assets held for sale 840 (7) 833 38 – 38 58 (45) 13 936 (52) 884
Other assets
4
34,585 – 34,585 – – – 3 (3) – 34,588 (3) 34,585
Undrawn commitments
3
178,516 (50) 4,006 (52) 7 (1) 182,529 (103)
Financial guarantees, trade
credits and irrevocable
letterof credits
3
87,991 (16) 2,038 (7) 603 (129) 90,632 (152)
Total 821,477 (589) 19,077 (541) 7,486 (4,137) 848,040 (5,267)
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 $59 million originated credit-impaired debt securities with impairment of Nil.
Annual Report 2025 | Standard Chartered 237
Risk review and Capital review
Credit Risk (audited)
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. Consumer and Business Banking portfolios are analysed by days past due and Private Banking
by the type of collateral held.
Mapping of credit quality
The Group uses the following internal risk mapping to determine the credit quality for loans.
Credit
quality
description
Corporate & Investment Banking Private Banking
1
Wealth & Retail
Banking
4
Internal grade
mapping
S&P external
ratings equivalent
Regulatory
PDrange (%) Internal ratings
Internal grade
mapping
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+ to 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 on ‘Summary of Credit Risk performance’ on page 234
Standard Chartered | Annual Report 2025238
Loans and advances by client segment (audited)
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 43,608 132,772 124,657 2,649 14,984 275,062 195,032 112,091
• Strong 31,257 94,399 119,351 2,628 14,228 230,606 176,123 67,184
• Satisfactory 12,351 38,373 5,306 21 756 44,456 18,909 44,907
Stage 2 217 7,859 1,903 61 – 9,823 4,208 1,511
• Strong 42 1,767 1,414 39 – 3,220 1,340 351
• Satisfactory 172 4,984 154 8 – 5,146 2,662 1,052
• Higher risk 3 1,108 335 14 – 1,457 206 108
Of which (stage 2):
• Less than 30 days past due – 86 154 8 – 248 – –
• More than 30 days past due 3 158 335 14 – 507 – –
Stage 3, credit-impaired financial assets 90 4,201 1,723 38 2 5,964 5 591
Gross balance
1
43,915 144,832 128,283 2,748 14,986 290,849 199,245 114,193
Stage 1 (6) (128) (346) (42) (12) (528) (49) (26)
• Strong (2) (59) (304) (39) (12) (414) (28) (12)
• Satisfactory (4) (69) (42) (3) – (114) (21) (14)
Stage 2 (1) (310) (114) (22) – (446) (33) (16)
• Strong (1) (4) (79) (13) – (96) (4) –
• Satisfactory – (217) (12) (3) – (232) (20) (9)
• Higher risk – (89) (23) (6) – (118) (9) (7)
Of which (stage 2):
• Less than 30 days past due – (9) (12) (3) – (24) – –
• More than 30 days past due – (1) (23) (6) – (30) – –
Stage 3, credit-impaired financial assets (7) (2,214) (846) (25) (2) (3,087) (2) (98)
Total credit impairment (14) (2,652) (1,306) (89) (14) (4,061) (84) (140)
Net carrying value 43,901 142,180 126,977 2,659 14,972 286,788
Stage 1 0.0% 0.1% 0.3% 1.6% 0.1% 0.2% 0.0% 0.0%
• Strong 0.0% 0.1% 0.3% 1.5% 0.1% 0.2% 0.0% 0.0%
• Satisfactory 0.0% 0.2% 0.8% 14.3% 0.0% 0.3% 0.1% 0.0%
Stage 2 0.5% 3.9% 6.0% 36.1% 0.0% 4.5% 0.8% 1.1%
• Strong 2.4% 0.2% 5.6% 33.3% 0.0% 3.0% 0.3% 0.0%
• Satisfactory 0.0% 4.4% 7.8% 37.5% 0.0% 4.5% 0.8% 0.9%
• Higher risk 0.0% 8.0% 6.9% 42.9% 0.0% 8.1% 4.4% 6.5%
Of which (stage 2):
• Less than 30 days past due 0.0% 10.5% 7.8% 37.5% 0.0% 9.7% 0.0% 0.0%
• More than 30 days past due 0.0% 0.6% 6.9% 42.9% 0.0% 5.9% 0.0% 0.0%
Stage 3, credit-impaired financial
assets(S3) 7.8% 52.7% 49.1% 65.8% 100.0% 51.8% 40.0% 16.6%
• Stage 3 Collateral – 314 678 – – 992 – 56
• Stage 3 Cover ratio (after collateral) 7.8% 60.2% 88.5% 65.8% 100.0% 68.4% 40.0% 26.1%
Cover ratio 0.0% 1.8% 1.0% 3.2% 0.1% 1.4% 0.0% 0.1%
Fair value through profit or loss
Performing 36,580 62,780 2 1 – 62,783 – –
• Strong 28,277 39,351 2 1 – 39,354 – –
• Satisfactory 8,303 23,429 – – – 23,429 – –
• Higher risk – – – – – – – –
Impaired (CG13-14) 92 14 – – – 14 – –
Gross balance (FVTPL)
2
36,672 62,794 2 1 – 62,797 – –
Net carrying value (incl FVTPL) 80,573 204,974 126,979 2,660 14,972 349,585 – –
1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $8,242 million under Customers and of $3,724 million under
Banks, held at amortised cost.
Loans and advances includes reverse repurchase agreements and other similar secured lending of $50,443 million under
Customers and of $33,689 million under Banks, held at fair value through profit or loss.
Annual Report 2025 | Standard Chartered 239
Risk review and Capital review
Credit Risk (audited)
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 43,208 128,746 117,015 1,383 21,958 269,102 178,516 87,991
• Strong 31,239 90,725 111,706 1,367 21,540 225,338 162,574 56,070
• Satisfactory 11,969 38,021 5,309 16 418 43,764 15,942 31,921
Stage 2 318 8,643 1,905 48 35 10,631 4,006 2,038
• Strong 8 1,229 1,413 31 – 2,673 994 471
• Satisfactory 125 6,665 155 6 – 6,826 2,862 1,403
• Higher risk 185 749 337 11 35 1,132 150 164
Of which (stage 2):
• Less than 30 days past due – 55 155 6 – 216 – –
• More than 30 days past due 2 7 337 11 – 355 – –
Stage 3, credit-impaired financial assets 83 4,476 1,617 12 98 6,203 7 603
Gross balance
1
43,609 141,865 120,537 1,443 22,091 285,936 182,529 90,632
Stage 1 (10) (80) (383) (20) – (483) (50) (16)
• Strong (7) (28) (325) (18) – (371) (33) (7)
• Satisfactory (3) (52) (58) (2) – (112) (17) (9)
Stage 2 (1) (303) (147) (23) – (473) (52) (7)
• Strong – (41) (70) (14) – (125) (10) –
• Satisfactory (1) (218) (32) (3) – (253) (32) (4)
• Higher risk – (44) (45) (6) – (95) (10) (3)
Of which (stage 2):
• Less than 30 days past due – (1) (32) (3) – (36) – –
• More than 30 days past due – – (45) (6) – (51) – –
Stage 3, credit-impaired financial assets (5) (3,178) (759) (11) – (3,948) (1) (129)
Total credit impairment (16) (3,561) (1,289) (54) – (4,904) (103) (152)
Net carrying value 43,593 138,304 119,248 1,389 22,091 281,032 – –
Stage 1 0.0% 0.1% 0.3% 1.4% 0.0% 0.2% 0.0% 0.0%
• Strong 0.0% 0.0% 0.3% 1.3% 0.0% 0.2% 0.0% 0.0%
• Satisfactory 0.0% 0.1% 1.1% 12.5% 0.0% 0.3% 0.1% 0.0%
Stage 2 0.3% 3.6% 7.7% 47.9% 0.0% 4.4% 1.3% 0.3%
• Strong 0.0% 3.3% 5.0% 45.2% 0.0% 4.7% 1.0% 0.0%
• Satisfactory 0.8% 3.3% 20.6% 50.0% 0.0% 3.7% 1.1% 0.3%
• Higher risk 0.0% 5.9% 13.4% 54.5% 0.0% 8.4% 6.7% 1.8%
Of which (stage 2):
• Less than 30 days past due 0.0% 1.8% 20.6% 50.0% 0.0% 16.7% 0.0% 0.0%
• More than 30 days past due 0.0% 0.0% 13.4% 54.5% 0.0% 14.4% 0.0% 0.0%
Stage 3, credit-impaired financial
assets(S3) 6.0% 71.0% 46.9% 91.7% 0.0% 63.6% 14.3% 21.4%
• Stage 3 Collateral 1 297 584 – – 881 – 46
• Stage 3 Cover ratio (after collateral) 7.2% 77.6% 83.1% 91.7% 0.0% 77.8% 14.3% 29.0%
Cover ratio 0.0% 2.5% 1.1% 3.7% 0.0% 1.7% 0.1% 0.2%
Fair value through profit or loss
Performing 36,967 58,506 6 – – 58,512 – –
• Strong 30,799 38,084 3 – – 38,087 – –
• Satisfactory 6,158 20,314 3 – – 20,317 – –
• Higher risk 10 108 – – – 108 – –
Impaired (CG13-14) – 13 – – – 13 – –
Gross balance (FVTPL)
2
36,967 58,519 6 – – 58,525 – –
Net carrying value (incl FVTPL) 80,560 196,823 119,254 1,389 22,091 339,557 – –
1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $9,660 million under Customers and of $2,946 million under
Banks, held at amortised cost.
2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $51,441 million under Customers and of $34,754 million under
Banks, held at fair value through profit or loss.
Standard Chartered | Annual Report 2025240
Loans and advance analysis by client segment, credit quality and key geography
Credit grade
Regulatory 1 year
PDrange (%)
S&P external
ratingsequivalent
2025
Corporate & Investment Banking and Central & other items
Gross Credit impairment
Stage 1
$million
Stage 2
$million
Stage 3
$million
Total
$million
Stage 1
$million
Stage 2
$million
Stage 3
$million
Total
$million
Strong 108,627 1,767 – 110,394 (71) (4) – (75)
1A-2B 0 – 0.045 A+ and above 27,495 71 – 27,566 (14) – – (14)
3A-4A 0.046 – 0.110 A/A- to BBB+/BBB 32,856 428 – 33,284 (3) – – (3)
4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 48,276 1,268 – 49,544 (54) (4) – (58)
Satisfactory 39,129 4,984 – 44,113 (69) (217) – (286)
6A-7B 0.426 – 1.350 BB+/BB to BB- 24,871 1,564 – 26,435 (16) (26) – (42)
8A-9B 1.351 – 4.000 BB-/B+ to B 9,738 1,758 – 11,496 (36) (125) – (161)
10A-11C 4.001 – 15.75 B/B- to B-/CCC+ 4,520 1,662 – 6,182 (17) (66) – (83)
Higher risk – 1,108 – 1,108 – (89) – (89)
12 15.751 – 99.999 CCC/C – 1,108 – 1,108 – (89) – (89)
Credit-impaired – – 4,203 4,203 – – (2,216) (2,216)
13-14 100 Impaired – – 4,203 4,203 – – (2,216) (2,216)
Total 147,756 7,859 4,203 159,818 (140) (310) (2,216) (2,666)
2024
Strong 112,265 1,229 – 113,494 (28) (41) – (69)
1A-2B 0 – 0.045 A+ and above 32,160 31 – 32,191 (2) – – (2)
3A-4A 0.046 – 0.110 A/A- to BBB+/BBB 40,712 524 – 41,236 (8) (33) – (41)
4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 39,393 674 – 40,067 (18) (8) – (26)
Satisfactory 38,439 6,665 – 45,104 (52) (218) – (270)
6A-7B 0.426 – 1.350 BB+/BB to BB- 24,928 2,677 – 27,605 (21) (24) – (45)
8A-9B 1.351 – 4.000 BB-/B+ to B 9,514 2,618 – 12,132 (20) (169) – (189)
10A-11C 4.001 – 15.75 B/B- to B-/CCC+ 3,997 1,370 – 5,367 (11) (25) – (36)
Higher risk – 784 – 784 – (44) – (44)
12 15.751 – 99.999 CCC/C – 784 – 784 – (44) – (44)
Credit-impaired – – 4,574 4,574 – – (3,178) (3,178)
13-14 100 Impaired – – 4,574 4,574 – – (3,178) (3,178)
Total 150,704 8,678 4,574 163,956 (80) (303) (3,178) (3,561)
Annual Report 2025 | Standard Chartered 241
Risk review and Capital review
Credit Risk (audited)
Undrawn commitment and financial guarantees by client segment and credit quality
Credit grade
Regulatory 1 year
PDrange (%)
S&P external
ratingsequivalent
2025
Corporate & Investment Banking and Central & other items
Notional Credit impairment
Stage 1
$million
Stage 2
$million
Stage 3
$million
Total
$million
Stage 1
$million
Stage 2
$million
Stage 3
$million
Total
$million
Strong 165,772 1,499 – 167,271 (26) (1) – (27)
1A-2B 0 – 0.045 A+ and above 30,194 344 – 30,538 (2) – – (2)
3A-4A 0.046 – 0.110 A/A- to BBB+/BBB 60,619 453 – 61,072 (5) – – (5)
4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 74,959 702 – 75,661 (19) (1) – (20)
Satisfactory 62,472 3,652 – 66,124 (32) (28) – (60)
6A-7B 0.426 – 1.350 BB+/BB to BB- 46,842 1,299 – 48,141 (16) (3) – (19)
8A-9B 1.351 – 4.000 BB-/B+ to B 11,762 1,388 – 13,150 (11) (16) – (27)
10A-11C 4.001 – 15.75 B/B- to B-/CCC+ 3,868 965 – 4,833 (5) (9) – (14)
Higher risk – 292 – 292 – (16) – (16)
12 15.751 – 99.999 CCC+/C – 292 – 292 – (16) – (16)
Credit-impaired – – 583 583 – – (100) (100)
13-14 100 Impaired – – 583 583 – – (100) (100)
Total 228,244 5,443 583 234,270 (58) (45) (100) (203)
2024
Strong 140,733 1,265 – 141,998 (22) (6) – (29)
1A-2B 0 – 0.045 A+ and above 29,623 280 – 29,903 (1) – – (1)
3A-4A 0.046 – 0.110 A/A- to BBB+/BBB 53,568 492 – 54,060 (4) – – (4)
4B-5B 0.111 – 0.425 BBB to BBB-/BB+ 57,542 493 – 58,035 (17) (6) – (23)
Satisfactory 46,394 4,200 – 50,594 (23) (33) – (56)
6A-7B 0.426 – 1.350 BB+/BB to BB- 2,544 1,065 – 3,609 (4) (6) – (10)
8A-9B 1.351 – 4.000 BB-/B+ to B 30,438 1,162 – 31,600 (11) (16) – (27)
10A-11C 4.001 – 15.75 B/B- to B-/CCC+ 13,412 1,973 – 15,385 (8) (11) – (19)
Higher risk – 286 – 286 – (11) – (11)
12 15.751 – 99.999 CCC+/C – 286 – 286 – (11) – (11)
Credit-impaired – – 593 593 – – (129) (129)
13-14 100 Impaired – – 593 593 – – (129) (129)
Total 187,127 5,751 593 193,471 (45) (50) (129) (224)
Standard Chartered | Annual Report 2025242
Loans and advances analysis by client segment, credit quality and key geography
Corporate & Investment Banking and Central & other items
2025
Gross Credit Impairment
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Total
Coverage
%
Strong
$million
Satisfactory
$million
Total
$million
Strong
$million
Satisfactory
$million
Higher
Risk
$million
Total
$million
Defaulted
$million
Total
$million
Strong
$million
Satisfactory
$million
Total
$million
Strong
$million
Satisfactory
$million
Higher
Risk
$million
Total
$million
Impaired
$million
Total
$million
Hong Kong 29,977 11,244 41,221 235 1,140 433 1,808 1,181 1,181 (19) (25) (44) – (78) (78) (156) (424) (424) (1.4)%
Corporate
Lending 15,933 4,481 20,414 215 1,127 382 1,724 546 546 (16) (20) (36) – (75) (78) (153) (384) (384) (2.5)%
Non Corporate
Lending
1
5,337 2,255 7,592 20 13 51 84 588 588 (1) (4) (5) – (3) – (3) (39) (39) (0.6)%
Banks 8,707 4,508 13,215 – – – – 47 47 (2) (1) (3) – – – – (1) (1) (0.0)%
Singapore 25,585 9,638 35,223 636 962 25 1,623 240 240 (4) (11) (15) (2) (16) – (18) (170) (170) (0.5)%
Corporate
Lending 9,996 4,552 14,548 617 849 25 1,491 162 162 (3) (9) (12) (2) (16) – (18) (159) (159) (1.2)%
Non Corporate
Lending
1
11,217 1,198 12,415 – 71 – 71 39 39 (1) (1) (2) – – – – (8) (8) (0.1)%
Banks 4,372 3,888 8,260 19 42 – 61 39 39 – (1) (1) – – – – (3) (3) (0.0)%
China 12,149 1,718 13,867 – 123 12 135 89 89 (2) (1) (3) – – – – (16) (16) (0.1)%
Corporate
Lending 4,410 1,196 5,606 – 122 12 134 87 87 (1) (1) (2) – – – – (14) (14) (0.3)%
Non Corporate
Lending
1
4,321 210 4,531 – – – – – – (1) – (1) – – – – – – (0.0)%
Banks 3,418 312 3,730 – 1 – 1 2 2 – – – – – – – (2) (2) (0.1)%
UK 16,597 7,627 24,224 52 1,300 462 1,814 868 868 – – – – (30) – (30) (371) (371) (1.5)%
Corporate
Lending 7,136 3,350 10,486 52 1,129 462 1,643 538 538 – – – – (28) – (28) (346) (346) (3.0)%
Non Corporate
Lending
1
7,028 2,188 9,216 – 87 – 87 329 329 – – – – (2) – (2) (24) (24) (0.3)%
Banks 2,433 2,089 4,522 – 84 – 84 1 1 – – – – – – – (1) (1) (0.0)%
US 20,847 3,737 24,584 431 417 – 848 298 298 (2) (3) (5) – (21) – (21) (53) (53) (0.3)%
Corporate
Lending 6,629 3,075 9,704 163 367 – 530 298 298 (1) (3) (4) – (20) – (20) (53) (53) (0.7)%
Non Corporate
Lending
1
13,681 171 13,852 258 44 – 302 – – (1) – (1) – (1) – (1) – – (0.0)%
Banks 537 491 1,028 10 6 – 16 – – – – – – – – – – – 0.0%
Others 34,729 17,516 52,245 455 1,214 179 1,848 1,617 1,617 (46) (33) (79) (3) (72) (11) (86) (1,189) (1,189) (2.4)%
Corporate
Lending 18,355 13,663 32,018 428 1,108 176 1,712 1,341 1,341 (30) (25) (55) (2) (65) (11) (78) (997) (997) (3.2)%
Non Corporate
Lending
1
4,586 2,788 7,374 14 67 – 81 275 275 (15) (7) (22) – (7) – (7) (192) (192) (2.9)%
Banks 11,788 1,065 12,853 13 39 3 55 1 1 (1) (1) (2) (1) – – (1) – – (0.0)%
Total 139,884 51,480 191,364 1,809 5,156 1,111 8,076 4,293 4,293 (73) (73) (146) (5) (217) (89) (311) (2,223) (2,223) (1.3)%
1 Include financing, insurance and non-banking corporations and governments.
Annual Report 2025 | Standard Chartered 243
Risk review and Capital review
Credit Risk (audited)
Corporate & Investment Banking and Central & other items
2024
Gross Credit Impairment
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Total
Coverage
%
Strong
$million
Satisfactory
$million
Total
$million
Strong
$million
Satisfactory
$million
Higher
Risk
$million
Total
$million
Defaulted
$million
Total
$million
Strong
$million
Satisfactory
$million
Total
$million
Strong
$million
Satisfactory
$million
Higher
Risk
$million
Total
$million
Impaired
$million
Total
$million
Hong Kong 29,643 12,079 41,722 230 1,539 64 1,833 1,308 1,308 (8) (8) (16) (33) (107) (9) (149) (1,157) (1,157) (2.9)%
Corporate
Lending 13,230 6,180 19,410 225 1,329 64 1,618 1,296 1,296 (5) (4) (9) (33) (102) (9) (144) (1,157) (1,157) (5.9)%
Non Corporate
Lending
1
4,526 2,730 7,256 4 206 – 210 12 12 (1) (3) (4) – (5) – (5) – – (0.1)%
Banks 11,887 3,169 15,056 1 4 – 5 – – (2) (1) (3) – – – – – – (0.0)%
Singapore 34,114 8,762 42,876 500 1,019 35 1,554 337 337 – (8) (8) (4) (14) – (18) (196) (196) (0.5)%
Corporate
Lending 9,545 4,457 14,002 469 658 35 1,162 265 265 – (6) (6) (4) (14) – (18) (195) (195) (1.4)%
Non Corporate
Lending
1
20,156 1,091 21,247 29 358 – 387 – – – (1) (1) – – – – – – (0.0)%
Banks 4,413 3,214 7,627 2 3 – 5 72 72 – (1) (1) – – – – (1) (1) (0.0)%
China 10,370 2,744 13,114 49 133 14 196 171 171 (3) (1) (4) – – – – (86) (86) (0.7)%
Corporate
Lending 4,934 2,143 7,077 49 133 14 196 168 168 (1) (1) (2) – – – – (83) (83) (1.1)%
Non Corporate
Lending
1
3,241 363 3,604 – – – – – – (1) – (1) – – – – – – (0.0)%
Banks 2,195 238 2,433 – – – – 3 3 (1) – (1) – – – – (3) (3) (0.2)%
UK 21,555 5,985 27,540 48 1,940 141 2,129 756 756 (10) (4) (14) – (27) (6) (33) (258) (258) (1.0)%
Corporate
Lending 2,331 2,082 4,413 47 1,433 27 1,507 658 658 (9) (3) (12) – (27) (6) (33) (237) (237) (4.3)%
Non Corporate
Lending
1
17,040 1,753 18,793 1 507 112 620 97 97 (1) (1) (2) – – – – (21) (21) (0.1)%
Banks 2,184 2,150 4,334 – – 2 2 1 1 – – – – – – – – – 0.0%
US 15,707 4,400 20,107 92 433 33 558 4 4 (4) (1) (5) (1) (1) – (2) (3) (3) (0.0)%
Corporate
Lending 5,334 2,705 8,039 77 322 – 399 1 1 (3) (1) (4) (1) (1) – (2) – – (0.1)%
Non Corporate
Lending
1
9,688 123 9,811 15 79 – 94 3 3 (1) – (1) – – – – (3) (3) (0.0)%
Banks 685 1,572 2,257 – 32 33 65 – – – – – – – – – – – 0.0%
Others 32,116 16,437 48,553 318 1,726 681 2,725 2,081 2,081 (10) (33) (43) (3) (70) (29) (102) (1,483) (1,483) (3.1)%
Corporate
Lending 21,909 12,516 34,425 291 1,030 490 1,811 1,883 1,883 (6) (26) (32) (3) (38) (28) (69) (1,333) (1,333) (3.8)%
Non Corporate
Lending
1
332 2,296 2,628 22 610 41 673 191 191 – (6) (6) – (31) (1) (32) (149) (149) (5.4)%
Banks 9,875 1,625 11,500 5 86 150 241 7 7 (4) (1) (5) – (1) – (1) (1) (1) (0.1)%
Total
2
143,505 50,407 193,912 1,237 6,790 968 8,995 4,657 4,657 (35) (55) (90) (41) (219) (44) (304) (3,183) (3,183) (1.7)%
1 Include financing, insurance and non-banking corporations and governments.
2 Amounts have been re-presented from management view to financial booking basis in line with RNS on Re-Presentation of Financial Information issued
on2 April2025. Refer to the bridge tables in Note 40 on page 424.
Standard Chartered | Annual Report 2025244
Wealth & Retail Banking and Ventures
2025
Gross Credit impairment
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Total
Coverage
%
Strong
$million
Satisfactory
$million
Total
$million
Strong
$million
Satisfactory
$million
Higher
Risk
$million
Total
$million
Defaulted
$million
Total
$million
Strong
$million
Satisfactory
$million
Total
$million
Strong
$million
Satisfactory
$million
Higher
Risk
$million
Total
$million
Impaired
$million
Total
$million
Hong Kong 43,564 220 43,784 265 64 39 368 230 230 (74) (10) (84) (32) (5) (9) (46) (77) (77) (0.5)%
Mortgages 31,375 150 31,525 70 46 12 128 67 67 (1) – (1) – – – – (3) (3) (0.0)%
Credit cards 4,332 33 4,365 112 18 23 153 19 19 (49) (5) (54) (30) (5) (9) (44) (16) (16) (2.5)%
Others 7,857 37 7,894 83 – 4 87 144 144 (24) (5) (29) (2) – – (2) (58) (58) (1.1)%
Singapore 33,327 52 33,379 448 25 32 505 347 347 (63) (17) (80) (7) (2) (7) (16) (279) (279) (1.1)%
Mortgages 15,809 12 15,821 196 18 11 225 16 16 – – – – – – – (7) (7) (0.0)%
Credit cards 2,531 25 2,556 18 7 20 45 22 22 (47) (17) (64) (5) (2) (7) (14) (17) (17) (3.6)%
Others 14,987 15 15,002 234 – 1 235 309 309 (16) – (16) (2) – – (2) (255) (255) (1.8)%
Korea 19,829 190 20,019 269 7 20 296 190 190 (23) (2) (25) (12) (2) (1) (15) (78) (78) (0.6)%
Mortgages 15,321 150 15,471 232 6 15 253 88 88 (1) – (1) (1) – – (1) (3) (3) (0.0)%
Credit cards 16 – 16 – – – – – – – – – – – – – – – 0.0%
Others 4,492 40 4,532 37 1 5 43 102 102 (22) (2) (24) (11) (2) (1) (14) (75) (75) (2.4)%
Rest of World 25,259 4,865 30,124 471 66 258 795 994 994 (183) (16) (199) (41) (6) (12) (59) (437) (437) (2.2)%
Mortgages 15,532 2,321 17,853 196 41 149 386 471 471 (4) (5) (9) (2) – (1) (3) (148) (148) (0.9)%
Credit cards 1,124 15 1,139 95 4 9 108 28 28 (21) (3) (24) (20) (1) (2) (23) (21) (21) (5.3)%
Others 8,603 2,529 11,132 180 21 100 301 495 495 (158) (8) (166) (19) (5) (9) (33) (268) (268) (3.9)%
Total 121,979 5,327 127,306 1,453 162 349 1,964 1,761 1,761 (343) (45) (388) (92) (15) (29) (136) (871) (871) (1.1)%
2024
Hong Kong 41,906 320 42,226 288 47 40 375 228 228 (59) (14) (73) (33) (20) (4) (57) (69) (69) (0.5)%
Mortgages 31,080 265 31,345 55 14 24 93 75 75 – – – – – – – (7) (7) (0.0)%
Credit cards 4,210 19 4,229 93 30 1 124 14 14 (36) (11) (47) (27) (19) (1) (47) (14) (14) (2.5)%
Others 6,616 36 6,652 140 3 15 158 139 139 (23) (3) (26) (6) (1) (3) (10) (48) (48) (1.2)%
Singapore 26,755 52 26,807 441 39 34 514 312 312 (29) (26) (55) (6) (6) (6) (18) (265) (265) (1.2)%
Mortgages 13,531 12 13,543 160 32 15 207 9 9 – – – – – – – (4) (4) (0.0)%
Credit cards 2,248 25 2,273 14 5 16 35 16 16 (9) (26) (35) (5) (5) (4) (14) (19) (19) (2.9)%
Others 10,976 15 10,991 267 2 3 272 287 287 (20) – (20) (1) (1) (2) (4) (242) (242) (2.3)%
Korea 18,062 220 18,282 378 9 22 409 112 112 (22) (1) (23) (28) (4) (1) (33) (33) (33) (0.5)%
Mortgages 13,198 171 13,369 250 8 17 275 62 62 – – – – – – – (2) (2) (0.0)%
Credit cards 36 1 37 1 – – 1 – – (1) – (1) – – – – – – (2.6)%
Others 4,828 48 4,876 127 1 5 133 50 50 (21) (1) (22) (28) (4) (1) (33) (31) (31) (1.7)%
Rest of World 26,085 4,998 31,083 338 76 241 655 977 977 (239) (13) (252) (39) (5) (18) (62) (403) (403) (2.2)%
Mortgages 15,079 2,007 17,086 136 43 141 320 459 459 (4) (2) (6) – – (1) (1) (124) (124) (0.7)%
Credit cards 1,148 351 1,499 29 12 19 60 40 40 (33) (1) (34) (21) – (1) (22) (27) (27) (5.2)%
Others 9,858 2,640 12,498 173 21 81 275 478 478 (202) (10) (212) (18) (5) (16) (39) (252) (252) (3.8)%
Total 112,808 5,590 118,398 1,445 171 337 1,953 1,629 1,629 (349) (54) (403) (106) (35) (29) (170) (770) (770) (1.1)%
Annual Report 2025 | Standard Chartered 245
Risk review and Capital review
Credit Risk (audited)
Undrawn commitment and financial guarantees – by client segment credit quality
Amortised cost
Wealth & Retail Banking and Ventures
2025
Notional ECL
Stage 1
$million
Stage 2
$million
Stage 3
$million
Total
$million
Stage 1
$million
Stage 2
$million
Stage 3
$million
Total
$million
Strong 70,447 82 – 70,529 (13) (4) – (17)
Satisfactory 467 10 – 477 (2) (1) – (3)
Higher risk – 22 – 22 – (1) – (1)
Impaired – – 4 4 – – – –
Total 70,914 114 4 71,032 (15) (6) – (21)
2024
Strong 70,595 100 – 70,695 (15) (3) – (18)
Satisfactory 850 11 – 861 (5) (1) – (6)
Higher risk – 21 – 21 – (3) – (3)
Impaired – – 8 8 – – – –
Total 71,445 132 8 71,585 (20) (7) – (27)
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 ECL, 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 ECL charges.
Repayments of non-amortising loans (primarily within
CIB)will have low amounts of ECL 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, are CG 12.
• Changes in risk parameters – for stages 1 and 2, this
reflects changes in the probability of default (PD), loss
given default (LGD) and exposure at default (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. 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 incorporate changes to model
approaches and methodologies, are not reported as a
separate line item as these have an impact over a number
oflines and stages.
Standard Chartered | Annual Report 2025246
Movements during the year
Stage 1 gross exposures increased by $69.4 billion to
$790.1 billion (31 December 2024: $720.7 billion). CIB exposure
increased by $45.5 billion to $412.6 billion (31 December 2024:
$367.1 billion), due to an increase in exposures in financial
guarantees in the financing, insurance and non-banking
sector. WRB exposures increased by $6.5 billion to $186.1 billion
(31 December 2024: $179.6 billion), largely driven by mortgages
in Korea and Singapore, and increased demand in secured
wealth products. Debt securities increased by $22.4 billion,
largely in the Central and other items segment which
hadalso seen a $7.0 billion reduction in loan balances to
customers. Total stage 1 provisions increased by $83 million
to$665 million (31 December 2024: $582 million). CIB provisions
increased by $61 million to $194 million (31 December 2024:
$133 million), due to an increase in management overlays and
portfolio movements. WRB provisions reduced by $41 million
to $351 million (31 December 2024: $392 million), due to
apivot to affluent clients.
Stage 2 gross exposures decreased by $1.7 billion to
$17.0 billion (31 December 2024: $18.6 billion), primarily driven
by a net reduction in CIB exposures primarily due to a sovereign
upgrade, model changes and portfolio movements. WRB
exposures were broadly stable at $2.0 billion (31 December
2024: $2.0 billion). Stage 2 provisions decreased by $36 million
to $501 million (31 December 2024: $537 million). CIB provisions
decreased by $8 million to $354 million (31 December 2024:
$362 million), due to portfolio movements and sovereign
upgrade. WRB provisions decreased by $31 million to
$120 million (31 December 2024: $151 million) mainly driven by
improvements from credit remediation actions. Debt securities
primarily held in the Central and other items segment
decreased by $416 million, due to sovereign upgrades.
Stage 3 gross exposures remained stable at $6.9 billion
(31 December 2024: $7.0 billion). CIB exposures decreased
by$0.3 billion to $4.9 billion (31 December 2024: $5.2 billion)
due to repayments, restructuring related write-offs, which
was offset by one downgrade in the government sector.
Debtsecurities classified as purchased or originated
credit-impaired instruments (POCI) increased by $0.2 billion
to $0.3 billion (31 December 2024: $0.1 billion) due to higher
holdings of treasury bills in one defaulted sovereign. WRB
exposures remained stable at $1.7 billion (31 December
2024:$1.6 billion). CIB provisions decreased by $1 billion to
$2.3 billion (31 December 2024: $3.3 billion), due to releases
from repayments and restructuring related write-offs. WRB
provisions remained stable at $0.8 billion (31 December
2024:$0.8 billion). The amount of stage 3 exposures written
off in 2025 that remain subject to enforcement activity
is$1.7 billion (31 December 2024: $1.2 billion).
Annual Report 2025 | Standard Chartered 247
Risk review and Capital review
Credit Risk (audited)
All segments (audited)
Amortised cost and FVOCI
Stage 1 Stage 2 Stage 3
5
Total
Gross
balance
3
$million
Total credit
impairment
$million
Net
$million
Gross
balance³
$million
Total credit
impairment
$million
Net
$million
Gross
balance
3
$million
Total credit
impairment
$million
Net
$million
Gross
balance
3
$million
Total credit
impairment
$million
Net
$million
As at 1 January 2024 723,876 (526) 723,350 22,268 (517) 21,751 8,144 (4,499) 3,645 754,288 (5,542) 748,746
Transfers to stage 1 16,433 (543) 15,890 (16,423) 543 (15,880) (10) – (10) – – –
Transfers to stage 2 (33,301) 128 (33,173) 33,770 (153) 33,617 (469) 25 (444) – – –
Transfers to stage 3 (1,631) 63 (1,568) (146) 168 22 1,777 (231) 1,546 – – –
Net change in exposures 29,928 (173) 29,755 (18,435) 80 (18,355) (1,383) 622 (761) 10,110 529 10,639
Net remeasurement
fromstage changes – 61 61 – (185) (185) – (203) (203) – (327) (327)
Changes in risk parameters – 84 84 – (242) (242) – (873) (873) – (1,031) (1,031)
Write-offs – – – – – – (1,260) 1,260 – (1,260) 1,260 –
Interest due but unpaid – – – – – – 53 (53) – 53 (53) –
Discount unwind – – – – – – – 135 135 – 135 135
Exchange translation
differences and other
movements
1
(14,626) 324 (14,302) (2,427) (231) (2,658) 147 (268) (121) (16,906) (175) (17,081)
As at 31 December 2024
2
720,679 (582) 720,097 18,607 (537) 18,070 6,999 (4,085) 2,914 746,285 (5,204) 741,081
Income statement ECL
(charge)/release
6
(28) (347) (454) (829)
Recoveries of amounts
previously written off – – 279 279
Total credit impairment
(charge)/release
4
(28) (347) (175) (550)
As at 1 January 2025 720,679 (582) 720,097 18,607 (537) 18,070 6,999 (4,085) 2,914 746,285 (5,204) 741,081
Transfers to stage 1 17,431 (630) 16,801 (17,429) 630 (16,799) (2) – (2) – – –
Transfers to stage 2 (39,710) 125 (39,585) 40,040 (144) 39,896 (330) 19 (311) – – –
Transfers to stage 3 (170) 1 (169) (3,038) 255 (2,783) 3,208 (256) 2,952 – – –
Net change in exposures 74,970 (221) 74,749 (19,400) 5 (19,395) (1,558) 502 (1,056) 54,012 286 54,298
Net remeasurement
fromstage changes – 73 73 – (176) (176) – (187) (187) – (290) (290)
Changes in risk parameters – 168 168 – (135) (135) – (1,035) (1,035) – (1,002) (1,002)
Write-offs – – – – – – (1,718) 1,718 – (1,718) 1,718 –
Interest due but unpaid – – – – – – (159) 159 – (159) 159 –
Discount unwind – – – – – – – 102 102 – 102 102
Exchange translation
differences and other
movements
1
16,876 401 17,277 (1,823) (399) (2,222) 506 (136) 370 15,559 (134) 15,425
As at 31 Dec 2025
2
790,076 (665) 789,411 16,957 (501) 16,456 6,946 (3,199) 3,747 813,979 (4,365) 809,614
Income statement ECL
(charge)/release
6
20 (306) (720) (1,006)
Recoveries of amounts
previously written off – – 341 341
Total credit impairment
(charge)/release
4
20 (306) (379) (665)
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 balances of $118,232 million (31 December 2024:
$101,755 million) and Total credit impairment of $43 million (31 December 2024: $63 million).
3 The gross balance includes the notional amount of off balance sheet instruments.
4 Reported basis.
5 Stage 3 gross includes $278 million (31 December 2024: $59 million) originated credit-impaired debt securities with impairment of $5 million (31 December 2024: $Nil).
6 Does not include charge relating to Other assets of $7 million (31 December 2024: release of $3 million).
Standard Chartered | Annual Report 2025248
Corporate & Investment Banking (audited)
Amortised cost and FVOCI
Stage 1 Stage 2 Stage 3 Total
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
As at 1 January 2024 337,189 (151) 337,038 16,873 (318) 16,555 6,256 (3,651) 2,605 360,318 (4,120) 356,198
Transfers to stage 1 10,390 (245) 10,145 (10,390) 245 (10,145) – – – – – –
Transfers to stage 2 (25,698) 47 (25,651) 25,810 (58) 25,752 (112) 11 (101) – – –
Transfers to stage 3 (186) (4) (190) (186) 22 (164) 372 (18) 354 – – –
Net change in exposures 50,866 (50) 50,816 (16,508) 88 (16,420) (1,063) 607 (456) 33,295 645 33,940
Net remeasurement
fromstage changes – 16 16 (4) (36) (40) – (100) (100) (4) (120) (124)
Changes in risk parameters
2
– 32 32 – (129) (129) – (324) (324) – (421) (421)
Write-offs – – – – – – (321) 321 – (321) 321 –
Interest due but unpaid – – – – – – 25 (25) – 25 (25) –
Discount unwind – – – – – – – 104 104 – 104 104
Exchange translation
differences and other
movements
2
(5,455) 222 (5,233) (726) (176) (902) 13 (237) (224) (6,168) (191) (6,359)
As at 31 December 2024 367,106 (133) 366,973 14,869 (362) 14,507 5,170 (3,312) 1,858 387,145 (3,807) 383,338
Income statement ECL
(charge)/release
2
(2) (77) 183 104
Recoveries of amounts
previously written off – – 26 26
Total credit impairment
(charge)/release (2) (77) 209 130
As at 1 January 2025 367,106 (133) 366,973 14,869 (362) 14,507 5,170 (3,312) 1,858 387,145 (3,807) 383,338
Transfers to stage 1 11,606 (387) 11,219 (11,606) 387 (11,219) – – – – – –
Transfers to stage 2 (30,544) 29 (30,515) 30,795 (48) 30,747 (251) 19 (232) – – –
Transfers to stage 3 (111) – (111) (1,567) 56 (1,511) 1,678 (56) 1,622 – – –
Net change in exposures 58,190 (119) 58,071 (17,214) 32 (17,182) (883) 505 (378) 40,093 418 40,511
Net remeasurement
fromstage changes – 4 4 (1) (16) (17) – (145) (145) (1) (157) (158)
Changes in risk parameters – 55 55 – (79) (79) – (299) (299) – (323) (323)
Write-offs – – – – – – (1,075) 1,075 – (1,075) 1,075 –
Interest due but unpaid – – – – – – (187) 187 – (187) 187 –
Discount unwind – – – – – – – 69 69 – 69 69
Exchange translation
differences and other
movements 6,343 357 6,700 (1,597) (324) (1,921) 431 (365) 66 5,177 (332) 4,845
As at 31 December 2025 412,590 (194) 412,396 13,679 (354) 13,325 4,883 (2,322) 2,561 431,152 (2,870) 428,282
Income statement ECL
(charge)/release (60) (63) 61 (62)
Recoveries of amounts
previously written off – – 54 54
Total credit impairment
(charge)/release (60) (63) 115 (8)
1 The gross balance includes the notional amount of off balance sheet instruments.
2 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial information issued on 2 April 2025.
Annual Report 2025 | Standard Chartered 249
Risk review and Capital review
Credit Risk (audited)
Wealth & Retail Banking (audited)
Amortised cost and FVOCI
Stage 1 Stage 2 Stage 3 Total
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
As at 1 January 2024 190,999 (325) 190,674 2,472 (140) 2,332 1,485 (759) 726 194,956 (1,224) 193,732
Transfers to stage 1 5,126 (288) 4,838 (5,116) 288 (4,828) (10) – (10) – – –
Transfers to stage 2 (7,393) 80 (7,313) 7,525 (80) 7,445 (132) – (132) – – –
Transfers to stage 3 (98) 1 (97) (1,254) 211 (1,043) 1,352 (212) 1,140 – – –
Net change in exposures (3,926) (89) (4,015) (1,505) 21 (1,484) (431) – (431) (5,862) (68) (5,930)
Net remeasurement
fromstage changes – 29 29 – (144) (144) – (44) (44) – (159) (159)
Changes in risk parameters
2
– 35 35 – (152) (152) – (531) (531) – (648) (648)
Write-offs – – – – – – (808) 808 – (808) 808 –
Interest due but unpaid – – – – – – 28 (28) – 28 (28) –
Discount unwind – – – – – – – 30 30 – 30 30
Exchange translation
differences and other
movements
2
(5,128) 165 (4,963) (92) (155) (247) 139 (22) 117 (5,081) (12) (5,093)
As at 31 December 2024 179,580 (392) 179,188 2,030 (151) 1,879 1,623 (758) 865 183,233 (1,301) 181,932
Income statement ECL
(charge)/release
2
(25) (275) (575) (875)
Recoveries of amounts
previously written off – – 253 253
Total credit impairment
(charge)/release (25) (275) (322) (622)
As at 1 January 2025 179,580 (392) 179,188 2,030 (151) 1,879 1,623 (758) 865 183,233 (1,301) 181,932
Transfers to stage 1 5,261 (234) 5,027 (5,259) 234 (5,025) (2) – (2) – – –
Transfers to stage 2 (8,822) 92 (8,730) 8,901 (92) 8,809 (79) – (79) – – –
Transfers to stage 3 (52) 1 (51) (1,437) 193 (1,244) 1,489 (194) 1,295 – – –
Net change in exposures 6,130 (47) 6,083 (2,291) (5) (2,296) (772) – (772) 3,067 (52) 3,015
Net remeasurement
fromstage changes – 40 40 – (155) (155) – (42) (42) – (157) (157)
Changes in risk parameters – 50 50 – (37) (37) – (681) (681) – (668) (668)
Write-offs – – – – – – (604) 604 – (604) 604 –
Interest due but unpaid – – – – – – 28 (28) – 28 (28) –
Discount unwind – – – – – – – 33 33 – 33 33
Exchange translation
differences and other
movements 3,965 139 4,104 65 (107) (42) 43 220 263 4,073 252 4,325
As at 31 December 2025 186,062 (351) 185,711 2,009 (120) 1,889 1,726 (846) 880 189,797 (1,317) 188,480
Income statement ECL
(charge)/release 43 (197) (723) (877)
Recoveries of amounts
previously written off – – 287 287
Total credit impairment
(charge)/release 43 (197) (436) (590)
1 The gross balance includes the notional amount of off-balance sheet instruments.
2 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025.
Standard Chartered | Annual Report 2025250
Wealth & Retail Banking – Secured (audited)
Amortised cost and FVOCI
Stage 1 Stage 2 Stage 3 Total
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
As at 1 January 2024 129,798 (33) 129,765 1,827 (16) 1,811 1,062 (525) 537 132,687 (574) 132,113
Transfers to stage 1 3,839 (23) 3,816 (3,836) 23 (3,813) (3) – (3) – – –
Transfers to stage 2 (4,952) 13 (4,939) 5,054 (13) 5,041 (102) – (102) – – –
Transfers to stage 3 (43) – (43) (566) 19 (547) 609 (19) 590 – – –
Net change in exposures 2,570 (11) 2,559 (917) 8 (909) (268) – (268) 1,385 (3) 1,382
Net remeasurement
fromstage changes – 6 6 – (15) (15) – (7) (7) – (16) (16)
Changes in risk parameters
2
– 10 10 – (6) (6) – (123) (123) – (119) (119)
Write-offs – – – – – – (114) 114 – (114) 114 –
Interest due but unpaid – – – – – – 53 (53) – 53 (53) –
Discount unwind – – – – – – – 16 16 – 16 16
Exchange translation
differences and other
movements
2
(4,496) (10) (4,506) (57) (31) (88) (33) 41 8 (4,586) – (4,586)
As at 31 December 2024 126,716 (48) 126,668 1,505 (31) 1,474 1,204 (556) 648 129,425 (635) 128,790
Income statement ECL
(charge)/release
2
5 (13) (130) (138)
Recoveries of amounts
previously written off – – 80 80
Total credit impairment
(charge)/release 5 (13) (50) (58)
As at 1 January 2025 126,716 (48) 126,668 1,505 (31) 1,474 1,204 (556) 648 129,425 (635) 128,790
Transfers to stage 1 4,097 (17) 4,080 (4,095) 17 (4,078) (2) – (2) – – –
Transfers to stage 2 (6,064) 7 (6,057) 6,121 (7) 6,114 (57) – (57) – – –
Transfers to stage 3 (3) – (3) (634) 14 (620) 637 (14) 623 – – –
Net change in exposures 8,276 (11) 8,265 (1,687) 9 (1,678) (447) – (447) 6,142 (2) 6,140
Net remeasurement
fromstage changes – 4 4 – (32) (32) – (7) (7) – (35) (35)
Changes in risk parameters – (18) (18) – 41 41 – (174) (174) – (151) (151)
Write-offs – – – – – – (101) 101 – (101) 101 –
Interest due but unpaid – – – – – – 53 (53) – 53 (53) –
Discount unwind – – – – – – – 19 19 – 19 19
Exchange translation
differences and other
movements 3,767 18 3,785 63 (28) 35 10 64 74 3,840 54 3,894
As at 31 December 2025 136,789 (65) 136,724 1,273 (17) 1,256 1,297 (620) 677 139,359 (702) 138,657
Income statement ECL
(charge)/release (25) 18 (181) (188)
Recoveries of amounts
previously written off – – 93 93
Total credit impairment
(charge)/release (25) 18 (88) (95)
1 The gross balance includes the notional amount of off balance sheet instruments.
2 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025.
Annual Report 2025 | Standard Chartered 251
Risk review and Capital review
Credit Risk (audited)
Wealth & Retail Banking – Unsecured (audited)
Amortised cost and FVOCI
Stage 1 Stage 2 Stage 3 Total
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
Gross
balance
1
$million
Total credit
impairment
$million
Net
$million
As at 1 January 2024 61,201 (292) 60,909 645 (124) 521 423 (234) 189 62,269 (650) 61,619
Transfers to stage 1 1,287 (265) 1,022 (1,280) 265 (1,015) (7) – (7) – – –
Transfers to stage 2 (2,441) 67 (2,374) 2,471 (67) 2,404 (30) – (30) – – –
Transfers to stage 3 (55) 1 (54) (688) 192 (496) 743 (193) 550 – – –
Net change in exposures (6,496) (78) (6,574) (588) 13 (575) (163) – (163) (7,247) (65) (7,312)
Net remeasurement
fromstage changes – 23 23 – (129) (129) – (37) (37) – (143) (143)
Changes in risk parameters – 25 25 – (146) (146) – (408) (408) – (529) (529)
Write-offs – – – – – – (694) 694 – (694) 694 –
Interest due but unpaid – – – – – – (25) 25 – (25) 25 –
Discount unwind – – – – – – – 14 14 – 14 14
Exchange translation
differences and other
movements (632) 175 (457) (35) (124) (159) 172 (63) 109 (495) (12) (507)
As at 31 December 2024 52,864 (344) 52,520 525 (120) 405 419 (202) 217 53,808 (666) 53,142
Income statement ECL
(charge)/release (30) (262) (445) (737)
Recoveries of amounts
previously written off – – 172 172
Total credit impairment
(charge)/release (30) (262) (273) (565)
As at 1 January 2025 52,864 (344) 52,520 525 (120) 405 419 (202) 217 53,808 (666) 53,142
Transfers to stage 1 1,164 (217) 947 (1,164) 217 (947) – – – – – –
Transfers to stage 2 (2,758) 85 (2,673) 2,780 (85) 2,695 (22) – (22) – – –
Transfers to stage 3 (49) 1 (48) (803) 179 (624) 852 (180) 672 – – –
Net change in exposures (2,146) (36) (2,182) (604) (14) (618) (325) – (325) (3,075) (50) (3,125)
Net remeasurement
fromstage changes – 36 36 – (123) (123) – (35) (35) – (122) (122)
Changes in risk parameters – 68 68 – (78) (78) – (507) (507) – (517) (517)
Write-offs – – – – – – (503) 503 – (503) 503 –
Interest due but unpaid – – – – – – (25) 25 – (25) 25 –
Discount unwind – – – – – – – 14 14 – 14 14
Exchange translation
differences and other
movements 198 121 319 2 (79) (77) 33 156 189 233 198 431
As at 31 December 2025 49,273 (286) 48,987 736 (103) 633 429 (226) 203 50,438 (615) 49,823
Income statement ECL
(charge)/release 68 (215) (542) (689)
Recoveries of amounts
previously written off – – 194 194
Total credit impairment
(charge)/release 68 (215) (348) (495)
1 The gross balance includes the notional amount of off balance sheet instruments.
Standard Chartered | Annual Report 2025252
Analysis of stage 2 balances
The table below analyses total stage 2 gross on-and off-
balance sheet exposures and associated expected credit
provisions by the key SICR driver that caused the exposures
tobe classified as stage 2 as at 31 December 2025 and
31 December 2024 for each segment.
Read more on our criteria for Significant Increase
inCreditRisk on page 274
Where multiple drivers apply, the exposure is allocated based
on the table order. For example, a loan may have breached
the defined IFRS 9 PD thresholds, which is a quantitative
trigger, and could also be on non-purely precautionary early
alert, a qualitative trigger; in this instance, the exposure
isreported under ‘Quantitative’. Management overlay ECL
isreported separately as the impact is spread across
exposures with both quantitative and qualitative drivers.
Read more on ‘Summary of Credit Risk Performance’
onpage 234
2025
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items
1
Total
Gross
$million
ECL
$million
Coverage
%
Gross
$million
ECL
$million
Coverage
%
Gross
$million
ECL
$million
Coverage
%
Gross
$million
ECL
$million
Coverage
%
Gross
$million
ECL
$million
Coverage
%
Quantitative 6,742 131 1.9% 1,291 89 6.9% 60 18 30.0% 297 3 1.0% 8,390 241 2.9%
Qualitative 6,937 101 1.5% 571 10 1.8% – – 0.0% 1,373 3 0.2% 8,881 114 1.3%
30 days past due – – 0.0% 147 15 10.2% 10 4 40.0% – – 0.0% 157 19 12.1%
Management overlay – 122 0.0% – 6 0.0% – – 0.0% – – 0.0% – 128 0.0%
Total stage 2 13,679 354 2.6% 2,009 120 6.0% 70 22 31.4% 1,670 6 0.4% 17,428 502 2.9%
2024
2
Quantitative 8,465 112 1.3% 1,366 104 7.6% 48 20 41.7% 154 – 0.0% 10,033 236 2.4%
Qualitative 6,404 93 1.5% 452 6 1.3% – – 0.0% 1,970 1 0.1% 8,826 100 1.1%
30 days past due – – 0.0% 212 19 9.0% 6 4 66.7% – – 0.0% 218 23 10.6%
Management overlay – 157 0.0% – 22 0.0% – 3 0.0% – – 0.0% – 182 0.0%
Total stage 2 14,869 362 2.4% 2,030 151 7.4% 54 27 50.0% 2,124 1 0.0% 19,077 541 2.8%
1 Includes Gross and ECL for Cash and balances at central banks and Assets held for sale.
2 Amounts previously reported as ‘Increase in PD’ have been reported as Quantitative and all other amounts have been aggregated into and reported as Qualitative.
Annual Report 2025 | Standard Chartered 253
Risk review and Capital review
Credit Risk (audited)
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 234
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 121 (117) 4 78 (198) (120)
Wealth & Retail Banking 159 436 595 301 322 623
Ventures (2) 61 59 10 63 73
Central & other items 18 – 18 (18) (1) (19)
Credit impairment charge/(release) 296 380 676 371 186 557
Restructuring business portfolio
Others (3) (1) (4) 1 (11) (10)
Credit impairment charge/(release) (3) (1) (4) 1 (11) (10)
Total credit impairment charge 293 379 672 372 175 547
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 $238 million to $1,022 million (31 December 2024: $784 million), of which CIB accounted
for$167 million largely driven by a new performing forborne loan in Hong Kong. WRB increased by $71 million to $254 million
(31 December 2024: $183 million) mainly due to higher conversion in Malaysia and introduction of forbearance measures in China.
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 295 61 356 17 36 53
Modification of terms and conditions
1
90 61 151 17 36 53
Refinancing
2
205 – 205 – – –
Impairment provisions (68) – (68) – (1) (1)
Modification of terms and conditions
1
(8) – (8) – (1) (1)
Refinancing
2
(60) – (60) – – –
Net stage 1 and 2 forborne loans 227 61 288 17 35 52
Collateral 4 36 40 – 27 27
Gross stage 3 forborne loans 1,295 311 1,606 2,065 258 2,323
Modification of terms and conditions
1
1,208 311 1,519 1,824 258 2,082
Refinancing
2
87 – 87 241 – 241
Impairment provisions (754) (118) (872) (1,481) (110) (1,591)
Modification of terms and conditions
1
(727) (118) (845) (1,242) (110) (1,352)
Refinancing
2
(27) – (27) (239) – (239)
Net stage 3 forborne loans 541 193 734 584 148 732
Collateral 175 25 200 172 55 227
Net carrying value of forborne loans 768 254 1,022 601 183 784
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 borrower in credit stress, such that they are refinanced and can pay other debt contracts that they were unable to honour.
Standard Chartered | Annual Report 2025254
Forborne and other modified loans by key geography
Net forborne loans increased by $238 million to $1,022 million (31 December 2024: $784 million), mainly due to performing
forborne loans in Hong Kong.
Amortised cost
2025 2024
1
Hong
Kong
$million
Korea
$million
China
$million
Singapore
$million
UK
$million
US
$million
Other
$million
Total
$million
Hong
Kong
$million
Korea
$million
China
$million
Singapore
$million
UK
$million
US
$million
Other
$million
Total
$million
Performing
forborne loans 147 10 – 3 48 – 80 288 2 8 – 3 – – 39 52
Stage 3
forborne loans 131 24 73 32 103 – 371 734 110 25 85 25 81 1 405 732
Net forborne
loans 278 34 73 35 151 – 451 1,022 112 33 85 28 81 1 444 784
1 Amounts have been re-presented from management view to financial booking basis in line with RNS on Re-Presentation of Financial Information issued
on2 April2025. Refer to the bridge tables in Note 40 on page 424.
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.
Read more on Credit Risk Mitigation on page 226
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.
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
186,081 7,765 2,070 34,122 2,292 314 151,959 5,473 1,756
Wealth & Retail Banking 126,977 1,789 877 99,641 916 678 27,336 873 199
Ventures 2,659 39 13 – – – 2,659 39 13
Central & other items 14,972 – – 4,214 – – 10,758 – –
Total 330,689 9,593 2,960 137,977 3,208 992 192,712 6,385 1,968
2024
Corporate & Investment
Banking
1
181,897 8,657 1,376 36,750 3,052 298 145,147 5,605 1,078
Wealth & Retail Banking 119,248 1,758 858 85,163 891 584 34,085 867 274
Ventures 1,389 25 1 – – – 1,389 25 1
Central & other items 22,091 35 98 80 35 – 22,011 – 98
Total 324,625 10,475 2,333 121,993 3,978 882 202,632 6,497 1,451
1 Includes loans and advances to banks.
2 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures.
Annual Report 2025 | Standard Chartered 255
Risk review and Capital review
Credit Risk (audited)
Collateral – Corporate & Investment Banking
(audited)
Our underwriting standards encourage taking specific
charges on assets and we consistently seek high-quality,
investment grade collateral.
Collateral taken for longer-term and sub-investment grade
corporate loans increased to 55 per cent (31 December
2024: 49 per cent).
For CIB, the unadjusted market value of collateral across all
asset types, without adjusting for over collateralisation,
increased to $412 billion (31 December 2024: $383 billion)
predominantly due to an increase in reverse repos.
84 per cent (31 December 2024: 88 per cent) of tangible
collateral excluding reverse repurchase agreements and
financial guarantees held comprises physical assets with the
remainder held in cash. Overall collateral remained broadly
stable at $34.1 billion (31 December 2024: $36.8 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 loss given default and other credit-
related factors. Collateral is also held against off-balance
sheet exposures, including undrawn commitments and
trade-related instruments.
Corporate & Investment Banking
Amortised cost
2025
$million
2024
$million
Maximum exposure 186,081 181,897
Property 9,086 8,504
Plant, machinery and other stock 783 935
Cash 3,034 1,973
Reverse repos 7,816 12,568
AAA 587 –
AA- to AA+ 233 938
A- to A+ 2,454 8,324
BBB- to BBB+ 2,122 1,437
Lower than BBB- – 95
Unrated 2,420 1,774
Financial guarantees
andinsurance 7,717 7,075
Commodities 11 33
Ships and aircraft 5,675 5,662
Total value of collateral
1,2
34,122 36,750
Net exposure 151,959 145,147
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 257.
Collateral – Wealth & Retail Banking (audited)
In WRB, fully secured products increased to 88 per cent of the total portfolio (31 December 2024: 85 per cent), due to an increase
in the mortgage 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 111,633 490 14,854 126,977 101,264 536 17,448 119,248
Loans to individuals
Mortgages 82,128 – – 82,128 76,696 – – 76,696
CCPL
5
– – 13,372 13,372 – – 16,343 16,343
Secured wealth products 27,055 – – 27,055 21,928 – – 21,928
Other
4,5
2,450 490 1,482 4,422 2,640 536 1,105 4,281
Total collateral
2
99,641 85,163
Net exposure
3
27,336 34,085
Percentage of total loans 88% 0% 12% 85% 0% 15%
1 Secured loans are fully secured if the fair value of the collateral is equal to or greater than the loan at the time of origination. All other secured loans are considered
to be partially secure.
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 $463 million under Fully secured to align product classification.
Standard Chartered | Annual Report 2025256
Mortgage loan-to-value ratios by geography (audited)
Loan-to-value (LTV) ratios measure the ratio of the current mortgage outstanding to the current fair value of the properties
onwhich they are secured.
For the majority of mortgage loans, the value of property held as security significantly exceeds the principal outstanding of
theloan. The average LTV of the overall mortgage portfolio remains stable at 48.0 per cent (31 December 2024: 48.9 per cent).
The decrease in Hong Kong residential mortgage LTV to 55.9 per cent (31 December 2024: 58.6 per cent) was due to an increase
in property prices. However, 28.8 per cent of Hong Kong mortgage exposure is backed by credit insurance. Specifically, 94.6 per
cent of Hong Kong mortgage exposure with LTV greater than 80 per cent is backed by credit insurance.
An analysis of LTV ratios by geography for the mortgage portfolio is presented in the table below.
Amortised cost
2025 2024
Hong Kong
%
Gross
Singapore
%
Gross
Korea
%
Gross
Other
%
Gross
Total
%
Gross
Hong Kong
%
Gross
Singapore
%
Gross
Korea
%
Gross
Other
%
Gross
Total
%
Gross
Less than 50 per cent 42.7 51.8 62.9 46.7 51.0 40.9 52.7 64.1 50.2 51.3
50 per cent to 59 per cent 17.3 19.4 13.3 14.8 16.0 17.6 21.8 13.2 15.4 16.5
60 per cent to 69 per cent 14.5 15.8 13.7 17.2 15.1 12.7 15.6 13.5 17.0 14.3
70 per cent to 79 per cent 5.3 12.7 8.9 14.2 9.5 5.5 9.6 8.3 12.7 8.5
80 per cent to 89 per cent 8.6 0.2 0.9 5.9 4.3 5.1 0.1 0.8 4.1 2.9
90 per cent to 99 per cent 6.7 0.0 0.2 0.7 2.4 8.2 0.0 0.1 0.5 3.0
100 per cent and greater 4.9 0.1 0.1 0.5 1.7 10.1 0.1 0.1 0.2 3.5
Average portfolio loan-to-value 55.9 42.7 41.8 49.9 48.0 58.6 42.5 42.1 48.0 48.9
Loans to individuals
–mortgages($million) 31,714 16,054 15,808 18,552 82,128 31,506 13,756 13,703 17,731 76,696
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 that is held on the
Group’s balance sheet as of 31 December 2025 is $nil
(31 December 2024: $24 million).
Other Credit Risk mitigation (audited)
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: $3.5 billion).
These credit default swaps are accounted for as financial
guarantees as per IFRS 9 as they will only reimburse the
holder for an incurred loss on an underlying debt instrument.
The Group continues to hold the underlying assets referenced
in the credit default swaps and it continues to be exposed
torelated Credit Risk and Foreign Exchange Rate 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 of $1.9 billion (31 December 2024: $2.0 billion) 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 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.
Annual Report 2025 | Standard Chartered 257
Risk review and Capital review
Credit Risk (audited)
Other portfolio analysis
This section provides maturity analysis by credit quality byindustry, and industry and retail products analysis bykeygeography.
Maturity analysis of loans and advances byclientsegment
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 in the CIB segment remain predominantly short-term, with $84.0 billion (31 December 2024: $91.1 billion)
maturing in less than one year. 90 per cent (31 December 2024: 91 per cent) of loans to banks mature inless than one year,
withexposures remaining stable at$43.9 billion (31 December 2024: $43.6 billion).
The WRB short-term book of one year or less, is broadly stable at 29 per cent (31 December 2024: 27 per cent). The WRB long-term
book of over five years, also remained broadly stable at 62 per cent (31 December 2024: 62 per cent).
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 83,996 40,495 20,341 144,832 91,065 33,130 17,670 141,865
Wealth & Retail Banking 36,930 12,317 79,036 128,283 32,252 13,194 75,091 120,537
Ventures 1,917 819 12 2,748 1,001 442 – 1,443
Central & other items 14,723 259 4 14,986 22,085 2 4 22,091
Gross loans and advances to customers 137,566 53,890 99,393 290,849 146,403 46,768 92,765 285,936
Impairment provisions (3,523) (443) (95) (4,061) (4,369) (409) (126) (4,904)
Net loans and advances to customers 134,043 53,447 99,298 286,788 142,034 46,359 92,639 281,032
Net loans and advances to banks 39,360 3,946 595 43,901 39,591 3,699 303 43,593
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.
Read more on ‘Summary of Credit Risk Performance’ section on page 234
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 13,541 (34) 13,507 803 (37) 766 461 (412) 49 14,805 (483) 14,322
Manufacturing 20,599 (14) 20,585 744 (19) 725 598 (320) 278 21,941 (353) 21,588
Financing, insurance
andnon-banking 37,062 (13) 37,049 506 (10) 496 278 (181) 97 37,846 (204) 37,642
Transport, telecom
andutilities 17,893 (11) 17,882 2,281 (43) 2,238 390 (108) 282 20,564 (162) 20,402
Food and household
products 8,319 (9) 8,310 295 (17) 278 186 (177) 9 8,800 (203) 8,597
Commercial real estate 13,103 (12) 13,091 2,067 (161) 1,906 706 (418) 288 15,876 (591) 15,285
Mining and quarrying 4,881 (5) 4,876 244 (7) 237 33 (29) 4 5,158 (41) 5,117
Consumer durables 6,279 (7) 6,272 288 (15) 273 239 (230) 9 6,806 (252) 6,554
Construction 2,046 (9) 2,037 353 (1) 352 127 (127) – 2,526 (137) 2,389
Trading companies
&distributors 633 (1) 632 11 – 11 81 (47) 34 725 (48) 677
Government 17,915 (17) 17,898 119 – 119 950 (82) 868 18,984 (99) 18,885
Other 5,485 (8) 5,477 148 – 148 154 (85) 69 5,787 (93) 5,694
Total
2
147,756 (140) 147,616 7,859 (310) 7,549 4,203 (2,216) 1,987 159,818 (2,666) 157,152
Retail Products:
Mortgage 80,672 (11) 80,661 992 (5) 987 641 (161) 480 82,305 (177) 82,128
Credit Cards 8,077 (129) 7,948 289 (74) 215 64 (53) 11 8,430 (256) 8,174
Personal Loans and other
unsecured lending 7,719 (186) 7,533 194 (44) 150 334 (160) 174 8,247 (390) 7,857
Secured wealth products 26,609 (43) 26,566 324 (6) 318 530 (359) 171 27,463 (408) 27,055
Other 4,229 (19) 4,210 165 (7) 158 192 (138) 54 4,586 (164) 4,422
Total 127,306 (388) 126,918 1,964 (136) 1,828 1,761 (871) 890 131,031 (1,395) 129,636
Net carrying value
(customers)
1
275,062 (528) 274,534 9,823 (446) 9,377 5,964 (3,087) 2,877 290,849 (4,061) 286,788
Net carrying value (Banks)
1
43,608 (6) 43,602 217 (1) 216 90 (7) 83 43,915 (14) 43,901
1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $8,242 million for customers and $3,724 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 239.
Standard Chartered | Annual Report 2025258
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 12,147 (9) 12,138 468 (57) 411 870 (559) 311 13,485 (625) 12,860
Manufacturing 19,942 (12) 19,930 840 (16) 824 418 (305) 113 21,200 (333) 20,867
Financing, insurance
andnon-banking 34,452 (16) 34,436 1,238 (6) 1,232 154 (142) 12 35,844 (164) 35,680
Transport, telecom and
utilities 16,099 (11) 16,088 2,309 (32) 2,277 330 (85) 245 18,738 (128) 18,610
Food and household
products 8,425 (8) 8,417 267 (8) 259 251 (198) 53 8,943 (214) 8,729
Commercial real estate 12,135 (10) 12,125 1,714 (126) 1,588 1,485 (1,265) 220 15,334 (1,401) 13,933
Mining and quarrying 5,542 (3) 5,539 287 (12) 275 124 (57) 67 5,953 (72) 5,881
Consumer durables 5,988 (6) 5,982 218 (26) 192 292 (259) 33 6,498 (291) 6,207
Construction 1,925 (2) 1,923 528 (5) 523 171 (160) 11 2,624 (167) 2,457
Trading companies
&distributors 589 – 589 24 (1) 23 88 (48) 40 701 (49) 652
Government 28,870 – 28,870 441 (12) 429 205 (18) 187 29,516 (30) 29,486
Other 4,590 (3) 4,587 344 (2) 342 186 (82) 104 5,120 (87) 5,033
Total
4
150,704 (80) 150,624 8,678 (303) 8,375 4,574 (3,178) 1,396 163,956 (3,561) 160,395
Retail Products:
Mortgage 75,340 (8) 75,332 896 (2) 894 606 (136) 470 76,842 (146) 76,696
Credit Cards 8,037 (121) 7,916 222 (80) 142 71 (60) 11 8,330 (261) 8,069
Personal Loans and other
unsecured lending
3
9,563 (228) 9,335 236 (53) 183 274 (129) 145 10,073 (410) 9,663
Secured wealth products 21,404 (37) 21,367 402 (6) 396 518 (353) 165 22,324 (396) 21,928
Other
2,3
4,054 (9) 4,045 197 (29) 168 160 (92) 68 4,411 (130) 4,281
Total 118,398 (403) 117,995 1,953 (170) 1,783 1,629 (770) 859 121,980 (1,343) 120,637
Net carrying value
(customers)
1
269,102 (483) 268,619 10,631 (473) 10,158 6,203 (3,948) 2,255 285,936 (4,904) 281,032
Net carrying value (Banks)
1
43,208 (10) 43,198 318 (1) 317 83 (5) 78 43,609 (16) 43,593
1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $9,660 million for customers and $2,946 million for Banks.
2 Includes Auto Loans previously presented separately. Prior period has been represented.
3 Prior period has been represented between Personal Loan 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 240.
Industry and Retail Products analysis of Loans
and advances by key geography
This section provides an analysis of the Group’s amortised
cost loan portfolio, net of provisions, by industry
andgeography.
The geographic disclosures below are presented on a
booking location basis. As the Group operates a global
booking model across CIB and Central and other items,
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 countries analysed in the
tablebelow for CIB and Central and other items would cover
approximately 50 per cent (31 December 2024: 53 per cent) of
net loans and advances compared to 74 per cent (31 December
2024: 75 per cent) on a reported booking location basis.
Loans and advances to customers in the United Kingdom,
Hong Kong andSingapore would be approximately lower
by49 per cent (31 December 2024: 65 per cent), 70 per cent
(31 December 2024: 59 per cent) and 39 per cent (31 December
2024: 26 percent) respectively. Loans and advances to
customers inChina and United States would be approximately
higher by 49 per cent (31 December 2024: 55 per cent) and
6per cent (31 December 2024: 9 per cent) respectively.
The manufacturing sector group is spread across a diverse
range of industries, including automobiles and components,
capital goods, pharmaceuticals, biotech and life sciences,
technology hardware and equipment, chemicals, paper
products and packaging, with lending spread over 3,340clients.
Annual Report 2025 | Standard Chartered 259
Risk review and Capital review
Credit Risk (audited)
Corporate & Investment Banking and Central & other items
Amortised Cost
2025 2024
1
Hong
Kong
$million
China
$million
Singapore
$million
UK
$million
US
$million
Other
$million
Total
$million
Hong
Kong
$million
China
$million
Singapore
$million
UK
$million
US
$million
Other
$million
Total
$million
Industry:
Energy 2,254 103 4,005 3,685 1,730 2,545 14,322 1,036 60 3,089 3,666 1,771 3,238 12,860
Manufacturing 4,653 3,311 2,775 848 2,553 7,448 21,588 4,077 4,200 1,655 660 2,307 7,968 20,867
Financing, insurance and
non-banking 4,225 4,404 1,959 8,119 14,150 4,785 37,642 3,633 3,486 2,401 12,282 9,900 3,978 35,680
Transport, telecom and utilities 6,125 87 4,337 1,817 1,552 6,484 20,402 5,131 612 3,766 2,596 880 5,625 18,610
Food and household products 341 301 1,489 1,162 1,081 4,223 8,597 1,038 428 1,472 1,151 685 3,955 8,729
Commercial Real estate 4,067 231 1,209 2,000 2,296 5,482 15,285 4,512 334 1,421 1,107 1,575 4,984 13,933
Mining and Quarrying 434 541 401 1,525 101 2,115 5,117 608 606 866 1,644 214 1,943 5,881
Consumer durables 2,416 503 359 308 414 2,554 6,554 2,780 293 504 154 481 1,995 6,207
Construction 179 119 354 198 247 1,292 2,389 318 156 482 96 247 1,158 2,457
Trading Companies
&Distributors 47 143 126 31 36 294 677 95 103 106 31 40 277 652
Government 3,993 126 10,557 1,486 2 2,721 18,885 3,836 117 20,266 1,671 4 3,592 29,486
Other 1,594 472 956 720 445 1,507 5,694 1,419 563 816 724 233 1,278 5,033
Net Loans and advances
toCustomers 30,328 10,341 28,527 21,899 24,607 41,450 157,152 28,483 10,958 36,844 25,782 18,337 39,991 160,395
Net Loans and advances
toBanks 13,258 3,731 8,356 4,606 1,044 12,906 43,901 15,058 2,432 7,701 4,337 2,322 11,743 43,593
1 Amounts have been re-presented from management view to financial booking basis in line with RNS on Re-Presentation of Financial Information issued on 2 April
2025 and also to include Central & other items amounts. Refer to the bridge tables in Note 40 on page 424.
Wealth & Retail Banking and Ventures
Amortised Cost
2025 2024
2
Hong Kong
$million
Korea
$million
Singapore
$million
Other
$million
Total
$million
Hong Kong
$million
Korea
$million
Singapore
$million
Other
$million
Total
$million
Mortgages 31,714 15,808 16,054 18,552 82,128 31,506 13,703 13,756 17,731 76,696
Credit Cards 4,424 17 2,529 1,204 8,174 4,262 38 2,252 1,517 8,069
Personal Loans and
other unsecured
lending
3
996 2,474 332 4,055 7,857 1,057 2,796 301 5,509 9,663
Secured wealth
products 6,444 19 14,812 5,780 27,055 5,229 24 10,793 5,882 21,928
Other Retail
1,3
597 2,069 129 1,627 4,422 579 2,153 194 1,355 4,281
Net Loans
andadvances
toCustomers 44,175 20,387 33,856 31,218 129,636 42,633 18,714 27,296 31,994 120,637
2 Includes Auto Loans previously presented separately. Prior period has been represented.
3 Prior year has been represented to include Ventures.
4 Prior period has been represented between Personal Loans and other unsecured lending and Other Retail for $463 million to align product classification.
High carbon sectors
Sectors are identified and grouped as per the International
Standard Industrial Classification (ISIC) system and exposure
numbers have been updated to include all in-scope ISIC
codes used for target setting among the high carbon sectors.
The exposure is a mixture of high carbon loans, and lending
tagged as sustainable finance such as green buildings
incommercial real estate, renewable plants in power,
andCCUS in oil and gas.
The maximum exposures shown in the table include loans
and advances at amortised cost, Fair Value through profit
orloss, and committed facilities available as per IFRS 9
–Financial Instruments.
Read more on ‘Summary of Credit Risk Performance’ section
on page 234
Standard Chartered | Annual Report 2025260
Maximum exposure
2025
Maximum on
Balance Sheet
Exposure
(net of credit
impairment)
$million
Collateral
$million
Net On Balance
Sheet Exposure
$million
Undrawn
Commitments
(net of credit
impairment)
$million
Financial
Guarantees
(netof credit
impairment)
$million
Net Off Balance
Sheet Exposure
$million
Total On & Off
Balance Sheet
NetExposure
$million
Industry:
Automotive manufacturers 4,409 412 3,997 4,712 730 5,442 9,439
Aviation 2,010 1,176 834 1,206 820 2,026 2,860
Steel 1,767 296 1,471 834 237 1,071 2,542
Coal Mining 2 1 1 – 8 8 9
Aluminium 875 39 836 371 93 464 1,300
Cement 781 52 729 693 264 957 1,686
Shipping 6,861 4,300 2,561 2,183 180 2,363 4,924
Commercial Real Estate 9,397 4,406 4,991 3,050 188 3,238 8,229
Oil & Gas 9,462 992 8,470 12,257 8,314 20,571 29,041
Power 7,585 1,180 6,405 6,138 1,548 7,686 14,091
Total
1,5
43,149 12,854 30,295 31,444 12,382 43,826 74,121
Total Corporate &
Investment Banking
2
204,974 27,925 177,049 135,410 105,414 240,824 417,872
Total Group
3,4
430,158 137,977 292,181 208,841 114,053 322,894 615,074
2024
Industry:
Automotive manufacturers 3,881 69 3,812 3,331 605 3,936 7,748
Aviation 1,829 960 869 842 928 1,770 2,639
Steel 1,526 316 1,210 816 325 1,141 2,351
Coal Mining 25 – 25 – – – 25
Aluminium 1,341 32 1,309 354 53 407 1,716
Cement 709 55 654 637 267 904 1,558
Shipping 7,038 5,037 2,001 2,176 397 2,573 4,574
Commercial Real Estate 7,635 3,400 4,235 2,758 684 3,442 7,677
Oil & Gas 7,421 988 6,433 7,928 7,079 15,007 21,440
Power 6,341 1,500 4,841 4,538 1,124 5,662 10,503
Total
1,5
37,746 12,357 25,389 23,380 11,462 34,842 60,231
Total Corporate &
Investment Banking
2
196,823 32,152 164,671 118,106 81,132 199,238 363,909
Total Group
3,4
420,117 121,993 298,124 193,115 90,602 283,717 581,841
1 Maximum on balance sheet exposure includes FVTPL amount of High Carbon sector is $2,202 million (31 December 2024: $749 million).
2 Includes on balance sheet FVTPL amount of $62,795 million (31 December 2024: $ 58,519 million) for Corporate & Investment Banking loans to customers.
3 Total Group includes net loans and advances to banks and net loans and advances to customers held at amortised cost of $43,901 million (31 December 2024:
$43,593 million) and $286,788 million (31 December 2024: $ 281,032 million) respectively and loans to banks and loans and advances to customers held at FVTPL
of$36,673 million (31 December 2024: $ 36,967 million) and $62,798 million (31 December 2024: $ 58,525 million) respectively. Refer to Loans and advances by client
segment table on page 239.
4 Agriculture is a further sector for which the Group set a net zero target in 2025 (see net zero section on page 90). The value chain in scope for this sector
incorporates from pre-farm production (fertiliser) to post-farm processing (food traders, processors and wholesales). The total outstanding loan exposure to this
sector is$11,239 million (31 December 2024: $11,531 million) with financial guarantees of $1,908 million (31 December 2024: $2,174 million) and undrawn commitments
of$10,977 million (31 December 2024:$8,791 million) Whilst there is a net zero target on this sector and transition risk is a consideration, the sector is not considered
atraditional high carbon sector as it is not linked to heavy industry and the consumption of energy.
5 The ratio of total high carbon sector lending to the Group’s total assets is 5.9% (31 December 2024: 5.8%), which is the high carbon sector and agriculture sector
balances over the total Group balance sheet.
Annual Report 2025 | Standard Chartered 261
Risk review and Capital review
Credit Risk (audited)
Maturity and ECL for high-carbon sectors
Sector
2025 2024
Loans and
advances
(Drawn
funding)
$million
Maturity Buckets
1
Expected
Credit Loss
$million
Loans and
advances
(Drawn
funding)
$million
Maturity Buckets
1
Expected
Credit Loss
$million
Less than
1year
$million
More than
1to 5 years
$million
More than
5years
$million
Less than
1year
$million
More than
1to 5 years
$million
More than
5years
$million
Automotive
Manufacturers 4,411 3,137 1,041 233 1 3,883 3,458 369 56 2
Aviation 2,013 329 201 1,483 3 1,833 231 404 1,198 4
Steel 1,790 863 167 760 23 1,598 941 133 524 72
Coal Mining 15 15 – – 12 38 25 13 – 13
Aluminium 882 731 151 – 8 1,352 1,089 177 86 11
Cement 820 579 241 – 39 724 356 368 – 15
Shipping 6,884 737 2,413 3,734 23 7,053 1,035 2,450 3,568 15
Commercial
RealEstate 9,552 5,264 4,081 207 155 7,773 3,880 3,680 213 138
Oil & Gas 9,525 3,483 1,739 4,303 64 7,580 2,601 2,407 2,572 159
Power 7,646 2,079 1,725 3,842 61 6,401 1,700 1,404 3,297 60
Total balance
1
43,538 17,217 11,759 14,562 389 38,235 15,316 11,405 11,514 489
1 Gross of credit impairment.
Sectors of interest
Commercial real estate
2025
Maximum on
Balance Sheet
Exposure
(netofcredit
impairment)
2
$million
Collateral
$million
Net On Balance
Sheet Exposure
$million
Undrawn
Commitments
(net of credit
impairment)
$million
Financial
Guarantees
(net of credit
impairment)
$million
Net Off Balance
Sheet Exposure
$million
Total On & Off
Balance Sheet
NetExposure
$million
Commercial Real Estate 16,230 6,848 9,382 7,662 244 7,906 17,288
2024
Commercial Real Estate 14,037 5,947 8,090 4,932 670 5,602 13,692
2 Includes net loans and advances of $15,286 million (31 December 2024: $13,933 million) as detailed in the table below.
Analysis of credit quality of loans and advances of Commercial Real Estate
Amortised costs
2025
Gross
$million
2024
Gross
$million
Strong 9,070 7,222
Satisfactory 5,728 6,515
Higher risk 372 112
Credit impaired (stage 3) 706 1,485
Total Gross Balance 15,876 15,334
Strong (4) (83)
Satisfactory (95) (44)
Higher risk (73) (9)
Credit impaired (stage 3) (418) (1,265)
Total Credit Impairment (590) (1,401)
Total Net of Credit Impairment 15,286 13,933
Strong 0.0% 1.1%
Satisfactory 1.6% 0.7%
Higher risk 19.6% 8.0%
Credit impaired (stage 3) 59.2% 85.1%
Cover Ratio 3.7% 9.1%
An analysis of the net CRE loans and advances by key geography, is set out on page 260.
Standard Chartered | Annual Report 2025262
Debt securities and other eligible bills (audited)
This section provides further detail on gross debt securities
and treasury bills.
The credit quality descriptions in the table below align to
those used for CIB and Central and other items, as described
on page 238. Debt securities held that have a short-term
external 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 226.
Total gross debt securities and other eligible bills increased by
$22.2 billion to $165.8 billion (31 December 2024: $143.6 billion)
primarily due to an increase in high quality liquidity assets
held in stage 1, mainly in Hong Kong and Singapore. Stage 2
balances decreased by $0.4 billion to $1.2 billion (31 December
2024: $1.6 billion) largely due to sovereign upgrades. Stage 3
balances increased by $0.2 billion to $0.3 billion (31 December
2024: $0.1 billion) largely due to higher exposures to previously
defaulted sovereigns in Africa.
Amortised cost andFVOCI
2025 2024
Gross
$million
ECL
$million
Net
2
$million
Gross
$million
ECL
$million
Net
2
$million
Stage 1 164,283 (56) 164,227 141,862 (23) 141,839
• Strong 160,390 (49) 160,341 138,353 (19) 138,334
• Satisfactory 3,893 (7) 3,886 3,509 (4) 3,505
Stage 2 1,198 (5) 1,193 1,614 (4) 1,610
• Strong 68 – 68 562 – 562
• Satisfactory 1,130 (5) 1,125 31 – 31
• High Risk – – – 1,021 (4) 1,017
Stage 3 296 (5) 291 103 (2) 101
Gross balance
1
165,777 (66) 165,711 143,579 (29) 143,550
1 Stage 3 gross includes $278 million (31 December 2024: $59 million) originated credit-impaired debt securities with $5 million 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 instruments are not presented net of ECL on the balance sheet. While the presentation is on a net basis for the table, the total net on-balance sheet amount
is $165,753 million (31 December 2024: $143,562 million). Refer to the Analysis of financial instrument by stage table.
Annual Report 2025 | Standard Chartered 263
Risk review and Capital review
Credit Risk (audited)
Approach for determining ECL
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
cashflows due and those that the bank expects to receive. The Group estimates LGD based on
the history of recovery rates and considers the recovery of any collateral that is integral to the
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, repayments of principal and interest, and amortisation.
To determine the 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
businesses 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 WRB 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 will be 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 performed by Group
Model Validation (GMV) with the depth of validation
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36 months.
IFRS 9 ECL methodology (audited)
Standard Chartered | Annual Report 2025264
Composition of credit impairment provisions (audited)
The table below summarises the key components of the Group’s credit impairment provision balances as at 31 December 2025
and31 December 2024.
2025 2024
Corporate &
Investment
Banking
$ million
Wealth &
Retail
Banking
$ million
Ventures
$ million
Central &
other items
4
$ million
Total
$ million
Corporate &
Investment
Banking
$ million
Wealth &
Retail
Banking
$ million
Ventures
$ million
Central &
other items
4
$ million
Total
$ million
Modelled ECL
provisions (base
forecast) 375 527 96 63 1,061 337 613 61 37 1,048
Impact of multiple
economic
scenarios
1
56 31 3 23 113 24 19 – – 43
Modelled ECL
provisions before
management
judgements 431 558 99 86 1,174 361 632 61 37 1,091
Includes: Model
performance
post model
adjustments – 10 – – 10 – 14 – – 14
Judgemental post
model
adjustments
2
– (10) (2) – (12) – (23) – – (23)
Management
overlays
3
167 24 – 11 202 179 27 7 – 213
Total modelled
provisions 598 572 97 97 1,364 540 636 68 37 1,281
Of which:
Stage 1 194 351 49 92 686 133 392 30 34 589
Stage 2 354 120 24 5 503 362 151 27 1 541
Stage 3 50 101 24 – 175 45 93 11 2 151
Stage 3
non-modelled
provisions 2,272 745 – 27 3,044 3,267 665 – 54 3,986
Total credit
impairment
provisions 2,870 1,317 97 124 4,408 3,807 1,301 68 91 5,267
1 Includes upwards judgemental post-model adjustment of $90 million (31 December 2024: $28 million).
2 Excludes $90 million upwards judgemental post-model adjustment which is included in ‘Impact of multiple economic scenarios’.
3 $61 million (31 December 2024: $32 million) is in stage 1, $128 million (31 December 2024: $181 million) in stage 2 and $14 million (31 December 2024: Nil) in stage 3.
4 Includes ECL on cash and balances at central banks, accrued income, assets held for sale and other assets.
Model performance post model adjustments
(PMAs)
As part of model monitoring and independent validation
processes, where a model’s performance breaches the
approved monitoring thresholds or validation standards,
anassessment is performed to determine whether a model
performance PMA is required to temporarily remediate the
model issue. Read more on the process for the determination
of PMAs in the ‘Governance of PMAs and application
ofexpert credit judgement in respect of ECL’ section
onpage275.
As at 31 December 2025, model performance PMAs have
been applied for 4 models out of the total of 110 models.
Inaggregate, these PMAs increase the Group’s impairment
provisions by $10 million (less than one per cent of modelled
provisions) compared with a $14 million increase at
31 December 2024.
In addition to these model performance PMAs, separate
judgemental post model and management adjustments
have also been applied as set out on page 270.
Annual Report 2025 | Standard Chartered 265
Risk review and Capital review
2025
$ million
2024
$ million
Model performance PMAs
Corporate & Investment Banking – –
Wealth & Retail Banking 10 14
Total model performance PMAs 10 14
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 not just depend 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 review 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 2025
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. 2026 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 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 Forecasts 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 2025 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 GDP graphs below illustrate the shape of the Base
Forecast for key footprint markets in relation to prior periods’
actuals. The long-term growth rates are based on the pace
ofeconomic expansion expected for 2030. The tables below
provide a summary of the Group’s Base Forecast for these
markets. The peak/trough amounts show the highest and
lowest points within the Base Forecast.
Credit Risk (audited)
Standard Chartered | Annual Report 2025266
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 Hong Kong and ease
more sharply 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.
Korea’s GDP growth is expected to accelerate to 2 per cent
in2026 from 1 per cent in 2025 as construction investment
turns positive, facility investment stays stable and private
consumption strengthens.
Singapore GDP YoY%
15
Q1
16
Q3
21
Q1
19
Q3
18
Q1
22
Q3
24
Q1
25
Q3
27
Q4
29
Q2
30
Q4
15
Q4
20
Q2
18
Q4
17
Q2
21
Q4
23
Q2
24
Q4
26
Q2
28
Q3
30
Q1
27
Q1
Long-term growth
Forecast
Actual
20
15
10
5
0
-5
-10
-15
Hong Kong GDP YoY%
Korea GDP YoY%
India GDP YoY%
15
Q1
16
Q3
21
Q1
19
Q3
18
Q1
22
Q3
24
Q1
25
Q3
27
Q4
29
Q2
30
Q4
15
Q4
20
Q2
18
Q4
17
Q2
21
Q4
23
Q2
24
Q4
26
Q2
28
Q3
30
Q1
27
Q1
Long-term growth
Forecast
Actual
20
18
14
10
16
12
8
6
4
2
0
-2
-4
-6
-8
15
Q1
16
Q3
21
Q1
19
Q3
18
Q1
22
Q3
24
Q1
25
Q3
27
Q4
29
Q2
30
Q4
15
Q4
20
Q2
18
Q4
17
Q2
21
Q4
23
Q2
24
Q4
26
Q2
28
Q3
30
Q1
27
Q1
Long-term growth
Forecast
Actual
10
8
4
0
-4
-8
6
2
-2
-6
-10
-12
15
Q1
16
Q3
21
Q1
19
Q3
18
Q1
22
Q3
24
Q1
25
Q3
27
Q4
29
Q2
30
Q4
15
Q4
20
Q2
18
Q4
17
Q2
21
Q4
23
Q2
24
Q4
26
Q2
28
Q3
30
Q1
27
Q1
Long-term growth
Forecast
Actual
8
6
4
2
0
-2
-4
15
Q1
16
Q3
21
Q1
19
Q3
18
Q1
22
Q3
24
Q1
25
Q3
27
Q4
29
Q2
30
Q4
15
Q4
20
Q2
18
Q4
17
Q2
21
Q4
23
Q2
24
Q4
26
Q2
28
Q3
30
Q1
27
Q1
Long-term growth
Forecast
Actual
30
20
10
0
-10
-20
-30
China GDP YoY%
Annual Report 2025 | Standard Chartered 267
Risk review and Capital review
2025 year-end forecasts
China Hong Kong
GDP growth
(YoY%)
Unemployment
%
3-month
interestrates
%
House prices
5
(YoY %)
GDP growth
(YoY%)
Unemployment
%
3-month
interestrates
%
House prices
8
(YoY %)
Base forecast
1
2025 4.9 3.5 1.7 (3.8) 2.8 3.6 3.2 (4.0)
2026 4.3 3.4 1.5 (2.0) 2.5 3.6 3.5 4.2
2027 4.1 3.3 1.4 (1.2) 2.5 3.3 3.5 5.0
2028 3.9 3.3 1.4 (0.3) 2.1 3.2 3.5 4.3
2029 3.5 3.3 1.4 0.9 1.5 3.2 3.5 3.9
5-year average
2
3.8 3.3 1.4 (0.1) 2.0 3.3 3.5 4.2
Quarterly peak 4.7 3.4 1.5 2.3 2.6 3.7 3.5 5.7
Quarterly trough 3.3 3.3 1.4 (2.5) 1.1 3.2 3.5 2.3
Monte Carlo
Low
3
(6.9) 2.9 (0.3) (8.3) (4.3) 1.7 (0.8) (21.0)
High
4
14.3 3.8 3.6 15.4 7.5 5.5 7.4 33.9
2025 year-end forecasts
Singapore Korea
GDP growth
(YoY%)
Unemployment
6
%
3-month
interestrates
%
House prices
(YoY %)
GDP growth
(YoY%)
Unemployment
%
3-month
interestrates
%
House prices
(YoY %)
Base forecast
1
2025 4.2 2.9 1.8 3.8 1.0 3.0 2.7 0.1
2026 2.0 3.0 1.1 3.0 2.0 3.2 2.4 0.5
2027 2.9 2.8 2.1 2.6 1.8 3.1 2.3 1.2
2028 3.2 2.8 3.0 2.7 2.0 3.0 2.3 1.7
2029 2.6 2.8 3.0 2.7 2.1 3.0 2.3 1.7
5-year average
2
2.7 2.8 2.4 2.8 2.0 3.1 2.3 1.3
Quarterly peak 4.3 3.0 3.0 3.7 2.6 3.2 2.4 1.7
Quarterly trough 0.5 2.8 1.0 2.6 1.5 3.0 2.3 0.4
Monte Carlo
Low
3
(5.5) 1.7 (0.4) (16.8) (3.4) 1.1 (1.0) (6.4)
High
4
9.8 4.3 6.4 22.5 6.6 5.2 6.3 8.6
2025 year-end forecasts
Brent Crude
$ pb
India
GDP growth
(YoY%)
Unemployment
7
%
3-month
interestrates
%
House prices
(YoY %)
Base forecast
1
2025 6.9 NA 5.5 5.0 69.1
2026 6.5 NA 6.0 6.3 63.4
2027 6.5 NA 6.4 6.4 66.9
2028 6.4 NA 6.5 6.3 70.8
2029 6.2 NA 6.5 6.2 72.3
5-year average
2
6.3 NA 6.3 6.3 69.5
Quarterly peak 6.5 NA 6.5 6.5 75.2
Quarterly trough 5.9 NA 5.8 6.1 62.0
Monte Carlo
Low
3
3.0 NA 1.0 2.0 30.0
High
4
10.5 NA 13.7 10.6 146.5
Credit Risk (audited)
Standard Chartered | Annual Report 2025268
2024 year-end forecasts
China Hong Kong
GDP growth
(YoY%)
Unemployment
%
3-month
interestrates
%
House prices
5
(YoY %)
GDP growth
(YoY%)
Unemployment
%
3-month
interestrates
%
House prices
8
(YoY %)
5-year average
2
4.1 3.3 1.7 (1.3) 2.2 3.1 2.4 3.8
Quarterly peak 5.3 3.5 1.9 2.3 3.5 3.2 2.9 6.8
Quarterly trough 3.2 3.1 1.6 (5.6) 1.5 3.0 2.1 (2.6)
Monte Carlo
Low
3
(1.0) 2.8 0.6 (10.1) (1.8) 1.8 0.3 (13.1)
High
4
9.3 3.7 3.0 7.8 5.8 5.1 5.3 22.2
2024 year-end forecasts
Singapore Korea
GDP growth
(YoY%)
Unemployment
6
%
3-month
interestrates
%
House prices
(YoY %)
GDP growth
(YoY%)
Unemployment
%
3-month
interestrates
%
House prices
(YoY %)
5-year average
2
2.3 2.7 2.0 2.4 2.0 2.8 2.9 2.8
Quarterly peak 3.4 2.8 2.4 3.2 2.2 2.9 3.2 4.8
Quarterly trough 0.6 2.7 1.6 (0.4) 1.5 2.8 2.9 1.9
Monte Carlo
Low
3
(2.7) 2.0 0.3 (10.5) (1.3) 2.2 0.8 (4.3)
High
4
7.0 3.6 3.9 17.5 5.2 3.5 5.7 9.8
2024 year-end forecasts
India
Brent crude
$ pb
GDP growth
(YoY%)
Unemployment
%
3-month
interestrates
%
House prices
(YoY %)
5-year average
2
6.6 NA 6.0 6.4 76.2
Quarterly peak 7.1 NA 6.2 7.3 77.8
Quarterly trough 5.9 NA 6.0 6.0 74.8
Monte Carlo
Low
3
3.2 NA 1.9 (0.1) 44.5
High
4
10.0 NA 10.3 12.6 107.8
1 Data presented are those used in the calculation of ECL and presented as average growth for the year. These may differ slightly to forecasts presented elsewhere
in the Annual Report as they are finalised before the period end.
2 5-year averages covering 20 quarters from Q1 2026 to Q4 2030 for the 2025 annual report. They cover Q1 2025 to Q4 2029 for the numbers reported for the 2024
Annual Report.
3 Represents the 10
th
percentile in the range of economic scenarios used to determine non-linearity.
4 Represents the 90
th
percentile in the range of economic scenarios used to determine non-linearity.
5 A judgemental management adjustment is held in respect of the China commercial real estate sector.
6 Singapore unemployment rate covers the resident unemployment rate, which refers to citizens and permanent residents.
7 India unemployment is not available due to insufficient data.
8 A judgmental management adjustment is held for risks relating to the property sector in Hong Kong.
Impact of multiple economic scenarios
The Monte Carlo approach generates many alternative
scenarios that cover our global footprint and while the range
of scenarios was restricted through the use of ceilings and
floors applied to the underlying macroeconomic variables,
these were redeveloped in the first half of 2025 to capture
abroader range of outcomes.
Given continuing heightened level of geopolitical and trade
uncertainty, $90 million (31 December 2024: $28 million)
judgemental non-linearity PMAs have been applied,
comprising $63 million (31 December 2024: $13 million)
forCIBand Central and other items, and $27million
(31 December2024: $15 million) for WRB and Ventures.
The total amount of non-linearity has primarily been
estimated by assigning probability weights of 59 per cent,
26per cent and 15 per cent respectively to the Base Forecast,
‘Market Correction’ (MC), and ‘Bank Capital Stress Test’
(BCST) scenarios which are presented on page 273 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 were assigned to the
Base Forecast, ‘Higher for Longer Commodities and Rates’,
and ‘Global Trade and Geopolitical Tensions’ scenarios as
disclosed in the 2024 Annual Report.
The judgemental non-linearity 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 $12 million (31 December 2024: $nil million)
primarily to incorporate non-linearity for portfolios under
aloss rate approach.
The total amount of non-linearity including these PMAs
is$113 million (31 December 2024: $43 million). The CIB and
Central and other items portfolios accounted for $79 million
(31 December 2024: $24 million) of the calculated non-linearity,
with the remaining $34 million (31 December 2024: $19 million)
attributable to WRB and Ventures portfolios.
Annual Report 2025 | Standard Chartered 269
Risk review and Capital review
The impact of multiple economic scenarios on total modelled ECL is set out in the table below, together with the management
overlays and other judgemental adjustments.
Base forecast
$million
Multiple
economic
scenarios
1
$million
Management
overlays
and other
judgemental
adjustments
$million
Total modelled
ECL
2
$million
Total modelled expected credit loss at 31 December 2025 1,061 113 190 1,364
Total modelled expected credit loss at 31 December 2024 1,048 43 190 1,281
1 Includes upwards judgemental PMAs of $90 million (31 December 2024: $28 million).
2 Total modelled ECL comprises stage 1 and stage 2 balances of $1,189 million (31 December 2024: $1,130 million) and $175 million (31 December 2024: $151 million) of
modelled ECL on stage 3 loans.
The average ECL under multiple scenarios is 11 per cent
(31 December 2024: 4 per cent) higher than the ECL
calculated using only the most likely scenario (the Base
Forecast). Portfolios that are more sensitive to non-linearity
include those with greater leverage and/or a longer tenor,
such as commercial real estate, project finance and shipping
finance portfolios. Sovereign exposures also contributed to
increased non-linearity in 2025 as the BCST scenario included
a significant decline in equity indices. Other portfolios
displayed minimal non-linearity owing to limited
responsiveness to macroeconomic impacts for structural
reasons, such as significant collateralisation as with the WRB
mortgage portfolios.
Stage 3 assets
Credit-impaired assets managed by Stressed Asset Group
(SAG) incorporate forward-looking economic assumptions in
respect of the recovery outcomes identified and are assigned
individual probability weightings per IFRS 9. These
assumptions are not based on a Monte Carlo simulation but
are informed by the Base Forecast. Read more on the
assessment of credit-impaired financial assets in Note 8 to
the financial statements on page 344.
Judgemental management adjustments
As at 31 December 2025, the Group held judgemental adjustments for ECL as set out in the table below. All of the judgemental
adjustments have been determined after taking account of the model performance PMAs reported on page 265. They are
reassessed quarterly and are reviewed and approved by the IFRS 9 Impairment Committee (IIC) and will be released when
nolonger relevant.
31 December 2025
Corporate &
Investment
Banking
$million
Wealth & Retail Banking and Ventures
Central &
other
$million
Total
$million
Mortgages
$million
Credit Cards
$million
Other
$million
Total
$million
Judgemental post model adjustments
1
44 (6) (3) 23 14 20 78
Judgemental management overlays 167 – 5 19 24 11 202
Total judgemental adjustments 211 (6) 2 42 38 31 280
Judgemental adjustments by stage:
Stage 1 61 – (4) 15 11 31 103
Stage 2 150 (6) 4 14 12 – 162
Stage 3 – – 2 13 15 – 15
31 December 2024
Judgemental post model adjustments
1
13 – 9 (17) (8) 5
Judgemental management overlays 179 – 5 29 34 213
Total judgemental adjustments 192 – 14 12 26 218
Judgemental adjustments by stage:
Stage 1 27 – 10 (7) 3 30
Stage 2 165 – 5 28 33 198
Stage 3 – – (1) (9) (10) (10)
1 Includes upwards judgemental PMAs of $90 million (31 December 2024: $28 million) relating to non-linearity. Excluding this judgemental PMAs are $12 million
release (31 December 2024: $23 million release).
Credit Risk (audited)
Standard Chartered | Annual Report 2025270
Judgemental PMAs
As at 31 December 2025, judgemental PMAs have been
applied to increase ECL by a net $78 million (31 December
2024: $5 million increase). $90 million (31 December 2024:
$28 million) of the increase in ECL related to multiple economic
scenarios (see ‘Impact of multiple economic scenarios’ section
on page 269). This was partly offset by a reduction of ECL
of$12 million (31 December 2024: $23 million) for certain WRB
models, primarily to adjust for temporary factors impacting
modelled outputs. These will be released when these
factorsnormalise.
Judgemental management overlays
In CIB and Central and other items, judgemental
management overlays of $178 million (31 December 2024:
$179 million) includes:
Hong Kong
The Group’s loans and advances to Hong Kong CRE clients
were $1.5 billion as at 31 December 2025 (31 December 2024:
$2.5 billion), with the decrease due to repayments.
The overlay of $47 million (31 December 2024: $58 million)
inHong Kong reflects subdued economic activity and
increasing commercial property vacancy rates, which
contributes to an uncertain outlook that is not yet fully
reflected in the credit grades and modelled ECL. During 2025,
there has been increased pressure in property prices/
valuations, interest serviceability and repayment capacity.
The risk of further impairment remains as a result of subdued
economic activity in the property sector and the related
liquidity constraints faced by counterparties as a result.
Theoverlay has been determined by estimating the impact
of a deterioration to certain exposures. The decrease from
31 December 2024 was driven by repayments and upgrades.
China CRE
The Group’s loans and advances to China CRE clients
decreased by $1.1 billion to $0.8 billion (31 December 2024:
$1.9 billion), due to debt restructuring related write-offs
andrepayments during the year. Heightened risk
management continues to be carried out on this portfolio
and a management overlay of $36 million (31 December
2024: $70 million) has been retained by estimating the
impact offurther deterioration to exposures in this sector.
The$34 million overlay decrease from 31 December 2024
wasprimarily driven by repayments and utilisation due
tomovement to stage 3.
Other
In CIB and Central and other items, additional overlays
of$95 million (31 December 2024: $51 million) have been
taken in Bangladesh together with marginal amounts for
climate risks and other items. The overlay in Bangladesh
reflects the political situation that 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 a deterioration
tocertain exposures.
In WRB and Ventures, judgemental management overlays
of$24 million (31 December 2024: $34 million) includes
$12 million (31 December 2024: $21 million) in Korea to cover
the risks relating to the failure of two e-commerce payment
platforms in 2024, and marginal amounts for 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 332.
Sensitivity of ECL 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 the 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 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
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.
Annual Report 2025 | Standard Chartered 271
Risk review and Capital review
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)
Hong Kong GDP 2.0 2.6/1.1 1.4 2.2/0.4 0.2 2.8/(7.0)
Hong Kong unemployment 3.3 3.7/3.2 3.8 4.2/3.2 6.7 8.2/4.3
Hong Kong property prices 4.2 5.7/2.3 3.8 5.3/1.0 (3.1) 7.9/(9.9)
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
Period covered from Q1 2026 to Q4 2030.
Base (GDP, YoY%) Market Correction Difference from Base
2026 2027 2028 2029 2030 2026 2027 2028 2029 2030 2026 2027 2028 2029 2030
China 4.3 4.1 3.9 3.5 3.3 2.7 3.5 3.4 3.2 4.0 (1.6) (0.6) (0.5) (0.2) 0.6
Hong Kong 2.5 2.5 2.1 1.5 1.2 1.0 1.8 1.5 1.2 1.4 (1.5) (0.7) (0.6) (0.3) 0.2
US 1.7 1.8 1.9 2.1 2.0 (0.5) 1.0 1.4 1.8 2.4 (2.2) (0.8) (0.5) (0.2) 0.4
Singapore 2.0 2.9 3.2 2.6 2.6 0.2 2.5 2.9 2.4 3.1 (1.8) (0.5) (0.3) (0.2) 0.5
India 6.5 6.5 6.4 6.2 6.1 5.4 6.2 6.1 6.1 6.1 (1.1) (0.3) (0.3) (0.2) (0.0)
Each year is from Q1 to Q4. For example 2026 is from Q1 2026 to Q4 2026.
Base (GDP, YoY%) Bank Capital Stress Test Difference from Base
2026 2027 2028 2029 2030 2026 2027 2028 2029 2030 2026 2027 2028 2029 2030
China 4.3 4.1 3.9 3.5 3.3 0.7 0.6 4.3 4.2 4.0 (3.6) (3.5) 0.4 0.7 0.7
Hong Kong 2.5 2.5 2.1 1.5 1.2 (3.4) (3.4) 2.6 2.6 2.6 (5.9) (5.9) 0.4 1.1 1.4
US 1.7 1.8 1.9 2.1 2.0 (1.4) (1.9) 1.2 1.3 1.3 (3.1) (3.8) (0.7) (0.8) (0.8)
Singapore 2.0 2.9 3.2 2.6 2.6 (2.4) (3.2) 3.5 3.6 3.6 (4.4) (6.1) 0.3 1.0 1.0
India 6.5 6.5 6.4 6.2 6.1 2.5 3.2 6.2 6.2 6.3 (4.0) (3.3) (0.2) (0.1) 0.3
Each year is from Q1 to Q4. For example 2026 is from Q1 2026
to Q4 2026.
The total modelled stage 1 and 2 ECL provisions (including
both on and off-balance sheet instruments) would be
approximately $101 million higher under the ‘MC’ scenario,
and $498 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). Stage 2 exposures as a proportion of stage 1 and 2
exposures would increase from 2.2 per cent in the base case
to 2.3 per cent and 3.5 per cent respectively under the ‘MC’,
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 both scenarios, the majority of the increase in ECL in
CIB came from the Corporate, commercial real estate and
Sovereign portfolios. For the main corporate portfolios, ECL
would increase by $44 million and $23 million for ‘MC’, and
‘BCST’ roll-forward scenarios respectively and the proportion
of stage 2 exposures would increase from 3.6 per cent in the
base case to 4.1 per cent and 4.7 per cent respectively.
For the WRB portfolios, most of the increase in ECL came
from the unsecured retail portfolios, particularly the credit
card portfolios in Hong Kong and Singapore and Private
Banking, although Mortgages in Korea and Malaysia were
also impacted in the BCST scenario. Under the ‘MC’, and
‘BCST’ roll-forward scenarios, credit card ECL would increase
by $7 million and $51 million respectively, largely in the
Singapore and Hong Kong portfolios and the proportion
ofstage 2 credit card exposures would increase from 2.4 per
cent in the base case to 2.7 per cent and 4.6 per cent for
eachscenario respectively, with the Singapore portfolio
mostimpacted. Mortgages ECL would increase by $2 million
and $29 million for each scenario respectively, with portfolios
in Korea and Malysia impacted in the ‘BCST’ scenario and the
proportion of stage 2 mortgages would increase from 1.5per
cent in the base case to 1.5 per cent and 1.7 per cent
respectively.
There was no material change in modelled stage 3
provisionsas these primarily relate to unsecured WRB
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.
Credit Risk (audited)
Standard Chartered | Annual Report 2025272
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.
Gross as
reported
1
$million
ECL as
reported
2
$million
ECL
Base case
$million
Market
Correction
$million
Bank Capital
Stress Test
$million
Stage 1 modelled
Corporate & Investment Banking 412,590 149 127 159 165
Wealth & Retail Banking and Ventures 198,220 404 392 404 420
• Mortgages 82,421 12 11 11 15
• Credit cards 47,125 154 148 148 147
• Other 68,674 238 233 245 258
Central & Other items 179,266 57 34 45 115
Total stage 1 excluding management judgements
4
790,076 610 553 608 700
Stage 2 modelled
Corporate & Investment Banking 13,679 232 198 237 410
Wealth & Retail Banking and Ventures 2,079 144 122 129 208
• Mortgages 1,002 13 12 13 37
• Credit cards 299 81 75 82 127
• Other 778 50 35 34 44
Central & Other items 1,199 5 5 5 58
Total stage 2 excluding management judgements
4
16,957 381 325 371 676
Total Stage 1 & 2 modelled
Corporate & Investment Banking 426,269 381 325 396 575
Wealth & Retail Banking and Ventures 200,299 548 514 533 628
• Mortgages 83,423 25 23 24 52
• Credit cards 47,424 235 223 230 274
• Other 69,452 288 268 279 302
Central & Other items 180,465 62 39 50 173
Total excluding management judgements
4
807,033 991 878 979 1,376
Stage 3 exposures excluding other assets 6,946 3,184
Other financial assets
3
118,232 43
ECL from management judgements
4
190
Total financial assets reported as at 31 December 2025 932,211 4,408
1 Gross balances includes both on- and off- balance sheet instruments; allocation between stage 1 and 2 will differ by scenario.
2 Includes ECL for both on- and off-balance sheet instruments.
3 Includes cash and balances at central banks, Accrued income, Other financial assets; and Assets held for sale.
4 Management judgements are as disclosed on page 270 except for $90 million relating to non-linearity. The difference between total stage 1 and 2 ECL asreported
and the total stage 1 and 2 ECL Base case reflect the total non-linearity of $113 million.
Annual Report 2025 | Standard Chartered 273
Risk review and Capital review
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 across the following portfolios:
Credit Cards (Hong Kong, Singapore, Malaysia, UAE),
Personal Loans (Taiwan, Korea), Business Client Mortgages
(India), and Mortgages (Hong Kong, UAE). In 2025, we have
updated SICR for Hong Kong mortgage, UAE mortgage,
Singapore Credit Cards and Malaysia Credit Cards. The
impact of the threshold changes in 2025 was immaterial.
These thresholds capture both 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
months on book for personal loans; 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 one
to29dayspast due.
The range of thresholds applied are:
Portfolio
Relative
IFRS 9 PD
increase
(%)
Absolute
IFRS 9 PD
increase
(%)
Customer
utilisation
(%)
Months on
book
(months)
Average
IFRS 9 PD
(lifetime %)
Credit cards – Current 70–200 3.4–6.2 85–95 – 4.1–13.5
Credit cards – 1-29 days past due 20–210 2.5–6.1 25–67 – 1.6–9.5
Personal loan – Current 100–250 8.5 – ≥6 –
Personal loan – 1-29 days past due 100–300 8.5 – ≥6 –
Mortgages – Current 100–500 2.7–3.5 – – –
Mortgages – 1-29 days past due 100–700 3.5 – – –
Business Client Mortgages – Current 100 4.4 – – –
Business Client Mortgages – 1-29 days past due 100 7.0 – – –
Credit Risk (audited)
Standard Chartered | Annual Report 2025274
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 significant increase in credit risk is
assumed to have occurred. For Class I and Class III assets
(real-estate lending), a significant increase in credit risk
isassumed to have occurred where the bank is unable to
‘selldown’ the applicable assets to meet revised collateral
requirements 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, supplemented where relevant
byqualitative factors.
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.
Governance of PMAs and application of expert
credit judgement in respect of ECL
The Group’s Credit Policy and Standards framework details
the requirements for continuous monitoring to identify any
changes in credit quality and resultant ratings, as well as
ensuring a consistent approach to monitoring, managing
andmitigating credit risks. The framework aligns with the
governance of ECL estimation through the early recognition
of significant deteriorations in ratings which drive stage 2
and3 ECL.
The models used in determining ECL are reviewed and
approved by the Group Credit Model Assessment Committee
(CMAC) or Delegate Model Approver (DMA), which is
appointed by the Model Risk Committee. CMAC has the
responsibility to assess and approve the use of models and to
review all IFRS 9 interpretations related to models. CMAC also
provides oversight on operational matters related to model
development, performance monitoring and model validation
activities, including standards and regulatory matters.
Prior to submission to CMAC for approval, the models
arevalidated by GMV, a function which is independent
ofthebusiness and the model developers. GMV’s analysis
comprises review of model documentation, model design
andmethodology, data validation, review of the model
development and calibration process, out-of-sample
performance testing, and assessment of compliance review
against IFRS 9 rules and internal standards.
Model performance PMAs
The process of PMA identification, calculation and approval
are prescribed in the Credit Risk IFRS 9 ECL Model Family
Standards, which are approved by the Global Head, Model
Risk Management. PMA calculations are reviewed by GMV
and submitted to CMAC for approval and will be removed
when the estimates return to being within the monitoring
thresholds or validation standards. The level of PMAs and
remediation plans are regularly tracked at CMAC.
Annual Report 2025 | Standard Chartered 275
Risk review and Capital review
Judgemental adjustments
These comprise judgemental PMAs and judgemental
management overlays, and account for events that are
notcaptured in the Base Case Forecast or the resulting ECL
calculated by the models. Judgemental adjustments must
beapproved by the IIC having considered the nature of the
event, why the risk is not captured in the model, and the basis
on which the quantum of the overlay has been calculated.
Judgemental adjustments are subject to quarterly review
andre-approval by the IIC, and will be released when the
risksare no longer relevant.
The IFRS 9 Impairment Committee:
• Oversees the appropriateness of all Business Model
Assessment and Solely Payments of Principal and Interest
(SPPI) tests.
• Reviews and approves ECL for financial assets classified
asstages 1, 2 and 3 for each financial reporting period.
• Reviews and approves stage allocation rules
andthresholds.
• Approves material adjustments in relation to ECL for
fairvalue through other comprehensive income (FVOCI)
andamortised cost financial assets.
• Reviews, challenges and approves base macroeconomic
forecasts and the multiple macroeconomic scenarios
approach that are utilised in the forward-looking
ECLcalculations.
The IIC consists of senior representatives from Risk and
Finance. It meets atleast twice every quarter – once before
the models are run to approve key inputs into the calculation,
and once after the models are run to approve the ECL
provisions and any judgemental management overlays
thatmay be necessary.
The IIC is supported by an expert panel which also reviews
and challenges the base case projections and multiple
macroeconomic scenarios. The expert panel consists of
members of Enterprise Risk Management (which includes
theScenario Design team), Finance, Group Economic
Research and country representatives of major jurisdictions.
Credit Risk (audited)
Standard Chartered | Annual Report 2025276
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 Settlement (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 on page 227.
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 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 $25.4 million,
20per cent higher than 2024 ($21.1 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.
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
Interest Rate Risk 12.7 19.8 7.9 11.5 12.7 22.0 7.0 12.0
Credit Spread Risk 9.7 13.4 5.4 8.6 6.6 9.6 4.8 5.4
Commodity Risk 9.9 21.7 2.9 6.3 4.8 10.0 2.4 4.3
Foreign Exchange Risk 6.3 12.3 3.1 3.9 9.2 15.0 5.0 7.4
Diversification effect (13.2) NA NA (12.8) (12.2) NA NA (8.3)
Total
1
25.4 34.9 15.5 17.5 21.1 33.1 13.0 20.8
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.
Annual Report 2025 | Standard Chartered 277
Risk review and Capital review
Traded risk
Risks not in VaR
In 2025, the main market risks not reflected in VaR were:
• basis risks for which the historical market price data
islimited and is therefore proxied, giving rise to
potentialproxy basis risk that is not captured in VaR
• deal contingent FX and IR derivatives where the risk
ofaspecific condition not being met, typically the closing
of a merger & acquisition transaction, and the derivative
being unwound at a loss is not captured in VaR
• potential depeg risk from currencies currently pegged or
managed, where the historical one-year VaR observation
period may not reflect the possibility of a change in the
currency regime or a sudden depegging
Additional capital is set aside to cover such ‘risks not in VaR’.
Backtesting
In 2025, there were no regulatory backtesting negative
exceptions at Group level.
An enhancement to the VaR model was implemented
fromJanuary 2025 to increase the model’s responsiveness
toabrupt upturns in market volatility.
The graph below illustrates the performance of the VaR
model used in capital calculations. It compares the 99
percentile profit and loss confidence level given by the VaR
model with the hypothetical profit and loss of each day
giventhe actual market movement ignoring any intra-day
trading activity.
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
18.1 28.2 9.9 11.2 17.0 29.9 10.0 17.1
Global Credit 10.9 15.8 6.9 7.2 6.8 11.1 4.3 5.8
Central Funding Desk 9.0 15.6 2.5 6.8 4.1 5.6 2.4 2.8
XVA 3.0 4.9 2.3 2.7 3.3 4.4 2.4 2.4
Diversification effect (15.6) NA NA (10.4) (10.1) NA NA (7.3)
Total
1
25.4 34.9 15.5 17.5 21.1 33.1 13.0 20.8
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.
2025 Backtesting chart
Internal model approach regulatory trading book at Group level
Hypothetical profit and loss (P&L) versus VaR (99 per cent, one day)
80
20
30
40
50
60
70
10
(40)
(20)
(10)
(30)
0
(50)
Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025
Hypothetical P&L Positive VaR at 99% Negative VaR at 99% Positive exceptions Negative exceptions
Standard Chartered | Annual Report 2025278
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
Hong Kong dollar 4,537 5,516 4,232 5,359
Singapore dollar 3,956 – 3,306 –
Chinese Renminbi 2,833 2,558 3,593 1,640
Indian rupee 2,160 3,099 3,480 1,784
Malaysian ringgit 1,637 – 1,539 –
Euro 1,449 – 1,112 –
Taiwanese dollar 1,221 1,135 1,087 1,092
Bangladeshi taka 1,102 – 1,113 –
Korean won 1,010 3,389 1,363 3,048
Thai baht 769 – 763 –
UAE dirham 636 1,852 807 1,470
Pakistani rupee 381 – 392 –
Indonesian rupiah 266 – 230 –
Other 3,848 29 3,407 –
Total 25,805 17,578 26,424 14,393
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’ section.
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 $47 million, 37 per cent higher than 2024 ($34.2 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.
Annual Report 2025 | Standard Chartered 279
Risk review and Capital review
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 41.7 64.6 23.8 39.7 28.0 35.5 17.4 32.5
Credit Spread Risk 18.8 29.0 13.5 13.9 17.2 24.8 10.0 15.7
Commodity Risk 1.8 4.8 0.8 1.6 1.3 1.8 0.6 0.8
Equity Risk – – – – 0.4 0.9 – –
Diversification effect (15.3) NA NA (12.0) (12.7) NA NA (10.2)
Total
2
47.0 66.6 32.3 43.2 34.2 44.3 28.6 38.8
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
Treasury 34.3 47.8 26.0 29.3 32.9 40.8 26.9 38.6
Global Credit 24.2 34.1 9.9 24.1 5.0 13.4 2.4 8.8
Macro Trading 1.8 4.8 0.8 1.6 – – – –
Listed Private Equity – – – – 0.4 0.9 – –
Diversification effect (13.3) NA NA (11.8) (4.1) NA NA (8.6)
Total
2
47.0 66.6 32.3 43.2 34.2 43.3 28.6 38.8
1 The non-trading book VaR generally does not include fair value loans.
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.
Traded risk
Standard Chartered | Annual Report 2025280
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’s Liquidity and Funding Risk framework requires
each country to ensure that it operates within predefined
liquidity limits and remains in compliance with Group liquidity
policies and practices, as well as local regulatory requirements.
The Group achieves this through a combination of setting
Risk Appetite and associated limits, policy formation, risk
measurement and monitoring, prudential and internal stress
testing, governance and review.
Throughout 2025, the Group retained a robust liquidity
position across key metrics. The Group continues to focus
onimproving the quality and diversification of its funding
mixand remains committed to supporting its clients.
Primary sources of funding (audited)
The Group’s funding strategy is largely driven by its policy
tomaintain adequate liquidity at all times, in all countries.
This is done to ensure the Group can meet all of its obligations
as they fall due. The Group’s funding profile is therefore well
diversified across different sources, maturities and currencies.
The Group‘s assets are funded predominantly by customer
deposits, supplemented with wholesale funding, which
isdiversified by type and maturity.
The Group maintains access to wholesale funding markets
inall major financial centres in which it operates. This seeks
toensure that the Group has market intelligence, maintains
stable funding lines and can obtain optimal pricing when
performing cash flow management activities.
In 2025, the Group issued approximately $10 billion worth
ofsecurities from its holding company, Standard Chartered
PLC. The issuances included $2 billion of Additional Tier 1
securities and approximately $8 billion of senior debt
securities across multiple currencies. Over this same period,
there were Additional Tier 1 calls of $1 billion, Tier 2 calls of
around $2.1 billion and senior debt redemptions (calls and
maturities) of $4.9 billion. There is approximately $7.8 billion
of the Group’s Additional Tier 1, senior and subordinated debt
securities that are either falling due for repayment contractually
or callable by the Group before the end ofQ42026.
Liquidity and Funding Risk metrics
The Group continually monitors key liquidity metrics, both
ona country basis and consolidated across the Group.
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 is a regulatory requirement set to ensure the Group
has sufficient unencumbered high-quality liquid assets
tomeet its liquidity needs in a 30-calendar-day liquidity
stressscenario.
The Group monitors and reports its liquidity positions under
the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook
and has maintained its LCR above the prudential requirement.
The Group maintained robust liquidity ratios throughout 2025.
At the reporting date, the Group LCR was 155 per cent
(31 December 2024: 138 per cent), with a surplus to both
Board-approved Risk Appetite and regulatory requirements.
Adequate liquidity was held across our footprint to meet
alllocal prudential LCR requirements where applicable.
TheLiquidity buffer reported below is after deductions
madeto reflect the impact of limitations in the transferability
of liquidity held at an entity level across the Group.
Thisresulted in an adjustment of $44 billion to LCR HQLA
asat 31 December 2025.
2025
$million
2024
$million
Liquidity buffer 194,827 170,306
Total net cash outflows 125,383 123,226
Liquidity coverage ratio 155% 138%
Stressed coverage
The Group intends to maintain a prudent and sustainable
funding and liquidity position, in all countries, such that it can
withstand a severe but plausible liquidity stress.
4.5% 7.9%63.6%9.7% 7.4%1%5.9%
Equity
Customer accounts
Derivative financial instrumentsSubordinated liabilities and other borrowed funds
Deposit by banks
Debt securities in issue
Other liabilities
Group’s composition of liabilities and equity 31 December 2025
Annual Report 2025 | Standard Chartered 281
Risk review and Capital review
Liquidity and Funding Risk
Our approach to managing liquidity and funding is reflected
inthe Board-level Risk Appetite Statement which includes
thefollowing:
“The Group should have sufficient stable and diverse sources
offunding to meet its contractual and contingent obligations
asthey fall due.”
The 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 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.
ILAAP stress testing results show that, as at 31 December 2025,
Group and all countries were able to survive for a period of time
with positive surpluses as defined under each scenario. The
results take into account currency convertibility and portability
constraints while calculating the liquidity surplus at Group level.
Standard Chartered Bank’s credit ratings as at 31 December
2025 were A+ with stable outlook (Fitch), A+ with stable outlook
(S&P) and A1 with stable outlook (Moody’s). As of 31 December
2025, the estimated contractual outflow of a three-notch
long-term ratings downgrade is $1.3 billion.
Advances-to-deposits ratio
This is defined as the ratio of total loans and advances to
customers relative to total customer deposits. An advances-to-
deposits ratio below 100 per cent demonstrates that customer
deposits exceed customer loans as a result of the emphasis
placed on generating a high level of funding from customers.
The Group’s advances-to-deposits ratio has remained stable
in2025 at 51.4 per cent. Deposits from customers as at
31 December 2025 are $549,575 million (31 December 2024:
$486,261 million).
2025
$million
2024
$million
Total loans and advances to
customers
1,2
282,427 259,269
Total customer accounts
3
549,575 486,261
Advances-to-deposits ratio 51.4% 53.3%
1 Excludes reverse repurchase agreement and other similar secured lending
of$8,242 million (31 December 2024: $9,660 million) and includes loans
andadvances to customers held at fair value through profit and loss
of$12,355 million (31 December 2024: $7,084 million).
2 Loans and advances to customers for the purpose of the advances-to-deposits
ratio excludes $8,474 million of approved balances held with central banks,
confirmed as repayable at the point of stress (31 December 2024: $19,187 million).
3 Includes customer accounts held at fair value through profit or loss
of$19,414 million (31 December 2024: $21,772 million).
Net stable funding ratio (NSFR)
The NSFR is a PRA regulatory requirement that stipulates
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. The regulatory requirements for NSFR are to maintain
aratio of at least 100 per cent. The average ratio for the past
four quarters is 139 per cent.
Liquidity pool
The liquidity value of the Group’s LCR eligible liquidity pool
atthereporting date was $195 billion. The figures in the table
below account for haircuts, currency convertibility and portability
constraints per PRA rules for transfer restrictions (amounting
to$44 billion as at 31 December 2025), 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.
2025
$million
2024
$million
Level 1 securities
Cash and balances at central
banks 78,290 76,094
Central banks, governments /
public sector entities 101,122 74,182
Multilateral development banks
and international organisations 10,623 14,386
Other 396 343
Total Level 1 securities 190,431 165,005
Level 2 A securities 3,643 4,367
Level 2B securities 753 934
Total LCR eligible assets 194,827 170,306
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
valued through other comprehensive income are used by the
Group principally for liquidity management purposes.
Standard Chartered | Annual Report 2025282
As at the reporting date, assets remain predominantly short-dated, with 58 per cent maturing in less than one year.
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 66,116 – – – – – – 11,630 77,746
Derivative financial instruments 15,827 11,627 10,412 5,333 3,983 5,451 8,309 4,840 65,782
Loans and advances to banks
1,2
21,323 21,142 12,878 6,884 5,379 7,437 3,672 1,858 80,573
Loans and advances to customers
1,2
78,546 42,487 20,359 15,298 14,309 41,579 34,064 102,943 349,585
Investment securities
1
20,439 36,061 19,632 17,255 15,152 33,157 49,952 71,096 262,744
Other assets
1
18,173 50,528 1,406 994 1,474 388 31 10,531 83,525
Total assets 220,424 161,845 64,687 45,764 40,297 88,012 96,028 202,898 919,955
Liabilities
Deposits by banks
1,3
32,466 2,001 1,370 690 644 2,105 2,359 4 41,639
Customer accounts
1,4
415,483 42,912 29,297 12,974 13,881 8,931 58,405 3,291 585,174
Derivative financial instruments 16,630 14,829 9,795 5,701 3,534 5,145 8,392 4,178 68,204
Senior debt
5
879 1,513 2,665 1,948 1,500 9,190 19,390 22,503 59,588
Other debt securities in issue
1
2,885 3,412 9,108 5,880 3,725 2,188 1,384 697 29,279
Other liabilities 17,665 40,951 3,453 1,054 1,413 1,485 1,892 4,738 72,651
Subordinated liabilities and other
borrowed funds 16 60 25 154 14 1,442 741 6,382 8,834
Total liabilities 486,024 105,678 55,713 28,401 24,711 30,486 92,563 41,793 865,369
Net liquidity gap (265,600) 56,167 8,974 17,363 15,586 57,526 3,465 161,105 54,586
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 55,646 – – – – – – 7,801 63,447
Derivative financial instruments 22,939 15,556 12,217 7,265 4,328 7,067 7,448 4,652 81,472
Loans and advances to banks
1,2
22,381 21,722 10,588 6,771 4,986 8,407 3,715 1,990 80,560
Loans and advances to customers
1,2
65,688 58,765 25,739 15,479 16,192 31,240 31,766 94,688 339,557
Investment securities
1
13,016 25,886 21,546 14,789 14,688 32,815 41,423 62,418 226,581
Other assets
1
12,601 32,130 1,333 381 931 71 64 10,560 58,071
Total assets 192,271 154,059 71,423 44,685 41,125 79,600 84,416 182,109 849,688
Liabilities
Deposits by banks
1,3
24,293 2,345 1,621 848 571 4,342 1,939 3 35,962
Customer accounts
1,4
379,926 37,502 25,863 10,152 10,123 9,695 47,367 2,635 523,263
Derivative financial instruments 21,680 17,115 11,773 7,018 4,353 6,660 8,144 5,321 82,064
Senior debt
5
609 1,755 4,074 2,132 932 7,926 18,784 17,886 54,098
Other debt securities in issue
1
2,734 2,663 6,550 4,535 5,015 851 1,206 688 24,242
Other liabilities 12,173 43,574 3,020 1,441 155 4,494 682 2,854 68,393
Subordinated liabilities and other
borrowed funds – 64 23 180 13 359 1,978 7,765 10,382
Total liabilities 441,415 105,018 52,924 26,306 21,162 34,327 80,100 37,152 798,404
Net liquidity gap (249,144) 49,041 18,499 18,379 19,963 45,273 4,316 144,957 51,284
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 13 Financial instruments.
2 Loans and advances include reverse repurchase agreements and other similar secured lending of $96.1 billion (31 December 2024: $98.8 billion).
3 Deposits by banks include repurchase agreements and other similar secured borrowing of $8.5 billion (31 December 2024: $8.7 billion).
4 Customer accounts include repurchase agreements and other similar secured borrowing of $35.6 billion (31 December 2024: $37.0 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.
Annual Report 2025 | Standard Chartered 283
Risk review and Capital review
Liquidity and Funding Risk
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 (audited)
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 with 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.
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 32,536 2,012 1,381 704 658 2,137 2,395 4 41,827
Customer accounts 416,850 43,261 29,727 13,247 14,222 9,090 58,627 4,033 589,057
Derivative financial instruments 67,101 13 35 34 51 110 492 512 68,348
Debt securities in issue 4,081 5,139 12,176 8,290 5,590 13,118 24,492 26,510 99,396
Subordinated liabilities and other
borrowed funds 35 116 50 164 15 1,529 978 11,934 14,821
Other liabilities 16,179 41,722 3,276 1,044 1,410 1,485 1,892 6,171 73,179
Total liabilities 536,782 92,263 46,645 23,483 21,946 27,469 88,876 49,164 886,628
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
Deposits by banks 24,303 2,360 1,660 862 589 4,347 1,939 4 36,064
Customer accounts 380,377 37,790 26,277 10,384 10,438 9,937 47,642 3,396 526,241
Derivative financial instruments 80,055 13 12 10 3 216 592 1,163 82,064
Debt securities in issue 3,622 4,551 11,007 7,056 6,319 10,261 23,184 21,337 87,337
Subordinated liabilities and other
borrowed funds 19 134 46 206 14 392 2,345 13,800 16,956
Other liabilities 10,421 44,933 2,894 1,408 152 4,433 682 4,802 69,725
Total liabilities 498,797 89,781 41,896 19,926 17,515 29,586 76,384 44,502 818,387
Standard Chartered | Annual Report 2025284
Interest Rate Risk in the Banking Book
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. 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
HKD bloc
$million
SGD bloc
$million
GBP bloc
$million
CNY bloc
2
$million
JPY bloc
$million
EUR bloc
$million
Other
currency
bloc
1
$million
Total
$million
+ 50 basis points 50 60 20 20 – 10 20 80 260
- 50 basis points (90) (30) (20) (20) (10) (10) (20) (90) (290)
+ 100 basis points 90 120 30 50 – 20 30 160 500
- 100 basis points (170) (80) (30) (50) (30) (30) (40) (190) (620)
2024
+ 50 basis points 20 30 10 10 20 10 10 100 210
- 50 basis points (40) (30) (20) (10) (30) (10) (20) (110) (270)
+ 100 basis points 30 60 20 20 30 10 30 190 390
- 100 basis points (90) (50) (40) (30) (50) (20) (40) (230) (550)
1 The largest exposures within the Other currency bloc are TWD and KRW.
2 The +50bps and +100bps CNY sensitivities are positive, but round to zero.
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
$260 million. The equivalent impact from a parallel decrease
of 50 basis points would result in a reduction in projected
NIIof $290 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 $500 million.
Theequivalent impact from a parallel decrease of 100 basis
points would result in a reduction in projected NII of$620 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. NII sensitivity in falling
rate scenarios has increased versus 31 December 2024, due to
an increase in balance sheet size, with assets repricing faster
than liabilities, and due to lower HIBOR rates. This impact
was partially offset by an increase in programmatic hedging.
Over the course of 2025, the notional of interest rate swaps,
Hold to Collect (HTC)-accounted bond portfolios and fixed
rate commercial assets used to reduce NII sensitivity through
the cycle increased from $80 billion to $109 billion. As at
31 December 2025, the $87 billion interest rate swaps and
HTC-accounted bond portfolios had a yield of 3.4 per cent
and a weighted average maturity of 2.5 years, which reflects
the behaviouralised lives of the rate-insensitive deposit and
equity balances that they hedge.
Annual Report 2025 | Standard Chartered 285
Risk review and Capital review
Operational and Technology Risk profile
Operational and Technology risks remain elevated in areas
such as Operational Resilience, Third-Party Risk Management,
Change Mismanagement Risk and Transaction Processing
Risk, which are being addressed by ongoing processes and
system enhancement programmes.
The Group continues to monitor and manage Operational
and Technology risks associated with external factors such
asgeopolitical factors, Nth Party Risk and the risk arising
fromadoption and use of Artificial Intelligence. This enables
the Group to keep pace with new business developments,
whilst ensuring that its risk and control frameworks evolve
accordingly. The Group continues to enhance its risk
management capabilities to understand the full spectrum
ofrisks in the operating environment, strengthen its defences
and improve its overall resilience.
Operational and Technology 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 2024
1
Agency Services 8.9% 0.0%
Asset Management 0.0% 0.0%
Commercial Banking 5.2% 1.3%
Corporate Finance 0.0% 0.1%
Corporate Items 8.1% 61.7%
Payment and Settlements 30.6% 7.6%
Retail Banking 42.1% 27.1%
Retail Brokerage 0.0% 0.0%
Trading and Sales 5.1% 2.2%
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 2024
1
Business disruption and
systemfailures 1.9% 1.7%
Clients products and
businesspractices 1.5% 22.9%
Damage to physical assets 0.0% 0.0%
Employment practices and
workplace safety 0.0% 0.1%
Execution delivery and
processmanagement 78.5% 71.8%
External fraud 12.5% 3.2%
Internal fraud 5.6% 0.3%
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
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 of 5 January 2026.
Standard Chartered | Annual Report 2025286
Environmental, Social and Governance
and Reputational Risk
Environmental, Social and Governance andReputational
(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.
Group ESGR Risk Appetite (RA) Statement
andMetrics
Our ESGR RA Statement as set out on page 223 is approved
annually by the Board and supported by RA metrics and
Management Team Limits
1
(MTLs) across relevant risk types.
The RA metrics are approved on an annual basis by the
Board and the MTLs by the Group Risk Committee, and any
breaches are reported to the Board Risk Committee and the
Group Risk Committee.
For Climate Risk, RA and MTL metrics are set across
Corporate & Investment Banking (CIB) Credit Risk, Wealth &
Retail Banking (WRB) Credit Risk, Country Risk and TradedRisk.
Key metrics are cascaded to all countries that are booked in
Entity Risk Appetite Allocation
2
(ERAA) locations. The country
ESGR Risk profile is also reviewed at country-level risk
committees for all ERAA markets.
Managing Climate Risk
An environmental (such as climate), social or governance
event, or change in condition, if it occurs, could result
inactualor potential financial loss or non-financial
detriments to the Group.
As such, Climate Risk is identified as a material risk for the
Group, which manifests through the Group’s businesses and
operations and impacts the relevant Principal Risk Types
3
(PRTs). The Group is exposed to Climate Risk through our
clients, own operations, vendors, suppliers and from the
industries and markets that we operate in. Therefore,
wefocus our disclosures on how climate-related risks are
governed, managed and embedded in our business.
We manage Climate Risk according to the characteristics
ofthe relevant PRTs. Risk Framework Owners for the relevant
PRTs are responsible for embedding Climate Risk requirements
within their respective risk types. In 2025, wehave continued
to embed Climate Risk into existing risk management
frameworks and processes. The Climate Risk identification
and assessments across the PRTs span short-, medium-
andlong-term horizons to enable the right level of monitoring
and to inform the decision-making process. Read more on
page 108 for more information on thedefinitions forshort-,
medium- and long-term horizons. Refer to the Credit Risk
–CIB and WRB sections, Operational, Technology andCyber
Risk (OTCR), Country Risk, Traded Risk, Treasury Riskand
Model Risk for more information on how Climate Risk
impactsthe relevant PRTs.
Disclaimer
For the avoidance of doubt, this ESGR Risk section is subject to the statements included in (i) the ‘Forward-looking statements’ section; and (ii) the ‘Basis of preparation
and caution regarding data limitations’ section provided under ‘Important Notices’ on page 467.
Climate Risk Taxonomy
Climate Risk
The potential for financial loss and non-financial detriments arising from climate
change and society’s response to it. It manifests through the Group’s businesses
andoperations and may impact a variety of PRTs.
Physical Risk
Risks arising from increasing severity and frequency of climate and weather-related
events, which can damage property and other infrastructure, disrupt supply chains
and impact food production. This could lead to declining asset valuations and
challenges with insurance claims, resulting in greater financial losses. Indirect effects
on the macroeconomic environment, such as lower output and productivity, may
exacerbate these direct impacts.
Physical Risk: Acute
Specific event-driven weather events, including increased severity of extreme
weather events, such as cyclones, hurricanes, floods or wildfires.
Physical Risk: Chronic
Longer-term shifts in climate patterns, such as changing precipitation patterns,
sea-level rise and longer-term drought.
Transition Risk
Risks arising from the adjustment towards a carbon-neutral economy, which will
require significant structural changes to the economy. These changes will prompt
areassessment of a wide range of asset values, a change in energy prices and a fall
in income and creditworthiness of some borrowers. In turn, this could lead to credit
losses for lenders and market losses for investors.
1 Management Team Limits (MTLs) complement the Risk Appetite and enable the Management Team and the Risk Framework Owners (RFOs) tofine tune
adherence to the RA and performance.
2 These are allocated by the Group to booking locations that are selected according to internally defined materiality criteria.
3 Refer to the Principal Risks section for more information on the relevant risk types. The strategic impact of Country Risk is considered alongside other Climate Risks.
Annual Report 2025 | Standard Chartered 287
Risk review and Capital review
ESGR Risk
The Board committees consider climate-related risks and
opportunities when reviewing and guiding strategic decisions.
Board-level oversight is exercised through the Board Risk
Committee, and regular Climate Risk updates are provided
tothe Board and the Board Risk Committee. At an executive
level, the Group Risk Committee has appointed the Group
Responsibility and Reputational Risk Committee (GRRRC),
consisting of senior representatives from business, risk and
other functions such as Legal, Compliance, Financial Crime
and Conduct Risk (CFCR) and Corporate Affairs, Brand and
Marketing (CABM), to oversee the effective management
ofthe ESGR Risk Type Framework and ensure that the
Climate Risk profile remains within RA.
Key financial regulators across our footprint have proposed
orset supervisory expectations on climate and environmental
risk management. Those expectations are broadly aligned
with the Basel Committee principles for the management
ofclimate-related financial risks, but local implementation
varies. We actively engage with industry bodies and
regulators to seek consistency in policy making across our
markets. Climate Risk-related regulatory developments and
obligations set by both financial and non-financial service
regulators are tracked at Group and country level, with roles
and responsibilities set out in the Group’s ESGR Risk Policy.
Read more on the Group’s governance approach for
climate-related risks and opportunities on page 107
Processes for identifying, assessing, prioritising
and monitoring Climate Risks
Climate-related events continue to unfold globally,
accompanied by rising regulatory expectations across the
various jurisdictions where the Group operates. In response,
we apply a structured process to identify, assess, prioritise
and monitor climate-related risks across our operations and
credit portfolios. Climate Risks are identified through a mix
ofqualitative and quantitative information, including Climate
Risk Assessments (CRAs) and climate scenario analysis.
Wecontinue to enhance our existing CRA framework to
strengthen the evaluation of a client’s exposure to climate-
related risks. Ongoing improvements to the questionnaire
used for CRAs have been made in 2025 to incorporate more
granular climate data, reflecting advances in data quality
and availability along with the introduction of a Physical
Riskgrading. These enhancements support the integration
ofclimate considerations in credit risk analysis and portfolio
management. In addition, we also measure the climate risks
arising from our own properties, data centres and vendors,
enabling the Group to make more informed and forward-
looking decisions that are aligned with our sustainability
objectives. Various toolkits are used to quantitatively
measureclimate-related Physical and Transition Risks.
Theserisks can result in impacts to other PRTs.
Stress testing and scenario analysis are used to assess the
impact of Climate Risk and this is described in greater detail
in the Scenario Analysis section on page 298.
Internal training programmes to better identify
and mitigate Climate Risk
To effectively embed climate risks across the Group, we
continue to run a comprehensive eight-module role-specific
Climate Risk training programme tailored to specific roles.
The Climate Risk training includes a core module covering
climate change science, transition scenarios, CRAs and Net
Zero targets and alignment calculations, and sector-specific
training, focusing on Oil and Gas, Power, Steel, Aluminium,
Shipping and Automobile clients. This has augmented our
existing foundational sustainability training, which covers
Climate Risk at a basic level. We recognise that various
countries have been stepping up their regulatory requirements
and monitoring in relation to Climate Risk. Inresponse to
thistrend, Climate Risks are being included asa key topic for
discussion in internal knowledge sharing programmes for risk
functions and training programmes fornew joiners. Periodic
training sessions on Climate Risk integration continue to be
provided to the first and second line of defence to further
strengthen the understanding ofClimate Risk and its
application within the Group.
Limitations with existing tools and data
We recognise that assessing Climate Risk has its limitations
as quantifying approaches are still evolving:
• Data availability and client coverage continue to pose
challenges, especially in emerging markets. With the limited
coverage of granular client-level information at both Group
and entity level, there is reliance on proxies, e.g. sector and
regional averages, sovereign heatmaps, and credit grade
projections and movements.
• Most tools and modelling approaches present a gross risk
profile that often overlooks existing adaptation measures, as
well as government policies to protect and build for changing
climate. Assumptions in climate modelling also continue to
relyon nascent methodologies that do not factor non-linear
shifts and complex feedback loops or the social dimension
ofclimate change.
• Over time, sovereigns and policymakers are expected to
drivemarket trends, such as investment in adaptation plans,
technological advancements, innovative risk transfer and
mitigation approaches to combat the potential impacts
ofclimate change.
• Notwithstanding the above, we continue to observe an
improvement in data quality and coverage. We have also
streamlined our processes and are continuing to pursue the
initiative to have a centralised data store, which enables the
Group to capture all sustainability-related data for our clients.
This includes monitoring of data quality, which reduces the
usage of proxies over time. Wecontinue to refine our
evaluations and methodologies progressively asthe
availability and quality of data improves.
The data that we have captured through various sources
hashelped us develop our client-level CRAs for existing
andnew clients, improve our internal climate modelling
capabilities and strengthen the risk measurement and
monitoring of our portfolios.
Looking ahead
We expect a continuing trend of change in the coming
yearsand therefore we intend to: (i) focus on our Physical
Riskmeasurement capabilities; (ii) improve the assessment
ofsector-specific nuances for high-risk emitting sectors and
better integration in credit decisions; (iii) improve Physical
and Transition risk measurement capabilities for a portion
ofour SME clients portfolio; (iv) finalise the development of
an in-house scenario expansion model; (v) expand Climate
Risk model coverage; and (vi) continue to support countries
with local ESGR-related regulations, stress testing
requirements and disclosures.
Standard Chartered | Annual Report 2025288
Climate – Credit Risk
We have continued to enhance our Climate Risk approach, which outlines the approach fora baseline level of effective
riskmitigation.
1. Identify risks and mitigation plans
• Data gathering
• Client outreach
• Scenario analysis
4. Portfolio management and
monitoring
• Credit underwriting principles
• Risk Appetite (% Black or Red)
• High Climate Risk clients monitoring
5. Controls and assurance
• Control Sample Testing
• Independent assurance
2. Analysing the risks
Climate Risk Assessment (BRAG)
Green
Amber
Red
Black
• Review and approval
• BCA analysis
• Risk triggers
• Financial impacts
• Warning signals
3. Evaluating the risk
Business Credit Application (BCA)
5
4
3
2
1
CIB Credit Risk
This section covers details of how we assess Climate Risk for our corporate clients, including insights gained from our client-level
assessments and progress made to further strengthen our framework for climate and credit related portfolio and risk management.
The figure below outlines our process in assessing Climate Risk.
1. Identify risks and mitigation plans
Our client-level Climate Risk Questionnaire (CRQ) helps assess the potential financial risks from climate change using
quantitative and qualitative information. The assessment presents a consolidated view across five pillars of how exposed and
ready for transition or adaptation our clients may be. Out of the five pillars, the first one relates to identifying relevant data
sources and disclosures and is the only section that is not scored.
Data sources
anddisclosures
Gross Physical
Risk
Physical Risk
adaptation
Gross Transition
Risk
Credibility of Transition
Plans (CTPs)
Reporting
• Sources of data
• Level of disclosures,
Carbon Disclosures
Project rating
Exposure to acute
andchronic events
• Asset locations
exposed to
PhysicalRisk events
(flood, storms,
droughts, etc.)
• Model output to
assess current and
future risk to client’s
operating locations
Mitigations to acute
and chronic events
• Assessment of
client’s adaptation
plans
• Insurance
coverage to
protect against
Physical Risk
Relative emissions
forsector and region
• Reliance on fossil
fuel/carbon
products, net zero
trajectory
alignment
• Policy –
environmental
impact due to
sovereign
decarbonisation
policy in sector
• Potential financial
impact from various
climate scenarios
Decarbonisation plan,
governance and
emission targets
• Assess client’s plans
and their credibility
totransition their
business and supply
chain backed by
robust governance
mechanisms
• Emissions reporting
targets and plan
toachieve them
• Capex in low-carbon
technologies, internal
carbon pricing
scenarios
Annual Report 2025 | Standard Chartered 289
Risk review and Capital review
ESGR Risk
The CRQ helps us to form a view of the overall Climate Risk profile of our clients and supports the underlying themes that
feedinto our broader scenario analysis, and corporate planning exercises and Net Zero portfolio alignment. In October 2025,
weenhanced our CRQ by introducing a client-level Physical Risk BRAG Grading in order to identify and monitor key risk hotspots
inthe CIB portfolio regarding clients’ exposure to extreme weather events. Read more on Analysing the Climate Risk BRAG
ratings on page 291.
Coverage of our analysis
As at September 2025, we have completed CRAs for 4,209 clients, representing circa 71 per cent of our corporate client limits.
The levels and consistency in the availability of climate information from public disclosures has increased in the last three
years.However, this is still a developing aspect in some of our footprint markets where the transition journey is in a nascent
stage. Thedifference between our own ambitions and the nationally determined contributions in some of our markets has
furtherhighlighted the importance of engaging with our clients on this topic, so we are able to assess clients across our
marketsappropriately.
Read more on our Net Zero aspiration on pages 90 to 110
How different markets in our footprint compare
Clients are assessed across the four pillars relating to gross Physical and Transition Risks, as well as their respective mitigation
levels, i.e. Physical Risk adaptation and credibility of transition plan, each of which are scored between 0 and 100 per cent.
Alower score for risk levels and a higher score for mitigation levels indicates a better result (i.e. lower risk or higher mitigation
levels). The average of these scores across all assessed clients by market is shown below.
Client-level Climate Risk Assessment scores by markets
YTD Assessment as of September 2025 Number of clients
Gross
Physicalscore
Physical Risk
adaptation
Gross
TransitionRisk
Credibility of
Transition Plan
Asia – Greater China & North Asia (GCNA) 1,638 61% 39% 52% 61%
Asia – ASEAN & South Asia (ASA) 994 61% 33% 52% 53%
Africa & Middle East (AME) 348 67% 18% 53% 38%
Europe & Americas (E&A) 1,229 69% 52% 51% 75%
Total 4,209 64% 40% 52% 61%
• Transition Risk scores remained stable and improved across regions.
– We continue to see better Credibility of Transition Plan (CTP) and Physical Risk adaptation scores for corporates
domiciled in E&A, where disclosure levels are the highest, 2050 Net Zero plans have been committed to, and the plans
toeffectively manage Climate Risk are being put in place.
– There has been a slight slowdown in the pace of transition planning at the corporate level given the continued focus
onenergy security amid increased geopolitical pressures. However, the long-term trend of gradual increase in quantifiable
climate change commitments, driven by increasing CTPs numbers across markets, remains intact.
• Physical Risk adaptation continues to be an area of concern for the majority of our markets, with the lowest absolute scores
inAME followed by Asia.
• Asia continues to dominate our total volume of clients, with a 63 per cent share of the global client base assessed.
Standard Chartered | Annual Report 2025290
Portfolio Distribution across key markets (%)
Europe &
Americas
Africa &
Middle East
Asia – GCNA Asia – ASA
24
30
22
2
1
15
3
74
70
76
81
Green
Amber Red Black
2. Analysing the Climate Risk BRAG ratings
Each client is assigned a colour-coded Climate Risk rating
(Black ‘B’, Red ‘R’, Amber ‘A’, Green ‘G’ BRAG) based
onthegross Transition Risk and Transition Risk mitigation.
There are currently four types of BRAG ratings assigned
toclients.
Black Clients are deemed to have very high exposure
toTransition Risk with little or no mitigation plans
Red Clients are deemed to have very high exposure
toTransition Risk but with acceptable or good
mitigation plans
Amber Clients are deemed to have high exposure
toTransition Risk but with acceptable or good
mitigation plans
Green Clients are deemed to have low or limited
exposure to Transition Risk
The chart below shows the portfolio distribution of clients
from a Transition Risk BRAG perspective across our markets
split by the outstanding exposure as of September 2025.
There are no exposures to Black-rated clients.
Since October 2025, the Physical Risk BRAG, which is based
onthe gross Physical Risk and Physical Risk adaptation has
been introduced, and we expect to provide more information
on the Physical Risk profile of our portfolio in our 2026 Annual
Report when all in-scope clients go through a CRQ refresh
over the next 12 months. The assessment aims to drive better
credit risk decision-making from a Physical Risk perspective,
as we embed this into our risk management approach in2026.
3. Evaluating the risk (linkage to credit process)
Once a Climate Risk grading is assigned to a client, the
impacts from climate-related risks are integrated into
theexisting credit approval process qualitatively and/or
quantitatively through inclusion within the business risk
analysis and financial modelling. If the risks are deemed
material and not adequately represented via the existing
credit rating of the client, subjective warning signals may
beadded to influence the credit rating. Additionally, risk
triggers are added to monitor risks that are not adequately
mitigated and to seek additional information from the
clientwhere applicable.
4. Portfolio management and monitoring
A. Origination stage
We have embedded qualitative and quantitative climate
considerations into the Group’s credit underwriting principles
for Oil and Gas, Metals and Mining, Shipping, Commercial
Real Estate (CRE) and Project Finance portfolios. This includes
introducing portfolio-level caps for Black- and Red-rated
clients and lower preference for emission-intensive transactions.
The underlying principles vary depending on the sector and
are intended to help steer the portfolio in the desired direction
over the medium term, and also consider the Group’s 2030
financed emission targets.
B. Exposure monitoring and RA thresholds
Concentration of Black- and Red-rated clients remains
withinproposed RA thresholds across our portfolio as at
September 2025. Our Green-rated clients are concentrated
inmore developed markets, and this reflects the higher level
of Climate Risk disclosures and governance established by
companies in these markets. Asia has the highest proportion
of exposure which is rated Red. Among the key markets,
Bangladesh, Nepal, Vietnam and Indonesia drive this higher
risk concentration due to a combination of clients that have
fewer disclosures and high Transition Risk, particularly fossil
fuel-heavy industries, and some imposition of policies to
transition the broader nation. This, combined with weaker
transition plans, leads corporates in these markets to be
rated as higher Climate Risks.
C. Credit mitigation – collateral
We have expanded coverage of Climate Risk and Credit Risk
considerations to assess corporate clients’ collateral, given
that they serve as key risk mitigants, especially in default
events. An internal methodology was launched in November
2024 to identify and monitor Physical Risks for property
collateral in CIB. As of September 2025, 351 in scope properties
have been assigned a Collateral BRAG grading (199 Green,
143 Amber and 9 Red). We plan to continue analysing the
underlying risks in the higher risk collaterals and their mitigants
to embed them within our existing processes in 2026.
D. High risk client monitoring
A key strategic focus area is to fully embed Climate Risk and
Net Zero targets into business and credit decisions. To enable
this, the Net Zero Climate Risk Working Forum (Forum) meets
at least quarterly to discuss account plans for high Climate
Risk and Net Zero divergent clients. In 2025, 23 client groups
have been reviewed across the high emitting sectors such
Oiland Gas (ten), Power (four), Steel (two), Automobile
Annual Report 2025 | Standard Chartered 291
Risk review and Capital review
ESGR Risk
Temperature
Alignment
Temperature Alignment
and Comparison
toclientpeers
Credibility of
Transition Plan
Readiness and Robustness
of transition strategy from
client risk assessments
Net Zero Emissions Impact
Influence on Net Zero alignment from both
internalandregional context
Client Level
Transaction Level
Manufacturers (two), CRE (one), Aviation (one), Metals and
Mining (one), Cement (one), and Aluminium (one). The focus
of these meetings is to:
• increase engagement with the selected clients to gain
adeeper understanding of their transition commitments
and the strategies that they have in place to achieve them
• drive proactive management of exposures primarily
inhigh Transition Risk sectors
• identify opportunities to support clients in their
decarbonisation journey through advisory and/or
financing services
• request further information from clients on Physical Risk
adaptation measures employed where Physical Risk
isdeemed to be high
• decide on relationship strategies where appropriate.
To further enhance client engagement and risk
management, including considerations around refinancing
risks, client selection criteria for the Forum is being updated
toformally include vulnerable clients identified from climate
scenario analysis.
5. Controls and assurance
Independent control checks by the first line of defence
andassurance reviews by the second line of defence on
integrating Climate Risk within the credit process are carried
out quarterly to improve the quality and effectiveness of
assessing Climate Risk. The results of the assurance testing
and steps to address gaps are periodically shared with
impacted stakeholders and as part of governance updates
torisk committees.
Assessing ESGR Risks for CIB
We perform additional client-level due diligence for: (i)
corporate clients covered by the Group’s net zero targets
forhigh-carbon sectors (Oil and Gas, Power, Steel,
Aluminium,Cement, Automobiles, Shipping, Aviation, CRE
and Agriculture); (ii) clients with a coal nexus; and (iii) those
that have been assessed at a client-level as high Climate Risk.
Theassessment focuses on three pillars covering both client
and transaction-level aspects:
The above-mentioned due diligence supplements our existing
Environmental and Social (E&S) risk management processes
as well as our oversight against our Position Statements and
Prohibited Activities list. Reviews are conducted at a client-
level through the use of a single ESGR assessment, the CESGRA,
which consolidates Reputational and E&S assessments,
including those related to our Position Statements, and
theadequacy of risk mitigating actions. This includes
considerations such as ringfencing of financing and actions
by the client to address ESGR-related risks. In cases of
non-compliance with the above-mentioned criteria and/
orinthe case of any elevated reputational risk, such clients
areescalated to the relevant CIB Client Review Committee
and/or the GRRRC, where transactions and clients can be
rejected or approval conditions can be set to ensure that the
risks are well managed. Transactions may also be escalated
to the Board, where appropriate.
The Group has governance frameworks and standards for
Sustainable Finance (SF), which set out the requirements and
responsibilities for managing greenwashing risks through the
ongoing monitoring of SF products, transactions and clients
throughout their lifecycle, from labelling to disclosures. The
Green and Sustainable Product Framework, Sustainability
Bond Framework and Transition Finance Framework outline
how we apply the ‘Green’, ‘Social’, ‘Sustainable’ or ‘Transition’
labels across products and transactions. In addition, the E&S
Risk Management (ESRM) Framework provides an overview
of our approach to identifying, assessing and managing
theenvironmental and social risks associated with our
clientrelationships.
SF products are approved by the Sustainable Finance
Governance Committee prior to roll out. SF-labelled
transactions are approved by SF-empowered approvers
(including escalation to ESGR Risk team for sustainability-
linked transactions in sensitive sectors or where the SF
characteristics require further discussion) or the Transition
Finance (TF) Labelling Sub-Committee for TF transactions
ona transaction-by-transaction basis. An assessment toolkit
has been rolled out to standardise the Group’s assessment
ofSF characteristics of sustainability-linked SF transactions;
this serves as the basis for identifying whether escalation
tothe ESGR Risk team is required. The assessment toolkit has
also been digitised in the approval workflows. For post-trade
monitoring of SF transactions, all approval SF conditions are
required to be monitored and tracked in a timely manner.
Anew digitised solution has been rolled out to support the
effective monitoring of these conditions by the deal teams.
To prevent overconcentration of SF liability products, daily
monitoring through an automated dashboard has also
beenestablished. We have enhanced these standards
andcontrols to incorporate requirements from emerging
regulatory obligations and to address the market integrity
and greenwashing concerns from regulators around the
sustainability-linked loan market.
The Group manages the potential risk of greenwashing in
ourmarketing and advertising in line with internal guidance
defining the requirements for the review and approval
ofsustainability-related marketing campaigns and
communications. These requirements have been set out in
the governance standards for segment campaigns, corporate
communications and brand management.
Standard Chartered | Annual Report 2025292
WRB Credit Risk
In 2025, we continued to enhance our capabilities to embed Climate Risk into our monitoring and risk management across
products and segments in the WRB portfolio. In terms of risk assessment coverage, as of September 2025, we have assessed
Physical Risk for 75 per cent and Transition Risk for 69 per cent of the overall WRB portfolio.
1 The level of coverage of Private Banking considers the following: Physical Risk assessment is only conducted for exposures that are backed by property collaterals,
while Transition Risk assessment is limited to exposures that are collateralised by stocks and bonds in industries that are deemed to be vulnerable to transition risk.
2 The proxy Transition Risk assessment for residential mortgages is carried out on an annual basis and has a one-year lag (as at December 2024) due to data
dependencies. The increase in coverage (compared to last year) is mainly due to the extension of the assessment to residential mortgages in Korea.
Outstanding Exposures Assessed ($bn)
Of which
Overall
WRB
Residential
Mortgage
SME
Banking
Private
Banking
1
Credit
Cards
Personal
Loans
(CCPL)
Physical Risk 98.2 79.4 4.7 3.2 10.9
Transition Risk 90.4 68.7
2
2.5 5.0 14.1
Physical Risk measurement and monitoring (%) Transition Risk measurement and monitoring (%)
1. Physical Risk management approach for WRB
Secured portfolios (backed by residential, commercial
orindustrial property)
For our portfolios secured against property collateral, Physical
Risk assessments are conducted for the underlying residential,
commercial or industrial property. We continue to leverage
Munich Re’s Risk Suite to measure acute and chronic Physical
Risks impacting each asset based on their geolocation.
Unsecured portfolios
For our unsecured portfolios, such as credit cards and
personal loans, we recognise that Physical Risks have the
potential to drive higher credit losses through second-order
impacts that affect our clients’ ability to repay, rather than
impact our clients directly. To estimate this, we employ
aproxy methodology to assess the level of Physical Risk
inherently present at the regional and country levels.
Risk monitoring and reporting
Our risk management approach for WRB is underpinned
byarobust monitoring and escalation process. We assess
exposure concentrations within our portfolios that are subject
tohigh risk across acute and chronic hazards quarterly
andreport these at Group and country risk management
committees. Wefocus on flood risk and the risk of rising
sealevels, due to the inherent physical characteristics of
ourkeyoperating markets. Throughout 2025, physical risk
levelsacross most products and markets have remained
largelystable.
Risk management
To manage and mitigate Physical Risks in our property-
collateralised portfolios, our primary strategy continues to
relyon the existing credit underwriting process, through the
setting of prudent loan-to-value (LTV) limits, supported by
careful consideration of locations where we accept collateral,
a robust and independent property valuation process, as well
as mandating insurance for the life of the loan. To mitigate
residual risks, which may begin to materialise especially
forour residential mortgages that are subject to sustained
exposure to heightened Physical Risk, some markets have
established zoning policies that involve the identification
ofhigh Physical Risk zones, followed by the implementation
of differentiated underwriting policy criteria for mortgages
which are located in high risk regions.
In addition, where required, ad hoc analyses are conducted
after the occurrence of severe weather events to determine
impacts, and whetherany portfolio corrective actions are
necessary. Toensure Credit Risk in high Physical Risk zones
iswell managed, we monitor our exposures against a RA set
against property collateral that are subjected to high flood
risk with high LTV ratios.
Climate – Credit Risk
Overall
WRB
Residential
Mortgage
SME
Banking
Private
Banking
CCPL
69
31
92
8
28
72
31
69
100
Transition Risk assessed
Transition Risk not assessed
Overall
WRB
Residential
Mortgage
SME
Banking
Private
Banking
CCPL
Physical Risk assessed
Physical Risk not assessed
75
25
99
53
47
20
80
77
23
Annual Report 2025 | Standard Chartered 293
Risk review and Capital review
ESGR Risk
In 2025, the Physical Risk profile across products and markets remained stable, even after the recalibration of flood risk scores
inlate 2024 due to an update in Munich Re’s storm surge model. The table below outlines the Physical Risk concentration
ofourportfolio in key markets, regarding key acute and chronic Physical Risks.
Assessment of acute and chronic Physical Risk for top 10 markets’ exposure backed by property collateral,
indicatingexposure concentration subject to high gross risk (as of September 2025)
Proportion of book
Global Korea Hong Kong Taiwan
21% 36% 9%
Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend
Flood Risk 12.9% 12.5% 10.8% 10.0% 16.3% 16.6% 11.2% 11.2%
100-year Flood Zones
1
5.1% 5.0% 4.2% 3.7% 4.7% 5.1% 2.2% 2.2%
Sea-level rise (Year 2100, RCP 8.5) 2.3% 2.3% 0.6% 0.7% 3.6% 3.6% 0.0% 0.0%
Proportion of book
India Singapore Malaysia UAE
5% 18% 4% 2%
Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend
Flood Risk 17.0% 16.9% 4.4% 4.4% 5.2% 5.3% 5.5% 5.3%
100-year Flood Zones
1
6.9% 7.0% 2.5% 2.6% 2.4% 2.4% 5.0% 4.9%
Sea-level rise (Year 2100, RCP 8.5) 0.9% 0.8% 0.1% 0.0% 0.3% 0.4% 36.0% 35.4%
Proportion of book
Jersey Vietnam China
2% 1% 2%
Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend Q3-24 Q3-25 Trend
Flood Risk 19.4% 18.0% 51.0% 53.2% 47.9% 44.8%
100-year Flood Zones
1
18.4% 17.2% 30.9% 32.4% 34.5% 32.1%
Sea-level rise (Year 2100, RCP 8.5) 0.0% 0.3% 1.5% 1.5% 8.6% 8.4%
Note: Movements are called out for markets showing a change of more than 5 per cent year-on-year in exposure concentration subject to high Physical Risk.
1 100-year flood zones are defined as land areas subject to a one per cent or greater chance of flooding in any given year. Such areas also may be referenced
asbeing subject to the one per cent annual chance flood, the one per cent annual exceedance probability flood, or the 100-year flood.
Singapore (%) Hong Kong (%)
$
{1}{3}.{6}
bn
82
8
3
2
5
$
{2}{8}.{7}
bn
94
5
4
Taiwan (%) Korea (%)
$
{6}.{4}
bn
63
18
8
5
6
$
{1}{9}.{7}
bn
37
27
14
10
12
Transition Risk ratings using Group mortgage baseliningapproach by exposure concentration
(asofDecember2024)
3
Very Low Low Medium High Very High
2 The previous year’s figures for Singapore residential mortgage Transition Risk have been recalculated. The total exposure for Singapore in the previous year was
$11.4bn, comprising Very Low (80per cent), Low (10 per cent), Medium (3 per cent), High (2 per cent) and Very High (5 per cent).
3 The exposures used for transition risk assessments are based ondata that take into consideration data quality and normalisation adjustments to enhance
consistency and comparability across the portfolio.
2. Transition Risk management approach forWRB
While Energy Performance Certificates (EPC) for properties are available across the UK and EU real estate markets, our key
residential mortgage markets in Asia and AME continue to have no regulatory requirements around minimum building or
unitenergy efficiency. As a result, to measure the potential impacts of Transition Risk on our largest WRB portfolio, residential
mortgages, we rely on proxy assessment approaches for our residential mortgage portfolios in Hong Kong, Korea, Singapore
2
and Taiwan. We continue to leverage our internally derived methodology that quantifies the robustness of our clients’ disposable
income to cope with potential increases in energy spend. Since we started measuring this in 2023, we have observed relatively
low Transition Risk levels in our residential mortgage portfolio. We intend to improve upon this early-stage Transition Risk
assessment approach with more mature and accurate data points as they become available.
Standard Chartered | Annual Report 2025294
For our Jersey residential mortgage portfolio, which largely
comprises buy-to-let properties located in the UK, we
continue tomonitor concentration across EPC ratings.
A
B
C
D
E
0.3%
75%
10%
11%
4%
$
{0}.{3}
bn
EPC ratings for residential mortgages in Jersey,
bycount(as of August 2024) (%)
A B C
Prior to 2000 2000-2021 2022 onwards
D E A B C D E A B C D E
1
6
7
1
0
8
15
58
1
2
0 0 0 0 0
Transition Risk ratings for residential mortgages
inJersey using EPC ratings by exposure concentration
(asofAugust2025)
Assessing ESGR Risks for WRB
For WRB clients, beyond the consideration of climate-related
credit impacts, the Group identifies and manages ESGR
Risksthroughout the client onboarding and ongoing review
processes. For SME and selected Private Banking lending
clients, we perform additional due diligence through E&S Risk
Assessments to ensure that our clients are not engaged in
certain prohibited activities as defined by the Group’s Position
Statements. For clients and/or prospective clients that may
potentially expose the Group to heightened stakeholder
perception risk, we conduct Reputational Risk Materiality
Assessments and determine whether further escalation
totheWRB Client Committee and/or GRRRC is necessary,
toseek approval for onboarding or retention.
In 2025, we enhanced the ESGR risk identification and
management processes for Private Banking clients to ensure
that our risk management approach remains robust amid
theGroup’s growth strategy focusing on affluent and
high-net-worth banking. In 2026 and beyond, we aim to
extend enhanced ESGR risk identification and management
approaches to other WRB segments, taking a risk-based
approach to focus on sub-segments exhibiting higher risks.
For wealth solutions and products offered to WRB clients,
arobust governance framework ensures ESGR and
greenwashing risks are identified and managed. More
information can be found in the Sustainable Finance
Frameworks and the ESRM Framework.
Country Risk
The Group uses a set of Physical and Transition Risk rankings
to identify the markets that are most vulnerable and least
ready to adapt and mitigate climate-related Physical and
Transition Risks.
Based on the aggregated Physical and Transition Risk
scores,sovereigns are split into decile-based buckets ranging
from1(low risk) to 10 (high risk). These rankings are used
asqualitative and quantitative inputs to our internal Country
Risk management process spanning annual sovereign credit
grades and limits reviews, inputs to climate-related scenario
analysis and RA.
In 2025, we started to progressively introduce CRQs for a
portion of our Small and Medium Enterprise (SME) clients
thatare involved in manufacturing operations and/or
operate in sectors which we identify as being exposed
tohigher Transition Risks.
We anticipate that this will help us understand the extent
ofour SME clients’ exposure to both Physical and Transition
Risks, their risk management actions and transition plans,
andhow we can progressively help them to cope with
theimpacts of transitioning towards a low-carbon global
economy. Looking ahead to 2026, we aim to roll this out
tomore key markets and implement additional automated
features to improve efficiency in the assessment process.
Annual Report 2025 | Standard Chartered 295
Risk review and Capital review
ESGR Risk
Gross Country Risk (GCR) exposure distribution across the Physical Risk categories (as at 30 September 2025)
Bucket
(Low)
1 2 3 4 5 6 7 8 9
(High)
10
Exposures % 2.16% 19.21% 35.90% 11.55% 19.55% 2.20% 1.53% 6.07% 0.48% 1.36%
GCR exposure distribution across the Transition Risk categories (as at 30 September 2025)
Bucket
(Low)
1 2 3 4 5 6 7 8 9
(High)
10
Exposures % 1.84% 4.39% 22.03% 25.84% 13.59% 7.35% 21.37% 3.03% 0.56% 0.00%
Insights
• For both Physical and Transition Risk, our exposure to high-risk countries (buckets 9 and 10) remains well below RA thresholds.
• The rankings are largely driven by the level of financial risk that countries are exposed to and their ability to absorb these
losses. As such, the rankings are largely dependent on countries’ development stage, economy-wide diversification, in-country
inequalities and gross exposure to Transition and Physical Risk shocks.
• Additionally, we keep close track of Transition Risk events, such as the establishment of the EU’s and UK’s Carbon
BorderAdjustment Mechanism (CBAM) and its potential impact on our key portfolios. Other markets with carbon pricing
mechanisms (such as Singapore, South Korea and South Africa) are also being monitored as part of Country Risk annual
reviews. From a Physical Risk standpoint, the Group continues to monitor extreme weather events in key footprint markets
aspart of our annual Country Risk reviews.
Limitations
• The computation inputs are based on the latest available data which may be dated. Proxies have been used where data for
thesovereign is not available.
• The ranking uses equally spaced decile scores and provides the results in an ordinal manner. While the simplicity helps
inadoption and provides the relative position of the sovereigns, other systems may provide more information.
Operational, Technology and Cyber Risk
Climate Risk primarily manifests as an Operational, Technology and Cyber Risk when Physical Risk disrupts our properties,
datacentres and vendor arrangements.
We evaluate the Physical Risk vulnerabilities of all our sites, both existing and new, on a periodic basis. Across 2025, we focused
on sites hosting Important Business Services, especially those vulnerable to extreme Physical Risks, to strengthen resilience.
Asextreme weather events increase in frequency and severity, we are committed to enhancing our response and recovery
strategies through comprehensive response plans.
We have initiated an evaluation of Physical Risk vulnerabilities at our primary suppliers’ delivery sites to proactively address
potential business disruptions. Across 2026, we aim to develop comprehensive solutions to ensure robust and resilient
operations.
Our Transition Risk approach remains in line with our achieved target of Net Zero in our own operations by end-2025 and
weintendto maintain this going forward via Power Purchase Agreements and Energy Attribute Certificates in key markets
suchasSingapore and Taiwan.
As part of the operational risk scenario analysis process, we continue to assess the impact across key countries exposed
toextreme flood risk and/or extreme heat stress based on the Representative Concentration Pathway (RCP) 8.5 scenario.
Wealsocontinue assessing suppliers that are identified as presenting higher risks of Modern Slavery using a risk-based
approach. The Group continued to conduct on-site Modern Slavery-related audits for select suppliers, with the number
ofauditsincreasing in 2025.
Insights
• From an acute risk perspective, 14 per cent of the Group’s locations globally are subject to extreme flood risk, 15 per cent with
extreme storm risk and none with extreme risk from wildfire. Given our footprint, a higher proportion of the Group’s locations
in GCNA (18 per cent for flood; 28 per cent for storm) and ASA (15 per cent for flood; 8 per cent for storm) are subject to
extreme acute risks, and 6 per cent of locations in E&A to flood risks.
• In the locations where weather events such as storms or cyclones are frequent, the buildings are built in consideration
ofthese risks to local building standards.
• From a chronic risk perspective, under RCP 8.5, our operating locations’ (globally) exposure to heat stress is at 26 per cent
(41per cent for AME; 55 per cent for ASA). Exposure to sea-level rise remains below 5 per cent.
• A broad range of mitigation options are considered, such as property insurance and operating a diversified location strategy
to reduce concentration risk.
Standard Chartered | Annual Report 2025296
Assessment of gross Physical Risk at our own operating locations (as of September 2025)
Physical Risk event Time horizon Scenario Asia – GCNA Asia – ASA AME E&A Global
Flood (Acute)
2025 N/A
18% 15% 6% 6% 14%
Wildfire (Acute) 0% 0% 0% 0% 0%
Storm (Acute) 28% 8% 1% 6% 15%
Sea-level rise (Chronic) 2100 RCP 8.5 1% 1% 4% 0% 2%
Heat Stress (Chronic) 2050 RCP 8.5 0% 55% 41% 3% 26%
Number of operating locations 398 287 195 32 912
Traded Risk
We manage the Climate Risk of Traded Risk exposures
through the stress-testing framework. Climate Risks are
incorporated in the scenarios monitored against the Traded
Risk stress RA, covering all fair value exposures in the trading
and banking books.
Climate-related stress scenarios are designed to include
Transition Risk effects from climate change policies and
shocks to markets due to supply and demand disruption from
physical climate events. Three scenarios are currently in place:
two physical and one transitional. The assumptions and
results are subject to internal governance. In 2024, a new
transition scenario, where the US unexpectedly participates
inthe CBAM, was approved and we aim to replace the
current transition scenario in 2026. We continue to address
gaps related to market risk factors and shorter-term shocks.
Our Climate Risk management for Traded Risk exposures is
evolving and we are working closely with industry bodies and
academics to better assess and monitor climate-related risks
and opportunities.
Treasury Risk
From a capital perspective, Climate Risk considerations are
part of our Internal Capital Adequacy Assessment Process
(ICAAP) submissions. Our approach for assessing Climate
Riskimpact on capital adequacy has improved from
qualitative judgements to quantitative simulations across
arange of scenarios with the availability of tools and greater
understanding of our portfolio. We consider Climate Risk
inour ICAAP across Credit Risk, OTCR and Traded Risk.
From a liquidity risk perspective, we continue to monitor
Climate Risk-related vulnerabilities and readiness of our top
corporate liquidity providers, leveraging the client outreach
and data-gathering exercise undertaken on the asset side.
The most recent exposure concentration in the Red Climate
Risk rating is broadly comparable with what we see for our
top corporate client exposures on the asset side. The results
of the analysis have been considered as part of our Internal
Liquidity Adequacy Assessment Process.
We periodically monitor the concentration of our High-
Quality Liquid Assets (HQLA) in countries with high Climate
Risk from both transition and physical risk perspectives.
Countries classified in Buckets 1 to 5 are deemed low risk,
while those in Buckets 9 to 10 are considered high risk. Less
than 2 per cent of HQLA are held in a high Climate Risk
country as at September 2025.
Model Risk
Since 2022 we have been building our internal Climate Risk
modelling capabilities to assess impacts from Climate Risk
togradually reduce our reliance on vendor models. We have
developed six sector-specific Transition Risk Probability
ofDefault (PD) models for Corporates, including Oil andGas,
Mining, Steel, Power, Shipping and Automotive. In2025,we
enhanced the granularity for the Power model byconsidering
different energy types to better capture sub-sector risk drivers
and expanded the Climate Risk model scope to assess
Transition Risk for Specialised Lending (including Project
Finance and Shipping Finance) scorecards. Wealso developed
Physical Risk Loss Given Default (LGD) models for Retail
Mortgages to improve Physical Risk assessments in IFRS 9 ECL
and for Climate Risk stress testing purposes. The Sovereign
climate PD model has been further enhanced to align with
the redeveloped underlying IFRS9 model.The development
of internal Climate Risk models has reduced our reliance on
external vendor models, and we plan to continue enhancing
our internal capabilities by extending model coverage
(e.g.todevelop models to cover more portfolios, or to develop
more granular sector-specific models) and incorporating
model enhancements recommended by internal and
externalstakeholders.
All the Climate Risk models are independently validated by
the second line of defence and approved by the Credit Model
Assessment Committee. The models were used to estimate
climate impact on ECL for IFRS 9 and for stress testing
purposes. The Climate Risk models are governed by the
Group Model Risk Policy, Group Model Risk Standard and
Climate Risk Model Family Standard, which have been
enhanced to align with the more stringent model governance
as outlined by the Prudential Regulation Authority (PRA)
supervisory statement (SS) 1/23.
Key priorities for 2026 include our aim to expand model
coverage to capture Physical Risk LGD for Corporates and
toincorporate client transition plans into existing Transition
Risk PD models.
Annual Report 2025 | Standard Chartered 297
Risk review and Capital review
ESGR Risk
Assessing the resilience of our strategy using
scenario analysis
We use scenario analysis to assess climate-related risks
andopportunities in the short, medium and long term and
toevaluate how risks and opportunities may evolve under
different situations. Our approach considers the Group’s
global nature of operations combined with the emerging
markets footprint and covers both the CIB business, with a
focus oncorporates, and the WRB business, with a focus on
residentialmortgages.
Our Climate Risk stress testing and scenario analysis
capabilities are supported by a dedicated team with
expertise in scenario planning, climate and financial data
analytics, and regulatory compliance. The team, spread
across geographies, is responsible for conducting scenario
analysis for both the Group and country-specific exercises.
Continuous training, participation in climate forums, vendor
engagement and partnerships with key organisations
helpusbenchmark our capabilities, build further on our
capabilities and make informed strategic decisions for
effective risk mitigation.
In 2025, we have continued to further strengthen our
scenarioanalysis capabilities, by adopting phase 4 of the
Network for Greening the Financial System (NGFS) scenarios,
expanding the coverage of internal models, progressing
inthe implementation of climate models within the strategic
stress testing platforms, and developing our infrastructure
further to incorporate Climate Risk into data, modelling and
analysis. The scenario analysis is executed as part of our
annual Climate Risk Management Stress Test (MST) exercise,
based on our exposures as of December 2024.
The results from scenario analysis serve multiple use cases,
including as one of the inputs to CIB clients’ Climate Risk
grading (BRAG) assessment, which is integrated into the
existing credit approval process. This integration is key to
informing the overall Climate Risk management process.
Quarterly refresh of the scenario analysis for CIB monitors
expected stressed losses from Climate Risks against predefined
thresholds over a five-year horizon. High-risk clients identified
through scenario analysis are disseminated for further
consideration and discussion in key forums. The results are
used for assessment of Pillar 2A capital add-on as part of
ICAAP for CIB and WRB segments, and for assessing credit
impairment due to Climate Risk with a focus on CIB sectors
with interim 2030 targets, as part of corporate planning.
In addition to executing the annual internal Climate Risk MST
and scenario analysis, we have also participated in several
regulatory Climate Risk stress tests in 2025, including those
conducted by the Monetary Authority of Singapore, Bank
ofMauritius, Bank Negara Malaysia, Otoritas Jasa Keuangan
(OJK) and Central Bank of the UAE.
The Scenario Analysis Process
Executing scenario analysis requires a coordinated effort
across multiple workstreams with data gathered from various
sources – both internal and external. Publicly available climate
scenarios covering a broad range of risks are leveraged and,
where required, these scenarios are expanded further for key
climate and macroeconomic variables using vendor models.
These scenario variables are used by the Climate Risk models
to assess the impact on the credit portfolio, focusing on
potential changes in asset quality, non-performing assets
and loan losses across different business lines and
geographic regions.
In line with growing expectations from stakeholders and
forprudential risk management purposes, the Group has
developed internal models for CIB business, to assess the
changes to counterparties’ credit profiles due to climate
related risks, for high priority sectors. These models, focused
on Transition Risks, apply microeconomic elasticity theory
ofsupply and demand as a core quantitative approach.
Theapproach is an industry standard for climate stress testing
and is based on climate transition costs including the impact
of rising carbon prices, technology investment costs and
changes in carbon intensities (covering Scope 1, 2 and 3
emissions). The client financials used in these models are
based on internal data, but the emissions profile is sourced
from vendors and external sources. Key attributes related
totransition plans and Physical Risk scores sourced from
CRAsand Physical and Transition Risk rankings defined
aspart of Country Risk are used as inputs to the scenario
analysis process.
For Physical Risk assessment of properties in the WRB
business, we rely on Munich Re’s Risk Suite to understand the
exposure of properties to different hazards. This is combined
with internal data capturing property details that help to
estimate mitigant capabilities of the properties to Physical
Risks. We also gather data from internal sources on current
insurance practices in our key markets to improve our
estimation of stress losses.
These results are subject to internal governance, including
review and challenge by an expert panel, and are also tabled
at the Group Risk Committee and the Board Risk Committee.
The results are also shared with the first and the second line
of defence for portfolio monitoring and to guide risk
management strategies.
Standard Chartered | Annual Report 2025298
Scenarios used by the Group
The table below summarises the Climate Risk scenarios used internally by the Group across risk types for scenario analysis and
ICAAP assessments. These scenarios have been selected as they cover a broad range of Physical and Transition Risks covering
different plausible futures. The scenarios are not forecasts but rather serve as tools to explore risks and understand impacts
inarange of climate future states oftheworld.
Risk types Scenario family
Number of
scenarios Risk measure Refer page no
Credit Risk – CIB NGFS Phase 4 4 Stressed ECL 300
Credit Risk – WRB
Intergovernmental Panel on Climate
Change’s (IPCC) RCP
1
scenario 1 Stranded Assets Loss Estimate 301
OTCR IPCC RCP scenario 1 Physical Risk concentration 296
Traded Risk
Bespoke (two Physical scenarios
andone Transition scenario) 3 Stressed Loss 297
Key Scenario Features
The table below details key features of different scenarios used. While certain scenarios focus on Transition (T) risks, others focus
on Physical (P) risk. Current Policies and Fragmented World scenarios are hybrid scenarios with a focus on both Transition (T)
and Physical (P) risks.
Scenario family Scenario name Key features
NGFS (Phase4) Net Zero 2050 (T) Global warming limited to 1.5°C through stringent climate policies and innovation.
Global net zero CO
2
emissions around 2050 in alignment with the Paris Agreement.
Delayed Transition (T) Strong policies will be needed to limit warming to below 2°C.
Annual emissions do not decrease until 2030.
Current Policies (P+T) No additional policies beyond those currently implemented, along with slow
technology change.
Global temperature rises close to 3°C by 2100.
Fragmented World (P+T) The Fragmented World scenario assumes delayed and divergent climate policy
ambition globally, leading to high Physical and Transition Risks.
IPCC (2050,2100) RCP 2.6 (P)
RCP 4.5 (P)
RCP 8.5 (P)
Pathways of Greenhouse Gas (GHG) emissions and atmospheric concentrations,
air pollutant emissions and land use to project their consequences for the climate
system.
Current and projected hazard scores across a range of hazards such as tropical
cyclones, river flood, sea level rise, heat stress, precipitation stress, wildfire and
drought stress from Munich Re’s Risk Suite are used.
Scenarios used for CIB Corporates
The scenarios used for CIB clients, as listed below, are characterised by different levels of Transition and Physical Risk,
drivenbyvarious features in each scenario.
Key Scenario Variables
Net Zero
2050
Delayed
Transition
Current
Policies
Fragmented
World
Temperature rise 2100 1.4°C 1.7°C 2.9°C 2.3°C
Carbon price
($2010/tCO
2
)
2030 187 9 9 9
2050 590 350 8 132
Oil price
($2010/GJ)
2030 13 14 14 14
2050 15 17 19 19
Gas price change
(vs 2020, %)
2030 39 17 17 17
2050 11 6 45 42
GDP baseline change
(vs 2020, %)
2030 34 37 37 37
2050 108 110 117 114
GDP change with high chronic Physical Risk damage
(vs2020, %)
2030 31 34 34 34
2050 96 95 101 95
Scenarios Assumptions
The NGFS scenarios highlight a fundamental trade-off between managing Transition Risk and mitigating Physical Risk.
Thescenarios themselves depict policy implementation, with the (shadow) carbon prices in different scenarios reflective of the
stringency of policies and regulations and how technology costs might evolve. The Net Zero 2050 scenario is an orderly scenario
with coordinated and ambitious climate policies introduced early on, with a secular increase in carbon prices. The Delayed
Transition scenario shows a delayed policy response with disproportionately higher transition costs. Carbon prices in disorderly
scenarios (Delayed Transition), which become dominant from 2030, are typically higher for a given temperature outcome,
compared to orderly transition scenarios. The Fragmented World scenario is reflective of delayed and uncoordinated policy
action with both higher transition costs and Physical Risks. The Current Policies scenario assumes a Hot House world with
insufficient global efforts, reflecting lower carbon prices, to halt significant global warming.
1 RCPs are scenarios that describe future concentrations of GHGs and aerosols in the atmosphere.
Annual Report 2025 | Standard Chartered 299
Risk review and Capital review
ESGR Risk
1 Fossil fuels include Coal, Oil and Gas. Others include Hydro, Nuclear and Geothermal.
The scenarios recognise that policy responses will be
unevenly distributed, with significant regional variation.
Moreover, prices are generally lower in emerging economies
due to lower policy stringency and a greater availability
oflow-cost abatement options. The Net Zero 2050 scenario
largely shows coordinated global policy action with moderate
regional variation. In contrast, the Delayed Transition and
Fragmented World scenarios exhibit greater regional disparity.
In the Delayed Transition scenario, by 2050, carbon prices
reach more than $500 per ton of CO
2
forEU and US, but are
lower than $300 per ton of CO
2
for Asia and Africa; whereas
in the Fragmented World scenario, carbon prices reach more
than $300 per ton of CO
2
in the EUand US but are lower than
$100 per ton of CO
2
in Asia andpractically non-existent
inAfrica. This is directly relevant to the Group given our
footprint across these regions.
The NGFS scenarios include a wide range of macroeconomic
variables, capturing structural relationships between key
aggregates such as the GDP growth, unemployment and
inflation that differ across regions. The macroeconomic
implications vary dramatically across these pathways; while
strong early action requires significant upfront investment
and shifts in sectoral activity, the economic gains (likely to
materialise beyond 2050) from avoided climate damages
ultimately make it the least costly path. Across scenarios,
GDPbaseline is projected to rise in the range of 108 per cent
to 117per cent by 2050 compared to 2020, when chronic
Physical Risk damages are not considered. However, when
such damages are factored in, the GDP rise is significantly
impacted and projected to increase in the range of 95 per cent
to 101 per cent.
In addition to the publicly available macroeconomic variables
for the NGFS scenarios, a more thorough impact on the
macroeconomy is captured through the expansion of
macroeconomic variables, which are provided by an external
vendor. The model combines emissions, abatement, and
climate damages with an economic module to represent the
implications of the latest climate science and climate policy
on economic activity and produces the macroeconomic
variables at the industry and regional level, among others.
The scenarios also provide nuanced insights into energy
systems and incorporate the latest trends in renewable
energy technologies such as solar and wind, as well as key
mitigation technologies. For instance, the capital costs for
solar photovoltaic energy are projected to decrease rapidly,
resulting in higher adoption of these technologies. This is
reflected in the Net Zero 2050 scenario variables where the
use of solar and wind energy, which was 4EJ/year and 6EJ/
year in 2020, is projected to reach 170EJ/year and 94EJ/year
by 2050, respectively. Orderly scenarios assume a rapid and
significant shift in the energy mix away from fossil fuels
toward renewables, biomass and increased electrification,
coupled with substantial improvements in energy efficiency.
This reduced demand of fossil fuels,
1
as captured in the chart
below, is projected to decline by 85 per cent by 2050 in the
Net Zero 2050 scenario. Additionally, based on recent
industry experience, the scenarios also account for the limited
availability of Carbon Dioxide Removal and Carbon Capture
and Storage technologies. Ultimately, the scenarios serve
asatool for exploring these complex interdependencies
rather than as a predictive forecast.
2020
Reference
Current
Policies
Fragmented
World
Delayed
Transition
Net Zero
2050
83
2
10
5
68
21
7
4
52
31
11
6
29
48
16
7
15
55
21
9
Fossil Solar & Wind Biomass Others
Scenario Assumptions
Energy Mix by 2050, acrossscenarios (%)
Scenario analysis results for CIB
In 2025, we assessed the impact of climate-related risks on
our corporate, sovereign and financial institution clients,
covering 98 per cent of CIB exposures as at December 2024.
This assessment, across the four NGFS scenarios, is primarily
reflective of the gross Transition Risks, and limited impact from
Physical Risks. While client-level transition plans were not
factored into the modelling, they were referenced to draw
additional insights for climate sensitive sectors. Wehave
usedenhanced Transition Risk models, which are internally
developed and better capture the climate scenario narratives
when compared to the first-generation models used in 2024.
The cumulative Loan Impairment (LI) intensity measures the
level of incremental ECL against the Exposure At Default (EAD).
We expect this metric to enable us to assess the relative size
of our exposure subject to potential losses from Climate
Risks.As the graph below illustrates, cumulative LI intensities
donotgo beyond 3 per cent during the forecast horizon
fortheclimate scenarios considered in our scenario analysis.
Weexpect the cumulative LI intensity to rise the most in the
Net Zero 2050 and Delayed Transition scenarios, followed by
Fragmented World scenario, primarily driven by corporates.
The high LI intensity in the Net Zero 2050 scenario is reflective
of the high Transition Risks noted by higher carbon prices,
coupled with the need for greater investment to move to
alow-carbon economy. The high LI intensity in the Delayed
Transition scenario illustrates that delayed transition will
beequally disruptive due to a lower level of innovation that
limits the ability to decarbonise effectively, and rising carbon
prices that squeeze profit margins.
Standard Chartered | Annual Report 2025300
Cumulative LI Intensity is calculated as gross ECL over EAD
For corporate clients, we focused on the sectors in the table below that have been identified as more vulnerable to potential
climate impacts. Sectors such as Oil and Gas, Utilities, and Automobiles and Components are most impacted, primarily due
tothe rise in carbon prices in the scenarios and to some extent by the consequent macroeconomic changes. It is assumed that
clients with credible transition plans in climate sensitive sectors are less affected as they are better able to identify opportunities
arising from climate change. The change in LI intensities compared with previous disclosures is largely due to heightened
severity of NGFS Phase 4 scenarios and the enhancement in internal models.
Cumulative LI intensities for key corporate sectors
Long Term – 2050 EAD Y0 (%) Net Zero 2050 Delayed Transition Current Policies Fragmented World
Automobiles & Components 3 High High Medium High
Building Products, Construction & Engineering 5 Medium Medium Medium Medium
Consumer Durables & Apparel 5 Low Low Medium Medium
CRE 8 Low Low Low Medium
Metal & Mining 3 Medium Medium Low Medium
Oil & Gas 8 High High Low High
Telecommunication Services 1 Low Low Low Low
Transportation & Storage 8 Medium Medium Low Medium
Utilities 5 High High High High
Others 54 Low Low Low Low
Total portfolio 100 Medium Medium Low Medium
EAD data is as of December 2024.
Scenario analysis results for WRB
Stranded assets analysis is conducted to evaluate the residential mortgages portfolio, to account for extreme Physical Risk.
Dueto the higher materiality of residential mortgages portfolio, and the greater relevance and impact of Physical Risk on
thisportfolio, it has been selected for scenario analysis. We define stranded assets as 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.
These stranded assets are expected to see a complete erosion to the value of the property.
The stranded assets analysis is both data and expert-judgement driven. The following chart illustrates the stranded
assetlossesfor 2050 across key residential mortgage markets under the RCP8.5 scenario, based on Munich Re’s Risk Suite.
Weexamined exposure concentration 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. This analysis also considered additional details, such as
ageand type of the property and inbuilt flood defence mechanism for the acute risk and distance to coast for the chronic risk,
subject to data availability.
Cumulative LI Intensity Trajectory for CIB – Corporates
3%
2%
1%
0.0%
Current Policies Delayed Transition Fragmented World Net Zero 2050
2024 2025 2030 2035 2040 2045 2050
0.8%
to
2.2%
The moderately high LIintensity observed for the Fragmented World scenario isdriven by sharp regional divergence, with
cumulative LIintensity in 2050 observed to be the highest for AME, followed by Asia and E&A. These results are driven by
differences in the capacity to execute transition plans, exposure to Physical Risks, combined with uncoordinated carbon policies
across regions. Relatively lower LI intensity observed in the NGFS Current Policies scenario reflects the nascent modelling capabilities
to incorporate second-order impacts on supply chain and for assessing the Physical Risk impact to client asset locations.
Annual Report 2025 | Standard Chartered 301
Risk review and Capital review
Markets such as Hong Kong, Korea, India, Malaysia and
China exhibit a higher level of potential losses as more
properties in these markets will be exposed to flood and
storm risks while properties in UAE exhibit a higher level of
sea-level rise risk by the year 2050. We have considered
insurance benefits in markets such as Hong Kong, China, UAE
and Korea, where there is mandatory coverage against flood
and storm risks. However, given the potential issues around
affordability and availability of insurance in the longer term,
these benefits are considered only in the short term until 2030
with an appropriate level of haircut. For markets where data
limitations exist, we were not able to consider the application
of mitigating factors against stranded assets, such as
property age and property type, in our analysis this year. We
aim to address these limitations in future iterations where
feasible. We have established zoning policies to ringfence
against properties subject to high Physical Risk in Korea
where the homeowners’ insurance coverage does not fully
mitigate residual Physical Risk. These measures will help to
ensure that the Group remains resilient to the adverse climate
conditions. Additionally, it is also worth noting that the
analysis does not consider the level of adaptation measures
enforced by government policies.
Our peak ECL intensities for 2050 across the range of climate
scenarios, after incorporating stranded asset overlay, are
minimal relative to the counterfactual base scenario without
climate impacts. We plan to continue to refine our approach
to ensure its effectiveness. Overall, the results indicate that
the risks are manageable as we continue to actively manage
the portfolio to mitigate Physical Risk build-up.
Group’s resilience demonstrated
While further enhancements to our modelling and risk
assessment capabilities are ongoing, the results of scenario
analysis for both CIB and WRB have provided further
validation to the actions the Group is taking in terms of our
Net Zero ambitions and strategy. Additionally, it aligns with
our management initiatives aimed at improving the data
quality and building in-house modelling expertise. Overall,
webelieve that the level of potential credit losses can be
mitigated by continuing to take actions across sectors as part
of our Net Zero roadmap, engaging with our clients on this
topic and supporting clients on their transition journey.
Recent events in countries like India, Pakistan and the South
China Sea region have highlighted the increasing frequency,
intensity and unexpected nature of natural disasters. In India,
extreme rainfall in states like Punjab and Himachal Pradesh
caused widespread flooding and significant damage to
infrastructure and agriculture. Uttarakhand also experienced
landslides, cloud bursts and flash floods. In Pakistan, intense
monsoon rainfall in Punjab and Khyber Pakhtunkhwa resulted
in severe urban flooding, affecting vulnerable communities.
Typhoon Ragasa severely affected areas of Philippines and
Taiwan, and impacted South China, Hong Kong and Macau.
These events underscore the vulnerabilities due to climate
change. Despite recent challenges, the Group has exhibited
significant resilience, attributable to its robust balance sheet
and risk management practices.
Limitations and next steps
Reliance on emerging methodologies, dependencies
onnascent models undergoing continuous refinements,
andvarying data limitations across markets, such as the
availability of uniform and consistent data points for Physical
Risk assessment, further impacting expected loss calculation,
are some challenges that underpin the scenario analysis.
Many of these limitations are shared across the industry.
Given the complexities of climate modelling, it should also be
noted that the results do not include the real-world aspects,
such as the non-linear shifts and complex feedback loops.
Asmore climate science literature and solution providers
become available and banks start to use them extensively
tobuild internal understanding and capabilities, the
transparency and sophistication of modelling methodologies
and assumptions will increase. The continuous refinements
inmodels and methodologies is expected to be an
ongoingprocess.
Nonetheless, the current results provide a strategic direction
of the sense of portfolio concentrations subject to potential
climate losses. These results are used to inform portfolio
oversight and opportunity identification with clients on their
transition and adaptation pathways.
Additionally, considerable developments have been made
inbuilding capability from a people, process and technology
perspective to support stress tests and scenario analysis at
both Group and country level. As we look ahead, we plan
toexpand the scope of internal models used for scenario
analysis, leverage the enhanced internal climate adjusted
sovereign models, and use the newly built climate aware
LGDstress models among others. We also plan to conclude
integrating internal Climate Risk models within the
Group’sinfrastructure.
The size of the bubble is indicative of the stranded asset losses assessed
forresidential mortgages portfolio.
‘Others’ includes Vietnam, Jersey, Bangladesh, Brunei, Kenya, Pakistan
andSriLanka.
Chronic Risk (Sea Level Rise)
Acute Risks (Flood and Storm)
Low Medium High
Low Medium High
Korea
India
Singapore
China
Taiwan
UAE
Malaysia
Others
Hong Kong
Expected Losses due to Stranded Assets for Residential
Mortgages by 2050
ESGR Risk
Standard Chartered | Annual Report 2025302
Capital review
Capital summary
The Group’s capital, leverage and minimum requirements
forown funds and eligible liabilities (MREL) position
ismanaged within the Board-approved risk appetite.
TheGroup is wellcapitalised with low leverage and high
levels of loss-absorbing capacity.
Capital ratios
2025 2024
CET1 capital 14.1% 14.2%
Tier 1 capital 17.0% 16.9%
Total capital 20.6% 21.5%
Leverage ratio 4.7% 4.8%
MREL ratio 33.5% 34.2%
Risk-weighted assets (RWA) $million 258,031 247,065
The Group‘s capital, leverage and MREL positions were
allabove current requirements and Board-approved risk
appetite. For further detail see the Capital section in the
Standard Chartered PLC Pillar 3 Disclosures for FY 2025.
TheGroup’s CET1 capital was 12 basis points lower than
2024.Profits, movements in other comprehensive income and
FXtranslation reserves were offset by RWA growth, increase
inregulatory deductions and distributions (including ordinary
share buybacks of $2.8 billion during the year).
The PRA updated the Group’s Pillar 2A requirement during
Q32025. As at 31 December 2025, the Group’s Pillar 2A was
3.3 per cent of RWA, of which at least 1.9 per cent must be
held in CET1 capital. The Group’s minimum CET1 capital
requirement was 10.3 per cent at 31 December 2025.
The Capital review provides an analysis of the Group’s capital
andleverage position, and requirements.
The Group CET1 capital ratio as at 31 December 2025 reflects
theshare buyback of $2.8 billion during the year. The CET1
capital ratio also includes an accrual for the FY 2025 dividend.
The Board has recommended a final dividend for FY 2025
of$1,092 million or 49 cents per share resulting in afull year
2025 dividend of 61 cents per share, a 65 per cent increase
onthe 2024 dividend per share. In addition, the Board has
announced a further share buyback of $1.5 billion, the impact
of which will reduce the Group’s CET1 capital by around 58
basis points in the first quarter of 2026.
The Group expects to manage CET1 capital dynamically
within our 13-14 per cent target range, in support of our aim
ofdelivering future sustainable shareholder distributions.
The Group’s MREL leverage requirement as at 31 December
2025 was 28.4 per cent of RWA. This is composed of a
minimum requirement of 24.5 per cent of RWA and the
Group’s combined buffer (comprising the capital
conservation buffer, the G-SII buffer and the countercyclical
buffer). The Group’s MREL ratio was 33.5 per cent of RWA
and 9.2 per cent of leverage exposure at 31 December 2025.
During 2025, the Group successfully raised $9.9 billion of
MRELeligible securities from its holding company, Standard
Chartered PLC. Issuance includes $2.0 billion of Additional
Tier1 and $7.9 billion of callable senior debt.
The Group raised an additional $0.6 billion of Additional Tier 1
and $3.7 billion in senior securities post the balance sheet
date, i.e. not included in the FY 2025 MREL position.
The Group is a G-SII, with a 1.0 per cent G-SII CET1
capitalbuffer.
The Standard Chartered PLC G-SII disclosure ispublished at
sc.com/financial-results
Annual Report 2025 | Standard Chartered 303
Risk review and Capital review
Capital review
Capital base
1
(audited)
2025
$million
2024
$million
CET1 capital instruments and reserves
Capital instruments and the related share premium accounts 5,120 5,201
Of which: share premium accounts 3,989 3,989
Retained earnings 24,528 24,950
Accumulated other comprehensive income (and other reserves) 10,406 8,724
Non-controlling interests (amount allowed in consolidated CET1) 262 235
Independently audited year-end profits 5,100 4,072
Foreseeable dividends (1,377) (923)
CET1 capital before regulatory adjustments 44,039 42,259
CET1 regulatory adjustments
Additional value adjustments (prudential valuation adjustments) (693) (624)
Intangible assets (net of related tax liability) (6,145) (5,696)
Deferred tax assets that rely on future profitability (excludes those arising from temporary differences) (15) (31)
Fair value reserves related to net losses on cash flow hedges (315) (4)
Deduction of amounts resulting from the calculation of excess expected loss (599) (702)
Net gains on liabilities at fair value resulting from changes in own credit risk 412 278
Defined-benefit pension fund assets (149) (149)
Fair value gains arising from the institution’s own credit risk related to derivative liabilities (70) (97)
Exposure amounts which could qualify for risk weighting of 1250% (25) (44)
Total regulatory adjustments to CET1 (7,599) (7,069)
CET1 capital 36,440 35,190
Additional Tier 1 capital (AT1) instruments 7,529 6,502
AT1 regulatory adjustments (20) (20)
Tier 1 capital 43,949 41,672
Tier 2 capital instruments 9,308 11,449
Tier 2 regulatory adjustments (30) (30)
Tier 2 capital 9,278 11,419
Total capital 53,227 53,091
Total risk-weighted assets (unaudited) 258,031 247,065
1 Capital base is prepared on the regulatory scope of consolidation.
Standard Chartered | Annual Report 2025304
Movement in total capital (audited)
2025
$million
2024
$million
CET1 at 1 January 35,190 34,314
Ordinary shares issued in the period and share premium – –
Share buyback (2,800) (2,500)
Profit for the period 5,100 4,072
Foreseeable dividends deducted from CET1 (1,377) (923)
Difference between dividends paid and foreseeable dividends (557) (469)
Movement in goodwill and other intangible assets (449) 432
Foreign currency translation differences 931 (525)
Non-controlling interests 26 18
Movement in eligible other comprehensive income 283 636
Deferred tax assets that rely on future profitability 16 10
Decrease/(increase) in excess expected loss 101 52
Additional value adjustments (prudential valuation adjustment) (69) 106
IFRS 9 transitional impact on regulatory reserves including day one – 2
Exposure amounts which could qualify for risk weighting 18 –
Fair value gains arising from the institution’s own Credit Risk related to derivative liabilities 27 19
Others – (54)
CET1 at 31 December 36,440 35,190
AT1 at 1 January 6,482 5,492
Net issuances (redemptions) 1,026 1,015
Foreign currency translation difference and others 1 (25)
AT1 at 31 December 7,509 6,482
Tier 2 capital at 1 January 11,419 11,935
Regulatory amortisation (227) 1,189
Net issuances (redemptions) (2,175) (1,517)
Foreign currency translation and fair value differences 251 (191)
Tier 2 ineligible minority interest 10 (3)
Others – 6
Tier 2 capital at 31 December 9,278 11,419
Total capital at 31 December 53,227 53,091
The main movements in capital in the period were:
• CET1 capital increased by $1.2 billion as retained profits of $5.1 billion, movement in other comprehensive income of $0.5 billion
and foreign currency translation impact of $0.9 billion were partly offset by share buyback of $2.8 billion, distributions paid
and foreseeable of $1.9 billion, and an increase in regulatory deductions and other movements of $0.5 billion.
• AT1 capital increased by $1.0 billion following the issuance of $1.0 billion of 7.63 per cent securities and $1.0 billion of 7.00 per
cent securities partly offset by the redemption of $1.0 billion of 6.00 per cent securities.
• Tier 2 capital decreased by $2.1 billion due to the redemption of $2.2 billion of Tier 2 during the year partly offset by the reversal
of regulatory amortisation and foreign currency translation impact.
Annual Report 2025 | Standard Chartered 305
Risk review and Capital review
Capital review
Risk-weighted assets by business
2025
Credit risk
$million
Operational risk
$million
Market risk
$million
Total risk
$million
Corporate & Investment Banking 125,366 23,842 26,713 175,921
Wealth & Retail Banking 45,075 11,707 – 56,782
Ventures 4,352 475 76 4,903
Central & other items 17,352 (801) 3,874 20,425
Total risk-weighted assets 192,145 35,223 30,663 258,031
2024
1
Credit risk
$million
Operational risk
$million
Market risk
$million
Total risk
$million
Corporate & Investment Banking 124,635 19,987 24,781 169,403
Wealth & Retail Banking 47,764 9,523 – 57,287
Ventures 2,243 142 21 2,406
Central & other items 14,661 (173) 3,481 17,969
Total risk-weighted assets 189,303 29,479 28,283 247,065
Movement in risk-weighted assets
Credit risk
Corporate &
Investment
Banking
$million
Wealth &
Retail
Banking
$million
Ventures
$million
Central &
other items
$million
Total
$million
Operational
risk
$million
Market risk
$million
Total risk
$million
At 1 January 2024 116,621 50,771 1,885 22,146 191,423 27,861 24,867 244,151
Assets growth & mix 11,616 (491) 358 (5,176) 6,307 – – 6,307
Asset quality (2,472) (316) – (384) (3,172) – – (3,172)
Model updates 1,620 (1) – – 1,619 – (400) 1,219
Methodology and policy changes 38 39 – – 77 – (1,300) (1,223)
Acquisitions and disposals – – – – – – – –
Foreign currency translation (2,788) (1,397) – (691) (4,876) – – (4,876)
Other, Including non-credit
riskmovements – (841) – (1,234) (2,075) 1,618 5,116 4,659
At 31 December 2024
1
124,635 47,764 2,243 14,661 189,303 29,479 28,283 247,065
Assets growth & mix (1,712) (3,361) 2,109 1,919 (1,045) – – (1,045)
Asset quality 1,343 (483) – 567 1,427 – – 1,427
Model updates (1,265) 198 – – (1,067) – 63 (1,004)
Methodology and policy changes – – – – – – – –
Acquisitions and disposals (293) (92) – (19) (404) – – (404)
Foreign currency translation 2,658 1,049 – 224 3,931 – – 3,931
Other, Including non-credit
riskmovements – – – – – 5,744 2,317 8,061
At 31 December 2025 125,366 45,075 4,352 17,352 192,145 35,223 30,663 258,031
1 RWA balances are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2025. Prior periods have been re-presented and there
is no change in total RWA.
Standard Chartered | Annual Report 2025306
Movements in risk-weighted assets
RWA increased by $11.0 billion, or 4.4 per cent, from
31 December 2024 to $258.0 billion. This was due to the
increase in Credit Risk RWA of $2.8 billion, Market Risk RWA
of $2.4 billion and Operational Risk RWA of $5.7 billion.
Corporate & Investment Banking
Credit Risk RWA increased by $0.7 billion, or 0.6 per cent,
from31 December 2024 to $125.4 billion due to:
• $2.7 billion increase from foreign currency translation
• $1.3 billion increase mainly due to deterioration in asset
quality from sovereign downgrades and other client
grademoves
• $1.7 billion decrease from changes in asset growth and mix
– $5.0 billion decrease from optimisation actions
– $3.3 billion increase from asset growth
• $1.3 billion decrease from industry-wide regulatory
changes to align IRB model performance
• $0.3 billion decrease from exit of business in Cameroon.
Wealth & Retail Banking
Credit Risk RWA decreased by $2.7 billion, or 5.6 per cent,
from 31 December 2024 to $45.1 billion mainly due to:
• $3.4 billion decrease from changes in asset growth and mix
• $0.5 billion decrease mainly due to improvement
inassetquality
• $0.1 billion decrease from exit of business in Gambia
• $1.0 billion increase from foreign currency translation
• $0.2 billion increase from industry-wide regulatory changes
to align IRB model performance
Ventures
Ventures is comprised of Mox Bank Limited, Trust Bank
andSC Ventures. Credit Risk RWA increased by $2.1 billion,
or94.0 per cent from 31 December 2024 to $4.4 billion
fromasset balance growth from Mox Bank Limited and
SCVentures.
Central & other items
Central & other items RWA mainly relate to the Treasury
Market’s liquidity portfolio, equity investments and current
and deferred tax assets.
Credit Risk RWA increased by $2.7 billion, or 18.4 per cent,
from 31 December 2024 to $17.4 billion mainly due to:
• $1.9 billion increase from changes in asset growth and mix
• $0.6 billion increase due to deterioration in asset quality
mainly from sovereign downgrades and other client
grademoves
• $0.2 billion increase from foreign currency translation.
Market Risk
Total Market Risk RWA increased by $2.4 billion, or 8.4 per
cent, from 31 December 2024 to $30.7 billion mainly due to a
$2.1 billion increase in Standardised Approach (SA) Specific
Interest Rate Risk RWA due primarily to increases in the Credit
Trading Portfolio.
Operational Risk
Operational Risk RWA increased by $5.7 billion, or 19.5 per
cent, from 31 December 2024 to $35.2 billion, primarily driven
by an increase in average income measured over a rolling
three-year time horizon. The Group has brought forward the
annual refresh of Operational Risk RWA with RWA increase
recognised in Q4’25 rather than Q1’26, as earlier guided,
resulting in two operational risk RWA increases in 2025.
Annual Report 2025 | Standard Chartered 307
Risk review and Capital review
Leverage ratio
The Group’s leverage ratio, which excludes qualifying claims on central banks, was 4.7 per cent at FY 2025, which was above
thecurrent minimum requirement of 3.7 per cent. The leverage ratio was 11 basis points lower than FY 2024. Leverage exposure
increased by $69.8 billion from the increase in Loans and advances and other assets of $85.2 billion, an increase in Derivatives of
$3.7 billion partly offset by decrease in claims on central banks of $16.9 billion, decrease in Off-balance sheet items of $1.3 billion,
and decrease in asset amounts deducted in determining Tier 1 capital (Leverage) of $0.8 billion. Tier 1 capital increased by
$2.3 billion as CET1 capital increased by $1.2 billion and AT1 capital increased by $1.0 billion following the issuance of $2.0 billion
partly offset by the redemption of $1.0 billion AT1 securities.
Leverage ratio
2025
$million
2024
$million
Tier 1 capital (end point) 43,949 41,672
Derivative financial instruments 65,782 81,472
Derivative cash collateral 12,868 11,046
Securities financing transactions (SFTs) 96,096 98,801
Loans and advances and other assets 745,209 658,369
Total on-balance sheet assets 919,955 849,688
Regulatory consolidation adjustments
1
(96,565) (76,197)
Derivatives adjustments
Derivatives netting (51,827) (63,934)
Adjustments to cash collateral (10,011) (10,169)
Net written credit protection 2,604 2,075
Potential future exposure on derivatives 58,062 51,323
Total derivatives adjustments (1,172) (20,705)
Counterparty risk leverage exposure measure for SFTs 6,715 4,198
Off-balance sheet items 117,341 118,607
Regulatory deductions from Tier 1 capital (8,084) (7,247)
Total exposure measure excluding claims on central banks 938,190 868,344
Leverage ratio excluding claims on central banks (%) 4.7% 4.8%
Average leverage exposure measure excluding claims on central banks 949,214 894,296
Average leverage ratio excluding claims on central banks (%) 4.6% 4.7%
Countercyclical leverage ratio buffer 0.1% 0.1%
G-SII additional leverage ratio buffer 0.4% 0.4%
1 Includes adjustment for qualifying central bank claims and unsettled regular way trades.
Capital review
Standard Chartered | Annual Report 2025308
In this section
310 Independent Auditor’s report
322 Consolidated income statement
323 Consolidated statement of comprehensive income
324 Consolidated balance sheet
325 Consolidated statement of changes in equity
326 Cash flow statement
327 Company balance sheet
328 Company statement of changes in equity
329 Notes to the financial statements
Financial
statements
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Annual Report 2025 | Standard Chartered 309
Financial statements
Independent Auditor’s Report to the
members of Standard Chartered PLC
Opinion
In our opinion:
• Standard Chartered PLC’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 PLC (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 41 to the financial statements, including:
material accounting policy information.
Consolidated cash flow statement for the year then ended;
Related notes 1 to 41 to the financial statements, including:
material accounting policy information;
Information marked as ‘audited’ within the Directors’
remuneration report from page 180 to page 206; and
Risk Review and Capital Review disclosures marked as
‘audited’ from page 218 to page 308.
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;
Standard Chartered | Annual Report 2025310
• 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’s and the Parent Company’s
ability to continue as a going concern for a period of twelve
months from 24 February 2026.
In relation to the Group’s and the Parent Company’s reporting
on how they have applied the UK Corporate Governance
Code, we have nothing material to add or draw attention
toin relation to the directors’ statement in the financial
statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
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.
Overview of our audit approach
Audit scope • We performed an audit of the complete financial information of 10 components in 8 countries
andaudit procedures on specific balances for a further 6 components in 5 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
• Basis of accounting and impairment assessment of China Bohai Bank (interest in associate)
• Valuation of financial instruments held at fair value with higher risk characteristics.
Materiality • Overall Group materiality of $390m 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, Hong Kong, Côte d'Ivoire and Saudi Arabia,
we, 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 16 components in 13 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’s 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.
Annual Report 2025 | Standard Chartered 311
Financial statements
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.
Having identified the components for which work will
beperformed, we determined the scope to assign to
eachcomponent.
Of the 16 components selected, we designed and performed
audit procedures on the entire financial information of 10
components (“full scope components”). For 6 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 66% 64% 87% 87% 68% 72%
Specific Scope 10% 10% 5% 5% 10% 9%
Specified Procedures 0% 2% 0% 0.30% 0% 2%
Total 76% 76% 92% 92% 78% 83%
Of the remaining components that together represent 24%
of the Group’s absolute PBT, none are individually greater
than 2.3%. 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. There was one non-EY component team auditing a
single component in a single location, which was instructed
by a direct component of the Group.
Audit procedures were performed on 3 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 13 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 of 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:
• Hong Kong
• India (including the shared services centre)
• Mainland China (including the shared services centre)
• Malaysia (including the shared services centre)
• Republic of Korea
• 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 PLC
Standard Chartered | Annual Report 2025312
Climate change
Stakeholders are increasingly interested in how climate
change will impact the 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 pages
287 to 302 in the ‘Risk Review and Capital Review’ section,
and on pages 66 to 128 in the ‘Sustainability review’ section
aswell as on pages 450 to 465 in the ‘Supplementary
sustainability information’ section of the Annual Report,
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 ‘Sustainability review’ section
of the Annual 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 the Audit Committee Report (page 163);
Note8ofthe financial statements; and relevant credit
riskdisclosures (including pages 233 to 276).
At 31 December 2025, the Group reported a credit
impairment balance sheet provision of $4,408m million
(2024: $5,267 million), and an income statement charge
of$672 million (2024: $547 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 those controls upon which we placed reliance.
We performed an overall stand-back assessment of the
ECLallowance in total and by stage. We considered the
overall level of geopolitical risk and consequent economic
uncertainty, credit quality of the Group’s portfolios, the
impact of sovereign risk, challenges facing the Commercial
Real Estate sector, 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.
Annual Report 2025 | Standard Chartered 313
Financial statements
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.
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.
Independent Auditor’s Report to the members of Standard Chartered PLC
Standard Chartered | Annual Report 2025314
Risk Our response to the risk
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.
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 266 to 270 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 non-linearity 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.
Annual Report 2025 | Standard Chartered 315
Financial statements
Risk Our response to the risk
Basis of accounting and impairment assessment of China
Bohai Bank (Interest in Associate)
Refer to the Audit Committee Report (page 163) and Note 32
of the financial statements.
• Interest in Associate – China Bohai Bank $883 million
(2024: $738 million).
• Cumulative impairment: $1,485 million (2024:
$1,459 million).
At 31 December 2025, the Group’s share of China Bohai
Bank’s market capitalisation was $523m lower than the
carrying value of $883m.
We focused on judgements and estimates, including
theappropriateness of the equity accounting treatment
under IAS 28 and the assessment of whether the investment
was impaired.
Basis of accounting
The Group holds a 16.26% stake in China Bohai Bank and
equity accounts for the investment as an associate, on the
grounds that the Group is able to exercise significant
influence over China Bohai Bank.
IAS 28 states that if the entity holds, directly or indirectly, less
than 20% of the voting power of the investee, it is presumed
that the entity does not have significant influence, unless
such influence can be clearly demonstrated.
There is a risk that the equity accounting treatment may
notbe appropriate, if the Group cannot demonstrate that
itexerts significant influence over China Bohai Bank.
We obtained an understanding of management’s process
and evaluated the design of controls for the accounting and
impairment assessment of China Bohai Bank. Our audit
strategy was fully substantive.
Basis of accounting
We evaluated the evidence that the Group presented
todemonstrate that it exercises significant influence over
ChinaBohai Bank, through Board representation, membership
ofBoard Committees and sharing of technical expertise.
We observed certain meetings alongside Group
management and China Bohai Bank management to
identify facts and circumstances impacting the assessment
of significant influence exercised by the Group.
Impairment testing
We assessed the appropriateness of the Group’s VIU
methodology for compliance with accounting standards.
We tested the mathematical accuracy of the VIU model
andengaged our valuation and modelling specialists to
support the audit team in calculating an independent
rangefor the VIU.
We performed audit procedures to assess the
reasonableness of the Group’s forecast of the future
cashflows relating to Bohai, and other key assumptions
withregard to the relevance and reliability of data inputs.
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’s 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, sovereigns, 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 8 full scope and 5 specific 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 PLC
Standard Chartered | Annual Report 2025316
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 the Audit Committee Report (page 163) and Note 13
to the financial statements.
At 31 December 2025, the Group reported financial assets
measured at fair value of $370,745 million (2024:
$348,408 million), and financial liabilities at fair value of
$157,801 million (2024: $167,526 million), of which financial
assets of $12,338 million (2024: $8,053 million) and financial
liabilities of $5,133 million (2024: $4,937 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.
We evaluated the design and operating effectiveness
ofcontrols relating to the valuation of financial instruments,
including Independent Price Verification (IPV), model
validation, 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;
Risk Our response to the risk
Our assessment of the risk in respect of significant influence
has not changed compared to the prior year.
Impairment testing
At 31 December 2025, China Bohai Bank’s market
capitalisation was significantly lower than the carrying value
of the investment. Financial performance in 2025 reflected
ongoing market pressures, resulting in muted results.
Inaddition, China Bohai Bank did not pay a dividend for
athird year.
These matters are indicators of impairment.
Impairment of the investment in China Bohai Bank
isdetermined by comparing the carrying value to the
higherofvalue in use (VIU) and fair value less costs to sell.
TheVIUis modelled by reference to future cashflow
forecasts (forecast profit, including a haircut for regulatory
capital), exit multiples, discount rate and macroeconomic
assumptions such as forward market interest rate curves.
Theassumptions underpinning management’s assessment
of the VIU are subject to estimation uncertainty and
consequently, there is a risk that if the judgements and
assumptions are inappropriate, the investment in China
Bohai Bank may be misstated.
Our assessment of the risk in respect of impairment has not
changed compared to the prior year.
We performed a stand-back assessment to determine
whether the carrying value of the Group’s investment
inChina Bohai Bank was reasonable. We considered the
macroeconomic environment in China, ratings agency
reports and public disclosures by Bohai. We benchmarked
the forecasts to broker reports published for comparable
companies.
We assessed the appropriateness of disclosures in the
annual report in relation to China Bohai Bank, including the
impact of reasonably possible changes in key assumptions
on the carrying value of the investment.
Key observations communicated to the
AuditCommittee
How we scoped our audit to respond to the risk
andinvolvement with component teams
On the basis of the evidence, we concluded that the Group
continues to maintain significant influence over China Bohai
Bank as at 31 December 2025. We highlighted our
assessment of the impairment methodology and our view
onsignificant assumptions to the VIU.
We concluded that the Interest in Associate – China Bohai
Bank balance and the associated financial statement
disclosures were not materially misstated as at
31 December2025.
We performed centralised audit procedures over the risk,
with the support of EY Hong Kong and a non-EY Component
audit team in performing certain procedures to address the
risk.
The Group Audit Team’s involvement with the component
teams and procedures performed are detailed in the
Involvement with component audit teams’ section
ofourreport.
Annual Report 2025 | Standard Chartered 317
Financial statements
Risk Our response to the risk
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 Credit Valuation Adjustments for
illiquid counterparties.
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 team, covering over 99% of the risk amount.
Independent Auditor’s Report to the members of Standard Chartered PLC
In the prior year, our auditor’s report included a key audit
matter in relation to the impairment of investments in
subsidiaries. Following a re-assessment, in the current year,
we no longer consider it a key audit matter.
Standard Chartered | Annual Report 2025318
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 $390 million
(2024: $340 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
$351 million (2024: $306 million), which represents 90% of
Group materiality (2024:90%) and equates to 0.6%
(2024: 0.6%) of the equity of the Parent company. We believe
that equity provides us with the most appropriate measure
for the users of the Parent Company’s financial statements,
given that the Parent Company is primarily a holding
company.
Starting basis • Reported profit before tax – $6,963m
Adjustments • Non-recurring items: $842m
Materiality • Adjusted profit before tax – $7,805m
• Materiality of $390m (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 $195m
(2024:$170m). 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 $46m (2024: $16m to $46m).
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 $20m
(2024: $17m), 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 478, including the
Strategic report (pages 1 to 52), the Financial Review (pages
53 to 65), the Sustainability Review (pages 66 to 128), the
Directors’ report (pages 129 to 216), including the information
not marked as ‘audited’ in the Directors’ remuneration report
(pages 180 to 206) and Other statutory and regulatory
disclosures (pages 207 to 216), the Statement of directors’
responsibilities (page 217), the information not marked as
‘audited’ in the Risk review and Capital review section (pages
218 to 308), and the Supplementary information (pages 435
to478), 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.
Annual Report 2025 | Standard Chartered 319
Financial statements
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 and the part of
the Directors’ Remuneration Report to be audited 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.
Corporate Governance Statement
We have reviewed the directors’ statement in relation
togoing concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group
andCompany’s compliance with the provisions of the UK
Corporate Governance Code specified for our review by the
UK Listing Rules.
Based on the work undertaken as part of our audit, we
haveconcluded that each of the following elements of the
Corporate Governance Statement is materially consistent
with the financial statements or our knowledge obtained
during the audit:
• Directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and
any material uncertainties identified set out on page 334;
• Directors’ explanation as to its assessment of the Company’s
prospects, the period this assessment covers and why
theperiod is appropriate set out on pages 51to52;
• Director’s statement on whether it has a reasonable
expectation that the Group will be able to continue
inoperation and meets its liabilities set out on page 52;
• Directors’ statement on fair, balanced and
understandable set out on page 217;
• Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out
onpage 212;
• The section of the annual report that describes the review
of effectiveness of risk management and internal control
systems set out on pages 212 to 213; and
• The section describing the work of the audit committee set
out on pages 161 to 169.
Responsibilities of directors
As explained more fully in the directors’ responsibilities
statement set out on page 217, 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 and the UK Corporate
Independent Auditor’s Report to the members of Standard Chartered PLC
Standard Chartered | Annual Report 2025320
Governance Code, the Financial Conduct Authority (FCA)
Listing Rules, the Main Board Listing Rules of the Hong
Kong Stock Exchange), 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 Mainland China, Hong Kong, India, Republic of
Korea, Singapore, the United Arab Emirates, the United
States of America, 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.
• 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
Annual Report 2025 | Standard Chartered 321
Financial statements
Financial statements
Consolidated income statement
For the year ended 31 December 2025
2025 2024
Notes$million$million
Interest income
24,547
27,862
Interest expense
(18,592)
(21,496)
Net interest income
3
5,955
6,366
Fees and commission income
5,349
4,623
Fees and commission expense
(1,100)
(889)
Net fee and commission income
4
4,249
3,734
Net trading income
5
10,294
9,615
Other operating income
6
444
(172)
Operating income
20,942
19,543
Staff costs
(9,109)
(8,510)
Premises costs
(434)
(401)
General administrative expenses
(2,591)
(2,465)
Depreciation and amortisation
(1,170)
(1,126)
Operating expenses
7
(13,304)
(12,502)
Operating profit before impairment losses and taxation
7,638
7,041
Credit impairment
8
(672)
(547)
Goodwill, property, plant and equipment and other impairment
9
(65)
(588)
Profit from associates and joint ventures
32
62
108
Profit before taxation
6,963
6,014
Taxation
10
(1,866)
(1,972)
Profit for the year
5,097
4,042
Profit attributable to:
Non-controlling interests
29
12
(8)
Parent company shareholders
5,085
4,050
Profit for the year
5,097
4,042
cents
cents
Earnings per share:
Basic earnings per ordinary share
12
195.4
141.3
Diluted earnings per ordinary share
12
189.6
137.7
The notes on pages 330 to 434 form an integral part of these financial statements.
Standard Chartered | Annual Report 2025322
2025 2024
Notes$million$million
Profit for the year
5,097
4,042
Other comprehensive income/(loss):
Items that will not be reclassified to income statement:
198
(181)
Own credit losses on financial liabilities designated at fair value through profit or loss
(154)
(426)
Equity instruments at fair value through other comprehensive income
371
71
Actuarial (loss)/gain on retirement benefit obligations
30
(11)
52
Revaluation surplus
5
25
Taxation relating to components of other comprehensive income
10
(13)
97
Items that may be reclassified subsequently to income statement:
1,520
(389)
Exchange differences on translation of foreign operations:
Net gains/(losses) taken to equity
788
(1,423)
Net gains on net investment hedges
14
129
678
Share of other comprehensive (loss)/income from associates and joint ventures
32
(28)
9
Debt instruments at fair value through other comprehensive income
Net valuation gains taken to equity
296
283
Reclassified to income statement
6
10
237
Net impact of expected credit losses
22
(35)
Cash flow hedges:
Net movements in cash flow hedge reserve
14
368
(101)
Taxation relating to components of other comprehensive income
10
(65)
(37)
Other comprehensive income/(loss) for the year, net of taxation
1,718
(570)
Total comprehensive income for the year
6,815
3,472
Total comprehensive income attributable to:
Non-controlling interests
29
45
(22)
Parent company shareholders
6,770
3,494
Total comprehensive income for the year
6,815
3,472
Financial statements
Consolidated statement of comprehensive income
For the year ended 31 December 2025
Annual Report 2025 | Standard Chartered 323
Financial statements
2025 2024
Notes$million$million
Assets
Cash and balances at central banks
13,35
77,746
63,447
Financial assets held at fair value through profit or loss
13
195,257
177,517
Derivative financial instruments
13,14
65,782
81,472
Loans and advances to banks
13,15
43,901
43,593
Loans and advances to customers
13,15
286,788
281,032
Investment securities
13
166,956
144,556
Other assets
20
67,931
43,468
Current tax assets
10
574
663
Prepayments and accrued income
3,058
3,207
Interests in associates and joint ventures
32
1,426
1,020
Goodwill and intangible assets
17
6,231
5,791
Property, plant and equipment
18
2,559
2,425
Deferred tax assets
10
493
414
Retirement benefit schemes in surplus
154
151
Assets classified as held for sale
21
1,099
932
Total assets
919,955
849,688
Liabilities
Deposits by banks
13
30,846
25,400
Customer accounts
13
530,161
464,489
Repurchase agreements and other similar secured borrowing
13,16
7,757
12,132
Financial liabilities held at fair value through profit or loss
13
89,597
85,462
Derivative financial instruments
13,14
68,204
82,064
Debt securities in issue
13,22
72,858
64,609
Other liabilities
23
46,655
44,681
Current tax liabilities
10
709
726
Accruals and deferred income
7,358
6,896
Subordinated liabilities and other borrowed funds
13,27
8,834
10,382
Deferred tax liabilities
10
752
567
Provisions for liabilities and charges
24
401
349
Retirement benefit schemes in deficit
323
266
Liabilities included in disposal groups held for sale
21
914
381
Total liabilities
865,369
798,404
Equity
Share capital and share premium account
28
6,614
6,695
Other reserves
10,406
8,724
Retained earnings
29,573
28,969
Total parent company shareholders’ equity
46,593
44,388
Other equity instruments
28
7,528
6,502
Total equity excluding non-controlling interests
54,121
50,890
Non-controlling interests
29
465
394
Total equity
54,586
51,284
Total equity and liabilities
919,955
849,688
The notes on pages 330 to 434 form an integral part of these financial statements.
These financial statements were approved by the Board of directors and authorised for issue on 24 February 2026 and signed
on its behalf by:
Maria Ramos
Group Chair
Bill Winters
Group Chief Executive
Consolidated balance sheet
As at 31 December 2025
Financial statements
Standard Chartered | Annual Report 2025324
Consolidated statement of changes in equity
For the year ended 31 December 2025
Fair value Fair value
through through
Ordinary Preferenceother other
share share Own compre-compre-Parent
capital capital and Capital credit hensive hensive company Other
and share share and adjust-income income Cash-flow Trans-share-equity Non-
premium premium merger ment reserve reserve hedge lation Retained holders’ instru-controlling
accountaccount
reserves
1
reserve– debt– equityreservereserveearningsequitymentsinterestsTotal
$million$million$million$million$million$million$million$million$million$million$million$million$million
As at 01 January 2024
5,321
1,494
17,453
100
(690)
330
91
(8,113)
28,459
44,445
5,512
396
50,353
Profit for the year
–
–
–
–
–
–
–
–
4,050
4,050
–
(8)
4,042
Other comprehensive (loss)/ income
10
–
–
–
(377)
442
(26)
8
(87)
(735)
227
2,9
(556)
–
(14)
(570)
Distributions
–
–
–
–
–
–
–
–
–
–
–
(43)
(43)
Other equity instruments issued,
netofexpenses
–
–
–
–
–
–
–
–
–
–
1,568
–
1,568
Redemption of other equity instruments
–
–
–
–
–
–
–
–
–
–
(553)
–
(553)
Treasury shares net movement
–
–
–
–
–
–
–
–
(168)
(168)
–
–
(168)
Share option expense, net of taxation
–
–
–
–
–
–
–
–
269
269
–
–
269
Dividends on ordinary shares
–
–
–
–
–
–
–
–
(780)
(780)
–
–
(780)
Dividends on preference shares and
AT1securities
–
–
–
–
–
–
–
–
(457)
(457)
–
–
(457)
Share buyback
6
(120)
–
120
–
–
–
–
–
(2,500)
(2,500)
–
–
(2,500)
Other movements
–
–
–
(1)
7
–
–
210
3
(131)
4
85
(25)
63
5
123
As at 31 December 2024
5,201
1,494
17,573
(278)
(241)
304
4
(8,638)
28,969
44,388
6,502
394
51,284
Profit for the year
–
–
–
–
–
–
–
–
5,085
5,085
–
12
5,097
Other comprehensive (loss)/income
10
–
–
–
(134)
284
236
8
311
885
103
2,9
1,685
–
33
1,718
Distributions
–
–
–
–
–
–
–
–
–
–
–
(50)
(50)
Other equity instruments issued,
netofexpenses
–
–
–
–
–
–
–
–
–
–
1,989
–
1,989
Redemption of other equity instruments
–
–
–
–
–
–
–
–
–
–
(1,000)
–
(1,000)
Treasury shares net movement
–
–
–
–
–
–
–
–
(452)
(452)
–
–
(452)
Share option expense, net of taxation
–
–
–
–
–
–
–
–
220
220
–
–
220
Dividends on ordinary shares
–
–
–
–
–
–
–
–
(954)
(954)
–
–
(954)
Dividends on preference shares
andAT1securities
–
–
–
–
–
–
–
–
(527)
(527)
–
–
(527)
Share buyback
7
(81)
–
81
–
–
–
–
–
(2,800)
(2,800)
–
–
(2,800)
Other movements
–
–
–
–
(27)
–
–
46
(71)
(52)
37
76
5
61
As at 31 December 2025
5,120
1,494
17,654
(412)
16
540
315
(7,707)
29,573
46,593
7,528
465
54,586
1 Includes capital reserve of $5 million (31 December 2024: $5 million), capital redemption reserve of $538 million (31 December 2024: $457 million) and merger reserve
of $17,111 million (31 December2024: $17,111 million).
2 Includes actuarial (loss)/gain, net of taxation on Group defined benefit schemes.
3 December 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.
4 Mainly includes movements related to Ghana hyperinflation.
5 Movements are primarily from non-controlling interest (refer note 29).
6 During 2024, the Group announced the following share buybacks: a share buyback of up to $1,000 million in February 2024, which was completed in June 2024;
anda share buyback of up to $1,500 million in July 2024, which was completed in January 2025 (refer note 28 for share buyback announced in July 2024).
7 During 2025, the Group announced the following share buybacks: a share buyback of up to $1,500 million in February 2025, which was completed in July 2025;
andashare buyback of up to $1,300 million in July 2025, which was completed in January 2026 (refer note 28).
8 Includes $348 million (31 December 2024: $72 million) mark-to-market gain on equity instruments (net of tax), $103 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 $103 million (31 December 2024: $174 million) gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings
partly offset by $9 million (31 December 2024: $13 million) capital gain tax.
10 All the amounts are net of tax.
Note 28 includes a description of each reserve.
The notes on pages 330 to 434 form an integral part of these financial statements.
Annual Report 2025 | Standard Chartered 325
Financial statements
Cash flow statement
For the year ended 31 December 2025
Group
Company
2024
2025 2024 2025
(Restated)
2
Notes$million$million$million$million
Cash flows from operating activities:
Profit before taxation
6,963
6,014
4,544
3,424
Adjustments for non-cash items and other adjustments
included within income statement
34
1,985
2,668
(3,083)
(1,670)
Change in operating assets
34
(28,128)
(66,431)
(1,234)
682
Change in operating liabilities
34
57,919
39,373
1,954
(137)
Contributions to defined benefit schemes
30
(94)
(68)
–
–
UK and overseas taxes paid
10
(1,804)
(2,045)
–
–
Net cash from/(used in) operating activities
36,841
(20,489)
2,181
2,299
Cash flows from investing activities:
Internally generated capitalised software
17
(1,037)
(953)
–
–
Disposal of Internally generated capitalised software
17
7
5
–
–
Purchase of property, plant and equipment
18
(320)
(456)
–
–
Disposal of property, plant and equipment
18
30
56
–
–
Disposal of held for sale property, plant and equipment
21
128
53
–
–
Acquisition of investment associates, and joint ventures
32
(104)
(12)
–
–
Dividends received from subsidiaries, associates and
joint ventures
32,34
47
36
5,160
4,101
Disposal of investment in subsidiaries, associates,
andjoint ventures
1
48
74
–
–
Purchase of investment securities
(208,814)
(217,448)
(223)
(1,287)
Disposal and maturity of investment securities
191,697
230,098
1,127
1,273
Net cash (used in)/from investing activities
(18,318)
11,453
6,064
4,087
Cash flows from financing activities:
Exercise of share options
56
33
56
33
Purchase of own shares
(508)
(201)
(508)
(201)
Cancellation of shares including share buyback
(2,719)
(2,500)
(2,719)
(2,500)
Premises and equipment lease liability principal payment
(205)
(205)
–
–
Issue of Additional Tier 1 Capital net of expenses
28
1,989
1,568
1,989
1,568
Redemption of Tier 1 Capital
28
(1,000)
(553)
(1000)
(553)
Interest paid on subordinated liabilities
34
(421)
(519)
(410)
(505)
Repayment of subordinated liabilities
34
(2,174)
(1,517)
(2,174)
(1,517)
Proceeds from issue of senior debts
34
11,583
11,044
7,955
7,422
Repayment of senior debts
34
(9,364)
(11,185)
(4,752)
(6,222)
Interest paid on senior debts
34
(1,892)
(1,366)
(1,576)
(1,367)
Net cash inflow from non-controlling interest
29
40
55
–
–
Distributions and dividends paid to non-controlling
interests, preference shareholders and AT1 securities
(577)
(500)
(527)
(457)
Dividends paid to ordinary shareholders
(954)
(780)
(954)
(780)
Net cash used in financing activities
(6,146)
(6,626)
(4,620)
(5,079)
Net increase/(decrease) in cash and cash equivalents
12,377
(15,662)
3,625
1,307
Cash and cash equivalents at beginning of the year
89,928
107,635
11,601
10,294
Effect of exchange rate movements on cash and
cashequivalents
2,617
(2,045)
–
–
Cash and cash equivalents at end of the year
35
104,922
89,928
15,226
11,601
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),
SCBSierra Leone Limited ($17 million), Shoal limited ($17 million) and Autumn life Pte. Ltd ($6 million).
2 Refer to note 34 for details of the restatement.
Interest received was $24,303 million (31 December 2024: $28,224 million), interest paid was $18,573 million (31 December 2024:
$21,776 million).
Financial statements
Standard Chartered | Annual Report 2025326
Company balance sheet
As at 31 December 2025
Notes
2025
$million
2024
$million
Non-current assets
Investments in subsidiary undertakings 32 63,442 61,593
Current assets
Derivative financial instruments 39 239 112
Financial assets held at fair value through profit or loss 39 18,475 19,049
Investment securities 39 4,904 5,808
Amounts owed by subsidiary undertakings 39 15,226 11,601
Total current assets 38,844 36,570
Current liabilities
Derivative financial instruments 39 777 1,065
Amounts owed to subsidiary undertakings 39 225 35
Financial liabilities held at fair value through profit or loss 39 17,498 16,852
Other creditors 1,278 959
Total current liabilities 19,778 18,911
Net current assets 19,066 17,659
Total assets less current liabilities 82,508 79,252
Non-current liabilities
Debt securities in issue 39 21,231 18,167
Subordinated liabilities and other borrowed funds 39 6,831 7,661
Total non-current liabilities 28,062 25,828
Total assets less liabilities 54,446 53,424
Equity
Share capital and share premium account 28 6,614 6,695
Other reserves 17,623 17,538
Retained earnings 22,685 22,691
Total shareholders’ equity 46,922 46,924
Other equity instruments 7,524 6,500
Total equity 54,446 53,424
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 period after tax is $4,534 million (31 December 2024: $3,408 million).
The notes on pages 330 to 434 form an integral part of these financial statements.
These financial statements were approved by the Board of directors and authorised for issue on 24 February 2026 and signed
on its behalf by:
Maria Ramos
Group Chair
Bill Winters
Group Chief Executive
Annual Report 2025 | Standard Chartered 327
Financial statements
Company statement of changes in equity
For the year ended 31 December 2025
Share capital and
share premium
account
$million
Capital and
merger reserve
1
$million
Own credit
adjustment
$million
Cash flow hedge
reserve
$million
Retained earnings
$million
Other equity
instruments
$million
Total
$million
As at 1 January 2024 6,815 17,453 (8) (36) 22,952 5,510 52,686
Profit for the year
2
– – – – 3,408 – 3,408
Other comprehensive
(loss)/income
5
– – (11) 20 – – 9
Other equity instruments
issued, netof expenses – – – – – 1,568 1,568
Treasury shares
netmovement – – – – (168) – (168)
share option expenses – – – – 250 – 250
Dividends on
ordinaryshares – – – – (780) – (780)
Dividends on preference
share and AT1securities – – – – (457) – (457)
Redemption of other
equity instruments – – – – – (553) (553)
Share buyback
3
(120) 120 – – (2,500) – (2,500)
Other movements – – – – (14) (25) (39)
As at 31 December 2024 6,695 17,573 (19) (16) 22,691 6,500 53,424
Profit for the year
2
– – – – 4,534 – 4,534
Other comprehensive
(loss)/income
5
– – (10) 14 – – 4
Other equity instruments
issued, netofexpenses – – – – – 1,989 1,989
Treasury shares
netmovement – – – – (452) – (452)
Share option expenses – – – – 219 – 219
Dividends on
ordinaryshares – – – – (954) – (954)
Dividends on preference
share and AT1securities – – – – (527) – (527)
Redemption of other
equity instruments – – (1,000) (1,000)
Share buyback
4
(81) 81 – – (2,800) – (2,800)
Other movements – – – – (26) 35 9
As at 31 December 2025 6,614 17,654 (29) (2) 22,685 7,524 54,446
1 Includes capital reserve of $5 million (31 December 2024: $5 million), capital redemption reserve of $538 million (31 December 2024: $457 million) and merger reserve
of $17,111 million (31 December2024: $17,111 million).
2 Includes dividend received of $2,299 million (2024: $2,395 million) from Standard Chartered Holdings Limited.
3 During 2024, the Group announced the following share buybacks: a share buyback of up to $1,000 million in February 2024, which was completed in June 2024;
anda share buyback of up to $1,500 million in July 2024, which was completed in January 2025 (refer to note 28 for share buyback announced in July 2024).
4 During 2025, the Group announced the following share buybacks: a share buyback of up to $1,500 million in February 2025, which was completed in July 2025;
andashare buyback of up to $1,300 million in July 2025, which was completed in January 2026 (refer note 28).
5 All the amounts are net of tax.
Note 28 includes a description of each reserve.
The notes on pages 330 to 434 form an integral part of these financial statements.
Financial statements
Standard Chartered | Annual Report 2025328
Financial statements
Notes to the financial statements
Section Note Page
Basis of preparation
1 Accounting policies 330
Performance/return
2 Segmental information 335
3 Net interest income 337
4 Net fees and commission 338
5 Net trading income 340
6 Other operating income 340
7 Operating expenses 341
8 Credit impairment 342
9 Goodwill, property, plant and equipment and other impairment 347
10 Taxation 347
11 Dividends 351
12 Earnings per ordinary share 352
Assets and liabilities
heldat fair value
13 Financial instruments 353
14 Derivative financial instruments 373
Financial instruments
held at amortised cost
15 Loans and advances to banks and customers 380
16 Reverse repurchase and repurchase agreements including other similar
lending and borrowing
380
Other assets and
investments
17 Goodwill and intangible assets 382
18 Property, plant and equipment 384
19 Leased assets 385
20 Other assets 386
21 Assets held for sale and associated liabilities 387
Funding, accruals,
provisions, contingent
liabilities and legal
proceedings
22 Debt securities in issue 388
23 Other liabilities 389
24 Provisions for liabilities and charges 389
25 Contingent liabilities and commitments 390
26 Legal and regulatory matters 390
Capital instruments,
equity and reserves
27 Subordinated liabilities and other borrowed funds 392
28 Share capital, other equity instruments and reserves 393
29 Non-controlling interests 397
Employee benefits
30 Retirement benefit obligations 398
31 Share-based payments 403
Scope of consolidation
32 Investments in subsidiary undertakings, joint ventures and associates 408
33 Structured entities 415
Cash flow statement
34 Cash flow statement 417
35 Cash and cash equivalents 418
Other disclosure matters
36 Related party transactions 419
37 Post balance sheet events 420
38 Auditor’s remuneration 420
39 Standard Chartered PLC (Company) 421
40 Re-presentation tables of Credit risk disclosures by key geography 424
41 Related undertakings of the Group 429
Annual Report 2025 | Standard Chartered 329
Financial statements
Financial statements
Notes to the financial statements
1. Accounting policies
Statement of compliance
The Group financial statements consolidate Standard Chartered PLC (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 marked as ‘audited’ from the start of the Credit Risk section to the end of Other principal risks
in the same section.
b) Capital review: Tables marked as ‘audited’ from the start of ‘CRD Capital base’ to the end of ‘Movement in total capital’,
excluding ‘Total risk-weighted assets’.
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 with respect to the classification of income attributable to geographic markets
which has 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 geographic markets’ operating income with client segments in line with the Regulatory News Service (RNS) filing 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 (CODM).
Where the re-presentation has impacted disclosure, it is included within the footnotes in the following sections and tables:
• Statement of results table
• Group Chief Financial Officer’s review, Summary of financial performance table
• Financial review tables including the following: Operating income by product, profit before tax by client segment,
Adjusted net interest income and margin, and Restructuring, DVA, FFG and other items
• Supplementary financial information tables including the following: Underlying performance by client segment, Corporate
& Investment Banking, Wealth & Retail Banking, Ventures, Central & other items, Underlying performance by key market,
and Quarterly underlying operating income by product
• Underlying versus reported results reconciliations, Net interest income and Non NII table
• Movement in risk-weighted assets
• Risk review: Movement tables for Corporate & Investment Banking (audited), Wealth & Retail Banking (audited), and
Wealth & Retail Banking – Secured (audited)
• Risk review: Credit impairment charge (audited)
• Notes to the financial statements: Note 2 Segmental information and Note 4 Net fees and commission
Comparatives
Certain comparatives on the Company Cash flow Statement have been restated to align with the current year presentation.
This restatement has no impact to the Company's Income Statement, Statement of Comprehensive Income, Balance Sheet
and Statement of Changes in Equity. Details of these changes are set out in the relevant sections and notes below:
• Cash flow statement
• Note 34 Cash flow statement
Standard Chartered | Annual Report 2025330
Change in accounting policy
Prior year amounts for certain Credit risk tables (required by IFRS 7 – Financial Instruments: Disclosures) within the Risk
review on pages 218 to 308 were also represented for a change in accounting policy for the presentation of the Group’s
geo-graphic disclosures to align to information reported to key management personnel. These disclosures changed from
being based on a management view, which was principally the location from which a client relationship is managed,
to being based on a view reflecting the location in which exposures are financially booked. This change provides more
relevant information because it more closely reflects the Group’s exposure to risk presented to key management personnel.
The change impacted the following tables: Loans and advances analysis by client segment, credit quality and key
geography, Forborne and other modified loans by key geography, and Industry and Retail Products analysis of loans and
advances by key geography – Corporate & Investment Banking and Central & other items. The most significant impact of this
change was in net loans and advances to customers in the UK, which increased by $14.6 billion. This amount was re-classified
from a number of geographic locations. There has been no impact to Earnings Per Share or Diluted Earnings per Share from
this change. Refer to the bridge tables in Note 40 on page 428 for a reconciliation between the tables previously disclosed at
31 December 2024 and the re-presented tables in these financial statements.
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:
Significant accounting estimates and critical judgements
Significant accounting estimates and judgements represent those items that 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 13)
• Investments in subsidiary undertakings, joint ventures and associates – China Bohai associate accounting and impairment
analysis (Note 32)
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 17)
• Provisions for liabilities and charges – Other provisions (Note 24)
• Legal and regulatory matters (Note 26)
• Retirement benefit obligations (Note 30)
• Share-based payments (Note 31)
Annual Report 2025 | Standard Chartered 331
Financial statements
Financial statements
Notes to the financial statements
1. Accounting policies continued
Climate change impact on the Group’s balance sheet
Climate, and the impact of climate on the Group’s balance sheet is considered as an area which can impact accounting
estimates and judgments through the uncertainty of future events and the impact of that uncertainty on the Group’s assets
and liabilities, performance, or cash flows.
The Group has assessed the impact of climate risk on the financial report. This is set out within the non-financial
and sustainability information statement on page 50 and the Sustainability Review, which incorporate the 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 Group has described how it manages climate risk, which manifests
through the Group’s business and operations and impact the relevant Principal Risk Types (PRTs). This is managed via the
ESGR Risk Type framework.
The areas of impact 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). 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. Across 2025 we
focused 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 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, which has been recorded as a management overlay for
the 2025 year end.
Standard Chartered | Annual Report 2025332
The Group’s corporate plan has a five-year outlook and considers the highest emitting sectors the Group finances.
The majority of the 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, while 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 assets supported by discounted cash flow models (such as Value in Use) which utilise the corporate plan.
The 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. Accordingly, the Group does not currently anticipate any
significant residual impact on its financial position, performance or cashflows over the short, medium or long term.
While providing more detail would be market sensitive, the Group current and anticipated future performance of
opportunities can be seen in the progression of our Sustainable Finance mobilisation, assets and liabilities, and revenue,
as described within the Sustainability Review.
IFRS and Hong Kong accounting requirements
As required by the Hong Kong Listing Rules, an explanation of the differences in accounting practices between UK-adopted
international accounting standards and EU IFRS, and Hong Kong Financial Reporting Standards is required to be disclosed.
There would be no significant differences had these accounts been prepared in accordance with Hong Kong Financial
Reporting Standards.
New accounting standards adopted by the Group
There were no new accounting standards or interpretations adopted by the Group 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
1 January 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 1 January 2027 and while the Group assessment
remains ongoing, it is currently not expected to have a material impact on the Group’s financial statements other than
changes in the presentation of the primary statements.
Annual Report 2025 | Standard Chartered 333
Financial statements
Financial statements
Notes to the financial statements
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 Board 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:
• 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, recent regulatory developments.
• Consideration of stress testing performed, including the Group Recovery Plan (RP) which include 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 of the Group, including the capital and leverage ratios, and Internal Capital Adequacy
Assessment Process (ICAAP), which summarises the Group’s 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 the Group, including the Internal Liquidity Adequacy Assessment Process
(ILAAP), which considers the Group’s liquidity position, its framework and whether sufficient liquidity resources are being
maintained to meet liabilities as they fall due, was also reviewed. Further, funding and liquidity was considered in the
context of the risk appetite metrics, including the 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 Group’s portfolio of debt securities held at amortised cost.
• A detailed review of all principal risks as well as topical 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.
Standard Chartered | Annual Report 2025334
2. Segmental information
Basis of preparation
Underlying segment and market performance is based on arms-length transfer pricing and reflects the underlying profitability
including related capital and infrastructure costs. Income attribution to segment and markets is based on their contribution
to the revenue generated across the network, considering factors such as booking location, trader and sales effort. Treasury
outcomes such as MREL, FTP, Structural Hedges and Liquidity Pool which segments can directly benefit, influence, and optimise
are allocated to individual business segments. The analysis reflects how the client segments and markets are managed
internally to drive better decision-making, resource allocation and return outcomes.
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
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.
Restructuring and other items excluded from underlying results
The Group’s reported IFRS performance is adjusted for certain items to arrive at alternative performance measures.
These items include profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic
intent, other infrequent and/or exceptional transactions that are significant or material in the context of the Group’s normal
business earnings for the period and items which management and investors would ordinarily identify separately when
assessing consistent performance period by period. The alternative performance measures are not within the scope of IFRS
and not a substitute for IFRS measures. These adjustments are set out below.
Restructuring and other items loss of $937 million primarily relate to the exits in AME, Debit Valuation Adjustment (DVA), and
reflect the impact of actions to transform the organisation to improve productivity, primarily additional redundancy charges,
simplifying technology platforms and optimising the Group’s office space and property footprint, Fit For Growth costs that are
primarily severance costs, costs of staff working on FFG initiatives, legal and professional fees and an additional provision with
respect to a proposed penalty amount with regards to the Korea equity-linked securities (ELS) matter and the settlement
of a litigation matter.
Reconciliations between underlying and reported results are set out in the tables below:
2025
Net loss on
businesses
disposed of/ Other
Underlying
Restructuring
1
FFG
1
DVA
held for sale
2
items
3,4,5
Reported
$million $million $million $million $million $million $million
Operating income
4
20,894
(24)
–
(31)
(10)
113
20,942
Operating expenses
5
(12,347)
(289)
(510)
–
–
(158)
(13,304)
Operating profit/(loss) before impairment losses
and taxation
8,547
(313)
(510)
(31)
(10)
(45)
7,638
Credit impairment
(676)
4
–
–
–
–
(672)
Other impairment
(42)
(2)
(21)
–
–
–
(65)
Profit from associates and joint ventures
71
(9)
–
–
–
–
62
Profit/(loss) before taxation
7,900
(320)
(531)
(31)
(10)
(45)
6,963
2024
Operating income
19,696
103
–
(24)
(232)
–
19,543
Operating expenses
(11,790)
(456)
(156)
–
–
(100)
3
(12,502)
Operating profit/(loss) before impairment losses
and taxation
7,906
(353)
(156)
(24)
(232)
(100)
7,041
Credit impairment
(557)
10
–
–
–
–
(547)
Other impairment
(588)
–
–
–
–
–
(588)
Profit from associates and joint ventures
50
58
–
–
–
–
108
Profit/(loss) before taxation
6,811
(285)
(156)
(24)
(232)
(100)
6,014
1 FFG (Fit for Growth) charge previously reported within Restructuring has been re-presented as a separate item.
2 Net loss on businesses disposed of/held for sale 2025 include Cameroon and Gambia loss on business disposal $5 million each, 2024 include $172 million primarily
relating to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe, $26 million loss on sale of Angola, $19 million loss on Sierra Leone
and $15 million loss on the Aviation business disposal.
3 Other items 2024 include $100 million charge relating to Korea equity-linked securities (ELS) portfolio.
4 Other items 2025 operating income include gain on sale of office space.
5 Other items 2025 operating expenses include a provision relating to the Korea equity-linked securities and the settlement of a litigation matter .
Annual Report 2025 | Standard Chartered 335
Financial statements
Financial statements
Notes to the financial statements
2. Segmental information continued
Underlying performance by client segment
2025
2024
1
Corporate & Wealth & Corporate & Wealth &
Investment Retail Central & Investment Retail Central &
Banking Banking Ventures other items Total Banking Banking Ventures other items Total
$million $million $million $million $million $million $million $million $million $million
Operating income
12,394
8,464
415
(379)
20,894
11,935
8,021
183
(443)
19,696
External
11,718
3,619
416
5,141
20,894
10,480
3,533
184
5,499
19,696
Inter-segment
676
4,845
(1)
(5,520)
–
1,455
4,488
(1)
(5,942)
–
Operating expenses
(6,509)
(4,982)
(461)
(395)
(12,347)
(6,334)
(4,749)
(460)
(247)
(11,790)
Operating profit/(loss) before
impairment losses and taxation
5,885
3,482
(46)
(774)
8,547
5,601
3,272
(277)
(690)
7,906
Credit impairment
(4)
(595)
(59)
(18)
(676)
120
(623)
(73)
19
(557)
Other impairment
(6)
(4)
(23)
(9)
(42)
(290)
(112)
(18)
(168)
(588)
Profit from associates and
joint ventures
–
–
(39)
110
71
–
–
(17)
67
50
Underlying profit/(loss)
before taxation
5,875
2,883
(167)
(691)
7,900
5,431
2,537
(385)
(772)
6,811
Restructuring & Other items
2,5
(525)
(456)
(4)
48
(937)
(234)
(315)
(3)
(245)
(797)
Reported profit/(loss)
before taxation
5,350
2,427
(171)
(643)
6,963
5,197
2,222
(388)
(1,017)
6,014
Total assets
516,923
130,489
8,335
264,208
919,955
485,680
122,357
6,259
235,392
849,688
Of which: loans and advances
to customers
205,493
126,980
2,660
14,453
349,586
197,582
119,263
1,388
21,324
339,557
Loans and advances
to customers
142,698
126,978
2,659
14,453
286,788
139,063
119,257
1,388
21,324
281,032
Loans held at fair value
through profit or loss (FVTPL)
3
62,795
2
1
–
62,798
58,519
6
–
–
58,525
Total liabilities
491,976
256,332
6,276
110,785
865,369
477,385
220,416
5,277
95,326
798,404
Of which: customer accounts
4
319,670
252,033
5,773
7,698
585,174
297,690
216,662
5,028
3,883
523,263
1 Segment results have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025.
2 Other items 2025 include gains on sale of office space and include a provision relating to the Korea equity-linked securities and the settlement of a litigation matter.
Other items 2024 include $100 million charge relating to Korea equity-linked securities (ELS) portfolio, $172 million primarily relating to recycling of FX translation
losses from reserves into P&L on the sale of Zimbabwe, $26 million loss on sale of Angola, $19 million loss on Sierra Leone and $15 million loss on the Aviation business
disposal. Refer to the Restructuring, FFG (Fit for Growth), DVA and Other items table on page 58.
3 Loans held at FVTPL includes $50,443 million (2024: $51,441 million) of reverse repurchase agreements.
4 Customer accounts includes $19,414 million (2024: $21,772 million) of FVTPL and $35,599 million (2024: $37,002 million) of repurchase agreements.
5 Restructuring, FFG (Fit for Growth), DVA, Other items have been combined and are now disclosed as one line item i.e. ‘Restructuring and Other items’.
Operating income by client segment
2025
2024
Corporate & Wealth & Corporate & Wealth &
Investment Retail Central & Investment Retail Central &
Banking Banking Ventures other items Total
Banking
1
Banking
1
Ventures
other items
1
Total
$million $million $million $million $million $million $million $million $million $million
Underlying versus reported:
Underlying operating income
12,394
8,464
415
(379)
20,894
11,935
8,021
183
(443)
19,696
Restructuring
(14)
1
–
(11)
(24)
69
23
–
11
103
DVA
(31)
–
–
–
(31)
(24)
–
–
–
(24)
Other items
2,3
–
–
–
103
103
–
–
–
(232)
(232)
Reported operating income
12,349
8,465
415
(287)
20,942
11,980
8,044
183
(664)
19,543
Additional segmental income:
Net interest income
1,397
5,126
115
(683)
5,955
2,090
5,175
100
(999)
6,366
Net fees and commission income
2,091
2,192
61
(95)
4,249
1,938
1,855
52
(111)
3,734
Net trading and other income
8,861
1,147
239
491
10,738
7,952
1,014
31
446
9,443
Reported operating income
12,349
8,465
415
(287)
20,942
11,980
8,044
183
(664)
19,543
1 Segment results have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025.
2 Other items 2024 include $172 million primarily relating to recycling of FX translation losses from reserves into P&L on the sale of Zimbabwe, $26 million loss on sale
of Angola, $19 million loss on Sierra Leone and $15 million loss on the Aviation business disposal.
3 Other items 2025 include $113 million gains on sale of office space and $10 million loss on business disposal.
Standard Chartered | Annual Report 2025336
Reported operating income by geography
Hong Kong Korea China Taiwan Singapore India UAE UK US Other Group
$million $million $million $million $million $million $million $million $million $million $million
2025
5,547
1,135
1,159
563
3,311
1,643
1,191
912
1,254
4,227
20,942
2024
4,797
1,085
1,327
577
2,573
1,323
837
278
1,288
5,458
19,543
Reported operating income by geography is based on the revenues attributed to all foreign countries in total from which the
Group derives revenues.
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
2,126
2,520
Loans and advances to banks
2,209
2,368
Loans and advances to customers
14,045
16,179
Debt securities
4,855
5,165
Other eligible bills
1,210
1,495
Accrued on impaired assets (discount unwind)
102
135
Interest income
24,547
27,862
Of which: financial instruments held at fair value through other comprehensive income
3,745
3,773
Deposits by banks
664
806
Customer accounts
13,878
16,276
Debt securities in issue
3,432
3,610
Subordinated liabilities and other borrowed funds
552
744
Interest expense on IFRS 16 lease liabilities
66
60
Interest expense
18,592
21,496
Net interest income
5,955
6,366
Annual Report 2025 | Standard Chartered 337
Financial statements
Financial statements
Notes to the financial statements
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.
Standard Chartered | Annual Report 2025338
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.
2025 2024
$million $million
Fees and commissions income
5,349
4,623
Of which:
Financial instruments that are not fair valued through profit or loss
1,566
1,436
Trust and other fiduciary activities
793
632
Fees and commissions expense
(1,100)
(889)
Of which:
Financial instruments that are not fair valued through profit or loss
(376)
(245)
Trust and other fiduciary activities
(68)
(50)
Net fees and commission
4,249
3,734
2025
2024
Corporate Corporate
& Wealth & Central & & Wealth & Central &
Investment Retail Other Investment Retail Other
Banking Banking Ventures Items Total Banking
Banking
1
Ventures
1
Items
1
Total
$million $million $million $million $million $million $million $million $million $million
Transaction Services
1,591
–
–
–
1,591
1,456
–
–
–
1,456
Payments & Liquidity
642
–
–
–
642
634
–
–
–
634
Securities & Prime Services
346
–
–
–
346
254
–
–
–
254
Trade & Working Capital
603
–
–
–
603
568
–
–
–
568
Global Banking
1,091
–
–
–
1,091
937
–
–
–
937
Lending & Financial Solutions
673
–
–
–
673
633
–
–
–
633
Capital Markets & Advisory
418
–
–
–
418
304
–
–
–
304
Global Markets
51
–
–
–
51
36
–
–
–
36
Macro Trading
1
–
–
–
1
(3)
–
–
–
(3)
Credit Trading
50
–
–
–
50
40
–
–
–
40
Valuation & Other Adj
–
–
–
–
–
(1)
–
–
–
(1)
Wealth solutions
–
2,006
–
–
2,006
–
1,598
–
–
1,598
Investment Products
–
1,252
–
–
1,252
–
929
–
–
929
Bancassurance
–
754
–
–
754
–
669
–
–
669
Deposits & Mortgages
–
211
–
–
211
–
222
–
–
222
CCPL & Other Unsecured Lending
–
282
–
–
282
–
321
–
–
321
Ventures
–
–
89
–
89
–
–
78
–
78
Digital Banks
–
–
54
–
54
–
–
43
–
43
SCV
–
–
35
–
35
–
–
35
–
35
Treasury & Other
–
28
–
–
28
–
27
–
(52)
(25)
Fees and commission income
2,733
2,527
89
–
5,349
2,429
2,168
78
(52)
4,623
Fees and commission expense
(642)
(335)
(28)
(95)
(1,100)
(491)
(313)
(26)
(59)
(889)
Net fees and commission
2,091
2,192
61
(95)
4,249
1,938
1,855
52
(111)
3,734
1 Products 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 income.
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 $363 million (31 December
2024: $419 million), which will be earned evenly over the remaining life of the contract until June 2032. For the twelve months
ended 31 December 2025, $56 million of fee income was released from deferred income (31 December 2024: $56 million).
Annual Report 2025 | Standard Chartered 339
Financial statements
Financial statements
Notes to the financial statements
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
10,294
9,615
Significant items within net trading income include:
Gains on instruments held for trading
1
8,267
7,418
Gains on financial assets mandatorily at fair value through profit or loss
5,468
5,392
(Losses)/gains on financial assets designated at fair value through profit or loss
(10)
8
Losses on financial liabilities designated at fair value through profit or loss
(3,476)
(3,252)
1 Includes $87 million gain (31 December 2024: $583 million gain) 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
33
40
Net loss on disposal of fair value through other comprehensive income debt instruments
(10)
(237)
Net loss on amortised cost financial assets
(43)
(27)
Net gain/(loss) on sale of businesses
242
1
(210)
2
Dividend income
10
5
Other
3
212
257
Other operating income/(loss)
444
(172)
1 Includes $241 million gain from disposal of businesses ($238 million gain from Standard Chartered Research and Technology India Private Limited; and $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 $20 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, partly offset by gain of $17 million from disposal of Venture
entities (Shoal limited and Autumn life Pte. Ltd). Total cash consideration received was $74 million ($24 million: SCB Zimbabwe Limited, $10 million: SCB Angola S.A.,
$17 million: SCB Sierra Leone Limited, $17 million: Shoal Limited and $6 million: Autumn life Pte. Ltd).
3 2025 balance includes $133 million gain on disposal of property, plant and equipment, IAS 29 adjustment Ghana hyperinflationary impact ($8 million) and
immaterial balances across other geographies. 2024 balance includes IAS 29 adjustment Ghana hyperinflationary impact ($139 million), Research and development
expenditure credit ($32 million), Rebates/incentives received from VISA card ($25 million), Gain on disposal of property, plant and equipment ($23 million),
Mark-to-market gains from deferred compensation income ($17 million), and immaterial balances across other geographies.
On 26 June 2025, the Group disposed of its entire interest in Standard Chartered Research and Technology India Private Limited
(SCRTIPL), a subsidiary, as part of a combined share swap and primary investment transaction (the Solv India transaction or the
transaction). The transaction has resulted in the Group recognising Jumbotail Technologies Private Limited as an associate.
The carrying amount of the net assets of SCRTIPL at the date of the Solv India transaction was $16 million. The Group recognised
a gain on the transaction of $238 million. The consideration received in the combined share swap was $344 million, including
a primary cash investment of $80 million. Disposal costs were approximately $9 million.
The gain on disposal arose because the carrying value of the subsidiary’s net assets was exceeded by the consideration
received. No impairment of OCI balances was required. The disposal has resulted in the recycling of $3 million of Currency
Translation Adjustments to profit and loss.
The Group elected to apply the 12-month measurement exemption to finalise the purchase price allocation. The allocation
is incomplete at 31 December 2025 as additional analysis is required to finalise the nature and value of intangible assets.
Standard Chartered | Annual Report 2025340
7. Operating expenses
2025 2024
$million $million
Staff costs:
Wages and salaries
6,962
6,567
Social security costs
286
246
Other pension costs (Note 30)
518
451
Share-based payment costs (Note 31)
399
334
Other staff costs
944
912
9,109
8,510
Premises and equipment expenses:
434
401
General administrative expenses:
UK bank levy
52
90
Other general administrative expenses
2,539
2,375
2,591
2,465
Depreciation and amortisation:
Property, plant and equipment:
Premises
315
299
Equipment
166
128
Intangibles:
Software
687
695
Acquired on business combinations
2
4
1,170
1,126
Total operating expenses
13,304
12,502
Other staff costs include redundancy expenses of $193 million (31 December 2024: $186 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 interests in shares are disclosed in the Directors’ remuneration report on page 180.
Transactions with directors, officers and other related parties are disclosed in Note 36.
Operating expenses include research expenditures of $1,210 million (31 December 2024: $1,187 million), which was recognised
as an expense in the year. In addition to this, there was a provision relating to the Korea equity-linked securities and the
settlement of a litigation matter.
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.
Annual Report 2025 | Standard Chartered 341
Financial statements
Financial statements
Notes to the financial statements
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 (see page 264).
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.
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 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.
Standard Chartered | Annual Report 2025342
Accounting policy continued
For credit-impaired financial instruments, the estimate of cash shortfalls may require the use of expert credit judgement.
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.
Annual Report 2025 | Standard Chartered 343
Financial statements
Financial statements
Notes to the financial statements
8. Credit impairment continued
Accounting policy continued
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.
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;
• 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 trigger for significant increase in credit risk (see page 275) 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. 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.
Standard Chartered | Annual Report 2025344
Accounting policy continued
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 cash flow 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.
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 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 .
Annual Report 2025 | Standard Chartered 345
Financial statements
Financial statements
Notes to the financial statements
8. Credit impairment continued
Accounting policy continued
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.
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 a 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
652
590
Net credit impairment on debt securities
1
37
(58)
Net credit impairment relating to financial guarantees and loan commitments
(24)
18
Net credit impairment relating to other financial assets
7
(3)
Credit impairment
1
672
547
1 Includes impairment charge of $5 million (2024: $14 million release) on originated credit-impaired debt securities.
Standard Chartered | Annual Report 2025346
9. Goodwill, property, plant and equipment and other impairment
Accounting policy
Refer to the below referenced notes for the relevant accounting policy.
20252024
$million$million
Impairment of property, plant and equipment (Note 18)
–
11
Impairment of other intangible assets (Note 17)
45
561
Other
20
16
Goodwill, property, plant and equipment and other impairment
65
588
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
–
16
Adjustments in respect of prior years (including double tax relief)
7
1
Foreign tax:
Current tax charge on income for the year
1,873
1,752
Adjustments in respect of prior years
(45)
(8)
1,835
1,761
Deferred tax:
Origination/reversal of temporary differences
112
198
Adjustments in respect of prior years
(81)
13
31
211
Tax on profits on ordinary activities
1,866
1,972
Effective tax rate
26.8%
32.8%
Annual Report 2025 | Standard Chartered 347
Financial statements
Financial statements
Notes to the financial statements
10. Taxation continued
The tax charge for the year of $1,866 million (31 December 2024: $1,972 million) on a profit before tax of $6,963 million
(31 December 2024: $6,014 million) reflects the impact of non-creditable withholding taxes and other taxes, non-deductible
expenses and tax losses for which no deferred tax assets are recognised. These are partly offset by countries with tax rates
lower than the UK, the most significant of which are Hong Kong and Singapore, and tax-exempt income.
Foreign tax includes current tax of $359 million (31 December 2024: $272 million) on the profits assessable in Hong Kong.
Deferred tax includes origination or reversal of temporary differences of $17 million (31 December 2024: $8 million) provided
at a rate of 16.5 per cent (31 December 2024: 16.5 per cent) on the profits assessable in Hong Kong.
The Group falls within the Pillar Two global minimum tax rules which apply in the UK from 1 January 2024. The IAS 12 exception
to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes has been
applied. The current tax charge for the period ended 31 December 2025 includes $14m in respect of current period Pillar Two
income taxes (31 December 2024: $17m) and $10m in respect of the prior period (31 December 2024: $nil).
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
6,963
6,014
Tax at 25 per cent (2024: 25 per cent)
1,741
25.0
1,504
25.0
Lower tax rates on overseas earnings
(482)
(6.9)
(425)
(7.1)
Higher tax rates on overseas earnings
219
3.1
269
4.5
Tax at domestic rates applicable where profits earned
1,478
21.2
1,348
22.4
Non-creditable withholding taxes and other taxes
319
4.6
260
4.3
Tax exempt income
(160)
(2.3)
(133)
(2.2)
Share of associates and joint ventures
(10)
(0.2)
(6)
(0.1)
Non-deductible expenses
256
3.7
243
4.0
Bank levy
13
0.2
23
0.4
Non-taxable losses on investments
1
(25)
(0.4)
35
0.6
Payments on financial instruments in reserves
(80)
(1.2)
(72)
(1.2)
Deferred tax not recognised
220
3.2
298
5.0
Deferred tax rate changes
3
0.1
(3)
–
Adjustments to tax charge in respect of prior years
(119)
(1.7)
6
0.1
Other items
(29)
(0.4)
(27)
(0.5)
Tax on profit on ordinary activities
1,866
26.8
1,972
32.8
1 2025 Includes tax impact of $3m (2024:$55m) 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 statutory tax rates, changes in tax legislation and tax rates and resolution of uncertain tax positions.
Standard Chartered | Annual Report 2025348
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
(11)
(2)
(13)
(16)
113
97
Own credit adjustment
(1)
20
19
1
49
50
Equity instruments at fair value through
other comprehensive income
(9)
(26)
(35)
(17)
76
59
Retirement benefit obligations
(1)
4
3
–
(12)
(12)
Items that may be reclassed subsequently
to income statement
(3)
(62)
(65)
(7)
(30)
(37)
Debt instruments at fair value through
other comprehensive income
(3)
(5)
(8)
(7)
(44)
(51)
Cash flow hedges
–
(57)
(57)
–
14
14
Total tax credit/(charge) recognised
in equity
(14)
(64)
(78)
(23)
83
60
Current tax: The following are the movements in current tax during the year:
2025 2024
Current tax comprises: $million $million
Current tax assets
663
484
Current tax liabilities
(726)
(811)
Net current tax opening balance
(63)
(327)
Movements in income statement
(1,835)
(1,761)
Movements in other comprehensive income
(14)
(23)
Taxes paid
1,804
2,045
Other movements
(27)
3
Net current tax balance as at 31 December
(135)
(63)
Current tax assets
574
663
Current tax liabilities
(709)
(726)
Total
(135)
(63)
Annual Report 2025 | Standard Chartered 349
Financial statements
Financial statements
Notes to the financial statements
10. Taxation continued
Deferred tax: The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon
during the year:
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
(380)
(16)
4
–
(392)
Impairment provisions on loans and advances
190
(6)
(7)
–
177
Tax losses carried forward
74
15
(34)
–
55
Equity Instruments at Fair value through other
comprehensive income
(62)
(13)
(2)
(26)
(103)
Debt Instruments at Fair value through other
comprehensive income
(30)
7
1
(5)
(27)
Cash flow hedges
(9)
(4)
–
(57)
(70)
Own credit adjustment
4
–
–
20
24
Retirement benefit obligations
(7)
1
11
4
9
Share-based payments
54
2
15
–
71
Other temporary differences
13
1
(19)
2
(3)
Net deferred tax
(153)
(13)
(31)
(62)
(259)
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
(424)
7
40
(3)
(380)
Impairment provisions on loans and advances
286
(2)
(94)
–
190
Tax losses carried forward
97
(24)
1
–
74
Equity Instruments at Fair value through other
comprehensive income
(144)
6
–
76
(62)
Debt Instruments at Fair value through other
comprehensive income
27
3
(16)
(44)
(30)
Cash flow hedges
(25)
2
–
14
(9)
Own credit adjustment
(71)
26
–
49
4
Retirement benefit obligations
4
(5)
6
(12)
(7)
Share-based payments
43
(1)
12
–
54
Other temporary differences
139
(1)
(160)
35
13
Net deferred tax
(68)
11
(211)
115
(153)
Deferred tax comprises assets and liabilities as follows:
31.12.25
31.12.24
Total Asset Liability Total Asset Liability
$million $million $million $million $million $million
Deferred tax comprises:
Accelerated tax depreciation
(392)
44
(436)
(380)
19
(399)
Impairment provisions on loans
and advances
177
207
(30)
190
139
51
Tax losses carried forward
55
14
41
74
51
23
Equity Instruments at Fair value through
other comprehensive income
(103)
(3)
(100)
(62)
(12)
(50)
Debt Instruments at Fair value through
other comprehensive income
(27)
(7)
(20)
(30)
(14)
(16)
Cash flow hedges
(70)
(11)
(59)
(9)
–
(9)
Own credit adjustment
24
1
23
4
4
–
Retirement benefit obligations
9
33
(24)
(7)
16
(23)
Share-based payments
71
21
50
54
12
42
Other temporary differences
(3)
194
(197)
13
199
(186)
(259)
493
(752)
(153)
414
(567)
Standard Chartered | Annual Report 2025350
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 $55 million relating
to tax losses carried forward, of which $41 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
Net Gross Net Gross
2025 2025 2024 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
(610)
(6,527)
(611)
(6,827)
Tax losses
2,562
10,644
2,494
10,414
Held over gains on incorporation of overseas branches
(387)
(1,468)
(360)
(1,366)
Other temporary differences
327
1,273
356
1,363
11. Dividends
The Board considers a number of factors prior to dividend declaration which includes 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.
Dividends on equity instruments are recognized as a liability once they have been declared and no longer at the discretion of
the directors, and in certain situations, approved by shareholders.
Ordinary equity shares
2025
2024
Cents per share
$million
Cents per share
$million
2024/2023 final dividend declared and paid during the year
28
670
21
551
2025/2024 interim dividend declared and paid during the year
12
284
9
229
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. Accordingly, the final ordinary equity share dividends set out above relate to the
respective prior years.
2025 recommended final ordinary equity share dividend
The 2025 final ordinary equity share dividend recommended by the Board is 49 cents per share. The financial statements
for the year ended 31 December 2025 do not reflect this dividend as this will be accounted for in shareholders’ equity
as an appropriation of retained profits in the year ending 31 December 2026.
The dividend will be paid in either pounds sterling, Hong Kong dollars or US dollars on 14 May 2026 to shareholders
on the UK and HK register of members at the close of business in the UK on 20 March 2026.
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:
7.014 per cent preference shares of $5 each
26
53
Floating rate preference shares of $5 each
1
73
54
99
107
Additional Tier 1 securities: fixed rate resetting perpetual subordinated contingent convertible securities
428
350
527
457
1 Floating rate is based on Secured Overnight Financing Rate (SOFR), average rate paid for floating preference shares is 9.73% (2024: 7.21%).
Annual Report 2025 | Standard Chartered 351
Financial statements
12. Earnings per ordinary share
Accounting policy
The Group also measures earnings per share on an underlying basis. This differs from earnings defined in IAS 33 Earnings
per share. Underlying earnings is profit/(loss) attributable to ordinary shareholders adjusted for profits or losses of a capital
nature; amounts consequent to investment transactions driven by strategic intent; and other infrequent and/or exceptional
transactions that are significant or material in the context of the Group’s normal business earnings for the year.
The table below provides the basis of underlying earnings.
2025 2024
$million $million
Profit for the year attributable to equity holders
5,097
4,042
Non-controlling interest
(12)
8
Dividend payable on preference shares and AT1 classified as equity
(527)
(457)
Profit for the year attributable to ordinary shareholders
4,558
3,593
Items normalised
1
:
Restructuring
320
285
FFG
531
156
DVA
31
24
Net loss on sale of businesses
10
232
Other items
45
100
Tax on normalised items
(135)
(114)
Underlying profit attributable to ordinary shareholders
5,360
4,276
Basic – weighted average number of shares (millions)
2,333
2,543
Diluted – weighted average number of shares (millions)
2,404
2,610
Basic earnings per ordinary share (cents)
195.4
141.3
Diluted earnings per ordinary share (cents)
189.6
137.7
Underlying basic earnings per ordinary share (cents)
229.7
168.1
Underlying diluted earnings per ordinary share (cents)
223.0
163.8
1 Refer note 2 segmental information for normalised items.
The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the basic
weighted average number of shares excluding treasury shares held in employees benefit trust. When calculating diluted
earnings per share, the weighted average number of shares in issue is adjusted for the effects of all expected dilutive potential
ordinary shares held in respect of Standard Chartered PLC totalling 58 million (2024: 59 million). The total number of share
options outstanding, under schemes considered to be potentially dilutive, was 13 million (2024: 7 million). These options have
strike prices ranging from $4.94 to $14.93. Of the total number of employee share options and share awards at 31 December
2025 there were nil share options and share awards which were anti-dilutive.
The 210 million decrease (2024: 235 million decrease) in the basic weighted average number of shares is primarily due to the
impact of the share buyback programmes completed in the year.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025352
13. 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
Annual Report 2025 | Standard Chartered 353
Financial statements
13. Financial instruments continued
Accounting policy continued
The Group’s business model assessment is as follows:
Business Business
model
objective
Characteristics
Businesses
Products
Hold to Intent is to
•
Providing financing and originating
•
Global Banking
•
Loans and
collect originate financial assets to earn interest income as
•
Transaction
advances
assets and hold primary income stream Banking
•
Debt securities
them to maturity,
•
Performing credit risk management
•
Retail Lending
collecting the 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
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 .
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025354
Accounting policy continued
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.
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 .
Annual Report 2025 | Standard Chartered 355
Financial statements
13. Financial instruments continued
Accounting policy continued
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.
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 statements
Notes to the financial statements
Standard Chartered | Annual Report 2025356
Accounting policy continued
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.
Annual Report 2025 | Standard Chartered 357
Financial statements
13. Financial instruments continued
The Group’s classification of its financial assets and liabilities is summarised in the following tables.
Assets at fair value
Non-trading
mandatorily Designated
Fair value
Total Assets
Derivatives at fair value
at fair value
through other
financial held at
held for through
through
comprehensive assets at amortised
Trading hedging profit or loss
profit or loss
income fair value cost Total
Assets
Notes
$million $million $million
$million
$million $million $million $million
Cash and balances at central banks
1
–
–
–
–
–
–
77,746
77,746
Financial assets held at fair value through profit or
loss
Loans and advances to banks
2
2,984
–
–
–
–
2,984
–
2,984
Loans and advances to customers
2
12,152
–
203
–
–
12,355
–
12,355
Reverse repurchase agreements and other similar
secured lending
16
–
–
84,130
–
–
84,130
–
84,130
Debt securities, alternative tier one and other
eligible bills
86,531
–
130
43
–
86,704
–
86,704
Equity shares
8,946
–
138
–
–
9,084
–
9,084
110,613
–
84,601
43
–
195,257
–
195,257
Derivative financial instruments
14
64,023
1,759
–
–
–
65,782
–
65,782
Loans and advances to banks
2,3
15
–
–
–
–
–
–
43,901
43,901
Of which – reverse repurchase agreements and
other similar secured lending
16
–
–
–
–
–
–
3,724
3,724
Loans and advances to customers
2
15
–
–
–
–
–
–
286,788
286,788
Of which – reverse repurchase agreements and
other similar secured lending
16
–
–
–
–
–
–
8,242
8,242
Investment securities
Debt securities, alternative tier one and other
eligible bills
–
–
–
–
108,503
108,503
57,250
165,753
Equity shares
–
–
–
–
1,203
1,203
–
1,203
–
–
–
–
109,706
109,706
57,250
166,956
Other assets
20
–
–
36,770
36,770
Assets held for sale
21
–
–
–
–
–
–
1,042
1,042
Total at 31 December 2025
174,636
1,759
84,601
43
109,706
370,745
503,497
874,242
Cash and balances at central banks
1
–
63,447
63,447
Financial assets held at fair value through profit or loss
Loans and advances to banks
2
2,213
–
–
–
–
2,213
–
2,213
Loans and advances to customers
2
6,912
–
172
–
–
7,084
–
7,084
Reverse repurchase agreements and other similar
secured lending
16
336
–
85,859
–
–
86,195
–
86,195
Debt securities, alternative tier one and other
eligible bills
76,329
–
140
70
–
76,539
–
76,539
Equity shares
5,285
–
201
–
–
5,486
–
5,486
91,075
–
86,372
70
–
177,517
–
177,517
Derivative financial instruments
14
78,906
2,566
–
–
–
81,472
–
81,472
Loans and advances to banks
2,3
15
–
–
–
–
–
–
43,593
43,593
Of which – reverse repurchase agreements and
other similar secured lending
16
–
–
–
–
–
–
2,946
2,946
Loans and advances to customers
2
15
–
–
–
–
–
–
281,032
281,032
Of which – reverse repurchase agreements and
other similar secured lending
–
–
–
–
–
–
9,660
9,660
Investment securities
Debt securities, alternative tier one and other
eligible bills
–
–
–
–
88,425
88,425
55,137
143,562
Equity shares
–
–
–
–
994
994
–
994
–
–
–
–
89,419
89,419
55,137
144,556
Other assets
20
–
–
34,585
34,585
Assets held for sale
21
–
–
–
5
–
5
884
889
Total at 31 December 2024
169,981
2,566
86,372
75
89,419
348,413
478,678
827,091
1 Comprises cash held at central banks in restricted accounts of $11,630 million (31 December 2024: $7,799 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 Further analysed in Risk review and Capital review (pages 218 to 308).
3 Loans and advances to banks includes amounts due on demand from banks and other central banks.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025358
Liabilities at fair value
Designated at fair Total financial
Derivatives held value through liabilities at fair Amortised
Trading for hedging profit or loss value cost Total
Liabilities
Notes
$million $million $million $million $million $million
Financial liabilities held at fair
value through profit or loss
Deposits by banks
–
–
2,328
2,328
–
2,328
Customer accounts
–
–
19,414
19,414
–
19,414
Repurchase agreements and
other similar secured
borrowing
16
–
–
36,307
36,307
–
36,307
Debt securities in issue
22
–
–
16,009
16,009
–
16,009
Short positions
15,539
–
–
15,539
–
15,539
15,539
–
74,058
89,597
–
89,597
Derivative financial instruments
14
67,046
1,158
–
68,204
–
68,204
Deposits by banks
–
–
–
–
30,846
30,846
Customer accounts
–
–
–
–
530,161
530,161
Repurchase agreements and
other similar secured borrowing
16
–
–
–
–
7,757
7,757
Debt securities in issue
22
–
–
–
–
72,858
72,858
Other liabilities
23
–
–
–
–
45,788
45,788
Subordinated liabilities and
other borrowed funds
27
–
–
–
–
8,834
8,834
Liabilities included in disposal
groups held for sale
21
–
–
–
–
908
908
Total at 31 December 2025
82,585
1,158
74,058
157,801
697,152
854,953
Financial liabilities held at fair
value through profit or loss
Deposits by banks
–
–
1,893
1,893
–
1,893
Customer accounts
–
–
21,772
21,772
–
21,772
Repurchase agreements and
other similar secured
borrowing
16
925
–
32,614
33,539
–
33,539
Debt securities in issue
22
1
–
13,730
13,731
–
13,731
Short positions
14,527
–
–
14,527
–
14,527
15,453
–
70,009
85,462
–
85,462
Derivative financial instruments
14
80,037
2,027
–
82,064
–
82,064
Deposits by banks
–
–
–
–
25,400
25,400
Customer accounts
–
–
–
–
464,489
464,489
Repurchase agreements and
other similar secured borrowing
16
–
–
–
–
12,132
12,132
Debt securities in issue
22
–
–
–
–
64,609
64,609
Other liabilities
23
–
–
–
–
44,047
44,047
Subordinated liabilities and
other borrowed funds
27
–
–
–
–
10,382
10,382
Liabilities included in disposal
groups held for sale
21
–
–
–
–
360
360
Total at 31 December 2024
95,490
2,027
70,009
167,526
621,419
788,945
Annual Report 2025 | Standard Chartered 359
Financial statements
13. 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.
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
At 31 December 2025
Derivative financial instruments
78,518
(12,736)
65,782
(14,168)
(44,712)
6,902
Reverse repurchase agreements and other
similar secured lending
160,964
(64,868)
96,096
(96,096)
–
–
Total Assets
239,482
(77,604)
161,878
(110,264)
(44,712)
6,902
Derivative financial instruments
80,923
(12,719)
68,204
(12,868)
(44,712)
10,624
Repurchase agreements and other similar
secured borrowing
108,932
(64,868)
44,064
(44,064)
–
–
Total Liabilities
189,855
(77,587)
112,268
(56,932)
(44,712)
10,624
At 31 December 2024
Derivative financial instruments
97,902
(16,430)
81,472
(15,005)
(60,280)
6,187
Reverse repurchase agreements and other
similar secured lending
137,115
(38,314)
98,801
(98,801)
–
–
Total Assets
235,017
(54,744)
180,273
(113,806)
(60,280)
6,187
Derivative financial instruments
98,494
(16,430)
82,064
(11,046)
(60,280)
10,738
Repurchase agreements and other similar
secured borrowing
83,985
(38,314)
45,671
(45,671)
–
–
Total Liabilities
182,479
(54,744)
127,735
(56,717)
(60,280)
10,738
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 statements
Notes to the financial statements
Standard Chartered | Annual Report 2025360
Financial liabilities designated at fair value through profit or loss
2025 2024
$million $million
Carrying Balance aggregate fair value
74,058
70,009
Amount Contractually obliged to repay at maturity
73,843
70,166
Difference between aggregate fair value and contractually obliged to repay at maturity
215
(157)
Cumulative change in Fair Value accredited to Credit Risk Difference
(433)
(276)
The net fair value loss on financial liabilities designated at fair value through profit or loss was $3,476 million for the year
(31 December 2024: net loss of $3,252 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.
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.
Annual Report 2025 | Standard Chartered 361
Financial statements
13. Financial instruments continued
Valuation techniques
Refer to the fair value hierarchy explanation – Level 1, 2 and 3 (page 364)
• 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.
– 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, its 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
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025362
– 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.
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
117
6
123
115
2
117
Credit valuation adjustment
134
(20)
114
119
15
134
Debit valuation adjustment
(105)
30
(75)
(129)
24
(105)
Model valuation adjustment
5
(2)
3
4
1
5
Funding valuation adjustment
41
(9)
32
33
8
41
Other fair value adjustments
26
22
48
25
1
26
Total
218
27
245
167
51
218
Income deferrals
Day 1 and other deferrals
138
9
147
109
29
138
Total
138
9
147
109
29
138
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.
Annual Report 2025 | Standard Chartered 363
Financial statements
13. Financial instruments continued
• 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.
• 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
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.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025364
The following tables show the classification of financial instruments held at fair value into the valuation hierarchy:
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
–
2,685
299
2,984
–
2,213
–
2,213
Loans and advances to customers
–
8,891
3,464
12,355
–
5,147
1,937
7,084
Reverse repurchase agreements and other similar secured
lending
–
80,446
3,684
84,130
19
82,937
3,239
86,195
Debt securities and other eligible bills
38,015
45,365
3,324
86,704
32,331
42,615
1,593
76,539
Of which:
Issued by central banks & governments
35,078
21,875
–
56,953
30,278
13,355
9
43,642
Issued by corporates other than financial institutions
1
71
5,531
232
5,834
7
4,860
399
5,266
Issued by financial institutions
1
2,866
17,959
3,092
23,917
2,046
24,400
1,185
27,631
Equity shares
6,319
2,455
310
9,084
5,287
8
191
5,486
Derivative financial instruments
766
64,926
90
65,782
386
80,958
128
81,472
Of which:
Foreign exchange
132
55,776
35
55,943
140
72,870
37
73,047
Interest rate
39
6,143
46
6,228
27
6,296
80
6,403
Credit
–
488
5
493
–
388
9
397
Equity and stock index options
–
332
4
336
–
349
2
351
Commodity
595
2,187
–
2,782
219
1,055
–
1,274
Investment securities
Debt securities and other eligible bills
67,058
41,445
–
108,503
50,249
38,176
–
88,425
Of which:
Issued by central banks & governments
53,830
22,336
–
76,166
41,395
16,916
–
58,311
Issued by corporates other than financial institutions
1
–
438
–
438
–
490
–
490
Issued by financial institutions
1
13,228
18,671
–
31,899
8,854
20,770
–
29,624
Equity shares
34
2
1,167
1,203
27
2
965
994
Total assets at 31 December
2
112,192
246,215
12,338
370,745
88,299
252,056
8,053
348,408
Liabilities
Financial instruments held at fair value through profit or loss
Deposits by banks
–
2,059
269
2,328
–
1,522
371
1,893
Customer accounts
–
15,936
3,478
19,414
–
19,058
2,714
21,772
Repurchase agreements and other similar secured borrowing
–
36,307
–
36,307
–
33,539
–
33,539
Debt securities in issue
–
14,925
1,084
16,009
–
12,317
1,414
13,731
Short positions
8,674
6,789
76
15,539
8,789
5,558
180
14,527
Derivative financial instruments
380
67,598
226
68,204
419
81,387
258
82,064
Of which:
Foreign exchange
155
56,427
21
56,603
183
69,684
8
69,875
Interest rate
83
6,464
22
6,569
14
8,586
23
8,623
Credit
–
1,958
128
2,086
–
2,131
189
2,320
Equity and stock index options
–
428
54
482
–
157
37
194
Commodity
142
2,321
1
2,464
222
829
1
1,052
Total liabilities at 31 December
9,054
143,614
5,133
157,801
9,208
153,381
4,937
167,526
1 Includes covered bonds of $3,045 million (2024: $3,727 million), securities issued by Multilateral Development Banks/International Organisations of $16,039 million
(2024: $10,679 million), and State-owned agencies and development banks of $27,449 million(2024: $16,759 million).
2 The table above does not include held for sale assets of nil million (2024: $5 million) .These are reported in Note 21 together with their fair value hierarchy.
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 $327 million (2024: $739 million) and $314 million (2024: $320 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.
Annual Report 2025 | Standard Chartered 365
Financial statements
13. Financial instruments continued
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.
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
77,746
–
77,746
–
77,746
63,447
–
63,447
–
63,447
Loans and advances to banks
43,901
–
43,834
83
43,917
43,593
–
43,430
165
43,595
of which – reverse repurchase
agreements and other similar
secured lending
3,724
–
3,733
–
3,733
2,946
–
2,948
–
2,948
Loans and advances to customers
286,788
–
28,759
257,093
285,852
281,032
–
40,582
238,986
279,568
of which – reverse repurchase
agreements and other similar
secured lending
8,242
–
8,242
–
8,242
9,660
–
9,618
42
9,660
Investment securities
2
57,250
–
56,427
–
56,427
55,137
–
53,050
24
53,074
Other assets
1
36,770
–
36,770
–
36,770
34,585
–
34,585
–
34,585
Assets held for sale
1,042
74
178
790
1,042
884
58
353
473
884
Total as at 31 December
503,497
74
243,714
257,966
501,754
478,678
58
235,447
239,648
475,153
Liabilities
Deposits by banks
30,846
–
30,846
–
30,846
25,400
–
25,238
–
25,238
Customer accounts
530,161
–
526,569
–
526,569
464,489
–
461,549
–
461,549
Repurchase agreements and other
similar secured borrowing
7,757
–
7,757
–
7,757
12,132
–
12,133
–
12,133
Debt securities in issue
72,858
36,578
36,392
–
72,970
64,609
32,209
32,181
–
64,390
Subordinated liabilities and other
borrowed funds
8,834
8,045
607
–
8,652
10,382
9,599
429
–
10,028
Other liabilities¹
45,788
–
45,788
–
45,788
44,047
–
44,047
–
44,047
Liabilities held for sale
908
147
761
–
908
360
89
271
–
360
Total as at 31 December
697,152
44,770
648,720
–
693,490
621,419
41,897
575,848
–
617,745
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 $27,813 million at 31 December 2025 (31 December 2024: $23,150 million).
Loans and advances to customers by client segment
1
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 Stage 3 stage 2 Total Stage 3 stage 2
$million $million $million $million
$million
Total
$million $million $million $million
$million
Total
Corporate
& Investment
Banking
1,987
140,193
142,180
1,974
140,463
142,437
1,298
137,006
138,304
1,174
137,234
138,408
Wealth &
Retail Banking
877
126,100
126,977
875
125,023
125,898
858
118,390
119,248
858
116,823
117,681
Ventures
13
2,646
2,659
13
2,646
2,659
1
1,388
1,389
–
1,388
1,388
Central &
other items
–
14,972
14,972
–
14,858
14,858
98
21,993
22,091
98
21,993
22,091
Total as at
31 December
2,877
283,911
286,788
2,862
282,990
285,852
2,255
278,777
281,032
2,130
277,438
279,568
1 Loans and advances includes reverse repurchase agreements and other similar secured lending: carrying value $8,242 million and fair value $8,243 million
(31 December 2024: $9,660 million and $9,660 million respectively) .
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025366
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:
Value as at
31 December 2025
Assets Liabilities Weighted
Instrument $million $million
Principal valuation technique
Significant unobservable inputs
Range
1
average
2
Loans and advances
299
–
Discounted cash flows
Price/yield
4.4% – 4.9%
4.6%
to banks
Loans and advances
3,464
–
Discounted cash flows
Price/yield
2.1% – 61.3%
8.9%
to customers
3
Recovery rate
99.98% – 99.99%
99.99%
Comparable pricing/yield
Price
29.4% – 100%
93.2%
Reverse repurchase
3,684
–
Discounted cash flows
Repo curve
0.7% – 8.1%
5.4%
agreements and other similar
Price/yield
4.1% – 25.1%
9.6%
secured lending
Debt securities, alternative
3,324
–
Discounted cash flows
Price/yield
2.6% – 53.8%
7.7%
tier one and other eligible
securities
Equity shares (includes
1,477
–
Comparable pricing/yield
4
Price
N/A
N/A
private equity investments)
Discounted cash flows
Discount rates
8.2% – 25.9%
10.5%
Option pricing model
Equity value based on
5.4x – 23.0x
11.54x
EV/Revenue multiples
Equity value based on
3.2x – 3.2x
3.2x
EV/EBITDA multiples
Equity value based on
40.0% – 40.0%
40.0%
volatility
Derivative financial
instruments of which:
Foreign exchange
35
21
Option pricing model
Foreign exchange option
0.4% – 44.6%
33.0%
implied volatility
Discounted cash flows
Interest rate curves
0.3% – 36.0%
14.3%
Foreign exchange curves
1.3% – 3.9%
1.7%
Commodity
–
1
Discounted cash flows
Commodity prices
$0.2 – $341.2
$62.4
Internal pricing model
CM-CM correlation
59.7% – 97.4%
78.6%
Interest rate
46
22
Discounted cash flows
Interest rate curves
3.5% – 36.0%
9.8%
Credit
5
128
Discounted cash flows
Credit spreads
0.9% – 1.0%
0.9%
Price/yield
2.7% – 25.1%
7.3%
Internal pricing model
Bond option implied
5.0% – 13.0%
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
–
269
Discounted cash flows
Price/Yield
4.3% – 6.1%
5.7%
Customer accounts
–
3,478
Internal pricing model
Equity-Equity correlation
50.8% – 100%
77.6%
Equity-FX correlation
(26.9)% – 46.8%
6.7%
Price/yield
2.6% – 20.8%
8.7%
Debt securities in issue
–
1,084
Discounted cash flows
Price/yield
7.4% – 19.0%
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
5.0% – 13.0%
10.8%
volatility
Short positions
–
76
Discounted cash flows
Price/yield
7.13% – 7.13%
7.1%
Total
12,338
5,133
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.
Annual Report 2025 | Standard Chartered 367
Financial statements
13. Financial instruments continued
Value as at
31 December 2024
Assets Liabilities Weighted
Instrument $million $million
Principal valuation technique
Significant unobservable inputs
Range
1
average
2
Loans and advances
1,937
–
Discounted cash flows
Price/yield
1.0% – 26.1%
7.7%
to customers
3
Recovery rate
93.2% – 95.6%
95.1%
Comparable pricing/yield
Price
1.2% – 100%
89.9%
Reverse repurchase
3,239
–
Discounted cash flows
Repo curve
2.0% – 7.6%
6.2%
agreements and other
similar secured lending
Price/yield
2.3% – 10.5%
6.4%
Debt securities, alternative
1,584
–
Discounted cash flows
Price/yield
0.7% – 15.3%
6.9%
tier one and other eligible
Recovery rate
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
1,156
–
Comparable pricing/yield
4
Price
N/A
N/A
private equity investments)
Discounted cash flows
Discount rates
8.3% – 20.4%
10.1%
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
30.2% – 50.0%
30.5%
volatility
Derivative financial
instruments of which:
Foreign exchange
37
8
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%
Commodity
–
1
Discounted cash flows
Commodity prices
$383.0 – $391.0
$387.0
CM-CM correlation
73.7% – 97.9%
86.0%
Interest rate
80
23
Discounted cash flows
Interest rate curves
3.5% – 43.9%
5.1%
Option pricing model
Bond option implied
2.3% – 4.7%
3.5%
volatility
Credit
9
189
Discounted cash flows
Credit spreads
0.1% – 1.9%
0.9%
Price/yield
4.8% – 6.6%
5.5%
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
–
371
Discounted cash flows
Credit spreads
0.2% – 3.5%
1.5%
Customer accounts
–
2,714
Internal pricing model
Equity-Equity correlation
44.9% – 100%
80.0%
Equity-FX correlation
(36.4)% – 48.9%
5.0%
Discounted cash flows
Interest rate curves
1.4% – 4.4%
4.0%
Price/yield
0.7% – 13.0%
8.5%
Debt securities in issue
–
1,414
Discounted cash flows
Credit spreads
0.05% – 2.0%
0.8%
Price/yield
6.2% – 14.8%
12.7%
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%
12.5%
volatility
Short position
–
180
Discounted cash flows
Price/yield
5.9% – 12.7%
6.3%
Total
8,053
4,937
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.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025368
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.
Annual Report 2025 | Standard Chartered 369
Financial statements
13. Financial instruments continued
Level 3 movement tables – financial assets
The table below analyses movements in Level 3 financial assets carried at fair value.
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 Other financial and other Equity
banks customers lending eligible bills shares Assets instruments eligible bills shares Total
Assets $million $million $million $million $million $million $million $million $million $million
At 1 January 2025
–
1,937
3,239
1,593
191
–
128
–
965
8,053
Total gains/(losses) recognised
in income statement
–
70
(35)
123
(12)
–
(14)
–
–
132
Net trading income
–
70
(35)
123
(12)
–
(14)
–
–
132
Other operating income
–
–
–
–
–
–
–
–
–
–
Total gains recognised in
other comprehensive income (OCI)
–
–
–
–
–
–
–
–
321
321
Fair value through OCI reserve
–
–
–
–
–
–
–
–
316
316
Exchange difference
–
–
–
–
–
–
–
–
5
5
Purchases
299
3,002
10,555
1,980
169
–
162
–
31
16,198
Sales
–
(1,156)
(9,021)
(1,007)
(31)
–
(128)
–
(150)
(11,493)
Settlements
–
(184)
(1,054)
(6)
–
–
(36)
–
–
(1,280)
Transfers out
1
–
(803)
–
(280)
(7)
–
(23)
–
–
(1,113)
Transfers in
2
–
598
–
921
–
–
1
–
–
1,520
At 31 December 2025
299
3,464
3,684
3,324
310
–
90
–
1,167
12,338
Recognised in the income statement
3
–
(9)
(3)
5
(29)
–
–
–
–
(36)
At 1 January 2024
–
1,960
2,363
1,262
184
6
80
72
787
6,714
Total (losses)/gains recognised
in income statement
(1)
8
73
(114)
(15)
–
(57)
–
–
(106)
Net trading income
(1)
8
73
(56)
(15)
–
(57)
–
–
(48)
Other operating income
–
–
–
(58)
–
–
–
–
–
(58)
Total (losses)/gains recognised
in other comprehensive income (OCI)
–
–
–
–
–
–
–
(11)
50
39
Fair value through OCI reserve
–
–
–
–
–
–
–
–
74
74
Exchange difference
–
–
–
–
–
–
–
(11)
(24)
(35)
Purchases
–
1,853
6,161
1,337
24
–
227
–
145
9,747
Sales
–
(2,062)
(4,716)
(907)
(2)
–
(160)
–
(19)
(7,866)
Settlements
(7)
(42)
(782)
–
–
–
–
–
–
(831)
Transfers out
1
(13)
(263)
–
(1)
–
(6)
(1)
(61)
(2)
(347)
Transfers in
2
21
483
140
16
–
–
39
–
4
703
At 31 December 2024
–
1,937
3,239
1,593
191
–
128
–
965
8,053
Recognised in the income statement
3
–
7
1
7
(13)
–
(9)
–
–
(7)
1 Transfers out includes loans and advances, debt securities, alternative tier one and other eligible bills, equity shares, other assets 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, repurchase agreements, 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.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025370
Level 3 movement tables – financial liabilities
Debt Derivative
Deposits Customer securities financial Short Other
by banks accounts in issue instruments positions liabilities Total
$million $million $million $million $million $million $million
At 1 January 2025
371
2,714
1,414
258
180
–
4,937
Total losses/(gains)
recognised in income
statement – net
trading income
98
(269)
60
8
3
–
(100)
Issues
298
5,410
2,114
538
–
–
8,360
Settlements
(538)
(3,790)
(2,462)
(566)
(107)
–
(7,463)
Transfers out
1
–
(650)
(58)
(30)
–
–
(738)
Transfers in
2
40
63
16
18
–
–
137
At 31 December 2025
269
3,478
1,084
226
76
–
5,133
Recognised in the income
statement
3
3
2
2
(9)
–
–
(2)
At 1 January 2024
334
1,278
1,041
196
103
8
2,960
Total losses/(gains)
recognised in income
statement – net
trading income
49
(27)
48
(6)
3
(8)
59
Issues
388
3,068
4,244
507
177
–
8,384
Settlements
(400)
(1,627)
(2,795)
(438)
(103)
–
(5,363)
Transfers out
1
–
(26)
(1,194)
(7)
–
–
(1,227)
Transfers in
2
–
48
70
6
–
–
124
At 31 December 2024
371
2,714
1,414
258
180
–
4,937
Recognised in the income
statement
3
29
5
2
(13)
–
–
23
1 Transfers out during the year primarily relate 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 relate 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 .
Annual Report 2025 | Standard Chartered 371
Financial statements
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.
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
3,763
3,854
3,650
–
–
–
Reverse Repurchase agreements
and other similar secured lending
3,684
3,782
3,598
–
–
–
Debt securities, alternative tier one
and other eligible bills
3,324
3,384
3,267
–
–
–
Equity shares
310
343
277
1,167
1,284
1,050
Derivative financial instruments
(136)
(111)
(161)
–
–
–
Customer accounts
(3,478)
(3,395)
(3,566)
–
–
–
Deposits by banks
(269)
(257)
(282)
–
–
–
Short positions
(76)
(75)
(77)
–
–
–
Debt securities in issue
(1,084)
(1,007)
(1,161)
–
–
–
At 31 December 2025
6,038
6,518
5,545
1,167
1,284
1,050
Financial instruments held at fair value
Loans and advances
1,937
1,985
1,862
–
–
–
Reverse Repurchase agreements
and other similar secured lending
3,239
3,339
3,138
–
–
–
Debt securities, alternative tier one
and other eligible bills
1,593
1,643
1,542
–
–
–
Equity shares
191
210
172
965
1,032
888
Derivative financial instruments
(130)
(115)
(147)
–
–
–
Customer accounts
(2,714)
(2,540)
(2,883)
–
–
–
Deposits by banks
(371)
(371)
(371)
–
–
–
Short positions
(180)
(178)
(182)
–
–
–
Debt securities in issue
(1,414)
(1,352)
(1,476)
–
–
–
At 31 December 2024
2,151
2,621
1,655
965
1,032
888
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
480
470
(493)
(496)
Fair value through other comprehensive income
117
67
(117)
(77)
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025372
14. 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.
Annual Report 2025 | Standard Chartered 373
Financial statements
14. Derivative financial instruments continued
Accounting policy 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.
2025
2024
Notional Notional
principal principal
amounts Assets Liabilities amounts Assets Liabilities
Derivatives $million $million $million $million $million $million
Foreign exchange derivative contracts¹:
Forward foreign exchange contracts
5,793,024
42,581
42,554
4,923,991
54,913
51,128
Currency swaps and options
1,592,764
13,323
13,965
1,377,308
18,104
18,720
7,385,788
55,904
56,519
6,301,299
73,017
69,848
Interest rate derivative contracts:
Swaps
9,371,325
17,290
18,294
6,267,261
20,600
22,282
Forward rate agreements and options
325,419
1,674
994
294,705
2,233
2,771
9,696,744
18,964
19,288
6,561,966
22,833
25,053
Exchange traded futures and options
640,718
39
84
383,528
30
27
Credit derivative contracts
81,800
493
2,086
227,675
397
2,320
Equity and stock index options
22,078
336
482
10,678
351
194
Commodity derivative contracts
185,432
2,782
2,464
142,393
1,274
1,052
Gross total derivatives
18,012,560
78,518
80,923
13,627,539
97,902
98,494
Offset
–
(12,736)
(12,719)
–
(16,430)
(16,430)
Total derivatives
18,012,560
65,782
68,204
13,627,539
81,472
82,064
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 277) .
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025374
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.
Included in the table below are derivatives held for hedging purposes as follows:
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
62,630
717
1,001
63,840
763
1,679
Currency swaps
1,954
92
–
1,035
–
56
64,584
809
1,001
64,875
763
1,735
Derivatives designated
as cash flow hedges:
Interest rate swaps
63,247
300
78
49,309
165
282
Forward foreign exchange contracts
10,268
124
34
9,193
609
1
Currency swaps
3,904
86
22
14,305
729
2
77,419
510
134
72,807
1,503
285
Derivatives designated as net
investment hedges:
Forward foreign exchange contracts
17,155
440
23
14,137
300
7
Total derivatives held for hedging
159,158
1,759
1,158
151,819
2,566
2,027
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 13). 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.
Annual Report 2025 | Standard Chartered 375
Financial statements
14. Derivative financial instruments continued
Hedging instruments and ineffectiveness
Change in fair
Carrying Amount value used to Ineffectiveness
calculate hedge recognised in
Notional Asset Liability
ineffectiveness
2
profit or loss
Interest rate
1
$million $million $million $million $million
Interest rate swaps – debt securities/subordinated
notes issued
42,219
557
939
839
2
Interest rate swaps – loans and advances to customers
531
–
5
(8)
–
Interest rate swaps – debt securities and other eligible bills
19,880
160
57
(333)
(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
64,584
809
1,001
639
(7)
Interest rate swaps – debt securities/subordinated
notes issued
46,832
283
1,643
46
2
Interest rate swaps – loans and advances to customers
1,334
10
12
(5)
–
Interest rate swaps – debt securities and other eligible bills
15,674
470
24
142
2
Interest and currency risk
1
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
64,875
763
1,735
121
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
Accumulated amount of fair value
Cumulative
hedge adjustments included
balance of fair
Carrying Amount
in the carrying amount
Change in fair
value adjustments
value used to
from de-
calculate hedge
designated hedge
Asset Liability Asset Liability
ineffectiveness
1
relationships
2
$million $million $million $million
$million
$million
Debt securities /subordinated notes issued
–
43,968
–
546
(978)
252
Debt securities and other eligible bills
19,834
–
(57)
–
324
82
Loans and advances to customers
536
–
5
–
8
–
Total as at 31 December 2025
20,370
43,968
(52)
546
(646)
334
Debt securities /subordinated notes issued
–
49,616
–
1,485
7
178
Debt securities and other eligible bills
15,183
–
(353)
–
(130)
235
Loans and advances to customers
1,330
–
(4)
–
5
4
Total as at 31 December 2024
16,513
49,616
(357)
1,485
(118)
417
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
639
121
Change in fair value of hedged risks attributable to hedged items
(646)
(118)
Net ineffectiveness (loss)/gain to net trading income
(7)
3
Amortisation gain to net interest income
27
153
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025376
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
Ineffectiveness
Carrying Amount Change in fair gain/(loss)
value used to recognised in
calculate hedge Gain recognised net trading
Notional Asset Liability
ineffectiveness
1
in OCI income
$million $million $million $million $million $million
Interest rate risk
Interest rate swaps
63,247
300
78
412
404
8
Currency risk
Forward foreign exchange contract
10,268
124
34
(5)
(4)
(1)
Cross currency swaps
3,904
86
22
(377)
(379)
2
Total as at 31 December 2025
77,419
510
134
30
21
9
Interest rate risk
Interest rate swaps
49,309
165
282
(131)
(125)
(6)
Currency risk
Forward foreign exchange contract
9,193
609
1
45
45
–
Cross currency swaps
14,305
729
2
650
648
2
Total as at 31 December 2024
72,807
1,503
285
564
568
(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 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
ineffectiveness
1
reserve relationships
ineffectiveness
1
reserve relationships
$million $million $million $million $million $million
Customer accounts
122
(1)
78
(199)
(38)
104
Debt securities and other eligible bills
122
4
–
(354)
(10)
(5)
Loans and advances to customers
(379)
243
61
124
(27)
(7)
Intragroup lending currency hedge
38
2
–
(55)
(2)
–
Intragroup borrowing currency hedge
76
–
–
(84)
4
–
Total as at 31 December
(21)
248
139
(568)
(73)
92
1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.
Annual Report 2025 | Standard Chartered 377
Financial statements
14. 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
4
91
Gain recognised in other comprehensive income on effective portion of changes in fair value
of hedging instruments
21
568
Loss/(Gain) reclassified to income statement when hedged item affected net profit
347
(669)
Taxation charge relating to cash flow hedges
(57)
14
Cash flow hedge reserve balance as at 31 December
315
4
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.
Changes in the
Carrying Amount
Change in fair
value of the
value used to
hedging Ineffectiveness Amount
calculate hedge
instrument recognised in reclassified from
Derivative forward Notional Asset Liability
ineffectiveness
2
recognised in OCI profit or loss reserves to income
currency contracts
1
$million $million $million
$million
$million $million $million
As at 31 December 2025
17,155
440
23
129
129
–
–
As at 31 December 2024
14,137
300
7
678
678
–
–
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 fair 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
(129)
417
–
(678)
293
–
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.
Impact of net investment hedges on other comprehensive income
2025 2024
$million $million
Gains recognised in other comprehensive income
129
678
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025378
Maturity of hedging instruments
2025
2024
More than More than
one month one month
Less than and less than One to five More than Less than and less than One to five More than
Fair value hedges one month one year years five years one month one year years five years
Interest rate swap
Notional
$million
1,820
9,387
35,179
16,244
2,763
11,260
32,030
17,787
Cross currency swap
Notional
$million
–
–
1,954
–
–
–
1,035
–
Average fixed interest rate
(to USD) (%)
EUR
–
–
2.26
–
–
–
2.40
–
Average exchange rate
EUR/USD
–
–
0.89
–
–
–
0.91
–
Cash flow hedges
Interest rate swap
Notional
$million
1,544
17,021
41,054
3,628
2,428
15,589
25,943
5,349
Average fixed interest rate
(%)
USD
4.09
4.09
3.61
3.69
5.09
4.62
4.05
3.74
Cross currency swap
Notional
$million
622
2,568
714
–
880
12,232
1,193
–
Average fixed interest rate
HKD
4.11
3.14
0.21
–
–
4.07
0.21
–
(%)
KRO
2.62
2.44
–
–
–
2.85
–
–
JPY/HKD
–
–
–
–
–
(0.05)
–
–
TWO
1.07
1.35
1.38
–
0.53
1.04
–
–
CNO
–
–
–
–
2.45
1.54
–
–
JPY
–
–
–
–
0.01
0.08
–
–
Average exchange rate
HKD/USD
7.77
7.78
7.85
–
–
7.78
7.85
–
KRO/USD
1,454.00
1,446.78
1,300.90
–
–
1,386.94
1,300.90
–
TWO/USD
31.91
29.97
29.42
–
31.83
32.22
–
–
CNO/USD
–
–
–
–
7.18
7.20
–
–
JPY/HKD
–
–
–
–
–
18.12
–
–
Forward foreign exchange
contracts
Notional
$million
1,736
8,236
296
–
2,044
7,149
–
–
Average exchange rate
BRL/USD
–
–
–
–
–
6.54
–
–
HKD/USD
7.77
7.77
7.85
–
–
–
–
JPY/USD
153.02
148.53
–
–
147.38
145.65
–
–
Net investment hedges
Foreign exchange derivatives
Notional
$million
17,126
29
–
–
14,137
–
–
–
Average exchange rate
CNY/USD
7.07
–
–
–
7.13
–
–
–
KRW/USD
1,358.41
–
–
–
1,364.97
–
–
–
HKD/USD
7.77
–
–
–
7.77
–
–
–
INR/USD
86.63
–
–
–
84.07
–
–
–
Annual Report 2025 | Standard Chartered 379
Financial statements
15. Loans and advances to banks and customers
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy.
2025 2024
$million $million
Loans and advances to banks
43,915
43,609
Expected credit loss
(14)
(16)
43,901
43,593
Loans and advances to customers
290,849
285,936
Expected credit loss
(4,061)
(4,904)
286,788
281,032
Total loans and advances to banks and customers
1
330,689
324,625
1 Includes $2.9 billion (31 December 2024: $2.5 billion) of assets pledged as collateral. For more information, please refer to Pillar 3 disclosures.
Analysis of loans and advances to customers by geographies and client segment together with their related impairment
provisions are set out within the Risk review and Capital review (pages 218 to 308).
16. 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
2025 2024
$million $million
Banks
37,412
37,700
Customers
58,684
61,101
96,096
98,801
Of which:
Fair value through profit or loss
84,130
86,195
Banks
33,688
34,754
Customers
50,442
51,441
Held at amortised cost
11,966
12,606
Banks
3,724
2,946
Customers
8,242
9,660
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025380
Under reverse repurchase and securities borrowing arrangements, the Group obtains securities under usual and customary
terms which permit it to repledge or resell the securities to others. Amounts on such terms are:
2025 2024
$million $million
Securities and collateral received (at fair value)
101,260
103,007
Securities and collateral which can be repledged or sold (at fair value)
98,384
102,741
Amounts repledged/transferred to others for financing activities, to satisfy liabilities under sale
and repurchase agreements (at fair value)
18,173
27,708
Repurchase agreements and other similar secured borrowing
2025 2024
$million $million
Banks
8,465
8,669
Customers
35,599
37,002
44,064
45,671
Of which:
Fair value through profit or loss
36,307
33,539
Banks
6,560
7,759
Customers
29,747
25,780
Held at amortised cost
7,757
12,132
Banks
1,905
910
Customers
5,852
11,222
The tables below set out the financial assets provided as collateral for repurchase and other secured borrowing transactions:
Fair value
Fair value
through other
through
comprehensive Amortised Off-balance
profit or loss
income cost sheet Total
$million
$million $million $million $million
On-balance sheet
Debt securities and other eligible bills
6,345
11,272
10,046
–
27,663
Off-balance sheet
Repledged collateral received
–
–
–
18,173
18,173
At 31 December 2025
6,345
11,272
10,046
18,173
45,836
On-balance sheet
Debt securities and other eligible bills
4,698
6,366
7,592
–
18,656
Off-balance sheet
Repledged collateral received
–
–
–
27,708
27,708
At 31 December 2024
4,698
6,366
7,592
27,708
46,364
Annual Report 2025 | Standard Chartered 381
Financial statements
17. 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.
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 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.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025382
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.
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
2,387
252
6,301
8,940
2,429
278
6,168
8,875
Exchange translation differences
32
6
225
263
(42)
(18)
(109)
(169)
Additions
4
1
1,032
1,037
–
1
952
953
Disposals
–
–
(13)
(13)
–
–
(5)
(5)
Impairment
–
–
(121)
1
(121)
–
–
(663)
1,2
(663)
Amounts written off
–
–
(21)
(21)
–
(9)
(42)
(51)
At 31 December
2,423
259
7,403
10,085
2,387
252
6,301
8,940
Provision for amortisation
At 1 January
–
249
2,900
3,149
–
265
2,396
2,661
Exchange translation differences
–
4
115
119
–
(20)
(48)
(68)
Amortisation
–
2
687
689
–
4
695
699
Impairment charge
–
–
(76)
1
(76)
–
–
(102)
1,2
(102)
Disposals
–
–
(6)
(6)
–
–
–
–
Amounts written off
–
–
(21)
(21)
–
–
(41)
(41)
At 31 December
–
255
3,599
3,854
–
249
2,900
3,149
Net book value
2,423
4
3,804
6,231
2,387
3
3,401
5,791
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 $45 million (31 December 2024: $78 million).
2 During 2024, the Group performed a review of its computer software intangibles which were capitalised as at 31 December 2023, and impaired $483 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 $3,331 million
(31 December 2024: $3,331 million), of which $nil was recognised in 2025 (31 December 2024: $nil).
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.
Annual Report 2025 | Standard Chartered 383
Financial statements
17. Goodwill and intangible assets continued
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
1
$million per cent per cent $million per cent per cent
Country CGUs
Asia
1,036
1,014
Hong Kong
358
13.0
1.0
359
13.0
1.1
Taiwan
327
12.2
1.3
316
12.2
1.5
Singapore
351
13.1
2.0
339
13.0
2.3
Africa & Middle East
80
81
Pakistan
31
33.9
2.5
32
35.9
3.3
Bahrain
49
16.1
1.0
49
12.4
0.8
Global CGUs
1,303
1,292
Wealth Management
83
15.1
1.6
83
15.0
1.8
Corporate & Investment Banking
1,220
15.9
2.1
1,209
15.5
2.3
2,419
2,387
1 Excludes other goodwill balances of $4 million.
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.
18. 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 19.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025384
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
1,726
936
2,026
163
4,851
1,741
810
1,864
18
4,433
Exchange translation differences
26
33
39
(1)
97
(41)
(31)
(38)
(4)
(114)
Additions
133
1
187
1
253
56
629
112
1
194
1
213
150
669
Disposals and fully depreciated
assets written off
(29)
2
(54)
2
(54)
(1)
(138)
(61)
2
(37)
2
(13)
(1)
(112)
Transfers to assets held for sale
(43)
–
–
–
(43)
–
–
–
–
–
Other movements
3
(9)
–
–
–
(9)
(25)
–
–
–
(25)
As at 31 December
1,804
1,102
2,264
217
5,387
1,726
936
2,026
163
4,851
Depreciation
Accumulated at 1 January
716
575
1,096
39
2,426
692
535
914
18
2,159
Exchange translation differences
13
30
3
(3)
43
(28)
(15)
(40)
(14)
(97)
Charge for the year
87
114
228
52
481
79
92
220
36
427
Impairment charge
(1)
–
1
–
–
2
–
9
–
11
Attributable to assets sold,
transferred or written off
(19)
2
(53)
2
(34)
(1)
(107)
(29)
2
(37)
2
(7)
(1)
(74)
Transfers to assets held for sale
(15)
–
–
–
(15)
–
–
–
–
–
Accumulated at 31 December
781
666
1,294
87
2,828
716
575
1,096
39
2,426
Net book amount at 31 December
1,023
436
970
130
2,559
1,010
361
930
124
2,425
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 $320 million
(31 December 2024: $456 million).
2 In the cash flow statement, disposals of property, plant and equipment of $30 million (31 December 2024: $56 million) would include the gains/(losses) incurred as
part of other operating income (note 6) on disposal of assets during the year and the net book value disposed.
3 Includes revaluation surplus on initial measurement $5 million (31 December 2024: $25 million) recognised in statement of other comprehensive income and
subsequent re-measurement $14 million (31 December 2024: nil) taken to income statement.
19. 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.
Annual Report 2025 | Standard Chartered 385
Financial statements
19. Leased assets continued
Accounting policy continued
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 $268 million (2024: $265 million).
The right-of-use asset balances and depreciation charges are disclosed in Note 18. The lease liability balances are disclosed
in Note 23 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:
2025
2024
Between Between Between Between
one year two years one year two years
One year and two and five More than One year and two and five More than
or less years years five years Total or less years years five years Total
$million $million $million $million $million $million $million $million $million $million
Other liabilities – lease liabilities
292
245
483
450
1,470
279
223
443
414
1,359
20. Other assets
2025 2024
Other assets include: $million $million
Financial assets held at amortised cost (Note 13):
Hong Kong SAR Government certificates of indebtedness (Note 23)
1
6,448
6,369
Cash collateral
3
12,868
11,046
Acceptances and endorsements
6,561
5,476
Unsettled trades and other financial assets
10,893
11,694
36,770
34,585
Non-financial assets:
Commodities and emissions certificates
2
30,619
8,358
Other assets
542
525
67,931
43,468
1 The Hong Kong SAR Government certificates of indebtedness are subordinated to the claims of other parties in respect of bank notes issued.
2 Comprises precious metals and emission certificates, being inventory that is carried at fair value less costs to sell. $25.1 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: $5.6 billion).
$5.5 billion is emissions certificates and other commodity related balances classified as Level 2 (31 December 2024: $2.7 billion).
3 Cash collateral are margins placed to collateralise net derivative mark-to-market (MTM) positions.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025386
21. 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 13 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
The financial assets reported below are classified under Level 1: $74 million (2024: $58 million), Level 2: $178 million
(2024: $353 million) and Level 3: $790 million (2024: $473 million).
2025 2024
$million $million
Financial assets held at fair value through profit or loss
–
5
Loans and advances to banks
–
5
Financial assets held at amortised cost
1,042
884
Cash and balances at central banks
–
109
Loans and advances to banks
–
18
Loans and advances to customers
1,042
656
Debt securities held at amortised cost
–
101
Property, plant and equipment
1
32
15
Others
25
28
1,099
932
1 Consideration on disposal of Property, plant and equipment classified under assets held for sale was $128 million (31 December 2024: $53 million).
Liabilities held for sale
The financial liabilities reported below are classified under Level 1: $147 million (2024: $89 million) and Level 2: $761 million
(2024: $271 million).
2025 2024
$million $million
Financial liabilities held at amortised cost
908
360
Customer accounts
908
360
Other liabilities
6
16
Provisions for liabilities and charges
–
5
914
381
The amounts included in the tables above include $741 million of assets and $914 million of liabilities forming part of the
Botswana, Uganda, Zambia and Sri Lanka WRB businesses transferred to held for sale during the year.
Annual Report 2025 | Standard Chartered 387
Financial statements
22. Debt securities in issue
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy.
2025
2024
Certificates of Certificates of
deposit of Other debt deposit of Other debt
$100,000 securities $100,000 securities
or more in issue Total or more in issue Total
$million $million $million $million $million $million
Debt securities in issue
21,876
50,982
72,858
18,113
46,496
64,609
Debt securities in issue included within:
Financial liabilities held at fair value
through profit or loss (Note13)
–
16,009
16,009
–
13,731
13,731
Total debt securities in issue
21,876
66,991
88,867
18,113
60,227
78,340
In 2025, the Company issued a total of $7.9 billion senior notes for general business purposes of the Group as shown below:
Securities
$million
$1,000 million fixed rate senior notes due 2029 (callable 2028)
1,000
$1,000 million fixed rate senior notes due 2036 (callable 2035)
1,000
$500 million floating rate senior notes due 2029 (callable 2028)
500
HKD 1,250 million fixed rate senior notes due 2029 (callable 2028)
161
EUR 1,000 million fixed rate senior notes due 2033 (callable 2032)
1,174
$1,000 million fixed rate senior notes due 2031 (callable 2030)
1,000
$750 million floating rate senior notes due 2031 (callable 2030)
750
$2,000 million fixed rate senior notes due 2036 (callable 2035)
2,000
HKD 1,500 million fixed rate senior notes due 2029 (callable 2028)
193
$50 million fixed rate senior notes due 2029 (callable 2028)
50
CNY 500 million fixed rate senior notes due 2030 (callable 2029)
70
CNY 400 million fixed rate senior notes due 2030 (callable 2029)
56
Total Senior Notes issued
7,954
In 2024, the Company issued a total of $7.4 billion senior notes for general business purposes of the Group as shown below:
Securities
$million
$1,500 million fixed-rate senior notes due 2035 (callable 2034)
1,500
SGD 335 million fixed-rate senior notes due 2030 (callable 2029)
246
EUR 1,000 million fixed-rate senior notes due 2032 (callable 2031)
1,035
HKD 1,100 million fixed-rate senior notes due 2027 (callable 2026)
142
$500 million floating-rate senior notes due 2028 (callable 2027)
500
$1,000 million fixed-rate senior notes due 2028 (callable 2027)
1,000
$1,500 million fixed-rate senior notes due 2035 (callable 2034)
1,500
$1,500 million fixed-rate senior notes due 2030 (callable 2029)
1,500
Total Senior Notes issued
7,423
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025388
23. Other liabilities
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy for financial liabilities, Note 19 Leased assets
for the accounting policy for leases, and Note 31 Share-based payments for the accounting policy for cash-settled
share-based payments.
2025 2024
$million $million
Financial liabilities held at amortised cost (Note 13)
Notes in circulation
1
6,448
6,369
Acceptances and endorsements
6,567
5,476
Cash collateral
2
14,168
15,005
Property leases
1,097
1,041
Equipment leases
121
115
Unsettled trades and other financial liabilities
17,387
16,041
45,788
44,047
Non-financial liabilities
Cash-settled share-based payments
247
131
Other liabilities
620
503
46,655
44,681
1 Hong Kong currency notes in circulation of $6,448 million (31 December 2024: $6,369 million) that are secured by the Government of Hong Kong SAR certificates
of indebtedness of the same amount included in other assets (Note 20).
2 Cash collateral are margins received against collateralise net derivative mark-to-market positions.
24. 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.
2025
2024
Provision Provision
for credit Other for credit Other
commitments
1
provisions
2
Total
commitments
1
provisions
2
Total
$million $million $million $million $million $million
At 1 January
255
94
349
227
72
299
Exchange translation differences
(7)
–
(7)
10
(5)
5
(Release)/charge against profit
(24)
130
106
18
136
154
Provisions utilised
–
(47)
(47)
–
(121)
(121)
Other movements
3
–
–
–
–
12
12
At 31 December
224
177
401
255
94
349
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; including provision for Korea
equity-linked securities (ELS) portfolio. While a provision has been made in relation to the Korea ELS matter, a description of the matter is contained in note 26.
3 Includes the provisions transferred to held for sale.
Annual Report 2025 | Standard Chartered 389
Financial statements
25. 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 and 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 pre-specified terms and conditions in the form of loans, overdrafts or 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 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.
2025 2024
$million $million
Financial guarantees and other contingent liabilities
Financial guarantees, trade and irrevocable letters of credit
114,193
90,632
114,193
90,632
Commitments
Undrawn formal standby facilities, credit lines and other commitments to lend
One year and over
89,147
76,915
Less than one year
31,922
29,249
Unconditionally cancellable
78,176
76,365
199,245
182,529
Capital Commitments
Contracted capital expenditure approved by the directors but not provided for in these accounts
62
123
As set out in Note 26, the Group has contingent liabilities in respect of certain legal and regulatory matters. Note 26 also
describes a matter relating to equity linked securities sold by Standard Chartered Bank Korea, for which the Group has
recognised a provision.
26. 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.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025390
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 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 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 Group. It is alleged that the individuals breached their duties to the
Group and caused a waste of corporate assets by permitting the conduct that gave rise to the costs and losses to the 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 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 Group by the BMIS bankruptcy trustee
and the Fairfield funds’ liquidators, in each case seeking to recover funds paid to the 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 Group continues to defend the lawsuit brought by the BMIS bankruptcy trustee.
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.$2.7 billion. 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.
By way of update on other legal and regulatory matters which have previously been included in this Note on account of being
treated as contingent liabilities but are no longer treated as such, either because the matter has concluded (in the case of (a))
or a provision has been recognised (in the case of (b)):
Annual Report 2025 | Standard Chartered 391
Financial statements
26. Legal and regulatory matters continued
(a) Since October 2020, four lawsuits had been filed in the English High Court against Standard Chartered PLC on behalf of
more than 200 shareholders in relation to alleged untrue and/or misleading statements and/or omissions in information
published by Standard Chartered PLC in its rights issue prospectuses of 2008, 2010 and 2015 and/or public statements
regarding the Group’s historic sanctions, money laundering and financial crime compliance issues. These lawsuits were brought
under sections 90 and 90A of the Financial Services and Markets Act 2000. The trial of these lawsuits was due to start in late
2026; however, in December 2025, a settlement was reached with the claimants, and this matter is now concluded.
(b) A number of Korean banks sold equity linked securities (ELS) to customers, the redemption values of which are determined
by the performance of various stock indices. From January 2021 to May 2023, Standard Chartered Bank Korea sold relevant ELS
to its customers. Due to the performance of the Hang Seng China Enterprise Index, many customers of Korean banks
experienced loss on their ELS investments. Standard Chartered Bank Korea has paid or offered compensation to its impacted
customers. In November 2025, the Financial Supervisory Service issued a notice of a proposed regulatory penalty relating to the
ELS matter, which Standard Chartered Bank Korea is contesting. Appropriate provisions have been recognised with respect to
the proposed penalty amount and outstanding compensation claims (see Note 24).
27. Subordinated liabilities and other borrowed funds
Accounting policy
Refer to Note 13 Financial instruments for the relevant accounting policy.
2025 2024
$million $million
Subordinated loan capital – issued by subsidiary undertakings
$700 million 8.0 per cent subordinated notes due 2031
1
330
326
NPR2.4 billion 10.3 per cent fixed rate subordinated notes due 2028
2
17
18
347
344
Subordinated loan capital – issued by the Company
3
£900 million 5.125 per cent subordinated notes due 2034
657
601
$2 billion 5.7 per cent subordinated notes due 2044
2,222
2,179
$750 million 5.3 per cent subordinated notes due 2043
716
691
$1.25 billion 4.3 per cent subordinated notes due 2027
1,218
1,174
$1 billion 3.516 per cent fixed rate reset subordinated notes due 2030 (callable 2025)
–
996
$500 million 4.866 per cent fixed rate reset subordinated notes due 2033 (callable 2028)
493
478
£96.035 million 7.375 per cent Non-Cum Pref Shares (reclassed as Debt) – Other borrowings
129
121
£99.250 million 8.25 per cent Non-Cum Pref Shares (reclassed as Debt) – Other borrowings
134
124
$750 million 3.603 per cent fixed rate reset subordinated notes due 2033 (callable 2032)
671
634
€1 billion 2.5 per cent fixed rate reset subordinated notes due 2030 (callable 2025)
–
1,015
$1.25 billion 3.265 per cent fixed rate reset subordinated notes due 2036 (callable 2030)
1,094
1,032
€1 billion 1.200 per cent fixed rate reset subordinated notes due 2031 (callable 2026)
1,153
993
8,487
10,038
Total for Group
8,834
10,382
1 Issued by Standard Chartered Bank.
2 Issued by Standard Chartered Bank Nepal Limited. NPR refers to Nepalese Rupee.
3 In the balance sheet of the Company the amount recognised is $8,684 million (2024: $10,338 million), with the difference on account of hedge accounting achieved
on a Group basis.
2025
2024
USD EUR GBP NPR Total USD EUR GBP NPR Total
$million $million $million $million $million $million $million $million $million $million
Fixed rate subordinated debt
6,744
1,153
920
17
8,834
7,510
2,008
846
18
10,382
Redemptions and repurchases during the year.
Standard Chartered PLC exercised its right to redeem $1 billion 3.516 per cent subordinated notes 2025 and €1 billion 2.5 per cent
subordinated notes 2025.
Issuance during the year
There was no issuance during the period.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025392
28. 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.
Preference Total share
Number of Ordinary Ordinary share capital and capital and Other equity
ordinary shares
share capital
1
Share premium
share premium
2
share premium instruments
million $million $million $million $million $million
At 1 January 2024
2,665
1,332
3,989
1,494
6,815
5,512
Cancellation of shares including share
buyback
(240)
(120)
–
–
(120)
–
Additional Tier 1 equity issuance
4
–
–
–
–
–
1,568
Additional Tier 1 Redemption
5
–
–
–
–
–
(553)
Other movements
5
–
–
–
–
–
(25)
At 31 December 2024
2,425
1,212
3,989
1,494
6,695
6,502
Cancellation of shares including share
buyback
(162)
(81)
–
–
(81)
–
Additional Tier 1 equity issuance
4
–
–
–
–
–
1,989
Additional Tier 1 Redemption
5
–
–
–
–
–
(1,000)
Other movements
3
–
–
–
–
–
37
At 31 December 2025
2,263
1,131
3,989
1,494
6,614
7,528
1 Issued and fully paid ordinary shares of 50 cents each.
2 Includes preference share capital of $75,000.
3 2025 include transfer of $25 million realised translation loss on redemption of AT1 securities of SGD 750 million to retained earnings.
4 Movement in 2025 relates to $994 million and $995 million fixed rate resetting perpetual subordinated contingent convertible AT1 securities issued by Standard
Chartered PLC. Movement in 2024 includes $993 million and $575 million (SGD 750 million) fixed rate resetting perpetual subordinated contingent convertible
AT1 securities issued by Standard Chartered PLC.
5 Movement in 2025 relates to redemption of $1,000 million Fixed Rate Resetting Perpetual Contingent Convertible Securities on its first optional redemption date
of 26 July 2025. Movement in 2024 relates to redemption of AT1 securities of SGD 750 million ($553 million) and realised translation loss ($25 million) reported
in other movements.
Share buyback
On 30 July 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each.
Nominal value of share purchases was $69 million, the total consideration paid was $1,500 million, and the buyback completed
on 30 January 2025. The total number of shares purchased of 137,562,542 representing 5.39 per cent of the ordinary shares in
issue at the beginning of the programme. The nominal value of the shares was transferred from the share capital to the capital
redemption reserve account.
On 21 February 2025, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each.
Nominal value of share purchases was $49 million, the total consideration paid was $1,500 million, and the buyback completed
on 30 July 2025. The total number of shares purchased of 98,162,451 representing 4.07 per cent of the ordinary shares in issue
at the beginning of the programme. The nominal value of the shares was transferred from the share capital to the capital
redemption reserve account.
On 31 July 2025, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each.
As at 31 December 2025, nominal value of share purchases was $27 million, the total consideration paid was $1,073 million and
the total number of shares purchased was 53,061,718, representing 2.29 per cent of the ordinary shares in issue at the beginning
of the programme. The buyback was completed on 26 January 2026 with a further $227million consideration paid and recognised
as irrevocable obligation to buyback shares. The nominal value of the shares was transferred from the share capital to the
capital redemption reserve account.
Annual Report 2025 | Standard Chartered 393
Financial statements
28. Share capital, other equity instruments and reserves continued
The shares were purchased by Standard Chartered PLC on various exchanges not including the Hong Kong Stock Exchange.
Average
Highest Lowest price paid Aggregate Aggregate
Number of price Paid price paid per share price paid price paid
ordinary shares £ £ £ £ $
January 2025
11,300,128
10.87
9.704
10.4136
117,671,362
145,286,293
February 2025
3,395,890
12.725
11.79
12.33
41,849,427
52,884,831
March 2025
24,636,534
12.81
11.175
11.8839
292,546,496
377,784,647
April 2025
19,971,649
11.545
8.728
10.201
201,750,555
264,351,775
May 2025
18,340,963
11.755
10.385
11.2748
205,669,905
274,781,456
June 2025
15,903,416
12.2
11.16
11.7
186,026,636
252,365,331
July 2025
15,913,999
13.78
11.675
12.9343
205,721,926
277,831,848
August 2025
10,425,043
14.31
12.855
13.7655
143,350,111
192,812,669
September 2025
11,517,686
14.65
13.545
14.1412
162,803,283
219,854,779
October 2025
10,604,541
15.645
13.515
14.5063
153,001,512
204,574,723
November 2025
9,494,913
16.83
15.255
16.0656
152,484,758
200,451,254
December 2025
11,019,535
18.345
16.235
17.4014
191,126,325
255,662,097
Ordinary share capital
In accordance with the Companies Act 2006 the Company does not have authorised share capital. The nominal value of each
ordinary share is 50 cents.
During the period nil shares were issued under employee share plans.
Preference share capital
At 31 December 2025, the Company has 15,000 $5 non-cumulative redeemable preference shares in issue, with 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 and are classified in equity.
The available profits of the Company are distributed to the holders of the issued preference shares in priority to payments made
to holders of the ordinary shares and in priority to, or pari passu with, any payments to the holders of any other class of shares in
issue. On a winding up, the assets of the Company are applied to the holders of the preference shares in priority to any payment
to the ordinary shareholders and in priority to, or pari passu with, the holders of any other shares in issue, for an amount equal
to any dividends payable (on approval of the Board) and the nominal value of the shares together with any premium as
determined by the Board. The redeemable preference shares are redeemable at the paid up amount (which includes premium)
at the option of the Company in accordance with the terms of the shares. The holders of the preference shares are not entitled
to attend or vote at any general meeting except where any relevant dividend due is not paid in full or where a resolution is
proposed varying the rights of the preference shares.
Other equity instruments
The table provides details of outstanding Fixed Rate Resetting Perpetual Subordinated Contingent Convertible AT1 securities
issued by Standard Chartered PLC. All issuances are made for general business purposes and to increase the regulatory capital
base of the Group.
Proceeds net of Conversion
Nominal value issue costs Interest price per
Issuance date million $ million
rate
1
Coupon payment dates each year
2
First reset dates
3
ordinary share
4
14 January 2021
$1,250
1,239
4.75%
14 January, 14 July
14 July 2031
$6.353
19 August 2021
$1,500
1,489
4.30%
19 February, 19 August
19 August 2028
$6.382
15 August 2022
$1,250
1,239
7.75%
15 February, 15 August
15 February 2028
$7.333
08 March 2024
$1,000
993
7.875%
8 March, 8 September
8 September 2030
$8.216
19 September 2024
SGD750
579
5.300%
19 March, 19 September
19 March 2030
SGD12.929
16 January 2025
$1,000
994
7.625%
16 January, 16 July
16 July 2032
$12.330
14 November 2025
$1,000
995
7.00%
14 May, 14 November
14 May 2036
$20.760
Total
7,528
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.
4 Conversion price set at the time of pricing with reference to closing share price and any applicable discount.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025394
The AT1 issuances above are primarily purchased by institutional investors.
The principal terms of the AT1 securities are described below:
• The securities are perpetual and redeemable, at the option of Standard Chartered PLC in whole but not in part, on the first
interest reset date and each date falling five years after the first reset 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 Standard Chartered PLC 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 Standard Chartered PLC, subject
to certain additional restrictions set out in the terms and conditions. Accordingly, Standard Chartered PLC 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 convert into ordinary shares of Standard Chartered PLC, at a pre-determined price detailed in the table above,
should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. Approximately 911 million ordinary
shares would be required to satisfy the conversion of all the securities mentioned above.
The securities rank behind the claims against Standard Chartered PLC of (a) unsubordinated creditors, (b) which are expressed
to be subordinated to the claims of unsubordinated creditors of Standard Chartered PLC but not further or otherwise; or (c)
which are, or are expressed to be, junior to the claims of other creditors of Standard Chartered PLC, 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 conversion trigger.
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
• The amounts in the ‘Capital and Merger Reserve’ represents the premium arising on shares issued using a cash box financing
structure, which required the Company to create a merger reserve under section 612 of the Companies Act 2006. Shares were
issued using this structure in 2005 and 2006 to assist in the funding of Korea ($1.9 billion) and Taiwan ($1.2 billion)
acquisitions, in 2008, 2010 and 2015 for the shares issued by way of a rights issue, primarily for capital maintenance
requirements and for the shares issued in 2009 by way of an accelerated book build, the proceeds of which were used in the
ordinary course of business of the Group. The funding raised by the 2008, 2010 and 2015 rights issues and 2009 share issue
was fully retained within the Company. Of the 2015 funding, $1.5 billion was used to subscribe to additional equity in Standard
Chartered Bank, a wholly owned subsidiary of the Company. Apart from the Korea, Taiwan and Standard Chartered Bank
funding, the merger reserve is considered realised and distributable
• 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 earning
• 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 and taxation. 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, net
of taxation. 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
• 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, own
shares held (treasury shares) and share buybacks.
Annual Report 2025 | Standard Chartered 395
Financial statements
28. Share capital, other equity instruments and reserves continued
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 PLC (the Company) were $14.1 billion (31 December
2024: $14.1 billion). Distributable reserves of the Company were $14.1 billion, which include the distributable portions of retained
earnings. Distributable reserves are derived from the Merger reserve and Retained earnings, reduced by ordinary dividend
payments, distributions on AT1 instruments, share buybacks, impairments in investments in subsidiaries, restricted items in line
with section 830 and 831 of the Companies Act 2006. They are increased by profits and the realisation of retained earnings.
Own shares
The 2004 Employee Benefit Trust (2004 Trust) is used in conjunction with the Group’s employee share schemes and other
employee share-based payments (such as upfront shares and salary shares). Computershare Trustees (Jersey) Limited is the
trustee of the 2004 Trust. Group companies fund the 2004 Trust from time to time to enable the trustees to acquire shares
in Standard Chartered PLC to satisfy these arrangements.
Details of the shares purchased and held by the 2004 Trust are set out below.
2004
Trust
2025
2024
Shares purchased during the period
24,477,541
19,604,557
Market price of shares purchased ($million)
508
223
Shares held at the end of the period
16,474,859
17,589,987
Maximum number of shares held during the period
25,082,882
28,085,688
Except as disclosed, neither the Company nor any of its subsidiaries has bought, sold or redeemed any securities of the
Company listed on The Stock Exchange of Hong Kong Limited during the period.
Computershare Trustees (Jersey) Limited abstains from voting on the Standard Chartered PLC shares held in the 2004 Trust.
Dividend waivers
The trustees of the 2004 Trust, which holds ordinary shares in Standard Chartered PLC in connection with the operation
of its employee share plans, waive any dividend on the balance of ordinary shares that have not been allocated to employees,
except for 0.01p per share.
Changes in share capital and other equity instruments of Standard Chartered PLC subsidiaries
The table below details the transactions in equity instruments (including convertible and hybrid instruments) of the Group’s
subsidiaries, including issuances, conversions, redemptions, purchase or cancellation during the financial year. This is required
under the Hong Kong Listing requirements, appendix D2 paragraph 10.
Description of Issued/(redeemed) Issued/(redeemed)
Name Shares Shares capital
Anchorpoint Financial Limited
HKD Ordinary
9,360,000
HKD93,600,000
Appro Onboarding Solutions FZ-LLC
AED1,000.00 Ordinary
55,609
AED55,609,000
Audax Financial Technology Pte. Ltd
US$1.00 Ordinary
8,600,000
USD8,600,000
CashEnable Pte. Ltd.
US$ Ordinary
4,200,000
USD4,200,000
Financial Inclusion Technologies Ltd
US$ Ordinary
17,513,444
USD17,513,444
Fourtwothree Pte. Ltd
US$ Ordinary
2,300,000
USD2,300,000
Furaha Holding Ltd
US$1.00 Ordinary
8,500,000
USD8,500,000
Letsbloom India Private Limited
INR10.00 Equity
3,815,713
INR38,157,130
Letsbloom Pte. Ltd.
US$ Ordinary-A
1,470,000
USD1,470,000
Libeara (Singapore) Pte. Ltd.
US$ Ordinary
4,300,000
USD4,300,000
Libeara Pte. Ltd.
US$ Ordinary
3,500,000
USD3,500,000
Mox Bank Limited
HKD Ordinary
93,840,000
HKD938,400,000
myZoi Financial Inclusion Technologies LLC
AED1.00 Ordinary
40,000,000
AED40,000,000
Power2SME Pte. Ltd.
US$ Ordinary
9,175,676
USD9,175,676
PT Labamu Sejahtera Indonesia
IDR10,000.00 Ordinary
6,090,299
IDR60,902,990,000
Qatalyst Pte. Ltd.
US$1.00 Ordinary
1,100,000
USD1,100,000
SC Ventures Holdings Limited
US$1.00 Ordinary
44,190,000
USD44,190,000
SCV Master Holding Company Pte. Ltd.
US$ Ordinary
66,200,000
USD66,200,000
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025396
Description of Issued/(redeemed) Issued/(redeemed)
Name Shares Shares capital
SCV Research and Development Pte. Ltd.
US$ Ordinary-A
18,526,896
USD18,526,896
Sky Harmony Holdings Limited
USD1.00 Ordinary
1
USD1
Solv Vietnam Company Limited
VND Charter Capital
12,845,000,000
VND12,845,000,000
Solvezy Technology Ghana Ltd
GHS Ordinary
40,957,952
GHS40,957,952
Solvezy Technology Kenya Limited
KES1,000.00 Ordinary
289,482
KES289,482,000
Solv-India Pte. Ltd.
US$ Ordinary
54,900,000
USD54,900,000
Standard Chartered Bank Côte d’Ivoire SA
XOF100,000.00
52,566
XOF5,256,600,000
Standard Chartered Bank Nigeria Limited
NGN1.00 Ordinary
9,151,152,653
NGN9,151,152,653
Standard Chartered Holdings Limited
US$2.00 Ordinary
11,624,204
USD23,248,408
Standard Chartered I H Limited
US$1.00 Ordinary
23,248,408
USD23,248,408
Standard Chartered Luxembourg S.A.
€1.00 Ordinary
1,500,000
EUR1,500,000
Standard Chartered Private Equity (Mauritius) Limited
US$1.00 Ordinary
500,000
USD500,000
Standard Chartered Private Equity (Mauritius) lll Limited
US$1.00 Ordinary
38,813,419
USD38,813,419
Standard Chartered Research and Technology India Private Limited
INR10.00 Equity
34,617,793
INR346,177,930
Standard Chartered Strategic Investments Limited
US$1.00 Ordinary
5,949,826
USD5,949,826
TASConnect (Malaysia) Sdn. Bhd.
RM5.00 Ordinary
687,900
MYR3,439,500
Trust Bank Singapore Limited
SGD Ordinary
25,000,000
SGD25,000,000
Zodia Custody (Europe) S.A.
€100.00 Ordinary
300
EUR30,000
Zodia Holdings Limited
US$1.00 Ordinary
41,401,604
USD41,401,604
Zodia Markets (AME) Limited
US$ Ordinary
1,200,000
USD1,200,000
Zodia Markets (Jersey) Limited
US$ Ordinary
10,000
USD10,000
Zodia Markets Holdings Limited
US$1.00 Series A
4,560
USD4,560
Please see Note 22 Debt securities in issue for issuances and redemptions of senior notes.
Please see Note 27 Subordinated liabilities and other borrowed funds for issuance and redemptions of subordinated liabilities.
Please see Note 41 Related undertakings of the Group for subsidiaries liquidated, dissolved or sold during the year.
29. Non-controlling interests
2025 2024
$million $million
As at 1 January
394
396
Comprehensive income/(loss) for the year
45
(22)
Income/(loss) in equity attributable to non-controlling interests
33
(14)
Other profits/(loss) attributable to non-controlling interests
12
(8)
Distributions
(50)
(43)
Other increases
1
76
63
As at 31 December
465
394
1 Movements in 2025 are primarily from Mox Bank Limited ($26 million), Standard Chartered Research and Technology India Private Limited ($12 million), Zodia
Markets Holdings Limited ($15 million), Trust Bank Singapore Limited ($8 million), Anchorpoint Financial Limited ($6 million), Financial Inclusion Tech ($6 million)
and Furaha Holding Ltd ($3million). Movements in 2024 are primarily from non-controlling interests pertaining to Trust Bank Singapore Limited ($55 million) and
Mox Bank Limited ($14 million) partly offset by disposal of SCB Angola S.A. ($6 million). Cash received from additional investment was $40 million (31 December
2024: $55 million).
Annual Report 2025 | Standard Chartered 397
Financial statements
30. Retirement benefit obligations
Accounting policy
The Group operates pension and other post-retirement benefit plans around the world, which are 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 assumptions
Demographic assumptions, including mortality and turnover rates, are typically set based
on the 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.
Retirement benefit obligations and charge comprises:
Obligation
Charge
2025 2024 2025 2024
$million $million $million $million
Defined benefit plans
146
101
125
62
Defined contribution plans
23
14
393
1
389
Total
169
115
518
2
451
2
1 The Group during the year utilised against defined contribution payments, $1 million forfeited pension contributions in respect of employees who left before their
interests vested fully. The residual balance of forfeited contributions is $21 million.
2 Refer to note 7 – Operating expenses.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025398
The Group operates over 60 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,
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.
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 IFRIC 14.
UK Fund
The Standard Chartered Pension Fund (the ‘UK Fund’) is the Group’s largest pension plan, representing 46 per cent
(31 December 2024: 46 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 IAS 19, 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 $7million (£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 Group are in Hong Kong, India, Jersey, Korea, Taiwan,
Thailand, United Arab Emirates (UAE) and the United States of America (US). Plans in Hong Kong, India, Korea, Taiwan,
Thailand, and UAE remain open for accrual of future benefits.
Annual Report 2025 | Standard Chartered 399
Financial statements
30. Retirement benefit obligations continued
Key assumptions
The principal financial assumptions used at 31 December 2025 were:
2025
2024
UK Funded
Overseas Plans
1
Unfunded Plans
2
UK Funded
Overseas Plans
1
Unfunded Plans
2
% % % % % %
Discount rate
5.5
1.3 – 6.7
1.4 – 6.7
5.5
1.6 – 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 – 2.8
0 – 2.4
2.3
0 – 2.9
0 – 2.3
Post-retirement
n/a
n/a
8% in 2025 reducing
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 funded defined benefit overseas plans in Hong Kong, India, Jersey, Korea, Taiwan, and the US. These comprise around
80 per cent of the total liabilities of overseas funded plans.
2 The range of assumptions shown is for the main unfunded defined benefit plans in India, Korea, Thailand, Hong Kong, UAE, UK and the US. They comprise over
90 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 2023 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.
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
(2024: $25 million) and $20 million for the other plans (2024: $20 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 (2024: $15 million) and $10 million for the other plans
(2024: $15 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
(2024: nil) and approximately $10 million for the other plans (2024: $10 million)
• If longevity expectations increased by one year the liability would increase by approximately $40 million for the UK Fund
(2024: $35 million) and $10 million for the other plans (2024: $10 million)
Although this analysis does not take account of the full distribution of cash flows expected, 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
102
21
Benefits expected to be paid during 2027
92
138
19
Benefits expected to be paid during 2028
94
117
17
Benefits expected to be paid during 2029
96
127
17
Benefits expected to be paid during 2030
99
122
19
Benefits expected to be paid during 2031 to 2035
529
595
91
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025400
Fund values:
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
108
–
108
2
–
2
132
–
132
Government bonds
332
–
332
323
–
323
342
–
342
269
–
269
Corporate bonds
411
134
545
266
–
266
357
126
483
291
–
291
Hedge funds
–
4
4
94
–
94
–
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
151
165²
316
35
–
35
60
153
2
213
Others
9
–
9
20
–
20
7
2
9
–
156
156
Total fair value
of assets
1
794
407
1,201
962
183
1,145
765
383
1,148
752
324
1,076
1 Self-investment is monitored closely and is less than $1 million of Standard Chartered equities and bonds for 2025 (31 December 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 Group is a constituent of the relevant index.
2 Cash and equivalents includes the value of insurance contracts held in Korea which invest only in short term money market instruments.
At 31 December 2025
At 31 December 2024
Funded plans
Unfunded Plans
Funded plans
Unfunded Plans
Overseas Overseas
UK Fund Plans UK Fund Plans
$million
$million
$million
$million
$million
$million
Total fair value of assets
1,201
1,141
1
n/a
1,148
1,076
n/a
Present value of liabilities
(1,133)
(1,170)
(185)
(1,070)
(1,075)
(180)
Net pension plan asset/(obligation)
68
(29)
(185)
78
1
(180)
Of which: Total pension assets in
respect of plans in surplus
68
86
–
78
73
–
Of which: Total pension obligations in
respect of plans in deficit
–
(115)
(185)
–
(72)
(180)
1 Overseas plan assets include an asset ceiling in Kenya and 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 Unfunded Overseas Unfunded
UK Fund plans plans Total UK Fund plans plans Total
$million $million $million $million $million $million $million $million
Current service cost
1
–
50
6
56
–
44
8
52
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)
(61)
–
(126)
(56)
(41)
–
(97)
Interest on pension plan liabilities
60
59
8
127
54
41
8
103
Total charge to profit before deduction of tax
(5)
116
14
125
(2)
49
15
62
Losses/(gains) on plan assets
4
18
(36)
–
(18)
78
(32)
–
46
Losses/(gains) on liabilities
10
18
1
29
(103)
6
(1)
(98)
Total losses/(gains) recognised directly in statement
of comprehensive income before tax
28
(18)
1
11
(25)
(26)
(1)
(52)
Deferred taxation
(2)
(2)
–
(4)
5
7
–
12
Total losses/(gains) after tax
26
(20)
1
7
(20)
(19)
(1)
(40)
1 Includes administrative expenses paid out of plan assets of $1 million (31 December 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 to termination benefits 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 $97 million
(31 December 2024: $73 million loss) .
Annual Report 2025 | Standard Chartered 401
Financial statements
30. Retirement benefit obligations continued
Movement in the deficit during the year comprises:
2025
2024
Funded plans Funded plans
Overseas Unfunded Overseas Unfunded
UK Fund plans plans Total UK Fund plans plans Total
$million $million $million $million $million $million $million $million
Surplus/(Deficit)
78
1
(180)
(101)
40
(17)
(189)
(166)
Contributions
7
71
16
94
13
39
16
68
Current service cost
1
–
(50)
(6)
(56)
–
(44)
(8)
(52)
Past service cost and curtailments
2
–
(67)
–
(67)
–
(2)
1
(1)
Settlement costs and transfers impact
–
(1)
–
(1)
–
(3)
–
(3)
Net interest on the net defined benefit asset/liability
5
2
(8)
(1)
2
–
(8)
(6)
Actuarial (losses)/gains
(28)
18
(1)
(11)
25
26
1
52
Asset held for Sale
–
–
–
–
–
–
–
–
Other movement
–
–
–
–
–
(1)
–
(1)
Asset ceiling
3
–
(4)
–
(4)
–
–
–
–
Exchange rate adjustment
6
1
(6)
1
(2)
3
7
8
Surplus/(Deficit)
68
(29)
(185)
(146)
78
1
(180)
(101)
1 Includes administrative expenses paid out of plan assets of $1 million (31 December 2024: $1 million).
2 Relates to provisional impact of regulatory change in India and RBAT court ruling in Kenya.
3 Overseas plans include an asset ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.
The Group’s expected contribution to its defined benefit pension plans in 2026 is $83 million.
2025
2024
Assets Obligations Total Assets Obligations Total
$million $million $million $million $million $million
At 1 January
2,224
(2,325)
(101)
2,119
(2,285)
(166)
Contributions
1
104
(10)
94
69
(1)
68
Current service cost
2
–
(56)
(56)
–
(52)
(52)
Past service cost and curtailments
–
(67)
(67)
–
(1)
(1)
Settlement costs
3
–
(1)
(1)
–
(3)
(3)
Interest cost on pension plan liabilities
–
(127)
(127)
–
(103)
(103)
Interest income on pension plan assets
126
–
126
97
–
97
Benefits paid out
2
(210)
210
–
(169)
169
–
Actuarial gains/(losses)
4
18
(29)
(11)
(46)
98
52
Asset held for sale
–
–
–
–
–
–
Other movement
–
–
–
212
(213)
(1)
Asset ceiling
5
(4)
–
(4)
–
–
–
Exchange rate adjustment
84
(83)
1
(58)
66
8
At 31 December
2,342
(2,488)
(146)
2,224
(2,325)
(101)
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 in Indonesia.
4 Actuarial loss on obligation comprises $11 million loss (31 December 2024: $127 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: $30 million loss) from experience.
5 Assets include a ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025402
31. 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 2025 in respect of 2024 performance, which vest in 2026-2028, is recognised as an expense
over the period from 1 January 2024 to the vesting dates in 2026-2028. 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.
2025¹
2024
1
Cash Equity Total Cash Equity Total
$million $million $million $million $million $million
Deferred share awards
81
206
287
31
160
191
Other share awards
80
32
112
34
109
143
Total share-based payments
2
161
238
399
65
269
334
1 No forfeiture assumed.
2 The total share-based payments charge during the year includes costs relating to Business ventures. Business ventures are established as separate legal entities
with their own employee share ownership plans (ESOP) to attract and incentivise talent. ESOPs have been set up with share-based payment charges recorded
in 2025 with $2 million (2024: $2 million) in cash settled and $11 million (2024: $14 million) equity settled deferred awards spread across 18 entities.
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.
No other principal subsidiaries have separate share schemes.
Annual Report 2025 | Standard Chartered 403
Financial statements
31. 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 Incentive The vesting of awards granted in 2025, 2024 The fair value of the relative TSR component
Plan (LTIP) awards and 2023 are subject to the following is calculated using the probability of meeting
performance measures: the measures over a three-year performance
•
relative total shareholder return (TSR);
period, using a Monte Carlo simulation model.
•
return on tangible equity (RoTE) (with a Common
The value of the remaining components is
Equity Tier 1 (CET1) underpin); and based on the expected performance against
•
strategic measures (including targets set for
the RoTE and strategic measures in the
sustainability linked to business strategy). scorecard and the resulting estimated number
of shares expected to vest at each reporting
Each measure is assessed independently over a date. These combined values are used to
three-year period. LTIP awards have an individual determine the accounting charge.
conduct gateway requirement that results in the
award lapsing if not met. No dividend equivalents accrue for the LTIP
awards made in 2025, 2024, 2023
or 2022
Vested awards are delivered in ordinary Standard and the fair value takes this into account,
Chartered PLC shares. calculated by reference to market consensus
dividend yield.
Deferred shares
Used to deliver:
The fair value for deferred shares, which
•
the deferred portion of year-end variable
are granted to employees who are not
remuneration, in line with both market practice categorised as material risk takers, is based
and regulatory requirements. These awards vest on 100 per cent of the face value of the shares at the date of grant as the share price will
in instalments on anniversaries of the award date reflect expectations of all future dividends.
specified at the time of grant. This enables the
Group to meet regulatory requirements relating to For awards granted to material risk takers
deferral levels, and is in line with market practice.
in 2025,
the fair value of awards takes into
•
replacement buy-out awards to new joiners who
account the lack of dividend equivalents,
forfeit awards on leaving their previous employers. calculated by reference to market consensus
These vest in the quarter most closely following dividend yield.
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.
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 dividend 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
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025404
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
N/A
20.49
N/A
18.48
N/A
14.86
N/A
14.95
16.95,
17.16,
13.18,
13.41,
13.34,
13.56,
1-5 years
–
–
2.5, 2.5, 2.5
17.37
3.5, 3.5, 3.5
13.64
3.3, 3.3, 3.3
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 dividend
yield Fair value 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, N/A
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 dividend dividend dividend
yield Fair value yield Fair value yield Fair value 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
6 months
2.5
18.85, 19.09,
19.32
7 months
3.3
20.97
9 months
2.5
19.2
10 months
3.5
15.58
1 year
3.3
20.30, 20.46,
2.5
18.39, 18.62,
3.5
15.06, 15.33,
3.3
14.59, 14.71
20.63
18.74,
18.85,
15.44
18.97,
19.09
2 years
3.3
19.65, 19.81,
2.5
17.94, 18.17,
3.5
14.92
3.3
14.12, 14.24
19.97
18.28,
18.39,
18.51,
18.62
3 years
3.3
19.18, 19.33
2.5
17.72, 17.94,
3.5
14.41
3.3
13.78
18.17
4 years
2.5
17.51
5 years
Annual Report 2025 | Standard Chartered 405
Financial statements
31. 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 dividend dividend dividend
yield Fair value yield Fair value yield Fair value 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
1 year
4.2
11.22, 11.36
4.2
9.02,
9.11,
3.8
8.58,
8.66,
4.2
7.73,
7.81,
9.21,
9.30
8.74
7.89,
7.97
1.4 years
2 years
4.2
10.77, 10.90
4.2
8.65,
8.74,
3.8
8.26,
8.34
4.2
7.42,
7.50,
8.83,
8.93
7.57,
7.65
2.4 years
3 years
4.2
10.46,
4.2
8.39
4.2
7.20,
7.34
4 years
4.2
10.04
4.2
7.05
5 years
All Employee Sharesave Plans
Under the 2023 Sharesave Plan, employees may open a savings contract and save up to £500 (increased from £250 since 2024)
per month over three years to purchase ordinary shares in the Company at a discount of up to 20 per cent (the ‘option exercise
price’). The discount applies to the higher of: the 5-day average share price prior to the 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.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025406
An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed
grant, it would cause the number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years ending
with that calendar year, under the 2021 Plan or 2023 Sharesave Plan and under any other employee share plan operated by
Standard Chartered PLC to exceed 10 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time.
An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed
grant, it would cause the number of Standard Chartered PLC ordinary shares which may be issued or transferred pursuant
to awards then outstanding under the 2021 Plan or 2023 Sharesave Plan as relevant to exceed such number as represents
10 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time.
The number of Standard Chartered PLC ordinary shares which may be issued pursuant to awards granted to an individual
under the 2021 or 2023 Plan in any 12-month period must not exceed 1 per cent of the ordinary share capital of Standard
Chartered PLC in issue at that time. 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).
As at 1 January 2025 and 31 December 2025, the shareholder dilution under our discretionary and Sharesave plans adopted
by Standard Chartered PLC and its subsidiaries represented 5.1 per cent and 5.1 per cent of the issued ordinary share capital
of Standard Chartered PLC respectively. Accordingly, the number of Standard Chartered PLC shares available to be granted
under all discretionary and Sharesave plans at the beginning and the end of the year ended 31 December 2025 were 123,504,051
and 115,091,962 respectively. As at 31 December 2025, the number of Standard Chartered PLC shares available to be granted
under the discretionary plan was 27,524,527 (1.2% of issued shares) and 115,091,962 available to be granted under the Sharesave
plan (5.1% of issued shares).
The maximum number of Standard Chartered PLC shares that may be issued in respect of share options and awards granted
under the discretionary and Sharesave plans during the year ended 31 December 2025 divided by the weighted average
number of Standard Chartered PLC shares in issue for the year ended 31 December 2025 is 1 per cent.
Standard Chartered PLC has been granted a waiver from strict compliance with Rules 17.03A, 17.03B(1), 17.03E and 17.03(18)
of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong. Details are set out in the market
announcement made on 30 March 2023. In relation to the waiver of strict compliance with Note 1 to 17.03(18), in 2025 no
changes to the plan rules have been proposed that fall within scope of disclosure requirements under the terms of the waiver.
Reconciliation of share award movements for the year to 31 December 2025
Weighted
1 average
Discretionary Sharesave
Deferred exercise price
LTIP
shares
Sharesave
6,7
(£)
Outstanding at 1 January 2025
9,640,693
51,693,726
20,565,111
5.48
Granted
2,3,4
2,159,737
16,143,146
4,926,740
–
Lapsed
8
(324,419)
(713,633)
(1,175,886)
6.20
Vested/Exercised
5
(1,272,072)
(20,517,080)
(1,227,776)
3.87
Outstanding at 31 December 2025
10,203,939
46,606,159
23,088,189
6.72
Total number of securities available for issue under the plan
10,203,939
46,606,159
23,088,189
6.72
Percentage of the issued shares this represents as at 31 December 2025
0.45
2.06
1.02
5.42
Exercisable as at 31 December 2025
–
90,903
82,613
5.42
Range of exercise prices (£)
–
–
4.23 – 11.10
Intrinsic value of vested but not exercised options ($ million)
0.00
2.23
1.42
Weighted average contractual remaining life (years)
7.14
8.00
2.06
Weighted average share price for awards exercised during the period (£)
11.78
11.75
11.50
1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards.
2 2,159,737 (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.
3 14,537,101 (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. 141,397 (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. 48,376 (Deferred shares) granted as a notional dividend
on 28 August 2025. 921,595 (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. 161,058 (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.
4 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.
5 The weighted average closing price of the shares immediately before the dates on which the options or awards were exercised or vested is £11.87.
6 The exercise price of Sharesave grants are determined with a 20% discount on the higher of the average closing price of the 5 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 5 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 202 and 203 of the Standard Chartered PLC Annual Report 2025 for information specific to Directors.
Annual Report 2025 | Standard Chartered 407
Financial statements
31. Share-based payments continued
Reconciliation of share award movements for the year to 31 December 2024
Weighted
Discretionary
1
average
Sharesave
Deferred exercise price
LTIP
shares
Sharesave
5,6
(£)
Outstanding at 1 January 2024
10,947,382
47,068,204
16,902,217
4.49
Granted
2,3
2,320,695
25,712,216
9,707,454
–
Lapsed
7
(2,703,518)
(1,431,969)
(1,289,780)
4.88
Vested/Exercised
4
(923,866)
(19,654,725)
(4,754,780)
3.42
Outstanding at 31 December 2024
9,640,693
51,693,726
20,565,111
5.48
Total number of securities available for issue under the plan
9,640,693
51,693,726
20,565,111
5.48
Percentage of the issued shares this represents as at 31 December 2024
0.40
2.13
0.85
Exercisable as at 31 December 2024
–
250,094
1,121,867
3.78
Range of exercise prices (£)
3
–
–
3.67 – 6.10
Intrinsic value of vested but not exercised options ($ million)
0.00
3.10
8.57
Weighted average contractual remaining life (years)
7.32
8.22
2.58
Weighted average share price for awards exercised during the period (£)
6.60
6.68
8.20
1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards.
2 2,315,422 (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.
24,381,791 (Deferred shares) granted on 11 March 2024; 229,896 (Deferred shares) granted as a notional dividend on 1 March 2024; 463,694 (Deferred shares)
granted on 17 June 2024; 86,702 (Deferred shares) granted as a notional dividend on 8 August 2024; 287,533 (Deferred shares) granted on 23 September 2024;
262,600 (Deferred shares) granted on 18 November 2024; 9,707,454 (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 Share awards vested on 34 different dates in 2024 and the closing share prices on the working days prior to the vesting dates ranged from £6.46 to £9.91.
5 The exercise price of Sharesave grants are determined with a 20% discount on the higher of the average closing price of the 5 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.
6 All Sharesave awards are in the form of options. The exercise price of Sharesave options 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.
7 No options or share awards were cancelled in the period.
See pages 176 and 177 of the Standard Chartered PLC Annual Report 2024 for information specific to Directors.
32. 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.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025408
Significant accounting estimates and judgements
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.
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.
2025 2024
Standard Chartered PLC (Company) investments in subsidiary undertakings $million $million
As at 1 January
61,593
60,791
Additions
1
2,823
1,631
Disposal
2
(1,000)
(803)
Other Movements
3
26
(26)
As at 31 December
63,442
61,593
1 Includes internal AT1 issuances of $2,800 million by Standard Chartered Bank (Hong Kong) and $23 million by Standard Chartered Holdings Ltd Limited
(31 December 2024: Includes internal AT1 issuances of $980 million by Standard Chartered Bank, $600 million additional investment in Standard Chartered
Holdings Limited).
2 Includes redemption of AT1 capital of $1,000 million by Standard Chartered Bank (Hong Kong) Limited (31 December 2024: redemption of preference share capital
of $553 million by Standard Chartered Bank Singapore Limited and additional Tier 1 capital of $250 million by Standard Chartered Bank).
3 2025 movement related to reversal of realised translation gain $26 million on redemption of AT1 securities of SGD 750 million ($553 million) upon disposal. 2024
relates to realised translation gain ($26 million) on redemption of AT1 securities of SGD 750 million ($553 million).
A complete list of subsidiary undertakings is included in Note 41.
Annual Report 2025 | Standard Chartered 409
Financial statements
32. Investments in subsidiary undertakings, joint ventures and associates continued
During 2025 the Group disposed of its indirectly held investments in subsidiaries and the gain/loss on disposal were Standard
Chartered Research and Technology India Private Limited (gain: $238 million including translation adjustment loss: $3 million),
Fourtwothree Pte. Ltd (gain: $1.8 million), Standard Chartered Bank Gambia Limited (loss: $5.4 million including translation
adjustment loss: $8 million), Standard Chartered Bank Cameroon S.A. (loss: $5.3 million including translation adjustment loss:
$9 million) and Tawi Fresh Kenya Limited (loss: $0.5 million).
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 $78 billion (31 December 2024:
$63 billion) of which $12 billion (31 December 2024: $8 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.
Contractual requirements
The encumbered assets in the balance sheet of the Group’s subsidiaries are not available for transfer around the Group.
Share of profit from investment in associates and joint ventures comprises:
2025 2024
$million $million
Loss from Investment in Joint Ventures
(13)
(10)
Profit from Investment in Associates
75
118
Total
62
108
2025 2024
Interests in associates and joint ventures $million $million
As at 1 January
1,020
966
Exchange translation difference
64
(40)
Additions
1
370
22
Share of profits
88
108
Dividend received
2
(47)
(36)
Impairment
3
(41)
–
Share of FVOCI and Other reserves
(28)
9
Other movements
–
(9)
As at 31 December
1,426
1,020
1 Includes investment in Jumbotail Technologies Private Limited for $344 million.
2 Includes $45 million capital distribution from Ascenta IV.
3 Includes $15 million impairment of SBI Zodia Custody Company Limited, $26 million relating to Group’s share of Profits from Bohai recognised in Q4 2025.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025410
Material Associates
A complete list of the Group’s interest in associates is included in note 41. Summarised below are those considered material:
Jumbotail Technologies Private Ltd (JTPL)
On acquisition through the SCRTIPL transaction (refer to Note 6), the Group acquired a 46.55 per cent shareholding in JTPL,
a company incorporated in India. The carrying value as of 31 December 2025 was $344 million. JTPL is engaged in business-to-
business e-commerce. As a result of the acquisition, the Group has significant influence over the investee through its shareholding
and accounts for its interest based on the application of the equity method. The Group’s share of the associate’s results since
acquisition are immaterial.
China Bohai Bank
The Group’s ownership percentage in China Bohai Bank is 16.26%.
Although the Group’s investment in China Bohai Bank is less than 20 per cent, it is an associate because of the significant
influence the Group can exercise over its management and financial and operating policies. This influence is exercised through
Board representation and the provision of technical expertise to Bohai. The Group applies the equity method of accounting
for investments in associates.
If the Group did not have significant influence over Bohai, the investment would be measured at fair value rather than the
current carrying value, which is based on the application of the equity method as described in the accounting policy note.
Bohai publishes their results after the Group. As it is impracticable for Bohai to prepare financial statements sooner, the Group
recognises its share of Bohai’s earnings on a three-month lag basis. Therefore, the Group recognised its share of Bohai’s profits
and movements in other comprehensive income from 1 October 2024 through 30 September 2025 (one year of earnings) in
the Group’s consolidated statement of income and consolidated statement of comprehensive income for the year ended
31 December 2025, also considering any known changes or events in the subsequent period from 1 October 2025 to
31 December 2025 that would have materially affected Bohai’s results.
Impairment testing
On 31 December 2025, the listed equity value of Bohai is below the carrying amount of the Group‘s investment in associate.
The Group has assessed that the investment in Bohai remains impaired until there is greater clarity around the macroeconomic
outlook in China and the resumption of dividends by Bohai. The Group also assessed the carrying value of its investment
in Bohai for impairment and, considering that the investment cannot be recognised at a carrying amount higher than its
recoverable amount at the reporting date, has not recognised the Group’s share of Bohai’s profit for the final quarter of 2025
($26 million). Accumulated impairment is $1,485 million as at 31 December 2025 ($Nil impairment charge for the year ended
31 December 2024; $1,459 million of accumulated impairment as at 31 December 2024). The financial forecasts used to estimate
the recoverable amount, a VIU calculation, reflects Group management’s best estimate of Bohai’s future earnings, in line with
current economic conditions and Bohai’s latest reported results.
The carrying value of the Group’s investment in Bohai of $883 million (2024: $738 million) represents the higher of the value
in use and fair value less costs of disposal. The $145 million increase to the carrying amount during 2025 reflects the Group’s
share of profits of $113 million (which is net of AT1 dividends of $6 million and $26 million of impairment); other comprehensive
loss of $35 million and net of foreign exchange profits of $67 million.
The Group’s share of profits and the 2025 impairment are included in ‘Profit from associates and joint ventures’ on the
Consolidated Income Statement.
31.12.25 31.12.24
Bohai $million $million
VIU
883
738
Carrying amount
1
883
738
Market capitalisation
2
360
338
1 The Group’s 16.26% share in the net assets less other equity instruments which the Group does not hold.
2 Number of shares held by the Group multiplied by the quoted share price at period end.
Annual Report 2025 | Standard Chartered 411
Financial statements
32. Investments in subsidiary undertakings, joint ventures and associates continued
Basis of recoverable amount
The impairment test was performed by comparing the recoverable amount of Bohai, determined as the higher of VIU and fair
value less costs to dispose, with its carrying amount.
The VIU is calculated using a dividend discount model (DDM), which estimates the distributable future cashflows to the equity
holders, after adjusting for regulatory capital requirements, for a 5 year period, after which a terminal value (TV) is calculated
based on the Price to Earnings (P/E) exit multiple. The key assumptions in the VIU are as follows:
• Short to medium term projections are based on Group management’s best estimates of future profits available to ordinary
shareholders and have been determined with reference to the latest published financial results, the historical performance
of Bohai and forward looking macro-economic variables for China.
• The projections use available information and include normalised performance over the forecast period, inclusive of:
(i) balance sheet growth assumptions based on the short to medium term GDP growth rates for China; (ii) Net Interest
Income (NII) projecting interest income (primarily the 1-year Loan Prime Rate, 1-year LPR, as basis) and interest expense
(Shanghai Interbank Offered Rate, 3m SHIBOR, as basis) which reference forecasted third-party market interest rates,
adjusted for the observed historic spread against the benchmark rate; (iii) Non-interest income estimated according to
the latest available performance of Bohai, with consideration of the contribution of the constituent parts of the non-interest
income; (iv) Operating expense based on historical performance of Bohai and growth consistent with the short to medium
term GDP growth rates applied to balance sheet projections; (v) ECL assumptions using Bohai’s historical reported ECL,
based on the proportion of ECL from loans and advances to customers and financial investments measured at amortised
cost and FVOCI; and (vi) Statutory tax rate of 25% was applied to the taxable profit of Bohai, after consideration of taxable
and non-taxable elements, consistent with historical reported results;
• The distributable reserves under the DDM are calculated as the difference between the capital resources and the capital
requirements in each of the forecast periods. The calculation assumes a target CET1 capital ratio and risk weighted asset
(RWA) growth consistent with total assets.
• The discount rate applied to these cash flows was estimated with reference to a capital asset pricing model (CAPM), which
includes a long-term risk-free rate, beta, and company risk premium assumptions for Bohai; and
• A long-term average P/E multiple of comparable companies is used to derive a TV after the five year forecast period.
The VIU model was refined during 2025 to include more granular forecasting assumptions for each period. While it is
impracticable for the Group to estimate the impact on future periods, the key changes to the 2025 model are summarised
as follows:
• The Group continues to calculate non-interest income with reference to the five components, i.e., net gains on financial
investments through P/L, net gains on financial investments through OCI, net fee and commission income, net trading
income and other income. All components of non-interest income continue to be grown by the relevant GDP rate for China
over the forecasted period. However, the Group changed the returns forecasted for the financial investments through
P/L over the forecast period, by using the most recent reported returns as the starting point, normalising such returns to a
long-term average over the forecast period. Previously, the return of this component of non-interest income was normalised
to the long-term average from the start of the forecast period (year 1), and then grown according to relevant GDP rate
of China. As a result of this change, the year 1 total forecasted non-interest income is more aligned to the recently reported
results, but due to the normalisation affect, the implied growth is negligible.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025412
The key assumptions used for the VIU calculation:
31.12.25
31.12.24
Post-tax discount rate
1
10.0%
10.5%
Total balance-sheet (and risk weighted assets) growth rate
3.33% – 4.59%
3.77% – 4.52%
P/E multiple used to calculate TV
5.7x
5.6x
Interest income
2
3.12% – 3.20%
3.00% – 3.56%
Interest expense
2
1.78% – 1.85%
1.77% – 2.01%
Non-interest income – financial investments return
2.24% – 3.55%
1.91%
Other non-interest income growth rate
3.33% – 4.59%
3.77% – 4.52%
Operating expense
3
3.33% – 4.59%
3.77% – 4.52%
Expected credit losses as a percentage of customer loans
4
0.77%
0.84% – 1.36%
Expected credit losses as a percentage of financial investments measured at amortised cost
and FVOCI
4
0.57%
0.48% – 1.26%
Effective tax rate
5
12.77% – 12.96%
5.4% – 14.1%
Capital maintenance ratio
8.00%
8.00%
1 Pre-tax discount rate of 15.87 per cent was used in 2025 (2024: 15.31 per cent). The difference in pre-tax discount rates relates to changes in effective tax rate.
2 One-year LPR and three-month SHIBOR rate forecasts were sourced from an external third-party provider, and with a spread derived from long-term historical
averages, are used to produce the interest income and interest expense forecasts.
3 As at 31 December 2025, a growth rate of 4.86 per cent was applied to the FY 2024 operating expense base, the rate being derived from the projected GDP
growth rate for China in 2025. In the prior year the operating expense base was the annualised H1 2024 balance, applying apportioned growth rate assumptions.
The current year approach results in higher forecasted operating expenses.
4 As 31 December 2024 the low end of the range was based on historical loss rates, and the high end of the range, applied in one of the forecast years, included
adjustments for incremental judgemental management overlays. As at 31 December 2025 the ECL assumption is based on historical loss rates with an adjustment
for incremental judgemental management overlays, applied over the five-year forecast period.
5 The tax rates disclosed are the implied effective tax rates (per cent) over the five-year forecast period. The 31 December 2025 tax expense forecasts, calculated
from the taxable profit, considered the long-term historical average of non-taxable income of 17.18 per cent ( 2024: 16.09 per cent) and non-deductible expenses
of 14.56 per cent (2024: 12.53 per cent). A statutory tax rate of 25 per cent was applied to the taxable profit of Bohai, after consideration of taxable and
non-taxable elements.
The table below discloses sensitivities to the key assumptions of Bohai, according to management’s judgement of reasonably
possible changes. Changes were applied to every cash flow year on an individual basis. The percentage change to the
assumptions reflects the level at which management assess the reasonableness of the assumptions used and their impact
on the Value in Use.
Key assumption Key assumption
increase decrease
Increase/ Increase/
(decrease) (decrease)
in VIU in VIU
Sensitivities
1
basis points $ million $ million
Discount Rate
100
(31)
33
Total balance sheet (and risk weighted asset) growth rate
2
100
(40)
38
P/E multiple used to calculate TV
1.0x
112
(112)
Net interest income – Scenario 1
3
10
(19)
19
Net interest income – Scenario 2
4
Various
4
375
(234)
Non-interest income – financial investments return
100
295
(295)
Other non-interest income growth rate
100
54
(52)
Operating expense
100
(70)
68
Expected credit losses as a percentage of customer loans
10
(147)
147
Expected credit losses as a percentage of financial investments measured at amortised
cost and FVOCI
10
(86)
85
Tax expense
5
300
27
(28)
Capital maintenance ratio
50
(25)
25
1 For comparative information as at 31 December 2024, refer to page 365 of the Group’s Annual Report 2024.
2 The sensitivity reflects the net impact of changing this assumption in the VIU, which links to various elements in forecast profit and regulatory capital adjustment.
3 This scenario assumes that one-year LPR and three-month SHIBOR increase or decrease by the same amount, to demonstrate the impact on the carrying amount
of a similar scenario.
4 An alternative scenario is that Bohai’s asset yield and liability cost move in the same direction, albeit by different amounts, through the five-year forecast period
including the terminal value. The key assumption increase sensitivity assumes that asset yields increase by 25 basis points and liability costs increase by 10 basis
points in each period. The key assumption decrease sensitivity assumes that asset yields decrease by 25 basis points and liability costs decrease by 15 basis points
in each period.
5 Changes in tax expense applied only to both average percentages of non-taxable income (17.18 per cent) and non-deductible expenses (14.56 per cent).
Refer to footnote 5 of the key assumptions table for more details.
Annual Report 2025 | Standard Chartered 413
Financial statements
32. Investments in subsidiary undertakings, joint ventures and associates continued
The following table sets out the summarised financial statements of China Bohai Bank prior to the Group’s share of the
associate’s profit being applied:
30.09.25 30.09.24
$million $million
Total assets
272,513
244,510
Total liabilities
256,337
229,259
Operating income
1
3,472
3,583
Net profit
1
762
681
Other comprehensive income
1
(219)
69
1 This represents twelve months of earnings (1 October to 30 September).
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025414
33. 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.
2025 2024
$million $million
Shipping lease
17
14
Principal and other structured finance
592
474
Total
609
488
Interests in unconsolidated structured entities: Unconsolidated structured entities are all structured entities that are not
controlled by the Group. The Group enters 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.
Annual Report 2025 | Standard Chartered 415
Financial statements
Financial statements
Notes to the financial statements
33. Structured entities continued
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.
2025
2024
Asset-backed Structured Principal Other Asset-backed Structured Principal Other
securities Lending Finance Finance funds activities Total securities Lending Finance 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
2,143
457
200
91
–
2,891
1,222
255
178
124
–
1,779
Loans and
advances/
Investment
securities at
amortised cost
15,312
22,462
14,201
–
107
52,082
16,305
16,735
12,656
–
97
45,793
Investment
securities (fair
value through
other
comprehensive
income)
1,227
–
–
–
–
1,227
2,371
–
–
–
–
2,371
Other assets
–
8
12
–
–
20
–
–
1
–
–
1
Total assets
18,682
22,927
14,413
91
107
56,220
19,898
16,990
12,835
124
97
49,944
Off-balance sheet
151
17,128
7,471
24
32
24,806
–
11,075
6,901
63
73
18,112
Group’s maximum
exposure to loss
18,833
40,055
21,884
115
139
81,026
19,898
28,065
19,736
187
170
68,056
Total assets of
structured entities
183,418
24,153
17,802
186
–
225,559
129,864
17,579
14,758
226
–
162,427
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 transactions 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.
Standard Chartered | Annual Report 2025416
• 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.
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.
34. 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
(740)
(815)
–
–
Interest expense on subordinated liabilities
552
744
471
578
Interest expense on senior debt securities in issue
2,392
2,584
1,777
1,855
Other non-cash items
(152)
(122)
(3)
(12)
Net (gain)/loss on sale of business
(242)
210
–
–
Pension costs for defined benefit schemes
125
62
–
–
Share-based payment costs
399
334
–
–
Impairment losses on loans and advances and other credit risk provisions
672
547
–
–
Dividend income from subsidiaries
–
–
(5,160)
(4,101)
Other impairment
65
588
–
–
Gain on disposal of property, plant and equipment
(133)
(23)
–
–
Loss on disposal of FVOCI and AMCST financial assets
53
264
–
–
Depreciation and amortisation
1,170
1,126
–
–
Fair value changes taken to income statement
(2,027)
(2,140)
(53)
9
Foreign Currency revaluation
(87)
(583)
(115)
1
Profit from associates and joint ventures
(62)
(108)
–
–
Total
1,985
2,668
(3,083)
(1,670)
Change in operating assets
2025 2024 2025 2024
$million $million $million $million
Decrease/(increase) in derivative financial instruments
16,161
(31,939)
(127)
(32)
(Increase)/decrease in debt securities, treasury bills and equity shares
held at fair value through profit or loss
(3,900)
(25,823)
4,198
376
Increase in loans and advances to banks and customers
(11,949)
(13,776)
–
–
Net decrease/(increase) in prepayments and accrued income
189
(224)
–
–
Net (increase)/decrease in other assets
(28,629)
5,331
(5,305)
338
Total
(28,128)
(66,431)
(1,234)
682
Change in operating liabilities
2024
2025 2024 2025
(Restated)
1
$million $million $million $million
(Decrease)/ increase in derivative financial instruments
(14,304)
26,951
(288)
(39)
Net increase in deposits from banks, customer accounts, debt securities
in issue, Hong Kong notes in circulation and short positions
71,370
7,253
2,083
1,340
Increase in accruals and deferred income
340
79
98
101
Net increase/ (decrease) in other liabilities
513
5,090
(129)
(1,574)
Increase in amount due to parents/subsidiaries/other related parties
–
–
190
35
Total
57,919
39,373
1,954
(137)
1 Prior Period has been restated to exclude Debt Securities in Issue designated at fair value through P&L. Net increase in deposits from banks, customer accounts,
debt securities in issue, Hong Kong notes in circulation and short positions for 2024 has been restated by $727 million.
Annual Report 2025 | Standard Chartered 417
Financial statements
Financial statements
Notes to the financial statements
34. 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
10,536
12,216
10,491
12,123
Interest paid
(421)
(519)
(410)
(505)
Repayment
(2,174)
(1,517)
(2,174)
(1,517)
Foreign exchange movements
345
(191)
346
(190)
Fair value changes from hedge accounting
275
48
174
97
Accrued interest and Others
410
499
391
483
Closing balance
8,971
10,536
8,818
10,491
(Restated)
1
Senior debt (including accrued interest):
Opening balance
40,576
41,350
32,835
31,525
Proceeds from the issue
11,583
11,044
7,955
7,422
Interest paid
(1,892)
(1,366)
(1,576)
(1,367)
Repayment
(9,364)
(11,185)
(4,752)
(6,222)
Foreign exchange movements
692
(454)
664
(343)
Fair value changes from hedge accounting
403
42
663
321
Accrued interest and Others
2,001
1,145
1,700
1,499
Closing balance
43,999
40,576
37,489
32,835
1 Prior Year has been restated to include Debt Securities in Issue designated at fair value through P&L. Opening balance and Closing balance has increased by
$14,007 million and $14,175 million respectively. Other related changes include increases in proceeds from issue of $3,535 million, interest paid of $659 million,
repayment of $3,603 million, fair value changes from hedge accounting of $315 million and accrued interest and others of $675 million.
Senior debt is presented as part of debt securities in issue in the Group and Company balance sheets. Of the $11.6 billion
proceeds from issue of senior debt issued by the Group, $7.9 billion relates to senior debt issued by the Company and $3.7 billion
relates to senior debt issued by the Company’s subsidiaries.
35. 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’.
Group
Company
2025 2024 2025 2024
$million $million $million $million
Cash and balances at central banks
77,746
63,447
–
–
Less: restricted balances
(11,630)
(7,799)
–
–
Treasury bills and other eligible bills
15,294
5,472
–
–
Loans and advances to banks
8,973
9,654
–
–
Loans and advances to Customers
13,335
18,120
–
–
Investments
1,204
1,034
–
–
Amounts owed by and due to subsidiary undertakings
–
–
15,226
11,601
Total
104,922
89,928
15,226
11,601
Standard Chartered | Annual Report 2025418
36. Related party transactions
Directors and officers
Details of directors’ remuneration and interests in shares are disclosed in the Directors’ remuneration report.
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.
2025
1
2024
$million $million
Salaries, allowances and benefits in kind
47
41
Share-based payments
40
38
Bonuses paid or receivable
–
7
Termination benefits
–
2
Total
87
88
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
At 31 December 2025, the total amounts to be disclosed under the Companies Act 2006 (the Act) and the Listing Rules
of the Hong Kong Stock Exchange Limited (Hong Kong Listing Rules) about loans to directors were as follows:
2025 2024
$million $million
Advances and credits
4
–
Deposits
32
–
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. The loan transactions provided to the directors of Standard Chartered
PLC were a connected transaction under Chapter 14A of the Hong Kong Listing Rules. It was fully exempt as financial assistance
under Rule 14A.87(1), as it was provided in our ordinary and usual course of business and on normal commercial terms.
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, the rules
of the UK Listing Authority or the Hong Kong Listing Rules.
Details of non-revenue transactions with Temasek Holdings (Private) Limited are set out on page 212.
Company
The Company has received $1,724 million (31 December 2024: $1,838 million) of net interest income from its subsidiaries.
The Company issues debt externally and lends proceeds to Group companies.
The Company has an agreement with Standard Chartered Bank that in the event of Standard Chartered Bank defaulting
on its debt coupon interest payments, where the terms of such debt requires it, the Company shall issue shares as settlement
for non-payment of the coupon interest.
2025
2024
Standard Standard
Chartered Bank Chartered Bank
Standard (Hong Kong) Standard (Hong Kong)
Chartered Bank Limited
Others
1
Chartered Bank Limited
Others
1
$million $million $million $million $million $million
Assets
Due from subsidiaries
14,816
141
270
11,318
135
147
Derivative financial instruments
228
–
–
98
–
–
Debt securities
16,605
5,875
904
18,124
5,512
1,221
Total assets
31,649
6,016
1,174
29,540
5,647
1,368
Liabilities
Due to subsidiaries
225
–
–
–
–
–
Derivative financial instruments
777
26
–
1,042
23
–
Total liabilities
1,002
26
–
1,042
23
–
1 Others include Standard Chartered Bank (Singapore) Limited, Standard Chartered Holdings Limited and Standard Chartered I H Limited.
Annual Report 2025 | Standard Chartered 419
Financial statements
Financial statements
Notes to the financial statements
36. Related party transactions continued
Associate and joint ventures
2025 2024
$million $million
Assets
Financial Assets held at FVTPL
10
–
Derivative assets
5
5
Total assets
15
5
Liabilities
Deposits
416
209
Derivative liabilities
3
4
Total liabilities
419
213
Loan commitments and other guarantees¹
107
14
1 The maximum loan commitments and other guarantees during the period were $107 million (31 December 2024: $14 million).
37. Post balance sheet events
A share buyback for up to a maximum consideration of $1.5 billion has been declared by the directors after 31 December 2025.
This will reduce the number of ordinary shares in issue by cancelling the repurchased shares.
A final dividend for 2025 of 49 cents per ordinary share was declared by the directors after 31 December 2025.
38. 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 and its associates (together Ernst & Young 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 Group statutory audit
36.9
31.3
Of which fees for the audit of Standard Chartered Bank Group
27.3
23.2
Fees payable to EY for other services provided to the SC PLC Group:
Audit of Standard Chartered PLC subsidiaries
14.5
13.5
Total audit fees
51.4
44.8
Audit-related assurance services
7.7
6.6
Other assurance services
5.8
5.4
Other non-audit services
1.3
0.4
Transaction related services
0.6
0.6
Total non-audit fees
15.4
13.0
Total fees payable
66.8
57.8
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 Ernst & Young 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 Ernst & Young LLP for issuing comfort letters
Expenses incurred in respect of their role as auditor, were reimbursed to EY LLP $1 million (2024: $1 million).
Standard Chartered | Annual Report 2025420
39. Standard Chartered PLC (Company)
Classification and measurement of financial instruments
Financial assets
2025 2024
Derivatives
held for
hedging
$million
Amortised
cost
$million
Non-trading
mandatorily
at fair value
through
profit or loss
$million
Total
$million
Derivatives
held for
hedging
$million
Amortised
cost
$million
Non-trading
mandatorily
at fair value
through
profit or loss
$million
Total
$million
Financial assets held at fair value through
profit or loss
Investment securities – – 18,475
1
18,475 – – 19,049¹ 19,049
Derivatives 239 – – 239 112 – – 112
Investment securities – 4,904 – 4,904 – 5,808 – 5,808
Amounts owed by subsidiary undertakings – 15,226 – 15,226 – 11,601 – 11,601
Total 239 20,130 18,475 38,844 112 17,409 19,049 36,570
1 Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Limited, Standard Chartered Bank (China) Limited and Standard Chartered Bank (Singapore)
Limited issued Loss Absorbing Capacity (LAC) eligible debt securities.
Instruments classified as amortised cost, which include investment securities and amounts owed by subsidiary undertakings,
arerecorded in stage 1 for the recognition of expected credit losses.
Derivatives held for hedging are held at fair value and are classified as Level 2 and Level 3 while the counterparty is Standard
Chartered Bank and external counterparties.
Investment securities comprise debt securities held at amortised cost issued by Standard Chartered Bank and SC Ventures
Holdings Limited and have a fair value that approximates to carrying value of $4,904 million (31 December 2024: $5,808 million).
In 2025 and 2024, amounts owed by subsidiary undertakings have a fair value that approximates to carrying value.
Financial liabilities
2025 2024
Derivatives
held for
hedging
$million
Amortised
cost
$million
Designated
at fair value
through
profit or loss
$million
Total
$million
Derivatives
held for
hedging
$million
Amortised
cost
$million
Designated
at fair value
through
profit or loss
$million
Total
$million
Financial liabilities held at fair value
through profit or loss
Debt securities in issue – – 15,645 15,645 – – 14,175 14,175
Subordinated liabilities and other
borrowed funds – – 1,853 1,853 – – 2,677 2,677
Derivatives 777 – – 777 1,065 – – 1,065
Debt securities in issue – 21,231 – 21,231 – 18,167 – 18,167
Subordinated liabilities and other
borrowed funds – 6,831 – 6,831 – 7,661 – 7,661
Amounts owed to subsidiary undertakings – 225 – 225 – 35 – 35
Total 777 28,287 17,498 46,562 1,065 25,863 16,852 43,780
Derivatives held for hedging are held at fair value and are classified as Level 2 while the counterparty is Standard Chartered
Bank and Standard Chartered Bank (Hong Kong) Limited.
The fair value of debt securities in issue held at amortised cost is $21,801 million (2024: $18,313 million).
The fair value of subordinated liabilities and other borrowed funds held at amortised cost is $6,668 million (2024: $7,336 million).
Derivative financial instruments
Derivatives
2025 2024
Notional principal
amounts
$million
Assets
$million
Liabilities
$million
Notional principal
amounts
$million
Assets
$million
Liabilities
$million
Foreign exchange derivative contracts:
Forward foreign exchange 8,819 46 23 9,077 46 30
Currency swaps 72 – – 545 20 –
Interest rate derivative contracts:
Swaps 13,949 182 754 14,863 32 1,035
Credit derivative contracts 3,690 11 – 4,030 14 –
Total 26,530 239 777 28,515 112 1,065
Annual Report 2025 | Standard Chartered 421
Financial statements
Financial statements
Notes to the financial statements
39. Standard Chartered PLC (Company) continued
Credit risk
2025
$million
2024
$million
Derivative financial instruments 239 112
Debt securities 23,379 24,857
Amounts owed by subsidiary undertakings 15,226 11,601
Total 38,844 36,570
In 2025 and 2024, amounts owed by subsidiary undertakings were neither past due nor impaired; the Company had
noindividually impaired loans.
In 2025 and 2024, the Company had no impaired debt securities. The debt securities held by the Company are issued
byStandard Chartered Bank, Standard Chartered Bank (Hong Kong) Limited, Standard Chartered Bank (China) Limited
andStandard Chartered Bank (Singapore) Limited, subsidiary undertakings with credit ratings of A+.
There is no material expected credit loss on these instruments as they are Stage 1 assets, and of a high quality.
Liquidity risk
The following table analyses the residual contractual maturity of the assets and liabilities of the Company on a discounted basis:
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
Derivative financial instruments 133 – 11 19 1 – 37 38 239
Investment securities 1,498 – 36 1 – – 8,633 13,211 23,379
Amount owed by subsidiary undertakings 2,569 679 867 1,506 591 596 4,847 3,571 15,226
Investments in subsidiary undertakings – – – – – – – 63,442 63,442
Total assets 4,200 679 914 1,526 592 596 13,517 80,262 102,286
Liabilities
Derivative financial instruments 17 – 16 – – 21 191 532 777
Senior debt – – 1,269 – – 5,315 13,600 16,692 36,876
Amount owed to subsidiary undertakings 225 – – – – – – – 225
Other liabilities 370 741 155 9 3 – – – 1,278
Subordinated liabilities and other
borrowedfunds 2 43 15 154 – 1,457 753 6,260 8,684
Total liabilities 614 784 1,455 163 3 6,793 14,544 23,484 47,840
Net liquidity gap 3,586 (105) (541) 1,363 589 (6,197) (1,027) 56,778 54,446
Standard Chartered | Annual Report 2025422
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
Derivative financial instruments 45 23 – 20 – 24 – – 112
Investment securities – – – – – 1,725 7,205 15,927 24,857
Amount owed by subsidiary undertakings 1,763 1,536 1,931 110 53 2,355 2,695 1,158 11,601
Investments in subsidiary undertakings – – – – – – – 61,593 61,593
Other assets – – – – – – – – –
Total assets 1,808 1,559 1,931 130 53 4,104 9,900 78,678 98,163
Liabilities
Derivative financial instruments 30 – 22 – – 53 147 813 1,065
Senior debt – – 992 – – 4,979 12,887 13,484 32,342
Amount owed to subsidiary undertakings 35 – – – – – – – 35
Other liabilities 304 512 126 14 3 – – – 959
Subordinated liabilities and other
borrowedfunds 2 46 14 187 – 376 1,995 7,718 10,338
Total liabilities 371 558 1,154 201 3 5,408 15,029 22,015 44,739
Net liquidity gap 1,437 1,001 777 (71) 50 (1,304) (5,129) 56,663 53,424
Financial liabilities on an undiscounted basis
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
Derivative financial instruments 265 – 16 – – 22 206 325 834
Debt securities in issue 314 237 1,654 449 315 6,939 17,037 19,424 46,369
Subordinated liabilities and other
borrowed funds 33 116 36 164 – 1,541 889 11,538 14,317
Other liabilities 33 1,245 – – – – – – 1,278
Total liabilities 645 1,598 1,706 613 315 8,502 18,132 31,287 62,798
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
Derivative financial instruments 30 – 22 – – 53 147 813 1,065
Debt securities in issue 276 151 1,355 368 308 6,333 15,780 15,635 40,206
Subordinated liabilities and other borrowed
funds 33 134 34 206 – 407 2,261 13,473 16,548
Other liabilities – 959 – – – – – – 959
Total liabilities 339 1,244 1,411 574 308 6,793 18,188 29,921 58,778
Annual Report 2025 | Standard Chartered 423
Financial statements
Financial statements
Notes to the financial statements
40. Re-presentation tables of Credit risk disclosures by key geography
As set out in note 1 to the financial statements, prior period amounts for certain Credit risk tables (required by IFRS 7 – Financial
Instruments: Disclosures) within the Risk review on pages 233 to 276 were also re-presented for a change in accounting policy for
the presentation of the Group’s geographic disclosures to align to information reported to key management personnel and to
incorporate loans reported in Central & other items into the tables on pages 238 and 244. The following tables provide
a reconciliation between the tables previously disclosed at 31 December 2024 and the re-presented tables in these
financial statements.
Loans and advances analysis by client segment, credit quality and key geography
– Corporate & Investment Banking and Central & other items (page 244)
Published table as of 31 December 2024
Corporate & Investment Banking and Central & other items
2024
Gross
Credit Impairment
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Higher Higher Total
Strong Satisfactory Total Strong Satisfactory Risk Total Defaulted Total Strong Satisfactory Total Strong Satisfactory Risk Total Impaired Total Coverage
$million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million %
Hong Kong
32,552
12,079
44,631
230
1,539
64
1,833
1,272
1,272
(8)
(8)
(16)
(33)
(107)
(9)
(149)
(1,157)
(1,157)
(2.8)%
Corporate
Lending
14,429
6,180
20,609
225
1,329
64
1,618
1,260
1,260
(5)
(4)
(9)
(33)
(102)
(9)
(144)
(1,157)
(1,157)
(5.6)%
Non Corporate
Lending
1
4,567
2,730
7,297
4
206
–
210
12
12
(1)
(3)
(4)
–
(5)
–
(5)
–
–
(0.1)%
Banks
13,556
3,169
16,725
1
4
–
5
–
–
(2)
(1)
(3)
–
–
–
–
–
–
(0.0)%
Singapore
31,129
7,769
38,898
500
955
35
1,490
407
407
–
(8)
(8)
(4)
(14)
–
(18)
(196)
(196)
(0.5)%
Corporate
Lending
7,333
4,003
11,336
469
594
35
1,098
335
335
–
(6)
(6)
(4)
(14)
–
(18)
(195)
(195)
(1.7)%
Non Corporate
Lending
1
19,348
567
19,915
29
358
–
387
–
–
–
(1)
(1)
–
–
–
–
–
–
(0.0)%
Banks
4,448
3,199
7,647
2
3
–
5
72
72
–
(1)
(1)
–
–
–
–
(1)
(1)
(0.0)%
China
10,380
2,794
13,174
49
133
14
196
171
171
(3)
(1)
(4)
–
–
–
–
(86)
(86)
(0.7)%
Corporate
Lending
4,933
2,193
7,126
49
133
14
196
168
168
(1)
(1)
(2)
–
–
–
–
(83)
(83)
(1.1)%
Non Corporate
Lending
1
3,241
363
3,604
–
–
–
–
–
–
(1)
–
(1)
–
–
–
–
–
–
(0.0)%
Banks
2,206
238
2,444
–
–
–
–
3
3
(1)
–
(1)
–
–
–
–
(3)
(3)
(0.2)%
UK
11,029
3,939
14,968
48
479
3
530
316
316
(10)
(4)
(14)
–
(27)
(6)
(33)
(258)
(258)
(1.9)%
Corporate
Lending
325
871
1,196
47
479
1
527
258
258
(9)
(3)
(12)
–
(27)
(6)
(33)
(237)
(237)
(14.2)%
Non Corporate
Lending
1
8,690
982
9,672
1
–
–
1
57
57
(1)
(1)
(2)
–
–
–
–
(21)
(21)
(0.2)%
Banks
2,014
2,086
4,100
–
–
2
2
1
1
–
–
–
–
–
–
–
–
–
(0.0)%
US
16,244
4,456
20,700
92
433
33
558
31
31
(4)
(1)
(5)
(1)
(1)
–
(2)
(3)
(3)
(0.0)%
Corporate
Lending
5,426
2,761
8,187
77
322
–
399
28
28
(3)
(1)
(4)
(1)
(1)
–
(2)
–
–
(0.1)%
Non Corporate
Lending
1
9,688
123
9,811
15
79
–
94
3
3
(1)
–
(1)
–
–
–
–
(3)
(3)
(0.0)%
Banks
1,130
1,572
2,702
–
32
33
65
–
–
–
–
–
–
–
–
–
–
–
(0.0)%
Others
42,171
19,370
61,541
318
3,251
819
4,389
2,460
2,460
(10)
(33)
(43)
(3)
(70)
(29)
(102)
(1,483)
(1,483)
(2.4)%
Corporate
Lending
24,835
14,075
38,910
291
2,048
516
2,855
2,221
2,221
(6)
(26)
(32)
(3)
(38)
(28)
(69)
(1,333)
(1,333)
(3.3)%
Non Corporate
Lending
1
9,451
3,590
13,041
22
1,117
153
1,292
232
232
–
(6)
(6)
–
(31)
(1)
(32)
(149)
(149)
(1.3)%
Banks
7,885
1,705
9,590
5
86
150
241
7
7
(4)
(1)
(5)
–
(1)
–
(1)
(1)
(1)
(0.1)%
Total
143,505
50,407
193,912
1,237
6,790
968
8,996
4,657
4,657
(35)
(55)
(90)
(41)
(219)
(44)
(304)
(3,183)
(3,183)
(1.7)%
1 Refer to the equivalent table on page 244 of the Risk Review section.
Standard Chartered | Annual Report 2025424
Adjustment table
Corporate & Investment Banking and Central & other items
2024
Gross
Credit Impairment
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Higher Higher Total
Strong Satisfactory Total Strong Satisfactory Risk Total Defaulted Total Strong Satisfactory Total Strong Satisfactory Risk Total Impaired Total Coverage
$million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million %
Hong Kong
2,909
–
2,909
–
–
–
–
(36)
(36)
–
–
–
–
–
–
–
–
–
–
Corporate
Lending
1,199
–
1,199
–
–
–
–
(36)
(36)
–
–
–
–
–
–
–
–
–
–
Non Corporate
Lending
1
41
–
41
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Banks
1,669
–
1,669
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Singapore
(2,985)
(993)
(3,978)
–
(64)
–
(64)
70
70
–
–
–
–
–
–
–
–
–
–
Corporate
Lending
(2,212)
(454)
(2,666)
–
(64)
–
(64)
70
70
–
–
–
–
–
–
–
–
–
–
Non Corporate
Lending
1
(808)
(524)
(1,332)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Banks
35
(15)
20
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
China
10
50
60
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Corporate
Lending
(1)
50
49
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Non Corporate
Lending
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Banks
11
–
11
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
UK
(10,526)
(2,046)
(12,572)
–
(1,461)
(138)
(1,599)
(440)
(440)
–
–
–
–
–
–
–
–
–
–
Corporate
Lending
(2,006)
(1,211)
(3,217)
–
(954)
(26)
(980)
(400)
(400)
–
–
–
–
–
–
–
–
–
–
Non Corporate
Lending
1
(8,350)
(771)
(9,121)
–
(507)
(112)
(619)
(40)
(40)
–
–
–
–
–
–
–
–
–
–
Banks
(170)
(64)
(234)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
US
537
56
593
–
–
–
–
27
27
–
–
–
–
–
–
–
–
–
–
Corporate
Lending
92
56
148
–
–
–
–
27
27
–
–
–
–
–
–
–
–
–
–
Non Corporate
Lending
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Banks
445
–
445
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Others
10,055
2,933
12,988
–
1,525
138
1,663
379
379
–
–
–
–
–
–
–
–
–
–
Corporate
Lending
2,926
1,559
4,485
–
1,018
26
1,044
338
338
–
–
–
–
–
–
–
–
–
–
Non Corporate
Lending
1
9,119
1,294
10,413
–
507
112
619
41
41
–
–
–
–
–
–
–
–
–
–
Banks
(1,990)
80
(1,910)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1 Refer to the equivalent table on page 244 of the Risk Review section.
Annual Report 2025 | Standard Chartered 425
Financial statements
40. Re-presentation tables of Credit risk disclosures by key geography continued
Re–presented table as of 31 December 2024
Corporate & Investment Banking and Central & other items
1
2024
Gross
Credit Impairment
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Higher Higher Total
Strong Satisfactory Total Strong Satisfactory Risk Total Defaulted Total Strong Satisfactory Total Strong Satisfactory Risk Total Impaired Total Coverage
$million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million $million %
Hong Kong
29,643
12,079
41,722
230
1,539
64
1,833
1,308
1,308
(8)
(8)
(16)
(33)
(107)
(9)
(149)
(1,157)
(1,157)
(2.9)%
Corporate
Lending
13,230
6,180
19,410
225
1,329
64
1,618
1,296
1,296
(5)
(4)
(9)
(33)
(102)
(9)
(144)
(1,157)
(1,157)
(5.9)%
Non Corporate
Lending
4,526
2,730
7,256
4
206
–
210
12
12
(1)
(3)
(4)
–
(5)
–
(5)
–
–
(0.1)%
Banks
11,887
3,169
15,056
1
4
–
5
–
–
(2)
(1)
(3)
–
–
–
–
–
–
(0.0)%
Singapore
34,114
8,762
42,876
500
1,019
35
1,554
337
337
–
(8)
(8)
(4)
(14)
–
(18)
(196)
(196)
(0.5)%
Corporate
Lending
9,545
4,457
14,002
469
658
35
1,162
265
265
–
(6)
(6)
(4)
(14)
–
(18)
(195)
(195)
(1.4)%
Non Corporate
Lending
20,156
1,091
21,247
29
358
–
387
–
–
–
(1)
(1)
–
–
–
–
–
–
(0.0)%
Banks
4,413
3,214
7,627
2
3
–
5
72
72
–
(1)
(1)
–
–
–
–
(1)
(1)
(0.0)%
China
10,370
2,744
13,114
49
133
14
196
171
171
(3)
(1)
(4)
–
–
–
–
(86)
(86)
(0.7)%
Corporate
Lending
4,934
2,143
7,077
49
133
14
196
168
168
(1)
(1)
(2)
–
–
–
–
(83)
(83)
(1.1)%
Non Corporate
Lending
3,241
363
3,604
–
–
–
–
–
–
(1)
–
(1)
–
–
–
–
–
–
(0.0)%
Banks
2,195
238
2,433
–
–
–
–
3
3
(1)
–
(1)
–
–
–
–
(3)
(3)
(0.2)%
UK
21,555
5,985
27,540
48
1,940
141
2,129
756
756
(10)
(4)
(14)
–
(27)
(6)
(33)
(258)
(258)
(1.0)%
Corporate
Lending
2,331
2,082
4,413
47
1,433
27
1,507
658
658
(9)
(3)
(12)
–
(27)
(6)
(33)
(237)
(237)
(4.3)%
Non Corporate
Lending
17,040
1,753
18,793
1
507
112
620
97
97
(1)
(1)
(2)
–
–
–
–
(21)
(21)
(0.1)%
Banks
2,184
2,150
4,334
–
–
2
2
1
1
–
–
–
–
–
–
–
–
–
(0.0)%
US
15,707
4,400
20,107
92
433
33
558
4
4
(4)
(1)
(5)
(1)
(1)
–
(2)
(3)
(3)
(0.0)%
Corporate
Lending
5,334
2,705
8,039
77
322
–
399
1
1
(3)
(1)
(4)
(1)
(1)
–
(2)
–
–
(0.1)%
Non Corporate
Lending
9,688
123
9,811
15
79
–
94
3
3
(1)
–
(1)
–
–
–
–
(3)
(3)
(0.0)%
Banks
685
1,572
2,257
–
32
33
65
–
–
–
–
–
–
–
–
–
–
–
(0.0)%
Others
32,116
16,437
48,553
318
1,726
681
2,725
2,081
2,081
(10)
(33)
(43)
(3)
(70)
(29)
(102)
(1,483)
(1,483)
(3.1)%
Corporate
Lending
21,909
12,516
34,425
291
1,030
490
1,811
1,883
1,883
(6)
(26)
(32)
(3)
(38)
(28)
(69)
(1,333)
(1,333)
(3.8)%
Non Corporate
Lending
332
2,296
2,628
22
610
41
673
191
191
–
(6)
(6)
–
(31)
(1)
(32)
(149)
(149)
(5.4)%
Banks
9,875
1,625
11,500
5
86
150
241
7
7
(4)
(1)
(5)
–
(1)
–
(1)
(1)
(1)
(0.1)%
Total
143,505
50,407
193,912
1,237
6,790
968
8,995
4,657
4,657
(35)
(55)
(90)
(41)
(219)
(44)
(304)
(3,183)
(3,183)
(1.7)%
1 Refer to the equivalent table on page 244 of the Risk Review section.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025426
Industry analysis of loans and advances by key geography – Corporate & Investment
Banking and Central & other items (page 260)
Published table as of 31 December 2024 (Corporate & Investment Banking)
2024
Hong Kong China Singapore UK US Other Total
Amortised Cost $million $million $million $million $million $million $million
Industry:
Energy
2,200
59
1,552
1,744
1,750
5,551
12,856
Manufacturing
4,077
4,200
1,463
389
2,307
8,431
20,867
Financing, insurance and non–banking
3,674
3,486
1,893
4,005
9,900
12,696
35,654
Transport, telecom and utilities
5,131
662
3,106
1,084
936
7,685
18,604
Food and household products
1,038
428
1,414
962
685
4,202
8,729
Commercial Real estate
4,512
334
1,404
1,039
1,650
4,994
13,933
Mining and Quarrying
608
606
847
1,426
224
2,170
5,881
Consumer durables
2,780
293
466
84
537
2,046
6,206
Construction
318
156
372
96
247
1,268
2,457
Trading Companies & Distributors
95
103
106
31
40
277
652
Government
2,576
117
219
169
4
4,352
7,437
Other
1,419
563
786
377
233
1,650
5,028
Net Loans and advances to Customers
28,428
11,007
13,628
11,406
18,513
55,322
138,304
Net Loans and advances to Banks
16,727
2,443
7,721
4,103
2,766
9,833
43,593
Adjustment table (Corporate & Investment Banking and Central & other items)
2024
Hong Kong China Singapore UK US Other Total
Amortised Cost $million $million $million $million $million $million $million
Industry:
Energy
1,164
(1)
(1,537)
(1,922)
(21)
2,313
(4)
Manufacturing
–
–
(192)
(271)
–
463
–
Financing, insurance and non–banking
41
–
(508)
(8,277)
–
8,718
(26)
Transport, telecom and utilities
–
50
(660)
(1,512)
56
2,060
(6)
Food and household products
–
–
(58)
(189)
–
247
–
Commercial Real estate
–
–
(17)
(68)
75
10
–
Mining and Quarrying
–
–
(19)
(218)
10
227
–
Consumer durables
–
–
(38)
(70)
56
51
(1)
Construction
–
–
(110)
–
–
110
–
Trading Companies & Distributors
–
–
–
–
–
–
–
Government
(1,260)
–
(20,047)
(1,502)
–
760
(22,049)
Other
–
–
(30)
(347)
–
372
(5)
Net Loans and advances to Customers
(55)
49
(23,216)
(14,376)
176
15,331
(22,091)
Net Loans and advances to Banks
1,669
11
20
(234)
444
(1,910)
–
Annual Report 2025 | Standard Chartered 427
Financial statements
40. Re-presentation tables of Credit risk disclosures by key geography continued
Re–presented table as of 31 December 2024
(Corporate & Investment Banking and Central & other items)
2024
1
Hong Kong China Singapore UK US Other Total
Amortised Cost $million $million $million $million $million $million $million
Industry:
Energy
1,036
60
3,089
3,666
1,771
3,238
12,860
Manufacturing
4,077
4,200
1,655
660
2,307
7,968
20,867
Financing, insurance and non–banking
3,633
3,486
2,401
12,282
9,900
3,978
35,680
Transport, telecom and utilities
5,131
612
3,766
2,596
880
5,625
18,610
Food and household products
1,038
428
1,472
1,151
685
3,955
8,729
Commercial Real estate
4,512
334
1,421
1,107
1,575
4,984
13,933
Mining and Quarrying
608
606
866
1,644
214
1,943
5,881
Consumer durables
2,780
293
504
154
481
1,995
6,207
Construction
318
156
482
96
247
1,158
2,457
Trading Companies & Distributors
95
103
106
31
40
277
652
Government
3,836
117
20,266
1,671
4
3,592
29,486
Other
1,419
563
816
724
233
1,278
5,033
Net Loans and advances to Customers
28,483
10,958
36,844
25,782
18,337
39,991
160,395
Net Loans and advances to Banks
15,058
2,432
7,701
4,337
2,322
11,743
43,593
1 Refer to the equivalent table on the page 260 of the Risk Review section.
Forborne and other modified loans by key geography (page 255)
Published table as of 31 December 2024
2024
Hong Kong Korea China Singapore UK US Other Total
Amortised cost $million $million $million $million $million $million $million $million
Performing forborne loans
2
8
–
3
–
–
39
52
Stage 3 forborne loans
118
18
77
25
78
1
415
732
Net forborne loans
120
26
77
28
78
1
454
784
Adjustment table
2024
Hong Kong Korea China Singapore UK US Other Total
Amortised cost $million $million $million $million $million $million $million $million
Performing forborne loans
–
–
–
–
–
–
–
–
Stage 3 forborne loans
8
(7)
(8)
–
(3)
–
10
–
Net forborne loans
8
(7)
(8)
–
(3)
–
10
–
Re–presented table as of 31 December 2024
2024
1
Hong Kong Korea China Singapore UK US Other Total
Amortised cost $million $million $million $million $million $million $million $million
Performing forborne loans
2
8
–
3
–
–
39
52
Stage 3 forborne loans
110
25
85
25
81
1
405
732
Net forborne loans
112
33
85
28
81
1
444
784
1 Refer to the equivalent table on the page 255 of the Risk Review section.
Financial statements
Notes to the financial statements
Standard Chartered | Annual Report 2025428
41. Related undertakings of the Group
As at 31 December 2025, the Group’s interests in related undertakings are disclosed below. Unless otherwise stated, the
share capital disclosed comprises ordinary or common shares which are held by subsidiaries of the Group. Standard Chartered
Bank (Hong Kong) Limited, Standard Chartered Funding (Jersey) Limited, Stanchart Nominees Limited, Standard Chartered
Holdings Limited and Standard Chartered Nominees Limited are directly held subsidiaries, all other related undertakings
are held indirectly. Unless otherwise stated, the principal country of operation of each subsidiary is the same as its country
of incorporation Note 32 details undertakings that have a significant contribution to the Group’s net profit or net assets.
Subsidiary Undertakings
Proportion of
Name
shares held (%)
Footnotes
FinVentures UK Limited
v
100 1, 163
SC (Secretaries) Limited
ix
100 1
SC Ventures G.P. Limited
v
100 1
SC Ventures Innovation Investment L.P.
v
100
Y
1
SCMB Overseas Limited
v
100 1, 163
Standard Chartered Africa Limited
v
100 1, 163
Standard Chartered Bank
i
100; 100
Q,T
1
Standard Chartered Foundation
ix
100 1, 158
Standard Chartered Health Trustee (UK) Limited
ix
100 1
Standard Chartered I H Limited
v
100 1, 163
Standard Chartered Nominees (Private Clients UK)
Limited
i
100 1
Standard Chartered Securities (Africa)
Holdings Limited
v
100 1, 163
Standard Chartered Strategic Investments Limited
v
100 1, 163
Standard Chartered Trustees (UK) Limited
ix
100 1
SC Ventures Holdings Limited
v
100; 100
M
1
Zodia Markets (UK) Limited
i
100 1
Zodia Markets Holdings Limited
v
83.96 1
Bricks (C&K) LP
ix
100
Y
2, 158
Bricks (C) LP
ix
100
Y
2, 158
Bricks (T) LP
ix
100
Y
2, 158
Corrasi Covered Bonds LLP
ix
75
AA
3
Zodia Custody Limited
iv
95.1; 15.132
K
107
Zodia Holdings Limited
v
100
A
107
Assembly Payments UK Ltd
iv
100 4, 158
CurrencyFair (UK) Limited
i
100 4, 158
Zai Technologies Limited
iv
100 4, 158
Standard Chartered Grindlays Pty Limited
v
100 5
Assembly Payments Australia Pty Ltd
iv
100 131, 158
Zai Australia Pty Ltd
iv
100 11
CurrencyFair Australia Pty Ltd
iv
100 6, 158
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
100 108
CurrencyFair (Canada) Ltd
iv
100 10, 158
SCB Investment Holding Company Limited
v
100
A
114
Standard Chartered Global Business Services Co.,
Ltd
vii
100 12, 160
Standard Chartered Global Business Services
(Guangzhou) Co., Ltd.
vii
100 121, 160
Guangzhou CurrencyFair Information
Technology Limited
iv
100 13, 159
Standard Chartered Bank Cote d’Ivoire SA
ix
100 14
Proportion of
Name
shares held (%)
Footnotes
Standard Chartered Bank AG
i
100 16
Solvezy Technology Ghana Ltd
iv
100 17
69.416;
Standard Chartered Bank Ghana PLC
i
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 81
Standard Chartered Private Equity Limited
v
100 20
Standard Chartered Asia Limited
v
100; 100
AD
20
CurrencyFair Asia Limited
iv
100 91, 158
Zodia Custody (Hong Kong) Limited
iv
100 132
Assembly Payments India Private Limited
iv
100 92
Standard Chartered Global Business Services
Private Limited
viii
100 22
Standard Chartered Finance Private Limited
viii
98.895 23
Standard Chartered Capital Limited
i
100 153
Standard Chartered Securities (India) Limited
i
100 93
Standard Chartered (India) Modeling and
Analytics Centre Private Limited
viii
100 26
SCV Research and Development Pvt. Ltd.
iv
100 117
PT Labamu Sejahtera Indonesia
iv
100 27
Currencyfair Limited
iv
100
A
150, 158, 165
CurrencyFair Nominees Limited
iv
100 148, 158
Zodia Markets (Ireland) Limited
i
100 133
Zodia Custody (Ireland) Limited
iv
100 134
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
Solvezy Technology Kenya Limited
iv
100 32
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, 158
Standard Chartered Global Business Services
Sdn Bhd
viii
100 115
Assembly Payments Malaysia Sdn. Bhd.
iv
100 37, 15 8
Annual Report 2025 | Standard Chartered 429
Financial statements
Financial statements
Notes to the financial statements
41. Related undertakings of the Group continued
Proportion of
Name
shares held (%)
Footnotes
Standard Chartered Bank (Mauritius) Limited
i
100 38
Standard Chartered Private Equity (Mauritius)
Limited
i
100 113
Standard Chartered Private Equity (Mauritius) II
Limited
i
100 113
Standard Chartered Private Equity (Mauritius) lll
Limited
i
100 113
Subcontinental Equities Limited
v
100 39
Standard Chartered Bank Nepal Limited
i
70.21 40
Standard Chartered Holdings (Africa) B.V.
v
100 1, 161
Standard Chartered Holdings (Asia Pacific) B.V.
v
100 1, 161
Standard Chartered Holdings (International) B.V.
v
100 1, 161
Standard Chartered MB Holdings B.V.
v
100 1, 161
PromisePay Limited
iv
100 41, 158
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
Standard Chartered Global Business Services
spółka z ograniczoną odpowiedzialnością
viii
100 45
Standard Chartered Capital (Saudi Arabia)
i
100 116
Standard Chartered Private Equity (Singapore)
Pte. Ltd
v
100 46
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
Audax Financial Technology Pte. Ltd
iv
100
A
147
CashEnable Pte. Ltd.
iv
100
A
146
Letsbloom Pte. Ltd.
iv
100
A
90
Libeara (Singapore) Pte. Ltd.
iv
100 90
Libeara Pte. Ltd.
v
100 90
SCV Research and Development Pte. Ltd.
iv
100
A
145
Zodia Custody (Singapore) Pte. Ltd.
iv
100 145
Power2SME Pte. Ltd.
v
91.577 146
SCV Master Holding Company Pte. Ltd.
v
100; 100
M
146
Solv-India Pte. Ltd.
v
100 146
Trust Bank Singapore Limited
i
60 130
CurrencyFair (Singapore) Pte.Ltd
iv
100 49, 158
Assembly Payments SGP Pte. Ltd.
iv
100 50, 158
Assembly Payments Pte. Ltd.
iv
100; 100
J
50, 158
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
99.87 54
Standard Chartered Yatirim Bankasi Turk
Anonim Sirket
ii
100 55
Standard Chartered Bank Uganda Limited
i
100 56
Furaha Finserve Uganda Limited
i
100.001 57
Appro Onboarding Solutions FZ-LLC
iv
100 58
Financial Inclusion Technologies Ltd
v
100
A
94
Proportion of
Name
shares held (%)
Footnotes
Furaha Holding Ltd
v
100; 100
B
59
myZoi Financial Inclusion Technologies LLC
iv
100 61
Standard Chartered Bank International (Americas)
Limited
i
100 111
Standard Chartered Holdings Inc.
v
100 62
Standard Chartered Securities (North America)
LLC
i
100
AA
62
CurrencyFair (USA) Inc
iv
100
AC
64, 158
Standard Chartered Trade Services Corporation
i
100 89
Standard Chartered Bank (Vietnam) Limited
i
100
X
65
Sky Harmony Holdings Limited
v
100 118
Standard Chartered Bank Zambia Plc
i
90 119
Standard Chartered Zambia Securities Services
Nominees Limited
i
100 138
Stanchart Nominees Limited
i
100 1, 164
Standard Chartered Holdings Limited
v
100 1, 163, 164, 159
Standard Chartered NEA Limited
v
100 1, 163
Standard Chartered Nominees Limited
i
100 1, 164
Standard Chartered (Guangzhou) Business
Management Co., Ltd.
ii
100 120, 159, 160
Standard Chartered Bank (China) Limited
i
100 75, 159, 160
Standard Chartered Securities (China) Limited
i
100 76, 159, 160
Horsford Nominees Limited
i
100 77
Marina Acacia Shipping Limited
vi
100 78
Marina Amethyst Shipping Limited
vi
100 78
Marina Angelite Shipping Limited
vi
100 78
Marina Beryl Shipping Limited
vi
100 78
Marina Emerald Shipping Limited
vi
100 78
Marina Flax Shipping Limited
vi
100 78
Marina Gloxinia Shipping Limited
vi
100 78
Marina Hazel Shipping Limited
vi
100 78
Marina Ilex Shipping Limited
vi
100 78
Marina Iridot Shipping Limited
vi
100 78
Marina Mimosa Shipping Limited
vi
100 78
Marina Moonstone Shipping Limited
vi
100 78
Marina Peridot Shipping Limited
vi
100 78
Marina Sapphire Shipping Limited
vi
100 78
Marina Tourmaline Shipping Limited
vi
100 78
Standard Chartered Securities (Hong Kong)
Limited
i
100 78
Marina Leasing Limited
vi
100 78
Standard Chartered Leasing Group Limited
v
100 78
Standard Chartered Trade Support (HK) Limited
i
100 78
Mox Bank Limited
i
74.36 79
Standard Chartered Bank (Hong Kong) Limited
i
100
A,B,C,D
80
Standard Chartered Trustee (Hong Kong) Limited
ix
100 82
Standard Chartered Funding (Jersey) Limited
v
100 83
Standard Chartered Bank Korea Limited
i
100 84
Standard Chartered Securities Korea Co., Ltd
i
100 85
Marina Morganite Shipping Limited
vi
100 125, 162
Marina Moss Shipping Limited
vi
100 125, 162
Marina Tanzanite Shipping Limited
vi
100 125, 162
Marina Angelica Shipping Limited
vi
100 86, 162
Marina Aventurine Shipping Limited
vi
100 86, 162
Marina Citrine Shipping Limited
vi
100 86, 162
Marina Dahlia Shipping Limited
vi
100 86, 162
Marina Dittany Shipping Limited
vi
100 86, 162
Marina Lilac Shipping Limited
vi
100 86, 162
Marina Lolite Shipping Limited
vi
100 86, 162
Marina Obsidian Shipping Limited
vi
100 86, 162
Standard Chartered | Annual Report 2025430
Proportion of
Name
shares held (%)
Footnotes
Marina Quartz Shipping Limited
vi
100 86, 162
Marina Remora Shipping Limited
vi
100 86, 162
Marina Turquoise Shipping Limited
vi
100 86, 162
Marina Zircon Shipping Limited
vi
100 86, 162
Price Solution Pakistan (Private) Limited
i
100 87
Standard Chartered Bank (Taiwan) Limited
i
100 88
CMB Nominees (RF) Proprietary Limited
ix
100 52
Letsbloom India Private Limited
iv
100 97
Qatalyst Pte. Ltd.
iv
72.727 146
Solv Vietnam Company Limited
iv
100
X
98
Standard Chartered Funds VCC
ix
100 48
TASConnect (Hong Kong) Private Limited
iv
100 99
TASConnect (Malaysia) Sdn. Bhd.
iv
100 36
TASConnect (Shanghai) Financial Technology
Pte. Ltd
iv
100 151, 160
Zodia Custody Australia Pty. Ltd.
iv
100 126
Zodia Markets (AME) Limited
iv
100 127
Zodia Markets (Jersey) Limited
iv
100 129
Standard Chartered Luxembourg S.A.
i
100 106
Fourtwothree Pte. Ltd
iv
100 90
HAL Holding Ltd
iv
100 155
Zodia Custody (Europe) S.A.
iv
100 128
Actis Treit Holdings (Mauritius) Limited
v
62.001
A,B
149, 158
Actis Treit Holdings No.1 (Singapore) Private
Limited
v
100 156, 158
Actis Treit Holdings No.2 (Singapore) Private
Limited
v
100 156, 158
Anchorpoint Financial Limited
iv
50.5 20
Appro Marketing Solutions L.L.C
iv
100 139
Berkeley Square Finance 1 Designated Activity
Company
i
100 124
CFZ Holding Limited
iv
29.96;100
A
150
Currencyfair Group Limited
iv
100 150, 158
Nusavest Pte. Ltd.
iv
100 146
Regwise Ltd
iv
100 102
Slate One LLC
i
100 101
Standard Chartered Services Holdings Limited
v
100 1
Standard Chartered Services Limited
viii
100 1
Tungsten Custody Solutions FZE
iv
100 100
Tungsten Custody Solutions Ltd
iv
100 63
Tungsten Holding Limited
iv
100 63
Zodia Markets Technology Services FZCO
iv
0.1 25
Joint ventures
Proportion of
Name
shares held (%)
Footnotes
Olea Global Pte. Ltd.
iv
46.655; 100
J
145
Global Digital Asset Holdings Limited
v
100 60
Akashaverse Pte. Ltd.
iv
50 143
K423
Limited
vii
25.011 104
Lexarius Limited
iv
50 103
Qlarion Ltd
iv
100
A
102
Associates
Proportion of
Name
shares held (%)
Footnotes
Clifford Capital Holdings Pte. Ltd.
v
9.9 109
Verified Impact Exchange Holdings Pte. Ltd
i
13.421 110
Seychelles International Mercantile Banking
Corporation Limited.
i
22 66
SWIAT GmbH
iv
30.498 67
25; 25
H
;
Partior Holdings Pte. Ltd.
i
7.2461 69
China Bohai Bank Co., Ltd.
i
16.263 95, 159
Vault22 Solutions Holdings Ltd
iv
100
E
135
Proportion of
Name
shares held (%)
Footnotes
94.117
AF
;
Jumbotail Technologies Private Limited
iv
100
AG,AH
105
Significant investment holdings and other
related undertakings
Proportion of
Name
shares held (%)
Footnotes
Corrasi Covered Bonds (LM) Limited
i
20 3, 158
SCIAIGF Liquidating Trust
v
43.96
AB
112, 158
ATSC Cayman Holdco Limited
v
5.272
A
;100
B
140
39.689
A
;
Actis Temple Stay Holdings (HK) Limited
v
39.689
B
141, 158
Mikado Realtors Private Limited
ix
26 142
Industrial Minerals and Chemical Co. Pvt. Ltd
ix
26 157
Ascenta III
v
31
G
70
40.74
O
;
Paxata, Inc.
iii
8.908
P
64
In liquidation
Proportion of
Name
shares held (%)
Footnotes
Subsidiary Undertakings
Standard Chartered Masterbrand Licensing
Limited
ix
100 122
Birdsong Limited
ix
100 71
Nominees One Limited
ix
100 71
Nominees Two Limited
ix
100 71
Songbird Limited
ix
100 71
Standard Chartered Secretaries (Guernsey)
Limited
ix
100 71
Standard Chartered Trust (Guernsey) Limited
ix
100 71
Standard Chartered Financial Services
(Luxembourg) S.A.
ix
100 72
Banco Standard Chartered en Liquidacion
ix
100 123
Standard Chartered Uruguay Representacion S.A.
ix
100 73
SC Transport Leasing 1 LTD
ix
100 144
SC Transport Leasing 2 Limited
ix
100 144
Standard Chartered Leasing (UK) Limited
ix
100 144
Standard Chartered Trust (Hong Kong) Limited
i
100 82
Associates
Ascenta IV
ix
39.1
Z
74
Subsidiary/Associate undertakings and
Significant investment holdings – Liquidated/
dissolved/sold
Proportion of
Name
shares held (%)
Footnotes
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
Assembly Payments HK Limited
iv
100 21, 158
Standard Chartered Research and Technology
India Private Limited
iv
100
A,R
136
CurrencyFair (Canada) Limited
iv
100 28, 158
Tawi Fresh Kenya Limited
iv
100 32
Pegasus Dealmaking Pte. Ltd.
iv
100 145
Promisepay (PTY) Ltd
iv
100 137, 158
Marina Partawati Shipping Pte. Ltd.
vi
100 152
SC Ventures Management Consulting (Shenzhen)
Limited
ix
100 154, 159
Standard Chartered Leasing (UK) 3 Limited
vi
100 68
Annual Report 2025 | Standard Chartered 431
Financial statements
Financial statements
Notes to the financial statements
41. Related undertakings of the Group continued
Proportion of
Name
shares held (%)
Footnotes
Marina Opah Shipping Pte. Ltd.
vi
100 68
Marina Cobia Shipping Pte. Ltd.
vi
100 68
Marina Aquata Shipping Pte. Ltd.
vi
100 68
Marina Aruana Shipping Pte. Ltd.
vi
100 68
Cerulean Investments LP
ix
100
Y
68
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
SBI Zodia Custody Co. Ltd
iv
100 68
Fintech for International Development Ltd
ix
58.901
A
96
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
Robert Denholm House, Bletchingly Road, Nutfield, Redhill, RH1 4HW,
4 United Kingdom
5
Level 5, 345
George St, Sydney NSW 2000, Australia
Milsons Landing, Level 5, 6A Glen Street, Milsons Point NSW 2061,
6 Australia
5
th
Floor Standard House Bldg, The Mall, Queens Road, PO Box 496,
7 Gaborone, Botswana
Avenida Brigadeiro Faria Lima, no 3.477, 6
o
andar, conjunto 62 – Torre
Norte, Condominio Patio Victor Malzoni, CEP 04538-133, Sao Paulo,
8 Brazil
9
1155,
Boulevard de la Liberté, Douala, B.P. 1784, Cameroon
66 Wellington Street, West, Suite 4100, Toronto Dominion Centre,
10 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
Standard Chartered Bank Cote d’Ivoire, 23 Boulevard de la République,
14 Abidjan 17, 17 B.P. 1141, Cote d’Ivoire
15
8 Ecowas Avenue, Banjul, Gambia
16
TaunusTurm, Taunustor 1, 60310, Frankfurt am Main, Germany
Standard Chartered Bank Building, 87 Independance Avenue, Ridge,
17 ACCRA, Greater ACCRA, GA-016-4621, Ghana
Standard Chartered Bank Building, No. 87, Independence Avenue, P.O.
18 Box 768, Accra, Ghana
Standard Chartered Bank Ghana Limited, 87, Independence Avenue,
19 Post Office Box 678, Accra, Ghana
13/F Standard Chartered Bank Building, 4-4A Des Voeux Road Central,
20 Hong Kong
21
31/F, Tower 2 Times Square, 1 Matheson St, Causeway Bay, Hong Kong
6
th
Floor, Tower 3, DLF Downtown, 100 Feet Road, Tharamani, Chennai,
22 Tamil Nadu, 600113, India
23
90 M.G.Road, II Floor, Fort, Mumbai, Maharashtra, 400001, India
Ground Floor, Crescenzo Building, G Block, C 38/39, Bandra Kurla
24 Complex, Bandra (East), Mumbai, Maharashtra, 400051, India
Unit RET-R5-186, Detached Retail R5, Plot No: JLT-PH
2
-RET-R5, Jumeirah,
25 United Arab Emirates
Vaishnavi Serenity, First Floor, No. 112, Koramangala Industrial Area, 5
th
26 Block, Koramangala, Bangalore, Karnataka, 560095, India
The Icon Business Park Blok F No. 5, Desa/Kelurahan, Sampora Kec,
27 Cisauk, Kab Tangerang Provinsi, Banten, 15345, Indonesia
28
91 Pembroke Road, Dublin 4, Ballsbridge, Dublin, DO4 EC42, Ireland
Third Floor, St. George’s Court, Upper Church Street, Douglas, IM1 1EE,
29 Isle of Man
21/F, Sanno Park Tower, 2-11-1 Nagatacho, Chiyoda-ku, Tokyo, 100-6155,
30 Japan
31
15 Castle Street, St Helier, JE4 8PT, Jersey
Address
Standard Chartered@Chiromo, 48 Westlands Road, P. O. Box 30003
32
–
00100,
Nairobi, Kenya
Atrium Building, Maarad Street, 3
rd
Floor, P.O. Box 11-4081 Raid El Solh,
33 Beirut Central District, Lebanon
Level 25, Equatorial Plaza, Jalan Sultan Ismail, 50250 Kuala Lumpur,
34 Malaysia
Suite 18-1, Level 18, Vertical Corporate Tower B, Avenue 10, The Vertical,
Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Wilayah
35 Persekutuan, Malaysia
Level 7, Mercu 3. No. 3, Jalan Bangsar, KL ECO City, 59200 Kuala
36 Lumpur, Malaysia
Level 13, Menara 1 Sentrum 201, Jalan Tun Sambanthan, Brickfields,
37
50470
Kuala Lumpur, Malaysia
6
th
Floor, Standard Chartered Tower, 19, Bank Street, Cybercity, Ebene,
38
72201,
Mauritius
Mondial Management Services Ltd, Unit 2L, 2
nd
Floor Standard
39 Chartered Tower, 19 Cybercity, Ebene, Mauritius
Standard Chartered Bank Nepal Limited, Madan Bhandari Marg. Ward
No.31, Kathmandu Metropolitan City, Kathmandu District, Bagmati
40 Province, Kathmandu, 44600, Nepal
PromisePay, 4 All good Place, Rototuna North, Hamilton, 3210, New
41 Zealand
42
142, Ahmadu Bello Way, Victoria Island, Lagos, 101241, Nigeria
43
P.O. Box No. 5556, I.I. Chundrigar Road, Karachi, 74000, Pakistan
8
th
Floor, Makati Sky Plaza Building 6788, Ayala Avenue San Lorenzo,
44 City of Makati, Fourth District, National Capi, 1223, Philippines
45
Rondo Ignacego Daszyńskiego 2B, 00-843, Warsaw, Poland
8 Marina Boulevard, #25-01 Marina Bay Financial Centre, 018981,
46 Singapore
7 Changi Business Park Crescent, #03-00 Standard Chartered @
47
Changi, 486028,
Singapore
8 Marina Boulevard, #27-01 Marina Bay Financial Centre Tower 1,
48
018981,
Singapore
49
1 Robinson Road, #17-00, AIA Tower, 048542, Singapore
50
38 Beach Road, #29-11 South Beach Tower, 189767, Singapore
Abogado Pte Ltd, No. 8 Marina Boulevard, #05-02 MBFC Tower 1,
51
018981,
Singapore
52
2
nd
Floor, 115 West Street, Sandton, Johannesburg, 2196, South Africa
1 Floor, International House, Shaaban Robert Street / Garden Avenue,
53 PO Box 9011, Dar Es Salaam, Tanzania, United Republic of
No. 140, 11
th
, 12
th
and 14
th
Floor, Wireless Road, Lumpini, Patumwan,
54
Bangkok, 10330,
Thailand
Buyukdere Cad. Yapi Kredi Plaza C Blok, Kat 15, Levent, Istanbul, 34330,
55 Turkey
Standard Chartered Bank Bldg, 5 Speke Road, PO Box 7111, Kampala,
56 Uganda
57
14 Mackinnon Road, Nakasero, Kampala, 141769, Uganda
Arjaan Office Towers, Office 105, Dubai Media City, United Arab
58 Emirates
Unit IH-00-01-07-OF-05, Level 7, IH-00-01-CP-05, Dubai International
59 Financial Centre, Dubai, United Arab Emirates
Standard Chartered Bank, 7
th
Floor, Building One, Gate Precinct, DIFC,
60 PO Box 999, Dubai, United Arab Emirates
Part of Level 15, Standard Chartered Bank Building, Plot 8, Burj
61 Downtown, Dubai, United Arab Emirates
Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801,
62 United States
Office 1809, 18
Floor Sky Tower, Shams Abu Dhabi, Al Reem Island, Abu
63 Dhabi, United Arab Emirates
64
251
Little Falls Drive, Wilmington DE 19808, United States
Level 3, #CP1.L01 and CP2.L01, Capital Place, 29 Lieu Giai, Ngoc Ha
65 Ward, Hanoi, 10000, Vietnam
66
Victoria House, State House Avenue, Victoria, MAHE, Seychelles
67
Gervinusstrasse 17, 60322, Frankfurt am Main, Hesse, Germany
Standard Chartered | Annual Report 2025432
Address
Ground Floor, Two Dockland Central, Guild Street, North Dock, Dublin,
68 D01 K2C5, Ireland
60B, Orchard Road, #06-18, Tower 2, The Atrium @ Orchard, 238891,
69 Singapore
17F, 47, Jong-ro, Jongno-gu, (17F, 100, Gongpyeong-dong, Jongno-gu),
70 Seoul, Korea, Republic of
71
Bucktrout House, Glategny Esplanade, St Peter Port, GY1 3HQ, Guernsey
72
30 Rue Schrobilgen, 2526, Luxembourg
73
Luis Alberto de Herrera 1248, Torre II, Piso 11, Esc. 1111, Uruguay
74
5-4, Bongeunsa-ro 29-gil, Gangnam-gu, Seoul, 06109, Korea
Standard Chartered Tower, 201 Century Avenue, Pudong, Shanghai,
75
200120,
China
1201 1-2, 15-16, 12/F, Unit No.1, Building No.1, No. 1 Dongsanhuan Zhong
76 Road, Chaoyang District, Beijing, China
18/F., Standard Chartered Tower, 388 Kwun Tong Road, Kwun Tong,
77 Kowloon, Hong Kong
15/F., Two International Finance Centre, No. 8 Finance Street, Central,
78 Hong Kong
39/F., Oxford House, Taikoo Place, 979 King’s Road, Quarry Bay,
79 Hong Kong
80
32/F., 4-4A Des Voeux Road, Central, Hong Kong
81
14
th
Floor, One Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
14/F, Standard Chartered Bank Building, 4-4A Des Voeux Road, Central,
82 Hong Kong
83
IFC 5, St Helier, JE1 1ST, Jersey
84
47, Jong-ro, Jongno-gu, Seoul, 110-702, Korea, Republic of
85
2F, 47, Jong-ro, Jongno-gu, Seoul, Korea, Republic of
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
86
MH96960,
Marshall Islands
3
rd
Floor Main SCB Building, I.I Chundrigar Road, Karachi, Sindh, 74000,
87 Pakistan
1F, No.177 & 3F-6F, 18F, No.179, Liaoning Street, Zhongshan Dist., Taipei,
88 104, Taiwan (Province of China)
C/O Corporation Service Company, 251 Little Falls Drive, Wilmington
89
DE 19808,
United States
90
16 Raffles Quay, #16-02, Hong Leong Building, 048581, Singapore
Suite 12100,
12/F., YF Life Tower, 33 Lockhart Road, Wan Chai,
91 Hong Kong
92
1
st
Floor, UB Plaza, No. 1 & 2, Vittal Mallya Road, Bengalur, India
12
th
Floor, Crescenzo Business District, Plot no. C-38/39, G-Block, Bandra
93 – Kurla Complex, Bandra East, Mumbai, Maharashtra, 400051, India
16
th
Floor, WeWork Hub 71, Al Khatem Tower, ADGM Square, Al Maryah
94 Island, Abu Dhabi, United Arab Emirates
95
218
Haihe East Road, Hedong District, Tianjin, 300012, China
Parker Andrews Ltd, 5
th
Floor. The Union Building, 51-59 Rose Lane,
96 Norwich, NR1 1BY
Unit 1 – 127A, WeWork Futura, Magarpatta Road, Kirtane Baug,
97 Hadpsar I.E., Pune – 411013, Maharashtra, India
L17-11, Floor 17, Vincom Center, 72 Le Thanh Ton, Ben Nghe Ward,
98 District 1, Ho Chi Minh City, Vietnam
99
30
th
floor, One Taikoo Place, 979 King’s Road, Hong Kong, Hong Kong
100
5.01 and 5.02 Convention Tower, DWTC, Dubai, United Arab Emirates
Al Tamimi & Company International Limited, Tornado Tower, No. 17,
101
19
th
Floor, Doha, Qatar
102
100
Longwater Avenue, Reading, Berkshire, RG2 6GP, United Kingdom
DD-14-116-033, 15, Al Khatem Tower, WeWork Hub 71, Abu Dhabi Global
103 Market Square, Abu Dhabi, Al Maryah Island, United Arab Emirates
104
Office 7, 35-37 Ludgate Hill, London, EC4M 7JN
Eastland Citadel, 6
th
Floor, No.102, Hosur Road, Madiwala Check post,
105 Bangalore, 560 029, India
106
53 Boulevard Royal, Grand Duchy of Luxembourg, 2449, Luxembourg
107
1
st
Floor, 6-8 Eastcheap, London, EC3M 1AE
G01-02, Wisma Haji Mohd Taha Building, Jalan Gadong, BE4119,
108 Brunei Darussalam
109
38 Beach Road, #19-11 South Beach Tower, 189767, Singapore
10 Marina Boulevard #08-08, Marina Bay Financial Centre, 018983,
110 Singapore
111
1095
Avenue of Americas, New York City NY 10036, United States
Address
112
3 Jalan Pisang, c/o Watiga Trust Ltd, 199070, Singapore
c/o Ocorian Corporate Services (Mauritius) Ltd, 6
th
Floor, Tower A, 1,
113 Exchange Square, Wall Street, Ebene, Mauritius – 72201, Mauritius
c/o Maples Finance Limited, PO Box 1093 GT, Queensgate House,
114 Georgetown, Grand Cayman, Cayman Islands
Level 1, Wisma Standard Chartered, Jalan Teknologi 8, Taman
Teknologi Malaysia, Bukit Jalil, 57000 Kuala Lumpur, Wilayah
115 Persekutuan, Malaysia
Al Faisaliah Office Tower Floor No 7 (T07D), King Fahad Highway,
116 Olaya District, P.O box 295522, Riyadh, 11351, Saudi Arabia
117
No. 2734,
3
rd
Floor, Sector – I, HSR Layout, Bangalore, 560102, India
The Company’s Registered Office, Vistra Corporate Services Centre,
118 Wickhams Cay II, Road Town, Tortola, VG1110, Virgin Islands, British
Standard Chartered House, Stand No. 4642, Corner of Mwaimwene
119 Road and Addis Ababa Drive, Lusaka, Lusaka, 10101, Zambia
Units 1101B (Office use only), No. 235 Tianhebei Rd., Tianhe District,
120 Guangzhou City, Guangdong Province, China
Unit 802B, 803, 1001A,1002B,1003-1005,1101-1105, 201-1205,1302C,1303,
No. 235
Tianhe North Road, Tianhe District, Guangzhou City,
121 Guangdong Province, China
C/O Teneo Financial Advisory Limited, The Colmore Building,
122 20 Colmore Circus, Queensway, Birmingham, B4 6AT, United Kingdom
123
Jiron Huascar 2055, Jesus Maria, Lima, 15072, Peru
124
10 Earlsfort Terrace, Dublin 2, Dublin, D02 T380, Ireland
TMF Trust Labuan Limited, Brumby Centre, Lot 42, Jalan Muhibbah,
125
87000
Labuan F.T., Malaysia
c/o King & Wood Mallesons, Level 61, Governor Phillip Tower, 1 Farrer
126 Place, Sydney NSW 2000, Australia
2402B,
24
th
Floor, Tamouh Tower, Tamouh, Abu Dhabi, Al Reem Island,
127 United Arab Emirates
128
2 Place de Paris, 2314, Luxembourg
129
No 1 Grenville Street, St Helier, JE2 4UF, Jersey
130
77 Robinson Road, #25-00 Robinson 77, 068896, Singapore
131
Level 22, 120
Spencer Street, Melbourne VIC 3000, Australia
Room 1915,
19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay,
132 Hong Kong
133
One Central Plaza, Temple Bar, Dublin 2, Dublin, D02 EF64, Ireland
134
27 Fitzwilliam Street, Dublin, D02 TP23, Ireland
Unit 705, Innovation One, Dubai International Financial Centre, Dubai,
135 United Arab Emirates
No. 2734,
Sector-I, HSR Layout, HSR Layout, Bangalore, Bangalore South,
136 Karnataka, 560102, India
1
st
Floor Building 33, Waterford Office Park, Waterford Drive, Fourways,
137 Gauteng, 2191, South Africa
Stand No. 4642, Corner of Mwaimwena Road and Addis Ababa Drive,
138
Lusaka, 10101,
Zambia
BurDubai First Business Center Office number B2007-258, Dubai,
139 United Arab Emirates
Intertrust Corporate Services (Cayman) Limited, 190 Elgin
140 Avenue,George Town, Grand Cayman, KY1-9005, Cayman Islands
Unit 605-07, 6/F Wing OnCentre, 111 Connaught Road, Central,
141 Sheung Wan, Hong Kong
142
1221
A, Devika Tower, 12
th
Floor, 6 Nehru Place, New Delhi 110019
143
16 Raffles Quay, #18-02, Hong Leong Building, 048581, Singapore
The Colmore Building, 20 Colmore Circus, Queensway, Birmingham,
144 B4 6AT, United Kingdom
145
9 Raffles Place, #26-01 Republic Plaza, 048619, Singapore
146
9 Raffles Place, #18-21 Republic Plaza, 048619, Singapore
Acclime Singapore Pte. Ltd, 9 Raffles Place #18-21, Republic Plaza,
147
048619,
Singapore
WeWork, One Central Plaza, Dame Street, Dublin 2, Dublin, D02 K7K5,
148 Ireland
IQEQ Corporate Services (Mauritius) Ltd, 33, Edith Cavell Street,
149 Port Louis, 11324, Mauritius
150
One, Central Plaza, Dame Street, Dublin 2, Dublin, D02 K7K5, Ireland
Level C, No. 888 2
nd
Huanhu West Road, Nanhui New Town,
151 Pudong New Area, Shanghai
8 Marina Boulevard, Level 26, Marina Bay Financial Centre, Tower 1,
152
018981,
Singapore
Annual Report 2025 | Standard Chartered 433
Financial statements
Financial statements
Notes to the financial statements
41. Related undertakings of the Group continued
Address
12
th
Floor, Parinee Crescenzo Building, Plot C-38 & 39, G Block Bandra (E)
153 Opp. MCA Ground, Mumbai, 400051, India
Unit 8C-17B, Xinlikang Building, 3044 Xinghai Blvd, Nanshan District,
154 Shenzhen, China
Dedicated desk # 14-123-039, 15
th
Floor, Al Khatem Tower, ADGM
155 Square, Abu Dhabi, United Arab Emirates
156
6 Battery Road #13-01, 049909, Singapore
4
th
Floor, 274, Chitalia House, Dr. Cawasji Hormusji Road, Dhobi Talao,
157 Mumbai City, Maharashtra, India 400 002, Mumbai, 400 002, India
Other notes
Other notes
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
158 policy and disclosure of the undertaking.
159
Registered as a Limited company under the Law of China
160
Limited liability company
The Group has determined the principal place of operation to be
161 United Kingdom
The Group has determined the principal place of operation to be
162 Hong Kong
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 taking an audit exemption for the year ended 31 December
2025 are Standard Chartered Holdings Limited 02426156, Standard
Chartered I H Limited 08414408, Finventures UK Limited 04275894,
Standard Chartered Strategic Investments Limited 01388304, Standard
Chartered NEA Limited 05345091, SCMB Overseas Limited 01764223,
Standard Chartered Africa Limited 00002877and Standard Chartered
Securities (Africa) Holdings Limited 05843604.
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), Standard Chartered NEA Limited
163 ($22.0million) and SCMB Overseas Limited ($6.3million)
164
Directly held related undertaking
165
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
AF
D1 Preference
AG
S1 Preference
AH
S2 Preference
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
Save for those disclosed in this Annual Report, there
were no other significant investments held, nor were there
material acquisitions or disposals of subsidiaries during the
year under review. Apart from those disclosed in this Annual
Report, there were no material investments or additions
of capital assets authorised by the Board at the date
of this Annual Report.
Standard Chartered | Annual Report 2025434
In this section
436 Supplementary financial information
444 Supplementary people information
450 Supplementary sustainability information
458 Climate reporting index
466 Shareholder information
470 Glossary
Supplementary
information
Case study
Helping clients
with health,
wealth and
wellness
In November 2025, we launched a new health and
wellness proposition for affluent clients, partnering
with medical insurer Bupa Global and WHOOP,
afitness and health wearables specialist.
The proposition, available in Hong Kong, Singapore and
India, brings together international private medical insurance,
digital healthcare access and data-driven wellness insights
for a holistic and proactive approach to health and wellness.
The launch follows growing demand for solutions that
integrate health, prevention and long-term wellbeing.
Read more: sc.com/bupawhoop
Annual Report 2025 | Standard Chartered 435
Supplementary information
Supplementary financial information
The supplementary financial information is unaudited unless otherwise stated
Five-year summary
2025
$million
2024
$million
2023
$million
2022
$million
2021
$million
Operating profit before impairment losses and taxation 7,638 7,041 6,468 5,405 3,777
Impairment losses on loans and advances and other
credit risk provisions (672) (547) (508) (836) (254)
Other impairment (65) (588) (1,008) (425) (372)
Profit before taxation 6,963 6,014 5,093 4,286 3,347
Profit attributable to shareholders 5,085 4,050 3,469 2,948 2,315
Loans and advances to banks
1
43,901 43,593 44,977 39,519 44,383
Loans and advances to customers
1
286,788 281,032 286,975 310,647 298,468
Total assets 919,955 849,688 822,844 819,922 827,818
Deposits by banks
1
30,846 25,400 28,030 28,789 30,041
Customer accounts
1
530,161 464,489 469,418 461,677 474,570
Shareholders’ equity 46,593 44,388 44,445 43,162 46,011
Total capital resources
2
63,420 61,666 62,389 63,731 69,282
Information per ordinary share Cents Cents Cents Cents Cents
Basic earnings per share 195.4 141.3 108.6 85.9 61.3
Underlying earnings per share 229.7 168.1 128.9 97.9 85.8
Dividends per share
3
61.0 37.0 27.0 18.0 12.0
Net asset value per share 2,007.0 1,781.3 1,629.0 1,453.3 1,456.4
Net tangible asset value per share 1,730.0 1,541.1 1,393.0 1,249.0 1,277.0
Return on assets(%)
4
0.6 0.5 0.4 0.4 0.3
Ratios % % % % %
Reported return on ordinary shareholders’ tangible equity 11.9 9.7 8.4 6.8 4.8
Underlying return on ordinary shareholders’ tangible equity 14.7 11.7 10.1 7.7 6.8
Reported cost-to-income ratio 63.5 64.0 64.1 66.9 74.3
Underlying cost-to-income ratio 59.1 59.9 64.1 66.2 70.5
Capital ratios:
CET1
5
14.1 14.2 14.1 14.0 14.1
Total capital
5
20.6 21.5 21.2 21.7 21.3
1 Excludes amounts held at fair value through profit or loss.
2 Shareholders’ funds, non-controlling interests, and subordinated loan capital.
3 Dividend paid during the year per share.
4 Represents profit attributable to shareholders divided by the total assets of the Group.
5 Unaudited.
Standard Chartered | Annual Report 2025436
Analysis of underlying performance by key market
The following tables provide information for key markets in which the Group operates. The numbers are prepared on
amanagement view. Refer to Note 2 for details.
2025
Hong Kong
$million
Korea
$million
China
$million
Taiwan
$million
Singapore
$million
India
$million
UAE
$million
UK
$million
US
$million
Other
$million
Group
$million
Operating income 5,347 1,088 1,149 590 3,059 1,499 1,173 1,665 1,201 4,123 20,894
Operating expenses (2,429) (789) (804) (345) (1,784) (912) (650) (1,464) (628) (2,542) (12,347)
Operating profit
beforeimpairment
losses and taxation 2,918 299 345 245 1,275 587 523 201 573 1,581 8,547
Credit impairment (253) (66) (78) (22) (116) (42) 39 45 (71) (112) (676)
Other impairment (2) 1 (5) – (12) (3) – 4 (1) (24) (42)
Profit from associates
and joint ventures – – 114 – (5) – – (6) – (32) 71
Underlying profit
beforetaxation 2,663 234 376 223 1,142 542 562 244 501 1,413 7,900
Total assets employed 217,291 51,350 50,188 21,875 123,610 32,750 22,065 243,016 63,350 94,460 919,955
Of which: loans and
advances to customers
3
89,641 29,089 14,358 11,905 65,083 12,286 8,715 60,519 24,938 33,052 349,586
Total liabilities
employed 218,190 44,055 43,435 19,203 113,762 24,736 20,467 244,932 52,605 83,984 865,369
Of which: customer
accounts³ 187,753 34,177 36,692 17,722 100,598 16,333 17,873 86,852 22,541 64,633 585,174
2024¹
Operating income 4,581 1,125 1,402 588 2,564 1,538 1,161 1,445 939 4,353 19,696
Operating expenses (2,296) (763) (796) (341) (1,557) (957) (553) (1,538) (532) (2,457) (11,790)
Operating profit
beforeimpairment
losses and taxation 2,285 362 606 247 1,007 581 608 (93) 407 1,896 7,906
Credit impairment (266) (54) (152) (38) (53) (37) 139 36 (1) (131) (557)
Other impairment (117) (1) (28) – (135) (72) (28) (130) (26) (51) (588)
Profit from associates
and joint ventures – – 67 – 5 – – (4) – (18) 50
Underlying profit
beforetaxation¹ 1,902 307 493 209 824 472 719 (191) 380 1,696 6,811
Total assets employed
2
193,212 47,578 42,064 22,042 104,850 32,407 23,194 249,988 54,263 80,090 849,688
Of which: loans and
advances to customers
3
86,034 26,745 15,763 11,860 65,166 12,981 8,699 64,714 18,551 29,044 339,557
Total liabilities
employed
2
193,498 39,237 32,768 18,628 96,925 24,856 17,782 260,633 40,922 73,155 798,404
Of which: customer
accounts
3
166,420 28,703 27,853 17,252 86,250 18,601 14,872 90,473 16,066 56,773 523,263
1 Underlying profit before taxation has been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025.
2 Balance sheet numbers have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 reflecting change from
management basis to financial basis.
3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements.
Annual Report 2025 | Standard Chartered 437
Supplementary information
Analysis of operating income by product and segment
The following tables provide a breakdown of the Group’s underlying operating income by product and client segment.
2025 2024
Corporate
&
Investment
Banking
$million
Wealth &
Retail
Banking
$million
Ventures
$million
Central &
other items
$million
Total
$million
Corporate
&
Investment
Banking
1
$million
Wealth &
Retail
Banking
1
$million
Ventures
$million
Central &
other
items
1
$million
Total
$million
Transaction Services 6,005 – – – 6,005 6,434 – – – 6,434
Payments andLiquidity 4,155 – – – 4,155 4,605 – – – 4,605
Securities & PrimeServices 648 – – – 648 611 – – – 611
Trade & Working Capital 1,202 – – – 1,202 1,218 – – – 1,218
Global Banking 2,229 – – – 2,229 1,935 – – – 1,935
Lending & Financial Solutions 1,905 – – – 1,905 1,677 – – – 1,677
Capital Market &Advisory 324 – – – 324 258 – – – 258
Global Markets 3,863 – – – 3,863 3,450 – – – 3,450
Macro Trading 3,116 – – – 3,116 2,852 – – – 2,852
Credit Trading 753 – – – 753 644 – – – 644
Valuation &OtherAdj (6) – – – (6) (46) – – – (46)
Wealth Solutions – 3,086 – – 3,086 – 2,490 – – 2,490
Investment Products – 2,347 – – 2,347 – 1,827 – – 1,827
Bancassurance – 739 – – 739 – 663 – – 663
Deposits &Mortgages – 4,080 – – 4,080 – 4,170 – – 4,170
CCPL & Other Unsecured Lending – 1,080 – – 1,080 – 1,081 – – 1,081
Ventures – – 415 – 415 – – 183 – 183
Digital Banks – – 195 – 195 – – 142 – 142
SCV – – 220 – 220 – – 41 – 41
Treasury & Other 297 218 – (379) 136 116 280 – (443) (47)
Total underlying operating income 12,394 8,464 415 (379) 20,894 11,935 8,021 183 (443) 19,696
1 Segment results have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025.
Supplementary financial information
Standard Chartered | Annual Report 2025438
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 Insured deposits Uninsured deposits
Bank
deposits
$million
Customer
accounts
$million
Bank
deposits
$million
Customer
accounts
$million
Total
$million
Bank
deposits
$million
Customer
accounts
$million
Bank
deposits
$million
Customer
accounts
$million
Total
$million
Current accounts 10 18,704 25,144 167,530 211,388 8 15,596 19,844 152,101 187,549
Savings deposits – 34,046 – 94,855 128,901 – 31,977 – 86,579 118,556
Time deposits 28 32,740 7,513 200,463 240,744 – 28,417 6,717 170,752 205,886
Other deposits – 51 8,944 36,785 45,780 – 104 9,393 37,737 47,234
Total 38 85,541 41,601 499,633 626,813 8 76,094 35,954 447,169 559,225
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 UK deposits Non-UK deposits
Bank
deposits
$million
Customer
accounts
$million
Bank
deposits
$million
Customer
accounts
$million
Total
$million
Bank
deposits
$million
Customer
accounts
$million
Bank
deposits
$million
Customer
accounts
$million
Total
$million
Current accounts 448 8,001 24,706 178,233 211,388 544 7,734 19,308 159,963 187,549
Savings deposits – 318 – 128,583 128,901 – 145 – 118,411 118,556
Time deposits 566 7,554 6,975 225,649 240,744 315 7,731 6,402 191,438 205,886
Other deposits 950 11,994 7,994 24,842 45,780 2,342 12,744 7,051 25,097 47,234
Total 1,964 27,867 39,675 557,307 626,813 3,201 28,354 32,761 494,909 559,225
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 67,606 170,999 69,082 39,457 – 37,171 514,547
Between one and five years 11,109 75,643 85 83,024 – 4,464 67,336
Between five and ten years 1,572 23,308 – 22,287 – 4 1,211
Between ten years and fifteen years 164 13,841 – 5,659 – – 1,528
More than fifteen years and undated 122 65,794 – 32,863 10,287 – 552
Total 80,573 349,585 69,167 183,290 10,287 41,639 585,174
Total amortised cost and FVOCI exposures 43,901 286,788
Of which: Fixed interest rateexposures 36,651 150,052
Of which: Floating interest rateexposures 7,250 136,736
Annual Report 2025 | Standard Chartered 439
Supplementary information
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
$million
One year or less 66,448 181,863 41,966 47,959 – 29,678 463,566
Between one and five years 12,122 63,006 41 74,197 – 6,281 57,062
Between five and ten years 1,680 21,139 – 23,319 – 3 849
Between ten years and fifteen years 71 13,236 – 5,876 – – 1,217
More than fifteen years and undated 239 60,313 – 26,743 6,480 – 569
80,560 339,557 42,007 178,094 6,480 35,962 523,263
Amortised cost and FVOCI exposures 43,593 281,032
Of which: Fixed interest
rateexposures 35,383 153,575
Of which: Floating interest
rateexposures 8,210 127,457
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 3,234 1.06 10,495 1.35 4,038 0.94 4,197 2.59 21,964 1.47
• UK 129 0.80 331 2.51 49 0.88 – – 509 1.92
• Other 4,916 2.36 9,243 2.59 3,799 2.90 19 6.90 17,977 2.60
Other debt securities 1,770 6.42 3,403 5.51 5,514 4.67 6,113 4.69 16,800 5.03
As at 31 December 2025 10,049 2.64 23,472 2.46 13,400 3.03 10,329 3.84 57,250 2.87
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 1,864 1.53 9,607 1.98 5,187 1.88 4,353 2.76 21,011 2.08
• UK 192 1.70 684 2.07 44 0.88 – – 920 1.93
• Other 3,081 3.20 11,454 3.39 2,932 3.93 25 7.55 17,492 3.46
Other debt securities 1,687 6.21 2,676 6.30 4,620 4.86 6,731 5.41 15,714 5.49
As at 31 December 2024 6,824 3.45 24,421 3.12 12,783 3.42 11,109 4.38 55,137 3.48
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.
Supplementary financial information
Standard Chartered | Annual Report 2025440
Average balance sheets and yields and volume and price variances
Average balance sheets
For the purposes of calculating net interest margin the following adjustments are made:
• Reported net interest income is adjusted to remove interest expense on amortised cost liabilities used to provide funding
tothe financial markets business.
• Financial instruments measured at fair value through profit or loss are classified as non-interest earning.
• Premiums on financial guarantees purchased to manage interest earning assets are treated as interest expense
IntheGroup’s view this results in a net interest margin that is more reflective of banking book performance.
The following tables set out the average balances for the 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
interest- earning
balance
%
Gross yield total
balance
%
Cash and balances at central banks 10,160 61,692 2,126 3.45 2.96
Gross loans and advances to banks 42,579 47,298 2,209 4.67 2.46
Gross loans and advances to customers 69,057 289,758 14,147 4.88 3.94
Impairment provisions against loans and advances
tobanks and customers – (5,151) – – –
Investment securities – Treasury and Other Eligible Bills 24,397 31,037 1,210 3.90 2.18
Investment securities – Debt Securities 66,974 126,296 4,855 3.84 2.51
Investment securities – Equity Shares 7,790 – – – –
Property, plant and equipment and intangible assets 6,378 – – – –
Prepayments, accrued income and other assets 145,005 – – – –
Investment associates and joint ventures 1,264 – – – –
Total average assets 373,604 550,930 24,547 4.46 2.66
Adjustment for trading book funding cost and others 783
Total average assets 373,604 550,930 25,330 4.60 2.74
Average assets
2024
Average
non-interest-
earning balance
$million
Average
interest- earning
balance
$million
Interest income
$million
Gross yield
interest- earning
balance
%
Gross yield total
balance
%
Cash and balances at central banks 9,815 57,294 2,520 4.40 3.76
Gross loans and advances to banks 43,184 44,394 2,368 5.33 2.70
Gross loans and advances to customers 57,614 286,588 16,314 5.69 4.74
Impairment provisions against loans and advances
tobanks and customers – (5,463) – – –
Investment securities – Treasury and Other Eligible Bills 16,101 26,594 1,495 5.62 3.50
Investment securities – Debt Securities 58,362 129,931 5,165 3.98 2.74
Investment securities – Equity Shares 5,278 – – – –
Property, plant and equipment and intangible assets 6,299 – – – –
Prepayments, accrued income and other assets 123,832 – – – –
Investment associates and joint ventures 1,105 – – – –
Total average assets 321,590 539,338 27,862 5.17 3.24
Adjustment for trading book funding cost and others 650
Total average assets 321,590 539,338 28,512 5.29 3.31
Annual Report 2025 | Standard Chartered 441
Supplementary information
Average liabilities
2025
Average
non-interest-
bearing balance
$million
Average
interest- bearing
balance
$million
Interest expense
$million
Rate paid
interest- bearing
balance
%
Rate paid total
balance
%
Deposits by banks 17,545 23,599 664 2.81 1.61
Customer accounts:
Current accounts 41,812 142,460 3,869 2.72 2.10
Savings deposits – 128,464 1,659 1.29 1.29
Time deposits 25,589 198,558 8,128 4.09 3.63
Other deposits 37,551 5,836 222 3.80 0.51
Debt securities in issue 12,702 72,254 3,432 4.75 4.04
Accruals, deferred income and other liabilities 156,522 1,292 66 5.11 0.04
Subordinated liabilities and other borrowed funds – 9,448 552 5.84 5.84
Non-controlling interests 392 – – – –
Shareholders’ funds 50,510 – – – –
342,623 581,911 18,592 3.19 2.01
Adjustment for trading book funding cost and others (4,446)
Total average liabilities and shareholders’ funds 342,623 581,911 14,146 2.43 1.53
Average liabilities
2024
Average
non-interest-
bearing balance
$million
Average
interest- bearing
balance
$million
Interest expense
$million
Rate paid
interest- bearing
balance
%
Rate paid total
balance
%
Deposits by banks 16,834 21,686 806 3.72 2.09
Customer accounts:
Current accounts 41,870 127,624 5,134 4.02 3.03
Savings deposits – 114,641 2,292 2.00 2.00
Time deposits 20,937 187,694 8,340 4.44 4.00
Other deposits 34,954 10,291 510 4.96 1.13
Debt securities in issue 11,958 65,521 3,610 5.51 4.66
Accruals, deferred income and other liabilities 143,771 1,024 60 5.86 0.04
Subordinated liabilities and other borrowed funds – 11,306 744 6.58 6.58
Non-controlling interests 395 – – – –
Shareholders’ funds 50,425 – – – –
321,144 539,787 21,496 3.98 2.50
Adjustment for trading book funding cost and others (4,096)
Total average liabilities and shareholders’ funds 321,144 539,787 17,400 3.22 2.02
Supplementary financial information
Standard Chartered | Annual Report 2025442
Net interest margin
2025
$million
2024
$million
Interest income (reported) 24,547 27,862
Adjustment for trading book funding cost and others
1
783 650
Interest income adjusted for trading book funding cost and others 25,330 28,512
Average interest-earning assets 550,930 539,338
Gross yield (%) 4.60 5.29
Interest expense (reported) 18,592 21,496
Adjustment for trading book funding cost and others (4,446) (4,096)
Interest expense adjusted for trading book funding cost and others 14,146 17,400
Average interest-bearing liabilities 581,911 539,787
Rate paid (%) 2.43 3.22
Net yield (%) 2.17 2.07
Net interest income adjusted for trading book funding cost and others 11,184 11,112
Net interest margin (%) 2.03 2.06
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 and treasury currency management activities 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.
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 152 (546) (394) (455) 142 (313)
Loans and advances to banks 136 (295) (159) 12 261 273
Loans and advances to customers 172 (2,339) (2,167) (845) 1,463 618
Investment securities 31 (626) (595) (362) 420 58
Total interest-earning assets 491 (3,806) (3,315) (1,650) 2,286 636
Interest bearing liabilities
Subordinated liabilities and other
borrowed funds (109) (83) (192) (65) (144) (209)
Deposits by banks 54 (196) (142) (88) 100 12
Customer accounts:
Current accounts and savings deposits 595 (2,488) (1,893) (69) 1,343 1,274
Time and other deposits 314 (813) (499) 242 483 725
Debt securities in issue 320 (498) (178) (3) 239 236
Total interest-bearing liabilities 1,174 (4,078) (2,904) 17 2,021 2,038
Annual Report 2025 | Standard Chartered 443
Supplementary information
Supplementary people information
Global
1
2025 2024 2023 2022 % change
Full-time equivalent (FTE) 81,832 81,097 84,958 83,195 0.9
Headcount (year end) 81,892 81,145 85,007 83,266 0.9
Employed workers (permanent) 81,047 80,459 84,073 82,319 0.7
Of which: women 36,498 36,217 37,598 37,259 0.8
Fixed-term workers (temporary) 845 686 934 947 23.2
Of which: women 423 336 453 429 25.9
Non-employed workers (NEW) 17,010 13,667 12,537 13,962 24.5
Non-outsourced (NEW)
2
7,991 5,149 4,925 5,873 55.2
Outsourced (NEW)
3
9,019 8,518 7,612 8,089 5.9
Headcount (12-month average) 81,204 83,292 85,353 82,987 (2.5)
Men
FTE 44,097 43,653 45,993 44,709 1.0
Headcount 44,116 43,665 46,004 44,734 1.0
Full time 43,958 43,615 45,975 44,683 0.8
Part time 158 50 29 51 216.0
Women
FTE 36,882 36,518 38,014 37,642 1.0
Headcount 36,921 36,553 38,051 37,688 1.0
Full time 36,711 36,410 37,926 37,551 0.8
Part time 210 143 125 137 46.9
Undisclosed
4
FTE 853 926 950 844 (7.9)
Headcount 855 927 952 844 (7.8)
Full time 845 921 944 843 (8.3)
Part time 10 6 8 1 66.7
Nationalities 138 133 129 131 3.8
Position type 2025 2024 2023 2022 % change
Management team 10 14 13 13 (28.6)
Of which: women 5 6 7 6 (16.7)
Of which: women (%) 50 42.9 53.8 46.2 16.7
Management team and their directreports
5
97 123 133 131 (21.1)
Of which: women 32 42 48 43 (23.8)
Of which: women (%) 33.0 34.1 36.1 32.8 (3.4)
Senior leadership
6
4,532 4,385 4,541 4,422 3.4
Of which: women 1,497 1,453 1,474 1,420 3.0
Of which: women (%) 33.0 33.1 32.5 32.1 (0.3)
Rest of employees 77,360 76,760 80,466 78,844 0.8
Of which: women 35,424 35,100 36,577 36,268 0.9
Of which: women (%) 45.8 45.7 45.5 46.0 0.1
Of which: who have supervisory responsibilities 9,863 9,912 11,009 11,067 (0.5)
Of which: women 3,589 3,593 3,905 3,995 (0.1)
Of which: women (%) 36.4 36.2 35.5 36.1 0.4
Business FTE 29,594 29,544 29,909 30,589 0.2
Business headcount 29,621 29,563 29,929 30,619 0.2
Of which: women 15,309 15,331 15,335 15,794 (0.1)
Support services FTE 52,238 51,554 55,049 52,607 1.3
Support services headcount 52,271 51,582 55,078 52,647 1.3
Of which: women 21,612 21,222 22,716 21,894 1.8
Standard Chartered | Annual Report 2025444
Region
7
2025 2024 2023 2022 % change
Asia FTE 68,888 67,911 71,097 69,329 1.4
Asia headcount 68,920 67,936 71,123 69,364 1.4
Asia women headcount 31,719 31,264 32,452 32,033 1.5
Asia employed workers headcount 68,276 67,452 70,394 68,585 1.2
Asia fixed-term workers headcount 644 484 729 779 33.1
Asia full-time headcount 68,649 67,819 71,051 69,257 1.2
Asia part-time headcount 271 117 72 107 131.6
Africa FTE 3,561 3,984 4,452 4,777 (10.6)
Africa headcount 3,562 3,985 4,453 4,777 (10.6)
Africa women headcount 1,881 2,085 2,333 2,497 (9.8)
Africa employed workers headcount 3,494 3,904 4,366 4,729 (10.5)
Africa fixed-term workers headcount 68 81 87 48 (16.0)
Africa full-time headcount 3,558 3,981 4,452 4,775 (10.6)
Africa part-time headcount 4 4 1 2 –
Middle East FTE 4,054 4,035 4,123 4,128 0.5
Middle East headcount 4,060 4,036 4,124 4,144 0.6
Middle East women headcount 1,442 1,430 1,433 1,421 0.8
Middle East employed workers headcount 3,981 3,978 4,066 4,084 0.1
Middle East fixed-term workers headcount 79 58 58 60 36.2
Middle East full-time headcount 4,058 4,036 4,122 4,142 0.5
Middle East part-time headcount 2 – 2 2 –
Americas FTE 1,129 1,077 1,154 1,090 4.8
Americas headcount 1,129 1,077 1,154 1,091 4.8
Americas employed workers headcount 1,129 1,077 1,154 1,091 4.8
Americas fixed-term workers headcount – – – – –
Americas full-time headcount 1,120 1,076 1,153 1,088 4.1
Americas part-time headcount 9 1 1 3 800.0
Europe FTE 4,200 4,090 4,132 3,871 2.7
Europe headcount 4,221 4,111 4,153 3,890 2.7
Europe women headcount 1,387 1,301 1,322 1,249 6.6
Europe employed workers headcount 4,167 4,048 4,093 3,830 2.9
Europe fixed-term workers headcount 54 63 60 60 (14.3)
Europe full-time headcount 4,129 4,034 4,067 3,815 2.4
Europe part-time headcount 92 77 86 75 19.5
Age 2025 2024 2023 2022 % change
<30 years FTE 10,794 10,968 13,168 13,826 (1.6)
<30 years headcount 10,807 10,973 13,176 13,836 (1.5)
<30 years women headcount 5,558 5,775 6,848 7,397 (3.8)
30–50 years FTE 63,088 62,663 63,309 61,651 0.7
30–50 years headcount 63,122 62,689 63,334 61,691 0.7
30–50 years women headcount 27,795 27,433 27,432 26,870 1.3
>50 years FTE 7,950 7,467 8,480 7,718 6.5
>50 years headcount 7,963 7,483 8,497 7,739 6.4
>50 years women headcount 3,568 3,345 3,771 3,421 6.7
Annual Report 2025 | Standard Chartered 445
Supplementary information
Supplementary people information
Talent management
8
2025 2024 2023 2022 % change
Global voluntary turnover – FTE 7,182 7,491 8,200 12,645 (4.1)
Global turnover – FTE 9,507 10,505 9,712 14,388 (9.5)
Global voluntary turnover rate (%) 8.9 9.1 9.7 15.5 (1.7)
Global turnover rate (%) 11.8 12.7 11.5 17.6 (7.2)
Men turnover FTE 5,295 5,854 5,214 8,021 (9.6)
Men (%) 12.2 13.1 11.4 18.2 (6.9)
Women turnover FTE 4,143 4,546 4,394 6,230 (8.9)
Women (%) 11.4 12.3 11.6 16.8 (7.1)
Women as a % of global turnover FTE 43.6 43.3 45.2 43.3 0.7
Asia turnover FTE 7,970 8,780 8,293 12,501 (9.2)
Asia (%) 11.8 12.7 11.8 18.4 (7.2)
Africa turnover FTE 498 609 387 523 (18.3)
Africa (%) 13.5 14.7 8.6 10.8 (8.7)
Middle East turnover FTE 493 460 475 523 7.2
Middle East (%) 12.5 11.4 11.4 12.7 9.2
Americas turnover FTE 129 171 120 188 (24.6)
Americas (%) 11.7 15.1 10.5 17.8 (22.7)
Europe turnover FTE 417 485 438 653 (13.9)
Europe (%) 10.2 11.9 11.0 17.7 (14.3)
<30 years turnover FTE 2,094 2,302 2,593 4,137 (9.0)
<30 years (%) 20.1 19.6 19.2 30.5 2.5
30–50 years turnover FTE 6,286 7,067 6,242 9,303 (11.0)
30–50 years (%) 10.3 11.4 9.9 15.2 (9.3)
>50 years turnover FTE 1,127 1,137 878 947 (0.8)
>50 years (%) 12.5 13.3 11.0 13.1 (6.2)
Average tenure (years) – men 7.9 7.8 7.3 7.1 1.3
Average tenure (years) – women 8.6 8.4 7.9 7.6 2.4
Global new hires – FTE
9
10,581 7,176 12,145 17,432 47.4
Global new hire rate (%) 13.0 8.6 14.2 21.0 51.3
Men new hire FTE 5,915 3,777 6,875 9,683 56.6
Men (%) 13.5 8.4 14.9 21.7 61.3
Women new hire FTE 4,666 3,314 5,044 7,384 40.8
Women (%) 12.8 8.9 13.2 19.6 43.6
Women as a % of global new hires FTE 44.1 46.2 41.5 42.4 (4.5)
Asia new hire FTE 9,226 6,077 10,653 15,441 51.8
Asia (%) 13.5 8.7 14.9 22.4 55.4
Africa new hire FTE 152 202 236 463 (24.8)
Africa (%) 4.0 4.8 5.2 9.3 (16.0)
Middle East new hire FTE 482 381 379 471 26.5
Middle East (%) 12.0 9.3 9.0 11.3 28.1
Americas new hire FTE 163 77 156 180 111.7
Americas (%) 14.7 6.8 13.7 17.0 116.8
Europe new hire FTE 558 439 721 876 27.0
Europe (%) 13.5 10.7 17.8 23.3 26.6
<30 years new hire FTE 4,371 3,109 4,963 7,673 40.6
<30 years (%) 40.8 25.8 35.5 54.7 58.1
30–50 years new hire FTE 5,915 3,856 6,841 9,357 53.4
Standard Chartered | Annual Report 2025446
Talent management
8
2025 2024 2023 2022 % change
30–50 years (%) 9.7 6.2 10.8 15.2 56.5
>50 years new hire FTE 295 211 341 401 40.1
>50 years (%) 3.2 2.4 4.2 5.4 32.5
Roles filled internally (%)
9
47.4 45.7 32.3 37.3 3.8
Of which: filled by women (%) 40.9 40.7 41.6 41.0 0.6
Absenteeism rate (%)
10
1.3 1.3 1.3 1.4 (5.3)
Job fit with interest (%)
11
75.0 79.0 80.0 77.0 (5.1)
Learning
12
2025 2024 2023 2022 % change
Employees receiving training (%) 99.2 99.1 99.5 99.5 0.1
Women (%) 99.2 99.2 – – –
Men (%) 99.1 99.1 – – –
Undisclosed (%)
4
98.4 99.0 – – (0.6)
Senior leadership (%)
6
99.7 99.8 – – (0.1)
Non Senior Role
13
99.1 99.1 – – –
Employees receiving training for personal
development(%) 89.8 92.7 96.2 91.6 (3.1)
Women (%) 87.5 92.5 95.8 90.0 (5.4)
Men (%) 91.7 92.7 96.5 92.9 (1.1)
Senior leadership (%)
6
95.0 88.8 93.4 94.9 7.0
Average number of training hours per employee 36.8 34.8 38.0 36.9 5.6
Women 35.7 33.8 37.0 35.4 5.6
Men 37.6 35.5 38.8 38.1 5.9
Undisclosed
4
37.6 40.6 – – (7.4)
Employed workers 36.7 34.9 38.1 37.1 5.2
Fixed-term workers 41.4 25.0 33.3 21.9 65.7
Senior leadership
6
34.5 27.4 – – 25.9
Non senior role
13
36.9 35.2 – – 4.8
Average cost of training per employee ($)
14
706 702 730 743 0.5
Diversity 2025 2024 2023 2022 % change
% of women remained employed 12 months after
theirreturn from parental leave 80.3 79.5 75.2 72.4 1.0
% of employees that remained employed
bythecompany 12 months after their return
fromparental leave 82.2 82.1 79.1 72.6 0.2
% of Information Technology (IT) and/or Engineering
roles filled by women
15
24.6 24.4 24.2 24.0 1.2
% of senior leadership and managerial roles filled
bywomen
6,16
35.3 35.3 34.6 35.0 0.1
% of middle management roles filled bywomen
16
36.4 36.2 35.5 36.1 0.4
% of non-managerial positions filled bywomen
16
47.0 47.2 47.0 47.6 (0.4)
% of women total promotions 46.8 47.6 46.0 46.1 (1.7)
Executive and non-executive directors
17
Men 6 7 8 8 (14.3)
Women 5 5 5 6 –
Men (%) 54.5 58.3 61.5 57.1 (6.5)
Women (%) 45.5 41.7 38.5 42.9 9.1
White British or other White
(including minority-White groups) 7 8 9 11 (12.5)
Asian/Asian British 4 4 4 3 –
Black/African/Caribbean/Black British – – – – –
Annual Report 2025 | Standard Chartered 447
Supplementary information
Diversity 2025 2024 2023 2022 % change
Mixed/Multiple Ethnic groups – – – – –
Other Ethnic group
20
– – – – –
White British or other White
(including minority-White groups) (%) 63.6 66.7 69.2 78.6 (4.5)
Asian/Asian British (%) 36.4 33.3 30.8 21.4 9.1
Black/African/Caribbean/
Black British (%) – – – – –
Mixed/Multiple Ethnic groups (%) – – – – –
Other Ethnic group (%) – – – – –
Number of senior positions (CEO, CFO, SID and Chair)
18
Men 3 3 3 3 –
Women 1 1 1 1 –
White British or other White
(including minority-White groups) 4 4 4 4 –
Asian/Asian British – – – – –
Black/African/Caribbean/Black British – – – – –
Mixed/Multiple Ethnic groups – – – – –
Other Ethnic group
20
– – – – –
Executive management
19
11 15 14 14 (26.7)
Men 6 9 7 8 (33.3)
Women 5 6 7 6 (16.7)
Men (%) 54.5 60.0 50.0 57.1 (9.1)
Women (%) 45.5 40.0 50.0 42.9 13.6
White British or other White
(including minority-White groups) 7 6 5 6 16.7
Asian/Asian British 4 6 6 6 (33.3)
Black/African/Caribbean/Black British – 1 1 1 (100.0)
Mixed/Multiple Ethnic groups – – – – –
Not specified/prefer not to say – 1 2 1 (100.0)
Other Ethnic group
20
– 1 – – (100.0)
White British or other White
(including minority-White groups) (%) 63.6 40.0 35.7 42.9 59.1
Asian/Asian British (%) 36.4 40.0 42.9 42.9 (9.1)
Black/African/Caribbean/Black British (%) – 6.7 7.1 7.1 (100.0)
Mixed/Multiple Ethnic Groups (%) – – – 0.0 –
Not specified/prefer not to say (%) – 6.7 14.3 7.1 (100.0)
Other Ethnic group (%) – 6.7 – – (100.0)
UK senior leadership (% declared)
6,21
UK Black Ethnicity 1.5 2.5 2.5 2.5 (38.0)
UK Ethnic Minority 19.3 28.4 27.8 26.4 (32.1)
Work-related Health & Safety 2025 2024 2023 2022 % change
Fatalities – – 3 1 –
Fatalities (rate per million hours worked) – – 0.03 0.01 –
Major injuries
22,23,24,25
16 15 21 20 6.7
Major injuries (rate per million hours worked)
26
0.1 0.08 0.11 0.11 25.0
Recordable work-related injuries
27,28
142 125 115 83 13.6
Recordable work-related injuries
(rate per million hoursworked)
26,27
0.9 0.7 0.59 0.44 28.6
Work-related ill-health (fatalities) – – – – –
Lost Time Injuries (rate per million hours worked)
26
0.1 0.13 Not reported Not reported –
Supplementary people information
Standard Chartered | Annual Report 2025448
1 Excludes 500 employees (headcount) from Digital Ventures entities (Appro, Audax, Cashenable, Furaha, Labamu, Letsbloom, Libeara, MyZoi, Solv Kenya,
TASConnect, Qatalyst, Zodia Custody, Zodia Markets). Excludes 456 Person of Interest (headcount) following a recategorisation of worker types from 2022,
i.e.independent non-executive directors, advisors, external auditors and regulators.
Includes employees operating in discontinued/restructured businesses.
Percentage change refers to the percentage change from 2024 to 2025.
All figures above are presented to one decimal place and the corresponding percentage changes are derived from actual data without rounding toone
decimalplacetoremain as accurate as possible.
2 Non-outsourced NEWs are resources engaged on a time and materials basis where task selection and supervision is the responsibility of the Bank,
suchasagencyworkers.
3 Outsourced NEWs are arrangements with a third-party vendor where the delivery is based on a specific service or outcome at an agreed price, irrespective
ofthenumber of resources required to perform the service. These resources are not considered as the Group’s headcount.
4 The disclosure of gender information is not mandatory in some markets.
5 Management Team and colleagues who report to them, excluding administrative or executive support roles (personal assistant, business planning managers).
6 Senior leadership is defined as Managing Directors and Band 4 (including Management Team).
7 Region metrics are now aligned with the geographical regions and all prior periods’ data has been aligned with these geographical regions.
8 Turnover metrics are based on permanent employed workers only. New hire metrics are based on external new hires. Turnover and new hire metrics are based
onaverage 12 month FTE. These metrics are not shown for the undisclosed gender population due to a small population size.
9 Approximately 50 per cent increase in hiring volumes from 2024 to 2025 represents a deliberate and aggressive re-acceleration. This step change reflects not only
renewed growth momentum, but also pent-up demand resulting from prior year hiring constraints. The scale of the increase for both FTE and NEW is driven by
acombination of factors, including (a) Growth hiring in priority areas like CIB tech, WRB Tech, CIB Ops, WRB Ops (b)Capability building in areas like AI, Data
aligned with strategic initiatives (c) Targeted hiring for specific programs, such as FFG, Keystone, Catalyst. This expansion has been supported through a balanced
mix offull-time hires and NEW hiring channels/models, ensuring functions but especially T&O maintains both speed and quality while scaling.
10 Represents health and disability related absence.
11 ‘Employee job satisfaction’ question has been retired and replaced with ‘Job fit with interest’ which is part of the Employee Value Proposition (EVP) questions.
12 Learning metrics exclude non-employed workers (NEWs). Training for personal development is defined as all training excluding mandatory or role specific training.
The strength of our learning agenda is reflected with 99.2 per cent of our employees receiving training in 2025. Across the year, we have consolidated learning
programmes to more effectively and efficiently deliver skills and knowledge-building to colleagues. The biggest campaigns (as driven by business / function heads)
were in spaces like AI and New programmes have been designed to focus on ‘in the flow of work’ which has been a driver of digital consumption. These actions
have resulted in an increase of the number of overall training hours per employee.
13 All colleagues excluding Senior leadership as defined in 6.
14 Average cost of training per employee includes cost of learning management system.
15 Represents the percentage of Information Technology (IT) and/or Engineering roles filled by women. IT and/or engineering roles is defined as employees who
workin the ITjob function, including engineering roles (excluding Innovation, Transformation and Ventures) and/or certain job families in the Data and
Analyticsjob function.
16 Represents the percentage of women that are in the respective population groups. For the purpose of this metric, managerial/middle management roles
areconsidered as roles that have people leader responsibilities excluding senior leadership. Non-managerial roles do not have people leader responsibilities.
17 Executive and non-executive directors refer to the UK PLC Board. Data has been collected by way of the directors’ annual self-declarations.
18 For the purpose of this metric, senior positions in the Board include the Group Chair, Group Chief Executive, Group Chief Financial Officer
andSeniorIndependentDirector.
19 For the purpose of this metric, executive management refers to Management team plus Group Company Secretary.
20 Other Ethnic Group: ‘All other ethnic groups excluding White, Asian, Black and Mixed’.
21 Ethnicity percentage has been derived based on colleagues who have declared their ethnicity against the overall UK population (includingcolleagueswhohave
not made a declaration).
22 Out of 16 major injuries, 10 are commuting related.
23 Per UK HSE definition, and local reporting requirements.
24 Most common type of major injury is fractures (56%).
25 2025 includes five contractor/visitor. 2024 includes three contractor/visitor. 2023 includes five contractor/visitor. 2022 includes one contractor/visitor.
26 2025 hours worked 158,361,339. 2024 hours worked 179,485,255. 2023 hours worked 192,870,120. 2022 hours worked 188,758,285.
27 2025 includes 37 contractor/visitor. 2024 includes 21 contractor/visitor. 2023 includes 31 contractor/visitor. 2022 includes 18 contractor /visitor.
28 These figures were updated with 4 injuries recorded in 2025 but occurred in 2024.
Annual Report 2025 | Standard Chartered 449
Supplementary information
Environmental and Social Risk Management (ESRM)
2025 2024 2023
Number of participants in ESRM training sessions¹ 12,864
2
3,029
3
2,609
4
Number of transactions reviewed 685 747 708
Number of clients reviewed 1,204 1,449 1,341
Client exits due to non-compliance with Position Statements 6 10 41
Equator Principles reporting
Project finance mandates Project-related corporate loans
Project-related refinance
&project-related
acquisitionfinance⁸
Project finance
advisoryservices⁹
Cat A
5
Cat B
6,10
Cat C
7
Cat A Cat B Cat C Cat A Cat B Cat C
Total 2023 13 23 3 1 4 2 – – 1 1
Total 2024
11
11 32 8 7 6 2 1 2 1 1
Total 2025 13 41 16 5 5 4 1 1 – 4
2025
Project finance
mandates
Project-related
corporate loans
Project-related refinance
&project-related
acquisitionfinance⁸
Project finance
advisoryservices⁹
A B C A B C A B C
Sector
Mining – – – – – – – – – –
Infrastructure 1 17 15 3 3 3 – – – 1
Oil and Gas 4 – – 1 – – – – – 3
Power 8 23 1 – 1 – 1 1 – –
Others
12
– 1 – 1 1 1 – – – –
Region
Americas 3 9 9 – 1 – – – – –
Asia-Pacific 3 20 6 2 – 4 – – – –
Europe, Middle East and Africa 7 12 1 3 4 – 1 1 – 4
Designation
13
Designated Country 4 13 12 – 1 1 – – – –
Non-Designated Country 9 28 4 5 4 3 1 1 – –
Independent review
Yes 13 30 6 5 4 – 1 1 – –
No – 11 10 – 1 4 – – – –
1 The metric was updated in 2023 as all participants are counted for each live training or e-learning session. An employee may attend either or both types of training
during the year.
2 Includes 3,103 participants in live training sessions and 9,761 participants who completed e-learning sessions. The increase in the number of e-learning attendees
isdue to the rise in WRB completion numbers for the Sustainability Foundation Programme. Additionally, the number of live trainings conducted, along with the
number of participants, increased due to a process improvement in the client ESGRA process in 2025. Consequently, ESRM has conducted additional upskilling
sessions and Position Statements briefing trainings.
3 Includes 2,261 participants in live training sessions and 768 participants who completed e-learning sessions.
4 Includes 1,338 participants in live training sessions and 1,271 participants who completed e-learning sessions.
5 Cat A or Category A are projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
6 Cat B or Category B are projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific,
largelyreversible and readily addressed through mitigation measures.
7 Cat C or Category C are projects with minimal or no adverse environmental and social risks and/or impacts.
8 In line with Equator Principles (EP4), Standard Chartered now reports those transactions that trigger project-related refinance and project-related acquisition
finance.
9 In line with Equator Principles (EP4), Standard Chartered only requires to report the sector and region for Project Finance Advisory Services, and may exclude
theCategory and Independent Review, as the projects are often at an early stage of development and not all information is available.
10 The Group’s 2023 number of Cat B Project Finance mandates was erroneously reported at 29 cases in the 2024 Annual Report and Accounts and we have restated
this to 23 projects to correct this error.
11 2024 numbers are restated as additional transactions have been identified in 2025 reporting cycle.
12 Sectors covered under ‘others’ include agro-industries, transport, chemicals and manufacturing.
13 Designation is split into Designated and Non-Designated Countries. Designated Countries are deemed by the Equator Principles to have robust environmental
andsocial governance, legislation systems and institutional capacity designed to protect their people and the natural environment. Non-Designated Countries
arecountries that are not found on the list of Designated Countries. The list of countries can be found at www.equator-principles.com.
Supplementary sustainability
information
Standard Chartered | Annual Report 2025450
Environment
Units 2025 2024 2023
2024 – 2025
% change
Reporting coverage of data
Offices reporting No. of offices 796 824 762 -3%
Net internal area of occupied property m
2
864,961 850,817 880,515 2%
Annual operating income from 1 October to 30 September $million 20,818 19,110 17,414 9%
Scope 1 and 2 GHG emissions
1
Scope 1 emissions
2
tCO
2
e 5,792 7,696 8,488 -25%
Scope 2 emissions (location-based) tCO
2
e 74,591 82,837 85,741 -10%
Scope 2 emissions (market-based) tCO
2
e 0 17,272 26,246 -100%
Total Scope 1 and 2 emissions (market-based) tCO
2
e 5,792 24,968 34,734 -77%
Scope 1 and 2 emissions (UK and offshore area only) tCO
2
e 0 0 248 0%
Scope 3 GHG emissions
3
Category 1: Purchased goods and services
4
tCO
2
e 251,761 319,078 346,819 -21%
Category 2: Capital goods tCO
2
e 41,799 43,716 42,707 -4%
Category 4: Upstream transportation and distribution
5
tCO
2
e 16,904 27,268 24,125 -38%
Category 5: Waste generated inoperations tCO
2
e 349 379 520 -8%
Category 6: Business travel (airtravel) tCO
2
e 52,375 53,326 48,046 -2%
Category 6: Business travel (miscellaneous other than air travel) tCO
2
e 8,446 16,420 8,918 -49%
Category 7: Employee commuting
6
tCO
2
e 60,348 81,065 71,228 -26%
Category 8: Upstream leased assets
7
tCO
2
e 4,397 4,186 4,431 5%
Category 13: Downstream leased assets (real estate)
8
tCO
2
e 4,799 7,119 7,898 -33%
Category 15: Investments
9,10
tCO
2
e 50,880,000 47,661,000 45,337,000 7%
Total Scope 3 tCO
2
e 51,321,178 48,213,557 45,891,692 6%
Total Scope 1, 2 and 3 tCO
2
e 51,326,970 48,238,525 45,926,426 6%
1 Our Scope 1 and 2 emissions and Scope 3 Category 8: Upstream leased assets (data centres) emissions calculations for the most recent reporting year were
independently assured by Global Documentation Ltd. The assurance scope includes the owned vehicle fleet and fugitive emissions.
2 As we aim to improve our emissions measurement and reporting year-on-year, we have included owned vehicle fleet emissions in our Scope 1 data since 2024
(733tCO
2
e in 2025 and 1,340 tCO
2
e in 2024) and fugitive emissions since 2023 (3,035 tCO
2
e in 2025, 3,877 tCO
2
e in 2024 and 5,266 tCO
2
e in 2023).
3 Scope 3 Category 3, Category 9, Category 10, Category 11, Category 12 and Category 14 are not relevant for the Group due to the nature of our business, products
and services and operations, such that their emissions are not deemed material. Emissions from Scope 3 Category 2, Category 4, Category 5, Category 7, Category 8
and Category 13 are also not deemed material.
4 We have restated our Scope 3 Category 1: Purchased goods and services emissions data for the 2024 reporting year from 345,193 tCO
2
e to 319,078 tCO
2
e due to one
of our largest suppliers (by spend) restating their publicly reported emissions. The supplier restatement is a result of improved data accuracy within its calculations.
5 We recognise the role of sustainable aviation fuel (SAF) as a lever in lifecycle greenhouse gas (GHG) emissions of logistics emissions. In line with emerging
international standards and guidance, we account for the use of SAF in our emissions calculations by applying its verified lifecycle carbon intensity compared
toconventional jet fuel for our logistics emissions. Our emissions reductions from SAF (through The Book and Claim Model) are only recognised when supported
byrobust certification, traceability, and sustainability criteria to avoid double counting and ensure genuine climate benefit. We will continue to monitor evolving
standards to align with best practice as frameworks mature. Category 4 emissions for 2025 were 17,467 t CO
2
e when excluding the purchase of SAF.
6 Category 7: Employee commuting includes both emissions from commuting (28,864 tCO
2
e) and emissions associated with home office working (31,484 tCO
2
e).
7 Emissions from third-party collocated data centres have been reclassified to Scope 3 Category 8 from Scope 3 Category 1. We reevaluated the nature of our lessee
relationship with these assets and, in line with the GHG Protocol, believe this data aligns more closely to Scope 3 Category 8. We have reclassified these emissions
inour 2023 and 2024 comparatives, which were already reported separately from other Category 1 emissions.
8 Category 13: Downstream leased assets are leased spaces within locations where the Group is either the owner or main tenant of the building.
9 Category 15: Investments includes financed and facilitated emissions and are measured on a one- to two-year lag based on the availability of third-party and client
data. Facilitated emissions are calculated on a three-year rolling average. Category 15 emissions are rounded to the nearest 1,000 tCO
2
e.
10 Prior year total financed emissions have been restated following a restatement in the oil and gas sector absolute emissions. The prior period has been restated
toapply the Group’s methodology of only counting Scope 3 emissions on upstream production activities (including diversified and integrated counterparties).
Therewas no impact on the baseline year.
Annual Report 2025 | Standard Chartered 451
Supplementary information
Units 2025 2024 2023
2024 – 2025
% change
Scope 1 and 2 GHG emissions (market-based) intensity tCO
2
e/$ million 0 1 2 -100%
Environmental resource efficiency
Energy
Indirect non-renewable energyconsumption GWh 126 125 142 1%
Indirect renewable energyconsumption GWh 13 14 16 -7%
Direct non-renewable energyconsumption GWh 8 12 13 -33%
Direct renewable energyconsumption GWh 2 2 2 0%
Energy consumption GWh 150 154 173 -3%
Energy consumption intensity GWh/$ million 0.0072 0.0081 0.0099 -11%
Energy consumption (UK and offshore area only) GWh 5 7 6 -29%
Water
Water consumption million litres 413 446 393 -7%
Water intensity kL/m
2
0.4775 0.5242 0.4463 -9%
Waste
1
Waste generated kg 670,935 725,230 998,407 -7%
Waste intensity kg/m
2
0.7757 0.8524 1.1339 -9%
Waste reused or recycled % 74 61 52 21%
1 Does not include any hazardous waste.
Supplementary sustainability information
Hong Kong Stock Exchange ESG Reporting Code
Scopes 1 and 2 emissions disclosure
Part D of the ESG Reporting Code (Appendix C2 to The Rules
Governing the Listing of Securities on the Stock Exchange
ofHongKong Limited), paragraph 17(1), requires issuers to
disclose their Scope 1 and Scope 2 greenhouse gas emissions
pursuant to paragraphs 28(a), 28(b) and 29 on a mandatory
basis for the same reporting period as the annual report.
Therefore, we have provided our estimated Scope 1 and 2
emissions for the 1 January 2025 to 31 December 2025
reporting period in the following table.
This differs from the Scope 1 and 2 emissions disclosed
elsewhere in this Annual Report, which are reported for the
period 1 October 2024 to 30 September 2025 to align our
reporting with the reporting period used in previous years
andfor target setting. This allows comparability over time
and with our 2025 Scope 1 and 2 net zero emissions target.
Reporting year to 30 September 2025 allows sufficient time
for independent third-party assurance to be completed and
for obtaining external third-party data where needed prior
tothe publication of the Group’s Annual Report.
1 January 2025 to 31 December 2025 emissions
2025
t CO
2
e
Scope 1 and 2 GHG emissions
Scope 1 emissions 5,751
Scope 2 emissions 75,162
Total Scope 1 and 2 emissions 80,913
These emissions have been measured in accordance with
thelocation-based measurement approach under the
Greenhouse Gas Protocol for 1 January 2025 to 31 December
2025, using all reasonable and supportable information that
was available to the Group at the reporting date without
undue cost or effort. The totals include an estimate of the
emissions for 1 October 2025 to 31 December 2025, as only
partial data is available for this quarter. This has not been
assured and has been calculated using the fourth quarter
of2024 as a proxy to avoid seasonal variations, updated
where possible for reviewed data available.
All other inputs and assumptions (e.g. emissions factors
andboundaries) are the same as those described on page
93and in our Environmental Reporting Criteria available
atsc.com/sustainabilitylibrary.
Standard Chartered | Annual Report 2025452
Supplier spend
% of total
third-party
spend
Number of
supplier
organisations with
spend in 2025
Number of
local suppliers
(bypayment
market
1,2)
Number of
global suppliers
4
(by payment
market)
Top 10 sourcing locations by % overall spend
Singapore 37.34% 1,341 902 439
United Kingdom 17.47% 803 507 296
Hong Kong 14.40% 738 458 280
India 7.00% 1,816 1,644 172
China³ 4.01% 821 723 98
Korea 3.66% 532 505 27
United Arab Emirates 2.04% 370 208 162
Malaysia 1.57% 444 333 111
United States 2.75% 283 152 131
Taiwan 1.72% 456 382 74
Regional spend
Asia 72.32% 6,934 6,333 601
Europe and Americas 21.56% 1,247 901 346
Africa and the Middle East 6.12% 2,442 2,155 287
Category spend
Technology 42.54% 1,501 1,276 225
Professional Services 16.23% 1,804 1,625 179
Property 13.76% 2,190 2,133 57
Marketing 13.42% 1,622 1,538 84
Human Resources 7.89% 1,259 1,150 109
Banking Operations 3.41% 342 315 27
Travel 1.71% 376 344 32
Office Supplies 0.68% 656 633 23
Others 0.35% 377 375 2
1 Suppliers are counted by generic name (e.g. all DHL legal entities are counted as one DHL).
2 The same supplier may be used in more than one market.
3 ‘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.
4 Suppliers with payments in more than one market.
Annual Report 2025 | Standard Chartered 453
Supplementary information
1. Mobilise sustainable finance
Pillar Key performance indicators Period Status 2025 progress update
Sustainable
finance
Mobilise $300 billion in sustainable
finance (SF)¹
2021–
2030
Mobilised $157 billion between January 2021 and
September 2025. Strong progress was made in 2025
despite contrasting regional sentiment. We remain
on track for our overall target in 2030.
2. Operationalise interim 2030 financed emissions targets to meet our 2050 net zero ambition
Pillar Key performance indicators Period Status 2025 progress update
Operations Net zero in our operations
(Scope1and 2 GHG)
2019–
2025
In 2025, we achieved our net zero target across Scope
1 and 2 emissions, marking a significant milestone.
We reduced our carbon footprint by 96 per cent
froma 2018 baseline of 148 ktCO
2
e to just 6 ktCO
2
e.
This achievement underscores our commitment to
decarbonise our real estate portfolio and aligns
withthe overall Group’s net zero agenda. Residual
emissions that persist despite our rigorous efforts to
minimise them are counterbalanced by purchasing
and retiring carbon credits as described in the
carboncredits section on page 94.
Increase renewable energy sourcing
to 100% by 2025 (RE100 compliant)
2022–
2025
Our RE100 performance for 2025 is 95 per cent.
Whilewe strived to achieve 100 per cent, market
maturity varies significantly by geography, which
constrains full coverage, particularly within Africa
and the Middle East (for example, Bahrain, Qatar,
Botswana, Cameroon, Côte d’Ivoire, Tanzania and
Zambia). Inthese markets we continue to actively
monitor developments and aim to transition to RE100
certified mechanisms as they become available.
Divert 90% of waste from the
landfillby 2030
2020–
2030
We continue to push for 90 per cent waste
avoidance from landfill by 2030. Overall, this
commitment translates to better waste segregation
and management through awareness programmes.
As of 2025, we have reduced our overall waste
generated by 49 per cent from our 2018 baseline and
achieved 74 per cent avoidance from landfill.
Suppliers Direct at least 50% of our total
spend
2
with suppliers who have
setscience-based emissions
reductiontargets
2023–
2027
In 2025, we allocated 54 per cent of our total supplier
expenditure to partners who have science-based
emissions reduction targets. This achievement
highlights our commitment to the decarbonisation
ofour supply chain in support of the Group’s net
zeroagenda.
1 We define mobilisation of sustainable finance as our share of any investment or financial service provided to clients that supports: (1) the preservation and/or
improvement of biodiversity, nature or the environment; (2) the long-term avoidance/decrease of GHG emissions, including the alignment of a client’s business
andoperations with a 1.5°C trajectory or national net zero pathway (known as transition finance); (3) a social purpose; or (4) incentivising our clients to meet their
own sustainability objectives (known as sustainability-linked finance). It is a measure of total capital mobilised and considers the total value committed on facilities
provided to clients. Mobilisation is the provision of capital that, as per the legal contractual documents, meet the sustainable finance verification criteria, or SLL
eligibility, as of the date of execution of the trade.
2 Spend includes Scope 3, Category 1: Purchased Goods and Services and Capital Goods suppliers excluding non-addressable spend. Addressable spend is defined
asexternal costs incurred by Standard Chartered in the normal course of business where Supply Chain Management has influence over where the spend is placed.
It excludes costs such as government and brokerage fees, rates and taxes and employee expenses. It also excludes any Category 1 co-location data centres, which
are calculated on energy use and reported separately under Scope 3.
Supplementary sustainability information
Sustainability Aspirations
Standard Chartered | Annual Report 2025454
2. Operationalise interim 2030 financed emissions targets to meet our 2050 net zero ambition
Pillar Key performance indicators Period Status 2025 progress update
Financed
emissions
Achieve 2030 interim financed
emissions reduction in our highest
emitting sectors
1
:
• -29% in Oil and Gas (absolute)
from a 2020 baseline
• -46–67% in Power (production
intensity) from a 2021 baseline
• -22–32% in Steel (production
intensity) from a 2021 baseline
• -85% emissions reduction in
Thermal Coal Mining (absolute)
from a 2020 baseline
• Maintain a 1.5°C compliant
production-intensity in Aluminum
from a 2021 baseline
• Reduce our alignment delta
inShipping to 0% from
a2021baseline
• -44–63% in Automotive
Manufacturers (physical intensity)
from a 2021 baseline
• -22% in Cement (production
intensity) from a 2021 baseline
• -47–74% in Commercial Real Estate
(production intensity) from
a2021baseline
• 33% reduction in aviation sector
physical intensity from
a2021baseline
• -15–23% in Residential Mortgages
(production intensity) from
a2021baseline
• Agriculture target of 2.4-2.6°C
Implied Temperature Rise against
a 2023 (2.96°C) baseline
2020/
2021/
2023–
2030
Progress on our net zero sector targets remains
ontrack for most high emitting sectors.
An increase in emissions was observed in the
aluminum sector; however, the sector remains below
the 2030 target.
Portfolio progress slowed slightly in the automotive
manufacturing sector. The sector is however still
trending down towards the 2030 target.
Read more on our progress towards our interim
net zero targets on pages 97 to 107
Facilitated
emissions
Achieve 2030 interim facilitated
emissions reduction in our highest
emitting sector:
• -27% in oil and gas (absolute) from
a 2021 baseline
2021–
2030
In 2024, facilitated emissions increased from prior
years. Facilitations are highly cyclical, due to interest
rates and the global price of oil. During 2024, this
cyclicality has continued with a return to market of
many Oil and Gas counterparties, which has seen the
facilitated emissions increase.
Read more on our progress towards our interim
net zero targets on page 97 to 107
1 Refer to the Group’s ‘Net Zero Methodological White Paper – The journey continues’ via sc.com/sustainabilitylibrary and our Position Statements available
atsc.com/positionstatements.
Annual Report 2025 | Standard Chartered 455
Supplementary information
3. Enhance and deepen leadership within the sustainability ecosystem
Pillar Key performance indicators Period Status 2025 progress update
Market
integrity,
trust,
conduct and
compliance
Partnering to lead the fight against
financialcrime:
• Demonstrate leadership in the fight
against financial crime. Contribute to
improving confidence in the financial
system through our engagement with
international, regional and local industry
bodies and standard setters
• Engage in outreach programmes and
public-private partnerships to raise
awareness on financial crime risks
toprotect our clients and communities,
develop and share intelligence relating
tofinancial crime
Ongoing During 2025, the Group’s continuous
commitment to leading the fight
againstfinancial crime was demonstrated
through strong industry and regulatory
collaboration. The Group continued positive
engagement with international and
regional standard-setters, such as the
Financial Action Task Force and Wolfsberg
Group. Across our geographical footprint,
we work in partnership with regulators and
industry associations to inform and reform
financial crime legislation and regulation.
The Group promotes effective financial
crime compliance and risk identification
through participation at financial crime
conferences as speakers, panelists and
subject matter experts. We engage with
our clients and our communities, ensuring
they are educated on key financial crime
risks that impact lives and undermine
governance and security. Additionally,
public-private partnerships remain a key
focus of the Group by evolving existing
partnerships and providing support to
countries and bodies seeking to establish
new information-sharing arrangements.
Innovation
Hubs
Execution of at least 12 transactions by 2027
that are aligned with Standard Chartered’s
sustainability themed Innovation Hubs
2025–
2027
Our five thematic Innovation Hubs –
Adaptation Finance, Blended Finance
Programmes, Carbon Markets & Finance,
Nature Finance and Circular Economy
– focus on emerging sustainability themes
that are nascent but ripe for scale. The
Hubs drive innovation in the market across
sustainability. We executed on seven novel
transactions aligned to the themes of the
Hubs in 2025.
Read more about the work conducted
by the Hubs on pages 78 to 82
Supplementary sustainability information
Sustainability Aspirations
Standard Chartered | Annual Report 2025456
4. Drive social impact with our clients and communities
Pillar Key performance indicators Period Status 2025 progress update
People We aspire to have 35% representation
1
ofwomen at a global senior level
2
by end
of2025
2016–
2025
Women leadership representation at the
end of 2025 was 33.0 per cent. We continue
to take steps towards advancing gender
equality. The current gap will be addressed
as we continue to strengthen the senior
leadership talent pipeline through our
people processes and development
initiatives – including targeted deployment
and recruitment campaigns (where
permitted by local law).
Communities Invest 0.75% of prior year operating profit
(PYOP) in our communities
Ongoing Achieved 1.3 per cent PYOP, refer to pages
114 to 115 for additional details.
Enable and support a total of 250,000 jobs
by2030
3
through the following breakdown:
• 125,000 decent jobs
4
accessed
byyouthparticipants
• 125,000 direct jobs
5
enabled by supported
microbusinesses
2019–
2030
In 2025, Standard Chartered Foundation
completed a review of its headline
sustainability aspiration targets. The target
has now been adjusted to 250,000 jobs
enabled and supported between 2019
and2030. Standard Chartered Foundation
programmes
6
enabled and supported
16,310 jobs in 2025, bringing the total jobs
enabled so far to 106,570 since 2019. We
remain on track for overall target in 2030.
1 Subject to local legal requirements.
2 Senior level refers to roles that are at least at the level of Executive Director (Band 4) and Managing Director (Band 3) as of 31 December of each reporting year.
3 This target has been revised upwards from 140,000 to 250,000 jobs enabled by 2030, due to (1) a revision of the employability KPI to account for under-served male
participants and (2) moving the baseline from 2024 to 2019 to show progress since the start of programming.
4 Decent jobs comprises formal employment and self-employment. ‘Decent’ aligns with the International Labour Organization (ILO) definition, but in recognition
ofthe challenges in many markets to satisfy every criteria for ‘decent’, our programmes count those participants who have met minimum wage plus at least two
additional ILO criteria.
5 Direct jobs comprise paid employment opportunities (direct employees, active associates, contractors, support/gig workers, and the entrepreneurs themselves)
directly created by the supported microbusinesses. These may be part-time or full-time, with each job accounted for as a single unit. This KPI is based on actual
data collated from project alumni, estimates based on empirical research, and ex-post project evaluations.
6 The Standard Chartered Foundation portfolio comprises directly funded programmes and associated programmes that are aligned with the Foundation’s strategy
but, for regulatory reasons, are funded locally by Standard Chartered entities.
Concluded in the year Ongoing aspirations
Achieved
On track
Not achieved
Not on track
Annual Report 2025 | Standard Chartered 457
Supplementary information
In line with our ‘comply or explain’ obligation under the UK Financial Conduct Authority’s (FCA) UK Listing Rule 6.6.6R (8),
wecanconfirm that we have made disclosures consistent with the Taskforce on Climate-related Financial Disclosures
(TCFD)recommendations and recommended disclosures. The following table references these disclosures, along with
theclimate-related information required under Part D of the Environmental, Social and Governance Reporting Code
(AppendixC2to The Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited) and sections
414CAand 414CB of the UK Companies Act 2006.
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Governance a The Board’s oversight
of climate-related
risks and
opportunities
Companies Act 2006
Section 414CB(2A)
(a)
19(a)(i) how the body(s) or individual(s) determines whether
appropriate skills and competencies are available
orwill be developed to oversee strategies designed
torespond to climate-related risks and opportunities
153-154, 288
19(a)(ii) how and how often the body(s) or individual(s)
isinformed about climate-related risks
andopportunities
122-127
19(a)(iii) how the body(s) or individual(s) takes into account
climate-related risks and opportunities when
overseeing the issuer’s strategy, its decisions on major
transactions, and its risk management processes
andrelated policies, including whether the body(s)
orindividual(s) has considered trade-offs associated
with those risks and opportunities
122-127
19(a)(iv) how the body(s) or individual(s) oversees the setting
of, and monitors progress towards, targets related
toclimate-related risks and opportunities, including
whether and how related performance metrics are
included in remuneration policies
122-128
178,187
b Management’s role
in assessing and
managing climate-
related risks and
opportunities
Companies Act 2006
Section 414CB(2A)
(a)
19(a)(i) how the body(s) or individual(s) determines whether
appropriate skills and competencies are available
orwill be developed to oversee strategies designed
torespond to climate-related risks and opportunities
153-154, 288
19(a)(ii) how and how often the body(s) or individual(s)
isinformed about climate-related risks
andopportunities
122-127
19(b)(i) whether the role is delegated to a specific
management-level position or management-level
committee and how oversight is exercised over that
position or committee
122-127
19(b)(ii) whether management uses controls and procedures
to support the oversight of climate-related risks
andopportunities and, if so, how these controls
andprocedures are integrated with other
internalfunctions
122-127, 292
Strategy a Climate-related risks
and opportunities
the Group has
identified over the
short, medium and
long term
Companies Act 2006
Section 414CB(2A)
(d)
20(a) describe climate-related risks and opportunities that
could reasonably be expected to affect the issuer’s
cash flows, its access to finance or cost of capital
overthe short, medium or long term
107-110
287-302
20(b) explain, for each climate-related risk the issuer has
identified, whether the issuer considers the risk to be
aclimate-related physical risk or climate-related
transition risk
109-110
20(c) specify, for each climate-related risk and opportunity
the issuer has identified, over which time horizons
– short, medium or long term – the effects of each
climate-related risk and opportunity could reasonably
be expected to occur
109-110
Supplementary sustainability information
Climate reporting index
1 Climate-related financial disclosure regulations requirements under the UK Companies Act 2026, paragraph 414CB(2A), are mapped under the equivalent
TCFDrecommended disclosures.
Standard Chartered | Annual Report 2025458
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Strategy 20(d) explain how the issuer defines ‘short term’, ‘medium
term’ and ‘long term’ and how these definitions are
linked to the planning horizons used by the issuer
forstrategic decision-making
108
24(a) how climate-related risks and opportunities have
affected its financial position, financial performance
and cash flows for the reporting period
109-110
332-333
24(b) the climate-related risks and opportunities identified
in paragraph 24(a) for which there is a significant
riskof a material adjustment within the next
annualreporting period to the carrying amounts
ofassetsand liabilities reported in the related
financialstatements
109-110
332-333
25(a) how the issuer expects its financial position to change
over the short, medium and long term, given its
strategy to manage climate-related risks and
opportunities, taking into consideration
109-110
300-304
332-333
25(a)(i) its investment and disposal plans 109-110
300-304
332-333
25(a)(ii) its planned sources of funding to implement
itsstrategy
109-110
300-304
332-333
25(b) how the issuer expects its financial performance and
cash flows to change over the short, medium and long
term, given its strategy to manage climate-related
risks and opportunities
109-110
300-304
332-333
b Impact of climate-
related risks and
opportunities on the
Group’s businesses,
strategy and
financial planning
Companies Act 2006
Section 414CB(2A)
(e)
20(a) describe climate-related risks and opportunities that
could reasonably be expected to affect the issuer’s
cash flows, its access to finance or cost of capital over
the short, medium or long term
107-110
287-302
21(a) a description of the current and anticipated effects
ofclimate-related risks and opportunities on the
issuer’s business model and value chain
83-88
90-91
110
298-302
21(b) a description of where in the issuer’s business
modeland value chain climate-related risks and
opportunities are concentrated (for example,
geographical areas, facilities and types of assets)
83-88
90-110
287-302
22 An issuer shall disclose information that enables
anunderstanding of the effects of climate-related
risks and opportunities on its strategy and
decision-making
83-88
109-110
298-302
22(a) information about how the issuer has responded to,
and plans to respond to, climate-related risks and
opportunities in its strategy and decision-making,
including how the issuer plans to achieve any
climate-related targets it has set and any targets
itisrequired to meet by law or regulation
83-88
90-107, 110
22(a)(i) current and anticipated changes to the issuer’s
business model, including its resource allocation,
toaddress climate-related risks and opportunities
83-88
90-107, 110
22(a)(ii) current and anticipated adaptation and mitigation
efforts (whether direct or indirect)
83-88
90-107, 110
Annual Report 2025 | Standard Chartered 459
Supplementary information
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Strategy 22(a)(iii) any climate-related transition plan the issuer has
(including information about key assumptions used
indeveloping its transition plan, and dependencies
onwhich the issuer’s transition plan relies), or an
appropriate negative statement where the issuer
does not have a climate-related transition plan
90-91
22(b) information about how the issuer is resourcing, and
plans to resource, the activities disclosed in
accordance with paragraph 22(a)
77, 83-88
90-95, 98-106
23 an issuer shall disclose information about the progress
of plans disclosed in previous reporting periods in
accordance with paragraph 22(a)
83-88
90-107
24(a) how climate-related risks and opportunities have
affected its financial position, financial performance
and cash flows for the reporting period
109-110
332-333
24(b) the climate-related risks and opportunities identified
in paragraph 24(a) for which there is a significant
riskof a material adjustment within the next
annualreporting period to the carrying amounts
ofassetsand liabilities reported in the related
financialstatements
109-110
332-333
25(a) how the issuer expects its financial position to
changeover the short, medium and long term, given
its strategy to manage climate-related risks and
opportunities, taking into consideration
109-110
298-302
332-333
25(a)(i) its investment and disposal plans 109-110
298-302
332-333
25(a)(ii) its planned sources of funding to implement
itsstrategy
109-110
298-302
332-333
25(b) how the issuer expects its financial performance and
cash flows to change over the short, medium and long
term, given its strategy to manage climate-related
risks and opportunities
109-110
298-302
332-333
c Resilience of the
Group’s strategy,
taking into
consideration
different climate-
related scenarios
including a two
degrees Celsius or
lower scenario
Companies Act 2006
Section 414CB(2A) (f)
24(a) how climate-related risks and opportunities have
affected its financial position, financial performance
and cash flows for the reporting period
109-110
332-333
24(b) the climate-related risks and opportunities identified
in paragraph 24(a) for which there is a significant
riskof a material adjustment within the next
annualreporting period to the carrying amounts
ofassets and liabilities reported in the related
financial statements
109-110
332-333
25(a) how the issuer expects its financial position to
changeover the short, medium and long term, given
its strategy to manage climate-related risks and
opportunities, taking into consideration
109-110
298-302
332-333
25(a)(i) its investment and disposal plans 109-110
298-302
332-333
25(a)(ii) its planned sources of funding to implement
itsstrategy
109-110
298-302
332-333
Supplementary sustainability information
Climate reporting index
Standard Chartered | Annual Report 2025460
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Strategy 25(b) how the issuer expects its financial performance and
cash flows to change over the short, medium and long
term, given its strategy to manage climate-related
risks and opportunities
109-110
298-302
332-333
26(a) the issuer’s assessment of its climate resilience as
atthe reporting date, which shall enable an
understanding of
298-302
26(a)(i) the implications, if any, of the issuer’s assessment for
its strategy and business model, including how the
issuer would need to respond to the effects identified
in the climate-related scenario analysis
90
109-110
298-302
26(a)(ii) the significant areas of uncertainty considered
intheissuer’s assessment of its climate resilience
298-302
26(a)(iii) the issuer’s capacity to adjust, or adapt its strategy
and business model to climate change over the short,
medium or long term
83-88
90-110
298-302
26(b)(i)(1) which climate-related scenarios the issuer used forthe
analysis and the sources of such scenarios
298-302
26(b)(i)(2) whether the analysis included a diverse range
ofclimate-related scenarios
298-302
26(b)(i)(3) whether the climate-related scenarios used for
theanalysis are associated with climate-related
transition risks or climate-related physical risks
298-302
26(b)(i)(4) whether the issuer used, among its scenarios,
aclimate-related scenario aligned with the latest
international agreement on climate change
298-302
26(b)(i)(5) why the issuer decided that its chosen climate-related
scenarios are relevant to assessing its resilience
toclimate-related changes, developments
oruncertainties
298-302
26(b)(i)(6) time horizons the issuer used in the analysis 298-302
26(b)(i)(7) what scope of operations the issuer used in the
analysis (for example, the operation, locations
andbusiness units used in the analysis)
298-302
26(b)(ii) the key assumptions the issuer made in the analysis 298-302
26(b)(iii) the reporting period in which the climate-related
scenario analysis was carried out
298-302
27(a)(ii) whether and how the issuer uses climate-related
scenario analysis to inform its identification of
climate-related risks
298-302
Risk
management
a Our processes for
identifying and
assessing climate-
related risks
Companies Act 2006
Section 414CB(2A)
(b)
27(a)(i) the inputs and parameters the issuer uses
(forexample, information about data sources and
thescope of operations covered in the processes)
287-302
27(a)(iii) how the issuer assesses the nature, likelihood and
magnitude of the effects of those risks (for example,
whether the issuer considers qualitative factors,
quantitative thresholds or other criteria)
109-110
287-302
27(b) the processes the issuer uses to identify, assess,
prioritise and monitor climate-related opportunities
(including information about whether and how the
issuer uses climate-related scenario analysis to inform
its identification of climate-related opportunities)
109-110
287-302
Annual Report 2025 | Standard Chartered 461
Supplementary information
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Risk
management
b Our processes for
managing climate-
related risks
Companies Act 2006
Section 414CB(2A)
(b)
27(a)(iv) whether and how the issuer prioritises climate-related
risks relative to other types of risks
287-302
27(a)(v) how the issuer monitors climate-related risks 116
287-302
27(a)(vi) whether and how the issuer has changed the
processes it uses compared with the previous
reporting period
287-302
27(b) the processes the issuer uses to identify, assess,
prioritise and monitor climate-related opportunities
(including information about whether and how the
issuer uses climate-related scenario analysis to inform
its identification of climate-related opportunities)
109-110
287-302
c How the Group’s
processes for
identifying, assessing
and managing
climate-related risks
are integrated into
the Group’s overall
risk management
Companies Act 2006
Section 414CB(2A) (c)
27(c) the extent to which, and how, the processes for
identifying, assessing, prioritising and monitoring
climate-related risks and opportunities are
integratedinto and inform the issuer’s overall risk
management process
116
287-302
Metrics and
targets
a The metrics used by
the Group to assess
climate-related risks
and opportunities in
line with our strategy
and risk
management
processes
Companies Act 2006
Section 414CB(2A)
(h)
30 An issuer shall disclose the amount and percentage
ofassets or business activities vulnerable to
climate-related transition risks
235
260-262
31 An issuer shall disclose the amount and percentage
ofassets or business activities vulnerable to
climate-related physical risks
Explained
– refer to
page 71 for
rationale
32 An issuer shall disclose the amount and percentage
ofassets or business activities aligned with
climate-related opportunities
85-88
33 An issuer shall disclose the amount of capital
expenditure, financing or investment deployed
towards climate-related risks and opportunities
85-88
93-99
34 An issuer shall disclose:
a an explanation of whether and how the issuer
isapplying a carbon price in decision making
(forexample, investment decisions, transfer pricing,
and scenario analysis); and
b the price of each metric tonne of greenhouse gas
emissions the issuer uses to assess the costs of
itsgreenhouse gas emissions; or an appropriate
negative statement that the issuer does not apply
a carbon price in decision-making
72
298-302
35 An issuer shall disclose whether and how
climate-related considerations are factored into
remuneration policy, or an appropriate negative
statement. Thismay form part of the disclosure
underparagraph19(a)(iv)
128, 178, 187
Supplementary sustainability information
Climate reporting index
Standard Chartered | Annual Report 2025462
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Metrics and
targets
36 An issuer is encouraged to disclose industry-based
metrics that are associated with one or more
particular business models, activities or other common
features that characterise participation in an industry.
In determining the industry-based metrics that the
issuer discloses, an issuer is encouraged to refer to
andconsider the applicability of the industry-based
metrics associated with disclosure topics described in
the IFRS S2 Industry-based Guidance on implementing
Climate-related Disclosures and other industry-based
disclosure requirements prescribed under other
international ESG reporting frameworks
83-88
92-106
289-302
451-452
b Scope 1, Scope 2, and
Scope 3 greenhouse
gas (GHG) emissions,
and the related risks
Companies Act 2006
Section 414CB(2A)
(h)
28 An issuer shall disclose its absolute gross greenhouse
gas emissions generated during the reporting period
1
,
expressed as metric tons of CO
2
equivalent, classifiedas:
a Scope 1 greenhouse gas emissions;
b Scope 2 greenhouse gas emissions; and
c Scope 3 greenhouse gas emission
2,3
Explain:
1 We are not able to present all disclosures for the same period
asthe financial statements, which we have explained – refer to
pages 71 and 74 for rationale.
2 Scope 3 financed emissions data does not yet include emissions
related to undrawn loan commitments – refer to page 71
forrationale.
3 Scope 3 financed emissions are inclusive of emission scopes that
we deem to be material to each sector. We do not include all
Scope 3 emissions for each reported sector.
92
452
99-106
29(a) measure its greenhouse gas emissions in accordance
with the Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (2004) unless
required by a jurisdictional authority or another
exchange on which the issuer is listed to use a different
method for measuring greenhouse gasemissions
92, 97
29(b) disclose the approach it uses to measure
itsgreenhouse gas emissions including
92-97, 99
29(b)(i) the measurement approach, inputs and
assumptionsthe issuer uses to measure its
greenhouse gas emissions
92, 93, 96
97, 99
29(b)(ii) the reason why the issuer has chosen the
measurement approach, inputs and assumptions
ituses to measure its greenhouse gas emission
92, 93, 96
97, 99
29(b)(iii) any changes the issuer made to the measurement
approach, inputs and assumptions during the
reporting period and the reasons for those changes
92, 93, 96
97, 99
29(c) for Scope 2 greenhouse gas emissions disclosed
inaccordance with paragraph 28(b), disclose its
location-based Scope 2 greenhouse gas emissions,
and provide information about any contractual
instruments that is necessary to enable an
understanding of the issuer’s Scope 2 greenhouse
gasemissions
93-94
209
451-452
29(d) for Scope 3 greenhouse gas emissions disclosed
inaccordance with paragraph 28(c), disclose the
categories included within the issuer’s measure
ofScope 3 greenhouse gas emissions, in accordance
with the Scope 3 categories described in the
Greenhouse Gas Protocol Corporate Value Chain
(Scope 3) Accounting and Reporting Standard (2011)
92
Some
categories are
immaterial
– refer to
page 72 for
rationale
Annual Report 2025 | Standard Chartered 463
Supplementary information
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Metrics and
targets
c The targets used by
the Group to
manage climate-
related risks and
opportunities and our
performance against
targets
Companies Act
Section 414b(2A) (g)
22(a)(iv) how the issuer plans to achieve any climate-related
targets (including any greenhouse gas emissions
targets (if any)), described in accordance with
paragraphs 37 to 40
83-88
90-107
37 An issuer shall disclose (a) the qualitative and
quantitative climate-related targets the issuer has
setto monitor progress towards achieving its
strategic goals; and (b) any targets the issuer is
required to meet by law or regulation, including any
greenhouse gas emissions targets. For each target,
the issuer shalldisclose
75-77
83-85
92-94
97-99, 106
454-457
37(a) the metric used to set the target 83-85
92-99, 106
454-457
37(b) the objective of the target (for example, mitigation,
adaptation or conformance with science-based
initiatives)
83-85
92
97, 106
37(c) the part of the issuer to which the target applies
(forexample, whether the target applies to the issuer
in its entirety or only a part of the issuer, such as
aspecific business unit or geographic region)
83-85
92-99, 106
454-457
37(d) the period over which the target applies 83-85
92-99, 106
454-457
37(e) the base period from which progress is measured 83-85
92-99, 106
454-457
37(f) milestones or interim targets (if any) 98-107
37(g) if the target is quantitative, whether the target
isanabsolute target or an intensity target
83-85, 93,
99, 106
37(h) how the latest international agreement on climate
change, including jurisdictional commitments that
arise from that agreement, has informed the target
97, 106
38(a) whether the target and the methodology for setting
the target has been validated by a third party
97
38(b) the issuer’s processes for reviewing the target 90-107
122-127
38(c) the metrics used to monitor progress towards
reaching the target; and
83-85
92-107
38(d) any revisions to the target and an explanation for
those revisions
98
39 An issuer shall disclose information about its
performance against each climate-related target
andan analysis of trends or changes in the
issuer’sperformance
83-85
92-107
40(a) which greenhouse gases are covered by the target Immaterial
– refer to
page 72 for
rationale
40(b) whether Scope 1, Scope 2 or Scope 3 greenhouse gas
emissions are covered by the target
76-77
90-106
Supplementary sustainability information
Climate reporting index
Standard Chartered | Annual Report 2025464
TCFD pillar
TCFD recommended
disclosure
1
Hong Kong Listing Rules
Appendix C2 Part D requirement Page
Metrics and
targets
40(c) whether the target is a gross greenhouse gas
emissions target or a net greenhouse gas emissions
target. If the issuer discloses a net greenhouse gas
emissions target, the issuer is also required to
separately disclose its associated gross greenhouse
gas emissions targe
93-95
97
40(d) whether the target was derived using a sectoral
decarbonisation approach
100-105
40(e) the issuer’s planned use of carbon credits to offset
greenhouse gas emissions to achieve any net
greenhouse gas emissions target. In explaining its
planned use of carbon credits, the issuer shall disclose
94-95
97
40(e)(i) the extent to which, and how, achieving any net
greenhouse gas emissions target relies on the use
ofcarbon credits
94-95
97
40(e)(ii) which third-party scheme(s) will verify or certify the
carbon credits
94-95
40(e)(iii) the type of carbon credit, including whether the
underlying offset will be nature-based or based
ontechnological carbon removals, and whether
theunderlying offset is achieved through carbon
reduction or removal
94-95
40(e)(iv) any other factors necessary to enable an
understanding of the credibility and integrity of the
carbon credits the issuer plans to use (for example,
assumptions regarding the permanence of the
carbon offset)
94-95
41 In preparing disclosures to meet the requirements in
paragraphs 21 to 26 and 37 to 38, an issuer shall refer
to and consider the applicability of cross-industry
metrics (see paragraphs 28 to 35) and (ii)
industry-based metrics (see paragraph 36)
289-302
Annual Report 2025 | Standard Chartered 465
Supplementary information
Dividend and interest payment dates
Ordinary shares Final dividend
Results and dividend announced 24 February 2026
Ex-dividend date
18 (HK) 19 (UK)
March 2026
Record date for dividend 20 March 2026
Last date to amend currency election instructions for cash dividend* 16 April 2026
Dividend payment date 14 May 2026
* In either US dollars, pound sterling or Hong Kong dollars.
Preference shares 1st half yearly dividend 2nd half yearly dividend
73 ∕8 per cent non-cumulative irredeemable preference shares of £1 1 April 2026 1 October 2026
81 ∕4 per cent non-cumulative irredeemable preference shares of £1 each 1 April 2026 1 October 2026
6.409 per cent non-cumulative redeemable preference shares of $5 each
30 January and
30 April 2026
30 July and
30 October 2026
7.014 per cent non-cumulative redeemable preference shares of $5 each 30 January 2026 30 July 2026
ShareCare
ShareCare is available to shareholders on the Company’s UK
register who have a UK address and bank account. It allows
you to hold your Standard Chartered PLC shares in a nominee
account. Your shares will be held in electronic form, so you will
no longer have to worry about keeping your share certificates
safe. If you join ShareCare, you will still be invited to attend
the Company’s AGM and you will receive any dividend at the
same time as everyone else. ShareCare is free to join and
there are no annual fees to pay.
If you would like to receive more information, please visit
sc.com/sharecare or contact the shareholder helpline
on0370 702 0138
Donating shares to ShareGift
Shareholders who have a small number of shares often find
ituneconomical to sell them. An alternative is to consider
donating them to the charity ShareGift (registered charity
1052686), which collects donations of unwanted shares until
there are enough to sell and uses the proceeds to support UK
charities. There is no implication for capital gains tax (no gain
or loss) when you donate shares to charity, and UK taxpayers
may be able to claim income tax relief on the value of their
donation.
Further information can be obtained from the Company’s
registrars or from ShareGift on 020 7930 3737 or from
www.sharegift.org
Bankers’ Automated Clearing System
Dividends can be paid straight into your bank or building
society account.
Please register online at investorcentre.co.uk or contact
ourregistrars for a dividend mandate form
Shareholder information
Annual General Meeting (AGM)
The AGM will be held on Thursday, 7 May 2026 at 11.00am
UKtime (6.00pm Hong Kong time). Further details regarding
the format, location and business to be transacted at the
meeting will be disclosed within the 2026 Notice of AGM.
Details of voting at the Company’s AGM and of proxy votes
cast can be found on the Company’s website at sc.com/agm
Interim results
The interim results will be announced to the London Stock
Exchange and the Stock Exchange of Hong Kong Limited
and put on the Company’s website.
Country-by-country reporting
In accordance with the requirements of the Capital
Requirements (country-by-country reporting) Regulations
2013, the Group will publish additional country-by-country
information in respect of the year ended 31 December 2025,
on or before 31 December 2026. We have also published our
UK tax strategy.
Read our latest country-by-country report
sc.com/country-by-country-disclosure
Pillar 3 reporting
In accordance with the Pillar 3 disclosure requirements,
theGroup has published the Pillar 3 disclosures in respect
ofthe year ended 31 December 2025.
Read our Pillar 3 disclosures sc.com/financial-results
Standard Chartered | Annual Report 2025466
Registrars and shareholder enquiries
If you have any enquiries relating to your shareholding
andyou hold your shares on the UK register, please contact
our registrar at investorcentre.co.uk. Alternatively, please
contact Computershare Investor Services PLC, The Pavilions,
Bridgwater Road, Bristol, BS99 6ZZ or call the shareholder
helpline number on 0370 702 0138. If you hold your shares
onthe Hong Kong branch register and you have enquiries,
please contact Computershare Hong Kong Investor Services
Limited, 17M Floor, Hopewell Centre, 183 Queen’s Road East,
Wan Chai, Hong Kong.
You can check your shareholding at
www.computershare.com/hk/investors
Substantial shareholders
The Company and its shareholders have been granted
partial exemption from the disclosure requirements under
Part XV of the Securities and Futures Ordinance (SFO).
Asaresult of this exemption, shareholders, directors and
chiefexecutives no longer have an obligation under Part XV
of the SFO (other than Divisions 5, 11 and 12 thereof) to notify
the Company of substantial shareholding interests, and
theCompany is no longer required to maintain a register
ofinterests of substantial shareholders under section 336
ofthe SFO, nor a register of directors’ and chief executives’
interests under section 352 of the SFO. The Company is,
however, required to file with The Stock Exchange of Hong
Kong Limited any disclosure of interests made in the UK.
Taxation
The Company has a Group-wide policy on tax strategy
andgovernance, which details that we seek to apply our
approach to tax in all jurisdictions in which we operate and
are committed to paying all taxes legally due. This policy
isapproved by the Board annually and is available on our
website sc.com/regulatory-disclosures.
No tax is currently withheld from payments of dividends
byStandard Chartered PLC. Shareholders and prospective
purchasers should consult an appropriate independent
professional adviser regarding the tax consequences of an
investment in shares in light of their particular circumstances,
including the effect of any national, state or local laws.
Chinese translation
If you would like a Chinese language version of the 2025
Annual Report, please contact Computershare Hong Kong
Investor Services Limited, 17M Floor, Hopewell Centre, 183
Queen’s Road East, Wan Chai, Hong Kong.
二〇二五年年報之中文譯本可向香港中央證券登記有限公司索取,
地址：香港灣仔皇后大道東183號合和中心17M樓。
Shareholders on the Hong Kong branch register who
haveasked to receive corporate communications in either
Chinese or English can change this election by contacting
Computershare. If there is any inconsistency between the
English version of this document and any translation of the
English version, the English version shall prevail.
Electronic communications
If you hold your shares on the UK register and in future you
would like to receive the Annual Report electronically rather than
by post, please register online at: www.investorcentre.co.uk.
Click on ‘register now’ and follow the instructions. You will
need to have your Shareholder or ShareCare reference
number to hand. You can find this on your share certificate
orShareCare statement. Once you have registered and
confirmed your email communication preference, you will
receive future notifications via email enabling you to submit
your proxy vote online. In addition, as a member of Investor
Centre, you will be able to manage your shareholding online
and change your bank mandate or address information.
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.
Annual Report 2025 | Standard Chartered 467
Supplementary information
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
AnnualReport 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 Annual Report 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.
Non-IFRS performance measures and
alternativeperformance measures
The Group financial statements have been prepared in
accordance with UK-adopted international accounting
standards and International Financial Reporting Standards
(IFRS) as adopted by the European Union. Standard Chartered
PLC’s financial statements have been prepared in accordance
with UK-adopted international accounting standards (IAS)
as applied in conformity with section 408 of the Companies
Act 2006. This document may contain financial measures
and ratios not specifically defined under IFRS or IAS and/or
alternative performance measures as defined in the European
Securities and Market Authority guidelines. Such measures
may exclude certain items that management believes are
notrepresentative of the underlying performance of the
business and which distort period-on-period comparison.
These measures are not a substitute for IAS or IFRS measures
and are based on a number of assumptions that are subject
to uncertainties and change. Please refer to this Annual
Report and the financial statements of the Group for further
information, including reconciliations between the underlying
and reported measures.
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.
Basis of preparation and caution regarding
datalimitations
This section is specifically relevant to, among others,
thesustainability and climate models, calculations and
disclosures throughout this report. The information contained
in this document has been prepared on the following basis:
i disclosures in the Strategic report, Financial review,
Sustainability review, Directors’ report, Risk review and
Capital review and Supplementary information are
unaudited unless otherwise stated;
ii all information, positions and statements set out in
thisdocument are subject to change without notice;
iii the information included in this document does not
constitute any investment, accounting, legal, regulatory
ortax advice or an invitation or recommendation to enter
into any transaction;
iv the information included in this document may have been
prepared using models, methodologies and data that
aresubject to certain limitations. These limitations include:
thelimited availability of reliable data, data gaps and
thenascent nature of the methodologies and technologies
underpinning this data; the limited standardisation
ofdata (given, among other things, limited international
coordination on data and methodology standards); and
future uncertainty (due, among other things, to changing
projections relating to technological development and
global and regional laws, regulations and policies, and
thecurrent inability to make use of strong historical data);
v models, external data and methodologies used in
information included in this document are or could be
subject to adjustment which is beyond our control;
vi any opinions and estimates should be regarded as
indicative, preliminary and for illustrative purposes only.
Expected and actual outcomes may differ from those set
out in this document (as explained in the ‘Forward-looking
statements’ section above);
Shareholder information
Standard Chartered | Annual Report 2025468
vii some of the related information appearing in this
document may have been obtained from public and
other sources and, while the Group believes such
information tobe reliable, it has not been independently
verified bytheGroup and no representation or warranty
ismade by the Group as to its quality, completeness,
accuracy, fitness for a particular purpose or
noninfringement ofsuchinformation;
viii for the purposes of the information included in this
document, a number of key judgements and assumptions
have been made. It is possible that the assumptions drawn,
and the judgement exercised may subsequently turn out
to be inaccurate. The judgements and data presented
inthis document are not a substitute for judgements
andanalysis made independently by the reader;
ix any opinions or views of third parties expressed in
thisdocument are those of the third parties identified,
and notof the Group, its affiliates, directors, officers,
employees or agents. By incorporating or referring
toopinions and views of third parties, the Group is not, in
any way, endorsing or supporting such opinions or views;
x while the Group bears primary responsibility for the
information included in this document, it does not accept
responsibility for the external input provided by any third
parties for the purposes of developing the information
included in this document;
xi the data contained in this document reflects available
information and estimates at the relevant time;
xii where the Group has used any methodology or tools
developed by a third party, the application of the
methodology or tools (or consequences of its application)
shall not be interpreted as conflicting with any legal
orcontractual obligations and such legal or contractual
obligations shall take precedence over the application
ofthe methodology or tools;
xiii where the Group has used any underlying data provided
or sourced by a third party, the use of the data shall not
beinterpreted as conflicting with any legal or contractual
obligations and such legal or contractual obligations
shalltake precedence over the use of the data;
xiv this Important Notice is not limited in applicability to
thosesections of the document where limitations to data,
metrics and methodologies are identified and where this
Important Notice is referenced. This Important Notice
applies to the whole document;
xv further development of reporting, standards or other
principles could impact the information included in this
document or any metrics, data and targets included
inthis document (it being noted that ESG reporting and
standards are subject to rapid change and development);
and
xvi while all reasonable care has been taken in preparing
theinformation included in this document, neither the
Group nor any of its affiliates, directors, officers, employees
or agents make any representation or warranty as to its
quality, accuracy or completeness, and they accept no
responsibility or liability for the contents of this information,
including any errors of fact, omission or opinion expressed.
You are advised to exercise your own independent
judgement (with the advice of your professional advisers
asnecessary) with respect to the risks and consequences
ofany matter contained in this document.
The Group, its affiliates, directors, officers, employees
oragents expressly disclaim any liability and responsibility
forany decisions or actions that you may take and for any
damage or losses you may suffer from your use of or reliance
on the information contained in this document.
Copyright in all materials, text, articles and information
contained in this document (other than third-party materials,
text, articles and information) is the property of, and may
only be reproduced with permission of an authorised
signatory of, the Group.
Copyright in materials, text, articles and information created
by third parties and the rights under copyright of such parties
are hereby acknowledged. Copyright in all other materials
not belonging to third parties and copyright in these materials
as a compilation vests and shall remain at all times copyright
of the Group and should not be reproduced or used except
for business purposes on behalf of the Group or save with
theexpress prior written consent of an authorised signatory
of the Group.
All rights reserved.
Annual Report 2025 | Standard Chartered 469
Supplementary information
Glossary
Additional Tier 1 capital (AT1)
Instruments other than Common
EquityTier 1 that meet the Capital
Requirements Regulation (as it forms
part of UK domestic law) criteria for
inclusion in Tier 1 capital.
Additional value adjustment
(AVA)
See Prudent valuation adjustment.
Advanced Internal Rating
Based (AIRB) approach
The approach is used under the Basel
framework to calculate credit risk
capital based on the Group’s own
estimates of prudential parameters.
Alternative performance
measures (APM)
A financial measure of historical
orfuture financial performance,
financial position, or cash flows, other
than a financial measure defined or
specified in the applicable financial
reporting framework.
Assets under management
(AUM)
Total market value of assets such
asdeposits, securities and funds held
by the Group on behalf of the clients.
Association of Southeast Asian
Nations (ASEAN)
A political and economic union of 10
Southeast Asian Countries. Includes the
Group’s operations in Brunei, Indonesia,
Malaysia, Philippines, Singapore,
Thailand and Vietnam.
Basel III
The global regulatory standards
oncapital adequacy and liquidity
developed by the Basel Committee
onBanking Supervision (BCBS)
inresponse to the financial crisis
of2007 to 2009. Itwas originally
issuedin December 2010 and finalised
in December 2017. The standards have
been in the process of being phased
into UK policy since 2022.
Basel Committee on Banking
Supervision (BCBS)
A forum on banking supervisory
matters which develops global
supervisory standards for the banking
industry. Its members are officials
from45 central banks or prudential
supervisors from 28 countries
andterritories.
Basic earnings per share (EPS)
Represents earnings divided by
thebasic weighted average number
ofshares.
Basis point (bps)
One hundredth of a per cent
(0.01percent).
Capital-lite income
Income derived from products with
lowrisk-weighted asset consumption
orproducts which are non-funding
innature.
Capital Requirements Directive
(CRD)
A capital adequacy legislative
packageadopted by the Prudential
Regulation Authority. CRD comprises
the Capital Requirements Directive and
the UK onshored Capital Requirements
Regulation (CRR). The package
implements the Basel III framework
together with transitional arrangements
for some of its requirements. CRD IV
came into force on 1 January 2014.
TheEU CRR II and CRD V amending
theexisting package came into force
inJune 2019 with most changes starting
to apply from 28 June 2021. Only those
parts of the EU CRR II that applied on
orbefore 31 December 2020, when the
UK was a member of the EU, have been
implemented. The PRA finalised the UK’s
version of the CRR II for implementation
on 1 January 2022.
Capital resources
Sum of Tier 1 and Tier 2 capital after
regulatory adjustments.
Cash-generating unit (CGU)
The smallest identifiable group of
assets that generates cash inflows
largely independent of the cash inflows
from other assets or groups of assets.
Cash shortfall
The difference between the cash
flows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.
Clawback
An amount an individual is required
topay back to the Group, which must
be returned to the Group under certain
circumstances.
Commercial real estate
Includes office buildings, industrial
property, medical centres, hotels, malls,
retail stores, shopping centres, farmland,
multi-family housing buildings,
warehouses, garages, and industrial
properties. Commercial real estate
loans are those backed by a package
of commercial real estate assets.
Common Equity Tier 1 capital
(CET1)
Consists of the common shares
issuedby the Group and related
sharepremium, retained earnings,
accumulated other comprehensive
income and other disclosed reserves,
eligible non-controlling interests
andregulatory adjustments required
inthecalculation of CET 1.
CET1 ratio/CET1 capital ratio
A measure of the Group’s CET1 capital
asa percentage of risk-weighted assets.
Contractual maturity
The final payment date of a loan
orother financial instrument, at which
point all the remaining outstanding
principal and interest is due to be paid.
Countercyclical capital buffer
(CCyB)
Part of a set of macroprudential
instruments, designed to help counter
procyclicality in the financial system.
CCyB as defined in the Basel III
standard provides for an additional
capital requirement of up to 2.5 per
cent of risk-weighted assets in a given
jurisdiction. The Bank of England’s
Financial Policy Committee has the
power to set the CCyB rate for the
UK.Each bank must calculate its
institution-specific CCyB rate, defined
as the weighted average of the CCyB
rates in effect across the jurisdictions
inwhich it has credit exposures.
Theinstitution-specific CCyB rate
isthen applied to a bank’s total
risk-weighted assets.
Climate Risk Assessment (CRA)
An internal assessment conducted on
in-scope corporate clients to assess our
client’s exposure to climate risks, across
Physical and Transition risks and their
ability to manage and mitigate these
risks. These climate considerations
areintegrated into credit risk analysis
and portfolio management.
Standard Chartered | Annual Report 2025470
Counterparty credit risk
The risk that a counterparty defaults
before satisfying its obligations under
aderivative, a securities financing
transaction or a similar contract.
Court
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.
Credit conversion factor (CCF)
An estimate of the amount the Group
expects a customer to have drawn
further on a facility limit at the point
ofdefault. This is either prescribed
bythe Capital Requirements Regulation
ormodelled by the Group.
Credit default swaps (CDS)
A credit derivative is an arrangement
where the credit risk of an asset
(thereference asset) is transferred from
the buyer to the seller of protection.
Acredit default swap is a contract
where the protection seller receives
premium or interest-related payments
in return for contracting to make
payments to the protection buyer upon
a defined credit event. Credit events
normally include bankruptcy, payment
default on a reference asset or assets,
or downgrades by a rating agency.
Capital Requirements
Regulation (CRR)
A regulation that aims to decrease the
likelihood that banks become insolvent.
Credit institutions
An institution whose business is to
receive deposits or other repayable
funds from the public and to grant
credits for its own account.
Credit risk mitigation
A process to mitigate potential
creditlosses from any given account,
customer or portfolio by using a range
of tools such as collateral, netting
agreements, credit insurance, credit
derivatives and guarantees.
Credible Transition Plan (CTP)
A credible climate transition plan is
atime-bound, action plan that clearly
outlines how a company will invest in
orpivot existing assets, operations,
andentire business model towards
atrajectory that aligns with the most
ambitious climate science.
Credit grade 12 (CG12)
An account which exhibits well
definedmajor weaknesses in areas
such as management, cash flow,
financial position, market conditions
and/or performance of the client
thatwould likely affect repayment on
existing terms. The client is experiencing
financial difficulties 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)
Credit grade 13 (CG13)
Any account which exhibits one or
more of the symptoms of unlikeliness to
pay and/or instances when an obligor
is more than 90 days past due is
classified as CG13.
Credit grade 14 (CG14)
Any account where the expected gross
cash flows are less than the net
outstanding exposure in the Likely
scenario is classified as CG14.
Credit valuation adjustments
(CVA)
An adjustment to the fair value
ofderivative contracts that reflects
thepossibility that the counterparty
may default, such that the Group
would not receive the full market
valueof the contracts.
Customer accounts
Money deposited by all individuals
andcompanies which are not credit
institutions including securities sold
under repurchase agreement (see
repo/reverse repo). Such funds are
recorded as liabilities in the Group’s
balance sheet under customer
accounts.
Days past due
One or more days that interest
and/orprincipal payments are
overduebased on the contractual
terms ofthetransaction.
Debit valuation adjustment
(DVA)
An adjustment to the fair value
ofderivative contracts that reflect
thepossibility that the Group may
default and not pay the full market
value ofcontracts.
Debt securities
Assets on the Group’s balance
sheetthat represent certificates
ofindebtedness of credit institutions,
public bodies or other undertakings,
excluding those issued by central banks.
Debt securities in issue
Transferable certificates of
indebtedness of the Group to the
bearer of the certificate. These are
liabilities of the Group and include
certificates of deposits.
Default
Financial assets in default, which
includes CG13 and CG14, are at least
90days past due in respect of principal
or interest and/or where the assets
areotherwise considered to be unlikely
to pay, including those that are
creditimpaired.
Deferred tax asset (DTA)
Income taxes recoverable in future
periods in respect of deductible
temporary differences between the
accounting and tax base of an asset or
liability that will result in tax deductible
amounts in future periods, the carry
forward of tax losses or the carry
forward of unused tax credits.
Deferred tax liability (DTL)
Income taxes payable in future periods
in respect of taxable temporary
differences between the accounting
and tax base of an asset or liability
thatwill result in taxable amounts
infuture periods.
Defined benefit obligation
The present value of expected future
payments required to settle the
obligations of a defined benefit
scheme resulting from employee
service.
Defined benefit scheme
Retirement benefit plans under which
amounts to be paid as retirement
benefits are determined by reference
toa formula usually based on
employees’ earnings and/or years
ofservice.
Annual Report 2025 | Standard Chartered 471
Supplementary information
Defined contribution scheme
A pension or other post-retirement
benefit scheme where the employer’s
obligation is limited to its contributions
to the fund.
Delinquency
A debt or other financial obligation
isina state of delinquency when
payments are overdue. Loans and
advances are delinquent when
consecutive payments are missed.
Alsoknown as arrears.
Deposits by banks
Deposits by banks comprise amounts
owed to other domestic or foreign
credit institutions by the Group including
securities sold under repo. Refer to
‘Repurchase agreement (repo) / reverse
repurchase agreement (reverse repo)’.
Diluted earnings per share
Represents earnings divided by the
weighted average number of shares
that would have been outstanding
assuming the conversion of all dilutive
potential ordinary shares.
Dividend per share
Represents the entitlement of each
shareholder of the profits of the
Company. Calculated in the lowest
unitof currency in which the shares
arequoted.
Early alert, purely (EA-PP)
An account that exhibits characteristics
which present credit concerns over
customer’s capacity to repay its debt
obligations, but where the problem
isexpected to be short-term, and
thedefault risk remains low.
Early alert non-purely
precautionary (EA-NPP)
Accounts that present material
creditconcerns which may result in a
default by the client if left unaddressed.
EA-PP accounts should be reviewed
onan ongoing basis and can be
re-categorised to NPP, where the
situation has further deteriorated and
cause material credit concerns over
customer’s debt servicing capability.
Account can be placed on EA-NPP
directly, without being placed as PP, if
the deterioration is rapid and material
and causes imminent credit concerns.
Effective tax rate
The tax on profit or losses on
ordinaryactivities as a percentage
ofprofit orloss on ordinary activities
beforetaxation.
Encumbered assets
On balance sheet assets pledged
orused as collateral in respect
ofcertain of the Group’s liabilities.
Eurozone
Represents the 19 EU countries that
have adopted the euro as their
common currency.
Expected credit loss (ECL)
Represents the present value
ofexpected cash shortfalls over
theresidual term of a financial asset,
undrawn commitment or financial
guarantee. This comprises ECL
generated by the models, management
judgements and individually assessed
credit impairment provisions.
Expected loss (EL)
The Group measure of anticipated
lossfor exposures captured under
aninternal ratings-based credit risk
approach for capital adequacy
calculations. It is measured as the
Group-modelled view of anticipated
loss based on probability of default,
loss given default and exposure at
default, with a one-year time horizon.
Exposures
Credit exposures represent the amount
lent to a customer including any
undrawn commitments.
Exposure at default (EAD)
The estimation of the extent to
whichthe Group may be exposed
toacustomer or counterparty in the
event of, and at the time of, that
counterparty’s default. At default,
thecustomer may not have drawn the
loan fully or may already have repaid
some of the principal, so that exposure
is typically less than the approved
loanlimit.
External Credit Assessment
Institution (ECAI)
External credit ratings are used
toassign risk-weights under the
standardised approach for sovereigns,
corporates and institutions. The external
ratings are from credit rating agencies
registered or certified in accordance
with the credit rating agencies
regulation or from a central bank
issuing credit ratings, which is exempt
from the application of this regulation.
Facilitated Emissions
Refers to the greenhouse gas emissions
that result from the facilitation of
financial transactions by financial
institutions.
Financed Emissions
Emissions attributed to a financial
institution when financing a client.
Financial Conduct Authority
(FCA)
The governing body that regulates
theconduct of financial firms and,
forcertain firms, prudential standards
in the UK. It has a strategic objective
toensure that the relevant markets
function well.
Forbearance
Takes place when a concession
ismade to the contractual terms
ofaloan in response to an obligor’s
financial difficulties. The Group
classifies such modified loans as
either‘Forborne – not impaired loans’
or‘Loans subject to forbearance –
impaired’. Once a loan is categorised
as either of these, it will remain in
oneof these two categories until the
loan matures or satisfies the ‘curing’
conditions described in Note 8 to the
financial statements.
Forborne – not impaired loans
Loans where the contractual terms
have been modified due to financial
difficulties of the borrower, but the
loanis not considered to be impaired.
See Forbearance.
Funded/unfunded exposures
Exposures where the notional
amountof the transaction is funded
orunfunded. Represents exposures
where a commitment to provide future
funding is made but funds have been
released/not released.
Glossary
Standard Chartered | Annual Report 2025472
Funding valuation adjustment
(FVA)
An adjustment to fair value in respect
of derivative contracts that reflects
thefunding costs that the market
participant would incorporate when
determining an exit price.
Funds Transfer Pricing (FTP)
FTP sets the funding rate for internal
pricing, representing the internal
marginal cost of funding of the Group
and is used to determine the transfer
pricing of the interest rate and liquidity
risks between businesses and Treasury.
G-SIB buffer/G-SII buffer
A CET1 capital buffer which results
fromdesignation as a G-SIB. The G-SIB
buffer is between 1 per cent and 3.5 per
cent, depending on the allocation to
one of five buckets based on the annual
scoring. In the UK, the G-SIB buffer is
implemented via the CRD as Global
Systemically Important Institutions
(G-SII) buffer requirement.
Global Systemically Important
Banks (G-SIBs)/Globally
Systemically Important
Institutions (G-SIIs)
Global banking financial institutions
whose size, complexity and systemic
interconnectedness mean that
theirdistress or failure would cause
significant disruption to the wider
financial system and economic activity.
The list of G-SIBs is assessed under
aframework established by the
FinancialStability Board and the Basel
Committee on Banking Supervision.
Inthe UK, the G-SIB framework is
implemented via the CRD and G-SIBs
are referred to as Global Systemically
Important Institutions (G-SIIs).
Green and Sustainable Product
Framework
Sets out qualifying themes and
activities that may be considered
eligible as ‘green’, ‘social’ or
‘sustainable’. Thishas been externally
reviewed byMorningstar Sustainalytics
and hasbeen informed by industry and
supervisory principles and standards
such as the ICMA Green Bond
Principlesand EU Taxonomy for
sustainable activities.
Gulf Cooperation Council
(GCC)
The Gulf Cooperation Council is a
regional organisation consisting of
Bahrain, Kuwait, Oman, Qatar, Saudia
Arabia, and the United Arab Emirates.
Interest rate risk
The risk of an adverse impact on
theGroup’s income statement due
tochanges in interest rates.
Internal model approach (IMA)
The approach used to calculate market
risk capital and risk-weighted assets
with an internal market risk model
approved by the Prudential Regulation
Authority under the terms of CRD/CRR.
Internal ratings-based
approach (IRB)
Risk-weighting methodology in
accordance with the Basel Capital
Accord where capital requirements
arebased on a firm’s own estimates
ofprudential parameters.
International Accounting
Standard (IAS)
A standard that forms part of the
International Financial Reporting
Standards framework.
International Accounting
Standards Board (IASB)
An independent standard-setting
bodyresponsible for the development
and publication of IFRS and
approvinginterpretations of
standardsrecommended by the IFRS
Interpretations Committee (IFRIC).
International Financial
Reporting Standards (IFRS)
A set of international accounting
standards developed and issued by
theInternational Accounting Standards
Board, consisting of principles-based
guidance contained within IFRS and
IAS. All companies that have issued
publicly traded securities in the EU
arerequired to prepare annual and
interim reports under IFRS and IAS
endorsed by the EU.
IFRS Interpretations Committee
(IFRIC)
Supports the IASB in providing
authoritative guidance on the
accounting treatment of issues not
specifically dealt with by existing
IFRSand IAS.
Investment grade
A debt security, treasury bill or similar
instrument with a credit rating
measured by external agencies of
AAAto BBB.
Leverage ratio
A ratio introduced under CRD IV
thatcompares Tier 1 capital to total
exposures, including certain exposures
held off-balance sheet as adjusted
bystipulated credit conversion factors.
Intended to be a simple, non-risk-based
backstop measure.
Liquidation portfolio
A portfolio of assets beyond our current
risk appetite metrics held for liquidation.
Liquidity coverage ratio (LCR)
The ratio of the stock of high-quality
liquid assets to expected net cash
outflows over the following 30 days.
High-quality liquid assets should be
unencumbered, liquid in markets during
a time of stress and, ideally, be central
bank eligible.
Loan exposure
Loans and advances to customers
reported on the balance sheet held
atamortised cost or Fair Value through
Other Comprehensive Income, non-
cancellable credit commitments and
cancellable credit commitments for
credit cards and overdraft facilities.
Loans and advances to banks
Drawn amounts loaned to credit
institutions including securities bought
under reverse repo.
Loans and advances
tocustomers
This represents drawn lending made
under bilateral agreements with
customers entered in the normal course
of business and is based on the legal
form of the instrument.
Loans past due
Loans on which payments have been
due for up to a maximum of 90 days
including those on which partial
payments are being made.
Loans subject to forbearance
–impaired
Loans where the terms have been
renegotiated on terms not consistent
with current market levels due to
financial difficulties of the borrower.
Loans in this category are necessarily
impaired. See ‘forbearance.
Annual Report 2025 | Standard Chartered 473
Supplementary information
Loan-to-value ratio (LTV)
A calculation which expresses the
amount of a first mortgage lien as
apercentage of the total appraised
value of real property. The loan-to-value
ratio is used in determining the
appropriate level of risk for the loan
and therefore the correct price of the
loan to the borrower.
Loss given default (LGD)
The percentage of an exposure that
alender expects to lose in the event
ofobligor default.
Loss rate
Uses an adjusted gross charge-off rate,
developed using monthly write-off and
recoveries over the preceding 12 months
and total outstanding balances.
Malus
An arrangement that permits the
Group to prevent vesting of all or part
of the amount of an unvested variable
remuneration award, due to a specific
crystallised risk, behaviour, conduct
oradverse performance outcome.
Master netting agreement
An agreement between two
counterparties that have multiple
derivative contracts with each other
that provide for the net settlement of
all contracts through a single payment,
in a single currency, in the event of
default on, or termination of, any
onecontract.
Mezzanine capital
Financing that combines debt and
equity characteristics. For example,
aloan that also confers some profit
participation to the lender.
Minimum requirement for own
funds and eligible liabilities
(MREL)
A requirement under the Bank Recovery
and Resolution Directive for EU
resolution authorities to set a minimum
requirement for own funds and eligible
liabilities for banks, implementing the
Financial Stability Board’s Total Loss
Absorbing Capacity (TLAC) standard.
MREL is intended to ensure that there
issufficient equity and specific types
ofliabilities to facilitate an orderly
resolution that minimises any impact
on financial stability and ensures the
continuity of critical functions and
avoids exposing taxpayers to loss.
Net asset value (NAV)
per share
Ratio of net assets (total assets less
total liabilities) to the number of
ordinary shares outstanding at the
endof a reporting period.
Net exposure
The aggregate of loans and advances
to customers/loans and advances
tobanks after impairment provisions,
restricted balances with central banks,
derivatives (net of master netting
agreements), investment debt and
equity securities, and letters of credit
and guarantees.
Net interest income (NII)
The difference between interest
received on assets and interest paid
onliabilities.
Net stable funding ratio (NSFR)
The ratio of available stable funding to
required stable funding over a one-year
time horizon, assuming a stressed
scenario. It is a longer-term liquidity
measure designed to restrain the
amount of wholesale borrowing and
encourage stable funding over a year.
Net-zero
Net-zero refers to a condition in which
human-caused residual greenhouse
gas emissions are balanced by
human-led removals over a specified
period and within specified boundaries.
Net-zero roadmap
Our Net-zero Roadmap refers to the
short and medium-term objectives and
quantifiable targets the Group has set
to achieve net zero carbon emissions
inour operations by 2025 and in our
financed emissions by 2050.
Non-linearity
Non-linearity of expected credit loss
occurs when the average of expected
credit loss for a portfolio is higher than
the base case (median) because a bad
economic environment could have a
larger impact on ECL calculation than
a good economic environment.
Non-performing loans (NPLs)
Any loan that is more than 90 days
past due or is otherwise individually
impaired. All NPLs are reported as
partof Stage 3 classification of loans
(see‘Stage 3’).
Normalised
Refer to Underlying/normalised
intheAlternative performance
measuressection.
Operating expenses
Employee and premises costs,
generaland administrative expenses,
depreciation and amortisation.
Underlying operating expenses
excludeexpenses as described in
theUnderlying/normalised in the
Alternative Performance Measures
section. A reconciliation between
underlying and reported earnings
iscontained in Note 2 to the
financialstatements.
Operating income
oroperatingprofit
Net interest, net fee and net trading
income, as well as other operating
income. Underlying operating income
represents the income line items above,
on an underlying basis. See Underlying/
normalised in the Alternative
Performance Measures section.
Over-the-counter (OTC)
derivatives
A bilateral transaction (e.g. derivatives)
not exchange traded and valued using
valuation models.
Own credit adjustment (OCA)
An adjustment to the Group’s issued
debt designated at fair value through
profit or loss that reflects the possibility
that the Group may default and not pay
the full market value of the contracts.
Physical risks
Risks arising from increasing severity
and frequency of climate and
weather-related events, which
candamage property and other
infrastructure, disrupt supply chains,
and impact food production.
Thiscouldlead to declining asset
valuations andchallenges with
insurance claims, resulting in greater
financial losses. Indirect effects on the
macroeconomic environment, such as
lower output and productivity, may
exacerbate these direct impacts.
Glossary
Standard Chartered | Annual Report 2025474
Pillar 1
The first pillar of the Basel framework
which provides the approach to
calculation of the minimum capital
requirements for credit, market and
operational risk. Minimum capital
requirements are 8 per cent of the
Group’s risk-weighted assets.
Pillar 2
The second pillar of the Basel
framework which requires banks to
undertake a comprehensive assessment
of their risks and to determine the
appropriate amounts of capital to be
held against these risks where other
suitable mitigants are not available.
Pillar 3
The third pillar of the Basel framework
which aims to provide a consistent and
comprehensive disclosure framework
that enhances comparability
betweenbanks and further promotes
improvements in risk practices.
Priority Banking
Priority Banking customers are
individuals who have met certain
criteria for deposits, Assets under
management, mortgage loans
ormonthly payroll. Criteria varies
bycountry.
Private equity investments
Equity securities in operating
companies generally not quoted on a
public exchange. Investment in private
equity often involves the investment
ofcapital in private companies. Capital
for private equity investment is raised
by retail or institutional investors and
used to fund investment strategies such
as leveraged buyouts, venture capital,
growth capital, distressed investments
and mezzanine capital.
Probability of default (PD)
An internal estimate for each borrower
grade of the likelihood that an obligor
will default on an obligation over a
given time horizon.
Probability weighted
Obtained by considering the values
themetric can assume, weighted by
the probability of each value occurring.
Profit/(loss) attributable
toordinary shareholders
Profit (loss) for the year after
non-controlling interests and dividends
declared in respect of preference
shares classified as equity.
Prudent valuation adjustment
(PVA)
An adjustment to CET1 capital to
reflectthe difference between fair value
andprudent value positions, where
theapplication of prudence results
inalower absolute carrying value than
recognised in the financial statements.
Prudential Regulation
Authority (PRA)
The statutory body responsible for
theprudential supervision of banks,
building societies, credit unions, insurers
and a small number of significant
investment firms in the UK. The PRA
isapart of the Bank of England.
Regulatory consolidation
The regulatory consolidation
ofStandard Chartered PLC are
consolidated results that differs from
the statutory consolidation in that
itincludes certain subsidiaries on
aproportionate consolidation basis.
These entities are equity consolidated
for statutory accounting purposes.
The regulatory consolidation excludes
certain entities, which are consolidated
for statutory accounting purposes.
Repurchase agreement (repo)
/reverse repurchase agreement
(reverse repo)
A repo is a short-term funding
agreement, which allows a borrower
tosell a financial asset, such as
asset-backed securities or government
bonds as collateral for cash. As part
ofthe agreement the borrower agrees
to repurchase the security at some
laterdate, usually less than 30 days,
repaying the proceeds of the loan.
Forthe party on the other end of the
transaction (buying the security and
agreeing to sell in the future), it is
areverse repurchase agreement
orreverse repo.
Residential mortgage
A loan to purchase a residential
property which is then used as
collateral to guarantee repayment of
the loan. The borrower gives the lender
a lien against the property, and the
lender can foreclose on the property
ifthe borrower does not repay the
loanper the agreed terms. Also known
asahome loan.
Return on risk-weighted assets
(RoRWA)
Profit before tax for year as a
percentage of RWA. Profit may be
statutory or underlying and is specified
where used.
See ‘Risk-weighted assets
Revenue-based carbon
intensity
A measurement of the quantity
ofgreenhouse gases emitted by our
clients per USD of their revenue.
Risk-weighted assets (RWA)
A measure of a bank’s assets
adjusted for their associated risks,
expressed asapercentage of an
exposure value in accordance with
the applicable standardised or IRB
approach provisions.
Risks not in VaR (RNIV)
A framework for identifying and
quantifying marginal types of market
risk that are not captured in the value
at risk (VaR) measure for any reason,
such as being a far-tail risk, or the
necessary historical market data not
being available.
Roll rate
A model used to estimate loan losses
using a matrix that gives average
loanmigration rate from delinquency
states from period to period. A matrix
multiplication is then performed to
generate the final PDs by delinquency
bucket over different time horizons.
Scope 1 emissions
Arise from the consumption of energy
from direct sources during the use
ofproperties occupied by the Group.
On-site combustion of fuels including
diesel, liquefied petroleum gas and
natural gas is recorded using meters
or,where metering is not available,
collated from fuel vendor invoices.
Annual Report 2025 | Standard Chartered 475
Supplementary information
Scope 2 emissions
Arise from the consumption of energy
from indirect sources – primarily
electricity – within the space occupied
by the Group, whether leased or
owned. This can include base building
services under landlord control but over
which we typically hold a reasonable
degree of influence.
Scope 3 emissions
Occur in the value chain of the
Group,including both upstream and
downstream emissions, but arise from
sources not controlled by the Group.
Secured (fully and partially)
The borrower pledges an asset as
collateral for a loan which, in the event
that the borrower defaults, the Group
isable to take possession of. All secured
loans are considered fully secured if
thefair value of the collateral is equal
to orgreater than the loan at the time
oforigination. All other secured loans
are considered to be partially secured.
Securitisation
The process by which credit exposures
are aggregated into a pool, which
isused to back new securities. Under
traditional securitisation transactions,
assets are sold to a structured entity
which then issues new securities to
investors at different levels of seniority
(credit tranching). This allows the credit
quality of the assets to be separated
from the credit rating of the originating
institution and transfers risk to external
investors in a way that meets their risk
appetite. Under synthetic securitisation
transactions, the transfer of risk is
achieved using credit derivatives or
guarantees, and the exposures being
securitised remain exposures of the
originating institution.
Senior debt
Debt that takes priority over other
unsecured or otherwise more junior
debt owed by the issuer. Senior debt
has greater seniority in the issuer’s
capital structure than subordinated
debt. In the event the issuer goes
bankrupt, senior debt, theoretically,
must be repaid before other creditors
receive any payment.
Significant increase in credit
risk (SICR)
Assessed by comparing the risk of
default of an exposure at the reporting
date to the risk of default at origination
(after considering the passage of time).
Solo
A consolidated group of Standard
Chartered Bank Group companies
asdefined by the Prudential Regulation
Authority and differs from Standard
Chartered Bank Company in that
itincludes the full consolidation
ofcertainsubsidiaries.
Sovereign exposures
Exposures to central governments
andcentral government departments,
central banks and entities owned or
guaranteed by the aforementioned.
Sovereign exposures, as defined by the
European Banking Authority, include
only exposures to central governments.
Stage 1
Financial assets within the scope
ofIFRS 9 ECL that have not experienced
asignificant increase in credit risk since
origination and impairment recognised
on the basis of 12 months expected
credit losses.
Stage 2
Financial assets within the scope
ofIFRS 9 ECL that have experienced
asignificant increase in credit risk
sinceorigination and impairment
isrecognised on the basis of lifetime
expected credit losses.
Stage 3
Financial assets within the scope
ofIFRS 9 ECL that are in default
andconsidered credit-impaired
(non-performing loans).
Standardised approach
In relation to credit risk, a method
forcalculating credit risk capital
requirements using External Credit
Assessment Institution (ECAI) ratings
and supervisory risk weights. In relation
to operational risk, a method of
calculating the operational capital
requirement by the application of a
supervisory defined percentage charge
to the gross income of eight specified
business lines.
Structured note
An investment tool which pays a
returnlinked to the value or level of a
specified asset or index and sometimes
offers capital protection if the value
declines. Structured notes can be
linkedto equities, interest rates, funds,
commodities and foreign currency.
Subordinated liabilities
Liabilities which, in the event of
insolvency or liquidation of the issuer,
are subordinated to the claims
ofdepositors and other creditors
oftheissuer.
Sustainability aspirations
A series of targets and metrics that
guide our efforts to promote social
andeconomic development and
deliver sustainable outcomes.
Theseaspirations focus on the areas
we can make the most material
contribution tothe delivery of the
UNSustainable Development Goals
(SDGs). TheSDGsare 17 interconnected
global goals adopted in 2015 that serve
asablueprint for a more sustainable
futureby 2030, aiming to end poverty
and inequality, protect the planet,
andensure peace, health, and
prosperityworldwide.
Sustainable Finance assets
Assets from clients whose activities are
aligned with the Sustainability Bond
Framework and/or from transactions
for which the use of proceeds will be
utilised directly to contribute towards
eligible themes and activities set
outwithin the Sustainability
BondFramework.
Sustainable Finance income
Our sustainable finance income is
prepared on an underlying basis, which
includes client income generated from
our sustainable finance product suite
net of funding costs, as well as from
clients recognised as green, social,
sustainable or transition pureplays.
Sustainability-Linked Loan
Any type of loan instrument for
whichthe economic characteristics
canvary depending on whether the
counterparty achieves ambitious,
material and quantifiable
predetermined sustainability
performance targets.
Glossary
Standard Chartered | Annual Report 2025476
Tier 1 capital
The sum of CET1 capital and
AdditionalTier 1 capital.
Tier 1 capital ratio
Tier 1 capital as a percentage ofrisk-
weighted assets.
Tier 2 capital
Tier 2 capital comprises qualifying
subordinated liabilities and related
share premium accounts.
Total loss absorbing capacity
(TLAC)
An international standard for TLAC
issued by the FSB, which requires
G-SIBsto have sufficient loss-absorbing
and recapitalisation capacity available
inresolution, to minimise impacts
onfinancial stability, maintain the
continuity of critical functions and
avoid exposing public funds to loss.
Transition risks
Risks arising from the adjustment
towards a carbon-neutral economy,
which will require significant structural
changes to the economy. These
changes will prompt a reassessment
ofa wide range of asset values, a
change in energy prices, and a fall in
income and creditworthiness of some
borrowers. Inturn, this could lead to
credit losses for lenders and market
losses forinvestors.
UK bank levy
A levy that applies to certain UK banks
and the UK operations of foreign
banks. The levy is payable each year
based ona percentage of the
chargeable equities and liabilities on
the Group’s UK tax resident entities’
balance sheets. Key exclusions from
chargeable equities and liabilities
include Tier 1 capital, insured or
guaranteed retail deposits, repos
secured on certain sovereign debt and
liabilities subject tonetting.
Unbiased
Not overly optimistic or pessimistic,
represents information that is not
slanted, weighted, emphasised,
de-emphasised or otherwise
manipulated to increase the probability
that the financial information will be
received favourably or unfavourably
byusers.
Underlying
Refer to ‘Underlying/normalised’
intheAlternative performance
measuressection.
Unlikely to pay
Indications of unlikeliness to pay
include: placing the credit obligation
onnon-accrued status; the recognition
of a specific credit adjustment resulting
from a significant perceived decline
incredit quality subsequent to the
Group taking on the exposure; selling
the credit obligation at a material
credit-related economic loss; the Group
consenting to a distressed restructuring
of the credit obligation where this is
likely to result in a diminished financial
obligation caused by the material
forgiveness, or postponement, of
principal, interest or, where relevant
fees; filing for the obligor’s bankruptcy
or a similar order in respect of an
obligor’s credit obligation to the
Group;the obligor has sought or has
been placed in bankruptcy or similar
protection where this would avoid or
delay repayment of a credit obligation
to the Group.
Value at Risk (VaR)
A quantitative measure of market risk
estimating the potential loss that will
not be exceeded in a set time period
ata set statistical confidence level.
Value in Use (ViU)
The present value of the future
expected cash flows expected to be
derived from an asset or CGU.
Write-downs
After an advance has been identified
as impaired and is subject to an
impairment provision, the stage may
be reached whereby it is concluded
that there is no realistic prospect
offurther recovery. Write-downs will
occurwhen, and to the extent that,
thewhole or part of a debt is
considered irrecoverable.
Annual Report 2025 | Standard Chartered 477
Supplementary information
Sustainability and ESG reporting
The Group includes Environmental, Social and Governance
(ESG) and sustainability information in this Annual Report,
providing investors and stakeholders with an understanding
of the implications of relevant sustainability-related risks and
opportunities and progress against our objectives.
We have observed our obligations under: (i) sections 414CA
and 414CB of the UK Companies Act 2006; (ii) the UK’s
Financial Conduct Authority’s Listing Rules in respect of
climate-related disclosures; and (iii) the ESG Reporting Guide
contained in Appendix C2 to the Rules Governing the Listing
of Securities on the Stock Exchange of Hong Kong Limited.
We have made disclosures consistent with the Task Force
onClimate-Related Financial Disclosures (TCFD)
recommendations and recommended disclosures
throughoutthis Annual Report.
Additionally, we publish an ESG reporting index against
thevoluntary Global Reporting Initiative (GRI) Universal
Standards and select GRI Topic Standards, and the World
Economic Forum Stakeholder Capitalism Metrics framework.
Read more on the Group’s sustainability-related disclosures at
sc.com/sustainabilitylibrary
Alternative performance measures
The Group uses a number of alternative performance
measures in the discussion of its performance. These measures
exclude certain items which management believes are not
representative of the underlying performance of the business
and which distort period-on-period comparison. They provide
the reader with insight into how management measures
theperformance of the business.
For more information on Standard Chartered visit
sc.com
All information presented in the Group Chair’s
statement, andGroup Chief Executive’s and Group
Chief Financial Officer’s reviews are on an underlying
basis unless otherwise stated. A reconciliation from
underlying to reported and definitions of alternative
performance measures can be found on page 65.
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. Disclosures in the Strategic report,
Financial review, Sustainability review, Directors’
report, Risk review and Capital review and
Supplementary information are unaudited unless
otherwise stated.
Unless context requires within the 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
and 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.
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 PLC 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.
Standard Chartered PLC Stock codes are: LSE STAN.
LN and HKSE 02888.
About this report
Standard Chartered | Annual Report 2025478
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Standard Chartered PLC. All rights
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Registered Office: 1 Basinghall Avenue,
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+44 (0) 20 7885 8888.
Principal place of business in Hong Kong:
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Standard Chartered PLC Annual Report 2025
Global headquarters
Standard Chartered Group
1 Basinghall Avenue
London, EC2V 5DD
United Kingdom
+44 (0)20 7885 8888
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LSE stock code: STAN.LN
HKSE stock code: 02888
Chinese translation
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Investor Services Limited
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WanChai
Hong Kong
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