1

FINANCIAL STANDARD CHARTERED BANKPERFORMANCEACCOUNTING PRESENTATION / EBBA 4A – GROUP 2

AGENDAOUR CONTENT

Introduction

2 Financial Statement

3 Financial Analysis & Evaluation

4 Ratio Analysis

1

3

INTRODUCTION1

INTRODUCTION

Multi-national bankFounded: 1969 (British)1700 branches, 70 countries

BRAND

VALUEPositively impact the economy and community

MARKET

Mainly Asia, Africa and Middle West

5

FINANCIAL 2 STATEMENT

BALANCE SHEET

($million) 2010 2011 2012 % 10-11 %11-12

ASSET Advances & investments 329 385 417 8 16

Assets held at fair value 145 163 172 6 18

Other 40 43 47 8 8Total 516 592 636 7 16

LIABILITIES Deposit & debt securities 366 428 470 16 10Subordinated liabilities 15 16 18 5 12Other 94 106 101 11 3Total 478 551 590 17 7

EQUITY 39 41 46 6 11

2010 2011 2012

517593

637

126 135 143

389456

7.2

Total assets

Wholesale Total Assets

Consumer Total Assets

TOTAL ASSETS

($billion)

+7%

+8%

+6%

INCOME STATEMENT

($million) 2010 2011 2012 % 2010-11 %2011-12

Net interest income 8,47 10,15 11,01 20 9

Non-interest income 7,59 7,48 8,06 (1.4) 7.7

Operating income 16,06 19,07 10 8

Operating expenses -9,02 -9,92 -10,90 10 10

Operating profit before tax 7,04 7,72 8,18 10 6

Profit before taxation 6,12 6,78 6,88 11 2

Profit for the year 4,41 4,93 4,99 12 1

OPERATING INCOME

($million)

2010 2011 2012

16,1017.60000

19.10000

9.9 10.8 11.8

6.1 6.8 7.2Operating Income

Wholesale Operating Income

Consumer Operating Income

+8%

+9%

+6%

PROFIT BEFORE TAX

($million)

2010 2011 2012

6.100006.70000 6.90000

4.85.2 5

1.3 1.6 1.8 Operating Profit

Wholesale Banking Profit

Consumer Banking Profit

+1%

-2%

+8%

CASHFLOW STATEMENT

($million) 2010 2011 2012

Net cash from operating activities -16,64 18,37 17,88

Net cash from investing activities 1,87 -12,47 -11,44

Net cash from financing activities 5,12 4,91 3,67

FINANCIAL RATIO

2011 2012

Normalised return on ordinary shareholders’ equity

12.8% 12.2%

Basic cost-income ratio 57.1% 56.2%

Cost-income ratio – normalised basis 53.8% 56.5%

Capital ratios:

Tier 1 capital 13.4% 13.7%

Total capital 17.4% 17.6%

13

FINANCIAL RATIOS & EVALUTION3

FINANCIAL RATIO

RETURN ON COMMON STOCKHOLDERS’ EQUITY

2011 12.5%For each $1 invested the company earn $12.5

2012 11.6%For each $1 invested the company earn $11.6

FINANCIAL RATIO

RETURN ON ASSETS

2011 0.89For each $1 in asset there is 0.89 cents in profit

2012 0.81For each $1 in asset there is 0.81 cents in profit

FINANCIAL RATIO

PROFIT MARGIN

201127.97

Every $1 of sales results in net income by $27,97

201226.14

Every $1 of sales results in net income by $26,14

FINANCIAL RATIO

ASSETS TURNOVER

2011 0.03 times

2012 0.03 times

FINANCIAL RATIO

COST-INCOME RATIO

2011 56.2

2012 57.1

19

ANALYSIS3 COMPARISON & EVALUATION

INTRACOMPANY

INTRACOMPANY

The comparison of financial statement (horizontal analysis) over a 2 year period is shown above.

CASH FLOW STATEMENTOPERATING ACTIVITIES

Net Cash from operating activities increased Net Income increased.

INVESTING ACTIVITIES

Negative number Heavy investment expenditures

FINANCING ACTIVITIES

Decreased number The company is servicing debt/is making dividend payments & stock repurchases

22

Q&A4